The City Council approved the 2025–2026 Budget at its meeting on June 9, 2025, but much of what has been approved will depend on the success of Measure CL, the quarter-cent sales tax going out for voter approval this summer. The Real Estate Transfer Tax also brought in some unforeseen revenue, illustrating the importance of the business community in supporting city services for residents.
From the city, “The budget outlines $199.3 million in proposed General Fund expenditures, with an estimated $177.6 million in General Fund revenue. It also allocates $179,300 for a new PRCS Senior Management Analyst position to assist with grant efforts, though, that position is contingent on voter approval of Measure CL in the August 26, 2025, election.”
The need for more staff – specifically more staff that will support development through grant writing – rest on the need to pass the sales tax measure.
In addition, “…the budget appropriates $250,000 to potentially support a consultant to help the City increase community participation in the budget process, which is subject to further City Council discussion and approval.”
Community input was a central factor in support for PRCS funding and affordable housing. Both the issue of staffing at the Plunge and support for Jubilo Village garnered weeks and months of meetings with public comment as the central feature
Again, from the city, “Taking on the projected $21.9 million shortfall, including a $14.9 million structural budget gap, will mean drawing down the reserves. As part of this action, the Council approved a resolution to draw funds from the Contingency Reserve to decrease it from the target 30% to 21.6% of the General Fund Operating Budget for Fiscal Year 2025-2026.”
Culver City has held an unusually high level of reserve funds, about 10% more than most other SoCal cites. The City of Santa Monica, which has a biennial budget, will be drawing down just over $60 million on it’s reserves for their 2025-2027 budget.
As presented at the meeting, City Manager John Nachbar has six months to create a plan to replenish the reserve over the next five years.
While some budgetary needs will depend on Measure CL, the proposed 0.25% local sales tax, the Real Estate Transfer Tax has brought in unforeseen revenue. The sale of a major commercial property in April 2025 added approximately $4.8 million to the balance.
The beginning General Fund balance as of July 1, 2025 is currently estimated at $135.5 million, about $5 million more than projected – higher than in the May proposed budget – once all adjustments are factored in.
Ballots for the Special Election on Measure CL must be returned by August 26, 2025.
Judith Martin-Straw