Agenda packet — Pacific Grove City Council, June 18, 2025 (part 1 of 3)

CITY COUNCIL

SPECIAL MEETING AGENDA
Wednesday, June 18, 2025, 5:00 P.M.

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

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

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

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

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

AGENDA

CALL TO ORDER

SPECIAL MEETING

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

A. Conference with Real Property Negotiators (Government Code § 54956.8) Property: 77 Asilomar, Pacific Grove (Pacific Grove Golf Links) Agency Negotiator(s): Matthew Mogensen, City Manager and Nick Cina, Management Analyst Negotiating Party(ies): Michael Sharp, PGA, President/CEO, CourseCo Inc.

Under negotiation: Price and terms of payment
B. A. Conference with Real Property Negotiators (Government Code § 54956.8) PGCC 6-18-25

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B. A. Conference with Real Property Negotiators (Government Code § 54956.8) Property: 79 Asilomar (Point Pinos Grill)
Agency Negotiator(s): Matthew Mogensen, City Manager and Nick Cina, Management Analyst Negotiating Party(ies): Tamie Aceves, owner, La Crème Hospitality, Inc.

Under negotiation: Price and terms of payment

1. Written Public Comment

ADJOURNMENT
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CITY COUNCIL

REGULAR MEETING AGENDA
Wednesday, June 18, 2025, 6:00 P.M.

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

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

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

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

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

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

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

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

AGENDA

CALL TO ORDER
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PLEDGE OF ALLEGIANCE: Councilmember Walkingstick

1. APPROVAL OF AGENDA

2. PRESENTATIONS

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

4. GENERAL PUBLIC COMMENT
General Public Comment must deal with matters subject to the jurisdiction of the City and the Council that are not on the Regular Agenda. This is the appropriate place to comment as to items on the Consent Agenda, only if you do not wish to have the item pulled for individual consideration by the Council.

Comments from the public will be limited to three minutes and will not receive Council action. Comments regarding items on the Regular Agenda shall be heard prior to Council’s consideration of such items at the time such items are called. Whenever possible, written correspondence should be submitted to the Council in advance of the meeting, to provide adequate time for its consideration.

A. Written General Public Comment

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

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business A. Minutes of the City Council June 4, 2025 Special and Regular Meetings PG 9 Reference: Sandra Kandell, City Clerk
Recommended Action: Approve minutes.

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

6. RESOLUTIONS
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6. RESOLUTIONS
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business
A. Resolution Setting the Appropriations Limit for FY 2025-2026 PG 17 Reference: Fred Marsh, Administrative Services Director Recommended Action: Approve a resolution setting the Appropriations Limit for Fiscal Year 2024-2025
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

7. ORDINANCES
Items pulled from this section will be placed under 11. Public Hearings A. Second Reading of an Ordinance Amending the Salary Classification Schedule Reference: Leticia Livian, Human Resources Director PG 90 Recommended Action: Hold second reading and adopt an ordinance to amend the salary classification schedule and approve the amendment.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Second Reading of an Ordinance to Adopt the Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget PG 97
Reference: Fred Marsh, Administrative Services Director Recommended Action: Hold second reading of an ordinance to adopt the Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Second Reading of an Ordinance Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission PG 277
Reference: Matthew Mogensen, City Manager
Recommended Action: Hold second reading of an Ordinance of the City Council of the City of Pacific Grove Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission.

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

8. REPORTS – INFORMATION ONLY
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business
A. Check Register and Core Fund Summary - May 2025 PG 285 PGCC 6-18-25

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Reference: Nicholas Cina, Finance Management Analyst
Recommended Action:

1. Receive the Check Register and Core Fund Summary.

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

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

9. REPORTS – REQUIRING ACTION
Items pulled from this section will be placed under 12. Unfinished and Ongoing Business or 13. New Business A. Amended Agreement with HdL Companies for Sales Tax, Business Licenses, and TOT Collection and Compliance Services PG 295
Reference: Lori Frati, Finance Manager
Recommended Action: 1. Authorize the Mayor to amend 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.

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

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES Items pulled from this section will be placed under 13. New Business A. Historic Resources Committee Meeting Minutes: December 2024 through April 2025 Reference: Garrett McCown, Associate Planner PG 326
Recommended Action: Receive minutes.

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

REGULAR AGENDA

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

A. Consider Appeals of Coastal Development Permit (CDP) 25-0031, Recreation Trail PGCC 6-18-25

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A. Consider Appeals of Coastal Development Permit (CDP) 25-0031, Recreation Trail Realignment within the Ocean View Blvd Right-of-Way, Pacific Grove PG 349 Reference: Joseph Sidor, Contract Planner
Recommended Action: Staff recommends the City Council deny the appeals and approve Coastal Development Permit (CDP) 25-0031, subject to the findings, recommended conditions, and CEQA Class 1 and 2 categorical exemptions.

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities B. First reading of an Amendment to Cannabis Licensing Ordinance, Approval of Cannabis Administrative Regulations & Adoption of Cannabis License Application Fee PG 377 Reference: Matthew Mogensen, City Manager
Recommended Action:

Request the City Attorney to read the title of the Amendment to the Cannabis Licensing Ordinance.

1. 2. Motion to waive further reading of the ordinance.

Introduce and hold first reading of the Amendment to the Cannabis Licensing Ordinance.

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

4. Adopt the Resolution Approving the Application Procedures & Guidelines for Storefront Retail Commercial Cannabis Business License.

5. Adopt the Resolution Establishing the Application Fee for a Storefront Retail Commercial Cannabis Business License.

6. CEQA: Proposed Ordinance not subject to CEQA based on Guideline Sections: 15060(c)(3) and 15378; 15060(c)(2); 15061(b)(3); and 150308
C. First Reading of an Ordinance Repealing and Replacing PGMC Chapter 18.32.080 to adopt the 2025 Fire Hazard Severity Zone Map for the City as identified by the California State Fire Marshall in Accordance with Government Code Section 51178 PG 403 Reference: Matthew Mogensen, City Manager
Recommended Action:

1. Request the City Attorney to read the title of the Ordinance.

Motion to introduce an Ordinance Repealing and Replacing PGMC Chapter 18.32.080 to adopt the 2025 Fire Hazard Severity Zone Map for the City as identified by the California State Fire Marshall in Accordance with Government Code Section 511783.

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

3. 4. Other action related to this Agenda Item
CEQA: Statutory Exemption, CEQA Guidelines Section 15268, Ministerial Projects

12. UNFINISHED AND ONGOING BUSINESS

13. NEW BUSINESS
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14. FULL PRESENTATIONS

15. CLOSED SESSION
A. Conference with Labor Negotiators (Government Code § 54957.6) City designated representative: City Attorney
Employee: City Manager

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

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Agenda No. 5 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: June 18, 2025
SUBJECT: Minutes of the City Council June 4, 2025 Special and Regular Meetings.

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

RECOMMENDATION
Approve minutes.

Attachments
Draft Minutes 6-4-25
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1 DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

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

Council Chamber – City Hall – 300 Forest Avenue, Pacific Grove, CA Join the Zoom Meeting to participate live at:
https://www.cityofpacificgrove.org/Zoom_Closed

CALL TO ORDER
Mayor called the meeting to order at 5:00 p.m. Present in Chamber: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, and Rau. Absent: Councilmembers Poduri and Walkingstick. Councilmember Poduri arrived at approximately 5:05 p.m.

APPROVAL OF THE AGENDA
Action: Closed Session Agenda item B was incorrectly noticed and removed from the Closed Session Agenda.

Action: Upon motion by Mayor Pro Tem Amelio and seconded to Councilmember Rau, Council voted 5-0-2, Councilmembers Poduri and Walkingstick absent, to approve the agenda as amended removing item B from the Closed Session Agenda.

SPECIAL MEETING

PUBLIC COMMENT ON SPECIAL MEETING MATTERS
No public comment received.

A. Public Employment, (Government Code § 54957)
Title: City Manager Performance Evaluation
B. Conference with Labor Negotiators (Government Code Section 54957.6) This item removed from the Closed Session Agenda.

City Negotiators: Matthew Mogensen, City Manager, Fred Marsh, Administrative Services Director, Che Johnson, Esq. Liebert, Cassidy Whitmore Employee Organization: Police Officers Association

1. Written Public Comment
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2 DRAFT MEETING MINUTES

CITY OF PACIFIC GROVE

CITY COUNCIL

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

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

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

PLEDGE OF ALLEGIANCE:

Councilmember Garfield led the pledge of allegiance.

1. APPROVAL OF AGENDA
Upon motion by Councilmember Poduri and seconded by Mayor Pro Tem Amelio, Council voted 6-0-1, Councilmember Walkingstick absent, to approve the agenda.

2. PRESENTATIONS
A. Pride Month Proclamation
Action: Received the presentation.

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

3. COUNCIL AND STAFF ANNOUNCEMENTS (City-Related Items Only) A. Report on Closed Session by City Attorney
Public Employment, (Government Code § 54957)
Title: City Manager Performance Evaluation
City Attorney Brian Pierik reported no action taken as to the closed session agenda item.

B. Council and staff made general announcements.

4. GENERAL PUBLIC COMMENT
General Public Comment received from Mike Gibbs, unnamed speaker, Lisa Ciani, Vince Tuminello, and Inge Lorentzen Daumer.

A. Written General Public Comment

CONSENT AGENDA
Action: Consent Agenda item 6A and pulled and considered immediately following the Consent DRAFT PGCC 6-18-25

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3 Agenda.

Action: Consent Agenda items 8A and 9B were pulled and considered at the end of the Regular Agenda.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Poduri, Council voted 6-0-1, Councilmember Walkingstick absent, to approve the Consent Agenda as modified.

5. APPROVAL OF CITY COUNCIL MEETING MINUTES
A. Minutes of the City Council May 21, 2025 Regular Meeting Action: Approved the minutes.

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

6. RESOLUTIONS
A. GreenWaste FY 25/26 Rate Increase This item was pulled and considered immediately following the Consent Agenda.

Reference: George Fuerst, Environmental Programs Manager.

Recommended Action: Adopt a resolution affirming the accuracy of GreenWaste Recovery rate increase, per the franchise agreement, of 3.80% for FY 25/26.

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

7. ORDINANCES
A. Local Coastal Program Amendment - Coastal Hazards
Action: Held a second reading and adopted Ordinance No. 25-008 amending Pacific Grove Municipal Code Section 23.90.140(b); and directed City Staff to transmit the amendments to the California Coastal Commission for confirmation by the Coastal Commission at their next regular meeting and incorporation into the City’s Local Coastal Program.

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

8. REPORTS – INFORMATION ONLY
A. Housing Element Monthly Status Update This item was pulled and considered at the end of the Regular Agenda.

Reference: Joe Sidor, Contract Planner
Recommended Action: Receive the report.

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

9. REPORTS – REQUIRING ACTION
A. Monterey Regional Waste Management District MOU
Action: Authorized a Memorandum of Understanding (MOU) between Monterey Regional Waste Management District and the City regarding assistance with California Senate Bill 1383 compliance.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
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4 B. FY26/27 Extension with Topes Tree Service Inc. for Tree Maintenance Services in Public Right of Way This item was pulled and considered at the end of the Regular Agenda.

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

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

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

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Emergency removal and replacement of a manhole at Beach Street and Del Monte Action: Authorized the execution of an agreement with Monterey Peninsula Engineering for the emergency removal and replacement of a manhole at Beach Street and Del Monte Boulevard for a cost not to exceed $49,850 plus a 15% contingency.

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

10. MEETING MINUTES OF COMMISSIONS, BOARDS, AND COMMITTEES *****

6.A. GreenWaste FY 25/26 Rate Increase This item was pulled and considered immediately following the Consent Agenda.

Public comment was received from Inge Lorentzen Daumer.

Action: Upon motion by Councilmember Poduri and seconded by Mayor Pro Tem Amelio, Council voted to adopt Resolution No. 25-013 affirming the accuracy of GreenWaste Recovery rate increase, per the franchise agreement, of 3.80% for FY 25/26.

Motion carried 6-0-1 with the following roll-call vote:

AYES: Mayor Smith, Mayor Pro Tem Amelio, Councilmembers Garfield, McDonnell, Poduri, and Rau.

NOES: None.

ABSENT: Councilmember Walkingstick.

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

REGULAR AGENDA

11. PUBLIC HEARINGS
A. Ordinance Amending the Salary Classification Schedule No public comment received.

Action: Mayor Pro Tem Amelio requested the City Attorney read the title of the ordinance.

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5 Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted 6-0-1, Councilmember Walkingstick absent, to

2. Waive further reading of the ordinance;

3. Introduce and hold a first reading of an ordinance to amend the salary classification schedule; and approve the amendment; and

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

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
B. Ordinance to Adopt the Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget
No public comment received.

Action: Mayor Smith requested the City Attorney read the title of the ordinance.

Action: Upon motion by Mayor Smith and seconded by Mayor Pro Tem Amelio, Council voted 6-0-1, Councilmember Walkingstick absent, to

2. Waive further reading of the ordinance;

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

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

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. Consideration of Potential Ordinance of the City Council of the City of Pacific Grove Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission
Public comment received from Antony Tersol.

Action: Council discussed potential Ordinance of the City Council of the City of Pacific Grove Repealing Chapter 3.40 of the Pacific Grove Municipal Code on the Economic Development Commission.

Action: Mayor Pro Tem Amelio requested the City Attorney read the title of the ordinance.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Mayor Smith, the Council voted 6-0-1, Councilmember Walkingstick absent, to

2. Waive further reading of the ordinance;

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

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

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6 Section 15378

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

Public comment received from Sally Moore, Carmelita Garcia, and Inge Lorentzen Daumer.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted 6-0-1, Councilmember Walkingstick absent, to

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

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

CEQA: Categorical Exemption, CEQA Guidelines Section 15301, Class I, Existing Facilities
B. Housing Element Monthly Status Update This item was pulled from the Consent Agenda.

Public comment received from Jane Haines.

Action: Council received the report.

CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378
C. FY26/27 Extension with Topes Tree Service Inc. for Tree Maintenance Services in Public Right of Way This item was pulled from the Consent Agenda.

Public comment received from Carmelita Garcia and Inge Lorentzen Daumer.

Action: Upon motion by Mayor Pro Tem Amelio and seconded by Councilmember Rau, Council voted 6-0-1, Councilmember Walkingstick absent, to authorize FY26/27 extension with Topes Tree Service Inc. to provide Tree Maintenance Services for trees in the public right-of-way and on City-owned properties in an amount not to exceed $250,000.

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

13. NEW BUSINESS

14. FULL PRESENTATIONS

15. CLOSED SESSION
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7 ADJOURNMENT
Council adjourned the regular meeting at 7:54 p.m.

Respectfully Submitted,
Sandra Kandell
City Clerk
Approved by Mayor: _______________________________Date________________ Attest by City Manager: ____________________________Date_________________ DRAFT PGCC 6-18-25

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Agenda No. 6 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Fred Marsh, Administrative Services Director
MEETING DATE: June 18, 2025
SUBJECT: Resolution Setting the Appropriations Limit for FY 2025-2026 CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Approve a resolution setting the Appropriations Limit for Fiscal Year 2024-2025

DISCUSSION
Article XIII B of the California Constitution requires cities to adopt an annual Appropriations Limit, based on population and economic growth factors, as prescribed by State law. Staff has calculated the Appropriations Limit for FY 2025-2026 and recommends that Council adopt a resolution establishing the limit at $53,132,095. Estimated City tax revenue appropriations subject to the limit total $27,861,900, indicating that the City is not at risk of exceeding its limit.

California’s State Appropriations Limit places a “ceiling” each year on the amount of monies that can be spent from local government tax proceeds. Most appropriations are subject to the Appropriations Limit, however, the law does allow exemptions for capital outlay, debt service, and subventions. Tax proceeds in excess of the Limit over a two-year period must be rebated to taxpayers.

The adoption of Proposition 4 in 1979 and amended by Proposition 98 in 1998 and Proposition 111 in 1990 established the requirement and procedure for establishing an Appropriations Limit for local agencies. In brief, the amount of revenue that the City is annually authorized to appropriate is limited by factors relating to changes in population and the economy. The population factor selected may either be the higher of the rate of change in population for the City or for the County. The economic factor selected is the change in California’s per capita. The value determined by the formula set forth above is then applied to the previous year’s Limit to yield the new Appropriations Limit for the fiscal year.

Data on the change in California per capita income, county population, and city population for use in the calculation are provided by the State Department of Finance. Section 65009(b)(2) of the California Government Code provides that legal challenges to the City’s action on this proposed matter shall be limited to issues raised in testimony during the public hearing process. In the review of this matter, the City has followed those guidelines adopted by the State of California and published in the California Administrative Code, Title 14, Section 15000, et seq.

OPTIONS
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Approve a resolution setting the Appropriations Limit for Fiscal Year 2025-2026.

Provide alternate direction.

FINANCIAL IMPACT:

There is no fiscal impact from the adoption of this report.

FOCUSED PRIORITY AREA: Financial Sustainability
Attachments
5 Gann Limit Resolution
Department of Finance Gann Limit Factors
Gann Limit Calculation
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RESOLUTION NO. 25-

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

FINDINGS

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

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

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

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

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

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

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

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

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

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

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

AYES:

NOES:

ABSENT:

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April 30, 2024
Dear Fiscal Officer:

Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments.

Each local jurisdiction must use their percentage change in population factor for January 1, 2024, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2024-25. Attachment A provides the change in California’s per capita personal income and an example for utilizing the factors to calculate the 2024-25 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2024. Please note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
/s Richard Gillihan

RICHARD GILLIHAN
Chief Operating Officer
Attachment
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May 2024
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2024-25 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2024-25 3.62
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2024-25 appropriation limit.
2024-25:

Per Capita Cost of Living Change = 3.62 percent
Population Change = 0.17 percent
Per Capita Cost of Living converted to a ratio: 3.62 + 100 = 1.0362 100
Population converted to a ratio: 0.17 + 100 = 1.0017
100
Calculation of factor for FY 2024-25: 1.0362 x 1.0017 = 1.0379

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Alameda
Alameda 1.21 76,309 77,234 78,071
Albany -0.14 20,354 20,325 20,325
Berkeley 0.12 125,181 125,327 125,327
Dublin -0.03 71,600 71,575 72,917
Emeryville 4.95 12,686 13,314 13,314
Fremont -0.63 230,713 229,250 229,250
Hayward -0.58 160,699 159,770 159,770
Livermore -0.48 85,235 84,828 84,828
Newark -2.36 47,762 46,635 46,635
Oakland -0.52 427,085 424,873 425,093
Piedmont -0.88 10,878 10,782 10,782
Pleasanton -1.17 76,861 75,960 75,960
San Leandro -1.01 87,984 87,098 87,098
Union City -1.26 67,279 66,432 66,432
Unincorporated -1.18 147,743 146,006 146,067
County Total -0.54 1,648,369 1,639,409 1,641,869
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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1.42 -0.13
-0.77

2.85 0.71

3.74 1.81

1.04 0.55

0.67 -0.10

1.09 0.27
-0.11
-0.10

0.06 124,361
13,291
8,480
7,163
542,600
6,119
16,950
12,908
12,462
9,453
14,382
25,376
26,286
3,620
24,395
157,158
126,133
13,274
8,415
7,367
546,467
6,348
17,256
13,042
12,531
9,516
14,368
25,653
26,357
3,616
24,371
157,254
126,133
17,107
8,415
7,367
546,971
6,348
17,256
13,042
12,531
9,516
14,368
25,653
26,357
3,616
24,371
158,380
County Total 0.69 1,005,004 1,011,968 1,017,431
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 County
City
Percent Change
23-24
--- Population Minus Exclusions ---
1-1-23 1-1-24
Total
Population
1-1-24
Humboldt
Arcata
Blue Lake
Eureka
Ferndale
Fortuna
Rio Dell
Trinidad
Unincorporated
-1.54
-1.29
-0.80
-1.45
-1.11
-1.49
-1.34
-1.07
18,830
1,164
26,116
1,376
12,318
3,290
298
70,959
18,540
1,149
25,906
1,356
12,181
3,241
294
70,199
18,540
1,149
26,073
1,356
12,181
3,241
294
70,266
County Total -1.11 134,351 132,866 133,100
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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2.58 1.70

4.60 1.37

1.27 2.59

2.86 1.65
27,633
38,606
6,063
44,305
5,513
21,583
1,993
30,586
28,345
39,262
6,342
44,911
5,583
22,141
2,050
31,091
28,345
39,262
6,342
44,952
5,583
22,141
2,050
34,206
County Total 1.95 176,282 179,725 182,881
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.98 0.80

0.60 0.96

0.00 1.45

0.75 4.31

0.13 0.48

1.35 0.39
19,460
407,835
13,001
45,119
1,004
13,765
27,098
21,266
6,944
9,297
22,945
300,172
19,651
411,109
13,079
45,554
1,004
13,965
27,300
22,183
6,953
9,342
23,254
301,340
19,651
411,109
13,079
52,484
1,004
13,965
27,940
22,226
6,953
11,092
27,028
303,769
County Total 0.77 887,906 894,734 910,300
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
Los Angeles
Agoura Hills -0.44 19,928 19,841 19,841
Alhambra 0.05 81,753 81,790 81,811
Arcadia -0.13 55,855 55,783 55,783
Artesia -0.21 16,053 16,019 16,019
Avalon -0.57 3,332 3,313 3,313
Azusa -0.35 49,595 49,420 49,420
Baldwin Park -0.06 70,700 70,660 70,660
Bell -0.34 33,414 33,301 33,301
Bellflower -0.03 77,014 76,990 76,990
Bell Gardens -0.49 38,569 38,381 38,381
Beverly Hills -0.45 31,950 31,806 31,806
Bradbury -0.77 905 898 898
Burbank 0.11 105,484 105,603 105,603
Calabasas -0.50 22,857 22,742 22,742
Carson -0.52 92,399 91,920 91,924
Cerritos -0.53 48,063 47,806 47,806
Claremont 0.03 37,673 37,686 37,686
Commerce 0.57 12,055 12,124 12,124
Compton -0.37 94,016 93,671 93,671
Covina 0.19 50,390 50,485 50,485
Cudahy -0.52 22,327 22,210 22,210
Culver City 0.89 39,859 40,213 40,213
Diamond Bar -0.43 53,566 53,335 53,335
Downey -0.15 111,656 111,493 111,493
Duarte 3.04 22,958 23,656 23,656
El Monte 0.08 106,649 106,738 106,786
El Segundo -0.08 16,953 16,939 16,964
Gardena 0.22 59,896 60,028 60,028
Glendale -0.25 192,072 191,586 191,586
Glendora -0.32 51,374 51,209 51,209
Hawaiian Gardens -0.29 13,600 13,560 13,560
Hawthorne -0.37 85,886 85,566 85,566
Hermosa Beach -0.42 19,169 19,088 19,088
Hidden Hills 0.17 1,724 1,727 1,727
Huntington Park -0.31 53,374 53,209 53,219
Industry -0.23 427 426 426
Inglewood -0.53 106,628 106,065 106,065
Irwindale 0.74 1,488 1,499 1,499
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
La Canada Flintridge -0.20 20,089 20,048 20,048
La Habra Heights -0.45 5,513 5,488 5,488
Lakewood -0.25 80,365 80,162 80,162
La Mirada -0.40 48,271 48,077 48,077
Lancaster -0.10 169,939 169,776 172,631
La Puente -0.19 37,530 37,459 37,459
La Verne 0.06 31,678 31,697 31,697
Lawndale -0.55 31,026 30,855 30,855
Lomita -0.38 20,397 20,320 20,320
Long Beach -0.18 459,315 458,498 458,813
Los Angeles 0.27 3,800,438 3,810,548 3,814,318
Lynwood -0.23 66,424 66,271 66,271
Malibu -0.18 10,640 10,621 10,621
Manhattan Beach -0.50 34,367 34,195 34,195
Maywood -0.49 24,572 24,451 24,451
Monrovia 1.39 37,563 38,087 38,087
Montebello 0.32 61,730 61,930 61,930
Monterey Park -0.42 59,592 59,340 59,347
Norwalk -0.39 100,732 100,341 101,172
Palmdale -0.02 166,089 166,055 166,055
Palos Verdes Estates -0.44 13,031 12,974 12,974
Paramount -0.34 52,331 52,153 52,153
Pasadena 1.09 138,187 139,692 139,692
Pico Rivera -0.32 61,014 60,820 60,820
Pomona 0.68 151,132 152,166 152,166
Rancho Palos Verdes -0.50 41,106 40,902 40,919
Redondo Beach -0.27 68,424 68,239 68,239
Rolling Hills -0.53 1,686 1,677 1,677
Rolling Hills Estates 0.46 8,495 8,534 8,534
Rosemead 0.08 50,503 50,541 50,541
San Dimas -0.31 34,027 33,920 33,920
San Fernando 0.04 23,633 23,643 23,643
San Gabriel -0.09 38,648 38,613 38,613
San Marino 0.23 12,350 12,379 12,379
Santa Clarita -0.27 231,045 230,428 230,428
Santa Fe Springs -0.34 18,574 18,511 18,640
Santa Monica 0.34 92,598 92,912 92,912
Sierra Madre -0.15 10,925 10,909 10,909
Signal Hill -0.35 11,488 11,448 11,448
South El Monte -0.21 19,482 19,441 19,441
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.03 -0.37
-0.18
-0.36
-0.49
92,701
26,367
36,040
143,433
206
92,729
26,270
35,975
142,910
205
92,729
26,270
35,975
142,910
205
Walnut
West Covina
West Hollywood
Westlake Village
Whittier
Unincorporated
-0.10

0.65 -0.44
-0.45

0.22 -0.19
27,896
108,404
35,229
7,938
87,333
998,818
27,867
109,105
35,075
7,902
87,527
996,956
27,867
109,105
35,075
7,902
87,527
997,587
County Total 0.05 9,810,925 9,815,428 9,824,091
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.13 -0.44
-1.08
-0.26
-0.14
-0.45
-0.55
-0.36
-0.45
2,046
9,916
7,399
12,638
13,695
51,415
2,278
12,443
59,855
6,894
8,841
62,940
2,043
9,872
7,371
12,655
13,635
50,861
2,272
12,426
59,585
6,856
8,809
62,656
2,043
9,882
7,371
12,655
13,635
51,140
2,272
12,426
59,585
6,856
8,809
66,170
County Total -0.53 250,360 249,041 252,844
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Merced
Atwater 0.02 31,390 31,397 31,397
Dos Palos -0.02 5,634 5,633 5,633
Gustine -0.07 5,940 5,936 5,936
Livingston 0.09 14,273 14,286 14,286
Los Banos 0.25 47,300 47,419 47,419
Merced 1.91 90,120 91,837 91,837
Unincorporated 0.23 89,424 89,630 90,795
County Total 0.72 284,081 286,138 287,303
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.55 0.64

0.98 2.01

1.78 1.91

0.56 0.63

0.73 0.26

0.04 2.94

0.75 3,105
1,559
8,384
20,155
13,968
22,269
24,096
14,872
160,870
378
28,075
19,565
104,372
3,122
1,569
8,466
20,561
14,216
22,695
24,232
14,966
162,037
379
28,085
20,140
105,157
3,122
1,569
8,466
20,561
14,216
22,695
27,106
14,966
162,037
379
30,197
26,966
105,334
County Total 0.94 421,668 425,625 437,614
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
Orange
Aliso Viejo -0.43 50,284 50,068 50,068
Anaheim 0.29 339,105 340,090 340,160
Brea -0.34 47,886 47,725 47,725
Buena Park 0.07 82,632 82,689 82,689
Costa Mesa -0.31 109,765 109,423 109,423
Cypress 0.11 49,291 49,345 49,345
Dana Point -0.38 32,721 32,596 32,596
Fountain Valley 0.18 56,233 56,333 56,333
Fullerton -0.32 140,756 140,311 140,311
Garden Grove 1.17 169,024 171,002 171,024
Huntington Beach -0.30 193,078 192,503 192,503
Irvine 0.97 311,537 314,550 314,550
Laguna Beach 0.07 22,433 22,449 22,449
Laguna Hills -0.42 30,442 30,315 30,315
Laguna Niguel 0.67 63,865 64,291 64,291
Laguna Woods -0.43 17,222 17,148 17,148
La Habra -0.21 61,028 60,901 60,901
Lake Forest 0.70 86,311 86,917 86,917
La Palma -0.40 15,131 15,071 15,071
Los Alamitos -0.19 11,970 11,947 11,947
Mission Viejo 0.09 91,221 91,304 91,304
Newport Beach -0.35 82,707 82,419 82,419
Orange -0.16 138,842 138,621 138,621
Placentia 0.08 52,182 52,226 52,226
Rancho Santa Margarita -0.43 46,507 46,305 46,305
San Clemente -0.29 62,481 62,297 62,297
San Juan Capistrano 1.05 34,627 34,992 34,992
Santa Ana 0.89 308,041 310,797 310,797
Seal Beach -0.37 24,200 24,110 24,350
Stanton 3.55 38,914 40,297 40,297
Tustin 0.42 78,515 78,844 78,844
Villa Park -0.19 5,716 5,705 5,705
Westminster 0.10 89,400 89,490 89,490
Yorba Linda -0.27 66,268 66,087 66,087
Unincorporated 0.72 130,381 131,325 131,335
County Total 0.31 3,140,716 3,150,493 3,150,835
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Placer
Auburn -0.94 13,344 13,218 13,218
Colfax -1.09 2,010 1,988 1,988
Lincoln 1.79 52,296 53,231 53,231
Loomis 0.06 6,597 6,601 6,601
Rocklin 0.26 71,420 71,609 71,609
Roseville 1.05 152,726 154,329 154,329
Unincorporated 0.16 111,692 111,868 111,868
County Total 0.67 410,085 412,844 412,844
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
Riverside
Banning 0.54 31,046 31,213 31,213
Beaumont 2.03 56,275 57,416 57,416
Blythe -0.33 12,566 12,524 17,378
Calimesa -0.39 10,909 10,867 10,867
Canyon Lake -0.13 10,846 10,832 10,832
Cathedral City -0.27 51,012 50,873 50,911
Coachella 2.36 42,179 43,173 43,173
Corona 0.22 156,268 156,615 156,615
Desert Hot Springs 0.85 32,380 32,654 32,654
Eastvale -0.35 69,123 68,884 68,884
Hemet 0.37 89,333 89,663 89,663
Indian Wells 1.35 4,733 4,797 4,797
Indio 0.78 89,978 90,680 90,680
Jurupa Valley 0.12 104,541 104,663 104,721
Lake Elsinore 0.14 71,351 71,452 71,452
La Quinta 1.44 37,824 38,370 38,370
Menifee 1.97 109,401 111,560 111,560
Moreno Valley 0.12 206,903 207,146 207,146
Murrieta -0.17 109,364 109,177 109,177
Norco -0.15 22,084 22,050 25,068
Palm Desert 1.22 50,274 50,889 50,889
Palm Springs -0.03 43,802 43,791 43,791
Perris 1.13 78,424 79,311 79,311
Rancho Mirage 0.74 16,868 16,992 16,992
Riverside 0.30 315,747 316,690 316,690
San Jacinto -0.39 53,746 53,538 53,538
Temecula 0.49 108,173 108,700 108,700
Wildomar 0.65 36,093 36,327 36,327
Unincorporated 0.95 399,653 403,438 403,563
County Total 0.55 2,420,896 2,434,285 2,442,378
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Sacramento
Citrus Heights -0.58 86,056 85,554 85,554
Elk Grove 0.69 177,446 178,679 178,679
Folsom 2.41 81,478 83,443 88,023
Galt 0.69 25,608 25,785 25,785
Isleton -0.65 772 767 767
Rancho Cordova 0.62 81,604 82,109 82,109
Sacramento 0.18 519,466 520,407 520,407
Unincorporated -0.40 599,989 597,614 597,614
County Total 0.12 1,572,419 1,574,358 1,578,938
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
San Bernardino
Adelanto -0.80 36,422 36,131 36,131
Apple Valley -0.24 74,500 74,322 74,322
Barstow -0.34 24,124 24,043 24,669
Big Bear Lake 0.20 4,948 4,958 4,958
Chino 0.57 88,580 89,088 92,585
Chino Hills -0.17 76,547 76,414 76,414
Colton -0.12 52,841 52,778 52,778
Fontana 0.68 212,772 214,223 214,223
Grand Terrace -0.17 12,793 12,771 12,771
Hesperia 0.75 99,338 100,087 100,087
Highland 0.12 55,612 55,676 55,676
Loma Linda -0.02 24,923 24,919 24,965
Montclair -0.09 37,246 37,211 37,211
Needles -0.23 4,780 4,769 4,769
Ontario 0.93 179,555 181,224 181,224
Rancho Cucamonga 0.56 172,344 173,316 173,316
Redlands 1.28 71,776 72,696 72,696
Rialto 0.71 102,367 103,097 103,097
San Bernardino 0.39 224,316 225,188 226,541
Twentynine Palms -1.12 15,397 15,224 25,346
Upland 0.56 77,849 78,285 78,285
Victorville 0.96 132,537 133,805 138,202
Yucaipa 0.33 53,635 53,810 53,810
Yucca Valley 0.40 21,509 21,594 21,594
Unincorporated 0.02 286,864 286,926 295,763
County Total 0.42 2,143,575 2,152,555 2,181,433
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.07 5.39

0.50 2.67

0.10 0.48

1.33 0.29
7,244
35,138
66,164
88,552
15,726
315,655
95,341
157,407
7,249
37,033
66,492
90,917
15,741
317,174
96,609
157,866
7,249
37,033
66,492
90,917
15,741
317,204
96,609
160,163
County Total 1.01 781,227 789,081 791,408
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.37 -0.49
-0.52
-0.29

0.90 -0.42
18,039
29,278
30,792
12,542
10,315
7,869
48,249
118,457
17,941
29,233
30,907
12,481
10,261
7,846
48,684
117,954
17,941
30,279
30,907
12,481
10,261
7,846
48,684
120,070
County Total -0.08 275,541 275,307 278,469
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.04 0.08

0.04 1.10
-0.06

0.35 0.84

0.05 -0.07
4,968
12,734
32,503
8,582
40,571
85,362
109,687
5,660
136,235
4,970
12,744
32,515
8,676
40,545
85,659
110,608
5,663
136,144
4,970
12,744
32,515
8,676
43,610
85,679
110,608
5,663
139,158
County Total 0.28 436,302 437,524 443,623
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.80 -0.19
-0.01
-0.41

0.17 0.51

0.11 2.45
-0.21
-0.13
-0.26
-0.08

0.24 -0.53
43,191
59,656
60,419
31,316
8,477
33,368
81,635
3,564
46,333
84,463
68,093
970,772
132,386
30,845
157,187
90,063
43,095
59,471
60,904
31,255
8,476
33,230
81,773
3,582
46,384
86,535
67,953
969,491
132,048
30,819
157,566
89,584
43,095
59,471
61,033
31,255
8,476
33,230
81,773
3,582
46,384
86,535
67,973
969,491
132,048
30,819
157,566
90,467
County Total 0.02 1,901,768 1,902,166 1,903,198
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.67 -0.19
-0.18
838
1,658
667
676
1,202
3,211
872
2,692
7,820
23,794
836
1,651
665
674
1,199
3,203
870
2,710
7,805
23,750
836
1,651
665
674
1,199
3,203
870
2,710
7,805
23,796
County Total -0.15 43,430 43,363 43,409
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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1.80 0.32

0.35 1.04

0.10 -0.54
-0.52
26,255
19,060
115,266
9,969
28,543
96,096
122,220
17,392
26,033
19,403
115,632
10,004
28,840
96,192
121,558
17,301
26,033
19,403
120,339
10,004
28,840
102,173
121,558
18,076
County Total 0.04 434,801 434,963 446,426
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 County
City
Percent Change
23-24
--- Population Minus Exclusions ---
1-1-23 1-1-24
Total
Population
1-1-24
Sonoma
Cloverdale
Cotati
Healdsburg
Petaluma
Rohnert Park
Santa Rosa
Sebastopol
Sonoma
Windsor
Unincorporated
-1.11
-1.06
-0.32
-0.02
-0.04
-0.07
-0.96
-0.98
-0.91
-0.40
8,808
7,381
11,020
58,457
43,838
175,013
7,366
10,636
25,628
130,333
8,710
7,303
10,985
58,445
43,821
174,890
7,295
10,532
25,394
129,812
8,710
7,303
10,985
58,445
43,821
174,890
7,295
10,532
25,394
130,777
County Total -0.27 478,480 477,187 478,152
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.58 2.28

0.52 0.15

0.29 1.49

1.59 0.55

0.08 0.16
49,035
7,539
216,734
12,103
22,942
24,426
24,614
70,885
9,103
108,372
49,319
7,711
217,862
12,121
23,008
24,790
25,006
71,273
9,110
108,544
49,319
7,711
217,862
12,121
23,008
24,790
25,006
71,273
9,110
108,544
County Total 0.55 545,753 548,744 548,744
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.45 0.08

1.78 1.07

0.70 1.77

1.10 0.17

0.42 25,458
10,171
10,146
12,461
62,320
69,565
142,821
7,700
133,652
25,573
10,179
10,327
12,594
62,758
70,799
144,385
7,713
134,219
25,573
10,179
10,327
12,594
62,934
70,799
144,532
7,713
134,267
County Total 0.90 474,294 478,547 478,918
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.57 -0.49
-0.05
-0.10
-0.69
-0.20
-0.14
-0.11
-0.38
-0.44
69,256
16,965
35,286
7,537
197,737
19,168
107,723
31,400
124,165
123,111
89,813
69,014
17,061
35,114
7,533
197,536
19,036
107,512
31,355
124,029
122,643
89,421
69,014
17,061
35,114
7,533
197,536
20,916
107,569
31,355
124,029
122,643
91,093
County Total -0.23 822,161 820,254 823,863
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Alameda
Incorporated
County Total
-0.48
-0.54
1,500,626
1,648,369
1,493,403
1,639,409
Alpine
Incorporated
County Total

0.00 -0.34
0 1,183
0 1,179
Amador
Incorporated
County Total
-0.80
-0.89
13,813
36,091
13,703
35,770
Butte
Incorporated
County Total

1.61 -0.32
144,871
206,579
147,197
205,928
Calaveras
Incorporated
County Total
-0.47
-0.15
3,604
44,853
3,587
44,786
Colusa
Incorporated
County Total
-0.18
-0.40
11,997
21,831
11,975
21,743
Contra Costa
Incorporated
County Total

0.11 0.12
971,251
1,145,274
972,337
1,146,626
Del Norte
Incorporated
County Total

0.52 -0.08
4,019
24,787
4,040
24,768
El Dorado
Incorporated
County Total

0.32 0.26
31,220
187,974
31,320
188,463
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.81 0.69
847,846
1,005,004
854,714
1,011,968
Glenn
Incorporated
County Total

2.77 1.43
14,458
28,330
14,858
28,736
Humboldt
Incorporated
County Total
-1.14
-1.11
63,392
134,351
62,667
132,866
Imperial
Incorporated
County Total

2.02 1.95
145,696
176,282
148,634
179,725
Inyo
Incorporated
County Total
-0.13
-0.16
3,853
18,826
3,848
18,796
Kern
Incorporated
County Total

0.96 0.77
587,734
887,906
593,394
894,734
Kings
Incorporated
County Total

0.15 0.04
108,741
133,516
108,903
133,575
Lake
Incorporated
County Total

0.90 0.47
21,343
66,619
21,535
66,933
Lassen
Incorporated
County Total
-0.22
-0.08
9,355
24,305
9,334
24,286
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.07 0.05
8,812,107
9,810,925
8,818,472
9,815,428
Madera
Incorporated
County Total

0.28 0.79
79,869
152,734
80,096
153,934
Marin
Incorporated
County Total
-0.55
-0.53
187,420
250,360
186,385
249,041
Mariposa
Incorporated
County Total

0.00 -0.04
0 16,912
0 16,905
Mendocino
Incorporated
County Total

0.27 -0.08
28,485
89,496
28,562
89,424
Merced
Incorporated
County Total

0.95 0.72
194,657
284,081
196,508
286,138
Modoc
Incorporated
County Total
-0.19
-0.20
2,664
8,501
2,659
8,484
Mono
Incorporated
County Total
-2.67
-2.53
7,305
13,097
7,110
12,765
Monterey
Incorporated
County Total

1.00 0.94
317,296
421,668
320,468
425,625
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.47 0.38
111,044
132,816
111,570
133,324
Nevada
Incorporated
County Total
-0.01
-0.30
33,530
100,421
33,525
100,115
Orange
Incorporated
County Total

0.29 0.31
3,010,335
3,140,716
3,019,168
3,150,493
Placer
Incorporated
County Total

0.87 0.67
298,393
410,085
300,976
412,844
Plumas
Incorporated
County Total
-1.14
-0.80
2,099
18,993
2,075
18,841
Riverside
Incorporated
County Total

0.48 0.55
2,021,243
2,420,896
2,030,847
2,434,285
Sacramento
Incorporated
County Total

0.44 0.12
972,430
1,572,419
976,744
1,574,358
San Benito
Incorporated
County Total

0.73 1.06
44,579
65,165
44,904
65,853
San Bernardino
Incorporated
County Total

0.48 0.42
1,856,711
2,143,575
1,865,629
2,152,555
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.03 0.07
2,756,900
3,235,324
2,757,771
3,237,699
San Francisco
Incorporated
County Total

0.11 0.11
841,745
841,745
842,644
842,644
San Joaquin
Incorporated
County Total

1.19 1.01
623,820
781,227
631,215
789,081
San Luis Obispo
Incorporated
County Total

0.17 -0.08
157,084
275,541
157,353
275,307
San Mateo
Incorporated
County Total
-0.49
-0.50
683,226
745,168
679,897
741,435
Santa Barbara
Incorporated
County Total

0.44 0.28
300,067
436,302
301,380
437,524
Santa Clara
Incorporated
County Total

0.05 0.02
1,811,705
1,901,768
1,812,582
1,902,166
Santa Cruz
Incorporated
County Total
-0.04
-0.29
135,179
263,282
135,121
262,509
Shasta
Incorporated
County Total

0.18 0.05
113,195
178,923
113,397
179,019
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Sierra
Incorporated
County Total
-0.41
-0.50
727
3,187
724
3,171
Siskiyou
Incorporated
County Total
-0.12
-0.15
19,636
43,430
19,613
43,363
Solano
Incorporated
County Total

0.06 0.04
417,409
434,801
417,662
434,963
Sonoma
Incorporated
County Total
-0.22
-0.27
348,147
478,480
347,375
477,187
Stanislaus
Incorporated
County Total

0.64 0.55
437,381
545,753
440,200
548,744
Sutter
Incorporated
County Total

1.90 1.90
78,432
98,248
79,924
100,110
Tehama
Incorporated
County Total
-0.50
-0.61
22,913
64,578
22,798
64,182
Trinity
Incorporated
County Total

0.00 -0.11
0 15,878
0 15,860
Tulare
Incorporated
County Total

1.08 0.90
340,642
474,294
344,328
478,547
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change --- Population Minus Exclusions --- 23-24 1-1-23 1-1-24
Tuolumne
Incorporated 0.25 5,119 5,132
County Total -0.11 52,207 52,148
Ventura
Incorporated -0.21 732,348 730,833
County Total -0.23 822,161 820,254
Yolo
Incorporated 0.44 186,763 187,591
County Total 0.55 220,454 221,666
Yuba
Incorporated 0.93 16,492 16,645
County Total 1.25 80,672 81,679
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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

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

The City’s applicable budgeted revenues and appropriations limit are shown below. The calculations below show that the City is well below the limit, as has been the case during the past six fiscal years. $39.1 $40.4 $42.7 $45.6 $47.7 $49.8 $53.1
$20.2 $16.8 $19.3 $22.6 $24.3 $25.7 $27.9
2020 2021 2022 2023 2024 2025 2026 In Millions
City Appropriation Appropriations Limit Analysis
Appropriations Limit Budgeted Tax Revenues
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Agenda No. 7 A

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Leticia Livian, Human Resources Director
MEETING DATE: June 18, 2025
SUBJECT: Second Reading of an Ordinance Amending the Salary Classification Schedule CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Hold second reading and adopt an ordinance to amend the salary classification schedule and approve the amendment.

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.

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

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

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

As part of the agreement, a compensation study will be conducted during FY 25/26 to evaluate total compensation for POA classifications. Based on the results of this study, a market adjustment may be considered if it is determined that POA classifications are more than 3% below 95% of the market median in total compensation. As of the date of this report, the outcome of the market analysis and PGCC 6-18-25

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subsequent discussions have not been finalized. Accordingly, the 3% COLA will be implemented as scheduled. Should a market adjustment be warranted, it will be applied retroactively to the first full pay period in July 2025.

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

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

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

OPTIONS
Provide alternative direction to staff.

FINANCIAL IMPACT:

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

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

Attachments
Ordinance
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ORDINANCE NO. 25-________

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

AMENDING THE CLASSIFICATION SCHEDULE
Findings

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

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

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

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

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

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

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

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

8. In the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq. Enactment of this ordinance action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment pursuant Section 15378.

Ordinance

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

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SECTION 1. The foregoing findings of the City Council are incorporated into this Ordinance as if set forth in full.

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

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

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

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

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

AYES:

NOES:

ABSENT:

APPROVED:
________________________
NICK SMITH, Mayor
ATTEST:
_________________________________
SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:
_________________________________
BRIAN PIERIK, City Attorney
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Agenda No. 7 B

CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: Honorable Mayor and Members of the City Council
FROM: Fred Marsh, Administrative Services Director
MEETING DATE: June 18, 2025
SUBJECT: Second Reading of an Ordinance to Adopt the Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget
CEQA: Does not constitute a Project per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION
Hold second reading of an ordinance to adopt the Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget

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

On May 21, 2025 and June 4, 2025, the City Council received a presentation on the draft budget for FY 2025/26 and 2026/27, the draft investment and financial polices, and information related to the City's pension challenges. These topics received comments and feedback from the City Council and community for inclusion in the final draft budget document.

The action before the City Council is to adopt an Ordinance (Attachment No. 1) for the draft Fiscal Years 25-26 and 26-27 Operating and Capital Improvement Budget (Attachment No. 2). The final draft budget document incorporates all prior comments and feedback from the City Council and Community into the final draft budget document. A complete version of the budget for the City as well as an executive summary are included as attachments to this report.

There were no substantive changes that occurred between the first and second reading of this ordinance.

The City Clerk caused a summary of the ordinance to be published in June 2025.

OPTIONS
Approve ordinance
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Approve ordinance
Provide alternate direction
FINANCIAL IMPACT:

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

FOCUSED PRIORITY AREA: Financial Sustainability
Attachments
Budget Ordinance
Budget Executive Summary
Budget Draft 06-11-25
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ORDINANCE NO. 25-xxx

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE

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

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

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

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

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

5. In the enactment of this ordinance, the City followed the guidelines adopted by the State of California and published in the California Code of Regulations, Title 14, Section 15000, et seq.

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

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

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

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

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

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

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

AYES:

NOES:

ABSENT:

APPROVED:

NICK SMITH, Mayor
ATTEST:

SANDRA KANDELL, City Clerk
APPROVED AS TO FORM:

BRIAN PIERIK, City Attorney
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City of Pacific Grove
California
Executive Budget Summary
Fiscal Years 2025-2026 and 2026-2027
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
www.cityofpacificgrove.gov
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Matthew Mogensen
City Manager
Table of Contents
Revenue and Economic Factors ............................. 3 Staffing and Five Year Forecast ............................. 7 Capital Plan and Long-Term Obligations ................. 9 Financial Summaries ............................................ 12 General Fund Departmental Expenses ................. 15 City Profile and History ......................................... 15 City Achievements and Goals .............................. 17 Financial Policies Summary .................................. 19 Mission and Vision
 Mission: To deliver quality professional public
services in the City and region
 Vision: To thoughtfully grow as an inclusive
community, protecting its character
Core Values
 Leadership: Uphold the highest work ethic
 Inclusiveness: Cultivate an environment of trust
 Integrity: Safeguard public trust
 Collaboration: Promote transparent engagement
 Stewardship: Protect our natural environment
Focused Priority Areas and Goals
 Sustainability: Ensure delivery of City services
 Infrastructure: Maintain community assets
 Stewardship: Implement sustainable practices
 Development: Promote Housing / Development
City Council FY 2025-26
Mayor: Nick Smith
Councilmembers: Joe Amelio
Cynthia Garfield
Lori McDonnell
Chaps Poduri
Tina Rau
Paul Walkingstick
The City of Pacific Grove
presents its two year Executive
Budget Summary for Fiscal
Years 2025-26 and 2026-27.

The executive summary is
designed to present the City’s
financial condition in a
concise, easy to read format
for all users.

Summary of Adopted Budget
This report summarizes the
City’s operating budget, which
contains more detailed financial
information.

Certain disclosures required by
generally accepted accounting
principles (GAAP) are omitted.

Audit Opinion / Awards for Excellence
The City has received a “clean” unmodified audit
opinion for its ACFR, and a Certificate of
Achievement for Excellence in Financial
Reporting (COA) from the Government Finance
Officers Association (GFOA). In addition, the City
has received awards for excellence for its
operating budget from GFOA and the California
Society of Municipal Finance Officers. These
awards focus on providing quality documents
that are easy to understand by the public.

Social Media for the City
Website: cityofpacificgrove.org
Facebook: CityofPacificGrove
X/Twitter: @PacificGrove
Welcome Message
From the
City Manager
Pacific Grove Budget
Executive Summary
Fiscal Year 25-26 / 26-27
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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
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Economic Factors Affecting General Fund Revenues
Property Taxes
0 Sales and Use Taxes
Transient Occupancy (Hotel) Taxes (TOT) / Other Taxes
Proposition 13 sets the Fiscal Year 75-76 assessed values as the base year, with a growth rate limited to 2% for any given year. The County Assessor also reappraises each real property parcel when there are purchases, construction, or other statutorily defined changes in ownership. Proposition 13 limits the property tax to 1% of each property’s full value, plus any additional percentages for specific voter approved indebtedness. The City receives approximately 16% of every dollar of property tax, with the balance distributed to the School District, County and local special districts. Property taxes are less likely to quickly respond to changes in the economy. The continued increases in property taxes is attributed to both demand for homes in the area and rising property values; however higher interest rates could impact future home sales.

Voters approved Measure A, a new 0.50% transaction and use tax. This increased the combined sales tax rate to 9.25% in October 2022. The General Fund portion of the City sales tax is comprised of a 1% Bradley-Burns statutory sales tax rate; and Measure U, a 1% transaction and use tax that was approved by voters in 2008. The transactions and use tax portion of the rate increased to

1.5% resulting from the passage of these measures. Restaurants and Hotels are the largest providers of sales tax to the City, followed by businesses in the building and construction category and from the County/State sales tax pool.

Administrative Services works closely with HdL, the City’s sales tax consultant, on tax recovery and projections. Estimates are based on a combination of information from HdL and trends over the past few fiscal years.

Transient Occupancy / Hotel Tax (TOT) - Is a lodging tax that is collected on overnight rental accommodation stays of 30 consecutive days or less. In 2010, the City updated its municipal code and began collecting TOT on residential or short-term rental properties (STRS). In Fiscal Year 17/18, the City approved an ordinance to reduce the number of short-term rentals, with an effective date of April 30, 2019. In November of 2018 voters approved Measure U, increasing the TOT rate to 12%. This increased tax was partially offset by Measure M, eliminating STR’s outside coastal and commercial zones.

Utility Users Tax - The City imposes a utility users’ tax to residents and businesses within the City that utilize water, gas, electricity, telephone, and cable services. This tax is assessed at a rate of 5% of the amount charged by the utility; and it is paid by the person consuming the service. The amount of revenues received is affected by updates to the underlying rate structures or new development projects. Franchise Taxes - The City grants franchises to utilities to construct, maintain, lay infrastructure, or operate transportation on or over streets, alleys, lanes, or other public places within the City. New franchises or their renewal are levied a tax of at least 2% of gross annual receipts from franchises in the City. $7.6
$7.6
$8.2
$8.6
$9.3
$10.0
2019
2020
2021
2022
2023
2024 Property Taxes
$4.8
$4.8
$5.0
$5.6
$6.7
$7.1
2019
2020
2021
2022
2023
2024 Sales Taxes
Information related to major revenues categories is provided within this section. All graphs are in millions. The revenues listed represent over 75% of the General Fund's revenues. Estimates of user fees and other operating revenues and fees are prepared by Finance based upon revenue trends in these categories and economic information for the County of Monterey.
$5.3
$5.3
$4.0
$6.8
$7.1
$7.4
2019
2020
2021
2022
2023
2024 TOT
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Economic Factors Affecting Other Fund Revenues
Sewer Fees
Golf Course Fees
Cemetery and Local Water Project (LWP) Fees
Other Restricted Revenues
In May 2014, a Sewer Collection System Master Plan (SCSMP) was developed to evaluate the existing sewer infrastructure and develop an asset replacement schedule. In February 2015, a Ten-Year Sewer Collection System Financial Plan and Rate Study was prepared to support funding for the capital improvements. These documents were used as the basis to successfully implement multi-year fee increases. The revenues received from the fees are used to support operating costs, as well as the identified improvements.

The City contracts the services of the golf course to CourseCo Inc. for the management and operations of the golf course and related facilities. Golf operations are funded entirely through golf fee revenues. CourseCo is responsible for managing the 18-hole golf course, driving range, putting greens and the clubhouse. The golf course restaurant is run by a separate third party. The business model for golf operations provides discounted golf for residents and a direct economic benefit to the community.

The City operates and maintains the El Carmelo Cemetery. The City coordinates with area mortuaries and other individuals for services at the cemetery. The City establishes fees on an annual basis for the services provided at its cemetery.

The City entered into an agreement with PERC Water to design and build the Local Water Project to replace approximately 123 acrefeet/year (.11 million gallons daily average) of irrigation demands with nonpotable supplies for the irrigation of the Municipal Golf Links and the El Carmelo Cemetery and provide toilet flushing for two public restrooms.

Public Safety - The City receives a variety of funds from other governments to supplement the funding of police and fire, including funds received for Asset Seizure, Abandoned Vehicle Abatement, Fire Emergency Equipment, Public Safety Augmentation and Supplemental Law Enforcement Services. These funds are part of the Police Fund restricted for use for specific types of activities.

Streets - The County passed a supplemental sales tax of 0.5% as overseen by the Transportation Agency for Monterey County (TAMC). These funds are used to support a variety of local and regional transportation projects and are accounted for in the Streets Fund. The City also receives from the State Gas Tax and Road Maintenance and Rehabilitation (RMRA) funds that can also be used for street maintenance.

Business/Tourism Fees - The Downtown Business District Fund accounts for fees from businesses within the Business Improvement District, which are paid to the Grove Chamber of Commerce. The Hospitality and Tourism Improvement Districts Fund accounts for fees paid by hotels, with half of the fees remitted to the Chamber of Commerce and the other half remitted to the Monterey County Convention and Visitor's Bureau. $3.3
$3.4
$3.6
$3.6
$3.7
$3.8
2019
2020
2021
2022
2023
2024 Sewer Fees
$0.4
$0.5
$0.6
$0.8
$0.8
$0.7
2019
2020
2021
2022
2023
2024 Cemetery / LWP
$0.43
$0.29
$0.36
$0.66
$0.83
$0.80
2019
2020
2021
2022
2023
2024 Golf Fees
Information related to major revenues categories is provided within this section. All graphs are in millions. The revenues listed represent over 75% of non General Fund revenues. 5 PGCC 6-18-25

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Economic Analysis
Amount / Change Amount / Change
Housing Starts ↑ 11.2% Crude Oil $82/barrel
Housing Prices ↑ 4.7% 2 Year Treasury 5.0%
Existing Home Sales ↓ 5.9% Consumer Sentiment 52
Trade Balance ($123 Billion) Retail Sales ↑ 4.6%
Labor Participation Rate 62.5% U-6 Unemployment Rate 8.00% Gross Domestic Product (GDP) ↓ 0.3% U.S. Dollar vs. Euro $1.07 Economic Statistic Economic Statistic
Local Economy:

Pacific Grove’s local economy is supported by residents, regional visitors, and a strong tourism base. Economic development and revitalization of the commercial corridors, particularly the downtown, will continue to be a focus for the City. The addition of a new 100-room boutique hotel in the downtown, the P.G.

Hotel, which will be operated by the Kimpton Hotel group, promises to bring needed additional foot traffic to the downtown. This new hotel is anticipated to increase transient occupancy tax, property tax and sales tax revenues once the project is complete and occupancy commences. The hotel
developers broke ground on the project and expect a 2-year construction phase.

National Economy:

Stock Market: Market volatility increased in April to levels last seen at the onset of the pandemic as initial tariff announcements far exceeded market expectations. Even after some tariffs were paused for 90 days, a blanket 10% rate for most countries remains in effect, as does tariffs on steel, aluminum, autos, and imports from Canada and Mexico not covered by the USMCA, along with tariffs on China, with a few exclusions. The effective tariff rate is at the highest level in over 100 years.

Interest Rates: The Federal Reserve (Fed) continues to follow a wait-and-see approach. Fed Chair Jerome Powell said he expects tariffs to move the Fed further away from both sides of its dual mandate goals of stable prices and maximum employment, and will make policy adjustments only in reaction to any increase in inflation or deterioration of labor markets.

Consumer Spending: The soft data from business and consumer surveys deteriorated markedly, while hard data, like employment and retail sales, were remarkably firm. U.S. gross domestic product (GDP) shrank in Q1 by -0.3% as a surge in imports – a subtraction from GDP dragged down reported growth. Final sales to domestic purchasers, a metric used by the Fed to gauge private sector demand remained strong. However, prospects for consumer spending remain uncertain given the pull-forward of demand in advance of tariffs which may weigh on growth later in the year.

Inflation: The Core Personal Consumption Expenditures Index (PCE), which is the Fed’s preferred measure of inflation, was flat in April on a month-over-month basis, marking the slowest pace of price increases in five years.

The annual rate was 2.3%, still over the Fed's desired target of 2%.

Employment: Non-farm payrolls continued to beat expectations, growing by 177,000 in April while the unemployment rate remained at 4.2%. The data points toward labor market strength and provides the Fed cover to keep policy rates unchanged while it analyzes the impact of tariffs.

Other U.S. Economic Statistics from Bloomberg as of March and April 2025 are shown below:
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Staffing
Department FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Police 34.00 34.00 34.00 34.00
Public Works 27.40 29.90 30.15 30.15
Other
City Council 7.00 7.00 7.00 7.00
City Manager 4.43 5.18 5.18 5.18
Administrative Services 11.02 11.27 11.27 11.27
Community Development 7.50 8.75 8.75 8.75
Library 8.50 9.00 9.00 9.00
Recreation / Lighthouse 8.90 8.90 9.15 9.15
Totals 108.75 114.00 114.50 114.50
Funded by
General Fund 96.35 101.37 100.67 100.67
Other Funds 12.40 12.63 13.83 13.83
Totals 108.75 114.00 114.50 114.50
City Volunteer Program
The City provides a competitive salary and benefits package to address the strategic goal of attracting and retaining skilled staff. The City pays most of the full premiums of health, dental and vision for the employee, and some of the costs of premiums for their dependents.

See the City’s website for salary schedules and employee MOUs, including benefit provisions, and subsequent pages of this document for detailed position listings. No significant changes are proposed in staffing levels for the next two fiscal years. The position counts below include the FTEs of full-time and part-time positions.

The City’s Volunteer Program oversees the organization and management of various city volunteer programs including the Point Pinos Lighthouse, the Pacific Grove Library, the Hyperbaric Chamber, the Perkins Park and Chautauqua Hall Gardening Clubs, the Parks and Recreation Student Experience Program, the International Internship Program, the CSUMB Service Learning Program and various individual volunteers that assist city departments. Management of the programs include tracking hours, promoting programs and recruiting volunteers, providing volunteer orientations, planning recognition events and assisting programs with a variety of administrative duties. The volunteer program hosts an annual Volunteer Appreciation Event each year in April in recognition of National Volunteer Month.
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Five Year Forecast - General Fund
General Fund 5 Year Forecast
Proposed Projected Projected Projected Projected
Category 25-26 26-27 27-28 28-29 29-30
Revenues: $ 32,729,400 $ 33,302,700 $ 34,385,000 $ 35,505,000 $ 36,663,000 Expenses:

Operating Expenses 26,941,941 28,232,671 29,080,000 29,953,000 30,851,000 Pension / Debt Obligations 6,259,581 6,588,293 7,154,441 7,708,010 6,199,042 Capital Outlay / Transfers 1,487,600 1,055,500 1,087,000 1,119,000 1,153,000 Total Expenses 34,689,122 35,876,464 37,321,441 38,780,010 38,203,042 Net Change for Fiscal Year (1,959,722) (2,573,764) (2,936,441) (3,275,010) (1,540,042) Projected Ending Reserves 12,021,945 9,448,181 6,511,740 3,236,730 1,696,688 Projected Reserve Level 36% 27% 18% 9% 5%
Proposed
Two Year Budget
Future Trends with No Changes to
Revenues and Expenses
Operating Expenses
Wages: Assumes no additional staffing for the five year period, assumes future annual COLA adjustments to be similar to those in the current employees’ MOUs.

Other Operating Expenses: Increases of 3% annually, similar to the assumed future rate of inflation. Assumes no additional contributions to pension or capital reserves.

Non-Operating Expenses and Reserves
Debt Service: Incorporates debt service on debt through their maturities. Note that the Pension Obligation Bonds will mature in 2029.

Pension Actuarial Liabilities: Pension includes estimated amounts from CalPERS actuarials. Assumes CalPERS will attain its annual assumed rate of return of 6.8% in future years.

The table below summarizes the City’s projected General Fund revenues and expenses over the next few years. This forecast does not include any revenues associated with pending new hotel developments. Actual results could vary significantly from this forecast. The forecast includes the following additional assumptions:
36% 27% 18% 9% 5%
25-26 26-27 27-28 28-29 29-30
Projected General Fund Operating Reserves
(With No Changes in Assumptions to Revenues and Expenses - Does Not Account for 2 New Hotels in Future)
Revenues
Property Taxes: Assumes to grow at an annual rate of 4%, based upon Proposition 13 restrictions and assumed property transfers and some minimal growth within the City.

Other Taxes and Revenues: Assume to grow at a rate of between 1-3% based upon historical trends and analysis from other third parties. $32.7 $33.3
$34.4
$35.5
$36.7
25-26
26-27
27-28
28-29
29-30
Revenues (Millions)
$34.7
$35.9
$37.3
$38.8
$38.2
25-26
26-27
27-28
28-29
29-30
Expenses (Millions)
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Capital Program
Major Projects and Capital Outlay Funded in Proposed Two Year Plan Streets / Wastewater Infrastructure Information Services Projects / Capital Outlay • Street Rehabilitation Project $3.4M • VOIP Phone System Improvements $10K • Mandated ADA Improvements $450K • Network Upgrade $62K • Crack and Slurry Seal $450K • City Council Chambers Equipment $10K • Sewer Force Main Replacement $600K • Police Door Access Upgrade $100K • Sewer Collection System (SCSMP) Projects $7M • City Hall Door Access $140K • Urban Diversion Station Repair $100K • Redundant Internet And Firewall $43.5K Facilities Other Projects and Capital Outlay
• Library Pillar Privacy / Study Booth ADA $25K • Chinese Pavillion / Moon Gate $200K • Chautauqua Hall Building Improvements $700K • Point Pinos Grill Boiler Replacement $40K • City Hall Window and Door Replacement $32K • Recreation Trail Improvements $16K • Fire Station Alerting System $100K • Equipping New Fire Engine $50K • Roof Repairs Police Department $70K • Purchase Of Radios $40K • Youth Center Roof Repair $32K • Light Fixtures, Poles for Solar Lights $100K Funding Sources for Capital Projects for Fiscal Year 2025-26 A significant amount of capital improvements and capital outlay are planned in a two year time frame, all of which are designed to address some of the City’s strategic goals. The capital improvements are based upon asset management studies and are designed to improve operations and address capital reinvestment in infrastructure at the City’s facilities.

The Capital Improvement Program (CIP) is designed to meet community needs, with special emphasis on those projects that contribute to the City’s economic vitality and quality of life. In addition to the items mentioned below, several capital projects originally authorized in FY 24- 25 will be carried over to Fiscal Year 25-26, as discussed in detail in the capital program section of the budget.
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Long Term Debt
Outstanding Debt Issues as of June 30, 2025
Bond Issue Interest Rate Maturity Debt Service Bonds Outstanding Pension Obligation Bond 5.67%-6.12% 6/1/2029 $1.5-$1.6 million $ 5,008,190 Wastewater Revenue Refunding Bond 3.35% 10/1/2031 $88,000 503,660 Golf Course Site Lease 4.35% 8/1/2030 $272,000 1,318,327 Clean Water State Revolving Fund Loan 1.00% 12/1/2048 $206,000 4,223,069 PG&E Financing Loan None 12/1/2026 $13,000 18,841
The City’s Budget and Financial Management Policy provides guidance on long-term borrowing. This includes limiting the use of long-term financing to fund capital improvement projects and equipment. The City is projecting sufficient revenues to fund all debt service requirements.

Standard and Poor’s Rating Services and Moody’s Investors Services, Inc., assigned a rating of SP-1+ and MIG 1, respectively to the City’s 2006 Pension Obligation Bonds. The City has not received any updates to this rating. The City does not have any General Obligation (GO) Bonds. The California Government Code, Section 43605 caps GO debt at 15% of the assessed value of all real and personal property within the City. The legal debt margin based on the Fiscal Year 23-24 ACFR is $662 million. Good credit ratings are essential for the City to continue to be able to issue debt for future projects and to $5,008,190
$503,660
$1,318,327
$4,223,069
Pension Obligation Bond Wastewater Revenue
Refunding Bond
Golf Course Site Lease Clean Water State
Revolving Fund Loan
Debt Outstanding at June 30, 2025
Description of Bonds Outstanding:

Pension Obligation Bond: Payable from General Fund, to refund a prior CalPERS actuarial liability (i.e. side fund).

Wastewater Refunding Bond: Repayable from Sewer Fund, to refinance prior bonds, debt coverage of 125%.

Golf Course Lease: Repayable from Golf Fund, to refinance prior bonds, required debt coverage of 125%.

State Clean Water Loan: Repayable from the Local Water Fund, to fund the construction of a recycled water treatment plant and related infrastructure, with a required debt coverage of 125%. 10 PGCC 6-18-25

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Pension Liability
Key Pension Statistics Amount Fiscal Year Amount
Net Pension Liability $55.0 million 2024-25 $ 4,465,163 % of Gross Liability Funded 76% 2025-26 5,000,758
Pension Bond Balance 6/30/25 $5.0 million 2026-27 5,299,352 Debt Service on Pension Bonds $1.5-1.6 million 2027-28 5,559,441 City Contributions - Active Employees $1.0 million 2028-29 6,058,012 Number of Classic / PEPRA Employees 30/59
Active Employees 89 15 Years 5,984,912
Retired Employees 272 10 Years 7,775,514
Normal Cost by Pension Plan Total Normal Cost Employer Share Employee Share Classic – Miscellaneous (2% at 55) 19.51% 7.51% 12.00%
Classic – Safety (3% at 50) 36.37% 24.37% 12.00%
PEPRA – Miscellaneous (2% at 62) 15.62% 7.87% 7.75%
PEPRA – Safety (2.7% at 57) 27.51% 13.76% 13.75%
Alternate Payment Schedules
Annual Unfunded Liability Payments
Information contained in this section is based on the most recent risk analyses from CalPERS. Per the most recent
CalPERS actuarial schedule, the Net Pension Liability is scheduled to be paid off in 2044. The City will look into establishing a pension trust fund to assist with the
repayment of this liability. The $5.5 million of outstanding Pension Obligation Bonds have an interest rate of 6% and mature in 2029.

CalPERS targeted annual rate of return is 6.8%, its actual one year return was 9.3% and 20 year is 6.7%. if CalPERS reduces this discount rate by 1%, the City’s projected liability would increase by $21 million. Reducing the amortization of this debt would result in projected savings of $4 million and $16 million by reducing the amortization period to either 15 and 10 years respectively.

The City requires employees to pay the entire amount of the employee pension contribution, plus between 3-5% of the City’s employer contribution for classic members (Normal Cost), whereas employees covered under PEPRA pay ½ of
the Normal Cost for their plan. In addition, to reduce its long-term overall liability for its three plans, the City will Fiscal Year 2025-26 make the annual payment on its
unfunded liability to CalPERS at the beginning of the fiscal year, resulting in a reduction in the total paid on this liability for the fiscal year, resulting from reduced interest charges.

9.3%

5.8%
-6.1%

4.7%

6.7%
2024
2023
2022
2021
2020
CalPERS Rate of Return
76%
77%
88%
75%
75%
2024
2023
2022
2021
2020
Funding Status
$55
$52
$33
$46
$43
2024
2023
2022
2021
2020
Net Pension Liability (Millions)
$4.47 $5.00 $5.30 $5.56 $6.06
2024-25 2025-26 2026-27 2027-28 2028-29
Annual Payments on Unfunded Actuarial Liability (In Millions) 11 PGCC 6-18-25

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Fund Balance / Working Capital Estimates
Projected
Revenues /
Transfers In
Proposed
Expenses /
Transfers Out
Change for
Fiscal Year
25-26
Projected
Ending
Balance
FY 25-26
Projected
Revenues /
Transfers In
Proposed
Expenses /
Transfers Out
Change for
Fiscal Year
26-27
Projected
Ending
Balance
FY 26-27
General Fund $ 32,729,400 $ 34,689,122 $ (1,959,722) $ 12,021,945 $ 33,302,700 $ 35,876,464 $ (2,573,764) $ 9,448,181 Pension Reserve 25,000 25,000 525,000 25,000 25,000 550,000 General Fund 32,754,400 34,689,122 (1,934,722) 12,546,945 33,327,700 35,876,464 (2,548,764) 9,998,181 General Fund CIP 506,682 650,000 (143,318) 1,307,159 506,682 850,000 (343,318) 963,842 Capital Projects Fund 506,682 650,000 (143,318) 1,307,159 506,682 850,000 (343,318) 963,842 Employee Benefits 316,299 312,700 3,599 82,416 377,424 373,485 3,939 86,355 Liability Insurance 925,299 916,948 8,351 581,413 1,000,299 975,966 24,333 605,746 Workers Compensation 753,944 882,167 (128,223) 526,914 918,944 957,102 (38,158) 488,756 Internal Service Funds 1,995,542 2,111,815 (116,273) 1,190,743 2,296,667 2,306,553 (9,886) 1,180,857 Library 13,141 13,141 597,030 13,141 13,141 610,172
Cemetery 121,734 121,734 2,386,765 129,319 129,319 2,516,084 Yount 8,000 8,000 781,371 8,000 8,000 781,371
Permanent Funds 142,876 8,000 134,876 3,765,166 150,460 8,000 142,460 3,907,626 Cemetery 580,902 848,109 (267,207) 759,498 548,988 899,192 (350,205) 409,293 Golf 956,538 1,026,682 (70,144) 796,538 977,149 987,833 (10,684) 785,854 Local Water Project 1,288,746 1,025,105 263,641 81,803 1,001,146 1,066,388 (65,242) 16,561 Sewer 4,099,809 3,945,269 154,540 7,398,220 4,099,809 10,342,679 (6,242,870) 1,155,350 Enterprise Funds 6,925,996 6,845,166 80,830 9,036,058 6,627,092 13,296,092 (6,669,000) 2,367,058 Special Activities 576,479 578,950 (2,471) 142,723 602,840 605,310 (2,470) 140,253 Museum 8,073 8,073 198,308 8,073 8,073 206,380
Library 101,677 87,400 14,277 294,174 111,677 70,400 41,277 335,451 Recreation 139,996 187,908 (47,912) 267,604 148,431 141,946 6,485 274,089 Police 797,503 842,209 (44,706) 220,629 797,503 823,182 (25,679) 194,949 Fire 24,575 100,000 (75,425) 99,837 24,575 12,880 11,695 111,532 Streets 1,619,540 1,909,283 (289,743) 173,376 1,612,195 1,754,452 (142,257) 31,119 Housing / Developmnt 88,111 464,284 (376,173) 658,277 88,111 206,852 (118,741) 539,536 Grants 1,005,396 1,075,000 (69,604) 123,321 5,396 5,396 128,718 Cable Franchise PEG 49,171 120,000 (70,829) 13,363 49,171 60,000 (10,829) 2,534 City Facilities 10,548 48,003 (37,455) 58,432 10,548 10,548 68,980 Special Revenue Funds 4,421,069 5,413,037 (991,968) 2,250,043 3,458,519 3,675,022 (216,502) 2,033,541 Total All Funds $ 46,746,565 $ 49,717,141 $ (2,970,576) $ 30,096,114 $ 46,367,122 $ 56,012,131 $ (9,645,010) $ 20,451,105 Fund
General Fund: Reserves have been established at 25% per Council policy and are impacted by its revenues and expenses discussed in subsequent pages. The General Fund CIP is funded through transfers from the General Fund.

Internal Service Funds: These funds represent the collections of charges from other funds used to pay insurance premiums and claims and employee benefits, with reserve policies established at 75% of liabilities for the insurance funds.

Sewer/Other Funds: The Sewer fund reflects sewer service charges used for operations and system maintenance and improvements. A reserve policy has also been established for the Golf Fund (25% of revenues). Other funds reflect the receipt of grant and other funds for eligible projects and programs. 42%
25%
4%
5%
24%
Reserves by Major Fund / Fund Type FY 2025-26
General / Pension Trust $12.5 million
Sewer $7.4 million
Internal Service $1.2 million
Other Enterprise $1.6 million
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General Fund Revenues by Object Category
FY 23/24
Actual
FY 24/25
Budget
FY 24/25
Estimated
FY 25/26
Estimated
Variance from
CY Budget
FY 26/27
Estimated
Property Taxes $ 10,001,562 $ 10,296,000 $ 10,519,100 $ 10,931,300 $ 635,300 $ 11,360,000 Transient Occupancy Taxes 6,820,365 7,012,000 6,736,700 6,736,700 (275,300) 6,938,800 Sale and Use Taxes 5,975,031 6,094,000 5,945,600 5,945,600 (148,400) 6,005,200 Utility User Taxes 2,118,069 2,043,000 2,155,500 2,183,500 140,500 2,212,700 Franchise Taxes 1,635,967 1,659,000 1,582,400 1,603,400 (55,600) 1,625,700 Business License Taxes 607,647 393,000 393,000 393,000 404,800 Other Taxes 159,401 240,000 113,100 117,600 4,500 122,300 Total Taxes 27,318,041 27,737,000 27,445,400 27,911,100 301,000 28,669,500 Intergovernmental Revenues 296,788 61,000 100,798 96,900 35,900 96,900 License, Permits, Fees 1,260,969 1,274,000 973,500 1,013,100 (260,900) 1,043,400 Charges for Services 2,030,259 2,278,840 2,032,987 2,049,900 (228,940) 2,089,400 Interest and Rents 1,074,388 630,000 747,600 619,700 (10,300) 623,500 Other Revenues 1,218,342 1,267,187 2,120,000 999,700 (267,487) 741,000 Fines and Forfeitures 36,868 115,000 13,500 39,000 25,500 39,000 Total General Fund $ 33,235,654 $ 33,363,027 $ 33,433,785 $ 32,729,400 $ (405,227) $ 33,302,700 Category / Department
Information on General Fund Taxes are discussed in detail in subsequent pages of this document. Licenses and Permits include construction permits, plan check fees and zoning enforcement which can vary significantly from year to year based upon the expected level of development in the City. Charges for Services include charges for recreation programs, indirect cost reimbursements from other funds and parking meters and enforcement. Interest and rents include facility rentals interest earned on reserves. 4%
0% 0%
1% 1%
4%
3%
1% 1% 1%
Property Taxes Hotel Taxes Sales and Use
Taxes
Utility User
Taxes
Franchise
Taxes
Projected Changes in General Fund Tax Revenues
25-26
26-27
39%
24%
21%
8% 8%
Distribution of Tax Revenue - FY 25-26
Property Taxes $10.9 million
Hotel Taxes $6.7 million
Sale and Use Taxes $5.9 million
Utility User Taxes $2.2 million
Franchise / Other Taxes $2.1 million
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General Fund Expense Estimates by Object Category
FY 23/24
Actual
FY 24/25
Budget
FY 24/25
Estimated
FY 25/26
Proposed
Variance from
CY Budget
FY 26/27
Proposed
By Object Category
Regular Salaries and Benefits $ 11,926,895 $ 14,135,011 $ 13,075,767 $ 14,779,664 644,653 $ 15,432,414 Internal Service Charges 1,483,000 1,090,000 1,090,000 1,364,000 274,000 1,632,000 Services and Supplies 10,342,411 12,764,625 12,499,274 10,798,277 (1,966,348) 11,168,257 Total Operating Costs 23,752,306 27,989,636 26,665,041 26,941,941 (1,047,695) 28,232,671 Non-Operating Costs:

Debt Service 1,423,872 1,462,562 1,462,562 1,512,562 50,000 1,557,562 Pension - Unfunded Liability 4,006,443 4,212,163 4,212,163 4,747,019 534,856 5,030,731 Capital Outlay 256,965 384,797 286,322 370,000 (14,797) 225,500 Total General Fund $ 29,439,586 $ 34,049,158 $ 32,626,087 $ 33,571,522 (477,636) $ 35,046,464 .

Object Category
Personnel Costs: These are based on proposed staffing levels for Fiscal Year 25-26 and 26-27, as shown in subsequent pages of this document. These costs incorporate additional personnel changes noted elsewhere in the transmittal letter. Salaries incorporate a 3% cost of living adjustment (COLA), scheduled step increases for employees and negotiated benefits in accordance with employee memorandums of understanding (MOUs) which are in effect through June 30, 2026. Pension costs incorporate revised estimates from CalPERS for normal pension costs and staff estimates for health insurance costs based upon the terms for cost sharing in the employee MOUs.
44%
32%
5%
14%
5%
Distribution of Expenses FY 25-26
Personnel Costs $14.8 million
Services / Supplies $10.8 million
Capital / Internal Service $0.4 million
Pension Actuarial Liability $4.2 million
Debt Service $1.5 million
44%
32%
5%
14%
4% Distribution of Expenses FY 26-27
Personnel Costs $15.4 million
Services / Supplies $11.2 million
Capital / Internal Service $0.2 million
Pension Actuarial Liability $5.0 million
Debt Service $1.6 million
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City Profile / Demographics
The City is a small coastal community located in Monterey County that occupies just under three square miles, with a population of approximately 15,000 residents, with 56% of the adults having college degrees, and almost half of the population over the age of 50, with an average household income of approximately $120K and average median sales price of $1.46 million, with 48% of the residential properties owner occupied.

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

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

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

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

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

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

The City provides police protection, street, park and facility maintenance, recreational, planning, zoning, economic development, library, administrative and financial services for Pacific Grove. Fire protection services are provided through a contract with the City of Monterey. Additional services include sewer operations, a municipal golf course, Point Pinos Lighthouse, cemetery, a monarch butterfly sanctuary and habitat preserve, several local parks, trails and open space and a local water reclamation facility.
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History
The natural advantages of settling along the Monterey Peninsula were recognized thousands of years before Pacific Grove was founded. Native Americans, which are currently known as the Ohlone/Costanoan-Esselen Nation occupied the coastal and inland areas, which included Pacific Grove.

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

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

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

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

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

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

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

Community Attractions and Events

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

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

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

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

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

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

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

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

The City is a member of the California Joint Powers Insurance Authority (the “Authority”). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The Authority arranges and administers programs for the pooling of self-insured losses, purchases excess insurance and reinsurance, and arranges for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978.

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

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

Appendix

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

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

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

Respectfully submitted,
Matt Mogensen Fred Marsh
City Manager Administrative Services Director
Lovers Point
Recreation Trail
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City of Pacific Grove
California
Proposed Budget
Fiscal Years 2025-2026 and 2026-2027
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
www.cityofpacificgrove.gov
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City of Pacific Grove Budget
Table of Contents
To access sections, use the bookmark’s icon on the title bar or click on the page numbers below:

Transmittal Letter Department and Capital Budgets
5 Overview 68 Departmental Summary General Fund
6 Economic Factors and Analysis 69 Departmental Budgets 9 Staffing 92 Capital Overview and Summary
10 Five Year Forecast 95 Capital Improvement Projects
11 Capital Program 111 Technology / Capital Outlay
12 Debt and Pension Obligations 112 CIP AnƟcipated Accomplishments 14 Financial and Dept Summaries
18 Profile / Strategic Goals / History Comparisons, Trends, Financial Policies 20 Accomplishments / Goals
116 Comparisons of Selected Agencies
City Overview 117 Ten Year Trends
128 Financial Policy Summaries
24 Mission and Vision 129 Fees, Charges and Cost Recovery 25 Focus Areas 131 Investments
27 Map of Service Area 137 Budget / Financial Management 28 Budget Awards 144 Council Goals
30 Organizational Chart
Trends, Agency Comparisons, Appendix
Financial Summaries and Staffing
146 Budget Calendar
32 Fund Type Descriptions 147 Debt ObligaƟons
33 Revenues and Expenses by Fund 150 Budget and CIP ResoluƟon 35 Fund Summaries by Fiscal Year 151 Gann / AppropriaƟons Limit 38 Fund Detail Sheets 153 Acronyms
61 Staff Position by Department / Position 154 Glossary 65 Employee Compensation 156 Index
Point Pinos Lighthouse
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City of Pacific Grove
List of Principal Officials
Fiscal Year 2025-2026
Elected Officials

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

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

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

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

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

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

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

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National Economy:

The annual rate was 2.3%, still over the Fed's desired target of 2%.

Other U.S. Economic Statistics from Bloomberg as of March and April 2025 are shown below:

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PG FY 25-26 and FY 26-27 Budget 9
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Other Operating Expenses: Increases of 3% annually, similar to the assumed future rate of inflation. Assumes no additional contributions to pension or capital reserves.

Non-Operating Expenses and Reserves
Debt Service: Incorporates debt service on debt through their maturities. Note that the Pension Obligation Bonds will mature in 2029.

Pension Actuarial Liabilities: Pension includes estimated amounts from CalPERS actuarials. Assumes CalPERS will attain its annual assumed rate of return of 6.8% in future years.

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Pension Obligation Bond: Payable from General Fund, to refund a prior CalPERS actuarial liability (i.e. side fund).

Wastewater Refunding Bond: Repayable from Sewer Fund, to refinance prior bonds, debt coverage of 125%.

Golf Course Lease: Repayable from Golf Fund, to refinance prior bonds, required debt coverage of 125%.

State Clean Water Loan: Repayable from the Local Water Fund, to fund the construction of a recycled water treatment plant and related infrastructure, with a required debt coverage of 125%.

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9.3%

5.8%
-6.1%

4.7%

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

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

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

Community Attractions and Events

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

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

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Risk Management

Appendix

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

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

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

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

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

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

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

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City of Pacific Grove
Focus Areas with Value Statements and Proposed SupporƟng Tasks Fiscal Years 2025-2026 and 2026-27
Financial Sustainability
Policy Value Statement: Manage financial resources
to ensure the long-term delivery of City services
Goal 1: IdenƟfy a program to reduce unfunded
liabiliƟes
• Pensions - Develop a plan to reduce our long-term
pension obligaƟons
• Local Water Project - Secure funding to repay the
debt service for the water reclamaƟon facility
• Storm Drains - Develop opƟons for a long-term
storm drain infrastructure funding plan
Goal 2: Review and revise reserve policies to meet
equipment and facility needs
• Policies - Update the City Council Financial and
Budgetary Policies to revise the City’s reserve fund
policies and present to the City Council
• Capital Plan - Create Capital Replacement Funds to
plan for regular maintenance and replacement of
vehicles, faciliƟes, equipment, infrastructure and
park ameniƟes, and present to the City Council
Goal 3: IdenƟfy and reduce expenditures and
enhance revenues
• Cost Recovery - Review low/no cost recovery
programs for effecƟveness, recommend
improvements
• Revenue Enhancement - IdenƟfy potenƟal new
revenue sources and present to the City Council
• Risk Management - Implement risk management
assessments findings and recommendaƟons to
reduce workers compensaƟon and liability claim
exposures
Community Development
Policy Value Statement: Strategically implement
programs promoƟng housing and economic
opportuniƟes
Goal 1: Explore opƟons for an affordable housing
project and partner opportuniƟes
• ADUs - Present findings and recommendaƟons to
Council for direcƟon on unpermiƩed ADUs
• Affordable Housing - IdenƟfy a preferred
affordable housing project locaƟon
Goal 2: Review all Permit processes to eliminate
barriers to housing and economic
development
• Water AllocaƟon - Evaluate the City’s current and
future water allocaƟons and facilitate a City
Council discussion on the prioriƟzaƟon of water
credits
• Business License - Review business license process
and implement efficiency measures
• Permit Processes - Evaluate Ɵmelines and permit
processes for commercial and residenƟal permits
and implement efficiency measures where feasible
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City of Pacific Grove
Focus Areas with Value Statements and Proposed SupporƟng Tasks Fiscal Years 2025-2026 and 2026-27
Infrastructure
Policy Value Statement: PrioriƟze the provision of
facility, human, and technology infrastructure that
enhances the quality of life for residents and
businesses
Goal 1: Complete a five-year capital improvement
program to address the compleƟon of
priority public facility projects (sidewalks,
streets, water, wastewater, and parks)
• Capital Plan - Develop and present a 5-year CIP
plan to the City Council
• Asset Management - Develop a new asset
management database
• Sidewalk Policy - Present updates to City Council
Policy 700-4 regarding sidewalk repairs and
installaƟon, to include a plan for City property and
a sidewalk repair process for property owners
Goal 2: Invest in technology and workforce systems
• AccounƟng System - Develop RFP and select
vendor for new Enterprise Resource System
• Disaster Recovery - Develop a business conƟnuity
plan for IT infrastructure and databases
• Staff RetenƟon - Develop a plan to develop and
retain key staff members
Goal 3: Address criƟcal physical infrastructure needs
• Schools - Develop a safe route to school plan and
present to the City Council
• Streetscape Plan - Create a downtown
streetscape improvement plan
• Wastewater Treatment - Release a sewer master
plan RFP
Environmental Stewardship
Policy Value Statement: Caring for and protecƟng the
City’s natural resources and ameniƟes
Goal 1: Complete Climate AcƟon and AdaptaƟon
Efforts
• Climate Plan - Present a Climate AcƟon and
AdaptaƟon Plan to the City Council for approval
• Fire Management - Provide fire safety inspecƟon
services for residents living near George
Washington Park and in High Fire Severity Zones
• George Washington Park - Complete a George
Washington Park Master Plan
Goal 2: Protect and Preserve the Natural Resources
of Pacific Grove
• Municipal Code - Complete the comprehensive
update to Title 12 of the municipal code; revisions
to focus on replanƟng compliance and tree appeal
process; to be presented to the City Council for
approval
• Wildlife ProtecƟon - Assess efforts within the City
that can be achieved, within available resources
and present feasible measures to the City Council
for consideraƟon
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Pacific Grove
City of Pacific Grove
Map of Pacific Grove and the
Monterey Bay Area
PG FY 25-26 and FY 26-27 Budget 27 PGCC 6-18-25

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PRESENTED TO
City of Pacific Grove
California
For the Fiscal Year Beginning
July 01, 2023
Executive Director

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

February 7, 2025
Ernie Reyna James Russell-Field, Chair 2024 CSMFO President Recognition Committee Dedicated to Excellence in Municipal Financial Reporting PG FY 25-26 and FY 26-27 Budget 29
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City of Pacific Grove Budget
Organization Chart / Dept Activities / Boards & Commissions Through Fiscal Year 2026-27
City Attorney
(Contract)
Boards and
Commissions
Administrative
Services
Recreation
City Manager's Office Community Development
City Clerk Planning
Economic Development Building (Contract)
Human Resources Code Compliance Beautification and Natural Resources Housing Diversity, Equity and Inclusion
Downtown Business Improvement District
Administrative Services Public Works Historic Resources Finance Buildings / Grounds Hospitality Improvement District Cemetery Capital Improvements Library
Information Services Environmental Planning Museum
Risk Management Equipment Maintenance Planning
Forestry Recreation
Golf Course Site Plan Review
Lighthouse Traffic Safety
Local Water Project Other Ad Hoc Committees
Sewer Zoning Administrator
Streets
Boards/Commissions
Administrative Enforcement Hearing Officer
Architectural Review
Mayor and City Council
Residents of the City of Pacific Grove
City Manager's
Office
Museum
(Contract)
Fire
(Contract)
Police
Community
Development
Public Works
City Manager
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City of Pacific Grove Budget
Financial Summaries and Staffing
Fund Information Enterprise Funds
32 Fund Type Descriptions 42 Cemetery
33 Revenues and Expenses by Fund 43 Golf
35 Fund Summaries by Fiscal Year 44 Local Water Project 45 Sewer
Fund Detail Sheets
38 General Fund Staffing
39 Internal Service Funds
46 Special Revenue Funds 61 Staff Positions by Department / Position 57 Capital Project Fund 65 Employee Compensation
58 Permanent Funds
The financial section provides an overview and detail of all of the City’s funds by fund type. It also includes a section on staffing by department, position and fund, and on employee compensation. See the financial policy section for the budget guidelines used in the development of the forecast.

Hopkins Marine Station
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City of Pacific Grove Budget
Fund Types
Department and program information are included in the subsequent sections of the document. All funds are separated by fund type. A definition of each fund type is provided below.

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

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

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

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

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

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

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

Andy Jacobsen Park
City Parks
Platt Park
Perkins Park
City Baseball Field
George Washington Park
Greenwood Park
Caledonia Park
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City of Pacific Grove Budget
Revenues by Fund - All Funds
Through Fiscal Year 2026-27
The table below shows the revenue trends for the General Fund and all funds for the next few fiscal years.

FY 23/24
Actual
FY 24/25
Budget
FY 24/25
Estimated
FY 25/26
Estimated
Variance from
CY Budget
FY 26/27
Estimated
General Fund - Main Fund $ 33,235,654 $ 33,363,027 $ 33,433,785 $ 32,729,400 $ (633,627) $ 33,302,700 Total General Fund 33,235,654 33,363,027 33,433,785 32,729,400 (633,627) 33,302,700 General Fund CIP 150,002 67,500 9,281 6,682 (60,818) 6,682 Total Capital Improvement Funds 150,002 67,500 9,281 6,682 (60,818) 6,682 Cemetery Endowment 177,927 113,000 119,776 121,734 8,734 129,319 Library Endowment 43,196 22,000 18,252 13,141 (8,859) 13,141 Yount Trust 16,675 8,000 8,000 8,000 8,000
Total Permanent Funds 237,798 143,000 146,028 142,876 (124) 150,460 Employee Benefits 348,321 265,000 278,379 316,299 51,299 377,424 Workers Compensation 568,519 722,113 731,511 925,299 203,186 1,000,299 Liability Insurance 1,143,440 752,000 755,478 753,944 1,944 918,944 Total Internal Service Funds 2,060,280 1,739,113 1,765,368 1,995,542 256,429 2,296,667 Cemetery 764,656 653,000 633,098 580,902 (72,098) 548,988 Golf 837,625 762,000 952,920 956,538 194,538 977,149
Local Water Project 1,029,933 935,000 1,157,177 1,001,146 66,146 1,001,146 Sewer 4,197,415 3,901,000 4,348,106 4,099,809 198,809 4,099,809 Total Enterprise Funds 6,829,630 6,251,000 7,091,300 6,638,396 387,396 6,627,092 American Rescue Plan 49,418 15,000 15,395 (15,000)
State Franchise PEG 51,111 48,000 50,015 49,171 1,171 49,171 City Facilities / Other 28,211 49,650 44,039 2,548 (47,102) 2,548 Housing / Development 163,566 51,200 116,776 88,111 36,911 88,111 Grants / Donations 502,102 2,400 9,146 1,005,396 1,002,996 5,396 Special Activities 618,145 707,950 559,639 576,479 (131,471) 602,840 Library 101,942 97,283 114,476 101,677 4,394 111,677
Museum 16,939 4,000 11,212 8,073 4,073 8,073
Police 395,004 455,275 464,387 467,503 12,228 467,503
Recreation 144,946 101,000 135,093 139,996 38,996 148,431 Fire 29,729 27,200 25,709 24,575 (2,625) 24,575
Streets 1,711,967 2,247,695 2,257,717 1,619,540 (628,155) 1,612,195 Total Special Revenue Funds 3,813,083 3,806,653 3,803,603 4,083,069 276,416 3,120,519 Total Revenues - All Funds $ 46,326,447 $ 45,370,293 $ 46,249,366 $ 45,595,965 $ 45,504,122 225,672 $ Fund
72%
9%
4%
6% 9%
Revenues by Major Fund / Fund Type FY 2025-26
General $32.7 million
Sewer $4.1 million
Internal Service $2.0 million
Other Enterprise $2.5 million
Other Funds $4.2 million
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City of Pacific Grove Budget
Expenses by Fund - All Funds
Through Fiscal Year 2026-27
The table below shows the expenditure trends for the General Fund and all funds for the next few fiscal years.

FY 23/24
Actual
FY 24/25
Budget
FY 24/25
Estimated
FY 25/26
Estimated
Variance CY
Budget
FY 26/27
Estimated
General Fund - Main Fund $29,439,586 $ 34,049,158 $ 32,626,087 $ 33,571,522 $ (477,636) $35,046,464 Total General Fund 29,439,586 34,049,158 32,626,087 33,571,522 (477,636) 35,046,464 General Fund CIP 562,432 1,937,033 1,937,033 650,000 (1,287,033) 850,000 Total Capital Improvement Funds 562,432 1,937,033 1,937,033 650,000 (1,287,033) 850,000 Cemetery Endowment - - - - - -
Library Endowment - - - - - -
Yount Trust - - - - - -
Total Permanent Funds - - - - - -
Employee Benefits 282,458 332,000 359,082 312,700 (19,300) 373,485 Workers Compensation 651,041 735,949 903,326 916,948 180,999 975,966 Liability Insurance 464,021 717,003 703,552 882,167 165,164 957,102 Total Internal Service Funds 1,397,519 1,784,952 1,965,959 2,111,815 326,863 2,306,553 Cemetery 559,532 720,349 707,011 848,109 127,760 899,192 Golf 485,080 755,057 953,833 1,026,682 271,625 987,833
Local Water Project 972,048 1,010,925 1,407,077 1,025,105 14,180 1,066,388 Sewer 1,588,358 6,032,635 5,992,306 3,920,269 (2,112,366) 10,317,679 Total Enterprise Funds 3,605,018 8,518,966 9,060,227 6,820,166 (1,698,800) 13,271,092 American Rescue Plan Funds 228,414 828,872 910,564 (828,872) State Franchise PEG 26,000 81,000 82,000 120,000 39,000 60,000 City Facilities / Other 17,387 65,000 65,000 48,003 (16,997) Housing / Development 102,088 317,718 331,467 464,284 146,566 206,852 Grants / Donations 489,754 1,075,000 1,075,000
Special Activities 601,823 658,593 597,198 578,950 (79,643) 605,310 Library 85,290 100,571 95,571 87,400 (13,171) 70,400
Museum Improvement 165,800 165,800 (165,800)
Police 729,964 776,297 693,650 842,209 65,912 823,182
Recreation 110,814 141,500 131,146 187,908 46,408 141,946 Fire 5,527 46,080 46,080 100,000 53,920 12,880
Streets 1,375,912 3,773,841 3,737,819 1,909,283 (1,864,558) 1,754,452 Total Special Revenue Funds 3,772,973 6,955,272 6,856,295 5,413,037 (1,542,235) 3,675,022 Total Expenditures - All Funds $38,777,529 $53,245,381 $ 52,445,601 $48,566,541 $ (4,678,840) $55,149,131 Fund
69%
8%
4%
6%
13%
Expenses by Major Fund / Fund Type FY 2025-26
General $33.6 million
Sewer $3.9 million
Internal Service $2.1 million
Other Enterprise $2.9 million
Other Funds $6.1 million
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Fund Balance / Working Capital Estimates - Fiscal Year 2024-25 City of Pacific Grove Budget Fund Balance / Working Capital Estimates
Fiscal Year 2024-25
The table below shows a financial summary for the General Fund and all funds for the fiscal year noted above.

Beginning
Fund
Balance
Projected
Revenues
Projected
Transfers In
Projected
Expenses
Projected
Transfers
Out
Change for
Fiscal Year
Projected
Ending
Balance
General Fund $17,396,190 $ 33,433,785 $ 32,626,087 $ 4,222,220 (3,414,522) $13,981,668 Pension Reserve $ 500,000 500,000 500,000
General Fund 17,396,190 33,433,785 500,000 32,626,087 4,222,220 (2,914,522) 14,481,668 General Fund CIP 361,196 9,281 3,017,033 1,937,033 1,089,281 1,450,477 Capital Projects Fund 361,196 9,281 3,017,033 1,937,033 1,089,281 1,450,477 Employee Benefits 159,520 278,379 359,082 (80,703) 78,817 Liability Insurance 744,877 731,511 903,326 (171,815) 573,062 Workers Compensation 603,210 755,478 703,552 51,926 655,136 Internal Service Funds 1,507,607 1,765,368 1,965,959 (200,591) 1,307,016 Library 565,637 18,252 18,252 583,889
Cemetery 2,145,254 119,776 119,776 2,265,030
Yount 781,371 8,000 8,000 781,371
Permanent Funds 3,492,262 146,028 8,000 138,028 3,630,290 Cemetery 1,100,618 633,098 707,011 (73,913) 1,026,705
Golf 867,594 952,920 953,833 (913) 866,681
Local Water Project 42,876 1,157,177 375,187 1,407,077 350,000 (224,713) (181,837) Sewer 8,537,880 4,348,106 350,000 5,992,306 (1,294,200) 7,243,680 Enterprise Funds 10,548,968 7,091,300 725,187 9,060,227 350,000 (1,593,740) 8,955,228 American Rescue Plan 895,169 15,395 910,564 (895,169) (0) Special Activities 182,753 559,639 597,198 (37,559) 145,194 Museum 344,823 11,212 165,800 (154,588) 190,235
Library 260,992 114,476 95,571 18,905 279,897
Recreation 311,569 135,093 131,146 3,947 315,516
Police 164,599 464,387 330,000 693,650 100,736 265,335
Fire 195,633 25,709 46,080 (20,371) 175,262
Streets 1,943,221 2,257,717 3,737,819 (1,480,102) 463,119 Housing/Development 1,249,140 116,776 331,467 (214,691) 1,034,449 Grants 183,779 9,146 9,146 192,925
Cable Franchise PEG 116,177 50,015 82,000 (31,985) 84,192 City Facilities 108,848 44,039 8,000 65,000 (12,961) 95,887 Special Revenue Funds 5,956,702 3,803,603 338,000 6,856,295 (2,714,692) 3,242,011 Total All Funds $ 39,262,925 $ 46,249,366 4,580,220$ $ 52,445,601 4,580,220$ $ (6,196,235) $ 33,066,690 Fund
44%
22%
4%
5%
25%
Reserves by Major Fund / Fund Type FY 2024-25
General / Pension Trust $14.5 million
Sewer $7.2 million
Internal Service $1.3 million
Other Enterprise $1.7 million
Other Funds $8.3 million
PG FY 25-26 and FY 26-27 Budget 35 PGCC 6-18-25

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Fund Balance / Working Capital Estimates - Fiscal Year 2024-25 City of Pacific Grove Budget Fund Balance / Working Capital Estimates
Fiscal Year 2025-26
The table below shows a financial summary for the General Fund and all funds for the fiscal year noted above.

Beginning
Fund
Balance
Proposed
Revenues
Proposed
Transfers In
Proposed
Expenses
Proposed
Transfers
Out
Change for
Fiscal Year
Projected
Ending
Balance
General Fund $13,981,668 $ 32,729,400 $33,571,522 $ 1,117,600 $ (1,959,722) $12,021,945 Pension Reserve 500,000 $ 25,000 25,000 525,000
General Fund 14,481,668 32,729,400 25,000 33,571,522 1,117,600 (1,934,722) 12,546,945 General Fund CIP 1,450,477 6,682 500,000 650,000 (143,318) 1,307,159 Capital Projects Fund 1,450,477 6,682 500,000 650,000 (143,318) 1,307,159 Employee Benefits 78,817 316,299 312,700 3,599 82,416
Liability Insurance 573,062 925,299 916,948 8,351 581,413 Workers Compensation 655,136 753,944 882,167 (128,223) 526,914 Internal Service Funds 1,307,016 1,995,542 2,111,815 (116,273) 1,190,743 Library 583,889 13,141 13,141 597,030
Cemetery 2,265,030 121,734 121,734 2,386,765
Yount 781,371 8,000 8,000 781,371
Permanent Funds 3,630,290 142,876 8,000 134,876 3,765,166 Cemetery 1,026,705 580,902 848,109 (267,207) 759,498
Golf 866,681 956,538 1,026,682 (70,144) 796,538
Local Water Project (181,837) 1,001,146 287,600 1,025,105 263,641 81,803 Sewer 7,243,680 4,099,809 3,920,269 25,000 154,540 7,398,220 Enterprise Funds 8,955,228 6,638,396 287,600 6,820,166 25,000 80,830 9,036,058 Special Activities 145,194 576,479 578,950 (2,471) 142,723 Museum 190,235 8,073 8,073 198,308
Library 279,897 101,677 87,400 14,277 294,174
Recreation 315,516 139,996 187,908 (47,912) 267,604
Police 265,335 467,503 330,000 842,209 (44,706) 220,629 Fire 175,262 24,575 100,000 (75,425) 99,837
Streets 463,119 1,619,540 1,909,283 (289,743) 173,376
Housing / Development 1,034,449 88,111 464,284 (376,173) 658,277 Grants 192,925 1,005,396 1,075,000 (69,604) 123,321
Cable Franchise PEG 84,192 49,171 120,000 (70,829) 13,363 City Facilities 95,887 2,548 8,000 48,003 (37,455) 58,432 Special Revenue Funds 3,242,011 4,083,069 338,000 5,413,037 (991,968) 2,250,043 Total All Funds $ 33,066,690 $ 45,595,965 1,150,600$ $ 48,566,541 1,150,600$ $ (2,970,576) $ 30,096,114 Fund
42%
25%
4%
5%
24%
Reserves by Major Fund / Fund Type FY 2025-26
General / Pension Trust $12.5 million
Sewer $7.4 million
Internal Service $1.2 million
Other Enterprise $1.6 million
Other Funds $7.3 million
PG FY 25-26 and FY 26-27 Budget 36 PGCC 6-18-25

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Fund Balance / Working Capital Estimates - Fiscal Year 2024-25 City of Pacific Grove Budget Fund Balance / Working Capital Estimates
Fiscal Year 2026-27
The table below shows a financial summary for the General Fund and all funds for the fiscal year noted above. The table below shows a financial summary for the General Fund and all funds for the fiscal year noted above.

Beginning
Fund
Balance
Proposed
Revenues
Proposed
Transfers In
Proposed
Expenses
Proposed
Transfers
Out
Change for
Fiscal Year
Projected
Ending
Balance
General Fund $12,021,945 $ 33,302,700 $ 35,046,464 $ 830,000 $ (2,573,764) $ 9,448,181 Pension Reserve 525,000 $ 25,000 25,000 550,000
General Fund 12,546,945 33,302,700 25,000 35,046,464 830,000 (2,548,764) 9,998,181 General Fund CIP 1,307,159 6,682 500,000 850,000 (343,318) 963,842 Capital Projects Fund 1,307,159 6,682 500,000 850,000 (343,318) 963,842 Employee Benefits 82,416 377,424 373,485 3,939 86,355
Liability Insurance 581,413 1,000,299 975,966 24,333 605,746 Workers Compensation 526,914 918,944 957,102 (38,158) 488,756 Internal Service Funds 1,190,743 2,296,667 2,306,553 (9,886) 1,180,857 Library 597,030 13,141 13,141 610,172
Cemetery 2,386,765 129,319 129,319 2,516,084
Yount 781,371 8,000 8,000 781,371
Permanent Funds 3,765,166 150,460 8,000 142,460 3,907,626 Cemetery 759,498 548,988 899,192 (350,205) 409,293
Golf 796,538 977,149 987,833 (10,684) 785,854
Local Water Project 81,803 1,001,146 1,066,388 (65,242) 16,561 Sewer 7,398,220 4,099,809 10,317,679 25,000 (6,242,870) 1,155,350 Enterprise Funds 9,036,058 6,627,092 13,271,092 25,000 (6,669,000) 2,367,058 Special Activities 142,723 602,840 605,310 (2,470) 140,253 Museum 198,308 8,073 8,073 206,380
Library 294,174 111,677 70,400 41,277 335,451
Recreation 267,604 148,431 141,946 6,485 274,089
Police 220,629 467,503 330,000 823,182 (25,679) 194,949 Fire 99,837 24,575 12,880 11,695 111,532
Streets 173,376 1,612,195 1,754,452 (142,257) 31,119
Housing / Development 658,277 88,111 206,852 (118,741) 539,536 Grants 123,321 5,396 5,396 128,718
Cable Franchise PEG 13,363 49,171 60,000 (10,829) 2,534 City Facilities 58,432 2,548 8,000 10,548 68,980
Special Revenue Funds 2,250,043 3,120,519 338,000 3,675,022 (216,502) 2,033,541 Total All Funds $ 30,096,114 $ 45,504,122 863,000$ 55,149,131 $ 863,000$ (9,645,010) $ $ 20,451,105 Fund
49%
5% 6%
6%
34%
Reserves by Major Fund / Fund Type FY 2026-27
General / Pension Trust $10.0 million
Sewer $1.2 million
Internal Service $1.2 million
Other Enterprise $1.2 million
Other Funds $6.9 million
PG FY 25-26 and FY 26-27 Budget 37 PGCC 6-18-25

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City of Pacific Grove Budget
General Fund
Main Fund - Fund 01
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Property Taxes $ 10,001,562 $10,296,000 $10,519,100 $10,931,300 $ 635,300 $11,360,000 TOT & Licenses 6,820,365 7,012,000 6,736,700 6,736,700 (275,300) 6,938,800 Sales & Use Tax 5,975,031 6,094,000 5,945,600 5,945,600 (148,400) 6,005,200 Utility Users Tax 2,118,069 2,043,000 2,155,500 2,183,500 140,500 2,212,700 Franchise Tax 1,635,967 1,659,000 1,582,400 1,603,400 (55,600) 1,625,700 Business License 607,647 393,000 393,000 393,000 - 404,800 Other Taxes 159,401 240,000 113,100 117,600 (122,400) 122,300 Intergovernmental Revenues 296,788 61,000 100,798 96,900 35,900 96,900 License, permits, and impact fees 1,260,969 1,274,000 973,500 1,013,100 (260,900) 1,043,400 Charges for Service 2,030,259 2,278,840 2,032,987 2,049,900 (228,940) 2,089,400 Interest, Rents and Concessions 1,074,388 630,000 747,600 619,700 (10,300) 623,500 Other Revenues 1,218,342 1,267,187 2,120,000 999,700 (267,487) 741,000 Fines and Forfeitures 36,868 115,000 13,500 39,000 (76,000) 39,000 Transfers In 3,359 - - - - -
Total Revenues / Transfers 33,239,014 33,363,027 33,433,785 32,729,400 (633,627) 33,302,700 Expenses / Transfers
Regular Salaries and Benefits 11,926,895 14,135,011 13,075,767 14,779,664 644,653 15,432,414 Debt Services & Obligations 1,423,872 1,462,562 1,462,562 1,512,562 50,000 1,557,562 Services and Supplies 10,342,411 12,764,625 12,499,274 10,798,277 (1,966,348) 11,168,257 Non-Operating Transfers 1,252,183 4,222,220 4,222,220 1,117,600 (3,104,620) 830,000 Internal Service Charges 1,483,000 1,090,000 1,090,000 1,364,000 274,000 1,632,000 Pension - Unfunded Liability 4,006,443 4,212,163 4,212,163 4,747,019 534,856 5,030,731 Capital Outlay 256,965 384,797 286,322 370,000 (14,797) 225,500 Total Expenses / Transfers 30,691,769 38,271,378 36,848,307 34,689,122 (3,582,256) 35,876,464 Net Change 2,547,244 (4,908,351) (3,414,522) (1,959,722) (2,573,764) Available Ending Reserves $ 17,396,190 $12,487,839 $13,981,668 $12,021,945 $ 9,448,181 Reserve % 36% 42% 36% 27%
Overview / Analysis: The General Fund accounts for all of the City's activities not accounted for in the City's other funds.

Funds in the General Fund are mostly unrestricted in nature and can be used for the most part for any purpose, including providing subsidies and short-term loans for City's other funds as needed. $33.2
$33.4
$32.7
$33.3
$30.7
$36.8
$34.7
$35.9
2023-24
2024-25
2025-26
2026-27 In Millions
Revenues vs Expenses
Expenses Revenues
$17.4
$14.0
$12.0
$9.4
2023-24
2024-25
2025-26
2026-27 In Millions
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 38 PGCC 6-18-25

Page 158 ends

City of Pacific Grove Budget Dept Administrator
Internal Service Funds Administrative Services -
Employee Benefits - Fund 70 Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Charges for Services $ 343,739 $ 262,000 $ 273,797 $ 313,000 $ 51,000 $ 374,125 Interest Income 4,582 3,000 4,582 3,299 299 3,299
Total Revenues 348,321 265,000 278,379 316,299 51,299 377,424 Expenses
Employee Benefits 200,218 245,000 261,980 224,200 (20,800) 282,485 Other Expenses 82,240 87,000 97,102 88,500 1,500 91,000 Total Expenses 282,458 332,000 359,082 312,700 (19,300) 373,485 Net Change 65,863 (67,000) (80,703) 3,599 70,599 3,939
Available Ending Reserves $ 159,520 $ 92,520 $ 78,817 $ 82,416 $ (10,104) $ 86,355 Overview: The Employee Benefits Fund accounts are for the accumulation of contributions from departmental payroll accounts to fund and pay for a variety of employee benefit costs such as retiree health, dental, unemployment insurance, life/disability insurance, and temporary employee social security replacement costs. Each department's internal service charges are based on their estimated utilization of benefits, with revenues to cover unemployment insurance costs transferred based on a percentage of employee salaries.
$348
$278
$316
$377
$282
$359
$313
$373
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses Revenues
$160
$79
$82
$86
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 39 PGCC 6-18-25

Page 159 ends

City of Pacific Grove Budget Dept Administrator
Internal Service Funds Administrative Services -
Liability Insurance - Fund 72 Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Charges for Services $ 1,137,962 $ 750,000 $ 750,000 $ 750,000 -$ 915,000 $ Interest Income 5,478 2,000 5,478 3,944 1,944 3,944
Transfer In - - - - - -
Total Revenues 1,143,440 752,000 755,478 753,944 1,944 918,944 Expenses
Salaries and Benefits (139,800) 49,803 44,038 64,967 15,164 66,902 Insurance Claims (90,909) 113,000 88,000 100,000 (13,000) 115,000 Insurance Premiums 468,430 515,000 557,706 677,000 162,000 734,000 Other Expenses 226,300 39,200 13,808 40,200 1,000 41,200 Total Expenses 464,021 717,003 703,552 882,167 165,164 957,102 Net Change 679,419 34,997 (128,223) 51,926 (163,220) (38,158) Available Ending Reserves $ 603,210 $ 638,207 $ 655,136 $ 526,914 (111,293)$ $ 488,756 Reserve Target (75% Claim Liab.) $ 300,000 $ 27,000 $ 27,000 $ 27,000 $ 27,000 Overview: The Liability Insurance Fund accounts are for contributions from departmental budgets to cover the cost of general liability claims, related legal costs, and the annual premiums required to participate in an insurance program through the California Joint Powers Insurance Authority (CJPIA). The amount of contributions from each department was based on their proportional share of the overall budget. $464
$704
$882
$957
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
$603 Revenues
$655
$527
$489
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
The City participates in the excess liability program offered by the JPA. Coverage in this program includes bodily injury, personal injury, or property damage to a third party resulting from a member activity, including automobile liability.

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

The excess liability program provides for optional member-retained limits of $150k, $250k, $500k, $750k, or $1 million.

This program has a coverage limit of $50 million per occurrence, and is funded at the 70% – 80% confidence level.

Members retain settlement authority over claims within their layer, except for certain defined claim types that have catastrophic potential.

PG FY 25-26 and FY 26-27 Budget 40 PGCC 6-18-25

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City of Pacific Grove Budget Dept Administrator
Internal Service Funds Administrative Services -
Workers Compensation - Fund 71 Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Charges for Services $ 547,462 $ 705,000 710,454$ 910,138$ $ 205,138 $ 985,138 Transfer In - - - - - -
Interest Income 21,057 17,113 21,057 15,161 (1,952) 15,161 Total Revenues 568,519 722,113 731,511 925,299 203,186 1,000,299 Expenses
Salaries and Benefits (98,917) 55,949 18,694 72,948 16,999 75,966 Insurance Claims 451,118 350,000 600,000 500,000 150,000 525,000 Insurance Premiums 287,582 305,000 277,919 319,000 14,000 350,000 Other Expenses 11,259 25,000 6,713 25,000 - 25,000
Total Expenses 651,041 735,949 903,326 916,948 180,999 975,966 Net Change (82,521) (13,836) (171,815) 8,351 22,187 24,333 Available Ending Reserves $ 744,877 $ 731,041 573,062$ 581,413$ $ (149,628) $ 605,746 Reserve Target (75% Claim Liab.) $ 294,000 $ 329,000 329,000$ 329,000$ N/A 329,000 $ Overview: The Workers Compensation Fund is an internal service fund. The City applies workers compensation rates to employee payroll records based on the classification of each position. The resulting bi-weekly contribution, along with claim reimbursements contribute to the Workers Compensation Fund revenues. Any excess or deficiency between the Fund’s projected revenues and expenses are supplemented through a separate internal service charge. This difference is charged to departments based on their proportional share of claims that have occurred over prior years. All Workers Compensation Fund revenues are used to cover the cost of program administration, claims expense, legal costs, injury and illness prevention programs; and the annual premium required to participate in California Joint Powers Insurance Authority. $569
$732
$925
$1,000
$651
$903
$917
$976
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
$745 Revenues
$573
$581
$606
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 41 PGCC 6-18-25

Page 161 ends

City of Pacific Grove Budget Dept Administrator
Enterprise Funds Public Works
Cemetery - Fund 75
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Sales and Services $ 716,931 $ 625,000 $ 600,960 $ 557,763 (67,237)$ $ 525,848 Interest Income 47,725 28,000 32,138 23,139 (4,861) 23,139 Total Revenues / Transfers 764,656 653,000 633,098 580,902 (72,098) 548,988 Expenses
Salaries and Benefits 164,940 315,699 280,273 350,409 34,710 367,822 Service and Supplies 291,189 254,150 269,390 342,000 87,850 360,450 Capital Outlay / Improvements 3,175 - 6,670 3,500 3,500 3,500 Transfers Out - - - - - -
Indirect Cost Allocation 99,000 149,000 149,000 149,000 - 163,900 Other Expenses 1,227 1,500 1,678 3,200 1,700 3,520
Total Expenses 559,532 720,349 707,011 848,109 127,760 899,192 Net Change 205,125 (67,349) (73,913) (267,207) (199,858) (350,205) Available Ending Reserves $ 1,100,618 $ 1,033,269 $ 1,026,705 759,498$ (273,771)$ 409,293$ Overview:

The City operates and maintains the El Carmelo Cemetery. The City coordinates with area mortuaries and other individuals for services at the cemetery. Some of current and future initiatives for the cemetery include: launching the Public Portal for the Cemetery website to provide genealogy information, as well as available data, considering and evaluating options for leasing or rental of the Little Chapel, and initiating RFP or work with a consultant on a Cemetery Master Plan. $765
$633
$581
$549
$560
$707
$848
$899
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses Revenues
$1.10
$1.03
$0.76
$0.41
2023-24
2024-25
2025-26
2026-27 In Millions
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 42 PGCC 6-18-25

Page 162 ends

City of Pacific Grove Budget Dept Administrator
Enterprise Funds Public Works
Golf - Fund 77
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues
Lease/Concession $ 745,216 758,000$ 931,082$ $ 940,815 $ 182,815 $ 961,426 Interest Income 92,410 4,000 21,838 15,723 11,723 15,723 Total Revenues 837,625 762,000 952,920 956,538 194,538 977,149 Expenses
Service and Supplies 196,971 355,000 553,776 606,585 251,585 607,736 Debt Service 262,163 272,057 272,057 272,097 272,097 40 Indirect Cost Allocation 10,000 20,000 20,000 20,000 - 20,000 Capital Contribution 88,000 88,000 88,000
Capital Improvements 108,000 15,946 108,000 40,000 (68,000) - Total Expenses 485,080 755,057 953,833 1,026,682 271,625 987,833 Net Change 352,546 6,943 (70,144) (913) (77,087) (10,684) Available Ending Reserves $ 867,594 874,537$ 866,681$ $ 796,538 $ (77,999) $ 785,854 Reserve Target (25% Revenues) $ 209,000 191,000$ 238,000$ $ 239,000 N/A 244,000 $ Debt Coverage (125%-Policy) 241% 142% 139% 100% N/A 100% Overview:

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

The City contracts the services of the golf course to CourseCo Inc. for the management and operations of the golf course and related facilities.

Golf operations are funded entirely through golf fee revenues.

CourseCo is responsible for managing:
• The 18-hole golf course
• Driving range
• Putting greens
• Clubhouse
$838
$953
$957
$977
$485
$954
$1,027
$988
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues $868
$867
$797
$786
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 43 PGCC 6-18-25

Page 163 ends

City of Pacific Grove Budget Dept Administrator
Enterprise Funds Public Works
Local Water Project - Fund 74
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Charges for Services $ 1,026,820 $ 930,000 $ 1,155,586 $ 1,000,000 $ 1,000,000 70,000 $ Transfers in 187,500 375,187 375,187 287,600 (87,587) - Interest / Other 3,113 5,000 1,591 1,146 (3,854) 1,146
Total Revenues / Transfers 1,217,433 1,310,187 1,532,364 1,288,746 (21,441) 1,001,146 Expenses / Transfers
Service and Supplies 766,270 804,476 1,200,629 818,657 14,181 859,940 Transfers Out - 350,000 350,000 - (350,000) -
Debt Service 205,778 206,449 206,448 206,448 206,448 (1) Total Expenses / Transfers 972,048 1,360,925 1,757,077 1,025,105 (335,820) 1,066,388 Net Change 245,385 (50,738) (224,713) 263,641 314,379 (65,242) Available Ending Reserves 42,876$ (7,862)$ (181,837)$ 81,803$ 89,665$ 16,561$ Debt Coverage (125%-Policy) 121% 96% 12% 140% 108%
Overview:

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

The City entered into an agreement with PERC Water to design and build the Local Water Project to replace approximately 123 acrefeet/year (.11 million gallons annual daily average) of irrigation demands with non-potable supplies for the irrigation of the Municipal Golf Links and the El Carmelo Cemetery and provide toilet flushing for two public restrooms. The transfers in shown below reflect the transfer of water entitlement sale revenue from the General Fund. This includes funds related to promissory note proceeds and some additional contributions. The transfer out reflects the repayment of the Sewer Interfund Loan.
$10
$20
$30
$63
$11
$21
$31
$53
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues
$43
$(182)
$82
$17
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
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City of Pacific Grove Budget Dept Administrator
Enterprise Funds Public Works
Sewer - Funds 76 and 78
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Sales and Services $ 3,829,192 $ 3,773,000 $ 4,102,537 $ 3,923,000 $ 150,000 $ 3,923,000 Transfers in - 350,000 350,000 - (350,000) -
Interest Income 248,341 128,000 245,569 176,809 48,809 176,809 Market Value Gain 119,882 - - - - -
Sewer Loans Revenues - - - - - -
Total Revenues / Transfers 4,197,415 4,251,000 4,698,106 4,099,809 (151,191) 4,099,809 Expenses / Transfers
Salaries and Benefits 150,802 952,515 912,186 1,153,686 201,171 1,212,097 Service and Supplies 1,074,743 1,212,794 1,212,794 1,275,769 1,315,769 62,975 Transfers Out - - - 25,000 25,000 25,000
Indirect Cost Allocations 276,000 353,000 353,000 353,000 - 353,000 Debt Service 86,814 89,689 89,689 87,814 (1,875) 86,813 Capital Improvements - 3,424,637 3,424,637 1,050,000 (2,374,637) 7,350,000 Sewer Loans Expenses - - - - - -
Total Expenses / Transfers 1,588,358 6,032,635 5,992,306 3,945,269 (2,087,366) 10,342,679 Net Change 2,609,057 (1,781,635) (1,294,200) 154,540 1,936,175 (6,242,870) Operations/Capital(76) 8,370,952 3,980,260 7,076,752 7,231,292 3,251,031 988,422 Lateral Loans (78) 166,928 166,928 166,928 166,928 - 166,928 Available Ending Reserves $ 8,537,880 $ 4,147,188 $ 7,243,680 $ 7,398,220 $ 3,251,031 $ 1,155,350 Reserve Target (2 Yr CIP) $ 500,000 $ 500,000 $ 8,400,000 $ 8,400,000 N/A 2,100,000 $ Debt Coverage (Min 125%) 3105% 1932% 2475% 1472% N/A 1375% Overview:

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

The City owns and maintains the sanitary sewer system that collects and delivers sewage to the Monterey One Water treatment facility. In addition to performing maintenance activities, the City also manages the Sewer Lateral Loan Program which provides low-interest loans of up to $10,000 to repair or replace private sewer lateral facilities. It should also be noted that the revenues for this fund were also pledged as collateral for the State Loan received by the Local Water Project Fund.
$4.2
$4.7
$4.1
$4.1
$1.6
$6.0
$3.9
$10.3
2023-24
2024-25
2025-26
2026-27 In Millions
Revenues vs Expenses
Expenses
$8.5 Revenues
$7.2
$7.4
$1.2
2023-24
2024-25
2025-26
2026-27 In Millions
Ending Available Reserves
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City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Public Works
City Facilities
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Budget
Variance
2026-27
Budget
Revenues / Transfers
Carillon $ 796 $ 150 $ 490 $ 353 $ 203 $ 353
Chautaqua Hall 1,225 - 754 543 543 543
Yount Income 9,068 8,500 8,674 8,485 8,485 (15)
Strong Disbursement 14,459 40,500 40,500 - (40,500) -
McIndoo 2,664 500 1,621 1,167 667 1,167
Total Revenues / Transfers 28,211 49,650 52,039 10,548 (39,102) 10,548 Expenses / Transfers
Carillon - - - - - -
Chautaqua Hall - - - - - -
Yount Income - - - 24,997 24,997 -
Strong Disbursement - 65,000 65,000 - (65,000) -
McIndoo 17,387 - - 23,006 23,006 -
Total Expenses / Transfers 17,387 65,000 65,000 48,003 (16,997) - Net Change 10,824 (15,350) (12,961) (37,455) (22,105) 10,548 Ending Available Reserves
Carillon (03) 10,421 10,571 10,911 11,264 11,617 693
Chautaqua Hall (26) 16,022 16,022 16,776 17,319 1,297 17,862 Yount Income (41) 16,408 24,908 25,082 8,570 (16,338) 17,056 Strong Disbursement (46) 43,864 19,364 19,364 19,364 - 19,364 McIndoo (92) 22,133 22,633 23,754 1,915 (20,718) 3,082
Available Ending Reserves $ 108,848 93,498$ $ 95,887 $ 58,432 $ (35,066) $ 68,980 Overview: This fund in the ACFR combines smaller funds in this category, including:

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

Chautauqua Hall (Fund 26) - was built in 1881 and was designated a State Historical Landmark.

The fund accounts for donations received for building maintenance.

Yount Income (Fund 41) - accounts for interest income from a non-expendable trust fund. to support beautification of the City and minor improvements to education and/or recreational facilities.

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

McIndoo Donation (Fund 92) - accounts for the receipt of a donation from the Jeanette J. Mclndoo Trust for enhancement of public facilities and grounds.
$96
$58
$69
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
$65
$48
$-
$52
$11
$11
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues
PG FY 25-26 and FY 26-27 Budget 46 PGCC 6-18-25

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City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Fire
Fire Emergency Equipment
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Interest Income 6,354$ 3,200$ 6,354$ 4,575$ 1,375$ 4,575$ Other Revenue 23,376 24,000 19,355 20,000 (4,000) 20,000 Total Revenues / Transfers 29,729 27,200 25,709 24,575 (2,625) 24,575 Expenses / Transfers
Services - - - - - -
Supplies 5,527 12,880 12,880 - (12,880) 12,880
Capital Outlay - 33,200 33,200 100,000 66,800 -
Total Expenses / Transfers 5,527 46,080 46,080 100,000 53,920 12,880 Net Change 24,203 (18,880) (20,371) (75,425) (56,545) 11,695 Available Ending Reserves
Fire Emergency Equipment (12) 195,633$ 176,753$ 175,262$ 99,837$ (76,916)$ 111,532$ Available Ending Reserves 195,633$ 176,753$ 175,262$ 99,837$ (76,916)$ 111,532$ Overview: This fund accounts are for grants, fees, and donations in support of activities and equipment. $30
$26
$25
$25
$6
$46
$100
$13
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues
$196
$175
$100
$112
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
PG FY 25-26 and FY 26-27 Budget 47 PGCC 6-18-25

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City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Administrative Services
Grants and Donations Finance
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Grants
Operating Grants $ 487,421 -$ 1,651 $ -$ -$ -$
Operating Donations 5,335 2,400 1,002,365 3,285 999,965 2,365 Coastal Conservancy Grant 6,839 - 4,210 3,031 3,031 3,031 ASBS 2,507 - - - - -
Total Revenues / Transfers 502,102 2,400 1,005,396 9,146 1,002,996 5,396 Expenses / Transfers
Operating Grants 489,754 - - - - -
Operating Donations - - - 1,075,000 1,075,000 -
Coastal Conservancy Grant - - - - - -

ASBS - - - - - -
Total Expenses / Transfers 489,754 - - 1,075,000 1,075,000 - Ending Available Reserves
Operating Grants (30) (1,651) (1,651) - - 1,651 -
Operating Donations (31) 69,810 72,210 73,095 (71,750) 460 2,825 Coastal Conservancy Grant (69) 89,483 89,483 93,693 96,724 7,241 99,755 ASBS (79) 26,137 26,137 26,137 26,137 - 26,137
Available Ending Reserves $ 186,179$ 183,779 $ 192,925 123,321$ (62,858) $ 128,718 Overview: This combined fund in the ACFR includes :

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

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

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

Areas of Special Biological Significance (ASBS) (Fund 79) - accounts for grants from Proposition 84 through the State Water Resources Control Board (SWRCB) to fund a variety of water quality improvement projects.
$502
$9
$1,005
$5
$490
$-
$1,075
$-
2023-24
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
$184 Revenues
$193
$123
$129
2023-24
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
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City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Community Development
Housing and Community Development
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Housing $ 68,734 $ 27,000 $ 36,295 $ 26,132 (868) 26,132 $ Senior Housing 856 - 527 379 379 379
CDBG 50,473 10,000 40,936 29,474 19,474 29,474
CalHome Reuse 35,273 4,000 31,172 22,444 18,444 22,444
General Plan Maint. 8,230 10,200 7,846 9,681 (519) 9,681 Total Revenues / Transfers 163,566 51,200 116,776 88,111 36,911 88,111 Expenses / Transfers
Housing 137,062 273,718 115,867 156,883 (116,835) 162,852 Senior Housing - - - - - -
CDBG (67,524) 20,000 191,600 283,401 263,401 20,000
CalHome Reuse - 24,000 24,000 24,000 - 24,000
General Plan Maint. 32,550 - - - - -
Total Expenses / Transfers 102,088 317,718 331,467 464,284 146,566 206,852 Net Change 61,478 (266,518) (214,691) (376,173) (109,655) (118,741) Ending Available Reserves
Housing (15) 382,002 135,284 302,430 171,680 36,396 8,828 Senior Housing (28) 11,194 11,194 11,721 12,100 906 38,233 CDBG (34) 580,244 570,244 429,580 175,653 (394,591) 156,033 CalHome Reuse (36) 267,470 247,470 274,642 273,086 25,616 278,560 General Plan Maint. (55) 8,230 18,430 16,076 25,757 7,327 48,201 Available Ending Reserves $ 1,249,140 $ 982,622 $ 1,034,449 $ (324,345)$ 658,277 $ 529,854 Overview: This fund combines some of the smaller restricted funds related to this category, including the following:

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

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

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

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

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

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

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City of Pacific Grove Budget Dept Administrator
Special Revenue Funds Library
Library
Category
2023-24
Actual
2024-25
Budget
2024-25
Estimated
2025-26
Budget
Variance
Budget to
Budget
2026-27
Budget
Revenues / Transfers
Library Building/Equipment $ 7,522 3,000$ $ 28,183 $ 17,292 14,292$ $ 27,292 Library Books 51,918 58,163 42,991 (16,009) 42,154 42,154 Poetry Promotion 42,502 36,120 43,302 42,232 6,112 42,232 Total Revenues / Transfers 101,942 97,283 114,476 101,677 4,394 111,677 Expenses / Transfers
Library Building/Equipment 71,410 38,000 38,000 45,000 7,000 28,000 Library Books 42,571 260 42,571 40,000 (2,571) 40,000
Poetry Promotion 13,620 20,000 15,000 (17,600) 2,400 2,400 Total Expenses / Transfers 100,571 85,290 95,571 (13,171) 87,400 70,400 Net Change 16,652 (3,288) 18,905 14,277 17,565 41,277
Ending Available Reserves
Library Building/Equipment (07)
72,346 37,346 62,529 34,821 (2,525) 34,113
Library Books (11) 39,310 54,902 39,730 (13,018) 41,884 44,037 Poetry Promotion (40) 149,336 165,456 177,638 217,470 52,014 257,302 Available Ending Reserves $ 260,992 257,704$ $ 279,897 $ 294,174 36,470$ $ 335,451 Overview: This fund combines some of the smaller
restricted funds related to this category, including the following:

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

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

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

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

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

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

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

Abandoned Vehicle Abatement (Fund 45) - Monterey County receives a $1 tax on vehicle registrations. The City is reimbursed based on each abandoned vehicle.
$265
$221
$195
2024-25
2025-26
2026-27 In Thousands
Ending Available Reserves
$794
$798
$798
$694
$842
$823
2024-25
2025-26
2026-27 In Thousands
Revenues vs Expenses
Expenses
Revenues
PG FY 25-26 and FY 26-27 Budget 52 PGCC 6-18-25

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Pacific Grove City CouncilJune 18, 2025

Pacific Grove City Council
June 18, 2025