The City Council is set to review a 22-point proposal that includes $3 million in economic development funding, along with changes to parking rules, the police department and the city’s remote work policy.
Six months after adopting a wide-ranging plan to stabilize city operations, Santa Monica officials are preparing to consider an updated strategy Tuesday that would shift focus from organizational recovery to economic revitalization.
The City Council will review a 22-point proposal that includes $3 million in economic development funding, changes to parking and permitting rules, police department restructuring and modifications to the city’s remote work policy. The update builds on a Realignment Plan adopted last year that officials say has produced measurable results, including a 12.5% drop in serious crime and the first fully staffed police department in more than 20 years.
“The Realignment Plan is working,” Mayor Caroline Torosis said in a statement. “Crime is down, libraries are open, and for the first time in years Santa Monica’s finances are on solid ground. Now we’re going further — welcoming new businesses by making it as easy as possible to open and operate here, and building a real path out of homelessness that the city controls end to end.”
The recommended actions come as city officials acknowledge that foundational improvements have not yet generated the level of private sector investment needed to sustain long-term economic recovery. Restaurant and hotel sales declined 4.1% year over year in the second quarter of 2025, according to city data, with quick-service restaurants down nearly 14%.
To address those headwinds, the proposal would create a $3 million Economic Development Fund from available reserves, waive city wastewater fees for new restaurants and restaurant expansions, and eliminate permit requirements and fees for sidewalk dining setups consisting of simple tables and chairs. The city also plans to expand its Entertainment Zone program — which allows alcohol consumption in designated public areas — from the Third Street Promenade to the entire downtown core, portions of the Santa Monica Pier, and along Main Street and Montana Avenue.
Police Department staffing has stabilized significantly under the original plan, with sworn officer ranks full for the first time since 2005 or earlier, according to city records. The City Attorney’s criminal unit is now filing charges in approximately 88% of legally fileable cases, up from 65-70% previously, and building plan check turnaround times have improved to 92.5% on-time for first-round reviews — an increase of more than 40 percentage points in four months.
All public library branches are open for the first time since 2020.
On the fiscal front, city officials project the general fund will achieve a structurally balanced budget by the end of the 2026-27 fiscal year, one year earlier than originally anticipated. The improved outlook is driven in part by approximately $28.8 million in new programmatic revenues, including parking rate adjustments, a digital signage program and a new ambulance operator program that launched in February.
The updated proposal includes a reorganization of the Public Works Department that would merge downtown and beach maintenance teams and expand enhanced cleaning services to commercial corridors including Montana Avenue, Main Street, Pico Boulevard and Ocean Park Boulevard.
The city also plans to modify its remote work policy, requiring executive team members to work fully in-person schedules and establishing standardized hybrid schedules for eligible employees. The proposal includes an “In-Person Workplace Equity Benefit” providing eight hours of monthly leave time for employees working fully in-person schedules, as well as a six-month paid administrative leave option for employees who choose to resign rather than comply with the new structure.
Other public safety measures under consideration include a memorandum of understanding with the Los Angeles County Metropolitan Transportation Authority that would allow Santa Monica police to conduct enforcement on Metro train platforms within the city, addressing what officials described as persistent public safety impacts from the Expo Line terminus.
The council will also consider directing staff to study creation of a city-aligned nonprofit housing development entity and to begin community outreach on a “housing-first system of care” that would transition the city from managing homelessness impacts to managing housing outcomes.
The City Council meeting begins at 5:30 p.m. Tuesday at City Hall.
