At Tuesday’s meeting, the City Council will consider City Manager Oliver Chi’s “Realignment Plan” aimed at addressing the city’s financial instability, economic decline, and deteriorating public spaces. The proposal seeks to restore public safety, economic vitality, and long-term fiscal balance after years of pandemic-related disruption, rising homelessness, and the financial impact of large legal settlements.
The staff report, with a plethora of links for specific recommended changes, can be found here. You can read other coverage at the Daily Press and Santa Monica Lookout.
At least once Councilmember is excited about the proposal. Councilmember Dan Hall writes, “I believe we stand at a crossroads, the beginning of a new chapter for Santa Monica that looks boldly toward our future. As Mayor Pro Tempore Torosis recently said, this is our ‘Renaissance Agenda;’ it’s a moment to restore pride in our city, rebuild our sense of community, and renew our shared commitment to making Santa Monica exceptional once again.”
Once among California’s most prosperous cities, Santa Monica’s reserves have fallen from $435.8 million in 2018 to $158 million today, with only $98 million unobligated. Retail vacancies are near 16%, office vacancies at 35%, and both sales and hotel tax revenues have declined. The city faces a projected $29.6 million deficit in FY 2026-27.
The plan prioritizes rebuilding public safety through increased police visibility, expanded patrols, and a new Downtown Substation. It also proposes relocating the SamoShel shelter to a new “healing center,” boosting misdemeanor prosecution capacity, and introducing ordinances addressing vehicle habitation and homelessness.
A $3.5 million downtown revitalization program would improve sidewalks, trees, crosswalks, lighting, and public spaces by early 2026. Additional funds would enhance pedestrian and bicycle safety, expand beach maintenance, and support neighborhood improvements beyond downtown.
Economic recovery efforts include large-scale public activations such as regular Promenade festivals and a new Santa Monica Music Festival in 2026. The city will explore expanding Entertainment Zones, streamline permitting using new software and AI plan review tools, and reduce restaurant fees to spur investment.
The plan restores library services, enhances code enforcement, and targets vacant properties for redevelopment. It also aims to rebuild staffing levels across city departments, restore maintenance programs, and fully deploy a new ambulance program expected to generate $7 million annually.
To maximize revenue, the plan recommends redeveloping key city-owned parcels, exploring joint ventures, and studying new revenue projects such as a regional fire dispatch system, a Malibu–Santa Monica–Marina Del Rey ferry, and a beach gondola system.
Financially, the plan targets a balanced budget by FY 2027-28 through expenditure controls, new revenue sources, and a potential parcel tax to support schools. Strategic downtown redevelopment could generate up to $200 million, replenishing reserves by 2028.
Chi positions the Realignment Plan as a roadmap for Santa Monica’s renewal—focusing on restoring safety, civic pride, and fiscal health. The City Council will consider the proposal at its October 28 meeting.
“This is the plan we’ve been working toward since the day we took office, through many months of negotiations with staff and the community. It’s why we hired City Manager Chi, because we believed he could bring together the priorities we ran on: reimagining public safety, building a cleaner and more vibrant Downtown, supporting the arts and entertainment, and investing in the people who make City Hall work for our community, all while staying true to our progressive Santa Monica values,” Hall continues.
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