That didn’t last long.
In the latest shake-up to leadership at Santa Barbara City Hall, the just-hired deputy City Administrator Anthony Valdez is resigning at the end of July.
Valdez was hired in August of 2025.
Valdez apparently told City Administrator Kelly McAdoo that he was willing to give up his job to help with the city’s budget problems. Valdez earns between $228,000 and $278,000 annually, according to the range for his position.
McAdoo told members of the Santa Barbara City Council on Tuesday.
“Following the City’s budget hearing a couple of weeks ago, Deputy City Administrator Anthony Valdez approached me with a cost-savings proposal that entails him resigning his position with the City,” McAdoo wrote in an email to the council. “This will allow us to hold the position vacant and to do some other restructuring in the City Administrator’s Office to generate additional cost savings.”
McAdoo said that she is “incredibly grateful” to Valdez for his “thoughtfulness and leadership” to help with the budget situation.
“He will stay with us until the end of July, which will allow him to finish a few key initiatives for the City, including the City’s opportunity zone application, annual evaluations of his team, and release of the Economic Development RFP.”
The loss of Valdez comes amid deep tensions at Santa Barbara City Hall over the city budget. The city has burned through its budget reserves, essentially savings, and has dipped into its emergency reserve funds.
The budget has sparked arguments between council members in public and mayoral candidates Kristen Sneddon and Eric Friedman have brought their election battle to City Hall, with each taking jabs at the other’s financial prowess.
The council has fought over whether to fund three police officer positions, how much to fund the city Housing Trust Fund, and even whether to allow and profit off of psilocybin. City officials informed the council on Tuesday that psilocybin is a Class 1 narcotic and federally illegal.
“There’s no basis or way we could decriminalize it, so we can’t tax it or make a revenue source,” said City Attorney John Doimas.
Cardrooms are also illegal. The city of Ventura was able to approve cardrooms during a brief, year-long allowance, but the current state ban lasts through 2043.
The council met in a special meeting Tuesday to make final budget recommendations before formally voting on the budget next week. Although there were a couple of flare-ups, the overall tenor of the meeting was more respectful than the recent budget hearings.
The situation, however, remains bleak.
Valdez’s resignation comes after the City Council earlier in June rejected a proposal by McAdoo to hire a management fellow at a cost of $140,000 annually. McAdoo had already advertised the position, but the council said it would be an inappropriate expenditure during a budget crisis.
The City Administrator’s office has experienced turnover in recent years. Jason Harris was hired as the city’s economic development director in 2020, but then was effectively fired when funding for his position was eliminated from the budget.
McAdoo said Valdez helped establish the new Office of Housing and Community Vitality and was able to hire a Housing and Homelessness Manager.
Valdez previously worked as assistant city manager for the City of Bakersfield. When he was hired a year ago, he said in a press release:
“I’m honored to join the City of Santa Barbara at such a pivotal time,” Valdez said. “This community is known for its beauty, vibrancy, and civic spirit—and I’m excited to help shape a future that reflects those values.”
