A referendum to reverse a P.G. Council pay raise gathers steam – and acrimony.

It’s been the proverbial “third rail” of Pacific Grove politics, whether to give the mayor and six councilmembers a raise. Each time it’s come up for a vote at council, it’s been rejected, following complaints by constituents that the jobs should be essentially volunteer and threats of defeat at the ballot box.

That changed May 7, when the P.G. City Council, led by Mayor Nick Smith, voted 5-2 in favor of an increase based on Senate Bill 329, passed in 2023, which amended state law on compensating councilmembers. The changes allow for a five-percent increase per year since the last increase, in P.G.’s case, 1998. It means councilmembers would see an increase from $420 to $966 per month. In the mayor’s case the increase is $700 to $1,610. In either case, it’s a 130-percent increase.

The law allows for an even greater increase in compensation based on inflation, not exceeding 10 percent per year. Other cities took that route – the Marina City Council approved raises from $200 to $2,000 for councilmembers and from $250 to $2,500 for mayor, a 900-percent increase.

P.G. councilmembers who voted in favor of the raises – in part to encourage future participation of residents from diverse economic backgrounds – took a conservative approach, understanding there would be pushback.

That pushback came two weeks later in the form of a referendum filed by former councilmember Luke Coletti, representing a group called Transparent Pacific Grove. Citing projected budget challenges in the coming years, Coletti called for the decision to go to the voters in an election or be rescinded by the council.

In order to win, Transparent P.G. needs 10 percent of the city’s registered voters to sign a petition, or 1,060 certified signatures. Volunteers have been collecting signatures since early June and have until July 7.

Opponents of the referendum have suggested that some volunteers were incorrectly telling people that the increase in compensation included health care and future raises. Former mayor Bill Peake brought up the question during a council meeting on June 18. Coletti clapped back, accusing Peake and others of spreading disinformation.

“We’ve already gotten the signatures so it’s a moot point at this point,” Coletti said. He promised the group would deliver the signatures a week early on July 1.

When asked how many signatures had been collected, Coletti did not give a specific number, only saying there were “lots.”