UnGovr Transcript
iHow this transcript is madeUnGovr transcribes the official recording with automated speech-to-text, separates speakers by voice, and matches voices to the seated roster. Names and attributions are AI estimates and may contain errors.Verify any quote yourself: click anywhere in the transcript and the official video jumps to that exact moment, so you can check any quote against the recording.0:00 – 0:067 turns
Okay, good evening ladies and gentlemen. I'd like to call this meeting to order for the City Council meeting of June 2nd, 2026. Madam Clerk can you please call the roll?
Roll call — called by City Clerk · 1 under review
Show transcript
So we'll now move on to public comment and I have one request to speak Nicole Bryant
Ms. Nicole Bryant representing SEIU Local 620 and your general unit employees of the City of Santa Maria. The members standing behind me have taken time off work to be here ahead of your closed session to respectfully ask that the bargaining authority you grant your negotiating team reflects the city's stated organizational values, treating others with dignity respect and fairness.
Right now the direction being proposed does not meet that standard. SEIU members are being asked to absorb a 5% pay cut and up to 20% reduction in medical contributions while other bargaining units are receiving cost of living increases, 4% for fire, 5% for police this year plus additional equity and salary step adjustments while maintaining their employer paid medical benefits. That is not teamwork and shared responsibility. That is unequal treatment.
Their signs show what these proposals actually mean, not abstract percentages but real impacts. Thousands of dollars lost from household budgets and real financial instability for families who serve this community at a time when inflation has risen to 3.7% over last year the cost of gas now well over $5.50 per gallon they can't afford to take these cuts can you?
I will remind you that over 70% of SEIU members are City of Santa Maria residents. As I've said before, cuts to their wages don't just impact individuals. They pull money directly from this local economy and I also want to be clear about what's being presented in tonight's budget alongside these proposed cuts. The budget before you includes approximately 1,280,000 increased general fund and measure use supplemental spending requests By comparison, the proposed 5% wage reduction for SEIU represents an estimated $1,573,000 in savings across all funds not just general fund and Measure U.
Reminder that over half of SEIU employees are funded through enterprise funds. Those numbers matter because they show that these proposed reductions to SEIU are not being brought forward as a necessary solution to the structural deficit. Instead, they are being used to offset the pay for new spending requests included in this budget. That is a policy choice and it raises a fundamental question of priorities whether balancing a new expenditures should come at the direct expense of the frontline workforce that delivers your day-to-day city services.
As you consider the authority you give your bargaining team tonight, I urge you to set clear direction that compensation and benefits decisions align with your goal of being an employer of choice. And that you act in line with your organizational values. You state that you strive to treat all people with dignity, respect, and fairness. You believe that the employees of the city are your most valuable resource.
And each employee's contribution is the key to your success. Because the decisions you make tonight in closed session will define not just these negotiations, but the rebuilding of trust or lack thereof between this city and its workforce moving forward. Thank you.
The City Council will now recess to a closed session and we'll reconvene for the regular portion of the agenda at 530. Madam Clerk, can you please read the title of the closed session items?
3A Public Employee Performance Evaluation pursuant to California Government Code 54957B1. 3B Conference with Labor Negotiators pursuant to California Government Code 54957.6 and 3C Conference with Legal Counsel Existing Litigation pursuant to California Government Code 54956 Thank
you. We will now recess into closed session. I would like to note that the interpreter for this evening is Jose Gonzalez. Please raise your hand and ask him, he's right there in the back, for a listening device if you would like interpretation services. I'd like to call this meeting to order for the City Council meeting of June 2nd, 2026. Madam Clerk can you please call the roll?
Roll call — called by City Clerk
Show transcript
We have the pictures. Can we get those pictures back up on the screen or is it too late?
0:06 – 0:118 turns
If we can open up the door back there, we cannot close them on a public meeting if somebody can open one of the doors.
Thank
you.
Okay. Last Memorial Day, these are members of FFA from Santa Maria High School and from Pioneer High School. That's a picture of the kids before they were placing the flags and there they're putting the flags at the graveside. And I'm going to guess there was about 25 and there they're taking instructions on how to place the flags for any of our fallen members of the military.
And that was Memorial Day when they came to put the wreath during the Memorial Day cemetery at the memorial day ceremony at the cemetery. There's a group right there and I'd like to thank The FFA was from Santa Maria and Pioneer. And I'm not sure if there were some from Regetti there or not, but anyway they did a great job in the cemetery was covered in less than two hours with all the flags because you have to go and you have to read the names and read the rank they had and the service that they served in. And so I wanted to thank all these kids for doing that. So I requested that. And so we thank Mr. Guerra and Mr. Guerra and Mr Guerra So they're all at the high schools now.
Okay, let's see. City Attorney Mr. Watson would you like to give the closed session report?
Yes Madam Mayor with respect to items three A through C instructions were provided to the negotiators and no further response is necessary or report.
Thank you. We'll now present a proclamation proclaiming June 2026 as Pride Month in the City of Santa Maria and Council Member Soto will be presenting that proclamation.
Thank you, Madam Mayor. I am so honored to present this proclamation in honor of LGBTQ Plus Pride Month. Whereas the City of Santa Maria has a diverse lesbian, gay, bisexual, transgender, queer and more LGBTQ plus community and is committed to supporting visibility, dignity and equity for all people. And whereas many residents who contribute to the enrichment of Santa Maria are part of the LGBTQ plus community And whereas significant advancements have been made with respect to equitable treatments of LGBTQ plus persons throughout the nation and around the world. And it is important for cities like Santa Maria to stand up and show support for residents of the LGBTQ plus community.
And whereas June is recognized as LGBTQ plus pride month in many cities across the United States, And has become a symbolic month in which the LGBTQ plus community and its supporters come together in various celebrations of pride to commemorate the Stonewall riots when LGBTQ plus people rose up and fought against discriminatory criminal laws that have since been declared unconstitutional.
And whereas, in the movement towards equal rights for the LGBTQ plus community, the city celebrates their resilience Now therefore, Alice Patino, Mayor of the City of Santa Maria hereby recognizes the month of June 2026 as LGBTQ plus Pride Month in the city of Santa Maria and urges all residents and businesses to respect the entire community and build a culture that strives for equity and equality for all people.
And here to accept this proclamation is Suzette Lopez, the Executive Director of House of Pride and Equality also known as HOPE.
Thank you. Good evening, Madam Mayor and the rest of Santa Maria City Council. I'd like to thank you so much for sending a message of inclusivity to the city of Santa Maria. You guys are making a statement by doing this. I'm sure there's a kid out there by hearing this they are knowing that Santa Maria is focusing on having a more inclusive and progressive So thank you so much for being a part of this.
I'd like to also invite you to Santa Maria Pride this Saturday. I know I've reached out to a few of you, some have gotten back to me. I would love for y'all to join us. We are going to have representation from other cities and some other areas. So we would love to have Santa Maria City Council represent us there too. Thank you guys so much. Have a good one.
Agenda Discussionitems moved / continued / pulled — click to expand
The next item on the agenda is
0:11 – 0:1911 turns
public comment. Madam Clerk, do we have any public comment? Okay and these are for items that are not on the agenda so because we will be coming up to other items later. Nicole Bryant
Good evening mayor and council members. My name is Nicole Bryant representing SEIU Local 620 and the general unit employees of this city. You see more employees here now than there were earlier, many of them are in the hallway I believe. And that's because after finishing their shifts serving this community they came here to be present, to stand together and have their message heard.
And that message is simple, equitable cost of living adjustments, fair medical benefits and greater financial transparency. Right now the city is asking SEIU members to take a 5% pay cut and a 20% reduction to medical contributions while at the same time fire employees are scheduled to receive a 4% COLA in July. Police employees received a 5 % COLA earlier this year and are set for another equity adjustment and additional salary step adjustments. While both groups continue to receive their employer paid medical benefits. That is not equity, that is not shared sacrifice and it does not align with the city's own values behind me are the faces of that impact these are the employees who maintain your parks run your recreation programs maintain the pool process building permits maintain infrastructure and collect your trash daily They deliver and ensure that you have clean drinking water.
And that you don't get dysentery because people forget there's more to public safety than police and fire. Our members are not asking for special treatment, they're asking for fair treatment. And tonight, as you both consider both your preliminary budget and the tax measure, that fairness matters more than ever. Because if the city is asking the public to invest more into Santa Maria's future, then the city must also demonstrate that it is investing equitably in its own workforce. Applying solutions evenly across all groups and not balancing the budget on the backs of just one segment of employees.
We have supported responsible solutions in the past. We support common sense reserve policies and long-term sustainability. This hasn't changed, and we wish to partner with the City again in the very near future and work together to support the ballot measure. But fiscal responsibility and workforce equity must go hand in hand. A city cannot be an employer of choice while asking one group to fall behind.
And a community cannot stand strong when the people who serve it are treated unequally. So tonight we ask you, as you move forward with your budget in any ballot measure, commit to equity, commit to balance and commit to a shared responsibility because these employees standing behind me are not just your workforce. They're your residents, your constituents and your community. Thank you.
I'm
here for a traffic and safety concern over at Main Street in Concord. That's over by the Starbucks off the off-ramp, then you got the Chevrolet there Oftentimes that main street gets blocked at Concord during school or people getting off of work and people don't know to keep that intersection clear. You have the senior living right there where you Frequently have ambulances and fire trucks coming in and getting people.
And you have an intersection that's blocked, so I just ask that the city council keep that in mind. I don't know whose jurisdiction it is, if it's Caltrans or the city but I do ask that the city think about it, facilitate it. If it's Caltrans, it doesn't cost you anything, right? Piece of white tape down Maybe say keep clear. That's it, thank you.
Thank you. I just made eye contact with Mr. Fulgoni so he will,
he's
got your information and he will take care of it for you.
Okay appreciate it. Thank you.
Liam G followed by Chad Connelly. Good evening.
Good evening Mayor Patino and hello City Council members. My name is Liam Gallo, I work with the Northern Santa Barbara County United Way. We provide basic needs services like housing navigation and free income tax preparation. We also run some literacy programs for children. I have worked with them for six years. I currently serve as their co-CEO when Eddie retires in August, I'll take over as CEO The feeling that I want to communicate is one of good tidings for the City of Santa Maria because there was a critical change that occurred Monday, June 1. Ramon Gallo, my father started as the Recreation and Parks Department's Director. A round of applause for him!
I do come in part to embarrass him just a little bit by, you know, making a grandstanding and thing about it. But also, I know that many will leave before there is a formal acknowledgement and before he's brought up because he's at the end of the agenda. People typically leave so I wanted to front load that and also to provide to everybody Not just that sort of funniness, but he comes from the city of Lancaster with an extensive experience of developing capital projects for cities, creating meaningful programming for community and for empowering community leaders to create more good behind him. He's known for bringing people up, for getting people into positions from below, into management, into wherever they want to go.
His thing is that he inspires people and I feel that while I'm lucky that he gets to be here where I've been working for six years The City of Santa Maria is incredibly lucky to have someone like him in their ranks and if I'm here to serve a purpose or if I'm going to create action, city council members when we're designing budgets please trust what he and his team come up with as far as developments for your infrastructure and improvements to your community programs.
I think that you should trust me for now in the way that matters, but then you won't have to trust at all. He'll start to speak for himself and his work. He doesn't like to grandstand. He would never do something like this. I would have to do it for him. But you can trust in his work ethic and you can trust in his ability to inspire leadership below and above.
So that's what I have to say. Thank you.
Thank you. Thank you. Chad Connolly? Followed by Jimmy Milena.
0:19 – 0:278 turns
Hi, I'm here to talk for GLD Boxing Academy. Recently they moved from the Town Centre Mall to a location on Bed Arabia. This was about a month and a half ago. It was a big project all of us parents everybody got together we made the big move. We were informed about two weeks ago that we cannot operate anymore due Light industrial zoning area. So now our kids, they can't train.
Myself as a parent and one of my children have been training there for the last five-and-a-half years. I've watched them develop. I watch them learn respect, discipline, anger management And I've watched all the other kids grow as well, and it's inspired me to become a coach for these kids. Now we have no place for them because the city shut us down. You know, we promote to keep our kids off the street. We don't want them joining gangs. We don't want him doing drugs. We don't want him drinking. But the way this has all been put out, we can't even operate. They have to get Condition use permit, which is you know amount of money right? Which is if they don't have income.
How are they going to do that? City of Santa Maria should be promoting businesses like this to keep our kids off the street To learn for them to learn proper ways of life I Don't want my child on the streets. I'm on my child learning a discipline and And what's happening right now, it's very disappointing. There's a whole bunch of JLD parents out in the foyer right now supporting this. All our kids are here and I just don't see why we can't get a temporary at least to let us open the door so he can create revenue to pay these fees over time or whatever so that we can keep these kids training.
We got Junior Golden Gloves this weekend. We tried to do a fundraiser, it was shut down because anything to do with JLD we couldn't get a permit for. So you know, it's all costs out of our pocket. That's fine we're going to go to the Golden Gloves in LA and that's a three day event but also you know we got another young fighter really up-and-coming star he's going to Las Vegas to fight on the Mike Tyson card. You know I don't see how you can just shut things down that easy without really thinking about the kids.
The kids are the most important thing Anywhere. For me, for everybody and everybody's kids should be the first thing first not about money, not about shutting business down you want to promote business we need to promote business and keep these kids safe and off the streets that's all I have to say thank you
Mr. Connelly, I have your information and our city manager, Mr. Rollins will be contacting you. Thank you. Jimmy Molina. Alexandria Lopez.
Could it be that they don't hear us?
Patrick Coughlin. I'm going to call the last three names I have were a Jimmy Milena.
Oh, there he is. OK. Jimmy Milena.
Can you not hear me back there? Okay. Okay. Jimmy Mileta, okay. And then Alexandria Lopez after that.
Hello, my name is Jimmy Molano. I'm with the Santa Maria Indians Baseball Club here in Santa Maria. We represent the whole Santa Maria Valley here. Currently we have 234 boys playing fall ball baseball. We have 35 college kids playing summer baseball and we have them all over the city of Santa Maria and Orchid, the whole valley. They're from everywhere. The Santa Maria Indians are in the forefront for the Alps field Renovating Alex Field. We're in the process of trying to get a scoreboard, we're bumping corners everywhere. We can't get our scoreboard for the last year and a half. Alex was at us getting us a letter.
And we're in the midst of trying to get that with our engineers to get our scoreboard there. We're also bent with Gloria Soto, Brandt, Smitherman all whom powers to be to get Alksfield and Siemens Park opened again with ADA requirements. We don't have the money. We don't even have a plan. It's been three years And I know we're broke, we don't have the money. But we've been spending money in different areas. We need to get back to the kids and have the places that we have already and build that up. We don't need to be building new stuff if we can't even fix have lights at Manami Center. I can't rent Manami Center because it has no lights.
What? We have Atkinson Park, we have Seamus Park that's shut down. It's time that the city council, we get down and we skip parks and rec if we have to. And we need somebody to step up in this right here. Step up and get us some grant money. Oh there's no grants for used projects only for new stuff. We need you people to step up and help us out. We got fields all over the place that needs to be revamped. Miramonte needs to be revamped, we have a swimming pool that needs to be revamped. All our local stuff has to be fixed.
We need to start time to step up for the kids. And I know everybody said excuse, we have no money. I understand that, I have no money but we have to make do with what we got. We have a new director here. You need to know, you need to walk the city of Santa Maria. You need to walk around and out county wherever you have to go. And the kids have to come first and the elderly.
And we have all these senior citizen projects that are costing so much money. We're raising the prices on the senior citizens. I'm a senior citizen now! So we need to step up. It's time to open up Seamus Park, it's nine to get it ADA approved. If you guys can't do it then we need to find new council members and we need to find more new ADs. We got a new AD coming in, our director come in and I'm serious. It is over or next time I come in here with 1,000 people, 1,00 kids like we did Alice Patino would save the field. We came in with 1,0 people and I could do that too just like this.
The Santa Maria Valley needs you people to step up. Stop making excuses, it's time to help. Thank you. Jimmy Molina, Santa
Maria. Thank you, Molina. Alexandria Lopez? Can you hear me now? Yes. Okay, Alexandria Lopez?
0:27 – 0:3216 turns
Is that Alexandria Lopez?!
She's
right there. Okay, hello. I'll try to make this brief. I was born and raised here in Santa Maria. I'm a nurse. I work at our local hospital. I have over four decades of family swimming locally here at Paul Nelson Pool.
Are you going to speak on the Paul Nelson pool?
Yeah.
Okay, that's not right now. Oh,
that's
not right now. This is just public comment on anything that's not on the agenda.
Oh okay.
Thank you I will call you back. Patrick Coughlin. It's for the pool. Got it. Okay thank you very much. So now we'll go to the consent calendar. Does anyone have any items they wish to pull for discussion? None? No, this is on the consent calendar. Consent calendar only. None? I have
a written comment. I have a motion and a second to approve the consent calendar. Any discussion?
Madam Clerk, can you please call the roll?
Roll-call vote Passed 5–0 motion and a second to approve the consent calendar. Any discussion? Madam Clerk, can you please call the roll?
Show transcript
Okay next item is Item 12a Which is the public hearing on preliminary fiscal year budget development director. Rebecca Campbell would be, excuse me, I think I'm losing my voice again. Before I turn this over to Ms. Campbell, Budget discussion. It's important that I address the proposed pool closure and I see there are a lot of swimmers here tonight, so. So I have received your correspondence regarding the pool. I don't know how many we are up to at this point, but it is significant.
And please be assured that we're actively listening to the community's feedback. So rather than moving forward with an immediate closure, I'm requesting that the staff schedule a meeting to work closely with the leadership of the Santa Maria Swim Club and if Mr. Cashmore is here, I would suggest... If you can, Mr. Cashmore, if we could get a representation of maybe four or five people from the swim club with you as the point person and we have an ad hoc committee for the budget which is Ms. Soto and myself and we can get together with the city staff and figure out something that we can do before the 16th.
And so that means we would be meeting next week. Is that okay? So is that a motion? So our goal is to address the current budget concerns and collaboratively work to explore any kind of resolution that we can have, and to preserve that year-round access that is essential to so many of our kids and adults here in Santa Maria. So, Mr. Watson do I have to have been a form of emotion or we just just
pull it? I think by acclimation we received the message so it sounds like you guys will be meeting with okay because this is only a presentation of the budget this is not. This is just
a presentation and then we had that we had different points that we were in considering tonight And if you would like to speak, you can speak. But if not, we will have a committee put together and figure out how we're going to resolve this issue.
Ms. Soto? Thank you, Madam Mayor. I know that you mentioned that this was only a presentation but in the agenda it shows that there is a resolution to adopt the budget for fiscal years 2026 through 2028
0:32 – 1:1128 turns
Yeah, that's why I think we need a motion to amend it.
That's the pleasure of the board
is
then your because you don't know what are you amending to
exclude it from this year? Yes. So I would like to make a motion that we look at the budget but exclude the swimming pool discussion that we can have the ad hoc committee speak with the swimmers and the city staff to figure out a solution so With your presentation, we want to exclude that for a future meeting. So that would be my motion for today. Okay or you can second my motion
whatever you want to do. We'll have your motion and is there a second? I'll second. Okay so we have a motion and a second. Did you get that Madam Clerk? Yes. Further discussion? Hearing none, Madam Clerk can you please call the roll.
Roll-call vote Passed 5–0 motion and a second. Did you get that Madam Clerk? Yes. Further discussion? Hearing none, Madam Clerk can you please call the roll.
Show transcript
Okay that's it I believe you were going to say something when I posed the question. The
resolution was only included as an attachment and somehow it got put on as a recommendation, and we were attaching it to show you what we're going to bring on June 16th. Okay. So we're not adopting
the budget tonight?
Correct, it's just proposed
for
review.
It said under item two that you have the option of deferring it as
well. That makes a lot of sense Rebecca because this was the first time that I was hearing of this when I got a lot of emails and calls so it is the first time that you're presenting this to the entire council.
So tonight we're having the presentation of the budget and on the 16th we will be acting on Okay. But in the meantime, we will have committee meetings to get this resolved so that we don't have to do this every five or six years. What's it been Mr. Cashmore about five years ago?
COVID.
Thank you. Okay. So now we will have the presentation by Ms. Campbell, Director of Finance.
Okay, thank you Madam Mayor. Good evening members of Council. Rebecca Campbell, Director of Finance. Do you want to give people time if they're
gonna?
Yeah.
Thank you!
So you guys can head out unless you want to listen to a very boring financial presentation. Thank you all for coming. Really appreciate you guys being really involved and engaged.
This is where I live.
Shoot!
Okay, Ms. Campbell? Thank you.
Okay thank you members of council So here today and tonight to, tonight's budget night. And we're introducing the biennial fiscal year 26-28 two year budget. Okay? So I want to first introduce you to the budget team. So I have Mr. Rick Kirkwood in the crowd and Ms. Devine Mello city employees and very hardworking. And so they're here for support I also want to recognize all the departments and their fiscal staff. There's been an enormous amount of work that's been put into this process, and we're here today to give you the update.
Okay? So the recommendation tonight is not to adopt a resolution. It's to receive an update on the budget for the two years and to hear all the proposals, and we seek your input and direction. So this is a proposed budget. It's a budget plan. We provide a recommendation to you, and as council members, you will plan to adopt the budget, and we ask that you will do that at our next scheduled meeting.
Looking at as we prepared for tonight, it's been a long process. So last year at this time the budget was adopted resolving $25.1 million deficit using one-time reserves. The City got right to work and engaged in a very serious rebalancing effort to reduce the deficit These efforts included revisiting its financials, capital projects and fiscal policies. We unfunded and deleted a majority of the long-term persistent vacancies.
We reviewed and made recommendations for new revenue options. And this was a citywide effort of all staff, directors, staff and City Council budget ad hoc. We kicked off the budget process in January of 2026. In February of 2026, the City Council set its goals. Departments submitted their budgets in February and recommendations were developed. We're here today to present the proposed fiscal year 26 through 28 biennial budget.
Director, do you mind if we can turn on the monitors so we can follow along before you continue with your presentation? Thank you. Is it okay? Yes,
thank you. And then next meeting, June 16th the City Council will adopt a two-year fiscal year budget that includes both fiscal years 26-27 and 27-28. A lot of fine print here. So at the City Council Goal Setting Workshop that was held on February 28th of 2026, discussion ensued regarding roles and expectations, effective governance, recent accomplishments, community and global trends The goals on the slide reflect what is most important and pressing for our decision-makers yourselves as they consider community issues and concerns. Working from the top of the list, fiscal management while optimizing service delivery, public safety and code compliance, infrastructure recreation and park spaces, recreation and parks programs for youth and seniors, housing and homelessness, and economic development.
This shows the city's organizational structure. Understanding this organizational structure is important because it illustrates how policy direction from voters, City Council and advisory bodies is translated into operational activities and financial resources across all city departments. This table on the slide links the City Council's goals and objectives with the departments responsible for carrying them out.
You can find more information about that in the new budget book in the departmental sections. Okay, jumping into the operational proposed and city financials. So this represents all of the city's operating funds. So the City of Santa Maria categorizes operating revenues into six major categories, each with distinct revenue characteristics. Looking at the top section of the chart on the right Operating revenues and transfers are anticipated to be $284.4 million in 2026-27, and $279.1 million in fiscal year 2027-28. And we'll review more about the revenues as we go along in the presentation.
The top pie chart shows that enterprise funding makes up almost 48% of the revenue. Taxes is the second highest funding source for the city at 34.5%. And other revenue is made up of credit card processing fees, transfers in cost allocation charges and represents 7.6% of our sources. Back to the chart on the right looking at the bottom section shows our expenses.
So expenses are comprised of $303.6 million for fiscal year 26-27 and $340.5 million for fiscal year 27-28. as compared to $329 million in FY 25-26. The bottom pie chart shows that Utilities has 43.2% of the expenses and Public Safety is the next highest at 28.3%. The operating funds do not include, in these charts they do not include capital projects, internal service funds or mitigation funds.
If we include those funds, this brings the City's budget up to a total of $367.4 million in FY26-27 and $425.3 million in FY27-28. That includes all the capital maintenance, equipment and project budgets. This year services and supplies has topped personnel costs. This is because this chart includes all of it, and it includes utilities costs, and because personnel costs were reduced in the budget this current fiscal year 25-26 on January 20th, and throughout the budget. So last year personnel costs exceeded services and supplies by 5%, but now it's below.
Personnel costs include salaries, benefits, workers' compensation insurance and retirement costs including our pension unfunded liability. Citywide personnel costs total $134.5 million for fiscal year 26-27, $137.4 for fiscal year 27-28 with public safety departments making up nearly 50% of those costs for both fiscal years. In fiscal year 26-27 measure U funds of 24.6 million in city personnel costs, they include 10.7 million for the police department and 10.3 million for the fire department personnel costs.
In all the capital projects budget for the biennium consists of 52 capital projects representing approximately 158.3 million in appropriations Transfers include a transfer out to library from the general fund, 3.6 million and cost allocation plan transfers. And debt service includes the last payment of the computer-aided dispatch records management system payment and the payment for the water bonds of 3. 6 million which will, the last year will be fiscal year 3536.
Oh, that's odd. I don't know what happened here but I'll talk through it so I apologize. So we had a chart up here that showed our position allocations and so in fiscal year 25-26 we had 741.6 full time equivalent positions As part of the rebalancing initiative on January 20th, the current year's budget was amended and reduced personnel by 24 full-time equivalent positions decreasing regular and part time salaries and benefits by almost $7.6 million.
It is important to note that the elimination of these positions did not result in any layoffs The fiscal year 26-27 budget decreases our positions from 741.6 to 703.8. A decrease of, and the head count is 713 so that's a decrease of 39 positions from fiscal year 25-26 mid cycle adoptive budget. That includes a deletion of 38 positions in the general fund, reduction of two positions in the library fund, two positions in the enterprise funds.
The shift of four positions from the general fund to the assessment districts and the shift of four positions from the general fund to the general liability fund. Also note that there are no layoffs anticipated with these reductions. Okay, we'll take a little closer look at General Fund and Measure U now. So this chart is the general fund it does not include Measure U.
The general funds revenues and transfers are anticipated to be $107.6 million in fiscal year 26-27 and $101.4 million in fiscal year 27-28. The two-year budget for the general fund expenses are $107.6 million for fiscal year 26-27, $109 million for fiscal year 27- 28. The biennial budget shows that a significant structural imbalance still remains with ongoing expenditures exceeding ongoing revenues by $7.3 million in fiscal year 26-27 and $7,900,000 in fiscal year 27-28. Fiscal year 26-27 represents at a 7.3 million dollar transfer in from LEAF reserves to balance the budget The staff report I want to note the staff report outlined that we anticipated ending the leaf balance of 6.8 million however we met with our auditors on Friday afternoon going into the weekend and our auditor gave us an update And what it's showing is that our leaf balance is less than we anticipated.
During the audit process, we learned that the capital and general fund revenues were overstated that year due to an incorrect transfer involving leaf reserves. The transaction resulted in capital and general fund reserve balances appearing higher than they actually were, and what was available. Creating an unrealistic representation of available resources. Based on current analysis the proposed 26-27 budget remains balanced through the planned use of this $7.3 million transfer from LEAF However, after correcting for the overstatement and accounting for plan reserve usage, LEAF reserves are projected to be less than a million dollars by the end of fiscal year 26-27 if we fully utilize them.
This significantly limits the city's financial flexibility and increases the importance of addressing ongoing structural budget challenges as we move forward into fiscal year 27-28. Looking at the pie charts for the general fund, taxes make up over 65% of the revenue sources. Other revenues and transfers equate to 16.1% for FY 26-27. That is reduced in 27-28 because we don't see that transfer in coming from reserves.
On the expense side, salaries and benefits make up 69% of the general fund costs. Services and supplies are just over 25%, where capital expenses are less than 1%. This shows how the general fund appropriations are distributed by department. Police Department has the highest cost at $43.8 million and represents almost 41% of the general fund. Fire makes up 14% at $15.1 million.
Finance makes up almost 12% or $12 million, however The finance department contains the transfers out from the general fund, so that would be $5.5 million related to operating and capital transfers from finance. The general fund subsidy of the library, $3.6 million. The general fund subsidy of the landscape districts, $764,000. The general fund transfers of 850,000 of the utilities franchise fees to the General Capital Fund for enhanced roadway maintenance.
That's all in finance. Taking a closer look at our revenues property tax represents 27% of the general fund revenues For fiscal year 26-27, the city is projected at 29.5 million and 29.9 million for 27-28. So this is up 646,000 or 2.2% from fiscal year 25-26. Sales tax is the largest general fund revenue source at 29 .7%. Therefore it's vitally important to the city's future.
Sales tax revenues are projected to increase to 31.9 million in fiscal year 26-27 up from 30.8 last fiscal year, approximately a $1 million increase and 27-28 projection is 32.6. In talking HDL who is our tax consultant. They have shared that recent influences on sales tax include various things so some of them are high inflation passes along the cost of goods and expected interest rate increase by the Federal Reserve shoppers took advantage of automotive incentives shoppers took advantage of retail e-commerce summer promotions that led to increased allocations from the countywide use tax pool Business industrial sales gained with light industrial orders and larger one-time investment reported.
Building material sales decreased, with more focus on repairs rather than larger projects. And cost conscious consumers have pulled back on retail purchases at specialty stores and are often dining out less frequently due to higher menu prices. Our transient occupancy tax revenues account for 3.7% of the general fund revenue, approximately $4 million and that has remained flat and is projected to remain flat throughout this period.
So we've been working on the rebalancing measures since we were here last year, you know on this cycle. And so in working with all the departments there's a number of balancing measures that are incorporated into the budget. So looking at this we have reductions and revenue increases so I'll go over the list So looking through the departments, we had a reduction of $1.5 million. Those are related to services and supplies. They could include contractual reductions for outside contracts, some training subscriptions projections. We looked at our revenue projections and we were able to increase that by $1,700,000. A lot of that is related to permit revenue.
I just won't talk about the closure of the pool, OK? We'll take that off the list. Deletion but we will have to work on that $344,000. That will be something we'll need to figure out. Deletion of vacant positions and or reallocated filled positions to other funds were justifiable. There was a total of 8.3 positions. No layoffs anticipated so 1.7 million dollars.
We are recommending to unfund limited service positions in library, recreation and parks, police and public works. This will be an impact to service levels. There could be a recommended closure that comes with that for example with the library we could be seeing an eight hour closure that comes with that and impacts on rec and parks programs. Elimination of subsidies to United Way, Historical Museum and Museum of Flight $70,000.
The budget assumes that most governmental fees are set at full cost recovery. We'll have the hearing after this, and so that represents an increase in revenue of approximately $2 million citywide, and for the general fund, that represents $1.7 million if those fees are updated. And it includes balancing the general fund for fiscal year 26-27 with a transfer in from one time Local economic augmentation fund so leaf we call it reserves of 7.3 million dollars We do have supplemental budget requests included in the budget, so these are Budget additions that weren't in the budget last year or they may have been adopted mid-year Or they may have been This is the first meeting of the city council.
How they were handled in the old system were paid out of revenue accounts. So now we have to actually budget them in an expense account, but their revenue backed. So there's some mechanical budgetary items too. So I'll go over in general and then I'll talk a little specifically more about some of the new costs. So 78, we call them SBRs were submitted of which 63 are recommended There's a number of revenue offset.
SB ours so those are limited service staff for the community development and police departments. There are existing contractual obligations that the city has entered into, that now we are seeing the costs come in for those. So those include, for example, the animal services contract. There's a number of software maintenance agreements that will have licensing fees and things like of those such.
We also have budget adjustments every budget cycle for the general liability and workers' compensation insurance premiums and claims increases, so that's really keeping up with our insurance rates. Others, replacement of the city's business equipment. So you know our equipment ends up reaching end-of-life we want to make sure that we keep up on our technology and in our network such as that.
The enterprise resource planning budget grant slash capital capital module So that with our new system, it did not come with a usable budget that would work for us. So this would be a new cost and I'll go over that in just a minute. We also have one full-time equivalent finance clerk, one for utility billing. This would be offset with what we'd be paid for by the utility fees for that.
Police department software, some of this was existing and some of it is new. I'll go over the new software. And then overall, the increase to the general fund is 1.3 million for fiscal year 26-27 and 1.6 million for fiscal year 27-28. 750,000 of that is the new software costs that we have for new systems that are already entered into. There's about 338,000 that are new costs in fiscal year 26-27 so we have $60,000 for the tax measure consultant. We put it in the proposed budget so that would be a one time cost and that item will come before you at a future date.
The consultant services for the annual comprehensive financial report. The city's been behind on its ACFR, we call it the ACFR reporting since 2018. The goal of my department is to get that caught up but one late report Causes the next report to be late. So over time, it's going to I anticipate either a two or three year project. The hope is to get it caught up in two years so this would be a one-time three year cost for that.
The budget, grant and capital improvement project module. So this would be a new portion for our ERP. We do have project savings to cover the first year in the installation but it will be a new cost in fiscal year 27-28 for the licensing costs. What this will provide is We won't be doing, we will be doing everything will be in one system and the departments will be working in that system. It will have transparency if you can create dashboards so you can see in real time what expenses are doing. We believe also that we will dial-in costs and be able to budget more Accurately closer to what the cost is will have more tools to budget close to what the cost is.
And so we believe ultimately, you know, we think it'll pay for itself. The police department so that so the new cost on the budget module is $252,000 in year in the second biennial budget The police department has some artificial intelligence for the communications division, and so that's a new cost of $100,000. There is also a new cost to increase backgrounds, $3,700.
And also for the police department, there's an access control request for access control in their department for $5,000. So a total of 338,700 in new costs for fiscal year 26-27 and 590,700 for 27-28. This chart updates the general fund fiscal forecast Expenses are shown in burgundy, revenues in green on the line and then the gap or the structural deficit is shown in the blue space.
For fiscal year 25-26 we showed that costs were plateauing revenues so you can see that point there where it goes all the way up but action was taken on January 20th to bring down the gap The chart shows that we are not out of hot water and that there's more work to do to close the deficit. The chart shows the true ongoing gap, the existing gap in fiscal year 26-27 continues to grow each year into the future and that's without any changes.
So this chart shows the composition of the general fund fiscal forecast categories. So revenues include operating transfers of 9.5 million, there's 7.3 coming from LEAF in fiscal year 26-27. And so here, really what we're looking at is the green line which represents our revenue. And so you can see the revenue meets all the expenses fiscal year 26-27 because we're bringing in reserves to meet that.
But you can see, if we look at the different colors. So the blue represents salaries and benefits. The yellow is services and supplies. And that purple is capital in outside agencies. So if we look at that... Actually, I'm sorry. I misspoke. The bottom is the transfers, correct? Yeah, okay. Sorry about that. So if you look here let's just focus on salaries and benefits and services and supplies so you can see that salaries and benefits increased over the time $18.3 million or 37.4% That would be from fiscal year 19-20 to 24-25. We've seen a drastic increase and you can see that in the chart, the blue area is the area that is going up so it's our salaries and benefits costs that have gone up significantly For services and supplies, there's also been an increase there.
We increased in 1920 so I would say this is before COVID when the budget was adopted 14.9 million and now we're up at 24.6 million fiscal year 24-25. So that's up 9.7 million dollars or 65% increases. So why? Why are we up so much? The cost of service has gone up for services and supplies, so it includes your utility charges. It includes water, refuse, sewer, professional services like animal services and then your internal service fund rental rates.
Also, we are subject to state mandates. State and federal mandates continue to expand to local governments' responsibilities in areas such as housing, environmental compliance, homeless response, labor regulations, public transparency and infrastructure accessibility. While these requirements advance important public policy objectives, many are implemented with limited or no ongoing funding support creating additional pressure on our city's general fund and funds to address the priorities. Mandates that cause budget pressures that we talk about at our finance conference and in the city we experience are the SB 1383 organics recycling The housing and the RHNA, I won't spell it out but the RHNA is all the housing compliance under the state rules.
Stormwater permits, homelessness response, pension and retiree health obligations, cyber security requirements we're going to have a new requirement where we have to change our domain to a .gov that's all an unfunded cost. And also the Americans with Disabilities Access Compliance unfunded mandates. Okay, so these charts hopefully you can see them on your monitors a little closer.
So this going over some of our personnel costs that have made those costs drastically go up Personnel costs of the first largest spending category and includes salaries benefits workers comp insurance general liability insurance health insurance retirement costs including our unfunded liability for pension. This budget includes increases starting July 1 for 2026 for compensations set in The memorandum of understanding agreements. So these are already contractually obligated costs for Santa Maria Police Officers Association and for the Santa Maria City Firefighters Union, there's costs that are increasing on July 1st of 2026 that are included in the budget.
The budget includes the minimum required contribution towards CalPERS unfunded actuarial liability Factored into the 25-26 budget and the next budgets. The latest actuarial increase, the minimum required contribution to $18.4 million so that was up approximately a million dollars just for the increase or 6%. Looking at the city's health coverage, so budgeted health insurance premiums paid by the City on behalf of the employees from the General Fund has increased from $3.67 million in fiscal year 2021 to $8.87 million in fiscal year 26-27.
The City allocates the cost of its Self-Insured Workers' Compensation Program. This amount allocated to the General Fund has increased from $3.44 million in FY 2021 to $6.94 million in FY 26-27. The city allocates costs for its self-insured liability program, otherwise known as general liability. And so that amount has also drastically increased over the years from $1.7 million for fiscal year 2021 to $6.34 million today.
1:11 – 1:2412 turns
Ms. Campbell, a question. Is Santa Maria comparable to other cities in the increases on the insurances? Yes,
yes. You know at other agencies their experience and those I talked to someone the other night they had a 14%
triple
the amount yeah it's the industry it's the providers it's different law changes it's you know things that we have to keep up with then we have to have insurance
so and this is sort of a loaded question but how do we compare say with other states Okay.
My guess is that it's
tough for them too. I saw our attorney
laughing at me. Well, my guess is that it's tough for them too. Thank you. You know, I apologize for the jumble. I don't know how that happened. Seems like something happened with the presentation that was provided so but I'll talk you through it. So this is Measure U Fund which is different than the general fund and so its revenues are anticipated to be $26.8 million for fiscal year 26-27 and $27.3 for 27-28 Measure U fund expenses are 28.3, so higher than the revenues and 28.9 for fiscal year 27-28. 69% of Measure U dollars support 132 full time equivalent positions throughout the city.
A structural imbalance still remains as Measure U expenses exceed revenue projections. So for fiscal year 26-27, the imbalance would be covered through a one time unassigned fund balance. However that's not projected to reoccur in fiscal year 27-28 so we'll have to address that. This slide shows the distribution of costs for Measure U The City Council authorized that 90% of the proceeds be spent on public safety related services and 5% If we want to bring those costs more in line with Measure U policy, then we'll need to look at reducing costs in the public safety category and not just putting those costs on the general fund as they have done in the past.
Okay now we'll transition to the enterprise funds. Okay so enterprise funds are comprised of water resources that's water and wastewater, solid waste transit and radio funds. Enterprise funds make up almost 48 percent of the total revenue in the budget and for fiscal year 26-27. So enterprise funds are funded from fees and, you know, they're self-sustaining funds. They have their own funding sources through studies and fees to the rate payers.
Enterprise funds make up almost 49 percent of the total expenses in the whole budget They are restricted funds that are self-supported by funding all operating and capital expenses through charges, the rates collected for their services. The city monitors the health of the water resources and solid waste funds through 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 are necessary to provide service.
Several large capital projects for water resources funds are proposed in this two-year cycle. They are listed in the budget book and so There' s going to be a lot of activity for water resources in the coming years. The radio fund accounts for and houses the cost for anticipated revenues associated with the city' s 700 megahertz trunked radio communication system and other technology related that can be utilized by our partners and other municipalities and school districts. The surplus shown I' Okay, so now we're transitioning to another fund. The Capital Improvement Plan and Maintenance and Equipment Projects.
We call it the CIP MEP or I'm just going to call it capital today. And so this budget So as I said, we have 52 capital projects represented in the two-year, no, approximately $158.3 million in appropriations. So how that's laid out is 50 million for fiscal year 26-27 and 108.3 million in the second year. Projects are funded by many sources you can see on that chart on the left like mitigation funds, enterprise funds, Quimby Act just to name a few.
And so you can see that outline there. The general fund is only funding 1.5 million in fiscal year 26-27 and 850,000 in the next fiscal year for projects related to... There's HVAC for the police department and maintenance upgrades to city property The adopted mobile equipment replacement and expansion budget for this two-year calls for 38 pieces of equipment to be replaced reflecting $12.8 million in appropriations in this fund.
Concerning issues, so there are some concerning issues for the capital fund as well. The enhanced roadway funding to capital has decreased by $1.6 million, or 65%. This was reduced based on findings related to a study commissioned by the Utilities Department for this current year that we're in. We're needing to use $5.6 million in LEAF to cover capital projects, so that's from reserves.
So although Public Works has approximately $100,000 in their budget and that is to do minimal maintenance throughout the year and address things that come up. The Capital Fund does not have a dedicated funding stream to meet ongoing capital maintenance needs and this will need to be addressed. Okay, so taking a look at our reserves. So we did our best to update this slide based on the new information we received from the auditor and so we're going to be continuing to analyze that over this next week and if there's any changes will bring that to you on June 16th but this slide represents what we are now tracking After meeting with the auditors on Friday, we learned that we have a lot less of the local economic augmentation fund reserves than what we were tracking.
And after fiscal year 26-27, LEAF reserves are projected to be less than $1 million. These chart changes are not reflected in the general fund forecast charts presented earlier in the slide deck so. You know if there's but that still you we're still facing that deficit I plan to bring a new reserve policy tonight But I had to pull that based on my meeting with the auditors. And so, I'll be working this week to bring that policy back on June 16th with recommendations for our reserve balances and how we're handling reserves.
As we look at these balances, I want you to keep in mind that it's vital and best practice to ensure that the City maintains a core reserve of two-and-a-half months or 16.7% of its operating expenses for cash flow purposes and for emergencies. So the city has made meaningful progress in reducing its structural deficit and those efforts should be recognized.
However, this development serves as a reminder that our financial rebalancing efforts are not yet complete. Continued collaboration, prudent fiscal management, disciplined budget practices and organizational adaptability will remain essential. to achieving long-term financial sustainability while preserving the services our community depends on. Finance department and all city departments will continue to work together to address the structural deficit So going over what lies ahead, keeping the hiring chill in place. Currently all hiring is being reviewed with the exception of the police and fire departments. We will continue that and hold where we can.
We may need to revisit our practices with safety. We'll continue to evaluate financial and budget policies and financial forecasts We'll review capital outlay project expenses and work on a funding plan for maintenance and projects. This may include the sale of various residential properties around the city, we've been discussing that and will be bringing back our proposal to your council to sell property.
We'll continue to review revenue generation opportunities. We'll continue working on short and long-term rebalancing initiatives that resolve the structural deficit and assist with strategic planning for the future, and we will evaluate the Measure U funds so that expenses align with policy and funding. So with that I would ask for to hold public testimony and or your comments and questions and your input in direction to staff and we'll return on June 16th with the recommended budget.
Thank you, Miss Campbell
any questions from the council miss? Oh, I'm sorry.
Yeah, just one thing I do want to say thank you to staff and the City Council for the work on this. I also want to just clarify one item that we just mentioned regarding looking at positions in terms of safety. We're talking about non-sworn positions. Take a look at the non-sworn positions. It's needed. We're going to keep them there but it doesn't need to be there for a short period of time. Those who were talking about in terms of safety not actual officers or firefighters Okay,
questions from the Council? No. Ms. Soto? I have
questions. Before I go into my questions, I want to take a moment to share my appreciation to the Budget Committee. You know it was a delight being able to spend a couple of hours with you when we were going over the budget and meeting with each department leader and so also to Department Thank you so much for your time and for walking us through this process.
I do have some questions, and one of those is pertaining to deferred maintenance in the capital projects. Conflicting priorities, of course, especially when we're trying to narrow that budget deficit gap. And so I'm curious if staff could provide us with you know what the current total deferred maintenance liability is and You know At the end of it How has that If What has that looked like over the last like?
I don't know 4 years or you know since this last budget. Conversation.
1:24 – 1:3419 turns
Thank you for your question councilmember Soto. We did a report a few years ago of facility condition assessment, and we do have that information available in terms of our facilities and what the deficit is as far as maintenance at our facilities. There's also plenty of deferred maintenance in our roadway network. We've made strides to improve that, as you know.
But we do have those numbers available that I could probably share with finance. We could work together on getting you that information.
Yeah, that would be great. And I think on the topic of capital improvement projects, I know that in the budget it talks about the HVAC system that's going to be, that we're looking at replacing. The police department? And so I don't know if you all can speak to that particular project and What would be the risk in potentially delaying that?
Sure. Mr. Haberkorn's here as well and with the IT department. It's been a project that we've been looking at for some time now. We know what I would, first of all it's the 911 data center air conditioning units. And so it goes without saying it's critical What we have are two units that serve that facility that I would call a 1990 Toyota Celica. That we keep putting new transmission, new motor, that type of thing in.
They're at the end of their life. The system itself, the ducting system was not designed for a data center. And so as we grow, as the police department grows it's time to upgrade that duct system. To make sure that we have space for future growth for the police department and then replace those units. And so instead of us just replacing the units which we can do and is an option. We looked at it from the perspective of okay what could we do to make sure that we have some runway?
So that we don't have to do this again in a few years.
Thank you for that. And then I also saw in the budget about $240,000 allocated to an ADA And so I don't know if you can speak to that. And I know that earlier this evening we had folks from the public come and speak on Simas Park and the need for that ADA improvement, and so can you elaborate on whether or not this would be included in Simas? If Simas would be included in that plan?
Yeah, so the city's endeavored we've actually heard a vendor. We started the project ADA transition plan update the city as a requirement of the ADA law did a transition plan a number of years ago and We've discovered deficiencies in that plan and we want to make sure that we have a new plan that essentially studies all of our public rights of ways, all of our public buildings, all of our public parks access and programming to virtually every touch point that the community has.
So it's a full citywide assessment of ADA to make sure that we're in compliance with the law.
And so would that include Seamus Park?
It would.
It would, and so once we wrap up that project what would be the next steps?
The point of that program is to delineate priorities in how we're going to comply with ADA and so from that project we should have some priorities that are spelled out for us to make recommendations on capital projects. And then we can come to the council and say, hey these are the priorities for ADA and we need to make sure whatever we say in that plan, we need to make sure we stick to it.
So it would likely inform future capital projects.
Because in the budget, it does speak to some of the capital projects including upgrades to some of our existing parks and facilities. I'm sorry if I'm honing in on this one particular park but I was unable to identify which parks we were speaking about I don't know if anybody can speak to what particular parks we're looking at adding or having included in the capital projects budget.
So with the ADA transition plan, it's comprehensive. Everything is going to be looked at. As Public Works we look to our Parks Department or Recreation and Parks Department to inform us where their priorities are. We know where we have different needs from a facility perspective and from an overall park perspective but it doesn't necessarily mean that that's the priority so the way we operate is the departments will tell us what their priorities are for operations And then we'll try to support their projects to that end.
So, we won't go around and say hey you need to do this work at Monami. Well maybe Monami doesn't get used. Maybe if they're top priority is somewhere else so it will have to be a collaborative effort with The department to come up with those solutions. Part of what will be introduced, the AB 1600 program has new facilities that'll be part of that program but not necessarily existing maintenance.
And I ask because as Mayor Patino's motion stated we're going to come back before the 16th to take a look how we can make this budget work particularly when it comes to keeping Paul Nelson open even during the winter months and so I think looking at every even capital project to see what perhaps could be delayed is definitely something that I would be looking at to see if there's any wiggle room there. And so, um, I don't know if staff can speak to that at the moment.
I can, we've looked at the capital projects and the ones that are in there are must
do's.
There is very little in there on the general fund side and the ones that are in there are serious issues. The good news with the pool is we put a lot of money into that project. We have new filters, we have new heaters, we just did the work on the pool itself a couple years ago. We've got new solar going in at the moment so there's a lot of good things about the pool except for the pool building. Don't talk about the pool building but the pool itself is in pretty good shape.
I would also add that for those particular projects, we were looking at them and they're funded with Quimby Act funds. So there's limitations on what you can spend Quimby Act funds on so we have to be cautious. We can't just transfer costs back to the general fund. Right.
And the same goes for the AB 1600 developer impact fees that could only be spent on expansion.
Right, right. I remember us having a conversation. You know, I thank you so much for that. My questions are now regarding impacts to some of the cuts that are being proposed in the budget specifically when it comes to library and so I know A nice allocation every year for the operation of our libraries. And so I don't know if there are any match or any type of conditions by us reducing the library's budget, If the revenue that we receive from the county would at all be jeopardized.
Thank you for the question. No, the libraries that are funded by the county are not impacted what will be impacted is our main library and so the operations we use limited service positions to help operate that facility. So we'll have to look at you know We'll have to look at the operations and see where there's less people coming in. And it's likely that there will be an eight-hour closure coming with this.
We just don't know if it's going to be spread throughout the week or if it's going to be on Sunday, so we'll work with the library director but the county libraries are not impacted and the funding is not impacted.
1:34 – 1:394 turns
I appreciate that. I think those are all my questions for the moment As we prepare to finalize the budget that's been presented to us, I think at the end of it, it's really going to come down to prioritization. Especially as we're hearing from our constituents about what services they rely on most and so I'm curious if staff could by any means tell us What may have the most wiggle room in the budget, if any, to kind of...
I mean, I know that those budget conversations that we had, those like two-three hour blocks where we met with each department head. You all said like okay this is just these are a must and everything else were kind of We're having to readjust our budgets too, to present what's going to be before you. But I don't know if you can speak to that or by any means just point us in some direction as we revisit this proposed budget?
I would say that it's getting challenging because we have been working on this. Our wiggle room was the vacancies and we reduced those. We took more out, you know we took some out at January 20th. We took more out now and so now we're at a point where most of our costs are personnel costs and we're at a point where it's that next layer People will be impacted, you know employees will be impacted. You know, so we'll have to prioritize where are the council's priorities and where will we look to reduce if we have to reduce which is likely and you know Another option is we have funding going towards economic development.
We have a contract, almost $1 million. But we didn't recommend that at this point in time but anything could be on the table really. But we're at the point where we've taken the vacancies out and now it's you know we're up that next layer of employee positions.
As you said that another thought came to mind and that was the conversation, the update that you just gave us on. Was it the 2023-2024 audit? And LEAF being significantly less in that reserve than we had anticipated. I'm not sure if I heard correctly but for some reason That more was transferred out than was originally approved. And so I don't know if you can speak to that, what happened there and what safeguards we can see moving forward?
So it was showing up on the budget side, it was showing up in two funds. So we thought we had more money than we did. And so the audit caught it And now we're back to reality. And so now, we have to figure out that was in fiscal year 24. And so now we have to catch everything up, check, verify, check and verify and see what the impacts are. We've done our best over the weekend to do that but we're going to continue making sure. So going back to that fiscal year what we've been given preliminarily matches You know, it's the other issue is that's why I was bringing a new reserve policy.
The city has this policy where You know, we're budgeting and the practice has been to bring it in regardless if we've needed it. And that's why the general fund was showing oh, we have all this money at the end of the year. And you know, that's one reason because they brought it in but then they had a policy where you have to put a third, third, third. A third back to LEAF, a third to capital and a third to pension reserve.
So there's a lot of movement going on And you know, I think we need you know, I will be recommending a different policy on that and thresholds practices. And you know with our new ERP system, we went from a 1998 old antiquated system. We've got a new system Eventually it's going to all be a lot better and we're going to solve this budget deficit. We are, we have to and everything is going to be better as we move forward but those are some of the reasons.
1:39 – 1:4519 turns
Do we see any As we project long-term, and I really appreciated seeing that in the budget. Was it five or six year project out? That was really great. Do we have any concerns when there's a lot of conversation right now at the state level, at the county level about HR 1 and its impacts. Are we concerned at all about that here locally?
Maybe Chief has something? No. Okay, I thought you were going to answer the question. I don't have answers on that right now but we can bring that back for sure.
Thank
you for your
time.
The chart where you showed the cost for personnel, for benefits, for pensions is very, very telling. It's just when you can really see it there how much it's costing us. I'd like to go back and I don't know if we should talk about this at the 16th or talk about now but you're talking about cost recovery on the use of the pool. I don' think people realize how much it costs We just had the pool redone, what was it? Three years ago I guess.
But what it costs to heat the pool, the chemicals, of course we have water, the water cost and but we charge a buck fifty or something to use the pool. Oh okay,
like magic! So with all the public comment, I anticipated some questions would come up on this. We all did. Dennis and I have been on the phone today and before this. So you can see looking at fiscal year 24-25 that's the last year of full cost we had. We expended $1.3 million to operate the pool. We brought in approximately 300,000 in revenue for that. We looked at our usage data and it fluctuates, it really does but we tried to come up with an average so looking at those winter months you know it goes anywhere from 700 to above maybe 2000 and then getting closer into the summer months in fall you see 2000 there was a month where it was over 10,000 so You know, that's the usage. Our fees are very low. So you can see there for a fee visit depending on age it's anywhere up to $3 to use the pool.
And we don't charge seniors I don't think at all. I think we stopped charging seniors years ago. That's not true? Oh OK. Yeah, OK. $3 so the city is subsidizing 75% of the cost yes okay and within those expenditures what does that include
gosh it's like it's like the wrong presentation I had another slide on this oh thank you Yeah, I don't know. I had another slide on this and I have it here so we have our $900,000 of that 1.3 is salaries and benefits. Okay? Yeah. Okay. So just to staff the pool lifeguards
what does a lifeguard make now was it 1650 ish you want to oh okay Supplies to operate the pool is over $300,000.
Equipment maintenance is $13,000 Contractual services, $30,000. And
someone had mentioned to me that when they have the swim meets at the pool the water has to be kept at a certain temperature? I didn't know that okay because when I used to swim it was cold and they didn't care about the temperature so that's interesting excuse me Mr. Smitherman
Thank you, Madam Mayor. I will tell you that if there's a one degree drop in temperature we will hear from the different groups so swim club and our competitive swimmers or lap swimmers like it cooler but our seniors like it warmer so we do keep it typically balanced but it does fluctuate as well which of course increases the gasps that we use which has gone up exponentially over the years
okay and that's included there in the expenditures then?
That is correct
yeah okay I just really sort of curious. Did you have a question?
Yes, I do. Mr. Battaglia? Question on where do you guys get these rates from $1.50 from 6 to 16 year old?
You go ahead and then I'll fill in after that.
These are historical rates and these were brought back to Council a couple of years ago through our revenue cost survey that we do. And just recently council approved that in December of 2025
1:45 – 1:504 turns
Any other questions from the council? Okay, I will open up for a public hearing. And I think some of these are gone. Elizabeth Nunes. Roberta Thompson. Michael Ashmore. I think he's gone. Edwin Weaver. Lorelei McConnell. Piper Manfredi. Nancy Jo Ward. Good evening, Nancy Jo.
Good evening, Mayor Patino and Council Members. My name is Nancy Jo Ward. I'm a longtime Santa Maria resident and retired educator. I want to begin by thanking each of you for your service balancing the needs of this city under real financial pressure is not easy and does not go unnoticed. I understand that tonight is a preliminary hearing and the final budget isn't adopted until June 16th The proposed closure of Paul Nelson Pool from December through May would save the city $344,000 in the two-year budget approaching 800 million.
Every dollar matters but I'd ask you to weigh the savings against the community as it stands to lose these services. I'm hopeful that this council will explore alternatives before they vote. This facility has deep roots in Santa Maria and as I say this, as someone who swims there. It is the only city-operated pool in Santa Maria, an amazing facility with an Olympic size competition pool and a zero depth entry recreational pool accessible to toddlers, seniors, and people with limited mobility.
It serves the entire community, children, lap swimmers, seniors, and families. Santa Maria has been committed to teaching its residents to swim for 100 years And living just minutes from the Pacific Ocean, that has never been more important. The CDC reports that swim lessons reduce the risk of drowning by 88%. This is a life safety issue not just a recreational one.
I want to speak especially about the children in the Santa Maria Benita School District. The Paul Nelson Pool is the only facility providing swim lessons to these students, and as far as I know there has been no coordination to continue these lessons elsewhere. For these kids this pool is the only place where they learn a life-saving skill. I want to address alternatives that may come up. Hancock College has a pool, but it serves its own students and programs and is in need of renovation itself.
The YMCA does wonderful work, but their pool is closing this fall for renovations lasting up to 10 months. That means both pools will be closed at the same time, and our community will have nowhere to go. I'm not here to make this harder for you, but I'm asking that between now and June 16th the council look seriously at other paths adjusting fees community partnerships grants or reduced hours not just closure.
My family worked to pass Measure U so that community services like this would be sustained. Paul Nelson Aquatic Facility is exactly the kind of facility that Measure U was meant to serve and protect. I hope we can find a way to keep Paul Nelson Pool open for the community that depends on it. Thank you very much. Thank you very much.
Steve Lewis? Laura Henderson. Hannah Boyer. Amber Watts. B-E-Y-E L-A-R. Cora. Is there anyone out there that turned in a slip that I don't have? Okay. Then, I will close the public hearing and I'll bring this back to the council. So, I need a motion.
Madam Mayor, if I may. Madam Mayor, I just want to announce that for this public hearing item 12A we received 120 written public comments that have been received and posted on the city's agenda webpage and that any that were received at 2 o'clock today will be posted tomorrow morning. These comments are related to Paul Nelson Poole That is mentioned in the preliminary fiscal year 2620 budget due to the number of comments received. The names will not be read, but a list of names is available if anyone wishes to review it and that will also be uploaded tomorrow morning. Thank you very much.
1:50 – 1:589 turns
Okay, so do I have a motion. It
was my understanding that it. That it's not. Mister Watson
I was just going to say yeah technically the only thing you need at this point is to give direction
I would say that. The direction would be to work with the right and so
we've already given direction to work with them swimming club. And this rash more. Thank you very much miss Campbell appreciate that. The next public hearing item will also be the updated 2026 user fee schedule there will also be given by Rebecca Campbell director of finance
Thank you Mayor Patino, members of council. Okay so the next hearing is related to the city's user fees I also want to recognize all the work that was put into this we did hire a consultant to work with all of our departments and there was an extensive review and a lot of work put into this so I want to thank all the departments for their time and efforts on this User fees are personal choice services.
They're for activities that are defined as services the city provides to individuals who receive some material benefit from these services. The user fee philosophy holds that the cost of providing these services should be borne by the group or the individual receiving the benefit, not the community as a whole. User fees services are differentiated from general public benefit services such as police and fire, which are largely tax supported.
Conversely community support services benefit community as a whole and are 100% by tech supported by tax dollars examples are police fire and street maintenance A comprehensive cost of services study was done in 2020, and on May 4th of 2021 the City Council adopted a master fee resolution increasing fees to 50% of the increased of the cost. So they brought the fees up to cover 50% of the cost to do those services.
And that became effective July one of 2021. The council also adopted a user fee cost recovery policy with the goal of getting to full cost recovery with their use of fees by July of 2026, the full cost recovery was achieved with adoption of the 2024 user fee schedule. So we contracted with Revenue Cost Specialists or otherwise known as RCS to update our user fees annually since 2022. And every even year forward, RCS will conduct a review and comprehensive study of the city's user fees by updating the city's cost allocation plan and salary position data and using the city's adopted budget.
For the last fee update in fiscal year 25-26, we had applied and your council adopted applying the consumer price index to the fees which was at 3% at the time. This year a more comprehensive process occurred where RCS met with city staff and all the departments to discuss the addition removal and or adjustment of user fees This round of recommended fee updates by RCS builds on prior year's analysis and further addresses specific fee adjustments requests from citywide departments.
The presented fees represent full cost recovery. Staff agrees with RCS's recommendation that the City Council adjusts the fee schedule by continuing to use the full business costing concept in order to create consistency in the establishment of fees and allow for timely adjustments to reflect changes in the cost of providing those services. In addition, the recreation fees should be set at the market by the market on the annual basis and should therefore not be included in the list of services that are increased annually by the inflation.
So the study resulted in 274 types of fees. You have 890 page packet included of backup information for each fee, so just outlining what's in the packet we have the summary of current fees and appendix A Appendix B holds the substance of RCS's work, so that's where every fee shows who is working on the fee, how much time it takes, the cost and if there's anything else included to provide the service.
The worksheets are the description of the service, the current fee structure and the recommended recovery rate and other pertinent information. Appendix C is detail of building and safety fees. The details of the current proposed fee for building safety are included. Appendix D is the detail of the library fees. And then appendix E is the detail of the recreation and parks facility and field rental rates.
So, the details of the current and proposed program and facility and field rental rates for rec and parks are in appendix E The proposed budget includes the assumption that most of these governmental fees are set to full cost recovery. Many of the revenues are calculated based on the current fee and the number of projected units of service, and the review of the historical usage of the service and projected levels.
This table shows a potential revenue growth citywide of $2 million, of which 1.7 million impacts the general fund. I want to note that due to a last minute change, these utility fees will need to be brought back in order to update correctly. The Utilities Department discovered that some of the requested changes were not incorporated into the final fee schedule published for the public hearing and they have been adjusted by our consultant but we'll need to republish those particular fees.
So with this recommendation, we ask that you hold the public hearing regarding the addition and update of the citywide user fees identified in the fee study. and the 2026 user fee schedule. We ask that you adopt a resolution approving the addition in the update of all the fees identified in the fee study and this 2026 user fee schedule excluding the adjustments for the following fees s 191 s 192 s 198 s 222 a one and a two. And so with that You know many departments are represented in this fee schedule and if you have any questions about particular fees we can dive into that.
Thank you. Any
questions from the council? Miss Soto?
The budget that was presented moments ago, that is with these user fees being adopted
Yes it doesn't interest. It does anticipate the user fees being adopted in those. You should have done this. But we're bringing it back so if there's any changes we'll have to make adjustments. Thank you thank you.
1:58 – 2:0624 turns
Any other questions from the council. I will open a public hearing. Madam Clerk, do we have any requests to speak? We do not, Madam Mayor. Any written comments? We do not, Madam Mayor. Thank you. I'll close the public hearing. Do I have a motion or second?
Before we get into that, I'm sorry. I know you asked if we had any questions but I have a question. Go ahead. During the budget conversation, there were some public comments that were made about some of the baseball fields. Like the scoreboard not being fixed or concerns about lighting in one of the parks and so as we stand here Preparing to adopt these increases, I would like to hear from Brecken Parks what the plan is for addressing those concerns that were brought up by some of our residents.
Mr. Smitherman?
Thank you for the question. Yes, we currently are seeking funding sources as Mr. Fulgoni alluded earlier we are underway with the ADA transition plan and we currently have requests out for funding specifically for CMS and will continue to look for grant opportunities In 30 years of writing grants, funding for maintenance projects doesn't exist. They're always happy to build new parks, new playgrounds, maybe even do a little renovation like we saw at Elks but to create in a proposal for a complete renovation and renewal It' s very slim that you see those out there either through private foundations, state foundations or federal foundations. There' s not a lot of money out there for those types of projects.
We are digging every day to find funding to make that park specifically open and get it open to our kids and families that use that facility. We use it as well at recreational parks so created a detriment to our programming that we're available to offer.
What about the lighting that was referenced? I believe it was
We typically charge
$14 an hour which doesn't cover the cost
of long-term replacement. As well as finances the we just did a study last year on our deferred maintenance It's in the millions. And so again grant funding and our budget not increasing over the years The money isn't there to replace those We were able to provide additional lighting at a couple of facilities that was through the ARPA funding and each one of those projects were in the millions as well, so to To remove and replace those lights at Minami would be between two and three million dollars per field.
The scoreboard-
Two to three million?
Yes. The scoreboard itself is one of those projects at a couple hundred thousand dollars that we're happy to work with the teams. They're really strong in fundraising and getting those private donations. There's other things that we have to go through like engineering, so it's having those conversations about all the steps that we have to go through. It's not that Recreation Parks wants to say no. We would love a new scoreboard up there but they are steps that we also have to take.
Mister Fulgoni.
I just wanted to add the reference to the Miami Park lighting Adam Basin. We did have lights at Adam Basin, which is directly next to Manami and we added lights at Crossroads Basin. The reason those parks were eligible for that funding through ARPA was because of expansion of play and that qualified under the funding guidelines to fund new lights at those fields. We would have loved to affix our existing fields but the funding didn't allow it.
Yes, so how long How long do we wait before we even get lighting in a park? We have we do we wait until somebody complains or how long has those lights been out. That's my question
The lights are functioning it is it is a challenge as we do band-aid them Throughout the years but it is time not only for Manami, but at Elks field we could use new lights as well we are keeping some electricians in business in Santa Maria by having them go out and really putting band-aids on them to keep them running. And so there are lights when they go out, and as soon as we find out, we do everything we can to repair them as quickly as possible.
Well that's not what the gentleman said. He said there was no lights but you're telling me there's lights? So just say when a light goes out in the park, how long do we wait until we repair it or we send somebody out?
As soon as we find out. We work with our local contractors based on the light bulbs which a lot of our fields are dated so some of the bulbs are harder to get And sourcing those from overseas can take three, six, nine months. We're currently working on a project at the pool just to get the new pole and we're talking 10-foot poles. It's taking nine months just to get the pole so as soon as we can usually most lights are repaired in 90 to 120 days considering we can find the right bulb replacement and the right contractor to get out there and do the work.
Thank you. We had focus groups. We got a grant for that, and we got that done. And then what was the park on the northwest side of town that we also did? The ballpark.
We did the two pocket parks. Oh, Oakley Park.
Oakley Park. Yes. And we got a grant for that. Rexton Parks have been so good about getting grants. So we're getting the grants. We're not letting them run through. We did the other pocket park on the northeast side of town. The soccer fields and it's taken us what is it five years
for the soccer fields from the point. The idea has been about nine years since we started that
conversation. Okay so from the time and we got money from the feds, we got money from the county, we got grants and it' s not like we're not going out looking for money but as Mr. Smitherman said to do the maintenance and the kinds of things that we need done and we don't have the money to do there aren't grants out there But if you want to build a new park, but still those parks are what?
Just a little park is what two million. Okay just two million and how much did our soccer fields going to wind up costing us?
About twenty million dollars. Okay
and started out like eight.
When we wrote the grants all in including property purchase was nine million dollars.
2:06 – 2:1519 turns
So it's pretty soon will be trillions, but right now is just millions. But
so for that part, for example, is a great opportunity with lighting. We'd love to include lighting. We have the opportunity down the road. The lighting for that project as of about a year and a half ago was an additional two million. So in the design of the park, we are getting it ready for lighting. Should the opportunity and grant funding become available for those expansion opportunities to be ready to go when that is available?
Yeah I think you know over the years not just when I've been on the council but over the years what Recs and Parks have done in this community is amazing because we have more parks than most cities do And that's just getting it built, not even the maintaining of the parks afterwards. So the soccer fields are going to cost us how much a year to maintain?
We're looking at close to $1 million a year. OK.
I know we're zeroing in on the lighting and I know that what's before us is the user fee schedule but Just an idea that I think it may be worthwhile to look at any partnerships with 3CE or PG&E about installing energy saving lights. I want to say that a couple years back, we had this conversation with partnership with PG& E and so I don't know if there could be something down the pipeline through that.
Earlier this year we had the council approved on bill financing a $4 million project to improve interior lighting within the city. That was a project that was proposed seven, eight years ago and we finally got that done but none of that lighting money could be used for outdoor lighting. We asked about precisely this to see if we could use some of that money to relight the fields and realize savings there wasn't an eligible I'm It will probably be anywhere from 13 to $30 million in savings by the time that projects done.
So we definitely are shaking the trees.
And we have used 3CE even for smaller projects. A couple years ago, they did purchase through a reimbursement program new pool covers to help us conserve heat at the swimming pool so we use less electricity. So like Brett said, we are really shaking the trees to find every penny we can to make sure our residents are happy with the park system.
Thank you Mr. Smitherman. Any other questions? Okay I've closed the public hearing right Madam Clerk? Okay so we're any motion or a second on this?
So I
have a motion and a second.
Who
seconded
it?
No further discussion, Madam Clerk can you please call the roll
Roll-call vote Passed 4–0 motion and a second. Who seconded it? No further discussion, Madam Clerk can you please call the roll · 1 under review
Show transcript
So we'll now move to the regular business portion of the agenda, the next item will be adopting a disruption policy in the event of an interruption Chief Deputy City Clerk Donna Schwartz will begin the report
Thank you, Madam Mayor. Madam Mayor and members of the City Council, this report is adoption of resolutions approving a disruption policy in the event there is an interruption to telephonic or internet services during a city council meeting and adoption of a public outreach policy. SB 707 was signed by the governor on October 3rd, 2025. It modernized the Ralph M Brown Act beginning in 2026 to expand public participation Increase transparency and adapt to modern technology. The legislation introduces new requirements and clarifications designed to improve governmental accountability, ensure members of the public have greater opportunity to participate in decision making processes.
As part of the amendments to the Brown Act, eligible legislative bodies which is City Council must adopt a disruption or telephonic or internet service policy on or before July 1st of 2026 at a notice public meeting and open session and not on the consent calendar. Staff has developed a policy that addresses the procedures for recessing and reconvening a meeting in the event of an interruption to these services, and the efforts that the eligible legislative body shall make in attempt to restore the service. SB 707 also requires the City Council to establish reasonable efforts which will be made by the city to invite groups that do not traditionally participate in City Council meetings.
Staff has developed a public outreach policy that includes actions to invite such groups. And boy, when I was preparing this, I was actually surprised at what the city actually really does now and has been with just quite a bit. And I've just added maybe something new but other than that our communications division has been really great about doing outreach to the public. Some of our staff members in the different departments when it comes to grants does a really good job reaching out to the public When it comes to letting them, informing them about grants or events that are happening in the city. We're also reaching out to any of radio stations or TV stations that not yet subscribed to our agendas and communications department has done that and encourage them to subscribe to our agendas.
We have a long list of media people, social people, individuals that currently subscribe to our agenda right now. And even our news releases when it comes to city events. And back to our responses to service disruptions, we will if there becomes a service disruption the presiding officer which would be the mayor would know to make an immediate announcement that the service disruption I'm sorry An immediate announcement to the public when there's a service disruption.
The mayor shall call for a recess of the open session and may convene the legislative body in an authorized closed session area consistent with the Brown Act. The recess shall last for about one hour or until services restored during the recess, city of San Luis staff shall make a good faith effort to diagnose and restore the disrupted service I'm reconvening the open session after the expiration of an hour.
If service has not been restored, the chief deputy city clerk shall report on the status of staff's efforts to restore remote access services and the City Council may reconvene to either adjourn the meeting extend the recess to allow staff more time to make a good faith effort to restore that remote access service or continue the open session portion of the meeting by adopting by roll call vote the following of its substantial similar findings so The city's family has made good efforts, so to say, to restore telephonic internet service in accordance with its adopted policy and the public interest in continuing the meeting outweighs the public interest of remote public access. And that's just an option.
And then the chief deputy city clerk would do record keeping and put that in the meeting minutes The time of when the service disrupted or the time the meeting was reconvene convened and finding adopted person to section 8. Of the requirements so this is just a little bit of the disruption policy what we created and a little bit about the public outreach policy and that concludes my reports if you have any questions I also have Joe here from communications if you have any questions as well
thank you when was the last time this happened to us?
A disruption I am actually unaware. I've been here for about two years and I haven't had anything. I don't know that there's been one, right? But we will be ready if in case Joe do you want to just in case I'm in on that. Just think
you never know with technology today.
2:15 – 2:2522 turns
Is this a state mandated policy?
Yes. Madam Mayor, Councilmembers, Directors welcome new Director Gallo thank you for being here so that this new policy specifically relates to the teleconferencing part that we are now mandated by the state to provide so This does kind of take us back to the COVID days where people can participate and even comment in the meetings via Zoom. Luckily, we have the infrastructure for that due to the update of our audio visual system here in chambers that happened in 2023. So if that teleconferencing ability is disrupted, that is when this comes into effect and we have to do everything and all that we can.
Okay so we had the old system For how long we had the old system. It was really, really old. Oh yes. We could have had it since 1905 as far as I know but so anyway, I don't recall it ever being disrupted but anyway
yeah zoom can be finicky. Cut in and out, we're familiar with the platform. We used it during that time. We've renewed that contract. We also have a service agreement with the integrator that designed this system, Triton Technologies, and they've been in here the past month a few times to kind of make sure as part of our service agreement to make sure we're ready to go for this and everything is operating as it should be.
Thank you. And I'll be coming back on the 16th with a status of our milestones and what we complete so far and what we're going to be providing starting our first meeting in July.
Thank you any questions? Okay, any requests to speak written comments? No Madam Mayor. Thank you Do I have a motion? Second Okay, I have a motion and second. Further discussion? Hearing none, Madam Clerk can you please call the roll?
Roll-call vote Passed 4–0 motion and second. Further discussion? Hearing none, Madam Clerk can you please call the roll? · 1 under review
Show transcript
The next item is the consideration of adopting resolutions to call a general and special municipal election Chief Deputy City Clerk Donna Schwartz will be also doing this presentation
Madam Mayor, members of the City Council. The report is adoption of resolutions for the general and special municipal election to be held Tuesday November 3rd 2026. The city of San Maria will conduct a general municipal election on Tuesday November 3rd 2026 to elect one member of the city council for district three, one member of the city council for district four. This year the terms of Council Member Aguilar and Council Member Soto will expire. The city of San Maria will conduct a special municipal election On the same day to fill a vacancy in the office of council member district one, which was created by the resignation of Councilmember Carlos Escobedo on March 3rd 2026 effective immediately. The term of the office in which the vacancy occurred ends November 2028.
The City Council also desires to submit to the voters a question relating Adding Chapter 3 AB imposing transactions and use tax. Recent polling shows that a large majority of residents express high satisfaction with the city's delivery services, however residents are also concerned with housing affordability, crime homelessness and cost of living as top issues facing Santa Maria. The city remains committed in delivering high quality services to the community and must sustain adequate staffing to ensure services and to address issues important to San Luis residents On May 5th, 2026 the City Council provided direction to place a one-half cent general sales tax measure on the November ballot seeking approximately $13 million annually in locally controlled funding to support the city's efforts to sustain and enhance the full range of city services including but not limited to public safety parks and recreation library public works and community development.
Six resolutions are required to initiate this year's election process. These resolutions must be adopted and submitted to the county for consolidation by June 25th, 2026. The city will be requesting the County Board of Supervisors consolidate its general municipal election and a special municipal election both with the statewide general election. The recommendation before you is to adopt a resolution calling in giving notice for Special municipal election on November 3rd, 2026 for the election of certain municipal officers and filling a vacancy as required by the provisions of the laws of the state of California. And for this submission to the voters they question relating to adding chapter three AB imposing your transaction in use tax and adopt a resolution requesting the Board of Supervisors with the county Santa Barbara to consolidate and render specified services to the city related to the conduct of a general municipal election and special municipal election both would be held on November 3rd.
And adopt a resolution adopting regulations for candidates for elective office pertaining to candidate statements submitted to voters and adopt a resolution providing for the conduct of the special runoff election in case there's a tie, adopt a resolution setting priorities for filing written arguments regarding city measure and directing the City Attorney to prepare an impartial analysis And adopt a resolution providing for the final rebuttal arguments for city measures submitted at the general municipal election to be held November 3rd, 2026. This concludes my report. Are there any questions?
Thank you. Any questions? Any answers? Okay. Are there any requests to speak or written comments? No Madam Mayor. Okay do I have a motion and a second? So moved. Do I have a second? I have a motion and second any discussion.
The next item on the agenda will be consideration to rescind resolution number 2026-76, Recreation and Parks Recreation Services Manager Dennis Smitherman will be presenting this report.
Good evening, Madam Mayor and council members. Tonight's item is the procedural step related to the landscape maintenance district assessment process. At a prior meeting, the council adopted a resolution of intention that set the public hearing for the proposed assessment increase for the special districts in special benefit zones. Since that time staff has determined that it would be appropriate to pause the proposed 3% increase and take additional time to review the matter.
This recommendation is not to abandon the landscape maintenance district process. Rather, it is to make sure we are complete in our due diligence before moving forward with any increase of property owners. The action before council tonight would be rescind the previous resolution and set a new public hearing date. This allows the city to reset the process, provide proper notice and return to council after staff has had the additional time to review the assessment supporting information or any questions that may be raised.
As you know, the Landscape Maintenance Districts are important because they help fund the ongoing maintenance of landscaping, medians, parkways, street trees, retention basins and related improvements. However before asking property owners to pay more we want to make sure the information is clear accurate and fully reviewed. Tonight's action does not approve an increase it simply rescinds the prior resolution and allows this city to move forward with a more careful and transparent process.
Staff recommends that council adopt the resolution rescinding the previous resolution of intention and setting a new public hearing date. I'm available for any questions.
Is there any questions from Council?
I do, how does this impact the proposed budget that was before us moments ago?
Great question, thank you. This is a special district and a special benefit zone fund that doesn't fall within the general fund so it is its own separate funding source and it doesn't have a direct impact on the general fund dollars.
Yeah I understand that it doesn't impact the general fund but it does impact this maintenance fund that we have in place that would be in the budget so would we see changes to that particular fund in the budget?
What you would see is the current fees would continue forward through the next fiscal year. The
current fees, but not the updated?
Not the 3%. Why the change? We want to be transparent and clear in reviewing each special district and special benefit zone a little bit more thorough this time around. What we may find is that we may need to go out in the future for additional funding, and we may find that we don't need to go to the full CPI in some areas.
Is this in any ways related to the landscape district, I mean to the leisure needs assessment?
It is. It's all tied together with continuing to be able to have the funding sources needed to continue to improve these areas and maintain them but again we don't want to charge an area that may have funding available and really dig into those areas that may need additional funding.
When do you foresee this coming back to council? In
one year.
2:25 – 2:3312 turns
Any other questions? OK. Madam Clerk, are there any requests to speak or written comments? No, Madam Mayor. Do I have a motion? Do I have a second? I'll second. Motion and a second. Any further discussion? Hearing none, Madam Clerk can you please call the roll?
Roll-call vote Passed 4–0 Motion and a second. Any further discussion? Hearing none, Madam Clerk can you please call the roll? · 1 under review
Show transcript
Next will be report by David Rollins our city manager
Thank you very counsel just a couple items for next upcoming agenda the highlight. Obviously the budget adoption urban water measure plan and we're also be discussed a joint extra exercise of JPA agreement or the Santa Maria Fair Park Authority at this time I'd like to can't do is Great a job as his son. I'd like to formally recognize Ramon Gallo, our new Recreation and Parks Director.
As previously mentioned he is from the city of Lancaster we have a few other employees from there as well. He's worked over there little over 18 years at the parks department started from the maintenance worker all the way up to number two in the department got a great personality. He is also a foodie. He has some great ideas wants to bring forward to the City Council and to us One of the first things he mentioned to me today was would it be okay if I go out to the different community centers and hold public meetings, just talk to the public, get to know what they want to have done in the Parks Department. And I said have at it. So we'll be doing that here in the future. We'll invite City Council if you want to come participate as well.
So we're really looking forward to a lot of his different ideas to come here. I went and visited, actually went over to Lancaster with Chief Williams to meet him, find out what his parks actually look like. We want to touch the parks. Actually, it was a great conversation that just responded right away. And I think he's gonna be a great fit for the community and a great fit for organization and really welcome Ramon here to our city. And just so you know, he came out here three or four times prior to the interview spent tonight went to the parks.
Before we started here he said would be OK if I meet with staff and talk with them. So you've been up here numerous times getting ahead of the game before you actually started. That's kind of person he is a hard worker dedicated employee and just really part very very proud to have him here enjoying our team. So Ramon thank
you welcome welcome. Now we'll go over the oral reports of council members and who would like to start? I'll
start. May 6th, I went to a communify meeting on May 7th. I attended the national day of prayer in the morning and at the evening service and on May 12th I went to the budget review And May 28th, I attended a meeting for the joint powers agreement for the Santa Maria Fair Park. May 29th, they went to the rodeo in the evening and then Saturday, May 30th, to the Santa Maria Rodeo Parade.
Thank you.
I'll go next.
Council Member
Batalla?
On 5-6, went on a ride along with Fire Station 1. 5-5 attended Student and Citizen of the Year dinner at the Elks. 520 attended Tip It Cop event. 521 went to a food distribution at Vida Church. 521 went to Alahinca College Scholarship Award Ceremony. 522 went to West Coast Customs Dinner. 529 I went to the Elk's Rodeo. And then 530 I went to the Elk's Rodeo Parade.
Thank you. Councilmember Soto?
They opened a new office here in Santa Maria, so it was really great to be able to connect with the folks here from the Ag Labor Relations Board. On May 18th I attended a town hall slash press conference in downtown L.A. to really shine light on the impacts of H.R. 1, The state's budget and how that's going to impact residents on the central coast, and particularly in Santa Maria when it comes to Medi-Cal and CalFresh access. On May 28th I attended the joint powers agreement meeting with city staff. That concludes my oral reports. Oh, and then today I attended the State of the Nonprofit Sector in Santa Barbara. Oh, how was that? It was a full house. It was great to hear just what an impact the nonprofit sector has on the Central Coast and you know how really the Central Coast has one of the highest number of nonprofits per capita in the state so it's definitely something for us to celebrate but also its shine light on the importance Further investment in nonprofits that are based out of North and Mid-County.
Thank you. May 6, I did the Ben Hayes Show on May 6th. I also attended the Sandra Elks Student and Citizen of the Year Award for Pat Cusack got Citizen of the Year Award. On the 7th, attended the National Day of Prayer event. Attended a LAFCO meeting. On May 8th, I attended Fighting Back Santa Maria Valley board meeting. On May 11th through the 12th Mayor's Youth Task Force we took a group of, I think it was 41 kids down to UCLA, down to SC, down to Northridge, went to the Getty Museum, the Broad Museum and Botanic Gardens.
May 19th, the Pastures Network Navigation on May 20th attended SBCAG. And at SBCAG and I think people need to know that with the direction of Mr. Fulgoni here that we are gonna be doing 101 and 135 interchange in 2029. That's not that far off it's just around the corner. And we have $8 million set aside for that already So on May 25th, no it would be May 23rd went to the cemetery and helped put out flags with a lot of our FFA kids from the two high schools.
On May 25 attended the Memorial Day ceremony at the Santa Maria Cemetery On May 26, went to Mission Hope Cancer Center where they celebrated the brand new machine that we have here in Santa Maria. And I think it's the only one probably in the county to detect cancer in the PET scans and CT scans. I went to the Elks Rodeo VIP reception and of course we did the Elks Parade which is always fun. And the weather was good, it wasn't raining and it wasn't Super, super hot. Yesterday I attended the Vandenberg Space Force Regional Housing Strategies Session at Vandenberg and our Congressman Carbajal was there and he'd gathered a lot of people just from the county To try to solve the problem of having more housing for Vandenberg because in the next five years they are going to double their employees and right now there is no place to put them.
So he wants all of us working together so we can move forward on doing that. And ladies and gentlemen, that is tonight's council meeting and thank you very much.