The city of Buellton is in sound shape—with sales tax revenue high, a hefty safety net of reserves on hand to fight off economic headwinds, and more public services on the way, officials said Wednesday at their annual State of the City address.
To Mayor David Silva, it all adds up to one simple message:
The city of 5,500 residents is more than a gateway to the Santa Ynez Valley, more than a bedroom community, and more than what it’s known as by many—a place to fill a car with gas or fill a belly with a bowl of pea soup.
“We are so much more than that,” Silva said. “Buellton is really, as I say, she’s having her moment right now.”
More than 130 people gathered for the breakfast event—a mashup of official information and civic celebration—at the Santa Ynez Valley Marriott on McMurray Road.
Kicking it all off, two dozen area schoolgirls belted “It’s a Hard Knock Life” from the musical Annie, a recent production of the Buellton Arts & Culture Program.
A recent dip in city coffers notwithstanding, hard knocks appeared few and far between as Wednesday’s program unfolded.
Businesses are the city’s financial bedrock and pensions will be nearly funded at a projected 96 percent next year, according to Silva and city staff members, who updated the audience on key budget metrics covering primarily fiscal year 2025-26.
With the start of 2026-27 a little more than a month away, the city is halfway through a combined two-year spending plan of more than $60 million.
Buellton takes in $706 in sales tax per capita, more than any other jurisdiction in Santa Barbara County, despite charging consumers 7.75 percent, the lowest such tax in the county, Silva said, adding the city ranks 27th in per capita sales tax revenue out of 540 California cities and counties.
Operating expenditures this fiscal year have outpaced operating revenue for the first time in more than five years, but Silva assured the crowd that Buellton has reserves at more than 52% of expected spending, which is considered strong.
At last week’s City Council meeting, the most recent treasurer’s report from Finance Director Shannel Zamora showed a more than $700,000 drop in total cash and investments from February 28 to March 31.
But officials weren’t waving any red flags.
Some of that money helped construct a parking lot, according to the May 14 report, which also referenced a dip in interest earnings from money market accounts, certificates of deposit, U.S. treasuries and corporate bonds. “The portfolio remains sufficiently liquid to meet expected expenditures over the coming six months.”
Hosted by the Buellton Chamber of Commerce with a theme of “Making Buellton Better,” Wednesday’s update gave business owners and residents a chance to step away from the daily grind, to learn more about how local government is functioning and what’s on the horizon, event planners said.
“This is just a really nice way to showcase that,” said Kathy Vreeland, chamber executive director.
Money was only part of the story as officials highlighted a recently-built library, three new affordable housing developments, Avenue of the Flags revitalization, the expected replacement of a shuttered movie theater with a new Cottage Health patient care facility, two planned hotels and the potential for a new In-N-Out Burger.
The city also featured other initiatives in various stages of implementation, from a new children’s museum and self-service pet microchip scanning stations to aquatics programs, a dark skies ordinance designed to protect views of the stars, and a trail along the Santa Ynez River expected to eventually connect Buellton with Highway 154 and points in between.
As he wrapped his presentation, Silva opened the floor to questions.
Only one came: What’s going to happen to Pea Soup Andersen’s?
The familiar Highway 246 restaurant near Highway 101 closed in January 2024 only months before its 100th birthday.
Silva reiterated officials are working to determine which artifacts from the now-dilapidated property should be saved before the site is redeveloped.
During the event, the chamber honored Olivera’s Repair with a Beautification Award and Judith Dale, former Buellton mayor, with its Vincent B. Evans Award in recognition of her years of service to the community.
