CITY OF SANTA MARIA
FY 2023-24 Quarter 2 Financial Report
February 20, 2024
1. Receive and file the Financial Report for the Second Quarter Ending December 31, 2023.
2. Adopt a Resolution Approving Second Quarter amendments to the 2023-24 Budget for personnel and operational
changes.
3. Adopt a Resolution establishing the City of Santa Maria Administrative Leader, Program Leader, and Business
Leader job classes, approving the corresponding job
specifications for each, and approving the updated
comprehensive salary schematic.
Council Action
1. Economic Outlook
2. General Fund & Measure U Rev/Exp Trends
4. Enterprise Funds Rev/Exp Trends
5. Proposed Budget Amendments
Economic Outlook
US Economy continued to grow at a
modest pace, 2023 GDP 2.3%
US Unemployment remained at 3.7%
in January – 24th month below 4
percent
US 2023 Inflation 3.4%, Federal
Reserve is expected to continue to
lower rates into 2026
General Fund & Measure U
Key Revenue Trends
Property Tax
o $8.5% higher than prior year
o On Budget
Sales Tax
o 3.8% lower than last year
o Trending below Budget
➢ Transient Occupancy Tax
o 10.9% lower than last year
o Trending below Budget
➢ Licenses, Permits, & Fees
o 18% lower than last year (FY 22-
23 included higher than average
permitting activity for a large
project)
o 9.6% higher than Budget
Key Expenditure Trends
Police
4.3% under budget, $1.6M
20 Police Officer vacancies, 8
poised to complete academy
Fire
5.8% under budget, $875K
Less Mutual Aid and Capital
Improvement Projects
Community Development
12.1% under budget, $866K
General Plan Update timing of
project
Recreation & Parks
5.2% under budget, $687K
Vacancies and contractual
services timing of projects
MEASURE U FUND
(in millions)
FY 2023-24
Budget
2Q 2024
Percent
Revenue $ 26,886 $ 13,756 51.2%
Expenses
Community Development $ 963 419 43.5%
’ O 189 96 50.9%
Finance 3 - -
Library 1,232 564 45.8%
Recreation & Parks 3,692 1,463 39.6%
Fire 21,449 6,753 31.5%
Police 13,090 6,085 46.5%
Total Expenses $ 40,618 $ 15,380 37.9%
Enterprise Funds
Water & Wastewater
• Water Revenue 8.9% or $2.4M
increase due to higher sales of
metered water.
• Expenses are 11% lower than
budget due to vacancies and delay
in ongoing maintenance projects
and contractual services.
• Central Coast Water Authority
payment increased by $1M
compared to last year.
Solid Waste
• 8.2%, $2.9M under budget
Due to timing of significant
Capital Improvement Projects
Public Transit
• Santa Maria Regional Transit
and Breeze Transit systems
are Funded by Federal and
State funds.
• Farebox ratio was 12.1%,
$292,300, $5,700 higher
than prior year through Q2.
Proposed Budget Amendments
PROPOSED BUDGET AMENDMENTS
Fund
2023-24
Revenues
2023-24
Expenditures
Net Impact to
2023-24 Fund
Reserves
Annualized
Ongoing
Fiscal Impact
General Fund $ - $ 916,900 $ (916,900) $ 3,499,200
Water Fund - 70,500 (70,500) 281,600
Wastewater Fund - 154,700 (154,700) 218,700
Solid Waste Collection
Fund
- 10,400 (10,400) 41,400
Solid Waste Disposal Fund - 10,400 (10,400) 41,400
Northwest Landscape
District
- 22,500 (22,500) 89,850
Insurance Fund - - - 94,700
Citywide Total $ - $ 1,185,400 $ (1,185,400) $ 4,266,850
Budget Amendments (annualized $)
• City Attorney’s Office
⁓ $397K General Fund: 1.0 FTE Deputy City Attorney/City Prosecutor position ⁓ $95K Insurance Fund (funded by General Fund and Enterprise Funds) 1.0 FTE Confidential Technician II
• City Manager’s Office
⁓ $0 General Fund: ($240K offset by Chamber of Commerce Contract reduction of $222K) 1.0 FTE Economic Development Manager
⁓ $690K General Fund (previously funded by ARPA): 3.0 FTE Confidential Technician I/II and 2.0 FTE Business Program Leader
Budget Amendments (annualized $)
• Community Development Department
⁓ $214K General Fund: 1.0 FTE Deputy Building Official
• Finance Department
⁓ $189K General Fund (previously funded by ARPA): 2.0 FTE Confidential Tech I
• Fire Department
⁓ $1.4M General Fund: 9.0 FTE Firefighter
Budget Amendments (annualized $)
• Recreation & Parks
⁓ $500K General Fund: water, refuse, sewer operating expenditures for irrigation and waste removal from basins and parks
⁓ $157K General Fund: 1.0 FTE Senior Park Services Officer ⁓ $90K Special District Fund: 1.0 FTE Account Clerk I/II • Utilities
⁓ $177K Wastewater Fund: 1.0 FTE Wastewater Supervisor
⁓ $100K Wastewater Fund: Vehicle Purchase
⁓ $240K Water Fund: 1.0 FTE Water Resources Manager
⁓ $125K Water, Wastewater, Solid Waste: 1.0 FTE Business Program Leader Reclassification of Management Positions
• Establish three new classifications of Administrative Leader, Program Leader, and Business Leader.
• This action does not increase number of FTE.
• Business Program Leader positions will be transitioned into the newly established classifications to better
align position requirements with operating needs and
enhance clarity within the organizational structure.
• No immediate fiscal impact.
1. Receive and file the Financial Report for the Second Quarter Ending December 31, 2023.
2. Adopt a Resolution Approving Second Quarter amendments to the 2023-24 Budget for personnel and operational
changes.
3. Adopt a Resolution establishing the City of Santa Maria Administrative Leader, Program Leader, and Business
Leader job classes, approving the corresponding job
specifications for each, and approving the updated
comprehensive salary schematic.
Council Action