Attachment C
PROPOSED BUDGET AMENDMENTS:
CITY MANAGER’S OFFICE, FINANCE
Increase appropriations in the General Fund from Unfunded Liability Pension Reserves by $3,188,076 and decrease appropriation from the Local Economic Augmentation Fund by $3,188,076.
To alleviate the structural budget deficit, staff recommend drawing some funds set aside as reserve for pensions. Per the City Council policy established in 2018, the City has designated a total of $13.2 million in reserves for unfunded liability pension payments. The City’s pension payments are projected to escalate through approximately FY 2030 -31. Payments toward the unfunded liability for pensions are contributing to the projected o ngoing budget deficit. Staff recommend commencing utilizing the reserves to balance the budget. The proposed amendment would draw on $3,188,076 from the unfunded pensions reserve account instead of the Local Economic Augmentation fund.
RECREATION & PARKS/GENERAL FUND & LANDSCAPE DISTRICT FUNDS
Reallocate two (2) of the Recreation & Parks Department’s full-time Maintenance Worker I positions from the General Fund to the Landscape District Funds in the amount of $200,000.
Property owners located within one of the four master Landscape Districts pay a special assessment for lighting and landscaping in their neighborhoods to be adequately maintained and renovated as needed. According to an analysis prepared by the Recreation & Parks Department, anticipated revenues will increase by approximately $3.4 million over the next four years due to new approved developments going online, potentially new plan check fees, and consumer price index (CPI) increases.
Funding is available to reallocate two current General Fund position allocations to the Special District Fund. Approval of this request will allow the Department to serve the special landscaping needs of the community at a more appropriate level, as well as reduce the financial burden carried by the General Fund.
PUBLIC UTILITIES/WATER FUND
Increase appropriations by $30,200 for the purchase of the Backflow module, an add-on offered by the new Utility Billing Software, SpryPoint.
The Utilities Department requests an additional appropriation in the amount of $30,200 for the purchase of the Backflow module, an add -on offered by the new Utility Billing Software, SpryPoint. Staff have confirmed that this module was not included in the original SpryPoint purchase, which had previously been approved by the Council. The Finance Department has recommended submitting this request in the second quarter.
PUBLIC WORKS/GROWTH MITIGATION FUND
Increase appropriations by $150,000 for the AB 1600 Growth Mitigation Program Update.
The Public Works Department is requesting an increase in the appropriation in the amount of $150,000 to pay for the Growth Mitigation Program Update project .
Increase appropriations by $125,000 for the purchase of Lot 20 of Tract No. 6008 in the City of Santa Maria for the Police Department.
On December 17, 2024, Resolution No. 2024 -150 authorized the purchase of Lot 20 of Tract No. 6008 in the City of Santa Maria for the Police Department in the amount of $125,000. The funds for this acquisition have been identified in the AB 1600 Growth Mitigation Program as a strategic opportunity to support the future growth of the Police Department. The Public Works Department is requesting an increase in appropriation of $125,000 in the Growth Mitigation Fund to fund the purchase agreement.
PUBLIC WORKS/GROWTH MITIGATION FUND & DEVELOPER / GRANT STREET
PROJECTS FUND
Increase appropriations by $1,995,000 for Drainage Improvement Projects listed in the Capital Improvements Plan.
The current adopted Growth Mitigation Plan lists the Drainage Improvement Projects in the Capital Improvement Plan. Public Works requested funding for Drainage Improvement Projects through the FY 2024 -26 budget process, but the funding was denied because a dditional grant funding information was needed. Grant funding appropriation was confirmed in July 2024, stating $959,752 has been designated to the City of Santa Maria for stormwater drainage projects in the community. The Public Works Department is reques ting an increase in appropriations of $1,035,000 in the Growth Mitigation Fund and $960,000 in the Developer / Grant Street Projects Fund for these projects.
PUBLIC WORKS/DEVELOPER / GRANT STREET PROJECTS FUND
Increase appropriations by $2,469,226 for Sewer Project.
In July 2024, the City was awarded REAP 2.0 funds. On November 19, 2024, Resolution No. 2024-150 authorized the Public Works Department to enter into an agreement between the City of Santa Maria and Santa Barbara County Association of Governments awarding the City project funds to increase sewer capacity and construct multimodal improvements in the downtown area.
This project was already identified to be funded by the American Rescue Plan Act (ARPA); however, it was determined the ARPA funds e armarked for the sewer project could be better used for other projects. The Public Works Department is requesting an increase in appropriations of $2,469,226 in the Developer / Grant Street Projects Fund for the REAP 2.0 Sewer Project.
PUBLIC WORKS/TRANSIT FUND
Increase appropriations by $764,993 for Purchase of Five Buses.
The Public Works Department is requesting an increase in appropriations for Transit to purchase an additional five buses. The appropriation is supported by awarded Federal and State funding.
Increase appropriations by $100,785 for Transit Operations.
The Public Works Department is requesting an increase in appropriations for Transit operations in the amount of $100,785. On March 16, 2021, and December 7, 2021, the City Council approved Santa Maria Regional Transit (SMRT) route adjustments to the Short-Range Transit Plan (Resolution Nos. 2021-125 and 2021-137). SMRT has unveiled a Micro Transit service to aid in the service increases as of September 19, 2024.