Sales-tax update shows small Q4 dip; committee readies Measure P & S for November ballot

Rafaela presented the city’s sales-tax update for the fourth quarter of 2025 and the oversight committee discussed the implications for local revenues and the Measure P & S renewal.

Rafaela said the city’s Q4 tax totals were about 1.9% below the same quarter of the prior year in the reporting slice highlighted, while the county and state experienced small increases. She said restaurants and resident-driven spending make up the largest revenue group (about 40%), followed by consumer goods and pools. Rafaela flagged a one-time business-related decline of roughly $65,000 that affected the quarter’s comparison.

Committee members asked when Mercedes-Benz of Monterey plans to relocate to Marina and how that move might affect local sales-tax receipts; staff said the move is a multi-year matter and that some Mercedes operations (van sales) will remain locally. Rafaela said staff meet quarterly with HDL to monitor tax producers and to plan possible business recruitment to offset losses.

On the ballot timeline, committee members noted council approved a resolution to place the Measure P & S renewal on the November 2026 ballot. Members discussed an eight-year extension and outreach responsibilities; Chair Patrick Aldinger and others urged grassroots conversations with neighbors and community groups to support renewal. Committee members said the measure previously passed by large margins (around 76% and approximately 82–83% in past votes) but cautioned that voter fatigue and competing tax measures make outreach important.

The committee moved to receive the sales-tax update as presented and approved the motion by roll call.