CITY OF SANTA MARIA
FY 2023-24 Quarter 3 Financial Report
May 7, 2024
1. Receive and file the Financial Report for the Third Quarter Ending March 31, 2024.
2. Adopt a Resolution Approving Third Quarter amendments to the 2023-24 Budget for operational changes.
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 slowed down to 1.6% in
the first three months of 2024,
compared to Q3 4.9% and Q4 3.4%
growth in 2023
US Unemployment remained at 3.8%,
a narrow range from 3.7% to 3.9%
since August 2023
US 2024 Q1 Inflation is at 3.5%,
Federal Reserve is expected to
continue to lower rates into 2026
General Fund & Measure U
Key Revenue Trends
Property Tax
o 7.5% higher than prior year
o $990k higher than last year
Sales Tax
o 5.8% lower than last year
o $1.4m lower than last year
➢ Transient Occupancy Tax
o 7.2% lower than last year
o $200k lower than last year
➢ Licenses, Permits, & Fees
o 10.5% lower than last year
o $325k lower than last year
Key Expenditure Trends
Staffing:
6.7% under budget through Q3 due to vacancies primarily in the Police Department
Contracts:
$2.2 million under budget primarily due to timing of the General Plan project. The funds will be carried forward into the next fiscal year.
MEASURE U FUND
(in millions)
FY 2023-24
Budget
3Q 2024
Percent
Revenue $ 26,886 $ 20,036 74.5%
Expenses
Community Development $ 963 632 65.6%
’ 189 129 68.3%
Finance 3 - -
Library 1,232 851 69.0%
Recreation & Parks 3,692 2,135 57.8%
Fire 21,449 9,807 45.7%
Police 13,090 9,092 55.8%
Total Expenses $ 40,618 $ 22,646 55.8%
Enterprise Funds
Water & Wastewater
• Water Revenue 16% or $6.4M
increase due to higher sales of
metered water.
• Expenses are $2.9M higher than last
year due to increase in debt service
and payments to the Central Coast
Water Authority.
• Operating expenses are 17% under
budget due to vacancies and timing
of maintenance and contractual
agreements.
Solid Waste
• Revenues are exceeding
expenditures by $1.3M
• Operating expenditures are
$3.7 M or 10.7% under
budget.
Public Transit
• Santa Maria Regional Transit
and Breeze Transit systems
are Funded by Federal and
State funds.
• Farebox ratio was 9.4%,
$446,500, $22,100 higher
than prior year through Q2.
Proposed Budget Amendments
Budget Amendments (annualized $)
• City Manager’s Office
⁓ $94,700K General Fund: 1.0 FTE Confidential Technician, IT Services • Police Department/Business Equipment Fund
⁓ $100,000, increase appropriations within the Business Equipment Fund to accelerate purchase of a Crime Lab Full Spectrum Imaging System ⁓ $58,307, transfer from General Fund (funded by Police Department current fiscal year salary savings)
1. Receive and file the Financial Report for the Third Quarter Ending March 31, 2024.
2. Adopt a Resolution Approving Third Quarter amendments to the 2023-24 Budget for operational changes.
Council Action