Pacific Grove City Council
June 18, 2025

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$ Lighthouse 127,997 90,000 120,815 126,916 - 135,351
Recreation Donations 13,325 10,500 12,049 11,475 975 11,475 Total Revenues / Transfers 144,946 101,000 135,093 139,996 2,080 148,431 Expenses / Transfers
Stillwell Children's Pool 11,756 - 18,000 7,535 18,000 8,000 Lighthouse 99,058 141,500 123,611 131,908 (9,592) 133,946 Recreation Donations - - - 38,000 38,000 -
Total Expenses / Transfers 110,814 141,500 131,146 187,908 46,408 141,946 Net Change 34,132 (40,500) (47,912) 3,947 (44,328) 6,485 Ending Available Reserves
Stillwell Children's Pool (24) 35,491 35,991 30,185 13,790 (22,201) 7,395 Lighthouse (27) 229,163 188,663 233,110 185,198 191,683 Recreation Donations (25) 46,915 57,415 58,964 32,439 (24,976) 43,915 Available Ending Reserves 311,569$ 282,069$ $ 322,259 231,428$ (47,176)$ 242,993$ 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.

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.
$145
$135
$140
$148
$111
$131
$188
$142
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues $312
$322
$231
$243
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 53 PGCC 6-18-25

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$ 491$ 11,491$ Environmental Enhancement 5,879 1,000 3,891 2,802 1,802 2,802 Downtown Business District 39,015 31,750 3,415 33,500 1,750 33,500 Hospitality Imp. District 559,658 663,900 541,280 528,200 (135,700) 554,560 Reiko Koo Estate Donations 1,114 300 676 487 187 487
Total Revenues / Transfers 618,145 707,950 559,639 576,479 (131,471) 602,840 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 2,500 33,500 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 (37,559) (2,471) (51,828) (2,470) 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 5,693 129,170 Downtown Business District (09) 30,085 30,835 - (30,835) (0) (0) Hospitality Imp. District (10) 1,386 63,886 (0) (63,886) (0) (0) Reiko Koo Estate Donations (93) 2,877 984 1,360 1,847 863 2,333 Available Ending Reserves 182,753$ 232,110$ 145,194$ 142,723$ $ (89,387) 140,253$ 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.

PG FY 25-26 and FY 26-27 Budget 54 PGCC 6-18-25

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 In Thousands
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 55 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 56 PGCC 6-18-25

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
$0.4
$1.5
$1.3
$1.0
2023-24
2024-25
2025-26
2026-27 In Millions
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 57 PGCC 6-18-25

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 $ 51,000 $ 72,215 $ (3,785) $ 79,800 State Grant -
Interest Income 103,711 37,000 68,776 49,519 12,519 49,519 Total Revenues / Transfers 177,927 113,000 119,776 121,734 8,734 129,319 Expenses / Transfers
Salaries and Benefits - - - - - -
Service and Supplies - - - - - -
Transfers Out - - - - - -
Total Expenses / Transfers - - - - - -
Net Change 177,927 113,000 119,776 121,734 8,734 129,319 Available Ending Reserves $ 2,145,254 $ 2,258,254 $ 2,265,030 $ 2,386,765 $ 128,511 $ 2,516,084 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
$120
$122
$129
$-
$-
$-
$-
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses Revenues
$2.15
$2.27
$2.39
$2.52
2023-24
2024-25
2025-26
2026-27 In Millions
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 58 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 59 PGCC 6-18-25

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 funds be used for beautification of the city and for minor improvements to educational 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
PG FY 25-26 and FY 26-27 Budget 60 PGCC 6-18-25

City of Pacific Grove Budget
Employees by Department (General Fund Unless Otherwise Noted) Through Fiscal Year 2026-27
Dept / Funding Source FTEs PT FTEs PT FTEs PT FTEs PT
City Council 7.00 7.00 7.00 7.00
City Manager 4.43 5.18 5.18 5.18
Administrative Services
General Fund 9.52 9.67 9.62 9.62
Cemetery 1.00 1.00 1.00 1.00
Worker's Compensation 0.30 0.35 0.50 0.50
Liability 0.20 0.25 0.15 0.15
Subtotals 11.02 0.00 11.27 0.00 11.27 0.00 11.27 0.00
Community Development 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 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 19.32 2.50 18.67 2.25 18.67 2.25 Cemetery 1.30 0.25 1.30 0.25 1.30 0.25 1.30 0.25
Sewer 5.05 5.30 0.13 6.20 0.13 6.20 0.13
Streets (Gas Tax) 1.35 1.35 1.35 1.35
Subtotals 26.15 1.25 27.27 2.88 27.52 2.63 27.52 2.63
Grand Total All Departments 98.25 10.50 102.12 12.13 102.62 11.88 102.62 11.88 Totals by Fund
General Fund 88.35 8.00 91.87 9.50 91.42 9.25 91.42 9.25 Other Funds 9.90 2.50 10.25 2.63 11.20 2.63 11.20 2.63
Total All Funds 98.25 10.50 102.12 12.13 102.62 11.88 102.62 11.88 * 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
PG FY 25-26 and FY 26-27 Budget 61 PGCC 6-18-25

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
Div. 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
101 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 0.18 121 Total City Manager / HR / 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
130 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 1.00 1.00 Full-time Program Manager 219 0.75 0.75 0.75 0.75
Full-time Management Analyst 208 1.00 1.00 0.60 0.60
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
131 Total Total ASD - Finance - General Fund 6.62 6.62 6.57 6.57 201 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 0.50 204 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 0.50 204 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 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 4.00 301 Total Total Police Department - GF 33.30 33.30 33.30 33.30 PG FY 25-26 and FY 26-27 Budget 62 PGCC 6-18-25

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
Div. 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 Assistant II 122 0.75 0.75 0.75 0.75
Full-time Senior Library Assistant 144 1.00 2.00 2.00 2.00 401 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 1.00 133 Total Total ASD - 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 Senior Program Manager 206 1.00 1.00 1.00
Full-time Program Manager 219 1.00
Full-time Recreation Program Sup 620 0.75 0.75 0.75 0.75 Full-time Superintendent 220 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
421 Total Total Recreation - General Fund 6.65 6.65 6.90 6.90 501 Full-time Construction Project Manager 209 0.10 0.10 0.10 0.10 501 Full-time Program Manager, Senior 206 0.25 0.25 0.25 0.25 501 Full-time Programs Manager 219 0.50 0.50 0.50 0.50
501 Full-time Public Works Director 207 0.30 0.30 0.30 0.30 501 Full-time Superintendent 220 0.40 0.40 0.40 0.40
501 Part-time Administrative Assistant 104 0.13 0.13 0.13 0.13 502 Full-time Equipment Mechanic 156 1.00 1.00 1.00 1.00 502 Full-time Equipment Mechanic, Senior 157 1.00 1.00 1.00 1.00 503 Full-time Construction Project Manager 209 0.20 0.20 0.20 0.20 503 Full-time Maintenance Supervisor 154 0.50 0.50 0.50 0.50 503 Full-time Maintenance Worker 132 8.20 8.20 8.20 8.20 503 Full-time Maintenance Worker Senior 146 0.95 0.95 0.50 0.50 503 Full-time Public Works Director 207 0.10 0.10 0.10 0.10 503 Part-time Administrative Assistant 104 0.24 0.24 0.24 0.24 503 Part-time Custodian 115 0.50 0.50 0.50 0.50
505 Full-time Administrative Analyst 170 0.50 0.50 0.30 0.30 505 Full-time Construction Project Manager 209 0.20 0.20 0.20 0.20 505 Full-time Maintenance Worker 132 3.30 3.30 3.30 3.30 505 Full-time Maintenance Worker Senior 146 0.40 0.40 0.40 0.40 505 Full-time Program Manager, Senior 206 0.25 0.25 0.25 0.25 505 Full-time Public Works Director 207 0.05 0.05 0.05 0.05 513 Full-time Administrative Analyst 170 0.25 0.25 0.25 0.25 513 Full-time Deputy Director/ Civil Engineer 206 0.00 1.00 0.50 0.50 513 Full-time Urban Forester 206 0.00 1.00 1.00 1.00
513 Part-time Administrative Technician 170 0.00 0.00 0.25 0.25 513 Part-time Maintenance Worker 132 0.50 0.50 0.50 0.50 Total Total Public Works - General Fund 19.82 21.82 20.92 20.92 PG FY 25-26 and FY 26-27 Budget 63 PGCC 6-18-25

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
Div. Status Positions Pos. # FTE% FTE% FTE% FTE%
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 219 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
601 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 Superintendent 220 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 0.30 0.50 0.50 Full-time Maintenance Worker Senior 146 0.30 0.30 0.30 0.30 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 0.13 611 Total Total Public Works - Sewer 5.48 5.43 6.33 6.33 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 0.45 508 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
413 Total Total Recreation - Lighthouse 2.25 2.25 2.25 2.25 Full-time Police Officer 516 0.70 0.70 0.70 0.70
304 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
Full-time Management Analyst 208 0.30 0.30
Full-time Administrative Services Director 304 0.05 0.05 0.05 0.05 701 Total Total ASD - Worker's Compensation 0.35 0.35 0.50 0.50 Full-time Program Manager, Senior 206 0.20 0.20
Full-time Management Analyst 208 0.10 0.10
Full-time Administrative Services Director 304 0.05 0.05 0.05 0.05 702 Total Total ASD - Risk Management 0.25 0.25 0.15 0.15 100.67 102.12 102.62 102.62

10.13 12.13 11.88 11.88
110.80 114.25 114.50 114.50
Total Full-Time Employees
Total Part-Time Employees
Grand Totals All Departments
PG FY 25-26 and FY 26-27 Budget 64 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 65 PGCC 6-18-25

PG FY 25-26 and FY 26-27 Budget 66 PGCC 6-18-25

City of Pacific Grove Budget
Department Budgets
Departments Departments
68 Departmental Summary 79 Economic Development
69 Administrative Services - Finance 80 Museum
71 Administrative Services - Technology 81 Fire / Emergency Services 73 City Attorney 83 Library
74 City Council 85 Police
75 City Manager 87 Public Works
77 Community Development 89 Recreation
This section details proposed expenses for each department (with dept nos), including their proposed staffing, achievements, performance measurements and their goals for the next two fiscal years.

Asilomar State Park
PG FY 25-26 and FY 26-27 Budget 67 PGCC 6-18-25

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

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 General Fund 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
PG FY 25-26 and FY 26-27 Budget 68 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 69 PGCC 6-18-25

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 Cemetery (Fund 75) 559,532 720,349 707,011 848,109 127,760 899,192 Insurance (Funds 71-72) 1,115,062 1,452,952 1,606,877 1,799,115 346,163 1,933,068 Total Expenses 3,025,623$ 3,528,632$ 3,709,979$ 4,019,048$ $ 490,416 4,260,305$ 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 - $959,000
Services - $401,000
Supplies / Other - $12,000
23-24 24-25 25-26 26-27
$3.03 $3.71 $4.02 $4.26 Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 70 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 71 PGCC 6-18-25

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$ State Franchise PEG (06) 26,000 81,000 82,000 120,000 39,000 60,000 Total Expenses $ 843,924 $ 1,283,362 $ 1,214,879 $ 1,447,725 $ 164,363 $ 1,430,741 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 - $448,000
Services - $591,000
Supplies / Other - $289,000 23-24 24-25 25-26 26-27
$0.8 $1.1 $1.3 $1.4 Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 72 PGCC 6-18-25

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$ 915,000$ (269,360)$ 915,000$ Total Expenses 1,098,047$ 1,184,360$ 915,000$ 915,000$ (269,360)$ 915,000$ Services 1,098,047$ 1,184,360$ 915,000$ 915,000$ (269,360)$ 915,000$ Total General Fund 1,098,047$ 1,184,360$ 915,000$ 915,000$ (269,360)$ 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
23-24 24-25 25-26 26-27
$1,098
$915 $915 $915 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
PG FY 25-26 and FY 26-27 Budget 73 PGCC 6-18-25

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 96,858 187,775 182,023 153,005 (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 - $93,000
Services - $153,000
Supplies / Other - $30,000 23-24 24-25 25-26 26-27
$179
$293 $276 $340 Thousands
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 74 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 75 PGCC 6-18-25

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 - $892,000
Services - $259,000
Supplies / Other - $4,000
23-24 24-25 25-26 26-27
$1.09 $1.08
$1.15
$1.19 Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 76 PGCC 6-18-25

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 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
PG FY 25-26 and FY 26-27 Budget 77 PGCC 6-18-25

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$ Housing/Com Dev Funds 102,088 317,718 331,467 464,284 146,566 206,852 Total Expenses 2,546,129$ 3,530,876$ 3,481,935$ 2,903,604$ (627,272)$ 2,705,077$ Salaries and Benefits 761,682$ 996,476$ 784,164$ 1,060,033$ 63,557$ 1,112,897$ 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% 76% 60% 75% 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 - $1,060,000
Services - $1,359,000
Supplies / Other - $20,000
23-24 24-25 25-26 26-27
$2.5 $3.5 $2.9 $2.7 Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 78 PGCC 6-18-25

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$ 61,294$ 463,252$ Total Expenses 298,842$ 393,321$ 264,458$ 454,615$ 61,294$ 463,252$ Salaries and Benefits 88,719$ 81,072$ 77,647$ 256,615$ 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$ 61,294$ 463,252$ 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 - $257,000
Services - $198,000
23-24 24-25 25-26 26-27
$299 $264
$455 $463 Thousands
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 79 PGCC 6-18-25

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$ 40,193$ 441,843$ Museum Fund (Fund 08) - 165,800 165,800 - (165,800) -
Total Expenses 346,495$ 550,100$ 549,163$ 424,493$ (125,607)$ 441,843$ Services 346,495$ 384,300$ 383,363$ 424,493$ 40,193$ 441,843$ Supplies / Other Expenses - - - - - -
Total General Fund 346,495$ 384,300$ 383,363$ 424,493$ 40,193$ 441,843$ 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 - $424,000
24-25 24-25 25-26 26-27
$550 $549
$424 $442 Thousands
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 80 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 81 PGCC 6-18-25

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 - $3,677,000
Supplies / Other - $57,000 23-24 24-25 25-26 26-27
$3.3
$3.6
$3.7
$3.9
Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 82 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 83 PGCC 6-18-25

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$ Library Funds (Various) 85,290 100,571 95,571 87,400 (13,171) 70,400 Total Expenses 1,085,374$ 1,198,347$ 1,193,321$ 1,291,059$ $ 1,349,785$ 92,712 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 - $964,000
Services - $180,000
Supplies / Other - $60,000
23-24 24-25 25-26 26-27
$1.1 $1.2 $1.3 $1.3 Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 84 PGCC 6-18-25

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 Department Staffing Organization Chart
Department Head
Managers/Supervisors
Supporting Staff
Police Chief Police Officers
Police Services Technician
Property & Evidence Technician
Police Commanders
Police Sergeants
Administrative Analyst
Community Service Officers
Management Analyst
Parking Enforcement Officer
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
PG FY 25-26 and FY 26-27 Budget 85 PGCC 6-18-25

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$ Police Funds (Various) 729,964 776,297 693,650 842,209 65,912 823,182 Total Expenses 7,266,873$ 8,391,799$ 7,722,769$ 8,658,552$ $ 266,753 9,057,926$ 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 - $6,281,000
Services - $1,399,000
Supplies / Other - $137,000
23-24 24-25 25-26 26-27
$7.3 $7.7 $8.7 $9.1 Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 86 PGCC 6-18-25

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 Program Manager
Senior Program Manager
Maintenance Supervisor
Administrative Analyst
Management Analyst
Equipment Mechanics / Senior
Maintenance Workers / Senior
Department Staffing Organization Chart
Department Head
Public Works Director
Managers/Supervisors
Construction Project Manager
Supporting Staff
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
PG FY 25-26 and FY 26-27 Budget 87 PGCC 6-18-25

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$ Streets (Various) 328,648 1,125,690 1,089,668 519,187 (606,503) 536,452 Sewer (Fund 76) 1,588,358 2,607,998 2,567,669 2,895,269 287,271 2,992,679 Total Expenses 5,971,769$ 9,086,548$ 8,756,133$ 7,830,648$ $ (1,255,900) 8,107,930$ 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. The amount listed for Sewer excludes capital improvements. 57% 35%
8%
Dept Budget - General Fund
Personnel - $2,540,000
Services - $1,537,000
Supplies / Other - $340,000
23-24 24-25 25-26 26-27
$6.0
$8.8 $7.8 $8.1 Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 88 PGCC 6-18-25

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 Senior 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
PG FY 25-26 and FY 26-27 Budget 89 PGCC 6-18-25

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$ Recreation Fund (Various) 110,814 141,500 131,146 187,908 46,408 141,946 Total Expenses 1,256,800$ 1,696,339$ 1,619,781$ 1,980,740$ $ 284,401 1,974,932$ Salaries and Benefits 777,243$ 1,062,307$ 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 1,804 397 1,377 1,763 1,830 Recreation Program Participants 594 414 1,168 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 - $1,286,000
Services - $451,000
Supplies / Other - $56,000 23-24 24-25 25-26 26-27
$1.3 $1.6 $2.0 $2.0 Millions
Dept Expense Trends
PG FY 25-26 and FY 26-27 Budget 90 PGCC 6-18-25

City of Pacific Grove Budget
Capital Program
Capital Background Information Major Capital Projects $100K or more 92 Financial Summary 95 Sewer Master Plan Projects
94 Overview of Capital Program 97 Street Rehabilitation Project 95 Current Year Projects 98 Mandated ADA Improvements
111 Technology / Capital Outlay 101 Chautauqua Hall Improvements 112 CIP Anticipated Accomplishments 102 Chinese Pavillion and Moon Gate 105 Fire Station Alerting System
108 Sewer Main Replacement - Arena Ave.
109 Urban Diversion Station Repair
110 Crack and Slurry Seal
This section provides details on the City’s capital plan for the next two fiscal years, including costs and how they are funded, benefits of each project and how the priority for each project was established. See the City’s separate five year capital plan for details on the City’s capital improvement program.

Berwick Park and Whale Statue
PG FY 25-26 and FY 26-27 Budget 91 PGCC 6-18-25

City of Pacific Grove Budget
Capital Improvement Summary by Project Category
Fiscal Years 2025-26 and 2026-27
Category / Project Code Project
Funding
Sources Prior Years 2025-26 2026-27
Project Totals
(Includes Prior
Years)
CIP26-01 Street Rehabilitation Project CIP 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 350,000 350,000 700,000
Project Totals 1,790,096 1,618,000 3,408,096
CIP26-02 Mandated ADA Improvements CIP Fund 200,000 200,000 Measure X 250,000 250,000
Project Totals 450,000 - 450,000
CIP27-01 Crack and Slurry Seal CIP Fund 200,000 200,000 Measure X 250,000 250,000
Project Totals - 450,000 450,000
Totals $ 2,240,096 $ 2,068,000 $ 4,308,096
CIP 26-03 Library Backup Power System Operating
Donations
$ 80,000 $ 80,000
CIP 26-04 Pillar Privacy / Study Booth ADA Operating
Donations
25,000 25,000
CIP 26-05 Chautauqua Hall
Building Improvements
Operating
Donations
700,000 700,000
CIP 26-06 Chinese Pavillion / Moon Gate Operating
Donations
200,000 200,000
CIP 26-07 Youth Center Roof Repair Recreation
Donations
32,000 32,000
CIP 26-08 City Hall Window and
Door Replacement
Mcindoo
Donation
23,006 23,006
Yount Income 8,994 8,994
Project Totals 32,000 - 32,000
CIP 26-09 Fire Station Alerting System Fire Emergency
Equipment
100,000 100,000
CIP 26-10 Roof Repairs Police Department Operating
Donations
70,000 70,000
CIP 26-11 Point Pinos Grill Boiler
Replacement
Golf 40,000 40,000
Totals $ 1,279,000 $ - $ 1,279,000
CIP 26-12 Sewer Force Main Replacement -
Arena Avenue
Sewer $ 600,000 $ 600,000
CIP 26-13 Urban Diversion Station Repair
and Recalibration
Sewer 100,000 100,000
CIP 24-04 Sewer Collection System Master
Plan (SCSMP) Projects
Sewer 1,800,000 7,000,000 8,800,000
$ 1,800,000 $ 700,000 $ 7,000,000 $ 9,500,000
Transportation
Facilities
Wastewater
Total Transportation
Total Facilities
Total Wastewater
PG FY 25-26 and FY 26-27 Budget 92 PGCC 6-18-25

City of Pacific Grove Budget
Capital Improvement Summary by Project Category
Fiscal Years 2025-26 and 2026-27
CIP 25-10 Recreation Trail Improvements -
Esplanade Park
Yount Income 20,000 $ 16,003 $ 36,003
$ 20,000 $ 16,003 $ - $ 36,003
Category Summary Addresses Council Areas of Focus Prior Years 2025-26 2026-27 Project Totals Infrastructure $ 2,240,096 $ 2,068,000 $ 4,308,096
Infrastructure 1,279,000 - 1,279,000
Infrastructure, Environmental Stewardship 1,800,000 700,000 7,000,000 9,500,000 Infrastructure 20,000 16,003 - 36,003
Total for Two Year Capital Plan $ 1,820,000 $ 4,235,099 $ 9,068,000 $ 15,123,099 Fund Name Prior Years 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 20,000 24,997 - 44,997
RMRA/SB1 - 570,096 400,000 970,096
CIP Fund - 500,000 500,000 1,000,000
Sewer 1,800,000 1,050,000 7,350,000 10,200,000
Golf - 40,000 - 40,000
Mcindoo Donation - 23,006 - 23,006
Total for Two Year Capital Plan $ 1,820,000 $ 4,235,099 $ 9,068,000 $ 15,123,099 Facilities
Wastewater
Parks and Recreation
Parks and Recreation
Totals Parks and Recreation
Transportation
Fund Number
12 17
25 31
92 41
47 63
76 77
19%
25%
13%
12%
25%
CIP By Funding Source Fiscal Year 25-26
Fire Emergency Equipment
Measure X
Recreation Donations
Operating Donations
Yount Income
RMRA/SB1
CIP Fund
Sewer
Golf
Mcindoo Donation
PG FY 25-26 and FY 26-27 Budget 93 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 94 PGCC 6-18-25

Two Year Capital Improvement Plan
Sewer Master Plan (SCSMP) Projects 1, 6 & 9 Category:

Project Code: CIP24-04 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Various Locations Total Estimated Costs: $ 8,800,000 Useful Life: 70 years Annual Depreciation: $ 126,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 76-612-6051 1,800,000 $ $ 7,000,000 $ 8,800,000

Totals 1,800,000 $ -$ 7,000,000 $ -$ 8,800,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Sewer - Sewer Imp. (76)
Project Photos
Bidding / Contract Work in Progress Complete
FY26/27 FY26/27 FY26/27 FY26/27
Project Development
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. As an element of the FY23/24 budget, $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 $7 million. This is a rough estimate and may be updated prior to the start of FY26/27 as an engineers estimate is developed.

PG FY 25-26 and FY 26-27 Budget 95 PGCC 6-18-25

Two Year Capital Improvement Plan
Rec. Trail Improvements - Esplanade Park Category:

Project Code: CIP25-10 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Trail next to Esplanade Park Total Estimated Costs: $ 36,003 Useful Life: 20 years Annual Depreciation: $ 2,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 41-510-6021 20,000 $ $ 16,003 $ 36,003

Totals 20,000 $ $ 16,003 -$ -$ 36,003 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Yount Income - Bldg Imp. (41)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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. In the FY 24-25 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.

PG FY 25-26 and FY 26-27 Budget 96 PGCC 6-18-25

Two Year Capital Improvement Plan
Street Rehabilitation Project Category:

Project Code: CIP 26-01 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Various Road Segments Total Estimated Costs: $ 3,408,096 Useful Life: 25 years Annual Depreciation: $ 136,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 63-631-6041 $ 300,000 $ 300,000 $ 600,000
17-522-6041 570,000 568,000 1,138,000
47-471-6041 570,096 400,000 970,096
76-612-6051 350,000 350,000 700,000
Totals -$ 1,790,096 $ $ 1,618,000 -$ 3,408,096 $
Beacon Street (PCI 0) Del Monte Blvd (PCI 21) 10th Street (PCI 10) Project Development
FY25/26
General Project Information
Project Description / Funding Notes
Funding Information / Estimated Project Timeline
Project Photos
Work in Progress Complete
FY25/26 FY26/27
Bidding / Contract
FY25/26
Fund Name and Number
Transportation
Measure X - Streets (17)
RMRA/SB1 - Streets (47)
Sewer - Sewer Imp. (76)
General Fund CIP - Streets (63)
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). This project helps the City maintain eligibility for ongoing Measure X and SB1/RMRA funding by meeting Maintenance of Effort (MOE) requirements.

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 underground sewer infrastructure will be videoed and addressed as an aspect of this project via the sewer fund.

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
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.

PG FY 25-26 and FY 26-27 Budget 97 PGCC 6-18-25

Two Year Capital Improvement Plan
Mandated ADA Improvements Category:

Project Code: CIP 26-02 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Lovers Point and Prescott Ave. Total Estimated Costs: $ 450,000 Useful Life: 50 years Annual Depreciation: $ 9,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 63-631-6041 $ 200,000 $ 200,000
17-522-6041 250,000 250,000

Totals -$ 450,000 $ -$ -$ 450,000 $
Lovers Point
Work in Progress
General Project Information
Project Description / Funding Notes
Funding Information / Estimated Project Timeline
Fund Name and Number
General Fund CIP - Streets (63)
Prescott Ave
Transportation
Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Photos
Measure X - Streets (17)
Project Development Bidding / Contract
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).

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.

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.

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.

PG FY 25-26 and FY 26-27 Budget 98 PGCC 6-18-25

Two Year Capital Improvement Plan
Library Backup Power System Category:

Project Code: CIP 26-03 Managing Department: Public Works & Library Annual Operating Impact: None Council Focus Area: Infrastructure Location: Pacific Grove Public Library Total Estimated Costs: $ 80,000 Useful Life: 15 years Annual Depreciation: $ 5,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 31-516-6021 $ 80,000 $ 80,000

Totals -$ 80,000 $ -$ -$ 80,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Operating Donations - Bldg Imp. (31)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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. The Pacific Grove Library Friends and Foundation have dedicated $80,000 to fund this project.

PG FY 25-26 and FY 26-27 Budget 99 PGCC 6-18-25

Two Year Capital Improvement Plan
Library Pillar Privacy / Study Booth ADA Category:

Project Code: CIP 26-04 Managing Department: Public Works & Library Annual Operating Impact: None Council Focus Area: Infrastructure Location: Pacific Grove Public Library Total Estimated Costs: $ 25,000 Useful Life: 15 years Annual Depreciation: $ 2,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 31-516-6021 $ 25,000 $ 25,000

Totals -$ 25,000 $ -$ -$ 25,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Operating Donations - Bldg Imp. (31)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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. The Pacific Grove Library Friends and Foundation have dedicated $25,000 to fund this project.

PG FY 25-26 and FY 26-27 Budget 100 PGCC 6-18-25

Two Year Capital Improvement Plan
Chautauqua Hall Building Improvements Category:

Project Code: CIP 26-05 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Chautauqua Hall Total Estimated Costs: $ 700,000 Useful Life: 25 years Annual Depreciation: $ 28,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 31-516-6021 $ 700,000 $ 700,000

Totals -$ 700,000 $ -$ -$ 700,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Operating Donations - Bldg Imp. (31)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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. The Heritage Society's Friend of Chautauqua Hall have raised $700,000 of community donations to facilitate this project.

PG FY 25-26 and FY 26-27 Budget 101 PGCC 6-18-25

Two Year Capital Improvement Plan
Chinese Pavillion and Moon Gate Category:

Project Code: CIP 26-06 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: El Marie Dyke Park Total Estimated Costs: $ 200,000 Useful Life: 25 years Annual Depreciation: $ 8,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 31-516-6021 $ 200,000 $ 200,000

Totals -$ 200,000 $ -$ -$ 200,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Operating Donations - Bldg Imp. (31)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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.

PG FY 25-26 and FY 26-27 Budget 102 PGCC 6-18-25

Two Year Capital Improvement Plan
Youth Center Roof Repair Category:

Project Code: CIP26-07 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Youth Center Total Estimated Costs: $ 32,000
Useful Life: 30 years Annual Depreciation: $ 1,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 25-422-6021 $ 32,000 $ 32,000

Totals -$ 32,000 $ -$ -$ 32,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Recreation Donations - Bldg Imp. (25)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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.

PG FY 25-26 and FY 26-27 Budget 103 PGCC 6-18-25

Two Year Capital Improvement Plan
City Hall Window and Door Replacement Category:

Project Code: CIP26-08 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: City Hall Total Estimated Costs: $ 32,000
Useful Life: 30 years Annual Depreciation: $ 1,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 92-519-6021 $ 23,006 $ 23,006
41-510-6021 8,994 8,994

Totals -$ 32,000 $ -$ -$ 32,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
McIndoo Donation- Bldg Imp (92)
Yount Income - Bldg Imp. (41)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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.

PG FY 25-26 and FY 26-27 Budget 104 PGCC 6-18-25

Two Year Capital Improvement Plan
Fire Station Alerting System Category:

Project Code: CIP26-09 Managing Department: Public Works / Fire Depts Annual Operating Impact: None Council Focus Area: Infrastructure Location: Pacific Grove Fire Station Total Estimated Costs: $ 100,000 Useful Life: 15 years Annual Depreciation: $ 7,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 12-353-6022 $ 100,000 $ 100,000

Totals -$ 100,000 $ -$ -$ 100,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Fire Equipment - Fire Bldg (12)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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.

PG FY 25-26 and FY 26-27 Budget 105 PGCC 6-18-25

Two Year Capital Improvement Plan
Police Building Roof Repairs Category:

Project Code: CIP26-10 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Police Station Total Estimated Costs: $ 70,000 Useful Life: 30 years Annual Depreciation: $ 2,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 31-516-6021 $ 70,000 $ 70,000

Totals -$ 70,000 $ -$ -$ 70,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Operating Donations - Bldg Imp. (31)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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.

PG FY 25-26 and FY 26-27 Budget 106 PGCC 6-18-25

Two Year Capital Improvement Plan
Point Pinos Grill Boiler replacement Category:

Project Code: CIP26-11 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Golf Course Restaurant Total Estimated Costs: $ 40,000 Useful Life: 15 years Annual Depreciation: $ 3,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 77-622-6021 $ 40,000 $ 40,000

Totals -$ 40,000 $ -$ -$ 40,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Golf - Bldg Imp. (77)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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.

PG FY 25-26 and FY 26-27 Budget 107 PGCC 6-18-25

Two Year Capital Improvement Plan
Sewer Main Replacement - Arena Avenue Category:

Project Code: CIP26-12 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Arena Avenue Total Estimated Costs: $ 600,000 Useful Life: 70 years Annual Depreciation: $ 9,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 76-612-6051 $ 600,000 $ 600,000

Totals -$ 600,000 $ -$ -$ 600,000 $
Funding Information / Estimated Project Timeline
Wastewater
General Project Information
Project Description / Funding Notes
Fund Name and Number
Sewer - Sewer Imp. (76)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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.

PG FY 25-26 and FY 26-27 Budget 108 PGCC 6-18-25

Two Year Capital Improvement Plan
Urban Diversion Station Repair/Recalibration Category:

Project Code: CIP26-13 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Various Locations Total Estimated Costs: $ 100,000 Useful Life: 10 years Annual Depreciation: $ 10,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 76-612-6051 $ 100,000 $ 100,000

Totals -$ 100,000 $ -$ -$ 100,000 $
Funding Information / Estimated Project Timeline
Facilities
General Project Information
Project Description / Funding Notes
Fund Name and Number
Sewer - Sewer Imp. (76)
Project Photos
Bidding / Contract Work in Progress Complete
FY25/26 FY25/26 FY25/26 FY25/26
Project Development
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.

PG FY 25-26 and FY 26-27 Budget 109 PGCC 6-18-25

Two Year Capital Improvement Plan
Crack and Slurry Seal Category:

Project Code: CIP 27-01 Managing Department: Public Works Annual Operating Impact: None Council Focus Area: Infrastructure Location: Various Road Segments Total Estimated Costs: $ 450,000 Useful Life: 10 years Annual Depreciation: $ 45,000
Account Prior Years FY 25-26 FY 26-27 Future Years Totals 63-631-6041 $ 200,000 $ 200,000
17-522-6041 250,000 250,000

Totals -$ -$ 450,000 $ -$ 450,000 $
Fund Name and Number
General Project Information
Project Description / Funding Notes
Funding Information / Estimated Project Timeline
Project Photos
Transportation
Work in Progress Complete
FY26/27 FY26/27 FY26/27 FY26/27
General Fund CIP - Streets (63)
Measure X - Streets (17)
Project Development Bidding / Contract
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 in- field observations.

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.

PG FY 25-26 and FY 26-27 Budget 110 PGCC 6-18-25

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 $ 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
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 - CIP Fund $ 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.

PG FY 25-26 and FY 26-27 Budget 111 PGCC 6-18-25

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 $ 7,653,737
PG FY 25-26 and FY 26-27 Budget 112 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 113 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 114 PGCC 6-18-25

City of Pacific Grove Budget
Ten Years Trends / City Comparisons
Financial Analysis and Trends Other Trend Information
116 Agency Financial Comparison 122 Debt Capacity
117 Fund Balances of Governmental Funds 124 Operating Indicators by Function 119 Revenue Capacity 125 Demographic Information
121 Assessed Value of Taxable Property 126 City Employees By Department This section presents detailed trend information as a context for understanding what the information in the forecast and transmittal letter about the City's overall financial health, and how it compares with its comparable agencies on a financial basis. Unless noted, the information in these schedules is derived from the most recent annual comprehensive financial reports.

Lovers Point
PG FY 25-26 and FY 26-27 Budget 115 PGCC 6-18-25

City of Pacific Grove Budget
Statistical Comparisons of Selected Agencies
Fiscal Year 2023-24
PG Carmel Marina Monterey Seaside Average
Population 14,966 3,122 22,695 27,106 30,197 20,780
Employees 105 80 122 445 178 206
General Fund Revenues
Total Revenues 33,249,760 27,133,782 40,176,982 104,803,040 47,246,550 54,840,089 Revenues Per Capita 2,222 8,691 1,770 3,866 1,565 3,973 Tax Revenues 27,336,521 22,780,525 29,695,777 68,866,026 41,981,559 40,830,972 % of Total Revenues 82% 84% 74% 66% 89% 74%
General Fund Expenses 29,471,820 25,740,423 31,346,759 95,573,719 44,583,722 49,311,156 Public Safety 12,359,031 9,057,317 13,351,348 50,787,551 26,542,882 24,934,775 Development 3,318,117 2,979,672 3,911,380 6,524,266 2,562,000 3,994,330 Public Works / Transportation 4,399,770 5,192,057 200,958 7,976,095 4,572,734 4,485,461 Recreation / Library / Museum 2,700,224 1,351,865 1,250,619 17,016,146 5,385,795 6,251,106 Debt Service 1,506,652 83,724 429,503 49,695 496,936 264,965 Admin / Other 5,188,026 7,075,788 12,202,951 13,219,966 5,023,375 9,380,520 Long-Term Liabilities 70,561,807 37,530,029 95,032,923 258,585,431 94,719,094 121,466,869 Pension Liability 55,021,695 29,203,964 29,593,077 189,284,049 64,121,663 78,050,688 % of Gross Liability Funded 76% 68% 76% 71% 76% 73%
Claims / Other Debt 5,439,950 4,567,703 24,690,163 47,322,980 16,714,178 23,323,756 Other Business Type Debt 6,045,056 35,950,000 9,913,651 2,669,391 16,177,681 OPEB Liability - LT Portion 3,035,380 3,073,519 3,556,826 8,261,538 9,758,653 6,162,634 Compensated Absences 1,019,725 684,842 1,242,856 3,803,212 1,455,208 1,796,530 General Fund Reserves 17,581,788 20,306,904 47,193,974 60,077,454 30,993,165 39,642,874 Operating Reserves 17,581,788 16,427,787 32,797,005 33,193,926 26,992,355 27,352,768 Pension/OPEB/Leave Liability 3,124,794 7,400,000 8,218,769 4,000,810 5,686,093 Capital Projects and Outlay 6,996,969 18,664,759 12,830,864 Reserves % of Expenses 60% 64% 105% 35% 61% 66%
Note: The cities chosen were based on them being of similar size and closeness in location to Pacific Grove. $2,222
$8,691
$1,770
$3,866
$1,565
$3,973
PG
Carmel
Marina
Monterey
Seaside
Average
General Fund Revenue Per Capita
60%
64%
105%
35%
61%
66%
PG
Carmel
Marina
Monterey
Seaside
Average
General Fund Operating Reserves
% of
General
Fund
Expenses
PG FY 25-26 and FY 26-27 Budget 116 PGCC 6-18-25

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
$11.6 $11.5 $10.0
$15.0
$17.6
2015 2017 2019 2021 2023 2024
Available General Fund Reserves (In Millions)
PG FY 25-26 and FY 26-27 Budget 117 PGCC 6-18-25

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 $6.4
$9.2
$7.6
$10.0 $10.4
2015 2017 2019 2021 2023 2024
Designated Reserves Other Govt Funds (In Millions)
PG FY 25-26 and FY 26-27 Budget 118 PGCC 6-18-25

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
$19.6
$22.6
$21.0
$27.5
$29.1
2015
2017
2019
2021
2023
2024
General Governmental Tax Revenue by Year (In Millions)
PG FY 25-26 and FY 26-27 Budget 119 PGCC 6-18-25

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 17,358,914 229,671 481,304 127,740 1,367,494 355,293 20,814,062 893,646 2017 18,805,809 111,092 576,779 110,665 1,545,556 265,903 21,977,796 561,992 2018 19,754,218 87,478 521,403 282,841 1,643,238 259,883 22,919,219 370,158 2019 21,018,950 92,206 547,193 169,534 1,585,098 553,032 24,364,830 398,817 2020 19,741,066 171,317 576,735 179,797 1,456,261 523,280 23,356,876 708,420 2021 19,679,908 116,159 873,727 36,984 1,538,638 213,705 23,368,297 909,176 2022 23,412,682 150,517 913,160 37,397 1,877,203 (1,805) 1,215,986 27,605,140 2023 25,799,639 146,946 1,083,985 460,058 1,678,855 390,656 1,949,182 31,509,321 2024 27,336,521 278,308 1,322,285 314,242 1,737,498 1,125,585 1,135,321 33,249,760 Source: City of Pacific Grove Finance Department
e $19.2
$22.0
$24.4
$23.4
$31.5
$33.2
2015
2017
2019
2021
2023
2024
General Fund Revenue by Year (In Millions)
PG FY 25-26 and FY 26-27 Budget 120 PGCC 6-18-25

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 2020
2021
2022
2023
2024
Fiscal Year
Ended Real Property
June 30
$2.7
$3.0
$3.4
$3.8
$4.4
$4.7
2015 2017 2019 2021 2023 2024
Total Assessed Value of Real Property (In Billions)
PG FY 25-26 and FY 26-27 Budget 121 PGCC 6-18-25

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, 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 income $ 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% Population 15,394 15,352 15,498 15,660 15,883
Debt per capita 1,432 1,420 1,670 1,504 1,396
Assessed value 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% Sources:

US Department of Commerce HdL Companies
California Department of Finance City of Pacific Grove Finance Department Fiscal Year Ended June 30
$17.4 $15.7 $13.5
$10.8
$7.4 $6.5
2015 2017 2019 2021 2023 2024
Pension Obligation Bonds Outstanding (In Millions)
PG FY 25-26 and FY 26-27 Budget 122 PGCC 6-18-25

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, 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 income $ 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% Population 15,265 15,536 14,761 14,741 14,966
Debt per capita 1,341 1,198 1,123 996 880
Assessed value 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% Fiscal Year Ended June 30
$4.6
$10.2 $8.7 $7.8 $7.3 $6.7
2015 2017 2019 2021 2023 2024
Other Outstanding Debt - Excluding Pensions (In Millions) PG FY 25-26 and FY 26-27 Budget 123 PGCC 6-18-25

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 15,359 18,032 20,350 18,902 15,875 19,266 12,284 13,214 Fire
Calls for service 1,584 1,764 1,604 1,694 1,877 1,740 1,772 2,033 2,257 1,948 Inspections 177 182 484 703 1,006 197 62 201 109 668
Recreation
Park reservations 318 328 348 299 273 645 90 2,166 878 1,502 Special events 14 16 18 18 18 24 - 3 21 26
Recreation registrations N/A N/A N/A N/A N/A 667 414 1,168 1,653 2,009 Public Works
Potholes patched 121 100 108 58 108 75 N/A 100 116 103
Work orders completed 1,406 1,594 1,620 1,630 1,606 1,216 1,198 1,681 1,579 1,803 Tree Permits Issued 96 329 354 360 508 434 363 276 295 218 Library (in thousands)
Circulation of materials 283 291 289 288 328 188 84 180 223 283 Reference questions 25 29 26 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:

Due to COVID-19 restrictions, some indicators for 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 1,630
1,216
1,681 1,803
2015 2016 2018 2020 2022 2024
Work Orders Completed
PG FY 25-26 and FY 26-27 Budget 124 PGCC 6-18-25

City of Pacific Grove
Demographic and Economic Statistics
Last Ten Fiscal Years
City Total Personal Per Capita % of Population % of Population Unemployment Income Personal Median 25+ with High 25+ with Population Rate (In thousands) Income Age School Diploma Bachelor's Degree 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%
Sources:

California Department of Finance and HdL Companies
California Employment Development Department
U.S. Department of Commerce, Bureau of Economic Analysis California Board of Equalization
Fiscal Year
Ended
June 30

5.7%

4.7% 4.6%

8.6%

5.9%

7.0%
2015 2017 2019 2021 2023 2024
City Unemployment Rate
PG FY 25-26 and FY 26-27 Budget 125 PGCC 6-18-25

City of Pacific Grove
Number of City Employees by Department
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Departments:

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

Cemetery 2 1 1 2 2 2 2 2 2 3
Sewer 6 4 5 5 5 5 5 5 5 5
Total 110 107 110 112 116 115 95 99 102 105
Analysis/Notes:

Reflects the authorized full-time positions in each budget year.

Includes Council Members and Mayor.

Source: City of Pacific Grove Budget Document
Note that the City Attorney, Museum and Golf Course are operated on a contract basis without City For Fiscal Year Ended June 30
110
110
116
95 102
105
2015
2017
2019
2021
2023
2024
Total Number of City Employees (Full-Time)
PG FY 25-26 and FY 26-27 Budget 126 PGCC 6-18-25

City of Pacific Grove Budget
Financial Policies
Policy Policy
128 Financial Policy Summaries 139 Basis of Accounting and Budgeting 129 Fee and Cost Recovery 140 Fund Reserve Policies
131 Investments 141 Fixed Asset Policies
137 Budget and Financial Management 142 Debt Management 137 Budget Process 144 Council Goals
138 Cost Allocation
This section includes the City's key financial policies and the calendar related to the development of the budget. All of the financial policies of the City are on its website at https://www.cityofpacificgrove.gov under the Finance subsection of the Administrative Services section of the website.

Perkins Park
PG FY 25-26 and FY 26-27 Budget 127 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 128 PGCC 6-18-25

City Of Pacific Grove
City Council Policy – Fees, Charges and Cost Recovery
Policy Governing Policy No. Effective Date Page No.

Fees, Charges and Cost Recovery 400-4 June 15, 2011 1 of 2 I. 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.

II. 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 the 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.

PG FY 25-26 and FY 26-27 Budget 129 PGCC 6-18-25

III. 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)
PG FY 25-26 and FY 26-27 Budget 130 PGCC 6-18-25

City Of Pacific Grove
City Council Policy - Investments
Policy Governing Policy No. Effective Date Page No.

Investments 400-5 June 4, 2025 1 of 5
I. 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).

II. 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 III. 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.

PG FY 25-26 and FY 26-27 Budget 131 PGCC 6-18-25

IV. 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:

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

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.

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.

V. 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.

VI. 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.

VII. 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 should 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:

PG FY 25-26 and FY 26-27 Budget 132 PGCC 6-18-25

VII. Internal Controls (Continued)
 Wire Approvals: Dual approval of investment wire transfers from the City  Separation of Duties: Separation of transaction authority from accounting and recordkeeping  Safekeeping: Custodial safekeeping
 Delegation: Clear delegation of authority to subordinate staff members  Documentation: Support confirming each investment transaction  Approval Levels: Establishment of wire authorization approval levels for staff  Reconciliations: Regular Review of investment transactions and statements to the City’s general ledger  Audit: Independent review by the external auditor as part of the City’s annual audit VIII. Diversification
Investments shall be diversified among institutions, types of securities, and maturities to maximize safety and yield with changing market conditions.

IX. 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.

X. Interest Allocation
Except for cash 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.

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

Investment in these instruments shall not have a term exceeding five years from the date of purchase.

A. 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 opinion, are of high quality.

B. 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.

C. 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.

PG FY 25-26 and FY 26-27 Budget 133 PGCC 6-18-25

XI. Permitted Investment Instruments (Continued)
D. 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.

E. 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).

F. CLASS and Cal Trust 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.

G. 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:
i. 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.
ii. 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.

H. 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.

I. 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.

PG FY 25-26 and FY 26-27 Budget 134 PGCC 6-18-25

XII. 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:
 Eligible Securities: Description of eligible investment securities, and a written statement of policy  Interest Allocation: Description of interest calculations and how gains and losses are distributed  Safeguarding of Securities: Description of how the securities are safeguarded  Audit: Copy of the most recent independent audit report  Authorizations: Description of who may invest in the program  Statements: Schedule for receiving statements and portfolio listings  Fees: Information on how and when fees are assessed
 Bond Proceeds: Acceptance or eligibility to receive bond proceeds XIII. Investment Reports
Reports shall be submitted to the City Council quarterly and include the following data:
 Name of financial Institution for individual investments  Totals by investment category
 Book and market values and interest yields
 Compliance with investment policy
 Maturity dates on individual investments
 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.

XIV. 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
PG FY 25-26 and FY 26-27 Budget 135 PGCC 6-18-25

City of Pacific Grove
Council Policy - Budget and Financial Management
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.

PG FY 25-26 and FY 26-27 Budget 136 PGCC 6-18-25

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
Budget AdopƟon: 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.

Revenue ConƟngencies: General Fund revenue projecƟons for a year may include a negaƟve conƟngency reserve of up to 2% of total revenues, depending on the direcƟon of the economy. The need for such a conƟngency can be reevaluated aŌer January 1st of the budget year.

Expense ConƟngencies: 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.

Balanced Budget: 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.

Maintenance: The budget should provide for maintenance and Ɵmely replacement of fixed assets and equipment working within the fiscal constraints of the City.

ReporƟng: AŌer the end of the fiscal year, staff shall present a report to the Council esƟmaƟng the yearend 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.

Budget Control: AppropriaƟons are approved at the fund level. All budget amendments where the net impact of the change increases the overall budget of a fund must be approved by the City Council.

Departments: 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) • Museum
AdministraƟve Services / Risk Mgmt • 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.

PG FY 25-26 and FY 26-27 Budget 137 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 138 PGCC 6-18-25

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 PG FY 25-26 and FY 26-27 Budget 139 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 140 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 141 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 142 PGCC 6-18-25

City Of Pacific Grove
City Council Policy – Council Goals
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. The council’s goals should be reviewed by the 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. The City Manager is responsible for providing direction to City staff to determine the implementation process.

7. The 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
PG FY 25-26 and FY 26-27 Budget 143 PGCC 6-18-25

PG FY 25-26 and FY 26-27 Budget 144 PGCC 6-18-25

City of Pacific Grove Budget
Appendix
Section Section
146 Budget Calendar 153 Acronyms
147 Long-Term Debt ObligaƟons 154 Glossary
150 Budget Ordinance 156 Index
151 Gann Limit and ResoluƟon
This section provides further information on the City, including an explanation (with related website links) of key terms used in the document as part of the glossary and of the acronyms of associated entities. The section also contains the resolution adopted by the Board as part of the approval of the budget, information on debt obligations, including maturity schedules, and an index of sections of the budget document.

PG FY 25-26 and FY 26-27 Budget 145 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 146 PGCC 6-18-25

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.

PG FY 25-26 and FY 26-27 Budget 147 PGCC 6-18-25

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 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
PG FY 25-26 and FY 26-27 Budget 148 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 149 PGCC 6-18-25

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:

PG FY 25-26 and FY 26-27 Budget 150 PGCC 6-18-25

City of Pacific Grove Budget
Appropriations Limit
Fiscal Year 2025-26
County City California Budgeted % %
Fiscal Beginning Population Population Per Capita Tax of Limit Year 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% 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. 2020 2021 2022 2023 2024 2025 2026
$39 $40 $43 $46 $48 $50 $53
$20
$17 $19 $23 $24 $26 $28 In Millions
City Appropriation Appropriations Limit Analysis
Appropriations Limit Budgeted Tax Revenues
PG FY 25-26 and FY 26-27 Budget 151 PGCC 6-18-25

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:

PG FY 25-26 and FY 26-27 Budget 152 PGCC 6-18-25

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) PG FY 25-26 and FY 26-27 Budget 153 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 154 PGCC 6-18-25

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
PG FY 25-26 and FY 26-27 Budget 155 PGCC 6-18-25

City of Pacific Grove Budget
Index
Funds Departments
32 Fund Type Descriptions 68 Departmental Summary
35 Fund Summaries by Fiscal Year 69 Admin Services-Finance 38 Fund Detail Sheets 71 Admin Services-Information Services 57 Capital Project Fund 73 City Attorney
42 Cemetery 74 City Council
38 General Fund 75 City Manager
10 General Fund 5 Year Forecast 77 Community Development 43 Golf 79 Economic Development
39 Internal Service Funds 80 Museum
44 Local Water Project 81 Fire and Emergency Services
58 Permanent Funds 83 Library
33 Revenues/Expenses by Fund 85 Police
45 Sewer 87 Public Works
46 Special Revenue Funds 89 Recreation
Capital Program / Debt Obligations Trend Information
11 CIP Overview 119 Assessed Value of Taxable Property
94 Capital Program Development 124 City Employees By Department 112 CIP Accomplishments 121 Debt Capacity
92 Financial Summary 122 Demographic Information
111 Technology / Capital Outlay 126 Fund Balances of Governmental Funds 12 Debt and Pension Overview 125 Operating Indicators by Function 147 Long-Term Debt Obligations 117 Revenue Capacity
Policies Supplementary Information
128 Financial Policy Summaries 20 Accomplishments / Goals 139 Basis of Accounting/Budgeting 153 Acronyms / Glossary 137 Budget and Financial Mgmt 146 Budget Calendar
137 Budget Process 150 Budget Ordinance
138 Cost Allocation 6 Economic Factors and Analysis
144 Council Goals 25 Focus Areas / Strategic Goals
142 Debt Management 151 Gann Limit and Resolution
129 Fee and Cost Recovery 27 Map of Service Area
141 Fixed Asset Policies 24 Mission and Vision
140 Fund Reserve Policies 30 Organizational Chart
131 Investments 18 Profile / Strategic Goals / History
Staffing
9 Staffing Overview
65 Employee Compensation
61 Staff Positions
Pacific Grove
Bed & Breakfasts
Seven Gables
Pacific Grove Inn
Green Gables
Gosby House
Martine Inn
Centrella Hotel
Old St. Angela
PG FY 25-26 and FY 26-27 Budget 156 PGCC 6-18-25

Agenda No. 7 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 18, 2025
SUBJECT: Second Reading of an Ordinance 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
Hold second reading and adopt an Ordinance Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission.

DISCUSSION
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 June 12, 2025.

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 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
PGCC 6-18-25

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.

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
PGCC 6-18-25

Chapter 3.40 Economic Development Commission
PGCC 6-18-25

ORDINANCE NO. 25-____

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE REPEALING CHAPTER 3.40 OF THE PACIFIC GROVE MUNICIPAL CODE ON

ECONOMIC DEVELOPMENT COMMISSION
FACTS

1. Chapter 3.40 of the Pacific Grove Municipal Code “Economic Development Commission”(EDC) includes several Sections regarding the EDC include creation, membership qualifications, terms, removal, selection of chairperson, time and place of meetings and powers and duties, Sections 3.40.010 through 3.40.070.

2. 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.

3. At the December 18, 2024 City Council meeting, 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

4. A City staff member has been appointed with duties to include serving as a 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.

5. 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.

6. Due to a City staff member now being ready to undertake the EDC duties and the EDC having difficulties meeting to begin its business this year, continuing the EDC is no longer efficient or effective and it is now time to sunset the Commission.

7. 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.

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

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

PGCC 6-18-25

SECTION 2. Pacific Grove Municipal Code Chapter 3.40 Economic Development Commission is hereby repealed in their entirety.

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. 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 5. In accord with Article 15 of the City Charter, this Ordinance shall become effective on the thirtieth (30th) day following its passage and adoption.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this ______ day of ______________, ______, by the following vote:

AYES:

NOES:

ABSENT:

APPROVED:
_________________________________
NICK SMITH, Mayor
ATTEST:

DATED:________________
_______________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_______________________________
BRIAN A. PIERIK, City Attorney
PGCC 6-18-25

Chapter 3.40

ECONOMIC DEVELOPMENT COMMISSION
Sections:

3.40.010 Creation – Membership.

3.40.020 Member qualifications.

3.40.030 Terms designated.

3.40.040 Removal of members.

3.40.050 Selection of chairperson.

3.40.060 Time and place of meetings.

3.40.070 Powers and duties.

3.40.010 Creation – Membership.

An economic development commission for the city of Pacific Grove is created. The commission shall consist of seven voting members appointed by the mayor and approved by the council. In addition, the president of the Pacific Grove Chamber of Commerce shall serve as an ex officio, nonvoting member. [Ord. 19-005 § 2, 2019; Ord. 14-020 § 2, 2014; Ord. 10-005 § 5, 2010].

3.40.020 Member qualifications.

Voting members of the commission shall be persons selected for their business knowledge and interest in economic development issues. Four members shall be owners or managers of businesses or commercial property located in a commercial business district in Pacific Grove. The three other members shall be residents registered to vote in the city of Pacific Grove. [Ord. 19-005 § 2, 2019; Ord. 14-020 § 2, 2014; Ord. 10-005 § 5, 2010].

3.40.030 Terms designated.

All appointees shall serve for a two-year term. Three of the commission members shall be appointed for terms ending on January 31st in even-numbered years, and four members for terms ending on January 31st in odd-numbered years. [Ord. 19-005 § 2, 2019; Ord. 14-020 § 2, 2014; Ord. 10-005 § 5, 2010].

3.40.040 Removal of members.
5/27/25, 8:51 PM Chapter 3.40 ECONOMIC DEVELOPMENT COMMISSION https://www.codepublishing.com/CA/PacificGrove/#!/PacificGrove03/PacificGrove0340.html#3.40 1/3 PGCC 6-18-25

Any member may be removed from the commission prior to the expiration of his or her term by the majority vote of the council, in the council’s discretion. Any member who absents himself or herself from two consecutive regular meetings, without cause or approval by the commission, shall be automatically removed. [Ord. 14-020 § 2, 2014; Ord. 10-005 § 5, 2010].

3.40.050 Selection of chairperson.

The voting members of the commission shall select one of their members to be chairperson for a oneyear term, the chairperson to be selected and the term to commence at the first meeting in February. [Ord. 14-020 § 2, 2014; Ord. 10-005 § 5, 2010].

3.40.060 Time and place of meetings.

All meetings of the commission shall be open to the public, and the commission shall meet no less frequently than once a month and shall establish its own rules for the frequency, time and place of meetings, and to govern its procedures. Notice of meetings shall be given in accord with the Ralph M.

Brown Act. [Ord. 14-020 § 2, 2014; Ord. 10-005 § 5, 2010].

3.40.070 Powers and duties.

The economic development commission shall have the following powers and duties:
(a) Devise and recommend economic development and enhancement strategies and programs to the city manager and council; and
(b) Assist the city’s businesses and job seekers in their efforts; and (c) Help meet the shopping and service needs of local residents by promoting retail business interests; and
(d) 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
(e) Perform other duties and functions as set out in this chapter or as may be required from time to time by specific direction of the council. [Ord. 14-020 § 2, 2014; Ord. 10-005 § 5, 2010].

The Pacific Grove Municipal Code is current through Ordinance 25-005, passed April 2, 2025.

Disclaimer: The City Clerk’s office has the official version of the Pacific Grove Municipal Code. Users should contact the City Clerk’s office for ordinances passed subsequent to the ordinance cited above. 5/27/25, 8:51 PM Chapter 3.40 ECONOMIC DEVELOPMENT COMMISSION https://www.codepublishing.com/CA/PacificGrove/#!/PacificGrove03/PacificGrove0340.html#3.40 2/3 PGCC 6-18-25

City Website: https://www.cityofpacificgrove.org/
City Telephone: (831) 648-3100
Codification services provided by General Code
5/27/25, 8:51 PM Chapter 3.40 ECONOMIC DEVELOPMENT COMMISSION https://www.codepublishing.com/CA/PacificGrove/#!/PacificGrove03/PacificGrove0340.html#3.40 3/3 PGCC 6-18-25

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: Nicholas Cina, Finance Management Analyst
MEETING DATE: June 18, 2025
SUBJECT: Check Register and Core Fund Summary - May 2025 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION

1. Receive the Check Register and Core Fund Summary.

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

DISCUSSION
The check register is an account of monthly expenditures. It provides budgetary insight and promotes transparency. The check register is produced from the City’s financial system. The report groups the checks by the respective city fund. Attached is the check register report for May 2025. In addition, a detailed listing of the checks issued for the month is available on the City's website.

The Administrative Services Department produces Monthly Core Financial reports to assist in evaluating the City's fiscal condition. The attached report provides details on General Fund revenues as well as a summary related to its other funds.

OPTIONS
N/A - This is informational only.

FINANCIAL IMPACT:

There is no fiscal impact. This is informational only.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
Core Fund Summary and GF Revenue
Check Register (By Fund) - May 2025
Check Register (Detailed) - May 2025
PGCC 6-18-25

Revenues by Fund - FY 2024-25 (Unaudited)
Through May 2025
Fund Revised Budget YTD
YTD % of
Budget Prior YTD
Projected
Change for
Fiscal Year
Projected
Ending
Reserves *
Main Fund - Fund 01 $ 33,288,027 $ 29,324,007 88% 29,011,808 $ $ (2,316,319) $ 15,079,871 Other Funds Included 24,700 36,514 >100% 27,427 (1,493) 184,105 General Fund 33,312,727 29,360,521 88% 29,039,235 (2,317,812) 15,263,976 Capital Projects $ 917,500 $ 651,140 71% $ 679,466 (1,019,533) (659,337) Capital Funds 917,500 651,140 71% 679,466 (1,019,533) (659,337) Local Water Project 1,310,187 1,331,701 >100% 996,372 299,262 76,696 Cemetery 653,000 592,048 91% 768,173 (67,349) 1,018,896 Sewer 4,248,000 3,588,735 84% 2,789,109 (1,784,635) 6,809,583 Golf 762,000 907,286 >100% 756,337 6,943 874,537
Sewer Lateral Loans 4,000 14,477 >100% 5,894 4,000 170,928 Enterprise Funds 6,977,187 6,434,247 92% 5,315,885 (1,541,779) 8,950,640 Employee Benefit 265,000 226,750 86% 287,279 (67,000) 92,520 Worker's Compensation 722,113 586,101 81% 643,520 (13,836) 584,944 Liability Insurance 752,000 585,530 78% 824,445 34,997 627,716 Internal Service Funds 1,739,113 1,398,381 80% 1,755,244 (45,839) 1,305,180 Library 22,000 48,851 >100% 35,166 22,000 587,637
Cemetery 113,000 200,738 >100% 151,111 113,000 2,258,254 Yount 8,000 33,673 >100% 29,570 - 781,371
Trust Funds 143,000 283,262 100% 215,847 135,000 3,627,262 Library / Poetry 97,283 130,695 >100% 98,239 (3,288) 256,963 Museum 4,000 21,724 >100% 12,175 (161,800) 183,023
Public Safety 800,225 590,333 74% 598,386 (22,152) 335,912 Housing 31,000 79,967 >100% 93,626 (266,718) 780,386
Streets 1,596,839 1,499,300 94% 1,330,136 (2,177,002) (583,097) Lighthouse 90,000 114,014 >100% 124,154 (109,450) 114,520 Community Development/CDBG 21,200 56,388 >100% 52,982 1,200 1,454,089 ARPA 15,000 31,067 >100% 37,957 (813,872) 81,297
Downtown/Hospitality Districts 695,650 457,780 66% 515,158 63,250 94,721 Cable Franchise / Other 97,650 178,521 >100% 569,028 (48,350) 261,726 Other Funds 3,448,847 3,159,789 92% 3,431,841 (3,538,182) 2,979,540 Totals All Funds $ 46,538,374 $ 41,287,340 89% $ 40,437,518 $ (8,328,145) $ 31,467,261 * Excludes Proposed Adjustments and Rollovers
Revenues Working Capital
88%
71%
92%
80%
100%
92%
89%
General Fund
Capital Funds
Enterprise Funds
Internal Service Funds
Trust Funds
Other Funds
Totals All Funds
Budgeted Revenues / YTD % of Budget - By Fund Type
PGCC 6-18-25

Fund
Main Fund - Fund 01
Other Funds Included
General Fund
Capital Projects
Capital Funds
Local Water Project
Cemetery
Sewer
Golf
Sewer Lateral Loans
Enterprise Funds
Employee Benefit
Worker's Compensation
Liability Insurance
Internal Service Funds
Library
Cemetery
Yount
Trust Funds
Library / Poetry
Museum
Public Safety
Housing
Streets
Lighthouse
Community Development/CDBG
ARPA
Downtown/Hospitality Districts
Cable Franchise / Other
Other Funds
Totals All Funds
Expenses by Fund - FY 2024-25 (Unaudited)
Through May 2025
Revised Budget YTD
YTD % of
Projected
Purchase
Orders
YTD %
with POs Prior YTD
$ 35,604,346 $ 28,702,470 81% 2,169,153 $ 87% 26,061,382 $ 26,193 16,005 61% - 61% 22,884
35,630,539 28,718,475 81% 2,169,153 87% 26,084,266
$ 1,937,033 $ 795,328 41% $ - 41% $ 247,031
1,937,033 795,328 41% - 41% 247,031
1,010,925 1,562,987 >100% 116,529 >100% 735,485
720,349 567,416 79% 551 79% 458,282
6,032,635 2,979,129 49% 1,957,174 82% 2,065,139
755,057 827,845 >100% - >100% 481,802
- - 0% - 0% -
8,518,966 5,937,377 70% 2,074,254 94% 3,740,708
332,000 352,845 >100% - >100% 256,264
735,949 1,091,285 >100% - >100% 837,710
717,003 678,389 95% - 95% 865,294
1,784,952 2,122,519 119% - >100% 1,959,268
- - 0% - 0% -
- - 0% - 0% -
8,000 7,849 98% - 98% 5,658
8,000 7,849 98% - 98% 5,658
0%
100,571 54,969 55% 10,819 65% 101,646
165,800 58,809 35% 5,066 39% -
822,377 642,332 78% 33,498 82% 662,323
297,718 85,806 29% - 29% 119,700
3,773,841 1,287,551 34% 412,284 45% 1,451,559
199,450 114,628 57% - 57% 78,730
20,000 21,395 >100% 39,000 >100% 34,384
828,872 832,740 >100% - >100% 117,190
632,400 563,505 89% - 89% 329,730
146,000 97,518 67% 39,000 94% 430,641
6,987,029 3,759,253 54% 539,667 62% 3,325,903
$ 54,866,519 $ 41,340,801 75% $ 4,783,074 84% $ 35,362,834 Expenses
81%
41%
70%
119%
98%
54%
75%
General Fund
Capital Funds
Enterprise Funds
Internal Service Funds
Trust Funds
Other Funds
Totals All Funds
Budgeted Expenses / YTD % of Budget By Fund Type
PGCC 6-18-25

General Fund Revenues - FY 2024-25 (Unaudited)
Through May 2025
Revenue Account Revised Budget YTD Revenues
YTD % of
Budget
Year End
Projection
Prior YTD
Revenues
Prior YTD %
of PY Budget
Property Taxes $ 10,411,000 $ 10,437,179 100% 10,648,000 9,935,405 98% Sales Taxes 6,094,000 4,062,558 67% 5,389,000 4,505,065 75% Business License/Cannabis Taxes 583,000 286,076 49% 400,000 500,269 72% Franchise Taxes 1,659,000 1,034,781 62% 1,265,000 1,338,910 82% Utility User Taxes 2,043,000 1,970,984 96% 2,324,000 1,743,396 82% Transient Occupancy Tax 6,922,000 5,119,567 74% 6,258,000 5,505,984 82% Litter Abatement 210,000 106,163 51% 142,000 152,396 75% Construction Permits 1,191,000 865,731 73% 922,000 1,100,192 94% Zoning Enforcement 283,250 200,145 71% 201,000 205,561 100% Plan Check Fees 705,000 521,190 74% 577,000 454,755 90% Parking Meters 373,000 299,410 80% 333,000 304,338 90%
Water Entitlements 575,187 1,542,990 100% 1,500,000 488,809 84% Interest Earned 250,000 766,486 100% 1,281,000 290,911 60% Investment Market Value Gain/Loss - 287,610 100% - 212,995 60% Indirect Cost Reimbursement 551,000 414,000 75% 552,000 303,000 75% Total Major Revenues 31,850,437 27,914,870 88% 31,792,000 27,041,986 86% Total General Fund Revenues 33,312,727 15,261,090 46% 33,255,000 15,424,403 46% FY 2022-23 Tax Revenues Property Taxes Sales Taxes BL/Other Franchise Hotel Taxes Utility 9,330,981 5,614,305 549,856 1,570,875 6,635,688 2,097,934 100%
67%
49%
62%
96%
74%
98%
75%
72%
82%
82%
82%
Property Taxes - $10.4 million
Sales Taxes - $6.1 million
Business License/Cannabis Taxes - $0.6 million
Franchise Taxes - $1.7 million
Utility User Taxes - $2.0 million
Transient Occupancy Tax - $6.9 million
Budgeted Tax Revenues / YTD % of Budget - Current YTD vs Prior YTD 24-25 23-24
PGCC 6-18-25

Check Register Report - Summary by Fund - May 2025
Fund Amount
01 - General Fund Total $ 1,637,849.75
10 - Hospitality Imprvmt Dist. Total 196,909.50
11 - Library Book Fund Total 4,950.47
15 - Housing Fund Total 1,833.33
18 - Gas Tax Fund Total 25,314.75
24 - Stillwell Children'S Pool Total 1,348.96
27 - Lighthouse Maint.& Impv. Total 6,547.74
40 - Poetry Promotion Fund Total 437.32
70 - Emp Benefit Fund Total 40,058.56
71 - Workers Comp Fund Total 750.00
72 - Liability Ins Fund Total 666.67
74 - Local Water Project Total 12,165.57
75 - Cemetery Fund Total 13,664.74
76 - Sewer Fund Total 30,666.34
77 - Golf Fund Total 2,910.87
84 - American Rescue Plan-Arpa Total 20,672.00
Grand Total $ 1,996,746.57
PGCC 6-18-25

Check Register Report - Summary by Detailed View - May 2025 Fund Check Date Name Description Amount
01 - General Fund 5/2/2025 Aflac Ded:5201 Aflac P/T $ - Calif Law Enforcmen Ded:3200 Ltd Pd 576.00
Calpers Health Ded:122 Health 61,601.83
City Of Pacific Gro Ded:3301 Aflac Med 1,520.72
Eft Ded:*Ft Federal Tx 65,402.30
Pacific Grove City Ded:7000 Assoc Dues 882.75
Mass Mutual (457 Pl Ded:4000 Def Comp 12,740.36
Mtry County Dept Of Ded:0023 Garnish 396.92
Pacific Grove Manag Ded:7203 Assoc Dues 45.00
City Of Pacific Gro Ded:1003 Work Comp 10,623.82
City Of Pacific Gro Ded:7510 Pers Reimb 39.23
City Of Pacific Gro Ded:2103 Dental Fam 3,500.21
City Of Pacific Gro Ded:0005 Suta 134.57
Pers Ded:0020 Pers Er M3 76,309.79
Police Officers Ass Ded:7205 Assoc Dues 773.61
Legal Shield Ded:6100 Legal Svc 31.75
State Disability Ta Ded:0026 Sdi 4,751.16
Standard Insurance Ded:3500 Life Ins 1,433.25
Transamerica Employ Ded:5202 Transameri 311.82
Union Bank Of Calif Ded:4005 Pars-457 1,111.03
Vision Service Plan Ded:2504 Vision Fam 706.28
Aflac Apr 2025 Billing 290.28
Calif Law Enforcmen May 2025 Billing 32.00
Vision Service Plan May 2025 Coverage 13.00
5/9/2025 Us Bank D Gho Volunteer Eve 14,902.09
Alhambra & Sierra S Rec Bottled Water 114.87
Amazon Capital Serv Fd Ems Supplies 1,667.58
American Lock & Key Pd Repairs Unit 8 108.72
Amy Colony Volunteer Event 310.38
Arturo Acevedo Diaz Reimb Dl Class B 100.06
At&T Lghthse Internet 12 122.34
At&T Calnet 3 Admin Phone 3,259.98
Boot Barn Inc Pd Safety Boots 162.23
Brandon Sturm Reimb Class B Physi 150.00
Carmel Pine Cone Rec Summer Ad 740.00
Casey Day Mccloea Per Diems 159.50
Centralsquare Techn Finance Software Fy 4,962.96
Paleowest Llc City Council Prof S 2,375.00
Code Publishing, In Cty Cncl Web Fees 830.00
Comcast Pw Data 0389527 106.24
Copware, Inc. Pd Site License 705.00
Craft Electric Comp Lib Door Repairs 174.00
Dawn Delfino Mccloea Per Diems -
Eric Lu Rfnd Damage Deposit 206.00
Ewing Irrigation Pr B&G Landscape Suppl 134.37
Fastenal B&G Safety Gear 300.58
Fuse Hvac & Applian Pd Evidence Fridge 969.00
Granite Constructio Streets Supplies 968.48
Heihachiro Takarabe Pmt For Tai Chi Cla 112.00
Hometek Mem Bench Program 463.95
Ips Group, Inc Meter Fees Fy25 1,587.03
Jd Repairs Inc Fd Repairs Unit 641 180.00
Kayla Fisher Req For Refund 28.50
Kera Panni Rfnd Camp Fees 226.00
Liebert Cassidy Whi Cm Emply Legal Advi 3,015.00
Magallon Building C Ada And Curb/Gutter $ 14,798.00
Main Street Signs Street Signs 675.85
Mission Linen Suppl Fd Linen Cleaning F 363.15
Mission Uniform Ser Linen & Uniform Cle 367.54
Monterey Bay Pest C Fy25 Pest Control S 310.00
County Of Monterey Cjis Access 20,952.32
Monterey Peninsula B&G Paving 1,512.24
PGCC 6-18-25

Check Register Report - Summary by Detailed View - May 2025 Fund Check Date Name Description Amount
Monterey Tire Servi Pd Repairs Unit 7 120.00
Nielsen Merksamer Cvra Legal Services 7,650.00
Noland, Hamerly, Et Enayati Cases #21Cv 48.00
Odp Business Soluti Fin Office Supplies 217.85
O'Reilly Auto Enter B&G Repairs Supplie 982.66
Overhead Door Of Sa B&G Door Repairs 512.96
Pacific Gas & Elect Rec Electric 0956-9 6,774.47
Peninsula Welding & Oxygen Hyberbaric C 792.00
Robert Perrault Reimb Consultant Sv 7,440.15
Safety-Kleen System Street Oil Collecti 450.81
Savage Training Gro Pd Late Fees Traini 18.08
Sentry Alarm System Fy 24/25 Alarm Serv 473.33
Signworks Library Signage 549.75
Speakwrite Pd Dictation Servic 56.46
Blue Star Investiga Pd Backgrounds 2,600.00
Tope'S Tree Service Contract Tree Servi 3,580.00
Uline Rec Office Supplies -
All Star Elite Spor Rec Track Supplies 713.45
Verizon Business Pd Mobile Connectio 501.52
Vestis Services, Ll Linen Services Fy 2 182.31
Watsonville Ford Street Repair Unit 488.16
Wilson'S Plumbing & Heater Repair At Th 9,237.80
Dawn Delfino Mccloea Per Diems 159.50
Uline Rec Office Supplies 1,473.63
Comcast Ch Internet 0085844 311.23
Enterprise Fm Trust Lease Payoff 23Nxz6 21,766.15
Monterey County Rec Now Filing Fee Gwp 50.00
5/14/2025 American Supply Com B&G Janitorial Supp 6,375.54 At&T Mobility Pd Cell Phones 5185 1,908.10
Forest Hill Ace Har B&G Good Old Days 34.95
Pacific Gas & Elect Public Library 16,290.01
5/16/2025 Aflac Ded:5201 Aflac P/T 2,167.80
Calpers Health Ded:122 Health 62,286.20
City Of Pacific Gro Ded:3301 Aflac Med 1,520.72
Eft Ded:*Ft Federal Tx 74,912.98
Pacific Grove City Ded:7000 Assoc Dues 882.75
Mass Mutual (457 Pl Ded:4000 Def Comp 13,553.44
Mtry County Dept Of Ded:0023 Garnish 396.92
Pacific Grove Manag Ded:7203 Assoc Dues 45.00
City Of Pacific Gro Ded:1003 Work Comp 11,786.37
City Of Pacific Gro Ded:7510 Pers Reimb 39.23
City Of Pacific Gro Ded:2103 Dental Fam 3,529.19
City Of Pacific Gro Ded:0005 Suta 144.48
Pers Ded:0020 Pers Er M3 77,179.79
Police Officers Ass Ded:7205 Assoc Dues 765.61
State Disability Ta Ded:0026 Sdi 5,100.17
Transamerica Employ Ded:5202 Transameri 311.82
Union Bank Of Calif Ded:4005 Pars-457 802.89
Vision Service Plan Ded:2502 Visioneoee $ 712.92
Aflac Apr 2025 Billing 2,167.80
Pers May 25 Ual 351,013.58
Aflac Ded:5200 Aflac Prem 145.14
Eft Ded:*Ft Federal Tx 535.76
Pacific Grove City Ded:7000 Assoc Dues 26.75
City Of Pacific Gro Ded:1010 Work Comp 170.74
City Of Pacific Gro Ded:0005 Suta 1.35
Pers Ded:0020 Pers Er M3 556.11
State Disability Ta Ded:0026 Sdi 47.76
5/23/2025 Adeline Finley Rfnd Cancel Class 17.00
Alex Corning Rfnd Cancel Class 45.00
Alexandra White Rfnd Cancel Class 90.00
Amanda Mello Rfnd Cancel Class 12.50
PGCC 6-18-25

Check Register Report - Summary by Detailed View - May 2025 Fund Check Date Name Description Amount
Adrienne Davis Rfnd Cancel Class -
Antonio Espino Rfnd Cancel Class 45.00
Ashley Lin Rfnd Damage Deposit 206.00
Cheyenne Diaz Rfnd Tow Storage 240.00
Erica Downs-Karai Rfnd Cancel Class 45.00
Jane Thompson Rfnd Cancel Class 45.00
Jenny Jacox Rfnd Cancel Class 25.00
Jihyun Kwon Rfnd Cancel Class 45.00
Jody Garry Rfnd Cancel Class 12.50
Kateryna Beschasna Rfnd Cancel Class 45.00
Katie Hoops Rfnd Trxfr Credit 71.00
Kerrie Smith Rfnd Cancel Class 45.00
Kim Minwoo Rfnd Cancel Class 45.00
La Shouna Boyd Rfnd Cancel Class 45.00
Lauren Karasek Rfnd Cancel Class 45.00
Lisa Kelly Reimburse Permit Fe 870.85
Michael Szody Rfnd Permit Fees 189.60
Michelle Vine Rfnd Cancel Class 12.50
Samuel Lam Rfnd Cancel Class 45.00
Sarah Greenlee Rfnd Credit Class 84.00
Scott Mayhew Rfnd Cancel Class 45.00
Sirina Warfel Rfnd Cancel Class 45.00
California American 391 Oceanvw-Berwick 40,097.06
Amazon Capital Serv Pw Office Supplies 675.93
Amy Colony Mileage Reimbursemt 101.64
Arcpoint Labs Of Mo Cm Pre-Emplymt Scre 660.00
At&T Admin Phone 2539 63.14
At&T Calnet 3 Library Internet 33 249.63
Baker & Taylor Comp Library Supplies 365.22
Blue Strike Environ Agreement For Clima 20,485.50
Burke, Williams & S City Attorney Servi 88,113.50
Ca Dept Of Justice Cm Doj Backgrnd Chk 463.00
Caltronics Business Konica Copies Fy 24 -
Chevrolet Of Watson Pd Repairs Unit 9 410.51
Comcast Rec Internet 021497 113.26
Cps Hr Consulting Cm Bilingual Testin 444.50
Craft Electric Comp B&G Video Cameras -
Denise Duffy & Asso Carryfroward From P 7,519.00
Dlt Solutions Llc Kace Sys Software L 126.40
Dwan Elevator Co Lift Repair - Libra 14,874.07
Engineered Fire Sys Fd Plan Review Apri 540.00
Ewing Irrigation Pr B&G Irrigatn Suppli $ 2,687.88
Coastal Fabrication B&G Repairs Unit 61 187.80
Ferguson Enterprise Arnett Park Supplie 365.37
Field Of Dreams Des Rec Summer Uniforms 2,399.13
Gachina Landscape M Fy25 Park Mowing Se 1,339.00
Gardaworld May Fees 145.04
Mark'S Barn Auto Bo Street Repair Unit 4,312.83
Green Fields Falcon Gull Abatement 7,200.00
Green Valley Landsc Perkins Park Landsc 12,076.80
Hana Gardens Seasid Landscape Supplies 381.35
Harris & Associates Contract Planning S 20,868.75
Hayward Lumber Comp B&G Supplies 674.92
Kimball Midwest Mech Stock 1,107.63
Secure Solutions Pd Backgrounds 250.00
Language Line Servi Pd Language Service 78.83
Maya Tice Reimb Lifegrd Train 1,145.93
Mission Uniform Ser Linen & Uniform Cle 1,995.45
Monterey Bay Pest C Fy25 Pest Control S 1,250.00
Monterey Bay Treewo Arborist Services F 8,900.00
Monterey County Wee Cdd Ph Lcp 936.00
Monterey Tire Servi Pd Repairs Unit 6 141.85
PGCC 6-18-25

Check Register Report - Summary by Detailed View - May 2025 Fund Check Date Name Description Amount
Quadient Finance Us Postage 1,300.00
Odp Business Soluti Fin Office Supplies 101.22
Pacific Chess Acade Pmt For Chess Class 1,638.00
Pacific Grove Hardw Strt Repair Supplie 2,710.25
Pacific West Water Cdd Water Service 85.70
Peninsula Welding & Mech Stock 581.85
Pure Water Street Water Servic 94.80
Primo Brands Pd Water Services 68.90
Rental Depot Monter Stump Cutter Rental 590.00
Rincon Consultants, Housing Element 119,539.90
Varajic Consulting Pmt Art/Lego Classe 1,512.00
Sentry Alarm System Fy 24/25 Alarm Serv 1,969.83
Spca Of Monterey Co Pd Animal Services 2,205.00
State Controller'S 2024 Offsets Progra -
Sturdy Oil Company A/R Fuel April 13,639.91
Tope'S Tree Service Contract Tree Servi 28,467.49
Toro Petroleum Corp Fd Diesel April 1,667.41
Vestis Services, Ll Linen Services Fy 2 386.03
Brian Whitson Museum Cleaning Fy2 2,480.00
Swift Car Wash Pd Car Wash June 300.00
William Bans Rfnd Requested 187.50
Adrienne Davis Rfnd Cancel Class 45.00
Caltronics Business Konica Copies Fy 24 1,048.39
Craft Electric Comp B&G Video Cameras 1,715.16
State Controller'S 2024 Offsets Progra 68.23
5/30/2025 Aflac Ded:5201 Aflac P/T 2,167.80
City Of Pacific Gro Ded:3301 Aflac Med 1,520.72
Eft Ded:*Ft Federal Tx 72,336.79
Mass Mutual (457 Pl Ded:4000 Def Comp 13,553.44
Mtry County Dept Of Ded:0023 Garnish 396.92
City Of Pacific Gro Ded:1003 Work Comp 10,807.44
City Of Pacific Gro Ded:7510 Pers Reimb 39.23
City Of Pacific Gro Ded:0005 Suta 137.43
Pers Ded:0020 Pers Er M3 78,545.06
State Disability Ta Ded:0026 Sdi $ 4,851.21
Transamerica Employ Ded:5202 Transameri 311.82
Union Bank Of Calif Ded:4005 Pars-457 836.04
Vision Service Plan June 2025 Coverage 19.63
10 - Hospitality Imprvmt Dist. 5/9/2025 See Monterey Hid Q3 Fy25 Jan-Mar - Pacific Grove Chamb Mctid Jan-Mar 2025 73,909.50
5/23/2025 See Monterey Mctid Jan-Mar 2025 73,909.50
Pacific Grove Chamb Hid Jan-Mar 2025 49,090.50
11 - Library Book Fund 5/9/2025 Us Bank A Canales Books/Mat 883.21 Amazon Capital Serv Lib Books & Materia 202.40
Midwest Tape Lib Books & Materia 90.66
5/23/2025 Amazon Capital Serv Lib Books & Materia 62.75 Baker & Taylor Comp Books And Materials 3,711.45
15 - Housing Fund 5/16/2025 Pers May 25 Ual 1,833.33
18 - Gas Tax Fund 5/9/2025 Caltrans Signal Lighting 1,594.85 5/14/2025 Pacific Gas & Elect Forest Av Sunset Av 167.91 5/16/2025 Pers May 25 Ual 2,333.33
5/23/2025 California American Cem 4% 44.06
Bear Electrical Sol Traffic Signal Main 250.00
National Stock Sign Street Signs 70.40
Pacific Gas & Elect Pw Electric 4482-4 9,066.24
Pacific Products & General Street Sign -
Sturdy Oil Company Gas Tax April 958.03
Pacific Products & General Street Sign 10,829.93
24 - Stillwell Children'S Pool 5/14/2025 American Supply Com Lover Pt Pool Suppl 545.90 5/23/2025 Aloha Pool And Spa Pool Maintenance -
Peninsula Pool Serv Pool Supplies 260.53
Aloha Pool And Spa Pool Maintenance 542.53
PGCC 6-18-25

Check Register Report - Summary by Detailed View - May 2025 Fund Check Date Name Description Amount
27 - Lighthouse Maint.& Impv. 5/9/2025 Dennis Tarmina Lh Maintenance 653.52 Edward Gallo Lighthouse Maintena 19.65
J.D. Yeatts & Son, Lh Gift Shop Merch 2,731.76
5/14/2025 Pacific Gas & Elect Asilomar Blvd Pg Lh 209.06 5/23/2025 California American 90 Asilomar 197.47
Amazon Capital Serv Lighthouse Gift Sho 20.64
At&T Calnet 3 Lighthouse Phone 32 31.76
Escarraga'S Luxury Lh Cleaning Nov 960.00
Pacific Grove Hardw Lh Repair Supplies 98.88
United States Light Lh Gift Shop Merch 1,625.00
40 - Poetry Promotion Fund 5/9/2025 Us Bank R Gaither Poetry Wk 137.32 Rafid Yalda Lib Poetry Promotio 200.00
5/23/2025 Ayaz Pirani Lib Poetry Promotio 100.00
70 - Emp Benefit Fund 5/2/2025 Calpers Health May25 Ret & Changes 12,943.28 P&A Administrative Cobra Admin Open Fe -
Standard Insurance May 2025 Premiums 3,012.59
5/9/2025 Claremont Behaviora Eap Services May 648.15
5/16/2025 Standard Insurance May 2025 Coverage 6,869.80 5/23/2025 Pars Ars Pars Fees March 370.31
5/30/2025 P&A Administrative Cobra Admin Open Fe 500.00 Calpers Health Jun25 Ret & Changes 12,481.77
Standard Insurance June 2025 Premiums 3,232.66
72 - Liability Ins Fund 5/16/2025 Pers May 25 Ual 1,416.67 74 - Local Water Project 5/9/2025 Pacific Gas & Elect Lwp Electric 0792-1 9,374.28 5/23/2025 California American 1313 Ocean View Blv 2,791.29 75 - Cemetery Fund 5/14/2025 Forest Hill Ace Har Cem Supplies 47.60 Llorin-Velasquez Co Fy24/25 Cemetery Ma 7,950.00
Pacific Gas & Elect Cemetery $ 125.03
5/16/2025 Pers May 25 Ual 3,750.00
5/23/2025 California American 1254 Delmontecem70% 713.05 Ewing Irrigation Pr Cem Credit Overpmt (123.62)
Hayward Lumber Comp Cemetery Supplies 106.97
Mission Uniform Ser Linen & Uniform Cle 665.15
Odp Business Soluti Cem Office Supplies 29.20
Pacific Grove Hardw Cem Repair Supplies 385.49
Sturdy Oil Company Cem Fuel April 15.87
76 - Sewer Fund 5/9/2025 Fastenal Sewer Safety Gear 300.56 Don Chapin Co., Inc Sewer Video 1,870.00
Neill Engineers Cor Admin Engineering S 1,000.00
O'Reilly Auto Enter Sewer Repair Suppli 24.02
Pacific Gas & Elect Pw Sewer Elec 5126- 1,289.65
Safety-Kleen System Sewer Oil Collectio 450.81
5/14/2025 Pacific Gas & Elect O V 9Th Pump #2 3,156.75
5/16/2025 Pers May 25 Ual 11,750.00
5/23/2025 California American 263 Grove Acres 510.99
At&T Pw Sewer Phone 1395 126.28
Don Chapin Co., Inc Sewer Line Maintena 2,590.00
Kimball Midwest Sewer Supplies 682.42
Monterey Bay Air Re Annual Renewal Fees 5,470.00
Mission Uniform Ser Linen & Uniform Cle 665.14
Pure Water Sewer Water Service 23.70
Sturdy Oil Company Sewer Fuel April 756.02
77 - Golf Fund 5/14/2025 Pacific Gas & Elect 1313 Ocean View Blv 132.93 5/23/2025 California American 77 Asilomar Golf Hs 2,777.94 84 - American Rescue Plan-Arpa 5/23/2025 Coast Counties Glas Cip25-09, Library D 20,672.00 $ 1,996,746.57
PGCC 6-18-25

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: Lori Frati, Finance Manager
MEETING DATE: June 18, 2025
SUBJECT: Amended Agreement with HdL Companies for Sales Tax, Business Licenses, and TOT Collection and Compliance Services.

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

RECOMMENDATION

1. Authorize the Mayor to sign an amendment to the existing agreement with HdL Companies for a 2-year extension to June 30, 2027 (renewable for an additional 2 years thereafter) in the amount not to exceed $60,000 for the following:

Sales, Use and Transactions Tax Auditing and Information Services; Business License Tax Operations and Compliance Services; Transient Occupancy Tax Operations Management Services; and

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

DISCUSSION
In 2015, The City of Pacific Grove entered into a contract with HdL Companies for Business License Tax Services. This included database management, account processing, on-line filing and payment processing for businesses, and a business support center.

In 2016, The City entered into a contract with HdL Companies for Sales Tax Services and Transient Occupancy Tax Services. The HdL Companies Sales Tax Services include: Database management, quarterly reporting by individual businesses and categories; working with the State on tax allocation reviews, and assisting with budgetary projections. Their Transient Occupancy Tax (TOT) Services include: database management, reporting, account processing, on-line filing and payment processing, customer support, compliance monitoring and annual reporting.

In 2020, Council approved a two-year contract with HdL Companies that included all three services:

Sales Tax Services, Business License Tax Services, and Transient Occupancy Tax Services. The consolidation of the contract to include all three services and successful negotiations reduced the annual base cost for services by 32%.

On July 1, 2022, the City entered into a short-term contract with HdL Companies in an amount not to exceed $39,000. In October 2022, the agreement was amended through June 30, 2023, with an annual cost not to exceed $60,000. In July 2023, the City extended the agreement for an additional year with an expiration date of June 30, 2024. On June 28, 2024, the agreement was extended for an additional year PGCC 6-18-25

expiration date of June 30, 2024. On June 28, 2024, the agreement was extended for an additional year with an expiration date of June 30, 2025.

Staff is recommending a fourth amendment, extending the agreement for an additional 2 years with an expiration date of June 30, 2027, with an annual cost not to exceed $60,000. The City will be adopting a two-year budget with an ending date of June 30, 2027. Approving the recommended two-year agreement with HdL Companies will align with the 2-year budget cycle.

The proposed agreement amendment will include the agreement term and amount; and will require the Mayor's signature. A copy of the amendment is attached for reference, with the scope of services retained in the original agreement.

Extend the agreement term to June 30, 2027, with an option to extend it for an additional 2 years. (The option to extend beyond 2027 would require additional Council approval).

If approved, staff will prepare the amendment based on the information listed above. There are no other changes proposed to the agreement.

OPTIONS

1. Take no action

2. Provide alternate direction.

FINANCIAL IMPACT:

The funds to support this agreement are included in the FY 25/26 - FY26/27 budget.

FOCUSED PRIORITY AREA: Not Applicable.

Attachments
HdL Companies Agreement Extension
PGCC 6-18-25

AMENDMENT #4

VENDOR SERVICES AGREEMENT WITH HINDERLITER DE
LlAMAS AND ASSOCIATES DBA HDL COMPANIES
WHEREAS, the City of Pacific Grove (“City”) and Hdl Companies (“Contractor”) entered into a Professional Services Agreement (“Agreement”) effective July 1, 2022; and WHEREAS, the City and Contractor entered into Amendment #1 signed by the City on October 31, 2022 to continue the Agreement in full force and effect through June 30, 2023 and provided that upon mutual written agreement, the terms of the Agreement can be extended annually for an additional one (1) year period, or longer as the parties agree; and
WHEREAS, the City and Contractor entered into Amendment #2 signed by the City on July 26, 2023 to continue the Agreement in full force and effect through June 30, 2024 and provided that upon mutual written agreement, the terms of the Agreement can be extended annually for an additional one (1) year period, or longer as the parties agree; and
WHEREAS, the City and Contractor entered into Amendment #3 signed by the City on June 28, 2024 to continue the Agreement in full force and effect through June 30, 2025 and provided that upon mutual written agreement, the terms of the Agreement can be extended annually for an additional one (1) year period, or longer as the parties agree; and
WHEREAS, the City and Contractor desire to amend certain terms of the Agreement; NOW, THEREFOR, the parties agree as follows:

A. The Agreement is amended as follows:

1. Term. Unless terminated in accordance with Section 8 with the Agreement, the Agreement will continue in full force and effect through June 30, 2027. Upon mutual written agreement, the term of this Agreement can be extended annually for additional two (2) year period, or longer as the parties agree.

2. Payment. The total amount of money paid to the Contractor for the Services initially contemplated by the Agreement shall not exceed the sum of $60,000 annually unless otherwise first approved in writing by the City.

B. All other terms of the Agreement remain the same.

CITY OF PACIFIC GROVE CONSULTANT
By: By:

City Mayor Consultant
Date: Date:

PGCC 6-18-25

By: Department Head
Finance/Risk Management
Date:

By:

Approved As To Form:

City Attorney
Date : ____________
PGCC 6-18-25

AMENDMENT #3

VENDOR SERVICES AGREEMENT WITH HDL COMPANIES
WHEREAS, the City of Pacific Grove (“City”) and Hdl Companies (“Contractor”) entered into a Professional Services Agreement (“Agreement”) effective July 1, 2022; and WHEREAS, the City and Contractor entered into Amendment #1 signed by the City on October 31, 2022 to continue the Agreement in full force and effect through June 30, 2023 and provided that upon mutual written agreement, the terms of the Agreement can be extended annually for an additional one (1) year period, or longer as the parties agree; and
WHEREAS, the City and Contractor entered into Amendment #2 signed by the City on July 26, 2023 to continue the Agreement in full force and effect through June 30, 2024 and provided that upon mutual written agreement, the terms of the Agreement can be extended annually for an additional one (1) year period, or longer as the parties agree; and
WHEREAS, the City and Contractor desire to amend certain terms of the Agreement; NOW, THEREFOR, the parties agree as follows:

A. The Agreement is amended as follows:

1. Term. Unless terminated in accordance with Section 8 with the Agreement, the Agreement will continue in full force and effect through June 30, 2025. Upon mutual written agreement, the term of this Agreement can be extended annually for additional one (1) year period, or longer as the parties agree.

2. Payment. The total amount of money paid to the Contractor for the Services initially contemplated by the Agreement shall not exceed the sum of $60,000 annually unless otherwise first approved in writing by the City.

B. All other terms of the Agreement remain the same.

CITY OF PACIFIC GROVE CONSULTANT
By: By:

City Mayor Consultant
Date: Date:

By:

Department Head
Date:

By:

Finance/Risk Management
Approved As To Form: City Attorney
Date : ________________ June 28, 2024
PGCC 6-18-25

AMENDMENT #2

VENDOR SERVICES AGREEMENT WITH HDL COMPANIES
WHEREAS, the City of Pacific Grove (“City”) and Hdl Companies (“Contractor”) entered into a Professional Services Agreement (“Agreement”) effective July 1, 2022; and WHEREAS, the City and Contractor entered into Amendment #1 signed by the City on October 31, 2022 to continue the Agreement in full force and effect through June 30, 2023 and provided that upon mutual written agreement, the terms of the Agreement can be extended annually for an additional one (1) year period, or longer as the parties agree; and
WHEREAS, the City and Contractor desire to amend certain terms of the Agreement; NOW, THEREFOR, the parties agree as follows:

C. The Agreement is amended as follows:

1. Term. Unless terminated in accordance with Section 8 with the Agreement, the Agreement will continue in full force and effect through June 30, 2024. Upon mutual written agreement, the term of this Agreement can be extended annually for additional one (1) year period, or longer as the parties agree.

2. Payment. The total amount of money paid to the Contractor for the Services initially contemplated by the Agreement shall not exceed the sum of $60,000 annually unless otherwise first approved in writing by the City.

D. All other terms of the Agreement remain the same.

CITY OF PACIFIC GROVE CONSULTANT
Bill Peake
By: Bill Peake (Aug 1, 2023 14:44 PDT) By: Andrew Nickerson (Jul 26, 2023 08:35 PDT) City Mayor Consultant Date: Aug 1, 2023 Date: Jul 26, 2023
By:

Department Head
Date: Jul 26, 2023
By:

Finance/Risk Management
Approved As To Form: Brian Pierik Brian Pierik (Aug 1, 2023 15:00 PDT) City Attorney Date: Aug 1, 2023
PGCC 6-18-25

10/31/2022 10/24/2022
DocuSign Envelope ID: AE6DBD77-60A0-40C0-AC5C-72C58225A56F AMENDMENT # 1

VENDOR SERVICES AGREEMENT WITH HDL COMPANIES
WHEREAS, the City of Pacific Grove (“City”) and HdL Compaines (“Contractor”) entered into a Professional Services Agreement (“Agreement”) effective July 1, 2022; and WHEREAS, the City and Contractor desire to amend certain terms of the Agreement; NOW, THEREFORE, the parties agree as follows:

A. The Agreement is amended as follows:
a. Term. Unless terminated in accordance with Section 8 within the AGREEMENT, the AGREEMENT will continue in full force and effect from the Effective Date through June 30, 2023. Upon mutual written AGREEMENT, the term of this AGREEMENT can be extended annually for an additional one (1) year period, or longer as the parties agree.
b. Payment. The total amount of money paid to the VENDOR, for the Services initially contemplated by this AGREEMENT, shall not exceed the sum of $60,000 annually unless otherwise first approved in writing by the City.

B. All other terms of the agreement remain the same.

CITY OF PACIFIC GROVE HDL COMPANIES
By: By:

City Mayor Andrew Nickerson, President
By:

Department Head
By:

Finance/Risk Management
By:

City Attorney
10/24/2022
10/31/2022
10/24/2022
PGCC 6-18-25

DocuSign DocuSign Envelope ID: AE6DBD77-60A0-40C0-AC5C-72C58225A56F Envelope ID: 68E23627-421E-4257-B11B-2615ED0CC280 Vendor Services Agreement 07.19.2022

CITY OF PACIFIC GROVE

VENDOR SERVICES AGREEMENT
This VENDOR SERVICES AGREEMENT (“Agreement”) is made and effective July 1, 2022, by and between the City of Pacific Grove, a municipal corporation (“City”), and HdL Companies (“VENDOR”).

City wishes to retain the services of an experienced and qualified VENDOR to provide:

1. Sales, Use and Transactions Tax Auditing and Information Services

2. Business License Tax Operations and Compliance Services

3. Transient Occupancy Tax Operations Management Services (“Services”). VENDOR represents and warrants that it is qualified to perform those Services. In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
Unless terminated in accordance with Section 8 below, the AGREEMENT will continue in full force and effect from the Effective Date through October 31, 2022. Upon mutual written AGREEMENT, the term of this AGREEMENT can be extended annually for an additional one (1) year period, or longer as the parties agree.

2. SCOPE OF SERVICES
VENDOR will provide the Services listed in the Scope of Services attached hereto as Exhibit A. VENDOR warrants that all work and services set forth in the Scope of Services will be performed in a competent, professional and satisfactory manner.

3. PERFORMANCE
a. VENDOR shall at all times faithfully, competently and to the best of its ability, experience, and talent, perform all tasks described herein. VENDOR shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of VENDOR hereunder in meeting its obligations under this Agreement.
b. VENDOR shall obtain a valid City Business License and shall maintain said Business License for the term of this Agreement and any extensions. c. VENDOR shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by VENDOR or in any way affect the performance of its Services pursuant to this Agreement. VENDOR shall at all times observe and comply with all such laws and regulations. City, and its officers, PGCC 6-18-25

DocuSign DocuSign Envelope ID: AE6DBD77-60A0-40C0-AC5C-72C58225A56F Envelope ID: 68E23627-421E-4257-B11B-2615ED0CC280 Vendor Services Agreement 07.19.2022
employees, and agents shall not be liable at law or in equity occasioned by failure of VENDOR to comply with this Section.
d. VENDOR agrees that in the performance of this Agreement or any sub-agreement hereunder, neither VENDOR nor any person acting on VENDOR’s behalf shall refuse to employ or refuse to continue in any employment any person or discriminate on the basis of race, religious creed, color, national origin, ancestry, disability, medical condition, genetic information, marital status, sexual preference, sex, gender identity, gender expression, military or veteran status or age. Harassment in the workplace is not permitted in any form. VENDOR further agrees to comply with all laws with respect to employment when performing this Agreement.
e. VENDOR shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached to and part of this Agreement.
f. VENDOR declares and warrants that no undue influence or pressure is used against or in concert with any officer, employee or agent of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial agreement or financial inducement. No officer, employee, or agent of City will receive compensation, directly or indirectly, from VENDOR, or from any officer, employee or agent of VENDOR, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to any and all remedies at law or in equity.

4. CITY MANAGEMENT
The City Manager, or designee, shall represent City in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by VENDOR, but not including the authority to enlarge the Scope of Work or change the compensation due to VENDOR. The City Manager shall be authorized to act on City’s behalf and to execute all necessary documents which enlarge the Scope of Work or change VENDOR’s compensation, subject to Section 6 hereof.

5. PAYMENT
a. For Services rendered pursuant to this AGREEMENT, VENDOR shall be paid in accordance with the Payment Schedule attached hereto as Exhibit B, provided, however, that in no event will the total amount of money paid the VENDOR, for the Services initially contemplated by this AGREEMENT, exceed the sum of $39,000 unless otherwise first approved in writing by the City. b. The City Manager’s contract authority is limited to $39,999.99, which includes all costs. Contracts, including any contract amendments that exceed the total threshold, PGCC 6-18-25

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require City Council approval. Any contracts, including contract amendments that exceed the total threshold, which do not have City Council approval, shall be void. c. VENDOR shall submit invoices monthly for actual Services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for Services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If City disputes any of VENDOR’s fees, it shall give written notice to VENDOR within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.

6. INSPECTION
City shall at all times have the right to inspect the work and materials. VENDOR shall furnish all reasonable aid and assistance required by City for the proper examination of the work and all parts thereof. Such inspection shall not relieve VENDOR from any obligation to perform said work strictly in accordance with the specifications or any modifications thereof and in compliance with the law.

7. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a. City may at any time, for any reason, without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon VENDOR at least thirty (30) days prior written notice. Upon receipt of said notice, VENDOR shall immediately cease all work under this Agreement, unless the notice provides otherwise. If City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, City shall pay to VENDOR the actual value of the Services performed up to the time of termination, provided that the Services performed are of value to the City. Upon termination of the Agreement pursuant to this Section, VENDOR shall submit an invoice to City pursuant to Section 6.c.

8. DEFAULT OF VENDOR/FORCE MAJEURE
a. VENDOR’s failure to comply with the provisions of this Agreement shall constitute a default. In the event that VENDOR is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating VENDOR for any Services performed after the date of default and can terminate this Agreement immediately by written notice to the VENDOR. If such failure by the VENDOR to make progress in the performance of Services hereunder arises out causes beyond the VENDOR’s control, and without fault or negligence of the VENDOR, it shall not beconsidered a default. b. If the City Manager or designee determines VENDOR is in default in the performance of any of the terms or conditions of this Agreement, they shall cause to be served upon VENDOR a written notice of the default. The VENDOR shall have ten (10) days after PGCC 6-18-25

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service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event VENDOR fails to cure its default within such period of time or fails to present City with a written plan for the cure of the default, City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

9. OWNERSHIP OF DOCUMENTS
a. VENDOR shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of Services under this Agreement. VENDOR shall maintain adequate records of Services provided in sufficient detail to permit an evaluation of Services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. VENDOR shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records at VENDOR’s office; shall permit City to make copies and transcripts there from as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. If there is a substantial billing deviation adverse to City, then the cost of an audit shall be borne by CONSULTANT. Such records, together with supporting documents, shall be maintained at City Hall for a minimum period of five (5) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the Services to be performed pursuant to this Agreement shall become the sole property of City and may be used, reused, or otherwise disposed of by City without the permission of VENDOR. With respect to computer files, VENDOR shall make available to City, at City’s office and upon reasonable written request by City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files.

Consultant will comply with the requirements of the applicable laws, ordinances and/or regulations of which it has been informed by Client pursuant to Section 5.1 concerning the confidentiality of tax records.

As used herein, the term “proprietary information” means all information, techniques, processes, services or material that has or could have commercial value or other utility in Consultant’s Business, including without limitation: Consultant’s (i) software, computer or data processing programs; (ii) data processing applications, routines, subroutines, techniques or systems; (iii) desktop or web-based software; (iv) audit, tax or fee collection/administration or business processes, methods or routines; (v) marketing plans, analyses and strategies; and (vi) Confidentiality and Warranty; Records.

PGCC 6-18-25

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materials, techniques and intellectual property used. Except as otherwise required by law, Client must hold in confidence and may not use (except as expressly authorized by this Agreement) or disclose to any other party any proprietary information provided, learned of or obtained by Client in connection with this Agreement.

All documents, preliminary drafts, communications and any and all other work product related to the Services and provided by Consultant to Client either in hard copy or electronically are the property of Client. This does not include any software, programs, methodologies or systems used in the creation of such work product, nor does it include any drafts, notes or internal communications prepared by Consultant in the course of performing the Services that were not otherwise provided to Client in either hardcopy or electronic form, all of which may be protected by Consultant or others’ copyrights or other intellectual property. It is possible that any documents, drafts, communications or other work product provided to Client may be considered public records under applicable law and/or may be discoverable through litigation. Consultant may publicly state that it performs the Services for Client.

Subject to applicable law, Consultant is responsible for retaining all final documents and other final work product related to the Services for a period of not less than three (3) years from the date provided to Client. Retention of any other documents, preliminary drafts, communications and any and all other work product provided to Client by Consultant is the responsibility of Client.

Consultant has no responsibility to retain any drafts, notes, communications, emails or other writings created or received by Client in the course of performing the Services (other than the final documents and other final work product related to the Services and provided to Client for the term of years referenced above).

10. RECORD AUDIT
In accordance with Government Code, Section 8546.7, for expenditures of greater than $10,000, records of both City and VENDOR shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.

11. INDEMNIFICATION
VENDOR shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, employees, agents, and volunteers (collectively, City) from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with VENDOR’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both City and VENDOR, or should City otherwise find VENDOR’s legal counsel unacceptable, then VENDOR shall reimburse the City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The VENDOR shall promptly pay any final judgment rendered against the City (and its officers, employees, agents and volunteers) with respect to claims determined by a trier of fact to have been the result of the PGCC 6-18-25

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VENDOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

VENDOR obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by City. However, without affecting the rights of City under any provision of this agreement, VENDOR shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of VENDOR will be for that entire portion or percentage of liability not attributable to the active negligence of City.

No City officer, employee or agent shall be personally liable to VENDOR, in the event of any default or breach by City or for any amount that may become due to VENDOR. in no event will VENDOR be liable
for any lost revenues or lost profits, or any special, incidental, or consequential damages of any nature. VENDORS’s duty to indemnify and hold harmless CITY shall not apply to claims for liability which arise from the issuance or non-issuance of any registration, license or permit.

12. INSURANCE
Without limiting VENDOR’s indemnification of City, and prior to commencement of work, VENDOR shall obtain, provide, and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described in Exhibit C and in a form that is satisfactory to City.

13. INDEPENDENT CONTRACTOR
a. VENDOR is and shall at all times remain as to City a wholly independent contractor.

The personnel performing the services under this Agreement on behalf of VENDOR shall at all times be under VENDOR’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of VENDOR or any of VENDOR’s officers, employees, or agents, except as set forth in this Agreement. VENDOR shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. VENDOR shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner.

PGCC 6-18-25

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b. No employee benefits shall be available to VENDOR in connection with the performance of this Agreement. Except for the fees paid to VENDOR as provided in the Agreement, City shall not pay salaries, wages, or other compensation to VENDOR for performing services hereunder for City. City shall not be liable for compensation or indemnification to VENDOR for injury or sickness arising out of performing services hereunder.
c. Any and all employees or sub-contractors of VENDOR under this Agreement, while engaged in the performance of any work or services required by VENDOR under this Agreement, shall be considered employees or sub-contractors of VENDOR only and not of City. Any and all claims that may arise under the Workers’ Compensation Act on behalf of said employees or sub-contractors, while so engaged and all claims made by a third party as a consequence of any negligent act or omission on the part of the VENDOR’s employees or sub-contractors, while so engaged in any of the work or services provided for or rendered herein shall not be City’s obligation.

14. SUBCONTRACTORS
Before Vendor retains or hires a subcontractor to provide any work, labor, or services relative to this AGREEMENT, VENDOR must:
a. Present the name and identifying information of the subcontractor that will provide any work, labor, or services to City.
b. Present to the City the form of subcontract that will be used with the subcontractor for City’s approval, which approval will not be unreasonably withheld. Such subcontract AGREEMENT must include an indemnity agreement that is generally in accord with the indemnity obligations contained in Section 11 of this Agreement and must specifically name the City as an indemnified party; and c. Secure from the subcontractor evidence of insurance coverage that meets with this Agreement including naming the City as an additional insured as required by this Agreement, unless such requirement is waived in writing by the City.

15. NO BENEFIT TO ARISE TO CITY OFFICERS AND EMPLOYEES
No City officer, employee of City, or their designees or agents, and no public officer who exercises authority over or responsibilities with respect to the Services provided under the Agreement during their tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Services performed under this Agreement.

16. CONFLICT OF INTEREST
VENDOR shall at all times avoid conflicts of interest, or the appearance of conflicts of interest, in the performance of this Agreement, and shall comply with the City’s conflict of interest code.

PGCC 6-18-25

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If City determines VENDOR comes within the definition of Contractor under the Political Reform Act (Government Code §87100 et seq.), VENDOR shall complete and file and shall require any other person performing Services under this Agreement to complete and file a “Statement of Economic Interest” with City disclosing VENDOR’s and/or such other person’s financial interests.

17. NO WAIVER OF BREACH/TIME
The waiver by City of any breach of any term or promise contained in this Agreement shall not be deemed to be a waiver of such term or provision or any subsequent breach of the same or any other term or promise contained in this Agreement. Time is of the essence in carrying out the duties hereunder.

18. CONFIDENTIAL INFORMATION/RELEASE OF INFORMATION
a. All information gained by VENDOR in performance of this Agreement shall be considered confidential and shall not be released by VENDOR without City’s prior written authorization. VENDOR, its officers, employees, agents, or sub-contractors, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered “voluntary” provided VENDOR gives City notice of such court order or subpoena. b. VENDOR shall promptly notify City should VENDOR, its officers, employees, agents, or sub-contractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the Services performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent VENDOR and/or be present at any deposition, hearing, or similar proceeding.

VENDOR agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by VENDOR. However, City’s right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

19. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of PGCC 6-18-25

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the party as set forth below or at any other address as that party may later designate by notice:

To City: Tori Hannah
Administrative Services Director/Assistant City Manager City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
To Vendor: Andrew Nickerson
President
Hinderliter, de Llamas, and Associates (HdL)
120 S. State College Blvd., Suite 200
Brea, CA 92821
Notice is effective on the date of personal service, or 5 days following deposit in a United States mailbox, or date of postmark. The parties may agree to notice by email.

20. THIRD PARTY BENEFICIARIES
Nothing contained in this Agreement shall be construed to create, and the parties do not intend to create, any rights in third parties.

21. ASSIGNMENT
VENDOR shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of City. Subject to the foregoing, all terms of the Agreement will be binding upon, enforceable by and inure to the benefit of the parties and their successors and assigns.

22. GOVERNING LAW
City and VENDOR understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in Monterey County, or the federal district court with jurisdiction over the City. VENDOR agrees not to commence or prosecute any dispute arising out of or in connection with this Agreement other than in the aforementioned courts and irrevocably consents to the exclusive personal jurisdiction and venue of the aforementioned courts.

23. DISPUTE RESOLUTION; ATTORNEY’S FEES
VENDOR shall continue to perform under this Agreement during any dispute. VENDOR and City hereby agree to make good faith efforts to resolve disputes as quickly as possible.

In the event any dispute arising from or related to this Agreement results in litigation or PGCC 6-18-25

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arbitration, the prevailing party shall be entitled to recover all reasonable costs incurred, including court costs, attorney fees, expenses for expert witnesses (whether or not called to testify), expenses for accountants or appraisers (whether or not called to testify), and other related expenses. Recovery of these expenses shall be as additional costs awarded to the prevailing party, and shall not require initiation of a separate legal proceeding.

24. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of VENDOR warrants and represents that they have the authority to execute this Agreement on behalf of the VENDOR and the authority to bind VENDOR to the performance of its obligations hereunder.

25. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to their obligations described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party’s own independent investigation of any and all facts such party deems material.

26. AMENDMENT
a. Any modification or amendment to this Agreement must be in writing. b. Neither City nor VENDOR shall be deemed to have waived any obligation of the other, or to have agreed to any modification to this Agreement unless it is in writing, and signed by the party giving the waiver.

27. INTERPRETATION OF CONFLICTING PROVISIONS
In the event of any conflict or inconsistency between the provisions of this Agreement and the Provisions of any exhibit or other attachment to this Agreement, the provisions of this Agreement shall prevail and control

28. SEVERABILITY
If any term of this Agreement is held invalid by a court of competent jurisdiction or arbitrator the remainder of this Agreement shall remain in effect.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

CITY OF PACIFIC GROVE VENDOR
PGCC 6-18-25

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By: By:

Department Director Vendor
Date: 9/6/2022 Date: 9/6/2022
By: By:

City Manager or Mayor City Administrative Services Department Date: 9/6/2022 Date: 9/6/2022
Approved As To Form:

City Attorney
9/6/2022
Date
Attachments: Exhibit A Scope of Services
Exhibit B Payment Schedule
Exhibit C Insurance Requirements
PGCC 6-18-25

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Exhibit A
Scope of Work/Services
The CONTRACTOR shall perform the following services (collectively, the “Services”):

A. SALES TAX AND ECONOMIC ANALYSIS SERVICES

1. CONTRACTOR shall establish a special database that identifies the name, address and quarterly allocations of all sales tax producers within the CITY for the most current and all quarters back to fiscal year 1991-1992 or earlier, if the CITY has prior historical sales tax data available on computer readable magnetic media. This database will be utilized to generate special reports to the CITY on: major sales tax producers by rank and category, sales tax activity by categories, or business districts, identification of reporting aberrations, and per capita and outlet comparisons with regional and statewide sales.

2. CONTRACTOR shall provide updated reports following each calendar quarter identifying changes in sales by individual businesses, business groups and categories and by geographic area. These reports may include, without limitation, quarterly aberrations due to State audits, fund transfers, and receivables along with late or double payments, and quarterly reconciliation worksheets to assist with budget forecasting.

CONTRACTOR shall meet quarterly with CITY.

3. CONTRACTOR shall additionally provide following each calendar quarter a summary analysis for the CITY to share with Council Members Chambers of Commerce, other economic development interest groups and the public that analyze CITY’S sales tax trends by major groups, and geographic areas without disclosing confidential information.

4. CONTRACTOR shall make available to CITY staff CONTRACTOR’s web-based sales tax computer software program containing sellers permit and quarterly allocation information for all in-city business outlets registered with the Department of Tax and Fee Administration and updated quarterly. This software shall allow CITY staff to search businesses by street address, account number, business name, business type and keyword, arrange data by geographic area, and print out a variety of reports.

B. ALLOCATION AUDIT AND RECOVERY SERVICES

1. CONTRACTOR shall conduct initial and on-going sales, use and transactions tax audits to identify and correct distribution and allocation errors, and to proactively affect favorable registration, reporting or formula changes thereby generating previously unrealized sales, use and transactions tax income for the CITY and/or recovering misallocated tax from previously properly registered taxpayers. Common errors that will be monitored and corrected include, but are not limited to: transposition errors resulting in misallocations; erroneous consolidation of multiple outlets; formula errors, misreporting of “point of sale” to the wrong location; delays in reporting new outlets; misallocating use tax payments to the allocation pools or wrong jurisdiction; and erroneous fund transfers and adjustments.

PGCC 6-18-25