City Council approves budget amendments adding 9.2 positions amidst $26M revenue shortfall

The Santa Maria City Council meeting on June 3, 2025, focused on significant budgetary changes and staffing adjustments for the upcoming fiscal year. The council discussed a proposed increase of $7 million in appropriations, which reflects a growing need for resources across various departments.

City staff reported an increase in full-time equivalent positions from 732.4 to 741.6, marking a net addition of 9.2 positions. This adjustment includes six new roles in the Recreation and Parks Department, four in Utilities, and five positions transitioning from Public Works to the Transit Division. The council emphasized the importance of evaluating these changes for approval by the city manager.

A key topic was the Local Economic Augmentation Fund (LEAF), which serves as a reserve for surplus revenues. A new policy limits contributions to LEAF to 5% of the general fund's total appropriations. The current balance in LEAF is projected to decrease from $23.1 million to $22.7 million, with plans to utilize these funds to address budget shortfalls in the next fiscal year.

The council also reviewed 61 supplemental budget requests from various departments, recommending 46 for approval. Notable requests included funding for annual increases in services and a $25,000 allocation for homeless encampment cleanup. However, many position changes were put on hold pending further evaluation.

In terms of capital projects, the council discussed various maintenance and equipment upgrades, which will also require city manager approval before moving forward. The overall budget forecast indicates a significant operational shortfall of $26.4 million, prompting discussions on utilizing reserves to balance the budget.

The meeting underscored the city's ongoing financial challenges and the need for careful management of resources as it prepares for the upcoming fiscal year. The council's decisions will play a crucial role in shaping the city's financial landscape in the months ahead.