Pacific Grove City Council
June 4, 2025

CITY COUNCIL

SPECIAL MEETING AGENDA
Wednesday, June 4, 2025, 5:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA Under the Brown Act, public comment for matters on the agenda must relate to that agenda item and public comments for matters not on the agenda must relate to the subject matter jurisdiction of this legislative body. This is a warning that if a member of the public attending this meeting remotely or in-person violates the Brown Act by failing to comply with these requirements of the Brown Act, then the Mayor or Chair may request that speaker be muted. If a member of the public attending this meeting in-person engages in disruptive behavior that disturbs the orderly conduct of the meeting, they may be removed from the meeting after a warning, pursuant to Council Policy 000-17.

PACIFIC GROVE MEETINGS ARE CONDUCTED IN PERSON AT CITY HALL COUNCIL CHAMBER AND VIRTUALLY.

PLEASE NOTE THE MEETING WILL PROCEED AS NORMAL EVEN IF THERE ARE TECHNICAL DIFFICULTIES ACCESSING ZOOM.

THE CITY WILL DO ITS BEST TO RESOLVE ANY TECHNICAL ISSUES AS QUICKLY AS POSSIBLE.

Join the Zoom Meeting to participate live at:
https://www.cityofpacificgrove.org/Zoom_Closed
Please click here for directions to dial into the meeting audio.

AGENDA

CALL TO ORDER

SPECIAL MEETING

PUBLIC COMMENT ON SPECIAL MEETING MATTERS
Comments from the public will not receive Council action. Comments must deal with matters on the Special Meeting agenda and will be limited to three minutes.

A. Public Employment, (Government Code § 54957)
Title: City Manager Performance Evaluation
B. Conference with Labor Negotiators (Government Code Section 54957.6) City Negotiators: Matthew Mogensen, City Manager, Fred Marsh, Administrative Services Director, Che Johnson, Esq. Liebert, Cassidy Whitmore
Employee Organization: Police Officers Association
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1 1. Written Public Comment

ADJOURNMENT
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2 CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, June 4, 2025, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA The Council will not begin consideration of any item on this agenda later than 10:00 p.m. unless such consideration is approved. Any items on this agenda not considered this evening will be continued to a future meeting.

Copies of the agenda packet are available for review at the Pacific Grove Library, in the Finance Department, and electronically at www.cityofpacificgrove.org/agendas. The most effective method of communication with the City Council is by sending an email to [email protected]. In order to allow the City Council adequate time to review communication related to an agenda item, it is recommended that the communication be sent no later than 9:00 AM on the day prior to the City Council meeting. Public comments received through this email address by noon on the day of the meeting will be posted with the corresponding agenda item.

Under the Brown Act, public comment for matters on the agenda must relate to that agenda item and public comments for matters not on the agenda must relate to the subject matter jurisdiction of this legislative body. This is a warning that if a member of the public attending this meeting remotely or in-person violates the Brown Act by failing to comply with these requirements of the Brown Act, then the Mayor or Chair may request that speaker be muted. If a member of the public attending this meeting in-person engages in disruptive behavior that disturbs the orderly conduct of the meeting, they may be removed from the meeting after a warning, pursuant to Council Policy 000-17.

PACIFIC GROVE COUNCIL MEETINGS ARE CONDUCTED IN PERSON AT CITY HALL COUNCIL CHAMBER AND VIRTUALLY.

PLEASE NOTE THE MEETING WILL PROCEED AS NORMAL EVEN IF THERE ARE TECHNICAL DIFFICULTIES ACCESSING ZOOM.

THE CITY WILL DO ITS BEST TO RESOLVE ANY TECHNICAL ISSUES AS QUICKLY AS POSSIBLE.

THE PUBLIC MAY ALSO VIEW THE MEETING ON PENINSULA CHANNEL 25.

JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://www.cityofpacificgrove.org/Zoom_CC
Please click here for directions to dial into the meeting audio.

AGENDA

CALL TO ORDER
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3 PLEDGE OF ALLEGIANCE: Councilmember Garfield

1. APPROVAL OF AGENDA

2. PRESENTATIONS
A. Pride Month Proclamation PG 9
Reference: Nick Smith, Mayor
Recommended Action: Receive the presentation.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

3. COUNCIL AND STAFF ANNOUNCEMENTS (City-Related Items Only) A. Report on Closed Session by City Attorney
B. Other

4. GENERAL PUBLIC COMMENT
General Public Comment must deal with matters subject to the jurisdiction of the City and the Council that are not on the Regular Agenda. This is the appropriate place to comment as to items on the Consent Agenda, only if you do not wish to have the item pulled for individual consideration by the Council. Comments from the public will be limited to three minutes and will not receive Council action. Comments regarding items on the Regular Agenda shall be heard prior to Council’s consideration of such items at the time such items are called. Whenever possible, written correspondence should be submitted to the Council in advance of the meeting, to provide adequate time for its consideration.

A. Written General Public Comment

CONSENT AGENDA
The Consent Agenda deals with routine and non-controversial matters, and may include action on resolutions, ordinances, or other public hearings for which testimony is not anticipated. The vote on the Consent Agenda shall apply to each item that has not been removed. Any member of Council, staff, or the public may remove an item from the Consent Agenda for individual consideration. When items are pulled for discussion, they will be automatically placed at the end of their respective section within the Regular Agenda. One motion shall be made to adopt all non-removed items on the Consent Agenda.

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business A. Minutes of the City Council May 21, 2025 Regular Meeting PG 11 PGCC 6-4-25
4 Reference: Sandra Kandell, City Clerk
Recommended Action: Approve the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

6. RESOLUTIONS
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. GreenWaste FY 25/26 Rate Increase PG 19
Reference: George Fuerst, Environmental Program Manager Recommended Action: Adopt a Resolution affirming the accuracy of GreenWaste Recovery rate increase, per the franchise agreement, of 3.80% for FY 25/26.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

7. ORDINANCES
Items pulled from this section will be placed under 11. Public Hearings A. Local Coastal Program Amendment - Coastal Hazards PG 33 Reference: Joseph Sidor, Contract Planner
Recommended Action: Hold a second reading and adopt an Ordinance amending Pacific Grove Municipal Code Section 23.90.140(b); and direct City Staff to transmit the amendments to the California Coastal Commission for confirmation by the Coastal Commission at their next regular meeting and incorporation into the City’s Local Coastal Program.

CEQA: Statutory Exemption, CEQA Guidelines Section 15265, Adoption of Coastal Plans and Programs

8. REPORTS – INFORMATION ONLY
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Housing Element Monthly Status Update PG 39
Reference: Joseph Sidor, Contract Planner
Recommended Action: 1. Receive the report.

2. Alternatively, discuss and take other action related to this item.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

9. REPORTS – REQUIRING ACTION
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business
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5 A. Monterey Regional Waste Management District MOU PG 41 Reference: George Fuerst, Environmental Program Manager Recommended Action: Authorize a Memorandum of Understanding (MOU) between Monterey Regional Waste Management District and the City regarding assistance with California Senate Bill 1383 compliance.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. FY26/27 Extension with Topes Tree Service Inc. for Tree Maintenance Services in Public Right of Way
Reference: Daniel Gho, Public Works Director/Deputy City Manager PG 61 Recommended Action: 1. Authorize FY26/27 extension with Topes Tree Service Inc. to provide Tree Maintenance Services for trees in the public right-of-way and on City-owned properties in an amount not to exceed $250,000.

2. Alternatively, take other action related to this item CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Emergency removal and replacement of a manhole at Beach Street and Del Monte PG 63 Reference: Daniel Gho, Public Works Director/Deputy City Manager Recommended Action: 1. Authorize the execution of an agreement with Monterey Peninsula Engineering for the emergency removal and replacement of a manhole at Beach Street and Del Monte Boulevard for a cost not to exceed $49,850 plus a 15% contingency.

2. Alternatively, discuss and take other action related to this item.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES Items pulled from this section will be placed under 13. New Business

REGULAR AGENDA

11. PUBLIC HEARINGS
For public hearings involving a quasi-judicial determination by the Council, the proponent of an item may be given 10 minutes to speak and others in support of the proponent’s position may be given three minutes each. A designated spokesperson for opposition to the item may be given 10 minutes to speak and all others in opposition may be given three minutes each. Very brief rebuttal and surrebuttal may be allowed in the sole discretion of the Council. In public hearings not involving a quasi-judicial determination by the Council, all persons may be given three minutes to speak on the matter.

A. Ordinance Amending the Salary Classification Schedule PG 65 Reference: Leticia Livian, Human Resources Director
Recommended Action:

PGCC 6-4-25
6 Recommended Action:

1. Request the City Attorney read the title of the ordinance;

2. Motion to waive further reading of the ordinance;
Introduce and hold a first reading of an ordinance to amend the salary classification schedule; and approve the amendment; and

3. Direct that a summary of a proposed ordinance be published as approved by the City Attorney.

4. CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Ordinance to Adopt the Fiscal Years 25-26 and 26-27 Operating and Capital PG 72 Improvement Budget
Reference: Fred Marsh, Administrative Services Director Recommended Action:

1. Request the City Attorney to read the title of the ordinance;

2. Motion to waive further reading of the ordinance;
Introduce and hold the first reading of an ordinance to adopt the Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget

3. Direct that publication of the ordinance will be satisfied by publication of a summary approved by the City Attorney.

4. CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Consideration of Potential Ordinance of the City Council of the City of Pacific Grove PG 210 Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission
Reference: Matthew Mogensen, City Manager
Recommended Action:

Discuss potential Ordinance of the City Council of the City of Pacific Grove Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission (Attachment 1). If the Council directs to proceed with the potential Ordinance, then the following are the recommended actions.

1. 2. Request the City Attorney read the title of the ordinance.

3. Motion to waive further reading of the ordinance.

Introduce and hold a first reading of an Ordinance of the City Council of the City of Pacific Grove Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission.

4. Direct that publication of the ordinance will be satisfied by publication of a summary approved by the City Attorney.

5. 6. Other action related to this Agenda Item
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

12. UNFINISHED AND ONGOING BUSINESS
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7 A. Pedestrian Safety - Central/Fountain Ave & Grand/Fountain Ave This item was pulled from the 5/7 Consent Agenda and continued to the next available City Council meeting.

Reference: Daniel Gho, Public Works Director/Deputy City Manager PG 216 Recommended Action:

1. Approve the Central, Grand and Fountain Avenue reconfiguration; and

2. Authorize staff to issue a call for bids for the project.

3. Alternatively, discuss and take other action related to this item.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

13. NEW BUSINESS

14. FULL PRESENTATIONS

15. CLOSED SESSION

ADJOURNMENT
NOTICE OF ADA COMPLIANCE: Pursuant to Title II of the Americans with Disabilities Act (Codified At 42 United States Code Section 12101 and 28 Code of Federal Regulations Part 35), and Section 504 of the Rehabilitation Act of 1973, the City of Pacific Grove does not discriminate on the basis of race, color, religion, national origin, ancestry, sex, disability, age or sexual orientation in the provision of any services, programs, or activities. The City of Pacific Grove does not discriminate against persons with disabilities. City Hall is an accessible facility. A limited number of assisted listening devices will be available at this meeting. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting or provide the requested agenda format.

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8 Agenda No. 2 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Nick Smith, Mayor
MEETING DATE: June 04, 2025
SUBJECT: Pride Month Proclamation
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Receive the presentation.

Attachments
Pride Month Proclamation
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9 PGCC 6-4-25
10 Agenda No. 5 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: June 04, 2025
SUBJECT: Minutes of the City Council May 21, 2025 Regular Meeting CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve the minutes.

Attachments
Draft Minutes 5-21-25
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11 1

DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

REGULAR MEETING
Wednesday, May 21, 2025, 6:00 P.M.

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA JOIN THE ZOOM WEBINAR TO PARTICIPATE LIVE AT:
https://www.cityofpacificgrove.org/Zoom_CC

CALL TO ORDER
Mayor called the meeting to order at 6:00 p.m. Present in Chamber: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick.

PLEDGE OF ALLEGIANCE
Councilmember Rau led the pledge of allegiance.

1. APPROVAL OF AGENDA
Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted 7-0 to approve the agenda.

2. PRESENTATIONS

3. COUNCIL AND STAFF ANNOUNCEMENTS (City-Related Items Only) A. Council and staff made general announcements.

4. GENERAL PUBLIC COMMENT
General Public Comment received from Geva Arcanin, Jean Anton, Sally Moore, and Jane Haines.

A. Written General Public Comment

CONSENT AGENDA
Action: Consent Agenda item 7A and 9B were pulled from the Consent Agenda. Consent Agenda item 7A was considered immediately following the Consent Agenda and Consent Agenda item 9B was considered after Regular Agenda item 13A.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted 7-0 to approve the Consent Agenda as modified.

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
A. Minutes of the City Council May 7, 2025 Special Session and Regular Meeting Action: Approved the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
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12 2

6. RESOLUTIONS

7. ORDINANCES
A. Second Reading of an Ordinance Increasing the Compensation of the Mayor and City Councilmembers This item was pulled and considered immediately following the Consent Agenda.

Reference: Brian Pierik, City Attorney
Recommended Action: Hold second reading and adopt an Ordinance of the City Council of the City of Pacific Grove Increasing the Compensation of the Mayor and Councilmembers.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

8. REPORTS – INFORMATION ONLY
A. Third Quarter FY 24/25 Capital Project Report & Update Action: Received the report.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Third Quarter Treasurer’s Quarterly Report
Action: Received the report.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Third Quarter 24-25 Interim Financial Statements
Action: Received the report.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
D. Check Register April 2025
Action: Received the check register.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
E. Monterey-Salinas Transit Meeting Minutes for April 14, 2025 Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

9. REPORTS – REQUIRING ACTION
A. Contract Amendment Number 3 with Harris and Associates for Planning Services Action: Approved a Professional Services Agreement amendment with Harris & Associates, Inc. for a total contract agreement amount not to exceed $876,805 (Addition of $152,100 to the $724,705 not to exceed amount of the current agreement) for contract planning staffing services for Fiscal Year 25-26.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
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B. Final Draft 2025-2027 Community Goals and Workplan This item was pulled and considered after Regular Agenda item 13A.

Reference: Matthew Mogensen, City Manager
Recommended Action: It is recommended the Council approve/modify the Final Draft 2025-2027 Community Goals and Workplan.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES A. Task Force on Diversity, Equity and Inclusion Meeting Minutes: 3/10/25 and 4/14/25 Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Library Board Regular Meeting Minutes: March 4, 2025 Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Museum Board Minutes - 5/14/24, 8/13/24, 11/12/24
Action: Received the minutes.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
**********

7.A. Second Reading of an Ordinance Increasing the Compensation of the Mayor and City Councilmembers
Public comment received from Inge Lorentzen Daumer and Christie Thomas.

Action: Upon motion by Mayor Smith and seconded by Mayor Pro Tem Amelio, Council voted 5-2, Councilmembers McDonnell and Walkingstick dissenting, to hold second reading and adopt an Ordinance of the City Council of the City of Pacific Grove Increasing the Compensation of the Mayor and Councilmembers. (Ordinance No. 25-007.), deleting all references to medical benefits.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

REGULAR AGENDA

11. PUBLIC HEARINGS
A. Local Coastal Program Amendment - Coastal Hazards
No public comment received.

Action: Council acknowledged receipt of the California Coastal Commission resolution approving the City of Pacific Grove Local Coastal Program Amendment Number LCP-3-PGR-24-0065-1 (Coastal Hazards Update); discussed the proposed City Council resolution amending the text, policies, and figures of the Land Use Plan (LUP), including the addition of a definition for Critical Public Infrastructure (LUP Section 1.10), updating the data and information sources (LUP Section 2.1.1), updating LUP Figure 3 (LUP Section DRAFT PGCC 6-4-25
14 4

2.1.2), and amending Policy HAZ-12 (LUP Section 2.1.4); and discussed the proposed ordinance amending the Implementation Plan (IP) of the Pacific Grove Municipal Code (PGMC Title 23, Chapter 90), including revising the text of IP section 23.90.140(b).

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Mayor Smith Council voted to find that adoption of the proposed resolution and ordinance is statutorily exempt from CEQA pursuant to CEQA Guidelines section 15265.

Motion carried 7-0 with the following roll-call vote:

AYES: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick
NOES: None.

ABSENT: None.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Walkingstick, Council voted to approve a Resolution to Amend the Local Coastal Program, including the Text, Policies, and Figures of the Land Use Plan (LUP sections 1.10, 2.1.1,

2.1.2, and 2.1.4) and Text of the Implementation Plan (Pacific Grove Municipal Code, Chapter 23.90 (Section 23.90.140(b)).

Motion carried 7-0 with the following roll-call vote:

AYES: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick
NOES: None.

ABSENT: None.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember McDonnell, the Council voted to request the City Attorney read the title of the proposed ordinance amending Municipal Code Section 23.90.140(b) to allow for completion of an initial assessment by City Staff; waive further reading of the ordinance; introduce and hold first reading of the proposed ordinance amending Municipal Code Section 23.90.140(b) to allow for completion of an initial assessment by City Staff; and direct a summary of a proposed ordinance be published as approved by the City Attorney.

Motion carried 7-0 with the following roll-call vote:

AYES: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick
NOES: None.

ABSENT: None.

CEQA: Statutory Exemption, CEQA Guidelines Section 15265, Adoption of Coastal Plans and Programs
B. Hospitality Improvement District (HID) program for Fiscal Year 2025-26 No public comment received.

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Action: Upon motion by Councilmember Poduri and seconded by Mayor Pro Tem Amelio, Council voted 7-0 to hold a public hearing to determine majority protests to the annual assessment were not received, adopt Resolution No. 25-009 to approve the annual report, levy the annual assessment, approve the recommended Fiscal Year 2025-26 program, appoint the HID Advisory Board for Fiscal Year 2025-26, and authorize the City Manager to execute an agreement allowing the Pacific Grove Chamber of Commerce to administer the HID budget.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Downtown Business Improvement District (BID) Program for Fiscal Year 2025-26 Public comment received from Christi Thomas.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Poduri, Council voted 7-0 to hold a public hearing to determine majority protest to the annual assessment were not received, adopt Resolution No. 25-010 to approve the annual report, levy the annual assessment, approve the recommended Fiscal Year 2025-26 program, appoint the BID Advisory Board for Fiscal Year 2025-26, and authorize the City Manager to execute an agreement allowing the Pacific Grove Chamber of Commerce to administer the BID budget.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
D. Master Fee Schedule for Fiscal Year 2025-26
Public comment received from Sally Moore and Carmelita Garcia.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember McDonnell, Council voted 7-0 to approve Resolution No. 25-011 adopting the City's FY 25-26 Master Fee Schedule, including the annual Consumer Price Index (CPI) adjustment and other changes as directed by Council.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

12. UNFINISHED AND ONGOING BUSINESS
A. Review of Proposed Two Year General Fund Budget and Review of Investment and Financial Policies
Public comment received from Lisa Ciani.

Action: Council received the report and provide additional direction to Staff regarding the proposed General Fund two year budget, as well as the proposed changes to the City’s financial and investment policies.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

13. NEW BUSINESS
A. "Dancing Monarchs" Art Donation Proposal
Public comment received from Christine Walkingstick, Lisa Ciani, Jane Haines, Christi Thomas, Inge Lorentzen Daumer, and Arnaud Teil.

Action: Upon motion by Councilmember Garfield and seconded by Mayor Pro Tem Amelio, DRAFT PGCC 6-4-25
16 6
Council voted to receive art donation application for one fused glass and stainless steel monarch sculpture.

Motion carried 7-0 with the following roll-call vote:

AYES: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick
NOES: None.

ABSENT: None.

Action: Upon motion by Councilmember Rau and seconded by Councilmember McDonnell, Council voted to direct staff to return with site selection suggestions for the sculpture for Council approval.

Motion carried 7-0 with the following roll-call vote:

AYES: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, Rau, and Walkingstick
NOES: None.

ABSENT: None.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Final Draft 2025-2027 Community Goals and Workplan This item was pulled from the Consent Agenda.

Public comment received from Lisa Ciani.

Action: Upon motion by Councilmember Rau and seconded by Mayor Pro Tem Amelio, Council voted 7-0 to approve the Final Draft 2025-2027 Community Goals and Workplan.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

14. FULL PRESENTATIONS

15. CLOSED SESSION

ADJOURNMENT
Council adjourned the regular meeting at 8:58 pm.

Respectfully Submitted,
Sandra Kandell
City Clerk
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Approved by Mayor: _______________________________Date________________ Attest by City Manager: ____________________________Date_________________ DRAFT PGCC 6-4-25
18 Agenda No. 6 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: George Fuerst, Environmental Program Manager
MEETING DATE: June 04, 2025
SUBJECT: GreenWaste FY 25/26 Rate Increase
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Adopt a Resolution affirming the accuracy of GreenWaste Recovery rate increase, per the franchise agreement, of 3.80% for FY 25/26.

DISCUSSION
Background
In 2012, the City, participating with other members of the Monterey Regional Waste Management District, issued a competitive request for proposals for waste collection services. In 2014, the City and GreenWaste Recovery Inc. (GWR) entered into a 15-year Franchise Agreement providing GWR with exclusive franchise rights to provide garbage, recycling, and organics collection to residential and commercial sectors within the City.

In accordance with the Franchise Agreement, rates are adjusted annually throughout the 15-year term using various inflationary indices, actual tonnage, and changes in the tipping fees at the Monterey Regional Waste Management District, as defined in section 8.2 and Exhibit E of the franchise agreement. Rate Adjustments are calculated using one of the 4 methodologies:

1. Multi-Index (E1 of franchise agreement)

2. Cost-Based (E2 of franchise agreement)

3. Extraordinary (Section 8.3 of franchise agreement)

4. Mutually agreed upon alternative method
a. Sector-Based Weighted Average Rate Adjustment
Previous Year Rate Increases
Table 1 presents an overview of the yearly rate increases. A narrative with background is provided below.

Table 1: Rate Increases To Date
Fiscal Year Rate
Period Rate Increase Methodology
FY15/16 1 N/A Initial Year of the Agreement
FY16/17 2

3.4% (RES)

4.3% (COM)

5.2% (RO)
Sector-Based Weighted Average
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19 FY17/18 3

4.8% (Res)

4.1% (Com)

2.1% (RO)
Sector-Based Weighted Average
FY18/19 4

7.6% (Res)

6.7% (Com)

7.3% (RO)
Sector-Based Weighted Average
FY19/20 5 0% No annual rate increase applied due to
GWR late submission
FY20/21 6 31.04% Compound of Cost Based on RP5 (20.93%) and Multi-Index in RP6 (8.36%)
FY21/22 7

2.5%

2.54% SB 1383

0.7% increase to the solid waste fees

1.8% for SB 1383 (July, 2021)

2.54% additional SB 1383 increase
FY 22/23 8 1.54% Multi-Index based rate adjustment, uniform for all services
FY 23/24 9 2.77% Multi-Index based rate adjustment, uniform for all services
FY 24/25 10 2.99% Multi-Index based rate adjustment, uniform for all services
FY 25/26 11 3.80% Multi-Index based rate adjustment, uniform for all services
– Key: RES (residential), Com (commercial), RO (roll off container) Fiscal Years 15/16 through 18/19
The rates for Fiscal Year (FY) 15/16 were set upon execution of the Franchise Agreement. For FY16/17, FY17/18 and FY18/19 the City and GWR agreed that a Sector-Based Weighted Average was the best approach to determine adjustments for all rates charged to customers (Residential, Commercial and Roll-off).

Fiscal Year 19/20
For FY19/20, there was no annual rate increase applied. The omission was due to GWR requesting a Cost-Based Rate Adjustment (CBRA). The Franchise Agreement requires that the City Council make a good faith effort to affirm annual rate adjustments. Nevertheless, due to the lengthy CBRA process in FY 19/20, which extended well into FY20/21, no rates were changed.

Fiscal Year 20/21
The FY20/21 rate increase was 31.04%. This rate increase was calculated based on the following factors, which harnessed both a cost-based rate adjustment and index-based rate adjustments:
· The CBRA showed the assumptions for revenue and expenses provided by the previous garbage provider were not accurate for all jurisdictions. The total revenue from all jurisdictions for the first five years of the original franchise agreement was close to initial assumptions. However, some jurisdictions had lower revenue and some higher revenue than what was expected for the expenses included in the rate base. GWR is required to “true-up” revenues and expenses in each individual jurisdiction’s franchise agreement during the CBRA process. Jurisdictions with lower revenue had to raise rates to cover the cost of services provided.
· The franchise agreement allows cost increases at the disposal facilities to be passed through to garbage rates. The only disposal facility utilized by GWR to fulfill its obligation with the City is two miles north of the City of Marina and operated by the Monterey Regional Waste Management District (MRWMD).
· The original franchise agreement included a provision for a $40 per ton credit for recyclable material collected in the blue bins and processed at the Monterey Regional Waste Management District Material Recovery Facility (MRF).

PGCC 6-4-25
20 At that time, changes in the recycling market caused revenue for the sale of recyclable materials from the MRF to be severely impacted. Low contamination requirements resulted in the $40 per ton credit being eliminated in 2020 and a new charge of $40 per ton for recycled material effective July 1, 2020.

The $40 charge is still below the regional average tipping fee for garbage. That rate increase covered two years. It included the impact of transitioning from receiving $40 per ton to paying $40 per ton of recycled material and representing a 4% increase in the previous year’s garbage rates. · In addition to the rate increases based on the services prescribed in the Franchise Agreement, GWR has provided additional services and accommodations, which were not included in the original Franchise Agreement. Providing additional services to meet demand resulted in a significant increase last year.

Fiscal Year 21/22
The FY21/22 rate increase was 2.5%, calculated in accordance with the Franchise Agreement.

The FY21/22 increase was comprised of two components:

1. A 0.7% increase to the solid waste fees. This is the minimum amount to increase the solid waste fees such that the City complies with its franchise agreement with GWR. This amount was determined using the Multi-Index Rate Adjustment method.

2. A 1.8% increase to ensure sufficient funds for the implementation of the new requirements related to California Senate Bill 1383 which take effective, January 1, 2022, which will require collection of organics for all sectors.

In addition to the annual increase of 2.5%, a rate increase of 2.54% took effect January 1, 2022, to cover the additional costs related to SB 1383.

Fiscal Year 22/23
The FY22/23 rate increase was 1.54%, calculated in accordance with the Franchise Agreement. This amount was determined using the Multi-Index Rate Adjustment method, uniform for all services.

Fiscal Year 23/24
The FY23/24 rate increase was 2.77%, calculated in accordance with the Franchise Agreement. This amount was determined using the Multi-Index Rate Adjustment method, uniform for all services.

Fiscal Year 24/25
The FY24/25 rate increase was 2.99%, calculated in accordance with the Franchise Agreement. This amount was determined using the Multi-Index Rate Adjustment method, uniform for all services.

Fiscal Year 25/26
A 3.80% increase for FY 25/26 has been calculated in accordance with the Franchise Agreement using the Multi-Index Rate Adjustment method.

The table below is a representation for a typical increase for residential services.

Pacific Grove Rate Adjustment
Current rates (RP10) New rate (RP11)
Adjustment N/A 3.80%
Residential 32- gallon rate $36.02 $37.39
Residential 64- gallon rate $53.96 $56.01
Impact to Residents
The rate increase of 3.80%, uniformly applied for all services, equals an additional $1.37 per month for 32-gallon and $2.05 per month for 64-gallon container service.

The rate increase is scheduled to go into effect on July 1, 2025.

PGCC 6-4-25
21 The rate increase is scheduled to go into effect on July 1, 2025.

OPTIONS

1. Do nothing. Not recommended as rate increases are prescriptive, and GWR can back charge any delays in rate adjustments to July 1st.

FINANCIAL IMPACT:

The FY 25/26 proposed rate adjustment would not affect City expenses as City waste is collected at no charge under the terms of the Franchise Agreement. The rate adjustment would result in a proportional adjustment of the City’s Franchise and Litter Abatement Fees. The Franchise Fee for FY 25/26 is 16% of gross receipts, and the Litter Abatement Fee is 3.95% of gross receipts.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Proposed Resolution
Rate Period 11 Report
PGCC 6-4-25
22 RESOLUTION NO. 20-xxx

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFIC

GROVE AFFIRMING ACCURACY OF RATES TO BE CHARGED BY
GREENWASTE RECOVERY EFFECTIVE JULY 1, 2025 FOR

COLLECTION OF FRANCHISED SOLID WASTE, RECYCLING, AND

ORGANICS

FINDINGS

1. The City of Pacific Grove (City) entered into a franchise agreement with GreenWaste Recovery, Inc. (GWR) on August 20, 2014 for solid waste, recycling, and organics collection services for the period of August 1, 2015 through July 31, 2030; and,

2. Section 8.3 of the Franchise Agreement describes the process for an adjustment to maximum customer rate, when there is a change in law or a City-directed change in scope and,

3. The application of the formulas required by the Franchise Agreement results in a rate increase of 3.80% for every service level; and,

4. HF&H Consultants has reviewed GWR’s calculation of the rate adjustments and finds the calculations to be accurate and consistent with the methodology and requirements of the franchise agreement; and,

5. This action does not constitute a “Project” as that term is defined under the California Environmental Quality Act (CEQA), CEQA Guidelines Section 15378 as it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE:

1. The Council determines that each of the Findings set forth above is true and correct, and by this reference incorporates those Findings as an integral part of this Resolution.

2. The City Council of the City of Pacific Grove hereby affirms the following rate adjustments are accurate and appropriate to be charged by GWR under the franchise agreement, effective July 1, 2025: 3.80% Index Based Rate Adjustment to all singlefamily residential, commercial solid waste, recycling, and organics rates; and, all rolloff rates.

PGCC 6-4-25
23 3. To the extent that this Resolution results in the imposition of any fees, rates, or charges for services or facilities in connection with the solid waste system providing services within the City’s territorial limits, those charges are adopted pursuant to California Health and Safety Code section 5471.

4. This Resolution shall become effective July 1, 2025, following passage and adoption thereof.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 4th day of June, 2025, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

NICK SMITH, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

BRIAN A. PIERIK, City Attorney
PGCC 6-4-25
24 HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
May 27, 2025
Daniel Gho
Public Works Director / Deputy City Manager
City of Pacific Grove
Sent via email
Subject: Review of GreenWaste Recovery’s 2025-26 Rate Request – Final Report Dear Daniel Gho:

HF&H Consultants, LLC (HF&H) was retained by ReGen Monterey (ReGen), formerly the Monterey Regional Waste Management District, to assist with a review of GreenWaste Recovery’s (GWR) request for an adjustment to customer rates, effective July 1, 2025, submitted to the City of Pacific Grove (City) on April 1, 2025. This report presents our findings and recommendations.

Executive Summary
HF&H’s review of GWR’s Rate Period 11 (RP11) rate request to the City resulted in the following outcomes:
• HF&H has determined a 3.80% increase is appropriate, based on the following components:
• 3.80% inflationary increase in labor-related costs
• 2.80% inflationary increase in vehicle-related costs (excluding fuel) • Fuel rate held flat, as set by ReGen
• 2.80% inflationary increase in other costs
• Depreciation held flat, per the Agreement
• 14.67% increase in net processing costs due to an increase in per-ton rates and tonnage
• 6.41% increase in disposal costs due to an increase in per-ton disposal rate and tonnage
Refer to Figure 1 below for the impact to sample residential rates.

Figure 1 – Example Rate Impact of Adjustment
Current Rates
(RP10) RP11
Adjustment 3.80%
Residential 32-gallon rate $36.02 $37.39
Residential 64-gallon rate $53.96 $56.01
Pacific Grove Rate Adjustment
PGCC 6-4-25
25 Daniel Gho
May 27, 2025

Background
In 2012, the City, participating with other members of ReGen, issued a competitive request for proposals for collection services and entered into the new Agreement with GWR effective July 1, 2015. The Agreement provides for the following, related to the adjustment of rates:
• Rates are to be adjusted annually throughout the term of the Agreement, using various inflationary indices, actual tonnage, and changes in the tipping fees at ReGen, unless either the City or GWR request a Cost-Based Rate Adjustment (CBRA). • The City and GWR may mutually agree upon alternative approaches to structuring rates without amendment to the Agreement (Section 8.2.D).
• During the CBRA review in RP5, a number of issues surrounding the process for setting rates and the resulting rate relationships amongst sectors and materials was identified.

As such, the City and GWR have negotiated an amendment to the prescribed methodology for the CBRA and index adjustments so as to not alter rate relationships between service sectors and material types.
• Through negotiations of the amendment and as a result of the desire to maintain current rate relationships between sectors and service levels, the City and GWR have prescribed a uniform rate adjustment to be applied to all sectors.

Rate Calculation Review
HF&H Scope of Work
HF&H performed this review of the rate request in accordance with Exhibit E1 (for the indexbased rate adjustment). These procedures included:

1. Review of the rate request for completeness and compliance with the procedures contained in Exhibit E1 of the Agreement.

2. Review for mathematical accuracy and logical consistency to determine that the rate request is mathematically correct, that the rows and columns of numbers add down and across as intended, and that the stated assumptions were, in fact, used. Also, to determine that the rate request is internally consistent and that any summary schedules agree to the supporting schedules and worksheets.

3. Verification of the inclusion of the franchise fee calculation in the adjustment.

4. Verification of contract compliance with regard to:

A. The indices used in the adjustment.

B. The tip fees reported for the disposal/processing components of the rates.

C. The use of quarterly reported tonnage data and allocations among agencies. A detailed audit of tonnage and allocations of tonnage reported by GWR was not a part of this scope of work. HF&H discussed GWR’s allocation methodology with them and the methodology appears reasonable and consistent with standard practices within the industry.

PGCC 6-4-25
26 Daniel Gho
May 27, 2025

D. Any changes in governmental fees on the fee component of the rates; and the accurate application of the resultant percentage changes in the various rate components to the rate schedule approved by the City through the Agreement.

Review of Rate Request
RP11 Application
HF&H reviewed the rate application for RP11. The results of the RP11 calculation, based on the methodology of Exhibit E1 of the amendment, are shown in Figure 2 on the following page.

PGCC 6-4-25
27 Daniel Gho
May 27, 2025

Figure 2 - City of Pacific Grove Application of Index-Based Adjustments to RP11 Rate Period Eleven
Annual Cost of Operations
Labor-Related Costs $964,368 1.038 $1,001,014
Vehicle-Related Costs 180,333 1.028 185,382
Fuel Costs 162,426 1 162,426
Other Costs 393,102 1.028 404,108
Direct Depreciation 266,606 N.A. 266,606
Total Allocated Costs - Labor, Vehicle, Fuel & Other 956,191 1.028 982,965 Total Allocated Costs - Depreciation & Start-Up 48,820 N.A. 48,820 Total Annual Cost of Operations $2,971,846 $3,051,322
Profit $356,089 OR=89.3 $365,612
Pass-Through Costs
Disposal Costs $475,014 Tons*Tip Fee $505,463
Curbside Supplemental (9,844) 1.00 (9,844)
Recycling Processing Costs 93,866 Tons*Tip Fee 96,833
Residue Processing Costs Tons*Tip Fee - -
Yard Trimmings Processing Costs 119,662 Tons*Tip Fee 168,865 Food Waste Processing Costs 38,604 Tons*Tip Fee 23,423
C&D Processing Costs Tons*Tip Fee - -
Interest Expense 78,899 N.A. 78,899
Direct Lease Costs - N.A. -
Total Allocated Costs - Lease 62,256 N.A. 62,256
Total Pass-Through Costs $858,457 $925,895
Total Costs before Agency Fees $4,186,393 $4,342,829
Agency Fees/Payments
Franchise Fee $845,222 16.00% $877,338
Litter Abatement Fee 208,664 3.95% 216,593
ReGen MOU Costs 42,357 Actual 44,792
Other Adjustments (as needed from time to time)
Adjustment from Tip Fee Estimates N.A. $1,810
Total Calculated Costs $5,282,636 $5,483,361

3.80%
Rate Period Ten
Adjustment
Factor
PGCC 6-4-25
28 Daniel Gho
May 27, 2025

Review of GWR Costs
There are four major components to GWR’s rate application: (1) calculation and application of the inflationary indices, as prescribed in the Agreement; (2) the disposal and/or processing component; (3) the Agency Fees; and (4) other one-time adjustments.

There are three indices used in the index adjustment: Consumer Price Index (CPI), fuel index, and labor index. The annual percentage change in each index is used to project the coming year’s cost for the line items to which they apply.

HF&H has reviewed, and GWR has confirmed, the accuracy of each of these indices. It is noted that the fuel index remains unchanged, as reported by ReGen management staff.

Review of Disposal/Processing Component
Collected tonnage for Calendar Year 2024 was used for the RP11 review, in accordance with the amendment. The disposal and processing components also consider the tipping fees charged by ReGen to project anticipated disposal and processing costs at ReGen. Figure 3 below outlines the changes in the City’s disposal and processing costs for each material type, based on ReGen’s tip fees effective July 1, 2025, which have been incorporated into our RP11 review.

Figure 3 - Impact of ReGen Tip Fee Changes
Review of Fee Component
HF&H ensured that the fee component of each rate matches the contractual percentage of 16% for franchise fees and 3.95% for litter abatement fees, which are remitted to the City by GWR.

Additionally, rate application review costs and other identified ReGen costs totaling $44,792 were added as a one-time adjustment. These costs cover the rate review, franchise management, staff time, public education and outreach, as well as other expenses related to SB 1383.

Review of Other One-Time Adjustments
HF&H reviewed the actual tip fees implemented at ReGen in RP10 and compared them to the projected tip fees included in the RP10 application. The result of this review was an increase of $1,810 to reflect the difference between the estimated tip fees for Food Waste included in the prior rate adjustment and the actual tip fee approved by ReGen.

Material 2024
Tons
Projected Per
Ton Tip Fee
Rate Period
11 Costs
A B A x B
Solid Waste 6,240 $81.00 $505,463
Recycling 2,362 41.00 96,833
Yard Trimmings 3,446 49.00 168,865
Food Waste 339 69.00 23,423
PGCC 6-4-25
29 Daniel Gho
May 27, 2025

New Rates
Attached hereto is a table of all new rates recommended for RP11 based on the adjustments described in this memo (Attachment A). HF&H recommends adopting these rates by resolution, effective July 1, 2025.
* * * * *
We would like to express our appreciation to GWR staff for their assistance and cooperation in this process. Should you have any questions, please call me at (925) 977-6964 or [email protected].

Sincerely,

HF&H CONSULTANTS, LLC
Rob Hilton Dave Hilton
President Senior Project Manager
PGCC 6-4-25
30 Attachment A
City of Pacific Grove Rates Effective July 1, 2025
Service Level
Curbside 32 Gallon
Curbside 64 Gallon
Curbside 96 Gallon
One Way 32 Gallon
One Way 64 Gallon
One Way 96 Gallon
Backyard 32 Gallon
Backyard 64 Gallon
Backyard 96 Gallon
Notes:

See Exhibit B1 for specific service availability
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 32-Gallon Cart $32.46 $64.62 $96.71 $129.75 $162.48 $197.13 64-Gallon Cart $71.65 $113.62 $155.58 $173.67 $258.39 $343.13 96-Gallon Cart $102.41 $192.33 $282.84 $373.35 $463.85 $517.80 1-Cubic Yard Bin $149.78 $302.20 $455.67 $558.93 $687.37 $815.80 2-Cubic Yard Bin $298.53 $551.58 $804.77 $1,106.96 $1,294.76 $1,663.76 3-Cubic Yard Bin $448.30 $801.10 $1,145.54 $1,581.19 $1,953.03 $2,360.55 4-Cubic Yard Bin $547.91 $1,099.62 $1,577.53 $2,132.77 $2,539.73 $3,287.22 6-Cubic Yard Bin $797.42 $1,573.83 $2,261.14 $3,075.73 $3,872.83 $4,447.58 8-Cubic Yard Bin $1,095.95 $2,125.41 $3,065.90 $4,182.71 $5,167.59 $6,111.34 2-Cubic Yard Compactor $353.13 $660.78 $968.58 n/a n/a n/a 3-Cubic Yard Compactor $530.21 $964.89 $1,391.26 n/a n/a n/a 4-Cubic Yard Compactor $657.10 $1,318.03 $1,905.12 n/a n/a n/a Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 64-Gallon Cart $17.92 $28.40 $38.89 $43.41 $64.60 $85.78 96-Gallon Cart $25.62 $48.09 $70.71 $93.34 $115.95 $129.45 1-Cubic Yard Bin $37.44 $75.55 $113.92 $139.74 $171.84 $203.95 2-Cubic Yard Bin $74.63 $137.90 $201.19 $276.75 $323.68 $415.95 3-Cubic Yard Bin $112.08 $200.27 $286.38 $395.30 $488.26 $590.14 4-Cubic Yard Bin $136.97 $274.90 $394.38 $533.19 $634.93 $821.81 6-Cubic Yard Bin $199.36 $393.46 $565.28 $768.94 $968.21 $1,111.89 8-Cubic Yard Bin $273.98 $531.35 $766.48 $1,045.68 $1,291.90 $1,527.84 2-Cubic Yard Compactor $59.68 $108.01 $156.37 n/a n/a n/a 3-Cubic Yard Compactor $89.67 $155.46 $219.15 n/a n/a n/a 4-Cubic Yard Compactor $107.10 $215.15 $304.74 n/a n/a n/a Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 64-Gallon Cart $53.74 $85.21 $116.68 $130.24 $193.80 $257.35 96-Gallon Cart $76.82 $144.26 $212.14 $280.01 $347.90 $388.36 1-Cubic Yard Bin $112.33 $226.65 $341.74 $419.21 $515.53 $611.85 2-Cubic Yard Bin $223.89 $413.68 $603.57 $830.23 $971.06 $1,247.82 Residential Solid Waste Collection Rates
Solid Waste Recycling Organics
$37.39 Included Included
$56.01 Included Included
$74.50 Included Included
$60.99 Included Included
$79.62 Included Included
$98.10 Included Included
$68.85 Included Included
Commercial/Multi-Family Solid Waste Collection Rates
Frequency
Commercial/Multi-Family Recycling Collection Rates
Frequency
Commercial/Multi-Family Food Waste Collection Rates
$87.48 Included Included
$105.96 Included Included
Frequency

PGCC 6-4-25
31 Attachment A
City of Pacific Grove Rates Effective July 1, 2025
Service Level 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week 64-Gallon Cart $53.74 $85.21 $116.68 $130.24 $193.80 $257.35 96-Gallon Cart $76.82 $144.26 $212.14 $280.01 $347.90 $388.36 1-Cubic Yard Bin $112.33 $226.65 $341.74 $419.21 $515.53 $611.85 2-Cubic Yard Bin $223.89 $413.68 $603.57 $830.23 $971.06 $1,247.82 3-Cubic Yard Bin $336.24 $600.83 $859.16 $1,185.89 $1,464.78 n/a 4-Cubic Yard Bin $410.92 $824.72 $1,183.12 $1,599.56 $1,904.81 n/a 6-Cubic Yard Bin $598.06 $1,180.37 $1,695.86 $2,306.81 $2,904.64 n/a 8-Cubic Yard Bin $821.95 $1,594.06 $2,299.42 $3,137.02 $3,875.68 n/a Service Level MSW REC YT C&D
10 YD $446.64 $446.64 $446.64 $446.64
20 YD $621.00 $621.00 $621.00 $621.00
30 YD $795.38 $795.38 $795.38 $795.38
40 YD $969.74 $969.74 $969.74 $969.74
Per Ton $101.19 $51.22 $61.21 $101.19
Service Sector Charge Per Event
Cart Rental - All Sizes RES
32 Gallon Cart Rental - Recycle RES
Cart Replacement RES
Re-Delivery or Re-Start RES
Cart Cleaning RES
Non-Scheduled Collection RES
Cardboard Sticker COM
Difficult to Service Cart COM
Difficult to Service Bin COM
Locking Bin COM
Cart Replacement COM
Cart Cleaning COM
Bin Swap - Cleaning or Repainting COM
Bulky - Recyclable RES/COM
Bulky - Non Recyclable RES/COM
Bulky - Event RES/MFD
Covered Box RO
Driver Time per Hour RO
Dry Run or Relocation RO
Extra Days RO
*Note: All rates charged monthly unless stated otherwise $14.17
$1.71
$5.15
$85.93
$5.15
$5.15
$103.11
$42.96
$42.96
$32.65
Additional Service Rates
Commercial/Multi-Family Yard Trimmings Collection Rates Frequency
Roll-Off Collection Rates (Per Pull)
Material
$103.11
$128.90
$42.96
$128.90
$34.38
$42.96
$51.56
$128.90
$189.05
$42.96

PGCC 6-4-25
32 Agenda No. 7 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Joseph Sidor, Contract Planner
MEETING DATE: June 04, 2025
SUBJECT: Local Coastal Program Amendment - Coastal Hazards CEQA: Statutory Exemption, CEQA Guidelines Section 15265, Adoption of Coastal Plans and Programs

RECOMMENDATION
Hold a second reading and adopt an Ordinance amending Pacific Grove Municipal Code Section 23.90.140(b); and direct City Staff to transmit the amendments to the California Coastal Commission for confirmation by the Coastal Commission at their next regular meeting and incorporation into the City’s Local Coastal Program.

DISCUSSION
City Council Action on May 21, 2025
On May 21, 2025, the City Council acknowledged receipt of the California Coastal Commission resolution approving the City of Pacific Grove Local Coastal Program Amendment Number LCP-3-PGR-24-0065-1 (Coastal Hazards Update); discussed the proposed City Council resolution amending the text, policies, and figures of the Land Use Plan (LUP), including the addition of a definition for Critical Public Infrastructure (LUP Section 1.10), updating the data and information sources (LUP Section 2.1.1), updating LUP Figure 3 (LUP Section 2.1.2), and amending Policy HAZ-12 (LUP Section 2.1.4); discussed the proposed ordinance amending the Implementation Plan (IP) of the Pacific Grove Municipal Code (PGMC Title 23, Chapter 90), including revising the text of IP section 23.90.140(b); by motion on a 7 - 0 vote found that adoption of the proposed resolution and ordinance is statutorily exempt from CEQA pursuant to CEQA Guidelines section 15265; by motion on a 7 - 0 vote approved the Resolution to Amend the Local Coastal Program, including the Text, Policies, and Figures of the Land Use Plan (LUP sections 1.10, 2.1.1, 2.1.2, and 2.1.4) and Text of the Implementation Plan (Pacific Grove Municipal Code, Chapter 23.90 (Section 23.90.140(b)); by motion on a 7 - 0 vote requested the City Attorney read the title of the proposed ordinance amending Municipal Code Section 23.90.140(b) to allow for completion of an initial assessment by City Staff, waived further reading of the ordinance, introduced and held the first reading of the proposed ordinance amending Municipal Code Section 23.90.140(b) to allow for completion of an initial assessment by City Staff, and directed a summary of a proposed ordinance be published as approved by the City Attorney.

The City Council made no changes to the proposed resolution or ordinance, and there were no changes between the first and second readings of this Ordinance. The City Clerk caused a summary of the ordinance to be published on May 29, 2025.

PGCC 6-4-25
33 Following the second reading and formal adoption of the certified amendments, City Staff will transmit the amendments to the Coastal Commission for confirmation at their next regularly scheduled meeting.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
In reviewing this action, the City has followed the CEQA statute adopted by the State of California as published in the California Public Resources Code, Division 13, §21000, et seq., and the California Code of Regulations, Title 14, §15000, et seq. (i.e., CEQA Guidelines). Pursuant to CEQA Guidelines Section 15265 (Adoption of Coastal Plans and Programs), an amendment to a Local Coastal Program is statutorily exempt. Per Section 15265, CEQA does not apply to activities and approvals pursuant to the California Coastal Act by any local government necessary for the preparation and adoption of a local coastal program. This section shifts the burden of CEQA compliance from the local agency to the Coastal Commission. Pursuant to Public Resources Code Sections 21080.5 and 21080.9, and CEQA Guidelines Section 15251(f), the Coastal Commission is identified as a certified regulatory program which meets the requirements of Public Resources Code involving the preparation, approval, and certification of local coastal programs. As such, the Coastal Commission report prepared for the LCP Amendment qualifies as a functional equivalent environmental review document with regard to CEQA.

The analysis in the report (Coastal Hazards Modeling Technical Methods and Results) prepared for the LCP Amendment provided the Coastal Commission with the technical background information they required to analyze the proposed LCP Amendment. Therefore, the City is not required to take further CEQA action on the proposed LCP Amendment.

OPTIONS
Direct staff to take alternative action.

FINANCIAL IMPACT:

There is no financial impact resulting as a result of this action.

FOCUSED PRIORITY AREA: Infrastructure
Attachments
Proposed Ordinance
PGCC 6-4-25
34 ORDINANCE NO. 25 - ___

AN ORDINANCE OF THE CITY OF PACIFIC GROVE AMENDING THE TEXT OF SECTION 23.90.140 OF THE PACIFIC GROVE MUNICIPAL CODE (PART OF THE IMPLEMENTATION PLAN OF THE CITY’S LOCAL COASTAL PROGRAM)

RECITALS
WHEREAS, Section 30500 of the Public Resources Code requires each County and City to prepare a Local Coastal Program (“LCP”) for that portion of the coastal zone within its jurisdiction; and
WHEREAS, on January 15, 2020, the City of Pacific Grove (“City”) adopted an LCP (City Council Resolution No. 20-001), comprised of a Land Use Plan (“LUP”) and Implementation Plan (“IP”), pursuant to the California Coastal Act and consistent with Section 30512 of the Public Resources Code; and
WHEREAS, on March 11, 2020, the California Coastal Commission (“Coastal Commission”) acknowledged certification of the City’s LCP; and
WHEREAS, the LCP is final, adopted and certified and took effect on the certification date of March 11, 2020; and
WHEREAS, the City determined it appropriate to codify the IP as Chapter 23.90 of the Pacific Grove Municipal Code (PGMC), and did so via the adoption of Council Ordinance No. 20-023; and WHEREAS, Section 30514 of the Public Resources Code and the PGMC Chapter 23.84 provide for amendments to adopted LCP’s; and
WHEREAS, on October 10, 2024, the Planning Commission of the City of Pacific Grove (“Planning Commission”) considered, at a duly noticed public hearing, the initiation of an LCP amendment, as required by PGMC Section 23.84.020, to amend the text, policies, and figures of the LUP (LUP Sections 1.10, 2.1.1, 2.1.2, and 2.1.4) and text of the IP (PGMC Section 23.90.140(b)), and the Planning Commission voted to recommend the City Council adopt the proposed LCP amendment (Planning Commission Resolution Nos. 2024-004 and 2024-005); and WHEREAS, on November 6, 2024, the City Council of the City of Pacific Grove (“City Council”) considered, at a duly noticed public hearing, the proposed LCP amendment to amend the text, policies, and figures of the LUP (LUP Sections 1.10, 2.1.1, 2.1.2, and 2.1.4) and text of the IP (PGMC Section 23.90.140(b)); and
WHEREAS, notice of the public hearing before the City Council was published in the Monterey County Weekly and posted at City Hall on October 24, 2024; and WHEREAS, on April 11, 2025, the Coastal Commission considered certification of the proposed LCP amendments. The Coastal Commission unanimously approved and certified the amendments to the Land Use Plan and Implementation Plan (City of Pacific Grove LCP Amendment Number LCP-3-PGR-24-0065-1 (Coastal Hazards)) as submitted by the City (i.e., with no modifications); and
WHEREAS, on May 21, 2025, the City Council held a duly noticed public hearing to consider a first reading of the resolution and ordinance to adopt the proposed amendments to the text, policies, and figures of the LUP and the text of the IP; and PGCC 6-4-25
35 WHEREAS, notice of the public hearing before the City Council was published in the Monterey County Weekly and posted at City Hall on May 8, 2025; and WHEREAS, on June 4, 2025, the City Council held a second reading of the resolution and ordinance to adopt the proposed amendments to the text, policies, and figures of the LUP and the text of the IP; and
WHEREAS, the City Clerk caused a summary of the ordinance to be published in the Monterey County Weekly on May 29, 2025; and
WHEREAS, in considering the proposed LCP Amendment, the City Council considered the Planning Commission, City Council, and Coastal Commission resolutions, agenda reports, written and oral testimony, and administrative record as a whole; and WHEREAS, pursuant to CEQA Guidelines Section 15265 (Adoption of Coastal Plans and Programs), an amendment to a Local Coastal Program is statutorily exempt; and WHEREAS, this amendment is intended to be carried out in a manner fully in conformity with the California Coastal Act (Public Resources Code Sections 30512, 30513, and 30519).

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:

SECTION 1. The foregoing recitals are adopted as findings of the City Council as though set forth fully herein.

SECTION 2. The City Council makes the following findings pursuant to PGMC 23.84.060:
1) The proposed amendment is consistent with the general plan and the certified local coastal program;
2) The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the city; and
3) The proposed amendment is internally consistent with other applicable provisions of the Zoning Ordinance.

SECTION 3. The Pacific Grove Municipal Code is amended as follows:

Chapter 23.90
Local Coastal Program Implementation Plan
Section 23.90.140 Coastal Hazards
(a) In order to protect life, property, and coastal resources from coastal hazards, and to maintain consistency with the LCP’s land use plan (LUP), development shall conform to all applicable land use plan coastal hazards policies and the following requirements:
(b) Applications for All Development Potentially Subject to Coastal Hazards. (1) Initial Coastal Hazards Assessment. City staff The applicant shall conduct submit an initial site assessment screening to determine whether the site may be subject to coastal hazards over its lifetime (generally over at least the next 75 years). The initial site assessment shall be based on readily available information and the most current and recently adopted available science (e.g., State of California Sea Level Rise Guidance).

The screening shall include a review of CDPs issued or applied for at the subject site and immediate vicinity, technical reports, resource maps, aerial photographs, site PGCC 6-4-25
36 inspection, current coastal hazard GIS layers, and the LCP’s coastal hazard map in LUP Figure 3. Maps can be used as a resource for identification of coastal hazard areas; however, absence of mapping cannot alone be considered absence of hazard, and local site conditions must be examined at the time of coastal permit application using the best available science.
(2) Coastal Hazards Report. Where the initial site assessment reveals that the proposed development is located on or seaward of Ocean View Boulevard or Sunset Drive, mapped within LUP Figure 3, and/or otherwise may be subject to coastal hazards over the next 75 years, a site-specific coastal hazards report (report) shall be prepared. The report shall at a minimum provide for:
….

SECTION 4. The City Manager is directed to execute all documents and to perform all other necessary City acts to implement effect this Ordinance.

SECTION 5. Severability. If any provision, section, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof, or its application to other persons or circumstances. The City Council hereby declares that it would have passed and adopted each provision, section, paragraph, subparagraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, paragraphs, subparagraphs, sentences, clauses or phrases, or the application thereof to any person or circumstance, be declared invalid or unconstitutional.

SECTION 6. In accord with Article 15 of the City Charter, this ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof and following certification by the California Coastal Commission.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE on this 4th day of June, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
________________________
NICK SMITH, Mayor
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37 ATTEST:
_________________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_________________________________
BRIAN PIERIK, City Attorney
PGCC 6-4-25
38 Agenda No. 8 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Joseph Sidor, Contract Planner
MEETING DATE: June 04, 2025
SUBJECT: Housing Element Monthly Status Update
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Receive the report.

2. Alternatively, discuss and take other action related to this item.

DISCUSSION
On December 20, 2023, City Council approved the first amendment to the contract with Rincon Consultants, initiating the preparation of the Housing Element Update (HEU), along with related General Plan Amendments, Zoning Amendments, and Environmental Impact Report (EIR).

Subsequently, City Staff and Rincon Consultants continued/commenced work and provided the sixteenth monthly progress report update to Council on May 7, 2025. Since then, the following tasks have been undertaken:

May 1, 2025: The Housing Element Team met to discuss next steps for the Housing Element Update, including public review and submittal of the 3rd Draft Housing Element to HCD, and the Program Environmental Impact Report (EIR).

May 2, 2025: The Housing Element Team met to discuss the administrative draft EIR sections.

May 2, 2025: Rincon provided the revised 3rd Draft Housing Element responding to HCD’s February 18, 2025, comment letter to City Staff for public review.

May 5, 2025: City Staff updated the Housing Element webpage with new information, including the posting of the 3rd Draft Housing Element for 7-day public review.

May 8, 2025: The Housing Element Team met to discuss next steps for the Housing Element Update, including public review and submittal of the 3rd Draft Housing Element to HCD, and the Program Environmental Impact Report (EIR).

May 14, 2025: City Staff and Rincon met to discuss preparation for the Draft EIR Workshop at the Planning Commission meeting on June 12, 2025.

PGCC 6-4-25
39 May 15, 2025: City Staff met to discuss the zoning ordinance amendments.

May 19, 2025: City Staff provided Rincon with consolidated comments for Batch 2 of the administrative draft EIR sections.

May 20, 2025: City Staff posted the public comment from the 7-day public review period on the Housing Element webpage.

May 21, 2025: The 3rd Draft Housing Element was formally submitted to HCD, and City Staff updated the Housing Element webpage.

May 22, 2025: City Staff met to discuss the zoning ordinance amendments.

May 27, 2025: The Housing Element Team met to discuss the administrative draft EIR sections.

May 29, 2025: The Housing Element Team met to discuss next steps for the Housing Element Update, including the Program Environmental Impact Report (EIR).

The Housing Element Team includes City Planning, Housing, and City Manager staff, City legal representation, and Rincon/subconsultant staff. Staff will provide a monthly status update to the Council throughout the process, leading to an adopted and certified Housing Element.

For more information, please visit the Housing Element
webpage: www.cityofpacificgrove.org/HousingElement

OPTIONS
N/A - This is information only.

FINANCIAL IMPACT:

There is no fiscal impact associated with receiving this report.

FOCUSED PRIORITY AREA: Community Development
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40 Agenda No. 9 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: George Fuerst, Environmental Program Manager
MEETING DATE: June 04, 2025
SUBJECT: Monterey Regional Waste Management District MOU CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Authorize a Memorandum of Understanding (MOU) between Monterey Regional Waste Management District and the City regarding assistance with California Senate Bill 1383 compliance.

DISCUSSION
The Monterey Regional Waste Management District's (District) seven (7) partner agencies who utilize GreenWaste Recovery (GWR), the County of Monterey and the City of Monterey have been working together since 2020 to implement Senate Bill 1383 “Short-Lived Climate Pollutants (SLCP): Organic Waste Methane Emissions Reductions”.

This coordination is facilitated by the District’s Technical Advisory Committee (TAC) comprised of staff from each Member Agency, the three haulers in the District’s service area, and MRWMD. The Member Agencies determined that the District has the expertise and resources necessary to implement shared activities on the Member Agencies’ behalf and requested that the District incur costs to provide these activities. The Member Agencies have agreed to reimburse the District for proportionate shares of certain designated annual costs incurred by the District for these activities under a Memorandum of Understanding (MOU) between the Monterey Regional Waste Management District and its Member Agencies Regarding Assistance with Compliance with California Senate Bill 1383.

In October 2021, June 2022, August 2023, and again in June 2024, City Council approved an MOU which provides the framework for how this group will move forward regarding workload division and cost allocation. The District took the lead on many of the actions needed to implement SB 1383 in coordination with the District’s TAC.

The approved MOU currently contains Exhibits A, B, C, & D detailing annual implementation costs for each fiscal year. Exhibits A & B have been amended for FY 25/26, Exhibits C & D are unchanged.

Exhibit A - Detailed Activities and Costs: Contains the scope of work, and associated costs related to general SB 1383 activities (enacted June 2021, updated annually).

Exhibit B - Member Agencies’ Annual Proportionate Shares and Costs: Allocation of such costs to the Member Agencies (enacted June 2021, updated annually).

Exhibit C - Member Agencies’ Estimated Allocation of CalRecycle Local Assistance Grant Program Funding: Details proposed programs funded by the CalRecycle Local Assistance Grant Program (enacted February 2022, to be updated if future funding becomes available).

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41 Exhibit D – Member Agencies’ Estimated Procurement Requirements of Organic Material: Exhibit D details the organic materials (compost or mulch) procurement requirements and costs for each Member Agency (enacted June 2022, to be updated in 2026).

Authorization of this MOU will update exhibits A and B to reflect costs for the 25/26 fiscal year.

The MOU contains no other substantial changes from the version approved by this body in October 2021, June 2022, August 2023, and June 2024.

OPTIONS
Do not approve MOU. Note: Failure to approve the MOU will result in an accumulation of fees to the City of Pacific Grove from the Monterey Regional Waste Management District, as well as the potential for non-compliance with SB1383.

FINANCIAL IMPACT:

The total FY24/25 costs incurred by the City as a result of this MOU are $44,792, funded by fees collected by the City as part of the approved GreenWaste Hauler Franchise agreement.

FOCUSED PRIORITY AREA: Environmental Stewardship
Attachments
MRWMD MOU FY25/26
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42 1

MEMORANDUM OF UNDERSTANDING

BETWEEN THE MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT AND ITS

MEMBER AGENCIES REGARDING ASSISTANCE WITH COMPLIANCE WITH CALIFORNIA SENATE BILL 1383
This Memorandum of Understanding (“MOU”) is made and entered into as of the date of the signatures set forth below by and between the MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT (“District”, “MRWMD”), a California Garbage and Refuse Disposal District, and its member agencies including the cities of CARMEL-BY-THE-SEA, DEL REY OAKS, MARINA, MONTEREY, PACIFIC GROVE, SAND CITY, and SEASIDE; THE PEBBLE BEACH COMMUNITY SERVICES DISTRICT; and THE COUNTY OF MONTEREY (“Member Agencies”). Collectively these entities shall be known herein as “Parties” or individually as a “Party.”
Recitals
A. The State of California has passed legislation, known as Senate Bill 1383, California’s Short-Lived Climate Pollutants regulation. The regulation will have significant impact on each Member Agency, with the goal of reducing organic material being landfilled by 75% by 2025, compared to a 2014 basis. The legislation mandates that Member Agencies undertake certain activities around the handling of organic waste materials collected within their jurisdictions. The regulation also requires 20% recovery of edible food by 2025 to direct it to a beneficial use and thus prevent it from entering the waste stream. Regulations take effect, and local program implementation will begin, on January 1, 2022.

B. The Member Agencies have determined that it is in their best interest to coordinate their activities related to this legislation. This coordination is being facilitated by the District’s Technical Advisory Committee (TAC) comprised of staff from each Member Agency, the three Haulers in the District service area (Haulers), Salinas Valley Recycles (SVR) and MRWMD.

C. The Member Agencies have further determined that the District has the expertise and resources necessary to implement some of these activities on the Member Agencies’ behalf and have now requested that the District incur costs to provide these activities.

D. The Member Agencies have agreed to reimburse the District for proportionate shares of certain designated annual costs incurred by the District for these activities.

E. The form and content of this MOU have been presented to the TAC, and the TAC has recommended it for approval by the Parties
NOW THEREFORE, in consideration of the mutual benefits to be derived by the District and the Member Agencies, and of the promises contained in this MOU, the Parties agree as PGCC 6-4-25
43 2
follows:

Section 1. Recitals: The recitals set forth above are incorporated into this MOU.

Section 2. Purpose: The purpose of this MOU is to provide a structure for the Member Agencies to reimburse the District for SB 1383 related activities it performs on behalf of the Member Agencies.

Section 3. Voluntary: This MOU is voluntarily entered into by the Parties for the purpose of facilitating the implementation of SB 1383.

Section 4. Term: This MOU shall become effective on the last day of its execution by a Party and shall remain in effect until terminated by the Parties.

Section 5. Scope of Work, Costs & Cost Sharing: The scope of work, and associated costs, are set out in Exhibit A, entitled Detailed Activities and Costs, attached hereto and incorporated herein. Allocation of such costs to the Member Agencies is set out in Exhibit B, entitled Member Agencies’ Annual Proportionate Shares and Costs, attached hereto and incorporated herein. Exhibit C outlines estimated individual Member Agencies’ allocations related to the Department of Resources Recycling and Recovery (CalRecycle) SB 1383 Local Assistance Grant Program (OWR1: 2021-22), attached hereto and incorporated herein. Exhibit D defines the estimated annual procurement requirements of organic material and estimated cost per ton of compost for each Member Agency, attached hereto and incorporated herein.

No later than March 1 of each year, and at such other times as directed by the Parties, the TAC shall meet to consider and, if deemed necessary, modify Exhibits A, B, C, and/or D subject to direction from the governing bodies of each Member Agency to its TAC representative.

Section 6. The District Agrees:
(a) District staff will manage activities as identified in Exhibit A, C, and D which activities include contracting with third party vendors when reasonably necessary and paying those vendors for contracted costs.
(b) Two times per year, on dates to be determined by the TAC, District will invoice Member Agencies for each Member Agency’s proportionate share of costs as shown in Exhibit B with each invoice to be fifty percent (50%) of the Member Agency’s share of costs. (c) Upon award of CalRecycle SB 1383 Local Assistance Grant Program funds, the District will invoice Member Agencies for their full allocation of grant funds as shown in Exhibit C. Four times during the grant term, aligned with dates identified by CalRecycle grant Terms & Conditions, the District shall report to Member Agencies a summary of actual grant expenditures and progress toward grant tasks to date.

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(d) District will maintain an accounting of activities and expenses and provide reconciliation of payments annually. Material differences between estimated costs and actual incurred costs will result in either: 1) an adjustment made to the final annual payment for each Member Agency, or 2) such cost difference shall be incorporated into the subsequent year cost allocation.
(e) In year one only, in recognition of expected continuation of improved recycling revenues for the District from recyclable material sales, the District will off-set $140,000 of the costs identified in Exhibit A. This off-set is reflected in the cost allocations set out in Exhibit B for FY 2021-22.

Section 7. The Member Agencies Agree:
(a) To reimburse the District for all expenses incurred by the District under this MOU in accordance with each Member Agency’s proportionate share as shown on Exhibit B, C, and D. (b) To make a full-faith effort to cooperate with one another and with the District to achieve the purposes of this MOU by providing information, reviewing information in a timely manner, and informing their respective administration and governing bodies.

Section 8. Termination. Any Party may terminate its participation in this MOU upon giving written notice to the District no later than April 1 of any calendar year during the term of this MOU. Within ten days following a Party’s termination date, such party shall pay District all charges then due and payable and shall pay when determined any additional charges that shall later come due under the MOU, subject to the limits set out in Exhibits A, B, C, and D.

Section 9. General Provisions.
(a) This MOU is binding and for the benefit of the respective successors, heirs, and assigns of each Party and the District; provided however, no Party may assign its respective rights or obligations under this MOU without the prior written consent of the District. (b) This MOU is governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California.
(c) If any provision of this MOU is determined by any court to be invalid, illegal, or unenforceable to any extent, then the remainder of this MOU will not be affected, and this MOU will be construed as if the invalid, illegal, or unenforceable provision had never been contained in this MOU.
(d) Waiver by the District or any Party to this MOU of any term, condition, or covenant of this MOU will not constitute a waiver of any other term, condition, or covenant.

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45 4
Waiver by the District or any Party of any breach of the provisions of this MOU will not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this MOU.
(e) This MOU may be executed in any number of counterparts, each of which is an original but all of which taken together will constitute one and the same instrument, provided, however, that such counterparts have been delivered to all parties to this MOU. (f) All parties acknowledge they have been represented, or have had the opportunity to be represented, by counsel in the preparation and negotiation of this MOU. Accordingly, this MOU will be construed according to its fair language. Any ambiguities will be resolved in a collaborative manner by the District and the Parties and must be rectified by amending this MOU.

IN WITNESS WHEREOF, the District and the Parties have caused this MOU to be executed by their duly authorized representatives as of the date of their respective signatures.

MONTEREY REGIONAL WASTE MANAGEMENT DISTRICT
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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46 5

CITY OF CARMEL-BY-THE-SEA
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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47 6

CITY OF DEL REY OAKS
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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48 7

CITY OF MARINA
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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49 8

CITY OF MONTEREY
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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50 9

CITY OF PACIFIC GROVE
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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51 10

SAND CITY
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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CITY OF SEASIDE
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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53 12

PEBBLE BEACH COMMUNITY SERVICES DISTRICT
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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54 13

COUNTY OF MONTEREY
By: ________________________ DATE: _______________
APPROVED AS TO FORM:
_______________________
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55 1

EXHBIT A

DETAILED ACTIVITIES & COSTS
FY 2025-2026
Scope of Work
The activities related to the implementation of SB 1383 may include contracting and policy development; public education; materials purchasing and distribution; reporting; contamination monitoring; edible food waste recovery; enforcement; procurement; organics processing; rate setting; cost monitoring; and any other related activities the Parties choose to address.

The District will take the lead producing public education campaigns in concert with the already provided Hauler and/or Member Agency resources. The Member Agencies will be responsible for production and mailing fees associated with outreach. The District will also contract with a vendor to administer contamination monitoring in the form of curbside lid flipping. The District will also provide CalRecycle reporting services to the Member Agencies. In addition, funds will be allocated to food recovery organizations for procurement of refrigerated holding facilities or transport vehicles to support edible food recovery efforts.

Costs
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56 1

EXHBIT B
MEMBER AGENCIES’ ANNUAL PROPORTIONATE SHARES & COSTS*
FY 2025-2026
*Member Agencies’ proportionate costs subject to adjustment annually in accordance with any change in scope and total costs.

Member agencies will be invoiced an annual amount not to exceed column below titled “with minimums.”
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EXHIBIT C
MEMBER AGENCIES’ ESTIMATED ALLOCATION OF CALRECYCLE LOCAL ASSISTANCE GRANT PROGRAM FUNDING (OWR1: 2021-22)**
The Member Agencies of Carmel, Del Rey Oaks, Marina, Monterey, Sand City, Seaside, Pacific Grove, and the Pebble Beach Community Services District (PBCSD) join the Local Assistance Grant Program as a regional collaborative project for the implementation of regulation requirements associated with SB 1383, in coordination with other jurisdictions of the Monterey County region to maximize project impact and cost-effectiveness across the countywide area.

This regional grant-funded project will be coordinated through the two local waste management governmental agencies within Monterey County, Monterey Regional Waste Management (MRWMD), and Salinas Valley Solid Waste Authority (SVSWA).

The Member Agencies, along with each of the MRWMD and SVSWA member agencies are applying individually to this grant program using a unified regional project design, budget and implementation approach. All participating jurisdictions’ individual grant funding will be pooled together and expended in a cooperative manner by their agencies’ respective waste districts, MRWMD and SVSWA. The County of Monterey is applying separately and will manage its budget and project implementation independently, in coordination with broader regional planning efforts.

Based on current regional needs and findings to date related to SB 1383 in Monterey County, the following four major components will comprise the principal focus areas of program expenditures under the proposed regional project approach:
1) Grant Management, Tracking & Reporting
2) Agency Procurement Support
3) Edible Food Recovery Implementation and Capacity Building 4) Organics & Edible Food Recovery Education, Outreach and Technical Assistance Each element will be informed by regional coordination through the established MRWMD and SVSWA Technical Advisory Committee forums, Capacity Planning Assessments and related studies completed or in process throughout the region, and new data and information obtained through program implementation trials, stakeholder feedback and best practices as identified.

All expenditures will be incurred jointly, facilitated through each respective waste agency, and tracked and reported by each jurisdiction, based on the percentage of grant funds received by each agency compared to the full funding received collectively by all participating member agencies. CalRecycle, based on per capita calculations, using the Department of Finance’s January 2021 population statistics, estimates jurisdictions’ proportionate grant allocations. A summary of individual and collective agency grant allocations is presented below as Table 1.

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Table 1. Thirteen Agency Collaborative Approach Budget Summary ** Working in coordination with the designated CalRecycle grant manager or other agency representatives as appropriate, the region may adjust these proposed expenditure areas, amounts, or priorities, consistent with grant expenditure eligibility requirements, as needed during the course of the grant term based on the needs of the region.

Agencies Estimated
Funding
% of District
Subtotal
% of Region
Total
Waste
District
Carmel-by-the-Sea $20,000 9% 4% MRWMD
Del Rey Oaks $20,000 9% 4% MRWMD
Marina $29,771 14% 6% MRWMD
Monterey $38,247 18% 7% MRWMD
Pacific Grove $21,398 10% 4% MRWMD
Sand City $20,000 9% 4% MRWMD
Seaside $43,151 20% 8% MRWMD
Pebble Beach Community
Services District
$20,000 9% 4% MRWMD
Subtotal (MRWMD): $212,566 100% 41%
Gonzales $20,000 6% 4% SVSWA
Greenfield $25,157 8% 5% SVSWA
King City $20,665 7% 4% SVSWA
Salinas $211,143 68% 40% SVSWA
Soledad $33,095 11% 6% SVSWA
Subtotal (SVSWA): $310,060 100% 59%
TOTAL (13 Agency Regional
Approach): $522,626 100%
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EXHIBIT D
MEMBER AGENCIES’ ESTIMATED PROCURMENT REQUIRMENTS

OF ORGANIC MATERIAL
The list below indicates the annual recovered organic waste product procurement targets for each jurisdiction (city, county, or city and county) that will be in effect from January 1, 2022, through December 31, 2026 per CalRecycle.

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60 Agenda No. 9 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: June 04, 2025
SUBJECT: FY26/27 Extension with Topes Tree Service Inc. for Tree Maintenance Services in Public Right of Way
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Authorize FY26/27 extension with Topes Tree Service Inc. to provide Tree Maintenance Services for trees in the public right-of-way and on City-owned properties in an amount not to exceed $250,000.

2. Alternatively, take other action related to this item

DISCUSSION
The City of Pacific Grove Public Works Department is responsible for maintaining all trees on public land and within the City’s right-of-way. To effectively manage this task, including vertical clearance standards for all city roadways, the city has historically utilized a tree service contractor to supplement staff.

The city has used the model of harnessing an on-call tree service contractor agreement to complete essential tree maintenance since 2014.

At the August 7, 2024 meeting, the City Council authorized an agreement with Topes Tree Service Inc. to provide Tree Maintenance Services for trees in the public right-of-way and on City-owned properties in an amount not-to-exceed $250,000 per fiscal year, with up to four (4) annual, one-year extensions by mutual letter, subject to the Council’s approval each year. The full report is linked for reference.

This agenda report is being brought forward to authorize the first of the four (4) annual extension. In accordance with the agreement, this action must be authorized by the Council each year.

THE IMPORTANCE OF A TREE SERVICE CONTRACTOR
The City’s tree service contractor plays an essential role in maintaining the health and safety of Pacific Grove’s trees. They perform critical maintenance tasks for all trees within public spaces, City facilities, and the City right of way under the guidance and supervision of the City Forester.

Key Responsibilities:
• Pruning & Removal: The contractor performs routine, priority, and emergency pruning and tree removal, including clearing street obstructions.
• Additional Services: Other services may include tree planting, staking, pest control, fertilization, and maintenance or removal of trees as needed.
• Emergency Response: The contractor also supports emergency response efforts, helping to remove or stabilize hazardous trees and ensuring public safety by addressing tree-related hazards promptly.

Having a skilled contractor for tree maintenance helps our Forester and staff manage the demanding task of PGCC 6-4-25
61 tree care in accordance with the Pacific Grove Municipal Code Title 12, Trees and the Urban Forest, and the City’s Urban Forestry Standards. This partnership ensures our urban forest remains healthy, attractive, and safe.

TIMING
This extension will not be authorized until the FY25/26 budget is approved.

OPTIONS

1. Authorize the extension

2. Do not authorize the extension. Failure to authorize the extension would result in a lapse of service while staff issued a new RFP. This would likely result in higher service costs, which would equate to the $250,000 not-to-exceed amount covering less work
FINANCIAL IMPACT:

Sufficient funding has been proposed in the FY25/26 Public Works Department Operating Budget to accommodate the agreement extension.

FOCUSED PRIORITY AREA: Not Applicable.

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62 Agenda No. 9 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Gho, Public Works Director/Deputy City Manager MEETING DATE: June 04, 2025
SUBJECT: Emergency removal and replacement of a manhole at Beach Street and Del Monte CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities

RECOMMENDATION

1. Authorize the execution of an agreement with Monterey Peninsula Engineering for the emergency removal and replacement of a manhole at Beach Street and Del Monte Boulevard for a cost not to exceed $49,850 plus a 15% contingency.

2. Alternatively, discuss and take other action related to this item.

DISCUSSION
The City of Pacific Grove owns and operates the Sewer Collection System, which consist of approximately 58 miles of pipelines, 900 manholes, and 7 pump stations. To maintain this vital infrastructure, routine maintenance is performed on the system throughout the year. In addition to regular maintenance, the City completes proactive sewer infrastructure improvement projects, many of which are outlined in the Sewer Collection System Master Plan (SCSMP), as part of the annual Capital Improvement Program (CIP). While significant focus is placed on regular maintenance and upgrades, unexpected failures and emergency infrastructure repairs can still occur despite these preventative efforts.

During recent routine maintenance on our sewer mainlines, the City discovered that the manhole located at Beach Street and Del Monte Boulevard has deteriorated to a point where immediate repair is required. The manhole shows significant corrosion of the aging brick walls lining and deterioration of the 3 connecting lateral sewer lines. Maintenance cleaning cannot occur under these conditions, as it would jeopardize the pipe and risk complete failure. Additionally, the bottom of the manhole is completely compromised, causing sand and native materials to enter the wastewater system, causing debris to flow to the downstream manholes. This could cause the mainline to become plugged, which would create a sewer overflow.

City staff explored options to repair the 10-foot-deep manhole and connecting mainlines and determined that a complete reconstruction needs to occur immediately. Public Works staff contacted Monterey Peninsula Engineering (MPE), a local engineering contractor who specializes in underground pipelines, excavation, and reconstruction of utilities. The City of Pacific Grove has utilized MPE on numerous projects, including sewer and manhole rehabilitation, so they are familiar with our system and infrastructure.

MPE provided the City with a quote to remove and replace the manhole for a price of $49,850. They have crews ready to mobilize and make this necessary repair to ensure the manhole does not fail.

Although failure has not occurred, the remaining useful life of the manhole is very limited and concerning.

To design, engineer and prepare a bidding packet to receive additional pricing proposals could take PGCC 6-4-25
63 months, and Public Works staff is concerned that a sewer failure could occur in that timeframe.

In accordance with Pacific Grove Municipal Code (PGMC) Section 2.16.080, Bidding ProceduresDispensation (a), the City dispensed formal bidding procedures to address the emergency, and (i) When reasonably necessary for the preservation or protection of public peace, health, safety, or welfare of persons or property.

OPTIONS

1. Do not authorize the execution of an agreement with MPE for the repair of the manhole at Beach Street and Del Monte Blvd. (Not repairing the manhole immediately could lead to failure and prompt a sanitary sewer overflow).

FINANCIAL IMPACT:

The emergency sewer work will be funded from the Public Works wastewater operations budget, which is derived from the Sewer Enterprise Fund. There is sufficient funding to accommodate this repair.

FOCUSED PRIORITY AREA: Infrastructure
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64 Agenda No. 11 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Leticia Livian, Human Resources Director
MEETING DATE: June 04, 2025
SUBJECT: Ordinance Amending the Salary Classification Schedule CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Request the City Attorney read the title of the ordinance;

2. Motion to waive further reading of the ordinance;
Introduce and hold a first reading of an ordinance to amend the salary classification schedule; and approve the amendment; and

3. 4. Direct that a summary of a proposed ordinance be published as approved by the City Attorney.

DISCUSSION
The City salary classification schedule identifies the job classifications approved by Council (e.g., Office Assistant) and the hourly rates of pay for each classification at each step authorized by the Personnel Rules. Pursuant to Charter Article 25 and Pacific Grove Municipal Code (PGMC) Section 4.20.280, approval and amendment to the classification schedule must be adopted by the Council.

MOU & Benefit and Compensation Plans
In 2023, City Council approved the General Employees Association (GEA) and Management Employees Association (MEA) Memorandum of Understanding (MOU). City Council also approved the Benefits and Compensation Plans (Plans) for Non-represented Management and Confidential Group and the Department Head Group. Approval of the MOU’s and Plans included a 3% cost of living adjustment (COLA) for three years (FY 23/24, FY 24/25, FY 25/26). This amendment would be the third installment of the approved COLA for fiscal year 25/26. The COLA is effective the first full pay period in July 2025.

In 2024, the City Council approved a Memorandum of Understanding (MOU) with the Police Officer Association (POA). The MOU includes a 3% cost of living adjustment (COLA) for each of the next three fiscal years: FY 24/25, FY 25/26, and FY 26/27.

As part of the agreement, a compensation study will be conducted during FY 25/26 to evaluate total compensation for POA classifications. Based on the results of this study, a market adjustment may be considered if it is determined that POA classifications are more than 3% below 95% of the market median in total compensation. As of the date of this report, the outcome of the market analysis and PGCC 6-4-25
65 subsequent discussions have not been finalized. Accordingly, the 3% COLA will be implemented as scheduled. Should a market adjustment be warranted, it will be applied retroactively to the first full pay period in July 2025.

Pursuant to Charter Article 25 and Pacific Grove Municipal Code (PGMC) Section 4.20.280, approval and amendment to the classification schedule must be adopted by the Council.

The requested changes are for GEA, MEA, POA, Non-represented Management and Confidential and the Department Head Groups and classifications that align with these groups. All other classifications in the salary schedule remain the same. To view the current salary schedule, click here.

The revised salary schedule reflecting the changes are incorporated into the attached ordinance with impacted classifications bolded in black.

OPTIONS
Provide alternative direction to staff.

FINANCIAL IMPACT:

The COLA’s and market adjustments are budgeted in the FY 25/26 budget.

GEA
The increase for year 3 of the COLA is estimated to be approximately $140,653 MEA
The increase for year 3 of the COLA is estimated to be approximately $73,633 Non-represented Management and Confidential and Department Head Groups The increase for year 3 of the COLA for non-represented confidential group is estimated to be approximately $73,471
The increase for year 3 of the COLA for the department head group is estimated to be approximately $64,686
The increase for year 3 COLA for POA is estimated to be approximately $68,637 FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Ordinance
PGCC 6-4-25
66 ORDINANCE NO. 25-________

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

AMENDING THE CLASSIFICATION SCHEDULE
Findings

1. In 2023, City Council approved the General Employees Association (GEA) and Management Employees Association (MEA) Memorandum of Understanding (MOU).

City Council also approved the Benefits and Compensation Plans (Plans) for Nonrepresented Management and Confidential Group and the Department Head Group; and

2. Approval of the MOU’s and Plans included a 3% cost of living adjustment (COLA) for three years (FY 23/24, FY 24/25, FY 25/26); and

3. In 2024, the City Council approved a Memorandum of Understanding (MOU) with the Police Officer Association (POA). The MOU includes a 3% cost of living adjustment (COLA) for each of the next three fiscal years: FY 24/25, FY 25/26, and FY 26/27; and

4. The GEA, MEA, POA, Non-Represented and Confidential and Department Head Groups and classifications that align with those groups, salary ranges will be revised to reflect the 3% COLA increase; and

5. The COLA is effective the first full pay period in July 2025 for all groups and aligned classifications; and

6. Modifications to the salary classification plan must be amended to revise hourly rates; and

7. Amendment to the classification plan must be adopted by the City Council pursuant to Charter Article 25 and Pacific Grove Municipal Code (PGMC) Section 4.20.280; and

8. 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. Enactment of this ordinance action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment pursuant Section 15378.

Ordinance

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:

PGCC 6-4-25
67 SECTION 1. The foregoing findings of the City Council are incorporated into this Ordinance as if set forth in full.

SECTION 2. The position classification plan approved and adopted by the City Council pursuant to Charter Article 15 and PGMC § 4.20.280 is amended for GEA, MEA, POA, Nonrepresented Management and Confidential and Department Head Groups classifications and aligned classifications, with the following salary schedule:

PGCC 6-4-25
68 City of Pacific Grove
Salary Schedule - Hourly Rate
Full-time and Part-time
Hourly Salary Steps
Step Step Step Step Step Step Step Step
1A 2B 3C 4D 5E 6F 7G 8H
124-001 Accountant 35.82 37.62 39.50 41.47 43.55 44.63 45.75 46.89 219-000 Accountant, Chief 42.83 44.97 47.22 49.58 52.06 54.01 56.04 218-003 Accountant, Senior 40.88 42.93 45.07 47.32 49.69 51.55 53.49 120-001 Accounting Assistant 28.28 29.69 31.18 32.73 34.37 35.23 36.11 37.01 125-01 Accounting Assistant, Senior 30.07 31.57 33.15 34.80 36.54 37.46 38.39 39.35 304-001 Administrative Services Director (ASD) 71.79 75.38 79.15 83.10 87.26 91.62 96.20 302-001 ASD/ Assistant City Manager 80.80 84.84 89.08 93.53 98.21 103.12 108.27 212-000 Administrative Services Manager 57.46 60.33 63.35 66.52 69.84 73.33 77.00 170-000 Administrative Analyst 36.15 37.96 39.85 41.85 43.94 45.04 46.16 47.32 104-001 Administrative Assistant 24.38 25.60 26.88 28.22 29.63 30.37 31.13 31.91 171-001 Administrative Coordinator 27.61 28.99 30.44 31.96 33.56 34.40 35.26 36.14 505-001 Animal Control Officer 28.54 29.97 31.47 33.04 34.69 35.99 37.34 216-002 Assistant Finance Manager 39.13 41.08 43.14 45.29 47.56 49.34 51.19 090-000 Cashier 16.50 17.33 18.19 19.10 20.06
243-001 City Clerk 58.64 61.58 64.66 67.89 71.28 74.85 78.59 244-001 City Clerk/DEI Coordinator 61.58 64.66 67.89 71.29 74.85 78.59 82.52 002-000 City Council Member 420 per month
301-001 City Manager 121.00
300-001 City Manager Pro Tempore 121.00
164-002 Code Compliance Officer 35.56 37.34 39.20 41.16 43.22 44.30 45.41 46.54 205-000 Community Development Director 73.97 77.67 81.55 85.63 89.91 94.41 99.13 507-001 Community Service Officer 29.15 30.61 32.14 33.75 35.44 36.76 38.14 209-000 Construction Project Manager 44.54 46.77 49.11 51.56 54.14 56.17 58.28 40-000 Custodian 17.64 18.52 19.45 20.42 21.44
204-001 Deputy City Clerk 35.31 37.07 38.93 40.87 42.92 45.06 47.32 305-001 Deputy City Manager 68.57 72.00 75.60 79.38 83.35 87.52 91.89 156-001 Equipment Mechanic 35.97 37.77 39.66 41.64 43.72 44.81 45.93 47.08 157-000 Equipment Mechanic, Senior 38.29 40.20 42.21 44.32 46.54 47.70 48.89 50.12 256-000 Finance Director 71.79 75.38 79.15 83.10 87.26 91.62 96.20 208-001 Financial Analyst 32.99 34.64 36.37 38.19 40.10 41.60 43.16 310-001 Human Resources Director 71.98 75.58 79.36 83.33 87.49 91.87 96.46 210-001 Human Resources Manager 51.39 53.96 56.66 59.49 62.47 65.59 68.87 105-001 IT Support Specialist 28.41 29.83 31.32 32.89 34.53 35.39 36.28 37.19 64-000 Intern 16.50 17.33 18.19 19.10 20.06
64-3 Intern II 21.38 22.45 23.58 24.75 25.99
208-002 Librarian 33.98 35.67 37.46 39.33 41.30 42.85 44.45 122-001 Library Assistant 26.23 27.54 28.92 30.36 31.88 32.68 33.50 34.33 144-002 Library Assistant, Senior 28.12 29.52 31.00 32.55 34.18 35.03 35.91 36.80 199-000 Library Clerk 19.70 20.69 21.72 22.81 23.95
219-000 Library Director 69.52 73.00 76.65 80.48 84.50 88.73 93.17 50-004 Lighthouse Docent Coordinator 16.50 17.33 18.19 19.10 20.06 154-000 Maintenance Supervisor 38.22 40.13 42.14 44.25 46.46 47.62 48.81 50.03 132-000 Maintenance Worker 30.51 32.03 33.63 35.31 37.08 38.01 38.96 39.93 146-001 Maintenance Worker, Senior 34.23 35.94 37.73 39.62 41.60 42.64 43.71 44.80 208-003 Management Analyst 40.66 42.69 44.83 47.07 49.42 51.28 53.20 001-000 Mayor 700 per month
Code Classification
PGCC 6-4-25
69 City of Pacific Grove
Salary Schedule - Hourly Rate
Full-time and Part-time
Hourly Salary Steps
Step Step Step Step Step Step Step Step
1A 2B 3C 4D 5E 6F 7G 8H Code Classification
506-001 Parking Enforcement Officer 27.42 28.80 30.24 31.75 33.33 34.58 35.88 165-001 Planner, Assistant 37.24 39.10 41.05 43.10 45.26 46.39 47.55 48.74 168-002 Planner, Associate 41.38 43.45 45.62 47.90 50.29 51.55 52.84 54.16 241-002 Planner, Principal 51.73 54.32 57.03 59.88 62.88 65.23 67.68 169-001 Planner, Senior 46.86 49.20 51.66 54.24 56.96 58.38 59.84 61.34 201-000 Police Adm. Services Manager (ASM) 57.46 60.34 63.35 66.52 69.85 73.34 77.00 211-001 Police ASM/Public Information Officer 60.33 63.35 66.52 69.84 73.33 77.00 80.85 602-001 Police Chief 90.46 94.98 99.73 104.71 109.95 115.45 121.22 601-001 Police Commander 64.09 67.30 70.66 74.19 77.90 81.80 85.89 516-001 Police Officer 49.15 51.61 54.19 56.90 59.75 62.74 65.87 513-000 Police Officer Recruit 25.08 26.34 27.65 29.04 30.49 32.01 33.61 521-002 Police Records Supervisor 33.08 34.74 36.48 38.30 40.21 41.72 43.29 524-001 Police Sergeant 56.79 59.63 62.61 65.74 69.03 72.48 76.11 508-001 Police Services Technician 29.15 30.61 32.14 33.75 35.44 36.76 38.14 62-001 Pre School Manager 19.88 20.88 21.92 23.02 24.17 206-002 Principal Civil Engineer 57.46 60.33 63.35 66.52 69.84 73.34 77.00 219-001 Program Manager 46.58 48.91 51.36 53.92 56.62 58.74 60.95 206-000 Program Manager, Senior 57.46 60.33 63.35 66.52 69.84 73.33 77.00 509-001 Property and Evidence Technician 30.61 32.14 33.75 35.43 37.21 38.60 40.05 207-000 Public Works (PW) Director 74.22 77.94 81.83 85.92 90.22 94.73 99.47 303-001 PW Director/ Deputy City Manager 77.57 81.45 85.52 89.80 94.29 99.00 103.95 220-002 Public Works Superintendent 50.64 53.17 55.83 58.62 61.56 63.86 66.26 10-001 Recreation Assistant I 16.50 17.33 18.19 19.10 20.06 51-001 Recreation Assistant II 20.21 21.22 22.28 23.39 24.56 118-001 Recreation Coordinator 30.12 31.62 33.20 34.86 36.61 37.52 38.46 39.42 217-003 Recreation Coordinator, Senior 41.84 43.93 46.13 48.44 50.86 52.77 54.74 62-002 Recreation Program Supervisor 26.06 27.36 28.73 30.17 31.68 216-003 Risk Manager 39.12 41.08 43.13 45.29 47.55 49.34 51.19 209-000 Senior Librarian 39.32 41.29 43.35 45.52 47.80 49.59 51.45 219-005 Urban Forester 46.58 48.91 51.36 53.92 56.62 58.74 60.95 170-001 Volunteer Coordinator 29.64 31.12 32.68 34.32 36.03 36.93 37.86 38.80 Classification
203 Extra-Help Retired Annuitant
Hourly Salary Range

16.50 - 121.00
PGCC 6-4-25
70 SECTION 3. The City Manager is directed to execute all documents and to perform all other necessary City acts to implement this Ordinance.

SECTION 4. In accord with Article 15 of the City Charter, this ordinance shall become effective on July 6, 2025.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this ___ day of June 2025, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:
________________________
NICK SMITH, Mayor
ATTEST:
_________________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_________________________________
BRIAN PIERIK, City Attorney
PGCC 6-4-25
71 Agenda No. 11 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Fred Marsh, Administrative Services Director
MEETING DATE: June 04, 2025
SUBJECT: Ordinance to Adopt the Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Request the City Attorney to read the title of the ordinance;

2. Motion to waive further reading of the ordinance;
Introduce and hold the first reading of an ordinance to adopt the Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget;

3. Direct that publication of the ordinance will be satisfied by publication of a summary approved by the City Attorney.

4. DISCUSSION
On May 7, 2025, staff presented the draft FY 2025/26 and 2026/27 Capital Improvement Program and received comments and feedback from the City Council and community for inclusion in the final draft budget document.

On May 21, 2025, the City Council received a presentation on the draft General Fund budget for FY 2025/26 and 2026/27, the draft investment and financial polices, and information related to the City's pension challenges. These topics received comments and feedback from the City Council and community for inclusion in the final draft budget document.

This agenda item will present the special funds part of the draft proposed two year budget for Fiscal Years 2025-26 and 2026-27. Staff will provide a PowerPoint presentation on these funds during the meeting. The action before the City Council is to adopt an Ordinance (Attachment No. 1) for the draft Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget (Attachment No. 2).

The final draft budget document incorporates all prior comments and feedback from the City Council and Community into the final draft budget document. These items are subject to additional changes from staff as well as feedback from the City Council. A complete version of PGCC 6-4-25
72 the budget for the City will be presented at the second reading of an ordinance at the June 18th City Council meeting.

OPTIONS
Approve ordinance
Provide alternate direction
FINANCIAL IMPACT:

The fiscal impact of the proposed budget for Fiscal Years 25-26 and 26-27 is contained in the attached budget document.

FOCUSED PRIORITY AREA: Financial Sustainability
Attachments
Budget Ordinance
Draft Budget 25/26 and 26/27
PGCC 6-4-25
73 ORDINANCE NO. 25-xxx

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

ADOPTING THE OPERATING AND CAPITAL PROJECTS BUDGET FOR THE FISCAL YEAR (FY) 2025-26;
FACTS

1. The City Council held a public hearing and first reading of an ordinance to adopt the FY 2025-26 Operating and Capital Projects Budget.

2. The City Manager is recommending adoption of the FY 2025-26 Budget to reflect the City Council’s expressed goals for the fiscal year budget.

3. Pursuant to Charter Article 15, adoption of the annual budget and or amendment of the budget must be approved by ordinance.

4. A summary of the Ordinance, approved by the City Attorney, was published on .

5. 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.

6. Enactment of this ordinance does not constitute a “project” as defined by California Environmental Quality Act (CEQA) and as such is not subject to/exempt from CEQA because it is an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment and involves the creation of a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:

SECTION 1. The foregoing recitals are adopted as findings of the City Council as set forth fully within the body of this ordinance.

SECTION 2. That the City Council does hereby approve and adopt the operating budget and capital improvement program for the City for FY 2025-26, and that they hereby authorize the City Manager and Administrative Services Director to make any non-substantive changes as needed to meet Government Finance Officers Association (GFOA) and California Society of Municipal Finance Officer (CSMFO) budget award program comments and criteria.

SECTION 3. That the City Council authorizes at the closeout of Fiscal Year 2024-25 by the Finance Division of the Administrative Services Department the carryover of any unspent and encumbered funds for operations and capital projects and any other unspent funds for active capital projects, to be reappropriated in the Fiscal Year 2025-26 budget for continued use in the same manner so long as there are sufficient available fund balances to finance these commitments.

SECTION 4. In accord with Article 15 of the City Charter, this ordinance shall become effective upon adoption hereof.

PGCC 6-4-25
74 PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 18th day of June, 2025, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:

NICK SMITH, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

BRIAN PIERIK, City Attorney
PGCC 6-4-25
75 City of Pacific Grove
California Proposed Budget
Fiscal Years 2025-2026 and 2026-2027
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
www.cityofpacificgrove.org
PGCC 6-4-25
76 City of Pacific Grove
List of Principal Officials
Fiscal Year 2025-2026
Elected Officials

Appointed Officials
Department Heads / Administrators
Administrative Services: Fred Marsh Chief of Police: Casey Day City Clerk: Sandra Kandell Community Development: Jon Biggs Human Resources: Leticia Livian Public Works: Daniel Gho Library Director: Rachel Gaither Fire (Contract): Andrew Miller Nick Smith
Mayor
Joe Amelio
Councilmember
Cynthia Garfield
Councilmember
Lori McDonnell
Councilmember
Chaps Poduri
Councilmember
Tina Rau
Councilmember
Paul Walkingstick
Councilmember
Matt Mogensen
City Manager
Brian Pierik
City Attorney
PGCC 6-4-25
77 300 Forest Avenue
Pacific Grove, California 93950
Telephone (831) 648-3100 s Fax (831) 375-9863
City of Pacific Grove
June 18, 2025
Honorable Mayor and City Council Members:

On behalf of staff, it is my honor to present the proposed budget for Fiscal Years 2025-26 and 2026-27. The City’s two year budget is intended to serve as a financial plan, a communication tool and an operations guide for the City departments and the community. The revenue estimates incorporated in the budget reflect conservative optimism. The expenditure estimates are aligned with planned revenue growth, along with the use of the available fund balance to support capital improvements and equipment. All funds within the two year budget Budget have been allocated to provide a continued commitment to the community, to support department missions and operational goals, in accordance with City Council Policy 000-26, as noted below:

Areas of Focus
Financial Sustainability
The City manages its financial resources to ensure the long-term delivery of municipal services. Goals in this area include identifying a program to reduce unfunded liabilities, reviewing and revising reserve policies to meet equipment and facility needs; and identifying and reducing expenditures and enhancing revenues.

Infrastructure
The City prioritizes the provision of facility, human, and technology infrastructure that enhances the quality of life for residents and businesses.

Goals in this area include completing a five-year capital improvement program to address the completion of priority facility projects, investing in technology and workforce systems and addressing critical physical infrastructure needs.

Environmental Stewardship
The City cares for and protects its natural resources and amenities. Goals in this area include completing a climate action and adaptation efforts and protecting and preserving the natural resources of the City.

Community Development
The City strategically implements programs to promote housing and economic opportunities. Goals in this area include exploring options for an affordable housing project and partner opportunities and reviewing all permit processes to eliminate barriers to housing and business These areas are designed to address the City’s vision and mission statements These items were developed by the Board and Executive Team with a third party. The City is organized in a way to most effectively implement these values. These values are in sync with the City’s vision and mission statements.

PGCC 6-4-25
78 City Profile / Demographics
The City is a small coastal community located in Monterey County that occupies just under three square miles, with a population of approximately 15,000 residents, with 56% of the adults having college degrees, and almost half of the population over the age of 50, with an average household income of approximately $120K and average median sales price of $1.46 million, with 48% of the residential properties owner occupied.

Climate / Location
The City is situated on a peninsula which is bordered by Monterey, Pebble Beach, the Pacific Ocean, and the Monterey Bay with a County unemployment rate of approximately 7%. Pacific Grove has a very temperate climate year round, with temperatures ranging from the 70’s in the late summer to the mid 40’s in the winter. Pacific Grove has over 1,300 registered historical homes built prior to 1926.

Education
The Pacific Grove Unified School District (PGUSD) serves the City and portions of Pebble Beach. Based on the California Department of Education's Academic Performance Index scores, PGUSD has received the highest overall ranking of all public schools on the Monterey Peninsula. Schools within the district include: Pacific Grove High School, Pacific Grove Middle School, Robert Down Elementary School, and Forest Grove Elementary School.

Residents can take advantage of nearby colleges, including Monterey Peninsula College, the Middlebury Institute of International Studies at Monterey, California State University Monterey Bay, and the Hopkins Marine Institute operated by Stanford University. An educational profile is provided below.

Businesses
The City has a wide variety of businesses ranging from professional services to health care; and retail sales to lodging accommodations. Tourism is a key economic driver for the City, with a large number classified as either in the accommodation, food service or retail industries. Top employers within the City include the City and school district, Asilomar Hotel and Conference Center, three retirement communities and the local supermarkets.

Hospitals in the vicinity include the Community Hospital of the Monterey Peninsula (CHOMP), Natividad Medical Center and Salinas Valley Memorial Hospital, while airports in the vicinity include Monterey Regional Airport, Marina Municipal Airport and San Jose International Airport

City Government Structure and Services
Pacific Grove is a Charter City which was incorporated in 1889. The City operates under the Council-City Manager form of government with a sevenmember City Council elected by the citizens. The Mayor is directly elected to serve a two-year term and Council members are elected to alternating four-year terms. The Council has the authority to establish all laws and regulations, subject only to the limits of the City Municipal Code and State legislation. The City Council appoints a City Manager to serve as the City’ s chief administrative officer. The City Manager provides direction to all City departments and ensures that all Council policies are implemented.

The City provides police protection, street, park and facility maintenance, recreational, planning, zoning, economic development, library, administrative and financial services for Pacific Grove. Fire protection services are provided through a contract with the City of Monterey. Additional services include sewer operations, a municipal golf course, Point Pinos Lighthouse, cemetery, a monarch butterfly sanctuary and habitat preserve, several local parks, trails and open space and a local water reclamation facility.

PGCC 6-4-25
79 History
The natural advantages of settling along the Monterey Peninsula were recognized thousands of years before Pacific Grove was founded. Native Americans, which are currently known as the Ohlone/Costanoan-Esselen Nation occupied the coastal and inland areas, which included Pacific Grove.

In 1852, development began when Congress commissioned the building of eight lighthouses on the West Coast.

Pacific Grove’s Point Pinos location was selected as one of the first seven sites in California to receive a lighthouse.

The construction of the Point Pinos Lighthouse was completed in 1854, with the lens installation taking place in 1855. The first lighthouse keepers lived a rugged life, with the town only accessible through forest and sand dunes.

Supplies arrived periodically by sea, while the keepers also raised a portion of their own food.

During the 1870’s many small towns were founded in California. During that period, Pacific Grove was founded for a religious retreat. David Jacks, a wealthy landowner and rancher, owned most of the land that now constitutes Pacific Grove. In 1875, he consented to the development of a Methodist Christian Seaside Retreat on 100 acres of pine-covered coastal land. The Retreat was conceived as a place to worship in a quiet and beautiful natural environment. The first twoweek Methodist camp meeting was held in August of 1875, with annual meetings following for several decades. Other inhabitants included Chinese immigrants who established a thriving fishing village.

Gradually, sections of Mr. Jacks’ property were divided into lots, which later were sold for year-round homes and stores. By 1883, David Jacks sold his remaining Pacific Grove land, which included Point Pinos to the Pacific Improvement Company (PIC). The PIC was a subsidiary of the Southern Pacific Railroad which supported the development of a seaside resort to attract railway passengers. One of the PIC’s first accomplishments in Pacific Grove was to connect the town’s water supply to the Carmel River to ensure an adequate water system. The PIC also graded and leveled streets; surveyed lots, and established sewage, drainage, and trash pick-up.

As time went on, Pacific Grove began enticing more visitors. The first hotel opened in 1887, followed by the incorporation of the City and the addition of a railroad in 1889. Within ten years, the Pine Street School, the Hopkins Seaside Lab, and the Pacific Grove Bath House were built; and the community began to benefit from electric lights and a telephone exchange. Through a $10,000 Carnegie grant and a land donation, the City opened a public library in 1908. The Mission style Library, with expansive interior arches, is still actively serving the community.

Community Attractions and Events

The City is home to many attractions, including Point Pinos Lighthouse, Hopkins Marine Station, Asilomar State Beach, Lovers Point Park and Beach, Butterfly House and the Monterey Bay Coastal Recreation Trail and Shoreline Park. The city also offers many special events during the year, including:  Good Old Days • Christmas at the Inns  Butterfly Parade • Farmers’ Market  Butterfly Ball • Holiday Parade of Lights  City 4th of July Celebration • Little Car Show  Youth Ambassadors Night • Christmas Tree Lighting  Pet Parade • Summer Lights  Touch a Truck • Rudolph Run and Walk  Holiday Tree Lighting • Pacific Grove Museum Night Owl  Monterey Bay Half Marathon • Quilt Show  Walk of Remembrance • Holiday in the Park  Veterans Day Ceremony • Sunset Celebration  Croquet Tournament • Walk with P.R.I.D.E Butterfly Parade 4 th of July Celebration
PGCC 6-4-25
80 Selected Departmental Achievements – Current Fiscal Year The City strived to make progress on a number of significant goals previously established including the following, which address all of the City’s areas of focus. A significant portion of these goals are funded by the General Fund, with applicable portions being funded by grants and the City’s enterprise, capital and special revenue funds:

City Manager  Implemented an electronic performance management system  Ongoing importing of contracts into Laserfiche (past & present)  Continued implementation of the retention and recruitment plan Administrative Services – Information Services  Completed Cybersecurity Assessment project  Enhanced internet reliability and performance at the City Hall, PD, and Library  Completed network and server upgrades, implement maps application Administrative Services - Finance  Received an award for excellence for the City’s Financials (ACFR) from GFOA  Received awards for the City’s operating budget from GFOA and CSMFO  Enhanced the transparency of the department's section of the City's website Community Development  Submitted second draft to the California Department of Housing (HCD)  Offered next day inspection services, with a focus on the new downtown hotel  Sought qualifying housing rehabilitation projects for use of CDBG funds Fire  Completed significant fire station upgrades including roof and tower repair  Began Advanced Life Support (ALS) paramedic service  Began a Defensible Space program to inspect high fire severity zones Library  Successful efforts helped to support intergenerational events and programming  Opened dialogue with local libraries about establishing partnerships  Investigated the feasibility of developing a small/private meeting space for users Police  Maximized social media presence and expand community outreach efforts  Facilitated educational workshops on the dangers of opioids/fentanyl  Hosted workshops on traffic safety, leverage technology, increase enforcement Public Works  Maintained over 600,000 SF of roadway, enhanced pedestrian safety  Finalized sidewalk dining guidelines, completed sidewalk extension project  Completed five Facility Conditions Assessments Recreation  Added new Summer Sports - Junior Golf Camp and Basketball Camp  Ensured continued availability of youth center throughout the school year  Expanded existing Youth Soccer League adding an additional 70 registrations Police
Downtown Pacific Grove
Fire Contract with Monterey
Lovers Point
Esplanade Park
Elmarie Dyke Open Space
PGCC 6-4-25
81 Key Departmental Goals – Next Two Fiscal Years
Despite limited resources available, the City has developed an ambitious work plan for the next two years including the following, which address the City’s Areas of Focus of Financial Sustainability, Infrastructure, Environmental Stewardship and Community Development. A significant portion of these goals are funded by the General Fund, with applicable portions being funded by grants and the City’s enterprise, capital and special revenue funds:

City Manager  Negotiate new MOUs for all bargaining units  Streamline the Business License application process  Implement a comprehensive community outreach program Administrative Services – Information Services  Complete Next Phase of Cybersecurity Assessment project  Implement Security Cameras at certain key locations  Implement Cloud Backup Solution to enhance Disaster Recovery capabilities Administrative Services - Finance  Select a vendor to assist the City with the selection of a new ERP system  Issue interim financial and investment reports on a quarterly basis  Continue to update the City website on a timely basis Community Development  Achieve HCD certification of the 6th Cycle housing element  Initiate zoning ordinance amendments to streamline project reviews  Complete grant funded local plan amendments addressing coastal hazards Fire  Install a new Station Alerting system compliant with County upgrades  Place new fire engine in service  Continue efforts towards education and community fire risk reduction Library  Enhance the website with improved design and navigation, and updated content  Look to develop a partnership with organizations to implement a literacy program  Increase the number of intergenerational programs by 50% Police  Expand and modernize the department’s digital and social media presence  Modernize internal training and leadership development  Strengthen crime prevention through technology and community-led models Public Works  Finalize facility assessments, incorporate into 5 year Capital Improvement Plan  Finalize Climate Action and Adaptation Plan  Begin development 10-year sewer master plan and associated user fee study Recreation  Evaluate programming to maximize participation  Continued with expanded youth basketball and soccer programs  Enhance the online rental portal, to ensure seamless customer service Farmers Market
Chautauqua Hall
Arnett Park
Platt Park
Morris Dill Tennis Courts
Senior Center
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82 Ten Year Trend Information
Trend information is in the Annual Comprehensive Financial Report (ACFR) and budget. This data can show trends in operating revenues and expenses, which will impact the City’s ability to increase its reserves and fund capital projects in the future. Categories include:
• Financial Trends • Demographic InformaƟon
• Revenue Capacity • Economic InformaƟon
• Debt Capacity • OperaƟng InformaƟon
Budgetary Controls

In accordance with the City’s Budget and Financial Management Policy, the City Manager recommends the budget and presents it to the City Council in May and June. After public input and discussion is received, the City Council may request modifications to the budget or introduce an ordinance adopting the budget. The City’s budget is then adopted by ordinance and becomes effective on July 1st of each fiscal year. Budgetary controls are set at the department level and are maintained to ensure compliance with the budget approved by the Board. The City Manager or the Administrative Services Director has the discretion to transfer between activities. City Council approval is required for any overall increase in the budget for any fund or changes to the Capital Improvement Program.

All governmental, enterprise, and internal service funds are appropriated annually. The governmental funds include general, special revenue, capital project, and permanent funds.

The Annual Comprehensive Financial Report includes all financial activities of the City.

Financial data for all funds through which services are provided by the City have been included in this report. The City maintains an encumbrance accounting system as part of maintaining budgetary control. Encumbered amounts lapse at the end of the fiscal year. However, outstanding encumbrances are reappropriated as part of next year’s budget after staff review to determine if they are still needed.

Financial Policies
The City has established financial policies to provide guidance on several financial areas, including the following which are part of the adopted budget and summarized below.  Budget and Financial Management (City Council Policy 400-6)  Investments (City Council Policy 400-5)  Fees, Charges and Cost Recovery (City Council Policy 400-4) Category Policy
Balanced Budget OperaƟng Revenues >= OperaƟng Expenditures (Use of Reserves allowed to balance budget)
General Fund Reserves Recommended 25% of Budgeted Expenditures Golf Fund Reserves Recommended 25% of Revenues of the Golf Fund Pension / Capital Reserves Recommended $1 million minimum for each Sewer Fund Reserves Recommended Two Years Funding of Capital Projects Worker’s CompensaƟon Fund At least 75% of total fund liabiliƟes Liability Insurance Fund At least 75% of total fund liabiliƟes Year End Surplus Ensure General Fund/Insurance Reserves are met, with remainder allocated 1/3 to Pension Reserve, 1/3 to
Capital Reserve and 1/3 to General Fund Reserves
Berwick Park
Butterfly House
Seven Gables Inn
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83 Risk Management

The City is a member of the California Joint Powers Insurance Authority (the “Authority”). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and administers programs for the pooling of self-insured losses, purchases excess insurance and reinsurance, and arranges for group purchased insurance for property and other lines of coverage.

The California JPIA began covering claims of its members in 1978.

Each member government has an elected official as its representative on the Authority’s Board of Directors. The Board operates through a nine-member Executive Committee. During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage.

Appropriations Limit
Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Beginning in Fiscal Year 1990-91, the appropriations limit is required to be calculated bas ed on the limit for the fiscal year 1986-87, adjusted for a.) either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located and b.) an inflation factor either being the annual percentage change in per capita personal income or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The City’s appropriations remains well under this annual limit.

Appendix

Included in the appendix of the Budget is an list of key acronyms, a glossary with key terms used in the documents and an index to key sections of the documents. The appendix of the Budget also includes calculations of the annual appropriations limit, detailed information on debt obligations, and resolutions adopting the budget and appropriation limit.

Awards
The City has received from GFOA and from the California Society of Municipal Finance Officers (CSMFO) awards for excellence in reporting for its budget and from GFOA for its ACFR. These awards focus on providing high quality documents for the citizens, City Council, customers, regulators and other interested parties. The City will submit the budget to GFOA and the California Society of Municipal Finance Officers (CSMFO) and the ACFR to GFOA in accordance with their award programs.

Acknowledgements
We wish to recognize the City Council for their leadership, support and commitment to fiscal sustainability and longterm financial planning. We also express appreciation to all departments for providing sound fiscal management and their assistance with preparation of the ACFR and budget, with special thanks to the staff of the Finance Division of the Administrative Services Department who assisted with the preparation of both.

Respectfully submitted,
Matt Mogensen Fred Marsh
City Manager Administrative Services Director
Lovers Point
Recreation Trail
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84 City of Pacific Grove
Mission, Vision and Core Values
Fiscal Years 2025-2026 and 2026-27
Vision Statement
Pacific Grove will thoughtfully grow as an inclusive seaside community that protects residential character, historic resources, promotes multi-beneficial development, and ensures respect for the environment.

Mission Statement
Deliver quality professional public services to all residents in the Pacific Grove community and the region, while ensuring high value and quality results.

Core Values
Leadership
We strive to uphold the highest work ethic, treat everyone fairly, empower people to do their best, promote continuous improvement, foster teamwork, communicate openly and respectfully so as to achieve trust and accountability throughout our community.

Inclusiveness
We cultivate an environment of trust and respect for all residents and visitors alike. We strive to ensure that our actions are inclusive and reflective of the diverse community of which we aim to be.

Integrity
We safeguard public trust through honest business practices and open communication. Our credibility with the public depends on our strong ethical stewardship of all resources.

Collaboration
We promote transparent engagement with citizens and stakeholders and expect our managers and consultants to understand the needs and values of our community.

Stewardship
We protect our unique natural environment and the habitat it provides. We facilitate a culture of sustainable practices. We maintain and preserve our municipal assets.

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85 City of Pacific Grove
Focus Areas with Value Statements and Proposed SupporƟng Tasks Fiscal Years 2025-2026 and 2026-27
Financial Sustainability
Policy Value Statement: The City manages financial resources to ensure the long-term delivery of City services Goal 1: IdenƟfy a program to reduce unfunded liabiliƟes  Pensions - Develop a plan to reduce our long-term pension obligaƟons  Local Water Project - Secure funding to repay the debt service for the water reclamaƟon facility  Storm Drains - Develop opƟons for a long-term storm drain infrastructure funding plan.

Goal 2: Review and revise reserve policies to meet equipment and facility needs  Reserve Policies - Update the City Council Financial and Budgetary Policies to revise the City’s reserve fund policies and present to the City Council
 Capital Plan - Create Capital Replacement Funds to plan for regular maintenance and replacement of vehicles, faciliƟes, equipment, infrastructure and park ameniƟes, and present to the City Council Goal 3: IdenƟfy and reduce expenditures and enhance revenues  Cost Recovery - Review low/no cost recovery programs for effecƟveness, recommend improvements  Revenue Enhancement - IdenƟfy potenƟal new revenue sources and present to the City Council  Risk Management - Implement risk management assessments findings and recommendaƟons to reduce workers compensaƟon and liability claim exposures Community Development
Policy Value Statement: Strategically implemenƟng programs promoƟng housing and economic opportuniƟes Goal 1: Explore opƟons for an affordable housing project and partner opportuniƟes  ADUs - Present findings and recommendaƟons to Council for direcƟon on unpermiƩed ADUs  Affordable Housing - IdenƟfy a preferred affordable housing project locaƟon Goal 2: Review all Permit processes to eliminate barriers to housing and economic development  Water AllocaƟon - Evaluate the City’s current and future water allocaƟons and facilitate a City Council discussion on the prioriƟzaƟon of water credits  Business License - Review business license process and implement efficiency measures  Permit Processes - Evaluate Ɵmelines and permit processes for commercial and residenƟal permits and implement efficiency measures where feasible PGCC 6-4-25
86 City of Pacific Grove
Focus Areas with Value Statements and Proposed SupporƟng Tasks Fiscal Years 2025-2026 and 2026-27
Infrastructure
Policy Value Statement: The City prioriƟzes the provision of facility, human, and technology infrastructure that enhances the quality of life for residents and businesses Goal 1: Complete a five-year capital improvement program to address the compleƟon of priority public facility projects (sidewalks, streets, water, wastewater, and parks)  Capital Plan - Develop and present a 5-year CIP plan to the City Council  Asset Management - Develop a new asset management database  Sidewalk Policy - Present updates to City Council Policy 700-4 regarding sidewalk repairs and installaƟon, to include a plan for City property and a sidewalk repair process for property owners Goal 2: Invest in technology and workforce systems
 AccounƟng System - Develop RFP and select vendor for new Enterprise Resource System  Disaster Recovery - Develop a business conƟnuity plan for IT infrastructure and databases  Staff RetenƟon - Develop a plan to develop and retain key staff members Goal 3: Address criƟcal physical infrastructure needs
 Schools - Develop a safe route to school plan and present to the City Council  Streetscape Plan - Create a downtown streetscape improvement plan  Wastewater Treatment - Release a sewer master plan RFP Environmental Stewardship
Policy Value Statement: The City cares for and protects its natural resources and ameniƟes Goal 1: Complete Climate AcƟon and AdaptaƟon Efforts
 Climate Plan - Present a Climate AcƟon and AdaptaƟon Plan to the City Council for approval  Fire Management - Provide fire safety inspecƟon services for residents living near George Washington Park and in High Fire Severity Zones
 George Washington Park - Complete a George Washington Park Master Plan Goal 2: Protect and Preserve the Natural Resources of Pacific Grove  Municipal Code - Complete the comprehensive update to Title 12 of the municipal code; revisions to focus on replanƟng compliance and tree appeal process; to be presented to the City Council for approval
 Wildlife ProtecƟon - Assess efforts within the City that can be achieved, within available resources and present feasible measures to the City Council for consideraƟon PGCC 6-4-25
87 City of Pacific Grove
Focus Areas with Value Statements and Proposed SupporƟng Tasks Fiscal Years 2025-2026 and 2026-27
AddiƟonal Milestone Tasks
 IniƟate and complete an updated sewer rate study and present to the City Council  Facilitate a Prop 218 rate seƫng process
 Evaluate exisƟng services/programs to idenƟfy efficiencies and cost savings  Provide cost and revenue analysis for the City Council’s review when new or expanded programs and services are proposed
 Evaluate potenƟal new revenue sources and present to the City Council  Amend threshold from $2,500 to $40,000 for a CIP project, with projects under new threshold considered maintenance
 Develop an informaƟon technology master plan and present to the City Council  Present the City Council a report on technological soluƟons with recommended prioriƟzaƟon that increase efficiency, reduce costs and improve service delivery  Develop a safe route to school plan with funding opƟons and present to the City Council  Create a downtown streetscape improvement plan and present to the City Council  Complete a sewer master plan update and present to the City Council  Evaluate LCP Amendments needed to protect the coastline and wildlife and recommend a scope of work and present to the City Council for direcƟon  Evaluate the City’s current and future water allocaƟons and facilitate a City Council discussion on the prioriƟzaƟon of water credits
 Conduct outreach to the business community to idenƟfy barriers to economic development and provide a report to the City Council regarding the findings  Review business license process and implement efficiency measures  Evaluate Ɵmelines and permit processes for commercial and residenƟal permits and implement efficiency measures where feasible
 Evaluate the City’s BCC review process and recommend improvements to enhance efficiency, effecƟveness and lower costs for housing and business development, to the City Council PGCC 6-4-25
88 Pacific Grove
City of Pacific Grove
Map of Pacific Grove and the
Monterey Bay Area
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89 PRESENTED TO
City of Pacific Grove
California
For the Fiscal Year Beginning
July 01, 2023
Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
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90 California Society of Municipal
Finance Officers
Certificate of Award
Operating Budget Excellence Award
Fiscal Year 2024-2025
Presented to the
City of Pacific Grove
For meeting the criteria established to achieve a CSMFO Award in Budgeting.

February 7, 2025
Ernie Reyna James Russell-Field, Chair 2024 CSMFO President Recognition Committee Dedicated to Excellence in Municipal Financial Reporting PGCC 6-4-25
91 City of Pacific Grove Budget
Organization Chart / Dept Activities / Boards & Commissions Through Fiscal Year 2026-27
City Attorney
(Contract)
Boards and
Commissions
Administrative
Services
Recreation
City Manager's Office Community Development
City Clerk Planning
Economic Development Building (Contract)
Human Resources Code Compliance Beautification and Natural Resources Housing Climate Action and Anticipation
Diversity, Equity and Inclusion
Administrative Services Public Works Downtown Business Improvement District Finance Buildings / Grounds Historic Resources
Cemetery Capital Improvements Hospitality Improvement District Information Services Environmental Planning Library
Risk Management Equipment Maintenance Museum
Forestry Planning
Golf Course Recreation
Lighthouse Site Plan Review
Local Water Project Traffic Safety
Sewer Other Ad Hoc Committees
Streets Zoning Administrator
Boards/Commissions
Administrative Enforcement Hearing Officer
Architectural Review
Mayor and City Council
Residents of the City of Pacific Grove
City Manager's
Office
Museum
(Contract)
Fire
(Contract)
Police
City Manager
Community
Development
Public Works
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92 City of Pacific Grove Budget
Fund Types
Department and program information are included in the subsequent sections of the document. All funds are separated by fund type. A definition of each fund type is provided below.

General Fund
The General Fund is the main operating fund for the City. Generally, this fund is used to account for those traditional government services of the City, such as police and fire protection, public works, recreation, planning, and general government services.

Internal Service Funds
Internal Services Funds are an accounting mechanism used to accumulate and allocate costs internally among the City of Pacific Grove’s various functions.

The City uses three internal service funds to account for the management of its retained risks associated with liability self-insurance, workers compensation, and employee benefits.

Enterprise Funds
The City’s enterprise activities include cemetery, sewer, water reclamation, and golf course operations. These services are supported by charges paid by users based on the type of services that are rendered.

Capital Projects Funds
These funds support projects that are funded by the General Fund. These projects are distinct from projects that are funded by the Enterprise or Special Revenue Funds.

Special Revenues Funds
These funds account for and report the proceeds of specific revenue sources that are restricted, committed, or assigned to specific purposes.

Permanent Funds
These funds account for financial resources that are restricted, committed, or assigned to expenditures for specific activities, including the acquisition or construction of capital facilities and other capital assets in governmental funds.

Andy Jacobsen Park
City Parks
Platt Park
Perkins Park
City Baseball Field
George Washington Park
Greenwood Park
Caledonia Park
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93 City of Pacific Grove Budget
General Fund
Main Fund - Fund 01
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Property Taxes $ 10,001,562 $10,296,000 $10,519,100 $10,931,300 $ 635,300 $11,360,000 TOT & Licenses 6,820,365 7,012,000 6,736,700 6,736,700 (275,300) 6,938,800 Sales & Use Tax 5,975,031 6,094,000 5,945,600 5,945,600 (148,400) 6,005,200 Utility Users Tax 2,118,069 2,043,000 2,155,500 2,183,500 140,500 2,212,700 Franchise Tax 1,635,967 1,659,000 1,582,400 1,603,400 (55,600) 1,625,700 Business License 607,647 393,000 393,000 393,000 - 404,800 Other Taxes 159,401 240,000 113,100 117,600 (122,400) 122,300 Intergovernmental Revenues 296,788 61,000 100,798 96,900 35,900 96,900 License, permits, and impact fees 1,260,969 1,274,000 973,500 1,013,100 (260,900) 1,043,400 Charges for Service 2,030,259 2,278,840 2,032,987 2,049,900 (228,940) 2,089,400 Interest, Rents and Concessions 1,074,388 630,000 747,600 619,700 (10,300) 623,500 Other Revenues 1,218,342 1,267,187 2,120,000 999,700 (267,487) 741,000 Fines and Forfeitures 36,868 115,000 13,500 39,000 (76,000) 39,000 Transfers In 3,359 - - - - -
Total Revenues / Transfers 33,239,014 33,363,027 33,433,785 32,729,400 (633,627) 33,302,700 Expenses / Transfers
Regular Salaries and Benefits 11,926,895 14,135,011 13,075,767 14,779,664 644,653 15,432,414 Debt Services & Obligations 1,423,872 1,462,562 1,462,562 1,512,562 50,000 1,557,562 Services and Supplies 10,342,411 12,764,625 12,499,274 10,798,277 (1,966,348) 11,168,257 Non-Operating Transfers 2,735,183 5,312,220 5,312,220 2,481,600 (2,830,620) 2,462,000 Pension - Unfunded Liability 4,006,443 4,212,163 4,212,163 4,747,019 534,856 5,030,731 Capital Outlay 256,965 384,797 286,322 370,000 (14,797) 225,500 Total Expenses / Transfers 30,691,769 38,271,378 36,848,307 34,689,122 (3,582,256) 35,876,464 Net Change 2,547,244 (4,908,351) (3,414,522) (1,959,722) (2,573,764) Available Ending Reserves $ 17,396,190 $12,487,839 $13,981,668 $12,021,945 $ 9,448,181 Reserve % 36% 42% 36% 27%
Overview / Analysis: The General Fund accounts for all of the City's activities not accounted for in the City's other funds.

Funds in the General Fund are mostly unrestricted in nature and can be used for the most part for any purpose, including providing subsidies and short-term loans for City's other funds as needed. $33
$33
$33
$33
$31
$37
$35
$36
2023-24
2024-25
2025-26
2026-27 In Millions
Revenues vs Expenses
Expenses Revenues
$17,396
$13,982
$12,022
$9,448
2023-24
2024-25
2025-26
2026-27 Thousands
Ending Available Reserves
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94 City of Pacific Grove Budget Dept Administrator
Internal Service Funds Administrative Services -
Employee Benefits - Fund 70 Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Charges for Services $ 343,739 $ 262,000 $ 273,797 $ 313,000 $ 51,000 $ 374,125 Interest Income 4,582 3,000 4,582 3,299 299 3,299
Total Revenues 348,321 265,000 278,379 316,299 51,299 377,424 Expenses
Employee Benefits 200,218 245,000 261,980 224,200 (20,800) 282,485 Other Expenses 82,240 87,000 97,102 88,500 1,500 91,000 Total Expenses 282,458 332,000 359,082 312,700 (19,300) 373,485 Net Change 65,863 (67,000) (80,703) 3,599 70,599 3,939
Available Ending Reserves $ 159,520 $ 92,520 $ 78,817 $ 82,416 $ (10,104) $ 86,355 Overview: The Employee Benefits Fund accounts are for the accumulation of contributions from departmental payroll accounts to fund and pay for a variety of employee benefit costs such as retiree health, dental, unemployment insurance, life/disability insurance, and temporary employee social security replacement costs. Each department's internal service charges are based on their estimated utilization of benefits, with revenues to cover unemployment insurance costs transferred based on a percentage of employee salaries.
$348
$278
$316
$377
$282
$359
$313
$373
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses Revenues
$160
$79
$82
$86
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
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95 City of Pacific Grove Budget Dept Administrator
Internal Service Funds Administrative Services -
Workers Compensation - Fund 71 Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Charges for Services $ 547,462 $ 705,000 $ 710,454 $ 910,138 $ 205,138 $ 985,138 Transfer In - - - - - -
Interest Income 21,057 17,113 21,057 15,161 (1,952) 15,161 Total Revenues 568,519 722,113 731,511 925,299 203,186 1,000,299 Expenses
Salaries and Benefits (98,917) 55,949 18,694 72,948 16,999 75,966 Insurance Claims 451,118 350,000 600,000 500,000 150,000 525,000 Insurance Premiums 287,582 305,000 277,919 319,000 14,000 350,000 Other Expenses 11,259 25,000 6,713 25,000 25,000 -
Total Expenses 651,041 735,949 903,326 916,948 180,999 975,966 Net Change (82,521) (13,836) (171,815) 8,351 22,187 24,333 Available Ending Reserves $ 744,877 $ 731,041 $ 573,062 $ 581,413 $ (149,628) $ 605,746 Reserve Target (75% Claim Liab.) $ 294,000 $ 329,000 $ 329,000 $ 329,000 N/A 329,000 $ Overview: The Workers Compensation Fund is an internal service fund. The City applies workers compensation rates to employee payroll records based on the classification of each position. The resulting bi-weekly contribution, along with claim reimbursements contribute to the Workers Compensation Fund revenues. Any excess or deficiency between the Fund’s projected revenues and expenses are supplemented through a separate internal service charge. This difference is charged to departments based on their proportional share of claims that have occurred over prior years. All Workers Compensation Fund revenues are used to cover the cost of program administration, claims expense, legal costs, injury and illness prevention programs; and the annual premium required to participate in California Joint Powers Insurance Authority. $569
$732
$925
$1,000
$651
$903
$917
$976
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
$745 Revenues
$573
$581
$606
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
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96 City of Pacific Grove Budget Dept Administrator
Internal Service Funds Administrative Services -
Liability Insurance - Fund 72 Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Charges for Services $ 1,137,962 $ 750,000 $ 750,000 $ 750,000 $ 915,000 - $ Interest Income 5,478 2,000 5,478 3,944 1,944 3,944
Transfer In - - - - - -
Total Revenues 1,143,440 752,000 755,478 753,944 918,944 1,944 Expenses
Salaries and Benefits (139,800) 49,803 44,038 64,967 15,164 66,902 Insurance Claims (90,909) 113,000 88,000 100,000 (13,000) 115,000 Insurance Premiums 468,430 515,000 557,706 677,000 162,000 734,000 Other Expenses 226,300 39,200 13,808 40,200 1,000 41,200 Total Expenses 464,021 717,003 703,552 882,167 165,164 957,102 Net Change 679,419 34,997 (128,223) 51,926 (163,220) (38,158) Available Ending Reserves $ 603,210 $ 638,207 $ 655,136 $ 526,914 $ (111,293) $ 488,756 Reserve Target (75% Claim Liab.) $ 300,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 Overview: The Liability Insurance Fund accounts are for contributions from departmental budgets to cover the cost of general liability claims, related legal costs, and the annual premiums required to participate in an insurance program through the California Joint Powers Insurance Authority (CJPIA). The amount of contributions from each department was based on their proportional share of the overall budget. $464
$704
$882
$957
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
$603 Revenues
$655
$527
$489
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
The City participates in the excess liability program offered by the JPA. Coverage in this program includes bodily injury, personal injury, or property damage to a third party resulting from a member activity, including automobile liability.

Employment practices liability is also a covered exposure. Claims for these programs are managed through a collaborative process with member communication and consultation. The California JPIA uses a third-party administrator to investigate and respond to all claims.

The excess liability program provides for optional member-retained limits of $150k, $250k, $500k, $750k, or $1 million. This program has a coverage limit of $50 million per occurrence, and is funded at the 70% – 80% confidence level. Members retain settlement authority over claims within their layer, except for certain defined claim types that have catastrophic potential.

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97 City of Pacific Grove Budget Dept Administrator
Enterprise Funds Public Works
Local Water Project - Fund 74
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Charges for Services $ 1,026,820 $ 967,200 $ 1,155,586 $ 1,000,000 $ 1,000,000 32,800 $ Transfers in 187,500 375,187 375,187 287,600 (87,587) - Interest / Other 3,113 4,000 3,000 1,500 (2,500) 1,500
Total Revenues / Transfers 1,217,433 1,346,387 1,533,773 1,289,100 (57,287) 1,001,500 Expenses / Transfers
Service and Supplies 766,270 804,476 1,200,629 818,657 14,181 859,940 Transfers Out 350,000 350,000 350,000 (350,000) - -
Debt Service 205,778 206,449 206,448 206,448 206,448 (1) Total Expenses / Transfers 1,322,048 1,360,925 1,757,077 1,025,105 (335,820) 1,066,388 Net Change (104,615) (14,538) (223,304) 263,995 278,533 (64,888) Available Ending Reserves $ 42,876 $ 28,338 $ (180,428) $ 83,566 $ 55,228 $ 18,678 Debt Coverage (125%-Policy) 121% 114% 13% 140% 109%
Overview:

The mission of the Local Water Project (LWP) is to provide non-potable, recycled water for irrigation purposes; and assist in the region in meeting local water supply demands.

The City entered into an agreement with PERC Water to design and build the Local Water Project to replace approximately 123 acrefeet/year (.11 million gallons annual daily average) of irrigation demands with non-potable supplies for the irrigation of the Municipal Golf Links and the El Carmelo Cemetery and provide toilet flushing for two public restrooms. The transfers in shown below reflect the transfer of water entitlement sale revenue from the General Fund. This includes funds related to promissory note proceeds and some additional contributions. The transfer out reflects the repayment of the Sewer Interfund Loan.
$10
$20
$30
$63
$11
$21
$31
$53
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues
$43
$(180)
$84
$19
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PGCC 6-4-25
98 City of Pacific Grove Budget Dept Administrator
Enterprise Funds Public Works
Cemetery - Fund 75
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Sales and Services $ 716,931 $ 625,000 $ 654,555 $ 556,372 $ (68,628) $ 472,916 Interest Income 47,725 28,000 32,138 23,139 (4,861) 23,139 Transfer In - - - - - -
Total Revenues / Transfers 764,656 653,000 686,693 579,511 (73,489) 496,055 Expenses
Salaries and Benefits 164,940 315,699 280,273 350,409 34,710 367,822 Service and Supplies 291,189 254,150 269,390 342,000 87,850 360,450 Capital Outlay / Improvements 3,175 6,670 - 3,500 3,500 3,500 Transfers Out - - - - - -
Indirect Cost Allocation 99,000 149,000 149,000 149,000 163,900 - Other Expenses 1,227 1,500 1,678 3,200 1,700 3,520
Total Expenses 559,532 720,349 707,011 848,109 127,760 899,192 Net Change 205,125 (67,349) (20,318) (268,598) (201,249) (403,137) Available Ending Reserves $ 1,100,618 $ 1,033,269 $ 1,080,300 $ (221,567) 811,702 $ $ 408,565 Overview:

The City operates and maintains the El Carmelo Cemetery. The City coordinates with area mortuaries and other individuals for services at the cemetery. Some of current and future initiatives for the cemetery include: launching the Public Portal for the Cemetery website to provide genealogy information, as well as available site data, considering and evaluating options for leasing or rental of the Little Chapel, and initiating RFP or work with a consultant on a Cemetery Master Plan.
$765
$687
$580
$496
$560
$707
$848
$899
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses Revenues
$1.1
$1.1
$0.8
$0.4
2023-24
2024-25
2025-26
2026-27 In Millions
Ending Available Reserves
PGCC 6-4-25
99 City of Pacific Grove Budget Dept Administrator
Enterprise Funds Public Works
Sewer - Funds 76 and 78
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Sales and Services $ 3,829,192 $ 3,773,000 $ 4,102,537 $ 3,923,000 $ 150,000 $ 3,923,000 Transfers in 350,000 - 350,000 (350,000) - -
Interest Income 248,341 128,000 245,569 176,809 48,809 176,809 Market Value Gain 119,882 - - - - -
Sewer Loans Revenues - - - - - -
Total Revenues / Transfers 4,197,415 4,251,000 4,698,106 4,099,809 (151,191) 4,099,809 Expenses / Transfers
Salaries and Benefits $ 150,802 $ 952,515 $ 912,186 $ 1,153,686 $ 201,171 $ 1,212,097 Service and Supplies 1,074,743 1,212,794 1,212,794 1,275,769 1,315,769 62,975 Transfers Out - - 25,000 - 25,000 25,000
Indirect Cost Allocations 276,000 353,000 353,000 353,000 353,000 - Debt Service 86,814 89,689 89,689 87,814 (1,875) 86,813 Capital Improvements 3,424,637 - 3,424,637 1,050,000 (2,374,637) 7,350,000 Sewer Loans Expenses - - - - - -
Total Expenses / Transfers 1,588,358 6,032,635 5,992,306 3,945,269 (2,087,366) 10,342,679 Net Change 2,609,057 (1,781,635) (1,294,200) 154,540 1,936,175 (6,242,870) Operations/Capital(76) 8,370,952 3,980,260 7,076,752 7,231,292 3,251,031 988,422 Lateral Loans (78) 166,928 166,928 166,928 166,928 166,928 - Available Ending Reserves $ 8,537,880 $ 4,147,188 $ 7,243,680 $ 7,398,220 $ 3,251,031 $ 1,155,350 Reserve Target (2 Yr CIP) $ 500,000 $ 500,000 $ 8,400,000 $ 8,400,000 N/A 2,100,000 $ Debt Coverage (Min 125%) 3105% 1932% 2475% 1472% N/A 1375% Overview:

The City will continue to implement sewer pipeline repair and replacement projects in strategic locations with planned storm drainage improvements.

The City owns and maintains the sanitary sewer system that collects and delivers sewage to the Monterey One Water treatment facility. In addition to performing maintenance activities, the City also manages the Sewer Lateral Loan Program which provides low-interest loans of up to $10,000 to repair or replace private sewer lateral facilities. It should also be noted that the revenues for this fund were also pledged as collateral for the State Loan received by the Local Water Project Fund.
$4.2
$4.7
$4.1
$4.1
$1.6
$6.0
$3.9
$10.3
2023-24
2024-25
2025-26
2026-27 In Millions
Revenues vs Expenses
Expenses
$8.5 Revenues
$7.2
$7.4
$1.2
2023-24
2024-25
2025-26
2026-27 In Millions
Ending Available Reserves
PGCC 6-4-25
100
City of Pacific Grove Budget Dept Administrator
Enterprise Funds Public Works
Golf - Fund 77
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Lease/Concession $ 745,216 $ 758,000 $ 931,082 $ 940,815 $ 182,815 $ 961,426 Interest Income 92,410 4,000 21,838 15,723 $ 11,723 15,723 Total Revenues 837,625 762,000 952,920 956,538 194,538 977,149 Expenses
Service and Supplies 196,971 355,000 553,776 606,585 $ 251,585 607,736 Debt Service 262,163 272,057 272,057 272,097 $ 272,097 40 Indirect Cost Allocation 10,000 20,000 20,000 20,000 $ 20,000 - Capital Contribution 88,000 88,000
Capital Improvements 108,000 15,946 108,000 40,000 $ (68,000) - Total Expenses 485,080 755,057 953,833 1,026,682 183,625 987,833 Net Change 352,546 6,943 (70,144) (913) 10,913 (10,684) Available Ending Reserves $ 867,594 $ 874,537 $ 866,681 $ 796,538 $ (77,999) $ 785,854 Reserve Target (25% Revenues) 209,000 191,000 238,000 239,000 N/A 244,000 Debt Coverage (125%-Policy) 241% 142% 139% 100% N/A 100% Overview:

The mission is to provide outstanding and memorable golf experiences for City residents and visitors with a business model that provides discounted golf for residents and a direct economic benefit to the community in the form of revenue for general City services.

The City contracts the services of the golf course to CourseCo Inc. for the management and operations of the golf course and related facilities. Golf operations are funded entirely through golf fee revenues. CourseCo is responsible for managing:
• The 18-hole golf course
• Driving range
• Putting greens
• Clubhouse
$838
$953
$957
$977
$485
$954
$1,027
$988
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues $868
$867
$797
$786
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PGCC 6-4-25
101
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Administrative Services
Special Activities Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Hyperbaric Chamber $ 12,479 $ 11,000 $ 10,377 $ 11,491 $ 11,491 491 $ Environmental Enhancement 5,879 1,000 3,891 2,802 1,802 2,802 Downtown Business District 39,015 31,750 32,055 31,760 31,760 10 Hospitality Imp. District 559,658 663,900 545,327 514,916 (148,984) 540,566 Reiko Koo Estate Donations 1,114 300 676 487 187 487
Total Revenues / Transfers 618,145 707,950 592,326 561,455 (146,495) 587,105 Expenses / Transfers
Hyperbaric Chamber 15,218 24,000 18,839 17,250 (6,750) 17,250 Environmental Enhancement - - - - - -
Downtown Business District 19,404 31,000 33,500 33,500 33,500 2,500 Hospitality Imp. District 567,201 601,400 542,666 528,200 (73,200) 554,560 Reiko Koo Estate Donations 2,193 - 2,193 (2,193) - -
Total Expenses / Transfers 601,823 658,593 597,198 578,950 (79,643) 605,310 Net Change 16,322 49,357 (4,872) (17,495) (66,852) (18,205) Ending Available Reserves
Hyperbaric Chamber (04) 28,729 15,729 20,267 14,508 (1,221) 8,750 Environmental Enhancement (05) 119,676 120,676 123,567 126,369 129,170 5,693 Downtown Business District (09) 30,085 30,835 28,640 26,900 (3,935) 25,159 Hospitality Imp. District (10) 63,886 1,386 4,047 (9,237) (73,123) (23,231) Reiko Koo Estate Donations (93) 2,877 1,360 984 1,847 2,333 863 Available Ending Reserves $ 182,753 $ 232,110 $ 177,881 $ 160,386 $ (71,724) $ 142,181 Overview: This fund in the ACFR combines the smaller restricted funds related to this category, including:

Hyperbaric Chamber (Fund 04) - receives fees and donations to fund chamber oxygen therapy operations, which provide emergency medical treatment to divers injured in the Monterey Bay Sanctuary.

Environmental Enhancement Fund (Fund 05) - accounts are for revenues associated with Coastal Area Planning grants, coastal area land use, and Environmental Impact Report deposit funds.

Downtown Business District (BID) (Fund 09) - accounts for the collection of fees from businesses within the Business Improvement District through their business licenses which go to the Pacific Grove Chamber of Commerce.

Hospitality and Tourism Improvement District (HID) (Fund 10) – accounts for fees received from hotels as part of their transient occupancy tax payments, with half of the assessment going to the Monterey County Convention and Visitor's Bureau and the other half going to the Pacific Grove Chamber of Commerce.

Reiko Koo Estate Donations (Fund 93) - accounts are for estate proceeds bequeathed to the City from Reiko Koo. There are no restrictions on the use of the funds.

PGCC 6-4-25
102
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Administrative Services
American Rescue Plan (ARPA) Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Grants - - - - - -
Interest / Other $ 49,418 $ 15,000 $ 15,395 $ (15,000) - $ - Total Revenues / Transfers 49,418 15,000 15,395 (15,000) - - Expenses / Transfers
Service and Supplies 4,451 117,561 - - - -
Capital Outlay /
Improvements 223,963 828,872 793,003 (828,872) - -
Transfers Out - - - - - -
Total Expenses / Transfers 228,414 828,872 910,564 (828,872) - - Net Change (178,996) (813,872) (895,169) 813,872 - -
Available Ending Reserves
ARPA (84) 895,169 81,297 (0) (81,297) (0) (0)
Available Ending Reserves $ 895,169 $ 81,297 $ (0) $ (81,297) (0) $ $ (0) Overview: The City qualified for funding under the American Rescue Plan Act of 2021 (ARPA) which provided relief for individuals and businesses affected by the coronavirus pandemic. The City’s allocation totals $3.7 million with the first half of the allocation received in Fiscal Year 21/22 and the second half was received in Fiscal Year 22/23. The amount included in the budget includes projects that were carried forward from the prior years.
$49
$15
$-
$-
$228
$911
$-
$-
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses Revenues $895
$(0)
$(0)
$(0)
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PGCC 6-4-25
103
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Administrative Services
Grants and Donations Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Grants
Operating Grants $ 487,421 $ - $ - $ - $ - $ -
Operating Donations 5,335 2,400 1,002,365 3,285 999,965 2,365 Coastal Conservancy Grant 6,839 4,210 - 3,031 3,031 3,031 ASBS 2,507 - - - - -
Total Revenues / Transfers 502,102 2,400 1,005,396 7,495 1,002,996 5,396 Expenses / Transfers
Operating Grants 489,754 - - - $ - -
Operating Donations - - 1,075,000 - 1,075,000 -
Coastal Conservancy Grant - - - - - -

ASBS - - - - - -
Total Expenses / Transfers 489,754 - 1,075,000 - 1,075,000 - Ending Available Reserves
Operating Grants (30) (1,651) (1,651) (1,651) (1,651) (1,651) - Operating Donations (31) 69,810 72,210 73,095 (71,750) 460 2,825 Coastal Conservancy Grant (69) 89,483 89,483 93,693 96,724 7,241 99,755 ASBS (79) 26,137 26,137 26,137 26,137 26,137 -
Available Ending Reserves $ 186,179 183,779 $ $ 191,274 $ 121,670 (64,509) $ 127,067 Overview: This combined fund in the ACFR includes :

Operating Grants (Fund 30) - accounts for grants from governmental agencies to support a variety of public services including police, fire, community development, parks, recreation, and museum facilities.

Operating Donations (Fund 31) - accounts are for donations to support a variety of public services including police, fire, parks, recreation; and library services and facilities.

Coastal Conservancy Grant (Fund 69) - receives grant proceeds from the Coastal Conservancy to fund coastal conservancy related projects and plans that maintain and improve beaches and coastal parks.

Areas of Special Biological Significance (ASBS) (Fund 79) - accounts for grants from Proposition 84 through the State Water Resources Control Board (SWRCB) to fund a variety of water quality improvement projects.
$502
$7
$1,005
$5
$490
$-
$1,075
$-
2023-24
2024-25
2025-26
2026-27 In ThousandsRevenues vs Expenses
Expenses
$184 Revenues
$191
$122
$127
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PGCC 6-4-25
104
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Fire
Fire Emergency Equipment
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Interest Income $ 6,354 $ 3,200 $ 6,354 $ 4,575 $ 1,375 $ 4,575 Other Revenue 23,376 24,000 19,355 20,000 20,000 (4,000) Total Revenues / Transfers 29,729 27,200 25,709 24,575 24,575 (2,625) Expenses / Transfers
Services - - - - - -
Supplies 12,880 5,527 12,880 (12,880) - 12,880
Capital Outlay 33,200 - 100,000 33,200 66,800 -
Total Expenses / Transfers 46,080 5,527 100,000 46,080 53,920 12,880 Net Change (18,880) 24,203 (20,371) (75,425) (56,545) 11,695 Available Ending Reserves
Fire Emergency Equipment (12) $ 195,633 $ 176,753 $ 175,262 $ (76,916) 99,837 $ $ 111,532 Available Ending Reserves $ 195,633 $ 176,753 $ 175,262 $ (76,916) 99,837 $ $ 111,532 Overview: This fund accounts are for grants, fees, and donations in support of activities and equipment. $30
$26
$25
$25
$6
$46
$100
$13
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues
$196
$175
$100
$112
2023-24
2024-25
2025-26
2026-27 Thousands
Ending Available Reserves
PGCC 6-4-25
105
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Community Development
Housing and Community Development
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Housing $ 68,734 $ 27,000 $ 36,295 $ 26,132 26,132 (868) $ Senior Housing 856 - 527 379 379 379
CDBG 50,473 10,000 40,936 29,474 19,474 29,474
CalHome Reuse 35,273 4,000 31,172 22,444 18,444 22,444
General Plan Maint. 8,230 10,200 7,846 9,708 (492) 9,708 Total Revenues / Transfers 163,566 51,200 116,776 88,138 36,938 88,138 Expenses / Transfers
Housing 137,062 273,718 115,867 156,883 (116,835) 162,852 Senior Housing - - - - - -
CDBG (67,524) 20,000 191,600 283,401 263,401 20,000
CalHome Reuse 24,000 - 24,000 24,000 24,000 -
General Plan Maint. - - - - - -
Total Expenses / Transfers 69,538 317,718 331,467 464,284 146,566 206,852 Net Change 94,028 (266,518) (214,691) (376,146) (109,628) (118,714) Ending Available Reserves
Housing (15) 382,002 135,284 302,430 171,680 36,396 8,828 Senior Housing (28) 11,194 11,194 11,721 12,100 38,233 906 CDBG (34) 580,244 570,244 429,580 175,653 (394,591) 156,033 CalHome Reuse (36) 267,470 247,470 274,642 273,086 25,616 278,560 General Plan Maint. (55) 8,230 18,430 16,076 25,784 7,354 48,228 Available Ending Reserves $ 1,249,140 $ 982,622 $ 1,034,449 $ (324,318) 658,304 $ $ 529,881 Overview: This fund combines some of the smaller restricted funds related to this category, including the following:

Housing (Fund 15) - for the administration of housing loan activities.

CalHome Reuse (Fund 36) - accounts for grants from the California Department of Housing and Community Development (HCD) to enable low and very low-income households to become or remain homeowners. Assistance includes deferredpayment loans for down payment assistance and home rehabilitation that are payable on sale or transfer of homes or when they cease to be owner occupied, or at maturity.

Community Development Block Grant (CDBG) (Fund 34)- accounts for revolving loans originally funded through the U.S.

Housing and Urban Development Department for low-to-moderate income persons. The City is considered a nonentitlement jurisdiction (i.e. population under 50,000) and thus does not receive annual funding. All future revolving loans are made using repayments of prior housing loans.

Senior Housing (Fund 28) - accounts for contributions to develop and maintain senior housing opportunities.

General Plan Maintenance (Fund 55) - accounts for fees collected to maintain the City’s General Plan.

PGCC 6-4-25
106
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Administrative Services -
State Franchise PEG Information Services
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Grants $ 46,594 $ 47,000 $ 47,000 $ 47,000 $ 47,000 - $ Interest Income 3,015 1,000 3,015 2,171 1,171 2,171
Other Revenue 1,502 - - - - -
Total Revenues / Transfers 51,111 48,000 50,015 49,171 1,171 49,171 Expenses / Transfers
Salaries and Benefits - - - - - -
Service and Supplies 26,000 81,000 82,000 60,000 (21,000) 60,000 Capital Outlay - - 60,000 - 60,000 -
Total Expenses / Transfers 26,000 81,000 82,000 120,000 39,000 60,000 Net Change 25,111 (33,000) (31,985) (70,829) (37,829) (10,829) Available Ending Reserves
State Franchise PEG (06) 116,177 83,177 84,192 13,363 (69,814) 2,534 Available Ending Reserves $ 116,177 $ 83,177 $ 84,192 $ 13,363 $ (69,814) $ 2,534 Overview: This fund accounts for funds received from the City's cable franchisee to support Public, Educational and Governmental (PEG) programming on local Public Access television. The fund supports equipment expenditures to aid in broadcasting based on the terms of the Digital Infrastructure and Video Competition Act of 2006. $51
$50
$49
$49
$26
$82
$120
$60
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues $116
$84
$13
$3
2023-24
2024-25
2025-26
2026-27 Thousands
Ending Available Reserves
PGCC 6-4-25
107
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Library
Library
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Library Building/Equipment $ 7,522 $ 3,000 $ 28,183 $ 17,292 $ 14,292 $ 27,292 Library Books 51,918 58,163 42,991 (16,009) 42,154 42,154 Poetry Promotion 42,502 36,120 43,302 42,232 6,112 42,232 Total Revenues / Transfers 101,942 97,283 114,476 101,677 111,677 4,394 Expenses / Transfers
Library Building/Equipment 71,410 38,000 38,000 45,000 7,000 28,000 Library Books 42,571 260 42,571 40,000 (2,571) 40,000
Poetry Promotion 13,620 20,000 15,000 (17,600) 2,400 2,400 Total Expenses / Transfers 100,571 85,290 95,571 (13,171) 87,400 70,400 Net Change 16,652 (3,288) 18,905 14,277 17,565 41,277
Ending Available Reserves
Library Building/Equipment (07)
72,346 37,346 62,529 34,821 (2,525) 34,113
Library Books (11) 39,310 54,902 39,730 (13,018) 41,884 44,037 Poetry Promotion (40) 149,336 165,456 177,638 217,470 52,014 257,302 Available Ending Reserves $ 260,992 $ 257,704 $ 279,897 $ 294,174 $ 36,470 $ 335,451 Overview: This fund combines some of the smaller
restricted funds related to this category, including the following:

Library Building and Equipment (Fund 07) - accounts for funds for library improvements and equipment.

Library Books (Fund 11) - receives funds for the specific purpose of purchasing books for the library.

Poetry Promotion (Fund 40) - receives funds to support
the promotion of poetry in the community.
$102
$114
$102
$112
$85
$96
$87
$70
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues $261
$280
$294
$335
2023-24
2024-25
2025-26
2026-27 Thousands
Ending Available Reserves
PGCC 6-4-25
108
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Public Works
Museum Improvement
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Donations $ - $ - $ - $ - $ - $ -
Interest Income 11,212 4,000 11,212 8,073 $ 4,073 8,073 Other Income 5,727 - - - $ - -
Total Revenues / Transfers 16,939 4,000 11,212 8,073 4,073 8,073 Expenses / Transfers
Salaries and Benefits - - - - $ - -
Service and Supplies - - - - $ - -
Capital Outlay / Projects 165,800 - 165,800 (165,800) - $ - Total Expenses / Transfers 165,800 - 165,800 (165,800) - - Net Change (161,800) 16,939 (154,588) 169,873 8,073 8,073 Available Ending Reserves
Museum Improvement (08) 344,823 183,023 190,235 198,308 15,285 206,380 Available Ending Reserves $ 344,823 $ 183,023 $ 190,235 $ 198,308 $ 15,285 $ 206,380 Overview: This fund accounts for donations designated for improvements to the museum. $17
$11
$8
$8
$-
$166
$-
$-
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues $345
$190
$198
$206
2023-24
2024-25
2025-26
2026-27 Thousands
Ending Available Reserves
PGCC 6-4-25
109
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Police
Police
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
DARE $ - 25 $ $ - $ - $ - $ -
Asset Seizure $ 420 $ 261 50 $ $ 188 $ 138 $ 188
Public Safety Augmentation 489,516 496,025 503,761 508,452 508,452 12,427 Supplemental Law Enforcement 201,191 277,000 278,999 277,879 277,879 879 Abandoned Vehicle Abatement 17,853 12,200 11,366 10,984 10,984 (1,216) Total Revenues / Transfers 709,004 785,275 794,387 797,503 797,503 12,228 Expenses / Transfers

DARE - - - - - -
Asset Seizure - - - - - -
Public Safety Augmentation 479,452 494,651 494,651 524,330 545,303 29,679 Supplemental Law Enforcement 250,512 281,646 198,999 277,879 277,879 (3,767) Abandoned Vehicle Abatement - - 40,000 - 40,000 -
Total Expenses / Transfers 729,964 776,297 693,650 842,209 823,182 65,912 Net Change (20,959) 100,736 8,978 (44,706) (53,684) (25,679) Ending Available Reserves
DARE (21) - - - - - -
Asset Seizure (22) 2,168 2,218 2,429 2,617 2,805 399
Public Safety Augmentation (42) 73,726 75,100 82,836 66,958 30,107 (8,142) Supplemental Law Enforcement (43) 48,914 128,914 44,268 128,914 128,914 84,646 Abandoned Vehicle Abatement (45) 39,791 51,991 51,157 (29,850) 22,141 33,124 Available Ending Reserves $ 164,599 $ 173,577 $ 265,335 $ 220,629 $ 194,949 47,052 $ Overview: This fund combines some of the smaller restricted funds related to this category, including the following:

Asset Seizure (Fund 22) - accounts for asset forfeitures seized by law enforcement agencies, to be used to support narcotic investigation courses, equipment, or supplies.

Public Safety Augmentation (Fund 42) - accounts for revenue from Proposition 172 public safety sales tax to pay for a contract for 911 emergency dispatch services.

Supplement Law Enforcement Services (Fund 43) – partially funds the costs of a School Resource Officer, with additional funding from the school district.

Abandoned Vehicle Abatement (Fund 45) - Monterey County receives a $1 tax on vehicle registrations. The City is reimbursed based on each abandoned vehicle.

PGCC 6-4-25
110
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Public Works
City Facilities
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Carillon $ 796 $ 150 $ 490 $ 353 $ 203 $ 353
Chautaqua Hall 1,225 - 754 543 543 543
Lighthouse 127,997 90,000 120,815 126,916 36,916 135,351 Yount Income 9,068 8,500 8,674 8,485 8,485 (15)
Strong Disbursement 14,459 40,500 - (40,500) - -
McIndoo 2,664 500 1,621 1,167 667 1,167
Total Revenues / Transfers 156,208 139,650 132,354 137,464 (2,186) 145,899 Expenses / Transfers
Carillon - - - - - -
Chautaqua Hall - - - - - -
Lighthouse 99,058 199,450 190,903 131,908 (67,542) 133,946 Yount Income - - 24,997 - 24,997 -
Strong Disbursement 65,000 - 65,000 (65,000) - -
McIndoo 17,387 - 23,006 - 23,006 -
Total Expenses / Transfers 116,445 264,450 255,903 179,911 (84,539) 133,946 Net Change 39,763 (124,800) (123,549) (42,447) 82,353 11,953 Ending Available Reserves
Carillon (03) 10,421 10,571 10,911 11,264 11,617 693
Chautaqua Hall (26) 16,022 16,022 16,776 17,319 1,297 17,862 Lighthouse (27) 223,970 114,520 153,882 148,890 34,370 150,295 Yount Income (41) 16,408 24,908 25,082 8,570 (16,338) 17,056 Strong Disbursement (46) 43,864 19,364 (21,136) (21,136) (40,500) (21,136) McIndoo (92) 22,133 22,633 23,754 1,915 (20,718) 3,082
Available Ending Reserves $ 332,818 $ 208,018 $ 209,268 $ 166,822 $ (41,196) $ 178,775 Overview: This fund in the ACFR combines some smaller restricted funds in this category, including:

Carillion (Fund 03) - accounts are for donations designated for the maintenance of the tower clock and chimes system at City Hall.

Chautauqua Hall (Fund 26) - was built in 1881 and was designated a State Historical Landmark. The fund accounts for donations received that are used to support building maintenance.

Lighthouse (Fund 27) - accounts for any expenses and/or any revenues, donations or operating transfer receipts related to the operations and maintenance of the Point Pinos Lighthouse.

Yount Income (Fund 41) - accounts for the expendable portion to be used for beautification of the city and for minor improvements to educational and/or recreational facilities.

Strong Disbursement (Fund 46)- accounts for Bertha Strong foundation funds for civic improvements.

McIndoo Donation (Fund 92) - accounts for the receipt of a donation from the Jeanette J. Mclndoo Trust for enhancement of public facilities and grounds.

PGCC 6-4-25
111
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Public Works
Streets
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Measure X $ 825,955 $ 840,000 $ 800,848 $ 784,575 $ (55,425) $ 784,575 Gas Tax 409,085 382,000 408,453 416,426 34,426 426,993
RSTP 69,450 650,856 650,856 (650,856) - -
RMRA 407,477 374,839 397,560 418,540 43,701 400,628
Total Revenues / Transfers 1,711,967 2,247,695 2,257,717 1,619,540 (628,155) 1,612,195 Expenses / Transfers
Measure X 943,822 1,757,037 1,757,037 820,000 (937,037) 818,000 Gas Tax 328,648 474,834 438,812 519,187 44,353 536,452
RSTP 650,856 - 650,856 (650,856) - -
RMRA 103,442 891,114 891,114 570,096 (321,018) 400,000
Total Expenses / Transfers 1,375,912 3,773,841 3,737,819 1,909,283 (1,864,558) 1,754,452 Net Change (1,526,146) 336,055 (1,480,102) (289,743) 1,236,403 (142,257) Ending Available Reserves
Measure X (17) 1,036,890 119,853 80,701 45,276 (74,577) 11,850 Gas Tax (18) 261,121 168,287 230,762 128,001 (40,286) 18,542 RSTP (20) - - - - - -
RMRA (47) 645,210 128,935 151,656 (128,835) 100 727
Available Ending Reserves $ 1,943,221 $ 417,075 $ 463,119 $ 173,376 $ (243,699) $ 31,119 Overview: This fund combines some of the smaller restricted funds related to this category, including the following:

Local Streets and Roads (Measure X) (Fund 17) - authorizes TAMC to impose and administer the proceeds from a three-eighths cent transaction and use tax to pay for pedestrian and vehicular transportation projects. Measure X has a maintenance of Effort requirement that is the higher of either the most recent three year average or the amount spent in 2017, whichever is higher (the latter applies to the City).

Gas Tax (Fund 18) - accounts are for revenues utilized for street-related operating and capital project costs.

Regional Surface Transportation (RSTP) (Fund 20) - receives federal grant funding from the Transportation Agency for Monterey County (TAMC) for projects including bicycles, pedestrians, local roads, and transit.

Road Maintenance and Rehabilitation Account (RMRA) (Fund 47) - These revenues are generated from increased gas tax, diesel excise and sales tax; and a zero-emission vehicle registration fee for local transportation projects. Funding has a maintenance of effort (MOE) requirement similar to Measure X.

PGCC 6-4-25
112
City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Public Works -
Recreation Recreation
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Stillwell Children's Pool $ 3,624 $ 500 $ 2,229 $ 1,605 $ 1,105 $ 1,605 Recreation Donations - - 48,000 - 48,000 -
Total Revenues / Transfers 3,624 500 49,605 2,229 49,105 1,605 Expenses / Transfers
Stillwell Children's Pool 11,756 - 18,000 7,535 18,000 8,000 Recreation Donations - - 38,000 - 38,000 -
Total Expenses / Transfers 11,756 - 56,000 7,535 56,000 8,000 Net Change (8,132) 500 (5,306) (6,395) (6,895) (6,395)
Ending Available Reserves
Stillwell Children's Pool (24) 35,491 35,991 30,185 (22,201) 13,790 7,395 Recreation Donations (25) 46,915 46,915 46,915 56,915 10,000 56,915 Available Ending Reserves $ 82,406 $ 82,906 $ 77,100 $ (12,201) 70,705 $ $ 64,310 Overview: The City has several small funds that are included in the balances reported in the Recreation Fund in the City's Annual Comprehensive Annual Financial Report (ACFR), including the following:

Stillwell Children’s Pool (Fund 24) - accounts are for the operation of the pool at Lover’s Point.

Recreation Donations (Fund 25) - accounts for donations to supporting the Youth Center and for the Take Part program, providing financial assistance to City families to participate in recreation programs.
$12
$8
$56
$8
$4
$2
$50
$2
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues $82
$77
$71
$64
2023-24
2024-25
2025-26
2026-27 Thousands
Ending Available Reserves
PGCC 6-4-25
113
City of Pacific Grove Budget Dept Administrator
Capital Projects Funds Public Works
General Fund CIP - Fund 63
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Transfers In $ 750,000 $ 3,017,033 $ 3,017,033 $ 500,000 $ (2,517,033) $ 500,000 Interest Income 9,281 - 9,281 6,682 6,682 6,682
Grants 110,948 - - - - -
Capital Contributions 67,500 - - (67,500) - -
Other Reimbursements 29,772 - - - - -
Total Revenues 900,002 3,084,533 3,026,314 506,682 (2,577,851) 506,682 Expenses
Salary and Benefits - - - - - -
Service and Supplies 1,528 - - - - -
Capital Outlay 93,684 - 150,000 - 150,000 350,000
Capital Improvements 467,219 1,937,033 1,937,033 500,000 (1,437,033) 500,000 Total Expenses 562,432 1,937,033 1,937,033 650,000 (1,287,033) 850,000 Net Change 337,570 1,147,500 1,089,281 (143,318) (1,290,818) (343,318) Available Ending Reserves $ 361,196 $ 1,508,696 $ 1,450,477 $ 1,307,159 $ (201,537) $ 963,842 Overview: The General Fund Capital Improvement Program (CIP) accounts for capital projects funded fully or in part with discretionary general fund revenues. These projects are distinct from projects funded by Special Revenue, Enterprise Funds or Restricted Funds.
$900
$3,026
$507
$507
$562
$1,937
$650
$850
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues
$361
$1,450
$1,307
$964
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PGCC 6-4-25
114
City of Pacific Grove Budget Dept Administrator
Permanent Funds Library
Library Endowment Trust - Fund 85
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Interest Income $ 18,252 $ 12,000 $ 18,252 $ 13,141 $ 1,141 $ 13,141 Other Revenues 24,944 10,000 - (10,000) - -
Total Revenues / Transfers 43,196 22,000 18,252 13,141 (8,859) 13,141 Expenses / Transfers
Salaries and Benefits - - - - - -
Service and Supplies - - - - - -
Capital - - - - - -
Transfers Out - - - - - -
Total Expenses / Transfers - - - - - -
Net Change 43,196 22,000 18,252 13,141 (8,859) 13,141
Available Ending Reserves $ 565,637 $ 587,637 $ 583,889 $ 597,030 $ 610,172 9,393 $ Overview:

This fund accounts for donations and bequeaths for the benefit of Library materials and collections. $43
$18
$13
$13
$-
$-
$-
$-
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues $566
$584
$597
$610
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PGCC 6-4-25
115
City of Pacific Grove Budget Dept Administrator
Permanent Funds Public Works
Cemetery Endowment Trust - Fund 86
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Sales and Services $ 74,216 $ 76,000 $ 75,000 $ 76,000 $ 79,800 - $ State Grant -
Interest Income 103,711 37,000 37,000 37,000 - 38,900
Total Revenues / Transfers 177,927 113,000 112,000 113,000 118,700 - Expenses / Transfers
Salaries and Benefits - - - - - -
Service and Supplies - - - - - -
Transfers Out - - - - - -
Total Expenses / Transfers - - - - - -
Net Change 177,927 113,000 112,000 113,000 118,700 -
Available Ending Reserves $ 2,145,254 $ 2,258,254 $ 2,257,254 $ 2,370,254 $ 112,000 $ 2,488,954 Overview:

This fund accounts for revenues paid for the El Carmelo Cemetery endowment care, perpetual expenses; and the general preservation of burial sites, grounds, walking paths, roadways, boundaries and structures.
$178
$112
$113
$119
$-
$-
$-
$-
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses Revenues
$2,145
$2,257
$2,370
$2,489
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PGCC 6-4-25
116
City of Pacific Grove Budget Dept Administrator
Permanent Funds Public Works
Yount Trust - Fund 90
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Sales and Services $ - $ - $ - $ - $ - $ -
State Grant - - - - $ - -
Interest Income 16,675 8,000 8,000 8,000 $ - 8,000
Total Revenues / Transfers 16,675 8,000 8,000 8,000 - 8,000 Expenses / Transfers
Salaries and Benefits - - - - $ - -
Service and Supplies - - - - $ - -
Transfers Out 8,000 8,000 8,000 8,000 $ - 8,000
Total Expenses / Transfers 8,000 8,000 8,000 8,000 - 8,000 Net Change 8,675 - - - - -
Available Ending Reserves $ 781,371 $ 781,371 $ 781,371 $ 781,371 $ 781,371 - $ Overview:

This fund accounts for interest income from a non-expendable trust fund.

The actual interest earned is transferred to the Yount Income Fund to support beautification of the City and minor improvements to education and/or recreational facilities.
$17
$8
$8
$8
$8
$8
$8
$8
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses Revenues $781
$781
$781
$781
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PGCC 6-4-25
117
City of Pacific Grove Budget
Employees by Department
Through Fiscal Year 2026-27
Department / Funding Source FTEs Part-Time FTEs Part-Time FTEs Part-Time FTEs Part-Time City Council (General Fund) 7.00 7.00 7.00 7.00
City Manager (General Fund) 4.43 5.18 5.18 5.18
Administrative Services
General Fund 9.52 9.67 9.67 9.67
Cemetery 1.00 1.00 1.00 1.00
Worker's Compensation 0.30 0.35 0.35 0.35
Liability 0.20 0.25 0.25 0.25
Subtotals 11.02 0.00 11.27 0.00 11.27 0.00 11.27 0.00
Community Development (General) 7.50 8.75 8.75 8.75
Police
General Fund 33.30 33.30 33.30 33.30
SLESF 0.70 0.70 0.70 0.70
Subtotals 34.00 0.00 34.00 0.00 34.00 0.00 34.00 0.00
Library (General Fund) 8.50 9.00 9.00 9.00
Recreation
General Fund 6.65 6.65 6.90 6.90
Lighthouse 2.25 2.25 2.25 2.25
Subtotals 6.65 2.25 6.65 2.25 6.90 2.25 6.90 2.25
Public Works
General Fund 18.45 1.00 20.45 1.37 19.60 1.37 19.60 1.37 Cemetery 1.30 0.25 1.30 0.25 1.30 0.25 1.30 0.25
Sewer 5.05 5.05 0.13 5.90 0.13 5.90 0.13
Gas Tax 1.35 1.35 1.35 1.35
Subtotals 26.15 1.25 28.15 1.75 28.15 1.75 28.15 1.75
Grand Total All Departments 98.25 10.50 103.00 11.00 103.25 11.00 103.25 11.00 Totals by Fund
General Fund 88.35 8.00 93.00 8.37 92.40 8.37 92.40 8.37 Other Funds 9.90 2.50 10.00 2.63 10.85 2.63 10.85 2.63
Total All Funds 98.25 10.50 103.00 11.00 103.25 11.00 103.25 11.00 * Note: the above excludes seasonal employees hired each year by the Recreation Department The amounts for the City Manager's department includes Economic Development The amounts for the Administrative Services department includes Information Services FY 23-24 FY 24-25 FY 25-26 FY 26-27

98.25 103.00 103.25 103.25

10.50 11.00 11.00 11.00
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Employees by Fiscal Year
Full-Time Part-Time
PGCC 6-4-25
118
City of Pacific Grove Budget
Employee Position Listing
Through Fiscal Year 2026-27
Adopted Amended Proposed Proposed
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Status Positions Pos. # FTE% FTE% FTE% FTE%
Part-time Council Member 002-000 6.00 6.00 6.00 6.00
Part-time Mayor 001-001 1.00 1.00 1.00 1.00
Total TOTAL CITY COUNCIL 7.00 7.00 7.00 7.00
Full-time City Manager 301 0.85 0.85 0.85 0.85
Full-time Human Resources Director 210 1.00 1.00 1.00 1.00 Full-time City Clerk 243 1.00 1.00 1.00 1.00
Full-time Management Analyst 208 1.18 1.18 1.00 1.00
Full-time Senior Accounting Assistant 125 0.00 0.00 0.18 0.18 Total TOTAL CITY MANAGER/ HUMAN RESOURCES/CITY CLERK 4.03 4.03 4.03 4.03 Full-time City Manager 301 0.15 0.15 0.15 0.15
Full-time Deputy City Manager 219 0.00 1.00 1.00 1.00
Full-time Associate Planner 168 0.25 0.00 0.00 0.00
Total TOTAL ECONOMIC DEVELOPMENT 0.40 1.15 1.15 1.15
Full-time Administrative Services Director 304 0.80 0.80 0.80 0.80 Full-time Senior Program Manager 206 0.65 0.65 0.65 0.65 Full-time Program Manager 219 0.75 0.75 0.75 0.75
Full-time Management Analyst 208 1.00 1.00 1.00 1.00
Full-time Accounting Assistant 120 0.75 0.75 0.75 0.75
Full-time Senior Accounting Assistant 125 1.67 1.67 1.67 1.67 Full-time Senior Accountant 218 1.00 1.00 1.00 1.00
Total TOTAL FINANCE - GENERAL FUND 6.62 6.62 6.62 6.62
Full-time Community Development Director 205 1.00 1.00 1.00 1.00 Full-time Code Compliance Officer 164 1.00 1.00 1.00 1.00 Full-time Associate Planner 168 1.75 2.00 2.00 2.00
Full-time Principal Planner 241 1.00 1.00 1.00 1.00
Full-time Office Assistant 136 0.50 0.50 0.50 0.50
Full-time Administrative Analyst 170 0.75 0.75 0.75 0.75 Full-time Management Analyst 208 0.50 0.50 0.50 0.50
Full-time Senior Program Manager 206 0.50 0.50 0.50 0.50 Full-time Office Assistant 136 0.50 0.50 0.50 0.50
Full-time Management Analyst 208 0.50 0.50 0.50 0.50
Full-time Senior Program Manager 206 0.50 0.50 0.50 0.50 Total TOTAL COMMUNITY DEVELOPMENT 8.50 8.75 8.75 8.75
Full-time Police Chief 602 1.00 1.00 1.00 1.00
Full-time Police Commander 601 2.00 2.00 2.00 2.00
Full-time Police Sergeant 524 4.00 4.00 4.00 4.00
Full-time Police Officer (1) 516 15.30 15.30 15.30 15.30 Full-time Management Analyst 208 1.00 1.00 1.00 1.00
Full-time Community Service Officer 507 3.00 3.00 3.00 3.00 Full-time Parking Enforcement Officer 506 1.00 1.00 1.00 1.00 Full-time Administrative Analyst 170 1.00 1.00 1.00 1.00 Full-time Property & Evidence Technician 509 1.00 1.00 1.00 1.00 Full-time Police Services Technician 508 4.00 4.00 4.00 4.00 Total TOTAL POLICE DEPARTMENT 33.30 33.30 33.30 33.30
PGCC 6-4-25
119
City of Pacific Grove Budget
Employee Position Listing
Through Fiscal Year 2026-27
Adopted Amended Proposed Proposed
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Status Positions Pos. # FTE% FTE% FTE% FTE%
Full-time Library Director 217 1.00 1.00 1.00 1.00
Full-time Librarian 208 3.50 2.75 2.75 2.75
Full-time Library Clerk 199 1.50 1.50 1.50 1.50
Full-time Administrative Analyst 170 0.75 1.00 1.00 1.00 Full-time Library Assistant2 122 0.75 0.75 0.75 0.75
Full-time Senior Library Assistant 144 1.00 2.00 2.00 2.00 Total TOTAL LIBRARY 8.50 9.00 9.00 9.00
Full-time Program Manager, Senior 206 1.00 1.00 1.00 1.00 Full-time Management Analyst 208 1.00 1.00 1.00 1.00
Full-time Administrative Services Director 304 0.05 0.05 0.05 0.05 Full-time It Support Specialist 105 1.00 1.00 1.00 1.00 Total TOTAL INFORMATION SERVICES 3.05 3.05 3.05 3.05
Full-time Public Works Director 207 0.20 0.20 0.20 0.20 Full-time Program Manager 219 1.00 1.00 1.00 1.00
Full-time Recreation Program Sup 620 0.75 0.75 0.75 0.75 Full-time Management Analyst 208 0.20 0.20 0.20 0.20
Full-time Recreation Coordinator 118 3.75 3.75 4.00 4.00 Full-time Office Assistant 104 0.75 0.75 0.75 0.75
Total TOTAL RECREATION - GENERAL FUND 6.65 6.65 6.90 6.90 Full-time Public Works Director 207 0.30 0.30 0.30 0.30 Full-time Deputy Director/ Civil Engineer 206 0.00 1.00 0.50 0.50 Full-time Construction Project Manager 209 0.10 0.10 0.10 0.10 Full-time Programs Manager 219 0.50 0.50 0.50 0.50
Full-time Program Manager, Senior 206 0.25 0.25 0.25 0.25 Full-time Superintendent 208 0.40 0.40 0.40 0.40
Full-time Equipment Mechanic 156 1.00 1.00 1.00 1.00
Full-time Equipment Mechanic, Senior 157 1.00 1.00 1.00 1.00 Full-time Maintenance Supervisor 154 0.50 0.50 0.50 0.50 Full-time Construction Project Manager 209 0.20 0.20 0.20 0.20 Full-time Maintenance Worker 132 8.20 8.20 8.20 8.20
Full-time Public Works Director 207 0.10 0.10 0.10 0.10 Full-time Maintenance Worker, Senior 146 0.95 0.95 0.50 0.50 Full-time Administrative Analyst 170 0.50 0.50 0.30 0.30 Full-time Maintenance Worker Senior 146 0.40 0.40 0.40 0.40 Full-time Program Manager, Senior 206 0.25 0.25 0.25 0.25 Full-time Construction Project Manager 209 0.20 0.20 0.20 0.20 Full-time Maintenance Worker 132 3.30 3.30 3.30 3.30
Full-time Public Works Director 207 0.05 0.05 0.05 0.05 Full-time Administrative Analyst 170 0.25 0.25 0.25 0.25 Full-time Administrative Technician 170 0.00 0.00 0.30 0.30 Full-time Urban Forester 206 0.00 1.00 1.00 1.00
Part-time Administrative Assistant 104 0.13 0.13 0.13 0.13 Part-time Custodian 115 0.50 0.50 0.50 0.50
Part-time Administrative Assistant 104 0.12 0.12 0.12 0.12 Part-time Administrative Assistant 104 0.12 0.12 0.12 0.12 Part-time Maintenance Worker 132 0.50 0.50 0.50 0.50
PGCC 6-4-25
120
City of Pacific Grove Budget
Employee Position Listing
Through Fiscal Year 2026-27
Adopted Amended Proposed Proposed
FY 23-24 FY 24-25 FY 25-26 FY 26-27
Status Positions Pos. # FTE% FTE% FTE% FTE%
Total TOTAL PUBLIC WORKS - GENERAL FUND 19.82 21.82 20.97 20.97 Full-time Maintenance Worker 132 0.80 0.80 0.80 0.80
Full-time Management Analyst 208 0.20 0.20 0.00 0.00
Full-time Maintenance Supervisor 154 0.20 0.20 0.20 0.20 Full-time Program Manager, Senior 206 0.05 0.05 0.00 0.00 Full-time Program Manager 0.00 0.00 0.25 0.25
Full-time Cemetery Office Assistant 136 1.00 1.00 1.00 1.00 Full-time Administrative Services Director 601 0.05 0.05 0.05 0.05 Part-time Maintenance Worker 132 0.25 0.25 0.25 0.25
Total TOTAL PUBLIC WORKS / ASD - CEMETERY 2.55 2.55 2.55 2.55 Full-time Deputy Director/ Civil Engineer 206 0.00 0.00 0.50 0.50 Full-time Programs Manager 217 0.50 0.50 0.50 0.50
Full-time Program Manager, Senior 206 0.50 0.50 0.50 0.50 Full-time Administrative Analyst 170 0.05 0.05 0.25 0.25 Full-time Construction Project Manager 209 0.50 0.50 0.50 0.50 Full-time Management Analyst 208 0.40 0.40 0.40 0.40
Full-time Maintenance Supervisor 154 1.30 1.30 1.30 1.30 Full-time Maintenance Worker Senior 146 0.35 0.35 0.50 0.50 Full-time Maintenance Worker 132 1.10 1.10 1.10 1.10
Full-time Public Works Director 207 0.35 0.35 0.35 0.35 Part-time Administrative Assistant 104 0.13 0.13 0.13 0.13 Total TOTAL PUBLIC WORKS - SEWER 5.18 5.18 6.03 6.03
Full-time Maintenance Worker Senior 146 0.30 0.30 0.30 0.30 Full-time Maintenance Worker 132 0.60 0.60 0.60 0.60
Full-time Administrative Analyst 170 0.45 0.45 0.45 0.45 Total TOTAL PUBLIC WORKS - GAS TAX 1.35 1.35 1.35 1.35
Part-time Lighthouse Docent Coordinator 50 1.00 1.00 1.00 1.00 Part-time Cashier 90 1.00 1.00 1.00 1.00
Part-time Maintenance Worker 132 0.25 0.25 0.25 0.25
Total TOTAL RECREATION - LIGHTHOUSE 2.25 2.25 2.25 2.25 Full-time Police Officer SLESF 516 0.70 0.70 0.70 0.70
Total TOTAL POLICE -SLESF 0.70 0.70 0.70 0.70
Full-time Senior Accounting Assistant 125 0.15 0.15 0.15 0.15 Full-time Program Manager, Senior 206 0.15 0.15 0.15 0.15 Full-time Administrative Services Director 304 0.05 0.05 0.05 0.05 Total TOTAL ASD - WORKERS COMP 0.35 0.35 0.35 0.35
Full-time Program Manager, Senior 206 0.20 0.20 0.20 0.20 Full-time Administrative Services Director 304 0.05 0.05 0.05 0.05 Total TOTAL ASD - RISK MANAGEMENT 0.25 0.25 0.25 0.25

99.50 103.00 103.25 103.25

11.00 11.00 11.00 11.00
110.50 114.00 114.25 114.25
Total Full-Time Employees
Total Part-Time Employees
Grand Totals All Departments
PGCC 6-4-25
121
City of Pacific Grove
Employee Compensation
Fiscal Years 2025-2026 and 26-27
Salaries
The City has established an employee compensation plan designed to attract and retain highly qualified individuals who deliver a high level of service.

As part of this compensation plan a wide range of benefits (depending on the bargaining unit or contract) are offered to its regular full-time and part-time employees. Salary schedules and employee bargaining group agreements are located on the web at cityofpacificgrove.gov.

Pension and Health Plans
Depending on their date of employment and their prior CalPERS enrollment, employees are enrolled in either the 3% at 60 (Classic Safety), 2% at 55 (Classic Miscellaneous), 2.7% at 57 (PEPRA Safety) or 2% at 62 plans (PEPRA Miscellaneous) with CalPERS.

Most new employees are enrolled in the lower cost 2% at 62 or 2.7% at 57 plans. The 2% at 62 plan is comparable to Social Security in costs for the City. Each year CalPERS adjusts its contribution rates for the City (and employees who are in PEPRA) as part of their actuarial reports.

The City purchases medical insurance through CalPERS at a lower cost, but with overall higher benefits to all employees. The City also provides the following additional benefits to its employees:
 Dental  Fitness Incentive
 Vision  Short Term Disability Insurance
 Group Life Insurance  Long Term Disability Insurance Currently, the City pays the full amount of health insurance premiums for the employee and a portion of the costs of premiums for their dependents.

Deferred Compensation Plans
The City also offers employees the option to defer part of their salary into a thirdparty IRS 457 Deferred Compensation Program up to the maximums allowed by the IRS. Certain bargaining employee groups, per their employment agreements, also have employee contributions (along with matching City contributions for eligible employees) into a third party defined contribution plan.

Paid Time Off (PTO) and Holidays
Employees can receive paid time off leave hours depending upon years of experience with the City, with the ability to cash out a portion of unused leave each year. In addition, employees receive nine paid holidays and six floating holidays each fiscal year.

PGCC 6-4-25
122
City of Pacific Grove Department Budgets
General Fund Operating Expenses by Department
FY 23/24
Actual
FY 24/25
Budget
FY 24/25
Estimated
FY 25/26
Estimated
FY 26/27
Estimated
Police 6,536,910 7,615,502 7,029,118 7,816,343 200,841 3% 8,234,744 Public Works 4,054,763 5,352,860 5,098,796 4,416,192 (936,668) -17% 4,578,799 Fire 3,313,322 3,599,600 3,632,149 3,734,497 134,897 4% 3,899,514 Community Development 2,444,041 3,213,158 3,150,469 2,439,320 (773,838) -24% 2,498,225 Recreation 1,145,986 1,554,839 1,488,636 1,792,832 237,993 15% 1,832,987 City Council 178,800 324,089 293,423 276,365 (47,724) -15% 339,800 City Manager 1,091,458 1,109,498 1,079,609 1,154,639 45,141 4% 1,191,399 Finance 1,351,030 1,355,331 1,396,091 1,371,823 16,492 1% 1,428,045 Information Services 817,924 1,202,362 1,132,879 1,327,725 125,363 10% 1,370,741 Library 1,000,084 1,097,776 1,097,750 1,203,659 105,883 10% 1,279,385 City Attorney 1,098,047 1,184,360 915,000 915,000 (269,360) -23% 915,000 Economic Development 298,842 393,321 264,458 454,615 61,294 16% 463,252 Museum 346,495 384,300 383,363 424,493 40,193 10% 441,843 Total GF Dept Expenses 23,677,702 28,386,996 26,961,741 27,327,503 (1,059,493) -4% 28,473,733 Department / Object Category
Variance from
CY Budget
Additional information on General Fund operating expenses by department, including proposed personnel changes and capital outlay contained in the departmental budgets, are discussed on subsequent pages of this document.

Community Development includes Building, Planning and Housing. Public Works includes Street Maintenance and Cleaning, Buildings and Grounds and Forestry. Note that Building, Fire, City Attorney and Museum services are provided on a contract basis to the City.
29%
16%
14%
9%
6%
4%
22%
FY 25-26 Operating Expenses by Dept
Police $7.8 million
Public Works $4.4 million
Fire $3.7 million
Community Development $2.4 million
Recreation $1.8 million
Library $1.2 million
Administration / Other $5.9 million
23%
22%
20%
15%
8%
7%
5%
FY 25-26 Administration / Other by Dept
Finance $1.4 million
Information Services $1.3 million
City Manager $1.2 million
City Attorney $0.9 million
Economic Development $0.5 million
Museum $0.4 million
City Council $0.3 million
PGCC 6-4-25
123
City of Pacific Grove Department Budgets
Administrative Services - Finance
Overview / Functional Organization Chart
Current Year Anticipated Accomplishments
• Interim Reports: Redesigned the financial, capital project, investment and check register reports • Hotel Tax Audit: Conducted an external audit
• Annual Financials: Received an award for excellence for the City’s Financials (ACFR) from GFOA • Budget: Received awards for the City’s operating budget from GFOA and CSMFO • Website: Enhanced the transparency of the department's section of the City's website Related Strategic Goals: Financial Sustainability
Proposed Goals for Next Two Years
• Interim Reports: Issue interim financial and investment reports on a quarterly basis • Accounting System: Select a vendor to assist the City with the selection of a new ERP system • Website: Continue to update the City website on a timely basis • Annual Financials: Submit for awards for excellence for the City’s Financials (ACFR/PAFR) • Budget: Submit for awards for excellence for the City’s operating and capital budgets Related Strategic Goals: Financial Sustainability
Department Head
Division Staffing Organization Chart
Division Managers
Administrative Services Director Senior Program Manager Senior Accountant
Senior Accounting Assistants
Program Manager
Supporting Staff
Accounting Assistant
Cemetery Office Assistant
Management Analyst
Mission: Assisting the City Council, City Manager and operating departments/programs in prudently managing financial resources and planning for the future by providing high quality information and financial management services for the City.

Division Overview: Finance oversees the stewardship of the City’s resources. The Division provides policy analysis, recommendations, and financial information to the City Council and departments.

Finance's core functions include accounting for the City’s resources and disclosure of the City’s financial condition in the annual comprehensive financial report with an independent audit. Finance also prepares and monitors the annual operating budget and revenue forecast, provides accounts payable and payroll services, and manages the City’s debt, investment, and banking affairs.

Finance
Risk
Mgmt /
Cemetery
Payroll
Cash and
Investments
Accounting
Responsibilities
Leases and
Grants
Budget
PGCC 6-4-25
124
City of Pacific Grove Department Budgets
Administrative Services - Finance
Financial and Staffing Summary - includes prorata portion of positions shared between divisions 23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 7.27 7.77 7.77 7.77 0.00 7.77
Part-Time Employees 0.75 0.75 0.75 0.75 0.00 0.75
Total Employees 8.02 8.52 8.52 8.52 0.00 8.52
General Fund (Dept 131) 1,351,030 $ $ 1,355,331 $ 1,396,091 $ 1,371,823 $ 1,428,045 16,492 $ Total Expenses 1,351,030 $ $ 1,355,331 $ 1,396,091 $ 1,371,823 $ 1,428,045 16,492 $ Salaries and Benefits $ 862,045 $ 918,231 $ 852,592 $ 958,967 $ 40,736 $ 998,269 Services 476,011 418,600 535,073 401,356 (17,244) 418,276 Supplies 12,974 18,500 8,426 11,500 (7,000) 11,500
Other Expenses - - - - - -
Total General Fund 1,351,030 $ $ 1,355,331 $ 1,396,091 $ 1,371,823 $ 1,428,045 16,492 $ Key Performance Indicators
Metric 19-20 20-21 21-22 22-23 23-24
Payroll Checks and Direct Deposits 3,147 2,641 2,937 3,057 3,127 Issued / Renewed Business Licenses 1,751 1,543 1,582 1,600 1,665 Issued Short-Term Rental Licenses N/A 87 92 80 95
CSMFO Budget Excellence Award X X X X X
GFOA Budget Award X X X X X
GFOA ACFR Award X X X X X
Related Strategic Goals: Financial Sustainability
Analysis: Non recurring consultant services expenses were incurred in the current fiscal year due to departmental staffing vacancies which have been filled. The budget includes increased internal service charges related to increases in insurance premiums and employee COLAs and step increases per MOUs. 70%
29%
1%
Dept Budget - General Fund
Personnel - $958,967
Services - $401,356
Supplies / Other - $11,500
$1.35
$1.40 $1.37
$1.43
23-24 24-25 25-26 26-27 Millions
Dept Expense Trends
PGCC 6-4-25
125
City of Pacific Grove Department Budgets
Administrative Services - Information Services
Overview / Functional Organization Chart
Current Year Anticipated Accomplishments
• Cybersecurity: Completed cybersecurity assessment project. • Door Access: Did an initial assessment for the city hall door access security system project • Disaster Recovery: Created business continuity plan and cyber security Incident response plan • Internet: Enhanced internet reliability and performance at the City Hall, PD, and Library • Security: Implemented door access system upgrade and controls & security cameras • GIS/Network: Completed network and server upgrades, implement maps application Related Strategic Goals: Infrastructure
Proposed Goals for Next Two Years
• Cybersecurity: Complete next phase of Cybersecurity Assessment project • City Hall Door Access: Conduct assessment for the City Hall door access security system project • Internet: Enhance internet reliability and performance at the City Hall, PD, and Library • Servers Upgrades: Upgrade servers and integrate into the storage area network • Security Cameras: Implement security cameras at certain key locations • Cloud Backup Solution: Implement cloud backup solution to enhance disaster recovery capabilities • GIS Maps Application: Implement GIS story maps application Related Strategic Goals: Infrastructure
IT Support Analyst
Division Staffing Organization Chart
Department Head
Administrative Services Director
Division Manager
Senior Program Manager
Supporting Staff
Management Analyst
Mission: Provide innovative and reliable technology solutions that support the city’s goals, enhance efficiency and
productivity, ensure data security and compliance, facilitate communication and collaboration, and drive continuous
improvement. We are committed to delivering exceptional technical support and maintaining a robust IT infrastructure that empowers our city to achieve excellence.

Division Overview: Key responsibilities of the division include providing technical support services, IT systems & network administration and management, cybersecurity, data
management, hardware and software management, and
constantly improving and implementing technology products and solutions.

Information
Services
Governance
Technical
Support
Services
Software
Management
Systems &
Network
Data
Management
Responsibilities
Cybersecurity
Technology
Projects
PGCC 6-4-25
126
City of Pacific Grove Department Budgets
Administrative Services - Information Services
Financial and Staffing Summary - includes prorata portion of positions shared between divisions 23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 3.05 3.05 3.05 3.05 0.00 3.05
Part-Time Employees
Total Employees 3.05 3.05 3.05 3.05 0.00 3.05
General Fund (Dept 133) 817,924 $ 1,202,362 $ $ 1,132,879 $ 1,327,725 $ 125,363 $ 1,370,741 Total Expenses 817,924 $ $ 1,202,362 $ 1,132,879 $ 1,327,725 $ 125,363 $ 1,370,741 Salaries and Benefits $ 322,175 $ 422,762 $ 437,079 $ 448,325 $ 25,563 $ 463,454 Services 426,845 459,700 478,500 590,600 130,900 752,986 Supplies 20,830 42,800 40,800 43,800 1,000 43,800
Capital Outlay 48,075 277,100 176,500 245,000 (32,100) 110,500 Total General Fund 817,924 $ $ 1,202,362 $ 1,132,879 $ 1,327,725 $ 125,363 $ 1,370,741 Key Performance Indicators
Metric 19-20 20-21 21-22 22-23 23-24
Closed Help Desk Requests N/A 2,491 3,447 1,850 2,668
Network Uptime % 99.2%
Systems Uptime % 98.9%
Website Uptime % 99.5%
Related Strategic Goals: Infrastructure
Analysis: Capital Outlay represents funds set aside primarily for cybersecurity enhancements. The personnel budget reflects projected employee step increases and COLAs per employee MOUs. Services represent software support for the City's various software platforms, including cloud based systems. Supplies include scheduled replacement of employees' computers.
34%
44%
22%
Dept Budget - General Fund
Personnel - $448,325
Services - $590,600
Supplies / Other - $288,800
$0.8
$1.1 $1.3 $1.4
23-24 24-25 25-26 26-27 Millions
Dept Expense Trends
PGCC 6-4-25
127
City of Pacific Grove Department Budgets
City Attorney
Overview / Functional Organization Chart
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget General Fund (Dept 111) 1,098,047 $ $ 1,184,360 $ 915,000 $ (269,360) 915,000 $ $ 915,000 Total Expenses 1,098,047 $ $ 1,184,360 $ 915,000 $ (269,360) 915,000 $ $ 915,000 Services $ 1,098,047 $ 1,184,360 $ 915,000 $ (269,360) 915,000 $ $ 915,000 Total General Fund 1,098,047 $ $ 1,184,360 $ 915,000 $ (269,360) 915,000 $ $ 915,000 Mission: Providing timely legal advice and support to the City through its officials, commissions and committees, represent the City’s Interest and positions before judicial and administrative agencies in civil proceedings, and enforce misdemeanor and civil violations of the Municipal Code. The City Attorney is a contract position.

Dept Overview: Key responsibilities of the department include acting as lead counsel for all civil actions filed by or against the City, maintaining a fiduciary responsibility to represent the City as a client within the mandates of the State Bar Rules of Professional Conduct, providing general advice to commissions, committees, individual officers, and employees, but may not represent their interests if in opposition to the interests of the City.

City Attorney
Timely
Legal
Advice
Enforce
Civil
Violations City Legal
Representative
Oversees
Municipal
Code
Responsibilities
Contract
Review
Lead
Counsel
$1,098
$915 $915 $915
23-24 24-25 25-26 26-27 Thousands
Dept Expense Trends
Analysis: The amounts projected for the next two fiscal years is based upon the historical averages for this department over the past several years, as there were several significant cases during the past two years that are not expected to reoccur in the future.
100%
Dept Budget - General Fund
Services - $915,000
PGCC 6-4-25
128
City of Pacific Grove Department Budgets
City Council
Overview / Functional Organization Chart
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Total Councilmembers 7.00 7.00 7.00 7.00 7.00 7.00
General Fund (Dept 101) 178,800 $ $ 324,089 $ 293,423 $ 276,365 $ (47,724) $ 339,800 Total Expenses 178,800 $ $ 324,089 $ 293,423 $ 276,365 $ (47,724) $ 339,800 Salaries and Benefits $ 40,296 $ 46,314 $ 41,400 $ 93,360 $ 47,046 $ 93,360 Services 187,775 96,858 182,023 153,005 (34,770) 156,440 Supplies / Other Expenses 41,646 90,000 70,000 30,000 (60,000) 90,000 Total General Fund 178,800 $ $ 324,089 $ 293,423 $ 276,365 $ (47,724) $ 339,800 Mission: The mission of the City Council is to provide high quality and professional public services that address community needs while enhancing the quality of life. This includes developing the City’s long-term strategic goals, overseeing the City’s fiscal and organizational management, adopting the annual operating and capital improvement budget and fulfilling the commitment to protecting the environment and quality of life in the City.

Dept Overview: Key responsibilities of the City Council include developing policies and updates to the municipal code,
providing overall direction, and serving on regional bodies as ambassadors for the City. Following a general election, the City Council also updates the strategic goals to meet changing priorities, which provide the foundation for developing the budget and workplans for the City.

City Council
Strategic
Goals
Budget
Workplan /
Policies
Capital
Program
Responsibilities
Municipal
Code
Overall
Direction
Analysis: The two year budget reflects the revised salary schedule for the Mayor and Councilmembers. The decrease in Supplies/Other Expenses is due to election costs for 2024-25, which occur on a bi-annual basis. 34%
55%
11%
Dept Budget - General Fund
Personnel - $93,360
Services - $153,005
Supplies / Other -
$30,000
$179
$293 $276
$340
23-24 24-25 25-26 26-27 Thousands
Dept Expense Trends
PGCC 6-4-25
129
City of Pacific Grove Budget
City Manager - Including Human Resources and City Clerk Overview / Functional Organization Chart
Current Year Anticipated Accomplishments
• Evaluations: Implemented an electronic performance management system • Employees Continued implementation of the retention and recruitment plan • Public Records: Implemented a request electronic database and create a public portal • Election Conducted a successful Election for Mayor and Council Members • Documents Ongoing importing of contracts into Laserfiche (past & present) Related Strategic Goals: Financial Sustainability, Community Development Environmental Stewardship, Infrastructure
Proposed Goals for Next Two Years
• Employee Retention: Update and implement employee recruitment and retention plan • Employee MOUs: Negotiate new MOUs for all bargaining units • Business License: Streamline the Business License application process • Community Outreach: Implement a comprehensive community outreach program • Public Records: Continue to enhance online document access Related Strategic Goals: Financial Sustainability, Community Development Environmental Stewardship, Infrastructure
Human Resources Director
City Clerk
Supporting Staff
Management Analyst
Department Staffing Organization Chart
Department Head
City Manager
Other Directors
Deputy City Manager
Mission: Assisting the City Council in achieving its goals for the community by developing recommendations and
facilitating policy decisions, as well as providing
organizational leadership for ongoing City services and implementing City Council decisions.

Dept Overview: Key responsibilities of the division include implementing the City Council’s goals and establishing a culture of excellence for the City. To do this in the most expeditious and efficient manner, individual City
departments are assigned specific goals and corresponding strategies that fall under their respective areas of
responsibility and expertise.

City Manager
Budget
Capital
Program
Organizational
Leadership
Dept
Oversight
Responsibilities
Implement
Council Goals
Policy
Development
PGCC 6-4-25
130
City of Pacific Grove Department Budgets
City Manager - Including Human Resources and City Clerk Financial and Staffing Summary - includes prorata portion of positions shared between divisions 23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 4.03 4.03 4.03 4.03 0.00 4.03
Part-Time Employees
Total Employees 4.03 4.03 4.03 4.03 0.00 4.03
General Fund (Dept 121) 1,091,458 $ $ 1,109,498 $ 1,079,609 $ 1,154,639 $ 1,191,399 45,141 $ Total Expenses 1,091,458 $ $ 1,109,498 $ 1,079,609 $ 1,154,639 $ 1,191,399 45,141 $ Salaries and Benefits $ 858,955 $ 838,298 $ 856,944 $ 891,836 $ 53,538 $ 920,682 Services 229,159 265,200 218,910 259,003 266,467 (6,197) Supplies 3,215 6,000 3,755 3,800 (2,200) 4,250
Other Expenses 129 - - - - -
Total General Fund 1,091,458 $ $ 1,109,498 $ 1,079,609 $ 1,154,639 $ 1,191,399 45,141 $ Key Performance Indicators
Metric 19-20 20-21 21-22 22-23 23-24
City Council Meetings N/A 54 33 53 28
Committees/Commissions Supported N/A 18 18 18 18
Volunteers N/A 160 225 181 219
Volunteer Hours N/A 2,520 4,016 3,834 8,977
Related Strategic Goals: Financial Sustainability, Community Development Environmental Stewardship, Infrastructure
Analysis: Incorporates anticipated employee salary step increases and COLAs resulting from the employee MOUs.

Reflects reduced budgets for the anticipated reduction of use of consultants for Human Resources and a reduced budget for employee programs.
77%
23%

0.3%
Dept Budget - General Fund
Personnel - $891,836
Services - $259,003
Supplies / Other - $3,800
$1.09 $1.08
$1.15
$1.19
23-24 24-25 25-26 26-27 Millions
Dept Expense Trends
PGCC 6-4-25
131
City of Pacific Grove Department Budgets
Community Development
Overview / Functional Organization Chart
Current Year Anticipated Accomplishments
• Housing Element: Submitted third draft to the California Department of Housing (HCD) • Website: Updated to receive online application permit submissions and payments • Recruitments Continued to fill vacant positions within the department • Inspections: Offered next day inspection services, focusing on the new downtown hotel • Housing: Sought qualifying housing rehabilitation projects for use of CDBG funds Related Strategic Goals: Community Development, Environmental Stewardship Proposed Goals for Next Two Years
• Housing: Achieve HCD certification of the 6th Cycle Housing Element Update • Housing: Begin implementing housing programs identified in the Housing Element • General Plan: Complete update to the General Plan for consistancy with Housing Element • Zoning: Initiate zoning code amendments to streamline review process timelines • Coastal Plan: Get Coastal Commission approval of amendments addressing coastal hazards • Recruitments: Hire and retain qualified staff so there are no vacancies Related Strategic Goals: Community Development, Environmental Stewardship Senior Program Manager
Department Staffing Organization Chart
Department Head
Manager
Senior Program Manager
Administrative Analyst
Associate Planners
Code Compliance Officer
Supporting Staff
Management Analyst
Office Assistant
Senior/Principal Planner
Community Development Director
Mission: Partner with the community to protect the beauty, sustainability, vitality and environmental integrity of the City, preserve the existing housing stock and support new
affordable housing in order to help meet the housing needs of the City's residents and support current and new commercial development. The departments strives to pursue high quality, architecturally sound development in accordance with the City’s land use and design goals.

Dept Overview: The department is organized into several units: The Advance Planning function maintains and updates the City’s General Plan, Local Coastal Program, and Zoning Ordinance. Current Planning processes planning applications and staff's the land use Commissions. The Building function administers permits and inspections for all construction. The Housing Function administers programs that provide
affordable housing for low-income households. Code
compliance addresses municipal code violations.

Community
Development
Advance
Planning
Building
Code
Compliance
Local
Coastal
Program
Responsibilities
General
Plan
Housing
PGCC 6-4-25
132
City of Pacific Grove Department Budgets
Community Development
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 6.75 7.75 7.75 8.00 0.25 8.00
Part-Time Employees 0.75 0.75 0.75 0.75 0.00 0.75
Total Employees 7.50 8.50 8.50 8.75 0.25 8.75
General Fund (Dept 201) 2,444,041 $ $ 3,213,158 $ 3,150,469 $ 2,439,320 $ (773,838) $ 2,498,225 Total Expenses 2,444,041 $ $ 3,213,158 $ 3,150,469 $ 2,439,320 $ (773,838) $ 2,498,225 Salaries and Benefits $ 761,682 $ 996,476 $ 1,060,033 784,164 $ $ 1,112,897 63,557 $ Services 1,661,747 2,196,432 2,346,055 1,359,038 (837,394) 1,365,078 Supplies 10,689 20,250 20,250 20,250 20,250 -
Other Expenses 9,922 - - - - -
Total General Fund 2,444,041 $ $ 3,213,158 $ 3,150,469 $ 2,439,320 $ (773,838) $ 2,498,225 Cost Recovery % (80-100%) 94% 83% 67% 90% 90%
Key Performance Indicators
Metric 19-20 20-21 21-22 22-23 23-24
Issued Building Permits 1,095 1,203 1,278 1,040 1,234
Approved Architectural Permits 50 41 38 32 51
Other Planning Approvals 329 222 246 529 352
Number of Inspections 2,406 3,054 3,909 2,170 2,483
Number of Code Enforcement cases 130 212 198 247 264
Related Strategic Goals: Community Development, Environmental Stewardship Analysis: Budget for next two fiscal years assumes full staffing, and incorporates increases for projected salary steps and COLAs for employees. Assumes use of consultants at level similar to that experienced in prior fiscal years for various projects, with reduced use expected related to assumed full dept staffing. Per the City's Fee Recovery Policy, the department strives for a cost recovery rate through revenues of between 80-100% of departmental expenditures.
43%
56%
1%
Dept Budget - General Fund
Personnel - $1,060,033
Services - $1,359,038
Supplies / Other - $20,250
$2.4
$3.2
$2.4 $2.5
23-24 24-25 25-26 26-27 Millions
Dept Expense Trends
PGCC 6-4-25
133
City of Pacific Grove Department Budgets
Economic Development (City Manager's Office)
Overview / Functional Organization Chart
Financial and Staffing Summary - includes prorata portion of positions shared between divisions 23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 0.40 0.40 0.40 1.15 0.75 1.15
Part-Time Employees
Total Employees 0.40 0.40 0.40 1.15 0.75 1.15
General Fund (Dept T130) 298,842 $ $ 393,321 $ 264,458 $ 454,615 $ 463,252 61,294 $ Total Expenses 298,842 $ $ 393,321 $ 264,458 $ 454,615 $ 463,252 61,294 $ Salaries and Benefits $ 88,719 $ 81,072 $ 256,615 77,647 $ $ 175,543 $ 263,252 Services 173,524 235,999 180,098 198,000 (37,999) 200,000 Supplies / Other Expenses 36,600 76,250 6,713 (76,250) - - Total General Fund 298,842 $ $ 393,321 $ 264,458 $ 454,615 $ 463,252 61,294 $ Mission: The mission of the division (part of the City Manager's department) is to assist in business retention and expansion, marketing and communications, and participating in regional economic development initiatives; and execute the economic development objectives of the City Council, while serving as a liaison between various City departments and the business and development community.

Dept Overview: Key responsibilities of the division include working with the Chamber to assist on local business initiatives and overseeing the Façade Improvement Program.

Economic
Development
Facade
Improvement
Marketing
Communications
Regional
Initiatives
Responsibilities
Chamber
Liaison
Business
Retention
Expansion
Analysis: A contribution for use by the former Economic Development Committee and monies previously budgeted for various contract services was used to fund a new Deputy City Manager position for the division.

Most of the services expenses are for the "See Monterey" program which promotes tourism within the area. 56%
44%
Dept Budget - General Fund
Personnel - $256,615
Services - $198,000
$299 $264
$455 $463
23-24 24-25 25-26 26-27 Thousands
Dept Expense Trends
PGCC 6-4-25
134
City of Pacific Grove Department Budgets
Museum
Overview / Functional Organization Chart
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget General Fund (Dept 411) 346,495 $ $ 384,300 $ 383,363 $ 424,493 $ 441,843 40,193 $ Total Expenses 346,495 $ $ 384,300 $ 383,363 $ 424,493 $ 441,843 40,193 $ Services 346,495 384,300 383,363 424,493 441,843 40,193 Supplies / Other Expenses - - - - - -
Total General Fund 346,495 $ $ 384,300 $ 383,363 $ 424,493 $ 441,843 40,193 $ Mission: Inspiring discovery, wonder, and stewardship of our natural world. The Museum is operated on a contract basis through the Museum Foundation of Pacific Grove, Inc. through a public / private partnership. The museum building is owned by the City.

Dept Overview: In 1883, the museum opened its doors
among the first wave of natural history museums in
America. Naturalists of this era began a
national tradition of hands-on science education and natural preservation. Over the past 140 years, the museum has grown from the seeds of these ideas into the award-winning institution it is today. The museum supports conservation, scientific literacy, co-curation, and deep learning towards a resilient community and sustainable future.

Museum
Artwork
Chinese
Fishing
Village Paleontology
Heritage
Photos
Collections at the Museum
Herbarium
Artwork
Analysis: Per contract, the City's contribution for the museum is equal to 1.1% of the General Fund Budget.

The services category also includes anticipated repairs of the museum building and equipment. 100%
Dept Budget - General Fund
Services -
$424,493
$384 $383
$424
$442
24-25 24-25 25-26 26-27 Thousands
Dept Expense Trends
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City of Pacific Grove Department Budgets
Fire and Emergency Services
Overview / Functional Organization Chart
Current Year Expected Accomplishments
• Paramedics: Began Advanced Life Support (ALS) paramedic service in January 2025 • Technology: Installed new Mobile Data Computers on apparatus • Personnel: Hired and successfully onboarded seven new firefighters • Fire Station: Completed significant upgrades including roof and tower repair • Social Media: Created a Monterey Fire Department Instagram • Inspections: Began a Defensible Space program to inspect high fire severity zones Related Strategic Goals: Infrastructure, Environmental Stewardship Proposed Goals for Next Two Years
• Fire Stations: Install a new Station Alerting system compliant with County upgrades • Fire Engines: Place new fire engine in service - expected to arrive by the end of 2025 • Maintenance Finalize First Due implementation for apparatus work orders and checks • Technology Finalize First Arriving implementation for uniform digital dashboards • Education: Continue efforts towards education and community risk reduction Related Strategic Goals: Infrastructure, Environmental Stewardship Key Performance Indicators
Metric 19-20 20-21 21-22 22-23 23-24
Calls for Service 1,740 1,772 2,033 2,257 2,042
Emergency Call Responses within 5 minutes N/A N/A 91% 90% 87% Fire Inspections N/A N/A N/A N/A 286
Training Hours Completed N/A N/A 16,865 16,673 21,871
Related Strategic Goals: Infrastructure, Environmental Stewardship Mission: Providing emergency medical aid, fire prevention, public education, fire suppression, disaster response, and related emergency services to the members and guests of our
community. Fire services are provided through a contract with the City of Monterey.

Fire
Emergency
Medical Aid
Safety
Education
Plan
Review
Fire
Suppression
Responsibilities
CERT
Program
Coordination
Disaster
Preparedness &
Response
Dept Overview: Key responsibilities of the department include provides a broad range of emergency response, preparedness, and loss prevention services. Fire Department prevention services include community education initiative, building construction plan review for fire code compliance, and fire cause and origin investigations. Community education
initiatives include: Community Emergency Response Team
(CERT) program coordination, and fire and life safety education for schools, care facilities and businesses.

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City of Pacific Grove Department Budgets
Fire and Emergency Services
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget General Fund (Dept 351) 3,313,322 $ $ 3,599,600 $ 3,632,149 $ 3,734,497 $ 134,897 $ 3,899,514 Fire Equipment (Fund 12) 5,527 46,080 46,080 100,000 53,920 12,880 Total Expenses 3,318,849 $ $ 3,645,680 $ 3,678,229 $ 3,834,497 $ 188,817 $ 3,912,394 Services 3,299,477 3,573,400 3,605,949 3,677,097 103,697 3,842,114 Supplies 13,846 26,200 26,200 32,400 6,200 32,400
Capital Outlay - - 25,000 - 25,000 25,000
Other Expenses - - - - - -
Total General Fund 3,313,322 $ $ 3,599,600 $ 3,632,149 $ 3,734,497 $ 134,897 $ 3,899,514 Analysis: The majority of the increase in the costs for services relates to the contract with the City of Monterey for fire services, which are projecting an approximate increase of 2% for FY 25-26 and 4% for FY 26-27.

In addition, internal service charges have increased for the next two years primarily related to pro rata funding for the City's insurance funds and administrative costs. The capital outlay proposed expenditures in the General Fund relate to equipment needed to outfit a recently purchased new fire engine. In addition, the Fire Equipment fund is funding some needed modifications to the Fire building.
98%
2%
Dept Budget - General Fund
Services - $3,677,097
Supplies / Other - $57,400
$3.3
$3.6
$3.7
$3.9
23-24 24-25 25-26 26-27
Millions
Dept Expense Trends
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City of Pacific Grove Department Budgets
Library
Overview / Functional Organization Chart
Current Year Anticipated Accomplishments
• Fundraising: Successful efforts helped to support intergenerational events and programming • Special Events: Collaborated with several organizations on several local special events • Partnerships: Opened dialogue with local libraries about establishing partnerships • Library Building: Investigated the feasibility of developing a small/private meeting space for users Related Strategic Goals: Infrastructure
Proposed Goals for Next Two Years
• Programming: Increase the number of intergenerational programs by 50% • Website: Enhance the website with improved design and navigation, and updated content • Literacy Program: Look to develop a partnership with local organizations to implement a program • Partnerships: Investigate the feasibility of adding Carmel into the collective library agreement Related Strategic Goals: Infrastructure
Senior Library Assistant
Library Clerks
Administrative Analyst
Library Assistant
Department Staffing Organization Chart
Department Head
Library Director
Senior Staff Other Supporting Staff
Librarians
Mission: Providing a welcoming place and a balanced collection while preserving the past and planning for the future. In addition, the library promotes the city’s heritage by collecting, preserving, organizing and making available many different types of historical resources for the City. Although the exterior of the library's original Carnegie building has changed somewhat, it is still in the Mission style, and many of the original features in the interior, including the decorative arches and windows have been
maintained.

Dept Overview: The department is responsible for providing library services to the community through materials lending, research services, programs for all ages, outreach events, and providing a safe, accessible, and welcoming space with knowledgeable, friendly, and dedicated staff. In addition to the physical collections, a Pacific Grove Library User's card also provides access to our Digital Library materials. These include ebooks, online magazines, audiobooks, and more.

Library
Books and
DVDs
Maps
Ebooks
Audiobooks
Magazines
Newspapers
Collections at the Library
Historic
Photos
Art
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City of Pacific Grove Department Budgets
Library
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 8.50 8.75 8.75 9.00 0.25 9.00
Part-Time Employees
Total Employees 8.50 8.75 8.75 9.00 0.25 9.00
General Fund (Dept 401) 1,000,084 $ $ 1,097,776 $ 1,097,750 $ 1,203,659 $ 105,883 $ 1,279,385 Total Expenses 1,000,084 $ $ 1,097,776 $ 1,097,750 $ 1,203,659 $ 105,883 $ 1,279,385 Salaries and Benefits $ 794,554 $ 872,868 $ 881,385 $ 963,656 $ 1,021,547 90,788 $ Services 138,455 153,400 152,274 179,503 26,103 196,838 Supplies 59,210 71,508 64,091 60,500 (11,008) 61,000
Capital Outlay 7,865 - - - - -
Total General Fund 1,000,084 $ $ 1,097,776 $ 1,097,750 $ 1,203,659 $ 105,883 $ 1,279,385 Key Performance Indicators
Metric 19-20 20-21 21-22 22-23 23-24
Audiobook Download 8,239 9,207 8,484 10,982 16,621
E-Book Download 7,644 9,367 9,210 10,425 14,497
Music Download N/A 8,008 8,511 9,111 10,056
Magazine Download N/A 832 920 1,429 6,155
Video Streaming Licenses N/A 404 40 44 48
Total Circulation of Library Materials 188,000 0 (Covid) 180,411 222,644 237,948 Visitors (Door Count) 155,023 0 (Covid) 30,945 60,677 62,944 Attendance at Events and Programs 12,855 4,681 5,424 13,813 18,892 Related Strategic Goals: Infrastructure
Analysis: Salaries and benefits account for estimated COLAs and employee salary step increases for both fiscal years 25-26 and 26-27.
80%
15%
5% Dept Budget - General Fund
Personnel - $963,656
Services - $179,503
Supplies / Other - $60,500
$1.0 $1.1 $1.2 $1.3
23-24 24-25 25-26 26-27 Millions
Dept Expense Trends
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City of Pacific Grove Department Budgets
Police
Overview / Functional Organization Chart
Current Year Anticipated Accomplishments
• Personnel: Improved wellness and resiliency resources for department personnel • Transparency: Maximized social media presence and expand community outreach efforts • Crime Prevention: Maximized staffing and create problem oriented policing team • Education: Facilitated educational workshops on the dangers of opioids/fentanyl • Traffic Safety: Hosted workshops, leverage technological solutions, increase enforcement Related Strategic Goals: Environmental Stewardship, Community Development Proposed Goals for Next Two Years
• Wellness Program: Build a comprehensive officer wellness and resiliency program • Traffic Safety: Enhance traffic safety through technology and collaborative solutions • Social Media: Expand and modernize the department’s digital and social media presence • Staff Development: Modernize internal training and leadership development • Crime Prevention: Strengthen through technology and community-led models Related Strategic Goals: Environmental Stewardship, Community Development Police Commanders
Police Sergeants
Administrative Analyst
Community Service Officers
Management Analyst
Parking Enforcement Officer
Department Staffing Organization Chart
Department Head
Managers/Supervisors
Supporting Staff
Police Chief Police Officers
Police Services Technician
Property & Evidence Technician
Mission: The Pacific Grove Police Department is committed to delivering exceptional public safety services while actively enhancing the quality of life in our community. We utilize both traditional and innovative strategies to serve efficiently, responsively, and with purpose. Guided by the principles of community policing, we foster strong, open partnerships with our residents—working together to identify concerns, solve problems, and prevent crime before it happens.

Dept Overview: The Pacific Grove Police Department is dedicated to fostering a culture of excellence through strong community partnerships, respect for the rights & dignity of every individual, & the delivery of professional public safety services grounded in integrity & accountability. This commitment is woven into every aspect of our work—whether in patrol, investigations,
administration, records, animal control, or parking enforcement.

Our guiding principle remains clear: Our Community, Your Police.

Police
Animal
Control
Records
Administration
Parking
Responsibilities
Patrol
Investigations
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City of Pacific Grove Department Budgets
Police
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 34.00 34.00 34.00 34.00 0 34.00
Part-Time Employees
Total Employees 34.00 34.00 34.00 34.00 0 34.00
General Fund (Dept 201) 6,536,910 $ $ 7,615,502 $ 7,029,118 $ 7,816,343 $ 200,841 $ 8,234,744 Total Expenses 6,536,910 $ $ 7,615,502 $ 7,029,118 $ 7,816,343 $ 200,841 $ 8,234,744 Salaries and Benefits $ 5,355,430 $ 6,293,840 $ 5,757,475 $ 6,280,681 $ 6,573,187 (13,159) $ Services 1,033,308 1,072,751 1,048,292 1,399,100 326,349 1,520,495 Supplies 59,312 76,000 50,441 84,000 8,000 88,500
Capital Outlay 76,298 160,349 160,349 40,000 (120,349) 40,000 Other Expenses 12,562 12,562 12,562 12,562 12,562 -
Total General Fund 6,536,910 $ $ 7,615,502 $ 7,029,118 $ 7,816,343 $ 200,841 $ 8,234,744 Key Performance Indicators
Metric (On a Calendar Year Basis) 2020 2021 2022 2023 2024 Written Reports 2,173 1,816 1,865 1,120 1,205
Arrests 322 233 220 142 149
Citations 1,810 601 622 518 531
Parking Citations 6,972 4,489 4,697 3,332 3,501
Field Interviews 724 492 360 123 128
Calls for Service 18,902 15,875 19,266 12,284 13,316
Related Strategic Goals: Environmental Stewardship, Community Development Analysis: The projected increase in expenditures for the next two years is primarily due to increased internal service charges related to worker's compensation insurance based upon a historical average of worker's compensation claims and insurance premiums.
80%
18%
2%
Dept Budget - General Fund
Personnel - $6,280,681
Services - $1,399,100
Supplies / Other - $136,562
$6.5 $7.0 $7.8 $8.2
23-24 24-25 25-26 26-27 Millions
Dept Expense Trends
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City of Pacific Grove Department Budgets
Public Works
Overview / Functional Organization Chart
Current Year Anticipated Accomplishments
• Facilities/Parks: Completed five Facility Conditions Assessments • Capital Plan/Outreach: Developed Five Year CIP for improved long term planning • Roads / Safety: Maintained over 600,000 SF of roadway, enhanced pedestrian safety • Forestry/Wildlife: Carried out tree planting initiatives; commenced fuel load mitigation • Downtown: Finalized sidewalk dining guidelines, completed sidewalk extension project • Parks: Finalized grant funded projects for play equipment / backstop replacement Related Strategic Goals: Infrastructure, Financial Sustainability, Community Development, Environment Proposed Goals for Next Two Years
• Facilities/Parks: Finalize facility assessments, incorporate into 5 year Capital Improvement Plan • Sewer: Begin development 10-year sewer master plan and associated user fee study • Climate: Finalize Climate Action and Adaptation Plan
• Vehicles: Improve fleet management to inform vehicle replacement schedules • Outreach: Promote projects and initiatives through meaningful public engagement tactics Related Strategic Goals: Infrastructure, Financial Sustainability, Environmental Stewardship Department Staffing Organization Chart
Department Head
Public Works Director
Managers/Supervisors
Construction Project Manager
Supporting Staff
Program Manager
Senior Program Manager
Maintenance Supervisor
Administrative Analyst
Management Analyst
Equipment Mechanics / Senior
Maintenance Workers / Senior
Mission: Ensuring stewardship and maintenance for the City’s natural and constructed environment, including streets, open spaces, forested areas, storm water, facilities, public vehicles, sanitary sewer system, and El Carmelo Cemetery.

Dept Overview: The department's responsibilities include maintenance of streets, streetlights, parks/open spaces, City facilities (including leased properties), storm water and sewer infrastructure, City vehicles and special events
logistics, set-up, and clean-up.

Public Works
Vehicle
Maintenance
Traffic
Streets /
Street
LIghts Storm Drains
Sewer
Cemetery
Responsibilities
Parks /
Special
Events
Forestry /
Open
Space
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City of Pacific Grove Department Budgets
Public Works
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 26.10 26.10 26.10 26.10 26.10 -
Part-Time Employees 1.25 1.75 1.75 1.75 - 1.75
Total Employees 27.35 27.85 27.85 27.85 27.85 -
General Fund (Dept 50) 4,054,763 $ $ 5,352,860 $ 5,098,796 $ 4,416,192 $ (936,668) $ 4,578,799 Total Expenses 4,054,763 $ $ 5,352,860 $ 5,098,796 $ 4,416,192 $ (936,668) $ 4,578,799 Salaries and Benefits $ 2,065,797 $ 2,601,343 $ 2,329,845 $ 2,539,972 $ 2,656,579 (61,371) $ Services 1,651,512 2,350,517 2,367,950 1,536,720 (813,797) 1,591,720 Supplies 260,457 351,000 351,000 289,500 (61,500) 280,500 Capital Outlay 74,964 50,000 50,000 50,000 50,000 -
Other Expenses 2,032 - - - - -
Total General Fund 4,054,763 $ $ 5,352,860 $ 5,098,796 $ 4,416,192 $ (936,668) $ 4,578,799 Key Performance Indicators
Metric 19-20 20-21 21-22 22-23 23-24
Work Orders Completed 1,216 1,198 1,681 1,523 1,327
Vehicle Maintenance Work Orders 343 316 211 241 256
Tree Permits Processed 434 363 276 295 218
Related Strategic Goals: Infrastructure, Environmental Stewardship Analysis: The decrease in salaries and consultant services for the General Fund was due to the reallocation of some staff and consultant costs to other funds to better utilize alternative funding sources, a reduction in contract services for tree services due to the addition of the new forester position and a reduction in funds allocated for equipment maintenance.
57%
35%
8%
Dept Budget - General Fund
Personnel - $2,539,972
Services - $1,536,720
Supplies / Other - $339,500
$4.1
$5.1 $4.4 $4.6
23-24 24-25 25-26 26-27 Millions
Dept Expense Trends
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City of Pacific Grove Department Budgets
Recreation
Overview / Functional Organization Chart
Current Year Anticipated Accomplishments
• Youth Soccer: Expanded existing Youth Soccer League adding an additional 70 registrations • Summer Sports: Added new Summer Sports - Junior Golf Camp and Basketball Camp • Youth Basketball: Launched Youth Basketball League with 73 registrations in the first season • Registrations: 2,047 summer registration across all summer programs • Swimming: 1,173 swim participants, up 122% from the prior year • Youth Center: Ensured continued availability 5 days a week throughout the school year Related Strategic Goals: Community Development
Proposed Goals for Next Two Years
• Outreach: Increase marketing through various methods including website enhancements • Swimming: Continue expansion of Recreational Swim into August and September • Programming: Evaluate programming to maximize participation • Youth: Continued with expanded youth basketball and soccer programs • Website: Enhance the online rental portal, to ensure seamless customer service • Administration: Update internal procedures and policies to gain administrative efficiencies Related Strategic Goals: Community Development
Recreation Coordinators
Recreation Program Supervisors
Office Assistant / PT / Seasonal
Division Staffing Organization Chart
Department Head Managers/Supervisors Supporting Staff
Public Works Director Recreation Program Manager
Mission and Overview: The department's mission is to provide a broad range of recreation services through programs, contract instructors, and collaborations with outside agencies. Citizens are offered sports leagues for youth and adults, leisure and educational programs for all ages, programs and services for teens, management of the historical Chautauqua Hall, Community Center, the Youth Center, rental of City parks and facilities, a range of summer and winter camps with programs for children and teens, and involvement with a wide range of special events in the City.

The Recreation Department also coordinates City approval and services required for City special events.

The department strives to make the City the best possible place to live, by providing high-quality recreational programs that enhance the quality of life, health, fun and lifelong learning, keeping people active and engaged, and providing exceptional customer service.

Recreation
Aquatics &
Sports
Programs
Summer
Camps &
Programs
Preschool &
Youth Center
Programs
Youth
Adult and
Family
Programs
Responsibilities
Park &
Wedding
Permits
Facility
Mgmt &
Rentals
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City of Pacific Grove Department Budgets
Recreation
Financial and Staffing Summary
23-24 24-25 24-25 25-26 25-26 26-27
Category / Fund Actual Budget Estimate Budget Variance Budget Full-Time Employees 6.65 6.65 6.65 6.65 0.00 6.65
Part-Time Employees 2.25 2.25 2.25 2.25 0.00 2.25
Total Employees 8.90 8.90 8.90 8.90 0.00 8.90
General Fund (Dept 421) 1,145,986 $ $ 1,554,839 $ 1,488,636 $ 1,792,832 $ 237,993 $ 1,832,987 Total Expenses 1,145,986 $ $ 1,554,839 $ 1,488,636 $ 1,792,832 $ 237,993 $ 1,832,987 Salaries and Benefits $ 1,062,307 777,243 $ $ 1,060,548 $ 1,286,220 $ 223,913 $ 1,329,187 Services 332,318 437,237 379,393 451,012 13,775 448,200 Supplies 33,771 54,295 48,695 55,600 1,305 55,600
Capital Outlay - - - - - -
Other Expenses 2,654 1,000 - (1,000) - -
Total General Fund 1,145,986 $ $ 1,554,839 $ 1,488,636 $ 1,792,832 $ 237,993 $ 1,832,987 Cost Recovery (Policy 30%) 37% 26% 24% 22% N/A 21%
Key Performance Indicators
Metric 19-20 20-21 21-22 22-23 23-24
Paid Special Events 27 - 3 21 26
Park Reservations (Weddings, Picnics) 1,080 90 789 1,502 878 Facility Classes/Reservations 1,804 1,377 397 1,763 1,830 Recreation Program Participants 594 1,168 414 1,653 2,009 Related Strategic Goals: Community Development
Analysis: The increase in personnel costs reflects the estimated annual COLA for employees and employee step increases for both fiscal years and an increase in seasonal part-time staff and contract program instructors for additional recreation programs offered, as well as increases in utility costs. Per the City's Fee Recovery Policy, the department strives for a cost recovery rate through revenues of at least 30% of departmental expenditures. 72%
25%
3%
Dept Budget - General Fund
Personnel - $1,286,220
Services - $451,012
Supplies / Other - $55,600
$1.1 $1.5 $1.8 $1.8
23-24 24-25 25-26 26-27 Millions
Dept Expense Trends
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City of Pacific Grove Budget
Capital Improvement Summary by Project Category
Fiscal Years 2025-26 and 2026-27
Funding Sources Project 2025-26 2026-27
Project Totals
(Includes Prior
Years)
\
CIP26-01 CIP Fund Street Rehabilitation Project 26-27 $ 300,000 $ 300,000 $ 600,000 Measure X 570,000 568,000 1,138,000
RMRA/SB1 570,096 400,000 970,096
Sewer 350,000 350,000 700,000
25 $ 136,000 1,790,096 1,618,000 3,408,096
CIP26-02 CIP Fund Mandated ADA Improvements 25-26 200,000 200,000 Measure X 250,000 250,000
50 9,000 450,000 - 450,000
CIP27-01 CIP Fund Crack and Slurry Seal 26-27 200,000 200,000 Measure X 250,000 250,000
10 45,000 - 450,000 450,000
$ 2,240,096 $ 2,068,000 $ 4,308,096
CIP 26-03 Operating
Donations
Library Backup Power System 25-26 15 5,000 $ 80,000 $ 80,000 CIP 26-04 Operating
Donations
Pillar Privacy / Study Booth ADA 25-26 N/A None 25,000 25,000 CIP 26-05 Operating
Donations
Chautauqua Hall
Building Improvements
25-26 25 28,000 700,000 700,000
CIP 26-06 Operating
Donations
Chinese Pavillion / Moon Gate 25-26 25 8,000 200,000 200,000 CIP 26-07 Recreation
Donations
Youth Center Roof Repair 25-26 30 1,000 32,000 32,000
CIP 26-08 Mcindoo
Donation
City Hall Window and
Door Replacement 25-26
23,006 23,006
Yount Income 8,994 8,994
30 1,000 32,000 - 32,000
CIP 26-09 Fire Emergency
Equipment
Fire Station Alerting System 25-26 15 7,000 100,000 100,000 CIP 26-10 Operating
Donations
Roof Repairs Police Department 25-26 30 2,000 70,000 70,000 CIP 26-11 Golf Point Pinos Grill Boiler
Replacement
25-26 15 3,000 40,000 40,000
$ 1,279,000 $ - $ 1,279,000
CIP 26-12 Sewer Sewer Force Main Replacement -
Arena Avenue
25-26 70 9,000 $ 600,000 $ 600,000
CIP 26-13 Sewer Urban Diversion Station Repair
and Recalibration
25-26 10 10,000 100,000 100,000
CIP 24-04 Sewer Sewer Collection System Master
Plan (SCSMP) Projects
26-27 70 126,000 7,000,000 8,800,000
$ 700,000 $ 7,000,000 $ 9,500,000
CIP 25-10 Yount Income Recreation Trail Improvements -
Esplanade Park
25-26 20 2,000 $ 16,003 $ 36,003
$ 16,003 $ - $ 36,003
Estimated
Useful Life
Planned
Completion
Depreciation
& Operating
Impact
Project
Code
Transportation
Parks and Recreation
Facilities
Wastewater
Total Transportation
Total Facilities
Total Wastewater
Totals Parks and Recreation
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City of Pacific Grove Budget
Capital Improvement Summary by Project Category
Fiscal Years 2025-26 and 2026-27
Category Summary Addresses Council Areas of Focus 2025-26 2026-27 Project Totals Transportation Infrastructure $ 2,240,096 $ 2,068,000 $ 4,308,096 Facilities Infrastructure 1,279,000 - 1,279,000
Wastewater Infrastructure, Environmental Stewardship 700,000 7,000,000 9,500,000 Parks and Recreation Infrastructure 16,003 - 36,003
Total for Two Year Capital Plan $ 4,235,099 $ 9,068,000 $ 15,123,099 Fund Name 2025-26 2026-27 Project Totals
Fire Emergency Equipment 100,000 - 100,000
Measure X 820,000 818,000 1,638,000
Recreation Donations 32,000 - 32,000
Operating Donations 1,075,000 - 1,075,000
Yount Income 24,997 - 44,997
RMRA/SB1 570,096 400,000 970,096
CIP Fund 500,000 500,000 1,000,000
Sewer 1,050,000 7,350,000 10,200,000
Golf 40,000 - 40,000
Mcindoo Donation 23,006 - 23,006
Totals by Fund $ 4,235,099 $ 9,068,000 $ 15,123,099
92 41
47 63
76 77
Fund Number
12 17
25 31
2%
19%
1%
25%
1%
13%
12%
25%
1%
1% CIP By Funding Source Fiscal Year 25-26
Fire Emergency Equipment $100,000
Measure X $820,000
Recreation Donations $32,000
Operating Donations $1,075,000
Yount Income $24,997
RMRA/SB1 $570,096
CIP Fund $500,000
Sewer $1,050,000
Golf $40,000
Mcindoo Donation $23,006
9% 4%
6%
81%
CIP by Funding Source Fiscal Year 26-27
Measure X $818,000
RMRA/SB1 $400,000
CIP Fund $500,000
Sewer $7,350,000
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City of Pacific Grove
Capital Improvement Plan Overview
Overview
The City’s capital improvement plan (CIP) is an integral part of the City’s annual budget process.

The CIP serves as a public relations and economic development tool and focuses on preserving infrastructure while ensuring efficient use of public funds. Council Policy 400-6 defines a Capital improvement as buildings, machinery, or equipment, with an original cost more than $50,000, and other capital outlay as items with an original cost of more than $5,000. Capital improvements include projects that are related to facilities, streets, and infrastructure.

Objectives of Plan
The City prepares a capital improvement plan to assist with the resiliency of public assets. This includes the following objectives:
 Capital projects and equipment purchases • Links to Council’s strategic initiatives  An implementation schedule • Budgetary information
 Options for project financing • Project justification Development of Capital Plan / Budget Process
As part of the annual budget process, City departments submit project requests to the Public Works Department. Projects are identified based on input received from the community, the Mayor and City Council, asset management studies and City staff. Staff identify projects that are based on critical needs, including those due to safety issues or to comply with new mandates.

Each project proposal is reviewed and prioritized based on the following criteria:
 Greatest need (e.g. mandates and public safety)
 Meeting the Council’s Priority Areas
 Consequences of delay (increased costs, asset preservation)  Ability to accomplish multiple goals or align timing with other project(s)  Readiness and Availability of funding (ex: grants)
Under the direction of the City Manager, the Public Works and Finance Departments reviewed the proposed projects and prepared the CIP for submittal to the Mayor and City Council. The proposed CIP is then presented, discussed, and acted upon by the City Council in public sessions during the budget hearings. Project costs are based upon current year dollars, with future budgets increased by either the Engineering News Record construction cost index or the San Francisco Bay Area Consumer Price Index.

Budget Basis for Capital Plan
The CIP budget differs from an operating budget in that projects can span multiple years and the funding for each project may be carried forward until the project is finished or is no longer needed. Each project includes annual depreciation costs, which are factored into the department’s annual maintenance budget. Capital projects are funded through various sources of funding. When possible, the City uses alternate sources of funding, such as through partnerships and grants, to minimize the financial impact on its Funds.

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Street Rehabilitation Project
General Project Information
Project Code CIP26-01
Project Category Transportation
Funding Type Multiple Funds (General & Non-General Funds) Fund(s) Fund 63, Capital Improvement Fund
Fund 17, Measure X
Fund 47, RMRA/SB1
Fund 76, Sewer Fund
Account(s) 63-631-6041
17-522-6041
47-471-6041
76-612-6051
Council Goal Alignment Infrastructure
Managing Department Public Works
Location Various road segments
Project Description
This project allows rehabilitation of road segments identified by the Pavement Management Program (PMP) as being in poor or failed condition, addressing and improving the aging road infrastructure network. This project also plays a vital role in ensuring MOE requirements are met to remain eligible for over $1M of external funding for roadways (see funding notes).

FY25/26
This project targets three road segments that have not received formal maintenance or rehabilitation in over 30 years. These segments have Pavement Condition Index (PCI) scores between 0 and 21, placing them in the "failed" category due to severe deterioration. The compromised pavement allows water intrusion, leading to dislodged sections and frequent potholes. Although crews perform regular patching to address safety hazards, these are only temporary fixes. Full rehabilitation is necessary to restore the integrity of these roadways. The segments to be addressed are:
(1) 10th Street (Central Ave to Lighthouse Ave) - PCI 10 (2) Del Monte Blvd (Asilomar St to Coral St) - PCI 21
(3) Beacon (Coral St to Esplanade St) - PCI 0
The underground sewer infrastructure will be videoed and addressed as an aspect of this project via the sewer fund.

FY26/27
In May 2026, staff will return with the annual SB1 project list and resolution for Council approval which specifies the segments to be addressed in FY26/27. This is an annual requirement of the California Transportation Commission (CTC) protocols for SB1/RMRA funding eligibility.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Capital Improvement Fund $300,000 $300,000 - - - $600,000 Measure X $570,000 $568,000 - - - $1,138,000
RMRA/SB1 $570,096 $400,000 - - - $970,096
Sewer Fund $350,000 $350,000 - - - $700,000
Funding Notes

MAINTENANCE OF EFFORT COMPLIANCE
This project helps the City maintain eligibility for ongoing Measure X and SB1/RMRA funding by meeting Maintenance of Effort (MOE) requirements.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
149
Project Photos
Beacon Street (PCI 0)
Del Monte Blvd (PCI 21)
10th Street (PCI 10)
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
150
Mandated ADA Improvements
General Project Information
Project Code CIP26-02
Project Category Transportation
Funding Type Multiple Funds (General & Non-General Funds) Fund(s) Fund 63, Capital Improvement Fund
Fund 17, Measure X
Account(s) 63-631-6041
17-522-6041
Council Goal Alignment Infrastructure
Managing Department Public Works
Location Lovers Point & Prescott Ave
Project Description
This project addresses ADA compliance mandates from a court order requiring completion by specified deadlines in FY25/26. The locations for improvements are Lovers Point and Prescott Ave (between Divisadero and Forest).

Lovers Point Scope of Work:

Replace existing ADA ramps and construct new sidewalk at the triangle parking lot to comply with ADA standards.

These improvements must be completed by October 31, 2025.

Prescott Ave Scope of Work:

Sidewalk infill, repairs, installation of ADA-compliant curb ramps, and upgrades to driveway approaches to meet accessibility standards. These improvements must be completed by December 31, 2025.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Capital Improvement Fund $200,000 - - - - $200,000
Measure X $250,000 - - - - $250,000
Funding Notes
This project has been budgeted using all anticipated remaining balances for streets and pedestrian infrastructure in FY25/26. Due to the limited availability of these funds, actual costs are expected to exceed the proposed budget.

At this time actual costs are unknown. Once the project is engineered and formally bid, staff will return with options to address potential funding deficits which may include project savings from road and infrastructure projects from prior years.

MAINTENANCE OF EFFORT COMPLIANCE
This project helps the City maintain eligibility for ongoing Measure X and SB1 funding by meeting Maintenance of Effort (MOE) requirements.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
151
Prescott Ave
Lovers Point
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
152
Crack & Slurry Seal
General Project Information
Project Code CIP27-01
Project Category Transportation
Funding Type Multiple Funds (General & Non-General Funds) Fund(s) Fund 63, Capital Improvement Fund
Fund 17, Measure X
Account(s) 63-631-6041
17-522-6041
Council Goal Alignment Infrastructure
Managing Department Public Works
Location Various road segments
Project Description
Crack and Slurry sealing is a vital maintenance activity that helps preserve the City's roads against rapid deterioration and potholes due to inclement weather. This is a cost effective maintenance treatment that helps ensure roads remain in good condition for years to come. Streets to receive the crack & slurry seal treatment are identified via the City's Pavement Management Program, maintenance logs, and infield observations.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Capital Improvement Fund - $200,000 - - - $200,000
Measure X - $250,000 - - - $250,000
Funding Notes

MAINTENANCE OF EFFORT COMPLIANCE
This project helps the City maintain eligibility for ongoing Measure X and SB1 funding by meeting Maintenance of Effort (MOE) requirements.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY26/27 FY26/27 FY26/27 FY26/27 FY26/27
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
153
Library Backup Power System
General Project Information
Project Code CIP26-03
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 31, Operating Donations
Account(s) 31-516-5201
Council Goal Alignment Infrastructure
Managing Department Public Works & Library
Location Pacific Grove Public Library
Project Description
This project will allow for the purchase and installation of a backup power system for the Pacific Grove Public Library. The Library is a beloved community facility that has the potential to serve as a vital community resource during prolonged power outages and/or emergencies. Today, the library has no generator or backup power source to support it's operations during outages.

Options for back up power sources include, but are not limited to, battery storage (e.g., Tesla Powerwall 3 or similar) and a natural gas generator connected to an existing gas line. These options will be further explored for feasibility following project approval.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Operating Donations $80,000 - - - - $80,000
Funding Notes

FUNDED BY COMMUNITY DONATIONS
The Pacific Grove Library Friends and Foundation have dedicated $80,000 to fund this project.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
154
Pillar Privacy/Study Booth ADA
General Project Information
Project Code CIP26-04
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 31, Operating Donations
Account(s) 31-516-5201
Council Goal Alignment Infrastructure
Managing Department Public Works & Library
Location Pacific Grove Public Library
Project Description
This project will create a dedicated privacy/study booth in the Pacific Grove Public Library. The Library currently lacks a private meeting space, and users have consistently requested one. This project responds to that need and enhances the Library’s ability to support virtual meetings, telehealth, and focused work.

The scope of work includes the purchase of the privacy booth, prep work and installation. It is anticipated that the private/study booth with be located near the existing DVD shelving.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Operating Donations $25,000 - - - - $25,000
Funding Notes

FUNDED BY COMMUNITY DONATIONS
The Pacific Grove Library Friends and Foundation have dedicated $25,000 to fund this project.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
155
Chautauqua Hall Building Improvements
General Project Information
Project Code CIP26-05
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 31, Operating Donations
Account(s) 31-516-5201
Council Goal Alignment Infrastructure
Managing Department Public Works
Location Chautauqua Hall
Project Description
This project will address the facility infrastructure improvements and maintenance tasks outlined in the 2024 WJE Chautauqua Hall Building Assessment Report.

Built in 1881, this beloved facility has served generations and remains a designated historic landmark and beloved community resource. The project ensures needed upgrades and improvements are made to allow the building’s continued function, in the long-term, and allow preservation of its historical integrity.

With strong community support, the Heritage Society's Friends of Chautauqua Hall has raised funding to carry out a wide range of improvements noted in the report, including repairs and upgrades to the drainage system, wood deck, roofing elements, cladding, windows, and doors.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Operating Donations $700,000 - - - - $700,000
Funding Notes

FUNDED BY COMMUNITY DONATIONS
The Heritage Society's Friend of Chautauqua Hall have raised $700,000 of community donations to facilitate this project.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
156
Chinese Pavillion and Moon Gate
General Project Information
Project Code CIP26-06
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 31, Operating Donations
Account(s) 31-516-5201
Council Goal Alignment Infrastructure
Managing Department Public Works
Location El Marie Dyke Park
Project Description
This project will support the construction of a traditional Chinese Pavilion and Moon Gate at El Marie Dyke Park, replacing the existing deteriorated gazebo.

The proposed location was approved by the City Council in 2024 following an assessment of locations.

The project will be funded through donations from Monterey Bay Chinese Association. Following design development, the project will undergo the required permitting and review process by the appropriate boards/commissions.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Operating Donations $200,000 - - - - $200,000
Funding Notes

FUNDED BY COMMUNITY DONATIONS
The Monterey Bay Chinese Association (MBCA) has raised $200,000 of community donations to fund this project.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
157
Youth Center Roof Repair
General Project Information
Project Code CIP26-07
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 25, Recreation Donations
Account(s) 31-516-5201
Council Goal Alignment Infrastructure
Managing Department Public Works
Location Youth Center
Project Description
This project will address a known roof leak in the Youth Center above the restroom facility where deterioration has led to water intrusion through the light fixtures. The scope of work will include the replacement of the damaged roofing and rain gutters to restore the roof’s integrity and prevent further damage. Timely repairs are essential to avoid more costly future repairs and to ensure the continued operation of the recreational facility. Without a functional restroom, youth programming at this site would be unable to continue.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Recreation Donations $32,000 - - - - $32,000
Funding Notes
Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
158
City Hall Window and Door Replacement
General Project Information
Project Code CIP26-08
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 92, McIndoo Donation
Fund 41, Youth Income
Account(s) 95-519-6021
41-510-6021
Council Goal Alignment Infrastructure
Managing Department Public Works
Location City Hall
Project Description
This project will replace the front door and first-floor office windows in kind to match the original design of the City Hall Entrance. The front door and surrounding trim have sustained significant termite damage, and the office windows no longer close properly. Water intrusion from the damaged windows is causing ongoing deterioration to interior plaster.

Timely replacement is necessary to prevent further structural and interior damage and ensure building security. This project was called out as an "immediate need" in the 2024 City Hall Facility Conditions Assessment.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
McIndoo Donation $23,006 - - - - $23,006
Yount Income $8,994 - - - - $8,994
Funding Notes
Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
159
Fire Station Alerting System
General Project Information
Project Code CIP26-09
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 12, Fire Emergency Equipment
Account(s) 12-353-6021
Council Goal Alignment Infrastructure
Managing Department Public Works & Fire Department
Location Pacific Grove Fire Station
Project Description
This project will replace the existing 14-year-old Fire Station alerting system, which dispatches emergency incidents from Monterey County Communications. The current system and speakers are outdated, no longer repairable, and incompatible with the IP-based paging system Monterey County is transitioning to. Since the manufacturer ComTech ceased operations in 2022, replacement parts are unavailable, and most vendors are unfamiliar with the legacy system, reducing reliability.

The new system will be fully compatible with Monterey County’s upgraded dispatch platform and will allow simultaneous unit dispatching, improving response times. Additional features include a mobile app for customizable alerts, a digital display with dispatch information, automated text-to-speech for location details, and enhanced audio clarity to reduce the need for repeated communication.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Fire Emergency Equipment $100,000 - - - - $100,000
Funding Notes
Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
160
Roof Repairs Police Department
General Project Information
Project Code CIP26-10
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 31, Operating Donations
Account(s) 31-516-5201
Council Goal Alignment Infrastructure
Managing Department Public Works
Location Police Station
Project Description
This project will address a known roof leak caused by the deterioration of the existing hot mop tar and rolled asphalt roofing, which is over 40 years old and beyond its serviceable life. While the roof has been temporarily patched, permanent repairs are essential to prevent further damage. The project will involve the installation of a new PVC membrane roof, ensuring long-term durability and avoiding more costly infrastructure repairs down the line.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Operating Donations $70,000 - - - - $70,000
Funding Notes
Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
161
Point Pinos Grill Boiler replacement
General Project Information
Project Code CIP26-11
Project Category Facilities
Funding Type Non-General Fund
Fund(s) Fund 77, Golf Course Fund
Account(s) 77-622-6021
Council Goal Alignment Infrastructure
Managing Department Public Works
Location Golf Course Restaurant
Project Description
This project will replace the existing 20-year-old boiler with a new high-efficiency unit. The current boiler has exceeded its serviceable life, is leaking significantly, and replacement parts are no longer available, making repairs unfeasible.

The boiler is essential for providing baseboard heating to the restaurant. Previous facility upgrades, funded via the CIP, included installing a separate water heater for hot water needs, reducing the boiler’s load. As a result, a smaller, more energy-efficient boiler can now be installed, creating a more efficient and redundant system.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Golf Course Fund $40,000 - - - - $40,000
Funding Notes
Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
162
Sewer Force Main Replacement - Arena Avenue
General Project Information
Project Code CIP26-12
Project Category Wastewater
Funding Type Non-General Fund
Fund(s) Fund 76, Sewer Fund
Account(s) 76-612-6051
Council Goal Alignment Infrastructure /Environmental Stewardship Managing Department Public Works
Location Arena Avenue
Project Description
This project involves installing a new force main on Arena Avenue (from Sunset Dr to Asilomar Ave) to address known deficiencies in the sewer system. The replacement is critical to maintaining reliable sewer service, protecting the environment, and preventing spills.

The existing line has experienced two failures in this area and is in urgent need of repair to ensure continued safe operation.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Sewer Fund $600,000 - - - - $600,000
Funding Notes
N/A
Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
163
Urban Diversion Station Repair and Recalibration
General Project Information
Project Code CIP26-13
Project Category Wastewater
Funding Type Non-General Fund
Fund(s) Fund 76, Sewer Fund
Account(s) 76-612-6051
Council Goal Alignment Infrastructure /Environmental Stewardship Managing Department Public Works
Location Various Locations
Project Description
This project will allow a contractor to repair pumps and recalibrate meters for the Urban Diversion System. The Urban Diversion System diverts stormwater runoff from storm drain outfalls to Monterey One Water via the Sewer System.

Repairs are required to ensure accurate reporting to Monterey One Water regarding the amount of stormwater being placed into their systems. Completion of this work is necessary to maintain compliance with reporting requirements and regulatory standards.

Funding Information
Fund FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Sewer Fund $100,000 - - - - $100,000
Funding Notes
N/A
Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
164
SCSMP Projects 1, 6 & 9
General Project Information
Project Code CIP24-04
Project Category Wastewater
Funding Type Non-General Fund
Fund(s) Fund 76, Sewer Fund
Account(s) 76-612-6051
Council Goal Alignment Infrastructure /Environmental Stewardship Managing Department Public Works
Location Various Locations
Project Description
The City provides sewer collection services for residences and commercial businesses over an area of approximately 1,414 acres with a population of approximately 15,040 residents. The City’s collection and conveyance system is comprised of approximately 58 miles of pipelines.

The Sewer Collection System Master Plan (SCSMP) helps drive the City's long-term sewer collection system asset management needs by identifying CIP projects and necessary upgrades to the collection system. Over the years the City has completed several of the noted SCSMP CIP Projects and only the following three remain. This multi-year project will allow the City to complete SCSMP Projects 1, 6 & 9:
 SCSMP #1 - 17 Mile Dr - Upgrade ~3,000LF of sewer main due to capacity deficiencies  SCSMP #6 - Hilcrest Ave - Replace ~4,250LF of sewer main due to root intrusion  SCSMP #9- Highway 68 - Protect exposed pipe from damage This project will allow completion of these projects. These are large scale, multi-year projects Funding Information
Fund Prior
Years FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Sewer Fund $1,800,000 - $7,000,000 - - - $8,800,000
Funding Notes

MULTI-YEAR PROJECT
As an element of the FY23/24, $1.8M of sewer funding was allocated to allow for engineering, permitting and environmental. This is currently underway and will continue through FY25/26 using the initial funding allocation.

Construction is anticipated to begin in FY26/27 with a preliminary cost estimate of approximately $7M. This is a rough estimate and may be updated prior to the start of FY26/27 as an engineers estimate is developed.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY26/27 FY26/27 FY26/27 FY26/27 FY26/27
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
165
Recreation Trail Improvements - Esplanade Park
General Project Information
Project Code CIP 25-10
Project Category Parks & Recreation
Funding Type Non-General Fund
Fund(s) Fund 41, Yount Income
Account(s) 41-510-6021
Council Goal Alignment Infrastructure
Managing Department Public Works
Location Recreation Trail adjacent to Esplanade Park
Project Description
In Perkins Park, the Recreation Trail adjacent to Esplanade Park from Beach Street to Coral Street consists of a thin band of land which keeps getting thinner due to coastal erosion, particularly around Esplanade Park. Just east of Esplanade, the otherwise continuous shoreline trail essentially disappears for a stretch, forcing pedestrians onto a thin strip of dirt right next to Ocean View Boulevard.

The Shoreline Management Plan (SMP) proposed conceptual improvements . The SMP suggest eliminating the ocean-side parking lane and shifting the street curb inland by 7–8 feet, reclaiming approximately 500 feet of space for a pedestrian trail. This would entail the potential loss of about 25 on-street parking spaces. The SMP stated design details would be refined with efforts to mitigate the loss of parking where possible.

This multi-year project initiates the process of addressing the unsafe conditions on the Recreation Trail at this specific location. Year 1 will involve public outreach and design, while Year 2 will focus on permitting, bidding, and construction.

Funding Information
Fund Prior
Years FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 TOTAL
Yount Income $20,000 $16,003 - - - - $36,003
Funding Notes

MULTI-YEAR PROJECT
As an element of the FY24/25 CIP, $20,000 was allocated from the Strong Disbursement Fund to allow for design/engineering of these vital pedestrian improvements. To date, minimal funding has been expended.

Although the remaining unused funding will be carried forward, additional funding is needed to accommodate construction, which is anticipated to be ~$35,000. The initial funding source, the Strong Disbursement Fund, has been depleted. The Yount Income fund is proposed to bridge the gap needed for construction.

Estimated Project Timeline
Project Development Bidding Contract Construction/Work in Progress Complete
FY24/25 FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
City of Pacific Grove
Two-Year Capital Improvement Plan
PGCC 6-4-25
166
City of Pacific Grove Capital Budget
Capital Outlay
General and CIP Funds
Listing of Capital Outlay by Department
Department Item FY 25-26 FY 26-27
Admin Services - IT VOIP Phone System Improvements 5,000 Admin Services - IT Police Door Access Upgrade 100,000
Admin Services - IT City Hall Door Access 140,000
Admin Services - IT Redundant Internet And Firewall 43,500 Admin Services - IT Network Upgrade 62,000
Admin Services - IT Voip Improvements 5,000
City Council City Council Chambers Equipment 10,000
Fire Equipping New Fire Engine 25,000 25,000
Police Purchase Of Radios 40,000 40,000
Public Works Light Fixtures, Poles, Batteries for Solar Lights 50,000 50,000 Total General Fund 370,000 225,500
Admin Services - Finance Replacement ERP/Accounting System 150,000 350,000 Additional Information on IT Capital Outlay Items
Capital Outlay Photos
Redundant Internet and Firewall - The firewall devices and internet connections are critical components of the city’s IT infrastructure; however, the city currently lacks redundancy in these areas. This implementation aims to prevent downtime of city services caused by firewall or internet connection failures by providing a redundant internet and firewall. The High Availability Assessment report identified this as a high priority.

Network Upgrade - The network switches that interconnect all the IT equipment at City Hall, the Police Department, and the Library are nearing the end of their operational life and require replacement. This issue was flagged as a high-priority item in the City’s High Availability assessment. The implementation plan involves replacing the outdated switches and introducing redundancies to ensure failover and enhance overall availability.

VOIP Improvements - The city’s current Voice Over IP (VoIP) phone system lacks proper failover configuration. As a result, a VoIP controller failure could potentially cause communication disruptions. This project focuses on addressing these failover configuration issues to ensure continued communications even in the event of equipment failure.

Police and City Hall Door Access Systems - This is a crucial request to upgrade an obsolete and non-compliant access control system at PD to a newer security-compliant system. Staff is unable to perform updates or make any key card changes; and the current system is no longer supported. This upgrade is essential for the increased security of the Police Department; and addresses the urgent need for enforced security measures. A similar type of system is also being proposed for City Hall.

PGCC 6-4-25
167
Capital Projects Anticipated Accomplishments
Fiscal Year 2024-25
Project Project Name Status of Project Estimated
Completion
Fund
No.

Acct Fund Name Project Budget
Street, Sidewalk Improvements (Object 6041)
CIP23-03 Cedar, Sunset, & Congress Intersection Work in Progress FY 24-25 20 6041 RSTP (TAMC) $ 1,000,000 CIP23-04 David Ave Street Rehabilitation Work in Progress FY 24-25 17 6041 Local Streets and Roads 266,157 76 6041 Sewer 156,000
422,157
CIP23-16 Safety Lighting at Robert Down Elementary Complete FY 24-25 84 6041 ARPA 4,710 CIP23-21 David Ave Sidewalk Complete FY 24-25 84 6041 ARPA 662,378 CIP24-01 FY23/24 Street Rehabilitation Project Complete FY 24-25 17 6041 Local Streets and Roads 536,088 47 6041 RMRA SB1 505,049
63 6041 Capital Improvement 300,000
76 6051 Sewer 872,000
2,213,137
CIP24-02 FY23/24 Crack & Slurry Seal Project Complete FY 24-25 17 6041 Local Streets and Roads 185,000 63 6041 Capital Improvement 200,000
84 6041 ARPA 15,290
400,290
CIP24-06 Design of Sidewalk Extension for Outside Dining Uses Complete FY 24-25 63 6041 Capital Improvement 50,000 CIP25-01 FY 24/25 Street Rehabilitation Project Project Development FY 25-26 63 6041 Capital Improvement 300,000 17 6041 Local Streets and Roads 730,000
47 6054 RMRA SB1 386,065
76 6051 Sewer 300,000
1,716,065
CIP25-02 FY 24/25 Crack & Slurry Seal Project Project Development FY 24-25 17 6041 Local Streets and Roads 200,000 63 6041 Capital Improvement 200,000
400,000
CIP25-03 Pedestrian Safety - Central Ave & Fountain Ave Project Development FY 24-25 63 6041 Capital Improvement 270,000 CIP25-14 Sidewalk Ext at Lighthouse & Fountain Complete FY 24-25 63 6041 Capital Improvement 340,000 CIP25-15 Sidewalk Projects at Sinex & Sunset Project Development FY 24-25 63 6041 Capital Improvement 175,000 Streets
PGCC 6-4-25
$ 7,653,737
168
Capital Projects Anticipated Accomplishments
Fiscal Year 2024-25
Project Project Name Status of Project Estimated
Completion
Fund
No.

Acct Fund Name Project Budget
Park, Open Space Improvements (Object 6031)
CIP22-13 Backstop Replacement Municipal Ball Park Complete FY 24-25 84 6041 ARPA 25,736 92 6031 McIndoo Donation 17,529
93 6031 Koo Estate Donation 7,000
63 6031 Capital Improvement 96,000
146,265
CIP22-21 GW Park Playground & ADA Compliant Playground Complete FY 24-25 63 6031 Capital Improvement 81,952 84 6031 ARPA 25,000
106,952
CIP23-22 Recreation Board's Park Inventory Complete FY 24-25 84 6031 ARPA 25,071 CIP24-05 George Washington Park (GWP) Enhancement Project Complete FY 24-25 63 6031 Capital Improvement 50,000 CIP25-11 Pico Ave & Crocker Ave Stormwater Improvements Complete FY 24-25 46 6031 Strong Disbursement 45,000 CIP25-16 Butterfly Sanctuary Fencing Project Development FY 24-25 63 6031 Capital Improvement 75,000 CIP25-17 GW Park Ball Field Drainage Complete FY 24-25 63 6031 Capital Improvement 50,000 CIP25-18 Pickleball/Tennis Court Resurfacing & Sound Fencing Contract FY 24-25 63 6031 Capital Improvement 47,000 CIP25-19 ADA Access at GW Park Project Development FY 24-25 63 6031 Capital Improvement 25,000 Parks/Open Space $ 570,288
General Building Improvements (Object 6021)
CIP18-46 Tide Pool & Point Pinos Complete FY 24-25 63 6021 Capital Improvement $ 2,875,205 CIP23-05 Point Pinos Lighthouse Roof Repair Project Development FY 24-25 27 6021 Lighthouse 60,000 CIP23-07 Museum Mezzanine Upgrades Complete FY 24-25 08 6021 Museum Improvement 75,000 CIP23-08 Museum Basement Moisture Control Complete FY 24-25 08 6021 Museum Improvement 40,000 CIP23-10 Fire Station Roof Repair Complete FY 24-25 84 6021 ARPA 59,476 CIP23-12 Fire Dept. Bathroom & Shower Remodel Complete FY 24-25 84 6021 ARPA 152,277 CIP25-05 PG Museum Flooring Replacement Bids/RFP FY 24-25 08 6021 Museum Improvement 35,000 CIP25-06 Museum Roof Repair - Storage Garage Project Development FY 24-25 08 6021 Museum Improvement 17,000 CIP25-07 Point Pinos Lighthouse Electrical Panel Complete FY 24-25 27 6021 Lighthouse 20,000 CIP25-08 Golf Course Water Heater Complete FY 24-25 77 6021 Golf 20,000 CIP25-09 Library Door Repair Complete FY 24-25 84 6021 ARPA 22,000 CIP25-10 Recreation Trail Improvements - Esplanade Park Work in Progress FY 25-26 46 6021 Strong Disbursement 20,000 Building $ 3,395,957
PGCC 6-4-25
169
Capital Projects Anticipated Accomplishments
Fiscal Year 2024-25
Project Project Name Status of Project Estimated
Completion
Fund
No.

Acct Fund Name Project Budget
Sewer System Improvements (Object 6051)
CIP22-03 Phase 9 Sewer Improvements Complete FY 24-25 76 6051 Sewer $ 997,387 CIP23-06 Pump Station Replacement Bids/RFP FY 24-25 76 6051 Sewer 337,095 CIP24-03 Priority Stormwater Repair Project on Syida Dr Project Development FY 24-25 63 6054 Capital Improvement 100,000 CIP24-04 Sewer Collection System Master Plan Projects 1,6 & 9 Work in Progress FY 24-25 76 6051 Sewer 1,800,000 CIP25-04 Community Center Sewer Repairs Complete FY 24-25 76 6051 Sewer 50,000 Sewer 3,284,482
Grand Totals $ 14,904,465
Fund No. Fund Name Budget
8 Museum Improvement 167,000
17 Local Streets and Roads 1,917,245
20 RSTP (TAMC) 1,000,000
27 Lighthouse 80,000
46 Strong Disbursement 65,000
47 RMRA SB1 891,114
63 Capital Improvement 5,235,157
76 Sewer 4,512,482
77 Golf 20,000
84 ARPA 991,938
92 McIndoo Donation 17,529
93 Koo Estate Donation 7,000
14,904,465
Project Count
% of Projects with a Status of % of Total
Project Development 9
Complete 22
Work in Progress 4
Bids/RFP 2
Contract 1
38 30%
35%
9%
26%
Projects by Funding Source
Sewer
General / Capital Funds
ARPA / Other
Street Funds
51%
4%
22%
23%
Projects by Type
Streets / Sidewalks
Parks / Open Space
Sewer
General / Building
Significant progress is expected to be made on these projects from the current year's budget, with outstanding encumbrances at the end of the fiscal year carried over to Fiscal Year 2025-26 with a corresponding adjustment to the City’s capital budget. These projects addressed the City’s four areas of focus.

PGCC 6-4-25
170
City of Pacific Grove Budget
Statistical Comparisons of Selected Agencies
Fiscal Year 2023-24
Pacific
Grove Carmel Capitola Marina Monterey Seaside Average
Difference
from PG
Population 14,966 3,122 9,456 22,695 27,106 30,197 18,515 24% Employees 105 80 69 122 445 178 179 70%
General Fund Revenues
General Fund Total Revenues 33,249,760 27,133,782 19,014,509 40,176,982 104,803,040 47,246,550 47,674,973 43% General Fund Revenues Per Capita 2,222 8,691 2,011 1,770 3,866 1,565 3,581 61% General Fund Tax Revenues 27,336,521 22,780,525 14,492,882 29,695,777 68,866,026 41,981,559 35,563,354 30% % of Total Revenues 82% 84% 76% 74% 66% 89% 75% -8%
General Fund Expenses 29,471,820 25,740,423 19,691,492 31,346,759 95,573,719 44,583,722 43,387,223 47% Public Safety 12,359,031 9,057,317 7,740,343 13,351,348 50,787,551 26,542,882 21,495,888 74% Economic / Community Development 3,318,117 2,979,672 947,297 3,911,380 6,524,266 2,562,000 3,384,923 2% Public Works / Transportation 4,399,770 5,192,057 3,682,149 200,958 7,976,095 4,572,734 4,324,799 -2% Recreation / Library / Museum 2,700,224 1,351,865 267,956 1,250,619 17,016,146 5,385,795 5,054,476 87% Debt Service 1,506,652 83,724 - 429,503 49,695 496,936 211,972 -86% Admin / Other 5,188,026 7,075,788 7,053,747 12,202,951 13,219,966 5,023,375 8,915,165 72% % of General Fund Expenses
Public Safety 42% 35% 39% 43% 53% 60% 50% 8%
Economic / Community Development 11% 12% 5% 12% 7% 6% 8% -3% Public Works / Transportation 15% 20% 19% 1% 8% 10% 10% -5% Recreation / Library / Museum 9% 5% 1% 4% 18% 12% 12% 2% Debt Service 5% 0% 0% 1% 0% 1% 0% -5%
Admin / Other 18% 27% 36% 39% 14% 11% 21% 3%
Long-Term Liabilities 70,561,807 37,530,029 34,869,953 95,032,923 258,585,431 94,719,094 104,147,486 48% Pension Liability 55,021,695 29,203,964 32,157,510 29,593,077 189,284,049 64,121,663 68,872,053 25% % of Gross Liability Funded 76% 68% 69% 76% 71% 76% 72% -4% Claims / Other Debt - LT Portion 5,439,950 4,567,703 693,792 24,690,163 47,322,980 16,714,178 18,797,763 246% Other Business Type Debt 6,045,056 35,950,000 9,913,651 2,669,391 16,177,681 168% OPEB Liability - LT Portion 3,035,380 3,073,519 1,549,998 3,556,826 8,261,538 9,758,653 5,240,107 73% Compensated Absences - LT Portion 1,019,725 684,842 468,652 1,242,856 3,803,212 1,455,208 1,530,954 50% General Fund Reserves 17,581,788 20,306,904 7,017,319 47,193,974 60,077,454 30,993,165 33,117,763 88% Operating Reserves / Litigation Reserve 17,581,788 16,427,787 5,203,463 32,797,005 33,193,926 26,992,355 22,922,907 30% Pension/OPEB/Comp Absences/ LT Debt 3,124,794 1,531,142 7,400,000 8,218,769 4,000,810 4,855,103 100% Capital Projects / Outlay 282,714 6,996,969 18,664,759 8,648,147 100% Economic Development 754,323 754,323 100%
Operating Reserves % of Expenses 60% 64% 26% 105% 35% 61% 58% -2% $2,222
$8,691
$2,011
$1,770
$3,866
$1,565
$3,581
Pacific
Grove
Carmel
Capitola
Marina
Monterey
Seaside
Average
General Fund Revenue Per Capita
60%
64%
26%
105%
35%
61%
58%
Pacific
Grove
Carmel
Capitola
Marina
Monterey
Seaside
Average
General Fund Operating Reserves
% of General
Fund Expenses
PGCC 6-4-25
171
City of Pacific Grove
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
Sales Transient Utility Business Other
Property and Use Franchise Occupancy Users License Taxes Total $ 5,836,174 $ 3,534,495 $ 975,090 $ 4,998,885 $ 1,428,360 $ 359,408 $ 102,627 $ 17,235,039 6,226,267 3,325,809 1,041,653 5,364,317 1,594,143 341,071 146,945 18,040,205 6,557,824 4,159,401 915,094 5,829,610 1,593,887 402,881 125,487 19,584,184 6,851,928 4,075,744 1,082,574 6,656,849 1,688,876 381,810 121,192 20,858,973 7,306,184 5,139,045 1,226,524 6,796,087 1,641,172 370,655 110,554 22,590,221 7,632,399 4,765,472 1,176,215 5,310,063 1,643,614 396,533 110,823 21,035,119 8,191,673 5,000,873 1,392,700 3,978,577 1,858,652 361,674 222,242 21,006,391 8,573,969 5,630,320 1,489,888 6,821,183 1,940,677 371,310 231,389 25,058,736 9,330,981 6,734,940 1,620,136 7,105,256 2,097,934 425,691 165,613 27,480,551 10,001,561 7,146,935 1,682,562 7,375,869 2,118,068 644,911 177,881 29,147,787 Notes/Analysis:

Source: City of Pacific Grove Finance Department
2015
Fiscal Year
Ended
June 30
2022
2023
2016
2017
2018
2019
2020
2021
2024
The City's property tax revenues have increased at a steady pace over the past ten years primarily related to changes in ownership and annual increases allow under the State's Proposition 13 which governs growth in property taxes. $17.2
$18.0
$19.6
$20.9
$22.6
$21.0
$21.0
$25.1
$27.5
$29.1
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
General Governmental Tax Revenue by Year (In Millions)
PGCC 6-4-25
172
City of Pacific Grove
General Fund Revenues by Source
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30 Taxes
Intergovernmental
Licenses
Permits &
Impact
Fees
Fines and
Forfeitures
Charges
for
Services
Interest,
Rents &
Concessions
Other
Revenues Total
2015 $ 16,532,093 $ 163,543 $ 440,403 $ 49,714 $ 983,061 $ 433,491 $ 589,932 $ 19,192,237 2016 17,358,914 229,671 481,304 1,367,494 127,740 355,293 20,814,062 893,646 2017 18,805,809 111,092 576,779 1,545,556 110,665 265,903 21,977,796 561,992 2018 19,754,218 521,403 87,478 1,643,238 282,841 259,883 22,919,219 370,158 2019 21,018,950 547,193 92,206 1,585,098 169,534 553,032 24,364,830 398,817 2020 19,741,066 171,317 576,735 1,456,261 179,797 523,280 23,356,876 708,420 2021 19,679,908 116,159 873,727 1,538,638 36,984 213,705 23,368,297 909,176 2022 23,412,682 150,517 913,160 1,877,203 37,397 1,215,986 (1,805) 27,605,140 2023 25,799,639 1,083,985 146,946 1,678,855 460,058 1,949,182 390,656 31,509,321 2024 27,336,521 1,322,285 278,308 1,737,498 314,242 1,125,585 1,135,321 33,249,760 Source: City of Pacific Grove Finance Department
e $19.2
$20.8
$22.0
$22.9
$24.4
$23.4
$23.4
$27.6
$31.5
$33.2
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
General Fund Revenue by Year (In Millions)
PGCC 6-4-25
173
City of Pacific Grove
Net Assessed Value of Taxable Property
Last Ten Fiscal Years
Total Total
Personal Assessed Direct Tax
Residential Commercial Other Total Property Value Rate
$ 2,438,540,047 $ 229,888,967 $ 35,379,902 $ 2,703,808,916 $ 38,757,828 $ 2,742,566,744 16.2% 2,582,410,785 238,447,123 33,362,264 2,854,220,172 40,617,474 2,894,837,646 16.2% 2,747,369,747 246,883,728 36,894,923 3,031,148,398 41,950,516 3,073,098,914 15.9% 2,918,531,066 265,910,702 30,645,309 3,215,087,077 42,996,800 3,258,083,877 15.9% 3,112,639,411 265,486,441 48,587,979 3,426,713,831 42,749,505 3,469,463,336 15.9% 3,307,434,783 274,948,202 53,236,808 3,635,619,793 46,292,980 3,681,912,773 15.9% 3,484,607,327 279,870,522 58,693,772 3,823,171,621 46,589,365 3,869,760,986 15.9% 3,670,449,106 281,994,698 58,996,880 4,011,440,684 43,436,617 4,054,877,301 15.9% 3,981,692,067 318,373,164 65,800,233 4,365,865,464 45,441,570 4,411,307,034 15.9% 4,254,675,761 322,149,604 137,205,601 4,714,030,966 43,183,029 4,757,213,995 16.1% Notes / Analysis:

Rates are based on a $100 of taxable value. Exempt values are not included in Total.

Source: Monterey County Assessor Combined Tax Rolls, HdL Companies, Coren & Cone 2015
2016
2017
2018
2019
With the passage of a constitutional amendment (Proposition 13) and subsequently enacted State legislation, property is assessed according to a base year rather than on a % of market value. Accordingly, a reliable estimate of actual value of taxable property within the City is not possible.
2020
2021
2022
2023
2024
Fiscal Year
Ended Real Property
June 30
$2.7 $2.9 $3.0 $3.2 $3.4 $3.6 $3.8 $4.0
$4.4
$4.7
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Assessed Value of Real Property (In Billions)
PGCC 6-4-25
174
City of Pacific Grove
Ratios of Outstanding Debt By Type
Last Ten Fiscal Years
2015 2016 2017 2018 2019
Governmental Activities:

General obligation bonds $ 257,439 $ 175,057 $ 89,194
Pension obligation bonds 17,431,558 16,625,139 15,712,560 $ 14,680,804 $ 13,522,530 Capital leases 200,761 82,534 16,787
PG & E Loan 145,110
SBITA Liability
Total Governmental Activities 17,889,758 16,882,730 15,818,541 14,680,804 13,667,640 Business-type Activities:

Revenue bonds - Wastewater refunding bonds 1,103,096 1,052,184 999,045 943,812 886,575 Site Lease - Golf course 3,044,767 2,903,599 2,756,223 2,602,366 2,441,744 Certificates of participation - Golf course
Capital Leases
Loan- Local water project construction, State loan 960,522 6,308,658 5,328,076 5,174,788 Loan - PG & E Loan 7,791
Total Business-type Activities 4,147,863 4,916,305 10,063,926 8,874,254 8,510,898 Total Primary Government $ 22,037,621 $ 21,799,035 $ 25,882,467 $ 23,555,058 $ 22,178,538 Personal income1
$ 675,827,000 $ 717,389,000 $ 740,117,000 $ 766,209,000 $ 759,116,000 Debt as percentage of personal income 3.26% 3.04% 3.50% 3.07% 2.92% Population2, A
15,394 15,352 15,498 15,660 15,883
Debt per capita 1,432 1,420 1,670 1,504 1,396
Assessed value3
2,894,837,646 3,073,098,914 3,073,098,914 3,258,083,877 3,469,463,336 Debt as percentage of assessed value 0.76% 0.71% 0.84% 0.72% 0.64% Notes:

A
Decrease in 2022 population due to change in Census 2020 benchmark.

Fiscal Year Ended June 30
$17.4 $16.6 $15.7 $14.7 $13.5 $12.2 $10.8 $9.2
$7.4 $6.5
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Pension Obligation Bonds Outstanding (In Millions)
PGCC 6-4-25
175
City of Pacific Grove
Ratios of Outstanding Debt By Type (Continued)
Last Ten Fiscal Years
2020 2021 2022 2023 2024
Governmental Activities:

General obligation bonds
Pension obligation bonds $ 12,228,861 $ 10,785,885 $ 9,179,235 $ 7,403,565 $ 6,458,191 Capital leases
PG & E Loan 121,696 98,281 74,866 51,451 31,403
SBITA Liability 317,788 200,738
Total Governmental Activities 12,350,557 10,884,166 9,254,101 7,772,804 6,690,332 Business-type Activities:

Revenue bonds - Wastewater refunding bonds 827,487 766,573 703,945 639,629 573,704 Site Lease - Golf course 2,274,059 2,099,001 1,916,244 1,725,451 1,526,268 Certificates of participation - Golf course
Capital Leases
Loan- Local water project construction, State loan 5,020,088 4,863,840 4,706,030 4,546,643 4,385,661 Loan - PG & E Loan 4,869 1,947
Total Business-type Activities 8,126,503 7,731,361 7,326,219 6,911,723 6,485,633 Total Primary Government $ 20,477,060 $ 18,615,527 $ 16,580,320 $ 14,684,527 $ 13,175,965 Personal income1
$ 776,384,000 $ 795,868,000 $ 816,648,000 $ 832,496,000 $ 971,497,000 Debt as percentage of personal income 2.64% 2.34% 2.03% 1.76% 1.36% Population2, A
15,265 15,536 14,761 14,741 14,966
Debt per capita 1,341 1,198 1,123 996 880
Assessed value3
3,681,912,773 3,869,760,986 4,054,877,301 4,411,307,034 4,757,213,995 Debt as percentage of assessed value 0.56% 0.48% 0.41% 0.33% 0.28% Sources:
1 2 California Department of Finance
3 HdL Companies and Avenu Insights and Analytics
4 City of Pacific Grove Finance Department
Fiscal Year Ended June 30
US Department of Commerce, Bureau of Economic Analysis (refer to Table 16). $4.6 $5.2
$10.2 $8.9 $8.7 $8.2 $7.8 $7.4 $7.3 $6.7
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Other Outstanding Debt - Excluding Pensions (In Millions) PGCC 6-4-25
176
City of Pacific Grove
Demographic and Economic Statistics
Last Ten Fiscal Years
Total Personal Per Capita % of Population % of Population Unemployment Income Personal Median 25+ with High 25+ with Population 1,7 Rate 2(In thousands) Income 3 Age 4
School Diploma 5 Bachelor's Degree 5
2015 15,394 5.7% 675,827 $ $ 43,902 49.3 96% 50%
2016 15,352 5.1% 717,389 46,729 49.3 95% 50%
2017 15,498 4.7% 740,117 47,756 48.8 96% 52%
2018 15,660 4.9% 766,209 48,928 49.0 96% 53%
2019 15,883 4.6% 759,116 47,794 49.0 96% 51%
2020 15,265 5.1% 776,384 50,860 48.5 96% 53%
2021 15,536 8.6% 795,868 51,227 48.9 97% 54%
2022 14,761 9.1% 816,648 55,325 48.3 96% 55%
2023 14,741 5.9% 832,496 56,475 48.0 96% 55%
2024 14,966 7.0% 971,497 64,914 49.2 96% 57%
Notes / Analysis / Sources:

A For calendar year ending during the fiscal year.

B Total Personal Income is presented in thousands.
1 California Department of Finance and HdL Companies
2 California Employment Development Department and HdL Companies 3 U.S. Department of Commerce, Bureau of Economic Analysis and HdL Companies, for years 2010-2017 4 U.S. Census, American Fact Finder for 2009, and HdL Companies 5 California Board of Equalization and HdL Companies
6 HdL companies and Avenu Insights and Analytics
7 Decrease in 2022 population due to change in Census 2020 benchmark Fiscal Year
Ended
June 30

5.7%

5.1% 4.7% 4.9% 4.6% 5.1
%

8.6%

9.1%

5.9%

7.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
County Unemployment Rate
PGCC 6-4-25
177
City of Pacific Grove
Employees by Industry
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
69 68 68 69 71 38 72 68 74 74
12 11 12 13 13 12 7 13 20 12
26 26 27 27 26 25 25 25 26 26
5 5 5 5 5 5 5 5 5 5
14 13 13 14 15 13 16 14 16 15
Educational & Health Services 19 18 19 20 21 19 20 21 23 24 25 24 25 25 28 20 23 24 27 26
32 31 33 35 36 32 33 36 36 34
14 17 14 11 5 4 9 4 6 6
Totals 216 213 216 219 220 168 210 210 233 222
Analysis: Employment in the agriculture and leisure/hospitality areas have grown over the ten year period, except for 2020 due to the impacts of COVID.

Source: Employment Development Department, Labor Market Information (LMI) Salinas MSA Note: GASB Statement No. 44 allows for employment by industry in lieu of Principal Employers For Fiscal Year Ended June 30
Other
Agriculture
Construction, Mining, Manufacturing
Trade, Transportation & Utilities
Information & Financial Activities
Professional & Business Services
Industry
Leisure & Hospitality
Government
213
216
216
219
220
168
210
210
233
222
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Employees in County (In Thousands)
PGCC 6-4-25
178
City of Pacific Grove
Number of City Employees by Department (1)
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Departments:

General Government (2) 14 14 14 17 16 17 17 17 18 18
Public Safety 34 34 37 34 34 34 33 34 34 34
Public Works 20 22 20 21 23 23 23 20 20 20
Recreation (3) 14 15 14 14 14 14 5 3 7 10
Library (3) 12 10 12 12 12 11 8 5 8 9
Community Development 8 8 8 8 10 8 9 8 8 8
Business-type Activities:

Cemetery 1 2 1 2 2 2 2 2 2 3
Sewer 4 6 5 5 5 5 5 5 5 5
Total 107 110 110 112 116 115 99 95 102 105
Analysis/Notes:
1 Reflects the authorized positions in each budget year. This number includes both regular and part-time staff. 2 Includes 3.5 FTE's for Council Members and Mayor
3,4
Source: City of Pacific Grove Budget Document
The counts for Recreation and Library Departments exclude part-time, on-call and seasonal staff.

Note that the Museum and Golf Course are operated on a contract basis without City employees For Fiscal Year Ended June 30
110
107
110
112
116
115
95 99
102
105
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total Number of City Employees (PT/FT)
PGCC 6-4-25
179
City of Pacific Grove
Operating Indicators By Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function:

Police
Calls for service 17,627 21,521 18,032 15,359 20,350 18,902 15,875 19,266 12,284 13,214 Fire
Calls for service 1,584 1,764 1,694 1,604 1,877 1,740 1,772 2,033 2,257 1,948 Inspections 177 182 703 484 1,006 62 197 201 109 668
Recreation
Park reservations (1)
318 348 328 299 645 273 90 2,166 1,502 878
Special events (1)
14 18 16 18 24 18 - 21 3 26
Recreation program registrations (1) N/A N/A N/A N/A N/A 667 414 1,168 1,653 2,009 Public Works
Potholes patched(2) 100 121 58 108 108 75 N/A 100 116 103 Work orders completed 1,594 1,406 1,630 1,620 1,606 1,216 1,198 1,681 1,579 1,803 Tree Permits Issued 96 354 329 360 434 508 363 276 295 218 Library
Circulation of materials (thousands) 283 289 291 288 328 188 84 180 223 283 Reference questions (thousands) (1)
25 26 29 21 15 19 5 13 34 18
Community Development
Building Permits 525 576 429 429 520 1,095 1,203 1,278 1,040 1,054 Analysis/Notes:
1 Due to COVID-19 restrictions, some indicators related to Recreation, Library, and Special Events were limited in prior years.

Source: City of Pacific Grove Finance Department
For Fiscal Year Ended June 30
1,406
1,594 1,620 1,630 1,606
1,216 1,198
1,681 1,579
1,803
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Work Orders Completed
PGCC 6-4-25
180
City of Pacific Grove
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2015 2016 2017 2018 2019
General Fund
Nonspendable
Prepaid assets $ 25,878 $ 27,904 $ 210,824 $ 31,373
Leases Receivable / Permanent Funds
Assigned / Committed 240,922 261,771 $ 279,660 286,638 268,962 Unassigned 7,956,937 9,632,848 11,352,442 11,365,650 11,230,241 Total General Fund $ 8,223,737 $ 9,922,523 $ 11,632,102 $ 11,863,112 $ 11,530,576 All other governmental funds
Unreserved, undesignated, reported in:

Nonspendable
Prepaid assets $ 4,215
Leases Receivable
Loans Receivable
Permanent funds 2,643,651 $ 2,761,263 $ 2,855,521 $ 2,899,737 $ 3,029,024 Restricted
Social service programs 507,885 622,022 549,372 704,968 832,061 Public safety 377,053 482,400 772,241 908,239 842,518
Community development 1,801,999 1,786,526 2,057,868 2,120,819 3,414,820 Lost revenue recovery
Street improvements 179,252 570 104,510 223,651 1,190,141 Debt service 63,579 90,746 90,746 23,207
Assigned
Capital projects
Unassigned (32,658) 157,765 19,306 (57,994) (86,180)
Total all other governmental funds $ 5,544,976 $ 5,901,292 $ 6,449,564 $ 6,822,627 $ 9,222,384 Source: City of Pacific Grove Finance Department
Fiscal Year Ended June 30
$8.2
$9.9
$11.6 $11.9 $11.5
$9.8 $10.0
$12.2
$15.0
$17.6
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Available General Fund Reserves (In Millions)
PGCC 6-4-25
181
City of Pacific Grove
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Continued)
2020 2021 2022 2023 2024
General Fund
Nonspendable
Prepaid assets $ 18,486 $ 17,099
Leases Receivable / Permanent Funds $ 19,762
Assigned / Committed $ 100,398 $ 97,042 85,816 12,033,000 Unassigned 9,713,336 9,910,606 12,129,809 15,006,867 5,531,689 Total General Fund $ 9,813,734 $ 10,007,648 $ 12,235,387 $ 15,025,353 $ 17,581,788 All other governmental funds
Unreserved, undesignated, reported in:

Nonspendable
Prepaid assets $ 26,300
Leases Receivable 792
Loans Receivable $ 1,313,168
Permanent funds $ 3,129,132 $ 3,190,775 3,166,699 3,262,465 3,492,262 Restricted
Social service programs 723,787 748,183 610,617 732,292 1,261,146 Public safety 808,626 764,767 418,637 355,266 358,064
Community development 2,424,125 1,632,662 1,630,814 1,586,315 2,411,089 Lost revenue recovery 293,369 1,074,164 895,169
Street improvements 1,291,650 1,292,481 1,604,411 1,676,616 1,943,221 Debt service
Assigned
Capital projects 22,626 360,196
Unassigned (9,020) (8,349) (22,553) (40,122) (350,967)
Total all other governmental funds $ 8,368,300 $ 7,620,519 $ 7,729,086 $ 9,982,790 $ 10,370,180 Fiscal Year Ended June 30
$5.5 $5.9 $6.4 $6.8
$9.2 $8.4 $7.6 $7.7
$10.0 $10.4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Designated Reserves Other Govt Funds (In Millions)
PGCC 6-4-25
182
City of Pacific Grove
Financial Policy Summary
A summary is provided below and in Note 1 to the Basic Financial Statements, with all at the City’s website and detailed ones for the budget, reserves, debt and investments in the budget document.

Budget / Purchasing
Purchasing and budget amendments over $40,000 require Council approval.  Budget Control: Board approval is required for increases at the fund level  Balanced Budget: Revenues should be >= operating expenses  Monitoring: Regular Board reports on financials / budget adjustments General Fund Reserves
Below are the reserve policy levels set by the Council for the General Fund.

Note that operating expensesinclude debt service and departmental capital outlay.  Operating: Should be at least 25% of Operating Budget  Pension: Should be a minimum of $1,000,000
 Capital: Should be a minimum of $1,000,000
Capital Assets
Below are the policies established by the Agency for its capital assets  Basis: Recorded at cost or donated estimated fair market value  Threshold: $5,000 minimum for capital outlay, $50,000 for CIP  Useful Life: 5-100 years based upon type of asset
Debt
Below are the policies established by the City for its long-term debt  Debt Coverage: 125% recommended
 % Annual Budget: 15% Maximum
 Term: 30 Years Maximum
Reserves Other Funds
Below are the reserve policy levels set by the Council for Other Funds  Golf Fund Should be 25% of Revenues of Fund
 Insurance Funds Should be 75% of Claims Liabilities
 Sewer Fund Should cover 2 Years of Capital Projects
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City of Pacific Grove
Budget Calendar
Feb • Mid-Year Report: Finance prepares report with mid-year adjustments • 5 Year Forecast: Finance presents updated forecast to Council and Public • Budget Preparation: Departments develop drafts of their two year budgets Feb-May • Goals: Departments develop with expected accomplishments • Budget: Finance oversees preparing revenue / ISF charge estimates • Capital Program: Public Works develops using dept input / establishes rankings • Rate Study Draft: Initial Drafts Presented to Council and Public Mar-May • Meetings: Finance/ City Manager holds internal budget meetings • Personnel: Finance and Human Resources update projections • BID/HID: Sends out notice to Public and holds 1st Reading Ordinance • Fee Changes: Holds public hearing on fees for General Fund May • Budget/CIP: Public Works and Finance presents to Council and Public • Five Year Forecast: Finance updates forecast • Document: Finance addresses CSMFO/GFOA comments on budget May-June • Website: Finance updates with proposed budget for Public • Budget/CIP: Finance prepares Budget and Capital Executive Summaries • Public Hearing: Board holds for Public and adopts budget/capital program May-June • Awards: Budgets submitted to GFOA/CSMFO for awards programs • Website: Finance posts budget on website and in accounting system • New Rates: City Staff implements New Rates Aug-Dec • Quarterly Reports: Finance prepares quarterly reports for Council • Audit: Annual Financial Audit takes place • Annual Reports: CAFR and PAFR issued in accordance with GFOA standards Key Budget Dates:

Mid-Year Budget Update: February Fee Public Hearings: May/June Budget Public Hearings: May/June Budget Adoption: June
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City Of Pacific Grove
City Council Policy
Policy Governing Policy No. Effective Date Page No.

Fees, Charges, and Cost Recovery 400-4 June 15, 2011 1 of 2 Purpose
The purpose of the policy is to guide the City Council’s establishment of fees for service, fines, and other charges for service, in order to help ensure consistency in fee setting rationale. The policy is intended to provide broad guidance for service areas, without providing detailed guidance for all fee categories It is the City Council’s intent that the policy may be amended over time to address additional services and evolving economic circumstances.

Policy Of The City
The City establishes fees according to Pacific Grove Municipal Code Chapter 6.02. Pursuant to Article XIIIB of the California Constitution, it is the intent of the City Council to recover a portion or all costs reasonably borne for providing government services to the extent such cost recovery reflects the appropriate balance of general revenue support and fees paid by the individual(s) benefiting from the service.

For enterprise services, in which the City is offering products or services for which the customer has broad market choices, the City may choose to set rates based on current market conditions. This includes facility rentals, cemetery sales, recreational programs, land use, or similar enterprises. This market-based approach provides the City with the ability to optimize revenue beyond recovering the cost of providing the service.

These market-based rates accurately reflect the value received by the customer.

In setting fees, City staff shall prepare fees for City Council consideration, based on cost recovery levels in the subsequent table. The listed percentage or methodology represents the combined cost recovery level for the department. Individual fees within each department may be established at a lower rate to encourage a desired performance; however the overall departmental fees should be within the listed ranges.

All staff assigned to hourly-based services, such as special events, inspections, or related tasks will be charged at the fully burdened hourly rate.

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Cost Recovery Policies
Service Cost Recovery Method
Administration, City Clerk, Libraries At least 30% of costs Consideration may need to be given to the recovery percentage, such as limitations on certain fees imposed by the State, election code, or similar entities.

Community Development 80-100% of costs
Public Works 80-100% of costs
Public Safety 30-50% of costs
Hyperbaric Chamber 80-100% of costs
City Facility Rental
Private parties Market
Non-profit organizations Market
Ongoing, frequent, or unique rental
(e.g., weekly classes, or street closure)
Discount from Market
City–sponsored events No charge
Special Events
For-profit sponsor Market; however at least 100% costs
Non-profit sponsor 100% of costs
Events designated “traditional” by City Council No charge Recreation Market; however at least 30% of costs
Cemetery Market; however at least 80% of costs
Golf Determined through concessionaire
Adopted June 2, 2010 (Resolution No. 10-044)
Adopted June 15, 2011 (Resolution No. 11-052)
Adopted September 19, 2018 (Resolution No. 18-033)
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City Of Pacific Grove
City Council Policy
Policy Governing Policy No. Effective Date Page No.

Investments 400-5 June 4, 2025 1 of 6
Purpose
This policy is intended to provide guidelines for the prudent investment of the City’s temporary idle cash and reserves, and to outline the procedures for managing the City’s treasury, in accordance with the guidelines of the California Municipal Treasurer’s Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and Association of Public Treasurers of the United States and Canada (APTUSC).

Scope
This investment policy applies to all financial assets of the City. These funds are accounted for in the City’s Annual Comprehensive Financial Report and include:

General Fund Special Revenue Funds Enterprise Funds
Capital Project Funds Internal Service Funds Permanent Funds Standard of Care
In accordance with California Government Code, Section 53600.3, the “prudent investor” standard of care shall be applied to managing the City’s investment portfolio. Pursuant to this standard, when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, the investor shall act with care, skill, prudence, and diligence under the circumstances then prevailing.

This includes, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character, with similar aims, to safeguard the principal and maintain liquidity for the City.

Credit risk is the possibility that deterioration of an issuer’s creditworthiness or potential default on its bonds will adversely affect the value of its bonds. This shall be mitigated by limiting investments to those allowed by this policy. Market or Interest Rate risk is defined as market value fluctuations due to changes in market price, should be mitigated by avoiding selling securities prior to maturity and investing operating funds primarily in shorter-term securities, money market funds or similar investment pools, thereby limiting the average maturity of the portfolio.

Authorized individuals acting in accordance with written procedures, the investment policy and exercising due diligence, shall be relieved of personal responsibility for a specific security's credit risk or market price changes, provided that deviations from expectations are reported in a timely manner, and appropriate action is taken to control adverse developments from impacting the portfolio.

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Objective
The City’s investment objective is to enhance the economic condition of the City while ensuring the safety of the funds invested. The City attempts to obtain the highest yield on its investments consistent with the criteria established for safety and liquidity. The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible.

The three principal factors that are considered when making investments are listed below based on their level of priority:

A. Safety. Safety means limiting the potential for loss of principal, interest, or a combination of the two.

B. Liquidity. Liquidity refers to the ability to convert an investment to cash promptly with a minimal risk of losing principal or interest. A portion of the portfolio should be maintained in liquid short-term securities that can be converted to cash if necessary to meet disbursement requirements.

C. Yield. Yield is the average annual return on an investment based on the interest rate, price, and length of time to maturity. The City attempts to obtain the highest yield possible, provided that the basic criteria of safety and liquidity have been met.

The City’s investment strategy is passive, therefore, the basis used to determine whether market yields are being achieved should be to identify a comparable benchmark to the City’s average portfolio duration (i.e., 1 Year Treasury Bill, CAMP, LAIF). Benchmarks may change over time based on changes in the market or cash flows.

Investment Responsibility
The City Treasurer is responsible for investing the City’s funds in accordance with California Government Code, Sections 53600, et seq. and 53635, et seq. The City’s Administrative Services Director serves as the City Treasurer. Staff members of the Finance Division may be assigned to perform day-to-day treasury activities related to investments. The Deputy Director of Finance (Senior Program Manager) may serve as Acting City Treasurer in the absence of the Administrative Services Director.

Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from any activity that could conflict with proper execution or management of the investment program or which could impair their ability to make impartial investments decisions. This includes refraining from undertaking personal investment transactions with the same individual who is conducting business with the City.

The Administrative Services Director and the Deputy Director of Finance (Senior Program Manager) shall file a State Fair Political Practices Commission’s Statement of Economic Interests annually.

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Internal Controls
The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure the assets of the City are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits require estimates and judgement management. The internal controls should include the following:

D. Dual approval of investment wire transfers from the City E. Separation of transaction authority from accounting and recordkeeping F. Custodial safekeeping
G. Clear delegation of authority to subordinate staff members H. Documentation confirming each investment transaction I. Establishment of wire authorization approval levels for staff J. Reconciliation of investment transactions and statements to the City’s general ledger K. Independent review by the external auditor as part of the City’s annual audit Diversification
Investments shall be diversified among institutions, types of securities, and maturities to maximize safety and yield with changing market conditions.

Safekeeping
All investments of the City shall have the City of Pacific Grove as registered owner or shall be kept in the custody of the City or by a qualified safekeeping institution.

Interest Allocation
Except for cash held in separate restricted accounts, the City will pool cash balances from all funds for investments to maximize earnings and efficiencies with regards to investment administration. The Finance division shall allocate interest to funds based upon their average cash balances and in accordance with Generally Accepted Accounting Principles (GAAP). All earnings not allocated shall be recorded in the General Fund.

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Permitted Investment Instruments
The Treasurer shall invest only in the following investments and only under the guidelines as provided herein.

L. Certificates of Deposit Non-Negotiable Certificates of Deposits will be made only in FDIC or FSLIC insured accounts. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required in accordance with Government Code 53652 and/or 53651 (m) (1).

Investment in these instruments shall be limited to financial institutions that in the Treasurer’s judgment are of high quality and shall not have a term exceeding five years from the date of purchase.

M. Securities of the U.S. Government or its Agencies Includes obligations issued by Federal Home Loan Banks, Government National Mortgage Association, Farm Credit System, the Federal Home Loan Bank, Federal Home Loan Mortgage Association, Federal National Mortgage Association, or obligations or other instruments of or issued by a federal agency or a United States Government sponsored enterprise. Investment in these instruments shall not have a term exceeding five years from the date of purchase.

N. Treasury Bills and Notes U.S. Treasury Bills, Notes, Bonds, or Certificates of Indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest. The term of such securities shall not exceed five years from the date of purchase.

O. Local Agency Investment Fund (LAIF) Investment of funds in the California LAIF which allows the State Treasurer to invest through the Pooled Money Investment Account (PMIA). Maximum investment is subject to state regulation. LAIF investments are available for City use.

P. CAMP Investment Pool California Asset Management Program (CAMP or the Program) is a California Joint Powers Authority (JPA) established in 1989 to provide California public agencies with professional investment services. Investments offered through the Cash Reserve Portfolio (the Pool or the CAMP Pool) and CAMP Term are permitted for all local agencies under California Government Code Section 53601(p).

Q. CLASS and CalTrust Investment Pools Both of these are Joint Powers Authority investment pools that provide public agencies with the opportunity to invest funds on a cooperative basis in rated pools that are managed in accordance with state law with the primary objectives of offering participants safety, daily and next-day liquidity, and optimized returns.

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Permitted Investment Instruments
The Treasurer shall invest only in the following investments and only under the guidelines as provided R. State / Local Agency Debt Issues Must be rated “A” or better by a nationally recognized rating agency. except for the Agency’s own bonds, which may have any rating. These issues include the following:
• Registered state warrants or treasury notes or bonds of the State of California and bonds, notes, warrants, or other evidence of indebtedness of any local agency within California, including bonds payable solely out of the revenues from a property owned, controlled, or operated by the state or local agency.
• Registered treasury notes or bonds of any of the 49 U.S. States in addition to the State of California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 U.S. States.

S. Money Market Funds These must be registered with the Federal Securities and Exchange Commission (SEC), have over $500 million in total assets and only invest in either U.S.

Government or federal agency securities, or other investment instruments specifically included in the local investment policy
T. Debt Reserve Funds Only debt service funds may be invested in the securities listed above for a period exceeding five years, so long as their maturities coincide with the expected use of funds.

The purchase of any security not listed above, but permitted by the California Government Code, is prohibited unless the City approves the investment either specifically or as a part of an investment program approved by the City. Sales prior to maturity are permitted. It is also recognized that in a changing interest rate environment, it may be financially advantageous to sell investments at a book value loss in order to reinvest into a more profitable security.

Investment Pools
The City’s investment policy authorizes participation in the California LAIF, CLASS and CAMP investment pools. A review of these pools should be conducted on a periodic basis. Best efforts will be made to acquire the following information:

U. Description of eligible investment securities, and a written statement of policy V. Description of interest calculations and how gains and losses are distributed W. Description of how the securities are safeguarded
X. Copy of the most recent independent audit report
Y. Description of who may invest in the program
Z. Schedule for receiving statements and portfolio listings AA. Information on how and when fees are assessed
BB. Acceptance or eligibility to receive bond proceeds
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Investment Reports
Reports shall be submitted to the City Council quarterly and include the following data:

CC. Name of financial Institution for individual investments DD. Totals by investment category
EE. Book and market values and interest yields
FF. Compliance with investment policy
GG. Maturity dates on individual investments
HH. Percentage of the portfolio represented by each investment category The report shall include a statement denoting the ability of the City to meet its expense requirements for the next six months or provide an explanation as to why sufficient monies or may not be available during the next six months. The report should include information on overall economic conditions, including trends with inflation, unemployment, sales and treasury rates. Background information on these pools should be included in the report, including information on the distribution of their investments and their interest rate trends.

Investment Policy Adoption
The policy shall be reviewed every two years by the Administrative Services Director and any modifications made must be submitted to the City Council for their approval.

Adopted September 15, 2010, Resolution 10-078
Amended October 21, 2015, Resolution 15-055
Amended August 17, 2016, Resolution 16-047
Amended June 19, 2019, Resolution 19-016
Amended August 4, 2021, Resolution 21-025
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City of Pacific Grove
Council Policy
Subject Policy Number Effective Date Page
Budget and Financial
Management 400-6 June 4, 2025 Page 1 of 7
I. Purpose
This policy is established to help ensure that the City’s resources should be available to fund ongoing City services, incorporaƟng local economic condiƟons and the City Council’s service prioriƟes and that the City’s financial resources are managed in a manner that fosters transparency and confidence among the City Council, ciƟzenry, and staff. The operaƟng and capital budgets should be designed in accordance with the budget award programs of the Government Finance Officers AssociaƟon (GFOA) and the California Society of Municipal Finance Officers (CSMFO).

II. Budget Process
Budget management occurs throughout the year, with ongoing City Council direcƟon and public input.

The City uses a five-year fiscal planning horizon, in which the two year budget is the first two years of the forecast. The forecast helps decision makers idenƟfy important trends and understand long-term consequences of budget decisions. It is a model based on cost and revenue assumpƟons that is updated periodically. Since the degree of revenue and expense uncertainty increases with each year, the forecast only suggests relaƟve future financial condiƟons based on economic assumpƟons made in later years.

The annual budget process begins by February with City Council discussion of goals for the following year.

At this meeƟng, staff present the mid-year report and if completed an updated five year fiscal forecast, including any mid-year budget adjustments required and esƟmates of revenues for the following year(s) and baseline expenditure assumpƟons regarding exisƟng staffing levels and other costs required to conƟnue the current service levels. Using this informaƟon, the City Council provides direcƟon to staff on goals for the following budget year and the future five-year forecast, including goals for services and capital projects and the addiƟonal funding or expenditure reducƟon required to achieve the goals.

The Finance Division of the AdministraƟve Services Department distributes budget instrucƟons and baseline staffing cost informaƟon to department managers for developing the budget. The City Manager and AdministraƟve Services Director work with department directors to develop the budget consistent with Council goals and guidelines previously approved.

The City Manager and AdministraƟve Services Director finalize the recommended budget and present an overview of the General Fund porƟon to the City Council in May. The complete budget is presented at the first City Council meeƟng in June. AŌer public input and discussion at this meeƟng, the City Council directs any needed modificaƟons to the budget and introduces an ordinance to adopt the budget. At the second reading of the ordinance at a subsequent regular City Council meeƟng, the budget is adopted and effecƟve July 1st of the fiscal year. The AdministraƟve Services Director may make any nonsubstanƟve changes aŌerwards to meet the Government Finance Officers AssociaƟon (GFOA) and California Society of Municipal Finance Officer (CSMFO) budget award program comments and criteria.

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III. Cost AllocaƟon
The City uses a formal cost allocaƟon plan and fee study which serves as the basis for allocaƟng central support department costs to operaƟonal funcƟons and developing overhead rates. Central support departments include: City Council, City AƩorney, City Manager, AdministraƟve Services, Mechanical and Building and Grounds Maintenance. Costs are allocated based on the support acƟviƟes, including number of financial transacƟons, square footage of buildings, number of computers, percent of budget, and number of full-Ɵme equivalent employees. Indirect costs are charged to the City’s enterprise and internal service funds based on this method; however, the basis is unique to each fund.

IV. OperaƟng Budget
 The City Council shall adopt an annual operaƟng budget as part of a two year budget, pursuant to ArƟcle 29 of the City Charter, prior to the start of the fiscal year.  General Fund revenue projecƟons for a given year may include a negaƟve conƟngency reserve of up to 2% of total revenues, depending on the general direcƟon of the economy. The need for such a conƟngency can be reevaluated aŌer January 1st of the budget year.  The budget may include an expenditure conƟngency in the General Fund up to 2%, designed to account for unexpected costs or to spend on projects required to advance City Council goals, expressed either explicitly or through the City Council’s work plan.  The operaƟng budget should include revenues sufficient to fund operaƟng expenditures.

Reserves may be used as a resource to fund operaƟons, with City Council approval of such use and a plan for funding future operaƟons within annual anƟcipated revenues.  The budget should provide for maintenance and Ɵmely replacement of fixed assets and equipment working within the fiscal constraints of the City.  AŌer the end of the fiscal year, staff shall present a report to the Council esƟmaƟng the year-end results for the preceding fiscal year. This report shall compare budgeted amounts with the most recent year to date actual figures. Staff shall strive to present to the Council the final Annual Financial Comprehensive Report (ACFR) in January with the final budget and actual figures for the prior fiscal year.
 AppropriaƟons are approved at the fund level. All amendments to the budget where the net impact of the change increases the overall budget of a fund must be approved by the City Council.
 For budget purposes, programs and departments are defined as follows:
• City Council • Police Services
• Legal Services • Fire and Emergency Medical Services
• City Manager’s Office • Library
• Economic Development (City Mgr’s Office) • Museum
• AdministraƟve Services / Risk Management • RecreaƟon
• Community Development • Public Works / Enterprise AcƟviƟes The City Manager or their designee may transfer funds within a given fund and between department appropriaƟons to ensure that program budgets can adapt throughout the year to evolving circumstances.

Departmental appropriaƟons in the 5100 series of the chart of accounts (salary and benefits) that reflect salary and benefit savings, may not be used to offset expenditures in the 5200 series of account codes (services and supplies) or the 6000 series of account codes (capital expense) without the approval of the City Manager or designee.

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V. Five Year Forecast
Staff shall maintain a five-year General Fund fiscal forecast to include revenues, expenditures, as well as the net results of operaƟons and the beginning and ending fund balances for each year of the forecast. The five year forecast should include descripƟons of the assumpƟons used for projecƟng future revenues and expenditures which account for recent trends including inflaƟon, the five year CIP, employee memorandums of understanding (MOUs), debt service schedules and actuarial reports on pension obligaƟons from CalPERS.

VI. Capital Improvement Plan
The City should adopt a five-year capital improvement and maintenance plan, with the first two years of the plan to be appropriated as part of the operaƟng budget. The purpose of the plan is to idenƟfy and prioriƟze capital project needs. The budget shall also include capital expenditures; where possible, such capital expenditures will be funded with non-recurring revenues or grants. At least the first two years of the plan should be fully funded, with funding shorƞalls and challenges idenƟfied in future years.

All esƟmated construcƟon, maintenance, and operaƟng costs and potenƟal funding sources for each proposed capital improvement should be idenƟfied. The City should finance only those capital improvements consistent with the adopted capital improvement plan as amended and City prioriƟes.

VII. Basis of AccounƟng and BudgeƟng
Financial statements are prepared in accordance with General Accepted AccounƟng Principles and all relevant Pronouncements promulgated by the Governmental AccounƟng Standards Board (GASB). All governmental fund types are accounted for using the modified accrual basis of accounƟng. Their revenues are recognized when they become measurable and available as net current assets (usually within 60 days of the end of the fiscal year).

Expenditures are generally recognized for governmental funds under the modified accrual basis of accounƟng when the related fund liability is incurred. An excepƟon to this general rule is principal and interest on general long-term debt, which is recognized when due. All proprietary fund types and nonexpendable trust funds are accounted for using the accrual basis of accounƟng. Revenues are recognized when earned, and expenses are recognized when incurred.

The budgeƟng basis is the same as the basis of accounƟng, except for the exclusion of non-cash expenditures, such as depreciaƟon, changes to the pension and OPEB liability, amorƟzaƟon of bond premiums and discounts, and for proprietary funds, the inclusion of capital expenses, debt service and loan proceeds. Finance is authorized to carryover any unspent and encumbered funds from the prior year for operaƟons and capital projects and any other unspent funds for acƟve capital projects, to be reappropriated in the current year’s budget for conƟnued use in the same manner so long as there are sufficient available fund balances to finance these commitments.

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VIII. Annual Audit and ReporƟng
The City shall undertake an annual independent audit. The City’s Annual Comprehensive Financial Report (ACFR) should be completed no later than December 31 of each year and shall be in accordance with audiƟng standards established by the Governmental AccounƟng Standards Board (GASB).

Staff should prepare the ACFR and the related Popular Annual Financial Report (PAFR), a summary of the ACFR, in accordance with the GFOA CerƟficate Program and include the independent auditor’s opinion. A separate “management leƩer” shall be issued by the auditor that will address weaknesses and include recommendaƟons for improvements in internal control and accounƟng procedures.

In addiƟon to the reports menƟoned above, the following are required to be issued on an annual basis:
 Single Audit reports are required when the City receives at least $1 million of direct or pass through federal grants.
 The City shall prepare the following reports in a format as prescribed by the State. • State Controller’s Report • Employee CompensaƟon
• AppropriaƟons (Gann) Limit • Impact Fees
IX. Fund Reserves
Reserves are established to ensure that sufficient resources should be maintained in the specified funds listed below in amounts sufficient to manage reasonable risks, meet unanƟcipated needs, capitalize on opportuniƟes, and provide for reasonable conƟngencies. Further, reserve balances should be categorized and prioriƟzed in accordance with GASB Statement #54, which are classified as either commiƩed, assigned, or unassigned.

If reserve balances fall below the stated target amount, the City will strive to restore reserves to the stated level within four fiscal years. The actual City reserve balances shall be reported each year, along with City reserve policy levels. The reserve informaƟon should appear in the ACFR. Unrestricted fund balance levels will be sufficient to meet funding requirements for approved programs or projects which are carried forward from the prior year; debt service reserve requirements; commitments for encumbrances; and other restricƟons, commitments or assignments required by contractual obligaƟons, state law and generally accepted accounƟng principles.

X. General Fund Reserves
The City should maintain a minimum unassigned fund balance of at least 25% of operaƟng and debt service expenditures in the General Fund for fiscal stability, cash flow, conƟngencies and strategic opportuniƟes, including addressing the following in accordance with policies developed by the GFOA:
 Revenue source stability, local disasters and other downturns in the local or naƟonal economy  ConƟngencies for unseen operaƟng or capital needs
 Strategic investment opportuniƟes in the community approved by Council  The need to provide short-term bridge financing to other funds  InsƟtuƟonal changes, such as State budget takeaways and unfunded mandates PGCC 6-4-25
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X. General Fund Reserves (ConƟnued)
Reserves should not be used to fund ongoing costs or projected systemic “gaps.” on a perpetual basis.

They should be restricted to one-Ɵme or short-term uses. The Council may also commit or assign specific General Fund balance levels above the reserve target for capital replacement (based upon the five year capital improvement program), technology and vehicle replacement (based upon future expected replacement costs), unfunded pension and compensated absence liabiliƟes or other long-term goals that it determines to be in the best interests of the City, with a minimum reserve level of $500,000 each for unfunded liabiliƟes related to pension and compensated absences, and capital replacement.

In any fiscal year where revenues and transfers in exceed expenditures and transfers out, the annual surplus for the fiscal year should be allocated first to help meet the reserve policies for the General and Insurance Internal Service Funds. Any remaining surplus should be allocated ⅓ towards reserves for capital, technology and vehicle replacement, ⅓ towards addressing unfunded pension and long-term liabiliƟes, and ⅓ towards other Council prioriƟes or to build up reserves for the future.

XI. Golf Fund Reserves
The purpose of the Golf Fund is to enable the operaƟon of the golf course as an enterprise without operaƟng subsidies from the General Fund, unless deliberately authorized. The City should maintain establishes a target reserve level of 25% of budgeted expenditures of the Golf Fund for the fiscal year, to be used for capital improvements, cash management, and for unexpected operaƟng expenses.

XII. Sewer / Insurance Internal Service Funds Reserves
The Sewer Fund should maintain a reserve to fund at least two years of projects to be funded by the Sewer Fund in the City’s five year capital improvement plan and as a rate stabilizaƟon reserve. The Insurance funds should maintain a balance of current assets equal to 75% of total liabiliƟes, or higher, should actuarial analysis conclude an imminent higher risk to the City for losses. Note that for these insurance funds the City’s Self-Insured RetenƟon Limit is $150,000 per claim.

XIII. CapitalizaƟon Policy
All capital outlay with an original cost > $5,000 and a useful life > one year is subject to capitalizaƟon.

The capitalizaƟon threshold is applied to individual units of fixed assets:
 To be adjusted in increments of $1,000 based upon changes in the Consumer Price Index (CPI)  Repair costs for fixed assets to be capitalized when it extends the useful life of the asset  For construcƟon in progress, no depreciaƟon is recorded unƟl the asset is placed in service  The City shall use the straight-line method for depreciaƟng all fixed assets  DepreciaƟon should begin in the fiscal year the asset is placed in service Any capital Improvement project related to buildings, infrastructure, machinery, or equipment, with a useful life > one year and a total cost (including installaƟon) > $50,000 or more is subject to capitalizaƟon.

This amount should be adjusted in increments of $5,000 in future years based on changes in the Engineering ConstrucƟon Index (ENR). Capital project appropriaƟons should remain in effect for the life of the project unless modified by the City Council.

Fixed assets acquired by giŌ, donaƟon or payment of a nominal sum not reflecƟve of the asset’s market value shall be assigned cost equal to the fair market value at the Ɵme of receipt.

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XIII. CapitalizaƟon Policy (ConƟnued)
The following represents the useful life schedule to be used for capital outlay and capital projects:

DescripƟon Useful Life (In Years)
Buildings 20-100
Machinery, equipment and furniture 5-7
Infrastructure:

Improvements other than buildings 5-30
Sidewalks, curbs, guƩers, streets, storm drains 20-50
Traffic signals / Street signs 15
Park equipment 10-50
XIV. Property AcquisiƟon and DisposiƟon
AcquisiƟon of real property should be Ɵed to a specific objecƟve, with the source of adequate funds idenƟfied and consideraƟons given for the long-term fiscal and policy impacts. DisposiƟon of real property should be considered for those properƟes without specific deed restricƟons and that are unused, under-uƟlized, economically not viable, or that were acquired for an outdated plan or purpose.

XV. Cash and Investments
The City shall manage the treasury in compliance with California Government Code SecƟon 53600, City Council Policy 400-5 and investment policy standards established by the California Municipal Treasurers AssociaƟon (CMTA), California Debt and Investment Advisory CommiƩee (CDIAC) and the AssociaƟon of Professional Treasurers of the US and Canada (APTUSC). The policy should be reviewed by the AdministraƟve Services Director on an annual basis, with any necessary revisions presented for consideraƟon as needed by the City Council. Investment reports shall be presented to the City Council on a quarterly basis and warrant lisƟngs on a monthly basis. The selecƟon of investments shall be based on consideraƟons of safety, liquidity, and yield, in order of decreasing priority.

XVI. Debt Management
The City should manage its debt in conformance with policies established by CDIAC and SB 1029, which provide the parameters to be addressed in a debt policy, including the purposes for which debt proceeds may be used, the types of debt that may be issued, the relaƟonship of the debt to, and integraƟon with, the capital improvement program or budget, the policy goals related to the City’s planning goals and objecƟves, and the internal control procedures implemented to ensure the proceeds of a proposed debt issuance will be directed to the intended use. All issuance of debt requires prior City Council approval.

Long-term borrowing should be restricted to the purpose of funding capital improvement projects and equipment. The use of long-term borrowing for ongoing operaƟons should be avoided. The term of the debt should not exceed the expected useful life of the object of the financing. Debt obligaƟons shall be prioriƟzed in the budget process and payments shall be made in a Ɵmely and efficient manner. The annual bonded debt service should not exceed 15% of the annual budget.

Staff will Ɵme the issuance of debt to ensure that funds are available as needed for projects in the City’s Capital Program and to integrate those costs into its five year forecast and into its projecƟons of fund reserve levels and how they align with reserve goals established by City Council, including ensuring that the debt service has been incorporated into its rate studies as applicable.

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XVI. Debt Management (ConƟnued)
The types of long-term debt that can be issued include the following:
 Revenue Bonds / Bond AnƟcipaƟon Notes
 CerƟficates of ParƟcipaƟon or Lease Revenue Bonds
 Federal and State Government Loans (Includes USBR/SRF/WIFIA)  Lines of Credit / Refunding Bonds / Privately Placed Debt (Bank Loans)  Loans, including Equipment / Capital Lease Financing and Commercial Paper  Assessment and Special Tax (Mello Roos) Bonds
Refunding techniques should be employed where appropriate to allow for restructuring of outstanding debt to remove or change restricƟve covenants, and/or to reduce annual debt service in an amount sufficient to jusƟfy the costs related to restructuring the debt, usually considered to be savings with a net present value of at least 3%.

In circumstances where short-term borrowing (i.e., fewer than 12 months) is required to ensure cash flow demands may be met, either Tax and Revenue AnƟcipaƟon Notes (TRAN), interfund loans or a commercial line of credit can be used, factoring in costs and administraƟve efficiencies.

The City will use the following internal controls regarding the use of bond proceeds: a.) Finance staff to review the approved use of bond proceeds with department staff authorized to iniƟate contracts to ensure proper use of funds. b.) Finance will educate staff responsible for preparing purchase orders and processing payments as to proper account coding and items that can be expended using bond proceeds and c.) the AdministraƟve Services Director will review and approve all draw-down requests.

XVII. Long-Term Interfund Loans
City Council approval is required prior to the establishment of an interfund loan agreement of more than one year, incorporaƟng the following terms into the interloan agreement;  A specific repayment date for the loan
 Borrowing fund should pay interest at least at the rate earned on the City’s pooled investments  Specific revenue pledged to repay the loan based on realisƟc expectaƟons for receipt  Funds pledged for repayment must be above the funds needed for annual operaƟons; and  Interfund loans may be made from grant funds only if specifically authorized by the grantor Acronyms
USBR United States Bureau of ReclamaƟon
SRF State Revolving Fund
WIFIA Water Infrastructure and InnovaƟon Act
Adopted: ResoluƟon 11-086 November 2, 2011
Amended: ResoluƟon 14-063 October 1, 2014
Amended: ResoluƟon 15-055 October 21, 2015
Amended: ResoluƟon 16-048 September 7, 2016
Amended: ResoluƟon 18-008 March 7, 2018
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City Of Pacific Grove
City Council Policy
Policy Governing Policy No. Effective Date Page
Council Goals 000-26 November 17, 2021 1 of 1
I. Procedure

1. Following a general election all newly elected Councils will prepare a set of Council goals and accompanying strategies during the first quarter, i.e. January 1 – March 31.

2. Council goals will normally build on prior Councils’ goals but reflect changing city priorities.

3. Ideally Council goals are SMART (Specific, Measurable, Achievable, Relevant, and Time- Bound).

4. Council goals should be reviewed by City Manager for achievability. For example, goals may require additional resources.

5. Council goals form the basis for the City's spending plan priorities - the adopted annual fiscal year budget.

6. City Manager is responsible for providing direction to City staff to determine the implementation process.

7. City Manager in coordination with staff creates a corresponding work plan to measure progress and provide a "scorecard" of the effort.

8. City Manager provides periodic work plan updates to Council.

Adopted November 17, 2021 - Resolution No.21-032
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City of Pacific Grove
Long-Term Debt Obligations per ACFR
For the Year Ended June 30, 2024
Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2024 is as follows:

Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Due within
One Year
Due in more
than One Year
Publicly Offered:

Taxable Pension Obligation Bonds $ 2,671,688 $ - $ (478,599) $ 2,193,089 $ 464,276 $ 1,728,813 Accreted Interest 4,731,877 459,626 (926,401) 4,265,102 985,725 3,279,377 Subtotal 7,403,565 459,626 (1,405,000) 6,458,191 1,450,001 5,008,190 Direct Borrowing: PG&E
Loan 51,451 - (20,048) 31,403 12,562 18,841
SBITA Liability 317,788 20,846 (137,896) 200,738 105,745 94,993 Totals $ 7,772,804 $ 480,472 $ (1,562,944) $ 6,690,332 $ 1,568,308 $ 5,122,024 Taxable Pension Obligation Bonds
On June 1, 2006, the City issued Taxable Pension Obligation Bonds in the principal amount of $19,365,355. The bonds were part of the California Statewide Communities Development Authority Taxable Pension Obligation Bonds Program. The purpose of the bonds is to provide monies to meet the unfunded accrued actuarial liability ("UAAL") to the California Public Employee's Retirement System ("PERS"). Semi-annual payments are due on June 1 and December 1. Interest on the bonds ranges from 5.67% to 6.12% and will mature on June 1, 2029.

The annual debt service requirements were as follows for the Pension Obligation Bonds:

Fiscal Year Principal Interest Total
2025 $ 464,276 $ 985,724 $ 1,450,000
2026 451,350 1,048,650 1,500,000
2027 437,699 1,107,301 1,545,000
2028 425,418 1,169,582 1,595,000
2029 414,346 1,235,652 1,649,998
Totals $ 2,193,089 $ 5,546,909 $ 7,739,998
PG&E Loan
The City benefited from the on-bill financing program offered by PG&E, which is a non-interest bearing, reimbursement basis loan to install energy-efficient equipment. Individual PG & E loans have been issued for various City locations. All loans mature beginning on February 15, 2022, and conclude on December 15, 2026.

The original loan was $152,900 with future debt service payments as follows:

Fiscal Year Principal Total
2025 $ 12,562 $ 12,562
2026 12,562 12,562
2027 6,279 6,279
Totals $ 31,403 $ 31,403
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City of Pacific Grove
Long-Term Debt Obligations per ACFR
For the Year Ended June 30, 2024
Subscription Payable
The City entered into subscription agreements with various vendors for software. The terms of the agreements are ranging from 24 months to 130 months. The calculated interest rates range from 1.85% to 3.25%. As of June 30, 2024, the capitalized right-to-use assets related to SBITAs were $298,136 and the total subscription liability was $200,738.

The future subscription payments are as follows:

Fiscal Year Principal Interest Total
2025 $ 105,745 $ 7,185 $ 112,930
2026 18,843 4,481 23,324
2027 12,117 9,540 21,657
2028 12,341 7,255 19,596
2029 12,570 5,130 17,700
2030-2032 39,122 4,164 43,286
Total $ 200,738 $ 37,755 $ 238,493
Business Type Activities
A summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2024 is as follows:

Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Due within
One Year
Due in more
than One Year
Publicly Offered:
2013 Wastewater Revenue
Refunding Bond $ 639,629 $ - $ (65,925) $ 573,704 $ 70,044 $ 503,660 Direct Borrowing:

Clean Water Revolving Fund Loan 4,546,643 - (160,982) 4,385,661 162,592 4,223,069 2014 Golf Course Site Lease 1,725,451 - (199,183) 1,526,268 207,941 1,318,327 Total $ 6,911,723 $ - $ (426,090) $ 6,485,633 $ 440,577 $ 6,045,056 2014 Golf Course Site Lease
The City entered into a $3,130,505 Site Lease dated September 1, 2014 with Umpqua Bank to Refund the 2014 Golf Course Certificate of Participation. The lease bears interest at 4.35% with debt service payments due on February 1st and August 1st through 2030. The lease is secured by the transfer of property rights to Umpqua Bank.

The annual debt service requirements were as follows for the 2014 Golf Course Site Lease:

Fiscal Year Principal Interest Total
2025 $ 207,941 $ 64,156 $ 272,097
2026 217,085 55,012 272,097
2027 226,631 45,466 272,097
2028 236,597 35,500 272,097
2029 247,000 25,096 272,096
2030-2031 391,014 17,131 408,145
Total $ 1,526,268 $ 242,361 $ 1,768,629
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City of Pacific Grove
Long-Term Debt Obligations per ACFR
For the Year Ended June 30, 2024
Clean Water State Revolving Fund Loan
In November 2015, the City secured State Water Resources Control Board ("SWRCB") funding for the construction of a recycled water treatment plant, sewer diversion structure, waste pump and force main station, user connections and site retrofits. The SWRCB reimbursed the City for project-related expenditures, as incurred, totaling $5,328,076. The loan will be repaid with interest at 1% per annum. The loan matures on February 1, 2048.

The annual debt service requirements were as follows for the Clean Water State Revolving Fund Loan:

Fiscal Year Principal Interest Total
2025 $ 162,592 $ 43,857 $ 206,449
2026 164,218 42,231 206,449
2027 165,860 40,589 206,449
2028 167,518 38,930 206,448
2029 169,194 37,255 206,449
2030-2034 871,686 160,554 1,032,240
2035-2039 916,152 116,089 1,032,241
2040-2044 962,887 69,356 1,032,243
2045-2048 805,554 20,239 825,793
Total $ 4,385,661 $ 569,100 $ 4,954,761
2013 Wastewater Revenue Refunding Bond
On May 6, 2013, the City issued the 2013 Wastewater Revenue Refunding Bonds in the principal amount of $1,220,588. The purpose of the bond is to refinance the California State Community Development Authority Series 2001B Revenue Bonds. Semi-annual interest payments are due on April 1 and October Repayments are secured by future sewer service revenues. Interest on the bonds is 3.35% and matures on October 1, 2031.

The annual debt service requirements were as follows for the 2013 Wastewater Revenue Refunding Bond:

Fiscal Year Principal Interest Total
2025 $ 70,044 $ 18,645 $ 88,689
2026 71,550 16,264 87,814
2027 72,937 13,876 86,813
2028 76,789 11,400 88,189
2029 78,018 8,795 86,813
2029-2032 204,366 10,418 214,784
Totals $ 573,704 $ 79,398 $ 653,102
Compensated Absences
The changes in compensated absences of governmental and business-type activities are as follows:

Classification
Balance
July 1, 2023 Additions Deletions
Balance
June 30, 2024
Due Within
One Year
Due in More
Than One Year
Governmental activities $ 1,334,882 $ 1,063,224 $ (1,199,053) $ 1,199,053 $ 299,763 $ 899,290 Business-type activities 184,709 136,453 (160,581) 160,581 40,146 120,435 PGCC 6-4-25
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ORDINANCE NO. 25-xxx

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE ADOPTING

THE OPERATING AND CAPITAL PROJECTS BUDGET FOR
THE FISCAL YEAR (FY) 2025-26;
FACTS

1. The City Council held a public hearing and first reading of an ordinance to adopt the FY 2025-26 Operating and Capital Projects Budget.

2. The City Manager is recommending adoption of the FY 2025-26 Budget to reflect the City Council’s expressed goals for the fiscal year budget.

3. Pursuant to Charter Article 15, adoption of the annual budget and or amendment of the budget must be approved by ordinance.

4. A summary of the Ordinance, approved by the City Attorney, was published on .

5. 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.

6. Enactment of this ordinance does not constitute a “project” as defined by California Environmental Quality Act (CEQA) and as such is not subject to/exempt from CEQA because it is an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment and involves the creation of a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:

SECTION 1. The foregoing recitals are adopted as findings of the City Council as set forth fully within the body of this ordinance.

SECTION 2. That the City Council does hereby approve and adopt the operating budget and capital improvement program for the City for FY 2025-26, and that they hereby authorize the City Manager and Administrative Services Director to make any non-substantive changes as needed to meet Government Finance Officers Association (GFOA) and California Society of Municipal Finance Officer (CSMFO) budget award program comments and criteria.

SECTION 3. That the City Council authorizes at the closeout of Fiscal Year 2024-25 by the Finance Division of the Administrative Services Department the carryover of any unspent and encumbered funds for operations and capital projects and any other unspent funds for active capital projects, to be reappropriated in the Fiscal Year 2025-26 budget for continued use in the same manner so long as there are sufficient available fund balances to finance these commitments.

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 18th day of June, 2025, by the following vote:

AYES: ABSENT:

NOES:

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City of Pacific Grove Budget
Appropriations Limit
Fiscal Year 2025-26
County City California Budgeted % %
Fiscal Population Population Per Capita Tax of Limit
Limit Factor Factor Income Limit Revenues Limit Increase 2020 37,310,602 1.0091 1.0048 1.0385 39,099,658 20,195,000 52% 4.80% 2021 39,099,658 0.99690 0.9938 1.0373 40,432,345 16,821,000 42% 3.41% 2022 40,432,345 0.99520 0.9978 1.0573 42,655,071 19,319,000 45% 5.50% 2023 42,655,071 0.99380 0.9879 1.0755 45,591,100 22,629,000 50% 6.88% 2024 45,591,100 1.00080 0.9984 1.0444 47,653,437 24,336,000 51% 4.52% 2025 47,653,437 1.00940 1.0063 1.0362 49,842,649 25,660,000 51% 4.59% 2026 49,842,649 1.00150 0.9957 1.0644 53,132,095 27,861,900 52% 6.60% Year
Beginning Ending
The Gann Initiative was approved by California voters in November 1979. The purpose was to limit the spending of tax proceeds by government agencies by limiting expenditures. An agency is restricted from approving expenditures in excess of its limit. If a City receives more revenue than the appropriation limit, the revenue must be returned to the taxpayers through a tax reduction or refund.

Before each fiscal year, the City Council must adopt, by resolution, an appropriations limit using the cost of living data provided by the state of California, and population and per capita income data provided by the California Department of Finance. The limit is different for each agency and changes each year. The limit can be increased for an emergency as declared by the Governor.

The City’s applicable budgeted revenues and appropriations limit are shown below. The calculations below show that the City is well below the limit, as has been the case during the past six fiscal years. $39.1 $40.4 $42.7 $45.6 $47.7 $49.8 $53.1
$20.2 $16.8 $19.3 $22.6 $24.3 $25.7 $27.9
2020 2021 2022 2023 2024 2025 2026 In Millions
City Appropriation Appropriations Limit Analysis
Appropriations Limit Budgeted Tax Revenues
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RESOLUTION NO. 25-

RESOLUTION OF THE CITY OF PACIFIC GROVE ESTABLISHING THE FISCAL YEAR 2025-26 APPROPRIATION LIMIT

FINDINGS

1. The City is required to establish an appropriations limit for each fiscal year in accordance with Article XIIIB of the Constitution of the State of California (related to Proposition 4 on the November 6, 1979 ballot) and Proposition 111 passed by the voters in June 1990 expanding the growth factors that can be used in the calculation.

2. The City Council conducted a public hearing regarding the City’s Fiscal Year 2025-2026 Appropriation limit on June 18, 2025.

3. The public hearing was noticed and advertised as required by law.

4. The Council received testimony and other evidence regarding the Appropriation Limit to be established for the City.

5. The Council elects to use the change in California per capita personal income and change in population for the County of Monterey as adjustment factors to calculate the City’s Appropriation Limit for the Fiscal Year 2025-2026.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE:

1. The foregoing Findings are adopted as findings of the City Council as though set forth in full.

2. The Appropriation Limit for Fiscal Year 2025-2026 shall be $ 53,132,095.

3. The Notice of Public Hearing and State of California Department of Finance calculation factors are hereby approved and by this reference are incorporated as set forth in its entirety.

4. This Resolution shall take effect immediately following passage and adoption.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this 18th day of June 2025, by the following vote:

AYES:

NOES:

ABSENT:

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City of Pacific Grove Budget
Fiscal Years 2025-26 and 2026-27
Acronyms
ACFR Annual Comprehensive Financial Report HID Hospitality Improvement District ADA Americans with Disability Act HOPTR Home Owners’ Property Tax Relief ADU Accessory Dwelling Unit HUD US Dept Housing & Urban Development ARPA American Rescue Plan Act (2021) ISF Internal Services Fund ASBS Area of Special Biological Significance LCP Local Coastal Program BID Business Improvement District LWP Local Water Project CalPERS California Public Employees Retirement System M1W Monterey One Water CAP Climate Action Plan MCWRA Monterey County Water Resources Agcy CDBG Community Development Block Grant MEA Management Employee Association CDC Center for Disease Control and Prevention MOU Memorandum of Understanding CIP Capital Improvement Plan MPWMD Monterey Peninsula Mgmt Water District CJPIA California Joint Powers Insurance Authority NFPA National Fire Protection Association COLA Cost of living adjustment NPDES National Pollution Dischg Elimination Sys.

COPS Certificates of Participation OES Office of Emergency Services COVID Coronavirus Disease OPEB Other Post-Employment Benefits CPI Consumer Price Index PARSAC Public Agency Risk Sharing Authority CSMFO California Municipal Finance Officers Association PCI Pavement Condition Index CSO Community Services Officer PGPL Pacific Grove Public Library DEI Diversity, Equity and Inclusion PEG Public, Educational and Governmental DOF State Department of Finance PEPRA Public Employees’ Pension Reform Act DOJ Department of Justice PERS Public Employee’s Retirement System EMS Emergency Medical Services POA Police Officers Association EMT Emergency Medical Technician POB Pension Obligation Bond ERAF Educational Revenue Augmentation Fund POST Peace Officer Standards and Training ERP Enterprise Resource Planning System PUB Public Utilities Board FDIC Federal Deposit Insurance Corporation RMS Records Management System FEMA Federal Emergency Management Agency RSTP Regional Surface Transportation Program FHWA Federal Highway Administration SCSMP Sewer Collection System Master Plan FLSA Fair Labor Standards Act STR Short Term Rental
FORA Fort Ord Reuse Authority TAMC Transportation Agency Monterey County FTE Full-Time Equivalent TOT Transient Occupancy (Hotel) Tax GAAP Generally Accepted Accounting Principles TUT Transaction and Use Tax GASB Governmental Accounting Standards Board TRAN Tax and Revenue Anticipation Note GEA General Employees Association UUT Utility User Tax
GFOA Government Finance Officers Association VLF Vehicle License Fee GIS Geographic Information Systems VOIP Voice Over Internet Protocol (Phones) PGCC 6-4-25
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City of Pacific Grove
Glossary
Accrual
A revenue or expense that has been earned or incurred;
and recorded to align with the proper reporting period.

Appropriation
An authorization by the City Council to make
expenditures and to incur obligations for a specific
purpose within a specific time frame.

Assessed Valuation
A dollar value placed on real estate or other property by Monterey County as a basis for levying property taxes.

Available Fund Balance
The net difference between cash, accounts receivable,
and current liabilities. The new appropriations are
netted to arrive at the estimated ending fund balance.

Audit
Scrutiny of the City’s accounts by an independent auditing firm to determine whether the City’s financial statements are fairly presented in accordance with generally
accepted accounting principles.

Balanced Budget
The budget for a fund is balanced when total budgeted
resources, including revenues, transfers in from other
funds, and unrestricted fund balance from previous
years meet or exceed total budgeted use of resources,
including expenditures and transfers out to other funds.

Base Budget
The base budget can be used to reference the original
starting point for multi-year projections. It can also
be considered the initial adopted budget.

Beginning Fund Balance
Unencumbered resources available from prior years.

Bond
Capital raised by issuing promise to pay a specified sum of money, called the face value or principal amount,
with interest at predetermined intervals.

Budget
A fiscal plan of financial operation listing an estimate of proposed application or expenditures and the proposed
means of financing them. The budget must be approved
by the City Council prior to the beginning of the fiscal year.

Public Employee Retirement Systems (CalPERS)
The retirement system, administered by the
State of California, to which all full-time long
term City employees belong to.

Capital Asset / Capital Outlay
Land, infrastructure, and equipment used in
operations that have initial useful lives greater
than three years. The City, by provision of the
Council Policy 400-6, has set the capitalization
threshold for reporting capital assets at $5,000.

Expenditures made for Capital Assets are
commonly referred to as “Capital Outlay,” and
are shown in each fund and/or department.

Certificates of Participation (COPs)
A lending agreement secured by a lease on the
acquired asset or other assets of the City.

Debt Service
Payment of the principal and interest on an
obligation resulting from the insurance of
bonds, notes, or certificates of participation
(COPs).

Deficit
An excess of expenditures over revenues
(resources).

Department
An organizational unit comprised of divisions or
functions. It is the basic unit of service
responsibility encompassing a broad mandate
of related activities.

Encumbrances
A legal obligation to pay funds for expenses yet
to occur, such as when a purchase order has
been issued but the related goods or services
have not yet been received.

Enterprise Fund
A type of fund established for the total costs of
those governmental facilities and services
which are operated in a manner similar to
private enterprise.

Fiscal Year
For the City, July 1st through June 30th.

Historic
Buildings
1886
1887
1926
1887
1905
1883
1894
1887
1887
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City of Pacific Grove
Glossary
Full-Time Equivalent (FTE)
The number of full-time hours worked by an employee or
the percentage of hours equivalent to 40 work hours.

Fund
An independent fiscal and accounting entity with a selfbalancing set of accounts, used to record all financial transactions related to the specific purpose for which
the fund was created.

Fund Balance
The difference between fund assets and fund liabilities.

Gann Limit
State of California legislation that limits a City’s
appropriations growth rate to changes in population and either the change in California per capita income or the change in the local assessment roll due to nonresidential new construction.

General Fund
The primary fund of the City used to account for all
revenues and expenditures of the City not legally
restricted as to use. This fund is used to accumulate the cost of the City’s general operations.

General Obligation Bond
Bonds backed by the full faith and credit of the City, used for various purposes and repaid by the regular revenue
raising powers (generally property taxes) of the City.

Governmental Fund
Funds used to account for activities primarily supported by taxes, grants, and similar revenue sources.

Grant
Contribution or gifts of cash or other assets from
another governmental entity or foundation to be used
or expended for a specific purpose, activity or facility.

Indirect Cost Allocation
To ensure that non-General fund revenues support a
proportionate share of administrative services, these
costs are allocated across all operational costs.

Infrastructure
Facilities on which the continuance and growth of
the community depend, such as roads, sidewalks,
parks, public buildings, sewer lines, etc.

Internal Service Fund
An Internal Service Fund provides services to
other City departments and bills the various
other funds for services rendered, just as
would private business.

Materials, Supplies and Services
Expenditures for operating items which are
ordinarily consumed within a fiscal year.

Memorandum of Understanding
The result of labor negotiations between the
City of Pacific Grove and its bargaining units.

Multi-Year Forecast
A five-year projection of revenues and
expenditures to assist with planning and
identifying milestones. The forecast is not a
budget, but more of a planning tool.

Non-Departmental
Appropriations of the General Fund not directly
associated with a specific department.

Expenditure items and certain types of
anticipated general savings are included.

Ordinance
A formal legislative enactment by the City
Council. It has the full force and effect of law
within the City boundaries.

Permanent Fund
Accounts for financial resources where the
principal is restricted, committed, or assigned
for a specific usage; and only the interest
earnings are transferred for use in the
corresponding enterprise or governmental
funds. These funds may also be referred to as a
Trust Fund.

Resolution
A special order of the City Council, which has a
subordinate legal standing than an ordinance.

Special Revenue Fund
This fund type is used to account for City
revenues from sources that, by law or
administrative action, are designated to finance
particular functions or activities of government.

Butterflies
in PG
PGCC 6-4-25
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Agenda No. 11 C

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Matthew Mogensen, City Manager
MEETING DATE: June 04, 2025
SUBJECT: Consideration of Potential Ordinance of the City Council of the City of Pacific Grove Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Discuss potential Ordinance of the City Council of the City of Pacific Grove Repealing Chapter

3.40 of the Pacific Grove Municipal Code on the Economic Development Commission (Attachment 1). If the Council directs to proceed with the potential Ordinance, then the following are the recommended actions.

1. 2. Request the City Attorney read the title of the ordinance.

3. Motion to waive further reading of the ordinance.

Introduce and hold a first reading of an Ordinance of the City Council of the City of Pacific Grove Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission.

4. Direct that publication of the ordinance will be satisfied by publication of a summary approved by the City Attorney.

5. 6. Other action related to this Agenda Item

DISCUSSION
On December 18, 2024, the City Council held a discussion regarding the efficiency and effectiveness of the Economic Development Commission (EDC) and if a staffing alternative would create a larger impact to economic development efforts in Pacific Grove.

Following the discussion the City Council approved two motions. The first motion directed the City Manager to separate the Economic Development Commission budget to assist with funding a full-time City staff position and begin the process of recruitment for that position. The second motion authorized the Mayor to make appointments to the EDC for a two-year term with a letter to appointed applicants that the EDC will be evaluated in 2025 which may impact their term.

The City of Pacific Grove’s Economic Development Commission (EDC) is governed by PGMC Chapter 3.40 (Attachment 2). The Ordinance provides that the Commission consists of seven voting members appointed by the mayor and approved by the council. In addition, the president of the Pacific Grove Chamber of Commerce serves as an ex officio, nonvoting member. Voting members of the PGCC 6-4-25
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Grove Chamber of Commerce serves as an ex officio, nonvoting member. Voting members of the Commission are to be persons selected for their business knowledge and interest in economic development issues. Four members are required to be owners or managers of businesses or commercial property located in a commercial business district in Pacific Grove. The three other members can be residents registered to vote in the City of Pacific Grove.

The powers and duties of the EDC provided include:

Devise and recommend economic development and enhancement strategies and programs to the city manager and council; and
Assist the city’s businesses and job seekers in their efforts; and Help meet the shopping and service needs of local residents by promoting retail business interests; and
Ensure coordination of efforts by the Pacific Grove chamber of commerce, the Pacific Grove business improvement district, the hospitality improvement district, the Monterey County convention and visitors bureau and the city; and
The Commission has met monthly to discuss on-going subcommittee work efforts and consider requests for funding from the City Council allocated EDC contribution. These funds have been reallocated following City Council direction on December 18, 2024.

Present status
• The EDC currently has four active commissioners. Since the Mayor appointed the new commission of seven in January 2025, 3 have resigned.
• The EDC has had to cancel 3 meetings since January due to lack of quorum.

A City staff business liaison was appointed and is beginning work to serve the businesses of the city.

This work will primarily include items listed as the powers and duties of the EDC listed in PGMC Chapter 3.40.

Re-evaluation of Efficiency and Effectiveness of the EDC In addition to the direction the City Council provided to staff at the December 18, 2024, City Council Meeting, Council also provided general feedback that the EDC should be re-evaluated once again after a City staff business liaison was appointed to facilitate economic development programs and activities for the City. This action has now occurred.

In January of 2025, the Mayor made appointments to fill the seats on the EDC with a total of 7 members. Unfortunately, 3 of the appointees have decided to resign and the remainder of the commission has had to cancel 3 meetings due to lack of quorum.

Due to a City staff member now ready to undertake the EDC duties and the EDC having difficulties meeting to begin its business this year, City staff’s analysis is that continuing the EDC is no longer efficient or effective and it is now time to sunset the Commission.

Staff is recommending that the City Council consider holding a public hearing and considering approval of the potential Ordinance repealing PGMC Chapter 3.40 (Attachment 1).

OPTIONS
Take an alternative action or do nothing.

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Take an alternative action or do nothing.

FINANCIAL IMPACT:

There is no additional fiscal impact related to this item at this time.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Proposed Ordinance Resending PGMC Chapter 3.40
Chapter 3.40 Economic Development Commission
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