Council Discretionary Funds Reforms
October 14, 2025
Item 11-B
October 14, 2025
Item 11-B
October 14, 2025
• The City Council has historically maintained a modest discretionary fund that has been used to support local events and activities • For the current fiscal year, that discretionary fund contains $137,398 • Over time, the Council discretionary fund has increasingly been used to fund regular, ongoing, and recurring events • This has eroded the discretionary nature of the fund and limited Council flexibility • Concurrent to this review, the City has also developed a new Signature Events Policy to provide fee waiver support for ongoing non-profit driven signature events in Santa Monica • The discretionary fund had been used to provide subsidy offsets for many of the events contemplated under the Signature Events Policy • Given those factors, staff has engaged an assessment to identify ways in which we can streamline and provide flexibility for the Council regarding discretionary funding activities 2 Background
Item 11-B
October 14, 2025
Item 11-B
October 14, 2025
• Based on staff review, during the past 5-years, the City has consistently funded around $83K / year worth of
commitments out of the Council discretionary fund
• Key Ongoing Commitments
• Business Improvements Districts $29,000
• 4
th of July Parade $15,000
• MLK, Jr Celebration $9,000
• Santa Monica Pride $10,000
• SaMoHi Grad Night $20,000
TOTAL $83,000
3 Current Ongoing Commitments
Item 11-B
October 14, 2025
Item 11-B
October 14, 2025
1. Transition ongoing events / support to City operating budget • Restores $83,000 of available funding
• Ensures ongoing City support for existing activities
2. In conjunction with the Signature Events Resolution, coupled with a minor adjustment, the Council discretionary fund could then be set at $140,000 / year • That $140K / year would then constitute a true discretionary fund for the City Council annually
• To allocate the funding, staff is suggesting that an equal amount ($20K) be prioritized for each Councilmember • Councilmembers would be able to combine their funds for greater flexibility • Of note, any expenditures proposed out of the discretionary fund would still need to be approved by the full Council
4 Recommendations
Item 11-B
October 14, 2025
Item 11-B
October 14, 2025