Critical PriorityTaxes Budgetopen

Proposed General Transactions and Use Tax on November Ballot

Summary

About $124,000 in regional RSTP funds is designated for Pacific Grove over three years, usable for any transportation project the city chooses — the last allocation went to intersection work near the Kimpton hotel.

At a glance

Total mentions
11
Last 30 days
0

Last discussed Jul 21, 2026.

Impact analysis

💰Financial impact

Roughly $124,000 in regional grant funds available to the city over three years.

✅Who benefits

Residents, if the city directs the money to local street, bike or pedestrian projects.

⚠️Who could be affected

Shoppers and local merchants if higher sales tax discourages local spending, per the public commenter.

Mentions & discussions (11)

MeetingJul 21, 2026

Beautification and Natural Resources Commission — July 21, 2026

The council has approved putting a 0.375% sales tax on the November ballot to fund infrastructure, following community survey outreach.

MeetingJul 7, 2026approved

City Council Special Meeting — July 7, 2026

Pacific Grove voters will decide this November whether to approve a general transactions and use tax — a sales tax — whose revenue would go into the city's general fund. Because it's a general tax, the council could spend the money on any municipal priority.

MeetingJul 7, 2026

Library Board — July 7, 2026

The council was set to consider a ten-year 0.375% sales and use tax that evening to fund infrastructure and recreation needs, keeping the revenue in Pacific Grove before a regional agency could claim the remaining tax capacity.

MeetingMay 14, 2026

Planning Commission Regular Meeting — May 14, 2026

City spending is outpacing revenue, reserves are projected to drop from 41% to 21%, and there's $21 million in unfunded infrastructure needs over ten years. A 0.38-cent sales tax increase could go on the November 2026 ballot, raising about $1 million a year, plus possible parking meter hikes from $2 to $2.25 an hour.

MeetingMay 12, 2026

Architectural Review Board — May 12, 2026

The city is running annual deficits — expenses will outgrow revenues over the next five years — and faces $21 million in unmet infrastructure needs over ten years. Staff proposes a three-eighths-cent sales tax on the November ballot raising about $1 million a year for streets, parks, and public safety. A resident pushed back, questioning city spending.

MeetingMay 12, 2026

Museum Board — May 12, 2026

The council will consider in June a 3/8-cent sales tax increase that would raise about $1 million a year and go to voters on the June 2026 ballot if adopted. As a general tax it could fund streets, parks, public safety and more.

MeetingApr 22, 2026

Historic Resources Committee — April 22, 2026

The city is running a structural budget shortfall — expenses are growing faster than revenues, reserves are projected to shrink from 41% to 21%, and there's a $21 million infrastructure backlog over ten years. Staff proposed a three-eighths-cent sales tax increase for the November 2026 ballot that would raise about $1 million a year, and asked residents to take a community survey.

MeetingApr 21, 2026

Beautification and Natural Resources Commission — April 21, 2026

The city spends more than it takes in each year and is draining reserves to cover the gap — reserves are projected to drop from 41% to 21% within five years. There's also about $21 million in unfunded infrastructure needs. Staff want to put a three-eighths-cent sales tax on the November 2026 ballot to raise roughly $1 million a year, plus raise recreation, development, cemetery, and parking fees.

MeetingMar 24, 2026

Traffic Safety Commission — March 24, 2026

About $124,000 in regional RSTP funds is designated for Pacific Grove over three years, usable for any transportation project the city chooses — the last allocation went to intersection work near the Kimpton hotel.

MeetingMar 18, 2026approved

City Council Regular Meeting — March 18, 2026

True North Research presented survey results on a possible revenue measure, and council authorized moving into the next phases of work. A future tax measure could appear on a ballot.

MeetingJan 21, 2026approved

City Council Regular Meeting — January 21, 2026

The city is running a $1.96 million deficit this year and needs about $11.7 million over five years for streets and facilities. Council approved just the polling phase of a consultant contract to find out what taxes residents might support — including a possible TOT increase and a 0.375% sales tax.

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