Special City Council Meeting - April 9, 2026

The City of Santa Barbara held a Special City Council Meeting on April 9, 2026, focused primarily on the city's fiscal situation and budget planning for fiscal year 2027. Staff presented a detailed overview of the projected $14.6 million structural deficit in the general fund and discussed various budget balancing strategies, including delaying vacant positions, reallocating funds, and potential revenue measures. Notably, the council decided not to pursue a real property transfer tax measure for the November 2026 ballot due to legal challenges, limited outreach time, and community concerns. The meeting also covered allocations from Measure I sales tax revenues, funding for housing and homeless services, and capital projects under Measure C, including the police facility construction and street maintenance. Several cost-saving measures and revenue enhancements were proposed, such as increasing fees, optimizing fleet vehicle replacement, and utilizing opioid settlement funds for police services. Council members emphasized the importance of maintaining essential services, protecting workforce commitments, and addressing the ongoing depletion of reserve funds. The discussion highlighted the need for continued fiscal discipline, transparent planning for reserve replenishment, and strategic prioritization of expenditures to ensure long-term budget stability.