Proposed $109.8 million Capital Improvement Program marks robust return to investment in public spaces

June 5, 2026 3:09 PM

SANTA MONICA, Calif. (June 5, 2027) - Santa Monica continues its comeback with a proposed Capital Improvement Program that prioritizes major event infrastructure, safe and accessible transit, and revitalization of parks and open spaces.

The proposed FY 2026-28 Biennial Capital Improvement Program, or CIP, budget marks the largest investment in capital projects since the pandemic and is a key outcome and accelerator of the city's Realignment Plan.

Over the past several years, the city's budget constraints and financial challenges resulted in a CIP budget focused mostly on maintenance and upkeep of core services and basic infrastructure.

The proposed FY 2026-28 CIP budget marks a notable shift back to proactive capital investments that position the city for future success and deliver the high caliber projects and public spaces residents and visitors expect from Santa Monica.

The CIP allocates $109.8 million in FY 2026-27 and $116.6 million in FY 2027-28 to 77 projects designed to repair aging infrastructure, improve resilience and sustainability, increase event readiness and operational flexibility, create welcoming public spaces, and boost tourism and economic activity.

The projects are grouped around four main goals:

• Preparing for major events & LA 28 Olympic & Paralympic Games. This includes implementing electrical infrastructure citywide, including along the beach, to support major events; infrastructure improvements at the Pier; the restoration of Camera Obscura; and Tongva Park repairs and improvements.
• Reinvesting in parks and open spaces. This includes the much-anticipated Memorial Park Redevelopment and Expansion project; replacing the Airport Park sports field; and the Virginia Avenue Park playground replacement.
• Maintaining and updating citywide infrastructure. In addition to several maintenance obligations, this includes a new facility renewal program to replace major building systems at the end of their useful life; renovations to the Main Library, which celebrates its 20-year anniversary this year; and streetlight modernization projects designed to enhance safety and placemaking.
• Modernizing transportation and mobility. This includes smart curb management; the annual paving and sidewalk repair program, including Santa Monica Boulevard Phase 1 and Chelsea intersection improvements; and the 14th Street bike and pedestrian improvements, along with other projects designed to advance the city's Vizion Zero efforts.

"For too long, Santa Monica residents watched as basic infrastructure needs went unmet. Three years ago, we had $456 million in deferred capital projects and a General Fund that couldn't keep up. Now we are turning the page," Mayor Caroline Torosis said. "The proposed Capital Improvement Program restores our infrastructure investment to above pre-pandemic levels, and residents can already see the results on their streets. The Pico Boulevard repaving. Thousands of square feet of new sidewalks. But we are not stopping there. Santa Monica is opening new parks and recreation facilities, proactively investing in our public spaces before they fall into disrepair, and giving this city the glow-up it deserves. The Realignment Plan promised a path back. This CIP is proof we are on it, and the best is still ahead."

The recent council discussion also included a review of updates to the 2026-27 operating budget, the second year in the approved biennial Fiscal Year 2025-27 Operating Budget. The city's General Fund is projected to be structurally balanced, with a surplus of approximately $8.95 million this fiscal year, 2025-26. From that surplus, $3 million will be set aside for the Council-approved Economic Recovery Reserve and the rest will be carried forward.

The city projects a balanced FY 2026-27 operating budget, as well as a structurally balanced operating budget going forward.

View the full staff report here, and watch the May 26 meeting discussion here.

The City Council is set to adopt the final CIP biennial budget and year two operating budget on June 23.

Media Contact

Lauren Howland
Communications and public information manager
[email protected]

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