Pacific Grove Unified board opens discussion on 5-year fiscal stability plan; staff to explore parcel tax, reconfiguration and an education foundation

The Pacific Grove Unified School District board on March 5 reviewed an information item outlining a proposed five-year fiscal stability plan and timeline that staff described as a roadmap for stabilizing the district's finances.

Superintendent Dr. Adamson presented five pillars: (1) adopt a reserve policy (board discussion suggested a 10% target), (2) pursue new revenue generation including the possibility of a parcel tax, (3) create a PGUSD education foundation, (4) pursue ongoing grants and sponsorships, and (5) improve funding governance and operational efficiency including an exploration of district reconfiguration or a redrawing of boundary lines.

Dr. Adamson and Assistant Superintendent Jorn explained that to place a parcel tax on the upcoming gubernatorial general-election ballot staff would need to begin the process promptly. Jorn reviewed the district's 2008 parcel-tax history: the district previously passed a parcel tax of $35 per parcel that ran through 2012; a later extension narrowly failed. He estimated roughly 9,400 parcels in the district and said a $35 parcel tax would generate on the order of $350,000 annually, stressing that specific rates and durations would be determined by community survey results and expert counsel.

"If we want to consider a parcel tax for the gubernatorial ballot, we'd need to move quickly," Dr. Adamson said, noting staff had spoken with Dale Scott and Company to understand the timeline, the need for a voter survey and associated outreach. Jorn estimated a basic survey and mailing/printing outreach cost in the neighborhood of $10,000 and said Dale Scott's team would provide detailed costs and options if the board wanted an informational presentation.

Trustees asked for more detail on options that could be more politically palatable, such as partial taxes (for example targeting short-term rental units) or tiered charges by property value. Trustee Wax asked about appetite and trade-offs, saying, "If it's too high, then it's a no," reflecting concern about balancing revenue needs and voter support. Trustee Hazen urged the board to include community forums in the process and suggested the policy committee develop norms for one-time funds and reserves.

Board members also discussed potential reconfiguration of the two elementary schools and whether consolidation or other operational changes could generate savings; several trustees cautioned that reconfiguration can be unpopular and might produce modest savings, so staff should present options and alternatives without assuming consolidation is required.

Staff indicated they will bring an informational presentation from parcel-tax consultants (Dale Scott) in April if the board wants to pursue that path, and will return with more detailed fiscal analysis on reconfiguration, proposed governance language for onetime funds, and options for an education foundation. Trustees asked staff to include comparative information about other districts that recently passed parcel taxes and to outline the soft and hard costs of a survey and polling process.

The item was informational; no board action was taken. Staff will return with follow-up materials and, if the board directs, an information item from consultants in April.