Santa Monica City Leaders Approve Declaration Of Fiscal Distress

CBS Los Angeles

September 10, 2025

Santa Monica City Council members on Tuesday approved a declaration of fiscal distress, stating that the move is necessary to help address the financial struggles the city is facing.

The resolution, which was unanimously approved, will serve as an official document to better position Santa Monica for future grant funding and interactions with governmental and regulatory entities, council members said. City Manager Oliver Chi said that their current financial situation was "certainly serious."

Late last week, a staff report showed that Santa Monica had not only paid over $229 million in settlements in sexual abuse cases, but that the city also faced nearly 200 additional claims from a former employee. On top of this, city officials also attributed the distress to a reduction in tourism tax revenue and issues lingering from the coronavirus pandemic.

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