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, the 2025–29 Consolidated Plan, and the 2025–26 Action Plan for CDBG funds from the U.S. Department of Housing and Urban Development (HUD). Senior management analyst Cassidy Laaire said the city’s assumed annual CDBG allocation is about $320,000 with approximate annual splits of $64,000 for administration, $48,000 for public services, and $208,000 for capital projects. The staff‑recommended 2025–26 subrecipient awards include:

- LEAP (formerly Isla Vista Youth Projects): $29,548 to serve an estimated 200 households (public services) - People’s Self‑Help Housing (supportive housing program): $18,590 to serve an estimated 253 households (public services) - Matilda Park Improvement Project (capital): approximately $288,800; staff estimated the project location serves about 2,360 people in adjacent block groups

Human services / Support to Other Agencies (STOA)

Council approved Human Services Standing Committee recommendations to continue multi‑year support to a set of nonprofit and governmental partners that deliver services not provided directly by the city. Key recommended amounts in the memorandum of agreements include (amounts show FY2025–26 and FY2026–27 where listed):

- Foundation for Gersh Park: recommended $200,000 (2025–26) and $204,000 (2026–27) - Goleta Valley Historical Society: recommended $190,000 (2025–26) and $193,800 (2026–27) - Goleta Union School District (crossing guard services): $20,400 (2025–26) and $22,900 (2026–27) - South Coast Railroad Museum: $51,000 (2025–26) and $52,100 (2026–27) - Santa Barbara Moves (Safe Routes to School): $15,300 (2025–26) and $15,700 (2026–27)

Staff noted Fairview Gardens was transitioned into the city‑grant program rather than STOA. The total recommended STOA funding for year 1 shown in the staff report is $476,700 (subject to final budget adoption).

Affordable housing implementation and micro‑units

The council considered two housing‑element implementation items brought by staff and consultants:

- Market‑rate local preference (HE 2.2.a): Consultants (BAE and associated housing experts) recommended not extending the city’s existing local preference rules—currently applied to deed‑restricted below‑market‑rate units—to market‑rate sales or rentals. Staff and the council agreed, citing potential legal exposure under state and federal fair‑housing law and the large administrative burden of monitoring market‑rate transactions. The council voted to accept staff’s recommendation not to extend a local preference to market‑rate units, and to monitor other jurisdictions and support nonprofit and employer‑led housing initiatives.

- Affordable‑by‑design analysis (HE subprogram 2.4.g): A consultant study reviewed a broad menu of design, regulatory and procedural measures the city could use to lower development costs for specific housing types (for example, fee deferral, targeted open‑space standards for infill, and modular construction). Staff recommended a phased approach: pursue lower‑effort, procedural changes and pilot items now (categories 1–2 in the staff memo), and defer the larger regulatory changes (category 3 and any item that would require a housing‑element amendment) for review in the 2027 halfway/housing‑element check‑in. The council voted to accept staff’s phased approach (move forward with categories 1 and 2, study others later). Council members debated micro‑units (very small studios) at length; the council did not direct staff to pursue a micro‑units program now, in part because of uncertainty about whether such a requirement or mandate would trigger a housing‑element amendment or raise questions with the California Department of Housing and Community Development (HCD).

Other notable items and public comment

- Grants recusal: Two council members recused themselves from the A11 city‑grants vote because they work for organizations that were applicants; the council approved the grants with a 3–0 vote among remaining members. - Proclamations: The council issued proclamations recognizing Fiesta Ranchera Day (June 19), Parks & Recreation Month (July), LGBTQ+ Pride Month (June) and Juneteenth (June 19). Juneteenth presenters thanked the council but one cofounder of Juneteenth Santa Barbara said she was hurt that the Fiesta Ranchera date and Juneteenth were scheduled the same day and asked the city to do better coordination in the future. - Public testimony: The South Coast Chamber of Commerce urged increased investment in economic development implementation funding; other public speakers praised proclamations and community programs.

Votes at a glance (motions & outcomes)

- Consent calendar (items A1–A18 except A11 and A15): Motion to approve the consent calendar except items A11 and A15; outcome: approved, unanimous roll call (Reyes Martin, Kiriakou, Smith, Kasdan, Perotti) (no formal mover noted in record). (Agenda reference: consent calendar)

- A11 — Award of city grants for FY2025–26 (pulled for recusal): Motion to approve item A11 as recommended; mover: Council member Smith; second: Council member Carriaco; vote: Council member Luis Reyes Martin — recused; Council member Kiriakou — recused; Council member Catherine Smith — yes; Mayor Pro Tem Kasdan — yes; Mayor Paula Perotti — yes; outcome: approved (3 yes, 2 recused). (Agenda reference: A11)

- A15 — 2025 arterial pavement project (plans/specs and contract award): Motion to approve item A15 as recommended; mover: Council member Smith; second: recorded; vote: unanimous roll call in favor (Reyes Martin, Kiriakou, Smith, Kasdan, Perotti); outcome: approved. (Agenda reference: A15)

- C1 — Adopt Citizen Participation Plan, 2025–29 Consolidated Plan and 2025–26 CDBG Action Plan (public hearing): Motion to adopt the CPP, consolidated plan and 2025–26 action plan and authorize submission to HUD; outcome: adopted; roll call vote: Reyes Martin — yes; Council member Kiriakou — abstain; Council member Smith — yes; Mayor Pro Tem Kasdan — yes; Mayor Perotti — yes. (Agenda reference: C1)

- D1 — Memoranda of agreements (Support to Other Agencies program recommendations): Motion to approve the Human Services Standing Committee fiscal‑year recommendations and authorize the city manager to execute agreements as shown in Table 1; mover: Council member Carriaco; second: recorded; vote: unanimous roll call in favor (Reyes Martin, Kiriakou, Smith, Kasdan, Perotti); outcome: approved. (Agenda reference: D1)

- C2 — Adopt two‑year operating budget (FY2025–26 and 2026–27), adopt five‑year CIP and related resolutions (Gann limit and schedule of positions/salary schedule): Motion to adopt the 2‑year budget, the five‑year CIP, the Gann appropriations limit resolution and the schedule of authorized positions/salary schedule; mover: Council member Carriaco; second: recorded; vote: unanimous roll call in favor (Reyes Martin, Kiriakou, Smith, Kasdan, Perotti); outcome: adopted. (Agenda reference: C2)

- D2 — Housing priority for Goleta residents and employees (HE 2.2.a): Motion to accept staff approach and consultant memo and not extend local preference to market‑rate units, to monitor other jurisdictions, and support partners that incentivize local housing; mover: Council member Carriaco; second: Council member Smith; vote: unanimous roll call in favor (Reyes Martin, Kiriakou, Smith, Kasdan, Perotti); outcome: accepted/adopted. (Agenda reference: D2)

- D3 — Affordable‑by‑design (HE 2.4.g): Motion to accept staff approach to pursue shorter‑term procedural and program changes (categories 1 and 2) and defer larger regulatory or housing‑element‑amendment items to a later review (2027 check‑in); mover: Council member Carriaco; second: recorded; vote: unanimous roll call in favor (Reyes Martin, Kiriakou, Smith, Kasdan, Perotti); outcome: accepted/directed staff to proceed with categories 1–2. (Agenda reference: D3)

What’s next

- Staff will finalize the adopted budget document for publication and continue grant‑seeking to close remaining CIP gaps on major projects (library, San Jose Creek fish passage and others). - The city will submit adopted HUD documents (CDBG plans) via IDIS and implement the funded public‑service and capital projects. - Planning staff will proceed with the narrower program and procedural items identified in the affordable‑by‑design recommendations and will return to council with any legislative items requiring ordinance or housing‑element amendment.

This article is based on the June 17, 2025 Goleta City Council meeting transcript and staff presentations.