Buellton City Council
March 9, 2023

CITY OF BUELLTON

CITY COUNCIL AGENDA
Regular Meeting of March 9, 2023 – 6:00 p.m.

City Council Chambers, 140 West Highway 246
Buellton, California
Council meetings will be conducted in person and the public is welcome to attend.

Written comments will not be read aloud but can be sent to the City Council via email at [email protected] (please reference agenda item number/subject matter, and include your name and address). The public can observe Council meetings via City TV Live Stream at:
http://www.cityofbuellton.com/government/cityTV.php
Members of the public can observe and address the meeting electronically by clicking here.

CALL TO ORDER
Mayor Dave King

PLEDGE OF ALLEGIANCE

ROLL CALL
Council Members, Hudson Hornick, Elysia Lewis, David Silva, Vice Mayor John Sanchez, and Mayor Dave King

REORDERING OF AGENDA
PUBLIC COMMENTS Speaker Slip to be completed and turned in to the City Clerk prior to commencement of meeting. Any person may address the Council on any subject pertaining to City business, including all items on the agenda not listed as a Public Hearing, including the Consent Agenda and Closed Session. Limited to three (3) minutes per speaker. By law, no action may be taken at this meeting on matters raised during Public Comments not included on this agenda. Public Speakers using a translator are allotted a total of six (6) minutes to speak, unless simultaneous translation equipment is used.

CONSENT CALENDAR (ACTION)
The following items are considered routine and non-controversial and are scheduled for consideration as a group. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Members of the Public may speak on Consent Agenda items during the Public Comment period.

1. Minutes of February 23, 2023 Regular City Council Meeting

City Council Meeting Agenda Page 2 March 9, 2023

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2022/2023

3. Monthly Treasurer’s Report - January 31, 2023
 (Staff Contact: Finance Director Shannel Zamora)

PRESENTATIONS

PUBLIC HEARINGS

COUNCIL MEMBER COMMENTS/ITEMS

WRITTEN COMMUNICATIONS
Written communications are included in the agenda packets. Any Council Member, the City Manager, or City Attorney may request that a written communication be read into the record.

COMMITTEE REPORTS This Agenda listing is the opportunity for Council Members to give verbal Committee Reports on any meetings recently held for which the Council Members are the City representatives thereto.

BUSINESS ITEMS (POSSIBLE ACTION)

4. Discussion and Direction for Funding Buellton Senior Center  (Staff Contact: Finance Director Shannel Zamora)

5. Discussion and Possible Direction Regarding Code Revisions for Appeals of Land Use Decisions
 (Staff Contact: City Attorney Greg Murphy)

6. Review of Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ended June 30, 2022
 (Staff Contact: Finance Director Shannel Zamora)
CITY MANAGER’S REPORT

CLOSED SESSION ITEMS (POSSIBLE ACTION)

7. Closed Session - California Government Code Section 54957 regarding:

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: City Manager

8. Closed Session - California Government Code Section 54956.9(d)(4) regarding:

POTENTIAL INITIATION OF LITIGATION (1 matter)

9. Closed Session – California Government Code Section 54956.9(d)(1) regarding:

EXISTING LITIGATION (1 matter): City of Buellton v. Thrifty Oil Co., et al.; Santa Barbara County Superior Court Case No. 21CV02778

City Council Meeting Agenda Page 3 March 9, 2023

ADJOURNMENT
The next regular meeting of the City Council will be held on Thursday, March 23, 2023 at 6:00 p.m.

City Manager Review: SW
Council Agenda Item No.: 1

CITY OF BUELLTON

CITY COUNCIL MEETING MINUTES
Regular Meeting of February 23, 2023
City Council Chambers, 140 West Highway 246
Buellton, California

CALL TO ORDER
Mayor King called the meeting to order at 6:00 p.m.

PLEDGE OF ALLEGIANCE

ROLL CALL

Present: Council Members Hudson Hornick, David Silva, Vice Mayor John Sanchez, and Mayor Dave King

Absent: Council Member Elysia Lewis
Staff: City Manager Scott Wolfe, Planning Director Andrea Keefer, Finance Director Shannel Zamora (via Zoom), City Clerk Linda Reid, City Attorney Greg Murphy, and Public Works Director Rose Hess

REORDERING OF AGENDA
None

PUBLIC COMMENTS
Pam Gnekow, Executive Director of the Buellton Senior Center announced that the Senior Center has partnered with Santa Barbara Cancer Foundation to help patients with their nutritional needs. Ms. Gnekow also announced that Santa Ynez Valley Community Outreach is hosting “March for Meals” on March 17 at the Maverick Saloon and “National Vietnam Veterans Day” on March 29 on the Avenue of Flags and provided handouts detailing both events.

Ms. Gnekow requested advance funding for the Senior Center due to the lack of funding at this time of year. The City Council agreed by consensus to bring this request back for discussion at the next Council meeting.

City Council Meeting Minutes Page 2 February 23, 2023

CONSENT CALENDAR

1. Minutes of February 9, 2023 Regular City Council Meeting

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2022/2023

3. Financial Report for the Second Quarter Ending December 31, 2022 MOTION:

Motion by Vice Mayor Sanchez, seconded by Council Member Silva, approving Consent Calendar Items 1 through 3 as listed.

VOTE:

Motion passed by a roll call vote of 4-0.

Council Member Hornick - Yes
Council Member Silva – Yes
Vice Mayor Sanchez – Yes
Mayor King - Yes

PRESENTATIONS
None

PUBLIC HEARINGS
None

COUNCIL MEMBER COMMENTS/ITEMS
Mayor King stated there would be a change to the Library renovation, which will be discussed at a future Council meeting.

WRITTEN COMMUNICATIONS
None

COMMITTEE REPORTS
Vice Mayor Sanchez announced that he attended the Central Coast Water Authority (CCWA) meeting and provided an oral report for the record.

Vice Mayor Sanchez announced that he attended the Buellton Chamber of Commerce and Visitors Bureau board meeting and provided an oral report for the record.

City Council Meeting Minutes Page 3 February 23, 2023
Mayor King announced that he and Vice Mayor Sanchez attended the Santa Barbara County Association of Governments (SBCAG) meeting and provided an oral report for the record.

Mayor King stated that he and Vice Mayor Sanchez attended the Annual Awards Ceremony at Vandenberg Space Force Base.

BUSINESS ITEMS

4. Review of Design and Budget for 202 Dairyland Road
MOTION:

Mayor King motioned to table Item 4 to allow staff additional time to review alternative options for the Library renovation. The motion was seconded by Council Member Hornick.

VOTE:

Motion passed by a roll call vote of 4-0.

Council Member Hornick - Yes
Council Member Silva – Yes
Vice Mayor Sanchez – Yes
Mayor King - Yes

5. Resolution No. 23-02 - “A Resolution of the City Council of the City of Buellton, California, Regarding Mid-Year Budget Amendments for FY 2022-23” RECOMMENDATION:

That the City Council consider adoption of Resolution No. 23-02.

STAFF REPORT:

Finance Director Zamora presented the staff report.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

SPEAKERS/DISCUSSION:

The Council questioned the sustainability of the wastewater fund.

Laura Romano Defazio, Buellton, questioned what type of analysis model the City will use to perform the wastewater rate study.

MOTION:

Motion by Council Member Hornick, seconded by Council Member Silva, adopting Resolution No. 23-02 – “A Resolution of the City Council of the City of Buellton, California, Regarding Mid-Year Budget Amendments for FY 2022-23”

City Council Meeting Minutes Page 4 February 23, 2023
VOTE:

Motion passed by a roll call vote of 4-0.

Council Member Hornick - Yes
Council Member Silva – Yes
Vice Mayor Sanchez – Yes
Mayor King - Yes

6. Establishment of City Council Priorities for the Year 2023-24 RECOMMENDATION:

That the City Council identify and adopt additional priorities for 2023-24.

STAFF REPORT:

City Manager Wolfe presented the staff report.

SPEAKERS/DISCUSSION:

The City Council discussed the existing list of City Council priorities and added additional priorities for 2023-24 as follows:
• Public safety systems throughout the City
• Avenue of Flags development (Specifically Median Three) • Broadband access
• Playground structures and exercise equipment at City Parks • Trails and other recreational activities
• Green energy systems
• Social services for residents
• Cameras throughout the City to promote public safety
• Truck parking in front of Ellen’s Pancake House
• Promoting additional electric charging stations throughout City • Widening McMurray Road
DOCUMENTS:

Staff report with attachments as listed in the staff report.

DIRECTION:

The City Council agreed by consensus to continue to pursue the existing City Council priorities, as well as the newly identified priorities listed above for 2023-24.

CITY MANAGER’S REPORT
City Manager Wolfe provided an informational report for the record.

City Council Meeting Minutes Page 5 February 23, 2023

CLOSED SESSION ITEMS

7. Closed Session - California Government Code Section 54957 regarding:

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: City Manager
The City Council met in closed session to discuss Item 7. No reportable action was taken.

ADJOURNMENT
Mayor King adjourned the regular meeting at 8:38 p.m. The next regular meeting of the City Council will be held on Thursday, March 9, 2023 at 6:00 p.m. ____________________________
Dave King
Mayor
ATTEST:
___________________________
Linda Reid
City Clerk

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 2

To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: March 9, 2023
Subject: List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2022/2023
______________________________________________________________________________

BACKGROUND
Staff is required to submit a check register to the City Council for approval every Council meeting for the most recently completed check register (Attachment 1).

The check register for the period 02/11/2023 through 02/24/2023 has been prepared in accordance to Government Code section 37202 and Buellton Municipal Code section

3.08.070. The check register lists all vendor payments for the specified period above, along with claimant’s name, a brief description of the goods or service purchased, amount of demand, check number, check date and the account number(s) associated with each payment.

The total amount of checks and electronic fund transfers issued for the period of 02/11/2023 through 02/24/2023 was $246,584.29.

FISCAL IMPACT
Payments made to the various vendors were consistent with the approved City’s Budget for FY 2022/23. Cash is available for the payment disbursements of the above liabilities.

RECOMMENDATION
That the City Council review and accept the check register for the period 02/11/2023 through 02/24/2023.

ATTACHMENTS
Attachment 1 – Claims

CITY OF BUELLTON
City Council Agenda Staff Report

City Manager Review: SW
Council Agenda Item No.: 3

To: The Honorable Mayor and City Council

From: Shannel Zamora, Finance Director

Meeting Date: March 9, 2023

Subject: Monthly Treasurer’s Report – January 31, 2023
______________________________________________________________________________

BACKGROUND

California Government Code Section 53646(b)(3) provides mandatory investment reporting requirements for California public agencies. The attached Treasurer’s Report complies with the State’s reporting requirement.

On June 9, 2022, Council adopted the current Investment Policy per Resolution 22-21 which states the City Finance Director, as the investment officer, must submit monthly reports to City Council to demonstrate that sufficient cash flow liquidity is available to meet the succeeding month’s estimated expenditures.

This Treasurer’s Report is for January 31, 2023. Treasurer’s Reports are presented on a monthly basis.

FISCAL IMPACT

There is no fiscal impact; this report is intended to show the City Council the financial performance of the City’s investment portfolio of idle funds.

RECOMMENDATION
That the City Council receive and file the Treasurer’s Report for the month ending January 31, 2023.

ATTACHMENTS
Attachment 1 – Monthly Treasurer’s Report – January 31, 2023

[Type text]
A
City of Buellton
Monthly Treasurer’s Report
For the month ending in January 31, 2023
March 9, 2023
This report presents the City’s cash activity and investment portfolio as of January 31, 2023. The report includes:
1) Cash and investments at January 31, 2023 compared to the prior month;

2) A reconciliation of cash and investments to City ledger balances; 3) All investments managed by the City on its own behalf; 4) Beginning of year fund balance, revenues, expenditures and ending fund balance for each fund at January 31, 2023
The following schedule is a summary of the City’s cash and investments based on recorded value as of January 31, 2023 compared with the prior month.

December 31, 2022 January 31, 2023 $ Change
Cash - Pooled $ 6,189,107.75 $ 6,631,563.67 $ 442,455.92 Restricted Cash 228,631.94 18.29 (228,613.65)
Investments held by the City 15,464,666.70 15,525,852.30 $ 61,185.60 TOTAL CASH AND INVESTMENTS $ 21,882,406.39 $ 22,157,434.26 $ 275,027.87 Summary of activity for the Month and Future Liquidity: The majority of the difference in the recorded value for cash and investments held by the City from last month is mainly due to receipt of November 2022 sales tax and property tax revenue offset with expenditures for Public Safety services and final disbursement to ENGIE for energy saving services. The value of investments increased due to interest earnings on the money market fund and Certificate of Deposits (CDs). The portfolio is sufficiently liquid to meet expected expenditures for the coming six months.

City of Buellton

M o n t h l y T r e a s u r e r ’ s R e p o r t
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The following schedule is a reconciliation of Cash and Investments to City ledger:

Per Statements: 1/31/2023
Mechanics Bank General Checking 7,172,879.37
Mechanics Bank Money Market 5,236,588.03
Mechanics Bank FSA 12,893.67
Local Agency Investment Fund 8,757,075.37
Multi-Securites Bank 1,532,188.90
Sterling Bank - Escrow 18.29
Total Cash per Statements: 22,711,643.63
Claim on Cash vs. Total Cash Per Statements: (554,803.92) Outstanding items per System Reconciliation: (554,803.92) Difference: -
11,694,496.01
3,508,616.27
(1,720,997.14)
7,668,825.77
(2,575,020.27)
495,043.95
36,501.90
460,038.82
374,119.42
30,432.20
583,680.25
1,227,307.98
326,868.85
-
-
47,520.25
-
22,157,434.26
6,618,670.00
5,236,588.03
12,893.67
1,532,188.90
8,757,075.37

18.29 -
22,157,434.26
999-21000 Wages Payable - -
22,157,434.26
Bank Reconciliation - January 2023
City of Buellton, CA
For the Period Ending 1/31/2023
12/31/2022

BALANCE

CURRENT

ACTIVITY
1/31/2023
BALANCE ACCOUNT # ACCOUNT NAME
006-10000 Claim on Pooled Cash (1,720,997.14) -
020-10000 Claim On Pooled Cash 7,534,186.59 134,639.18

CLAIM ON CASH
001-10000 Claim On Pooled Cash 11,264,605.43 429,890.58 005-10000 Claim On Pooled Cash 3,498,261.33 10,354.94
024-10000 Claim On Pooled Cash 36,405.49 96.41
025-10000 Claim On Pooled Cash 439,464.82 20,574.00
021-10000 Claim on Pooled Cash (2,575,020.27) -
023-10000 Claim On Pooled Cash 493,736.39 1,307.56
031-10000 Claim On Pooled Cash 542,623.90 41,056.35
032-10001 Claim On Pooled Cash 1,224,066.30 3,241.68
027-10000 Claim On Pooled Cash 377,974.97 (3,855.55)
029-10000 Claim On Pooled Cash 30,601.30 (169.10)
091-10000 Claim On Pooled Cash - -
092-10000 Claim On Pooled Cash 410,491.78 (362,971.53)
075-10000 Claim On Pooled Cash 326,005.50 863.35
090-10000 Claim On Pooled Cash - -
TOTAL CLAIM ON CASH 21,882,406.39 275,027.87

CASH IN BANK
Cash in Bank
999-10001 Pooled Cash - General Checking 6,174,329.37 444,340.63 999-10004 Pooled Cash - Brokerage 1,529,107.06 3,081.84 999-10005 Pooled Cash - LAIF 8,711,566.44 45,508.93
999-10002 Pooled Cash - Money Market 5,223,993.20 12,594.83 999-10003 Pooled Cash - FSA 14,778.38 (1,884.71)
TOTAL: Cash in Bank 21,882,406.39 275,027.87
-
TOTAL: Cash in Bank 21,882,406.39 275,027.87
999-10007 Restricted Cash - Webster Bank Escrow 228,631.94 (228,613.65) 999-10008 Restricted Cash - Webster Bank Equity - -

M o n t h l y T r e a s u r e r ’ s R e p o r t
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City of Buellton
Investment Summary
January 31, 2023
Currently, short-term excess cash is primarily invested in the Local Agency Investment Fund (LAIF) administered by the State Treasurer. This is a high quality investment available in terms of safety, liquidity, and yield. Due to fluctuations in the marketplace, the City may have some investments with a current market value that is greater or less than the recorded value. This difference has no effect on investment yield as the City intends to hold the securities to maturity. However, generally accepted accounting principles require that market gains and losses be reported as interest earnings or losses at year-end.

Percent of
Portfolio Yield
Maturity
Term Maturity Date Par Value Market Value
Local Agency Investment Fund - LAIF 56.38% 2.07% n/a n/a $ 8,757,075.37 $ 8,757,075.37 First Technology Bank Fed Cr Union 0.66% 3.60% 5 yrs. 12/26/2023 103,000.00 101,971.03 First Technology Bank Fed Cr Union 0.64% 3.35% 5 yrs. 2/6/2024 100,000.00 98,614.00 Comenity Cap Bank 1.03% 2.80% 5 yrs. 4/15/2024 160,000.00 156,368.00 Morgan Stanley Bank 0.64% 2.75% 5 yrs. 5/2/2024 100,000.00 97,611.00 Capital One Bank 0.64% 2.00% 5 yrs. 8/21/2024 100,000.00 95,968.00 Morgan Stanley Bank 0.64% 1.90% 5 yrs. 1/23/2025 100,000.00 94,791.00 State Bk India 1.29% 1.60% 5 yrs. 4/29/2025 200,000.00 187,034.00 Sallie Mae Bank 0.77% 0.80% 5 yrs. 7/1/2025 120,000.00 109,491.60 Third Fed Savings 1.58% 3.50% 5 yrs. 6/28/2027 245,000.00 234,342.50 Morgan Stanley Bank 0.67% 3.75% 5 yrs. 6/28/2027 104,000.00 100,506.64 Capital One National Association 1.56% 4.30% 5 yrs. 9/30/2027 242,514.04 240,947.56 Multi-Securities Bank - Cash in Holding 14,543.57
Money Market (Held with Mechanics Bank) 33.48% 2.50% n/a 5,200,000.00 5,236,588.03 Total City Investments 100.00% $ 15,531,589.41 $ 15,525,852.30 Certificates of Deposits (Held with Multi-Securities Bank)

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The following is a fund balance schedule showing beginning fund balance at July 1, 2022 plus revenues minus expenditures for the period, resulting in ending fund balance at January 31, 2023.

Fund balance includes total assets and liabilities of the City.

As required by Government Code Section 53646 (b) (3), the chief financial officer for the City declares that there is sufficient funds to meet all obligations for the next six months.

Shannel Zamora
Shannel Zamora
Finance Director
Total Expenses January 31, 2023
Balance
5,813,845.65 6,166,424.98 11,636,602.46
749,250.51 947,095.02 3,051,162.64
006 - Wastewater Capital - 127,799.22 79,740.53
020 - Water Fund 1,599,032.91 1,286,532.30 7,778,157.52 021 - Water Capital - 293,175.51 73,890.43
2,502.76 - 492,415.13
172.45 - 36,307.87
131,914.01 91,384.36 449,717.13
027 - Local Transportation Fund 101,542.27 13,666.62 374,587.55 029 - Transportation Planning 148.47 3,250.00 (106,355.59) 031 - Measure A 204,040.53 476,411.31 613,277.63
032 - American Relief Act Fund 616,051.20 - 613,790.37
075 - Trust & Agency Fund 1,478.81 - 10,934.25
090 - Long-Term Debt - - (4,098,502.82)
091 - General Fixed Assets - - 26,391,866.65
1,065,700.08
10,477,146.34 47,391,884.81
26,391,866.65
092 - Capital Improvement Proj Fund - 1,071,407.02 (5,706.94) 47,583,351.50 10,285,679.65
286,711.90
(103,254.06)
885,648.41
(2,260.83)
9,455.44
(4,098,502.82)
367,065.94
023 - Housing Fees 489,912.37
024 - Traffic Mitigation Fund 36,135.42
025 - Gas Tax Fund 409,187.48
001 - General Fund 11,989,181.79
005 - Sewer Fund 3,249,007.15
207,539.75
7,465,656.91
Fund Balance Report
City of Buellton, CA 1/31/2023
Fund July 1, 2022
Balance
Total Revenues

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 4
To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: March 9, 2023
Subject: Discussion and Direction for Funding Buellton Senior Center ______________________________________________________________________________

BACKGROUND
At the February 23, 2023 City Council Meeting, Pam Gnekow, CEO of the Buellton Senior Center, spoke to Council requesting funding for the Buellton Senior Center. Council directed staff to bring back the funding request for discussion. As a valuable resource to the community, the City has provided grants to the Senior Center on an annual basis to support its program operations. The funding requested granted by the City during the most current budget for FY 2022/23 was $70,203 and was paid in advance in March 2022 as requested by the Senior Center and authorized by City Council.

The Senior Center serves the community of Buellton and the greater Santa Ynez Valley.

Their services to the senior citizens is not just providing nutritional support, but also transportation, health and general better welfare. With the extensive services they provide, the Senior Center relies on a variety of funding sources to meet their operational needs.

However, the timing of such funding sources and cost of these serves, it continues to leaves the Senior Center with a cash flow deficit during this time of year. In order to sustain the Senior Center at a minimum, Ms. Gnekow is requesting an advance of their FY 2023/24 City grant to be disbursed in March 2023, rather than July 2023. However, the City has yet to adopt a new budget for FY 2023/24 as it is in the early stages of budget preparation for the Biennial Budget FY 2023/24 and 2024/25.

Funding to help the Senior Center with their cash flow needs will require a budget amendment to FY 2022/23, and will be in addition to the amount already disbursed in March 2022 for FY 2022/23. The additional funding request is $70,203 which is the same amount that was previously granted.

FISCAL IMPACT
Additional funding will require a budget amendment to FY 2022/23 in the amount of $70,203 (001-410-67205 Senior Center Support).

Buellton Senior Center Funding Page 2 March 9, 2023

RECOMMENDATION
That the City Council discuss and provide potential funding options for the Senior Center and approve a budget amendment to FY 2022/23 per City Council direction.

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 5
To: The Honorable Mayor and City Council
From: Greg Murphy, City Attorney
Meeting Date: March 9, 2023
Subject: Discussion and Possible Direction Regarding Code Revisions for Appeals of Land Use Decisions

BACKGROUND
The City of Buellton has a reasonably strong General Plan, Specific Plan, and Zoning Code.

In reviewing the Code and recent development projects, however, it has been determined that the provision applicable to appeals to the City Council may need updating to reflect recent court decisions and best practices.

Specifically, Section 19.10.130(B) of the Code states:

Appeals to the City Council. Decisions of the commission or zoning administrator may be appealed to the council by the applicant or any interested person adversely affected by the decision. (emphasis added)
As a result of the language used in the Code, a Council Member may not appeal a Planning Commission decision and then sit on the appellate decision without violating the due process rights of the applicant. In a recent decision another city’s municipal code allowed appeals from any “interested party.” The court, in finding a due process violation, said that a plain reading of the code in-fact affirmatively prohibited council members from bringing appeals to themselves because “[a]n interested party for purposes of bringing the appeal cannot simultaneously be a disinterested person for purposes of affording due process in the hearing of the appeal.” Woody’s Group, Inc. v. City of Newport Beach, (2015) 233 Cal.App.4th 1012, 1025-27. While the specific council member in this case committed other violations of the due process rights of the applicant, the language of the zoning code alone made it impossible for a council member to appeal a project and then hear the appeal.

Other jurisdictions have updated or are in the process of updating their zoning codes to create other means for projects to reach the city council, and in light of the language in Section 19.10.130(B) it is recommended that Buellton do likewise.

Land Use Appeals Page 2 March 9, 2023

SURVEY OF APPEAL AND REVIEW PROCEDURES
The City Attorney’s office reviewed a number of jurisdictions with which we are familiar, and we offer the following examples of review procedures as examples of what may work for the City. Bold and underlined text is used to show the manner in which the jurisdictions ensure that a city-initiated or council member-initiated review will not infringe on due process rights.

1. Santa Clarita (municipal code section 17.07.050)—review initiated by one or more members of the next level of designated review authority:

A. A certification of review may be initiated for a decision on any discretionary application by one (1) or more of the members of the next level of designated review authority. For decisions of the Director or Hearing Officer a certification of review may be requested by any one (1) member of the Commission; and for decisions of the Commission a certification of review may be requested by any one (1) member of the Council. A certification of review shall be made no later than one (1) day prior to the day on which an appeal of the decision is due pursuant to Section 17.07.030 (Filing of Appeals).

B. Certification shall not require any statement of reasons, and shall therefore not represent opposition to or support of an application. No fee shall be required.

2. Temple City (municipal code section 9-1C-5(F))—appeal initiated by City Official:

1. Eligibility: The following city officials may file with the city clerk a request for review (RFR) of any decision made by the planning commission:
a. Any council person.
b. The city manager.
c. The city attorney.

2. Timing: Such RFR must be filed within fourteen (14) days of the decision by the planning commission, as a no fee filing, together with a statement that such RFR is not indicating support for or opposition to such decision, but is filed because the filer believes that such decision involves a matter of such interest, import, precedent or significance that such decision should as a matter of policy and planning be made by the city council.

3. Bellflower (municipal code section 17.112.020)—appeal initiated by any officer, Board, department, or bureau of the City.

Any order, requirement, decision, determination, interpretation or ruling made by the City Planning Commission in the administration or enforcement of this title may be appealed therefrom to the City Council by any person aggrieved, or by any officer, board, department or bureau of the City. The taking of an appeal stays proceedings in the matter appealed from until the determination of the appeal.

Land Use Appeals Page 3 March 9, 2023

4. Rialto (municipal code section 18.68.010)—appeal by city council or any officer, board, department, or bureau of the City.

Any order, requirement, decision, determination, interpretation or ruling made by the planning commission in the administration or enforcement of the provisions of this title may be appealed therefrom to the city council by any person aggrieved, or by an officer, board, department or bureau of the city. The taking of an appeal stays proceedings in the matter appealed from until the determination of the appeal.

As is evident, for the City to ensure the due process rights of applicants and other parties to a proceeding, a change needs to be made to Section 19.10.130(B). Whether the City Council would prefer a minor change in the style of Bellflower and Rialto or a more substantive change like Santa Clarita or Temple City is a subject for discussion. The City Attorney’s office is prepared to provide additional insights and to discuss issues of process and procedure with the Council during your meeting.

RECOMMENDATION
That the City Council discuss the issue of appeals and other referrals of land use decisions and provide direction to the City Attorney’s office on the preparation of an ordinance to revise the Municipal Code related to land use appeals.

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 6
To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: March 9, 2023
Subject: Review of Annual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2022
______________________________________________________________________________

BACKGROUND
Staff is pleased to present the Annual Comprehensive Financial Report (ACFR) for the fiscal year July 1, 2021 through June 30, 2022 (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 28 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 2021-2022 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

FY 2021-21 Annual Comprehensive Financial Report Page 2 March 9, 2023 procedures to determine if there are any material weaknesses or instances of noncompliance. 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 1-64). 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 2021-22 ACFR.

RECOMMENDATION
That the City Council review and file the Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2022.

ATTACHMENTS
Attachment 1 – Annual Comprehensive Financial Report for June 30, 2022 Attachment 2 – Glossary of terms
Attachment 3 – 2021-22 Revenue and Expenditures Report (Governmental Funds) Attachment 4 – 2021-22 Revenue and Expense Report (Proprietary Funds)

CITY OF BUELLTON, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

Cover photo include Arts and Culture Project funded:

Best of Buellton Mural Project individual tiles
Artist: Liz Alvarez

CITY OF BUELLTON, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2022
PREPARED BY:

FINANCE DEPARTMENT
Shannel Zamora, Finance Director

Page Left Blank Intentionally.

INTRODUCTORY SECTION

CITY OF BUELLTON

TABLE OF CONTENTS
June 30,2022

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................................ i Letter of Transmittal ..................................................................................................................................................................... iii Organization Chart ....................................................................................................................................................................... xii List of Officials ............................................................................................................................................................................. xiii Certificate of Achievement for Excellence in Financial Reporting .............................................................................................. xiv

FINANCIAL SECTION
Independent Auditors' Report ....................................................................................................................................................... 1 Management's Discussion and Analysis ........................................................................................................................................ 3 Basic Financial Statements:

Government-Wide Financial Statements:

Staternent of Net Position ...................................................................................................................................................... 2S Statement of Activities ........................................................................................................................................................... 26 Fund Financial Statements:

Governmental Funds:

Balance Sheet ..................................................................................................................................................................... 29 Reconciliation of Governmental Funds-Balance Sheet to the Statement of Net Position ............................................................................................................................................................. 30 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................................................. 31 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities ......................................................................................... 32 Proprietary Funds:

Statement of Net Position .................................................................................................................................................. 34 Statement of Revenues, Expenses, and Changes in Net Position ....................................................................................... 35 Statement of Cash Flows .................................................................................................................................................... 36 Index to Notes to Basic Financial Statements ........................................................................................................................... 37 Notes to Basic Financial Statements ......................................................................................................................................... 38

REQUIRED SUPPLEMENTAL INFORMATION SECTION
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

General Fund ............................................................................................................................................................................ 65 American Rescue Plan Act Fund ............................................................................................................................................... 66 Notes to the Required Supplemental Information - Budgetary Comparison Schedules ............................................................ 67 Schedule of Proportionate Share of Net Pension Liability ........................................................................................................... 68 Schedule of Pension Contributions .............................................................................................................................................. 69 Schedule of Changes in OPEB Liability and Related Ratios .......................................................................................................... 70 Schedule of OPEB Contributions .................................................................................................................................................. 71

SUPPLEMENTAL INFORMATION SECTION
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Capital Improvement Project Fund - Major Capital Projects Fund .......................................................................................... 73 Combining Balance Sheet - Nonmajor Governmental Funds ..................................................................................................... 76 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds ............................................................................................................................. 78 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:

Housing Fund ........................................................................................................................................................................... 80 Traffic Mitigation Fund ............................................................................................................................................................. 80 Gas Tax Fund ............................................................................................................................................................................ 81 Measure A Fund ....................................................................................................................................................................... 81 Local Transportation Fund ....................................................................................................................................................... 82 Transportation Planning Special Revenue Fund ...................................................................................................................... 82

CITY OF BUELLTON

TABLE OF CONTENTS - CONTINUED
June 30, 2022

STATISTICAL SECTION
Financial Trends:

Net Position by Component ..................................................................................................................................................... 86 Changes in Net Position ........................................................................................................................................................... 88 Fund Balances - Governmental Funds ..................................................................................................................................... 92 Changes in Fund Balances - Governmental Funds .................................................................................................................. 94 Revenue Capacity:

Assessed Value and Actual Value of Taxable Property ............................................................................................................ 97 Direct and Overlapping Tax Rates ............................................................................................................................................ 98 Principal Property Taxpayers ................................................................................................................................................... 99 Schedule of Top 25 Principal Sales Tax Remitters .................................................................................................................. 100 Property Tax Levies and Collections ....................................................................................................................................... 102 Debt Capacity:

Direct and Overlapping Debt ................................................................................................................................................. 103 Legal Debt Margin Information .............................................................................................................................................. 104 Demographic and Economic Information:

Demographic and Economic Statistics ................................................................................................................................... 107 Operating Information:

Full-time and Part-time City Employees by Function ............................................................................................................. 108 Operating Indicators by Function ........................................................................................................................................... 109 Capital Asset Statistics by Function ........................................................................................................................................ 110 Capital Asset Statistics by Funds ............................................................................................................................................ 112 ii

City of Buellton
January 13, 2023
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, 2021 through June 30, 2022. 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, 2022.

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 licensed certified public accountants, 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 2021-2022 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 Page 41 of 197

CITY OF BUELLTON
Letter of Transmittal
For the Year Ended June 30, 2022

REPORTING ENTITY
The City of Buellton has operated under the Council-Manager form of government since incorporation in February 1992. The Mayor and Council form the legislative body that represents the community and is empowered to formulate citywide policy. Council members serve fouryear terms, with two members elected every two years. Starting in 2016, the City transitioned from an appointed Mayor to an elected Mayor with a two-year term. The City Manager is appointed by the Council and serves as the chief administrative officer of the organization responsible for the administration of City affairs, day-to-day operations and implementation of Council policies. In addition to the City Manager, the City Attorney is appointed by and reports directly to the
City of Buellton, California was in 1992 IS In central coast part the state, within the Santa Ynez Valley. It is located at the regional intersection of Highways 101 and 246 about 45 miles North of the City of Santa Barbara. Buellton occupies an area of 1.6 miles and serves a population of about 5,055, consisting of about 2,049 households within the City.

Thousands of travelers have come to know Buellton as Home of the Split Pea Soup, giving credit to Andersen's Split Pea Soup Restaurant. The City is surrounded by cattle ranches, the beautiful Santa Ynez Mountains, vineyards and wineries. No longer merely a crossroads stop for tourists and travelers, the City evolved into a desirable to live and work.

Buellton's scenic biking routes, hiking trails and wine trails are a popular recreational attraction.

The botanical gardens at River View are a picturesque vista for locals tourists alike. "£","nL~<" a services via ,-,.... .. ,"1" .. -.,...1" .... including police and protection; refuse collection; off-street parking; building inspections; licenses and permits; the construction and maintenance of highways, streets, and other infrastructure; recreational and cultural activities; library services; low-income housing; and transit services. The City contracts with the County of Santa Barbara Police and Fire services.

Refuse collection services are under contract with Marborg Industries. Water distribution and sanitary sewer services are provided through departments of the City of Buellton and are maintained as separate funds in the proprietary section of these financial statements.

The ACFR includes all funds of the City, as well as all governmental organizations and activities for which the Council has financial accountability. The City adopts a biennial budget which serves as the foundation for the City's financial planning. The budget process starts with the requests from all departments for review and inclusion into the proposed budget. The City uses a combined program and line item format designed to provide a comprehensive management control and fiscal planning system. This format is aimed at achieving goals and objectives at the operational levels that are consistent with City Council's goals and priorities. The City Manager and Finance Director review the requests and present the proposed biennial budget to the City Council for review and adoption before June 30th . The Council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than June 30th . The budget is iv

CITY OF BUELLTON
Letter of Transmittal
For the Year Ended June 30, 2022
adopted by resolution of the City Council and, upon final adoption, becomes the City's spending authority.

ECONOMIC CONDITION AND FISCAL OUTLOOK
Fiscal Year ending June 30, 2022 marked nearly 27 months from the date that the COVID-19 pandemic forced a shutdown to prevent the spread of the COVID-19 virus. That shutdown drastically impacted the nation's economy and created uncertainty about the future economic impact. Fortunately, many parts of the economy recovered quickly after COVID-19 vaccinations became available, an additional round of stimulus checks were sent out and restrictions eased.

Consumers were ready to go out, spend,
In at was
open new masking
contributing to a
on June 15,
economic recovery.
all to reOn March 11, 2021, the American Rescue Plan Act 2021 (ARPA), was signed into law to provide $350 billion of emergency funding for state, local, territorial, and tribal governments in the form of Coronavirus State Local Fiscal Recovery Funds (SLFRF). The City was granted $1,220,507 in ARPA money which was disbursed in two installments beginning July 2021. These funds may only be used: 1) To respond to the public health emergency or its negative economic impacts; To respond to workers performing work during COVID-19 public health emergency by providing premium pay to eligible workers; 3) For the provision of government services to the extent reduction in revenue due to the COVID-19 public health emergency relative to revenues in the most recent fiscal to the emergency; 4} To in sewer, or use
ARPA funds to cover eligible costs incurred during the period 3, 2021 to December 31, 2024, as long as they are expended by December 31, 2026. The City did not expend ARPA funds in FY 2021-22 and intends to use $300,000 for installation upgrade of a power generator for the Wastewater Treatment Plan in FY 2022-23.

The City has experienced a period of growth over the past several years. In the last ten years, the population of the City has grown by nearly 12 percent. Development in the city has prospered with twenty two open projects that include multi-family residential, industrial, commercial, and mixed use projects. Revenues, such as property tax and sales tax, are all affected positively from the increased development both indirectly from the growth in population and directly by the growth in assessed property value.

Tourists continue to view Buellton as a destination, as reflected in the increases in sales tax and TOT revenue. The top three sales tax categories for the City for the year ended June 3D, 2022 were: Fuel and Service Stations, Autos and Transportation and County and State Pools. Sales tax revenue was $3.2 million, marking the highest sales tax revenue the City has received since its incorporation. Sales tax revenue was $352,116 (12.0%) higher compared to FY 2020-21 and $749,667 (29.6%) higher compared to FY 2019-20.
v

CITY OF BUELLTON
Letter of Transmittal
For the Year Ended June 30, 2022
TOT recovery is trending upwards and has exceeded pre-pandemic levels. For the fiscal year ended June 30, 2022, TOT revenue was about $4.3 million, about $1.2 million (42.1%) higher compared to the prior fiscal year. TOT in FY 2019-20 was $2.5 million and prior to the pandemic was $3.1 million.

The City attracts a significant visitor population and numerous employees coming from neighboring Santa Barbara County jurisdictions. Employment is concentrated within accommodation and food services, manufacturing, retail trade and agriculture. The median household income is $107,614 compared to $84,356 for Santa Barbara County. Per capita income compared to ...;-r'U'.U'-J-r
(68.7%L newer
20% to value in
June 2022 value is $823,250. Buellton median home values gone up 8.25% over prior year. The median home value for County compares at $740,000 along with the California value $863,790.

According to
the unemployment rate in Buellton in June
Development Department (EDD),
decreased from 1.4% from the
previous rate continues to stay average. The unemployment rate for California in June 2022 was 4.0%. California unemployment rate is below the pre4.2% in June 2019. Rate in June 2022 was lower leisure

LONG-TERM FINANCIAL AND MAJOR INITIATIVES
Fiscal Year 2021-22 marks the first year of the City's Biennial for FY 2021-22 and FY 2022-

23. The Biennial Budget was developed to allow the ability to maintain long-range planning efforts, ability to develop realistic significant objectives, encourage more efficient spending patterns and to save time and resources allocated to preparing an annual budget. The budget was reformatted to efficiently communicate information to the community and to City Council members. The City also produces a five-year Capital Improvement Budget that is updated annually based on project status and current economic conditions. The City continues to improve our financial transparency via our City website by providing monthly and quarterly interim financial reports.

During the fiscal year ended June 30, 2022, the City successfully undertook the following LongTerm Financial Planning and Major Initiatives:
• Since the start of the COVID-19 pandemic, the City has proactively engaged in activities to protect the health and safety of the community and committed to the safe operations of essential services such as:
vi

CITY OF BUELLTON
Letter of Transmittal
For the Year Ended June 30, 2022
o City Hall lobby was open to the public, maintaining suggested social distancing protocols and teleworking part-time.
o City Council and Planning Commission meetings have been available in-person, via Zoom and broadcast live on the City Website. Community involvement in meetings has been conducted by email and in-person.
o City Council passed Resolution No. 20-10 to defer water shutoffs and waive penalties on water and wastewater bills. The resolution expired of December 31, 2021.
o City Council passed Resolution No. 20-17 to grant the City Manager temporary authority to allow deviation from the Municipal Code requirements to allow local safely with sidewalks, areas, and within
'_E'T_"'r.:>" in certain instances.
• Council $61,888 to continue Arts Culture Program. The City received the 2022 Helen Putnam Award for Development through the Arts. In addition, the Arts and Culture Program received Santa Barbara County's "Leadership in the Arts" award. The following are examples of funded activities. o {{Best of Buellton" Mural Project phase 2, Art of the Avenue, Botanic Garden video, Music Celebration at River View Park, Function Art/ Wilderness at the Botanic Garden.
• Council approved Buellton's annual Buellton Fest in November to be held on Avenue of Flags.
• Council allocated $25/000 for the Landscape The
or properties is $1;000 and availab!e
on a encourages residents to
make their outdoor landscaping more attractive and environmentally friendly. • City was awarded the Regional Early Action Planning (REAP) Grant in the amount of $126,794 and Local Early Action Planning (LEAP) Grant funding in the amount of $65,000.

Grant funds are being used to cover all or a portion of the costs to implement electronic review, prepare the 2023 Housing element update and preparation and adoption of pre-approved Additional Dwelling Unit (ADU) plans.
• Construction on major capital projects continued such as:
o Construction of parking lot at Avenue of Flags Median 2 per Avenue of Flags Specific Plan was completed during summer 2021.
o Road Maintenance Project FY 2020-21 was completed.
o Water Treatment Plant Booster Power Reliability project is under construction. o Water Distribution System Improvements are under construction. o Wastewater Treatment Plant Improvements are under construction. o Installation of Solar lights at Central Avenue, Industrial Way, Pamela Way as part of the ENGlE project.
o Installation of solar panels at Post Office, Wastewater Treatment Plant, and at pump station.
o City-wide water meter upgrades are ongoing as part of the ENGlE Project. vii

CITY OF BUELLTON
Letter of Transmittal
For the Year Ended June 30, 2022
• Willemsen House in design phase for the reconfiguration of the interior of the building to accommodate the library.
• The parking lot at the lower end of the Willemsen property is in the design phase. The parking lot is essential for the future uses of the property. • City Council approved the use of the lower portion of 202 Dairyland for an equestrian facility. The approval was in the form of a monthly licensing fee in the amount of $3,500. • City Council approved to use a portion of 202 Dairyland by the Santa Ynez Children's Museum.
• Reclassified the Assistant Planner position to Assistant/Associate Planner. The reclassification was needed to facilitate recruitment.
• Major Private Development projects were approved the year. o A development plan was approved Industrial Way that includes a 7,200 square foot shell building, anticipated to be occupied by offices, warehousing, wine storage and wine production.
o A Multi-Family Residential Project at 560 McMurray Road was approved. The project consists of 49 affordable units.
o The 518 project consisting Retail, Multi-Family and Residential spaces was approved. The project consists of 5,500 square feet and 48 units.

CAPITAL IMPROVEMENT PLAN
The use of a Capita! Improvement Fund not only tracks costs guides the City in planning, scheduling budgeting of capital improvement projects. City has completed the development of a Five-year Capital Improvement Pian r'CIP") and has included it in its Biennial Budget. The City-wide capital improvement fund summarizes each project by "start date" and "end date". The CIP is updated annually and approved by Council. The CIP is the blueprint for resource investments to improve and rehabilitate existing public infrastructure while also making targeted investments that align with the City's expansion plans. In total, the City's 2021-22 CIP budget was about $7.6 Million and reflects a 12.6 percent decrease from 2020-21. The CIP includes a large investment in upgrades to energy efficient equipment, installation of solar panels at the Wastewater Treatment Plant and Post Office, installation of solar street lighting at Central Avenue and Industrial Way, and upgrade to all water meters to radio-enabled meters. The construction of the Avenue of Flags Median 2 parking lot construction phase was added to the CIP list the prior fiscal year as a City Council priority and was completed August 2021.

Key components of the Capital Improvement Program for 2021-26 include:
• Circulation Improvements - McMurray Road Widening, Avenue of the Flags Park and Ride structure and Bus Shelter improvements are still in progress with incremental progress assisting with traffic flow. The majority of funding is through the City General Fund. viii

CITY OF BUELLTON
Letter of Transmittal
For the Year Ended June 30, 2022
• Road Maintenance and Storm Drain Retrofit - Annual road maintenance projects activities were completed. The majority of this funding is through Measure A and Gas Tax, and General Fund monies. Road Maintenance projects are also funded with revenue from the Road Repair and Accountability Act (RMRA fund), also known as SB1, which became effective on November 1J 2017.
• Water Treatment Plant Capital Program - Water Facilities Improvements, Water Treatment Plant Pump Booster Reliability Project, Backwash Reclamation, Recycled Water Study, Water Distribution and Water Meter upgrades.

Capital Program -
Improvements.
line Wastewater
• Parks, Facilities and Miscellaneous - Avenue of Median 2 Improvement, Santa Ynez River Trail, City Hall Emergency Generator/Electrical Replacement, River View Park Basketball Court Resurfacing and Industrial Way Street lights. • Energy Savings Project - LED lighting at Planning Department, Wastewater Treatment Plant, library, Post Office and Station; Solar installations at Road Pump Wastewater Treatment and Post Office; HVAC
ionizers and thermostat upgrades at City Wastewater Treatment Plant, Planning, Post Station; Citywide water meter upgrades; Solar Street lights at !ndustrial V'Jay,
Equipment Lease Purchase Agreement in
Lease payments will annually. The
cost of over $4 million over 20 years.

Way.
amount
is expected to

FINANCIAL INFORMATION
Budgetary Controls
through an
a 20-year term.
energy savings
The City maintains budgetary controls through the City Council's adoption of a biennial balanced budget by resolution. The City maintains a balanced budget where revenue is equal to or exceeds expenditures for City operations. The budgeted amounts approved in the biennial budget are recorded in the City's accounting system for each fund. The budgetary level of control is maintained at the fund level. Fund level monitoring is performed monthly. Quarterly reports to Council include budget versus actual trend analysis.

The City Manager has the authority to transfer appropriations between funds, but changes to appropriations or transfers between funds must be approved by City Council. Budget amendments are submitted to Council when a fund's actual expenditures are expected to exceed ix

CITY OF BUELLTON
Letter of Transmittal
For the Year Ended June 30, 2022
budget. Unspent appropriations at the end of the fiscal year lapse, with the exception of capital improvement projects which are usually carried forward into the next fiscal year.

The City continues to meet its responsibility for sound financial management as demonstrated by the statements and schedules included in the financial section of this report.

Cash and Investment Policy
The City invests unreserved idle cash in order to enhance the economic status of the City while protecting its pooled cash. The City's Investment Policy is to exercise prudent judgment and care investing. criteria for selecting investments and priority are Safety, Yield. to as as
investments meet established for Investment
Policy is updated annually approved by the City Council.

AWARDS
Government Finance Officers Association the United States and Canada (GFOA) awarded a Certificate of Achievement Excellence in Financial Reporting to the City of Buellton for its comprehensive financial report fiscal year ended June 3D, 2021. This was the ninth consecutive year the government has achieved this prestigious award. In order to a Certificate of Achievement, a A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate.

The GFOA has also awarded the City with the Distinguished Budget Award for its Biennial Budget consecutively for the last three budget cycles. To receive this award, a government must satisfy nationally recognized guidelines for effective budget presentation to assess how well the budget serves as a policy document, a financial plan, operating guide, and a communications device.

ACKNOWLEDGMENTS
The preparation of the ACFR represents the culmination of a concerted team effort by the entire staff of the Finance Department. Many members of the Department demonstrated commendable dedication and long days of focused attention to produce this document. x

CITY OF BUELLTON
Letter of Transmittal
For the Year Ended June 30, 2022
In addition, staff in all City departments should be recognized. The City also recognizes the contributions and positive working relationship with Moss, Levy, and Hartzheim LLP.

On behalf of the entire Finance staff, we express our appreciation to the Mayor and City Council for providing policy direction and support for achieving financial excellence in all aspects of financial reporting.

Respectfully Submitted,

Shannel Zamora
Finance Director
xi Page 49 of 197
City of Buellton, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Organization Chart
Electorate
City Council
Planning
Commission City Manager
Planning
Director
Assistant
Planner
Staff
Assistant/Plannin
g Technician
Finance
Director
Accounting
Specialist
Revenue
Specialist
Accounting
Technician
Public Works
Director/City
Engineer
Chief Plant
Operator -
WWTP
Lead Maintenance &
Utility Fieldworker
Journeyman
Maintenance & Utility
Fieldworker
Maintenance & Utility
Fieldworker I
Facilities Supervisor/Utility
Fieldworker
Facilities Foreman/Utility
Fieldworker
City
Clerk/Huma
n Resources
Director
Recreation
Supervisor
Recreation
Center
Coordinator
Youth
Recreation
Coordinator
Engineering Fire Police
City Attorney
xii Page 50 of 197
City of Buellton, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
List of Officials as of June 30, 2022

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

CITY OFFICIALS
~ 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
xiii

City of Buellton, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Certificate of Achievement for Excellence in Financial Reporting xiv Page 52 of 197

FINANCIAL SECTION

Moss, Levy & Hartzheim LLP
Certified Public Accountants

INDEPENDENT AUDITORS' REPORT
City Council of the City of Buellton
Buellton, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the major funds, and the aggregate remaining fund information of the City of Buellton, as of and for the fiscal year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Buellton's basic financial statements as listed in the table of contents.

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, the major funds, and the aggregate remaining fund information of the City of Buellton, as of June 30, 2022, 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.

Basis for Opinions
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.

Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Buellton and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Change in Accounting Principle
As discussed in Note 1 to the financial statements, for the fiscal year ended June 30, 2022, the City of Buellton adopted new accounting guidance, GASB Statement No. 87 Leases. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Buellton's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 1 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Tel 805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS· CULVER CITY· SANTA MARIA

• Obtain an understanding of internal control relevant to the audit 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 City of Buellton's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Buellton's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on, the budgetary information, the schedule of proportionate share of net penSion liability, the schedule of pension contributions, the schedule of changes in OPEB liability and related ratios, and the schedule of OPEB contributions, 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.

Supplementary 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 combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit and the report of the other auditors, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections and the major capital project fund budgetary schedule but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 13, 2023, 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 13, 2023
2

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
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, 2022. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FI HIG LIGHTS
Key financial highlights for FY 2021-22, are as follows:
• As of the close of the fiscal year, the City's total net position increased by $4,024,851 including the priorperiod adjustment, or 9.2%, 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 businesstype activities. A summary of transactions reflecting Net Position is found on page 7 of this report. • On June 30, 2022, the City's assets and deferred outflow of resources exceeded its liabilities and deferred inflows of resources by $47,570,796 (net position). Of this amount, $14,771,833 (unrestricted net position) may be used to meet the government's ongoing obligations to its citizens and creditors.

The remaining amount includes $30,424,156 for net investment in capital assets and $2,374,807 for restricted uses.
• The City of Buellton's governmental funds reported a combined ending fund balance of $13,990,322, an increase of $2,478,165, or 21.5%, in comparison with the prior fiscal year fund balance. $11,649,348 (83.3%) 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 with $11,754,863.

Management's suggested minimum reserve goal is to maintain 35% of budgeted operating expenditures, or a "non-spendable" fund balance figure of $3,036,692. The unassigned fund balance is in substantial excess of the suggested minimum reserve: $8,718,171 is ({spendable". • The primary government's program revenues increased by $359,700, or 6.4%, in comparison with the prior fiscal year. The increase was driven by a $157,813 increase for charges for services and an increase of $201,887 in operating grants and capital contributions. The total primary government's expenses decreased by $204,167, nearly 2.3%.
• The City's net pension liability decreased from $2,411,265 to $1,252,299 which is approximately a 48.1% decrease from the prior year. As of the most current Annual Valuation Report (Measurement date June 30,2021), the City's defined benefit plan's funding ratios were 106.9% for the PEPRA Plan and 83.2% for the Classic Plan.
• The City reported its OPEB liability per GASB 75. The net OPEB liability for fiscal year ended June 30, 2022 increased from $2,649,289 to $3,126,228 which is an 18.0% increase from the prior year, and the percentage of covered-employee payroll was 193.73%.
3

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis

OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual Comprehensive Financial Report has 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.

Basic
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 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 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, as explained below.
• 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.
4

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
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 sorted into three categories: governmental funds, proprietary funds and fiduciary 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, 2022, the City's major funds are as follows:

GOVERNMENTAL FUNDS:
• General Fund
• American Rescue Plan Act 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.

Fiduciary funds. The City maintains one private-purpose trust fund and one agency fiduciary fund. The agency funds are used to account for resources held for the benefit of parties outside the government. Since agency funds are custodial in nature, (i.e. assets equal liabilities), they do not involve the measurement of results of 5

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
operations. Private-purpose trust funds are not reflected in the government-wide financial statements for this reason.

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 37-64 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 75-79 of this report.

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 $47,570,796 for the period ending June 30, 2022, an 9.2% increase from the prior fiscal year.

The largest portion (64,0%) of the City's net position reflects its investment of $30.4 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 $2.4 million (5.0%) of the City's net position represents resources that are subject to external restrictions on how they may be expended. These restrictions include Housing and Streets, Roads and Transportation, and Capital Expansion.

About $14.8 million of the net position (31.1%) is unrestricted and may be used to meet the government's ongoing obligations to citizens and creditors. Of this amount, $6.1 million is held by the business-type activities and $8.6 million held by the governmental activities.

The statement of activities shows how the City's net position changed during fiscal year 2021-22 compared to the prior fiscal year. The City's net position increased overall by about $3.3 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, 2022, and June 30, 2021.
6

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
The Summary of Net Position as of June 30, 2022, and 2021, follows:

Summary of Net Position
2022
Govern- Business- Governmental type mental
Activities Activities Total Activities
Current and other assets $ 16,529,474 $ 7,859,926 $ 24,389,400 $ 13,072,965 Noncurrent assets 631,406 631,406 150,000
Capital assets,net 26,329,883 8,176,627 34,506,510 24,869,112 Total assets 43,490,763 16,036,553 59,527,316 38,092,077 Deferred outflows of resources 882,564 345,347 1,227,911 767,113 Total assets and deferred
outflows of resources 44,373,327 16,381,900 60,755,227 38,859,190 Current and other liabilities 2,437,683 214,860 2,652,543 1,571,337 Noncurrent liabilities 4,123,814 4,568,433 8,692,247 4,724,096 Total liabilities 6,561,497 4,783,293 11,344,790 6,295,433 Deferred inflows of resources 1,530,304 309,337 1,839,641 38,909 Total liabilities and deferred
inflows of resources 8,091,801 5,092,630 13,184,431 6,334,342 Net Position:

Net investment in capital assets 25,512,899 4,911,257 30,424,156 23,695,943 Restricted 2,121,838 252,969 2,374,807 1,947,038
Umestricted 8,646,789 6,125,044 14,771,833 6,881,867
Total net position $ 36,281,526 $ 11,289,270 $ 47,570,796 $ 32,524,848 7 2021
Businesstype
Activities Total
$ 9,317,124 $ 22,390,089
150,000
6,290,309 31,159,421
15,607,433 53,699,510
251,696 1,018,809
15,859,129 54,718,319
194,068 1,765,405
4,632,636 9,356,732
4,826,704 11,122,137
11,328 50,237
4,838,032 11,172,374
5,035,332 28,731,275
1,947,038
5,985,765 12,867,632
$ 11,021,097 $ 43,545,945

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
Provided below is a summary of changes in Net Position for the fiscal years ended June 30, 2022, and 202l.

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

Program revenues:

Charges for services $ 323,660 $ 3,919,744 $ 4,243,404 $ 180,216 $ 3,905,375 $ 4,085,591 Grants and contributions:

Operating 1,744,561 1,744,561 1,557,864 1,557,864
Capital 15,190 15,190
General revenues:

Secured and unsecured
property taxes 1,751,216 1,751,216 1,670,306 1,670,306
Sales and use tax 3,286,448 3,286,448 2,934,332 2,934,332 Transient lodging tax 4,292,382 4,292,382 3,020,078 3,020,078 Franchise taxes 356,836 356,836 330,044 330,044
Other taxes 67,863 67,863 37,456 37,456
Fines and forfeitures 12,089 12,089 8,654 8,654
Investment income (252,959) (23,883) (276,842) 124,175 20,773 144,948 Other general revenues 20,225 20,225 27,799 27,799
Total revenues 11,602,321 3,911,051 15,513,372 9,890,924 3,926,148 13,817,072 Expenses:

Governmental activities:

General government 1,990,112 1,990,112 2,004,116 2,004,116 Community development 956,018 956,018 899,797 899,797
Culture and leisure 951,626 951,626 967,345 967,345
Public safety 2,659,589 2,659,589 2,349,126 2,349,126
Public works 1,926,627 1,926,627 2,489,793 2,489,793
Interest on long term debt 33,101 33,101 11,063 11,063
Business-type activities:

Water 2,378,987 2,378,987 2,250,890 2,250,890
Sewer 1,263,891 1,263,891 1,161,838 1,161,838
Total expenses 8,517,073 3,642,878 12,159,951 8,721,240 3,412,728 12,133,968 Excess of revenue over expenses
before transfers 3,085,248 268,173 3,353,421 1,169,684 513,420 1,683,104 Transfers (760) 760
Change in net position 3,085,248 268,173 3,3531
421 1,168,924 514,180 1,683,104
Net position:

Beginning of year 32,524,848 1l,021,097 43,545,945 31,355,924 10,506,917 41,862,841 Adjustments 671!430 671!430
Beginning of year, as adjusted 33,196,278 1l,021,097 44,217,375 31,355,924 10,506,917 41,862,841 End of year $ 36,281,526 $ 11,289,270 $ 47,570,796 $ 32,524,848 $ 11,021,097 $ 43,545,945 8

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
Revenues
The City's total revenue for governmental and business-type activities was $15,513,372 for the fiscal year ended June 30, 2022. Total revenue from government-type activities were $11,602,321. Approximately 71.88%, or $11,074,607, of the City's key governmental revenue is generated from four major sources: Sales, property, transient occupancy taxes, and grants and contributions. Revenues are reported in two categories: Program Revenues and General Revenues.

Program revenues are derived from the City's functional programs which include charges for services, such as recreation and park reservation fees, and revenue from grants and capital contributions. The total change in Program revenue from the prior year for governmental and business-type activities is $359,700, or 6.4%.

1. Charges for Services - Governmental and Business-Type Activities Operating - Increase of $157,813, or 3.9%. One factor for the increase is due to revenue from park reservation fees and recreation program fees. Last fiscal year, the Stay-at-home order caused closures to the parks and Buellton Recreation Center. After the economy opened back up, park reservations through the summer experienced a high volume generating over 60% more than pre-pandemic revenue. In addition, revenue generated from recreation programs increased as more sessions and programs were offered as parents looked for more recreation activities for their children after the pandemic lockdown. Due to the new GASB 87 Leases Pronouncement, principal for lessor lease revenue is reported as charges for current services instead of use of money and property category in previous years. The change increased Charges for Services about $88,000. Business-type activity revenue is derived from water and wastewater sales and remained consistent from the prior year.

2. 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 increased by $186,697, or 12%. This was mainly due to street, road, and community enhancement operating grants for maintenance and operations renewed in the current year such as revenue from Measure A, and the Road Maintenance and Rehabilitation Account (RMRA).

General Revenues are derived of revenues that do not meet the requirement of program revenues, most of which is revenue from taxes. The following discusses variances in key revenues from the prior fiscal year:

1. Sales and Use Taxes - Sales tax revenue totaled $3,286,448 for an increase of $352,116, or 12.00% gain from the previous fiscal year. The increase is largely due to strong performance in Fuel and Service Stations, and Building and Construction. Fuel and Service Stations experienced a 62% increase from the prior year due to higher gas prices influenced by the Russia-Ukraine conflict, more commuters on the road and crude oil reaching an all-time high point. The recent addition of a new supplier and strong returns from contractors boosted building construction receipts.

2. Secured and Unsecured Property Taxes - Property tax revenues recorded in the governmental fund totaled $1,751,216 for an increase of $80,910, or 4.8%. The City's ongoing share of property tax is expected to grow at a steady rate as the assessed property values continue to increase.

3. Transient Occupancy Tax (TOT) - Governmental Activities Operating - This revenue source is a major component and top revenue source of the City's General Fund. The City receives 12% of the 9

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
total taxable hotel revenue within City limits. For the FY ended June 30, 2022, TOT totaled $4,292,382, an increase of $1,272,304 from the prior year, or 42.1%. TOT revenue surpassed prepandemic revenue of $3.1 million in FY 2018-19. The large increase is due to higher occupany rates and higher hotel prices. California's "Stay at Home" order was lifted at the end of June 2021. People were ready to travel after being at home for over a year. The monthly average occupancy rate for FY 2021-22 was 70%, FY 2020-21 was 58%, FY 2019-20 was 55% and FY 2018-19 was 65%.

Expenses
Governmental and business-type activity expenses of the City for the year totaled $12,159,951.

Governmental activity expenses totaled $8,517,073, or about 70.0% of total expenses. Business-type activities incurred $3,642,878 of expenses during the fiscal year, or about 30.0%. vernmen Activities
The table on the following page 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 safety total cost of $2,659,589 represents about 31.2% of total governmental activities expenses, the largest single expense category for governmental activities. Public safety net cost of $2,498,304 represents about 38.7% of total net cost of services. The total cost of services and the net cost of services for the fiscal years ended June 30, 2022, and 2021, are as follows:
10

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
11 Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $ 1,990,112 $ 1,901,729 $ 2,004,116 $ 1,959,900 Community development 956,018 951,018 899,797 894,797
Culture and leisure 951,626 722,033 967,345 787,129
Public safety 2,659,589 2,498,304 2,349,126 2,192,362
Public works 1,926,627 348,351 2,489,793 1,137,909
Interest of long-term debt 33,101 33,101 11,063 11,063
Total $ 8,517,073 $ 6,454,536 $ 8,721,240 $ 6,983,160
2022 2021
23%
11%
11% 31%
23%

0.389%
Governmental Activities by Program
Fiscal Year Ended June 30, 2022
General government
Community development
Culture and leisure
Public safety
Public works
Interest of long-term debt

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
12 Revenues by source for the fiscal years ended June 30, 2022, and 2021, are as follows:

Charges for services

2.74%
Operating grants

15.04%
Secured and unsecured
property taxes

15.10%
Sales and use tax

28.33%
Transient lodging tax

37.00%
Franchise taxes

3.08%
Other taxes

0.58%
Investment Income
-2.14%
Fines & Forfeitures

0.10%
Other general revenues

0.17%
Revenues by Source - Governmental Activities
2022
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

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
activities
Business-type activities increased the City's Net Position to $11,289,270. The City has two business-type activities: Water and Wastewater. Water accounts for 67.7% of total business-type activity revenue, and Wastewater accounts for 32.3%.

Total business-type revenues for the Fiscal Year ended June 30, 2022 were $3,919,744, an increase of $14,369 from the prior year. Charges for services remained steady with an increase of $26,883 (0.7%) from the prior year. The decrease for charges for current services for the Water Fund of $21,811 (0.8%) was influenced by water conservation efforts. The increase for the Wastewater Fund of $48,664 (4.0%) was due to late charges resumed on January 1, 2022 and higher sewer quantity charges for hotels and restaurants operating at a higher capacity than the prior year, when the Stay-at-Home order was in effect.

Other operating revenue decreased by $12,514 (69.5%). The decrease was attributed to revenue from an insurance refund from the prior year for a City vehicle that was deemed a total loss. Business-type interest income decreased by $44,656 (215.0%) from the prior year. The decrease was due to the low interest earning in the local Agency Investment Fund (lAIF) that created a market value adjustment.

Expenses of the business-type activities for the Fiscal Year ended June 30, 2022, totaled $3,560,758, an increase of $199,612 (5.9%) from the prior year. Of the total increases in expenses from the prior year, Water Fund operating expenses increased $103,596 (4.7%), and Wastewater Fund expenses increased $96,016 (8.5%).

Personnel services increased $286,718 (47.1%) from the previous fiscal year. The increase was mostly due to GASB 68 and GASB 7S adjustments for CalPERS retirement employer contributions and Other PostEmployment Benefit (OPEB) adjustments. Actual employee salary and benefit amounts increased by about $33,000. The increase is due to a 2% cost-of-living adjustment for full-time employees effective July 1, 2021. In addition, City Council authorized the reclassification of the Parks Foreman to Facilities Supervisor/Utility Fieldworker and Facilities Maintenance Worker to Facilities Foreman/Utility Fieldworker, which required a higher salary. Furthermore, a proposed increase in salary step levels was approved for the Maintenance and Utility Fieldworker I.

Operations and maintenance expenses decreased $14,326 (0.6%) from the previous year. Depreciation expense continues to be consistent. Non-operating expenses increased by $75,194 (244.0%) mainly due to loss in interest income and interest expense on equipment and capital lease for solar and energy improvements.
13

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
14 $-
$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 summary for the business-type activities for the fiscal year ended June 30, 2022, and 2021, are as follows:

Expenses and Program Revenues
Business-type Activities
2021
Expenses and Program Revenues
Business-type Activities
2022

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
15 The revenues by source for the business-type activities for the fiscal years ended June 30, 2022, and 2021, are as follows:

Charges for services
101.27%
Operating and
capital grants and
contributions 0.86%
Investment income
-2.12%
Revenues by Source - Business-type Activities
2022
Charges for services

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

0.53%
Revenues by Source - Business-type Activities
2021

City of Buellton, California
Basic Financial Statements
For the year ended June 30,2022
Management's Discussion and Analysis

FINANCIAL ANALYSIS OF THE GOVERNM 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. vernmen
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, 2022, the City of Buellton's governmental funds reported combined ending fund balances of $13,990,322, an increase of $2,478,165 (21.5%) in comparison with the prior fiscal year. The majority of the increase is in the General Fund with revenue from taxes increasing $1,762,529 (22.0%) from the prior year. Revenue from TOT and sales tax experienced the highest revenue of all-time exceeding prepandemic revenue.

Approximately 83.3% of this total amount ($11,649,348) constitutes unassigned fund balance. The remainder of 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 ($219,136) and restricted by other parties for a specific purpose ($2,121,838).

The General Fund is the chief operating fund of the City of Buellton. The total fund balance in the General Fund is $11,988,243 of which $11,754,863 is shown as "unassigned." As a measure of liquidity, both unassigned fund balance and total fund balances can be compared to total fund expenditures. The City Council policy goal is to have reserves of at least 35% 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 $2,319,964 during the current fiscal year. Expenditures increased $836,004 (12.1%) compared to the prior year. About $120,000 (5.9%) of the increase is in salary and benefits. Effective July 1, 2021, full-time employees were granted a 2.0% cost-ofliving adjustment. In addition, City Council authorized the reclassification of the Parks Foreman to Facilities Supervisor/Utility Fieldworker and Facilities Maintenance Worker to Facilities Foreman/Utility Fieldworker, which required a higher salary. Furthermore, a proposed increase in salary step levels was approved for the Maintenance and Utility Fieldworker I, Staff Assistant/Planning Technician and Youth Recreation Coordinator.

General operating and maintenance expenditures increased $671,302 (12.0%) compared to the prior fiscal year. The majority of the increase was in the increased cost of Sheriff Services ($307,422, or 14.62% higher than previous year). In addition, the cost for Fire Department services increased $18,800 from the prior year. Other factors that contributed to the increase in expenditures include a $25,000 increase in 16

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
the CalPERS Unfunded Accrued Liability (UAL), increase of $5,400 for community organization support, $34,305 in principal and interest expenditure, along with other increases in contract services such as the landscape maintenance contract, which now includes the Willemsen Property. Furthermore, there were various unexpected repairs throughout the City that required immediate response.

Transfers out of the General Fund decreased by $895,858 (47.7%) compared to the prior year. The majority of the decrease is due to the completion of Avenue of Flags Median 2 project. The project was completed in August 2021. The following transfers are for Capital Improvement Projects (CIPs) and account for $980,841 of General Fund expenditures. The most significant CIPs expenditures as of June 30, 2022 are:
• Completion of Road Maintenance Project FY 2020/21 expenditure • McMurray Road Widening
• Completion of Median 2 at Avenue of Flags
• ENGlE energy savings project
• Willemsen Parking Lot design
• Willemsen House renovation design
• Road Maintenance Project FY 2021/22 design
General Fund revenues totaled $10,952,769, which was an increase of $1,827,078 (20.0%) over fiscal year 20-21. The increase was attributed to several categories, the largest of which is taxes which increased $1,762,529 (22.0%). TOT revenue consisted of a $1,272,304 increase, sales tax a $352,116 increase and property tax an $80,910 increase. These revenue increases were directly related to the recovery of tourism and leisure industry and overall economic recovery after the COVID-19 pandemic. Charges for services increased $143,116 due to revenue from property leases and revenue from the Buellton Recreation Programs and park reservations.

Intergovernmental revenue increased by $131,419. Reoccurring annual intergovernmental revenue is received for the COPS Grant, Beverage Container Grant, Motor Vehicle in Lieu tax, and Motor Vehicle License Fee Compensation. The increase is mostly due to the Local Early Action Planning (LEAP) and Regional Early Action Planning (REAP) grant distributions. The City claimed $117,364 in LEAP and REAP Grants.

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

As of June 30, 2022, total Net Position for the Water Fund remained steady at $7,832,723, an increase of $274,165 (3.6%) over last fiscal year. Unrestricted Net Position amounted to $4,577,455 an increase of $281,202 (6.5%). The Net Investment in Water Capital Assets amounted to $3,002,299, a decrease of $260,006. The overall net change in the Net Position for the Water Fund is primarily due to revenue from charges for services and increase in deferred inflows of resources. 17

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
As of June 30, 2022, total Net Position for the Wastewater Fund remained steady at $3,456,547, a decrease of $5,922 (0.2%) over last fiscal year. Unrestricted Net Position amounted to $1,547,589 a decrease of $141,923 (8.4%). The Net Investment in Wastewater Capital Assets amounted to $1,908,958 an increase of $135,931. The overall net change in the Net Position for the Wastewater Fund is primarily due to deferred inflows of resources and increase in capital assets.

GENERAL FUND BUDGETARY HIGHLIGHTS
In FY 2021-22, appropriation changes between the original and final budgets amounted to an increase of $338,221 in the change in fund balance. The General Fund exceeded revenue projections while expenditures were within appropriations. Historically, the City has not expended all appropriations and does not complete all budgeted capital projects, which creates budget savings. Overall, revenue exceeded expenditures by $3,229,926. The actual net increase in Fund Balance was $2,319,964. Following is a summary of General Fund Budget variances for the period ending June 30, 2022.

SUMMARY OF GENERAL FUND BUDGET VARIANCES
Budgeted Amounts Actual Variance from
Revenues: Original Budget Final Budget Amounts Final Budget Taxes $ 7,702,479 $ 8,446,121 $ 9,754,745 $ 1,308,624
Licenses, Permits, Fees 10,080 10,080 19,155 9,075
Intergovernmental 860,533 860,533 916,564 56,031
Charges for Services 140,390 140,390 323,242 182,852
Fines and forfeitures 7,800 7,800 12,089 4,289
Use of money and property 120,000 93,000 (93,251) (186,251) Other revenues 8,950 8,950 20,225 11,275
Total Revenues 8,850,232 9,566,874 10,952,769 1,385,895 Expenditures:

General Government $ 2,086,574 $ 2,070,335 $ 1,937,179 133,156 Community Development 718,596 868,116 669,358 198,758
Cultural and leisure 819,532 857,518 865,443 (7,925)
Public Safety 2,725,148 2,725,148 2,656,349 68,799
Public Works 1,704,572 1,739,526 1,471,780 267,746
Capital Outlay 42,500 44,700 70,879 (26,179)
Debt Service:

Principal 29,280 (29,280)
Interest 22,575 !22,575)
Total Expenditures 8,096,922 8,305,343 7,722,843 582,500 Excess of Revenues over(under
expenditures) 753,310 1,261,531 3,229,926 1,968,395
Other Financing Sources:
lease liabilities issued 70,879 70,879
Transfers Out !2,342,275) !2,512,275) !98O,841) !1,531,434) Total otherfinancing sources (2,342,275) (2,512,275) (909,962) 1,602,313 Net change in Fund Balance 11,588,9651 (1,250,7441 2,319,964 3,570,708 The City adopted an amended FY 2021-22 Budget that identifies changes to City appropriations in response to the economic conditions. At the time the original budget was adopted, there was uncertainty of the length of the pandemic and its economic recovery. The City adjusted down revenues to reflect a slow economic recovery from the loss of transient occupancy tax, sales tax revenue, and revenue from 18

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
the Buellton Recreation Programs. Because the State of California was still under the Stay-At-Home Order, these revenue projections were kept conservative. 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 $2.1 million more in revenue than originally anticipated and $1.4 million more than the adjusted revenue projections. The budget had projected $2,805,704 in sales tax revenue to account for a slow recovery. Instead, the City received $480,724 more than the revised sales tax revenue projection due to strong revenue streams in Fuel and Service Stations, Building and Construction and Pools. In addition, a drastic rebound in tourism caused TOT revenue to exceed projections. The budget projected to receive about $3.6 million in TOT revenue and instead received about $4.2 million in TOT in revenue. Use of Money and Property decreased mostly due the change in reporting requirement from rent received from leases. $94,287 in revenue from the principal of leases was recorded as Charges for Services and moved from Use of Money and Property. The remaining increase in Charges for Services is due to increase in park reservations fees and revenue from Buellton Recreation Programs. The City received more Intergovernmental revenue than anticipated by $56,031. The City was awarded $65,000 in LEAP grant and $126,794 in REAP grant funding. At the time the original budget was adopted, half of each award amount was budgeted for FY 2021-22 and FY 2022-23. As of June 30, 2022 the City received about $47,000 more than anticipated for the reimbursement of LEAP and REAP expenditures.

General Fund expenditures ended the fiscal year $582,500 below budget projections. Expenditure savings resulted from deferred repair and maintenance expenditures in addition to savings from current service contracts. Transfers Out from the General Fund has a budget savings of about $1.5 million resulting from capital improvement projects that were not started, or not 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, 2022 amounts to $34,506,510 (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 $3,347,089. Of the total increase, governmental activities showed an increase of $1,460,771, resulting from an increase in net depreciable capital assets. An increase of $1,886,318 in Business-type activities capital assets is the net result of ongoing projects offset by depreciation.
19

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
Governmental Activities
2022 2021
Land 2,639,835 2,639,835
Contruction in progress 994,2SS 337,960
Total Nondepreciable Capital Assets 3,634,123 2,977,795 Buildings and improvements 8,133,231 7,970,931
Equipment 730,716 730,716
Infrastructure 23,036,768 22,393,322
Total Depreciable Capital Assets 31,900,715 31,094,969
Less: Accumulated Depreciation 9,204,955 9,203,652
Net Depreciable Capital Assets 22,695,760 21,891,317
Net Capital Assets $ 26,329,883 $ 24,869,112
$
Business-t~pe Activities Totals
2022 2021 2022 2021
247,691 $ 247,691 $ 2,887,526 $ 2,887,526
3,424,l9S 1,365,319 $ 4,41S,4S6 $ 1,703,279
3,671,889 1,613,010 7,306,012 4,590,805
582,135 574,387 8,715,366 8,545,318
861,814 861,814 1,592,530 1,592,530
13,829,470 13,639,027 36,866,238 36,032,349
15,273,419 15,075,228 47,174,134 46,170,197
10,768,681 10,397,929 19,973,636 19,601,581
4,504,738 4,677,299 27,200,498 26,568,616
8,176,627 $ 6,290,309 34,506,510 $ 31,159,421
More detail of the capital assets and current activity can be found in the notes to the financial statements on Page 38 for significant accounting policies and Note 4 on Pages 49 and SO for other capital asset information.

As of June 30, 2022, the City had about $8.6 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 V'Jater 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 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, 2022, with a comparison to prior year and the net change are as follows:

Governmental Activities Business-~pe Activities Totals
DEBT DESCRIPTION 2022 2021 2022 2021 2022 2021
Compensated absences $ 116,818 $ 100,198 $ 54,724 $ 42,413 $ 171,542 $ 142,611 Note payable - direct borrowing $ 816,342 $ 835,209 $ 3,265,370 $ 3,318,358 4,081,712 4,153,567 Lease Liabilities $ 60,466 $ $ $ 60,466
OPEB liability $ 2,212,678 $ 1,891,654 $ 913,550 $ 757,635 3,126,228 2,649,289 Net pension liability $ 917,510 $ 1,897,035 $ 334,789 $ 514,230 1,252,299 2,411,265 Total long-term liability $ 4,123,814 $ 4,724,096 $ 4,568,433 $ 4,632,636 $ 8,692,247 $ 9,356,732 Additional information on long-term debt can be found in Note 8 - Changes in Long-Term Liabilities in the notes to the basic financial statements.
20

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis

ECONOMIC OUTLOOK
The City completed FY 2021-22 with better than expected operating financial results after the budget was revised to reflect changes to City operations and improvements. The General Fund ended the 2021-22 fiscal year with a fund balance of $11,988,243. Operating expenditures approved in 2021-22 budget amount to $8,305,343. The result is a coverage ratio of about 144.3%. The General Fund cash reserves were $11,301,487 and revenue exceeded expenditure (including other financing sources) in 2022 by $2,319,964. 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 35% of the general fund's operating expenditures.

The City finished the year exceeding budgeted revenues in the all revenue categories but Use of Money and Property. As of December 2022, the federal fund rate set a target rate range of 4.25% to 4.5% compared to the 3.25% to 3.5% range previously targeted in June 2022. For the City, higher interest rates means a better return in LAIF and CDs increasing interest revenue. Additionally, higher interest rates may have an adverse effect on the economy slowing growth. The City's primary sources of revenue (TOT, Sales Tax, Property Tax, Vehicle License Fee, and Franchise Fees) account for about 94% of the City revenues.

In recent years, the City has experienced a growth in tourism, property values and population. The primary economic drivers that impact sales tax and TOT revenue is the unemployment rate and consumer confidence. A slowing economy could increase the unemployment rate resulting in less disposable income for tourism and spending, which means the City can expect lower sales tax and TOT revenue than projected in the upcoming years. The impact on sales tax and TOT will be dependent on the severity and duration of the economic slowdown, jf a slowdown were to occur.

Additionally, higher interest rates may impact future property tax revenues. During 2022, the City experienced a growth in home prices with a median home price at a high of $929,750 as of March 2022.

As of September 2022, the median home price dropped to $850,000. Rapidly increasing mortgage rates have slowed down home sales in California with a year-to-date home sales as of September 2022 decreasing by 30.2% when compared to year-to-year sales as of September 2021. Due to the time lag between the time the property values are assessed on January pt by County's assessor's office, the impact won't be known until FY 2023-24.

NEXT BUDGETED APPROPRIATIONS
The adopted budget for all City funds for the new fiscal year of 2022-23 is $19,496,430. The current adopted budget for fiscal year 2021-22 totals $21,874,460 and is summarized, with CIP expenditures shown in the Citywide CIP row of the chart on the following on the following page for consistent comparison:
21

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
FY 2022-23
General fund $ 8,676,263
Water & Sewer Funds 5,013,755
Citywide CIP Fund 5,412,412
Special revenue funds 394,000
Total budget $ 19,496,430
$
$
Amount Percentage
FY 2021-22 Chan~e Change
8,330,992 $ 345,271 4.14%
5,550,631 (536,876) (9.67)%
7,630,837 (2,218,425) (29.07)%
362,000 32,000 8.84%
21,874,460 $ (2,378,030) (10.87)%

1. General Fund - Shows an increase of $345,271. Full-time employee cost-of-living adjustment (COLA) contributes to the increase in expenditure appropriations. For all departments with Employee Services, full-time employees are receiving a 3.0 percent COLA effective July 1, 2022. In addition, full-time employees and retirees will be receiving an additional $400 per month towards their health insurance for a maximum employer contribution of $1,200. The increase is effective January 1, 2023. Other significant changes affecting the increase in General Fund expenditures are discussed below:
• City Council adopted Ordinance No.22-03 authorizing an increase in City Council's compensation. Effective January 1, 2023, the compensation for City Council Members shall be $550 per month, and $650 per month for the Mayor. Previous pay was $440 for City Council Members and the Mayor.
• City added a Part-Time Office Assistant to assist in scanning projects. • 70% of CalPERS Unfunded Accrued Liability (UAL) is paid from the General Fund. The UAL is split and budgeted in the General Fund (Non-Departmental) and the Enterprise Funds.

FY 2022-23 CalPERS Unfunded Accrued Liability (UAL) contribution of $213,762 was determined by the CalPERS Actuarial Valuation Report issued on July 2021 with the Measurement Date of June 30, 2020. An additional discretionary payment (ADP) of $84,220 is also included in the total contribution amount of $297,985. The General Fund portion is $238,385 (an increase of 85.0 percent). With the City's small staff of {{Miscellaneous" employees and no public safety, this equates to a lesser UAL than most cities. Larger jurisdictions have been severely impacted by the UAL and the CalPERS pension plan.
• Increase in transfers for Capital Improvement Projects due to prior year carryovers. Also, a new project was added to the CIP Budget. Project#092-220 construction of Willemsen Property was added with an estimated cost of $1,100,000. The $100,000 budget for design was carried over from the prior year. The projected total cost is $1,200,000. An additional $40,000 was budgeted for CEQA requirement for Project#092-221 Willemsen House Renovation.
• $50,000 increase in appropriations for the City's shared cost for anticipated GSA activities for FY 2022/23 which includes annual reports, rate study and well metering. • $33,000 one-time contribution to the Santa Ynez Botanic Garden to fund the renovation and repair of the Botanic Garden irrigation system.
22

City of Buellton, California
Basic Financial Statements
For the year ended June 30, 2022
Management's Discussion and Analysis
• Increased appropriation to reflect the new contract with Metro Ventures Ltd. for the period beginning November 10, 2022 and ending May 10, 2024 at a rate of $100 per hour, for a total contract not to exceed $72,000.

2. Water & Wastewater Funds - Shows a decrease of $536,876. The majority of the decrease includes $381,000 reduction for the cost of State Water. State Water costs decreased as the result of the payoff of the CCWA Bond Payment during FY 2021/22 that was included as part as the City's annual state water payment. Additional budget savings of about $14,000 exists as a result of upgrading to a voice-over-internet phone system from an analog system. The remaining of decrease is attributed to transfers out from reserve for capital improvement projects.

3. Citywide Capital Improvement Program (CIP) Fund - The CIP Fund expenditures relate to Capital Improvements. CIP fund shows a decrease of $2,218,425. Historically, the City does not complete all budgeted projects and are carried over to the next fiscal year. The decrease is due to the completion of the solar and energy project. Total spent during FY 2021-22 for that project was $2,592,576.

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

Quarterly reports will be presented to support the financial management of City resources to provide 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. Council has a better control of costs, while identifying financial requirements prior to the close of the fiscal year. Modifications to the original budget take place each quarter as needed.

ESTS 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. 23

Page Left Blank Intentionally.

CITY OF BUELLTON

STATEMENT OF NET POSITION
June 30, 2022
ASSETS
Cash and investments
Cash and investments - restricted
Accounts receivable, net
Interest receivable
lease receivable
Inventory
Prepaid items
Non-current assets
Lease receivable, non-current
Right to use asset
Less accumulated amortization
Capital assets:

Non Depreciable:
land
Construction in progress
Depreciable:

Buildings and improvements
Equipment
Infrastructure
Accumulated depreciation
Total non-current assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension
Deferred OPEB
Total deferred outflows of resources

LIABILITIES
Accounts payable
Accrued wages
Deposits
Interest payable
Unearned revenue
Noncurrent liabilities:

Due within one year
Compensated absences
Note payable - direct borrowing
Lease liabilities
Total due within one year
Due in more than one year
Compensated absences
Note payable - direct borrowing
lease liabilities
OPEB liability
Net pension liability
Total due in more than one year
Total liabilities

DEFERRED INFLOWS OF RESOURCES
leases
Deferred pension
Deferred OPEB
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted for:

FSA
Housing
Streets and roads
Restricted for energy conservation project
Unrestricted
Total net position
The notes to basic finanCial statements are an integral part of this statement. 25 Governmental Business-type
Activities Activities Total
13,997,354 $ 6,384,040 20,381,394
208,099 252,969 461,068
1,981,604 353,297 2,334,901
11,812 5,256 17,068
118,722 118,722
138,191 138,191
211,883 726,173 938,056
571,582 571,582
70,879 70,879
(11,055) (11,055)
2,639,835 247,691 2,887,526
994,288 3,424,198 4,418,486
8,133,231 582,135 8,715,366
730,716 861,814 1,592,530
23,036,768 13,829,470 36,866,238
(9,204,955) (10,768,681) (19,973,636)
26,961,289 8,176,627 35,137,916
43,490,763 16,036,553 59,527,316
396,790 144,785 541,575
485,774 200,562 686,336
882,564 345,347 1,227,911
721,471 103,879 825,350
130,807 36,396 167,203
327,865 34,585 362,450
10,000 40,000 50,000
1,247,540 1,247,540
28,906 10,945 39,851
16,046 64,184 80,230
15,574 15,574
60,526 75,129 135,655
87,912 43,779 131,691
800,296 3,201,186 4,001,482
44,892 44,892
2,212,678 913,550 3,126,228
917,510 334,789 1,252,299
4,063,288 4,493,304 8,556,592
6,561,497 4,783,293 11,344,790
683,051 683,051
843,419 307,754 1,151,173
3,834 1,583 5,417
1,530,304 309,337 1,839,641
25,512,899 4,911,257 30,424,156
14,244 14,244
489,912 489,912
1,617,682 1,617,682
252,969 252,969
8,646,789 6,125,044 14,771,833
36,281,526 11,289,270 47,570,796

CITY OF BUELLTON

STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2022
Governmental activities:

General government
Community development
Cultural and leisure
Public safety
Public works
Interest on long-term debt
Total governmental activities
Business-type activities:

Water
Wastewater
Total business-type activities
Total
$
$
General revenues:

Taxes:

Expenses
1,990,112
956,018
951,626
2,659,589
1,926,627
33,101
8,517,073
2,378,987
1,263,891
3,642,878
12,159,951
Property taxes
Sales and use taxes
Transient lodging tax
Franchise taxes
Other taxes
Fines and forfeitures
Investment income (loss)
Other general revenues
$
$
Charges for
Services
88,383
235,277
323,660
2,654,616
1,265,128
3,919,744
4,243,404
Total general revenues and transfers
Change in net position
Net position, beginning of fiscal year
Prior-period adjustment
Net position, July 1, restated
Net position, end of fiscal year
The notes to basic financial statements are an integral part of this statement. 26 Program Revenues
$
$
Operatmg
Contributions
and Grants
5,000
161,285
1,578,276
1,744,561
1,744,561
$
$
capital
Contributions
and Grants
15,190
15,190
15,190

$
$
Net (Expenses) Revenue and Changes in Net Position
Governmental
Activities
(1,901,729)
(951,018)
(716,349)
(2,498,304)
(348,351)
(33,101)
(6,448,852)
(6,448,852)
1,751,216
3,286,448
4,292,382
356,836
67,863
12,089
(252,959)
20,225
9,534,100
3,085,248
32,524,848
671,430
33,196,278
36,281,526
$
$
Business-type
Activities
27 290,819
1,237
292,056
292,056
(23,883)
(23,883)
268,173
11,021,097
11,021,097
11,289,270
$
$
Total
(1,901,729)
(951,018)
(716,349)
(2,498,304 )
(348,351)
(33,101)
(6,448,852)
290,819
1,237
292,056
(6,156,796)
1,751,216
3,286,448
4,292,382
356,836
67,863
12,089
(276,842)
20,225
9,510,217
3,353,421
43,545,945
671,430
44,217,375
47,570,796

FUND FINANCIAL STATEMENTS
Fund
Governmental Funds:

General Fund
American Rescue Plan Act Fund
Capital Improvement Project Fund

MAJOR FUNDS
28 Description
Primary operating fund of the City; accounts for all activities except those legally or administratively required to be accounted for in other funds.

Accounts for revenue from the American Rescue Plan Act
funding the City was allocated for fiscal recovery.

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

CITY OF BUELLTON

GOVERNMENTAL FUNDS

BALANCE SHEET
June 3D, 2022
capital
American Improvement Other
General Rescue Plan Act Project Governmental
Fund Fund Fund Funds Totals
ASSETS
Cash and investments $ 11,301,487 $ 607,517 $ 59,225 $ 2,029,125 $ 13,997,354 Cash and investments - restricted 14,244 193,855 208,099 Accounts receivable 1,246,817 610,253 124,534 1,981,604 Interest receivable 9,749 475 1,588 11,812
lease receivable 690,304 690,304
Due from other funds 136,396 136,396
Prepaid items 211,883 211,883
Total assets $ 13,610,880 $ 1,218,245 $ 253,080 $ 2,155,247 $ 17,237,452

LIABILITIES, DEFERRED INFLOWS OF RESOURCES,

AND FUND BALANCES
liabilities:

Accounts payable $ 453,880 $ $ 253,080 $ 14,511 $ 721,471 Accrued wages and benefits 130,807 130,807
Deposits 327,865 327,865
Unearned revenue 27,034 610,253 637,287
Due to other funds 136,396 136,396
Total liabilities 939,586 610,253 253,080 150,907 1,953,826 Deferred Inflows of Resources:

Unavailable revenue 610,253 610,253
leases 683,051 683,051
Total deferred inflows of resources 683,051 610,253 1,293,304 Fund Balances:

Nonspendable:

Prepaid items 211,883 211,883
leases 7,253 7,253
Restricted:

FSA 14,244 14,244
Housing 489,912 489,912
Streets, roads, and transportation 1,617,682 1,617,682
Unassigned 11,754,863 (2,261) (103,254) 11,649,348
Total fund balances 11,988,243 (2,261) 2,004,340 13,990,322 Total liabilities, deferred inflows of
resources, and fund balances $ 13,610,880 $ 1,218,245 $ 253,080 $ 2,155,247 $ 17,237,452 The notes to basic financial statements are an integral part of this statement. 29

CITY OF BUELLTON

RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET

TO THE STATEMENT OF NET POSITION
June 30, 2022
Total fund balances - governmental funds
In governmental funds, only current assets are reported. In the statement of net position, a" assets are reported, including capital assets, leased assets, accumulated depreciation, and accumulated amortization.

Capital assets at historical cost
Accumulated depreciation
Leased assets at historical cost
Accumulated amortization
Net
$ 35,534,838
(9,204,955)
70,879
(11,055)
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.

Long-term liabilities: In governmental funds, only current liabilities are reported. In the statement of net position a" liabilities, including long-term liabilities, are reported.

Long-term liabilities relating to governmental activities consist of:

Compensated absences payable
Note payable - direct borrowing
Lease liability
OPEB liability
Net pension liability
$
Total
In governmental funds, deferred outflows and inflows of resources relating to 116,818
816,342
60,466
2,212,678
917,510
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
to OPEB
Deferred inflows of resources relating:
to pensions
to OPEB
Total net position - governmental activities
$
The notes to basic financial statements are an integral part of this statement. 30 396,790
485,774
(843,419)
(3,834)
$ 13,990,322
26,389,707
(10,000)
(4,123,814)
35,311
$ 36,281,526

CITY {)F BUElLTaN

GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENQITURES, AN©CHANGES IN FUNQ BALANCES For the Fiscal Year Ended June 30, 2022
Revenues:

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

General government
Community development
Guttural and leisure
Public safety
Public w©rttS
Capital outlay
Debt Service:

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

Lease liabilities issued
Transfers in
Transfers out
Total other financing sources fuses}
Net change in fund balances
Fund balances -July 1
Fund balances -June 30
Capital
American tmprovernent Nonrnajor
General Rescue Plan Act Project Governmental
Fund Fund Fund Funds Totals
$ 9,754,745 $ - $ - $ - $ 9,754,745
19,155 105 19,260
916,564 808,737 1,725,.301
323,242 418 323,660
12,089
!A^\ ^1 !-w \ /A ni-w \ !-f w w-r\
12,089
lw AA ArI1\
10,952,769 (2,261) 801,813 11,752,321
1,937,179 1,937,179
669,358 669,358
865,443 865,443
2,656,349 2,656,349
1,471,780 160,118 1,631,898
70,879 1,462,074 1,532,953
AA •1AA 29,2$0
22,575
7,722,843 1,462,074 160,118 9,345,035
3,229,926 (2,261} (1,462,074} 641,695 2,4©7,286
7©,$79 70,$79
1,462,074 63,50fl 1,525,574
(980,841} ~544,733} (1,525,574}
(909,962} 1,462,074 (481,233} 70,879
~, ,.~ ~. ~, ~ v-~r ~ ~, ~ v.l. /
The notes to basic financial statements are an integral part of this statement. 31

CITY OF BUELLTON

RECONCILIATION OF THE STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 3D, 2022
Total net change in fund balances - governmental funds
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 $1,462,074 was more than depreciation expense ($672,733).

In governmental funds, issuance and repayments of long-term receivables are reported as expenditures or revenues respectively. In government-wide statements, these activities are reported as increases or decreases in assets. A note receivable was repaid to the City in the amount of $150,000 this year.

Right to use assets are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the length of the lease. This is the amount by which additions to right to use assets under GSAB Statement No. 87 of $70,879 is greater than amortized expense of $(11,055).

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:

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 $16,620.

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:

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.

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:

The issuance of lease payable provides current financial resources to governmental funds, while the repayment of the principal of lease payable consumes the current financial resources of governmental funds. Neither transaction has any effect on net position. The amount is the net effect of these differences in the treatment of lease payable and related items.

Lease payable recorded under GASB Statement No. 87
Principal payments on lease payable
Changes in net position - governmental activities
The notes to basic financial statements are an integral part of this statement. 32 $ (70,879)
10,413
$
$
2,478,165
789,341
(150,000)
59,824
529
(16,620)
(171,093)
18,867
136,701
(60,466)
3,085,248

Fund
Major Funds:

Water Fund
Wastewater Fund

PROPRIETARY FUNDS
33 Description
Accounts for revenues and expenses associated with the City's Water enterprise operation.

Accounts for all activities associated with the operation and maintenance of providing Sewer services.

CITY OF BUelLTON

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2022
Water Wastewater
Fund Fund Totals
ASSETS
Current assets:

Cash and investments $ 4,287,209 $ 2,096,831 $ 6,384,040 Cash and investments - restricted 252,969 252,969
Accounts receivable, net 216,447 136,850 353,297
Interest receivable 3,625 1,631 5,256
Inventory 138,191 138,191
Prepaid items 691,521 34,652 726,173
Total current assets 5,589,962 2,269,964 7,859,926
Capital assets:

Land 247,691 247,691
Construction in progress 1,892,982 1,531,216 3,424,198
Buildings and improvements 582,135 582,135
Equipment 435,002 426,812 861,814
I nfrastru ctu re 7,294,936 6,534,534 13,829,470
10,452,746 8,492,562 18,945,308
Less accumulated depreciation (5,450,408) (5,318,273) (10,768,681) Total capital assets (net of accumulated depreciation) 5,002,338 3,174,289 8,176,627 Total assets 10,592,300 5,444,253 16,036,553
DEFERRED OUTflOWS OF RESOURCES
Deferred pension 72,390 72,395 144,785
Deferred OPEB 98,624 101,938 200,562
Total deferred outflows of resources 171,014 174,333 345,347

LIABILITIES
Current liabilities:

Accounts payable 58,883 44,996 103,879
Accrued wages and benefits 18,189 18,207 36,396
Deposits 34,585 34,585
Interest payable 24,500 15,500 40,000
Compensated absences, current 4,625 6,320 10,945
Note payable - direct borrowing, current 39,313 24,871 64,184 Total current liabilities 180,095 109,894 289,989
Noncurrent liabilities:

Note payable - direct borrowing, noncurrent 1,960,726 1,240,460 3,201,186 Compensated absences 18,502 25,277 43,779
OPEB liability 449,229 464,321 913,550
Net pension liability 167,389 167,400 334,789
Total noncurrent liabilities 2,595,846 1,897,458 4,493,304 Total liabilities 2,775,941 2,007,352 4,783,293

DEFERRED INFLOWS OF RESOURCES
Deferred pension 153,872 153,882 307,754
Deferred OPEB 778 805 1,583
Total deferred inflows of resources 154,650 154,687 309,337

NET POSITION
Net investment in capital assets 3,002,299 1,908,958 4,911,257 Restricted for energy conservation project 252,969 252,969 Unrestricted 4,577,455 1,547,589 6,125,044
Total net position $ 7,832,723 $ 3,456,547 $ 11,036,301 The notes to basic financial statements are an integral part of this statement. 34

CITY OF BUELLTON

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2022
Water Wastewater
Fund Fund Totals
Operating Revenues:

Charges for services $ 2,649,723 $ 1,264,521 $ 3,914,244 Other operating revenues 4,893 607 5,500
Total operating revenues 2,654,616 1,265,128 3,919,744
Operating Expenses:

Personnel services 436,887 458,673 895,560
Operations and maintenance 1,688,728 605,718 2,294,446
Depreciation 203,074 167,678 370,752
Total operating expenses 2,328,689 1,232,069 3,560,758
Operating income (loss) 325,927 33,059 358,986
Non-Operating Revenues (Expenses):

Investment income (loss) (16,654) (7,229) (23,883)
Interest expense (50,298) (31,822) (82,120)
Total non-operating revenues (expenses) (66,952) (39,051) (106,003) Income (loss) before transfers and capital contributions 258,975 (5,992) 252,983 Capital Contributions
Capitai impact fees 15,190 15,190
Total capital contributions 15,190 15,190
Change in net position 274,165 (5,992) 268,173
Net position, July 1 7,558,558 3,462,539 11,021,097
Net position, June 30 $ 7,832,723 $ 3,456,547 $ 11,289,270 The notes to basic financial statements are an integral part of this statement. 35

CITY OF BUELLTON

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
For the Fiscal Year Ended June 3D, 2022
Water Wastewater
Fund Fund Totals
Cash Flows From Operating Activities:

Receipts from customers $ 2,704,205 $ 1,300,828 $ 4,005,033 Payments to suppliers (1,370,884) (625,284) (1,996,168) Payments to employees (343,895) (345,176) (689,071)
Net cash provided by operating activities 989,426 330,368 1,319,794 Cash Flows From Capital and Related Financing Activities:

Acquisition of capital assets (1,162,431) (1,094,639) (2,257,070) Note principal payments (32,455) (20,533) (52,988)
Interest payments (51,595) (32,643) (84,238)
Capital impact fees 15,190 15,190
Net cash used by capital and related
financing activities (1,231,291) (1,147,815) (2,379,106) Cash Flows From Investing Activities:

Investment income (loss) (18,410) (7,718) (26,128)
Net cash used by investing activities (18,410) (7,718) (26,128) Net decrease in cash and cash equivalents (260,275) (825,165) (1,085,440) Cash and cash equivalents - July 1 4,800,453 2,921,996 7,722,449 Cash and cash equivalents - June 30 $ 4,540,178 $ 2,096,831 $ 6,637,009 Reconciliation of operating income to net cash provided by operating activities:

Operating income $ 325,927 $ 33,059 $ 358,986
Adjustments to reconcile operating income to net cash
provided by operating activities:

Depreciation expense 203,074 167,678 370,752
Change in assets, deferred outflows of resources, liabilities, and deferred inflows of resources:

Receivables, net 47,664 35,700 83,364
Prepaid expenses 406,886 (12,018) 394,868
Inventories (104,229) (104,229)
Accounts and other payables 15,187 (7,548) 7,639
Accrued wages and benefits 6,669 6,677 13,346
Deposits 1,925 1,925
Compensated absences 1,920 10,391 12,311
OPES liability 70,813 85,102 155,915
Deferred outflows of resources (45,114) (48,537) (93,651) Net pension liability (90,274) (89,167) (179,441)
Deferred inflows of resources 148,978 149,031 298,009
Net cash provided by operating activities $ 989,426 $ 330,368 $ 1,319,794 The notes to basic financial statements are an integral part of this statement. 36

NOTES TO THE FINANCIAL STATEMENTS

CITY OF BUELLTON

INDEX TO NOTES TO THE FINANCIAL STATEMENTS
For the year ended June 30, 2022
Note 1-Summary of Significant Accounting Policies .............................................................................................................................. 38 Note 2 - Cash and Investments ............................................................................................................................................................... 47 Note 3 - Note Receivable ......................................................................................................................................................................... 49 Note 4 - Capital Assets ............................................................................................................................................................................ 49 Note 5 - Right to Use Lease Asset .......................... '" ............................................................................................................................... 50 Note 6 - Lease Receivable ....................................................................................................................................................................... 51 Note 7 - Long-term Liabilities .................................................................................................................................................................. 51 Note 8 - Changes in Long-term Liabilities ................................................................................................................................................ 53 Note 9 -Interfund Transactions .............................................................................................................................................................. 54 Note 10 - Risk Management .................................................................................................................................................................... 54 Note 11- Pension Plan ............................................................................................................................................................................ 56 Note 12 - Post-Employment Health Care Benefits (OPE B) ...................................................................................................................... 61 Note 13 - Contingencies and Commitments ........................................................................................................................................... 63 Note 14 - Joint Operating Agreements ................................................................................................................................................... 64 Note 15 - Deficit Fund Balance ................................................................................................................................................................ 64 Note 16 - Prior-period Adjustment ......................................................................................................................................................... 62 37

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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, GASB Statement No. 80, and GASB Statement No. 90.

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 in conformity 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 ofthe City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (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 capital 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. All remaining governmental funds 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 N 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.
38

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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. All 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. 34 defines major funds and requires that the City's major funds are identified and presented separately in the fund financial statements. All 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 plus deferred outflows, liabilities plus deferred inflows, revenues, or expenditures/expenses at least ten percent of their fund-type total or at least five percent of the total for all funds. The General 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.

American Rescue Plan Act Fund - Accounts for revenue from the American Rescue Plan Act funding the City was allocated for fiscal recovery.

Capital Improvement Project Fund Accounts for capital improvement projects by centralizing project expenditures. Projects are tracked and managed for the purposes of planning, 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 a self-supporting activity that provides services on a user-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 a self-supporting activity that provides services on a user-charge basis to residents and businesses located in the City.
39

CITY OF BUEllTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting
The government-wide and proprietary funds financial statements are reported using the economic resources 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 eligibility 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 ail eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general 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.

E. 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
Valuation/Lien Dates January 1 January 1
Levy Dates July 1 July 1
Due Dates November 1 (50%) August 1
February 1 (50%)
Delinquency Dates December 10 (Nov.) August 31
April 10 (Feb.)
40

CITY OF BUEllTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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 months 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 securities for which market quotations are readily available.

The City participates in the Local Agency Investment Fund (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 collateralizing these 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.

I. Lease Receivable
The City's lease receivable is measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the lessee's revenue. The variable payments are recorded as an inflow of resources in the period the payment is received. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. 41

CITY OF BUEllTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available.

Donated capital 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 all 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
Machinery and Equipment
I nfrastructu re
50 years
3-15 years
15-100 years
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 department 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 infrastructure be reported at historical cost and be depreciated over their estimated useful lives.

K. Right to Use Assets
The City has recorded right to use lease assets as a result of implementing GASB Statement No. 87. The right to use is initially measured at an amount equal to the initial measurement of the related lease liability plus any lease payments made prior to the lease term less lease incentives plus ancillary charges necessary to place the lease into service. The right to use assets are amortized on a straight-line basis over the life of the related lease.

L. 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 Statement of Net Position. 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 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. 42

CITY OF BUEllTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Compensated Absences
Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as incurred and the related expenses and liabilities are reported in the appropriate activity.

Fund Financial Statements
In compliance 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 General Fund is primarily responsible for the repayment of the governmental 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.

N. 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.

O. Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63, flFinancial Reporting of Deferred Outflows of Resources/ Deferred Inflows of Resources/ and Net Position," and GASB Statement No. 65, "/terns Previously Reported as Assets and Liabilities/' the City recognizes deferred outflows and inflows of resources.

In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources represents a consumption of net position by the government that applies to future periods. The City has two items that qualify for reporting in this category; refer to Note 11 and Note 12 for detailed listing of the deferred outflows of resources the City 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 an acquisition of net position by the City that applies to a future periods. The City has three items that qualify for reporting in this category; refer to Notes 6, 11, and 12 for detailed listing of the deferred inflows of resources the City has reported.

P. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information a bout the fiduciary net position of the City of Buellton's California Public Employee'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. 43

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Q. Other Postemployment Benefits (OPE B)
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 Plan'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.

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

Nonspendable 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 the lease receivable in excess of the deferred inflow of resources for the lease receivable).

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 restricted or committed in a special revenue, capital projects, debt service, or permanent 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 ofthose 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.

S. 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. Net position is classified as either net investment in capital assets, restricted, or unrestricted. 44

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) S. 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.

T. Interfund 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 principal 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 ({internal balances."
U. Budgetary Accounting
The City Council establishes budgets for the General Fund and all 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 mayor 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 to 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 30,2022. 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 3D, 2022, 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.
45

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) V. New Accounting Pronouncements
Governmental Accounting Standards Board Statement No. 87 For the fiscal year ended June 30, 2022, the City implemented Governmental Accounting Standards Board (GASB) Statement No.87, "Leases". This Statement is effective for periods beginning after June 15, 2021. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. Implementation of the GASB Statement No. 87 did have an impact on the City's financial statements for the fiscal year ended June 30, 2022, see Note 5 - Right to use asset, Note 6 - Lease receivable, and Note 7(e) - Long-term liabilities (Lease liabilities).

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

Statement No. 91 "Conduit Debt Obligations"
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. 98 "The Annual Comprehensive
Financial Report"
Statement No. 99 "Omnibus 2022"
Statement No. 100 "Accounting Changes and Error
Corrections - an amendment of GASB
Statement No. 62"
Statement No. 101 "Compensated Absences"
46 The provisions of this statement are effective
for fiscal years beginning after December 15, 2021.

The provisions of this statement except for paragraphs
llb, 13, and 14 are effective for fiscal years beginning after June 15, 2020. Paragraph llb is effective for fiscal 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
for fiscal years beginning after June 15, 2022.

The provisions of this statement are effective
for fiscai years beginning after june 15, 2022.

The provisions of this statement are effective
for fiscal years beginning after December 15, 2021.

The provisions of this statement are effective
in April 2022 except for the provisions related to
leases, PPPs, SBITAs, financial guarantees
and derivative instruments. The provisions related
to leases, PPPs, and SBITAs are effective for fiscal
years beginning after June 15, 2022. The provisions
related to financial guarantees and derivative
instruments are effective for fiscal years beginning
after June 15, 2023.

The provisions of this statement are effective
for fiscal years beginning after June 15, 2023.

The provisions of this statement are effective
for fiscal years beginning after December 15, 2023.

CITY OF BUEllTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 - CASH AND INVESTMENTS
The composition of cash and investments as of June 30, 2022, is as follows:

Cash on hand
Deposits with financial institutions
Investments
Total cash and investments
$ 700
10,675,731
10,166,031
$ 20,842,462
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
Restricted cash
Total cash and investments
$ 20,381,394
461,068
$ 20,842,462
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. Levell inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2022:

I nvestments by fa i r va I ue
Debt securities:

Negotiable certificates of deposit
Total investments measured atfairvalue
Investments measured at amortized cost:

LAIF
Money marketfunds
Total investments
Total
$ 1,404,835
1,404,835
8,554,232
206,964
$ 10,166,031
Fair Value Measurement Using
Quoted Prices in Significant
Active Markets Other
for Identical Observable
Assets Inputs
(Levell) (Level 2)
$ 1,404,835 $
$ 1,404,835 $
$
$
Significant
Unobservable
Inputs
(Level 3)
A. Investments Authorized by the California Government Code and the City's Investment Policy 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 TYQe 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 $75,000,000 47

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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 ofthe 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:

I nves tment Type
LAIF
Negotiable certificates of deposit
Money ma rket fu nds
Total
$
$
Carrying
Amount
8,554,232
1,404,835
206,964
10,166,031
12 Months
Or Less
$ 8,554,232
206,964
$ 8,761,196
Remaining Maturity (in Months)
13-24 25-60 Morethan
Months Months 60 Months
$ $ $
462,131 942,704
$ 462,131 $ 942,704 $
Generally, credit risk is 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.

I nvestment Type
LAIF
Negotiable certificates of deposit
Money ma rket funds
Total
C. Concentration of Credit Risk
$
$
Minimum
Ca rrying Legal
Amount Rating
8,554,232 N/A
1,404,835 N/A
206,964 N/A
10,166,031
Exempt
From Rating as of Fiscal Year End
Disclosure AM Not Rated
$ $ $ 8,554,232
1,404,835
206,964
$ $ - $ 10,166,031
The investment policy of the City contains no limitations on the amount that can be invested in anyone issuer beyond that stipulated by the California Government Code. There are no investments in anyone 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 ofthe Federal Depository Insurance Corporation's limits were held in uncollateralized accounts.
48

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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 Local Agency 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 LAIF, which are recorded on an amortized cost basis.

NOTE 3 - NOTE RECEIVABLE
On June 19, 2020, the City entered into a note receivable in the amount of $150,000 with its City Manager to be used for the City Manager's purchase of a home on Beech Court in 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 was secured by a deed of trust on the property. The City Council forgave $10,000 of the loan in their August 12, 2021 meeting and the remaining $140,000 was repaid in full on September 22, 2021.

NOTE 4 - CAPITAL ASSETS
Capital assets activity for the fiscal year ended June 30, 2022, was as follows:

Balance Deletions and Balance
July 1, 2021 Additions Transfers June 30, 2022
Governmental Activities
Nondepreciable capital assets:
land $ 2,639,835 $ - $ - $ 2,639,835
Construction in progress 337,960 713,017 (2,070,249) 994,288 Total nondepreciable capital assets $ 2,977,795 $ 713,017 $ (2,070,249) $ 3,634,123 Depreciable capital assets:

Buildings and improvements $ 7,970,931 $ 162,300 $ - $ 8,133,231 Property and equipment 730,716 730,716
I nfrastructu re 22,393,322 586,757 2,070,249 23,036,768 Total depreciable capital assets 31,094,969 749,057 2,070,249 31,900,715 less accumulated depreciation
Buildings and improvements 2,202,299 194,946 2,397,245
Property and equipment 717,183 21,898 739,081
Infrastructure 6,284,170 455,889 6,068,629
Total accumulated depreciation 9,203,652 672,733 9,204,955 Net depreciable capital assets $ 21,891,317 $ 76,324 $ 2,070,249 $ 22,695,760 Net capital assets $ 24,869,112 $ 789,341 $ - $ 26,329,883 49

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 4 - CAPITAL ASSETS (Continued)
Balance Balance
Jul:t 1, 2021 Additions Deletions June 30, 2022
Business-Type Activities
Nondepreciable capital assets:

Land $ 247,691 $ - $ $ 247,691
Construction in progress 1,365,319 2,058,879 3,424,198
Total nondepreciable capital assets $ 1,613,010 $ 2,058,879 $ $ 3,671,889 Depreciable capital assets:

Buildings and improvements $ 574,387 $ 7,748 $ $ 582,135 Property and equipment 861,814 861,814
Infrastructure 13,639,027 190,443 13,829,470
Total depreciable capital assets 15,075,228 198,191 15,273,419 Less accumulated depreciation
Buildings and improvements 564,985 1,224 566,209
Property and equipment 705,229 20,203 725,432
I nfrastructu re 9,127,715 349,325 9,477,040
Total accumulated depreciation 10,397,929 370,752 10,768,681 Net depreciable capital assets $ 4,677,299 $ (172,561) $ - $ 4,504,738 Net capital assets $ 6,290,309 $ 1,886,318 $ - $ 8,176,627 Depreciation expense was charged to function and programs based on their usage ofthe related assets. The amounts allocated to each function or program are as follows:

Governmental Activities:

General government
Community development
Cultural and leisure
Public safety
Public works
Total depreciation expense-governmental activities
Business-type Activities:

Water
Wastewater
Total depreciation expense-business-type activities
NOTE 5 - RIGHT TO USE LEASE ASSET
Right to use assets
Leased equipment
Total right to use assets
Less accumulated amortization for:

Leased equipment
Total accumulated amortization
Right to use assets, net
$
$
Balance
July 1, 2021
$
$
50 $
$
$
$
Additions Reductions
70,879 $
70,879
11,055
11,055
59,824 $
34,613
276,741
75,438
3,240
282,701
672,733
203,074
167,678
370,752
$
$
Balance
June 30, 2022
70,879
70,879
11,055
11,055
59,824

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 - LEASE RECEIVABLE
In July 2009, the City entered into a lease for the Visitor's Bureau. Under the lease, the Buellton Business Association/Chamber of Commerce agreed to pay the City $1,350 per month through June 2024. The monthly lease payments are waived by the City in exchange for services provided. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 3%, which is the implicit rate used for the agreement. In fiscal year 2022, the City recognized $15,513 of lease revenue and $1,146 of interest revenue under the lease.

In July 2015, the City entered into a lease with for the Post Office. Under the lease, the United States Postal Service agreed to pay the City $5,000 per month through June 2026. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of3% which is the implicit rate used for the agreement. In fiscal year 2022, the City recognized $55,720 of lease revenue and $7,501 of interest revenue under the lease.

In March of 2022, the City entered into a lease for 202 Dairyland Road. Under the lease, SYV Horseback Rides LLC agreed to pay the City $3,500 per month with annual3% increases on January 1st of each year through March 2028. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of3%. In fiscal year 2022, the City recognized $12,732 of lease revenue and $1,953 of interest revenue under the lease.

In March of 2022, the City entered into a lease for the Zaca Golf Course. Under the lease Mike Brown agreed to pay the City $1,250 per month through February 2027. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 3% which is the implicit rate used for the agreement. In fiscal year 2022, the City recognized $4,638 of lease revenue and $835 of interest revenue under the lease.

In April of 2022, the City entered into a lease for the 960 square feet of property at the Buellton Reservoir. Under the lease New Cingular Wireless PCS, LLC {AT&T} agreed to pay the City $2,500 per month starting May 1, 2022 through April 2027. The lease receivable is measured as the present value ofthe future minimum rent payments expected to be received during the lease term at a discount rate of 3% which is the implicit rate used for the agreement. In fiscal year 2022, the City recognized $4,649 of lease revenue and $664 of interest revenue under the lease.

NOTE 7 - 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 30,2022, total $116,818 for governmental activities and $54,724 for business-type activities.

B. Notes Payable - Direct Borrowing
On December 18, 2020, the City entered into a note payable agreement with Sterling National Bank. The note proceeds were 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. The note is secured by the equipment and in the event of a default, all remaining payments become due and the lessor has the right to retake possession of the equipment. Annual lease payments are due each year starting in January 2022. 51

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 7 - LONG-TERM LIABILITIES (Continued)
B. Notes Payable - Direct Borrowing (Continued)
C.

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. There was a balance of $0 remaining on the lease at June 30, 2022.

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. There was a balance of $0 remaining on the lease at June 30,2022.

Future payments are as follows:

Fiscal Year
Ending Total
June 30 Principal Interest Payments
2023 $ 80,230 $ 100,002 $ 180,232
2024 91,249 98,036 189,285
2025 102,902 95,801 198,703
2026 115,222 93,280 208,502
2027 128,239 90,457 218,696
2028-2032 825,894 401,587 1,227,481
2033-2037 1,274,345 277,915 1,552,260
2038-2041 1,463,631 93,018 1,556,649
Total S 4,081,712 S 1,250,096 S 5,331,808
Other Post-Eml2loyment Liability
In accordance with GASB Statement No. 75, the City is required to measure and report liabiiities associated with OPEB. The City's estimated OPEB liability on June 30, 2022 was $3,126,228. For governmental funds, these expenses are incurred by the General Fund. See Note 12 for further detail.

D. Net Pension Liability
In accordance with GASB Statement No. 68, the City is required to measure and report liabilities associated with its pension liability. 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, 2022, was $1,252,299. For governmental funds, these expenses are typically incurred by the General Fund. See Note 11 for further detail.

E. Lease Liabilities
The City has entered into agreements to lease certain equipment. The lease agreements qualify as other than short-term leases under GASB Statement No. 87 and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

An agreement with MailFinance, Inc. was commenced on December 9, 2019, to lease a mail machine and inserter that requires 21 quarterly payments of $921. There are no variable payment components of the lease. The lease liability is measured at a discount rate of 3%, which is the implicit rate used for the lease agreement. As a result of the lease, the City recorded as of July 1, 2021 a right to use asset with a net book value of $8,679 at June 30, 2022. The right to use asset is discussed in more detail in Note 5.

An agreement with u.s. Bank Equipment Finance was commenced on October 20,2020, to lease a scanner for the Planning Department that requires 60 monthly payments of $385. There are no variable payment components of the lease. The lease liability is measured at a discount rate of 3%, which is the implicit rate used for the lease agreement. As a result of the lease, the City recorded as of July 1,2021 a right to use asset with a net book value of $14,081 at June 30, 2022. The right to use asset is discussed in more detail in Note 5. 52

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 7 - LONG-TERM LIABILITIES (Continued)
E. lease liabilities (Continued)
An agreement with Coastal Copy, Inc was commenced on January 7, 2022, to lease Kyocera Copiers that require 60 monthly payments of $740. There are no variable payment components of the lease but there is a monthly supplies and maintenance payment of $442. The lease liability is measured at a discount rate of 3%, which is the implicit rate used for the lease agreement. As a result of the lease, the City recorded a right to use asset with a net book value of $37,064 at June 30,2022. The right to use asset is discussed in more detail in Note 5.

Future lease payments are as follows:

Year Ending Principal Interest
June 30 Payments Payments Total
2023 $ 15,574 $ 1,611 $ 17,185
2024 16,048 1,136 17,184
2025 12,865 635 13,500
2026 11,578 300 11,878
2027 4,401 39 4,440
$ 60,466 $ 3,721 $ 64,187
NOTE 8 - CHANGES IN LONG-TERM LIABILITIES
The following is a summary of long-term liability activities for the fiscal year ended June 30, 2022:

Balance Balance Due Within
July 1,2021 Additions Deletions June 30, 2022 One Year
Governmental activities:

Compensated absences $ 100,198 $ 45,526 $ 28,906 $ 116,818 $ 28,906 Note payable - direct borrowing 835,209 18,867 816,342 16,046 Lease liabilities 70,879 10,413 60,466 15,574
OPEB liability 1,891,654 429,648 108,624 2,212,678
Net pension liability 1,897,035 399,905 1,379,430 917,510 Total $ 4,724,096 $ 945,958 $ 1,546,240 $ 4,123,814 $ 60,526 Business-type activities:

Compensated absences $ 42,413 $ 37,706 $ 25,395 $ 54,724 $ 10,945 Note payable - direct borrowing 3,318,358 52,988 3,265,370 64,184 OPEB liability 757,635 177,389 21,474 913,550
Net penSion liability 514,230 145,921 325,362 334,789
Total $ 4,632,636 $ 361,016 $ 425,219 $ 4,568,433 $ 75,129 53

CITY OF BUEllTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 - 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 June 30, 2022, are as follows:

Fund Due From Due To
Major Governmental Funds:

General Fund $ 136,396 $
Nonmajor Governmental Funds:

Transportation Planning Special Revenue Fund 136,396
Total $ 136,396 -------- $ 136,396
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 2021-2022 fiscal year are as follows:

Fund Transfers In Transfers Out
Major Governmental Funds:

General Fund $ $ 980,841
Capital Improvement Project Fund 1,462,074
Nonmajor Governmental Funds:

Measure A Fund 308,045
Gas Tax Fund 236,688
Local Transportation Fund 63,500
$ 1,525,574 $ 1,525,574
NOTE 10 - RISK MANAGEMENT
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Buellton is a member ofthe CALIFORNIAJOINT 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 of self-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 on the Board of Directors. The Board operates through a nine-member Executive Committee. 54

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 3D, 2022
NOTE 10 - RISK MANAGEMENT (Continued)
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement (Continued) 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: ~=L..J...:::..u.::::.:.:;=~=...:....:::..:..:::.o.::.~:..:..:....::c:...:..::.~~:::"':::"':'-:::.1-' 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 layer. (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 2021-22 the Authority's pooled retention is $1 million per occurrence, with reinsuranceto 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 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
55

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10 - RISK MANAGEMENT (Continued)
Earthquake and Flood Insurance - The 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 liability 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 2021-22.

NOTE 11 - 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 CalPERS' Annual Comprehensive 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 Ifrisk pools"), which are comprised of individual employer miscellaneous and safety rate plans, respectively, including those ofthe 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. All 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, 2022, are summarized as shown on the following page:
56

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 11 - PENSION PLAN (Continued)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
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
January 1, 2013
2%@55
5 years service
monthly for life
50-63

1.426% to 2.418%

7.0%

11.60% + $182,863
On or after
January 1, 2013
2%@62
5 years service
monthly for life
52-67

1.0% to 2.5%

6.5%

7.73% + $1,276
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 of employees.

Contributions to the pension plan from the City were $353,125 for the fiscal year ended June 30, 2022.

B. Pension Liabilities. Pension Expenses. and Deferred Outflows/Inflows of Resources Related to Pensions At June 30,2022, the City reported a liability of $1,252,299 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30,2021, and the total pension iiabiiity used to calculate the net pension liability was determined by an actuarial valuation as of June 30,2020 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 of June 30,2021, and 2020 was as follows:

Proportion-June 30, 2020
Proportion-June 30, 2021
Change-Increase (Decrease)
Miscellaneous

0.05717%

0.06595%

0.00878%
For the fiscal year ended June 30,2022, the City recognized pension expense of $307,347. 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.
57

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 3D, 2022
NOTE 11 - PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between expected and actual experience $ 140A32 $ Net difference between projected and actual earnings on retirement plan investments 1,093,191
Changes in proportion and differences between City
contributions and proportionate share of contributions 57,982 Adjustment due to differences in proportion 48,018
City contributions subsequent to the measurement date 353,125 $ 541,575 $ 1,151,173
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. $353,125 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, 2023.

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
2023 $ (198,020)
2024 (215,930)
2025 (246,672)
2026 (302,101)
$ (962,723)
58

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 11 - 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, 2020 actuarial valuation was determined using the following actuarial assumptions:

Discount Rate
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Projected Salary Increase
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
Miscellaneous
June 30, 2020
June 30, 2021
Entry-Age Normal Cost Method

7.15%

2.50%
Varies by Entry Age and Service

7.0010 Net of Pension Plan Investment and
Administrative Expenses; includes Inflation
Derived using CalPERS' Membership
Data for all Funds (1)
Contract COLA up to 2.50010 until
Purchasing Power Protection Allowance
Floor on Purchasing Power applies;

2.50010 thereafter
(1) The mortality table used was developed based on CalPERS' 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 refer to the December 2017 experience study report.

The discount 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), CalPERS 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 of7.15 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 CalPERS' website under the GASB Statement No. 68 section.

CalPERS 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, CalPERS expects to continue using a discount rate net of administrative expenses for GASB Statements No. 67 and No. 68 calculations through at least the 2021-22 fiscal year.

CalPERS 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 a building-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. 59

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 11 - 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, CalPERS 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 a building-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 equivalent 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 using 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%
Global Fixed Income 28.0% 1.00%
Inflation Sensitive 0.0% 0.77%
Private Equity 8.0% 6.30%
Real Assets 13.0% 3.75%
Liquidity 1.0% 0.00%
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.

5.98%

2.62%

1.81%

7.23%

4.93%
-0.92%
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:

City's proportionate share of
net pension plan liability
Pension Plan Fiduciary Net Position
$
1% Decrease

6.15%
2,692,315
Current Discount Rate

7.15%
$ 1,252,299 $
1% Increase

8.15%
61,858
Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

C. Payable to the Pension Plan
At June 30,2022, the City had no amount outstanding for contributions to the pension plan required for the fiscal year ended June 30,2022.
60

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12 - POST-EMPLOYMENT HEALTH CARE BENEFITS (OPEB)
A. Plan Description
Medical coverage is provided through a single-employer CalPERS Plan under the Public Employees' Medical and Hospital Care Act (PEMHCA), also referred to as PERS Health. 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 covered PERS service, 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.

The plan is not administered through a trust and therefore no assets are accumulated in a GASB-compliant trust.

B. Employees Covered
As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the City's Plan:

Active plan members 21
Inactive plan members or beneficiaries currently receiving benefit 27 ------ Total 48 C. Contributions
The City currently finances benefits on a pay-as-you-go basis.

D. Total OPEB Liability
The City's OPEB Liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the OPEB Liability was determined by an actuarial valuation as of June 30, 202l.

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
Inflation

2.75%

5.50%
Healthcare cost trend rate 7.00% in the first year trending down to 4.04% over 56 years Pre-retirement mortality rates were based on the CalPERS tables.

Actuarial assumptions used in the July 1, 2021 valuation were based on a review of plan experience, established pattern of practice an CalPERS experience studies.

Discount rate. GASB Statement No. 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. 61

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12 - 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:

Reporting Date
June 30, 2022
June 30, 2021
Measurement Date
June 30, 2021
June 30, 2020
Changes in the OPEB Liability
Balance at June 30, 2021
(Valuation Date June 30, 2019)
Long-Term
Expected Return Municipal Bond
of Plan Investments 20 Year High Grade
(if any) Rate Index

4.00%

4.00%

1.92%

2.45%
TotalOPEB
Liability
$ 2,649,289
Changes recognized for the measurement period:

Service cost
Interest
Difference between expected and actual experience
Changes of assumptions
Contributions - em pi oyer
Implicit subsidy credit
Benefit payments
Administrative expense
Net Changes
Balance at June 30, 2022
(Measurement Date June 30, 2021)
169,675
67,472
176,021
193,869
(11,550)
(118,548)
476,939
$ 3,126,228
Discount Rate

1.92%

2.45%
Sensitivity o/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 (0.92 percent) or 1-percentage-point higher (2.92 percent) than the current discount rate:

OPEB Liability
1% Decrease

0.92%
$ 3,536,418
62 Discount Rate

1.92%
$ 3,126,228
1% Increase

2.92%
$ 2,784,875

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12 - 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 OPES liability would be if it were calculated using healthcare cost trend rates that are 1- percentage-point lower (6.00 percent decreasing to 3.04 percent) or 1-percentage-point higher (8.00 percent decreasing to 5.04 percent) than the current healthcare cost trend rates:
1% Decrease Trend Rate 1% Increase
(6.00% (7.00% (8.00%
decreasing to decreasing to decreasing to

3.04%) 4.04%) 5.04%)
OPES Liability $ 3,007,065 $ 3,126,228 $ 3,223,105
OPES Expense and Deferred Outflows/Inflows of Resources Related to OPES For the fiscal year ended June 30, 2022, the City recognized OPES expense of $396,538. As of the fiscal year ended June 30, 2022, the City reported deferred outflows and deferred inflows of resources related to OPES from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions $ 347,505 $ 5,417
Difference between expected and actual experience 203,295 OPES contributions subsequent to measurement date 135,536 $ 686,336 $ 5,417
$135,536 reported as deferred outflows of resources related to OPES 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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in the OPEB expenses as follows:

Fiscal year ending June 30, Amount
2023 $ 159,391
2024 159,998
2025 128,005
2026 83,769
2027 14,220
$ 545,383
NOTE 13 - CONTINGENCIES AND COMMITMENTS
A. Legal
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 will 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.
63

CITY OF BUELLTON

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 13 - CONTINGENCIES AND COMMITMENTS (Continued)
C. Construction and Other Significant Commitments
Listed below are the projects for uncompleted contracts outstanding as of June 30, 2022.

FY 2021-22 Road Maintenance Project with American Asphalt Wastewater Collection System Cleaning and Closed Circuit Television Inspection Services over a three year period
Solar and Energy Project with ENGlE Services U.S. Inc.

NOTE 14 - JOINT OPERATING AGREEMENTS
$ 410,453
$ 204,003
$ 252,092
Water 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 15 - DEFICIT FUND BALANCE
The following funds reported a deficit fund balance at June 30, 2022:

Major Fund:

American Rescue Plan Act Fund
Nonmajor Fund:

Transportation Planning Special Revenue Fund
NOTE 16 - PRIOR-PERIOD ADJUSTMENT
$ 2,261
$ 103,254
There is a prior-period adjustment made to the Government-wide Activities of ($671,430). This was to remove depreciation that had been expensed in the past for a construction project on Avenue of the Flags that was not yet completed until September 2021.
64

REQUIRED SUPPLEMENTAL INFORMATION SECTION

CITY OF BUELLTON

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Variance with
Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:

Taxes $ 7,702,479 $ 8,446,121 $ 9,754,745 $ 1,308,624
Licenses, permits, and fees 10,080 10,080 19,155 9,075
Intergovernmental 860,533 860,533 916,564 56,031
Charges for services 140,390 140,390 323,242 182,852
Fines and forfeitures 7,800 7,800 12,089 4,289
Use of money and property 120,000 93,000 (93,251) (186,251) Other revenues 8,950 8,950 20,225 11,275
Total revenues 8,850,232 9,566,874 10,952,769 1,385,895 Expenditures:

General government 2,086,574 2,070,335 1,937,179 133,156 Community development 718,596 868,116 669,358 198,758
Cultural and leisure 819,532 857,518 865,443 (7,925)
Public safety 2,725,148 2,725,148 2,656,349 68,799
Public works 1,704,572 1,739,526 1,471,780 267,746
Capital outlay 42,500 44,700 70,879 (26,179)
Debt Service:

Principal 29,280 (29,280)
Interest 22,575 (22,575)
Total expenditures 8,096,922 8,305,343 7,722,843 582,500 Excess of revenues
over (under) expenditures 753,310 1,261,531 3,229,926 1,968,395 Other financing sources (uses):

Lease liabilities issued 70,879 70,879
Transfers out (2,342,275) (2,512,275) (980,841) 1,531,434 Total other financing sources (uses) (2,342,275) (2,512,275) (909,962) 1,602,313 Net change in fund balance (1,588,965) (1,250,744) 2,319,964 3,570,708 Fund balance - July 1 9,668,279 9,668,279 9,668,279
Fund balance - June 30 $ 8,079,314 $ 8,417,535 $ 11,988,243 $ 3,570,708 See Notes to the Required Supplementary Information - Budgetary Comparison Schedules. 65

CITY OF BUELLTON

AMERICAN RESCUE PLAN ACT FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Variance with
Final Budget
Original Final Actual Amounts Positive (Negative)
Revenues:

Intergovernmental $ $ 610,253 $ $ (610,253)
Use of money and property (2,261) (2,261)
Total revenues 610,253 (2,261) (612,514)
Expenditures:

Public works
Total expenditures
Net change in fund balance 610,253 (2,261) (612,514)
Fund balance - July 1
Fund balance - June 30 $ $ 610,253 $ (2,261) $ (612,514) See Notes to the Required Supplementary Information - Budgetary Comparison Schedules. 66

CITY OF BUELLTON

NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY COMPARISON SCHEDULES FOR THE FISCAL YEAR ENDED JUNE 3D, 2022
NOTE 1-BUDGETARY BASIS OF ACCOUNTING
The City prepares and adopts a two-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).
67

CITY OF BUElLTON

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY Last 10 Years*
As of June 30, 2022
The following table provides required supplementary information regarding the City's Pension Plan. 2022 2021 2020
Proportion of the net pension liability 0.02316% 0.02216% 0.02201% Proportionate share of the net pension liability $ 1,252,299 $ 2,411,265 $ 2,255,555 Covered payroll $ 1,647,755 $ 1,594,414 $ 1,465,155
Proportionate share of the net pension liability
as a percentage of covered payroll 76.00% 151.23% 153.95% Plan's total pension liability $ 46,174,942,264 $ 43,702,930,887 $ 41,426,453,489 Plan's fiduciary net position $ 40,766,653,876 $ 32,822,501,335 $ 31,179,414,067 Plan fiduciary net position as a percentage
of the total pension liability 88.29% 75.10% 75.26%
2011 2016 2015
Proportion of the net pension liability 0.02131% 0.02029% 0.02162% Proportionate share of the net pension liability $ 1,844,092 $ 1,392,818 1,345,267 Covered payroll $ 1,313,499 $ 1,151,073 1,208,413
Proportionate share of the net pension liability
as a percentage of covered payroll 140.40% 121.00% 111.33% Plan's total pension liability $ 33,358,627,624 $ 31,771,217,402 30,829,966,631 Plan's fiduciary net position $ 24,705,532,291 $ 24,907,305,871 24,607,502,515 Plan fiduciary net position as a percentage
of the total pension liability 74.06% 78.40% 79.82%
Notes the Schedule:

There were no changes in assumptions or benefit terms for the fiscal year ended June 30, 2022. *- Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 68 2019 2018

0.02182% 0.02171%
$ 2,102,906 $ 2,153,367
$ 1,422,177 $ 1,472,850
147.87% 146.20%
$ 38,944,855,364 $ 37,161,348,332
$ 29,308,589,559 $ 27,244,095,376

75.26% 73.31%

CITY OF BUELLTON

SCHEDULE OF PENSION CONTRIBUTIONS
Last 10 Years*
As of June 30, 2022
The following table provides required supplementary information regarding the City's Pension Plan. 2022 2021
Contractually required contribution (actuarially determined) $ 353,125 $ 311,133 Contribution in relation to the actuarially determined
contributions (353,125) (311,133)
Contribution deficiency (excess) $ - $ -
Covered payroll $ 1,767,324 $ 1,647,755
Contributions as a percentage of covered payroll 19.98% 18.88% 2017 2016
Contractually required contribution (actuarially determined) $ 209,728 $ 180,244 Contribution in relation to the actuarially determined
contributions (209,728) (180,244)
Contribution deficiency (excess) $ - $ -
Covered payroll $ 1,472,850 $ 1,313,499
Contributions as a percentage of covered payroll 14.24% 13.72% Notes the Schedule:

There were no changes in assumptions or benefit terms for the fiscal year ended June 30, 2022. *- Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 69 2020 2019 2018
$ 342,541 $ 304,036 $ 219,633
(342,541) (304,036) (219,633)
$ - $ - $
$ 1,594,414 $ 1,465,155 $ 1,422,177

21.48% 20.75% 15.44%
2015
$ 234,747
(234,747)
$
$ 1,151,073

20.39%

CITY OF BUELLTON

SCHEDULE OF CHANGES IN THE OPEB LIABILITY AND RELATED RATIOS Last 10 Years*
As of June 30, 2022
Measurement Period 2022
Total OPEB Liability
Service cost $ 169,675
Interest on the total OPEB liability 67,472
Actual and expected experience difference 176,021
Changes in assumptions 193,869
Changes in benefit terms
Implicit rate subsidy fulfilled (11,550)
Benefit payments (118,548)
Net change in total OPEB Liability 476,939
Total OPEB liability- beginning 2,649,289
Total OPEB liability- ending (a) $ 3,126,228
Covered payroll $ 1,613,709
Total OPEB liability as a percentage
of covered payroll 193.73%
Notes the Schedule:

For the fiscal year ended June 30, 2022:

The discount rate was changed from 2.45% to 1.92%.

The rate of inflation was changed from 2.50% to 5.50%.
2021
$ 145,915
75,571
16,298
207,042
(14,910)
(113,114)
316,802
2,332,487
$ 2,649,289
$ 1,375,416
192.62%
The pre-Medicare healthcare cost trend rates increased from 6.00% to 7.00%.

The Medicare healthcare cost trend rates increased from 5.50% to 6.00%. *- Fiscal year 2018 was the 1st year of implementation, therefore only five years are shown. 70 2020 2019 2018
$ 162,592 $ 158,875 $ 154,435
73,752 66,930 58,639
117,480
142,890 (17,465)
(77,963) (4,168) (48,966)
418,751 204,172 164,108
1,913,736 1,709,564 1,545,456
$ 2,332,487 $ 1,913,736 $ 1,709,564
$ 1,307,324 $ 1,465,155 $ 1,425,694
178.42% 130.62% 119.91%

CITY OF BUEllTON

SCHEDULE OF OPEB CONTRIBUTIONS
Last 10 Years*
As of June 30, 2022
As of June 30, 2022, the plan is not administered through a qualified trust. Therefore there is no Actuarially Determined Contribution (ADC). Benefit payments of $135,536 were made on a pay-as-you-go basis for the fiscal year ended June 30,2022, $130,098 were made on a pay-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 five years are shown. 71

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SUPPLEMENTAL INFORMATION SECTION

CITY OF BUELLTON

CAPITAL IMPROVEMENT PROJECT FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Expenditures:

Capital outlay
Total expenditures
Excess of revenues over
(under) expenditures
Other financing sources (uses):

Transfers in
Total other financing sources (uses)
Net change in fund balance
Fund balance - July 1
Fund balance - June 30
$
$
73 Variance with
Final Budget
Budget Actual Amounts Positive (Negative)
7,630,837 $ 1,462,074 $ 6,168,763
7,630,837 1,462,074 6,168,763
(7,630,837) (1,462,074) 6,168,763
7,630,837 1,462,074 (6,168,763)
7,630,837 1,462,074 (6,168,763)
$ $

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NON MAJOR GOVERNMENTAL FUNDS
Fund
Non-Major Funds:

Housing Fund
Traffic Mitigation Fund
Gas Tax Fund
Measure A Fund
Local Transportation Fund
Transportation Planning Special Revenue Fund
75 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 expenditures used for local
transportation funds.

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

CITY OF BUELLTON

NON MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2022
Special Revenue Funds
Traffic Gas
Housing Mitigation Tax Measure A
Fund Fund Fund Fund
ASSETS
Cash and investments $ 489,530 $ 36,107 $ 395,023 $ 795,606 Accounts receivable 27,866 89,368
Interest receivable 382 28 309 674
Total assets $ 489,912 $ 36,135 $ 423,198 $ 885,648

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ $ $ 14,011 $
Due to other funds
Total liabilities 14,011
Fund Balances:

Restricted 489,912 36,135 409,187 885,648
Unassigned
Total fund balances (deficits) 489,912 36,135 409,187 885,648 Total liabilities and
fund balances $ 489,912 $ 36,135 $ 423,198 $ 885,648
76

Special Revenue Funds
Transportation
local Planning
Transportation Special Revenue
Fund Fund Totals
$ 286,538 $ 26,321 $ 2,029,125
7,300 124,534
174 21 1,588
$ 286,712 $ 33,642 $ 2,155,247
$ $ 500 $ 14,511
136,396 136,396
136,896 150,907
286,712 2,107,594
(103,254) (103,254)
286,712 (103,254) 2,004,340
$ 286,712 $ 33,642 $ 2,155,247
77

CITY OF BUELLTON

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 3D, 2022
Spedal Revenue Funds
Traffic Gas
Housing Mitigation Tax Measure A
Fund Fund Fund Fund
Revenues:

Licenses, permits, and fees $ $ 105 $ $
I ntergovernmenta I 314,681 480,987
Charges for services 418
Use of money and property (1,821) (135) (1,519) (3,053) Total revenues (1,403) (30) 313,162 477,934
Expenditures:

Public works 129,857
Total expenditures 129,857
Excess of revenues over
(under) expenditures (1,403) (30) 183,305 477,934
Other finandng sources (uses):

Transfers in
Transfers out (236,688) (308,045)
Total otherfinancing sources (uses) (236,688) (308,045) Net change in fund balances (1,403) (30) (53,383) 169,889 Fund balances (deficits) - July 1 491,315 36,165 462,570 715,759 Fund balances (deficits) - June 30 $ 489,912 $ 36,135 $ 409,187 $ 885,648 78

local
Transportation
Fund
$
5,769
(825)
4,944
22,961
22,961
(18,017)
63,500
63,500
45A83
241,229
$ 286,712
Special Revenue Funds
Transportation
Planning
Special Revenue
Fund
$
7,300
(94)
7,206
7,300
7,300
(94)
(94)
(103,160)
$ (103,254)
$
$
Totals
105
808,737
418
(7A47)
801,813
160,118
160,118
641,695
63,500
(544,733)
(481,233)
160A62
1,843,878
2,004,340
79

CITY OF BUELLTON

NON MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Special Revenue Funds
Housing Fund Traffic Mitigation Fund
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues
Licenses, permits, and fees $ $ $ $ $ 105 $ 105
Charges for services 225 418 193
Use of money and property 1,000 (1,821) (2,821) 80 (135) (215) Total revenues 1,225 (1,403) (2,628) 80 (30) (110)
Expenditures
Community development 3,000 3,000
Total expenditures 3,000 3,000
Net change in fund balances $ (1,775) (1,403) $ 372 $ 80 (30) $ (110) Fund balances - July 1 491,315 36,165
Fund balances - June 30 $ 489,912 $ 36,135
80

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, 2022
Special Revenue Funds
Gas Tax Fund Measure A Fund
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues
Intergovernmental $ 320,582 $ 314,681 $ (5,901) $ 390,478 $ 480,987 $ 90,509 Use of money and property 960 (1,519) (2,479) 1,152 (3,053) (4,205) Total revenues 321,542 313,162 (8,380) 391,630 477,934 86,304 Expenditures
Public works 137,000 129,857 7,143
Total expenditures 137,000 129,857 7,143
Excess of revenues over (under) expenditures 184,542 183,305 (1,237) 391,630 477,934 86,304 Other financing sources (uses):

Transfers out (474,195) (236,688) 237,507 (847,745) (308,045) 539,700 Total other financing sources (uses) (474,195) (236,688) 237,507 (847,745) (308,045) 539,700 Net change in fund balances $ (289,653) (53,383) $ 236,270 $ (456,115) 169,889 $ 626,004 Fund balances - July 1 462,570 715,759
Fund balances - June 30 $ 409,187 $ 885,648
81

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, 2022
Special Revenue Funds
Local Transportation Fund Transportation Planning Special Revenue Fund Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues
Intergovernmental $ 4,601 $ 5,769 $ 1,168 $ 50,000 $ 7,300 $ (42,700) Use of money and property 320 (825) (1,145) 64 (94) (158) Total revenues 4,921 4,944 23 50,064 7,206 (42,858)
Expenditures
Public works 64,000 22,961 41,039 45,000 7,300 37,700
Total expenditures 64,000 22,961 41,039 45,000 7,300 37,700 Excess of revenues over (under) expenditures (59,079) (18,017) 41,062 5,064 (94) (5,158) Other financing sources (uses):

Transfers in 89,079 63,500 (25,579)
Transfers out (10,000) 10,000
Total other financing sources (uses) 79,079 63,500 (15,579) Net change in fund balances $ 20,000 45,483 $ 25,483 $ 5,064 (94) $ (5,158) Fund balances (deficits) July 1 241,229 (103,160)
Fund balances (deficits) - June 30 $ 286,712 $ (103,254) 82

CITY OF BUELLTON

NON MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Special Revenue Funds
Totals
Variance
Positive
Budget Actual (Negative)
Revenues
Licenses, permits, and fees $ $ 105 $ 105
Intergovernmental 765,661 808,737 43,076
Charges for services 418 418
Use of money and property 3,576 (7,447) (l1,023)
Total revenues 769,237 801,813 32,576
Expenditures
Community development 3,000 3,000
Public works 246,000 160,118 85,882
Total expenditures 249,000 160,118 88,882
Excess of revenues over (under) expenditures 520,237 641,695 121,458 Other financing sources (uses):

Transfers in 89,079 63,500 (25,579)
Transfers out (1,331,940) (544,733) 787,207
Total other financing sources (uses) (1,242,861) (481,233) 761,628 Net change in fund balances $ (722,624) 160,462 $ 883,086 Fund balances - July 1 1,843;878
Fund balances - June 30 $ 2,004,340
83

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STATISTICAL SECTION

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

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

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

These schedules contain information to help the reader assess the affordability of the City's 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 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 information in the City's financial report relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
85 Pages
86-95
97-102
103-105
106
108-113

City of Buellton, California
Net Position by Component
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
2013 2014 2015 2016
Governmental activities
Net investment in capital assets $ 17,650,808 $ 17,499,108 $ 18,152,109 $ 18,960,813 Restricted 7,993,664 7,986,418 7,483,555 1,202,636
Unrestricted 5,323,390 5,301,357 4,312,758 4,204,654
Total governmental activities net position $ 30,967,862 $ 30,786,883 $ 29,948,422 $ 24,368,103 Business-type activities
Net investment in capital assets $ 5,420,400 $ 5,555,611 $ 5,573,002 $ 6,076,811 Restricted
Unrestricted 4,859,019 4,218,343 3,508,567 3,308,675
Total business-type activities net position $ 10,279,419 $ 9,773,954 $ 9,081,569 $ 9,385,486 Primary government
Net investment in capital assets $ 23,071,208 $ 23,054,719 $ 23,725,111 $ 25,037,624 Restricted 7,993,664 7,986,418 7,483,555 1,202,636
Unrestricted 10,182,409 9,519,700 7,821,325 7,513,329
Total primary government net position $ 41,247,281 $ 40,560,837 $ 39,029,991 $ 33,753,589 Source: City Finance Department
86

2017 2018 2019 2020 2021 2022
$ 19,488,470 $ 20,140,218 $ 20,170,546 $ 24,090,300 $ 23,695,943 $ 25,512,899 1508,316 1,286,965 1,645,445 1,472,682 1,947,038 2,121,838 4,324,620 5,823J37 7J09,927 5J92,942 6,881,867 8,646,789 $ 25,321,406 $ 27,250,920 $ 29,525,918 $ 31,355,924 $ 32524,848 $ 36,281,526 $ 5,644,028 $ 5,305,580 $ 5,129,815 $ 5,134,998 $ 5,035,332 $ 4,911,257 306,934 306,934 252,969
3,715,375 4,318,616 4,785,860 5,064,985 5,985,765 6,125,044 $ 9,359,403 $ 9,624,196 $ 10,222,609 $ 10506,917 $ 11,021,097 $ 11,289,270 $ 25,132,498 $ 25,445,798 $ 25,300,361 $ 29,225,298 $ 28,731,275 $ 30,424,156 1,508,316 1,286,965 1,952,379 1,779,616 1,947,038 2,374,807 8,039,995 10,142,353 12,495,787 10,857,927 12,867,632 14,771,833 $ 34,680,809 $ 36,875,116 $ 39,748,527 $ 41,862,841 $ 43,545,945 $ 47,570,796 87

City of Buellton, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
2013 2014 2015 2016
Expenses
Governmental activities:

General government $ l,519J71 $ 1,771,834 $ 783J69 $ 849,291 Community development 313,216 469,675 1,192,571 1,115,702 Culture and leisure 588,733 595,098 607,761 523,974
Public safety 1,872,020 1,792,569 1,801,989 1,808,093
Public works 1,526,752 2,568,183 1,959,864 1,358,122
Interest on long-term debt
Unallocated depreciation
Total governmental activities expenses 5,820,492 7,197,359 6,345,954 5,655,182 Business-type activities:

Water Utility 1,734,083 1,679,681 1,822,088 1,947,565
Wastewater Utility 847,522 453,728 957,261 1,025,834
Total business-type activities expenses 2,581,605 2,133,409 2,779,349 2,973,399 Total primary government expenses 8,402,097 9,330,768 9,125,303 8,628,581 Program revenues
Governmental activities:

Charges for services:

General government 3,975 51,250 9,095 10,260
Community development 52,400
Culture and leisure 231,337 271,231 306,560 272,682
Public safety 47,982 38,129 37,594 39,875
Public works 9,480 27,840 106,974 72,234
Operating grants and contributions 919,707 639,327 555,856 544,749 Capital grants and contributions
Total governmental activities program revenues 1,212,481 1,027,777 1,016,079 992,200 Business-type activities:

Charges for services:

Water utility 1,460,658 1,549,410 1,436,127 1,426,171
Sewer utility 649,703 695,725 734,289 727,810
Operating grants and contributions 3,250 1,699 293,817 824,934 Capital grants and contributions 36,380
Total business-type activities program revenues 2,149,991 2,246,834 2,464,233 2,978,915 Total primary government program revenues 3,362,472 3,274,611 3,480,312 3,971,115 Net (Expense)/Revenue
Governmental activities (4,608,011) (6,169,582) (5,329,875) (4,662,982) Business-type activities (431,614) 113,425 (315,116) 5,516 Total primary government net expense (5,039,625) (6,056,157) (5,644,991) (4,657,466) 88

2017 2018 2019 2020 2021 2022
$ 1,784,167 $ 1,703,992 $ 1,940,530 $ 2,339,213 $ 2,004,116 $ 1,990,112 364,935 342,972 641,947 776,855 899,797 956,018
790,357 796,225 808,482 839,109 967,345 951,626
1,922,881 1,919,643 1,996,688 2,207,959 2,349,126 2,659,589 1,722,304 1,717,639 1,681,687 1,779,746 2,489,793 1,926,627 645 875 600 390 11,063 33,101
6,585,289 6,481,346 7,069,934 7,943,272 8,721,240 8,517,073 1,955,852 1,986,774 2,157,262 2,317,545 2,250,890 2,378,987 1,099,822 1,192,648 1,206,734 1,249,792 1,152,374 1,263,891 3,055,674 3,179,422 3,363,996 3,567,337 3,403,264 3,642,878 9,640,963 9,660,768 10,433,930 11,510,609 12,124,504 12,159,951 88,383
5,000
226,932 236,551 193,581 143,841 180,216 235,277
161,285
1,405,359 1,003,979 1,210,580 2,196,978 1,557,864 1,578,276 1,632,291 1,240,530 1,404,161 2,340,819 1,738,080 2,068,221 1,917,538 2,470,525 2,557,878 2,590,392 2,681,691 2,654,616 855,684 1,091,370 1,231,024 1,203,524 1,223,684 1,265,128 75,950
224,907 295,197 32,861 15,190
2,998,129 3,857,092 3,897,713 3,793,916 3,905,375 3,934,934 4,630,420 5,097,622 5,301,874 6,134,735 5,643,455 6,003,155 (4,952,998) (5,240,816) (5,665,773) (5,602,453) (6,983,160) (6,448,852) (57,545) 677,670 533,717 226,579 502,111 292,056
(5,010,543) (4,563,146) (5,132,056) (5,375,874) (6,481,049) (6,156,796) (continued)
89

City of Buellton, California
Changes in Net Position, Continued
last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
Continued from previous page:

General Revenues and Other Changes
in Net Position:

Governmental activities:

Taxes:

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

Use of money and property
Other revenues
Transfer in (out)
Total business-type activities
Total primary government
Changes in Net Position
Governmental activities
Business-type activities
Total primary government
Source: City Finance Department
2013
1,528,000
1,744,085
1,344,904
207,922
381,358
102,197
579
5,309,045
11,401
11,401
5,320,446
701,034
(420,213)
$ 280,821
90 2014 2015 2016
1,116,510 1,146,289 2,396,533
1,935,411 1,943,723 2,044,067
1,604,086 1,830,275 1,783,807
216,444 418,586 434,866
387,905 220,140 223,302
41,160 107,885 104,364
1,192 54,257 39,300
59,073
626,822
(7,943,576)
5,988,603 5,721,155 (917,337)
7,932 8,146 10,711
287,690
(626,822)
(618,890) 8,146 298,401
5,369,713 5,729,301 (618,936)
(180,979) 391,280 (5,580,319)
(505,465) (306,970) 303,917
$ (686,444) $ 84,310 $ (5,276,402)

2017 2018 2019 2020 2021 2022
1,297,795 1,450,412 1,508,895 1,599,958 1,670,306 1,751,216 2,521,898 2,342,222 2,700,680 2,536,781 2,934,332 3,286,448 1,938,720 2,832,056 3,114,194 2,548,842 3,020,078 4,292,382 221,847 250,259 260,841 299,751 330,044 356,836
43,555 32,858 37,757 48,143 37,456 67,863
25,396 23,097 19,341 15,972 8,654 12,089
142,325 169,108 278,929 465,400 124,175 (252,959)
11,372 8,155 20,134 8,210 27,799 20,225
(68) (760)
6,202,908 7,108,167 7,940,771 7,522,989 8,152,084 9,534,100 17,030 38,315 64,696 57,661 20,773 (23,883)
(9,464)
68 760
17,030 38,315 64,696 57,729 12,069 (23,883)
6,219,938 7,146,482 8,005,467 7,580,718 8,164,153 9,510,217 1,249,910 1,867,351 2,274,998 1,920,536 1,168,924 3,085,248 (40,515) 715,985 598,413 284,308 514,180 268,173
$ 1,209,395 $ 2,583,336 $ 2,873,411 $ 2,204,844 $ 1,683,104 $ 3,353,421 (concluded)
91

City of Buellton, California
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Modified accrual basis of accounting)
General Fund:

Nonspendable
Restricted
Committed
Unassigned
Total general fund
All Other Governmental Funds:

Nonspendable
Restricted
Unassigned (deficit)
Total all other governmental funds
Total all governmental funds
Source: City Finance Department
2013
$ 98,630 $
6,169,316
5,829,005
12,096,951
201,667
1,824,348
(273,652)
1,752,363
$ 13,849,314 $
2014 2015 2016 2017
267,916 $ 211,871 $ 1,727 $ 26,036
6,173,046 6,185,439
6,050,021 6,482,765 6,733,906 6,939,241
12,490,983 12,880,075 6,735,633 6,965,277
1,667 1,667 1,667 1,667
1,813,372 1,298,116 1,202,636 1,508,316
(245,469) (193,192) (158,287) (132,106)
1,569,570 1,106,591 1,046,016 1,377,877
14,060,553 $ 13,986,666 $ 7,781,649 $ 8,343,154
92

2018 2019 2020 2021 2022
$ 116,087 $ 109,738 $ 8,351 $ 111,901 $ 219,136
1,338,606 14,244
8,311,826 10,291,995 8,478,906 8,217,772 11,754,863
8,427,913 10,401,733 8,487,257 9,668,279 11,988,243
1,667
1,285,298 1,645,445 1,472,682 1,947,038 2,107,594
(129,427) (103,453) (103,254) (103,160) (105,515)
1,157,538 1,541,992 1,369,428 1,843,878 2,002,079
$ 9,585,451 $ 11,943,725 $ 9,856,685 $ 11,512,157 $ 13,990,322 93

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: 2013 2014 2015
Taxes $ 5,246,898 $ 5,260,356 $ 5,179,413
Licenses, permits, and fees 13,666 79,181 10,854
Intergovernmental 879,078 639,327 942,106
Charges for services 165,717 189,475 284,829
Fines and forfeitures 49,261 39,203 37,508
Use of money and property 162,312 108,775 107,885
Other 4,594 14,168 169,351
Total revenues 6,521,526 6,330,485 6,731,946
Expenditures:

Current:

General government 1,317,924 1,511,614 568,229
Community development 313,216 262,175 1,192,571
Culture and leisure 575,128 590,873 591,096
Public safety 1,872,020 1,792,569 1,801,989
Public works 1,303,965 1,225,306 1,567,534
Capital outlay 510,038 1,215,104 1,089,702
Debt Service
Principal
Interest
Total expenditures 5,892,291 6,597,641 6,811,121
Reconciliation of Governmental Revenues
less Expenditures to Fund Equity:

Revenues over (under) expenditures $ 629,235 $ (267,156) $ (79,175) 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 5,288
Transfer from Successor Agency Private Purpose Trust 59,073 Extraordinary loss on dissolution of redevelopment
Lease liabilities issued
Transfers in 1,264,556 1,256,482
Transfers out (637,734) (1,256,482)
Payment to Santa Barbara County (207,500)
Total other financing sources (uses) 478,395 5,288
Net change in fund balances $ 629,235 $ 211,239 $ (73,887) Debt service as a percentage of noncapital expenditures 0% 0% 0% Source: City Finance Department
94

2016 2017 2018 2019 2020 2021 2022
$ 6,479,828 $ 6,023,815 $ 6,907,807 $ 7,622,367 $ 7,033,475 $ 7,992,216 $ 9,754,745 21,056 32,923 26,386 15,704 9,430 13,725 19,260
954,116 1,372,436 977,593 1,194,876 2,187,548 1,544,139 1,725,301 296,128 226,932 236,551 193,581 143,841 180,216 323,660 39,875 25,396 23,097 19,341 15,972 8,654 12,089
104,364 142,325 169,108 278,929 315,400 124,175 (102,959) 123,072 14,565 8,155 20,134 8,210 27,799 20,225
8,018,439 7,838,392 8,348,697 9,344,932 9,713,876 9,890,924 11,752,321 638,552 1,686,194 1,588,688 1,841,269 2,227,732 1,800,010 1,937,179 1,115,702 351,280 332,000 348,285 472,919 540,225 669,358 507,894 670,726 691,949 705,442 728,166 804,144 865,443 1,808,093 1,922,881 1,919,643 1,996,688 2,207,959 2,346,966 2,656,349 1,709,883 1,339,674 1,357,129 1,543,239 1,612,809 1,542,272 1,631,898 499,756 1,036,196 1,230,696 543,647 4,452,645 2,022,208 1,532,953 2,211 6,820 7,488 7,698 7,922 29,280
645 875 600 390 534 22,575
6,279,880 7,009,807 7,127,800 6,986,658 11,710,318 9,064,281 9,345,035 $ 1,738,559 $ 828,585 $ 1,220,897 $ 2,358,274 $ (1,996,442) $ 826,643 $ 2,407,286 (1,876,208)
(6,067,368)
16,359 21,400 829,589 70,879
557,213 51,500 1,388,849 734,024 2,488,326 2,076,818 1,525,574 (557,213) (51,500) (1,388,849) (734,024) (2,488,394) (2,077,578) (1,525,574) (7,943,576) 16,359 21,400 (68) 828,829 70,879
$ (6,205,017) $ 844,944 $ 1,242,297 $ 2,358,274 $ ~l,996,51O~ $ 1,655,472 $ 2,478,165 0% 0% 0% 0% 0% 0% 1%
95

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City of Buellton, California
Assessed Value and Actual Value of Taxable Property
For the last ten fiscal years
City
Secured Unsecured
FY 12-13 $ 677,670,315 $ 56,809,979
FY 13-14 693,882,411 58,627,154
FY 14-15 715,256,461 48,056,143
FY 15-16 749,194,282 61,290,514
FY 16-17 787,460,650 63,404,746
FY 17-18 860,755,629 65,148,264
FY 18-19 923,562,116 67,607,220
FY 19-20 978,634,993 69,160,163
FY 2Q-21 1,027,266,074 70,286,345
FY 21-22 1,062,946,768 64,190,255
Taxable
Assessed
Value
$ 734,480,294
752,509,565
763,312,604
810,484,796
850,865,396
925,903,893
991,169,336
1,047,795,156
1,097,552,419
1,127,137,023
Former Redevelopment Agency
Taxable
Assessed Total Direct
Secured Unsecured Value Tax Rate
$ 107,901,412 $ 7,364,330 $ 115,265,742 1.000'10
109,941,037 7,636,523 117,577,560 1.000%
111,820,186 7,764,135 119,584,321 1.000%
116,980,297 8,401,492 125,381,789 1.000%
122,962,558 8,346,976 131,309,534 1.000%
154,527,980 9,650,651 164,178,631 1.000'10
180,711,301 10,479,421 191,190,722 1.000%
212,503,289 10,544,416 223,047,705 1.000%
236,362,654 11,416,612 247,779,266 1.000%
250,349,017 12,298,960 262,647,977 1.000'10
Note: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% 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%). With few exceptions, property 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 Office 97

City of Buellton, California
Direct and Overlapping Tax Rates
For the last ten fiscal years
(Rate per $100 of assessed value)
FY 12-13
FY 13-14
FY 14-15
FY 15-16
FY 16-17
FY 17-18
FY 18-19
FY 19-20
FY 20-21
FY 21-22
Direct Rates
Total
Basic Rate Direct

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000

1.000
Overlapping Rates
Buellton Union Buellton Union
School District School District
1992 2004

1.000 0.0250 0.0298

1.000 0.0262 0.0304

1.000 0.0270 0.0313

1.000 0.0256 0.0313

1.000 0.0256 0.0313

1.000 0.0313

1.000 0.0313

1.000 0.0313

1.000 0.0300

1.000 0.0300
Note: 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. In addition to the 1.00% 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 98

Overlapping Rates
Buellton Union Santa Ynez Valley Total
AHCC Bond School District High School Bond Tax Redevelopment 2006 2012 2016 Rate Agency

0.0250 1.07972

0.0250 1.08157

0.0250 1.08327

0.0250 1.08192

0.0250 1.08192

0.0238 0.0297 0.0150 1.09968

0.0226 0.0297 0.0135 1.09699

0.0219 0.0282 0.0135 1.09483

0.0219 0.0270 0.0135 1.09242

0.0239 0.0270 0.0135 1.09439
99

City of Buellton, California
Principal Property Tax Payers - Secured Roll Only
Current Year and Seven Years Ago
FY 2021-22 FY 2015-16
Assessed % of Assessed % of
Property Owner Valuation Rank Total Valuation Rank Total FPA Flying Flags Associates, LP $ 19,550,831 1 15.9% $ 15,501,932 1 19.9% Ocean Park Hotels-Bl T, llC 16,542,656 2 13.5% 0.0%
Chumash Buellton Apartments, llC 16,468,837 3 13.4% 0.0% Albertson's LLC 16,240,187 4 13.2% 0.0%
RTA Buellton Hotel, LLC 10,145,622 5 8.3% 0.0%
Kang Family Partners 9,962,170 6 8.1% 8,710,915 2 11.2% VV Acquisition Company, LLC 9,917,865 7 8.1% 0.0%
Buellton Self-Storage, LP 8,478,828 8 6.9% 7,395,952 4 9.5% Kaywine, LLC 7,894,011 9 6.4% 7,104,920 6 9.1%
Buellton Village Center LLC 7,396,701 10 6.0% 7,107,382 5 9.1% RREF II-CPD Buellton, LLC 7,663,729 3 9.8%
ABS CA-O LLC 6,615,000 7 8.5%
Los Olivos Meadows, LLC 6,402,662 8 8.2%
Santa Ynez Self Storage, LLC 6,014,578 9 7.7%
Hauber Family Trust 5,331,036 10 6.8%
$ 122,597,708 100.0% $ 77,848,106 100.0%
Source: County of Santa Barbara Auditor-Controller's Office 100

City of Buellton, California
Schedule of Top 25 Principal Sales Tax Remitters (listed in alphabetical order) Current Year and Five Years Ago
Apr-June 2022
A & A Pump & Well Service
Airstream of Santa Barbara by Sky River
AJ Spurs Saloon & Dining Hall
Albertsons
Buellton Shell
Buellton Mobil
Chevron
Coast Auto Sales
Conserv Fuel
CVS Pharmacy
Eagle Energy 76
Farm Supply
Industrial Eats
Jim Vreeland Ford
McDonalds
O'Reilly Auto Parts
Platinum Performance
Rio Vista Chevrolet
Taproom & Barrelworks
The Hitching Post II
Todd Pipe & Supply
Toms Gas & Market
Tractor Supply
USA Gasoline
We Are Airstream Santa Barbara
Apr-June 2017
AJ Spurs Saloon & Dining Hall
Albertsons
Andersons Pea Soup
Buellton Shell
Buellton Mobil
Chevron
Conserv Fuel
CVS Pharmacy
Eagle Energy
Farm Supply
Habit Burger
Industrial Eats
Jim Vreeland Ford
McDonalds
Platinum Performance
Platinum Performance Vet
Rio Vista Chevrolet
Sky River RV
Taproom & Barrelworks
Terravant Wine Company
Tesoro Refining & Marketing
The Hitching Post II
Todd Pipe & Supply
Toms Gas & Market
Tractor Supply
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
101

City of Buellton, California
Property Tax Levies and Collections
For the last ten fiscal years
Fiscal
Year Taxes Levied
Ended Countywide for the
June 30, Full Cash Value Fiscal Year*
2013 $ 62,997,084,030 $ 1,098,286
2014 65,564,638,917 1,118,521
2015 69,060,903,131 1,137,192
2016 72,467,182,665 1,209,841
2017 75,421,928,742 1,267,225
2018 79,468,594,993 1,386,091
2019 83,342,402,353 1,483,663
2020 87,526,649,641 1,572,781
2021 91,982,427,875 1,651,904
2022 95,765,404,873 1,699,909
Collected within the
Fiscal Year of the Levy
Percentage
Amount of Levy
$ 1,087,164 99.0%
1,109,598 99.2%
1,127,669 99.2%
1,197,790 99.0%
1,256,864 99.2%
1,370,118 98.8%
1,466,632 98.9%
1,550,367 98.6%
1,629,118 98.6%
1,681,200 98.9%
Source: Santa Barbara County Auditor-Controller's Office Note: For the fiscal year ended June 30, 2022 as of 6/30/22 102
Collections Total Collections to Date
in Subsequent Percentage
Years Amount of Levy
$ 10,654 $ 1,097,818 100.0%
8,481 1,118,079 100.0%
8,898 1,136,567 99.9%
9,048 1,206,838 99.8%
7,856 1,264,720 99.8%
12,367 1,382,485 99.7%
12,607 1,479,239 99.7%
16,567 1,566,934 99.6%
16,172 1,645,290 99.6%
1,681,200 98.9%

City of Buellton, California
Direct and Overlapping Debt
Current Year
June 30, 2022
2021-22 Assessed Valuation:

DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:

Allan Hancock Joint Community College District - GO Bonds Santa Ynez Valley High School 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
$ 1,127,137,023
Debt Outstanding (1) % Applicable (2)
$ 130,544,991 3.665%
$
$
$
11,260,000 14.617%
5,074,000 73.075%
146,878,991
1,301,000
169,726,000
60,466
171,087,466

14.617%

1.174%
100.000%
(1) Bond Principal Balance estimated as of 6/30/2022, Certificate Balance estimated as of 6/30/22 Estimate Share
of Debt
$ 4,784,594
1,645,844
3,707,801
10,138,240
190,164
1,992,997
60,466
2,243,627
$ 12,381,867 (3)
(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, enterprise revenue and mortgage revenue bonds and non-bonded lease obligations.

Ratios to 2021-22 Assessed Valuation:

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

0.90%

1.10%
103

City of Buellton, California
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollars in thousands)
Assessed Value
Conversion Percentage
Adjusted Assessed Value
Debt Limit Percentage
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
2013
$ 677,670,315 $
25%
169,417,579
15%
25,412,637
$ 25,412,637 $
0%
2014 2015 2016
693,882,411 $ 715,256,461 $ 749,194,282
25% 25% 25%
173,470,603 178,814,115 187,298,571
15% 15% 15%
26,020,590 26,822,117 28,094,786
26,020,590 $ 26,822,117 $ 28,094,786
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 valuation 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
104

2017 2018 2019 2020 2021 2022
$ 787,460,650 $ 860,755,629 $ 923,562,116 $ 978,634,993 $ 1,027,266,074 $ 1,062,946,768 25% 25% 25% 25% 25% 25%
196,865,163 215,188,907 230,890,529 244,658,748 256,816,519 265,736,692 15% 15% 15% 15% 15% 15%
29,529,774 32,278,336 34,633,579 36,698,812 38,522,478 39,860,504 $ 29,529,774 $ 32,278,336 $ 34,633,579 $ 36,698,812 $ 38,522,478 $ 39,860,504 0% 0% 0% 0% 0% 0%
105

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City of Buellton, California
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Income
Santa Barbara County
Per Capita
Personal Income Unemployment Rate
Year Population (1) (in thousands) (2) Santa Barbara County (3) Santa Barbara County (4) 2013 4,863 $ 19,300,000 $ 45,000
2014 4,893 20,600,000 47,600
2015 4,931 21,700,000 49,600
2016 4,957 22,300,000 49,900
2017 5,129 24,200,000 53,700
2018 5,291 25,000,000 55,100
2019 5,453 26,646,853 58,600
2020 5,464 27,992,849 62,000
2021 5,185 29,502,767 66,900
2022 5,055 30,190,183 67,818
Notes:
** Information presented is for the Santa Barbara County 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, 2022, incorporating 2020 Census data (2) U.S. Dept. of Commerce Bureau of Economic Analysis, estimated amounts. (3) U.S. Dept. of Commerce Bureau of Economic Analysis. (4) State of California Employment Development Department Research Center. 107

6.3%

5.4%

4.7%

4.9%

4.3%

3.9%

3.5%

11.6%

5.9%

2.8%

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 2013 2014 2015 2016 2017
General Government
- City Council 5.00 5.00 5.00 5.00 5.00
- City Clerk / HR 1.00 1.00 1.00 1.00 1.00
- City Manager 1.00 1.00 1.00 1.00 1.00
- City Attorney *
- Finance 3.00 3.28 4.05 3.55 3.55
Community Development
- Planning 3.10 3.16 2.45 2.45 2.45
Culture and Leisure
- Parks & Recreation 3.97 5.09 6.65 6.60 7.80
- Library **
Public Safety
- Police ***
- Fire ****
Public works
- Street Lights
- Engineering
- General 7.00 9.05 8.80 8.80 8.80
Total 24.07 27.58 28.95 28.40 29.60
Note:
* Starting in FY2009 the City Attorney is contract personnel. 2018

5.00 1.00

1.00 3.55

2.27 5.53

8.61 26.96
** The City of Buellton contracted with City of Goleta to manage the Buellton Branch of the City of Goleta Library.
*** Contract with Santa Barbara County Sheriff Department for law enforcement services. 2019 2020

5.00 5.00

1.00 1.00

1.00 1.00

3.55 3.55

3.27 3.27

5.14 6.14

7.18 7.18

26.14 27.14
**** Contract with Santa Barbara County Fire Department to provide staffing at County Fire Station 31 in Buellton.

Source: City Finance Department
108
2021 2022

5.00 5.00

1.00 1.07

1.00 1.00

3.20 3.20

3.33 3.26

4.93 5.02

8.86 9.41

27.32 27.96

City of Buellton, California
Operating Indicators by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function
Police *
- Arrests
- Non-criminal Citations
Total Police Actions
Fire **
- Number of Calls for Service
- Emergency Call Responses
- Fire Prevention Activities
Total Fire Actions
Planning Permits:
- Certificate of Compliance
- Conditional Use
- Development Plan Modification
- Final Development Plan
- General Plan Amendment
- Preliminary Development Plan
- Home Occupation
- Land Use Exemption
- Lot line Adjustment
- Minor Use Permit
- Sign Ordinance Exemption
- Specific Plan
- Time Extensions
- Tentative Parcel Map
- Tentative Tract Map
- Variance
- Zoning Clearance
- Zoning Ordinance Amendment
Total planning actions
2013
231
348
579
777
186
21 984
2 1
1 3
48 2
1 2
41 101
2014 2015 2016
147 127 107
768 667 402
915 794 509
538 796 479
351 508 492
14 29 55
903 1,333 1,026
1 3
1 1
5 3 2
3 4 7 7
68 63 87
2 1 2
1 1
2 1 1
27 38 69
1 1 2
111 118 175
*Police services are provided by the Santa Barbara County Sheriff's Office. ** Fire services are provided by the Santa Barbara County Fire Department 2017
176
693
869
577
***
81 658
2 3
1 7
77 3
1 1
1 1
1 75
173
*** FY2017 and forward: Number of Calls for Service includes all Emergency Call Responses

1. 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 109
2018 2019 2020 2021 2022
172 186 209 214 185
211 318 256 134 143
383 504 465 348 328
602 675 699 680 638
*** *** *** *** ***
336 23 NA NA NA
938 698 699 680 638
1 1 1 2 2
2 1 1
2 1 1 2 5
6 3 3 6 4
110 78 75 106 154
1 2 1 1
2 3
1 1
3 2 3 3
1 1 1
1 1
63 68 30 48 43
1 4 1 1
187 156 118 173 220

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

Stations
Fire *
Fire stations
Public works
Streets (miles)
Streetlights
Parks and recreation
Parks
Sewer
Sanitary sewers (miles)
Number of pump stations
Wastewater treatment plant
Water
Water lines
Wells
Water treatment plants
Reservoirs
2013 2014 2015
1 1 1
1 1 1
22 22 22
64 64 64
2 4 4
18 18 18
2 2 2
1 1 1
27 27 27
5 5 5
2 2 2
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 110
2016
1 1
22 64
4 18
2 1
27 5
2 3

2017
1 1
22 64
4 18
2 1
27 5
2 3
2018
1 1
22 91
4 18
2 1
27 5
2 3
2019
1 1
22 91
4 18
3 1
27 5
2 3
111
2020
1 1
22 91
5 18
3 1
27 6
2 3
2021
1 1
22 91
5 18
3 1
27 6
2 3
2022
1 1
22 91
5 18
3 1
27 6
2 3

City of Buelltonl California
Capital Asset Statistics by Funds
last Ten Fiscal Years
(Fiscal year ended June 30)
Governmental-type
Land
Construction-in-progress
Buildings and improvements
Equipment
Infrastructure
Total
Accumulated depreciation
Total Accumulated depreciation
Total Governmental net capital assets
Business-type Activities
Land
Construction-in-progress
Buildings and improvements
Equipment
Infrastructure
Total
Accumulated depreciation
Total accumulated depreciation
Total Business-type net capital assets
Source: City Finance Department
2013
$ 1,536,248 $
4,221,448
425,998
16,279,484
22,463,178
(4,812,370)
17,650,808
$ 247,691 $
574,387
740,718
10,765,834
12,328,630
(6,908,230)
$ 5,420,400 $
112
2014 2015 2016
1,536,248 $ 1,536,248 $ 1,536,248
4,221,448 4,221,448 5,806,438
444,765 528,043 598,224
16,364,557 17,367,786 16,939,604
22,567,018 23,653,525 24,880,514
(5,067,910) (5,501,416) (5,919,701)
17,499,108 18,152,109 18,960,813
247,691 $ 247,691 $ 247,691
574,387 574,387 574,387
773,522 815,800 894,291
11,207,646 11,578,959 12,451,313
12,803,246 13,216,837 14,167,682
(7,247,635) (7,643,835) (8,090,871)
5,555,611 $ 5,573,002 $ 6,076,811