"Because of budget constraints, like many other cities, Monterey has fewer dollars to be able to put on these kinds of activities," city spokeswoman Anne McGrath said.
McGrath added that safety concerns related to the large crowd that was expected factored into the decision to cancel the display. The event has drawn tens of thousands of people to Del Monte Beach in recent years.
The city is also banning all fireworks, including those classified as "safe and sane." The Monterey police and fire departments will patrol the city on July 4 and issue fines of up to $1,000 to anyone caught selling, displaying, possessing or discharging fireworks.
Revelers can still partake in the Fourth of July parade in downtown Monterey at 10 a.m., followed by a lawn party in front of Colton Hall at 11 a.m.