Santa Maria Council to consider 2024-26 budget and user fee increase Tuesday | Government and politics

City staff recommend that most user fees paid to the City be reduced to 100% cost recovery.

The recommendation follows a year-long study by consultancy firm Revenue and Cost Specialists to develop a fee schedule that would represent “full cost recovery” as permitted by law.

Council decided to move forward with a plan to phase in the increases in April 2023, while directing staff to report the information during the 2024-2025 municipal budget process with a plan for full cost recovery .

The proposed increases will impact most user fee categories, excluding library fees, facility rental fees, building plan verification and inspection fees, police services for special public events and fees for recreation and parks facilities and programs.

Although revenues from the City’s general fund have steadily increased, those revenues are “far outpaced by expenses,” according to staff. To balance the budget, a legal requirement of the Council, the Finance Department proposes using General Fund reserves, Measure U reserve funds, and Local Economic Augmentation Fund reserve funds.

The plan would leave the general fund, LEAF, and Measure U reserve funds with a zero balance through fiscal year 2024-25.

According to personnel budget information, overall allocations in the 2024-25 budget are 5.2% higher than those in the 2023-24 budget.

Additionally, council members will hear a report on the city’s fireworks education campaign, local law enforcement efforts, as well as a report on the upcoming Red, White and Zoom drone show which will take place on July 4 at the Elks baseball field.

The Santa Maria City Council meets at City Hall, 501 East Cook St.