Part II : Mayor Chelsea Byers greets all at annual State of the City event.

Good afternoon –

Thank you to the Chamber of Commerce, especially the Board Chair, Dr. Raja Sannidhi, and, the Chamber CEO, Genevieve Morrill, for bringing us together today and making this event possible. I want to especially recognize Genevieve for her many years of service to this organization. I’m sure over the course of the next several months we will have many opportunities to recognize and celebrate her achievements, but I want to take this opportunity to express my gratitude for all she has done to support the business community in West Hollywood. Thank you for your leadership and dedication to our community and we look forward to continuing to work with you and the Chamber on many important initiatives moving forward.

The theme of today’s event is “Who’s in your orbit?” – And we are exploring how our community is connected. In West Hollywood, we understand that we exist within the ecosystem of the greater Los Angeles area. Many of the social and economic changes we experience are impacted by regional factors. For better or for worse, we don’t exist in a silo outside of this context. However, as we reflect on the City’s 40th anniversary this year, we are highlighting and paying tribute to the many ways in which West Hollywood is different. The ways in which West Hollywood has made a name for itself, created a brand, and developed an economic engine, that allows us to do things differently.

In particular, one of the most important values we hold in West Hollywood is providing social services to our most vulnerable community members. Almost exactly 40 years ago, in July 1985, the City of West Hollywood began contracting with nonprofit organizations to operate social services programs for community members. The programs funded by the City embody the core values established with cityhood, reflecting the commitment to supporting those in need, strengthening community stability, and enriching the quality of life of all community members.

The City currently contracts for 29 service programs. The programs address a range of community needs, including food and shelter, legal services, mental health resources, case management, harm reduction and substance use recovery, preventing and addressing homelessness, and job training and placement. The community members served include people living with HIV/AIDS, older adults, the LGBTQ+ community, Russian-Speaking community members, people living with disabilities, the unhoused community, and many others.

You may have heard all of this before. But I would like to provide some additional context that was recently presented to the Human Services Commission on the impact these programs have in our community. In the first six months of the 2024-2025 contract year, from October 1, 2024 through March 30, 2025, the City’s contracted social services agencies and programs collectively served over 5,700 West Hollywood community members. This figure is not unduplicated, as individuals may access multiple programs across different agencies. To give some specific examples of what this means:

Each of these numbers represents an individual whose life was changed or even saved by the social services provided by the City.

As we look forward, the City Council will be approving new three-year agreements for social services programs to begin this October. As part of the City’s response to homelessness, we also just gave direction to initiate a Coordinated Response Framework that formalizes the City’s Multidisciplinary Team and strengthens interagency alignment. We are looking at ways to enhance communication and data sharing across departments and strengthen collaboration between public safety partners, social services partners, and County partners to continue to provide lifesaving supports for the most vulnerable members of our community.

Also, earlier this month, we reached a huge milestone in the completion of construction at the Holloway Interim Housing Project. This program will provide critical interim housing and supportive services to individuals experiencing homelessness, helping them transition into permanent housing. Our community partner, Ascencia, hopes to begin moving people in to this new space later this summer.

And, to bring all this back to our theme of interconnectedness, the City is able toprovide these services because of our economic success. Our robust economic foundation enables us to provide these essential, life-saving services to our community members.

As our City Manager will further detail, the rate of revenue growth has moderated; however, the City continues to see revenues increase, in large part due to the continued success of the businesses in the community. Sales tax revenues have grown significantly and are now the City’s largest source of revenue. The transient occupancy tax revenues have rebounded and exceeded pre-pandemic levels in recent years. These revenues are the backbone of the City’s financial strength. In recent years, we have also begun to see new development agreement revenues, primarily from billboards, which have grown significantly and are projected to reach $12.6 million in the upcoming fiscal year.

At the same time, the City continues to support a vibrant and resilient business community. Last year, we launched a comprehensive economic study to better understand local needs and identify strategies for long-term success. In alignment with that work, the City Council recently approved the formal designation of the Rainbow District—an iconic destination that celebrates LGBTQ+ history, strengthens tourism, and supports local businesses. We have also continued to expand and improve some of our hallmark events, such as WeHo Pride and Halloween Carnaval, and are in the process of studying the economic impacts of these large-scale events. These efforts advance key goals like boosting year-round tourism, activating our streets, and supporting pop-ups and creative uses of space.

This is a tough time, with so much uncertainty for so many across the business community – the fires, tariffs, the immigrant workforce facing real threats, and the broader consumer base making hard decisions about where to spend their resources in the face of growing economic uncertainty. When a City can support the needs of people, and work to make life more affordable through access to affordable housing, the transportation that suits them, and the services that support them — we create more economic freedom for the people who drive this economy forward. We understand there are ongoing challenges, but we look forward to the work ahead in support of our businesses and the local economy.

While some of our neighboring cities face challenging economic outlooks and are being asked to cut millions of dollars in funding, some even resorting to layoffs, West Hollywood is extremely fortunate to be in a much stronger position. Because of this position, we are able to help more people, to provide more programming, tohave grand ideas for upcoming major sporting events in the region that will establish West Hollywood as an arts and culture hub for residents and international visitors, and to maintain our identity as a safe space for diverse groups of people to live, work, and play. Our City’s budget is a statement of our values, helping us maintain an inclusive community and provide the necessary resources to support people. This is only possible through the partnerships and collaboration with our City and business community.

Thank you for your time, for your many contributions to our community, and I look forward to continuing our efforts to make our City a better place for everyone.