City Council – June 24, 2025
FY 2025-27 Budget Adoption
Recommended Action
1. Adopt a Resolution to adopt the first year and approve the second year of the FY 2025-27 Operating Budget and adopt the approved FY 2025-26 Biennial Capital Improvement Program Budget
2 Revenues Expenditures Staffing
FY 2025-26:
$30,736,186
FY 2025-26: $31,378,075
Operating: $31,332,986
Capital: $45,089
FY 2025-26:
15.0 Permanent FTE
FY 2026-27:
$30,929,312
FY 2026-27: $31,416,882
Operating: $31,361,514
Capital: $55,368
FY 2026-27:
15.0 Permanent FTE
Housing Authority Board
• Adopt FY 2025-26 Operating and CIP Budget and Approve FY 2026-27 Operating Budget Plan
• Adopt annual Resolutions
• Approve allocation of SB-1 Gas Tax Funding
• Accept FY 2025-26 Measure A Local Solutions Funds
• Authorize amendment to the City’s Fiscal Policies
• Provide direction on the allocation of Council Discretionary Funds 3 Tonight’s Council Actions
May 27, 2025
Proposed FY 2025-27 Biennial
Operating Budget and second
year of the Biennial CIP Budget
Fall 2025
Staff reports on FY 2024-25
year-end budget performance
May 2026
Proposed FY 2026-27
Operating Budget and FY
2026-28 Biennial CIP Budget
presented to City Council
January-February 2025
Community Engagement for the
FY 2025-27 Biennial Operating
Budget and priorities
March 8, 2025
Council Priority setting for the
FY 2025-27 Biennial
Operating Budget and staff
reports on FY 2024-25
midyear budget
performance and updated
forecast
June 24, 2025
Public Hearing and adoption
of the firstyear of the Biennial
Operating Budget and
second year of the Biennial
CIP Budget
Winter 2026
Staff reports on midyear
budget performance,
updated forecast, proposes
adjustments
June 2026
Public Hearing and
Adoption of the 2nd
year of the Biennial
Operating Budget
and 1st year of the
Biennial CIP Budget
Fiscal Year 2025-27 Budget Process
4 Net of reimbursements and transfers between funds 5
Capital
$93.8
Capital
$120.9
Operating
$699.4
Operating
$708.8
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
FY 2025-26 FY 2026-27
Citywide Expenditures (in millions)
BUDGET OVERVIEW:
FY 2025-27 Proposed Budget (with Final Changes)
FY 2025-26 Proposed Budget
• $793.3 million all funds
• 2,149.3 FTE
General Fund - $483.4 million,
including reimbursements and
transfers
FY 2026-27 Budget Plan
• $829.7 million all funds
• 2,146.8 FTE
General Fund - $499.4 million ,
including reimbursements and
transfers
Total $793.3 Total $829.7
Motion supporting the proposed budget with amendments for:
• Use of Measure K funds
• Implementation of a hiring freeze of non-sworn personnel in the General, Beach and Pier funds
• Expansion of parking meters and increase of residential preferential parking permit rates
• Expand use of the License Plate Recognition in City Parking Facilities • Initiation of repayment to the Housing Trust Fund
• Funding to the Early Childhood Task Force
6 Incorporating Council Direction
MEASURE K:
Public Safety
7 Police & Fire Resources
• Expand Drone as a First Responder
Program (DFR) – equipment funds
• Downtown Community Services
Officers
• Proactive Security Monitoring
solution at Library, Miles Playhouse
and Camera Obscura
• Ambulance Operator Program Pilot
• Advanced Provider Unit
Behavioral Health
• Ongoing funding for the Therapeutic
Transport Team (TTT) in FY 2027-28
Infrastructure Improvements
• Ongoing funding for copper wire
replacement & streetlight
maintenance
Preserve Funding
• Police Special Deployments overtime
MEASURE K:
Safety for All Modes of Movement
8 Infrastructure Improvements
• Neighborhood traffic calming &
transformational projects along
major corridors
• Traffic and mobility staff to advance
these projects
• Local grant match funding for
ongoing and future projects
• Automated Bike Lane Enforcement
Program
Promote Public Safety
• “No right on red” restrictions at scramble
crosswalks in the Downtown district
Community Outreach
• Resume ”Safe Routes to School” and “Safe
Routes for Seniors” programming
Preserve Funding
• Essential staffing
Complete
Questionnaire Finance/HR Review
City Manager
Decision
Report to City
Council on status of
hiring on quarterly
basis
Criteria for approval:
• Health and safety
• The implementation of Measure K
proposals
• Implementation of net-zero proposals
included in the budget
• Compliance with legal requirements
• Sustain core city services – what we
have to do
• Revenue generating initiatives
Hiring Freeze and Managed Hiring Process
10 Expenditures Revenues
• General Fund - $1.2 million over two years to expand
the LPR system- New CIP Appropriation
• General Fund - Initiate reimbursement of the Housing
Trust Fund - New Annual Appropriation ($339 thousand
annually for four years)
• General Fund - $25,000 annually to the Early
Childhood Task Force - New Annual Appropriation
• CDBG Fund - Adjustments in two capital projects to
better align with project timelines
o $0.24 million decrease
• Misc. Grants Fund - Measure A Local Solutions Funds
allocation to replace Measure H funds
o $0.85 million increase
• General Fund - $0.63 million increase in the General
Fund for revenues associated with the LPR system
and passthrough of credit card processing fees
• General Fund - $1.03 million increase in the General
Fund for revenues associated with the increase to
Residential and Visitor Parking Permits
• Misc Grants and CDBG Fund - FY 2025-26 HUD
allocations & proposed activities.
o $7,115 increase in the Misc. Grants Fund and
$36,893 decrease in CDBG
• Misc. Grants Fund - Measure A Local Solutions Funds
allocation to replace Measure H funds
o $0.85 million increase
FINAL CHANGES:
Technical Adjustments, New Allocations, & Corrections
11 Adjusted New
• Parking Fees: Increase in preferential
parking fees to enhance cost recovery as
directed by City Council at the May 27,
2025 meeting
• Adjustments to the violation rate of
Standard Fines and Repeat Violations
• Convenience fees for parking
transactions as directed by City Council
at the March 8, 2025 workshop
• Six proposed fines added to the Fine
Schedule to deter violations and
noncompliance
City Fees and Fines Changes
Need
Approval
• Update amount owed to the
Housing Trust Fund to $47.2 million,
includes FY 2023-25 deferrals
• Add $0.34 million annual payment
to the Housing Trust Fund over four
years beginning in FY 2025-26
OTHER BUSINESS:
Fiscal Policy Changes
OTHER BUSINESS:
Council Discretionary Funds
13 Council Discretionary Funds Available as of July 1, 2025: $137,398 Typical Annual Allocations 3-Year Average
4th of July Parade $ 15,000
Business Improvement Districts $ 34,000
Pico Youth and Family Center Car Show $ 6,000
Santa Monica Arts Parents Association $ 16,667
Santa Monica High School Grad Nite $ 16,667
Santa Monica High School Latina/o Graduation $ 6,000
Westside Coalition for Martin Luther King Jr. Celebration $ 9,333 Total Annual Average $102,000
Other Items Funded in recent years (funded twice in last 3 years) Previous Amount Memorial Day $ 5,000
Santa Monica Pride $ 10,000
Santa Monica Animal Shelter between $1k -$10k
Santa Monica High School Wrestling Program $ 5,000
Adopt Resolutions to:
14 Recommended Actions
2. & 3. Adopt the first year and approve the second year of the FY 2025-27 Biennial Budget and Adopt the second year of the FY 2024-26 Biennial Capital Improvement Program (CIP) Budget – Council & Parking Authority
4. Establish new classifications, adopt salary rates, and approve position and classification changes
5. & 6. Revise the master fee schedule and master fine schedule
7. Establish parking rates and permit fees for all City parking facilities
8. Revise the convenience fees
9. Establish Gann appropriations limit
10. Incorporate a project funded by SB 1: The Road Repair & Accountability Act
11. Confirm Council’s travel budget allocation
Authorize:
12. City Manager to accept FY 2025-26 Measure A Local Solutions Funds from the County of Los Angeles Homeless Initiative
14. Amending the City’s Fiscal Policies to revise the plan to replenish Housing Trust Fund funds borrowed by the General Fund
Adopt:
15. Finding of no significant effect and categorical exemption pursuant to CEQA Guidelines Provide Direction on:
13. Discretionary fund allocations