Title
Adopt a resolution supporting budget priorities for future discretionary funds made available to use in the unincorporated area of the County of Monterey.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a resolution supporting budget priorities for future discretionary funds made available to use in the unincorporated area of the County of Monterey.
DISCUSSION/SUMMARY:
Despite efficient management and stewardship of the County fiscal resources, the County faces significant challenges which include impacts from the inflated housing market and growing response to emergencies. These challenges were presented during prior Board of Supervisor (Board) meetings. On March 12, 2024, the County Administrative Office (CAO) presented the countywide financial forecast to the Board, which indicated continued growth in discretionary revenues. However, the growth is not sufficient to keep up with the increased cost of doing business. An update about the County's financial condition was provided to the Board during its April 2, 2024, budget workshop.
The County is working toward securing funds to ensure service needs can be met including working on grant funding opportunities and a potential increase in the County's sales tax. On June 27, 2024, the Board adopted a resolution calling for an election for the purpose of submitting to the qualified Electors of the County a Measure to raise the Retail Transactions and use Tax (Sales Tax) in the Unincorporated Area by One Percent. The Board directed the Sales Tax be put on the ballot as a general tax. Annual revenue from a successful district sales tax at 1% per dollar is estimated at $29 million.
Background
As of March 2024, the California Department of Finance (DOF) projects the County's population at 432,301. The local economy is primarily based on tourism in the coastal regions and agriculture in the Salinas Valley. The education and research institution sector and non-profit sector also c...
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