Former Pacific Grove Councilmember Luke Coletti has submitted to the city a proposed summary of a referendum seeking to appeal a decision by the P.G. Council on May 7 to increase council compensation, the first increase in 26 years.
The council voted 5-2 to increase councilmembers' monthly compensation from $420 to $966 and the mayor's monthly compensation from $700 to $1,610, effective immediately after it goes into effect. They rejected the idea of putting it up to a vote of the people, or waiting for it to take effect after the next election in 2026.
The increases reflected a 5 percent increase per year since the last increase, as allowed under a state law passed in 2023. The council could have sought a higher increase but took a conservative approach.
Coletti submitted a letter to the P.G. City Clerk's office on May 23. On Saturday, May 31 he issued a press release under the name Transparent Pacific Grove saying the group was pursuing a referendum.
The proposed referendum asks that the decision to increase salaries be put to a vote of the electorate or that the council reconsider and repeal it.
The press release points out that the council received an "ominous" report about the city's fiscal condition on April 16 that included a $55 million unfunded pension liability plus $5.5 million in pension bonds, 30 percent increases in liability insurance and projected budget deficits in the coming years.
Coletti called the council's decision to increase compensation a "self-serving process," insisting that state law prevents salary increases from taking effect until after the next election and stating that the "mayor and council used our charter city status to bypass this state law in order to give themselves an immediate 130 percent salary increase."
The council did not decide on whether to include health care coverage, saving that for another time. Coletti warned that Mayor Nick Smith was intending to pursue the coverage.
The current annual cost to the city for the compensation is $38,640, according to a Transparent Pacific Grove chart. With the increase it will be $88,872. If all seven members took individual coverage it could cost the city $93,072, or $179,172 for a family.
During the meeting on May 7, Smith called the increase "extremely important" in recruiting future candidates. One of the intents of the state law was to attract a more diverse field of candidates from different income levels.
Councilmember Cynthia Garfield suggested people could cover child care costs, with Councilmember Tina Rau adding that it could also help cover the cost of elder care.
"I believe this [increase] is measured, conservative, responsible and is long overdue," Rau said.
According to a recently launched website, Transparent Pacific Grove posted a schedule of locations and times that volunteers will be collecting signatures on the referendum, beginning June 9. Volunteers will also bring petitions directly to people who request it.
The referendum will need 10 percent of registered voters to sign the petition. There are currently 10,601 registered voters, which means it will need 1,060 to pass. The group will have until July 9 to collect signatures.