State of the City's
Infrastructure Funding Needs
July 2024
City Hall, 580 Pacific St: Colton Hall 5 Community Centers: Fire Stations 12 & 13: Library: Public Safety Facility: Lighthouse Tunnel: 4 Parking Garages: Sports Center: Conference Center: Storm Water System: Harbor Office, Seawall: Wharves 1 and 2:
Starting in Fiscal Year (FY) 2021-22 and continuing in FY 2022-23, Monterey City Council succeeded in restoring and establishing City reserves at levels that provide fiscal resiliency and ability to address various economic and natural disasters.
Built 1934 Built 1849 Built 1947, 1955, 1958, 1962, 1992 Built 1951 Built 1952 Built 1959 Built 1967 Built between 1971, 1971, 1979, and 1988 Built 1992, expanded 2002 Rebuilt in 2018 Repair/rehab, regulatory mandates Built 1970s - 1980s Built 1913 and 1926
FUNDING NEEDS (current estimate) 1 to 5 years: $96 million 6+ years: $192 million Total: $288 million
RESERVE FUNDS
$113 Million TOTAL FACILITIES NEEDS
2 414 berths, 114 moorings, 40 seasonal 4 garages, 1,955 stalls, 30 surface lots 108 center line miles 3,129 lights and 56 signalized intersections 4 plus one Sports Center 5.8 miles 97 total = 396,000 square feet 100 miles, 7 lift stations, 2,300 structures 3 44 miles, 2 lift stations, 2,800 structures 36 parks and open spaces totaling 637.4 acres
The funding summary shows work critically needed in one (1) to five (5) years and in six (6) plus years. Details of these estimates are available at monterey.gov.
The City of Monterey owns a large portfolio of infrastructure assets that serve residents, visitors, and businesses throughout our community – from roads, wharves, and stormwater systems; to community centers, parking garages, and conference facilities; to beaches, parks and playgrounds. At an average age of 60 years, many of our facilities are aged, aging or are in disrepair. While we have been able to increase our emergency reserves since the end of the COVID-19 pandemic, we need to move our attention and focus on the dire need to preserve our existing infrastructure assets. Our infrastructure is critically underfunded and cannot withstand this level of neglect. It impacts our residents who use the facilities and our workforce who work in them. We estimate it will take $288 million to fund major upgrades to aging buildings, roadways, and other critical inventory needed to provide the community vital programs and services. Currently, the City’s General Fund alone cannot carry the costs for the re-investments into our infrastructure without significantly reducing service and staffing levels. However, reducing services and staffing levels are not viable options as our community enjoys a high quality of life throughout our many provided programs and facilities. Instead, and more than in previous years, the City needs to re-look and analyze how we spend and allocate our revenues. While the City’s General Fund allocation to Capital Improvement Projects (CIP) is $2.5 million, the NCIP is funded per charter with 16% of the TOT, or around $6 million. As part of staff’s outreach and information efforts, the City’s NCIP committee has recommended allocating significant funding toward the rehabilitation of Fire Stations 12 (New Monterey) and 13 (Montecito), as well as our largest community center located at Hilltop Park. This commitment is well-received and just the start.
OUR INFRASTRUCTURE is CRITICALLY UNDERFUNDED
Funding needs summary showing needs in one (1) to five (5) years and six (6) plus years. Details of these estimates are available at monterey.gov/infrastructure.
RESERVE
BALANCE
GOAL
Conference Center
$2,588,739
$10 million ($750,000 per year)
Sports Center
$2,500,000
$750,000 per year
Library
$250,000
$10 million ($250,000 per year)
City Facilities
$850,000
$250,000 per year
Public Safety Facility
$250,000
Parking Garages
$500,000 balance
Sea Level Rise
$500,000
Technology
$1,910,000
$3 million balance
Fund for Economic Uncertainty
$20,276,870
equivalent to 20% of Gen Fund
Built 1934 Built 1849 Built 1947, 1955, 1958, 1962, 1992 Built 1951 Built 1952 Built 1959 Built 1967 Built between 1971 and 1979 Built 1992, expanded 2002 - rehab reserve needed Rebuilt in 2018 - rehab reserve needed Repair/rehab, regulatory mandates Built 1970s - 1980s Built 1913 and 1926
ASSET INVENTORY and funding needs
Wharves: Marina: Parking: Roadway: Traffic Lights: Community Centers: Coastal Recreation Trail: City Facilities: Sewer: Fire Stations: Stormwater: Parks and Open Spaces:
NCIP Boundary Map
Neighborhood & Community Improvement Program
NCIP BENEFITS AND CHALLENGES
In the nearly 40 years since the NCIP was first established, the number of neighborhood and community projects completed have improved the quality of life for all of our residents. NCIP relies on neighbors and staff to bring project ideas forward for City Council approval. While the positive effect of the program has touched every neighborhood in Monterey, the program has created fiscal challenges. Since NCIP does not fund operations and maintenance of their projects, the cost for maintenance falls on the General Fund, thus impacting the City's ability to maintain existing facilities as well as adequately fund existing and future service levels such as police, fire, library, housing, parks, and recreation. Furthermore, the City has a critical need to repair or replace facilities built many decades ago, which include police and fire stations, community centers, library, wharves, city offices, and parking facilities. Today, the City is faced with balancing the funds available to the NCIP between neighborhood improvement projects and reinvestment into existing public-serving facilities.
The Neighborhood and Community Improvement Program (NCIP) is always working to complete a backlog of projects. There are many factors that affect the schedule of projects for completion – engineering staff time/capacity to prepare the scope of work and other specifications, scheduling crews, obtaining materials, working through permits and approvals, and balancing other scheduled or emergency projects. Here is the current total number of NCIP projects by category: Active Projects (as of July 2024) = 59 Completed Projects (between April 2020 and July 2024) = 71 Nominated Projects (for FY 2024-2025) = 83, with approximately 40 scheduled to be funded later this fall
A fund was created in 1985, and it was expanded into a program in 1988. The Neighborhood and Community Improvement Program (NCIP) directs tourist-generated dollars directly back into the City's residential neighborhoods. Under a Charter Amendment, at least 16 percent of the money collected through hotel taxes (Transient Occupancy Tax) is allocated to neighborhood and community improvements. Each fiscal year, a committee appointed by the City Council consisting of Monterey residents from each of the 17 City neighborhoods considers all nominated projects and makes a recommendation to City Council of which projects should be funded. A number of public meetings are held to discuss the nominated projects before projects are finally voted on and ranked by the NCIP committee. The NCIP program cycle begins in January each year with meetings held throughout the spring and summer. Projects are not finally approved until City Council has allocated funding to them, which normally occurs in late summer/early fall. More NCIP Program information is posted at monterey.gov/ncip.
NCIP benefits and challenges
Active, Completed and nominated NCIP projects
Examples from past years' NCIP projects
The finalized ADA Transition Plan will be published at haveyoursaymonterey.org. (Photos on left show an example of a curb ramp needing improvements (top), and an intersection with a curb ramp completed and in compliance with federal ADA rules.)
Here's a sample of completed projects funded through NCIP that address forest management, parks improvements, equipment replacements, safety and other matters normally funded through general, gas tax and other funds. The full list of projects are linked by year on the projects page at monterey.gov/ncip. FY 2023/24 (12 Total Completed Projects To-Date) Fishermen’s Flats Traffic Calming Plan Veterans Park West Parking Lot Hartnell St. & Webster St. (Post Office) Crosswalk Monterey Bay Park Dune Restoration FY 2022/23 (15 Total Completed Projects) Laguna Grande Playground Equipment Capitol Site Fuel Reduction Pearl/Figueroa Street Intersection Accessible Beach Mats FY 2021/22 and FY 2020/21 - Due to the City's fiscal emergency resulting from the COVID-19 pandemic, the City of Monterey experienced one of the largest financial losses of any City in California, and the NCIP applications were on hold during these two fiscal years. FY 2019/20 (13 Total Completed Projects) Skyline Greenbelt Fuel Reduction Scholze Park Improvements Del Monte Beach Boardwalk Repairs Via Isola Radar Speed Sign Installation A project summary list and approved projects manuals are posted on the City's website on the projects page of monterey.gov/ncip.
ada transition plan funding needs
The Americans with Disabilities Act (ADA) of 1990 requires each public entity to conduct and maintain an ADA Transition Plan. This Plan identifies where a facility, program, service, or practice may be deficient according to current ADA standards. Once identified, it will rank the deficiency for overall importance, provide a rough cost estimate to bring the item into compliance, and create a schedule to complete the required repairs. If the entity does not have and maintain a current ADA transition, it will be out of compliance with federal law. The U.S. Department of Justice (DOJ) has required all jurisdictions to maintain and update (as needed) ADA Transition Plans. Transition Plans must include a self-evaluation of all programs, services, and activities in addition to access to all City-owned facilities. By updating the existing ADA Transition Plan, the City of Monterey will stay in compliance with the requirements set forth by the Department of Justice. The City of Monterey is finalizing an updated ADA Transition Plan that will be published in late summer 2024. As part of our strategy to fund our infrastructure needs, we are calculating the funds needed to maintain compliance with federal ADA laws. Below are current estimates.
WHAT ARE OPTIONS? Difficult choices...
ADA INFRASTRUCTURE NEEDS
ESTIMATES
Buildings/Facilities
$10 million
City Parking
$2.4 million
City Parks
$11.5 million
Right of Way (roads)
$18.5 million
TOTAL
$42.4 million
ada FUNDING ESTIMATES
ada transition plan
POTENTIAL SOLUTIONS
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FUNDING shortfall: 5-Year Needs vS. funding (Through FY 28-29)
IMPORTANT NOTES: 86% of funds for CIP projects are restricted funds. Competing for General Funds (GF): *Includes assumption of GF availability of $2.5 million per year for four years (approximately 2% of GF). These estimates do not including parking needs or parking funding, or ADA Transition Plan funding needs.
Version, Final, July 18, 2024
Measure P (2015 - 2019) followed by Measure S (2019 - 2027) (fixing streets, sewers, storm drains). To continue funding to include facilities, this measure needs to be renewed in 2027. Measure G (half cent per dollar sales tax) sunsets in June 2029 - to continue funding, this measure needs to be renewed in 2029. Neighborhood Community Improvement Program (NCIP) is a stable source of revenue for the city and if used for critical infrastructure maintenance can reduce the need for increased taxes or cuts to services. NCIP in its current form needs to be evaluated and assessed to provide more significant funding for assets benefiting all neighbors and neighborhoods; in effect, fire stations, police station, community centers, library, city hall offices, public restrooms. Other Initiatives and Future Projects 1) Fleet Electrification; 2) Fire Station – Hwy 68; 3) Undergrounding Utilities; 4) Public Safety Facility Building; 5) North Fremont/Lighthouse/Downtown Specific Plans; 6) Sea Level Rise
580 Pacific Street, Monterey, Calif. 93940 (831) 646-3799 suggest@monterey.gov monterey.gov and on social media @cityofmonterey
Total five year projections through FY 2028-29: CIP FUNDING AVAILABLE = $50,708,000 (General Fund, Measure P/S, Measure X) Facilities NEEDS = $26,120,000 Right of Way NEEDS = $49,000,000 Wharves NEEDS = $17,700,700 TOTAL SHORTFALL = ($40,580,700)
1. Maintain Status Quo? Our infrastructure cannot withstand this level of neglect. It impacts our residents who use the facilities and our workforce who work in them. 2. Increase CIP Contribution to 20% Goal from General Fund? This would not be possible without significant cuts to City services, staffing, and the closure of community facilities. 3. Establish a Parcel Tax or Bond Measure? Parcel tax would make housing even less affordable and a bond measure would burden future operating revenue. 4. Prioritize Neighborhood and Community Improvement Program (NCIP) for Community Projects? Prioritize key community capital projects using NCIP funding.