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Council amends budget to pay Monterey $113,003 for past sidewalk work

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Summary

Pacific Grove agreed to a budget amendment and ordinance to reimburse the City of Monterey $113,003.13 for sidewalk work completed years earlier after the amount was discovered during Monterey’s year‑end closing.

The Pacific Grove City Council on July 16 adopted an ordinance amending the fiscal 2025–26 operating and capital budget to reimburse the City of Monterey $113,003.13 for sidewalk work completed near Prescott Avenue.

City staff said the work was completed in 2011 under a cost‑sharing arrangement adopted in 2008. Due to staff turnover in both cities the outstanding invoice was not processed until Monterey discovered it during their year‑end closing. City Finance staff reviewed records and determined no payment had been issued.

City staff described the payment as a settlement of a longstanding intercity cost‑sharing agreement and recommended using capital improvement funds to pay the amount. The city attorney read the ordinance title on the record and council then voted to adopt the recommended actions by voice vote.

Council discussion acknowledged the unusual length of time between the work and payment but praised Monterey staff for identifying the outstanding bill. Councilmember Garfield said the case illustrates how staff turnover can obscure long‑running obligations and noted improved audit and disclosure practices should prevent recurrence.

The ordinance authorizes the mayor to execute documents necessary to effect the budget amendment and payment; council approved the action unanimously.