July 8, 2025 Breaking News, Latest News, and Videos

SM.a.r.t: Residents and the Pension Crisis

The members of the SM.a.r.t. group are deeply concerned about the City of Santa Monica’s long-term financial health. This guest column is by members of the now-disbanded Compensation Advisory Committee.

Santa Monica faces an unfunded pension liability of more than $461 million, placing our city’s future at risk. Residents are joining together to request that City Council continue and expand the Compensation Advisory Committee, a committee of residents who were appointed to work alongside the City’s Audit Committee to study how Santa Monica City salaries compare with peer cities.

The Advisory Committee has been dismissed by City Council. We are requesting that Council mount a new Residents’ Fiscal Sustainability Committee to continue this critical work. This newly formed committee would include volunteers with a range of skills in finance to assist the City and keep the public informed of how we are paying down Santa Monica’s debt.

Santa Monica City Hall.

A recent analysis by the California Policy Center, a Sacramento-based think tank, reported that Santa Monica City Hall’s total pension costs are likely to increase by almost 75 percent by fiscal year 2024-2025.

The City-sponsored Moss Adams study of Santa Monica identified factors that are driving our pension burden:

  • Santa Monica’s median senior leadership compensation is $214,842 – the highest compensation of all peer cities studied.
  • Santa Monica also hires more personnel than peer cities.
  • Santa Monica is highly unionized.

Studies show that resident oversight fosters good governance. Therefore, our city’s pension crisis must be faced with realism and transparency – as a community.

On Tuesday, June 12 at City Council, we will propose a Residents’ Fiscal Sustainability Committee.

All Santa Monica taxpayers have a vested interest in increased resident oversight.

If you agree, please sign onto the letter to City Council (below) by sending an email to: laurence.eubank.santamonica@gmail.com

Citizens’ Fiscal Sustainability Committee

As volunteer members of the Compensation Study Advisory Committee, we participated in the recent audit of Santa Monica compensation practices by Moss Adams, a private, independent firm contracted by the city government.

The experience convinced us that citizen participation in budgetary decisions made by Santa Monica’s city government is both vital and beneficial, a fair, reasonable and logical component of prudent fiscal management, since we – the public – pay the bills.

After canvassing members of the committee, we assure the Council that many are ready to continue working with the City to address fiscal anxieties of residents in responsible, collaborative discussions that lead to sound budgetary decisions of city management.

We therefore urge our City Council to continue an advisory committee, including new members from City Employee bodies, actuarial or pension experts, and the business community as necessary, to add public sector representation and private sector expertise to city budget deliberations.

The Moss Adams experience was worthwhile insofar as data made clear that comparable to municipalities in the Los Angeles area, Santa Monica employee compensation levels were above average, staffing levels were highest per capita, and productivity was average. The overall assessment indicates that while Santa Monica enjoys a robust economy, we spend all the municipal revenue it generates and more, as illustrated by the City’s $461 million unfunded pension liability.

Given projected budget deficits in the near term – shortfalls of $3 million in 2019-20 and $19 million in 2021-22 – hard choices must be made to put our fiscal house in order, including exploration of alternatives for acceleration of the retirement of our unfunded pension liability. Pensions are integral to the compensation, benefit, and staffing matrix that accounts for 65 percent of expenditures in the nearly $800 million overall annual municipal budget.

Though our strong economic base makes us far better prepared to address this challenge than myriad examples of municipal indebtedness across the state and country, it is of cold comfort given the economic constriction that must inevitably follow a decade of national GDP growth, the longest sustained expansion in a century. With the next recession – certain as tomorrow’s sunrise – the existing pension shortfall will likely balloon to more than half a billion dollars, becoming an existential threat to our fiscal sustainability.

Therefore, we call upon the City Council to continue and enlarge citizen participation in city fiscal matters; appointment of a Citizens’ Fiscal Sustainability Committee is an appropriate place to start.

Laurence Eubank & Dominic Gomez

Guest writers for SMa.r.t: Thane Roberts AIA, Architect, Robert H. Taylor AIA, Ron Goldman FAIA, Architect, Dan Jansenson, Architect, Building and Fire-Life Safety Commission, Samuel Tolkin Architect, Mario Fonda-Bonardi, AIA, Planning Commissioner, Phil Brock, Santa Monica Arts Commission. For previous articles see www.santamonicaarch.wordpress.com/writings.

 

 

 

<>Related Posts

Anti-Drunk Driving Resolution Introduced as City Council Honors Late Palisades Teen Killed in Crash

July 8, 2025

July 8, 2025

Levi, who was set to attend the University of Virginia this fall, was killed by a drunk driver on May...

Free and Reduced Price School Meals Available for Eligible Families in Santa Monica-Malibu District

July 8, 2025

July 8, 2025

Parents in Need Encouraged to Apply, SMMUSD Commits to Nutritious, Accessible Meals By Brandyi Phillips, SMMUSD Chief Communications Officer Santa...

Big Blue Bus to Raise Fares for First Time in Nearly a Decade

July 8, 2025

July 8, 2025

The fare increase aims to offset rising costs for fuel, utilities, and supplies, according to the agency. The Santa Monica...

Shore Hotel: A Local Destination for Summer Fun

July 8, 2025

July 8, 2025

Bring on all things summer. Walking or biking along Santa Monica Pier, you might find yourself taking a pause at...

Santa Monica’s 150th Anniversary to be Celebrated with Vibrant State of the City Event

July 7, 2025

July 7, 2025

Attendees are encouraged to bring blankets, beach chairs, and picnics to enjoy during the performances Santa Monica will mark its...

Soprano Golda Zahra Returns to BroadStage For a One-Night-Only Musical Celebration

July 7, 2025

July 7, 2025

Hailed as “the rising star of the opera world” by The Hollywood Times, internationally acclaimed soprano Golda Zahra makes her much-anticipated return to BroadStage in...

(Video) Hundreds of Drones Light up the Sky for Palisades to Celebrate July 4th

July 7, 2025

July 7, 2025

The Event Marked One of the First Large Gatherings Among Palisadians Since the January Wildfires. The Event Marked One of...

Transform Your Life: The Free Virtual ONENESS GLOBAL SUMMIT Debuts July 18-20, 2025

July 7, 2025

July 7, 2025

The ONENESS GLOBAL SUMMIT, a transformative three-day virtual event, is coming, July 18-20, 2025, offering participants worldwide a free opportunity...

Santa Monica Home Defies Convention: Architect Eric Owen Moss Debuts Shape-Shifting Design

July 7, 2025

July 7, 2025

Pistachio-Colored Marvel Boasts Curving Walls, Sharp Angles, and Challenging Design A striking residence in Santa Monica is turning heads with...

Caitlyn Jenner’s Friend and Former Foundation CEO Dies in Malibu ATV Crash

July 7, 2025

July 7, 2025

ATV Plummeted 350 Feet After Rear-Ending Vehicle in Malibu Sophia Hutchins, former CEO of the Caitlyn Jenner Foundation and longtime...

New SaMo Bridge Program Refers 56 People in First Month; 37 Connected to Services

July 7, 2025

July 7, 2025

According to city officials, the program is on pace to meet its goal of serving 260 individuals annually Santa Monica’s...

Multi-Family Venice Property on Rare Double Lot Lists at Over $5M

July 7, 2025

July 7, 2025

In total, the four units provide 5,398 square feet of living space A multi-family property located one block from Venice...

Hama Sushi Hosts Weekly Music and Comedy Open Mics

July 5, 2025

July 5, 2025

The venue, a Venice Beach staple since 1979, has recently expanded its legendary happy hour to the entire patio Hama...

Connections Breakfast to Network Local Business Professionals in Malibu

July 5, 2025

July 5, 2025

The event, sponsored by Malibu Country Mart, will feature a breakfast mixer where attendees can meet new contacts  A Connections...

12th Annual Gopher Scramble Golf Tournament to Benefit Venice Heritage Museum

July 5, 2025

July 5, 2025

The museum opened to the public in March 2024 at the Main Street Design Center with its inaugural exhibition, “This...