Monterey City Council Meeting, September 2, 2025: Budget Deficit and City Manager Recruitment

The Monterey City Council met on September 2, 2025, in afternoon and evening sessions. The meeting opened with recognition of military service members from the Defense Language Institute, followed by public comments on street vending permits. The council then interviewed three firms for city manager recruitment and unanimously selected Bob Murray and Associates. The evening session included a Narcan training demonstration and a detailed discussion on strategies to address the city's $10 million structural budget deficit, with the council reaching consensus on multiple revenue measures and directing staff to continue analysis.

Consent Calendar

• Approved unanimously.

Public Comments & Testimony

• Afternoon Session: Daniel Mandeir, a local business owner, expressed opposition to the new street vending permit restrictions, stating that the available space would be reduced by 99.7% and calling the process unfair. Mira, a vendor since 2019, said the planning department had not communicated the new rules and that the marked spaces (10 total) were insufficient and placed in unsafe locations. She noted that 26 vendors were present on the busiest weekend, yet only 10 spots were provided.
• Evening Session: Multiple residents spoke on the budget deficit. Several opposed cutting the Mills Act, the NCIP (Neighborhood and Community Improvement Program), and community centers, particularly the Casanova Oaknoll Park Center. Many urged the council to preserve funding for First Night Monterey. Others spoke against increasing the transient occupancy tax (TOT), arguing it would hurt competitiveness. Richard Rosello, president of the Casanova Oaknoll Neighborhood Association, said the park center had been closed since COVID and should not be called "underutilized." Other speakers supported a sales tax increase and suggested exploring payments in lieu of taxes from major nonprofits like the Monterey Bay Aquarium.

Discussion Items

• City Manager Recruitment: Three firms presented: Bob Murray and Associates (Valerie Phillips, in person), Ralph Anderson Associates (Fred Wilson, via Zoom), and WBCP (Terry Nizich, via Zoom). Each discussed their approach, timeline, and experience. Council members asked about outreach, the current recruitment environment, and confidentiality. After a closed session, the council voted unanimously to select Bob Murray and Associates.
• Narcan Training: Drs. Casey Grover and Reb Close demonstrated the use of naloxone (Narcan) for opioid overdoses, emphasizing that it is safe to administer even if opioids are not present. They noted that Narcan boxes are available at the Monterey Police Department, Lake El Estero, and the transit center. The council thanked them for their work.
• Budget Deficit Strategies: Staff presented 29 index cards with potential strategies to close the $10 million structural deficit, including revenue increases, expenditure reductions, and indirect measures. After public comment, each council member shared their "yes," "no," and "maybe" piles. The council then discussed items with majority support:
  • Sales tax increase (0.375%): Unanimous consensus to move forward; staff to explore ballot timing.
  • Vacancy tax: Majority support; council noted pending litigation and agreed to wait for court decisions.
  • Parking tax: Majority support; staff clarified it would apply to private parking lots, not public garages, with exemptions for hotel parking already subject to TOT.
  • Streaming tax: Majority support; staff to research legal status and feasibility.
  • Admissions tax: Majority support after discussion; staff to explore options, including targeting larger visitor attractions.
  • First responder fee: Majority support; staff to develop a fee structure with hardship waivers, noting other California cities have implemented similar fees.
  • Veterans Park campground optimization: Consensus to proceed.
  • Measure P/S renewal: Supported; to be placed on a future ballot (expires 2027).
  • Measure G renewal: Supported.
  • Stormwater fee update: Consensus to reinstate the fee (approximately $6.76/month) through a Proposition 218 process.
  • Parking fee strategy: Consensus to expand paid parking hours and areas.
  • Real property transfer tax update: Majority support; staff to research tiered options.
• Items such as NCIP reappropriation, attrition, Mills Act, and property sales were deferred to a future council meeting. The council also agreed to hold a joint meeting with the NCIP committee.

Key Outcomes

• Unanimous approval of the consent agenda.
• Unanimous selection of Bob Murray and Associates for the city manager recruitment.
• Consensus to move forward with exploring a 0.375% sales tax increase, a vacancy tax, a parking tax, a streaming tax, an admissions tax, a first responder fee, and other measures. Staff will conduct further analysis and bring recommendations back to the council.
• Support for renewing Measures P/S and G.
• Direction to reinstate the stormwater fee through Proposition 218.
• Staff to schedule a joint meeting with the NCIP committee.
• Meeting adjourned in memory of retired Monterey Police Captain David Fortune, who passed away on August 16, 2025, at age 76, after 31 years of service.