Mayor Alan Webber and Councilor Michael Garcia, the resolution's sponsor, spoke over each other during a discussion in advance of the vote.
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The 10 shelters at Christ Lutheran Church for people without housing came about through a pilot program partnership with the city and The Life Link.
The resolution calling for more funding for Santa Fe's bicycle and pedestrian infrastructure is now scheduled for a final vote March 27.
Michael Garcia said he learned city officials might pull $30 million from reserve funds and is seeking a process for public input.
Residents' concerns focused on homelessness, drug use and several nuisance properties that were said to be a source of crime.
Santa Fe was granted about $18.9 million from the Legislature for capital projects and the county about $11.4 million.
The special meeting started Wednesday evening and lasted more than seven hours.
Early voting has commenced for City Council races.
"Say no to panhandling," reads a sign the city put up Tuesday morning at the intersection of Cerrillos Road and St. Francis Drive. "Give to local charities."
[Ringside Seat]Santa Fe already has a board of citizens responsible for police conduct. It’s called the City Council.