10 MONTEREY COUNTY WEEKLY OCTOBER 30-NOVEMBER 5, 2025 www.montereycountynow.com When Monterey City Council met Oct. 21, it was tasked with making some hard decisions about how to close a $6 million budget deficit for the 2026-27 fiscal year, and a $10 million structural deficit going forward. Instead, unable to find a consensus, the decision has been put off until next February, when city staff will be able to share polling data about the public’s appetite for various tax measures that require voter approval. At the heart of the discussion was the city’s Neighborhood and Community Improvement Program funds. Per a voter-passed charter amendment from the 1980s, 16 percent of the city’s transient-occupancy tax revenues flow into NCIP annually to fund neighborhood-driven projects. The program has funded hundreds of projects over the decades, many of which are in need of replacement or maintenance. But NCIP does not fund maintenance, just new projects. Going into the Oct. 21 meeting, the council had already expressed willingness to take $4 million from this year’s NCIP fund, which left another $6 million to balance next year’s budget. Where to find that money is a complex question with several potential answers that include freezing unfilled staff positions, eliminating programs, potential revenue from various tax measures that require voter approval, or taking more money from NCIP, which currently has about $17 million in the bank. The latter option, as presented by City Manager Hans Uslar, would “skip a year” by taking $6 million of next year’s unallocated NCIP funds—money not yet attached to a project—to essentially buy the council some time. Per the city charter, any funds taken from NCIP require a four-fifths majority vote by the City Council. Mayor Tyller Williamson and councilmembers Kim Barber and Gino Garcia were open to taking NCIP money, but Jean Rasch and Ed Smith were resistant to the idea. Rasch said that in the organizational chart of the city, residents are “at the top.” She suggested instead freezing positions and borrowing from reserves—not NCIP—to close the $6 million gap until one or more potential tax measures could take effect. Smith wanted to focus on cutting spending—NCIP not included—by freezing positions, and looking at what programs can be cut, such as rental assistance. He also wanted more information about what positions could be potentially eliminated. Without a four-fifths consensus, the council will be making the decision next year. Uslar says he thinks when the council has all the information, they will make the decision to take the money from NCIP, and adds that the possibility of a bond measure has been floated by the council for public safety facility upgrades. Uslar uses a metaphor of a banker looking at a city that borrows from reserves while it’s sitting on a pot of cash elsewhere. “That makes a reasonable banker say, ‘Hey, that’s interesting,’” he says. Balancing Act Monterey City Council remains unable to find consensus on closing a $10 million budget deficit. By David Schmalz Monterey Mayor Tyller Williamson has promoted the most aggressive plan to take money out of the Neighborhood and Community Improvement Program to solve a budget deficit. NEWS She suggested freezing positions and borrowing from reserves. DANIEL DREIFUSS Voted Monterey County’s Best Antique Shop ’25 ♦ 3 Card Poker ♠ Century 21st No Bust Black Jack ♣ Texas Hold’em ♥ FULL BAR! BLACKJACK BONUS POINTS PAYS UP TO $20,000 SMALL TOWN BIG PAYOUTS! 1-800-Gambler • GEAR-000383, GEAR-000376, GEAR-000375 The Marina Club Casino ensures the safety and security of all guests and team members at all times, while providing exceptional service. 204 Carmel Ave. Marina 831-384-0925 casinomonterey.com ♠ ♣ ♥ ♦ Just minutes from Downtown Monterey Where Monterey Comes To Play
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