Carmel-by-the-Sea adopts $34.9M budget and $45M appropriations limit, sets capital priorities

CARMEL-BY-THE-SEA, Calif. — The Carmel-by-the-Sea City Council on June 3 adopted a $34.9 million budget for fiscal year 2025–26 and a $45,000,081,158 appropriations limit, approving new capital spending while directing staff to tighten oversight and report back regularly.

The council adopted the annual appropriations limit (the “Gann limit”) first and then approved the operating and capital budget in a separate vote. The budget passed on a 5-0 roll call; all council members present voted yes.

City staff said the adopted budget relies on $4.9 million of fund balance to cover proposed capital projects and uses projected revenues of $34.9 million. Operating expenditures total about $31.9 million (roughly 91.6% of projected revenue), while capital projects in year 1 total $7.8 million; combined with an estimated $3.9 million in carryovers, the city could spend as much as $11.4 million on capital this year.

Finance staff…