PROVIDE YOUTH OPPORTUNITIES Assist Recreation & Parks Department in assessment of fees analysis for recreation programs including youth opportunities.
PROVIDE PUBLIC SAFETY RESOURCES Monitor Measure U expenditures and prepare audited financial statements to ensure Measure U dollars are spent within the Council adopted policies.
ESTABLISH A STAFFING PLAN Develop staffing plan for Finance Department for post Enterprise Resource Planning System Implementation.
ACCOMPLISHMENTS
• Finalized selection of the new ERP system and awarded contract to selected vendor in the multi-year process to update this backbone software, and in alignment with Smart City, Safe City.
• Identified Business Process Improvements to be implemented with through the ERP • Caught-up Financial Reporting to current post COVID-19 pandemic. • Continued to increase transitioning utility billing customers to online options.
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• Supported business community by continuing to improve online payment options and paperless business license application capabilities.
PERFORMANCE/WORKLOAD MEASURES
PERFORMANCE MEASURE ACTUAL
2020-22
ESTIMATED
2022-24
PROJECTED
2024-26
DEMAND/WORKLOAD
Payroll Checks 36,889 40,847 43,706
Business Licenses 11,221 11,400 11,500
Accounts Payable Checks 15,492 16,556 17,383
Purchase Orders 5,360 6,781 7,798
EFFECTIVENESS/EFFICIENCIES
Utility Bills Processed 548,520 549,396 554,447
DEPARTMENT ORGANIZATION
A complete schedule of the department’s positions, a summary of changes, and a detailed explanation of position changes can be viewed at Personnel - Finance on page 179.
BUDGET OVERVIEW
The Finance Department is an internal service department that supports all City departments. Major activities include financial reporting; annual compliance; revenue and appropriation management; annual budget preparation; purchasing; grant administration; utility billing; payroll; accounts payable; real property management; treasury and investment functions; and financial management system administration. In all, the Department emphasizes the delivery of service in a timely, cost-effective, and courteous manner, relying on high-performing standards as the norm. The Department consists of two divisions encompassing two major subprograms: Finance and Utility Billing. The Utility Billing Division’s budget unit reflects the personnel complement of the Division; however, the funding sources are the Water Resources funds and Solid Waste funds. Finance is responsible for obtaining audit services annually for Measure U.
The following budget schedules exclude the allocation of the department produced by the Cost Allocation Plan to provide a more informative picture of the department’s operating costs within each fund; however, it is important to note that the Finance Department’s budget includes operating and capital Transfers Out, which are non-departmental in nature.
Director of
Finance
Administration
Accounting
Payroll
Budget
Grants
Revenue
Business
License
Utility Billing
Customer
Service
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Budget Summary by Expenditure Category - All Funds
Actual
FY 2021-22
Actual
FY 2022-23
Adopted
FY 2023-24
Proposed
FY 2024-25
Proposed
FY 2025-26
EXPENDITURE CATEGORY
Salaries & Benefits $ 1,886,793 $ 2,406,418 $ 3,298,056 $ 3,967,603 $ 4,210,461 Services & Supplies 888,485 910,457 1,242,911 1,067,867 1,067,867 Capital & Outside
Agencies 980,470 1,049,856 4,041,630 969,040 969,040
Debt Service 268,778 400,367 266,912 266,912 266,911
Transfers 2,270,039 3,051,220 12,551,815 18,464,433 6,973,210 Total Budget $ 6,294,565 $ 7,818,318 $ 21,401,324 $ 24,735,855 $ 13,487,489
Budget Summary by Fund
Actual
FY 2021-22
Actual
FY 2022-23
Adopted
FY 2023-24
Proposed
FY 2024-25
Proposed
FY 2025-26
FUND
001 - General Fund $ 5,290,042 $ 6,817,156 $ 8,319,559 $ 15,203,664 $ 12,229,624 002 – Water 167,183 331,116 498,134 390,876 412,394
003 – Solid Waste
Collection 280,382 278,735 259,003 336,840 357,052
004 – Wastewater 280,582 278,820 257,613 335,450 355,662 011- Measure U Fund 108,814 - 2,600 2,757 2,757
040 – Economic
Development - 60,000 130,000 130,000 130,000
076 – Local Economic
Augmentation Fund - - 8,861,825 8,336,268 -
801 – Capital Projects-
General 167,561 52,491 3,072,590 - -
Total Budget $ 6,294,565 $ 7,758,318 $ 21,401,324 $ 24,735,855 $ 13,487,489
Budget Summary by Program - All Funds
Actual
FY 2021-22
Actual
FY 2022-23
Adopted
FY 2023-24
Proposed
FY 2024-25
Proposed
FY 2025-26
PROGRAM
General Government
0510 – Administration $ 4,232,790 $ 5,477,820 $ 18,321,911 $ 20,936,825 $ 9,470,289 0520 – Finance 1,224,814 1,391,827 1,932,063 2,603,107 2,759,335 0530, 0533, 0534 – Utility
Billing 728,147 888,671 1,014,750 1,063,166 1,125,108
0557 – Economic
Development - 60,000 130,000 130,000 130,000
0590 – Measure U 108,814 - 2,600 2,757 2,757
Total General
Government $ 6,294,565 $ 7,818,318 $ 21,401,324 $ 24,735,855 $ 13,487,489 Total Budget $ 6,294,565 $ 7,818,318 $ 21,401,324 $ 24,735,855 $ 13,487,489
DIVISION/PROGRAM BUDGETS
The Finance Department operates in a slightly different organizational structure than that represented by the accounting and budget structure . Finance operations are organized in six divisions:
Administration, Accounting, Budget, Payroll, Grants, Revenue, and Utility Billing.
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ADMINISTRATION
This Administration division provides administrative support, oversight , and leadership to all divisions of the Finance Department and ensures that the department’s general operations are aligned with the City’s Strategic Plan, goals, and objectives.
Administration (0510)
Actual
FY 2021-22
Actual
FY 2022-23
Adopted
FY 2023-24
Proposed
FY 2024-25
Proposed
FY 2025-26
001 – GENERAL FUND
Salaries & Benefits $ 457,590 $ 599,683 $ 764,356 $ 743,729 $ 768,417 Services & Supplies 379,915 423,547 697,198 492,868 492,868 Capital & Outside Agencies 808,091 950,512 969,040 969,040 969,040 Debt Service 266,912 400,367 266,912 266,912 266,911
Transfers 2,163,910 3,051,220 3,689,990 10,128,008 6,973,053 Total General Fund $ 4,076,418 $ 5,425,329 $ 6,387,496 $ 12,600,557 $ 9,470,289
011 – MEASURE U FUND
Services & Supplies $ 2,685 $ - $ 2,600 $ 2,600 $ 2,600 Transfers 106,129 - - 157 157
Total Measure U Fund $ 108,814 $ - $ 2,600 $ 2,757 $ 2,757
040 – ECONOMIC DEVELOPMENT
FUND
Services & Supplies $ - $ 60,000 $ 130,000 $ 130,000 $ 130,000 Total Economic Development Fund $ - $ 60,000 $ 130,000 $ 130,000 $ 130,000
076 – LOCAL ECONOMIC
AUGMENTATION FUND
Transfers $ - $ - $ 8,861,825 $ 8,336,268 $ -
Total Local Economic Augmentation
Fund $ - $ - $ 8,861,825 $ 8,336,268 $ -
801 – CAPITAL PROJECTS-GENERAL
FUND
Capital & Outside Agencies $ 154,506 $ 52,491 $ 3,072,590 $ - $ - Debt Service 1,866 - - - -
Total Capital Projects-General Fund $ 156,372 $ 52,491 $ 3,072,590 $ - $ - Total Administration $ 4,341,604 $ 5,537,820 $ 18,454,511 $ 21,069,582 $ 9,603,046
FINANCE
Finance analyzes the City’s financial position and develops short - and long -range plans to ensure financial viability. It provides high -quality financial reporting and budget presentations; advises City management on business factors affecting the City’s fiscal environment; ensures the security and proper disbursement of funds through effective appropriation management; administers the business license and transient occupancy tax ordinances including annual renewals, new licenses, inquiries, and coordination with State agencies; provides staff training to ensure that the divisions’ technical capabilities remain current; develops and updates effective administrative policies to maintain internal controls; provides support to City departments to obtain the materials and services needed, within budget, and in compliance with procurement policies; and, maximizes investment earnings while safeguarding public funds as established by the City’s Investment Policy and State law.
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The Accounting Division in Finance safeguards the City's assets and seeks to provide accurate and timely financial data. It is the responsibility of the Accounting function to direct and monitor all financial transactions recorded in the accounting system in accordance with generally accepted accounting principles and guidelines. It reports on the financial position of the City and its departments and coordinates and prepare s the City's annual financial statements. The Accounting function houses three major programs:
• General Accounting reviews analyzes and records financial data. This section is also responsible for the month -end and year -end reconciling and closing of accounting records. General Accounting prepares the City’s Annual Comprehensive Financial Report (ACFR). • Accounts Payable is responsible for producing accurate and timely payments to the City's vendors while safeguarding City assets through effective internal controls. • Accounts Receivable/Collections strengthens cash inflows through the creation of invoices, the monitoring of past due accounts, and the recovery of outstanding payments owed to the City.
The Budget Division works with departments citywide to prepare the Biennial budget and monitors budget in accordance with the City policies. The division monitors, analyzes, and reports on the City’s finances and operational performance through a variety of methods and output, including:
• Development, in tandem with City Departments, of the Annual Budget, or Biennial Budget with a comprehensive mid-cycle update and formal re-adoption by Council of the second year of the biennial budget. The resulting budget documents include a Budget in Brief and a Budget Book that provides significant detail about the City’s financial outlook, budgeting process and projection methodologies, and departmental personnel, operations, programs, services, strategic goals, and performance measures.
• Compile and present the Annual Fees and Charges schedule for Council adoption; the Budget Team also supports departments by conducting studies for fees desired to be adjusted and for which Council approval is required and works with the City Attorney’s Office to ensure that the applicable Municipal Code requirements (Chapter FS) for the adoption or adjustment of fees and charges is adhered to.
• Manage and monitor the Measure U funds, including ensuring that Council’s direction for the allocation of Measure U revenues to spending initiatives is adhered to, and providing details of Measure U activity in the quarterly financial reports.
Prepare and present quarterly financial reports to the City Council that detail the year -to-date financial performance of the City’s major funds, identify and disclose any areas of potential concern to the City’s financial health, and recommend corrective action if appropriate.
The P ayroll Division provides timely and accurate payments to our employees, while maintaining compliance with City policies & procedures, labor agreements, and State and Federal laws.
The Grants Division supports departments citywide with grant applications and reporting requirements.
The Grants Division monitors grant revenues and expenditures and provides them with reporting.
The Revenue Division applies the Santa Maria Municipal Code and City ordinances to ensure equitable and fair application of taxes and fees paid to the City by residents, businesses, and visitors. This Division processes applications for brick -and-mortar, h ome-based, and mobile businesses located inside of Santa Maria’s city limits and businesses located outside of the City but conducting business within the City, such as contractors, nonemergency transportation, and vendors. Business license taxes and transient occupancy taxes are a source of revenue for the City’s General Fund. Effective management of the business license tax revenue collection effort is critical to ensure stable revenues are available to support police, fire, parks, and other public servic es. This Division provides quick and direct support of the business community through various channels, including in -person services at the Finance Department.
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Finance (0520)
Actual
FY 2021-22
Actual
FY 2022-23
Adopted
FY 2023-24
Proposed
FY 2024-25
Proposed
FY 2025-26
001 – GENERAL FUND
Salaries & Benefits $ 1,011,178 $ 1,246,575 $ 1,768,863 $ 2,417,549 $ 2,573,777 Services & Supplies 195,763 98,399 163,200 185,558 185,558 Capital & Outside Agencies 6,683 46,853 - - -
Total General Fund $ 1,213,624 $ 1,391,827 $ 1,932,063 $ 2,603,107 $ 2,759,335
801 – CAPITAL PROJECTS-GENERAL
FUND
Capital & Outside Agencies $ 11,190 $ - $ - $ - $ -
Total Capital Projects-General Fund $ 11,190 $ - $ - $ - $ - Total Finance $ 1,224,814 $ 1,391,827 $ 1,932,063 $ - $ -
UTILITY BILLING
The Utility Billing Division ensures that residential and commercial customers are correctly billed for water, sewer, and refuse service; accurately records revenues and performs all necessary procedures to ensure that the City is fairly compensated for services; and, responds to utility customers’ service needs by taking necessary actions on all service and billing inquiries.
Utility Billing (0530, 0533, 0534)
Actual
FY 2021-22
Actual
FY 2022-23
Adopted
FY 2023-24
Proposed
FY 2024-25
Proposed
FY 2025-26
002 – WATER FUND
Salaries & Benefits $ 21,341 $ 192,962 $ 401,115 $ 285,379 $ 306,897 Services & Supplies 145,841 138,154 97,019 105,497 105,497 Total Water Fund $ 167,183 $ 331,116 $ 498,134 $ 390,876 $ 412,394
003 – SOLID WASTE COLLECTION
FUND
Salaries & Benefits $ 198,310 $ 183,524 $ 181,866 $ 260,478 $ 280,690 Services & Supplies 82,072 95,211 77,137 76,362 76,362
Total Solid Waste Collection Fund $ 280,382 $ 278,735 $ 259,003 $ 336,840 $ 357,052
004 – WASTEWATER FUND
Salaries & Benefits $ 198,374 $ 183,674 $ 181,856 $ 260,468 $ 280,680 Services & Supplies 82,208 95,147 75,757 74,982 74,982
Total Wastewater Fund $ 280,582 $ 278,820 $ 257,613 $ 335,450 $ 355,662 Total Utility Billing $ 728,147 $ 888,671 $ 1,014,750 $ 1,063,166 $ 1,125,108
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GLOSSARY
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OVERVIEW
The following pages present specialized acronyms and terminology used throughout this budget document. The Glossary is divided into two sections: 1) Acronyms - defined to aid the reviewer in reading and understanding the budget; and 2) Terminology - full definitions of the acronyms.
ACRONYMS
Acronym Definition
ACFR Annual Comprehensive Financial
Report
ADA Americans with Disabilities Act
AMCYC Abel Maldonado Community Youth
Center
APCD Air Pollution Control District
ARPA American Rescue Plan Act
BIT Biennial Inspection Terminal Program
CACEO California Association of Code
Enforcement Officers
CAD Computer-Aided Dispatch
CalPERS California Public Employee
Retirement System
CASp Accessibility Certification
CCWA Central Coast Water Authority
CDBG Community Development Block
Grant
CEQA California Environmental Quality Act
CERT Community Emergency Response
Training
CFAA California Fire Assistance Agreement
CHP California Highway Patrol
CMEP Capital/Maintenance/Equipment
Project
CBO Congressional Budget Office
COP Certificates of Participation
COVID-19 Coronavirus Disease 2019
CSMFO California Society of Municipal
Finance Officers
CUPA Certified Unified Program Agency
CY Calendar Year
DARE Drug Abuse Resistance Education
DOF Department of Finance
DIVCA Digital Infrastructure and Video
Competition Act
DTSP Downtown Specific Plan
EIR Environmental Impact Report
EMS Emergency Medical Services
EMT-I Emergency Medical Technician – I
EPA Environmental Protection Agency
ERMAC Exclusive Risk Management
Authority of California
FCC Federal Communications
Commission
Acronym Definition
FDMA Frequency Division Multiple Access
FEMA Federal Emergency Management
Agency
FPPC Fair Political Practices Commission
FTE Full-Time Equivalent
FY Fiscal Year
GAAP Generally Accepted Accounting
Principles
GASB Government Accounting Standards
Board
GFOA Government Finance Officers
Association
GIS Geographic Information Systems
GPS Global Positioning System
GST Gang Suppression Team
GVWR Gross Vehicle Weight Rating
HVAC Heating, Ventilation, and Air
Conditioning
HUD Housing & Urban Development
IPAM Integrated Project Assessment
Model
IRS Internal Revenue Service
IWMF Integrated Waste Management
Facility
LAFCO Local Agency Formation
Commission
LAO Legislative Analyst’s Office
LAWCX
Local Agency Workers’
Compensation Excess Joint Powers
of Authority
LEAF Local Economic Augmentation
Fund
LED Light Emitting Diode
MDC Mobile Data Computers
MOE Maintenance of Effort
MSD Master Special District
NHIS Non-Hazardous Hydrocarbon
Impacted Soils
PDES National Pollutant Discharge
Elimination System
NST Narcotics Suppression Team
OMB Office of Management and Budget
OPEB Other Post-Employment Benefits
OTS Office of Traffic Safety
PARS Public Agency Retirement System
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Acronym Definition
PEG Public, Education, and Government
(public access television)
PLAY People for Leisure and Youth, Inc.
PMS Pavement Management System
POST Peace Officer Standards and
Training
RDA Redevelopment Agency
RFP Request for Proposal
RMS Record Management System
RSTP Regional Surface Transportation
Plan
RWQCB Regional Water Quality Control
Board
SAFER Staffing for Adequate Fire &
Response
SBCAG Santa Barbara County Association
of Governments
SBZ Special Benefit Zone
Acronym Definition
SET Special Enforcement Team
SIR Self-Insurance Retention
SMAT Santa Maria Area Transit
SMBSD Santa Maria-Bonita School District
SMCTV Santa Maria Community Television
SMJUHS Santa Maria Joint Union High School
District
SRS Septage Receiving Station
SRTP Short Range Transit Plan
SSI State Self-Insurance
TDA Transportation Development Act
TOT Transient Occupancy Tax
TPA Third-Party Administrators
USAR Urban, Search and Rescue
WWTP Wastewater Treatment Plant
TERMINOLOGY
Activities
Specific services performed in accomplishing program objectives and goals (see Program).
Ad Valorem Tax
A tax assessed based on the dollar value of an item or activity. Typical examples are property and sales taxes. Ad valorem taxes contrast with per -unit taxes, such as alcoholic beverage and cigarette taxes, which are assessed at a fixed dollar amount per unit purchased.
Air Pollution and Control District
The Air Pollution Control District is a local government agency that works to protect the people and the environment from the harmful effects of air pollution.
Aircraft Rescue and Fire Fighting
Airport rescue and firefighting services are performed for aircraft -type accidents at the Santa Maria Public Airport District.
Americans with Disabilities Act
Enacted on July 26, 1990, the Americans with Disabilities Act gives civil rights protections to individuals with disabilities similar to those provided to individuals based on race, color, sex, national origin, age, and religion. The Americans with Disabilities Act guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, State and local government services, and telecommunications.
Appropriation
An authorization made by the City Council that permits the City to incur obligations and to make expenditures of resources for specific purposes.
American Rescue Plan Act
Signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) provides additional funding to State and local governments. Eligible uses of these funds include revenue replacement due to COVID-19 public health emergency, COVID -19 expenditures and or negative impacts attributed to COVID-19, premium pay for essential workers, and investments in water, sewer, and broadband infrastructure. ARPA funding must be used by the end of calendar year 2024.
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Assessed Valuation
The value established for real property for use as a basis in levying property taxes. For all agencies in the State, the assessed value is established by the county for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under Article XIII of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100 percent of full value. Proposition 13 modified the value of real taxable property for the fiscal year 1979 by rolling back values to the fiscal year 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of two percent. However, increases to full value are allowed for property improvements or upon a change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal. Property taxes for general purposes cannot exceed one percent of the assessed value.
Audit
Prepared by an independent certified public accountant, the primary objective of an audit is to determine if the City's financial statements fairly present the City's financial position and results of operations in conformity with accounting principles generally accepted in the United States of America (USGAAP). In conjunction with performing an audit, independent auditors customarily issue a Management Letter stating the adequacy of the City's internal controls, as well as recommending improvements to the City's financial management practices.
Black Gold
The Black Gold Cooperative Library System, begun in 1964, creates and maintains the online public access catalog in six public libraries, bibliographic records, library automation services, and more.
Block Grant
The Federal grant allocated according to predetermined formulas and for use within a pre-approved broad functional area such as the Community Development Block Grant.
Bonds
A form of borrowing (debt financing), that reflects a written promise from the City to repay a sum of money on a specific date at a specified interest rate. Bonds are used to finance large capital projects such as buildings, parking structures, streets, utility infrastructure, and bridges.
Breeze
The Breeze is an inter -community transit service that began in May 2005. The transit service provides commuter-based general public transportation connecting Santa Maria, Vandenberg Air Force Base, and Lompoc, and in January 2013, began service to Los Alamos, Buellton, and Solvang, as mandated under State and Federal regulations for the transit needs of the northern Santa Barbara County urbanized areas.
Budget
A financial plan for a specified period that matches projected revenues and planned expenditures to municipal services, goals, and objectives. The City uses a budget covering two fiscal years, with actual budget appropriations made annually. All budgeted funds are required to be balanced. A balanced budget means that total anticipated revenues, plus fund balance applied if applicable, must equal the sum of budgeted expenditures for each fund.
Budget Amendment
The City Council has the sole responsibility for adopting the City's budget and may amend or supplement the budget, at any time, after adoption by a majority vote. The City Manager has the authority to approve administrative adjustments to the budget as long as those adjustments would not have a significant policy impact or effect on budgeted year-end fund balances.
Budget Manual
General and specific guidelines that govern budget preparation and administra tion.
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Budget Message
Included in Section A of the budget, the Budget Message provides the City Council and the public with a general summary of the most important aspects of the budget, changes from previous fiscal years, and the views and recommendations of the City Manager.
Business License Tax
A type of excise tax imposed on businesses for the privilege of conducting business within the City. The tax is most commonly based on gross receipts or levied at a flat rate.
Calendar Year
The calendar year starts January 1st and ends December 31st.
California Association of Code Enforcement Officers
The California Association of Code Enforcement Officers is a State -wide organization that exists to promote and advance the profession of code enforcement.
California Environmental Quality Act
A State law that requires public agencies to review projects before approval to identify possible adverse effects on the environment.
California Identification
The State -wide automated fingerprint identification database. Live Scan devices, used to capture fingerprints taken at the time a person is booked, are located in each law enforcement department.
These devices transmit fingerprints taken during the booking process and electronically direct the fingerprints to the State’s fingerprint database.
California Law Enforcement Telecommunication System
The California Law Enforcement Telecommunication System is a high-speed message switching system that became operational in 1970. The California Law Enforcement Telecommunication System provides law enforcement and criminal justice agencies access to various databases and the ability to transmit and receive point-to-point administrative messages to other agencies.
California Public Employee Retirement System
The City contributes to the California Public Employee Retirement System, an agent multiple-employer public employee defined benefit pension plan. The California Public Employee Retirement System provides retirement and disability benefits, annual cost -of-living adjustments, and death benefits to plan members and beneficiaries. The California Public Employee Retirement System acts as a common investment and administrative agent for participating public entities within the State. Benefits provisions and all other requirements are established by State statute and City ordinance.
California Society of Municipal Finance Officers
The California Society of Municipal Finance Officers is a State -wide organization serving California municipal finance professionals. The organization promotes excellence in financial management through innovation, continuing education, and the professional development of its members. The City strives to create a budget document that meets the California Society of Municipal Finance Officers budget award criteria.
Capital Asset
A tangible, fixed asset that is long-term in nature, of significant value, and obtained or controlled as a result of past transactions, events, or circumstances. Fixed assets include land, buildings, equipment, improvements to buildings, and infrastructure s such as streets and other immovable assets. A capital asset is defined as an asset with a useful life extending beyond a single accounting period and $5,000 or more in value.
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Capital Budget
A plan of capital expenditures and the means of financing capital expenditures. The capital budget is adopted as part of the City’s complete two -year budget cycle, including operating and capital outlays.
Capital/Maintenance/Equipment Project
Major construction, acquisition, or renovation activities that add value to the physical assets of the City, or significantly increase the asset's useful life. During the budget preparation process, all City departments are required to submit capital/maintenance/equipment project requests and justifications, assigned by priority, for review. Examples of capital/maintenance/equipment projects are capital equipment that costs $5,000 or more; remodels involving office furniture, repairs, or alterations to a facility or computer program; communications equipment; and assets including land, structures, and improvements. The approved requests are budgeted, as appropriate, in the General Fund Capital Projects, Enterprise, or Internal Service Funds.
Capital Outlay
Expenditures that result in an acquisition of or addition to fixed assets.
Capital Project Funds
This fund type is used to account for financial resources used in acquiring or building major capital facilities other than those financed by Proprietary and Trust Funds.
Carry-over
Expenditure originally planned in the current budget year but because of delays is postponed to the following budget year.
Central Coast Water Authority
The Central Coast Water Authority (CCWA) is a public entity duly organized and existing under a Joint Exercise of Powers Agreement, dated August 1, 1991. CCWA is composed of eight public agency members including the City. Members entered into the Joint Exercise of Powers Agreement to exercise CCWA’s common power to acquire, construct , operate, and maintain waterworks and facilities for the development and use of water resources and water rights including without limitation, works and facilities to divert, store, pump, treat and deliver water for beneficial uses. CCWA's mission is to provide San Luis Obispo and Santa Barbara Counties with reliable, high-quality supplemental water, known as State Water.
Certificates of Participation
A debt instrument, commonly called Certificates of Participation, which provides long -term financing to construct or acquire capital facilities and equipment through a lease (with an option to purchase) or an installment agreement.
City Administrative Memorandums
City Administrative Memorandums are internal procedures established for all City departments to follow as directed by the City Manager. In other organizations, these directives can be found in a policy and procedures manual.
Clean Water Act
The Clean Water Act establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters.
Community Emergency Response Training
The Community Emergency Response Training Program educates people about disaster preparedness for hazards that may impact their community and trains people in basic disaster response skills, such as fire safety, light search and rescue, team organization, and disaster medical operations.
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Community Development Block Grant
Grant funds allocated by the Federal government to the City. The Federal government determines the annual grant amount based on a formula that takes into account such factors as population growth, level of poverty, age of housing, and extent of overcrowdin g. The City has participated as an entitlement community in the Community Development Block Grant program since 1975, which was the first year of funding.
Construction Permits
The Building Division regulates building and associated construction activities to protect public health, safety, and welfare according to uniform construction codes governing land use and code enforcement. Construction permits are required for new buildings, additions, and installation or replacement of water heaters, furnaces, water treatment systems, and other appliances.
Coronavirus
A coronavirus is a type of common virus that infects humans, typically leading to an upper respiratory infection. COVID -19 is a name for a new disease, coined as an abbreviated form of coronavirus disease 2019. This is a mild to severe, even deadly, respiratory illness that is caused by a coronavirus. In late 2019/early 2020, the COVID-19 pandemic swept the globe, creating economic and social chaos.
Cost Allocation Transfers
Payments, by operating departments of the City to the General Fund, for central support services such as administration, payroll, and accounts payable.
Coverage
The margin of safety for payment of debt services that reflects the number of times by which earnings for some time exceed debt service payable in such a period.
Debt Financing
Issuance of bonds and other debt instruments for capital improvements needed today and pledging future revenues to repay principal and interest expenditures (see Debt Service). The City uses debt financing only for one -time capital improvements whose life will exceed the term of financing and where expected revenues are sufficient to cover the long-term debt.
Debt Service
Payments of principal and interest on bonds and other debt instruments according to a pre - determined schedule.
Debt Service Funds
Debt Service Funds are used to account for the payment and accumulation of resources related to general long term debt principal and interest; debt service payments related to enterprise operations are directly accounted for in those funds.
Department
A major organizational unit of the City that has been assigned overall management responsibility for an operation or a group of related operations within a functional area.
Department of Water Resources
The Department of Water Resources operates and maintains the State Water Project, including the California Aqueduct. The Department provides dam safety and flood control services, assists local water districts in water management and conservation activities, promotes recreational opportunities, and plans for future State-wide water needs.
Division
A sub-operation of a City department.
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Digital Infrastructure and Video Competition Act
Under this State law signed by the Governor in 2006, the City can no longer issue new cable franchises; they are instead issued by the State Public Utilities Commission. The City subsequently approved ordinances to acquire certain rights and responsibilities under the DIVCA, including the regulation and fees regarding the time, place, and manner of using the public rights -of-way, and customer service standards. Also, the City retains a five percent franchise fee, and a separate PEG franchise fee.
Downtown Fridays
Downtown Fridays are designed to give people more activities and events to do so they spend more time downtown. Launched in 2016, Downtown Fridays are held in late March into October, weather permitting, at Town Center West. The event is a component of the Downtown Specific Plan, and is a partnership of the City and local entrepreneurs.
Downtown Multimodal Streetscape Plan
The downtown area consists of four blocks east and west of Main Street (State Highway 166) and the area from Fesler Street north of Broadway (State Highway 135) to just south of the Public Library. The area also includes the Santa Maria Transit Center and the nearby Hancock Terrance Apartments along Boone Street. The goal is to enhance corridor access on Broadway and Main Street for walking, biking, and transit riders, to connect downtown to retail areas, civic areas, Allan Hancock College, the Transit Center, and surrounding disadvantaged communities.
Drug Abuse Resistance Education
Drug Abuse Resistance Education, better known as DARE, is an education program operated by the Police Department that seeks to prevent the use of illegal drugs, membership in gangs, and violent behavior. Police officers visit school children on campus to spread this message.
Emergency Operations Center
An Emergency Operations Center is a pre-designated facility established by the City to coordinate its overall response and support to an emergency.
Encumbrances
Resources that are set aside or committed to specific use and are no longer available for other expenditures. Encumbrances are also known as obligations.
Enterprise Funds
Proprietary fund type used to report an activity for which a fee is charged to external users for goods or services.
Environmental Impact Report
A detailed review of a proposed project, its potentially adverse environmental effects, possible changes that can be made to reduce adverse effects, and possible alternatives.
Expenditure Savings
Under the City’s budgeting procedures, staffing cost projections are based on all positions being filled throughout the year. Cost projections for major supply purchases and service contracts are projected on a similar basis. However, costs may be less due to vacancies and purchase cost savings. Experience indicates that actual expenditures are likely to be less than budgeted amounts, due in large part to this costing methodology. Accordingly, the expenditure savings category is used to account for this factor in preparing fund balance and working capital projections.
Expenditures
The outflow of funds paid or to be paid for an asset, goods, and services obtained regardless of when the expense is paid. This term applies to all governmental funds. Note: An encumbrance is not an expenditure; an encumbrance reserves funds to be expended.
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Fee
A charge to the consumer for the cost of providing a particular service. City fee levies may not exceed the estimated reasonable cost of providing the particular service or facility for which the fee is charged, plus overhead.
Federal Communications Commission
The Federal government department that sets and controls the communications standards in the country.
Federal Transit Administration
The Federal agency administers formula discretionary grants to support a variety of locally planned, constructed and operated public transportation systems throughout the United States.
Fines, Forfeitures, and Penalties
Revenues received and/or bail monies forfeited upon conviction of a misdemeanor or municipal infraction.
Fiscal Year
The beginning and ending period for recording financial transactions. The City has specified July 1st to June 30th as its fiscal year.
Fixed Assets
Assets of long-term nature such as land, buildings, machinery, furniture, and other equipment. The City has defined fixed assets as those with an expected life over three years and an acquisition cost over $5,000.
Franchise
The fee paid to a municipality from a franchisee for "rental" or "toll" for the use of City streets and rights- of-way.
Full-Time Equivalent Position
A part-time or limited-service position converted to a decimal equivalent of a full- time position based on 2,080 hours per year (40-hour workweek). For example, an employee budgeted to work six months or 1,040 hours would be equal to 0.5 of a full-time position.
Function
A group of related programs crossing organizational (departmental) boundaries and aimed at accomplishing a broad goal or accomplishing a major service. The six functions in the City's financial plan are Public Safety; Utilities; Public Ways and Facilities; Leisure and Cultural Services; Community and Economic Development; and General Government.
Fund
A fiscal accounting entity that records all financial transactions for specific activities or government functions. The generic fund types used by the City are General, Special Revenue, Debt Service, Capital Project, Enterprise, Internal Service, and Trust and Agency Funds.
Fund Balance
Also known as financial position, fund balance for the governmental fund types is the excess of fund assets over liabilities, and represents the cumulative effect of revenues and other financing sources over expenditures and other financing uses. The fund balance is a similar (although not exact) concept as working capital in the Enterprise Funds.
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Gasoline Tax
Currently, 51.1 cents per gallon. The use of tax is limited to research, planning, construction, improvement, maintenance, and operation of public streets and highways or public mass transit guideways. Also called Highway Users Tax and Motor Vehicle Fuel License Tax.
General Fund
The primary operating fund of the City. All revenues that are not allocated by law or contractual agreement to a specific fund are accounted for in the General Fund, including Measure U. Except for subvention or grant revenues restricted for specific uses, General Fund resources can be utilized for any legitimate governmental purpose.
General Plan
The City’s General Plan is a blueprint for growth. State law requires that the General Plan include seven elements. These elements must cover the following topics: Land Use, Circulation, Housing, Safety, Noise, Conservation, and Open Space. A General Plan has two main purposes: to provide information about the community and to provide the decision -making bodies with a framework of community goals and objectives by which specific development proposals are gauged.
General Revenue
Those revenues that cannot be associated with a specific expenditure, such as property (other than voter-approved indebtedness), sales, and business license taxes.
Generally Accepted Accounting Principles
Uniform minimum standards and guidelines for accounting and reporting. These standards govern the form and content of the annual financial statements of an entity. These include the standards, conventions, and rules that accountants follow in recording and summarizing, and in the preparation of financial statements.
Geographic Information Systems
A Geographic Information System (GIS) is an integrated collection of computer hardware and software used for the storage, retrieval, mapping, managing, viewing, analyzing, and modeling of data about geographic features. A GIS provides a framework for gathe ring and organizing mapped data about a city, along with related databases so that the information can be mapped and analyzed. GIS is used in all primary systems within the City, including utility mapping and management, police dispatch, fire response, emergency planning and operations, planning and development, and much more.
Governmental Accounting Standards Board
The Governmental Accounting Standards Board establishes financial accounting and reporting standards for State and local governmental entities, including the City. The standards guide the preparation of external financial reports of those entities.
Government Finance Officers Association
The Government Finance Officers Association is the professional association of state/provincial and local finance officers in the United States and Canada and has served the public finance profession since 1906. Government Finance Officers Association members are dedicated to the sound management of government financial resources. The City strives to create a budget document that addresses the Government Finance Officers Association program criteria as a policy guide, financial plan, operations guide, and a communications device.
Grants
Contributions of cash or other assets usually from another governmental agency to be used or expended for a specified purpose, activity, or facility.
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H-2A Housing
Housing for temporary, nonimmigrant workers (H -2A workers) authorized by the Federal government to perform agricultural services of a temporary or seasonal nature.
Highway
The standard arterial road type in California, varying in width from two lanes to eight. Three State highways are passing through the City: Highway 101, Highway 135 (Broadway), and Highway 166 (Main Street).
Hotel/Bed Tax (also see Transient Occupancy Tax)
The term Hotel/Bed Tax is commonly used when referring to the transient occupancy tax. Transient occupancy tax is a tax levied by cities on persons staying in a room(s) in a hotel, inn, motel, tourist home, non-membership campground, or other lodging facilities.
Integrated Waste Management Facility
An Integrated Waste Management Facility is a comprehensive multi-faceted facility for handling solid waste. Solid waste is brought to this facility and sorted into categories for recycling, reuse, composting, landfilling, or other methods of solid waste disposal and use. The City is planning to open such a facility at Los Flores Ranch.
Internal Service Fund
Funds used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government on a cost-reimbursement basis.
Investment Earnings
Revenue earned from the investment of idle public funds.
League of California Cities
The League of California Cities (LOCC) is an association of California city officials working together to enhance league members’ knowledge, skills, exchange information, and combine resources that might influence policy decisions that affect cities. The LOCC represents cities’ concerns regarding legislation and State finances and provides training for City officials and City Council members Lexipol
A company that provides defensible policies and training for public safety organizations, including policy manuals and training solutions to reduce risk and avoid litigation.
LISTOS/Ready Santa Maria
The Listos/Ready Santa Maria program is a 12 -hour, four-week emergency preparedness class taught by Fire Department staff to Spanish-speaking residents. Listos means Ready in Spanish.
Local Economic Augmentation Fund (LEAF)
The Local Economic Augmentation Fund is a reserve fund, made up of one -time discretionary resources, distinct from the General Fund that is designed to help balance the General Fund’s operating budget during times of economic and/or financial crisis.
Local Agency Formation Commission
A Local Agency Formation Commission exists in each county, with powers to review, approve, or deny proposals for boundary changes and incorporations for cities, counties, and special districts.
Los Flores Ranch Park
This 2.8-square-mile City park located about eight miles south of Santa Maria, at 6245 Dominion Road, offers a rare mix of environmental education, recreation, and approximately eight miles of hiking/equestrian/mountain biking trails.
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Licenses and Permits
Charges designed to reimburse the City for costs of regulating activities being licensed, such as licensing of animals, bicycles, etc.
Limited-Service Employees
Limited service employees are those employees who work up to 19-hours per week (shown in full-time equivalency
Line-Item Budget
A budget that lists detailed expenditure categories (salaries, postage, telephone service, chemicals, travel, etc.) separately, along with the amount budgeted for each specified category. Detail line-item accounts are maintained and recorded for financial reporting and control purposes.
Makerspace
A Makerspace is a place where people with shared interests, especially in computing and technology, can gather to work on do -it-yourself projects while sharing ideas, tools and equipment, and knowledge. The Santa Maria Public Library Makerspace program is offered in collaboration with Allan Hancock College and the Santa Maria Valley Discovery Museum.
Mandate
Legislation passed by the State or Federal government requiring action or provision of services and/or programs. Examples include the Americans with Disabilities Act, which requires actions such as physical facility improvements and provision of specialized transportation services.
Mass Notification System
The Mass Notification System is a mass communications service that provides City officials with the ability to communicate with all residents via telephone, text, and e -mail regarding time-sensitive and public safety matters, such as unforeseen events or emergencies. The Utility Billing Division utilizes this service on weekdays to send 48 -hour shutoff notifications to customers who are delinquent in paying their utility bills.
Measure A
Measure A was passed by the voters of Santa Barbara County in November 2008. This measure extends, for 30 years, the existing half -cent sales tax used to fund local transportation projects that have been in place since the approval of Measure D in 1989.
Measure U
Measure U is a local transaction and use tax within the City of Santa Maria. City voters initially approved Measure U in the June 2012 election (63.95 percent support), enacting a one -quarter-cent general transaction and use tax. More recently, City voters in the November 2018 election (with a 74.18 percent majority) extended and enhanced Measure U at the one-cent rate, to support essential City services.
The tax is imposed upon all retailers within the incorporated City Limits. The tax applies to gross receipts from any retailers from the sale of tangible property sold at retail within the City. The specific use of these tax proceeds is determined by the City Council, with the vast majority (90 percent) allocated to public safety. The Measure U Citizens’ Oversight Committee reviews the annual independent financial audit, and any other City financial reports necessary to advise the City Council of its findings on an annual basis.
Memorandum of Understanding
A document providing a general description of the responsibilities that are assumed by two or more parties in pursuit of their goal(s).
Mobile Data Terminals
A mobile data terminal is a computerized device used in emergency vehicles to communicate with the public safety dispatch center.
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Motor Vehicle License Fee
Motor vehicle license fees are assessed for the privilege of operating a vehicle on public streets. A motor vehicle license fee is annually levied at two percent of the market value of motor vehicles and is imposed by the State "in lieu" of local property taxes. A motor vehicle license fee is also called Motor Vehicle In-Lieu Tax.
Municipal Code
The Municipal Code contains all City ordinances as approved by the City Council. The document is arranged by titles, chapters, and sections. The City maintains the Municipal Code on its website for public usage.
National Pollutant Discharge Elimination System
The National Pollutant Discharge Elimination System Permit Program was established by the Federal government to control point -source discharges of water pollution. In California, these programs are administered by the State Water Resources Control Board and by nine regional boards that issue National Pollutant Discharge Elimination System permits and enforce regulations within their respective region.
Non-Hazardous Hydrocarbon Impacted Soils
Non-Hazardous hydrocarbon impacted soils is non -hazardous soil from oil sumps and mining operations, containing oil in levels approved by State regulators, and is used as cover material for the closed sections of the City’s Landfill. The generators or owne rs of non -hazardous hydrocarbon impacted soils pay to have the soil removed, and the City receives revenues to cover the cost of the closure, and for staff upgrades and enhancement.
Objective
A statement of specific direction, purpose, or intent based on the needs of the community and the goals established for a specific program.
Off-Highway Motor Vehicle License Fee
A fee imposed for the issuance or renewal of identification for every off-highway motor vehicle.
Operating Budget
The portion of the budget that pertains to daily operations and delivery of basic governmental services. The program budgets in the financial plan from the operating budget.
Operating Expenses
The cost for personnel, materials, and equipment required for a department to function.
Operating Revenues
Funds that the government receives as income to pay for ongoing operations. It includes such items as taxes, fees from specific services, interest earnings, and grant revenues. Operating revenues are used to pay for day-to-day activities.
Operating Transfers
Payments from one City fund to another City fund for services, supplies, or repayments of expenses made on behalf of the fund.
Operations
A grouping of related programs within a functional area.
Ordinance
A formal legislative enactment by the City Council. If it is not in conflict with any higher form of law, such as a State statute or constitutional provision, it has the full force and effect of law within the boundaries of the City.
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Other Post-Employment Benefits
The Government Accounting Standards Board requires local governments to account for “Other Post- Employment Benefits.” Other post -employment benefits ligations are primarily for retiree health care costs but may include other benefits such as insurance.
Part-Time Employees
Part-time employees are those employees working up to 32-hours per week in a budgeted position.
People for Leisure and Youth, Incorporated
People for Leisure and Youth, Incorporated is a non -profit public benefit corporation committed to promoting public welfare and education through the acceptance of contributions for use in enhancing, maintaining, and promoting the recreation, leisure, and parks services offered by the City’s Recreation and Parks Department.
Peace Officer Standards and Training
The California Commission on Peace Officer Standards and Training set minimum selection standards for California peace officers employed by Peace Officer Standards and Training -participating agencies.
Program
A grouping of activities organized to accomplish basic goals and objectives. The budget includes various programs grouped into six functions.
Property Tax
An ad valorem tax imposed on real property (land and permanently attached improvements) and tangible personal property (movable property).
Proposition 1B
Proposition 1B, a transportation bond, was approved by California voters in November 2006, resulting in $19.925 billion in transportation funding for the State, cities, and counties.
Proposition 13
Article XIIIA of the California Constitution, commonly known as Proposition 13, which limits the maximum annual increase of any ad valorem tax on real property to one percent of the full cash value of such property.
Proprietary Funds
The Enterprise Fund accounts for operations that are financed and operated like private business enterprises – where the governing body intends that the costs of providing goods or services to the general public continuingly be financed or recovered primarily through user charges.
Provisional Employee
An employee who has not completed a probationary period and who has not been appointed to his/her present class from an eligible list.
Public Agency Retirement System
All seasonal and temporary employees, and all other employees not covered by the California Public Employees Retirement System, are covered by the Public Agency Retirement System according to the requirements of 3121 (b)(7)(F) of the Internal Revenue Servi ce Code (IRS). The Public Agency Retirement System is a Defined Contribution Plan qualifying under 401(a) and 501 of the IRS code.
Public, Education, and Government
Because of its three components, Public Access Television is sometimes referred to as Public, Education, and Government programming or Santa Maria Community TV.
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Quimby Fees
The 1975 Quimby Act authorized cities and counties to pass ordinances requiring that developers set aside land, donate conservation easements, or pay fees for park improvements.
Regional Water Quality Control Board
The Regional Water Quality Control Board’s mission is to develop and enforce water quality objectives and implementation plans that will best protect the State's waters, recognizing local differences in climate, topography, geology, and hydrology. These tasks include: protecting and enforcing the many uses of water including the needs of industry, agriculture, municipal districts, and the environment.
Rental Income
Revenues received through the rental of public properties, such as recreation and park facilities to private parties.
Reserve
An account used to indicate that a portion of a fund's balance is legally restricted for a specific purpose, therefore, not available for general appropriation.
Revenue
Annual income received by the City from external sources to finance City operations.
Revenue Bonds
Bonds sold to construct a project that will produce revenues pledged for the payment of related principal and interest.
Revenue from Other Agencies
Revenues received from the local, county, State, and Federal governments. These funds come in the form of support for programs, such as entitlement programs and one-time grants for which applications must be submitted.
Rights-of-Way
The legal right of passage over property owned by another party. A parcel of land granted by deed or easement for construction and maintenance according to a designated use.
SAFER Grant
SAFER stands for Staffing for Adequate Fire and Emergency Response. These competitive grants, from the Department of Homeland Security through the Federal Emergency Management Agency, are utilized by the Fire Department to purchase equipment and hire firefighters.
Sales Tax
Sales tax is imposed on retailers for the privilege of selling tangible personal property in California. The tax base is the total retail price.
Santa Barbara County Association of Governments
The Santa Barbara County Association of Governments is a regional planning agency comprised of Santa Barbara County and all eight incorporated cities within the County. Santa Barbara County Association of Governments distributes local, State, and Federal t ransportation funds and acts as a forum for addressing regional and multi-jurisdictional issues.
Santa Maria Community Television
Santa Maria Community Television (SMCTV) is a public access television studio with three cable channels for public, educational, and government programming. The operation is funded through an annual grant paid by Comcast Cablevision as a condition of the franchise agreement and by outside revenues secured by staff. SMCTV employees are assigned to the City Manager's Office.
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Santa Maria Regional Transit
Santa Maria Regional Transit (SMRT) provides a regional public transportation service, as mandated under State and Federal regulations, for the transit needs of the Santa Maria urban area.
SB 1 Funding
The “Road Repair and Accountability Act” (SB 1) signed by the Governor in 2017, sets gas and diesel per-gallon taxes to generate $5 billion annually in long -term, dedicated transportation funding to make road safety improvements, fill potholes, repair loca l streets, highways, bridges, and overpasses, with the revenues split equally between State and local government projects. SB 1 is to dedicate about $2 million per year, through annual payments, to the City of Santa Maria. The City intends to improve neighborhood streets with these funds.
Septage Receiving Station
The septage receiving station at the Wastewater Treatment Plant screens septage offloaded from haul trucks for safe introduction to plant processes.
Santa Maria River Levee
The 17-mile-long Santa Maria River Levee provides flood protection to the Santa Maria Valley and the City. The City does not own, operate, or maintain the levee. The levee was designed and built by the Army Corps of Engineers from 1959 to 1963 and is owned and operated by the Santa Barbara County’s Department of Public Works' Flood Control District. The City and County successfully lobbied for levee repairs, and a multimillion-dollar rehabilitation project, to strengthen the structure to modern standards, began in 2009 and was done by 2014. The City and County contributed funds to complete the rehabilitation of the final 3,700-foot section.
Service Charges
Charges imposed to support services to individuals or to cover the cost of providing such services. The fees charged are limited to the cost of providing the service or regulation required (plus overhead).
Special Revenue Funds
This fund type is used to account for the proceeds from specific revenue sources (other than trusts or major capital projects) that are legally restricted to expenditures for specific purposes.
Sphere of Influence
A sphere of influence is an unincorporated area that is subject to the influence of City planning because it is destined to become annexed. The Local Agency Formation Commission has sole responsibility for establishing a City's sphere of influence.
State Mandated Costs
Article XIIIB, Section 6 of the California Constitution which requires the State to reimburse local agencies for the cost of State -imposed programs. The process is commonly called "SB 90" after its original 1972 legislation.
State Water
State Water is a supplemental, high-quality water source, imported from northern California by way of a complex system of canals, pipelines, pumps, and treatment plants. Deliveries to participating communities within Santa Barbara County began in 1997. In most years, a large percentage of Santa Maria’s municipal water consists of State Water.
Subventions
Revenues collected by the State (or other levels of government), which are allocated to the City on a formula basis. The major subventions received by the City from the State include motor vehicle in -lieu and gasoline taxes.
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SWAT
A unit within a police force that is trained to deal with situations of unusual danger, especially when requiring aggressive tactics or enhanced firepower. SWAT stands for Special Weapons And Tactics.
Target Budget
A budget that is based on a specific predetermined allocation of financial resources per department.
Operational decisions are made by departments with the intent of not exceeding the department's predetermined financial resources.
Tax
A compulsory charge levied by a government for financing services performed for the common benefit.
Tax Increment Financing
A tax incentive designed to attract business investment by dedicating to the project area the new property tax revenues generated by redevelopment. The increase in revenues (increment) is used to finance development-related costs in that district.
Traffic Safety Fund
All fines and forfeitures received as a result of arrests by City officers for vehicle code violations must be deposited in a special City “Traffic Safety Fund” to be used for traffic control devices; maintenance of equipment and supplies for traffic law enforcement, traffic accident prevention; maintenance/improvement or construction of public streets, bridges or culverts; and the compensation of school crossing guards who are not regular full- time members of the Police Department.
TrakIt
TrakIt is a proprietary municipal software application used by City departments to track and map all City activities down to the address level. Uses range from tracking code compliance cases, permitting and project planning, tracking work orders, and more.
The Transportation Development Act
The Transportation Development Act is one of the major funding sources for public transit in California.
The Transportation Development Act provides two funding sources: the Local Transportation Fund and the State Transit Assistance Fund. The Transportatio n Development Act revenues are allocated to transportation programs, including regional and municipal transit systems, pedestrian and bikeway improvements, and street and road construction.
Transient Occupancy Tax (TOT) - Also see Hotel/Bed Tax
A tax levied by cities on persons staying in a room(s) in a hotel, inn, motel, tourist home, non - membership campground, or other lodging facilities. The City’s TOT rate is 10 percent. In early 2016 the City Council approved the formation of a Tourist Improvement District (TID), assessing a two percent fee on each overnight stay in a Santa Maria motel or hotel room; those funds are used by the TID members to market the community to overnight guests.
Unrestricted
Under the Governmental Accounting Standards Board, Unrestricted fund balance is the amount of fund balance left after determining both non-spendable and restricted net resources. The unrestricted fund balance is the amount of fund balance that a local government, itself, has placed constraints on its use (committed and assigned) and fund balance that does not have any specific purpose identified for the use of those net resources (unassigned). The unrestricted fund balance, therefore, includes the committed, assigned, and unassigned classifications.
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Vehicle License Fee
Established in 1935 as a uniform State-wide tax, the vehicle license fee is a tax on the ownership of a registered vehicle in place of taxing vehicles as personal property. By law, all revenues from the vehicle license fee fund City and County services, but the State Legislature controls the tax rate and the allocation among local governments. In 2004, the Legislature permanently reduced the vehicle license fee tax rate and eliminated State general fund backfill to cities and counties. Instead, cities and counties receive additional transfers of property taxes in-lieu of vehicle license fees.
Wastewater Treatment Plant
The Wastewater Treatment Plant, located on Black Road, treats and disposes of millions of gallons of wastewater and accepted septage within State and County standards.
Working Capital
Known as a financial position in private sector accounting and enterprise fund accounting in the public sector, working capital is the excess of current assets over current liabilities. For the enterprise funds, this term is a similar (although not exact) concept as fund balance in governmental fund types.
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APPENDICES
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APPENDIX A: FINANCIAL AND BUDGET POLICIES
INTRODUCTION
SUMMARY
The financial integrity of any City is of utmost importance. A key element in maintaining this integrity is the development of a comprehensive set of budget and financial policies to guide city action. The City operates under a variety of budget and financial policies that can be found in many different sources, such as City Council Resolutions, budget documents, as well as other Council and administrative policies. The following Budget and Financial Policies are designed to bring together all existing policies; to formalize those undocumented policies currently being used, to develop financial policies in compliance with the National Advisory Council on State and Local Budgeting and the Government Finance Officers Association (GFOA) recommendations.
Written, adopted financial policies have many benefits, such as assisting the City Council and City Manager in the financial management of the City, saving time and energy when discussing financial matters, increasing public confidence, and providing continuity over time as City Council and staff members change.
RESPONSIBILITY
The Budget and Financial Policies are and may be periodically amended. The following policies are designed to promote sound financial management and guide the City in maintaining financial stability, efficiency, and effectiveness.
BUDGET POLICIES
SUMMARY
The adoption of a budget is one of the most important actions taken by the City Council, as the budget establishes the City’s priorities and goals. The budget determines how resources are assigned to the goals, objectives, and priorities set forth by the City Council. The budget is, in reality, the financial work plan, translated into appropriations and supported by revenues. The following policies guide the development and management of the budget.
TWO-YEAR BUDGET
The City uses a two-year financial plan, which emphasizes long-range planning and effective program management. The City began preparing a two -year budget with the development of the 1986 -88 Two-Year Budget. Preparing a two -year budget reinforces the impor tance of long -range planning, promotes more orderly spending patterns, and significantly reduces the amount of time and resources allocated to preparing annual budgets.
The City Council adopts a two-year budget that consists of two, one-year budgets. This format means that each year, of the two -year budget, is a separate spending guide and those unused appropriations will lapse at the end of the first fiscal year unless specifically carried forward into the second fiscal year. All unexpended appropriations lapse at the end of the two-year fiscal year period unless encumbered. Lease contracts entered into by the City are subject to annual appropriation by the City Council; hence the leases are legally one -fiscal year contracts with an option for renewal for another fiscal year.
BUDGET ADMINISTRATION
The City Council may amend the budget by a majority vote of the City Council at any time during the two years. The City Manager is authorized to make administrative adjustments to the budget as long as those changes do not significantly impact policy or affect budgeted year-end fund balances. Any revisions that alter the fund balance of a fund must be approved by the City Council. The level at which expenditures may not legally exceed appropriations is, therefore, established at the fund level.
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MID-YEAR BUDGET REVIEW
At the end of the first budget year, a Mid -Year Budget Review is conducted and recommended budget amendments for the second budget year are presented for City Council consideration.
MEASURABLE GOALS AND OBJECTIVES
Each fiscal year, measurable program goals and objectives are developed by each City department.
In addition to the publication of the Two -Year Budget, a separate document entitled “Goals and Objectives,” is annually published by the City Manager’s Office . The status of these goals and objectives are then formally reported, quarterly during the fiscal year, to the City Council.
QUARTERLY BUDGET REVIEWS
Reports on the City’s fiscal condition are presented to the City Council four times per year. If necessary, budget amendments required to maintain ongoing operations are presented to the City Council for consideration at that time.
BALANCED BUDGET
Unless otherwise authorized by the City Council, the City strives to adopt a balanced budget whereas operating revenues are equal to, or exceed, operating expenditures during each year of the two-year budget period. Any increase in expenses, a decrease in revenues, or a combination of the two that results in a budget imbalance requires a budget revision initiated by the City Manager, rather than spending unappropriated surpluses or designated reserves to support ongoing operations. Any year - end operating surplus will revert to equally to General Fund Assigned Fund Balance for Unfunded Pension Benefits, to the capital projects fund for “one -time-only” General Fund expenditures, and to Local Economic Augmentation Fund (LEAF) until the LEAF fund balance reaches 5 percent of operating General Fund and Measure U operating appropriations.
Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in this situation, beginning fund balance should only be used to fund capital improvement projects, or other “one-time,” non-recurring expenditures.
FINANCIAL REPORTING POLICIES
ANNUAL REPORTING
The City will prepare annual financial statements following generally accepted accounting principles (GAAP) requirements. The City will contract for an annual audit to be performed by a qualified independent certified public accountant and will strive for an unqualified opinion from the independent auditors.
The City will issue a request for proposal (RFP) at least every five years to evaluate replacement of the current auditors – this is to ensure that internal controls are freshly examined. Due to the frequent lack of qualified audit firms in the public sector, the current auditors are allowed to respond to the RFP.
The City will use GAAP in preparing the annual financial statements with the intent of meeting the requirements of the GFOA’s Award for Excellence in Financial Reporting Program. The City will issue audited financial statements within 180 days of the year-end date of June 30th.
INTERIM REPORTING
The City will prepare, and issue timely, interim reports on the City’s fiscal status to the City Council and staff. These reports will include, but are not limited to, the following:
• Online access to the City’s financial management system. • Updated, computerized financial reports available to City departments within five working days of month-end.
• Quarterly, departmental analysis of revenues and expenditures; including a comparison of budget to actual, for revenues and expenditures, and an explanation of variances greater than five percent of major categories (Salaries, Materials, Equipment, and Con tracts); with City of Santa Maria 2024-26 Biennial Budget
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departments explaining variances, on the division level, greater than ten percent of their total budget.
• Quarterly Financial Reports to the City Council, outlining current economic conditions, the financial status of major funds, and if needed, budget amendments required to maintain ongoing operations.
• At the end of the first budget year, a Mid -Year Budget Review to assess revenues to -date, projected revenues, the adequacy of the second -year budget, and identify any needed adjustments. This report recommends budget amendments to the City Council for consideration for the second-year budget.
DIVERSIFIED AND STABLE REVENUE BASE
The City seeks to maintain a diversified and stable revenue base to protect from short-term fluctuations in any one revenue source.
CURRENT REVENUES FOR CURRENT USES
The City will expend all current expenditures utilizing current revenues; and avoid procedures that balance current budgets by postponing needed expenditures, accruing future revenues, or rolling over short-term debt.
INTERFUND TRANSFERS AND LOANS
In adherence to grant requirements, GAAP, and public policy goals, the City has established various special revenue, capital project, debt service, and enterprise funds to account for revenues that are restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its revenue sources, expenditures, and fund equity.
Transfers among funds for operating purposes are outlined in the two-year budget document and can only be made by the Director of Finance, following the adopted budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from inter-fund borrowing, which are customarily made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources by the end of the fiscal year. In summary, inter - fund transfers result in a change in fund equity; inter -fund borrowings do not, as the intent is to repay the loan in the near term.
From time to time, interfund borrowings may be appropriate; however, these are subject to the following criteria to ensure that the fiduciary purpose of the fund is met:
• The Director of Finance is authorized to approve temporary inter-fund borrowings for cash flow purposes whenever the cash flow is expected to be resolved within 45 days. The most common use of this type of inter -fund borrowing is for grant programs such as Local Law Enforcement Block Grant Funds, where costs are incurred before drawdowns are initiated and received; and the receipt of funds is typically received shortly after the request for funds was made. • Other inter-fund borrowings, for cash flow or other purposes, are dealt with by a case -by-case review by the Director of Finance.
REVENUE MANAGEMENT POLICIES
REVENUE DISTRIBUTION
The City Council recognizes that GAAP, for State and local governments, discourages the “earmarking” of General Fund revenues. Though there may be occasions when specific revenue may be needed to fund an activity, the practice of designating General Fund r evenues for specific programs should be minimized in the City’s management of its fiscal affairs. Approval of the following revenue distribution policies does not prevent the City Council from directing General Fund resources to other functions and programs, as necessary.
• Property Taxes: With the passage of Proposition 13 in 1978, California cities cannot set individual City of Santa Maria 2024-26 Biennial Budget
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property tax rates. In addition to limiting annual increases in market value, placing a ceiling on voter-approved indebtedness, and redefining assessed valuations, Proposition 13 established a maximum County-wide levy for general revenue purposes of one pe rcent of market value.
Subsequent State legislation adopted formulas for the distribution of a County -wide levy of property taxes. The City now receives a percentage of total property tax revenues collected County-wide as determined by the County Auditor -Controller. General property tax remitted from the County is deposited into the General Fund as discretionary revenue. • Gasoline Tax Subventions: All gasoline tax revenues restricted by the State for street -related purposes will be used for maintenance activities. Because the City’s total expenditures for gas tax eligible programs and projects are much greater than this re venue source, operating transfers will be made between the Gas Tax fund and the General Fund. This approach significantly reduces the accounting efforts required in meeting State reporting requirements. • Transportation Development Act (TDA) Revenues: TDA revenues are allocated to transportation programs, including regional and municipal transit systems, pedestrian and bikeway improvements, and street and road construction. • Proposition 218: According to the terms of Proposition 218 passed by the voters in November 1996, tax revenues cannot be initiated or increased without a majority vote of the populace.
Therefore, the City property tax, sales tax, business license tax, and transient occupancy tax revenues cannot be increased without a community vote.
COST RECOVERY POLICY
USER FEES POLICY
The City imposes fees and charges to users for City services, goods, and permits. These fees and charges can be set at 100 percent of full cost or be subsidized by City funds. In adoption of fees, it must be found that fees and charges do not exceed the City's costs of providing the service or processing work. User fees and charges will be adjusted biannually to recover the full cost of services provided, unless City Council determines that a subsidy from the General Fund (or any other fund) is in the public’s best interest.
According to the standards established by Government Finance Officers Association (GFOA) and National Advisory Council on State and Local Budgeting (NACSLB) and their best practice guidelines, governments should calculate the full cost of the different services they provide. For instance, GFOA recommends a formal fee policy that should identify factors to be considered when pricing services.
Factors to be Considered When Setting Fees and Charges, and Cost Recovery Levels:
• Consider community-wide versus special service nature of the program or activity. The use of general purpose (tax) revenue is appropriate for community -wide services, while user fees at full cost are appropriate for services which are of special benefit to easily identified individuals or groups.
• The full cost of providing a service should be calculated to provide a basis for setting the charge or fee. Full costs shall include the following elements: direct labor, fringe benefits, equipment, materials, contract services, utilities, and cost allocation of indirect expenses, including legislative and central service costs.
• Fees and charges, in the absence of a specific public policy exception, should be set at full cost recovery.
• Public policy exceptions can occur due to the nature of the program or activity.
DEVELOPMENT IMPACT FEES
The Council’s policy is that to the extent reasonable, growth should pay for itself. As such, the Council has adopted a schedule of development impact fees. Development impact fees are one -time City of Santa Maria 2024-26 Biennial Budget
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charges assessed against new customers to recover their proportional share of capital costs incurred to provide service capacity for new customers. Developer contributed assets will be considered for credits against the impact fee based on a modeled value. Appropriate development fees are an important component in the overall strategy for financing capital improvements.
The city’s objectives for development impact fees shall include but are not limited to the following:
• Support the reasonable cost of growth.
• Consider the impact of growth on existing residents.
• Develop cost justified development fees.
• Address infrastructure requirements.
• Promote economic development.
• Provide financial capacity.
Development impact fees may be assessed for a public purpose such as:
• Libraries
• Parks, recreation facilities, trails and open space
• Law enforcement
• Fire protection
• General government
• Transportation
• Water
• Water resources
• Wastewater
• Solid Waste
DEBT POLICIES
The City’s debt management policy requires full disclosure of all financial reports. The City’s practice is to pay for capital projects and capital improvements on a pay-as-you-go basis using current revenues whenever possible. If a project or improvement cannot be financed with current revenues, long-term debt will be considered. The City will consider refinancing outstanding debt after comparing the cost of refinancing with the savings from reduced interest expense. Every effort will be made to limit the amount of general obligation debt. All general obligation debt will be used only for public purposes.
The following are those factors the City will take into consideration when incurring debt:
• The City will adhere to its debt covenants.
• The City will periodically review its debt capacity.
• The City will issue bonds only for capital improvements and general obligations. Long-term debt will not be used to fund operating activities.
• The City will publish and distribute an official statement for each bond and rate issue. • The City will not issue long-term debt with a maturity longer than the useful life of the project or item funded.
• If the City utilizes long-term debt financing, staff will ensure that the debt is soundly financed by determining that the cost/benefit ratio of the improvement is positive and the revenue sources used to repay the debt are conservatively projected.
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• Where possible and feasible, the City will use special assessment, revenue, or other self - supporting bonds and avoid the use of general obligation debt. • The City will maintain solid relationships and communications with bond rating agencies and will strive for improvements in the City’s bond rating.
FUND BALANCE RESERVES
BACKGROUND
To protect City operations from downturns in the economy, State reductions of local revenues, natural or man-made disasters, and the City’s creditworthiness, the City Council desires that the City maintains specific fund balance levels for the General and Enterprise Funds. These minimum balances will adequately provide for cash flow requirements and provide a contingency for unanticipated operating or capital needs.
MINIMUM BALANCES
General Fund: The City’s General Fund will endeavor to maintain a minimum unassigned fund balance of at least 25 percent of operating appropriations. These reserves are needed to insulate the General Fund programs and current service levels from large and unanticipated one -time expenditure requirements, a revenue reduction due to a change in State or Federal legislation, and other unforeseen circumstances.
In 2010- 11, the City adopted a General Fund Prudent Reserve under Governmental Accounting Standards Board (GASB) Statement Number 54. The prudent reserve amount is updated annually calculated based on 25 percent of operating appropriations. Appropriations from the reserve can only be made by formal City Council action and are limited to emergencies such as:
• An unplanned, major event such as a catastrophic disaster requiring expenditures over five percent of the adopted General Fund Budget.
• Budgeted revenue took over by another entity.
• A drop in projected/actual revenue of more than five percent of the adopted General Fund revenue budget.
Should the prudent reserve commitment be used, and its level falls below the minimum amount as described herein, the goal is to replenish the fund within two fiscal years.
ENTERPRISE FUNDS
The Enterprise Funds of Water Resources, Solid Waste, and Transit, will endeavor to fund and maintain a minimum working capital balance of 20 percent of operating appropriations.
VEHICLE AND EQUIPMENT REPLACEMENT FUNDS
The City maintains three “Internal Service Funds” to provide for the timely replacement of vehicles and related equipment, business equipment, and communication equipment. The City will endeavor to maintain a minimum fund balance in each of these funds equal to 20 percent of the original purchase cost of the items accounted for in the fund.
As an Internal Service Fund, revenues are received by charging the other City funds utilizing vehicle and related equipment, business equipment, and communication equipment. The annual contribution to this fund will be based on a use allowance. The use allowance is calculated by the original cost of the item plus a four percent cost growth, divided by the estimated life of the vehicle or equipment. Also, funds are charged for actual incurred maintenance costs plus overhead.
LIABILITY AND WORKERS’ COMPENSATION FUNDS
The City will perform annual actuarial studies for the Liability and Worker’s Compensation funds and will fund the Liability Insurance fund at the 80 percent confidence level and the Worker’s Compensation Fund at the 90 percent confidence level.
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As prudent, based on cost and benefit analysis, the City may elect to self-insure certain assets. The City will review funding levels for self-insured assets on an annual basis and set-aside appropriated reserves to replenish assets throughout the year. The funds will be set -aside as reserves within the respective operating or internal insurance funds.
LOCAL ECONOMIC AUGMENTATION FUND
The Local Economic Augmentation Fund is a reserve fund established in 2000 -01 to be used as the primary financing mechanism to address any potential revenue shortfalls during times of economic downturns or severe State action, so as not to significantly impact the operating budget and service levels of the General Fund. The City Council set aside General Fund proceeds into this account. The intent of this fund is to be used as a “gap financing” mechanism during downturns in the local economy. The City will strive to maintain 5 percent of General Fund and Measure U fund annual appropriations in the LEAF fund balance.
APPROPRIATIONS LIMITATION
BACKGROUND
Proposition 4 (Gann Initiative) requires that all local governments calculate and report the annual appropriations limits, i.e., the maximum appropriation, allowed by law, that the municipality may spend. Article XIII -B of the State Constitution Senate Bi ll 1352, passed in August 1980, requires each local government to establish, by resolution, an annual appropriations limit. In June 1990, the voters of the State of California approved Proposition 111, which subsequently modified the adjustment formula.
Under Proposition 4, if a local government ends the fiscal year with more proceeds of taxes than the appropriations limit allows, the municipality is required to return the excess to the taxpayers within two years (by reducing taxes or fees). Municipalities may use those two years to request voters to approve an override increasing the appropriations limit.
REPORTING REQUIREMENTS
• Annually, in July, the City Council will adopt a resolution establishing the City’s appropriations limit calculated following Article XIII-B of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter -approved amendments or State legislation that affect the City’s appropriations limit. • The supporting documentation used in calculating the City’s appropriations limit and, projected appropriations subject to the limit, will be available for public and City Council review at least 10 days before City Council’s consideration of a resolution t o adopt an appropriations limit. The City Council will generally consider this resolution in connection with the final approval of the budget.
• The City will strive to develop revenue sources, new and existing, which are considered non - tax proceeds in calculating its appropriations subject to limitations. • The City will actively support legislation or initiatives sponsored or approved by the League of California Cities that would modify Article XIII -B of the Constitution in a manner that allows the City to retain projected tax revenues that result from growth in the local economy for use as determined by the City Council.
• The City will seek voter approval to amend the appropriations limit if the tax proceeds are more than allowable limits.
CAPITAL MAINTENANCE EQUIPMENT PROJECT
OTHER DESIGNATIONS AND RESERVES
In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years, which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances ; and other reserves or designation required City of Santa Maria 2024-26 Biennial Budget
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by contractual obligations, State law, or GAAP requirements. Appropriations for projects approved in prior years will be carried forward administratively unless a project has not commenced within two years from the original funding approval date.
CAPITAL MAINTENANCE EQUIPMENT PROJECT (CMEP) PURPOSE
The purpose of the CMEP is to systematically plan, schedule, budget, and finance capital projects to ensure cost-effectiveness and efficiency of construction.
General Fund CMEPs will be budgeted in the General Fund Capital Projects Fund, while Enterprise and Internal Service Fund CMEPs will be budgeted in the individual funds.
The CMEP is a four -year plan organized into the same functional groupings used for the operating programs. Because the four-year plan is a planning tool rather than a budgeting tool, only two years of CMEPs are reported in the two -year Capital Project section of the budget. The CMEP, reported in the two -year budget, reports the responsible fund, the year funding will be appropriated, funding sources, and totals by category (Public Safety, Public Utilities, Public Ways and Facilities, etc.).
CMEP - $5,000 OR MORE
Construction projects and equipment purchases, that cost $5,000 or more, will be included in the Capital Projects section of the budget; while minor capital outlays of less than $5,000 will be included within the operating program budgets.
CMEP REVIEW
The City Manager’s Office, in combination with the Public Works and Finance Departments, will review the project proposals and determine a listing of projects for the two -year budget document. CMEP projects that were approved in the prior budget but that did not start by the end of the calendar year are ineligible for carryover to the new budget.
DEFINITIONS
The following definitions are provided to clarify the difference between a capital project (outlay) and a capital/maintenance equipment project.
Capital Outlay: A capital project must include one or more of the following:
• Betterment: The replacement of an asset, by an improved or superior asset, results in a productive, efficient, and long -lived property. Betterment is considered capital outlay when the amount expended is “significant,” generally 20 percent or greater than the market value of the assets.
• Addition: Attached or separate units, which are extensions of an existing unit. • Acquisition, Construction, Rights -of-Way, etc.: The acquisition of new tangible assets, which are generally classified as land, structures, and improvements.
Maintenance: An expenditure for repair or alteration to a facility, which neither materially adds to the value of the facility nor appreciably prolongs its life.
Capital Equipment: The acquisition of capital equipment that is classified as Fixed Assets. Generally, the equipment is valued at $5,000 or more plus any computers, communications, or technical equipment that attach to the City’s network are classed as fixed assets. Other equipment under $5,000 may be acquired from operating funds.
CMEP APPROPRIATION
Departmental requests for Capital/Maintenance Equipment Project funding are reviewed against the following criteria:
• Are additional funds needed to complete projects in progress; • Is the project required to meet a legal or policy mandate; City of Santa Maria 2024-26 Biennial Budget
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• Is the project required to improve unacceptable health and/or safety conditions; • Is the project required to maintain existing facilities or assets; • Is the project required to maintain existing service levels; • Will the project reduce other City costs;
• Will the project enhance and maximize operational efficiencies? Generally, project appropriations are made when the two -year budget is approved. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to fund balance or, with the approval of the City Manager, allocated to another project. If project costs at the time of bid award are greater than budget amounts, the following options are available:
• Eliminate the project from the CMEP listing;
• Defer the project for consideration to the next budget period; • Redesign or change the phase of the project to meet the existing budget; • Transfer funding from another specified lower priority project; • Request City Council approval to appropriate additional resources from fund balance.
BUDGET CARRYOVER
To ensure that appropriations for uncompleted capital projects, grants, and professional services, from the fiscal year that is being closed, are available in the new fiscal year, departments follow a carry - over process. This process requires a departmenta l review of appropriations and expenditures as of the last day of the fiscal year; identification of purchase orders rolled over to the new fiscal year; determination of uncompleted grants, contracts, and capital projects.
The project appropriations will be reviewed biennially through the budget development process and any modifications for appropriations will be reviewed through the budget adoption.
Carry-over budget amounts are unused appropriations in the previous fiscal year and additions to the new fiscal year budget. These are grants, agreements, or projects that received City Council approval, but purchase orders were not issued nor were the projects/contracts/grants completed at year -end.
Qualifying carry -over appropriations are requests for bids, requests for proposals, grants spanning multiple fiscal years, and approved uncompleted capital projects.
Before any budget carryover departments submit a listing of the unused appropriations/budget carryover request to the Department of Finance for consideration and recommendation to the City Manager’s Office.
CONTRACT SERVICES POLICY
GENERAL POLICY GUIDELINES
Purpose: Contracting with the private sector, for the delivery of services, provides the City with a significant opportunity for cost containment and productivity increases. In some instances, the City uses private sector resources in delivering municipal services as a key element in the City’s continuing efforts to provide cost-effective programs.
Types: The City uses private sector contracting for construction projects, professional services, outside employment agencies, and other ongoing operating and maintenance services.
Purchasing Policy: All contracts will be executed in accordance with the City’s Council approved Purchasing Policy.
Evaluating Costs: Indirect, direct, and contract administration costs of the City are to be identified and considered when evaluating and comparing the costs of private sector contracts with in -house services.
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Contract Change-Orders: When circumstances dictate that it is in the best interests of the City for cost- efficiency purposes to deliver a project or to provide unanticipated like services within current appropriation authority, contract change orders may be executed. Contract c hange orders, for like services, often take advantage of economies of scale, cost -effectiveness, or may be desirable when time is of the essence. Contract change-order funding must be available within the existing budgeted authority, supported by proper justification, and approved by the City Manager on a case -by-case basis.
Conversion to Contract Services: Programs and activities that are currently provided by City employees may be converted to contract services when attrition, reassignment, or absorption of City staff occurs. However, such conversion would not happen until the proper notification requirem ents are made to the affected employees.
Evaluation Criteria: The cost-effectiveness of using contract services to meet established service levels will be evaluated using the general policy guidelines stated above and on a case-by-case basis using the following criteria:
Available Vendors: Is there a sufficient private sector market that can competitively deliver the service and offer a reasonable choice of alternative service providers? Contract Administration: Can the contract be effectively and efficiently administered by City staff? Contract Provisions: Can the contract contain provisions to compensate the City for damages should the contractor fail to perform?
Staffing Levels: Can a private-sector contractor respond to expansions, contractions, or other special requirements of the service by rapidly adjusting staffing levels? Scope of Work: Can the scope of work be sufficiently defined to ensure that competing proposals are fairly and fully evaluated, and can the contractor’s performance be fairly evaluated after the bid award?
Service Levels: Does the use of contract services provide the City with an opportunity to redefine service levels?
Emergency Services: Will the contract limits the City’s ability to deliver emergency or other high-priority services?
Accountability and Responsibility: Overall, can the City successfully delegate the performance of the service and still retain accountability and responsibility for the service delivery?
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Appendix B: Budgetary Accounting
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APPENDIX B: BUDGETARY ACCOUNTING
Budgetary accounting is a management tool to assist in controlling expenditures. Budgetary accounting is an important control tool because the annual budget is a legal compliance standard against which the operations of all funds are evaluated.
Budgetary accounts include appropriation, encumbrances, and estimated revenues. Appropriations are the authorizations granted by the City Council to make expenditures or incur obligations for specific programs. Appropriations are made by the specific prog ram and fund type. Encumbrances reserve a portion of an appropriation representing a current fiscal year obligation that has not been paid, or commitments related to unperformed contracts for goods and services. Estimated revenues are the anticipated resources the City expects to receive from various funding sources throughout the fiscal year.
The City Council has the responsibility for the adoption of the City's budget, which is prepared by City staff. Budgets are adopted for all general, special revenue, and proprietary funds. The budget adopted by the City Council is for a two -year period, wh ich consists of two one -year budgets. From the effective date of the budget, the amounts stated as proposed expenditures are reflected as appropriations or authorization for the various City departments to expend City resources. The City Council may amend the budget by motion at any time during the two years. At the end of the first budget year, a Mid -Year Budget Review will take place, with recommended budget amendments presented to the City Council for the second budget year. The City Manager may transfer funds from one major expenditure category to another within the same fund. Any revisions that alter the total fund balance must be approved by the City Council. Therefore, the level at which expenditures may not legally exceed appropriations is established at the fund level.
For the General Fund, the City Council establishes an appropriation limit according to Article XIIIB of the State Constitution. This appropriation limit is a spending limit for the proceeds of taxes to be spent.
This limit is based on the prior year’s limit, adjusted by the change in California Per Capita Income and by the change in the City’s population.
Appropriations remaining at the end of the first year are eligible to be carried forward to the second year. All appropriations lapse at the end of the two years to the extent that the appropriations have not been expended or encumbered. Encumbrance accoun ting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded to reserve that portion of applicable appropriations, is employed as an extension of formal budgetary integration in the governmental fund types. Lease contracts entered into by the City are subject to annual review by the City Council; hence, lease contracts are legally one-year contracts with an option for renewal for another fiscal year.
Generally, expenditures are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due.
Governmental funds are used to account for the government’s general governmental activities.
Governmental fund types use the flow of current financial resources and the modified accrual basis of accounting. Under the modified accrual basis of accounting, r evenues are recognized when susceptible to accrual (i.e., when revenues are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period.
Revenues are recorded when received in cash, except for revenues subject to accrual (generally 60 days after fiscal year-end) are recognized when due. Property taxes, charges for services, and interest associated with the current fiscal period are all cons idered susceptible to accrual and as such have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available when received by the government.
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Budget amounts, reported for governmental funds of the City are adopted on a basis consistent with the United States of America Generally Accepted Accounting Principles. Effective fiscal control for debt service funds is achieved through bond indenture pro visions and other management controls.
While budgets are prepared for City capital project funds, capital projects generally span more than one year and are effectively controlled at the project level. The City adopts legal budgets for the General Fund and all special revenue funds.
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APPENDIX C: USE OF COST ACCOUNTING
Cost accounting is the process of tracking, recording, analyzing, and allocating costs associated with activities provided by the City, which benefits multiple funds and departments within the City. The City incurs direct and indirect costs through the pro vision of City services and programs. The City recovers the costs of City central administrative and support activities (central services) through the development and application of indirect cost rates. The City also uses Internal Service Funds to allocate costs for services such as Fleet Services, Business, Communication, and Telephone Equipment, and Insurance Services through rental rates.
A central services cost allocation plan identifies indirect costs incurred by the City to support and administer identified programs. Identifying the indirect cost of various programs is integral to determining the full cost of supporting these programs an d is valuable when seeking reimbursement.
The City’s cost allocation plan has been prepared in compliance with generally accepted accounting principles (GAAP) as recognized by the Governmental Accounting Standards Board (GASB).
The City defines direct costs as those costs, which can be specifically or readily identified with a specific cost objective or program. Indirect costs are defined as those costs necessary for the effective and efficient operation of City programs, which cannot be readily identified to a specific cost objective or program without effort disproportionate to results achieved.
Incorporated within GAAP are three basic principles related to the allocation of central service support costs to operating departments, which have been adhered to in the preparation of the costs of the central services allocation plan. First, costs should be necessary and reasonable for the proper performance of a program. Second, costs should be charged or allocated to programs per relative benefits received. A program should only be charged for services it utilizes or benefits from, and should only be c harged with benefits derived from the service. Third, costs should be accorded consistent treatment as either direct or indirect. A cost should not be charged to a program as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the program as indirect costs.
Central services cost allocation plans come in two varieties, a full cost allocation plan, and an Office of Management and Budget (OMB) A-87 cost allocation plan. The major difference between the OMB A-87 plan and the full cost allocation plan is the costs that are allowable under each variety. Since there are indirect costs, which the Federal government is not willing to pay for, the allowable costs under OMB A-87 guidelines are more limited than the full cost allocation plan.
The OMB A-87 cost allocation plan identifies the allowable indirect costs under the OMB A-87 guidelines and allocates them to various programs, funds, and departments. As a result, the OMB A -87 cost allocation plan determines the indirect costs associated with various forms of Federal or State funding.
Many forms of funding require an OMB A-87 cost allocation plan when charging indirect costs to them.
The full cost allocation plan includes all indirect costs and is used for internal charging purposes. The full cost allocation plan can be used in the budgeting process by determining how much to charge non-General Fund activities for General Fund central services such as payroll, accounting, and the City Council. The full cost allocation plan is also very useful in determining and justifying the indirect cost associated with providing services for which a user fee is charged (e.g. planning fees).
Internal service funds are specifically designed to function as cost -reimbursement devices. Internal service funds are simply a mechanism to accumulate costs related to a particular activity on an accrual basis so that the costs can subsequently be allocated to the benefitting funds in the form of a fee. Accordingly, the City utilizes internal service funds to collect costs associated with maintenance and replacement of the City’s fleet, business and communication equipment, and liability insurance and determine rental rates to be charged to the benefitting funds.
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Appendix D: Appropriation Limit History
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APPENDIX D: APPROPRIATION LIMIT HISTORY
The Gann spending limit initiative, which was adopted by the voters on June 6, 1979, creates a restriction on the amount of revenue, from tax proceeds, that can be appropriated in any fiscal year.
Under the provisions of this initiative, a city may not appropriate any proceeds of taxes in excess of its "appropriations limit." If excess funds are received in any one year, the excess funds may be carried over into the subsequent year. Any excess funds remaining after the second year must be returned to the taxpayers by reducing tax rates or
fees. As an alternative, a majority of the
voters may approve an override to
increase the limit.
The chart is a summary of the changes,
over the past ten years, in the City's
appropriations limit and appropriations
subject to the limit. This summary
reflects modifications approved by
Proposition 111 in June 1990, which
changed the methodology for
determining the appropriations limit, as
well as the appropriations subject to
the limit. In general, the City's
appropriations limit can increase
annually by compound changes in
cost-of-living and population.
The amount titled "Appropriations Subject to Limit" should always be less than the amount in the "Appropriations Limit" column.
The appropriation limit has no significant implication in the City’s budgeting, nor will it in the foreseeable future, based on current trend analysis. The City's actual budget subject to limitation has been running at more than 50 percent lower than the appropriation limit for the past ten years. Based on the current calculation, the City’s actual budget in 2021-22 subject to limitation was $80,199,160 which is about 64 percent lower than the City's limit.
Fiscal Year Limit Base
Inflation
Factor
Population
Factor
Appropriations
Limit
Appropriations
Subject to Limit Variance
2014-15 134,054,830 -0.23% 2.54% 137,138,091 46,545,755 90,592,336 2015-16 137,138,091 3.82% 2.33% 145,640,653 50,468,676 95,171,977 2016-17 145,640,653 10.87% 1.41% 163,743,786 52,686,063 111,057,723 2017-18 163,743,786 7.43% 1.64% 178,791,840 54,724,484 124,067,356 2018-19 178,791,840 3.67% 0.86% 186,944,748 58,924,068 128,020,680 2019-20 186,944,748 8.52% 0.67% 204,237,137 74,002,962 130,234,175 2020-21 204,237,137 3.74% 0.41% 212,753,826 71,037,245 141,716,581 2021-22 212,753,826 5.73% 0.22% 225,433,954 80,199,160 145,234,794 2022-23 225,433,954 8.24% 0.14% 244,347,863 90,199,735 154,148,128 2023-24 244,347,863 6.26% 0.99% 259,301,952 95,384,843 163,917,109
0 50
100
150
200
250
300
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Millions
Appropriations Limit: 2014 - 2024
Appropriations Limit Appropriations Subject to Limit
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Appendix E: List of Funds
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APPENDIX E: LIST OF FUNDS
Number Name Type
001 General General
002 Water Enterprise
003 Solid Waste Collection Enterprise
004 Wastewater Enterprise
007 Mobile Equipment Internal Service
009 Library Special Revenue
010 Solid Waste Disposal Enterprise
011 Measure U General
013 Traffic Safety Special Revenue
015 Orcutt Drainage Special Revenue
016 Quimby Park and Acquisition Development Fees Special Revenue 017 Inger Basin Drainage Special Revenue
018 Blosser Road Drainage Special Revenue
019 Battles Road Drainage Special Revenue
021 Business Equipment Internal Service
022 Communications Equipment Internal Service
023 Radio/Technology Enterprise
027 Growth Mitigation Special Revenue
028 Residential Development Tax Special Revenue
031 Northwest Landscape District Special Revenue
032 Northeast Landscape District Special Revenue
033 Southwest Landscape District Special Revenue
036 Stowell Parking and Lighting Special Revenue
038 Southeast Landscape District Special Revenue
039 Crossroads Special District Special Revenue
040 Business Attraction Loan Special Revenue
041 Payroll General
043 Police - Donations/Grants Special Revenue
046 Federal/State Asset Forfeiture Special Revenue
047 Grant Non-Recurring Special Revenue
063 Gas Tax and Transportation Development Act Special Revenue 064 Developer / Grant Street Projects Special Revenue
066 Public Transit Enterprise
067 Breeze Enterprise
068 Measure A Special Revenue
070 Liability and Multi-Peril Insurance Internal Service 072 Unemployment Insurance Internal Service
073 Self-Insurance Workers' Compensation Internal Service 076 Local Economic Augmentation Internal Service
078 Telephone Internal Service
081 Treasurer's Trust Fiduciary
083 Landfill Closure/Postclosure Fiduciary
085 Maintenance Annuity General
087 Twitchell Management Authority Trust
Fiduciary
City of Santa Maria 2024-26 Biennial Budget
Appendix E: List of Funds
E-2
Number Name Type
801 Capital Projects – General
Capital Projects
948 Capital Projects - Community Development Capital Projects 974 Santa Maria Public Financing Authority Debt Service 998 Public, Education, and Government Access Television Special Revenue
City of Santa Maria 2024-26 Biennial Budget
Appendix F: Description of Funds
F-1
APPENDIX F: DESCRIPTION OF FUNDS
A LOOK AT THE BUDGET BY FUND
The City of Santa Maria’s (City) budget is made up of numerous funds. A fund is a separate accounting entity with a self-balancing set of accounts created to track specific revenue and expense activity.
All of the City’s funds are classified into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Agency Funds. Each category, in turn, is divided into separate “fund types”. Below is a graphical depiction of the budget fund structure:
Proprietary
Funds
Enterprise Funds
The Breeze
Public Transit
Radio Technology
Solid Waste
Wastewater
Water Resources
Internal Service Funds
Business Equipment
Communications
Equip.
Liability & Insurance
Local Economic
Augmentation
Mobile Equipment
(Fleet Services)
Telephone Equipment
Unemployment
Insurance
Governmental
Funds
Debt Service Funds
Financing Authority
2003 Lease Revenue
Bonds
Special Revenue
Funds
Drainage Funds
Economic Development
Fed/State Asset
Forfeiture
Gas Tax & Street Funds
Grant – non-recurring
Growth Mitigation
Landscape Districts
Library
Parking & Lighting
PEG Access Television
Police Grants
Quimby Park &
Acquisition
Residential Development
Tax
Special Districts
Traffic Safety
Capital Projects Funds
CIP – CDBG
CIP - General
General Fund
Measure U
Governmental Services
City of Santa Maria 2024-26 Biennial Budget
Appendix F: Description of Funds
F-2
GOVERNMENTAL FUNDS
GENERAL FUND - 001
The General Fund is the City’s primary fund and accounts for all revenues and expenditures applicable to the general operations of the city government, which are not properly accounted for in another fund. These are activities and services traditionally associated with governments, such as police and fire, recreation and parks, and a city administration that is financed primarily through tax -generated revenues.
MEASURE U FUND - 011
The Measure U Fund accounts for local transactions and use tax within the City of Santa Maria. City voters initially approved Measure U in the June 2012 election, enacting a one -quarter-cent general transactions and use tax. More recently, City voters in the November 2018 election extended and enhanced Measure U at the one-cent rate, to support essential City services. This general-purpose tax is used primarily to fund services such as police and fire, recreation and parks, library, and code enforcement. The Measure U Fund is combined with the General Fund for financial reporting purposes.
PAYROLL FUND - 041
The Measure U Fund accounts for local transactions and use tax within the City of Santa Maria. City voters initially approved Measure U in the June 2012 election, enacting a one -quarter-cent general transactions and use tax. More recently, City voters in t he November 2018 election extended and enhanced Measure U at the one-cent rate, to support essential City services. This general-purpose tax is used primarily to fund services such as police and fire, recreation and parks, library, and code enforcement. The Measure U Fund is combined with the General Fund for financial reporting purposes.
POLICE – DONATIONS/GRANTS FUND - 043
The Police – Donations/Grants Fund accounts for donations from the public and businesses and grant money to the Police Department for specific purposes, such as the K-9 (police dog) Program, supplies for the honor guard, and the Drug Abuse and Resistance E ducation (DARE) Program. The Police – Donations/Grants Fund is combined with the General Fund for reporting purposes and no budget is established for this fund.
MAINTENANCE ANNUITY FUND - 085
The Maintenance Annuity Fund accounts for developer deposits on the newly annexed property.
Developments earn interest income and this interest income helps subsidize property tax revenue to pay for City services. The disposition of the Fund shall be determined by City Council in the year 2030.
DEBT SERVICE FUNDS
SANTA MARIA PUBLIC FINANCING AUTHORITY FUND - 974
The Santa Maria Public Financing Authority Fund represents the City’s debt requirements for the Public Financing Authority.
SPECIAL REVENUE FUNDS
LIBRARY FUND - 009
The Library Fund accounts for resources used to provide public library services to northern Santa Barbara County residents in the communities of Santa Maria, Cuyama, Guadalupe, Orcutt, and Los Alamos. All activities necessary to provide the library operations at the Main Library and branch libraries are accounted for in this fund, including, but not limited to, administration, operations, maintenance, and acquisition of materials for the collections. Separate divisions within this fund track costs for the individual branch libraries.
City of Santa Maria 2024-26 Biennial Budget
Appendix F: Description of Funds
F-3
TRAFFIC SAFETY FUND - 013
The Traffic Safety Fund accounts for all fines and penalties received as a result of arrests, by City police officers, for Vehicle Code violations. This fund is used for traffic control devices, maintenance of equipment and supplies for traffic law enforcement, and traffic accident prevention.
ORCUTT BASIN DRAINAGE FUND - 015
The Orcutt Basin Drainage Fund accounts for resources used to provide drainage around the Orcutt Basin.
QUIMBY PARK AND ACQUISITION DEVELOPMENT FEES FUND - 016 The Quimby Park and Acquisition Development Fees Fund account for revenues collected from developments to provide the community’s basic recreation and park needs. The Quimby Act, first established in 1965 by the California Legislature, allows local agencie s, such as the City, to establish ordinances requiring residential subdivision developers to provide impact fees for land and/or recreational facilities. Currently, this fund is collected under the authority of the City's Growth Mitigation Fee Program – Park Development.
INGER BASIN DRAINAGE FUND - 017
The Inger Basin Drainage Fund accounts for resources used to provide drainage around the Inger Basin.
BLOSSER ROAD DRAINAGE FUND - 018
The Blosser Road Drainage Fund accounts for resources used to provide drainage along Blosser Road.
BATTLES ROAD DRAINAGE FUND - 019
The Battles Road Drainage Fund accounts for resources used to provide drainage along Battles Road.
GROWTH MITIGATION FUND - 027
The Growth Mitigation Fund accounts for the receipt of developer fees as approved under the State of California Assembly Bill (AB) 1600. AB 1600 allows public agencies to charge developers for the incremental cost of services required by the new development. The use of AB 1600 fees and the need for public improvement must be related to the development. The City's AB 1600 fees are "growth mitigation fees," and are to pay for traffic, recreation and parks facilities, public safety facilities, library facilities, and water/wastewater infrastructure.
RESIDENTIAL DEVELOPMENT TAX FUND - 028
The Residential Development Tax Fund accounts for the acquisition, improvement, and expansion of public parks, playgrounds, or recreation facilities thereon. An amount equal to this tax is collected through the City's Growth Mitigation Fee Program.
NORTHWEST LANDSCAPE DISTRICT FUND - 031
The Northwest Landscape District Fund accounts for property tax revenues that are restricted to providing landscaping-related services in public easements in the northwest section of the City. Costs accounted for in this fund include administration, operations, maintenance, renovation, materials, and equipment.
NORTHEAST LANDSCAPE DISTRICT FUND - 032
The Northeast Landscape District Fund accounts for property tax revenues that are restricted to providing landscaping-related services in public easements in the northeast section of the City. Costs accounted for in this fund include administration, operations, maintenance, renovation, materials, and equipment.
SOUTHWEST LANDSCAPE DISTRICT FUND - 033
The Southwest Landscape District Fund accounts for property tax revenues that are restricted to providing landscaping -related services in public easements in the southwest section of the City, City of Santa Maria 2024-26 Biennial Budget
Appendix F: Description of Funds
F-4
including the Betteravia Plaza Special Benefit Zone. Costs accounted for in this fund include administration, operations, maintenance, renovation, materials, and equipment.
STOWELL PARKING AND LIGHTING FUND - 036
The Stowell Parking and Lighting Fund is used to account for property tax revenues that are restricted to providing lighting and landscaping services to the Stowell Plaza Shopping Center. The Stowell Parking and Lighting Maintenance District was formed in 1961 for parking lot and landscaping maintenance of the Stowell Plaza Shopping Center. The maintenance work is performed by an independent contractor, with the City’s Recreation and Parks Department monitoring the contract and maintenance work. Stowell Plaza Shopping Center’s property owners pay an ad valorem tax.
SOUTHEAST LANDSCAPE DISTRICT FUND - 038
The Southeast Landscape District Fund accounts for property tax revenues that are restricted to providing landscaping -related services in public easements in the southeast section of the City, including the Crossroads Special Benefit Zone and the Enos Ranc h Special Benefit Zone. Costs accounted for in this fund include administration, operations, maintenance, renovation, materials, and equipment.
ECONOMIC DEVELOPMENT FUND - 040
The Economic Development Fund is used to account for an economic development revolving loan program aimed at attracting new businesses and expanding and retaining existing businesses in the community.
SUPPLEMENTAL LAW ENFORCEMENT SERVICE – CITIZENS OPTION FOR PUBLIC SAFETY (COPS) FUND - 045 The Supplemental Law Enforcement Service – COPS Fund accounts for the State of California’s COPS grant fund revenue that is restricted to support front -line law enforcement services with an emphasis on supporting salary and benefits. The City uses this revenue to match a Federal grant to pay for three police officers.
GRANT NON-RECURRING FUND – 047
The Grant Non -Recurring Fund tracks revenues, expenditures, and matching fund requirements for non-recurring grants awarded to the City that do not “fit” within other grant or enterprise funds.
FEDERAL/STATE ASSET FORFEITURE FUND - 046
The Federal/State Asset Forfeiture Fund accounts for all funds received through State and Federal agencies for drug seizures in which the City participates. These funds must be used to supplement, not supplant, the Police Department’s normal operating budget. The amount of revenue varies from year- to-year based on activity levels.
GAS TAX AND TRANSPORTATION DEVELOPMENT ACT FUND - 063
The Gas Tax and Transportation Development Act Fund is used to account for the City’s share of State and Santa Barbara County gasoline tax collected following the provisions of the State's Streets and Highway Code. Revenues are disbursed by the State based on population and used toward the maintenance and repair of City streets that serve as State and County thoroughfares. This fund is used for preventative annual maintenance of streets and appurtenant facilities and the construction of new public infrastru cture within public rights -of-way. It is used for administrative, operational, materials, equipment, and labor costs for the construction of public infrastructure.
Examples of public infrastructure built with gas tax funds include street maintenance, street lighting, concrete repair, and roadway operational improvements.
DEVELOPER / GRANT STREET PROJECTS - FUND - 064
The Developer / Grant Street Projects – Fund is supported by specific street type grants and contributions by developers for the construction of streets and appurtenant facilities. Administrative, materials, equipment, and labor costs associated with street-related projects funded by sources other than gas tax or sales tax revenues are paid from this fund. Examples of public infrastructure built with City of Santa Maria 2024-26 Biennial Budget
Appendix F: Description of Funds
F-5
developer and grant funds include roadway extensions, new bikeways, roadway operational improvements, and roadway safety enhancements.
MEASURE A - 068
Measure A was passed by the voters of Santa Barbara County in November 2008. This extends, for 30 years, the existing half-cent sales tax used to fund local transportation projects that have been in place since the approval of Measure D in 1989. Measure A Fund is used for various City streets and rights -of- way capital projects and administrative, operational, materials, equipment, and labor costs of street - related infrastructure. Measure A also requires that the City dedicate 15 percent of Measure A local funds toward alternative transportation expenditures such as bicycle and pedestrian facilities.
PUBLIC, EDUCATION, AND GOVERNMENT ACCESS TELEVISION FUND - 998 The Public Education and Government Television Fund accounts for annual grant proceeds from the City’s cable television provider, Comcast Cablevision, used for the operation of public, education, and government public access television. The grant runs the term of the State’s franchise agreement with Comcast Cablevision for this region. The grant provides for the capital costs of the public, education, and government public access television.
CAPITAL PROJECT FUNDS
CAPITAL PROJECTS – GENERAL FUND - 801
The Capital Projects – General Fund is used to account for the purchase and construction of capital assets for the General Fund. Appropriations are made annually from the fund.
CAPITAL PROJECTS – COMMUNITY DEVELOPMENT FUND - 948
The Capital Project – Community Development Fund accounts for receipts from the Federal Community Development Block Grant Funds for special projects in the City. workers’ compensation insurance costs, and radio technology.
ENTERPRISE FUNDS
WATER FUND - 002
The Water Fund accounts for all resources used to provide water service to the City, including but not limited to, administration, operations, maintenance, capital acquisition and construction, debt service on the State Water Project, utility billing operations, water distribution costs, and other water -related operations.
OLID WASTE COLLECTION FUND - 003
The Solid Waste Collection Fund accounts for all resources used for residential, commercial, agricultural, industrial solid waste collections, and recycling operations including, but not limited to, administration, maintenance, and capital acquisition.
WASTEWATER FUND - 004
The Wastewater Fund accounts for all resources used to provide sewer service to residents and businesses within the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital acquisition and construction, and the billing and collection of fees associated with sewer-related services.
SOLID WASTE DISPOSAL FUND - 010
The Solid Waste Disposal Fund accounts for all resources used to provide solid waste disposal for residential, commercial, agricultural, and industrial users. This fund also supports the household hazardous waste collection operation at the City’s landfill.
City of Santa Maria 2024-26 Biennial Budget
Appendix F: Description of Funds
F-6
RADIO/TECHNOLOGY FUND – 023
The Radio/Technology Fund accounts, and houses in one location, the cost and anticipated revenues associated with the City’s 700 MHz trunked radio communication system, and other technology - related equipment that can be utilized by partnering with other municipalities and school districts.
PUBLIC TRANSIT FUND - 066
The Public Transit Fund accounts for all resources, including State and Federal funds, used to provide a regional public transportation service known as Santa Maria Regional Transit. All activities necessary to provide such transit -related services are acc ounted for in this fund, including, but not limited to, administration, operations, fixed-route and paratransit, facilities, maintenance, and capital acquisition and construction.
BREEZE FUND - 067
The Breeze Fund accounts for all resources, including State and Federal funds, used to provide Breeze public transit service between Santa Maria and Lompoc, and Santa Maria, Buellton, and Solvang. All activities necessary to provide Breeze services are accounted for in this fund, including, but not limited to, administration, operations, fixed -route, facilities, maintenance, and capital acquisition and construction.
LANDFILL CLOSURE/POST-CLOSURE FUND - 083
The Landfill Closure/Post-Closure Fund accounts for the money necessary to close the City’s 247 -acre landfill. The City is required by State and Federal laws and regulations to assure that the City will complete the closure and post -closure requirements of its landfill site. The City is required to report a portion of closure and post-closure costs as an operating expense. The operation of the landfill requires that the rolling closure of the landfill (closure in phases) continue on an annual basis.
LANDFILL CLOSURE/CORRECTIVE ACTION FUND – 088
The Landfill Closure/Corrective Action Fund is used for the closure/post -closure corrective action for the Santa Maria Integrated Waste Management Facility (SMIWMF) at Los Flores Ranch, and fund operational and reporting requirements per CalRecycle.Header 1
INTERNAL SERVICE FUNDS
MOBILE EQUIPMENT FUND - 007
The Mobile Equipment Fund is used to finance and account for the maintenance and replacement of mobile equipment and rolling stock used by various City departments.
BUSINESS EQUIPMENT FUND - 021
The Business Equipment Fund is used to finance and account for the maintenance and replacement of business equipment used by various City departments.
COMMUNICATION EQUIPMENT FUND - 022
The Communication Equipment Fund is used to finance and account for the maintenance and replacement of city-wide communication systems including the public safety dispatch system.
LIABILITY AND MULTI-PERIL INSURANCE FUND - 070
The Liability and Multi- Peril Insurance Fund accounts for finances relating to commercial insurance, bonds, self -insurance, and excess liability insurance. This fund includes costs for administration and liability claims expenses and costs associated with the Employee Assistance Program and Loss Control Services (employee training).
UNEMPLOYMENT INSURANCE FUND - 072
The Unemployment Insurance Fund monitors unemployment costs associated with City personnel.
City of Santa Maria 2024-26 Biennial Budget
Appendix F: Description of Funds
F-7
SELF-INSURANCE WORKERS’ COMPENSATION FUND - 073
The Self Insurance Workers’ Compensation Fund accounts for the expenses of worker’s compensation claims, the claims administration, and any excess workers' compensation insurance on a citywide basis. The City began self-insuring the workers’ compensation program in 2004-05 while still retaining a catastrophic excess policy.
LOCAL ECONOMIC AUGMENTATION FUND (LEAF) FUND - 076
The Local Economic Augmentation Fund is a reserve fund established in 2000 -01 to be used as the primary financing mechanism to address any potential revenue shortfalls during times of economic downturns or severe State action, so as not to significantly impact the operating budget and service levels of the General Fund. The City Council set aside General Fund proceeds into this account. The intent of this fund is to be used as a “gap financing” mechanism during downturns in the local economy.
TELEPHONE FUND - 078
The Telephone Fund accounts for all citywide expenses associated with telephone hardware. The City tracks equipment used by each department and departments are charged for equipment replacement.
FIDUCIARY AGENCY FUNDS
TREASURER’S TRUST FUND - 081
The Treasurer’s Trust Fund accounts for the receipt and disposition of deposits held for others, such as developers posting funds until the developer fulfills conditions of development.
TWITCHELL MANAGEMENT AUTHORITY TRUST - 087
The Twitchell Management Authority Trust Fund is a court-mandated committee formed to administer relevant provisions of a stipulation water agreement regarding the groundwater basin in the Santa Maria Valley Management Area.
City of Santa Maria 2024-26 Biennial Budget
Appendix F: Description of Funds
F-8
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City of Santa Maria 2024-26 Biennial Budget
Appendix G: List of Expenditure Categories
G-1
APPENDIX G: LIST OF EXPENDITURE CATEGORIES
10 – SALARIES
11 - Regular Full-time employees.
12 - Part-time Part-time employees who work up to 32 hours per week in a budgeted position or limited-service employees who work up to 19 hours per week (shown in full- time equivalency - FTE).
13 - Overtime Covers non-scheduled work hours more than 40 hours per week (excluding fire shift personnel who earn overtime for working in excess of 56 hours per workweek). 14 - Leave Cash
Outs
Payment of vacation, floating holiday, and compensatory time cashed out in accordance with memoranda of understanding and labor laws. 16 - FRINGE BENEFITS
16.1 - Retirement Contributions to either the Public Employees' Retirement System (CalPERS) or the Public Agency Retirement System (PARS) for all full-time and part-time employees.
The rate of contribution is set annually by CalPERS based upon an actuarial study; the PARS contribution is 7.50 percent of covered compensation made by the employee. Employees hired after 1986 are required to pay Medicare tax of 1.45 percent. Contributions also include deferred compensation and costs associated with other post-employment benefits.
16.2 - Group
Insurance
City contributions toward employee health, dental, vision, and life insurance, and workers’ compensation and post-employment health plans. 20 - MATERIALS & SUPPLIES
21 - Utilities – Gas Cost associated with natural gas used and/or consumed in general operations. 22 - Utilities –
Electricity
Cost associated with electrical consumption used in general operations. 23 - Utilities –
Telephone
Charges for telephone service, message unit charges, long -distance telephone calls, faxes, pagers, and cellular telephone services.
24 - Office Supplies
& Materials
Charges for articles used during office work. Such articles may be consumed in the course of normal use, have a short life, or be of nominal value, such as pens, pencils, paper clips, stationery, postage, small furniture, and fixture items. 25 - Special
Departmental
Supplies
Charges for miscellaneous items used and/or consumed in normal work operations and not attributed to any other account.
26 - Utilities – Water Charges for water, sewer, or refuse services.
City of Santa Maria 2024-26 Biennial Budget
Appendix G: List of Expenditure Categories
G-2
27 - Reprographics Costs related to services, photocopies, printing and/or binding City publications, special reports, and annual reports.
30 - EQUIPMENT MAINTENANCE & OPERATIONS
31 - Rental – Fleet
Services
Internal charges associated with fleet vehicles and equipment. A portion of these charges is required to fund future equipment replacement. Also included is vehicle rental from outside agencies.
32 - Maintenance
Agreements
Charges related to service agreements for the maintenance and repair of City - owned equipment.
33 - Other
Maintenance &
Operations
Charges for miscellaneous equipment used in normal work operations and not attributed to any other account for work performed in the areas of electrical, heating, air conditioning, plumbing, landscaping, minor construction, and automotive.
34 - Rental – Business
Equipment
Interfund charges associated with the use of business and/or office equipment used in normal work operations. These charges are required to fund future equipment replacement.
35 - Automotive
Reimbursement
Charges for auto allowance and mileage reimbursement.
36 - Rental –
Communication
Interfund charges associated with the use of communications equipment used in normal work operations. These charges are required to fund future equipment replacement.
37 - Non-Structural
Maintenance
Charges for work performed by City staff to existing facilities. 40 - CONTRACTS & SERVICES
41 - Advertising &
Publication
Costs associated with advertising, placing ads in publications, or posting notices in newspapers, professional journals, and brochures.
42 - Promotion &
Publicity
Costs associated with promoting City events and/or services. 43 - Contractual &
Professional Services
Charges for professional services of a technical or specialized nature, such as appraisers, planners, auditors, data processing, and consultants retained on a per- diem or per-job basis.
44 - Rentals Charges resulting from the rental or leasing of property or equipment. 45 - Insurance &
Surety Bonds
Cost of services related to the City's liability insurance program, either directly or through a joint powers authority.
City of Santa Maria 2024-26 Biennial Budget
Appendix G: List of Expenditure Categories
G-3
46 - Business Expense
& Training
Charges for approved travel and conference expenditures related to training, seminars, and other educational activities that aid City employees in performing their duties.
47 - Memberships,
Dues & Manuals
Charges for memberships and dues in recognized professional organizations. Also includes subscriptions to magazines, periodicals, directories, and technical publications that assist City officials in the performance of prescribed duties. 48 - Professional &
Central Services
Charges for indirect costs associated with grants and other non -General Fund programs.
49 - Reimbursement
Programs
Charges related to programs that will be reimbursed to the City. 50 - CAPITAL OUTLAY
51 - Land Costs associated with the acquisition of real property. 52 - Structures &
Improvements
Costs associated with the improvement or modification of facilities. 53 - Equipment Capital items costing $5,000 or more, with an expected useful life of one year or more.
55 - Special
Payments
Annual payments made to such organizations as the Chamber of Commerce, Museum of Flight, Economic Development Association, and Historical Society. Also includes costs associated with extraordinary litigation claims. 56 – State Water Annual and quarterly purchases of State Water from the Central Coast Water Authority.
60 - DEBT REDEMPTION AND FUND TRANSFERS
61 - Retirement of
Principal
Amounts repaid on principal balance of borrowed funds.
62 - Interest Expenses Cost of money borrowed for short or long periods. 63 - Bond Issue
Expenses
Costs related to financing issues of bonds, notes, etc. 66 - Fund Transfers Transactions recorded to report operating and capital costs incurred by one fund for the benefit of another fund.
70 – RESERVES
71 - Appropriated
Reserve
The segregation of the portion of fund balance reserved for encumbrances outstanding at year-end which would result in subsequent year expenditures.
City of Santa Maria 2024-26 Biennial Budget
Appendix G: List of Expenditure Categories
G-4
72 - Emergency
Reserve
Reserve created for the purpose of providing for economic uncertainty. 73 - Capital Outlay
Reserve
Reserve created for the purchase of land, structures, and improvements. 74 - Fixed Asset
Replacement
Reserve
Provision is made for the costs of deterioration of fixed assets over the life of the assets.
City of Santa Maria 2024-26 Biennial Budget
Appendix G: List of Expenditure Categories
G-5
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City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-1
APPENDIX H: SCHEMATIC LIST OF CLASSES
City of Santa Maria
Schematic Full-Time Bi-Weekly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H ACCOUNT CLERK - SCALE HOUSE g 1,792.84 1,882.48 1,976.60 2,075.43 2,179.20
ACCOUNT CLERK I g 1,749.07 1,836.52 1,928.35 2,024.77 2,126.01
ACCOUNT CLERK II g 1,934.36 2,031.08 2,132.63 2,239.26 2,351.22
ACCOUNTING TECHNICIAN I g 2,124.16 2,230.37 2,341.89 2,458.98 2,581.93
ACCOUNTING TECHNICIAN II g 2,342.40 2,459.52 2,582.50 2,711.63 2,847.21
ACCOUNTING TECHNICIAN III g 2,459.51 2,582.49 2,711.61 2,847.19 2,989.55
ADMINISTRATIVE ASSISTANT g 2,331.53 2,448.11 2,570.52 2,699.05 2,834.00
ADMINISTRATIVE LEADER m 3,458.64 3,614.28 3,776.92 3,946.88 4,124.49 4,310.09 4,504.04 4,706.72 ARFF SPECIALIST I f 2,660.59 2,793.62 2,933.30 3,079.97 3,233.97
ARFF SPECIALIST II f 2,926.60 3,072.93 3,226.58 3,387.91 3,557.31
ASSISTANT CITY ATTORNEY (Org Leader
Broadband - Non Safety)
m 6,209.15 - - - 10,348.58
ASSISTANT CITY MANAGER (Corp Leader
Broadband - Non Safety)
m 7,864.91 - - - 12,004.34
ASSISTANT PLANNER g 2,386.39 2,505.71 2,631.00 2,762.55 2,900.68
ASSISTANT TO THE CITY MANAGER m 4,472.45 4,696.07 4,930.87 5,177.41 5,436.28
ASSOCIATE PLANNER g 3,010.89 3,161.43 3,319.50 3,485.48 3,659.75
ASST DIR OF RECREATION & PARKS (Org Leader
Broadband - Non Safety)
m 6,209.15 - - - 10,348.58
AUTOMOTIVE SERVICE WRITER g 2,533.34 2,660.01 2,793.01 2,932.66 3,079.29
BUILDING DIVISION MANAGER m 4,867.99 5,111.39 5,366.96 5,635.31 5,917.08
BUILDING INSPECTOR I g 2,517.25 2,643.11 2,775.27 2,914.03 3,059.73
BUILDING INSPECTOR II g 2,775.92 2,914.72 3,060.46 3,213.48 3,374.15
BUILDING PERMIT TECHNICIAN I g 2,156.35 2,264.17 2,377.38 2,496.25 2,621.06
BUILDING PERMIT TECHNICIAN II g 2,386.65 2,505.98 2,631.28 2,762.84 2,900.98
BUSINESS LEADER m 4,918.53 5,139.86 5,371.16 5,612.86 5,865.44 6,129.38 6,405.21 6,693.44 BUSINESS PROGRAM LEADER (Broadband) m 3,458.64 - - - 6,295.25
BUSINESS SYSTEMS ANALYST m 3,843.08 4,035.23 4,236.99 4,448.84 4,671.28
CAD TECHNICIAN g 2,643.52 2,775.70 2,914.49 3,060.21 3,213.22
CHIEF BUILDING INSPECTOR g 3,059.46 3,212.43 3,373.05 3,541.70 3,718.79
CHIEF DEPUTY CITY CLERK m 4,330.10 4,546.61 4,773.94 5,012.64 5,263.27
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-2
City of Santa Maria
Schematic Full-Time Bi-Weekly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H CHIEF HUMAN RESOURCES OFFICER (Corp Leader
Broadband - Non Safety)
m 7,864.91 - - - 12,004.34
CHIEF INFORMATION OFFICER (Corp Leader
Broadband - Non Safety)
m 7,864.91 - - - 12,004.34
CHIEF OF POLICE (Corp Leader Broadband -
Safety)
psmp 8,319.23 - - - 12,478.85
CHIEF PUBLIC WORKS INSPECTOR g 2,680.06 2,814.06 2,954.76 3,102.50 3,257.63
CITY ATTORNEY (Corp Leader Broadband - Non
Safety)
m 7,864.91 - - - 12,004.34
CITY MANAGER (Broadband) m 9,766.02 - - - 13,906.52
CODE ENFORCEMENT OFFICER I g 2,327.73 2,444.12 2,566.33 2,694.65 2,829.38
CODE ENFORCEMENT OFFICER II g 2,541.92 2,669.02 2,802.47 2,942.59 3,089.72
CODE ENFORCEMENT SUPERVISOR g 3,059.60 3,212.58 3,373.21 3,541.87 3,718.96
CODE ENFORCEMENT TECHNICIAN g 1,872.00 1,965.60 2,063.88 2,167.07 2,275.42
COMMUNITY PROGRAMS MANAGER m 4,179.80 4,388.79 4,608.23 4,838.64 5,080.57
CONFIDENTIAL OFFICE CLERK I m 1,573.80 1,652.49 1,735.11 1,821.87 1,912.96
CONFIDENTIAL OFFICE CLERK II m 1,738.87 1,825.81 1,917.10 2,012.96 2,113.61
CONFIDENTIAL SECRETARY m 2,174.87 2,283.61 2,397.79 2,517.68 2,643.56
CONFIDENTIAL TECHNICIAN I m 2,174.87 2,283.61 2,397.79 2,517.68 2,643.56
CONFIDENTIAL TECHNICIAN II m 2,397.79 2,517.68 2,643.56 2,775.74 2,914.53
CONFIDENTIAL TECHNICIAN III m 2,775.75 2,914.54 3,060.27 3,213.28 3,373.94
CORPORATE/EXECUTIVE LEADER - NON SAFETY
(Broadband)
m 7,864.91 - - - 12,004.34
CORPORATE/EXECUTIVE LEADER - SAFETY
(Broadband)
psm 8,319.23 - - - 12,478.85
CREW LEADER/MAINTENACE SPECIALIST g 2,280.46 2,394.48 2,514.20 2,639.91 2,771.91
CRIME ANALYST g 2,729.57 2,866.05 3,009.35 3,159.82 3,317.81
CRIME LAB AND EVIDENCE SUPV pn 4,157.81 4,365.70 4,583.99 4,813.19 5,053.85
CRIMINALISTICS TECHNICIAN I pn 2,594.47 2,724.19 2,860.40 3,003.42 3,153.59
CRIMINALISTICS TECHNICIAN II pn 3,363.72 3,531.91 3,708.51 3,893.94 4,088.64
CUSTOMER SERVICE CLERK g 1,506.06 1,581.36 1,660.43 1,743.45 1,830.62
CUSTOMER SERVICE TECHNICIAN g 2,193.40 2,303.07 2,418.22 2,539.13 2,666.09
DEPUTY BUILDING OFFICIAL m 3,894.39 4,089.11 4,293.57 4,508.25 4,733.66
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-3
City of Santa Maria
Schematic Full-Time Bi-Weekly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H DEPUTY CITY CLERK m 2,408.16 2,528.57 2,655.00 2,787.75 2,927.14
DEPUTY CITY MANAGER m 5,951.96 6,249.56 6,562.04 6,890.14 7,234.65
DEPUTY DIRECTOR - SOLID WASTE (Org Leader
Broadband - Non Safety)
m 6,209.15 - - - 10,348.58
DEPUTY FIRE CHIEF (Org Leader Broadband-
Safety)
psmf 6,447.41 - - - 10,607.03
DIGITAL FORENSICS EXAMINER pn 3,628.46 3,809.88 4,000.37 4,200.39 4,410.41
DIR OF COMMUNITY DEVELOPMENT (Corp Leader
Broadband - Non Safety)
m 7,864.91 - - - 12,004.34
DIR OF PUBLIC WORKS (Corp Leader Broadband -
Non Safety)
m 7,864.91 - - - 12,004.34
DIR OF RECREATION & PARKS (Corp Leader
Broadband - Non Safety)
m 7,864.91 - - - 12,004.34
DIRECTOR OF FINANCE (Corp Leader Broadband
- Non Safety)
m 7,864.91 - - - 12,004.34
DIRECTOR OF UTILITIES (Corp Leader Broadband -
Non Safety)
m 7,864.91 - - - 12,004.34
DISPATCHER I pn 2,528.10 2,654.51 2,787.24 2,926.60 3,072.93
DISPATCHER II pn 2,932.60 3,079.23 3,233.19 3,394.85 3,564.59
ELECTRICIAN I g 2,656.92 2,789.77 2,929.26 3,075.72 3,229.51
ELECTRICIAN II g 3,075.72 3,229.51 3,390.99 3,560.54 3,738.57
ENGINEER I g 3,060.17 3,213.18 3,373.84 3,542.53 3,719.66
ENGINEER II g 3,373.86 3,542.55 3,719.68 3,905.66 4,100.94
ENGINEER III g 3,719.70 3,905.69 4,100.97 4,306.02 4,521.32
ENGINEERING TECH II g 2,382.31 2,501.43 2,626.50 2,757.83 2,895.72
ENGINEERING TECH III g 2,643.52 2,775.70 2,914.49 3,060.21 3,213.22
EQUIPMENT MECHANIC I g 2,200.20 2,310.21 2,425.72 2,547.01 2,674.36
EQUIPMENT MECHANIC II g 2,371.09 2,489.64 2,614.12 2,744.83 2,882.07
EXECUTIVE ASSISTANT m 2,954.65 3,102.38 3,257.50 3,420.38 3,591.40
FACILITIES SUPERVISOR g 3,208.25 3,368.66 3,537.09 3,713.94 3,899.64
FIELD MECHANIC g 2,492.31 2,616.93 2,747.78 2,885.17 3,029.43
FINANCE CLERK I g 1,792.86 1,882.50 1,976.63 2,075.46 2,179.23
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-4
City of Santa Maria
Schematic Full-Time Bi-Weekly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H FINANCE CLERK II g 1,977.00 2,075.85 2,179.64 2,288.62 2,403.05
FINANCE LEAD CLERK g 2,174.74 2,283.48 2,397.65 2,517.53 2,643.41
FIRE BATTALION CHIEF psmf 6,000.81 6,300.85 6,615.89 6,946.68 7,294.01
FIRE CAPTAIN f 3,681.37 3,865.44 4,058.71 4,261.65 4,474.73
FIRE CHIEF (Corp Leader Broadband - Safety) psmf 8,319.23 - - - 12,478.85
FIRE ENGINEER f 3,233.58 3,395.26 3,565.02 3,743.27 3,930.43
FIRE FIGHTER f 2,926.60 3,072.93 3,226.58 3,387.91 3,557.31
FIRE FIGHTER IN TRAINING f 2,191.45 2,301.02 2,416.07 2,536.87 2,663.71
FIRE INSPECTOR I f 2,553.12 2,680.78 2,814.82 2,955.56 3,103.34
FIRE INSPECTOR II f 2,814.83 2,955.57 3,103.35 3,258.52 3,421.45
FIRE MARSHAL m 5,861.06 6,154.11 6,461.82 6,784.91 7,124.16
FIRE PREVENTION OFFICER I f 2,660.59 2,793.62 2,933.30 3,079.97 3,233.97
FIRE PREVENTION OFFICER II f 2,926.60 3,072.93 3,226.58 3,387.91 3,557.31
FLEET SERVICES SUPERVISOR g 3,368.69 3,537.12 3,713.98 3,899.68 4,094.66
GIS ANALYST g 3,608.37 3,788.79 3,978.23 4,177.14 4,386.00
GIS MANAGER m 3,730.32 3,916.84 4,112.68 4,318.31 4,534.23
GIS TECHNICIAN I g 2,811.50 2,952.08 3,099.68 3,254.66 3,417.39
GIS TECHNICIAN II g 3,099.67 3,254.65 3,417.38 3,588.25 3,767.66
GRANTS SPECIALIST I g 2,454.82 2,577.56 2,706.44 2,841.76 2,983.85
GRANTS SPECIALIST II g 2,706.46 2,841.78 2,983.87 3,133.06 3,289.71
GROUNDSKEEPER g 1,663.99 1,747.19 1,834.55 1,926.28 2,022.59
HEAVY EQUIPMENT MECHANIC g 2,692.55 2,827.18 2,968.54 3,116.97 3,272.82
HOUSING & COMMUNITY SERVICE TECHNICIAN g 2,386.65 2,505.98 2,631.28 2,762.84 2,900.98
INVESTIGATIVE SPECIALIST pn 2,515.88 2,641.67 2,773.75 2,912.44 3,058.06
INVESTIGATIVE SPECIALIST I (Flex) pn 2,515.88 2,641.67 2,773.75 2,912.44 3,058.06
INVESTIGATIVE SPECIALIST II (Flex) pn 2,773.76 2,912.45 3,058.07 3,210.97 3,371.52
LABORATORY COORDINATOR g 2,962.75 3,110.89 3,266.43 3,429.75 3,601.24
LANDFILL HEAVY EQUIP LEAD OPR g 2,590.59 2,720.12 2,856.13 2,998.94 3,148.89
LANDFILL HEAVY EQUIP OPR g 2,349.69 2,467.17 2,590.53 2,720.06 2,856.06
LANDFILL HEAVY EQUIP OPR II g 2,467.17 2,590.53 2,720.06 2,856.06 2,998.86
LEAD CUSTOMER SERVICE TECHNICIAN g 2,618.05 2,748.95 2,886.40 3,030.72 3,182.26
LEAD MECHANIC g 2,747.81 2,885.20 3,029.46 3,180.93 3,339.98
LEAD POLICE SERVICE TECHNICIAN pn 2,629.14 2,760.60 2,898.63 3,043.56 3,195.74
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-5
City of Santa Maria
Schematic Full-Time Bi-Weekly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H LEAD WASTEWATER OPERATOR g 3,090.40 3,244.92 3,407.17 3,577.53 3,756.41
LEAD WATER OPERATOR g 3,090.40 3,244.92 3,407.17 3,577.53 3,756.41
LEGAL OFFICE SPECIALIST - CONFIDENTIAL m 2,775.75 2,914.54 3,060.27 3,213.28 3,373.94
LIBRARIAN I g 2,289.79 2,404.28 2,524.49 2,650.71 2,783.25
LIBRARIAN II g 2,529.93 2,656.43 2,789.25 2,928.71 3,075.15
LIBRARIAN III m 4,266.77 4,480.11 4,704.12 4,939.33 5,186.30
LIBRARY ASSISTANT I g 1,932.62 2,029.25 2,130.71 2,237.25 2,349.11
LIBRARY ASSISTANT II g 2,130.99 2,237.54 2,349.42 2,466.89 2,590.23
LIBRARY CLERK g 1,506.06 1,581.36 1,660.43 1,743.45 1,830.62
LIBRARY DIRECTOR (Corp Leader Broadband -
Non Safety)
m 7,864.91 - - -
12,004.34
LIBRARY TECHNICIAN g 2,125.23 2,231.49 2,343.06 2,460.21 2,583.22
MAINTENANCE WORKER I g 1,794.91 1,884.66 1,978.89 2,077.83 2,181.72
MAINTENANCE WORKER II g 1,934.36 2,031.08 2,132.63 2,239.26 2,351.22
OFFICE ASSISTANT I g 1,506.06 1,581.36 1,660.43 1,743.45 1,830.62
OFFICE ASSISTANT II g 1,663.99 1,747.19 1,834.55 1,926.28 2,022.59
ORGANIZATIONAL / ENTERPRISE LEADER - NON
SAFETY (Broadband)
m 6,209.15 - - -
10,348.58
ORGANIZATIONAL / ENTERPRISE LEADER -
SAFETY (Broadband)
psm 6,447.41 - - -
10,607.03
OUTREACH COORDINATOR g 2,156.35 2,264.17 2,377.38 2,496.25 2,621.06
PARK SERVICE OFFICER g 1,841.76 1,933.85 2,030.54 2,132.07 2,238.67
PARK SERVICES OFFICER II g 2,234.79 2,346.53 2,463.86 2,587.05 2,716.40
PARK SERVICES OFFICER III g 2,726.43 2,862.75 3,005.89 3,156.18 3,313.99
PARKS & FOREST SUPERVISOR g 3,181.43 3,340.50 3,507.53 3,682.91 3,867.06
PEG PRODUCTION MANAGER m 2,979.48 3,128.45 3,284.87 3,449.11 3,621.57
PLAN CHECK ENGINEER m 4,724.94 4,961.19 5,209.25 5,469.71 5,743.20
PLANNING DIVISION MANAGER m 5,988.50 6,287.93 6,602.33 6,932.45 7,279.07
PLANNING TECHNICIAN g 2,177.92 2,286.82 2,401.16 2,521.22 2,647.28
PLANS EXAMINER g 2,910.57 3,056.10 3,208.91 3,369.36 3,537.83
POLICE CORPORAL p 3,650.13 3,832.64 4,024.27 4,225.48 4,436.75
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-6
City of Santa Maria
Schematic Full-Time Bi-Weekly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H POLICE DIVISION COMMANDER (Org Leader
Broadband - Safety)
psmp 6,447.41 - - -
10,607.03
POLICE LIEUTENANT pmm 5,725.95 6,012.25 6,312.86 6,628.50 6,959.93
POLICE OFFICER p 3,386.97 3,556.32 3,734.14 3,920.85 4,116.89
POLICE RECORDS SUPERVISOR g 2,685.95 2,820.25 2,961.26 3,109.32 3,264.79
POLICE RECORDS TECH-DETECTIVES g 2,205.00 2,315.25 2,431.01 2,552.56 2,680.19
POLICE RECORDS TECHNICIAN I g 2,041.79 2,143.88 2,251.07 2,363.62 2,481.80
POLICE RECORDS TECHNICIAN II g 2,205.00 2,315.25 2,431.01 2,552.56 2,680.19
POLICE SERGEANT pmm 4,622.39 4,853.51 5,096.19 5,351.00 5,618.55
POLICE SERVICES TECHNICIAN pn 2,384.71 2,503.95 2,629.15 2,760.61 2,898.64
POLICE TRAINEE pn 2,842.06 2,984.16 3,133.37 3,290.04 3,454.54
PRINCIPAL CIVIL ENGINEER m 5,270.93 5,534.48 5,811.20 6,101.76 6,406.85
PRINCIPAL PLANNER m 4,701.33 4,936.40 5,183.22 5,442.38 5,714.50
PROGRAM LEADER m 4,124.48 4,310.08 4,504.04 4,706.72 4,918.52 5,139.85 5,371.15 5,612.86 PROPERTY-EVIDENCE CLERK g 2,382.67 2,501.80 2,626.89 2,758.23 2,896.14
PUBLIC WORKS INSPECTOR g 2,430.91 2,552.46 2,680.08 2,814.08 2,954.78
PUBLIC WORKS OPERATIONS MGR m 4,867.99 5,111.39 5,366.96 5,635.31 5,917.08
PUBLIC WORKS TECHNICIAN I g 2,156.35 2,264.17 2,377.38 2,496.25 2,621.06
PUBLIC WORKS TECHNICIAN II g 2,386.65 2,505.98 2,631.28 2,762.84 2,900.98
RECREATION COORDINATOR g 2,291.84 2,406.43 2,526.75 2,653.09 2,785.74
RECREATION SUPERVISOR g 2,652.43 2,785.05 2,924.30 3,070.52 3,224.05
RECREATION TECHNICIAN g 2,156.35 2,264.17 2,377.38 2,496.25 2,621.06
REGULATORY COMPLIANCE MANAGER m 4,867.99 5,111.39 5,366.96 5,635.31 5,917.08
REGULATORY COMPLIANCE SPECIALIST I g 2,420.65 2,541.68 2,668.76 2,802.20 2,942.31
REGULATORY COMPLIANCE SPECIALIST II g 2,668.76 2,802.20 2,942.31 3,089.43 3,243.90
REGULATORY COMPLIANCE SUPERVISOR g 3,059.60 3,212.58 3,373.21 3,541.87 3,718.96
SECRETARY g 2,050.37 2,152.89 2,260.53 2,373.56 2,492.24
SECRETARY TO THE CITY MANAGER m 2,688.74 2,823.18 2,964.34 3,112.56 3,268.19
SENIOR ASSISTANT CITY ATTORNEY (Org Leader
Broadband - Non Safety)
m 6,209.15 - - -
10,348.58
SENIOR BUILDING PERMIT TECH g 2,547.17 2,674.53 2,808.26 2,948.67 3,096.10
SENIOR CIVIL ENGINEER g 4,073.98 4,277.68 4,491.56 4,716.14 4,951.95
SENIOR CREW LEADER-MAINT SPEC g 2,394.47 2,514.19 2,639.90 2,771.90 2,910.50
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-7
City of Santa Maria
Schematic Full-Time Bi-Weekly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H SENIOR DISPATCHER pn 3,234.64 3,396.37 3,566.19 3,744.50 3,931.73
SENIOR PARK SERVICES OFFICER g 3,349.86 3,517.35 3,693.22 3,877.88 4,071.77
SENIOR PLANNER g 3,549.61 3,727.09 3,913.44 4,109.11 4,314.57
SENIOR PLANS EXAMINER g 3,373.86 3,542.55 3,719.68 3,905.66 4,100.94
SENIOR POLICE RECORDS TECH g 2,315.25 2,431.01 2,552.56 2,680.19 2,814.20
SENIOR PROJECT MANAGER m 4,472.45 4,696.07 4,930.87 5,177.41 5,436.28
SENIOR SYSTEMS ANALYST m 4,812.24 5,052.85 5,305.49 5,570.76 5,849.30
SENIOR TRAFFIC SIGNAL TECH g 2,856.01 2,998.81 3,148.75 3,306.19 3,471.50
SHAREPOINT DEVELOPER g 3,680.95 3,865.00 4,058.25 4,261.16 4,474.22
SOLID WASTE COLLECTIONS SUPV g 3,333.47 3,500.14 3,675.15 3,858.91 4,051.86
SOLID WASTE EQUIP CREW LDR g 2,289.03 2,403.48 2,523.65 2,649.83 2,782.32
SOLID WASTE EQUIP LEAD OPR g 2,531.50 2,658.08 2,790.98 2,930.53 3,077.06
SOLID WASTE EQUIPMENT OPR I g 2,137.26 2,244.12 2,356.33 2,474.15 2,597.86
SOLID WASTE EQUIPMENT OPR II g 2,180.00 2,289.00 2,403.45 2,523.62 2,649.80
SOLID WASTE LANDFILL SUPV g 3,333.47 3,500.14 3,675.15 3,858.91 4,051.86
SOLID WASTE MANAGER m 5,270.93 5,534.48 5,811.20 6,101.76 6,406.85
SPECIAL DISTRICTS COORDINATOR g 3,181.43 3,340.50 3,507.53 3,682.91 3,867.06
SPECIAL DISTRICTS SUPERVISOR g 3,548.99 3,726.44 3,912.76 4,108.40 4,313.82
SPECIAL DISTRICTS TECHNICIAN g 2,454.32 2,577.04 2,705.89 2,841.18 2,983.24
STREET MAINT SUPERVISOR g 3,208.25 3,368.66 3,537.09 3,713.94 3,899.64
SYSTEMS ANALYST I g 3,337.92 3,504.82 3,680.06 3,864.06 4,057.26
SYSTEMS ANALYST II g 3,680.95 3,865.00 4,058.25 4,261.16 4,474.22
TRAFFIC SIGNAL TECHNICIAN g 2,656.76 2,789.60 2,929.08 3,075.53 3,229.31
TRANSIT ASSISTANT g 1,663.99 1,747.19 1,834.55 1,926.28 2,022.59
TRANSIT COORDINATOR g 2,339.62 2,456.60 2,579.43 2,708.40 2,843.82
TRANSIT PLANNER g 3,024.98 3,176.23 3,335.04 3,501.79 3,676.88
TRANSIT SERVICES MANAGER m 4,867.99 5,111.39 5,366.96 5,635.31 5,917.08
UTILITIES ACCOUNTING TECH I g 2,124.16 2,230.37 2,341.89 2,458.98 2,581.93
UTILITIES ACCOUNTING TECH II g 2,342.40 2,459.52 2,582.50 2,711.63 2,847.21
UTILITIES ACCOUNTING TECH III g 2,459.51 2,582.49 2,711.61 2,847.19 2,989.55
UTILITIES OUTREACH SPECIALIST g 1,928.09 2,024.49 2,125.71 2,232.00 2,343.60
UTILITIES TECHNOLOGY ANALYST g 3,337.92 3,504.82 3,680.06 3,864.06 4,057.26
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-8
City of Santa Maria
Schematic Full-Time Bi-Weekly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E Step F Step G Step H UTILITY BILLING LEAD CLERK g 2,174.74 2,283.48 2,397.65 2,517.53 2,643.41
UTILITY BILLING SUPERVISOR g 2,283.46 2,397.63 2,517.51 2,643.39 2,775.56
WASTEWATER OPERATOR g 2,618.05 2,748.95 2,886.40 3,030.72 3,182.26
WASTEWATER OPERATOR I g 2,325.08 2,441.33 2,563.40 2,691.57 2,826.15
WASTEWATER OPERATOR II g 2,618.05 2,748.95 2,886.40 3,030.72 3,182.26
WASTEWATER OPERATOR III g 2,886.41 3,030.73 3,182.27 3,341.38 3,508.45
WASTEWATER OPERATOR TRAINEE g 2,325.08 2,441.33 2,563.40 2,691.57 2,826.15
WASTEWATER SUPERVISOR g 3,830.42 4,021.94 4,223.04 4,434.19 4,655.90
WATER CONSERVATION SPECIALIST g 1,934.36 2,031.08 2,132.63 2,239.26 2,351.22
WATER OPERATOR g 2,618.05 2,748.95 2,886.40 3,030.72 3,182.26
WATER OPERATOR I g 2,325.08 2,441.33 2,563.40 2,691.57 2,826.15
WATER OPERATOR II g 2,618.05 2,748.95 2,886.40 3,030.72 3,182.26
WATER OPERATOR III g 2,886.41 3,030.73 3,182.27 3,341.38 3,508.45
WATER OPERATOR TRAINEE g 2,325.08 2,441.33 2,563.40 2,691.57 2,826.15
WATER RESOURCES LEAD OPERATOR g 3,140.26 3,297.27 3,462.13 3,635.24 3,817.00
WATER RESOURCES MANAGER m 5,270.93 5,534.48 5,811.20 6,101.76 6,406.85
WATER RESOURCES OPERATOR g 2,848.27 2,990.68 3,140.21 3,297.22 3,462.08
WATER SUPERVISOR g 3,830.42 4,021.94 4,223.04 4,434.19 4,655.90
WATER SYSTEM OPERATOR I g 2,268.43 2,381.85 2,500.94 2,625.99 2,757.29
WATER SYSTEM OPERATOR II g 2,554.11 2,681.82 2,815.91 2,956.71 3,104.55
Association Code Bargaining Unit Full Name
F Local 2020 Fire Fighters Union Local 2020
M NMAC Non-Represented Management & Confidential Employees PN Police - Non Sworn Police Officers Association
P Police - Sworn Police Officers Association
PSMF PSM - Fire Public Safety Managers
G SEIU - Full-Time Service Employees International Union PMM SMPAMM Santa Maria Police Association of Middle Managers E No Unit
Z SEIU (PT) Service Employees International Union
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-9
City of Santa Maria
Schematic Hourly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E
ACCOUNT CLERK AIDE z 19.96 20.96 22.01 23.11 24.27
ADMINISTRATIVE AIDE I e 21.07 22.12 23.23 - -
ADMINISTRATIVE AIDE II e 24.39 25.62 26.89 - -
ADMINISTRATIVE AIDE III e 28.33 29.75 31.24 - -
ASSIST LIBRARY TECHNICIAN e 16.75 17.59 18.47 - -
ASSISTANT CLERK - OFFICE e 16.00 16.80 17.64 - -
ASST PUBLIC WORKS INSPECTOR e 29.06 30.51 32.04 - -
AQUATICS SAFETY & EDUCATIONAL SPEC e 17.90 18.80 19.74 - - BUSINESS PROGRAM LEADER I (Broadband) mpt 41.17 - - - 52.98 CERTIFIED DISPATCH AIDE e 31.44 33.01 34.66
CLERK II z 17.23 18.09 18.99 19.94 20.94
COMMUNITY OUTREACH COORDINATOR z 24.35 25.57 26.85 28.19 29.60 CONSULTANT I e 39.92 41.92 44.02 - -
CONSULTANT II e 46.23 48.53 50.96 - -
CONSULTANT III e 53.85 56.54 59.36 - -
CONSULTANT IV e 63.04 68.29 73.54 - -
CUSTOMER SERVICE PHONE OPER* e 16.00 16.80 17.64 - -
EMERGENCY SERVICES SPECIALIST z 33.41 35.08 36.83 38.67 40.60 EXECUTIVE CONSULTANT e 112.00 117.60 123.48
FACILITY SPECIALIST II z 20.52 21.55 22.63 23.76 24.95
FACILITY SPECIALIST III z 22.07 23.17 24.33 25.55 26.83 GENERAL LABORER e 16.00 16.80 17.64 - -
GRAPHICS TECHNICIAN z 18.96 19.91 20.91 21.96 23.06
INTERIM DIRECTOR I e 63.04 68.29 73.54 - -
INTERIM DIRECTOR II e 78.80 84.05 89.30 - -
INTERIM DIRECTOR III e 94.55 99.81 105.06 - -
INTERN - GENERAL e 16.00 16.80 17.64 - -
INTERN - PROFESSION e 16.00 16.80 17.64 - -
INVESTIGATIVE OFFICER I e 73.54 0.00 0.00 - -
INVESTIGATIVE OFFICER II e 105.06 0.00 0.00 - -
LABORER III z 18.11 19.02 19.97 20.97 22.02
LIBRARY PAGE e 16.00 16.80 17.64 - -
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
H-10
City of Santa Maria
Schematic Hourly Rates
Effective 05/21/2024
Description Assoc. Step A Step B Step C Step D Step E
LIBRARY TECHNICAL ASSISTANT z 20.49 21.51 22.59 23.72 24.91 LIFEGUARD e 16.00 16.80 17.64 - -
MAINTENANCE TECHNICIAN e 16.00 16.80 17.64 - -
MULTIMEDIA ASSISTANT e 16.00 16.80 17.64 - -
PARK SERVICES AIDE e 16.00 16.80 17.64 - -
PARK SERVICES COORDINATOR z 42.48 44.60 46.83 49.17 51.63 POLICE CADET e 16.75 17.59 18.47 - -
POLICE RECORDS CLERK z 18.98 19.93 20.93 21.98 23.08
PROVISIONAL OFFICER e 39.91 41.91 44.01 46.21 48.52
RECREATION ACTIVITY SPECIALIST z 18.30 19.22 20.18 21.19 22.25 RECREATION LEADER II e 16.00 16.80 17.64 - -
REGULATORY COMPLIANCE CLERK e 16.00 16.80 17.64 - -
RESERVE POLICE OFFICER LEVEL 1 e 21.01 - - - -
RESERVE POLICE OFFICER LEVEL 2 e 17.86 - - - -
SECURITY GUARD z 20.81 21.85 22.94 24.09 25.29
SENIOR LIFEGUARD z 20.21 21.22 22.28 23.39 24.56
SKILLED LABORER e 22.02 23.12 24.28 - -
STAFF AIDE - FACILITIES e 16.00 16.80 17.64 - -
STAFF ASSISTANT z 17.60 18.48 19.40 20.37 21.39
SWIM INSTRUCTOR e 17.90 18.80 19.74 - -
SWIM POOL CLERK e 16.00 16.80 17.64 - -
TECHNICAL AIDE I e 16.00 16.80 17.64 - -
TECHNICAL AIDE II e 16.00 16.80 17.64 - -
TECHNICAL AIDE III e 18.20 19.11 20.06 - -
TEMPORARY PLANNER e 34.84 36.59 38.41 - -
TRANSIT TECHNICIAN z 20.49 21.51 22.59 23.72 24.91
City of Santa Maria 2024-26 Biennial Budget
Appendix H: Schematic List of Classes
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City of Santa Maria 2024-26 Biennial Budget
Appendix I: Summary of Employee Compensation and Benefits I-1
APPENDIX I: SUMMARY OF EMPLOYEE COMPENSATION AND BENEFITS The purpose of this summary is to depict a historical overview of the total City cost for employee compensation and benefits. The total City estimated cost for employee health and retirement benefits in 2024-25 equates to $48,734,634. This summary is provided to give the reviewer an understanding of the magnitude of the costs associated with the City paying a portion of employee compensation and benefits.
Actual
2022-23
Adopted
2023-24
Proposed
2024-25
Proposed
2025-26
Employee Compensation and Benefits
Health Benefits $ 14,380,600 $ 17,863,883 $ 20,456,525 $ 21,175,846 Retirement 21,634,495 24,988,650 28,278,109 29,364,285
Compensated Absences 7,590,224 8,987,141 10,156,544 10,877,925 Other Post-Employment Benefits 1,747,411 559,110 425,500 446,720
HEALTH BENEFITS
The City provides a variety of health benefits including medical, dental, vision, and life insurance to its full-time and part-time employees. The City contributes $149 per month toward the medical premiums and varying amounts for other health benefits as stipulated in current labor agreements. The City also provides post-retirement health benefits, in accordance with State statu tes, to all employees retiring from the City who are enrolled in an insurance program under the California Public Employees’ Medical and Hospital Act. For retirees, the City is required by the California Employees’ Retirement System (CalPERS) to contribute $149 per month per retiree. The balance of premiums, which average approximately $ 691 per month, is paid by retirees. The City contributes a pre -established monthly contribution to the post -employment health benefits and the benefits are provided after separation from the City on a pay-as-you-go basis.
RETIREMENT
The City contributes to the CalPERS, an agent multiple -employer public employee defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost -of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of CalPERS’ annual financial report may be obtained from its Executive Office – 400 Q Street, Sacramento, CA 95811.
Participants in CalPERS are required to contribute a percentage of their annual covered salary toward the CalPERS pension plan. The City’s CalPERS plan has a three -tier structure and is applicable to full- time and part-time employees. Employees hired on or before July 1, 2011, are in Tier I, employees hired after July 1, 2011, but before January 1, 2013, are in Tier II and employees hired on or after January 1, 2013, are in Tier III. The City has negotiated cost-sharing agreements with most of its bargaining groups.
Pursuant to these agreements, employees contribute between 2 percent and 13 percent of the City’s CalPERS contribution. The City does not contribute any portion of the employee-required contribution for Tier II or Tier III employees. Approximately 70 percent of full-time and part-time employees are in Tier II and III. However, the City is required to make annual contributions (the employer’s share), for all tiers, at an actuarially determined rate, as well as separate payments for unfunded liability.
The chart on the following page shows required contribution rates (including unfunded liability) for 2022-23 and estimated rates for 2023-24:
City of Santa Maria 2024-26 Biennial Budget
Appendix I: Summary of Employee Compensation and Benefits I
-2
Required Contribution Rates
2024-25 2025-26
Tier I Tier II Tier III Tier I Tier II Tier III
Police
Employee 9.00% 9.00% 13.00% 9.00% 9.00% 13.00%
City* 86.37% 24.08% 14.62% 89.20% 24.72% 15.22%
Fire
Employee 9.00% 9.00% 13.75% 9.00% 9.00% 13.75%
City* 71.89% 26.46% 16.10% 74.21% 26.50% 16.96%
General
Employee 8.00% 7.00% 7.00% 8.00% 7.00% 7.00%
City* 40.79% 40.79% 40.79% 40.58% 40.58% 40.58%
* Includes unfunded liability payments converted to a percent of payroll.
All seasonal and temporary employees, and all other employees not covered by CalPERS are covered by the Public Agency Retirement System (PARS) pursuant to the requirements of 3121 (b)(7)(F) of the Internal Revenue Service Code (IRS). PARS is a Defined Contribution Plan qualifying under 401(a) and 501 of the IRS code.
COMPENSATED ABSENCES
It is the City’s policy to record the cost of earned annual vacation, compensatory time, and fringe benefits. City employees accrue vacation and sick leave in varying amounts. Compensatory time is recorded as time earned by City employees for working overt ime. In the event of termination, employees are reimbursed for the total value of their accumulated vacation days and compensatory time. Sick leave benefits are not vested to the employee; however, the City has a sick leave incentive program, which will no rmally compensate employees at a rate of 50 percent for accrued sick leave between a floor and ceiling amount. The maximum sick hours subject to be paid varies per bargaining group and is paid to employees upon regular retirement or death. The City's accrued amounts for the sick leave incentive program are based on historical trends and other relevant data.
The City records compensated absences in the governmental funds as expenditures for the amount accrued during the year that would normally be liquidated with expendable, available financial resources. The remainder of the liability is recorded as long -term debt. The proprietary funds accrue compensated absences in the period earned and are recorded as long -term liabilities in the applicable fund.
OTHER POST-EMPLOYMENT BENEFITS
The post-retirement health benefits described on the previous page are subject to GASB Statement Number 75. An actuarial valuation of Other Post -Employment Benefits (OPEB) shows that the cost of these benefits at July 1, 2022, for current employees and retirees is $ 22,539,553. This is the amount necessary to fund the cost of health insurance for all current and retired employees from the time of retirement until death. The cost of OPEB de creased by $ 2.6 million in 20 21-22. Each year the City records annual OPEB expense, which is the amount of health insurance subsidy earned, during the current year, by current and former employees. The annual OPEB expense for 2022-23 was $1,747,411.
The OPEB expense for 202 3-24 has not been determined but is expected to be at least the same amount, if not more.
GASB 75 does not require the City to fund (set monies aside for) the $22,539,553 value of all benefits or the $1,747,411 annual cost. However, any amounts not set aside must be recorded as a liability (debt) in the annual ACFR. The cumulative liability will increase as the expense for each year is recorded. The City has designated a portion of the fund balance for this future liability.
City of Santa Maria 2024-26 Biennial Budget
Appendix J: Financial Status Comparison
J-1
APPENDIX J: FINANCIAL STATUS COMPARISON
ANALYSIS OF BUDGETS FROM OTHER CENTRAL COAST CITIES
2024-25
Santa Barbara Lompoc
San Luis
Obispo Santa Maria
General Fund
Revenues $ 195,893,061 $57,913,444 $ 119,405,109 $ 126,864,856 Appropriations 181,619,1361 57,907,829 114,754,112 139,848,861 All Operating Funds
Revenues 484,843,528 86,171,722 189,392,000 267,570,171 Appropriations 482,651,381 89,833,307 192,443,000 291,414,303 Revenue Per Capita 5,633 2,215 3,953 2,419
Revenue Analysis
Property Tax 51,030,000 11,841,839 22,651,995 26,498,432 Sales Tax 30,545,000 6,919,474 23,675,017 31,872,153
Sales/Use Tax Add-On * 33,400,000 8,079,138 30,897,602 26,544,951 Transient Occupancy Tax 28,700,000 2,300,00 10,918,080 4,273,426 Utility Users Tax** 7,800,000 0 5,881,630 0
Parking Revenue & Fines *** 14,692,970 0 10,362,924
0 TOTAL $ 166,167,970 $ 26,842,751 $ 104,387,248 $ 89,188,962 *Santa Barbara’s sales tax add -on revenues are entirely for capital expenses. **Santa Barbara’s Utility Users Tax reflects only the amount generated for the General Fund, which is half of the total UUT revenues collected. *** Enterprise Fund revenue, not General Fund revenue. Chart does not include cannabis tax revenues.
Population (as of January 1, 2024) 85,679 40,545 48,684 110,608 Square mileage (city limits) 21.09 11.68 13.6 23.2
Personnel
+
Full-time Employees 893 325 485 732
Employees Per 1,000 ratio 10.42 8.01 9.96 6.61
Sworn Fire Employees 91 29 49 80
Fire Fighters Per 1,000 Ratio 1.06 0.71 0.98 0.72
Sworn Police Officers 142 44 61 140
Officers Per 1,000 Ratio 1.65
1.08 1.25 1.26
+
The complement reflects authorized full -time employees in other cities with comparable services provided. Services not comparable are excluded from these calculations. It should be noted that the average employee per thousand residents (employee to popul ation) ratio for the above three municipalities (excluding Santa Maria) is 9.10 per thousand as compared to the 6. 61 per thousand in Santa Maria. ^Lompoc’s population excludes 3,065 inmates at the Federal prison complex, per the California Department of Finance.
City of Santa Maria 2024-26 Biennial Budget
Appendix J: Financial Status Comparison
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Appendix K: Highlights of Recent Accomplishments
K-1
APPENDIX K: HIGHLIGHTS OF RECENT ACCOMPLISHMENTS
The City successfully completed many projects in 2023 -24 to improve the community’s quality of life.
Seven of those larger initiatives are highlighted as follows:
SMART CITY, SAFE CITY
With the unanimous support of the City Council in June 2023, the City launched this transformative brand, with numerous videos and its own website (subsite of the City website). The basis for our Smart City, Safe City logo is an icon that represents the parts of this vision – technology and safety, represented by semi- circles or Cs in blue and gold (our City colors) – coming together to create a connected community. They are unified by the green S, representing our strong ties to agriculture and the environment. The City launched its Smart City, Safe City website loaded with videos, photos, and information sharing how people in Santa Maria can benefit from robust, easy -to-access services and a more connected living experience. One component is the Neighborhood Connect program, an online portal for residents to report problems and receive quick feedback from City departments.
RECREATION
The City purchased a 19 -acre property for its long -awaited sports complex at the corner of Depot Street and Battles Road. The land, currently used for agriculture, may see groundbreaking this year for the park. Amenities planned include four sports fields, basketball and futsal court, outdoor game area, playground, trails, snack bar, restrooms, and parking. The City continues to seek funding for this project.
The Recreation and Parks Depar tment also opened Machado Plaza, installed three Pickleball courts at Minami Park, reopened the Newlove Center and initiated after-school program, and put more than 2,500 youth through after-school programs.
SAFETY
Expanded use of the Automated License Plate Readers system and implemented new technology in body-worn cameras and online platforms for non -emergency crime reports, concealed carry weapons permits, and management of the Police Department’s training program.
EMPLOYEE DEVELOPMENT
Hundreds of employees were trained in Active Shooter response, Leader In Each of Us, START, Supervisors Training, and the City launched its GROW Initiative with University of California, Santa Barbara. The GROW Initiative dedicates a 15 -week cohort program with instructor- led sessions, and each cohort fulfills a capstone project that will benefit the organization.
TRANSPORTATION
Santa Maria Regional Transit unveiled its new fleet of electric buses on Earth Day 2024. Four new 35 - foot buses were debuted, with 10 more coming this year. The quiet vehicles have modern features to improve rider comfort such as more spacious interiors and personal electronic charging ports.
LIBRARY
The Public Library reopened for Sunday hours on July 1, 2023, thanks to voter -approved Measure U funds. The Library also expanded its popular Bookmobile route with more locations in neighborhoods.
COMMUNICATIONS
To improve accessibility and transparency, the City now offers live closed captioning (subtitles) in English or Spanish during its government meeting broadcasts. The dual language captioning gives viewers, including the hearing impaired, a valuable resource to watch and understand what is happening with their local government. The live closed captioning is for live and replays of City Council and Planning Commission meetings on Comcast Cable Channel 23 and streaming online at CityofSantaMaria.org/tv. V iewers using Channel 23 can use their remote control or TV settings to enable captions. English Captions are available on CC 1 and Spanish captions are available on CC 3 in the settings.
City of Santa Maria 2024-26 Biennial Budget
Appendix K: Highlights of Recent Accomplishments
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City of Santa Maria 2024-26 Biennial Budget
Appendix L: Status of City-wide 2023-24 Goals
L-1
APPENDIX L: STATUS OF CITY-WIDE 2023-24 GOALS
CURRENT FISCAL YEAR ACCOMPLISHMENTS
The 10 departments’ 2023- 24 Accomplishments projected through the fourth quarter (June 2024) are as follows:
Status Total UT PD FD PW RP LIB CD CAO CMO FIN
Initiated, not done 18 0 0 4 3 3 1 3 1 1 2
Completed 79 10 10 3 7 7 9 7 9 9 8
On hold, not started 3 0 0 3 0 0 0 0 0 0 0
Completed goals and objectives:
UTILITIES DEPARTMENT
• Awarded Project Management Contract for development and implementation of a Time Schedule Compliance Plan to revise operations and upgrade the wastewater treatment plant. • Completed the Proposition 218 process for water and sewer rates with approval of the rates by the City Council.
• Leased and installed a modular building to facilitate additional workstations for Water Resources staff at the Wastewater Treatment Plant.
• Initiated an organizational assessment in support of a comprehensive strategic workforce plan. • Negotiating a proposal for a Space Needs Assessment and Facilities Planning project to consolidate the Utilities Department operating divisions and administration functions at the Landfill site.
• Cleaned over 100 miles of sewer pipe and inspected over 10 miles of sewer pipe via video camera.
• Completed a fee study for disposal fees for the Santa Maria Regional Landfill with fees approved by the City Council.
• Completed Cell 1 Liner Extension Phase II California Environmental Quality Act (CEQA) study and plans, specifications and estimate to provide additional time to permit the Los Flores Integrated Waste Management Facility.
• Executed an agreement for services for operations and management of the recycling park at the Santa Maria Regional Landfill to meet State-mandated diversion requirements and to allow the community to continue to maximize recycling efforts. • Completed the design and environmental review for Public Works to bid a contract for the construction of a potable waterline to the Wastewater Treatment Plant.
POLICE DEPARTMENT (SOME GOALS/OBJECTIVES ARE COMBINED)
• (Increased outreach efforts throughout the community, with a focus on the youth through expansion/implementation of Explorer Post and School Resource Officer programs, growing social media campaigns to engage the public on safety and crime prevention, and including the Mixteco-speaking community.
• Further developed existing partnerships with local/State/Federal agencies to enhance services to reduce crimes in areas such as gun violence, child exploitation, human trafficking, and substance abuse.
• Expanded the Automated License Plate Readers system and implemented new technology such as body -worn cameras and online platforms for non -emergency crime reports, concealed carry weapons permits, and management of the Department’s training program, to increase transparency and enhance services to the community, in alignment with the Smart City, Safe City Vision.
• Focused efforts to promote recruitment, hiring, training, and the expansion of the Police Explorer Post program.
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Appendix L: Status of City-wide 2023-24 Goals
L-2
• Created policy, training, and implementation of acquired body- worn cameras, to meet best practice standards and enhance transparency within the community, and in alignment with the Smart City, Safe City vision.
• Implemented recommendations based on the completed audit of the Property/Evidence Division.
FIRE DEPARTMENT
• Developed and implemented a one -year training calendar to meet operational needs and standardize training for personnel.
• Conducted detailed condition and function assessment of all facilities and gave updates to the City Manager.
• Streamlined the Aircraft Rescue Fire Fighting (ARFF) certification process and train additional personnel to meet ARFF qualifications, to enhance succession planning.
PUBLIC WORKS DEPARTMENT
• Finalized Team Dynamics implementation for management of sidewalk pavement for pedestrians.
• Implemented the first phase of a multi-year Computerized Maintenance Management System to streamline facility operations and maintenance, to identify infrastructure lifespans, to align with the Smart City, Safe City vision.
• Developed a multi -year plan to grind and pave roads utilizing the Streets Division, prioritizing high wear and tear in residential areas.
• Identified the feasibility of improving the City’s overall Pavement Condition Index (PCI) by one point per year, aligned with budget and roadway usage, and bring the plan forward to the City Manager and to the City Council.
• Fully developed one - to five -year implementation plan for the Public Works Department assessment study, aligned with the budget process. This will identify efficiency and effectiveness improvements to make the Department more productive.
• Implemented a strategy to furnish in-house resources to service heavy equipment at the Santa Maria Regional Landfill, with the objective of reducing outside billings by up to 75 percent. • Began a feasibility study to assess the potential benefits of implementing a Bus Rapid Transit system along Broadway (Highway 135), and presented to CalTrans.
RECREATION AND PARKS DEPARTMENT
• Completed the comprehensive plan for the creation of a Citywide Landscape Maintenance District in the effort to find a supplemental funding source for the Park system and bring the feasibility report to the City Council. Present to the City Council a plan for feasibility and methodology for the creation of such a district.
• Expanded and created new meaningful outdoor programs and services for families to fulfill a City Council goal and in alignment with the Smart City, Safe City vision. Using a $500,000 grant from the State of California to engage more families in recreation programs in the out of doors, including excursions and camping experiences.
• Maintained and grew the partnerships with those community -based organizations whose services focus on the pillars of “Intervention” and “Prevention” as stated in the Mayor’s Task Force on Youth Safety report. Organize a biannual summit of these groups. • Made progress on capital projects including, relandscaping the Civic Center facing Broadway; phase one and two of the Veterans’ Memorial Park project; phase one of the Smith/Enos House and Japanese Community Center projects; Battles Road Multi- purpose trai l beautification project and Jones Street Intermodal Trail Project.
• Brought to the Recreation and Parks Commission a proposed City Urban Forest Master Plan and presented to the City Council for consideration.
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Appendix L: Status of City-wide 2023-24 Goals
L-3
• Completed an Organizational Assessment for the Department’s future needs in management, supervision, staffing and facilities, develop a multi- year implementation plan, and include professional development and training.
• To fulfill the City Council’s priorities for public safety, utilized the City Ranger program to promote continued safety in and around public spaces, update policy and procedure manual using the Lexipol system, encourage environmental sustainability, creat e opportunities for social interaction.
LIBRARY DEPARTMENT
• Enhanced Library program opportunities for children and families by partnering with Children’s Resource and Referral and other community organizations to establish an Early Learning Library Hub and Library programs in alternate community physical locations around the community. • Supported the Smart City, Safe City vision by expanding Bookmobile services in the City. • Continued working with an architectural firm to complete assessment of Main Library layout and begin planning phase for redesign spaces, to meet anticipated patron needs and enhance the Library experience.
• Installed updated security camera equipment and software aligning with the Smart City Safe City vision.
• Created an internal professional development series for library personnel to increase technical proficiency and industry knowledge, leading to higher staff engagement and job satisfaction. (Observation: This takes a nearly annual goal to the next level). • Implemented two part-time dedicated Library Security Officers, through Measure U funding, to provide continued safety for Public Library users and staff. • Evaluated current trends for collection development and circulation to adjust purchasing allocations, maximizing available funding, and increasing operational efficiency. • Prepared an analysis of Black Gold services to determine the value versus cost of membership and ensure proper expenditure of City funds.
COMMUNITY DEVELOPMENT DEPARTMENT
• Continued the comprehensive update to the City’s General Plan for target year 2045.
Completed the Alternatives Phase with the City Council’s direction in December 2023. • Achieved State certification of the City’s General Plan Housing Element by State Housing and Community Development (HCD).
• Continue implementation of the Downtown Specific Plan, by working with property owners and developers to encourage construction of new housing, retail and employment uses and amenities.
• Coordinated with downtown property owners, including Santa Maria Town Center, on property improvement efforts. To supplement existing City services, began the multi- year process of creating a Downtown Business Improvement District, in collaboration with th e Chamber of Commerce, to identify its geographic scope and establish a funding mechanism for downtown enhancements including, but not limited to, landscaping, lighting, signage, parking and security.
• Continued coordination with Santa Barbara County Animal Services to ensure responsive customer service, quality animal care, and meaningful community engagement. Met quarterly with the Animal Services director to discuss performance measures and ongoing improvement efforts.
• Updated the City’s permitting software, Trak -It, to the new Central Square Community Development software. Transitioned from paper plan review to digital plan review and online submittals.
• Developed standard operating procedures for essential Code Enforcement officer responsibilities and duties. Draft program and position manuals to promote training and development.
City of Santa Maria 2024-26 Biennial Budget
Appendix L: Status of City-wide 2023-24 Goals
L-4
CITY ATTORNEY’S OFFICE
• Assisted the Community Development Department with developer negotiations, toward achieving the revitalization of the City’s downtown.
• Collaborated with the City Manager’s Office regarding increased efficiencies in claims handling and prelitigation resolutions.
• Prepared and presented an updated Contract Processes policy and procedures to the City Manager’s Office, to provide contractual transparency and consistency. • Prepared and presented ordinances to the City Council making technical amendments to the Municipal Code to update for changes in State law, new cases, and to clarify existing ordinances as required. This effort included deleting outdated code provisions t o reduce the regulatory burden on the City’s businesses and residents. • Continued to actively monitor and participate in tort and civil litigation to reduce the burden on the taxpayers of frivolous and non-meritorious cases. • Represented the Police Department at Gun Violence Restraining Order hearings to reduce the occurrence of gun violence within the City.
• Obtained Workplace Violence Restraining Orders as needed to protect City employees while at work and ensure a safe working environment free of outside violence. • Collaborated with the Community Development Department on the comprehensive update to the General Plan, the community’s vision for the growth and development. • Prepared and released updated contractual templates and assist departments in implementation.
CITY MANAGER’S OFFICE
• Developed a budget that addresses the City's long-term financial obligations and priorities. • Advance Citywide communications by implementing the strategic communications plan enhancing internal and external communication, transition to upgraded audio -visual equipment in the Council Chambers and the control room, introduce on -demand Spanish video captioning and translation (subtitles), and provided extra functionality and features via the redesigned City website.
• Implemented projects funded by one -time American Rescue Plan Act funding, with the objectives of reimbursing costs incurred and revenue lost as a result of the pandemic, investing in projects that can be completed within the required timeline, and increase ongoing revenue or reduce ongoing costs, and strengthen the City’s financial position. • Commenced marketing the Smart City, Safe City campaign and associated Neighborhood Connect program, to raise customer awareness of various technologies and programs prioritized by the City Council, to enhance customer service and to further the City’s Smart City Safe City vision.
• Completed an assessment of Risk Management to identify resourcing required to have that function remain cost effective and operationally efficient in a rapidly changing risk environment.
• Supported the Economic Development partnership with the Chamber by employing structured project management approach to Downtown redevelopment and a coalition of support to the regional effort of expanding commercial activity at Vandenberg Space Force Base. • Streamlined and automated public meeting preparations by leading a collaborative process with departments to clearly identify and define efficient workflows and implement a manual. • Reviewed and updated personnel policies and procedures, Municipal codes, City Administrative Memos (“CAMs”) and create an employee handbook. Established a formalized approval and plan for workforce and succession planning.
FINANCE DEPARTMENT
• Finalized selection of the new Enterprise Resource Planning (ERP) system and awarded a contract to the selected vendor in the multi- year process to update this backbone software, and in alignment with Smart City, Safe City.
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Appendix L: Status of City-wide 2023-24 Goals
L-5
• In preparation for the ERP, reviewed City -wide payroll processes, timekeeping and payroll system setup.
• Developer ERP implementation plan within the Finance Department including identification of additional staffing, project location and training needs. • In preparation for the ERP, evaluated the Chart of Accounts, vendors list, and other system data. Began documenting workflows needed for the project mapping. • Utilizing the utility billing website and print marketing, provided outreach to customer to increase recurring payment of utility billing customers by an additional five percent over 2022 - 23 levels.
• Identified efficiencies in utility billing that can be leveraged by ERP implementation, and began clean up of historical data in preparation of mapping to the new system. • Implemented the update to Tyler Cashiering and ensured that the credit card functionality is fully compatible with cashiering software.
• Researched the feasibility of going paperless for Business Licensing Applications and Renewal Notices, including digital signatures.