A Central Coast city has come up with a budget plan for the next two years, but it’s one which includes using reserve funds in the face of a bleak financial outlook.
The Santa Maria City Council approved a $364 million budget for the 2024-2025 fiscal year. It’s up about 1.5% from the current one, to compensate for higher operational and staff costs. Growth in tax revenue has also slowed, hurting the city.
There’s a projected $21 million budget shortfall for the next year. The city is pulling from three reserve funds to cover the gap. But, city officials say that will deplete reserves, so program and service cuts will probably be necessary as well.
Fees for city services will also be going up. The fees currently cover 75% of costs, but the council directed staff to increase the charges so they cover 100% of the city’s costs.
