Labels: fact = printed in the cited city document. secondhand = press. inference = arithmetic or judgment.
The answer
The city share is paid by shrinking seven named General Fund lines, led by the Measure GSH affordable-housing transfer. Every dollar below leaves a line that funds something today, and each row says what stops.
| # | Line taken from | FY2026-27 amount | Take a year | Starts | What we give up |
|---|---|---|---|---|---|
| 1 | Measure GSH transfer to the Housing Trust Fund | $9,348,500 | $4.0M to $4.5M | FY2027-28 | $4.0M to $4.5M a year less for city loans to new deed-restricted affordable housing |
| 2 | Reed Park Ambassador Program | $645,884 | $0.32M to $0.65M | FY2027-28 | Half to all paid ambassador shifts in Reed Park |
| 3 | Downtown Santa Monica Inc. ambassadors, city payment | $1,084,163 | $0.27M to $0.54M | FY2027-28 | A quarter to half of city-paid ambassador hours downtown |
| 4 | City Manager communications staff added June 2026 | $387,238 | $0.39M | FY2027-28 | Those added communications positions |
| 5 | Realignment communications consultants | $750,000 | $0 to $0.75M | FY2027-28 if it recurs | Outside communications consultants |
| 6 | Police overtime, non-event | $9,120,048 | $1.0M to $1.5M | FY2028-29, once realized | Overtime shifts no longer needed; no officers cut |
| 7 | Public Works Homeless Support Team (HoST) | $577,940 | $0.29M to $0.58M | FY2028-29, once realized | Half to all of the original HoST crew hours |
| Ongoing total | $6.27M to $8.90M |
One-time money for start-up and capital:
| Line | Amount | Use | What we give up |
|---|---|---|---|
| Camera Obscura Redesign Implementation, FY2026-27 capital | $3.0M | Tiny-home or site build | The redesign waits about two years |
| FY2025-26 surplus not assigned to a named project | up to $1.28M | Open safe parking and safe sleeping before June 30, 2027 | The unassigned remainder of last year's surplus |
All take amounts are inference. All FY2026-27 amounts are fact, with cites in the ledger below.
What the city share really is
- Model figure. the site's cost model sets the new city money at $5,560,000 to $7,660,000 a year (bed costs $14.01M to $19.02M plus $100,000 in trips minus the county's $8.55M to $11.46M). Earlier builds subtracted a $1,221,616 Local Solutions Fund; that fund is already spent.
- The Local Solutions Fund is already spent. The line item says it replaced Measure H money (Line Item p.337, fact). The July 2026 system-of-care contracts put $306,523 of it into the Palm Motel (staff report p.14, fact). Counting it as free money understates the city's cost.
- Corrected figure. Without the fund, the city share is $5,560,000 to $7,660,000 a year. With a 10% margin it is $6,116,000 to $8,426,000 (inference). The stack covers this at both ends.
- First year is partial. The beds open in phases from June 2027 to June 2028. FY2027-28 needs about $3.82M to $4.99M (inference). Rows 1 to 5 supply $4.98M to $6.82M from day one.
- If the county pays nothing, the city share is $14.1M to $19.1M. This stack covers about half of that. Moving the whole GSH transfer adds $4.8M to $5.3M. That still leaves $3M to $5M a year with no clean source except reserves.
- One collision. City staff already name GSH as a way to fill the system of care's gap once the Providence Saint John's money runs out in Year 3. That gap is about $2.68M a year (inference from staff report p.14). With both claims, $6.7M to $7.2M of the $9.35M transfer would go to beds.
Ledger, ranked by defensibility
1. Measure GSH affordable-housing transfer. General Fund account 01800002.691740, $9,348,500, FY2026-27 plan (Line Item p.620, fact).
- What it funds today: a yearly General Fund transfer to the Housing Trust Fund, which lends to affordable-housing projects.
- Can it move: yes. GSH (2016) is a general sales tax. The half-for-housing split comes from advisory Measure GS (2016) (adopted budget p.334, fact), and an advisory measure binds no one.
- Precedent: Council deferred this transfer in FY2020-21, FY2022-23, FY2023-24 and FY2024-25 (adopted budget pp.300-301, fact).
- Vote: a Council majority, 4 of 7, at the June 2027 budget adoption. A mid-year amendment needs 5 of 7 (agenda, fact).
- Strongest case against: this trades future permanent affordable units for beds now, and the Council majority ran on affordable housing.
2 and 3. Ambassador contracts. The Reed Park program costs $645,884 and the Downtown Santa Monica Inc. payment costs $1,084,163 in the FY2026-27 plan (Line Item p.610, fact). Both pay for a staffed presence where people camp. Both are General Fund contracts with no legal restriction. The takes start once those encampments are indoors.
4 and 5. New June 2026 City Manager additions. These are $387,238 for communications staff and $750,000 for Realignment communications consultants (May 26, 2026 Attachment A p.6, fact). Both are discretionary General Fund items. Whether the consultant line repeats in FY2027-29 is unknown, so the low end counts it at $0.
6. Police overtime. The FY2026-27 plan budgets $9,120,048 in General Fund overtime across five divisions (Line Item pp.396-412, fact). Actual overtime was $12.05M in FY2022-23 and $13.78M in FY2023-24 (fact, same pages), above budget both years. A cut to the budget line alone would not free cash. The take moves only when audited non-event overtime falls below FY2026-27 actuals. LA28 and the $1.5M Special Deployments line are excluded. The adopted FY2026-27 police total is $152,920,089 (Addendum p.11, fact). It rose from the $131.2M plan, and the June 2026 overtime line was not republished.
7. HoST cleanup. Cost center 01500037 is $577,940, including $170,626 of Measure CS hotel tax (Line Item p.461, fact). The Realignment Plan added a seven-day expansion whose cost is not itemized (fact, March 24, 2026 report). HoST hauled 436 tons in 2025, up from 254 tons in 2024 (fact, same report). The take starts when that tonnage halves. Measure CS is a general tax, so the Council directs it.
Not used, one line each
- Measure GS for beds. The initiative limits the fund to administration, rent assistance, deed-restricted housing and tenancy programs. It bars amendment without a public vote (SMMC 4.90.030, 4.90.060, fact). Use it for the 200 exit rent subsidies instead. Its restricted balance was $33,040,525 on June 30, 2025 (ACFR p.126, fact), against $49.3M reported in Feb 2026 (secondhand).
- General Fund contingency reserve, $63,238,145 (ACFR p.127, fact). Policy holds it at 15%, and paying a yearly cost from it is one-time money.
- $94M unobligated cash (May 26 report p.15, fact). One-time money.
- Human Services Grants, $9,578,506. $1,312,471 already moves into the system of care. The rest serves housed children, seniors and tenants.
- Outreach contracts, $2,110,000. Outreach is how people get into the beds.
- 24/7 shelter line, $600,000. Already moved to The People Concern in July 2026.
- Special Deployments overtime, $1.5M. This pays for event policing through LA28.
- $34.6M of police and fire time. This is an allocation of salaried time, not cash.
- Fire Advanced Provider Unit, $1,428,826. This is street medical response.
- Airport Park consultants, $912,718. The work is tied to the fixed 2028 airport closure.
- Council discretionary funds, $127,653. Too small and one-time.
- Local Solutions Fund, $1,296,779 in FY2026-27. Already spent, as shown above.
- Enterprise and restricted funds. Airport, Big Blue Bus, water, wastewater, Clean Beaches, gas tax and Local Return are bound by Prop 218, FAA rules, state law and their tax terms.
- Realignment revenue above target, $4.8M (secondhand). It is already inside the balanced budget.
- Providence Saint John's fund, $3,458,150. Fully committed and gone by Year 3.
What could not be established
- The adopted FY2026-27 police overtime line. Only the June 2025 plan is published by account.
- The cost of HoST's seven-day expansion and all Public Works homeless-related spending beyond cost center 01500037.
- Whether the $750,000 consultant line is ongoing.
- What the rest of the Local Solutions Fund pays for today. The $1,296,779 FY2026-27 figure is inferred to be that fund from the May 2026 budget changes.
- The current Measure GS balance. The $33.0M audited figure and the $49.3M press figure conflict.
- Whether a City Attorney would treat exit rent subsidies for formerly homeless tenants as GS income assistance.
- How many affordable units $4M a year of Housing Trust Fund loans would produce in Santa Monica.