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Monterey council directs staff to pursue 0.375% sales tax and 8% parking tax for June ballot to help close budget gap
Summary
Facing a projected structural general‑fund gap, the council voted unanimously to move a 0.375% sales tax (staff discussed a nine‑year sunset) and an 8% parking tax onto the June 2, 2026 ballot and asked staff to advance ballot language and schedule required actions for the tight timeline.
The Monterey City Council voted unanimously Jan. 28 to direct staff to place two revenue measures on the June 2, 2026 ballot — a 0.375% sales tax (staff discussed a nine‑year sunset) and an 8% parking tax — as part of a package of options to address a multi‑million‑dollar structural general‑fund deficit.
Finance Director Rafaela King told the council the city faces a structural deficit driven by rising salary and benefit costs, higher insurance premiums and retirement liabilities, and an increase in authorized full‑time equivalents. King said…
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