Goleta council adopts two‑year budget and CIP, approves grants and housing policy steps

The Goleta City Council on June 17 adopted a structurally balanced two‑year operating budget and a revised five‑year capital improvement program, approved staff recommendations for non‑city grant awards and contracts, adopted the city’s Community Development Block Grant plans for 2025–2026 and the 2025–2029 consolidated plan, approved the city’s 2025 arterial pavement project, and accepted staff and consultant recommendations on two housing‑element implementation items.

The adopted operating budget covers fiscal years 2025–26 and 2026–27 and includes a $2.4 million one‑time general fund contribution to capital projects. Finance Director Luke Rio said the proposed budget is “structurally balanced,” while highlighting continuing long‑term pressures: bonds issued this year, increasing debt service, and sensitivity of key revenues such as transient‑occupancy tax (TOT) and sales tax. The council also adopted the city’s Gann appropriations limit as required by state law.

Why it matters: the budget sets spending and capital priorities for public safety, pavement, the library and community center, homelessness response, and economic development over the next two fiscal years. It programs the debt service for two bond issues issued in March (lease revenue and sales tax revenue bonds) and funds near‑term capital needs while leaving several large CIP project gaps to be closed with future grants or appropriations.

Budget and capital highlights

- Revenues and reserves: The city projects roughly $51.4 million in general‑fund revenue for 2025–26 and about $52.8 million for 2026–27, with TOT and the city’s transactions‑and‑use tax (TUT) among the largest revenue sources. The contingency reserve remains fully funded and is projected to meet the city’s policy target. - Debt and grants: Goleta issued approximately $35.7 million in bonds this year; annual general‑fund debt service on the lease revenue bonds is about $1.1 million. The city also reported success in securing grant funds for library ADA/safety projects and coastal and wildfire protection projects; a remaining funding gap for the library’s building project stands at approximately $457,000 pending additional options to close the shortfall. - Pavement and streets: The city continues a multiyear pavement program. Staff said bids for this year’s arterial pavement project came in about $2 million under the engineer’s estimate, allowing staff to add alternate streets to the contract; the recommended award will raise the citywide pavement condition index (PCI) from about 57 to 60. Council discussion stressed that larger additional federal or grant awards could free general‑fund dollars to support more pavement work.

Community Development Block Grant (CDBG) actions

At a public hearing the council adopted the city’s Citizen Participation Plan,…