Carmel-by-the-Sea residents will decide Tuesday, Nov. 3, whether to approve two tax increases projected to raise a combined $3.7 million a year for streets, beach erosion control and stormwater systems.

Measure M would add 2 percentage points to the city's transient occupancy tax, raising the hotel tax rate from 10% to 12%. City Attorney Brian Pierik's impartial analysis estimates the increase would generate about $1.9 million annually. That's $5 more on a $250 hotel room. The City Council voted 5-0 on June 2 to place it on the ballot.

Measure N would raise the city's transactions and use tax by 0.375 percentage points, from 1.5% to 1.875%. Pierik's analysis of that measure projects about $1.8 million in new annual revenue. The council voted 4-1 to put it before voters.

Both are general taxes requiring a simple majority to pass.

The council argues the money is overdue. Carmel's 10% hotel tax rate has held steady for 28 years, according to city ballot arguments, while neighboring Pacific Grove and Monterey both charge 12%. The council estimates deferred maintenance on streets, sidewalks, stormwater systems and beach hardening tops $100 million.

In a rebuttal argument approved at an Aug. 14 special meeting, the council said the opposition's claim that hotel guests already pay 12% is misleading. The council stated that the extra 2% guests currently pay is a Carmel Hospitality Improvement District assessment the hotel owners imposed to fund Visit Carmel marketing. That fee is not city tax revenue.

Supporters organized as Citizens for Carmel's Future back both measures. An opposition committee, "NO on TOT Tax," has formed against Measure M, according to the Carmel Residents Association.

For Measure N, the council frames the 0.375% sales tax bump as a "use it or lose it" opportunity. If Carmel does not claim the increment, Monterey County or another regional agency could capture those locally generated dollars instead. The increase would add about 19 cents to a $50 restaurant bill. Most grocery purchases would be exempt. Both residents and visitors would pay the tax on retail sales in the city.

Candidates forum Tuesday

Before the ballot measures take center stage, the Carmel Residents Association hosts a candidates forum Tuesday, Sept. 15, at the Carmel Woman's Club. Doors open at 5 p.m. and the program starts at 5:30 p.m.

Five candidates for mayor and city council will take questions from residents. Paul Miller, owner and editor of the Carmel Pine Cone, will moderate. The forum will be recorded and posted on the CRA website the following day.

Mayor Dale Byrne is not seeking re-election. Jeff Baron pulled papers for a council seat but later withdrew, according to the CRA's election watch page. Carmel-by-the-Sea had about 2,432 registered voters as of April, according to the Carmel Pine Cone.

The Carmel-by-the-Sea Chamber of Commerce hosts a separate forum focused on business and economic issues Tuesday, Sept. 22, at 6 p.m. at the Church of the Wayfarer. Citizens for Carmel's Future holds a town meeting on the tax measures Thursday, Sept. 17, from 4:30 to 6 p.m. in Carpenter Hall.

Vote-by-mail ballots go out Oct. 5. The last day to register is Oct. 19.