CITY OF SANTA MARIA
FY 2024-25
Fourth Quarter Financial Report
November 18, 2025
Recommendations
Receive and file the Financial Report for the Fourth
Quarter ending June 30,2025.
1. Economic Outlook
2. General Fund & Measure U
Revenue / Expenditure Trends
4. Enterprise Funds Revenue /
Expenditure Trends
Topics for Review
Economic Outlook
Unemployment
Rate
(June 2025)
The rate in Santa
Barbara County was
4.1 percent in June.
Santa Maria was at 5.3
percent, down from
8.1 percent in March.
Inflation
(June 2025)
Inflation was 2.7 percent
in June, up 0.3 percent
from May. The full
impact of tariffs was yet
to come, according to
economists.
US Economy grew at an annual
rate of 3% in the fourth quarter.
Inflation was 2.7% in June, up
0.3% from May. Retail sales
increased 0.6% in June after an
unrevised 0.9% drop in May.
Unemployment remained
relatively low at 4.1% in June;
however, Santa Maria’s jobless
rate is 5.3%.
Median Home
Sales Price
(June 2025)
The median sales price
in March 2025 in Santa
Maria was $628,500,
down from $629,100, or
0.1 percent, from 2024.
General Fund and Measure U
General Fund Budget vs Actual
GENERAL FUND
(in thousands)
Adopted
Budget
Amended
Budget
Year-End
Estimates
2024-25
Actual
Percent of
Current Budget
Beginning Fund Balance $ 8,570 $ 10,072 $ 10,072 $ 10,072 Cancelled Reserves
Unfunded Pensions $ - $ 3,188 - $ - 0.0%
LEAF - 5,148 419 - 0.0%
Total Cancelled Reserves $ 8,336 $ 8,336 $ 419 $ - 0.0% Revenues & Transfers In
Sales Tax $ 31,872 $ 31,872 $ 30,621 $ 30,763 96.5%
Property Tax 26,498 26,498 27,699 27,996 105.7%
Hotel/Bed Tax 4,274 4,274 4,023 3,838 89.8%
Licenses, Permits & Fees 3,196 3,196 4,593 5,536 173.2% All Other Revenues 25,973 27,779 27,916 30,287 109.0%
Total Revenues & Transfers In $ 81,813 $ 93,619 $ 94,852 $ 98,420 105.1% Total Resources $ 108,719 $ 112,027 $ 105,343 $ 108,492 Expenses & Transfers Out
Staffing $ 73,048 $ 72,929 $ 67,077 $ 67,109 92.0%
Contracts & Services 10,184 12,522 12,052 11,423 91.2%
Materials & Supplies 4,257 4,478 5,005 4,733 105.7%
Maintenance & Operations 10,835 10,859 10,843 10,751 99.0% Capital Outlay 1,800 2,501 2,487 2,490 99.6%
Debt Service 267 267 267 267 100.0%
Transfers 8,328 8,538 7,612 6,404 75.0%
Total Expenses & Transfers Out $ 108,719 $ 112,094 $ 105,343 $ 103,177 92.0% (Use)/Provision of Fund Balance $ (16,906) $ (18,475) $ (10,491) $ (4,757) $88.853
$9.567
$96.773
$6.404
$83.288
$9.917
$87.187
$4.757
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
Millions
GENERAL FUND ACTUAL REVENUES AND EXPENDITURES BY TYPE
2024-25 2023-24
Operating Revenues Transfers-In Operating Expense Transfers-Out General Fund Actual by Type
$-
$0.3
$0.5
$0.8
$1.0
$1.3
$1.5
$1.8
Millions
SALES TAX BY MAJOR BUSINESS GROUP
Q4 2025 Q4 2024
General
Consumer
Goods
State and
County
Pools
Autos
and
Transportation
Business
and
Industry
Building
and
Construction
Restaurants
and
Hotels
Fuel and
Service
Stations
Food
and
Drugs
Sales Tax by Major Business Group
$-
$1.0
$2.0
$3.0
$4.0
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Millions
SALES TAX RECEIPTS BY MONTH
2024-25 Actual 2024-25 Projected 2023-24 Actual
Sales Tax Receipts by Month
• Staffing: Under budget by 8.0%, or $5.8M, 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 8.8%, or $1.1M, due to timing of the Americans with Disabilities Act Transition Plan Study project and Classification and Compensation
Study.
Expenditure Variances
• Materials & Supplies: Over budget by 5.7%, or $255K, due to a significant increase in the amount of watering required of the Recreation & Parks Department necessitated by
Senate Bill (SB) 1383.
• Transfers Out: Under budget by 25%, or $2.13M. The
General Fund subsidy of the Library Fund is under budget due to the budgeted draw down of the Library Fund’s fund balance, as well as savings from vacant positions and lower- than-anticipated operating costs.
Expenditure Variances
GENERAL FUND
(in thousands)
Adopted
Budget
Amended
Budget
Year-End
Estimates
2024-25
Actual
Percent of
Amended
Budget
Department
Police $ 41,627 $ 42,403 $ 38,964 $ 40,155 94.7%
Fire 13,762 14,438 13,301 12,261 84.9%
Recreation & Parks 12,989 13,327 12,836 13,461 101.0%
City Manager’s Office 11,626 11,757 11,316 10,826 92.1% Public Works 7,193 7,221 7,248 6,803 94.2%
Community Development 6,091 7,200 7,252 6,553 91.0%
Finance 5,075 5,176 4,782 4,844 93.6%
City Attorney’s Office 1,817 1,822 1,822 1,659 91.1%
Mayor & Council 211 212 211 211 99.5%
Transfers 8,328 8,538 7,611 6,404 75.0%
Total Expenses & Transfers Out $ 108,719 $ 112,094 $ 105,343 $ 103,177 92.0% General Fund Expenditures by Department
94.7%
84.9% 101.0%
92.1%
94.2% 91.0%
93.6%
91.1% 99.5%
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
Millions
GENERAL FUND YEAR-TO-DATE ACTUAL
EXPENDITURES BY DEPARTMENT
Budget Actual
Expenditure Variances
MEASURE U FUND
(in thousands)
Adopted
Budget
Amended
Budget
2024-25
Actual
Percent of
Amended
Budget
Revenue $ 26,716 $ 26,716 $ 25,946 97.1%
Expenses
Community Development $ 824 $ 824 821 99.6%
City Manager’s Office 1,435 1,435 1,381 96.3%
Finance 3 3 3 100.0%
Library 1,015 1,015 994 97.9%
Recreation & Parks 3,071 3,489 2,975 85.3%
Fire 11,946 17,939 17,217 96.0%
Police 12,836 12,870 12,839 99.8%
Total Expenses $ 31,130 $ 37,575 $ 36,229 96.4%
M
EASURE
U
BY
C
ATEGORY
Balance Available
Public Safety
$31.8M
Youth Services
$1.7M
Qual. of Life
$2.7M
Through June, Measure U
expended 87.7 percent on
Public Safety, 4.8 percent on
Youth Services, and 7.5 percent
on Quality of Life.
Measure U Budget vs Actual
ENDING FUND BALANCE – GENERAL FUND
(in thousands)
FY 2024-25
Beginning
FY 2024-25
Ending Variance
Percent
Change
Assigned to:
Unassigned $ 7,650 $ 5,315 $ (2,335) -30.5%
Assigned for Carryovers 2,422 - (2,422) -100.0%
Economic Stabilization 19,800 19,800 - 0.0%
Post Employment Benefits 6,248 6,248 - 0.0%
Unfunded Pension Benefits 13,147 13,147 - 0.0%
Total $ 49,267 $ 44,510 $ (4,757) -9.7%
ENDING FUND BALANCE – GENERAL FUND
(in thousands)
FY 2025-26
Beginning
FY 2025-26
Ending Variance
Percent
Change
Assigned to:
Unassigned $ 5,315 $ - $ (5,315) -100.0%
Assigned for Carryovers - - - 0.0%
Economic Stabilization 19,800 19,800 - 0.0%
Post Employment Benefits 6,248 6,248 - 0.0%
Unfunded Pension Benefits 13,147 12,924 (223) -1.7%
Total $ 44,510 $ 38,972 $ (5,922) -12.4%
Fund Balance – General Fund
ENDING FUND BALANCE – MEASURE U FUND
(in thousands)
FY 2024-25
Beginning
FY 2024-25
Ending Variance
Percent
Change
Assigned to:
Unassigned $ 5,824 $ 1,881 $ (3,943) -67.7%
Assigned for Carryovers 6,340 - (6,340) -100.0%
Total $ 12,164 $ 1,881 $ (10,283) -84.5%
ENDING FUND BALANCE – MEASURE U FUND
(in thousands)
FY 2025-26
Beginning
FY 2025-26
Ending Variance
Percent
Change
Assigned to:
Unassigned $ 1,881 $ - $ (1,881) -100.0%
Assigned for Carryovers - - - 0.0%
Total $ 1,881 $ - $ (1,881) -100.0%
Fund Balance – Measure U Fund
ENDING FUND BALANCE – LEAF
(in thousands)
FY 2024-25
Beginning
FY 2024-25
Ending Variance
Percent
Change
Assigned to:
Unassigned $ 23,076 $ 23,076 $ - 0.0%
Total $ 23,076 $ 23,076 $ - 0.0%
ENDING FUND BALANCE – LEAF
(in thousands)
FY 2025-26
Beginning
FY 2025-26
Ending Variance
Percent
Change
Assigned to:
Unassigned $ 23,076 $ 620 $ (22,456) -97.3%
Total $ 23,076 $ 620 $ (22,456) -97.3%
Fund Balance – Local Economic Augmentation
Fund
• A Growing Gap…
2019-20A 2020-21A 2021-22A 2022-23A 2023-24A 2024-25A 2025-26F 2026-27F 2027-28F 2028-29F 2029-30F ANNUAL SURP/(GAP) 2,997 3,954 9,423 685 (795) (17,508) (9,359) (5,025) (2,839) (4,619) (2,773) CUMULATIVE GAP 0 0 0 0 (795) (18,303) (27,663) (32,687) (35,526) (40,145) (42,918) VARIANCE BASE 87,648 91,485 103,339 112,534 120,324 139,406 146,500 154,289 160,273 168,167 174,211 REVENUES 90,645 95,440 112,761 113,218 119,529 121,103 118,838 121,602 124,747 128,022 131,293 USES 87,648 91,485 103,339 112,534 120,324 139,406 146,500 154,289 160,273 168,167 174,211 $85,000
$95,000
$105,000
$115,000
$125,000
$135,000
$145,000
$155,000
$165,000
$175,000
$185,000
GENERAL FUND & MEASURE U FORECAST (EXCL. OPERATING TRANSFERS IN; $ IN '000'S) General Fund & Measure U Forecast
Enterprise Funds
• Revenues increased 3.5%, or $2.1M,
compared to the prior year due to
higher sewer service charges and
revenues generated through sales of
metered water.
• Water and Wastewater operational
expenses are under budget by 64.9
percent due to personnel savings from
vacant positions and timing of
maintenance and contractual
agreements.
Water & Wastewater
• Solid Waste revenues were $36.5M, or
100.2% of budget.
• Operating expenditures are at $31.9
million, or 86.1 percent, of budget. The
under expenditure is primarily
attributable to personnel savings from
vacant positions.
Solid Waste
• Fare revenue is $683 thousand, which
is about $57 thousand more than last
year.
• The farebox ratio is 8.3 percent based
on fares received and operating
expenses recorded to date.
Public Transit
Recommendations
Receive and file the Financial Report for the Fourth
Quarter ending June 30, 2025.