06/25/2026
The Santa Barbara City Council had one more chance to make last-minute adjustments to its Fiscal Year 2027 budget in a special hearing called on the council’s scheduled week off, after previous budget deliberations unraveled due to concerns over the city’s reserve shortfall.
This year’s budget planning season began with a hint of optimism back in April, when city staff revealed a budget that reduced the expected deficit from the original estimate of $10 million-$14 million to a much more palatable figure of $3.4 million.
That early optimism faded when deliberations began and councilmembers realized that, while the city was in a much better position than originally projected, with an operating surplus of around $100,000, this plan would require a contribution of $3.5 million into the city reserves just to meet minimum policy target levels. Then the harsh truth about the city’s reserves came to light, with Finance Director Keith DeMartini disclosing that the city had already depleted its contingency reserves and was nearly $30 million below its stated reserve target level.
Much of the council’s budget decisions have been overshadowed by the concerns over reserves, leading to tense debates about funding police officer positions, or over the amount of funding to be allocated toward the city’s Local Housing Trust Fund.
Read more: https://www.independent.com/2026/06/23/santa-barbara-city-budget-back-on-track-for-june-30-adoption/?utm_source=facebook&utm_medium=social&utm_campaign=Business&utm_content=City-Budget&utm_gen=utmdc
📸: Elaine Sanders / Santa Barbara Independent
