City of Santa Barbara grapples with projected $7-10 million budget deficit

SANTA BARBARA, Calif. – The city of Santa Barbara is a renowned tourist destination, but that doesn't make it immune from budget challenges.

"We are projecting anywhere from a $7-to-10 million deficit in our general fund which funds our four core city services like police, fire, parks and recreation an library," said finance director Keith DeMartini. "It is expensive to run the city."

DeMartini said while revenues are softening, things such as salaries, benefits and pensions are costing more.

Rather than depend on a rainy day funds, city council members are considering ways to increase the revenue stream from parking by changing lots fees and adding meters on the street.

Councilmember Eric Friedman said it is not clear if that would help or hurt downtown.

"Whether or not there is a change how downtown is parked off street parking as well as the lots that could create additional revenue," said Friedman. "But at the same time would there be impacts to whether or not people would come downtown and would that revenue materialize."

Revenue changes may be linked to remote work and the partial closures on portions of State Street now in its fifth year.

"There are vacancies and there are people not in offices as much however I don't know that opening up the street would automatically solve it," said Mayor Randy Rowse. "But, I do know that keeping it closed is not helping."

The city could also add a half cent sales tax like some other surrounding cities have done.

But Mayor Rowse said the thought of raising taxes gives him heartburn.

"Potentially going up another half a point in sales tax, because what is happening is our revenues are still going up, I mean they are not in trouble, but our expenditures are growing faster than our revenues," said Rowse.

There is a rainy day fund, but the city officials don't want to deplete it.

The city will host a public Finance Committee meeting on Tuesday, April 30, at noon at the Gebhard Public Meeting Room on Garden St.

The finance director said he wants to hear from the community in person or online.

For more information visit https://www.santabarbaraca.gov/finance.