The Pacific Grove City Council will discuss and potentially approve the Fiscal Year 2025/26 — 2026/27 Capital Improvement Plan during a regular meeting on Wednesday.

The Capital Improvement Plan, one half of the fiscal year budget, outlines infrastructure projects aimed at maintaining public assets and improving city services over the next couple of years.

For the first time, the city is shifting to a two-year budget process, allowing for greater efficiency in financial planning and project execution, according to Wednesday’s agenda. The proposed Capital Improvement Plan includes 16 projects totaling $13.3 million, funded primarily by non-general fund sources.

Among the proposed projects, three multi-funded initiatives — street rehabilitation, mandated ADA improvements and crack and slurry seal — will receive $4.3 million in funding. These projects aim to enhance road conditions, ensure ADA compliance and extend pavement life. An additional $9 million will go toward facility repairs, sewer upgrades, emergency services and community-enhanced amenities.

The Council will also vote on a resolution adopting the Fiscal Year 2025-2026 Senate Bill 1 Project List. The funding, estimated at $392,975, will help finance road rehabilitation and maintenance, ensuring compliance with state transportation guidelines.

With $1 million sourced from the General Fund, Pacific Grove is leveraging community donations and other revenue streams to minimize the financial burden on city reserves. Donations will contribute to facility and park improvements, including upgrades to the Public Library and Chautauqua Hall.

Once approved, the Capital Improvement Plan projects will undergo environmental review to ensure compliance with state regulations. Council members may propose modifications to the plan before finalizing the proposal in the city’s budget.The council will also deliberate on a proposed ordinance aimed at increasing the compensation for the mayor and council members, as well as extending medical benefits currently available to city management employees.

This proposal aligns with Senate Bill 329, allowing cities with populations of 35,000 or less to raise councilmember compensation from $300 to $950 per month. Alternatively, cities may opt for increases based on a 5% annual increment since the last adjustment or align with inflation rates, capped at 10 percent per year. The legislation acknowledges that the compensation framework for general law cities has remained unchanged since 1984, failing to keep pace with inflation. It suggests that adjusting compensation could promote diversity within city councils by enabling individuals from varied income backgrounds to serve without financial hardship. This move is happening across the Peninsula, with the Marina city council increasing the mayor’s monthly compensation from $250 to $2,250 and councilmembers’ from $200 to $2,000 in March. The Seaside City Council approved raising councilmembers’ monthly pay from $400 to $2,400 in March as well and the Monterey City Council is slated to vote on similar measures during their first regular meeting in May.

In Pacific Grove, the city charter permits compensation adjustments for elected officials. The proposed ordinance would not only increase salaries but also provide medical benefits to the mayor and council members, aligning their benefits with those of city management employees.

The Pacific Grove City Council will meet at 6 p.m. Wednesday at Pacific Grove City Hall, 300 Forest Ave. The meeting will be streamed online and can be participated in remotely via Zoom at https://www.cityofpacificgrove.org/Zoom_CC.