CITY COUNCIL
ERRATA SHEET
CITY OF PACIFIC GROVE
300 Forest Avenue, Pacific Grove, California 93950
TO: HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: Sandra Kandell, City Clerk/DEI Coordinator
MEETING DATE: 02/18/2026
SUBJECT: City Council Meeting Agenda - Errata Sheet
Attached is additional information for your consideration at the February 18, 2026 City Council Meeting:
Agenda Item Information Provided/Corrected
8C FY26 Q2 Interim Financial Report Link was not working correctly and is now fixed. (See attachment for ease of reference.)
11A Service Agreement Between the City and the Elections Department as referenced in the Resolution. (See agreement attached.)
11B Wrong attachment to agenda item. (See proposed ordinance attached.)
Attachments
8C Attachment
11A Attachment
11B Attachment
City of Pacific Grove
California Interim Budget Status Report
For the Fiscal Year Ended June 30, 2026
City of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
www.cityofpacificgrove.org
Matthew Mogensen
City Manager
Table of Contents
Revenues by Fund ................................................. 3 Expenses by Fund ................................................. 4 General Fund Revenue and Expense Reports ....... 5
Enterprise Expense Funds Reports ........................ 8 Internal Service Expense Reports .......................... 9 Fund Numbers and Descriptions ......................... 10 General Fund Revenue Overview ........................ 11 Departmental Expenditure Overview .................. 12 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
Recreation: Robust and accessible activities
Infrastructure: Maintain community assets
Stewardship: Implement sustainable practices
Housing: Diversity affordable opportunities
City Council Fiscal Year 2025-26
Mayor: Nick Smith
Councilmembers: Joe Amelio, Mayor Pro Tempore
Cynthia Garfield
Lori McDonnell
Chaps Poduri
Tina Rau
Paul Walkingstick
The City of Pacific Grove
presents its interim financials
for Fiscal Year 2025-26.
This report presents the City’s
overall financial condition in
an easy to read format for all
users, focusing on major
revenues and expenses by
major fund type.
Summary of Annual Report
This report is an interim financial
update on the City’s various
funds, including its General,
Sewer, Local Water and
Cemetery funds, as presented in
more detail in the City’s adopted
budget for FY 2025-26.
Audit Opinion / Awards for Excellence
The City has received a “clean” unmodified audit
opinion for its prior audited financial reports, 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
City of Pacific Grove
Interim Financials
Fiscal Year 2025-26
Revenues by Fund - FY 2025-26 (Unaudited)
Through December 2025
50% of Budget Year Complete
Fund
Revised
Budget YTD
YTD % of
Budget Prior YTD
Projected
Change for
Fiscal Year
Projected
Ending
Reserves *
Main Fund - Fund 01 32,759,400 $ 15,923,268 $ 49% 16,159,860 $ (1,982,147) $ 15,468,441 $ Other Funds Included 1,027,610 139,144 14% 27,119 (110,640) 61,089 General Fund 33,787,010 16,062,412 48% 16,186,979 (2,092,787) 15,529,530 Capital Projects 506,682 $ 414,521 $ 82% 434,475 $ (959,003) 1,428,690 Capital Funds 506,682 414,521 82% 434,475 (959,003) 1,428,690 Local Water Project 1,288,746 852,745 66% 904,380 263,641 (127,082) Cemetery 580,902 239,567 41% 322,488 (267,207) 766,398
Sewer 4,099,809 1,468,432 36% 474,059 (2,157,874) 7,952,625 Golf 956,538 255,565 27% 229,922 (70,144) 881,890
Sewer Lateral Loans 3,908 2,568 66% 6,652 3,908 185,482 Enterprise Funds 6,929,903 2,818,877 41% 1,937,501 (2,227,676) 9,659,313 Employee Benefit 316,299 153,516 49% 134,210 3,599 65,661 Worker's Compensation 925,299 595,216 64% 358,640 8,351 614,952 Liability Insurance 753,944 390,950 52% 385,072 (128,223) 930,712 Internal Service Funds 1,995,542 1,139,682 57% 877,922 (116,273) 1,611,326 Library 13,141 8,555 65% 22,537 13,141 610,620
Cemetery 121,734 53,739 44% 109,019 121,734 2,411,891
Yount 8,000 - 0% 23,292 - 807,008
Trust Funds 142,875 62,294 44% 154,848 134,875 3,829,519 Library / Poetry 101,677 66,137 65% 73,994 14,277 332,397 Museum 8,073 3,998 50% 12,429 (8,927) 289,456
Public Safety 821,890 385,029 47% 381,597 (120,319) 458,245 Housing 48,956 31,273 64% 25,725 (131,927) 531,633
Streets 1,935,351 384,901 20% 747,344 (2,294,918) (348,907) Lighthouse 126,917 63,093 50% 68,104 (60,966) 163,206
Community Development/CDBG 41,957 13,789 33% 30,593 (241,444) 477,797 ARPA - - 0% 29,269 - 73,216
Downtown/Hospitality Districts 561,700 289,087 51% 291,468 - 58,804 Cable Franchise / Other 62,750 111,019 177% 97,423 (118,441) 251,833 Other Funds 3,709,271 1,348,326 36% 1,757,946 (2,962,665) 2,287,680 Totals All Funds 47,071,283 $ 21,846,112 $ 46% 21,349,671 $ (8,223,529) $ 34,346,058 $ * Excludes Proposed Adjustments and Rollovers
Revenues Working Capital
Analysis: Q2 Revenues are slightly lower than budget primarily due to low Measure X and Golf concession receipts, both of which the majority are received in Q3. 48%
82%
41%
57%
44%
36%
46%
General Fund
Capital Funds
Enterprise Funds
Internal Service Funds
Trust Funds
Other Funds
Totals All Funds
Budgeted Revenues / YTD % of Budget - By Fund Type
Fund
Main Fund - Fund 01
Other Funds Included
General Fund
Capital Projects
Capital Funds
Local Water Project
Cemetery
Sewer
Golf
Sewer Lateral Loans
Enterprise Funds
Employee Benefit
Worker's Compensation
Liability Insurance
Internal Service Funds
Library
Cemetery
Yount
Trust Funds
Library / Poetry
Museum
Public Safety
Housing
Streets
Lighthouse
Community Development/CDBG
ARPA
Downtown/Hospitality Districts
Cable Franchise / Other
Other Funds
Totals All Funds
Expenses by Fund - FY 2025-26 (Unaudited)
Through December 2025
50% of Budget Year Complete
Revised
Budget YTD
YTD % of
Projected
Purchase
Orders
YTD %
with POs Prior YTD
$ 15,987,637 34,741,547 $ 46% 5,014,648 $ 60% 16,238,061 $ 2,614 1,138,250 0% 11,000 1% 12,933
15,990,251 35,879,797 45% 5,025,648 59% 16,250,994
$ 368,394 1,465,685 $ 25% - $ 25% 407,016 $
368,394 1,465,685 25% - 25% 407,016
446,228 1,025,105 44% 260,541 69% 969,444
423,317 848,109 50% 21,401 52% 362,006
1,378,554 6,257,683 22% 2,087,049 55% 1,887,527
698,458 1,026,682 68% - 68% 425,245
- - 0% - 0% -
2,946,557 9,157,579 32% 2,368,991 58% 3,644,222
153,064 312,700 49% - 49% 208,363
480,016 916,948 52% - 52% 623,812
639,502 882,167 72% 5,446 73% 642,631
1,272,582 2,111,815 60% 5,446 61% 1,474,806
- - 0% - 0% -
- - 0% - 0% -
4,000 8,000 50% - 50% 6,637
4,000 8,000 50% - 50% 6,637
87,400 38,800 44% 13,033 59% 19,962
17,000 40,749 200% - 200% 58,809
942,209 447,379 47% 128,833 61% 453,667
180,883 45,553 25% - 25% 55,570
4,230,269 867,473 21% 608,903 35% 739,558
187,883 52,946 28% - 28% 59,156
283,401 15,066 5% 39,000 19% 12,615
- - 0% - 0% 709,185
561,700 263,387 47% - 47% 185,977
181,191 62 0% 2,200 1% 97,493
1,771,415 6,671,936 27% 791,969 38% 2,391,992
$ 22,353,199 55,294,812 $ 40% 8,192,054 $ 55% 24,175,667 $ Expenses
Analysis: Q2 Expenses are slightly lower than budget. Individually significant items are as follows:
Sewer: $2.1M CIP budget rollover with minimal expenditures in the current year.
Streets: $1.0M CIP budget rollover with slightly lower CY expenditures compared to PY.
RMRA: $386k CIP budget rollover with no expenditures in the current year.
Capital Projects: $815k CIP budget rollover, expenditures are around 50% of original budget. 45%
25%
32%
60%
50%
27%
40%
General Fund
Capital Funds
Enterprise Funds
Internal Service Funds
Trust Funds
Other Funds
Totals All Funds
Budgeted Expenses / YTD % of Budget By Fund Type
General Fund Revenues - FY 2025-26 (Unaudited)
Through December 2025
50% of Budget Year Complete
Revenue Account Revised Budget YTD Revenues
YTD % of
Budget
Year End
Projection
Prior YTD
Revenues
Prior YTD %
of PY Actual
Property Taxes 11,022,700 $ 6,144,359 $ 56% 10,599,000 5,875,919 55% Sales Taxes 6,353,575 2,372,293 37% 6,457,000 2,195,542 35% Business License/Cannabis Taxes 1,214,530 506,880 42% 1,412,000 250,586 84% Franchise Taxes 1,650,400 312,593 19% 1,704,000 300,113 19% Utility User Taxes 2,183,500 893,321 41% 1,916,000 987,804 41% Transient Occupancy Tax 7,239,984 3,354,131 46% 7,155,000 3,155,220 45% Litter Abatement 210,000 58,625 28% 219,000 54,407 26%
Construction Permits 932,200 554,807 60% 1,735,000 374,745 36% Zoning Enforcement 206,000 234,745 114% 575,000 84,091 39% Plan Check Fees 606,700 317,254 52% 477,000 334,591 60% Parking Meters 351,200 177,369 51% 329,000 182,200 50%
Water Entitlements 287,600 58,170 20% 25,000 1,391,433 86% Interest Earned 843,002 890,222 106% 334,000 1,298,820 200% Investment Market Value Gain/Loss - 278,997 200% 133,000 740,000 200% Indirect Cost Reimbursement 3,175,200 1,626,310 51% 3,175,200 1,835,219 200% Total Major Revenues 36,276,591 17,780,076 49% 36,245,200 19,060,690 57% Total General Fund Revenues 33,787,010 16,062,412 48% 33,756,000 23,947,210 72% FY 2023-24 Tax Revenues Property Taxes Sales Taxes BL/Other Franchise Hotel Taxes Utility 5,975,031 10,135,764 697,772 1,635,968 6,730,240 2,118,068 Analysis: Q2 Revenue is slightly lower than budget primarily due to:
1. Low Franchise Tax receipts, as quarterly payments have not yet been received, And was offset by:
1. Investment Market Value Gain/(Loss), which is not a budgeted item due to unpredictable nature of markets. 56%
37%
42%
19%
41%
46%
55%
35%
84%
19%
41%
45%
Property Taxes - $11.0 million
Sales Taxes - $6.4 million
Business License/Cannabis Taxes - $1.2 million
Franchise Taxes - $1.7 million
Utility User Taxes - $2.2 million
Transient Occupancy Tax - $7.2 million
Budgeted Tax Revenues / YTD % of Budget - Current YTD vs Prior YTD 25-26 24-25
General Fund Expenses (including Transfer) by Department - FY 2025-26 (Unaudited) Through December 2025
50% of Budget Year Complete
Department Revised Budget
YTD
Expenditures
YTD % of
Budget
PY YTD %
of PY
Budget
Outstanding
Purchase
Orders
YTD %
with POs
Year End
Projection
City Council 276,365 $ 109,286 $ 40% 0% - $ 40% 276,000 $ Non Departmental 7,034,619 4,315,321 61% 0% - 61% 7,035,000 City Attorney 307,231 915,000 34% 78% 401,764 77% 915,000 City Manager 1,651,679 688,850 42% 68% 19,196 43% 1,650,000 Admin Services 2,699,548 1,048,138 39% 59% 100,287 43% 3,900,000 Community Development 2,439,321 861,059 35% 72% 962,738 75% 2,400,000 Police 7,981,343 3,364,078 42% 56% 5,429 42% 8,000,000
Fire 3,899,497 1,945,290 50% 47% 2,885,350 124% 3,890,000 Library 520,931 1,200,659 43% 53% 9,372 44% 1,200,000
Museum 424,493 208,729 49% 55% 188,000 93% 424,000
Recreation 1,810,832 760,165 42% 66% 6,367 42% 1,871,000 Public Works 5,491,191 1,866,069 34% 76% 447,142 42% 5,311,000 Total General Fund 35,824,547 $ 15,995,148 $ 45% 58% 5,025,646 $ 59% 36,872,000 $ Analysis: Q2 expenses are slightly lower than budgeted due to Public Works, Police, Community Development, and Admin Services operating under budget. Non Departmental is high due to a $1.5M PERS P.O.B. payment made at the beginning of the year. 40%
61%
34%
42%
39%
35%
42%
50%
43%
49%
42%
34%
45%
50%
City Council
Non Departmental
City Attorney
City Manager
Admin Services
Community Development
Police
Fire
Library
Museum
Recreation
Public Works
Total General Fund
Percent of Year Complete
Revised Budget / YTD % of Budget - By Department
General Fund Expenditure Report - FY 2025-26 (Unaudited) Through December 2025
50% of Budget Year Complete
Expense Line Item
Revised
Budget YTD
YTD % of
Budget
Purchase
Orders
YTD % with
POs
Salaries 13,111,870 5,350,281 41% - 41%
Contract/Professional Services 9,839,129 4,092,466 42% 5,179,106 94% Unfunded Pension Liability 5,000,757 2,500,379 50% - 50% Utilities 2,290,053 1,386,364 61% - 61%
Debt Service 1,965,415 1,648,530 84% - 84%
Health Insurance 1,796,817 717,634 40% - 40%
Internal Service Charges 1,472,000 736,000 50% - 50%
Retirement (PERS) 1,269,249 537,344 42% - 42%
Repairs and Maintenance 1,201,392 239,417 20% 305,482 45% Equipment and Related Leases 1,175,071 231,503 20% 44,948 24% Fund Transfers Capital / Other 1,150,600 607,682 53% - 53% Legal Services / Retainer 996,000 345,984 35% 413,869 76% Other Employee Benefits 718,328 326,805 45% - 45%
Supplies 623,050 222,353 36% 37,213 42%
Other Operating Costs 554,819 244,570 44% 8,273 46%
Software Licenses and Support 413,069 165,299 40% 10,510 43% Subscriptions and Memberships 288,650 74,807 26% - 26%
Meetings / Travel / Training 212,500 59,163 28% - 28%
Grand Total 44,078,769 19,486,581 44% 5,999,401 58%
Analysis: Q2 expenditures are below budget primarily due to savings in Salaries and Professional Services.
Debt Service represents a $1.5M PERS P.O.B. payment made at the beginning of the year. 41%
42%
50%
61%
84%
40%
50%
42%
20%
20%
53%
35%
45%
36%
44%
40%
26%
28%
44%
50%
Salaries
Contract/Professional Services
Unfunded Pension Liability
Utilities
Debt Service
Health Insurance
Internal Service Charges
Retirement (PERS)
Repairs and Maintenance
Equipment and Related Leases
Fund Transfers Capital / Other
Legal Services / Retainer
Other Employee Benefits
Supplies
Other Operating Costs
Software Licenses and Support
Subscriptions and Memberships
Meetings / Travel / Training
Grand Total
Budget or Projected / YTD % of Budget - Major Expense Categories Percent of Year Complete
Expense Report by Object - Enterprise Funds - FY 2025-26 (Unaudited) Through December 2025
50% of Budget Year Complete
Fund / Expense Line Item CY BUDGET CY Expenses % CY Budget PY Budget PY Expenses % PY Budget Local Water Project 446,228 1,025,105 44% 1,360,925 969,444 71% Supplies And Services - 25,000 0% 25,000 1,467 6%
Contract Services 253,287 425,656 60% 419,476 193,570 46% Fund Transfers - - 0% 350,000 175,000 50%
Indirect And ISF Charges 20,500 41,000 50% 50,000 25,000 50% Debt Service - 206,449 0% 206,449 - 0%
Project Utilities 171,428 327,000 52% 310,000 574,407 185% Bad Debt Expense 1,013 - 0% - - 0%
Cemetery Fund 423,317 848,109 50% 720,349 362,006 50%
Services And Supplies 31,524 88,700 36% 114,650 29,790 26% Salaries And Benefits 154,401 350,409 44% 315,699 119,387 38% Indirect Costs And Isf Charges 84,500 169,000 50% 169,000 84,500 50% Utilities 152,892 240,000 64% 121,000 128,329 106%
Sewer Fund 1,378,554 6,257,683 22% 3,250,050 1,887,527 58% Debt Service 44,782 87,814 51% 89,689 43,907 49%
Other Operating Costs 32,303 356,769 9% 238,069 69,019 29% Capital Improvements 304,960 3,206,414 10% 622,052 747,448 120% Employee Salaries 289,785 789,214 37% 637,237 362,327 57% Contract Services 163,530 407,000 40% 374,725 139,952 37% Employee Benefits 77,210 211,176 37% 174,278 88,612 51% Indirect Cost / ISF Charges 215,000 430,000 50% 423,000 211,500 50% Maintenance Services 99,010 516,000 19% 450,000 102,896 23% Unfunded Pension Liability 76,648 153,296 50% 141,000 70,500 50% Utilities 75,325 100,000 75% 100,000 51,367 51%
Golf Fund 698,458 1,026,682 68% 755,057 425,245 56%
Capital Projects And Equipment 50,096 128,000 39% 108,000 16,850 16% Services And Supplies 50 15,000 0% 30,000 - 0%
Debt Service 112,154 272,097 41% 272,057 135,955 50%
Utilities 14,413 23,019 63% 20,000 12,770 64%
Indirect Cost Allocation 10,000 20,000 50% 20,000 10,000 50% Utilities 437,492 568,566 77% 305,000 249,670 82%
Bad Debt Expense 74,253 - 0% 0 - 0%
Grand Total 9,157,579 2,946,557 32% 6,086,381 3,644,222 60% Analysis: Q1 Enterprise Fund Expenses are slightly higher than budget primarily due to:
1. LWP - Contract Services: Operations & Maintenance are higher than budgeted.
2. Sewer - Capital Improvements: CY expenses higher than budget due to work on PY approved projects $2.1M budget rollover in Q2. Contract Services: $233k Lift Station Maintenance encumbrance. Maintenance Services: $400k Sewer Line Maintenenace encumbrance.
3. Golf - Utilities: July through September are the highest water-use months. 44%
50%
22%
68%
71%
50%
58%
56%
Local Water Project - $1.0 million
Cemetery - $0.8 million
Sewer - $6.3 million
Golf - $1.0 million
CY Budget or Projected / YTD % of Budget - By Fund
YTD % of CY Budget
YTD % of PY Budget
Internal Service Funds Expense Report - FY 2025-26 (Unaudited) Through December 2025
50% of Budget Year Complete
Fund / Expense Line Item CY BUDGET CY Expenses % CY Budget PY Budget PY Expenses % PY Budget Employee Benefit Fund 153,064 312,700 49% 332,000 208,363 63% Other Costs 59,511 95,500 62% 89,000 51,835 58%
Health Benf. Reimbrmst 19,892 5,200 383% 57,000 18,956 33% Health Insurance Cost 67,474 209,000 32% 183,000 138,061 75% Unemployment Claims 6,187 3,000 206% 3,000 (488) -16%
Workers Compensation 480,016 916,948 52% 735,949 623,812 85% Services And Supplies 150 25,000 1% 25,000 6,713 27%
Salary And Benefits 36,811 72,948 50% 55,949 8,113 15%
Insurance Premiums 314,693 319,000 99% 305,000 277,919 91% Insurance Claims 128,362 500,000 26% 350,000 331,068 95% Liability Insurance 639,502 882,167 72% 717,003 642,631 90% Services And Supplies 150 40,200 0% 39,200 10,820 28%
Salaries And Benefits 15,304 64,967 24% 49,803 12,870 26% Insurance Premiums 592,065 677,000 87% 515,000 557,706 108% Insurance Claims 31,983 100,000 32% 113,000 61,235 54%
Grand Total 2,111,815 1,272,583 60% 1,784,952 1,474,806 83% Other Related Information for Insurance Funds:
Recommended Reserve Levels: 75% of outstanding liabilities for Insurance ISF Funds Self Insured Retention Amount: $150,000 per occurrence (WC) / $200,000 per occurrence (GL) New Claims for Quarter: Ҏ 2 (9 compared to 11 in same quarter of prior fiscal year) Claims Outstanding: Ҋ 2 (37 compared to 35 in same quarter of prior fiscal year) Analysis: Q2 Internal Service Fund Expenses are higher than budget primarily due to:
Workers Compensation - Insurance Premiums: Paid up front at the beginning of the year.
Liability Insurance - Insurance Premiums: Paid up front at the beginning of the year. 49%
52%
72%
63%
85%
90%
Employee Benefits
Worker's Compensation
Liability Insurance
Budget / YTD % of Budget - By Fund CY YTD % of Budget
PY YTD % of Budget
99%
26%
87%
32%
91%
95%
108%
54%
Worker's Comp Premiums
Worker's Comp Claims
Liability Premiums
Liability Claims
Budget / YTD % of Budget - For Selected Object Categories CY YTD % of Budget
PY YTD % of Budget
City of Pacific Grove, California
Fund Numbers and Descriptions
General and Capital Project Funds
General Fund - Accounts for funds not accounted for and reported in another fund, including the following subfunds:
• General Fund (01) • Asset Seizure (22) • Operating Donations (31) • Small Business Assistance (48) • Civic Center (14) • Stillwell Children’s Pool (24) • Vehicle Replacement (32) • Reiko Koo Estate Donation (93) • Drug Awareness (21) • Youth Center Donation (25) • Storm Water (44) Capital Projects (63) - Accounts for capital projects funded fully or in part by discretionary General Fund revenues.
Enterprise Funds
Cemetery (75) - Accounts for revenue from El Carmelo Cemetery site sales and the Little Chapel lease.
Local Water Project (74) - Accounts for the reclamation plant’s operation, treatment, and sale of recycled water.
Sewer (76,78) - Accounts for the City's sewer operations and maintenance (76) and provides funds for sewer lateral loans (78).
Golf Course (77) - Accounts for the concessionaire leases for the golf course, property improvement costs, and debt service.
Internal Service Funds:
Employee Benefit (70) - Accumulates contributions from departments to pay for a variety of employee benefit costs.
Workers' Compensation (71) – Accumulates contributions from departments to pay for premiums, claims and administrative costs.
Liability Insurance (72) – Accumulates contributions from departments for claims, legal costs, and insurance premiums.
Trust (Permanent) Funds
Library (85) - Retains donations and bequeaths for the benefit of Library materials and collections.
Cemetery (86) - Accounts for perpetual expenses; and preservation of burial sites, grounds, paths, roadways and structures.
Yount (90) - Supports beautification of the City and minor improvements to education or recreational facilities.
Other Funds
Library / Poetry (7,11,40) – Accounts for funds to support the promotion of poetry and library improvements and equipment.
Museum (8) – Accounts for donations designated for improvements to the City’s museum of natural history.
Public Safety (12,42-45) – Accounts for funds in support of fire and police safety programs, SRO and 911 services and equipment.
Housing (15,28,36) – Accounts for affordable housing activities for residents and seniors and supports loans for affordable housing.
Streets (17-20,47) – Accounts for Gas and RMRA taxes, Measure X, and other grant funds for street maintenance and improvements.
Lighthouse (27) – Supports the operation at the Point Pinos Lighthouse including staffing, supplies, maintenance and improvements.
Community Development/CDBG (5,34,55) – Accounts for Community Development Block Grants and other department activities.
ARPA (84) – Accounts for funds received and expenditures from the American Rescue Plan Act provided by the federal government.
Downtown/Hospitality Districts (9-10) – Funds support the Chamber of Commerce and Convention/Visitor’s Bureau operations.
Cable Franchise / Other (6, Other) – Funds programming on public access television (PEG) and other donations and grants, including:
• ASBS Grant (79) • Yount Income (41) • Chautauqua Hall (26) • Coastal Conservancy Grant (69) • Strong Disbursements (46) • Mcindoo Donation (92) • Operating Grants (30) • Carillon Fund (03)
Information related to major revenues categories is provided within this section. All graphs are in millions.
Property Taxes
Property tax revenues are received in December and April, with a minor amount in June. Proposition 13 sets FY 75-76 assessed values as the base year, with a growth rate limited to 2% for future years. The County Assessor also reappraises each real property parcel when there are purchases, construction, or other statutorily defined changes in ownership. Proposition 13 limits the property tax to 1% of each property’s full value, plus additional percentages for voter approved indebtedness. The City receives approximately sixteen cents of every dollar of property tax. Variations can result from timing differences, changes in assessed valuations, new developments and property sales during the year.
Sales Tax
Voters approved Measure A, a new 0.50% transaction and use tax. This increased the combined sales tax rate to 9.25% in October 2022. The General Fund portion of the City sales tax is comprised of a 1% Bradley-Burns statutory sales tax rate; and Measure U, a 1% transaction and use tax that was approved by voters in 2008. Restaurants and Hotels are the largest providers of sales tax to the City, followed by businesses in the building and construction category and from the County/State sales tax pool. Variances can occur annually resulting from timing differences, changes in car sales and online purchases, the two largest categories of its use tax, and from variances in tourism in the area.
Transient Occupancy Tax (TOT)
TOT is a lodging tax received on a monthly basis that is collected on overnight rental accommodation stays of 30 consecutive days or less. In 2010, the City updated its municipal code and began collecting TOT on residential or short-term rental properties (STRS). In Fiscal Year 17/18, the City approved an ordinance to reduce the number of short-term rentals, effective April 30, 2019. A one-time lottery was also conducted that eliminated 51 STR licenses to meet the ordinance’s new density requirements. In November of 2018 voters approved Measure U, increasing the TOT rate to 12%. This increased tax was partially offset by Measure M, eliminating STRs outside of the Coastal and Commercial zones. Variances can be affected by timing differences and changes in room and hotel occupancy rates.
Other Taxes
The City imposes a utility users’ tax on residents and businesses that utilize water, gas, electricity, telephone, and cable services. This tax is assessed at a rate of 5% of the amount charged by the utility; and it is paid by the person consuming the service.
The amount of revenues received is affected by timing differences and updates to the underlying rate structures or new development projects.
The City grants franchises to utilities to construct, maintain, lay infrastructure, or operate transportation on or over streets, alleys, lanes, or other public places within the City. New franchises or their renewal are levied a tax of at least 2% if gross annual receipts from franchises within the City.
The City charges a business license tax on entities doing business within the City. The tax rate is based upon gross receipts of the previous calendar year, with a minimum annual tax of $15 and a maximum of $3,000. The tax is payable on July 31st of each year along with a business improvement district assessment of 35% of the tax. The amounts can vary annually due to timing differences and periodic external audits and changes in business activity.
City of Pacific Grove
General Fund Revenue Overview
$8.2
$8.6
$9.3
$10.0
$11.0
2021
2022
2023
2024
2025
$5.0
$5.6
$6.7
$7.1
$6.4
2021
2022
2023
2024
2025
$4.0
$6.8
$7.1
$7.4
$7.0
2021
2022
2023
2024
2025
$3.8
$4.0
$4.3
$4.6
$5.0
2021
2022
2023
2024
2025
Note that expenditures for most operating departments include amounts budgeted for personnel costs, including allocations for payment of the City’s unfunded pension liability, meeting and travel costs (except the City Attorney, Fire and Museum departments, operated on a contract basis), and internal service charges for support provided by other departments. In addition, most departments include allocations for utilities and contracted professional services. Note that variances for departments frequently can occur due to vacancies, timing differences in the payment for items, unexpected repairs and delays in projects, and higher than anticipated increases in costs for products and services. The departments’ budgets also include the following expense categories, General Fund
City Council – Includes annual association memberships
City Attorney – Includes the legal retainer and contract legal services City Manager – Includes economic development and human resources programs and consultants Administrative Services – Includes contracted technology services, bank fees, leases for equipment and cloud based services, communication / phone services, software licenses, computer equipment / support and repairs Community Development – Includes contracted building, planning and dept legal professional services, bank fees, advertising for bidding, leases for equipment and cloud based services and software licenses Police – Includes dept legal services, communication / phone services, bank fees, safety and computer equipment / support, vehicle fuel and dept related debt service payments and fund transfers Fire – Includes contracted fire services, repairs, fire prevention services and dept related debt service / transfers Library – Includes new library books, leases for equipment and cloud based services and building repairs Museum – Includes the operation of the museum and building repairs Public Works – Includes maintenance of buildings, equipment, grounds and trees, street cleaning, maintenance of the fleet, leases for equipment and cloud based services, supplies and services and communication charges Recreation - Includes bank fees, advertising for recreation programs, building repair and operating supplies Enterprise / Internal Service Funds
Local Water Project – Funds equipment and its debt service payments. This fund may exceed budget by year end due to higher than expected utility costs
Cemetery – Includes its staffing and for operating supplies Sewer– Funds maintenance, equipment and vehicle repairs, equipment, supplies, capital and debt service Golf – Includes operations, improvements and for its debt service.
Employee Benefit – Includes contributions for various employee benefits Worker’s Compensation / Liability Insurance – Funds claims, administration and insurance premiums See additional details on capital expenditures for these funds in the City’s separate quarterly capital project report.
Other Funds
Several of the City’s funds will require mid-year adjustments due to the carryover of several capital projects from Fiscal Year 2024-25 to Fiscal Year 2025-26. These include the following funds:
• Museum (Fund 08) • Lighthouse (Fund 27)
• Local Streets / Roads (Fund 17) • Road Maintenance RMRA (Fund 47) • ARPA (Fund 84) • General Fund Capital Projects (Fund 63) • RSTP / TAMC Transportation (Fund 20) • Sewer (Fund 76) City of Pacific Grove
Departmental Expenditure Overview / Variance Analysis
Election Services Agreement JUNE 2, 2026
County of Monterey Department of Elections and
City of Pacific Grove Page 1 of 3
SERVICE AGREEMENT FOR THE PROVISION OF ELECTION
SERVICES BETWEEN CITY OF PACIFIC GROVE AND
COUNTY OF MONTEREY ELECTIONS DEPARTMENT
JUNE 2, 2026
This Agreement, entered into this _________ day of 2026, by and between CITY OF PACIFIC GROVE and County of Monterey Elections Department (hereinafter referred to as the Department);
WHEREAS, it is necessary and desirable that the Department be retained for the purpose of conducting an election hereinafter described for the CITY OF PACIFIC GROVE (hereinafter referred to as the City);
NOW, THEREFORE, IT IS HEREBY AGREED BY THE PARTIES HERETO AS FOLLOWS:
SERVICES TO BE PERFORMED BY THE CITY:
1) No later than the 88th day prior to the election the City shall submit a resolution consolidating with the June 2, 2026, Statewide Direct Primary Election, requesting the Department to conduct the election for the City on said date and requesting election related services of the Department of which the City agrees to reimburse the Department.
2) The City shall publish the Notice of Election and the Notice to File Declarations of Candidacy for the offices to be voted on, and/or the Notice to File Arguments for or against any measure as applicable.
3) The City shall submit to the Department in writing the exact number of offices to be voted on and the names and ballot designations of the candidates for those offices, and/or the exact ballot wording to be voted by no later than the 88th day prior to the election, or by the 83rd day prior to the election if Elections Code §§ 10225, 10229, and 10407 are applicable.
4) The City shall prepare and deliver to the Department the information that shall be included in the local voter information guide containing, as applicable, candidates’ statements of qualifications, ballot measure, tax rate statements, impartial analysis, Election Services Agreement JUNE 2, 2026
County of Monterey Department of Elections and
City of Pacific Grove Page 2 of 3
arguments for or against and rebuttals thereto. The last day for the City to file primary arguments (300 words) and impartial analysis with the Department shall be no later than MARCH 12, 2026. The last day for the City to file rebuttal arguments (250 words) with the Department is MARCH 19, 2026. 5) The City shall be responsible for reviewing and approving the language of the sample ballot and official ballot wording for candidates and measures. 6) The City shall be responsible for all legal notices and publications related to filing deadlines with the City.
SERVICES TO BE PERFORMED BY THE DEPARTMENT:
1) The Department shall select and contract with the sample and official ballot printer(s) on behalf of the City.
2) The Department shall prepare and deliver to the printer the official ballot information. 3) The Department shall issue, receive and process all ballots on behalf of the City matters. 4) The Department shall procure all necessary and appropriate polling locations, hire polling place workers, and conduct the election in accordance with all applicable state, federal and local laws.
5) The Department shall prepare a Canvass of Votes Cast and submit a Certificate of Registrar of Voters to the City regarding the City matters.
6) The Department shall conduct any and all election activities as required including but not limited to all those required as the City’s Election Official other than those described under “Services to be Performed by the City”.
TERMS:
This Agreement shall be in effect for the performance of all services incident to the preparation and conduct of the election to be held on JUNE 2, 2026.
The parties will use best efforts to perform services herein. However, in the event the Department is unable to perform services required under this Agreement that are beyond their control, including an employee strike, vendor conditions, natural disasters, war, or other similar conditions, the Department will be relieved of all obligations under this Agreement. The Department will provide reasonable notice, if practical, of any conditions beyond their control, including notice at least 60 days Election Services Agreement JUNE 2, 2026
County of Monterey Department of Elections and
City of Pacific Grove Page 3 of 3
prior to JUNE 2, 2026 of vendor conditions affecting the election services. In the event a vendor does not perform, the Department will attempt to obtain substitute services.
CONSIDERATION:
In consideration of the performance of services and supplies provided by the Department, the City shall pay to the Department a sum equal to the actual cost of such services, expenses, and supplies related to the work performed on behalf of the City. In the event that this Agreement is terminated prematurely, the City shall pay to the Department a sum equal to the actual cost of such services performed or supplies/expenses incurred as of the effective date of the termination.
The City shall make payment within 30 days of receipt of invoice from the Department.
CITY:
Signature: ____________________________________________ Date: _______________ Print Name: ____________________________________________ Title: ____________________________________________
COUNTY:
Signature: ____________________________________________ Date: _______________ Print Name: Gina Martinez .
Title: County of Monterey, Registrar of Voters .
.
ORDINANCE NO. 26-000
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE
AMENDING THE CALHOME REUSE EXPENDITURE BUDGET
FOR FISCAL YEAR (FY) 2025-26
FACTS
1. The City Council approved the Fiscal Year 2025-26 Budget on June 18, 2025.
2. It is customary to amend the budget to adjust expenditures to reflect updated information since the adoption of the Fiscal Year 2025-26 Budget.
3. Staff is recommending an amendment to the Fiscal Year 2025-26 Budget to reflect an opportunity to rehabilitate and preserve housing for the fiscal year budget.
4. The City has an adopted CalHome Reuse loan program, Fund 36, that provides loans to qualifying homeowners to rehabilitate and make their single-family dwellings safe.
5. The City has received an application for a loan from this program to rehabilitate an existing owner occupied single-family dwelling in need of repairs that will make it safe and habitable, and the owner of this property has been found to meet all qualifying criteria for this program.
6. This rehabilitation project has been found to meet and comply with all the requirements of the CalHome Rehabilitation Loan Program.
7. There are sufficient funds in the CalHome Reuse fund reserves to support this budget amendment.
8. The City Council has determined it is appropriate to amend the approved budget for FY 2025-26 to increase the CalHome Reuse Fund expenditure budget, allowing for issuance of a simple interest loan for a project that will rehabilitate and make safe an owner-occupied single-family dwelling.
9. Pursuant to Charter Article 15, an amendment of the budget must be approved by ordinance.
10. A summary of the Ordinance, approved by the City Attorney, was published on February XX, 2026.
11. 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.
12. Enactment of this ordinance action does not constitute a “project” as defined by California Environmental Quality Act (CEQA) Guidelines Section 15378 because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PACIFIC GROVE DOES ORDAIN AS FOLLOWS:
SECTION 1. The foregoing facts are adopted as findings of the City Council as set forth fully within the body of this ordinance.
SECTION 2. The Fiscal Year 2025/26 expenditure budget for the CalHome Reuse Program, Fund 36, is hereby amended as follows:
Fund Beginning Expenditure
Fund Balance
Available Reserves Reserve Transfer Ending Expenditure
Fund Balance
36 $24,000 $273,086 $199,000 $223,000
SECTION 3. In accord with Article 15 of the City Charter, this ordinance shall become effective upon adoption hereof.
PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PACIFIC GROVE this XXth day of February, 2026, by the following vote:
AYES:
NOES:
ABSENT:
APPROVED:
___________________________________
NICK SMITH, Mayor
ATTEST:
DATED:____________________________
SANDRA KANDELL, City Clerk APPROVED
AS TO FORM:
ALEX LORCA, City Attorney