Finance Committee reviews city administrator's recommended two‑year financial plan, Measure I spending priorities

The Santa Barbara Finance Committee on April 29 heard an overview of the city administrator’s recommended two‑year financial plan for fiscal years 2026–27 and the proposed operating and capital budget for fiscal year 2026.

Staff told the committee that Measure I — the local sales tax measure enacted by voters — is projected to bring in just over $15,000,000 in fiscal year 2026 and about $15,400,000 in fiscal year 2027, and that the city administrator’s recommendation is to appropriate those revenues in both years, mostly to restore existing, essential services and to fund a small number of new or previously frozen positions.

Why it matters: The recommended spending would reverse several prior reductions and create ongoing funding for services that staff says were previously covered by one‑time sources. The proposal also sets aside annual transfers to housing accounts that advocates say are too small to address the city’s affordable‑housing shortfall.

Staff presentation and major Measure I priorities

Keith Demartini, the city’s finance director, and budget staff presented department‑by‑department highlights and several structural changes included in the recommended plan. Staff proposed reorganizing some functions so that Housing and Human Services and Community Vitality Initiatives (plus most downtown parking services) would report to a new deputy city administrator; that new deputy position is the only personnel addition created by the reorganization, staff said.

On Measure I specifically, staff proposed appropriating the full estimated receipts in both years and directing most of the funds to existing services. Staff listed the following Measure I uses in fiscal year 2026: - Police: funding for 34 positions (staff characterized…