City of Carpinteria
Special City Council Meeting (State of the City & Town Hall) Agenda
Monday, August 31, 2026
Veterans Memorial Building, 941 Walnut Avenue, Carpinteria, CA 93013 4:45 p.m. Special Meeting
In-Person Participation
Attendance/Viewing Options:
• Attend the in-person meeting at the Veterans Memorial Building (941 Walnut Avenue).
• View the meeting live through the City’s website (https://carpinteriaca.gov/cityhall/agendas-meetings/). • View the meeting on Government Access Television Channel 21 (broadcast live and rebroadcast on the Wednesday and the Saturday following the meeting at 8:00 p.m. and 5:00 p.m., respectively).
• Call 669-900-9128 (and enter Webinar ID 849 5178 9727) to listen to the meeting. • Join the City’s Zoom webinar by CLICKING HERE. Alternatively, you can join the Zoom webinar by logging on to www.zoom.us, downloading the application, selecting “Join Meeting”, and entering Webinar ID 849 5178 9727. • Spanish interpretation will be available at the in-person meeting and through the City’s Zoom webinar.
Public Comments
• Provide a live public comment during the in-person meeting at the Veterans Memorial Building (941 Walnut Avenue). For this meeting, public comment will be limited to 1 (one) minute per speaker.
• Though this meeting is viewable through the City’s Zoom webinar, public comment via Zoom will not be available for this meeting. • Submit a written comment (as either a general public comment or on a specific agenda item) to be distributed to City Council by 12:00 P.M. on the day of the meeting by either submitting your comment via (1) email to [email protected], or (2) follow this link (https://carpinteriaca.gov/city-hall/agendas-meetings), select the meeting you want to provide a comment on, and click the Submit Comments button located on the left hand side of the agenda portal. Please reference the agenda item to which your comment pertains. Although written comments become part of the record, they will not be read aloud at the meeting.
City Council Special Meeting Agenda
August 31, 2026
Levine Act Warning
Applicants and their agents before the City Council are subject to the campaign disclosure provisions detailed in Government Code Section 84308. No City Council Member may accept, solicit, or direct a contribution of more than $500 from any party for 12 months following the date a final decision is rendered by the City. No City Council Member may accept, solicit, or direct any contribution from an agent of the party during the same time frame. This prohibition commences when an item involving the entitlement has been placed on the City Council’s agenda for a public meeting, when the City Council Members knows the action is within the City Council’s jurisdiction and it is reasonably foreseeable that it will come before the City Council as a decisionmaker, or when the proceeding is before the City Council for its decision. A party to a City proceeding —which includes both applicants and agents—shall disclose on the record of the proceeding any contribution of more than $500 made to any Council Member by the applicant, or any donations made by the agent, during the preceding 12 months. No party to a City proceeding, or agent, shall make a contribution to a Council Member during the proceeding and for 12 months following the date a final decision is rendered by the City. Prior to rendering a decision on a City proceeding, any Council Member who received contribution of more than $500 within the preceding 12 months from any party, or who received any donations from an agent, to a proceeding shall disclose that fact on the record of the proceeding, and shall be disqualified from participating in the proceeding. However, if any Council Member receives a contribution that otherwise would require disqualification, and returns the contribution within 30 days of knowing about the contribution and the relevant proceeding, the Council Member shall be permitted to participate in the proceeding. If you believe that these provisions apply to you or a Council Member, please inform the City Clerk at the earliest possible opportunity. Failure to do so may affect the City’s ability to process your application.
CALL TO ORDER
ROLL CALL
PUBLIC COMMENT WILL ONLY BE HEARD CONCERNING THE AGENDIZED ITEMS BELOW
Schedule (Times are approximate and subject to change)
4:45 p.m. – 5:30 p.m. Community Engagement & Information Tables 5:30 p.m. – 5:45 p.m. Public Comment Period
5:45 p.m. – 6:15 p.m. Budget Overview
6:15 p.m. – 7:00 p.m. Measure I Information Presentation
City Council Special Meeting Agenda
August 31, 2026
7:00 p.m. – 7:30 p.m. Community Questions & Answers
ADJOURNMENT
The next regular City Council meeting will be held on September 14, 2026 at 5:30 p.m.
In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk's Office at (805) 755-4403 or the California Relay Service at (866) 735-2929. Notification two business days prior to the meeting will enable the City to make reasonable arrangements for accessibility to this meeting.
Materials related to an agenda item submitted to the City Council after distribution of the agenda packet are available for public review at the City Clerk's Office, located at 5775 Carpinteria Avenue, Carpinteria, CA 93013 or by going to the City’s website at https://carpinteriaca.gov/city-hall/agendas-meetings/.
This agenda was posted on Friday, August 28, 2026, in the City Clerk's Office, on the City Hall Public Notices Board, and on the Internet.
State of the CityAddress
August 31, 2026
Informational Tables
4:45 - 5:30 PM
State of the CityAddress
5:30 - 7:00 PM
Overview of Event
Budget Overview
City Manager Michael Ramirez
Measure I Informational Presentation
Mayor Natalia Alarcon
Community Questions & Answers
City Councilmembers
Budget Overview
Presented by City Manager Michael Ramirez
Budget Overview
Community Feedback Responses
Council Priorities & Financial Transparency
Funding Decision Framework
Revenue Sources
Top Deficit Drivers
Staffing & Comparisons
Cost of Sheriff's Services Relative to City Revenues
Managing a Budget Deficit
Next Steps
PUBLIC SAFETY: Maintain sheriff services, keep neighborhoods safe, and support emergency 911 response. (AVG: 2.36)
STREETS & ROADS: Repair streets, fix potholes, maintain sidewalks, and keep emergency routes in good condition. (AVG: 2.42)
FISCAL PRIORITIES: Retain and attract local small businesses, and maintain financial sustainability and transparency. (AVG: 3.0) EMERGENCY PREPAREDNESS: Reduce wildfire risk with brush management, maintain and repair storm drains to prepare for and mitigate flooding, and enhance emergency response to natural disasters. (AVG: 3.1)
PARKS & PROGRAMS: Maintain safe and clean local parks and recreational facilities, maintain library hours, and support valued senior and youth programs. (AVG: 3.15)
How did City priorities rank?
*of 584 responses
What residents would change
*of 584 responses
“If there was one thing you could change in Carpinteria, what would it be?”
What residents love
*of 584 responses
“What do you like most about living in Carpinteria?”
Council Priorities
1.Enhance public outreach, education, and
transparency
2.Maintain Carpinteria’s small town
beachside town character
3.Enhance quality of life for residents
4.Maintain fiscal sustainability of the City
Financial Transparency
Awards and Recognition:
Operating Budget Excellence Award – California
Society of Municipal Finance Officers (CSMFO)
Excellence in Financial Reporting – Government
Finance Officers Association (GFOA)
Financial Practices:
Monthly Treasurer’s Report
Expenditure list (bi-monthly)
List of agreements executed by the City Manager
Monthly Finance Committee meetings
Independent annual audit
More information: carpinteriaca.gov/budget
Funding Decision Framework
Before allocating resources, adding staff, extending contracts, or funding new initiatives, the City evaluates:
1. Legal and Regulatory Requirements
Is the activity required by federal, state, or local law? Is it necessary to maintain compliance with permits, mandates, or regulations?
2. Council Priorities and Strategic Goals
Does the expenditure support adopted Council priorities? Does it advance strategic plan objectives?
3. Service Level Impacts
What impact would approval or reduction have on community services?
Can service levels be maintained through alternative approaches?
Funding Decision Framework
Continued
4. Operational Efficiency
Can the work be performed more efficiently through process improvements, technology, or organizational changes?
Are there opportunities to eliminate duplication or consolidate functions?
5. Staffing and Contracting Evaluation
For vacancies, is the position still needed as currently structured? Can responsibilities be redistributed, reclassified, or contracted? For contracts, has the scope been reviewed and market pricing evaluated?
6. Financial Sustainability
Is there a sustainable funding source?
What are the long-term budget implications?
Economic and Financial Overview
Definitions
Revenues
Money the city takes in during a fiscal year to fund operations and services Includes taxes (sales, property, transient occupancy), fees, grants, and other charges for services
Recurring revenue supports ongoing operations; one-time revenue (grants, reimbursements) should not fund ongoing costs.
Expenditures
Money the city spends during a fiscal year on services, staff, projects, and obligations Includes personnel costs, contracts (e.g., public safety), and operations.
Can include one-time costs (like major infrastructure projects) that raise spending above revenue in a given year without signaling an ongoing problem.
Definitions
Available Fund Balance
The city's uncommitted, flexible cash on hand at a point in time Funds not already earmarked for a specific purpose or policy requirement Can be drawn down to cover one-time gaps or unexpected needs, but is not a sustainable source for ongoing costs
Committed Reserves (per Policy)
Funds set aside under city policy for a specific purpose (e.g., emergency response, economic uncertainty, asset replacements, special projects, cash flow stability) Not available for general spending (without Council Approval) — reserved to protect the city's financial stability
Distinct from available fund balance, which is uncommitted and more flexible
Revenues Total Expenditures Available Fund Balance Committed Reserves (per Policy) Fiscal Years
i
n
m
i
l
l
i
o
n
s
21/22 22/23 23/24 24/25 25/26 26/27
0 5
10 15
20 25
$15.9 $16.3
$17.1
$17.8 $17.7
$18.8
$15.4
$12.6
$17.6
$22.7
$18.6
$19.3
$8.3 $8.7 $7.7
$4.7
$5.1
$4.0
$6.0 $6.8 $7.2
$7.5
$7.8
$8.7
Ongoing City Financial Trends
Cost of Sheriff's Services Relative to City Revenues
Property Tax Public Safety + UAL Sales Tax TOT
I
n
M
i
l
l
i
o
n
s
Actual 21/22 Actual 22/23 Actual 23/24 Actual 24/25 Budget FY 25/26 Budget 26/27
0.0 0.5
1.0 1.5
2.0 2.5
3.0 3.5
4.0 4.5
5.0 5.5
6.0 6.5
7.0 7.5
Public safety costs are growing faster than other major City expenditure categories.
Since FY 2021/22, public safety costs have increased by more than 60%, nearly three times the rate of inflation over the same period, driven primarily by increases in the City’s contract with the Santa Barbara County Sheriff’s Office.
Public safety costs are projected to reach $7.5M by FY 2027 Sheriff’s contract exceeds any single one of the City’s top three revenue sources.
Top 3 City Revenue Sources
Sales Tax
Generated by local retail purchases by local residents and visitors Carpinteria's sales tax rate is 9%. Combined sales tax revenue has remained essentially flat: $5.97M in FY23 to $5.92M in FY25 — while cumulative inflation rose approximately 10% over the same period.
For every $100 in taxable purchases in Carpinteria, $9.00 in sales tax is currently collected. Of that amount, $2.25 goes to the City through the 1% local sales tax and the 1.25% Measure X transaction and use tax.
Transit Occupancy Tax
Generated by hotel and short-term lodging stays.
Tied to tourism and visitor activity.
COVID-impacted FY20, but rebounded strongly up 15.5% in FY25.
Property Tax
Generated by residential and commercial property values Prop 13 restrictions
Assessed values capped at 2%/year until sale.
The top 3 City revenue sources
bring in ~86% of revenue combined
The remaining 14% is comprised of miscellaneous
sources including charges for services, interest, fines and forfeitures, business licenses, permits, and grants. **Sheriff’s contract exceeds any single one of the City’s top three revenue sources.
Property Taxes Sales Tax
Transient Occupancy Tax Other Revenues
5.8M
4.1M
2.6M
6.2M
State of California Measure X City (Bradley Burns)
Measure A
County of Santa Barbara
0 1
2 3
4 5
6 Percentage of 9.00% Local Sales Tax
6 1.25
1 0.5
0.25 Location Percentage Received
State of California 6%
Measure X (City) 1.25%
City (Bradley Burns) 1%
Measure A County
Transportation Funds
0.50%
County of Santa Barbara 0.25%
Total Sales Tax
Percentage in
Carpinteria
9.00%
How Much of Your Sales Tax Goes to the City?
Currently 9.00% in Carpinteria
Location Percentage Received
Revenue Received in FY
25/26
Carpinteria Unified School
District
30.2% $10.5 M
Santa Barbara County
General
18.9% $6.6 M
Education Revenue
Augmentation
14.2% $5 M
Carpinteria-Summerland Fire
Protection District
13.1% $4.5 M
City of Carpinteria 9.4% $3.3 M
Property Tax = 1% of assessed property value*
of the 1%, the City receives 9.4%
Property Tax Revenue Distribution in Carpinteria
Top 5 Receipients of Property Tax Revenue
*Plus any voter-approved bonds (e.g., school or special district bonds) In general, Prop 13 caps annual increases at 2% (until ownership change)
What does new development actually generate in
property tax?
Under Prop 13, property tax is capped at 1% of assessed value That 1% is split among multiple taxing entities — Carpinteria receives just 9.4% of it Illustrative Example: 200 new units, each valued at $2,000,000 Total assessed value: $400,000,000
Total property tax collected (1%): $4,000,000
City's share (9.4% of that 1%): $376,000/year
Community Choices for the Future
Our community prioritizes quality of life, neighborhood character, and a smaller-scale commercial environment.
This means:
No major big-box retail centers
Few large hotels or resort properties
No auto dealerships
Limited large-scale commercial development
Financial Implications: While these choices help preserve community character, they also limit opportunities to generate additional sales tax and transient occupancy tax revenue compared with cities that have larger retail, hospitality, and auto sales sectors.
Strategies for
Managing a
Structural
Deficit
Adjust Service Levels
Reduce operating hours
Less frequent maintenance cycles
Delayed capital projects
Reduced programming
Lower service standards
Encourage Economic Growth
Support local business growth
Tourism promotion
New developments
Consider New Revenue Sources
Sales tax measures (on ballot for November 2026)
Transient Occupancy Tax increases (done)
Updated assessment districts (attempted)
Business License Tax rate restructuring
Parcel taxes
Strategies for
Managing a
Structural
Deficit
Improve Efficiency
Technology investments
Competitive bidding
Regional partnerships
Use of One-Time Resources
Available fund balance
Grants
One-Time Revenues and Reimbursements
Manage Staffing Growth
Strategic use of professional and contract services
Strategic use of technology to create operating efficiencies Creation of career paths
Number of Employees
2022/23 2023/24 2024/25 2025/26 2026/27
0 10
20 30
40 50
40 41
43 43 43
City of Carpinteria Staffing
Authorized Full-Time Positions
General Government: 8
Administrative Services: 4
Community Development: 10
Public Works Department: 14
Parks, Recreation, and Community Services: 7
43 FTE ÷ 13,264 Total Residents × 1,000 = 3.24 FTE per 1,000 residents
City Population FTE FTEs per 1000 residents
Carpinteria 13,264 43 3.24
Buellton 5,530 20 3.62
Solvang 5,600 28 5
Goleta 32,409 125 3.86
City of Carpinteria Staffing Compared
to Santa Barbara County Cities
Guadalupe, Lompoc, Santa Barbara, and Santa Maria were not included in the chart above as those cities are full service cities, meaning that they either have their own police and/or fire departments.
G
eneralFund(includingMeasureX)Overview
PropertyTaxesSalesTax
TransientOccupancyTaxOtherRevenues
OperatingPublicSafety
ProfessionalServicesPersonnel
Subsidies
Revenues
Total$18,762,400
5.8M
4.1M
2.6M 6.2M
Expenditures
Total$19,284,300
7M
1.7M
6M
2.8M
1.9M
$ Millions
FY 2023
Actual
FY 2024
Actual
FY 2025
Actual
FY 2026
Adopted
FY 2027
Adopted
Sales Tax- Bradley
Burns 1.00%
$2.2 $2.2 $2.1 $2.2 $2.2
Transaction & Use Tax -
Measure X 1.25%
3.8 3.8 3.8 3.9 4.0
Property Tax 4.9 5.2 5.4 5.6 5.8
Transient Occupancy
Tax
3.5 3.2 3.7 4.0 4.1
Other Taxes 0.8 0.7 0.8 0.8 0.9
Charges for Services 0.2 0.4 0.7 0.8 0.6
Other Revenues 0.9 1.6 1.7 1.6 1.2
Transfers-In &
Subsidies
3.0 - - 0.2 -
Total General Fund
Revenues
$19.3 $17.1 $18.2 $19.1 $18.8
General Fund Revenue Summary
(including Measure X)
Property Tax
30.9%
TOT
21.8%
TUT
21.3%
Sales Tax
11.7% Other Taxes
4.8%
FY 2027 Adopted Revenue
Measure X
$ Millions
FY 2023
Actual
FY 2024
Actual
FY 2025
Actual
FY 2026
Adopted
FY 2027
Adopted
Salaries & Benefits $4.2 $4.5 $5.2 $5.9 $5.9
Professional Services
& Contracts
2.2 1.7 1.7 2.5 2.3
Public Safety 5.1 6.1 6.2 6.6 6.9
Other Operating
Expenses
0.7 0.8 0.8 1.0 1.1
Other Non-Operating
& Capital Expenses
0.3 0.3 0.5 0.3 0.3
Transfers Out &
Subsidies
5.5 4.2 6.6 2.3 2.8
Total General Fund
Expenditures
$18.0 $17.6 $21.0 $18.6 $19.3
General Fund Expenditure Summary
(including Measure X)
Public Safety
35.8%
Salaries & Benefits
30.6%
Transfers Out
& Subsidies
14.5%
Professional
Services &
Contracts
11.9%
Other Operating
Expenses
5.7%
FY 2027 Adopted Expenditures
What’s next?
Next Steps
5-Year Financial Plan
5-Year Capital Improvement Plan
Asset Management Plan
Pavement Management Plan
Union Negotiations
Sheriff Contract Negotiations
2-Year Budget & Strategic Plan
Attend a City Meeting
City Council held every second and fourth Monday of the month
Review the City Budget and Supporting Documents
Monthly Treasurer’s Report
Expenditure list (bi-monthly)
List of agreements executed by the City Manager
Monthly Finance Committee meetings
Independent annual audit
Available at carpinteriaca.gov/budget
How to Get Involved or Learn More
Measure I
Presented by Mayor Natalia Alarcon
What is Measure I?
Measure I is a proposed ¼ cent local transaction and use tax that will appear on the November 3, 2026 ballot.
If approved:
The sales tax rate would increase by 0.25%, from 9.00% to 9.25% The sales tax would not apply to groceries or prescriptions.
The City estimates that it would generate approximately $700,000 annually.
All revenue would be deposited into the City’s General Fund.
Revenue would be kept local.
The measure would remain in effect until ended by voters.
Example: A $100 taxable purchase would generate an additional $0.25 in local sales tax.
Carpinteria registered voters will decide whether Measure I is approved in the November 3, 2026 General Election.
Why is Measure I on the ballot?
The City continues to face financial pressures associated with:
More than $24 million in deferred street and road maintenance.
A structural deficit, where expenditures are outpacing revenues.
Approximately $2.4 million in subsidies supporting assessment districts, library services, senior services, and other community programs.
Increasing costs associated with law enforcement, construction, inflation, and other essential services.
Revenues Total Expenditures Available Fund Balance Committed Reserves (per Policy) Fiscal Years
i
n
m
i
l
l
i
o
n
s
21/22 22/23 23/24 24/25 25/26 26/27
0 5
10 15
20 25
$15.9 $16.3
$17.1
$17.8 $17.7
$18.8
$15.4
$12.6
$17.6
$22.7
$18.6
$19.3
$8.3 $8.7 $7.7
$4.7
$5.1
$4.0
$6.0 $6.8 $7.2
$7.5
$7.8
$8.7
What would Measure I support?
Measure I is a general tax. If approved, revenue would be deposited into the City’s General Fund and could be used for any lawful City purpose. The ballot language identifies examples of City services that could be supported by Measure I revenue, including:
Strees and
Roads
Street and pothole repairs
Sidewalk maintenance
Maintaining emergency
routes
Sheriff services and
response
Property crime and theft
prevention efforts
Emergency 911 response
Wildfire risk reduction
Storm drain maintenance
Flood and disaster
preparedness
Emergency response
Safe and clean public areas
and parks
Library services
Senior and youth programs
Addressing homelessness
Public
Safety
Emergency
Preparedness
Parks and
Community Services
Important: Measure I revenue would not be restricted or guaranteed to any specific service or spending category.
Funding decisions would be made through the City’s public budget process and approved by the City Council.
Measure I Language and Next Steps
‘Carpinteria Public Safety, Roads, City Services Measure. To help repair streets/potholes/sidewalks; better prepare for/respond to wildfires/floods, other emergencies/natural disasters; keep public areas/parks safe/clean; help maintain sheriff's service/response, property crime/theft prevention efforts; address homelessness; support youth/senior programs; other general government purposes; shall City of Carpinteria's measure be adopted levying a ¼¢ sales tax, providing approximately $700,000 annually until ended by voters, requiring audits, spending disclosure, funds locally controlled?'
Election Day: November 3, 2026
More Information: carpinteriaca.gov/measurei
Email: [email protected]
Question & Answer Portion
State of the CityAddress
August 31, 2026