COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chuen Wu, Assistant City Manager
DATE: March 18, 2025
SUBJECT: Measure U Annual Report for the Period Ending June 30, 202 4, as Submitted by the Measure U Citizens’ Oversight Committee
Description:
The City Council will receive a presentation from City Staff and the Vice-Chair of the Measure U Citizens’ Oversight Committee on the Measure U Annual Report.
RECOMMENDATIONS:
1. Receive a presentation from City staff and Vice -Chair of the Measure U Citizens’ Oversight Committee on the Measure U Annual Report for the period ending June 30, 2024; and
2. Receive and file the Measure U Citizens’ Oversight Committee 202 3-24 Annual Report.
BACKGROUND:
Measure U is a local transaction and use tax within the City of Santa Maria imposed within the incorporated City Limits and applies to gross receipts from any retailers from the sale of tangible property within City Limits. Originally approved and enacted as a one-quarter- cent general transacti on and use tax by City voters in June 2012 , Measure U was extended and enhanced to a one-cent rate to support essential City services in November 2018.
On September 4, 2012, the City Council adopted a Resolution establishing the Measure U Citizens’ Oversight Committee (Committee). The Committee consists of five residents who ensure oversight of the revenue generated by and expenses made in relationship to Measure U are consistent with the City Council’s intended use for said tax proceeds. The Committee is not charged with decision -making responsibilities on spending priorities, funding decisions, or financing plans. Rather, Committee Member duties consist of reviewing the annual independent financial audit on the Measure U generated revenue and associated expenses during the previous fiscal year (202 3-2024), as well as reviewing any other relevant financial reports necessary to advise the City Council of its findings.
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 obje ctives are to make Santa Maria safer, with more services for 2 youth, and to improve the quality of life. To meet these goals and objective s, 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 als o indicated a desire to create a Measure U r eserve 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.
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, was increased to $12,257,230.
DISCUSSION:
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).
For 2023-24, approximately $ 26,886,354 in tax 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.
On the expenditure side, on June 20, 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. Including the budget carryover, 202 3-24 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, including:
Police: restoration of nine police officer positions, employee support services for sworn and professional staff, access control security improvements to the police facility, and procurement of crime lab vehicle moving equipment. Fire: full funding of nine fire fighter positions (instead of 87 percent), a department safety officer, a training captain to be the front -line operational coordinator for all training, security cameras, design and preliminary engineering of a new Fire Administration building, and a vehicle for a Fire Prevention inspector. Recreation and Parks: Axon body cameras for City Rangers. Library: two part-time Library Security Officer positions. Community Development: one Code Enforcement officer.
City Manager’s Office: restoring full -time status for the Public, Education, and Government (PEG) Production Manager.
3 Attached are the unaudited financial statements for the Measure U Fund which presents the budgeted versus actual revenue and expenditures. Accordingly, the budgeted expenditures comply with the City Council’s direction.
Attachments:
A. Annual Report City of Santa Maria Measure U (unaudited) for the Period Ending June 30, 2024 B. Measure U (Unaudited) Financial Statements for the Period Ending June 30, 2024 C. Measure U Audited Financial Statements for the Period Ending June 30, 202 3