Monterey declares fiscal emergency to place tax measures on June ballot

MONTEREY – The city of Monterey declared a fiscal emergency to place new tax measures on the ballot this summer.

The Monterey City Council met Tuesday, continuing the discussion of the city’s $10 million deficit that they are trying to rectify through the 2026-2027 fiscal year budget, which starts in July.

The council voted unanimously to declare a fiscal emergency, which city officials said was needed in order to place new tax measures on the ballot. The council then voted to start the process of placing a .375 cent tax measure on the ballot and plans on voting on a parking tax as well.

The 0.375 cent sales tax is projected to generate about $4.5 million annually. The parking tax is projected to generate between $279,000 and $791,882 annually, depending on implementation and compliance.

In a poll of Monterey residents, the survey showed about 57% of residents would vote in favor of a .0375 cent sales tax, over nine years. But only about 44% would vote in favor of a parking tax. The council said they felt that with more education and explaining to voters why they’re in favor of the taxes, more residents would also agree.

The council also received a presentation from the Neighborhood and Community Improvement Program committee, which listed potential projects in the queue that could fund about $3.5 million of the deficit.

Several current and former members of NCIP spoke during public comment, almost all of them echoing that the committee preferred that the council take funds from next year’s NCIP allocation instead of pulling from projects that had already been approved.

Because the agenda item was a presentation, the council did not make any decisions, but council members expressed a desire to move forward.

“It’s time for the decisions, and if we have no limitations on the legal front, a recommendation from NCIP, then we want to relieve the stress and waiting,” said Vice Mayor Ed Smith.