Measure U revenues fell short and expenditures exceeded expectations, city finance director reports

Rebecca Campbell, Santa Maria’s director of finance, presented the Measure U Citizens’ Oversight Committee annual report for fiscal year 2024–25 at the March 3 council meeting.

Campbell said the city closed the year with $25.9 million in Measure U revenue—about 96.5% of the expected amount—and $29.9 million in expenditures. She told council that higher-than-anticipated expenditures reflected rollovers of prior-year projects, multi-year capital expenses, vehicles and equipment purchases, and operational commitments that carried into the fiscal year. “Our expenditures are exceedingly over what we’re bringing in in revenue for Measure U,” Campbell said in the presentation.

Campbell reviewed the fund structure the council previously set (90% public safety, 5% youth services, 5% quality-of-life) and noted department-level impacts: Measure U supported positions and projects in police, fire, community development, library, and recreation and parks, and some positions were shifted between funds to maintain the intended allocation ratios. She said unassigned fund balance declined and that carryovers from prior years contributed to the spending profile.

Council members questioned whether lower sales-tax receipts represented a broader trend and asked how carryover projects and construction timing could affect budgets. Campbell replied that sales tax was largely flat statewide and that modest property-tax growth (roughly 2%) would be the more likely source of revenue growth; she said staff will bring rebalancing updates as budget discussions continue.

The council moved to receive and file the oversight committee’s annual report. The motion was seconded and carried by roll-call vote.