While higher than projected revenue and a “hiring chill” imposed by Santa Maria city departments has had a positive impact on the budget, overall expenditures are still outpacing revenue in the fourth quarter, according to Finance Director Rebecca Campbell.

Campbell reviewed the city's economic trends at a recent Council meeting, noting that both sales tax (the City’s largest revenue stream), and transient occupancy tax revenues were down; but that property tax revenue increased over initial projections by $1.5 million.

In 2024-25 the City utilized the hiring chill, withheld $2.1 million in General Fund money to the Library — offset by the Library’s reserve fund — and used dollars from various reserve funds to balance the budget.

The reduction in staffing brought the total budgeted expe

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