The first quarterly report for the 2009-10 fiscal year is in and the economic outlook for Santa Maria appears grim.

General Fund revenues and expenditures are in-line with budget and historical norms, however, revenues are $1.5 million less than the previous fiscal year at this time.

If the decline continues to the end of the fiscal year on June 30, 2010, the city could be looking at a $6 million revenue dropoff, according to Director of Administrative Services Lynda Snodgrass. While the information has yet to be audited and does not include year-end adjustments, accruals or disclosures, the information paints a picture of the city's financial activity and trends, Snodgrass said.

A quarter through the fiscal year, General Fund revenues are at 14.1 percent of projections, while spending is at 22.4 percent of projections. Expenditures are 2.6 percent less than a 25 percent benchmark and are $1 million less than the previous fiscal year. The spending decrease is attributed to required budget belt tightening across all city departments.

Sales tax, the city's top revenue generator, is down $474,000 from the last fiscal year and more than $675,000 less than two years ago. Receipts from bed tax and licenses, permits and fines are down $102,400 and $70,100, respectively.

Vehicles license fees, the city's third-highest revenue generator, is up $17,800 from this point last year. The second-highest, property taxes, won't reach the city until December.

The unemployment

rate is Santa Maria is at 13.2 percent, according to the report.

On Tuesday, the City Council is scheduled to hear the report and take action on three proposed budget amendments.

The resolution includes:

n A $459,100 reappropriation from Water Fund reserves for operational expenses related to water delivery.

n A $10,589 transfer from Community Development Block Grant funds to the General Fund to mirror General Fund administrative support to Community Development Block Grant funds activities.

n A $169,545 decrease in Measure D estimated revenues and appropriations and a $169,545 increase in State Grant Fund estimated revenues and appropriations to match the exchange of Measure D funds for federal stimulus plan funds with the city of Guadalupe.

The meeting is scheduled for 6:30 p.m. in City Council Chambers, 110 E. Cook St.

November 2, 2009