MONTEREY >> The first city council meeting of June is expected to garner a bit more public engagement than usual, as the council will vote on implementing a rainbow crosswalk in addition to approving budget measures for the next fiscal year and potentially making more permanent changes to the Neighborhood and Community Improvement Program.

During a special meeting May 23, the council voted to continue the discussion on whether to create a rainbow crosswalk in the city, after hours of public comment.

Mayor Tyller Williamson and Council member Gino Garcia praised the effort and said they would vote in support, with the contention that more efforts were made to raise outside funding.

Both Council members Ed Smith and Jean Rasch shared their concerns and opposition to the rainbow, a symbol of LGBTQ pride. Smith cited residents with certain religious beliefs and the timing of the special meeting. Meanwhile, Rasch asked for more information to be given at the June 3 meeting about the safety and visibility of the crosswalk.

Vice Mayor Kim Barber was absent during the special meeting.

The council will discuss the NCIP Committee process and ways to make it more “consistent, inclusive and transparent,” according to the June 3 agenda.

Currently, the NCIP committee is an ad hoc committee created annually. The group oversees the recommendation and prioritization processes of neighborhood improvement projects, which are funded by a portion of hotel tax revenue.

Tuesday’s discussion will center around whether the council wants to make the committee more permanent. One option will be to form a standing committee or a permanent committee with clear bylaws, expectations and oversight. This would allow for staggered terms, ongoing training and more public involvement.

The council won’t vote on any final decisions Tuesday, but will give the staff direction to create a proposal for a future date.

The council will also vote on adopting the budget for fiscal year 2025-26, which includes a projected $255.8 million in revenues and expenditures across all city funds.

The proposed budget reflects continued financial strain, including a projected $10.5 million deficit in the General Fund.

The city’s Finance Department attributes the deficit to rising costs, including employee salaries, insurance premiums and increased demand for services. Salary increases, many set by newly negotiated labor contracts, account for a major portion of the rising expenses.

Despite cost-saving measures, like a 7% cut across departments and freezing some vacant positions, city staff say the gap must be bridged using reserves, restructuring financial obligations and savings from the current fiscal year.

The budget maintains funding for some community priorities, such as First Night Monterey and rental assistance, but eliminates the Special Event Support Program. It also includes five new positions in Human Resources, IT, economic development and public works.

Additionally, the proposed budget outlines $21.9 million for capital improvement projects, including street and wharf maintenance, sewer upgrades and Sports Center repairs.

City officials emphasized the importance of long-term financial planning, warning that insurance and labor costs are expected to continue rising.

The council will also vote on a resolution to adopt salary schedules for full-time, part-time and seasonal employees.

If approved, the new budget and salary schedule will take effect July 1.

The Monterey City Council will meet at 4 p.m. Tuesday, at Monterey City Hall, 580 Pacific St. The meeting can be streamed online and via Zoom at https://monterey-org.zoomgov.com/j/1607729333.