Santa Monica City Council
June 25, 2024

City Council – June 25, 2024
FY 2024-25 Budget Adoption
Tonight’s Actions
2 • Adopt FY 2024-25 Operating and Capital Improvement
Program (CIP) Budget & approve FY 2025-26 CIP Budget Plan • Adopt Resolutions
• Accept grant awards and renewals
• Direction on Cannabis tax rates
• Council allocation of Discretionary Funds
FY 2023-25
Operating Budget
The Biennial Budget
 Adopt Year 2: FY 2024-25
3 FY 2024-26
Capital Budget
 Adopt Year 1: FY 2024-25
• Approve Year 2: FY 2025-26
The Budget is the result of collaboration between the community, City Departments led by the City Manager’s Office, and the City Council June 2023
Public Hearing and
Adoption of the 1st
year of the Biennial
Budget and 2nd year
of the Biennial CIP
Budget
October 2023
Staff reports on
FY 2022-23 year-end
budget performance,
proposes
adjustments
February 2024
Staff reports on
midyear budget
performance,
updated forecast,
proposes
adjustments
May 28, 2024
Proposed FY 2024-25
Operating Budget and
FY 2024-26 biennial CIP
Budget presented to
City Council
June 25, 2024
Public Hearing and
Adoption of the 2nd
year of the Biennial
Budget and 1st year of
the Biennial CIP Budget
Santa Monica's Budget Process
March 2023
Council Priority
Setting for the FY
2023-25 Biennial
Budget
4 5
Reserve Levels & Safeguarding Fiscal Stability
Ongoing Strategies
• Continue to seek compensation from
excess insurance providers
• Sale of city-owned properties
• CIP Funding Deferral
• Suspend Housing Trust Fund payments
– suspend payment over two years,
excluding payments that cover
Preserving Our Diversity (POD)
Program and staffing costs
• Other initiatives – Existing partner
agreements and/or Bonds
General Fund Reserves
6 *Citywide expenditures are net of reimbursements and transfers between funds Proposed Budget Overview – FY 2024-25
$92.2
$13.4
$673.1
$449.9
$765.3
$463.3
$-
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
$800.0
$900.0
Citywide* General Fund
Operating
Capital
Citywide Expenditures (in millions) - $765.3 million*
• Total FTEs:
• 2,036.8 Permanent
• 85.0 As-needed
General Fund - $463.3 million
• Total FTEs:
• 1,280.3 Permanent
• 76.0 As-needed
Final Changes
• +$1.8 million
o $424,920 Operating - General Fund
o $370,000 Capital - General Fund
o $957,850 Operating - Other Funds
7 • Waive Outdoor Dining Fee on
the Promenade for 1 year and
reduce rate
Invest in
Economic Recovery
• Add 4 Police Officers
• CCTV Security Camera
Program
• Quick Build Enhancements at
Unsignalized Intersections
Invest in
Public Safety
Final Changes - General Fund
8 Annual lease revenue for new
agreement with Pacific Park
~ $195,000 Revenue Increase
Pier Fund
Housing Authority Fund
• Continuum of Care Program
~ $908,000
Misc. Grants Fund
• STEP Court Program
$50,000
Grants
Final Changes - Other Funds
Cannabis Business Tax Rate
9 Current Status
• Santa Monica business tax rate set at 2% for medicinal sales and 3% for adult-use sales • Average regional rate is 6.3%
Items for consideration
• Wait until cannabis program is more formed
• Collect a full year of tax revenue data before making changes • Complete analysis to determine the appropriate rate for the Santa Monica market Need Council direction on rate changes
Council Discretionary Funds
10 Council Discretionary Funds Available as of July 1, 2024: $127,653 Typical Annual Allocations 3-Year Average
4th of July Parade $ 15,000
Business Improvement Districts $ 29,000
Pico Youth and Family Center Car Show $ 6,000
Santa Monica High School Latina/o Graduation $ 6,000
Westside Coalition for Martin Luther King Jr. Celebration $ 9,000 Total Annual Average $65,000
Potential Additional Annual Allocations Previous Amount Memorial Day (funded once previously) $ 5,000
Santa Monica Pride (funded two years previously) $ 10,000 Santa Monica High School Grad Nite (funded three years previously) between $ 10k -$20k 1 through 3 – City Council, Housing Authority & Parking Authority • Adopt the FY 2024-25 Operating Budget, adopt the first year and approve the second year of the FY 2024-25 Biennial Capital Improvement Program (CIP) Budget 4 through 11 – City Council Adopt Resolutions
• Fees, fines, and parking rates
• Gann Appropriations limit
• Approve allocation of SB-1 Gas Tax funding
• Salary Rates and Approve Position and Classification Changes • Confidential Unrepresented Employee (CUE) Pay Plan
12 – Provide Direction on Cannabis rates adjustments and Adopt Resolution, if rates are adjusted
13 & 14 – City Council Accept grant awards and renewals 15 & 16 – City Council Adopt CEQA finding 11
Recommended Actions (5 motions)