CITY OF SANTA MARIA
FY 2024-25
Third Quarter Financial Report
JUNE 3, 2025
Recommendations
1. Receive and file the Financial Report for the Third
Quarter ending March 31,2025, and
2. Adopt a Resolution approving Third Quarter
Amendments to the FY 2024-25 Budget for personnel
and operational changes.
1. Economic Outlook
2. General Fund & Measure U
Revenue / Expenditure Trends
4. Enterprise Funds Revenue /
Expenditure Trends
Topics for Review
Economic Outlook
US Economy shrank 0.3% in
the first quarter of 2025,
compared to 2.4% growth in
fourth quarter of 2024.
US Inflation was at 2.4% in
March but home prices continue
to climb.
US Unemployment remained
low at 4.2%; however, Santa
Maria’s jobless rate is 8.1%.
General Fund and Measure U
General Fund Budget vs Actual
GENERAL FUND
(in thousands)
Adopted
Budget
Current
Budget
2024-25
Actual
Percent of
Current Budget
Revenues & Transfers In
Sales Tax $ 31,872 $ 31,872 $ 23,211 72.8%
Property Tax 26,498 26,498 14,694 55.5%
Hotel/Bed Tax 4,274 4,274 2,517 58.9%
Licenses, Permits & Fees 3,196 3,196 4,499 140.8%
All Other Revenues 34,309 32,863 25,494 77.6%
Total Revenues & Transfers In $ 100,149 $ 98,703 $ 70,415 71.3% Expenses & Transfers Out
Staffing $ 73,048 $ 73,028 $ 48,198 66.0%
Contracts & Services 10,184 12,353 7,311 59.2%
Materials & Supplies 4,257 4,463 3,620 81.1%
Maintenance & Operations 10,835 10,860 7,990 73.6%
Capital Outlay 1,800 2,501 1,979 79.1%
Debt Service 267 267 267 100.0%
Transfers 8,328 8,538 7,085 83.0%
Total Expenses & Transfers Out $ 108,719 $ 112,010 $ 76,450 68.3%
General Fund Actual by Type
Sales Tax by Major Business Group
Sales Tax Receipts by Month
• Staffing: Under budget by 9.0%, or $6.57M, due to
vacancies mostly experienced in the Police and Fire
departments, as well as overtime savings for the Fire
Department, mostly due to the over hire of Firefighter
positions in anticipation of staffing new Engine 6.
• Contracts & Services: Under budget by 15.8%, or $1.95M, due to timing of the General Plan Update project and the payment for contractual services with Santa Barbara County for Animal Control Services.
Expenditure Variances
• Materials & Supplies: Over budget by 6.1 percent, or $272 thousand, due to a significant increase in the amount of watering required of the Recreation & Parks Department
necessitated by Senate Bill (SB) 1383, which requires the spreading of a pre-defined amount of compost each year.
Once placed at appropriate depths the compost needs to be watered regularly until it has been locked into the ground. As of December 31, irrigation has been shut off at all parks, except those areas with new vegetation that will require ongoing irrigation.
• Debt Service: Over budget by 25.0 percent, or $67
thousand, due to the timing of debt service payments.
Expenditure Variances
• Transfers Out: Over budget by 8.0 percent, or $682
thousand, due to timing of the transfers from the General Fund to other funds as approved in the adopted budget. The General Fund subsidy of the Library Fund is anticipated to be under budget due to savings from vacant positions.
Expenditure Variances
Expenditure Variances
MEASURE U FUND
(in thousands)
Adopted
Budget
Current
Budget
2024-25
Actual
Percent of
Current Budget
Revenue $ 26,716 $ 26,716 $ 19,723 73.8%
Expenses
Community Development $ 824 $ 824 616 74.7%
City ’ Office 1,435 1,435 753 52.4%
Finance 3 3 - 4.4%
Library 1,015 1,015 724 71.4%
Recreation & Parks 3,071 3,489 2,057 58.9%
Fire 11,946 17,939 8,404 46.8%
Police 12,836 12,870 9,555 74.2%
Total Expenses $ 31,130 $ 37,575 $ 22,109 58.8%
Measure U Budget vs Actual
Through March, Measure U
expended 86.9 percent on
Public Safety, 5.5 percent on
Youth Services, and 7.6 percent
on Quality of Life.
Enterprise Funds
• Revenues increased 1.5%, or $675K,
compared to the prior year due to
higher sewer service charges (+7.8%,
or $3.1M) offset by lower revenues
generated through sales of metered
water (-62.3%, or $2.9 million).
• Water and Wastewater operational
expenses are under budget by 49.0%
due to personnel savings from vacant
positions and timing of maintenance
and contractual agreements.
Water & Wastewater
• Solid Waste revenues were $11.5
million less than expenditures.
• Operational costs are under budget by
9.5 percent, or $3.4 million due to
personnel savings from vacant
positions and timing of maintenance
and contractual agreements.
Solid Waste
• Fare revenue is $478 thousand, which
is about $31 thousand more than last
year.
• The farebox ratio is 8.9 percent based
on fares received and operating
expenses recorded to date.
Public Transit
Budget Amendments
Budget Amendment
PUBLIC WORKS / GENERAL FUND
Increase appropriations by $20,000 for Homeless Safety/Quality of Life Project.
The Public Works Department is requesting an increase in appropriations of $20,000 in the General Fund for the Homeless Safety/Quality of Life Project.
The initial appropriation for unhoused cleanup was $159,129, which was funded by the American Rescue Plan Act (ARPA) and was nearly exhausted as of May. With two months left in the fiscal year, additional funding will be required to continue the clean-up and disposal of materials and refuse from the unhoused community.
Budget Amendment
PUBLIC WORKS / FLEET SERVICES FUND
Increase appropriations by $200,000 for the repairs and maintenance of a D8 Dozer and a D7 Dozer.
The Public Works Department is requesting an increase in appropriations of $200,000 in the Non-Agreement Vehicle Repairs account in the Fleet Services Fund to fund the repairs and maintenance of a D8 Dozer (#6432-24) in the amount of $110,000 and a D7 Dozer (#6433-21) in the amount of $90,000.
This amendment is requested due to a change in cost allocation which requires the Fleet Services Fund to pay for the repairs and maintenance rather than direct charging the expenses to the Utilities Department. Should the amendment not be approved, the Utilities Department’s ability to perform critical operations at the landfill will be adversely impacted. As a result, the City would be required to rent two dozers to maintain operations, the cost of which would significantly exceed the proposed maintenance expenditures.
Budget Amendment
PUBLIC WORKS / GROWTH MITIGATION FUND
Increase appropriations by $976,728 to finalize the Reimbursement Agreement # K-PW 2025-007 to Betteravia Park, LLC.
The Public Works Department is requesting an increase in appropriations of $976,728 to finalize the Reimbursement Agreement # K-PW 2025-007 to Betteravia Park, LLC. Funding for this appropriation comes from Traffic Mitigation Fee revenue deposited in the Growth Mitigation Fund. The Reimbursement Agreement states the City shall reimburse the Developer the actual direct costs of constructing the Traffic Facilities set forth in the agreement and is backed by Council Resolution No. 2025-39.
Budget Amendment
PUBLIC WORKS / TRANSIT FUND
Increase appropriations by $2,101,905 for Purchase of Five Buses.
The Public Works Department is requesting an increase in appropriations for Transit to purchase five buses. The appropriation is supported by awarded Federal and State funding.
Budget Amendment
RECREATION AND PARKS / QUIMBY ACT SUBDIVISION-IN-LIEU FUND
AND GROWTH MITIGATION FUND
Reduce appropriations by $1,280,000 in the Quimby Act Subdivision-In- Lieu Fund and increase appropriations by $1,280,000 in the Growth Mitigation Fund for the Sports Complex Project.
On November 19, 2024, the Public Works Department presented to the City Council a Resolution awarding a bid to Specialty Construction Inc for the construction of the Sports Complex Project, Bid No. 2024-11. Funding sources identified for the project and designated through the adopted Resolution included $1,280,000 from the Quimby Act Subdivision-In-Lieu Fund. Upon recent review of the fiscal health of that fund it has been determined that there is insufficient fund balance necessary to support the project. The Recreation and Parks Department is requesting a decrease in appropriations in the amount of $1,280,000 in the Quimby Act Subdivision-In-Lieu Fund and an increase in appropriations in the amount of $1,280,000 in the Growth Mitigation Fund to pay for the Sports Complex Project.
Budget Amendment
UTILITIES / WATER FUND
Increase allocation of one (1) Full-Time Lead Customer Service Technician position.
The Utilities Department is requesting the addition of 1.00 FTE Lead Customer Service Technician position in the Water Resources Division. The new position was approved in FY 2023-24 but was not funded at the time pending the development of a job specification and establishment of a salary range. Since then, the salary range has been set, the job classification created, and the meet-and confer process concluded. The Utilities Department is ready to fill the position and approval of this request completes implementation of the previously authorized position and ensures the division has the staffing needed to support essential customer service operations. There is no fiscal impact of this addition throughout the remainder of FY 2024-25 as appropriations in the Water Fund are sufficient. The annualized fiscal impact beginning in FY 2025-26 is estimated at $115,000.
Budget Amendment
UTILITIES / WATER FUND, WASTEWATER FUND, SOLID WASTE
COLLECTION FUND AND SOLID WASTE DISPOSAL FUND
Increase appropriations by $12,800 in the Water Fund, $21,710 in the Wastewater Fund, $40,700 in the Solid Waste Collection Fund, and $21,710 in the Solid Waste Disposal Fund for the cost associated with configuring integrations between Workday and the Utilities Department’s Portalogic and Paradigm applications, between SpryPoint’s SpryIDM model and the Utilities Department’s Sensus meter reading application, between SpryPoint and Utilities Department’s Routeware application, between SpryPoint and the City’s Paymentus application, and for the addition of Single Sign-On (SSO) for SpryPoint.
The Utilities Department is requesting additional appropriation in the amount of $96,920 for the cost associated with configuring integrations between Workday and the Utilities Department’s Portalogic and Paradigm applications, between SpryPoint’s SpryIDM model and the Utilities Department’s Sensus meter reading application, between SpryPoint and Utilties Department’s Routeware application, between SpryPoint and the City’s Paymentus application, and the cost of adding Single Sign-On for SpryPoint.
Recommendations
1. Receive and file the Financial Report for the Third
Quarter ending March 31, 2025, and
2. Adopt a Resolution approving Third Quarter
Amendments to the FY 2024-25 Budget for personnel
and operational changes.