The Santa Monica City Council unanimously approved a comprehensive realignment plan Tuesday aimed at restoring public safety, revitalizing the downtown core and achieving fiscal stability by 2028, marking what officials called a pivotal moment for the coastal city's recovery from years of pandemic-era decline.
The multi-year framework responds to mounting challenges including rising homelessness, deteriorating public spaces, declining tourism revenues and a projected $29.6 million structural deficit by fiscal year 2026-27. The plan will deploy $60 million in previously allocated reserves to fund immediate investments in public safety, capital improvements and organizational capacity while pursuing new revenue streams to balance the city's operating budget.
"This plan is about getting Santa Monica back on its feet – safe streets, vibrant neighborhoods, and a city organization strong enough to deliver," Mayor Lana Negrete said. "Realignment is our roadmap to a safer, cleaner, fiscally stable, and more hopeful future."
City Manager Oliver Chi framed the initiative as essential for the city's survival after years of compounding crises that eroded Santa Monica's once-strong financial foundation.
"Realignment is about getting Santa Monica back on its feet," Chi said. "We're investing in public safety, cleaning up our streets, and rebuilding the financial and organizational strength that make great cities endure. This plan is a promise – that Santa Monica's best days are ahead."
The city's fiscal position has deteriorated dramatically since 2018, when reserves stood at $435.8 million. Today, non-restricted reserves total just $158 million, with only $98 million unobligated. The decline stems largely from $230 million in childhood sexual-abuse settlements, compounded by pandemic impacts and declining revenues. Sales tax revenue dropped 6% and transient occupancy tax fell 10% in fiscal year 2024-25.
Council members expressed strong support for the comprehensive approach.
"I think that this agenda is our blueprint to make Santa Monica safe, clean and vibrant again and to hold ourselves accountable to delivering real results for the community," Councilmember Caroline Torosis said.
Councilmember Ellis Raskin praised the plan's scope, saying it "really feels like the embodiment of that vision and I really am so thankful for the work that our staff team has put in to make this possible. I'm really excited for the future."
The plan organizes initiatives around five strategic priorities: achieving safe neighborhoods and clean streets, activating economic opportunity and growth, developing affordable housing, creating organizational capacity, and building organizational health.
Public safety reforms concentrate resources downtown, where 36% of crime calls and 50% of homeless-related calls originate. A new Downtown Police Substation at Santa Monica Place will house an expanded 8-10 officer Downtown Services Unit, supplemented by five patrol officers and two homeless outreach officers daily. Eight new Public Safety Officers will patrol the Promenade, parks and parking structures.
With 43 officers eligible for retirement, the city will authorize 10 officer overhires to maintain staffing during the 12-18 month training period. The plan also calls for partnering with Metro on train platform enforcement, relocating the SamoShel homeless shelter from downtown to a new "healing center" model integrating addiction treatment and mental health services, and expanding prosecutorial capacity to handle approximately 90% of fileable cases.
"I really appreciate that this moves us to a more proactive way of addressing our city's issues rather than the reactive way that we have been doing it," Councilmember Natalya Zernitskaya said.
Physical improvements include a $3.5 million downtown capital program targeting infrastructure renewal, with most work completed by early 2026. Projects include comprehensive tree pruning, planting 37 new trees, refreshing 403 tree wells, repairing 20,000 square feet of sidewalks, replacing 125 trash cans, and modernizing crosswalks and signage. An additional $500,000 will fund corridor improvements in partnership with business improvement districts on Montana Avenue, Main Street, Pico Boulevard and Ocean Park Boulevard.
Economic development strategies focus on large-format activations, including monthly events on the Promenade and developing a major Santa Monica Music Festival in 2026 in partnership with Goldenvoice. The plan calls for exploring expansion of the Downtown Entertainment Zone to other business districts and the pier.
Councilmember Jesse Zwick noted staff had listened to council and community ideas "and for weaving it into a plan that is exciting and audacious but also grounded in its ambition." He affirmed he would vote for the plan.
Permitting reforms aim to streamline development processes, with commitments to one-week turnaround for ADU conversions, two weeks for restaurant tenant improvements, and five weeks for new mixed-use construction. The city will pilot artificial intelligence-based plan checks for single-family homes and ADUs.
To incentivize restaurant expansion, the plan waives $1,400-per-seat city wastewater capacity fees and reduces outdoor dining license fees to $1 per square foot for sidewalk dining and $2 for parklets. Branch libraries will reopen for three-day-per-week service starting January 2026, expanding to four days in July 2026.
Councilmember Barry Snell emphasized the economic focus, saying the plan "is the first time that I've seen a plan that could actually work, could actually bring our economic vitality back to our downtown." He highlighted the fiscal goal of "putting ourselves in a positive financial position in two and a half years which is incredible."
Housing initiatives include new vacant property and rent registry ordinances tracking approximately 170 vacant properties and 15,000 non-rent-controlled units. The city will prioritize housing development downtown while studying policies to ensure boulevard development remains compatible with residential neighborhoods.
Revenue strategies include parking adjustments generating $9 million annually starting January 2026, ambulance operations producing $7 million beginning February 2026, digital signage concessions adding $4.5 million, and credit card convenience fees contributing $1 million. Staff continues assessing a potential 2026 parcel tax generating $12 million annually to backfill the expiring Joint Use Agreement with Santa Monica-Malibu Unified School District.
The plan projects modest deficits in fiscal years 2025-26 and 2026-27 before achieving a $3.4 million surplus by fiscal year 2027-28. Strategic development of four downtown properties – including the Kiss-and-Ride Lot, Parking Structure 1, Old Fire Station 1, and the 4th/5th/Arizona site – could generate $100-200 million to rebuild reserves to $200-300 million by 2028.
Public reception to the plan has been mixed. Supporters have backed the plan for its scope, reach and necessity. Opponents have focused on the lack of public input and inability to provide comments before adoption.
Councilmember Dan Hall acknowledged the stakes involved.
"I'll close for now just by simply acknowledging this plan is a big bet on our community, on our capacity as a staff, on our shared belief that Santa Monica's best days are ahead of us and not behind us," Hall said.
Mayor Negrete emphasized the plan's focus on accountability and results.
"I am proud of this realignment plan because it reflects what I fought for and many have fought for from the beginning – transparency, accountability, safety and results," Negrete said. "And so if it took rebranding to finally get it done I'll take it as long as it serves the people that we serve."