Agenda packet, second session — Santa Monica City Council, May 24, 2023 (part 1 of 2)

City of Santa Monica
City Council Meeting
AGENDA

GLEAM DAVIS
MAYOR

PHIL BROCK LANA NEGRETE

COUNCILMEMBER MAYOR PRO TEM

CHRISTINE PARRA CAROLINE TOROSIS

COUNCILMEMBER COUNCILMEMBER

JESSE ZWICK OSCAR DE LA TORRE

COUNCILMEMBER COUNCILMEMBER

DAVID WHITE

CITY MANAGER

DOUGLAS SLOAN

CITY ATTORNEY

DENISE ANDERSON-WARREN

CITY CLERK

STANDARDS OF BEHAVIOR THAT PROMOTE CIVILITY AT ALL PUBLIC MEETINGS:
• Treat everyone courteously; • Give open-minded consideration to all viewpoints; • Listen to others respectfully • Focus on the issues and avoid personalizing debate; • Exercise self-control • Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions
Regular meetings are broadcast live on CityTV cable channel 16 and on the internet at santamonica.gov. Cable television re-broadcasts air on Thursday and Saturday at 11:30 AM. The agenda will air on CityTV on Saturday and Sunday at 11:00 AM and 6:00 PM, and on Monday and Tuesday at 12:30 PM and 6:00 PM.

City of Santa Monica Generated: 5/24/2023 3:28 PM Page 2

RULES OF ORDER FOR THE CONDUCT OF CITY COUNCIL MEETINGS (Resolution No.11494(CCS))

WAYS TO PROVIDE PUBLIC COMMENT
If you are interested in providing public comment at a City Council meeting, there are several ways to participate:
(1) Written public comment. In lieu of oral public comment, the public is strongly encouraged to submit written public comment on agenda items via email to [email protected]. Written public comment submitted before 12:00 pm on the day of the meeting will be available for online viewing. Please note the agenda item number in the subject line of your written comments. (2) Oral public comment. Persons wishing to address the City Council regarding items on the agenda must be present and submit their name and address (optional) to the City Clerk before the public comment section is opened for that item or before the public hearing is opened where one is required by law. Register to speak at the Speaker Kiosk prior to the meeting. Remarks from the public are limited to a total of 6 minutes per City Council meeting, with a maximum of 2 minutes and a minimum of one minute per item. Except for the author of the request, public comment on 15-items are limited to 1 minute. Except on Public Input, speakers appearing at the meeting in person, may donate 2 minutes to another person present in-person at the meeting, who may speak for a total of 4 minutes on that item.

Both the donor of time and the designated speaker must register at the Speaker Kiosk in person together.

Oral public comment from any one individual is limited to a total of 6 minutes per City Council meeting, with a maximum of 2 minutes per agenda item; under some circumstances, Council may change the maximum to 1 minute per agenda item.

ORDER OF BUSINESS (may not be changed except by majority vote of the City Council.)

1. General Public Input
(members of the public may address the City Council
only on items not on the agenda, but within the
subject matter jurisdiction of the City).

2. Public Comment for Closed Session, Special
Agenda, and Consent Calendar Items Only
(Commendations and Proclamations presented).

3. Closed Session.

4. Special Agenda Items (City Manager’s Report,
Presentations, etc.).

5. Consent Calendar (All items considered in one
motion unless removed by a City Councilmember for
discussion. Public comment shall be heard prior
to City Council discussion).

6. Public Comment on remaining Agenda Items

7. Study Session.

8. Continued Items.

9. Administrative Proceedings.

10. Ordinances:
• 1
st Reading
• 2
nd Reading

11. Staff Administrative Item.

12. Public Hearings.

13. Reports of Boards and Commissions.

14. Resolutions.

15. Written Communications (other than
Reports of Commission and Officers).

16. Councilmember Discussion Items.

Agendas and reports are accessible on the City's webpage at smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con Esterlina Lugo.

City of Santa Monica Generated: 5/24/2023 3:28 PM Page 3

AGENDAS

CITY OF SANTA MONICA

ADJOURNED REGULAR MEETING

CITY HALL COUNCIL CHAMBERS
1685 MAIN STREET, ROOM 250,
WEDNESDAY, MAY 24, 2023
MEETING BEGINS AT 7:00 PM
HOW TO PROVIDE WRITTEN PUBLIC COMMENT:

Written public comment can be submitted via email to [email protected].

Written comments received prior to 12:00 pm on the day of the meeting will be available online. Please note the agenda item number in the subject line of your written comments.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

1. PUBLIC INPUT (NON-AGENDA ITEMS)
. All Public Comment was heard at the 5/23/23 meeting.

2. PUBLIC INPUT (AGENDA ITEMS UNDER CLOSED SESSION, SPECIAL AGENDA

ITEMS, CONSENT CALENDAR ONLY)

3. CLOSED SESSIONS
No items

4. SPECIAL AGENDA ITEMS
No items

5. CONSENT CALENDAR
(All items will be considered and approved in one motion unless removed by a Councilmember for discussion. In accordance with Charter section 615, the adoption of all ordinances and resolutions shall be by reading of title only unless a Councilmember present dissents.)
No items

6. PUBLIC INPUT ON REMAINING AGENDA ITEMS
City of Santa Monica Generated: 5/24/2023 3:28 PM Page 4 . All Public Comment on Item 7.A. Budget Study Session was heard at the 5/23/23 meeting.

7. STUDY SESSION

7.A. Five-Year Financial Forecast Update, FY 2023-25 Proposed Biennial Budget, and FY 2023-24 Proposed Capital Improvement Program Budget Recommended Action
Staff recommends that the City Council:

1. Receive the FY 2023-24 through FY 2027-28 May Five-Year Financial Forecast Update;

2. Review and provide direction to staff on the FY 2023-25 Proposed Biennial Budget, including the FY 2023-24 Proposed Exception-Based Capital Improvement Program (CIP) Budget;

3. Review and provide direction to staff on proposed fee changes;

4. Review and comment on the Cultural/Art Organizational Support Program (OSP) funding recommendations for the FY2023-25 funding cycle; and

5. Direct staff to proceed with setting the FY 2023-25 Budget Adoption public hearing on June 27, 2023.

ADJOURNMENT
Agendas and reports are accessible on the City's webpage at www.smgov.net/council/agendas. They are also available at the City Clerk's Office and in alternate formats upon request. For a free email subscription to the City Council Agendas, please contact the City Clerk’s Office at (310) 458-8211 or [email protected].

Members of the public unable to attend a meeting but wishing to comment on an item(s) listed on the agenda may submit written comments prior to the meeting by meeting by mailing them to: City Clerk, 1685 Main Street, Santa Monica, CA 90401 or to [email protected]. Written comments received from the public by 2 PM on the day of the City Council meeting will be distributed to the City Council prior to the meeting and posted online.

City Hall and the Council Chamber are wheelchair accessible. If you require any special disability related accommodations to either attend or provide public testimony at a Council meeting (i.e. sign language interpreting, access to an amplified sound system, remote option, etc.), please contact the City Clerk’s Office at (310) 458-8211 or TDD: (310) 917- 6626 or via email at [email protected] at least 72 hours prior to the scheduled meeting. Best efforts shall be made to accommodate requests received after the 72-hour deadline. In the case of special meetings, requests should be submitted as early as possible, but no later than noon the day of the special Council meeting.

Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y pida hablar con Esterlina Lugo.

Santa Monica Blue Bus Lines #2, #3, #5, #9 and the EXPO Line serve City Hall. Parking is available on Main Street, on Olympic Drive, and in the Civic Center Parking Structure (validation free).

City Council
Report
City Council Meeting: May 24, 2023
Agenda Item: 7.A
1 of 25
To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department Subject: Five-Year Financial Forecast Update, FY 2023-25 Proposed Biennial Budget, and FY 2023-24 Proposed Capital Improvement Program Budget Recommended Action
Staff recommends that the City Council:

1. Receive the FY 2023-24 through FY 2027-28 May Five-Year Financial Forecast Update;

2. Review and provide direction to staff on the FY 2023-25 Proposed Biennial Budget, including the FY 2023-24 Proposed Exception-Based Capital Improvement Program (CIP) Budget;

3. Review and provide direction to staff on proposed fee changes;

4. Review and comment on the Cultural/Art Organizational Support Program (OSP) funding recommendations for the FY2023-25 funding cycle; and

5. Direct staff to proceed with setting the FY 2023-25 Budget Adoption public hearing on June 27, 2023.

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Executive Summary
The City of Santa Monica’s Fiscal Year 2023-2025 Proposed Biennial Budget builds on the work done in recent years to help our community respond to and recover from the COVID-19 emergency as well as make strategic investments to advance priority areas Council identified at its workshop on March 11, 2023. These priorities are:
• Addressing Homelessness
• Clean and Safe Santa Monica
• Cultivate Economic Recovery and Expand Community and Cultural Offerings • Racial Justice, Equity, and Social Diversity
• Sustainable and Connected Community
This report provides a brief, high level summary to accompany the City of Santa Monica’s FY 2023-25 Proposed Biennial Budget and Capital Improvement Program Budget for FY 2023-24 (Attachment A).

The Citywide Proposed Biennial Budget is $740.9 million in FY 2023-24 and $746.4 million in FY 2024-25, net of reimbursements and transfers. The Budget provides a plan, built upon community-driven priorities, to continue to rebuild, restore and reenergize our community. Looking forward, the City will continue to face and manage challenges, ranging from the economic uncertainty and disruption coming from geopolitical unrest, consumer behavior changes, and trailing impacts of the pandemic.

Despite these challenges, there has been closure on the unprecedented financial blows that the City has weathered over the past three years from the pandemic and the resolution of significant legal liabilities.

The FY 2023-25 Proposed Biennial Budget is posted on the City’s website at santamonica.gov. The document includes:
❖ The City Manager’s budget message, which provides an overview of the investments made to further Council-adopted priorities, using both new and reallocated funding sources, in both English and Spanish ❖ An overview of sources and uses of funds, including a description of employee

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compensation costs
❖ A section describing projected revenue performance in FY 2022-23, FY 2023-24 and FY 2024-25
❖ An overview of fund balances for the General Fund and all other funds ❖ Five-year overviews (spanning FY 2020-21 through FY 2024-25) of Citywide expenditures and revenues by fund and by department
❖ Descriptions of each Department and its mission, individual Division functions, and budget and position allocations by Division, Department, and Fund ❖ A listing of proposed enhancements that have been incorporated in the Budget ❖ The FY 2023-24 Capital Improvement Program (CIP) Budget Addendum, showing individual projects in each fund
❖ The City’s financial policies, which are adopted by the Council along with the budget
❖ A separate line item detail is posted online at https://finance.smgov.net/budgetsreports/annual# In preparing this two-year budget, City staff began with a baseline “maintenance of effort” budget that continues current services addressing Council priorities, basic services, and good governance. To this baseline budget, staff added enhancements that further address Council priorities and strengthen governance. Enhancements are funded using new revenue sources coming from voter approved measures, public and private partnerships, rate adjustments, reallocated funding, and successful grant applications. The Budget is balanced in FY 2023-24 and uses working capital funds, already set aside in the General Fund balance, in FY 2024-25 to maintain service levels while General Fund revenues continue to recover in the short term.

The Proposed Budget is prepared alongside five-year forecasts for all funds, the results of which are included in this report, to ensure the long-term fiscal viability of proposed programs and services. The staff report also includes a preview of proposed new or adjusted fees and the Cultural Affair’s Division’s Organizational Support Program (OSP)

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grant recipient recommendations for Council’s input. The items will be brought back to Council for adoption along with the Adopted Budget on June 27, 2023.

Background
Since the adoption of the FY 2020-21 Budget, which reflected dramatically restructured operations that focused City operations on the delivery of essential services during the COVID-19 pandemic and the ensuing swift and severe economic crisis, each successive budget has included a small amount of service restoration and investments to address critical needs in the areas of public safety, homelessness, and economic recovery. The FY 2022-23 Adopted Budget also addressed cost of living adjustments for staff after years of no pay increases or pay cuts for some employees. The increases have been funded using incremental revenue growth, federal stimulus funds, and onetime reallocations of funds. Increases to each year’s budget have been balanced with an equally important need to rebuild General Fund reserve levels that were drawn down to address the severe revenue shortfalls during the pandemic and to make large settlement payments.

On March 11, 2023, to prepare for the FY 2023-25 Proposed Biennial Budget, Council:
• Reviewed and commented on the FY 2023-24 through FY 2027-28 Five-Year Financial Forecast,
• Set the organizational priorities that will guide the development and implementation of the FY 2023-2025 Biennial Budget,
• Provided direction and preliminary approval for proposed FY 2023-25 budget items, including the allocation of Measure CS funds, the suspension of the unfunded pension liability paydown policy to allow the reallocation of $2.5 million in the General Fund to cover service restoration in key areas, and • Provided approval of the organizational realignment of the Community Service Department to align and focus the City’s work on Council priorities and implementation of newly adopted tax measures, including Measure GS.

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Discussion
General Fund Five-Year Financial Forecast Update
The May 2023 General Fund Five-Year Financial Forecast Update incorporates the FY 2023-25 Proposed Biennial Budget revenues and expenditures. The Five-Year Financial Forecast shows the balance of General Fund revenues less expenditures on an annual basis for the next five fiscal years. The Forecast assumptions and results are the same as those presented in the March 11, 2023 Council Workshop (Attachment B).

As shown, annual revenues would slightly exceed expenditures (in the range of $100,000-$200,000) for the next three years. This positive balance reflects the use of working capital reserves beginning in FY 2024-25. Future projected negative balances of $0.6 and $1.5 million, respectively, in FY 2026-27 and FY 2027-28 represent 0.1% and 0.3% of revenues for those two years. These negative balances are at a level that can be managed over the next three years.

Revenue Projections: Over the next five years, revenues are anticipated to increase by an average of 3.5% a year compared to the 30% increase that occurred over the two years since FY 2020-21. During the Biennial Budget period, revenues are anticipated to grow at a rate of 3.2% and 3.0%, respectively, reflecting a slowing in economic growth. It is anticipated that revenues will not fully recover until FY 2027-28. While the

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City has already seen a loss of nearly $170 million since 2020, revenues will lag behind normal growth by nearly $80 million over the next five years, for a total loss of approximately $250 million over 8 years, as shown in the chart below.

Expenditure Projections: The Forecast includes negotiated and projected cost of living increases, as well as projected pension rates informed by recent portfolio earnings trends, and projected healthcare rates. Also included is the programming of Measure CS funds, new digital kiosk revenues, and the reallocation of funds to new uses.1 Use of Working Capital Reserves: The General Fund will require the use of working capital reserves to fill budget deficits in years FY 2024-27. While the use of reserves to cover ongoing expenditures is not a sustainable financial practice, the circumstances 1 Not included in General Fund projected revenues or expenditures are Measure GS (2022) funds and Measure HMP (2022) funds. Measure GS funds will be received and programmed in the Housing Trust Fund, not the General Fund.

This funding source has not yet been programmed in the Housing Trust Fund as it is difficult to project because it is contingent on the sale of high value properties. Additionally, there is currently a reverse validation action that seeks to invalidate Measure GS. Because there is no pending request to stay the implementation of the tax, the tax will go into effect on March 1, 2023. The lawsuit may take several months to resolve; as a result, any tax collected and spent by the City would be considered a contingent liability until resolution of the lawsuit, including any appeals.

Measure HMP imposes an additional tax on cannabis retailers and other licensed cannabis businesses, further work is required to amend the amend the Municipal Code to allow for an increase of cannabis-related retail establishments and revenues are not anticipated during the upcoming biennial period.

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creating the deficits are in the short term only, including temporary hotel closures to complete renovations, and contractual labor obligations.

Contingency Reserves Gradually Restored: In FY 2023-24 the General Fund budget will be backed by a Rainy Day fund totaling 13% of ongoing expenditures. The Forecast assumes that the City will continue to rebuild its Rainy Day fund, reaching 15% of ongoing expenditures in FY 2026-27. Strong reserves protect our ability to provide essential services and retain jobs during emergencies and economic fluctuations. They are also a signal of a City’s financial health and critical to maintaining the City’s AAA bond rating.

Capital Improvement Program: Prior to the pandemic, the General Fund allocated $21 million a year to its Capital Improvement Program (CIP). This amount was reduced to $7.3 million in FY 2020-21. The Forecast shows funding restored to $21 million in FY 2024-25. Of the $15 million amount set aside for capital projects in FY 2023-24, over three-quarters of the program is budgeted for required ongoing maintenance, vehicle and technology replacement, safety-related repairs and debt service, leaving less than one-quarter of the funding available for community amenities and enhanced services.

The reduction of the CIP over the last four years has resulted in deferred infrastructure, technology and vehicle maintenance or replacement. In addition, over $362 million in projects remain unfunded. More information on General Fund funded and unfunded projects is included in the Capital Improvement Section later in this report and in the CIP Addendum included in the Proposed FY 2023-25 Biennial Budget.

Other Funds Financial Forecast Update
Among the larger funds contributing to the City’s operations, the Water, Wastewater, Big Blue Bus (BBB), Airport and Cemetery Funds have sufficient revenue to cover operational and capital needs during the biennial period. If new rates are approved by Council on June13, 2023, the Resource Recovery and Recycling (RRR) Fund will remain self-sufficient during the biennial period and enhanced services can be offered.

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The Pier and Beach Recreation Funds are projected to require subsidies and advances during the biennial budget period, totaling approximately $8.7 million. Continued revenue constraints, including the partial closure of the Pier Deck parking, and pending plans to adjust beach parking rates, are significantly contributing to the situation.

The Community Broadband (CBB) Fund, which supports CityNet operations, will be merged into the General Fund, allowing for greater efficiencies from a more flexible sharing of resources.

FY 2023-25 Proposed Biennial Budget
The Proposed Biennial Budget for the City of Santa Monica totals $740.9 million in FY 2023-24 and $746.4 million in FY 2024-25, net of reimbursements and transfers. The Proposed Budgets for FY 2023-24 and FY 2024-25 represent year-over-year growth of

3.8% and 0.8%, respectively. The budget spans 30 funds and 15 departments. The General Fund, supported predominantly with tax revenues, provides the majority of municipal services, while enterprise funds such as Water, RRR, BBB and the Airport conduct their operations using rate- or fee-based revenues, and still “Other Funds” receive contributions from all funds to service items such as vehicle and technology needs or insurance needs, or conduct activities covered with grant or other nondiscretionary revenues. The moderated growth in the second year is primarily due to a decrease in programmed capital expenditures in the BBB Fund. Additional capital expenditures commencing in FY 2024-25 will be programmed as part of the FY 2024-26 Biennial Capital Improvement Program budget process.

The chart below shows the breakdown of the Citywide proposed budget for FY 2023-24, net of reimbursements and transfers, the first year of the biennial period. This budget includes both operating and capital expenditures.

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Citywide Budgeted Expenditures - by Fund Type - FY 2023-24 (in millions)
The amounts shown in the chart do not include payments for services between funds to avoid double-counting.

Among the large General Fund payments that do not appear in the $412.4 million amount, are contributions to Workers’ Compensation and Liability self-insurance funds, and transfers to the Fleet and Computer Equipment Replacement Fund.

The proposed General Fund budget (including reimbursements and transfers) is $436.9 million in FY 2023-24 and $458.6 million in FY 2024-25. The budgets represent yearover-year growth of 3.8% and 5.0%, respectively. The charts below show the sources and uses of the General Fund budget for the FY 2023-24 Proposed Budget. These charts, as well as charts showing the breakdown for FY 2024-25 are included in the Budget Overview section of the attached budget document.

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General Fund FY 2023-24 Proposed Budget

In the chart above, Internal Services includes the Offices of the City Manager, City Council and City Attorney, the Records & Election Services Department, and the Finance, Human Resources and Information Services

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Departments. The Office of the City Manager also includes the City’s 3-1-1 and Office of Emergency Management operations.

Changes Included in the FY 2023-25 Proposed Biennial Budget The FY 2023-25 Proposed Biennial Budget includes the most substantial restoration of ongoing services and introduction of enhanced services to date since the 2020 budget restructuring. This is due to a combination of a new voter-approved revenue source, continuing revenue growth, a reallocation of existing funds, new revenues from public and private partnerships, and staff’s ability to expand capacity for cost-covering programs.

As the City enters a period when revenue growth is slowing while factors that drive up expenditures continue to put pressure on available resources, it is imperative to be purposeful and strategic in how funds are spent. Budget enhancements for the most part address the community priorities adopted by Council on March 11, 2023:
- Addressing Homelessness
- Clean & Safe Santa Monica
- Cultivate Economic Recovery & Expand Community & Cultural Offerings - Racial Justice, Equity & Social Diversity
- Sustainable & Connected Community
The following table lists the operating budget enhancements included in the Proposed Biennial Budget. This detail also appears in the Appendix section of the Proposed Biennial Budget.

Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) General Fund City Manager Restoration of ongoing funding for the Neighborhood Grant program
- $ 49
General Fund City Manager Resources to support Community Partnerships Program, including the
We Are Santa Monica Fund, the
digital kiosks, LA28 Olympics, film
and event permits, and other publicprivate partnership opportunities

1.0 Permanent
$ 412

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Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) General Fund Community Development Establishment of ongoing funding for security services program at the Pier
(Measure CS)
- $ 605
General Fund Community Development Restoration of key positions in planning and to enhance economic
recovery work

2.0 Permanent
$ 360
General Fund and
CDBG
Community Development Establishment of a Small Business Assistance and Tenant Improvement
Fund
- $ 150
General Fund Community Development Funding to enhance monitoring and enforcement of the City’s homesharing ordinance (Measure CS) - $ 130
General and All
Enterprise Funds
Finance Position to support payroll operations,
partially funded by enterprise funds

1.0 Permanent
$ 122
Risk Mgmt, Admin Finance Temporary employee hours to
support the Workers' Compensation
program, funded by reallocation of
funds

0.5 Temporary
$ -
General Fund, Misc.

Grants
Fire Dept Changes in the Fire Department to
strengthen Emergency Medical
Services (EMS) delivery. With the
completion of the CRU pilot program,
resources are reallocated to a new
EMS Battalion Chief/Homeless
Liaison, 3 new Captains serving in
the Emergency Incident Technician
role (offset by the deletion of 3
Firefighter positions), a part-time
Logistics position, a contracted case
manager for high users of 9-1-1, and
restoration of a longer Recruit
Academy program that increases the
ability to hire a more diverse
workforce. The enhancement is
partially funded by increased
inspection revenues. (ongoing and
one-time)
(1.0)
Permanent
/0.4
Temporary
$ 235

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Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) General Fund,
Housing Authority and
Housing Trust
Housing and Human
Services
Recreation and Arts
Positions are added to support the
new Housing and Human Services
Department as the organizational
point for homelessness services and
programs and to manage a larger
voucher program in the Housing
Authority. Positions include the
restoration of a Housing Manager,
Housing Authority Administrator, Staff
Assistant III, and a 0.5 Housing
Inspector, and a new Sr Housing
Specialist and Housing Specialist.

Creation of Recreation and Arts
Department to enhance leadership
around recreational partnership
opportunities. Positions added
include a Director, Administrative
Services Officer and an Executive
Administrative Assistant.

Funding (prorated costs):

General Fund
Housing Authority Fund
Housing Trust Fund

5.5 Permanent

3.0 Permanent

$ 30
$ 452
$ 556
General Fund Housing and Human
Services
Ongoing funding for partial restoration
of the direct service programs of
CREST, PAL, and VAP
- $ 168
General, All
Enterprise Funds
Housing and Human
Services
ADA Coordinator position to oversee
compliance program, partially funded
by enterprise funds

1.0 Permanent
$ 161
General Fund Housing and Human
Services
Expansion of homeless
multidisciplinary outreach teams
(Measure CS)
- $ 460
General Fund Housing and Human
Services
One-time funding for preparation of a
Homelessness Strategic Plan (HSP)
(Measure CS)
- $ 400
General Fund Housing and Human
Services
Redesign of the SAMOSHEL interim
housing program to accommodate
24/7 intakes (Measure CS) (ongoing
and one-time)
- $ 800
General Fund Human Resources Funding for services to administer selection/examination processes to
establish eligibility lists for employee
recruitment
- $ 260
General Fund Human Resources Funding for classification and compensation studies
- $ 140
General Fund Information Services Ongoing funding to maintain previously one-time funded
technology related items
- $ 56
General Fund Information Services Conversion of limited term position to permanent

1.0 Permanent
$ 180

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Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) General Fund Library & Public Works Restoration of additional service hours at the Main Library on
Saturdays, extending evening hours
at all open locations (M-TH) to 8 pm,
and opening the Main Library one
hour earlier (M-TH) at 10 am. This is
in addition to maintaining services
funded with one-time funds in the
prior budget cycle.

3.0 Permanent
/1.9
Temporary
$ 510
General Fund Non-Departmental Ongoing funding to support the School District’s Playground Club
program
- $ 500
General Fund Non-Departmental Funding for program to offer reduced RRR rates for qualifying low-income
households
- $ 150
General Fund Police Dept Funding to expand security services program at Downtown parking
structures (Measure CS)
- $ 280
General Fund Police Dept Realignment of administrative
positions in the Police Department
- $ (12)
General Fund Police Dept Increase Police Department staffing levels to expand Homeless Liaison
Program (HLP) and to augment
staffing in other areas of need such
as the Downtown Services Unit
(Measure CS)2

7.0 Permanent
$ 2,018
General Fund Public Works Ongoing funding for maintenance of the water features at Ken Genser and
Tongva Parks (Measure CS)
- $ 85
Water Fund Public Works Staffing changes to align positions with operational responsibilities in the
Water Division
- $ 12
General Fund Public Works Funding to increase tree pruning frequencies in high-traffic areas to
improve safety and aesthetics of our
public spaces (Measure CS)
- $ 120
General Fund and
Vehicle Mgmt.

Public Works Funding to establish specialized
public space maintenance team
focusing on waste and debris
generated by people experiencing
homelessness (Measure CS)

3.0 Permanent
$ 440
Wastewater Fund Public Works Staffing to help advance water conservation projects (Water
Resources Protection Specialist and
Sr Water Resources Protection
Specialist)

2.0 Permanent
$ 308
Resource Recovery &
Recycling
Public Works Staffing to enhance alley clearing,
illegal dumping and bulky item pickup
services, bike lane sweeping, comply
with State mandatory organics
recycling, and work towards Zero
Waste goal, funded by new rate
adjustments.

18.0 Permanent
/(2.9)
Temporary
$ 1,723
2 On a one-time basis until positions are filled, resources will support the Directed Action Response Team (DaRT) and be saved to invest in Police technology initiatives.

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Operating Budget Enhancements - ongoing unless indicated otherwise Staffing
Changes
Enhancement
Amount
Funding Source Department/s Description FTEs (in $1,000s) Airport Fund Public Works Funding to repair and replace aging equipment at airport hangars
- $ 40
Cemetery Fund Public Works Staffing changes to align position with operational responsibilities

0.4 Temporary
$ -
BBB, Water,
Wastewater and
Airport
Public Works and
Transportation
Funding to continue the Trades Intern
Program (TIP), which focuses on
supporting and empowering
vulnerable Santa Monica youth and
adults

5.0 Permanent
$ 373
General Fund Records & Election
Services
Restoration of passport services,
almost entirely funded by new
revenues

1.0 Permanent
$ 103
General Fund Records & Election
Services
Upgrade of Enterprise Content
Management system (ongoing and
one-time funds)
- $ 85
General Fund Recreation and Arts Funding for continuation of the Art of Recovery program
- $ 250
General Fund Recreation and Arts Re-introduction of cost covering Swim Center conference room rental

0.1 Temporary
$ 6
General Fund Recreation and Arts Positions to increase public access to Community Recreation facilities
funded by reallocation of funds.

8.8 Temporary
$ -
Beach Fund Recreation and Arts Restoration of cost covering position to address demand for event rentals
at the Annenberg Community Beach
House

0.5 Permanent
$ 80
General Fund Recreation and Arts Restoration of cost covering access hours at Memorial Park Gym and
Fitness Room and field rentals

1.5 Temporary
$ 81
General Fund Recreation and Arts Creation of a new cost covering Pickleball Program, with dedicated
staff to provide overall program
oversight

1.0 Permanent
/0.6
Temporary
$ 137
General Fund Recreation and Arts Expand cost covering classes at new SaMoHi aquatic facility

0.1 Temporary
$ 5
General Fund
Airport
RES, Library, CMO, PW,
CDD
Funding to support hybrid public
meetings - public comment
- $ 63
Big Blue Bus Transportation Staffing changes to support the BBB’s recruitment and training
efforts, maintenance needs and
security services to restore bus
service to pre-pandemic levels

4.0 Permanent
$ 1,575
Total 58.0
Permanent
/ 11.5
Temporary
$ 14,659
Budgeted Positions
As shown in the detail of enhancements, 69.5 new full-time equivalent positions are proposed to be added to the budget, including 8.5 positions previously added as limited

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term positions that are proposed to be extended or converted to permanent positions.

The Proposed Budget includes a total of 2,097.1 FTE positions, 1,341.8 in the General Fund. When compared to the number of positions in the FY 2019-20 Adopted Budget, the City is still 200.8 positions below its prior levels.

Capital Improvement Program (CIP) Budget
On June 28, 2022, Council adopted the first year and approved the second year of the FY 2022-24 Biennial CIP Budget. The FY 2023-25 Proposed Biennial Budget includes a CIP Budget Addendum outlining proposed revisions to the FY 2023-24 CIP Budget and budget plan amounts for FY 2024-25 through FY 2026-27. The longer-range plan is included as a tool to demonstrate total anticipated capital funding needs. However, project needs will be re-evaluated during each biennial CIP budget cycle to ensure that budgets are adjusted to fall within available funding limits and to best reflect updated City priorities.

The revised FY 2023-24 CIP Budget totals $104.1 million. This represents an increase of $8 million from the originally approved FY 2023-24 CIP Budget. The proposed changes are limited to priority needs that have arisen during the first year of the Biennial Budget and cannot be deferred until the next biennial budget process. Absent new General Fund resources, departments have identified alternative funding options such as grant resources, special revenue funds, Local Return Funds, and Community Development Block Grant resources to fund CIP projects. Total budget amounts represent major project support for Water projects identified in the Sustainable Waster Master Plan, Water and Wastewater Main Replacement projects, Big Blue Bus Fund resources to implement fleet electrification master planning and seismic building improvements and ongoing maintenance projects that protect and maintain City-owned infrastructure.

General Fund CIP Budget Changes
General Fund capital projects total $13.5 million (excluding the amount set aside for debt service) or 13% of the total proposed CIP Budget and approximately $0.5 million of this amount represents an increase for the Reed Park Improvements project and the

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internal services transfer in the Vehicle Replacement Program outlined in the CIP section of Attachment A.

Prior to the pandemic, the General Fund allocated $21 million a year to the CIP Budget.

This amount was reduced to $7.8 million in FY 2020-21 and has increased gradually since then. Without new funding sources, there is no capacity to restore the annual General Fund CIP Budget to $21 million until FY 2024-25 at the earliest. Current amounts allocated to the CIP are not enough to address deferred infrastructure and equipment maintenance, technology/computer and fleet replacement, and a renewed focus on community amenities that were put on hold during the pandemic. Funding for additional new projects is not available; unfunded projects are shown in the Unfunded CIP List.

Non-General Fund Budget Changes
Non-General Fund capital projects total $90.5 million or 87% of the total proposed CIP Budget. The total net increase from the previously approved CIP budget for NonGeneral Fund projects is approximately $7.5 million. All proposed budget increases can be fully supported by enterprise fund balances, grants, alternative funding or a special revenue source.

The FY 2023-24 CIP budget changes include $4.3 million from enterprise Big Blue Bus funding sources for projects necessary to implement the Administration Building seismic improvement project and augmentation of the 7th Street Fencing Upgrade project. The remaining significant Non-General Fund increases are from an appropriation of $1.25 million in Local Return revenues for the new Bus Terminal at PCH and Sunset Blvd and Parking Structure Study, $1.05 million in CDBG Funds for the 19th Street Open Space Project, Virginia Avenue Park Commercial Kitchen and Virginia Avenue Park Basketball Replacement project, and $0.7 million in Special Revenue Funds for the Marine Park Basketball Court Surface Reconstruction and Park Improvement Program projects.

These budget increases as well as smaller changes are outlined in the CIP Budget section of Attachment A.

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Unfunded CIP List
Projects that were eliminated or reduced to help close the City’s funding gap resulting from the pandemic or did not receive funding due to extremely limited resources are listed in the Unfunded Projects table and are tracked for consideration in future funding cycles. City staff will explore opportunities to leverage City funds with external funding.

At this time, a total of $362 million in projects remain unfunded and are tracked for consideration in future funding cycles. Over 93% ($337 million) of the unfunded list is comprised of requests for General Fund resources with the additional 7% ($25 million) comprised of infrastructure requests for Pier Fund resources. The list of unfunded projects includes a complete remodel/seismic retrofit of Parking Structure 1 and other parking structure upgrades, the Memorial Park Expansion project, Lincoln Blvd. (LiNC) improvements, City Hall North building system upgrades, Pier deck and railing upgrades, Fire station facilities, Gandara Park Restoration, the Public Landscape Division relocation and City Yards Modernization improvements along Michigan Ave. A complete list of unfunded projects is included in the CIP section of Attachment A.

Fiscal Policies
The City’s Fiscal Policies, included as an appendix in the Budget, promote transparency, accountability, and a common framework for managing financial resources. At the onset of the COVID-19 closures, the Council temporarily suspended or changed a number of policies to provide greater flexibility in the use of funds. Three years later, the broad disruption that continues to impact economies, along with a protracted recovery horizon, demands a reassessment of these policies. Staff has proposed the following amendments to the Fiscal Policies. Council adopts the Fiscal Policies along with the Adopted Budget.

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Shift from ten-year to five-year financial forecasts: Before the pandemic, the City had shifted to ten-year forecasting to provide a longer planning window when dealing with capital projects and changes in pension obligations. Due to the persistent uncertainty in many elements impacting economic conditions, from the impacts of remote work, inflation, labor shortages, changes in travel and shopping, and supply chain disruptions, staff is proposing a permanent reversion to five-year forecasts to mitigate the risk of budgeting using unsubstantiated revenue projections. Staff will continue to monitor extraordinary cost trends beyond the five-year forecast period.

Elimination of expenditure control budgeting: Expenditure control budgeting previously allowed General Fund departments to maintain one-third of their non-salary operating budget savings to be used at the department head’s discretion to fulfill the mission of the department. With extremely constrained budgets throughout the City and fund reserves at a low level, it is prudent and necessary to consider the best citywide use of any savings.

General Fund Operating Contingency (Rainy Day Fund): On May 5, 2020, Council authorized staff to lower the General Fund contingency reserve level from 15% of ongoing expenditures to 12.5% to help balance the budget while revenues experienced severe declines. Strong reserves protect our ability to provide essential services and retain jobs during emergencies and economic fluctuations. They are also a signal of a City’s financial health and critical to maintaining the City’s AAA bond rating. The fiscal policy reflects a gradual rebuilding of the Rainy Day Fund, with a minimum 13% reserve level for FY 2023-24, and 13.5% reserve level for FY 2024-25, reaching a 15% reserve level in time for the FY 2027-29 Biennial Budget.

City Fees, Fines and Rates
As part of the annual budget adoption process, staff presents master fee, fine, and parking resolutions to Council for approval. Per the City’s Fiscal Policies, a Citywide fee/cost of services study is conducted at least once every five years. The last study was presented to Council as part of the FY 2021-23 biennial budget. In the years

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between studies, most fees are administratively adjusted by a factor equal to the net change in City salaries and benefits costs for that fiscal year. The administrative adjustment is 4%. Also, staff has undertaken focused reviews of several program areas to propose new fees or revisions to existing fees. Proposed changes are discussed below and listed in Attachment C. The actual final proposed resolutions will be presented for adoption with the Proposed Budget on June 28, 2023.

Community Development
• Architectural Review Board – Administrative Design Approval (New Construction): A fee for new construction projects that are eligible for the streamlined staff-level review process pursuant to the zoning amendments to implement the City’s certified 6 th Cycle Housing Element.
• SB 9 Conformance Review: A fee for the staff-level review of housing development on single-unit dwelling parcels pursuant to SB 9, that requires cities to allow one additional residential unit onto parcels zoned for single-dwelling units by constructing two units on a single lot or the subdivision of one lot into two separate lots. • Carousel Building Rental Fees: Special event rental rates for the Carousel Building have not increased since 2014. In consultation with the Pier Corporation, the entity that handles private rental of the Carousel on behalf of the City, Staff recommends rate increases, which will continue to keep the Carousel as an affordable venue while remaining competitive with other similar venues surveyed. Special event rental of the building helps to offset City expenses for maintaining the Carousel as well as the Pier Corporation’s staff costs for managing bookings.

Recreation and Arts (formerly Community Services)
Staff recommends increases to the hourly rates charged for the Aquatics Program to align with the actual hourly rates paid to staff and ensure that the City recovers the cost for the services provided. In addition, the Beach House recommends the addition of new fees for contractor-instructed activities that are being offered.

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Department of Transportation
The Department of Transportation recommends the addition of ten new fees for the Parking and Mobility Divisions to ensure that the City recovers the costs to install and remove event-specific signage, decal stickers for the Beach Bike Path program, and meter pole removals and installations, as well as the revision of one fee description.

The fees are hourly rates based on the fully burdened cost of the position performing the specific service. The new fees will ensure that the City recovers the cost of services provided.

There are no proposed rate changes to transient and permit parking lots/structures at this time. Staff will include the following changes in the parking resolution to be approved during final budget adoption on June 27, 2023: 1) Extend the downtown discount validation program through June 30, 2024; 2) Increase preferential parking permit fees by 4%; 3) Establish a Pilot Beach Electric Vehicle Parking Permit for Beach Lot 5 South; 4) Establish a Pilot Electric Vehicle Parking Permit for Lots 7, 8, 9, and 11; and 5) Establish a parking rate for City spaces for the 1560 Lincoln Boulevard Structure.

Library
Staff recommends changing the conference or meeting room minimum rental requirement from 3 hours to 2 hours to provide the community with flexibility and provide consistency with rental rates across all locations. The hourly rental rate is unchanged.

Police
Staff recommends deleting the 30-day vehicle impound because it is no longer being charged.

Public Works
Staff recommends the creation of two EV User fees instead of one flat rate to reflect the lower electricity rates during off-peak winter months. Staff also recommends new fees for the Cemetery to establish a pricing list for the new cremation niches that are now available due to the Abandoned Graves Project and property sold back to the

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Cemetery. Staff also recommends adjusting several existing fees to ensure consistency with similar fees.

Urban Runoff In-Lieu Fee
SMMC Chapter 7.10 Urban Runoff Pollution Mitigation allows a building permit applicant for a new development or redevelopment project in the City to pay an Urban Runoff Reduction Fee in-lieu of on-site installation of improvements to mitigate runoff from the project site. The fee proceeds are used to construct improvements on City property that would achieve the same level of runoff mitigation. The municipal code allows for yearly increases to the fee based on actual costs of City projects, but the fee has not been updated since 2010. Staff recommends that the fee increases be phased in over the next five years to ultimately reach actual construction costs. The proposed fee rates are as follows: Year1 (FY 2023/24) $12.27/gal; Year2 (FY 2024/25) $16.93/gal; Year3 (FY 2025/26) $21.60/gal; Year4 (FY 2026-27) $26.26/gal; Year5 (FY 2027/28) $30.92/gal).

Records and Election Services
Staff recommends that Council consider establishing three new election fees. The initiative fee is at the rate allowed by the California Elections Code (Chapter 3, Article 1, Section 9202), although it does not achieve recovery for the cost of administering an initiative process. The statement fees are the rates that Los Angeles County charges the City to ensure that the City recovers the cost of the services provided during the election process.

Council may elect to subsidize these fees partially or fully:

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• Initiative Fee: The proposed fee amount is $200.00.
• Candidate Statement Fee: City Council and Rent Control Board: The proposed fee amount is $1,100.00.
• Candidate Statement Fee: College and School Board: The proposed fee amount is $1,200.00.

Organizational Support Program
The City’s Organizational Support Program (OSP), managed by the Cultural Affairs Division, provides multi-year grants to the City’s resident arts and heritage nonprofits.

OSP funding helps secure Santa Monicans’ access to world-class cultural opportunities by directly supporting organizations’ operational expenses. The OSP application process was re-opened this year for the first time since 2019. Proposals were solicited for the grant period FY2023-25. A request for applications was distributed widely in December 2022; the City received 27 eligible submittals. Applications were reviewed by a diverse jury of arts professionals, including regional experts in each of the artistic/cultural disciplines represented in the applicant pool. Cultural Affairs Division staff reviewed applications for eligibility only; staff did not score applications.

During the last OSP cycle, in 2019, some of the eligibility requirements were eased to allow more organizations to apply, which resulted in an increase of small and mid-size organizations who tend to serve more diverse constituencies. These new grantees received a smaller “starter grant” because of budget limitations. Those limitations are ongoing, and the budget is further strained due to three new applicants entering the program this cycle. OSP funding is intended to provide a stable level of support for grantees year over year; the goal is to provide funding amounts that do not fluctuate wildly. Due to an anticipated flat budget for the program, staff recommends that new applicants begin with “starter grants,” while those who were new in the last cycle receive a slight increase based on the panel scoring, which will step them up toward the more traditional funding levels. Staff is recommending level funding for long-term organizations. This approach balances the critical mandates of equity with the realities of larger organizations, which are also very much in need after three years of pandemic

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closures and restrictions. Together, the 21 cultural agencies recommended for this year’s grantee pool is more diverse than any in the history of the program.

The total funding level for FY2023-24 is $409,925, a 2% increase over 2019. Detailed information about the OSP, individual grant recommendations, and the 2022 Community Assessment which informed the grant process and staff’s recommendations, are detailed in the Organizational Support Program (OSP) Grants for Arts and Culture Nonprofits 2023-25 (Attachment D).

Next Steps
Council will convene a public hearing on June 27, 2023 to consider, receive public comment, make revisions to, and adopt the first year and approve the second year of the Biennial Budget, as well as to adopt the second year of the Capital Improvement Program Biennial Budget.

Members of the public may provide comments on the Proposed Budget by sending an email to [email protected] or by giving public testimony at the May 23, 2023 Council meeting. Public testimony is also welcome at the Budget Adoption hearing on June 27, 2023.

Environmental Review
The FY 2023-25 Proposed Budget is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The Proposed Budget is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” Therefore, it can be seen with certainty that actions would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.

Financial Impacts and Budget Actions
The Fiscal Year 2023-2025 Proposed Biennial Budget is:

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• Citywide Expenditures: $740.9 million in FY 2023-2024 and $746.4 million in FY 2024-2025, net of reimbursements and transfers
• Citywide FTEs: 2,097.1 (2,003.2 permanent and 93.9 temporary) • Citywide Revenues: $747.2 million in FY 2023-2024 and $782.0 million in FY 2024-2025, net of reimbursements and transfers
Staff will integrate comments from the Study Session in the preparation of the budget that will come before the Council for adoption on June 27, 2023. At this meeting, staff will recommend adoption of the first year and approval of the second year of the FY 2023-25 Proposed Biennial Budget, as well as the adoption of the second year of the Capital Improvement Program Biennial Budget.

Prepared By: Esterlina Lugo, Deputy City Clerk
Approved Forwarded to Council
Attachments:

A. Attachment A - FY 2023-25 Proposed Biennial Budget
B. Attachment B - March 11 Council Workshop (Web Link)
C. Attachment C - Revisions to Fee Schedules FY 23-24 FINAL D. Attachment D - OSP 2023-25
E. Attachment D - OSP 2023 Community Assessment Report FINAL F. Written Comments

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Proposed
Biennial Budget
FY 2023-25

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) ii

CITY COUNCIL
Gleam Davis, Mayor
Lana Negrete, Mayor Pro-Tempore
Phil Brock, Councilmember
Oscar de la Torre, Councilmember
Christine Parra, Councilmember
Caroline Torosis, Councilmember
Jesse Zwick, Councilmember

EXECUTIVE MANAGEMENT
David White, City Manager
Susan Cline, Assistant City Manager
Anuj Gupta, Deputy City Manager

BUDGET PREPARATION

FINANCE STAFF
Gigi Decavalles-Hughes, Director of Finance
David Carr, Assistant City Treasurer
Oscar Santiago, Budget Manager
Jennifer Young, Principal Budget Analyst
Lori Koh, Senior Budget Analyst
Jonathan Tang, Senior Budget Analyst
Laura Perez, Executive Administrative Assistant

CAPITAL IMPROVEMENT PROGRAM STAFF
Rick Valte, Director of Public Works
Sergio Ramirez, Administrative Services Officer
Heidi Duran, Principal Administrative Analyst
Cover Photo Credit: Sean Paul Franget
FY 2023-25 PROPOSED BIENNIAL BUDGET

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) iii
FY 2023-25 PROPOSED BIENNIAL BUDGET

TABLE OF CONTENTS
City Manager’s Message1
En Español 15
Santa Monica at a Glance 30
Budget Overview 35
Overall Economic Conditions 35
Citywide Budget Overview 38
Major General Fund Tax Base Projections 46
Fund Balances 49
Classification of Funds 49
Fund Balance Projections 53
Fund Balance Projections (FY 2023-24) 54
Fund Balance Projections (FY 2024-25) 56
Revenues 58
Summary by Category and Fund (FY 2023-24) 58
Summary by Category and Fund (FY 2024-25) 59
Five-Year Revenue Summary 60
Overview 66
Revenue Analysis, General Fund 68
Revenue Analysis, Other Funds 77
Expenditures 92
Expenditure Summary by Fund (FY 2023-24) 92
Expenditure Summary by Fund (FY 2024-25) 93
Five-Year Expenditure Summary 94
Departmental Summaries 102
City Council 102
City Manager 104
City Attorney 106
Records and Election Services (City Clerk) 109
Community Development 112
Finance 116
Fire 119
Housing and Human Services 122
Human Resources 125
Information Services 128
Library 130
Police 133

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) iv
Public Works 137
Recreation and Arts 142
Department of Transportation 145
Non-Departmental 151
Personnel and Staffing 154
Organizational Chart 154
Summary of Personnel by Fund 155
Personnel by Department and Division 160
Capital Improvement Program 196
Addendum to FY 2022-24 CIP Budget 196
FY 2023-24 Budget by Fund 213
FY 2023-24 Unfunded Projects 217
Appendix 219
Targeted Budget Enhancements 219
Budget Calendar 222
Fiscal Policies 223
Debt Financing Summary 244
Summary of Long-term Indebtedness 245
Debt Service Schedule 246
Bond Ratings 247
Glossary 248
Acronyms 260
GFOA Award 263
FY 2023-25 PROPOSED BIENNIAL BUDGET

TABLE OF CONTENTS

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) FY 2023-25 PROPOSED BIENNIAL BUDGET
CITY MANAGER’S MESSAGE

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 1 FY 2023-25 PROPOSED BIENNIAL BUDGET
CITY MANAGER’S MESSAGE
It is my pleasure to present the FY 2023-25 Proposed Biennial Budget for the City of Santa Monica.

The FY 2023-25 Proposed Biennial Budget (Budget) is prepared within the context of our emergence from a period of significant restructuring due to the COVID-19 pandemic while we also have been working to address unprecedented liabilities. Despite these challenges, the City is recovering and rebuilding, as evidenced by the significant new investments throughout our community. In addition, by cultivating new revenue streams through partnership initiatives and voter support for new tax measures, this Budget has the capacity to allocate resources to address City Council and community priorities -- public safety, programs and services to address homelessness, and vital community services for youth, families, and seniors – to ensure the community continues to move forward.

These investments are only part of the story. Santa Monica is a vibrant community and will continue to thrive by looking to the future and advancing projects such as planning for the future of Santa Monica Airport, expanding cultural offerings, centering our work on sustainability, and striving for a community where everyone in Santa Monica has an opportunity to thrive.

The Budget sets forth the City’s management and spending plan for the two years spanning July 1, 2023 through June 30, 2025.

FY 2023-25 is the first biennial budget period for the post-COVID-19 emergency period. This Budget sets forth a plan to rebuild and enhance services against a backdrop of continued economic uncertainty driven by labor shortages, supply chain disruptions, inflation, and global conflicts at the national and international levels, in addition to significant liabilities and mounting deferred maintenance at the local level. To help ensure this Budget focuses the City’s resources where they are most needed, the City Council held a Council Workshop on March 11, 2023, to determine its priorities and provide direction on key budget items. The Budget reflects the outcomes of that Workshop, including restoring key City services and making investments in five priority areas:
• Addressing Homelessness
• Clean & Safe Santa Monica
• Cultivate Economic Recovery & Expand Community & Cultural Offerings • Racial Justice, Equity & Social Diversity
• Sustainable & Connected Community
These priorities continue the necessary work of helping our community recover from the COVID-19 pandemic and its economic and social impacts, but also focuses work on ensuring the long-term resilience and equity of Santa Monica.

The City’s General Fund revenue streams are anticipated to reach their pre-pandemic trajectory in five years.

In the meantime, lower revenue levels are constraining our ability to support a full restoration of services to pre-pandemic levels. Trends in global travel, retail shopping and hybrid and remote work mean Santa Monica must adapt its local economy for the future. The City has taken key steps to adapt zoning and laws to help with

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 2 FY 2023-25 PROPOSED BIENNIAL BUDGET
CITY MANAGER’S MESSAGE
this transition as local businesses make key investments in hotels, hospitals, and housing that will make Santa Monica’s economy resilient in the long-term. The Budget also reflects new revenue sources and partnership opportunities that strengthen Santa Monica.
• Measure CS, adopted in 2022, increases the City’s Transient Occupancy Tax (Hotel Tax) by one percentage point for hotel stays and by three percentage points for homeshare stays. It is anticipated that this tax will generate approximately $5.0 million annually during the biennial period. While this is a general revenue tax, meaning that it is not restricted as to its use, community polling done in anticipation of Council approving the measure for the ballot showed an urgent need for new funds to address the impacts of homelessness and to enhance public safety. The measure itself, which received 73% of the vote, noted the intent for these funds to be spent to address homelessness, improve 911 emergency response times and neighborhood police protection, and improvements to the safety and cleanliness of our public spaces. • Measure GS, adopted in 2022, is a citizen’s initiative ballot measure that enacts a third tier Documentary Transfer Tax of an additional 5% for property sales of $8 million and over, with revenue restricted to fund homelessness prevention, affordable housing projects, and schools. It is anticipated that this measure could generate approximately $50 million annually. The volatile nature of this revenue source, based on sales of very high value properties, and its administration and programming, requires a longer horizon for the programming of these funds. However, planning and organizational adjustments can begin as early as FY 2023-24 for what will likely be a multi-year Measure GS implementation strategy. • Voters also approved in 2022 Measure HMP, which imposes an additional tax on cannabis retailers and other licensed cannabis businesses. Further work is required to amend the Municipal Code to allow for an increase of cannabis-related retail establishments and revenues are not anticipated during the upcoming biennial period.
• The City’s work with private, public and non-profit partners and granting agencies is further contributing to important investments in our community and providing a more diversified approach to leveraging resources during a period of disruption in our traditional revenue streams. • The City recently entered into an agreement with Big Outdoor to install digital wayfinding kiosks in commercial areas that will provide a way for our small businesses to connect with potential customers and will generate additional revenue for the City, including an annual Diversity, Equity and Inclusion (DEI) fund.
• The City is continuing its partnership with the Los Angeles County Department of Mental Health (DMH) to implement a pilot program to launch a Therapeutic Transport Van staffed with DMH personnel in the City of Santa Monica. The Van will co-respond to incoming emergency calls related to, or presumed to involve, non-combative, medically stable individuals experiencing a mental or behavioral health crisis. The program also offers a supportive and expedited alternative to the transportation needs of acute mentally ill clients requiring additional care. The program is designed to relieve first responder resources to focus on other health and safety priorities. In addition, DMH Clinicians work alongside the City’s Homeless Liaison Program teams to locate, identify and provide outreach to people experiencing homelessness.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 3 • The City established the We Are Santa Monica Fund in 2021 to provide an avenue for private donations to support the Santa Monica community, including supporting economic recovery, racial equity and social diversity, healthy neighborhoods, and neighbors in need. The Fund is an important City partner to engage the community and local businesses to provide additional support in these areas.
• With the help of new grants received in the second half of FY 2022-23, work is progressing on the City Yards Modernization MicroGrid program and the Lincoln Neighborhood Corridor Streetscape (LiNC) projects.

Additional significant state and federal grant and development agreement funding received late in FY 2022- 23 will further the City’s work to support behavioral health needs of vulnerable residents and electrification of our buses. And staff continues to apply for grant funds to enhance our services in the areas of affordable housing, homeless services, public safety, parks, libraries and sustainability.

As we continue on our road to recovery, we will build on our use of metrics to manage our work, ensuring that the programs we provide are effectively and efficiently addressing our priorities.

FISCAL CONTEXT
The overall proposed budget for the City of Santa Monica is $740.9 million in FY 2023-24 and $746.4 million in FY 2024-25. This reflects the operating and capital activities of 30 funds across 15 departments and approximately 2,097 permanent and temporary full-time equivalent positions.

The largest component of the budget is in the General Fund, which is funded predominantly with tax revenues and provides services shared equally by all community members and visitors. The General Fund budget is $436.9 million in FY 2023-24 and $458.6 million in FY 2024-25.

The Citywide budget also includes several enterprise and special revenue funds, funds that are for specific uses or based on use of resources by individuals.
• Among the larger funds contributing to the City’s operations, the Water, Wastewater, Big Blue Bus (BBB), Airport and Cemetery Funds have sufficient revenue to cover operational and capital needs during the biennial period. If new rates are approved by Council in June 2023, the Resource Recovery and Recycling (RRR) Fund will remain self-sufficient during the biennial period as well as enhance services offered. • The Pier and Beach Recreation Funds are projected to require subsidies and advances during the biennial budget period totaling approximately $8.7 million. Continued revenue constraints, including the partial closure of the Pier Deck parking, and pending plans to adjust beach parking rates, are significantly contributing to the situation.
• The Community Broadband (CBB) Fund, which supports CityNet operations, will be merged into the General Fund, allowing for greater efficiencies from a more flexible sharing of resources.

The City’s two-year budget approach means that FY 2023-24 represents the exception-based year for our capital improvement program (CIP) Biennial Budget. The CIP budget for FY 2023-24 is $104.1 million, with $13.5 million FY 2023-25 PROPOSED BIENNIAL BUDGET
CITY MANAGER’S MESSAGE

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 4 representing the General Fund portion. Prior to the pandemic, the General Fund allocated $21 million a year to its CIP. This amount was reduced to $7.8 million in FY 2020-21 and has increased gradually since then. Without new funding sources, there is no capacity to restore the annual General Fund CIP budget to $21 million until FY 2024-25 at the earliest. Current amounts allocated to the CIP are not enough to address deferred infrastructure and equipment maintenance, technology/computer and fleet replacement, and a renewed focus on community amenities that were put on hold during the pandemic, although some funds have been programmed to begin the Airport conversion planning process in FY 2023-24. At this time, a total of $362 million in projects remain unfunded and are tracked for consideration in future funding cycles. Over 93% ($337 million) of the unfunded list is comprised of requests for General Fund resources with the additional 7% ($25 million) comprised of infrastructure requests for Pier Fund resources.

FISCAL SUSTAINABILITY
The Budget is informed by, and informs, the Five-Year Financial Forecast. In order to include an ongoing program or service in the Budget, there must be an ability to fund this expense over the long-term using revenues, assigned or restricted reserves, or working capital reserves. The General Fund Forecast shows revenues only slightly exceeding expenditures (by approximately $100,000) on an annual basis during the Budget period. This positive balance reflects the use of working capital reserves beginning in FY 2024-25. Working capital will be needed beyond FY 2024-25, and even with the use of these reserves, staff currently projects negative balances of $0.6 and $1.5 million, respectively, in FY 2026-27 and FY 2027-28. These negative balances represent 0.1% and 0.3% of revenues for those two years and are at a level that can be managed over the next three years.

As of June 30, 2022, General Fund non-restricted reserves amounted to 70% of what they were as of June 30, 2019.1 Strong reserves are necessary to cushion the delivery of services from the impact of emergency expenditures, contingent liabilities, and economic uncertainty. Since 2020, demands on these reserves have been compounded by:
• Delivery of essential services during the COVID-19 Pandemic. • Payments of over $229.8 million in legal settlements over the past three years related to allegations of sexual abuse by a former employee.

Looking ahead, the City is in litigation over a request to transition to district elections. The case is currently waiting to be heard in the California Supreme Court and if the City loses the case, the financial impacts to the City will be high. Finally, the City has significant capital liabilities that must be addressed, including the seismic retrofit of Parking Structure 1 at a cost of at least $13 million. The City has taken many actions to strengthen our financial standing, and the FY 2023-24 General Fund budget is supported by reserves in a Rainy Day Fund that total 13% of ongoing expenditures, but the impacts of these financial liabilities limits the City’s ability to address much needed service and staffing restorations.
1 On April 25, 2023, Council approved settlements with claimants in the amount of $122.5 million to resolve all lawsuits against the city arising out of allegations of sexual abuse by former City employee Eric Uller. A portion of the settlement is covered using General Fund reserves. Adjusting for the reserves drawn down for this payment, nonrestricted reserves would be at 45% of their FY 2018-19 level.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 5 FISCAL POLICIES
The City’s Fiscal Policies, included as an appendix in the Budget, promote transparency, accountability, and a common framework for managing financial resources. At the onset of the COVID-19 closures, the Council temporarily suspended or changed a number of policies to provide greater flexibility in the use of funds. Three years later, the broad disruption that continues to impact economies, along with a protracted recovery horizon, demands a reassessment of these policies.

Paydown of the Unfunded Pension Liability: On April 11, 2023, Council authorized a suspension of the accelerated paydown of the City’s unfunded pension liability from FY 2022-23 until FY 2027-28, or later, to restore an array of community services and programs such as expanded hours at the Main Library, restoring Youth Program capacity, and restoring positions in Planning and Economic Development to further economic recovery activities, among other restorations. While paying down unfunded liabilities at an accelerated rate is a prudent fiscal management tool, mitigating future year interest costs, the City needs to weigh this long-term fiscal management tool against the current state of our community services. The prior policy was adopted in 2019, when the City’s programs were operating at full strength, reserves were strong, and the General Fund had the capacity to take on additional payments of $2.5 to $3.5 million a year beyond the annual required pension contribution. To date, the City has made additional paydowns of over $88 million under the umbrella of early paydown policies, making it a leader in this achievement among other members of CalPERS.

Shift from ten-year to five-year financial forecasts: Before the pandemic, the City had shifted to tenyear forecasting to provide a longer planning window when dealing with capital projects and changes in pension obligations. Due to the persistent uncertainty in many elements impacting economic conditions, from the impacts of remote work, inflation, labor shortages, changes in travel and shopping, and supply chain disruptions, staff is proposing a permanent reversion to five-year forecasts to mitigate the risk of budgeting using unsubstantiated revenue projections. Staff will continue to monitor extraordinary cost trends beyond the five-year forecast period.

COMMUNITY PRIORITIES AND INVESTMENTS
The FY 2023-25 Proposed Biennial Budget incorporates the direction provided by the City Council and community members at the March 11, 2023 Workshop, where Council adopted five priorities to act as the foundation of FY 2023-25 PROPOSED BIENNIAL BUDGET
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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 6 the Budget. Measures GS and CS are anticipated to generate significant resources to solve hypersensitive and challenging issues. Following Council direction, and in light of community needs and expectations, the Budget reflects the creation of two departments. The two departments will carry forward the Community Services Department’s work to be responsive to the social and economic challenges residents are facing, the need for community healing and recovery, and to provide services and programs that enrich lives and help people thrive:
• The Housing and Human Services Department would become the organization point for homelessness services and programs, which would enable the City to implement programs and services that result from Measures CS and GS, address the recommendations of the internal auditor’s Homelessness Study, and provide core focus and leadership on an array of housing, educational, and social services programs. This department would also administer investments to support vulnerable populations through the management of the Human Services Grants Program (HSGP). Minor changes would be made to existing job specifications to reflect the new department’s name, scope, and structure. A Housing Manager position, which existed prior to 2020, would be restored to oversee housing production and preservation activities funded by the Housing Trust Fund and housing voucher programs and collaborate with the Human Services Manager to develop and implement homelessness prevention initiatives. • The Recreation and Arts Department would create capacity and leadership around recreational partnership opportunities addressing conflicts between demand and capacity for recreational amenities and elevating arts and cultural affairs work in economic revitalization and social equity. The department would enable the ability to focus on the future of the Miles Memorial Playhouse and Camera Obscura buildings, reframing City Hall murals, leveraging the Beach House as a tourist destination and a key element of Santa Monica’s beachfront brand, in addition to managing the Organizational Support Program grants. 3.0 FTEs would be added including a Director, an Administrative Services Officer, and an Executive Administrative Assistant.

Finally, Council provided early direction on a number of proposed General Fund budget restorations and enhancements. Additional enhancements addressing the priorities are included in the Budget. Many of these restorations and enhancements are highlighted below according to the priority they most closely address, although many programs address a number of priorities.

ADDRESSING HOMELESSNESS
Prevent housed Santa Monicans from becoming homeless and increase the supply of affordable housing, address the behavioral health needs of vulnerable individuals and advocate for regional capacity to address homelessness.

On February 14, 2023, the City declared a local emergency on homelessness. In developing this Budget, resources allocated to addressing homelessness are informed by the City’s certified 2021-2029 Housing Element, a recent study performed on the City’s work to address homelessness (the Homelessness Study) that was completed by Moss Adams in late 2022, and the City’s Four Pillar approach to preventing and addressing homelessness that was adopted by City Council in March 2019.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 7 The first step will be the preparation of a Homelessness Strategic Plan (HSP) (Recommendation 1, Homelessness Study). The HSP, which will be funded with Measure CS funds, will build on the City’s Four Pillars framework and lay out a coordinated and systemic vision for the expansion of the homelessness response system, measurable outcomes and goals, and accompanying strategies. The process to develop the HSP will incorporate Santa Monica’s community partners, people with lived experience of homelessness, service providers, city agencies, and public and private sector partners to align around a clear vision, set of outcomes, and investments.

With this plan, the City seeks to increase continuity in an inherently shifting policy environment; improve focus on measurable objectives; and increase internal alignment and regional coordination; all towards the goal of preventing, ending, and addressing homelessness in Santa Monica.

The Budget proposes to restore and enhance staffing in the Housing Authority (using Section 8 Administrative Funding) to manage and administer the expanded size and capacity of Housing Authority voucher programs, which have grown significantly over the last several years. The additional 3.5 FTE positions will have the capacity to undertake eligibility screening of applicants on the tenant-based voucher waitlist, work with a significantly expanded caseload, more efficient use of federal voucher authority and funding, and improved customer service for tenants and housing providers (landlords).

The City continues to invest in Multi-Disciplinary Teams (MDTs) that are managed by The People Concern and include the Homeless Multidisciplinary Street Team (HMST) and City + County + Community Team (C3). The teams are staffed by licensed medical and behavioral health clinicians who can deliver immediate and intensive services to people on the street while they wait for shelter placement. These teams work collaboratively with the SMPD Homeless Liaison Program (HLP) Teams to discuss and address the needs of the City’s most high need people experiencing homelessness (PEH). The wait for housing can be long so we need to provide more services to support PEH where they are and while they wait. In support of this mission, in this Budget, we are proposing to expand this program to include a third team to start in FY 2023-24 (Recommendation 18, Homelessness Study).

The current C3 Team covers the beach and downtown area, and the additional team would cover the balance of the City. The program expansion will be funded with Measure CS funds.

The City will partner with outreach teams from The Salvation Army that will respond to requests from the SMPD HLP Team and others in the field. This will provide another resource to work with clients and connect them immediately to available services. The Salvation Army outreach teams expect to guide and provide support to clients who are in immediate crisis, with the intention to get the client off the street that day, while also working towards a longer term solution. Funding for this program is provided from the Los Angeles County’s Westside Cities Council of Governments’ Innovation Fund.

Measure CS funds, as well as federal appropriation funds, will allow us to move forward on the redesign of the SAMOSHEL interim housing program to accommodate 24/7 intakes, giving additional options for afterhours intake and facilitating SMPD transports for people experiencing homelessness and non-urgent behavioral health issues (Recommendation 15, Homelessness Study).

Using Measure CS funds, we also propose to expand Police Department staffing levels. The total increase of 7 FTE’s – 6 police officers and 1 sergeant – will enable the Police Department to expand its Homeless Liaison Program (HLP) to deploy seven days per week. The program currently operates four days per week (Recommendation 15, Homelessness Study). Anticipating the lengthy recruitment and training period for the FY 2023-25 PROPOSED BIENNIAL BUDGET
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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 8 new HLP team positions, in the short term, these Measure CS resources will be used to continue the work of the Directed Action Response Team (DaRT), a multi-department team that addresses areas of community concern on the Beach, Pier, and Downtown, and to establish a real-time crime intelligence center.

CLEAN AND SAFE SANTA MONICA
Create an atmosphere marked by clean and safe public spaces and neighborhoods, including parks for recreation and leisure activities.

Measure CS funds will be used to enhance the safety and cleanliness of our open spaces in addition to the service and technology expansions in the Police Department that are noted under the Addressing Homelessness priority (i.e., expansion of the Homeless Liaison Program Team and DaRT). During this budget period, the City will develop plans and strategy to implement a real time crime center, the Santa Monica Analytical Real Time Center (S.M.A.R.T Center), that will gather and synthesize real time data from an array of technologies, including closed circuit television (CCTV) cameras, a video management system, automated license plate readers (ALPRs), unmanned aircraft systems (UAS or drones), Live911, geo-location of SMPD public safety, sworn and professional staff to drive the focus of police resources.

Measure CS funds allow the City to continue and expand Clean and Safe programs previously funded on a onetime basis. These include the expanded security services program at Downtown parking structures and at the Pier, which will transition to be permanent programs, as will maintenance of the water features at Ken Genser and Tongva Parks. In addition, Measure CS funds are allocated to the following efforts:
• Public space maintenance investments will be expanded, including enhancements to ensure higherrisk cleanup activities are performed safely, using an additional, specialized team and higher frequency cleanup efforts focusing on waste and debris generated by people experiencing homelessness (Recommendation 10, Homelessness Study).
• Tree pruning frequencies in high-traffic areas will be increased, ensuring safer conditions for the public and improving the aesthetics of our public spaces.
• Enhanced monitoring and enforcement of the City’s home-sharing ordinance will assist the City in mitigating the impacts these home-shares have on residential neighborhoods and areas not typically subject to the impacts of commercial activities.

The two-year Community Response Unit (CRU) pilot program will conclude at the end of FY 2022-23. Throughout the pilot period, the Santa Monica Fire Department (SMFD) continuously evaluated the CRU's effectiveness and its role in Emergency Medical Services (EMS) delivery, specifically related to PEH and those at risk of becoming homeless. During this evaluation period, the Fire Department identified opportunities to improve the program through a more strategic approach to EMS delivery. To maximize response capabilities of a future CRU and take a more proactive approach to providing care to our most vulnerable populations, the Fire Department proposes to reallocate funds currently dedicated to the CRU to add an EMS Battalion Chief and a contracted case manager:

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 9 • The EMS Battalion Chief will address the changing needs of EMS, including community paramedicine, new response protocols, issues with ambulance capacity, increased low acuity calls, and rising ambulance patient offload times that impact units' timely return to service. • A dedicated case manager will work with high utilizers of the 9-1-1 system, including on-scene assistance and navigation to appropriate services. The rapidly growing list of clients and their specialized needs has exceeded firefighters’ capacity and expertise.

The Department of Transportation proposes a Transit Safety Program consisting of unarmed security guards (Transit Safety Officers) who will be assigned to ride onboard buses and conduct foot patrols at BBB bus stops. The TSO’s will be able to support Motor Coach Operators in providing customer service to riders, assist with securityrelated disturbances, serve as a deterrent to crime and unwanted behaviors, and support the City’s efforts in addressing homelessness. This program is funded using Big Blue Bus funds.

New solid waste rates will enable the City to comply with the new statewide mandatory organics recycling law (SB 1383), increase alley clearing frequencies, enhance illegal dumping and bulky item pickup services by moving to a proactive approach, support volunteer organized community cleanups, sweep the City’s increasing inventory of protected bicycle lanes, and continue its sustainability efforts to achieve the City Council’s goal of Zero Waste by 2030. (also addresses Sustainable & Connected Community priority)

CULTIVATE ECONOMIC RECOVERY & EXPAND COMMUNITY & CULTURAL

OFFERINGS
Cultivate economic opportunity and recovery and invest in community and cultural amenities and programs for all community members, focused on expanding opportunities for youth, teens and seniors.

As noted above, a new Recreation and Arts Department would create capacity and leadership to focus on efforts and initiatives that build community and advance an agenda focused on the arts and cultural affairs, which is essential to our economic revitalization.

The Budget proposes restoration of service hours at our libraries and a continuation of the hours restored last year using one-time funds. The additional hours would activate the Main Library on Saturdays, extending evening hours at all open locations (Monday through Thursday) to 8 pm, and opening the Main Library one hour earlier (Monday through Thursday) at 10 am. There will also be expanded programming for seniors and families at the Main Library and branch locations. Additional staff will not only be able to provide the customer service and research expertise for our visitors, but it will expand the creativity and volume of new and treasured programs, such as story times, technology help, and literary events. Funding for the additional hours is made possible by reallocating funds from the accelerated unfunded pension liability paydown initiative.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 10 Partial restoration of the direct service programs of CREST, the Police Activities League (PAL), and Virginia Avenue Park (VAP) will stabilize and ensure a consistent staffing structure in all youth programs that serve the most vulnerable populations in the community, including the Summer Lunch Program. The City’s direct service programs provide structured out-of-school time programming, such as enrichment activities and academic support, as an extension of the school day and well into the evening hours in support of low income and working families.

After school programs are an essential service to the community and provide rent burdened families with needed childcare and supervision. With this partial restoration, direct service programs can increase enrollments by 480 to 500 youth for a projected total participation of over 2,200 youth served. Funding for this restoration results from suspending the paydown of the City’s unfunded pension liability.

Continuation of the City’s financial support for the School District’s Playground Club program run by a nonprofit partner offering supervised afterschool play time on elementary schoolyards, using resources generated by suspending the paydown of the City’s unfunded pension liability.

The continuation of the Art of Recovery program which supports the production of free public art and cultural programming and events. Under this model, artists, arts organizations and community groups receive funding and support to produce public events. The events drive economic recovery, serve community groups across the City and provide financial support to a diverse group of artists, cultural producers, and community partners. The resources for this program result from suspending the paydown of the City’s unfunded pension liability.

Creation of a new cost covering Pickleball Program, with dedicated staff who will organize programming and open-play, provide policy and fee recommendations and provide overall program oversight.

Restoration of 15 more hours per week at the Memorial Park Gym and Fitness Room and additional 20 hours per week of field rentals, with costs covered by additional program revenue. This will provide indoor restroom access on weekday mornings for park users. And reintroduction of the highly requested Swim center Conference Room to community members and permit groups.

The introduction of cost covering specialty programs including lifeguard certification classes, at the new Santa Monica High School aquatic facility will offer classes aimed at developing the water skills of participants who aspire to become lifeguards and will serve as a feeder program for Santa Monica Aquatics and future lifeguards.

Permanent restoration of the Neighborhood Grant program, using funds reallocated from the paydown of the City’s unfunded pension liability, which will provide a $7,000 grant to each of the City’s seven neighborhood groups.

Establish a Small Business Assistance and Tenant Improvement Fund that will provide revolving loans or grants and technical assistance to highest need businesses. The Fund will include an ongoing $100,000 allocation from the General Fund (from reallocated unfunded pension liability paydown funds) and a one-time $50,000 amount from the City’s Community Development Block Grant (CDBG) allocation.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 11 Restoration of key positions in the Community Development Department will enhance economic recovery work. A Senior Planner will work on streamlining permitting processes and clarifying permitting requirements on the City’s website, leading the Local Coastal Program Update which will further streamline permitting, and serving as the City’s liaison to the California Coastal Commission in order to resolve complex permit applications.

An Economic Development Administrator will focus on the City’s real estate portfolio to maximize revenues, streamline leasing guidelines, and provide support to deliver on the City’s economic recovery projects including the VAP Community Kitchen incubator, local hire initiatives, small business support and entrepreneurship pathways for ethnic minority businesses. These investments will be funded with reallocated paydown funds.

Staff will undertake a strategic modernization of the City’s Business License Tax program and bring an updated ordinance to the City’s voters in 2024 that would aim to encourage investment and innovation, assist Santa Monica businesses in rebounding, and position the City to equitably and fairly tax existing and emerging businesses to support essential services. It would also institute improvements that would promote business growth and align with the City’s priority to cultivate equitable and inclusive economic opportunities for traditionally underserved communities including minority owned businesses and microenterprises. (also addresses Racial Justice, Equity & Social Diversity priority)
The City will implement a program offering reduced Resource, Recycling and Recovery rates for qualifying lowincome households with the adoption of new solid waste rates, using reallocated paydown funds. (also addresses Racial Justice, Equity & Social Diversity priority)

RACIAL JUSTICE, EQUITY & SOCIAL DIVERSITY
The City of Santa Monica acknowledges the effects of generational and institutional racism and discrimination, and its consequences that continue to impact our residents and businesses. These lessons of our history cannot be ignored. The City is committed to advancing racial equity and social diversity to improve the wellbeing of people who live, work, learn, play, and do business in our City and create a community where differences in life outcomes cannot be predicted by race, class, gender, disability or other identities. Everyone in Santa Monica must have an opportunity to thrive.

The City has integrated diversity, equity, justice and inclusion into its work throughout all departments. The City’s Sustainable City Plan includes metrics around social diversity and equity and the City’s Wellbeing Project initiated the City’s work with the Government Alliance on Race and Equity (GARE) and undertook key projects and trainings to help close the equity gap. Disrupted by the COVID-19 pandemic and City restructuring, the City’s Diversity, Equity and Inclusion Team seeks to pick up these efforts, engage different communities, and work to close equity gaps in economic property, education, health and wellness, and other areas that impact the quality of everyone’s wellbeing.

As part of the Out of Home Wayfinding franchise agreement, the franchisee, Big Outdoor, has agreed to return two percent of their earnings to the City. At the March 11 Workshop, staff received direction to allocate this portion of funding (approximately $100,000-$250,000 per year starting in FY 2025-2026) to an Equity Fund that can be used to support the City’s work to advance equity.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 12 Work is also continuing in the following areas:
• Language Access – implementation of the Language Access Administrative Instruction, expansion of the City’s real-time translation services, and purchase of hearing assistance equipment for public meetings. • Reframe – Continuation of the City’s project to recontextualize the murals as well as an effort to develop a land acknowledgement for Santa Monica in partnership with local Native American communities. • Racial Equity Committee – Using existing resources to support the professional development of our Equity and Inclusion Officers in the areas of diversity, equity and inclusion as the principles of public administration to help them make a greater impact in their work and develop future leaders with an integral understanding of how DEI informs their work.

The Budget includes the continuation of the Trades Intern Program (TIP). This is a program reaching across many of the city’s operations that focuses on supporting and empowering vulnerable Santa Monica youth and adults who face barriers to employment, which may include involvement with the criminal justice system, exiting probation or parole, or not having obtained a high school diploma or GED. In particular, TIP has served youth of color, with African American (33%) and Latino (63%) youth comprising 96 percent of participants since 2015. For many participants, the program has become a vehicle towards personal, social, and economic stability. Since 2015, a total of 27 trades interns have participated in the program. 19 TIP graduates have successfully attained full-time employment in the trades, with 10 acquiring full-time, permanent positions within the City.

The Budget includes the funds to allow for a hybrid public meeting option for meetings that take place in Council Chambers and the Santa Monica Institute (SMI) conference room in the Civic Center Parking Structure.

This model leverages changes in meeting structure that would allow for all public comment and public hearings to occur early in the meeting to keep additional staffing costs to a minimum. The cost is covered using reallocated paydown funds.

The addition of an ADA Coordinator will provide one point of contact for requests for accommodations and questions from the public and lead City initiatives to ensure that facilities comply with the regulations of the Americans with Disabilities Act (ADA).

To ensure that all vendors and service providers have significant practicable opportunities to compete for and participate in the City’s procurement of goods and services, the City will conduct a disparity study to explore current barriers to equity and inclusion of the City’s procurement and contracting practices, design a plan to implement changes responding to disparity study findings, and create a structural framework for vendor education, outreach, and support.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 13 SUSTAINABLE & CONNECTED COMMUNITY
Ensure that City policies and programs enhance our resources, prevent and remedy harm to the natural environment and human health, and benefit the social and economic wellbeing of the community for the sake of current and future generations.

Sustainable practices are integrated into programs, policies and operations across the City. A significant portion of the City’s work addressing the Sustainability priority is funded by the City’s Enterprise Funds, including the Water, Wastewater, Resource Recovery and Recycling, and Big Blue Bus Funds, which have all made strategic investments and operational changes to advance sustainability outcomes.

Council established meaningful sustainability goals for both municipal operations and the community with the adoption of the Sustainable City Plan and the Climate Action and Adaptation Plan. The updated Sustainable City Plan reflects best practices for data informed decision making and municipal sustainability. Council also adopted aggressive goals to improve sustainability and resiliency by committing to achieve Water Self-Sufficiency by 2023, Zero Waste by 2030 and Carbon Neutrality by 2050 or sooner. The Sustainable Water Master Plan, Zero Waste Strategic Plan, Bike Action Plan, and Electric Vehicle Action Plan outline strategies to integrate sustainable practices and achieve Council adopted outcomes. These plans and the associated goals have led to investments in water recycling and sourcing local water supplies, enhanced food waste collection programs, procurement of green power, a successful transition to an electric bus fleet, efforts to electrify buildings and the expansion of electric vehicle charging infrastructure.

Council also emphasized the importance of sustainability in planning for the future of the Santa Monica Airport following its expected closure in early 2029.

The Budget includes staffing enhancements to support additional compliance and testing requirements for the Sustainable Water Requirement permit to support water recycling and groundwater recharge operations, enforce urban runoff policies, and to enhance water conservation activities, and programs and operational changes to achieve zero waste. (also addresses the Clean & Safe priority) Staff is also added to support the BBB’s recruitment and training efforts to restore bus service to pre-pandemic levels in order to provide transit services to the community. This is critical as the department as well as other transit agencies nationally are facing a shortage of Motor Coach Operators.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 14 CONCLUSION
The COVID-19 pandemic impacted the City and City operations in unimaginable ways. The rapid loss of revenues resulted in drastic reductions in programs and services that are still being felt to this day. In a highly constrained environment, this Budget harnesses newly adopted tax measures and reallocates existing resources to expand existing programs to achieve vital restorations that will not only nurture our economic recovery but ensure that programs serving our youth, families, and seniors are expanded to meet community need. Investments proposed in this Budget not only align with City Council priorities but are filtered through an equity lens to ensure that resources are directed to where they are most needed and serving vulnerable populations. Even though we continue to be in a state of recovery, it is moderating as reflected in this Budget, demonstrating a tremendous amount of work ahead and positive steps forward in advancing City Council’s priorities addressing community needs and stabilizing the organization.

Respectfully submitted,
David White
City Manager
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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 15 FY 2023-25 PRESUPUESTO BIENAL PROPUESTO

MENSAJE DEL ADMINISTRADOR MUNICIPAL
Tengo el placer de presentar el Presupuesto Bienal Propuesto para el año fiscal 2023-25 de la ciudad de Santa Mónica.

El presupuesto bienal propuesto para el año fiscal 2023-25 (el Presupuesto) se prepara en el contexto de nuestra salida de un período de reestructuración significativa debido a la pandemia de COVID-19, mientras que también hemos estado trabajando para abordar pasivos sin precedentes. A pesar de estos retos, la ciudad se está recuperando y reconstruyendo, como demuestran las importantes nuevas inversiones en toda nuestra comunidad.

Además, mediante el cultivo de nuevas fuentes de ingresos a través de iniciativas de asociación y el apoyo de los votantes a nuevas medidas fiscales, este Presupuesto tiene la capacidad de asignar recursos para abordar las prioridades del Consejo de la Ciudad y de la comunidad -seguridad pública, programas y servicios para hacer frente a la falta de vivienda y servicios comunitarios vitales para los jóvenes, las familias y las personas mayorespara garantizar que la comunidad siga avanzando.

Estas inversiones son sólo una parte de la historia. Santa Mónica es una comunidad vibrante y seguirá prosperando mirando hacia el futuro y avanzando en proyectos como la planificación del futuro del aeropuerto de Santa Mónica, ampliando la oferta cultural, centrando nuestro trabajo en la sostenibilidad y esforzándonos por conseguir una comunidad en la que todos en Santa Mónica tengan la oportunidad de prosperar.

El Presupuesto establece el plan de gestión y de gastos de la Ciudad para los dos años que van del 1 de julio de 2023 al 30 de junio de 2025.

El año fiscal 2023-25 es el primer período presupuestario bienal para el período de emergencia después de COVID-19. Este Presupuesto establece un plan para reconstruir y mejorar los servicios en un contexto de continua incertidumbre económica impulsada por la escasez de mano de obra, las interrupciones en la cadena de suministro, la inflación y los conflictos mundiales a nivel nacional e internacional, además de los importantes pasivos y el creciente mantenimiento aplazado a nivel local. Para ayudar a garantizar que este Presupuesto concentra los recursos de la Ciudad donde más se necesitan, el Consejo Municipal celebró un Taller del Consejo el 11 de marzo de 2023 para determinar sus prioridades y proporcionar orientación sobre las partidas presupuestarias clave. El Presupuesto refleja los resultados de ese Taller, incluyendo la restauración de servicios clave de la Ciudad y la realización de inversiones en cinco áreas prioritarias:
• Hacer frente a la falta de vivienda.
• Limpieza y seguridad en Santa Mónica
• Cultivar la recuperación económica, ampliar la oferta cultural y para la comunidad • Justicia racial, equidad y diversidad social
• Comunidad sostenible y conectada
Estas prioridades continúan la necesaria labor de ayudar a nuestra comunidad a recuperarse de la pandemia de COVID-19 y de sus repercusiones económicas y sociales, pero también centran el trabajo en garantizar la resiliencia y la equidad de Santa Mónica a largo plazo.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 16 FY 2023-25 PRESUPUESTO BIENAL PROPUESTO

MENSAJE DEL ADMINISTRADOR MUNICIPAL
Se prevé que los flujos de ingresos del Fondo General de la Ciudad alcancen su trayectoria anterior a la pandemia en cinco años. Mientras tanto, los menores niveles de ingresos están limitando nuestra capacidad para apoyar un restablecimiento completo de los servicios a los niveles anteriores a la pandemia. Las tendencias de los viajes globales, las compras al por menor y el trabajo híbrido y a distancia hacen que Santa Mónica deba adaptar su economía local para el futuro. La ciudad ha dado pasos clave para adaptar la zonificación y las leyes para ayudar en esta transición mientras las empresas locales realizan inversiones clave en hoteles, hospitales y viviendas que harán que la economía de Santa Mónica sea resistente a largo plazo. El Presupuesto también refleja nuevas fuentes de ingresos y oportunidades de asociación que fortalecen Santa Mónica. • La Medida CS, adoptada en 2022, aumenta el Impuesto de Ocupación Transitoria de la Ciudad (Impuesto Hotelero) en un punto porcentual para las estadías en hoteles y en tres puntos porcentuales para las estadías en casas compartidas. Se prevé que este impuesto genere aproximadamente 5,0 millones de dólares anuales durante el periodo bienal. Aunque se trata de un impuesto de ingresos generales, lo que significa que no está restringido en cuanto al uso del mismo, el sondeo comunitario realizado en previsión de que el Consejo aprobara la medida para la votación mostró una necesidad urgente que tenemos de nuevos fondos para hacer frente a los impactos de la falta de vivienda y para mejorar la seguridad pública. La propia medida, que recibió el 73% de los votos, señalaba la intención de que estos fondos se destinaran a abordar el problema de las personas sin hogar, a mejorar los tiempos de respuesta a las emergencias del 911 y la protección policial de los vecindarios así como a mejorar la seguridad y la limpieza de nuestros espacios públicos. • La Medida GS, adoptada en 2022, es una medida electoral de iniciativa ciudadana que promulga un Impuesto de Transferencia Documental de tercer nivel de un 5% adicional para las ventas de propiedades de 8 millones de dólares o más, con ingresos restringidos para financiar la prevención de la falta de vivienda, proyectos de viviendas asequibles y escuelas. Se prevé que esta medida podría generar aproximadamente 50 millones de dólares anuales. La naturaleza volátil de esta fuente de ingresos, basada en las ventas de propiedades de muy alto valor, y su administración y programación, requieren un horizonte más largo para la programación de estos fondos. A pesar de eso, la planificación y los ajustes organizativos pueden comenzar ya en el año fiscal 2023-24 para lo que probablemente será una estrategia de aplicación plurianual de la Medida GS. • Los votantes también aprobaron en 2022 la Medida HMP, que impone un impuesto adicional a los minoristas de cannabis y otros negocios de cannabis con licencia. Es necesario seguir trabajando para enmendar el Código Municipal para permitir un aumento de los establecimientos minoristas relacionados con el cannabis y no se prevén ingresos durante el próximo periodo bienal.
• El trabajo de la ciudad con socios privados, públicos y sin fines de lucro, así como con agencias que conceden subvenciones, está contribuyendo aún más a importantes inversiones en nuestra comunidad y proporcionando un enfoque más diversificado para aprovechar los recursos durante un periodo de interrupción de nuestras fuentes tradicionales de ingresos.
• La ciudad ha firmado recientemente un acuerdo con Big Outdoor para instalar quioscos digitales de orientación en zonas comerciales que proporcionarán a nuestras pequeñas empresas una forma de conectar con clientes potenciales y generarán ingresos adicionales para la ciudad, incluido un fondo anual de Diversidad, Equidad e Inclusión (DEI).

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• La ciudad prosigue su colaboración con el Departamento de Salud Mental (DMH) del condado de Los Ángeles para poner en marcha un programa piloto de lanzamiento de una camioneta de transporte terapéutico dotada de personal del DMH en la ciudad de Santa Mónica. La camioneta responderá conjuntamente a las llamadas de emergencia entrantes relacionadas con, o se presume que involucran, personas no combativas y médicamente estables que experimentan una crisis de salud mental o conductual. El programa también ofrece una alternativa de apoyo y acelerada a las necesidades de transporte de los clientes con enfermedades mentales agudas que requieren cuidados adicionales. El programa está diseñado para aliviar los recursos del personal de emergencias para que se centren en otras prioridades de salud y seguridad. Además, los profesionales clínicos del DMH trabajan junto con los equipos del Programa de Enlace para Personas sin Hogar de la ciudad para localizar, identificar y proporcionar ayuda a las personas sin hogar.
• La ciudad estableció We Are Santa Monica Fund en 2021 para proporcionar una vía para las donaciones privadas destinadas a apoyar a la comunidad de Santa Mónica, incluido el apoyo a la recuperación económica, la equidad racial y la diversidad social, los vecindarios saludables y los vecinos necesitados. El Fondo es un socio importante de la ciudad para involucrar a la comunidad y a las empresas locales en la prestación de apoyo adicional en estas áreas. • Con la ayuda de las nuevas subvenciones recibidas en la segunda mitad del año fiscal 2022-23, los trabajos avanzan en el programa MicroGrid de modernización de City Yards y en los proyectos Streetscape del corredor del vecindario de Lincoln (LiNC). Los fondos adicionales significativos de subvenciones estatales y federales y los acuerdos de desarrollo recibidos a fines del año fiscal 2022-23 promoverán el trabajo de la Ciudad para apoyar las necesidades de salud conductual de los residentes vulnerables y la electrificación de nuestros autobuses. Y el personal sigue solicitando subvenciones para mejorar nuestros servicios en los ámbitos de la vivienda asequible, los servicios para personas sin hogar, la seguridad pública, los parques, las bibliotecas y la sostenibilidad.

A medida que vayamos avanzando en nuestro camino hacia la recuperación, nos basaremos en el uso de criterios para gestionar nuestro trabajo, asegurándonos de que los programas que ofrecemos abordan de forma eficaz y eficiente nuestras prioridades.

CONTEXTO FISCAL
El presupuesto global propuesto para la ciudad de Santa Mónica es de 740,9 millones de dólares en el año fiscal 2023-24, y de 746,4 millones en el año fiscal 2024-25. Esto refleja las actividades operativas y de capital de 30 fondos a través de 15 departamentos y aproximadamente 2.097 puestos permanentes y temporales equivalentes a tiempo completo.

El mayor componente del presupuesto corresponde al Fondo General, que se financia principalmente con ingresos fiscales y presta servicios compartidos por igual por todos los miembros de la comunidad y los visitantes. El presupuesto del Fondo General asciende a 436,9 millones de dólares en el año fiscal 2023-24, y a 458,6 millones de dólares en 2024-25.

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El presupuesto de toda la ciudad incluye también varios fondos empresariales y de ingresos especiales, fondos que se destinan a usos específicos o que se basan en la utilización de recursos por parte de particulares. • Entre los fondos más importantes que contribuyen a las operaciones de la ciudad, los Fondos de Agua, Aguas Residuales, Big Blue Bus (BBB), Aeropuerto y Cementerio cuentan con ingresos suficientes para cubrir las necesidades operativas y de capital durante el periodo bienal. Si el Consejo aprueba las nuevas tasas en junio de 2023, el fondo de Recuperación y Reciclaje de Recursos (RRR) seguirá siendo autosuficiente durante el periodo bienal, además de mejorar los servicios ofrecidos. • Se prevé que los Fondos Recreativos del Muelle y de la Playa requieran subvenciones y anticipos durante el periodo presupuestario bienal por un total aproximado de 8,7 millones de dólares. Las continuas restricciones de ingresos, incluido el cierre parcial del estacionamiento de Pier Deck, y los planes pendientes para ajustar las tarifas de estacionamiento en la playa, están contribuyendo significativamente a la situación. • El Fondo Comunitario de Banda Ancha (CBB), que apoya las operaciones de CityNet, se fusionará con el Fondo General, lo que permitirá una mayor eficacia gracias a un reparto más flexible de los recursos.

El enfoque presupuestario bienal de la ciudad significa que el año fiscal 2023-24 representa el año de excepción para nuestro presupuesto bienal del programa de mejoras de capital (CIP). El presupuesto del CIP para el año fiscal 2023-24 asciende a 104,1 millones de dólares, de los que 13,5 millones representan la parte correspondiente al Fondo General. Antes de la pandemia, el Fondo General asignaba 21 millones de dólares anuales a su CIP. Esta cantidad se redujo a 7,8 millones de dólares en 2020-21 y ha aumentado gradualmente desde entonces. Sin nuevas fuentes de fondos, no hay capacidad para restaurar el presupuesto anual del CIP del Fondo General a 21 millones de dólares hasta el año fiscal 2024-25 como muy pronto. Las cantidades actuales asignadas al CIP no son suficientes para abordar el mantenimiento aplazado de infraestructuras y equipos, la sustitución de tecnología/informática y de la flota, y un enfoque renovado de los servicios comunitarios que se tuvieron que interrumpir en la pandemia, aunque se han programado algunos fondos para iniciar el proceso de planificación de la conversión del aeropuerto en el año fiscal 2023-24. En este momento, un total de 362 millones de dólares en proyectos permanecen sin fondos, y son objeto de seguimiento para su consideración en futuros ciclos de financiamiento. Más del 93% (337 millones de dólares) de la lista de proyectos sin fondos corresponde a solicitudes de recursos del Fondo General, mientras que el 7% adicional (25 millones de dólares) corresponde a solicitudes de infraestructuras para recursos del Fondo del Muelle.

SOSTENIBILIDAD FISCAL
El Presupuesto se nutre de las Previsiones Financieras Quinquenales e informa sobre ellas. Para incluir un programa o servicio en curso en el Presupuesto, debe existir la capacidad de financiar este gasto a largo plazo utilizando ingresos, reservas asignadas o restringidas, o reservas de capital circulante. La previsión del Fondo General muestra unos ingresos que sólo superan ligeramente a los gastos (en aproximadamente 100.000 dólares) sobre una base anual durante el periodo presupuestario. Este saldo positivo refleja la utilización de las reservas de capital circulante a partir del año fiscal 2024-25. Se necesitará capital circulante más allá del año fiscal 2024-25, e incluso con el uso de estas reservas, el personal proyecta actualmente saldos negativos de 0,6 y 1,5 millones de dólares, respectivamente, en 2026-27 y 2027-28. Estos saldos negativos representan el 0,1% y el 0,3% de los ingresos de esos dos años y se sitúan en un nivel que puede gestionarse durante los próximos tres años.

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MENSAJE DEL ADMINISTRADOR MUNICIPAL
A 30 de junio de 2022, las reservas no restringidas del Fondo General ascendían al 70% de lo que eran a 30 de junio de 2019.1 Unas reservas sólidas son necesarias para amortiguar la prestación de servicios del impacto de los gastos de emergencia, los pasivos contingentes y la incertidumbre económica. Desde 2020, las demandas sobre estas reservas se han visto agravadas por:
• Prestación de servicios esenciales durante la pandemia de COVID-19. • Pagos de más de 229,8 millones de dólares en acuerdos legales durante los últimos tres años relacionados con acusaciones de abuso sexual por parte de un antiguo empleado.

Pensando en el futuro, la ciudad se encuentra en litigio por una solicitud de transición a las elecciones de distrito. El caso está actualmente a la espera de ser visto en el Tribunal Supremo de California, y si la Ciudad pierde el caso, los impactos financieros para la Ciudad serán elevados. Por último, la Ciudad tiene importantes pasivos de capital que deben ser abordados, incluyendo el reequipamiento sísmico de la Estructura de Estacionamiento 1 con un costo de al menos 13 millones de dólares. La Ciudad ha tomado muchas medidas para reforzar nuestra situación financiera, y el presupuesto del Fondo General para el año fiscal 2023-24 está respaldado por las reservas de un Fondo Pluvial que ascienden al 13% de los gastos corrientes, pero el impacto de estos pasivos financieros limita la capacidad de la Ciudad para hacer frente a las muy necesarias restauraciones de servicios y personal.

POLÍTICAS FISCALES
Las Políticas Fiscales de la Ciudad, incluidas como apéndice en el Presupuesto, promueven la transparencia, la responsabilidad y un marco común para la gestión de los recursos financieros. Al inicio de los cierres de COVID-19, el Consejo suspendió temporalmente o modificó una serie de políticas para proporcionar una mayor flexibilidad en el uso de los fondos. Tres años después, la amplia perturbación que sigue afectando a las economías, junto con un horizonte de recuperación prolongado, exigen una reevaluación de estas políticas.

Pago del pasivo por pensiones no financiado: El 11 de abril de 2023, el Consejo autorizó la suspensión del pago acelerado del pasivo por pensiones no financiado de la Ciudad desde el año fiscal 2022-23 hasta el año fiscal 2027-28, o más tarde, para restaurar una serie de servicios y programas comunitarios como la ampliación del horario de la Biblioteca Principal, la restauración de la capacidad del Programa Juvenil y la restauración de puestos en Planificación y Desarrollo Económico para impulsar las actividades de recuperación económica, entre otras restauraciones. Aunque el pago acelerado de los pasivos no financiados es una herramienta de gestión fiscal prudente, que mitiga los costos de los intereses de los años futuros, la ciudad debe sopesar esta herramienta de gestión fiscal a largo plazo con el estado actual de nuestros servicios comunitarios. La política anterior se adoptó en 2019, cuando los programas de la Ciudad funcionaban a pleno rendimiento, las reservas eran sólidas y el Fondo General tenía capacidad para asumir pagos adicionales de entre 2,5 y 3,5 millones de dólares al año más allá de la contribución anual obligatoria a las pensiones. Hasta ahora, la Ciudad ha realizado pagos adicionales por valor de más de 88 millones de dólares bajo el paraguas de las políticas de pago anticipado, lo que la convierte en líder en este logro entre otros miembros de CalPERS.
1 El 25 de abril de 2023, el Consejo de la Ciudad aprobó acuerdos con los demandantes por un monto de 122,5 millones de dólares para resolver todas las demandas contra la ciudad que surgieron de denuncias de abuso sexual por parte del exempleado municipal Eric Uller. Una parte del acuerdo se cubre con las reservas del Fondo General. Con el ajuste de las reservas utilizadas para este pago, las reservas no restringidas estarían en el 45% de su nivel en el año fiscal 2018-19.

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MENSAJE DEL ADMINISTRADOR MUNICIPAL
Paso de previsiones financieras a diez años a previsiones financieras a cinco años: Antes de la pandemia, la Ciudad había pasado a una previsión a diez años para disponer de una ventana de planificación más larga a la hora de abordar proyectos de capital y cambios en las obligaciones de pensiones. Debido a la persistente incertidumbre en muchos elementos que influyen en las condiciones económicas, desde las repercusiones del trabajo a distancia, la inflación, la escasez de mano de obra, los cambios en los viajes y las compras y las interrupciones de la cadena de suministro, el personal propone una reversión permanente a las previsiones quinquenales para mitigar el riesgo de presupuestar utilizando proyecciones de ingresos sin fundamento. El personal seguirá vigilando las tendencias de los costos extraordinarios más allá del periodo de previsión de cinco años.

Eliminación del presupuesto de control de gastos: La presupuestación con control de gastos permitía anteriormente a los departamentos del Fondo General mantener un tercio de los ahorros de su presupuesto operativo no salarial para utilizarlos a discreción del jefe de departamento para cumplir la misión del departamento. Con unos presupuestos extremadamente restringidos en toda la ciudad y las reservas de fondos en un nivel bajo, es prudente y necesario considerar el mejor uso para toda la ciudad de cualquier ahorro.

Contingencia operativa del Fondo General (Fondo de reserva): El 5 de mayo de 2020, el Consejo autorizó al personal a rebajar el nivel de la reserva para imprevistos del Fondo General del 15% de los gastos corrientes al 12,5% para ayudar a equilibrar el presupuesto mientras los ingresos experimentaban graves descensos. Unas reservas sólidas protegen nuestra capacidad para prestar servicios esenciales y conservar los puestos de trabajo durante las emergencias y las fluctuaciones económicas. También son una señal de la salud financiera de la ciudad y fundamentales para mantener la calificación AAA de los bonos de la ciudad. La política fiscal refleja una reconstrucción gradual del Fondo de Reserva, con un nivel de reserva mínimo del 13% para el año fiscal 2023-24, y del 13,5% para el año fiscal 2024-25, alcanzando un nivel de reserva del 15% a tiempo para el Presupuesto Bienal del año fiscal 2027-29.

PRIORIDADES E INVERSIONES COMUNITARIAS
El Presupuesto Bienal Propuesto para el año fiscal 2023-25 incorpora la dirección proporcionada por el Consejo de la Ciudad y los miembros de la comunidad en el Taller del 11 de marzo de 2023, donde el Consejo adoptó cinco prioridades para actuar como base del Presupuesto. Se prevé que las medidas GS y CS generen importantes recursos para resolver problemas hipersensibles y desafiantes. Siguiendo las indicaciones del Consejo, y a la luz de las necesidades y expectativas de la comunidad, el Presupuesto refleja la creación de dos departamentos. Los dos departamentos llevarán adelante la labor del Departamento de Servicios Comunitarios de responder a los retos sociales y económicos a los que se enfrentan los residentes, a la necesidad de sanación y recuperación de la comunidad, y de proporcionar servicios y programas que enriquezcan la vida y ayuden a la gente a prosperar:
• El Departamento de Vivienda y Servicios Humanos se convertiría en el punto de organización de los servicios y programas para personas sin hogar, lo que permitiría a la ciudad poner en marcha los programas y servicios resultantes de las Medidas CS y GS, abordar las recomendaciones del Estudio sobre Personas sin Hogar del auditor interno y proporcionar un enfoque central y liderazgo en una serie de programas de vivienda, educación y servicios sociales. Este departamento también administraría las inversiones para apoyar a las poblaciones vulnerables a través de la gestión del Programa de Subvenciones para Servicios Humanos

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(HSGP). Se realizarían cambios menores en las especificaciones de los puestos de trabajo existentes para reflejar el nombre, el alcance y la estructura del nuevo departamento. Se restablecería un puesto de Gestor de Vivienda, que existía antes de 2020, para supervisar las actividades de producción y conservación de viviendas financiadas por el Fondo Fiduciario de Vivienda y los programas de vales de vivienda y colaborar con el Gestor de Servicios Humanos para desarrollar y aplicar iniciativas de prevención de la falta de vivienda. • El Departamento de Recreación y Artes crearía capacidad y liderazgo sobre las oportunidades de asociación recreativa abordando los conflictos entre la demanda y la capacidad de las instalaciones recreativas y elevando el trabajo de las artes y los asuntos culturales en la revitalización económica y la equidad social. El departamento permitiría centrarse en el futuro de los edificios Miles Memorial Playhouse y Camera Obscura, replantear los murales del Consejo de la Ciudad, potenciar la Beach House como destino turístico y elemento clave de la marca frente al mar de Santa Mónica, además de gestionar las subvenciones del Programa de Apoyo Organizativo. Se añadirían 3,0 ETC incluyendo un Director, un Oficial de Servicios Administrativos y un Asistente Administrativo Ejecutivo.

Por último, el Consejo proporcionó una primera orientación sobre una serie de propuestas de restablecimiento y mejora del presupuesto del Fondo General. En el presupuesto se incluyen mejoras adicionales que abordan las prioridades. Muchas de estas restauraciones y mejoras se destacan a continuación según la prioridad a la que más se refieran, aunque muchos programas abordan varias prioridades.

HACER FRENTE A LA FALTA DE VIVIENDA
Evitar que los habitantes de Santa Mónica que tienen una vivienda se queden sin ella y aumentar la oferta de viviendas asequibles, abordar las necesidades de salud conductual de las personas vulnerables y abogar por la capacidad regional para abordar el problema de la falta de vivienda.

El 14 de febrero de 2023, la ciudad declaró una emergencia local en materia de personas sin hogar. En el desarrollo de este Presupuesto, los recursos asignados para abordar el problema de la falta de vivienda están informados por el Elemento de Vivienda 2021-2029 certificado por la Ciudad, un estudio reciente sobre el trabajo de la ciudad para abordar el problema de personas sin hogar (el Estudio sobre personas sin hogar) que fue completado por Moss Adams a finales de 2022, y el enfoque de los Cuatro Pilares de la ciudad para prevenir y abordar el problema de la falta de vivienda que adoptó el Consejo de la Ciudad en marzo de 2019.

El primer paso será la preparación de un Plan Estratégico para Personas sin Hogar (HSP) (Recomendación 1, Estudio sobre Personas sin Hogar). El HSP, que se financiará con fondos de la Medida CS, se basará en el marco de los Cuatro Pilares de la ciudad y establecerá una visión coordinada y sistémica para la ampliación del sistema de respuesta a las personas sin hogar, unos resultados y objetivos mensurables y unas estrategias de acompañamiento.

El proceso para desarrollar el HSP incorporará a los socios comunitarios de Santa Mónica, personas con experiencia vivida de falta de vivienda, proveedores de servicios, agencias de la ciudad y socios de los sectores público y privado para alinearse en torno a una visión clara, un conjunto de resultados e inversiones. Con este plan, la ciudad pretende aumentar la continuidad en un entorno político inherentemente cambiante; mejorar el enfoque en objetivos mensurables; y aumentar la alineación interna y la coordinación regional; todo ello hacia el objetivo de prevenir, acabar y abordar el problema de las personas sin hogar en Santa Mónica.

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MENSAJE DEL ADMINISTRADOR MUNICIPAL
El Presupuesto propone restablecer y mejorar la dotación de personal de la Autoridad de la Vivienda (utilizando la Financiación Administrativa de la Sección 8) para gestionar y administrar el mayor tamaño y capacidad de los programas de vales de la Autoridad de la Vivienda, que han crecido significativamente en los últimos años. Los 3,5 puestos ETC adicionales tendrán capacidad para llevar a cabo la comprobación de la elegibilidad de los solicitantes en la lista de espera de vales para inquilinos, trabajar con un número de casos significativamente mayor, hacer un uso más eficiente de la autoridad y el financiamiento federal de vales y mejorar el servicio al cliente para inquilinos y proveedores de vivienda (propietarios).

La Ciudad sigue invirtiendo en Equipos Multidisciplinares (EMD) que son gestionados por The People Concern e incluyen el Equipo Multidisciplinar de Personas Sin Hogar en la Calle (HMST) y el Equipo Ciudad + Condado + Comunidad (C3). Los equipos están formados por médicos y profesionales de la salud conductual autorizados que pueden prestar servicios inmediatos e intensivos a las personas que se encuentran en la calle mientras esperan a que se les ubique en un refugio. Estos equipos trabajan en colaboración con los equipos del Programa de Enlace para Personas sin Hogar (HLP) del SMPD para debatir y abordar las necesidades de las personas sin hogar (PEH) más necesitadas de la ciudad. La espera para conseguir una vivienda puede ser larga, por lo que necesitamos ofrecer más servicios para apoyar a las PEH allí donde se encuentren y mientras esperan. En apoyo de esta misión, en este Presupuesto proponemos ampliar este programa para incluir un tercer equipo que se iniciará en el año fiscal 2023-24 (Recomendación 18, Estudio sobre las personas sin hogar). El actual equipo C3 cubre la playa y el centro de la ciudad, y el equipo adicional cubriría el resto de la ciudad. La ampliación del programa se financiará con fondos de la Medida CS.

La ciudad se asociará con equipos de divulgación del Salvation Army que responderán a las solicitudes del equipo HLP del SMPD y otros sobre el terreno. Esto proporcionará otro recurso para trabajar con los clientes y conectarlos inmediatamente con los servicios disponibles. Los equipos de extensión del Ejército de Salvación esperan orientar y proporcionar apoyo a los clientes que se encuentran en una crisis inmediata, con la intención de sacar al cliente de la calle ese mismo día, al tiempo que trabajan para encontrar una solución a más largo plazo. El financiamiento de este programa procede del Fondo de Innovación del Consejo de Gobiernos de las Ciudades del Lado Oeste del Condado de Los Ángeles.

Los fondos de la Medida CS, así como los fondos de la asignación federal, nos permitirán avanzar en el rediseño del programa de viviendas provisionales SAMOSHEL para dar cabida a las admisiones las 24 horas, dando opciones adicionales para la admisión fuera de horario y facilitando los transportes de SMPD para las personas que experimentan la falta de vivienda y los problemas de salud conductual no urgentes (Recomendación 15, Estudio sobre la falta de vivienda).

Utilizando los fondos de la Medida CS, también proponemos ampliar la plantilla del Departamento de Policía. El aumento total de 7 ETC -6 oficiales de policía y 1 sargento- permitirá al Departamento de Policía ampliar su Programa de Enlace con Personas sin Hogar (HLP) para desplegarse siete días a la semana. El programa funciona actualmente cuatro días a la semana (Recomendación 15, Estudio sobre Personas sin Hogar). Anticipando el largo periodo de contratación y formación para los nuevos puestos del equipo HLP, a corto plazo, estos recursos de la Medida CS se utilizarán para continuar el trabajo del Equipo de Respuesta de Acción Dirigida (DaRT), un equipo multidepartamental que abordaes áreas de preocupación comunitaria en la Playa, el Muelle y el Centro de la ciudad, y para establecer un centro de inteligencia criminal en tiempo real.

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MENSAJE DEL ADMINISTRADOR MUNICIPAL
LIMPIEZA Y SEGURIDAD EN SANTA MÓNICA
Crear un ambiente caracterizado por espacios públicos y barrios limpios y seguros, incluidos parques para actividades recreativas y de ocio.

Los fondos de la Medida CS se utilizarán para mejorar la seguridad y la limpieza de nuestros espacios abiertos, además de las ampliaciones de servicios y tecnología en el Departamento de Policía que se señalan en la prioridad "Hacer frente a la falta de vivienda" (es decir, la ampliación del Equipo del Programa de Enlace con las Personas sin Hogar y DaRT). Durante este periodo presupuestario, la Ciudad desarrollará planes y una estrategia para poner en marcha un centro de delincuencia en tiempo real, el Centro Analítico en Tiempo Real de Santa Mónica (S.M.A.R.T Center), que recopilará y sintetizará datos en tiempo real de una serie de tecnologías, incluidas las cámaras de circuito cerrado de televisión (CCTV), un sistema de gestión de video, lectores automáticos de placas (ALPR), sistemas aéreos no tripulados (UAS o drones), Live911, geolocalización de la seguridad pública del SMPD, personal jurado y profesional para dirigir el enfoque de los recursos policiales.

Los fondos de la Medida CS permiten a la Ciudad continuar y ampliar los programas de Limpieza y Seguridad financiados anteriormente de forma puntual. Entre ellos se incluye el programa ampliado de servicios de seguridad en las estructuras de estacionamiento del centro y en el muelle, que pasarán a ser programas permanentes, al igual que el mantenimiento de los elementos de los parques Ken Genser y Tongva. Además, los fondos de la Medida CS se destinan a los siguientes esfuerzos:
• Se ampliarán las inversiones en mantenimiento de espacios públicos, incluyendo mejoras para garantizar que las actividades de limpieza de mayor riesgo se realizan de forma segura, utilizando un equipo adicional, especializado y esfuerzos de limpieza de mayor frecuencia centrados en los desechos y escombros generados por personas sin hogar (Recomendación 10, Estudio sobre las Personas sin Hogar).
• Se aumentarán las frecuencias de poda de en zonas de mucho tráfico, lo que garantizará unas condiciones más seguras para el público y mejorará la estética de nuestros espacios públicos. • La mejora de la supervisión y la aplicación de la ordenanza de viviendas compartidas de la ciudad ayudará a mitigar los impactos que tales viviendas tienen en los vecindarios residenciales y en las zonas que no suelen estar sujetas a los impactos de las actividades comerciales.

El programa piloto de dos años de la Unidad de Respuesta Comunitaria (CRU) concluirá a finales del año fiscal 2022-

23. A lo largo del periodo piloto, el Departamento de Bomberos de Santa Mónica (SMFD) evaluó continuamente la eficacia de la CRU y su papel en la prestación de Servicios Médicos de Emergencia (EMS) específicamente relacionados con los PEH y las personas en riesgo de quedarse sin hogar. Durante este periodo de evaluación, el Cuerpo de Bomberos identificó oportunidades para mejorar el programa a través de un enfoque más estratégico de la prestación de EMS. Para maximizar la capacidad de respuesta de una futura CRU y adoptar un enfoque más proactivo en la atención a nuestras poblaciones más vulnerables, el Cuerpo de Bomberos propone reasignar los fondos dedicados actualmente a la CRU para añadir un Jefe de Batallón de EMS y un gestor de casos contratado:

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• El Jefe de Batallón de EMS abordará las necesidades cambiantes de EMS, incluida la paramédica comunitaria, los nuevos protocolos de respuesta, los problemas con la capacidad de las ambulancias, el aumento de las llamadas de baja agudeza y el incremento de los tiempos de descarga de los pacientes de las ambulancias que repercuten en el retorno puntual de las unidades al servicio. • Un gestor de casos especializado trabajará con las personas que más utilizan el sistema de 9-1-1, incluida la asistencia en el lugar de los hechos y la navegación hasta los servicios adecuados. La creciente lista de clientes y sus necesidades especializadas ha superado la capacidad y los conocimientos de los bomberos.

El Departamento de Transporte propone un Programa de Seguridad en el Tránsito consistente en guardias de seguridad desarmados (Oficiales de Seguridad en el Tránsito) que serán asignados para viajar a bordo de los autobuses y realizar patrullas a pie en las paradas de autobús de BBB. Los TSO podrán apoyar a los operadores de autocares en la prestación de servicios de atención al cliente a los pasajeros, ayudar con los disturbios relacionados con la seguridad, servir como elemento disuasorio de la delincuencia y los comportamientos no deseados, y apoyar los esfuerzos de la ciudad para hacer frente a la falta de vivienda. Este programa se financia con fondos del Big Blue Bus.

Las nuevas tasas de residuos sólidos permitirán a la Ciudad cumplir con la nueva ley estatal de reciclaje obligatorio de orgánicos (SB 1383), aumentar las frecuencias de limpieza de callejones, mejorar los servicios de vertido ilegal y recogida de artículos voluminosos adoptando un enfoque proactivo, apoyar las limpiezas comunitarias organizadas por voluntarios, barrer el creciente inventario de carriles protegidos para bicicletas de la Ciudad y continuar con sus esfuerzos de sostenibilidad para alcanzar el objetivo del Consejo de la Ciudad de Cero Residuos para 2030. (también aborda la prioridad de Comunidad Sostenible y Conectada) CULTIVAR LA RECUPERACIÓN ECONÓMICA, AMPLIAR LA OFERTA CULTURAL

Y PARA LA COMUNIDAD
Cultivar las oportunidades y la recuperación económicas e invertir en servicios y programas comunitarios y culturales para todos los miembros de la comunidad, centrándose en ampliar las oportunidades para los jóvenes, los adolescentes y las personas mayores.

Como se ha señalado anteriormente, un nuevo Departamento de Ocio y Artes crearía capacidad y liderazgo para centrarse en esfuerzos e iniciativas que construyan comunidad y hagan avanzar una agenda centrada en las artes y los asuntos culturales, que es esencial para nuestra revitalización económica.

El Presupuesto propone el restablecimiento de las horas de servicio en nuestras bibliotecas y la continuación de las horas restablecidas el año pasado con fondos únicos. Las horas adicionales activarían la Biblioteca Principal los sábados, ampliarían el horario nocturno en todas las sedes abiertas (de lunes a jueves) hasta las 8 p.m., y abrirían la Biblioteca Principal una hora antes (de lunes a jueves) a las 10.00 a.m. También se ampliará la programación para mayores y familias en la Biblioteca Principal y en las sucursales. El personal adicional no sólo podrá proporcionar el servicio de atención al cliente y la experiencia en investigación para nuestros visitantes, sino que ampliará la

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MENSAJE DEL ADMINISTRADOR MUNICIPAL
creatividad y el volumen de nuevos y preciados programas, como las horas del cuento, la ayuda tecnológica y los eventos literarios. Los fondos de horas adicionales son posibles gracias a la reasignación de fondos de la iniciativa de pago acelerado del pasivo por pensiones no financiadas.

El restablecimiento parcial de los programas de servicios directos de CREST, la Liga de Actividades Policiales (PAL) y el Parque de la Avenida Virginia (VAP) estabilizará y garantizará una estructura de personal coherente en todos los programas juveniles que atienden a las poblaciones más vulnerables de la comunidad, incluido el Programa de Almuerzos de Verano. Los programas de servicios directos de la ciudad ofrecen una programación estructurada fuera del horario escolar, como actividades de enriquecimiento y apoyo académico, como prolongación de la jornada escolar y hasta bien entrada la noche en apoyo de las familias trabajadoras y con bajos ingresos. Los programas después de la escuela son un servicio esencial para la comunidad y proporcionan a las familias cargadas de alquiler el cuidado y la supervisión necesarios para los niños. Con este restablecimiento parcial, los programas de servicios directos pueden aumentar las inscripciones entre 480 y 500 jóvenes para una participación total prevista de más de 2.200 jóvenes atendidos. El financiamiento de esta restauración resulta de la suspensión del pago del pasivo por pensiones no financiado de la Ciudad.

Continuación del apoyo financiero de la Ciudad al programa Club de patio de recreo del distrito escolar dirigido por un socio sin fines de lucro que ofrece tiempo de juego supervisado después de la escuela en los patios de las escuelas primarias, utilizando los recursos generados por la suspensión del pago del pasivo por pensiones no financiado de la Ciudad.

La continuación del programa El arte de la recuperación que apoya la producción de arte público gratuito y la programación y eventos culturales. Según este modelo, los artistas, las organizaciones artísticas y los grupos comunitarios reciben financiamiento y apoyo para producir actos públicos. Los eventos impulsan la recuperación económica, sirven a grupos comunitarios de toda la ciudad y proporcionan apoyo financiero a un grupo diverso de artistas, productores culturales y socios comunitarios. Los recursos para este programa proceden de la suspensión del pago del pasivo por pensiones no financiado de la Ciudad.

Creación de un nuevo costo que cubra el Programa de Pickleball, con personal dedicado que organizará la programación y el juego abierto, proporcionará recomendaciones sobre políticas y tarifas y se encargará de la supervisión general del programa.

Restauración de 15 horas semanales más en el Gimnasio y Sala de Fitness del Parque Memorial y 20 horas semanales adicionales de alquiler de campos, con los costos cubiertos por los ingresos adicionales del programa.

Esto proporcionará a los usuarios del parque acceso a los baños interiores durante las mañanas de los días laborables.

Y la reintroducción de la muy solicitada Sala de Conferencias del Centro de Natación para los miembros de la comunidad y los grupos de permisos.

La introducción de programas especializados que cubren los costos, incluidas las clases de certificación de socorristas, en la nueva instalación acuática de la escuela preparatoria de Santa Mónica ofrecerá clases destinadas a desarrollar las habilidades acuáticas de los participantes que aspiran a convertirse en socorristas y servirá como programa de alimentación para Santa Monica Aquatics y los futuros socorristas.

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MENSAJE DEL ADMINISTRADOR MUNICIPAL
Restauración permanente de la Programa de subvenciones vecinales, utilizando fondos reasignados del pago del pasivo de pensiones no financiado de la Ciudad, que proporcionará una subvención de 7.000 dólares a cada uno de los siete grupos vecinales de la Ciudad.

Establecer un Fondo de ayuda a las pequeñas empresas y de mejora de los arrendatarios que proporcionará préstamos renovables o subvenciones y asistencia técnica a las empresas más necesitadas. El Fondo incluirá una asignación continua de 100.000 dólares del Fondo General (procedentes de fondos reasignados para el pago de obligaciones de pensiones no financiadas) y una cantidad única de 50.000 dólares procedentes de la asignación de la Subvención en Bloque para el Desarrollo Comunitario (CDBG) de la ciudad.

El restablecimiento de puestos clave en el Departamento de Desarrollo Comunitario reforzará la labor de recuperación económica. Un planificador de experiencia trabajará en la agilización de los procesos de concesión de permisos y en la aclaración de los requisitos para obtenerlos en el sitio web de la ciudad, dirigirá la actualización del Programa Costero Local, que agilizará aún más la concesión de permisos, y actuará como enlace de la ciudad con la Comisión Costera de California para resolver solicitudes de permisos complejas. Un administrador de desarrollo económico se centrará en la cartera inmobiliaria de la ciudad para maximizar los ingresos, racionalizar las directrices de arrendamiento y proporcionar apoyo para llevar a cabo los proyectos de recuperación económica de la ciudad, incluida la incubadora de la cocina comunitaria de VAP, las iniciativas de contratación local, el apoyo a las pequeñas empresas y las vías de emprendimiento para las empresas de minorías étnicas. Estas inversiones se financiarán con fondos de amortización reasignados.

El personal emprenderá una modernización estratégica del programa del Impuesto sobre Licencias Comerciales de la ciudad y presentará una ordenanza actualizada a los votantes de la ciudad en 2024 con el objetivo de fomentar la inversión y la innovación, ayudar a las empresas de Santa Mónica a repuntar y posicionar a la ciudad para gravar de forma equitativa y justa a las empresas existentes y emergentes para apoyar los servicios esenciales. También instituiría mejoras que promoverían el crecimiento empresarial y se alinearían con la prioridad de la ciudad de cultivar oportunidades económicas equitativas e inclusivas para las comunidades tradicionalmente desatendidas, incluidos los negocios propiedad de minorías y las microempresas (also addresses Racial Justice, Equity & Social Diversity priority)
La Ciudad pondrá en marcha un programa que ofrezca tarifas reducidas de Recursos, Reciclaje y Recuperación para los hogares con bajos ingresos que cumplan los requisitos con la adopción de nuevas tarifas de residuos sólidos, utilizando fondos de amortización reasignados (también aborda la prioridad de Justicia Racial, Equidad y Diversidad Social)

JUSTICIA RACIAL, EQUIDAD Y DIVERSIDAD SOCIAL
La ciudad de Santa Mónica reconoce los efectos del racismo y la discriminación generacionales e institucionales, y sus consecuencias, que siguen afectando a nuestros residentes y empresas. Estas lecciones de nuestra historia no pueden ser ignoradas. La ciudad está comprometida con el avance de la equidad racial y la diversidad social para mejorar el bienestar de las personas que viven, trabajan, aprenden, juegan y hacen negocios en nuestra ciudad y crear una comunidad donde las diferencias en los resultados de la vida no puedan predecirse por raza, clase, género, discapacidad u otras identidades. Todos en Santa Mónica deben tener la oportunidad de prosperar.

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MENSAJE DEL ADMINISTRADOR MUNICIPAL
La Ciudad ha integrado la diversidad, la equidad, la justicia y la inclusión en su trabajo en todos los departamentos.

El Plan de Ciudad Sostenible de la ciudad incluye métricas en torno a la diversidad social y la equidad y el Proyecto de Bienestar de la Ciudad inició el trabajo de la ciudad con la Alianza Gubernamental sobre Raza y Equidad (GARE) y emprendió proyectos y formaciones clave para ayudar a cerrar la brecha de la equidad. Interrumpido por la pandemia de COVID-19 y la reestructuración de la ciudad, el Equipo de Diversidad, Equidad e Inclusión de la ciudad trata de retomar estos esfuerzos, involucrar a las diferentes comunidades y trabajar para cerrar las brechas de equidad en la propiedad económica, la educación, la salud y el bienestar y otras áreas que afectan a la calidad del bienestar de todos.

Como parte del acuerdo de franquicia de Out of Home Wayfinding, el franquiciado, Big Outdoor, ha acordado devolver el dos por ciento de sus ganancias a la Ciudad. En el taller del 11 de marzo, el personal recibió instrucciones para asignar esta parte de los fondos (aproximadamente entre 100.000 y 250.000 dólares al año a partir del año fiscal 2025-2026) a un Fondo de equidad que pueda utilizarse para apoyar el trabajo de la ciudad en favor de la equidad.

También se sigue trabajando en las siguientes áreas:
• Language Access – aplicación de la Instrucción Administrativa de Language Access, ampliación de los servicios de traducción en tiempo real de la ciudad y adquisición de equipos de asistencia auditiva para las reuniones públicas.
• Reframe – Continuación del proyecto de la ciudad para recontextualizar los murales, así como un esfuerzo para desarrollar un reconocimiento de la tierra de Santa Mónica en colaboración con las comunidades nativas americanas locales.
• Comité de Equidad Racial – Utilizar los recursos existentes para apoyar el desarrollo profesional de nuestros Responsables de Equidad e Inclusión en las áreas de diversidad, equidad e inclusión como principios de la administración pública para ayudarles a tener un mayor impacto en su trabajo y desarrollar futuros líderes con una comprensión integral de cómo la DEI informa su trabajo.

El Presupuesto incluye la continuación del Programa de becarios de oficios (TIP). Se trata de un programa que abarca muchas de las operaciones de la ciudad y que se centra en apoyar y capacitar a los jóvenes y adultos vulnerables de Santa Mónica que se enfrentan a barreras para el empleo, que pueden incluir la implicación con el sistema de justicia penal, la salida de la libertad condicional, o no haber obtenido un diploma de escuela preparatoria o GED. En particular, TIP ha atendido a jóvenes de color, siendo los jóvenes afroamericanos (33%) y latinos (63%) el 96% de los participantes desde 2015. Para muchos participantes, el programa se ha convertido en un vehículo hacia la estabilidad personal, social y económica. Desde 2015, un total de 27 becarios de oficios han participado en el programa. 19 graduados del TIP han conseguido con éxito un empleo a tiempo completo en los oficios, y 10 de ellos han adquirido puestos permanentes a tiempo completo en la ciudad.

El Presupuesto incluye los fondos para permitir una opción de reunión pública híbrida para las reuniones que tengan lugar en las Cámaras del Consejo y en la sala de conferencias del Instituto Santa Mónica (SMI) en la Estructura de Estacionamiento del Centro Cívico. Este modelo aprovecha los cambios en la estructura de las reuniones que permitirían que todos los comentarios del público y las audiencias públicas se produjeran al principio de la reunión para mantener al mínimo los costos adicionales de personal. El costo se cubre con fondos de pago reasignados.

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MENSAJE DEL ADMINISTRADOR MUNICIPAL
proporcionará un punto de contacto para las solicitudes de adaptaciones y las preguntas del público y dirigirá las iniciativas de la Ciudad para garantizar que las instalaciones cumplen la normativa de la Ley sobre Estadounidenses con Discapacidades (ADA).

Para garantizar que todos los vendedores y proveedores de servicios tengan oportunidades viables significativas de competir y participar en la adquisición de bienes y servicios por parte de la ciudad, esta llevará a cabo un estudio de disparidad para explorar las barreras actuales a la equidad e inclusión de las prácticas de adquisición y contratación de la ciudad, diseñará un plan para implementar cambios que respondan a los hallazgos del estudio de disparidad y creará un marco estructural para la educación, divulgación y apoyo a los vendedores.

COMUNIDAD SOSTENIBLE Y CONECTADA
Garantizar que las políticas y los programas de la Ciudad mejoren nuestros recursos, prevengan y remedien los daños al entorno natural y a la salud humana, y beneficien el bienestar social y económico de la comunidad por el bien de las generaciones actuales y futuras.

Las prácticas sostenibles están integradas en los programas, políticas y operaciones de toda la ciudad. Una parte significativa del trabajo de la ciudad que aborda la prioridad de Sostenibilidad está financiada por los Fondos Empresariales de la ciudad, incluidos los Fondos de Agua, Aguas Residuales, Recuperación de Recursos y Reciclaje y Big Blue Bus, que han realizado inversiones estratégicas y cambios operativos para avanzar en los resultados de sostenibilidad.

El Consejo estableció objetivos de sostenibilidad significativos tanto para las operaciones municipales como para la comunidad con la adopción del Plan de Ciudad Sostenible y el Plan de Acción y Adaptación Climática. El Plan de Ciudad Sostenible actualizado refleja las mejores prácticas para la toma de decisiones basada en datos y la sostenibilidad municipal. El Consejo también adoptó objetivos agresivos para mejorar la sostenibilidad y la capacidad de recuperación comprometiéndose a lograr la Autosuficiencia Hídrica para 2023, Cero Residuos para 2030 y la Neutralidad de Carbono para 2050 o antes. El Plan Maestro de Agua Sostenible, el Plan Estratégico de Residuos Cero, el Plan de Acción para la Bicicleta, y el Plan de Acción para el Vehículo Eléctrico detallan estrategias para integrar prácticas sostenibles y lograr los resultados adoptados por el Consejo. Estos planes y los objetivos asociados han dado lugar a inversiones en el reciclaje del agua y el abastecimiento de agua local, la mejora de los programas de recogida de residuos alimentarios, la adquisición de energía verde, una transición exitosa a una flota de autobuses eléctricos, esfuerzos para electrificar los edificios y la ampliación de la infraestructura de recarga de vehículos eléctricos.

El Consejo también hizo hincapié en la importancia de la sostenibilidad a la hora de planificar el futuro del aeropuerto de Santa Mónica tras su cierre previsto para principios de 2029.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 29 El presupuesto incluye mejoras en la dotación de personal para apoyar el cumplimiento adicional y los requisitos de ensayo del permiso de Requisito de Agua Sostenible para apoyar las operaciones de reciclaje de agua y recarga de aguas subterráneas, hacer cumplir las políticas de escorrentía urbana y mejorar las actividades de conservación del agua, así como programas y cambios operativos para lograr un nivel cero de residuos. (también aborda la prioridad de limpieza y seguridad)
También se añade personal para apoyar los esfuerzos de contratación y formación del BBB para restablecer el servicio de autobuses a los niveles anteriores a la pandemia con el fin de proporcionar servicios de tránsito a la comunidad.

Esto es crucial, ya que el departamento, así como otras agencias de tránsito a nivel nacional, se enfrentan a una escasez de operadores de autocares.

CONCLUSIÓN
La pandemia de COVID-19 impactó en la Ciudad y en las operaciones de la Ciudad de formas inimaginables. La rápida pérdida de ingresos se tradujo en drásticas reducciones de programas y servicios que aún hoy se dejan sentir.

En un entorno altamente restringido, este Presupuesto aprovecha las medidas fiscales recientemente adoptadas y reasigna los recursos existentes para ampliar los programas existentes con el fin de lograr restauraciones vitales que no sólo alimentarán nuestra recuperación económica, sino que garantizarán que los programas que atienden a nuestros jóvenes, familias y ancianos se amplíen para satisfacer las necesidades de la comunidad. Las inversiones propuestas en este Presupuesto no sólo se alinean con las prioridades del Consejo de la Ciudad, sino que se filtran a través de una lente de equidad para garantizar que los recursos se dirigen allí donde son más necesarios y atienden a las poblaciones vulnerables. Aunque seguimos en un estado de recuperación, esta se está moderando, como refleja este Presupuesto que demuestra una enorme cantidad de trabajo por delante y pasos positivos para avanzar en las prioridades del Consejo de la Ciudad que abordan las necesidades de la comunidad y estabilizan la organización.

Respetuosamente presentado,
David White
Administrador municipal
FY 2023-25 PRESUPUESTO BIENAL PROPUESTO

MENSAJE DEL ADMINISTRADOR MUNICIPAL

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SANTA MONICA AT A GLANCE

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SANTA MONICA AT A GLANCE
Santa Monica: Populus Felix In Urbe Felici (Fortunate people in a fortunate place) Santa Monica is a beautiful beachside community of 8.3 square miles, situated on the westside of Los Angeles County, about 16 miles from Downtown Los Angeles. It is bordered by the City of Los Angeles on three sides and the Pacific Ocean on the west.

HISTORIC TIMELINE
Santa Monica is home to a mix of commercial districts, residential communities, and recreational and art venues.

Each of Santa Monica’s character-rich neighborhoods – Pico, Wilshire Montana, Ocean Park, Downtown, Sunset Park, North of Montana, and Northeast – has a unique vibe. Recently named by National Geographic as one of the Top "10 Beach Cities in the World" and by TIME as one of the "Best Places to Live," Santa Monica features three miles of Pacific Ocean beaches and the Santa Monica Pier. High-profile global technology and entertainment companies, small entrepreneurial start-ups, restaurants and retail businesses call the City home.

Santa Monica is a full-service city. City departments provide police, fire, a regional transportation network, water, refuse and recycling, streets, parking, planning, building, engineering, free public Wi-Fi, a high-speed fiber optic network, parks, affordable housing, economic development, library, rent control, recreational, cultural, and educational services to the community.

B.C.E. 1542 1769 1790 1821 1875 1886 1909 1917 1945 1979 1989 1994 2016 2017 2020 2020 Indigenous
peoples lived
here for
millennia,
and their
descendants
continue to
inhabit the
area.*
Area called
“Santa
Monica” by
Father Juan
Crespi with
the Gaspar
de Portola
expedition.

Mexico sold
three large land
grants, creating
private ownership
of the local
parcels: Rancho
La Ballona,
Rancho Boca de
Santa Monica,
and Rancho San
Vicente y Santa
Monica.

Santa Monica
Pier was built.

The City of
Santa Monica is
incorporated.

Rent
control
adopted by
voters.

Santa Monica
adopts its
City Charter.

The City
joins the
Governmental
Alliance on
Racial Equity
(GARE)
Local
Emergency
declared in
response to
COVID-19.

City Council
approves
formation of the
Racial Equity
Committee
Juan Rodriguez
Cabrillo drops
anchor in Santa
Monica Bay.

Tongva
relocated
to Mission
San Gabriel
where they
were forced
into labor and
converted to
Christianity.

Col. Robert S.

Baker & Senator
John P. Jones
record a map
for the town of
Santa Monica
and the first lot
was sold for
$300.

Clover Field
airstrip was
established.

In the 1940s,
it housed the
Douglas Aircraft
factory, which
manufactured
military aircraft
for World War II.

Santa Monica
was one of
the first cities
to adopt a
Sustainable
City Plan with
targets.

Third Street
Promenade
opens.

Metro Expo
light rail opens
three new
stations in
Santa Monica.
*Gabrieleno/Gabrielino Tongva and Kizh. In addition, Fernandeño Tataviam, Ventureño/Chumash, Acjachemen (Juaneño), Payómkawichum (Luiseño), and Nicoleño are the names of other groups and tribes of this region.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 31 FY 2023-25 PROPOSED BIENNIAL BUDGET

SANTA MONICA AT A GLANCE

QUICK FACTS

POPULATION IN SANTA MONICA
AGE DISTRIBUTION IN 2021
1980
80,000 82,000 84,000 86,000 88,000 90,000 92,000 94,000 1990
2000
2010
2021
88,314
86,905
84,084
89,736
91,103
Source: U.S. Census Bureau, Census 2021 American Community Survey

AGE GROUP
0-4 3,365 (3.7%)
5-19 11,239 (12.3%)
20-64 61,490 (67.5%)
65+ 15,009 (16.5%)
Educational Attainment: 71% Bachelor’s Degree or higher Median Household Income: $94,906
Percentage of Homeowners: 31.4%
Percentage of Renters: 68.6%
Households: 45,541
Median Gross Rent: $2,157
Person per Household: 1.96
Median Value of Owner Occupied Housing: $1,582,300
Source: U.S. Census Bureau, 2021 American Community Survey

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 32 LOCAL ECONOMY
The City’s economy continues the path to recovery in the aftermath of the COVID-19 global pandemic. The community has made proactive investments to support local businesses, workers, and residents through actions that include adopting permanent outdoor dining and zoning changes to keep businesses open and workers employed; welcoming 14 new business developments planned for downtown; supporting free public art and cultural programming and events through the Art of Recovery program; and adding Planning and Economic Development staffing to support economic development.

While the challenges have been real, Santa Monica has a very robust and diverse economy. Known as “Silicon Beach,” Santa Monica’s businesses are at the leading edge of the nation’s creative economy and startup scene.

People are coming from all over the world to work at companies like Activision, Red Bull, and Snap. From entertainment leaders like Universal Music Group and Lionsgate to startup successes like GoodRx, Truecar, and Beautycounter, Santa Monica is a home for creativity and business innovation. Renowned healthcare providers like UCLA Medical Center, Providence St. John’s Health Center and Kaiser Permanente also call Santa Monica home and have played a pivotal role in the community’s care over the past three years. Santa Monica offers Class A office space with access to sun, surf, and a highly skilled workforce along with a nationally recognized high-speed fiber optic network. Principal local employers are in the fields of education, municipal government, technology, fintech, health care, policy, and research. Santa Monica’s leading industry sectors are Information Technology, Professional, Scientific and Technical Services, Accommodation and Food Services, and Health Care and Social Assistance (by employment).

FY 2023-25 PROPOSED BIENNIAL BUDGET

SANTA MONICA AT A GLANCE

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 33 Employers and employees are drawn to the area’s cultural, artistic, and recreational amenities. Unbeatable yearround sunshine and warm weather helps too! Tourism is an important driver of the local economy. In 2021, Santa Monica welcomed over 3.5 million visitors who spent $750 million in Santa Monica, generating significant retail sales and transient occupancy tax revenues for the City. The City is making progress to once more attract over 8 million visitors as it did in pre-covid times.
5,747 jobs are supported by the tourism industry. The City’s 41 hotels typically operate with high occupancy rates year-round, apart from the recent dip due to COVID-19 and international travel restrictions.

Retail plays a major role in Santa Monica’s economy. Santa Monica is home to a number of distinctive shopping districts. In the heart of Downtown, the Santa Monica Pier, Third Street Promenade, and Santa Monica Place draw locals and visitors alike. South of the Civic Center are the Main Street and Pico Boulevard districts, with eclectic shops, art, performance venues, and fine dining. On the north end of town, numerous boutiques and trendy restaurants line Montana Avenue, and Wilshire Boulevard provides an important thoroughfare throughout the City.

While our streets have had some quiet days over the last few years, residents, businesses, and workers are reemerging, and on an average day, tourists, shoppers, and employees significantly boost the daytime population to an estimated 250,000 people. The streets are now more vibrant than ever with the addition of outdoor dining activations throughout the City.

GOVERNMENT AND ADMINISTRATION
The City of Santa Monica was incorporated on
November 30, 1886 and subsequently adopted a
City Charter in 1945. In 1947, a Council-Manager
form of government was established following a
vote of the City’s residents and approval by the
California legislature.

The City Council consists of seven members elected
by the community at large to four-year terms.

Elections are held every two years, at which time
either three or four Council members are elected.

The Council selects the Mayor and Mayor Pro
Tempore. City Council appoints a City Manager
to administer the City, a City Attorney and a City
Clerk. The City Council also serves as the governing
bodies for the Santa Monica Redevelopment
Successor Agency, the Housing and Parking
Authorities, and the Public Financing Authority.

FY 2023-25 PROPOSED BIENNIAL BUDGET

SANTA MONICA AT A GLANCE

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 34 SCHOOLS
The highly rated Santa Monica-Malibu Unified School District serves both Santa Monica and Malibu residents.

There are ten elementary schools, two middle schools, three high schools, and an alternative K-8 school in the district. The City of Santa Monica provides $28 million in funding support to SMMUSD annually.

Santa Monica College (SMC), one of the state’s top two-year community colleges, serves over 30,000 full-time and part-time students on several campuses and offers more than 300 new courses in 58 subject areas. For 29 years, the college has ranked #1 in transferring students to the University of California, University of Southern California, and other four-year campuses.

FY 2023-25 PROPOSED BIENNIAL BUDGET

SANTA MONICA AT A GLANCE

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 35 FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - OVERALL ECONOMIC CONDITIONS

NATIONAL ECONOMY
The U.S. economy rebounded strongly in 2021
and 2022 from the pandemic-induced recession
of 2020. However, high inflation, lingering
supply chain issues, high interest rates, labor
shortages, and the war in Ukraine are all
contributing to a softening of the economy
and uncertainty about the future course of the
economy. The most recent Bloomberg survey
of leading economists projects tepid economic
growth, as measured by GDP, of just 1% in
both 2023 and 2024, and predicts a 65%
chance of a recession sometime in the next 12
months. Consumer spending and the housing
market, which helped propel the economy, are
showing signs of weakness. While unemployment remains near historic lows (below 4%), the rate is expected to grow slightly over the next two years as the economy cools, and a number of companies, particularly in the technology sector, have announced large layoffs. While inflation has begun to moderate, CPI is still running nearly 15% above the level of two years ago.
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: Bloomberg
Real GDP Growth vs. Unemployment
Real GDP Unemployment
The amount of funding recommended for programs and services is driven by available resources. Economic conditions at the national, state and local levels affect the level of revenue available to the City each year. This section identifies the existing economic conditions that influenced the development of the annual budget. The section includes summary charts for Citywide budgeted revenues and expenditures, including an overview of retirement expenditures and employee contributions. The section also presents summary information regarding the major tax revenues and their impact on the General Fund revenue forecasting, and revenue analysis for each fund.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 36 STATE ECONOMY
The future course of the State economy reflects
the same uncertainty as the Nation. The
March 2023 UCLA Forecast for the Nation
and California does anticipate that the State
economy will outperform the national economy
regardless of whether or not a recession occurs.

The state’s economy will be helped by a strong
construction sector, a still sufficient State
budget rainy-day fund, and increasing demand
in California for things such as defense goods,
labor-saving equipment and software. This
is expected to help keep unemployment at
relatively low levels despite the layoffs in the
technology sector.
\
On the consumer side, inflation-adjusted
personal income is expected to remain flat or
even fall slightly for the remainder of 2023
before relatively mild increases in 2024 and
2025. The UCLA Forecast also projects that
strong demand for the limited housing stock,
as well as new laws permitting accessory
dwelling units to be built in neighborhoods
zoned for single family homes, should lead to
increased homebuilding through 2025. This
increase will be partially mitigated by the
impact of high mortgage rates.

FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - OVERALL ECONOMIC CONDITIONS
0 50
100
150
200
$-
$200
$400
$600
$800
$1,000
2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: UCLA Forecast for the Nation and California March 2023 California Housing Market
Taxable Sales in Billions Res Bldg Permits in Thousands $0
$100
$200
$300
$400
$500
0 2
4 6
8 2017 2018 2019 2020 2021 2022 2023 2024
Source: National Association of Realtors
U.S. Existing Home Sales
Home Sales in Millions Median Price in Thousands

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 37 LOCAL ECONOMY
Santa Monica has historically benefited from a more diversified tax base with less reliance on Sales and Property Taxes than most other cities. While these tax revenues are important for Santa Monica, the local economy is also highly dependent on tourism and the hospitality industry, both of which have recovered strongly since the depths of the pandemic. Transient Occupancy Taxes (TOT), Sales Taxes, and parking-related revenues (including Parking Facility Taxes) together accounted for nearly 50% of General Fund revenues pre-COVID-19. TOT and Sales Taxes have essentially returned to pre-COVID levels despite the fact that the recovery in international tourism and business travel is still lagging. Parking-related revenues have recovered somewhat, but are not expected to reach pre-COVID levels until at least FY 2027-28.

Property taxes have remained
positive as assessed value
increases continued during the
pandemic. These increases
are expected to continue, but
at a slower pace for the next
two years, reflecting a slight
softening in the real estate
market. The number of property
transfers year-to-date (through
February) is down nearly 37%
in FY 2022-23 after strong
increases the prior two years,
however, the average transfer
value has continued to increase.

Business License taxes have begun to recover from the pandemic, but are not expected to return to pre-COVID levels until FY 2026-27. TOT and Documentary Transfer Tax revenues will also be bolstered by voter-approved measures increasing the TOT rate (Measure CS) from 14% to 15% (to 17% for homeshares) and adding a third tier to the City’s Documentary Transfer Tax (Measure GS) of $56 per $1,000 transfer value for transfers of $8 million and over. Due to the extreme volatility in this account, no revenue estimate will be included until the FY 2023-24 Midyear report, and these revenues will be included in the Special Revenue Sources Fund rather than the General Fund due to the restrictions of the measure. The voters also approved Measure HMP establishing business license tax rates for cannabis businesses, but no revenue from these sources is anticipated before FY 2025-26.

A more detailed discussion of local taxes follows the Citywide Budget overview.

FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - OVERALL ECONOMIC CONDITIONS
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
0 500
1,000
1,500
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 City of Santa Monica Property Transfers
Number of Transfers Average Tax Per Transfer
Source: County of Los Angeles Registrar Recorder

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 38 FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
TOTAL FY 2023-24 CITY REVENUES: $747.2 MILLION
Total projected City revenues for FY 2023-24
are $747.2 million, net of reimbursements and
transfers. This represents a $15.5 million or 2.1%
increase from the FY 2022-23 revised budget. The
increase reflects greater General Fund revenues
primarily from Transient Occupancy and Property
taxes, revenues from the merge of the Community
Broadband Fund to the General Fund, anticipated
developer payments and advertising revenue from
the City’s new Digital Wayfinding Kiosk program. In
the other funds, revenues reflect increased capital
project funding, adjustments reflecting the timing
of estimated reimbursements from grant expenses,
scheduled water and wastewater rate adjustments,
anticipated solid waste rate adjustments, and
estimated funding allocations from various other
government agencies. Revenue details and
projections for the next two fiscal years for all City
funds are detailed in the Revenue Analysis section.

TOTAL FY 2024-25 CITY REVENUES: $782.0 MILLION
Revenues in FY 2024-25 are projected to be
$782.0 million, net of reimbursements and
transfers. This represents a $34.8 million or

4.7% increase from FY 2023-24, primarily driven
by greater General Fund revenues reflecting
continued recovery from the pandemic-induced
economic downturn. In the other funds, changes
are driven by various items, as in FY 2023-24,
including increased capital project funding,
adjustments reflecting the timing of estimated
reimbursements from grant expenses, scheduled
water and wastewater rate adjustments,
anticipated solid waste rate adjustments, and
estimated funding allocations from various other
government agencies. Revenue details and
projections for the next two fiscal years for all
City funds are detailed in the Revenue Analysis
section.

Citywide Revenues by Category
Citywide Revenues by Category
Charges for Services
Property Taxes

10.7%
Sales Taxes

21.5%
Other Taxes

3.5%
Transient
Occupancy
Taxes

8.9%
Charges for
Services

26.2%
Utilities Users
Taxes

4.6%
Business License
Taxes

4.1%
Licenses &
Permits

4.8%
Other

6.3%
intergovernmental
& Grants

9.4%
Property Taxes

10.9%
Sales Taxes
22%
Other Taxes

3.4%
Transient
Occupancy
Taxes

9.4%
Charges for
Services

25.5%
Utilities Users
Taxes

4.7%
Business License
Taxes

4.3%
Licenses &
Permits

4.9%
Other
6%
intergovernmental
& Grants

8.9%

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 39 TOTAL FY 2023-24 CITYWIDE EXPENDITURE BUDGET: $740.9 MILLION The FY 2023-24 budget includes $740.9 million in
expenditures, net of reimbursements and transfers, for
all funds. This amount represents a 3.8% increase over
the revised budget for FY 2022-23, primarily reflecting maintenance of effort increases in the operating budget for compensation and operating expenditures, the allocation of new resources to address City Council and community
priorities, subsidies and loans to the Pier Fund and
Beach Fund, and adjustments for estimated grant funded
operating and capital project expenditures.

TOTAL FY 2024-25 CITYWIDE EXPENDITURE BUDGET: $746.4 MILLION The FY 2024-25 budget includes $746.4 million in
expenditures, net of reimbursements and transfers, for all funds. This amount represents a net increase of 0.8% from FY 2023-24, primarily due to a decrease in programmed
capital expenditures in the Big Blue Bus Fund. Additional capital expenditures commencing in FY 2024-25 will be
programmed in the Big Blue Bus Fund as part of the FY
2024-26 Biennial Capital Improvement Program budget
process. Operating expenditures continue to reflect impacts of annual cost of living increases on employee compensation and benefits and operating expenditures, the allocation of resources to address City Council and community priorities, and subsidies and loans to the Pier Fund and Beach Fund.

The difference between Citywide revenues and expenditures is due to disparities in timing between revenues and
expenditures for capital projects, as well as the use of working capital reserves to cover expenditures in the
General Fund.

The City continues to comply with its policy to fund ongoing costs using ongoing revenues. As in previous years, City revenues are subject to changes in economic conditions, State budget actions, and legislative changes.

Citywide Expenditures by Fund
(in millions)
FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
Citywide Expenditures by Fund
(in millions)
Enterprise Funds
$251
34%
General Fund
$412.4
56%
Other Funds
$77.5
10%
Enterprise Funds
$245
34%
General Fund
$433.4
58%
Other Funds
$68
9%

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 40 FY 2023-24 GENERAL FUND REVENUES: $438.7 MILLION;
EXPENDITURES: $436.9 MILLION
Total FY 2023-24 General Fund revenues are projected to be $438.7 million, which is $13.4 million (3.2%) greater than the FY 2022-23 revised budget. The General Fund Operating Expenditure Budget for FY 2023-24 is $423.4 million and Capital Improvement Projects add an additional $13.5 million, for a total General Fund budget of $436.9 million. Operating expenditures increase $16.1 million, or 4.0% from the FY 2022-23 revised budget. The increase is primarily related to operating expenditures, which reflect impacts of annual cost of living increases on employee compensation and benefits and projected increases for operating expenditures (including insurance, gas and utilities), the allocation of new resources to address City Council and community priorities, and subsidies and loans to the Pier Fund and Beach Fund.

Where does the money come from in FY 2023-24?
Where does the money go?
FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
Local Taxes

72.5%
Charges for
Services

12.2%
Fines / Licenses /
Permits

11.4%
investments /
Rents

2.5%
All Other

1.4%
Public Safety
(Fire/Police)
38%
Public
Works

11.8%
Non-Departmental
13%
internal
Services

14.2%
Capital
improvements

3.1%
Community
Development

4.3%
Housing &
Community
Services

7.5%
Library

2.5%
Mobility &
Parking

5.6%

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 41 FY 2024-25 GENERAL FUND REVENUES: $451.9 MILLION;
EXPENDITURES: $458.6 MILLION
Total FY 2024-25 General Fund revenues are projected to be $451.9 million, which is $13.2 million, or 3.0% more than in FY 2023-24. The General Fund Operating Expenditure Budget for FY 2024-25 is $443.6 million and Capital Improvement Projects add $15.0 million, for a total General Fund budget of $458.6 million. Operating expenditures increase $20.2 million, or 4.8% over the FY 2023-24 budget. The increase primarily reflects annual cost of living increases on employee compensation and benefits and projected increases for operating expenditures (including insurance, gas and utilities), and subsidies and loans to the Pier Fund and Beach Fund. Funds set-aside in the General Fund reserve as working capital will be used to close the gap between revenues and expenditures. The gap is due to short-term hotel closures impacting transient occupancy taxes, as well as some short-term economic weakness that is impacting revenue recovery.

Where does the money come from in FY 2024-25?
Where does the money go?
FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
Local Taxes

71.9%
Fines /
Licenses /
Permits

11.2%
investments /
Rents

2.7%
Charges for
Services

12.1%
All Other

2.1%
Public Safety
(Fire/Police)

37.6%
Public Works
12%
internal
Services

14.3%
Capital
improvements

3.3%
Community
Development

4.2%
Housing &
Community
Services

7.3%
Library
Mobility & 2.5%
Parking

5.6%
Non-Departmental

13.2%

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 42 OTHER FUNDS
In addition to the General Fund, the City budget includes a number of funds that are either self-sustaining or require assistance (subsidies or loans) from the General Fund, as projected upon completion of five-year financial forecasts for all funds.

The Water and Wastewater Funds will maintain positive balances through the five-year forecast period.

With Council-approved outside financing, these funds are making progress on a number of projects that will increase locally sourced water supply and reduce the City’s reliance on imported water. The projects support Groundwater Well Improvements, Advanced Metering Infrastructure (AMI), and the Arcadia Water Treatment Plant Expansion Project in the Water Fund and the Sustainable Water Infrastructure Project (SWIP) in the Wastewater Fund. Historically, imported water has cost as much as 30% more than local water. By continuing to invest in local water supply, the City diversifies and enhances its drought resiliency and provides long-term cost savings and cost certainty for the community. Per best practices, staff will conduct the regular 5-year Water and Wastewater rate study in FY 2023-24 to align rates with the projected costs to provide water service. Rate adjustment recommendations will be presented to Council at the conclusion of the study.

The Resource Recovery and Recycling (RRR) Fund will remain self-sufficient through FY 2023-24, partially attributed to the infusion of one-time funds from the closeout of old construction and demolition projects.

Subject to proposed rate increases being adopted by the City Council, the proposed FY 2023-25 Biennial Budget includes the addition of 15.12 FTE permanent positions to address service gaps in the collection of solid waste, street sweeping, and compliance with the State’s Short-Lived Pollutants Act SB 1383 and the City’s corresponding mandatory organics ordinance adopted in November 2021. To maintain a balanced budget and address operational and capital needs, the Fund would require rate increases as recommended to Council on February 28, 2023, with the new rates anticipated to be approved and adopted on June 13, 2023, and effective in August 2023.

If approved, the recommended rate adjustments would generate sufficient revenues to maintain a positive fund balance throughout the forecast period and allow the fund to rebuild reserves.

The Department of Transportation’s (DOT) Big Blue Bus (BBB) Fund biennial budget reflects the department’s commitment and proactive response to the ever-changing transportation landscape. Over the biennial period, the department will continue to make intentional and strategic investments which include the restoration of service to pre-pandemic levels, increasing system-wide safety for transit riders and front-line staff and enhancing recruitment and retention efforts in response to the national shortage of Motor Coach Operators. The department will also engage in a comprehensive operational analysis to ensure improvements to Big Blue Bus routes and service delivery to the public. DOT will make notable progress in the electrification of its fleet by procuring fifteen battery electric buses which will expand its zero-emissions buses to 17.4% of the total fleet. BBB will continue to maintain a balanced budget over the forecast period through the use of one-time federal stimulus funds allocated to transit operators in response to the adverse impact of the pandemic on ridership and transit operations.

The Airport Fund will generate adequate revenues to sustain its operations throughout the five-year forecast period. The biennial budget includes several capital improvement projects planned for FY 2023-24 and FY 2024-25, including Parking and Airfield pavement maintenance and building and facility improvements to enhance lease revenue opportunities. By the vote of the City Council, Airport closure is planned for all aircraft operations after December 31, 2028.

FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 43 FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
The Community Broadband Fund will be incorporated into the General Fund, effective July 1, 2023.

The Beach Recreation Fund which supports Beach and Beach House operations, is projecting a structural deficit during the forecast period. The fund was impacted by pandemic closures and required prior year advances from the General Fund and a loan from the Special Revenue Source Fund. The primary revenue source for the Beach Fund is parking revenues, which returned to pre-COVID levels in FY 2021-22. However, growth in parking revenues are projected to remain relatively flat through the forecast period as future parking rate increases are dependent on California Coastal Commission (CCC) approvals, a pre-requisite for implementing rate increases. Staff continues to seek efficiencies and revenue generating opportunities to support unfunded capital expenditures and address the structural deficit. However, over $5 million in identified capital projects remain unfunded and it is projected that the fund will require General Fund loans of $14.4 million over the forecast period if a parking rate increase is not implemented. Furthermore, while exact impacts are not yet fully known, Beach parking revenues will be further impacted beginning in FY 2025-26 for construction staging related to the Pier Bridge Replacement project; up to one-third of the adjacent Beach parking lot may be impacted for two years. Every effort will be made to minimize the extent of the impact.

The Cemetery Fund will maintain a positive fund balance throughout the five-year forecast period. Although the inventory for plots is expected to be depleted by FY 2029-30, staff continues to assess overall Cemetery operations, projected plot sales, and reconfiguration and development of the Cemetery area in order to extend inventory and maintain fiscal sustainability.

The Housing Authority Fund is stable and will maintain a positive fund balance throughout the forecast period.

The additional administrative funding provided through the CARES Act for the Santa Monica Housing Authority in FY 2021-22 supplemented traditional Section 8 administrative funding. This allowed the fund to build an administrative cash reserve and to ensure a positive fiscal outlook through the five-year forecast window.

The Pier Fund was severely impacted by the pandemic and is reliant on General Fund subsidies to maintain a positive fund balance. The primary revenue sources for the Pier Fund are lease payments and parking income. The forecast reflects recovery to pre-pandemic levels for lease revenues as of FY 2022-23. The Pier Deck parking lot closed to vehicles in the Spring of 2020 and did not re-open until December 2022 for Monday through Thursday only. In the first four months that the Pier Deck parking lot has been open, it has generated approximately onethird of the revenues that it generated for the same period pre-pandemic. Given the uncertainty of full reopening and the limited data currently available, it is difficult to project when parking revenues will return to previous levels. Additionally, the City is in the planning stages of the Pier Bridge Replacement (funded through the Caltrans Highway Bridge Program), which will impact parking revenues once construction begins in FY 2026-27, as access to the Pier Deck parking lot will be impacted. Staff continues to seek efficiencies and revenue generating opportunities to support unfunded capital expenditures and address the structural deficit. However, the Capital Budget includes over $20 million in unfunded Pier projects and it is projected that the fund will require General Fund subsidies of $5-10 million over the forecast period depending on how quickly parking revenues return to prepandemic levels.

The Stormwater Management Fund receives revenues primarily from user fees and the Special Revenue Source Fund receives revenue from various sources, which are restricted and committed for specific uses. Both of these funds will generate adequate revenues to remain sustainable throughout the forecast period.

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BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW
The Vehicle Management Fund and Information Technology Replacement & Services Fund will maintain positive balances through the forecast period. However, to maintain a positive balance, the Funds have had to defer scheduled replacement and maintenance of equipment, primarily due to a two-year suspension/ reduction in FY 2020-21 and FY 2021-22 in funding from the General Fund associated with revenue shortfalls from the pandemic. In the Vehicle Management Fund, the suspension totaled $8.8 million and resulted in the majority of the 227 vehicles scheduled for replacement to be deferred to FY 2022-23 and beyond. In the Information Technology Replacement & Services Fund, the suspension totaled $3.4 million and resulted in the deferment of all computer equipment replacements for two years beyond their scheduled replacement. This is not sustainable, and funding needs to be restored. As General Fund revenues continue to gradually improve, funds are being earmarked to immediately address areas that cannot withstand the replacement timing lag and to gradually resume the replacement schedules. The General Fund will begin partial repayment to the Information Technology Replacement & Services Fund over three years beginning in FY 2025-26.

CITYWIDE TOTAL COMPENSATION
When determining total compensation, the City includes employee salaries, pension contributions, health care and workers’ compensation costs. These items make up approximately 56% of the City’s overall operating budget, and approximately 68% of the General Fund operating budget. Healthcare costs make up approximately 10% of the total budgeted compensation. Pension costs make up 19% of the total budgeted compensation. Workers’ compensation costs, which are not a negotiated benefit but are largely driven by State mandates, make up 3% of total budgeted compensation. Further discussion of pension costs follows. To accommodate healthcare, pension, and workers’ compensation costs, cost of living adjustments (COLA) for employees consider the total compensation package and not just salary.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 45 FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - CITYWIDE BUDGET OVERVIEW

PENSION CONTRIBUTIONS
The City’s defined benefit pension plan, Santa Monica Public Employees’ Retirement Plan, provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. The plan is part of the Public Agency portion of the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. Active full-time employees in the plan reimburse the City for a portion of the costs. The overall level of annual contributions by City employees, using negotiated contribution levels as of June 30, 2022, is approximately 24% of the total annual cost of pensions, while the percent contributed varies by plan (Police sworn, Fire sworn, Miscellaneous employee) and the length of time an employee has been with the City (Miscellaneous employees hired before July 2012 and public safety employees hired before January 2013 receive a higher benefit but pay between 18%-26% of the pension cost, while all other employees receive a lower pension benefit and pay 18%- 21% of the annual pension cost).

Detail of gross projected pension plan costs for FY 2023-24, offset by employee reimbursements, is outlined below.

FY 2023-24
Budget
(in millions)
% of Operating
Budget
FY 2024-25
Budget Plan (in
millions)
% of Operating
Budget
General Fund
Gross Pension Cost $76.0 $76.8
Employee Contributions 17.7 14.4
Net Pension Cost to the City $58.3 13.8% $62.4 14.1%
All Other Funds
Gross Pension Cost $21.1 $22.5
Employee Contributions 5.2 5.4
Net Pension Cost to the City $15.8 5.6% $17.1 5.9%
Total Gross Pension Cost $97.1 $99.3
Total Employee Contributions 22.9 19.8
Total Net Pension Cost to the City $74.1 10.5% $79.5 10.8%

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BUDGET OVERVIEW - MAJOR GENERAL FUND TAX BASE PROJECTIONS Local taxes represent approximately 73% of projected General Fund revenues for FY 2023-24. Five of these tax sources, Transient Occupancy Taxes (TOT), Sales Taxes, Property
Taxes, Utility Users Taxes (UUT), and Business License Taxes, account for $296 million out of the $318 million in local taxes projected to be received in the next fiscal year. The remaining tax revenues are from Parking Facility Taxes, Real Property Transfer Taxes, Vehicle License Fees, and Condominium Taxes.

The projections reflect a prudent approach to forecasting using standard methodologies such as trend analysis, known extraordinary circumstances, fiscal impacts of legislative changes, outside consultant forecasts, and professional judgment. The projections reflect a strong recovery from the devastating economic impact of the COVID-19 pandemic.

Overall, General Fund revenues returned to pre-pandemic levels by the end of FY 2021-22, quicker than anticipated. However, an uncertain economic outlook due to high inflation, continuing supply chain disruptions, and the impact of the continuing war in Ukraine is reflected in a softening of tax revenue projections over the next two years. Additionally, as is always the case, other unknown variables such as the depth of the expected economic downturn and unforeseen state legislative changes could affect the ultimate amount of taxes received.

PROPERTY TAXES — 19% OF GENERAL FUND REVENUES
Total assessed values in the City increased 6.1% in FY 2022-23, essentially the same as the annual average increase over the last five years. At this point, it appears that the pandemic did not have a significant impact on assessed values in Santa Monica. However, it is projected that assessed value increases will slow, particularly over the next two years (about 2.7% annually) before returning to a more moderate level of about 4% annually.

Revenue from unsecured property taxes (personal property and airplanes) is projected to remain relatively flat throughout the next few years, as are delinquent tax receipts. Supplemental taxes peaked in FY 2020-21 and are expected to moderate in future years. Additionally, the City will continue to receive residual and pass-through payments from Redevelopment Property Tax Trust Funds (RPTTF) due to the dissolution of Redevelopment over ten years ago.

All Other Non-Tax
27%
Property Taxes
Sales and 19%
Use Taxes
18%
Transient Occupancy
Taxes
16%
Utility Users
Taxes
8%
Business
License Taxes
7%
Parking
Facility Taxes
3%
Real Property
Transfer Taxes
2%

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 47 SALES TAXES — 18% OF GENERAL FUND REVENUES
Total sales taxes include the standard “Bradley Burns” 1% allocation of taxable sales that all cities receive as well as the Transaction and Use Tax (TUT), approved at one-half percent by Santa Monica voters in 2010 (Measure Y) and increased to 1% in November 2016 per ballot Measure GSH. Half of the TUT is paid to the Santa Monica/ Malibu Unified School District per a Master Facility Use agreement, following advisory measures approved by Santa Monica voters in 2010 and 2016, and another 25% is set aside for affordable housing uses following the 2016 advisory measure. However, this housing set aside was temporarily suspended during the pandemic-induced economic downturn. Sales tax revenues recovered faster than anticipated largely due to strength in the auto and hospitality sectors of the economy, and essentially returned to pre-COVID levels by FY 2021-22. However, a softening economy is anticipated to result in revenues showing essentially no growth in FY 2023-24 before resuming a more normal growth pattern of about 3% annually beginning in FY 2024-25.

TRANSIENT OCCUPANCY TAXES — 16% OF GENERAL FUND REVENUES Forecasts for Transient Occupancy Taxes (TOT) have been developed in coordination with Santa Monica Travel and Tourism. Tourism has experienced a strong recovery after being devastated by the pandemic when taxes fell by nearly 70%. While occupancy rates are still below pre-pandemic levels as international and business travel recovery is lagging the recovery in domestic travel, room rates have exceeded pre-COVID rates resulting in revenues returning to pre-pandemic levels. Additionally, Measure CS, passed by Santa Monica voters in November 2022, increased the tax rate from 14% for all lodging types to 15% for hotels/motels and 17% for homeshares effective March 1, 2023. This is expected to generate approximately $5 million annually in additional taxes.

Although the recovery is expected to continue, revenues are being impacted by the temporary closure of several major hotels for renovations over the next several years, and a slowing economy might also have an impact.

UTILITY USERS TAXES — 8% OF GENERAL FUND REVENUES
Tax revenue growth from electric, gas, and cable television utilities is primarily driven by rate changes by Southern California Edison, Southern California Gas Company, Spectrum, and Frontier Communications, respectively. Taxes from water and wastewater services reflect Council-approved utility rates as well as anticipated consumption patterns. Taxes from electricity and natural gas, after spiking in FY 2022-23 due to sharp increases in energy costs, are expected to flatten or decrease beginning in FY 2023-24. Overall, Utility Users Taxes are projected to increase just under 2% annually as increases from water and wastewater scheduled rate increases are projected to be partially offset by continuing decreases in taxes from hardwire and wireless telecommunications services, reflecting a shift of consumer use to more internet-based, non-taxable services. Taxes from other utilities are expected to remain relatively flat after the slight decrease in FY 2023-24.

FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - MAJOR GENERAL FUND TAX BASE PROJECTIONS

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 48 BUSINESS LICENSE TAXES — 7% OF GENERAL FUND REVENUES Due to the reporting period for Business License Taxes, fiscal year revenues are based on businesses’ prior calendar year gross receipts. Therefore, the major impact from the pandemic was realized in FY 2021-22 when a decrease of over 13% from pre-COVID highs was realized. The strong rebound in economic activity from pandemic lows resulted in an estimated increase in FY 2022-23 revenues of 7.5%. However, the expected economic softening is projected to result in lower growth rates over the next two years, and, revenues, while approaching historical trend growth rates thereafter, are not expected to exceed pre-pandemic levels until FY 2026-27.

PARKING FACILITY TAXES — 3% OF GENERAL FUND REVENUES
Parking revenues were among the hardest hit City revenue sources during the pandemic, and while they have recovered strongly, the recovery has not been as rapid as is the case for most other revenue sources. While parking taxes are projected to increase over the next two years, pre-pandemic levels are not expected to be reached in the foreseeable future. The current revenue projections do not include the impact of any potential parking rate increases.

REAL PROPERTY (DOCUMENTARY) TRANSFER TAXES — 2% OF GENERAL FUND

REVENUES
Real Property (Documentary) Transfer Tax revenues are very volatile, economy driven and can be skewed by very large-value transfers. The real estate market continued to exhibit strength during the pandemic as the number of annual property transfers, after dipping slightly at the onset of the pandemic, increased sharply the last two fiscal years. However, consistent with the softening economy, the volume of transfers has dropped sharply, down 37% through the first eight months of FY 2022-23, and tax receipts have shown a similar pattern, down 24% over the same time period. The impact of Measure GS, approved by the voters in November 2022, added a third tier of the tax at $56 per $1,000 sale value for transfers $8 million and above and cannot be determined at this time.

The new tier went into effect March 1, 2023, and revenues from the increase will be deposited into the Special Revenue Source Fund as they are restricted as to use.

FY 2023-25 PROPOSED BIENNIAL BUDGET

BUDGET OVERVIEW - MAJOR GENERAL FUND TAX BASE PROJECTIONS

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) FY 2023-25 PROPOSED BIENNIAL BUDGET

FUND BALANCES

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FUND BALANCES - CLASSIFICATION OF FUNDS
The financial operations of the City are organized into funds for which budgets are prepared.

These funds are grouped into three major categories: General, Special Revenue, and Proprietary.

This section includes a description of the funds and their fund balance projections for the two budget years.

THE GENERAL FUND
The General Fund is used to account for all financial resources necessary to carry out basic governmental activities of the City that are not accounted for in another fund. The General Fund supports essential City services such as police and fire protection, street maintenance, libraries, parks, and open space management. Most of the General Fund is financed from tax revenues.

CAPITAL PROJECTS AND SPECIAL REVENUE FUNDS
Capital Projects and Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes.
• Asset Seizure Fund (21) — To account for the receipt and expenditure of federal and state asset forfeiture funds from equitable sharing programs. The federal guideline disallows a grantee to supplant its budget with asset seizure funds.
• Beach Recreation Fund (11) — To account for beach parking, concession, and beach house revenues and expenditures related to beach maintenance and recreation activities. • Citizens Option for Public Safety (COPS) Fund (22) — To account for the receipt and expenditure of the Citizens Option for Public Safety program established by AB3229 of 1996. In addition to disallowing a grantee to use the funds to supplant its budget, the State guideline requires a public hearing for the use of funds. Appropriations are recommended to the Council by a separate staff report after the hearing is conducted.
• Clean Beaches and Ocean Parcel Tax Fund (16) — To account for activity related to implementation of Watershed Management Plan and the passage of Measure V in November 2006. • Community Development Block Grant (CDBG) Fund (19) — To account for Federal entitlements under the Housing and Community Development Act of 1974, as amended. The City Council annually allocates CDBG funds to various programs.
• Gas Tax Fund (26) — To account for State and County gasoline tax allocations and any Federal funds provided to the City for street-related purposes.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 50 • Housing Authority Fund (12) — To account for the receipt and expenditure of federal funds related to housing programs.
• Local Return Fund (27) — To account for revenues and expenditures from the Proposition A, Proposition C and Measure R Local Return programs, three one-half cent sales tax measures approved by Los Angeles County voters to finance a countywide transit development program. • Low- and Moderate-Income Housing Asset Fund (41) — To account for the revenues and expenditures formerly in the Low- and Moderate-Income Housing Fund established under Community Redevelopment law.
• Miscellaneous Grants Fund (20) — To account for the receipt and expenditure of miscellaneous Federal, State and County awarded grants and special allocations provided to the City. • Parks and Recreation Fund (28) — To account for funds collected under the City's Unit Dwelling Tax.

These funds are to be used for the acquisition, improvement, and expansion of public parks, playgrounds, and recreational facilities.
• Rent Control Fund (25) — To account for revenues and expenditures of the Rent Control Board. Though included in the Annual Comprehensive Financial Report, the fund is not discussed in this document, as the budget is prepared separately for the Rent Control Board’s adoption. • South Coast Air Quality Management District (SCAQMD) Fund (18) — To account for the receipt of Air Quality Management District funds and eligible expenditures. • Special Revenue Source Fund (10) — To account for receipt and expenditure of monies restricted, committed or assigned for specific use.
• Tenant Ownership Rights Charter Amendment (TORCA) Fund (14) — To account for filing fee and conversion tax revenues and expenditures related to various housing programs authorized by Chapter XX of the City Charter.

PROPRIETARY (ENTERPRISE AND INTERNAL SERVICE) FUNDS
Proprietary (Enterprise and Internal Service) Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where (a) the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public or City departments on a continuing basis be financed or recovered primarily through user charges, or (b) the City has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. • Airport Fund (57) — To account for revenues and expenses connected with management of the Santa Monica Municipal Airport.

FY 2023-25 PROPOSED BIENNIAL BUDGET

FUND BALANCES - CLASSIFICATION OF FUNDS

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 51 • Big Blue Bus (BBB) Fund (60) — To account for revenues and expenses related to operation of the City's municipal bus lines.
• Cemetery Fund (59) — To account for revenues and expenses associated with operation of Woodlawn Cemetery.
• Community Broadband Fund (55) — To account for revenues and expenses related to the City’s dark and lit fiber services. Effective FY 2023-24, the Community Broadband Fund (55) will be consolidated into the General Fund (01).
• Information Technology Replacement and Services Fund (71) — To account for user charges from other funds and expenses related to replacement of computer and telecommunication equipment. • Parking Authority Fund (61) — The Parking Authority is a financing authority for the City's parking structures.
• Pier Fund (53) — To account for revenues and expenses connected with management and development of the Santa Monica Pier.
• Resource Recovery and Recycling (RRR) Fund (54) — To account for revenues and expenses of operating the City's refuse collection, street sweeping and cleaning, and recycling programs. • Self-insurance, Bus Fund (73) — To account for contributions from the Big Blue Bus Fund and expenses related to the administration and payment of bus-related liability claims. • Self-insurance, General Liability and Auto Fund (72) — To account for user charges from other funds and expenses related to the administration and payment of general liability and auto claims. • Self-insurance, Risk Management Administration Fund (74) — To account for user charges from other funds and expenses related to the administration of the Risk Management Division. • Self-insurance, Workers’ Compensation Fund (75) — To account for contributions from City Departments for administration and payment of workers' compensation claims. • Stormwater Management Fund (52) — To account for revenues and expenses associated with stormwater management.
• Vehicle Management Fund (70) — To account for user charges from other funds and expenses related to replacement, maintenance and fueling of City owned vehicles, including specialized mechanical equipment.
• Wastewater Fund (51) — To account for revenues and expenses associated with maintaining the sanitary sewer and storm drain systems within the City. • Water Fund (50) — To account for revenues and expenses of providing water service.

FY 2023-25 PROPOSED BIENNIAL BUDGET

FUND BALANCES - CLASSIFICATION OF FUNDS

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 52 Three other fund types that are included in the City’s Annual Comprehensive Financial Report are not budgeted for various reasons:

FIDUCIARY FUNDS
Fiduciary Funds are used to account for resources held for the benefit of parties outside the City. The fund resources are not available to support City programs and therefore they are not budgeted. • General Trust Fund (80) — To account for payroll withholding due State and Federal agencies, Environmental Impact Report (EIR) monies deposited by developers and other resources held in trust for the benefit of parties outside the City.
• Private Purpose Trust Fund (43) — To account for the distribution of assets of the dissolved Redevelopment Agency of the City of Santa Monica.
• Street Light Fund (83) — To account for collected payments of street assessments.

PERMANENT FUNDS
Permanent Funds, which consist of Cemetery Perpetual Care (81) Fund and Mausoleum Perpetual Care (82) Fund, are used to report resources that reflect only earnings, not principal, to be used for City programs. Earnings from these two funds are transferred to the Cemetery Fund to support the cemetery operations. While the two perpetual care funds are not budgeted, the Cemetery Fund budgets the transfer amounts.

DEBT SERVICE FUND
Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

FY 2023-25 PROPOSED BIENNIAL BUDGET

FUND BALANCES - CLASSIFICATION OF FUNDS

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FUND BALANCES - FUND BALANCE PROJECTIONS
The following section shows fund balance projections for each year of the biennial budget in the three major categories: General Fund, Special Revenue funds, and Proprietary (Enterprise and Internal Service) funds. Funds are budgeted to maintain a positive balance on a yearly basis. In the cases where budgeted expenditures exceed revenues, this indicates one-time capital projects where expenditures are funded from prior years’ revenue held in reserve for this purpose, except in the case of the Housing Authority, which requires a transfer of funds from the Special Revenue Source Fund.

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FUND BALANCES - FUND BALANCE PROJECTIONS (FY 2023-24)
Fund Category/Type
6/30/2023
Projected
Ending
Fund Balance
FY 2023-24
Budgeted
Revenues
FY 2023-24
Budgeted
Expenditures
Operating
Transfers /
Use of
Reserves
6/30/2024
Projected
Ending
Fund Balance Change $
Change
%
General a $ 4,880,702 $ 438,689,358 $ (436,874,538) $ - $ 6,695,522 $ 1,814,820 37.2% Beach Recreation b - 16,767,189 (15,917,291) - 849,898 849,898 N/A Citizens' Option for Public Safety 720,463 225,000 (106,955) - 838,508 118,045 16.4% Clean Beaches / Ocean Parcel Tax 12,145,321 4,602,895 (8,837,297) - 7,910,919 (4,234,402) -34.9% CDBG c - 1,533,710 (1,544,499) 10,789 - - N/A
Gas Tax 250,325 4,957,637 (4,932,472) - 275,490 25,165 10.1% Housing Authority 2,657,950 29,214,740 (29,838,470) - 2,034,220 (623,730) -23.5% Local Return c - 8,628,542 (10,151,567) 1,523,025 - - N/A Low/Moderate Income Housing Asset 13,711,210 500,000 (389,364) - 13,821,846 110,636 0.8% Miscellaneous Grants c - 7,619,388 (7,972,967) 353,579 - - N/A Parks and Recreation Facilities - 3,000 - - 3,000 3,000 N/A SCAQMD AB2766 381,385 129,000 (112,000) - 398,385 17,000 4.5% Special Revenue Source 85,775,767 4,714,177 1,433,635 - 91,923,579 6,147,812 7.2% TORCA 1,210,582 185,000 (122,592) - 1,272,990 62,408 5.2% Airport 11,008,577 18,703,994 (19,228,795) - 10,483,776 (524,801) -4.8% Big Blue Bus 116,978,293 111,567,424 (110,790,082) - 117,755,634 777,341 0.7% Cemetery 2,940,530 2,389,760 (2,377,840) - 2,952,450 11,920 0.4% Parking Authority 100,335 40,000 (900) - 139,435 39,100 39.0% Pier d 4,603,465 8,786,676 (12,047,957) - 1,342,184 (3,261,281) -70.8% Resource Recovery and Recycling 14,966,889 35,003,605 (37,387,491) - 12,583,003 (2,383,886) -15.9% Stormwater Management e 1,859,213 2,126,858 (1,338,092) (400,000) 2,247,979 388,766 20.9% Wastewater f 31,283,071 24,311,954 (23,693,597) (2,892,931) 29,008,497 (2,274,574) -7.3% Water g 11,043,343 51,729,641 (46,636,852) (875,892) 15,260,240 4,216,897 38.2%

ENTERPRISE FUNDS

GENERAL FUND

SPECIAL REVENUE FUNDS
FUND BALANCE PROJECTIONS FY 2023-24

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FUND BALANCES - FUND BALANCE PROJECTIONS (FY 2023-24)
Fund Category/Type
6/30/2023
Projected
Ending
Fund Balance
FY 2023-24
Budgeted
Revenues
FY 2023-24
Budgeted
Expenditures
Operating
Transfers /
Use of
Reserves
6/30/2024
Projected
Ending
Fund Balance Change $
Change
%
FUND BALANCE PROJECTIONS FY 2023-24
Info Tech Replacement and Services 818,806 2,516,447 (2,895,400) - 439,853 (378,953) -46.3% Self-Insurance, Bus 7,524,992 4,470,000 (4,709,930) - 7,285,062 (239,930) -3.2% Self-Insurance, General / Auto Liability 10,880,032 12,355,000 (8,682,233) - 14,552,799 3,672,767 33.8% Self-Insurance, Risk Management Admin 1,774,479 6,113,500 (5,418,095) - 2,469,884 695,405 39.2% Self-Insurance, Workers' Compensation 62,527,924 14,270,000 (15,526,658) - 61,271,266 (1,256,658) -2.0% Vehicle Management h $ 7,837,237 $ 19,013,800 $ (18,796,456) $ (107,500) $ 7,947,081 $ 109,844 1.4% Total All Funds $ 407,880,890 $ 831,168,295 $ (824,896,755) $ (2,388,930) $ 411,763,500 $ 3,882,610 1.0%

INTERNAL SERVICE FUNDS
c. The CDBG (19), Miscellaneous Grants (20) and Local Return (27) funds revenues and expenditures do not consistently balance on an annual basis due to receipt of federal funding and grant timing.
f. The Wastewater (51) Fund reflects payment of debt service to the Clean Water State Revolving Fund for the Sustainable Water Infrastructure Project. h. The Vehicle Management (70) Fund transfer reflects the set aside of funds to reserves to support future fuel station replacement. b. The Beach Recreation (11) Fund reflects a $2.7 million advance/loan from the General (01) Fund, which is included in the budgeted expenditures. Depending on actual spending, General Fund support may be less than projected. d. The Pier (53) Fund June 30, 2023 projected ending funding balance includes an anticipated subsidy of working capital from the General fund that is in addition to the budgeted $0.2 million subsidy. Depending on actual spending, General Fund support may be less than projected. e. The Stormwater Management (52) Fund includes a transfer to set aside funds in reserves to support future capital projects. g. The Water (50) Fund reflects payment of debt service on the Water Revenue Bond partially offset by the use of Gillette Boeing Settlement reserves to fund capital water projects.
a. The General (01) Fund June 30, 2023 projected ending fund balance reflects working capital that is anticipated to be needed during the biennial budget period.

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FUND BALANCES - FUND BALANCE PROJECTIONS (FY 2024-25)
Fund Category/Type
6/30/2024
Projected
Ending
Fund Balance
FY 2024-25
Budgeted
Revenues
FY 2024-25
Budgeted
Expenditures
Operating
Transfers /
Use of
Reserves
6/30/2025
Projected
Ending
Fund Balance Change $
Change
%
General $ 6,695,522 $ 451,899,443 $ (458,594,965) $ - $ - $ (6,695,522) -100.0% Beach Recreation a 849,898 17,140,589 (17,255,716) 734,771 - (115,127) -13.5% Citizens' Option for Public Safety 838,508 225,000 (109,094) 954,414 - 115,906 13.8% Clean Beaches / Ocean Parcel Tax 7,910,919 4,676,211 (12,673,150) 86,020 - (7,910,919) -100.0% CDBG b 1,199,558 - (452,289) 747,269 - 747,269 N/A
Gas Tax 275,490 5,173,328 (4,688,969) 759,849 - 484,359 175.8% Housing Authority 2,034,220 30,242,658 (30,440,595) 1,836,283 - (197,937) -9.7% Local Return b 7,743,736 - (7,076,456) 667,280 - 667,280 N/A Low/Moderate Income Housing Asset 13,821,846 500,000 (389,364) 13,932,482 - 110,636 0.8% Miscellaneous Grants b 3,445,573 - (1,091,092) 2,354,481 - 2,354,481 N/A Parks and Recreation Facilities 3,000 3,000 - - 6,000 100.0% 3,000 SCAQMD AB2766 398,385 129,000 - 527,385 - 129,000 32.4% Special Revenue Source 91,923,579 4,814,177 874,154 97,611,910 - 5,688,331 6.2% TORCA 1,272,990 185,000 (122,714) 1,335,276 -
62,286 4.9%
Airport 10,483,776 20,364,117 (24,611,196) 6,236,697 - (4,247,079) -40.5% Big Blue Bus c 117,755,634 124,557,283 (94,138,266) (16,655,860) 131,518,791 13,763,157 11.7% Cemetery 2,952,450 2,468,560 (2,335,894) 3,085,116 - 132,666 4.5% Parking Authority 139,435 40,000 (900) 178,535 - 39,100 28.0% Pier d 1,342,184 8,870,002 (10,212,186) - - (1,342,184) -100.0% Resource Recovery and Recycling 12,583,003 39,413,352 (38,858,661) 13,137,694 - 554,691 4.4% Stormwater Management e 2,247,979 2,126,858 (1,431,365) (400,000) 2,543,472 295,493 13.1% Wastewater f 29,008,497 27,095,343 (25,892,349) (2,935,733) 27,275,758 (1,732,739) -6.0% Water g 15,260,240 55,680,506 (50,117,447) (2,304,049)
18,519,250 3,259,010 21.4%
FUND BALANCE PROJECTIONS FY 2024-25

GENERAL FUND

SPECIAL REVENUE FUNDS

ENTERPRISE FUNDS

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 57 FY 2023-25 PROPOSED BIENNIAL BUDGET
FUND BALANCES - FUND BALANCE PROJECTIONS (FY 2024-25)
Fund Category/Type
6/30/2024
Projected
Ending
Fund Balance
FY 2024-25
Budgeted
Revenues
FY 2024-25
Budgeted
Expenditures
Operating
Transfers /
Use of
Reserves
6/30/2025
Projected
Ending
Fund Balance Change $
Change
%
FUND BALANCE PROJECTIONS FY 2024-25
Info Tech Replacement and Services 439,853 2,516,447 (2,956,300) - - (439,853) -100.0% Self-Insurance, Bus 7,285,062 4,270,000 (5,391,090) 6,163,972 - (1,121,090) -15.4% Self-Insurance, General / Auto Liability 14, 552,799 14,155,000 (10,094,358) 18,613,441 - 4,060,642 27.9% Self-Insurance, Risk Management Admin 2,469,884 7,123,900 (5,532,728) 4,061,056 - 1,591,172 64.4% Self-Insurance, Workers' Compensation 61,271,266 14,770,000 (15,961,548) 60,079,718 - (1,191,548) -1.9% Vehicle Management h $ 7,947,081 $ 19,269,770 $ (15,028,466) $ (107,500) $ 12,080,885 $ 4,133,804 52.0% Total All Funds 411,763,500 $ $ 870,098,411 $ (834,583,004) $ (22,317,122) $ 424,961,785 $ 13,198,285 3.2% g. The Water (50) Fund reflects payment of debt service on the Water Revenue Bond partially offset by the use of Gillette Boeing Settlement reserves to fund capital water projects.
h. The Vehicle Management (70) Fund transfer reflects the set aside of funds to reserves to support future fuel station replacement. b. The CDBG (19), Miscellaneous Grants (20) and Local Return (27) funds revenues and expenditures do not consistently balance on an annual basis due to receipt of federal funding and grant timing.
d. The Pier (53) fund reflects a $3.2 million subsidy from the General Fund, which is included in the budgeted expenditures. Depending on actual spending, General Fund support may be less than projected.
e. The Stormwater Management (52) Fund includes a transfer to set aside funds in reserves to support future capital projects. f. The Wastewater (51) Fund reflects transfer use reserves for payment of debt service to the Clean Water State Revolving Fund for the Sustainable Water Infrastructure Project.

INTERNAL SERVICE FUNDS
a. The Beach Recreation (11) Fund reflects a $2.6 million advance/loan from the General (01) Fund, which is included in the budgeted expenditures. Depending on actual spending, General Fund support may be less than projected. c. FY 2024-25 budgeted capital expenditures are subject to change due to potential changes in capital activity. Transfers reflected in this table serves as an adjustment related to additional capital expenditures that will be programmed as part of the FY 2024-26 Biennial Capital Improvement Program budget process.

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 58 FY 2023-25 PROPOSED BIENNIAL BUDGET
REVENUES - SUMMARY BY CATEGORY & FUND (FY 2023-24)
Fund Property
Taxes Sales Taxes Other Taxes Licenses & Permits
Fines and
Forfeitures
Charges for
Services
Investment /
Rent
Intergovernmental /
Grants
Other Budget Total
General $ 81,461,289 $ 77,695,000 $ 158,760,605 $ 36,567,610 $ 13,326,284 $ 53,570,626 $ 11,149,513 $ 1,538,961 $ 4,619,470 $ 438,689,358 Airport - - - - - 17,149,328 270,000 - 1,284,666 18,703,994 Beach Recreation - - - 123,250 - 14,138,207 1,335,862 37,379 1,132,491 16,767,189 Big Blue Bus - 86,448,120 - - - 10,135,248 - 11,436,615 3,547,441 111,567,424 Cemetery - - - - - 2,292,200 5,000 - 92,560 2,389,760
COPS - - - - - - 5,000 220,000 - 225,000
Clean Beaches &
Ocean Parcel Tax - - 3,660,172 - - - 130,000 812,723 - 4,602,895 CDBG - - - - - - 5,000 1,528,710 - 1,533,710
Gas Tax - - - - - - 18,000 4,939,637 - 4,957,637
Housing Authority - - - - - - - 29,214,740 - 29,214,740 Information Technology - - - - - 2,416,447 100,000 - - 2,516,447 Local Return - - - - - - - 8,628,542 - 8,628,542
Low & Moderate Income
Housing Asset - - - - - - 100,000 - 400,000 500,000
Misc. Grants - - - - - - - 7,584,388 35,000 7,619,388
Parking Authority - - - - - - 40,000 - - 40,000
Parks & Recreation - - - - - - 3,000 - - 3,000
Pier - - - - - 8,783,273 3,403 - - 8,786,676
Resources Recovery &
Recycling - - - - - 34,297,070 250,000 - 456,535 35,003,605 Self-insurance, Bus - - - - - 4,400,000 70,000 - - 4,470,000 Self-Insurance, General
Liability/Auto - - - - - 12,200,000 155,000 - - 12,355,000 Self-insurance, Risk
Management Admin - - - - - 6,113,500 - - - 6,113,500
Self-insurance, Workers'
Comp - - - - - 13,500,000 770,000 - - 14,270,000
SCAQMD - - - - - - 10,000 119,000 - 129,000
Special Revenue Source - - - - - 448,107 230,000 547,516 3,488,554 4,714,177 Stormwater - - - - - 1,706,858 20,000 - 400,000 2,126,858 TORCA - - 25,000 - - - 110,000 - 50,000 185,000
Vehicle Management - - - - - 18,421,200 440,000 - 152,600 19,013,800 Wastewater - - - - - 23,231,954 860,000 - 220,000 24,311,954 Water - - - - - 50,424,641 750,000 - 555,000 51,729,641 SUBTOTAL $ 81,461,289 $ 164,143,120 $ 162,445,777 $ 36,690,860 $ 13,326,284 $ 273,228,659 $ 16,829,778 $ 66,608,211 $ 16,434,317 $ 831,168,295 Reimbursements &
Transfers - - - - - (82,591,029) (1,433,025) - - (84,024,054) TOTAL $ 81,461,289 $ 164,143,120 $ 162,445,777 $ 36,690,860 $ 13,326,284 $ 190,637,630 $ 15,396,753 $ 66,608,211 $ 16,434,317 $ 747,144,241 FY 2023-24 REVENUE SUMMARY BY CATEGORY & FUND

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Packet Pg. 96
Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 59 FY 2023-25 PROPOSED BIENNIAL BUDGET
REVENUES - SUMMARY BY CATEGORY & FUND (FY 2024-25)
Fund Property
Taxes Sales Taxes Other Taxes Licenses & Permits
Fines and
Forfeitures
Charges for
Services
Investment /
Rent
Intergovernmental /
Grants
Other Budget Total
General $ 83,895,666 $ 79,888,000 $ 161,493,019 $ 37,211,527 $ 13,343,910 $ 54,549,709 $ 12,019,930 $ 2,276,801 $ 7,220,881 $ 451,899,443 Airport - - - - - 18,780,110 270,000 - 1,314,007 20,364,117 Beach Recreation - - - 123,250 - 14,260,841 1,579,062 38,127 1,139,309 17,140,589 Big Blue Bus - 88,239,078 - - - 10,750,333 - 21,919,372 3,648,500 124,557,283 Cemetery - - - - - 2,367,900 5,000 - 95,660 2,468,560
COPS - - - - - - 5,000 220,000 - 225,000
Clean Beaches &
Ocean Parcel Tax - - 3,733,376 - - - 130,000 812,835 - 4,676,211 CDBG - - - - - - 5,000 1,194,558 - 1,199,558
Gas Tax - - - - - - 18,000 5,155,328 - 5,173,328
Housing Authority - - - - - - - 30,242,658 - 30,242,658 Information Technology - - - - - 2,416,447 100,000 - - 2,516,447 Local Return - - - - - - - 7,743,736 - 7,743,736
Low & Moderate Income
Housing Asset - - - - - - 100,000 - 400,000 500,000
Misc. Grants - - - - - - - 3,410,573 35,000 3,445,573
Parking Authority - - - - - - 40,000 - - 40,000
Parks & Recreation - - - - - - 3,000 - - 3,000
Pier - - - - - 8,866,497 3,505 - - 8,870,002
Resources Recovery &
Recycling - - - - - 38,701,816 250,000 - 461,536 39,413,352 Self-insurance, Bus - - - - - 4,200,000 70,000 - - 4,270,000 Self-Insurance, General
Liability/Auto - - - - - 14,000,000 155,000 - - 14,155,000 Self-insurance, Risk
Management Admin - - - - - 7,123,900 - - - 7,123,900
Self-insurance, Workers'
Comp - - - - - 14,000,000 770,000 - - 14,770,000
SCAQMD - - - - - - 10,000 119,000 - 129,000
Special Revenue Source - - - - - 448,107 230,000 547,516 3,588,554 4,814,177 Stormwater - - - - - 1,706,858 20,000 - 400,000 2,126,858 TORCA - - 25,000 - - - 110,000 - 50,000 185,000
Vehicle Management - - - - - 18,679,070 440,000 - 150,700 19,269,770 Wastewater - - - - - 26,015,343 860,000 - 220,000 27,095,343 Water - - - - - 54,375,506 750,000 - 555,000 55,680,506 SUBTOTAL $ 83,895,666 $ 168,127,078 $ 165,251,395 $ 37,334,777 $ 13,343,910 $ 291,242,437 $ 17,943,497 $ 73,680,504 $ 19,279,147 $ 870,098,411 Reimbursements &
Transfers - - - - - (86,706,547) (1,433,025) - - (88,139,572) TOTAL $ 83,895,666 $ 168,127,078 $ 165,251,395 $ 37,334,777 $ 13,343,910 $ 204,535,890 $ 16,510,472 $ 73,680,504 $ 19,279,147 $ 781,958,839 FY 2024-25 REVENUE SUMMARY BY CATEGORY & FUND

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 60 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - FIVE-YEAR REVENUE SUMMARY
FY 2022-23 FY 2023-24 FY 2024-25
FY 2020-21 FY 2021-22 Revised Proposed Change Change Budget Fund/Revenue Category Actual Actual Budget Budget Amount Percent Plan Property Taxes $ 75,324,680 $ 75,980,972 $ 79,254,752 $ 81,461,289 $ 2,206,537 2.8% $ 83,895,666 Sales Taxes 64,301,901 76,698,693 77,971,800 77,695,000 (276,800) -0.4% 79,888,000 Other Local Taxes 98,955,859 157,399,065 154,052,530 158,760,605 4,708,075 3.1% 161,493,019 Licenses and Permits 25,963,474 35,337,524 35,129,456 36,567,610 1,438,154 4.1% 37,211,527 Fines and Forfeitures 7,779,861 12,262,875 13,381,964 13,326,284 (55,680) -0.4% 13,343,910 Charges for Service 36,793,794 43,100,868 47,055,049 53,570,626 6,515,577 13.8% 54,549,709 Investment (Interest) 9,372,127 1,174,433 2,600,000 2,900,000 300,000 11.5% 3,700,000 Rentals 5,291,570 6,578,878 7,828,021 8,249,513 421,492 5.4% 8,319,930 Intergovernmental 1,868,075 1,482,605 4,418,856 1,538,961 (2,879,895) -65.2% 2,276,801 Other 3,256,724 4,320,736 3,578,566 4,619,470 1,040,904 29.1% 7,220,881 Total General Fund 328,908,065 $ $ 414,336,650 $ 425,270,994 $ 438,689,358 $ 13,418,364 3.2% $ 451,899,443 Charges for Services $ 14,951,966 $ 16,508,884 $ 17,328,126 $ 17,149,328 $ (178,798) -1.0% $ 18,780,110 Investment (Interest) 385,038 160,525 270,000 270,000 0.0% - 270,000 Other 1,261,014 1,053,684 1,176,834 1,284,666 107,832 9.2% 1,314,007 Total Airport Fund 16,598,019 $ $ 17,723,093 $ 18,774,960 $ 18,703,994 $ (70,966) -0.4% $ 20,364,117 Investment (Interest) $ 22,074 $ 8,032 $ - $ - $ N/A - $ - Intergovernmental 154,472 282,386 - - N/A - -
Total Airport Fund 176,547 $ $ 290,418 $ - $ - $ N/A - $ - Licenses & Permits $ 71,617 $ 129,631 $ 123,250 $ 123,250 $ 0.0% - $ 123,250 Charges for Services 10,997,027 13,952,792 14,029,040 14,138,207 109,167 0.8% 14,260,841 Investment (Interest) 73,161 16,984 - - N/A - -
Rentals 841,816 1,436,692 1,335,862 1,335,862 0.0% - 1,579,062 Intergovernmental 50,873 28,899 28,899 37,379 29.3% 8,480 38,127 Other 748,435 1,342,959 782,795 1,132,491 349,696 44.7% 1,139,309 Total Beach Recreation Fund 12,782,930 $ $ 16,907,955 $ 16,299,846 $ 16,767,189 $ 467,343 2.9% $ 17,140,589

AIRPORT FUND

BEACH RECREATION FUND

FIVE-YEAR REVENUE SUMMARY
FY 2022-23 to FY 2023-24

GENERAL FUND

ASSET SEIZURE FUND

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 61 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - FIVE-YEAR REVENUE SUMMARY
FY 2022-23 FY 2023-24 FY 2024-25
FY 2020-21 FY 2021-22 Revised Proposed Change Change Budget Fund/Revenue Category Actual Actual Budget Budget Amount Percent Plan

FIVE-YEAR REVENUE SUMMARY
FY 2022-23 to FY 2023-24
Sales Taxes $ 39,666,655 $ 37,048,344 $ 74,101,950 $ 86,448,120 $ 12,346,170 16.7% $ 88,239,079 Charges for Services 3,426,680 9,551,395 9,647,112 10,135,248 488,136 5.1% 10,750,333 Investment (Interest) 589,421 85,761 - - N/A - -
Capital Grants 28,984,243 38,328,627 13,848,090 11,436,615 (2,411,475) -17.4% 21,919,372 Other 2,823,710 3,539,191 3,469,602 3,547,441 77,839 2.2% 3,648,500 Total Big Blue Bus Fund 75,490,709 $ $ 88,553,318 $ 101,066,754 $ 111,567,424 $ 10,500,670 10.4% $ 124,557,284 Charges for Services $ 2,443,202 $ 2,763,982 $ 1,963,912 $ 2,292,200 $ 328,288 16.7% $ 2,367,900 Investment (Interest) 21,381 10,987 5,000 5,000 0.0% - 5,000 Other 381,509 378,340 89,000 92,560 4.0% 3,560 95,660
Total Cemetery Fund 2,846,092 $ $ 3,153,309 $ 2,057,912 $ 2,389,760 $ 331,848 16.1% $ 2,468,560 Investment (Interest) $ 8,118 $ 2,874 $ 5,000 $ 5,000 $ 0.0% - $ 5,000 Intergovernmental 220,760 228,404 220,000 220,000 0.0% - 220,000 Total COPS Fund 228,878 $ $ 231,278 $ 225,000 $ 225,000 $ 0.0% - $ 225,000 Other Local Taxes $ 3,394,100 $ 3,466,243 $ 3,588,404 $ 3,660,172 $ 71,768 2.0% $ 3,733,376 Investment (Interest) 126,621 52,186 130,000 130,000 0.0% - 130,000 Intergovernmental 3,298,245 3,317,241 3,297,465 812,723 (2,484,742) -75.4% 812,835 Total Clean Bchs & Ocean Prcl Tax Fund 6,818,965 $ $ 6,835,669 $ 7,015,869 $ 4,602,895 $ (2,412,974) -34.4% $ 4,676,211 Charges for Services $ 3,299,401 $ 2,779,596 $ 2,567,375 $ - $ (2,567,375) -100.0% $ - Investment (Interest) 7,980 2,861 - - N/A - -
Total Community Broadband Fund 3,307,382 $ $ 2,782,457 $ 2,567,375 $ - $ (2,567,375) -100.0% $ - Investment (Interest) $ 291 $ 17 $ 5,000 $ 5,000 $ 0.0% - $ 5,000 Intergovernmental 2,465,110 1,324,848 1,235,326 1,528,710 293,384 23.7% 1,194,558 Total CDBG Fund 2,465,401 $ $ 1,324,865 $ 1,240,326 $ 1,533,710 $ 293,384 23.7% $ 1,199,558

COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) FUND

CEMETERY FUND

COMMUNITY BROADBAND FUND

CITIZENS' OPTION FOR PUBLIC SAFETY (COPS) FUND

CLEAN BEACHES & OCEAN PARCEL TAX FUND

BIG BLUE BUS FUND

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Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 62 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - FIVE-YEAR REVENUE SUMMARY
FY 2022-23 FY 2023-24 FY 2024-25
FY 2020-21 FY 2021-22 Revised Proposed Change Change Budget Fund/Revenue Category Actual Actual Budget Budget Amount Percent Plan

FIVE-YEAR REVENUE SUMMARY
FY 2022-23 to FY 2023-24
Investment (Interest) $ 51,551 $ 22,136 $ 18,000 $ 18,000 $ 0.0% - $ 18,000 Intergovernmental 3,711,636 3,893,161 4,597,728 4,939,637 341,909 7.4% 5,155,328 Total Gas Tax Fund 3,763,186 $ $ 3,915,297 $ 4,615,728 $ 4,957,637 $ 341,909 7.4% $ 5,173,328 Investment (Interest) $ 4,304 $ 3,630 $ - $ - $ N/A - $ - Intergovernmental 21,669,582 26,801,001 27,086,442 29,214,740 2,128,298 7.9% 30,242,658 Total Housing Authority Fund 21,673,886 $ $ 26,804,631 $ 27,086,442 $ 29,214,740 $ 2,128,298 7.9% $ 30,242,658 Charges for Services $ 439,967 $ 1,249,018 $ 2,416,421 $ 2,416,447 $ 0.0% 26 $ 2,416,447 Investment (Interest) 52,051 10,533 100,000 100,000 - 0.0% 100,000 Total Information Technology Fund 492,018 $ $ 1,259,551 $ 2,516,421 $ 2,516,447 $ 0.0% 26 $ 2,516,447 Investment (Interest) $ 195,318 $ 81,494 $ 150,000 $ - $ -100.0% (150,000) $ - Intergovernmental 5,484,185 6,783,792 6,325,938 8,628,542 2,302,604 36.4% 7,743,736 Total Local Return Fund 5,679,503 $ $ 6,865,285 $ 6,475,938 $ 8,628,542 $ 2,152,604 33.2% $ 7,743,736 Investment (Interest) $ 198,423 $ 72,999 $ 100,000 $ 100,000 $ 0.0% - $ 100,000 Other 377,623 366,367 400,000 400,000 0.0% - 400,000
Total Low & Mod. Housing Asset Fund 576,046 $ $ 439,366 $ 500,000 $ 500,000 $ 0.0% - $ 500,000 Investment (Interest) $ - $ - $ - $ - $ N/A - $ -
Intergovernmental $ 19,573,047 $ 22,052,957 $ 28,271,324 $ 7,584,388 $ (20,686,936) -73.2% 3,410,573 Other 5,000 3,000 289,178 35,000 (254,178) -87.9% 35,000 Total Misc. Grants Fund 19,578,047 $ $ 22,055,957 $ 28,560,502 $ 7,619,388 $ (20,941,114) -73.3% $ 3,445,573 Investment (Interest) $ 33,012 $ 2,371 $ 40,000 $ 40,000 $ 0.0% - $ 40,000 Total Parking Authority Fund 33,012 $ $ 2,371 $ 40,000 $ 40,000 $ 0.0% - $ 40,000

GAS TAX FUND

HOUSING AUTHORITY FUND

INFORMATION TECHNOLOGY SERVICES AND REPLACEMENT FUND

LOCAL RETURN FUND

LOW AND MODERATE INCOME HOUSING ASSET FUND

MISCELLANEOUS GRANTS FUND

PARKING AUTHORITY FUND

7.A.a
Packet Pg. 100 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 63 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - FIVE-YEAR REVENUE SUMMARY
FY 2022-23 FY 2023-24 FY 2024-25
FY 2020-21 FY 2021-22 Revised Proposed Change Change Budget Fund/Revenue Category Actual Actual Budget Budget Amount Percent Plan

FIVE-YEAR REVENUE SUMMARY
FY 2022-23 to FY 2023-24
Investment (Interest) $ 1,057 $ 153 $ 3,000 $ 3,000 $ 0.0% - $ 3,000 Total Parks & Rec Facilities Fund $ 1,057 $ 153 $ 3,000 $ 3,000 $ 0.0% - $ 3,000 Charges for Services $ 3,163,590 $ 6,725,936 $ 9,003,696 $ 8,783,273 $ (220,423) -2.4% $ 8,866,497 Investment (Interest) 95,792 20,356 - - N/A - -
Rent - - - 3,403 3,403 N/A 3,505
Other 1,210 1,322 - - N/A - -
Total Pier Fund 3,260,592 $ $ 6,747,614 $ 9,003,696 $ 8,786,676 $ (217,020) -2.4% $ 8,870,002 Charges for Services $ 26,842,778 $ 27,347,037 $ 28,120,375 $ 34,297,070 $ 6,176,695 22.0% $ 38,701,816 Investment (Interest) 436,490 145,560 250,000 250,000 0.0% - 250,000 Other 281,575 698,161 446,976 456,535 2.1% 9,559 461,536 Total RRR Fund 27,560,843 $ $ 28,190,758 $ 28,817,351 $ 35,003,605 $ 6,186,254 21.5% $ 39,413,352 Charges for Services $ 5,200,000 $ 5,200,000 $ 5,200,000 $ 4,400,000 $ (800,000) -15.4% $ 4,200,000 Investment (Interest) 80,486 24,540 70,000 70,000 0.0% - 70,000 Total Self-Insurance, Bus Fund 5,280,486 $ $ 5,224,540 $ 5,270,000 $ 4,470,000 $ (800,000) -15.2% $ 4,270,000 Charges for Services $ 17,451,656 $ 67,719,187 $ 14,100,000 $ 12,200,000 $ (1,900,000) -13.5% $ 14,000,000 Investment (Interest) 98,257 55,218 155,000 155,000 0.0% - 155,000 Total Self-Ins., Gen Liab. / Auto Fund 17,549,913 $ $ 67,774,405 $ 14,255,000 $ 12,355,000 $ (1,900,000) -13.3% $ 14,155,000 Charges for Services $ 4,065,875 $ 4,472,123 $ 5,357,547 $ 6,113,500 $ 755,953 14.1% $ 7,123,900 Investment (Interest) - 730 - - N/A - -
Total Self-Ins., Risk Mgt.-Admin Fund 4,065,875 $ $ 4,472,853 $ 5,357,547 $ 6,113,500 $ 755,953 14.1% $ 7,123,900

SELF-INSURANCE, BUS FUND

SELF-INSURANCE, GENERAL LIABILITY / AUTO FUND

SELF-INSURANCE, RISK MANAGEMENT ADMINISTRATION FUND

RESOURCE RECOVERY AND RECYCLING (RRR) FUND

PARKS AND RECREATION FACILITIES FUND

PIER FUND

7.A.a
Packet Pg. 101 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 64 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - FIVE-YEAR REVENUE SUMMARY
FY 2022-23 FY 2023-24 FY 2024-25
FY 2020-21 FY 2021-22 Revised Proposed Change Change Budget Fund/Revenue Category Actual Actual Budget Budget Amount Percent Plan

FIVE-YEAR REVENUE SUMMARY
FY 2022-23 to FY 2023-24
Charges for Services $ 19,075,424 $ 16,978,358 $ 15,500,379 $ 13,500,000 $ (2,000,379) -12.9% $ 14,000,000 Investment (Interest) 965,159 358,964 770,000 770,000 0.0% - 770,000 Other 39,118 7,324 - - N/A - -
Total Self-Ins., Workers' Comp Fund 20,079,701 $ $ 17,344,645 $ 16,270,379 $ 14,270,000 $ (2,000,379) -12.3% $ 14,770,000 Investment (Interest) $ 16,958 $ 6,408 $ 10,000 $ 10,000 $ 0.0% - $ 10,000 Intergovernmental 120,598 120,147 137,004 119,000 (18,004) -13.1% 119,000 Total SCAQMD AB 2766 Fund 137,556 $ $ 126,555 $ 147,004 $ 129,000 $ -12.2% (18,004) $ 129,000 Charges for Services $ 560,304 $ 595,102 $ 5,448,107 $ 448,107 $ (5,000,000) -91.8% $ 448,107 Investment (Interest) 283,495 76,237 200,000 - -100.0% (200,000) - Rent 179,525 194,423 230,000 230,000 0.0% - 230,000
Intergovernmental - 547,516 - 547,516 0.0% - 547,516
Other 3,895,790 7,568,956 3,005,548 3,488,554 483,006 16.1% 3,588,554 Total Special Revenue Source Fund 4,919,115 $ $ 8,434,718 $ 9,431,171 $ 4,714,177 $ (4,716,994) -50.0% $ 4,814,177 Charges for Services $ 1,609,229 $ 1,419,613 $ 1,706,858 $ 1,706,858 $ 0.0% - $ 1,706,858 Investment (Interest) 104,575 42,570 20,000 20,000 0.0% - 20,000 Other 449,042 421,359 400,000 400,000 0.0% - 400,000
Total Stormwater Management Fund 2,162,846 $ $ 1,883,541 $ 2,126,858 $ 2,126,858 $ 0.0% - $ 2,126,858 Other Local Taxes $ 48,060 $ 36,732 $ 25,000 $ 25,000 $ 0.0% - $ 25,000 Investment (Interest) 102,957 28,814 110,000 110,000 0.0% - 110,000 Other 268,794 183,542 50,000 50,000 0.0% - 50,000
Total TORCA Fund 419,811 $ $ 249,087 $ 185,000 $ 185,000 $ 0.0% - $ 185,000 Charges for Services $ 10,716,549 $ 14,214,770 $ 17,232,235 $ 18,421,200 $ 1,188,965 6.9% $ 18,679,070 Investment (Interest) 333,561 134,993 440,000 440,000 0.0% - 440,000 Other 239,497 215,370 90,100 152,600 69.4% 62,500 150,700 Total Vehicle Management Fund 11,289,607 $ $ 14,565,133 $ 17,762,335 $ 19,013,800 $ 1,251,465 7.0% $ 19,269,770

SPECIAL REVENUE SOURCE FUND

STORMWATER MANAGEMENT FUND

TENANT OWNERSHIP RIGHTS CHARTER AMENDMENT (TORCA) FUND

VEHICLE MANAGEMENT FUND
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) AB 2766 FUND

SELF-INSURANCE, WORKERS' COMPENSATION FUND

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Packet Pg. 102 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 65 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - FIVE-YEAR REVENUE SUMMARY
FY 2022-23 FY 2023-24 FY 2024-25
FY 2020-21 FY 2021-22 Revised Proposed Change Change Budget Fund/Revenue Category Actual Actual Budget Budget Amount Percent Plan

FIVE-YEAR REVENUE SUMMARY
FY 2022-23 to FY 2023-24
Charges for Services $ 17,330,719 $ 19,249,781 $ 21,236,857 $ 23,231,954 $ 1,995,097 9.4% $ 26,015,343 Investment (Interest) 673,178 162,590 860,000 860,000 0.0% - 860,000 Other 215,646 382,893 220,000 220,000 0.0% - 220,000
Total Wastewater Fund 18,219,543 $ $ 19,795,263 $ 22,316,857 $ 24,311,954 $ 1,995,097 8.9% $ 27,095,343 Charges for Services $ 29,638,341 $ 34,259,153 $ 41,030,526 $ 50,424,641 $ 9,394,115 22.9% $ 54,375,506 Investment (Interest) 1,225,317 464,684 750,000 750,000 0.0% - 750,000 Other 555,668 675,773 555,000 555,000 0.0% - 555,000
Total Water Fund 31,419,326 $ $ 35,399,610 $ 42,335,526 $ 51,729,641 $ 9,394,115 22.2% $ 55,680,506 Total All Funds $ 647,784,958 $ 823,690,346 $ 817,595,791 $ 831,168,295 $ 13,572,504 1.7% $ 870,098,412 Less Reimbursements and Transfers (78,949,171) $ $ (131,910,242) $ (85,969,432) $ (84,024,054) $ 1,945,378 -2.3% $ (88,139,572) Grand Total $ 568,835,787 $ 691,780,104 $ 731,626,359 $ 747,144,241 $ 15,517,882 2.1% $ 781,958,840

WATER FUND

ALL FUNDS

WASTEWATER FUND
FY 2022-23 FY 2023-24 FY 2024-25
FY 2020-21 FY 2021-22 Revised Proposed Change Change Budget Fund/Revenue Category Actual Actual Budget Budget Amount Percent Plan

WATER FUND

ALL FUNDS

WASTEWATER FUND
Other 3,895,790 7,568,956 3,005,548 3,488,554 483,006 16.1% 3,588,554 Total Special Revenue Source Fund 4,919,115 $ $ 8,434,718 $ 9,431,171 $ 4,714,177 $ (4,716,994) -50.0% $ 4,814,177 Charges for Services $ 1,609,229 $ 1,419,613 $ 1,706,858 $ 1,706,858 $ 0.0% - $ 1,706,858 Investment (Interest) 104,575 42,570 20,000 20,000 0.0% - 20,000 Other 449,042 421,359 400,000 400,000 0.0% - 400,000
Total Stormwater Management Fund 2,162,846 $ $ 1,883,541 $ 2,126,858 $ 2,126,858 $ 0.0% - $ 2,126,858 Other Local Taxes $ 48,060 $ 36,732 $ 25,000 $ 25,000 $ 0.0% - $ 25,000 Investment (Interest) 102,957 28,814 110,000 110,000 0.0% - 110,000 Other 268,794 183,542 50,000 50,000 0.0% - 50,000
Total TORCA Fund 419,811 $ $ 249,087 $ 185,000 $ 185,000 $ 0.0% - $ 185,000 Charges for Services $ 10,716,549 $ 14,214,770 $ 17,232,235 $ 18,421,200 $ 1,188,965 6.9% $ 18,679,070 Investment (Interest) 333,561 134,993 440,000 440,000 0.0% - 440,000 Other 239,497 215,370 90,100 152,600 69.4% 62,500 150,700 Total Vehicle Management Fund 11,289,607 $ $ 14,565,133 $ 17,762,335 $ 19,013,800 $ 1,251,465 7.0% $ 19,269,770

STORMWATER MANAGEMENT FUND

TENANT OWNERSHIP RIGHTS CHARTER AMENDMENT (TORCA) FUND

VEHICLE MANAGEMENT FUND

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Packet Pg. 103 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 66 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - OVERVIEW

OVERVIEW
Departmental staff works in concert with Finance Department staff to develop revenue projections. The projections reflect a somewhat conservative, yet prudent and consistent, approach using established budget practices that reflect the economic impacts described in the “Overall Economic Conditions” section of the budget.

Staff considers qualitative and quantitative methods of forecasting and uses techniques such as trend analysis, economic indicators, and professional judgment, to arrive at the revenue projections. Revenue forecasting is always one of the most challenging aspects in the budget process, with many unknown variables over which the City has little or no control including fluctuations in the local, regional, statewide, and national economies; patterns of consumer habits and demands; geo-political events, and the fiscal impacts of legislative changes.

TOTAL CITY REVENUES
Total City revised budgeted revenues for FY 2022-23, after adjustments for reimbursements and transfers between funds, are $731.6 million, reflecting a $39.8 million, or 5.8%, increase over FY 2021-22. Primary drivers of the increases by fund are described in the following Fund Details section.

FY 2023-24 total City revenues, after adjustments for
reimbursements and transfers between funds, are projected to be $747.2 million, $15.5 million or 2.1% more than the FY 2022-23 budget. The increase reflects greater General Fund revenues ($13.4 million) primarily from various taxes including Transient Occupancy and Property taxes ($4.8 million), Community Broadband revenues ($2.6 million), anticipated developer payments ($2.0 million) and revenue ($4.0 million) from the City’s new Digital Wayfinding Kiosk program. Other increases include revenues from the Big Blue Bus Fund ($11.4 million) primarily from increased capital project funding, the Water Fund ($9.4 million) and Wastewater Fund ($2.0 million) from scheduled water and wastewater rate adjustments, the Resource Recovery and Recycling Fund ($6.2 million) from anticipated solid waste rate adjustments, the Local Return Fund ($2.2 million) based on estimates of funding allocation from LA Metro, and the Housing Authority Fund ($2.1 million) reflecting increased use and associated funding allocation of Federal Housing Choice Voucher (Section 8) Program vouchers. The increases are primarily offset by decreases in the Miscellaneous Grants Fund ($20.9 million) reflecting the timing of estimated reimbursement revenues from grant expenses. All other funds are expected to show a net revenue decrease of $9.4 million.

FY 2024-25 total City revenues, after adjustments for reimbursements and transfers between funds, are projected to be $782.0 million, $34.8 million or 4.7% more than in FY 2023-24. The increase is primarily driven by greater General Fund revenues ($13.2 million) reflecting continued recovery from the pandemic-induced economic downturn; increases in the Big Blue Bus Fund ($13.0 million) primarily from increased capital project funding, increases in the Resource Recovery and Recycling Fund ($4.4 million) from anticipated solid waste rate adjustments, and increases in the Water Fund ($4.0 million) and Wastewater Fund ($2.8 million) reflecting $0
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Packet Pg. 104 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 67 scheduled water and wastewater rate adjustments. The increases are primarily offset by a decrease in expected grant funding in the Miscellaneous Grants Fund ($4.2 million). All other funds are expected to show net revenue growth of $1.6 million.

FUND DETAILS
Revenue projections for the next two fiscal years for all City funds are detailed in the section that follows.

GENERAL FUND
The FY 2022-23 revised revenue budget is $425.3 million, $11 million (2.6%) more than in FY 2021-22 and nearly $100 million more than in FY 2020-21, the lowest year of the COVID-19 pandemic. The global, national, and local economies recovered faster than anticipated from the pandemic-induced recession.

The hardest hit areas of the economy, tourism, retail, and hospitality sectors have all showed a strong recovery, although certain areas such as parking, international travel, and business travel continue to lag.

FY 2023-24 total General Fund revenues are projected to be $438.7 million, which is $13.4 million (3.2%) greater than the FY 2022-23 revised budget. Revenue increases primarily reflect gains in charges for services ($6 million), Transient Occupancy Taxes ($3.5 million) primarily reflecting voter approved (Measure CS) increases in the tax rate, property taxes ($2.2 million), Utility Users Taxes ($0.9 million), Business License taxes ($0.6 million), and a net increase of $0.2 million from various other sources.

FY 2024-25 revenues are forecast to be $451.9 million, $13.2 million (3%) more than in FY 2023-24. The increases are from Property Taxes ($2.4 million), Sales Taxes ($2.2 million), Documentary Transfer Taxes ($2 million), other taxes ($0.6 million), investment income ($1 million), and a net increase of $5 million from various other revenues.

General Fund revenues are grouped into the following major revenue categories. An in-depth review of each of these major revenue categories follows:
• Property Taxes • Licenses & Permits
• Sales Taxes • Fines/Forfeitures
• Other Taxes • Charges for Services
◊ Utility Users Taxes • Investment Income (Interest)
◊ Transient Occupancy Taxes • Rent
◊ Business Licenses Taxes • Intergovernmental
◊ Other Local Taxes • Other
FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - OVERVIEW
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PROPERTY TAXES
Property Tax revenues result from a 1% levy on the assessed value of all real property in the City. Proposition 13, passed by California voters in 1979, specifies that assessed value of properties will change at the rate of the Consumer Price Index, not to exceed 2% per year, unless the property is improved or sold, thus establishing a new market value.

The 1% Property Tax levy is collected by the Los Angeles County Tax Collector and is distributed to various public agencies located in the County, including cities, school districts, and special districts. Santa Monica’s share of the 1% levy is approximately 14% to 17%, depending on the area of the City where the property is located.

The primary component of Property Taxes is taxes secured by real property. The City also receives unsecured property taxes, a reimbursement of homeowners’ exemptions, pass through and residual tax payments related to the former Redevelopment Agency (RDA), and an additional levy over the 1% rate used to pay debt service on voter approved debt. Beginning in FY 2004-05, this category also includes property taxes received in exchange for lost Vehicle License Fee (VLF) revenue resulting from the decrease in the VLF rate per the FY 2004-05 State budget (VLF Swap).

The FY 2022-23 revised budget for Property Tax revenues is $3.3 million more than in FY 2021-22, primarily due to increases in assessed valuation growth and residual Property Tax payments related to the former RDA.

FY 2023-24 Property Taxes are projected to be $2.2 million more than FY 2022-23, primarily from assessed valuation increases that are expected to continue, but at a slower pace than the last few years, and greater residual Property Tax payments related to the former RDA.

Revenues are anticipated to increase by another $2.4 million in FY 2024-25 based on slower assessed valuation growth as the real estate market continues to soften.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, GENERAL FUND

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Packet Pg. 106 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 69 SALES TAXES
The total sales tax rate in Santa Monica is 10.25%. The rate is allocated as follows:

State 6.00%
Local 1.00% City General Fund

0.25% To Counties for Transportation Uses
Prop A 0.5%
Prop C 0.5%
Measure R 0.5%
Measure M 0.5%
Measures Y 1.00% Measure Y approved by Santa Monica voters in November 2010 added 0.5% and Measure and GSH GSH approved by Santa Monica voters in November 2016 added an additional 0.5% to the rate.

One half of the Measure Y and Measure GSH Transaction and Use Tax revenues are paid to the Santa MonicaMalibu Unified School District for use of certain school district facilities. Additionally, 25% of the Measure GSH revenues are set aside to be used for affordable housing. The affordable housing allocation was suspended in FY 2020-21 to help offset pandemic-induced revenue losses.

Sales tax revenues have rebounded strongly and quicker than anticipated from pandemic lows and have returned to pre-COVID levels. The FY 2022-23 revised budget is $14 million (nearly 22%) greater than in FY 2019-20 and FY 2020-21.

However, the economy has started to show signs of weakness, which is expected to continue into FY 2023-24 when revenues are projected to be flat with FY 2022-23.

Sales Tax revenues are projected to increase $2.2 million (2.8%) in FY 2024-25 as the economy strengthens and sales taxes growth approaches the projected long-term trend.

FY 2023-25 PROPOSED BIENNIAL BUDGET

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Packet Pg. 107 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 70 $0
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UTILITY USERS TAXES
The City’s 10% Utility Users Tax (UUT) is applied to electricity, natural gas, telephone (both hardwire and wireless), cable, and water/wastewater services.

FY 2022-23 revised budget revenue projections are
approximately 2.4% more than in FY 2021-22 due to spikes in electricity and natural gas rates.

UUT are projected to increase by $0.9 million (2.7%) in FY 2023-24 and another $0.7 million in FY 2024-25 (1.8%) primarily due to Council-approved water and wastewater rate increases, partially offset by the continuing decrease in revenues from telecommunication services as consumers shift to more internet-based services which are not subject to the tax.

TRANSIENT OCCUPANCY TAX
The City levies a tax on transient room rentals of 15% for hotel/ motel stays and 17% for homeshare stays.

Tourism, one of the primary drivers of the City’s economy, has experienced a stronger and faster than anticipated recovery after the devastating impacts of the COVID-19 pandemic which resulted in a 70% decrease in tax receipts. Exclusive of a onetime accounting change made in FY 2020-21, the FY 2022-23 revised budget is nearly 10% more than FY 2021-22 actuals and has exceeded pre-pandemic levels. The increase reflects higher average room rates and occupancy levels, although occupancy still lags behind pre-COVID levels as international and business travel have been slower to recover than domestic leisure travel.

The estimate also includes the partial year impact of the voter-approved Measure CS, which increased the tax rates from 14%, effective March 1, 2023.

While tourism is expected to remain strong, the uncertain economy over the next 12-18 months could negatively affect the tourism industry. Additionally, the closure of a major hotel is expected to impact revenues for at least the first half of FY 2023-24. Therefore, the 5.3% increase projected for FY 2023-24 is almost entirely due to the full year impact of the tax rate increases.

Another major hotel will be closed for renovation for approximately 30 months beginning in FY 2024-25.

Additionally, increased enforcement regarding illegally operating homeshares may impact revenues. Based on these factors, FY 2024-25 taxes are projected to be essentially flat with FY 2023-24 levels. $0
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Packet Pg. 108 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 71 BUSINESS LICENSE TAXES
Businesses operating in the City of Santa Monica are required to obtain a business license annually and pay a tax. In most cases, the amount of the tax is based on prior calendar year gross business receipts. There are three major tax categories:

Professional: $5.00 for each $1,000 in gross receipts
Services: $3.00 for each $1,000 in gross receipts
Other: $1.25 for each $1,000 in gross receipts
Certain other small categories pay a flat fee. Businesses with gross receipts between $40,000 and $60,000 annually pay the minimum tax of $75. Businesses with worldwide gross receipts less than $40,000 annually may request an exemption from paying the tax.

Due to the reporting period for calculating business license taxes (fiscal year revenues are based on businesses’ gross receipts from the prior calendar year), most of the pandemic-related revenue impact was realized in FY 2021-22, when revenues dropped over 13%. The fast recovery from the pandemic-induced recession was also seen in business license tax revenues as the FY 2022-23 revised budget is $2.2 million (7.5%) more than FY 2021- 22 actuals.

FY 2023-24 revenues (based on calendar year 2022 gross receipts) are expected to grow by approximately 2% ($0.6 million). However, the economic weakening during the fiscal year is expected to impact FY 2024-25 revenues, which are projected to be relatively flat with FY 2023-24 levels.

FY 2023-25 PROPOSED BIENNIAL BUDGET

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Packet Pg. 109 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 72 OTHER TAXES
Other Taxes include:

Real Property (Documentary) Transfer Tax The
Documentary Transfer Tax is levied on the sale of real property in the City at a rate of $3.00 per $1,000 of transfer value for transfers valued under $5 Million. Per Measure SM, approved by Santa Monica voters in November 2020, transfers valued $5 million and over are assessed a tax of $6.00 per $1,000 of transfer value. Measure GS, approved by voters in November 2022, added a third tier to the tax of $56.00 per $1,000 for transfers valued at $8 million and over, effective March 1, 2023.

The incremental revenues from the third tier are restricted as to use and will be deposited into the Special Revenue Source Fund.

Vehicle License Fees (VLF) The State Budget Act of 2011 ended the allocation of VLF to cities with the exception of a small portion related to certain compliance procedures.

Parking Facility Tax The Parking Facility Tax of 10% is assessed on private and public parking fees collected in the City.

Condominium Tax The Condominium Tax of $1,000 per unit is assessed on all new condominium construction and condominium conversions in the City.

Revenues from these other taxes have recovered from the pandemic. Revenues spiked in FY 2021-22, mostly due to the addition of the second tier of the Documentary Transfer Tax ($6.00 per $1,000 for transfers $5 million and over) effective March 1, 2021, as well as a number of very large transfers occurring in that year. The FY 2022-23 revised budget reflects a $6 million decrease over the prior year due to a sharp decrease in the number of property transfers (down 37% year-to-date through February 2023) as the economy and housing market have shown signs of weakness.

The FY 2023-24 projected decrease of $1.2 million primarily reflects continued weakness in the real estate market resulting in fewer property transfers, partially offset by a projected 4.6% increase in Parking Facility Taxes as parking activity in the City continues to increase, but still remains below pre-COVID levels.

FY 2024-25 revenues are projected to increase an additional $2.3 million reflecting increased Documentary Transfer Taxes and Parking Facility Taxes as the economy improves after an expected weakening in FY 2023-24.

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Packet Pg. 110 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 73 LICENSES AND PERMITS
The primary component of the Licenses and Permits revenue category is parking revenues, which have recovered strongly from pandemic lows, but still have not recovered to pre-COVID levels of $39.9 million. The rebound in parking activity has been slower than anticipated as parkers have trended towards parking in facilities that offer free parking for short stays.

Additionally, the remote and hybrid work environment continue to impact overall parking activity. Therefore, the FY 2022- 23 revised revenue budget is relatively flat with FY 2021-22 actuals.

Revenues are expected to return to a moderate, steady recovery in FY 2023-24 as visitation to the City increases, resulting in a $1.4 million (4.1%) increase, followed by an additional $0.6 million (1.8%) increase in FY 2024-25. The revenue projections do not include the impact of any potential parking rate increases, which are currently pending before the Coastal Commission.

FINES AND FORFEITURES
Fines and forfeitures are comprised mainly of parking citation fines but also include administrative fines and penalties from Code Enforcement and Police Department activities, California vehicle code fines, library fines, and other administrative fines.

In total, the FY 2022-23 revised revenue budget of $13.4 million is up approximately 9% from FY 2021-22 but remains approximately 10% below pre-pandemic levels.

Revenues are projected to remain relatively flat in FY 2023-24 and FY 2024-25 at $13.3 million. Parking citation revenues are projected at $12.9 million for both years and represent a gradual return to near pre-pandemic levels.
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CHARGES FOR SERVICES
The FY 2022-23 revised revenue budget of $47.1 million is $4.0 million over FY 2021-22, primarily due to increased reimbursement from other funds for general government
administrative support services, increased building permit revenue as building activity returned to pre-pandemic levels, and increased enrollment in City afterschool programs. The increases were partially offset by lower than anticipated revenues related to mutual aid deployments by the Fire Department to assist with wildfires as part of multiple mutual aid strike team deployments and mobile stroke unit special deployments (these are typically unbudgeted reimbursements that fluctuate year over year).

Revenues are projected to increase by $6.5 million in FY 2023-24 to $53.6 million, primarily due to the advertising revenue from the City’s new Digital Wayfinding Kiosk program and the consolidation of the Community Broadband Fund into the General Fund. These increases are partially offset by a decrease in zoning revenue due to process streamlining, which reduces the number of projects requiring zoning review and by a further reduction to mutual aid deployment revenues.

In FY 2024-25 revenues are projected to increase by $1.0 million to $54.6 million primarily due to an increase in reimbursements from other funds for general government administrative support based on projected total compensation costs.

INVESTMENT INCOME
Total investment income represents earnings from the City’s pooled investment portfolio (which primarily consists of reserves) and bond/loan proceeds. Revenues are budgeted on a cash basis and do not take into account unrealized gains or losses. Additionally, interest on bond proceeds is not typically included in the budget since it is restricted to the projects for which the bonds were issued. The chart and the discussion exclude unrealized gains and losses, other year-end accounting adjustments, and interest from bond/loan proceeds.

FY 2022-23 revised budget revenues are $2 million more than in FY 2021-22 as interest rates rose sharply over the last several months after a long period of historically low rates.

FY 2023-24 revenues are projected to be flat with FY 2022-23 levels. While the overall portfolio yield is expected to increase as many investments purchased before the rise in rates will mature and be reinvested at much higher rates of return, the increase will be offset by an expected decrease in the investable fund balance due to large legal settlement payments.
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Packet Pg. 112 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 75 FY 2024-25 revenues are projected to increase by $1 million as the portfolio continues to shed investments purchased during the low interest environment, and funds are reinvested at higher rates. The investable fund balance is anticipated to remain relatively flat.

RENT
The FY 2022-23 revised lease revenue budget of $7.8 million is $1.2 million greater than FY 2021-22 due to an increase in percentage rents for leases of City-owned property, a partial year of the reinstated outdoor dining fees, and revenue from the new parklet program.

FY 2023-24 revenues are projected to increase by $0.4 million to $8.2 million reflecting a full year of outdoor dining license and parklet fees.

FY 2024-25 revenues are projected to remain relatively level with FY 2023-24.

INTERGOVERNMENTAL
This revenue category is related to reimbursements from other government agencies. FY 2022-23 revised budgeted revenue of $4.4 million is $2.9 million greater than FY 2021-22 due to one-time State reimbursement for SB 90 claims from prior years (2002 to 2013) and election cost reimbursements from the Santa Monica-Malibu Unified School District, the Santa Monica Community College District, and the Rent Control Board, which typically occur on a biennial basis, as reflected in FY 2024-25 revenues.
$0
$3
$6
$9
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, GENERAL FUND
$0
$1
$2
$3
$4
$5
20-21
Actual
21-22
Actual
22-23
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23-24
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24-25
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in Millions

7.A.a
Packet Pg. 113 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 76 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, GENERAL FUND

OTHER REVENUES
The FY 2022-23 revised revenue budget of $3.6 million is $0.7 million less than in FY 2021-22 primarily due to one-time revenues received in FY 2021-22 from legal settlements and reimbursements from various sources.

Other revenues are projected to increase by about $1.0 million in FY 2023-24 and an additional $2.6 million in FY 2024-25. These increases are primarily related to anticipated developer payments from the Miramar Hotel during the period it is closed for renovation to partially offset lost Transient Occupancy Taxes and the discount the City receives for pre-paying the full employer share of its CalPERS retirement contribution at the beginning of each fiscal year, which is expected to resume in FY 2024-25 after being suspended in FY 2023-24. $0
$2
$4
$6
$8
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 114 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 77 FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS

AIRPORT FUND
This enterprise fund accounts for revenues and expenses connected with management of the Santa Monica Municipal Airport and its property.

FY 2022-23 revised budgeted revenues of $18.8 million reflect an increase of $1.1 million from FY 2021-22 primarily due to increased property rental income from new leases.

Revenues are projected to remain relatively flat in FY 2023-24 due to temporary vacancies while building renovations occur.

Revenues for FY 2024-25 are projected to increase by $1.7 million once renovations are complete and lease revenues are reinstated.

BEACH RECREATION FUND
This special revenue fund accounts for revenues and expenses related to beach parking, beach recreation activities, concession revenues, beach maintenance, and Beach House operations.

Beach parking revenues account for approximately 80% of total revenues and can be highly dependent on weather conditions and other factors.

FY 2022-23 revised budgeted revenues of $16.3 million reflect a $0.6 million decrease from FY 2021-22 primarily due to lower than projected parking due to setbacks in the implementation of a projected rate increase pending California Coastal Commission (CCC) approvals, a key step in the process to implement a rate increase.

FY 2023-24 revenues are projected to increase by $0.5 million to $16.8 million due to increasing special event and parking permit activity. FY 2024-25 revenues are projected to increase by an additional $0.3 million to $17.1 million, reflecting increases in lease agreements. Parking revenue estimates do not include the impact of potential parking rate increases, which are pending California Coastal Commission (CCC) approval. $0
$3
$6
$9
$12
$15
$18
$21
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$3
$6
$9
$12
$15
$18
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 115 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 78 BIG BLUE BUS FUND
This enterprise fund accounts for operating and capital revenues and expenses related to operation of the City's municipal bus lines.

FY 2022-23 revised budgeted revenues of $101.1 million are $12.5 million higher than FY 2021-22, primarily due to an increase in the funding allocation by LA Metro as a result of higher than anticipated County and State-wide sales tax revenues.

FY 2023-24 revenues are projected to increase by $10.5 million to $111.6 million due to the projected increases in funding allocations and reimbursements associated with capital
projects, including bus purchases, due to the shift to electric vehicles. FY 2024-25 revenues are projected to increase by $13.0 million to $124.6 million due to capital reimbursements associated with the procurement of 15 battery electric buses.

CEMETERY FUND
This enterprise fund accounts for revenues and expenses associated with the operation of the City of Santa Monica Woodlawn Cemetery, Mausoleum, and Mortuary.

FY 2022-23 revised budgeted revenues of $2.1 million are $1.1 million lower than FY 2021-22, reflecting a decrease in cemetery and mausoleum-related sales and a one-time donation received in FY 2021-22.

FY 2023-24 revenues are expected to increase by approximately $0.3 million to $2.4 million due to the availability of additional niches, the purchase of unused plots, and the reallocation of abandoned plots. FY 2024-25 revenues are anticipated to remain relatively flat at $2.5 million. $0
$25
$50
$75
$100
$125
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$1
$2
$3
$4
20-21
Actual
21-22
Actual
22-23
Revised
23-24
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24-25
Budget
in Millions

7.A.a
Packet Pg. 116 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 79 CITIZENS' OPTION FOR PUBLIC SAFETY (COPS) FUND
This fund accounts for State-funded revenues and associated expenditures for the Citizens Option for Public Safety (COPS) program established per AB3229 of 1996.

FY 2022-23 revised budgeted revenues of $225,000 are
relatively level with FY 2021-22.

FY 2023-24 and FY 2024-25 revenues are projected to continue to remain flat with FY 2022-23.

CLEAN BEACHES AND OCEAN PARCEL TAX FUND
This fund records activity related to implementation of the Watershed Management Plan and the passage of Measure V, Clean Beaches and Ocean Parcel Tax, in November 2006. The assessment rate is subject to annual CPI increases.

FY 2022-23 revised budgeted revenues of $7.0 million are $0.2 million more than FY 2021-22, which reflect installments of a three-year Measure W, Safe Clean Water Program regional grant.

FY 2023-24 revenues are projected to decrease by $2.4 million to $4.6 million reflecting the end of the three-year Measure W, Safe Clean Water Program regional grant. FY 2024-25 revenues are expected to remain level.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$2
$4
$6
$8
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$40
$80
$120
$160
$200
$240
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Thousands

7.A.a
Packet Pg. 117 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 80 COMMUNITY BROADBAND FUND
This enterprise fund recorded revenues and expenses related to the management of Santa Monica CityNet, the City’s 100 Gigabit advanced broadband initiative. Effective FY 2023- 24, the Community Broadband Fund has been consolidated
into the General Fund, realigning the structure of CityNet operations as a way to control costs.

FY 2022-23 revised budgeted revenues of $2.6 million are $0.2 million less than FY 2021-22 and reflect the difficult business environment as businesses continue the transition to hybrid or fully remote work.

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND
The Community Development Block Grant (CDBG) Fund
accounts for Federal entitlements under the Housing and Community Development Act of 1974 (as amended). The City Council annually allocates CDBG funds to various programs.

FY 2022-23 revised budgeted revenues of $1.2 million are $0.1 less than FY 2021-22 due to the one-time CARES Act funding in FY 2021-22.

FY 2023-24 revenues of $1.5 million are $0.3 million higher than FY 2022-23, reflecting an increase in the annual allocation amount and the reprogramming of prior year funds. FY 2024-25 revenues are projected at the historical funding level of $1.2 million.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$1
$2
$3
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$1
$2
$3
$4
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 118 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 81 GAS TAX FUND
The Gas Tax Fund collects revenue resulting from a State tax on the sale of gasoline in accordance with the provisions of the State of California Streets and Highway Code. The State of California imposes per-gallon excise taxes on gasoline and diesel fuel, sales taxes on gasoline and diesel fuel and registration taxes on motor vehicles with allocations dedicated to transportation purposes. Gas Tax funds are used to perform citywide repairs and restoration to existing roadways, reduce congestion and to improve safety.

FY 2022-23 revised budgeted revenues of $4.6 million are $0.7 million more than FY 2021-22 primarily due to higher than anticipated gas tax apportionments from the State.

FY 2023-24 revenues are projected to increase by $0.4 million to $5.0 million and increase an additional $0.2 million in FY 2024-25, reflecting updated gas tax apportionment estimates.

HOUSING AUTHORITY FUND
The Housing Authority Fund accounts for the receipt and expenditure of Federal funds related to housing programs.

FY 2022-23 revised budgeted revenues of $27.1 million are approximately $0.3 million higher than FY 2021-22 reflecting a slight increase in utilization of Section 8 vouchers.

FY 2023-24 revenues are projected to increase by $2.1 million to $29.2 million and increase by an additional $1.0 million to $30.2 million in FY 2024-25, reflecting the projected increase in unit utilization in both the Section 8 and Emergency Housing Voucher Programs.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$2
$4
$6
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$5
$10
$15
$20
$25
$30
$35
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 119 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 82 INFORMATION TECHNOLOGY SERVICES AND REPLACEMENT FUND This internal service fund receives allocations from City departments to finance the City’s annual scheduled expenses for replacement of computer equipment and telephone-related services.

FY 2022-23 revised budgeted revenues of $2.5 million are $1.2 million higher than FY 2021-22. This reflects the General Fund resuming its contributions, which were suspended for two years to address revenue shortfalls from the pandemic.

FY 2023-24 and FY 2024-25 revenues are expected to remain level at $2.5 million.

LOCAL RETURN FUND
This fund records Prop A and Prop C local return funding from MTA. Prior to FY 2016-17, these revenues were recorded in the Miscellaneous Grants Fund.

FY 2022-23 revised budgeted revenues of $6.5 million are approximately $0.4 million less than FY 2021-22 due to lower than expected funding allocations from LA Metro.

FY 2023-24 revenues are projected to increase by $2.1 million to $8.6 million and decrease by $0.9 million to $7.7 million in FY 2024-25 based on estimates of funding allocations from LA Metro.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$1
$2
$3
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$3
$6
$9
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 120 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 83 LOW AND MODERATE INCOME HOUSING ASSET FUND
On February 1, 2012, the Redevelopment Agency of the City of Santa Monica was dissolved, and its assets transferred to the City as the Successor Agency. The City, in turn, assigned housing assets and functions to the Housing Authority, which now maintains prior Redevelopment Low and Moderate Income Housing Fund assets in the Low and Moderate Income Housing Asset Fund.

FY 2022-23 revised budgeted revenues of $0.5 million are essentially level with FY 2021-22 and reflect interest earnings and residual receipts from housing projects.

FY 2023-24 and FY 2024-25 are projected to remain flat with FY 2022-23 revenues.

MISCELLANEOUS GRANTS FUND
This fund accounts for the receipt and expenditure of
miscellaneous federal, state and county awarded grants and special allocations provided to the City.

FY 2022-23 revised budgeted revenues of $28.6 million reflect new grants awarded during the year, including $14.8 million from the State's AB-179 Budget Act of 2022 legislation, authorizing two earmarks to the City for the City Yards Modernization Microgrid and the Lincoln Neighborhood Corridor Streetscape (LiNC) projects, $4.6 million in transportation and mobility grants, $2.9 million in grants related to the HOME voucher program and $1.9 million from the Federal Emergency Management Association (FEMA) in Hazard Mitigation Grant funds to reimburse qualifying property owners in completing their City-required seismic retrofits.

FY 2023-24 revenues are projected at $7.6 million and FY 2024-25 revenues are projected at $3.4 million, reflecting anticipated grant awards and timing of grant receipts.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$1
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$5
$10
$15
$20
$25
$30
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 121 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 84 PARKING AUTHORITY FUND
The Parking Authority is a financing authority for the City's parking structures.

FY 2022-23 revised budgeted revenues of $40,000 are $37,600 above FY 2021-22, which reflected historic low interest rates.

Revenues for FY 2023-24 and FY 2024-25 of $40,000 reflect anticipated interest earnings.

PARKS AND RECREATION FACILITIES FUND
This fund was used to account for funds collected from the Unit Dwelling Tax. Starting in FY 2021-22, no unit dwelling tax is collected, as developers of any new projects that would have paid the Unit Dwelling Tax are eligible to pay the Parks and Recreation Impact Fee in-lieu of the unit dwelling tax. The impact fee is deposited into the Special Revenue Source Fund.

The annual revenue currently recorded in this fund reflects investment income only. The funds are used for the acquisition, improvement, and expansion of public parks, playgrounds, and recreational facilities.

The revised budget of $3,000 in FY 2022-23 is $2,800 higher than FY 2021-22 as a result of the prior year’s historic low interest rate environment. Revenues for FY 2023-24 and FY 2024-25 are projected to remain flat with FY 2022-23.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$1
$2
$3
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Thousands
$0
$10
$20
$30
$40
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Thousands

7.A.a
Packet Pg. 122 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 85 PIER FUND
This enterprise fund accounts for revenues and expenses connected with management, operation, and development
of the Santa Monica Pier. Lease rental and parking revenues account for about 80% of total revenues and can be highly dependent on weather conditions and other factors, including impacts due to closures related to the pandemic.

FY 2022-23 revised budgeted revenues of $9.0 million are $2.3 million higher than FY 2021-22, reflecting continued economic recovery and improving lease revenues.

FY 2023-24 and FY 2024-25 revenues are projected to remain essentially level with FY 2022-23 at $8.8 million and $8.9 million, respectively.

RESOURCE RECOVERY AND RECYCLING (RRR) FUND
This enterprise fund accounts for revenues and expenses of operating the City's refuse collection, street sweeping and cleaning, and recycling programs.

FY 2022-23 revised budgeted revenues of $28.8 million are $0.6 million higher than FY 2021-22, from greater than projected construction and demolition permits activity.

FY 2023-24 revenues are anticipated to increase by $6.2 million and a further $4.4 million in FY 2024-25, primarily from the new rates anticipated to be approved and adopted on June 13, 2023 and effective in August 2023, as well as other fee increases.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$10
$20
$30
$40
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$3
$6
$9
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 123 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 86 SELF-INSURANCE, BUS FUND
This internal service fund accounts for contributions from the Big Blue Bus Fund, and expenses related to the administration and payment of bus-related liability claims.

FY 2022-23 revised budgeted revenues of $5.3 million are essentially level with FY 2021-22.

FY 2023-24 and FY 2024-25 revenues are projected to remain relatively flat at $4.5 million and $4.3 million, based on lower contributions required from the Big Blue Bus Fund due to sufficient fund balance available to cover anticipated claim payments.

SELF-INSURANCE, GENERAL LIABILITY/AUTO FUND
This internal service fund accounts for contributions from other funds and expenses related to the administration and payment of general liability and automobile liability claims.

FY 2022-23 revised budgeted revenues of $14.3 million are $53.5 million lower than FY 2021-22 as a result of a transfer in FY 2021-22 from the General Fund to pay for a legal settlement.

A second large settlement ($122.5 million), finalized in late April 2023 is not included in the FY 2022-23 revised budget, which will be adjusted at year-end. Revenues are projected to be $12.4 million in FY 2023-24 and $14.2 million in FY 2024- 25, reflecting required contribution levels from all City funds to ensure an adequate fund balance for anticipated claim payments.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$25
$50
$75
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$2
$4
$6
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 124 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 87 SELF-INSURANCE, RISK MANAGEMENT ADMINISTRATION FUND
This internal service fund represents contributions from other funds for property and other special insurance.

FY 2022-23 revised budgeted revenues of $5.4 million are $0.9 million higher than FY 2021-22, reflecting increased contributions from other funds for property insurance due to rising premiums.

Revenues are projected to increase to $6.1 million in FY 2023- 24 and then increase to $7.1 million in FY 2024-25, reflecting increased contributions required from other funds for property insurance to cover the cost of rising premiums.

SELF-INSURANCE, WORKERS’ COMPENSATION FUND
This internal service fund accounts for contributions from City Departments and expenses related to the administration and payment of workers' compensation claims. Fluctuations in annual contribution levels from all City funds depends on the number and amount of anticipated workers’ compensation
claims.

FY 2022-23 revised budgeted revenues of $16.3 million are $1.0 million lower than FY 2021-22.

FY 2023-24 revenues are projected to decrease by $2.0 million to $14.3 million. FY 2024-25 revenues are projected to increase $0.5 million to $14.8 million.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$6
$12
$18
$24
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$2
$4
$6
$8
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 125 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 88 SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD) FUND
This fund accounts for the receipt of Air Quality Management District funds and eligible expenditures.

FY 2022-23 revised budgeted revenues of $147,004 are
approximately $20,000 more than FY 2021-22, reflecting the one time allocation of grant funds. FY 2023-25 revenues reflect the City’s projected annual funding allocation of $129,000 to remain flat for both years.

SPECIAL REVENUE SOURCE FUND
FUND
In accordance with Government Accounting Standards Board Statement 33, this fund records revenues that are restricted, committed, or assigned for specific uses.

FY 2022-23 revised budgeted revenues of $9.4 million are $1.0 million higher than FY 2021-22 due to increased developer fees.

FY 2023-24 projected revenues of $4.7 million reflect a decrease of $4.7 million as compared to FY 2022-23, primarily due to a large one-time development agreement payment
received in FY 2022-23. FY 2024-25 revenues are projected to increase by $0.1 million, based on the anticipated timing of receipt of fees related to pending development projects.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$50
$100
$150
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Thousands
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 126 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 89 STORMWATER MANAGEMENT FUND
FUND
This enterprise fund accounts for revenues and expenses associated with stormwater management. The primary source of revenue is the stormwater management parcel fee. Additional revenues include the sale of recycled water, operating and capital cost reimbursements from the City of Los Angeles related to the Santa Monica Urban Runoff Recycling Facility (SMURRF) facility, and developer payments.

FY 2022-23 revised budgeted revenues of $2.1 million reflect a $0.2 million increase over FY 2021-22 due to delayed
reimbursement from the City of Los Angeles for operating costs associated with the Santa Monica Urban Runoff Recycling Facility (SMURRF).

FY 2023-24 and FY 2024-25 revenues are anticipated to remain level at $2.1 million.

TENANT OWNERSHIP RIGHTS CHARTER AMENDMENT (TORCA) FUND
The TORCA Fund accounts for TORCA Conversion Tax revenues and expenditures related to various housing programs as authorized by Article XX—Tenant Ownership Rights of the City Charter. The tax was levied on each conversion, with the funds to be used for development and administration of TORCA programs, or to assist low to moderate income households. This program was voted into effect in 1984 by Santa Monica voters and expired in 1996.

Revenue estimates of $185,000 in FY 2023-24 and FY 2024- 25 are projected to remain level with the FY 2022-23 revised budget, reflecting anticipated receipt of TORCA tax revenues from previously approved conversions, and interest earnings on available fund balances.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$1
$2
$3
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$85
$170
$255
$340
$425
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Thousands

7.A.a
Packet Pg. 127 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 90 VEHICLE MANAGEMENT FUND
This internal service fund receives payments and contributions from City departments to finance the City’s annual scheduled costs for vehicle maintenance, fuel, scheduled replacement of vehicles, and the operating costs and future fuel station replacements.

FY 2022-23 revised budgeted revenues of $17.8 million are $3.2 million higher than FY 2021-22. This increase represents resumed contributions from the General and Beach Recreation Funds which were suspended for two years to address revenue shortfalls from the pandemic.

FY 2023-24 revenues are anticipated to increase by $1.2 million over the FY 2022-23 and an additional $0.3 million in FY 2024-25, reflecting required vehicle replacement contributions and anticipated maintenance payments from other funds.

WASTEWATER FUND
This enterprise fund accounts for revenues and expenses associated with maintaining the sanitary sewer and storm drain systems within the City.

FY 2022-23 revised budgeted revenues of $22.3 million are expected to be $2.5 million higher than FY 2021-22, reflecting scheduled wastewater rate adjustments.

FY 2023-24 revenues are projected to increase by $2.0 million, primarily reflecting the last full fiscal year of five annual Councilapproved wastewater rate adjustments. Another $2.8 million increase in FY 2024-25, revenues reflect a half year of Councilapproved rate increase and an estimated rate increase from the next 5-year Water and Wastewater rate study commencing in FY 2023-24. Rate adjustment recommendations will be presented to Council at the conclusion of the study.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$5
$10
$15
$20
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$5
$10
$15
$20
$25
$30
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 128 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 91 WATER FUND
This enterprise fund accounts for revenues and expenses of providing water service to the residents of the City.

FY 2022-23 revised budgeted revenues of $42.3 million are $6.9 million higher than FY 2021-22 due to scheduled water rate adjustments.

FY 2023-24 revenues are projected to increase by $9.4 million to $51.7 million, primarily reflecting the last full fiscal year of five Council-approved annual water rate adjustments. FY 2024- 25 revenues are projected to increase by an additional $4.0 million to $55.7 million, reflecting the last half year of Councilapproved rate increases and an estimated rate increase from the next 5-year Water and Wastewater rate study commencing in FY 2023-24. Rate adjustment recommendations will be presented to Council at the conclusion of the study.

REIMBURSEMENTS AND TRANSFERS
These are technical adjustments to eliminate double counting of certain revenues appearing in two funds and revenues paid by one fund to another due for accounting procedures.

FY 2022-23 revised budgeted reimbursements and transfers are expected to be $85.9 million, which is 35% lower than FY 2021- 22 due to a one-time transfer from the General Fund to the SelfInsurance, General Liability/Auto Fund to fund a settlement.

Reimbursements and transfers are projected to decrease by $1.9 million in FY 2023-24 primarily due to reductions to required self-insurance contributions, primarily for General Liability/Auto and Workers’ Compensation funds. FY 2024-25 is projected to increase by $4.1 million due to increases in the self-insurance contributions.

FY 2023-25 PROPOSED BIENNIAL BUDGET

REVENUES - REVENUE ANALYSIS, OTHER FUNDS
$0
$10
$20
$30
$40
$50
$60
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions
$0
$22
$44
$66
$88
$110
$132
20-21
Actual
21-22
Actual
22-23
Revised
23-24
Budget
24-25
Budget
in Millions

7.A.a
Packet Pg. 129 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES

7.A.a
Packet Pg. 130 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 92 FY 2023-25 PROPOSED BIENNIAL BUDGET
EXPENDITURES - EXPENDITURE SUMMARY BY FUND (FY 2023-24) Fund Salaries and
Wages
Supplies and
Expenses Operating Total Capital Improvements Budget Total General $ 287,814,280 $ 135,555,829 $ 423,370,109 $ 13,504,429 $ 436,874,538 Airport 2,502,953 8,511,953 11,014,906 8,213,889 19,228,795 Beach Recreation 5,548,230 9,597,341 15,145,571 771,720 15,917,291 Big Blue Bus 61,122,618 24,190,314 85,312,932 25,477,150 110,790,082 Cemetery 977,227 1,151,520 2,128,747 249,093 2,377,840
Citizens Op for Public Safety - 106,955 106,955 - 106,955 Clean Beaches/Ocean Parcel Tax - 5,577,297 5,577,297 3,260,000 8,837,297 Community Development Block Grants - 494,499 494,499 1,050,000 1,544,499 Gas Tax - 2,632,472 2,632,472 2,300,000 4,932,472
Housing Authority 2,204,237 27,621,862 29,826,099 12,371 29,838,470 Info Tech Replacement and Services - - - 2,895,400 2,895,400 Local Return - 1,566,367 1,566,367 8,585,200 10,151,567 Low/Mod Income Housing Asset - 389,364 389,364 - 389,364 Miscellaneous Grants - 3,092,232 3,092,232 4,880,735 7,972,967 Parking Authority 900 - 900 - 900
Pier 2,581,917 4,582,253 7,164,170 4,883,787 12,047,957 Resource Recovery & Recycling 14,074,727 19,199,537 33,274,264 4,113,227 37,387,491 Self-Insurance, Bus - 4,709,930 4,709,930 - 4,709,930
Self-Insurance, Comprehensive - 8,682,233 8,682,233 - 8,682,233 Self-Insurance, Risk Management Admin 2,065,354 3,318,553 5,383,907 34,188 5,418,095 Self-Insurance, Workers' Comp - 15,526,658 15,526,658 - 15,526,658 SCAQMD AB 2766 - - - 112,000 112,000
Special Revenue Source - (4,064,935) (4,064,935) 2,631,300 (1,433,635) Stormwater - 1,338,092 1,338,092 - 1,338,092
TORCA - 122,592 122,592 - 122,592
Vehicle Management 3,667,678 4,864,226 8,531,904 10,264,552 18,796,456 Wastewater 3,502,622 13,086,478 16,589,100 7,104,497 23,693,597 Water 9,089,753 21,021,385 30,111,138 16,525,714 46,636,852 SUBTOTAL $ 395,152,496 $ 312,875,007 $ 708,027,503 $ 116,869,252 $ 824,896,755 Reimbursements and Transfers (71,234,507) (12,789,547) (84,024,054) GRAND TOTAL $ 395,152,496 $ 312,875,007 $ 636,792,996 $ 104,079,705 $ 740,872,701 FY 2023-24 Expenditure Summary by Fund

7.A.a
Packet Pg. 131 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 93 FY 2023-25 PROPOSED BIENNIAL BUDGET
EXPENDITURES - EXPENDITURE SUMMARY BY FUND (FY 2024-25) Fund Salaries and
Wages
Supplies and
Expenses Operating Total Capital Improvements Budget Total General $ 298,297,455 $ 145,308,281 $ 443,605,736 $ 14,989,229 $ 458,594,965 Airport 2,644,956 8,935,151 11,580,107 13,031,089 24,611,196 Beach Recreation 5,778,395 10,180,301 15,958,696 1,297,020 17,255,716 Big Blue Bus 63,986,742 24,809,974 88,796,716 5,341,550 94,138,266 Cemetery 1,022,590 1,231,511 2,254,101 81,793 2,335,894 Citizens Op for Public Safety - 109,094 109,094 - 109,094 Clean Beaches/Ocean Parcel Tax - 4,623,150 4,623,150 8,050,000 12,673,150 Community Development Block Grants - 452,289 452,289 - 452,289 Gas Tax - 2,688,969 2,688,969 2,000,000 4,688,969
Housing Authority 2,328,336 28,099,888 30,428,224 12,371 30,440,595 Info Tech Replacement and Services - - - 2,956,300 2,956,300 Local Return - 1,576,456 1,576,456 5,500,000 7,076,456
Low/Mod Income Housing Asset - 389,364 389,364 - 389,364 Miscellaneous Grants - 741,092 741,092 350,000 1,091,092 Parking Authority 900 - 900 - 900
Pier 2,717,725 2,160,674 4,878,399 5,333,787 10,212,186 Resource Recovery & Recycling 14,647,144 19,990,990 34,638,134 4,220,527 38,858,661 Self-Insurance, Bus - 5,391,090 5,391,090 - 5,391,090
Self-Insurance, Comprehensive - 10,094,358 10,094,358 - 10,094,358 Self-Insurance, Risk Management Admin 2,183,688 3,314,852 5,498,540 34,188 5,532,728 Self-Insurance, Workers' Comp - 15,961,548 15,961,548 - 15,961,548 Special Revenue Source - (4,119,154) (4,119,154) 3,245,000 (874,154) Stormwater - 1,431,365 1,431,365 - 1,431,365
TORCA - 122,714 122,714 - 122,714
Vehicle Management 3,832,342 5,235,822 9,068,164 5,960,302 15,028,466 Wastewater 3,631,596 14,614,956 18,246,552 7,645,797 25,892,349 Water 9,506,770 21,917,263 31,424,033 18,693,414 50,117,447 SUBTOTAL $ 410,578,639 $ 325,261,998 $ 735,840,637 $ 98,742,367 $ 834,583,004 Reimbursements and Transfers (75,273,625) (12,865,947) (88,139,572) GRAND TOTAL $ 410,578,639 $ 325,261,998 $ 660,567,012 $ 85,876,420 $ 746,443,432 FY 2024-25 Expenditure Summary by Fund

7.A.a
Packet Pg. 132 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 94 FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES - FIVE-YEAR EXPENDITURE SUMMARY
(1) (2) (3) (4) (5) (6) (7)

FUND/DEPARTMENT BUDGET UNIT
Operating Budget
City Council $ 794,460 $ 805,104 $ 893,672 $ 887,090 $ (6,582) -0.7% $ 934,133 City Manager 10,851,646 11,111,210 12,039,016 13,064,576 1,025,560 8.5% 13,620,975 City Attorney 11,298,628 11,875,744 12,566,694 13,044,443 477,749 3.8% 13,671,033 Records & Elections Services 3,240,089 2,517,564 3,534,871 2,848,348 (686,523) -14.3% 3,739,923 Community Development 15,214,406 14,740,602 17,386,179 18,578,147 1,191,968 6.9% 19,480,317 Community Services 23,948,999 25,716,118 29,412,863 - (29,412,863) -100.0% - Finance 11,496,940 11,127,938 12,203,965 12,708,374 504,409 4.1% 13,272,109 Fire Dept 45,572,620 48,479,262 51,578,309 52,963,821 1,385,512 2.7% 54,848,610 Housing & Human Services - - - 22,914,918 22,914,918 N/A 23,098,338 Human Resources 4,970,360 4,950,668 5,944,373 6,308,341 363,968 6.1% 6,575,105 Information Services 9,058,675 8,935,338 10,507,148 12,974,857 2,467,709 23.5% 13,591,029 Library 8,712,984 8,673,550 10,359,730 10,986,687 626,957 6.1% 11,511,299 Police Dept 96,395,653 96,096,806 108,727,934 113,191,099 4,463,165 4.1% 117,660,552 Public Works 41,729,702 45,252,310 48,504,596 51,358,680 2,854,084 5.9% 54,806,475 Recreation & Arts - - - 10,042,653 10,042,653 N/A 10,420,377 Santa Monica Department of Transportation 20,223,678 22,766,226 24,809,531 24,618,593 (190,938) -0.8% 25,754,093 Departmental Operating Budget 303,508,840 313,048,440 348,468,881 366,490,627 18,021,746 5.2% 382,984,368 Non-Departmental
All Other Transactions 49,756,298 109,536,721 59,242,444 57,184,013 (2,058,431) -3.5% 58,408,664 Non-Departmental Operating Budget 49,756,298 109,536,721 59,242,444 57,184,013 (2,058,431) -3.5% 58,408,664 Operating Budget Subtotal 353,265,138 422,585,161 407,711,325 423,674,640 15,963,315 3.9% 441,393,032 Interfund Transfers (13,496,496) (4,483,102) (491,303) (304,531) 186,772 -38.0% 2,212,704 Operating Budget Total 339,768,642 418,102,059 407,220,022 423,370,109 16,150,087 4.0% 443,605,736 Capital Budget 29,739,471 25,831,983 49,682,852 13,504,429 (36,178,423) -72.8% 14,989,229 Sub-Total 369,508,113 443,934,043 456,902,874 436,874,538 (20,028,336) -4.4% 458,594,965 Less Reappropriated Capital b 36,198,648
Total General Fund $ 369,508,113 $ 443,934,043 $ 420,704,226 $ 436,874,538 $ 16,170,312 3.8% $ 458,594,965 b. Reappropriated Capital represents capital projects fully budgeted in prior fiscal years that are still underway; these are financed using associated fund reserves.

GENERAL FUND
a. FY 2022-23 Revised Budget differs from amounts presented in the Adopted FY 2022-23 City Budget due to Council-approved budget changes throughout the fiscal year.

Five-Year Expenditure Summary
FY 2020-21
Actual
FY 2022-23
Revised
Budget a
FY 2023-24
Proposed
Budget
Change
Amount
(4) - (3)
Change
Percent
(5) / (3)
FY 2024-25
Budget
Plan
FY 2021-22
Actual

7.A.a
Packet Pg. 133 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 95 FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES - FIVE-YEAR EXPENDITURE SUMMARY
(1) (2) (3) (4) (5) (6) (7)

FUND/DEPARTMENT BUDGET UNIT
Five-Year Expenditure Summary
FY 2020-21
Actual
FY 2022-23
Revised
Budget a
FY 2023-24
Proposed
Budget
Change
Amount
(4) - (3)
Change
Percent
(5) / (3)
FY 2024-25
Budget
Plan
FY 2021-22
Actual
Operating Budget 6,879,676 8,190,448 9,626,866 10,377,124 750,258 7.8% 10,919,546 All Other Transactions (Non-Departmental) (2,372) 7,966 22,719 822 (21,897) -96.4% 863 Interfund Transfers 1,873,493 (6,756,108) 682,371 636,960 (45,411) -6.7% 659,698 Capital Budget 2,480,492 3,254,033 29,711,824 8,213,889 (21,497,935) -72.4% 13,031,089 Sub-Total 11,231,288 4,696,338 40,043,780 19,228,795 (20,814,985) -52.0% 24,611,196 Less Reappropriated Capital b 17,064,956
Total Airport Fund $ 11,231,288 $ 4,696,338 $ 22,978,824 $ 19,228,795 $ (3,750,029) -16.3% $ 24,611,196 Operating Budget 124,407 143,733 - - - N/A -
Capital Budget - - 650,000 - (650,000) -100.0% -
Sub-Total 124,407 143,733 650,000 - (650,000) -100.0% - Less Reappropriated Capital b 650,000
Total Asset Seizure Fund $ 124,407 $ 143,733 $ - $ - $ - N/A $ - Operating Budget 13,599,188 14,974,236 16,753,596 17,731,972 978,376 5.8% 18,412,782 All Other Transactions (Non-Departmental) 12,232 17,873 69,005 28,170 (40,835) -59.2% 29,578 Interfund Transfers (2,684,306) 74,238 86,811 (2,614,571) (2,701,382) -3111.8% (2,483,664) Capital Budget 5,032,936 1,012,256 4,158,102 771,720 (3,386,382) -81.4% 1,297,020 Sub-Total 15,960,050 16,078,602 21,067,514 15,917,291 (5,150,223) -24.4% 17,255,716 Less Reappropriated Capital b 2,077,107 -
Total Beach Recreation Fund $ 15,960,050 $ 16,078,602 $ 18,990,407 $ 15,917,291 $ (3,073,116) -16.2% $ 17,255,716 Operating Budget 70,028,137 71,432,883 83,413,414 85,186,756 1,773,342 2.1% 88,629,049 All Other Transactions (Non-Departmental) (158,561) 249,687 735,698 294,733 (440,965) -59.9% 309,469 Interfund Transfers (106,034) (502,923) 38,047 (168,557) (206,604) -543.0% (141,802) Capital Budget 4,745,297 19,245,805 98,922,007 25,477,150 (73,444,857) -74.2% 5,341,550 Sub-Total 74,508,839 90,425,452 183,109,166 110,790,082 (72,319,084) -39.5% 94,138,266 Less Reappropriated Capital b 87,468,329 -
Total Big Blue Bus Fund $ 74,508,839 $ 90,425,452 $ 95,640,837 $ 110,790,082 $ 15,149,245 15.8% $ 94,138,266

BEACH RECREATION FUND

AIRPORT FUND

BIG BLUE BUS FUND

ASSET SEIZURE FUND

7.A.a
Packet Pg. 134 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 96 FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES - FIVE-YEAR EXPENDITURE SUMMARY
(1) (2) (3) (4) (5) (6) (7)

FUND/DEPARTMENT BUDGET UNIT
Five-Year Expenditure Summary
FY 2020-21
Actual
FY 2022-23
Revised
Budget a
FY 2023-24
Proposed
Budget
Change
Amount
(4) - (3)
Change
Percent
(5) / (3)
FY 2024-25
Budget
Plan
FY 2021-22
Actual
Operating Budget 2,231,578 2,397,083 2,526,164 2,504,463 (21,701) -0.9% 2,629,761 All Other Transactions (Non-Departmental) (24,589) (20,785) 25,762 - (25,762) -100.0% - Interfund Transfers (536,748) (483,094) (385,071) (375,716) 9,355 -2.4% (375,660) Capital Budget 69,752 385,143 279,455 249,093 (30,362) -10.9% 81,793 Sub-Total 1,739,993 2,278,347 2,446,310 2,377,840 (68,470) -2.8% 2,335,894 Less Reappropriated Capital b 35,122 -
Total Cemetery Fund $ 1,739,993 $ 2,278,347 $ 2,411,188 $ 2,377,840 $ (33,348) -1.4% $ 2,335,894 Operating Budget 326,973 12,754 104,858 106,955 2,097 2.0% 109,094 Sub-Total 326,973 12,754 104,858 106,955 2,097 2.0% 109,094 Less Reappropriated Capital b - -
Total COPS Fund $ 326,973 $ 12,754 $ 104,858 $ 106,955 $ 2,097 2.0% $ 109,094 Operating Budget 533,931 527,130 781,378 799,020 17,642 2.3% 816,097 All Other Transactions (Non-Departmental) - - 5,223 - (5,223) -100.0% - Interfund Transfers (13,827,237) 1,239,933 2,750,768 4,778,277 2,027,509 73.7% 3,807,053 Capital Budget 21,396,441 1,805,856 9,987,633 3,260,000 (6,727,633) -67.4% 8,050,000 Sub-Total 8,103,135 3,572,919 13,525,002 8,837,297 (4,687,705) -34.7% 12,673,150 Less Reappropriated Capital b 9,187,633 -
Total Clean Beaches & Ocean Parcel Tax Fund $ 8,103,135 $ 3,572,919 $ 4,337,369 $ 8,837,297 $ 4,499,928 103.7% $ 12,673,150 Operating Budget 1,768,351 2,374,927 2,163,899 - (2,163,899) -100.0% - All Other Transactions (Non-Departmental) (22) 3,037 80,247 - (80,247) -100.0% - Interfund Transfers 222,000 822,000 222,000 - (222,000) -100.0% - Capital Budget 1,267,277 294,273 1,728 - (1,728) -100.0% - Sub-Total 3,257,606 3,494,236 2,467,874 - (2,467,874) -100.0% - Less Reappropriated Capital b 1,728 -
Total Community Broadband Fund $ 3,257,606 $ 3,494,236 $ 2,466,146 $ - $ (2,466,146) -100.0% $ - Operating Budget 3,280,212 248,877 201,268 205,293 4,025 2.0% 209,399 All Other Transactions (Non-Departmental) 45,853 24,168 107,065 159,206 52,141 48.7% 111,390 Interfund Transfers 237,618 125,334 140,000 130,000 (10,000) -7.1% 131,500 Capital Budget 77,004 44,164 1,668,529 1,050,000 (618,529) -37.1% - Sub-Total 3,640,688 442,543 2,116,862 1,544,499 (572,363) -27.0% 452,289 Less Reappropriated Capital b 742,829 -
Total CDBG Fund $ 3,640,688 $ 442,543 $ 1,374,033 $ 1,544,499 $ 170,466 12.4% $ 452,289

COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) FUND

COPS FUND

CLEAN BEACHES & OCEAN PARCEL TAX FUND

CEMETERY FUND

COMMUNITY BROADBAND FUND

7.A.a
Packet Pg. 135 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 97 FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES - FIVE-YEAR EXPENDITURE SUMMARY
(1) (2) (3) (4) (5) (6) (7)

FUND/DEPARTMENT BUDGET UNIT
Five-Year Expenditure Summary
FY 2020-21
Actual
FY 2022-23
Revised
Budget a
FY 2023-24
Proposed
Budget
Change
Amount
(4) - (3)
Change
Percent
(5) / (3)
FY 2024-25
Budget
Plan
FY 2021-22
Actual
All Other Transactions (Non-Departmental) 4,951 5,013 5,261 5,366 105 2.0% 5,474 Interfund Transfers 1,996,179 2,169,917 2,681,020 2,627,106 (53,914) -2.0% 2,683,495 Capital Budget 658,871 1,323,914 6,480,426 2,300,000 (4,180,426) -64.5% 2,000,000 Sub-Total 2,660,002 3,498,844 9,166,707 4,932,472 (4,234,235) -46.2% 4,688,969 Less Reappropriated Capital b 4,280,426 -
Total Gas Tax Fund $ 2,660,002 $ 3,498,844 $ 4,886,281 $ 4,932,472 $ 46,191 0.9% $ 4,688,969 Operating Budget 24,242,724 25,267,146 27,517,034 29,586,947 2,069,913 7.5% 30,074,327 Interfund Transfers (129,000) (92,355) (65,258) 239,152 304,410 -466.5% 353,897 Capital Budget 12,371 12,371 12,371 12,371 - 0.0% 12,371 Sub-Total 24,126,095 25,187,162 27,464,147 29,838,470 2,374,323 8.6% 30,440,595 Less Reappropriated Capital b - -
Total Housing Authority Fund $ 24,126,095 $ 25,187,162 $ 27,464,147 $ 29,838,470 $ 2,374,323 8.6% $ 30,440,595 Capital Budget 2,208,238 1,923,347 4,003,038 2,895,400 (1,107,638) -27.7% 2,956,300 Sub-Total 2,208,238 1,923,347 4,003,038 2,895,400 (1,107,638) -27.7% 2,956,300 Less Reappropriated Capital b 1,167,138 -
Total Info Tech Replacement & Services Fund $ 2,208,238 $ 1,923,347 $ 2,835,900 $ 2,895,400 $ 59,500 2.1% $ 2,956,300 Operating Budget 272,238 326,327 494,538 600,429 105,891 21.4% 610,518 Interfund Transfers 550,700 684,378 738,000 965,938 227,938 30.9% 965,938 Capital Budget 1,830,051 3,784,435 14,322,806 8,585,200 (5,737,606) -40.1% 5,500,000 Sub-Total 2,652,989 4,795,140 15,555,344 10,151,567 (5,403,777) -34.7% 7,076,456 Less Reappropriated Capital b 11,114,806 -
Total Local Return Fund $ 2,652,989 $ 4,795,140 $ 4,440,538 $ 10,151,567 $ 5,711,029 128.6% $ 7,076,456 All Other Transactions (Non-Departmental) 43 112 - - - N/A - Interfund Transfers (3,697,398) 362,715 372,657 389,364 16,707 4.5% 389,364 Sub-Total (3,697,355) 362,827 372,657 389,364 16,707 4.5% 389,364 Less Reappropriated Capital b -
Total Low & Mod Income Housing Asset Fund $ (3,697,355) $ 362,827 $ 372,657 $ 389,364 $ 16,707 4.5% $ 389,364

HOUSING AUTHORITY FUND

GAS TAX FUND

LOCAL RETURN FUND

LOW AND MODERATE INCOME HOUSING ASSET FUND

INFORMATION TECHNOLOGY REPLACEMENT & SERVICES FUND

7.A.a
Packet Pg. 136 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 98 FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES - FIVE-YEAR EXPENDITURE SUMMARY
(1) (2) (3) (4) (5) (6) (7)

FUND/DEPARTMENT BUDGET UNIT
Five-Year Expenditure Summary
FY 2020-21
Actual
FY 2022-23
Revised
Budget a
FY 2023-24
Proposed
Budget
Change
Amount
(4) - (3)
Change
Percent
(5) / (3)
FY 2024-25
Budget
Plan
FY 2021-22
Actual
Operating Budget 3,667,533 3,510,077 6,592,488 2,929,489 (3,662,999) -55.6% 578,349 Interfund Transfers 17,156,546 15,710,876 157,144 162,743 5,599 3.6% 162,743 Capital Budget 5,704,780 6,861,242 40,143,596 4,880,735 (35,262,861) -87.8% 350,000 Sub-Total 26,528,859 26,082,194 46,893,228 7,972,967 (38,920,261) -83.0% 1,091,092 Less Reappropriated Capital b 21,616,810
Total Miscellaneous Grants Fund $ 26,528,859 $ 26,082,194 $ 25,276,418 $ 7,972,967 $ (17,303,451) -68.5% $ 1,091,092 Operating Budget 1,050 1,000 900 900 - 0.0% 900
Interfund Transfers 10,998,895 - - - - N/A -
Capital Budget 1,707,582 56,471 352,624 - (352,624) -100.0% - Sub-Total 12,707,527 57,471 353,524 900 (352,624) -99.7% 900 Less Reappropriated Capital b 352,624
Total Parking Authority Fund $ 12,707,527 $ 57,471 $ 900 $ 900 $ - 0.0% $ 900 Capital Budget 28,841 164,742 136,542 - (136,542) -100.0% - Sub-Total 28,841 164,742 136,542 - (136,542) -100.0% -
Less Reappropriated Capital b 136,542
Total Parks & Recreation Fund $ 28,841 $ 164,742 $ - $ - $ - N/A $ - Operating Budget 5,715,185 6,504,664 7,506,557 7,740,459 233,902 3.1% 8,438,864 All Other Transactions (Non-Departmental) 717,176 (3,147) 73,603 9,445 (64,158) -87.2% 9,917 Interfund Transfers (2,796,326) (3,411,613) (2,814,738) (585,734) 2,229,004 -79.2% (3,570,382) Capital Budget 2,419,132 5,115,568 6,027,179 4,883,787 (1,143,392) -19.0% 5,333,787 Sub-Total 6,055,166 8,205,472 10,792,601 12,047,957 1,255,356 11.6% 10,212,186 Less Reappropriated Capital b 1,288,318
Total Pier Fund $ 6,055,166 $ 8,205,472 $ 9,504,283 $ 12,047,957 $ 2,543,674 26.8% $ 10,212,186 Operating Budget 24,136,745 25,364,189 28,470,181 31,999,385 3,529,204 12.4% 33,336,672 All Other Transactions (Non-Departmental) (110,241) 9,688 250,693 89,704 (160,989) -64.2% 94,189 Interfund Transfers 231,217 272,312 1,141,235 1,185,175 43,940 3.9% 1,207,273 Capital Budget 3,429,941 4,044,144 6,805,727 4,113,227 (2,692,500) -39.6% 4,220,527 Sub-Total 27,687,663 29,690,333 36,667,836 37,387,491 719,655 2.0% 38,858,661 Less Reappropriated Capital b 2,239,141
Total Resource Recovery & Recycling Fund $ 27,687,663 $ 29,690,333 $ 34,428,695 $ 37,387,491 $ 2,958,796 8.6% $ 38,858,661

PIER FUND

PARKS AND RECREATION FUND

PARKING AUTHORITY FUND

RESOURCE RECOVERY & RECYCLING FUND

MISCELLANEOUS GRANTS FUND

7.A.a
Packet Pg. 137 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 99 FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES - FIVE-YEAR EXPENDITURE SUMMARY
(1) (2) (3) (4) (5) (6) (7)

FUND/DEPARTMENT BUDGET UNIT
Five-Year Expenditure Summary
FY 2020-21
Actual
FY 2022-23
Revised
Budget a
FY 2023-24
Proposed
Budget
Change
Amount
(4) - (3)
Change
Percent
(5) / (3)
FY 2024-25
Budget
Plan
FY 2021-22
Actual
Operating Budget 3,980,887 3,271,764 3,157,535 4,260,936 1,103,401 34.9% 4,919,717 Interfund Transfers 328,722 339,779 309,414 448,994 139,580 45.1% 471,373 Sub-Total 4,309,608 3,611,543 3,466,949 4,709,930 1,242,981 35.9% 5,391,090 Less Reappropriated Capital b -
Total Self-Insurance, Bus Fund $ 4,309,608 $ 3,611,543 $ 3,466,949 $ 4,709,930 $ 1,242,981 35.9% $ 5,391,090 Operating Budget 63,508,418 14,872,117 5,739,311 8,056,782 2,317,471 40.4% 9,432,411 Interfund Transfers 504,600 502,192 487,682 625,451 137,769 28.2% 661,947 Sub-Total 64,013,018 15,374,309 6,226,993 8,682,233 2,455,240 39.4% 10,094,358 Less Reappropriated Capital b -
Total Self-Insurance, Comprehensive Fund $ 64,013,018 $ 15,374,309 $ 6,226,993 $ 8,682,233 $ 2,455,240 39.4% $ 10,094,358 Operating Budget 5,450,147 6,407,654 7,890,188 8,206,906 316,718 4.0% 8,461,320 All Other Transactions (Non-Departmental) (7,321) 14,033 41,851 23,697 (18,154) -43.4% 24,882 Interfund Transfers (1,992,253) (2,059,268) (2,053,007) (2,846,696) (793,689) 38.7% (2,987,662) Capital Budget 92,732 32,433 34,148 34,188 40 0.1% 34,188 Sub-Total 3,543,305 4,394,852 5,913,180 5,418,095 (495,085) -8.4% 5,532,728 Less Reappropriated Capital b -
Total Self-Insurance, Risk Mgmt Admin Fund $ 3,543,305 $ 4,394,852 $ 5,913,180 $ 5,418,095 $ (495,085) -8.4% $ 5,532,728 Operating Budget 13,626,153 9,495,815 13,097,563 13,703,476 605,913 4.6% 14,047,485 Interfund Transfers 1,334,810 1,379,710 1,315,011 1,823,182 508,171 38.6% 1,914,063 Sub-Total 14,960,962 10,875,524 14,412,574 15,526,658 1,114,084 7.7% 15,961,548 Less Reappropriated Capital b -
Total Self-Insurance, Workers' Comp Fund $ 14,960,962 $ 10,875,524 $ 14,412,574 $ 15,526,658 $ 1,114,084 7.7% $ 15,961,548 All Other Transactions (Non-Departmental) 7,317 7,463 - - - N/A - Capital Budget - 274,122 842,161 112,000 (730,161) -86.7% - Sub-Total 7,317 281,585 842,161 112,000 (730,161) -86.7% - Less Reappropriated Capital b 190,161
Total SCAQMD AB 2766 Fund $ 7,317 $ 281,585 $ 652,000 $ 112,000 $ (540,000) -82.8% $ - SCAQMD AB 2766 FUND

SELF-INSURANCE, COMPREHENSIVE FUND

SELF-INSURANCE, BUS FUND

SELF-INSURANCE, RISK MANAGEMENT ADMINISTRATION FUND

SELF-INSURANCE, WORKERS' COMPENSATION FUND

7.A.a
Packet Pg. 138 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 100
FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES - FIVE-YEAR EXPENDITURE SUMMARY
(1) (2) (3) (4) (5) (6) (7)

FUND/DEPARTMENT BUDGET UNIT
Five-Year Expenditure Summary
FY 2020-21
Actual
FY 2022-23
Revised
Budget a
FY 2023-24
Proposed
Budget
Change
Amount
(4) - (3)
Change
Percent
(5) / (3)
FY 2024-25
Budget
Plan
FY 2021-22
Actual
Operating Budget 2,173,132 2,505,412 3,493,499 2,696,797 (796,702) -22.8% 2,658,733 Interfund Transfers (13,726,217) (7,916,973) (7,080,326) (6,761,732) 318,594 -4.5% (6,777,887) Capital Budget 3,590,370 1,921,253 12,996,323 2,631,300 (10,365,023) -79.8% 3,245,000 Sub-Total (7,962,714) (3,490,307) 9,409,496 (1,433,635) (10,843,131) -115.2% (874,154) Less Reappropriated Capital b 8,558,665
Total Special Revenue Source Fund $ (7,962,714) $ (3,490,307) $ 850,831 $ (1,433,635) $ (2,284,466) -268.5% $ (874,154) All Other Transactions (Non-Departmental) 9,166 36,719 185,245 37,429 (147,816) -79.8% 38,178 Interfund Transfers 740,125 1,335,657 1,136,504 1,300,663 164,159 14.4% 1,393,187 Capital Budget - 434,729 3,253,122 - (3,253,122) -100.0% - Sub-Total 749,292 1,807,106 4,574,871 1,338,092 (3,236,779) -70.8% 1,431,365 Less Reappropriated Capital b 3,253,122
Total Stormwater Management Fund $ 749,292 $ 1,807,106 $ 1,321,749 $ 1,338,092 $ 16,343 1.2% $ 1,431,365 Operating Budget 3,511 39 6,000 6,120 120 2.0% 6,242
All Other Transactions (Non-Departmental) 188 59,491 - - - N/A - Interfund Transfers 51,645 118,647 86,268 116,472 30,204 35.0% 116,472 Capital Budget 63,290 1,344,226 1,919,349 - (1,919,349) -100.0% - Sub-Total 118,635 1,522,404 2,011,617 122,592 (1,889,025) -93.9% 122,714 Less Reappropriated Capital b 1,919,349
Total TORCA Fund $ 118,635 $ 1,522,404 $ 92,268 $ 122,592 $ 30,324 32.9% $ 122,714 Operating Budget 6,979,583 7,476,720 7,810,000 8,500,053 690,053 8.8% 9,034,771 All Other Transactions (Non-Departmental) (30,187) 6,292 57,956 27,161 (30,795) -53.1% 28,519 Interfund Transfers 60,833 63,311 58,960 4,690 (54,270) -92.0% 4,874 Capital Budget 2,411,473 1,619,728 27,564,735 10,264,552 (17,300,183) -62.8% 5,960,302 Sub-Total 9,421,702 9,166,052 35,491,651 18,796,456 (16,695,195) -47.0% 15,028,466 Less Reappropriated Capital b 21,272,373
Total Vehicle Management Fund $ 9,421,702 $ 9,166,052 $ 14,219,278 $ 18,796,456 $ 4,577,178 32.2% $ 15,028,466

STORMWATER MANAGEMENT FUND

TORCA FUND

SPECIAL REVENUE SOURCE FUND

VEHICLE MANAGEMENT FUND

7.A.a
Packet Pg. 139 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 101
FY 2023-25 PROPOSED BIENNIAL BUDGET

EXPENDITURES - FIVE-YEAR EXPENDITURE SUMMARY
(1) (2) (3) (4) (5) (6) (7)

FUND/DEPARTMENT BUDGET UNIT
Five-Year Expenditure Summary
FY 2020-21
Actual
FY 2022-23
Revised
Budget a
FY 2023-24
Proposed
Budget
Change
Amount
(4) - (3)
Change
Percent
(5) / (3)
FY 2024-25
Budget
Plan
FY 2021-22
Actual
Operating Budget 12,105,397 10,281,690 19,026,148 20,257,741 1,231,593 6.5% 20,990,886 All Other Transactions (Non-Departmental) (5,592) 24,083 65,667 17,978 (47,689) -72.6% 18,877 Interfund Transfers 14,947,487 (552,236) (1,333,692) (3,686,619) (2,352,927) 176.4% (2,763,211) Capital Budget 21,856,073 27,652,067 29,721,555 7,104,497 (22,617,058) -76.1% 7,645,797 Sub-Total 48,903,365 37,405,603 47,479,678 23,693,597 (23,786,081) -50.1% 25,892,349 Less Reappropriated Capital b 20,482,974
Total Wastewater Fund $ 48,903,365 $ 37,405,603 $ 26,996,704 $ 23,693,597 $ (3,303,107) -12.2% $ 25,892,349 Operating Budget 23,939,408 26,940,310 29,263,479 28,757,240 (506,239) -1.7% 30,030,738 All Other Transactions (Non-Departmental) (15,225) 65,500 104,078 46,827 (57,251) -55.0% 49,169 Interfund Transfers 1,221,097 428,007 1,246,822 1,307,071 60,249 4.8% 1,344,126 Capital Budget 18,995,441 35,190,547 107,660,161 16,525,714 (91,134,447) -84.7% 18,693,414 Sub-Total 44,140,721 62,624,364 138,274,540 46,636,852 (91,637,688) -66.3% 50,117,447 Less Reappropriated Capital b 91,091,123
Total Water Fund $ 44,140,721 $ 62,624,364 $ 47,183,417 $ 46,636,852 $ (546,565) -1.2% $ 50,117,447 Operating Budget 592,083,404 555,575,433 624,105,745 650,705,870 26,600,125 4.3% 677,332,029 All Other Transactions (Non-Departmental) 50,199,114 110,043,914 61,072,517 57,924,551 (3,147,966) -5.2% 59,129,169 Interfund Transfers (536,048) (628,665) (572,681) (602,918) (30,237) 5.3% (620,561) Capital Budget 129,817,856 143,628,851 457,337,994 116,869,252 (340,468,742) -74.4% 98,742,367 Sub-Total 771,564,326 808,619,533 1,141,943,575 824,896,755 (317,046,820) -27.8% 834,583,004 Less Reappropriated Capital b 342,389,925
Total All Funds 771,564,326 808,619,533 799,553,650 824,896,755 $ 25,343,105 3.2% 834,583,004 Less Reimbursements and Transfers
Operating (74,609,839) (123,891,790) (73,738,776) (71,234,507) 2,504,269 -3.4% (75,273,625) Capital (4,339,332) (8,018,452) (12,230,656) (12,789,547) (558,891) 4.6% (12,865,947) GRAND TOTAL $ 692,615,154 $ 676,709,291 $ 713,584,218 $ 740,872,701 $ 27,288,483 3.8% $ 746,443,432

WASTEWATER FUND

WATER FUND

ALL FUNDS

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Packet Pg. 140 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES

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Packet Pg. 141 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 102
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - CITY COUNCIL

CITY COUNCIL
The mission of the City Council is to adopt
legislation and provide direction to the
administration of the City and to promote
the best interests of the community locally
and with other governmental agencies.

DEPARTMENT RESOURCES
City Council

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 481,653 $ 478,803 $ 607,952 $ 595,654 $ 636,868 Supplies and Expenses 312,807 326,301 285,720 291,436 297,265 Subtotal 794,460 805,104 893,672 887,090 934,133
Total All Funds
Salaries and Wages 481,653 478,803 607,952 595,654 636,868 Supplies and Expenses 312,807 326,301 285,720 291,436 297,265 Total Department $ 794,460 $ 805,104 $ 893,672 $ 887,090 $ 934,133 This section presents a description of each department, its mission and the services provided by its divisions. It identifies how department projects, programs, and initiatives align with and contribute to positive outcomes. It also identifies the divisional expenditure budget and related positions.

City Council

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 1.0 2.0 2.0 2.0 2.0
Temporary Staffing 0.0 0.0 0.0 0.0 0.0
Total Personnel & Staffing 1.0 2.0 2.0 2.0 2.0

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Packet Pg. 142 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 103
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - CITY COUNCIL

SERVICE BY DIVISION
The City Council provides leadership in establishing policies for the conduct of municipal affairs while acting as the principal policymakers for the City; oversees the delivery of basic City services; formulates community priorities for allocation of City resources; and holds regularly scheduled meetings, hearings, and study sessions to receive citizens’ input and conduct City business in a public forum. Staff manages constituent services and the City’s legislative and intergovernmental affairs programs and provides Council members with scheduling, communications and other administrative support.

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Packet Pg. 143 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 104
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - CITY MANAGER

CITY MANAGER
The City Manager’s Office leads the team
of City departments and staff to implement
the Council’s vision based on Council
priorities and direction. The Department’s
mission is to foster collaboration and
innovation across the City, guided by
the values of accountability, equity,
inclusion, innovation, resilience, safety, and
stewardship.

DEPARTMENT RESOURCES
CMO

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 9,047,380 $ 9,416,183 $ 9,939,320 $ 10,618,911 $ 11,122,998 Supplies and Expenses 1,804,267 1,695,026 2,099,696 2,445,665 2,497,977 Subtotal 10,851,647 11,111,209 12,039,016 13,064,576 13,620,975 Miscellaneous Grants Fund
Supplies and Expenses 483,039 14 565,000 - -
Subtotal 483,039 14 565,000 - -
Total All Funds
Salaries and Wages 9,047,380 9,416,183 9,939,320 10,618,911 11,122,998 Supplies and Expenses 2,287,306 1,695,040 2,664,696 2,445,665 2,497,977 Total Department $ 11,334,686 $ 11,111,223 $ 12,604,016 $ 13,064,576 $ 13,620,975 CMO

7.A.a
Packet Pg. 144 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 105
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - CITY MANAGER

SERVICE BY DIVISION

ADMINISTRATION
The Administration Division is responsible for supporting the departments in their efforts to provide efficient and cost-effective City programs and policies. The division oversees major City-initiated projects, coordinates policy development, advocates for City priorities and programs, provides guidance on the annual budget process, and manages the City Council agendas. In addition to these functions, the Administration Division houses five teams:
• 311 Customer Service provides centralized customer response for all non-public safety services via in person, phone, web and mobile app in multiple languages; • Community Partnerships manages relationships with key City partners, including Santa Monica Travel and Tourism, the We Are Santa Monica Fund, and others;
• Diversity, Equity and Inclusion works to advance racial equity and social diversity to improve the wellbeing of people who live, work, play, and do business in our City; • Public Information administers Citywide strategic outreach via digital and print media, manages media relations and outreach, covers government meetings and produces City videos; and • Policy and Legislative Affairs advances the Council’s legislative platform through work with City lobbyists and supports the development of City policy recommendations supporting Council priorities.

OFFICE OF EMERGENCY MANAGEMENT
The Office of Emergency Management (OEM) is responsible for the City’s emergency response and planning efforts
including mitigation, preparedness, response, and recovery to community-wide hazards and disaster events. OEM
is made up of two divisions. The Emergency Services
Division implements extensive disaster planning, training, and proactive community-based disaster preparedness
programs to ensure that the City of Santa Monica is a
disaster resilient community. Emergency Services also
oversees the operation of the City’s Emergency Operation Center (EOC). The Public Safety Communications Division is responsible for providing communications services to the police and fire departments, including answering 911 and non-emergency telephone calls, dispatching public safety resources, and providing emergency medical dispatch
services.

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Packet Pg. 145 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 106
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - CITY ATTORNEY

CITY ATTORNEY
The City Attorney’s Office provides the City
Council, City Manager, City Clerk, and staff
with the highest quality legal services. The
services the office provides are objective,
timely, comprehensive, vigorous, and fair.

Prosecutors diligently, compassionately,
and justly enforce the law on behalf of
the People of the State of California. In all
functions, the office is ethical and costeffective in promoting the community's interests in equity, justice, and fairness.

DEPARTMENT RESOURCES
CAO

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 10,336,488 $ 10,812,356 $ 11,716,568 $ 12,286,477 $ 12,886,110 Supplies and Expenses 962,140 1,063,389 850,126 757,966 784,923 Subtotal 11,298,628 11,875,745 12,566,694 13,044,443 13,671,033 Total All Funds
Salaries and Wages 10,336,488 10,812,356 11,716,568 12,286,477 12,886,110 Supplies and Expenses 962,140 1,063,389 850,126 757,966 784,923 Total Department $ 11,298,628 $ 11,875,745 $ 12,566,694 $ 13,044,443 $ 13,671,033 CAO

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 42.0 43.0 44.0 44.0 44.0
Temporary Staffing 0.5 0.5 0.5 0.5 0.5
Total Personnel & Staffing 42.5 43.5 44.5 44.5 44.5

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Packet Pg. 146 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 107

SERVICE BY DIVISION

ADMINISTRATION
The Administrative Unit supports the work of the entire office. Among other things, administrative staff manage the office budget; manage procurement, city wide legal contracts and invoices; handle office personnel matters; recruiting, onboarding, offboarding; manage technology including hardware, software, and the City website; manage facilities and supplies; and manage the City Attorney's Office's (CAO) ongoing response to health and safety issues.

LITIGATION
The work of the Litigation Unit is as varied and complex as the City’s operations. The unit defends the City in state and federal court lawsuits covering nearly every aspect of the operations of Big Blue Bus, Public Works, Community Development, Community Services, Human Resources, Police, and Fire Departments, and more. Litigators work closely with City staff, shepherding employees through the legal process from discovery to trial and appeal. The unit also initiates litigation to obtain monetary recovery for the City from third party individuals and entities. While civil lawsuits focus on past events, the unit also works closely with Risk Management to provide preventive legal advice based on experience. Lawyers make recommendations with the goal of improving safety and reducing claims.

CRIMINAL PROSECUTION
The Criminal Prosecution Unit represents the
People in misdemeanor criminal matters, many
of which used to be considered felony crimes.

Prosecuted offenses range from Penal Code
violations, such as driving under the influence,
assault, theft, and domestic violence, to local
infractions. Most cases are referred by the Santa
Monica Police Department, but cases also come
from other City departments and public agencies.

The unit assists victims of crime (especially victims
of domestic violence) by providing support prior
to and in court proceedings, connecting victims
to available resources, and processing restitution
payments. The unit also staffs the City's drug,
mental illness, and homeless courts, which are
diversion programs designed to address and
remedy underlying causes of unlawful conduct with
a focus on racial equity within the justice system.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - CITY ATTORNEY

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Packet Pg. 147 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 108
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - CITY ATTORNEY

ADVISORY
The Advisory Unit provides legal advice on a wide range of issues to the City Council, the City’s boards and commissions, the Emergency Operations, and all City staff. The unit drafts and reviews emergency orders, ordinances, resolutions, contracts, leases, memos, and other legal documents. The unit also handles land use, constitutional, and other specialized litigation, including appeals; and oversees personnel issues and investigations.

CONSUMER PROTECTION
The Consumer Protection Unit brings affirmative
litigation to address violations of consumer protection and fair housing laws, including federal, state, and
local laws that prohibit housing discrimination, protect tenants against harassment and other unlawful
conduct, and protect consumers against fraud and
unfair business practices. The unit also prosecutes
code violations, handling administrative appeals and
pursuing criminal actions. The unit enforces state
and local emergency eviction laws; building and fire
codes; state and local laws regulating nuisances,
contractors, massage businesses, and alcohol serving
establishments; zoning; historic resources; signs;
minimum wage; business licensing; and tenant
relocation. The unit educates the community on their
legal rights. The unit also handles responses to Public Records Act requests.

PERFORMANCE MEASURES BY

FRAMEWORK OUTCOME

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - RECORDS AND ELECTION SERVICES (CITY CLERK)

RECORDS AND ELECTION

SERVICES (CITY CLERK)
The mission of the City Clerk is to serve as
the City Elections Official, Political Reform
Filing Officer, and Compliance Officer for
the Public Records Act, Brown Act, and local
statutes. The City Clerk’s Office facilitates
the democratic process by conducting
City elections for voters and candidates. It
provides support to the City Council and
records Council proceedings; manages the
City’s records and coordinates responses
to public requests for information; accepts
federal passport applications; provides
mail and printing services to internal
departments; and cost-effectively carries out
all programs of this office.

DEPARTMENT RESOURCES
RES

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 1,767,883 $ 1,889,962 $ 1,959,506 $ 2,064,362 $ 2,166,381 Supplies and Expenses 1,472,206 627,603 1,575,365 783,986 1,573,542 Subtotal 3,240,089 2,517,565 3,534,871 2,848,348 3,739,923 Total All Funds
Salaries and Wages 1,767,883 1,889,962 1,959,506 2,064,362 2,166,381 Supplies and Expenses 1,472,206 627,603 1,575,365 783,986 1,573,542 Total Department $ 3,240,089 $ 2,517,565 $ 3,534,871 $ 2,848,348 $ 3,739,923 RES

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 12.0 12.0 12.0 13.0 13.0
Temporary Staffing 0.0 0.0 0.0 0.0 0.0
Total Personnel & Staffing 12.0 12.0 12.0 13.0 13.0

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SERVICE BY DIVISION

ADMINISTRATION
The Administration Division carries out the official duties of the City Clerk as required by local law and the Brown Act (Open Meetings Law), Public Records Act and Political Reform Act. The division prepares and disseminates the City Council meeting agenda and packets; maintains the City’s legislative history for the City Council, Redevelopment Successor Agency, and Public Finance, Housing and Parking Authorities. Additionally, division staff serve as the Board Secretaries of the Audit Subcommittee and Clean Beaches & Ocean Oversight Committee.

The office also maintains the City’s Boards/Commissions Appointments List, Lobbyist Registry and Council’s Oaks Initiative Log; administers the Records Management Program; attests to contracts executed by the City Manager; and serves as a Passport Acceptance Facility.

ELECTIONS
The City Clerk serves as the City’s Elections Official and Filing Officer as required by local and State Election Codes and the State Political Reform Act. The division conducts special municipal elections, coordinates consolidated regular City Council, Rent Control Board, Santa Monica – Malibu Unified School District (SMMUSD) Board and Santa Monica City College (SMCC) Board elections with the Los Angeles County Clerk/Registrar-Recorder, and maintains the official election records. The division is staffed by Administration and Support Services personnel.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - RECORDS AND ELECTION SERVICES (CITY CLERK)

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SUPPORT SERVICES
The Support Services Division provides internal
support to City staff and provides all City
departments with high quality reprographic
services and efficient internal and external mail
service. Support Services personnel also provide
additional staffing for Administration and Election
events.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - RECORDS AND ELECTION SERVICES (CITY CLERK)

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - COMMUNITY DEVELOPMENT

COMMUNITY

DEVELOPMENT
The mission of the Community
Development Department is focused on the
built environment and the encouragement
and expansion of economic opportunities
for businesses and residents. The
department facilitates new investment
and encourages economic activity by
introducing code amendments to streamline
the land use entitlement process and
review for development applications
consistent with the City’s adopted land
use policies. The department ensures
that development projects comply with
applicable standards, project design reflects
the City’s aesthetic character, and historic
resources are protected. The Department
is also responsible for development
review, plan check, building inspections,
code enforcement, implementing City real
estate transactions, promoting economic
sustainability, serving as liaison to the
business districts, managing leasing and
licensing of City property, operating the
Santa Monica Farmers Markets, managing
the Santa Monica Beach and Pier, and
administering the wind-down of the former
Redevelopment Agency.

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DEPARTMENT RESOURCES
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - COMMUNITY DEVELOPMENT
CDD

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 13,161,251 $ 13,502,840 $ 15,200,847 $ 15,553,259 $ 16,364,620 Supplies and Expenses 2,053,155 1,237,762 2,185,332 3,024,888 3,115,697 Subtotal 15,214,406 14,740,602 17,386,179 18,578,147 19,480,317 Beach Fund
Supplies and Expenses 6,435,384 6,912,028 7,443,583 7,908,585 8,142,769 Subtotal 6,435,384 6,912,028 7,443,583 7,908,585 8,142,769 Miscellaneous Grants Fund
Supplies and Expenses 355,607 305,517 1,965,260 - -
Subtotal 355,607 305,517 1,965,260 - -
Pier Fund
Salaries and Wages 334,672 333,899 331,637 370,655 393,595 Supplies and Expenses 1,468,767 1,902,812 2,421,561 2,579,088 3,049,780 Subtotal 1,803,439 2,236,711 2,753,198 2,949,743 3,443,375 Special Revenue Source Fund
Supplies and Expenses 259,474 62,296 - - -
Subtotal 259,474 62,296 - - -
Total All Funds
Salaries and Wages 13,495,923 13,836,739 15,532,484 15,923,914 16,758,215 Supplies and Expenses 10,572,387 10,420,415 14,015,736 13,512,561 14,308,246 Total Department $ 24,068,310 $ 24,257,154 $ 29,548,220 $ 29,436,475 $ 31,066,461 CDD

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 79.2 85.2 84.2 86.2 86.2
Temporary Staffing 0.8 0.8 0.8 0.8 0.8
Total Personnel & Staffing 80.0 86.0 85.0 87.0 87.0

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - COMMUNITY DEVELOPMENT

SERVICE BY DIVISION

ADMINISTRATION
The Administration Division coordinates and manages the Department’s four other divisions: Building and Safety, City Planning, Code Enforcement, and Economic Development. Responsibilities include providing direction and leadership to the Department, coordinating the wind-down of the former Redevelopment Agency's activities, monitoring staff report preparation, coordination of personnel issues, reviewing and coordinating responses to City Council/citizen inquiries, budget preparation and fiscal tracking, coordinating inter-departmental collaborative objectives, coordinating responses to regional planning initiatives, and researching and analyzing data for inclusion in reports and special studies.

BUILDING AND SAFETY
The Building and Safety Division ensures the safe construction and occupancy of buildings by verifying construction compliance with regulated building and fire codes, which is achieved through the application and enforcement of State laws and City ordinances governing the construction, use, and maintenance of structures on private and public property throughout the City. In this capacity, the Building and Safety Division administers Federal, State, and Municipal regulations regarding architectural compliance, structural stability, seismic safety, electrical, mechanical, plumbing, disabled access, energy conservation, green building, and tenant protection during construction. Services provided by the Building and Safety Division include public counter permitting operations, plan review, inspections, and maintenance of permit and construction records. Additionally, the division administers the locally implemented Seismic Retrofit Program, where nearly 2,000 buildings were identified as potentially seismically vulnerable in need of seismic retrofit and required to comply with the Program.

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CITY PLANNING
The City Planning Division develops long-range policies and plans that shape the built environment and public parks of Santa Monica to address community priorities and changing conditions, in addition to administering and implementing City land use and development policies, the zoning ordinance, housing policies, urban design policies, and the historic preservation program. The division coordinates environmental review, development agreement negotiations, community outreach, and maintains and updates existing policy documents such as the City’s General Plan. The Division’s current strategic planning projects include the 2021-2029 Housing Element Update and Local Coastal Program Update. Ongoing multi-year strategic planning projects include the Parks and Recreation Master Plan Update, Landmarks Ordinance Update, Tree Preservation Ordinance, and planning for the conversion of the Santa Monica airport after its closure.

CODE ENFORCEMENT
The Code Enforcement Division ensures that both residents and businesses within the City adhere to Federal, State, and Municipal codes by responding to reported code violations, as well as conducting proactive enforcement.

The division responds to violations involving construction work, substandard housing, noise, and property maintenance. They also investigate planning and zoning violations, including adherence to conditional use permit requirements. The division may take enforcement action to compel compliance, including issuing notices of violation or administrative citations. The Code Enforcement Division strives to form partnerships within the community and routinely participates in educational sessions during local neighborhood meetings.

ECONOMIC DEVELOPMENT
The Economic Development Division is focused on creating a sustainable, equitable and inclusive economy in Santa Monica and continues to lead the Citywide economic recovery effort in response to the economic impacts of the COVID-19 pandemic.

The division manages leasing of the City’s real estate assets including the Airport, Beach, and Pier properties, the Outdoor Dining program, and provides technical assistance to City departments in lease negotiation, property management,
and property reuse and development. The division oversees administration of the Santa Monica Beach and Pier, including management of the multi-departmental funds and coordination with community partners to enhance the visitor experience at the Santa Monica Beach and Municipal Pier, and manages four weekly Santa Monica Farmers Markets. Additionally, the division acts as a liaison and provides technical support to Santa Monica’s several business organizations, including the Santa Monica Alliance, Santa Monica Travel and Tourism, the Buy Local Santa Monica Committee and business improvement districts.

PERFORMANCE MEASURES BY
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - COMMUNITY DEVELOPMENT

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - FINANCE

FINANCE
The mission of the Finance Department is
to provide sound business, financial, and
risk management support to internal and
external customers, ensuring continuation
of public services to the residents, visitors,
and businesses of Santa Monica through
the protection of financial resources.

DEPARTMENT RESOURCES
FIN

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 8,230,681 $ 8,365,208 $ 9,043,123 $ 9,498,814 $ 9,986,363 Supplies and Expenses 3,266,259 2,762,730 3,160,842 3,209,560 3,285,746 Subtotal 11,496,940 11,127,938 12,203,965 12,708,374 13,272,109 Self-insurance, Risk Management Administration Fund
Salaries and Wages 1,535,881 1,590,335 1,856,950 2,041,657 2,158,806 Supplies and Expenses 3,914,266 4,817,319 6,033,238 6,165,249 6,302,514 Subtotal 5,450,147 6,407,654 7,890,188 8,206,906 8,461,320 Total All Funds
Salaries and Wages 9,766,562 9,955,543 10,900,073 11,540,471 12,145,169 Supplies and Expenses 7,180,525 7,580,049 9,194,080 9,374,809 9,588,260 Total Department $ 16,947,087 $ 17,535,592 $ 20,094,153 $ 20,915,280 $ 21,733,429 FIN

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 61.3 64.3 66.3 67.3 67.3
Temporary Staffing 0.0 0.0 0.0 0.5 0.5
Total Personnel & Staffing 61.3 64.3 66.3 67.7 67.7

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SERVICE BY DIVISION

ADMINISTRATION
The Administration Division is responsible for financial strategic planning, providing overall long-range
financial projections, and managing debt issuance and
compliance. In addition, the division is responsible
for directing the Department’s divisions, coordinating
personnel activities, staff reports, budgets and fiscal tracking, and responding to inquiries from the public.

The division also staffs the Audit Subcommittee,
administers the internal audit function, and staffs the Measure CS Advisory Committee.

BUDGET
The Budget Division is responsible for developing and
monitoring the City’s multi-year budget; preparing
the long-term financial forecast and periodic financial status updates; developing and implementing budget
policies, systems, and procedures; and providing
budgetary guidance and support to City departments.

FINANCIAL OPERATIONS
The Financial Operations Division is responsible for the City’s financial reporting; accounts payable; payroll; grants monitoring; and management, maintenance, and development of the City’s Enterprise Resource Planning software and other financial systems. Division staff coordinates with the City’s independent auditors and other auditors to complete numerous financial and compliance audits and produce required financial reports to be submitted to numerous regulatory agencies, including the Annual Comprehensive Financial Report and the Single Audit Report.

PROCUREMENT
The Procurement Division is responsible for developing and implementing procurement policies and procedures and for providing procurement and contract administration guidance and support to City departments. The division coordinates the procurement of goods and services and assists all City departments with procurement efforts, securing goods and services which meet necessary standards and are in compliance with City policy and State law, assuring fair and equal opportunity to all qualified suppliers in support of the delivery of public services.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - FINANCE

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REVENUE
The Revenue Division is responsible for local tax administration, managing the City’s investment portfolio, revenue collection process, and banking relationships; administering debt issuance and compliance; collecting the business license tax and related City business permits/assessments; billing for and collecting utility payments from all City residents and businesses; ensuring that delinquent debts are collected; and counting and processing daily cash collections for City parking meter and transit fare-box revenue.

RISK MANAGEMENT ADMINISTRATION
The Risk Management Division is responsible for ensuring the City has sufficient insurance in place to cover all liability, workers’ compensation, and property losses; adjusting all liability and most of the workers’ compensation claims filed against the City; implementing policies and procedures across the organization to reduce the City’s exposure to unnecessary liability, workers’ compensation and property losses; and coordinating the City’s efforts to comply with local, state, and federal safety regulations.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - FINANCE

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - FIRE
FIRE
We believe in making a difference every
day. We help people by preserving and
improving the safety, health, and wellbeing
of our community. We provide collaborative
and innovative fire protection, emergency
medical care, and life safety services. We are
committed to service that honors our core
values of Integrity, Compassion, Teamwork,
Accountability, and Trust.

DEPARTMENT RESOURCES
FIRE

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 42,357,268 $ 44,540,477 $ 47,698,247 $ 48,839,290 $ 50,491,415 Supplies and Expenses 3,215,352 3,938,785 3,880,062 4,124,531 4,357,195 Subtotal 45,572,620 48,479,262 51,578,309 52,963,821 54,848,610 Miscellaneous Grants Fund
Supplies and Expenses 1,670,684 1,800,971 185,000 1,468,805 - Subtotal 1,670,684 1,800,971 185,000 1,468,805 -
Special Revenue Source Fund
Supplies and Expenses 7,380 11,752 15,000 15,300 15,606 Subtotal 7,380 11,752 15,000 15,300 15,606
Total All Funds
Salaries and Wages 42,357,268 44,540,477 47,698,247 48,839,290 50,491,415 Supplies and Expenses 4,893,416 5,751,508 4,080,062 5,608,636 4,372,801 Total Department $ 47,250,684 $ 50,291,985 $ 51,778,309 $ 54,447,926 $ 54,864,216 FIRE

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 134.0 137.0 138.0 137.0 137.0
Temporary Staffing 0.0 0.0 0.0 0.4 0.4
Total Personnel & Staffing 134.0 137.0 138.0 137.4 137.4

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SERVICE BY DIVISION

ADMINISTRATION DIVISION
The Fire Chief and administrative staff
are responsible for establishing and
implementing policy and procedures,
evaluating operational effectiveness and
implementing improvements, establishing
goals and objectives, analyzing outcomes,
and managing ongoing and one-time
capital improvement projects. Additionally,
the administrative staff is responsible
for oversight of continuing education for
Emergency Medical Services (EMS) personnel,
communications, and computers and
software programs utilized for emergency
response. Staff also provides City employees
with training in the use of Automatic External Defibrillators (AED), including the installation and maintenance of each unit, as well as the recertification of each employee. Administration works with the Department of Transportation under a maintenance agreement to ensure that Fire apparatus and heavy duty vehicles are kept in excellent working condition through scheduled preventative maintenance and timely repairs and service.

PREVENTION DIVISION
The Fire Prevention Division is responsible for
developing and implementing programs that prevent
or reduce the magnitude of emergencies, such as loss
of life and property, personal injury, or environmental damage. The division recommends and implements
ordinances, reviews plans, processes complaints,
and enforces codes, ordinances and laws through
inspection of new construction and existing buildings.

The division works with other City agencies, such as
the Police Department and the Building and Safety
Division of the Community Development Department,
to advocate for new or revised laws where appropriate. The division evaluates provisions for emergency access, building evacuation, confinement of fires, and potential for hazardous materials releases. Fire Prevention also enforces State laws regarding health care, penal, public assembly, high-rise facilities, and environmental regulations relating to hazardous materials. Additionally, the Prevention Division provides public safety education to the schools, community members, and City employees in fire safety and disaster assistance response training.

The division is also responsible for the SMFD’s social media.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - FIRE

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - FIRE

SUPPRESSION AND RESCUE DIVISION
The Fire Suppression and Rescue Division is responsible for responding to and effectively mitigating fire, medical, urban search and rescue, aircraft rescue firefighting, accident, and hazardous materials-related emergencies. This division also conducts extensive evaluation of its preparedness status, provides training and recertification of its personnel in the specialty fields of hazardous materials and urban search and rescue, evaluates potential building hazards, and plans mitigation tactics. The division also conducts residential inspections, provides public education, and maintains facilities, apparatus and equipment.

TRAINING DIVISION
The Training Division is responsible for providing and managing training for each Fire Department division, including recruitment programs and a recruit training academy for newly hired firefighters. The division coordinates and controls the training calendar for all divisions. Training activities cover career development; evaluation for retention of job skills, knowledge, abilities and team effectiveness; specialized and new information or procedures; monitoring of cyclic training recertification programs; post stress incident debriefing; classroom and field training; physical fitness programs; and training outside the City or Department.

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - HOUSING AND HUMAN SERVICES

HOUSING AND HUMAN

SERVICES
The Housing and Human Services
Department aligns Santa Monica’s social
services safety net with the City’s affordable
housing programs within one consolidated
team, administering a comprehensive
array of housing, educational, and social
services, programs, and investments to
support vulnerable populations. This, in
turn, supports an inclusive and diverse
Santa Monica, a place that dedicates local
investments in the community’s basic needs
for education, housing, and stability.

DEPARTMENT RESOURCES
HHS

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - HOUSING AND HUMAN SERVICES

SERVICE BY DIVISION

ADMINISTRATION
The Administration Division guides the department’s activities to ensure access to housing and human services that meet the needs and priorities of the community. Additionally, the division leads development of the department’s budget and financial reporting, coordinates its communication and marketing outreach, and provides administrative support to the department’s boards, commissions, and advisory bodies.

HOUSING
The Housing Division manages a diverse portfolio of
housing programs that address the needs of households
struggling with housing stability and affordability.

The division administers project and tenant-based
rental assistance programs, manages production and
preservation of affordable housing, and performs
compliance monitoring of existing affordable housing.

Collaborating with community stakeholders and partners, as well as with public and private lenders, developers
and service providers, the division works to ensure lowincome and vulnerable community members have access to income and rental support through the City’s Housing Authority to prevent homelessness and help individuals
and families thrive.

HHS

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ - $ - $ - $ 9,255,291 $ 9,732,617
Supplies and Expenses - - - 13,659,627 13,365,721
Subtotal - - - 22,914,918 23,098,338
Community Development Block Grant (CDBG) Fund
Supplies and Expenses - - - 205,293 209,399
Subtotal - - - 205,293 209,399
Housing Authority Fund
Salaries and Wages - - - 2,204,237 2,328,336
Supplies and Expenses - - - 27,382,710 27,745,991
Subtotal - - - 29,586,947 30,074,327
Miscellaneous Grants Fund
Supplies and Expenses - - - 512,231 512,231
Subtotal - - - 512,231 512,231
Special Revenue Source Fund
Supplies and Expenses - - - 2,000,000 2,000,000
Subtotal - - - 2,000,000 2,000,000
TORCA Fund
Supplies and Expenses - - - 6,120 6,242
Subtotal - - - 6,120 6,242
Total All Funds
Salaries and Wages - - - 11,459,528 12,060,953
Supplies and Expenses - - - 43,765,981 43,839,584
Total Department $ - $ - $ - $ 55,225,509 $ 55,900,537
Housing Authority Fund
Salaries and Wages - - - 2,204,237 2,328,336
Supplies and Expenses - - - 27,382,710 27,745,991
Subtotal - - - 29,586,947 30,074,327
Miscellaneous Grants Fund
Supplies and Expenses - - - 512,231 512,231
Subtotal - - - 512,231 512,231
Special Revenue Source Fund
Supplies and Expenses - - - 2,000,000 2,000,000
Subtotal - - - 2,000,000 2,000,000
TORCA Fund
Supplies and Expenses - - - 6,120 6,242
Subtotal - - - 6,120 6,242
Total All Funds
Salaries and Wages - - - 11,459,528 12,060,953
Supplies and Expenses - - - 43,765,981 43,839,584
Total Department $ - $ - $ - $ 55,225,509 $ 55,900,537
HHS

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 0.0 0.0 0.0 73.3 73.3
Temporary Staffing 0.0 0.0 0.0 8.2 8.2
Total Personnel & Staffing 0.0 0.0 0.0 81.4 81.4

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - HOUSING AND HUMAN SERVICES

HUMAN SERVICES
The Human Services Division manages an extensive portfolio of essential community resources and services that address the economic, equity and basic needs of low-income and vulnerable youth and families, people with disabilities, seniors, and people experiencing homelessness. Additionally, this dynamic division provides direct services through school and community-based educational and cultural programs and events at Virginia Avenue Park, the Police Activities League, and through the CREST Program. The division collaborates with community stakeholders and service providers to ensure low-income and vulnerable community members have access to an array of coordinated, high-quality safety net services funded through the City’s Human Services Grants Program.

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - HUMAN RESOURCES

DEPARTMENT RESOURCES

HUMAN RESOURCES
The mission of the Human Resources
Department is to attract and retain the
next generation of leaders, cultivate a
culture of accountability, empowerment
and leadership, and reinforce a civil and
equitable workplace.

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 4,224,808 $ 4,082,553 $ 5,126,538 $ 5,069,215 $ 5,314,408 Supplies and Expenses 745,552 868,115 817,835 1,239,126 1,260,697 Subtotal 4,970,360 4,950,668 5,944,373 6,308,341 6,575,105 Total All Funds
Salaries and Wages 4,224,808 4,082,553 5,126,538 5,069,215 5,314,408 Supplies and Expenses 745,552 868,115 817,835 1,239,126 1,260,697 Total Department $ 4,970,360 $ 4,950,668 $ 5,944,373 $ 6,308,341 $ 6,575,105 HR

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 22.0 27.0 27.0 26.0 26.0
Temporary Staffing 0.0 0.0 0.0 0.0 0.0
Total Personnel & Staffing 22.0 27.0 27.0 26.0 26.0

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - HUMAN RESOURCES

SERVICE BY DIVISION

ADMINISTRATIVE SERVICES
The Chief People Officer oversees the Administrative
Services Division which provides administrative
oversight and leadership to all the divisions of
the Human Resources Department. Functions of
the Administrative Services Division include but
are not limited to: establishing organizational
human resource policy and departmental budget
preparation and fiscal tracking; maintaining the
HR/Payroll and compensation systems; staff report
preparation; management of the department’s
records retention and the facilitation of the Santa
Monica Personnel Board. Through a team of HR
professionals the division promotes a culture that
reflects the City’s progressive values and ensures the
highest levels of service to the City’s departments
and workforce.

EMPLOYMENT AND CLASSIFICATION
The Employment and Classification Division engages in efforts to establish the City of Santa Monica as an employer of choice by attracting and retaining the next generation of leaders. The division handles all recruitment, selection and certification of qualified candidates supporting all City Departments. The division also manages all job classifications within the City and conducts studies to ensure classifications are relevant and meet the operational needs of City Departments. The HR staff serves as business partners using a consultative approach with City Departments when delivering business services to assist them in meeting their staffing needs as well as serving the public in their search for career opportunities with the City of Santa Monica.

LABOR AND EMPLOYEE RELATIONS
The Labor and Employee Relations Division is responsible for reinforcing a civil and equitable workplace. The division negotiates and administers labor agreements with the City’s various employee associations; provides assistance to departments regarding employee performance issues and disciplinary matters; ensures City compliance with all Federal and State employment laws; and investigates employee complaints. Additionally, the division administers the interactive/reasonable accommodation process and monitors compliance of various leave programs such as the Family and Medical Leave Act and California Family Rights Acts. The division's Human Resources Manager is responsible for labor negotiations for the City.

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ORGANIZATIONAL DEVELOPMENT AND EMPLOYEE BENEFITS
The Organizational Development and Employee Benefits Division is responsible for cultivating a culture of accountability, empowerment and leadership. The division provides services that focus on the development and retention of our workforce. The division facilitates training, organizational development and employee engagement opportunities within the City of Santa Monica to provide professional development for employees and enhance the organizational culture. The division also administers, coordinates, and provides information related to employee health benefits, employee wellness, deferred compensation, retirement, new employee orientation, and employee recognition programs.

PERFORMANCE MEASURES BY FRAMEWORK OUTCOME
FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - HUMAN RESOURCES

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - INFORMATION SERVICES

INFORMATION SERVICES
The mission of the Information Services
Department is to leverage technology in
support of responsive City services and
an exceptional digital experience for the
people of Santa Monica. Our vision: through
technology we empower people, connect
community, and craft solutions to support
a digitally literate City that works for
everyone.

DEPARTMENT RESOURCES
ISD

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 7,276,117 $ 7,553,551 $ 8,623,593 $ 9,952,888 $ 10,437,461 Supplies and Expenses 1,782,558 1,381,787 1,883,555 3,021,969 3,153,568 Subtotal 9,058,675 8,935,338 10,507,148 12,974,857 13,591,029 Community Broadband Fund
Salaries and Wages 827,429 831,221 1,134,621 - -
Supplies and Expenses 940,922 1,543,705 1,029,278 - -
Subtotal 1,768,351 2,374,926 2,163,899 - -
Miscellaneous Grants Fund
Supplies and Expenses 42,000 181,575 - - -
Subtotal 42,000 181,575 - - -
Total All Funds
Salaries and Wages 8,103,546 8,384,772 9,758,214 9,952,888 10,437,461 Supplies and Expenses 2,765,480 3,107,067 2,912,833 3,021,969 3,153,568 Total Department $ 10,869,026 $ 11,491,839 $ 12,671,047 $ 12,974,857 $ 13,591,029 ISD

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 46.0 49.0 52.0 52.0 52.0
Temporary Staffing 0.0 0.0 0.5 0.5 0.5
Total Personnel & Staffing 46.0 49.0 52.5 52.5 52.5

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SERVICE BY DIVISION

STRATEGY AND OPERATIONS
The Strategy and Operations Division manages business operations and administrative functions, provides project management oversight, delivers technology training, and oversees the City’s cyber security program. Major activities include: strategic planning and organizational development; budget development and oversight; contract management; project portfolio management, and development and implementation of technology policies and procedures.

COMMUNITY BROADBAND
The Community Broadband Division is responsible for
overall strategy, program development, operations,
and management of Santa Monica CityNet- the City’s
100 Gigabit advanced broadband initiative. CityNet
provides business broadband services to the City’s
businesses and several affordable housing units.

CUSTOMER EXPERIENCE AND SUPPORT
The Customer Experience and Support Division provides comprehensive support services to enable quality technology experiences for City staff and patrons. The division delivers a proactive customer support program that includes a call-center, department based business application services, and end-user device support.

DIGITAL TRANSFORMATION AND DEVELOPMENT
The Digital Transformation and Development Division leads the City’s efforts in software engineering, information architecture, data analysis and integration, and geospatial analysis. The division contributes to the City of Santa Monica’s mission of government transparency and resident empowerment by developing and supporting applications such as the Santamonica.gov, the Santa Monica Mobile App, and the City’s open data program.

INFRASTRUCTURE AND CLOUD SERVICES
The Infrastructure and Cloud Services Division manages the planning, implementation, and operation of the City’s Information Technology infrastructure, including the City’s on premise and cloud-hosted datacenters, telecommunications services, and the City’s network that connects 44 City facilities, 13 School District facilities, 6 College facilities, 156 traffic signals, and 14 parking facilities.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - INFORMATION SERVICES

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - LIBRARY

LIBRARY
The mission of the Library is to provide
resources, services, and a physical and
virtual space to encourage the community
to read, connect, relax, and learn. The
Library supports literacy, lifelong learning,
civic engagement, and cultural awareness
through the Strategic Plan’s four main
focus areas: 1) Vibrant Learning Center,
2) Wellbeing Cultivator, 3) Dynamic Third
Place, and 4) Community and Cultural
Connector. The Library is committed
to diversity, equity and inclusion and
welcomes all.

DEPARTMENT RESOURCES
LIB

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 6,915,021 $ 6,913,212 $ 8,392,544 $ 8,893,310 $ 9,296,256 Supplies and Expenses 1,797,964 1,760,338 1,967,186 2,093,377 2,215,043 Subtotal 8,712,985 8,673,550 10,359,730 10,986,687 11,511,299 Miscellaneous Grants Fund
Supplies and Expenses 41,271 41,365 56,006 60,465 66,118 Subtotal 41,271 41,365 56,006 60,465 66,118
Total All Funds
Salaries and Wages 6,915,021 6,913,212 8,392,544 8,893,310 9,296,256 Supplies and Expenses 1,839,235 1,801,703 2,023,192 2,153,842 2,281,161 Total Department $ 8,754,256 $ 8,714,915 $ 10,415,736 $ 11,047,152 $ 11,577,417 LIB

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 47.0 51.0 53.5 56.5 56.5
Temporary Staffing 0.8 7.3 14.5 16.4 16.4
Total Personnel & Staffing 47.8 58.3 68.0 72.9 72.9

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SERVICE BY DIVISION

ADMINISTRATION AND BUSINESS

SERVICES
The Administration and Business Services Division
plans and oversees the operation of the department;
coordinates system-wide business services, including
HR processes, staff development, and facilities
management; develops and disperses the budget;
oversees branch facilities and daily operations;
handles special projects; directs internal staff
communications and engagement; and aligns staff
work with the City’s and Library’s priorities, mission
and vision. The division manages system-wide
publicity and community relations, staffs the Library
Board, assists the Friends of the Santa Monica Public
Library, and maintains the safety and security of all
Library facilities.

COLLECTIONS, TECHNOLOGY AND PATRON SERVICES
The Collections, Technology and Patron Services
Division supports the Library’s strategic goal as
a Vibrant Learning Center by coordinating and
maintaining collections to help community members
learn, improve, and grow. The division includes
the following functions: materials selection and
acquisitions, cataloging and processing, and Patron
Services desk and cardholder account management.

The division is also responsible for implementation
of the Library’s technology initiatives, virtual
infrastructure and digital environment, and supports
the Library as a virtual Dynamic Third Place.

COMMUNITY ENGAGEMENT AND PROGRAMMING
The Community Engagement and Programming Division addresses the programming needs of youth, families, and adults through innovative programs, activities, and learning experiences. In alignment with the Library’s goal as a Vibrant Learning Center, this division produces a variety of literary programs and literacy services for adults and FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - LIBRARY

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families, coordinates volunteers, and hosts technology and educational classes. The division supports the Library as a Wellbeing Cultivator and Community and Cultural Connector by collaborating with community groups and organizations, working with diverse populations, enhancing relationships with the schools and other youth service providers, and actively engaging with new partners and external resources to support services for all ages.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - LIBRARY

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - POLICE
POLICE
We are dedicated to safeguarding our
community by improving quality of life
and upholding public trust. We endeavor
to be law enforcement’s benchmark for
excellence as we seek to eliminate crime
and social disorder in collaboration with our
community partners.

DEPARTMENT RESOURCES
PD

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 89,706,673 $ 88,440,161 $ 101,448,895 $ 103,746,464 $ 107,624,055 Supplies and Expenses 6,688,980 7,656,645 7,279,039 9,444,635 10,036,497 Subtotal 96,395,653 96,096,806 108,727,934 113,191,099 117,660,552 Asset Seizure Fund
Supplies and Expenses 124,407 143,733 - - -
Subtotal 124,407 143,733 - - -
Citizen's Option for Public Safety (COPS) Fund
Supplies and Expenses 326,973 12,754 104,858 106,955 109,094 Subtotal 326,973 12,754 104,858 106,955 109,094
Miscellaneous Grants Fund
Salaries and Wages 241,182 183,640 258,444 - -
Supplies and Expenses 186,452 113,077 497,360 887,988 - Subtotal 427,634 296,717 755,804 887,988 -
Pier Fund
Salaries and Wages 1,622,964 1,630,855 1,604,144 1,652,431 1,742,890 Supplies and Expenses 162,787 187,358 186,562 200,682 207,829 Subtotal 1,785,751 1,818,213 1,790,706 1,853,113 1,950,719 Special Revenue Source Fund
Supplies and Expenses 32,025 96,955 4,390 4,478 4,568
Subtotal 32,025 96,955 4,390 4,478 4,568
Total All Funds
Salaries and Wages 91,570,819 90,254,656 103,311,483 105,398,895 109,366,945 Supplies and Expenses 7,521,624 8,210,522 8,072,209 10,644,738 10,357,988 Total Department $ 99,092,443 $ 98,465,178 $ 111,383,692 $ 116,043,633 $ 119,724,933

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SERVICE BY DIVISION

OFFICE OF THE CHIEF OF POLICE
The Office of the Chief of Police is the Chief Executive of the Police Department and provides direct oversight of the executive staff. The Chief’s Office has the responsibility to ensure the implementation of goals, objectives, policies, procedures, and standards for the department. It establishes the overall mission and sets direction for the Department as a whole. The Chief’s Office takes part in the design, management, and evaluation of all law enforcement activities. The Chief’s Office also partakes in the strategic planning covering the use of resources, coordinating activities, and ensuring high quality service. Additionally, the office contributes to the development and implementation of projects and programs to maximize police services in coordination with the City Manager, the City Council, other city departments, and public and private organizations. The Community Affairs Unit consists of the Crime Prevention Coordinators and Neighborhood Resource Officers, which works as a liaison between the public and the Police Department to resolve quality of life issues.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - POLICE
PD

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - POLICE

PATROL SERVICES
The Patrol Operations Division (POD) includes Patrol, Downtown Services Unit (DSU), Direct Action Response Team (DaRT), Community Service Officers, K9 Program, and Harbor Unit. Patrol is responsible for the preservation of peace and protection of life and property, maintains a 24-hours-a-day City patrol. It is tasked with enforcement of laws, conducting preliminary investigations of crimes, and the apprehension of criminal offenders. Patrol responds to 911 calls, the majority of homeless related calls, encampments, fights, assaults, disturbances, public death, and open-air drug use and dealing. Downtown Services utilizes bicycles, zero bikes, and provides a collaborative approach to community policing by partnering with the downtown community and business improvement districts (BIDs). DaRT is partnered with Code Enforcement, Fire and the City Attorney to provide effective solutions to impacting the criminal activity on and around the Santa Monica Beach and Pier.

CRIMINAL INVESTIGATIONS
The Criminal Investigations Division includes the Criminal Investigations Section, the Criminal Investigations Support Section, and the Custody Section. The Criminal Investigations Section is an impartial fact-finding entity responsible for the apprehension of criminals through investigation, recovery of stolen property, and the preparation and presentation of evidence to the judicial system. Detectives also identify, register, and track previously convicted sex offenders utilizing State mandated protocols. The Criminal Investigations Support Section is responsible for the management of public law enforcement records, Uniform Crime Reporting, Investigative analysis, and the retention and safeguarding of evidence and found property. The Custody Section’s primary mission is to take custody of people who have been arrested and ensure their safety and security until their arraignment or release.

SPECIAL OPERATIONS
The Special Operations Division is comprised of three sections: Special Enforcement Section, Strategic Planning Section, and Traffic Services Section. Within the Special Enforcement Section lies the Homeless Liaison Program (HLP), Public Services Officers (PSOs) Unit, and collateral units including SWAT, Crisis Negotiations Unit, and the Mounted Unit. HLP addresses quality of life issues associated with the homeless population while providing longterm solutions. This unit works hand in hand with other city departments, such as the Human Services Division and the City Attorney’s Office, to positively deal with the problems brought about by homelessness. The PSOs are non-sworn personnel deployed in the parks, airport, and downtown areas to address quality of life concerns.

Within the Strategic Planning Section lies the Traffic Enforcement Unit and Planning and Intelligence, along with collateral units including Mobile Field Force, Major Accident Response Team, and the Mobile Command Post. The Traffic Enforcement Unit, comprised of our motor officers and collision investigators, provide citywide enforcement, education, and investigation of vehicle code violations. Planning and Intelligence is responsible for facilitating First Amendment activities and intelligence coordination with local, state, and federal law enforcement partners.

Within the Traffic Services Section lies the Traffic Services Unit, Crossing Guard Unit, and Parking Citation Review.

The Traffic Services Unit and Crossing Guards provide intersection traffic control and parking enforcement services throughout the City and enhances pedestrian safety.

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PROFESSIONAL SERVICES
The Professional Services Division includes the Technical Services Section, Animal Control Section, and the Budget & Procurement Unit. The Technical Services Section encompasses several units: the Logistics Unit is responsible for implementing and recommending technology integration into the police department and maintaining the police safety facility; the Range Unit provides firearms training and operation of the shooting range and equipment inventory and tracking; the Drone as a First Responder (DFR) unit provides Remote Aerial Systems (RAS) to assist in the daily operations of patrol. The Animal Control Section operates a progressive animal care shelter, and is responsible for the enforcement of both local and State animal control laws and regulations. The Budget and Procurement Unit is responsible for the fiscal planning, analysis, and procuring of department equipment and supplies.

HARBOR UNIT
The Harbor Unit provides 24-hour security, rescue, and major first-aid service to persons using the Pier, ocean, and beach areas. The Unit provides a continuous source of phone and over-the-counter public information on weather, tides, boating, fishing, and other marine matters. The Harbor Unit works closely with other municipal, County, and State agencies, and keeps watch for crimes and potential crimes on the Pier and adjacent beach area, reporting suspicious activity to Police Officers. Harbor Unit personnel also support the operations of the Municipal Pier by maintaining and protecting pier pilings, moorings, and related structures and equipment. The Unit is under the supervision of the Patrol Operations Division.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - POLICE

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - PUBLIC WORKS

PUBLIC WORKS
The mission of the Public Works
Department is to protect and enrich the
quality of life in the City through the
sustainable maintenance, management,
and enhancement of resources and public
infrastructure.

DEPARTMENT RESOURCES
PW

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

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SERVICE BY DIVISION

ADMINISTRATIVE SERVICES
The Administrative Services Division directs the work of the department and provides administrative support to the Public Works Divisions. Support includes coordinating and preparing the department operating budget, coordinating and managing the City’s Capital Improvement Program and budget, coordinating City Council staff reports and information items, monitoring responses to constituent inquiries, and conducting research and analysis. The division is also responsible for inter-departmental and interagency coordination. Within the division, Woodlawn Cemetery, Mausoleum and Mortuary provides mortuary services, funeral service planning, and cemetery services including sale of traditional and green burial plots. In addition, the Fleet Management section procures and services the City’s fleet including over 800 pieces of equipment, vehicles and maintenance of various fueling stations.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - PUBLIC WORKS
PW

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 28,162,010 $ 28,225,449 $ 31,907,852 $ 32,708,348 $ 34,223,077 Supplies and Expenses 13,567,692 17,026,861 16,596,744 18,650,332 20,583,398 Subtotal 41,729,702 45,252,310 48,504,596 51,358,680 54,806,475 Airport Fund
Salaries and Wages 1,403,061 1,753,432 2,348,947 2,502,131 2,644,093 Supplies and Expenses 5,476,615 6,437,016 7,277,919 7,874,993 8,275,453 Subtotal 6,879,676 8,190,448 9,626,866 10,377,124 10,919,546 Beach Recreation Fund
Salaries and Wages 2,895,799 3,165,212 3,846,480 4,015,621 4,179,517 Supplies and Expenses 2,238,481 2,429,016 2,647,273 2,970,802 3,111,338 Subtotal 5,134,280 5,594,228 6,493,753 6,986,423 7,290,855 Cemetery Fund
Salaries and Wages 964,625 929,063 1,057,337 977,227 1,022,590 Supplies and Expenses 1,266,952 1,468,020 1,468,827 1,527,236 1,607,171 Subtotal 2,231,577 2,397,083 2,526,164 2,504,463 2,629,761 Clean Beaches & Ocean Parcel Tax Fund
Supplies and Expenses 533,931 527,130 781,378 799,020 816,097 Subtotal 533,931 527,130 781,378 799,020 816,097
Miscellaneous Grants Fund
Supplies and Expenses 38,428 55,741 303,429 - -
Subtotal 38,428 55,741 303,429 - -
Pier Fund
Salaries and Wages 427,689 522,113 542,774 549,386 571,323 Supplies and Expenses 1,698,307 1,927,626 2,419,879 2,388,217 2,473,447 Subtotal 2,125,996 2,449,739 2,962,653 2,937,603 3,044,770 Resource Recovery & Recycling Fund
Salaries and Wages 10,730,663 10,974,649 12,599,859 13,985,023 14,552,955 Supplies and Expenses 13,406,082 14,389,540 15,870,322 18,014,362 18,783,717 Subtotal 24,136,745 25,364,189 28,470,181 31,999,385 33,336,672 Vehicle Management Fund
Salaries and Wages 3,188,622 3,038,055 3,360,423 3,640,517 3,803,823 Supplies and Expenses 3,790,961 4,438,665 4,449,577 4,859,536 5,230,948 Subtotal 6,979,583 7,476,720 7,810,000 8,500,053 9,034,771 Wastewater Fund
Salaries and Wages 2,392,762 2,474,388 3,055,457 3,484,644 3,612,719 Supplies and Expenses 9,712,635 7,807,302 15,970,691 16,773,097 17,378,167 Subtotal 12,105,397 10,281,690 19,026,148 20,257,741 20,990,886 Water Fund
Salaries and Wages 6,504,343 7,293,283 8,751,915 9,042,926 9,457,601 Supplies and Expenses 17,435,066 19,647,026 20,511,564 19,714,314 20,573,137 Subtotal 23,939,409 26,940,309 29,263,479 28,757,240 30,030,738 Total All Funds
Salaries and Wages 56,669,574 58,375,644 67,471,044 70,905,823 74,067,698 Supplies and Expenses 69,165,150 76,153,943 88,297,603 93,571,909 98,832,873 Total Department $ 125,834,724 $ 134,529,587 $ 155,768,647 $ 164,477,732 $ 172,900,571 Supplies and Expenses 533,931 527,130 781,378 799,020 816,097 Subtotal 533,931 527,130 781,378 799,020 816,097
Miscellaneous Grants Fund
Supplies and Expenses 38,428 55,741 303,429 - -
Subtotal 38,428 55,741 303,429 - -
Pier Fund
Salaries and Wages 427,689 522,113 542,774 549,386 571,323 Supplies and Expenses 1,698,307 1,927,626 2,419,879 2,388,217 2,473,447 Subtotal 2,125,996 2,449,739 2,962,653 2,937,603 3,044,770 Resource Recovery & Recycling Fund
Salaries and Wages 10,730,663 10,974,649 12,599,859 13,985,023 14,552,955 Supplies and Expenses 13,406,082 14,389,540 15,870,322 18,014,362 18,783,717 Subtotal 24,136,745 25,364,189 28,470,181 31,999,385 33,336,672 Vehicle Management Fund
Salaries and Wages 3,188,622 3,038,055 3,360,423 3,640,517 3,803,823 Supplies and Expenses 3,790,961 4,438,665 4,449,577 4,859,536 5,230,948 Subtotal 6,979,583 7,476,720 7,810,000 8,500,053 9,034,771 Wastewater Fund
Salaries and Wages 2,392,762 2,474,388 3,055,457 3,484,644 3,612,719 Supplies and Expenses 9,712,635 7,807,302 15,970,691 16,773,097 17,378,167 Subtotal 12,105,397 10,281,690 19,026,148 20,257,741 20,990,886 Water Fund
Salaries and Wages 6,504,343 7,293,283 8,751,915 9,042,926 9,457,601 Supplies and Expenses 17,435,066 19,647,026 20,511,564 19,714,314 20,573,137 Subtotal 23,939,409 26,940,309 29,263,479 28,757,240 30,030,738 Total All Funds
Salaries and Wages 56,669,574 58,375,644 67,471,044 70,905,823 74,067,698 Supplies and Expenses 69,165,150 76,153,943 88,297,603 93,571,909 98,832,873 Total Department $ 125,834,724 $ 134,529,587 $ 155,768,647 $ 164,477,732 $ 172,900,571 PW

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 438.0 445.0 459.5 480.5 480.5
Temporary Staffing 0.0 2.9 2.9 0.4 0.4
Total Personnel & Staffing 438.0 447.9 462.4 480.9 480.9

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AIRPORT
The Airport Division manages the operation of the Santa Monica Municipal Airport, a general aviation airport.

Airport Administration provides enforcement of noise regulations and applicable fees and user rates, and acts as a liaison with the neighboring community, aviation groups, and the Airport Commission. The Airport Division provides property management services to the numerous tenants of the Airport campus, and provides for the general maintenance and Capital Improvements of City-owned Airport property and buildings.

ARCHITECTURE SERVICES
The Architecture Services Division is responsible for the planning, design, construction and management of capital improvement projects related to City-owned and leased
facilities, including public buildings, community and
recreation centers, parks, parking structures, transportation facilities, libraries and fire stations. The division incorporates the City’s sustainable design directives, while maintaining a high standard of economy, utility, and aesthetics. The division strives to provide innovative design solutions in the development and construction of efficient, sustainable, safe, and inspiring public facilities and open spaces.

ENGINEERING AND STREET SERVICES
The Engineering and Street Services Division provides sustainable design, construction, and construction management services for City public infrastructure improvements including annual street resurfacing, water/ waste water main replacement, pier upgrades, airport improvements, urban runoff mitigation and watershed management. Additionally, the division provides various services related to land development including permit review, right-of-way inspection, and utility coordination. Within the division, the Street Services section repairs and maintains city streets, alleys, and sidewalks as well as the vast network of streetlights, park and parking lot lighting, and electric vehicle charging stations.

FACILITIES MAINTENANCE
The Facilities Maintenance Division is divided into four distinct sections. The Custodial Services section manages cleaning services for all public parks, public restrooms, and City facilities by both in-house and contractual custodial staff. The Promenade Maintenance section is responsible for ensuring the over 4 million square-feet of downtown area are maintained, allowing residents and visitors a safe and beautiful city center to explore.

The Facilities Services section is responsible for the upkeep, repairs and maintenance of all City buildings and properties by skilled City staff and outside contractors. The division also oversees the Airport Maintenance section, which is responsible for the day to day maintenance of runway, taxiways, aircraft parking areas, buildings and infrastructure.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - PUBLIC WORKS

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OFFICE OF SUSTAINABILITY AND THE ENVIRONMENT
The Office of Sustainability and the Environment is responsible for strategic initiatives that promote environmental, economic, and social sustainability. The office oversees programs and policies related to climate change, resource management, energy, watershed management, water conservation and efficiency, sustainable procurement, and toxic use reduction. It also provides education, outreach, and training to residents, students, and businesses regarding sustainable practices. The Office leads the citywide efforts to enhance and expand electric vehicle infrastructure, and achieve water self-sufficiency, zero waste, and carbon neutrality.

PUBLIC LANDSCAPE
The Public Landscape Division maintains and enhances the City’s parks, landscapes, urban forest, Santa Monica State Beach, Santa Monica Pier, Santa Monica Swim Center, and Annenberg Community Beach House. These assets require constant upkeep and repairs as they are heavily used for recreation, leisure, commerce, and events, and impact health, wellness, and quality of life. Some responsibilities include tennis and basketball courts, athletic fields, park amenities, Muscle Beach, managing over 35,000 public trees; and keeping the waterfront clean. The division leads or collaborates with other departments on a variety of capital improvement projects and implements the vision of the City’s Urban Forest Master Plan.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - PUBLIC WORKS

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RESOURCE RECOVERY & RECYCLING
The Resource Recovery & Recycling Division collects all residential and commercial municipal landfill trash, organics, and recyclable material in the City, services litter and recycling cans located on sidewalks, provides bulky item pick-up and illegal dumping clean-ups, sweeps all streets to prevent debris from entering the storm drains and polluting the Santa Monica Bay, performs fee-based services, such as pressure-washing and trash enclosure plan checks, manages the household and small business hazardous waste program, and oversees the City's zero waste programs including construction and demolition material recycling, zero waste event management, public outreach, and community engagement. In response to California Senate Bill 1383, which mandates Statewide organics recycling and edible food recovery, in 2022 the division continued the rollout of green organics containers to locations throughout the City that did not already have one, with an anticipated completion by the end of December 2023.

WATER RESOURCES
The Water Resources Division provides a safe, reliable and sustainable water supply for residents and businesses, operates the City’s potable and recycled water production and treatment facilities and distribution systems, manages water pollution prevention programs, oversees groundwater basin clean-up operations, and maintains the wastewater collection and conveyance system. The division is working towards reducing the City’s reliance on imported water supplies by diversifying the City's water supply portfolio to enhance sustainability and drought resiliency through projects like the recently completed Sustainable Water Infrastructure Project (SWIP) and enhance production efficiency of the City's Arcadia Water Treatment Plant by the end of 2023. The SWIP would recover 1,680 acre-feet of water annually (approximately 11% of the City’s supply) from stormwater, dry weather urban runoff and municipal wastewater through a new stormwater harvesting tank, a new advanced water treatment facility, and upgrades to the Santa Monica Urban Runoff Recycling Facility (SMURRF). Production efficiency enhancement of the City's Arcadia Water Treatment Plant will increase overall recovery to 90%, adding an additional 1,200 acre-feet of water annually (approximately 8% of the City's water supply).

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - PUBLIC WORKS

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - RECREATION AND ARTS

RECREATION AND ARTS
The Recreation and Arts Department
focuses on efforts and initiatives that serve
communities through its social, cultural and
recreational programming. Initiatives of
the new department will include the future
management and programming at the Miles
Memorial Playhouse and Camera Obscura
cultural facilities, reframing City Hall murals,
promoting economic recovery through
art activations and events, leveraging the
Beach House as a tourist destination and a
key element of Santa Monica’s beachfront
brand, addressing the conflicts between
demand for recreational amenities and
capacity, managing recreational spaces
and programs, and permitting community
events and art installations.

DEPARTMENT RESOURCES
RAD

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ - $ - $ - $ 7,001,488 $ 7,301,903
Supplies and Expenses - - - 3,041,165 3,118,474
Subtotal - - - 10,042,653 10,420,377
Beach Recreation Fund
Salaries and Wages - - - 1,504,439 1,569,300
Supplies and Expenses - - - 1,332,525 1,409,858
Subtotal - - - 2,836,964 2,979,158
Special Revenue Source Fund
Supplies and Expenses - - - 345,995 300,915
Subtotal - - - 345,995 300,915
Total All Funds
Salaries and Wages - - - 8,505,927 8,871,203
Supplies and Expenses - - - 4,719,685 4,829,247
Total Department $ - $ - $ - $ 13,225,612 $ 13,700,450

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SERVICE BY DIVISION

ADMINISTRATION
The Administration Division guides the Department’s activities to ensure access to the social, cultural, recreational, and educational programs and services that meet the needs and interests of the community. Additionally, the division leads development of the department’s budget and financial reporting and coordinates its communication and marketing outreach.

COMMUNITY RECREATION
The Community Recreation Division manages recreation and active-living programs at the City’s parks, beach, and recreation facilities. In addition, the division offers aquatics programming at the City’s award-winning Swim Center, Santa Monica High School Aquatics Center and the Annenberg Community Beach House, including recreational and lap swimming, swim instruction, specialty classes, and competitive swimming opportunities. The division oversees adult sports leagues, the Memorial Park Gym, The Cove Skatepark, and community classes and camps.

Additionally, the division develops policies and issues permits for use of facilities, BBQ picnic areas, sports fields, tennis courts, commercial fitness and athletic instruction, and community events.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - RECREATION AND ARTS
RAD

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 0.0 0.0 0.0 42.8 42.8
Temporary Staffing 0.0 0.0 0.0 43.3 43.3
Total Personnel & Staffing 0.0 0.0 0.0 86.1 86.1
RAD

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

EXPENDITURES
00 ACTUAL
0 ACTUAL
S
BUDGET
OOS
BUDGET
UG
PLAN
General Fund
Salaries and Wages $ - $ - $ - $ 7,001,488 $ 7,301,903
Supplies and Expenses - - - 3,041,165 3,118,474
Subtotal - - - 10,042,653 10,420,377
Beach Recreation Fund
Salaries and Wages - - - 1,504,439 1,569,300
Supplies and Expenses - - - 1,332,525 1,409,858
Subtotal - - - 2,836,964 2,979,158
Special Revenue Source Fund
Supplies and Expenses - - - 345,995 300,915
Subtotal - - - 345,995 300,915
Total All Funds
Salaries and Wages - - - 8,505,927 8,871,203
Supplies and Expenses - - - 4,719,685 4,829,247
Total Department $ - $ - $ - $ 13,225,612 $ 13,700,450

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CULTURAL AFFAIRS
The Cultural Affairs Division manages the development and implementation of a broad range of community-focused cultural programs and investments. This includes supporting local artists and arts organizations through direct grants, residency programs, visibility, and convenings; commissioning public art; implementing creative partnerships to reopen cultural facilities such as the Miles Playhouse and Camera Obscura; and overseeing the Annenberg Community Beach House. Alongside the Arts Commission, the division serves as an advocate for arts and culture. Cultural Affairs also runs Art of Recovery, a pioneering program that uses dynamic partnerships between creatives and other sectors to achieve the City’s recovery goals. The division’s newest initiative, Acknowledge and Reframe Together (Reframe), produces public art and civic memory projects that center community voices with the aim of creating a more just and equitable Santa Monica.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - RECREATION AND ARTS

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - DEPARTMENT OF TRANSPORTATION

DEPARTMENT OF

TRANSPORTATION
The Santa Monica Department of
Transportation (SaMoDoT) provides
accessible connections to economic
opportunity and leads the City’s vision for a
non-auto-centric future, while also ensuring
safe and reliable streets. The department is
a resource for innovative, accessible, and
sustainable mobility options. DoT combines
Big Blue Bus (BBB) planning, operations
and maintenance, traffic engineering,
operations and maintenance, multi-modal
transportation planning, programming and
design, shared mobility and micromobility
regulation, transportation permitting and
parking operations/management under one
administration. DoT advances BBB’s regional
transit service, the Mobility On-Demand
Every Day (MODE) paratransit program,
and the planning and implementation of
Complete, Green Streets to include bus,
bike, pedestrian, micromobility, and first-last
mile options. DoT provides opportunities for
community mobility and wellbeing as part
of an active, accessible, congestion-relieving,
multimodal transportation network.

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - DEPARTMENT OF TRANSPORTATION

DEPARTMENT RESOURCES
DOT

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ 5,147,444 $ 4,910,421 $ 6,021,687 $ 5,946,452 $ 6,308,613 Supplies and Expenses 15,076,234 17,855,805 18,787,844 18,672,141 19,445,480 Subtotal 20,223,678 22,766,226 24,809,531 24,618,593 25,754,093 Big Blue Bus Fund
Salaries and Wages 51,681,247 52,363,880 62,090,857 60,827,885 63,677,273 Supplies and Expenses 18,346,889 19,069,003 21,322,557 24,358,871 24,951,776 Subtotal 70,028,136 71,432,883 83,413,414 85,186,756 88,629,049 Local Return Fund
Supplies and Expenses 272,238 326,327 494,538 600,429 610,518 Subtotal 272,238 326,327 494,538 600,429 610,518
Parking Authority Fund
Salaries and Wages 1,050 1,000 900 900 900
Subtotal 1,050 1,000 900 900 900
Special Revenue Source Fund
Supplies and Expenses 255,838 203,793 324,533 331,024 337,644 Subtotal 255,838 203,793 324,533 331,024 337,644
Total All Funds
Salaries and Wages 56,829,741 57,275,301 68,113,444 66,775,237 69,986,786 Supplies and Expenses 33,951,199 37,454,928 40,929,472 43,962,465 45,345,418 Total Department $ 90,780,940 $ 94,730,229 $ 109,042,916 $ 110,737,702 $ 115,332,204 DOT

PERSONNEL
2020-21

REVISED
BUDGET
2021-22

REVISED
BUDGET
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Permanent Employees 441.8 448.8 469.3 472.3 472.3
Temporary Staffing 0.5 0.5 0.5 0.5 0.5
Total Personnel & Staffing 442.3 449.3 469.7 472.7 472.7

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SERVICE BY DIVISION

FINANCE AND ADMINISTRATIVE SERVICES
The Finance and Administrative Services Division is responsible for providing leadership and direction to the SaMoDoT through ensuring stable regional, federal, and state funding sources, developing new services, resources for staff and BBB capital project oversight. The division manages a portfolio of projects including the longrange transition of the Big Blue Bus fleet to zero-emission vehicles and the procurement and implementation of transit system technology solutions. The division provides oversight in the hiring and recruitment of staff, equal employment opportunity, financial performance, evaluation compliance, as well as employee relations.

Additionally, the division is responsible for the development and oversight of the biennial operating budget, multiyear financial and capital plan, funding strategies, and BBB grants administration. It also provides all operational accounting support to the department such as payroll-timekeeping, BBB accounts payables and receivables, vault and fare inventory control, and warranty recovery. The division coordinates the completion of financial, compliance, operational and performance audits, and manages the development and submittal of all required local, state, and federal compliance documentation and reporting. The division is also responsible for bus advertising sales.

COMMUNITY ENGAGEMENT AND CUSTOMER EXPERIENCE
The Community Engagement and Customer
Experience Division is responsible for marketing
and communications for Big Blue Bus (BBB), the
Mobility On-Demand Every Day (MODE) program;
community outreach and customer information.

The division develops and administers annual
customer surveys, manages media and public
relations activities, works with local and regional
transportation partners on communications,
captures and responds to customer inquiries
related to BBB and MODE service, facilitates transit
fare product purchases and in-person assistance at
Blue: The Transit Store, and maintains and operates
both the BBB and MODE Call Centers.

The division manages the conceptualization, graphic design, copywriting, and production of all digital and printed public information for BBB and MODE, including the Little Blue Book transit guide, system maps, route maps, interior and exterior bus advertising, audio announcements, website, social media, email marketing, video production, internal and external publications, and all customer-facing aspects of BBB’s bus stops and transit hubs, and other activities in support of BBB’s goals and objectives.

FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - DEPARTMENT OF TRANSPORTATION

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - DEPARTMENT OF TRANSPORTATION

MAINTENANCE
The Maintenance Division is responsible for the
procurement, maintenance, technology, and servicing
of the Big Blue Bus (BBB) fleet of more than 195 clean
fuel and zero-emission buses and service vehicles as
well as providing maintenance services to both the Fire and Police Department heavy vehicles and apparatus.

In addition, the division is responsible for cleaning and fueling buses used in revenue service, procurement
of goods and services, parts and equipment inventory
management/control, and the overall maintenance
of all BBB infrastructure supporting these functions.

The division is also responsible for BBB all facilities infrastructure and the BBB bus stop maintenance and
cleaning program, bus stop amenities, facility and
heavy shop equipment preventative maintenance
programs, and BBB capital improvement projects
related to facility and bus stop enhancements.

MOBILITY
The Mobility Division provides accessible connections to economic activity and strives to manage congestion, reduce green house gas emissions, and eliminate fatal and severe injury crashes from our streets. The team oversees citywide transportation to increase the safety, efficiency, quality, convenience, and variety of Santa Monica’s transportation options and ensures the safe movement of people and
goods throughout the City. The division is responsible for a Capital Improvement Project (CIP) program to implement the protected bike lane network envisioned in the Bike Action Plan Amendment, the goals of the Pedestrian Action Plan, and safety enhancements to realize our goal of eliminating all traffic fatalities by 2026 as part of the City’s Vision Zero Program.

The Mobility Division coordinates city-wide efforts that affect how our streets are designed, operated, and maintained. The division oversees the City’s traffic management system, traffic signals, traffic signs and markings, as well as programs including Shared Use Mobility, Personal Delivery Devices, Take the Friendly Road Safety Campaign, and Taxicab and Pedicab permitting and policy.

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - DEPARTMENT OF TRANSPORTATION
The division reviews private property development for compliance with the City’s transportation design and transportation demand management requirements, and seeks to reduce construction disruption through mitigation plans and permitting for temporary traffic controls, oversize loads and roadway closures. The division is responsible for the day-to-day operations of the Preferential Parking Program and Employer Trip Reduction Ordinance. Special projects of the division include economic recovery through parklets and directing the GoSaMo Transportation Management Organization.

OPERATIONS
The Operations Division is responsible for the delivery of safe, reliable, and efficient daily service to our customers on all of Big Blue Bus’s (BBB’s) routes across its 58 square mile service area. Operations is responsible for all BBB operations personnel including 335 Motor Coach Operators and Motor Coach Operator Supervisors who provide support to street operations, fleet communications, and daily staff scheduling. The division also manages the Motor Coach Operator General Work Bid three times per year, facilitates service delivery for special events and related detours in the City and the Los Angeles service area, and oversees service disruptions in real-time due to unforeseen road events.

PARKING OPERATIONS
The Parking Operations Division is responsible for the revenues, management, and operations of the City’s 5,600 on-street parking meters and 41 off-street public parking facilities in Downtown, the beach lots and other locations citywide. Through innovative staffing and technology solutions, the division ensures efficient access to each facility, protects parking assets and revenues, maximizes the customer experience, provides safe and well-maintained parking facilities, and supports the City’s broader transportation and mobility goals through data analytics and regulatory compliance.

Division staff oversees the collection and adjudication of parking citations, administers the City’s residential, recreational, and other parking permit programs, as well as manages the coordination of special event parking activations in the City’s off-street public parking facilities. The division also maintains a working collaboration with regulatory bodies such as the California Coastal Commission to ensure timely compliance for beach zone access and parking issues.

PLANNING AND PERFORMANCE
The Transit Planning and Performance Division is responsible for service planning for Big Blue Bus (fixed route) and MODE (demand response). Service planning includes route and schedule changes, creation of vehicle and motor coach operator (MCO) schedules, advancing projects and programs that improve fixed route travel times (e.g., bus

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - DEPARTMENT OF TRANSPORTATION
only lanes), setting fare policy, conducting planning studies and analyses, and researching and implementing best practices to improve the customer experience (e.g., real-time signs at bus stops). The division is also responsible for the collection and reporting of all fixed route and demand response performance metrics such as ridership, system size (i.e., miles and hours), route performance, cost effectiveness, safety, maintenance, and fares, and supports the department’s federally required reporting to the National Transit Database (NTD). Finally, the division serves as a liaison to other transit agencies in LA County to coordinate and implement projects that improve transit services in the region.

SAFETY AND TRAINING
The Safety and Training Division is responsible
for the development, management, and
implementation of all DOT safety, security, and
training programs. The division develops and
maintains Big Blue Bus (BBB) Public Transportation
Agency Safety Plan (PTASP), which ensures that
the transit agency meets or exceeds its safety
objectives through the collection, analysis, and
assessment of safety data. It also identifies and
analyzes hazards and takes action to mitigate
safety risks.

The division selects and trains Motor Coach
Operators (MCOs), provides continuous trainings
such as Verification of Transit Training (VTT),
accident retraining, return-to-work, special
assignment trainings, and OSHA/Cal OSHA-required
training for all pertinent BBB staff. The division also hosts quarterly safety meetings to communicate
safety information for all BBB staff and oversees
system-wide safety by investigating bus accidents
and incidents, tracking accident trends, and taking
measures to mitigate preventable collisions.

The division manages the department’s security
programs for customers and staff through contracts with SMPD to provide transit enforcement services on BBB buses and with a security contractor company to provide 24-hour onsite security services for the BBB campus and the safety of staff.

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - NON-DEPARTMENTAL

NON-DEPARTMENTAL
The Non-Departmental budget represents
activities that are not attributed to any
one specific department in the City.

The Non-Departmental budget includes
appropriations to manage the use of federal
funding sources such as Coronavirus Aid,
Relief, and Economic Security (CARES) Act
and the American Rescue Plan Act (ARPA);
payments to pay down the California
Public Employees’ Retirement System
(CalPERS) unfunded liability; annual
required contribution (ARC) to prefund
Other Post-Employment Benefits (OPEB)
liabilities; payment to the Santa MonicaMalibu Unified School District (SMMUSD) in return for the use of certain school
district facilities; debt service payments;
and transfers to/from other funds such as
a transfer per the Advisory Measure GS to
fund schools, homelessness prevention, and
affordable housing.

Non-Dept

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

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FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - NON-DEPARTMENTAL
Non-Dept

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
General Fund
Salaries and Wages $ (1,678,766) $ 960,149 $ 6,465,228 $ 5,784,057 $ 4,404,310 Supplies and Expenses 37,938,568 104,093,471 52,285,913 51,095,425 56,217,058 Subtotal 36,259,802 105,053,620 58,751,141 56,879,482 60,621,368 Airport Fund
Salaries and Wages (2,372) 7,966 22,719 822 863
Supplies and Expenses 1,873,493 (6,756,108) 682,371 636,960 659,698 Subtotal 1,871,121 (6,748,142) 705,090 637,782 660,561
Beach Recreation Fund
Salaries and Wages (4,435) 17,873 69,005 28,170 29,578
Supplies and Expenses (2,667,639) 74,238 86,811 (2,614,571) (2,483,664) Subtotal (2,672,074) 92,111 155,816 (2,586,401) (2,454,086) Big Blue Bus Fund
Salaries and Wages (158,561) 249,687 735,698 294,733 309,469 Supplies and Expenses (106,034) (502,923) 38,047 (168,557) (141,802) Subtotal (264,595) (253,236) 773,745 126,176 167,667
Cemetery Fund
Salaries and Wages (24,589) (20,785) 25,762 - -
Supplies and Expenses (536,748) (483,094) (385,071) (375,716) (375,660) Subtotal (561,337) (503,879) (359,309) (375,716) (375,660) Clean Beaches & Ocean Parcel Tax Fund
Salaries and Wages - - 5,223 - -
Supplies and Expenses (13,827,237) 1,239,933 2,750,768 4,778,277 3,807,053 Subtotal (13,827,237) 1,239,933 2,755,991 4,778,277 3,807,053 Community Broadband Fund
Salaries and Wages (22) 3,037 80,247 - -
Supplies and Expenses 222,000 822,000 222,000 - -
Subtotal 221,978 825,037 302,247 - -
Community Development Block Grant (CDBG) Fund
Supplies and Expenses 283,471 149,502 247,065 289,206 242,890 Subtotal 283,471 149,502 247,065 289,206 242,890
Gas Tax Fund
Supplies and Expenses 2,001,131 2,174,930 2,686,281 2,632,472 2,688,969 Subtotal 2,001,131 2,174,930 2,686,281 2,632,472 2,688,969 Housing Authority Fund
Supplies and Expenses (129,000) (92,355) (65,258) 239,152 353,897 Subtotal (129,000) (92,355) (65,258) 239,152 353,897
Local Return Fund
Supplies and Expenses 550,700 684,378 738,000 965,938 965,938 Subtotal 550,700 684,378 738,000 965,938 965,938
Low/Moderate Income Housing Asset Fund
Supplies and Expenses (3,697,355) 362,827 372,657 389,364 389,364 Subtotal (3,697,355) 362,827 372,657 389,364 389,364
General Fund
Salaries and Wages $ (1,678,766) $ 960,149 $ 6,465,228 $ 5,784,057 $ 4,404,310 Supplies and Expenses 37,938,568 104,093,471 52,285,913 51,095,425 56,217,058 Subtotal 36,259,802 105,053,620 58,751,141 56,879,482 60,621,368 Airport Fund
Salaries and Wages (2,372) 7,966 22,719 822 863
Supplies and Expenses 1,873,493 (6,756,108) 682,371 636,960 659,698 Subtotal 1,871,121 (6,748,142) 705,090 637,782 660,561
Beach Recreation Fund
Salaries and Wages (4,435) 17,873 69,005 28,170 29,578
Supplies and Expenses (2,667,639) 74,238 86,811 (2,614,571) (2,483,664) Subtotal (2,672,074) 92,111 155,816 (2,586,401) (2,454,086) Big Blue Bus Fund
Salaries and Wages (158,561) 249,687 735,698 294,733 309,469 Supplies and Expenses (106,034) (502,923) 38,047 (168,557) (141,802) Subtotal (264,595) (253,236) 773,745 126,176 167,667
Cemetery Fund
Salaries and Wages (24,589) (20,785) 25,762 - -
Supplies and Expenses (536,748) (483,094) (385,071) (375,716) (375,660) Subtotal (561,337) (503,879) (359,309) (375,716) (375,660) Clean Beaches & Ocean Parcel Tax Fund
Salaries and Wages - - 5,223 - -
Supplies and Expenses (13,827,237) 1,239,933 2,750,768 4,778,277 3,807,053 Subtotal (13,827,237) 1,239,933 2,755,991 4,778,277 3,807,053 Community Broadband Fund
Salaries and Wages (22) 3,037 80,247 - -
Supplies and Expenses 222,000 822,000 222,000 - -
Subtotal 221,978 825,037 302,247 - -
Community Development Block Grant (CDBG) Fund
Supplies and Expenses 283,471 149,502 247,065 289,206 242,890 Subtotal 283,471 149,502 247,065 289,206 242,890
Gas Tax Fund
Supplies and Expenses 2,001,131 2,174,930 2,686,281 2,632,472 2,688,969 Subtotal 2,001,131 2,174,930 2,686,281 2,632,472 2,688,969 Housing Authority Fund
Supplies and Expenses (129,000) (92,355) (65,258) 239,152 353,897 Subtotal (129,000) (92,355) (65,258) 239,152 353,897
Local Return Fund
Supplies and Expenses 550,700 684,378 738,000 965,938 965,938 Subtotal 550,700 684,378 738,000 965,938 965,938
Low/Moderate Income Housing Asset Fund
Supplies and Expenses (3,697,355) 362,827 372,657 389,364 389,364 Subtotal (3,697,355) 362,827 372,657 389,364 389,364
Non-Dept

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

7.A.a
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Non-Dept

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Miscellaneous Grants Fund
Supplies and Expenses 17,156,546 15,710,876 157,144 162,743 162,743 Subtotal 17,156,546 15,710,876 157,144 162,743 162,743
Parking Authority Fund
Supplies and Expenses 10,998,895 - - - -
Subtotal 10,998,895 - - - -
Pier Fund
Salaries and Wages (12,165) (3,147) 73,603 9,445 9,917
Supplies and Expenses (2,066,985) (3,411,613) (2,814,738) (585,734) (3,570,382) Subtotal (2,079,150) (3,414,760) (2,741,135) (576,289) (3,560,465) Resource Recovery & Recycling Fund
Salaries and Wages (110,241) 9,688 250,693 89,704 94,189 Supplies and Expenses 231,217 272,312 1,141,235 1,185,175 1,207,273 Subtotal 120,976 282,000 1,391,928 1,274,879 1,301,462
SCAQMD AB 2766 Fund
Supplies and Expenses 7,317 7,463 - - -
Subtotal 7,317 7,463 - - -
Self-insurance, Bus Fund
Supplies and Expenses 4,309,608 3,611,543 3,466,949 4,709,930 5,391,090 Subtotal 4,309,608 3,611,543 3,466,949 4,709,930 5,391,090 Self-insurance, General Liability/Auto Fund
Supplies and Expenses 64,013,018 15,374,309 6,226,993 8,682,233 10,094,358 Subtotal 64,013,018 15,374,309 6,226,993 8,682,233 10,094,358 Self-insurance, Risk Management Administration Fund
Salaries and Wages (7,321) 14,033 41,851 23,697 24,882
Supplies and Expenses (1,992,253) (2,059,268) (2,053,007) (2,846,696) (2,987,662) Subtotal (1,999,574) (2,045,235) (2,011,156) (2,822,999) (2,962,780) Self-insurance, Workers' Compensation Fund
Supplies and Expenses 14,960,962 10,875,524 14,412,574 15,526,658 15,961,548 Subtotal 14,960,962 10,875,524 14,412,574 15,526,658 15,961,548 Special Revenue Source Fund
Supplies and Expenses (13,726,217) (7,916,973) (7,080,326) (6,761,732) (6,777,887) Subtotal (13,726,217) (7,916,973) (7,080,326) (6,761,732) (6,777,887) Stormwater Management Fund
Supplies and Expenses 749,292 1,372,377 1,321,749 1,338,092 1,431,365 Subtotal 749,292 1,372,377 1,321,749 1,338,092 1,431,365 TORCA Fund
Supplies and Expenses 51,833 178,139 86,268 116,472 116,472 Subtotal 51,833 178,139 86,268 116,472 116,472
Vehicle Management Fund
Salaries and Wages (30,187) 6,292 57,956 27,161 28,519
Supplies and Expenses 60,833 63,311 58,960 4,690 4,874
Subtotal 30,646 69,603 116,916 31,851 33,393
g(,) (,) ,,,
Supplies and Expenses (2,066,985) (3,411,613) (2,814,738) (585,734) (3,570,382) Subtotal (2,079,150) (3,414,760) (2,741,135) (576,289) (3,560,465) Resource Recovery & Recycling Fund
Salaries and Wages (110,241) 9,688 250,693 89,704 94,189 Supplies and Expenses 231,217 272,312 1,141,235 1,185,175 1,207,273 Subtotal 120,976 282,000 1,391,928 1,274,879 1,301,462
SCAQMD AB 2766 Fund
Supplies and Expenses 7,317 7,463 - - -
Subtotal 7,317 7,463 - - -
Self-insurance, Bus Fund
Supplies and Expenses 4,309,608 3,611,543 3,466,949 4,709,930 5,391,090 Subtotal 4,309,608 3,611,543 3,466,949 4,709,930 5,391,090 Self-insurance, General Liability/Auto Fund
Supplies and Expenses 64,013,018 15,374,309 6,226,993 8,682,233 10,094,358 Subtotal 64,013,018 15,374,309 6,226,993 8,682,233 10,094,358 Self-insurance, Risk Management Administration Fund
Salaries and Wages (7,321) 14,033 41,851 23,697 24,882
Supplies and Expenses (1,992,253) (2,059,268) (2,053,007) (2,846,696) (2,987,662) Subtotal (1,999,574) (2,045,235) (2,011,156) (2,822,999) (2,962,780) Self-insurance, Workers' Compensation Fund
Supplies and Expenses 14,960,962 10,875,524 14,412,574 15,526,658 15,961,548 Subtotal 14,960,962 10,875,524 14,412,574 15,526,658 15,961,548 Special Revenue Source Fund
Supplies and Expenses (13,726,217) (7,916,973) (7,080,326) (6,761,732) (6,777,887) Subtotal (13,726,217) (7,916,973) (7,080,326) (6,761,732) (6,777,887) Stormwater Management Fund
Supplies and Expenses 749,292 1,372,377 1,321,749 1,338,092 1,431,365 Subtotal 749,292 1,372,377 1,321,749 1,338,092 1,431,365 TORCA Fund
Supplies and Expenses 51,833 178,139 86,268 116,472 116,472 Subtotal 51,833 178,139 86,268 116,472 116,472
Vehicle Management Fund
Salaries and Wages (30,187) 6,292 57,956 27,161 28,519
Supplies and Expenses 60,833 63,311 58,960 4,690 4,874
Subtotal 30,646 69,603 116,916 31,851 33,393
Non-Dept

EXPENDITURES
2020-21
ACTUAL
2021-22
ACTUAL
2022-23

REVISED
BUDGET
2023-24

PROPOSED
BUDGET
2024-25
BUDGET
PLAN
Wastewater Fund
Salaries and Wages (5,592) 24,083 65,667 17,978 18,877
Supplies and Expenses 14,947,487 (552,236) (1,333,692) (3,686,619) (2,763,211) Subtotal 14,941,895 (528,153) (1,268,025) (3,668,641) (2,744,334) Water Fund
Salaries and Wages (15,225) 65,500 104,078 46,827 49,169 Supplies and Expenses 1,221,097 428,007 1,246,822 1,307,071 1,344,126 Subtotal 1,205,872 493,507 1,350,900 1,353,898 1,393,295 Total All Funds
Salaries and Wages (2,049,476) 1,334,376 7,997,730 6,322,594 4,969,773 Supplies and Expenses 132,828,000 135,720,570 74,496,515 77,020,233 81,938,448 Total Non-Departmental $ 130,778,524 $ 137,054,946 $ 82,494,245 $ 83,342,827 $ 86,908,221 FY 2023-25 PROPOSED BIENNIAL BUDGET

DEPARTMENTAL SUMMARIES - NON-DEPARTMENTAL

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PERSONNEL AND STAFFING

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PERSONNEL AND STAFFING - ORGANIZATIONAL CHART

CITY COUNCIL
MAYOR Gleam Davis / MAYOR PRO TEM Lana Negrete
COUNCILMEMBER Phil Brock / COUNCILMEMBER Oscar de la Torre COUNCILMEMBER Christine Parra / COUNCILMEMBER Caroline Torosis COUNCILMEMBER Jesse Zwick

RECORDS & ELECTION

SERVICES (CITY CLERK)
Denise Anderson-Warren

TRANSPORTATION
Edward F. King

FINANCE
Gigi Decavalles-Hughes

INFORMATION SERVICES
Joseph Cevetello

COMMUNITY

DEVELOPMENT
David Martin

HOUSING AND HUMAN

SERVICES
Danielle Noble, Acting Director
FIRE
Danny Alvarez

LIBRARY
Erica Cuyugan
POLICE
Ramon Batista

RECREATION AND ARTS
Vacant

HUMAN RESOURCES
Lori Gentles

CITY ATTORNEY
Douglas Sloan

CITY MANAGER
David White

PUBLIC WORKS
Rick Valte
DEPUTY

CITY MANAGER
Anuj Gupta

ASSISTANT

CITY MANAGER
Susan Cline

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PERSONNEL AND STAFFING - SUMMARY OF PERSONNEL BY FUND

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PERSONNEL AND STAFFING - SUMMARY OF PERSONNEL BY FUND

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CAPITAL IMPROVEMENT PROGRAM

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CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET FY 2023-24 THROUGH FY 2026-27 CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program (CIP) budget process is a five-year planning cycle and is updated biennially. On June 28, 2022, Council adopted the first year and approved the second year of the FY 2022-24 Biennial Capital Improvement Program Budget. In the face of the pandemic’s impact on capital project and construction program resources, only a very limited number of projects were approved in the FY2022-24 Biennial CIP Budget cycle.

Those projects represented critical infrastructure needs, projects that could not be deferred without compromising essential operations or public health and safety, and projects that would generate revenue. The changes outlined in this Addendum are revisions to the second year of the approved Biennial Budget, FY 2022-24. These changes are limited to priority needs that have arisen during the first year of the Biennial Budget and cannot be deferred until the next biennial budget process. However, absent new General Fund resources, departments did identify alternative funding options, such as grant resources, special revenue funds, Local Return Funds, BBB Enterprise Funds and Community Development Block Grant resources to fund CIP projects.

FY 2024-27 budget plan amounts are included as a planning tool to demonstrate total anticipated capital funding needs. However, project needs will be re-evaluated during each biennial budget cycle to ensure that budgets are adjusted to fall within available funding limits and to best reflect updated City priorities.

DEFINITION OF CAPITAL PROJECTS
The Capital Improvement Program is a five-year financial plan for the acquisition, expansion or rehabilitation of land, buildings and other major infrastructure. Projects included in the CIP budget are those with costs exceeding $50,000 and with useful lives of more than three years; most involve public infrastructure construction or major equipment procurement.

FY 2023-24 EXCEPTION-BASED CIP BUDGET
The exception-based budget process occurs in the second year of the biennial budget period, and only projects that are highly urgent are considered. Project requests are submitted to and evaluated by the CIP Team comprised of the City Manager, Assistant City Manager, Director of Finance, and the Director of Public Works which recommends funding or provides feedback for projects best reflecting current City priorities. CIP Project applications are also evaluated within the context of available funding limits to ensure that extremely limited resources fund priority projects while maintaining the City’s existing infrastructure and minimize future replacement costs. Capital budget recommendations are presented to City Council and the community for consideration.

Changes to the FY 2023-24 CIP Budget as part of the CIP Exception-Based Budgeting process include:
• New allocation of Measure CS funds for two vehicles that require immediate funding; • Increases in allocations to existing projects based on revised estimates and available restricted funding; • Allocation of local and grant resources; and
• Alternative funding from federal Big Blue Bus funds.

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CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET

REVISED BUDGET SUMMARY
The revised FY 2023-24 CIP Budget totals $104.1 million. This represents an increase of $8 million from the originally approved FY 2023-24 CIP Budget. Of the total FY 2023-24 CIP budget, the General Fund portion represents $13.5 million or 13 percent. Total budget amounts represent major project support to water projects identified in the Sustainable Waster Master Plan, Water and Wastewater Main Replacement projects, and ongoing maintenance projects.

CIP BUDGET SUMMARY BY FUND

GENERAL FUND BUDGET CHANGES
The CIP Team evaluated requests and approved $0.5 million in General Fund budget increases for the FY 2023- 24 Exception-Based CIP Budget for the Reed Park Improvements project and the internal services transfer in the Vehicle Replacement Program outlined in the Project Details section and the CIP Budget Matrix. In light of the impacts of COVID-19 on General Fund resources, funding additional new projects is not available and are included in the Unfunded CIP List.

FUND

BUDGET BUDGET PLAN
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
(01) General Fund $13,504,429 $14,989,229 $18,585,979 $15,371,629 (10) Special Revenue $2,631,300 $3,245,000 $1,176,000 $1,100,000 (11) Beach Recreation $771,720 $1,297,020 $797,020 $820,220 (12) Housing Authority $ 12,371 $12,371 $12,371 $12,371 (16) Clean Beaches & Ocean Parcel Tax - Measure V $3,260,000 $8,050,000 $50,000 $50,000 (18) SC AQMD $112,000 - - -
(19) Community Development Block Grant $1,050,000 - - - (20) Miscellaneous Grants Fund $4,880,735 $350,000 $41,700,000 $5,540,000 - (26) Gas Tax Fund $2,300,000 $2,000,000 $2,000,000 $2,000,000 (27) Local Return $8,585,200 $5,500,000 $5,500,000 $5,500,000 (50) Water $16,525,714 $18,693,414 $17,348,314 $12,634,314 (51) Wastewater $7,104,497 $7,645,797 $7,961,997 $8,092,597 (53) Pier $4,883,787 $5,333,787 $88,487 $3,888,487
(54) Resource Recovery & Recycling $4,113,227 $4,220,527 $4,487,627 $4,546,427 (57) Airport $8,213,889 $13,031,089 $9,734,689 $8,362,989 (59) Cemetery $249,093 $81,793 $81,793 $81,793
(60) Big Blue Bus $25,477,150 $5,341,550 $5,454,750 $5,500,950 (70) Vehicle Replacement $10,264,552 $5,960,302 $10,410,492 $8,083,752 (71) Computer Equipment Replacement $2,895,400 $2,956,300 $3,293,600 $3,293,600 (75) Risk Management Admin $ 34,188 $ 34,188 $ 34,188 $ 34,188 Total CIP Budget All Funds $116,869,252 $98,742,367 $ 128,717,307 $84,913,317 Less Internal Service Transfers ($12,789,547) ($12,865,947) ($13,618,447) ($13,961,247) Net Total CIP Budget All Funds $104,079,705 $85,876,420 $115,098,860 $70,952,070

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Packet Pg. 239 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 198
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET

NON-GENERAL FUND BUDGET CHANGES
The total net change proposed for Non-General Fund budgets is approximately $7.5 million. These budget increases are outlined below in the Project Details section and the CIP Budget Matrix. All of the proposed budget increases can be fully supported by an existing enterprise fund balance, grants, alternative funding or special revenue source.

The FY 2023-24 CIP budget changes includes $4.3 million in net increased budget from enterprise Big Blue Bus funding sources for projects necessary to implement the Administration Building seismic improvement project and augmentation of the 7th Street Fencing Upgrade project. The remaining significant Non-General Fund increases are from an appropriation of $1.25 million in Local Return revenues for the new Bus Terminal at PCH and Sunset Blvd and Parking Structure Study, $1.05 million in the CDBG Funds toward the 19th Street Open Space Project, Virginia Avenue Park Commercial Kitchen and Virginia Park Basketball Replacement project and $0.7 million in Special Revenue Funds for the Marine Park Basketball Court Surface Reconstruction and Park Improvement Program projects. These major budget increases as well as smaller changes are outlined below in the Project Details section and the CIP Budget Matrix.

IMPACTS ON ONGOING OPERATION
Projects that increase or expand City facilities can impact ongoing operating costs. The CIP Exception-Based changes for FY 2023-24 do not add additional ongoing operational costs.

UNFUNDED CIP PROJECTS
Projects that were eliminated or reduced to help close the City’s funding gap resulting from the global COVID-19 crisis or did not receive funding due to extremely limited resources are listed in the Unfunded Projects table and are tracked for consideration in future funding cycles. In many cases, these are still high priority projects, but they remain unfunded given the limited resources. City staff will need to explore opportunities to leverage City funds with external funding. Future project proposals will also need to acknowledge workload considerations where existing staffing capacity is fully committed to other urgent projects or limited due to staffing levels. In some cases, staff can continue preliminary or related work until it is possible to fully fund a broader effort.

While there are incremental increases in the amount dedicated to capital projects each year leading to FY 2026- 27, these increases will not be sufficient to address deferred infrastructure and equipment maintenance, price escalation, and a renewed focus on community amenities that were put on hold during the pandemic, such as the Memorial Park Expansion project and planning for the Airport closure.

PROJECT DETAILS
This section outlines proposed project budget increases described in the revised budget summary and CIP Budget Matrix. Budget increases include additional budget appropriations to projects that have revised estimates, as well as new projects that have urgent budget needs or reflect a priority that cannot be deferred until the next biennial CIP budget process. The following projects are organized by department and then by title.

7.A.a
Packet Pg. 240 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 199
Project #
C0738
Target Completion Date
FY 2024-25
Total Project Budget
$1,777,789
Project Description
This project would provide additional funds for
new fencing along 7th Street, bus stop amenities
designed to improve the customer experience such
as the installation of trash receptacles, seating,
signage, real-time signs, automatic gates and lighting. This project will also include shared mobility parking and a small off leash park for dogs. To further enhance the customer experience, the bus stop will also feature outdoor dining spaces and a shared mobility space to pick-up or drop off e-bikes and e-scooters for downtown residents, visitors, and employees . Funding in the amount of $640,700 was included in the FY 2018-20 CIP budget and $837,089 was included in the FY 2021-22 CIP Budget. The additional $300,000 in federal funds will augment the existing funding and will ensure the funding of the design and construction associated with this project.

Project Justification
This unique and innovative project garnered visibility and support and earned SaMoDoT federal funding in support of the project.

Department of Transportation
7TH STREET FENCING UPGRADE
Fund Account FY 2023-24
Big Blue Bus Fund C6007380.689000 $300,000
TOTAL PROJECT BUDGET $300,000
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET

7.A.a
Packet Pg. 241 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 200
Project #
C0740
Target Completion Date
FY 2025-26
Total Project Budget
$6,780,000
Project Description
The original scope of work for this project included
seismic retrofit work for addressing structural
deficiencies in BBB’s operations-administration
building identified in a comprehensive facility
structural analysis that was completed in FY 2019-120. The scope included an alternative analysis for adding more space to the Motor Coach Operator Ready Room on the 1st floor, and modifications to BBB’s Communication and Dispatch Center located on the first floor. The project was initially de-scoped due to budgetary reasons as a result of staff restructuring and service reductions due to COVID 19. The new scope of work includes all seismic retrofit work on the building and the subterranean parking structure sheer walls, and minor modifications to the 2nd floor outdoor balcony (including purchase of outdoor furniture) to provide Motor Coach Operators and staff an outdoor break and eating area to enhance wellbeing. Funding in the amount of $2,780,000 was included in the FY 2020-22 CIP budget and the additional $4,000,000 increase will address the scope of the project and escalation costs.

Project Justification
As a result of a comprehensive facility infrastructure assessment, it was determined that BBB’s Operations – Administration Facility required seismic retrofit work to ensure the building was safe for staff. During the assessment, staff scoped out a project option for the potential expansion of the MCO Ready Room on the 1st floor and the Communication/Dispatch Office to address adequate healthy space for Motor Coach Operators (MCO’s) to appropriately take breaks and to accommodate BBB’s new Radio/CAD/AVL equipment in the Communication Center.

Department of Transportation

ADMINISTRATION BUILDING UPGRADES
Fund Account FY 2023-24
Big Blue Bus Fund C6007400.689000 $4,000,000
TOTAL PROJECT BUDGET $4,000,000
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET

7.A.a
Packet Pg. 242 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 201
Project #
C0884
Target Completion Date
FY 2024-25
Total Project Budget
$1,000,000
Project Description
This project would fund the construction of a
transit hub which would include bus shelters,
benches, real-time and wayfinding signage, trash
cans , bike racks, and lighting. In addition, a full turn around for bus drop-off and pick-up with any required ramps would be created.

Project Justification
This project is needed to create a transit hub where Big Blue Bus Route 9 can provide direct access, enhance connectivity with Metro's PCH service, and provide a place to terminate and turnaround. Currently, BBB Route 9 travels on Sunset but does not reach PCH because there is no place to terminate or turnaround, and a major gap in transit service exists for people connecting from BBB Route 9 to the rest of the transit network along the coast.

The transit hub will provide direct access to the beach for transit riders, including those with disabilities. Besides beach access, BBB Route 9 could also be used to connect Metro's PCH service.

Department of Transportation

BUS TERMINAL AT PCH AND SUNSET BLVD
Fund Account FY 2023-24
Local Return – Prop A C2708840.689140 $1,000,000
TOTAL PROJECT BUDGET $1,000,000
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET

7.A.a
Packet Pg. 243 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 202
Project #
C0885
Target Completion Date
FY 2023-24
Total Project Budget
$250,000
Project Description
This project would fund a parking garage study/
analysis on parking supply and demand that will
inform future decisions on parking lots.

Project Justification
To make informed decisions on the City's parking garage infrastructure and surface lots, a comprehensive study is needed. The selected consultant will analyze the current parking operations and management practices within the Downtown area, during both peak and non-peak conditions and make planning, financial, and operational recommendations for the project area.

Department of Transportation

PARKING STRUCTURE STUDY
Fund Account FY 2023-24
Local Return -Meas. M C2708850.689110 $250,000
TOTAL PROJECT BUDGET $250,000
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET

7.A.a
Packet Pg. 244 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 203
Project #
C0818
Target Completion Date
FY 2024-25
Total Project Budget
$1,204,115
Project Description
The Wilshire Transportation Safety Project will
install transportation safety improvements at
seven high crash intersection locations on Wilshire
Blvd. The Wilshire Blvd Safety Study identified
these locations based on community input, adjacency to schools and parks, and amount of crash incidents.

The project would reduce crashes, significantly enhance crossing conditions for people walking, and improve connections to bus service. The additional available grant funding will ensure project scope is completed.

Project Justification
This project is key in advancing Santa Monica’s Vision Zero Action Plan and Pedestrian Action Plan goal of reducing the occurrence of fatal and severe traffic related injuries. The City’s Vision Zero Traffic Safety Analysis identified Wilshire Blvd as a priority corridor for road safety improvements as multiple intersections rank in the top ten citywide for the amount of fatal and severe injuries. The recently conducted Wilshire Blvd Safety Study gathered extensive community input and evaluated crash data and identified seven priority locations for safety improvements.

Department of Transportation

WILSHIRE ACTIVE TRANSPORTATION SAFETY PROJECT
Fund Account FY 2023-24
Misc. Grant C2008180.689260 $108,115
TOTAL PROJECT BUDGET $108,115
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET

7.A.a
Packet Pg. 245 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 204
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET Project #
C0882
Target Completion Date
FY 2023-24
Total Project Budget
$500,000
Project Description
This project would fund Phase I development of the
2018 19th Street parcel and would involve grading
and preparing the land for general accessibility
before installing a community garden aspect in a
future Phase II.

Project Justification
The City purchased the 2018 19th Street parcel from the Housing Fund in FY 2019-20, using a mix of CDBG and General Funds. The use of CDBG funds obligates the City to follow through on its commitment to develop the space into a neighborhood serving amenity. Once developed, this 19th street space will provide a valuable amenity to this Pico Neighborhood community. Currently the lot remains unused and fenced. Preliminary community engagement, which began prior to the pandemic, paused when the City lost park planning staff. The Recreation and Parks Commission has indicated a desire to develop an open space and community garden. Staff are now poised begin phased development of the land for this purpose, first opening the space for public access in Phase I before developing and integrating the community garden aspect in Phase II.

Public Works
19TH STREET OPEN SPACE PROJECT - PHASE 1
Fund Account FY 2023-24
CDBG Fund C1908820.689000 $500,000
TOTAL PROJECT BUDGET $500,000

7.A.a
Packet Pg. 246 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 205
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET Project #
C0886
Target Completion Date
FY 2023-24
Total Project Budget
$170,000
Project Description
This project would install double bottom cylinders
that are required by elevator code, ASME A17.1
for safety purposes. Due to the age of the elevator,
re-occurring repair costs, and single jack cylinder
being used the elevator needs to be retrofitted.

Project Justification
The existing underground hydraulic cylinder, piston, and cylinder head will need to be removed and replaced with a new double bottom design cylinder with sealed PVC encasement. The completion of the repairs will comply with current building codes.

Public Works

CEMETERY ELEVATOR RETROFIT
Fund Account FY 2023-24
Cemetery Fund C5908860.689000 $170,000
TOTAL PROJECT BUDGET $170,000

7.A.a
Packet Pg. 247 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 206
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET Project #
C0880
Target Completion Date
FY 2023-24
Total Project Budget
$414,700
Project Description
This project funds the reconstruction of the two
asphalt basketball courts by grinding down the
existing asphalt and resurfacing the court. A new
layer of asphalt will be then added to the courts
along with the appropriate painted markings.

Project Justification
Marine Park basketball courts are the oldest courts in the city (built before 1986) and require repair. If this project is not completed the basketball courts will need to remain fenced off and closed for the foreseeable future. The cracks were patched in 2022, however, the patches did not work, and the cracks have returned requiring a full reconstruction is needed.

Public Works

MARINE PARK BASKETBALL COURT SURFACE RECONSTRUCTION
Fund Account FY 2023-24
Special Revenue Fund C1008800.689000 $414,700
TOTAL PROJECT BUDGET $414,700

7.A.a
Packet Pg. 248 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 207
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET Project #
C0881
Target Completion Date
Ongoing
Total Project Budget
Ongoing
Project Description
This project would address emergency repairs
and deferred maintenance in parks, identified
by the priorities identified in the Park Condition
Assessment, in order to ensure park assets remain
clean, safe and open. Improvements could include park lighting, sport courts, field and playground equipment, dog parks, exercise equipment, pathways and trails.

Project Justification
Due to budget reductions and deferred maintenance, combined with high use during the pandemic, park assets are beginning to wear out, becoming unsafe for use, or even require closure. This CIP would address emergency repair and deferred maintenance projects in parks. This work would ensure parks remain clean and safe for all citizens and visitors. The projects will be prioritized using the Park Condition Assessment.

Public Works

PARK IMPROVEMENT PROGRAM
Fund Account FY 2023-24
Special Revenue Fund C1008280.689000 $250,000
TOTAL PROJECT BUDGET $250,000

7.A.a
Packet Pg. 249 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 208
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET Project #
C0597
Target Completion Date
FY 2023-24
Total Project Budget
$200,000
Project Description
This project would fund the installation of
additional lighting, address deferred maintenance,
and replace amenities that have exceeded their
useful life at Reed Park. Priority will be given to
repairs identified in the upcoming Park Condition Assessment and those that provide a Clean and Safe Santa Monica.

Project Justification
This project would enhance park amenities and public safety which would help provide residents with a feeling of security and comfort and encourage use of Santa Monica parks by all park patrons.

Public Works

REED PARK IMPROVEMENT
Fund Account FY 2023-24
General Fund C0105970.689000 $200,000
TOTAL PROJECT BUDGET $200,000

7.A.a
Packet Pg. 250 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 209
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET Project #
C0883
Target Completion Date
FY 2023-24
Total Project Budget
$400,000
Project Description
This project funds the reconstruction of the
basketball court at Virginia Avenue Park. A new
layer of asphalt will be added to the court along
with the appropriate painted markings.

Project Justification
The Virginia Avenue Park basketball court is in increasing disrepair and will soon result in safety hazards for basketball players. If the court is not resurfaced and repaired, it may need to be temporarily closed until funds can be identified.

Public Works

VIRGINIA AVENUE PARK BASKETBALL COURT REPLACEMENT
Fund Account FY 2023-24
CDBG Fund C1908830.689000 $400,000
TOTAL PROJECT BUDGET $400,000

7.A.a
Packet Pg. 251 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 210
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET Project #
C0813
Target Completion Date
FY 2023-24
Total Project Budget
$750,000
Project Description
This project funds the conversion of the current
Virginia Avenue Park Kitchen into a licensed
commercial kitchen that will generate economic
growth in local neighborhoods through small
business incubation, entrepreneur development, and job-training. The VAP Kitchen will function as an economic driver in the Pico Neighborhood by 1) Giving residents access to a licensed commercial kitchen where they can prepare food for public sale and become official food vendors to cater small and larger City-sponsored events as well as other public and private events; 2) Generating economic growth in local neighborhoods in the form of small business incubation and development, and job-training sites; and 3) Promoting community connectedness, partnership, culture and entrepreneurship. The FY 2020-21 budget included $100,000 from the Economic Recovery Fund and federal Community Development Block Grant funds in the amount of $500,000 were awarded in the 2021-22 for design, construction, and other eligible costs. An additional $150,000 is now required to complete the project due to increasing costs of construction and the unanticipated loss of expected funding from a previously identified external funding source.

Project Justification
Converting the Virginia Avenue Park Kitchen into a commercial kitchen has been one of the key suggestions brought to light by Familias Latinas Unidas and other residents for several years. Santa Monica City Council proposed a comprehensive economic development program declaring "incubating small businesses and entrepreneurs" as one of the plan's five priorities.

Public Works

VIRGINIA AVENUE PARK COMMERCIAL KITCHEN
Fund Account FY 2023-24
CDBG Fund C1908130.689000 $150,000
TOTAL PROJECT BUDGET $150,000

7.A.a
Packet Pg. 252 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 211
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET Project #
C0001
Target Completion Date
Ongoing
Total Project Budget
Ongoing
Project Description
The Fleet Vehicle Replacement Program funds
the ongoing replacement of City fleet vehicles
according to an established vehicle replacement
schedule. The program is funded through internal
service contributions from other funds that use City fleet vehicles. Depreciation is charged on each vehicle every year so that the Fund has sufficient balance to purchase a new vehicle at the end of the prior vehicle's useful life. The enhancement would fund two trucks for the Homeless Operations Services Team (HoST). The staff will use the stakebed dump truck to transport all material that is collected from various encampments to the landfill. Vehicles will include 4-wheel drive so they can service the beach area as needed and remove encampments located on the sand.

Project Justification
These funds are essential for purchase of two vehicles and implementation of the HoST team. Fleet vehicles allow all staff to effectively complete daily operations and support all City strategic goals. The Program supports revenue generating enterprise Funds such as the Resource Recovery and Recycling, Water, Wastewater, and Airport Funds.

Public Works

VEHICLE REPLACEMENT PROGRAM
Fund Account FY 2023-24
Vehicle Repl. FundApproved Budget C7000010.689000 $9,985,170 Vehicle Repl. Fund- CS
Enhancement C7000010.689000 $254,000
TOTAL PROJECT BUDGET $10,239,170

7.A.a
Packet Pg. 253 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 212
Annual internal service contributions from CS funds to Vehicle Replacement Fund to account for enhancement vehicle purchase for HoST team:

Fund Account FY 2023-24
General Fund –
Enhancement Internal
Service Contribution
I0100010.689000 $254,000
TOTAL PROJECT BUDGET $254,000
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - ADDENDUM TO FY 2022-24 CIP BUDGET

7.A.a
Packet Pg. 254 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 213
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - FY 2023-24 BUDGET BY FUND

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

7.A.a
Packet Pg. 255 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 214

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

PROPOSED
BUDGET
FY 2023-24
FY2024-25 FY2025-26 FY2026-27
CIP Project
Number
Account Project Title BUDGET PLAN
Number
BUDGET
Beach Recreation (11)
C0841 C1108410.689000 ACBH Facilities Maintenance 185,000 - 185,000 700,000 200,000 200,000 C0467 C1104670.689000 Swim Facilities Planned Maintenance 65,000 - 65,000 65,000 65,000 65,000 I0003 I1100030.689000 Computer Equipment Replacement Program 18,098 - 18,098 18,098 18,098 18,098 I0002 I1100020.689000 Telecommunications Services 6,922 - 6,922 6,922 6,922 6,922 I0001 I1100010.689000 Vehicle Replacement Program - 496,700 496,700 507,000 507,000 530,200 $ 771,720 $ - $ 771,720 $ 1,297,020 $ 797,020 $ 820,220 Housing Authority (12)
I0003 I1200030.689000 Computer Equipment Replacement Program 8,220 - 8,220 8,220 8,220 8,220 I0002 I1200020.689000 Telecommunications Services 4,151 - 4,151 4,151 4,151 4,151 $ 12,371 $ - $ 1 2,371 $ 12,371 $ 12,371 $ 12,371
Clean Beaches & Ocean Parcel Tax -Measure V (16)
C0845 C1608450.689000 Pico‐Kenter Outfall and MS4 Compliance Projects - - 8,000,000 - - - C0462 C1604620.689000 Permeable Surface Alleys 50,000 - 50,000 50,000 50,000 50,000 C0499 C1604990.689000 Surface Drainage Improvements 2,710,000 - 2,710,000 - - - C0846 C1608460.689000 Watershed Facility Upgrades 500,000 - 500,000 - - - $ 3,260,000 $ - $ 3,260,000 $ 8,050,000 $ 50,000 $ 50,000 SC AQMD (18)
C0749 C1807490.689000 EV Action Plan Implementation 112,000 - 112,000 - - - $ 112,000 $ - $ 112,000 $ - $ - $ -
CDBG (19)
C0882 C1908820.689000 19th Street Open Space Project -Phase 1 - 500,000 500,000 - - - C0883 C1908830.689000 Virginia Avenue Park Basketball Court Replacement - 400,000 400,000 - - - C0813 C1908130.689000 Virginia Avenue Park Commercial Kitchen - 150,000 150,000 - - - $ - $ 1,050,000 $ 1,050,000 $ - $ - $ -
Miscellaneous Grants (20)
C0672 C2006720.689000 Beach Bike Path Ramp Connection to Santa Monica Pier 911,674 911,674 - - - C0814 C2008140.689290 Broadway Protected Bikeway: 5th Street ‐ 26th Street 161,471 161,471 - - - C0815 C2008150.689290 Colorado Avenue Protected Bikelane 350,000 350,000 - - - C0852 C2008520.689000 East Pico Blvd. Safety Project 478,475 478,475 - - - BP Budget Plan Main Street & Neilson Way Transportation Safety Improvements - - - - 5,000,000 C0840 C2008400.689000 Olympic Boulevard Improvements 1,903,000 1,903,000 - - - C0527 C2005270.689000 Pier Bridge Replacement Project (Highway Bridge Program) - - - 41,700,000 - BP Budget Plan Priority Signalized Intersections - - - - 540,000 BP Budget Plan Santa Monica Boulevard Safety Study - - 350,000 - - C0818 C2008180.689290 Wilshire Active Transportation Safety Project-MSP 968,000 968,000 - - - C0818 C2008180.689260 Wilshire Active Transportation Safety Project-TDA - 108,115 108,115 - - - $ 4,772,620 $ 108,115 $ 4,880,735 $ 350,000 $ 4 1,700,000 $ 5,540,000 Gas Tax (26)
C0460 C2604600.689610 Annual Paving and Sidewalk Repair Program - 2,300,000 2,300,000 2,000,000 2,000,000 2,000,000 $ 2,300,000 $ - $ 2,300,000 $ 2,000,000 $ 2,000,000 $ 2,000,000

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

PROPOSED
BUDGET
FY 2023-24
FY2024-25 FY2025-26 FY2026-27
CIP Project
Number
Account Project Title BUDGET PLAN
Number
BUDGET
Local Return (27)
C0460 C2704600.689110 Annual Paving and Sidewalk Repair Program-Measure M - - - 1,000,000 1,000,000 1,000,000 C0460 C2704600.689120 Annual Paving and Sidewalk Repair Program-Measure R 1,400,000 - 1,400,000 1,500,000 1,500,000 1,500,000 C0460 C2704600.689130 Annual Paving and Sidewalk Repair Program-Prop C 2,000,000 - 2,000,000 1,000,000 1,000,000 1,000,000 C0672 C2706720.689110 Beach Bike Path Ramp Connection to Santa Monica Pier-Measure M 1,888,300 - 1,888,300 - - - C0884 C2708840.689140 Bus Terminal at PCH and Sunset Blvd-Prop A - 1,000,000 1,000,000 - - - C0815 C2708150.689130 Colorado Avenue Protected Bikelane- Prop C 46,900 - 46,900 - - - C0885 C2708850.689110 Parking Structure Study - Measure M - 250,000 250,000 C0459 C2704590.689110 Streetlight Modernization Program-Measure M 1,000,000 1,000,000 - 1,000,000 1,000,000 1,000,000 C0459 C2704590.689130 Streetlight Modernization Program-Prop C 1,000,000 - 1,000,000 1,000,000 1,000,000 1,000,000 $ 7,335,200 $ 1,250,000 $ 8,585,200 $ 5,500,000 $ 5,500,000 $ 5,500,000 Water (50)
C0460 C5004600.689000 Annual Paving and Sidewalk Repair Program 250,000 - 250,000 250,000 250,000 250,000 C0853 C5008530.689000 Arcadia Water Treatment Plant Fencing Improvements 1,000,000 - 1,000,000 - - - C0804 C5008040.689000 Construction Management Software 11,000 - 11,000 12,000 13,200 14,500 C0856 C5008560.689000 Groundwater Recharge Well SM‐11i 2,238,900 - 2,238,900 - - - C0857 C5008570.689000 Groundwater Recharge Well SM‐12i 1,500,000 - 1,500,000 3,200,000 - - C0858 C5008580.689000 Groundwater Sustainability Plan Implementation 150,000 - 150,000 150,000 150,000 150,000 C0487 C5004870.689000 Non-Potable Water Main Expansion 380,300 - 380,300 1,163,400 806,300 - C0588 C5005880 689410 Olympic Wellfield Management 558,400 - 558,400 665,000 665,000 665,000 C0762 C5007620.689000 Upgrades and Improvements for the City's Water Reservoirs 2,500,000 - 2,500,000 4,500,000 4,000,000 - C0485 C5004850.689000 Water Main Improvements - City Forces 289,800 - 289,800 298,500 307,500 307,500 C0484 C5004840.689000 Water Main Replacement 6,955,600 - 6,955,600 7,737,500 10,429,300 10,500,000 I0003 I5000030.689000 Computer Equipment Replacement Program 52,857 - 52,857 52,857 52,857 52,857 I0002 I5000020.689000 Telecommunications Services 41,757 - 41,757 41,757 41,757 41,757 I0001 I5000010.689000 Vehicle Replacement Program 597,100 - 597,100 632,400 622,400 652,700 $ 16,525,714 $ - $ 16,525,714 $ 18,693,414 $ 17,348,314 $ 12,634,314 Wastewater (51)
C0460 C5104600.689000 Annual Paving and Sidewalk Repair Program 250,000 - 250,000 250,000 250,000 250,000 C0457 C5104570.689000 Hyperion Capital Payment 3,040,500 - 3,040,500 3,477,800 3,582,200 3,689,600 C0486 C5104860689000 WttMiRlt 3376500 3376500 3477800 3689600 3689600 FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - FY 2023-24 BUDGET BY FUND

7.A.a
Packet Pg. 256 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 215
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - FY 2023-24 BUDGET BY FUND

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

PROPOSED
BUDGET
FY 2023-24
FY2024-25 FY2025-26 FY2026-27
General Fund (01)
C0828 C0108280.689000 Airport Conversion Planning 1,000,000 - 1,000,000 250,000 3,000,000 - C0829 C0108290.689000 Airport Park Parking Lot and Pathway Replacement - - - 268,400 - - C0461 C0104610.689000 Alley Renewal Program - - - 350,000 350,000 350,000 C0460 C0104600.689000 Annual Paving and Sidewalk Repair Program - - - 1,000,000 1,500,000 2,000,000 C0458 C0104580.689000 Citywide Facilities Renewal Program 1,500,000 - 1,500,000 2,000,000 2,000,000 2,500,000 C0804 C0108040.689000 Construction Management Software 55,000 - 55,000 60,500 66,550 73,200 C0830 C0108300.689000 CCTV Security Camera Program 250,000 - 250,000 250,000 250,000 250,000 C0456 C0104560.689000 Fire Apparatus Replacement - - - 1,655,000 515,000 600,000 BP Budget Plan Fire Station 5 Upgrades - - - - 351,000 - C0822 C0108220.689000 Lobby Mural Recontextualization 250,000 - 250,000 - - C0489 C0104890.689000 Maintenance for Parking Structures and Lots 350,000 - 350,000 400,000 400,000 400,000 C0707 C0107070.689000 Palisades Park Road and Drainage Improvements 340,000 - 340,000 300,000 - - C0597 C0105970.689000 Reed Park Improvements - 200,000 200,000 - - - BP Budget Plan Self-contained Breathing Apparatus - - - - 1,200,000 - C0836 C0108360.689000 SMFD Portable Radio Replacement 1,500,000 - 1,500,000 - - - C0466 C0104660.689000 Surface Lot Paving Program - - - 150,000 150,000 150,000 C0467 C0104670.689000 Swim Facilities Planned Maintenance 100,000 - 100,000 100,000 100,000 100,000 C0837 C0108370.689000 Traffic Signal Maintenance - - - 300,000 300,000 300,000 C0465 C0104650.689000 Urban Forest Renewal 450,000 - 450,000 450,000 450,000 450,000 I0003 I0100030.689000 Computer Equipment Replacement Program 1,668,030 - 1,668,030 1,668,030 2,018,030 2,038,030 I0002 I0100020.689000 Telecommunications Services 352,899 - 352,899 352,899 352,899 352,899 I0001 I0100010.689000 Vehicle Replacement Program 5,234,500 5,488,500 254,000 5,434,400 5,582,500 5,807,500 13,050,429 454,000 13,504,429 14,989,229 18,585,979 15,371,629 Funds Available for General Fund CIP Projects
General Fund CIP Allotment 14,000,000 - 14,000,000 21,000,000 21,000,000 21,000,000 Adjustment to Allotment (Prior Year CIP Savings) 510,261 200,000 710,261 Measure CS Funding (Clean and Safe) 254,000 - 254,000
Subtotal 14,510,261 454,000 14,964,261
City Hall East Debt Service Contribution (1,459,832) - (1,459,832) (1,325,228) (1,163,449) (999,448) Total Funds Available for General Fund CIPs $ 13,050,429 $ 454,000 $ 13,504,429 $ 19,674,772 $ 19,836,551 $ 20,000,552 Remaining Balance - - -
Special Revenue (10)
C0814 C1008140.689000 Broadway Protected Bikeway: 5th Street ‐ 26th Street 1,331,000 - 1,331,000 - - BP Budget Plan Central Core Protected Bike Network - - - 2,342,000 - - BP Budget Plan Main Street & Neilson Way Transportation Safety Improvements - - - - - 1,000,000 C0880 C1008800.689000 Marine Park Basketball Court Surface Reconstruction -PIF - 414,700 414,700 - - - BP Budget Plan Ocean Avenue and Pico Boulevard Protected Bike Lanes - - - 500,000 1,016,000 - BP Budget Plan Ocean View Basketball Court - - - 53,000 - - C0840 C1008400.689000 Olympic Boulevard Improvements 553,000 - 553,000 - - - C0881 C1008810.689000 Park Improvement Program -PIF - 250,000 250,000 250,000 100,000 100,000 BP Budget Plan Priority Signalized Intersections - - - 100,000 60,000 - C0818 C1008180.689000 Wilshire Active Transportation Safety Project - 82,600 82,600 - - - $ 1,966,600 $ 664,700 $ 2,631,300 $ 3,245,000 $ 1,176,000 $ 1,100,000 CIP Project
Number
Account Project Title BUDGET PLAN
Number
BUDGET
C0815 C2708150.689130 Colorado Avenue Protected Bikelane Prop C 46,900 46,900 C0885 C2708850.689110 Parking Structure Study - Measure M - 250,000 250,000 C0459 C2704590.689110 Streetlight Modernization Program-Measure M 1,000,000 - 1,000,000 1,000,000 1,000,000 1,000,000 C0459 C2704590.689130 Streetlight Modernization Program-Prop C - 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 $ 7,335,200 $ 1,250,000 $ 8,585,200 $ 5,500,000 $ 5,500,000 $ 5,500,000 Water (50)
C0460 C5004600.689000 Annual Paving and Sidewalk Repair Program 250,000 - 250,000 250,000 250,000 250,000 C0853 C5008530.689000 Arcadia Water Treatment Plant Fencing Improvements 1,000,000 - 1,000,000 - - - C0804 C5008040.689000 Construction Management Software 11,000 - 11,000 12,000 13,200 14,500 C0856 C5008560.689000 Groundwater Recharge Well SM‐11i 2,238,900 - 2,238,900 - - - C0857 C5008570.689000 Groundwater Recharge Well SM‐12i 1,500,000 - 1,500,000 3,200,000 - - C0858 C5008580.689000 Groundwater Sustainability Plan Implementation 150,000 - 150,000 150,000 150,000 150,000 C0487 C5004870.689000 Non-Potable Water Main Expansion 380,300 - 380,300 1,163,400 806,300 - C0588 C5005880 689410 Olympic Wellfield Management 558,400 - 558,400 665,000 665,000 665,000 C0762 C5007620.689000 Upgrades and Improvements for the City's Water Reservoirs 2,500,000 - 2,500,000 4,500,000 4,000,000 - C0485 C5004850.689000 Water Main Improvements - City Forces 289,800 - 289,800 298,500 307,500 307,500 C0484 C5004840.689000 Water Main Replacement 6,955,600 - 6,955,600 7,737,500 10,429,300 10,500,000 I0003 I5000030.689000 Computer Equipment Replacement Program 52,857 - 52,857 52,857 52,857 52,857 I0002 I5000020.689000 Telecommunications Services 41,757 - 41,757 41,757 41,757 41,757 I0001 I5000010.689000 Vehicle Replacement Program - 597,100 622,400 597,100 632,400 652,700 $ 16,525,714 $ - $ 16,525,714 $ 18,693,414 $ 17,348,314 $ 12,634,314 Wastewater (51)
C0460 C5104600.689000 Annual Paving and Sidewalk Repair Program 250,000 - 250,000 250,000 250,000 250,000 C0457 C5104570.689000 Hyperion Capital Payment 3,040,500 - 3,040,500 3,477,800 3,582,200 3,689,600 C0486 C5104860.689000 Wastewater Main Replacement 3,376,500 - 3,376,500 3,477,800 3,689,600 3,689,600 I0003 I5100030.689000 Computer Equipment Replacement Program 43,229 - 43,229 43,229 43,229 43,229 I0002 I5100020.689000 Telecommunications Services 13,968 - 13,968 13,968 13,968 13,968 I0001 I5100010.689000 Vehicle Replacement Program 380,300 - 380,300 383,000 383,000 406,200 $ 7,104,497 $ - $ 7,104,497 $ 7,645,797 $ 7,961,997 $ 8,092,597 Pier (53)
C0615 C5306150.689000 Pier Below Deck Fire Sprinkler - - - 3,400,000 3,300,000 - C0675 C5306750.689000 Pier Deck Upgrade 4,700,000 - 4,700,000 - - - C0674 C5306740.689000 Pier Railing & Light Pole Replacement Program - - - 500,000 500,000 - C0864 C5308640.689000 Pier Trash Compactor Relocation 100,000 - 100,000 850,000 - - C0719 C5307190.689000 Pier West End Substructure Upgrade - - - 500,000 - - I0003 I5300030.689000 Computer Equipment Replacement Program 2,419 - 2,419 2,419 2,419 2,419 I0002 I5300020.689000 Telecommunications Services 10,168 - 10,168 10,168 10,168 10,168 I0001 I5300010.689000 Vehicle Replacement Program - 71,200 71,200 71,200 75,900 75,900 $ 4,883,787 $ - $ 4,883,787 $ 5,333,787 $ 88,487 $ 3,888,487

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

PROPOSED
BUDGET
FY 2023-24
FY2024-25 FY2025-26 FY2026-27
CIP Project
Number
Account Project Title BUDGET PLAN
Number
BUDGET
Resource Recovery & Recycling (54)
C0454 C5404540.689000 Refuse & Recycling Container Replacement Program 900,000 - 900,000 920,000 950,000 980,000 I0003 I5400030.689000 Computer Equipment Replacement Program 35,971 - 35,971 35,971 35,971 35,971 I0002 I5400020.689000 Telecommunications Services 7,256 - 7,256 7,256 7,256 7,256 I0001 I5400010.689000 Vehicle Replacement Program 3,170,000 3,170,000 - 3,257,300 3,494,400 3,523,200 $ 4 ,113,227 $ - $ 4,113,227 $ 4,220,527 $ 4,487,627 $ 4,546,427 Airport (57)
C0471 C5704710.689000 Airfield Pavement Maintenance 700,000 - 700,000 700,000 700,000 700,000 C0469 C5704690.689000 Airport Building / Facilities Refurbishments 6,556,000 - 6,556,000 11,574,000 8,081,000 6,998,000 C0470 C5704700.689000 Airport Parking Lot Maintenance 523,000 - 523,000 520,000 714,000 423,000 C0561 C5705610.689000 Airport Avenue Sidewalk, Street and Slope Improvements 200,000 - 200,000 - - - C0468 C5704680.689000 Airport Reconfiguration 105,000 - 105,000 105,000 105,000 105,000 I0003 I5700030.689000 Computer Equipment Replacement Program 19,502 - 19,502 19,502 19,502 19,502 I0002 I5700020.689000 Telecommunications Services 16,387 - 16,387 16,387 16,387 16,387 I0001 I5700010.689000 Vehicle Replacement Program 94,000 - 94,000 98,800 96,200 101,100 $ 8,213,889 $ - $ 8,213,889 $ 13,031,089 $ 9,734,689 $ 8,362,989 Cemetery (59)
C0886 C5908860.689000 Cemetery Elevator Retrofit - 170,000 170,000 - - - I0003 I5900030.689000 Computer Equipment Replacement Program 5,500 - 5,500 5,500 5,500 5,500 I0002 I5900020.689000 Telecommunications Services 3,093 - 3,093 3,093 3,093 3,093 I0001 I5900010.689000 Vehicle Replacement Program - 70,500 70, 73,200 500 73,200 73,200 $ 79,093 $ 170,000 $ 2 49,093 $ 81,793 $ 81,793 $ 81,793 Big Blue Bus (60)
C0738 C6007380.689000 7th Street Fencing Upgrade - 300,000 300,000 - - - C0740 C6007400.689000 Administration Building Upgrade - 4,000,000 4,000,000 - - - C0475 C6004750.689000 Bus Components - BBB 3,188,800 - 3,188,800 3,198,400 3,198,400 3,198,400 C0478 C6004780.689000 Bus Stop Amenities 80,000 - 80,000 80,000 80,000 80,000 C0866 C6008660.689000 Bus Stop Improvements 1,058,600 - 1,058,600 - - - C0747 C6007470.689000 Customer Experience Technology Enhancements 621,900 - 621,900 636,700 682,300 731,100 C0867 C6008670.689000 Customer Service Live Chat Platform 65,000 - 65,000 65,000 65,000 65,000 C0483 C6004830.689000 Facilities Upgrades & Renovations 770,900 - 770,900 350,000 350,000 350,000 C0868 C6008680.689000 Fleet Asset Management System 140,000 - 140,000 - - - C0869 C6008690.689000 HVAC Replacement 198,000 - 198,000 - - - C0477 C6004770.689000 BBB Information Technology Program 747,100 - 747,100 608,100 608,100 608,100 C0724 C6007240.689000 Propulsion Infrastructure Feasibility 13,822,800 - 13,822,800 - - - C0474 C6004740.689000 Radio Tower Equipment 129,400 - 129,400 127,100 127,100 127,100 C0479 C6004790.689000 Service Vehicles - BBB 185,000 - 185,000 - 67,600 65,000 C0482 C6004820.689000 Shop Equipment 43,400 - 43,400 200,000 200,000 200,000 C0476 C6004760.689000 Yard Improvements 75,000 - 75,000 25,000 25,000 25,000 I0002 I6000020.689000 Telecommunications Services 51,250 - 51,250 51,250 51,250 51,250 $ 21,177,150 $ 4,300,000 $ 25,477,150 $ 5 ,341,550 $ 5,454,750 $ 5,500,950

7.A.a
Packet Pg. 257 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 216
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - FY 2023-24 BUDGET BY FUND

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

APPROVED
BUDGET
FY2023-24

INCREASE/
(DECREASE)
FY 2023-24

PROPOSED
BUDGET
FY 2023-24
FY2024-25 FY2025-26 FY2026-27
CIP Project
Number
Account Project Title BUDGET PLAN
Number
BUDGET
Vehicle Management (70)
C0001 C7000010.689000 Vehicle Replacement Program 9,985,170 254,000 10,239,170 5,934,920 10,385,110 8,058,370 I0003 I7000030.689000 Computer Equipment Replacement Program 15,742 - 15,742 15,742 15,742 15,742 I0002 I7000020.689000 Telecommunications Services 9,640 - 9,640 9,640 9,640 9,640 $ 10,010,552 $ 254,000 $ 10,264,552 $ 5,960,302 $ 10,410,492 $ 8,083,752 Computer Equipment Replacement (71)
C0003 C7100030.689000 Computer Equipment Replacement Program 2,109,900 - 2,109,900 2,152,000 2,470,000 2,470,000 C0002 C7100020.689000 Telecommunication Services 785,500 - 785,500 804,300 823,600 823,600 $ 2,895,400 $ - $ 2,895,400 $ 2,956,300 $ 3,293,600 $ 3,293,600 Risk Management (75)
I0003 I7500030.689000 Computer Equipment Replacement Program 22,971 - 22,971 22,971 22,971 22,971 I0002 I7500020.689000 Telecommunications Services 6,417 - 6,417 6,417 6,417 6,417 I0001 I7500010.689000 Vehicle Replacement Program 4,800 - 4,800 4,800 4,800 4,800 $ 34,188 $ - $ 3 4,188 $ 34,188 $ 34,188 $ 34,188
TOTAL CIP BUDGET ALL FUNDS $ 108,618,437 $ 8,250,815 $ 1 16,869,252 $ 9 8,742,367 $ 128,717,307 $ 8 4,913,317 Less Internal Service Transfers (12,535,547) (254,000) (12,789,547) (12,865,947) (13,618,447) (13,961,247) NET GRAND TOTAL CIP BUDGET ALL FUNDS $ 9 6,082,890 $ 7,996,815 $ 104,079,705 $ 8 5,876,420 $ 115,098,860 $ 7 0,952,070

7.A.a
Packet Pg. 258 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 217
FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - FY 2023-24 UNFUNDED PROJECTS .

Project Title Estimated Project Costs
Infrastructure Maintenance
Camera Obscura/Art Lab Facility Maintenance $ 1,486,100 City Yards Modernization - Michigan Ave Improvements $ 11,000,000 Computer Replacement Contributions - General Fund Deferral $ 3,400,000 Downtown Parking Structures Guardrail and Waterproofing Upgrades $ 6,380,000 Fire Station 2 HVAC Replacement $ 1,000,000
Historic City Hall North Wing Building System Upgrades $ 7,700,000 Main Library Auditorium Upgrades $ 300,300
Main Library Security Camera Replacement $ 102,000
Parking Facilities Renewal Program (Annual Amount) $ 2,200,000 Parking Structure #1 Complete Remodel $ 13,370,100
Property Room Solutions, Improvements, and Updates $ 1,025,200 Public Safety Facility Security and Tenant Improvements $ 220,000 Replacement Program For Parking Access & Revenue Control Systems and Equipment (Annual) $ 26,623,300 Safety Upgrades for Santa Monica Public Library $ 880,000 Surface Parking Lot Repaving Program (General Fund and Beach Fund) Annual Amount $ 11,000,000 Vehicle Replacement Contributions - General Fund Deferral $ 8,060,000 Subtotal $ 94,747,000
New Infrastructure or Technology
EV Action Plan Implementation - EV Charging $ 3,300,000 Fire Station 3 Facility Design/Build Assessment, Demo, and New Facility $ 28,600,000 Fire Station 7 (Permanent Solution) $ 4,400,000
Fire Station 7 Tenant Improvements and Training Trailer Move $ 1,880,000 License Plate Camera Recognition Program $ 1,200,000
Permitting System $ 4,000,000
Public Landscape Division Relocation $ 2,800,000
Training Center Facility - Training Yard $ 5,126,220
Subtotal $ 5 1,306,220
1 .

7.A.a
Packet Pg. 259 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget 218
.

Project Title Estimated Project Costs
Parks
19th Street Open Space Project - Design & Construction $ 1,320,000 Airport Park Expansion Phase 1 $ 49,500,000
Clover Park Playground Reconstruction $ 2,882,000
Crescent Bay Park Improvements $ 3,633,000
Gandara Park Restoration (CalTrans Clean California Local Grant) $ 5,500,000 Memorial Park Expansion Phase 1 (add $25M from SMC and SMMUSD) $ 11,000,000 Memorial Park Expansion Phase 2-3 $ 83,600,000
Memorial Park Playground $ 330,000
Pickleball Courts $ 5,400,000
Subtotal $ 163,165,000
Pier and Beach
Beach and Pier Master Plan (Phase 2) $ 1,320,000
Pier Carousel Park Gazebos $ 616,000
Pier Deck Upgrade $ 11,990,000
Pier Railing and Light Poles $ 2,343,000
Pier Restroom Repairs $ 172,700
Pier Safety Enhancements ( PA System and Bollards) $ 2,610,520 Pier West End Substructure Upgrade $ 5,830,000
Subtotal $ 24,882,220
Planning
Library Facilities Master Plan $ 682,000
$ 682,000
Streetscape and Lighting
Bergamot Station Connectivity- Phase 2 $ 3,850,000
Lincoln Corridor Streetscape $ 7,920,000
Promenade Lighting Project $ 10,890,000
Street Light Modernization Program $ 4,950,000
Subtotal $ 27,610,000
Total Unfunded $ 362,392,440
2 Parks
19th Street Open Space Project - Design & Construction $ 1,320,000 Airport Park Expansion Phase 1 $ 49,500,000
Clover Park Playground Reconstruction $ 2,882,000
Crescent Bay Park Improvements $ 3,633,000
Gandara Park Restoration (CalTrans Clean California Local Grant) $ 5,500,000 Memorial Park Expansion Phase 1 (add $25M from SMC and SMMUSD) $ 11,000,000 Memorial Park Expansion Phase 2-3 $ 83,600,000
Memorial Park Playground $ 330,000
Pickleball Courts $ 5,400,000
Subtotal $ 163,165,000
Pier and Beach
Beach and Pier Master Plan (Phase 2) $ 1,320,000
Pier Carousel Park Gazebos $ 616,000
Pier Deck Upgrade $ 11,990,000
Pier Railing and Light Poles $ 2,343,000
Pier Restroom Repairs $ 172,700
Pier Safety Enhancements ( PA System and Bollards) $ 2,610,520 Pier West End Substructure Upgrade $ 5,830,000
Subtotal $ 24,882,220
Planning
Library Facilities Master Plan $ 682,000
$ 682,000
Streetscape and Lighting
Bergamot Station Connectivity- Phase 2 $ 3,850,000
Lincoln Corridor Streetscape $ 7,920,000
Promenade Lighting Project $ 10,890,000
Street Light Modernization Program $ 4,950,000
Subtotal $ 2 7,610,000
Total Unfunded $ 3 62,392,440
2 FY 2023-25 PROPOSED BIENNIAL BUDGET
CAPITAL IMPROVEMENT PROGRAM - FY 2023-24 UNFUNDED PROJECTS

7.A.a
Packet Pg. 260 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget FY 2023-25 PROPOSED BIENNIAL BUDGET

APPENDIX

7.A.a
Packet Pg. 261 Attachment: Attachment A - FY 2023-25 Proposed Biennial Budget (5797 : FY 2023-2025 Biennial Budget Study Session) 219
FY 2023-25 PROPOSED BIENNIAL BUDGET

APPENDIX - TARGETED BUDGET ENHANCEMENTS
Funding Source Department(s) Description Permanent
FTE
As-needed
FTE FY 2023-24 FY 2024-25
General Fund City Manager Restoration of ongoing funding for the Neighborhood Grant program
- 49,000 49,000
General Fund City Manager Resources to support Community Partnerships Program, including the We Are Santa Monica Fund,
the digital kiosks, LA28 Olympics, film and event
permits, and other public-private partnership
opportunities

1.0 411,913 415,249
General Fund Community
Development
Establishment of ongoing funding for security services
program at the Pier (Measure CS)
- 604,804 616,900
General Fund Community
Development
Restoration of key positions to enhance economic
recovery work

2.0 360,299 375,171
General Fund and
CDBG
Community
Development
Establishment of a Small Business Assistance and
Tenant Improvement Fund
- 150,000 100,000
General Fund Community
Development
Funding to enhance monitoring and enforcement of
the City’s home-sharing ordinance (Measure CS)
- 130,000 130,000
General and All
Enterprise Funds
Finance Position to support payroll operations, partially funded by enterprise funds

1.0 122,225 126,604
Risk Mgmt, Admin Finance Temporary employee hours to support the Workers' Compensation program, funded by reallocation of
funds

0.5 - -
General Fund Fire Dept Changes in the Fire Department to strengthen to improve Emergency Medical Services (EMS) delivery.

With the completion of the CRU pilot program,
resources are reallocated to a new EMS Battalion
Chief/Homeless Liaison, 3 new Captains serving in
the Emergency Incident Technician role (offset by the
deletion of 3 Firefighter positions), a part-time
Logistics position, a contracted case manager for high
users of 9-1-1, and restoration of a longer Recruit
Academy program that increases the ability to hire a
more diverse workforce. The enhancement is partially
funded by increased inspection revenues. (ongoing
and one-time).
(1.0) 0.4 235,414 143,713
Housing and Human
Services
Positions are added to support the new Housing and
Human Services Department as the organizational
point for homelessness services and programs and to
manage a larger voucher program in the Housing
Authority. Positions include the restoration of a
Housing Manager, Housing Authority Administrator,
Staff Assistant III, and a 0.5 Housing Inspector, and a new Sr Housing Specialist and Housing Specialist.

5.5 See below See below
Recreation and Arts Creation of Recreation and Arts Department to enhance leadership around recreational partnership
opportunities. Positions added include a Director,
Administrative Services Officer and an Executive
Administrative Assistant.

3.0 See below See below
30,152 49,317
452,147 690,512
555,897 698,707
General Fund Housing and Human
Services
Ongoing funding for partial restoration of the direct
service programs of CREST, PAL, and VAP
- 167,750 171,105
General and All
Enterprise Funds
Housing and Human
Services
ADA Coordinator position to oversee compliance
program, partially funded by enterprise funds

1.0 161,420 166,980
Staffing Changes Operating Expenses a
General Fund,
Housing Authority
Fund and Housing
Trust Fund
Funding (FY 2023-24 reflects prorated costs):

General Fund
Housing Authority Fund
Housing Trust Fund

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APPENDIX - TARGETED BUDGET ENHANCEMENTS
Funding Source Department(s) Description Permanent
FTE
As-needed
FTE FY 2023-24 FY 2024-25
Staffing Changes Operating Expenses a
General Fund Housing and Human
Services
Expansion of homeless multidisciplinary outreach
teams (Measure CS)
- 460,000 460,000
General Fund Housing and Human
Services
One-time funding for preparation of a Homelessness
Strategic Plan (HSP) (Measure CS)
- 400,000 -
General Fund Housing and Human
Services
Redesign of the SAMOSHEL interim housing program
to accommodate 24/7 intakes (Measure CS) (ongoing
and one-time)
- 800,000 600,000
General Fund Human Resources Funding for services to administer selection/examination processes to establish eligibility lists for employee recruitment
- 260,000 260,000
General Fund Human Resources Funding for classification and compensation studies - 140,000 140,000 General Fund Information Services Ongoing funding to maintain for previously one-time funded technology related items
- 55,999 97,918
General Fund Information Services Conversion of limited term position to permanent 1.0 179,870 196,261 General Fund Library and Public
Works
Restoration of additional service hours at the Main
Library on Saturdays, extending evening hours at all
open locations (M-TH) to 8 pm, and opening the Main
Library one hour earlier (M-TH) at 10 am. This is in
addition to maintaining services funded with one-time
funds in the prior budget cycle.

3.0 1.9 510,492 527,008
General Fund Non-Departmental Ongoing funding to support the School District’s Playground Club program
- 500,000 500,000
General Fund Non-Departmental Funding for program to offer reduced RRR rates for qualifying low-income households
- 150,000 150,000
General Fund Police Dept Funding to expand security services program at Downtown parking structures (Measure CS)
- 280,000 280,000
General Fund Police Dept Realignment of administrative positions in the Police Department
- (11,830) (12,184)
General Fund Police Dept Increase Police Department staffing levels to expand Homeless Liaison Program (HLP) and to augment
staffing in other areas of need such as the Downtown
Services Unit (Measure CS)b

7.0 2,017,804 2,084,391
General Fund Public Works Ongoing funding for maintenance of the water features at Ken Genser and Tongva Parks (Measure
CS)
- 84,756 86,451
Water Fund Public Works Staffing changes to align positions with operational responsibilities in the Water Division
- 12,406 12,777
General Fund Public Works Funding to increase tree pruning frequencies in hightraffic areas to improve safety and aesthetics of our public spaces (Measure CS)
- 120,000 120,000
General Fund and
Vehicle Mgmt.

Public Works Funding to establish specialized public space maintenance team focusing on waste and debris
generated by people experiencing homelessness
(Measure CS)

3.0 440,355 571,385
Wastewater Fund Public Works Staffing to help advance water conservation projects (Water Resources Protection Specialist and Sr.

Water Resources Protection Specialist)

2.0 307,847 320,696
Resource
Recovery &
Recycling
Public Works Staffing to enhance alley clearing, illegal dumping and bulky item pickup services, bike lane sweeping,
comply with State mandatory organics recycling, and
work towards Zero Waste goal, funded by new rate
adjustments.

18.0 (2.9) 1,722,502 1,790,110

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APPENDIX - TARGETED BUDGET ENHANCEMENTS
Funding Source Department(s) Description Permanent
FTE
As-needed
FTE FY 2023-24 FY 2024-25
Staffing Changes Operating Expenses a
Airport Fund Public Works Funding to repair and replace aging equipment at airport hangars
- 40,000 40,000
Cemetery Fund Public Works Staffing changes to align position with operational responsibilities
- 0.4 - -
BBB, Water,
Wastewater and
Airport
Public Works and
Transporation
Funding to continue the Trades Intern Program (TIP),
which focuses on supporting and empowering
vulnerable Santa Monica youth and adults

5.0 373,430 388,130
General Fund Records & Election
Services
Restoration of passport services, almost entirely
funded by new revenues

1.0 103,373 107,132
General Fund Records & Election
Services
Upgrade of Enterprise Content Management system
(ongoing and one-time funds)
- 84,810 41,070
General Fund Recreation and Arts Funding for continuation of the Art of Recovery program
- 250,000 250,000
General Fund Recreation and Arts Re-introduction of cost covering Swim Center conference room rental

0.1 5,777 5,893
General Fund Recreation and Arts Positions to increase public access to Community Recreation Facilities funded by reallocation of funds

8.8 - (7,042)
Beach Fund Recreation and Arts Restoration of cost covering position to address demand for event rentals at the Annenberg
Community Beach House

0.5 80,224 83,350
General Fund Recreation and Arts Restoration of cost covering access hours at Memorial Park Gym and Fitness Room and field
rentals

1.5 80,952 81,936
General Fund Recreation and Arts Creation of a new cost covering Pickleball Program, with dedicated staff provide overall program oversight

1.0 0.6 136,720 140,655
General Fund Recreation and Arts Expand cost covering classes at new SaMoHi aquatic facility

0.1 4,817 4,876
General Fund
Airport
RES, Library, CMO,

PW, CDD
Funding to support hybrid public meetings - public
comment
- 62,655 35,152
Big Blue Bus Transportation Staffing changes to support the BBB’s recruitment and training efforts, maintenance needs and security
services to restore bus service to pre-pandemic levels

4.0 1,574,579 1,626,599
Total 58.0 11.5 14,658,559 14,715,822
General Fund 9,351,250 8,921,992
All Other Funds 5,307,309 5,793,830
14,658,559 14,715,822
Notes:
a. Position changes are listed here, as all changes to position counts require Council approval.

Note that the change of the total Permanent FTE count listed here (58.0) and the total in the Personnel and Staffing section (46.5) of this document is 11.5 FTEs. The difference is as follows: 8.5 limited-term positions that are being extended or converted to permanent status. Those positions do not appear as changes in the Personnel and Staffing section because they were already budgeted limited-term positions in FY 2022-23; therefore, continuing those FTEs in FY 2023-24 does not change the count of FTEs year over year. Additionally, 3.0 FTE reduction for limited-term positions that expire as of June 30, 2023 are also reflected in the Personnel and Staffing section. b. On a one-time basis until positions are filled, resources will support the Directed Action Response Team (DaRT) and be saved to invest in Police technology initiatives.

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APPENDIX - BUDGET CALENDAR
March - April 2023
• Presentation of the five-year financial forecast (FY 2023-24 through FY 2027-28) • City Council receives public input and confirms budget priorities for Fiscal Year (FY) 2023-25
• Staff develops Proposed Biennial Budget
May 2023 • Publication of Proposed Biennial Budget document for FY 2023-25 • Council Budget Study Session
June 2023 • Public hearing to adopt the Budget (adoption of first year of biennial budget and approval of second year budget plan)
July 1, 2023 • Start of new fiscal year - FY 2023-24
January - February 2024 • Presentation of five-year financial forecast (FY 2024-25 through FY 2028-29) • Presentation of the FY 2023-24 mid-cycle budget review May 2024 • Proposed adjustments to the FY 2024-25 approved budget plan presented to Council (exception-based budget adjustments)
June 2024 • Public hearing and budget adoption (adoption of second year approved budget plan for FY 2024-25)
July 1, 2024 • Start of new fiscal year - FY 2024-25
October 2024 • Presentation of the FY 2023-24 year-end budget review

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APPENDIX - FISCAL POLICIES

GENERAL POLICIES
The City will maintain sound financial practices in accordance with all Federal, State and local laws and direct its financial resources towards meeting the City’s long-term goals.

The City will maintain and further develop programs to assure its long-term ability to pay the costs necessary to provide the level and quality of service required by its citizens.

The City of Santa Monica annually adopts a budget for the upcoming fiscal year. Through this budget, City Council establishes public policy by setting funding levels for departments and exercises control over City spending. The budget further serves as a financial planning tool to ensure that the inflow of resources (revenues) is adequate to meet both anticipated and unanticipated needs (expenditures).

FISCAL SUSTAINABILITY PHILOSOPHY
Santa Monica is committed to fiscal sustainability.

Fiscal sustainability means maintaining a long-term view of financial planning that anticipates and proactively addresses risks to preserve and enhance quality of life and service provision as identified and prioritized through community input.

The City commits to:

1. Informed decision-making
City staff will identify and evaluate immediate and long-term economic, social, and environmental impacts of all issues provided for Council consideration.

2. Transparency
The City will conduct all business with transparency pursuant to applicable laws and regulations. Santa Monica will proactively pursue ways to make financial information publicly available, accessible, and easy to understand.

3. Aligned investments
Santa Monica pursues opportunities within the legal framework to align investments with the City’s values and priorities as adopted by the City Council.

4. Pursuing diversified revenue sources
The City will pursue diversified revenue sources that align with community priorities and support expenditures.

5. Managing long-term liabilities
The City will proactively identify and monitor long-term financial liabilities, including unfunded pension obligations, and commits to taking actions to manage these commitments that prioritize the City’s longterm financial sustainability.

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THE BIENNIAL BUDGET
The City will follow a Biennial budget process, emphasizing long-range planning and effective program management. A biennial budget process allows staff to plan ahead, to take advantage of the efficiencies when not recreating the budget document each year to focus on strategic projects and capital budgeting, and has the added benefit of decreasing requested budget increases from one year to the next.

The Biennial Budget will comply with the Charter of the City of Santa Monica, specifically Article XV—Fiscal Administration, which provides the framework for the preparation and adoption of an annual budget for each fiscal year. This includes:
• Fiscal Year definition — July 1 through June 30.
• Proposed budget preparation by the City Manager, in consultation with each department head. • Proposed budget submission to City Council at least 35 days prior to the beginning of each fiscal year. • Budget adoption by City Council on or before June 30 following a public hearing where stakeholders are given an opportunity to comment on the proposed budget.

Before the beginning of the second year of the two-year cycle, the Council will consider and approve the exception-based budget for the second year.

The mid-year budget review analyzes the budget status at the mid-point of the year and provides an opportunity to adjust revenue projections and make expenditure appropriation changes.

The year-end budget review makes budget transfers and additional appropriations, as necessary, to ensure that expenditures are within budget authority.

Budget modifications may occur as necessary at any City Council meeting through staff report proposals that receive five affirmative votes from the members of the Council.

FY 2023-25 PROPOSED BIENNIAL BUDGET

APPENDIX - FISCAL POLICIES

6. Shared responsibility
The City recognizes a shared responsibility between the employee and employer to appropriately fund employee benefits to attract and retain employees while maintaining a long-term sustainable and balanced budget.

7. Seeking efficiency and effectiveness
Staff will continuously explore ways to operate more efficiently while preserving effectiveness.

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OPERATING BUDGET POLICIES
• The City will adopt a balanced budget annually by June 30. • The City will make all current, ongoing expenditures with current, ongoing revenues, avoiding procedures that balance current budgets by postponing needed expenditures or accruing future revenues. • The City will estimate revenues using an objective and analytical process; in the case of assumption uncertainty, conservative projections will be used.
• The City will maintain a level of expenditures that support essential services and promote quality-of-life to its citizens.
• The City will forecast its General Fund and other major fund expenditures and revenues for a five-year period and will update the forecast semi-annually. The forecast will be taken into consideration when preparing budget recommendations.
• The City will endeavor to maintain a diversified and stable revenue system to minimize the impact of shortterm fluctuations in any one revenue source. • The City will avoid targeting revenues for specific purposes whenever possible, allowing maximum flexibility in funding decisions on an annual basis.
• One-time revenues will be used for one-time expenditures only. • The City will investigate potential new revenue sources, particularly those that will not add to the tax burden of residents and local businesses.
• The City will follow an accelerated pay down of its unfunded pension liability. The acceleration will be for a period as further detailed in the section below titled, "Principles for Pension Funding". These payments will be in addition to the Annual Required Contribution.
• Additionally, on April 11, 2023, City Council authorized staff to suspend the accelerated pay down of its unfunded pension liability from FY 2022-23 to FY 2027-28 or later, pending restoration of City services and maintenance budgets and reserves.
• The City will prefund other post-employment benefit obligations (OPEB) each year, setting aside the equivalent of the actuarially-determined annual required contribution (ARC) in an irrevocable trust. • The City will work proactively with the League of California Cities and local communities to monitor and impact legislation that may impact the City financially.

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APPENDIX - FISCAL POLICIES

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CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET POLICIES
• The City will biennially plan for capital improvements for a five-year period. The CIP budget will incorporate Council priorities, community objectives, and projects that will improve operational efficiency. The CIP Biennial Budget will be presented to Council in the second year of the Operating Biennial Budget. • Future operating costs associated with new capital improvements will be projected and included in the Operating Budget forecasts.
• An inventory of the City’s physical assets, their condition, and remaining useful life will be maintained. • The City will maintain all assets at a sufficient level to protect the City’s capital investment and to minimize future maintenance and replacement costs.

BUDGETARY CONTROL
The City Council is required to adopt an annual budget for all City departments and funds with the exception of the Rent Control Fund. The City Council also serves as the governing body for the Santa Monica Redevelopment Successor Agency, the Housing Authority, the Parking Authority, and the Public Financing Authority, which adopt budgets for the Redevelopment Successor Agency, the Housing Authority and the Parking Authority Funds.

Adoption of the budget requires a majority Council vote (4 of 7 councilmembers).

The City Council approves any revisions that increase the total budgeted expenditures or revenues of any department and fund, and any changes to staffing levels, including budgeted permanent and as-needed fulltime equivalent positions. The City Manager is authorized by the City Council to allocate the budget to more detailed levels of control for administrative purposes. This includes changes between major object or program categories (i.e., Salaries & Wages, Supplies & Expenses including Capital Outlay, or Capital Improvements) within a department. Budget changes to capital improvement program accounts that change or increase project scope must be approved by Council.

Changes to the budget due to emergency work, additional project costs exceeding the budget authority, or receipt of a grant, take place throughout the year through semi-monthly Council meetings. Citywide comprehensive budget review takes place twice a year.

To change the budget after it is adopted requires a supermajority Council vote (5 of 7 councilmembers).

COMMUNITY INVOLVEMENT
Essential to the development of Santa Monica’s annual budget is feedback from individuals and organizations regarding issues or programs that they believe need to be addressed with additional resources. Input from the FY 2023-25 PROPOSED BIENNIAL BUDGET

APPENDIX - FISCAL POLICIES

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community is received through Santa Monica’s 311 Program, and through the various forums presented by City boards, commissions and community groups. Additional opportunity for public comments occurs at City Council meetings when various budget updates and priority setting reports are presented and during the formal public hearing on the proposed budget each June.

CITY OF SANTA MONICA PERFORMANCE MANAGEMENT POLICY
The City of Santa Monica supports the use of data to drive and inform decision making processes and deliver reliable results to create a model 21st Century government and will strive to develop a comprehensive system of performance measures.

PRINCIPLES FOR PENSION FUNDING
(In response to the severe economic downturn resulting from the COVID-19 pandemic, on May 5, 2020, the City Council authorized suspension of the FY 2020-21 and FY 2021-22 accelerated payments and a shift from a 13-year to a 15-year schedule. Additionally, on April 11, 2023, City Council authorized staff to suspend the accelerated pay down of its unfunded pension liability from FY 2022-23 to FY 2027-28 or later, pending restoration of City services and maintenance budgets and reserves.)
In view of continuing pension challenges, and following resident interest in the City’s plan to manage pensions, in November 2018 the City Manager established an ad hoc advisory committee made up of residents and City employees to discuss the City’s pension obligation. The Committee’s purpose was to study the issue, look at alternatives, and develop sensible recommendations for the City Manager to consider in the development of a proposed sustainable budget for community and City Council consideration. The Committee considered scenarios from the independent actuary; information from City staff on the budget process, past actions, and City’s financial status and resources; other cities’ practices and experiences; and research from group members.The Committee unanimously voted to recommend principles for an approach to pension obligation management that endorse a proactive approach to pension obligation management that minimizes total funds spent over time by decreasing the interest accrued. Moreover, the Pension Advisory Committee recommended an accelerated plan to pay down the City’s current pension unfunded liability over 13 years, to conclude in FY 2032-33. The following are the Principles:
• The GFOA and the California Actuarial Advisory Panel (CAAP) believe it is financially advantageous to repay or amortize unfunded pension liabilities. The Pension Advisory Committee believes the unfunded liability represents a looming threat to Santa Monica’s safety and quality of life through erosion of vital services; undermining workforce compensation and job security; and damaging the City’s long-term fiscal health. • The Pension Advisory Committee believes the City should maintain prudent funded status levels and an aggressive repayment plan to ensure that funds are available in the long run to meet City obligations and preserve financial flexibility to meet or maintain City obligations consistent with values of the City.

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• The Pension Advisory Committee believes the City should formally commit to a repayment period of notto-exceed 13 years for the current unfunded pension liability, concluding in FY 2032-33. By following this recommendation, the City is projected to save approximately $100 million. • In the event of a fiscal emergency, the Council would have the option to reduce the annual payment for that fiscal year to the amount required for a 15-year repayment schedule (as calculated in 2019), concluding in FY 2034-35, only after holding a public hearing and making appropriate findings.

BASIS OF BUDGETING
Basis of budgeting for the City’s budget is consistent with the Annual Comprehensive Financial Report (ACFR) with a few exceptions, primarily in non-cash adjustments.

Governmental funds, including general, special revenue, and capital project funds, are budgeted on a modified accrual basis with a focus on near-term inflows and outflows of financial resources. Revenues are recognized when they are measurable and available, while expenditures are recognized as soon as liabilities are incurred, except for debt service, capital lease obligations, inventories, and prepaid items. Year-end encumbrances are included in the fiscal year’s expenditures (actual, budgetary basis), as they represent financial resources committed for goods or services to be delivered in the near future (usually within one or two months). However, many multi-year capital projects are budgeted on a full cost basis. Year-end remaining capital budgets for active projects are continued to the next fiscal year until the completion of the project.

Proprietary funds, including enterprise and internal service funds, are budgeted on an accrual basis similar to private-sector businesses, with a focus on total economic resources. Revenues are recognized when they are earned, while expenses are recognized when the liability is incurred. Year-end encumbrances are excluded from the fiscal year’s expenses, for the transactions have not yet occurred. However, non-cash items, such as investment adjustments to market value, depreciation, amortization and bad debt expense are not budgeted. Just as with the governmental funds, multi-year capital projects are often budgeted on a full cost basis and the year-end active project budgets are continued to the next year until the completion of the project.

General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Basis of Accounting Modified Accrual Accrual
Exceptions: • Multi-year capital project budgets
are generally budgeted on a full cost
basis
• Multi-year capital project budgets
are generally budgeted on a full cost
basis
• Non-cash items, such as investment
adjustments to market value, are not
budgeted
• Non-cash items, such as investment
adjustments to market value,
depreciation, amortization, bad debt
expense, are not budgeted

APPROPRIATIONS LIMIT
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APPROPRIATIONS LIMIT
The Council will annually adopt a resolution establishing the City's appropriations limit (the Gann Limit) calculated in accordance with Article XIII-B of the Constitution of the State of California, Section 7900 et seq. of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriations limit. Under the Gann Limit, a maximum amount is established for tax-funded government services.

That amount is to be adjusted each year depending on city population, changes in non-residential assessed value, and the transfer of financial responsibility for various governmental activities from one level of government to another. Any significant amount of state tax revenue received above that Gann Limit is to lead to future tax rebates or tax cuts.

The supporting documentation used in calculating the City's appropriations limit and projected appropriations subject to the limit will be available for public and Council review at least 15 days before Council consideration of a resolution to adopt an appropriations limit. The Council will generally consider this resolution in connection with final approval of the budget.

FUND POLICIES

GENERAL FUND
The City will maintain at the end of FY 2023-24 a General Fund Operating Contingency reserve at a level that is equal to at least 13.5%, and at the end of FY 2024-25 a level that is equal to at least 14%, of the following year’s General Fund annual operating and capital expenditure budget and subsidies to other funds covered by ongoing revenues as originally adopted by Council. Strong reserves allowed the use of contingency and economic uncertainty funds during the severe economic downturn that resulted from the pandemic, while the City retained a stable Rainy Day Fund reserve level of 12.5% of ongoing expenditures in the event of a new emergency. As revenues continue to recover, the City is committed to increase its Contingency reserve by 0.5 percentage point a year until it once again reaches 15% in FY 2026-27.

Council approval will be required before expending funds from the Operating Contingency.

In addition to the General Fund Contingency, the City’s goal is to maintain an Economic Uncertainty reserve balance with the level to be established as needed.

The City will maintain a balance in the General Fund for earned vacation benefits of General Fund employees.

Compensated absences for all employees are recorded in the respective funds.

The City will seek to maintain sufficient funds in its fund balance to act as potential capital contingency fund balance. This balance is intended to be used for major capital repair where facility failure, unexpected hazards, or destruction of City property has occurred and where repair or replacement is not planned within the established capital, operations, or other replacement funds.

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EQUIPMENT REPLACEMENT FUNDS
The City will maintain a Fleet Replacement Fund to provide for the timely replacement of vehicles and related equipment. To the extent possible, the City will maintain a minimum fund balance in the Fleet Replacement Fund of at least 15% of the original purchase cost of the items accounted for in this fund. The annual contribution to this fund will generally be based on the annual use allowance, which is determined based on the estimated life of the vehicle or equipment and its original purchase cost. Interest earnings and sales of surplus equipment as well as any related damage and insurance recoveries will be credited to the Fleet Replacement Fund.

The City will maintain a Computer Equipment Replacement Fund to provide for the timely replacement of information hardware technology. The annual contribution to this fund will generally be based on the annual use allowance, which is determined based on the estimated life of the equipment and its original purchase cost. To the extent possible, the City will maintain a minimum fund balance in the Computer Equipment Replacement Program of at least 25% of the original purchase costs of the items accounted for in this fund.

WATER, WASTEWATER AND RESOURCE RECOVERY AND RECYCLING FUNDS The City will maintain reserves for the purposes of offsetting unanticipated fluctuations in Water, Wastewater or Resource Recovery and Recycling Fund revenues and expenditures to provide financial stability, including the stability of revenues and the rates and charges related to each Enterprise. The reserves are based on the following:

Water Fund
• Operating and capital reserves based on industry and bond rating agency best practices. • A rate stabilization reserve based on industry best practices.

Wastewater Fund
• Operating and capital reserves based on industry and bond rating agency best practices. • A rate stabilization reserve based on industry best practices.

Resource Recovery and Recycling Fund
• Operating and capital reserves based on industry and bond rating agency best practices.

FUND BALANCE CLASSIFICATIONS
The City’s fund balance is made of the following components, or classifications:
• Non-spendable fund balance typically includes inventories, prepaid items and other items, that by definition cannot be appropriated.

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• The restricted fund balance category includes amounts that can be used only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislations. • The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has authority to establish, modify, or rescind a fund balance commitment.
• Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. The City Manager or designee has the authority to establish, modify or rescind a fund balance assignment. • Unassigned fund balance is the residual classification for the City’s funds and includes all spendable amounts not contained in the other classifications.

The City considers restricted or unrestricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available.

The City’s committed, assigned, or unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classification could be used.

INTERFUND TRANSFERS AND LOANS
In order to achieve important public policy goals, the City has established various special revenue, capital project, debt service and enterprise funds to account for revenues whose use should be restricted to certain activities.

Accordingly, each fund exists as a separate financing entity from other funds, with its own revenue sources, expenditures and fund equity.

Any transfers between funds for operating purposes are clearly set forth in the Biennial Budget. From time to time, interfund borrowing may be appropriate; however, this is subject to the following criteria in ensuring that the fiduciary purpose for that fund is met: The Council must approve temporary interfund loans, while the Director of Finance and the City Manager are authorized to negotiate and approve terms and conditions of those loans.

INDIRECT COST ALLOCATION FOR GENERAL FUND SERVICES
Proprietary and special revenue fund programs, which are financed by service user fees or grant funding, are assessed administrative costs to reflect the true costs of doing business through the City’s indirect cost allocation plan. This plan provides a reimbursement to the General Fund for central services costs such as custodial services, personnel services, financial services, facilities maintenance, legal services, and administrative time, which is directly applicable to enterprise and special revenue fund operations. Data used in determining cost allocation is gathered from the last audited annual financials. Cost allocation plan updates will occur, at a minimum, every five years. During years between updates, a factor reflecting a blended expenditure increase will be added to the existing amount.

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USER FEE COST RECOVERY GOALS
City policy is to charge for the full costs of services provided by City Staff when such services benefit individual users rather than members of the community as a whole. The City has calculated the cost of providing various recreational services and opportunities to individuals and has discounted those costs to ensure that individuals will be able to utilize these services and opportunities. Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with cost of living and service delivery changes. A comprehensive analysis of City costs and fees should be made at least every five years. In the interim, fees will be increased annually by a factor based on the annual increase in total compensation costs, unless otherwise stated for specific fees. Fees may also be adjusted during this interim period based on supplemental analysis whenever there have been significant changes in the method, level or cost of service delivery.

ENTERPRISE FUND RATES
Water, Wastewater, Resource Recovery & Recycling
The City will set rates at levels that fully cover the total direct and indirect costs, including operations and maintenance, capital outlay, and debt service of the Water, Wastewater, and Resource Recovery and Recycling programs.

Parking
The City will set rates at levels that are needed to cover the costs to operate and maintain parking operations and structures, taking into account market conditions and City policies to encourage use of alternate transportation methods.

Big Blue Bus
Based on targets set under the Transportation Development Act, the City will strive to cover at least twenty percent of transit operating costs with fare revenues.

REPORTING POLICIES

ANNUAL REPORTING
The City will prepare annual financial statements as follows:
• In accordance with Charter requirements, the City will contract for an annual audit by a qualified independent certified public accountant. The City will strive for an unqualified auditors’ opinion. • An Annual Comprehensive Financial Report (ACFR) will be prepared and audited by a qualified independent public accounting firm.
• The City will strive to issue audited financial statements within 180 days after fiscal year end.

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• The City’s accounting and financial reporting systems will be maintained in conformance with generally accepted accounting principles and standards of the Government Accounting Standards Board, and reports will strive to meet the requirements of the GFOA’s Award for Excellence in Financing Reporting program.

INTERIM REPORTING
The City will prepare and issue timely interim reports on the City’s fiscal status to the Council and staff. This includes:
• Online access to the City’s financial management system by City staff • Monthly online reports for City staff use
• Midyear and year end reviews to Council and staff

INVESTMENT POLICY
An investment policy will be submitted annually to the City Council for review and adoption.

The City will invest public funds in a manner that will provide a market rate of return after ensuring optimum safety and meeting the daily cash flow demands of the City.

DEBT POLICY

BACKGROUND
The City maintains conservative financial policies to assure strong financial health both in the short- and long-term. The City issues debt primarily to finance large capital investments such as construction of public infrastructure or property acquisitions.

Maintaining the City’s bond rating is an important objective of the City’s financial policies. To this end, the City is constantly working to improve its financial policies, budgets, forecasts, and financial health.

Effective January 1, 2017, and in accordance with Section 8855 of the Government Code, California public agencies that issue public debt are required to certify prior to the issuance of debt that they have adopted debt policies concerning the use of debt and that the contemplated debt issuance is consistent with those local policies.

The City’s Debt Policy set forth below complies with the requirements of Section 8855.

This debt policy shall apply to obligations issued by the City, the Santa Monica Public Financing Authority, the Santa Monica Parking Authority, and the Successor Agency to the Santa Monica Redevelopment Agency.

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PURPOSE OF POLICY
This policy sets forth the criteria for issuance and repayment of debt. The primary objective of the Debt Policy is to establish criteria that will protect the City’s financial integrity while providing a funding mechanism to meet the City’s capital needs. The underlying approach of the City is, except in extraordinary circumstances, to borrow only for capital improvements that cannot be funded on a pay-as-you-go basis. The City will not issue long-term debt to finance current operations.

All debt issued will be in compliance with this policy, the debt limit noted in Article VI of the City Charter and with all other relevant state and federal regulations.

A biennial review of the Debt Policy will be performed and any changes to the Debt Policy will be brought forward for City Council consideration and approval. Further, in the event there are any recommended deviations or exceptions from the Debt Policy when a certain bond issue is structured, those exceptions will be discussed in the staff reports when the bond issue is presented for City Council’s consideration.

RESPONSIBILITY
Authority to issue debt is given by the City Council, exercising the powers reserved to the City under Section 6 of Article XI of the Constitution of the State of California and Section 400 of the City Charter of the City of Santa Monica. The Treasurer and designated staff, including the Assistant City Treasurer, assist in the duties of debt issuance, interest payments, principal repayments and other debt-related activities.

The Director of Finance is responsible for assuring that the activities related to the issuance and payment of bonds or other obligations will not jeopardize the bond rating.

PURPOSE OF FINANCING
Except in extraordinary circumstances, the City borrows money to fund long-term capital improvement projects and to refinance existing debt. The issuance of debt to fund operating deficits is not permitted.

While the preferred means of financing projects is the “pay-as-you-go” method of using current revenues to pay for capital projects because it avoids interest payments, the City would be able to undertake capital projects under this method only if sufficient cash accumulates. Prudent use of debt financing rather than pay-as- you-go funding of capital projects can distribute the cost of a project over its useful life, facilitate better allocation of resources and increase financial flexibility. Debt can also be used in conjunction with pay-as-you-go financing to pay only a portion of the project using debt if insufficient funds are available from non-debt sources.

The Treasurer, working with the Assistant Treasurer, will periodically evaluate the City’s existing debt and execute, upon approval of the City Council, a refinancing when economically beneficial. A refinancing includes the issuance of bonds to refund existing bonds.

See “Refunding Debt” for refunding considerations.

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BUDGETING AND CAPITAL PLANNING
The City shall develop and maintain a Five-Year capital planning process that includes a Biennial Capital Improvement Program budget and is approved and adopted by the City Council as part of the budget process. The capital plan is informed by the City’s Five-Year forecasting process.

The decision to utilize debt to fund all or a portion of a capital project first requires an analysis by the Finance Department of how the debt will be repaid. The source of revenues to repay the debt must be identified and the impact of repayment of the debt on existing budget commitments must be assessed.

The Finance Department is responsible for coordinating and analyzing the debt requirements. This will include timing of debt, calculation of outstanding debt, debt limitation calculations and compliance, impact on future debt burdens, and current revenue requirements.

ASSET LIFE
Generally, no debt will be issued for periods exceeding the useful life or average useful lives of projects to be financed.

TYPES OF DEBT
The following is a description of the types of long-term debt the City may issue:

General Obligation Bonds
General Obligation (GO) bonds are secured by a pledge of full faith and credit of an issuer and a promise to levy taxes in an unlimited amount as necessary to pay debt service. GO bonds usually achieve lower rates of interest than other financing instruments since they are considered to be a lower risk.

California State Constitution, Article 16 - Public Finance, Section 18, requires that the issuance of a GO bond by the City must be approved by a two-thirds majority of those voting on the bond proposition. Uses of bond proceeds are limited to the acquisition and improvement of real property.

Lease Obligations
Lease financings are long-term obligations that include Lease Revenue Bonds and Certificates of Participation.

Lease Revenue Bonds (LRBs) are lease obligations secured by an installment sale or by a lease-back arrangement between the City and the City’s Public Financing Authority, a joint powers authority, where City revenues are pledged to pay the lease payments, which are, in turn, used to pay debt service on the LRBs. Alternatively, Certificates of Participation (COPs) are lease obligations secured by a financing lease between the lessee, which would be the City, and a lessor, which may be the City’s Public Financing Authority, that undertakes the construction of a project. These obligations do not constitute indebtedness under the state constitutional debt limitation and, therefore, are not subject to voter approval.

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Payments to be made under valid leases are payable only in the year in which use and occupancy of the leased property is available, and lease payments may not be accelerated. Lease financing requires the fair market rental value of the leased property to be equal to or greater than the required debt service or lease payment schedule.

The governmental lessee is obligated to place in its Annual Budget the rental payments that are due and payable during each fiscal year the lessee has use of the leased property.

Revenue Bonds
Revenue bonds are obligations payable from revenues generated by an enterprise as defined in Section 54300 et seq. of the California Government Code. City issuance of revenue bonds is specifically authorized by Chapter 2.36 of the City’s Municipal Code. Since the debt service is directly paid by the enterprise, such debt is considered selfliquidating and generally is not considered as part of the maximum debt capacity of the issuer.

The City’s utility Revenue Bonds are payable solely from the appropriate City Enterprise Fund and are not secured by any pledge of ad valorem taxes or general fund revenues of the City. In accordance with the agreed upon bond covenants, the revenues generated by these Enterprise Funds must be sufficient to maintain required coverage levels, or the customer rates of the enterprise have to be raised to maintain the coverages. The issuance of revenue bonds does not require voter approval.

Bank Loans
Under certain circumstances, it may be advantageous to obtain financing through a direct bank loan. Bank loans can be in the form of fixed rate or variable rate loans with defined maturities or lines of credit that have variable interest rates and flexible payment provisions. One potential advantage of bank loans is that the process for execution is generally simpler and can be less expensive to issue than a public bond issue. Additionally, a bank loan can often be structured in a manner that more closely conforms with specific project or repayment considerations than a bond issue. However, since bank loans are issued in an environment less transparent than a public debt issue, it is more difficult to assess how the proposed loan rates, fees, and terms compare to the market.

The City Treasurer will consult with the City’s Financial Advisor to determine when a bank loan is the appropriate financing measure.

Assessment District Financing
The Municipal Improvement Act of 1913 provides for a local agency to form an Assessment District to finance certain infrastructure, including roadways, water and sewer facilities, storm drains, and other improvements often required in connection with new development. An Assessment District must include all properties that will benefit directly from the improvements to be constructed, and formation of the district requires an election in which at least 50% of property owners vote in favor of the district. If an Assessment District is formed, the City may levy assessments that can be utilized to directly finance the public improvements, or may be pledged to support debt service on bonds, which may be issued under the Improvement Bond Act of 1915. The assessments that are levied upon each parcel must be based upon the direct and special benefit received by the property.

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LIMITATION OF INDEBTEDNESS
The City’s indebtedness is limited by Article VI of the City Charter, which states that the bonded indebtedness of the City may not exceed the sum of 10% of the total assessed valuation of property within the City, exclusive of any indebtedness that has been or may hereafter be incurred for the purpose of acquiring or establishing a system of waterworks for the supplying of water, or for the purpose of constructing sewers or drains in the City, for which purposes a further indebtedness may be incurred by the issuance of bonds, subject only to the provisions of the State Constitution and of this Charter. The City will include all lease obligations when calculating its compliance under this debt limit even though they may not constitute bonded indebtedness.

AFFORDABILITY TARGETS
General Obligation Debt
The decision on whether or not to assume new general obligation debt shall be based on costs and benefits, current conditions of the municipal bond market, and the City’s ability to afford new debt and service it as determined by an objective analytical approach. This process shall compare generally accepted measures of affordability to the current values for the City. These measures shall include:
• Debt per capita: the outstanding principal as a percentage of population. • Debt as a percent of assessed valuation: the outstanding principal as a percentage of assessed valuation.

General Fund-Supported Debt
The most important affordability ratio used in analyzing the City’s debt position with respect to General Fund supported debt (e.g., lease obligations) is the Annual General Fund debt service/lease payment (e.g., payment on lease revenue bonds) as a percentage of available revenue or expenditures. This ratio, which pertains to only general fund backed debt, is often referred to as “lease burden.” This analysis excludes enterprise revenue bonds and other obligations supported by dedicated revenue pledges. Additionally, this analysis may exclude other General Fund liabilities such as loan obligations or the City’s annually required contribution to the pension system or retiree health care costs. Liabilities of the City’s related agencies are also excluded from the debt affordability ratios.

Credit rating agency guidelines recommend a lease burden ratio of no more than 12%; the City shall strive to maintain its lease burden ratio below 10%. Affordability analysis as determined by this measure will be undertaken before new General-Fund supported debt is issued.

In addition to the City’s direct debt burden, debt levels of underlying and overlapping entities such as counties, school districts, and special districts add to a City’s overall debt burden. The City’s proportional share of the debt of other local governmental units, which either overlap it or underlie it, is called the overlapping debt. Overlapping debt is generally apportioned based upon relative assessed value. While the City does not control debt issuance by other entities, it recognizes that its taxpayers share the overall debt burden. The City shall include a statement of overlapping debt in its initial and continuing disclosure.

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Revenue Bonds
In determining the affordability of proposed revenue bonds, the City will perform an analysis comparing projected annual net revenues (after payment of operating and maintenance expense) to estimated annual debt service.

Generally, legal covenants requiring a minimum coverage ratio are set forth in the bond documents, and are based on the level of security provided to the bondholders. The City’s revenue bonds require a legal coverage ratio of at least 120% for senior bonds and a coverage ratio of at least 100% for senior and subordinate debt combined.

Credit rating agencies point to a target coverage ratio of 200% for programs with large ongoing capital needs and 150% for programs without such needs, using historical and/or projected net revenues to cover annual debt service for bonds issued on a subordinate basis which have a 100% legal coverage ratio requirement. The City will require a rate increase to cover both operations and debt service costs, and create debt service reserve funds to maintain the required coverage ratios.

STRUCTURE OF DEBT
Term of Debt
Debt will be structured consistent with a fair allocation of costs to current and future beneficiaries or users.

Borrowings by the City should be of a duration that does not exceed the useful life of the improvement that it finances and where feasible, should be shorter than the projected economic life. The standard term of long-term borrowing is typically 15-30 years.

Debt Repayment
The City shall pay all interest and repay all debt in accordance with the terms of the bond ordinance and bond covenants. To the extent possible, the City will seek level or declining debt service repayment schedules. However, in some cases the City may seek an alternative debt service schedule to meet certain policy or operational requirements.

Variable-Rate Securities
When appropriate, the City may choose to issue securities that pay a rate of interest that varies according to a predetermined formula or results from a periodic remarketing of the securities. Due to the potential volatility of such instruments, the City will limit the use of variable-rate debt to the greater of $50 million or 20% of outstanding principal.

Derivatives
The City will not use derivatives when structuring debt.

Capitalized Interest
Where appropriate, interest may be capitalized for the construction period of a revenue-producing project so that debt service expense does not begin until the project is expected to be operational and producing revenues.

In addition, for lease back arrangements, such as those used for lease revenue bond transactions, interest may be capitalized for the construction period, until the asset is operational. Only under extraordinary circumstances will interest be capitalized for a period longer than the construction period. Capitalized interest is sometimes referred to as “funded interest.”
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Call Options/Redemption Provisions
A call option, or optional redemption provision, gives the City the right to prepay or retire debt prior to its stated maturity. This option may permit the City to achieve interest savings in the future through refunding, or in some cases, full or partial redemption of the bonds. Generally, fixed rate tax-exempt municipal bonds are structured with a 10-year call at par (no premium). Because the cost of call options can vary widely, depending largely on market conditions, an evaluation of factors such as the following will be conducted in connection with each issuance:
• The time until the bonds may be called
• The price at which the bonds may be called
• The potential to generate future interest cost savings (or call option value) • Any need for additional flexibility with respect to repayment

METHOD OF SALE
The City may issue its debt through a competitive or negotiated process. The negotiated process would be used under the following conditions.
• The bond issue is, or contains, a refinancing that is dependent on market/interest rate timing. • At the time of issuance, the interest rate environment or economic factors that affect the bond issue are volatile.
• The nature of the debt is unique and requires particular skills from the underwriter(s) involved. • The debt issued is bound by a compressed time line due to extenuating circumstances such that time is of the essence and a competitive process cannot be accomplished, or a competitive process might result in selection of an underwriter or other situations inconsistent with City policies.

When determined appropriate by the City Treasurer, the City will negotiate financing terms with banks and financial institutions for specific borrowings on a private offering basis. Typically, private placements are carried out by the City when extraneous circumstances preclude public offerings, such as an interim financing, or to avoid the costs of a public offering for smaller issuances.

The City Treasurer will consult with the City’s Financial Advisor on an issue by issue basis to determine the appropriate method of sale to be used.

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PROFESSIONAL SERVICES
The City’s Finance Department shall be responsible for the solicitation and selection of professional services that are required to administer the City’s debt program, which will follow the City’s Procurement Policy. The City Attorney’s Office will take the lead to solicit and select bond counsel. The financial advisor, bond and disclosure counsel, and trustee costs associated with the bond issuance will be paid with bond proceeds. Eligible City staff costs related to issuance of long term bonds may also be reimbursed from bond proceeds.

Financial Advisor
A Financial Advisor(s) will be used to assist in the issuance of the City’s debt. The Financial Advisor will provide the City with objective advice and analysis on debt issuance. This includes, but is not limited to, monitoring market opportunities, structuring and pricing debt, and preparing official statements of disclosure.

Bond Counsel
The City Attorney’s Office will take the lead in selecting and contracting with the Bond Counsel and Disclosure Counsel. All debt issued by the City will include a written opinion by bond counsel affirming that the City is authorized to issue the proposed debt. The opinion shall include confirmation that the City has met all City and state constitutional and statutory requirements necessary for issuance, a determination of the proposed debt’s federal income tax status and any other components necessary for the proposed debt. Bond counsel is also responsible for preparing all financing documents including Trust Indentures and Bond resolutions and assists in preparation of Official Statements. Disclosure Counsel shall be required to deliver a customary 10(b)-5 opinion on City offering documents. The Disclosure Counsel will work with City staff to draft all disclosure documents for a bond financing. The City Attorney’s Office may engage separate firms in the capacity of Bond and Disclosure Counsel or one single firm to perform bond and disclosure counsel functions.

Underwriters
An Underwriter(s) will be used for all debt issued in a negotiated or private placement sale method. The Underwriter is responsible for purchasing negotiated or private placement debt and reselling the debt to investors.

Trustee/Fiscal Agent
A Fiscal Agent and/or Third Party Trustee will be used to provide accurate and timely payment to bondholders and securities processing. If there are unspent bond proceeds, funds will be held by the third party trustee. The Finance Department will monitor funds held by third party trustees and review trustee bank statements on a monthly basis to ensure any expenditures from the trustee accounts are in accordance with the intended use of the bonds.

Santa Monica City CouncilMay 24, 2023

Santa Monica City Council
May 24, 2023