May 23, 2017 -- With pension costs poised to drive it into the red and ambitious capital projects requiring huge chunks of money, the City of Santa Monica is facing a reality seemingly far-fetched for such a popular and prosperous seaside enclave: It is starting to run short of revenue.

The City’s proposed 2017-2019 biennial budget unveiled last week totals a record $1.57 billion, or 25 percent more than its predecessor.

But total revenue in the budget increases at only half that amount, leaving the City with a $134.8 million gap it proposes to fill with an almost $77 million bond and tapping the fund balance and reserves.

The record budget goes to the City Council for study sessions tonight as part of its regular Tuesday meeting, and again on Wednesday.

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