Pardon the Dust: Carmel Sales Tax Hike Pays Off, Improvements to Begin this Summer

After four-years of cuts as the beleaguered economy plods its way out of the recession, Carmel-by-the-Sea's budget is finally making progress. 

The projected 2013-14 budget shows a $3.2 million increase over last year's $15 million budget, the first after four years of cuts. 

That increase is due mostly to funds from Measure D, a voter-approved one-cent sales tax increase that generates an additional $2 million a year. The additional $1 million boost comes from increased sales and transit-occupancy taxes, thanks to more shopping and hotel stays. 

The city's already begun paying off its CalPERS debt, and July 1, will begin putting the rest of Measure D funds to use. 

About $1.1 million is dedicated to road maintenance and capital projects. 

“For the first time in close to a decade, we will have a meaningful capital budget, and we’ll be getting caught up,” Mayor Jason Burnett says. 

That's the good news. But for residents accustomed to quiet streets, that will also mean being patient with construction noise and delays as the city repaves and repairs infrastructure, Burnett cautions.

Revenues are projected to keep growing over the next five years, according to the budget.

"The City Council’s leadership in developing a less expensive retirement tier plus implementation of the additional sales tax revenue enabled the city to chart a course to stability," City Manager Jason Stilwell wrote in a budget report released earlier this month.