Some forecasts
indicate that the United States and
California economies will both slow down
in 1999 as a result of the combined
impacts of Asia's economic crises and
stock market volatility. The economy in
Monterey County, however, is expected to
continue to expand, with anticipated
increases in population, housing
construction, employment, and retail
spending. Government and the tourism and
agriculture industries will continue to
provide a strong economic base. However,
studies identify politics, infrastructure
capacity, and water supply as risk
elements to the long-term economic
well-being of Monterey County.(21)
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The relationship between private sector
growth, taxes, and public sector benefits has not
been carefully analyzed for Monterey County and the
cities. Although statistics are available for each
leading economic sector, no study has compared
these to changes in infrastructure, environmental
quality, public services, or other factors
affecting residents' quality of life. It is
important to analyze how the economic benefits of
growth have been distributed, whether job growth
has resulted in fewer residents living below the
poverty line, whether increased housing
construction has created more affordable housing,
and if tax revenues from increased retail sales
support better planning and community
development.
Employment and Income
California's seasonally adjusted unemployment
rate dropped to 5.7 % in January 1999, down 0.3
percentage points from January 1998. For the
twelve-month period from January 1998 to January
1999, the Monterey County unemployment rate
averaged 10.8%, ranging from 6.2% (August 1998) to
18.7% (January 1999). Seasonal fluctuations in
agricultural and tourism jobs account for these
employment patterns. In this same period, Monterey
County employment grew by 4,300 jobs. The largest
increase was in services (up 1,500 jobs).
Construction followed with 700 jobs, then retail
trade with 600 jobs, primarily in eating and
drinking establishments. Agricultural employment
was down by 500 jobs. Monterey County median family
income for 1997 was $45,600.(22)
Retail Sales
Monterey County retail sales revenues grew by 7.1%,
or $156 million, from 1995 to 1996, to total $2.36
billion. In 1997, total annual retail sales climbed
to $2.5 billion, a 6.15% increase from 1996. The
City of Salinas had the largest net revenue growth
with $52.87 million. The second largest net revenue
growth was reported in Sand City with $24.52
million.(25) The
significant growth is attributed to substantial
increases in tourism, gradual increases in
population, and the expansion of national and
regional retailers in the cities of Salinas,
Seaside, and Sand City.(21)
Table
19--Monterey County Annual Retail Sales
1996-1997 in thousands |
|
1996 |
1997 |
Net Retail
Growth |
% Change |
Carmel |
$ 145,946 |
$ 151,016 |
$ 5,070 |
+3.47% |
Del Rey Oaks |
$ 12,770 |
$ 12,843 |
$ 73 |
+0.57% |
Gonzales |
$ 12,236 |
$ 11,999 |
($ 237) |
-1.94% |
Greenfield |
$ 14,762 |
$ 17,416 |
$ 2,654 |
+17.98% |
King City |
$ 57,942 |
$ 61,602 |
$ 3,660 |
+6.32% |
Marina |
$ 51,044 |
$ 49,641 |
($ 1,403) |
-2.75% |
Monterey |
$ 391,665 |
$ 398,769 |
$ 7,104 |
+1.81% |
Pacific Grove |
$ 104,754 |
$ 110,288 |
$ 5,534 |
+5.28% |
Salinas |
$ 927,534 |
$ 980,038 |
$ 52,504 |
+5.66% |
Sand City |
$ 90,307 |
$ 124,749 |
$ 34,442 |
+38.14% |
Seaside |
$ 244,309 |
$ 250,427 |
$ 6,118 |
+2.50% |
Soledad |
$ 18,263 |
$ 19,179 |
$ 916 |
+5.02% |
Unincorporated Areas |
$ 288,839 |
$ 314,629 |
$ 25,790 |
+8.93% |
Monterey County Totals |
$ 2,360,370 |
$ 2,502,596 |
$ 142226 |
+6.03% |
Tourism
In 1997, travel and tourism spending in Monterey
County increased 7.3% from the previous year, to
$1.5 billion. The total economic impact of travel
and tourism in 1997, including direct and indirect
spending, produced $2.4 billion in Monterey
County.(21) Tourists
visiting Monterey County spend more per capita than
tourists in any other county in California. Revenue
from Monterey County's Transient Occupancy Tax
(TOT) increased 4.19% to $32.8 million in the
1997-1998 fiscal year. The City of Monterey
collected $12.6 million in TOT revenue, 38% of the
county total. The City of Salinas generated $1.1
million of TOT revenue, or 3.4 % of the county
total.(26) The unincorporated areas of Monterey
County generated $10.43 million, or 32% of the
county total, primarily from Pebble Beach
Resorts.(21)
Table
20--Collection of Transient Occupancy Tax
by Jurisdiction 1997 and
1998 |
Monterey County
Jurisdictions |
TOT Ending
6/30/97 |
TOT Ending 6/30/98 |
% Change 97-98 |
City of Monterey |
$ 11,816,453 |
$ 12,630,760 |
+6.9% |
Monterey County |
$ 10,544,268 |
$ 10,434,970 |
-1.0% |
Carmel |
$ 3,468,094 |
$ 3,591,096 |
+3.5% |
Pacific Grove |
$ 2,455,412 |
$ 2,540,000 |
+3.4% |
Seaside |
$ 1,444,890 |
$ 1,739,897 |
+20.4% |
Salinas |
$ 1,059,270 |
$ 1,141,784 |
+7.8% |
Marina |
$ 477,184 |
$ 495,327 |
+3.8% |
King City |
$ 193,852 |
$ 200,095 |
+3.2% |
Soledad |
$ 80,483 |
$ 87,159 |
+8.3% |
Greenfield |
$ 13,870 |
$ 14,417 |
+3.9% |
Gonzales |
$ 3,100 |
$ 3,336 |
+7.6% |
Total |
$31,556,876 |
$ 32,878,841 |
+4.2% |
Source: Result
Consulting |
Real Estate
Monterey County single-family home sales totaled
2,571 in 1998 and surpassed home sales in 1997 by
300. Condominium and townhouse sales increased to
399 in 1998, 49 more sales than 1997. Countywide,
the median single-family home sale price rose by
$6,210 in 1998, representing an increase of
2.6%.(8)
Construction Activity
Residential construction was valued at $277 million
in 1998, down $22 million from 1997. New
single-family construction increased in value by $3
million in 1998, to $226 million, and new
multi-family valuation decreased by $26 million in
1998.
In 1998, a total of 1,166 residential building
permits were issued, down 544 from 1997.
Countywide, building permits for single-family
homes decreased by 200, and permits for
multi-family homes decreased by 341. Most of the
building activity occurred in Salinas (502), the
unincorporated areas of Monterey County (344),
Soledad (92), Gonzales(60), and King City(59).
Non-residential construction valuation in 1998
totaled $136 million, up $30 million from 1997.
This includes new, alterations, and additions to
commercial, industrial, and other non-residential
construction activities. In 1998, new
non-residential commercial construction was
strongest in the unincorporated areas of Monterey
County ($52 million, up 74% from 1997) and in
Salinas ($50 million, up 36% from 1997).(7)
Agricultural Sales
Agriculture remains the largest sector of Monterey
County's economy. Gross sales of agricultural
products totaled $2.3 billion in 1998, an increase
of $26 million from 1997.(23)
The annual report of the Monterey County Overall
Economic Development Program identifies four major
problems facing agriculture in California:
conversion of farmland to urban uses, soil erosion,
salinity, and possible shortage of affordable
water. The report states that the 1982 Monterey
County's General Plan prohibits the conversion of
agricultural land to other uses and that this
policy will require strong support from the Board
of Supervisors to remain viable.(24) |
