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Santa Maria council adopts mid‑cycle budget changes, directs staff to pursue longer‑term rebalancing
Summary
The Santa Maria City Council approved mid‑cycle amendments to the 2025–26 city budget on June 3, 2025, authorizing use of one‑time reserves and directing staff to produce a detailed multi‑month rebalancing plan and an ad hoc council working group to address a projected structural shortfall.
The Santa Maria City Council on June 3 approved mid‑cycle amendments to the city’s 2025–26 budget and directed staff to build a short‑ and long‑term plan to close a roughly $25.1 million gap between forecasted revenues and expenditures.
Council action and staff direction followed a detailed presentation from Rebecca Campbell, the city’s director of finance, who laid out revised year‑end estimates and a set of supplemental budget requests. Campbell said revenues were “pretty flat” and that general fund spending and Measure U expenditures together would exceed revenues for the coming year, requiring use of reserves and other one‑time funds to balance the books.
Campbell told the council the city would draw down reserves including the Local Economic Augmentation Fund (LEAF) and a planned pension payment to cover the shortfall while staff prepares a rebalancing plan. “We are energized and ready to embark on a…
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