Monterey eyes local stimulus plan for businesses and renters

MONTEREY, Calif. (KION)

This week, Monterey city officials revealed more about the hit the coronavirus pandemic will have on the city's wallet - a projected $10 million blow to General Fund revenue, 12 percent of the city's total.

To make up for the loss in revenue, the city said they had to turn to layoffs. The April 21 City Council meeting will include a proposal to save $943,527 a month ($11.3 million annual total) by cutting 106 city positions - 83 current employees and 23 vacancies. They are also considering moving $10.6 million from the Capital Improvement Program and Neighborhood and Community Improvement Program to the General Fund.

But at this same April 21 meeting, the city has its eyes set on recovery. How do they keep businesses operating and keep their work force from leaving?

The report ahead of Tuesday's meeting shows two programs:

• Local Economic Recovery Plan
• Rent Payment Assistance Program

The Local Economic Recovery Plan is put forward as a $1 million project "to rescue businesses from permanent closure and provide some monetary assistance to reduce the “give up factor” wherein small businesses struggle, give up hope and shutter permanently."

Travel restrictions, social distancing guidelines and the take out/delivery only limitations for restaurants have been brutal for a city where 35% of the General Fund is from tourism, according to the council agenda report.

The City would work with the Monterey Peninsula Chamber of Commerce and the Community Foundation to come up with the program and how they would select the businesses. Those two groups are already working on a "Monterey Peninsula Small Business Relief Fund."

The Rent Payment Assistance Program is a $600,000 program "to ensure the local workforce is retained and ready to resume work when the economy returns." The plan, as of now, is to prioritize workers who lost their jobs in Monterey.

A statement released Friday by the Monterey County Convention & Visitors Bureau includes these figures from the Monterey County Hospitality Association: Dozens of hotels have closed and more than 13,000 hospitality workers have been laid off.

This program would be funding through $152,000 provided in the Federal CARES Act and and $450,000 from the State Community Development Block Grant (CDBG) program.

This is a developing story.