Special City Council Meeting Summary - January 28, 2026

The Monterey City Council held a special meeting on January 28, 2026. The meeting included a closed session (no reportable action), followed by action on a CAL FIRE grant for fuel reduction, a presentation on stormwater utility fee study results, and a discussion on budget deficit reduction strategies and potential ballot measures for the June 2026 election.

Consent Calendar

• Item 3 (Consent): Approved unanimously. No other details provided.

Public Comments & Testimony

• Item 2 (CAL FIRE Grant):

  • Adam, on behalf of the Monterey County Association of Realtors, expressed support for the grant, asking that the city prioritize residential neighborhoods at risk, create buffer zones, and document work so homeowners can potentially receive insurance rate reductions.
  • Nina Beattie opposed the grant, arguing that CAL FIRE's vegetation management practices increase fire danger, reduce moisture, and promote flammable grasses and thistles. She also raised concerns about smart meters, lithium-ion batteries, weather modification, and microwave radiation stressing trees.
  • Esther asked that Laguna Grande Park not be overlooked when distributing grant funds, noting that trail maintenance behind homes had been paused and that an area with homeless encampments and dense brush needs fire mitigation.

• Item 4 (Stormwater Fee):

  • Lori asked about the connection between the stormwater fee and the city's Local Coastal Plan certification.
  • Tom compared the proposed $7.72/month fee to the previous fee of $5.70, questioned why it could not be reinstated without a Prop 218 process, and expressed surprise at low survey support.

• Item 5 (Budget Deficit and Ballot Measures): No public comments received.

Discussion Items

• Item 2: Accept CAL FIRE Grant for Citywide Fuel Reduction

  • Staff presented the grant: $950,000 from CAL FIRE with a $100,000 city match (using NCIP funds). The funds support operations and maintenance, not capital improvements. Council discussed prioritization (based on high-fire-severity zones), public mapping of completed projects, and the role of vegetation management in preventing crown fires.
  • The fire chief confirmed work with CAL FIRE and noted a 2025 report on defensible space inspections to be released soon.
  • Motion to accept grant and authorize funds passed unanimously.

• Item 4: Stormwater Utility Fee Study Results

  • Staff and consultant Chris Colter presented survey results: 4,100 surveys mailed, 20% return rate, margin of error 2.93%. At $7.72/month ($92.64/year), support was 42.9% (needs 50%+1 to pass). All tested projects received >50% importance rating, with cleaning drains before storms at 72% support.
  • The fee would fund operations and maintenance (O&M), but not capital projects (covered by Measure P and S sales tax until they expire in 2027). Council discussed compliance risks (fines up to $10,000/day for permit violations) and the city's previous fee of $5.70.
  • The adopted catch basin program was highlighted as a volunteer opportunity.
  • Motion to authorize staff to initiate the fee adoption process (Prop 218) passed unanimously.

• Item 5: Budget Deficit Update and Ballot Measures

  • Finance Director Rafela King presented the structural deficit: $112M revenue vs. $124M expenses projected for FY 26-27, with a $10.5M deficit. Key cost drivers included salary increases (4% per year MOUs), growth in FTEs from 450 to 485 since 2021, insurance premium increases (liability up 400% since 2020 to $3.3M), retirement contributions, and debt service for fire trucks.
  • Council questioned the sudden $10M deficit versus prior smaller deficits. Staff explained that one-time fixes (unfunded positions, reserve draws, service cuts) balanced the current year, but ongoing structural imbalance persists.
  • Assistant City Manager Nat presented ballot measure options for June 2026: a 0.375% sales tax (9-year sunset) and a parking tax (staff recommended 8%, with estimated revenue $447k–$633k/year based on 60–85% occupancy). Polling on parking tax showed 44% yes, 44% no, but council felt education could improve support.
  • Council decided to hold the admissions tax for further study and not place it on the June ballot.

Key Outcomes

• Item 2: Motion to accept the CAL FIRE grant and authorize the $950,000 revenue increase and $100,000 match (FY27-28) passed unanimously.
• Item 4: Motion to authorize staff to proceed with the stormwater fee adoption process passed unanimously.
• Item 5: Motion to place two measures on the June 2, 2026 ballot passed unanimously:
  • 0.375% sales tax with a 9-year sunset.
  • 8% parking tax (no sunset).
• The admissions tax was not included; staff will continue to study it for a potential November 2026 ballot.
• Staff will return on February 17, 2026, with a fiscal emergency declaration and resolutions to call the election.