The shocking news this week that the city of Santa Barbara has spent through all its budget reserves not only re-shapes debate on major policy decisions, but also instantly transforms the race for mayor and three soon-to-be vacant city council seats, as Josh Molina and Sophia Wallace join the genial host in breaking down a big week of City Hall headlines, including a new plan to regulate vacation rentals, and preliminary approval of a major downtown project by the Music Academy that includes suspension of the once-sacrosanct 45-feet building height limit.