Santa Monica residents will pay higher fees at the pool, face a new $500 penalty for tenant-protection violations during construction, and could be asked to vote on a parcel tax that city officials say is essential to closing a structural deficit.

The City Council voted 7-0 on Tuesday, June 23, to adopt a combined $908.8 million operating and capital improvements budget for fiscal year 2026-2027, on a motion by Councilmember Barry Snell seconded by Mayor Caroline Torosis.

The spending plan funds 2,287.6 full-time equivalent positions and continues priorities from the City Realignment Plan adopted in October 2025. That plan responded to a projected $30 million annual structural deficit driven by $229 million in legal settlement costs.

What residents will feel

Several city fees will rise 3.3%, matching the cost-of-living adjustment given to city workers. Aquatics fees jump 8% to 10%, well above the 3% to 6% increases applied to most other recreation programs. Staff member Jenny Rogers told the council that aquatics fees had not been raised in five years, while operating costs climbed more than 20% over that period.

Karen Melick of the Santa Monica Aquatics Advisory Committee flagged the gap: "The increases in fees for aquatics are not aligned with other recreation fees. Aquatics fees are being increased eight to 10%; most other increases are only three to six percent."

A new $500 fine takes effect for violations of tenant protections during construction phases. Community Development Director Jing Yeo confirmed code enforcement will have capacity to enforce it.

Capital projects accelerated for the Olympics

Three capital improvement changes were made since the May 26 study session: the Neighborhood Greenways Project was moved up from FY 2027-28, the 4th Street Transit Priority Improvements were accelerated in preparation for the 2028 Olympic Games, and funding was reduced for a state-supported affordable housing project in FY 2027-28.

Separately, the city expects roughly $2.6 million in state gas tax revenue for road improvements.

Structural balance still out of reach

Finance Director Oscar Santiago told the council that full structural balance by next summer hinges on a $12 million joint-use agreement with the school district coming off the city's books. Without a parcel tax making it to the ballot and passing in 2026 to replace those funds, Santiago said, there will be "some tough decisions ahead for the council."

No ballot date for a parcel tax has been confirmed.

Parks, housing, and what's next

Matt Goldenberg, co-chair of the North of Montana Association, told the council the city has just 1.55 park acres per 1,000 residents and praised the budget's investment toward a goal of five acres per 1,000. "For decades, Santa Monica's parks have been overlooked," Goldenberg said. "This is the council that inherited that challenge and chose to act on it."

Housing Authority Board member Hajar Muqtasid St. Claire pressed for more staff communication with Resident Advisory Board members, saying that for four years staff had told her quarterly outreach was "not in the budget." Mayor Pro Tem Jesse Zwick and Councilmember Dan Hall voiced support.

The council's next regular meeting is Tuesday, August 11. Residents can view the full budget documents and submit public comment through the city clerk's office.