Sex Abuse Claims, Pandemic-Era Shortfalls Lead To 'Fiscal Emergency' In Santa Monica: City Staff

SANTA MONICA, CA — Municipal staff say the city of Santa Monica is facing extreme financial pressures and is urging the City Council to declare a state of "fiscal emergency."

On Tuesday, the City Council will consider a resolution that outlines the financial challenges the city is facing and directs the city manager to "take all necessary steps to address, alleviate, and mitigate the existing circumstances."

The resolution would declare "the city is experiencing a fiscal emergency."

City staff say the trouble started during the pandemic, when the city — which has historically relied on tourism tax income — faced a sudden 26.8% decline in revenue. That led to the elimination of hundreds of positions and city services have not been restored to pre-pandemic levels.

Sexual abuse claims are also an issue for the budget, city staff wrote. Change in state law "effectively eliminated" the statute of limitations for sexual abuse claims," staff wrote.

"The City has paid over $229 million in settlements relating to alleged sexual abuse purportedly committed 20 to 30 years ago by a former City employee (the “Settlements”). The Settlements have been funded largely by reserves in the general fund and by borrowing over $52 million from various City funds. Currently, the City faces additional abuse claims relating to the former employee from over 180 claimants that are seeking several million dollars for their alleged damages, the payment of which will be due in full upon order of the court and/or approval of the settlement," reads the staff report.

The claims are related to sexual abuse claims against Eric Uller, a former city police dispatcher. He worked with children at a police nonprofit's after-school program.

The allegations, which stem from incidents in the 1980s and 90s, surfaced in 2018 and prompted a police investigation. Uller was charged by the District Attorney's Office and found dead in an apparent suicide weeks later.

Read more about the city's financial picture on the city of Santa Monica's website.