Santa Maria City Council
June 16, 2026

ORDINANCE NO. 2026-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA, CALIFORNIA, AMENDING CHAPTERS 8-10A AND CHAPTER 8-1 OF TITLE 8 OF THE

SANTA MARIA MUNICIPAL CODE CONCERNING CROSS-CONNECTIONS AND

APPLICATIONS FOR PUBLIC SERVICE
The City Council of the City of Santa Maria, State of California, does ordain as follows:

SECTION 1. Chapter 8-10A of Title 8 of the Santa Maria Municipal Code (“SMMC”) concerning Cross-Connections is amended as follows:

Section 8-10A.01. Purpose.
(a) To protect the public Potable Water supply of the City of Santa Maria from the possibility of contamination or pollution by isolating within the Responsible Party's internal or private water system(s) such contaminants or pollutants which could Backflow into the public water distribution system; and
(b) To promote the elimination or control of existing cross-connections, actual or potential, between the Responsible Party's in-plant Potable Water system(s) and non-potable water system(s), plumbing fixtures, and industrial piping system(s); and (c) To provide for the maintenance of a continuing program of Cross-Connection control which shall systematically and effectively prevent the contamination or pollution of the publicly owned Potable Water system.
(d) To provide outreach and education on Cross-Connections to the community, water customers, and City staff.
(e) To meet the State of California’s cross-connection control program standards.

Section 8-10A.02. Definitions.
“Approved” means accepted by the Director of Utilities as meeting an applicable specification stated or cited in this ordinance, the Cross-Connection Control Plan, or as suitable for the proposed site.
“Approved Backflow Prevention Assembly” or “BPA” means a mechanical assembly designed and constructed to prevent Backflow, such that while in-line it can be maintained and its ability to prevent Backflow, as designed, can be field tested, inspected and evaluated. “Backflow” means an undesired or unintended reversal of flow of water and/or other liquids, gases, or other substances into a public water system’s distribution system or approved water supply. “Cross-Connection” means any actual, potential, or temporary connection (such as swing connections, removable sections, four-way plug valves, spools, dummy sections of pipe, swivel or change-over devices, sliding multiport tubes, or similar) or structural arrangement between the public Potable Water distribution system, including a piping system connected to the Distribution System and located on the Premises of a water user or available to the water user, and any source or system containing liquid, gas, or other substances that may enter the public Potable Water system.

“Cross-Connection Control Plan” or “CCC Plan” means the City’s guiding document establishing the methods, procedures, and policies the City has in place to comply with the requirements of the Cross-Connection Control Policy Handbook.
“Cross-Connection Control Policy Handbook” or “CCCPH” means the State of California crossconnection control (CCC) program standards as established in the CCCPH, which became effective July 1, 2024, and are incorporated into the State of California’s Drinking Water Regulations. The CCCPH and its standards apply to all California public water systems (PWSs), as defined in California’s Health and Safety Code (CHSC, section 116275 (h)). Compliance with this CCCPH is mandatory for all California PWSs. The CCCPH updated and replaced Title 17 of the California Code of Regulations.
“Director of Utilities” means the administrator/manager in charge of all aspects of the Utilities Department.
“Distribution System” means the network of conduits used for the delivery of Potable Water from the source to the Responsible Party's water system.
“Operational Tests” means BPA tests performed to test the functioning capabilities of the assembly using a properly calibrated differential pressure gauge and performed as published in the Manual of Cross-Connection Control – Tenth Edition, or any successor edition. “Potable Water” means water which is satisfactory for drinking, culinary, and domestic purposes and meets the requirements of the United States Environmental Protection Agency (USEPA) or its successor organization.
“Premises” means any location, building, structure, residence, garage, room, shed, shop, store, dwelling, lot, parcel, land or portion thereof, whether improved or unimproved. “Responsible Party” means the owner, operator, manager or occupant of a Premises which has water service from a public Potable Water distribution system; the owner, manager or operator of a private water system that has water service from a public Potable Water distribution system. “Service Connection” means the terminal end of a tie-in to the public Potable Water system; i.e., the location where the City of Santa Maria loses jurisdiction and sanitary control over the water.

If a City-owned meter is installed at the end of the tie-in to the public Potable Water system, then the Service Connection generally means the downstream end of the meter. “Service Line” means private piping extending from the Service Connection to the Responsible Party's point(s) of use.
“Water System” means the piping and all related appurtenances providing Potable Water to a Premises. In the City of Santa Maria, the water system is made up of two parts:
(1) The public Potable Water distribution system includes all the facilities and the network of conduits used for the delivery of water that remain under the control of the City of Santa Maria up to the point where the Responsible Party's system begins. (2) The Responsible Party's system includes those parts used for the delivery of water to points of use located on the responsible party's Premises beyond the termination of the public Potable Water distribution system.

Section 8-10A.03. Authority of Director of Utilities.

The Director of Utilities shall have the authority to prepare, amend, and enforce the CrossConnection Control Plan to protect the public Potable Water distribution system from contamination or pollution due to the Backflow of contaminants or pollutants through the Service Connection and to comply with the Cross-Connection Control Policy Handbook.

Section 8-10A.04. Requirements.
(a) By agreeing to start or continuing to accept utility services, the Responsible Party agrees to comply with all regulations pertaining to such services pursuant to requirements in the Santa Maria Municipal Code and the Conditions for Service established in the Cross-Connection Control Plan.
(b) No Responsible Party will install, maintain, or change a Service Connection or Service Line without first complying with the CCC Plan.

Section 8-10A.05. Enforcement, Violations, and Penalties. (a) A violation of the CCCP is a violation of this ordinance. (b) A Notice of Violation will be given to any Responsible Party found to be in violation of any provision of this ordinance or the adopted CCC Plan. The Responsible Party shall correct the violation within the time frame given in the Notice of Violation. If the Director of Utilities, or his/her designee, determines that the violation is creating or contributing to the existence of an imminent hazard, the Responsible Party shall correct the violation immediately. In any case of violation, the Director of Utilities has the authority to discontinue water service at any time the Director of Utilities determines the violation causes an imminent risk to the public Potable Water distribution system or Potable Water supply. (c) Water service may be terminated after a second notification of violation of the same provision within a one-year period. Any person violating any provision of this ordinance shall pay to the City all expenses incurred by the City in repairing any damage to the public Potable Water distribution system or actions required by the City to be taken to protect the Potable Water supply caused in whole or in part by such violation and any expense incurred by the City in investigating such violation.
(d) In addition to other remedies in this ordinance, any Responsible Party violating any of the provisions herein is guilty of a misdemeanor and upon conviction thereof is punishable in accordance with Chapters 1-6 of the Santa Maria Municipal Code (SMMC). As additional remedies, any Responsible Party in violation of this code may be subject to summary abatement proceedings, restraining order, injunction issued by a court of competent jurisdiction, administrative citation pursuant to Chapter 1-9 of the SMMC, administrative penalty pursuant to Chapter 1-8 of the SMMC code, or any other remedy provided by law.

SECTION 2. Chapter 8-1.07 of Title 8 of the Santa Maria Municipal Code (“SMMC”) concerning Cross-Connections is amended as follows:

Section 8-1.07 Appeals
In the event that any user or consumer is aggrieved by any ruling of the Director of Utilities made pursuant to any of the provisions of this chapter and Chapters 8-9, 8-10, 8-10A, and 8-13, such consumer or user may appeal from such ruling to the City Manager within the time and in the manner set forth in Section 8-12.1406. The City Manager's action on such appeal shall likewise be made and become final pursuant to the provisions of Section 8-12.1406.

SECTION 3. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines, and the City’s environmental procedures, and has been found to be exempt pursuant to Section 15601(b)(3) (general rule) of the CEQA Guidelines, because the City Council hereby finds with certainty that there is no possibility the passage of this Ordinance amending the public facilities and services code will have a significant effect on the environment.

SECTION 4. If any part or provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the remainder of the chapter, including the application of that part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this ordinance are severable.

SECTION 5. This Ordinance shall be in full force and effect 30 days after its passage. Within 15 days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

SECTION 6. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained.

In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
(This space is intentionally blank.)

INTRODUCED at a regular meeting of the City Council held the ___ day of ____, 2026 and PASSED AND ADOPTED the ___ day of ____, 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Donna Schwartz
Chief Deputy City Clerk

Alice M. Patino
Mayor
APPROVED AS TO FORM:
_________________________
City Attorney
APPROVED AS TO CONTENT:
_________________________
City Manager

City of Santa Maria Regulatory Review – 12/30/2025
Cross-Connection Control Plan
Attachment
B
City of Santa Maria Backflow Incident Response Plan

Backflow Incident Response Plan
City of Santa Maria Draft – 12/30/2025
Cross-Connection Control Plan Attachment B-1
City of Santa Maria Backflow Incident Response Plan
The City will notify the State Water Board and local health agencies of any known or suspected incident of backflow within 24 hours of the determination. If required by the State Water Board, the City will issue a Tier 1 public notification pursuant to CCR, Title 22, Section 64463.1.

If required by the State Water Board, the City will submit, by a date specified by the State Water Board, a written incident report describing the details and affected area of the backflow incident, the actions taken by the City in response to the backflow incident, and the follow up actions to prevent future backflow incidents. The written report will contain, at a minimum, the information requested in Appendix F.

Backflow Incident Investigation
If a water quality complaint or change in water quality investigation determines that a backflow incident has or is suspected of having occurred, the City will initiate a backflow investigation.

Additionally, the City distribution system pressure is routinely monitored. If pressure readings indicate that a broad system pressure drop has occurred, which could produce a situation leading to a backflow or back-siphonage incident, the City will initiate a water quality investigation.

All information from the backflow incident investigation, according to Appendix F of the CCCPH, will be documented. The City will notify the State Water Board and local health agencies of any known or suspected incidents of backflow within 24 hours of determination.

State Water Board – Division of Drinking Water:

District 06 – Santa Barbara
Office: (805) 566-1326 Emergency: (805) 440-9627
Santa Barbara County Environmental Health:

Day: (805) 346-8463 Evening: (805) 315-5805
Day: (805) 346-8470 Evening: (805) 346-8470
Santa Barbara Public Health Department EMS:

Day: (805) 694-8301 Evening: (805) 694-8301

Backflow Incident Response Plan
City of Santa Maria Draft – 12/30/2025
Cross-Connection Control Plan Attachment B-2
Consumer Notification
• The City will notify all consumers of an upset in water quality and advise not to use or boil water prior to use, as appropriate. The City will default to AWWA recommendations for boil water advisory.
• The City will follow the City’s Water Quality Emergency Notification Plan. Notices shall be circulated via the following manner.
o Electronic notification using the City’s “Everbridge” text and call system or Wireless Emergency Alert
o City social media
o City webpage
o Local TV
o Local Radio
o Local News
• The notifications will be issued in both English and Spanish. • Police and Fire Department vehicles equipped with portable speakers are available to traverse the City limits for further dissemination if the electronic notifications systems require backup.
• A telephone answering service will be established at the dispatch center to answer questions until the City's Emergency Operations Center (EOC) can be manned and calls can be transferred to the staff there. • Notification via “Everbridge”, WEA, and social media can be accomplished in a very short time. If needed, sound trucks will take approximately two hours to traverse the entire City limits. Sound truck notification will be on a one-time basis while radio and television coverage will continue as needed.

Originating Premise Location
• The City will attempt to locate the originating premise or area prior to flushing the distribution system.
• The City will conduct a thorough investigation until the originating premise location of the backflow incident is identified.
• After identification, the City will work with the originating premise location to identify all possible contaminant sources from the backflow incident.

Premise Containment / System Containment
• After source identification, the City will verify that the backflow origination premise has been contained.
• The City will verify if any part of the distribution system needs to be contained and contain it appropriately.

Backflow Incident Response Plan
City of Santa Maria Draft – 12/30/2025
Cross-Connection Control Plan Attachment B-3
Disinfection of the System
• The City will collect a water sample or samples before flushing or disinfection of the system has been initiated.
• The City will flush and/or disinfect contaminated service lines. The City will default to AWWA recommendations for flushing procedures and in-house SOP procedures for disinfection.
• As appropriate, affected customers will be advised to adequately flush service lines.

Sampling Requirements
• The City will collect a water sample or samples before flushing or disinfection of the system has been initiated.
• The City will submit the water samples to a laboratory or conduct field sampling for the following parameters (DDW recommended parameters):
o Total Coliform
o E. coli
o Free and Total Chlorine Residual
o Odor
o Turbidity
o Temperature
o Color
Corrective Actions
• After completion of the backflow incident investigation, the City will review all findings to assure appropriate backflow protection measures are implemented for the originating premise location.

Backflow Incident Response Plan
City of Santa Maria Draft – 12/30/2025
Cross-Connection Control Plan Attachment B-4
BACKFLOW INCIDENT REPORT FORM (Minimum Requirements)
Water System: _________________________________________________________ Water System Number: __________________________________________________ Incident Date: __________________________________________________________ Incident Time (if known): __________________________________________________ Incident Location: _______________________________________________________ How was the incident discovered? __________________________________________ Backflow Origin
Premise Location: _______________________________________________________ Address: ______________________________________________________________ Premise Contact Person: _____________________ Title: _______________________ Phone: _______________ Email: __________________________________________ Connection Type: (please check one)
 Industrial  Commercial  Single-Family Residential  Multi-Family Residential  Irrigation  Temporary Service Connection
 Other: ______________________________________________________________ Description and source of backflow substance (please be as descriptive as possible):
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ If available, please attach an MSDS or other chemical description form Was the backflow fluid contained within the user side? YES  NO  Estimated Number of Affected Persons: ______________________________________ Number and description of consumer complaints received:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Did any consumers report illness? Please describe.
______________________________________________________________________ ______________________________________________________________________ Backflow Incident Response Plan
City of Santa Maria Draft – 12/30/2025
Cross-Connection Control Plan Attachment B-5
______________________________________________________________________ If applicable, please describe the consumer notification:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

INVESTIGATION
Please describe the water system investigation including time frames:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ What was the area system pressure? _______________________________________ Is this within typical range: YES  NO  Typical Pressure: _____________________ Was a sample of the water contaminated by the backflow incident collected and stored before flushing? YES  NO 
Please describe all sampling:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ DDW recommends laboratory or field sampling for the following parameters: total coliform, E. coli, free and total chlorine residual, pH, odor, turbidity, temperature, and color. Additional sampling should be collected at the PWS and regulatory agency’s discretion.

CORRECTIVE ACTIONS
Please describe the corrective actions taken by the water system:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Was the chlorine residual increased after discovery of backflow incident? YES  NO  Backflow Incident Response Plan
City of Santa Maria Draft – 12/30/2025
Cross-Connection Control Plan Attachment B-6
Date of the last cross-connection control hazard assessment of the premise with the backflow incident conducted: ______________________________________________ Did the premise have backflow prevention assemblies? YES  NO  Date of most recent backflow prevention assembly test(s): _______________________ When was the Division of Drinking Water or Local County Health office notified? Date: __________________Time: __________ Contact Person: __________________ Was the Division or Local County Health notified within 24 hours? YES  NO  Other agencies or organizations contacted? __________________________________

CERTIFICATION
Name: _________________________________ Job Title: _______________________ Certification(s): _________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Please list all cross-connection control related certifications including number and expiration date
I certify that the forgoing information is true and correct to the best of my ability.

Signature: ___________________________ Date: ____________________________ Attach the following applicable documentation
• Laboratory Test Results
• Sketch of the cross-connection and modifications
• MSDS or chemical information forms if chemical hazard is known • Applicable backflow assembly test reports including the most recent test before the incident
• Other relevant supporting documentation

City of Santa Maria Regulatory Review – 12/30/2025
Cross-Connection Control Plan
Attachment
C
City of Santa Maria Cross-Connection Control Questionnaire City of Santa Maria Regulatory Review – 12/30/2025
Cross-Connection Control Plan Attachment C-1
Cross-Connection Control Questionnaire
Dear Water Customer:

State Water Resources Control Board Cross-Connection Control Policy Handbook (CCCPH) Standards and Principles for California’s Public Water Systems became e.ective July 1, 2024. The CCCPH and its standards apply to all California Public Water Systems as defined in California’s Health and Safety Code (CHSC, section 116275 (h)). Compliance with the CCCPH is mandatory for all California PWSs. The primary objective of the Cross-Connection Control Policy Handbook (CCCPH) is the protection of public health through the establishment of standards intended to ensure a public water system’s (PWSs) drinking water distribution system will not be subject to the backflow of liquids, gases, or other substances.

The CCCPH requires that each community water system conduct an initial hazard assessment on each user premise within its service area. Subsequent to the initial hazard assessment, a follow-up hazard assessment is required when certain criteria are met. To maintain compliance with the CCCPH, the City of Santa Maria is conducting a cross-connection control hazard analysis of its residential customers.

For most residential customers, there is a minimal hazard presented to the City’s drinking water system. There are, however, some residential customers who have certain activities or plumbing systems which present a higher degree of hazard to the City’s drinking water system. For these customers, the installation of a backflow prevention assembly on their water service line may be required.

Participation in this hazard analysis is mandatory. It may be returned via e-mail to utilities[email protected] or mailed to 601 Black Rd, Santa Maria, CA 93458. If you have any questions about the analysis or how to fill out the questionnaire, please contact me at the contact information provided below.

Important Definitions:

Backflow: an undesired or unintended reversal of flow of water and/or other liquids, gases, or other substances into a public water system’s distribution system or approved water supply.

Backflow prevention assembly: a mechanical assembly designed and constructed to prevent backflow, such that while in-line it can be maintained and its ability to prevent backflow, as designed, can be field tested, inspected and evaluated.

Sincerely,
Jay Maxson
Regulatory Compliance Specialist – Cross-Connection Control Specialist – Water Resources City of Santa Maria | Utilities Department | 601 Black Rd, Santa Maria, CA 93458 ✆: 805.925.0951 Ext: 7260 |✉: [email protected] City of Santa Maria Regulatory Review – 12/30/2025
Cross-Connection Control Plan Attachment C-2
Yes No
Is the premise a single family dwelling?  
If Yes, proceed.

Is a backflow prevention assembly present?  
Are any of the following existing or proposed?
Connection to auxiliary water supply such as a well or cistern tank?   Residential fire sprinkler system?  
Is the system looped and connected to a routinely used plumbing fixture?   Is the system piping constructed of materials certified as NSF/ANSI Standard 61?   Pressure booster pump? (e.g., pump supplied hot water circulating system)   Commercial or agricultural use?  
Water treatment system? (e.g., self-regenerating water softener, RO)   Swimming pool, hot tub, or water feature directly connected to water supply?   Livestock activities?  
Solar heating system with a direct connection to water supply?   Hose bibbs?  
If yes, are they protected by a nonremovable hose bibb vacuum breaker?   Home-based business? (e.g. beauty salon, pet grooming, photo lab/dark room)   If yes, list type: ______________________________________________________________________________ Notes:
____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ By completing this form, you are helping determine cross-connection hazard at your premise.

Please return via e-mail to [email protected] or mailed to 601 Black Rd, Santa Maria, CA 93458.

City of Santa Maria Regulatory Review – 12/30/2025
Cross-Connection Control Plan
Attachment
D
City of Santa Maria Hazard Assessment
Hazard Assessment
City of Santa Maria Regulatory Review – 12/30/2025
Cross-Connection Control Plan D-1
Hazard Assessment
Date:

Water Customer Information
Business Name:

Owner Name:

E-mail Address:

Address:

Phone:
☐ Initial Hazard Assessment ☐ Follow-Up Hazard
Assessment
Cross-Connection Control Credentials
Name:

Signature:

Cross-Connection Control Certification Training:

Cross-Connection Control Specialist Number:

Please submit copies of this completed form by mail or e-mail to:

City of Santa Maria Utilities Department – Regulatory Compliance Division, 2065 East Main Street, Santa Maria, CA 93454
E-Mail: [email protected]
Hazard Assessment
Yes No Yes No Yes No
1 2
3 4
5 6
7 8
9 10
Detailing of Protection
Size
1 2
3 4
5 6
7 8
9 10
1 2
3 4
5 6
7 8
9 10
Does the premises contain any situations related to Appendix D of the CCCPH? If yes, the premises is considered high hazard.

Was access to the water user premises denied or restriced? If yes, the premises is considered as high hazard.

Detailing of Hazards
Make
Water Use
SerialModel
Existing Protection Approved Adequate
No
Yes No
Yes
City of Santa Maria
Cross-Connection Control Plan
Regulatory Review - 12/30/2025
D-1
Hazard Assessment
Observance of cross-connections?
List the type and use of materials handled and present, or likely to be, on the user premises:

List the degree of piping system complexity and accessibility:

Does the premises have auxiliary water supplies, pumping systems, or pressure systems? Notes:

Are there any distribution system conditions that increase the likelihood of a backflow event? (e.g., hydraulic gradient differences impacted by main breaks and high water demand situations, multiple service connections that may result in flow-through conditions, etc.) Have there been any previous backflow incidents on the user premises? If yes, list date and incident specifics:

Degree of hazard Identified:

Does the premise have adequate protection?
No
No
Low Hazard No Hazard
Yes No
High Hazard
Yes
Yes
Yes No
City of Santa Maria
Cross-Connection Control Plan
Regulatory Review - 12/30/2025
D-2
Hazard Assessment
Notes / Conclusion:

City of Santa Maria
Cross-Connection Control Plan
Regulatory Review - 12/30/2025
D-3

City of Santa Maria Regulatory Review – 12/30/2025
Cross-Connection Control Plan
Attachment
E
City of Santa Maria List of Air Gaps
and
Air Gap Inspection Procedure
List of Air Gaps
City of Santa Maria Regulatory Review – 12/30/2025
Cross-Connection Control Plan E-1
City of Santa Maria List of Air Gaps
One Air Gap
Address: 1200 W La Brea Ave Santa Maria, CA 93458
Reason: Underground Cistern Tanks used for irrigation supplement.

Notes: RP backflow assembly also located in between AG and PWS supply.

Air Gap Inspection Procedure
DATE DUE:

Manufacturer Type Model Size Serial # Facility # Protection AIR Air Gap
Mailing Address: Site Location:

Air Gap Installation Compliant
T Discharge Pipe Obstructed
E
S Spill Level Easily Determined
T
Measured Vertical Inches Above Overflow Rim
Supply Rim Diameter
R
E
P
A
I
R
S
COMMENTS:

INITIAL TEST DATE
Certified Tester Number Tested by: (Print)
Tested by: (Signature)

FINAL TEST DATE
Certified Tester Number Tested by: (Print)
Tested by: (Signature)
RETURN TO:
[email protected]
Acknowledged:

Owner/Occupant
Air Gap Inspection
Annual Air Gap Inspection Report
City of Santa Maria
Utilities Department - Regulatory Compliance Division
City of Santa Maria Utilites Department - Regulatory Compliance Division, 2065 East Main Street, Santa Maria, CA 93454 a building permit
must be obtained
through the City
Community
For all backflow
installations
and replacements,
If assembly replaced
state reason:

EMAIL:

If FAILED, please send the test report to the City of Santa Maria within 72 hours. of Santa Maria
Development
Department,
Building Division
at 805-925-0951
Ext. 2241.

Failed
Not Repairable
No Longer Meets
Standard
Domestic
Irrigation
Fire Service
Internal
Parts Not Available
Passed
Passed Failed
No
No
No
Yes
Yes
Yes
City of Santa Maria
Cross-Connection Control Plan
Regulatory Review - 12/30/2025
E-2

COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Rebecca Campbell, Director of Finance
DATE: June 16, 2026
SUBJECT: Adoption of a Resolution for Proposed FY 2026-28 Budget Description:

The City Council will receive an update on the Fiscal Year (FY) 2026-28 Budget, including a General Fund and Measure U overview and will consider adopting a Resolution adopting the FY 2026-28 Biennial Budget.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

1. Receive a presentation on the Fiscal Year (FY) 2026-28 Biennial Budget and, following discussion and consideration;

2. Adopt a Resolution adopting the budget for Fiscal Years 2026 – 2027 and 2027-2028, and delegating the City Manager to implement the same.

BACKGROUND:

City staff kicked off the financial planning of the FY 2026-28 Biennial Budget, encompassing FY 2026-27 and FY 2027-28, in October 2025. Internal review of departments’ preliminary budget proposals concluded in May and staff received feedback from the City Council and public at-large during a public hearing on June 2, 2026. The City Council provided feedback and direction to staff, which has been factored into the Proposed FY 2026-28 Biennial Budget presented for adoption.

By State law, the City must adopt a balanced budget by June 30th. The City Manager’s proposed budget is aligned with the City Council’s adopted goals and priorities. Longterm fiscal sustainability will be essential to achieve financial stability, preserve service levels, and maintain adequate reserves for future needs and emergencies. This proposed budget, like many before it, uses a variety of strategies to close a very significant multimillion-dollar structural deficit between revenues and expenditures in both fiscal years.

DISCUSSION:

Structural Budget Balance:

The Government Finance Officers’ Association’s best practice on achieving a structurally balanced budget summarizes the principle, as follows:
2 Most state and local governments are required to pass a balanced budget; however, a budget that may fit the statutory definition of a “balanced budget” may not, in fact, be financially sustainable. For example, it could include non-recurring resources such as asset sales or reserves to fund ongoing expenditures, and therefore not be in structural balance. A true structurally balanced budget is one that supports its financial sustainability for multiple years into the future. A government needs to make sure it’s aware of the distinction between satisfying the statutory definition and achieving a true structurally balanced budget.

Budget Estimates and Assumptions: Unlike most other financial documents produced by the City, the budget is forward looking and, therefore, based entirely on estimates. Staff takes practical steps to improve reliability and reduce the risk of budget estimates.  Starting with Revenues: The City’s budget process starts with objectively determining the best estimate of revenue that will be available. Staff seeks to use the best data available to analyze a variety of major revenue sources, some of which are considered volatile and subject to economic pressures. Property taxes are generally the most stable, although subject to limitations and other provisions imposed by state law that complicates the estimating process. Sales taxes are more directly and immediately tied to broad economic conditions, so a reasonable economic forecast needs to underlie the estimates for those taxes. The City enlisted the support of HdL to serve as a consultant on these revenue streams.

Trends and assumptions for other sources of revenue such as fees, contractual revenue, and intergovernmental support are also carefully examined by each department. It’s important to consider how risks across revenue sources are correlated. For example, a reduction in contractual revenue, such as the agreement with the high schools for the use of the Paul Nelson Aquatic Center or the Airfact Rescue Fire Fighting (ARFF) services provided at the Santa Maria Public Airport, can negatively affect services and programs offered by the City.

In the context of building a structurally balanced budget, revenue estimates for the City’s ongoing operations exclude one-time revenue sources such as beginning fund balanced, one-time payments and other windfalls. HdL helps the City identify extraordinary spikes in volatile taxes by separating the ongoing base from the onetime components of prior-year major revenue collections.  The Other Side of the Ledger: Estimating expenditures has its own nuances. For the City, employee compensation is the largest category of expenditures in the General Fund and Measure U Fund. This spending is technically complex, with varying compensation and benefit plans among employee bargaining units and classifications. The use of archaic tools and methods increases the manual effort needed to forecast compensation. This will be improved through implementation of modern financial software that will help evaluate assumptions and make the forecast as reliable as possible.
3 The minimum goal is to ensure that all costs of providing current service levels, including known inflationary pressures, required to operate each department and its programs can be reasonably anticipated and included in the budget up front.

This approach, as opposed to simply assuming the prior year’s budget will be sufficient, will help avoid midyear budget increases that could shift the budget deeper into structural deficit.

Conversely, budgeting for the estimated cost of current services, rather than assuming the prior year’s budget should be replicated, will also help minimize excessive “padding” in department budgets. Departments will insist they need that flexibility for unanticipated costs; however, the City could use a central contingency for such costs instead, with clear guidelines for determining that a cost is truly unavoidable and that all other resources available to a department have been used.

Finally, a key assumption on the expenditure side of the budget is how unspent funds resulting from vacancies, spending delays, or cost savings at year-end are treated. The City does not assume any year-end savings in its structural budget calculation. Savings from previously approved one-time operating projects (such as the General Plan Update), tied to purchase orders, grants, and/or capital projects are allowed to be carried forward to the next fiscal year where all other operating savings fall back to fund balance.
 Capital Investment Needs: The City needs to regularly assess its capital assets, build realistic capital improvement plans for major capital projects, and just as importantly, include an appropriate amount of annual funding for routine maintenance projects that don’t rise to the level of capital investment. For buildings, this means periodically evaluating facility conditions as comprehensively as possible and using industry standards based on dollars per square foot to establish an ongoing funding pool for building maintenance and upgrades, with clear processes for spending the funds as effectively as possible to prevent higher renovation or construction costs in later years.

The City’s pavement network is one of its most valuable assets and protecting that investment requires a consistent focus on preservation. Current pavement management analysis identifies approximately $131 million in pavement needs across the network (refer to Attachment E). While that number is significant, the larger challenge is the ongoing deterioration that occurs each year as streets continue to age and traffic volumes increase. The City’s strategy is to apply the right treatment at the right time, preserving streets before they require more costly rehabilitation or reconstruction. City crews perform neighborhood overlays, patching, and other pavement repairs in house, while the City utilizes contracted dig out operations and chip seal treatments on arterial roadways to maximize the value of available funding and extend the life of existing pavement. By combining in-house resources with targeted contract work, the City is able to address more roadway needs each year, improve overall network conditions, reduce long-term infrastructure costs while making the most of every transportation dollar invested. 4  Transparency About the Bottom Line: Just as there is a major distinction between a balanced budget that is based on the use of one-time resources and a structurally balanced budget, there’s also a distinction to be drawn between a budget that’s structurally balanced on paper at the start of the fiscal year and a budget that’s likely to result in actual structural balance at the close of the fiscal year.

The City’s budget book has historically included a clear and easily understood analysis of the structural deficit in the General Fund. Refer to Attachment D that provides information on historical deficit budget reports for the City.

The City Manager’s proposed budget reports that the FY 2024-25 actual results for the General Fund and Measure U Fund resulted in shortfalls and required use of one-time reserves to resolve the situation. Attachment F provides an updated Fund Analysis for FYs 2024-25 (results updated in the table below) through FY 2027-28. The General Fund required the use of $284,000 to pay for ongoing operations. The Measure U Fund required the use of $2.8 million for ongoing operations and $1.1 million for one-time capital expenditures.

FY 2024-25 ACTUAL
General Fund Measure U Fund
Revenues & Transfers In $ 101,076,763 $ 25,946,336
Expenditures* & Transfers Out 101,361,162 28,779,448
Structural Surplus/(Deficit) $ (284,399) $ (2,833,112)
Beginning Fund Balance $ 10,071,920 $ 12,257,230
Use of Pension Reserve - -
Use of Fund Balance – Oper. 284,399 2,833,112
Use of Fund Balance – Cap. - 1,095,851
Transfer from LEAF - -
Ending Fund Balance $ 9,787,521 $ 8,328,267
*Measure U Expenditures exclude Capital Projects.

The Proposed FY 2026-28 Biennial Budget Book’s Six-Year Financial Plans for General Fund & Measure U section on pp. 61-68 discuss the structural deficit that persists in the General Fund and Measure U Fund. The following table shows ongoing expenditures in the General Fund exceed the ongoing revenues by $7.3 million in FY 2026-27 and $7.9 million in FY 2027-28. It also shows the City Manager’s proposed budget includes a recommendation to balance FY 2026-27 with a transfer in from Local Economic Augmentation Fund’s (LEAF) one-time savings of $7.3 million.

CITYWIDE BUDGET SUMMARY – GENERAL FUND
FY 2026-27 FY 2027-28
Revenues & Transfers In $ 100,340,777 $ 101,375,206
Expenditures & Transfers Out 107,616,815 109,226,765
Structural Surplus/(Deficit) $ (7,276,038) $ (7,851,559) Use of Pension Reserve - -
Use of Fund Balance - -
Transfer from LEAF 7,276,038 -
5 Net Budget Surplus/(Deficit) $ - $ (7,851,559)
The following table shows ongoing expenditures in the Measure U Fund exceed the ongoing revenues by $1.5 million in FY 2026-27 and $1.6 million in FY 2027-

28. It also shows the City Manager’s proposed budget includes a recommendation to balance FY 2026-27 with $1.5 million of one-time fund balance, and FY 2027- 28 is projected to be unbalanced that will need to be addressed at a later date.

CITYWIDE BUDGET SUMMARY – MEASURE U FUND
FY 2026-27 FY 2027-28
Revenues & Transfers In $ 26,808,674 $ 27,170,066
Expenditures & Transfers Out 28,279,990 28,922,230
Structural Surplus/(Deficit) $ (1,471,316) $ (1,580,810) Use of Fund Balance 1,471,316 1,152,419
Transfer from LEAF - -
Net Budget Surplus/(Deficit) $ - $ (428,391)
Fiscal Year 2026-28 Biennial Budget Investments:

Once revenue estimates are established, the Budget Team guides the remainder of the budget development process, balancing available resources through its evaluation of Supplemental Budget Requests (SBRs) and Capital, Maintenance, and Equipment Project (CMEP) proposals. The goal was to offset choices to increase ongoing spending in one area with decreases in ongoing spending in another. This discipline is critical to building sustainable, structurally balanced budgets. The benefits of structural budget balance are manifold. A government that has a structurally balanced budget:
 Won’t reduce its reserves in a haphazard manner.
 Will maintain the ability to adjust its budget from year-to-year in a deliberative manner.
 Will be able to plan over a multiyear period.
 Will be more nimble in responding to an economic downturn or other major fiscal shock.

Further, those who rely on the City’s budget, including residents who receive services and external entities that receive ongoing payments will be subject to fewer unnecessary fluctuations in service or funding levels.

Personnel:

In total, the proposed FY 2026-28 budget includes 713 positions (703.80 FTE), which is a decrease of 39 positions (37.80 FTE) from the FY 2025-26 Mid-Cycle Adopted Budget.

The budget indicates the deletion of 38 positions in the General Fund and 2 positions (2.00 FTE) in the Library Fund, the addition of 2 positions (2.00 FTE) in the Enterprise Funds, and the shift of 4 positions from the General Fund to the Assessment Districts, and the shift of a portion of 4 positions from the General Fund to the General Liability Fund. There are no employee layoffs anticipated.
6 Supplemental Budget Requests:

Departments assessed their operational needs and requested the addition, consolidation, or deletion of positions and/or operating budget through Supplemental Budget Requests (SBRs) that have a nexus to support and align with the City Council’s goals. There were 78 SBRs submitted, of which 63 are incorporated into the Proposed Budget. Some of the SBRs are revenue-backed through the User Fee Study Update, such as the addition of limited-service staff for the Community Development and Police Departments, others are necessary to fund contractual obligations, such as the Animal Services Contract and software maintenance agreements. The fiscal impact for the General Fund and Measure U totals $1.30 million in FY 2026-27 and $1.57 million in FY 2027-28. Other SBRs ensure the budget is sufficient to replace the City’s business equipment, e.g., laptops, computers, etc., and pay for General Liability and Workers’ Compensation insurance premiums and claims. Approved SBRs by fund and department are summarized in Attachment C. Many of these are also highlighted in the Department Budget Detail section of the City of Santa Maria Proposed FY 2026-28 Biennial Budget Book.

Budget Reduction and Revenue Generation Initiative:

The Proposed Budget incorporates additional balancing measures, that include, but are not limited to:
 Citywide reduction of contract/consulting services, training, subscriptions & other operational costs: $1,451,000
 Increase projections for less predictable revenues and newly proposed fees:
$1,727,000
 Close Paul Nelson Aquatic Center for six (6) months (Dec-May), including the unfunding of assigned Limited Service positions, unless the City Manager identifies additional savings equal to the amount proposed to be cut, which must occur prior to October 31, 2026: $344,000
 Delete vacant positions and/or reallocate filled positions to other Funds, where justifiable (8.30 FTEs): $1,167,000
 Unfund Limited Service positions in Library, Recreation & Parks, Police and Public Works (impacts programs and operating hours): $446,000
 Eliminate subsidies to United Way, Historical Museum, and Museum of Flight:
$70,000
 Assumes that most Governmental Fees are set to full recovery level, estimating the potential revenue growth of $2.012 million, of which $1.742 million impacts the General Fund.
 Includes balancing the General Fund in FY 2026-27 with a transfer in from the LEAF reserve’s one-time savings of $7.3 million.

Presented is a two-year budget comprised of $368.0 million for FY 2026-27 and $425.3 million for FY 2027-28, inclusive of a $50.0 million and $108.3 million capital project budget respectively. The Proposed Budget includes funding for supplemental budget requests that are necessary to attain Council Goals and to allow for the effective delivery of priority public services.

The chart below shows the General Fund fiscal forecast. The Revenues line excludes operating transfers in of $9.5 million in FY 2026-27 and $2.3 million in FYs 2027-32:
7 The chart below shows the Measure U forecast based on Measure U continuing to fund the same level of services. The forecast is unbalanced due to expenditures outpacing revenue growth, which means that Measure U sales tax revenue will be able to fund lower levels of service than in the current fiscal year.
8 Citywide Sources & Uses:

The City of Santa Maria categorizes operating revenues into six major categories, each with distinct revenue characteristics. Operating revenues and transfers in are anticipated to be $284.4 million in FY 2026-27 and $279.1 million in FY 2027-28. The year-over-year decrease is due to the one-time draw on LEAF reserves to balance FY 2026-27.

Excluding transfers in, operating revenues are expected to total $263.6 million in FY 2026-27 and $265.6 million in FY 2027-28.

The City’s FY 2026-28 Biennial Budget totals $368.0 million in FY 2026-27 and $425.3 million in FY 2027-28, inclusive of capital, maintenance and equipment project budgets.

Proposed Policy Recommendations for Council Consideration and Policy Direction:

Staff reported on June 2nd that the City’s auditors discovered a significant issue on May 29, 2026. During the audit process, Finance staff learned that General Capital Fund and General Fund revenues were overstated in FY 2023-24 due to an incorrect transfer involving LEAF reserves. The transaction resulted in General Capital Fund and General Fund reserve balances appearing higher than were actually available, creating an unrealistic representation of available resources.

Analysis of the balances resulting from actual activity for FYs 2024-25, projected estimates for FY 2025-26, and the proposed budget for FY 2026-27 now reveal that LEAF is anticipated to transfer in FY 2025-26 $7.0 million to the General Fund and $5.7 million to the General Capital Fund and to transfer in FY 2026-27 $7.3 million to the General Fund and $616,000 to the General Capital Fund. As a result, LEAF is anticipated to end FY 2026-27 with a balance of $938,000. Attachment F and the chart below exhibits the level of reserves that are now being tracked. The fund balance projected to be available in FY 2027-28 in the Measure U Fund will be insufficient to balance that year’s structural deficit and the balance for LEAF will be insufficient to balance the structural deficit in the General Fund and the balance of the structural deficit in the Measure U Fund.

Charges for
Service
$123.4 M…
Taxes
$96.7 M…
Revenues from
Other Agencies
$26.6 M

9.4%
Other Revenue and
Transfers, $25.9 M,

9.1%
Rev. from Use of
Money &
Property
$6.1 M

2.2%
Licenses, Permits &
Fines
$5.6 M

2.0%
FY 2026-27 Sources
Services &
Supplies
$129.2 M

42.6%
Salaries &
Benefits
$128.3 M

42.3% Capital &
Outside
Agencies
$29.9 M

9.8%
Transfers
$12.3 M

4.1%
Debt Service
$3.9 M

1.3%
FY 2026-27 Uses
9 To close the projected budget gap in FY 2026-27, staff proposes drawing on Local Economic Augmentation Fund (LEAF) reserves to the amount of $7.28 million and on undesignated Measure U reserves of $1.47 million. The remaining LEAF reserves at the end of FY 2026-27 are projected to be $938,000, undesignated General Fund Reserve will remain depleted, and undesignated Measure U reserves are projected to be $1.15 million. The projected balance for LEAF is not sufficient to balance the General Fund in FY 2027-28 and the balance projected for Measure U is only sufficient to balance FY 2027-28. Significant reductions will need to be implemented to balance both funds during the FY 2027-28 Mid-Cycle Budget Review process.

The Public Works Department has requested an amendment to the proposed budget to purchase asphalt equipment (asphalt paver trailer, asphalt paver, roller, broom, and traffic safety items) and vehicles (Ford F350 truck and EV truck) with $627,047 of Measure A Funds. This proposed amendment will not have a fiscal impact on the structural deficit of the General Fund or Measure U Fund.

Next Steps:

Any policy direction provided by the City Council during tonight’s budget hearing will be incorporated into the Final Adopted Budget.

Alternative(s)
The City Council may provide staff with further direction to modify the Proposed Budget.

The City Council may provide direction to re-allocate unrestricted funds across City operations. The limitations to re-allocation of funds are set at the fund level where the Enterprise Funds and Special Revenue funds can only be allocated to fund those specific operations or projects.

Fiscal Considerations
There is no fiscal impact associated with the City Council recommendations included in this report. The Proposed Budget totals $303.6 million in all operating funds for FY 2026- 27 and $340.5 million for FY 2027-28. Inclusive of capital, maintenance and equipment projects the Proposed Budget totals $368.0 million for FY 2026-27 and $425.3 million in FY 2027-28. If the City Council approves the Public Works Department requested 10 amendment, the Proposed Budget will total $368.7 million for FY 2026-27 and $425.3 million in FY 2027-28. City Council direction will be incorporated into the Adopted Budget.

The Proposed Budget as presented complies with the City Council adopted financial policies for all funds except for General Fund and Measure U fund. The Proposed Budget for these funds does not comply with the Balanced Budget policy, which requires that ongoing revenues should meet ongoing operating expenditures. The two funds are proposed to draw on fund reserves to cover ongoing operating expenditures.

Based on the City Council’s adoption of the 2026 User Fee Schedule on June 2nd, the Proposed Budget includes the assumption that most Governmental Fees are set to full recovery level for the potential revenue growth of $2.012 million, of which $1.742 million impacts the General Fund. The Proposed Budget assumes balancing the General Fund in FY 2026-27 with a transfer in from the LEAF reserve’s one-time savings of $7.3 million.

Impact to the Community
The City Council’s deliberation on the proposed budget provides the community with an understanding of the structural deficit affecting the General Fund and Measure U resources necessary to maintain and enhance services to the public, as well as limits on resources available to invest in infrastructure and undertake many projects that will directly benefit the community. Adoption of the Final Proposed Budget will allow City staff to provide the services desired by the community.

ATTACHMENTS
A. Resolution
B. City of Santa Maria Proposed FY 2026-28 Biennial Budget C. Proposed Supplemental Budget Requests
D. Budget Document Discussions About Structural Deficit E. Unfunded Road Work
F. Fund Analysis
Attachment A

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

ADOPTING THE BUDGET FOR FISCAL YEARS
2026-2027 AND 2027-2028, AND DELEGATING THE

CITY MANAGER TO IMPLEMENT THE SAME
WHEREAS, the 2026-2028 Proposed Budget of the City of Santa Maria, representing two fiscal year budgets (2026-2027 and 2027-2028), has been submitted to the City Council, has been considered, and is in final form and substance satisfactory to this Council.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

SECTION 1. The budgets for the City of Santa Maria for fiscal years 2026-2027 and 2027-2028, hereby incorporated by reference and fully set forth herein, are hereby adopted in the form on file with the Chief Deputy City Clerk; and SECTION 2. The use of three reserve funds (General Fund, Measure U, and Local Economic Augmentation Fund) may be used in 2026-27 to fund the authorized aforementioned adopted budget; and
SECTION 3. Increase appropriations by $627,047 in the Measure A Fund to purchase asphalt equipment (asphalt paver trailer, asphalt paver, roller, broom, and traffic safety items) and vehicles (Ford F350 truck and EV truck); and SECTION 4. All encumbrances as of June 30th of each year, as represented by outstanding purchase orders and approved capital projects in process, are hereby authorized to be carried forward and appropriated into the next fiscal year budget as determined by the Director of Finance; and
SECTION 5. The City Manager is hereby authorized to process the carry-over of funds from 2025-2026 to 2026-2027 as determined by the Director of Finance in accordance with the City Council adopted financial policies and GASB; and SECTION 6. The City Manager is hereby authorized to make administrative changes to the adopted budget record to reflect the City Council action taken at the Budget Hearing on June 16
th
, if any; and
SECTION 7. The City Manager is authorized to take all necessary actions to implement the provisions of the said budget as adopted on this date, including policy actions referenced in the Council Agenda Report; future adjustments to the budget for unanticipated expenditures offset by revenues; transfers of budget amounts within a Fund, including those which will restore the budget removed for the proposed pool closure when the City Manager identifies additional savings equal to the amount proposed to be cut, which must occur prior to October 31, 2026; and, any other adjustments approved by Attachment A

the City Council before the adoption of this resolution, and approving change order requests for City Council approved projects; and
SECTION 8. The City Manager is also authorized, until otherwise directed, to continue to over- or under-fill classifications by existing classifications when warranted to address operational demands, approve promotional opportunities for employees in established flexibly-staffed positions based on merit and full journey-level experience; continue the performance-based pay program for management employees on employment contracts; entering into side letters of agreement with the employee bargaining groups to address operational issues when warranted; and SECTION 9. The City Manager is authorized to approve the purchase of capital equipment and replacement equipment for the 2026-2028 fiscal years, as delineated in the Capital Improvement Plan, Maintenance, and Equipment Projects section of the 2026- 2028 Budget in conformance with the City’s purchasing guidelines and any applicable State and Federal guidelines; and
SECTION 10. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria on this 16
th day of June 2026.

ATTEST:

Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
Interim City Manager
2026 - 2027
2027 - 2028

FISCAL YEARS

PROPOSED

BIENNIAL
BUDGET

ATTACHMENT B

BIENNIAL
BUDGET

MAYOR PRO TEM
Gloria Flores
District 2

COUNCILMEMBERS
Ricardo Batalla
District 1
Gloria Soto
District 3
Maribel Aguilera
District 4

CITY MANAGER
David W. Rowlands

CITY TREASURER
Teressa Hall

CITY CLERK
Patti Rodriguez

FINANCE DIRECTOR
Rebecca Campbell

BUDGET MANAGER
Rick Kirkwood

DEPARTMENT DIRECTORS
CITY ATTORNEY’S OFFICE
Thomas T. Watson, City Attorney

COMMUNITY DEVELOPMENT
Chenin Dow, Director
FIRE
Bradley Dandridge, Fire Chief

LIBRARY
Dawn Jackson, Library Director
POLICE
Christopher Williams, Police Chief

PUBLIC WORKS
Brett Fulgoni, Director

RECREATION AND PARKS
Ramon Galo, Director

UTILITIES
Shad Springer, Director

CITY OF SANTA MARIA, CA

FISCAL YEARS
2026/27 – 2027/28
MAYOR
Alice Patino
The Government Finance Officers Association of
the United States and Canada (GFOA) presented
a Distinguished Budget Presentation Award to the
City of Santa Maria, California for its Budget
beginning July 1, 2024.

To receive this award, a government unit must
publish a budget document that meets program
criteria as a policy document, as an operations
guide, as a financial plan, and as a
communications device. The City has received 14
consecutive two-year awards beginning in July
1998.

The City of Santa Maria is confident that the City’s
Fiscal Year 2026-2028 Biennial Budget continues to
conform to program requirements. Accordingly,
this budget document will be sent to the GFOA.

The California Society of Municipal Finance Officers (CSMFO) presented an Operating Budget Excellence Award to the City of Santa Maria, California for the City’s Fiscal Year 2024-2025 and 2025- 2026 Budget. The City has received 14 consecutive two-year awards beginning in July 1998. The City of Santa Maria is confident that the City’s Fiscal Year 2026-2028 Biennial Budget will continue to conform to award requirements. Accordingly, this budget document will be sent to the CSMFO.

City of Santa Maria 2026-28 Biennial Budget
Table of Contents
i

TABLE OF CONTENTS
TABLE OF CONTENTS ......................................................................................................................................... I CITY STRUCTURE ................................................................................................................................................1 Government Structure....................................................................................................................................3 Mayor and City Council.................................................................................................................................3 City Boards and Commissions .......................................................................................................................4 City Departments............................................................................................................................................4 City Organizational Chart..............................................................................................................................5 Goals and Objectives for FY 2026-28............................................................................................................6 Linking City Council Goals and Priorities for 2026-27 with Department Goals and Objectives.............8 The City’s Mission.............................................................................................................................................9 Organizational Values....................................................................................................................................9 BUDGET MESSAGE...........................................................................................................................................11 BUDGET RESOLUTION ......................................................................................................................................19 COMMUNITY PROFILE .....................................................................................................................................25 Introduction ...................................................................................................................................................28 Accessibility and Community Mobility .......................................................................................................37 GUIDE TO THE BUDGET ....................................................................................................................................39 Purpose of the Budget .................................................................................................................................41 Budget Process..............................................................................................................................................42 Basis of Budgeting: Accounting Versus Budgetary Basis..........................................................................46 Cost Accounting...........................................................................................................................................47 Financial and Budget Policies.....................................................................................................................48 SIX-YEAR FINANCIAL PLANS FOR GENERAL FUND & MEASURE U & ENTERPRISE FUND OVERVIEWS ...........59 Overview........................................................................................................................................................61 Revenue and Expenditure Forecasting Methodology.............................................................................61 Enterprise Funds.............................................................................................................................................61 General Fund Six-Year Financial Plan.........................................................................................................62 Measure U Fund Six-Year Financial Plan.....................................................................................................67 Water Enterprise Fund Financial Overview................................................................................................69 Wastewater Enterprise Fund Financial Overview......................................................................................71 Solid Waste Collections Enterprise Fund Financial Overview ..................................................................73 Solid Waste Disposal Enterprise Fund Financial Overview .......................................................................75 BUDGET OVERVIEW.........................................................................................................................................77 Overview........................................................................................................................................................79 REVENUE OVERVIEW .......................................................................................................................................93 Revenue Projection Methods......................................................................................................................95 Sources of Operating Revenue...................................................................................................................95 Landscape Services, Mitigation, & Grant Funds.......................................................................................96 Capital Project Funds...................................................................................................................................97 Schedule of Revenues .................................................................................................................................98 EXPENDITURE OVERVIEW ..............................................................................................................................103 Citywide Overview .....................................................................................................................................105 City of Santa Maria 2026-28 Biennial Budget
Table of Contents
ii
Expenditure Categories.............................................................................................................................105 Schedule of Expenditures..........................................................................................................................107 FUND & TRANSFER ANALYSIS........................................................................................................................109 Fund Analysis...............................................................................................................................................111 Transfer Analysis ..........................................................................................................................................115 FUND OVERVIEW...........................................................................................................................................123 Budgetary Fund Balance...........................................................................................................................125 Major Funds .................................................................................................................................................125 Funds Not Budgeted ..................................................................................................................................125 Fund Structure .............................................................................................................................................126 LONG-TERM DEBT OBLIGATIONS .................................................................................................................133 Debt Types and Purpose............................................................................................................................135 CAPITAL IMPROVEMENT PLAN, MAINTENANCE, AND EQUIPMENT PROJECTS ..........................................137 Overview......................................................................................................................................................139 Capital Financial & Budget Policies .........................................................................................................139 CMEP Budget Overview ............................................................................................................................140 Recurring/Nonrecurring Capital Projects.................................................................................................141 Capital Improvement Projects List............................................................................................................141 PERSONNEL ...................................................................................................................................................155 Personnel Overview....................................................................................................................................157 Personnel Detail By Department...............................................................................................................164 Measure U Position Detail By Department...............................................................................................180 DEPARTMENT BUDGET DETAIL.......................................................................................................................185 Overview......................................................................................................................................................187 Public Safety: Police Department.............................................................................................................189 Public Safety: Fire Department .................................................................................................................197 Utilities Department ....................................................................................................................................203 Public Works Department..........................................................................................................................219 Recreation and Parks Department ..........................................................................................................231 Library Department ....................................................................................................................................241 Community Development Department ..................................................................................................247 Mayor & Council.........................................................................................................................................263 City Attorney’s Office.................................................................................................................................265 City Manager’s Office................................................................................................................................269 Department of Finance .............................................................................................................................279 GLOSSARY.....................................................................................................................................................287 Overview......................................................................................................................................................289 Acronyms.....................................................................................................................................................289 Terminology .................................................................................................................................................291 APPENDICES..................................................................................................................................................307 Appendix A: Financial and Budget Policies............................................................................................ A-1 Appendix B: Budgetary Accounting.........................................................................................................B-1 Appendix C: Use of Cost Accounting......................................................................................................C-1 City of Santa Maria 2026-28 Biennial Budget
Table of Contents
iii
Appendix D: Revenue and Expenditure Trends......................................................................................D-1 Appendix E: Appropriation Limit History ....................................................................................................E-1 Appendix F: List of Funds.............................................................................................................................F-1 Appendix G: Description of Funds........................................................................................................... G-1 Appendix H: List of Expenditure Categories............................................................................................H-1 Appendix I: Schematic List of Classes .......................................................................................................J-1 Appendix J: Summary of Employee Compensation and Benefits .........................................................I-1 Appendix K: Financial Status Comparison............................................................................................... K-1 City of Santa Maria 2026-28 Biennial Budget
Table of Contents
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1 CITY STRUCTURE
City of Santa Maria 2026-28 Biennial Budget
This Page Intentionally Left Blank
City of Santa Maria 2026-28 Biennial Budget
City Structure
3 GOVERNMENT STRUCTURE
The City of Santa Maria was incorporated on September 12, 1905, operating under the councilmanager form of government. The City became a Charter City in December 2000, after the voters of Santa Maria approved a ballot measure in November 2000 to change from a General Law City. A Charter City can adopt laws different than the general State laws to meet the specific needs of the city. The operation of a city under a charter is often referred to as “home rule.” Beginning with the November 2018 election, voters participated in the first district-based election when two City Council seats were up for election. Voters may elect City Councilmembers only from those candidates who live in their district. The Mayor will continue to be elected at-large by all voters. In the 2018 election, the contests were in Districts 3 and 4, which are the southwest and southeast portions of the City, respectively. In the November 2020 election, the contests were in Districts 1 and 2, which are the northwest and northeast portions of the City, respectively, and all votes decided the Mayor’s position. In early 2022, the City Council successfully completed the decennial redistricting process. In November 2022, the contests were again held in Districts 3 and 4. In November 2024, the contests were held again in Districts 1 (northwest)and 2 (northeast), with all voters Citywide deciding the Mayor’s position.

The Mayor presides over the Council meetings and serves as the elected and ceremonial head of the City government. The City Council decided to continue its practice of governing with a City-wide perspective and adopted a Resolution for Governance describing how the City Council will continue to serve all the people of the City of Santa Maria. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and City Attorney.

MAYOR AND CITY COUNCIL
Gloria Soto
Councilmember
District 3
Maribel Aguilera
Councilmember
District 4
Alice Patino
Mayor
At-Large
Ricardo Batalla
Councilmember
District 1
Gloria Flores
Councilmember
District 2
CITY OF SANTA MARIA DISTRICTS DISTRICT 2
Gloria Flores
DISTRICT 1
Ricardo Batalla
DISTRICT 3
Gloria Soto
DISTRICT 4
Maribel Aguilera
City of Santa Maria 2026-28 Biennial Budget
City Structure
4 CITY BOARDS AND COMMISSIONS
City boards and commissions play a crucial role in the Santa Maria community. They are responsible for presenting choices that contribute to a smooth functioning City and help shape Santa Maria into the kind of community that the city’s stakeholders want it to be. The boards and commissions may forward matters to the City Council if needed. Usually, the people appointed to these positions are residents of Santa Maria. This is the general rule set by the City Council, except when a specific advisory group doesn’t require it. The Mayor is in charge of selecting members for the official City boards and commissions, and these choices need to be approved by the City Council. The following is a list of current City Boards and Commissions:
• Block Grants Advisory Committee
• Board of Appeals
• CDBG Advisory Committee
• Downtown Revitalization Committee
• Library Board of Trustees
• Measure U Citizens’ Oversight
Committee
• Planning Commission
• Recreation and Parks Commission
• Traffic Committee

CITY DEPARTMENTS
The City Charter and Municipal Code provide the basis for the departmental structure of the City. The Charter establishes that the Offices of the City Attorney and City Manager be appointed by the City Council to manage the affairs of the City. The City Clerk is elected to a four-year term of office and serves primarily in a ceremonial capacity – responsible for administering oaths or affirmations and taking and certifying affidavits pertaining to City business. The City Treasurer is an elected officer identified in Government Code Section 87200 and files statements of economic interests with the City Clerk's office. The City’s Municipal Code establishes the administrative organizational structure of the City under the control and direction of the City Manager. The City’s uses of resources are budgeted in ten departments, including those of City leadership, appointed offices, and the administrative structure.

FULL-SERVICE CITY
The City of Santa Maria is considered a full-service city, meaning that all municipal services are provided by the City, as opposed to being contracted out to third-party providers. Some services commonly contracted out by municipalities include public safety and all utility services; however, these services are provided by the City of Santa Maria as a full-service city.

City of Santa Maria 2026-28 Biennial Budget
City Structure
5 CITY ORGANIZATIONAL CHART
City of Santa Maria 2026-28 Biennial Budget
City Structure
6 GOALS AND OBJECTIVES FOR FY 2026-28
The City Council considers and approves goals and objectives to provide direction on priorities and alignment of goals with the City’s biennial budget. On February 28, 2026, The Mejorando Group facilitated a day-long City Council Goal Setting Workshop to discuss roles and expectations, effective governance, recent accomplishments, community and global trends, culminating in conversations on future vision and strategic priority areas. The following goals reflect what is most important and pressing for our decisionmakers, as they consider community issues and concerns.

GOAL OBJECTIVE DESCRIPTION

ADMINISTRATION
Fiscal Management –
ensure responsible fiscal
and budgeting practices.

1. Balanced budgets.

2. Economic growth.

3. Healthy reserves.

1. Maintain budgets where ongoing
revenues match ongoing expenditures.

2. Create employment opportunities.

3. Keep reserves to cushion against
economic downturns and unexpected
costs.

Optimize Service Delivery. 1. Improved service
quality.

2. Increased
efficiency.

3. Reduced response
times.

1. Establish regular training sessions for staff
to ensure they are equipped with the
skills and knowledge to deliver
exceptional service.

2. Utilitize technology to automate routine
tasks.

3. Streamline communication and
processes to ensure that customer
inquiries are addressed within 24 hours.

Monitor average response times and
aim to reduce by 20% over the next
year.

SAFETY
Public Safety – provide
resources to ensure
effective law enforcement
and fire protection.

1. Community
engagement.

2. Provision of
appropriate
equipment.

3. Promotion of
readiness and
preparedness.

1. Build strong relationships between
police, fire and the community.

2. Invest in state-of-the-art equipment and
programs.

3. Develop and practice emergency
response plans.

Code Compliance –
ensure safety and quality.

1. Ensure safety and
health standards.

2. Engagement and
education.

1. Adhere to building codes, safety
standards, to minimize the risks of
accidents, injuries and fire hazards.

2. Maintain open line of communication
with stakeholders educating them on
the importance of code compliance.

THE BUILT ENVIRONMENT
Well-maintained
infrastructure including
facilities, streets, parks, and
utilities.

1. Continued
investment in
sound
infrastructure.

1. Invest in maintenance of facilities,
streets, parks and utilities.

Recreation and Parks –
create inclusive, engaging,
and supportive recreation
and park spaces for seniors
and youth.

1. Promotion of
physical activity.

2. Improved mental
well-being.

1. Encourage physical activity among
seniors and youth through diverse
recreational facilities, including walking
trails, fitness equipment and sports fields.

City of Santa Maria 2026-28 Biennial Budget
City Structure
7 GOAL OBJECTIVE DESCRIPTION

2. Provide calming environments to
enhance mental well-being, including
spaces for relaxation, quiet areas to
promote reduction of stress.

QUALITY OF LIFE
Recreation and Parks –
provide for seniors and
youth inclusive, engaging,
and supportive
recreational programs.

1. Diverse
recreational
programs.

1. Develop a range of programs tailored to
the interests of seniors and youth.

Housing – affordable
housing, including singlefamily homes.

1. Single-family
homes accessible
to a broader range
of income levels.

2. Availability of
affordable
housing.

3. Community
stability.

1. Reduce barriers to homeownership,
such as downpayment assistance
programs, and education on the
homebuying process.

2. Ensure a sufficient supply of affordable
housing units for low- to moderateincome families.

3. Create stable neighborhoods by
enhancing housing options and
generating positive impacts through
homeownership.

Homelessness – improved
partnerships with local
service providers, focused
on prevention and tailored
solutions to local needs.

1. Increased access
to affordable
housing.

2. Enhanced support
services.

3. Community
collaboration.

1. Expand the availability of affordable
housing units.

2. Work with non-profits, Santa Barbara
County, and other service providers to
improve access to mental health and
substance use treatment centers.

3. Engage governments, non-profits and
community organizations in coordinated
efforts.

ECONOMIC DEVELOPMENT
Economic Development –
an environment where
local businesses can thrive
while drawing in new
investments.

1. Job creation.

2. Workforce
development.

3. Business growth.

4. Investment
attraction.

1. Increase the number of quality jobs
available to residents.

2. Enhance skills and training programs
with local colleges and trade schools to
prepare the workforce for current and
future job markets.

3. Support local businesses through
incentive, resources and programs to
encourage expansion.

4. Create favorable business climate and
programs to attract new businesses.

City of Santa Maria 2026-28 Biennial Budget
City Structure
8 LINKING CITY COUNCIL GOALS AND PRIORITIES FOR 2026-27 WITH DEPARTMENT GOALS AND OBJECTIVES This table links the City Council’s goals and objectives with the departments responsible for carrying them out. See each Department’s section for additional details about its goals and objectives.

CITY COUNCIL GOALS
CITY
ATTORNEY’S
OFFICE
CITY
MANAGER’S
OFFICE

COMMUNITY

DEVELOPMENT FINANCE FIRE LIBRARY POLICE
PUBLIC
WORKS

RECREATION

AND PARKS UTILITIES

ADMINISTRATION
Fiscal Management ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Optimize Service Delivery ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
SAFETY
Public Safety ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Code Compliance ✔ ✔ ✔ ✔ ✔

THE BUILT ENVIRONMENT
Well-maintained infrastructure
including facilities, streets,
parks, and utilities
✔ ✔ ✔ ✔ ✔ ✔
Recreation and Parks ✔ ✔ ✔

QUALITY OF LIFE
Recreation and Parks ✔ ✔ ✔
Housing ✔ ✔ ✔ ✔ ✔
Homelessness ✔ ✔ ✔ ✔ ✔ ✔

ECONOMIC DEVELOPMENT
Economic Development ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
City of Santa Maria 2026-28 Biennial Budget
City Structure
9 THE CITY’S MISSION
The City of Santa Maria is committed to providing the highest quality service in the most efficient, cost-effective, and courteous manner possible.

ORGANIZATIONAL VALUES
TEAMWORK We believe in the value of teamwork and a spirit of cooperative effort from all employee levels within the organization.

SERVICE We are committed to providing excellent service to the public in the most responsive, efficient, and effective manner.

PEOPLE We strive to treat all people with dignity, respect, and fairness. We believe that the employees of the City are our most valuable resource. Each employee's contribution is the key to our success.

COMMUNICATION We believe in simplicity, accuracy, and clarity in communications with the public and each other. We encourage the open exchange of ideas and information among all employees.

INTEGRITY We are dedicated to high ethical and moral standards and uncompromising honesty in our dealing with the public and each other.

FISCAL We are committed to a financially responsible local government, one that is cost conscious and concerned about the effective and efficient delivery of services to the public.

PROFESSIONAL We believe in high professional standards and attitudes which dictate an objective analysis of issues, free of our personal biases.

PROGRESSIVE We value innovation and creativity and support an orientation for change and reasonable risk-taking at all levels of the organization.

RESPONSIVE We strive to be a responsive City organization, dedicated to maintaining a well-trained and competent work force that is in touch with the needs of the community to enhance the quality of life in our city.

City of Santa Maria 2026-28 Biennial Budget
City Structure
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11 BUDGET MESSAGE
City of Santa Maria 2026-28 Biennial Budget
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Budget Message
13 June 2, 2026
Fiscal Years 2026-2028 BUDGET
RECOMMENDATION:

It is recommended that the City Council receive and adopt the Fiscal Years 2026-28 Proposed Budget document for the period July 1, 2026, through June 30, 2028.

INTRODUCTION:

I am grateful for the opportunity to present the City of Santa Maria’s proposed two-year Fiscal Year (FY) 2026-27 and FY 2027-28 budget comprised of $367.4 million for FY 2026-27 and $425.3 million for FY 2027-28, inclusive of a $50.0 million and $108.3 million capital project budget respectively. The development of this budget has been a challenging but important journey that has required commitment, collaboration, and sacrifice across the entire organization.

Over the past two years, the City organization has demonstrated remarkable resilience in responding to significant financial challenges while continuing to provide essential services to our community. From the City Council’s policy leadership to the dedicated employees who serve residents each day, this effort has reflected a shared commitment to responsible stewardship, innovation, and long-term financial sustainability.

I also want to acknowledge the patience, partnership, and trust of our residents throughout this process. The decisions required to address structural financial challenges are never easy, but they are necessary to ensure the City remains financially stable and capable of delivering high-quality public services for years to come.

On June 18, 2024, the City Council adopted two one-year budgets covering the period from July 1, 2024 through June 30, 2026. The FY 2024-25 budget closed a significant $21.3 million structural deficit within the General Fund, including Measure U, through a short-term strategy that relied on the use of one-time reserves and the use of one-time Local Economic Augmentation Fund (LEAF) reserves.

However, the FY 2025-26 budget was adopted as structurally unbalanced due to the anticipated depletion of available General Fund and Measure U reserves. Recognizing the need for a long-term solution, the City Council directed staff to return with strategies to eliminate the ongoing structural deficit and reduce reliance on one-time funding sources.

BUDGET REBALANCING INITIATIVE:

Beginning in mid-2024, departments undertook extensive operational and financial reviews to evaluate potential expenditure reductions, service-level impacts, and revenue enhancement opportunities. These efforts were presented to the City Council through a series of budget workshops and financial updates throughout 2024 and 2025. As part of those efforts, the City implemented a hiring chill policy for General Fund departments (with the exception of police and fire), strengthened expenditure controls, and evaluated vacant and long term persistent vacant positions Citywide.

On February 18, 2025, staff provided the City Council with a financial update as part of the FY 2024-25 Second Quarter Financial Report, and the hiring chill remained. Departments also participated in a comprehensive FY 2025-26 Mid-Cycle Budget Review process that included detailed evaluations of expenditures, revenues, operational needs, and long-term financial sustainability strategies. Through these collaborative efforts, departments identified ongoing savings opportunities by holding positions City of Santa Maria 2026-28 Biennial Budget
Budget Message
14 vacant and not adding new costs while continuing to prioritize core public services and organizational efficiency.

Following the FY 2025-26 Mid-Cycle Budget Review, departments were again tasked with reevaluating operations and identifying additional opportunities to reduce expenditures and enhance revenues within their Net General Fund and Measure U appropriations. Upon review of what Departments identified, amendments were carefully selected that would minimize impacts to the community in order to reduce the FY 2025-26 deficit by $12.5 million (refer to the FY 2025-26 line in the table below).

The table below illustrates that out of the $12.5 million proposed for FY 2025-26, only $8.7 million of longterm reductions contribute toward the structural deficit ongoing, of which $7.6 million was made up of vacant chilled positions.

SUMMARY
Targeted
Timing FTE LS
Revenue Increase
Revenue
Total
Expenditure Reduction
Expenditure
Total Total Impact
OneTime On-going One-Time Ongoing
FY 2025-26 (24.00) (4.80) $ - $1,000,000 $1,000,000 $3,795,098 $7,699,300 $11,494,398 $12,494,398 Ongoing budget amendments implemented in FY 2025-26 reduced the structural deficit by $8.7 million, as follows:
• Decreased regular and part-time salaries and benefits by $3.0 million. This included the reduction of 24.00 FTE positions, comprised of 20 vacant full-time (1.0 FTE) non-safety positions, totaling $2.7 million and 5 vacant part-time (0.8 FTE) non-safety positions, totaling $286 thousand;
• Decreased limited-service salaries and benefits by $657 thousand. This equates to the reduction of approximately 39,000 limited-service hours;
• Decreased salaries and benefits by $3.9 million. This ensures 8 vacant full-time (1.0 FTE) positions in the Fire Department and 10 vacant full-time (1.0 FTE) positions in the Police Department will continue to be held vacant, totaling $1.451 million and $2.487 million, respectively. It is important to note the FTE count will not be reduced;
• Decreases to the operating budget totaling $128 thousand; • Increased revenue for building permits by $1.0 million, which is anticipated to be sustainable; and,
• It is important to note that it is anticipated that the elimination of these positions did not result in any layoffs.

One-time budget reductions implemented in FY 2025-26 included the Fire Department’s cancelation of three projects, totaling $3.795 million funded by Measure U in FY 2024-25, as follows:
• Fire Station 1 Expansion: $3.629 million;
• Parking Lot Maintenance: $159 thousand; and,
• Training Center: $7 thousand.

The budget for these projects were not carried over from FY 2024-25-to-FY 2025-26, thereby resulting in additional one-time fund balance available to balance Measure U in FY 2025-26.

The action on January 20, 2026 will result in the use of less one-time reserves to balance the budget and bring ongoing appropriations more in line with ongoing revenues. The commitment of staff and the City Council to address the structural deficit has brought the City to a point where the structural deficit is being addressed in the General Fund, including Measure U, and striving to achieve long-term financial solvency, which is a big shift from just a few years ago.

Budget Message
15 FY 2026-28 PROPOSED BUDGET:

The FY 2026-28 Proposed Budget reflects the culmination of the efforts of the Budget Rebalancing Initiative and represents a continued commitment toward restoring long-term fiscal stability while maintaining essential services for the community. This is true thanks to the collective effort we have made as a team during the past three years, by making very strategic financial decisions, implementing managed hiring, focusing on critical spending only, and embracing the City Council’s Goals and Objectives. To that end, the proposed budget incorporates additional balancing measures, that include, but are not limited to:
• Citywide reduction of contract/consulting services, training, subscriptions & other operational costs: $1,451,000
• Increase projections for less predictable revenues and newly proposed fees: $1,727,000 • Close Paul Nelson Aquatic Center for 6 months (Dec-May), including unfunding of assigned Limited Service positions: $344,000
• Delete vacant positions and/or reallocate filled positions to other Funds, where justifiable (8.30 FTEs): $1,167,000
• Unfund Limited Service positions in Library, Recreation & Parks, Police and Public Works (impacts programs and operating hours): $446,000
• Eliminate subsidies to United Way, Historical Museum, and Museum of Flight: $70,000 • The proposed budget includes the assumption that most Governmental Fees are set to full recovery level. The table below shows the potential revenue growth of $2.012 million, of which $1.742 million impacts the General Fund. Staff recommend the adoption of the user fees. • The proposed budget includes a recommendation to balance the General Fund in FY 2026-27 with a transfer in from LEAF’s one-time savings of $7.3 million.

We also owe a debt of gratitude to the voters for approving Measure U in November 2018, which extended and enhanced the transactions and use tax at the one-cent rate.Make no mistake – in order to maintain this strong position, the City will need to continue to focus on our financial future while remaining committed to our employees’ well-being and providing quality services.

Looking ahead to the FY 2026-28 Biennial Budget, there are several large items that will affect the size of the structural deficit in FY 2026-27.
• Supplemental Budget Requests: Departments assessed their operational needs and requested the addition, consolidation, or deletion of positions and/or operating budget through Supplemental Budget Requests (SBRs) that have a nexus to support and align with the City Council’s goals. There were 78 SBRs submitted, of which 63 are incorporated into the proposed budget. Some of the SBRs are revenue-backed through the User Fee Study Update, such as the addition of limited-service staff for the Community Development and Police Departments, others are necessary to fund contractual obligations, such as the Animal Services Contract and software maintenance agreements. The fiscal impact for the General Fund and Measure U totals $1.30 million in FY 2026-27 and $1.57 million in FY 2027-28. Other SBRs ensure the budget is sufficient to replace the City’s business equipment, e.g., laptops, computers, etc., and pay for General Liability and Workers’ Compensation insurance premiums and claims. Many of these are highlighted in the Department Budget Detail section.

Personnel costs are the first largest spending category and include salaries, benefits, workers’ compensation insurance, general liability insurance, health insurance, and retirement costs, including the California Public Employees Retirement System Unfunded Accrued Liability (CalPERS UAL). • Compensation Considerations: Factored into compensation will be the terms related to the Memoranda of Understanding (MOUs) for members of the Santa Maria Police Officers’ Association (SMPOA) and Santa Maria City Fire Fighters’ Union Local #2020 (Local 2020).

City of Santa Maria 2026-28 Biennial Budget
Budget Message
16 • CalPERS UAL: The minimum required contribution toward the CalPERS UAL factored into the FY 2025-26 budget totals $17.4 million. The latest actuarial increases the minimum required contribution to $18.4 million, which is an increase of $1.0 million. • Health Insurance: Health Insurance premiums paid by the City on behalf of the employees from the General Fund has increased from $3.67 million in FY 2020-21 to $8.87 million in FY 2026-27. • Workers’ Compensation Insurance Premium: The City allocates the costs of its self-insured workers’ compensation program, commonly referred to as Workers’ Compensation. The amount allocated to the General Fund has increased from $3.44 million for program year 2020- 21 to $6.94 million for program year 2026-27.
2020-21
$5.44M
2021-22
$6.26M
2022-23
$7.24M
2023-24
$7.25M
2024-25
$8.38M
2025-26
$8.95M
2026-27
$10.18M
$0
Historical Costs: PERS UAL for Miscellaneous Plan
($ in millions)
2020-21
$1.22M
2021-22
$1.45M
2022-23
$1.67M
2023-24
$1.61M
2024-25
$1.97M
2025-26
$2.29M
2026-27
$2.62M
$0
Historical Costs: PERS UAL for Fire Plan
($ in millions)
2020-21
$2.76M
2021-22
$3.24M
2022-23
$3.69M
2023-24
$3.62M
2024-25
$4.32M
2025-26
$4.95M
2026-27
$5.64M
$0
Historical Costs: PERS UAL for Police Plan
($ in millions)
2020-21
$3.67M
2021-22
$3.77M
2022-23
$4.59M
2023-24
$5.50M
2024-25
$7.04M
2025-26
$9.03M
2026-27
$8.87M
$0
Historical Costs: Health Insurance Premium
($ in millions)
2020-21
$3.44M
2021-22
$3.40M
2022-23
$6.16M
2023-24
$5.79M
2024-25
$5.90M
2025-26
$8.24M 2026-27
$6.94M
$0
Historical Costs: Workers' Compensation Insurance Premium Budget Message
17 • General Liability Insurance Premium: The City allocates the costs of its self-insured liability program, commonly referred to as General Liability. The amount allocated to the General Fund has increased from $1.70 million for program year 2020-21 to $6.34 million for program year 2026-27.

NEXT STEPS:

While important work remains ahead, this proposed budget positions the City to move forward with a more sustainable financial foundation. It reflects a deliberate effort to align ongoing revenues with expenditures, preserve critical public services, invest strategically in organizational needs, and maintain the flexibility necessary to respond to future economic uncertainty.

The City’s employees have continued to adapt, innovate, and serve with professionalism throughout this process, and their dedication has been instrumental in helping the organization navigate these challenges. Likewise, Department Directors, Deputy Directors, and leaders across the organization have embraced the City Council’s vision for long-term financial sustainability and organizational accountability.

The difficult decisions and collaborative efforts undertaken throughout this budget process have reinforced the importance of prudent financial stewardship, operational efficiency, and thoughtful longterm planning. As the City moves forward, continued discipline, collaboration, and innovation will be essential to responsibly managing taxpayer and ratepayer resources while maintaining the high-quality public services our community relies upon today and for future generations.

As we look ahead, the City of Santa Maria remains committed to fiscal responsibility, operational excellence, and delivering reliable services that meet the evolving needs and expectations of our residents and businesses. Together, these efforts represent an important step toward strengthening Santa Maria’s long-term financial health and organizational resiliency.

This budget represents meaningful progress, but it is not the end of the City’s financial rebalancing efforts.

Continued collaboration, prudent fiscal management, and organizational adaptability will remain essential to achieving lasting structural sustainability and preserving the services our community depends upon.

The years of thoughtful work and shared sacrifice reflected in this budget have positioned the City to continue building a high-performing organization that attracts and retains engaged public servants while delivering exceptional public services and civic infrastructure. With continued focus and responsible leadership, the City is well positioned to strengthen its role as an extraordinary place to live and work, a regional hub for innovation and opportunity, and a community recognized for educational advancement, workforce development, entrepreneurship, and economic vitality.

For our residents, students, businesses, and future generations, the best of Santa Maria’s future still lies ahead.

David W. Rowlands
City Manager
2020-21
$1.70M
2021-22
$1.93M
2022-23
$3.78M
2023-24
$3.88M
2024-25
$4.20M
2025-26
$6.35M
2026-27
$6.34M
$0
Historical Costs: General Liability Insurance Premium
($ in millions)
City of Santa Maria 2026-28 Biennial Budget
18 Budget Message
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19 BUDGET RESOLUTION
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25 COMMUNITY PROFILE
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City of Santa Maria 2026-28 Biennial Budget
Community Profile
27 More than 150,000 people a year attend the
Santa Barbara County Fair held in Santa Maria.

The popular Strawberry Festival also is hosted at
the Santa Maria Valley Fairpark.

The Santa Maria Valley is rich in agriculture and
home to some of the ripest, juiciest, largest
strawberries in the country. Farmers grow multiple
varieties and harvest more than 7,500 acres
annually.

Currently there are more than 2,600 housing units
with pending or approved discretionary
entitlements.
“Downtown Fridays” draws more than 1,500
people each week for entertainment and food.

The event, now in its ninth year, is a partnership
among the City and local organizers, to stimulate
the community’s downtown core.

Tens of thousands of travelers per day along
Highway 101 are welcomed by this sign. Santa
Maria has long been a regional shopping center,
and continues to attract more companies due to
its business-friendly approach.

Before Sunset Magazine named our valley’s
classic feast the “best barbecue in the world”, the
California Visitor’s Guide dubbed our famous
Santa Maria Style Barbecue “the number one
food not to miss while visiting California.

City of Santa Maria 2026-28 Biennial Budget
Community Profile
28 INTRODUCTION
The City of Santa
Maria is located on
the west coast of
California in Santa
Barbara County in
what is known as the
Central Coast. Santa
Maria is the largest
City by population
and geographic area
in the County (23.2
square miles).

DEMOGRAPHICS
A city is defined by its assets, the most important
one being the people that populate it and
work within its boundaries. The City has carefully
planned for growth, while preserving local
history, being cognizant of both its past and the
modern future.

CITY POPULATION
The City’s population reached 113,041 as of
January 1, 2026, according to the State
Department of Finance (DOF), making it the
61st largest city by population of 482
municipalities in California. Nearly 26 percent of
all residents within Santa Barbara County live in
Santa Maria. From 2000 to 2024, the number of
City residents identifying as Hispanic increased
from 51.3 percent to about 79.1 percent. The
percentage of residents who speak a
language other than English at home is 67.1
percent as of 2024 according to the Census.

City population growth by decade, according
to the Census and State:
32,749
39,685
77,423
99,553
109,707
113,041
1970
1980
1990
2010
2020
2026
Hispanic or Latino

79.1%
Not Hispanic or Latino

20.9%
* Source: United States Census Bureau, 2024 American Community Survey 5-Year Estimate Largest City
in California
61st
293rd Largest City
in the US

23.4 113,041
Population
(Estimated 2026)
Source: California
Department of Finance

7.3%
Unemployment Rate
(April 2024)
City of Santa Maria 2026-28 Biennial Budget
Community Profile
29 BUSINESS TYPES AND RETAIL SALES
Santa Maria is an important retail center on the Central Coast. The City Council in early 2016 approved formation of a tourism business improvement district, assessing a two percent fee on each overnight stay in a Santa Maria motel or hotel room. Funding is fueling a marketing push into new markets. More guests staying overnight, eating at more restaurants, visiting wineries, using gas stations, and shopping at local stores will boost sales tax revenue for the City.

SANTA MARIA’S TOP 25 SALES TAX PRODUCERS
(alphabetical order)
Cal Coast Machinery
California Electric Supply
Community Volkswagen BMW Of Santa Maria
Conserv Fuel
Costco
Crop Production Services
Famcon Pipe & Supply
Foods Co
Hayward Lumber
Home Depot
Home Motors Chevrolet & Cadillac
Honda of Santa Maria
JB Dewar
Kia Santa Maria
Lowes
Quinn CAT Company
Ross
Santa Maria Dodge Chrysler
Santa Maria Ford
Santa Maria Nissan Mazda
Stowasser Buick GMC
Target
Toyota of Santa Maria
Trojan Petroleum
Walmart
Source: HdL Companies (City of Santa Maria’ sales tax consulting firm), Year 2025, Calendar Quarter 4 Autos &
Transportation
16%
Building &
Construction
9%
Business &
Industry
12%
Food & Drugs
4%
Fuel & Service
Stations
7%
General
Consumer
Goods
22%
Restaurants
& Hotels
9%
State and
County Pools
21%
Sales Tax Allocation by
Major Industry Groups
Source: HdL Companies (City of Santa Maria’s sales tax consulting firm), Year 2025, Calendar Quarter 4 Santa Maria’s Top 10 Sales
Tax Producing Business
Types
• New Motor Vehicle Dealers
• Discount Department Stores
• Building Materials
• Service Stations
• Quick-Service Restaurants
• Garden/Agricultural Supplies
• Warehouse / Farm /
Construction Equipment
• Casual Dining
• Petroleum Products /
Equipment
• Plumbing / Electrical Supplies
City of Santa Maria 2026-28 Biennial Budget
Community Profile
30 Composition of Population:

City State
Male 49.8% 49.9%
Female 50.2% 50.1%
Median Age 29.3 37.9
Avg. Household
Size

3.70 2.84
Owner-Occupied 50.2% 55.9%
Renter-Occupied 49.8% 44.1%

ECONOMICS
Top Employers:
1,000+ Employees:
• Allan Hancock College
• County of Santa Barbara
• Marian Regional Medical Center/Dignity
Health
• Santa Maria-Bonita School District
500+ Employees:
• City of Santa Maria
• Community Health Centers
• Santa Maria Joint Union High School District
• Windset Farms
* Although located outside the City limits,
Vandenberg Space Force Base (4,300
employees and contractors) and the Diablo
Canyon Power Plant (1,500 employees and
contractors) are near the City and are a major
source of local employment and local
purchasing.

COMPARISONS TO OTHER COMMUNITIES/STATE
Estimated Median Household Income:

Santa Maria.............................................$84,746 Santa Barbara.......................................$106,182 Lompoc ...................................................$72,004 California .................................................$99,122

HOUSING
Santa Maria has approximately 31,801 housing
units, of which 68.1 percent (21,656) are singleunit structures, 28.8 percent (9,159) are multiunit structures, and 986 are mobile homes.

Overall, there is an estimated 4.2 percent
vacancy rate.

PUBLIC SCHOOLS
Institution Enrollment:

Santa Maria-Bonita School District (K-8) ........ 17,408 Allan Hancock College................................... 46,489 Santa Maria Joint Union High School District... 8,930

LOCAL HOSPITAL
Marian Regional Medical Center

LEGISLATIVE DISTRICTS
• State Senate District 19
• State Assembly District 35
• Congressional District 24
• Santa Barbara County Supervisorial Districts
4 and 5

ZIP CODES
• 93454-93458

AREA CODES
• 805 and 820

WEATHER
14” of annual rainfall. Average high is 68.6
degrees; record low 20 degrees in 1978; record
high 110 degrees in 2008.

CITY GOVERNMENT
The City of Santa Maria was incorporated on September 12, 1905. The City became a Charter City in December 2000, after the voters of Santa Maria approved a ballot measure in November 2000 to change from a General Law City to a Charter City. A Charter City can adopt laws, different than the general State laws, to meet the specific needs of the city. The operation of a city under a charter is often referred to as “home rule.”
The City operates under the council-manager form of government. Starting in November 2018, Councilmembers are elected by-district for four-year, overlapping terms of office. The Mayor is separately elected at-large by a popular vote, for a four-year term.

CITY HISTORY
The community’s roots are traced back to the days of the California missions. After Mission San Luis Obispo was established in 1772 and Mission La Purisima (in what is now Lompoc) in 1787, settlers were attracted to the Santa Maria Valley. In 1821, when Spain granted Mexico its independence, mission lands were made available for private ownership. In 1874, four of the valley’s prominent settlers, Rudolph Cook, John Thornburg, Isaac Fesler, and Isaac Miller, each donated land where their City of Santa Maria 2026-28 Biennial Budget
Community Profile
31 properties met to form a city centered on Main Street and Broadway. The townsite map was recorded in Santa Barbara in 1875.

The community was not always known as Santa Maria. The town was originally known as Grangerville – for a Grange co-operative store started by Thornburg. Later, it took on a new name, Central City, because the town lay between Guadalupe and Sisquoc. But the name Central City, California, kept getting confused with Central City, Colorado. Mail intended for Central City, California, was being sent to the Colorado community of the same name. Thornburg reportedly came up with the name Santa Maria from the name that settler Juan Pacifico Ontiveros had given to his property 25 years earlier.

Ontiveros and his wife had arrived in the area in 1855 and built a palatial adobe (a home built of clay and straw bricks) at the mouth of a local canyon and called their home Santa Maria. The home was finished in 1858. Ontiveros already named the nearby waterway “Santa Maria Creek,” until it rained for 30 days and 30 nights in 1861-1862, and then he referred to it as a river. This waterway is known today as the Santa Maria River.

HERITAGE
The change of name from Central City to Santa Maria was noted in the first issue of the Santa Maria Times on April 22, 1882.

The Santa Maria Valley saw oil exploration begin in 1888, leading to large-scale discoveries around the turn of the century. In 1901, William Orcutt urged his company (Union Oil) to move forward by leasing more than 70,000 acres
within a year. Soon, Union Oil and a number of smaller
companies were pumping for oil. By the end of 1903, Union Oil, the major player in the region, had 22 wells in
production. Several significant discoveries followed,
including the Orcutt and Cat Canyon fields in 1904 and
1908, respectively. Union Oil's Hartnell Well No. 1 (known as Old Maude) struck a large oil-bearing reservoir in the Orcutt field in late 1904 and reportedly produced one million
barrels of oil in its first 100 days of operation. Oil
development intensified in the 1930s, spurring the City's growth even further. By 1957, there were 1,775 oil wells in operation in the Santa Maria Valley, producing more than $64 million worth of oil.

In 1905, faced with the need to provide local governance to the rapidly growing population attracted to the valley, due to the discovery of oil, Santa Maria was incorporated as a general law city. That same year, Union Sugar built the valley’s first major industrial plant in Betteravia. Acres of sugar beets were grown, and sugar cane and beets were imported from inland California and other American and foreign fields. A cattle feeding yard was developed to dispose of waste from the sugar plant.

Soon after the incorporation, people began talking about the possibility of a library and in 1907 the City appointed a Board. Because the Carnegie Library Foundation was giving money for buildings in order to encourage the use of libraries, the Board applied for a grant in the amount of $10,000. The women of the Minerva Club received their wish for a new library. After consideration of various locations, Mr. Paul O. Tietzen generously donated a plot of land and philanthropist Andrew Carnegie kept his promise. A beautiful Carnegie Library opened in May 1909, initially with 600 volumes.

Oil production in the valley is more than a
century old.

City of Santa Maria 2026-28 Biennial Budget
Community Profile
32 In 1908, an electric streetcar provided service to the northwest part of the City. Three years later, the Santa Maria Valley Railroad was constructed by an oil syndicate. Before World War II, Santa Maria Valley Railroad and Pacific Coast Railway trains connected areas east and south of Santa Maria to the Southern Pacific line at Guadalupe. An ice plant at Miller supplied ice for the refrigerator cars, which carried vegetables and other produce. The Santa Maria Valley Railroad was incorporated in 1911 and in 1915 was sold to Captain G. Allan Hancock. Today, the railroad has 14 miles of mainline track and serves freight customers in the Santa Maria Valley, linking with the Union Pacific Railroad at Guadalupe.

Frank McCoy came to work for the new Union
Sugar plant. Immediately he saw that the City,
located midway between Los Angeles and
San Francisco, had no comfortable hotel
accommodations. When he retired in 1915, he
bought a lot eight blocks south of the center of
the town and built the Santa Maria Inn. With its
beautiful flower gardens, the Inn became a
popular stopping-place for important travelers
from all over the world. With the addition of the
six-floor tower in 1984, it now provides 166
rooms and suites.

In 1919, a two-story 13-room home built by
Robert Martin on South Broadway was sold to
a group of businessmen and later became the
Santa Maria Club. This private men’s club
served as the political and social center of the
valley for many years. The members built a
huge barbecue pit and developed the famous “Santa Maria Style Barbecue.” Later, the building became the Landmark Restaurant and Lounge, and barbecue duties were assumed by the Elks Lodge.

In 1928, Hancock Field, Santa Maria’s first airport, was opened on the east side of town. Captain Hancock was president of Santa Maria Airlines and founded the College of Aeronautics at that field.

Later Allan Hancock College was built on the site of Hancock Field. Today, the college offers more than 2,600 courses in over 100 fields of study via 14 academic departments and is a major focal point in the community with an economic impact of over $250 million annually. A $180 million bond, Measure I, passed by voters in June 2006, enabled the College to modernize technology, upgrade infrastructure, and build new teaching and learning spaces. in the college has built a new Industrial Technology/Physical Education and Athletic Fields Complex, Public Safety Training Complex, Childhood Center addition, Community Education building, a Student Services building, a Fine Arts Complex, and more.

Santa Maria City Hall was dedicated in 1934. Initially, the building also had room for the Police Department and Chamber of Commerce. The building received designation as a City landmark in 1985.

In the mid-1970s, the Santa Maria Town Center West (the Mall) was added to the City's downtown, creating 400,000 square-feet of enclosed retail shopping. The Mall was expanded in the late 1980s and early 1990s.

On June 20, 1998, Santa Maria was selected as one of 10 cities Nationwide, to receive the coveted All-America City designation. The program promotes the collaboration of individuals, businesses, local government, non-profit organizations and the citizenry in the identification and solutions of problems.

The Carnegie Library
Paying homage to the past: a classic wooden
caboose, a Sacramento Northern Railroad boxcar,
and Union Sugar No. 1 steam locomotive were installed
in November 2011 as an exhibit near the Transit Center.

City of Santa Maria 2026-28 Biennial Budget
Community Profile
33 In 1999, the commercial area along Bradley Road expanded and the Crossroads Shopping Center opened at Betteravia Road and Highway 101. This shopping center is home to national retailers and several automotive dealerships. The City has continued to add major "destination" retail outlets to its existing retail offerings.

The Public Library is one of the jewels of
downtown. Following four expansions, the
new Main Public Library opened in August
2008 to rave reviews. Patrons enjoy the
expanded book collections, public
computers, the Children's Theater, the
Central Coast Literacy Center, study rooms
and a Library Shop. Shepard Hall serves as
the community meeting room, and new art
exhibits from local and regional artists are
put on display. Nearby is the Abel
Maldonado Community Youth Center.

Agriculture has always been significant to
Santa
Maria.

Many modern farms have been in the same family for generations, and about one in every five local jobs is tied to agriculture. Santa Maria Valley farms and ranches made a huge contribution to Santa Barbara County’s gross crop production value of over $1.9 billion in 2022. Strawberries, broccoli, cauliflower, lettuce and celery are grown in the valley. The annual strawberry crop is valued at more than $800 million. In 2011, Canada-based Windset Farms opened its state-of-the-art, multimillion-dollar greenhouse and processing operation to grow tomatoes and expanded in 2015. The campus occupies four 32-acre greenhouses, one 5-acre greenhouse, a processing plant and other facilities, and is seeking to expand.

Every year, the Santa Maria Elks Rodeo is a three- to four-day event made possible by more than 1,300 volunteers who work on numerous committees. The result is the annual parade on Broadway (State Highway 135), the rodeo, a rodeo queen
contest, beard-a-reno contest, a mini rodeo, concerts, dances, barbeques, banquets, and much more.

THE CITY’S PRESENT AND FUTURE
Santa Maria has a diverse economy based on agriculture, commercial, and manufacturing, in addition to education, health care, tourism, oil production and government. In recent years, the City has experienced positive trends in most economic segments led by consumer spending, construction spending, and increased property values. Construction activity has increased significantly. Downtown Fridays, in its eleventh year as of 2026, draws thousands of people downtown to shop and find live entertainment.

The City Council in early 2016 approved formation of a tourism business improvement district, assessing a two percent fee on each overnight stay in a Santa Maria motel or hotel room. Funding is fueling a marketing push into new markets. More guests staying overnight, eating at restaurants, visiting wineries, using gas stations, and shopping at local stores will boost sales tax revenue for the City.

In 2026, residential, commercial, and industrial construction continues throughout the City. The demand for housing is constant. The City is working toward meeting its most recent State-mandated Regional Housing Needs Allocation of planning for 5,418 new units between 2023 and 2031.

Held annually in June, the Santa
Maria Elks Rodeo celebrates
Santa Maria’s heritage.

Abel Maldonado Community Youth Center
City of Santa Maria 2026-28 Biennial Budget
Community Profile
34 Two of the newest apartment complexes recently completed are the Centennial Square Apartment project at the southwest corner of Miller Street and Plaza Drive which includes 184 affordable apartments and the Centennial Gardens along West Battles Road, offering 160 affordable apartments in nine buildings. Also new is Santa Maria Seniors near Santa Maria Way and Miller, with 160 affordable efficiency apartments for seniors. Lakeview Estates (Elements Apartments) at Highway 135 (Broadway) and Skyway brings 152 apartments and 9,800 square feet of commercial space. The Avante Apartments at Carmen Lane and Blosser Road will bring 86 apartments. This is just a partial list. The largest new neighborhood to receive City approval is Blosser Ranch, set for about 1,485 housing units on 145 acres at the southeast corner of Stowell Road and Blosser Road. The City has purchased 19 acres for a sports complex and the project is progressing. .

Revitalizing the historic downtown core remains a priority with projects continuing to be developed and moving forward towards City approval. The City has continued working with a developer, the Vernon Group, on the planning and construction of several multi-story mixed-use residential and commercial buildings located on underutilized City owned parking lots in the area of the intersection of Broadway and Main Street. The first of these projects, Alvin Newton Apartments (Lot 3), was approved by the City Council In 2023. This project is located at the southeast corner of Main Street and Broadway and is a 6-story, 75,340-square-foot mixed-use building with 5,760-square-feet of ground floor commercial, 82 apartment units, a rooftop deck, outdoor plazas, parking, and a firefighters' memorial. Future developments are proposed on the Perlman Park site located on the northeast corner of Main Street and Broadway (Lot 2), the northerly parking lot adjacent to the old Fallas/Mervyn’s building, and the parking lot east of the Ruffoni building adjacent to Lincoln (Lot 4).

The Heritage Walk Lofts project redevelops the former Mervyn’s/Fallas building into 102 apartment units, with an estimated project completion of June 2027, and the Alvin Newton Apartments are currently in the building plan review stage with the City, with an estimated project completion by January 2028
The Downtown attractions include the Santa Maria Town Center with the Regal Edwards movie theatre and the civic center at the Public Library. Future planning efforts will continue to focus on developing a pedestrian friendly city center with outdoor gathering spaces and plazas, pedestrian connections, and entertainment opportunities.

City of Santa Maria 2026-28 Biennial Budget
Community Profile
35 TIMELINE
1856 Juan Pacifico Ontiveros and his wife,
Maria Martina Osuna, purchase Rancho
Tepusquet. Arriving on the “Feast of
Mary,” They name their ranch “Santa
Maria” and build an adobe.
1959 Santa Maria River Levee is built by
Army Corps of Engineers (1959-1963)
to deter continuous flooding from
upstream watersheds.
1874 Rudolph Cook, John Thornburg, Isaac
Fesler, and Isaac Miller donate land to
form a town called Grangerville, later
renamed Central City.
1975 Santa Maria Town Center East Mall
opens with a three-level parking
structure. It becomes the first major
indoor shopping center on the Central
Coast.
1882 Central City was later renamed Santa
Maria.

The Pacific Coast Railway arrives,
connecting Santa Maria to Port Hartford
(now Port San Luis).
1998 As one of only 10 cities in the nation
annually, Santa Maria received the AllAmerica City designation from the National Civic League.
1905 The City of Santa Maria is born on
September 12, 1905. The vote is 202
votes for and 139 against incorporation.
2006 With 89,917 residents, Santa Maria
becomes the most populous city in
Santa Barbara County for the first time.
1911 Santa Maria Valley Railroad
incorporated, providing rail freight and
commerce to the valley.
2008 The 60,000-square-foot new Main
Public Library opens in August to a
crowd of over 10,000 on the first day
and quickly becomes the jewel of the
Central Coast.
1925 Captain Allan G. Hancock establishes
the Santa Maria Valley Railroad and
Hancock College of Aeronautics (now
Allan Hancock College).

Santa Maria High School opens.
2020 The A.T. Still University of Health
Sciences opened its satellite campus
in Santa Maria with its first cohort of
students.
1934 Dedication of the new City Hall. In its
early days, the building housed the City
Judge, Department of Motor Vehicles
and Chamber of Commerce.
2023 The City opens Machado Plaza at
North Pine Street and West Chapel.

Local teens helped make a colorful mural depicting
Santa Maria’s history.

Dia de Los Muertos is a popular November event.

City of Santa Maria 2026-28 Biennial Budget
Community Profile
36 LITTLE KNOWN FACTS ABOUT THE SANTA MARIA VALLEY
• The Legend of Zorro was based on the life of Solomon Pico, a murderous bandit who camped in the Santa Maria hills.
• From 1962-1963, John Madden was the head coach of Santa Maria’s Allan Hancock College football team.
• The Historic Santa Maria Inn (opened May 1917) was a favorite of William Randolph Hearst (American newspaper magnate) and his friends, who often stayed at the Inn on journeys to Hearst Castle in San Luis Obispo County. Marilyn Monroe, Clark Gable, Shirley Temple, Jimmy Stewart, and Rudolph Valentino were among the Inn’s notable guests during the “Golden Years” in Hollywood.
• In 1904, Old Maude, Santa Maria’s first oil well, produced 1,000,000 barrels of oil in its first 100 days of operation.
• The Guadalupe-Nipomo Dunes Complex just west of Santa Maria boasts the highest beach dunes in the western United States, with some towering 500 feet. The 1923 Cecil B. DeMille’s silent movie, “The Ten Commandments,” was filmed in the Guadalupe-Nipomo Dunes Preserve.

Due to weather and wind, the set was gradually buried beneath the sand. • In 1978, the Santa Maria Valley Chamber of Commerce copyrighted the Santa Maria Style Barbecue recipe to protect the genuine article.
• The Minerva Clubhouse, located in Santa Maria, was designed in 1927 by Julia Morgan, famed architect of Hearst Castle, a State park approximately 50 miles north of Santa Maria. • The Santa Maria Public Airport stands at the site of a U.S. Army Air Field used during World War II.

The 1963 Allan Hancock College Bulldog coaching staff, from left to right: End Coach Jim Wood, Head Coach John Madden, Defense Coach Dick Mannini, Backfield Coach Ernie Zampese.

Photo courtesy of Allan Hancock College.

City of Santa Maria 2026-28 Biennial Budget
Community Profile
37 ACCESSIBILITY AND COMMUNITY MOBILITY
The City operates Santa Maria Regional Transit (local bus service), the Breeze (intra-City service), and ADA Paratransit. The Transit Center is at 400 Boone Street. Greyhound serves the area. The Santa Maria Public Airport, with two runways, provides commercial flights and is home to over 200 general aviation aircraft. Amtrak provides local bus service to its rail service.

Highways serving the area:
• U.S. Highway 101
• State Route 135
• State Route 166

TRANSPORTATION NETWORK
The City recognizes the importance of having a robust transportation network to serve the needs of the community and shape it in positive ways, as well as providing alternatives to the private automobile to reach destinations within Santa Maria and the region. The Santa Maria Circulation Element of the General Plan evaluates the transportation needs of the City and presents a comprehensive transportation plan to accommodate those needs. The intent of the Circulation Element is to guide the orderly improvement of the circulation system in direct response to the Land Use Element of the General Plan. The original Circulation Element was adopted by the City Council on April 17, 1979. The text was reformatted in April 1987 and incorporates amendments made through September 6, 2011.

Regional access to the City of Santa Maria is provided by the U.S. 101 Freeway. This highway provides the City with good access to neighboring population centers. The major existing north-south streets serving Santa Maria are Broadway, Blosser/Skyway, and Miller. Broadway is designated State Route 135 and connects the Santa Maria/Orcutt urban areas. The major east-west streets serving Santa Maria are Donovan Road, Alvin Avenue, Main Street, Stowell Road, Battles Road, McCoy Lane, and Betteravia Road. Main Street is designated State Route 166, west of U.S. 101, and connects Santa Maria to Guadalupe to the west and unincorporated areas of Santa Barbara County to the east. Main Street also has an interchange with U.S. 101.

SANTA MARIA REGIONAL TRANSIT
The Santa Maria Regional Transit (SMRT) system provides local and regional public transportation services, as mandated under State and Federal regulations, for the transit needs of the Santa Maria urban area. SMRT returned to full service in August 2021, after 14 months of reduced service due to the pandemic. SMRT then provided free rides to vaccination locations.

IMPROVED LOCAL TRANSIT
SMRT introduced important service changes as of January 2, 2022. The route and schedule changes include improved connections and more direct service to popular destinations. Routes were retimed to facilitate transfers and improve reliability, and most now operate on a 45-minute frequency.

This offers more services where they are needed, shortens the length of some routes, and provides improved access to the high schools.

AIRPORTS OFFERING PASSENGER AND CARGO SERVICE
The Santa Maria Public Airport encompasses approximately 2,598 acres, including two active runways.

The airport provides facilities for one airline (Allegiant) and serves as home base for over 200 general aviation aircraft. The Fire Department provides, under contract, Aircraft Rescue and Fire Fighting and airport inspection services to the Santa Maria Public Airport.

City of Santa Maria 2026-28 Biennial Budget
Community Profile
38 Located just 27 miles north of Santa Maria, San Luis Obispo County Regional Airport (SBP) provides passenger service to cities all over the world, as well as highly accessible cargo service. Commuter services are also available at the airport. Service is provided by Allegiant Airlines through their respective regional partners. In addition, within approximately one hour’s drive of the City is the Santa Barbara Municipal Airport.
39 GUIDE TO THE BUDGET
City of Santa Maria 2026-28 Biennial Budget
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City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
41 PURPOSE OF THE BUDGET
The budget process furnishes departments with an opportunity to justify departmental work programs, to propose changes in services, and to recommend revisions in organizational structure and work methods. It also enables the City Manager to review these aspects and make appropriate recommendations to the City Council. The City budget sets forth a strategic resource allocation plan that addresses the City Council’s Priorities. The Budget is a policy document, financial plan, operations guide, and communication device all in one. Through the budget document, the City demonstrates its accountability to its residents, customers, and the community-at-large.

Presentation of the budget to the City Council provides an opportunity to explain municipal programs and organizational structures. It also allows the Council to judge the adequacy of the proposed operating programs, to determine basic organizational and personnel staffing patterns, and to establish the level of municipal services to be provided with the available resources. In order to accomplish these objectives, the budget must combine an explanation of anticipated financial resources for the ensuing fiscal year with proposed expenditures, supported by sufficient information on the proposed programs and activities to assess the appropriateness of the recommended levels of services.

The City’s Budget accomplishes the following:
• Determines the quality and quantity of City programs and services; • Details expenditure requirements and the estimated revenue available to meet these requirements;
• Connects the activities of individual City Departments to the City Council’s Priorities; • Sets targets and provides a means of measuring actual accomplishments against goals; and • Serves as a communication device that promotes the City’s vision and direction, fiscal health and vitality, and what the public is getting for its tax dollars.

This document reflects the City’s continued use of a two-year financial plan, which emphasizes longrange planning and effective program management. The benefits of a two-year plan include:
• Ability to maintain long-range planning efforts;
• Ability to focus on developing and budgeting for significant objectives; • Encourage more orderly spending patterns;
• Ability to set realistic schedules for completing program objectives; and, • Save time and resources allocated to preparing annual budgets.

This document represents a proposal for the City’s two-year budget, covering the period of July 1, 2026 through June 30, 2028. As in the past, staff concentrated on the first year of the two-year budget (2026- 27). The second year of the two-year budget has been developed from the first year’s funding and revenue levels.

This budget is adopted as “two one-year budgets”. Amendments to this document may be necessary, at the end of 2026-27, depending on economic circumstances, and will be addressed during the MidCycle Budget Review in June 2027. For that reason, the budget summary schedules, financial tables, and graphic presentations in this document only show proposals for 2026-27 budget year. In 2026-28, each department and budget unit that is adopted is shown in the Department Budget Detail section.

Additionally, the budget provides the legal authority for expenditures and a means for control of municipal operations throughout the fiscal year. Accordingly, the City Charter mandates that a budget be adopted prior to the beginning of the fiscal year.

City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
42 THE OPERATING BUDGET, CAPITAL BUDGET, AND CAPITAL IMPROVEMENT PROGRAM The budget document contains information about both the City’s operating and capital budgets. The operating budget details the funding for the day-to-day operations and obligations of the City for a specific fiscal year such as personnel costs, vendors and contractors, utilities, building maintenance, and debt payments. The capital budget details planned expenditures for the same fiscal year to construct, maintain, or improve City facilities such as fire and police stations, libraries, parks, recreation centers, streets, sewers, and water infrastructure.

Capital projects range from road maintenance or construction to the renovation of municipal buildings, recreation centers and ball fields, and water main and sewerage system replacement. The Summary of Capital and Maintenance Projects provided in the Capital Improvement Program Overview section of this budget, beginning on page 133 relates capital project needs to the financial sources that will support their realization and the timeframe in which both the financing and work will take place. Often spanning multiple years, capital improvement projects typically carry considerable future impact. They are often financed over a longer period, in effect spreading the cost of the project over generations of beneficiaries; however, the first two years are integrally related to the Biennial Budget.

Certain projects for which funding is not yet secure or planning is not complete are budgeted during the fiscal year through supplemental appropriations. Additionally, debt-financed projects are typically reflected twice in the Biennial Budget as an original capital expenditure from the proceeds of the debt and as payments of principal and interest over several years. For example, in 2012, the City issued debt to finance the construction of a transmission line to take delivery of State Water, the purchase of an additional 4,900 acre-feet of entitlement, and to acquire and construct certain water and wastewater facilities. The capital expenditure for the project was budgeted in the applicable fiscal years, as well as debt obligations which are still shown in the budget each year until fully paid off.

BUDGET PROCESS
The following describes the process used to develop the Biennial Budget. The City operates under a biennial budget spanning two fiscal years (a fiscal year is July 1 through June 30). The budget document consists of two one-year budgets.

Preparation of the two-year budget is a forward-view policy document, identifying proposed service levels given funding constraints and competing demands. The City’s budget is one of the most significant policy documents for consideration by the City Council. The budget process is driven by the policies, programs, and objectives of the City Council, which are financed by revenues received by the City.

The budget preparation process begins, in earnest, at the staff level around the January-February timeframe when the Department of Finance develops preliminary revenue forecasts based on the most recent revenue data. After these preliminary revenue forecasts are developed, budget instructions are distributed to City departments to compile the departments’ proposed budgets. The budget instructions explain the financial plan, budget calendar, and materials included with the instructions, as well as required budget forms to be completed by each operating department. This year the instructions explained operating budget requests, supplemental budget requests, and all capital/maintenance/equipment project requests. Each department is provided the historical budget information of salaries and benefits, services and supplies, and revenues.

Budget instructions were distributed to departments in mid-January 2026. Each department was requested to develop a proposed budget, using as a base the existing budget amounts from the adopted Mid-Cycle 2025-26 Budget. Workers’ compensation and liability insurance premiums were directly allocated to department budgets to display a more complete picture of department costs and to provide increased transparency to facilitate cost management going forward.

This year, as in 2014, 2016, 2018, 2020, 2022 and 2024, staff engaged the services of an outside facilitator to assist the City Council in establishing overall City-wide priorities and goals for the 2026-28 fiscal years.

A one-day Goal Setting Exercise was held as a special, public City Council workshop on February 28.

City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
43 On May 5, 2026, the City Council received a presentation from City staff on the proposed City-wide goals and took action to adopt the goals via a Resolution. After approval, the Budget Review Team then guided each department to ensure their submitted 2026-28 budgets contained a nexus to the overall City-wide goals, for review by the Budget Review Team.

The Budget Review Team was led by the City Manager, Assistant City Manager, Director of Finance, Chief Human Resources Officer, and Budget Manager, who, with budget support staff, met with each department to review their respective budget submittals. The Budget Review Team validated the revenue assumptions, reduced operating expenses, assessed capital and maintenance requests, and identified warranted personnel changes. The Budget Review Team then met and discussed budget submittals and reviewed operating, capital, and personnel recommendations. Once all requests were reviewed, the City Manager provided the Budget Review Team with direction on items for inclusion in the recommended budget. The Department of Finance, with the assistance of staff from the City Manager's Office, then commenced the extensive and laborious process of integrating and compiling the budget document for presentation to, and consideration by, the City Council. During this time, the City Manager and Director of Finance composed the Budget Message.

The City Manager submitted, for City Council’s consideration, a balanced preliminary budget proposal (using one-time reserves to balance the budget, as well as anticipated appropriation savings) during the Council’s second meeting in May. Copies of the proposed budget were then made public. The public was informed through a news release and social media about opportunities to comment.

During the Council meeting, a public hearing is held prior to the formal budget adoption by the City Council.

After the City Council adopts the budget, staff brings forward personnel-related resolutions for City Council’s consideration. These resolutions address and put into practice all personnel-related actions associated with the Biennial Budget.

A month after the budget is adopted, the Budget Review Team holds a critique meeting to discuss the budget process. The purpose of this meeting is to determine what budget preparation and process worked well and what could have been done better.

The two-year budget allows time to effectively integrate goal setting and policy-making processes, with the establishment of performance targets and the allocation of resources. Short-term program and service objectives are developed, and resources to meet these objectives are appropriately allocated through the budget process. To complete the cycle, performance measures are used to evaluate if services were effective and policy goals met.

Before the second year of the two-year cycle, the City Manager and City Council will review progress on the pre-established goals during the first year of the budget cycle, adjust as necessary, and authorize amendments to the second year of the Biennial Budget.

The City Council has the authority to amend the budget by motion during the two-year period, while the City Manager is authorized to transfer the budgeted funds among departments or functions within the same fund without seeking approval from the City Council. However, any revisions altering the total balance must be approved by the City Council. This is explained in more detail in the Financial Policies in the Appendices. Further, the City Manager is authorized to approve emergency purchases of less than $125,000; emergency procurements above that threshold must be ratified by a majority vote of the City Council.

City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
44 KEY DATES IN THE BUDGET PREPARATION PROCESS
January 2026 Budget Instructions distributed to departments February City Council Goal Setting Session for the Budget Development March – April Budget Team compiles departmental requests and compiles Proposed Budget June 2 City Council reviewed Preliminary Biennial Budget Presentation at a public hearing, including citywide proposed budget, significant budget changes, and Capital Improvement Program.

June 16 Public Hearing and City Council adoption of the Final Budget

GUIDING BUDGET PRINCIPLES
The City is committed to preserving services and finding additional efficiencies to enhance the City’s fiscal health work toward achievement of its strategic initiatives. To this end, the City applied four guiding principles during the development of the Biennial Budget.

FINANCIAL ACCURACY
Executive management sees a comprehensive data collection and analysis effort to achieve accurate financial targets and projections as a core tenet, essential for the City’s future fiscal foundation. During the development of the Budget, City staff performed a comprehensive analysis of past performance, collected relevant data from internal and external sources, consulted subject matter experts, and used this data to produce well-informed projections for the budget document and plans.

FINANCIAL RESPONSIBILITY AND DISCIPLINE
Financial responsibility requires acknowledging and fully disclosing the City’s critical funding requirements. Fiscal discipline demands City departments operate within their budget. Management action calls for timely recommendations to City Council to address any financial issues confronting the City. Each of these aspects of financial responsibility and discipline was applied during the budget development process.

MAINTAINING ESSENTIAL SERVICES AND INFRASTRUCTURE
The City will find ways to address the challenges in funding its existing programs and services and identify revenues for the critical needs that have been unfunded for years, including repair, maintenance and replacement of buildings, roads and sidewalks, streetlights, and fleet, such as first responder vehicles. This tenet was applied extensively during the development of the budget; City leadership applied budget strategies that will have the least, or no, impact on City services and infrastructure. Additionally, Measure U has provided a revenue source for many of these needs. City departments continue to suggest ideas for new revenue generation.

City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
45 DEVELOPMENT OF A PRELIMINARY BUDGET

FINANCE DEPARTMENT
The budget process begins in the Finance Department in
October, with the preparation of baseline revenue and
expenditure assumptions. A comprehensive analysis of past revenue performance, the current economic environment, and other contributing factors is performed to develop revenue projections and determine available resources for the
upcoming budget cycle. Personnel assumptions are the primary focus of the Finance Department at this stage, with a
comprehensive assessment of the impact of current or
anticipated employee Memorandums of Understanding
(MOU). Other known costs, such as debt obligations and selfinsurance funding requirements are also projected, to arrive at a baseline budget.

CITY DEPARTMENTS
In January, City departments attend a budget kickoff meeting where they receive the budget development calendar, a
summary of the baseline budget, and direction on balancing measures, if applicable. The baseline budget represents the amount of funding available to maintain programs and current service levels and make progress toward achieving the City Council’s Priorities. During the months of January through February, departments define budgetary needs in relation to services, programs, and related strategic goals. Departments apply balancing measures using the criteria provided by City leadership. Departments also identify capital projects and funding sources for those projects during this time. Internal review of department budget submissions takes place in March, with the Finance Department recommending adjustments and providing guidance on each department's budget submissions.

DEVELOPMENT OF A PROPOSED BUDGET AND FIVE-YEAR

FINANCIAL PLANS
Internal budget workshops take place in March to discuss and select new funding initiatives, with consideration of the priorities defined by the City Council. During this timeframe, the City Manager’s Office and Finance Department review
departments’ critical unfunded needs and work to identify potential funding sources, such as Measure U. April and May are spent updating the preliminary budget.

The preliminary budget is presented at a Council workshop in May. At this public meeting, Councilmembers, and the public, gain an in-depth view into each City department’s operations and fiscal challenges. The City Council may ask questions and recommend changes to the preliminary budget. Public participation is encouraged during this meeting. Subsequently, feedback from all public meetings is incorporated to produce the budget as adopted by the City Council.

PROPOSED BUDGET SUBMISSION TO CITY COUNCIL
The Municipal Code requires that the City Manager provide City Council with a written proposed budget together with a message describing the important features. The Proposed Budget represents the culmination of the preliminary budget presentations to produce a Proposed Budget. The Proposed Budget is presented to the City Council in June. A Public Hearing is scheduled for a meeting in June and public notice is provided at least fifteen days before the hearing as required. Copies of the Oct-Dec:

Baseline budget
developed - the
starting point for
departments
Jan-Feb:

Departments
prepare
operating and
capital requests
March:

Finance review,
adjustment of
submissions
Mar-Apr:

Budget Team
review,
decisions on
new initiatives
April:

Budget Team
updates the
preliminary
budget
May:

Proposed
budget
prepared
June:

Proposed
budget
presented and
Final budget
adopted
City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
46 Proposed Budget are made available for inspection by the public in the City Clerk’s Office and on the City’s publicly accessible website.

BUDGET ADOPTION BY CITY COUNCIL
As required by state law, the City Council will adopt the City’s budget no later than June 30 of the fiscal year preceding the budget submitted for approval. The final budget submitted to the Council will be inclusive of all changes requested by the Council during the presentation of the proposed budget. The budget becomes effective July 1.

MID-CYCLE BUDGET REVIEW / QUARTERLY REPORTS
The City Manager keeps the City Council advised of the financial condition and future needs of the City and makes such
recommendations as may seem desirable during the Mid-Cycle Budget Review. To accomplish this, the City Manager presents a Mid-Cycle Budget Update in June of the second year of a biennial budget cycle. This update includes necessary
adjustments to the operating budget and personnel details that have been identified by staff since the adoption of the Biennial Budget. For all budgets adopted, whether annual or biennial, quarterly fiscal updates are presented to the City Council to keep City leadership and the public apprised of the City’s financial condition throughout the budget period. The quarterly updates include recommended budget adjustments and fiscal strategies as needed to respond to the current fiscal state of the City.

ADJUSTMENTS TO THE ADOPTED BUDGET
The City Council may amend or supplement the adopted budget with the affirmative vote of at least three members. The City Manager is authorized to transfer the budgeted funds among departments or functions within the same fund without seeking approval from the City Council. However, any revisions altering the total balance must be approved by the City Council. This is explained in more detail in the Financial Policies in the Appendices. Further, the City Manager is authorized to approve emergency purchases of less than $125,000; emergency procurements above that threshold must be ratified by a majority vote of the City Council. Through City Council adoption of the budget resolution, the City Manager is authorized to take all necessary actions to implement the provisions of the said budget, including future adjustments to the budget for unanticipated expenditures offset by revenues, transfers of budget amounts within a Fund, and any other adjustments approved by the City Council before the adoption of the budget resolution, and approving change order requests for City Council approved projects. City Council approval is required for all transfers from unappropriated fund balances or fund balance contingency reserves.

BASIS OF BUDGETING: ACCOUNTING VERSUS BUDGETARY BASIS
Governmental funds are used to account for the government’s general governmental activities.

Governmental fund types use the flow of current financial resources and the modified accrual basis of accounting. This means that revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined, and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.

Revenues are recorded when received in cash, except for revenues subject to accrual (generally 60 days after fiscal year-end) are recognized when due. Property taxes, charges for services, and interest associated with the current fiscal period are all considered susceptible to accrual and as such have been recognized as revenues of the current fiscal period. Only the portion of special assessments City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
47 receivable due within the current fiscal period is susceptible to accrual as revenue of the current period. All other revenue items are measurable and available when received by the government.

Expenditures are recorded when liabilities are incurred, as under accrual accounting except that principal and interest payments on long-term debt as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. The accrual basis of accounting is utilized by all Enterprise and Internal Service Funds. This means that revenues are recorded when earned and that expenses are recorded at the time liabilities are incurred. Effective fiscal control for debt service funds is achieved through bond indenture provisions and other management controls.

Budgetary accounting is a management tool to assist in controlling expenditures. Budgetary accounting is an important control tool because the annual budget is a legal compliance standard against which the operations of all funds are evaluated. While budgets are prepared for City capital project funds, capital projects generally span more than one year and are effectively controlled at the project level. The City adopts legal budgets for the General Fund and all special revenue funds.

Budgetary accounts include appropriation, encumbrances, and estimated revenues. Appropriations are the authorizations granted by the City Council to make expenditures or incur obligations for specific programs. Appropriations are made by the specific program and fund type. Encumbrances reserve a portion of an appropriation representing a current fiscal year obligation that has not been paid, or commitments related to unperformed contracts for goods and services. Estimated revenues are the anticipated resources the City expects to receive from various funding sources throughout the fiscal year.

Appropriations remaining at the end of the first year are eligible to be carried forward to the second year. All appropriations lapse at the end of the two years to the extent that the appropriations have not been expended or encumbered. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded to reserve that portion of applicable appropriations, is employed as an extension of formal budgetary integration in the governmental fund types. Lease contracts entered into by the City are subject to annual review by the City Council; hence, lease contracts are legally one-year contracts with an option for renewal for another fiscal year.

The City’s basis for budgeting is consistent with accounting principles generally accepted in the United States of America and with the City’s financial statements as presented in the Annual Comprehensive Financial Report (ACFR). Exceptions are as follows:
• Capital expenditures within the Enterprise Funds and Internal Service Funds are recorded as assets on an accounting basis but are shown as expenditures on a budgetary basis. • Depreciation of capital assets and amortization of various deferred charges are recorded on an accounting basis only. These charges are not reflected in the budget document. • Principal payments on long-term debt within the Enterprise Funds and Internal Service Funds are applied to the outstanding liability on an accounting basis but are shown as expenditures on a budgetary basis.
• Continued/Carryover appropriations represent previously budgeted funds unexpended at the end of the applicable budget period. Carryover requests are added to the City’s current budget period but are not included in the budget document or original budget submission to City Council.
• Certain funding such as grant funding, are not included in the budget document; these items are appropriated as needed throughout the fiscal year with approval from City Council.

COST ACCOUNTING
Cost accounting is the process of tracking, recording, analyzing, and allocating costs associated with activities provided by the City, which benefits multiple funds and departments within the City. The City City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
48 incurs direct and indirect costs through the provision of City services and programs. The City recovers the costs of City central administrative and support activities (central services) through the development and application of indirect cost rates. The City also uses Internal Service Funds to allocate costs for services such as Fleet Services, Business, Communication and Telephone Equipment, and Insurance Services through rental rates.

COST ALLOCATION PLAN
The Cost Allocation Plan (CAP) facilitates the allocation of General Fund administrative service costs to the departments, programs, or funds that receive benefit from the services. For example, the budgets for internal service departments (such as Human Resources) are allocated to public service departments (such as the Police Department and Public Works Department). The CAP uses various statistical data and is prepared in compliance with generally accepted accounting principles (GAAP) as recognized by the Governmental Accounting Standards Board (GASB) to distribute identified service costs appropriately.

FINANCIAL AND BUDGET POLICIES
The financial integrity of any City is of utmost importance. A key element in maintaining this integrity is a comprehensive set of budget and financial policies to guide city action developed in compliance with the National Advisory Council on State and Local Budgeting and the Government Finance Officers Association (GFOA) recommendations. These policies promote and ensure organizational continuity, consistency, transparency, and responsibility from year to year. This section identifies some of the fiscal management tools that the City of Santa Maria uses to guarantee fiscal and programmatic integrity and to guide the development of the City’s budget. The Budget and Financial Policies are and may be periodically amended and are included in the Appendices.

SUMMARY
The adoption of a budget is one of the most important actions taken by the City Council, as the budget establishes the City’s priorities and goals. The budget determines how resources are assigned to the goals, objectives, and priorities set forth by the City Council. The budget is the financial work plan translated into appropriations and supported by revenues. The following policies guide the development and management of the budget.

BUDGET POLICIES
The City uses a two-year financial plan, emphasizing long-range planning and effective program management. The City began preparing a two-year budget with the development of the 1986-88 Two-Year Budget. Preparing a two-year budget reinforces the importance of long-range planning, promotes more orderly spending patterns, and significantly reduces the amount of time and resources allocated to preparing annual budgets.

The City Council adopts a two-year budget that consists of two, one-year budgets. This format means that each year, of the two-year budget, is a separate spending guide and those unused appropriations will lapse at the end of the first fiscal year unless specifically carried forward into the second fiscal year. All unexpended appropriations lapse at the end of the two-year fiscal year period unless encumbered. Lease contracts entered into by the City are subject to annual appropriation by the City Council; hence the leases are legally one-fiscal year contracts with an option for renewal for another fiscal year.

BUDGET ADMINISTRATION
The City Council may amend the budget by a majority vote of the City Council at any time during the two years. The City Manager is authorized to make administrative adjustments to the budget as long as those changes do not significantly impact policy or affect budgeted year-end fund balances. Any revisions that alter the fund balance of a fund must be approved by the City Council. The level at which expenditures may not legally exceed appropriations is, therefore, established at the fund level.

City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
49 MID-YEAR BUDGET REVIEW
At the end of the first budget year, a Mid-Year Budget Review is conducted and recommended budget amendments for the second budget year are presented for City Council consideration.

MEASURABLE GOALS AND OBJECTIVES
Each fiscal year, measurable program goals and objectives are developed by each City department.

In addition to the publication of the Two-Year Budget, a separate document entitled “Goals and Objectives,” is annually published by the City Manager’s Office. The status of these goals and objectives are then formally reported, quarterly during the fiscal year, to the City Council.

QUARTERLY BUDGET REVIEWS
Reports on the City’s fiscal condition are presented to the City Council four times per year. If necessary, budget amendments required to maintain ongoing operations are presented to the City Council for consideration at that time.

BALANCED BUDGET
Unless otherwise authorized by the City Council, the City strives to adopt a balanced budget whereas operating revenues are equal to, or exceed, operating expenditures during each year of the two-year budget period. Any increase in expenses, a decrease in revenues, or a combination of the two that results in a budget imbalance requires a budget revision initiated by the City Manager, rather than spending unappropriated surpluses or designated reserves to support ongoing operations. Any yearend operating surplus will revert equally to General Fund Assigned Fund Balance for Unfunded Pension Benefits, to the capital projects fund for “one-time-only” General Fund expenditures, and to Local Economic Augmentation Fund (LEAF) until the LEAF fund balance reaches 5 percent of operating General Fund and Measure U operating appropriations.

Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in this situation, the beginning fund balance should only be used to fund capital improvement projects, or other “one-time,” non-recurring expenditures.

FINANCIAL REPORTING POLICIES

ANNUAL REPORTING
The City will prepare annual financial statements following generally accepted accounting principles (GAAP) requirements. The City will contract for an annual audit to be performed by a qualified independent certified public accountant and will strive for an unqualified opinion from the independent auditors.

The City will issue a request for proposal (RFP) at least every five years to evaluate replacement of the current auditors – this is to ensure that internal controls are freshly examined. Due to the frequent lack of qualified audit firms in the public sector, the current auditors are allowed to respond to the RFP.

The City will use GAAP in preparing the annual financial statements with the intent of meeting the requirements of the GFOA’s Award for Excellence in Financial Reporting Program. The City will issue audited financial statements within 180 days of the year-end date of June 30th.

INTERIM REPORTING
The City will prepare, and issue timely, interim reports on the City’s fiscal status to the City Council and staff. These reports will include, but are not limited to, the following:
• Online access to the City’s financial management system. • Updated, computerized financial reports available to City departments within five working days of month-end.
• Quarterly, departmental analysis of revenues and expenditures; including a comparison of budget to actual, for revenues and expenditures, and an explanation of variances greater than five percent of major categories (Salaries, Materials, Equipment, and Contracts); with City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
50 departments explaining variances, on the division level, greater than ten percent of their total budget.
• Quarterly Financial Reports to the City Council, outlining current economic conditions, the financial status of major funds, and if needed, budget amendments required to maintain ongoing operations.
• At the end of the first budget year, a Mid-Year Budget Review to assess revenues to date, projected revenues, the adequacy of the second-year budget, and identify any needed adjustments. This report recommends budget amendments to the City Council for consideration for the second-year budget.

DIVERSIFIED AND STABLE REVENUE BASE
The City seeks to maintain a diversified and stable revenue base to protect from short-term fluctuations in any one revenue source.

CURRENT REVENUES FOR CURRENT USES
The City will expend all current expenditures utilizing current revenues; and avoid procedures that balance current budgets by postponing needed expenditures, accruing future revenues, or rolling over short-term debt.

INTERFUND TRANSFERS AND LOANS
In adherence to grant requirements, GAAP, and public policy goals, the City has established various special revenue, capital project, debt service, and enterprise funds to account for revenues that are restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its revenue sources, expenditures, and fund equity.

Transfers among funds for operating purposes are outlined in the two-year budget document and can only be made by the Director of Finance, following the adopted budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from inter-fund borrowing, which are customarily made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources by the end of the fiscal year. In summary, interfund transfers result in a change in fund equity; inter-fund borrowings do not, as the intent is to repay the loan in the near term.

From time to time, interfund borrowings may be appropriate; however, these are subject to the following criteria to ensure that the fiduciary purpose of the fund is met:
• The Director of Finance is authorized to approve temporary inter-fund borrowings for cash flow purposes whenever the cash flow is expected to be resolved within 45 days. The most common use of this type of inter-fund borrowing is for grant programs such as Local Law Enforcement Block Grant Funds, where costs are incurred before drawdowns are initiated and received; and the receipt of funds is typically received shortly after the request for funds was made. • Other inter-fund borrowings, for cash flow or other purposes, are dealt with by a case-by-case review by the Director of Finance.

REVENUE MANAGEMENT POLICIES

REVENUE DISTRIBUTION
The City Council recognizes that GAAP, for State and local governments, discourages the “earmarking” of General Fund revenues. Though there may be occasions when specific revenue may be needed to fund an activity, the practice of designating General Fund revenues for specific programs should be minimized in the City’s management of its fiscal affairs. Approval of the following revenue distribution policies does not prevent the City Council from directing General Fund resources to other functions and programs, as necessary.
• Property Taxes: With the passage of Proposition 13 in 1978, California cities cannot set individual property tax rates. In addition to limiting annual increases in market value, placing a ceiling on City of Santa Maria 2026-28 Biennial Budget
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51 voter-approved indebtedness, and redefining assessed valuations, Proposition 13 established a maximum County-wide levy for general revenue purposes of one percent of market value.

Subsequent State legislation adopted formulas for the distribution of a County-wide levy of property taxes. The City now receives a percentage of total property tax revenues collected County-wide as determined by the County Auditor-Controller. General property tax remitted from the County is deposited into the General Fund as discretionary revenue. • Gasoline Tax Subventions: All gasoline tax revenues restricted by the State for street-related purposes will be used for maintenance activities. Because the City’s total expenditures for gas tax eligible programs and projects are much greater than this revenue source, operating transfers will be made between the Gas Tax fund and the General Fund. This approach significantly reduces the accounting efforts required in meeting State reporting requirements. • Transportation Development Act (TDA) Revenues: TDA revenues are allocated to transportation programs, including regional and municipal transit systems, pedestrian and bikeway improvements, and street and road construction.
• Proposition 218: According to the terms of Proposition 218 passed by the voters in November 1996, tax revenues cannot be initiated or increased without a majority vote of the populace.

Therefore, the City property tax, sales tax, business license tax, and transient occupancy tax revenues cannot be increased without a community vote.

COST RECOVERY POLICY

USER FEES POLICY
The City imposes fees and charges to users for City services, goods, and permits. These fees and charges can be set at 100 percent of full cost or be subsidized by City funds. In adoption of fees, it must be found that fees and charges do not exceed the City's costs of providing the service or processing work. User fees and charges will be adjusted biannually to recover the full cost of services provided, unless City Council determines that a subsidy from the General Fund (or any other fund) is in the public’s best interest.

According to the standards established by Government Finance Officers Association (GFOA) and National Advisory Council on State and Local Budgeting (NACSLB) and their best practice guidelines, governments should calculate the full cost of the different services they provide. For instance, GFOA recommends a formal fee policy that should identify factors to be considered when pricing services.

Factors to be Considered When Setting Fees and Charges, and Cost Recovery Levels:
• Consider community-wide versus special service nature of the program or activity. The use of general purpose (tax) revenue is appropriate for community-wide services, while user fees at full cost are appropriate for services which are of special benefit to easily identified individuals or groups.
• The full cost of providing a service should be calculated to provide a basis for setting the charge or fee. Full costs shall include the following elements: direct labor, fringe benefits, equipment, materials, contract services, utilities, and cost allocation of indirect expenses, including legislative and central service costs.
• Fees and charges, in the absence of a specific public policy exception, should be set at full cost recovery.
• Public policy exceptions can occur due to the nature of the program or activity.

DEVELOPMENT IMPACT FEES
The Council’s policy is that to the extent reasonable, growth should pay for itself. As such, the Council has adopted a schedule of development impact fees. Development impact fees are one-time charges assessed against new customers to recover their proportional share of capital costs incurred to provide service capacity for new customers. Developer contributed assets will be considered for City of Santa Maria 2026-28 Biennial Budget
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52 credits against the impact fee based on a modeled value. Appropriate development fees are an important component in the overall strategy for financing capital improvements.

The city’s objectives for development impact fees shall include the following:
• Support the reasonable cost of growth.
• Consider the impact of growth on existing residents.
• Develop cost justified development fees.
• Address infrastructure requirements.
• Promote economic development.
• Provide financial capacity.

Development impact fees may be assessed for a public purpose such as:
• Libraries
• Parks, recreation facilities, trails and open space
• Law enforcement
• Fire protection
• General government
• Transportation
• Water
• Water resources
• Wastewater
• Solid Waste

DEBT POLICIES
The City’s debt management policy requires full disclosure of all financial reports. The City’s practice is to pay for capital projects and capital improvements on a pay-as-you-go basis using current revenues whenever possible. If a project or improvement cannot be financed with current revenues, long-term debt will be considered. The City will consider refinancing outstanding debt after comparing the cost of refinancing with the savings from reduced interest expense. Every effort will be made to limit the amount of general obligation debt. All general obligation debt will be used only for public purposes.

The following are those factors the City will take into consideration when incurring debt:
• The City will adhere to its debt covenants.
• The City will periodically review its debt capacity.
• The City will issue bonds only for capital improvements and general obligations. Long-term debt will not be used to fund operating activities.
• The City will publish and distribute an official statement for each bond and rate issue. • The City will not issue long-term debt with a maturity longer than the useful life of the project or item funded.
• If the City utilizes long-term debt financing, staff will ensure that the debt is soundly financed by determining that the cost/benefit ratio of the improvement is positive, and the revenue sources used to repay the debt are conservatively projected.
• Where possible and feasible, the City will use special assessment, revenue, or other selfsupporting bonds and avoid the use of general obligation debt. • The City will maintain solid relationships and communications with bond rating agencies and will strive for improvements in the City’s bond rating.

The purpose of the City’s Debt Management Policy is to promote sound and uniform practices for issuing and managing bonds and other forms of indebtedness, to provide guidance to decisionmakers regarding the appropriate use of debt and other repayment obligations of the City, and to City of Santa Maria 2026-28 Biennial Budget
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53 comply with Government Code section 8855(i), which became effective January 1, 2017. The debt policy includes the following:
• The purpose for which the debt proceeds may be used;
• The types of debt that may be issued;
• The relationship of the debt to and integration with the City’s capital improvement program or budget;
• Policy goals related to the City’s planning goals and objectives; and • Internal control procedures that the City has implemented to ensure that the proceeds of the debt issuance will be directed to the intended purpose.

The City’s practice is to pay for capital projects and capital improvements on a pay-as-you-go basis using current revenues whenever possible. If a project or improvement cannot be financed with current revenues, long-term debt will be considered. The City will consider refinancing outstanding debt after comparing the cost of refinancing with the savings from reduced interest expense. Every effort will be made to limit the amount of general obligation debt.

DEBT LIMIT
Section 43605 of the State Government Code provides a legal debt limit of 15 percent of gross assessed valuation. This provision, however, was enacted when assessed valuation was established based on 25 percent of market value. Effective with fiscal year 1981-82, taxable property is assessed at 100 percent of market value. Although the State debt limit provision has not been amended since this change, the percentage has been proportionately modified to 3.75 percent for the purpose of this calculation for consistency with the original intent of the debt limit.

DEBT LIMIT
Gross Assessed Valuation $13,090,818,195
Legal Debt Limit – 3.75 Percent of Gross Valuation $ 490,905,682 General Obligation Bonded Debt 0
Other Long-Term Debt:

Revenue Bonds and Other Long-Term Debt 1,448,586
Less Deduction Allowed by Law 0
Total Debt Applicable to Computed Limit 0
Legal Debt Margin $ 489,457,096

FUND BALANCE RESERVES

BACKGROUND
To protect City operations from downturns in the economy, State reductions of local revenues, natural or man-made disasters, and the City’s creditworthiness, the City Council desires that the City maintains specific fund balance levels for the General and Enterprise Funds. These minimum balances will adequately provide for cash flow requirements and provide a contingency for unanticipated operating or capital needs.

MINIMUM BALANCES
• General Fund: The City’s General Fund will endeavor to maintain a minimum unassigned fund balance of at least 25 percent of operating appropriations. These reserves are needed to City of Santa Maria 2026-28 Biennial Budget
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54 insulate the General Fund programs and current service levels from large and unanticipated one-time expenditure requirements, a revenue reduction due to a change in State or Federal legislation, and other unforeseen circumstances.

In 2010-11, the City adopted a General Fund Prudent Reserve under GASB Statement Number

54. The prudent reserve amount is updated annually calculated based on 25 percent of operating appropriation. Appropriations from the reserve can only be made by formal City Council action and are limited to emergencies such as:
o An unplanned, major event such as a catastrophic disaster requiring expenditures over five percent of the adopted General Fund Budget.
o Budgeted revenue was taken over by another entity.
o A drop in projected/actual revenue of more than five percent of the adopted General Fund revenue budget.

Should the prudent reserve commitment be used, and its level falls below the minimum amount as described herein, the goal is to replenish the fund within two fiscal years. • Enterprise Funds: The Enterprise Funds of Water Resources, Solid Waste, and Transit will endeavor to fund and maintain a minimum working capital balance of 20 percent of operating appropriations.
• Vehicle and Equipment Replacement Funds: The City maintains three “Internal Service Funds” to provide for the timely replacement of vehicles and related equipment, business equipment, and communication equipment. The City will endeavor to maintain a minimum fund balance in each of these funds equal to 20 percent of the original purchase cost of the items accounted for in the fund.

As an Internal Service Fund, revenues are received by charging the other City funds utilizing vehicle and related equipment, business equipment, and communication equipment. The annual contribution to this fund will be based on a use allowance. The use allowance is calculated by the original cost of the item plus a four percent cost growth, divided by the estimated life of the vehicle or equipment. Also, funds are charged for actual incurred maintenance costs plus overhead.

LIABILITY AND WORKERS’ COMPENSATION FUNDS
The City will perform annual actuarial studies for the Liability and Worker’s Compensation funds and will fund the Liability Insurance fund at the 85 percent confidence level and the Worker’s Compensation Fund at the 85 percent confidence level.

As prudent, based on cost and benefit analysis, the City may elect to self-insure certain assets. The City will review funding levels for self-insured assets on an annual basis and set-aside appropriated reserves to replenish assets throughout the year. The funds will be set-aside as reserves within the respective operating or internal insurance funds.

LOCAL ECONOMIC AUGMENTATION FUND
The Local Economic Augmentation Fund is a reserve fund established in 2000-01 to be used as the primary financing mechanism to address any potential revenue shortfalls during times of economic downturns or severe State action, so as not to significantly impact the operating budget and service levels of the General Fund. The City Council set aside General Fund proceeds into this account. The intent of this fund is to be used as a “gap financing” mechanism during downturns in the local economy. The City will strive to maintain 5 percent of General Fund and Measure U fund annual appropriations in the LEAF fund balance.

APPROPRIATIONS LIMITATION

BACKGROUND
Proposition 4 (Gann Initiative) requires that all local governments calculate and report the annual appropriations limits, i.e., the maximum appropriation, allowed by law, that the municipality may City of Santa Maria 2026-28 Biennial Budget
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55 spend. Article XIII-B of the State Constitution Senate Bill 1352, passed in August 1980, requires each local government to establish, by resolution, an annual appropriations limit. In June 1990, the voters of the State of California approved Proposition 111, which subsequently modified the adjustment formula.

Under Proposition 4, if a local government ends the fiscal year with more proceeds of taxes than the appropriations limit allows, the municipality is required to return the excess to the taxpayers within two years (by reducing taxes or fees). Municipalities may use those two years to request voters to approve an override increasing the appropriations limit.

REPORTING REQUIREMENTS
• Annually, in July, the City Council will adopt a resolution establishing the City’s appropriations limit calculated following Article XIII-B of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter-approved amendments or State legislation that affect the City’s appropriations limit. • The supporting documentation used in calculating the City’s appropriations limit and, projected appropriations subject to the limit, will be available for public and City Council review at least 10 days before City Council’s consideration of a resolution to adopt an appropriations limit. The City Council will generally consider this resolution in connection with the final approval of the budget.
• The City will strive to develop revenue sources, new and existing, which are considered nontax proceeds in calculating its appropriations subject to limitations. • The City will actively support legislation or initiatives sponsored or approved by the League of California Cities that would modify Article XIII-B of the Constitution in a manner that allows the City to retain projected tax revenues that result from growth in the local economy for use as determined by the City Council.
• The City will seek voter approval to amend the appropriations limit if the tax proceeds are more than allowable limits.

CAPITAL MAINTENANCE EQUIPMENT PROJECT

OTHER DESIGNATIONS AND RESERVES
In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years, which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designation required by contractual obligations, State law, or GAAP requirements. Appropriations for projects approved in prior years will be carried forward administratively unless a project has not commenced within two years from the original funding approval date.

CAPITAL IMPROVEMENT PROJECT (CIP), MAINTENANCE, EQUIPMENT PROJECT (CIP-MEP) PURPOSE The purpose of the CIP-MEP is to systematically plan, schedule, budget, and finance capital projects to ensure cost-effectiveness and efficiency of construction.

General Fund CIP-MEPs will be budgeted in the General Fund Capital Projects Fund, while Enterprise and Internal Service Fund CIP-MEPs will be budgeted in the individual funds.

The CIP-MEP is a four-year plan organized into the same functional groupings used for the operating programs. Because the four-year plan is a planning tool rather than a budgeting tool, only two years of CIP-MEPs are reported in the two-year Capital Project section of the budget. The CIP-MEP, reported in the two-year budget, reports the responsible fund, the year funding will be appropriated, funding sources, and totals by category (Public Safety, Public Utilities, Public Ways and Facilities, etc.).

CIP-MEP - $5,000 OR MORE
Construction projects and equipment purchases, that cost $5,000 or more, will be included in the Capital Projects section of the budget; while minor capital outlays of less than $5,000 will be included within the operating program budgets.

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Guide to the Budget
56 CIP-MEP REVIEW
The City Manager’s Office, in combination with the Public Works and Finance Departments, will review the project proposals and determine a listing of projects for the two-year budget document. CIP-MEP projects that were approved in the prior budget but that did not start by the end of the calendar year are ineligible for carryover to the new budget.

DEFINITIONS
The following definitions are provided to clarify the difference between a capital project (outlay) and a capital/maintenance equipment project.
• Capital Outlay: A capital project must include one or more of the following:
o Betterment: The replacement of an asset, by an improved or superior asset, results in a productive, efficient, and long-lived property. Betterment is considered capital outlay when the amount expended is “significant,” generally 20 percent or greater than the market value of the assets.
o Addition: Attached or separate units, which are extensions of an existing unit. o Acquisition, Construction, Rights-of-Way, etc.: The acquisition of new tangible assets, which are generally classified as land, structures, and improvements. • Maintenance: An expenditure for repair or alteration to a facility, which neither materially adds to the value of the facility nor appreciably prolongs its life. • Capital Equipment: The acquisition of capital equipment that is classified as Fixed Assets.

Generally, the equipment is valued at $5,000 or more plus any computers, communications, or technical equipment that attach to the City’s network are classed as fixed assets. Other equipment under $5,000 may be acquired from operating funds. • CIP-MEP Appropriation: Departmental requests for CIP-MEP funding are reviewed against the following criteria:
o Are additional funds needed to complete projects in progress; o Is the project required to meet a legal or policy mandate; o Is the project required to improve unacceptable health and/or safety conditions; o Is the project required to maintain existing facilities or assets; o Is the project required to maintain existing service levels; o Will the project reduce other City costs;
o Will the project enhance and maximize operational efficiencies? Generally, project appropriations are made when the two-year budget is approved. If project costs at the time of bid award are less than the budgeted amount, the balance will be unappropriated and returned to the fund balance or, with the approval of the City Manager, allocated to another project. If project costs at the time of bid award are greater than budget amounts, the following options are available:
o Eliminate the project from the CIP-MEP listing;
o Defer the project for consideration to the next budget period; o Redesign or change the phase of the project to meet the existing budget; o Transfer funding from another specified lower priority project; o Request City Council approval to appropriate additional resources from fund balance. • Budget Carryover: To ensure that appropriations for uncompleted capital projects, grants, and professional services, from the fiscal year that is being closed, are available in the new fiscal year, departments follow a carry-over process. This process requires a departmental review of City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
57 appropriations and expenditures as of the last day of the fiscal year; identification of purchase orders rolled over to the new fiscal year; determination of uncompleted grants, contracts, and capital projects.

The project appropriations will be reviewed biennially through the budget development process and any modifications for appropriations will be reviewed through the budget adoption.

Carry-over budget amounts are unused appropriations in the previous fiscal year and additions to the new fiscal year budget. These are grants, agreements, or projects that received City Council approval, but purchase orders were not issued nor were the projects/contracts/grants completed at year-end. Qualifying carry-over appropriations are requests for bids, requests for proposals, grants spanning multiple fiscal years, and approved uncompleted capital projects.

Before any budget carryover departments submit a listing of the unused appropriations/budget carryover request to the Department of Finance for consideration and recommendation to the City Manager’s Office.

CONTRACT SERVICES POLICY

GENERAL POLICY GUIDELINES
• Purpose: Contracting with the private sector, for the delivery of services, provides the City with a significant opportunity for cost containment and productivity increases. In some instances, the City uses private sector resources in delivering municipal services as a key element in the City’s continuing efforts to provide cost-effective programs.
• Types: The City uses private sector contracting for construction projects, professional services, outside employment agencies, and other ongoing operating and maintenance services. • Purchasing Policy: All contracts will be executed in accordance with the City’s Council approved Purchasing Policy.
• Evaluating Costs: Indirect, direct, and contract administration costs of the City are to be identified and considered when evaluating and comparing the costs of private sector contracts with inhouse services. • Contract Change-Orders: When circumstances dictate that it is in the best interests of the City for cost-efficiency purposes to deliver a project or to provide unanticipated like services within current appropriation authority, contract change orders may be executed. Contract change orders, for like services, often take advantage of economies of scale, cost-effectiveness, or may be desirable when time is of the essence. Contract change-order funding must be available within the existing budgeted authority, supported by proper justification, and approved by the City Manager on a case-by-case basis.
• Conversion to Contract Services: Programs and activities that are currently provided by City employees may be converted to contract services when attrition, reassignment, or absorption of City staff occurs. However, such conversion would not happen until the proper notification requirements are made to the affected employees.
• Evaluation Criteria: The cost-effectiveness of using contract services to meet established service levels will be evaluated using the general policy guidelines stated above and, on a case-by-case basis using the following criteria:
o Available Vendors: Is there a sufficient private sector market that can competitively deliver the service and offer a reasonable choice of alternative service providers? o Contract Administration: Can the contract be effectively and efficiently administered by City staff?
o Contract Provisions: Can the contract contain provisions to compensate the City for damages should the contractor fail to perform?
City of Santa Maria 2026-28 Biennial Budget
Guide to the Budget
58 o Staffing Levels: Can a private-sector contractor respond to expansions, contractions, or other special requirements of the service by rapidly adjusting staffing levels? o Scope of Work: Can the scope of work be sufficiently defined to ensure that competing proposals are fairly and fully evaluated, and can the contractor’s performance be fairly evaluated after the bid award?
o Service Levels: Does the use of contract services provide the City with an opportunity to redefine service levels?
o Emergency Services: Will the contract limit the City’s ability to deliver emergency or other high-priority services?
o Accountability and Responsibility: Overall, can the City successfully delegate the performance of the service and still retain accountability and responsibility for the service delivery?
59 SIX-YEAR FINANCIAL PLANS FOR

GENERAL FUND & MEASURE U
& ENTERPRISE FUND OVERVIEWS
City of Santa Maria 2026-28 Biennial Budget
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City of Santa Maria 2026-28 Biennial Budget
Six-Year Financial Plans for General Fund & Measure U
61 OVERVIEW
Multi-year financial planning provides the City Council, City staff, and the public with greater certainty regarding the ongoing funding and staffing for programs and services. During the development of long-term financial plans, the City identifies factors (known or anticipated) that may have a significant effect on future revenues, expenditures, or staffing levels. The analysis is based on past city revenue and expenditure trends, general and relevant economic trends and outlooks, input from City departments who oversee those specific expenditure and revenue streams, and consultation with outside economists and revenue experts.

REVENUE AND EXPENDITURE FORECASTING METHODOLOGY
Citywide revenues and expenditures are projected using two forecasting techniques: qualitative analysis and quantitative analysis.

Qualitative analysis projects future revenues and/or expenditures using non-statistical techniques.

These techniques rely on human judgment rather than statistical analysis to arrive at revenue projections. Qualitative forecasting is essential for projecting revenue or expenditure components that are unstable, volatile, or for which there is limited historical information.

The projection of revenues is not simply a calculation but is rather an estimation based on current revenues and key revenue assumptions, such as population growth, changes in the consumer price index, and other economic growth factors. The City paid close attention to the two major revenue sources controlled by the State of California, sales tax and property tax (which includes the property tax in lieu of motor vehicle license fees) because these two revenues represent approximately twothirds of the City’s General Fund (including Measure U) revenues. The estimates of these two revenues are done in conjunction with the assistance of the City’s sales tax and property tax auditors, as well as considering many economic factors.

The City relied on a variety of information to guide the development of revenue projections. The City studied economic trends reported by the national media; California economic information developed by the State Legislative Analyst and the State Department of Finance; County of Santa Barbara forecasts by the Assessor and Auditor-Controller; and outside perspective from financial experts. The City contracts with Hinderliter, de Llamas, and Associates (HdL) to provide sales and use tax allocation audits and information services.

Staff developed revenue estimates based on trends and forecasts available as of early December.

These estimates consider the City's local economy, the City's current revenue, and a realistic estimate of what the future holds. Staff also evaluated recent commercial construction projects bringing new retail stores to the community. Ultimately, revenue projections reflect the staff’s best judgment about local economic trends over the next two years and the effect on City revenues.

Quantitative analysis involves looking at data to understand historical trends and causal relationships.

One kind of quantitative analysis is time series analysis; it is based on data which has been collected over time and can be shown chronologically on graphs. When using time series techniques, the forecaster is especially interested in seasonal fluctuations which occur within a year, the nature of multiyear cycles, and the nature of any possible long-run trends. Causal analysis is another type of quantitative analysis; it deals with the historical interrelationships between two or more variables. One or more predictors influence, directly or indirectly, the future revenue or expenditures (e.g., the effect of transient occupancy tax revenue on sales tax revenue).

ENTERPRISE FUNDS
The City’s Enterprise Funds account for water, wastewater, solid waste collections and disposal, and transit services. Annually, City staff determines the adequacy of the rate structures for each of these enterprises taking into account expected operations, maintenance, and capital costs.

City of Santa Maria 2026-28 Biennial Budget
Six-Year Financial Plans for General Fund & Measure U
62 GENERAL FUND SIX-YEAR FINANCIAL PLAN
A six-year financial plan projects the fiscal health of the City’s General Fund and allows policy makers and management to understand the fiscal gaps that may exist between revenue forecasts and projected expenditure requirements. The six-year General Fund financial plan provides a guide for establishing City department budget targets; these targets are used by departments to develop budget proposals that are constrained by the resources anticipated to be available in the upcoming fiscal year.

GENERAL FUND REVENUE ASSUMPTIONS
Revenue estimates for the General Fund six-year plan are prepared through an objective, analytical process based on year-to-date trends, prior years’ data, and anticipated one-time adjustments. In all instances, the City provides reasonable revenue projections to prevent undue or unbalanced reliance on certain revenues and to ensure the ability to provide ongoing services. Data used to compile General Fund revenue assumptions includes, but is not limited to, communication with the business community (e.g., shopping centers, malls, and auto centers); economic data; historical revenue analysis; sales tax and economic consultants; City departments; and the County of Santa Barbara.

The following is a brief description of the City’s top four General Fund revenue sources and the general assumptions used in preparing the revenue projections for the Biennial Budget. These four revenue sources account for approximately three-quarters of total General Fund revenues (including the local Measure U sales tax add-on). The remaining General Fund revenues are comprised of departmental services and program revenues, franchise fees, permits and licenses, property transfer taxes, fines and penalties, interest earnings, grants, revenues from other agencies, and other miscellaneous revenue sources.

SALES TAX
Sales tax is by far the General Fund's
largest revenue source, therefore, vitally
important to the City’s future. This source
is volatile, as demonstrated by the
COVID-19 outbreak. The City receives 1
percent (also known as Bradley Burns
portion) of the 8.75 percent sales tax
collected from retail sales occurring
within the City limits. The State collects
and remits the sales tax to the following
benefiting agencies: 5.75 percent to the
State for the General Fund and various programs, 2 percent to the City's General Fund (1 percent General Fund and 1 percent Measure U), 0.5 percent to the Local Public Safety Fund, and 0.5 percent for local and regional transportation purposes (Measure A), for a total sales tax rate of 8.75 percent.

Sales tax revenues are projected to increase to $31.9 million in 2026-27, up from $30.8 million in 2025-

26. The 2027-28 projection is $32.6 million.

Influences on sales tax include high inflation passed along in the cost of goods and expected interest rate increases by the Federal Reserve, according to HdL, the City’s sales tax consultant. According to HdL, calendar year 2025 saw people pursue deals for new and used cars and helped to propel the automotive group’s positive sales. The E-V credit expired at the end of September and many rushed to take advantage of that along with dealer incentives. Shoppers took advantage of retail ecommerce summer promotions that led to increased allocations from the countywide use tax pool.

Business-industrial sales gained with light industrial orders and a larger one-time investment reported.

Building materials sales faltered with more focus on repairs rather than large projects. Cost-conscious consumers have pulled back on retail purchases at specialty stores and are often dining out less frequently due to higher menu prices.
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MILLIONS
Analysis of Sales Tax Revenue
Sales Tax Sales Tax In Lieu
City of Santa Maria 2026-28 Biennial Budget
Six-Year Financial Plans for General Fund & Measure U
63 Sales tax revenue is one of the most sensitive revenue components. Economic factors can contribute to wide swings in receipts.

PROPERTY TAX
Property tax represents 27 percent of
General Fund revenues. For 2026-27 the
City is projected at $29.5 million, and
$29.9 million for 2027-28. Proposition 3,
approved by voters Statewide in June
1978, limits general-purpose property
taxes to 1 percent of market value and
limits the growth of property tax
assessments to 2 percent growth per
year. Assessments are increased to
reflect current market value when
property ownership changes or
improvements are made to the
property; otherwise, assessed values are limited to an annual 2 percent increase.

Property tax assessment, collection, and apportionment are performed by the County.

TRANSIENT OCCUPANCY TAX
Transient Occupancy Tax (TOT)
revenues account for 3.7 percent of
General Fund revenues. TOT is levied on
individuals occupying a hotel or motel
for 30 days or less. The TOT rate is
assessed at 12 percent of the room
rental rate (10 percent for the City, and
2 percent for the Santa Maria Valley
Tourism Marketing District). Although TOT
is collected for the City by the
hotel/motel operators, it is a tax on the
occupant, not the hotel/motel. Also, in
February 2016, the Chamber of Commerce created a Tourism Improvement District with a 5-year term, and this was extended and is now known as Santa Maria Valley Tourism Marketing District. The added revenue generated from the 2 percent can only be used to facilitate increased tourism. There are currently 30 hotels/motels in town generating TOT revenue. TOT revenue is highly dependent on tourism and therefore was most impacted by the pandemic and the stay-at-home mandates that were implemented statewide. In 2018-19, TOT revenues were $3.4 million, dropped to $2.9 million in 2019-20, and declined to $3.2 million in 2020-21. TOT revenues rebounded to pre-pandemic levels of $4.3 million for 2021-22 and $4.5 million for 2022-23 as the public’s pent-up demand to travel surged; however, it has since dropped to approximately
$4.0 million. This revenue stream is
anticipated to remain flat through 2026-
28 as broader travel options have
opened up post-pandemic.

CONSTRUCTION PERMITS
Construction permits are required for all
new structures built within the City, as
well as for additions or upgrades to
existing buildings or property. Residential
and commercial activity remain high,
with significant multi-family residential
construction as well as accessory dwelling units. Apartment projects including Centennial Gardens, $-
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MILLIONS
Analysis of Property Tax Revenue
Property Tax Property Tax In Lieu of VLF Combined Property Tax $-
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$5

MILLIONS
Analysis of Transient Occupancy Tax
Transient Occupancy Tax
$-
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$4
$6

MILLIONS
Analysis of Construction Permits
Construction Permits
City of Santa Maria 2026-28 Biennial Budget
Six-Year Financial Plans for General Fund & Measure U
64 Centennial Square, Elements, Santa Maria Studios opened in 2024, adding to the City’s housing inventory. Since 2018, the City has issued over 1,600 permits for accessory dwelling units, on par or exceeding the rate of construction for apartment units. FY 2025-26 marked the highest permit volume in the City’s history, breaking the prior record set in the previous year. Construction of Accessory Dwelling Units (ADUs) continues to form a substantial amount fo the overall permit volume. Housing development remains strong, with approximately 5,600 housing units currently in the development review and/or construction process. Notable projects include Las Brisas, a 443-unit apartment complex, which will be completed in 2026, and Bellecrest Senior Residences, a 142-unit single-family senior housing development slated to break ground in 2026. After peaking at $5.6 million in 2017, largely due to permit fees collected for Enos Ranch, a regional shopping center, anticipated construction permit revenue in 2026-27 is projected at $4.7 million, or 3.5 percent of General Fund revenue.

GENERAL FUND EXPENDITURE ASSUMPTIONS
When developing expenditure assumptions for the General Fund, both known factors, such as the impact of employee Memorandums of Understanding (MOUs); debt service requirements; contractual obligations; and economic uncertainties, such as the rising cost of goods and services are considered.

During the development of the budget, City departments perform a comprehensive analysis of financial requirements to maintain service levels and quality, maintain critical infrastructure, and provide programs. For non-personnel cost estimates, fixed costs for multi-year contracts, assumptions based upon historical spending trends within individual expenditure categories, and a conservative Consumer Price Index (CPI) factor are applied to expenditure projections throughout the five-year plan.

Personnel costs are the largest and most impactful expenditure category in the General Fund Budget, exceeding 70 percent of the total General Fund Budget, excluding the California Public Employees Retirement System Unfunded Accrued Liability (CalPERS UAL). Some currently active MOUs are scheduled to expire in FY 2025-26 while others are scheduled to expire at the end of FY 2026-27.

Increases have been incorporated into the budget in alignment with those already authorized for FY 2026-27.

The budget and six-year plan must take into consideration long-term strategies to address the City’s long-term financial sustainability.

FISCAL CHALLENGES, RISKS, AND STRATEGIES

SALARIES AND BENEFITS
As of April 2024, new agreements were reached with certain bargaining units. There is a base salary increase of 4.0 percent for members of the Santa Maria City Fire Fighters’ Union Local 2020 and 1.0% for members of SMPOA. In January 2027, members of the Santa Maria Police Officers’ Association (SMPOA) will be eligible for a F-step within the range 5% above the current E-step. Employees who have been at E-step for one year or more will be moved to the new F-step. The increase in compensation drives up CalPERS costs.

As in prior years, personnel costs remain the largest component of the City’s operating expenditures budget for 2026-28, accounting for $150.0 million, or 69.1 percent, associated with salaries and benefits.

The breakdown by year is $74.2 million in 2026-27 and $75.7 million in 2027-28.

UNFUNDED PENSION LIABILITY
The City has undertaken pension reform to address its CalPERS obligations. The City has three tiers of employees based on hire date: Tier I is before July 1, 2011; Tier II hires after July 1, 2011, and public employment before January 1, 2013; and, Tier III hires (PEPRA) with California public employment begun after January 1, 2013. Back in early 2011, the City engaged in pension reform measures with its employee groups requiring all new employees (Tier II) to pay the employees’ share of pension expenses, which represents either seven percent for miscellaneous members or nine percent for safety members, of their salary. Tier III (PEPRA) employees pay a higher percentage of their pension expenses.

City of Santa Maria 2026-28 Biennial Budget
Six-Year Financial Plans for General Fund & Measure U
65 FUND RESERVES
The City’s General Fund endeavors to maintain a minimum unassigned fund balance of at least 25 percent of operating appropriations to insulate the General Fund programs and current service levels from large and unanticipated one-time expenditure requirements, a revenue reduction due to a change in State or Federal Legislation, and other unforeseen circumstances.

The Local Economic Augmentation Fund is a reserve fund established in 2000-01, made up of one-time discretionary resources, distinct from the General Fund that is designed to help balance the General Fund’s operating budget during times of economic and/or financial crisis. The City Council set aside General Fund proceeds into this account. The intent of this fund is to be used as a “gap financing” mechanism during downturns in the local economy.

In 2010-11, the City adopted a General Fund Economic Stabilization (Prudent Reserve) under GASB Statement Number 54. The prudent reserve amount was set at $19.8 million. Appropriations from the reserve can only be made by formal City Council action and are limited to emergency situations.

Examples of such emergencies include but are not limited to: covering expenses arising from a natural disaster, to replacing revenue taken over by another entity, or to a drop in actual/projected revenue of more than five percent of the General Fund adopted revenue budget. Should the prudent reserve commitment be used, and its level falls below the minimum amount as described herein, the goal is to replenish the fund within three fiscal years.

The Biennial Budget shows a significant structural imbalance. The ongoing expenditures in the General Fund exceed the ongoing revenues by $7.3 million in FY 2026-27 and $7.9 million in FY 2027-28. The City Manager’s proposed Fiscal Year 2026-28 Biennial Budget includes a recommendation to balance FY 2026-27 with a transfer in from LEAF’s one-time savings of $7.3 million.

The chart below shows the General Fund fiscal forecast. The Revenues line excludes operating transfers in of $9.5 million in FY 2026-27 and $2.3 million in FYs 2027-2032. $70,000
$80,000
$90,000
$100,000
$110,000
$120,000
$130,000
$140,000
2020-21A 2021-22A 2022-23A 2023-24A 2024-25A 2025-26E 2026-27P 2027-28P 2028-29F 2029-30F 2030-31F 2031-32F GENERAL FUND FORECAST ($ IN '000'S)

ANNUAL SURP/(GAP)

CUMULATIVE GAP

REVENUES
USES
City of Santa Maria 2026-28 Biennial Budget
Six-Year Financial Plans for General Fund & Measure U
66 The chart below shows the composition of the General Fund fiscal forecast categories. Revenues include operating transfers in of $9.5 million in FY 2026-27 and $2.3 million in FYs 2027-28. 2019-20A 2020-21A 2021-22A 2022-23A 2023-24A 2024-25A 2025-26E 2026-27P 2027-28P Salaries & Benefits $48.855 $49.984 $50.500 $55.068 $58.662 $67.109 $79.892 $74.225 $75.731 Supplies & Services $14.895 $14.781 $17.286 $19.619 $23.539 $24.563 $27.532 $27.633 $27.926 Capital & Outside Agencies $1.485 $1.022 $1.245 $1.557 $1.846 $1.341 $2.841 $0.850 $0.850 Debt Service $0.073 $0.055 $0.037 $0.286 $0.288 $0.267 $0.267 $0.267 $0.000 Transfers $6.624 $7.188 $14.911 $8.538 $5.194 $8.081 $4.155 $4.642 $4.720 Total Expenditures $71.932 $73.030 $83.980 $85.068 $89.529 $101.361 $114.686 $107.617 $109.227 Total Revenues $73.756 $74.730 $89.566 $87.613 $90.836 $100.052 $105.924 $107.617 $101.375 $0
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$140 General Fund Revenues and Expenditures

MILLIONS
City of Santa Maria 2026-28 Biennial Budget
Six-Year Financial Plans for General Fund & Measure U
67 MEASURE U FUND SIX-YEAR FINANCIAL PLAN

OVERVIEW
Measure U, a one-cent local Transaction and Use Tax, is collected as part of the 8.75 percent total sales tax rate. City voters initially approved Measure U in the June 2012 election (63.95 percent support), enacting a one-quarter-cent tax. More recently, voters in the November 2018 election (with a 74.18 percent majority) extended and enhanced Measure U at the one-cent rate. The Measure U fund accounts for local transactions and use tax within the City of Santa Maria is combined with the General Fund for financial reporting purposes. The City Council authorized that 90 percent of the proceeds be spent on public safety-related services, then five percent on youth services, and five percent on programs for quality of life. The Measure U Citizens’ Oversight Committee reviews the annual independent financial audit, and any other City financial reports necessary to advise the City Council of its findings on an annual basis.

MEASURE U REVENUE ASSUMPTIONS

MEASURE U TRANSACTION & USE TAX
Measure U revenues are affected by changes in the economy just like sales tax. Measure U projections are $26.3 million in 2026-27, and $26.6 million in 2027-28.

MEASURE U EXPENDITURE ASSUMPTIONS
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 expenditure projections for Measure U assume a continuation of spending items that were approved without a defined termination date. Measure U provides funding for 132.00 full-time equivalent (FTE) positions Citywide.

That is 18.8 percent of the workforce, or about one in every five FTE.

MEASURE U BY CATEGORY
Public Safety Youth Services Quality of Life
Total
Adopted
2026-27

DEPARTMENT
Police $ 11,978,954 $ - $ - $ 11,978,954
Fire 12,264,090 - - 12,264,090
Recreation & Parks 1,507,877 581,886 71,942 2,161,705
Library 61,864 559,675 31,650 653,189
Community Development - - 995,912 995,912
City Manager 20,211 - 203,260 223,471
Finance 2,669 - - 2,669
Total Operating $ 25,835,665 $ 1,141,561 $ 1,302,764 $ 28,279,990 91% 4% 5% 100%
The Police Department is supported 21.5 percent by Measure U. Most of these monies support a variety of sworn and non-sworn personnel. Many of these positions were formerly charged to the General Fund until it no longer had ongoing, sustainable revenue to support and maintain them. Without Measure U, the City would have to reduce staffing and programs. The Fire Department is supported 44.8 percent by Measure U. Through the support of Measure U, the Fire Department supports sworn and non-sworn personnel. The Recreation and Parks Department is supported 15.9 percent by Measure U, providing personnel and equipment for youth services and quality of life programs. Measure U funds are focused on support of the Mayor’s Task Force on Youth Safety. The Library is supported 11.7 percent by Measure City of Santa Maria 2026-28 Biennial Budget
Six-Year Financial Plans for General Fund & Measure U
68 U revenue. The City Manager’s Office receives a small amount of Measure U revenues to cover expenses for the City’s Mass Notification System. The Finance Department receives a small amount of Measure U revenues to cover expenses for the annual Measure U audit.

FUND RESERVES
The City Council has 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 a goal of a 20 percent reserve.

The chart below shows the Measure U forecast based on Measure U continuing to fund the same level of services. The forecast is unbalanced due to expenditures outpacing revenue growth, which means that Measure U sales tax revenue will be able to fund lower levels of service than in the current fiscal year.

The chart below shows the composition of the Measure U Fund fiscal forecast categories. $15,000
$17,000
$19,000
$21,000
$23,000
$25,000
$27,000
$29,000
$31,000
$33,000
$35,000
2020-21A 2021-22A 2022-23A 2023-24A 2024-25A 2025-26E 2026-27P 2027-28P 2028-29F 2029-30F 2030-31F 2031-32F MEASURE U FORECAST ($ IN '000'S)

ANNUAL SURP/(GAP)

CUMULATIVE GAP

REVENUES
USES
2019-20A 2020-21A 2021-22A 2022-23A 2023-24A 2024-25A 2025-26E 2026-27P 2027-28P Salaries & Benefits $13.476 $16.049 $16.770 $20.888 $24.802 $24.834 $24.319 $24.569 $25.211 Supplies & Services $0.996 $1.720 $2.225 $3.517 $2.420 $2.700 $3.883 $3.701 $3.701 Capital & Outside Agencies $0.791 $0.378 $0.106 $1.283 $1.782 $1.096 $2.518 $0.000 $0.000 Debt Service $0.000 $0.000 $0.000 $0.000 $0.013 $0.000 $0.000 $0.000 $0.000 Transfers $0.452 $0.308 $0.258 $1.778 $1.778 $1.245 $1.245 $0.010 $0.010 Total Expenditures $15.716 $18.455 $19.359 $27.465 $30.795 $29.875 $31.964 $28.280 $28.922 Total Revenues $19.550 $22.752 $25.560 $27.104 $26.886 $25.946 $26.260 $26.809 $27.341 $0
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$35 Measure U Revenues and Expenditures

MILLIONS
City of Santa Maria 2026-28 Biennial Budget
Enterprise Fund Overviews
69 WATER ENTERPRISE FUND FINANCIAL OVERVIEW
The Water Enterprise Fund is a restricted fund that is self-supported by funding all operating and capital expenses through charges (rates) collected for water service. Approved rates reflect both fixed and variable costs incurred by the City for the supply, treatment, and distribution of drinking water to City customers. The City monitors the health of the Water Enterprise Fund with a comprehensive rate model.

The rate model considers revenue requirements as well as the cost of service to ensure adequate funding for operating and capital infrastructure costs necessary to provide safe and reliable water service to the community.

In fiscal year 2023-24, the City engaged a third-party consultant to conduct an independent rate study and analysis of the Water Enterprise Fund. The study’s findings established cost-based and equitable water and sewer rates in compliance with California’s Proposition 218 rate setting process. The Santa Maria City Council approved the updated rates on October 17, 2023. The approved rate adjustments were implemented on January 1, 2024, January 1, 2025, and January 1, 2026, with authorization for a final adjustment effective January 1, 2027.

In September 2025, the City initiated an update to the water and sewer rate study to maintain compliance with cost-of-service principles and proportional rate requirements. The results of this update will inform future water and sewer rate adjustments.

NOTABLE FUND IMPACTS
The following requirements of the Water Fund have historically had the most significant impact on the Water Fund:

STATE WATER
 The City receives State Water from Central Coast Water Authority (CCWA). The costs to receive State Water from CCWA include expenses for the infrastructure to deliver the water as well as the costs for water treatment and delivery. CCWA provides estimated costs for inclusion in the City’s Budget.
 The City issued bonds to pay for portions of State Water infrastructure, in addition to local improvements for the delivery of State Water. The bond costs are also considered a portion of State Water Costs. The debt service for the bonds continues through fiscal year 2035-36.

CAPITAL IMPROVEMENT PROGRAM (CIP)
 The Capital Improvement Program (CIP) is a listing of long-term capital projects intended to address deficiencies and improvements needed for the City’s water system.  The rate model includes 3.5 percent annual increases in project costs for projects in the CIP Program.
 The City is in the process of conducting a comprehensive General Plan update, creating the master plan for Santa Maria’s growth over the next 25-30 years. The General Plan will inform future infrastructure needs related to providing water service to a growing community.

OPERATIONS AND MAINTENANCE (O&M)
 O&M is the cost of personnel, materials, and equipment required for the division to effectively function and operate.
 The rate model includes 4.5 percent annual increases for O&M expenses such as materials, supplies, equipment, and professional services, and 5 percent annual increases for existing staff’s salary and benefits, as well as estimated costs for projected additional staffing.  Unfunded pension liability projections provided by the California Public Employees’ Retirement System (CalPERS) are incorporated in the rate model.

City of Santa Maria 2026-28 Biennial Budget
Enterprise Fund Overviews
70 FUND OUTLOOK
The chart above illustrates forecasted expenses increasing in fiscal year 2025-26 primarily due to increased spending on capital projects.

REVENUE ASSUMPTIONS AND VARIANCES
 Forecasts include approved rate increases and a customer growth assumption of 0.50 percent per year.
 The City has a court-ordered agreement with Nipomo Community Services District (NCSD) to provide supplemental water to serve Nipomo customers. The City’s minimum quantity of supplemental water to deliver to NCSD increased from 1,000 to 2,500 acre-feet/year, resulting in increased revenues to the City in fiscal year 2025-26.

EXPENSE ASSUMPTIONS AND VARIANCES
• Budgeted expenses exceed prior actuals due to significant capital projects, including State Water Project costs, Well #15 construction, well reservoir rehabilitation, piping improvements and electrical upgrades at the blending and disinfecting facility, Corporation Yard consolidation, and the addition of a modular office to accommodate staff. These increases are in addition to higher O&M expenses related to equipment rentals, reservoir maintenance, a cybersecurity assessment, computerized maintenance management system, litigation, salary and benefits, and unfunded pension liability.
• Anticipated future capital projects include Groundwater Wells #16 & #17, and other capital projects that will be informed by the General Plan Update.

City of Santa Maria 2026-28 Biennial Budget
Enterprise Fund Overviews
71 WASTEWATER ENTERPRISE FUND FINANCIAL OVERVIEW
The Wastewater Enterprise Fund is a restricted fund that is self-supported by funding all operating and capital expenses through charges (rates) collected for the sewer collection and wastewater treatment service. Approved rates reflect costs incurred by the City to collect and treat domestic and industrial wastewater. This is accomplished by operating and maintaining a Grade 4 Wastewater Treatment Plant (WWTP) and ensuring treatable influent through the City’s pretreatment program. The City monitors the health of the Wastewater Enterprise Fund with a comprehensive rate model. The rate model considers revenue requirements as well as the cost of service to ensure adequate funding for operating and capital infrastructure costs necessary to provide wastewater service.

In fiscal year 2023-24, the City worked with a third-party consultant to conduct an independent rate study and analysis of the Wastewater Enterprise Fund. The findings of the study helped establish costbased and equitable rates for City customers in compliance with Proposition 218 rate setting procedures. Rates were approved by the City Council on October 17, 2023, and the first of four approved water rate increases was implemented on January 1, 2024.

NOTABLE FUND IMPACTS
The following requirements of the Wastewater Fund have historically had the most significant impact on the Wastewater Fund:

CAPITAL IMPROVEMENT PROGRAM (CIP)
 The CIP is a listing of long-term capital projects intended to address deficiencies and improvements needed for the City’s wastewater system.
 The rate model includes 3.5 percent annual increases in costs for projects in the CIP Program.  The City is in the process of conducting a comprehensive General Plan update, creating the master plan for Santa Maria’s growth over the next 25-30 years. The General Plan will inform future infrastructure needs related to providing wastewater service to a growing community.  In February 2022, the City’s WWTP enrolled under the Regional Water Quality Control Board’s General Permit (General Permit). The City’s WWTP today cannot meet all the requirements of the General Permit. Compliance with the General Permit will cause significant financial ramifications for the City and its ratepayers. The City is working with a technical firm to manage this significant program and its various components as well as to develop cash flow and funding scenarios. Compliance with the General Permit also necessitates the development of a new Wastewater Master Plan to include evaluation of treatment alternatives and feasibility studies.

The Wastewater Master Plan will then inform designs to modify the WWTP to treat wastewater to the standards required in the General Permit. The full scope of the modifications to the WWTP is not known currently. While it is not possible to accurately estimate the costs to achieve compliance, a program of this magnitude may have costs exceeding $600 Million. As the new Wastewater Master Plan is developed and the necessary improvements for compliance are identified, a better understanding of overall costs will be achieved, as well as strategies for funding those costs. Costs associated with this undertaking will be borne by the Wastewater Enterprise Fund. The rate model forecasts bond issuance for the WWTP upgrades beginning in fiscal year 2027-28.

OPERATIONS AND MAINTENANCE (O&M)
 O&M is the cost of personnel, materials, and equipment required for the division to effectively function and operate.
 The rate model includes 4.5 percent annual increases for O&M expenses such as materials, supplies, equipment, and professional services, and 5 percent annual increases for existing staff’s salary and benefits, as well as estimated costs for projected additional staffing.

City of Santa Maria 2026-28 Biennial Budget
Enterprise Fund Overviews
72  Unfunded pension liability projections provided by the California Public Employees’ Retirement System (CalPERS) are incorporated in the rate model.

FUND OUTLOOK
The chart above illustrates forecasted expenses increasing in fiscal year 2025-26 primarily due to increased spending on capital projects.

REVENUE ASSUMPTIONS AND VARIANCES
 Forecasts include approved rate increases and a customer growth assumption of 0.50 percent per year.

EXPENSE ASSUMPTIONS AND VARIANCES
• Budgeted expenses exceed prior actuals due to significant capital projects, including the WWTP upgrade to meet General Permit requirements, sewer trunk line capacity upgrades, system capacity study, citywide manhole survey, main boiler controls upgrade, trash capture devices, Corporation Yard Consolidation, and a modular office to accommodate staff. These increases are in addition to higher O&M expenses related to equipment rentals, computerized maintenance management system, digester condition assessment, water consumption (connections to the City’s system fiscal year 2025-26), salaries and benefits, and unfunded pension liabilities.
• Anticipated future capital projects include WWTP upgrade to meet General Permit requirements, sewer pipeline capacity projects identified in the Utilities Capacity Study as A-1, B-1, C-1, C-7, D-1, D-2, D-4, D-8, D-12, D-14, D-17, and other capital projects that will be informed by the General Plan Update.

City of Santa Maria 2026-28 Biennial Budget
Enterprise Fund Overviews
73 SOLID WASTE COLLECTIONS ENTERPRISE FUND FINANCIAL OVERVIEW The Solid Waste Collections Enterprise Fund is a restricted fund that is self-supported by funding all operating and capital expenses through charges (rates) collected for solid waste collections service.

Approved rates reflect costs incurred by the City to provide trash, mixed recycling, and organic collection services to Santa Maria residents and businesses. The City monitors the health of the Solid Waste Collections Enterprise Fund with a comprehensive rate model. The rate model considers revenue requirements as well as the cost of service to ensure adequate funding for operating and capital infrastructure costs necessary to provide service.

In fiscal year 2025-26, the City worked with a third-party consultant to conduct an independent rate study and analysis of the Solid Waste Collections Enterprise Fund. The findings of the study helped establish cost-based and equitable rates for City customers in compliance with Proposition 218 rate setting process. Proposed rates will be presented to the City Council on May 5, 2026. If approved, the first of four scheduled rates adjustments will be implemented on July 1, 2026.

NOTABLE FUND IMPACTS
The following requirements of the Solid Waste Collections Fund have historically had the most significant impact on the Solid Waste Collections Fund:

CAPITAL IMPROVEMENT PROGRAM (CIP)
 The CIP is a listing of long-term capital fleet purchases required for the City’s Solid Waste Collections system. Fully automated side-loading vehicles provide weekly trash collection of over 22,800 carts (65- or 95-gallons) five days a week and transport the waste to SMRL for disposal. Front-loading vehicles provide trash collection one to six days a week for more than 3,940 dumpsters (2-, 3-, 4-, or 6-cubic yard) and transport the waste to the Landfill for disposal.

On the heaviest days of the week, up to 20 refuse trucks are on the road providing collections service to the community.
 The rate model includes 3.5 percent annual increases in capital fleet purchases in the CIP Program.
 The City is in the process of conducting a comprehensive General Plan update, creating the master plan for Santa Maria’s growth over the next 25-30 years. The General Plan will inform future infrastructure needs related to providing Solid Waste Collections service to a growing community.

OPERATIONS AND MAINTENANCE (O&M)
 O&M is the cost of personnel, materials, and equipment required for the division to effectively function and operate.
 The rate model includes 4 percent annual increases for O&M expenses such as materials, supplies, equipment, and professional services, and 5 percent annual increases for existing staff’s salary and benefits, as well as estimated costs for projected additional staffing.  Unfunded pension liability projections provided by the California Public Employees’ Retirement System (CalPERS) are incorporated in the rate model.
 Also incorporated into the rate model are regulatory impacts from the State of California impacting solid waste collections, including Assembly Bill 341 Mandatory Commercial Recycling, Assembly Bill 1826 Mandatory Commercial Organics Recycling, and Senate Bill 1383 Short-Lived Climate Pollutant Reduction and regulatory impacts from the State of California related to street sweeping in compliance with the City’s MS4 Stormwater Permit.

City of Santa Maria 2026-28 Biennial Budget
Enterprise Fund Overviews
74 FUND OUTLOOK
The chart above illustrates forecasted expenses increasing in fiscal year 2025-26. This is primarily due to increased spending on capital fleet purchases.

REVENUE ASSUMPTIONS AND VARIANCES
 Forecasts include approved rate increases and a customer growth assumption of 0.5 percent per year.

EXPENSE ASSUMPTIONS AND VARIANCES
 Budgeted expenses are higher than previous actual expenses due to significant capital fleet purchases, including two automated side-loading vehicles, one front-loading vehicle, and one electric side-loading vehicle. These increases are in addition to higher O&M expenses associated with regulatory requirements, organic waste processing, disposal costs, Consumer Price Index (CPI) adjustments per agreements, salaries and benefits, and unfunded pension liabilities.
 Future capital projects will be informed by the General Plan Update and regulatory regulations requirements.

City of Santa Maria 2026-28 Biennial Budget
Enterprise Fund Overviews
75 SOLID WASTE DISPOSAL ENTERPRISE FUND FINANCIAL OVERVIEW The Solid Waste Disposal Enterprise Fund is a restricted fund that is self-supported by funding operating and capital expenses through revenues (tipping fees) generated at the Santa Maria Regional Landfill (SMRL). The SMRL is a Class III disposal facility with a current permitted disposal footprint of approximately 247 acres, and the remaining disposal capacity is estimated to be approximately six years.

In fiscal year 2023-24, the City worked with a third-party consultant to conduct an independent rate study and analysis of the Solid Waste Disposal Enterprise Fund. The findings of the study helped establish a multi-year financial model and tipping fee recommendations to continue to operate the SMRL in a financially responsible manner to cover operating, maintenance, and capital costs; reflect transfers to restricted reserves to meet regulatory requirements; and maintain a prudent operating reserve balance to ensure adequate cash is available for day-to-day operations and unexpected operating and capital cost increases. On November 18, 2025, new landfill fees were approved by the City Council effective January 1, 2026.

NOTABLE FUND IMPACTS
The following requirements of the Solid Waste Disposal Fund have historically had the most significant impact on the Solid Waste Disposal Fund:

CAPITAL IMPROVEMENT PROGRAM (CIP)
 The CIP is a listing of long-term capital projects intended to address regulatory requirements, deficiencies and improvements needed to operate the SMRL.  The rate model includes 2.5 percent annual increases in project costs in the CIP Program.

OPERATIONS AND MAINTENANCE (O&M)
 O&M is the cost of personnel, materials, and equipment required for the division to effectively function and operate.
 The rate model includes 3 percent annual increases for O&M expenses such as materials, supplies, equipment, and professional services, and 5 percent annual increases for existing staff’s salary and benefits, as well as estimated costs for projected additional staffing.  Unfunded pension liability projections provided by the California Public Employees’ Retirement System (CalPERS) are incorporated in the rate model.

City of Santa Maria 2026-28 Biennial Budget
Enterprise Fund Overviews
76 FUND OUTLOOK
The chart above illustrates forecasted expenses decreasing in fiscal year 2025-26 primarily due to decreased spending on capital projects.

REVENUE ASSUMPTIONS AND VARIANCES
 Forecasts include approved fee increases and a customer growth assumption of 0.5 percent per year.

EXPENSE ASSUMPTIONS AND VARIANCES
Budgeted expenses decrease in fiscal year 2024-25 due to significant capital projects being completed. The current financial forecast CIP includes funding for river mining activities in each of the next three fiscal years. These are in addition to increases in O&M expenses related to regulatory requirements, salary and benefits, unfunded pension liability, and Consumer Price Index (CPI) adjustments in accordance with agreements.
77 BUDGET OVERVIEW
City of Santa Maria 2026-28 Biennial Budget
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City of Santa Maria 2026-28 Biennial Budget
Budget Overview
79 OVERVIEW
On June 2, 2026, the City Council will deliberate a two-year budget comprised of $367.4 million for FY 2026-27 and $425.3 million for FY 2027-28, inclusive of a $50.0 million and $108.3 million capital project budget respectively. The table and charts below include expenditure budgets for the City’s major funds. Six-year plans are prepared for the General Fund and Measure U Fund; refer to the Six-Year Financial Plans section beginning on page 59.

NOTEWORTHY BUDGET HIGHLIGHTS
Each department’s budget under the Department Budget Detail section (beginning on page 185) contains a Noteworthy Budget Highlights section detailing significant changes within each department’s adopted budget as compared to the previously adopted budget.

CITYWIDE PROPOSED BUDGET SUMMARY
The following charts and tables present the citywide budget.

Fund FY 2026-27 FY 2027-28
General Fund $ 107,616,815 $ 109,226,765
Measure U Fund 28,279,990 28,922,230
Water Resources 84,947,013 121,415,541
Solid Waste 42,403,152 42,911,217
Public Transit 21,049,277 18,936,184
Total Major Funds $ 284,296,247 $ 321,411,937
Other Funds 83,130,217 103,909,022
Total Budget $ 367,426,464 $ 425,320,959
General Fund

25.7%
Other Funds

24.4%
Water
Resources

28.5%
Solid Waste

10.1%
Measure U

6.8%
Public Transit

4.5%
FY 2027-28
General Fund

29.3%
Other Funds

22.6%
Water
Resources

23.1%
Solid Waste

11.5%
Measure U

7.7%
Public
Transit

5.7%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
80 SOURCES OF FUNDING: GENERAL FUND
Sources of Funding: General Fund
Adopted
FY 2025-26
Per Capita
2025-26
Proposed
FY 2026-27
Per Capita
2026-27

REVENUE CATEGORY
Taxes $ 71,333,426 $ 645 $ 70,110,840 $ 620
Licenses, Permits & Fines 3,803,834 34 5,245,362 46
Revenues from Use of Money &
Property 2,976,515 27 3,380,615 30
Revenues from Other Agencies 606,881 5 603,013 5
Charges for Service 7,059,673 64 10,944,356 97
Other Revenues and Transfers 23,238,664 210 17,332,629 153 Total General Fund $ 109,018,993 $ 986 $ 107,616,815 $ 952 Population 110,608 113,041
Taxes

65.1%
Licenses, Permits &
Fines

4.9% Revenues from Use
of Money &
Property

3.1%
Revenues from
Other Agencies

0.6%
Charges for Service

10.2%
Other Revenues
and Transfers

16.1%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
81 SOURCES OF FUNDING: OPERATING FUNDS
Sources of Funding: Operating Funds
Adopted
FY 2025-26
Per Capita
2025-26
Proposed
FY 2026-27
Per Capita
2026-27

REVENUE CATEGORY
Taxes $ 97,672,757 $ 883 $ 96,748,160 $ 856
Licenses, Permits & Fines 4,173,834 38 5,615,362 50
Revenues from Use of Money &
Property 3,264,827 30 3,668,927 32
Revenues from Other Agencies 12,442,235 112 11,358,234 100 Charges for Service 7,927,439 72 11,813,522 105
Other Revenues and Transfers 31,048,846 281 21,443,145 190 Enterprise Fund Revenues 129,662,901 1,172 133,721,322 1,183 Total Operating Funds $ 286,192,839 $ 2,587 $ 284,368,672 $ 2,516 Population 110,608 113,041
Taxes

34.0%
Licenses, Permits &
Fines

2.0%
Revenues from Use
of Money &
Property

1.3%
Revenues from
Other Agencies

4.0%
Charges for Service

4.2%
Other Revenues
and Transfers

7.5% Enterprise Fund
Revenues

47.0%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
82 BUDGET BY CATEGORY: GENERAL FUND
Budget by Category: General Fund
Adopted
FY 2025-26
Per Capita
2025-26
Proposed
FY 2026-27
Per Capita
2026-27

EXPENDITURE CATEGORY
Salaries & Benefits $ 82,499,259 $ 746 $ 74,225,304 $ 657 Services & Supplies 26,238,113 237 27,633,109 244
Capital & Outside Agencies 2,431,000 22 849,794 8
Debt Service 266,911 2 266,912 2
Transfers 3,505,232 32 4,641,696 41
Total General Fund $ 114,940,515 $ 1,039 $ 107,616,815 $ 952 Population 110,608 113,041
Salaries & Benefits

69.0%
Services & Supplies

25.7%
Capital & Outside
Agencies

0.8%
Debt Service

0.2%
Transfers

4.3%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
83 BUDGET BY CATEGORY: OPERATING FUNDS
Budget by Category: Operating Funds
Adopted
FY 2025-26
Per Capita
2025-26
Proposed
FY 2026-27
Per Capita
2026-27

EXPENDITURE CATEGORY
Salaries & Benefits $ 141,642,834 $ 1,281 $ 128,321,146 $ 1,135 Services & Supplies 124,880,000 1,129 129,210,201 1,143 Capital & Outside Agencies 48,148,188 435 29,898,186 264 Debt Service 3,892,511 35 3,890,262 34
Transfers 11,295,317 102 12,312,215 109
Total Operating Funds $ 329,858,850 $ 2,982 $ 303,632,010 $ 2,686 Population 110,608 113,041
Salaries & Benefits

42.3%
Services & Supplies

42.6%
Capital & Outside
Agencies

9.8%
Debt Service

1.3%
Transfers

4.1%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
84 BUDGET BY FUNCTION: GENERAL FUND
Budget by Function: General Fund
Adopted
FY 2025-26
Per Capita
2025-26
Proposed
FY 2026-27
Per Capita
2026-27

FUNCTION
Public Safety $ 61,610,103 $ 557 $ 58,965,413 $ 522
Leisure & Cultural Services 13,518,353 122 11,427,290 101 Community & Economic
Development 6,880,630 62 7,506,049 66
General Government 32,931,429 298 29,718,063 263
Total General Fund $ 114,940,515 $ 1,039 $ 107,616,815 $ 952 Population 110,608 113,041
Public Safety

54.8%
Leisure & Cultural Services

10.6%
Community &
Economic
Development

7.0%
General Government

27.6%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
85 BUDGET BY FUNCTION: OPERATING FUNDS
Budget by Function: Operating Funds
Adopted
FY 2025-26
Per Capita
2025-26
Proposed
FY 2026-27
Per Capita
2026-27

FUNCTION
Public Safety $ 89,126,961 $ 806 $ 83,548,707 $ 739
Utilities 123,637,003 1,118 127,350,165 1,127
Public Ways & Facilities 49,421,428 447 32,237,987 285
Leisure & Cultural Services 23,808,297 215 20,590,295 182 Community & Economic
Development 9,505,107 86 8,900,951 79
General Government 34,360,054 311 31,003,905 274
Total Operating Funds $ 329,858,850 $ 2,982 $ 303,632,010 $ 2,686 Population 110,608 113,041
Public Safety

27.5%
Utilities

41.9%
Public Ways &
Facilities

10.6%
Leisure & Cultural
Services

6.8%
Community &
Economic
Development

2.9% General
Government

10.2%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
86 BUDGET BY PROGRAM: GENERAL FUND
Budget by Function: General Fund
Adopted
FY 2025-26
Proposed
FY 2026-27
Increase /
(Decrease)

DEPARTMENT
Mayor & Council $ 299,358 $ 326,664 $ 27,306
City Attorney 1,975,752 1,328,069 (647,683)
City Manager 13,031,048 10,726,733 (2,304,315)
Finance 11,411,833 11,994,728 582,895
Community Development 6,880,630 7,506,049 625,419
Recreation & Parks 13,518,353 11,427,290 (2,091,063)
Fire 15,281,873 15,102,589 (179,284)
Police 46,328,230 43,862,824 (2,465,406)
Public Works 6,213,438 5,341,869 (871,569)
Total General Fund $ 114,940,515 $ 107,616,815 $ (7,323,700) Mayor & Council

0.3%
City Attorney

1.2%
City Manager

10.0%
Finance

11.1%
Community
Development

7.0%
Recreation &
Parks

10.6% Fire

14.0%
Police

40.8%
Public Works

5.0%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
87 BUDGET BY PROGRAM: MEASURE U FUND
Budget by Function: Measure U Fund
Adopted
FY 2025-26
Proposed
FY 2026-27
Increase /
(Decrease)

DEPARTMENT
City Manager $ 251,401 $ 223,471 $ (27,930)
Finance 2,757 2,669 (88)
Community Development 953,525 995,912 42,387
Recreation & Parks 3,216,641 2,161,705 (1,054,936)
Fire 13,014,868 12,264,090 (750,778)
Police 14,161,740 11,978,954 (2,182,786)
Library 1,015,154 653,189 (361,965)
Total Measure U Fund $ 32,616,086 $ 28,279,990 $ (4,336,096) City Manager

0.8%
Finance

0.0%
Community
Development

3.5%
Recreation & Parks

7.6%
Fire

43.4%
Police

42.4% Library

2.3%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
88 BUDGET BY FUND: OPERATING FUNDS
Budget by Fund: Operating Funds
Adopted
FY 2025-26
Proposed
FY 2026-27

DEPARTMENT
General and Measure U $ 147,556,601 $ 135,896,805
Water Resources 81,278,603 84,947,013
Solid Waste 42,358,400 42,403,152
Public Transit 39,239,671 21,049,277
Radio/Technology 902,519 885,567
Library 5,208,149 5,583,111
Park Acquisition & Development 675,000 675,000
Residential Development Tax 175,000 90,000
Economic Development 130,000 130,000
County Measure A 10,181,757 11,188,710
Community Development Block
Grant 1,540,952 268,990
SM Community TV 271,948 174,135
Traffic Safety 340,250 340,250
Total Operating Funds $ 329,858,850 $ 303,632,010
General

44.8%
Water Resources

28.0%
Solid Waste

14.0%
Public Transit

6.9% Radio/Technology

0.3%
Library

1.8% Park Acquisition &
Development

0.2%
Residential
Development Tax

0.0%
Economic
Development

0.0%
County Measure A

3.7%
Community
Development Block
Grant

0.1%
SM Community TV

0.1%
Traffic Safety

0.1%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
89 FULL-TIME POSITIONS: ALL FUNDS
Full-Time Positions: All Funds
Adopted
FY 2025-26
Proposed
FY 2026-27

FUNCTION
Public Safety 286.80 284.80
Utilities 134.00 135.00
Public Ways & Facilities 74.80 70.00
Leisure & Cultural Services 127.40 114.20
Community & Economic
Development 33.00 31.00
General Government 85.60 68.80
Total All Funds 741.60 703.80
Public Safety

40.5%
Utilities

19.2%
Public Ways &
Facilities

9.9%
Leisure & Cultural
Services

16.2%
Community &
Economic
Development

4.4% General
Government

9.8%
FY 2026-27
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
90 GENERAL FUND PROGRAMMATIC COSTS
The following illustration breaks down every dollar spent in the General Fund by how much is allocated to each department. This includes Measure U appropriations.

Police Department: 41.1¢
Fire Department: 20.1¢
Recreation & Parks Department: 10.0¢
Finance Department: 8.8¢
City Manager’s Office: 8.1¢
Community Development
Department: 6.3¢
Public Works Department: 3.9¢
Library Department: 0.5¢
City Attorney, Mayor and City
Council: 1.2¢
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
91 WHAT $3.29 PER DAY PAYS FOR IN CITY SERVICES
Consumers watch the cost of everyday items closely. A ride on a City bus costs $1.50, gasoline is about $6 per gallon, a champurrado (hot drink) or a tamale about $3, and a gallon of milk about $4.60. By comparison, Santa Maria residents each pay about $3.29 per day for these City services:

Notes: This chart is based on the City spending $135.9 million in General Fund and Measure U appropriations. The Utilities Department is not reflected above as it operates as an Enterprise Fund and the Public Library receives County funds toward its operations.

Police Services: $1.35
Fire Services: 66.3¢
Recreation and Parks Services: 32.9¢
Finance: 29.1¢
City Manager, Human Resources, City Clerk,
Information Technology, and City Council services:

27.3¢
Community Development and Community Services
(and Animal Control contractual services): 20.6¢
City Attorney: 3.2¢
Public Library: 1.6¢
Public Works: 12.9¢
City of Santa Maria 2026-28 Biennial Budget
Budget Overview
92 This Page Intentionally Left Blank
93 REVENUE OVERVIEW
City of Santa Maria 2026-28 Biennial Budget
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City of Santa Maria 2026-28 Biennial Budget
Revenue Overview
95 REVENUE PROJECTION METHODS
The calculation of revenue estimates is the first step in the preparation of the Biennial Budget. Also essential to any budget is the development of economic assumptions. These are used to forecast changes to baseline revenue and expenditure levels to develop budget parameters.

Revenue estimates are prepared separately for each of the two fiscal years. For 2026-27 projections were based on 2025-26 mid-year revenues-to-date and emerging financial trends. Based on all available information, the City is projecting that in 2026-27 the General Fund and Measure U revenues will fall short of operational and capital expenses in each fund by $7.3 million and $1.5 million, respectively, for a combined total of $8.8 million. The City’s longstanding multimillion-dollar structural deficit has persisted since 2008-09. Staff will seek City Council direction to close the gap by using the Local Economic Augmentation Fund (LEAF) reserves.

SOURCES OF OPERATING REVENUE
The City of Santa Maria categorizes operating revenues into six major categories, each with distinct revenue characteristics. Operating revenues and transfers in are anticipated to be $284.4 million in FY 2026-27 and $279.1 million in FY 2027-28; excluding transfers in, operating revenues are expected to total $263.6 million in FY 2026-27 and $265.6 million in FY 2027-28. The following charts provide a breakdown of revenue by major revenue type.

TAXES
The Taxes revenue category includes Sales Tax, Measure U Transaction & Use Tax, Property Tax, Hotel/Bed Tax, Franchises, Business License, and Property Transfer. Data sources used to project these revenues include industry experts, current economic data, consultants, and historical revenue performance. The largest sources of taxes reside in the General Fund and Measure U, as listed in the following table.

LICENSES, PERMITS & FINES
Licenses, Permits & Fines revenue is received by the General Fund through the collection of charges designed to reimburse the City for costs of regulating activities being licensed, such as licensing of animals, bicycles, etc. and revenues received and/or bail monies forfeited upon conviction of a misdemeanor or municipal infraction. Information used to project revenues in this category includes industry experts, feedback from the development community, current economic data, and historical revenue performance.

Charges for
Service
$123.4 M

43.4%
Taxes
$96.7 M

34.0%
Revenues from
Other Agencies
$26.6 M

9.4%
Other Revenue
and Transfers
$25.9 M

9.1%
Rev. from Use
of Money &
Property
$6.1 M

2.2%
Licenses, Permits &
Fines
$5.6 M

2.0%
FY 2026-27
Charges for
Service
$124.0 M

44.4%
Taxes
$98.2 M

35.2%
Revenues from
Other Agencies
$26.9 M

9.6% Other Revenue
and Transfers
$18.7 M

6.7%
Rev. from Use
of Money &
Property
$5.8 M

2.1%
Licenses, Permits &
Fines
$5.6 M

2.0%
FY 2027-28
City of Santa Maria 2026-28 Biennial Budget
Revenue Overview
96 REVENUES FROM USE OF MONEY & PROPERTY
Revenues from Use of Money & Property include interest income, lease revenue, loan repayments.

Revenue projections are based on lease and rental contracts, historical trends, and any known factors.

REVENUES FROM OTHER AGENCIES
Revenues from Other Agencies come from other government agencies, primarily the state and federal governments. These revenues include general or categorical support, such as reimbursements for state mandates and mutual aid reimbursement. Intergovernmental revenue projections are developed by City departments and reviewed by Finance. Information used to project these revenues includes feedback from various state/federal agencies and historical revenue performance.

CHARGES FOR SERVICES
Charges for Services is the City’s largest revenue source and includes fees collected for utility services; library; transportation; parks and recreational services; and cost recovery fees. Revenue projections for Charges for Services are developed collaboratively by Finance and the City department administering the fee; projections are based on historical trends, economic factors, and current demand for services. Other information used to project these revenues include weather models, historical revenue performance, relevant economic factors, and projected increases due to new development.

Within the Charges for Services category, scheduled rate increases are incorporated into the City’s FY Biennial Budget.

OTHER REVENUES & TRANSFERS
Other Revenue includes operating transfers in, cost allocation transfers, and other miscellaneous revenue such as claims recovery and the sale of land, buildings, salvaged materials, and equipment.

Revenue projections are based on historical trends, and any known factors, such as the planned sale of property.

LANDSCAPE SERVICES, MITIGATION, & GRANT FUNDS

GROWTH MITIGATION
The Growth Mitigation Fund accounts for the receipts of developer fees as approved under the State of California Assembly Bill (AB) 1600. AB 1600 allows public agencies to charge developers for the incremental cost of services required by the new development. The use of AB 1600 fees and the need for public improvement must be related to the development. The City’s AB 1600 fees are “growth mitigation fees”, and are to pay for traffic, recreation and parks facilities, public safety facilities, and water/wastewater infrastructure.

ASSESSMENT DISTRICTS/LANDSCAPE SERVICES
Assessment Districts / Landscape Services revenue generally includes taxes generated in certain geographic areas of the City for specific purposes (e.g., landscape services, street lighting, and infrastructure needs). Information used to project these revenues includes levy revenues inclusive of projected adjustments and any cap on revenue established during the development of the special district, where applicable.

STOWELL PARKING & LIGHTING DISTRICT
The Stowell Parking and Lighting Fund is used to account for property tax revenues that are restricted to providing lighting and landscaping services to the Stowell Plaza Shopping Center. The Stowell Parking and Lighting Maintenance District was formed in 1961 for parking lot and landscaping maintenance of the Stowell Plaza Shopping Center. The maintenance work is performed by an City of Santa Maria 2026-28 Biennial Budget
Revenue Overview
97 independent contractor, with the City’s Recreation and Parks Department monitoring the contract and maintenance work. Stowell Plaza Shopping Center’s property owners pay an ad valorem tax.

GRANT FUNDS
The Supplemental Law Enforcement Service – COPS Fund accounts for the State of California’s COPS grant fund revenue that is restricted to support front-line law enforcement services with an emphasis on supporting salary and benefits. The City uses this revenue to match a Federal grant to pay for three officers.

The Federal/State Asset Forfeiture Fund accounts for all funds received through State and Federal agencies for drug seizures in which the City participates. These funds must be used to supplement, not supplant, the Police Department’s normal operating budget. The amount of revenue varies from year to year based on activity levels.

CAPITAL PROJECT FUNDS
The Capital Projects – General Fund is used to account for the purchase and construction of capital assets for the General Fund. Appropriations are made annually for the fund.

The Gas Tax and Transportation Development Act Fund is used to account for the City’s share of State and Santa Barbara County gasoline tax collected following the provisions of the State’s Streets and Highway Code. Revenues are disbursed by the State based on population and used toward maintenance and repair of City streets that serve as State and County thoroughfares. This fund is used for preventative annual maintenance of streets and appurtenant facilities and the construction of new public infrastructure within public rights-of-way. It is used for administrative, operational, materials, equipment, and labor costs for the construction of public infrastructure.

The Developer / Grant Street Projects – Fund is supported by specific street type grants and contributions by developers for the construction of streets and appurtenant facilities. Administrative, materials, equipment, and labor costs associated with street-related projects funded by sources other than gas tax or sales tax revenues are paid from this fund. Examples of public infrastructure built with developer and grant funds include roadway extensions, new bikeways, roadway operational improvements, and roadway safety enhancements.

City of Santa Maria 2026-28 Biennial Budget
Revenue Overview
98 SCHEDULE OF REVENUES
Secured $14,590,832

REVENUE BY FUND AND TYPE
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
GENERAL FUND (FD100)
Taxes
Secured $ 14,590,832 $ 15,279,738 $ 15,923,559 $ 16,568,044 $ 16,891,798 Unsecured 581,102 566,661 582,465 583,934 595,613
Property Tax In Lieu of VLF 11,551,634 12,149,234 12,381,572 12,381,572 12,381,572 Sales & Use 30,622,829 30,377,600 31,271,568 31,549,790 32,180,786 Sales & Use - Safety 355,789 385,727 394,157 394,157 394,157 Franchises 5,077,186 4,861,585 5,635,979 3,324,017 3,324,017 Transient Occupancy 4,021,568 4,001,343 4,023,430 4,023,430 4,023,430 Business License 842,388 894,213 809,800 975,000 975,000 Property Transfer 326,907 259,213 310,896 310,896 310,896 Total Taxes $ 67,970,235 $ 68,775,315 $ 71,333,426 $ 70,110,840 $ 71,077,269 Licenses, Permits & Fines
Construction Permits $ 3,636,811 $ 5,514,087 $ 3,649,974 5,012,202 5,012,202 Taxi & Mobile Home Fees 1,795 1,961 7,200 7,000 7,000
Criminal Fines & Penalties 118,553 248,425 146,660 226,160 226,160 Total Licenses, Permits &
Fines
$ 3,757,159 $ 5,764,474 $ 3,803,834 $ 5,245,362 $ 5,245,362 Revenue from Use of Money
& Property
Interest Earned $ 6,832,144 $ 5,344,802 $ 2,285,796 $ 2,575,796 $ 2,585,796 Rental Income 1,160,119 454,659 690,719 804,819 804,819 Total Revenue from Use of
Money & Property
$ 7,992,263 $ 5,799,461 $ 2,976,515 $ 3,380,615 $ 3,390,615 Revenues from Other
Agencies
Motor Vehicle License
Fees
$ 135,454 $ 174,397 $ 135,000 $ 135,000 $ 135,000
Homeowners' Tax Relief 47,991 47,692 50,416 50,416 50,416 Property Tax In Lieu 107,820 85,619 105,765 105,765 105,765 Mandated Costs 106,943 96,999 43,401 93,401 93,401
P.O.S.T. 64,529 69,041 150,000 100,000 100,000
Other Subventions 558,299 746,119 122,299 118,431 118,431 Total Revenues from Other
Agencies
$ 1,021,036 $ 1,219,867 $ 606,881 $ 603,013 $ 603,013
Charges for Services
Recreation Programs $ 262,228 $ 260,331 $ 196,260 $ 271,260 $ 271,260 Recreation Income 550,643 738,473 433,137 1,231,037 1,231,037 Aquatics 388,816 433,107 286,200 374,200 374,200
Zoning & Subdivision Fees 385,918 410,952 566,200 1,164,150 1,164,150 Law Enforcement 1,028,590 1,422,325 1,065,896 1,217,596 1,277,596 Fire Services 1,218,712 3,278,216 1,993,750 2,849,163 2,849,163 Engineering
Reimbursements
447,234 511,713 756,199 872,499 872,499
City of Santa Maria 2026-28 Biennial Budget
Revenue Overview
99 Secured $14,590,832

REVENUE BY FUND AND TYPE
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
Comm/Dev.

Reimbursements
520,415 662,683 503,400 1,142,500 1,142,500
Weed Abatement - - - - -
Services Rendered Other
Agencies
75 75 250 75 75
Engr. Plan Check &
Inspections
1,078,760 2,560,020 1,258,381 1,821,876 1,821,876
Impacted Soils 99,361 - - - -
Total Charges for Services $ 5,980,753 $ 10,277,895 $ 7,059,673 $ 10,944,356 $ 11,004,356 Other Revenue
Prior Year & Damage
Recovery
$ - $ 45 $ 3,000 $ 3,000 $ 3,000
Sale of Property - Real 4,873 3,984 4,250 4,250 4,250
Sale of Maps, Plans &
Others
58,619 100,910 107,330 212,830 210,830
Other Miscellaneous
Revenue
1,523,131 228,267 132,993 242,596 242,596
Total Other Revenue $ 1,586,623 $ 333,206 $ 247,573 $ 462,676 $ 460,676 Transfers In
Operating Transfers In $ 3,939,919 $ 1,939,528 $ 17,049,329 $ 9,898,138 $ 2,622,100 Cost Allocation Transfers 4,917,037 5,941,792 5,941,762 6,971,815 6,971,815 Total Transfers In $ 8,856,956 $ 7,881,320 $ 22,991,091 $ 16,869,953 $ 9,593,915 Subtotal General Fund $ 97,165,025 $ 100,051,538 $ 109,018,993 $ 107,616,815 $ 101,375,206 MEASURE U (FD110)
Measure U Transaction &
Use Tax
$ 25,656,492 $ 25,739,345 $ 26,339,331 $ 26,637,320 $ 27,170,066 Interest Income 290,617 206,990 171,354 171,354 171,354 Operating Transfers In - - 4,786,130 - -
Total Revenues & Transfers In $ 25,947,109 $ 25,946,336 $ 31,296,815 $ 26,808,674 $ 27,341,420 TOTAL GENERAL FUND $ 123,112,134 $ 125,997,874 $ 140,315,808 $ 134,425,489 $ 128,716,626 WATER RESOURCES (FD620 &
FD640)
Water Sales $ 44,900,548 $ 44,219,829 $ 49,150,770 $ 52,788,692 $ 53,118,845 Wastewater Charges 14,608,076 15,143,548 13,542,536 16,540,014 16,606,725 Connections &
Reimbursements
2,672,298 794,696 561,055 566,666 572,332
Interest Income 5,974,202 5,562,065 1,426,497 1,715,388 1,356,363 Other 1,776,973 1,164,594 1,053,290 1,204,825 1,215,464 Total Revenues & Transfers In $ 69,932,096 $ 66,884,732 $ 65,734,148 $ 72,815,585 $ 72,869,729 SOLID WASTE (FD630 &
FD610)
Charges for Service $ 34,454,002 $ 34,922,595 $ 38,165,777 $ 39,380,838 $ 39,484,258 Interest Income 2,166,790 2,213,194 720,094 416,741 386,997 City of Santa Maria 2026-28 Biennial Budget
Revenue Overview
100
Secured $14,590,832

REVENUE BY FUND AND TYPE
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
Other Income 1,782,022 293,364 155,272 227,793 227,795
State Grants 185,428 222,562 - - -
Total Revenues & Transfers In $ 38,588,242 $ 37,651,716 $ 39,041,143 $ 40,025,372 $ 40,099,050 PUBLIC TRANSIT (FD660 &
FD670)
Federal Grant - Operating $ 66,263 $ 133,475 $ 4,228,069 $ 5,247,153 $ 5,247,153 Federal Grant - Capital 3,241,963 183,040 9,803,637 4,500,000 4,500,000 State Gas Tax 5,830,308 (10,281,436) 6,963,619 7,289,919 7,289,919 Passenger Fares 638,714 683,085 696,461 660,839 660,839 Interest 478,612 268,378 325,965 316,015 316,015
Other 2,397,281 1,247,785 1,175,000 1,182,000 1,182,000 Total Revenues & Transfers In $ 12,653,141 $ (7,765,673) $ 23,192,751 $ 19,195,926 $ 19,195,926

RADIO/TECHNOLOGY FUND
(FD530)
Charges for Service $ 15,732, $ 15,732 $ 14,970 $ 14,970 $ 14,970 Interest Income - - 17,429 17,429 17,429
Operating Transfers In 1,461,070 1,435,570 1,662,460 1,652,040 1,652,040 Other - - - - -
Total Revenues & Transfers In $ 1,476,802 $ 1,451,302 $ 1,694,859 $ 1,684,439 $ 1,684,439 TOTAL ENTERPRISE FUNDS $ 93,415,517 $ 95,742,859 $ 109,523,134 $ 133,721,322 $ 133,849,144

SPECIAL REVENUE FUNDS
LIBRARY (FD490)
County Grants $ 1,717,361 $ 1,843,286 $ 2,555,534 $ 1,792,632 $ 1,792,632 State Grants 175,852 31,005
Charges for Service 369,380 224,489 171,263 172,663 172,663 Operating Transfers In 1,373,881 2,001,973 2,481,352 3,617,816 3,695,731 Total Revenues & Transfers In $ 3,636,474 $ 4,100,753 $ 5,208,149 $ 5,583,111 $ 5,661,026 TRAFFIC SAFETY (FD410)
Vehicle Code Fines $ 453,634 $ 482,426 $ 370,000 $ 370,000 $ 370,000 Total Revenues & Transfers In $ 453,634 $ 482,426 $ 370,000 $ 370,000 $ 370,000 PARK ACQUSITION (FD450)
Park Acquisition Fees $ 145,808 $ 578,724 $ 629,623 $ 629,623 $ 629,623 Total Revenues & Transfers In $ 145,808 $ 578,724 $ 629,623 $ 629,623 $ 629,623

RESIDENTIAL DEV TAX
(FD470)
Park Development Fees $ 95,364 $ 131,568 $ 66,880 $ 66,880 $ 66,880 Total Revenues & Transfers In $ 95,364 $ 131,568 $ 66,880 $ 66,880 $ 66,880 City of Santa Maria 2026-28 Biennial Budget
Revenue Overview
101
Secured $14,590,832

REVENUE BY FUND AND TYPE
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

ECONOMIC DEVELOPMENT
(FD471)
Loan Repayments $ 17,819 $ 14,484 $ 6,880 $ 6,880 $ 6,880 Total Revenues & Transfers In $ 17,819 $ 14,484 $ 6,880 $ 6,880 $ 6,880 COUNTY MEASURE A (FD468)
Sales Tax (County 1/2 % -
Meas A)
$ 6,890,064 $ 7,785,348 $ 7,714,737 $ 7,397,306 $ 7,648,735 Interest Income 515,865 608,785 105,950 105,950 105,950 Other 754,170 43,924 252,700 252,700 252,700
Total Revenues & Transfers In $ 8,160,098 $ 8,438,057 $ 8,073,387 $ 7,755,956 $ 8,007,385 CDBG (FD320)
CDBG Federal Grants $ 1,747,535 $ 1,605,638 $ 1,540,952 $ 1,540,952 $ 1,540,952 Program Income 34,507 42,538 24,131 24,331 24,331
Total Revenues & Transfers In $ 1,782,042 $ 1,648,176 $ 1,565,083 $ 1,565,283 $ 1,565,283 SM COMMUNITY TV (FD480)
Franchise Grant $ 236,908 $ 198,886 $ 240,000 $ 190,000 $ 190,000 PEG Access-Contributions 50,000 50,000 50,000 50,000 50,000 PEG-Program Revenue - - - - -
Interest Income 26,002 32,071 4,128 4,128 4,128
Total Revenues & Transfers In $ 312,910 $ 280,956 $ 294,128 $ 244,128 $ 244,128

TOTAL SPECIAL REVENUE
FUNDS
$ 13,496,724 $ 16,006,854 $ 14,975,436 $ 16,221,861 $ 16,551,205 TOTAL OPERATING FUNDS $ 260,366,563 $ 239,895,094 $ 286,192,839 $ 284,368,672 $ 279,116,975

LANDSCAPE SERVICES,

MITIGATION & GRANT FUNDS
Growth Mitigation $ 6,337,557 $ 3,848,397 $ 4,733,351 $ 4,733,351 $ 4,733,351 Landscape Services 7,084,072 8,170,306 7,249,393 7,268,893 7,268,893 Stowell Parking & Lighting
District
77,833 48,318 86,800 86,800 86,800
Grant Funds - - - - -
Total Landscape Services,
Mitigation & Grant Funds
$ 13,499,462 $ 12,067,022 $ 12,069,544 $ 12,089,044 $ 12,089,044

CAPITAL PROJECT FUNDS
General Fund Capital
Projects
$ 12,063,733 $ 4,402,289 $ 6,318,236 $ 849,794 $ 849,794 Gas Tax & Local
Transportation
5,730,555 5,996,337 6,066,045 6,499,289 6,497,467
Developer / Grant Street
Projects
8,684 5,155,661 10,743,480 10,807,545 10,743,480
City of Santa Maria 2026-28 Biennial Budget
Revenue Overview
102
Secured $14,590,832

REVENUE BY FUND AND TYPE
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
Total Capital Project Funds $ 17,802,972 $ 15,554,287 $ 23,127,761 $ 18,156,628 $ 18,090,741

INTERNAL SERVICE FUNDS
Fleet Services $ 14,202,660 $ 15,236,357 $ 10,989,715 $ 13,096,139 $ 13,096,139 Equipment 4,397,045 5,646,103 5,666,642 5,672,761 6,576,881 Local Economic
Augmentation Fund
3,643,472 - - - -
Insurance Funds 13,834,495 17,296,904 22,325,500 19,378,500 21,592,500 Total Internal Service Funds $ 36,077,672 % 38,179,364 $ 38,981,857 $ 38,147,400 $ 41,265,520 Total Revenues and
Transfers In
$ 327,746,670 $ 305,695,766 $ 360,372,001 $ 352,761,744 $ 350,562,280 103

EXPENDITURE OVERVIEW
City of Santa Maria 2026-28 Biennial Budget
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City of Santa Maria 2026-28 Biennial Budget
Expenditure Overview
105

CITYWIDE OVERVIEW
The City’s Biennial Budget totals $367.4 million in FY 2026-27 and $425.3 million in FY 2027-28, inclusive of capital, maintenance and equipment project budgets.

EXPENDITURE CATEGORIES

PERSONNEL
Personnel costs are the first largest spending category of the City and include salaries, benefits, workers compensation insurance, and retirement costs, including the CalPERS UAL.

Citywide personnel costs total $134.5 million in FY 2026-27 and $137.4 million in FY 2027-28, with Public Safety departments contributing nearly 50 percent of that amount for both fiscal years. In FY 2026-27, Measure U funds $24.6 million in City personnel costs, including $10.7 million of Police Department personnel costs and $10.3 of total Fire Department personnel costs.

CAPITAL & OUTSIDE AGENCIES

CAPITAL
In all, the Capital Projects Budget for the biennium consists of 52 capital projects representing approximately $158.3 million in appropriations. For comparison purposes, the 2024-26 Budget consisted of 64 capital projects totaling $115.9 million in appropriations.

The Capital Projects – General Fund has $1.5 million in capital expenditures for 2026-27 and $0.9 million for 2027-28.

OUTSIDE AGENCIES
The City contracts with the Santa Maria Valley Chamber of Commerce to facilitate community vitality through economic prosperity. This partnership focuses on the Chamber providing business support, attraction, and retention under the Economic Development Commission (since 2004) and tourism marketing through the Visitors Bureau (since at least 1978). The City’s 2024-25 and 2025-26 contributions toward the Economic Development Commission were $176,955 and $234,500, respectively.

The Santa Maria Valley Historical Society preserves the Santa Maria traditions important to the community and it is a resource to all City departments for projects and information. It offers free services to those it serves. The museum building was given to the City and the City maintains the building for use by the museum and Chamber of Commerce. There is a longer-term need to house these two functions in separate buildings as each has outgrown its respective portions of the building.

Salaries &
Benefits
$134.5 M

36.6%
Services &
Supplies
$169.7 M

46.2% Capital &
Outside
Agencies
$36.5 M

9.9%
Transfers
$22.9 M

6.2%
Debt Service
$3.9 M

1.1%
FY 2026-27
Salaries &
Benefits
$137.4 M

32.3%
Services &
Supplies
$194.0 M

45.6% Capital &
Outside
Agencies
$74.6 M

17.5%
Transfers
$15.7 M

3.7%
Debt Service
$3.6 M

0.9%
FY 2027-28
City of Santa Maria 2026-28 Biennial Budget
Expenditure Overview
106
In the fiscal year 2019-20, the Santa Maria Valley Historical Society was allocated $20,000 from the City.

For the fiscal year 2020-21, the Santa Maria Valley Historical Society requested $30,000 in annual funding from the City but due to budget constraints, the annual funding for 2020-22 was set at $18,600.

Given the structural deficit, staff is proposing to eliminate funding as of FY 2026-27.

The Santa Maria Museum of Flight serves as a preservationist of past, present, and future aerospace and aeronautical artifacts, historical documents, and memorabilia of the Santa Maria Valley. Its focus is on the right aviation history of the Santa Maria Valley; the museum is located at Santa Maria Airport.

The Museum received $20,000 in funding from the City in 2019-20 but none in 2020-22 after several attempts by the City to receive contractual financial information, as required by the contract.

Communication resumed in 2021 and the Museum received $20,000 in funding from the City in 2022-

26. Given the structural deficit, staff is proposing to eliminate funding as of FY 2026-27.

The Northern Santa Barbara County United Way, based in Santa Maria, operates the AmeriCorps/Home for Good Santa Barbara County program, to coordinate homeless outreach services in the City of Santa Maria. Funding was set at $22,320 in 2021-22. The program is transitioning from outreach and data collection to a focus on housing retention. To continue the partnership with Santa Maria, the recommended annual funding for each year was set at $30,000 since 2022-24. Given the structural deficit, staff is proposing to eliminate funding as of FY 2026-27.

DEBT SERVICE
The debt service budget includes current principal and interest obligations, fiscal charges, and other related costs. Estimated future debt service expenditures are based on the City’s debt repayment schedule. Actual debt obligations may vary from the budget due to variable interest rates and interest credits applied in the debt schedule.

City of Santa Maria 2026-28 Biennial Budget
Expenditure Overview
107

SCHEDULE OF EXPENDITURES
The following pages include the Schedule of Expenditures. Additional expenditure schedules by department are included in the Department Budget Detail section beginning on page 185.

SCHEDULE OF EXPENDITURES
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

GENERAL FUND AND

MEASURE U FUND
Salaries & Benefits $ 83,595,526 $ 92,092,283 $ 110,088,579 $ 98,794,202 $ 100,942,145 Services & Supplies 27,073,506 28,165,351 29,999,726 31,334,254 31,627,498 Total Operating Cost $ 110,669,032 $ 120,257,634 $ 140,088,305 $ 130,128,456 $ 132,569,643 Capital & Outside Agencies 4,533,739 3,186,548 2,451,000 849,794 849,794 Debt Service 301,356 266,912 266,911 266,912 -
Transfers 4,820,286 7,525,368 4,750,385 4,651,643 4,729,558 Total General Fund $ 120,324,413 $ 131,236,461 $ 147,556,601 $ 135,896,805 $ 138,148,995

MEASURE U BY CATEGORY
Public Safety $ 27,410,837 $ 26,265,035 $ 29,408,682 $ 25,835,665 $ 26,411,166 Youth Services 1,719,594 1,450,809 1,599,351 1,141,561 1,175,248 Quality of Life 1,664,516 2,159,455 1,608,053 1,302,764 1,335,816 TOTAL MEASURE U FUND $ 30,794,947 $ 29,875,299 $ 32,616,086 $ 28,279,990 $ 28,922,230

SUMMARY OF SERVICE

PROGRAMS
General Fund:

Mayor & Council $ 195,667 $ 210,789 $ 299,358 $ 326,664 $ 326,407 City Attorney 1,440,781 1,658,670 1,975,752 1,328,069 1,332,350 City Manager 9,298,929 10,645,606 13,031,048 10,726,733 10,789,993 Finance 9,678,960 12,838,550 11,411,833 11,994,728 12,141,474 Community Development 5,946,096 6,060,344 6,880,630 7,506,049 7,609,107 Recreation & Parks 12,473,101 13,094,522 13,518,353 11,427,290 11,545,473 Fire 10,246,402 12,040,173 15,281,873 15,102,589 15,190,668 Police 35,806,377 39,824,125 46,328,230 43,862,824 44,901,132 Public Works 4,443,156 4,988,384 6,213,438 5,341,869 5,390,161 Sub-Total General Fund $ 89,529,467 $ 101,361,162 $ 114,940,515 $ 107,616,815 $ 109,226,765 Police $ 12,167,830 $ 12,819,252 $ 14,161,740 $ 11,978,954 $ 12,360,235 Fire 13,206,285 11,576,844 13,014,868 12,264,090 12,437,722 Recreation & Parks 3,176,928 2,793,260 3,216,641 2,161,705 2,196,058 Library 1,196,792 982,789 1,015,154 653,189 673,111
Community Development 877,091 821,120 953,525 995,912 1,021,875 City Attorney 7,830 - - - -
City Manager 162,191 881,877 251,401 223,471 230,560
Finance 13,206,285 11,576,844 13,014,868 2,669 2,669
Sub-Total Measure U Fund $ 30,794,947 $ 29,875,299 $ 32,616,086 $ 28,279,990 $ 28,922,230 TOTAL GENERAL FUND $ 120,324,413 $ 131,236,461 $ 147,556,601 $ 135,896,805 $ 138,148,995 City of Santa Maria 2026-28 Biennial Budget
Expenditure Overview
108

SCHEDULE OF EXPENDITURES
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

OPERATING PROGRAMS
Salaries & Benefits $ 103,438,827 $ 114,917,735 $ 141,642,834 $ 128,321,146 $ 131,132,350 Services & Supplies 97,692,172 92,703,470 124,880,000 129,210,201 126,910,474 Total Operating Cost $ 201,130,999 $ 207,621,205 $ 266,522,834 $ 257,531,347 $ 258,042,824 Capital & Outside Agencies 11,486,505 23,448,283 48,148,188 29,898,186 66,405,524 Debt Service 1,637,495 3,889,012 3,892,511 3,890,262 3,625,350 Transfers 9,118,800 13,296,086 11,295,317 12,312,215 12,390,130 Total $ 223,373,800 $ 248.254.586 $ 329,858,850 $ 303,632,010 $ 340,463,828

SUMMARY OF SERVICE

PROGRAMS
General & Measure U $ 120,324,413 $ 131,236,461 $ 147,556,601 $ 135,896,805 $ 138,148,995 Water Resources 43,730,909 27,615,114 81,278,603 84,947,013 121,415,541 Solid Waste 34,939,060 50,137,815 42,358,400 42,403,152 42,911,217 Public Transit 9,544,284 20,109,851 39,239,671 21,049,277 18,936,184 Radio/Technology 923,961 784,184 902,519 885,567 886,055 Library 4,251,672 4,989,819 5,208,149 5,583,111 5,661,026 Park Acquisition &
Development
347,859 164,138 675,000 675,000 675,000
Residential Development
Tax
156,078 448,678 175,000 90,000 90,000
Economic Development 34,250 - 130,000 130,000 130,000
County Measure A 6,823,767 10,530,210 10,181,757 11,188,710 10,825,501 Community Development
Block Grant
1,753,196 1,692,929 1,540,952 268,990 268,990
SM Community TV 95,768 92,864 271,948 174,135 175,069
Traffic Safety 448,584 452,522 340,250 340,250 340,250
Total Operating Funds $ 223,373,800 $ 248,254,586 $ 329,856,850 $ 303,632,010 $ 340,463,828 Landscape Services,
Mitigation & Grant Funds
10,485,079 12,769,841 13,344,333 13,025,491 27,668,573
Capital Projects 15,290,565 15,343,836 23,280,097 10,968,349 18,313,442 Internal Service Funds 23,556,406 29,410,041 63,970,368 39,800,614 38,875,116 GRAND TOTAL $ 272,705,850 $ 305,778,304 $ 430,453,648 $ 367,426,464 $ 425,320,959 109

FUND & TRANSFER ANALYSIS
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FUND ANALYSIS
FUND ANALYSIS 2025-26
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FUND ANALYSIS 2026-27
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FUND ANALYSIS 2027-28
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TRANSFER ANALYSIS
Interfund Transfers represent a transfer of resources from one fund to another fund. The transfer appears as a resource in the fund receiving the transfer and as a budget requirement in the fund that is sending the transfer. The nature of interfund transfers causes revenue and expenditures to be double counted in the citywide budget; however, the inclusion of interfund transfers provides transparency to the performance of individual funds and the subsidies from one City fund to another.

COST ALLOCATION TRANSFER
The Cost Allocation Plan (CAP) facilitates the allocation of General Fund administrative service costs to the departments, programs, or funds that receive benefit from the services. For example, the budgets for internal service departments (such as Human Resoures) are allocated to public service departments (such as the Police Department and Public Works Department). The CAP uses various statistical data and is prepared in compliance with generally accepted accounting principles (GAAP) as recognized by the Governmental Accounting Standards Board (GASB) to distribute identified service costs appropriately.

COST ALLOCATION PLAN
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

COST ALLOCATION PLAN
Fund:

FD100 – General Fund $ 47,314 $ - $ - $ - $ -
FD620 – Water 419,602 733,873 733,873 1,055,066 1,055,066 FD630 – Solid Waste
Colletion
476,517 660,978 660,978 918,285 918,285
$408,794,522
FY 2027-28 Proposed
Appropriations excluding
Interfund Transfers
Provider Fund
Records Operating
Revenue from the normal
course of business
Records an Expense in the
form of a Transfer Out
(e.g., for its share of debt
payments)
Recipient Fund
Records Revenue (in the
form of a Transfer In)
received from another
fund
Records an Expense when
using the transferred funds
(e.g., to make a debt
payment)
Citywide Budget
Perspective
Outgoing resources
(Expenditures/Transfers Out)
are budgeted twice
Incoming resources
(Revenues/Transfers In)
are budgeted twice
$343,701,904
FY 2026-27 Proposed
Appropriations excluding
Interfund Transfers
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COST ALLOCATION PLAN
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

COST ALLOCATION PLAN
FD640 - Wastewater 373,650
431,214
431,214 719,013 719,013
FD560 – Fleet Services 199,639 301,651 301,651 469,142 469,142 FD490 - Library 534,979 832,047 832,047 1,481,140 1,481,140 FD610 – Solid Waste
Disposal
421,504 637,446 637,446 697,019 697,019
FD110 – Measure U 1,778,255 1,245,153 1,245,153 9,947 9,947 FD510 – Business Equipment - - - 106,169 106,169
FD520 – Communication
Equipment
- - - 24,717 24,717
FD530 – Radio Equipment 18,694 33,094 33,094 35,505 35,505 FD431 – Northwest
Landscape District
72,519 91,371 91,371 171,366 171,366
FD432 – Northeast
Landscape District
14,254 16,297 16,297 14,873 14,873
FD433 – Southwest
Landscape District
31,330 37,251 37,251 32,161 32,161
FD436 – Stowell Parking and
Lighting District
1,297 862 862 895 895
FD438 Southeast
Landscape District
26,913 24,825 24,825 21,803 21,803
FD463 - Gas Tax and
Transportation
Development Act Fund
9,492 4,935 4,935 7,039 7,039
FD660, FD670 - Public Transit
Funds
111,216 370,804 370,804 390,923 390,923
FD468 – Measure A Fund 267,990 351,402 351,402 685,718 685,718 FD570 – General Liability
Fund
- - - - -
FD585 – Workers’
Compensation Fund
75,180 132,803 132,803 67,369 67,369
FD540 – Telephone
Equipment Fund
4,659 5,036 5,036 4,752 4,752
FD480 - SM Community TV
Fund
32,511 30,750 30,750 58,913 58,913
TOTAL COST ALLOCATION $ 4,917,515 $ 5,941,792 $ 5,941,792 $ 6,971,815 $ 6,971,815

INTERFUND TRANSFERS AND LOANS
In adherence to grant requirements, GAAP, and public policy goals, the City has established various special revenue, capital project, debt service, and enterprise funds to account for revenues that are restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds, with its revenue sources, expenditures, and fund equity.

Transfers among funds for operating purposes are outlined in the two-year budget document and can only be made by the Director of Finance, following the adopted budget. These operating transfers, under which financial resources are transferred from one fund to another, are distinctly different from inter-fund borrowing, which are customarily made for temporary cash flow reasons, and are not intended to result in a transfer of financial resources by the end of the fiscal year. In summary, interfund transfers result in a change in fund equity; inter-fund borrowings do not, as the intent is to repay the loan in the near term.

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From time-to-time, interfund borrowings may be appropriate; however, these are subject to the following criteria to ensure that the fiduciary purpose of the fund is met:
• The Director of Finance is authorized to approve temporary inter-fund borrowings for cash flow purposes whenever the cash flow is expected to be resolved within 45 days. The most common use of this type of inter-fund borrowing is for grant programs such as Local Law Enforcement Block Grant Funds, where costs are incurred before drawdowns are initiated and received; and the receipt of funds is typically received shortly after the request for funds was made. • Other inter-fund borrowings, for cash flow or other purposes, are dealt with by a case-by-case review by the Director of Finance.

INTERFUND TRANSFER SCHEDULES
The following schedules of Interfund Transfers show the relationship of operating transfers between funds.

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TRANSFER ANALYSIS FY 2025-26
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TRANSFER ANALYSIS FY 2026-27
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TRANSFER ANALYSIS FY 2027-28
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FUND OVERVIEW
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BUDGETARY FUND BALANCE
In a governmental agency, fund balance is considered in two separate, but intrinsically related, settings – budgetary fund balance and Annual Comprehensive Financial Report (ACFR) fund balance.

Budgetary fund balance is a prospective calculation of ending fund balance based on estimated revenues and expenditures, whereas ACFR fund balance is a retrospective calculation based on the difference between fiscal year end assets and liabilities, and deferred inflows or outflows of resources.

Following the financial audit of the active fiscal year, budgetary ending fund balance is reconciled to ACFR fund balance, accounting for actual fiscal year performance and any differences in the budgetary versus accounting basis of reporting.

ACFR fund balance may be classified in one of five classifications defined in GASB Statement 54: Fund Balance Reporting and Governmental Fund Type Definitions as described below:
• Non-spendable Fund Balance: Cannot be spent due to form or must be maintained intact legally or contractually.
• Restricted Fund Balance: Subject to externally enforceable limitations by law, enabling legislation, or limitations imposed by creditors or grantors. • Committed Fund Balance: May only be used for specific purposes due to formal action of the City Council through adoption of a resolution prior to the end of the fiscal year. • Assigned Fund Balance: Reflects the City’s intended use of resources. • Unassigned Fund Balance: The residual classification that includes all spendable amounts not contained in the other classifications.

For the purposes of budgetary fund balance, the last three classifications listed above (Committed, Assigned, and Unassigned) are generally considered “available” fund balance, as these balances are not legally restricted by external parties or forces.

MAJOR FUNDS
On a budgetary basis, a major fund is defined as a fund whose total revenues or expenditures, excluding other financing sources and uses, exceed ten percent of citywide revenues or expenditures.

Under this basis, the City has three major funds:
• General Fund (including Measure U), which accounts for approximately 36 percent of citywide revenues and 38 percent of citywide expenditures in FY 2026-27 and 36 percent of citywide revenues and 32 percent of citywide expenditures in FY 2027-28. • Water Resources Funds account for approximately 22 percent of citywide revenues and 24 percent of citywide expenditures in FY 2026-27 and 22 percent of citywide revenues and 29 percent of citywide expenditures in FY 2027-28.
• Solid Waste Funds account for approximately 12 percent of citywide revenues and 12 percent of citywide expenditures in FY 2026-27 and 12 percent of citywide revenues and 10 percent of citywide expenditures in FY 2027-28.

The three major funds are described in the upcoming Fund Structure section.

FUNDS NOT BUDGETED
The City uses fiduciary agency funds to account for assets held by the City as trustee or agent for the benefit of individuals, other governments and/or other funds outside of the City. Fiduciary Agency funds are custodial, are not used to support City programs, and do not require measurement of results of operations. As such, fiduciary agency funds are not budgeted.

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FUND STRUCTURE
The City of Santa Maria’s (City) budget is made up of numerous funds. A fund is a separate accounting entity with a self-balancing set of accounts created to track specific revenue and expense activity.

All of the City’s funds are classified into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Agency Funds. Each category, in turn, is divided into separate “fund types”. Below is a graphical depiction of the budget fund structure:

Proprietary
Funds
Enterprise Funds
The Breeze
Public Transit
Radio Technology
Solid Waste
Wastewater
Water Resources
Internal Service Funds
Business Equipment
Communications
Equip.

Liability & Insurance
Local Economic
Augmentation
Mobile Equipment
(Fleet Services)
Telephone Equipment
Unemployment
Insurance
Governmental
Funds
Debt Service Funds
Financing Authority
2003 Lease Revenue
Bonds
Special Revenue
Funds
Drainage Funds
Economic Development
Fed/State Asset
Forfeiture
Gas Tax & Street Funds
Grant – non-recurring
Growth Mitigation
Landscape Districts
Library
Parking & Lighting
PEG Access Television
Police Grants
Quimby Park &
Acquisition
Residential Development
Tax
Special Districts
Traffic Safety
Capital Projects Funds
CIP – CDBG
CIP - General
General Fund
Measure U
Governmental Services
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GOVERNMENTAL FUNDS
Governmental funds are generally used to account for tax-supported activities. Because the focus for governmental funds is on current spendable resources, the balance sheets include only current assets and current liabilities. Governmental funds are accounted for on a modified accrual basis; thus, revenues are recognized when measurable and available, and expenditures are recorded when the related liability is incurred. Available means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Examples of such revenues include property tax, sales tax, and interest earnings. Expenditures are recognized when the fund liability is incurred. There are four different types of governmental funds used by the City.

GENERAL FUND
The General Fund is the City’s primary fund and accounts for all revenues and expenditures applicable to the general operations of the city government, which are not properly accounted for in another fund. These are activities and services traditionally associated with governments, such as police and fire, recreation and parks, and a city administration that is financed primarily through tax-generated revenues.

MEASURE U FUND
The Measure U Fund accounts for local transactions and use tax within the City of Santa Maria. City voters initially approved Measure U in the June 2012 election, enacting a one-quarter-cent general transactions and use tax. More recently, City voters in the November 2018 election extended and enhanced Measure U at the one-cent rate, to support essential City services. This general-purpose tax is used primarily to fund services such as police and fire, recreation and parks, library, and code enforcement. The Measure U Fund is combined with the General Fund for financial reporting purposes.

DEBT SERVICE FUNDS
Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Debt service revenues are derived from property taxes and other operating revenues.

SPECIAL REVENUE FUNDS
Special revenue funds are operating funds for which the use of revenues is restricted or designated by outside sources. These funds are used to account for the revenue derived from specific taxes or other earmarked revenue sources such as intergovernmental grants and contracts (other than for major capital projects) that are restricted by law or administrative action to expenditures for specific purposes.

CAPITAL PROJECT FUNDS
Capital project funds are used to account for construction or acquisition of general fixed assets and major improvements other than those financed by special assessments. Capital project funds of the City include general fund capital projects, gas tax, local transportation, growth mitigation, and developer/grant street projects.

PROPRIETARY FUNDS
Proprietary funds are financed and operated in a manner like private business enterprises where the intent is to recover the costs of providing goods and services from user charges. Proprietary funds focus on the determination of operating income, changes in net assets (or cost recovery), financial positions, and cash flows. Proprietary fund revenues and expenses are budgeted and accounted for on an accrual basis. Revenues are recognized in the period when earned and expenses are recognized when incurred. There are two different types of proprietary funds used by the City – enterprise funds and internal service funds.

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ENTERPRISE FUNDS
Enterprise funds are used to account for the operations and financing of self-supporting activities of the City that render services on a user charge basis to the public, similar to private business enterprises.

Enterprise funds of the City include water resources (covering water and wastewater services), refuse collections and disposal, and public transit operations.

INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of centralized services to different funds and City departments on a cost-reimbursement basis (including replacement costs). Internal service funds of the City include fleet maintenance and replacement, business equipment, liability and workers’ compensation insurance costs, and radio technology.

FIDUCIARY AGENCY FUNDS
The City uses fiduciary agency funds to account for assets held by the City as trustee or agent for the benefit of individuals, other governments, and/or other funds outside of the City. Fiduciary Agency funds are custodial, are not used to support City programs, and do not require measurement of results or operations. As such, fiduciary agency funds are not budgeted.

ENTERPRISE FUNDS
Enterprise Funds are used to account for activities that are financed and operated in a manner like private businesses. The City’s intent is that the operational and capital costs of providing these services be recovered primarily through user fees and charges.

The Santa Maria Utilities Department’s budget includes six Enterprise Funds:
• The Solid Waste Collection Fund accounts for all resources used for residential, commercial, agricultural, industrial solid waste collections, and recycling operations, including, but not limited to, administration, maintenance, and capital acquisition. • The Solid Waste Disposal Fund accounts for all resources used to provide solid waste disposal for residential, commercial, agricultural, and industrial users. This fund also supports the household hazardous waste collection operation at the City’s landfill. • The Landfill Closure/Post-Closure Fund accounts for the money necessary to close the City’s 247-acre landfill. The City is required by State and Federal laws and regulations to assure that the City will complete the closure and post-closure requirements of its landfill site. The City is required to report a portion of closure and post-closure costs as an operating expense. The operation of the landfill requires that the rolling closure of the landfill (closure in phases) continue on an annual basis.
• The Landfill Closure/Corrective Action Fund is used for the closure/post-closure corrective action for the Santa Maria Integrated Waste Management Facility (SMIWMF) at Los Flores Ranch, and fund operational and reporting requirements per CalRecycle. • The Water Fund accounts for all resources used to provide water services to the City, including, but not limited to, administration, operations, maintenance, capital acquisition and construction, debt service on the State Water Project, utility billing operations, water distribution costs, and other water-related operations.
• The Wastewater Fund accounts for all resources used to provide sewer service to residents and businesses within the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital acquisition and construction, and the billing and collection of fees associated with sewerrelated services.

The City Manager’s Office’s budget includes one Enterprise Fund:
• The Radio/Technology Fund accounts, and houses in one location, the cost and anticipated revenues associated with the City’s 700 MHz trunked radio communication system, and other City of Santa Maria 2026-28 Biennial Budget
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technology-related equipment that can be utilized by partnering with other municipalities and school districts.

The Public Works Department’s budget includes two Enterprise Funds:
• The Public Transit Fund accounts for all resources, including State and Federal funds, used to provide a regional public transportation service known as Santa Maria Regional Transit. All activities necessary to provide such transit-related services are accounted for in this fund, including, but not limited to, administration, operations, fixed-route and paratransit, facilities, maintenance, and capital acquisition and construction.
• The Breeze Fund accounts for all resources, including State and Federal funds, used to provide Breeze public transit service between Santa Maria and Lompoc, and Santa Maria, Buellton, and Solvang. All activities necessary to provide Breeze services are accounted for in this fund, including, but not limited to, administration, operations, fixed-route, facilities, maintenance, and capital acquisition and construction.

DEPARTMENT/FUND RELATIONSHIP
The following schedule displays departmental budgets within various funds.

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The following tables illustrate the relationship between the City’s departments and operating funds.

FY 2026-27 EXPENDITURES AND TRANSFERS OUT BY DEPARTMENT AND FUND City Department
General
Fund
Measure U
Fund
Enterprise
Funds
Special
Revenue
Funds Total
Mayor & Council $ 326,664 $ - $ - $ - $ 326,664
City Attorney 1,328,069 - - - 1,328,069
City Manager 10,726,733 223,471 885,567 174,135 12,009,906 Finance 11,994,728 2,669 1,565,876 130,000 13,693,273
Community Development 7,506,049 995,912 - 268,990 8,770,951 Library - 653,189 - 5,583,111 6,236,300
Recreation & Parks 11,427,290 2,161,705 - 765,000 14,353,995 Fire 15,102,589 12,264,090 - - 27,366,679
Police 43,862,824 11,978,954 - 340,250 56,182,028
Public Works 5,341,869 - 21,049,277 11,188,710 37,579,856 Utilities - - 125,784,289 - 125,784,289
TOTAL CITY APPROPRIATIONS $ 107,616,815 $ 28,279,990 $ 149,285,009 $ 18,450,196 $ 303,632,010 FY 2027-28 EXPENDITURES AND TRANSFERS OUT BY DEPARTMENT AND FUND City Department
General
Fund
Measure U
Fund
Enterprise
Funds
Special
Revenue
Funds Total
Mayor & Council $ 326,407 $ - $ - $ - $ 326,407
City Attorney 1,332,350 - - - 1,332,350
City Manager 10,789,993 230,560 886,055 175,069 12,081,677 Finance 12,141,474 2,669 1,596,646 130,000 13,870,789
Community Development 7,609,107 1,021,875 - 268,990 8,899,972 Library - 673,111 - 5,661,026 6,334,137
Recreation & Parks 11,545,473 2,196,058 - 765,000 14,506,531 Fire 15,190,668 12,437,722 - - 27,628,390
Police 44,901,132 12,360,235 - 340,250 57,601,617
Public Works 5,390,161 - 18,936,184 10,825,501 35,151,846 Utilities - - 162,730,112 - 162,730,112
TOTAL CITY APPROPRIATIONS $ 109,226,765 $ 28,922,230 $ 184,148,997 $ 18,165,836 $ 340,463,828 City of Santa Maria 2026-28 Biennial Budget
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The following tables illustrate the relationship between the City’s departments and funds with most managing programs in the General Fund.

FY 2026-27 EXPENDITURES AND TRANSFERS OUT BY DEPARTMENT AND FUND City Department
General
Fund
Measure U
Fund
Enterprise
Funds
Special
Revenue
Funds
Landscape,
Maint. Svcs. &
Mitigation
Other
Enterprise
Funds
Internal
Service Funds Total
Mayor & Council $ 326,664 $ - $ - $ - $ - $ - $ - $ 326,664 City Attorney 1,328,069 - - - - - 19,500,164 $20,828,233 City Manager 10,726,733 223,471 885,567 174,135 - - 4,316,638 16,326,544 Finance 11,994,728 2,669 1,565,876 130,000 - - 7,276,038 20,969,311 Community Development 7,506,049 995,912 - 268,990 - - - 8,770,951 Library - 653,189 - 5,583,111 - - - 6,236,300
Recreation & Parks 11,427,290 2,161,705 - 765,000 8,775,491 - - 23,129,486 Fire 15,102,589 12,264,090 - - - - - 27,366,679
Police 43,862,824 11,978,954 - 340,250 - - - 56,182,028 Public Works 5,341,869 - 21,049,277 11,188,710 3,250,000 10,968,349 8,707,774 60,505,979 Utilities - - 125,784,289 - 1,000,000 - - 126,784,289
TOTAL CITY APPROPRIATIONS $ 107,616,815 $ 28,279,990 $ 149,285,009 $ 18,450,196 $ 13,025,491 $ 10,968,349 $ 39,800,614 $ 367,426,464 FY 2027-28 EXPENDITURES AND TRANSFERS OUT BY DEPARTMENT AND FUND City Department
General
Fund
Measure U
Fund
Enterprise
Funds
Special
Revenue
Funds
Landscape,
Maint. Svcs. &
Mitigation
Other
Enterprise
Funds
Internal
Service Funds Total
Mayor & Council $ 326,407 $ - $ - $ - $ - $ - $ - $ 326,407 City Attorney 1,332,350 - - - - - 26,084,496 $27,416,846 City Manager 10,789,993 230,560 886,055 175,069 - - 4,112,838 16,194,515 Finance 12,141,474 2,669 1,596,646 130,000 - - - 13,870,789 Community Development 7,609,107 1,021,875 - 268,990 - - - 8,899,972 Library - 673,111 - 5,661,026 - - - 6,334,137
Recreation & Parks 11,545,473 2,196,058 - 765,000 8,811,573 - - 23,318,104 Fire 15,190,668 12,437,722 - - - - - 27,628,390
Police 44,901,132 12,360,235 - 340,250 - - - 57,601,617 Public Works 5,390,161 - 18,936,184 10,825,501 15,590,000 18,313,442 8,677,782 77,733,070 Utilities - - 162,730,112 - 3,267,000 - - 165,997,112
TOTAL CITY APPROPRIATIONS $ 109,226,765 $ 28,922,230 $ 184,148,997 $ 18,165,836 $ 27,668,573 $ 18,313,442 $ 38,875,116 $ 425,320,959 City of Santa Maria 2026-28 Biennial Budget
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LONG-TERM DEBT OBLIGATIONS
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DEBT TYPES AND PURPOSE
This section summarizes the debt service obligations of the City as of the beginning of the 2026-28 budget period (July 1, 2026). These obligations represent the City’s annual installment payments of principal and interest for previous capital improvement plan projects or acquisitions funded through debt financing. The following is a description of each lease or bond obligation existing on July 1, 2024. 2021A WATER AND WASTEWATER REVENUE REFUNDING BONDS
• Purpose: To refund 2012A Revenue Refunding Bonds
• Maturity Date: February 1, 2036
• Original Principal Amount: $ 35,685,000
• July 1, 2024, Principal Outstanding: $ 35,365,000
• Interest Rate: 3.9% Average
• Funding Source: Water and Wastewater Funds
On November 17, 2021, the City issued $35,685,000 of bonds to refund for savings the remaining outstanding principal amount of the City’s Water and Wastewater 2012A Revenue Refunding Bonds.

In 2012, the City issued $50,119,493 of bonds to refinance and restructure a portion of obligations issued in 1993 and 1997 which financed the construction of a transmission line to take delivery of State Water, the purchase of an additional 4,900 acre-feet of entitlement, and to acquire and construct certain water and wastewater facilities. The City decided to refund the 2012 bonds based on a tax-exempt current refunding with regular delivery. The refunding resulted in net present value savings of $11.54 million, or 26.3 percent of the value of the refunded bonds. The outstanding 2021A bonds have a final maturity of February 1, 2036, a weighted average remaining interest rate of approximately 3.9 percent, and are callable at the option of the City starting on February 1, 2031. 2013 EQUIPMENT LEASE FINANCING – MOBILE EQUIPMENT INTERNAL SERVICE FUND • Purpose: To issue tax-exempt lease financing to be used for the acquisition of vehicles and equipment for the Mobile Equipment Fund.
• Maturity Date: March 2025
• Original Principal Amount: $4,905,000
• July 1, 2024, Principal Outstanding: $303,211
• Interest Rate: 2.14% to 2.68%
• Funding Source: Mobile Equipment Fund
On March 22, 2013, the City entered into three lease agreements for the acquisition of vehicles and equipment for the Mobile Equipment Fund. The three leases have terms of 7, 10, and 12 years with interest rates ranging from 2.14 to 2.68 percent. Payments are due semi-annually under the terms of the lease agreements.
2017 EQUIPMENT LEASE FINANCING – GENERAL FUND
• Purpose: To issue tax-exempt lease financing to be used for the acquisition of a ComputerAided Dispatch and Records Management System (CAD RMS) for public safety departments. • Maturity Date: January 2027
• Original Principal Amount: $2,280,000
• July 1, 2024, Principal Outstanding: $1,227,500
• Interest Rate: 3.10%
• Funding Source: General Fund
On January 11, 2017, the City entered into a lease agreement for the acquisition of a computeraided dispatch and records management system (CAD RMS) for public safety. The lease has a term of term of 10 years with an interest rate of 3.10 percent. Payments are due semi-annually under the terms of the lease agreement.

City of Santa Maria 2026-28 Biennial Budget
Long-Term Debt Obligations
136

ANNUAL PAYMENTS BY SOURCE
2021A 2013 2017
Water &
Wastewater
Refunding
Revenue Bonds
Mobile Equipment –
Fleet Services
Capital Lease
General Fund
Capital Equipment
Lease
Fiscal Year Water Resources Fleet Fund General Fund Total 2027 $ 3,623,350 $ - $ 266,912 $ 3,890,262
2028 3,625,350 3,625,350
2029 3,626,100 3,626,100
2030 3,625,350 3,625,350
2031 3,622,850 3,625,350
2032 3,623,350 3,622,850
2033 3,622,750 3,623,350
2034 3,624,800 3,622,750
2035 3,623,850 3,624,800
2036 1,884,900 3,623,850
Total $ 34,502,650 $ - $ 266,912 $ 34,769,562
137

CAPITAL IMPROVEMENT PLAN,

MAINTENANCE, AND EQUIPMENT

PROJECTS
City of Santa Maria 2026-28 Biennial Budget
This Page Intentionally Left Blank
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 139

OVERVIEW
This Section is designed to provide appropriation authority for those capital projects identified in the Biennial Budget as well as provide an indication as to the planned projects for the first fiscal year.

Capital projects range from road maintenance or construction to the renovation of municipal buildings, recreation centers and ball fields, to water main and sewerage system replacement. This Section aligns capital project requirements to the financial sources that will support their realization and the timeframe in which both the financing and work will take place. Capital improvement projects typically have a life span of several years and therefore carry considerable future impact. The first two years of the Capital Improvement Plan (CIP) are approved by the City Council with the adoption of the Biennial Budget, while the following years are subject to future Council approval. However, individual capital projects and their estimated budgets may also be approved by separate City Council action throughout the fiscal year, allowing the planned appropriations to be carried forward each year until project completion.

Recommended funding for new capital
projects is based on departmental priorities.

Additionally, all projects submitted by
departments were subject to review against
the following criteria: 1) additional funds
needed to make committed projects
operational; 2) required to meet a legal or
policy mandate; 3) required to improve
unacceptable health and/or safety concerns;
4) required to maintain existing facilities or
assets; 5) required to maintain existing service
levels; 6) reduces other City costs; 7) will
enhance and maximize operational
efficiencies; and, 8) other justifications to merit
consideration.

CAPITAL FINANCIAL & BUDGET POLICIES

OTHER DESIGNATIONS AND RESERVES
In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years, which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designation required by contractual obligations, State law, or GAAP requirements.

CAPITAL MAINTENANCE EQUIPMENT PROJECT (CMEP) PURPOSE
The purpose of the Capital Improvement Project (CIP), Maintenance, and Equipment Project (CIPMEP) is to systematically plan, schedule, budget, and finance capital projects to ensure cost effectiveness and efficiency of construction.

General Fund CIP-MEPs will be budgeted in the Capital Projects – General Fund, while Enterprise and Internal Service Fund CIP-MEPs will be budgeted in the individual funds.

The CIP-MEP is a four-year plan organized into the same functional groupings used for the operating programs. Because the four-year plan is a planning tool rather than a budgeting tool, only two years of CIP-MEPs are reported in the two-year Capital Improvement Project section of the budget. The CIPMEP, reported in the two-year budget, reports the responsible fund, the year funding will be appropriated, funding sources, and totals by category (Public Safety, Public Utilities, Public Ways and Facilities, etc.).

City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 140
CMEP - $5,000 OR MORE
Construction projects and equipment purchases, that cost $5,000 or more, will be included in the Capital Improvement Projects section of the budget, while minor capital outlays of less than $5,000 will be included within the operating program budgets.

CMEP REVIEW
The City Manager’s Office, in combination with the Public Works and Finance Departments, will review the project proposals and determine a listing of projects for the two-year budget document. CIP-MEP projects that were approved in the prior budget but that did not start by the end of the calendar year are ineligible for carryover to the new budget.

CMEP BUDGET OVERVIEW
In all, the CIP-MEP Budget for this biennium consists of 52 capital projects representing approximately $158.3 million in appropriations, comprised of $50.0 million in projects in the first year and $108.3 million in the second year. For comparison purposes, the previous Biennial Budget consisted of 64 capital projects totaling $115.9 million in appropriations.

The adopted Mobile Equipment
Replacement and Expansion
budget for the biennium calls for 38
pieces of equipment to be
replaced reflecting $12.8 million in
appropriations.

Funding for planned capital
improvement projects is largely
provided by bond proceeds,
transportation funds, grants, user
fees or rates, and Measure U;
however, a strategic use of cash
reserves will provide funding for
some projects.

Capital projects are categorized
into the six broad categories of
Public Safety, Public Utilities, Public
Ways & Facilities, Public Transit
Leisure & Cultural Services, and
General Government to denote
the general area of impact. Five
departments have planned
capital projects in the Biennial
Budget.

On the following pages is a matrix
summarizing the Capital
Improvement Program, including
funding requirements, as well as
the Mobile Equipment and
Replacement inventory.

FUNDING SOURCES AND USES
Proposed
FY 2026-27
Proposed
FY 2027-28
Funding Sources
Capital Projects – General Fund $ 1,465,294 $ 849,794
Gas Tax & Transportation
Development Act Fund 5,897,.407 6,165,748
Growth Mitigation Fund 4,250,000 18,857,000
Residential Development Tax Fund 90,000 90,000
Measure A Fund 3,516,483 3,094,510
Public Transit Fund 8,255,000 5,500,000
Water Fund 7,758,000 24,547,000
Wastewater Fund 12,775,220 35,742,430
Developer / Grant Street Projects
Fund
3,001,029 10,693,281
Fleet Services Fund 976,121 922,517
Solid Waste Disposal Fund 995,000 900,000
Quimby-Park Acquisition &
Development Fund
675,000 675,000
Landscape District Fund 300,000 300,000
Total Funding Sources $ 49,954,554 $ 108,337,280
Funding Uses
Public Safety $ 408,621 $ 922,517
Public Utilities 23,023,220 64,456,430
Public Ways & Facilities 16,880,478 36,393,333
Public Transit 8,327,500 5,500,000
Leisure & Cultural Services 1,065,000 1,065,000
General Government 249,735 -
Total Funding Uses $ 49,954,554 $ 108,337,280
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 141

RECURRING/NONRECURRING CAPITAL PROJECTS
The City’s CIP-MEP includes capital projects that are recurring or nonrecurring in nature. Recurring projects are those that are commonly included in each CIP-MEP and do not have a significant impact on the operating budget. Projects of this type are typically infrastructure improvements or maintenance funded from reliable sources, such as gas tax funds or user fees. Nonrecurring projects are unique, one-time projects, such as the construction of new buildings or plants, which will often result in an ongoing operating financial impact, or replacement of aging infrastructure, which should reduce overall operating costs.

Nonrecurring projects are indicated in the Capital Improvement Projects List.

CAPITAL IMPROVEMENT PROJECTS LIST
The following schedule lists all Capital Improvement Projects anticipated to be funded and are categorized into the six broad categories of Public Safety, Public Utilities, Public Ways & Facilities, Public Transit, Leisure & Cultural Services, and General Government to denote the general area of impact.

Table Legend: = Nonrecurring Project
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 142

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total

PUBLIC SAFETY CAPITAL PROJECTS
FLEET REPLACEMENT: POLICE
No. of Vehicles/Year: 2026-27: 5; 2027-28: 11;
2028-29: 12; 2029-30: 11
✔
Fleet Services Fund 408,621 825,410 1,030,693 1,003,383 3,268,107 Total 408,621 825,410 1,030,693 1,003,383 3,268,107
FLEET REPLACEMENT: FIRE
No. of Vehicles/Year: 2027-28: 1; 2029-30: 2
✔
Fleet Services Fund - 97,107 - 1,350,000 1,447,107
Total - 97,107 - 1,350,000 1,447,107
Public Safety Total Appropriation $ 408,621 $ 922,517 $ 1,030,693 $ 2,353,383 $ 4,715,214 Funding Sources
Fleet Services Fund $ 408,621 $ 922,517 $ 1,030,693 $ 2,353,383 $ 4,715,214 Public Safety Total Funding $ 408,621 $ 922,517 $ 1,030,693 $ 2,353,383 $ 4,715,214

PUBLIC UTILITIES CAPITAL PROJECTS
WATER
NEW WATER SUPPLY WELL #16 ✔
f
Growth Mitigation Fund 1,000,000 3,267,000 - - 4,267,000 Water Fund - 6,133,000 - - 6,133,000
Total 1,000,000 9,400,000 - - 10,400,000
WELL MAINTENANCE – REHAB

STANDARDIZATION FOR WELLS
Water Fund 600,000 600,000 600,000 600,000 2,400,000
Total 600,000 600,000 600,000 600,000 2,400,000
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 143

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total
WELL #17 ✔
Water Fund 1,000,000 9,400,000 - - 10,400,000
Total 1,000,000 9,400,000 - - 10,400,000
SOLAR BEES ✔
Water Fund 158,000 - - - 158,000
Total 158,000 - - - 158,000

BLENDING DISINFECTION FACILITY (BDF)

IMPROVEMENTS AND UPGRADES
✔
Water Fund 550,000 5,900,000 - - 6,450,000
Total 550,000 5,900,000 - - 6,450,000
RESERVOIR IMPROVEMENTS ✔
Water Fund 200,000 2,004,000 - - 2,204,000
Total 200,000 2,004,000 - - 2,204,000
RESERVOIR REHABILITATION ✔
Water Fund 4,000,000 - - - 4,000,000
Total 4,000,000 - - - 4,000,000
SCADA IMPROVEMENTS ✔
Water Fund - 250,000 - - 250,000
Total - 250,000 - - 250,000

DEWATERING PIT CROSS CONNECTION

CONTROL
Water Fund 355,000 260,000 260,000 260,000 1,135,000
Total 355,000 260,000 260,000 260,000 1,135,000

SECOND MODULAR AT THE WASTEWATER

TREATMENT PLANT (WWTP)
✔
Water Fund 270,000 - - - 270,000
Wastewater Fund 270,000 - - - 270,000
Total 540,000 - - - 540,000
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 144

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total

FLEET REPLACEMENTS
No. of Vehicles/Year: 2026-27: 2; 2028-29: 2
Fleet Services Fund 145.000 - 156,832 - 301,832
Total 145,000 - 156,832 - 301,832

FLEET EXPANSION
No. of Vehicles/Year: 2026-27: 4
Water Fund 625,000 - - - 625,000
Total 625,000 - - - 625,000

WASTEWATER

GENERAL WASTE DISCHARGE REQUIREMENTS

COMPLIANCE
✔
Wastewater Fund 11,080,350 34,371,570 37,064,960 20,770,420 103,287,300 Total 11,080,350 34,371,570 37,064,960 20,770,420 103,287,300

THE PURCHASE AND INSTALLATION OF TRASH

CAPTURE DEVICES THROUGHOUT THE CITY'S
DRAINAGE SYSTEM; VARIOUS LOCATIONS
Wastewater Fund 328,040 341,160 353,100 365,460 1,387,760 Total 328,040 341,160 353,100 365,460 1,387,760
SEWER LINE UPGRADES – SEWER MANHOLE

PROGRAM
Wastewater Fund 196,830 204,700 211,870 219,280 832,680 Total 196,830 204,700 211,870 219,280 832,680
SEWER LINE REPLACEMENT – N. BROADWAY ✔
Wastewater Fund 150,000 750,000 - - 900,000
Total 150,000 750,000 - - 900,000

CALIFORNIA AIR RESOURCE BOARD (CARB)

LANDFILL METHANE REGULATION

COMPLIANCE EQUIPMENT
✔
Wastewater Fund 95,000 - - - 95,000
Total 95,000 - - - 95,000
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 145

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total
SEWER LINE REPLACEMENT – S. LINCOLN
STREET
✔
Wastewater Fund 500,000 - - - 500,000
Total 500,000 - - - 500,000

MAIN BOILER GAS TREATMENT AND

CONTROLS UPGRADE
✔
Wastewater Fund 250,000 - - - 250,000
Total 250,000 - - - 250,000
SEWER LINE REPLACEMENT – N. WESTERN
AVENUE
✔
Wastewater Fund - 75,000 600,000 - 675,000
Total - 75,000 600,000 - 675,000

FLEET REPLACEMENTS
No. of Vehicles/Year: 2026-27: 1; 2028-29: 2
Fleet Services Fund 350,000 - 978,416 - 1,328,416
Total 350,000 - 978,416 - 1,328,416

SOLID WASTE

FLEET REPLACEMENTS
No. of Vehicles/Year: 2028-29: 1; 2029-30: 7
Fleet Services Fund - - 78,416 3,650,000 3,728,416
Total - - 78,416 3,650,000 3,728,416

LANDFILL
RIVER MINING ✔
Solid Waste Disposal Fund 900,000 900,000 900,000 - 2,700,000 Total 900,000 900,000 900,000 - 2,700,000

FLEET REPLACEMENTS
No. of Vehicles/Year: 2028-29: 1
Fleet Services Fund - - 110,000 - 110,000
Total - - 110,000 - 110,000
Public Utilities Total Appropriations $ 23,023,220 $ 64,456,430 $ 41,313,594 $ 25,865,160 $ 154,658,404 Funding Sources
Water Fund $ 7,758,000 $ 24,547,000 $ 860,000 $ 860,000 $ 34,025,000 City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 146

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total
Wastewater Fund 12,775,220 35,742,430 38,229,930 21,355,160 108,102,740 Solid Waste Disposal Fund 995,000 900,000 900,000 - 2,795,000 Fleet Services Fund 495,000 - 1,323,664 3,650,000 5,468,664 Growth Mitigation Fund 1,000,000 3,267,000 - - 4,267,000 Public Utilities Total Funding $ 23,023,220 $ 64,456,430 $ 41,313,594 $ 25,865,160 $ 154,658,404

PUBLIC WAYS & FACILITIES CAPITAL

PROJECTS
HVAC REPLACEMENT ✔
Capital Projects - General Fund 585,500 - - - 585,500
Total 585,500 - - - 585,500
MISCELLANEOUS DRAINAGE IMPROVEMENTS ✔
Developer / Grant Street Projects Fund 959,752 - - - 959,752 Total 959,752 - - - 959,752
ACTIVE TRANSPORTATION PLAN ✔
Gas Tax & Transportation Development Act
Fund 350,000 350,000 350,000 350,000 1,400,000
Developer / Grant Street Projects Fund 1,200,000 8,823,153 - - 10,023,153 Total 1,550,000 9,173,153 350,000 350,000 11,423,153

ALTERNATIVE TRANSPORTATION

ENHANCEMENTS
✔
Measure A Fund 1,259,596 1,297,310 1,342,167 1,387,806 5,286,879 Total 1,259,596 1,297,310 1,342,167 1,387,806 5,286,879 BICYCLE SAFETY AND OUTREACH PROGRAM ✔
Measure A Fund 31,000 31,000 31,000 31,000 124,000
Total 31,000 31,000 31,000 31,000 124,000

HIGHWAY SAFETY IMPROVEMENT PROGRAM
(HSIP) GRANT FUND
Developer / Grant Street Projects Fund 500,000 1,567,200 - - 2,067,200 Total 500,000 1,567,200 - - 2,067,200
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 147

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total

HIGHWAY SAFETY IMPROVEMENT PROGRAM
(HSIP) INTERSECTION IMPROVEMENTS
Gas Tax & Transportation Development Act
Fund 60,000 431,720 60,000 60,000 611,720
Total 60,000 431,720 60,000 60,000 611,720

ENHANCED ROADWAY MAINTENANCE
Capital Projects - General Fund 849,794 849,794 849,794 849,794 3,399,176 Gas Tax & Transportation Development Act
Fund 4,132,407 4,279,028 4,432,979 4,594,628 17,439,043 Developer / Grant Street Projects Fund 291,277 302,928 315,045 327,647 1,236,897 Measure A Fund 1,500,000 1,500,000 1,500,000 1,500,000 6,000,000 Total 6,773,478 6,931,750 7,097,818 7,272,069 28,075,116

PUBLIC WORKS OPERATIONS EXPANSION

DESIGN & BUILDING
✔
Growth Mitigation Fund 2,500,000 2,340,000 - - 4,840,000 Total 2,500,000 2,340,000 - - 4,840,000
US 101/BETTERAVIA ROAD INTERCHANGE –

PROJECT STUDY REPORT
✔
Growth Mitigation Fund 250,000 1,000,000 1,000,000 - 2,250,000 Total 250,000 1,000,000 1,000,000 - 2,250,000
US 101/SR 166 MAIN STREET – PROJECT STUDY
REPORT
✔
Growth Mitigation Fund - 2,500,000 - - 2,500,000
Total - 2,500,000 - - 2,500,000
US 101/STOWELL ROAD INTERCHANGE –

PROJECT STUDY REPORT
✔
Growth Mitigation Fund - 2,500,000 - - 2,500,000
Total - 2,500,000 - - 2,500,000
US 101/BATTLES ROAD INTERCHANGE –

PROJECT STUDY REPORT
✔
Growth Mitigation Fund - 2,500,000 - - 2,500,000
Total - 2,500,000 - - 2,500,000
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 148

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total

ANNUAL STREETLIGHT UPGRADE
Measure A Fund 199,650 199,650 199,650 199,650 798,600
Total 199,650 199,650 199,650 199,650 798,600

ASPHALT REPLACEMENT
Gas Tax & Transportation Development Act
Fund 500,000 500,000 500,000 500,000 2,000,000
Total 500,000 500,000 500,000 500,000 2,000,000

RIGHT-OF-WAY SUPPLIES
Gas Tax & Transportation Development Act
Fund 125,000 125,000 125,000 125,000 500,000
Total 125,000 125,000 125,000 125,000 500,000

STREET LIGHT PROGRAM
Gas Tax & Transportation Development Act
Fund 230,000 230,000 230,000 230,000 920,000
Total 230,000 230,000 230,000 230,000 920,000

TRAFFIC SIGNAL MAINTENANCE PROGRAM
Gas Tax & Transportation Development Act
Fund 100,000 100,000 100,000 100,000 400,000
Total 100,000 100,000 100,000 100,000 400,000

CITYWIDE LANDSCAPE MAINTENANCE
Gas Tax & Transportation Development Act
Fund 400,000 400,000 400,000 400,000 1,600,000
Measure A Fund 60,500 66,550 73,155 80,470 280,676
Total 460,500 466,550 473,155 480,471 1,880,676
HIGHWAY 101/135 INTERCHANGE ✔
Growth Mitigation Fund 500,000 4,500,000 4,500,000 10,000,000 19,500,000 Total 500,000 4,500,000 4,500,000 10,000,000 19,500,000 CITY-OWNED HOUSE MAINTENANCE ✔
Capital Projects - General Fund 30,000 - - - 30,000
Total 30,000 - - - 30,000
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 149

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total

BRIDGE PREVENTATIVE MAINTENANCE

PROGRAM
✔
Developer / Grant Street Projects Fund 50,000 - - - 50,000 Total 50,000 - - - 50,000
FLEET REPLACEMENTS: PUBLIC WORKS
No. of Vehicles/Year: 2028-29: 3; 2029-30: 22
Fleet Services Fund - - 243,000 435,000 678,000
Total - - 243,000 435,000 678,000
FLEET EXPANSION: PUBLIC WORKS
No. of Vehicles/Year: 2026-27: 1
✔
Measure A Fund 216,002 - - - 216,002
Total 216,002 - - - 216,002
Public Ways & Facilities Total Appropriations $ 16,880,478 $ 36,393,333 $ 16,251,790 $ 21,170,996 $ 90,696,597 Funding Sources
Gas Tax & Transportation Development Act
Fund $ 5,897,407 $ 6,165,748 $ 6,197,979 $ 6,359,628 $ 24,620,763 Measure A Fund 3,266,748 3,094,510 3,145,972 3,198,927 12,706,157 Growth Mitigation Fund 3,250,000 15,590,000 5,500,000 10,000,000 34,340,000 Developer / Grant Street Projects Fund 3,001,029 10,693,281 315,045 327,647 14,337,002 Fleet Services Fund - - 243,000 435,000 678,000
Capital Projects - General Fund 1,465,294 849,794 849,794 849,794 4,014,676 Public Ways & Facilities Total Funding $ 16,880,478 $ 36,393,333 $ 16,251,790 $ 21,170,996 $ 90,696,597

PUBLIC TRANSIT CAPITAL PROJECTS

CHARGING INFRASTRUCTURE AT TRANSIT
CENTER
✔
Public Transit Fund 1,500,000 - - - 1,500,000
Total 1,500,000 - - - 1,500,000

SANTA MARIA REGIONAL TRANSIT

OPERATIONS YARD IMPROVEMENTS
✔
Public Transit Fund 300,000 300,000 - - 600,000
Total 300,000 300,000 - - 600,000
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 150

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total
BUS SCAFFOLDING ✔
Public Transit Fund 85,000 - - - 85,000
Total 85,000 - - - 85,000
TRANSIT CENTER OPTIMIZATION ✔
Public Transit Fund 300,000 200,000 - - 500,000
Total 300,000 200,000 - - 500,000
BUS STOP IMPROVEMENTS ✔
Public Transit Fund 500,000 500,000 - - 1,000,000
Total 500,000 500,000 - - 1,000,000
FLEET REPLACEMENTS: TRANSIT
No. of Vehicles/Year: 2026-27: 1
Public Transit Fund 72,500 - - - 72,500
Total 72,500 - - - 72,500
FLEET EXPANSION: TRANSIT
No. of Vehicles/Year: 2026-27: 12; 2027-28: 3
✔
Public Transit Fund 5,570,000 4,500,000 - - 10,070,000
Total 5,570,000 4,500,000 - - 10,070,000
Public Transit Total Appropriations $ 8,327,500 $ 5,500,000 $ - $ - $ 13,827,500 Funding Sources
Public Transit Fund $ 8,327,500 $ 5,500,000 $ - $ - $ 13,827,500 Public Transit Total Funding $ 8,327,500 $ 5,500,000 $ - $ - $ 13,827,500

LEISURE & CULTURAL SERVICES CAPITAL

PROJECTS

NEW PLAYGROUND INSTALLATIONS TO

REPLACE AGING PLAYGROUNDS AT CITY
PARKS
✔
Quimby-Park Acquisition & Development
Fund 325,000 325,000 - - 650,000
Total 325,000 325,000 - - 650,000
City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 151

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total
TREE TRIMMING ✔
Northwest Landscape District Fund 75,000 75,000 - - 150,000 Northeast Landscape District Fund 75,000 75,000 - - 150,000 Southwest Landscape District Fund 75,000 75,000 - - 150,000 Southeast Landscape District Fund 75,000 75,000 - - 150,000 Total 300,000 300,000 - - 600,000
PARK RENOVATION PROJECTS ✔
Quimby-Park Acquisition & Development
Fund 200,000 200,000 - - 400,000
Total 200,000 200,000 - - 400,000

PARK FURNISHINGS
Quimby-Park Acquisition & Development
Fund 150,000 150,000 - - 300,000
Total 150,000 150,000 - - 300,000

LOS FLORES RANCH PROJECTS
Residential Development Tax Fund 90,000 90,000 - - 180,000 Total 90,000 90,000 - - 180,000
FLEET REPLACEMENTS: RECREATION & PARKS
No. of Vehicles/Year: 2028-29: 10; 2029-30: 4
✔
Fleet Services Fund - - 584,374 410,000 994,374
Total - - 584,374 410,000 994,374
Leisure & Cultural Services Total
Appropriations $ 1,065,000 $ 1,065,000 $ 584,374 $ 410,000 $ 3,124,374 Funding Sources
Fleet Services Fund $ - $ - $ 584,374 $ 410,000 $ 994,374 Northwest Landscape District Fund 75,000 75,000 - - 150,000 Northeast Landscape District Fund 75,000 75,000 - - 150,000 Southwest Landscape District Fund 75,000 75,000 - - 150,000 Southeast Landscape District Fund 75,000 75,000 - - 150,000 Residential Development Tax Fund 90,000 90,000 - - 180,000 City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 152

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total
Quimby-Park Acquisition & Development
Fund 675,000 675,000 - - 1,350,000
Leisure & Cultural Services Total Funding $ 1,065,000 $ 1,065,000 $ 584,374 $ 410,000 $ 3,124,374

GENERAL GOVERNMENT CAPITAL PROJECTS

AMERICANS WITH DISABILITIES ACT (ADA)

SELF-EVALUATION AND TRANSITION PLAN
UPDATE
✔
Measure A Fund 249,735 - - - 249,735
Total 249,735 - - - 249,735
FLEET REPLACEMENTS: CITY ATTORNEY’S
OFFICE
No. of Vehicles/Year: 2028-29: 2
✔
Fleet Services Fund - - 125,110 - 125,110
Total - - 125,110 - 125,110
General Government Total Appropriations $ 249,735 $ - $ 125,110 $ - $ 374,845 Funding Sources
Fleet Services Fund $ - $ - $ 125,110 $ - $ 125,110
Measure A Fund 249,735 - - - 249,735
General Government Total Funding $ 249,735 $ - $ 125,110 $ - $ 374,845 Capital, Maintenance & Equipment Projects Total
Funding $ 50,170,556 $ 108,337,280 $ 59,305,561 $ 49,799,539 $ 267,612,937

SUMMARY BY PROJECT TYPE
PUBLIC SAFETY $ 408,621 $ 922,517 $ 1,030,693 $ 2,353,383 $ 4,715,214 PUBLIC UTILITIES 23,023,220 64,456,430 41,313,594 25,865,160 154,658,404 PUBLIC WAYS & FACILITIES 16,880,478 36,393,333 16,251,790 21,170,996 90,696,597 PUBLIC TRANSIT 8,327,500 5,500,000 - - 13,827,500
LEISURE & CULTURAL SERVICES 1,065,000 1,065,000 584,374 410,000 3,124,374 GENERAL GOVERNMENT 249,735 - 125,110 - 374,845
GRAND TOTAL $ 49,954,554 $ 108,337,280 $ 59,305,561 $ 49,799,539 $ 267,396,934 City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 153

CAPITAL PROJECTS LIST BY CATEGORY
Proposed Proposed Projected Projected Four-Year
2026-27 2027-28 2028-29 2029-30 Total

SUMMARY BY PROJECT TYPE
CAPITAL PROJECTS - GENERAL FUND $ 1,465,294 $ 849,794 $ 849,794 $ 849,794 $ 4,014,676

GAS TAX & TRANSPORTATION DEVELOPMENT
ACT FUND 5,897,407 6,165,748 6,197,979 6,359,628 24,620,763 GROWTH MITIGATION FUND 4,250,000 18,857,000 5,500,000 10,000,000 38,607,000 RESIDENTIAL DEVELOPMENT TAX FUND 90,000 90,000 - - 180,000 MEASURE A FUND 3,516,483 3,094,510 3,145,972 3,198,927 12,955,892 PUBLIC TRANSIT FUND 8,255,000 5,500,000 - - 13,755,000
WATER FUND 7,758,000 24,547,000 860,000 860,000 34,025,000 WASTEWATER FUND 12,775,220 35,742,430 38,229,930 21,355,160 108,102,740 DEVELOPER / GRANT STREET PROJECTS FUND 3,001,029 10,693,281 315,045 327,647 14,337,002 FLEET SERVICES FUND 976,121 922,517 3,306,841 6,848,383 12,053,862 SOLID WASTE DISPOSAL FUND 995,000 900,000 900,000 - 2,795,000

QUIMBY-PARK ACQUISITION &
DEVELOPMENT FUND 675,000 675,000 - - 1,350,000
NORTHWEST LANDSCAPE DISTRICT FUND 75,000 75,000 - - 150,000 NORTHEAST LANDSCAPE DISTRICT FUND 75,000 75,000 - - 150,000 SOUTHWEST LANDSCAPE DISTRICT FUND 75,000 75,000 - - 150,000 SOUTHEAST LANDSCAPE DISTRICT FUND 75,000 75,000 - - 150,000 GRAND TOTAL $ 49,954,554 $ 108,337,280 $ 59,305,561 $ 49,799,539 $ 267,396,934 City of Santa Maria 2026-28 Biennial Budget
Capital Improvement Plan, Maintenance, and Equipment Projects 154
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155

PERSONNEL
City of Santa Maria 2026-28 Biennial Budget
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PERSONNEL OVERVIEW
The full-time equivalent (FTE) counts listed in this budget document reflect positions funded with current resources. All positions, both full and part-time, are shown in the FTE count. A Full-Time Equivalent (FTE) is defined as a position that works 2,080 hours per fiscal year, or 2,912 hours for certain Fire personnel.

For example, a full-time employee who works 2,080 hours per year equals 1.00 FTE. A part-time employee who works 1,664 hours per fiscal year equals 0.80 FTE. The FTE for Fire Department positions are reflected at the applicable calendar of 2,080 or 2,912 hours per FTE.

POSITION CONTROL
Addition or deletion of positions following budget adoption will occur within City guidelines as stated in Santa Maria Municipal Code Section 2-20.03 Change of Classifications: “The allocation of positions as of the adoption of the ordinance from which this section derives may be changed by the City Manager whenever the duties of the position change materially; provided, that the proposed change conforms with this chapter, with the established classification plan, and with the approved budget.

The City Manager’s review of a position or the creation of a new position occurs upon the recommendation of the department director, or upon the request of an employee and with the concurrence of the department director and the Human Resources Division.” In many cases these are referred to as reclassifications.

SUMMARY OF SIGNIFICANT CHANGES
The positions listed in this budget document reflect those previously adopted during the mid-cycle budget update, those added and deleted (reclassifications) by the City Manager and through other City Council actions, specifically as part of the budget amendments presented through Quarterly Financial Reports. In preparation for the biennial budget process, departments assess their operational needs and recommend the addition, consolidation, or deletion of positions through Supplemental Budget Requests (SBRs) that have a nexus to support and align with the City Council’s goals and priorities.

Following the Mid-Cycle Budget Review, departments were once again asked to reevaluate their operations and submit proposals to reduce expenses and/or increase revenues of their Net General Fund/Measure U appropriations. Every submission was carefully reviewed by the Department of Finance and the City Manager’s Office with the submitting department. Upon review, the City Manager carefully selected amendments that would minimize impacts to the community in order to reduce the FY 2025-26 deficit by $12.5 million. Of that amount, $8.7 million of long-term reductions contribute toward the structural deficit ongoing, of which $7.6 million was made up of vacant chilled positions. On January 20, 2026, the City Council considered and adopted these amendments with those related to personnel, as follows:
• Decreased regular and part-time salaries and benefits by $3.0 million. This included the reduction of 24.00 FTE positions, comprised of 20 vacant full-time (1.00 FTE) non-safety positions, totaling $2.7 million and 5 vacant part-time (0.80 FTE) non-safety positions, totaling $286 thousand;
• Decreased limited-service salaries and benefits by $657 thousand. This equates to the reduction of approximately 39,000 limited-service hours;
• It is important to note that it is anticipated that the elimination of these positions did not result in any layoffs.

In total, this 2026-27 budget includes 713 positions (703.80 FTE), which is a decrease of 39 positions (37.80 FTE) from the FY 2025-26 Mid-Cycle Adopted Budget. The budget indicates the deletion of 38 positions in the General Fund and 2 positions (2.00 FTE) in the Library Fund, the addition of 2 positions (2.00 FTE) in the Enterprise Funds, and the shift of 4 positions from the General Fund to the Assessment Districts, and the shift of a portion of 4 positions from the General Fund to the General Liability Fund.

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PERSONNEL SUMMARY BY FUND

PERSONNEL SUMMARY BY FUND
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note

CITY FUND
FD100, FD110 – General and Measure U 498.873 456.264 (42.610) 456.264 - (1) FD620 – Water Fund 37.310 38.650 1.340 38.650 - (2)
FD630 – Solid Waste Collection Fund 44.060 44.390 0.330 44.390 - (2) FD640 – Wastewater Fund 28.880 29.210 0.330 29.210 - (2) FD560 – Fleet Services Fund 15.263 15.063 (0.200) 15.063 - (3) FD490 – Library Fund 27.400 25.400 (2.000) 25.400 - (4) FD610 – Solid Waste Disposal Fund 30.750 30.750 - 30.750 - FD530 – Radio Technology Fund 2.000 2.000 - 2.000 -
FD43* – Assessment Districts 20.350 24.150 3.800 24.150 - (5) FD660 – Public Transit Fund 6.000 6.000 - 6.000 -
FD468 – Measure A Fund 25.624 25.223 (0.400) 25.223 - (6) FD570 – General Liability Fund 4.000 5.700 1.700 5.700 - (1), (7) FD480 – SM Community TV Fund 1.090 1.000 (0.090) 1.000 - Total Budgeted FTE 741.600 703.800 (37.800) 703.800 -

SUMMARY OF CHANGES
The FY 2026-27 budget includes 703.80 FTE, an decrease of 37.80 FTE as compared to the FY 2025-26 budget. The FY 2027-28 budget includes a 0.00 FTE change as compared to the FY 2026-27 budget.

The following summaries net increases and decreases in total FTE at the fund level. (1) General and Measure U Funds: 42.61 FTE decrease in FY 2026-27 reflects the following:
a. Second Quarter 2024-25 Budget Amendment:
i. Two (2) 1.00 FTE Maintenance Worker I positions were reallocated from the General Fund to the Landscape Districts for the Recreation & Parks Department. b. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Administrative Leader position was deleted for the City Attorney’s Office. ii. One (1) 1.00 FTE Chief Building Inspector position was deleted for the Building Division of the Community Development Department.
iii. One (1) 1.00 FTE Business Leader and one (1) 1.00 FTE Program Leader positions were deleted for the Administration Division; one (1) 1.00 FTE Business Leader was deleted for the Human Resources Division; and, one (1) 1.00 FTE Corporate/Executive Leader NonSafety and one (1) 1.00 FTE Program Leader positions were deleted for the Information Technology Division of the City Manager’s Office.
iv. Two (2) 1.00 FTE Fire Captain, three (3) 1.00 Fire Engineer and three (3) Fire Fighter positions were unfunded for the Fire Department. The positions remain authorized in the FTE count. v. One (1) 1.00 FTE Librarian I and one (1) 0.80 FTE Security Officer positions supported by Measure U were deleted for the Library Department.
vi. Ten (10) 1.00 FTE Police Corporal positions were unfunded for the Police Department. The positions remain authorized in the FTE count.
vii. One (1) 1.00 FTE Secretary position was deleted for the Engineering Division of the Public Works Department; one (1) 1.00 FTE Maintenance Worker I, one (1) 1.00 FTE Maintenance Worker II, and one (1) 0.80 FTE Laborer III position was deleted for the Facilities Maintenance Division of the Public Works Department; and, one (1) 1.00 FTE Electrician I position was deleted for the Streets Maintenance Division of the Public Works Department.
viii. One (1) 0.80 FTE Laborer III and One (1) 1.00 FTE Maintenance Worker I positions were reallocated from the General Fund to the Assessment Districts for the Recreation & Parks Department. One (1) 0.80 FTE Facility Specialist position was deleted for the Administration City of Santa Maria 2026-28 Biennial Budget
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Division; one (1) 1.00 FTE Recreation Supervisor and one (1) 1.00 FTE Recreation Coordinator positions were deleted for the Recreation Division; one (1) 0.80 FTE Laborer III position was deleted for the Parks Division; one (1) 1.00 FTE Outreach Coordinator position supported by Measure U was deleted for the Administration Division; one (1) 1.00 FTE Park Services Officer II position supported by Measure U was deleted for the Park Rangers Division; and one (1) 1.00 FTE Recreation Coordinator supported by Measure U was deleted for the Recreation Division of the Recreation & Parks Department. c. 2026-27:
i. Deletion of Enterprise Resource Planning System Project Implementation Fixed-Term Positions (March 2024 Budget Amendment):
 Two (2) 1.00 FTE Admin Leader and one (1) 1.00 FTE Confidential Technician I/II were deleted from the Human Resources Division of the City Manager’s Office.  One (1) 1.00 FTE Senior Project Manager was deleted from the Information Technology Division of the City Manager’s Office.
 One (1) 1.00 FTE Program Leader, one (1) 1.00 FTE Confidential Technician I/II, one (1)

1.00 FTE Accounting Technician I/II, and three (3) 1.00 FTE Finance Clerk I/II were deleted from the Finance Department.
ii. Deletion of Grant Funded Position:
 One (1) 1.00 FTE Park Services Officer II was deleted for the Park Rangers Division of the Recreation & Parks Department due to expiration of the California Department of Justice Tobacco Grant Program.
iii. Budget Reduction and Revenue Generation:
 Partial funding for one (1) Corporate/Executive Leader-Non Safety, one (1) Legal Office Specialist, and two (2) Organization/Enterprise Leader-Non Safety positions (1.70 FTE) for the City Attorney’s Office is reallocated from the General Fund to the General Liability Fund.
 One (1) 1.00 FTE Senior Planner is deleted from the Planning Division of the Community Development Department.
 One (1) 1.00 FTE Organization/Enterprise Leader-Non Safety and one (1) 1.00 FTE Finance Clerk I/II are reclassified as one (1) 1.00 FTE Program Leader and one (1) 1.00 FTE Accounting Technician I/II, respectively; one (1) 1.00 FTE Confidential Technician III and one (1) 0.80 FTE Account Clerk Aide are deleted for the Finance Department.  One (1) 1.00 FTE Criminalistics Technician II and one (1) 1.00 FTE Police Records Technician – Detectives are deleted for the Police Department.  One (1) 1.00 FTE Account Clerk I and one (1) 0.80 FTE Facility Specialist II are deleted for the Recreation & Parks Department.
iv. Supplemental Budget Requests – Reclassifications/Funding Reallocation:
 One (1) 1.00 FTE Corporate/Executive Leader-Non Safety is reallocated from the City Manager’s Office to the Human Resources Division.
 One (1) 1.00 FTE Police Sergeant is reclassified as one (1) 1.00 FTE Police Lieutenant and one (1) 1.00 FTE Program Leader was reclassified as one (1) 1.00 FTE Outreach Coordinator for the Police Department.
(2) Water Fund, Wastewater Fund, Solid Waste Collection Fund, and Solid Waste Disposal Fund: 2.00 FTE increase in FY 2026-27 reflects the following:
a. Third Quarter 2024-25 Budget Amendment:
i. One (1) 1.00 FTE Lead Customer Service Technician position was added to the Water Resources Division for the Utilities Department;
b. 2026-27:
i. Supplemental Budget Requests - Additions:
 One (1) 1.00 FTE Finance Clerk I/II is added for the Utility Billing Division of the Finance Department.
(3) Fleet Services Fund: 0.20 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Electrician I position was deleted for the Streets Maintenance Division of the Public Works Department.

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(4) Library Fund: 2.00 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Librarian I and one (1) 1.00 FTE Library Technician positions were deleted for the Library Department.
(5) Assessment Districts: 3.80 FTE increase in FY 2026-27 reflects the following:
a. Second Quarter 2024-25 Budget Amendment:
i. Two (2) 1.00 FTE Maintenance Worker I positions were reallocated from the General Fund to the Landscape Districts for the Recreation & Parks Department. b. 2025-26 Budget Rebalancing Initiative:
i. One (1) 0.80 FTE Laborer III and One (1) 1.00 FTE Maintenance Worker I positions were reallocated from the General Fund to the Assessment Districts for the Recreation & Parks Department.
(6) Measure A Fund: 0.40 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Electrician I position was deleted for the Streets Maintenance Division of the Public Works Department.
(7) Insurance Funds: 1.70 FTE increase in FY 2026-27 reflects the following:
a. 2026-27:
i. Budget Reduction and Revenue Generation:
 Partial funding for one (1) Corporate/Executive Leader-Non Safety, one (1) Legal Office Specialist, and two (2) Organization/Enterprise Leader-Non Safety positions (1.70 FTE) for the City Attorney’s Office is reallocated from the General Fund to the General Liability Fund.
(8) SM Community TV Fund: 0.09 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Program Leader position was deleted for the Administration Division of the City Manager’s Office.

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PERSONNEL SUMMARY BY DEPARTMENT

PERSONNEL SUMMARY BY DEPARTMENT
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note

CITY DEPARTMENT
CC03 – City Attorney’s Office 10.000 9.000 (1.000) 9.000 - (1) CC04 – City Manager’s Office 43.800 34.800 (9.000) 34.800 - (2) CC05 – Finance 31.800 25.000 (6.800) 25.000 - (3)
CC06 – Community Development 33.000 31.000 (2.000) 31.000 - (4) CC07 – Library 27.400 23.600 (3.800) 23.600 - (5)
CC08 – Recreation & Parks 100.000 90.600 (9.400) 90.600 - (6) CC09 – Fire 86.80 86.800 - 86.800 - (7)
CC10 – Police 200.000 198.000 (2.000) 198.000 - (8)
CC11 – Public Works 74.800 70.000 (4.800) 70.000 - (9)
CC02 – Utilities 134.000 135.000 1.000 135.000 - (10)
Total Budgeted FTE 741.600 703.800 (37.800) 703.800 -
(1) City Attorney’s Office: 1.00 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Administrative Leader position was deleted for the City Attorney’s Office. b. 2026-27:
i. Budget Reduction and Revenue Generation:
 Partial funding for one (1) Corporate/Executive Leader-Non Safety, one (1) Legal Office Specialist, and two (2) Organization/Enterprise Leader-Non Safety positions (1.70 FTE) for the City Attorney’s Office is reallocated from the General Fund to the General Liability Fund.
(2) City Manager’s Office: 9.00 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Business Leader and one (1) 1.00 FTE Program Leader positions were deleted for the Administration Division; one (1) 1.00 FTE Business Leader was deleted for the Human Resources Division; and, one (1) 1.00 FTE Corporate/Executive Leader NonSafety and one (1) 1.00 FTE Program Leader positions were deleted for the Information Technology Division of the City Manager’s Office.
b. 2026-27:
i. Deletion of Enterprise Resource Planning System Project Implementation Fixed-Term Positions (March 2024 Budget Amendment):
 Two (2) 1.00 FTE Admin Leader and one (1) 1.00 FTE Confidential Technician I/II were deleted from the Human Resources Division of the City Manager’s Office.  One (1) 1.00 FTE Senior Project Manager was deleted from the Information Technology Division of the City Manager’s Office.
ii. Supplemental Budget Requests – Reclassifications/Funding Reallocation:
 One (1) 1.00 FTE Corporate/Executive Leader-Non Safety is reallocated from the City Manager’s Office to the Human Resources Division.
(3) Finance: 6.80 FTE decrease in FY 2026-27 reflects the following:
a. 2026-27:
i. Deletion of Enterprise Resource Planning System Project Implementation Fixed-Term Positions (March 2024 Budget Amendment):
 One (1) 1.00 FTE Program Leader, one (1) 1.00 FTE Confidential Technician I/II, one (1)

1.00 FTE Accounting Technician I/II, and three (3) 1.00 FTE Finance Clerk I/II were deleted from the Finance Department.
ii. Budget Reduction and Revenue Generation:
 One (1) 1.00 FTE Organization/Enterprise Leader-Non Safety and one (1) 1.00 FTE Finance Clerk I/II are reclassified as one (1) 1.00 FTE Program Leader and one (1) 1.00 City of Santa Maria 2026-28 Biennial Budget
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FTE Accounting Technician I/II, respectively; one (1) 1.00 FTE Confidential Technician III and one (1) 0.80 FTE Account Clerk Aide are deleted for the Finance Department. b. 2026-27:
i. Supplemental Budget Requests – Additions:
 One (1) 1.00 FTE Finance Clerk I/II is added for the Utility Billing Division of the Finance Department.
(4) Community Development: 2.00 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Chief Building Inspector position was deleted for the Building Division of the Community Development Department.
b. 2026-27:
i. Budget Reduction and Revenue Generation:
  One (1) 1.00 FTE Senior Planner is deleted from the Planning Division of the Community Development Department.
(5) Library: 3.80 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Librarian I and one (1) 0.80 FTE Security Officer positions supported by Measure U were deleted for the Library Department. One (1) 1.00 FTE Librarian I and one (1) 1.00 FTE Library Technician positions were deleted for the Library Department. (6) Recreation & Parks: 9.40 FTE decrease in FY 2026-27 reflects the following:
a. Second Quarter 2024-25 Budget Amendment:
i. Two (2) 1.00 FTE Maintenance Worker I positions were reallocated from the General Fund to the Landscape Districts for the Recreation & Parks Department. b. 2025-26 Budget Rebalancing Initiative:
i. One (1) 0.80 FTE Laborer III and One (1) 1.00 FTE Maintenance Worker I positions were reallocated from the General Fund to the Assessment Districts for the Recreation & Parks Department. One (1) 0.80 FTE Facility Specialist III position was deleted for the Administration Division; one (1) 1.00 FTE Recreation Supervisor and one (1) 1.00 FTE Recreation Coordinator positions were deleted for the Recreation Division; one (1) 0.80 FTE Laborer III position was deleted for the Parks Division; one (1) 1.00 FTE Outreach Coordinator position supported by Measure U was deleted for the Administration Division; one (1) 1.00 FTE Park Services Officer II position supported by Measure U was deleted for the Park Rangers Division; and one (1) 1.00 FTE Recreation Coordinator supported by Measure U was deleted for the Recreation Division of the Recreation & Parks Department. c. 2026-27:
i. Deletion of Grant Funded Position:
 One (1) 1.00 FTE Park Services Officer II was deleted for the Park Rangers Division of the Recreation & Parks Department due to expiration of the California Department of Justice Tobacco Grant Program.
ii. Budget Reduction and Revenue Generation:
 One (1) 1.00 FTE Account Clerk I and one (1) 0.80 FTE Facility Specialist II are deleted for the Recreation & Parks Department.
(7) Fire: 0.00 FTE change in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. Two (2) 1.00 FTE Fire Captain, three (3) 1.00 Fire Engineer and three (3) Fire Fighter positions were unfunded for the Fire Department. The positions remain authorized in the FTE count. (8) Police: 2.00 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. Ten (10) 1.00 FTE Police Corporal positions were unfunded for the Police Department. The positions remain authorized in the FTE count.
b. 2026-27:
i. Budget Reduction and Revenue Generation:
 One (1) 1.00 FTE Criminalistics Technician II and one (1) 1.00 FTE Police Records Technician – Detectives are deleted for the Police Department. ii. Supplemental Budget Requests – Reclassifications/Funding Reallocation:

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 One (1) 1.00 FTE Police Sergeant is reclassified as one (1) 1.00 FTE Police Lieutenant and one (1) 1.00 FTE Program Leader was reclassified as one (1) 1.00 FTE Outreach Coordinator for the Police Department.
(9) Public Works: 4.80 FTE decrease in FY 2026-27 reflects the following:
a. 2025-26 Budget Rebalancing Initiative:
i. One (1) 1.00 FTE Secretary position was deleted for the Engineering Division of the Public Works Department; one (1) 1.00 FTE Maintenance Worker I, one (1) 1.00 FTE Maintenance Worker II, and one (1) 0.80 FTE Laborer III position was deleted for the Facilities Maintenance Division of the Public Works Department; and, one (1) 1.00 FTE Electrician I position was deleted for the Streets Maintenance Division of the Public Works Department.
(10) Utilities: 1.00 FTE increase in FY 2026-27 reflects the following:
a. Third Quarter 2024-25 Budget Amendment:
i. One (1) 1.00 FTE Lead Customer Service Technician position was added to the Water Resources Division for the Utilities Department.

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PERSONNEL DETAIL BY DEPARTMENT
The following Personnel Detail lists all budgeted positions for each department, identifies the change from the mid-cycle budget udpate, and provides annotations for the changes. Two classifications of position type are segregated in the Personnel Detail:

1. Full-Time

2. Part-Time
Limited-Service positions are considered pooled positions. An FTE value is used as an assumption to allocate a budget amount; however, the actual FTE hired may vary from the FTE assumption. City departments are required to adhere to the total amount budgeted for the pool but are not required to adhere to the FTE assumption.

PERSONNEL DETAIL PAGE REFERENCES
City Attorney’s Office....................................................................................................................................165 City Manager’s Office...................................................................................................................................166 Community Development Department.....................................................................................................168 Finance Department.....................................................................................................................................168 Fire Department.............................................................................................................................................171 Library Department .......................................................................................................................................171 Police Department........................................................................................................................................173 Public Works Department.............................................................................................................................174 Recreation and Parks Department .............................................................................................................176 Utilities Department .......................................................................................................................................178 Measure U Positions by Department ...........................................................................................................180 City of Santa Maria 2026-28 Biennial Budget
Personnel – City Attorney’s Office
165
CITY ATTORNEY’S OFFICE
CITY ATTORNEY’S OFFICE
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC0310 – City Attorney
ADLA Administrative Leader 1.00 - (1.00) - - (1)
CLCA Corporate/Executive Leader
(Non-Safety)

1.00 0.50 (0.50) 0.50 - (2)
LOSA Legal Office Specialist 1.00 0.50 (0.50) 0.50 - (2) OLCA Organization/Enterprise Leader
(Non-Safety)

3.00 2.30 (0.70) 2.30 - (2)
Full-Time Total 6.00 3.30 (2.70) 3.30 -
CC0310 – City Attorney Total 6.00 3.30 (2.70) 3.30 -
CC0340 – Risk Management
BULI Business Leader 1.00 1.00 - 1.00 -
CLCA Corporate/Executive Leader
(Non-Safety)
- 0.50 0.50 0.50 - (2)
CT1M,
CT1R
Confidential Technician I/II 2.00 2.00 - 2.00 -
LOSA Legal Office Specialist - 0.50 0.50 0.50 - (2)
OLCA Organization/Enterprise Leader
(Non-Safety)
- 0.70 0.70 0.70 - (2)
PRLI Program Leader 1.00 1.00 - 1.00 -
Full-Time Total 4.00 5.70 1.70 5.70 -
CC0340 – Risk Management Total 4.00 5.70 1.70 5.70 -
Total Budgeted FTE 5.00 9.00 (1.00) 9.00 -
City Attorney’s Office: 1.00 FTE decrease in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: One (1) 1.00 FTE Administrative Leader position was deleted for the City Attorney’s Office.
(2) Budget Reduction and Revenue Generation:
a. Partial funding for one (1) Corporate/Executive Leader-Non Safety, one (1) Legal Office Specialist, and two (2) Organization/Enterprise Leader-Non Safety positions (1.70 FTE) for the City Attorney’s Office is reallocated from the General Fund to the General Liability Fund.

City of Santa Maria 2026-28 Biennial Budget
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166
CITY MANAGER’S OFFICE
CITY MANAGER’S OFFICE
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC0410, CC0420 CC0430, CC0440,
CC0445, CC0450, CC0460, CC0470,
CC0480 – Administration, Human
Resources, Records/City Clerk,
Information Technology, Communications
ADLC,
ADLE,
ADLH,
ADLM
Administrative Leader 6.00 4.00 (2.00) 4.00 - (2)
BULC,
BULH,
BULX
Business Leader 5.00 3.00 (2.00) 3.00 - (1)
CCDC Chief Deputy City Clerk 1.00 1.00 - 1.00 -
CMRM City Manager 1.00 1.00 - 1.00 -
CT1E,
CT1H,
CT1M
CT2M,
CT2H
Confidential Technician I/II 6.00 5.00 (1.00) 5.00 - (2) CLCM Corporate/Executive Leader
(Non-Safety

3.00 2.00 (1.00) 2.00 - (1), (3)
DCCC Deputy City Clerk 1.00 1.00 - 1.00 -
EXAM Executive Assistant 1.00 1.00 - 1.00 -
GISA GIS Analyst 1.00 1.00 - 1.00 -
PEGM PEG Production Manager 1.00 1.00 - 1.00 -
PRLC,
PRLH,
PRLX
Program Leader 6.00 4.00 (2.00) 4.00 - (1)
SPMM Senior Project Manager 2.00 1.00 (1.00) 1.00 - (2) SHP1 SharePoint Developer 1.00 1.00 - 1.00 -
SSA1,
SSA2
Systems Analyst I/II 6.00 6.00 - 6.00 -
SSAS Senior Systems Analyst 2.00 2.00 - 2.00 -
Full-Time Total 43.00 34.00 9.34 34.00 -
ZCOM Community Outreach
Coordinator

0.80 0.80 - 0.80 -
Part-Time Total 0.80 0.80 - 0.80 -
004-010, 020 & 030, 005-040 & 042 –
Administration, Human Resources,
Records/City Clerk, Information
Technology, Communications Total

43.80 34.80 (9.00) 34.80 -
Total Budgeted FTE 43.80 34.80 (9.00) 34.80 -
City Manager’s Office: 9.00 FTE decrease in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: One (1) 1.00 FTE Business Leader and one (1) 1.00 FTE Program Leader positions were deleted for the Administration Division; one (1) 1.00 FTE Business Leader was deleted for the Human Resources Division; and, one (1) 1.00 FTE Corporate/Executive Leader Non-Safety and one (1) 1.00 FTE Program Leader positions were deleted for the Information Technology Division of the City Manager’s Office.

City of Santa Maria 2026-28 Biennial Budget
Personnel – City Manager’s Office
167
(2) 2026-27 Deletion of Enterprise Resource Planning System Project Implementation Fixed-Term Positions (March 2024 Budget Amendment):
a. Two (2) 1.00 FTE Admin Leader and one (1) 1.00 FTE Confidential Technician I/II were deleted from the Human Resources Division of the City Manager’s Office. b. One (1) 1.00 FTE Senior Project Manager was deleted from the Information Technology Division of the City Manager’s Office.
(3) 2026-27 Supplemental Budget Requests – Reclassifications/Reallocations:
a. One (1) 1.00 FTE Corporate/Executive Leader-Non Safety is reallocated from the City Manager’s Office to the Human Resources Division.

City of Santa Maria 2026-28 Biennial Budget
Personnel – Community Development
168

COMMUNITY DEVELOPMENT

COMMUNITY DEVELOPMENT
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC0620 – Planning
ADAR Administrative Assistant 1.00 1.00 - 1.00 -
ADLD Administrative Leader 1.00 1.00 - 1.00 -
PL1A Assistant Planner 1.00 - (1.00) - -
PL1D,
PL2D
Associate Planner 1.00 2.00 1.00 2.00 -
CLCD Corporate/Executive Leader
(Non-Safety)

1.00 1.00 - 1.00 -
DPDM Planning Division Manager 1.00 1.00 - 1.00 -
PPLD Principal Planner 1.00 1.00 - 1.00 -
PL3D Senior Planner 2.00 1.00 (1.00) 1.00 - (2)
Full-Time Total 9.00 8.00 (1.00) 8.00 -
CC0620 – Planning 9.00 8.00 - 8.00 -
CC0630 – Building
DBDM Building Division Manager 1.00 1.00 - 1.00 -
BI1D,
BI2D
Building Inspector I/II 4.00 4.00 - 4.00 -
BPTD,
BP2D
Building Permit Technician I/II 3.00 3.00 - 3.00 -
CBID Chief Building Inspector 1.00 - (1.00) - - (1)
DBOB Deputy Building Official 1.00 1.00 - 1.00 -
PCED Plan Check Engineer 1.00 1.00 - 1.00 -
PESD Plans Examiner 2.00 2.00 - 2.00 -
SBPD Sr Building Permit Technician 1.00 1.00 - 1.00 -
Full-Time Total 14.00 13.00 (1.00) 13.00 -
CC0630 – Building 14.00 13.00 (1.00) 13.00 -
CC0640 – Community Programs
GS2C Grants Specialist II 1.00 1.00 - 1.00 -
HCSM Housing & Community Services
Manager

1.00 1.00 - 1.00 -
HCDT Housing & Community Services
Technician

1.00 1.00 - 1.00 -
Full-Time Total 3.00 3.00 - 3.00 -
CC0640 – Community Programs Total 3.00 3.00 - 3.00 -
CC0641 – Code Enforcement
CE1A,
CE2A
Code Enforcement Officer I/II 4.00 4.00 - 4.00 -
CESA Code Enforcement Supervisor 1.00 1.00 - 1.00 -
CETA Code Enforcement Technician 1.00 1.00 - 1.00 -
PRLD Program Leader 1.00 1.00 - 1.00 -
Full-Time Total 7.00 7.00 - 7.00 -
CC0640 – Code Enforcement 7.00 7.00 - 7.00 -
Total Budgeted FTE 33.00 31.00 (2.00) 31.00 -
City of Santa Maria 2026-28 Biennial Budget
Personnel – Community Development
169
Community Development: 2.00 FTE decrease in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: One (1) 1.00 FTE Chief Building Inspector position was deleted for the Building Division of the Community Development Department. (2) 2026-27 Budget Reduction and Revenue Generation: One (1) 1.00 FTE Senior Planner is deleted from the Planning Division of the Community Development Department.

City of Santa Maria 2026-28 Biennial Budget
Personnel – Finance
170

FINANCE

FINANCE
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC0510 – Administrative Services
CLFS Corporate/Executive Leader
(Non-Safety)

1.00 1.00 - 1.00 -
OLFS Organization/Enterprise Leader
(Non-Safety)

1.00 - (1.00) - - (2)
SCMM Secretary 1.00 1.00 - 1.00 -
Full-Time Total 3.00 2.00 (1.00) 2.00 -
CC0510 – Administrative Services Total 3.00 2.00 (1.00) 2.00 - 005-020 – Finance
AC1S,
AC2S
Accounting Technician I/II 4.00 4.00 - 4.00 - (1), (2)
AC3S Accounting Technician III 1.00 1.00 - 1.00 -
BULB Business Leader 2.00 2.00 - 2.00 -
CT1B,
CT2B,
CT1E
Confidential Technician I/II 3.00 2.00 (1.00) 2.00 - (1) CT3B Confidential Technician III 1.00 - (1.00) - - (2)
FC1S,
FC2S
Finance Clerk I/II 3.00 1.00 (2.00) 1.00 - (1), (2)
PRLB,
PRLE
Program Leader 5.00 5.00 - 5.00 - (1), (2)
Full-Time Total 19.00 15.00 (4.00) 15.00 -
ZACS Account Clerk Aide 0.80 - (0.80) - - (2)
Part-Time Total 0.80 - (0.80) - -
CC0520 – Finance Total 19.80 15.00 (4.80) 15.00 -
CC0530 – Utility Billing
AC1S Accounting Technician I 2.00 2.00 - 2.00 -
FC1S,
FC2S
Finance Clerk I/II 6.00 5.00 (1.00) 5.00 - (1), (3)
PRLB Program Leader 1.00 1.00 - 1.00 -
Full-Time Total 9.00 8.00 (1.00) 8.00 -
CC0530 Utility Billing Total 9.00 8.00 (1.00) 8.00 -
Total Budgeted FTE 31.80 25.00 (6.80) 25.00 -
Finance: 6.80 FTE decrease in FY 2026-27 reflects the following:
(1) Deletion of Enterprise Resource Planning System Project Implementation (March 2024 Budget Amendment): One (1) 1.00 FTE Program Leader, one (1) 1.00 FTE Confidential Technician I/II, one (1) 1.00 FTE Accounting Technician I/II, and three (3) 1.00 FTE Finance Clerk I/II were deleted from the Finance Department.
(2) 2026-27 Budget Reduction and Revenue Generation: One (1) 1.00 FTE Organization/Enterprise Leader-Non Safety and one (1) 1.00 FTE Finance Clerk I/II are reclassified as one (1) 1.00 FTE Program Leader and one (1) 1.00 FTE Accounting Technician I/II, respectively; one (1) 1.00 FTE Confidential Technician III and one (1) 0.80 FTE Account Clerk Aide are deleted for the Finance Department. (3) Supplemental Budget Request – Additions: One (1) 1.00 FTE Finance Clerk I/II is added for the Utility Billing Division of the Finance Department.

City of Santa Maria 2026-28 Biennial Budget
Personnel – Fire
171
FIRE
FIRE
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC0910, CC0920, CC0940 –
Administration, Operations, & Prevention
ADAF Administrative Assistant 1.00 1.00 - 1.00 -
ADLF Administrative Leader 2.00 2.00 - 2.00 -
CLFD Corporate/Executive Leader
(Safety)

1.00 1.00 - 1.00 -
FBCF Fire Battalion Chief 4.00 4.00 - 4.00 -
FCNF Fire Captain 22.00 22.00 - 22.00 - (1)
FERF Fire Engineer 24.00 24.00 - 24.00 - (1)
FFRF Fire Fighter 24.00 24.00 - 24.00 - (1)
FIIF Fire Inspector I 2.00 2.00 - 2.00 -
FIMF Fire Marshall 1.00 1.00 - 1.00 -
F02F Fire Prevention Officer II 2.00 2.00 - 2.00 -
OA1F,
OA2F
Office Assistant I/II 1.00 1.00 - 1.00 -
OLDF Organization/Enterprise Leader
– Safety

1.00 1.00 - 1.00 -
PRLF Program Leader 1.00 1.00 - 1.00 -
Full-Time Total 86.00 86.00 - 86.00 -
ZCEF Emergency Services Specialist 0.80 0.80 - 0.80 -
Part-Time Total 0.80 0.80 - 0.80 -
CC0910, CC0920, CC0940 –
Administration, Operations, & Prevention
Total

86.80 86.80 - 86.80 -
Total Budgeted FTE 86.80 86.80 - 86.80 -
Fire: 0.00 FTE change in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: Two (2) 1.00 FTE Fire Captain, three (3) 1.00 Fire Engineer and three (3) Fire Fighter positions were unfunded for the Fire Department. The positions remain authorized in the FTE count.

City of Santa Maria 2026-28 Biennial Budget
Personnel – Library
172

LIBRARY

LIBRARY
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC0710, CC0720, CC0730 –
Administration, Services & Outreach
ADAL Administrative Assistant 1.00 1.00 - 1.00 -
CLLB Corporate/Executive Leader
(Non-Safety)

1.00 1.00 - 1.00 -
GTLB Graphics Technician 1.00 1.00 - 1.00 -
LI1L Librarian I 4.00 2.00 (2.00) 2.00 - (1), (2)
LI2L Librarian II 3.00 3.00 - 3.00 -
LI3L Librarian III 2.00 2.00 - 2.00 -
LLCC Library Clerk 1.00 1.00 - 1.00 -
LITL Library Technician 3.00 2.00 (1.00) 2.00 - (2)
PRLL Program Leader 1.00 1.00 - 1.00 -
Full-Time Total 17.00 14.00 (3.00) 14.00 -
ZC2L Clerk II 6.40 6.40 - 6.40 -
ZLTL Library Technical Assistant 2.40 2.40 - 2.40 -
YSEO Security Officer 1.60 0.80 (0.80) 0.80 - (1)
Part-Time Total 10.40 9.60 (0.80) 9.60 -
CC0710, CC0720, CC0730 –
Administration, Services & Outreach Total

27.40 23.60 (3.80) 23.60 -
Total Budgeted FTE 27.40 23.60 (3.80) 23.60 -
Library: 3.80 FTE decrease in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: One (1) 1.00 FTE Librarian I and one (1) 0.80 FTE Security Officer positions supported by Measure U were deleted for the Library Department. (2) One (1) 1.00 FTE Librarian I and one (1) 1.00 FTE Library Technician positions were deleted for the Library Department.

City of Santa Maria 2026-28 Biennial Budget
Personnel – Police
173
POLICE
POLICE
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC1010, CC1020, CC1030 –
Administration, Operations, & Support
ADAP Administrative Assistant 2.00 2.00 - 2.00 -
BSAM Business Systems Analyst 1.00 1.00 - 1.00 -
CLPD Corporate/Executive Leader
(Safety)

1.00 1.00 - 1.00 -
CAN1,
CAN2
Crime Analyst I/II 1.00 1.00 - 1.00 -
CESP Crime Lab & Evidence
Supervisor

1.00 1.00 - 1.00 -
CT1P,
CT2P
Criminalistics Technician I/II 4.00 3.00 (1.00) 3.00 - (2) DFE1 Digital Forensics Examiner 1.00 1.00 - 1.00 -
DI1P,
DI2P
Dispatcher I/II 16.00 16.00 - 16.00 -
INSP Investigative Specialist I/II 2.00 2.00 - 2.00 -
LPTP Lead Police Services
Technician

1.00 1.00 - 1.00 -
OA2P Office Assistant II 2.00 2.00 - 2.00 -
OLPD Organization/Enterprise Leader
(Safety)

3.00 3.00 - 3.00 -
OTCP Outreach Coordinator - 1.00 1.00 1.00 - (3)
PCLP Police Corporal 11.00 11.00 - 11.00 - (1)
PLTP Police Lieutenant 5.00 6.00 1.00 6.00 - (3)
PORP Police Officer 102.00 102.00 - 102.00 -
PRSP Police Records Supervisor 1.00 1.00 - 1.00 -
PTDP Police Records TechDetectives1.00 0.00 (1.00) 0.00 - (2) PT1P,
PT2P
Police Records Technician I/II 8.00 8.00 - 8.00 -
PSGP Police Sergeant 18.00 17.00 (1.00) 17.00 - (3)
PSTP Police Services Technician 6.00 6.00 - 6.00 -
PRLP Program Leader 3.00 2.00 (1.00) 2.00 - (3)
PECP Property-Evidence Clerk 3.00 3.00 - 3.00 -
PSDI Senior Dispatcher 4.00 4.00 - 4.00 -
SRTP Senior Police Records Tech 3.00 3.00 - 3.00 -
Full-Time Total 200.00 198.00 (2.00) 198.00 -
CC1010, CC1020, CC1030 –
Administration, Operations, & Support
Total
200.00 198.00 (2.00) 198.00 -
Total Budgeted FTE 200.00 198.00 (2.00) 198.00 -
Police: 2.00 FTE decrease in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: Ten (10) 1.00 FTE Police Corporal positions were unfunded for the Police Department. The positions remain authorized in the FTE count. (2) 2026-27 Budget Reduction and Revenue Generation: One (1) 1.00 FTE Criminalistics Technician II and one (1)

1.00 FTE Police Records Technician – Detectives are deleted for the Police Department. (3) Supplemental Budget Requests – Reclassifications/Funding Reallocation: One (1) 1.00 FTE Police Sergeant is reclassified as one (1) 1.00 FTE Police Lieutenant and one (1) 1.00 FTE Program Leader was reclassified as one (1) 1.00 FTE Outreach Coordinator for the Police Department.

City of Santa Maria 2026-28 Biennial Budget
Personnel – Public Works
174

PUBLIC WORKS

PUBLIC WORKS
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC1120, CC1150 – Engineering &
Operations
ACIW,
AC2W
Account Clerk I/II 3.00 3.00 - 3.00 -
ADAW Administrative Assistant 1.00 1.00 - 1.00 -
ADLW Administrative Leader 1.00 1.00 - 1.00 -
ASWW Automotive Service Writer 1.00 1.00 - 1.00 -
CWIW Chief Public Works Inspector 1.00 1.00 - 1.00 -
CLPW Corporate/Executive Leader
(Non-Safety)

1.00 1.00 - 1.00 -
CLSW Crew Leader-Maint Specialist 4.00 4.00 - 4.00 -
ELEC Electrician I 1.00 - (1.00) - - (1)
EN3W Engineer III 2.00 2.00 - 2.00 -
ENT2 Engineering Technician II 2.00 2.00 - 2.00 -
EM1W,
EM2W
Equipment Mechanic I/II 2.00 2.00 - 2.00 -
FSPW Facilities Supervisor 1.00 1.00 - 1.00 -
FDMW Field Mechanic 3.00 3.00 - 3.00 -
FSSU Fleet Services Supervisor 1.00 1.00 - 1.00 -
HEMW Heavy Equipment Mechanic 2.00 2.00 - 2.00 -
LDMW Lead Mechanic 2.00 2.00 - 2.00 -
MW1W,
MW2W
Maintenance Worker I/II 21.00 19.00 (2.00) 19.00 - (1)
OLPW Organization/Enterprise Leader
(Non-Safety)

1.00 1.00 - 1.00 -
PCEW Principal Civil Engineer 2.00 2.00 - 2.00 -
PRLW Program Leader 1.00 1.00 - 1.00 -
PWIW Public Works Inspector 2.00 2.00 - 2.00 -
PWMW Public Works Operations
Manager

1.00 1.00 - 1.00 -
SCYW Secretary 1.00 - (1.00) - - (1)
SCEW Senior Civil Engineer 2.00 2.00 - 2.00 -
SCMW,
WSCM
Senior Crew Leader-Maint Spec 5.00 5.00 - 5.00 -
SMPW Senior Project Manager 1.00 1.00 - 1.00 -
STSW Senior Traffic Signal Tech 1.00 1.00 - 1.00 -
SMSW Street Maint Supervisor 2.00 2.00 - 2.00 -
TSTW Traffic Signal Technician 1.00 1.00 - 1.00 -
Full-Time Total 69.00 65.00 (4.00) 65.00 -
ZL3W Laborer III 0.80 - (0.80) - - (1)
Part-Time Total 0.80 - (0.80) - -
CC1120, CC1150 – Engineering &
Operations Total

69.80 65.00 (4.80) 65.00 -
CC1170 – Public Transit
ADLW Administrative Leader 1.00 1.00 - 1.00 -
OLPW Organization/Enterprise Leader
(Non-Safety)
- 1.00 1.00 1.00 -
City of Santa Maria 2026-28 Biennial Budget
Personnel – Public Works
175
TRTW Transit Assistant 1.00 1.00 - 1.00 -
TRCW Transit Coordinator 1.00 1.00 - 1.00 -
TRPW Transit Planner 1.00 1.00 - 1.00 -
TRAW Transit Services Manager 1.00 - 1.00 - -
Full-Time Total 5.00 5.00 - 5.00 -
CC1170 – Public Transit Total 5.00 5.00 - 5.00 -
Total Budgeted FTE 74.80 70.00 (4.80) 70.00 -
Public Works: 4.80 FTE decrease in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: One (1) 1.00 FTE Secretary position was deleted for the Engineering Division of the Public Works Department; one (1) 1.00 FTE Maintenance Worker I, one (1) 1.00 FTE Maintenance Worker II, and one (1) 0.80 FTE Laborer III position was deleted for the Facilities Maintenance Division of the Public Works Department; and, one (1) 1.00 FTE Electrician I position was deleted for the Streets Maintenance Division of the Public Works Department.

City of Santa Maria 2026-28 Biennial Budget
Personnel – Recreation & Parks
176

RECREATION & PARKS

RECREATION & PARKS
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
CC0810, CC0815, CC0821, CC0822,
CC0840, CC0845 – Administration, Park
Services Officers, Recreation, Facilities,
Operations & Special Projects
AC1R Account Clerk I 1.00 - (1.00) - - (4)
ADAR Administrative Assistant 1.00 1.00 - 1.00 -
BULR Business Leader 2.00 2.00 - 2.00 -
CLRP Corporate/Executive Leader
(Non-Safety)

1.00 1.00 - 1.00 -
GTRB Graphics Technician 1.00 1.00 - 1.00 -
MW1R,
MW2R
Maintenance Worker I/II 17.00 14.00 (3.00) 14.00 - (1), (2) OA2R Office Assistant II 2.00 2.00 - 2.00 -
OLRP Organization/Enterprise Leader
(Non-Safety)

1.00 1.00 - 1.00 -
OTCR Outreach Coordinator 1.00 - (1.00) - - (2)
PO1R Park Service Officer 2.00 2.00 - 2.00 -
PO2R Park Services Officer II 5.00 3.00 (2.00) 3.00 - (2), (3) PO3R Park Services Officer III 2.00 2.00 - 2.00 -
RPFS Parks & Forest Supervisor 1.00 1.00 - 1.00 -
PRLR Program Leader 1.00 1.00 - 1.00 -
RCRR Recreation Coordinator 6.00 4.00 (2.00) 4.00 - (2) RSRR Recreation Supervisor 4.00 3.00 (1.00) 3.00 - (2)
RRTT Recreation Technician 2.00 2.00 - 2.00 -
WSCM Senior Crew Leader-Maint Spec 5.00 5.00 - 5.00 -
SPSR Senior Park Services Officer 1.00 1.00 - 1.00 -
Full-Time Total 56.00 46.00 (10.00) 46.00 -
ZACR Account Clerk Aide 0.80 0.80 - 0.80 -
ZCOR Community Outreach
Coordinator

0.80 0.80 - 0.80 -
ZS2R Facility Specialist II 7.20 6.40 (0.80) 6.40 - (2) ZS3R Facility Specialist III 0.80 - (0.80) - - (2)
ZL3R Laborer III 8.00 6.40 (1.60) 6.40 - (2)
ZRS1 Recreation Activity Specialist 4.00 4.00 - 4.00 -
SECR Security Guard 0.80 0.80 - 0.80 -
ZSLR Senior Lifeguard 1.60 1.60 - 1.60 -
Part-Time Total 24.00 20.80 (3.20) 20.80 -
CC0810, CC0815, CC0821, CC0822,
CC0840, CC0845 – Administration, Park
Services Officers, Recreation, Facilities,
Operations & Special Projects Total

80.00 66.80 (13.20) 66.80 -
CC0850 – Special Districts
AC1R Account Clerk I 1.00 1.00 - 1.00 -
CLSR Crew Leader-Maintenance
Specialist

2.00 2.00 - 2.00 -
MW1R,
MW2R
Maintenance Worker I/II 9.00 12.00 3.00 12.00 - (1), (2) City of Santa Maria 2026-28 Biennial Budget
Personnel – Recreation & Parks
177
SDCR Special Districts Coordinator 1.00 1.00 - 1.00 -
SDPR Special Districts Planning
Technician

1.00 1.00 - 1.00 -
SDSR Special Districts Supervisor 1.00 1.00 - 1.00 -
SDTR Special Districts Technician 1.00 1.00 - 1.00 -
Full-Time Total 16.00 19.00 3.00 19.00 -
ZL3R Laborer III 4.00 4.80 0.80 4.80 - (2)
Part-Time Total 4.00 4.80 0.80 4.80 -
CC0850 - Special Districts Total 20.00 23.80 3.80 23.80 - Total Budgeted FTE 100.00 90.60 (9.40) 90.60 -
Recreation & Parks: 9.40 FTE decrease in FY 2026-27 reflects the following:
(1) Second Quarter 2024-25 Budget Amendment: Two (2) 1.00 FTE Maintenance Worker I positions were reallocated from the General Fund to the Landscape Districts for the Recreation & Parks Department.
(2) 2025-26 Budget Rebalancing Initiative:
a. One (1) 0.80 FTE Laborer III and One (1) 1.00 FTE Maintenance Worker I positions were reallocated from the General Fund to the Assessment Districts for the Recreation & Parks Department. One (1) 0.80 FTE Facility Specialist III position was deleted for the Administration Division; one (1) 1.00 FTE Recreation Supervisor and one (1) 1.00 FTE Recreation Coordinator positions were deleted for the Recreation Division; and, one (1) 0.80 FTE Laborer III position was deleted for the Parks Division.
b. One (1) 1.00 FTE Outreach Coordinator position supported by Measure U was deleted for the Administration Division; one (1) 1.00 FTE Park Services Officer II position supported by Measure U was deleted for the Park Rangers Division; and one (1) 1.00 FTE Recreation Coordinator supported by Measure U was deleted for the Recreation Division of the Recreation & Parks Department.
(3) 2026-27 Deletion of Grant Funded Position: One (1) 1.00 FTE Park Services Officer II was deleted for the Park Rangers Division of the Recreation & Parks Department due to expiration of the California Department of Justice Tobacco Grant Program.
(4) 2026-27 Budget Reduction and Revenue Generation: One (1) 1.00 FTE Account Clerk I and one (1)

0.80 FTE Facility Specialist II are deleted for the Recreation & Parks Department.

City of Santa Maria 2026-28 Biennial Budget
Personnel - Utilities
178

UTILITIES

UTILITIES
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
011-060, 080 – Water Resources
ADLU Administrative Leader - 2.00 2.00 2.00 - (2)
WCST Customer Service Technician 3.00 3.00 - 3.00 -
EITW Electrical and Instrumentation
Technician - 1.00 1.00 1.00 - (3)
GS2M GIS Technician II 1.00 1.00 - 1.00 -
LBCU Laboratory Coordinator 1.00 1.00 - 1.00 -
LWWU Lead Wastewater Operator 3.00 3.00 - 3.00 -
LWOU Lead Water Operator 2.00 2.00 - 2.00 -
MU1U,
MW1U Maintenance Worker I 6.00 6.00 - 6.00 -
OA1U Office Assistant I - 1.00 1.00 1.00 - (1)
OLNS Organization/Enterprise Leader
(Non-Safety) - 1.00 1.00 1.00 - (3)
PCEW Principal Civil Engineer 1.00 1.00 - 1.00 -
PRLU Program Leader - 1.00 1.00 1.00 - (3)
RCSU,
RCSW Reg Compliance Specialist 2.00 2.00 - 2.00 -
RC2U Reg Compliance Specialist II 1.00 1.00 - 1.00 -
RCMU Regulatory Compliance
Manager 1.00 1.00 - 1.00 -
SCEU Senior Civil Engineer 1.00 1.00 - 1.00 -
UUTA Utilities Technology Analyst 1.00 1.00 - 1.00 -
WWOU Wastewater Operator III 8.00 8.00 - 8.00 -
WWSU Wastewater Supervisor 1.00 2.00 1.00 2.00 - (2)
WWCS Water Conservation Specialist 1.00 1.00 - 1.00 -
WTO3 Water Operator III 11.00 11.00 - 11.00 -
WRMU Water Resources Manager 1.00 2.00 1.00 2.00 - (2)
WTSU Water Supervisor 2.00 2.00 - 2.00 -
Full-Time Total 47.00 55.00 8.00 55.00 -
ZSAW Staff Assistant 0.80 0.80 - 0.80 -
Part-Time Total 0.80 0.80 - 0.80 -
011-060, 080 – Water Resources Total 47.80 55.80 8.00 55.80 - 011-052, 053, 054, 056 – Refuse & Street
Sweeping
ACSU Account Clerk – Scale House 3.00 3.00 - 3.00 -
ACIW,
AC2U
Account Clerk I/II 3.00 3.00 - 3.00 -
AAUD Administrative Assistant 1.00 1.00 - 1.00 -
BULU Business Leader - 2.00 2.00 2.00 -
BP1U Business Program Leader I 3.00 - (3.00) - -
BP2U Business Program Leader II 1.00 - (1.00) - - (1)
CLUT Corporate/Executive Leader
(Non-Safety)

1.00 1.00 - 1.00 -
EN1U,
EN2U
Engineer I/II 1.00 1.00 - 1.00 -
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179

UTILITIES
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
LHLU Landfill Heavy Equip Lead Opr 2.00 2.00 - 2.00 -
HEOW Landfill Heavy Equip Opr 7.00 7.00 - 7.00 -
MW1U,
MW2U,
MW2W
Maintenance Worker I/II 9.00 9.00 - 9.00 -
OA2U,
OA2W
Office Assistant II 3.00 3.00 - 3.00 -
OLNS Organization/Enterprise Leader
(Non-Safety)

1.00 1.00 - 1.00 -
PCEW Principal Civil Engineer - 1.00 1.00 1.00 - (4)
RCMU Regulatory Compliance
Manager
- 1.00 1.00 1.00 - (1)
RCSU Reg Compliance Specialist 1.00 1.00 - 1.00 -
RC2U,
RCS2
Reg Compliance Specialist II 2.00 3.00 1.00 3.00 - (3)
RC3U Regulatory Compliance
Supervisor

1.00 1.00 - 1.00 -
SCEU Senior Civil Engineer 1.00 - (1.00) - - (4)
SWCU Solid Waste Collections Super 1.00 1.00 - 1.00 -
WSWL Solid Waste Equip Lead Opr 2.00 2.00 - 2.00 -
SCLU Solid Waste Equipment Crew
Ldr

2.00 2.00 - 2.00 -
SW1U,
SW2U
Solid Waste Equipment Opr I/II 24.00 24.00 - 24.00 -
SWLW Solid Waste Landfill Super 1.00 1.00 - 1.00 -
SWMU Solid Waste Manager 2.00 2.00 - 2.00 -
AT3U Utilities Accounting Technician
III

1.00 1.00 - 1.00 -
UOSU Utilities Outreach Specialist 1.00 2.00 1.00 2.00 - (3) Full-Time Total 74.00 75.00 1.00 75.00 -
ZSAW Staff Assistant 0.80 - (0.80) - - (1)
Part-Time Total 0.80 - (0.80) - -
011-052, 053, 054, 056 – Refuse & Street
Sweeping Total

74.80 75.00 0.20 75.00 -
Total Budgeted FTE 122.60 130.80 8.20 130.80 -
Utilities: 1.00 FTE increase in FY 2026-27 reflects the following:
(1) Third Quarter 2024-25 Budget Amendment: One (1) 1.00 FTE Lead Customer Service Technician position was added to the Water Resources Division for the Utilities Department.

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MEASURE U POSITION DETAIL BY DEPARTMENT
The following Personnel Detail lists all budgeted positions supported by Measure U for each department, identifies the change from the mid-cycle budget update, and provides annotations for the changes. Three classifications of position type are segregated in the Personnel Detail:

1. Full-Time Benefitted

2. Part-Time
Limited-Service positions are considered pooled positions. The FTE value listed for these positions reflects the FTE equivalent of the allocated budget amount; the actual FTE hired may vary from the FTE listed in the Personnel Detail. City departments are required to adhere to the total amount budgeted for the pool but are not required to adhere to the FTE allocation.

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CITY MANAGER’S OFFICE
CITY MANAGER’S OFFICE
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
004-092 – Measure U
PEGM PEG Production Manager 1.00 1.00 - 1.00 -
Full-Time Total 1.00 1.00 - 1.00 -
004-092 – Measure U Total 1.00 1.00 - 1.00 - COMMUNITY DEVELOPMENT

COMMUNITY DEVELOPMENT
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
006-092 – Measure U
CE1A Code Enforcement Officer I/II 3.00 3.00 - 3.00 -
CESA Code Enforcement Supervisor 1.00 1.00 - 1.00 -
CETA Code Enforcement Technician 1.00 1.00 - 1.00 -
PRLD Program Leader 1.00 1.00 - 1.00 -
Full-Time Total 6.00 6.00 - 6.00 -
006-092 – Measure U Total 6.00 6.00 - 6.00 - LIBRARY

LIBRARY
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
007-090, 091, 092 – Measure U
LI1L Librarian I 1.00 - (1.00) - - (1)
LLCC Library Clerk 1.00 1.00 - 1.00 -
Full-Time Benefitted Total 2.00 1.00 (1.00) 1.00 -
ZC2L Clerk II 1.60 1.60 - 1.60 -
ZLTL Library Technical Assistant 2.40 2.40 - 2.40 -
YSEO Security Officer 1.60 0.80 - 0.80 - (1)
Part-Time Total 5.60 4.80 (0.80) 4.80 -
007-090, 091, 092 – Measure U Total 7.60 5.80 (1.80) 5.80 - Library: -1.80 FTE decrease in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: One (1) 1.00 FTE Librarian I and one (1) 0.80 FTE Security Officer positions supported by Measure U were deleted for the Library Department. RECREATION & PARKS

RECREATION & PARKS
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
008-090, 091, 092 – Measure U
BULR Business Leader 1.00 1.00 - 1.00 -
OA2R Office Assistant I/II 1.00 1.00 - 1.00 -
OTCR Outreach Coordinator 1.00 - (1.00) - - (1)
PO1R Park Service Officer 2.00 2.00 - 2.00 -
PO2R Park Services Officer II 4.00 3.00 (1.00) 3.00 -
PO3R Park Services Officer III 2.00 2.00 - 2.00 -
RCRR Recreation Coordinator 1.00 - (1.00) - -
Full-Time Total 12.00 9.00 (3.00) 9.00 -
ZS2R Facility Specialist II 1.60 1.60 - 1.60 -
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ZRS1 Recreation Activity Specialist 4.00 4.00 - 4.00 -
SECR Security Guard 0.80 0.80 - 0.80 -
Part-Time Total 6.40 6.40 - 6.40
008-090, 091, 092 – Measure U Total 18.40 15.40 (3.00) 15.40 - Recreation & Parks: 3.00 FTE decrease in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: One (1) 1.00 FTE Outreach Coordinator position supported by Measure U was deleted for the Administration Division; one (1) 1.00 FTE Park Services Officer II position supported by Measure U was deleted for the Park Rangers Division; and one (1) 1.00 FTE Recreation Coordinator supported by Measure U was deleted for the Recreation Division of the Recreation & Parks Department. FIRE
FIRE
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
009-090 – Measure U
ADLF Administrative Leader 2.00 2.00 - 2.00 -
DFCF Deputy Fire Chief 1.00 1.00 - 1.00 -
FBCF Fire Battalion Chief 2.00 2.00 - 2.00 -
FCNF Fire Captain 12.00 12.00 - 12.00 - (1), (2)
FERF Fire Engineer 10.00 10.00 - 10.00 - (1), (2)
FFRF Fire Fighter 18.00 18.00 - 18.00 -
FIIF Fire Inspector I 2.00 2.00 - 2.00 -
F02F Fire Prevention Officer II 1.00 1.00 - 1.00 -
OA1F Office Assistant I 1.00 1.00 - 1.00 -
Full-Time Total 49.00 49.00 - 49.00 -
ZCEF Emergency Services Specialist 0.80 0.80 - 0.80 -
Part-Time Total 0.80 0.80 - 0.80 -
009-090 – Measure U Total 49.80 49.80 - 49.80 -
Fire: 0.00 FTE change in FY 2026-27 reflects the following:
(1) 2025-26 Budget Rebalancing Initiative: One (1) 1.00 FTE Fire Captain, one (1) 1.00 Fire Engineer and one (1) Fire Fighter positions were unfunded for the Fire Department. The positions remain authorized in the FTE count. POLICE
POLICE
Job Code and Position Title
Adopted
FY 2025-26
Proposed
FY 2026-27 Change
Proposed
FY 2027-28 Change Note
010-090 – Measure U
CAN1,
CAN2
Crime Analyst I/II 1.00 1.00 - 1.00 -
DI1P,
DI2P
Dispatcher I/II 3.00 3.00 - 3.00 -
INSP Investigative Specialist I/II 1.00 1.00 - 1.00 -
OLPD Organization/Enterprise Leader
(Safety)

1.00 1.00 - 1.00 -
PCLP Police Corporal 9.00 9.00 - 9.00 - (1)
PLTP Police Lieutenant 1.00 1.00 - 1.00 -
PORP Police Officer 27.00 27.00 - 27.00 -
PSGP Police Sergeant 8.00 8.00 - 8.00 -
PSTP Police Services Technician 1.00 1.00 - 1.00 -
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PRLP Program Leader 1.00 1.00 - 1.00 -
PECP Property-Evidence Clerk 1.00 1.00 - 1.00 -
Full-Time Total 54.00 54.00 - 54.00 -r
010-090 – Measure U Total 54.00 54.00 - 54.00 -
Police: 0.00 FTE change in FY 2026-27 reflects the following:0 (1) 2025-26 Budget Rebalancing Initiative: Eight (8) 1.00 FTE Police Corporal positions were unfunded for the Police Department. The positions remain authorized in the FTE count.

Total Budgeted FTE 136.80 132.00 (4.80) 132.00 -
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DEPARTMENT BUDGET DETAIL
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OVERVIEW
Departmental budget details include the following information for each applicable City department:

The following pages present information on each City department, program, or activity. Each section provides information on major departments, the departmental structure, the financial relationship between the departmental programs, a summary of the overall departmental budget, the goals and objectives of the department in the first year of the two-year budget, and major budget changes to the departments. Each departmental budget contains the following elements:
• Organizational Chart: The organizational chart presents the administrative structure summarizing how each department is organized.
• Program Expenses: This section reports expenses by summary type: Salaries and Benefits, Services and Supplies, Capital, Debt Service, and Reserves. • Summary of Service Programs: The cost of each activity, division, or program within the department is summarized and presented in this section. • Program Description: This section presents a general description of the department’s purpose, and the goals and activities of each program and/or division. • Subprograms and Their Objectives: This section outlines how each division or subprogram accomplishes the purpose and the goals of the department. • Performance/Workload Measures: This section presents historical and projected performance and workload indicators. These indicators show the activities required to achieve the department’s goals and objectives, as well as provide a picture of the scope of work and effectiveness of the departments.
• Goals and Objectives: This section lists the specific program-related goals and objectives that the department intends to pursue over the first year of the two-year budget. • Noteworthy Budget Highlights: This section summarizes the significant operating program changes from the prior financial plan. These changes may include major service reorganizations; the curtailment or expansion of services and/or programs; increases or decreases in regular positions; significant one-time costs; major changes in the method of delivering services; operational changes that will impact other departments or customer service; and changes that affect current policies or noteworthy capital projects.

DEPARTMENT DETAIL PAGE REFERENCES
Police Department ........................................................................................................................................189 Fire Department.............................................................................................................................................196 Utilities Department .......................................................................................................................................203 Public Works Department .............................................................................................................................218 Recreation and Parks Department .............................................................................................................231 Library Department .......................................................................................................................................241 Community Development Department .....................................................................................................246 Mayor & Council............................................................................................................................................262 City Attorney’s Office....................................................................................................................................265 City Manager’s Office...................................................................................................................................269 Finance Department.....................................................................................................................................279 City of Santa Maria 2026-28 Biennial Budget
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PUBLIC SAFETY: POLICE DEPARTMENT

DEPARTMENT OVERVIEW

PURPOSE
The Santa Maria Police Department strives to protect and serve all those who live, work, or visit the City of Santa Maria by providing professional police services through community partnerships. Under a philosophy of Community and Constitutionally
Based Policing, the Department strives to maintain
trust and deliver exceptional service to promote
public safety and reduce crime. The Department
offers a full range of professional police services that include patrol operations, investigations, traffic and
parking enforcement, criminalistics, crime prevention , and many other services necessary to ensure the
development of a safer community. The
Department’s policing philosophy promotes strength
through interaction and mutual respect in partnership
with the community to improve the quality of life for all persons within the City.

GOALS AND OBJECTIVES
GOAL DEPARTMENTAL GOALS FOR 2026-27

ADMINISTRATION
Fiscal Management Execute and implement the new hybrid patrol scheduling model to maximize operational coverage and resource
efficiency while maintaining a minimum staffing
requirement of 60 patrol officers.

Optimize Service Delivery Explore and identify a suitable vendor to implement a Drone First Responder (DFR) program. Utilize AI technology in the Police Communications Center to handle nonemergency call taking duties.

SAFETY
Public Safety Implement a one-year red-light camera pilot program at designated City intersections to reduce violations,
evaluate effectiveness, assess expansion opportunities, and identify sustainable long-term funding options.

QUALITY OF LIFE
Homelessness Develop and implement a Homeless Liaison Unit comprised of at least two police officers and two police service technicians focused on strengthening partnerships, connecting unhoused individuals to services, addressing public safety and neighborhood impacts, and improving
quality of life through community-based solutions.

ECONOMIC DEVELOPMENT
Economic Development Community Services Unit (CSU) to collaborate with local businesses to identify safety and quality of life concerns.

ACCOMPLISHMENTS
Recent accomplishments of the Police Department include:
• Reestablishment of the Gang Suppression Team in early 2025 restored a dedicated intelligence and enforcement unit focused on reducing gang violence and recovering illegal firearms in Santa Maria. Following the team’s return, shootings declined from 85 in 2024 to 42 in 2025, a City of Santa Maria 2026-28 Biennial Budget
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51% reduction, while firearms recovered increased from 107 to 201, an 88% increase. These results reflect the direct impact of targeted gang enforcement and proactive firearm recovery efforts.
• Establishment of a Professional Standards Unit created a dedicated team focused on strengthening accountability, transparency, and organizational excellence within the Santa Maria Police Department. The unit centralizes oversight of internal investigations and citizen complaints, modernizes policies to align with best practices, and enhances recruitment, background investigations, and hiring processes. This structure improves consistency and fairness, reinforces public trust, and ensures the department maintains the highest professional standards while supporting long-term organizational effectiveness and community confidence.
• Continued success of the automated license plate reader program has strengthened technology-driven policing and contributed to sustained crime reductions in Santa Maria. Total Part 1 crimes declined from 3,863 in 2022 to 2,628 in 2025, a 32% reduction, with motor vehicle theft dropping from 1,158 to 376 — nearly a 70% reduction. The system provides real-time investigative intelligence that improves case clearance, helps recover stolen vehicles, and supports proactive enforcement strategies that enhance overall public safety. • Doubled the size of the K-9 unit from one to two dogs, enhancing the department’s capabilities in article searches, suspect tracking, and safe apprehension. The expanded unit provides a critical de-escalation tool, allowing officers to locate and contain suspects from a distance, improving officer and public safety. K-9 teams also strengthen community engagement through demonstrations and outreach, reinforcing trust and connection with the community.

NOTEWORTHY BUDGET HIGHLIGHTS
• The department is increasing sworn supervision with the upgrade one Police Sergeant position to a Police Lieutenant. This change will address span-of-control and administrative oversight needs. Increasing the Lieutenant complement will strengthen mid-level management capacity, improve accountability, and ensure appropriate administrative and operational oversight.
• The department will purchase artificial intelligence software to enhance operational efficiency during periods of high call volume by automating routine tasks, thereby allowing dispatchers to focus on critical decision-making, emergency response, and officer safety. • Support for K9 training services is increased as they are mission critical, directly impacting officer safety, public protection, and the effective handling of high-risk incidents. • Funding is provided for the background investigation and recruitment integrated software platform crucial to processing approximately 800 applicants annually while increasing efficiencies in a secure, collaborative environment.

PERFORMANCE MEASURES

PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28

DEMAND/WORKLOAD
Calls for Service 220,612 219,473 217,464
Reports 32,663 34,945 35,681
Sobriety and Driver’s License Checkpoints 9 14 12
Checkpoint Arrests 24 19 38
Traffic Collision Reports 3,903 3,971 4,188
Arrests 6,764 7,115 7,047
Guns Recovered 351 439 502
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DEPARTMENT ORGANIZATION
A complete schedule of the department’s positions, a summary of changes, and a detailed explanation of position changes can be viewed at Personnel - Police Department on page 173.

Chief of Police
Administration
Professional Standards
Training Bureau
Records Bureau
Operations
Patrol Bureau
Traffic Unit
Community Services
Support
Detective Bureau
Gang Suppression Team
Crime Lab
Property Evidence Unit
Communications Center
Crime Analysis
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BUDGET OVERVIEW
Budget Summary by Expenditure Category - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

EXPENDITURE CATEGORY
Salaries & Benefits $ 39,235,808 $ 42,377,549 $ 49,168,661 $ 46,711,807 $ 48,120,053 Services & Supplies 7,872,175 9,900,654 11,031,339 9,170,221 9,181,564 Capital & Outside
Agencies
462,777 212,859 - - -
Transfers 1,004,505 729,816 630,220 300,000 300,000
Total Budget $ 48,575,265 $ 53,220,877 $ 60,830,220 $ 56,182,028 $ 57,601,617 Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FUND
FD100 - General Fund $ 35,806,377 $ 39,824,125 $ 46,328,230 $ 43,862,824 $ 44,901,132 FD110 - Measure U Fund 12,167,830 12,819,252 14,161,740 11,978,954 12,360,235 FD410 – Traffic Safety Fund 448,584 452,522 340,250 340,250 340,250 FD210 – Growth Mitigation
Fund
- 124,978 - 340,250 340,250
FD310 - Capital ProjectsGeneral Fund152,474 - - - -
Total Budget $ 48,575,265 $ 53,220,877 $ 60,830,220 $ 56,182,028 $ 57,601,617 Budget Summary by Program - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

PROGRAM
Public Safety
CC1010 - Administration $ 4,613,519 $ 5,738,636 $ 6,906,063 $ 5,575,382 $ 5,584,596 CC1020 - Operations 20,508,342 21,722,218 25,734,154 25,802,788 26,522,186 CC1030 – Support 23,453,405 25,760,023 28,190,003 24,803,858 25,494,835 Total Public Safety $ 48,575,265 $ 53,220,877 $ 60,830,220 $ 56,182,028 $ 57,601,617 Total Budget $ 48,575,265 $ 53,220,877 $ 60,830,220 $ 56,182,028 $ 57,601,617

DIVISION/PROGRAM BUDGETS

ADMINISTRATION
The Administration Division implements appropriate policy as directed by City Administration and the public through their elected officials, as it pertains to professional police services. Department administration strives to improve the ability of its employees to perform their duties while strengthening the relationship that exists between them and the community they serve. A strong emphasis on recruitment, human resource development, professional standards, risk management, training, and succession planning is essential in achieving the goals and objectives of the Department. The Administration Division maintains fiscal oversight of all Department operations and communicates its organizational needs through the budget process, based upon a reasonable evaluation of future requirements crucial to the Department’s operation.

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Training Bureau
The Training Bureau is responsible for the arrangement and recording of the training for Department personnel, including compliance with mandates and best practices as directed by the California Commission on Peace Officer Standards and Training (POST). The Training Bureau is also tasked with managing recruitment activities for sworn and civilian personnel. Also, it oversees the Department’s policy manual and analyzes and incorporates best practice updates as the State of California releases them, and manages the Field Training Program for new officers, Emergency Preparedness, and the Volunteer Program.

Records Bureau
The Records Bureau’s primary responsibility is to maintain and distribute law enforcement records.

Records personnel are also responsible for registering sex offenders, processing various applications, fingerprinting members of the public, and reporting crime statistics to the FBI. Records personnel are often the face of the Department as they assist community members at the lobby counter.

Crime Analysis
The Crime Analyst is responsible for conducting an in-depth analysis of crime data in search of patterns.

The mission is to assist the Department in using a data-driven approach to patrol deployments and investigations.

Administration (CC1010)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD100 – GENERAL FUND
Salaries & Benefits $ 1,176,650 $ 1,294,434 $ 1,178,351 $ 1,055,608 $ 1,063,479 Services & Supplies 3,237,091 4,192,628 5,584,552 4,376,614 4,377,957 Capital & Outside Agencies 18,104 16,500 - - -
Total General Fund $ 4,431,845 $ 5,503,562 $ 6,762,903 $ 5,432,222 $ 5,441,436 FD110 – MEASURE U FUND
Services & Supplies $ 136,407 $ 110,096 $ 143,160 $ 143,160 $ 143,160 Total Measure U Fund $ 136,407 $ 110,096 $ 143,160 $ 143,160 $ 143,160 FD210 GROWTH MITIGATION FUND
Capital & Outside Agencies $ - $ 124,978 $ - $ - $ -
Total Measure U Fund $ - $ 124,978 $ - $ - $ -
FD310 – CAPITAL PROJECTSGENERAL FUND
Capital & Outside Agencies $ 45,266 $ - $ - $ - $ -
Total Capital Projects-General Fund $ 45,266 $ - $ - $ - $ - Total Administration $ 4,613,519 $ 5,738,636 $ 6,906,063 $ 5,575,382 $ 5,584,596

OPERATIONS
The Operations Division is responsible for uniformed patrol through a network of delivery services, which include Patrol, Community Services, and Traffic.

Patrol Bureau
Patrol is the largest and most visible component of the Police Department, operating 24/7 and functioning as the backbone of police services. The deployment of the police officers is based on crime and calls for service patterns in a particular neighborhood or other geographic areas, the days City of Santa Maria 2026-28 Biennial Budget
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and times of the week calls for service occur, as well as the quality-of-life issues in the community.

Intentional emphasis is placed on the collaborative development of long-term solutions to recurring incidents of neighborhood conflict.

Traffic Unit
The Traffic Unit has the mission of reducing the loss of life, injury, and property damage caused by traffic collisions. As part of their duties, personnel assigned to this unit analyze collision data focusing on location, time, and causal factors. Using this information, traffic personnel attempt to reduce the number and severity of the City's traffic collisions through public education, vehicle checkpoints, coordinating efforts with the City’s traffic engineers, and directed enforcement.

Operations (CC1020)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD100 – GENERAL FUND
Salaries & Benefits $ 18,502,082 $ 19,827,516 $ 24,172,509 $ 23,938,955 $ 24,658,353 Services & Supplies 1,890,245 1,876,040 1,561,645 1,863,833 1,863,833 Capital & Outside Agencies 116,014 18,662 - - -
Total General Fund $ 20,508,342 $ 21,722,218 $ 25,734,154 $ 25,802,788 $ 26,522,186 Total Operations $ 20,508,342 $ 21,722,218 $ 25,734,154 $ 25,802,788 $ 26,522,186

SUPPORT
The Support Division encompasses the Detective Bureau, Gang Suppression Team, Crime Lab, Property/Evidence Unit, Crime Analysis, and the Communications Center.

Community Services Unit
The Community Services Unit consists of Beat Coordinators, School Resource Officers, Police Service Technicians, and a Mental Health Officer. The City is divided into three geographical beats, each assigned a Beat Coordinator to address specific concerns and quality of life issues within the community. School Resource Officers work closely with the school administrators to reduce absenteeism, teach accountability, and provide positive channels for behavior. Police Service Technicians provide a support role to patrol operations in handling various calls for service and community outreach.

Communications Center
The Communications Center provides 24/7 dispatch services for the Police and Fire Departments, and the City of Guadalupe. Dispatchers are responsible for answering and prioritizing incoming 911 calls, non-emergency calls, and administrative calls. Utilizing state-of-the-art technologies, the Center’s personnel handle over 200,000 incoming and outgoing calls every year.

Detective Bureau
The Detective Bureau serves as the primary investigative section of the Police Department and is tasked with investigating criminal cases, identifying/apprehending offenders, and preparing cases for prosecution.

Gang Suppression Team (GST)
The Gang Suppression Team is a highly visible, uniformed unit dedicated to reducing gang violence and recovering illegal firearms. The team conducts narcotics enforcement, gathers criminal intelligence, maintains a strong street-level presence, and provides targeted investigative support to address gang-related activity and enhance public safety.

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Crime Lab
This unit is tasked with the responsibility of identifying and gathering evidence at major crime scenes and processing that evidence in the Department's crime lab. This personnel provides forensic investigative support to uniformed officers and detectives while partnering with State and Federal agencies.

Property/Evidence Unit
The Property and Evidence Unit is tasked with the storing of property and evidence, preserving the “chain of custody”, and purging once cases have reached final resolution.

Support (CC1030)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD100 – GENERAL FUND
Salaries & Benefits $ 9,121,332 $ 10,315,375 $ 11,644,173 $ 11,007,849 $ 11,307,545 Services & Supplies 1,720,241 2,282,970 2,187,000 1,619,965 1,629,965 Capital & Outside Agencies 24,617 - - - -
Total General Fund $ 10,866,190 $ 12,598,345 $ 13,831,173 $ 12,627,814 $ 12,937,510 FD110 – MEASURE U FUND
Salaries & Benefits $ 10,435,744 $ 10,940,223 $ 12,173,628 $ 10,709,395 $ 11,090,676 Services & Supplies 835,250 1,385,993 1,514,732 1,126,399 1,126,399 Capital & Outside Agencies 151,567 52,719 - - -
Transfers 608,861 330,220 330,220 - -
Total Measure U Fund $ 12,031,422 $ 12,709,155 $ 14,018,580 $ 11,835,794 $ 12,217,075 FD310 – CAPITAL PROJECTSGENERAL FUND
Capital & Outside Agencies $ 107,208 $ - $ - $ - $ -
Total Capital Projects-General Fund $ 107,208 $ - $ - $ - $ - FD410 – TRAFFIC SAFETY FUND
Capital & Outside Agencies $ 52,940 $ 52,926 $ 40,250 $ 40,250 $ 40,250 Transfers 395,644 399,596 300,000 300,000 300,000
Total Traffic Safety Fund $ 448,584 $ 452,522 $ 340,250 $ 340,250 $ 340,250 Total Support $ 23,453,405 $ 25,760,023 $ 28,190,003 $ 24,803,858 $ 25,494,835 City of Santa Maria 2026-28 Biennial Budget
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PUBLIC SAFETY: FIRE DEPARTMENT

DEPARTMENT OVERVIEW

PURPOSE
As an “all-risk” public safety agency, the Santa Maria Fire Department is responsible for: fire, rescue, emergency medical services; reduction of the community’s fire and life safety risks; prevention and investigation of fires; public safety education; and, planning, coordinating, training and implementing the City’s Emergency Preparedness Plan. The
Department fulfills these responsibilities by providing a full range of fire and life safety programs,
equipment, supplies, and assets to the City of Santa
Maria’s residents, businesses, visitors, and City
departments and activities.

GOALS AND OBJECTIVES
GOAL DEPARTMENTAL GOALS FOR 2026-27

ADMINISTRATION
Optimize Service Delivery Maintain staffing levels to provide services to our community.

SAFETY
Public Safety Develop a quality control process to review incident times and formally adopt performance goals for Incident
Response.

ACCOMPLISHMENTS
• Put into service an additional engine at Fire Station 6, providing an enhanced service deployment model and improving operational reach of the Fire Department. • Transitioned to the Regional Fire Communications Center (RFCC), partnership with County Fire Departments, allowing for the dispatch of the closest available unit to be sent to emergencies regardless of jurisdiction.
• Improved Insurance Services Office (ISO) rating from 3/3X to 2/2X. • Enhanced a commercial fire inspection program, developing a comprehensive inspection schedule for commercial properties in Santa Maria.
• Acquired a K9, trained as a peer support and wellness dog, supporting the first responders’ mental health and emotional well-being
• Put into service two (2) Type 6 Engines used in wildland urban interface fire response.

NOTEWORTHY BUDGET HIGHLIGHTS
• Funding is provided for annual physicals for department personnel to continue the successful program initiated in FY 2022-23 through a one-time Assistance to Firefighters Grant. Annual physicals provide an excellent tool for monitoring the health and wellbeing of firefighters during their careers. Monitoring for typical occupational risk factors establishes early detection common throughout the industry, such as cancer, heart disease, and orthopedic injuries.

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DEPARTMENT ORGANIZATION
A complete schedule of the department’s positions, a summary of changes, and a detailed explanation of position changes can be viewed at Personnel - Fire Department on page 171.

BUDGET OVERVIEW
Budget Summary by Expenditure Category - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

EXPENDITURE CATEGORY
Salaries & Benefits $ 17,705,894 $ 19,281,633 $ 23,883,706 $ 21,101,643 $ 21,363,354 Services & Supplies 3,583,468 3,545,302 4,071,723 6,265,036 6,265,036 Capital & Outside
Agencies
1,635,012 448,770 - - -
Debt Service - - - - -
Transfers 528,313 341,312 341,312 - -
Total Budget $ 23,452,687 $ 23,617,017 $ 28,296,741 $ 27,366,679 $ 27,628,390 Fire Chief
Administration
Emergency
Preparedness
Community Risk
Reduction
PIO Safety Deputy Fire Chief
Training Fire Operations
Fire Suppression Emergency
Medical Services Haz Mat Services
Technical and
Water Resource
Services
Fire Prevention
Fire Code
Enforcement
Inspection
Services
Fire Safety and
Injury Prevention
Services
Arson
Investigation
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Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FUND
FD100 - General Fund $ 10,246,402 $ 12,040,173 $ 15,281,873 $ 15,102,589 $ 15,190,668 FD110 - Measure U Fund 13,206,285 11,576,844 13,014,868 12,264,090 12,437,722 Total Budget $ 23,452,687 $ 23,617,017 $ 28,296,741 $ 27,366,679 $ 27,628,390 Budget Summary by Program - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

PROGRAM
Public Safety
CC0910 - Administration $ 8,931,328 $ 10,099,459 $ 13,817,911 $ 13,583,497 $ 13,673,958 CC0920, CC0940 –
Operations & Prevention
14,521,359 13,517,558 14,478,830 13,639,742 13,810,992
Total Public Safety $ 23,452,687 $ 23,617,017 $ 28,296,741 $ 27,366,679 $ 27,628,390 Total Budget $ 23,452,687 $ 23,617,017 $ 28,296,741 $ 27,366,679 $ 27,628,390

DIVISION/PROGRAM BUDGETS

FIRE ADMINISTRATION
Provides leadership and executive oversight of the Department’s functions. Manages policy administration, public and inter-agency relations, personnel administration and succession planning, budget and grant administration, financial, accounting and related business analysis, strategic planning, research and technology, and administers the Community Risk Reduction program as part of the Department’s strategic plan. The objectives of this sub-group are to:
• Provide strategic and advanced short-, mid-, and long-range plans to effectively guide the Department’s delivery system.
• Provide the necessary administrative and clerical support for all Departmental programs, other City departments, individuals, and neighboring fire agencies to ensure achievement of agency goals.
• Provide appropriate public information as it pertains to the Department, emergency services, fire and life safety, and other related issues.
• Ensure that appropriate plans, programs, and implementation strategies are effective in meeting fire operational requirements for resource needs, capital improvement plans, and emergency operating policies.
• Implement appropriate policy as directed by City Administration and the public through their elected officials, as it pertains to fire, life safety, and emergency services. • Oversees Emergency Preparedness which:
o Maintains 24/7 operational readiness of the Emergency Operations Center (EOC) that supports all hazard incidents. Responsible for the overall coordination of resources, from multiple disciplines, in the operation and management of the EOC during an EOC activation and the recovery and reimbursement process. Participates in City homeland security objectives ensuring compliance with State and Federal emergency planning requirements, developing emergency plans, and providing training to personnel, residents, businesses, and volunteers. The objectives of this sub-group are to:
o Provides administration, coordination, collaboration, and management of the City’s Emergency Operations Plan, Hazard Mitigation Plan, supporting documents, and the City of Santa Maria 2026-28 Biennial Budget
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Integrated Regional Multi-Hazard Emergency Response Plan for the Cities of Santa Maria and Guadalupe.
o Provides appropriate management of the City’s Emergency Operations Center (EOC), when activated.
o Provides administration, coordination, and management of Memorandums of Understanding and other cooperative instruments with the community and regional partners to further the goals of the program and support the preparedness, response, and recovery goals of the City.
o Provides exceptional public education and customer service to targeted community groups, and City staff, by utilizing available resources from all divisions of the Department and other allied agencies to teach fire safety and disaster preparedness including Community Emergency Response Training, Listos and “Ready” Santa Maria training, which is provided in both English and Spanish. • Engages community partners through community collaborations, presentations, training, and exercises to support emergency and disaster preparedness. Provide opportunities for whole community engagement using available resources from the department, and other agencies.

Collaborate with regional partners to create, support, and implement shared emergency management goals and objectives.

Administration (0920)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD100 – GENERAL FUND
Salaries & Benefits $ 6,293,187 $ 7,496,985 $ 11,473,304 $ 9,416,094 $ 9,506,555 Services & Supplies 2,638,141 2,602,474 2,344,607 4,167,403 4,167,403 Total General Fund $ 8,931,328 $ 10,099,459 $ 13,817,911 $ 13,583,497 $ 13,673,958 Total Administration $ 8,931,328 $ 10,099,459 $ 13,817,911 $ 13,583,497 $ 13,673,958

FIRE OPERATIONS
Manages fire suppression and emergency response services. Maintains a state of readiness for a prompt response to calls for service. Oversight of Emergency Medical Services, HazMat services, technical and water rescue services, and safety services. This is accomplished by utilizing modern and recognized fire suppression standards, extinguishing fires as early as possible to minimize loss of life, damage to property and the environment, and economic impacts upon the community. The objectives of this sub-program are to:
• Provide effective pre-hospital emergency medical services at the Emergency Medical Technician I level utilizing modern and recognized standards of care. Due to the Department’s strategic deployment of resources and station locations, its prompt response times are generally equivalent to or better than the paramedic ambulances. This ensures effective delivery of definitive medical care in a pre-hospital setting and improves patient outcomes. • Provide effective scene management along with basic hazardous materials services at the first responder operational level to enable recognition and defensive protective actions until more technical services arrive on the scene. The Department will continue to work with other appropriate agencies and departments including Public Works and Police, to provide the most effective system for hazard mitigation relating to public and private property and the environment.
• Provide, under contract, Aircraft Rescue and Fire Fighting and airport inspection services to the Santa Maria Public Airport.
• Provide property conservation measures to the greatest extent possible during emergency incidents, including fires, storms, high winds, flooding, and other natural and man-made disasters.

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Operations & Prevention (CC0920, CC0940)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD100 – GENERAL FUND
Salaries & Benefits $ 912,634 $ 1,612,599 $ 1,360,512 $ 1,374,952 $ 1,372,570 Services & Supplies 64,525 155,705 103,450 700 700
Capital & Outside Agencies 337,914 172,409 - - -
Total General Fund $ 1,315,073 $ 1,940,714 $ 1,463,962 $ 1,375,652 $ 1,373,270 FD110 – MEASURE U FUND
Salaries & Benefits $ 10,500,072 $ 10,172,049 $ 11,049,890 $ 10,310,597 $ 10,484,229 Services & Supplies 880,802 787,122 1,623,666 1,953,493 1,953,493 Capital & Outside Agencies 1,297,098 276,361 - - -
Transfers 528,313 341,312 341,312 - -
Total Measure U Fund $ 13,206,285 $ 11,576,844 $ 13,014,868 $ 12,264,090 $ 12,437,722 Total Operations & Prevention $ 14,521,359 $ 13,517,558 $ 14,478,830 $ 13,639,742 $ 13,810,992

FIRE TRAINING
Provides mandated training to meet legislative requirements and instruction to broaden the organizational skill set. The objectives of this sub-program are to:
• Provide effective technical rescue services ensuring that personnel are trained and equipped in specialized operations including, vehicle extrication; confined space rescue; Urban Search and Rescue (USAR); shore-based water rescue; and trench rescue, by maintaining a cooperative effort with other participating agencies in the Counties of Santa Barbara, San Luis Obispo, and Ventura.
• Provide community-based fire protection through pre-incident planning, public education and training programs, as well as related non-emergency services.

Ensure that all personnel are properly trained to recognize professional standards of competence in the diverse areas of fire and emergency service that are demanded by the community.

Provides mandated training to meet legislative requirements and instruction to broaden the organizational skill set. The objectives of this sub-program are to:
• Provide effective technical rescue services ensuring
that personnel are trained and equipped in
specialized operations including, vehicle extrication;
confined space rescue; Urban Search and Rescue
(USAR); shore-based water rescue; and trench
rescue, by maintaining a cooperative effort with
other participating agencies in the Counties of Santa
Barbara, San Luis Obispo, and Ventura.
• Provide community-based fire protection through pre-incident planning, public education and training programs, as well as related non-emergency services. • Ensure that all personnel are properly trained to recognize professional standards of competence in the diverse areas of fire and emergency service that are demanded by the community.

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FIRE PREVENTION
Provides management of fire code enforcement and inspection services, performs plan checks, provides public fire safety and injury prevention education and information, and manages records.

The objectives of this sub-group are to:
• Provide fire prevention services through public education and regular fire inspections of businesses and places of assembly. This is accomplished through a community-based partnership where the Department provides fire safety and disaster preparedness education and awareness, and community members apply those principles in their daily lives. The focus of this partnership includes school programs, participation in community events, and advisory visits to businesses.
• Provide fire cause and origin investigative services and, in concert with the Police Department and the District Attorney, develop criminal cases involving arson and other violations of law. • Prevent or reduce the occurrence of hostile fires and other emergencies through the enforcement of State and local fire and life safety codes. This is accomplished through a plan review of new construction, tenant improvements, and related activities. Enforcement of fire and life safety codes is performed through the Department's hazard inspection and complaint program. Fire Prevention staff provides State-mandated inspections of multi-family residential units, including hotels, motels, apartments, and boarding houses per California Health and Safety Code. These activities are provided to the greatest extent possible within the fiscal limits established by the City.

Performance/Workload Measures

PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28

DEMAND/WORKLOAD
Emergency Calls for Service 22,092 24,794 25,376
Total Unit Responses 26,890 27,794 33,962
Fire Inspectors Response 108 35 164
Fire Inspections 989 1537 1000
Fire Investigations 39 155 160
Fire Suppression Training Hours 30,395 39,424 44,463
Mutual/Automatic Aid Given 424 753 1,300
Plan Checks 1,765 2,077 2,649
State Title 19 Inspections 93 96 110
CERT/Listos Program Participants 0 74 100
Life Safety Inspections – Assemblies 14 321 300
Life Safety Inspections – Hotels/Motels & Multi-family 639 629 635

EFFECTIVENESS/EFFICIENCIES
Emergency Response (within 5:00 Minutes) 75.5% 73.63% 70.0% Emergency Response (within 7:00 Minutes) 94.8% 93.19% 90.81% Plan Check Turnaround (within 7 Days) 47.2% 56.4% 58.0% City of Santa Maria 2026-28 Biennial Budget
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UTILITIES DEPARTMENT

DEPARTMENT OVERVIEW

PURPOSE
The mission of the Department of Utilities is to provide efficient utility services through the use of progressive innovation, excellent customer service, and the wise use of public resources for the long-term benefit of the
community. The Utilities Department is comprised of two operating divisions, Solid Waste and Water Resources,
and one support division, Business.

The Water Resources Division is responsible for delivering potable water for residential, commercial, industrial, and institutional purposes, as well as fire protection,
maintaining the sanitary sewer and storm sewer systems, and operating the Wastewater Treatment Plant (WWTP).

The Solid Waste Division is responsible for providing trash, mixed recycling, and organics collection services for residential and commercial accounts within the City’s service area, managing citywide street sweeping, and operating the Santa Maria Regional Landfill (SMRL). The Business Division is responsible for department administration, finance management, operations support, personnel management, and safety programs.

GOALS AND OBJECTIVES
GOAL DEPARTMENTAL GOALS FOR 2026-27

ADMINISTRATION
Fiscal Management • Develop a Compliance Pathway for water conservation regulations (“Making Conservation a
California Way of Life”) outlining implementation
timing, resource needs, and operational impacts.
• Evaluate electric refuse vehicle technology through
demonstrations and lifecycle cost analysis to inform
long-term fleet planning and sustainability efforts.
• Initiate a cost-of-service study to update the Water
and Sewer Rate Model in compliance with Proposition
218, ensuring legally defensible and financially
sustainable rates.

THE BUILT ENVIRONMENT
Well-maintained infrastructure –
including facilities, streets, parks,
and utilities
• Protect drinking water quality by initiating procurement for cleaning and maintenance of potable water
reservoirs, ensuring system reliability and regulatory
compliance.
• Initiate a sewer manhole surveying program to improve asset management data, strengthen capital planning,
and enhance long-term infrastructure sustainability.
• Achieve no less than 100 miles of sewer cleaning and
10 miles of video inspection annually through a
proactive maintenance program to reduce overflows,
extend asset life, and protect public health.
• Identify a preferred location for Well 16 to increase groundwater production capacity and improve water
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GOAL DEPARTMENTAL GOALS FOR 2026-27
for future growth.
• Complete planned Santa Maria River mining activities
to support landfill operational and post-closure
requirements, as conditions allow based on rainfall and reservoir release impacts.

ACCOMPLISHMENTS
The Utilities Department’s recent accomplishments include:
• Advanced compliance and modernization efforts at the WWTP through targeted operational upgrades and regulatory submittals, including: replacement of Primary Trickling Filter No. 1 distribution arms; a six-month sludge dewatering belt press pilot to address capacity constraints; submittal of the Climate Change Adaptation Plan, Total Dissolved Solids (TDS) Source Water Improvement Study, and Percolation Pond Technical Memorandum to the Regional Water Quality Control Board (RWQCB); and continued development of the Wastewater Master Plan with California Environmental Quality Act (CEQA) documentation. • Strengthened drinking water system reliability, quality, and resiliency through key capital projects, including: completion of the McClelland Water Line upgrade; Well 6-11 interconnection and restoration of Well 6; standby generator installations at Wells 12, 13, and 14; rehabilitation of Well 12; design and construction award of Well 15; structural evaluation of Reservoir 4; required lead and copper and EPA's Unregulated Contaminant Monitoring Rule (UCMR) 5 sampling; State approval of the City’s Cross-Connection Control Plan; and flushing of 3,400 hydrants with replacement of 68 aging units.
• Met Sewer System Management Plan (SSMP) goals by cleaning at least 100 miles of sewer with zero reportable sewer spills in 2025 and outperforming the industry benchmark of 1.25 spills per 100 miles.
• Delivered the Flare 3 Project at the SMRL, improving landfill gas system performance; transitioned landfill operations to a six-day schedule to optimize staffing and reduce costs; advanced landfill gas extraction well planning; began implementation of a new scale house software to modernize operations and improve tracking; completed the Proposition 218 process for Solid Waste Collection rates; and adjusted landfill disposal fees to sustain the Solid Waste Disposal Fund while remaining regionally competitive. • Coordinated with the Utility Billing Division on the utility billing software, SpryCIS, to automate and integrate systems for solid waste collection and water services. This effort helps to streamline operations, improve billing accuracy, reduce manual data entry, enhance customer service responsiveness, and provide more efficient reporting and financial tracking capabilities across the service areas.

NOTEWORTHY BUDGET HIGHLIGHTS
Water
In recent years, the City’s State Water supply delivered through the California State Water Project Coastal Branch has experienced multiple unexpected outages, temporarily disrupting one of the City’s two primary drinking water sources. In addition to these operational disruptions, long-term reliability of State Water deliveries has declined. A combination of prolonged drought conditions, reduced Sierra snowpack, regulatory constraints in the Sacramento-San Joaquin Delta, and land subsidence in the San Joaquin Valley has reduced the amount of water available for conveyance through the State Water Project. As a result, annual State Water allocations have remained low and are projected to continue fluctuating in the near term. This reduced reliability presents ongoing fiscal and water supply challenges. Lower allocations increase the City’s dependence on local groundwater supplies, driving higher groundwater production and treatment costs. In dry years, the City must also evaluate and potentially purchase supplemental water on the open market to meet community demand. To address these uncertainties, the Utilities Department continues to advance projects that enhance local groundwater resiliency and operational flexibility. These efforts are necessary to uphold the City’s City of Santa Maria 2026-28 Biennial Budget
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longstanding commitment to providing high-quality, reliable water service. Associated costs are funded through the Water Enterprise Fund and will require continued strategic financial planning to manage long-term supply risk.

For this budget cycle, the following summarizes significant Operating requirements for the Water Enterprise Fund.
• Increase funding for professional services and compliance software to strengthen asset management, cybersecurity, and regulatory reporting, including Computerized Maintenance Management System (CMMS) consulting, a cybersecurity assessment, and compliance management software, with Wastewater sharing a proportional cost. • Clean water storage reservoirs to protect water quality, and maintain system reliability and regulatory compliance.
• Invest in professional services funding to strengthen reliability, safety, and regulatory compliance of water supply and distribution infrastructure; complete Landscape Area Measurements (LAMs) to support accurate water use calculations and compliance with California’s SB 606 and AB 1668 requirements by July 1, 2027; and, evaluate and address vulnerabilities in the well header piping serving four potable water wells. • Increase funding for the purchase of State Water through the Central Coast Water Authority (CCWA), to meet annual water supply demands.
• Increase funding for the Hydrant Maintenance & Replacement and Meter Maintenance & Replacement Programs to ensure reliable fire protection infrastructure and accurate water measurement for revenue collection and leak detection.
• Increase funding to strengthen water quality system reliability, safety, and regulatory compliance.

Wastewater
In February 2022, the City’s Wastewater Treatment Plant (WWTP) was enrolled under the Central Coast Regional Water Quality Control Board General Permit, which establishes significantly more stringent treatment and discharge requirements. The City’s existing facilities cannot meet all permit requirements without substantial upgrades. Compliance represents one of the most complex and financially significant infrastructure initiatives facing the City. To establish a clear and responsible path forward, the City developed a Time Schedule Compliance Plan and a comprehensive Wastewater Master Plan. The Master Plan provides a 35-year roadmap identifying treatment alternatives, capital improvements, operational strategies, and capacity needs necessary to achieve regulatory compliance and accommodate future growth. Given the scale of the program, the City initiated an independent peer review to ensure the Plan is technically sound, cost-effective, and consistent with industry-best practices. Although the full scope of required WWTP modifications continues to be refined, total program costs may exceed $600 million. As planning is finalized, the City will gain greater clarity on project sequencing, cash flow needs, and funding strategies to manage these costs responsibly. All expenditures in the proposed budget will be borne by the Wastewater Enterprise Fund.

For the 2026-2028 budget cycle, the Department estimates minimum appropriation requirements of approximately $46 million to advance compliance efforts and position the City for subsequent design, permitting, and implementation phases.

For this budget cycle, the following summarizes significant Operating requirements for the Wastewater Enterprise Fund.
 Increase funding for professional services and compliance software to strengthen asset management, cybersecurity, and regulatory reporting, including CMMS consulting, a cybersecurity assessment, and compliance management software, with Water sharing a proportional cost.
 Establish the WWTP as a Utility Billing customer following completion of the Stowell to Black Road waterline project, reflecting new water usage connected to the City’s water system.

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 Invest professional services to perform a condition assessment of Digesters #1 and #3, informing rehabilitation needs and evaluating Digester #1 for use in the Phase I WWTP Project.  Rent specialized equipment to mechanically dry sludge and increase drying capacity on an ongoing basis to address constraints from increased sewer flows and rain events.  Increase professional services to support sewer system capacity evaluations and infrastructure assessments, including a Utilities Capacity Study, a citywide manhole survey to collect grade and rim elevation data, and SCADA support services.

Solid Waste Collections
The Department uses route optimization and customer service software for solid waste collections to provide real-time operational and service status to increase efficiencies; optimize operations and routing; monitor fleet performance; improve service and driver safety; and provide performance metrics and data to support diversion requirements and budget development.

For this budget cycle, the following summarizes significant Operating requirements for the Collections Enterprise Fund.
• Allocate professional services supporting collections operations and equipment maintenance, including fleet cleaning services to protect the solid waste collections fleet and processing green waste materials diverted at the SMRL Recycle Park. • Establish the ongoing purchase and replacement of residential carts and commercial dumpsters for refuse, recycling, and organics, ensuring compliance with regulations including CCR Title 14, AB 939, SB 1383, and AB 341, and supporting service growth and equipment lifecycle management.
• As Landfill disposal fees and recycling/diversion processing costs continue to increase, this drives higher operating expenses for the Collections Enterprise Fund. Operational costs reflect the combined impact of refuse disposal, organics processing, and recycling/diversion program requirements.

Solid Waste Disposal
As of early 2025, the City is no longer pursuing the future construction of the Integrated Waste Management Facility at Los Flores. With the remaining operational life of the SMRL estimated at approximately six years, the City must now strategically plan for long-term solid waste disposal capacity. The Utilities Department is evaluating options for the future disposition of Los Flores landfill permits and associated land assets to preserve flexibility and protect the City’s financial interests. These efforts are intended to establish a clear, financially responsible, and sustainable path forward for solid waste management beyond the remaining life of the current landfill.

Disposal fees at the SMRL were adjusted in January 2026 to generate additional revenue to support both operational and capital needs, including maintenance, equipment replacement, and future infrastructure improvements. These adjustments were carefully structured to remain competitive with neighboring disposal facilities, minimizing the risk of losing volume and revenue while maintaining service affordability for ratepayers. By setting fees that reflect the costs of current and anticipated operations, the City is strengthening the Solid Waste Disposal Fund to remain resilient and capable of supporting the long-term transition to future disposal alternatives.

For this budget cycle, the following summarizes significant Operating requirements for the Disposal Enterprise Fund.
 Allocate professional services supporting SMRL operations and equipment maintenance, including fleet cleaning services to protect landfill equipment and increase in service fees for ongoing operational management of the Recycle Park as required under the SMART agreement.
 Maintain CalRecycle-required financial assurance for landfill closure and post-closure obligations, reflecting updated cost estimates.

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DEPARTMENT ORGANIZATION
A complete schedule of the Department’s positions, summary of changes, and a detailed explanation of position changes can be viewed at the Personnel - Utilities on page 178.

Director of
Utilities
Solid Waste
Division
Collections
Customer
Service
Operations
Trash
Collection
Mixed
Recycling
Collection
Organics
Collection
Street
Sweeping
Disposal
Capital
Projects
Operations
Santa Maria
Regional
Landfill
Active Areas Closed Areas
Household
Hazardous
Waste Facility
Recycling
Park
Scale House
Regulatory
Compliance
Landfill
Compliance
Recycling &
Diversion
Compliance
Business
Division
Water
Resources
Division
Director of
Utilities
Solid Waste
Division
Business
Division
Department
Administration
Finance
Management
Operations
Support
Personnel
Management
Safety
Programs
Water
Resources
Division
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BUDGET OVERVIEW
A comprehensive discussion of the adopted budget and long-term financial outlook is available in the Five-Year Financial Plans section of this document for the Water Resources and Solid Waste funds.

Budget Summary by Expenditure Category - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

EXPENDITURE CATEGORY
Salaries & Benefits $ 13,196,525 $ 15,417,204 $ 22,221,624 $ 20,756,391 $ 21,264,137 Services & Supplies 57,884,331 49,002,744 81,742,346 78,233,775 75,191,512 Capital & Outside
Agencies
3,800,179 5,997,135 14,985,990 20,781,390 62,526,730
Debt Service 1,334,869 3,622,100 3,625,600 3,623,350 3,625,350 Transfers 1,691,273 2,863,511 2,863,511 3,389,983 3,389,383 Total Budget $ 77,907,176 $ 76,902,694 $ 125,439,071 $ 126,784,289 $ 165,997,112 Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FUND
FD620 – Water Fund $ 33,526,187 $ 17,118,798 $ 54,525,763 $ 58,061,915 $ 71,939,134 FD640 – Wastewater Fund 9,440,843 9,843,500 25,973,086 25,819,436 48,389,913 FD630 – Solid Waste
Collection Fund
20,815,814 21,864,202 25,295,277 24,312,069 24,852,029
FD610 – Solid Waste
Disposal Fund
13,843,957 27,974,162 16,692,225 17,590,869 17,549,036
Director of Utilities
Solid Waste Division Business
Division
Water
Resources Division
Engineering
Capital
Improvement
Program
Technology
GIS
SCADA
Water
Operations
Construction
Customer Service
Distribution
Production
Regulatory
Compliance
Conservation
Cross Connection
Control Program
Wastewater
Operations
Wastewater
Treatment Plant Septage Receiving Sewer Collectiions
Sanitary Sewer
Storm Sewer
Regulatory
Compliance
Industrial PreTreatment Program
MS4 Stormwater
Program
Wastewater
Treatment Plant
Laboratory
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Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD210 – Growth Mitigation
Fund
280,376 102,033 2,952,720 1,000,000 3,267,000
Total Budget $ 77,907,176 $ 76,902,694 $ 125,439,071 $ 126,784,289 $ 165,997,112

DIVISION/PROGRAM BUDGETS

BUSINESS DIVISION
The Business Division in Utilities provides enterprise leadership for the Department, overseeing the administrative, financial, operational, and workforce systems that support the Water Resources and Solid Waste Divisions. The Division ensures the delivery of reliable services and safeguards ratepayer resources through disciplined financial management, effective operational oversight, and strategic workforce administration.

WATER RESOURCES
Water Resources consists of several distinct areas: water, wastewater treatment, sewer collections (sanitary sewer and storm sewer), regulatory compliance, engineering/capital improvement program, and technology.

Water
The City is responsible for supplying potable water for domestic, industrial, landscape, and fire protection within the City’s service area.

Construction: Minor repairs of the water distribution system are performed by an in-house construction crew, including valve replacements, waterline leak repairs, and leaking service line replacements.

Customer Service: In-house staff perform technical and administrative support functions in the field and in the office related to customer service, meter reading, and billing of water. Fixed-base meter reading technology reduces meter-reading time and wasted water through leak detection.

Distribution: The City’s water distribution system is comprised of 344 miles of water mains, more than 10,080 in-line and fire hydrant water valves, and approximately 3,600 fire hydrants. Distribution work includes preventative maintenance of the system, such as flushing or hydrants and water mains, valve turning, and repair and replacement of water meters.

Production: Drinking water is produced from imported State Water supplies and groundwater wells located throughout the Santa Maria service area. Six active wells and three reservoirs (with a modified capacity of 19 million gallons) can supply a peak demand of over 20 million gallons per day. For firefighting purposes, these wells and reservoirs can supply up to 6,000 additional gallons per minute for at least six hours. When State Water is not available in sufficient quantities, groundwater wells produce water to maintain the City’s water supply.

The Santa Maria Valley Groundwater Basin has ample resources to provide 100 percent of the City’s water when necessary. In addition to groundwater wells and reservoirs, the City also operates and maintains the BDF where State Water and groundwater are blended before entering the City’s water system, ensuring that the City’s potable water supply meets safe drinking water standards. Additionally, the City provides water to the neighboring community of Nipomo in southern San Luis Obispo County, as required by the Santa Maria Groundwater Litigation, also referred to as the Stipulation. The delivery of this water reduces local demand on the groundwater basin, improving the overall health of the aquifer.

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Wastewater Treatment
The City is responsible for the treatment of domestic and industrial wastewater. This is accomplished by operating and maintaining the existing treatment plant and
ensuring treatable influent through the City’s
pretreatment program.

Septage Receiving: The WWTP accepts residential
septage and portable toilet waste and allows haulers to dewater and store grease. More than 90 septage
haulers are regulated under the City’s Industrial
Pretreatment Program.

Treatment Plant: The City treats and disposes an average of 6.12 million gallons of wastewater per day in conformance with the RWQCB and Air Pollution Control District (APCD) regulations. The WWTP utilizes a two-stage trickling filter and has a current hydraulic capacity of 8.0 million gallons per day, which can serve a population of up to 120,000. After removing and treating approximately 90 percent of impurities, the remaining treated effluent percolates into the groundwater basin. To ensure the treatment of wastewater complies with the APCD and the RWQCB standards, the WWTP operates within specific parameters. WWTP operations require appropriate conditions for complex biological populations to thrive. A preventive maintenance program extends the life of the wastewater facilities and consists of routine maintenance, such as lubrication, valve exercising, adjustments, and inspections on a daily, weekly, monthly, quarterly, semi-annual, and annual basis.

Sewer Collections
Sewage conveyed from privately maintained sewer laterals to City-maintained sewer mains is discharged to the WWTP. The goal of the City’s sewer maintenance program is to minimize collection system overflows and to inspect the system to identify deficiencies and make repairs.

Sanitary Sewer: Maintenance and repairs of the sewer collection system are performed in compliance with the City’s Sewer System Management Plan, as required by the State Water Resources Control Board (SWRCB). The City’s annual goal is to hydraulically clean 100 of the 259 miles of sewer lines and video inspect 10 miles of sewer lines, annually. Sewer lines are videoed to identify system deficiencies (e.g., cracked pipes, line offsets, root intrusions, manhole deterioration). Some repairs are addressed by the City, with contractors completing larger repairs.

Storm Sewer: The City’s storm sewer system includes drainage inlets, culverts, open-channel drainage ditches, and underground storm sewer that conveys stormwater to various retention and detention basins, which discharge to Santa Barbara County Flood Control and Water Conservation District facilities that can discharge to the Santa Maria River. The system helps prevent and control flooding within the City and promotes the recharge of underlying aquifers. The Utilities Department maintains the drainage inlets and storm sewer portions of the City’s storm drainage system. To minimize flooding impacts, the City works with Santa Barbara County Flood Control and Water Conservation District, the agency responsible for the maintenance of the Santa Maria River Levee and larger stormwater conveyances and basins within the City.

Regulatory Compliance
The Regulatory Compliance section administers regulatory permits and programs related to water, wastewater, and stormwater. Staff performs sampling, laboratory tests, engineering calculations, site inspections, plan reviews, issues permits, monitors and enforces compliance with regulations, and reviews other environmental reports and documents to verify the City is operating within permit parameters. Monthly and annual reports are prepared in conformance with permitting agency guidelines, including the APCD, Certified Unified Program Agency (CUPA), Division of Drinking Water (DDW), Department of Water Resources (DWR), Environmental Protection Agency (EPA), RWQCB, and SWRCB.

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Conservation: The City maintains a year-round water conservation campaign that includes public education and community events, and a variety of outreach, including complimentary residential home water visits for City water customers to assess opportunities to save water.

Cross Connection Control Program: Backflow prevention assemblies protect the City’s drinking water supply by preventing contamination caused by backflow from entering the water distribution system.

All new assemblies are inspected and tested. Upon passing the testing requirements, the assemblies are then included in the City’s cross-connection program. The cross-connection program maintains the database for all backflow assemblies and issues and tracks the annual test and maintenance reports for all assemblies. The database monitors more than 3,630 backflow prevention assemblies for more than 1,030 locations (including churches, schools, and businesses) and is utilized to send annual notices and enter test results for all assemblies. The City works with certified backflow prevention testers, regulated businesses, and developers, as well as State regulators, to monitor compliance.

Industrial Pretreatment Program: The Industrial Pretreatment Program protects the City’s sewer collection system and WWTP by regulating over 320 commercial businesses, 70 commercial haulers, and 8 significant industrial users within the City, ensuring compliance with all Federal, State, and local regulations. Routine pretreatment operations include permit application review and permit issuance, data review, plan review, inspections, sampling and monitoring, and communication with businesses and Federal and State regulators. The City issues permits to nearly 90 septage haulers that use the septage receiving station and tracks septage quantities received for billing purposes.

Stormwater Program: The National Pollutant Discharge Elimination System (NPDES) Phase II Permit regulates the City’s stormwater activities. As part of the NPDES Phase II Permit, the SWRCB adopted the General Permit for the Discharge of Stormwater from Small MS4s (WQ Order No. 2013-0001-DWQ) (General Permit). The General Permit requires the development and implementation of a stormwater program to reduce pollutant discharges to the maximum extent practicable. The main elements of the General Permit are education and outreach; public involvement and participation; illicit discharge detection and elimination; construction site stormwater runoff control; pollution prevention and good housekeeping; post-construction stormwater management; water quality monitoring; and program effectiveness assessment and improvement. Along with the implementation of the main elements of the Stormwater Program, preparation of in-depth documentation, analysis and reports, facilitation of multi-jurisdictional meetings and workshops, and contact with businesses, contractors, developers, and Federal, State, and local regulators are required. The Utilities Department facilitates the City’s compliance with the General Permit through coordination with other City Departments and completing reporting requirements.

WWTP Laboratory (Certification No. 1083): The onsite laboratory at the WWTP is certified in wastewater analysis by the SWRCB Environmental Laboratory Accreditation Program (ELAP). The laboratory’s main function is to analyze wastewater samples to determine compliance with the WWTP permit requirements. Additional functions are to analyze samples for WWTP process control and the Industrial Pretreatment Program. The laboratory also facilitates, coordinates, and reports on all potable water analyses, contracting with a commercial certified laboratory for all required drinking water analyses.

Engineering
Manages the Capital Improvement Program for Water Resources and plans, develops, and delivers various projects to meet the water and sewer infrastructure needs of the City.

Technology
Provide technical support to Utilities staff. This work includes field data collection and utility mapping, applying GIS technology to develop and integrate workflows, and developing maps, geo-datasets, graphics, displays, tables, and reports to provide geospatial data for decision-making in the Department, and for effective coordination with the City’s Information Technology Division. In addition, manages SCADA systems used in water and wastewater treatment to ensure that overall water quality is consistent and in compliance with State and Federal regulations. The use of SCADA allows for realtime data analysis and security, automation efficiencies, and reduced costs.

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Water Resources (C0280, CC0260)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD620 – WATER FUND
Salaries & Benefits $ 3,980,140 $ 3,881,068 $ 6,109,523 $ 5,723,626 $ 5,845,311 Services & Supplies 26,316,656 6,793,360 34,770,607 39,901,873 36,866,407 Capital & Outside Agencies 1,474,920 1,688,397 8,886,160 7,758,000 24,547,000 Debt Service 1,334,869 3,622,100 3,625,600 3,623,350 3,625,350 Transfers 419,602 1,133,873 1,133,873 1,055,066 1,055,066 Total Water Fund $ 33,526,187 $ 17,118,798 $ 54,525,763 $ 58,061,915 $ 71,939,134 FD640 – WASTEWATER FUND
Salaries & Benefits $ 2,501,599 $ 3,139,371 $ 4,871,855 $ 4,610,577 $ 4,688,669 Services & Supplies 6,181,374 4,529,955 17,314,187 8,561,456 8,269,501 Capital & Outside Agencies 384,220 1,742,959 3,355,830 11,928,390 34,712,730 Transfers 373,650 431,214 431,214 719,013 719,013
Total Wastewater Fund $ 9,440,843 $ 9,843,500 $ 25,973,086 $ 25,819,436 $ 48,389,913 FD210 – GROWTH MITIGATION FUND
Services & Supplies $ 159,660 $ - $ 2,952,720 $ - $ -
Capital & Outside Agencies 120,716 102,033 - 1,000,000 3,267,000 Total Growth Mitigation Fund $ 280,376 $ 102,033 $ 2,952,720 $ 1,000,000 $ 3,267,000 Total Water Resources $ 43,247,405 $ 27,064,330 $ 83,451,569 $ 84,881,351 $ 126,596,047 Performance/Workload Measures

PERFORMANCE MEASURE ACTUAL
2022-24*

ESTIMATED
2024-26**

PROJECTED
2026-28***
WATER

DEMAND/WORKLOAD
Number of Water Accounts 24,594 24,716 24,962
Water Demand (acre-feet) 12,694 12,992 13,641
Total Miles of Pipe 345 351 358
Total Number of Valves 10,100 10,302 10,508
Total Number of Fire Hydrants 3,611 3,683 3,747

EFFECTIVENESS/EFFICIENCIES
State Water Received (acre-feet) 5,051 5,731 6,018
Well Water Pumped (acre-feet) 7,643 7,261 7,624
Total Number of Valves Exercised 7,625 7,815 8,010

WASTEWATER

DEMAND/WORKLOAD
Number of Sewer Accounts 20,580 20,683 20,891
Average Wastewater Flow (MGD*) 7.03 6.14 6.45

EFFECTIVENESS/EFFICIENCIES
Average Effluent BOD^ Permitted (60 mg/L) 74 72 72
Maximum Effluent BOD^ Permitted (100 mg/L) 87 99 99
Average TSS^^ (mg/L) 39 39 39
Maximum TSS^^ (mg/L) 96 65 65

SEWER / STORM SEWER

DEMAND/WORKLOAD
Total Miles of Sewer Main 261 266 271
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PERFORMANCE MEASURE ACTUAL
2022-24*

ESTIMATED
2024-26**

PROJECTED
2026-28***
Total Miles of Storm Sewer 131 133 136
Total Number of Manholes 6,505 6,635 6,768

EFFECTIVENESS/EFFICIENCIES
Total Miles of Sewer Mains Cleaned 311 362 362
Total Miles of Sewer Mains Videoed 17 10 10
Total Number of Sewer Repairs Completed 11 20 20
^ CBOD refers to Carbonaceous Biochemical Oxygen Demand (CBOD). ^^ TSS refers to Total Suspended Solids.
* Actual reflects Fiscal Year 2024-25.
** Estimated reflects Fiscal Year 2025-26.
*** Projected reflects Fiscal Year 2027-28.

STATE WATER
This supplemental information is presented concerning the costs of importing water, including State Water costs and Dry Year Water Purchases.

1. How much does State Water cost?
State Water
Actual
FY 2024-25
Adopted
FY 2025-26
Estimated
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
Central Coast Water
Authority
$ 22,177,553 $ 24,600,000 $ 22,379,282 $ 24,708,629 $ 24,641,807 State Water Debt Service 3,622,100 3,625,600 3,625,600 3,623,350 3,625,350 Total Cost of State Water $ 25,799,653 $ 28,225,600 $ 26,004,882 $ 28,331,979 $ 28,267,157 Dry Year Water Purchases $ - $ 2,265,000 $ - $ 2,355,600 $ 2,449,824 The City receives State Water from CCWA. The costs include expenses for the infrastructure to deliver the water, as well as the costs for water treatment and delivery. CCWA provides estimated costs to the City for inclusion in the City’s Budget.

The City issued bonds to pay for portions of State Water infrastructure, in addition to local improvements for the delivery of State Water. The bond costs are also considered a portion of State Water Costs. The debt service for the bonds continues through 2035-36.

Dry Year Water Purchases is budgeted each year so the City has funds available should there be a need to supplement existing State Water allocation with additional water purchased on the open market. The water acquired through Dry Year Water Purchases is treated and delivered through CCWA.

2. What are the long-term financing obligations related to State Water? The table below provides estimated obligations for 10 years following the 2024-25 Budget.

FISCAL YEAR
ENDING JUNE 30

CENTRAL COAST

WATER AUTHORITY

STATE WATER DEBT

SERVICE

TOTAL COST OF STATE
WATER
2026 22,379,283 3,625,600 26,004,883
2027 24,708,629 3,623,350 28,331,979
2028 24,641,807 3,625,350 28,267,157
2029 25,004,532 3,626,100 28,630,632
2030 25,196,074 3,625,350 28,821,424
2031 25,484,167 3,622,850 29,107,017
2032 26,023,419 3,623,350 29,646,769
2033 26,598,394 3,622,750 30,221,144
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FISCAL YEAR
ENDING JUNE 30

CENTRAL COAST

WATER AUTHORITY

STATE WATER DEBT

SERVICE

TOTAL COST OF STATE
WATER
2034 27,192,932 3,624,800 30,817,732
2035 27,745,218 3,623,850 31,369,068
The above cost estimates are provided to the City by CCWA through 2035. The debt service payment reflects scheduled obligations to repay the refunded 2021A Water Resources Certificates of Participation in accordance with the aggregate debt service schedule. The Utilities Department continues to review long-term projections of revenues for all water-related expenses, including imported water costs.

SOLID WASTE
Solid Waste consists of several distinct areas: collections operations, landfill operations, street sweeping, regulatory compliance, and capital projects.

Collections Operations
The City continues to monitor, evaluate, and implement regulations related to solid waste collections, including Assembly Bill 341 Mandatory Commercial Recycling, Assembly Bill 1826 Mandatory Commercial Organics Recycling, and Senate Bill 1383 Short-Lived Climate Pollutant Reduction, which requires a significant reduction in organic waste and the recovery of edible food waste for human consumption, including development and implementation of an edible food recovery program. This regulation expanded organics recycling mandates to all residential properties, a significant change from Assembly Bill 1826, which only required organics recycling for commercial customers.

Trash Service: Fully automated side-loading
vehicles provide weekly trash collection of
over 22,800 carts (65- or 95-gallons) five days a
week and transport the waste to SMRL for
disposal. Front-loading vehicles provide trash
collection one to six days a week for more
than 3,940 dumpsters (2-, 3-, 4-, or 6-cubic
yard) and transport the waste to the Landfill
for disposal. In fiscal year 2024-25, the City
collected 70,575 tons of trash citywide.

Recycling Services: Mixed Recycling: The City’s mixed recycling program began in the 1990s and includes collecting, transporting, and processing mixed recyclable materials collected from City customers. Recycling materials are hauled to a regional transfer station before being sent for processing. In fiscal year 2024-25, the City diverted over 11,500 tons of mixed recycling from residential and commercial customers. Organics: The City’s residential green waste program began in 2011 with the biweekly collection of green waste (wood waste, grass clippings, flowers, etc.). In 2016, the City’s commercial food waste recycling program began with weekly pickups, and in 2021, the residential food waste recycling program began with a biweekly pilot program. The pilot program expanded citywide in 2022 to comply with Senate Bill 1383, and in 2025, the City expanded the biweekly organics collection operation to weekly collection for residential customers. Today, the City diverts all organic waste (green waste and food waste) by sending it to a local composting facility for reuse. In fiscal year 2024-25, the City diverted over 9,370 tons of organic waste from residential and commercial accounts.

Landfill Operations
The Santa Maria Regional Landfill provides solid waste disposal and recycling services to northern Santa Barbara County and southern San Luis Obispo County. In 2025, the landfill processed over 91,100 transactions and accepted approximately 281,745 tons of material.

Nearly 78,000 tons were utilized as onsite beneficial reuse, more than 60,420 tons were recycled, and approximately 143,325 tons were buried, resulting in the City diverting approximately 49 percent of its waste stream for 2025.

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Business and Household Hazardous Waste Programs: The landfill operates a Conditionally Exempt Small Quantity Generator (CESQG) Program at the Household Hazardous Waste Collection Facility located onsite, allowing businesses and non-households that generate up to 220 pounds of hazardous waste per month or 2.2 pounds of acutely hazardous waste per month to schedule appointments for the safe disposal of such waste.

Operations of the Household Hazardous Waste Collection Facility include the collection, categorization, packing, and packaging of all household chemicals and wastes for shipment to other off-site facilities. Households using the free facility for the safe disposal of such waste are limited to 125 pounds dry waste or 15 gallons per trip.

Landfill Gas, Surface, and Groundwater Monitoring: The landfill gas collection system has expanded to 100 gas collection wells and approximately six miles of landfill gas conveyance header lines. The wells are analyzed monthly, along with quarterly monitoring of 72 perimeter gas probes. The wells extract landfill gas (primarily composed of methane) produced from organic refuse decomposing, while perimeter gas monitoring probes verify gas does not migrate offsite. Landfill gas is transported through gas lines to the onsite power generation facility, and from there, to Marian Regional Medical Center’s cogeneration facilities to generate electricity. In the case where one or both facilities are down, the landfill gas is directed to onsite flares. The system is monitored and maintained for optimal operating performance. Semi-annual and annual reports are submitted to the APCD.

Surface monitoring verifies landfill gas is directed to flares and/or the power generation facility rather than to the atmosphere. Every quarter, surfaces are monitored for methane emissions and results are submitted in semi-annual and annual reports to regulatory agencies.

More than two dozen groundwater monitoring wells and half a dozen piezometers are monitored and sampled quarterly. These wells monitor the condition of the upgradient and downgradient groundwater around the Landfill. All operations and analytical results are reported on a semi-annual and annual basis to the RWQCB.

Recycling Park: The Recycling Park at the Landfill diverts appliances, metals, cardboard, tires, green waste, wood waste, electronic waste, construction and demolition materials (i.e., drywall, roofing shingles), inert materials (i.e., brick, tile, porcelain), and mattresses. In 2025, the Recycling Park diverted more than 24,000 individual mattresses and/or box springs.

Street Sweeping
Street sweeping is conducted in compliance with the City’s General Permit (MS4). This function also improves the appearance, safety, and health of the City through regular street and gutter line sweeping. Residential streets and paved alleys are swept biweekly, commercial streets are swept weekly, and 20 acres of City-owned parking facilities are swept monthly, totaling over 16,500 curb miles of City streets swept annually.

Regulatory Compliance
The Regulatory Compliance sections in Solid Waste administer regulatory permits and programs related to Landfill operations (disposal compliance) and solid waste collections (recycling diversion).

Monthly, quarterly, semi-annual, and annual reports are prepared in conformance with permit guidelines. For disposal compliance, laboratory tests, engineering calculations, site inspections, and other environmental monitoring is conducted to verify that the City is operating within permit parameters. For recycling diversion, audits and site inspections are conducted, and education and outreach efforts are implemented, monitored, and reported in compliance with various regulations.

This includes the significant tracking of diversion numbers from outside haulers related to organics, recycling, and concrete and demolition materials, which totaled over 30,200 additional tons of diverted materials in the community in fiscal year 2024-25.

Capital Projects
Plans, develops, and delivers various capital projects (including liner construction, landfill gas expansion, and groundwater protection systems) to meet the solid waste needs of the City.

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In addition, utilizes a drone surveying solution and data processing, visualization, and analysis software to support landfill management activities. This includes supporting construction efforts at the current landfill and WWTP, as well as developing fill plans for landfill cells, creating topography maps, and tracking resources, among other uses.

Solid Waste (CC0253, CC0252)
Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD630 – SOLID WASTE COLLECTION
FUND
Salaries & Benefits $ 4,184,869 $ 4,783,578 $ 6,200,550 $ 5,789,550 $ 6,057,984 Services & Supplies 14,819,714 14,792,899 15,806,249 17,604,234 17,875,760 Capital & Outside Agencies 1,334,714 1,626,747 2,627,500 - - Transfers 476,517 660,978 660,978 - -
Total Solid Waste Collection Fund $ 20,815,814 $ 21,864,202 $ 25,295,277 $ 24,312,069 $ 24,852,029 FD610 – SOLID WASTE DISPOSAL
FUND
Salaries & Benefits $ 2,529,916 $ 3,613,187 $ 5,039,696 $ 4,632,638 $ 4,672,173 Services & Supplies 10,406,927 22,886,530 10,898,583 12,166,212 12,179,844 Capital & Outside Agencies 485,609 836,999 116,500 95,000 - Transfers 421,504 637,446 637,446 697,019 697,019
Total Solid Waste Disposal Fund $ 13,843,957 $ 27,974,162 $ 16,692,225 $ 17,590,869 $ 17,549,036 Total Solid Waste $ 34,659,771 $ 49,838,364 $ 41,987,502 $ 41,902,938 $ 42,401,065 Performance/Workload Measures

PERFORMANCE MEASURE ACTUAL
2022-24*

ESTIMATED
2024-26**

PROJECTED
2026-28***

REFUSE COLLECTION / CARTS

DEMAND/WORKLOAD
Total Accounts Serviced 22,195 22,839 22,856
Total Tons Collected 32,030 33,009 33,669
Total Loads Hauled 4,239 4,533 4,624

EFFECTIVENESS/EFFICIENCIES
Tons Per Cart 1.44 1.45 1.47
Tons Per Load 7.56 7.28 7.28

REFUSE COLLECTION / DUMPSTERS

DEMAND/WORKLOAD
Total Dumpsters Serviced 3,835 3,942 4,007
Total Tons Collected 37,325 37,566 38,317
Total Loads Hauled 4,933 4,938 5,037

EFFECTIVENESS/EFFICIENCIES
Tons Per Dumpster 9.73 9.53 9.56
Tons Per Load 7.57 7.61 7.61

RECYCLING COLLECTION / CARTS

DEMAND/WORKLOAD
Total Carts Serviced 20,406 20,697 22,836
Total Tons Collected 5,225 5,356 5,463
Total Loads Hauled 1,482 1,512 1,542

EFFECTIVENESS/EFFICIENCIES
Tons Per Cart 0.26 0.26 0.24
Tons Per Load 3.53 3.54 3.54
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PERFORMANCE MEASURE ACTUAL
2022-24*

ESTIMATED
2024-26**

PROJECTED
2026-28***

RECYCLING COLLECTION / DUMPSTERS

DEMAND/WORKLOAD
Total Dumpsters Serviced 1,878 1,926 1,969
Total Tons Collected 5,977 6,174 6,297
Total Loads Hauled 1,487 1,402 1,430

EFFECTIVENESS/EFFICIENCIES
Tons Per Dumpster 3.18 3.21 3.20
Tons Per Load 4.02 4.40 4.40

ORGANICS COLLECTION / RESIDENTIAL ROUTES

DEMAND/WORKLOAD
Total Carts Serviced 20,017 20,274 23,081
Total Tons Collected 7,483 8,549 8,677
Total Loads Hauled 1,056 1,421 1,442

EFFECTIVENESS/EFFICIENCIES
Tons Per Cart 0.37 0.42 0.38
Tons Per Load 7.09 6.02 6.02

ORGANICS COLLECTION / COMMERCIAL ROUTES

DEMAND/WORKLOAD
Total Carts Serviced 517 711 705
Total Tons Collected 762 823 839
Total Loads Hauled 167 155 158

EFFECTIVENESS/EFFICIENCIES
Tons Per Cart 1.47 1.16 1.19
Tons Per Load 4.56 5.32 5.32

CITYWIDE STREET SWEEPING

DEMAND/WORKLOAD
Total Number of Loads 1,551 1,439 1,468
Total Street Sweeping Tonnage 4,444 3,524 3,594

EFFECTIVENESS/EFFICIENCIES
Total Curb Miles Swept 16,572 16,572 16,572
Operating Cost Per Curb Mile 4.21 4.20 4.52
* Actual reflects Fiscal Year 2023-24.
** Estimated reflects Fiscal Year 2024-25.
*** Projected reflects Fiscal Year 2025-26.

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PUBLIC WORKS DEPARTMENT

DEPARTMENT OVERVIEW

PURPOSE
The Department of Public Works/Engineering is responsible for ensuring that City-owned transportation infrastructure and facilities, transit services and capital improvement programs are designed, engineered, constructed, maintained and/or modified in a presentable and safe condition. The department coordinates a variety of activities and services including the preparation of plans and specifications for public works related construction projects; the design and inspection of public facilities; ensuring the proper installation of all public improvements made in new subdivisions, such as streets, curbs, gutters, sidewalks, water mains, sewer lines, and drainage; and provides custodial service to City facilities. The Streets division is responsible for preventive and regular maintenance of streets and appurtenant facilities. Santa Maria Regional Transit (SMRT) system provides a regional public transportation service.

GOALS AND OBJECTIVES
GOAL DEPARTMENTAL GOALS FOR 2026-27

ADMINISTRATION
Fiscal Management Implement updated Development Impact Fees to ensure new development proportionally supports infrastructure
capacity and long-term sustainability.

Optimize Service Delivery Implement a standardized workflow management system to improve project visibility, coordination, and delivery timelines.

SAFETY
Public Safety Deploy a full time concrete and asphalt maintenance crew to improve roadway safety and reduce hazard
response times.

Code Compliance Expand proactive right of way and infrastructure inspections to improve compliance and reduce long term
maintenance liabilities.

THE BUILT ENVIRONMENT
Well-maintained infrastructure –
including facilities, streets, parks,
and utilities
Implement a five-year pavement management plan to
systematically improve roadway conditions and optimize
capital investment.

Recreation and Parks Completion of Sports Complex Project in collaboration with Recreation and Parks. Complete Skyway ISEP and
Crosswalk HSIP safety improvement projects to improve
access to parks, schools and recreational facilities.

QUALITY OF LIFE
Housing Coordinate with Community Development to align
infrastructure capacity with housing development priorities and timelines.

Homelessness Continue coordinated cleanup of unhoused debris in partnership with Police and contracted service providers.

ECONOMIC DEVELOPMENT
Economic Development Partner with Community Development to implement a streamlined permitting process for priority development projects.

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ACCOMPLISHMENTS
The Public Works Department celebrates the following recent accomplishments:
• A total of 22 new fleet assets were purchased and five additional units refurbished, while 21 surplus assets were strategically sold. During this same period, staff completed 986 service requests, demonstrating continued operational responsiveness. • The in-house asphalt paver continued to be utilized to improve local streets through overlays, increasing efficiency and reducing reliance on outside contractors. Solar-powered street lights were installed in key locations to address streetlight deficiencies and improve public safety. • To enhance asset management, RoadAI technology was implemented, significantly reducing staff time required to collect Pavement Condition Index (PCI) data and improving long-term asphalt maintenance decision-making.
• Transit operations experienced substantial service enhancements and growth. Microtransit service was expanded to weekends, increasing mobility options for residents outside traditional bus hours. The Guadalupe Flyer service was successfully consolidated into the SMRT system, providing Guadalupe residents with a unified fare structure and streamlined regional access. • Route 8 (Tanglewood) service hours were extended in response to strong ridership growth, increasing from approximately 200 to more than 1,500 monthly trips. In September 2025, SMRT launched Route 210 Commuter Express, providing a direct weekday connection between the Crossroads Shopping Center in Santa Maria and the Downtown San Luis Obispo Transit Center. • SMRT recorded its fourth consecutive year of ridership growth, delivering over 681,000 rides.

Rider-focused technology improvements included deployment of a new electric fleet equipped with medical-grade air purification systems, AI-assisted safety technology, onboard Wi-Fi, and contactless SMRT Pay systems.
• A four-year transition to a 100 percent zero-emission fleet was successfully completed. With 40 battery-electric vehicles now in operation, SMRT is one of only two transit agencies in the nation to achieve this milestone ahead of the state-mandated 2040 deadline. • Following completion of electric bus charging infrastructure capable of charging up to 34 vehicles, SMRT deployed “Officer Bus-Ster,” a fully autonomous AI-assisted security robot providing 24/7 surveillance of the transit yard and protecting millions of dollars in infrastructure investment at a lower cost than traditional security services. • These efforts culminated in national recognition, with SMRT being named Large Transportation System of the Year by the Community Transportation Association of America (CTAA), honoring leadership in sustainability, innovation, and community-centered service. • Facility improvements were completed at the Transit Operations & Maintenance Facility with the full build-out of electric bus charging infrastructure. Coordination with PG&E has begun for development of a new SMRT Administration building and expanded charging hubs at the Transit Center and West Fairway Drive to support rapid “opportunity charging” for the electric fleet.

NOTEWORTHY BUDGET HIGHLIGHTS
• A comprehensive four-year Fleet Replacement Forecast was prepared to guide long-term capital planning and sustainability efforts.
• The transition to a fully electric fleet is projected to generate annual savings of $300,000– $400,000, driven by significantly fewer moving parts in electric vehicles and reduced exposure to volatile diesel fuel prices.
• $11.5 million in Transit and Intercity Rail Capital Program (TIRCP) funding was secured as part of a larger $51.3 million regional award to support the “Charging Forward” project. • Funding was allocated to advance development of a Bus Rapid Transit (BRT) system along the Broadway (SR 135) corridor, including dedicated lanes and level-boarding stations designed to reduce congestion and improve service reliability.

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DEPARTMENT ORGANIZATION
A complete schedule of the department’s positions, a summary of changes, and a detailed explanation of position changes can be viewed at Personnel - Public Works on page 174.

BUDGET OVERVIEW
Budget Summary by Expenditure Category - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

EXPENDITURE CATEGORY
Salaries & Benefits $ 8,767,457 $ 9,541,944 $ 12,007,905 $ 10,973,854 $ 11,119,230 Services & Supplies 25,626,925 27,002,759 31,804,882 32,819,886 53,721,707 Capital & Outside
Agencies
1,819,171 23,136,960 39,978,974 13,463,417 9,643,311
Debt Service 5,068 83,867 - - -
Transfers 1,484,337 1,924,792 2,724,792 3,248,822 3,248,822 Total Budget $ 37,702,958 $ 61,690,320 $ 86,516,553 $ 60,505,979 $ 77,733,070 Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FUND
FD100 - General Fund $ 4,443,156 $ 4,988,384 $ 6,213,438 $ 5,341,869 $ 5,390,161 FD560 - Fleet Services
Fund
5,301,060 14,792,362 11,336,113 8,707,774 8,677,782
FD210 - Growth Mitigation
Fund
397,906 1,384,021 2,123,477 3,250,000 15,590,000
FD463 - Gas Tax and
Transportation
Development Act Fund
6,050,298 3,130,630 6,066,045 6,502,026 6,770,367
FD464 - Developer / Grant
Street Projects Fund
3,326,814 2,321,599 7,913,480 3,001,029 10,693,281
Director of Public
Works Department
Engineering
Administration
Customer Service
Development
Review
Project Design /
Capital
Construction
Management Traffic
Facilities
Maintenance
City of Santa Maria 2026-28 Biennial Budget
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Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD660, FD670 - Public
Transit Funds
9,544,284 20,109,851 39,239,671 21,049,277 18,936,184
FD468 - Measure A Fund 6,823,767 10,530,210 10,181,757 11,188,710 10,825,501 FD310 – Capital ProjectsGeneral Fund1,815,673 4,433,263 3,442,572 1,465,294 849,794 Total Budget $ 37,702,958 $ 61,690,320 $ 86,516,553 $ 60,505,979 $ 77,733,070 Budget Summary by Program - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

PROGRAM
General Government
CC1120 – Engineering $ 3,442,936 $ 7,140,219 $ 6,708,298 $ 4,344,414 $ 3,759,186 CC1150 – Operations 2,815,893 2,281,429 2,947,712 2,462,749 2,480,769 Internal Services
C1150 – Operations 5,301,060 14,792,362 11,336,113 8,707,774 8,677,782 Public Ways & Facilities
CC1120 – Engineering 10,974,926 9,989,834 16,148,349 11,898,886 19,653,508 CC1150 – Operations 5,225,953 5,992,604 8,012,933 8,792,879 8,635,641 CC1170 – Transit 9,544,284 20,109,851 39,239,671 21,049,277 18,936,184 Special Revenues
CC1120 – Engineering 397,906 1,384,021 2,123,477 3,250,000 15,590,000 Total Budget $ 37,702,958 $ 61,690,320 $ 86,516,553 $ 60,505,979 $ 77,733,070

DIVISION/PROGRAM BUDGETS
GENERAL GOVERNMENT: ENGINEERING & FACILITIES MAINTENANCE The Engineering and Facilities Maintenance Divisions of the Public Works Department coordinate a variety of capital and maintenance-related activities and services for the City. The Engineering Division is responsible for design and construction of new public infrastructure including the preparation of plans and specifications for public works-related construction projects; the construction and inspection of these projects; the review, approval, and inspection of all public improvements made in new commercial, industrial, and residential subdivisions, such as streets, curbs, gutters, sidewalks, water mains, sewer lines, and drainage systems; and the coordination of all traffic and transportation issues.

The Facilities Maintenance Division ensures that City facilities are maintained and operated in a costeffective, energy-efficient, high-quality, and safe condition; and provides custodial service to City facilities.

Engineering - Administration
Plan overall programs of the Department and the various divisions so the policies and goals of the City Council are accomplished.

Coordinate, direct, and manage the activities of the Department's divisions to maximize efficient use of public resources.

Assist in the selection of employees hired in the Department.

Receive and route business contacts to the proper divisions courteously and efficiently.

Prepare documents and correspondence in a timely and professional manner.

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Investigate and route customer service requests.

Perform follow-up for the resolution of complaints and requests.

Maintain Department records so information can be retrieved as needed.

Engineering - Development Review
Review land development projects and building plan checks to assure compliance with City policies, ordinances, development conditions, and State and Federal regulations.

Review tentative maps to ensure compliance with City policies, ordinances, and development conditions. Address the adequacy of infrastructure in the areas of water resources and street improvements.

Review final maps to assure accuracy, completeness, and compliance with all applicable State laws and City ordinances.

Check public improvement plans to assure accuracy, completeness, and compliance with project approval.

Create, review, and implement master plans for City infrastructure.

Engineering - Project Design/Capital
Prepare plans, specifications, and bid documents, and coordinate environmental reviews for City capital improvement and maintenance projects cost-effectively and thoroughly.

Administer the preparation of plans, specifications, and bid documents for City capital improvement and maintenance projects prepared by consultants to assure cost-effective performance and thorough design.

Oversee and review technical reports prepared by private consulting firms to assure thorough analysis is performed cost-effectively.

Interface with the Santa Barbara County Association of Governments to secure funding and coordinate roadway and transit planning efforts.

Engineering - Construction Management
Inspect and administer the construction of City public works projects to assure conformance with plans and specifications, and projects are completed on schedule and within budget.

Inspect the construction of public improvements, installed with private development projects, to assure compliance with development conditions and State and Federal regulations.

Assure that all construction conforms to project plans and City standard drawings and specifications.

Issue encroachment permits, in a timely manner, for various utilities and developers performing work in City rights-of-way and interface with other agencies to coordinate construction work in the City rightsof-way.

Engineering - Traffic
Respond to requests from customers for resolution of traffic problems and issues by investigating, analyzing, and providing recommendations for corrective action, when necessary, to the City Traffic Committee and the City Council.

Perform annual traffic counts to support recommendations for capital improvements, and to respond to regional transportation program requirements, including the maintenance of the City’s Traffic Model.

Perform speed surveys to support law enforcement needs as traffic patterns change over time.

Investigate traffic conditions at intersections to assure traffic operations are efficient and safe.

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Specify, analyze, and review various types of traffic studies to support the processing of development applications.

Provide traffic engineering recommendations to traffic operations maintenance crews to assure that traffic signal timing sequences operate correctly with traffic flow; that traffic markings and signs conform to current regulations; and that curb zoning and parking conditions make efficient use of available space.

Facilities
Provide technical services to City departments by operating and maintaining facilities and equipment; analyzing energy efficiency opportunities; monitoring mechanical/electrical systems for optimization of operation; conceiving new maintenance projects; budgeting for and maintaining adequate tools, material, and information to assure effective progress on scheduled work. Facilities include 50 plus buildings and support facilities, 3 parking structures, and several emergency communication facilities.

Assure City facilities are maintained in a presentable and safe condition, provide a comprehensive preventive maintenance program for City facilities and equipment, and lend assistance to other departments that implement a Department-specific preventive maintenance program.

Estimate and coordinate minor additions, remodels, renovations, equipment upgrading, and monitoring for energy conservation of gas and electricity.

Coordinate and provide custodial services to 14 City facilities.

Implement accessibility improvements of City facilities in compliance with the Americans with Disabilities Act.

Engineering & Facilities (CC1120, CC1150)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD100 – GENERAL FUND
Salaries & Benefits $ 3,387,601 $ 3,969,570 $ 4,874,429 $ 4,153,959 $ 4,202,251 Services & Supplies 1,051,292 1,018,814 1,339,009 1,187,910 1,187,910 Capital & Outside Agencies 4,263 - - - -
Total General Fund $ 4,443,156 $ 4,988,384 $ 6,213,438 $ 5,341,869 $ 5,390,161 FD210 – GROWTH MITIGATION FUND
Services & Supplies $ 285,873 $ 1,220,345 $ 2,000,000 $ 750,000 $ 13,250,000 Capital & Outside Agencies 112,034 163,676 123,477 2,500,000 2,340,000 Total Capital Projects-General Fund $ 397,906 $ 1,384,021 $ 2,123,477 $ 3,250,000 $ 15,590,000 FD310 – CAPITAL PROJECTSGENERAL FUND
Services & Supplies $ 56,223 $ 83,777 $ - $ 30,000 $ -
Capital & Outside Agencies 1,759,450 4,349,486 3,442,572 1,435,294 849,794 Total Capital Projects-General Fund $ 1,815,673 $ 4,433,263 $ 3,442,572 $ 1,465,294 $ 849,794 FD463 – GAS TAX AND

TRANSPORTATION DEVELOPMENT

ACT FUND
Services & Supplies $ 5,085,436 $ 2,027,393 $ 4,960,110 $ 4,893,987 $ 5,162,328 Capital & Outside Agencies 57,933 44,356 - - -
Transfers 655,492 650,935 650,935
Total Gas Tax and Transportation
Development Act Fund
$ 5,798,860 $ 2,722,684 $ 5,611,045 $ 5,547,026 $ 5,815,367 City of Santa Maria 2026-28 Biennial Budget
Public Works Department
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Engineering & Facilities (CC1120, CC1150)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD464 – DEVELOPER / GRANT STREET

PROJECTS FUND
Services & Supplies $ 3,326,814 $ 2,212,885 $ 287,000 $ 2,951,029 $ 10,693,281 Capital & Outside Agencies - 108,714 7,626,480 50,000 - Total Developer / Grant Street
Projects Fund
$ 3,326,814 $ 2,321,599 $ 7,913,480 $ 3,001,029 $ 10,693,281 FD468 – MEASURE A FUND
Services & Supplies $ 576,670 $ 2,753,962 $ 1,335,000 $ 3,319,831 $ 3,113,860 Capital & Outside Agencies 1,272,581 2,191,589 1,288,824 31,000 31,000 Total Measure A Fund $ 1,849,251 $ 4,945,551 $ 2,623,824 $ 3,350,831 $ 3,144,860 Total Engineering & Facilities $ 17,631,661 $ 20,795,503 $ 27,927,836 $ 21,956,049 $ 41,483,463

FLEET SERVICES
The Fleet Services Division delivers vehicle and equipment maintenance, replacement, fueling, and regulatory compliance services in an efficient, fiscally responsible, and customer-focused manner. The Division supports City departments by providing reliable, cost-effective equipment through the City’s Fleet Equipment Program.

Preventive Maintenance Program
Fleet Services operates a comprehensive preventive maintenance program that exceeds industry standards. Proactive inspections and repairs reduce unexpected breakdowns, extend asset life, and ensure dependable operation of City vehicles and equipment.

Equipment Replacement Program
The Equipment Replacement Program uses a structured, annual evaluation process to identify vehicles and equipment due for replacement. This approach balances asset life extension with timely replacement, supported by detailed specification development to ensure accurate budgeting and smooth fleet integration.

Automated Fueling Program
Fleet Services manages the City’s automated fueling system, ensuring secure fuel acquisition, distribution, and usage tracking. Discounted fueling access is extended to public transportation agencies, and the installation and maintenance of EV charging infrastructure supports the City’s sustainability goals.

Testing and Compliance Programs
Fleet Services oversees all required testing and regulatory compliance programs, including the CHP Biennial Inspection of Terminals (BIT), annual smog testing, In-Use Off-Road Diesel, Portable Engine Registration, Heavy Duty Inspection/Maintenance Regulation, and Advanced Clean Fleet (ACF)regulations. These programs ensure compliance with state mandates (to purchase battery electric trucks by 2030) while advancing emissions reduction and zero-emission fleet objectives.

Fleet Services (CC1150)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD560 – FLEET SERVICES FUND
Salaries & Benefits $ 1,884,887 $ 1,909,215 $ 2,294,355 $ 2,171,059 $ 2,194,671 Services & Supplies 5,974,526 5,496,932 7,263,860 5,091,452 5,091,452 City of Santa Maria 2026-28 Biennial Budget
Public Works Department
226
Fleet Services (CC1150)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
Capital & Outside Agencies (2,761,789) 7,000,697 1,476,247 976,121 922,517 Debt Service 3,797 83,867 - - -
Transfers 199,639 301,651 301,651 469,142 469,142
Total Fleet Services Fund $ 5,301,060 $ 14,792,362 $ 11,336,113 $ 8,707,774 $ 8,677,782 Total Fleet Services $ 5,301,060 $ 14,792,362 $ 11,336,113 $ 8,707,774 $ 8,677,782 PUBLIC WAYS & FACILITIES: STREET MAINTENANCE
The Street Maintenance Division provides managerial oversight for the City’s rights-of-way. The goal is to provide a well-maintained street system for pedestrian, bicycle, and vehicle traffic within the City limits.

The program consists of several subprograms that address maintenance.

Flexible Pavement Maintenance Program
The Flexible Pavement (asphalt) Maintenance Program addresses three basic elements of roadway maintenance. First, the pothole element, which is typically driven by rainfall, addresses smaller areas and is maintained by in-house asphalt patching. A telephone hotline is available at (805) 925-0951 extension 2229 so the public may report potholes unknown to City maintenance staff. Second, the general pavement element addresses small areas of roadway in need of subgrade, base, or surface maintenance, and is performed by City staff. Third, the Pavement Management System (PMS) which is a computerized process of planning the maintenance and repair of the roads in Santa Maria to optimize the pavement condition over the entire road network. The PMS data is used to select the roads to be maintained and the treatment to use. Typical treatments are reconstructing, overlay, slurry seal, and chip seal. These treatments are performed by outside contract services. The City’s Pavement Condition Index is rated at 68 out of 100 in Streetsaver and 79 out of 100 utilizing Road AI.

Street Light Maintenance Program
The Street Light Maintenance Program supports street light services in the areas of general maintenance, system upgrades, inspections, design, and damage caused by vehicular accidents.

General maintenance is needed when a light is not working or not functioning correctly. Staff is notified of the issue by public calls or messages left on the street light hotline. Additionally, staff perform streetlight checks twice monthly, in high-traffic commercial areas. System upgrades are developed, designed, and scheduled. Included are street light pole replacement, fixture upgrades, and service modifications. The inspection element involves the inspections of newly installed streetlights and service points, typically driven by new development. The design element addresses street light system design for new lighting systems in areas of new development and areas where existing lighting will be improved. Staff addresses accidents involving streetlights 24 hours a day, seven days a week.

Traffic Signal Maintenance Program
The Traffic Signal Maintenance Program provides maintenance services to the City’s traffic signal system. The program includes preventive maintenance; component failure service; and system upgrades. Monthly visual inspections are performed as a preventive measure. In addition, a detailed inspection and preventive maintenance regime is performed, quarterly, on all 50 City traffic signals.

Each traffic signal cabinet’s conflict monitor is evaluated semi-annually. Component failures rarely occur; therefore, these are addressed on an as-needed basis. System upgrades include light-emitting diode (LED) retrofits, preemption installations, Bluelight enforcer technology, countdown pedestrian heads, speed feedback signs, pedestrian crossing warning beacons, and signal coordination to recommended corridors within the City. The City pays for electrical power costs of 38 Caltrans traffic signals but does not perform maintenance of these installations.

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Pavement Marking Program
The Pavement Marking Program provides maintenance of roadway delineation, striping, stenciling, and curb painting. The striping element addresses all painted roadway striping that separates the roadway’s direction of travel and defines the width of roadway lanes traveling in the same direction.

The stenciling element provides for: clear and legible speed limits, school and pedestrian crossings, stops, yields, turn arrows, and railroad crossing pavement markings. The curb painting element defines areas that have parking restrictions, such as no stopping/no parking, loading/unloading, and limitedtime parking.

Sign Maintenance Program
The Sign Maintenance Program addresses maintenance, installation, and removal of all regulatory, warning, guide, and street name signs under the purview of the City including guide, bike route, airport, hospital and street name signs. Examples of the various sign categories include regulatory, stop, speed, no parking, warning, yield, school zone, and road narrows signage.

Concrete Maintenance Program
The Concrete Maintenance Program provides for the maintenance of sidewalks, curbs and gutters.

These service needs are typically driven by tree root damage, age of the surface, or mandated changes, as in handicap ramps. Each maintenance element, replacement or grinding, is scheduled in areas that present the highest risk. The replacement process involves the immediate marking of hazards, temporary patching to mitigate hazards, removal of damaged concrete and replacement with new concrete. Concrete grinding is performed on a limited basis and involves grinding concrete elevation differences of less than one inch. These maintenance tasks are performed by City staff, as well as outside contract services.

Weed Abatement Program
The Weed Abatement Program is structured to address right-of-way abatement needs within the City.

This program uses City staff labor. It aids in fire protection, mitigates health threats from pest vectors and addresses visual nuisances by abating areas under the maintenance responsibility of City rightsof-way.

Alley Maintenance Program
The Alley Maintenance Program addresses annual alley grading, typically before the rainy season, and annual weed control. Both services, as well as trash cleanup, are performed on an as-needed basis.

Street Maintenance (CC1150)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD463 - GAS TAX AND

TRANSPORTATION DEVELOPMENT

ACT FUND
Services & Supplies $ 251,437 $ 407,946 $ 455,000 $ 955,000 $ 955,000 Total Gas Tax and Transportation
Development Act Fund
$ 251,437 $ 407,946 $ 455,000 $ 955,000 $ 955,000
FD468 - MEASURE A FUND
Salaries & Benefits $ 2,442,742 $ 2,863,227 $ 3,693,743 $ 3,558,076 $ 3,616,840 Services & Supplies 2,013,783 2,120,030 2,462,788 2,328,083 2,328,083 Capital & Outside Agencies - - - 216,002 -
Transfers 517,990 601,402 1,401,402
Total Measure A Fund $ 4,974,515 $ 5,584,659 $ 7,557,933 $ 7,837,879 $ 7,680,641 Total Street Maintenance $ 5,225,953 $ 5,992,604 $ 8,012,933 $ 8,792,879 $ 8,635,641 City of Santa Maria 2026-28 Biennial Budget
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Performance/Workload Measures

PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28

DEMAND/WORKLOAD
Street Light Maintenance
Total City-Owned Street Lights 6,966 7,201 7,204
Total PG&E-Owned Street Lights 138 138 138
Street Light Maintenance Hours 3,487 3,487 3,835
Traffic Signal Maintenance
Total City-Owned Traffic Signals 50 54 55
Traffic Signal Maintenance Hours 3,584 3,584 3,942
Sign Maintenance Hours 3,651 4,790 4,900
Pavement Marking Maintenance Hours 6,398 7,037 7,7740
Flexible Pavement Maintenance
Center Line Miles 234 235 236.5
General Maintenance Hours 7,725 7,725 8,497
Overlay/Chip Preparation Hours 8,455 8,455 9,301
Concrete Project Maintenance Hours 4,578 15,254 16,779
Weed Abatement Maintenance Hours 2,542 1,778 2,160
Alley Maintenance
General Maintenance Hours 837 837 920
Grading Hours 708 708 779
Weed Abatement Maintenance Hours 419 270 344.5

EFFECTIVENESS/EFFICIENCIES
Pothole Maintenance Hours 2,733 2,733 3,007
Concrete Request Maintenance Hours 2,871 390 429
SPECIAL REVENUES: GROWTH MITIGATION
Assembly Bill 1600 was enacted in 1987; thereby allowing local governments to enact ordinances establishing development fees to finance the cost of growth-related capital improvements. The legislation provided the framework for establishing growth mitigation fees for development. The City’s Growth Mitigation Fee Ordinance captures revenues and distributes the costs of City-wide infrastructure needs associated with new development and the existing community, to assure that adequate funding is available for the construction of new capital assets necessary to accommodate a growing population and service area.

This budget unit was established to account for the collection of developer/growth mitigation fees to mitigate the impact that growth has on public infrastructure. This budget unit serves as a Special Revenue Fund. Adopted funding for various capital projects can be found in the Capital Projects section of this document.

Growth mitigation fees represent only one element of capital project financing. These fees are used in concert with other funding mechanisms, such as gas tax, local transportation funds, Measure A (county-wide sales tax), and grants to provide the necessary infrastructure for planned and orderly growth.

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PUBLIC WAYS & FACILITIES: PUBLIC TRANSIT
The Santa Maria Regional Transit (SMRT) system provides local and regional public transportation services, as mandated under State and Federal regulations, for the transit needs of the Santa Maria urban area and neighboring communities.

Local Fixed Route (General Public)
The Local Fixed Route program has the objective to provide a safe, efficient, reliable, and comfortable local transit service for the public, which includes the elderly and those with disabilities. During 2026-28 the program will continue an aggressive marketing program and the operational actions necessary to meet the basic mobility needs of the residents within the service area. The program will work to increase the cost efficiency and productivity of the system by adjusting and modifying routes and schedules using service-planning strategies.

Americans with Disabilities Act (ADA) Paratransit Service The ADA Paratransit service will continue to provide curb-to-curb reservation-based paratransit service to meet the needs of the elderly and persons with disabilities who cannot use fixed-route services, as required by the ADA of 1990. The goal remains to provide safe, efficient, reliable, and comfortable transit service.

Regional Transit Services
Routes 20 and 30 provide commuter-based public transportation. Route 20 provides service from Santa Maria to Los Alamos, Buellton, Solvang, and Santa Ynez. Route 30 provides service between Santa Maria, Vandenberg Space Force Base, and Lompoc. These routes allow us to serve our riders transit needs in the northern Santa Barbara County urbanized area.

The Clean Air Express is a regional transit service, which provides commuter-based public transportation connecting the cities of, Buellton, Solvang, and Santa Barbara. The service was initiated by the Santa Barbara Air Pollution Control District and continued by the Santa Barbara County Association of Governments.

Route 210 is a new regional transit service provided by SMRT. This service provides commuter-based public transportation, connecting Santa Maria and San Luis Obispo. This route is funded with Federal and State funds and passenger fares.

Public Transit (CC1170)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
066, 067 - PUBLIC TRANSIT
FUNDS
Salaries & Benefits $ 1,052,227 $ 799,931 $ 1,145,378 $ 1,090,760 $ 1,105,468 Services & Supplies 6,915,250 7,394,101 9,271,115 11,312,594 11,939,793 Capital & Outside
Agencies
1,464,320 11,545,015 28,452,374 8,255,000 5,500,000
Debt Service 1,271 - - - -
Transfers 111,216 370,804 370,804 390,923 390,923
Total Public Transit Funds $ 9,544,284 $ 20,109,851 $ 39,239,671 $ 21,049,277 $ 18,936,184 Total Budget $ 9,544,284 $ 20,109,851 $ 39,239,671 $ 21,049,277 $ 18,936,184 Performance/Workload Measures

PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28

DEMAND/WORKLOAD
Passengers
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PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28
Fixed Route 978,964 1,250,747 1,500,000
ADA Paratransit 31,655 20,007 25,000
Fixed Route
Fare Box Ratio 7% 6% 6%
Cost Per Passenger $15.34 $13.06 $12.00
Passengers Per Service - Hour 8.63 9.04 8.53
Passengers Per Revenue - Mile 0.56 0.61 0.70
Revenue/Hours $20.82 $16.66 $6.91
Revenue/Miles $1.36 $1.21 $0.56
ADA Paratransit
Fare Box Ratio 5% 3% 12%
Cost Per Passenger $5.04 $9.43 $8
Passengers Per Service - Hour 2.98 1.82 2.00
Passengers Per Revenue - Mile 0.20 0.14 0.15
Revenue/Hours $25.79 $22.59 $7.70
Revenue/Miles $1.69 $1.80 $0.59
City of Santa Maria 2026-28 Biennial Budget
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RECREATION AND PARKS DEPARTMENT

DEPARTMENT OVERVIEW

PURPOSE
The Recreation and Parks Department's mission is to enrich the lives of the residents of Santa Maria through quality recreation programs and services; and to provide safe and well-maintained facilities and parks, while anticipating the changing needs of the community. The Department manages and maintains 282 acres of developed parkland across 34 neighborhood and community parks, a portion of the 1,774-acre Los Flores Ranch Open Space and
173-acres of Special Districts. Key facilities include the Abel Maldonado Community Youth Center,
Hagerman Softball Complex, Paul Nelson Aquatics
Center, Elwin Mussell Senior Center, Veterans’
Memorial Center, and additional community centers
throughout the city.

The Department delivers a wide range of programs
and services that promote health, wellness, and community engagement, including aquatics, youth and adult sports, senior and therapeutic services, Special Olympics, community classes and events, youth and teen programs, public art initiatives, and cultural events. The Department also enhances environmental quality through management of the City’s Urban Forest Program.

GOALS AND OBJECTIVES
GOAL DEPARTMENTAL GOALS FOR 2026-27

ADMINISTRATION
Fiscal Management Pursue responsible budgeting, grants, partnerships, sponsorships, and cost-recovery strategies that support sustainable recreation programs, park maintenance,
facility operations, public art, and capital improvements.

Optimize Service Delivery Improve access, responsiveness, and communication for recreation registration, facility reservations, park
maintenance requests, community events, and publicfacing department services.

SAFETY
Public Safety Maintain safe parks, facilities, trails, and events through Park Ranger services, interdepartmental coordination,
emergency preparedness, lighting and visibility
improvements, and proactive issue reporting.

THE BUILT ENVIRONMENT
Well-maintained infrastructure –
including facilities, streets, parks,
and utilities
Develop and implement maintenance and capital
improvement priorities for parks, playgrounds, sports fields, recreation facilities, trails, landscaping, trees, public art, and related amenities.

Recreation and Parks Create, renovate, and activate welcoming, accessible, safe, and engaging parks and recreation spaces that
support seniors, youth, families, and underserved
neighborhoods.

QUALITY OF LIFE
Recreation and Parks Provide inclusive and engaging recreation programs for youth, teens, seniors, and families, including sports, arts, wellness, aquatics, cultural programs, special events, and adaptive opportunities.

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GOAL DEPARTMENTAL GOALS FOR 2026-27
Housing Coordinate as needed with housing and planning efforts to ensure future residential growth considers park access, recreation amenities, open space, and quality-of-life
needs.

ECONOMIC DEVELOPMENT
Economic Development Support local economic vitality through community events, tournaments, public art, downtown and park activation,
facility rentals, partnerships, and programs that attract residents and visitors.

ACCOMPLISHMENTS
The Recreation and Parks Department celebrates the following accomplishments:

Parks Division:
• Completed and opened Taylor Street Neighborhood Park
• Completed and opened Dejoy Street Neighborhood Park
• Completed and opened Battles Road pedestrian and bike path. • Broke Ground on Santa Maria Sports Park
• Significant progress on Japanese Community Center and grounds Recreation Division:
• Created a new collaboration with Allan Hancock College for Dia de Los Muertos Festival • Recorded over 5,000 participant check-ins at the Elwin Mussell Senior Center, representing a 2% increase.
• Abel Maldonado Youth Center Participant entries increased from 8,200 to 9,492, an increase of +15.8%.
• Over 4,150 swim lessons taught at the Paul Nelson Aquatics Center. • Over 5,000 hours used by individuals, organizations, leagues, and clubs at City sports fields and courts.

City Rangers:
• Hosted Impact Teen Driving (Distracted Driving Awareness) • Participated in Autism Awareness Month (Sold limited edition shoulder patches and wrapped a patrol vehicle in honor of Autism Awareness Month)
• Offered numerous Ride 3 classes focusing on rider safety • Participated in community engagement events; National Night Out, Elementary Career Days, Read Across America, and the Special Olympics Law Enforcement Torch Run. • Under the Tobacco Retail Enforcement Grant, the Rangers have successfully permitted over 70 retailers and have reduced the availability of illegally flavored tobacco products within the community.

NOTEWORTHY BUDGET HIGHLIGHTS
Administration and Recreation:

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• The Department is proposing to increase fees by approximately 25% to 30% for use of sports fields and picnic sites, and the rental of facilities. This increase is projected to generate an additional $400,000 in revenue over the next 2-year budget cycle. • With the opening of the Japanese Community Center, revenue over the next two-year budget cycle is projected to be $500,000.
• The Santa Maria Sports Complex is scheduled to open for public use in fiscal year 2027-28, and is expected to generate revenue of approximately $120,000 in the first year of use. • Many of the City’s parks have aging equipment that is 10-15 years old and needs replacement to maintain required safety standards. As parts for the aging equipment are difficult to come by or are no longer available, the playgrounds will need to be replaced on a regular recurring cycle. Staff is planning to replace at least 1 playground annually. • Funding is provided for tree trimming to support the City’s urban forest management and to enhance safety at all City parks. This will assist in preventing falling limbs and damage to property or people, and to maintain the health of trees within the City’s urban forest. • Park furnishings at various parks will be replaced. The purpose is to address rehabilitation needs due to the significant demands associated with growth-related use and emergency repairs at the City’s 28 parks and 11 facilities. This funding would be used as needed to further address potential safety hazards and/or more costly repairs if unattended. • Funding is provided for stewardship management at Los Flores Ranch Park, including maintenance and repair of trails, fire breaks, fencing, roadways, storage facilities, and to purchase needed equipment.

Landscape Maintenance Services:
• The Betteravia Plaza Special Benefit Zone will include the area bounded by Betteravia Road, Blosser Road, Carmen, and the Santa Maria Railroad. Created in 2018, this new tract began construction in the spring of 2021 and will consist of residential and commercial elements. This area includes street trees, roadside landscaping, and a bike and walking path, with recreational amenities.
• With expected completion in the next two-year budget cycle, the Blosser Ranch project (bordered by Stowell Road to the north, Blosser Road to the west, Battles Road to the south, and the Santa Maria Valley Railroad to the east) will include residential, retail, a school site, and the 19-acre Santa Maria Sports Complex.
• With the Southeast District budget continuing to experience a structural deficit, this district was excluded from the annual maintenance contract. To eliminate the deficit, all landscape and maintenance work in this district is performed by City Park Operations employees, until such time that this district’s budget becomes solvent.

Parking & Lighting Maintenance:
• The City continues to ensure that the landscaping, parking lot, and lighting of the Stowell Center, one of Santa Maria’s busiest commercial shopping areas, are maintained in a safe, clean, attractive, and professional manner to attract and encourage residents to patronize the Stowell Center businesses.

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DEPARTMENT ORGANIZATION
A complete schedule of the department’s positions, a summary of changes, and a detailed explanation of position changes can be viewed at Personnel -Recreation & Parks on page 176.

Director of
Recreation & Parks
City Rangers Administration
Customer Service
Support Services
Facilities/Support
Section
Recreation
Senior Services
Aktion Club of
Santa Maria
Community Events
Youth Programs
Mayor's Youth Task
Force on Youth
Safety
Youth and Adult
Sports
Aquatics
People for Leisure
and Youth Inc.
(PLAY, Inc.)
Parks and Urban
Forest
Mall Grounds and
Parking
Mosquito Control
West Nile Virus
Los Flores Ranch
Park
Special Landscape
Districts
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BUDGET OVERVIEW
Budget Summary by Expenditure Category - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

EXPENDITURE CATEGORY
Salaries & Benefits $ 9,092,624 $ 10,838,042 $ 13,403,231 $ 11,218,233 $ 11,406,851 Services & Supplies 10,148,024 9,142,411 9,279,387 9,182,769 9,182,769 Capital & Outside
Agencies
7,518,558 5,393,970 6,688,000 765,000 765,000
Transfers 2,229,505 2,907,264 2,340,512 1,963,484 1,963,484 Total Budget $ 28,988,711 $ 28,281,686 $ 31,711,130 $ 23,129,486 $ 23,318,104 Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FUND
FD100 - General Fund $ 12,473,101 $ 13,094,522 $ 13,518,353 $ 11,427,290 $ 11,545,473 FD110 - Measure U Fund 3,176,928 2,793,260 3,216,641 2,161,705 2,196,058 FD450 - Quimby Park
Acquisition &
Development Fees Fund
347,859 164,138 675,000 675,000 675,000
FD210 - Growth Mitigation
Fund
2,324,707 3,021,026 - - -
FD470 - Residential
Development Tax Fund
156,078 448,678 175,000 90,000 90,000
FD431 - Northwest
Landscape District Fund
2,212,756 2,766,010 3,869,403 4,133,911 4,169,993
FD432 - Northeast
Landscape District Fund
982,993 1,082,602 824,798 903,681 903,681
FD433 - Southwest
Landscape District Fund
2,591,927 2,724,344 2,022,891 2,104,487 2,104,487
FD436 - Stowell Parking &
Lighting Fund
25,568 26,449 31,618 31,744 31,744
FD438 - Southeast
Landscape District Fund
1,668,846 1,538,377 1,519,426 1,601,668 1,601,668
FD310 - Capital ProjectsGeneral Fund3,027,949 622,279 5,858,000 - - Total Budget $ 28,988,711 $ 28,281,686 $ 31,711,130 $ 23,129,486 $ 23,318,104 Budget Summary by Program - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

PROGRAM
Leisure & Cultural Services
CC0810 – Administration $ 727,912 $ 944,908 $ 1,145,110 $ 1,003,175 $ 1,004,109 CC0815 – Park Services
Officers
1,835,394 1,767,836 2,258,163 1,883,057 1,901,620
CC0821 – Recreation 5,973,119 5,397,834 5,647,772 4,099,156 4,171,450 CC0822 – Facilities 2,172,473 2,530,111 2,536,237 1,565,874 1,577,110 CC0840 – Operations 5,682,207 5,299,261 5,524,512 5,037,733 5,087,242 CC0845 – Special Projects 4,611,579 3,591,137 5,481,200 - - City of Santa Maria 2026-28 Biennial Budget
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Budget Summary by Program - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
Total Leisure & Cultural
Services
$ 21,002,684 $ 19,531,087 $ 22,592,994 $ 13,588,995 $ 13,741,531 Special Revenues
CC0845 – Park Acquisition
Projects
$ 347,859 $ 164,138 $ 675,000 $ 675,000 $ 675,000
CC0845 - Park
Development Projects
156,078 448,678 175,000 90,000 90,000
CC0850 – Northwest
Landscape District
2,212,756 2,766,010 3,869,403 4,133,911 4,169,993
CC0850 – Northeast
Landscape District
982,993 1,082,602 824,798 903,681 903,681
CC0850 – Southwest
Landscape District
2,591,927 2,724,344 2,022,891 2,104,487 2,104,487
CC0850 – Stowell Parking
& Lighting District
25,568 26,449 31,618 31,744 31,744
Total Special Revenue
Funds
$ 7,986,027 $ 8,750,599 $ 9,118,136 $ 9,540,491 $ 9,576,573 Total Budget $ 28,988,711 $ 28,281,686 $ 31,711,130 $ 23,129,486 $ 23,318,104

DIVISION/PROGRAM BUDGETS

ADMINISTRATION
The Administration Division provides strategic, financial, and operational support to the Recreation and Parks Department and serves as a key liaison to the City Council, Recreation and Parks Commission, and City Manager on recreation and park-related matters. The Division delivers essential services to both the public and internal staff, including customer service at the public counter and via telephone, clerical support, and personnel services for full-time and part-time employees.

The Division works collaboratively with the Community Development, Public Works, and Utilities Departments on advanced planning efforts, including subdivision review for residential and commercial development, as well as coordination of activity and event permits. Administration is also responsible for comprehensive financial management, including oversight of the Department’s General Fund accounts, 25 Special Districts and Special Benefit Zones, purchasing, and annual budget development and monitoring. These functions ensure effective service delivery across all operating divisions.

The Division plays a major part in the Department’s day-to-day operations of Workday where purchases are made, invoices are processed, timekeeping and personnel transactions are performed, and spend authorizations are submitted. Due to the complexity of the system and the size of the Department in both budget and employees, this is a five-person operation being performed by two employees.

The Recreation and Parks Department’s Business Manager serves as the primary liaison with the Human Resources Division and oversees key administrative functions, including recruitment coordination, employee relations, workplace injuries and leave management, and staff development and training.

The Business Manager is also responsible for department-wide budget oversight, purchasing and contract administration, and ensuring compliance with City financial policies and best practices.

Additionally, the Administration Division oversees key operational support functions, including facility maintenance coordination, event logistics support, graffiti abatement, shopping cart retrieval, maintenance of departmental vehicles and equipment, recreation registration services, and the issuance of park and event permits. These services are critical to maintaining safe, clean, and accessible facilities and supporting community programs and events.

RECREATION
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The Recreation Division provides a wide range of programs, services, and events designed to enhance the quality of life for residents of all ages. The Division remains responsive to the evolving needs of the community by offering innovative, accessible, and inclusive programming. Through collaboration with community partners, advisory groups, and volunteers, the Division expands service delivery and maintains a high standard of quality across all program areas.

The Division is also responsible for marketing and outreach efforts to ensure the community is well informed about available programs, services, and events. Staff actively pursue grant opportunities, sponsorships, and donations to enhance programming and expand access, particularly for youth and families. In partnership with the Department’s non-profit partner, People for Leisure and Youth, Inc. (PLAY, Inc.), the Division successfully secures supplemental funding to support scholarships, equipment, and program delivery.

The key program areas of the Recreation Division follow with a brief description:

Senior Services
The Department, through its Active Aging Committee, collaborates with public, private, and non-profit partners to provide recreation and wellness opportunities for adults ages 50 and older. Programs and events promote active, healthy lifestyles and social engagement. Active Aging Week, held annually, features a wide variety of free activities, while ongoing programs include health and wellness classes, educational presentations, and social services support in partnership with local agencies.

Aktion Club of Santa Maria
Aktion Club is a community service organization for individuals with disabilities, offered in partnership with Kiwanis of Santa Maria–Noontime. Members meet regularly to plan and participate in service projects and fundraising efforts that benefit the community. The program promotes leadership development, civic engagement, and inclusion while supporting scholarships and community initiatives.

Community Events and Cultural Programming
The Division coordinates a variety of community-wide events that foster civic pride and celebrate Santa Maria’s cultural diversity. Annual events include the Tree Lighting Celebration, Día de los Muertos Festival, Concerts and Movies in the Park, and seasonal programming. The Department also supports numerous partner-led events and collaborates with local organizations to enhance community engagement. Public art and cultural initiatives further contribute to placemaking and strengthen community identity.

Youth Programs
Youth programs provide safe, engaging, and enriching opportunities for children and teens. The Rec on the Move after-school program operates at multiple park sites, offering structured activities, games, and supervised recreation throughout the school year, holidays, and summer.

The Abel Maldonado Community Youth Center offers programs and services for youth in grades 6 through 12, including educational support, access to technology, fitness opportunities, arts programming, and connections to community resources. Programs are designed to support positive youth development, skill-building, and social engagement.

Mayor’s Youth Task Force on Youth Safety
Along with the Mayor, the staff at Recreation and Parks have collaborated with Santa Maria High School and Pioneer Valley High School to form a Mayor’s Teen Advisory Council. These groups work on creating programs and services geared to help involve youth in diversion activities to prevent youth violence. Teens provide the Mayor and staff valuable input and solutions for additional youth and teen programming including Pop-Up Activities at parks, cultural and educational tours to museums and universities, free transportation passes for City of Santa Maria 2026-28 Biennial Budget
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local youth, establishment of a youth safety net resource called “Safe Places,” and two leadership academies sponsored by a national fast-food chain.

Youth and Adult Sports
The Division administers a comprehensive range of youth and adult sports programs, including basketball, softball, volleyball, tennis, soccer, pickleball, and more. Programs promote physical activity, teamwork, and community involvement. The Junior Giants Program, in partnership with the San Francisco Giants Community Fund, provides youth with baseball instruction and life skills development.

The Department also supports numerous community-based sports organizations and facilitates shared use agreements with local school districts to maximize access to athletic facilities. Tournament and league play attract regional participants, contributing to local economic activity.

Aquatics
The Aquatics program offers swim lessons, public swim, lap swim, water fitness classes, and special events at the Paul Nelson Aquatics Center. The program emphasizes water safety, skill development, and family recreation.

Through partnerships with local high school districts, the Department provides lifeguard services and pool maintenance, supporting efficient operations and staff development. Seasonal programming at local high schools expands access to aquatic services. In partnership with PLAY, Inc., free swim opportunities are also provided to increase community access.

PARKS
The Parks Division is responsible for the maintenance, enhancement, and operation of the City’s park system, landscaped areas, and recreational amenities. This includes 31 neighborhood and community parks, landscaped rights-of-way, medians, trails, and open space areas that contribute to the quality of life for residents and visitors.

The Division ensures that parks and facilities are safe, clean, and accessible through routine maintenance, inspections, and ongoing improvements. Core services include turf and landscape maintenance, irrigation management, tree care, playground and equipment inspections, graffiti abatement, and facility upkeep. Staff also respond to service requests and address maintenance needs resulting from weather, vandalism, and general wear and tear.

In addition to maintenance operations, the Parks Division delivers capital improvement and enhancement projects that expand recreational opportunities and improve park infrastructure.

Recent efforts have focused on increasing accessibility, upgrading amenities, enhancing lighting for safety, and developing new recreational features to meet evolving community needs.

The Division also oversees specialized programs, including urban forest management and mosquito abatement services, which support environmental sustainability and public health. Through proactive maintenance practices and long-term planning, the Parks Division works to preserve City assets and ensure the continued enjoyment of Santa Maria’s parks and open spaces.

Mosquito Control West Nile Virus
This service is operated within the Parks Division and is overseen by a staff member certified in mosquito control by the California Department of Public Health. The program focuses on identifying and treating mosquito breeding sources on both public and private property, as needed. In addition to abatement efforts, the program provides public education on the risks associated with West Nile Virus and promotes effective prevention practices to protect community health.

Los Flores Ranch Park
Los Flores Ranch Park is a unique 1,778-acre open space that provides residents and visitors with opportunities for outdoor recreation, environmental education, and passive enjoyment of natural resources. The park features more than 18 miles of multi-use trails supporting hiking, mountain biking, and equestrian use, offering a diverse outdoor experience within the Santa Maria Valley.

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The park serves as a key destination for nature-based programming and community engagement. A variety of free and low-cost educational programs are offered throughout the year, including guided nature walks, outdoor learning opportunities for school groups, family-oriented nature play days, moonlight hikes, and astronomy events. These programs promote environmental stewardship, healthy lifestyles, and increased access to outdoor recreation.

The City has established four Landscape Maintenance Districts to fund the ongoing maintenance and long-term replacement of landscaping and beautification improvements throughout the community.

These districts are authorized under the California Streets and Highways Code and the 1972 Landscape and Lighting Act.

LANDSCAPE MAINTENANCE DISTRICTS & PARKING/LIGHTING

DISTRICT
The City maintains four Landscape Maintenance Districts:

Northwest, Northeast, Southwest, and Southeast, to fund the ongoing maintenance and long-term replacement of landscaping and beautification improvements. Authorized under the California Streets and Highways Code and the 1972 Landscape and Lighting Act, these districts support parks, trails, parkways, medians, and other landscaped areas throughout the community. Each district functions as a Master Special District (MSD), supporting Special Benefit Zones (SBZs) that fund enhanced improvements within specific developments.

District funding is primarily generated through property assessments required as a condition of development, supplemented by General Fund contributions for broader public benefit. Assessments are established annually through the Engineer’s Report and are based on property characteristics and service levels. Funds support a range of services, including landscape and irrigation maintenance, tree care, graffiti abatement, inspections, and capital improvements. Reserves are maintained to address infrastructure replacement, unforeseen damage, and future renovation needs, ensuring long-term sustainability of landscaped assets.

Performance/Workload Measures

PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28

DEMAND/WORKLOAD
All Program Registrations Processed 61,716 101,918 76,438 Facility Bookings/Rentals Reservations Processed 3,940 3,659 4,024

EFFECTIVENESS/EFFICIENCIES

ADMINISTRATION
Department Program Registrations Processed 10,017 7,431 5,573

SPORTS PROGRAMS
Adult League Participants 2,428 2,167 1,907
Youth Sports 995 1,676 1,000

YOUTH AND TEEN ACTIVITIES
Registered Program Participants (does not include drop-in) 10,754 7,687 5,765 Registration Classes Offered 840 653 523

AQUATICS
Swim Lesson Registrations (does not include partner
agreements)
1,313 2,167 2,275
Total Registered Pool Uses 17,966 16,674 11,172

PARKS & URBAN FOREST
Acreage of Public Areas Maintained 233 262 282
Trees Planted 395 560 600
Trees Managed 9,862 10,422 11,022
Square Footage of Graffiti Removed 250,000 275,000 275,000 City of Santa Maria 2026-28 Biennial Budget
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Shopping Carts Retrieved 7,000 7,000 7,000
Parking Area Maintenance/Hours 7,280 7,280 7,280
Landscape Maintenance District Acres 171 233 291
Maintenance/Hours 20,384 22,464 26,208
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LIBRARY DEPARTMENT

DEPARTMENT OVERVIEW

PURPOSE
The Santa Maria Public Library system provides Library services to approximately 159,500 people in northern Santa Barbara County at the Main Library, and separate branches located in Cuyama, Guadalupe, Los Alamos, and Orcutt. Santa Barbara County has contracted with the City of Santa Maria to provide Library services to nearby
County libraries continuously since 1961.

Bookmobile service began in October 2020,
expanding Library services to neighborhoods
throughout Santa Maria.

Throughout the service areas, libraries are
community anchors, providing vital
information, computer, and internet access to
meet community members’ personal,
educational, recreational, cultural, and professional needs, especially during tough economic times.

Every day, libraries provide free resources for employment seekers, entrepreneurs, new residents, diverse minority groups, English language learners, students, parents, teens, children, and older adults.

Whether a visitor needs important medical or legal information, a study room, or is looking for movies, music, a good book, a book discussion group, children’s and toddler story time, artistic displays, or an entertaining performer, the library system has something for everyone. Library Saturday Makerspace offers a place for people of all ages to collaborate and create things and free after-school homework help is available during the week to elementary school students.

Electronic resources continue to increase in popularity as seen in the increased number of electronic materials circulated. The Main Library is open seven days a week and the Library’s website is available 24/7 as a virtual Library branch providing access to free downloadable electronic books, audiobooks, magazines, movies, and specialty databases that benefit students, businesses, and non-profit organizations. Patrons throughout the service area have online access to recommended homework resources, informational databases, mobile hotspots, laptops, Chromebooks, and a Library of Things with musical instruments, telescopes, sewing machines, cameras, and more are available for home use.

SUBPROGRAMS AND THEIR OBJECTIVES
The Library meets the general informational needs of the community by acquiring and making available a current and useful collection of print and electronic resources, computers, equipment, and special collections, in a space conducive to browsing, reading, programming, and collaborative work.

The Library also provides high-quality customer service, available in a bilingual format, with a welltrained, welcoming staff to assist the public’s access to Library resources and recommend relevant titles and materials that meet the public’s diverse needs.

Each subprogram provides focused objectives with the overarching goal of benefiting the community.

Administration: Promote the community’s enjoyment of art and culture via rotating local artist exhibits in Shepard Hall, local photographer exhibits on the second floor, children’s art in the Youth Services area, and local non-profit community group displays in display cases throughout the Main Library.

Provide three high-quality meeting rooms for use by outside agencies, including the large gathering room Shepard Hall, the Dorothea Nelson conference room, the Learning Center, and study rooms on the second floor for small groups and individuals.

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Support Library operations by compiling and analyzing statistical and financial reports, tracking budgets and grants to ensure compliance with City policy.

Adult Services: Provide access to Library materials and information for people outside the Library through telephone and digital reference services, an online catalog, electronic databases and materials for virtual library users and by making materials available to patrons through interlibrary loans.

Offer research information and assistance when needed, reserve temporarily unavailable materials for patrons, and borrow requested materials from other libraries.

Meet the special interest needs of the community and enhance the quality of life by acquiring substantial materials in the areas of world languages, language learning, automobile repair, genealogy, technology, employment, and specialized learning and resource kits.

Circulation and Technical Services: Manage the loan of diverse library collections to ensure a proper balance of item lending and retrieval to preserve a high retention rate and maintain positive relations with borrowers.

Facilitate retrieval and full use of desired materials by maintaining a single integrated and easily accessible catalog, providing an easy-to-follow layout of collections, ensuring shelves are restocked quickly, accurately, and neatly.

Outreach: Provide service to all four districts of the city focusing on areas that have transportation or other barriers preventing residents from visiting the Main Library.

Reach community members that are not current library users by bringing library resources to areas and events where the community gathers.

Offer mobile educational programming to support literacy and lifelong learning.

Youth Services: Motivate children, young adults, and adults to read for enjoyment and information, and to effectively use print and electronic resources by conducting in-house and school outreach activities designed to develop and enhance reading and research skills.

Offer information and assistance for youth and families, reserve temporarily unavailable materials for patrons, and borrow requested materials from other libraries.

Provide programming for youth and families that follows a scope and sequence model designed to support literacy and learning from infancy through teen years.

GOALS AND OBJECTIVES
GOAL DEPARTMENTAL GOALS FOR 2026-27

ADMINISTRATION
Fiscal Management Pivot from outdated and costly processes and identify new revenue opportunities for long-term financial success.

Optimize Service Delivery Establish public/private partnerships with city departments and community organizations to expand access to library resources for populations experiencing barriers to service.

Revamp training pathways for staff by instituting curated industry-related opportunities through free, low-cost, or sponsored avenues.

SAFETY
Public Safety Design programs in partnership with public safety to educate the community on disaster preparedness.

QUALITY OF LIFE
Recreation and Parks Provide nutritional, educational, and skill building opportunities for youth through Lunch at the Library and other programs. Youth will take part in activities such as learning job seeking and budgeting, while volunteering to serve free lunch and distribute free books.

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GOAL DEPARTMENTAL GOALS FOR 2026-27

ECONOMIC DEVELOPMENT
Economic Development Assess the operation of the café relaunch and develop a plan for expansion.

ACCOMPLISHMENTS
Some notable accomplishments for the Library include:
• Partnered with school districts and community organizations to gather data on school readiness gaps to complete an updated library early learning needs assessment, to be used to inform potential updates to early learning programming opportunities. • Awarded a grant from the California State Library in support of Career Online High School. The Career Online High School Program enables California adults to earn a high school diploma, free of charge, through their local public library.
• The Santa Maria Public Library to Go Bookmobile has served over 25,500 patrons since its inaugural drive in October 2020.
• Confirmed Library operating values and created a communications strategy to effectively demonstrate the nature and purpose of library services and boost engagement with the library, to align with the Citywide Communication Plan.
• Improve access to library resources for homebound residents by establishing clear policies and procedures to initiate a homebound program and examine feasibility for materials delivery. • Improve community literacy in partnership with the non-profit Central Coast Literacy Council’s Literacy Center, headquartered in the Main Library. Adults and children learn to read English with guidance from trained tutors, and in classes taught by trained literacy instructors. The Library provides free office space and access to study rooms for Literacy Council use. • Through the California State Library’s Lunch at the Library grant, partnered with nine school lunch sites to provide library services and distribute 797 free books for youth to start their home libraries.
• Shepard Hall’s audiovisual equipment was updated and PEG funded an integration with the City’s Council Chambers. Shepard Hall serves as an overflow meeting space when the City Council Chambers are at capacity. With the integration between the two spaces, individuals can view and participate in a meeting and not have to stand for long periods of time in the City Hall lobby. Shepard Hall is a community space, used by other departments and local partners in programs. The upgrade will save staff time spent troubleshooting and provide better customer service to City departments, community organizations, and individuals who rent the space.
• The Library completed the final stages of the planned floor space redesign to enhance the library experience for patrons, increase safety, and align with current library user needs. The project consisted of removing and relocating shelving on the first floor, removal of excess magazine shelving, shifting of various shelves in the nonfiction section of the second floor, and reconfiguration of the fiction, genealogy, and nonfiction sections.

NOTEWORTHY BUDGET HIGHLIGHTS
• County funding for branches in 2025-26 increased to $9.42 per capita. However, this funding level continues to be insufficient for operational costs. Branches are unable to support adequate collections or higher levels of staffing, such as professionally trained Librarians. In Orcutt, Cuyama, Guadalupe, and Los Alamos, the per-capita funds and non-profit Library support group donations go directly towards branch operations. While these generosities from support groups are appreciated, they are not sustainable. • The Black Gold Cooperative Library System membership fees for 2025-26 were $332,498 and are expected to increase by three percent in year one and an additional six percent in year two. Black Gold Cooperative Library System membership provides the Library’s shared catalog, server maintenance and system support for the catalog and public computers at the Main City of Santa Maria 2026-28 Biennial Budget
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Library and branches, and sharing of digital resources, databases, and physical materials.

PERFORMANCE/WORKLOAD MEASURES

PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28

DEMAND/WORKLOAD
Average Annual Library Patron Visits 472,478 457,064 479,917 Average Annual Library Cardholders 69,638 75,735 79,522 Materials Checked Out: 806,986 814,416 855,137
Main Library 506,107 501,946 527,043
County Branches 98,720 100,492 105,517
e-Materials Checked Out 202,159 211,978 222,577

EFFECTIVENESS/EFFICIENCIES
Special Programs and Exhibits 1,814 1,799 1,889
Program Attendance 31,835 30,909 32,454
Computer Sessions 65,310 70,279 73,791

DEPARTMENT ORGANIZATION
A complete schedule of the department’s positions, a summary of changes, and a detailed explanation of position changes can be viewed at Personnel - Library on page 171.

Director of
Library
Administration Main Library
Adult Services Youth Services Circulation
Services
Outreach
Bookmobile
Library
Website/Virtual
Library
Branch Libraries
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BUDGET OVERVIEW
Budget Summary by Expenditure Category - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

EXPENDITURE CATEGORY
Salaries & Benefits $ 3,001,012 $ 3,449,651 $ 3,931,155 $ 3,311,847 $ 3,391,251 Services & Supplies 1,653,715 1,527,038 1,323,153 1,439,590 1,458,023 Capital & Outside
Agencies
68,423 46,924 20,000 - -
Transfers 725,313 948,995 948,995 1,484,863 1,484,863
Total Budget $ 5,448,464 $ 5,972,608 $ 6,223,303 $ 6,236,300 $ 6,334,137 Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FUND
FD490 - Library Fund $ 4,251,672 $ 4,989,819 $ 5,208,149 $ 5,583,111 $ 5,661,026 FD110 - Measure U Fund 1,196,792 982,789 1,015,154 653,189 673,111 Total Budget $ 5,448,464 $ 5,972,608 $ 6,223,303 $ 6,236,300 $ 6,334,137 Budget Summary by Program - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

PROGRAM
Leisure & Cultural Services
L0045 - Santa Maria Main
Library $ 4,901,223 $ 5,372,603 $ 5,619,406 $ 5,625,111 $ 5,719,294 L0019 - Cuyama Branch 27,060 30,897 34,026 32,659 32,659 L0036 - Guadalupe
Branch 98,293 109,697 112,409 91,978 91,978
L0047 - Los Alamos Branch 61,005 73,661 95,524 95,210 95,172 L0066 - Orcutt Branch 360,882 385,750 361,938 391,342 395,034 Total Leisure & Cultural
Services $ 5,448,464 $ 5,972,608 $ 6,223,303 $ 6,236,300 $ 6,334,137 Total Budget $ 5,448,464 $ 5,972,608 $ 6,223,303 $ 6,236,300 $ 6,334,137 City of Santa Maria 2026-28 Biennial Budget
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COMMUNITY DEVELOPMENT DEPARTMENT

DEPARTMENT OVERVIEW

MISSION STATEMENT
The Community Development Department is committed to the highest level of public service through neighborhood enrichment, economic growth, innovation, and safety in our built environment that collectively improves the quality of place for our community.

PURPOSE
The Community Development Department reviews all residential, commercial, and industrial development projects in the City. The Department also coordinates the planned development of the City with other City departments and agencies. The Planning Division promotes the orderly development of the City and strives to ensure a high-quality community-first environment consistent with applicable State laws and the goals, policies, objectives, and programs of the General Plan and Santa Maria Municipal Code. The Building Division is responsible for monitoring construction activity, and to determine that any ongoing construction project has the required permits and conforms to the approved plans, and any conditions of approval. The Code Enforcement Division ensures compliance with the Santa Maria Municipal Code, while the Community Programs Division oversees Community Development Block Grant (CDBG) and related initiatives.

GOALS AND OBJECTIVES
GOAL DEPARTMENTAL GOALS FOR 2026-27

ADMINISTRATION
Fiscal Management Continuously monitor workloads against in-house staff capacity to ensure efficient service delivery while
minimizing the cost of contract services.

Optimize Service Delivery Collaborate with Finance staff to complete the streamlining of the business license process reducing costs, turnaround times and administrative burden. Train new
Building Inspection staff and ensure ICC certification
standards are met to optimize inspection timelines and
quality.

SAFETY
Code Compliance • Complete implementation of an artificial intelligence tool to enhance Code Compliance inspection,
reporting, and enforcement capabilities.
• Continue to coordinate efforts with the Santa Barbara County Public Health Department on a regular basis to
address unpermitted food operations.
• Continue to conduct quarterly neighborhood
improvement projects and collaborate with the Police
Department on neighborhood walk-and-talks as
needed to address community concerns and enhance
neighborhood safety and appearance.
• Complete the process of updating the existing
Catering Vehicle Ordinance based on community
feedback.

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GOAL DEPARTMENTAL GOALS FOR 2026-27

THE BUILT ENVIRONMENT
Well-maintained infrastructure –
including facilities, streets, parks,
and utilities
• Leverage smart growth principles to ensure resilient, sustainable infrastructure supporting future growth
areas, including the proposed annexation.
• Support these efforts by encouraging amenities such as open space, tot lots, and recreation space in new
developments.

QUALITY OF LIFE
Housing Work to attract additional high-quality developers to develop projects in Santa Maria. Strongly encourage
development of new housing ownership opportunities,
including diverse housing typologies such as townhomes
and condominiums to provide more affordable avenues to
ownership. Evaluate and, where appropriate, pursue grant opportunities to obtain the necessary funding to establish a Down Payment Assistance Program for qualifying firsttime homebuyers.

Homelessness Provide and administer Community Development Block Grant (CDBG) funding to support Good Samaritan’s
Homeless Shelter Programs and Freedom Warming Center,
as well as Fighting Back Santa Maria Valley’s Homeless
Children and Youth Services, as approved by the City
Council.

ECONOMIC DEVELOPMENT
Economic Development • Establish a Strike Force of key staff across essential departments in the development review process to
proactively partner with the private sector in moving
job-creating and revenue-generating projects forward.
• Pre-zone and apply for annexation of the proposed
985-acre area specified in the General Plan Update
adopted in May 2026. Utilize smart growth principles to create industrial and retail sites within the annexation area to attract new businesses and living-wage jobs for our residents.
• Fully launch the recently piloted PROPEL Program
(Priority Review of Projects Enhancing the Local
Economy), providing support and expediting projects
that create new jobs and enhance local revenues.
• Prepare a business incentive program to support
downtown revitalization efforts and attract businesses
to Downtown Santa Maria for City Council
consideration.
• Collaborate with downtown developers to facilitate
the advancement and completion of the various
projects proposed and underway within the Downtown
Specific Plan area.
• Establish a web presence within the City’s existing
website to highlight economic development in Santa
Maria, including business resources, financing programs such as the recently adopted SCIP, BOLD, and PACE,
and economic development programs such as the
PROPEL Program.

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ACCOMPLISHMENTS
• Completed and implemented Objective Design Standards, enhancing local control over the architecture and design of affected residential projects. • Continued the comprehensive update to the City’s General Plan for target year 2045. • Advanced downtown revitalization efforts by breaking ground on the Heritage Walk Lofts, a 102-unit adaptive reuse of a vacant former retail building; breaking ground on the adaptive reuse of the former Sears building for conversion to an El Super supermarket with additional retail spaces; and issuing a Downtown Permit for the Perlman Apartments, a 150-unit affordable housing complex.
• Processed 186 Planning project applications.
• Closed 1,465 Code Enforcement cases.
• Issued 2,714 building permits, including 930 new residential units. • Performed 16,026 building inspections.
• Issued 48 Tenant-Based Rental Assistance grants to local families, as well as 12 public service grants to local organizations, assisting an estimated 9,324 Santa Maria residents. • Awarded the John A. Sasso Award from the National Community Development Association in recognition of Community Programs outreach efforts.

NOTEWORTHY BUDGET HIGHLIGHTS
• The City anticipates completion of the comprehensive General Plan update in FY 2025-26, concluding a multi-year effort of community outreach, research and analysis, stakeholder engagement, and environmental review.
• The City is working with the Santa Barbara County Local Agency Formation Commission (LAFCO) and other Santa Barbara County jurisdictions on a Memorandum of Agreement (MOA) for Sphere of Influence boundaries and the identification of areas for future growth and/or for preservation.
• The City will continue working with developers on potential development in Downtown, including City-owned parcels, located near the historic intersection of Main and Broadway.

Proposed plans will introduce new housing and commercial uses, as well as plazas and gathering spaces, and make use of underutilized parking lot areas. Construction on the Heritage Walk Lofts and adaptive reuse of the former Sears building is underway at the time of this writing, with construction on the Perlman Apartments and Alvin Newton Apartments slated to begin in FY 2026-28.
• Housing development remains strong, with approximately 5,600 housing units currently in the development review and/or construction process. Notable projects include Las Brisas, a 443- unit apartment complex which will be completed in 2026, and Bellecrest Senior Residences, a 142-unit single-family senior housing development slated to break ground in 2026. • FY 2025-26 marked the highest permit volume in the City’s history, breaking the prior record set in the previous year. Construction of Accessory Dwelling Units (ADUs) continues to form a substantial amount of the overall permit volume.
• In accordance with the City Council’s priorities, CDBG capital funding will continue to be directed to City-owned facilities and improvements, with funding for the new Sports Complex prioritized in FY 2026-27.
• The City expects to see a consistent increase in the amount of funding it receives from the County’s HOME Consortium. HOME funding is meant to assist with affordable housing projects and services. For 2024-2025, the City expects approximately $300,000 in funding. Since 2010, the City has used a portion of its HOME allocation to fund the Tenant-Based Rental Assistance (TBRA) program. The program is a one-time subsidy that covers 100 percent (or up to $2,500) of a household’s rental deposit if the household income qualifies and the rental is within the City limits (exceptions apply).

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DEPARTMENT ORGANIZATION
The Community Programs Division was transferred to the Department in 2016 and Code Enforcement was transferred to the Department in 2022.

A complete schedule of the department’s positions, a summary of changes, and a detailed explanation of position changes can be viewed at Personnel - Community Development Department on page 168.

BUDGET OVERVIEW
Budget Summary by Expenditure Category - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

EXPENDITURE CATEGORY
Salaries & Benefits $ 4,509,645 $ 4,943,183 $ 6,067,399 $ 5,690,533 $ 5,765,731 Services & Supplies 2,922,695 2,991,696 2,594,384 2,810,806 2,864,629 Capital & Outside
Agencies
12,739 - - - -
Transfers 1,131,303 639,514 713,324 269,612 269,612
Total Budget $ 8,576,382 $ 8,574,393 $ 9,375,107 $ 8,770,951 $ 8,899,972 Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FUND
FD100 - General Fund $ 5,946,096 $ 6,060,344 $ 6,880,630 $ 7,506,049 $ 7,609,107 FD110- Measure U Fund 877,091 821,120 953,525 995,912 1,021,875 Director of
Community
Development
Planning
Development and
Environmental
Review
Advance Planning
and General Plan
Building and Safety
Building Plan
Review
Building Permit
Issuance
Building Inspections
Community
Programs
Community
Development Block
Grant
Affordable Housing
Public Services
Code Enforcement
Municipal Code
Violations
Neighborhood
Blight
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Budget Summary by Fund
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD320 – CDBG Fund 1,753,196 1,692,929 1,540,952 268,990 268,990 Total Budget $ 8,576,382 $ 8,574,393 $ 9,375,107 $ 8,770,951 $ 8,899,972 Budget Summary by Program - All Funds
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28

PROGRAM
Community & Economic
Development
CC0620 – Planning $ 1,987,651 $ 2,299,928 $ 2,216,178 $ 2,005,932 $ 2,031,287 CC0630 – Building 2,501,321 2,350,777 2,863,732 3,539,410 3,557,197 CC0640 – Community
Programs
2,266,501 2,905,812 3,125,502 1,881,495 1,941,031
CC0641 – Code
Enforcement
1,820,909 1,017,876 1,169,695 1,344,114 1,370,457
Total Community &
Economic Development
$ 8,576,382 $ 8,574,393 $ 9,375,107 $ 8,770,951 $ 8,899,972 Total Budget $ 8,576,382 $ 8,574,393 $ 9,375,107 $ 8,770,951 $ 8,899,972

DIVISION/PROGRAM BUDGETS

PLANNING
The Planning Division writes and updates the City’s General Plan and updates 15 Specific Plans to reflect the current needs of the community and local residents, including the Downtown Specific Plan (DTSP). The Department reviews all projects for zoning compliance, processes land division applications, annexations, Sphere of Influence amendments, and all environmental assessments and reports. This program is intended to promote the orderly development of the City and to maintain a high-quality, business-friendly, community environment consistent with applicable State laws and the goals, policies, objectives, and programs of the General Plan, Specific Plans, and Santa Maria Municipal Code (Municipal Code).

Subprograms and their Objectives
Discretionary Project Review (As required by local, County, and State law) This subprogram provides the information, review, and processing necessary to ensure projects comply with City, County, and State development regulations. The Planning Division works closely with property owners, developers, design staff, and the interested public during the review phase of a project.

During the review process, the division requests input from City departments and various County and State agencies. After receiving this input, the Division works with the applicant to resolve any remaining issues. The Division schedules the project on the Planning Commission agenda, notices the public, and generates a staff report to be considered by the Planning Commission.

The objective of this subprogram is to provide a timely, efficient, and thorough review process, which ensures projects coming before the Planning Commission and City Council are of high quality, and consistent with the City's development regulations, while not generating adverse impacts.

Subdivision Review (As required by State law)
Many of the residential, commercial, and industrial projects reviewed and approved by the City involve the subdivision of land, creating individual lots, which can, at a later date, be sold and developed.

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The subdivision review process involves coordination with City departments, public utilities, and numerous Santa Barbara County (County) and California State (State) agencies. The Planning Division provides coordination, holds Subdivision Committee meetings, generates meeting minutes, provides the required legal noticing, writes staff reports, and schedules proposed subdivisions before the Planning Commission and City Council.

The objectives of this subprogram are to process subdivision applications in a timely and organized manner and to ensure that subdivisions coming before the Planning Commission and City Council are consistent with the goals and objectives of the General Plan, as required by the State Subdivision Map Act.

Environmental Review (As required by State law)
Under provisions of the California Environmental Quality Act (CEQA), most discretionary projects within the City are required to receive some level of environmental review. This review provides information regarding environmental impacts associated with projects and identifies mitigation measures, which may reduce or eliminate significant impacts. The objective of this subprogram is to provide an environmental review rapidly and cost-effectively, while complying with CEQA. Also, the City monitors all construction projects for compliance with mitigation measures according to State law.

The Community Development Department continues to process routine CEQA exemptions and utilizes previous environmental documents to significantly reduce the circulation of new environmental documents.

General Plan and Long-Range Planning
The objective of this subprogram is to maintain and update the City’s General Plan, so the goals, policies, and implementation measures are current and reflect the existing and future needs of the community as required by State law. Subdivision maps, Specific Plans, capital projects, and various land use permits must be consistent with an up-to-date, adopted General Plan.

State law mandates cities to maintain a current General Plan with the following mandated elements:

Land Use; Circulation; Noise; Housing; Safety; Open Space; and Conservation. The City’s General Plan complies with State law and has combined the mandated Open Space and Conservation elements into a Resource Management Element, which includes optional elements for the Recreation and Parks Department and public facilities and services.

Zoning Code Amendments
The Planning Division works on zoning code amendments to address emerging issues or to comply with changing statutes. Amendments to the Municipal Code/zoning ordinance included topics of housing, Objective Design Standards, Battery Energy Storage Systems, and Accessory Dwelling Unit standards.

The Planning Division works closely with the City Attorney’s Office to ensure that proposed amendments are consistent with local, State, and Federal regulations, as well as with the City’s General Plan.

Planning Commission Support
The Planning Division provides comprehensive staff support to the Planning Commission, which includes staff reports, legal noticing, recording of the Planning Commission minutes, and scheduling Planning Commission study sessions, public hearings, and joint workshops with the City Council.

The objective of this subprogram is to provide support and information to the Planning Commission so that the duties and responsibilities of the Planning Commission may be carried out in an informed and organized manner consistent with applicable regulations and laws.

Building Permit Application Plan Check
Through this subprogram, the Building Division and associated divisions and departments thorougly examine submitted building and grading plans for consistency with all applicable building codes and safety regulations. The Planning Division reviews building and grading plans to ensure that the plans City of Santa Maria 2026-28 Biennial Budget
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are consistent with the Municipal Code and conditions of approval placed by discretionary projects, as approved by the Planning Commission and the City Council.

This process is performed concurrently with the Building Division's plan check to minimize the total time required for the plan check. To expedite large projects and provide enhanced customer service, the Director provides the opportunity for developers to submit building plans for preliminary plan check during the planning process. While the developer submits at their own risk, it can save up to two months of review time in the linear development process.

The objective of this subprogram is to ensure that building and grading plans comply with the Planning Commission and City Council conditions of approval and the Municipal Code and State building codes. This process partially implements the State law relative to environmental mitigation measure monitoring.

Sign Review
This subprogram provides an information and plan checking function. Information regarding City sign regulations is provided to members of the business community, sign companies, and architects. Sign applications are reviewed by Planning Division staff to ensure that future signs will be consistent with adopted City sign standards. The objective of this subprogram is to encourage an attractive and safe business and industrial environment by ensuring that signs comply with the City's sign standards.

Public Information
This subprogram is intended to provide information to the public regarding the City's General Plan, Specific Plans, development standards, bi-annual development lists, and monthly Building Activity Reports. Information is communicated through meetings, telephone calls, e-mails, information posted on the City’s website, Planning Commission agendas and minutes, and handout materials.

The City is continuing to implement the Language Access Plan (LAP), which describes the City’s efforts to ensure meaningful access to City programs and activities by Santa Maria residents who are Limited English Proficiency (LEP). LEP persons are those who, as a result of national origin, do not speak English as their primary language and who have a limited ability to speak, read, write, or understand English.

The objective of this subprogram is to increase the effectiveness of pertinent information available to the public; thereby, improving the public's knowledge of the City's development policies and reducing staff and public time in obtaining and providing the information. This also will be of assistance to the City’s goals of economic development and continued revitalization efforts in the downtown.

Computer Support
The objective of this subprogram is to provide the public, staff, the Planning Commission, and City Council with quick and accurate information to make informed decisions that are responsive to the needs of the City.

The Department has improved the City-Wide Development Map by providing links from the projects shown on the map to the staff planner’s e-mail contact to easily obtain project information. Project and permit tracking is an ongoing administrative task that involves updating the status of development information, which is summarized in the preparation of current development activity lists. In addition to project and permit tracking, conversion of planning files into electronic format is a major objective for the Planning Division, including the imaging, storage, and retrieval of documents. Staff has been preparing project files to be ready for digital scanning. The scanned documents will then be tied to the permitting software and WebExtender for retrieval. Given the large volume of project files in storage, this will be a multi-year project.

The Department also collaborated with the IT Division’s GIS team to enhance GIS availability, placing the ability to look up zoning and parcel information at residents’ fingertips.

Bikeways
The objective of this subprogram is to facilitate the development of bikeways per the City’s adopted Master Bikeway Plan. The Planning Division coordinates the incorporation of bikeway facilities into the City of Santa Maria 2026-28 Biennial Budget
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design of private development plans. The City’s Bikeway Master Plan was adopted in November 2009 and is aligned with the Public Works Department’s 2020 Active Transportation Plan, each including programs to improve transportation options within the City, including bicycling. The Department continues to coordinate with Public Works staff to ensure that bikeway segments are constructed according to the Master Bikeway Plan when private development occurs along the proposed routes, as well as provide assistance as needed with the application of grant funding.

Landmark Evaluation Support
The purpose of the City’s Landmark Preservation Code is to promote the general and economic welfare of the City by preserving and protecting those places, sites, buildings, structures, works of art, and other objects having a special historical, cultural or aesthetic character or interest for the use, education, and view of the general public, and to remind all residents of the City and visitors of the historical background of the City. Currently, a Planning staff member attends Recreation and Parks Commission meetings and provides staff support to landmark property considerations.

Downtown Committee Support
The purpose of the Downtown Committee is to promote the Downtown Specific Plan and the vision, goals, and policies outlined in that plan. Larger development projects within the specific plan area go before this committee for review and recommendation to the Community Development Department as a part of the development review process. Currently, the Planning Manager facilitates the meetings for this group which are scheduled on an as-needed basis, dependent upon development activity within the specific area. The committee is comprised of one Planning Commissioner, one Recreation and Parks Commissioner, and two Councilmembers (as decided by the respective commissions/council). This responsibility was transferred to the Community Development Department as outlined in the adopted Downtown Specific Plan.

Performance/Workload Measures

PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28

PLANNING

DEMAND/WORKLOAD
Permits 73 39 45
Legislative Actions 7 8 8
Building Permits and Business Licenses 6,164 6,850 6,850 Housing Units Permitted 1,630 1,412 1,500
Planning (CC0620)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD100 – GENERAL FUND
Salaries & Benefits $ 1,318,185 $ 1,477,060 $ 1,915,116 $ 1,517,275 $ 1,542,630 Services & Supplies 658,145 822,868 301,062 488,657 488,657 Capital & Outside Agencies 11,321 - - - -
Total General Fund $ 1,987,651 $ 2,299,928 $ 2,216,178 $ 2,005,932 $ 2,031,287 Total Planning $ 1,987,651 $ 2,299,928 $ 2,216,178 $ 2,005,932 $ 2,031,287 City of Santa Maria 2026-28 Biennial Budget
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BUILDING
The Building Division reviews all building and
construction plans for compliance with applicable
building codes, issues permits, and inspects all
buildings during construction phases. The Building
Division is responsible for the administration and
enforcement of State and local codes, City
ordinances, and building code regulations for
construction, alteration, maintenance, and use of
privately owned structures, appurtenances, and land.

These regulations include building; housing;
dangerous building; mechanical; electrical;
plumbing; swimming pools; sign codes; demolition;
disabled access requirements; and State-mandated
energy regulations. The Building Division provides plan check services, issues building permits, performs inspections, and acts as a resource to the community by providing information and advice to the public, contractors, and designers on building matters. Currently, the program is comprised of the following subprograms:

Subprograms and their Objectives
Processing
The Building Division's front counter aims to be a one-stop shop where plans and other documents are received from the applicant. To improve customer service and efficiency, the building division accepts all building permit submittals through the Community Development software online portal. Permit technicians route all necessary plans and documents to the appropriate departments for their review most expeditiously and accurately as possible, while maintaining effective control of all project plans and documents during processing and plan review. When all reviews are completed, permit technicians compile the corrections from different departments into one single corrections list to provide to the applicant. This process is repeated until all corrections are made to the satisfaction of the various departments.

Plan Review
All plans are reviewed as quickly as possible, without compromising public safety, to ensure conformance with applicable regulations. Where corrections to the plans are required, the plans examiner provides a corrections list for the applicant. Plans examiners are available and willing to discuss technical code issues and assist designers, builders, and homeowners in achieving compliance with applicable regulations in the most cost-effective way possible. The Building Division strives to City of Santa Maria 2026-28 Biennial Budget
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provide a timetable of six to eight weeks for the first plan review. Currently, due to limited availability, Express Plan-Check is only available for projects when all departments that require review can meet the expedited timeline of 14 business days and where the applicant is willing to pay more for the direct costs of having plans evaluated more quickly.

Fee Collection
Permit Technicians ensure that all fees, are accurately determined, assessed, collected, identified by account, and forwarded to the Finance Department.

Permit Issuance
After the completion of the plan review process, permit technicians stamp and prepare the job set and office set of approved plans as well as the permit job card and department clearance card for issuance to the contractor. Approved plans, permits, and submittal documents are electronically scanned after project completion to provide easy access for staff and the public via WebExtender.

The Building Division can only issue permits to those persons legally authorized to obtain permits according to the State of California Business and Professions Code and State Contractor's License Law.

Inspection Services
The Building Division inspectors ensure that all buildings and structures within the City limits are constructed in conformance with approved plans and the minimum standards of applicable building code regulations. Whenever possible, inspectors are available and willing to provide information and assistance to homeowners, contractors, and design professionals, and through conscientious and fair application of building code regulations, provide for the safeguarding of life, health, property, and the public welfare. The Building Official oversees the adoption of new codes and regulations for each triannual code cycle, adopts and implements new building codes, and proposes City amendments, where appropriate.

Water Meters
Water meter applications and fees are received by this Division and the customer is asked to fill out a signature portion stating that the customer will be responsible for the utility bill. Once fees are collected, the information is forwarded to the Finance Department, and a copy of the application is forwarded to the Utilities and Public Works Departments to facilitate the scheduling of the water meter installation and inspection.

Business Licenses
Business license applications are received and reviewed for compliance with the Municipal Code. To verify compliance with health and safety regulations, a building inspection is scheduled for commercial locations. Fees for zoning, Certificate of Occupancy, and inspection are collected.

Historical Information
The objective of this subprogram is to provide computerized historical permit information to assist various City departments in several ways. Many new permit submittals require historical data to properly plan check the submittal. As an example, the City’s Code Enforcement Division staff will need to determine what has been permitted on a particular site when its staff suspects a violation such as an unpermitted building addition. Also, the public utilizes this information for a variety of reasons.

Realtors can use the information in preparing sales packets for properties where historical development information is available to potential buyers. Also, a homeowner can check to see if additions from prior owners were done legally. Staff continually updates and digitizes hard copy information to allow direct public access to City records. The public can view records independently, thereby making access more convenient while also requiring less staff time to research these records.

Digitizing this information also relieves the need for large storage areas and saves time in information retrieval.

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Performance/Workload Measures

PERFORMANCE MEASURE ACTUAL
2022-24

ESTIMATED
2024-26

PROJECTED
2026-28

BUILDING

DEMAND/WORKLOAD
Construction Valuation $200,442,997 $330,000,000 $275,000,000 Building Permits Issued 4,744 5,000 5,000
Construction Inspections 32,691 32,700 32,700
Business License Applications Received 601 500 500
Building (CC0630)
Actual
FY 2023-24
Actual
FY 2024-25
Adopted
FY 2025-26
Proposed
FY 2026-27
Proposed
FY 2027-28
FD100 – GENERAL FUND
Salaries & Benefits $ 2,024,506 $ 2,119,236 $ 2,563,693 $ 2,515,119 $ 2,532,906 Services & Supplies 476,815 231,541 300,039 1,024,291 1,024,291 Total General Fund $ 2,501,321 $ 2,350,777 $ 2,863,732 $ 3,539,410 $ 3,557,197 Total Building $ 2,501,321 $ 2,350,777 $ 2,863,732 $ 3,539,410 $ 3,557,197

CODE ENFORCEMENT
The Code Enforcement Division is charged with the enforcement of the Municipal Code, thereby ensuring a safe environment and enhanced quality of life for residents and businesses. This division responds to resident and business complaints through services request forms. Overall, Code Enforcement’s efforts are directed to address and mitigate neighborhood blight.

Code Enforcement Officers must obtain certification from the California Association of Code Enforcement Officers and Peace Officers Standards Training certification.

Subprograms and their Objectives
Substandard Housing
Code Enforcement is the City’s enforcement arm for substandard housing cases. These include dilapidated buildings; homes that lack water, gas, or electricity; mold or insect infestations; collapsing roofs; water damage; unpermitted construction and remodels; and many other violations that make a home unfit for human habitation. These cases take significant resources to process, both from Code Enforcement and the City Attorney’s Department, and are often drawn out by the Court system. “Pop-up” Food Sales and Sidewalk Vendors
Code Enforcement continues to partner with the Santa Maria Police Department and the Santa Barbara County Public Health Department to address enforcement against illegal “pop-up” food sales. These include unpermitted sidewalk food vendors, and/or illegal cottage food production and sales, often found at residential properties unpermitted for commercial food preparation.

Mobile Car Washes and Prohibited Discharge
Code Enforcement continues to respond to complaints and proactively addresses illegal mobile car wash operations. These operations usually result in stormwater runoff and pollution violations resulting from discharge of wastewater and other chemicals into public streets. Code Enforcement also responds to other illegal discharges, such as automobile fluids and other harmful solutions. “Walk and Talk” and Community Education
Code Enforcement conducts regular, bilingual “Walk and Talk” programs that provide an opportunity to educate residents on common or problematic Municipal Code violations in their neighborhood before returning later in the year to correct any unremedied issues via enforcement. Walk and Talks are hands-on, door-to-door community outreach that shows residents that Code Enforcement Officers are real, caring people that live in this community and want to see it made better for everyone.