After backlash from businesses in the Old Town area of Goleta, city officials are hoping to address concerns of declining sales with grants for local shops.

On Friday, City Manager Robert Nisbet announced that the City of Goleta had raised $125,000 for businesses along Hollister Avenue.

“Sometimes I think the small things matter. They’re not big grants, but I do think they go a long way with some of our smaller businesses and businesses that have been there a long time that we want to keep in Old Town,” Nisbet said.

The street underwent a restriping project in 2024 that changed the traffic lanes, added bike paths and changed street parking to back-in parking. Since then, local business owners have complained about more vehicles and less foot traffic for sales.

The news was shared Friday during the South Coast Chamber of Commerce’s State of the City luncheon, where mayors and officials from the cities of Santa Barbara, Goleta and Carpinteria spoke to members of the business community at the Hilton Santa Barbara Beachfront Resort.

Despite the turbulent economic news on the national stage, the local chamber of commerce tried to assure local businesses and public officials that they are in this together.

Kristen Miller, CEO and president of the chamber, declared that disruptions occurring at the federal level were just that — disruptions.

“Where we do have control is how we respond. That’s what we’re doing here today — to present a clear understanding of the challenges, put forth solutions and bring everyone together in bringing those solutions to reality,” Miller said. “The economy is uncertain, but the chamber is not.”

Miller added that in March the chamber launched a strategic planning process focusing on three areas that are vital to the growth of the region: economic development, workforce development and workforce housing.

“We all know that housing remains one of the biggest challenges of our region. It’s not just about affordability; it’s about accessibility,” Miller said. “We’re committed to advocating for policies and projects that increase housing options, making it feasible for workers to live where they work.”

Representing the City of Santa Barbara was Mayor Randy Rowse, who joked that he was going to discuss the inter-city tariff program.

During his speech, Rowse discussed Measure I, which was passed by Santa Barbara voters in November 2024. The new tax officially went into effect on April 1.

Rowse also discussed the status of State Street in downtown Santa Barbara, which remains partially closed to traffic. He announced that the city will work alongside the new Downtown Santa Barbara Improvement Association to revitalize State Street.

“Santa Barbara has already begun moving to reimagining a return of a strong and vibrant city center,” Rowse said.

On housing, Rowse referenced multiple projects, including a development project at La Cumbre Plaza that will add 1,127 units to the city. He also mentioned an affordable housing project on Grand Avenue made up of 30 new market-rate and affordable units.

Rowse also announced that as chair of the Santa Barbara County Association of Governments, he is preparing to travel to Sacramento to secure funds for the last stage of the Highway 101 rewidening project.

Kelly McAdoo, city administrator for Santa Barbara, said that even though the new sales tax is now in effect, the city is expecting a $7 million shortfall in the budget. The tax went into effect in April, so the city did not expect it to help balance this year’s budget.

However, McAdoo said the city expects a balanced budget by next year.

She explained that the additional funds from Measure I will allow the city to unfreeze positions in the Santa Barbara Police Department, keep local libraries open seven days a week, and fund programs for housing and homelessness.

“Over the past few years, a lot of homeless services contracts have been funded with one-time dollars, from stimulus money, and so if we hadn’t had Measure I it would have been a real challenge to grow out and fund those services on an ongoing basis, which is really important,” McAdoo said.

She added that the city is planning to reduce street work over the next few years to have more money to complete construction of the new police building and renovations at Dwight Murphy Field.

She also touched on the potential of losing federal funding, saying that the city receives $1 million each year for services.

In Goleta, Mayor Paula Perotte said the future of the city is “very strong.”

She said that one of the duties of local government is safety. She declared that the city has invested $4 million in policing over the past five years, and the city has seen a drop of 15% in crime, such as aggravated assault, burglary, robbery and theft.

During a discussion of city managers, Nisbet said that revenue from property taxes is slightly up for the current year, but the sales tax is “flat.” Additionally, revenue from the transient occupancy tax is slightly down this year.

Nisbet said that could be a sign of people buying fewer luxury goods and traveling less, but he did not want to predict what it means for the long term.

Michael Ramirez, city manager for Carpinteria, said the city has been focused during the past year on saving and bringing in grants.

He said the strategy has allowed Carpinteria to focus on projects that need attention, which he compared to leaky roofs. If the city waits to fix them, they will cost more money in the long run.