Santa Monica City Council Adopts FY 17-18 Budget
June 28, 2017 6:15 PM
SANTA MONICA, CA – At last night’s meeting on June 27, 2017, the Santa Monica City Council approved the first year of the 2017-19 biennial budget. The overall approved budget is $774.9 million in FY 2017-18 and $802.8 million in FY 2018-19. The general fund covers more than half the citywide budget at $504.4 million in FY 17-18 and $530.5 million in FY 18-19.
With this budget, the City is allocating resources as efficiently and effectively as possible to avoid deficits in the future caused primarily by increases in pension and healthcare costs. The City paid down 11% of its unfunded pension liability in June, lowering its fixed annual costs by approximately $4 million, and the Adopted Budget reflects further steps to control operating cost increases, including the long-term reduction in staff with no net new positions in the first year and a reduction of overall permanent positions in the second.
“This was a smooth budget adoption process. Council and staff were in sync on finding as many efficiencies as possible, including reducing staffing over the long term and elevating priorities such as enhancing pedestrian safety and assuring our social services are protected from possible cuts in Federal funding,” said Mayor Ted Winterer.
After a budget study session in May, Council directed staff to allocate more resources to the following:
- Vision Zero: An initiative to eliminate traffic fatalities with an allocated $500,000 to be spent over two years on physical improvements complementing existing education and enforcement efforts. An existing position will be restructured to coordinate this work.
- Homeless Street Team: A pilot multi-disciplinary street team program assisting the homeless will be extended through FY 18-19. For the first year, the County will match the City’s $300,000 annual contribution.
“We are living within our means to ensure long-term fiscal sustainability and the City’s AAA credit rating,” said City Manager Rick Cole. “This budget marks a transition. City Council is focused on maintaining our quality of life services in the face of the rising costs of long-term pension obligations. So, over the next two years we will begin to reduce the City’s overall workforce by emphasizing efficiencies and using technology to do work faster, better and less expensively. The adopted budget continues to invest in vital community assets and rigorously focus on delivering the results that matter most to the wellbeing of our residents.”
As part of budget approval, Council approved the following:
- A master fee, fine and parking rate resolutions based on a citywide fee study that looked at 635 fees across the City, helping ensure that the City recovers costs for services appropriately and adequately and also includes new fees related to the City’s water neutrality ordinance.
- Expenditure and position changes made to the proposed FY 2017-19 budget presented in May (see attachments H and I under item 9.A).
- Increased funding for our human services and arts programs by 2.2%. A $173,500 enhancement had already been included in the Proposed Budget to increase funding for childcare for low- to moderate-income Santa Monica families.
Additionally, Council accepted federal Housing and Urban Development renewal grant funds that support our homeless services in the amounts of $2,786,792 and $478,782.
More Information
Budget webpage >
June 27, 2017 staff report >
Citywide Fee Study summary >
About the new budget framework >
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More Information
https://newsroom.smgov.net/2017/05/17/santa-monica-releases-proposed-biennial-budget-with-a-new-framework-and-a-focus-on-efficiency
https://finance.smgov.net/budgets-reports
http://santamonicacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1096