City Council Adopts Balanced FY 2022-23 Budget, Invests in Community Priorities

June 29, 2022 4:55 PM

Last night, the Santa Monica City Council adopted a balanced budget for FY 2022–23 aligned with its adopted priorities of a clean and safe community, addressing homelessness, and an equitable and inclusive economic recovery. Last week, Moody’s and Fitch Ratings completed their review of the City’s financial health and have maintained the City’s General Obligation and Lease Revenue Bond ratings, affirming the City’s strong (AAA/Aaa) credit rating.

“The City is in the same quandary as our country. We are experiencing significant cost increases resulting from high inflation, market disruptions from the war in Ukraine, and supply chain issues due to the COVID-19 pandemic,” said Mayor Sue Himmelrich. “While some economic uncertainty remains, I am confident that the Fiscal Year 2022-23 Budget responds to what Santa Monicans need and reinforces our commitment to economic recovery.”

The adopted FY 2022-23 Budget comes as the City gradually recovers after a General Fund revenue loss of over $180 million over three years due to the impacts of the COVID-19 pandemic. The FY 2022-23 Budget allocates resources responsive to Council direction and community feedback and consists of no-cost operational adjustments to improve service delivery for the community.

In addition to programs and services funded in FY 2021-22, the FY 2022-23 Adopted Budget includes:

These restorations are supported by one-time funds and will require additional revenue streams in the future.

To expedite economic recovery, enhance public safety presence and address homelessness, the City must seek a combination of new ongoing and one-time revenues. At last night’s meeting, Council adopted a resolution to place a Transient Occupancy Tax (TOT) measure on the November 8, 2022 General Election ballot.

Downtown Santa Monica and Pier Investments
As part of the approved FY 2022-23 Budget, the Santa Monica City Council funded ongoing Downtown investments to enhance the resident, visitor and business experience.

Investments include:

FY 2022-24 Biennial Capital Improvement Program Projects:

Council also endorsed the FY 2022-24 Biennial CIP Projects including:

The total adopted budget for the City for FY 2022-23 is $665.4 million. This is a difference of approximately $633,000 over what was presented in the initial proposed budget on May 24. Of this amount, approximately $564,000 is in the General Fund and $69,000 is in the Miscellaneous Grants Fund. The final approved budget is available at finance.smgov.net/budgets-reports/annual.

The FY 2022-23 operating budget is the second year of a two-year biennial budget. As a result, the budget presented to Council shows only changes to the second year of FY 2021-23 Biennial Budget that was approved by Council in June 2021. For additional information on the overall budget, including line-item allocations, the community is invited to review the FY 2021-23 Biennial Budget documents published in 2021.

Media Contact

Miranda Iglesias
Public Information Coordinator
Miranda.Iglesias@SMGOV.NET

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