Attachment A
February 2025
Measure U
Citizens’ Oversight Committee
2023-24 Annual Report
Committee Members
Trent Benedetti, Chair
Jack Owen, Jr., Vice Chair
Jennifer Camacho
John Childers, Jr.
Greggory Follett
Dear Santa Maria City Council,
The Measure U Citizens’ Oversight Committee (Committee) is pleased to submit to the City Council this annual report on the revenues received and expenditures made from the Measure U tax proceeds for the fiscal year ending June 30, 202 4. The Committee is hereby submitting this report to the City Council in compliance with its assigned duty.
On January 27, 2025, the Committee reviewed the draft (unaudited) Measure U financial statements prepared by City staff and pending completion of the annual independent financial audit performed by CliftonLarsonAllen LLP ( the City’s Auditors). The Committee received the Measure U unaudited financial statements on January 27, 2025.
As the City Council is aware, the one quarter-cent transactions and use tax was a nine-year tax, due to sunset on December 31, 2021. However, on November 6, 2018, voters approved a three -quarter cent enhancement to Measure U and removed the sunset date. The new one-cent transactions and use tax went into effect April 1, 2019. To account for this funding (both revenues and expenses), staff established a separate fund to track Measure U tax proceeds and account for all Measure U -related expenditures with any unspent tax proceeds remaining in the Measure U Fund. However, it should be noted that the Measure U Fund is a part of the General Fund and a subset thereof.
On March 5, 2019, the City Council set goals and objectives regarding the use of Measure U proceeds.
The goals are to first maintain services, and second, to make service enhancements. The objectives are to make Santa Maria safer, with more services for youth, and to improve the quality of life. To meet these goals and objectives, the City Council authorized Measure U proceeds, beginning in fiscal year 2019-20, to be used 90 percent for Public Safety, 5 percent for youth services, and 5 percent for quality of life. The City Council also indicated a desire to create a Measure U reserve to help ensure these vital services can be sustained during a temporary or cyclical reduction of revenue. The City Council set an eventual goal of a 20 percent reserve.
Fiscal Year 2023-24 Year-End Measure U findings:
Staff have worked with Hinderliter, de Llamas & Associates, the City’s sales tax consultants, to estimate the annual tax proceed revenues. For 2023-24, approximately $26,886,354 in revenues were estimated and actual receipts came in at $ 25,947,108 (or 3.5 percent under budget). The $939 thousand negative variance in Measure U revenues is attributable to lower spending on autos and transportation and general consumer goods.
Attachment A
On the expenditure side, on June 2 0, 202 3, the City Council approved 202 3-24 total Measure U appropriations of $36,089,629.
The Library, Recreation and Parks, Fire, and Police departments’ remaining 2022 -23 appropriations totaling $4,528,961 were carried over to 2023-24.
The Library requested a capital appropriation carryover of $44,215 for the Library Building Improvements project.
Recreation and Parks requested capital appropriation carryovers of $68,118 to purchase Park Ranger vehicles and associated equipment, $22,797 to purchase a vehicle for Security Guards, and $11,193 to complete new equipment purchases for the Newlove Center.
The Fire Department requested an operating appropriation carryover of $22,029 to purchase personal protective equipment and hose, $20,531 for a Professional Services Agreement for Fire Department Master Plan as well as capital appropriation carryovers of $96,281 for building maintenance, $1,552,608 for the Training Center project, $179,939 for radios, and $1,530,217 to purchase vehicles, and $158,930 for parking lot maintenance at Fire Station 1.
The Police Department requested capital appropriation carryover s of $ 13,049 to complete building maintenance projects in process, $ 94,320 to complete the purchase of a vehicle in process, and $714,734 for the Body Camera, Taser, Vehicle Camera project.
Including the budget carryover, 2023-24 appropriations increased to $40,618,590.
The City Council authorized Measure U 2023 -24 revenue to maintain a variety of municipal services and programs performed by 183 full -time and part -time positions. As part of the 2023 -24 Mid-Cycle Budget process, the City Council authorized the following additional expenditures from Measure U from current year revenues as well as utilizing $9.2 million from reserves.
Police Department:
Nine Police Officer positions were restored; however, funding was only restored for two positions at the time of budget adoption. Changes in personnel and recalculation of personnel costs resulted in an increase. Funding of $13,500 provided for employee su pport services for all sworn and professional staff in the Department; $25,000 provided for access control security improvements to the Police Department facility; and, $30,500 allowed for the procurement of Crime Lab vehicle moving equipment for evidentiary vehicle processing.
Fire Department:
Prior to FY 2023-24, the funding for nine Fire Fighter positions was allocated 13% to the General Fund and 87% to Measure U. Starting in FY 2023-24, Measure U started covering 100% of those Fire Fighter positions. The allocation of one Full -Time Equivalent (1.00 FTE) Business Program Leader position serving as the Department’s Safety Officer was transferred from the City Manager’s Office to the Fire Department, one (1.00 FTE) Training Captain was added to work clos ely with the Civilian Training Specialist (approved in FY 2022-23) and under the direction of the Deputy Fire Chief, to be the front - line operational coordinator for all training within the Department. Six Fire Suppression personnel (two Fire Captains, two Fire Engineers, and two Fire Fighters) wer e authorized but unfunded pending the need to fill the positions. Funding of $200,000 was provided for security cameras for Fire Facilities, Attachment A
$245,000 for the design and preliminary engineering of a new Fire Administration Building, and $45,000 to acquire a vehicle for a Fire Prevention Inspector.
Recreation and Parks:
Funding of $168,000 allowed for the purchase of Axon OSP packages for the City Rangers, which contain a body camera and taser to assist with safety, recording of contacts with the public, and all other actions conducted by the Rangers.
Library:
The addition of two part -time Library Security Officer positions provided adequate safety for Public Library users and staff.
Community Development/Code Enforcement:
The addition of one Code Enforcement Officer supported the continued heavy volume of service requests from community residents including, but not limited to, neighborhood blight, unpermitted construction, graffiti, shopping cart violations, and weed abatement.
City Manager’s Office:
The Public, Education, and Government (PEG) Production Manager position was restored to full -time with full funding in Measure U. Funding of $35,000 provided for operational expenses for the PEG division.
Measure U Audit Review
On January 27, 2025, the Committee convened to review the Measure U draft and unaudited financial statements. Committee members reviewed the report and were able to ask questions of staff regarding Measure U -related revenue and expenses. After reviewing the relevant financial information and deliberating on the actions taken by staff, the Committee determined that the expenditures made with Measure U tax proceeds were in compliance with the City Council’s intended purpose for sai d tax proceeds. Approximately 89 percent of Measure U expenditures have been spent on Public Safety, 5.6 percent on Youth Services, and 5.4 percent on Quality of Life. While the budgetary allocations are set at precise percentages per the Council policy, some fluctuations occur in actual expenditures due to timing of projects. Audited financial statements will be provided to the Committee upon completion of the audit.
Attachment A
Committee Issues/Questions/Comments
At the Committee Meeting of January 27 , 202 5, the Committee received and review ed unaudited financial statements ending June 30, 2024, and received a report on expenditures in alignment with the Council policy that 90 percent of Measure U will be spent on public safety, 5 percent on youth, and 5 percent on quality of life. The Committee inquired about the timing of Capital Improvement Projects and equipment purchases. Fire Chief Dandridge explained the process for purchasing large equipment such as a new Fire engine. The process may take several years from the time the project is funded until the equipment is received by the City and the actual payment is made.
The Committee voted unanimously to move forward with preparation of the annual report for City Council review subject to future review and ratification of the audited financial statements. No material changes in the financials are expected because of the audit. The presented annual report informs the Council of the actual revenue and expenditure paid for by Measure U.
The Committee noted that the Fiscal Year 2022 -23 appropriations marked 10 years of Measure U contributing to the Public Safety, Youth, and Quality of Life services provided by the City to our community.
Fiscal Results
The Measure U Fund began the year with a fund balance of $17 ,105,068, and because revenues ($25,947,109) were lower than expenditures ($30,794,947) by $4,847,838, the ending fund balance as of June 30, 2024, decreased to $12,257,230.
Sincerely,
TRENT BENEDETTI
Chair, Measure U Citizens’ Oversight Committee