The Santa Monica City Council will consider adopting a nearly $909 million operating budget for fiscal year 2026-27 at its upcoming meeting, finalizing a spending plan that city officials say positions the city for a historic stretch of major international events while sustaining core service levels.
The budget, totaling $908.8 million net of reimbursements and transfers, was prepared by Finance Director Oscar Santiago and forwarded to the council by City Manager Oliver Chi. It covers all city funds and includes 2,287.6 full-time equivalent positions — 2,175.3 permanent and 112.3 temporary.
The FY 2026-27 spending plan represents the second year of the city's biennial budget cycle, updated to reflect the Realignment Plan and operational adjustments made in March 2026. The General Fund portion of the operating budget totals $525.2 million in expenditures, supported by $509.5 million in General Fund revenues.
Council reviewed the proposed budget at a May 26 study session and directed staff to return with final adoption documents, expressing broad support for the plan as presented.
Three changes to the Capital Improvement Program have been incorporated since that session. The Santa Monica Neighborhood Greenways Project, supported by a Southern California Association of Governments Sustainable Communities Program grant, has been accelerated from FY 2027-28 into the current fiscal year. The 4th Street Transit Priority Improvements have also been moved up to enhance bus operations ahead of the 2028 Olympic Games. A third adjustment reduces funding for an Affordable Housing and Sustainable Communities-supported project in FY 2027-28 to reflect updated scheduling.
Staff describe the budget as positioning the city to deliver priority capital projects and prepare for the FIFA World Cup later this year, the 2027 Super Bowl and the LA28 Olympic and Paralympic Games.
Beyond the core budget, council will be asked to adopt a series of implementing resolutions, including updates to the city's Master Fee and Fine Schedules, parking rates, salary classifications and the annual Gann Appropriations Limit. The proposed Gann Limit for FY 2026-27 is set at approximately $3.56 billion — well above the city's projected $357 million in qualifying appropriations, leaving the city roughly $3.2 billion below the statutory ceiling.
On fines, staff are recommending increases to three existing Code Enforcement penalties — for construction work without a permit, work with an expired permit, and noncompliance with an approved construction management plan — each rising to $1,000. A new $500 fine would be established for violations of tenant protection regulations during construction.
The city's aquatics fee schedule, which drew public comment at the May study session over proposed increases, was defended by staff, who said the 8-9% adjustments bring Santa Monica's lane rental rates in line with other Recreation and Arts Department fees while remaining below comparable rates in Long Beach, Torrance and El Segundo.
The budget meeting is scheduled for June 23 at City Hall, 1685 Main Street.