SR 02-27-2024 11B
City Council
Housing Authority
Report
City Council Meeting: February 27, 2024
Agenda Item: 11.B
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To: Housing Authority, Mayor and City Council
From: Oscar Santiago, Director, Finance Department, Budget
Subject: Financial Status Update and FY 2023-24 Midyear Budget
Recommended Action
Staff recommends that the City Council and Housing Authority:
1. Appropriate FY 2023-24 midyear revenue and expenditure budget adjustments
and approve corresponding adjustments to the FY 2024-25 budget plan.
(Attachment A)
Staff also recommends that the City Council:
1. Receive an update to the FY 2023-24 through FY 2027-28 Five Year Financial
Forecast;
2. Adopt a Resolution establishing new classifications and adopting salary rates for
various positions (Attachment B);
3. Approve the position and classification changes (Attachment C);
4. Adopt a Resolution abolishing unused and obsolete classifications and
associated salary rates (Attachment D);
5. Authorize the City Manager to accept a grant award in the amount of $200,000
from the California Department of Aging’s Local Aging & Disability Action
Planning (LADAP) Grant Program in support of strategic planning efforts to
address the needs of older adults and people with disabilities, and to execute all
necessary documents to accept the grant and all grant renewals;
6. Authorize the City Manager to accept a grant award in the amount of $135,000
from the U.S. Department of Homeland Security, Federal Emergency
Management Agency (FEMA) Hazard Mitigation Grant Program (HMGP) through
the State of California, Governor’s Office of Emergency Services (CalOES) for
the Office of Emergency Management in the City Manager’s Office, and to accept
all grant renewals; and
7. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines.
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Summary
The Midyear Budget Review is an important touchstone in the City’s monitoring of its
economic recovery and is an opportunity to assess whether adopted budget projections
are on track. The midyear outlook is positive, reflecting an economy that continues to
recover. The current investments in our community, approved during the FY 2023-25
budget, have positioned us to maintain our progress towards addressing community
needs, and revenues are projected to marginally exceed previously budgeted amounts.
However, the City continues to navigate various challenges, ranging from economic
uncertainty resulting from inflation and high interest rates, volatility of the insurance
market and increased medical costs, consumer and work behavior changes, the need to
address deferred infrastructure and equipment maintenance, and contingent liabilities
from additional claims stemming from allegations of sexual abuse by a former employee
and volunteer and over a request to transition to district elections. Therefore, while there
are positive signals in the City’s revenue streams, the combined impact of these
challenges limits the City’s ability to bring forward enhancements to programs and
services beyond what was approved in the FY 2023-25 budget adopted last June.
The February 2024 Five Year Forecast for all City funds includes the updated revenue
and expenditure budget adjustments proposed in this report as FY 2023-25 Midyear
adjustments, as well as updated revenue and expenditure projections going forward. In
keeping with the momentum of the recovery, the General Fund Forecast shows a
balanced budget on an annual basis for the current and next five fiscal years. This is
made possible through the use of working capital reserves that supplement revenue
growth in the short term. The majority of the non-General Funds will remain self-
sufficient during the forecast period.
The Midyear Budget Review provides an opportunity to adjust the current budget based
on eight months of actual data. Budget adjustments are important, as they inform future
year projections and assist staff in updating the five-year financial forecast and the
budget targets for the FY 2024-25 budget plan. The revenue and expenditure
adjustments are further detailed below. A complete list of all adjustments are included
in Attachment A.
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Proposed budget adjustments for Fiscal Year 2023-25:
Revenues (in millions)
Fund FY 2023-24 FY 2024-25
General Fund $ 1.18 $ 6.40
Other Funds $ (0.16) $ (2.41)
Total All Funds $ 1.02 $ 3.99
Expenditures (in millions)
FY 2023-24 FY 2024-25
Fund Operating Capital Operating Capital
General Fund $ 0.00 $ - $ 4.45 $ -
Other Funds $ (0.21) $ 8.64 $ 3.14 $ 1.21
Total All Funds $ (0.21) $ 8.64 $ 7.59 $ 1.21
All proposed staffing adjustments, including additions and deletions of positions with net
zero cost impact and those funded by the reallocation of funds within departments’
current budgets are detailed in Attachment C. The report also includes
recommendations to adopt resolutions to establish new classifications and salary rates
for various positions and to abolish unused and obsolete classifications and associated
salary rates; and to approve the acceptance of grant awards from the California
Department of Aging to support strategic planning to address the needs of older adults
and people with disabilities and from the U.S. Department of Homeland Security FEMA
to support the preparation of the City’s Local Hazardous Mitigation Plan.
Background
On June 27, 2023, the City Council adopted the FY 2023-25 Biennial Budget
(Attachment E). The operating budget provides a plan, built upon community-driven
priorities, to continue to rebuild, restore and reenergize our community through strategic
investments informed by the five priority areas Council identified at its workshop on
March 11, 2023. The investments were funded using new revenue sources coming
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from voter approved measures, public and private partnerships, rate adjustments,
reallocated funding, working capital reserve funds, and successful grant applications.
The FY 2023-24 Adopted Capital Improvement Program (CIP) Budget is focused on
strategic investments in maintaining and enhancing critical City infrastructure and City
facilities essential to providing services.
The City’s audited financial statements as of June 30, 2023, published in the Annual
Comprehensive Financial Report and posted on the City’s website in early February
2024, confirm that the City’s General Fund realized sufficient revenues in FY 2022-23 to
1) maintain its working capital reserve funds, which will help maintain service levels in
the short term while revenues continue to recover and 2) enable us to increase the
General Fund operating contingency reserve, which protects our ability to provide
essential services during emergencies and economic fluctuations, by another 0.5% to
$52 million. While this is a positive milestone towards rebuilding General Fund reserves,
it is important to note that the City’s General Fund reserve level is still significantly lower
than it was in pre-COVID years.
As of June 30, 2023, General Fund total non-restricted reserves amount to
approximately 50% of what they were as of June 30, 2019. Since 2020, demands on
reserves have been impacted by a severe loss of revenues as a result of the pandemic
(estimated at $170 million through June 30, 2023), and legal settlement payments
related to allegations of sexual abuse by a former employee and volunteer. Of the total
$229.8 million paid in legal settlements, $159.6 million was covered using General Fund
reserves, while the remainder was covered by insurance funds and reserves from the
City’s Housing Trust Fund, Water Fund and Workers Compensation Fund. Drawing on
reserves and borrowing from other funds has limited the City’s ability to bring forward
programs, services and capital projects that meet current council priorities and
community and organizational needs.
Discussion
The national and State economies continued to recover in the fourth quarter of
(calendar year) 2023. National economic growth as measured by Gross Domestic
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Product (GDP) grew over 4.8% and 3.3% in the third and fourth quarters of 2023,
respectively. The deceleration in GDP in the fourth quarter was primarily due to
slowdowns in federal government spending, residential investment, and consumer
spending. Economists project that growth in the U.S. economy in 2024 and 2025 will be
tempered (less than 2% annual GDP growth) as interest rates remain high and inflation
rates slowly recede. It is projected that interest rates will remain relatively unchanged
until mid to late 2024 when the Fed is expected to begin cutting. In December 2023, the
UCLA Anderson Forecast indicated that the threat of eminent recession has faded,
fueled by continued strength in the labor market; expansionary government policies;
new national policy to encourage infrastructure, green energy and computer chip
development in the U.S., which has pumped billions into the economy; and consumer
spending, which remains strong. However, some economists still believe a recession
could happen.
Santa Monica’s economy continues to show recovery in consumer spending and the
tourism sector. Property values in the City remain the third highest in Los Angeles
County. As interest rates moderate or are reduced, it is projected there will be an
increase in home sales and that prices, which are leveling off or declining, will rebound
– thereby increasing assessed property values. This will have a positive impact on the
City’s property tax and real estate transfer tax revenues.
General Fund Five-Year Financial Forecast Update
The February 2024 General Fund Five-Year Financial Forecast incorporates the
revenues and expenditures budgeted for FY 2023-25, as revised with midyear budget
adjustments. The Five-Year Financial Forecast shows the balance of General Fund
revenues less expenditures on an annual basis for the next five fiscal years. The
Forecast assumptions and results were updated from those presented in the March 11,
2023 Council Workshop (Attachment F).
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Notes: *includes the use of one-time working capital. Chart reflects Master Facilities
Use agreement with SMMUSD expiring June 30, 2027. Forecast assumes that
Measure YY/GS agreement with SMMUSD, which expires on June 30, 2028 is
renewed. See discussion below.
As shown in the chart above, with the help of working capital reserves, the General
Fund maintains a balanced budget until FY 2027-28 when revenues are anticipated to
exceed expenditures.
Revenue Projections: The revenue forecast is informed by actual revenues generated
in the first half of the year and updated assumptions based on economic trends and
projections by hospitality industry, sales tax and property tax experts. These factors
inform the midyear changes that are included in the forecast. On the revenue side, staff
proposes adjustments to increase General Fund revenues by approximately $1.2 million
and $6.4 million in FY 2023-24 and FY 2024-25, respectively, as compared to the
original budget. While the FY 2024-25 change is a significant increase, it is primarily
due to continued recovery in the tourism sector, which is impacting Transient
Occupancy Tax revenues, and to increases in Business License Tax revenue from
greater than projected gross receipts reported by businesses in FY 2023-24 and
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focused compliance efforts resulting from a dedicated business license inspector
position. The additional midyear revenue allows the City to continue to have a balanced
budget using essentially the same level of working capital reserves ($27.6 million), as in
the 2023 forecast, to fill the gap between revenues and expenditures, while addressing
midyear expenditure changes, cost increases throughout the forecast for items such as
pension rates informed by recent portfolio earnings trends, healthcare rate increases
due to inflation at an annual rate of 10%, significant increases to contributions towards
property insurance and general liability/auto self-insurance, ongoing funding for the
Police Department crime data center, and funding to implement and pay for the ongoing
costs of a new permitting system.
Staff projects that growth across all General Fund revenue streams will moderate to an
average 3.7% for the remainder of the forecast. It is anticipated that General Fund
revenues will not recover to the level projected prior to the pandemic until FY 2026-27.
While the City has already experienced a loss of nearly $170 million since 2020,
revenues will lag behind pre-pandemic projected growth by nearly $34 million more over
the next five years, for a total revenue loss of approximately $204 million over 7 years,
as shown in the chart below.
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Expenditure Projections: The Forecast has been updated to include projected cost of
living increases; pension rates informed by recent portfolio earnings trends; healthcare
rate increases due to inflation at an annual rate of 10%; significant increases to
contributions towards property insurance and general liability/auto self insurance, based
on an independent actuarial analysis of the fund, to ensure sufficient resources are
available to cover claim expenses and increased excess insurance premiums; ongoing
funding to cover the costs of the Police Department real time crime center once grant
funding is exhausted; and funding to implement and pay for the ongoing costs of a new
permitting system. Additionally, the General Fund forecast includes payments starting
in FY 2027-28, to the Information Technology and Vehicle Management Funds to pay
deferred internal service contributions that were suspended during the pandemic. These
funds had to defer replacement schedules as a result of two years of suspended
contributions. As a result of having to address these expenditure increases, the
General Fund does not currently have sufficient funding available to restore programs
and services above current levels.
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Use of Working Capital Reserves: The General Fund will require the use of $27.6
million in working capital reserves to fill budget deficits in fiscal years 2024-27. While the
use of reserves to cover ongoing expenditures is not a sustainable financial practice,
this is a short-term measure as staff expects revenue growth to moderate for the next
few years. Funding was previously set aside as working capital reserves to support
operations while revenues recover.
Master Facilities Use Agreement with Santa Monica-Malibu School District: The City of
Santa Monica and the Santa Monica-Malibu Unified School District (SMMUSD) have
enjoyed a long-standing partnership in serving the Santa Monica community. This has
resulted in a series of joint revenue measures and joint-use agreements between the
City and school district. In 2012, the City and SMMUSD entered into a Master Facilities
Use Agreement that provided the City with access to various SMMUSD facilities. This
agreement was extended in 2022 and expires in 2027. In 2018, the City entered into
the Measure YY/GS Master Facilities Agreement, which provided the City with access
to additional SMMUSD facilities. The original term of the Measure YY/GS Master
Facilities Agreement expires on June 30, 2028 and may be extended for an additional
10 years, subject to the approval of the governing bodies of both the City and
SMMUSD. Unlike the Master Facilities Use Agreement, the resources transferred to
SMMUSD pursuant to the Measure GS/YY Master Facilities Agreement result from
advisory measures approved by the voters that specified that half of the City’s
transaction and use tax revenues should be allocated to SMMUSD for various
purposes. Finally, in 2022, the voters approved Measure GS, which requires that the
City transfer the first $10 million in resources generated by this property transfer tax to
SMMUSD. The chart below illustrates the resources transferred to SMMUSD under
these various agreements from FY 2019-20 to FY 2024-25.
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Given that the Master Facilities Agreement expires within the five-year forecast period,
the City’s forecast demonstrates the financial impacts to the City if the agreement
expires and a scenario in which the agreement is perpetuated based on existing terms.
If the Master Facilities Agreement expires in 2027, it is anticipated that the City will
generate a surplus in FY 27-28 that is currently projected at $13.3 million, whereas if the
agreement is extended pursuant to existing terms, the City would generate a mild
surplus of about $500,000 in FY 27-28. Given that the Measure GS/YY Master Facilities
Agreement results from voter approved initiatives, the forecast assumes that the
agreement will be extended in 2028. Resources from the expiration of the Master
Facilities Agreement could be deployed to restore critical City services, however, the
impacts of potentially not having access to certain SMMUSD facilities will have to be
evaluated.
Contingency Reserves Gradually Restored: In FY 2023-24 the General Fund budget
will be backed by a Rainy Day fund totaling 13.5% of ongoing expenditures. The
Forecast assumes that the City will continue to rebuild its Rainy Day fund, reaching 15%
of ongoing expenditures in FY 2026-27. Strong reserves are necessary to provide
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essential services and retain jobs during emergencies and economic fluctuations. They
are also a signal of a City’s financial health and critical to maintaining the City’s AAA
credit rating.
Capital Improvement Program: Prior to the pandemic, the General Fund allocated $21
million a year to its Capital Improvement Program (CIP). This amount was reduced to
$7.3 million in FY 2020-21. The Forecast shows funding restored to $21 million in FY
2025-26. Of the $21 million set aside for capital projects, the majority of it is budgeted
for required ongoing maintenance, vehicle and technology replacement, safety-related
repairs and debt service, leaving less than one-quarter of the funding available for
community amenities and enhanced services. The reduction of the CIP over the last
four years has resulted in deferred infrastructure, technology and vehicle maintenance
replacement. In addition, over $358 million in citywide projects remain unfunded. More
information on General Fund funded and unfunded projects is included in the CIP
Addendum included in the Proposed FY 2023-25 Biennial Budget.
Other Funds Financial Forecast Update
Among the larger funds contributing to the City’s operations, the Water, Wastewater,
Big Blue Bus (BBB), Airport, Resource Recovery and Recycling (RRR), Cemetery and
Housing Authority Funds have sufficient revenue to cover operational and capital needs
during the forecast period.
The Pier and Beach Recreation Funds are projected to require General Fund
assistance. Continued revenue constraints, including the partial closure of the Pier Deck
parking, and pending plans to adjust beach parking rates, are significantly contributing
to the situation.
FY 2023-25 Midyear Revenue and Operating Expenditure Budget Adjustments
Midyear budget adjustments are made to reflect updated revenue projections, and to
facilitate continuity in key service areas, for the reasons noted below.
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Revenue Adjustments – General Fund: Staff projects General Fund revenues to reach
approximately $436.1 million in FY 2023-24. This projection is based on actual data
from July 2023 to February 2024 as well as anticipated changes in economic conditions
and community behaviors over the remainder of the fiscal year. These projections
require adjustments to increase FY 2023-24 Revised Budget revenue targets in the
General Fund by approximately $1.2 million. A summary of the significant budget
adjustments is shown below. Attachment A lists all revenue budget adjustments by
department and fund.
Sales Taxes Including GSH transaction and use tax
Revenues are anticipated to be $0.7 million and $0.6 below budget in FY 2023-24
and FY 2024-25, respectively, primarily due to corrected allocations of Santa Monica’s
share of the Countywide use-tax pools, the continued impact from the consumer shift
from brick-and-mortar purchases toward online sales, and a shift in consumer
spending away from tangible goods and towards services that are not subject to sales
tax. Starting in FY 2025-26 revenues are projected to increase by a 3% average
growth for the remainder of the forecast period.
Transient Occupancy Tax (TOT)
FY 2023-24 estimated revenues are about $0.2 million (0.3%) below budget, primarily
due to the delayed reopening of the Regent Hotel and the impact of the hotel worker
strikes. FY 2024-25 revenues are projected to increase by about $4.2 million (6.0%)
over budget plan reflecting greater than projected TOT revenues from the delayed
closure of the Fairmont Miramar for renovation and gradual recovery in the tourism
sector. The forecast reflects stronger business, group and international travel growth
starting mid-2024 and reaching peak 2019 levels by late 2025/early 2026 at annual
increases ranging from 6 to 15%, as tourism recovers and as hotels that closed and
will close for renovations reopen by the end of the forecast period.
Parking Facility Taxes
FY 2023-24 revenues are anticipated to be about $0.05 million (0.4%) below budget,
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reflecting changing behavior patterns of parkers, including the increased use of free
90-minute parking in the structures, prevalence of telecommuting and hybrid work
schedules and use of alternative modes of transportation. FY 2024-25 revenues are
expected to increase by about $0.21 million (1.9%) due to higher revenues from
private parking facilities, offset by revenue loss at the Pier and the 1550 Lot during the
Pier Bridge reconstruction project that will start in spring 2025 and last about two
years. The forecast reflects moderate annual growth of 1.75%, reflective of changing
behavior patterns of parkers. Staff is currently in the process of evaluating the
potential to place a General Tax on the November 2024 ballot to increase the parking
facility tax to reduce traffic congestion and the risk of traffic fatalities and serious
injuries in Santa Monica, while preserving free 90-minute parking in the downtown
lots.
Property Taxes
FY 2023-24 revenues are expected to be $1.5 million (1.8%) above budget, which is
consistent with the 2% CPI adjustment applied per Proposition 13 this year and robust
revenues derived from the former redevelopment project areas. FY 2024-25 revenues
are expected to increase by $1.2 million (2.6%) following the same trend as FY 2023-
24. As interest rates moderate or are reduced, it is projected there will be an increase
in homes sales and that prices, which are leveling off or declining will rebound -
increasing assessed property values. This is reflected in the revenues over the
forecast period, which are projected to increase in the range from 2.7% to 5%.
Business License Tax
Business license revenues are anticipated to be about $3.4 million and $2.7 million
above FY 2023-24 and FY 2024-25 budget, primarily due to greater than projected
gross receipts reported by businesses in FY 2023-24. This trend is anticipated to
continue throughout the forecast. Additionally, another factor for the revenue increase
are the focused compliance efforts by the Business License Inspector, a position that
was added in FY 2022-23. It is projected that the increases will moderate between
0.3% and 2.2% annually during the forecast period. Staff is currently undertaking a
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major effort to modernize our business license tax program, which had not been
significantly reviewed in over two decades. The impact of this project has not been
included in the forecast.
Parking
FY 2023-24 revenues are approximately $0.2 million less than budget primarily
reflecting a change in behavior patterns of parkers, including the increased use of free
90 minute parking in the structures, the prevalence of telecommuting and hybrid work
schedules, and use of alternative modes of transportation by visitors to Santa Monica.
FY 2024-25 revenues are expected to increase by about $0.8 million (2.3%) due to
moderate economic growth and one-time revenues associated with Cirque du Soleil’s
return to Santa Monica in the winter of 2024. The forecast reflects moderate annual
growth of 1.75%, reflective of changing behavior patterns of parkers. Staff is currently
in the process of conducting a citywide parking study, with recommendations
expected back in late 2024 to inform potential parking rate changes that would be
brought to the City Council and submitted to the California Coastal Commission in
2025.
Fees/Charges/Other
FY 2023-24 revenues are anticipated to be approximately $2.5 million below budget,
primarily due to a later than projected receipt of the first supplemental payment (per
Development Agreement) for the Miramar development project due to project delays,
less than projected printing and passport services revenues and decreased revenues
from commercial inspections by the Fire Department. FY 2024-25 is expected to be
$1.0 million lower than budget plan, primarily due to an adjustment related to the
Miramar development project. The budgeted amount for the Miramar project reflected
annual additional supplemental payments of $3.6 million once the hotel closed for
construction, however, due to project delays it is projected that the City will receive
the first supplemental payment of $2.0 million instead. The decrease is partially
mitigated by increased permitting fees due to the additional building inspectors to help
expedite the permitting process.
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Revenue Adjustments – Other Funds: FY 2023-24 and FY 2024-25 revenue changes in
the Other Funds result in decreases of approximately $0.2 million and $2.4 million,
respectively. Significant revenue adjustments in other funds are summarized below. All
revenue budget changes are detailed in Attachment A.
• Big Blue Bus Fund – Decrease of approximately $1.9 million in FY 2023-24 and
$2.3 million in FY 2024-25, reflects a deferral of anticipated capital revenue due
to the rebidding of 7th street activation project and timing of procurement and
acceptance of 15 battery electric buses.
• Housing Authority Fund – Decrease of $0.7 million in FY 2023-24 and $0.8
million in FY 2024-25, primarily from lower voucher utilization of Emergency
Housing Voucher (EHV) and Housing Choice Vouchers (HCV)/Section 8 HAP
Vouchers due to the prolonged period of time it takes a voucher holder to
successfully find and lease a unit. The decreases also reflect lower voucher
utilization of Section 8 HAP vouchers due to a delay in the lease-up of 57 project-
based units at 1413 Michigan Avenue. Decreases are partially offset by a
disbursement from the U.S. Department of Housing and Urban Development
(HUD) for retroactive reconciliation of administration fees.
• Miscellaneous Grants Fund – Increase of approximately $1.8 million in FY 2023-
24 related to grant awards. The increase primarily reflects funding for the
Douglas Park Playground Reconstruction project, funded through a combination
of local funds and grant funds from the Los Angeles County Regional Park and
Open Space District under the Los Angeles County 2016 Measure A grant
program. Increases also include two new grants to support the needs of older
adults and people with disabilities living in Santa Monica and for the preparation
of the City’s Local Hazard Mitigation Plan. FY 2024-25 reflects a decrease of
$0.7 million, primarily to correct the 2021 UASI Grant, which has been closed out
but was inadvertently budgeted.
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• Resource Recovery and Recycling Fund – One-time increase of $0.6 million in
FY 2023-24, reflecting security deposit forfeitures due to non-compliance by
construction and demolition-related contractors.
• Risk Management Administration Fund – Increases of $0.3 million in FY 2023-24
and $0.8 million in FY 2024-25, reflect increased payments from various funds
for their share of property insurance costs based on the September 2023
actuarial analysis, to ensure the fund is sufficiently funded to cover increased
insurance premiums.
• Self-Insurance, Bus Fund – Increases of $0.3 million in FY 2023-24 and $1.0
million in FY 2024-25, reflecting the payment by the Big Blue Bus Fund based on
an actuarial analysis conducted in September 2023 to ensure the self-insurance
fund has sufficient funding to cover expenses.
• Self-Insurance, Comprehensive Fund – Increases of $0.5 million in FY 2023-24
and $3.1 million in FY 2024-25, reflecting payments from various funds for their
share of the City’s general liability costs based on the September 2023 actuarial
analysis, to ensure the fund is sufficiently funded to cover claims and increased
insurance premiums.
• Vehicle Management Fund – Increase of approximately $4.5 million in FY 2023-
24 and $1.6 million in FY 2024-25, primarily reflecting a one-time contribution
from the RRR Fund for the purchase of six new RRR vehicles and associated
ongoing costs, as well as an expected increase in contributions from other funds
as a result of increased costs, associated with cost of living increases, for
delivering the services.
• Water Fund – Decreases of approximately $4.9 million in FY 2023-24 and $5.0
million in FY 2024-25 reflecting decreased water sales resulting from water use
reduction as mandated by the City’s Water Conservation Ordinance, partially
offset by an uptick in large development permits and the associated development
fees.
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Operating Budget – General Fund – Expenditure Adjustments: Staff proposes General
Fund operating expenditure adjustments that result in an approximate $1,848 increase
to the General Fund budget in FY 2023-24 and a $4.5 million increase in FY 2024-25.
The net increases to the General Fund expenditures are projected to be offset primarily
by greater than projected tax revenues, described earlier in this report, as well as new
field permit and building permitting fee revenue. While Attachment A details all
expenditure adjustments, highlights are noted below.
• $2.6 million increase in FY 2024-25, reflecting increased payment to the Self-
Insurance, General Liability and Auto Fund for the General Fund’s share of the
City’s general liability costs based on the September 2023 actuarial analysis, to
ensure the self-insurance fund is sufficiently funded to cover claims and
increased insurance premiums.
• $0.4 million increase in FY 2024-25 reflecting increased payments to the Self-
Insurance, Risk Management Fund for the General Fund’s share of property
insurance costs based on the September 2023 actuarial analysis, to ensure the
self-insurance fund is sufficiently funded to cover increased insurance premiums.
• One-time increase of $36,000 in City Council Discretionary funds and $14,000 for
travel expenses ($2,000 to the Mayor, Vice Mayor, and each Councilmember),
funded by staffing adjustments in the City Manager Office and the reallocation of
funding in Non-Departmental from an item that is no longer needed, but
inadvertently budgeted. Council travel and discretionary funds will be discussed
later in this report.
• One-time cost of $93,125 to retain the consulting firm of Fetterman Dunn to
undertake the necessary research, estimate staff and legal resources needed,
and prepare a conceptual Tenant Protections and Right to Counsel program for
Council consideration in Summer 2024. This item is funded by the Housing Trust
Fund.
• One-time cost of $95,500 to purchase a Below Market Housing (BMH) software
enhancement to the current online portal, which will create a more efficient and
streamlined customer service experience for affordable housing waitlist
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applicants, housing providers, and staff. This item is funded by the Housing
Trust Fund.
• The addition of 1.0 FTE limited-term Project Support Assistant in the General
Fund to support the Airport Conversion project, funded by the Airport Fund.
• Appropriation of $302,752 in FY 2024-25 for 2.0 FTE Building Inspectors to
improve permit processing time. The positions are funded by one-time
department savings from reduced overtime and professional services
expenditures in FY 2023-24 and additional Building and Safety revenues starting
FY 2024-25.
• Appropriation of $28,098 in FY 2023-24 and $70,965 in FY 2024-25 for 1.0 FTE
Guest Services Assistant to improve customer service for Community Recreation
facilities, including the issuance of outdoor sports facility permits. The position is
funded by increased field permit revenues.
• Reduction of $26,250 in FY 2023-24 and $102,750 in FY 2024-25 related to GSH
related allocations to Santa Monica Malibu School District and the Affordable
Housing Trust Fund, as a result of reduced Transaction and Use Tax revenues.
• One-time $1,170,000 adjustment to the City’s pension contribution related to the
unfunded liability in FY 2024-25. The new amount is based on the revised
valuation reports provided by CalPERS.
Operating Budget – Other Funds – Expenditure Adjustments: Staff proposes operating
expenditure adjustments in the Other Funds, that result in an approximate $0.2 million
decrease and $3.1 million increase, in FY 2023-24 and FY 2024-25, respectively.
Attachment A details all expenditure adjustments. Significant increases are summarized
below:
• $0.5 million and $0.5 million increases in FY 2023-24 and FY 2024-25,
respectively, reflecting increased payments from various funds to the Self-
Insurance, General Liability and Auto Fund for their share of the City’s general
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liability costs based on the September 2023 actuarial analysis, to ensure the fund
is sufficiently funded to cover claims and increased insurance premiums.
• $0.3 million and $0.4 million increases in FY 2023-24 and FY 2024-25,
respectively, reflect increased payments from various funds to the Self-
Insurance, Risk Management Fund for their share of property insurance costs
based on the September 2023 actuarial analysis, to ensure the fund is sufficiently
funded to cover increased insurance premiums.
• $0.3 million and $1.0 million increases in FY 2023-24 and FY 2024-25,
respectively, reflect increased payments from the Big Blue Bus Fund to the Self-
Insurance, General Liability and Auto Fund based on the September 2023
actuarial analysis, to ensure the fund is sufficiently funded to cover claims and
increased insurance premiums.
• A transaction to transfer funds in FY 2023-24 from the operating budget to the
capital improvement budget as follows: $522,327 in the Miscellaneous Grants
Fund and $67,673 of Transportation Impact Funds from the Special Revenue
Source Fund, for the Santa Monica Boulevard Safety Enhancement study
resulting in net zero impacts to each fund.
• $0.4 million increase in FY 2024-25 in the Resource Recovery & Recycling Fund,
reflects payment to the Vehicle Management Fund, and the corresponding $0.4
million appropriation in the Vehicle Management, to pay for the ongoing
maintenance of six new vehicles.
• A decrease of $1.7 million in FY 2023-24 and $0.3 million in FY 2024-25 in the
Housing Authority Fund, representing lower Housing Assistance Payment (HAP)
voucher utilization primarily due to a delay in the lease-up of 57 project based
units at 1413 Michigan Avenue as well as lower voucher utilization due to a
longer lease-up period on the Emergency Housing Voucher and Serial Inebriate
Programs.
Staffing Adjustments – All Funds: The combined midyear staffing adjustments in all
funds result in a net increase of 9.3 permanent FTE positions (7.3 in the General Fund)
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partially offset by deletion of 8.0 FTE temporary positions in the General Fund. The
changes are summarized below and detailed in Attachment C. Unless otherwise noted,
any changes that would result in a fiscal impact will be offset by the reallocation of
budgeted funds within departments’ budgets, resulting in a net zero impact to FY 2023-
25 budget. Attachment B is the Salary Resolution detailing new classifications and
salary rates.
The City Manager’s Office is proposing changes to realign resources to focus on
the City’s 911 dispatch center’s Computer Aided Dispatch (CAD) software, ensuring
round-the-clock functionality and connection of CAD with the City’s integrated public
safety systems, as well as to centralize supervision of the City’s video production
staffing and resources. These changes result in no new FTE.
The City Attorney’s Office is proposing a change to better align a position with the
duties performed. The cost of the increase will be absorbed within the department’s
existing budget. This change results in no new FTE.
The Community Development Department proposes the addition of 2.0 FTE
Combination Building Inspectors in the General Fund to create greater capacity to
perform inspections, thereby ensuring compliance with the City’s building
regulations, reducing permit processing time, and improving the City’s permitting
process. As discussed in the expenditure changes section, the positions will be
funded by one-time department savings from reduced overtime and professional
services expenditures in FY 2023-24 and additional Building and Safety revenues
starting FY 2024-25. This change results in 2.0 new permanent FTEs.
The Finance Department is proposing several changes to help create career
progression opportunities, align positions with duties performed and improve staff
recruitment and retention. These changes result in no new FTE.
The Human Resources Department is proposing changes to better align resources
to the department’s current priorities managing the day-to-day administration of the
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department. The changes will enable HR to be better positioned to support
employee and organizational development, including refocused efforts on citywide
staff training. These changes result in no new FTE.
The Information Services Department proposes the net addition of 1.0 FTE in the
General Fund. Leveraging the recent vacancy of a management position, the
department is proposing to add a GIS Technician to better support GIS Services
including the implementation of the technology, video systems and development of
the GIS layers required for the new Real Time Crime Center, and to add a Business
Process Technology Analyst to provide focused support for the new Permitting and
Land Management system. The Department is also proposing some changes to
ensure we safeguard the city from the increasing threats to our digital environment
and improve our long-term resilience as well as create opportunities for inter-
operational support, rather that siloed functions. These changes result in 1.0 new
permanent FTE.
The Library is proposing a change to address the growing needs of the Library’s
Literacy Education for Adults and Families (LEAF) program, which is being
expanded to include enhanced English as a Second Language (ESL) services.
LEAF comprises seven flagship services and a variety of outreach events offering
free literacy services to all ages. This change results in no new FTE.
The Public Works Department proposes the addition of 1.0 FTE limited-term
Project Support Assistant in the General Fund to address the current backlog of
maintenance and construction projects at the Airport and will be funded by the
Airport Fund. In addition, the Department proposes the addition of 2.0 FTE positions
in the Vehicle Management Fund to improve preventative maintenance required for
the safety of City staff, reduce downtime of vehicles and lessen disruption to City
operations, and ensure compliance with State and Federal regulations. These
changes result in 1.0 new limited-term FTE in the General Fund, funded by the
Airport Fund and 2.0 new permanent FTE in the Vehicle Management Fund.
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The Recreation & Arts Department proposes the net addition of 3.3 permanent
FTE, offset by the deletion of 8.0 FTE temporary positions and additional revenues,
to activate the Miles Playhouse and Camera Obscura facility and expand arts and
culture programming throughout the City, enhance access to park facilities for
community use, and to improve customer service for Community Recreation facilities
including the issuance of outdoor sports facility permits. The cost of the added
positions will be offset by additional field permit revenues and by repurposing
existing staff resources within the department. These changes result in 3.3 new
permanent FTE and a reduction of 8.0 temporary FTE.
The Department of Transportation is proposing a change to centralize the financial
and administrative tasks for the Mobility division, which has not had a permanent,
budgeted analyst since the budget restructuring process in 2020. The change will
provide critical oversight of all Mobility grants, fees, contracts, financial reporting,
and budget development. It will also allow the department’s Transportation Planners
to focus on their core functions advancing city priority projects, including capital
projects that protect the safety of all roadway users and advance equity by lowering
household transportation costs, as well as regional transportation coordination,
particularly as the city prepares for major events including the World Cup and LA28
Olympics. This change results in no new FTE.
Resolution to delete obsolete position classifications
As part of its efforts to maintain the City’s classification plan, the Human Resources
Department recently conducted a review of the classification plan to determine which
classifications were no longer being used and for which there is no foreseeable need.
Human Resources Department staff, after consultation with the relevant City leadership,
has determined that the identified classifications presented in the attached resolution
(Attachment D) are obsolete and may be removed from the classification plan.
Therefore, Human Resources Department staff recommend these classifications and
associated salary rates be abolished.
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Capital Improvement Program (CIP) Budget Adjustments
Recommended changes to the FY 2023-24 CIP budget include a net budget increase of
approximately $8.6 million and $1.2 million in FY 2024-25. The budget changes are
detailed in Attachment A and summarized below.
Non-General Funds – Capital Budget:
Vehicle Replacement Program – changes include $4.0 million in the Vehicle
Management Fund to pay for the purchase of six (6) new vehicles, including 2 new
bulky item collection vehicles. This increased cost in the Vehicle Management Fund
is offset by a corresponding $4.0 million reimbursement, as an internal service
contribution, from the Resource Recovery and Recycling Fund.
Santa Monica Boulevard Safety Enhancement Study – increase of $590,000 funded
by grant funds in the amount of $522,327 from CalTrans and a required local match
of $67,673 from Transportation Impact Fee funds. The Santa Monica Boulevard
Safety Enhancement Study was approved by Council on November 14, 2023. Staff
requests that funds be moved to the Capital Improvement Program.
Grant Related Changes
Acceptance of Grant Awards
California Department of Aging – Local Aging & Disability Action Planning (LADAP)
Grant: On November 13, 2023 the City of Santa Monica was awarded a $200,000
grant through the competitive, statewide Local Aging & Disability Action Planning
(LADAP) Grant Program. The local age-and disability-friendly plans developed
through this opportunity are aimed at improving a community’s livability for people of
all ages, centering on equity, cultural competency, community engagement, and
disability inclusion principles and practices. Staff recommends that Council authorize
the City Manager to accept the LADAP award so that staff may proceed with
development of a strategic plan to address the needs of older adults and people with
disabilities living in Santa Monica. If authorized, the Human Services Division (HSD)
will begin planning activities in Q1 2024, including the release of a Request for
Proposals (RFP) to identify a subject-matter expert to help lead the planning process
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alongside City staff, non-profit partners, Commissions, and key stakeholders. HSD
plans to return to Council in Q1/Q2 2024 with an RFP award recommendation.
U.S. Department of Homeland Security, Federal Emergency Management Agency
(FEMA) Hazard Mitigation Grant Program (HMGP): The U.S. Department of
Homeland Security, Federal Emergency Management Agency (FEMA) Hazard
Mitigation Grant Program (HMGP) through the State of California, Governor’s Office
of Emergency Services (CalOES) awarded the Office of Emergency Management a
$135,000 grant to support the preparations of the Local Hazard Mitigation Plan. Staff
recommends that Council authorize the City Manager to accept the FEMA grant so
that funds can be utilized to conduct a social vulnerability analysis that builds upon
the City’s Local Hazard Mitigation Plan. A consultant would identify and assess the
City’s social vulnerabilities in relationship to local natural hazards, focusing on the
Pico Neighborhood, Census Tract 7018.10. The consultant would also present
constructive recommendations on community-based, equity-focused mitigation
measures may improve community resiliency. The analysis and plan would be
conducted with a heavy emphasis on community engagement, including consensus-
building events to better educate community members on local hazards and collect
feedback on community-driven priorities. The findings and final plan would be
provided in an accessible format for community members and create a distribution
strategy to better prepare Santa Monica residents.
Additional Grant Funding
California Office of Traffic Safety for the 2023 STEP (Selective Traffic Enforcement
Program) Grant: The Santa Monica Police Department (SMPD) was previously
awarded a $306,000 Selective Traffic Enforcement Program (2023 STEP) grant from
the California Office of Traffic Safety (OTS) for a year-long program of education and
special enforcement efforts to help prevent traffic-related deaths and injuries. SMPD
was recently awarded an additional award amount of $31,600.
California State Library Zip Books Project: In FY 2022-23, the California State
Library awarded the Library a grant of $2,690 from California Library Services Act
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funds to purchase books that are not available at local libraries (“Zip Books Project”.)
The California State Library recently awarded the Library additional funding of
$2,787 for the Zip Books Project for FY 2023-24.
Council Discretionary Funds: Included in the FY 2023-24 midyear adjustments is a one-
time appropriation of $36,000 to Council discretionary funds. With this change, the
amount unprogrammed for FY 2023-24 will be $80,681. The annual appropriation of
Council discretionary funds occurs once a year at budget adoption and is adjusted
annually for cost of living. The FY 2023-24 Adopted Budget amount was $125,150.
On June 27, 2023, Council directed staff to reappropriate unspent FY 2022-23 individual
Councilmember travel budgets at the end of the year to the FY 2023-24 Council budget,
to supplement existing Council discretionary funds. The reappropriated amount was
$9,762. As of February 8, 2024, Councilmembers have collectively spent 35% of the
$59,486 in their individual travel funds, and there are remaining funds of $38,601. Staff
recommends permanently adopting the practice of reappropriating unspent travel funds
to supplement existing Council Discretionary fund allocation.
Past Council Actions
Meeting Date Description
06/27/2023
(Attachment E)
Adoption of the First Year and Approval of the Second Year
of the FY 2023-25 Biennial Budget Adoption
Environmental Review
The FY 2023-24 Midyear Budget is categorically exempt from CEQA pursuant to
Section 15061(b)(3) of the CEQA Guidelines. The Midyear Budget is covered by the
common sense exemption which states that CEQA does not apply, “where it can be
seen with certainty that there is no possibility that the activity in question may have a
significant effect on the environment.” Therefore, it can be seen with certainty that
actions would not result in adverse physical impacts on the environment, and as such,
is categorically exempt from CEQA.
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Financial Impacts and Budget Actions
Recommended FY 2023-24 midyear budget adjustments, and related FY 2024-25
adjustments, result in:
• Revenues: FY 2023-24 and FY 2024-25 citywide increases of approximately
$1.02 million and $3.99 million respectively
In millions FY 2023-24 FY 2024-25
General Fund $ 1.18 $ 6.40
Other Funds $ (0.16) $ (2.41)
Total All Funds $ 1.02 $ 3.99
• Expenditures: FY 2023-24 and FY 2024-25 citywide increases of approximately
$8.43 million and $8.80 million respectively
In millions
Operating
FY 2023-24 FY 2024-25
General Fund $ 0.00 $ 4.45
Other Funds $ (0.21) $ 3.14
Total All Funds $ (0.21) $ 7.59
In millions
Capital
FY 2023-24 FY 2024-25
General Fund $ - $ -
Other Funds $ 8.64 $ 1.21
Total All Funds $ 8.64 $ 1.21
• FTEs: The combined midyear staffing adjustments in all funds result in a total net
increase of 1.3 FTEs.
Permanent Temporary
General Fund 7.3 (8.0)
Other Funds 2.0 0.0
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Total All Funds 9.3 (8.0)
Details of FY 2023-24 and FY 2024-25 budget adjustments are in Attachment A.
Prepared By: Jennifer Young, Budget Manager
Approved
Forwarded to Council
Attachments:
A. Attachment A - Budget Adjustments
B. Attachment B - Salary Resolution
C. Attachment C - Position and Classification Changes
D. Attachment D - Abolishment Resolution
E. Attachment E - June 27, 2023 Staff Report – FY 2023-25 Budget Adoption (Web
Link)
F. Attachment F - March 11, 2023 Staff Report – Council Workshop (Web Link)
G. Written Comments
H. PowerPoint Presentation
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ATTACHMENT A
Adopted
Budget
Year to Date
Approved
Appropriations (A)
Midyear
Appropriations
Revised
Budget after
Midyear
Approved
Budget
Plan
Year to Date
Approved
Adjustments
Midyear
Adjustments
Revised
Budget Plan
after
Midyear
General Fund 438.69 (3.76) 1.18 436.11 451.90 0.40 6.40 458.70
All Other Funds 396.26 35.87 (0.16) 431.96 418.72 0.09 (2.41) 416.40
Total 834.95 32.10 1.02 868.07 870.62 0.49 3.99 875.10
Adopted
Budget
Year to Date
Approved
Appropriations (A)
Midyear
Appropriations
Revised
Budget after
Midyear
Approved
Budget
Plan
Year to Date
Approved
Adjustments
Midyear
Adjustments
Revised
Budget Plan
after
Midyear
General Fund 423.37 1.19 0.00 424.57 443.63 0.40 4.45 448.48
All Other Funds 288.82 8.11 (0.21) 296.72 296.35 0.15 3.14 299.65
Total 712.19 9.31 (0.21) 721.29 739.98 0.55 7.59 748.12
Adopted
Budget
Year to Date
Approved
Appropriations (A)
Midyear
Appropriations
Revised
Budget after
Midyear
Approved
Budget
Plan
Year to Date
Approved
Adjustments
Midyear
Adjustments
Revised
Budget Plan
after
Midyear
General Fund 13.50 - - 13.50 14.99 - - 14.99
All Other Funds 103.36 1.33 8.64 113.33 83.75 - 1.21 84.96
Total 116.87 1.33 8.64 126.84 98.74 - 1.21 99.95
SUMMARY OF CHANGES TO
FY 2023-25 ADOPTED BIENNIAL BUDGET
A Reflects year-to-date budget appropriations approved by Council on 7/18/23 (items 5-B and 5-G), 8/22/23 (item 5-H), 9/26/23 (item 5-C), 10/24/23 (items 5-E, 5-I, and 11-A ), 11/14/23 (item 5-C).
FY 2023-24 FY 2024-25
Revenues (in millions)
Capital Expenditures (in millions)
Operating Expenditures (in millions)
FY 2023-24 FY 2024-25
FY 2023-24 FY 2024-25
Page A-1 of 14
11.B.a
Packet Pg. 259 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
General Fund Non-Departmental
Represents reductions in Sales and Transaction and Use Taxes (TUT) primarily due to corrected allocations of
Santa Monica’s share of the Countywide use-tax pools,
the continued impact from the consumer shift from brick-
and-mortar purchases toward online sales, and a shift in
consumer spending away from tangible goods and
towards services that are not subject to sales tax.
$ (677,829) $ (623,744)
General Fund Non-Departmental
Represents a reduction in Transient Occupancy Tax
(TOT) primarily due to the delayed reopening of the Regent Hotel and the impact of the hotel worker strikes.
FY 2024-25 increase reflects greater than projected TOT
revenues from the delayed closure of the Fairmont
Miramar for renovation and gradual recovery in the
tourism sector.
$ (201,105) $ 4,209,734
General Fund Non-Departmental
Represents a reduction in Parking Facility Tax reflecting
changing behavior patterns of parkers, including the
prevalence of telecommuting and hybrid work schedules
and use of alternative modes of transportation by visitors to Santa Monica.
$ (45,000) $ (110,000)
General Fund Non-Departmental
Represents an increase in Property Taxes to align with
Proposition 13's CPI adjustment and robust revenues
derived from the former redevelopment project areas.
$ 1,489,546 $ 1,198,764
General Fund Non-Departmental
Increased Business License Tax revenue represents
greater than projected gross receipts reported by
businesses in FY 2023-24. This trend is anticipated to
continue throughout the forecast. Additionally, the
revenue increase is also attributed to the focused compliance efforts by the Business License Inspector, a
position that was added in FY 2022-23.
$ 3,380,500 $ 2,649,200
General Fund Transportation
Represents changing behavior of parkers, including the
increased use of free 90 minute parking in the structures,
prevalence of telecommuting and hybrid work schedules
and use of alternative modes of transportation by visitors
to Santa Monica.
$ (195,000) $ (70,000)
General Fund Non-Departmental
Decrease is primarily due to delay in the first
supplemental payment of $2.0 million from the Miramar
Project. Per the terms of the Developer Agreement, the
first supplemental payment was to be issued with filing of
the plan check application for the project’s first building permit. Due to project delays, the initial payment is now
projected to be received in FY 2024-25 with the additional
supplemental payments projected for future years.
$ (2,000,000) $ (1,600,000)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
REVENUE BUDGET ADJUSTMENTS
Page A-2 of 14
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Packet Pg. 260 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
REVENUE BUDGET ADJUSTMENTS
General Fund Records and Election Services
Represents a one-time revenue reduction based on
actuals to date for printing and passport services. The Passport Agent position remained vacant for the first half
of FY 2023-24.
$ (169,700)
General Fund Library Represents an increase in room rental revenue due to
the expansion in service hours at the library. $ 6,000 $ 8,000
General Fund Police
Primarily represents an increase in auto impound fees
due to increasing visitors to the City and normalization of
staffing levels.
$ 133,150 $ 193,150
General Fund Fire
The reduction represents a revenue shortfall in
commercial inspection fees due to staffing vacancies in
the Fire Prevention division. The division is now fully staffed.
$ (300,000)
General Fund Finance Represents a one-time increase in State claims revenues
due to receipt of prior year reimbursements. $ 2,401
General Fund Housing and
Human Services
Represents revised projections based on higher childcare
program participation (13% increase) and reduced need
for financial assistance where 62% of families are paying
full fee.
$ 57,102 $ 42,676
General Fund Recreation and Arts
Represents higher than expected demand for park
building rentals, as well as additional field permit
revenues offsetting the cost of permanent staffing.
$ 103,098 $ 145,965
General Fund Public Works Represents the removal of 56 utility pole lease sites that are no longer needed due to the T-Mobile and Sprint
merger.
$ (49,050) $ (50,500)
General Fund Transportation
Represents increased contributions from the Beach and
Pier funds to support the growing costs of parking
operations due to increased usage of the Beach and Pier
lots.
$ 200,000 $ 200,000
General Fund Transportation
Represents a decrease in traffic control fee revenue primarily due to Southern California Edison and telecom
companies finalizing major infrastructure enhancements
in the city, potentially leading to a reduction in utility work
requiring Temporary Traffic Control Plans
$ (180,422) $ (180,422)
General Fund Community
Development
Represents an increase in building fees offsetting the
cost to add 2.0 FTE building inspectors to address
permitting demand.
$ 302,752
General Fund Community
Development
Represents a one-time shift in timing of receipt of
condominium tax revenue due to the postponement of
major condominium projects as a result of the updated
Housing Element.
$ (106,000) $ 182,000
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ATTACHMENT A
Fund Department(s)Description FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
REVENUE BUDGET ADJUSTMENTS
General Fund Community
Development
Represents one-time decreases in enforcement revenue
due to staff vacancies. $ (116,092)
General Fund Community
Development
Represents a decrease in plan check and seismic fee
revenue due the postponement of projects due to
interest rates and uncertain economy.
$ (152,375) $ (100,000)
Total General Fund Revenue Changes $ 1,179,224 $ 6,397,575
FY 2023-24 FY 2024-25
Community Development $ (374,467) $ 384,752
Finance $ 2,401 $ -
Fire $ (300,000) $ -
Housing and Human Services $ 57,102 $ 42,676
Library $ 6,000 $ 8,000
Police $ 133,150 $ 193,150
Public Works $ (49,050) $ (50,500)
Records and Election Services $ (169,700) $ -
Recreation and Arts $ 103,098 $ 145,965
Transportation $ (175,422) $ (50,422)
Non-Departmental $ 1,946,112 $ 5,723,954
$ 1,179,224 $ 6,397,575
Funding Source Department(s)Description FY 2023-24 FY 2024-25
General Fund Revenue Changes by Department
Grand Total General Fund Revenue Changes
Page A-4 of 14
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Packet Pg. 262 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
REVENUE BUDGET ADJUSTMENTS
Airport Fund Public Works Represents greater hangar vacancies than originally
anticipated and early lease terminations. $ (250,000)
Airport Fund Public Works
Represents higher than anticipated demand for events
scheduled at Barker Hangar and other venues at the
Airport.
$ 40,000 $ 40,000
Airport Fund Public Works Represents a reduction in filming revenues due to
industry strikes in FY 2023-24. $ (4,000)
Airport Fund Public Works Represents one-time collection of three large violation
fees. $ 4,000
Airport Fund Public Works
Represents an increase in revenue to reflect a minimum
annual property management fee of $65,000 under a new
agreement with Santa Monica College.
$ 18,815 $ 17,429
Airport Fund Public Works
Represents a reduction in retail/office rental revenues due to unexpected lease vacancies and the exercise by
Santa Monica College of its option to expand its
leasehold on non-aviation land further reducing
retail/office space at the Airport.
$ (205,000) $ (112,400)
Beach Fund Community
Development
Represents a one-time decrease in Filming permits due to less demand resulting from the SAG and WGA strikes.
Revenues are expected to return to normal in FY 2024-
25.
$ (50,000)
Big Blue Bus Fund Transportation Represents updated funding from Measure R capital
grants. $ 14,610
Big Blue Bus Fund Transportation
Represents capital revenue to be used as local match for
bus procurement, which will be received in a year later
than projected - in FY25/26 due to timing of receipt and
acceptance of buses.
$ (2,367,267)
Big Blue Bus Fund Transportation
Represents deferral of anticipated capital revenue
associated with the 7th street activation project. The
project has been delayed as a result of unsuccessful bids for the project scope of work. Revenues will not be
received until project expenses are incurred when the
project moves forward. The timing of the project is
unknown at this time.
$ (1,965,868)
Big Blue Bus Fund Transportation
Represents increase in revenue associated with Low
Carbon Fuel Standard credits (LCFS) for fleet conversion
to battery-electric buses (BEB). Pending the availability of
funds, revenue is expected to increase overtime as fleet
transitions to 100% BEB.
$ 60,000 $ 60,000
Citizens' Option for
Public Safety (COPS)
Fund
Police Dept Represents increases of actual Citizens' Option for Public
Safety (COPS) revenues received from State of CA. $ 15,000 $ 15,000
Gas Tax Fund Public Works
Represents recently released Department of Finance's allocations of Local Streets and Roads (LSR) funds to
cities and counties through the Highway Users Tax
Account (HUTA) and the Road Maintenance and
Rehabilitation Account (RMRA).
$ (183,147)
Housing Authority Fund Housing and
Human Services
Represents disbursement from HUD for retroactively
reconciled Admin Fees as well as higher than projected increase in Admin Fee rates. $ 298,254 $ 217,669
Housing Authority Fund Housing and
Human Services
Represents lower voucher utilization and a reduction in
housing assistance payments due to a longer lease-up
period.
$ (1,047,373) $ (1,057,297)
Page A-5 of 14
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ATTACHMENT A
Fund Department(s)Description FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
REVENUE BUDGET ADJUSTMENTS
Miscellaneous Grants
Fund City Manager
Represents the award of a new grant from the U.S.
Department of Homeland Security, Federal Emergency
Management Agency (FEMA) Hazard Mitigation Grant
Program (HMGP) through the State of California,
Governor’s Office of Emergency Services (CalOES) to support the preparation of the Local Hazard Mitigation
Plan.
$ 135,000 $ -
Miscellaneous Grants Fund Housing and Human Services
Represents funds not being committed to City's Human
Services Grants Program (HSGP) for FY 2023-24 and beyond. Housing Authority will repurpose funds for
another use.
$ (14,121) $ (21,672)
Miscellaneous Grants
Fund
Housing and
Human Services
Represents the loss in subsidies from the State of
California when it deemed that neither the PAL nor the VAP Summer Food Service Program sites met the
definition of being low-income in 2023 based on census
data. The PAL and VAP sites will reapply in 2024.
$ (10,000)
Miscellaneous Grants
Fund
Housing and
Human Services
Represents a correction to transfer revenues between
Funds. The revenue for the Childcare Linkage Fee is
being moved from the Miscellaneous Grants Fund to the Special Source Revenue Fund.
$ (35,000) $ (35,000)
Miscellaneous Grants
Fund
Housing and
Human Services
Represents the acceptance of a new Local Aging and
Disability Action Planning (LADAP) Grant to retain a
consultant to develop a strategic plan that will address the needs of older adults and people with disabilities
living in Santa Monica.
$ 200,000
Miscellaneous Grants
Fund
Information
Services
Represents a cleanup item to eliminate budget from FY
2024-25, as no additional funding is expected for the
Urban Area Security Initiative (UASI) 2021 grant cycle.
$ (692,153)
Miscellaneous Grants
Fund Library
Represents an increase to the award amount for the new California Library Literacy Services (CLLS) grant to
provide enhanced English as a Second Language (ESL)
services.
$ 15,500
Miscellaneous Grants
Fund Police Dept
Represents a cleanup item to correct remaining available
funds from the Urban Area Security Initiative (UASI) 2020 grant cycle and the California Office of Traffic Safety for
the Selective Traffic Enforcement Program (STEP) 2021
grant cycle.
$ 30,873
Miscellaneous Grants
Fund Police Dept
Represents the additional award amount from the
California Office of Traffic Safety for the 2023 STEP
(Selective Traffic Enforcement Program) Grant for
education and special enforcement efforts to help prevent
traffic-related deaths and injuries.
$ 31,600
Miscellaneous Grants Fund Public Works
Represents the award of a new grant from the Los
Angeles County Regional Park and Open Space District
under the Los Angeles County 2016 Measure A grant
program, which will finance the Douglas Park Playground
Reconstruction project.
$ 1,443,700
Pier Fund Community
Development
Represents an increase in outdoor dining revenue due to
retroactive payments of amounts due and revenue from
new licenses.
$ 30,000 $ 30,000
Page A-6 of 14
11.B.a
Packet Pg. 264 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
REVENUE BUDGET ADJUSTMENTS
Resource Recovery &
Recycling Fund Public Works
Represents revenue from performance security deposit
forfeitures as a result of non-compliance by construction
and demolition-related contractors.
$ 600,000
Risk Management
Administration Finance
Represents increased payments from other funds for
property insurance due to higher renewal premiums than
what was originally anticipated by the City's broker due to
California's natural disasters, such as wildfires and
hurricanes, and carriers leaving the market altogether.
$ 312,526 $ 800,402
Self Insurance, Bus
Fund Non-Departmental
Represents increased payment from Big Blue Bus fund
based on the September 2023 actuarial analysis
completed by an independent actuary to ensure self-
insurance fund has sufficient funding to cover expenses.
$ 300,000 $ 1,000,000
Self Insurance, Comprehensive Fund Non-Departmental
Represents increased payments from other funds based
on the September 2023 actuarial analysis completed by an independent actuary to ensure self-insurance fund has
sufficient funding to cover expenses.
$ 482,039 $ 3,100,004
Special Revenue Source Fund City Manager Represents a correction for the Kiwanis donation, which was received a year later than expected. $ 70,000 $ -
Special Revenue Source
Fund
Housing and
Human Services
Represents a correction to transfer revenue between Funds. The revenue for the Childcare Linkage Fee is
being moved from the Miscellaneous Grants Fund to the
Special Source Revenue Fund.
$ 35,000 $ 35,000
Special Revenue Source
Fund Non-Departmental
Represents a correction for the revenue from the fees
paid by cable operators, which was inadvertently omitted
from the FY 2023-25 Budget.
$ 207,000 $ 207,000
Special Revenue Source
Fund Transportation
Represents a decrease in Transporation Impact Fees
based on updated revenue projections analyzing actuals in the last three years. $ (275,000) $ (275,000)
Vehicle Management Fund Public Works Represents lower than anticipated increase in Southern California Gas rates. $ (300,000) $ (300,000)
Vehicle Management
Fund Public Works
Represents the increase of vehicle maintenance revenue charged to non-General Funds into the Vehicle
Management Fund associated with adding 1.0 FTE
Senior Mechanic and 1.0 FTE Mechanic I.
$ 57,961 $ 180,029
Vehicle Management Fund Public Works
Represents revenue into the Vehicle Management Fund
from the Resource Recycling and Recovery (RRR) Fund,
associated with the purchase of six new RRR vehicles.
$ 4,025,703 $ 977,912
Vehicle Management
Fund Public Works
Adjustment to revenue from vehicle maintenance charges billed to user departments. The increase adjusts the
budgeted projections for cost of living increases on
expenses to capture full cost recovery on vehicle
maintenance services. The cost for services charged to
user departments will increase resulting in increased
revenue to the fund.
$ 715,300 $ 715,300
Water Fund Public Works
Represents reimbursements from Stormwater and
Wastewater Funds for staff time expended on behalf of
those funds.
$ 54,443 $ 40,017
Water Fund Public Works Represents an uptick in large development permits and
the associated development fees. $ 500,000 $ 500,000
Page A-7 of 14
11.B.a
Packet Pg. 265 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
REVENUE BUDGET ADJUSTMENTS
Water Fund Public Works
Represents the decline in water consumption as a result
of continued water conservation efforts and the
expectation of another extreme wet winter.
$ (5,500,000) $ (5,500,000)
Total Other Fund Revenue Changes $ (157,685) $ (2,409,527)
FY 2023-24 FY 2024-25
total fund Airport Fund $ (396,185) $ (54,971)
total fund Beach Fund $ (50,000) $ -
total fund Big Blue Bus Fund $ (1,891,258) $ (2,307,267)
Citizens' Option for Public Safety (COPS) Fund $ 15,000 $ 15,000
Gas Tax Fund $ (183,147) $ -
total fund Housing Authority Fund $ (749,119) $ (839,628)
total fund Miscellaneous Grants Fund $ 1,782,052 $ (733,325)
total fund Pier Fund $ 30,000 $ 30,000
total fund Resource Recovery & Recycling Fund $ 600,000 $ -
total fund Risk Management Administration $ 312,526 $ 800,402
Self Insurance, Bus Fund $ 300,000 $ 1,000,000
Self Insurance, Comprehensive Fund $ 482,039 $ 3,100,004
total fund Special Revenue Source Fund $ 37,000 $ (33,000)
total fund Vehicle Management Fund $ 4,498,964 $ 1,573,241
total fund Water Fund $ (4,945,557) $ (4,959,983)
$ (157,685) $ (2,409,527)
$ 1,021,539 $ 3,988,048 Total Revenue Changes All Funds
Grand Total Other Funds Revenue Changes
Other Fund Revenue Changes by Fund
Page A-8 of 14
11.B.a
Packet Pg. 266 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description
FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
City Manager $ 19,416
City Attorney $ 23,035
Records and
Elections Services $ 6,172
Community Development $ 54,999
Fire Dept $ 160,615
Finance $ 20,660
Housing and Human
Services $ 104,708
Human Resources $ 9,394
Information Services $ 59,566
Library $ 16,535
Police Dept $ 574,592
Public Works $ 1,269,537
Recreation and Arts $ 30,652
Transportation $ 216,436
Transportation $ 147,672
Non-Departmental $ 295,344
City Council $ 50,000
City Manager $ (27,923) $ 198,679
Non-Departmental $ (22,077) $ (198,679)
Housing and Human
Services $ 93,125
Non-Departmental $ (93,125)
Housing and Human
Services $ 95,500
Non-Departmental $ (95,500)
Public Works $ 46,946 $ 116,763
Non-Departmental $ (46,946) $ (116,763)
General Fund Community
Development
This net zero adjustment reflects the addition of 2.0 FTE
Building Inspectors, offset by one-time savings from
overtime and professional services expenditures in FY
2023-24 and ongoing additional Building and Safety
revenues starting in FY 2024-25.
$ 302,752
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
EXPENDITURE BUDGET ADJUSTMENTS
General Fund
Represents increased payments to the General Liability and Auto Fund based on the September 2023 actuarial
analysis completed by an independent actuary to achieve
a 75% confidence level (statistical certainty that an
actuary believes funding will be sufficient to cover claim
expenses, excess insurance premiums and program
overhead).
General Fund
Represents increased payments to the Risk Management
Administration Fund for property insurance due to higher
renewal premiums than what was originally anticipated by the City's broker due to California's natural disasters,
such as wildfires and hurricanes, and carriers leaving the
market altogether.
General Fund
This adjustment reflects the addition of 1.0 FTE Project
Support Assistant (limited term thru 12.31.2028) funded
by the Airport Fund.
This net zero adjustment reflects a one-time increase to
City Council's discretionary funds and travel accounts; equity adjustments within the City Manager's Office; and
the addition of 1.0 FTE 911 CAD Administrator, offset by
the deletion of 1.0 FTE Administrative Analyst and
reallocation of non-departmental funds.
General Fund
This adjustment reflects the Tenant Protections and a
Right to Counsel program as part of the City's Homeless Prevention Strategy, funded by the Housing Trust Fund.General Fund
General Fund
This adjustment reflects the purchase of Below Market Housing (BMH) Software Portal Enhancement for
Tenants and Landlords, funded by the Housing Trust
Fund.
Page A-9 of 14
11.B.a
Packet Pg. 267 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description
FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
EXPENDITURE BUDGET ADJUSTMENTS
General Fund Recreation and Arts
This adjustment reflects the addition of 1.0 FTE Guest
Services Assistant for Outdoor Sports Facility permitting, Memorial Park front office and providing enhanced
customer service and support for the Community
Recreation Division, offset by additional field permit
revenues.
$ 28,098 $ 70,965
General Fund Non-Departmental
This reflects adjustments to the Measure GSH allocation
for SMMUSD and affordable housing transfer
corresponding with lower than projected Transaction and
Use Tax (TUT) revenue. The TUT revenue budget is also
being reduced.
$ (26,250) $ (102,750)
General Fund Non-Departmental
Adjustment related to CalPERS pension contribution
increases related to the unfunded liability in FY 2024-25.
The new amount is based on the revised valuation
reports provided by CalPERS.
$ 1,170,000
Total General Fund Operating Expenditure Changes $ 1,848 $ 4,450,300
FY 2023-24 FY 2024-25
City Council $ 50,000 $ -
City Manager $ (27,923) $ 218,095
City Attorney $ - $ 23,035
Records and Elections Services $ - $ 6,172
Community Development $ - $ 357,751
Fire Dept $ - $ 160,615
Finance $ - $ 20,660
Housing and Human Services $ 188,625 $ 104,708
Human Resources $ - $ 9,394
Information Services $ - $ 59,566
Library $ - $ 16,535
Police Dept $ - $ 574,592
Public Works $ 46,946 $ 1,386,300
Recreation and Arts $ 28,098 $ 101,617
Transportation $ - $ 364,108
Non-Departmental $ (283,898) $ 1,047,152
$ 1,848 $ 4,450,300 Grand Total General Fund Operating Expenditure Changes
General Fund Expenditure Changes by Department
Page A-10 of 14
11.B.a
Packet Pg. 268 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description
FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
EXPENDITURE BUDGET ADJUSTMENTS
Airport Fund Public Works $ 12,953 $ 14,341
Community
Development $ 11,617 $ 12,863
Public Works $ 27,020 $ 29,916
Recreation and Arts $ 6,752 $ 7,475
Cemetery Fund Public Works $ 9,847 $ 10,901
Community
Development $ 12,371 $ 13,696
Police Dept $ 2,905 $ 3,216
Public Works $ 52,963 $ 58,638
Resource Recovery &
Recycling Fund Public Works $ 121,430 $ 134,441
Risk Management
Administration Finance $ 11,805 $ 13,069
Vehicle Management
Fund Public Works $ 12,248 $ 13,561
Wastewater Fund Public Works $ 138,188 $ 152,994
Water Fund Public Works $ 61,940 $ 68,576
Airport Fund Public Works $ 59,656 $ 68,168
Public Works $ 441 $ 504
Recreation and Arts $ 15,776 $ 18,028
Big Blue Bus Fund Transportation $ 71,378 $ 81,562
Cemetery Fund Public Works $ 12,774 $ 14,596
Community
Development $ 59,229 $ 67,679
Police Dept $ 537 $ 614
Public Works $ 93 $ 106
Resource Recovery &
Recycling Fund Public Works $ 707 $ 808
Risk Management Administration Finance $ 187 $ 214
Vehicle Management
Fund Public Works $ 27,880 $ 31,857
Wastewater Fund Public Works $ 10,412 $ 11,897
Water Fund Public Works $ 49,562 $ 56,633
Big Blue Bus Fund Transportation
Represents increased payment to the Transit Liability
Fund based on the September 2023 actuarial analysis
completed by an independent actuary to achieve a 75%
confidence level (statistical certainty that an actuary
believes funding will be sufficient to cover claim
expenses, excess insurance premiums and program overhead).
$ 300,000 $ 1,000,000
Beach Fund
Pier Fund
Pier Fund
Beach Fund
Represents increased payments to the General Liability and Auto Fund based on the September 2023 actuarial
analysis completed by an independent actuary to achieve
a 75% confidence level (statistical certainty that an
actuary believes funding will be sufficient to cover claim
expenses, excess insurance premiums and program
overhead).
Represents increased payments to the Risk Management
Administration Fund for property insurance due to higher
renewal premiums than what was originally anticipated by
the City's broker due to California's natural disasters, such as wildfires and hurricanes, and carriers leaving the
market altogether.
Page A-11 of 14
11.B.a
Packet Pg. 269 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description
FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
EXPENDITURE BUDGET ADJUSTMENTS
Airport Fund Public Works $ 226 $ 700
Beach Fund Public Works $ 5,322 $ 16,533
Cemetery Fund Public Works $ 564 $ 1,750
Police Dept $ 16 $ 48
Public Works $ 904 $ 2,808
Resource Recovery & Recycling Fund Public Works $ 44,616 $ 138,582
Risk Management
Administration Finance $ 22 $ 68
Vehicle Management
Fund Public Works $ 88,206 $ 273,976
Wastewater Fund Public Works $ 2,354 $ 7,312
Water Fund Public Works $ 3,937 $ 12,228
Community
Development $ 183,859 $ 183,859
Recreation and Arts $ 5,710 $ 5,710
Pier Fund Community
Development $ 10,431 $ 10,431
Transportation $ (522,327)
Capital Improvement $ 522,327
Transportation $ (67,673)
Capital Improvement $ 67,673
Public Works $ 375,161
Capital Improvement $ 4,025,703 $ 602,751
Public Works $ 375,161
Capital Improvement $ 4,025,703 $ 602,751
Clean Beaches/Ocean
Parcel Tax Fund Non-Departmental $ 370,430 $ (218,664)
Wastewater Fund Non-Departmental $ (370,430) $ 218,664
Pier Fund
This adjustment reflects the department's contribution to the Vehicle Management Fund associated with adding
1.0 FTE Sr Mechanic and 1.0 FTE Mechanic I to provide
maintenance on the City's Vehicle.
This adjustment reflects increased contributions to the General Fund to support the growing costs of parking
operations due to increased usage of the Beach and Pier
lots, resulting in higher costs in labor, liability insurance,
and repairs/replacements from both regular maintenance
and vandalisms of parking facilities and equipment.
This adjustment reflects the transfer of the Caltrans grant
and local match Transportation Impact Fee (TIF) funds
from operating to the Capital Improvement Program
budget for the Santa Monica Boulevard Safety
Enhancement study.
Miscellaneous Grants
Fund
Special Revenue
Source Fund
Beach Fund
Resource Recovery &
Recycling Fund
Vehicle Management
Fund
Reflects the accounting transactions required for the
purchase and ongoing replacement cost of (6) new Resource Recovery and Recycling vehicles. The
transactions include contributions from the RRR fund to
the Vehicle Management Fund as well as ongoing
maintenance of the vehicles.
This adjustment reflects the actual repayment schedule
determined by the State Water Resources Control Board,
which was post development of FY 2023-25 Biennial
Budget.
Page A-12 of 14
11.B.a
Packet Pg. 270 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description
FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
EXPENDITURE BUDGET ADJUSTMENTS
Airport Fund Non-Departmental
This adjustment reflects the addition of 1.0 FTE Project
Support Assistant (limited term thru 12.31.2028) funded
by the Airport Fund.
$ 46,946 $ 116,763
Housing Authority Fund Housing and Human
Services
This adjustment reflects lower HAP voucher utilization
primarily due to a delay in the lease-up of 57 project
based units at 1413 Michigan Avenue as well as lower
voucher utilization due to a longer lease-up period on the
Emergency Housing Voucher and Serial Inebriate
Programs.
$ (1,670,716) $ (299,506)
Miscellaneous Grants
Fund City Manager
This adjustment reflects the award of a new grant from the U.S. Department of Homeland Security, Federal
Emergency Management Agency (FEMA) Hazard
Mitigation Grant Program (HMGP) through the State of
California, Governor’s Office of Emergency Services
(CalOES) to support the preparations of the Local Hazard
Mitigation Plan.
$ 135,000
Miscellaneous Grants
Fund
Housing and Human
Services
This adjustment reflects the acceptance of a new Local
Aging and Disability Action Planning (LADAP) Grant to
retain a consultant to develop a strategic plan that will address the needs of older adults and people with
disabilities living in Santa Monica.
$ 200,000
Miscellaneous Grants
Fund Police Dept
This Adjustment reflects an additional grant award
amount from the California Office of Traffic Safety for the
2023 STEP (Selective Traffic Enforcement Program)
Grant for education and special enforcement efforts to help prevent traffic-related deaths and injuries.
$ 31,600
Special Revenue
Source Fund Non-Departmental
This adjustment reflects the Tenant Protections and a
Right to Counsel program as part of the City's Homeless Prevention Strategy, funded by the Housing Trust Fund $ 93,125
Special Revenue Source Fund Non-Departmental
This adjustment reflects the purchase of BMH Software
Portal Enhancement for Tenants and Landlords, funded
by the Housing Trust Fund.
$ 95,500
Page A-13 of 14
11.B.a
Packet Pg. 271 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT A
Fund Department(s)Description
FY 2023-24
Increase /
(Decrease)
FY 2024-25
Increase /
(Decrease)
DETAIL OF ALL FY 2023-24 AND FY 2024-25 PROPOSED BUDGET CHANGES
EXPENDITURE BUDGET ADJUSTMENTS
Special Revenue
Source Fund Non-Departmental
Reflects adjustment to the Measure GSH affordable
housing transfer corresponding with lower than projected
Transaction and Use Tax (TUT) revenue. The TUT revenue budget is also being reduced.
$ 8,750 $ 34,250
Total Other Funds Expenditure Changes $ 8,428,449 $ 4,347,689
FY 2023-24 FY 2024-25
total fund Airport Fund $ 119,781 $ 199,972
total fund Beach Fund $ 256,497 $ 274,888
total fund Big Blue Bus Fund $ 371,378 $ 1,081,562
total fund Cemetery Fund $ 23,185 $ 27,247
total fund Clean Beaches/Ocean Parcel Tax Fund $ 370,430 $ (218,664)
total fund Housing Authority Fund $ (1,670,716) $ (299,506)
total fund Miscellaneous Grants Fund $ 366,600 $ -
total fund Pier Fund $ 139,449 $ 157,236
total fund Resource Recovery & Recycling Fund $ 4,192,456 $ 1,251,743
total fund Risk Management Administration $ 12,014 $ 13,351
total fund Special Revenue Source Fund $ 197,375 $ 34,250
total fund Vehicle Management Fund $ 4,154,037 $ 1,297,306
total fund Wastewater Fund $ (219,476) $ 390,867
total fund Water Fund $ 115,439 $ 137,437
$ 8,428,449 $ 4,347,689
General Fund Operating $ 1,848 $ 4,450,300
Other Funds Operating $ (212,957) $ 3,142,187
total fund Total Operating Changes all Funds $ (211,109) $ 7,592,487
General Fund Capital $ - $ -
Other Funds Capital $ 8,641,406 $ 1,205,502
Total Capital Changes all Funds $ 8,641,406 $ 1,205,502
$ 8,430,297 $ 8,797,989
Grand Total Other Funds Operating and Capital Expenditure Changes
Other Funds Expenditure Changes by Fund
Total Expenditure Changes all Funds
Page A-14 of 14
11.B.a
Packet Pg. 272 Attachment: Attachment A - Budget Adjustments [Revision 3] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT B
City Council Meeting: February 27, 2024 Santa Monica, California
RESOLUTION NUMBER ________(CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ESTABLISHING NEW CLASSIFICATIONS AND ADOPTING SALARY RATES FOR
THE FOLLOWING NEW OR EXISTING CLASSIFICATIONS: ASSISTANT CITY
MANAGER, CHIEF OFFICE ADMINISTRATOR-CAO, COMPUTER AIDED DISPATCH
ADMINISTRATOR, COMMUNITY BROADBAND ADMINISTRATOR, DEPUTY CITY
MANAGER, FINANCIAL REPORTING AND SYSTEMS ADMINISTRATOR,
MAINTENANCE ASSISTANT, PAYROLL ADMINISTRATOR, PAYROLL ANALYST I,
PAYROLL ANALYST II, AND PRINCIPAL INFORMATION SECURITY ANALYST.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
SECTION 1. The following salary levels are hereby established, effective July 2,
2023, for the indicated classification:
Classification Salary Reason
Maintenance Assistant $54,804/annual; Step 5 Equity adjustment
SECTION 2. The following salary levels are hereby established, effective March
10, 2024, for the indicated classifications:
Classification Salary Reason
Assistant City Manager $348,936/annual; Step 5 Equity adjustment
Chief Office Administrator-CAO $191,100/annual; Step 5 New classification
Computer Aided Dispatch
Administrator
$133,620/annual; Step 5 New classification*
Community Broadband
Administrator
$159,360/annual; Step 5 Equity adjustment
Deputy City Manager $273,576/annual; Step 5 Equity adjustment
Financial Reporting and Systems
Administrator
$147,300 annual; Step 5 New classification*
Payroll Administrator $138,420/annual; Step 5 New classification*
Payroll Analyst I $104,040/annual; Step 5 New classification*
Payroll Analyst II $125,796/annual; Step 5 Title change; no change
in salary*
11.B.b
Packet Pg. 273 Attachment: Attachment B - Salary Resolution [Revision 1] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
ATTACHMENT B
Classification Salary Reason
Principal Information Security
Analyst
$163,068/annual: Step 5 New classification*
* Subject to the approval of the Personnel Board
SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
Douglas Sloan
City Attorney
11.B.b
Packet Pg. 274 Attachment: Attachment B - Salary Resolution [Revision 1] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
POSITION AND CLASSIFICATION CHANGES
ATTACHMENT C
FUND DEPT FTE POSITION TITLE FUND DEPT FTE POSITION TITLE
01 CMO 1.0 Computer-Aided Dispatch (CAD) Administrator 1, 2 Add 1.0 Results in net zero impact to the General Fund
01 CMO 1.0 Administrative Analyst Delete (1.0) Results in net zero impact to the General Fund
01 CMO 1.0 Production Coordinator 01 CMO 1.0 Production Supervisor 1 Add/Delete - Results in net zero impact to the General Fund
01 CAO 1.0 Office Administrator 01 CAO 1.0 Chief Office Administrator-CAO 1, 2 Add/Delete - Results in net zero impact to the General Fund
01 CDD 2.0 Combination Building Inspector II Add 2.0 Funded by revenue from increased inspections
01 Finance 1.0 Fiscal Staff Assistant II 01 Finance 1.0 Fiscal Staff Assistant III 1 Add/Delete - Results in net zero impact to the General Fund
01 Finance 1.0 Financial Systems/Payroll Administrator 01 Finance 1.0 Financial Reporting and Systems Administrator 1, 2 Add/Delete - Results in net zero impact to the General Fund
01 Finance 1.0 Payroll Administrator 1, 2 Add 1.0 Results in net zero impact to the General Fund
01 Finance 1.0 Payroll Analyst Delete (1.0) Results in net zero impact to the General Fund
01 Finance 2.0 Payroll Analyst 01 Finance 2.0 Payroll Analyst II 1, 2 Title Change - Results in net zero impact to the General Fund
01 Finance 1.0 Administrative Analyst 01 Finance 1.0 Payroll Analyst I 1, 2 Add/Delete - Results in net zero impact to the General Fund
01 Finance 1.0 Senior Administrative Analyst 01 Finance 1.0 Principal Administrative Analyst 1 Add/Delete - Results in net zero impact to the General Fund
01 Finance 1.0 Supervising Accountant 01 Finance 1.0 Senior Accountant 1 Add/Delete - Results in net zero impact to the General Fund
01 HR 1.0 Deputy Director - Special Projects 01 HR 1.0 Administrative Services Officer 1 Add/Delete - Results in net zero impact to the General Fund
01 HR 1.0 Human Resources Technician 01 HR 1.0 Human Resources Analyst 1 Add/Delete - Results in net zero impact to the General Fund
01 ISD 1.0 Community Broadband Manager Delete (1.0) Results in net zero impact to the General Fund
01 ISD 1.0 Business Process Technology Analyst 1 Add 1.0 Results in net zero impact to the General Fund
01 ISD 1.0 GIS Technician 1 Add 1.0 Results in net zero impact to the General Fund
01 ISD 1.0 Information Security Analyst 01 ISD 1.0 Principal Information Security Analyst 1, 2 Add/Delete - Results in net zero impact to the General Fund.
01 ISD 1.0 Principal Network Engineer 01 ISD 1.0 Community Broadband Administrator 1, 2 Add/Delete - Results in net zero impact to the General Fund.
01 Library 1.0 Library Literacy Program Assistant 01 Library 1.0 Library Program Specialist - Literacy Services 1 Add/Delete - Results in net zero impact to the General Fund
01 PW 1.0 Project Support Assistant (limited-term) 3 Add 1.0
Airport Fund would reimburse the General Fund for
the cost of services provided.
DELETE ADD
REASON NET FTE
CHANGE NET IMPACT
February 27, 2024
11.B.c
Packet Pg. 275 Attachment: Attachment C - Position and Classification Changes (6034 : Financial Status Update and FY
POSITION AND CLASSIFICATION CHANGES
ATTACHMENT C
FUND DEPT FTE POSITION TITLE FUND DEPT FTE POSITION TITLE
DELETE ADD
REASON NET FTE
CHANGE NET IMPACT
70 PW 1.0 Mechanic I/II 4 Add 1.0
Cost recovery from charge backs to departments
and Funds for the actual services provided.
70 PW 1.0 Senior Mechanic 4 Add 1.0
Cost recovery from charge backs to departments
and Funds for the actual services provided.
01 DOT 1.0 Transportation Planning Associate 01 DOT 1.0 Senior Administrative Analyst 1 Add/Delete - Results in net zero impact to the General Fund
01 RAD 1.0 Cultural Affairs Supervisor 1, 5 Add 1.0 Results in net zero impact to the General Fund
01 RAD 1.0 Community Services Program Supervisor 1, 5 Add 1.0 Results in net zero impact to the General Fund
01 RAD 0.7 Cultural Affairs Supervisor 01 RAD 1.0 Cultural Affairs Supervisor 1, 5 Add 0.3 Results in net zero impact to the General Fund
01 RAD 1.0 Guest Services Assistant 1, 5 Add 1.0
Funded by revenue from increased field permits
issued and repurposing existing staff resources
PERMANENT EMPLOYEES TOTAL 9.3 FTE
01 RAD 3.5 Swim Instructor/Pool Lifeguard 6 Delete (3.5) Results in net zero impact to the General Fund
01 RAD 0.3 Chief Pool Lifeguard 6 Delete (0.3) Results in net zero impact to the General Fund
01 RAD 3.6 Facilities Attendant Delete (3.6) Results in net zero impact to the General Fund
01 RAD 0.6 CCS Leader Delete (0.6) Results in net zero impact to the General Fund
TEMPORARY EMPLOYEES TOTAL -8.0 FTE
GRAND TOTAL 1.3 FTE
1 Cost of the position change will be offset by the reallocation of budgeted funds within department budgets, resulting in a net zero impact to the budget for FY 2023-25.
2 Subject to Personnel Board approval.
3 Limited-term ending December 31, 2028.
4 Costs related to the positions are charged back to departments and funds based on the actual services provided.
6 The as-needed staff time is being corrected to align with actual demand for the afterhours swim program, which has stabilized at a much lower level than originally anticipated.
5 Cost of the positions in Recreation & Arts will be offset by repurposing existing temporary staff resources within the department.
February 27, 2024
11.B.c
Packet Pg. 276 Attachment: Attachment C - Position and Classification Changes (6034 : Financial Status Update and FY
ATTACHMENT D
1
City Council Meeting: February 27, 2024 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ABOLISHING POSITIONS FROM THE CLASSIFICATION PLAN
WHEREAS, in accordance with the City of Santa Monica City Charter section
1109, whenever it becomes necessary, in the opinion of the City Council, positions may
be abolished; and
WHEREAS, the abolishment of positions allows for the proper preparation and
maintenance of the classification plan for the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The job classifications set forth in Exhibit A of this Resolution are
hereby abolished, effective March 10, 2024.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney
11.B.d
Packet Pg. 277 Attachment: Attachment D - Abolishment Resolution (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
CLASSIFICATIONS
EXHIBIT A
Accountant - Collections
Accounting Manager
Administrative Aide
Administrative Analyst - Engineering
Administrative Analyst - Homeless Services
Administrative Analyst - Information Systems
Administrative Analyst - Library Administrative Services
Administrative Analyst - Library Fiscal Services Coordinator
Administrative Assistant - City Manager's Office
Administrative Intern II
Administrative Project Manager
Administrative Staff Assistant - Environmental Programs
Airport and Real Estate Director
Airport Gse Mechanic
Airport Guest Service Representative
Airport Line Service Crew Leader
Airport Line Service Supervisor
Airport Line Service Worker
Airport Noise/Operations Specialist
Assistant Chief Information Officer
Assistant Community Broadband Analyst
Assistant Director of Finance
Assistant Fire Marshal - Hazardous Materials
Assistant Police Chief As-Needed
Audio for Video Operator
Bikeshare Coordinator
Billing and Collections Administrator
Broadband Program Administrator
Cable TV Manager
Chief Administrative Officer
Chief Civic Wellbeing Officer
Chief Data Officer
Chief Performance Officer
City Hall Receptionist
City Planning Staff Assistant
City Urban Designer
Civil Engineer - Special Projects As-Needed
Communications Operator - Fire/Lateral Transfer
Communications Operator - Lateral Transfer
Communications and Public Affairs Officer
Community Broadband Analyst
11.B.d
Packet Pg. 278 Attachment: Attachment D - Abolishment Resolution (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
CLASSIFICATIONS
EXHIBIT A
Community Engagement Coordinator
Community Services Program Supervisor - Community Sports Programs
Community Services Program Supervisor - Therapeutic Recreation and Community Sports
Programs
Computer Support Specialist
Computer Support Technician I
Computer Support Technician II
Construction Specialist
Council Office Coordinator
CUPA/Environmental Coordinator
Data Officer
Data Science Administrator
Director of Special Projects for Information Services
Emergency Services Manager
Employee Benefits Technician
Environmental Compliance Specialist
Environmental Programs Analyst - Hazardous Materials Management
Facilities Maintenance Contracts Administrator
Fbo Manager
Financial Reporting Supervisor
Financial Systems Analyst
Fiscal Staff Assistant I
Fiscal Support Assistant
Fleet Maintenance Administrator
Forensic Artist As-Needed
Graphic Design Assistant
Hearings Coordinator
Human Resources Assistant
Human Resources Specialist
Infrastructure and Cloud Services Administrator
Internal Audit Manager
Internet Systems Analyst
Irrigation Crew Leader
Lead Crime Prevention Coordinator
Lead Systems Analyst
Lead Systems Analyst - ERP
Lead Systems Analyst - Public Safety
Lead Systems Analyst - Water Resources
Lead Systems Analyst - Permitting Systems
Librarian III
Librarian III - Branch Services
Librarian III - Information Management
11.B.d
Packet Pg. 279 Attachment: Attachment D - Abolishment Resolution (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
CLASSIFICATIONS
EXHIBIT A
Librarian III - Reference Services
Librarian III - Youth Services
Management Fellow
Marketing/Communications Assistant
Neighborhood Preservation Coordinator
Office Manager to the City Manager
Organizational Development and Training Administrator
Organizational Development and Training Coordinator
Permit Specialist
Pier Manager
Pipe Fitter
Plans Examiner I - Electrical
Plans Examiner II - Electrical
Plans Examiner III - Electrical
Police Range Master
Police Safety Dive Instructor As-Needed
Police Services Assistant
Police Services Management Supervisor
Policy Development Officer As-Needed
Principal Administrative Analyst - Fire
Principal Administrative Analyst - Information Systems
Principal Design Planner
Principal Librarian
Principal Planning and Community Development Analyst
Principal Public Works Analyst
Principal Sustainability Analyst
Principal Treasury Analyst
Principal Urban Designer
Procurement Supervisor
Project Manager
Project Manager - Wellbeing Project
Project Portfolio Coordinator
Public Information Coordinator
Public Safety Dispatcher - Lateral Transfer
Public Works Utility Inspector
Purchasing Services Manager
Records Management Assistant
Reprographics Specialist I
Revenue and Collections Manager
Revenue Collections Supervisor
Revenue Operations Assistant I
11.B.d
Packet Pg. 280 Attachment: Attachment D - Abolishment Resolution (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
CLASSIFICATIONS
EXHIBIT A
Revenue Operations Assistant II
Social Worker I
Software Systems Analyst - ERP
Software Systems Analyst - Permitting Systems
Software Systems Analyst - Water Resources
Software Systems Manager
Special Counsel/Chief of Staff
Special Projects Administrator - Planning and Community Development
Special Projects Engineer
Senior Administrative Analyst - Architecture
Senior Administrative Analyst - Child and Family Resources
Senior Administrative Analyst - Homeless Services
Senior Administrative Analyst - Human Services/Fiscal
Senior Administrative Analyst - Open Space Management
Senior Administrative Analyst - Parks and Community Facility Planning
Senior Advisor to the City Manager On Airport Affairs
Senior Advisor to the City Manager On Homelessness
Senior Deputy City Clerk
Senior Drafting Technician
Senior Human Services Program Analyst
Senior Marketing Manager
Senior Procurement Analyst
Senior Revenue Operations Assistant
Staff Assistant I
Successor Agency Administrator
Support Services Manager
Sustainability Manager
Sustainable Building Advisor
Sustainable Energy Engineer
Sustainable Procurement Advisor
Systems and Network Manager
Systems Administrator/Programmer Analyst
Systems Administrator
Systems Analyst - Permitting System
Systems Analyst - Public Safety
Systems Analyst - Share Point
Systems Analyst - Transit Systems
Technical Staff Assistant
Technology Project Manager
Traffic and Parking Manager
Tree Trimmer
11.B.d
Packet Pg. 281 Attachment: Attachment D - Abolishment Resolution (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
CLASSIFICATIONS
EXHIBIT A
Urban Designer
Urban Forest Contract Supervisor
Urban Forester Administrator
Veterinarian
Video Camera Operator
Video Engineer
Video Intern
Video Non-Linear Editor
Video On-Line Editor I
Video On-Line Editor II
Video Student Intern
Video Technician I
Video Technician II
Water Construction Crew Leader
Water Resources Crew Leader
Water Resources Program Administrator
Water Supervisor- Construction
Water Supervisor- Meters
Water Systems Equipment Operator
Workers' Compensation Administrator
Workers' Compensation Claims Technician
Youth and Family Services Support Coordinator
11.B.d
Packet Pg. 282 Attachment: Attachment D - Abolishment Resolution (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
1
David Yakobson
From:Ellis Raskin <ellis.raskin@gmail.com>
Sent:Tuesday, February 27, 2024 11:39 AM
To:councilmtgitems
Subject:Agenda Item 11-B
Follow Up Flag:Follow up
Flag Status:Flagged
EXTERNAL
Dear Hon. Councilmembers:
I am writing to join in the insightful comments submitted by the Community for Excellent Public Schools. I will not repeat
or reiterate those comments here, but it bears emphasis that our city has a long and proud history of supporting our
schools through the Master Facilities Use Agreement, and we should not reverse course.
If we truly care about our students’ future success, we must continue to make meaningful material contributions to
educational success through the Master Facilities Use Agreement.
Best,
Ellis Raskin
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 283 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
2
David Yakobson
From:Soloff, Michael <Mike.Soloff@mto.com>
Sent:Tuesday, February 27, 2024 10:52 AM
To:Gleam Davis; Caroline Torosis; Jesse Zwick; Phil Brock; Oscar de la Torre; Lana Negrete;
christine.para@santamonica.gov; councilmtgitems
Cc:'sue.himmelrich@gmail.com'; Jon Katz; SM Renters Rights
Subject:RE: Michael Soloff et al. Comments on Item 11-B on City Council Agenda for 2.27.24
Meeting
Attachments:Mike Soloff Letter to Council on Item 11-B on City Council 2.27.24 Agenda.pdf
Follow Up Flag:Follow up
Flag Status:Flagged
EXTERNAL
Please find attached my comments on Item 11-B on tonight’s agenda. Fellow 2022 Measure GS official proponents Sue
Himmelrich and Jon Katz, as well as the SMRR Executive Committee, join in these comments.
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 284 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
February 27, 2024
To: Santa Monica City Council
Re: Item 11-B on 2/27/24 Agenda: Financial Status Update and FY 2023-24 Midyear Budget
Dear Councilmembers:
I am writing in both my individual capacity as an official proponent of 2022 Measure GS, and in my capacity as co-chair of Santa Monicans for Renters’ Rights. I am authorized to advise you that the other official proponents of 2022 Measure GS (Sue Himmelrich and Jon Katz), my SMRR Co-Chair (Denny Zane), and the entire SMRR Executive Committee concur in the views expressed below.
Each Member Of The City Council Should Commit Tonight To Extending The Master Facilities Use Agreement Funding To SMMUSD (Or To Any Santa Monica-Only Successor District) Past 2027
The Staff Report for Item 11-B provides five year revenue and expenditure projections under both the assumption that the City’s Master Facilities Use Agreement with SMMUSD (“the Agreement”) is not renewed when it expires in 2027, and on the assumption it is renewed.
It is essential that each member of the City Council commit tonight to extending the funding provided to SMMUSD pursuant the Agreement past its expiration in 2027.
First, a failure to maintain the transfer of City funds to SMMUSD (or to any successor Santa
Monica-only district) would violate Santa Monica Municipal Code Subsection 4.90.20(c), which was adopted by the voters as part of 2022 Measure GS. That subsection provides:
In enacting this Initiative, it is the intent of the voters that any funds allocated to the SMMUSD or any future school district pursuant to this Section should be additional
to, and not a replacement of, any funds the City otherwise provides to the school district, including any funds provided according to existing agreements or in accordance with prior advisory measures regarding City funding for public education.
As the plain language of this subsection demonstrates, it was the intent of the proponents and the will of the voters that all existing transfers to the schools continue after the passage of 2022 Measure GS—not just those pursuant to prior voter advisory measures—and that 2022 Measure GS funding for the schools constitute an increase in those transfers. That intent and will is not advisory—it is part of the Municipal Code and cannot be changed except by the voters. See Santa Monica
Municipal Code Section 4.90.060 (“The provisions of this Chapter 4.90 may not be amended absent a vote of the people of the City of Santa Monica.”).
Second, the withdrawal of existing City funding for our schools pursuant to the Agreement would
constitute terrible public policy.
The importance of quality public education to both our community’s children and to our community as a whole should be self-evident. Indeed, public education is so important that the founders of
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 285 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
California placed a guarantee of free public education into the State Constitution, and the California Supreme Court has decreed that this is a fundamental right entitled to special legal protection. The
voters of our community have repeatedly expressed their willingness to increase taxes to support our schools, and our schools have consistently been ranked as among the best in the State and the Nation. The quality of our public schools has been transformative for many of our community’s children and—while work clearly remains to be done to close the achievement gap—reducing funding for the schools will not help and likely will hurt efforts to close that gap. Preparing our community’s
children to be productive members of society benefits the entire community, and the quality of our schools undoubtedly is one of the factors supporting the high property values that in turn support the property tax revenues on which our City depends.
In 2022, the five members of the current Council who then served on the Council all voted to put Measure DT on the ballot, which provided no additional funding for the schools and increased funding to restore City services. Only 34% of the voters supported Measure DT, while 53.5% voted for Measure GS. The voters are entitled to know whether this Council intends to respect the will of
the voters, or instead intends to try to subvert that will. And the voters are entitled to know each
Councilmember’s intentions right now, in advance of the 2024 and 2026 elections that will take place before the Agreement expires, so they can assure a Council is in place in 2027 that will respect the voters will. Please vote tonight to commit to maintaining the current levels of City funding for our schools pursuant to all existing agreements, including the Agreement.
The City Council Should Ask Staff To Provide Updated Projections On When The City’s Housing Trust Fund Will Receive The Promised Repayment Of Diverted Funds
2022 Measure GS also requires the City to repay the funds diverted from the Housing Trust Fund. Pursuant to that Measure, Santa Monica Municipal Code Subsection 4.90.030(c) provides:
In enacting this Initiative, it is the intent of the voters that any funds allocated to the Homelessness Prevention and Affordable Housing Fund should be additional to, and
not a replacement of, any funds the City otherwise provides for the purposes described above, including any funds provided in accordance with prior advisory measures regarding City funding for affordable housing.
Subsequent to the voters’ adoption of this provision of the Municipal Code, this Council authorized the City to take funds from the Housing Trust Fund to pay a settlement of Euler claims against the City—and to postpone a promised repayment of funds diverted from the Housing Trust Fund at the beginning of the Pandemic—pursuant to a promise to repay those funds in a timely manner. In October 2023 the Council adopted the Staff’s proposal of how to effectuate that repayment promise.
The Staff Report for this budget item provides no report of whether any of these diverted funds have been repaid to date, nor any projections of when they will be repaid. We request that Council direct Staff to provide this information. It is essential to monitor the repayment plan to make certain it will
fulfill this Council’s promise and the City’s obligation under 2022 Measure GS to repay the diverted Housing Trust Fund monies.
Sincerely,
Michael Soloff
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 286 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
3
David Yakobson
From:Kelly Wine <kwine333@yahoo.com>
Sent:Tuesday, February 27, 2024 9:34 AM
To:councilmtgitems
Subject:Agenda Item - 11.B, Attachment B
EXTERNAL
Dear City Council Members,
I am writing to convince the Santa Monica City Council to vote NO on the enormous salary increases
being put forward in tonights agenda (Section 11.B, Attachement B) for the Assistant City Manager,
Deputy City Manager, and Community Broadband Administrator.
The early years of the Pandemic led to sweeping cuts of hundreds of jobs for permanent and part-
time city employees and the shuttering of many city funded public services (such as library
services). Many of these services have not returned in full. Many of the permanent and part-time
employees of Santa Monica have not had their jobs reinstated due to city budget issues. Yet, citizens
of Santa Monica still fund these services and jobs with their tax dollars and reap nothing in return.
There are other items I would like the City Council Members to consider.
The former Santa Monica City Manager (Rick Cole), resigned in 2020 during the difficult early days of
the Pandemic. The City Council approved a 7 month severance package upon his resignation
amounting to approximately $200,000.00.
The City of Santa Monica has paid out approximately $230 million to resolve child molestation
lawsuits brought against Eric Uller who volunteered for the city's Police Activities League (PAL). This
was after numerous warning signs and Eric Uller's inappropriate behavior with children being reported
by officers to higher ranking Santa Monica Police personnel.
I implore that NO salary increases be agreed to by the Santa Monica City Council until ALL city
funded services cut during Covid are returned in full, and all full and part-time city employees whose
jobs were cut are reinstated to their original position.
When the City of Santa Monica can get their "house in order" and fix what they poorly managed
during the Pandemic, only then should pay increases of this magnitude be considered appropriate.
Thank you.
Mr. Kelly Wine
Santa Monica Resident for 23 years
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 287 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
1
David Yakobson
From:Sidney Baker <sidneybaker414@aol.com>
Sent:Monday, February 26, 2024 6:44 PM
To:councilmtgitems
Subject:Re: Council Meeting February 27, 2024, Item 11. B., PUBLIC COMMENT
EXTERNAL
I have been told that Gleam Davis will NOT term out this year. I looked at her years of service on the Council and the
Charter, and if I made a mistake I sincerely apologize.
Sent from the all new AOL app for iOS
On Monday, February 26, 2024, 1:36 PM, Sidney Baker <sidneybaker414@aol.com> wrote:
SPRINGTIME IN VIENNA FOR COUNCIL MEMBER GLEAM DAVIS AT
TAXPAYER EXPENSE
Gleam Davis will term out on the City Council this year. Why are Santa Monica
taxpayers paying to send a lame duck Council Member to Vienna, Austria for a week in
April for a housing conference?
____ Nobody else could go? But the City is already sending Council Member Torosis.
Is Caroline’s attendance not adequate? Why are two people from the City, neither of
whom is employed in city planning or housing, jetting off to Vienna at taxpayer expense
for a housing conference? Anyone notice all the new residential housing currently being
constructed in Santa Monica without sending City Council Members abroad to study
how to do it?
____ Because Santa Monica has excess funds? The City has unfunded pension
liabilities in the hundreds of millions of dollars. The City will be further tapping into its
declining reserves and reducing expenditures on important social programs to balance
its operating budget. Crime and homelessness far from under control. Important City
programs are not adequately funded.The City is paying $229.8 million to settle a lawsuit
for sexual abuse by one of its employees. The City can’t even afford to control the
hundreds of ground squirrels running wild at Palisades Park. Gleam’s trip to Vienna is
so important that it justifies diverting funds away from other City programs?
____ Because Gleam can’t afford to pay her own way? Gleam is a wealthy Harvard
Law School graduate employed as senior counsel for AT&T. Her husband is a wealthy
consultant. Public records show they sold the home, a short walk from the Brentwood
Mart, for a whopping $8,315,000, which they purchased in 2019 for $3,500,000. Do the
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 288 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
2
math. How many of you can even afford a home? Or a trip to Vienna? Many of you live
paycheck to paycheck and have to pay for Gleam’s European international travel?
____ Because Gleam made a successful motion to reimburse her expenses?
Gleam is no stranger to conflicts of interest. She thought it appropriate to vote on a
project at the Miramar Hotel on which her husband was employed and Gleam would
profit. She did not want to recuse herself despite knowing she had a personal financial
interest in the project, even after her secret became public. It took the California Fair
Political Practices Commission in a letter to Gleam, the experienced lawyer, in October
2020 to school her on how her participation in votes because of her personal financial
conflict of interest would violate the law.
(https://www.fppc.ca.gov/content/dam/fppc/documents/advice-letters/1995-
2015/2020/Final A-20-117.pdf. The Santa Monica City Attorney, also reached the wrong
conclusion. Could it be because their employment and compensation are determined by
Gleam and the City Council?) Gleam (and Caroline) had a financial conflict of interest
and should have recused themselves on a vote to send themselves on an expensive
European escapade. Was this legal (don’t ask the City Attorney)?
____ Because the City Council approved Gleam’s motion? None of the other
Council Members can explain why it is an appropriate expense to send even one
Council Member - Caroline Torosis - over 6,000 miles to a housing conference in a
socialist foreign country with very high taxes that can pay for superior public housing
policies. Or why Gleam’s attendance will in any way supplement Caroline’s participation
at the same conference or contribute in any way to local housing policies in her short
time remaining on the Council. (Look at all the housing currently being built locally
without lessons from Vienna.) Especially when there are highly educated and
experienced housing experts at nearby world class universities, in federal, state and
local government, in private firms, and in Santa Monica’s own planning and housing
departments.
2024
____ Will the City Council cancel Gleam’s trip? We all make mistakes. Many can be
forgiven if acknowledged and steps taken to correct them. The City Council approved
Gleam’s trip only two weeks ago. They are reviewing the budget now. They can change
their mind and cancel Gleam’s trip to Vienna if not Caroline’s too. Why when reviewing
the budget won’t at least one Council Member show some spine and integrity and make
a motion to cancel the expenditure? Could it be that Council Members have lost all
idealism of their youth and are cynically looking forward to benefitting financially from
similar trips to European capitals and other unwarranted expenditures of taxpayer funds
in the future?
__X__ NONE OF THE ABOVE.
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
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3
David Yakobson
From:Edith Karmes <edithkarmes@aol.com>
Sent:Monday, February 26, 2024 5:48 PM
To:councilmtgitems
Subject:Public Comment, Item 11B, 2/27/2024 City Council Mtg.
EXTERNAL
You have to be kidding me with a European trip for 2 council members at public expense. I incorporate the following
article in my comment - please post the article in full. Thank you.
https://www.smobserved.com/story/2024/02/26/opinion/springtime-in-vienna-for-council-member-gleam-davis-at-
taxpayer-expense/8132.html
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
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1
David Yakobson
From:Ann Bowman
Sent:Monday, February 26, 2024 4:10 PM
To:councilmtgitems; Phil Brock; Lana Negrete; Christine Parra; Oscar de la Torre; Gleam
Davis; Caroline Torosis; Jesse Zwick
Cc:David White; Susan Cline
Subject:February 27, 2024 Council Meeting - Item 11.B. (Midyear Budget) - SUPPORT Recreation
and Arts Department Restorations
Follow Up Flag:Follow up
Flag Status:Flagged
Dear Mayor Brock and Esteemed Councilmembers:
I write in full and enthusiastic support for Staff's recommendation to you of position restorations within
the City's Recreation and Arts Department (RAD). The entire Community and Cultural Services (CCS)
Department was eliminated during COVID budget cutting and I am so heartened to see that now, in
addition to the rebirth of CCS as RAD, the City is serious about continuing to rebuild the breadth and
scope of services to what the community once enjoyed.
Thank you in advance for your support of these important position restorations!
Sincerely,
Ann Bowman
Recreation and Parks Commissioner
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 291 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
2
David Yakobson
From:Sidney Baker <sidneybaker414@aol.com>
Sent:Monday, February 26, 2024 3:37 PM
To:councilmtgitems
Subject:Council Meeting February 27, 2024, Item 11. B., PUBLIC COMMENT
Follow Up Flag:Follow up
Flag Status:Flagged
EXTERNAL
SPRINGTIME IN VIENNA FOR COUNCIL MEMBER GLEAM DAVIS AT TAXPAYER
EXPENSE
Gleam Davis will term out on the City Council this year. Why are Santa Monica taxpayers paying to
send a lame duck Council Member to Vienna, Austria for a week in April for a housing conference?
____ Nobody else could go? But the City is already sending Council Member Torosis. Is Caroline’s
attendance not adequate? Why are two people from the City, neither of whom is employed in city
planning or housing, jetting off to Vienna at taxpayer expense for a housing conference? Anyone
notice all the new residential housing currently being constructed in Santa Monica without sending
City Council Members abroad to study how to do it?
____ Because Santa Monica has excess funds? The City has unfunded pension liabilities in the
hundreds of millions of dollars. The City will be further tapping into its declining reserves and reducing
expenditures on important social programs to balance its operating budget. Crime and homelessness
far from under control. Important City programs are not adequately funded.The City is paying $229.8
million to settle a lawsuit for sexual abuse by one of its employees. The City can’t even afford to
control the hundreds of ground squirrels running wild at Palisades Park. Gleam’s trip to Vienna is so
important that it justifies diverting funds away from other City programs?
____ Because Gleam can’t afford to pay her own way? Gleam is a wealthy Harvard Law School
graduate employed as senior counsel for AT&T. Her husband is a wealthy consultant. Public records
show they sold the home, a short walk from the Brentwood Mart, for a whopping $8,315,000, which
they purchased in 2019 for $3,500,000. Do the math. How many of you can even afford a home? Or a
trip to Vienna? Many of you live paycheck to paycheck and have to pay for Gleam’s European
international travel?
____ Because Gleam made a successful motion to reimburse her expenses? Gleam is no
stranger to conflicts of interest. She thought it appropriate to vote on a project at the Miramar Hotel on
which her husband was employed and Gleam would profit. She did not want to recuse herself despite
knowing she had a personal financial interest in the project, even after her secret became public. It
took the California Fair Political Practices Commission in a letter to Gleam, the experienced lawyer, in
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 292 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
3
October 2020 to school her on how her participation in votes because of her personal financial
conflict of interest would violate the law.
(https://www.fppc.ca.gov/content/dam/fppc/documents/advice-letters/1995-2015/2020/Final A-20-
117.pdf. The Santa Monica City Attorney, also reached the wrong conclusion. Could it be because
their employment and compensation are determined by Gleam and the City Council?) Gleam (and
Caroline) had a financial conflict of interest and should have recused themselves on a vote to send
themselves on an expensive European escapade. Was this legal (don’t ask the City Attorney)?
____ Because the City Council approved Gleam’s motion? None of the other Council Members
can explain why it is an appropriate expense to send even one Council Member - Caroline Torosis -
over 6,000 miles to a housing conference in a socialist foreign country with very high taxes that can
pay for superior public housing policies. Or why Gleam’s attendance will in any way supplement
Caroline’s participation at the same conference or contribute in any way to local housing policies in
her short time remaining on the Council. (Look at all the housing currently being built locally without
lessons from Vienna.) Especially when there are highly educated and experienced housing experts at
nearby world class universities, in federal, state and local government, in private firms, and in Santa
Monica’s own planning and housing departments.
2024
____ Will the City Council cancel Gleam’s trip? We all make mistakes. Many can be forgiven if
acknowledged and steps taken to correct them. The City Council approved Gleam’s trip only two
weeks ago. They are reviewing the budget now. They can change their mind and cancel Gleam’s trip
to Vienna if not Caroline’s too. Why when reviewing the budget won’t at least one Council Member
show some spine and integrity and make a motion to cancel the expenditure? Could it be that Council
Members have lost all idealism of their youth and are cynically looking forward to benefitting
financially from similar trips to European capitals and other unwarranted expenditures of taxpayer
funds in the future?
__X__ NONE OF THE ABOVE.
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 293 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
1
David Yakobson
From:Kevin McKeown <kevin@mckeown.net>
Sent:Saturday, February 24, 2024 12:37 PM
To:councilmtgitems
Cc:Phil Brock; Lana Negrete; Gleam Davis; Caroline Torosis; Christine Parra; Jesse Zwick;
Oscar de la Torre
Subject:11-B -- managing overtime
Follow Up Flag:Follow up
Flag Status:Flagged
EXTERNAL
As you review the budget (item 11-B on your agenda), I hope you can get some informaƟon from staff about police
overƟme. Pages 20 through 22 of the staff report detail general fund changes to numerous departments, but SMPD is
not one of them.
For many years, going back over many Chiefs, the Council has been told that police overƟme was necessary because we
did not have enough police officers. In fact, the case was made that paying overƟme actually saved residents money
because it was cheaper than hiring new personnel with aƩendant training, salaries, and benefits.
We have now added significantly to our police force. While training, salaries, and benefits will impact the general fund, I
see no menƟon of reduced overƟme. If the reason repeatedly given to Council jusƟfying overƟme was valid, there
should now be considerably less need. Can you get staff to clarify this, and how much overƟme money might now be
available for other purposes?
Thanks,
Kevin
————————————
K e v I n M c K e o w n
hƩps://urldefense.com/v3/__hƩp://www.mckeown.net__;!!OfuUnHCITYtmmjM!oNA_X_059FXAAz-
8hMOwvADUlEUFPIDV6kN1aUlH7JrBdwbg27K7h04foICjZ356_J6o-g774JyzV18ucK3LhnDIJD8$
Choose to be conscious
————————————
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 294 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
2
David Yakobson
From:Ted Winterer <tedwinterer@gmail.com>
Sent:Friday, February 23, 2024 12:40 PM
To:Phil Brock; Lana Negrete; Christine Parra; Gleam Davis; Jesse Zwick; Oscar de la Torre;
Caroline Torosis
Cc:councilmtgitems; David White; nicole faries; Shari Davis; Debbie Mulvaney; Chris
Harding; Sirinya Matute; Kean, Jon; Smith, Jennifer; Maria Leon-Vazquez; Alicia Mignano;
Tahvildaran-Jesswein, Richard; Lieberman, Laurie; srouse@smmusd.org; Shelton,
Antonio
Subject:Item 11-B, 2/27/24 Council agenda
Attachments:CEPS Ltr to CC 2024.02.23.pdf
Follow Up Flag:Follow up
Flag Status:Flagged
EXTERNAL
Councilmembers,
We are writing to express our profound concerns about your staff report contemplating the elimination of the Master
Facilities Use Agreement (MFUA) between the City and SMMUSD in 2027.
Community for Excellent Public Schools (CEPS) was founded two decades ago to seek additional funding for our cash-
strapped school district. At that time we gathered 15,000 signatures for a ballot measure to allocate City funds to
SMMUSD. The Council in 2004 chose to negotiate the MFUA agreement, instead of facing the prospect of an
initiative which would have allocated even more funding for our public schools than has been generated by the MFUA.
So we are, of course, profoundly disturbed by a budget projection that contemplates an abrogation of this compact
between the City and its residents.
We are further troubled by the implication in your staff report that the monies from Measure GS which will soon flow to
SMMUSD are a justification for eliminating the MFUA. Please note that Measure GS specifically provides that these
dollars will not replace existing City funding for our schools -- doing so would violate the expressed will of the voters of
Santa Monica.
The decades-long partnership between the City and SMMUSD has yielded benefits to both parties. Now is not the time
to create a rift in that partnership, so we urge you on Tuesday night to unequivocally reject the prospect of not
extending the MFUA in 2027.
Please see the attached letter for more details on our position.
Regards,
Nicole Faries
Ted Winterer
CEPS Co-Chairs
--
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 295 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
3
Ted Winterer
Realtor @Compass, 2115 Main Street Santa Monica
DRE #02047989
To help protect your privacy, Microsoft Office prevented automatic download of this picture from the Internet.
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 296 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Community for Excellent Public Schools
2532 Wilshire Blvd., #288
Santa Monica, CA 90403
www.excellentpublicschools.org
February 23, 2024
Santa Monica City Council
1685 Main Street, Room 209
Santa Monica, CA 90401
Re: Financial Status Update and FY 2023-24 Midyear Budget
Hearing Date: February 27, 2024
Agenda Item No. 11.B
Dear Councilmembers:
We are writing as co-chairs of Community for Excellent Public Schools (“CEPS”) with respect to the Staff
Report on Agenda Item No. 11-B (Financial Status Update and FY 2023-24 Midyear Budget) as it relates
to the City’s Master Facilities Use Agreement (“MFUA”) with the Santa Monica-Malibu Unified School
District (“SMMUSD”).
CEPS is very troubled by the Staff Report insofar as it raises the prospect of the MFUA potentially
expiring in 2027. The purpose of the MFUA is to provide reliable long-term funding for our schools. The
MFUA has a long history, beginning in 2004 (not 2012 as misstated in the Staff Report). And the Staff
Report ignores the context in which the MFUA originated: in response to a potential ballot measure
sponsored by CEPS that would have provided stable, long-term funding for our schools at a much higher
level than the MFUA. After CEPS collected about 15,000 voter signatures on a charter amendment ballot
measure (many more than required to qualify for the ballot), the City and SMMUSD entered the MFUA.
The MFUA is a critical part of a larger strategic partnership between SMMUSD and the City, a
partnership that has been mutually beneficial for both the City and SMMUSD. This partnership has
resulted in many millions of dollars in annual City tax revenue that funds City services, generated
primarily through the volunteer efforts of the school community. The City should be looking for ways to
build on this partnership, not place it in jeopardy.
In 2022, Santa Monica’s voters approved Measure GS (increasing the real estate transfer tax), which
directed the first $10 million of its annual tax revenue to SMMUSD. Measure GS specifically provides
that this funding will not replace existing City funding for our schools. Measure GS states, in what is
codified in Santa Monica Municipal Code section 4.90.020(c):
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 297 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Community for Excellent Public Schools
2532 Wilshire Blvd., #288
Santa Monica, CA 90403
www.excellentpublicschools.org
“In enacting this Initiative, it is the intent of the voters that any funds
allocated to the SMMUSD or any future school district pursuant to this
section should be additional to, and not a replacement of any funds the
City otherwise provides to the school district, including any funds
provided according to existing agreements or in accordance with prior
advisory measures regarding city funding for public education.”
(Emphasis added.)
Thus, Santa Monica’s voters approved MFUA funding for our schools when they approved Measure GS
in 2022. By referencing GS funding in the context of potentially allowing the MFUA to expire, the Staff
Report threatens to violate both the letter and spirit of GS.
In closing, CEPS urges each of you to commit in principle to extending the MFUA with no reduction in
school funding. Such City Council direction will provide both City Staff and SMMUSD with the clarity they
need to engage in responsible long-term budget planning. And such direction will assure the school
community (including students, parents and teachers) and the general public that the City will continue
its financial commitment to our public schools, which is critical to the overall health and well-being of
our community.
Sincerely,
Ted Winterer Nicole Faries
cc: David White
CEPS Executive Committee
CEPS Steering Committee
SMMUSD Board of Education
Dr. Antonio Shelton
Item 11-B February 27, 2024
Item 11-B February 27, 2024
11.B.g
Packet Pg. 298 Attachment: Written Comments [Revision 2] (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Financial Status Update and Midyear Review
February 2024
11.B.h
Packet Pg. 299 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
High Degree of Vo latility/Uncertainty
11.B.h
Packet Pg. 300 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
•Reserves provide financial
stability,cushion against financial
shocks
•Unrestricted reserves below pre-
COVID levels
•Legal Settlements
•Maintain services during
COVID
•FY 2022-23 reserves are needed for
contingent liabilities and working
capital
General Fund Reserve Levels
11.B.h
Packet Pg. 301 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Funds borrowed from Other Funds
Total $52.1
11.B.h
Packet Pg. 302 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
•Lost $170M in revenues
through June 2023
•To tal loss of over $204M,
ending in ‘26-27
•Gap reflects capacity to
restore services
•Additional challenges:
•New needs
•Inflation –Higher Costs
General Fund Revenues Still Lagging
11.B.h
Packet Pg. 303 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Inflation
Diminished Purchasing Power
We would need $120 today to match $100 in pre-pandemic days
Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W) –national annual averages
11.B.h
Packet Pg. 304 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
•3.7% average growth rate
•TOT impacted by hotel
renovations in short term.
Stronger growth mid-2024
reaching peak levels by late
2025/early 2026
•Property taxes projected to
increase as interest rates
moderate or are reduced
•Business License Tax increase
from higher gross receipts and
compliance efforts
•Parking revenues lower than
previous projection
Revenue Growth is Steady but Slow
11.B.h
Packet Pg. 305 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
•Contingent Liabilities (i.e., sexual abuse claims, CVRA)
•Infrastructure and equipment maintenance funding at reduced levels
•General and auto liability insurance contribution increases
•Pension losses in FY 2021-22
•Healthcare increases reflecting national trends
•Pier and Beach Funds require financial assistance from General Fund
Expenditure Challenges
11.B.h
Packet Pg. 306 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Capital needs unmet
•Now at 59% of pre-COVID
level
•Deferred maintenance is
unsustainable
•No additional investments
through forecast period
•$358M in projects
unfunded citywide
Capital Needs Remain Unfunded
with inflation
Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W) –national annual average
11.B.h
Packet Pg. 307 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Capital Improvement Program
Unfunded Projects (Not Comprehensive)
10
•Parking Structure 1 Seismic Retrofit
•Memorial Park Expansion
•Lincoln Neighborhood Corridor
Streetscape
•Street Light Upgrades
•Vehicle and Computer Replacement
•Gandara Park Restoration
•Airport Park Expansion
•Memorial Park Phases 2-3
•Fire Station Facilities
•City Hall North Wing Building
System Upgrade
•Pier Deck Upgrades
•Pier West End Upgrade
•Public Landscape Relocation
11.B.h
Packet Pg. 308 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
11
Sidewalk repairs
Right of way maintenance
Streetlight maintenance
Copper wire theft
Capital Improvement Program –Deferred Maintenance
11.B.h
Packet Pg. 309 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Challenges remaining
•Contingent liabilities
•Deferred infrastructure &
maintenance
•Additional CIP funding beyond base
allocations
•Program and service restorations
•Labor negotiations
Five Year General Fund Forecast
*Includes the use of one-time working capital
11.B.h
Packet Pg. 310 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
•Used to smooth years when
projected expenditures
exceed revenues
•Made available from earlier
revenue recovery
•Programmed over forecast
period
•Covers continuation of
programs and increases in
pension, healthcare,
insurance costs
Need for Working Capital Reserve
11.B.h
Packet Pg. 311 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Self-Sustaining: Water,Wastewater, RRR, BBB, Airport, Cemetery, Housing
Authority, Stormwater
Requiring Attention: Vehicle Management -future year repayments of
suspended contributions
General Fund Impact:Beach and Pier subsidies to offset revenue losses
and support critical capital expenditures
Other Funds (Non-General Fund)
11.B.h
Packet Pg. 312 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Key Ta keaways
•Stable forecast as economic recovery continues
•Significant liabilities demands fiscal restraint --hindering program /
service restoration
•Mounting infrastructure and deferred maintenance needs
•Need to continue to strengthen reserves
11.B.h
Packet Pg. 313 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
FY 2023-25 Midyear Revenue Adjustments (in millions)
General Fund
FY 2024-25
Increase /
(Decrease)
FY 2023-24
Increase /
(Decrease)
Description
$ 4.2$ (0.2)Transient Occupancy (Hotel) Tax
(0.6) (0.7)Sales Tax and Use Tax
1.2 1.5 Property Tax
2.73.4Business License Tax
(0.2)(0.2)Parking-Related
(1.6)(2.0)Developer Agreement
0.7(0.6)Other Misc. Revenues
$ 6.4 $ 1.2Total Revenue Changes
•Enables balanced budget
throughout forecast using
essentially the same level of
working capital reserve as in
previous forecast.
•Helps cover expenditure
changes and cost increases.
OS0
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Packet Pg. 314 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Slide 16
OS0 [@Jennifer Young] , this slide is good. We can use this one.
Oscar Santiago, 2024-02-21T21:50:26.266
OS0 0 Show in millions and combine smaller items.
Oscar Santiago, 2024-02-21T21:51:03.119
JY0 1 revised
Jennifer Young, 2024-02-22T01:11:29.215
11.B.h
Packet Pg. 315 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
FY 2023-25 Midyear Expenditure Adjustments
General Fund
FY 2023-24 Changes
To tal $1,848
•Add 7.3 Permanent FTEs
•3.0 from new revenues
•3.3 by deleting 8.0 temp. FTEs
•1.0 funded by Airport
•Right to Counsel Program and Below
Market Housing software upgrade (by
Housing Trust Fund)
•Reduced Measure GSH obligation
from lower TUT
FY 2024-25 Changes
Total $4.5 Million
•Increase insurance contributions
•CalPERS pension contribution
(0.7)Total FTE Changes
7.3Permanent
(8.0)As-Needed
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Packet Pg. 316 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
FY 2023-25 Midyear Adjustments
Other Funds
Revenues (in millions)Expenditures (in millions)
FY 2024-25FY 2023-24Fund
$ (0.1)$ (0.4)Airport
(2.3)(1.9)BBB
(0.8)(0.7)Housing Authority
(0.7)1.8 Miscellaneous Grants
4.9 1.1 Self Insurance Funds
1.6 4.5 Vehicle Management
(5.0)(4.9)Water
0.0 0.3Other Funds
$ (2.4)$ (0.2)Total
FY 2024-25FY 2023-24Fund
$ 1.1 $ 0.4 Big Blue Bus
(0.2)0.4Clean Beaches
(0.3)(1.7)Housing Authority
0.60.2RRR
0.70.1Vehicle Management
0.4(0.2)Wastewater Fund
0.80.6All Other
$ 0.8$ (0.2)Total
2.0Total FTE Changes
2.0Permanent
0.0As-Needed
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Packet Pg. 317 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
FY 2023-25 Capital Budget Expenditure Adjustments
Other Funds
FY 2023-24 Changes
To tal $8.6 Million
•Purchase of vehicles in RRR
o$4.0m payment from RRR to
Vehicle Mgmt. Fund
o$4.0m budget increase to
Vehicle Mgmt. Fund to
purchase the vehicles
•Santa Monica Blvd Safety
Enhancement Study
FY 2024-25 Changes
To tal $1.2 Million
•Ongoing contribution for
depreciation of new RRR
Vehicles
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Packet Pg. 318 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)
Other Business
Authorization:
•to accept a grant award from the California Department of Aging’s Local Aging &
Disability Action Planning (LADAP) grant program
•to accept a grant award from the U.S. Department of Homeland Security, Federal
Emergency Management Agency (FEMA) Hazard Mitigation Grant Program
(HMGP) through the State of California, Governor’s Office of Emergency Services
(CalOES)
11.B.h
Packet Pg. 319 Attachment: PowerPoint Presentation (6034 : Financial Status Update and FY 2023-24 Midyear Budget)