Voters Reject Sales Tax Increase in City of Monterey

Based on latest results from the Monterey County Elections Office, 51.14% of City of Monterey voters rejected Measure D, a measure on the June 2, 2026 to raise the existing 0.5% sales tax by another 0.375%. The City Council had declared a fiscal emergency at its February 17, 2026 meeting and then proposed the tax increase.

Some voters may have remembered the City Council declaring a fiscal emergency at its November 19, 2019 meeting, at which time it put the original 0.5% sales tax on the March 3, 2020 ballot as Measure G. It was approved by 63.43% of voters.

Your Chamber has sensed all year that business owners and community leaders were lukewarm at best towards the city council's proposed tax increase (and additional tax measures the council planned for the November election ballot). We urged the Monterey City Council to show the public that it is as serious about restraining city spending as it is about imposing tax increases. While the city council held a special meeting about budget cuts on April 29, 2026, this was apparently not enough to win sufficient voter confidence.

Your Chamber still insists that a stronger city focus on economic development would increase tax revenue for the City of Monterey and offset pressure for tax increases and budget cuts and freezes. We are aware that some residents are leery of business growth, increased commerce, and new housing; nevertheless, the outstanding services they enjoy and expect from the City of Monterey are not free.

Voters in North County Reelect Monterey County Supervisor Glenn Church

Your Chamber endorsed Monterey County Supervisor Glenn Church for reelection to a second term for District 2, and he was reelected with 70.13% of the vote (based on latest results). He represents the area of Prunedale, Castroville, Moss Landing, and some of northern Salinas and surrounding neighborhoods.

Monterey County Supervisor Kate Daniels Speaks to Your Chamber's Government Affairs Committee

On Monday, June 8, Monterey County Supervisor Kate Daniels was the featured speaker at your Chamber's Government Affairs Committee meeting and stayed for the entire meeting, with her Chief of Staff Kimbley Craig. She represents Carmel, Carmel Valley, Big Sur, Pacific Grove, Pebble Beach, Monterey, the Highway 68 corridor between Monterey and Salinas, Las Palmas, and Monterey Regional Airport. She discussed these priorities:

• Her proposal for a Property Transfer Tax on sales transactions over $10 million for single-family houses. The revenue would be used to supplement pre-construction expenses for housing that's affordable for middle class families.
• Ongoing county efforts to complete requirements of the county's latest (6th Cycle) Housing Element for 2023-2031. Delays have resulted in punitive state conditions that allow developers to apply for projects under "builder's remedy" regulations. These circumvent the county's established project approval process.
• Frustration about "politics" that undermines efforts to provide enough water for future Monterey Peninsula needs. She's the designated county representative to the board of directors of the Monterey Peninsula Water Management District.
• Her support for a moratorium on vehicle stops at the Bixby Bridge in Big Sur. However, she points out that the bridge is under state jurisdiction (Caltrans) and the regulations of the California Coastal Commission.

Upgrades Completed for Downtown Monterey Power Substation 

Chamber representatives attended a formal ribbon-cutting ceremony on June 4, 2026 to recognize Pacific Gas & Electric (PG&E) upgrades to the Monterey substation at the intersection of Figueroa Street and Del Monte Avenue. This is part of an ongoing PG&E capital improvement program to reduce local power outages by increasing the power capacity of various existing substations. Work is also happening at the Navy substation adjacent to Del Monte Avenue on the Naval Support Activity Monterey installation and at the Ford Ord substation on Gigling Road in the City of Seaside. Last year, PG&E completed upgrades to its Del Monte substation in the City of Monterey.

You've heard of special districts... but do you know what they actually do?

Join us for Special Districts, Big Impact to learn how these unique local government agencies support critical infrastructure, public services, economic development, and quality of life throughout our region. Hear directly from district leaders and gain valuable insight into the organizations working behind the scenes every day.

Wildfire season is here. Preparing now can help safeguard your family, reduce potential damage, and make recovery easier if a wildfire impacts Monterey County. For preparedness tips, visit ReadyMontereyCounty.org.

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