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Pacific Grove officials outline $21M infrastructure gap and propose 3/8¢ sales tax to close recurring shortfalls
Summary
City staff told residents the city projects a multi‑year shortfall and about $21 million in unmet infrastructure needs; officials proposed a general 3/8‑cent sales tax on the November 2026 ballot, estimated to raise roughly $1 million a year if approved.
Pacific Grove officials told residents during a public forum that the city faces a structural budget challenge and long‑term infrastructure shortfalls that will require new revenue and spending decisions.
Deputy City Manager Joyce Hallaby and Administrative Services Director Fred Marsh presented a five‑year fiscal forecast showing revenues modestly rising from about $33 million to $35 million while expenses grow faster, producing a recurring annual shortfall. The city’s capital planning exercise identified roughly $21,000,000 in unmet infrastructure needs over the next 10 years, including immediate work in the first five years.
"We have an annual…
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