Downtown Santa Monica, Inc. (DTSM) board members voted Tuesday to amend their fiscal year 2025–26 budget, reallocating funds to support parking structure maintenance and large-scale entertainment zone events while cutting costs for lighting and winter decorations.
The revised plan shifts $400,000 originally set aside for enhanced maintenance in zones one through three back into parking structure custodial services, after city officials clarified they would not be able to fully absorb those responsibilities. DTSM will also use $228,000 in carryover funds from the current fiscal year to help cover parking facility-related costs next year, bringing the total for parking structure maintenance to about $628,000.
“It represents a significant savings compared to what we spent last year and a step in the right direction as we transition services,” said Andrew Thomas, DTSM CEO. Last year’s parking structure maintenance totaled roughly $1.2 million.
The board also approved a reallocation of $150,000 from the Promenade micro-activations line item to a broader events and activations fund. That money will be used to produce larger celebrations tied to the recently approved Downtown Entertainment Zone, such as an Oktoberfest or St. Patrick’s Day festival.
Some smaller-scale activities, such as family-friendly zones and movie screenings, will continue under the remaining $100,000 allocated to micro-activations.
Lighting and decor line items were reduced based on updated vendor estimates and long-term equipment investments already made. Decorative lighting was cut from $100,000 to $50,000 and winter decor from $225,000 to $200,000. Staff emphasized that the visual appearance of the Promenade would remain consistent, as new lighting systems and programmable features installed this year will remain in place.
“We can do animations, we can do audio enhancements, we can do added colors [as well],” said DTSM staff member Jeremy Ferguson, adding, “so cutting the budget means that rather than adding new things or more things to the electrical system ... we can actually do more with the creative programming of the overhead canopy.” He also said that the palm and jacaranda trees will still receive lighting treatments using funds from the current fiscal year.
Despite overall board support, the vote followed several pointed objections from board member Lucian Tudor, who criticized what he called a lack of transparency and disregard for committee feedback. Tudor, who sits on both the finance and marketing committees, said changes contradicted previous directives to eliminate underperforming events and focus on consistent, small-scale engagement.
“I’m donating my time and I don’t feel that time is being respected,” he said. “We had clear direction and everything has switched.”
Staff and fellow board members acknowledged his concerns but pointed to new developments since the original March budget approval, particularly the city’s adoption of the entertainment zone ordinance and the partial handoff of parking maintenance duties.
Thomas emphasized that the revised budget reflects both a good-faith compromise with city departments and the board’s long-term priorities.
“It’s a real partnership,” added Deputy City Manager Susan Cline. “This is how we need to be working together to revitalize DTSM.”
The budget amendment passed unanimously, with a separate request to discuss new events in more detail at a future marketing committee meeting.