The Santa Monica City Council Tuesday approved a resolution declaring fiscal distress — with officials saying the move is necessary to address financial strains from a reduction in tourism tax revenue and an increase in liability costs.

In a unanimous vote, council members approved the resolution, which city officials said will serve as an official document to better position the city for future grant funding and interactions with regulatory and governmental entities. City Manager Oliver Chi emphasized that the city’s financial situation is “certainly serious.”

“This council wrestled with really important decisions during our most recent budgetary discussion just a few months ago, and the resolution that’s before the council tonight really is intended to articulate and capture in one pla

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