Agenda packet — Buellton City Council, February 24, 2022 (part 2 of 3)

10 Introduction Chapter 1 - Introduction
Architectural Character
Chapter 2 - Architectural Character
12 er 10, 2005 11Chapter 2 - Architectural Character
Example of Agrarian building form and materials.

The Cannery, Davis, California by Robert Hidey
Architects
Example of Agrarian building form and materials.

Bison Ridge Rec Center by PerkinsWill
Example of Agrarian building form and materials.

AGRARIAN
Agrarian style is unadorned and
utilitarian architecture stemming
from agricultural traditions beginning
during the late 1700’s and continuing
throughout the Manifest Destiny
period of western expansion. Agrarian
architecture predating the 20th century
made use of local materials and took
advantage of aspects of the land.

Agrarian buildings from the 18th and
19th centuries were actively used
as part of family farming and ranch
life. Farmsteads of the period exhibit
patterns in the relationship of their
main structures to the surrounding
outbuildings, fields, and farm lanes.

The architecture of these farms
resulted from a blending of building
traditions brought to the area by early
ethnic groups, including a high quality
of workmanship, and an assemblage
of a wide range of agricultural trends
adapted to the landscape. many
agricultural buildings were constructed
based on agricultural production
suitable to the local economy and
built from locally-abundant materials,
including rocks, dirt, sand, water, and
fast growing plants, primarily grasses
and some trees.

Agrarian style buildings are often simple
in geometry and arranged in clusters.

Buildings lack ornamentation and
details are simple and utilitarian.

The intent of the Agrarian style in
Buellton is to reflect the farm and ranch
influences that originally occupied the
lands within and surrounding what is
now the incorporated City of Buellton.

While the agrarian design style is meant
to be utilitarian, it is also important
that quality materials are used where
appropriate and feasible.

Building Form
Building forms are simple, reflecting
barn elements such as pitched roofs,
clerestories, dormers, cupolas, and
wood or metal siding.
• One and two story volumes
should be used in combination.
• Lower-gabled wing extensions
are recommended.
• Covered front porches should be
large, deep, and oriented toward
the street. The porches should
transition to the second story of

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November 10, 2005 3
City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 13
City of Buellton
Community Design Guidelines
Chapter 2 - Architectural Character
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:
 Agrarian,
 Mission Revival,
 Ranch, or
 Contemporary Ranch.

Users of the document should reference
the Architectural Character chapter for
all proposed development. Depending
on the project zoning, the applicable
chapter - Single-Family, Multi-Family,
Commercial and Commercial Mixed
Use, or Industrial - should then be
consulted for use-specifi c guidelines.

Although this document is not
geographically based, a portion of the
City that is zoned industrial has started
to develop with the Contemporary
Ranch architectural style. The Zoning
and Architectural Character Map on
the following page indicates the City
limits and extent of the area where the
Design Guidelines apply, as well as the
industrial area that should primarily be
developed with a Contemporary Ranch
architectural character.

Example of Agrarian building form and details.

The Orchards by LowneyArch
Parkway Market re-imagined
as Agrarian.
265 Avenue of Flags,
Buellton, CA
the building and should:
- extend across the entire front
of the building or
- wrap around one or more
sides of the building.
• Porch roofs should be supported
by substantial but simple square
posts and brackets.
• Porch railings, balustrades,
molding, and trim should be
decorative.
• Second story balconies can be
used to add articulation.
• Masonry and stucco chimney
elements are recommended.
- Twin chimney stacks are
suggested.
- Decorative spark arrestors
are nice additions.

Roof Forms and Materials
• Roof forms should have a low
slung roofline and be either a:
- gable roof,
- hipped roof, or
- shed roof at a minimum of
5:12 slope.
• Single pitch, basic roof structures
are appropriate to the agrarian
style; however, varied roof
pitches are also acceptable.
• Multiple roof planes should be
used to provide visual interest.
- Single story roof forms could
be used in conjunction with
two story gable roof volumes.
- Gable and shed roof forms
with moderate roof overhangs
could be used in combination.
- A one story skirt roof
transitioning to a second story
building volume is an option.
• Building projections should be
provided with shed roofs to
create interest.
• Varied roof forms that accent a
building, such as tower elements,
dormers, cupolas, gabled roofs,
clerestories, and extended
eaves with rafters, can be used
to add interest to large agrarian
structures.

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10 Introduction Chapter 1 - Introduction
Architectural Character
Chapter 2 - Architectural Character
14 er 10, 2005 11Chapter 2 - Architectural Character
• Roof materials should be either:
- corrugated, standing seam
metal
- concrete shake shingles,
- treated wood shingles,
- textured composition asphalt
shingles,
- flat concrete tile, or
- weathering steel.
• Roof materials should not be:
- brightly colored, glazed
roofing tiles or
- slate or clay tile.
• Parapet walls should be avoided.
• Deep overhangs, heavy wood
beams, exposed timber rafter
tails, and timber trusses are
suggested.
• Decorative vented cupolas are
suggested for added roof detail.
• Decorative vents are suggested
to add ornamentation to gable
ends.
• Weather vanes are indications of
farmland structures and provide
vertical landmarks.

Building and Accent Materials
Building materials and finishes should
be selected to reinforce the overall
design intent and to be consistent with
the desired architectural character
of the building. Street facades and
exposed sides of buildings should
be the most detailed and of highest
quality materials feasible while backs of
buildings should use similar materials
but may be less expensive and more
utilitarian.
• Material and finishes should be
selected for ease of maintenance
and durability.
• Buildings should be wood
construction with painted or raw
wood finishes.
• For visual interest, a mix of the
following exterior wall materials
is strongly encouraged:
- fire resistant wood siding
(horizontal siding is
recommended),
- horizontal lap siding,
Example of Agrarian building form and materials.

Solebury School by Studio Hillier
Example of Agrarian building form and materials.

Sweetgrass Commons By MMW Architects

Page 176 of 362 ends

November 10, 2005 3
City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 15
City of Buellton
Community Design Guidelines
Chapter 2 - Architectural Character
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:
 Agrarian,
 Mission Revival,
 Ranch, or
 Contemporary Ranch.

Example of appropriate material use.

Smuttynose Brewing Co by Steve McHenry
Example of
material use.

Home by Feldman
Architecture
- barn siding,
- wood clapboard,
- metal siding
- If used, board and batten
siding must be high quality
and must be integrated into
a design composed of other
wall materials and/or stone
type wainscot. No more than
50% of a building’s facade is
to be board and batten,
- stucco (surfaces should be a
smooth, hand troweled finish
to prevent the collection of
dirt and paint deterioration),
- brick (colored concrete may
be used to simulate brick), or
- stone masonry.
• Building walls should not be
made of the following:
- reflective or dark glass,
- synthetic materials made of
poor quality and resemblance
to brick or masonry,
- corrugated fiberglass,
- coarsely finished or
unfinished plywood,
- unfinished concrete block and
split-face block,
- shingles,
- T-111 siding, or
- slump stone block (unless
wall is over six feet tall).
• Where feasible, articulated
facades are encouraged.
• Stone masonry (simulated
square rubble) is recommended
as a building base to simulate a
masonry foundation.
• Siding should wrap around the
outside corners of buildings to a
fence line at a minimum, but the
use of siding on the entire facade
is preferred.
• Heavy timber construction
should be used in trellises, roof
overhangs, balconies, and other
architectural elements.
• Railings and balustrades should
be plain and symmetrical with
little or no ornamentation.
• Trim and accent materials should
be either:
- brick,
- wood, or

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10 Introduction Chapter 1 - Introduction
Architectural Character
Chapter 2 - Architectural Character
16 er 10, 2005 11Chapter 2 - Architectural Character
Example of Agrarian building form and materials.
- fieldstone.
• Wooden trellis elements can be
used throughout the project to
add shadows and human scale.
• Stone veneer that mimics field
stone should be incorporated in
select accent areas.
• Awnings are encouraged but
should respect the style and
character of the structure to
which the awning is attached.
• Awning details incorporating
iron or heavy timber structural
elements are recommended.
• The highest point of an awning
or its support structure should
not be higher than the midpoint
of the space between the
second story window sills and
the top of the first floor window,
awning, canopy, or transom. The
purpose of this requirement is to
leave a space between the top
of the awning and the windows,
trim, and other architectural
elements.
• Aluminum, galvanized, or
corrugated tin accents, gutters,
downspouts, and scuppers are
suggested.

Windows and Doors
• Consistency between windows
and door frames should be
maintained throughout the
structure to unify the building.
• The use of either very large
repeated or very small multipaned windows with mullions are recommended in window
and door designs to minimize
expanses of glazing, which
detract from the desired agrarian
character.
• Windows should be vertically
oriented with divided lights
and predominately small and
rectilinear.
• Rustic wood shutters are
recommended for color and
accent.
• Dormer windows should be used
and should extend up above the
line of the porch roof.
- Gabled dormers should

Page 178 of 362 ends

November 10, 2005 3
City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022
City of Buellton
Community Design Guidelines
Chapter 2 - Architectural Character
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:
 Agrarian,
 Mission Revival,
 Ranch, or
 Contemporary Ranch.

Agrarian Shed by Jensen Architects
Example of Agrarian building
form and materials.

The Inn at Meadowbrook
punctuate the second story
roof mass.
- Roof dormers should be an
extension of the building
facade.
• Decorative wood trim and
fascia detailing is suggested for
windows and doors.
• Doors and entryways should be
wood and compatible with the
building’s exterior materials.
- Side-lit front doors are
recommended.
- A pair of doors with divided
lights is suggested to provide
access to an upper balcony.

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10 Introduction Chapter 1 - Introduction
Architectural Character
Chapter 2 - Architectural Character
er 10, 2005 11Chapter 2 - Architectural Character
16b
Character Design Sketch Character Design Sketch
Character Design Sketch

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10 Introduction Chapter 1 - Introduction
Architectural Character
Chapter 2 - Architectural Character
23a
er 10, 2005 11Chapter 2 - Architectural Character
Chapter 7 - Illustratives
November 10, 2005 111
ratives
ments
e City
nts a
the
nd an
the site
tation of
allouts
etails
s that
al design
Before
Arched Decorative Entry
After
Terra Cotta Tile
Arched Window Treatment
Exposed Rafter Tails
Wrought Iron
Decorations
Fountain

T OFFICE

MISSION REVIVAL STYLE

BUELLTON POST OFFICE

Page 182 of 362 ends

November 10, 2005 3
City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 23b
City of Buellton
Community Design Guidelines
Chapter 2 - Architectural Character
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:
 Agrarian,
 Mission Revival,
 Ranch, or
 Contemporary Ranch.

Page Intentionally Left Blank

Page 183 of 362 ends

November 10, 2005
3 City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 111
City of Buellton
Community Design Guidelines
Illustrations of Potential Improvements
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:  Agrarian,  Mission Revival,  Ranch, or  Contemporary Ranch.

ILLUSTRATIONS

OF POTENTIAL

IMPROVEMENTS
In the prior edition of the Community
Design Guidelines (2005), this chapter
presented six illustrations showcasing
potential improvements to existing
structures within the City of Buellton.

Each page presented a “before” image
that illustrated the current state of the
structure and an “after” image that
showed what the site could look like
upon implementation of the Design
Guidelines. However, several of
these properties are located within
the Avenue of Flags Specific Plan
(adopted 2017), which requires that
the Art Deco design style be utilized
for new construction and exterior
remodeling of existing buildings. Thus,
the “after” sketches cannot be utilized
as a style guide for these properties.

The “after” sketches representing
the Agrarian and Mission Revival
styles have been moved and are
utilized as design examples in the
respective chapters on Agrarian and
Mission Revival. The remainder of
this chapter, “Illustrations of Potential
Improvements” has been deleted.

Page 184 of 362 ends

Page 185 of 362 ends

November 10, 2005 3
City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 113
City of Buellton
Community Design Guidelines
Architectural Character Addendum - Art Deco
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:
 Agrarian,
 Mission Revival,
 Ranch, or
 Contemporary Ranch.

Example of Art Deco/Art Moderne
building form.

Example of Art Deco building form.

CH Building, Tulare, California

ART DECO
Art Deco is an architectural style
composed of strong geometry, accented
by intricate detail and tied together
with bold or a highly contrasting color
palette. It grew in popularity in the
1920s and 1930s, but made its first
appearance in France at the turn of the
twentieth century. Examples of Art Deco
style buildings can be found throughout
the world, e.g. Mumbai, India; Napier,
New Zealand; and Asmara, Eritrea
– a UNESCO World Heritage Site.

In particular, the Art Deco style was
popular in Europe and America between
the First and Second World Wars, and
quickly came to represent the spirit and
glamour of the modern age.

The classic Art Deco style, with
variations such as Art Moderne, had
an important impact on architecture in
the United States, where it flourished
well into the 1940s. A unique style
of American Art Deco emerged, and
epitomized the flapper era, jazz,
cinema, and the great era of travel.

Famous building examples include the
Empire State Building and Chrysler
Building in New York, along with the
Art Deco Architectural District in Miami,
Florida.

Many U.S. cities, large and small have
examples of Art Deco buildings. Popular
design motifs used in Art Deco could
be easily adapted for mass-production,
which began in the 1930s. As a result,
Art Deco styled building components
became more readily available and
could easily incorporate local styles
and traditions into the overall Art Deco
design theme.

Los Angeles and the surrounding areas
have rich architectural histories, with
many Art Deco buildings still standing
(e.g. LA City Hall, Oviatt Building,
Bullocks Wilshire, Argyle Hotel) as
well as some of the best examples of
art deco theaters (e.g. Graumans’s
Chinese, Wiltern Theater). Regional
interpretations of art deco often
reflected stylized local elements and
design motifs; an example is Union
Station in LA, which is a mixture of Art
Deco, Streamline Moderne and Spanish
Mission Revival.

In smaller cities, scaled-down versions
of the Art Deco style became popular
for government and public buildings,
office buildings, department stores,

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10 Introduction Chapter 1 - Introduction
Architectural Character Addendum
Architectural Character Addendum - Art Deco
114
er 10, 2005 11Chapter 2 - Architectural Character
Example of Art Deco.

Example of Art Deco / Art Moderne.

KTU+N, San Diego, California
hotels, movie theaters, and apartment
buildings. Examples of Art Deco
architecture can be seen throughout
California, in small towns and
agricultural communities.

Given its convenient location at the
intersection of two prominent regional
highways (US 101 and SR 246),
Buellton was historically a primary
stopping location for travelers and
became known as “Service Town USA”.

Some of the old hotels, diners and gas
stations still remain today, and historic
photographs depict local commercial
buildings that reflect elements of Art
Deco and Streamline design. As
defined in the Avenue of Flags Specific
Plan, the Art Deco design style is
intended to showcase Buellton’s historic
“Service Town” era and car culture
elements, and to promote a distinct
identity and differentiating brand for
the downtown area; please refer to the
Specific Plan for additional information
Classic Art Deco
The classic Art deco style is defined
by geometric shapes, chevrons and
sunburst motifs, zigzag (or stepping)
architecture, and stylized figures and
ornamentation. Bold colors traditionally
define this style, though as the original
buildings have been renovated, the
colors have become more subdued.

Strong symmetry and vertical forms
along with natural elements such as
jade, silver and ivory add to this unique
style. The primary façade of Art Deco
buildings often feature a series of
setbacks that create a stepped outline.

Low-relief decorative panels can be
found at entrances, around windows,
along roof edges or as string courses.

Art Moderne / Streamline
Art Moderne, also referred to as
Streamline, is a type of Art Deco
architecture that emerged in the late
1930s and is more modern looking than
classic Art Deco. It is easily identified
through its clean styles and smooth
lines, which convey aerodynamic
qualities, and included the use of
glass bricks, iron railing, speed stripes,
alternative windows, and decorative
elements which often commemorated
the automobile and other forms of
transport. Classic building examples
include the Pan Pacific Auditorium in
Los Angeles and the Avalon Ballroom in
Catalina.

Page 187 of 362 ends

November 10, 2005
3 City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 115
City of Buellton
Community Design Guidelines
Architectural Character Addendum - Art Deco
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:  Agrarian,  Mission Revival,  Ranch, or  Contemporary Ranch.

Diner and Roadside Architecture
Influenced by the emerging car culture
in the 1940s and 1950s, evolving
interpretations of Art Moderne became
a popular style for diners, gas stations
and other roadside architecture,
including the 50s Diner motif, which
incorporates a streamlined design such
as rounded corners, linear forms, and
other elements. In accordance with
the Avenue of Flags Specific Plan, the
Diner style is intended for strategic
locations only.

Building Form
Art Deco building forms are simple,
symmetrical, and contain a strong
vertical element. Buildings pulling
influence from Art Moderne may instead
exhibit strong horizontal features. • Multi-storied volumes. • Stepped or set back facades. • Towers and vertical projections. • Recessed metal casement windows.
• Intricate coping with 3
dimensional relief.
• Horizontal banding in contrasting
color or with sculpted/geometric
design.
• Canopies with rounded edges at
windows and doors.
• Columns.

Roof Forms and Materials • Parapet with low slope roof. • Contrasting coping. • Decorative cornice. • Spire or tower to accentuate a corner or entrance.

Livermore, California
Example of Art Deco.

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10 Introduction Chapter 1 - Introduction
Architectural Character Addendum
Architectural Character Addendum - Art Deco
116
er 10, 2005 11Chapter 2 - Architectural Character
Example of Art Deco/detail work.
but may be less expensive and more
utilitarian.
• Buildings should not exhibit the
following properties:
- Pastel colors.
• Exterior wall materials should be:
- Smooth Stucco.
- Concrete.
- Smooth faced stone.
- Terracotta.
• Trim and Accent materials
include:
- Banded metal.
- Decorative iron work.
- Decorative surface moldings
for relief.
- Mosaic Tiles.
- Decorative glass in wall
openings.
- Decorative elements that
complement the style, such
as octagonal lamps and light
fixtures.
- Metallic accents.
• Building relief may be achieved
through the use of decorative
carvings.
• Awnings are encouraged but
should respect the style and
character of the structure to which
the awning is attached.
• Art Moderne elements including
round corners and recessed
horizontal bands of molding.
• Neon signage is allowed in limited
amounts.

Windows and Doors
Windows and are to be used to help
accentuate the verticality or horizontal
nature of the building.
• Consistency between windows
and door frames should be
maintained throughout the
structure to unify the building.
• Doors
- Unique entryway doors are
encouraged.
- Entry may be recessed and
embellished with reeding or
fluting.

Example of Art Deco/Roadside Architecture building
form.

Greyhound, Blytheville, Arkansas

Page 189 of 362 ends

November 10, 2005
3 City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 117
City of Buellton
Community Design Guidelines
Architectural Character Addendum - Art Deco
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:  Agrarian,  Mission Revival,  Ranch, or  Contemporary Ranch.

Example of signage.
• Windows - Metal framed and recessed. - Frames and mullions of a dark contrasting color.
- Multi-lite. - Round windows may be
utilized in design.
- Ribbon windows (accentuates
horizontal design).
- Narrow, tall, multi-lite
(accentuates vertical design).

Signage
To keep consistency with the Art Deco
style, it is imperative that the signage
meets the following requirements: • Raised or recessed lettering on bracketed signage is
encouraged. - Signage to be externally lit. - Enclosed static LED backlit signage is permitted.

Electrical connections must
be hidden.
- Neon signage to go through
approval process and shall be
allowed in limited amounts.
- Bright scrolling LED signs are
not allowed.
- CNC multi-colored signs are
allowed.
• Raised or recessed letter
signage to be permitted on face
of building. - Lettering not to exceed 3’,
but kept in proportion to
associated building
- First floor signage to be
placed between top of first
floor windows and bottom of
second floor windows
- Lettering on face of windows
is allowed, but may not
occupy more than 20% of
glazing
• Allowed materials, in style of
associated building. - Metal - Wood - Refrain from using the following:
• Plastic • Bright scrolling LED
signage

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10 Introduction Chapter 1 - Introduction
Architectural Character Addendum
Architectural Character Addendum - Art Deco
118
er 10, 2005 11Chapter 2 - Architectural Character
• Scale and proportion should be
appropriate to the style and size
of the associated and adjacent
buildings.
• Bracketing. - Ornamental bracketing to
be allowed, style to match
character of associated
building
- Wood bracketing to be
allowed, style to match
character of associated
building
• The style of lettering should
reflect the character of the overall
building.
• Location - Signs to be mounted a with
a minimum of 8’ vertical
clearance
- Avoid the use of pole and roof
mounted signage.

Lighting
All exterior lighting must be dark
sky compliant per municipal code
requirements.

The following standards and
specifications shall be used for all street
lighting. • Manufacturer: Sternberg Lighting • Local Representative: Prudential Lighting
• Model: A673A / SF-811 / 5PPT /
62 12 TFP6 / QL85 120v / BK - with 811 finial or approved equal
• Description: Ornamental
Pedestrian Lamp & Pole
• Finish / Color: “Black”
All exterior lighting shall complement
the particular Art Deco style of the main
building. This applies to: • Buildings & Accessory Structures • Walkways & Open Space • Security & Parking Lots – decorative lighting shall be used
and shall reflect to the extent
feasible and shall

Page 191 of 362 ends

November 10, 2005 3
City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 119
City of Buellton
Community Design Guidelines
Architectural Character Addendum - Art Deco
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:
 Agrarian,
 Mission Revival,
 Ranch, or
 Contemporary Ranch.

Avenue of Flags railings.

Avenue of Flags
bike racks.

Bench
Trash Receptacle
Site / Street Furnishings
Street furnishings shall, where provided,
shall be as follows:
• Bench
- Manufacturer:
- Landscape Forms, Inc.
- Model:
- Gretchen’s bench with
ornamental armrests.
- Description:
- “Gretchen’s bench” with black
ornamental armrests. Surface
mounted. 72” Length, 32” to
top of back, 17” deep. Ipe
wood.
- Finish / color: Frame “black”;
seat “ipe”
• Tree Grate and Frame
- Manufacturer: Neenah
Foundry Co.
- Model: R-8706-1 180 degree
48” square
- Description: One side with
single light opening. One side
with flag detail.
- Finish: natural patina
• Pre-Cast Concrete Trash
Receptacles
- Manufacturer: quick crete
products corporation
- Model: qr-cls3031w
- Description: steel reinforced
pre-cast concrete
- Texture: t4
- Color: c3
- Lid material: Steel; color
black w/ standard gloss
sealer

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10 Introduction Chapter 1 - Introduction
Architectural Character Addendum
Architectural Character Addendum - Art Deco
120
er 10, 2005 11Chapter 2 - Architectural Character
Example of Art Deco
Claypool Building, Needles, California
Example of Art Deco.

Las Vegas High School, Las Vegas, Nevada
Example of Art Deco signage.

CH Building, Tulare, California
Example of vertical elements and detailing.

Leslie Hotel, Miami, Florida
Example of vertical element.

Beach Plaza Hotel, Miami, Florida
Example of Art Deco compatible lighting.

Page 193 of 362 ends

November 10, 2005 3
City of Buellton
Community
Design Guidelines
Adopted by City Council
Resolution No. 05-21
November 10, 2005
Prepared for:

City of Buellton
107 West Highway 246
Buellton, CA 93427
Prepared by:

Amended February 2022 121
City of Buellton
Community Design Guidelines
Architectural Character Addendum - Art Deco
Community Design Guidelines November 10, 2005 11Chapter 2 - Architectural Character

ARCHITECTURAL

CHARACTER
Development within the City should
incorporate elements from one of the
following architectural styles:
 Agrarian,
 Mission Revival,
 Ranch, or
 Contemporary Ranch.

Tree Grate
Pedestrian Lamp
and Pole

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CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 10
To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: February 24, 2022
Subject: Review of Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ended June 30, 2021
______________________________________________________________________________

BACKGROUND
Staff is pleased to present the Annual Comprehensive Financial Report (ACFR) for the fiscal year July 1, 2020 through June 30, 2021 (Attachment 1). Although submitted to the Mayor and City Council for consideration, the ACFR is also intended to provide relevant financial information to the residents of Buellton, taxpayers, creditors, investors and other interested parties.

The ACFR was prepared to ensure a more comprehensive financial presentation of the City’s fiscal position which provides a broader scope than the basic audited financial statements. The City has won its eighth consecutive Certificate of Achievement for Excellence in Financial Reporting Award for the ACFR from the Government Finance Officers Association (GFOA). We will continue to prepare and submit the ACFR to the GFOA in anticipation of receiving the Certificate of Achievement for Excellence in Financial Reporting each year.

Attachment 2 is a glossary of terms within the ACFR. A detailed general ledger report showing revenue and expenditures (budget vs. actual) for Governmental and Proprietary Funds is also attached for reference purposes (Attachment 3 and 4 respectively). Page 26 of the ACFR presents descriptions of the major funds presented in the Fund Financial Statements.

The City contracted with Moss, Levy and Hartzheim, LLP, a firm of licensed certified public accountants, licensed to practice in the State of California, to perform the annual independent audit. The auditors expressed an opinion that the City’s financial statements for fiscal year 2020-2021 are fairly stated in conformity with accounting principles generally accepted in the United States. This is the most favorable conclusion and is commonly known as an “unmodified” or “clean” opinion. The independent auditor’s report is included in the Financial Section of this report. As part of the audit, Moss, Levy & Hartzheim also reviewed and performed tests of the City’s internal accounting control procedures to determine if there are any material weaknesses or instances of nonPage 195 of 362 FY 2020-21 Annual Comprehensive Financial Report Page 2 February 24, 2022 compliance. Adam Guise from Moss, Levy and Hartzheim will be in attendance at the meeting to answer questions.

As shown on Page 4 of the ACFR, it is organized into three sections:
 The Introductory Section is intended to familiarize the reader with the general organizational structure of the City, the nature and scope of City services and specifics of the City’s legal operating environment. It includes a transmittal letter that provides this background information and acknowledges the efforts and awards bestowed upon the City through a concerted effort of Finance and department management staff.  The Financial Section includes Management’s Discussion & Analysis, the Basic Financial Statements, which include the government-wide financial statements that present an overview of the City’s entire financial operations from a long-term perspective and the fund financial statements along with the notes to the basic financial statements, that present financial information for each of the City’s major funds, non-major governmental funds, as well as enterprise funds (Pages 1-60). This section also contains the independent auditor’s report on the Basic Financial Statements.
 The Statistical Section presents up to ten years of unaudited statistical data on the City’s financial trends, revenue capacity, debt capacity, demographic and economic financial statements and note disclosures in order to gain a context of whether the City’s financial health is improving or deteriorating over time.

FISCAL IMPACT
There is no fiscal impact to the City as a result of the 2020-21 ACFR.

RECOMMENDATION
That the City Council review and file the Annual Comprehensive Financial Report for fiscal year ended June 30, 2021.

ATTACHMENTS
Attachment 1 – Annual Comprehensive Financial Report for June 30, 2021 Attachment 2 – Glossary of terms
Attachment 3 – 2020-21 Revenue and Expenditures Report (Governmental Funds) Attachment 4 – 2020-21 Revenue and Expense Report (Proprietary Funds)

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CITY OF BUELLTON, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
=

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Cover photos include various Arts and Culture Projects funded:

Top right and bottom left: Nature Inspired Hubcaps Project Top left: Best of Buellton Mural Project
Bottom right: Memorial Day Kids Art Project

Page 198 of 362 ends

i : ~ ~, +~ ' ~
♦ ~ ~ ~ ~ ♦ ♦ .~ ,~ ~ .
~ i' ~ ~' ~ !
JUNE 30, 2021
FI~IA~~E ~EP~RTN~~NT
~hannel Zam©ra, Finan~e I~irector

Page 199 of 362 ends

~ ~. .
r
~_r., ` .~._~~.

Page 200 of 362 ends

' ~ ~ ~ ' ~

Page 201 of 362 ends

~NF~K~~~~~~K~~~~
TA~L~~~~~NT~NTS
T~b~~~~ont~n~---------------------------------------------------------i L~~erof~rm~mbt|-------------------------------------------------------~ Or~an~at~n~h~~-------------------------------------------------------..xÜ L~~ofO~~~~---------------------------------------------------------..~Ü ~l~~~~~L~~K~K~N
|n~~p~nd~n~Aud~or~R~~or--------------------------------------------------1 PW~n~~em~n~~~~cu~son~n~Ama~~~---------------------------------------------.~ ~~~c~nenda~~~~t~m~nt~
~~v~rn~ent~V~eRn~nc~!~tatem~nt ~
~tate~~nt~~N~tPosü~n-------------------------------------------------..~~ ~tat~m~n~or~c~vú~~---------------------------------------------------..~4 ~und~n~mia|~~~t~~~nt ~
~overnment |~und~~
Ba~n~~~h~e~ ------------------------------------------------------..~7 R~cond|~t~nof~ov~rnnn~nta|Fund~B~bn~~~heett~th~~t~t~m~nt c~N~~Po~~on----------------------------------------------------.~~ ~tat~m~nt~d~~v~nu~~ ~xp~ndhur~~ ~nd~h~n~es in ~und ~~~nc~~-------------------------.. ~~ R~~~nc Uat~n ~~th~ ~ove~n~~nt~ Fund~ ~~at~m~ntofR~v~nu~~ ~~n~~~~~r~|nFu~~~r~m~~~~~~
Acdv~~s-------------------------------------------------------.~O P~~ph~tery~und~~
~~t~~entmfNe~Po~t~n------------------------------------------------'.~2 ~~~~m~mtc~R~v~nu~~~~pens~s ~nd~han~esinNet~o~Udon----------------------------..3~ ~t~t~~~ntof~~~h~o~s-------------------------------------------------.~4 |nd~xmoN~t~~to~~~~~n~nda|~~~t~men~----------------------------------------..~~ ~E~U|R~~~0~~~~n~~N~~LUN~~RyN~~V~0~E~O~N
~~u~~~~u~~~~~~~~~r~|~~~~~~—~~~~~~|~
~en~r|~und---------------------------------------------------------Gl ~rn~poru~~nMann|n~~p~d~|R~venu~~und------.--------------------------------.6~ No~~s~otheRe~uir~~Supp~m~nt~||nfor~odon—~ud~~t~ry~om~~r~on~~h~du~~--------------------~~ ~ch~dukeofPro~or~onet~~har~ofNe~Pen~~nL~bUhy-----------------------------------.~~ ~~h~duke~~P~ns~n~~nthbudon~-----------------------------------------------G~ ~~h~dubyof~h~n~~sin~P~~U~~U~'andRe~t~dN~üo~-----------------------------------6~ ~UPpL~h8~N~~~|Np~~n~/~l~0~~~U~N
~~u~~~~~~~~~~~r~|nF~~~~—~~~~~ua|~
~~pú~||nmprov~rn~n~~~~~~~und—PN~dor~~p~~|Pr~~c~Fun~------------------------------G~ ~onm~~nin~~~bn~~~h~~~—Nonm~or~ov~rnm~nt~|~und~---------------------------------..7~ (~~ni~~~~~R~~u~~~~~~~r~in~~
B~~n~e~—Nonm~or~overnnnent~|~u~ds-----------------------------------------..74 ~~u~~~~u~~~~~a~~r~|n~~~~v~—~~~~/~~|~
Housin~~umd---------------------------------------------------------7~ Tr~~~yW~~~Üon~und----------------------------------------------------7B ~~~~exFund---------------------------------------------------------.77 ~~~~ure~~und-------------------------------------------------------..77

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~0~~K~~~~~~~K]~~~,
T~BL~~~~ONT~N~S ~~N~NU~Ú
~~~~T~~~~~K~K~~
Rn~nd~~r~nds~
Ne~~u~t~nbyC~~~~n~n~-------------------------------------------------.8O ~h~n~~~inNetPos~on---------------------------------------------------..~1 ~un~B~~nces—~ov~rnment/~unds--------------------------------------------0~ ~h~n~~sin~und~~~n~~~—~overn~~n~a(Funds--------------------------------------8~ ~~v~nue~ap~cüy
Ass~~~dV~|u~~ndAcu~~|V~|ueofT~x~b|ePr~per~'------------------------------------92 Oi~~c ~n~~v~r~~~n~Pr~p~~y~axR~t~s-----------------------------------------..g~ ~hndp~(Prope~y~~xpeyer -------------------------------------------------~4 ~chzdukeofTop~~Ph~~pa|~~~sT~xR~mbt~r --------------------------------------.9~ Prmper~'T~xLev~s~ndOd~~~ns---------------------------------------------.9~ Oe~~~~p~~~y
0r~~~nd~v~r~~dn~~~bt-------------------------------------------------~~ L~~~|~~btPWa~~n|nfonn~n~~n-----------------------------------------------..g~ Demo~r~ph~~ndE~~n~m~|nfor~~t~n~
~~mogeph(~~n~~con~mi~~tat~hcs-------------------------------------------..1O1 Op~r~in~|n~or~~t~n~
Fu|~~~~~nd~~r~tm~~~y~mp~y~~sby~unc~on------------------------------------~O~ ~p~r~in~|n~~ator by~uncó~n----------------------------------------------lO3 ~~püa A~~~~~t~dsd~~by~un~~n---------------------------------------------l04

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City of Buellton
January 21, 2022
To the Honorable Mayor, Members of the City Council and Citizens of the City of Buellton:

We are pleased to present the Annual Comprehensive Financial Report (“ACFR”) of the City of Buellton (“City”) for the fiscal year July 1, 2020 through June 30, 2021. Although submitted to the Mayor and City Council (“Council”) for consideration, the ACFR is also intended to provide relevant financial information to the residents of Buellton, taxpayers, creditors, investors and other interested parties.

The Letter of Transmittal provides a non-technical summary of City finances, services, achievements and economic prospects. We ask that readers who wish for a more detailed discussion of the City’s financial results refer to Management’s Discussion & Analysis (“MD&A”).

The City’s MD&A can be found immediately following the report by the independent auditor.

State law requires that every general purpose local government publish, within twelve months of the close of each fiscal year, a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended June 30, 2021.

The City Administration is responsible for the accuracy of the information contained in this report, the adequacy of its disclosures and the fairness of its presentation. We believe this ACFR to be complete and reliable in all material respects. To provide a reasonable basis for making this representation, we have established a comprehensive system of internal controls designed to protect City assets from loss, to identify and record transactions accurately, and to compile the information necessary to produce financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of control should not exceed the benefit derived, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The City contracted with Moss, Levy and Hartzheim, LLP, a firm of certified public accountants licensed to practice in the State of California, to perform the annual independent audit. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation.

The auditors expressed an opinion that the City’s financial statements for fiscal year 2020-2021 are fairly stated in conformity with accounting principles generally accepted in the United States.

This is the most favorable conclusion and is commonly known as an “unmodified” or “clean” opinion. The independent auditor’s report is included in the Financial Section of this report. iii

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~]~'~~~~.~~~~~~hJ
~ettar~~~r~~~n~~t~~
~~rt~e~~sr~~~e~~u~~~~~~~~~
The ~~v of ~ue|bon has operated under ~he [ouncU-~~ana~er forrn of ~overnrnent sinc~ incorponationinF~bruary199~.TheK4~yorand~ounci|forrn~he|e~is|ahvebodyth~trepnesent~ the oornrnunityand is ennpovveredtoforrnu/aLe cityvvide poUcy. [ounci| rnennb~ns servefoup yearLerrn~, vvith~vvo rnernbers e|~cted ev~rybwoyears. ~tartin~in ZO16,the Citytr~nsitioned frorn an ~ppoinLed ~~~yorto an e|ec±~d ~~ayorvv~Lh a tvvo-yearterrn. The ~ity ~~~na~er is appointed by the [ounci| and serves as th~ chief adrninistr~bve of~cer of the or~~ni~ation ~esponsib|e forth~ adrninistration of[ity a~~irs, day- o-d~y op~ration~ and irnp|ernentation of [ounci|poUcies. |naddi~~ontothe~\ty~~ana~e~~h~[~tyAttorneyisappoiniedbyandreports dire~~/ytothe~ouncii
The [ityofBue|hon, [~|~~rnia vvas incorp~rated in l~~~ ~nd is in Lhc centna| coast partofthe s~~~e, vvithin ~he ~ant~ Ynez V~U~y. |~ is |oc~t~d atthe re~ion~| intersec~ion ofHi~hvvays lO2 ~nd ~4Gabou~4~rnUesNorthofthe~bvofSam~aBarbar~. Bue|~onoccupiesanareaofl.Grni|esand serves ~ popu/edon ofabou~ 5,4~~, consistin~ of abou~ l,9GO hou~eho|ds vvithin the [ity.

Refus~ coUec~ion services ~re under~ontr~ctvvi~h ~~~rbor~ |ndustries. VV~terdistribution ~nd ~~nitary sevver services ~re pnovid~d throu~h departrnen~s of the ~>ty of BueUton and ~re rn~in~ainedassepar~tefundsintheproprietarysec±ionofth~se~nanci~|st~tennent~.

TheA[FR\ndudes~Ufund~ofth~[~y a~vveU~saU~overnrnenL~|or~an\~ationsandact~~ies forvvhichth~[ounci|h~s~nancia|~ccountabiUty.The[ity~dop~s~biennia|bud~etvvhichserves ~sth~foundationforLhe[i~/s~n~nd~|p|annin~.Thebud~etprocessstartsvv~htherequests frorn eU dep~rtrnen~s for revievv and indusion into th~ proposed bud~~t. The City uses ~ cornbined pro~r~rn and Une i~ern fornnatd~si~nedto provide a ~ornprehensive rnena~erneni con~roi~nd~sc~|p~ann~n~~ys~ern.Thisforrnati~a\rne~~tach~ev\n~~oa|sandoh\ectiv~sa~the o~cration~| /ev~|stha~ are consistentvvith OLy~ounci|'s ~oa|s ~nd prioritie~. The Oty ~~ana~~r endFin~nc~Dire~~orrevievvtherequestsandpresentLheproposedbiennia|bud~etto~he~ity x ~ounci| for revievv and ~dopd~n before June ~Cy . Th~ [ounci| is requ)red to ho|d ~ pub|i~ hearin~ » on th~ proposed bud~et ~nd ~o ~dop1 ~ ~na{ bud~et no |aLer~han Jun~ 5Cy . The bud~e~ is ~d~ptedbyreso|ut\onofthe[ity[ouncUand,upon~neiadopúon,be~onne~~he~itv'sspend}n~ authority.
iv

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~~~'~~F~.~~~~~~~~
~~tt~rmf~r~~~mn~ts/
~~rt~e~e~r~~~~~~~~~~OL~~~~
E~ON~}y~|~~~~~DlC~hJ~~~~F|~~~LC~UTL~~~
Fisc~| Year endin~June ~[l ZO~l rn~rked ne~rk/ lG rnonths frorn the d~~e that th~ [OV/D-l8 p~nd~rnic forced a shutdovvn ~o preven~ thc ~pread of~he [DV/O-l9 virus. Such shutdovvn drasticaUy irnp~cted the nation's econorny and created unce~einty aboutthe future eoonornic irnpact.The~O~O'2lori~ina|adoptedbud~etvv~~d~ve|op~dvviththeassunnptionofcontinu~d econornic ~nowóh. The [OV|D'I~ pandenni~ for~ed the [)tyto ne-ema|uate and arHust p 'e~~ed revenueandexpenditures. The[ity[ounci|adopLed~narnendrnen~toth~FY~O2O-~lbud~et 1hat reMected potenda| revenue |osse~ vvh}|e rnaintainin~the s~rne |eve| ofservice by deferrin~ capita|innprov~rn~ntpr '~cts.
~ortun~te|y,rn~nypaÓ~oftheeconornyrecoveredquicNya~~r~OV|D-lBvaccinetion~b~carne avaUeb|e, an edd~iona| round of ~~irnu|us checks vvere sent ou~ ~nd res~rictions ~ased. |n ~~Ufornie,th~~~~y~tHonn~Ord~rvv~sUftedonJunel5,2O~l~Uovvin~~Ubusinesses~ore-open vvbh nevv rnask\n~ nequircnments. Abhou~h there is opt~rn~~rn \n econorn~c r~covery vv~h increasedv~ccinati~nr~tesandreopenin~of~choo|~andbusine~ses,itis~~iUdifhcu|ttopredict consurn~r~p~ndin~behaviorsasrnore[OV|~-1Bveri~nts~ontinueLo~~p~ar.Theseveri~yof~he irnpact of[OV|D-l9 on ~he ~itv's revenu~s vviU r~/y on the |en~~h ofdrne the [ounty of~ent~ Berb~r~h~a~hord~rinp|ac~.The~ityishe~vi|ymeU~n~onsa/e~t~x~ndtnansien~occup~no/~~x The [~v h~~ ~xpehenced a pehod of~r~vvth over the past ~~vens| yeans. |n the |asL ten ye~~~ th~popu|~tionofth~[ityhas~rovvnbyne~r|yl~pencent.Oeve|oprnentin~heOtyhaspro~pered vvith fouÓeen open p '~~~~ ~h~~ inc(ude rnu~i~arnUy resid~ntia|, industrie|, cornrnerciaL ~nd rnixed u~ed p '~cts. Revenues` such as proper~'tax~nd s~|~~~ax' ~r~ aU afh~c~~d posi1ive|y frorn ~he in~re~sed deve|oprnenL ~oth in~irec~|y frorn the ~row~h in popu|adon ~nd direct|y by the~row~h inasses~ed proper~/va|ue.

Tuurists cnndnu~ to vievv 8ue|hon as ~ desLination, as refec~~d in the in~rea~es in sa|e~ tax and TOTrevenu~.The1opthrees~|e~~~xc~te~ohesfor~he~ityfortheyearended]une3[l~O~l vvere~AutosandTnanspor1~tion,Fue|and~~n/ice~~~tions,ond[ountyand~~etePoo|~.Sa|estax nevenuevv~s~~.~rniUionrnakin~itthehi~he~~s~|es~axrev~nue~he[ityhasreceived.~~|est~x revenue vvas ~~~7,S~l(l~.679~\ h\~hercornpar~d to FY~Ol9-~O and ~~~~,G~~(O.~596\ h~~her TOT re~ov~ry i~ tnendin~ upvv~rds to ne~r|y pre-panderni~ |eve|~. Forthe Osc~| year en~ed ]une 3[L~O~1,TOTrev~nu~vvasabout~~.OrniUion,~47I,2SG/l~.4996)hi~hercornparedto~heprior ~sc~| year. TOT in FY 2Ol~-2Ovvas ~~.5 rnUUon ~nd pr~ortothe pandernic vvas ~~.1 rnUUon. The Oty|ost~bout~5G~,OOOinTOTrevenu~fnom~~erch2O~OtoJune2O~Oconnparedtothesarne periodin~O19. TOTrevenuefrornW1ar~h2O~land]une~O~lvvas~1,~~6,~5~indic~dn~ahi~h~r th~nexpec~~drapidrecovery.
v

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~]~~~~F~~~~~~~~~~
~ett~r~~~r~n~nn~t~|
~~rt~e~~sr~~~~~~un~~~~~~~~
The ~ity ~ttracts ~ si~ni~cant vis~or popu|ation and nurnerous ~rnp|oyees cornin~ frorn nei~hborin~ 5~nta Barbara [oun~y 'urisdictions. ~rnp|oyrnen~ is ~oncen1nated vvithin accornrnod~~ion and food ~ervices, rn~nufac±uhn@~ ret~i| tnad~ and a~ricu|ture. The rnedi~n househo|d incorne is~~~,O99~ornpa~edto ~74`~~4forSanta Barbar~ [ounLy. Th~ househo|ds ~re rnost}yovvner-occupied, nevver housin~. There is ~ |ar~e rnobi|e horne popu|~don ~onsisLin~ ofabout~OY6ofthepopu!~tion.Ac~ordin~toZiUovvHorneVa|u~|ndex,BueUbzn'srnedianhorne va|ue inJun~ ~O~l is ~G~8,OOO. Bu~Uton horneva|ues hav~~one up 1~.196ov~rthe priorye~r an~ ZiUovv predicts ~heyvviU rise ~O.7~~ vvithin a year. The rnedi~n horne va|ue for ~ant~ B~rbara ~ountycornpare~at~GG4,OOOa/on~vvithLhe~aUforniava|ueof~57~,OOO.

Accordin~~~ |~borrnarketd~ta re/eas~d h«th~ Ernp|oyn~en~ Deve|oprnent Dep~r~nnent/ED~) the unernp|oyn~ent rete in BueUton in]une ~O~lvvas ~.l~ívwhich decreas~d by 1.796fn~rn the pr~viousye~r.ThisratecontinuestosteyvveUbe|ovvthest~tevvideaver~~e. Theunernp|oynnent rat~ for ~aUfornie decr~a~ed to O.OY6frorn 14.996 in June ~OZO. ~~Ufornia is stiU hi~herthan ~he pre-pand~rnic rateof4.296 inJune ~Ol~. The Nahona| Unernp|oyrnen~ Rate in Jun~ ~O~lvv~s |ovverthan ~~Ufornia ~~~.9Y6.

Rsca| Year 2O~O-~I rnark~ the se~~nd y~ar ofthe ~h« s Biennia| Bud~et for FY ~Ol~~~O and FY ~O2O-~l.TheBi~nni~/Bud~etvv~sdeve|opedto~Uovv~heabi|úvtornaintain|on~~nan~ep|annin~ efforts, a~Uòy to d~ve|Vp r~a|is~ic ~~~n)~can~ obiectives, en~oura~e rnor~ efhcient spendin~ p~t1erns ~nd to s~vetinne an~ resourc~s ~Uo~~~ed to prep~rin~an annua| bud~~t. The bud~~~ vv~s reforrn~Lted Lo efMcient|ycornrnunicaLe infornnadon ~oth~ c~rnrnun)ty and ~o ~i~y ~ouncU rn~rnb~r~. Th~ O±y ~|~o produces a Mve-ye~r [apita| |rnprov~mnent Bud~~t ~ha~ i~ updaLed annu~Uyb~sedonpr 'ectstatu~and~urren~econorn~ccon~it)on~.The[itycontinuestoimprove our ~nancia| tr~nsp~r~ncy via our O~y vvebsite by providin~ rnonth|y ~nd quarter|y interirn ~nanc~a|reports.

Dur~n~th~~~ca|ye~rend~dJune~[\2O~l,the[~vsuccessfu|k/under~~okthefoUovv~n~Lon~~ Ternn Financia| P|annin~end ~~ 'or|nitiatives~
~ ~incethe s~artofLhe [OV|D'l~ pondennic,the C~v has proact~v~|y en~~~~d \n ~ctivh~es toprotectLheh~~/th~ndsaf~~«ofthecornnnunity~ndcornrnitt~dtothes~feopenstions ofes~enda|serv\cessuchas~
o ~ity HaU |~bbyvvas dosed Lo~he pubUcbut~~senda| ~ervices have been rnad~ evai\ab(e safe(y by rnaintainin~ r~quired socia| distandn~ prot~~o(s ~nd te|~vvorkin~.
o ~ity~ouncU ~nd P|annin~[ornnni~s\on nneet\n~shave been conduc~~dv(aZoorn andbro~dcastUveon~he~ityVVebsi~e.~onnnnuni~yinvo|vernenti~rnee1in~shas beenconduc~edbyernaU.
o Broadb~nd vv~s incre~sed ~tthe [i~y~~und| [h~rnb~rs. |n addibon, an updated re~ordinp/str~arnin~ sys~ern vvas instaUed Lo f~ci|itate Uve ~~r~~rnin~ of [~ty ~ounci|rneetin~s.
vi

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~~`~~~~~~~~~0[~~~
Lett~r~~~rs~smr~tsi
o Bue|~on Recreat~on ~dapted their pro~narns to cornp|yvv~h ~ounty resLhctions and~u~~~st \onsh»o~er\n~nnoneou~doorpro~rarns.
o O~y ~ound| passed Reso|ution No. ~O-1O to ~efer vveter shutoff~ ~nd vvaive pena~iesonvvat~randvv~s~evveterbiUs.
o [ity [ound| passed Reso|utinn No. ~O-l7 to ~r~n~th~ ~ity ~~ana~ertemporary au~horityto~UovvdeviationfrorntheK~unicip~|[odenequirern~ntsto~Uovv|oc~| res~~unants1oopen~~he|yvvithseatin~a|on~~>devva|~~pa~kin~are~s,andvv~h)n the pubUc ri~ht-of'vvayin certain in~t~n~e~.
o Ci~y Counci| p~s~ed Re~o|ution No. ~O'O4, an ur~ency ordinance to tenlporari|y prohibi~ ~victions of resid~nt\a! and cornnnerc\a| 1enant~ ~r\sin~ ou1 of~n~nda{ irnpactof~he~[)V|D-1~pand~rnic.
m [i~y [ounci| ~Uoceted ~74,~~O ~o ~ontinue fundin~ ~he Arts and ~u|~ur~ [omrni~1ee Pro~rarn.The~~||ovvin~areex~nlp|esoffund~d~~~ivities.
o "Be~t o~ 8ue||~on" ~~ur~| Pr 'ect, "VVa|k into Fire" P 'ect, Heroes' Journey ~cu|pture Pr 'ecL, Roch Oass Pr 'ect, SYV T~en Arts ~~osaic vvork~hop, rnus\c pr 'ects,andpr 'ecLsattheBot~nicGarden
~ [i~y [oun~i| aUo~ated ~~~,OOO for the 8ue|/ton Beoutifu| L~nds~~pe Pro~r~m. The rnaxirnurn avvard for e|i~ib|~ residentia| or c~rnrnerda| properties i~ ~2,OOO and avai|~b|e on a ~rs~served basi~. The pro~rann ~||ovv~ resident~ ~nd cornrn~rci~| propertiesto rnake the)rou~door|an~sc~~)n~rnoreet1rect)veandenvinonrnentaUyfriend|y. ~ The[i~yrec~iveda~4[lOOOGrantfrorn~a|tr~nstoconnp|e~eourLR~P—Lo~~|Ro~d~~fety P|an. ~i~y ~ounci| ~uthorized the use of~he ~r~n~for consu|tin~s~rvic~s vvith ~B8|KE ~o irnp|~rn~nt~he~~n~aYnezV~||eyBio/de~ndPede~tr\~nOutr~a~hPro~rann. ~ Partn~red vviih ~8[A~ ~nd ~ityof~o|van~on the Trai| AU~nrnent Study ~nd ATP Grant A~pUcationforenvironrnent~|desi~noftheSentaYne~Riv~rTr~i|. w Oty vve~ avvarded the R~~iona/ E~r|yAction P|ann~n~ /REAP\ ~ran~ in thc arnount of ~l2G,7~4andLoca/E~r|yActionP|~nnin~(LE/\P)Gr~ntfundin~inth~arnountof~~~,OOO. ~r~ntfundscanbeusedtocov~raUoreportionofth~coststoirnp|ernente|~ctronicp|an revi~m~prep~r~the~O~~Housin~e|ernentupda1~andprepareLionandadop~ionofpneapprovedADUp|ans. ~ The[i~yenter~dintoacontr~~~vvi~h[r~inendAss~ciat~sfortheLandUseandCir~u|ation E|ernentUp~ateandTr~fMcand[ir~u|adonStudy.
~ The[i~yenter~din~oa~on~r~c~vv\thRincon~onsu|t~n~s,|nc.forassistan~evv~htheL~nd U~e~nd[ircu/~tionBernen~(LU~E)upda1e.Th~[)tyoffered~virtu~|pubUcvvorkshopfor theLUCEUpd~tetor~ceivecornrnuniLyinput
m Th~ [ity en1ered into a contracL vvi~h EN~|E Services U~ forthe \nsta||~~\on ofso|ar str~et U~htson|ndusLri~/VVay~nd~entr~|Avenue,so|arpane|s~ttheVV~stevvaterTreatrn~n~ P|ant and P~st of~ce, vv~t~r nneLerup~rades city-vvide, an up~ra~eLo~h~ HVA~systenn a~ ~i~y Ha||, and LEO U~htin~ up~r~des throu~hout Ci~yfaci|ities. The pr 'ect isfundzd throu~hanEquiprn~n~Lea~ePurchas~A~reern~n~inth~arnountof~4,147,947vvitha2Oye~r terrn. Lease payrnents vviU be rn~~e ~nnueUy. The p '~ct is ~xp~cted to re~Uze ener~ycos~~~vin~sofov~r~4rniUionover~Oye~rs.
m ~iLy instaUed security carneras ~t Vi||a~e P~rk RiverVi~vv Park and Oak Perk. vii

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~~`~~~~~~~~~~~~~~
Letter~~~rs~~nm~~s~
~~rt~~~e~r~U~~~~~~e~~~~~~~
~ [ity[ound| approvedthe useofthe c\~yprop~r~/~~ ~O~ Dairy|and Ro~~ ("\~iUernsen Proper~/) for ~ sprcia| "Driv~-|n ~~ovi~" event to be sp~nsored by~he [i~y ~nd the [entr~~ [ost Fi/rn ~oci~~y.
~ ~ity conducted var~ous tours ofthe VViUernsen Proper~/to re~eiv~ cornrnuni~y input for thefuture use of~he proper~/.~~affpres~n~ed poten~ia| usesto ~i~y ~ouncU, and ~ity [ounci| dir~c~ed st~ff~o rnove the exis~in~ Bu~Uton Libnary |oc~~ion into a portion ofthe VViUernsen residen~e and the rernainin~ portion ofth~ residence to b~ u~ed for revenue ~eneradn~ purposes. These uses areto be discusse~ in future ~ity[ounci| rn~etin~~. ~ [onstruction on rn 'or cap\ta| p 'ects cont~nu~d such ~s~ o [ornp|etion of Pha~~ l ~nd Z ofthe Storrn Drain |n|~t and ~~tch 8a~in Retro~~ P 'eci.
o [on~~ruciion of p~rkin~ |ot at Avenue of F|a~~K~~di~n ~ perAvenue of F|a~~ ~peci~cP|annearedcornp<etion.
o Road~~~inten~n~eP 'ectFYZOl9-2Ovva~cornp|~~ed.
o Road ~~ainten~nce P 'ect FY ~O~O-~l b~~an and vviU be cornp|~~ed in FY~O~l- ~~.
o ~~c~~urrey Road VVidenin~ Ri~ht'o~VVayacquisbion is in pro~re~s. o VV~~erTre~~rnen~P|an~Boost~rPovverReU~bi|~vp '~ctisunderconstruc~ion. o VV~~erDistributionSystenn|rnprovern~ntsareund~rconsLruction. o VV~stevv~~erTre~1rn~ntPi~nt\rnprovernenis~reundercons~ruct\on. o ~ity-vvid~vv~terrneterup~rades~reon~oin~asp~rtoftheEN~|EPr 'ec~. w K4s~orPriv~teO~v~/oprn~ntpr 'ectsvver~approveddurin~the~~ca|ye~r. o [reekside ViU~~e Pr 'ec± |oc~~ed vvithin theAvenue ofRa~s ~ped~c P|an. Th~ rn~x~dus~pr 'ectindudesaihre~-s~orybuUd\n~vv\thapproxirn~~~~yl[lOOOsfmf cornrnerci~/ ~pa~e on the~rst~o~r and ~4 ~parLrn~nt uniLs on the second end third~oor~.Arn~nitiesinc|udea~r~und|eve|tovvnp/az~,outd~orp~tios,~tnes~ cen~e~bik~roorn,dubroornandaroofdeck.
o P{~nnin~[ornrnissi~n~pproveda~ond\t\on~(us~perrni~Forthe[aUforniaTacos R~staurant,8arandSrnaU'Ba~chDistiUery.

Theuseof~[apba/|rnprovern~nLFundnoton|y~rackscostsbut~uide~the[~vinLhep|ennin~~ sch~duUn~ ~nd bud~~tin~ of c~pi~ai irnprovern~nt p 'e~~s. The ~ity has cornp|eted ~h~ deve|oprnentof~ Fiv~-year~apita| |rnprovernen~ Man ("C|P"\ and has inc{uded it in its Biennia! Bud~~t. Thc Oty'w~ide ~~pi~~| irnprovern~ntfund surnrnarizes e~ch p 'ect by "sLar~ date" and "~nd da~e" The ~|P is updated ~nnuaUy~nd approved by ~oundi The OP i~ th~ b|ueprintfor re~ourc~inves~rnenistoirnproveandreh~bUi~a~eexistin~pubUcinfr~s~rucÍurevvhUe~|somak\n~ tar~eted investrnentsth~t aU~n vvi~h the ~i~/~ exp~nsion p|~ns. |ntota|,the ~i~v'~ ~O~O-22 OP bud~et vvas about ~O.7 ~~iUion and re~ects a 4O.O percent increas~ ~orn ZOlB-~O. The [|P indudesa|~r~einvestrnen~inup~radestocner~y~fMdentequipnnen~~nst~U~o|~rpane|sa~~he VV~st~vvaterTre~~rnen~P(ant~ndPostOf~ce,instaU~o(~~streetU~hón~et~entr~(Avenue,and viii

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~,~~~~~~~~~~~~~hJ
~~tt~r~~~rs~~nn~ts~
~~rt~e~~sr~~~~~.~~~~C~~~~~
|ndus1ri~|VV~y,andup~radeaUvv~terrneters~oradiornetens.TheconstructionoftheAvenueof F|~~~~~edi~nZparkin~|o~con~~ructionphas~vves~ddedtotheOPUs~asa~bv~ounci|pri~rity andcornp|etedacoup|eofrnonthsafter~he~~~~|ye~r~nd.
m —~~c~~urnayRoadyVid~nin~~AvenueoftheF|a~~ParkandRide
~~ructure and Bu~~he|ter irnprovernents are stiU in pro~ressvvith incrernenLa| pro~ress assistin~vvithtr~f~cMovv.Thern 'orityoffundin~isthrou~hthe~ityGenena/Fund. ~ Annu~|ro~drnaintenancep 'ects Ph~se
U| Hi~hvvay Z4B Pedestrian ~ro~sin~~nd 5tree~and Pavernent nehabi|itedon ~ctivities vvene oznnp|eted. The rn 'orityof~his fundin~ isthrou~h W1easure A ~nd G~sTaxvvith ~on1ractor r~irn~ursern~nt for Phas~ ||| Hi~hvv~y ~4G Pedes~rian ~rossin~. Road &4aintenance p 'ects are ~/so funded vvith r~venue frorn ihe Ro~d Repair ~nd 1,ZO27.
w — VVater Faci|~ies |rnprovernen~~ VVater
Tre~LrnenL P|an~ Purnp 800st~r ReUabiUty P 'ect 8~ckvvash Redarnation, Recyc|ed ~ — ~evv~r Une Rep|acernent ~nd VVastevvater
~ —AvenueofF|a~~~~~dien~|nnprovernen~SantaYnez
River Tr~i|, ~~v H~U Ern~r~ency ~enerator/E|ectrice| R~p|~cernen~ River Vie~ Park Baske~baU[ourLResu~acin~and|ndu~~ri~|VVay~~reetU~hts.
f|~~/~P~~k~L |~F~~P~AT|(~hJ
The[òvnnaintainsbud~etarycon~ro|sthroueh~he[hv[ouncU'~adopt~onofab~enn\a\b~|~nced bud~etbyreso|udon.Th~O~yrnaintain~ab~/an~edbud~etvvhererevenueiseque|toorexceeds expend\turesfor ~~tyoper~~ions. The bud~~~ed arnounts approved in ~he b\enni~{ bud~et ~re recorded in th~ [i~/s accoundn~ sy~tern for each fund. The bud~e~ary |eve| of oontro| is rnain~a\ned a~the fund |evei Fund |eve| nnon\torin~ is per~~rnned rnonth|y. {}uarter|y reports~o ~oun~i|inc|udebud~etversusac~ua|~rendena|ysis.
ix

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~][~~~~~~~~~~~~hJ
~etter~~~r~~~n~~t~/
The [bv ~~~n~~er has the author~vLo ~ransfer ~ppropriations betvveen funds, but chan~es úz appropri~~ions or transfens betvveen funds rnust be approved by [ity [ouncii Bud~~~ ~rnendrnentsaresubnni\Íedt~[ounci{vvhen~fund'~actu~|expendituresareexpectedtoex~eed bud~et.Unspen~appropri~~ions~ttheendofthe~sca|year|ap~e,vviththeex~~ptionofcapi1a| irnprovernen~ p '~ctsvvhi~h are usua|/ycarried fomvard intothe next~sca| year.

The~~vcon~inues~orneethsresponsibi}òv~~rsound~nanda}rn~na~ernent~sd~rnonstr~ted by~hest~ternentsan~schedu|esinc|ud~dinthe~nanda|sec~ionof~hisreport. ~~~~~~~/nw~~~~/eni~~/&c«
Th~ ~ity invest~ unmes~rved id>e ca~h in ord~rto ~nhance the econornic s~~~us ofthe (]tyvvhi|e prot~c1in~~spoo|edc~sh.The[i~/~|nvestrn~ntPoU~yis~oexercis~prudent'ud~rnent~ndcare vvhen inve~~in~. The cri~eria for ~e|ectin~ inves~rnents ~nd the grder of priori~y are ~efety, Liqu~dity and Yie|d. The ~ity ~LÍernp~s to obtain the hi~hest yi~\d ob~~inab|e as |on~ as investrnentsrneet~hecri~eriaestab|ish~dfors~f~~v~ndUquidity.TheStaternentof|nves~rneni PoU~yisupda~~~~nnuaUy~ndapprovedbytheOty[ouncU.

TheGovernrncntFin~nceO~icersAssociationofth~Un~e~~L~tesand[~n~d~(~FOA)e~arded iis~erti~c~t~ofAchievernentforEx~eUenceinFinancie|Reportin~toLhe~iLyfor~sA~FRfor~he ~sca| year end~d Jun~ ~[l 2O~O. This rnark~ the ~~ oznse~u~iv~ ye~rth~ City ha~ received ~hi~ presti~iousavvand. Toqua/ifvforthe~erti~~ateofAchi~vemnen~th~~ov~rnrnent~|~ntityrnust pubU~h an e~sUy read~b~e and efMóent|yor~~n\z~d A[FR, the cont~ntsofvvh~ch conforrn to pr~~r~rn ~~~nd~rd~. Su~h ~epor~ rnusts~d~fva~cVuntin~ princip|~s~~nera||ya~~~p~ed in ~he Uniied ~tatesof,~rn~ri~a, asvve|| ~s a|| ~pp|icab|e |e~a| requir~rnent~.

A~er~i~ce~eofAchievernen~isva|idforon|yoneyear.The[bvbeUevesthisA~FRcontinuesLo conforrntoth~~erLi~ca~eofAzhievennentPro~narnrequirern~ntsendwiUb~~ubrni~~in~~~ot~~ ~FOAforcon~ideradonoftheannua|~vvard.

Thepreparationof~heA[FRrep~e~entsthe~u|rnin~~ionof~concer~edtearnef~~rth«theendre staff ~f th~ Finance D~p~rtrneni ~~any rn~rnber~ of the D~p~rtrnent dernonstnaLed cornnnend~b~ededica~ionand|on~daysoffocused~~t~nóontoproduce~h\sdocurnent. x

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~~~,~~~~~~~~~~~~~
~~tter~~Tr~n~nn~t~~
|n add~ion, ~a~ in aU ~~ depa~men~ ~hou/d be ~~~nized. ~~ [~ a|so ~~~izes the [)nb~ha|fofth~entireFin~nc~staff vve~xpressour~ppnecietiontoth~~~ay~rand~hv[ound| for providin~ poU~ydir~~~ion ~nd support for ~chievin~~nenda| ~xceUence in ~U ~spec~s of Onanda|repor~in~.

Re~pe~1fu|k/Subrnb~ed,
'
~hanne|Zarnora
Financ~Director
xi

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City of Buellton, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Organization Chart

CITY OF BUELLTON
Organizational Chart
Electorate
:.x
9 Y Plannin Cit C~ .:.... x'::'::~..~x ::':.~~: :: ~-"~~:.•;~~~~.`~~:~`` x..>.X.::....:>.:.:>.- X .:T.::. Commission Council Attort~éy ;~',ü~~.<~~ >....,....,.X ..X. ~.....>.e .. './: rIS. ".1:. ~.. "n ^:J...!:.':f..v •w^!.':.T.I:."i:. y...F c qty
Manager
Planning Finance Public Works City Clerk/ Recreation Engineering Fire Police Director Director Director uman Resourc Supervisor Dept. Dept. Dept.

Director
-Assistant Planner -Accounting Specialist - ~ ead Fie[dworker - Recreation Center Coordinator - StaffiAssistanti -Revenue Specialist - Journeyman Fieidworker -Youth Recreation Coordinator Planning Technician -Accounting Technician - Fieldworker I -Parks Foreman
- Facilities Maintenance
In House Contracted
XII

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CITY COUNCIL
➢ Holly Sierra, Mayor
➢ Sohn Sanchez, Vice Mayor
➢ Ed Andrisek, City Council Member
➢ Dave King, City Council Member
➢ Elysia Lewis, City Council Member

CITY OFFICALS
Scott Wolfe, City Manager
➢ Andrea Keefer, Planning Director
➢ Shannel Zamora, Finance Director
➢ Rose Hess, Public Works Director/ City Engineer
➢ Linda Reid, City Clerk/Human Resources Director
➢ Kyle Abello, Recreation Supervisor

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City of Buellton, California
Annual Comprehensive Financial Report
For the year ended tune 30, 2021
Certificate of Achievement for Excellence in Financial Reporting •►
~~i~~t~c.~rt~t~~~.~r~t ~~í~~.~r3t.°~.• t )t`~ttit~~r~~ ,~~~~~~c•í~~tí~~t~ ~~`t~'~►c.'~t~.'c~ tcr
~'iti~' ~~ ~~t~c~~~tt~t~
.
~+~~1~#~~~~~t~i~~
E~~r íts ~:`~.~t~~~r~.~h~•~~~íl~~.~ r~nna~ai
~~~íii:~rt~.~í~xi ~~c:~~.~}t~t
~~~r t~~~~ ~= i~e~~1 ~'~#~~~~ ~:t~~fc~~
1car~cy ~(~R ?ti?t~
C~`.~~~ . l~` .~
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~~.tL~~ ~iti` ~.* ~~ír~~4 t~~~~ C ~~t ~
xiv

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~~~~~~1~~ ~~~~~1Y

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Moss, Levy & Hartzheim LLP
Certified Public Accountants

INDEPENDENT AUDITORS' REPORT
City Council of the City of Buellton
Buellton, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Buellton, as of and for the fiscal year ended dune 30, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

Management's Responsibility for• the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles genera! accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficie~~t a ► ~d app~-op~~iate to provide a basis fur our audit opinions.

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Buellton, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 14 to the financial statements, in January 2020, the World Health Organization has declared COVID-19 to constitute a "Public Health Emergency of International Concern." Given the uncertainty of the situation, the duration of any financial impact cannot be reasonably estimated at this time. Our opinion is not modified with respect to this matter.

Change in Accountíng Principles
As discussed in Note 1 to the basic financial statements effective July 1, 2020, the City of Buellton adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter. 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455Te[805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS • CULVER CITY •SANTA MARIA

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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 21, the budgetary information on pages 61 through 62, the schedule of proportionate share of net pension liability on page 63, the schedule of pension contributions on page 64, the schedule of changes in OPEB liability and related ratios on page 65, and the schedule of OPEB contributions on page 66, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries about the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Buellton’s basic financial statements. The introductory section, statistical section, major capital project fund schedule, and combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The major capital project fund schedule and combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules, nonmajor funds budgetary comparison schedules, and the fiduciary funds statement of changes in assets and liabilities are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 27, 2022, on our consideration of the City of Buellton’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Maria, California
January 27, 2022
2

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
3 The management’s discussion and analysis (MD&A) section provides a narrative overview and analysis of the financial activities of the City of Buellton (City) for the fiscal year ended June 30, 2021. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
Key financial highlights for FY 2020-21, are as follows:
 As of the close of the fiscal year, the City’s total net position increased by $1,683,104 or 4.0%, from the previous fiscal year. The increase is primarily due to the increase in capital assets and deferred outflow of resources in both the government-type activities and business-type activities. A summary of transactions reflecting Net Position is found on page 7 of this report.  On June 30, 2021, the City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $43,545,945 (net position). Of this amount, $12,867,632 (unrestricted net position) may be used to meet the government’s ongoing obligations to its citizens and creditors.

The remaining amount includes $28,731,275 for net investment in capital assets and $1,947,038 for restricted net position.
 The City of Buellton’s governmental funds reported a combined ending fund balance of $11,512,157: an increase of $1,655,472 or 16.8%, in comparison with the prior fiscal year fund balance. $8,114,612 (70.5%) of the fund balance is available for spending at the government’s discretion (unassigned fund balance).
 The City’s General Fund unrestricted fund balance ended the fiscal year at $8,217,772. Management’s suggested minimum reserve goal is to maintain 25% of budgeted operating expenditures, or a “nonspendable” fund balance figure of $1,905,666. The unassigned fund balance is in substantial excess of the suggested minimum reserve: $6,312,106 is “spendable”.  The primary government’s program revenues decreased by $491,280 or 8.0%, in comparison with the prior fiscal year. The decrease was driven by a $147,834 increase in charges for services and a decrease of $639,114 in operating grants and contributions. The total primary government’s expenses increased by $623,359, nearly 5.4%.
 The City’s net pension liability increased from $2,255,555 to $2,411,265, which is approximately a 6.9% increase from the prior year. As of the most current Annual Valuation Report (June 30, 2021), the City’s defined benefit plan’s funding ratios were 93.7% for the PEPRA Plan and 73.8% for the Classic Plan.  The City reported its OPEB liability per GASB 75. The net OPEB liability for fiscal year ended June 30, 2021 increased from $2,332,487 to $2,649,289 which is a 13.6% increase from the prior year, and the percentage of covered payroll was 192.62%.

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
4 OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT This Annual Comprehensive Financial Report is in three major parts:
1) Introductory section, which includes general information; 2) Financial section, which includes the Management’s Discussion and Analysis (current section), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements along with the notes to these financial statements, and Combining and Individual Fund Financial Statements and Schedules.
3) Statistical section, which includes detailed information as a context for understanding what the information in the financial statements, and footnotes says about the City's overall financial health.

The Basic Financial Statements
The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.

The Government-wide Financial Statements
The Government-wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with emphasis on measuring net revenues or expenses of each of the City’s programs. The Statement of Activities explains in detail the change in Net Position for the year.

All of the City’s activities are grouped into Governmental Activities and Business-type activities, as explained below. All the amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole.
♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, culture and leisure, public safety, and public works. These services are supported by general City revenues such as taxes, state grants and by specific program revenues such as developer fees. ♦ Business-type activities – All of the City’s enterprise activities are reported here, including Water and Wastewater. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
5 Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of the Governmental Fund Financial Statements is narrower than that of the Governmentwide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statement. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules present the detail of these nonmajor funds. Major funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of the City’s activities.

For the fiscal year ended June 30, 2021, the City’s major funds are as follows:

GOVERNMENTAL FUNDS:
 General Fund
 Transportation Planning Special Revenue Fund
 Capital Improvement Fund
PROPRIETARY FUNDS:
 Water Enterprise Fund
 Wastewater Enterprise Fund
Proprietary funds. The City maintains Enterprise-type proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the Government-wide Financial Statements. The City uses enterprise funds to account for Water and Wastewater operations. Proprietary funds provide the same type of information as the Government-wide Financial Statements, only in more detail.

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
6 Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found on pages 36-60 of this report.

Combining and Individual Fund Financial Statements and Schedules The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements can be found on pages 72-75 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, Net Position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflow of resources exceeded liabilities and deferred inflows of resources by $43,545,945 for the period ending June 30, 2021, a 4.0 percent increase from the prior year.

The largest portion (66.0 percent) of the City’s net position reflects its investment of $28.7 million in capital assets (land, building and improvements, equipment and infrastructure, net of accumulated depreciation). The City uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending.

About $1.9 million (4.5 percent) of the City’s net position represents resources that are subject to external restrictions on how they may be expended. These restrictions include Housing, Streets and Roads, Transportation Planning, and Capital Expansion.

About $12.9 million of the net position (29.5 percent) is unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors. Of this amount, $6.0 million is held by the business-type activities and $6.9 million is held by the governmental activities.

The statement of activities shows how the City’s net position changed during fiscal year 2020-21 compared to the prior fiscal year. The City’s net position increased overall by about $1.7 million during the fiscal year, which shows the City’s financial health is better than the previous year.

The tables on the following pages present a summary of net changes of the City’s net position as of June 30, 2021, and June 30, 2020.

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
7 The Summary of Net Position as of June 30, 2021, and 2020, follows:

Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Current and other assets $ 13,072,965 $ 9,317,124 $ 22,390,089 $ 10,668,318 $ 6,602,271 $ 17,270,589 Noncurrent assets 150,000 150,000 - 150,000 150,000 - Capital assets,net 24,869,112 6,290,309 31,159,421 24,103,842 5,134,998 29,238,840 Total assets 38,092,077 15,607,433 53,699,510 34,922,160 11,737,269 46,659,429 Deferred outflows of resources 767,113 251,696 1,018,809 701,202 281,518 982,720 Total assets and deferred
outflows of resources 38,859,190 15,859,129 54,718,319 35,623,362 12,018,787 47,642,149 Current and other liabilities 1,571,337 194,068 1,765,405 811,633 98,830 910,463 Noncurrent liabilities 4,724,096 4,632,636 9,356,732 3,354,197 1,373,471 4,727,668 Total liabilities 6,295,433 4,826,704 11,122,137 4,165,830 1,472,301 5,638,131 Deferred inflows of resources 38,909 11,328 50,237 101,608 39,569 141,177 Total liabilities and deferred inflow
of resources 6,334,342 4,838,032 11,172,374 4,267,438 1,511,870 5,779,308 Net Position:

Net investment in capital assets 23,695,943 5,035,332 28,731,275 24,090,300 5,134,998 29,225,298 Restricted 1,947,038 1,947,038 - 1,472,682 306,934 1,779,616 Unrestricted 6,881,867 5,985,765 12,867,632 5,792,942 5,064,985 10,857,927 Total net position $ 32,524,848 $ 11,021,097 $ 43,545,945 $ 31,355,924 $ 10,506,917 $ 41,862,841 Summary of Net Position
2021 2020

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
8 Provided below is a summary of changes in Net Position for the fiscal years ended June 30, 2021, and 2020.

Govern- Business- Govern- Businessmental type mental type Activities Activities Total Activities Activities Total Revenues:

Program revenues:

Charges for services $ 180,216 $ 3,905,375 $ 4,085,591 $ 143,841 $ 3,793,916 $ 3,937,757 Grants and contributions:

Operating 1,557,864 - 1,557,864 2,196,978 - 2,196,978
Capital - - - - - - General revenues:

Secured and unsecured - property taxes 1,670,306 - 1,670,306 1,599,958 - 1,599,958 Sales and use tax 2,934,332 - 2,934,332 2,536,781 - 2,536,781 Transient lodging tax 3,020,078 - 3,020,078 2,548,842 - 2,548,842 Franchise taxes 330,044 - 330,044 299,751 - 299,751
Other taxes 37,456 - 37,456 48,143 - 48,143
Fines and forfeitures 8,654 - 8,654 15,972 - 15,972
Investment income 124,175 20,773 144,948 465,400 57,661 523,061 Other general revenues 27,799 - 27,799 8,210 - 8,210
Total revenues 9,890,924 3,926,148 13,817,072 9,863,876 3,851,577 13,715,453 Expenses:

Governmental activities:

General government 2,004,116 - 2,004,116 2,339,213 - 2,339,213 Community development 899,797 - 899,797 776,855 - 776,855 Culture and leisure 967,345 - 967,345 839,109 - 839,109 Public safety 2,349,126 - 2,349,126 2,207,959 - 2,207,959 Public works 2,489,793 - 2,489,793 1,779,746 - 1,779,746 Interest on long term debt 11,063 - 11,063 390 - 390
Business-type activities:

Water - 2,250,890 2,250,890 - 2,317,545 2,317,545
Sewer - 1,161,838 1,161,838 - 1,249,792 1,249,792
Total expenses 8,721,240 3,412,728 12,133,968 7,943,272 3,567,337 11,510,609 1,169,684 513,420 1,683,104 1,920,604 284,240 2,204,844 Transfers (760) 760 - (68) 68 - Change in net position 1,168,924 514,180 1,683,104 1,920,536 284,308 2,204,844 Net position:

Beginning of year 31,355,924 10,506,917 41,862,841 29,525,918 10,222,609 39,748,527 Adjustments - - - (90,530) - (90,530)
Beginning of year, as adjusted 31,355,924 10,506,917 41,862,841 29,435,388 10,222,609 39,657,997 End of year $ 32,524,848 $ 11,021,097 $ 43,545,945 $ 31,355,924 $ 10,506,917 $ 41,862,841 Changes in Net Position
2021 2020
Excess of revenue over expenses before
transfers

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
9 Revenues
The City’s total revenue for governmental and business-type activities was $13,817,072 for the fiscal year ended June 30, 2021. Total revenue from government-type activities were $9,890,924. Approximately 92.8% or $9,182,580 of the City’s key governmental revenue is generated from four major sources: Sales, property, transient occupancy taxes, and grants and contributions.

The following discusses variances in key revenues from the prior fiscal year:

1. Sales and Use Taxes – Sales tax revenue totaled $2,934,332 for an increase of $397,551, or 15.67% gain from the previous fiscal year. The Autos and Transportation Industry group continues to thrive, posting a 21 percent increase from the prior fiscal year. The Business and Industry group experienced a 29 percent increase due to a boost in sales from garden/agricultural supplies and wineries. The City’s sales tax pool allocation increased 26 percent. The continuing growth is attributed to receipts due to the Wayfair decision that required out of state companies to collect sales tax coupled with demand for online purchases, a change in buying habits during the pandemic.

2. Secured and Unsecured Property Taxes – Property tax revenues recorded in the governmental fund totaled $1,670,306 for an increase of $70,348 or 4.4 percent. Rising property values, commercial and residential growth attributed to the increase in property taxes. The City’s ongoing share of property tax is expected to increase at a steady rate as the assessed property values continue to rise and as new development continues to progress.

3. Transient Occupancy Tax – Governmental Activities Operating – This revenue source is a major component and top revenue source of the City’s General Fund. Transient Occupancy Tax (TOT) totaled $3,020,078, an increase of $471,236 or an 18.49% improvement. The Hotel Industry experienced decreased occupancy rates beginning in March 2020 when the “Stay at Home” order was put in place. This resulted in drastic revenue loss that continued until the end of June 2021 when the “Stay at Home” order was lifted. The occupancy rates in April through June 2020 were 15%, 21%, and 48% respectively compared to 69%, 62%, and 79% for the same period the prior year.

The occupany rates for the same period in FY 2020-21 were 73%, 69%, and 81%, exceeding prepandemic rates. Fortunately, TOT revenue recovered much quicker than anticipated. TOT occupancy rates exceeded and TOT revenue was similar to pre-pandemic revenue of $3.1 million.

4. Grants and Contributions – Governmental and Business-Type Activities Operating – Grants continue to be a consistent source of revenue for public works uses under Business and Governmental-type activities. Operating grants decreased by $639,114 or 29.1 percent. This was mainly due to the timing of street, road, and community enhancement operating grants for maintenance and operations renewed in the current year. Furthermore, the City received $44,216 in CARES Act Funding to cover eligible expenditures in response to the COVID-19 pandemic.

Expenses
Governmental and business-type activity expenses of the City totaled $12,133,968 for the year.

Governmental activity expenses totaled $8,721,240, or about 71.9% of total expenses. Business-type activities incurred $3,412,728 in expenses during the fiscal year, or about 28.1% of total expenses.

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
10 Governmental Activities
The table on below shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. Public works total cost of $2,489,793 represents about 28.5% of total governmental activities expenses, the largest single expense category for governmental activities. The total cost of services and the net cost of services for the fiscal years ended June 30, 2021, and 2020, are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 2,004,116 $ $ 1,959,900 $ 2,339,213 $ 2,316,725 Community development 899,797 894,797 776,855 771,855
Culture and leisure 967,345 787,129 839,109 695,268
Public safety 2,349,126 2,192,362 2,207,959 2,052,163
Public works 2,489,793 1,137,909 1,779,746 (233,948)
Interest of long-term debt 11,063 11,063 390 390
Total $ 8,721,240 $ 6,983,160 $ 7,943,272 $ 5,602,453
2021 2020
23%
10%
11%
27%
29%

0.127%
Governmental Activities by Program
Fiscal Year Ended June 30, 2021
General government
Community development
Culture and leisure
Public safety
Public works
Int erest of long-term debt

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
11 Revenues by source for the fiscal years ended June 30, 2021, and 2020, are as follows:

Charges for services

1.82%
Operating grants

15.75%
Secured and unsecured
property taxes

16.89% Sales and use tax

29.67%
Transient lodging tax

30.54%
Franchise taxes

3.34%
Other taxes

0.38%
Investment Income

1.26%
Fines & Forfeitures

0.09%
Other general revenues

0.27%
Revenues by Source - Governmental Activities
2021
Charges for services

1.46%
Operating grants

22.27%
Secured and unsecured
property taxes

16.22%
Sales and use tax

25.72%
Transient lodging tax

25.84%
Franchise taxes

3.04%
Other taxes

0.49%
Investment Income

4.72%
Fines & Forfeitures

0.16%
Other general revenues

0.23%
Revenues by Source - Governmental Activities
2020

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
12 Business-type activities
Business-type activities increased the City’s Net Position to $11,021,097. The City has two business-type activities: Water and Wastewater. Water accounts for 68.7 percent of total business-type activity revenue, and Wastewater accounts for 31.3 percent.

Total business-type revenues for the Fiscal Year ended June 30, 2021 were $3,905,375, an increase of $111,459 from the prior year. Charges for services remained steady with an increase of $96,606 (2.5%) from the prior year. The increase for charges for current services for the Water Fund was $84,303 (3.3%), and the increase for the Wastewater Fund was $12,303 (1.0%). The revenue increases in the Water and Wastewater Funds was a result of more water consumption due to water usage customers staying at home to reduce the spread of COVID-19.

Other operating revenue increased by $14,853 (469.9%). The increase was attributed to revenue from an insurance refund for a City vehicle that was deemed a total loss. Receipts of Water and Wastewater Connection Fees in previous years came from new housing development. There was no new development during FY 2020-21. Business-type interest income decreased by $36,888 (63.9%) from the prior year. The decrease was due to the low interest earning in the Local Agency Investment Fund (LAIF). The LAIF interest rate on June 30, 2021 was 0.33 percent compared to 1.36 percent the prior year. There was a minimal transfer into the Water and Wastewater Funds from the General Fund. The $760 transfer was to purchase masks and sanitizing products using funds from the CARES Act.

Expenses of the business-type activities for the Fiscal Year ended June 30, 2021, totaled $3,361,146, a decrease of $206,191 (-5.8%) from the prior year. Of the total decrease in expenses from the prior year, Water Fund expenses decreased $92,452 (-4.0%), and Wastewater Fund expenses decreased $113,739 (-9.1%).

Personnel services decreased $265,498 (30.4%) from the previous fiscal year. The decrease was mainly due to GASB 68 and GASB 75 adjustments for CalPERS retirement employer contributions and Other PostEmployment Benefits (OPEB) adjustments. Actual employee salary and benefit amounts remained consistent with prior year amounts.

Operations and maintenance expenses increased $52,106 (2.3%) from the previous year. The majority of the increase is due to repairs of a water meter line break. Depreciation expense continues to be consistent with prior years. The $42,118 interest expense recognized is for the interest expense on the ENGIE U.S.

Inc. capital lease for solar and energy improvements.

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
13 $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Water Wastewater
Program revenues
Operating expenses
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Water Wastewater
Program revenues
Operating expenses
The expenses and program revenues summaries for the business-type activities for the fiscal years ended June 30, 2021, and 2020, are as follows:

Expenses and Program Revenues
Business-type Activities
2020
Expenses and Program Revenues
Business-type Activities
2021

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
14 The revenues by source for the business-type activities for the fiscal years ended June 30, 2021, and 2020, are as follows:

Charges for services

99.01%
Operating and
capital grants and
contributions 0.46%
Investment income

0.53%
Revenues by Source - Business-type Activities
2021
Charges for services

98.42%
Operating and
capital grants and
contributions 0.08%
Investment income

1.50%
Revenues by Source - Business-type Activities
2020

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
15 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The City of Buellton uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide financial statements.

Governmental funds
The focus of the City of Buellton's governmental funds is to provide information on near term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Buellton's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of June 30, 2021, the City of Buellton's governmental funds reported combined ending fund balances of $11,512,157, an increase of $1,655,472 (16.8%) in comparison with the prior fiscal year. The majority of the increase is in the General Fund with revenue from taxes increasing $958,741 (13.6%) from the prior year. Revenue from TOT and sales tax recovered at a faster pace than anticipated. In addition, the General Fund received $829,589 in capital lease proceeds for the solar and energy project.

Approximately 70.5 percent of this total amount ($8,114,612) constitutes unassigned fund balance. The remainder of the fund balance is “non-spendable,” or restricted to indicate that it is not available for new spending because it has already been committed to fund amounts prepaid for the following fiscal year ($111,901) and restricted by other parties for a specific purpose ($3,285,644).

The General Fund is the chief operating fund of the City of Buellton. The total fund balance in the General Fund is $9,668,279 of which $8,217,772 is shown as “unassigned.” As a measure of liquidity, both unassigned fund balance and total fund balances can be compared to total fund expenditures. Unassigned fund balance represents 119.3% of total General Fund expenditures of $6,886,799. The City Council policy goal is to have reserves of at least 50 percent of budgeted operating expenditures, which means the City’s unrestricted fund balance is above policy goal.

The fund balance of the City of Buellton's General Fund increased by $1,181,022 during the current fiscal year. Expenditures decreased by $2,147,503 (23.8%) compared to the prior year. Most of the decrease is attributed to the one-time expenditure the previous year in the amount of $2,001,008 for the purchase of 202 Dairyland Road (Willemsen Property). Other one-time expenditures attributed to the decrease, such as contributions to the Buellton Senior Center’s expanded Meals and Wheels Program and other COVID-19 response expenditures during the previous year.

Transfers out of the General Fund increased by $188,175 (11.1%) compared to the prior year. These transfers are for Capital Improvement Projects (CIPs) and account for $1,887,459 of General Fund expenditures. The most significant CIPs expenditures as of June 30, 2021 are:
 $1,342,130 for the Avenue of Flags Median 2 Improvements #092-215  $337,960 for the General Fund portion of the ENGIE Solar and Energy Project #092-219

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
16  $154,326 for the completion of Stage 2 of the Storm Drain Inlet and Catch Basin Retrofit Improvement Project #092-314
General Fund revenue increased by $216,051 (2.4%). The increase was mainly attributed to the following:
 $958,741 increases in revenue from taxes as a result of a strong recovery in TOT and Sales Tax revenue that was lost the previous year during the start of the COVID-19 pandemic. About 90 percent of the increase in revenue from taxes is attributed to TOT and sales tax revenue. The City lost about $565,000 in TOT revenue from March 2020 to June 2020 compared to the same period in 2019. At the end of FY 2020-21, TOT revenue was $471,236 (18.49%) higher compared to FY 2019-20. In addition, sales tax revenue was $397,551 (15.67%) higher compared to FY 2019-20.  Charges for current services increased $36,285 as a result of activities from the Buellton Recreation Center and Park Reservation Fees. After the June 15, 2021 reopening date, the Buellton Recreation Program was able to offer more programs and increase participant capacity.

In addition, more park reservations were utilized. The Buellton Recreation Program had a successful Summer Program and was able to recover from loss of revenue from the prior fiscal year. The City lost about $49,740 in revenue from charges for current services in FY 2019-20. By the end of FY 2020-21 it had recovered $36,285.
 Use of Money and Property revenue decreased by $176,390 from the previous fiscal year. The City invests the majority of idle money into LAIF. With low interest rates during the year, the City earned less than 1 percent quarterly. The LAIF interest rate on June 30, 2021 was 0.33 percent compared to 1.36 percent the prior year.
 Intergovernmental revenue decreased by $619,046. During the prior fiscal year, the City received a one-time reimbursement of $615,439 for the construction of a pedestrian crossing at Sycamore and Highway 246. Reoccurring annual intergovernmental revenue is received for the COPS Grant, Beverage Container Grant, Motor Vehicle in Lieu tax, and Motor Vehicle License Fee Compensation.

Proprietary funds
The City of Buellton's proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail.

Unrestricted Net Position of the Water Fund at the end of the fiscal year amounted to $4,296,253 and those for the Wastewater Fund amounted to $1,689,512. The total change in unrestricted Net Position for both funds was $580,122 and $340,658 respectively. The overall change in net position is primarily attributable to capital lease proceeds and increased revenue from water consumption and wastewater usage.

GENERAL FUND BUDGETARY HIGHLIGHTS
In FY 2020-21, appropriation changes between the original and final budgets amounted to a decrease of $92,227 in the change in fund balance. The General Fund exceeded revenue projections while

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
17 expenditures were within appropriations. Historically, the City has not expended all appropriations and does not complete all budgeted capital projects, which create budget savings. Overall, revenue exceeded expenditures by $2,238,892. The actual net increase in Fund Balance of $1,181,022 includes $829,589 in proceeds from the capital lease that will be used for an energy saving and solar project. Following is a summary of General Fund Budget variances for the period ending June 30, 2021.

The City adopted an amended FY 2020-21 Budget that identifies changes to City appropriations in response to the economic conditions that have been heavily influenced by the COVID-19 pandemic. The COVID-19 pandemic forced the City to adjust down projected revenues to reflect the loss of transient occupancy tax, sales tax revenue, and revenue from the Buellton Recreation Programs. Because the State of California was still under the Stay-At-Home Order, these revenue projections were kept conservative due to economic uncertainty and were based on a steady recovery. Fortunately for the City, sales tax revenue, transient occupancy tax and revenue generated by the Buellton Recreation Program exceeded budget projections.

The City received approximately $1.30 million more revenue than conservative estimates. The City had projected $2,216,000 in sales tax revenue, accounting for potential revenue loss from the Stay-at-Home Order, a 12 percent loss in revenue compared to FY 2019-20 actuals. Instead, the City received $718,332 more than the revised sales tax revenue projection due to strong revenue streams in Auto Sales and the Budgeted Amounts Actual Variance from Revenues: Original Budget Final Budget Amounts Final Budget Taxes $ 6,731,692 $ 6,731,692 $ 7,992,216 $ 1,260,524 Licenses, Permits, Fees 9,540 9,540 13,620 4,080
Intergovernmental 707,841 791,841 785,145 (6,696)
Charges for Services 105,600 105,600 180,126 74,526
Fines and forfeitures 10,300 10,300 8,654 (1,646)
Use of money and property 162,907 162,907 118,131 (44,776) Other revenues 8,000 15,857 27,799 11,942 Total Revenues 7,735,880 7,827,737 9,125,691 1,297,954
Expenditures: General Government 1,919,116 1,919,116 1,800,010 119,106 Community Development 630,496 659,656 540,225 119,431 Cultural and leisure 837,629 851,756 804,144 47,612 Public Safety 2,364,720 2,364,720 2,346,966 17,754 Public Works 1,640,119 1,744,834 1,361,108 383,726 Capital Outlay 46,500 82,582 25,890 56,692 Debt Service: Principal - - 7,922 (7,922) Interest - - 534 (534)
Total Expenditures # 7,622,664 7,438,580 6,886,799 735,865 Excess of Revenues over(under
expenditures) 297,300 205,073 2,238,892 2,033,819
Other Financing Sources:

Proceeds from capital lease - 829,590 829,589 (1) Transfers Out (2,603,610) (3,433,200) (1,887,459) (1,545,741) Total other financing sources (2,603,610) (2,603,610) (1,057,870) 1,545,740 Net change in Fund Balance $ (2,306,310) $ (2,398,537) $ 1,181,022 $ 3,579,559

SUMMARY OF GENERAL FUND BUDGET VARIANCES

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City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
18 City’s increased share of the pooled taxes from online retail sales. In addition, a quicker than anticipated rebound in tourism caused TOT revenue to also exceed projections. The budget projected about $2.5 million in TOT revenue but received about $3.0 million in TOT revenue for the year.

General Fund expenditures ended the fiscal year $735,865 below budget projections. Expenditure savings resulted from deferred repair and maintenance expenditures in addition to service contracts that were deferred due to COVID-19. These service contracts were pushed back into the new fiscal year. Transfers Out from the General Fund has a budget savings of about $1.5 million, resulting from capital improvement projects that were not started, nor yet completed. Historically, transfers for capital projects are carried over into the next fiscal year.

CAPITAL ASSETS
The City of Buellton's investment in capital assets for its governmental and business-type activities as of June 30, 2021 amounts to $31,159,421 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, equipment and infrastructure. The total increase in the City's investment in capital assets for the current fiscal year was $1,920,581. Of the total increase, governmental activities showed an increase of $765,270, resulting from an increase in net depreciable capital assets. An increase of $1,155,311 in Business-type activities capital assets is the net result of ongoing projects offset by depreciation.

More detail of the capital assets and current activity can be found in the notes to the financial statements on pages 39 & 40 for significant accounting policies and Note 4 on pages 47 & 48 for other capital asset information.

DEBT ADMINISTRATION
As of June 30, 2021, the City had about $9.4 million of outstanding long-term obligations related to governmental activities and business-type activities. The City has no general obligation or revenue bonds.

Buellton enjoys a relatively healthy local economy; however, it does not currently have a bond rating because it has zero bonded debt on its balance sheet. When the City decides to go to Wall Street to sell bonds for future infrastructure improvements for Water or Wastewater systems, the City will go before Moody’s Investor Service or Fitch’s Rating Service for a credit rating. There is a definite need to update 2021 2020 2021 2020 2021 2020
Land $ 2,639,835 $ 2,639,835 $ 247,691 $ 247,691 $ 2,887,526 $ 2,887,526 Contruction in progress 337,960 - 1,365,319 - 1,703,279 - Total Nondepreciable Capital Assets 2,977,795 2,639,835 1,613,010 247,691 4,590,805 2,887,526 Buildings and improvements 7,970,931 7,927,047 574,387 574,387 8,545,318 8,501,434 Equipment 730,716 704,826 861,814 910,068 1,592,530 1,614,894 Infrastructure 22,393,322 20,778,848 13,639,027 13,415,422 36,032,349 34,194,270 Total Depreciable Capital Assets 31,094,969 29,410,721 15,075,228 14,899,877 46,170,197 44,310,598 Less: Accumulated Depreciation 9,203,652 7,946,714 10,397,929 10,012,570 19,601,581 17,959,284 Net Depreciable Capital Assets 21,891,317 21,464,007 4,677,299 4,887,307 26,568,616 26,351,314 Net Capital Assets $ 24,869,112 $ 24,103,842 $ 6,290,309 $ 5,134,998 $ 31,159,421 $ 29,238,840 Governmental Activities Business-type Activities Totals

Page 234 of 362 ends

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
19 the user fees for Water and Wastewater services. An adequate multi-year rate management program will provide the best opportunity for obtaining an investment-grade credit rating for the City of Buellton in the future.

Debt outstanding as of June 30, 2021, with a comparison to prior year and the net change are as follows:

Additional information on long-term debt can be found in Note 6 – Changes in Long-Term Liabilities in the notes to the basic financial statements.

ECONOMIC OUTLOOK
The City completed FY 2020-21 with better than expected operating financial results in some categories after the budget was revised to reflect changes to City operations and improvements in response to the current COVID-19 pandemic. The City finished the year exceeding budgeted revenues in the categories of Taxes and Intergovernmental revenue. The General Fund cash reserves were $7,606,500 and revenue exceeded expenditures (including other financing sources and uses) in 2020-21 by $1,181,022.

The General Fund ended the 2020-21 fiscal year with a fund balance of $9,668,279. Operating expenditures approved in 2020-21 budget amount to $7,622,664. The result is a coverage ratio of about 126%. Because it is difficult to fully anticipate dramatic changes in the national and local economies, the Council has set an unassigned fund balance goal of 50% of the general fund’s operating expenditures.

When the City prepared the adopted FY 2021-22 Budget, it considered how the COVID-19 pandemic will impact future revenues and expenditures. It is difficult to project the economic impact as the status of the pandemic is changing constantly. Economic recovery from the COVID-19 pandemic is a key component to the City’s operations for the upcoming year.

After the FY 2021-22 Budget was prepared, the City amended the budget to recognize $1.2 million of new Federal American Rescue Plan Act (ARPA) funding that is to be used for COVID-19 recovery. The City anticipates the use of those for replacement revenue for revenue lost due to the COVID-19 pandemic, Broadband Infrastructure and for investment in Water and Sewer Infrastructure.

The City is already experiencing overall growth in TOT and sales tax. Sales tax revenue is expected to continue through the next year and depends on the demand for travel and experiences shifting from spending on taxable goods, higher fuel prices, and consumer’s disposable income. In addition, possible increases in future interest rates may slow down financing for automobiles, homes and consumer loans.

DEBT DESCRIPTION 2021 2020 2021 2020 2021 2020
Compensated absences $ 100,198 $ 84,446 $ 42,413 $ 41,638 $ 142,611 $ 126,084 Capital leases payable 835,209 13,542 3,318,358 - 4,153,567 13,542 Net OPEB liability 1,891,654 1,628,589 757,635 703,898 2,649,289 2,332,487 Net pension liability 1,897,035 1,627,620 514,230 627,935 2,411,265 2,255,555 Total long-term liability $ 4,724,096 $ 3,354,197 $ 4,632,636 $ 1,373,471 $ 9,356,732 $ 4,727,668 Governmental Activities Business-type Activities Totals

Page 235 of 362 ends

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
20 Potential impacts on property tax revenue remains limited. Future growth in property tax values will likely be slowed, but the City may continue to expect an increase in property tax revenues as the assessed values of homes remain high. It is uncertain if future development project proposals will emerge in the shortterm as businesses recover from COVID-19. Future development has the potential for property tax growth.

Quarterly reports will be presented to support the financial management of City resources, providing information to the City Council and public. As part of the mid-year budget review, the City prepares a report on financial position, considers economic factors and highlights trends based on the City’s budget versus what actually occurred during the period. A discussion of other economic factors provides a means of comparing the local economy against the larger economic events that may affect the City. This provides Council with a budget review at four periods during the year, offering better control of costs and identifying financial requirements prior to the close of the fiscal year. Modifications to the original budget take place each quarter as needed.

NEXT YEAR’S BUDGETED APPROPRIATIONS
The adopted budget for all City funds for the new fiscal year of 2021-22 is $17,515,447. The current adopted budget for fiscal year 2020-21 totals $17,312,421. Both are summarized below with CIP expenditures shown in the Citywide CIP row of the chart below for consistent comparison:

1. General Fund – Shows an increase of $561,591. Various employee position reclassifications and cost-of-living adjustment (COLA) contribute to the increase in expenditure appropriations.

Effective July 1, 2021, all full-time employees received a 2.0 percent COLA. The financial impact of all staffing changes are reflected in the new budget. Other significant changes include:
a. A one-time appropriation of $15,000 for demographic services to determine voter districts for the next election cycle.
b. CalPERS Unfunded Accrued Liability (UAL) contribution for FY 2021-22 is $184,139 compared to $104,407 the prior fiscal year.
c. 4.0 percent increase to the annual contribution to Buellton Senior Center. d. 18.0 percent increase in support to non-profit agencies such as People Helping People, Food Bank of Santa Barbara County, Santa Ynez Valley Veggie rescue, Nature Track, Zaca Center Preschool and California Organization for Public Safety, Inc.

Amount Percentage
FY 2021-22 FY 2020-21 Change Change
General fund $ 8,184,255 $ 7,622,664 $ 561,591 7.37%
Water & Sewer Funds 5,408,556 4,861,794 546,762 11.25%
Citywide CIP Fund 3,585,136 4,496,963 (911,827) (20.28)% Special revenue funds 337,500 331,000 6,500 1.96%
Total budget $ 17,515,447 $ 17,312,421 $ 203,026 1.17%

Page 236 of 362 ends

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2021
Management’s Discussion and Analysis
21 e. Addition of annual lease payment to repay the lease purchase agreement for the Engie Energy project. The first lease payment is due on January 1, 2022 with a 20-year term. f. Contract services with the Santa Barbara County Sheriff’s Department is experiencing a

16.3 percent increase from the prior year contract amount. g. The increase in Landscape Maintenance cost is mostly attributed to the inclusion of the Willemsen Property in the City-wide landscape maintenance contract. h. The Planning Department is anticipating a 9.0 percent increase primarily due to the cost associated with the update to the Circulation and Land Use elements of the Buellton General Plan and updating the General Guidelines. These costs are rollovers from the prior year and are not expected the following fiscal year. In addition, the City will increase contract services to assist in the preparation of updating (local/regional) planning documents and implement process improvements that will facilitate the acceleration of housing production. These costs will be reimbursed by the LEAP and REAP grants.

2. Water & Wastewater Funds – Shows an increase of $546,672. The majority of the increase includes transfers out from reserve for capital improvement projects. Capital Projects that enhance capacity are funded through revenue from connection fees. The City does not anticipate connection fees in the fiscal year, thus requiring the use of reserves.

3. Citywide Capital Improvement Program (CIP) Fund – The CIP Fund expenditures relate to Capital Improvements. CIP fund shows a decrease of $911,827. The reduction is due to the completion of the Median 2 Parking Lot Improvement which was about $1.3 Million. Historically, the City does not complete all budgeted projects and are carried over to the next fiscal year.

4. Special Revenue Funds – Shows no change in expenditures. Special revenue funds have restrictions against the use of the revenue received and expenditures are consistent.

REQUESTS FOR INFORMATION
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report and need additional financial information contact Finance Director, 107 West Highway 246, Buellton, CA 93427, or visit the City’s web page at www.cityofbuellton.com.

Page 237 of 362 ends

THl~ ~A~~ 1f~~~NT~C~i~~i.1~Y' LE~T ~~At~~.

Page 238 of 362 ends

CITY OF BUELLTON

STATEMENT OF NET POSITION
June 30, 2021
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments $ 10,223,611 $ 5,647,146 $ 15,870,757 Cash and investments -restricted 1,471,114 2,075,303 3,546,417 Accounts receivable, net 1,262,295 436,661 1,698,956
Interest receivable 4,044 3,011 7,055
Inventory 33,962 33,962
Prepaid items 111,901 1,121,041 1,232,942
Note receivable 150,000 150,000
Capital assets:

Non Depreciable:

Land 2,639,835 247,691 2,887,526
Construction in progress 337,960 1,365,319 1,703,279
Depreciable:

Buildings and improvements 7,970,931 574,387 8,545,318
Equipment 730,716 861,814 1,592,530
Infrastructure 22,393,322 13,639,027 36,032,349
Accumulated depreciation (9,203,652) (10,397,929} (19,601,581} Total assets 38,092,077 15,607,433 53,699,510

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension 429,086 116,312 545,398
Deferred OPEB 338,027 135,384 473,411
Total deferred outflows of resources 767,113 251,696 1,018,809

LIABILITIES
Accounts payable 1,163,209 96,240 1,259,449
Accrued wages 92,623 23,050 115,673
Deposits 298,47 32,650 331,136
Interest payable 10,529 42,118 52,647
Unearned revenue 6,500 6,500
Noncurrent liabilities:

Due within one year 43,523 61,471 104,994
Due in more than one year 4,680,573 4,571,165 9,251,738 Total liabilities 6,295,433 4,826,704 11,122,137

DEFERRED INFLOWS OF RESOURCES
Deferred pension 32,891 8,917 41,808
Deferred OPEB 6,018 2,411 8,429
Total deferred inflows of resources 38,909 11,328 50,237

NET POSITION
Net investment in capital assets 23,695,943 5,035,332 28,731,275 Restricted for:

Housing 491,315 491,315
Streets and roads 1,455,723 1,455,723
Unrestricted 6,881,867 5,985,765 12,867,632
Total net position $ 32,524,848 $ 11,021,097 $ 43,545,945 The notes to basic financial statements are an integral part of this statement. 23

Page 239 of 362 ends

CITY OF BUELLTON

STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2021
Program Revenues
Operating Capital
Governmental activities:

General government $ 2,004,116 $ - $ 44,216 $ -
Communitydevelopment 899,797 5,000
Cultural and leisure 967,345 180,216
Public safety 2,349,126 156,764
Public works 2,489,793 1,351,884
Interest on long-term debt 11,063
Total governmental activities 8,721,240 180,216 1,557,864 Business-type activities:

Water 2,250,890 2,681,691
Wastewater 1,161,838 1,223,684
Total business-type activities 3,412,728 3,905,375
Total $ 12,133,968 $ 4,085,591 $ 1,557,864 $ -
General revenues:

Taxes:

Property taxes
Sales and use taxes
Transient lodging tax
Franchise taxes
Other taxes
Fines and forfeitures
Investment income
Other general ~evei~ues
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of fiscal year
Net position, end of fiscal year
The notes to basic financial statements are an integral part of this statement. 24

Page 240 of 362 ends

Net (Expenses) Revenue and Changes in Net Position
Governmental Business-type
Activities Activities Tota!
$ (1,959,900) $ - $ (1,959,900)
(894,797) (894,797)
(787,129) (787,129)
(2,192,362) (2,192,362)
(1,137,909) (1,137,909)
(11,063) (11,063)
(6,983,160) (6,983,160)
430,801 430,801
61,846 61,846
492,647 492,647
(6,983,160) 492,647 (6,490,513)
1,670,306 1,670,306
2,934,332 2,934,332
3,020,078 3,020,078
330,044 330,044
37,456 37,456
8,654 8,654
124,175 20,773 144,948
27,7SS 2 7, 7 99
(760) 760
8,152,084 21,533 8,173,617
1,168,924 514,180 1,683,104
31,355,924 10,506,917 41,862,841
$ 32,524,848 $ 11,021,097 $ 43,545,945
25

Page 241 of 362 ends

~UNï~ FINANCIAL STATEMENTS
Fund ~escripti©n
Transportation Planning Special Revenue Fund
Capital Improvement Project Fund
Primary operating fund of the City; accounts far all activities except these legally ar administratively required to be accounted far in ether funds.

Accounts far funds used in the planning far transportation projects restricted by other governments.

Accounts far capital improvement projects by centralizing project expenditures. Projects are tracked and managed for the purposes of planning, scheduling, and budgeting capital improvements.
governmental Funds:

General Fund
m

Page 242 of 362 ends

CITY OF BUELLTON

GOVERNMENTAL FUNDS

BALANCE SHEET
June 30, 2021
Transportation Capital
Planning improvement Other
General Special Revenue PrniPct GnvPrnmPntal
ASSETS
Cash and investments
Cash and investments -restricted
Accounts receivable
Interest receivable
Due from other funds
Note receivable
Prepaid items
Total assets

LIABILITIES, DEFERRED INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable
Accrued wages and benefits
Deposits
Unearned revenue
Due to other funds
Total liabilities
Deferred Inflows of Resources:

Unavailable revenue
Total deferred inflows of resources
Fund Balances:

I~Jonspendable:

Prepaid items
Restricted:

Solar and lighting project
Housing
Streets, roads, and transportation
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
runa fund Fund Funds Totals
$ 7,606,500 $ 17,835 $ 722,034 $ 1,877,242 $ 10,223,611 1,471,114 1,471,114
1,130,404 29,573 102,318 1,262,295
3,354 6 684 4,044
136,444 136,444
1 ~n (lnll 1 ~n nnn
$ 393,839 $ 14,130 $ 722,034 $ 33,206 $ 1,163,209
92,623 92,623
298,476 298,476
~ ~nn c ~nn
791,438 150,574 722,034 33,206 1,697,252
150,000 150,000
150,000 150,000
111,901 111,901
1,338,606 1,338,606
491,315 491,315
1 /1CC 77~ 1 /1~~ 77~
8,217,772 (103,160)
~,v~o,~i~ ,lUJ,10V~ 1,7~F~,V3a 11,51L,15~
$ 10,609,717 $ 47,414 $ 722,034 $ 1,980,244 $ 13,359,409 The notes to basic financial statements are an integral part of this statement. 27

Page 243 of 362 ends

CITY OF BUELLTON

RECONCILIATION OF THE GOVERNMENTAL FUNDS -BALANCE SHEET

TO THE STATEMENT OF NET POSITION
June 30, 2021
Total fund balances -governmental funds $ 11,512,157
in governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation.

Capital assets at historical cost $ 34,072,764
Accumulated depreciation (9,203,652)
Net 24,869,112
In governmental funds, certain receivables are deferred because they do not meet current financial obligations. However, in government-wide statement of activities, they are recognized in the period that they are incurred. 150,000 In governmental funds, interest on long-term debt is not recognized until the period in which it matures and is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. (10,529)
Long-term liabilities: In governmental funds, only current liabilities are reported. In the statement of net position all liabilities, including long-term liabilities, are reported.

Long-term liabilities relating to governmental activities consist of:

Compensated absences payable $ 100,198
Capital leases payable 835,209
OPEB liability 1,891,654
Net pension liabiiity ï,897,035
Total (4,724,096)
In governmental funds, deferred outflows and inflows of resources relating to pensions and OPEB are not reported because they are applicable to future periods.

In the statement of net position, deferred outflows and inflows of resources relating to pensions and OPEB are reported.

Deferred outflows of resources relating:
to pensions $ 429 086
to OPEB 338,027
Deferred inflows of resources relating:
to pensions (32,891)
to OPEB (6,018)
728, 204
Total net position -governmental activities $ 32,524,848 The notes to basic financial statements are an integral part of this statement. 28

Page 244 of 362 ends

q . ,~~~,~~~. .q.
13,62ú
785,145
18C
Q
},126
ci, 6 ~~
~l AA w^]w
r r r _ ~___,___
105 13, 725
29,572 729,422 1,544,139
90 1$0, 216
8,654
A!~ P A eA w A I w-fP
9,125,691
1,8fl0,ú1ú
54fl,225
804,144
2,346,966
1, 361,108
25, 89fl
~ A -, ~,
29,667 135,566 9,89ú,924
1,80ú,010
54ú,225
804,144
2,346,96b
29, 5l3 6, flflfl 145, 591 1, 542, 272
1,996,318 2,fl22,2ú8
~ ~ -, -,
CITY i~F BUElLT©IV
G©VERNMENTAL FUN©S
STATEfV1ENT tJF REVENUES, EXPENQITURES, AND CHANGES IN FUNQ BA~► NCES For the Fiscal Year Ended June 3~, 2Q21
Transportation Capital
Planning Improvement 1Vonmajor
Special Revenue Project Governmental
Fund Fund Funds T©tats
Revenues:
loxes
i_icenses, permits, and fees
Intergovernmental
Charges for services
Fines and forfeitures
Use of money and property
C7ther
Total revenues
Expenditures:

General government
Community development
Cultural and leisure
Public safety
Public works
Capital outlay
Debt Service:

Principal
Interest
Total expenditures
Excess of revenues over (under} expenditures
t7ther financing sources (usesj:

Proceeds from capital lease
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances -July 1
Fund balances -June 3fl
6,886, 799 29, 573 2,flfl2, 318 145, 591 9,fl64, 2$1
2,238,892 94 (2,002,318} 589,975 826,643
829,589 829,589
2,úú2, 318 74, 50ú 2,ú76,818
{1,887,459} (190,119} (2,fl17,578}
{1,057,87fl) 2,002,31$ (115,619} 828,829
The notes to basic financial statements are an integral part of this statement. 29

Page 245 of 362 ends

CITY OF BUELLTON

RECONCILIATION OF THE STATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES fN FUND BALANCES OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2021
Total net change in fund balances -governmental funds $ 1,655,472 Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which additions to capital outlay of $2,022,208 was more than depreciation expense ($1,256,938). 765,270 In governmental funds, interest on long-term debt is recognized in the period that it becomes due. In the government-wide statement of activities, it is recognized in the period that it is incurred.

Unmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period was: (10,529)
In the statement of activities, compensated absences are measured by the amounts earned during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). This fiscal year, vacation earned exceeded the amounts used by $15,752. (15,752]
In governmental funds, OPEB costs are recognized when employer contributions are made.

In the statement of activities, OPEB costs are recognized on the accrual basis. This fiscal year, the difference between accrual-basis OPEB costs and actual employer contribution was: (159,949) In governmental funds, proceeds from debt are recognized as other financing sources.

In the government-wide statements, proceeds from debt are reported as increases to liabilities. Amounts recognized in governmental funds as proceeds from debt, net of issue premium or discount, was: (829;589)
In governmental funds, repayments of long-term debt are reported as expenditures.

In the government-wide statements, repayments of long-term debt are reported as reductions of liabilities. 7,922
In governmental funds, pension costs are recognized when employer contributions are made. In the statement of activities, pension costs are recognized on the accrual basis.

This year, the difference between accrual-basis pension costs and actual employer contributions was: (243,921)
Changes in net position -governmental activities $ 1,168,924 The notes to basic financial statements are an integral part of this statement. 30

Page 246 of 362 ends

~ ~ ~ ~ s ~ r ~
Major Funds:

Fund
Water Fund
Wastewater Fund
Accounts For revenues and expenses associated with the pity's Water enterprise operation.

Accounts for ail activities associated with the operation and maintenance o~ providing fewer services.
31

Page 247 of 362 ends

CITY C}F BUEI.LTt~iV
PRC3PRIETARY FUNC3S
STATEMENT QF NET P4SITI©N
jUne 3~3, 2(32~.

Water Wastewater
Fund Fund T©tats
ASSETS
Current assets:

Cash and investments $ 3,548,635 $ 2,fl98,511 $ 5,647,146 Cash and investments -restricted 1,251,818 823,485 2,075,303 Accounts receivable, net 264,111 172,550 436,661
interest receivable 1,869 1,142 3,011
Inventory 33,962 33,962
Prepaid items 1,098,407 22,634 1,121,041
Total current assets 6,198,802 3,118,322 9,317,124
Capital assets:

Land 247,691 247,691
Construction in progress 828,287 537,032 1,365,319
Buildings and improvements 574,387 574,387
Equipment 435,0{32 426,812 861,814
Infrastructure 7,204,948 6,434,079 13,639,027
9,290,315 7,397,923 16,688,238
Less accumulated depreciation X5,247,334) ~5,15fl,595~ {10,397,929 Total capital assets net of accumulated depreciation) 4,042,981 2,247,328 6,290,309 Total assets 10,241,783 5,365,650 15,607,433
©EFERREQ C1UTFl.{~S C}F RESOURCES
Deferred pension 58,280 58,032 116,312
Deferred ©PEB 67,620 67,764 135,384
Total deferred Outflows ©f resources 125,90© 125,796 251,696

LIABILITIES
Current liabilities:

Accounts payable 43,696 52,544 96,240
Accrued wages and benefits 11,520 11,530 23,050
Deposits 32,660 32,660
Interest payable 25,797 16,321 42,118
Capital leases payable, current 36,697 24,774 61,471
Total current liabilities 150,370 105,169 255,539
Noncurrent liabilities:

Capital leases payable, noncurrent 2,(300,039 1,265,331 3,265,370 Compensated absences 16,965 16,965 33,930
C3PE8 liability 378,416 379,219 757,635
Net pension liability 257,663 256,567 514,230
Total noncurrent liabilities 2,653,083 1,918,082 4,571,165 Total Itabilitles 2,803,453 2,023,251 4,826,704
~EFERRE© INFLOWS C► F RESOURCES
Deferred pension 4,468 4,449 8,917
Deferred C3PEB 1,204 1,207 2,411
Total deferred inflows of resources 5,672 5,656 11,328

NET POSITION
Net investment in capital assets 3,262,305 1,773,027 5,035,332 Unrestricted 4,296,253 1,689,512 5,985,765
Total net position $ 7,558,558 $ 3,462,539 $ 11,021,097 The notes to basic financial statements are an integral part of this statement. 32

Page 248 of 362 ends

PR~3PRIETARY FUNC35
STATEMENT t~F REVENUES, EXPENSES, ANa ~NAN~ES IN NET PC~SITIC~N Fa► r tie Fiscal Year Ended June 3O, ~(~21
operating Revenues:

Charges for services
C7ther operating revenues
Total operating revenues
Operating Expenses:

Personnel services
Qperations and maintenance
Depreciation
Total operating expenses
operating income (loss}
Nc~n-Operating Revenues {Expenses}:

Loss on disposal of capital assets
Interest income
Interest expense
Total non-operating revenues (expenses)
Income (loss before transfers
iransfers:

Transfers in
Total transfers
Change 'rn net position
PVet position, July 1
Net position, June 30
Water 1tVastev+rater
Fund Fund Totals
$ 2,671,534 1,21.5,827 $ 3,887,361
10,157 7,857 18,014
2,6181, 691 1, 223, 684 3, 905,375
304,244 304,598 6©8,842
1, 704, 3 $8 604, 384 2, 308, 772
216,461 227,071 443,532
2,225,093 1,136,053 3,362,146
456,598 87,631 544,229
(9,464) (9,464}
13,483 7,290 20,773
(25,797 (16,321) (42,118}
(12,314) (18,495) (30,809)
444, 284 69,136 513,420
380 380 760
380 380 760
444,fí64 69,516 514,280
7,113,894 3,393,023 10,546,917
$ 7,558,558 $ 3,462,539 $ 11,021,097
The notes to basic financial statements are an integral part of this statement. 33

Page 249 of 362 ends

CITY fJF ~3UEl.LTC}N

PROPRIETARY FUNDS
STATEiV1ENT OF CASH FLOWS
Far the Fiscal Year Ended June 30, 2021
Water Wastewater
Fund Fund Totals
Cash Flows From Operating Activities:

Receipts from CUstamerS 2,665,789 $ 1,180,252 $ 3,846,041 Payments to supplïers {1,929,181} {612,994} {2,542,175} Payments to employees {323,298) {323,864} {647,162}
Diet cash provided by operating activities 413,310 243,394 656,704 Cash Flows From Capital and Related Financing Activities:

Acquls~tian of capital assets {1,©52,649} {555,658} {1,fú8,307} Capital lease proceeds 2,032,494 1,285,864 3,318,358
Net cash used by capital and related
flnanGng actlVitleS 979,845 730,206 1,710,©51
Cash Flows From Nc~n-Capital Financing Activities:

Transfers 380 380 760
Net cash provided by non-capital financing
activities 380 380 760
Cash Flows From Investing Activities:

Interest income 18,968 10,336 29,304
Net cash provided by investing activities 18,968 10,336 29,304 Net increase in cash and cash equivalents 1,412,503 984,316 2,396,819 Cash and cash equivalents -July 1 3,38?,950 1,937,680 5,325,630 Cash and cash equ~Valents -June 30 $ 4,800,453 $ 2,921,996 $ 7,722,449 Reconcilïation of operating {lossj to net cash provided {used} by operating activities:
©perating ïncome {loss} $ 456,598 87,631 $ 544,229
Adjustments to reconcile operating income {lass} to net cash provided by operating activities:

Depreciation expense 216,461 227,071 443,532
Change in assets, deferred outflows of resources, liabilities, and deferred inflows of resources:

Receivables, net {23,822) {43,432} {67,254}
Prepaid expenses {302,756} {15,253) {318,009}
Inventories 58,698 58,698
Accounts and other payables 19,265 6,643 25,908
Accrued wages and benefits 9,641 9,651 19,292
Deposits 7,920 7,92©
Compensated absences 388 387 775
OPEB liability 26,4618 27,269 53,737
Deferred outflows of resources 14,85fí 14,966 29,822
Net pension liability {56,295} {57,410} {113,705}
Deferred inflows of resources {14,112} {14,129} (28,241} Net cash provided by operating activities $ 413,310 $ 243,394 $ 656,704 The notes to basic financial statements are an integral part of this statement. 34

Page 250 of 362 ends

NCJTES T't3 TN~ ~~NANCIAL ST~4TEli~IENTS

Page 251 of 362 ends

~K~~~N~~~~~~~K~~
|N~~X~~N~~~~~~TH~HNANCk~L~TAT~»W~NT~
Not~4—~~püa!A~~et---------------------------------------------------------.47 NoteB—P~n~~n~~n-------------------_—_____________________________________~~ No~~lS—D~f~~~undB~~nc~-----------------------------------------------------~O Not~l~—~ub~~~u~nt~v~nt------------------------------------------------------~0

Page 252 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The reporting entity is the City of Buellton. There are no component units included in this report that meet the reporting entity definition criteria of GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, GASB Statement No. 61, and GASB Statement No. S0. The City of Buellton (City) was incorporated in 1992, under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: public safety (Police and Fire), highways and streets, water service, wastewater, public improvements, planning and zoning, and general administration.

B. Basis of Presentation
The City's basic financial statements are prepared inconformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

Government-wide Statements
The Statement of Net Position and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities although interfund services provided and used are not eliminated in the process of consolidation.

Government activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the City's governments! activities, r?irect expenses úre those that are specifically associated or~ith a program o - fu~~ctiori arid, therefore, are clearly identifiable to a function. Program revenues include (a) charges paid by the recipients of goods or services offered by the pr~ugrarr~s, ( b) grants and contributions that are restricted to meeting the operational needs of a program, and (c) fees, grants, and contributions that are restricted to financing the acquisition or construction of capita! assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements
The fund financial statements provide information about the City's funds. Separate statements for each fund category (governmental and proprietary) are presented. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. Ali remaininggovernmentalfunds are aggregated and reported as nonmajor funds.

Proprietary fund financial statements include: a Statement of Net Position; a Statement of Revenues, Expenses, and Changes in Net Position; and a Statement of Cash Flows for all proprietary funds.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or non-current) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which liability is incurred.
36

Page 253 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued
Operating revenues in the proprietary funds are those revenues that are generated from the primary operation of the fund. AI! other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.

C. Major Funds
GASB Statement No. 3~ defines major funds and requires that the City's ~najor~ funds are identified and presented separately in the fund financial statements. A!I other funds, called nonmajor funds, are combined and reported in a single column in the Fund Statements as Other Governmental Funds, regardless of their fund-type.

Major funds are defined as funds that have either assets, liabilities, revenues, orexpenditures/expenses equal to ten percent of their fund-type total. The Genera! Fund is always a major fund. The City may also voluntarily select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund —Accounts for all general revenues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of a governmental unit which are not accounted for in other funds.

Transportation Planning Special Revenue Fund —Accounts for revenue used in the planning for transportation projects restricted by other governments. Funds are a State grant derived from a 1/4-cent share of retail sales tax collected statewide.

Capital {rnp~~ovefnent Prvjeet Fund —Accounts for capital improvement projects by centralizing project expenditures. Projects are tracked and managed for the purp~~es of pian~iir~g, scheduling, and budgeting capital improvements.

The City reported the following major proprietary funds:

Water Fund —This fund was established as a separate fund to account for the operation of the City's water utility. It is aself-supporting activity that provides services on auser-charge basis to residents and businesses located in the City.

Wastewater Fund —This fund was established as a separate fund to account for the operation of the City's wastewater utility. It is aself-supporting activity that provides services on auser-charge basis to residents and businesses located in the City.
37

Page 254 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASK FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ~
E.

Basis of Accounting
The government-wide and proprietary funds financial statements are reported using the economicresources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.

The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have matured.

Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations are recognized in the fiscal year in which all eligibilíty requirements have been satisfied.

Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services.

Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Underthe terms of grant agreements, the City may fund certain programs ~:~ith a combination of cost-reimbursQment grants, categorical block grants, a~~d ge~~eral revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures/expenses. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues, if necessary.

Property Taxes
California Constitution Article XIII A limits the combined property tax rate to one percent of a property's assessed valuation. Additional taxes may be imposed with voters' approval. Assessed value is calculated at one hundred percent of a property's fair value, as defined by Article XIII A, and may be increased by no more than two percent per year, unless a change in ownership or new construction occurs. The State legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions.

Property tax revenues are recognized in the fiscal year for which taxes have been levied and collected within sixty days of fiscal year end. Property taxes are billed and collected as follows:

Secured Unsecured
January 1 January 1
July 1 July 1
November 1 (50%) August 1
February 1 (50%)
December 10 (Nov.) August 31
April 10 (Feb.)
Valuation/Lien Dates
Levy Dates
Due Dates
Delinquency Dates
38

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CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenditures or expenses as appropriate. Actual results could differ from those estimates.

G. Cash, Cash Equivalents, and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three ~moriths or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool which maintains the general characteristics of a demand deposit account.

Disclosure requirements for Deposits and Investment Risks were made in the following areas:
• Interest Rate Risk
• Credit Risk
-Overall
-Custodial Credit Risk
-Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures.

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those sec! ~rities for wh':ch market quotations are readily available.

The City participates in the Local Agency Investme~it Fu~~ú ~LAIF~, an investment pool managed by the State of California. LAIF has invested a portion of the pooled funds in Structured Notes and Asset- Backed Securities.

LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizingchese investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as a result of changes in interest rates.

H. Inventories
The City accounts for inventories using the first-in, first-out method. Inventories in the Water Fund consist primarily of meters and are carried at cost.

Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available.

Donated fixed assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at their acquisition value. City policy is to capitalize ail capital assets with costs exceeding a minimum threshold of $5,000 and with useful lives exceeding one year. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Structures and Improvements SO years
Machinery and Equipment 3-15 years
Infrastructure 15-100 years
39

Page 256 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASK FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1—SUMMARY OF StGNIFfCANT ACCOUNTING POLICIES (Continued) Capital Assets (Continued
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, wastewater, park lands, and buildings. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping, and land.

These subsystems were not delineated in the basic financial statements. The appropriate operating departrnent maintains information regarding the subsystems.

Interest accrued during capital assets construction, if any, is capitalized for the business-type and proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the Basic Approach defined by GASB Statement No. 34, which requires all infrastructures be reported at historical cost and be depreciated over their estimated useful lives.

Long-term Liabilities
Government-Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are reported as deferred outflows if they constitute bond insurance.

Fund Financial Statements
The Governmental Fund Financial Statements do not present long-term liabilities. Consequently, long-term liabilities are shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Stateme~.t of Nei PoSitiúri. Governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing J. Long-term Liabilities (Continued)
sources while discounts on debt issuance are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Proprietary Fund Financial Statements use the same principles as those used in the Government-Wide Financial Statements.

K. Compensated Absences
Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as incurred and the related expenses and líabilities are reported in the appropriate activity. 40

Page 257 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued) K. Compensated Absences Continued)
Fund Financial Statements
Incompliance with Governmental Accounting Standards Board Statement No. 16, the City has established a liability for accrued vacation in relevant funds. For governmental type funds, the current liability appears in the respective funds. All vacation paid is accrued when incurred in the government-wide and proprietary funds financial statements. This liability is set up for the current employees at the current rates of pay. Each fiscal year, an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The Genera! Fund is primarily responsible for the repayment of the gover~nrrientai portion of compensated absences. Accumulated employee sick leave benefits are not recognized as liabilities ofthe City.

The City's policy is to record sick leave as an operating expense in the period taken since such benefits do not vest nor is payment probable; however, unused sick leave is added to the creditable service period for calculation of retirement benefits when the employee retires.

L. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.

Grants and entitlements received before eligibility requirements are met are recorded as unearned revenue.

M. Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63, "Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position," and GASB Statement No. 65, "Items Previously Reported as Assets and Liabilities," the City recognizes deferred outflows and inflows of resources.

In addition to assets, the Statement of Net Position wilt sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is defined às a consumption of net position by the government that is applicable to a future reporting period. Thé City has two items that qualify for reporting in this category; refer to Note 9 and Note 10 for detailed listing of the deferred outflows of resources the Cíty has reported.

In addition to liabilities, the Statement of Net Position and the Governmental Funds —Balance Sheet will sometimes report a separate section for deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net position by the City that is applicable to a future reporting period. The City has two items that qualify for reporting in this category; refer to Notes 3, 9, and 10 for detailed listing of the deferred inflows of resources the City has reported.

N. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Buellton's California Public Ernpioyee's Retirement System (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 41

Page 258 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES {Continued) O. Other Postemployment Benefits ~OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the Pfan's fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

P. Fund Balances
Fund balances of the governmental funds are classified as follows:

Norispendable Fund Balance —represents amounts that cannot be spent because they are either not in spendable form (such as inventory or prepaid insurance) or are legally required to remain intact (such as notes receivable or principal of a permanent fund).

Restricted Fund Balance —represents amounts that are constrained by external parties, constitutional provisions or enabling legislation.

Committed Fund Balance —represents amounts that can only be used for a specific purpose because of a formal action by the City's governing board. Committed amounts cannot be used for any other purpose unless the governing board removes those constraints by taking the same type of formal action. Committed fund balance amounts may be used for other purposes with appropriate due process by the governing board.

Commitments are typically done through adoption and amendment of the budget. Committed fund balance amounts differ from restricted balances in that the constraints on their use do not come from outside parties, constitutional provisions, or enabling legislation.

Assigned Fund Balance —represents amounts that the City intends to use for a specific purpose, but that do not meet the criteria to be classified as restricted or committed. Intent may be stipulated by the governing board or by an official or body to which the governing board delegates the authority. Specific amounts that are not restri cted or committed in a special revenue, capital projects, debt service, o~~ permar~er~t fund are assigned for purposes in accordance with the nature of their fund type or the fund's primary purpose.

Assignments within the general fund convey that the intended use of those amounts is for a specific purpose that is narrower than the general purpose of the City.

Unassigned Fund Balance —represents amounts which are unconstrained in that they may be spent for any purpose. Only the general fund reports a positive unassigned fund balance. Other governmental funds might report a negative balance in this classification because of overspending for specific purposes for which amounts had been restricted, committed or assigned.

When an expenditure is incurred for a purpose for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds.

Q. Net Position
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources, and liabilities added to the deferred inflows of resources, be reported as net position. Netposition is classified as either net investment in capital assets, restricted, or unrestricted. 42

Page 259 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued] Q. Net Position (Continued)
Net position that is net investment in capital assets, consists of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Restricted net position is the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislations. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position.

R. I nterfund Balances/Internal Balances
Advances to and advances from other funds represent interfund loans in the fund financial statements.

Advances between funds are offset by a fund liability or by deferred revenue in the applicable governmental funds to indicate that they are not expendable available financial resources. Any unpaid interest due to lack of funds in the borrowing fund increases the princípal owed and is reported in the lending fund as deferred revenue. All other outstanding balances between funds are reported as due to and due from other funds.

These are generally repaid within the following fiscal year. Any residual balances outstanding between the governmental activities and business-type activities are reported in the Government-Wide Financial Statements as "ínternal balances."
S. Bud~etary Accountin~
The City Council establishes budgets for the General Fund and ail Special Revenue Funds. Budgetary control is legally maintained at the fund level for these funds. Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year's budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code. The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Manager is authorized t4 transfer budgeted amounts within a fund without formal council action or approval. The City Manager is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. There were no material supplemental appropriations made for the fiscal year ended June 30, 2021. Budget information is presented for the General and budgeted Special Revenue Funds in the fund financial statements. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

Appropriations lapse at the end of the fiscal year and then are re-budgeted for the coming year. Under Article XIII B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fees schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2021, based on the calculations by City Management, proceeds of taxes did not exceed the appropriations limit. Budgeted appropriations for the various governmental funds become effective each July 1.
43

Page 260 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) New Accounting Pronouncements
Governmental Accounting Standards Board Statement No. 84 For the fiscal year ended June 30, 2021, the District implemented Governmental Accounting Standards Board (GASB) Statement 84," Fiduciary Activities". This Statement is effective for periods beginning December 15, 2019. The objective of this Statement is to enhance the consistency and comparability of fiduciary activity reporting by state and local government. Implementation of the GASB Statement No. 84 did have an impact on the District's financial statements for the fiscal year ended June 30, 2021, see Note 13 -Restatements.

Future Accounting Pronouncements
GASB Statements listed below will be implemented in future financial statements:

Statement No. 87 "Leases" The provisions of this statement are effective for fiscal years beginning after June 15, 2021.

Statement No. 89 "Accounting for Interest Cost Incurred The provisions of this statement are effective before the End of a Construction for fiscal years beginning after December 15, 2020.

Period"
T.

Statement No. 91 "Conduit Debt Obligations"
Statement No. 92 "Omnibus 2020"
Statement No. 93 "Replacement of Interbank Offered
Rates"
Statement No. 94 "Public-Private and Public-Public
Partnerships and Availability
Payment Arrangements"
Statement No. 96 "Subscription-Based Information
Technology Arrangements"
Statement No. 97 "Certain Component Unit Criteria, and
Accounting and Financial Reporting for
Internal Revenue Code Section 457
Deferred Compensation Plans - an
amendment of GASB Statements No. 14
and No. 84, and a supersession of GASB
Statement No. 32"
The provisions of this statement are effective
for fiscal years beginning after December 15, 2021.

The provisions of this statement are effective
forfiscal years beginning afterJune 15, 2021.

The provisions of this statement except for paragraphs
11b, 13, and 14 are effective forfiscal years beginning afterJune 15, 2020. Paragraph 11b is effective forfiscal years beginning after December 31, 2021. Paragraphs
13 and 14 are effective for fiscal years beginning after June 15, 2021.

The provisions of this statement are effective
forfiscal years beginning afterJune 15, 2022.

The provisions of this statement are effective
for fiscal years beginning afterJune 15, 2022.

The provisions of this statement except for paragraphs
6-9 are effective for fiscal years beginning after
December 15, 2019. Paragraph 6-9 is effective for fiscal years beginning after June 15, 2021.
44

Page 261 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 2 -- CASH AND INVESTMENTS
The composition of cash and investments as of June 30, 2021, is as follows:

Cash on hand $ 700
Deposits with financial institutions 9,103,467
Investments 10,313,007
Total cash and investments $ 19,417,174
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of the City's debt instruments or Agency's agreements:

Statement of Net Position:

Cash and investments $ 15,870,757
Restricted cash 3,546,417
Total cash and investments $ 19,417,174
Governmental Accounting Standards Board (GASB) Statement No. 72, "Fair Value Measurements and Application," provides the framework for measuring fair value. The framework categorizes a fair value hierarchy that is based on the valuation inputs used to measure the fair value of the asset. Levei 1 inputs are quoted prices in active markets for identical assets; bevel 2 inputs are significant other observable inputs; Levei 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2021:

Fair Value Measurement Using
Quoted Prices in Significant
Active Markets Other Significant
for Identical Observable Unobservable
Assets Inputs Inputs
Investments by fairvalue Total (Level 1) (Level 2) (Level 3) Debt securities:

Negotiable certificates of deposit $ 1,464,452 $ 1,464,452 $ - $ - Total investments measured at fair value 1,464,452 $ 1,464,452 $ - $ - investments measured at amortized cost:

LA I F 8, 641, 673
Money market funds 206,882
Total investments $ 10,313,007
A. Inv_e_ stments Authorized by the California Government Code and the Citv's Investment Policv The table below identifies the investment types that are authorized for the City by the California Government Code. The table also identifies certain provisions of the California Government Code that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio in One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Bankers' Acceptance 180 days 40% 30%
Commercial Paper 270 days 15% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year None None
Reverse Repurchase Agreements 92 days 20% None
Money Market Mutual Funds N/A 20% 10%
Local Agency Investment Fund (LAIF) N/A None None
45

Page 262 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 2 —CASH AND INVESTMENTS Continued)
B. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments, and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flows and liquidity needed for operations.

Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

Remaining Maturity (in Months)
Carrying 12 Months 13-24 25-60 More than
Investment Type Amount Or Less Months Months 60 Months
LA I F $ 8, 641, 673 $ 8, 641, 673 $ - $ - $ -
Negotiable certificates of deposit 1,464,452 65,327 360,577 1,038,548 Money market funds 206,882 206,882
Tota I $ 10, 313,007 $ 8, 913, 882 $ 360, 577 $ 1, 038, 548 $ - Generally, credit risk ís the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, and the actual rating as of fiscal year end for each investment type.

Minimum Exempt
Carrying Legal From Rating as of Fiscal Year End
Investment Type Amount Rating Disclosure AAA Not Rated
LAIF $ 8,641,673 N/A $ - $ - $ 8,641,673
Negotiable certificates of deposit 1,464,452 !~!/,4 1,464,452 Money market funds 206,882 N/A 206,882
To to I $ 10, 313,007 $ - $ - $ 10, 313,007
C. Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represents 5% or more of the total City's investments.

D. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by State or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under State law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City's deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

None of the City's deposits with financial institutions in excess of the Federal Depository Insurance Corporation's limits were held in uncollateralized accounts.
46

Page 263 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 2 -CASH AND INVESTMENTS (Continued)
D. Custodial Credit Risk Continued)
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or governmental investment pools (such as LAIF).

E. investment in State Investment Pool
The City is a voluntary participant in the focal Ager~cy Investment Fund (LAIF} that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying basic financial statements at the amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by WAIF, which are recorded on an amortized cost basis.

NOTE 3 -- NOTE RECEIVABLE AND DEFERRED INFLOW OF RESOURCES FOR UNAVAILABLE REVENUE On June 19, 2020, the City entered into a note receivable of $150,000 with its City Manager to be used for the City Manager's purchase of a home on Beech Courtin Buellton. The loan is to be repaid in monthly payments of 4%annual interest only for 60 months at the end of which the principal of $150,000 will be due in full. The loan is secured by a deed of trust on the property. For the governmental funds statements, this long-term note receivable is unavailable revenue in the current period and thus is reported as a deferred inflow of resources of $150,000.

MOTE 4 -- CAPITAL ASSETS
Capital assets activity for the fiscal year ended June 30, 2021, was as follows:

Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
$ 2, 639, 835 $ - $ - $ 2, 639, 835
337, 960 337, 960
$ 2, 639, 835 $ 337, 960 $ - $ 2, 977, 795
Governmental Activities
Nondepreciable capital assets:

Land
Construction in progress
Total nondepreciable capital assets
Depreciable capital assets:

Buildings and improvements
Property and equipment
Infrastructure
Total depreciable capital assets
less accumulated depreciation
Buildings and improvements
Property and equipment
Infrastructure
Total accumulated depreciation
Net depreciable capital assets
Net capital assets
$ 7, 927,047 $ 43, 884 $
704, 826 25, 890
20, 778, 848 1, 614, 474
29, 410, 721 1, 684, 248
2, 003, 947 198, 352
688, 264 28, 919
5, 254, 503 1, 029, 667
~ an~ ~~n ~ ~~~ Q~Q
- $ 7, 970, 931
730, 716
22, 393, 322
31,094, 969
2, 202, 299
717,183
6, 284,170
4 ~n~ ~~~
~ Z 1, 464, 007 ~ 4 Z 7, 310 ~ - ~ Z 1, 891, 317
$ 24,103, 842 $ 765, 270 $ - $ 24, 869,112
47

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CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 4 -CAPITAL ASSETS (Continued)
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Business-Type Activities
Nondepreciable capital assets:

Land $ 247, 691 $ - $ - $ 247, 691
Construction in progress 1,365,319 - 1,365,319
Total nondepreciable capital assets $ 247,691 $ 1,365,319 $ - $ 1,613,010 Depreciable capital assets:

Buildings and improvements $ 574,387 $ - $ - $ 574,387
Property and equipment 910,068 19,383 67,637 861,814
lo~frastructu~-e 13,415,422 223,605 13,639,027
Total depreciable capital assets 14,899,877 242,988 67,637 15,075,228 Less accumulated depreciation
Buildings and improvements 555,014 9,971 564,985
Property and equipment 724,267 39,135 58,173 705,229
Infrastructure 8,733,289 394,426 9,127,715
Total accumulated depreciation 10,012,570 443,532 58,173 10,397,929 Net depreciable capital assets $ 4,887,307 $ X200,544) $ 9,464 $ 4,677,299 Net capital assets $ 5,134,998 $ 1,164,775 $ 9,464 $ 6,290,309 Depreciation expense was charged to function and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:

Governmental Activities:

General government $ 46,637
Community development 276,741
Cultural and leisure 75,470
Public safety 2,160
Public works 855,930
Total depreciation expense-governmental activities $ 1,256;938 business-type Activities:

Water $ 216,461
Wastewater 227,071
Total depreciation expense -business-type activities $ 443,532 NOTE 5 -LONG-TERM LIABILITIES
A. Compensated Absences
Governmental Accounting Standards Board Statement No. 16 identifies certain items that should be accrued as a liability as benefits are earned by employees, but only to the extent it is probable that the employer will compensate the employees for the benefits through cash payments conditioned on the employee's termination or retirement.

The City's employees accumulate earned but unused benefits, which can be converted to cash at termination of employment. The non-current portion of these vested benefits, payable in accordance with various collective bargaining agreements, at June 30, 2021, total $100,198 for governmental activities and $42,413 for business-type activities.

B. Capital Leases Payable
On October 18, 2016, the City entered into a capital lease agreement with Coastal Copy, Inc. The lease proceeds were used to purchase two copiers for City Hall. The amount of the lease was $16,359 and accrues interest at 6.3586%. Annual lease payments are due each year commencing October 2016. 48

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~
C.
~

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 5 —LONG-TERM LIABILITIES (Continued)
Capital Leases Payable (Continued
On July 14, 2017, the City entered into a capital lease agreement with Avaya Financial Services. The lease proceeds were used to purchase the Avaya IP500 City phone system. The amount of the lease was $21,400 and the agreement was for 60 months at 0%interest. Annual lease payments are due each year commencing September 2017.

On December 18, 2020, the City entered into a capital lease agreement with Sterling National Bank. The lease proceeds are to be used to purchase equipment and install City's solar, LED lighting, and other energy improvements project. The amount of the lease was $4,147,947 and the agreement was for annual payments for 20 years at 2.45% interest. Annual lease payments are due each year starting in January 2022.

Future minimum lease payments are as follows:

Ending
June 30 Amount
2022 $ 179,619
2023 185,147
2024 189,994
2025 198,703
2026 208,501
2027-2031 1,169,954
2032-2036 1,482,001
2037-2041 1,903,131
Total minimum lease payments 5,517,050
Less amount representing interest (1,363,483)
Present value on net minimum lease payments $ 4,153,567 Other Post-Employment Liability
In accordance with GASB Statement No. 75, the City is required to measure and report liabilities associated with OPEB. The City's estimated OPEB liability on June 30, 2021 was $2,649,289. For governmental funds, these expenses are incurred by the General Fund. See Note 10 for further detail.

Net Pension Liability
In accordance with GASB Statement No. 68, the City is required to measure and report liabilities associated with its pension liabilíty. Pension expense in charged to functions and programs based on their proportionate share of total payroll cost. The City's estimated net pension liability on June 30, 2021, was $2,411,265. For governmental funds, these expenses are typically incurred by the General Fund. See Note 9 for further detail. 49

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CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 6 -CHANGES IN LONG-TERM LIABILITIES
The following is a summary of long-term liability activities for the fiscal year ended dune 30, 2021:

Balance Balance Due Within
$ 84,446 $ 47,122 $ 31, 370 $ 100,198 $ 25, 365
13, 542 829, 589 7, 922 835, 209 18,158
1, 628, 589 354, 477 91, 412 1, 891, 654
1, 627, 620 428, 821 159, 406 1, 897, 035
$ 3, 354,197 $ 1, 660,009 $ 290,110 $ 4, 724, 096 $ 43, 523 $ 41, 638 $ 19, 329 $ 18, 554 $ 42, 413 $ 8, 483
3, 318, 358 3, 318, 358 52, 988
703, 898 90, 349 36, 612 757, 635
627, 935 116, 241 229, 946 514, 230
$ 1, 373, 471 $ 3, 544, 277 $ 285,112 $ 4, 632, 636 $ 61, 471 Governmental activities:

Compensated absences
Capital leases payable
OPEB liability
Net pension liability
Total
Business-type activities:

Compensated absences
Capital leases payable
OPEB liability
Net pension liability
Total
NOTE 7 -- INTERFUND TRANSACTIONS
Interfund transactions are reported as either loans, services provided, reimbursements, or transfers. loans are reported as interfund receivables and payables, as appropriate, and are subject to elimination upon consolidation.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses.

Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers among governmental funds are netted as part of the reconciliation to the government-wide financial statements.

A. Due From/To Other Funds
Due to and from balances result from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur, transactions are recorded in the accounting system, and payments between funds are made.

Individual fund interfund receivable and payable balances at dune 30, 2021, are as follows:
f _ _ ._ _I r~ r .~ -.-
Major Governmental Funds:

General Fund $ 136,444 $ -
Transportation Planning Special Revenue Fund 136,444
Total $ 136,444 $ 136,444
B. Interfund Transfers
Interfund transfers consist of operating transfers from funds receiving revenue to funds through which the resources are to be expended.

Interfund transfers for the 2020-2021 fiscal year are as shown on the following page:

Page 267 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 7 — INTERFUND TRANSACTIONS (Continued)
B. Interfund Transfers (Continued)
Fund Transfers In Transfers Out
Major Governmental Funds:

General Fund $ - $ 1,887,459
Capital Improvement Project Fund 2,002,318
Nonmajor Governmental Funds:

Measure A Fund 110,244
Gas Tax Fund 77,475
Local Transportation Fund 74,500 2,400
Major Proprietary Funds:

Water Fund 380
Wastewater Fund 380
$ 2,077,578 $ 2,077,578
NOTE 8 —RISK MANAGEMENT
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Buellton is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority}. The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling ofself-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative vn ti ie BCiar d ofDireitOr'S. T i,e àoar~ú oNer aces through anine-member Executive Committee.

Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program -Claims are pooled separately between police and general government exposures. (1}The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2} The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3}The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence.

Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority's website: htt s:f,~(cipia.ar,~/çovera~e~risk-sl~arin~-paQls/. 51

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CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 8 —RISK MANAGEMENT (Continued)
B. Primary Self-Insurance Programs of the Authority
Primary Workers' Compensation Program -Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first Payer. (3}The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2020-21 the Authority's pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer's Liability losses from $5 million to $10 million are pooled among members.

C. Purchased Insurance
Pollution Legal Liability Insurance -The City of Buellton participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Buellton. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance -The City of Buellton participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Buellton property is currently insured according to a schedule of covered property submitted by the City of Buellton to the Authority. City of Buellton property currently has all-risk property insurance protection in the amount of $9,089,660. There is a $10,000 deductib{e per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Eartf~quake and Fíood insurance - T he City of Buellton purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Buellton property currently has earthquake protection in the amount of $7,767,673. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance -The City of Buellton purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

Special Event Tenant User Liability Insurance -The City of Buellton further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liabilíty insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Buellton according to a schedule. The City of Buellton then pays for the insurance. The insurance is facilitated by the Authority.

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2020-21.
52

Page 269 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 9 —PENSION PLAN
A. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (the Plan), administered by the California Public Employees' Retirement System (CaIPERS). The Plan's benefit provisions are established by statute. The Plan is included as a pension trust fund in the CaIPERS Comprehensive Annual Financial Report, which is available online at www.calpers.ca.gov.

The Plan consists of a miscellaneous pool and a safety pool (referred to as "risk pools"), which are comprised of individual employer miscellaneous and safety rate plans, respectively, including those of the City of Buellton. The City of Buellton's employer rate plans in the miscellaneous risk pool include the Miscellaneous plan (Miscellaneous) and the PEPRA Miscellaneous plan (PEPRA Misc.). The City of Buellton does not have any rate plans in the safety risk pool.

Benefits Provided
The Plan provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Classic members and PEPRA Safety members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA Miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. Ail members are eligible for non-duty disability benefits after five years of service. The death benefit is the Basic Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

The Plans' provisions and benefits in effect at June 30, 2021, are summarized as shown on the following page:

Miscellaneous
Hire Date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Contributions
Prior to On or after
January 1, 2013 January 1, 2013
2°ró ~~ 55 2% @ 62
5 years service 5 years service
monthly for life monthly for life
50-63 52-67

1.426% to 2.418% 1.0% to 2.5%

7.0% 6.5%

11.746% + $155,509 7.874% + $803
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate ofemployees.

Contributions to the pension plan from the City were $311,133 for the fiscal year ended June 30, 2021. 53

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CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 9 — PENSION PLAN
B. Pension Liabilities, Pension Expenses and Deferred Outflows/inflows of Resources Related to Pensions At June 30, 2021, the City reported a liability of $2,411,265 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward using standard update procedures.

The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all Pension Plan participants, actuarially determined. The City's proportion share of net pension liability for miscellaneous plans as ofJune 30, 2020, and 2019 was as follows:

MisrPllanPnus
Proportion-June 30, 2019 0.05633%
Proportion-June 30, 2020 0.05717%
Change-Increase (Decrease) 0.00084%
For the fiscal year ended June 30, 2021, the City recognized pension expense of $476,972. Pension expense represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits.

At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Differences between expected and actual experience
Changes in assumptions
Net difference between projected and actual earnings on retirement plan investments
Changes in proportion and differences between City
contributions and proportionate share of contributions
Adjustment due to differences in proportion
City contributions subsequent to the measurement date
Deferred Outflows Deferred Inflows of
of Resources Resources
$ 124,260 $ -
17,198
71;630
24,610
38,375
311,133
$ 545,398 $ 41,808
Deferred outflows of resources and deferred inflows of resources above represent the unamortized portion of changes to net pension liability, to be recognized in future periods in a systematic and rational manner. $311,133 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent year ending June 30, 2022.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in the pension expenses as follows:

Fiscal year Ending June 30, Amount
2022 $ 30,907
2023 71,538
2024 55,656
2025 34,356
$ 192,457
54

Page 271 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 9 — PENSION PLAN (Continued]
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued}
Actuarial Assumptions
The total pension liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions:

Miscellaneous
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Projected Salary Increase
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
J ~~ n e 30, 2019
June 30, 2020
Entry-Age Normal Cost Method

7.15 2.50%
Varies by Entry Age and Service

7.0% Net of Pension Plan Investment and
Administrative Expenses; includes Inflation
Derived using CaIPERS' Membership
Data for all Funds (1)
Contract COLA up to 2.50% until
Purchasing Power Protection Allowance
Floor on Purchasing Power applies;

2.50% thereafter
(1) The mortality table used was developed based on CaiPERS' specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of Scale MP 2016. For more details on this table please referto the December 2017 experience study report.

Discount Rate
The díscount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for public agency plans (including PERF C), CaIPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on testing the plans, the tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of municipal bond rate calculation is not deemed necessary. The longterm expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund, including PERF C. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CaIPERS' website under the GASB No. 68 section.

CaIPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management (ALM) review cycle that is scheduled to be completed in February 2022. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CaIPERS expects to continue using a discount rate net of administrative expenses for GASB No. 67 and No. 68 calculations through at least the 2021-22 fiscal year. CaIPERS will continue to check the materiality of the difference in calculation until such time as we have changed our methodology.

The long-term expected rate of return on pension plan investments was determined using abuilding-block method in which best-estimate ranges of expected future real rates of return (expected returns, net pension plan investment expense and inflation) are developed for each major asset class. 55

Page 272 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 9 —PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued
In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using abuilding-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits were calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalerlt rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated usíng the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

New
Strategic Real Return Real Return
Asset Class Allocation Years 1-10(a) Years 11+(b)
Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0% 1.00% 2.62%
Inflation Sensitive 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23
Real Assets 13.0% 3.75% 4.93
Liquidity 1.0% 0.00% -0.92%
Total 100.0%
(a) An expected inflation of 2.00% was used for this period. (b) An expected inflation of 2.92% was used for this period.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in Discount Rate The following represents the City's proportionate share of the net pension liability calculated using the discount rate of

7.15 percent, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.15 percent) or one percentage point higher (8.15 percent} than the current rate:
1% Decrease Current Discount Rate 1% Increase

6.15% 7.15% 8.15%
City's proportionate share of
net pension plan liability $ 3,790,039 $ 2,411,265 $ 1,272,027 Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports.

C. Payable to the Pension Plan
At June 30, 2021, the City had no amount outstanding for contributions to the pension plan required for the fiscal year ended June 30, 2021.
56

Page 273 of 362 ends

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 10 — POST-EMPLOYMENT HEALTH CARE BENEFITS ~OPEB)
A. Plan Description
Medical coverage is provided through asingle-employer CaIPERS Plan under the Public Employees' Medical and Hospital Care Act {PEMHCA), also referred to asPERSHealth. The City contributes up to $800 per month on behalf of each active employee and covered dependents. The employee is responsible for excess, if any of the total PEMHCA premium over $800 per month. The City offers the same medical plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverages offered under PEMHCA. Employees become eligible to retire and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of coveredPERSservice, or by attaining qualifying disability retirement status. The City's contribution on behalf of retirees is the same as for active employees -100% of PEMHCA premium for retiree and covered dependents, but not to exceed $800 per month. Benefits continue for the lifetime of the retiree with survivor benefits extended to surviving spouses. Membership of the plan consisted of nine retirees currently receiving benefits. The City pays a 0.27% of premium administrative fee on behalf of employees and retirees.

B. Employees Covered
As of the June 30, 2019 actuarial valuation, the following current and former employees were covered by the benefit terms under the City's Plan:

Active plan members 18
Inactive plan members or beneficiaries currently receiving benefit 18 Total 36
C. Contributions
The City currently finances benefits on apay-as-you-go basis.

D. Total OPEB Liability
The City's OPEB Liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the OPEB Liability was determined by an actuarial valuation as of June 30, 2019.

Actuarial assumptions. The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Salary increases 2.75%
Inflation 2.50%
Healthcare cost trend rate 6.00% in the first year trending down to 3.94% over 54 years Pre-retirement mortality rates were based on the CaIPERS tables.

Actuarial assumptions used in the Juiy 1, 2019 valuation were based on a review of plan experience, established pattern of practice an CaIPERS experience studies.

Discount rate. GASB 75 requires a discount rate that reflects the following:
a) The long-term expected rate of return on OPEB plan investments — to the extent that the OPEB plan's fiduciary net position (if any) is projected to be sufficient to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return; b) A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher — to the extent that the conditions in (a) are not met. 57

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CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 10 — POST-EMPLOYMENT HEALTH CARE BENEFITS (OPEB) (Continued) D. Total OPEB Liability (Continued
To determine a resulting single (blended) rate, the amount of the plan's projected fiduciary net position (if any) and the amount of projected benefit payments is compared in each period of projected benefit payments. The discount rate used to measure the City's total OPEB liability is based on these requirements and the following information:

Long-Term
Expected Return Municipal Bond
of Plan Investments 20 Year High Grade
Reporting Date Measurement Date (if any) Rate Index Discount Rate June 30, 2021 June 30, 2020 4.00% 2.45% 2.45%
June 30, 2020 June 30, 2019 4.00% 3.13% 3.13%
Changes in the OPEB Liability
Total OPEB
Liability
Balance at June 30, 2020
(Valuation Date June 30, 2019) $ 2,332,487
Changes recognized for the measurement period:

Service cost 145,915
Interest 75,571
Difference between expected and actual experience 16,298 Changes of assumptions 207;042
Coiltributio~~s - e~~ployer
implicit subsidy credit (14,910)
Benefit payments (113,114)
Administrative expense
Net Changes 316,802
Balance at June 30, 2021 $ 2,649,289
(Measurement Date June 30, 2020)
Sensitivity of the OPEB liability to changes in the discount rate. The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower (1.45 percent) or 1-percentage-point higher (3.45 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase
OPEB Liability $ 3,005,762 $ 2,649,289 $ 2,353,304
58

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CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 10 — POST-EMPLOYMENT HEALTH CARE BENEFITS {OPEB) {Continued) Sensitivity of the OPEB liability to changes in the healthcare cost trend rates. The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using healthcare cost trend rates that are 1- percentage-point lower (5.00 percent decreasing to 2.94 percent) or 1-percentage-point higher (7.00 percent decreasing to 4.94 percent) than the current healthcare cost trend rates:

OPEB Liability
1% Decrease
(5.00%
decreasing to
~ Qa°i ~
~ 2,483,695
Trend Rate
(6.00%
decreasing to
~ Qa°~ ~
$ 2,649,289
1 % Increase
(7.00
decreasing to
a 4a°i ~
$ 2,815,341
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $309,743. As of the fiscal year ended June 30, 2021, the City reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions $ 256,945 $ 8,429
Difference between expected and actual experience 86,368 OPEB contributions subsequent to measurement date 130,098 $ 473,411 $ 8,429
$130,098 reported as deferred outflows of resources related to OPEB resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the subsequent year ending June 30, 2n~~ nthAr amounts reported as deferred outflows of resources and deferred infiov~s of resources related to OPEB will be recognized in the OPEB expenses as follows:

Fiscal year ending June 30, ~mni int
2022 $ 88,257
2023 88,257
2024 88,864
2025 56,871
2026 12,635
$ 334,884
NOTE 11—CONTINGENCIES AND COMMITMENTS
A. Leda I
The City is a party to claims and lawsuits arising in the ordinary course of business. The City's management and legal counsel are of the opinion that the ultimate liability, if any, arising from these claims wíf) not have material adverse impact on the financial position of the City.

B. Grant Programs
The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial.
59

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CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 11—CONTINGENCIES AND COMMITMENTS (Continued)
C. Construction and Other Significant Commitments
Listed below are the projects for uncompleted contracts outstanding as of dune 30, 2021.

FY 2020-21 Road Maintenance Project with Granite Construction $ 651,190 Avenue of the Flags Median 2 Improvements Project with CalPortland Construction $ 56,189 Solar and Energy Project with ENGIE Services U.S. Inc. $ 2,844,669 NOTE 12 —JOINT OPERATING AGREEMENTS
Vi/ater operations —The Central Coast Water Authority (CCWA) is a Joint Power Authority authorized to finance, develop, operate, and maintain the Mission Hills and Santa Ynez extension to the Coastal Branch Phase II Extension of the California aqueduct of the State water project. Each member has entered into a water supply agreement with the Authority to pay their proportionate share of the project costs from local water revenues. These costs are reported in the Water Fund as operations and maintenance.

NOTE 13 —DEFICIT FUND BALANCE
The following fund reported a deficit fund balance at dune 30, 2021:

Major Fund:

Transportation Planning Special Revenue Fund $103,160
NOTE 14 —SUBSEQUENT EVENTS
On January 30, 2020, the World Health Organization ("WHO") announced a global health emergency because of a new strain of cor-onavirus originating in Wuhan, China (the "COVID-19 outbreak") and the risks to the international community as the virus spreads globally beyond ïts point of orïgin. In March 2020, the WHO classïfied the COVID-19 outbreak as a pandemic, based on the rapid increase in exposurC globally.

The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the City's financial condition, liquidity, and future results of operations. Management is actively monitoring the global situation on its financial condition, liquidity, operations, suppliers, and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the City is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity as of the date of issuance of these financial statements. ;• ~~

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• ~ . ~ ~ ~ ~ ~ ~
~► ~ !

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CITY OF BUELLTON

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Amounts Positive (Negative)
Revenues:

Taxes
Licenses, permits, and fees
Intergovernmental
Charges for services
Fines and forfeitures
Use of money and property
Other revenues
Total revenues
Expenditures:

General government
Community development
Cultural and leisure
Public safety
Public works
Capital outlay
Debt Service:

Principal
Interest
Total expenditures
Excess of revenues
over (under) expenditures
Other financing sources (uses):

PrOCeeds fr Om Càpitàl 12ase
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance
Fund balance -June 30
$ 6,731,692 $ 6,731,692 $ 7,992,216 $ 1,260,524
9,540 9,540 13,620 4,080
707,841 791,841 785,145 (6,696)
105,600 105,600 180,126 74,526
10,300 10,300 8,654 (1,646)
162,907 162,907 118,131 (44,776)
8,000 15,857 27,799 11,942
7,735,880 7,827,737 9,125,691 1,297,954
1,919,116 1,919,116 1,800,010 119,106
630,496 659,656 540,225 119,431
837,629 851,756 804,144 47,612
2,364,720 2,364,720 2,346,966 17,754
1,640,119 1,744,834 1,361,108 383,726
46,500 82,582 25,890 56,692
7,922 (7,922)
534 (534)
7,438,580 7,622,664 6,886,799 735,865
297,300 205,073 2,238,892 2,033,819
829,590 829,589 (ï)
(2,603,610) (3,433,200) (1,887,459) 1,545,741
(2,603,610) (2,603,610) (1,057,870) 1,545,740
(2,306,310) (2,398,537) 1,181,022 3,579,559
8,487,257 8,487,257 8,487,257
$ 6,180,947 $ 6,088,720 $ 9,668,279 $ 3,579,559
61

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CITY OF BUELLTON

TRANSPORTATION PLANNING SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BU DG ET AN D ACTUAL
For the Fiscal Year Ended June 30, 2021
Budgeted Amounts Variance with
Final Ri ~rloc~t
Original Final
Revenues:

Intergovernmental $ 35,000 $ 35,000 $ 29,572 $ (5,428)
Use of money and property 50 50 95 45
Total revenues 35,050 35,050 29,667 (5,383)
Expenditures:

Public works 45,000 45,000 29,573 15,427
Total expenditures 45,000 45,000 29,573 15,427
Excess of revenues over
(under) expenditures (9,950) (9,950) 94 10,044
Other financing sources (uses):

Transfers in 9,950 9,950 (9,950)
Total other financing sources (uses) 9,950 9,950 (9,950) Net change in fund balance 94 94
Fund balance -July 1 (103,254) (103,254) (103,254)
Fund balance -June 30 $ (103,254) $ (103,254) $ (103,160) $ 94 62

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CITY OF BUELLTON
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION —BUDGETARY COMPARISON SCHEDULES FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1 — BUDGETARY BASIS OF ACCOUNTING
The City prepares and adopts atwo-year budget, including a Capital Improvement Budget. City Council approves the biennial budget document by resolution. The budget serves as the City's legal spending policy. The second year of the budget is updated and adopted the following year by resolution. The City's budget is prepared on the modified accrual basis of accounting, consistent with generally accepted accounting principles {GAAP}.
63

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CITY OF BUELLTON

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY Last 10 Years*
As of June 30, 2021
The following table provides required supplementary information regarding the City's Pension Plan. 2021 2020 2019
Proportion of the net pension liability 0.02216% 0.02201% 0.02182% Proportionate share of the net pension liability $ 2,411,265 $ 2,255,555 $ 2,102,906 $ Covered payroll $ 1,594,414 $ 1,465,155 $ 1,422,177 $
Proportionate share of the net pension liability
2018 2017

0.02171% 0.02131%
2,153,367 $ 1,844,092
1,472,850 $ 1,313,499
as a percentage of covered payroll 151.23°1° 153.95% 147.87% 146.20% 140.40% Plan's total pension liability $ 43,702,930,887 $ 41,426,453,489 $ 38,944,855,364 $ 37,161,348,332 $ 33,358,627,624 Plan's fiduciary net position $ 32,822,501,335 $ 31,179,414,067 $ 29,308,589,559 $ 27,244,095,376 $ 24,705,532,291 Plan fiduciary net position as a percentage
of the total pension liability 75.10% 75.26% 75.26% 73.31% 74.06% 2016 2015
Proportion of the net pension liability 0.02029% 0.02162% Proportionate share of the net pension liability $ 1,392,818 1,345,267 Covered payroll $ 1,151,073 1,208,413
Proportionate share of the net pension liability
as a percentage of covered payroll 121.00% 111.33%
Plan's total pension liability $ 31,771,217,402 30,829,966,631 Plan's fiduciary net position $ 24,907,305,871 24,607,502,515 Plan fiduciary net position as a percentage
of the total pension liability 78.40% 79.82%
Notes to Schedule:

Changes in assumptions
In 2018, inflation was changed from 2.75 percent to 2.50 percent and individual salary increases and overall payroll growth was reduced from 3.00 percent to 2.75 percent.

In 2017, as part of the Asset Liability Management review cycle, the discount rate was changed from 7.65% to 7.15%.

In 2016, the discount rate was changed from 7.5% (net of administrative expense) to 7.65% to correct for an adjustment to exclude administrative expense.

In 2015, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of general employees. *- Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown. 64

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CITY OF BUELLTON

SCHEDULE OF PENSION CONTRIBUTIONS
Last 10 Years*
As of June 30, 2021
The following table provides required supplementary information regarding the City's Pension Plan. 2021 2020 2019 2018 2017
Contractually required contribution (actuarially determined) Contribution in relation to the actuarially determined
contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
$ 311,133 $ 342,541 $ 304,036 $ 219,633 $ 209,728
(311,133) (342,541) (304,036) (219,633) (209,728)
$ 1,647,755 $ 1,594,414 $ 1,465,155 $ 1,422,177 $ 1,472,850

18.88% 21.48% 20.75% 15.44% 14.24%
2016 2015
Contractually required contribution (actuarially determined) $ 180,244 $ 234,747 Contribution in relation to the actuarially determined
contributions (180,244) (234,747)
Contribution deficiency (excess) $ - $
Covered payroll $ 1,313,499 $ 1,151,073
Contributions as a percentage of covered payroll 13.72% 20.39% Notes to Schedule
Valuation Date: 6/30/2017
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2018/2019 were derived from the June 30, 2016 funding valuation report.

Actuarial Cost Method Entry Age Normal
Amortization !V!ethod,/Period '=or detUils, sQe June 30, 2017 funding valuation i'epurt.

Inflation 2.63%
Salary Increases Varies by entry age and service
Payroll Growth 3.00%
Investment Rate of Return 7.0% net of pension plan investment and administrative expenses; includes inflation.

Retirement Age The probabilities of retirement are based on the 2010 CaIPERS Experience Study for the
period from 1997 to 2007.

Mortality The probabilities of mortality are based on
the 2010 CaIPERS Experience Study for the
period from 1997 to 2007. Pre-retirement and
post-retirement mortality rates include 5 years
of projected mortality improvement using
Scale AA published by the Society of Actuaries.

Valuation Date: 6/30/2017 6/30/2016 6/30/2015
Discount Rate: 7.150% 7.375% 7.650%
*- Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown. 65

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CITY OF BUELLTON

SCHEDULE OF CHANGES IN THE OPEB LIABILITY AND RELATED RATIOS Last 10 Years*
As of J une30, 2021
Measurement Period
Total OPEB Liability
Service cost
Interest on the total OPEB liability
Actual and expected experience difference
Changes in assumptions
Changes in benefit terms
Implicit rate subsidy fulfilled
Benefit payments
Net change in total OPEB Liability
Total OPEB liability- beginning
Total OPEB liability- ending (a)
Covered payroll
Total OPEB liability as a percentage
of covered payroll
2021 2020 2019 2018
$ 145,915 $ 162,592 $ 158,875 $ 154,435
75,571 73,752 66,930 58,639
16,298 117,480
207,042 142,890 (17,465)
(14,910)
(113,114) (77,963) (4,168) (48,966)
316,802 418,751 204,172 164,108
2,332,487 1,913,736 1,709,564 1,545,456
$ 2,649,289 $ 2,332,487 $ 1,913,736 $ 1,709,564
$ 1,375,416 $ 1,307,324 $ 1,465,155 $ 1,425,694
192.62% 178.42 % 130.62 % 119.91%
*- Fiscal year 2018 was the 1st year of implementation, therefore only four years are shown. 66

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CITY OF BUELLTON

SCHEDULE OF OPEB CONTRIBUTIONS
Last 10 Years*
As of June 30, 2021
As of June 30, 2021, the plan is not administered through a qualified trust. Therefore there is no Actuarially Determined Contribution (ADC). Benefit payments of $130,098 were made on apay-as-you-go basis for the fiscal year ended June 30, 2021, $128,024 were made for the fiscal year ended June 30, 2020, $73,674 in benefit payments were made for the fiscal year ended June 30, 2019, and $57,525 in benefit payments were made for the fiscal year ended June 30, 2018.
*- Fiscal year 2018 was the 1st year of implementation, therefore only four years are shown. 67

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TH1~ P~4~E lNTENTItJ~IALLY ~.EFT BLA(~K.

Page 286 of 362 ends

SUPPLE~~ENTAI. iN~~RNIATIC~fi~ SEC~fi~N

Page 287 of 362 ends

BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
Expenditures:

Public works
Capital outlay
Total expenditures
Excess of revenues aver
{under} expenditures
tither financing saurces {uses);
Transfers in
Total other financing sources {uses}
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
Variance with
Final Budget
Budget Actual Amounts Positive Negative)
50,000 $ 6,000 $ 44,000
4,446,963 1,996,318 2,450,645
4,496,963 2,002,318 2,494,645
{4,496,963} {2,002,318} 2,494,645
4,496,963 2,002,318 {2,494,645)
4,496,963 2,002,318 {2,494,645}
$ - $ - ~ -
69

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THIS PEE 11~TEI~TIC~NÀLL~ LEST SLA(41K.

Page 289 of 362 ends

NONMAJOR GOVERNMENTAL FUNDS
Traffic Mitigation Fund
Gas Tax Fund
Description
Accounts for funds used to maintain the City's supply of affordable housing.

Accounts for traffic congestion relief funds received for street purposes.

Accounts for funds received and expended for street
maintenance as defined in the Streets and Highways Code.

Accounts for revenues and expenditures of Measure A funds.

Accounts for revenues and expendítures used for local
transportation funds.

Fund
Non-Major Funds:

Housing Fund
Measure A Fund
Local Transportation Fund
71

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C11`Y CAF BUELLTC)N
lC)NIVIAJC~R C~VERIVI~ENTAL FÜNCS
C{JMBll~ll~i BALAI~J~E SHEET
June 3C~, 2Ú21
Specie! Revenue Funds
Traffic Gas
N©using Ntitigatic~n Tax Measure A
Fund Fund Fund Fund
ASSETS
Cash and investments 491,13E $ 36,152 $ 475,141 $ E31,645 Accounts receivable 18,459 83,59
Interest receivable 179 13 176 255
Total assets 491,315 $ 3E,165 $ 493,77E 715,759
L1AB~LITIES AND FUND BALANCES
Liabilities:

Accounts payable - - $ 31,2EE $ -
Total liabilities 31,266
Fund Balances:

Restricted 491,315 3E,1E5 4E2,57a 715,759
Total fund balances 491,315 36,165 462,57© 715,759
Total liabilities and
fund balances 491,315 ~ 36,1E5 493,776 ~ 715,759
72

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Special Revenue Funds
Loca I
Transportation
$ 243,168 $ 1,877,242
102, 318
2,000 33,206
241,229 1,947,038
241,229 1,947,038
73

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~, ~ LJ ~
- _
l,~ub
CiTY C}E BI~ELLTotV
NC3NMAJ{~R ~f~VERNMENTAI. FUN[~S
CC)MBINING STATEMENT {~F REVENUES, EXPENaITURES, ANC~ ~HANGES IN FUNQ BAI~NCES F©r the Fiscal ~ear Ended June 3C~, 2Ci2~.

Special Revenue Funds
Traffic Gas
Nousin~ Mitivatinn Tax Maac~~r~ li
ReVenUeS:
licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Tatal revenues
Expenditures:

Public works
Total expenditures
Excess of revenues over
sunder} expenditures
other financing sources {uses}:

Transfers in
Transfers out
Total ether financing sources fuses}
Net change in fund balances
Fund balances -July 1
Fund balances -June 30
105 ~ - ~ -
299,666 425,069
217 301,013 427,504
123,591
123,591
217 177,422 427,504
~77,475) (11©,244}
~77,475} ~110,244}
~l l yy,J41 ~~. ~,~t~i1
~ 4~1,~15 ~ .~b,lb5 ~ LFb1,5lU ~ 115,15y
74

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Special Revenue Funds
Local
Transportation
$ - $ 105
4,687 729,422
90 5,226 735,566
22,000 145,591
22,000 145,591
(16,774) 589,975
74,500 74,500
55,326 474,356
75

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CITY OF BUELLTON

NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
Special Revenue Funds
Housing Fund Traffic Mitigation Fund
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Total revenues
Expenditures
Community development
Public works
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances -July 1
Fund balances -June 30
$ - $ - $ - $ - $ 105 $ 105
90 90
1, 200 1, 516 316
1,200 1,606 406 90 217 127
3,000 3,000
(1,800) 1,606 3,406 90 217 127
$ (1,800) 1,606 $ 3,406 $ 90 217 $ 127
76

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CITY OF BUELLTON

NONMAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2021
Special Revenue Funds
Gas Tax Fund Measure A Fund
Revenues
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Total revenues
Expenditures
Community development
Public works
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses):

Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances -July 1
Fund balances -June 3G
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
299,745 299,666 (79) 355,868 425,069 69,201
700 1,347 647 900 2,435 1,535
300,445 301,013 568 356,768 427,504 70,736
112, 000 123, 5 91 (11, 591)
112,000 123,591 (11,591)
188,445 177,422 (11,023) 356,768 427,504 70,736
(536,120) (77,475) 458,645 (589,093) (110,244) 478,849
,JJV,ILV~ 1/ /,4/J~ ~FJO,CJ~J (JO7,V7>~ ~11V,L~t~~ ~+/0,047 $ (347,675) 99,947 $ 447,622 $ (232,325) 317,260 $ 549,585 $ 715,759
77

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CHANGES IN FUND BALANCES -BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2t~21
Specie! Revenue Funds
Revenues
Licenses, permits, and fees
Intergovernmental
Charges for services
Use of money and property
Total revenues
Expenditures
Community development
Public works
Total expenditures
Excess of revenues over {under} expenditures
Qther financing sources {uses):

Transfers in
Transfers ©ut
Total ether financing sources {uses}
Net change in fund balances
fund balances -July 1
fund balances -June 30
l.acal Transp®rtati©n Fund Totals
Variance Variance
Positive Positive
Budget Actual {Negative) budget Actual {Negative
$ - $ - $ - ~ - $ 1úS ~ 105
54,404 4,687 {49,713) 71©,013 729,422 19,409
90 90
600 539 (61} 3,490 5,949 2,459
S5,(3Ú0 5,226 {49,774} 713,503 735,566 22,063
3,000 3,000
86,504 22,040 64,504 198,5Ú{a 145,591 52,909
86, 500 22,000 64, 50fl 201, 500 145, 591 55, 909
{31,504} {16,774} 14,726 512,(x43 589,975 77,972
74,504 74,544 74,540 74,500
{23,0ú{a} (2,400} 24,604 (1,14$,213} {190,119} 958,094
$ 20,ú00 55,326 ~ 35,326 $ (561,710) 474,356 $ 1,036,066 rllr Ir ~r+lllYlrllllli 11
1,472,682
~ 241,229 $ 1,947,038
+rr~14Y1 "" - 11 IM
78

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STA1'I~T1~AL 5ECi1C)N

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STATISTICAL SECTION
This part of the City of Buellton's comprehensive annual financial report presents detailed information as a context for understanding what the information in the fínancial statements, footnotes, and required supplementary information says about the City's overall financial health.

Contents Pa~es
Financial Trends
These schedules contain trend information to help the reader understand how the City's 80-89 financial performance and well-being have changed over time.

Revenue Capacity
These schedules contain information to help assess the government's most significant local 91-96 revenue sources.

Debt Capacity
These schedules contain information to help the reader assess the affordability of the City's 97-99 current levels of outstanding debt and the City's ability to issue additional debt.

Demographic and Economic Information
This schedule offers demographic and economic indicators to help the reader understand the 101 environment within which the City's financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the 102-107 information in the City's financial report relates to the services the City provides and the activities it performs.

Sources: U~ïless othe~~wise rïf~ted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
79

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City of Buellton, California
Net Position by Component
Last Ten Fiscal Years
(Fiscal year ended tune 30)
(Accrual basis of accounting)
Governmental activities
Net investment in capital assets $ 17,403,453 $ 17,650,808 $ 17,499,108 $ 18,152,109 Restricted 1,848,781 7,993,664 7,986,418 7,483,555
Unrestricted 11,014,594 5,323,390 5,301,357 4,312,758
Total governmental activities net position $ 30,266,828 $ 30,967,862 $ 30,786,883 $ 29,948,422 Business-type activities
Net investment in capital assets $ 5,563,438 $ 5,420,400 $ 5,555,611 $ 5,573,002 Restricted - - - -
Unrestricted 5,136,194 4,859,019 4,218,343 3,508,567
Total business-type activities net position $ 10,699,632 $ 10,279,419 $ 9,773,95~l- $ 9,081,569 Primary government
Net investment in capital assets $ 22,966,891 $ 23,071,208 $ 23,054,719 $ 23,725,111 Restricted 1,848,781 7,993,664 7,986,418 7,483,555
Unrestricted 16,150,788 10,182,409 9,519,700 7,821,325
Total primary government net position $ 40,966,460 $ 41,247,281 $ 40,560,837 $ 39,029,991 Source: City Finance Department
80

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$ 18,960,813 $ 19,488,470 $ 20,140,218 $ 20,170,546 $ 24,090,300 $ 23,695,943 1,202,636 1,508,316 1,286,965 1,645,445 1,472,682 1,947,038 4,204,654 4,324,620 5,823,737 7,709,927 5,792,942 6,881,867 $ 24,368,103 $ 25,321,406 $ 27,250,920 $ 29,525,918 $ 31,355,924 $ 32,524,848 $ 6,076,811 $ 5,644,028 $ 5,305,580 $ 5,129,815 $ 5,134,998 $ 5,035,332 - - - 306,934 306,934 -
3,308,675 3,715,375 4,318,616 4,785,860 5,064,985 5,985,765 $ 9,385,486 $ 9,359,403 $ 9,624,196 $ 10,222,609 $ 10,506,917 $ 11,021,097 $ 25,037,624 $ 25,132,498 $ 25,445,798 $ 25,300,361 $ 29,225,298 $ 28,731,275 1,202,636 1,508,316 1,286,965 1,952,379 1,779,616 1,947,038 7,513,329 8,039,995 10,142,353 12,495,787 10,857,927 12,867,632 $ 33,753,589 $ 34,680,809 $ 36,875,116 $ 39,748,527 $ 41,862,841 $ 43,545,945 81

Page 301 of 362 ends

City of Buellton, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended tune 30)
(Accrual basis of accounting)
2012 2013 2014 2015
Expenses
Governmental activities:

General government $ 1,484,345 $ 1,519,771 $ 1,771,834 $ 783,769 Community development 1,131,764 313,216 469,675 1,192,571 Culture and leisure 621,570 588,733 595,098 607,761
Public safety 1,350,473 1,872,020 1,792,569 1,801,989
Pubic works 862,578 1,526,752 2,568,183 1,959,864
Interest on long-term debt
Total governmental activities expenses 5,450,730 5,820,492 7,197,359 6,345,954 Business-type activities:

Water Utility 1,699,457 1,734,083 1,679,681 1,822,088
Wastewater Utility 771,940 847,522 453,728 957,261
Total business-type activities expenses 2,471,397 2,581,605 2,133,409 2,779,349 Total primary government expenses 7,922,127 8,402,097 9,330,768 9,125,303 Program revenues
Governmental activities:

Charges for services:

General government 1,712 3,975 51,250 9,095
Community development
Culture and leisure 59,786 231,337 271,231 306,560
Public safety 48,678 47,982 38,129 37,594
Public works 88,865 9,480 27,840 106,974
Operating grants and contributions 1,225,407 919,707 639,327 555,856 Capital grants and contributions
Total governmental activities program revenues 1,424,448 1;212)481 1,027,777 1,016,079 Business-type activities:

Charges for services:

Water utility 1,388,813 1,460,658 1,549,410 1,436,127
Sewer utility 597,963 649,703 695,725 734,289
Operating grants and contributions 462 3,250 1,699 293,817 Capital grants and contríbutions 34,720 36,380
Total business-type activities program revenues 2,021,958 2,149,991 2,246,834 2,464,233 Total primary government program revenues 3,446,406 3,362,472 3,274,611 3,480,312 Net (Expense)/Revenue
Governmental activities (4,026,282) (4,608,011) (6,169,582) (5,329,875) Business-type activities (449,439) (431,614) 113,425 (315,116) Total primary government net expense (4,475,721) (5,039,625) (6,056,157) (5,644,991) 82

Page 302 of 362 ends

$ 849,291 $ 1,784,167 $ 1,703,992 $ 1,940,530 $ 2,339,213 $ 2,004,116 1,115,702 364,935 342,972 641,947 776,855 899,797
523,974 790,357 796,225 808,482 839,109 967,345
1,808,093 1,922,881 1,919,643 1,996,688 2,207,959 2,349,126 1,358,122 1,722,304 1,717,639 1,6$1,687 1,779,746 2,489,793 645 875 600 390 11,063
5,655,182 6,585,289 6,481,346 7,069,934 7,943,272 8,721,240 1,947,565 1,955,852 1,986,774 2,157,262 2,317,545 2,250,890 1,025,834 1,099,822 1,192,648 1,206,734 1,249,792 1,161,838 2,973,399 3,055,674 3,179,422 3,363,996 3,567,337 3,412,728 8,628,581 9,640,963 9,660,768 10,433,930 11,510,609 12,133,968 10,260
52,400
272,682 226,932 236,551 193,581 143,841 180,216
39,875
72,234
544,749 1,405,359 1,003,979 1,210,580 2,196,978 1,557,864 992,200 1,632,291 1,240,530 1,404,161 2,340,819 1;738,080 1,426,171 1,917,538 2,470,525 2,557,878 2,590,392 2,681,691 727,810 855,684 1,091,370 1,231,024 1,203,524 1,223,684 824,934 75,950
224,907 295,197 32,861
2,978,915 2,998,129 3,857,092 3,897,713 3,793,916 3,905,375 3,971,115 4,630,420 5,097,622 5,301,874 6,134,735 5,643,455 (4,662,982) (4,952,998) (5,240,816) (5,665,773) (5,602,453) (6,983,160) 5,516 (57,545) 677,670 533,717 226,579 492,647
(4,657,466) (5,010,543) (4,563,146) (5,132,056) {5,375,874) (6,490,513) (continued)
83

Page 303 of 362 ends

City ©f E3ueiltan, Ca1if©rMia
Changes in Net Position, Continued
l.ast Ten ~iscal Years
{I~iSCa~ j/ear ended lune ~►~~
{Accrual basis vf acc©unting)
2012 2013 2014 2015
Continued from previous page:

General Revenues and Other Ganges
in Net Position:

Taxes:

Secured and unsecured property taxes
Sales and use tax
Transient lodging tax
Franchise taxes
Cïther taxes
Fines and forfeitures
Investment income
Other general revenues
Transfer from fiduciary activities
Transfer in bout)
Special item
Extraordinary item
Total governmental activities
Business-type activities:

Use of money and property
Other revenues
Transfer in {outs
Total business-type activities
Total primary government
Changes in Net Position
Governmental activities
Business-type activities
Total primary government
1,679,732 1,528,000 1,116,510 1,146,2$9
1,611,788 1,744,085 1,935,411 1,943,723
1,239,617 1,344,904 1,604,086 1,$30,275
202,981 207,922 216,444 41$,5$6
383,604 3$1,35$ 387,905 220,140
268,~80 102,197 41,160 107,$$5
579 1,192 54,257
59,073
626,822
~291,2$1}
5,095,121 5,309,045 5,9$8,603 5,721,155
14,519 11,401 7,932 $,146
~626,$22j
14,519 11,401 ~61$,$90~ $,146
5,109,640 5,320,446 5,369,713 5,729,301
1,068,$39 701,034 4180,979y 391,280
{434,920~ ~420,213} (505,465) (306,970)
~ 633,919 $ 2$0,$21 ~ ~6$6,444) $ $4,310
Source: City Finance Department

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2,396,533 1,297,795 1,450,412 1,508,895 1,599,958 1,670,306 2,044,067 2,521,898 2,342,222 2,700,680 2,536,781 2,934,332 1,783,807 1,938,720 2,832,056 3,114,194 2,548,842 3,020,078 434,866 221,847 250,259 260,841 299,751 330,044
223,302 43,555 32,858 37,757 48,143 37,456
25,396 23,097 19,341 15,972 8,654
104,364 142,325 169,108 278,929 465,400 124,175
39,300 11,372 8,155 20,134 8,210 27,799
(68) (760)
(7,943,576)
(917,337) 6,202,908 7,108,167 7,940,771 7,522,989 8,152,084 10,711 17,030 38,315 64,696 57,661 20,773
287,690
68 760
298,401 17,030 38,315 64,696 57,729 21,533
(618,936) 6,219,938 7,146,482 8,005,467 7,580,718 8,173,617 (5,580,319) 1,249,910 1,867,351 2,274,998 1,920,536 1,168,924 303,917 (40,515) 715,985 598,413 284,308 514,180
$ (5,276,402) $ 1,209,395 $ 2,583,336 $ 2,873,411 $ 2,204,844 $ 1,683,104 (concluded)

Page 305 of 362 ends

City of ~uellton, California
Fund balances, governmental Funds
Last Ten Fiscal ears
{Fiscal year ended June 3(~)
(Modified accrual basis of accounting}
2012 2013 2014 2015 2016
+General Fund;
Nflnspendable $ 114,737 $ 98,630 $ 267,916 211,871 $ 1,727 Restricted b, l 69,31 b í,173,04b 6,185,439
C©mmitted
Unassigned 11,334,055 5,829,005 6,050,021 6,482,765 6,733,906 Total genera( fund 11,448,792 12,O9ó,951 12,490,983 12,880,075 6,735,633 Act ©then +Governmental Funds;
1~©nspendable 200,000 201,667 1,667 1,667 1,667
Restricted 1,848,781 1,824,348 1,813,372 1,298,116 1,202,636 Unassigned {deficit} {277,578} {273,652} {245,469} {193,192} {158,287} Total all other governmental funds 1,771,203 1,752,363 1,Só9,570 1,106,591 1,046,016 Total act governmental funds 13,219,995 $ 13,849,314 ~ 14,060,553 ~ 13,986,6bó ~ 7,781,649 Source: City Finance Department

Page 306 of 362 ends

$ 26,036 ~ 116,087 $ 109,738 ~ 8,351 $ 111,901
1,338,606
6,939,241 8,311,826 10,291,995 8,4?8,906 8,21?,??2
6,965,2?? 8,427,913 10,401,733 8,487,257 9,ób8,279
1,667 1,667
1,508,31b 1,285,298 1,645,445 1,472,682 1,94?,038
(132,106} ( I 29,42?) { 103,453) { 103,254} { 103,160)
1,3?7,8?? 1,15?,538 1,541,992 1,369,428 1,843,87$
~ 8,343,154 ~ 9,585,451 ~
._-_._ .. ._. 11,943,725 $
I II 1 WWwYwY
9,856,685 $ 11,512,157

Page 307 of 362 ends

City of Buellton, California
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Modified accrual basis of accounting)
Revenues: 2012 2013 2014
Taxes $ 4,917,859 $ 5,246,898 $ 5,260,356
Licenses, permits, and fees 85,777 13,666 79,181
Intergovernmental 1,230,607 879,078 639,327
Charges for services 165,717 189,475
Fines and forfeitures 49,223 49,261 39,203
Use of money and property 525,508 162,312 108,775
Other 1,876 4,594 14,168
Total revenues 6,810,850 6,521,526 6,330,485
Expenditures:

Current:

General government 1,046,267 1,317,924 1,511,614
Community development 1,131,764 313,216 262,175
Culture and leisure 608,804 575,128 590,873
Public safety 1,350,473 1,872,020 1,792,569
Public works 660,515 1,303,965 1,225,306
Capital outlay 1,389,467 510,038 1,215,104
Debt Service
Principal
Interest
Total expenditures 6,187,290 5,892,291 6,597,641
Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity:

Revenues over (under) expenditures $ 623,560 $ 629,235 $ (267,156) Other financing sources (uses):

Write off of Advance to Successor Agency Private Purpose Trust Release of funds to Successor Agency Private Purpose Trust Proceeds from sales of assets
Transfer from Successor Agency Private Purpose Trust 59,073 Extraordinary loss on dissolution of redevelopment (291,281) Proceeds from capital lease
Transfers in 1,264,556
Transfers out (637,734)
Payment to Santa Barbara County (207,500)
l-otaí other financing sources (uses] (291,281) 478,395 Net change in fund balances $ 332,279 $ 629,235 $ 211,239 Debt service as a percentage of noncapital expenditures 0% 0% 0% Source: City Finance Department
::

Page 308 of 362 ends

1U,~54 Z1,U56 3Z,yZ3 Z6,3~36 15,704 9,430 13,7Z5
942,106 954,116 1,372,436 977,593 1,194,876 2,187,548 1,544,139 284,829 296,128 226,932 236,551 193,581 143,841 180,216 37,508 39,875 25,396 23,097 19,341 15,972 8,654
107,885 104,364 142,325 169,108 278,929 315,400 124,175 169,351 123,072 14,565 8,155 20,134 8,210 27,799
6,731,946 8,018,439 7,838,392 8,348,697 9,344,932 9,713,876 9,890,924 568,229 638,552 1,686,194 1,588,688 1,841,269 2,227,732 1,800,010 1,192,571 1,115,702 351,280 332,000 348,285 472,919 540,225 591,096 507,894 670,726 691,949 705,442 728,166 804,144 1,801,989 1,808,093 1,922,881 1,919,643 1,996,688 2,207,959 2,346,966 1,567,534 1,709,883 1,339,674 1,357,129 1,543,239 1,612,809 1,542,272 1,089,702 499,756 1,036,196 1,230,696 543,647 4,452,645 2,022,208 2,211 6,820 7,488 7,698 7,922
645 875 600 390 534
6, 811,121 6, 279, 880 7,009, 807 7,127, 800 6, 986, 65 8 11, 710, 318 9,064, 281 $ (79,175) $ 1,738,559 $ 828,585 $ 1,220,897 $ 2,358,274 $ (1,996,442) $ 826,643 (1,876,208)
(6,067,368)
5,288
16,359 21,400 829,589
1,256,482 557,213 51,500 1,388,849 734,024 2,488,326 2,076,818 (1,256,482) (557,213) (51,500) (1,388,849) (734,024) (2,488,394) (2,077,578) 5,288 (7,943,576) 16,359 21,400 (68) 828,829
$ (73,887) $ (6,205,017) $ 844,944 $ 1,242,297 $ 2,358,274 $ (1,996,510) $ 1,655,472 0% 0% 0% 0% 0% 0% 0%

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This page intentionally Jeff blank

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+City of Buellton, California
Assessed Value and Actual Value of Taxable Property
For the last ten fiscal years
City Farmer Redevelopment Agency
Taxable Taxable
Assessed Assessed Total Direct
Secured Unsecured Value Secured Unsecured Value Tax Rate FY 11-12 ~ 683,948,O7ú $ 58,34$,786 $ 742,296,856 1O8,2S7,121 $ 7,676,358 ~ 115,933,479 1.4úú% FY 12-13 677,670,315 56,809,979 734,480,294 1ú7,9O1,412 7,364,33£3 115,265,742 1.000% FY 13-14 693,882,411 58,627,154 7S2,5Ú9,565 1ú9,941,O37 7,636,523 117,577,566 1.úO4°l FY 14-15 715,256,461 48,0156,143 763,312,604 111,S2ú,186 7,764,135 119,584,321 1.000°I° FY 15-16 749,194,282 61,29ú,S14 810,484,796 H6,98ú,297 8,401,492 125,381,7$9 1.000°l FY 16-17 787,46ú,65ú 63,4ú4,T46 85ú,S65,396 122,962,55$ 8,346,976 131,3ú9,S34 1.úO0% FY 17-18 $60,755,629 65,148,26.4 925,903,893 154,527,980 9,6Sú,651 164,178,631 1.Oú0% FY 18-19 923,562,116 67,6(37,220 991,169,336 18ú,711,3ú1 1ú,4T9,421 191,190,722 1.Oú0% FY 19-20 978,634,993 69,160,163 1,047,795,156 212,503,289 10,544,416 223,047,705 1.úO0% FY 20-21 1,ú27,266,ú74 70,286,345 1,097,552,419 236,362,654 11,416,612 247,779,266 1.000°l° Note: In 1978 the v©tern of the Mate of California passed Proposition 13 which limited property taxes to a total maximum rate of 19'© based upon the assessed value of the property being taxed. Each year, the assessed value may be increased by an "inflation factor" (limited to a maximum of 2°~°}. V1/ith few exceptions, preperty is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Source: County of Santa Barbara Auditor-Controller's C3ffice

Page 311 of 362 ends

City of Buellton, California
C~irect and overlapping Property Tax Rates
For tl~e last ten fiscal years
Rate per $100 of assessed value
direct Rags Overlapping Rates
Buellton Union BuelltonUnien
Total School District School District
Basic Rate Direct 1992 2004
FY 11-12 1.000 1.000 0.0250 0.0288
FY 12-13 1.000 1.000 0.0250 0.0298
FY 13-14 1.000 1.000 0.0262 0.0304
FY 14-15 1.000 1,000 0.0270 0.0313
FY 15-16 1.000 1.000 0.0256 0.0313
FY 16-17 1.000 1.000 0.0256 0.0313
FY 17-18 1.000 1.000 - 0.0313
FY 18-19 1.000 1.000 - 0.0313
FY 19-20 1.000 1.000 - 0.0313
FY 20-21 1.000 1.000 - 0.0300
dote: In 1978, California voters passed Proposition 13, which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies whose boundaries include the subject property. do addition to the 1.00°~a fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of debt issued by the taxing agencies shown above.
source: County of Santa Barbara Auditor-Controller's Office

Page 312 of 362 ends

~Werlap~ing Rates
AHCC 8©nd
2t~~6
BuelltonUnien untaYnez Valley Tetal
Bch©rel ©istrict Hi~l~ cl~©al hand Tax Redevelflpment
2912 C~1E Rate ~4~ency

9.9259 - - 1.C~78~ -

9.Q~5fl - - ~..9~ ~~ -

9.fl~5{~ - - 1.{~~33 -

0.t~25ú - - 1.t~~19 -
t~.(~~S(~ - - 1.(~~ 19 -
c~.~z~s (~.9297 c~.c~~.~a 1,C}99~ -
~.c~~~~ 9.t~~97 r~.~~~s ~.~~~~. -

9.C~~19 ~.~~s~ a.c~~.~s ~..~~~.~ -
(~.{~219 ~.~~~~ ~.c~~.~~ 1.fl92~ -

Page 313 of 362 ends

1.7Í

0.9°l°

4.9 %

0.8Í

11.4%
City of Ruellton, California
Principal Pro~► erty Tax Payers -Secured Roll only
Current Year and Seven Years Ago
FY 2020-21 FY Zo14-15
Assessed °,~° of Assessed
Valuati©n Rank ~otal Va luation
$ 19,350,363 1 1.91 $ 15,198,273
16,673,055 2 1.6°~
16,302, / 39 ~ ~.~°ft~7
10,044,361 ~ 1.0%
9,879,883 5 1.0°l° 8,578,224
9,816,172 ~ 1.oÍ
8,422,834 7 o.8°r~ 7,424,283
`
7,813,069 8 0.8°~ 6,965,746
1,~.1.~,~~`t J 1J.7°ft~
7,036,131 1 t~ ~. 7~° ~, 2 77, 244
- - - 12,390,578
- - - 6,774,328
- - - 6,300,000
- - - 5, 899,12 7
- - - 5,399,500
1,027,266,074 11.oÍ 715,256,461
Property Owner
FPA Flying Flags Associates, LP
(Jcean Park Hotels-B~.T, L~
Chumash Buellton Apartments, ~~C
RTA Buellton Hotel, ~~C
Kang Family Partners
VV Acquisition company, LAC
Buellton Self-Storage, LP
aywine, L~~
Richl
"
ynd, ~.~~
i~©S ~111/C)S i~ilead©ws, ~~~
C~ak Springs Village Properties ~~C
Santa ynez Valley Properties, L.P
ABS CA-~ ~L~
Santa Ynez Self Storage, ~.~C
Buellton Village tenter ~1.~
Source; bounty of Santa Barbara Auditor-controller's office

Page 314 of 362 ends

City of Buellton, California
Schedule of Top 25 Principal Sales Tax Remitters (listed in alphabetical order) Current Year and Five Years Ago
Apr-June 2021 Jan-March 2016
Airstream of Santa Barbara by Sky River AJ Spurs Saloon &Dining Hall AJ Spurs Saloon &Dining Hall Albertsons
Albertsons Andersons Pea Soup
Buellton Shell Buellton Shell
Buellton Mobil Buellton Mobil
Chevron Chevron
Consery Fuel Coast Auto Sales
CVS Pharmacy Consery Fuel
Eagle Energy 76 CVS Pharmacy
Farm Supply Eagle Energy
Go Wireless Farm Supply
Habit Burger Grill Firestone Walker Brewing
Industrial Eats Industrial Eats
Jim Vreeland Ford Jim Vreeland Ford
McDonalds McDonalds
O'Reilly Auto Parts Platinum Performance
Platinum Performance Platinum Performance Vet
Rio Vista Chevrolet Rio Vista Chevrolet
Taproom & Barrelworks Santa Ynez Valley Marriott
The Hitching Post II Sky River RV
Toms Gas &Market TP rra1/ant 1AJinA
T ~~actor Supply Tesoro Refining ~ ÏvÍarketing
iJSA Gasoline The Hitchïng Post II
Wild Wood Door Factory Todd Pipe &supply
Wonderful Wine Co Toms Gas &Market
Note: The lists above includes both public and private entities for the most recent and prior comparable period available and therefore the dollar values have been omitted because the information is not public information. Rankings are determined by the sales dollar amount.

Source: City Finance Department
95

Page 315 of 362 ends

Amount
City of Suellton, California
Properly Tax .eyries and Callecti©ns
For the last ten fiscal years
Co##ected within the
Tota#Co##ectians
Fiscs#Year of the levy Co##ections
Finca#
Year
Ended
June 30,
2012
2013
2014
2015
2010
2011
2018
2019
2020
2021
Taxes levied
Countywide for the
Fu## Cash ~/a#ue Fiscs# Year*
. ~ • : ! 1i .~
i ~ ~ ~ • ~ ~ ~ ~ ~ #1 • !
. •
~~ ~ ~~~ ~ T ~ ~ .
~
•` ~•i '~ ~
~,~ : .. ~# ;~
~ ~ : ~ .
~ ~ •: ~~ s ~ i• ~~`
• ~ ~ ~ ~ ~ • •
: ~.~~ ~► ~ ~
~ • ~ ~ ~ ~ • ~ ~
• ~ '~ . ! 1i ~1:

99.01 10,607 1,097,771

99.21 8,377 1,117,975

99. 21 8, 744 1,13 6,413

99.01 8,896 1,206,686

99.21 7,502 1,264,366
98,81 11,647 1,381,765

98.9~ 11,353 1,477,9$5

98.61 13,798 1,564,165

98.61~ - 1,629,118
100.01
100.01
100.01

99.91 99.7%

99.81 99.7°l

99.6/

99.5%

98.6,/
Percentage in Subsequent Percentage
of levy Years Amount r .

Source: Santa Barbara County Auditor-Contro##er's office dote: For the fisca#year ended June 30, 2021 as of 630/21

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City of Buellton, California
Direct and Overlapping Debt
Current Year
June 30, 2021
2020-21 Assessed Valuation: $ 1,097,552,419
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:

Allan Hancock point Community College District - GO Bonds Santa Ynez Valley High Schoo! District -Bond
Buellton Union School District - GO Bonds and Bond Anticipation Notes

TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Santa Ynez Valley Union High School District -Certificates of Participation Santa Barbara County Certificates of Participation
City of Buellton Capital Leases Payable

TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT

COMBINED TOTAL DEBT
Estimate Share
Debt Outstanding (1) %Applicable (2} of Debt
$ 133,075,433 3.694% $ 4,915,938
1,193,500 14.685% 175,261
5, 718, 000 73.130% 4,181, 546
139,986,933 9,272,745
1,537,000 14.685% 225,702
148,966,000 1.207% 1,797,474
835,209 100.000% 835,209
151,338,209 2,858,385
$ 12,131,130 (3)
(1) Bond Principal Balance estimated as of 6/30/2021, Certificate Balance estimated as of 6/30/21 (2) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total assessed value.
(3) Excludes tax and revenue anticipation notes, ente~-p~-ise i-eveiiue and mortgage revenue bonds and non-bonded cease obligations.

Ratios to 2020-21 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 0.84%
Combined Total Debt 1.11%
Source: Santa Barbara County Auditor-Controller's Office 97

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City of Buellton, California
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollars in thousands)
2012 2013 2014 2015
Assessed Value $ 683,948,070 $ 677,670,315 $ 693,882,411 $ 715,256,461 Conversion Percentage 25% 25% 25% 25%
Adjusted Assessed Value 170,987,018 169,417,579 173,470,603 178,814,115 Debt Limít Percentage 15% 15% 15% 15%
Debt limit 25,648,053 25,412,637 26,020,590 26,822,117
Total net debt applicable to limit - - - -
Legal debt margin $ 25,648,053 $ 25,412,637 $ 26,020,590 $ 26,822,117 Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0%
Notes: The Government Code of the State of California provides for a legal debt limit of 15% of grossed assessed secured tax valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of the assessed value for each fiscal year from the current full valuatíon perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

The City does not have any outstanding general obligation debt subject to the limit.

Source: City Finance Department

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City of Buellton, California
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Income
Santa Barbara County
Year Population ~1~ (in thousands) ~2~
Per Capita
Personal Income Unemployment Rate
Santa Barbara County ~ 3~ Santa Barbara Co u my ~4~
2012 4,858 $ 19,000,000 $ 44,500 7.9%
2013 4,863 19,300,000 45,000 6.3%
2014 4,893 20,600,000 47,600 5.4%
2015 4,931 21,706,000 49,600 4.7%
2016 4,957 22,300,000 49,900 4.9%
2017 5,129 24,200,000 53,700 4.3%
2018 5,291 25,000,000 55,100 3.9%
2019 5,453 26,646,853 58,600 3.5%
2020 5,464 27,992,849 62,000 11.6%
2021 5,435 29,502,767 66,900 5.9%
Notes:
~` ~` information presented is for the Santa Barbara Co~~nty Region] except for population data which relate to the City's population, since separate data is not available for the City of Buellton.

Sources:
(1) California Department of Finance, numbers are based on January 1, 2021 {2~ U.S. Dept. of Commerce Bureau of Economic Analysis. ~ 3} U.S. Dept. of Commerce Bureau of Economic Analysis. (4~ State of California Employment Development, Department, as of June 2021 100

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City of Buellton, California
Full-time and Part-time City Employees by Function (Full Time Equivalent) Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government
- City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 - City Clerk / H R 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - City Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - City Attorney * - - - - - - - - - -
- Finance 3.00 3.00 3.28 4.05 3.55 3.55 3.55 3.55 3.55 3.20 Community Development
- Planning 3.19 3.10 3.16 2.45 2.45 2.45 2.27 3.27 3.27 3.33 Culture and Leisure
- Parks &Recreation 3.61 3.97 5.09 6.65 6.60 7.80 5.53 5.14 6.14 4.93 - Library ** - - - - - - - - - -
Public Safety
- Police *** - - - - - - - - - -
- Fire **** - - - - - - - - - -
Public works
- Street Lights - - - - - - - - - -
- Engineering - - - - - - - - - -
- General 7.40 7.00 9.05 8.80 8.80 8.80 8.61 7.18 7.18 8.86 Total 24.20 24.07 27.58 28.95 28.40 29.60 26.96 26.14 27.14 27.32 Note:
* Starting in FY2009 the City Attorney is contract personnel . ** The City of Buellton contracted with City of Santa Barbara Library System to manage the Buellton Branch of the County Library.
*** Contract with Santa Barbara County Sheriff Department for law enforcement services. **** Contract with Santa Barbara County Fire Department to provide staffing at County Fire Station 31 in Buellton.

Source: City Finance Department
102

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City of Buellton, California
Operating Indicators by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police
- Arrests 260 231 147 127 107 176 172 186 209 214
- Non-criminal Citations 292 348 768 667 402 693 211 318 256 134 Total Police Actions 552 579 915 794 509 869 383 504 465 348 Fire **
- Number of CallsferService 526 777 538 796 479 577 602 675 699 680 - Emergency Cal I Responses 197 186 351 508 492 * * * * * - Fire Prevention Activities 19 21 14 29 55 81 336 23 NA NA Total Fire Actions 742 984 903 1,333 1,026 658 938 698 699 680 Planning Permits:
- Certificate of Compliance - - - - - _ _ _ _ _
- Conditional Use - 2 1 - 3 - 1 1 1 2
- Development Plan Modification - - - 1 1 2 2 - 1 1
- Final Development Plan 2 1 5 3 2 3 2 1 1 2
- General Plan Amendment - - - 3 - 1 - - - -
- Preliminary Development Plan - 1 - - - - - - _ _
- Home Occupation 5 3 4 7 7 7 6 3 3 6
- Land Use Exemption 49 48 68 63 87 77 110 78 75 106
- Lot Line Adjustment - - 2 - - 3 1 2 1 -
- Minor Use Permit - - - 1 2 1 - - - 2
- Sign Ordinance Exemption 1 2 - 1 1 1 - - - -
- Specific Plan - 1 - - - 1 - - - -
- Time Exténsicins - 2 2 - - - - 3 2 3
- Tentative Parcel Map 1 - - - - 1 1 - - 1
- Tentative 1-ract Map - - 1 - 1 1 - - - 1
- Variance - - - - _ _ _ _ _ _
- Zoning Clearance 42 41 27 38 69 75 63 68 30 48
- Zoning Ordinance Amendment 1 - 1 1 2 - 1 - 4 1
Total planning actions 101 101 111 118 175 173 187 156 118 173 *Police services are provided by the Santa Barbara County Sheriff's Office. ** Fire services are provided by the Santa Barbara County Fire Department *** FY2017 and forward: Number of Calls for Service includes all Emergency Cal! Responses

1. FY2012 data is for Oct 2011 -June 2012 activities

2. FY2015 data is for July 2013 -Dec 2013 &Apr 2015 -June 2015 NA indicates the information is not available.

Source: City Finance, Public Works and Planning Departments 103

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City of Buellton, California
Capital Asset Statistics by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2012 2013 2014 2015 2016
Police *:

Stations 1 1 1 1 1
Fire
Fire stations ? 1 ~. 1 1
Public works
Streets (miles) 22 22 22 22 22
Streetlights 64 64 64 64 64
Parks and recreation
Parks 2 2 4 4 4
Sewer
Sanitary sewers (miles) 18 18 18 18 18
Number of pump stations 2 2 2 2 2
Wastewater treatment plant 1 1 1 1 1
Water
Water lines 27 27 27 27 27
i~iells ~ S S 5 5
vvài~ï' tr`'eatrilérit ~ïiarït5 2 2 2 L 2
Reservoirs 3 3 3 3 3
* Services are provided by the County or Special Districts, which are separate from the city. The data provided are for those portions of the system located within the City of Buellton.

Source: City Finance, Public Works and Planning Departments 104

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2017 2018 2019 2020 2021
1 1 1 1 1
1 1 1 1 1
22 22 22 22 22
64 91 91 91 91
4 4 4 5 S
18 18 18 18 18
2 2 3 3 3
1 1 1 1 1
27 27 27 27 27
5 5 5 6 6
2 2 2 2 L ~
3 3 3 3 3
105

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City of Ewell#on, California
capital Arse# Statistics by funds
E.as# Ten fiscal Years
{fiscal year ended June o~
Governmental-type
.and
Constructs on-i n-progress
Buildings and improvements
Equipment
Infrastructure
Total
Accumulated depreciation
Total Accumulated depreciation
Total governmental net capital assets
Business-type Activities
hand
Construction-i n-progress
Buildings and improvements
Equipment
Infrastructure
Total
Accumulated depreciation
Total accumulated depreciation
Total Business-type net capital assets
$ 1,536,248 $ 1,536,248 $ 1,536,248 ~ 1,536,248
4, 2 21, 448 4, 2 21, 448 4, 2 21, 448 4, 2 21, 448
385,766 425,998 444,765 528,Q43
15,815,655 16,279,484 16,364,557 17,367,786
21,959,117 22,463,178 22,567,Q18 23,653,525
~4,555,664~ {4,812,37Q) {5,Q67,91Q} {5,5Q1,416~
17,4Q3,453 17,65Q,8Q8 17,499,1Q8 18,152,1Q9
~ 247,691 ~ 247,691 $ 247,691 $ 247,691
574,387 574,387 574,387 574,387
582,952 74Q,718 773,522 815,8QQ
• ~~ • s ~`~~ ~ ~ R •j i►
~ J,~b~,~#.~t5 ~ ~,4~U,4Ut~ ~ 5,555,b11 ~ ~,~ I~,UU~
Source: City Finance C~epartment

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2516 2517 2518 ~~~~ 2525 2521
$ 1,535,248 $ 1,827,156 $ 1,827,156 $ 1,827,166 $ 2,639,835 $ 2,639,835 337,960
5,856,438 5,829,209 5,896,731 5,508,444 7,927,547 7,975,931 598,224 632,269 ~72,595 672,095 754,825 735,716
15,939,554 17,554,235 18,658,272 19,590,255 25,7 f Ci,CJ`TiJ ~~,~✓~,`~~~ 24,885,514 ~5p~.aï~,t,.~d ~# ~~,1.d5~é',~~y3' ~~,5~i,~~~ ~C.,~„i5`./,55~ ~Y,V~~,f ~"t' {5,919,751) {5,395,256} ~6,885,318} ~ I,"tV~,~~S~ ~~,J"fi~,~.l.~I'~ ~J,~V~,~J~~ 18,965,813 19,552,618 ~~,158,946 25,191,786 24,~~~,842 24,869,~~~ $ 247,691 $ 247,591 $ 247,591 ~ 247,691 ~ 247,691 $ 247,691 1,365,319
574,387 574,387 574,387 574,387 574,387 574,387
894,291 897,357 955,225 955,225 910,058 851,814
12,451,313 12,575,229 12,753,856 12,978,756 13,415,422 13,639,527 14,167,582 14,289,674 14,431,164 14,705,554 15,147,568 16,688,238 {8,095,871~ (8,645,646j {9,125,584) {9,576,239) {15,012,570) ~10,397,929) ~ 6,076,811 ~ 5,544,528 ~ 5,355,580 $ 5,129,815 ~ 5,134,998 $ 6,29t~,359

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GLOSSARY and ACRONYMS

GLOSSARY OF TERMS
Accounting System The total structure of records and procedures which identify, record, classify, summarize and report information on the financial position and results of operations of a government.

Accrual Accounting Basis of accounting used in proprietary fund types (enterprise and Internal Service funds) and in government-wide financial statements; statements include all economic resources of fund, including capital assets and long-term debt.

Adoption Formal action by the City Council, which sets the spending plan for the fiscal year.

Appropriation A legal authorization granted by the City Council to expend monies, and incur obligations for specific purposes.

Assessed Property Value The dollar value set upon real estate or other property by the County Assessor.

Audit A view of the City's accounts by internal audit staff or an independent auditing firm to substantiate fiscal year-end fund, salaries, reserves, and cash on hand.

Balanced Budget A budget with no budget deficits, but could possibly have a budget surplus.

Bonds A certificate of debt issued by an entity, guaranteeing payment of the original investment, plus interest, by a specified future date.

Budget An annual financial plan that identifies estimated revenues, specific types and levels of services to be provided, and establishes the amount of money which can be spent.

Budgetary Control The control or management of a government or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available
appropriations and revenues.

CalPERS The California Public Employees’ Retirement System (CalPERS) is an agency in California that manages pension and health benefits to its 2 million members. Members include school, public agency and state members.

Capital Improvement Plan (CIP) Annual appropriations in the City's budget for capital improvement projects such as street or park improvements, building construction, and various kinds of major facility

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GLOSSARY and ACRONYMS
maintenance. Capital improvement projects are supported by a five-year expenditure plan, which details funding sources and expenditure amounts. They are often multi-year projects which require funding beyond the one-year period of the annual budget.

Consumer Price Index (CPI) A statistical description of price levels provided by the U.S.

Department of Labor. The change in this index from year to year is used to measure the cost of living and economic inflation.

Contingency A budgetary reserve set aside for emergency or unanticipated expenditures, revenue shortfalls and/or unknown expenditures; also referred to as appropriated reserves.

Debt Service The payment of principal and interest on borrowed fund, such as bonds.

Deficit An excess of expenditures or expenses over revenues.

Departments/Divisions/Activities The budget organizes departmental expenditures into functional budget/organizational units called divisions. Each division contains an "activity summary" which describes the major services being provided and the personnel/financial resources required to provide the service.

Depreciation An accounting method of allocating the cost of a tangible or physical asset over its useful life or life
expectancy. Depreciation represents how much of an asset's value has been used up.

Enterprise Fund A type of fund established for the total costs of those governmental facilities and services which are operated in a manner similar to private enterprises. These programs are entirely or predominantly self-supporting. The City enterprise funds are the water and sewer funds.

Expenditure The actual payment for goods and services.

Franchise Fee A regulatory fee charged to utility companies for the privilege of doing business in the City of Buellton. For example, Comcast, Marborg, PG&E and SoCal Gas.

Fiduciary Fund Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations other governmental units and other funds. These include pension (and other employee benefit) trust funds, investment trust funds, private-purpose funds, and agency funds.

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GLOSSARY and ACRONYMS
Fiscal Year The period designated by the City for the beginning and ending of financial transactions. The City of Buellton's fiscal year begins July 1 and ends June 30 of each year.

Fringe Benefits These include employee retirement, health, dental and vision insurance, workers compensation, uniforms and deferred
compensation plans.

Full-time Equivalence (FTE) The hours worked by one employee on a full-time basis. The concept is used to convert the hours worked by several parttime employees into the hours worked by full-time employees.

On an annual basis, an FTE is considered to be 2,080 hours, which is calculated as: 8 hours per day x 5 work days per week.

Fund An accounting entity with a set of self-balancing revenue and expenditure accounts used to record the financial affairs of a governmental organization.

Fund Balance The difference between the assets (revenues and other resources) and liabilities (expenditures incurred or committed to) of a particular fund. Accumulated surplus of revenue over expenditures (equity) in the governmental funds.

Generally Accepted Accounting
Principles (GAAP) Uniform minimum standards and guidelines for accounting and reporting. These standards govern the form and content of the annual financial statements of an entity. The primary
authoritative body on the application of GAAP to state and local governments is the Governmental Accounting Standards Board (GASB).

General Fund The fund used to account for all financial resources except those required to be accounted for in another fund (e.g., enterprise or grant funds). Usually, the General Fund is the largest fund in a municipality.

Grants Contributions of cash or other assets from another governmental agency to be used or expended for a specified purpose, activity or facility.

Infrastructure Facilities on which the continuance and growth of a community depend, such as roads, water lines, sewers, public buildings, parks and so forth.

Interfund Transfer Money transferred into another fund to finance operations or capital projects.

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GLOSSARY and ACRONYMS
Lease-Purchase Agreement Contractual agreements which are termed leases, but whose lease amount is applied to the purchase.

Levy (verb) To impose taxes, special assessments or service charges for the support of governmental activities; (noun) The total amount of taxes, and/or special assessments and/or service charges imposed by a governmental agency.

Long-Term Debt Debt with a maturity of more than one year after the date of issue.

Maintenance of Effort (MOE) The required amount of discretionary expenditures to maintain city streets and roads.

Major Fund Funds whore revenues, expenditures/expenses, assets or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or
enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds.

Modified Accrual Basis of accounting used in governmental funds which focuses on current, available resources or a “working capital” approach; fund statements exclude long-term capital assets and debt.

Municipal Code City Council approved ordinances currently in effect.

Objective Desired output oriented accomplishments which can be measured and achieved within a given time frame.

Objects of Expenditure The individual expenditure accounts used to record each type of expenditure City operations may incur. For budgeting purposes, objects of expenditure are categorized into groups of similar types of expenditures called major categories of expenditure.

The principal objects of expenditure used in the budget are:
 Employee Services - Salaries and fringe benefits paid to City employees. Includes items such as vision, health, dental insurance, retirement and deferred compensation.
 Operating and Maintenance Charges - Supplies and other materials and services used in the normal operations of City departments. Includes items such as books, chemicals and construction materials, consultant contracts and internal service fund charges, advertising, travel and utilities.
 Minor Capital Outlay - A budget category which budgets all equipment having a unit cost of more than $500 and an

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GLOSSARY and ACRONYMS
estimated useful life of more than one year. This includes furniture, automobiles, machinery, equipment and other
relatively minor fixed assets.

Operating Budget Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing acquisition, spending and service delivery activities of a government are controlled.

Operating Expenditures Expenditures for salaries, material and supplies, services which are ordinary through its normal operations.

Operating Revenue Annual income received by the City through sources such as taxes, fines, fees, grants, charges for current services or other revenues that can be used to finance operations or capital assets.

Ordinance A formal legislative enactment by the governing board (City Council) of a municipality. If it is not in conflict with any higher form of law, it has the full force and effect of law within the boundaries of the municipality to which it applies.

Performance Measure Achievement of the objective/advances the organization has towards a corresponding goal.

Reserve An account used to record a portion of the fund balance as legally segregated for a specific use.

Resolution A special or temporary order of a legislative body requiring less formality than an ordinance.

Special Revenue Funds Revenues are restricted/committed for specific purposes (other than debt or capital). Ex. Gas Tax and Measure A.

Taxes Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include charges for services rendered only to those paying for such charges as sewer or water service.

Transfers In/Out Payments from one fund to another fund, primarily for work or services provided.

Unfunded Accrual Liability (UAL) (UAL) obligation represents the market value of the assets. minus the discounted value of the future liabilities. When a plan or pool's Market Value of. Assets is less than the
Actuarial Accrued Liability, the difference is the plan or pool's UAL.

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GLOSSARY and ACRONYMS

ACRONYMS
ACFR Annual Comprehensive Financial Report
CalPERS California Public Employees’ Retirement
System
CERT Community Emergency Response Team
CIP Capital Improvement Plan
CJPIA California Joint Powers Insurance
Authority
COLA Cost of Living Adjustment
COPS Citizens’ Option for Public Safety
DCP Deferred Compensation Plan
FEMA Federal Emergency Management Agency
FOG Fats, Oils and Grease
FTE Full-time Equivalence
FY Fiscal Year
GAAP Generally Accepted Accounting
Principles
GASB Governmental Accounting Standards
Board
GFOA Governmental Finance Officers
Association of the United States and
Canada
HSC Healthy and Safety Code
IWD Industrial Waste Discharge
LAFCO Local Agency Formation Commission
LAIF Local Agency Investment Fund
LTF Local Transportation Fund
MC Medicare
MOE Maintenance of Effort
NPDES National Pollutant Discharge Elimination
System
OPEB Other Post-Employment Benefits
RDA Redevelopment Agency
RMRA Road Maintenance and Rehabilitation
Account
SB1 Senate Bill No.1: Road Repair and
Accountability Act of 2017
SBCAG Santa Barbara County Association of
Governments
SCADA Supervisory Control and Data Acquisition
SEMP Socio-Economic Mitigation Program
SGMA Sustainable Groundwater Management
Act
SS Social Security
STA State Transit Assistance
TDA Transportation Development Act
TOT Transient Occupancy Tax
UAL Unfunded Accrued Liability
VLF Vehicle License Fee
WTP Water Treatment Plant
WWTP Wastewater Treatment Plant

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Buellton City CouncilFebruary 24, 2022

Buellton City Council
February 24, 2022