City Council — January 20, 2026

Meeting Summary

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Staff presented a $105 million tax-exempt bond request for the Hancock Terrace Apartments project.
Officials confirmed the City would not assume financial responsibility for the debt.
The public hearing concluded without recorded public comment.
Council adopted the resolution regarding the bond issuance.

Staff presented a structural deficit of $25.1 million for the fiscal year 2025-26.
Proposed amendments included $12.5 million in reductions via vacant positions and project delays.
Council members questioned potential impacts on service levels for first responders.
The motion to receive the analysis and adopt the budget amendments passed.

The meeting began with the reading of proclamations. Council Member Flores presented a proclamation recognizing the week of January 18 through January 24, 2026, as Respect for Life Week. The proclamation was accepted by John Lundgren on behalf of Central Coast Citizens for Family and Life. Council Member Escobedo presented a proclamation recognizing January 2026 as Human Trafficking Awareness Month. Anne McCarty of the Santa Barbara County Human Trafficking Task Force accepted the proclamation. Staff from the Recreation and Parks Department presented the winners of the 30th annual Light Sites and Holiday Nights contest. Additionally, the Winter 2026 class of Hometown Heroes was recognized with certificates and commemorative banners.

During the public comment period, multiple speakers addressed the Council regarding immigration enforcement. Speakers urged the Council to establish an Immigration Ad Hoc Committee, request public information regarding Immigration and Customs Enforcement (ICE) arrests within city limits, and adopt resolutions supporting the immigrant community. Speakers cited various statistics regarding ICE activity in the region. One speaker addressed issues concerning mobile home housing, requesting a rent stabilization program and protections for senior parks. In response to the public comments, Council Member Aguilar-Hernandez requested that an immigration resolution be added to a future agenda. The City Manager indicated that staff would draft the resolution for a February meeting.

The Council addressed the Consent Calendar. Council Member Flores requested discussion regarding Item 7D2, which concerned the adoption of a resolution accepting a public right-of-way dedication in lieu of payment for a development site. Staff provided clarification regarding the dedication, sidewalk design, and future improvements. The remainder of the Consent Calendar items were moved, seconded, and approved.

A public hearing was held to consider the issuance of a bond for the Hancock Terrace Apartments project. The Director of Finance presented information regarding a $105 million tax-exempt bond request by Step Up Housing, administered through the California Municipal Finance Authority. Staff noted that the City would not be financially responsible for the debt. The hearing was opened and closed with no public comment. The Council adopted the resolution regarding the hearing. The motion passed.

The Council considered the Fiscal Year 2025-26 Budget Rebalancing Analysis. Staff presented a structural deficit of $25.1 million and proposed budget amendments totaling $12.5 million. The proposal included $8.7 million in ongoing reductions through the holding of vacant positions and a hiring chill, and $3.8 million in one-time reductions by delaying capital projects. Council members questioned the potential impact on service levels, particularly regarding first responders and public safety exemptions. Discussion included comments on past budget decisions and the prioritization of employee support and community services. A motion was made and seconded to receive the analysis and adopt the budget amendments. The motion passed.

The City Manager reported on ongoing budget reviews and confirmed that the immigration item would be brought forward for discussion on February 3. Following this, Council members provided oral reports detailing community events and meetings attended during the preceding weeks. The meeting was adjourned.