By Jorge Casuso

September 26, 2025 -- The City Council on Tuesday will explore options that give the City more control over neighborhood groups -- which represent more than 50,000 residents -- and the information they disseminate.

The three options range from resurrecting the City's mailed magazine, "Seascape," at a cost of $200,000 a year, to providing fee waivers and co-sponsoring neighborhood events and activities.

A third option would provide modest funding based on the number of households within a neighborhood's boundaries, while penalizing groups that "engage in political endorsements" by making them ineligible for the program for five years.

"Santa Monica’s approach to neighborhood funding is unusual relative to peer cities," City staff wrote in a report to the Council that looked at practices in Mountain View, Palm Springs and West Hollywood.

"These models reflect a broader trend," staff wrote. "Cities are shifting toward event-based support, reimbursement systems, and clear guardrails, rather than the broad and relatively higher direct funding seen in Santa Monica."

The Council suspended the program -- which provides $7,000 in funding per group -- after members of the super-majority noted that a least two of Santa Monica's seven neighborhood groups had engaged in political activities by endorsing Council candidates.

The two groups, Northeast Neighbors and Friends of Sunset Park, are among five groups with a tax status that allows them to engage in political activities using non-City funds.

"This is about ethical government," said Dan Hall in an unusual press release issued by the three sponsors of the motion to explore ways to reform the City's policy for granting “official” status to neighborhood groups.

"We're seeking to reform official City recognition and add common-sense guardrails to prevent public funds from being used to quietly subsidize partisan political activity," said Hall, who was part of a Council slate opposed by the two groups.

The City's Neighborhood Organization Grant Program (NGP) "allocates up to $7,000 annually per group for outreach, events, and communications," according to the staff report.

"Allowable uses include newsletters, community meetings, and civic activities," staff wrote, noting that "recipients must disclaim on their websites that City funds are not used for political purposes."

The first option the Council will consider Tuesday would "reinstate Seascape magazine, provide an annual City-funded mailer for each recognized neighborhood group, and / or maintain City communication platforms for compliant organizations."

It also could consider providing each recognized neighborhood group with one annual City-funded postcard mailer at an estimated cost of $50,000 a year.

The second option would provide grant funding to each recognized participating group "based on the number of households in the boundaries of each organization."

Participating groups must agree to use the City funds on "neutral civic activities" and would establish "a five-year program ineligibility penalty (including removal from City publications) for groups engaging in political endorsements."

The third option provides "in-kind support such as fee waivers for neighborhood events and co-sponsorship of eligible activities."

It also could "expand voter engagement activities through the reinstatement of City-sponsored election forums."

Staff notes that the proposed options can be "pursued individually or combined to create a comprehensive framework that balances civic engagement, accountability, and clear boundaries between civic and political activity."