12 MONTEREY COUNTY WEEKLY FEBRUARY 5-11, 2026 www.montereycountynow.com With expenses outpacing revenue, the Monterey City Council is exploring numerous strategies to address the city’s structural deficit, including raising taxes and defunding neighborhood improvement projects. At a special council meeting on Wednesday, Jan. 28, City Finance Director Rafaela King outlined the circumstances that contributed to the city’s budgetary shortfall. “It’s an ongoing issue as long as the growth in expenses outpace the growth in revenue,” King said. She mentioned that although city staff had come up with creative “onetime solutions” to balance the current year’s roughly $11.6 million shortfall by not funding vacant positions, for example, they anticipate that expenses will outweigh income by about $12 million again in the next fiscal year. The biggest expense is the city’s growing workforce, which increased from under 420 full-time employees in 2021 to 488 in 2025. King pointed out that from fiscal year 2024-2025 to 2025-2026, salary and benefits expenses for the city went up by about $6 million due to regular cost of living increases of about $3 million, overtime, retirement and other factors. Operating and technology expenses also increased by about $5.7 million in that time period. After considering multiple avenues out of the structural deficit, the City Council voted on Wednesday, Jan. 28 to move forward with two tax measures on the June ballot. Those include a measure to increase sales tax by 0.375 percent, which sunsets in nine years, and an 8-percent parking tax. Later the same day, the city’s Neighborhood and Community Improvement Program Committee considered a charge from the City Council to provide recommendations to defund between $3 million and $4 million in projects that are inactive or not yet started. The committee members were asked to rate projects from 1 to 10, with 10 equating to a project that should remain funded and 1 being a project that should be unfunded. The task was not welcomed by many committee members, who suggested they rate every project as a 10 and let the council decide, such as Skyline neighborhood representative Dennis Duke. “My recommendation is that we vote high numbers on all of these projects other than the ones that are low-lying fruit and recommend that they take our $3.5 million from next year,” he said. “And frankly, they need to clean up their own budget because they won’t get a tax increase. They won’t get other sources of revenue and they need to clean up their expense house.” Despite the pushback, the NCIP Committee ultimately scored the projects 1-10, and unanimously approved a motion made by Duke stating the committee’s position: “While we have voted on these projects as directed, our preference is for the previously approved NCIP motion to utilize the $3.5 million of the 2026-27 cycle funding as needed to assist the city in the budgetary shortfall.” Falling Short Monterey City Council advances two tax measures to curb budget woes. By Aric Sleeper Monterey City Council voted to put two tax measures on the June primary ballot and may also green light others for the November election, including an admissions tax and vacant home tax. NEWS “Frankly, they need to clean up their own budget.” DANIEL DREIFUSS CONGRATULATIONS 2025 Employee of the Year Fred Simkins Fred began his career with MST on March 3, 2003, joining one of the largest Coach Operator classes in MST history with 15 drivers. Over the past two decades, Fred has built an impressive record behind the wheel, earning recognition for over 20 years of safe driving, multiple Perfect Attendance Awards, and numerous Coach Operator Performance Excellence Awards. His dedication has also been celebrated through Employee of the Month honors in 2005, 2008, 2014, 2017, and 2025, and he previously earned Employee of the Year in 2008 for exceptional performance. Fred’s contributions extend far beyond his driving record. Known for his curiosity and commitment to accuracy, he is never hesitant to ask questions, raise concerns, or alert MST staff to potential issues. Early in 2025, Fred identified a critical problem when Aspire Health Group ended its contract with Anthem Blue Cross, leaving 164 MST employees and their dependents, along with more than 2,500 Monterey County residents, without access to Aspire’s health services. Fred worked tirelessly with MST staff, Blue Cross, CalPERS, and his fellow employees to gather information and advocate for a resolution. He even spoke at a CalPERS board meeting, where his persistence prompted health insurance executives to visit the Monterey Peninsula. Thanks to Fred’s determination, CalPERS successfully mediated a new agreement between Aspire Medical Group and Anthem Blue Cross—an outcome that safeguarded healthcare access for thousands of local residents. Fred embodies MST’s mission both on the road and within our facilities. His positive attitude, collaborative spirit, and unwavering dedication inspire his peers and strengthen our organization. Please join us in congratulating Fred Simkins, MST’s Employee of the Year for 2025, and in celebrating his remarkable contributions to our community. EMPLOYEES OF THE MONTH FOR 2025 JANUARY Ursulla Scardina FEBRUARY Daniel Merillana MARCH Johnny Castillo APRIL Kaleb Aquino-Lopez MAY Fred Simkins JUNE Charles Kirk JULY Daniel Rodriguez AUGUST Greg Burchell SEPTEMBER Kelly Soriano OCTOBER Ezequiel Rebollar NOVEMBER Grace Ibarra DECEMBER Asuzena “Susie” Flores Connecting communities. Creating opportunity. Being kind to our planet.
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