On June 30, 2026, the City of Santa Barbara adopted its operating and capital budget for Fiscal Year (FY) 2027, as required by the City Charter.
The FY2027 budget is comprised of all City funds, including the General Fund, special revenue funds, and enterprise funds.
Each fund accounts for distinct and uniquely funded operations. The FY2027 Adopted Budget of approximately $730 Million will fund community services and implement many capital improvement projects.
“While the City continues to face rising inflationary costs and many other significant economic challenges, this year’s budget underscores our commitment to fiscal responsibility as we attempt to maintain core services to the community within our anticipated revenues. Through hard work and multiple public deliberation meetings, the City’s General Fund budget is balanced; however, continued fiscal discipline will be required to balance future budgets as well as focus on replenishing reserves that have been depleted over the years. Through creative strategies and invaluable feedback from our community and the City Council, we have developed a plan that maintains the level of services the community expects. We remain dedicated to ongoing dialogue with residents to navigate these challenges,” said Kelly McAdoo, City Administrator.
Final actions taken by City Council during the FY2027 budget adoption discussion will be reflected on the online Budget & Reporting tool by end of business on Thursday, July 2, 2026.
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Santa Barbara has no room for bad financial surprises right now. Because the Contingency Fund is at zero, even a minor drop in tourism or sales tax will cause immediate budget pain. The city needs a transparent, clear plan to restore the required 10% contingency cushion ($22.7 million)—operating without a backup plan is too risky.