Santa Barbara finance committee forwards third-quarter budget adjustments, salary reclassifications to council

The Santa Barbara City Finance Committee on May 20 reviewed the third-quarter financial position for fiscal year 2025, received staff projections for the general fund and eight enterprise funds, and voted unanimously to forward staff recommendations — including proposed budget adjustments and position reclassifications — to the full City Council.

Staff member Mister Demartini led the presentation, saying, "Today's presentation is to give an overview of the third quarter financial review for fiscal year 2025," and recommended that the committee receive the interim financial statements for the first nine months of the fiscal year and recommend that council adopt a resolution approving the third-quarter budget adjustments and a resolution approving listed salary and position changes.

The report showed the city projecting a deficit for the current fiscal year, and Demartini said the city remains structurally out of balance in later years: staff presented a multiyear forecast showing the gap between revenues and expenditures narrowing in fiscal 2026 but widening thereafter. Demartini noted that the presented figures include Measure C revenues and the city's required contribution to reserves under its reserve policy.