Buellton City Council
January 23, 2025

CITY OF BUELLTON

CITY COUNCIL AGENDA
Regular Meeting of January 23, 2025 – 6:00 p.m.

City Council Chambers, 140 West Highway 246
Buellton, California
TELECONFERENCE MEETING LOCATION:

Mayor David Silva will attend the above referenced regular City Council meeting via Zoom from the following location:
1209 L Street, Sacramento, CA 95814
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

CALL TO ORDER
Vice Mayor Elysia Lewis

PLEDGE OF ALLEGIANCE

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

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.

City Council Meeting Agenda Page 2 January 23, 2025

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 Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion.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 January 9, 2025 Regular City Council Meeting

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2024/2025

3. Monthly Treasurer’s Report – December 31, 2024
 (Staff Contact: Finance Director Shannel Zamora)

4. Ordinance No. 25-01 – “An Ordinance of the City Council of the City of Buellton, California, to Increase the Buellton Transient Occupancy Tax Rate” (Second Reading)
 (Staff Contact: City Attorney Greg Murphy)

5. Receive Fiscal Years 2025-26 and 2026-27 Biennial Budget Process Schedule  (Staff Contact: Finance Director Shannel Zamora)

6. Identification of 2025 Recognitions and Cultural Heritage Observances  (Staff Contact: City Manager Scott Wolfe)

PRESENTATIONS

7. Proclamation Recognizing International Holocaust Remembrance Day

PUBLIC HEARINGS

COUNCIL MEMBER COMMENTS/ITEMS
This Agenda listing allows Council Members to provide comments regarding recent events, contributions made or received, and future requests from City Council Members to staff.

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.

City Council Meeting Agenda Page 3 January 23, 2025

BUSINESS ITEMS (POSSIBLE ACTION)

8. CalPERS Pension Funding Update and Discussion and Direction on Options for Reducing the City’s CalPERS Pension Unfunded Accrued Liability (UAL)  (Staff Contact: Finance Director Shannel Zamora)

9. Consider Appointment to Vacant City Council Seat – District 4  (Staff Contact: City Manager Scott Wolfe)

10. Resolution No. 25-01 – “A Resolution of the City Council of the City of Buellton, California, Consenting to the Creation of the Santa Barbara County Wine Business Improvement District”
 (Staff Contact: City Manager Scott Wolfe)

11. Resolution No. 25-02 – “A Resolution of the City Council of the City of Buellton, California, in Support of the Santa Ynez Valley Community Aquatics Complex”  (Staff Contact: City Manager Scott Wolfe)
CITY MANAGER’S REPORT

CLOSED SESSION ITEMS

12. Closed Session Pursuant to Government Code Section 54956.8 Conference with Real Property Negotiator
Property: 202 Dairyland Road, Buellton, CA (APN: 099-66-032, -033, -034) Agency Negotiator: Scott Wolfe, City Manager
Negotiating Party: Horatio Partners, LLC
Under Negotiation: Price and Terms of Payment

ADJOURNMENT
The next meeting of the City Council will be held on Thursday, February 13, 2025 at 6:00 p.m.

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

CITY OF BUELLTON

CITY COUNCIL MEETING MINUTES
Regular Meeting of January 9, 2025
City Council Chambers, 140 West Highway 246
Buellton, California

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

OATH OF OFFICE – COUNCIL MEMBER JOHN SANCHEZ – DISTRICT 3

City Clerk Reid issued the Oath of Office to Council Member John Sanchez, representing District 3. Council Member Sanchez thanked his supporters and pledged to do his best to represent the City of Buellton.

PLEDGE OF ALLEGIANCE

ROLL CALL

Present: Council Members Hudson Hornick, Council Member John Sanchez, Vice Mayor Elysia Lewis, and Mayor David Silva
Staff: City Manager Scott Wolfe, City Attorney Greg Murphy (Via Zoom), Public Works Director Rose Hess, Finance Director Shannel Zamora (Via Zoom), Planning Director Andrea Keefer, and City Clerk Linda Reid

REORDERING OF AGENDA
None

PUBLIC COMMENTS
A.J. Tarman, Buellton, called for traffic calming measures on Highway 246. Mr. Tarman suggested Buellton create an architectural review board and recommended the Council consider the appointment of Dave King to represent District 4.

Holly Sierra, Buellton, representing Friends of the Library, spoke about the opening of the new Library and invited everyone to attend the “preview night” on February 7 from 6:00 to 7:00 p.m.

City Council Meeting Minutes Page 2 January 9, 2025
Larry Bishop, Buellton, discussed the underground pipeline that runs through the City of Buellton and requested the City oppose the restart of the pipeline as it could present a danger to Buellton residents.

CONSENT CALENDAR

1. Minutes of December 12, 2024 Regular City Council Meeting

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2024/2025

3. Monthly Treasurer’s Report – November 30, 2024

4. Approval of First Amendment to Lease and Agreement for the Provision of Library Management Services between the City of Buellton and the City of Goleta at the Buellton Library

Council Member Hornick requested that Item 4 be pulled for discussion.

MOTION:

Motion by Council Member Sanchez, seconded by Council Member Hornick, 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 Sanchez – Yes
Vice Mayor Lewis – Yes
Mayor Silva – Yes
City Manager Wolfe explained the First Amendment to Lease and Agreement for the Provision of Library Management Services between the City of Buellton and the City of Goleta at the Buellton Library.

MOTION:

Motion by Council Member Sanchez, seconded by Council Member Hornick, approving Consent Calendar Item 4 as listed.

VOTE:

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

Council Member Hornick – Yes
Council Member Sanchez – Yes
Vice Mayor Lewis – Yes
Mayor Silva – Yes

City Council Meeting Minutes Page 3 January 9, 2025

PRESENTATIONS

5. Proclamation Recognizing Human Trafficking Awareness Month Mayor Silva read the proclamation recognizing Human Trafficking Awareness Month.

Ann McCarty, Executive Director of the North County Rape Crisis and Child Protection Center accepted the proclamation and discussed the importance of human trafficking awareness.

6. Proclamation Recognizing Law Enforcement Appreciation Day Mayor Silva read the proclamation recognizing Law Enforcement Appreciation Day and presented it to Deputy Derek Taylor. The City Council thanked all law enforcement officers for their efforts in keeping Buellton a safe place to live and work.

PUBLIC HEARINGS

7. Ordinance No. 25-01 – “An Ordinance of the City Council of the City of Buellton, California, to Increase the Buellton Transient Occupancy Tax (TOT) Rate” (Introduction and First Reading)
RECOMMENDATION:

That the City Council consider the introduction and first reading of Ordinance No. 25-01.

STAFF REPORT:

City Attorney Murphy presented the staff report.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

SPEAKERS/DISCUSSION:

Mayor Silva opened the Public Hearing at 6:27 p.m. There being no public comment, Mayor Silva closed the Public Hearing at 6:28 p.m.

MOTION:

Motion by Vice Mayor Lewis, seconded by Council Member Sanchez, approving the introduction and first reading of Ordinance No. 25-01 – “An Ordinance of the City Council of the City of Buellton, California, to increase the Buellton Transient Occupancy Tax TOT Rate” by title only and waive further reading.

VOTE:

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

Council Member Hornick – Yes
Council Member Sanchez – Yes
Vice Mayor Lewis – Yes
Mayor Silva – Yes

City Council Meeting Minutes Page 4 January 9, 2025

COUNCIL MEMBER COMMENTS/ITEMS
Council Member Sanchez spoke about the fires in Los Angeles and stated that Buellton’s water status is very good.

Council Member Sanchez suggested that City staff contact Valley Gardener before new trees are planted to ensure they do not present a problem as they mature.

Council Member Hornick thanked Larry Bishop for discussing the risk of an active pipeline running through the City of Buellton.

Vice Mayor Lewis thanked the public for their email messages expressing support for candidates interested in the District 4 seat.

Vice Mayor Lewis spoke about traffic calming measures through Buellton and stated that Council and staff are working with Caltrans to remedy this issue.

Mayor Silva requested that residents contact Caltrans regarding issues involving Highway 246 and stated that Caltrans contact information is available on the side table as they exit the Council Chambers.

Mayor Silva requested that staff agendize discussion and possible approval of a resolution supporting the Winery Business Improvement District (Wine BID) at the January 23rd meeting.

Mayor Silva requested that staff look into re-establishing the Community Emergency Response Team (CERT) program.

WRITTEN COMMUNICATIONS
None

COMMITTEE REPORTS
Council Member Hornick announced that he attended the Green Team meeting and provided an oral report for the record.

BUSINESS ITEMS

8. Consider Appointment to Vacant City Council Seat – District 4 RECOMMENDATION:

That the City Council consider appointment to the vacant two-year District 4 Council seat.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

City Council Meeting Minutes Page 5 January 9, 2025
SPEAKERS/DISCUSSION:

Carla Mead, Buellton, discussed her desire and qualifications for filling the District 4 seat on the City Council.

Dave King, Buellton, discussed his desire and qualifications for filling the District 4 seat on the City Council.

The following individuals spoke in support of Carla Mead being appointed to the District 4 seat:
• Vivian Engel
• Larry Bishop
• Jon Mead
• Sandy Lincoln
• Sean Newton
• Seth Hudson
• Laura Benard
• Wendy Garth

A.J. Tarman, Buellton, discussed his support for Dave King being appointed to the District 4 seat.

The City Council discussed the appointment process and their respective support perspectives.

City Manager Wolfe described the options moving forward and stated a decision to appoint a representative to District 4 must be made by February 10 or the City will be forced to conduct a Special Election.

MOTION:

Motion by Council Member Hornick, seconded by Council Member Sanchez appointing Dave King to the vacant two-year District 4 seat with term of office expiring December 2026.

VOTE:

Motion tied by a roll call vote of 2-2, with Vice Mayor Lewis and Mayor Silva voting no.

Council Member Hornick – Yes
Council Member Sanchez – Yes
Vice Mayor Lewis – No
Mayor Silva – No
MOTION:

Motion by Vice Mayor Lewis, seconded by Mayor Silva appointing Carla Mead to the vacant two-year District 4 seat with term of office expiring December 2026.

City Council Meeting Minutes Page 6 January 9, 2025
VOTE:

Motion tied by a roll call vote of 2-2, with Council Members Hornick and Sanchez voting no.

Council Member Hornick – No
Council Member Sanchez – No
Vice Mayor Lewis – Yes
Mayor Silva – Yes
MOTION:

Motion by Council Member Hornick, seconded by Mayor Silva to continue this item for two weeks for further discussion and possible action.

VOTE:

Motion passed by a roll call vote of 3-1, with Vice Mayor Lewis voting no.

Council Member Hornick – Yes
Council Member Sanchez – Yes
Vice Mayor Lewis – No
Mayor Silva – Yes

9. Consideration of Appointments to the Planning Commission RECOMMENDATION:

That the City Council consider appointments to the Planning Commission with the terms of office expiring December 2026.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Council Member Hornick requested appointment of Kasey Kump to the Planning Commission with the term of office expiring December 2026.

Mayor Silva requested appointment of Brian Campbell to the Planning Commission with the term of office expiring December 2026.

Motion by Mayor Silva, seconded by Vice Mayor Lewis appointing Brian Campbell and Kasey Kump to the Planning Commission with the term of office expiring December 2026.

VOTE:

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

Council Member Hornick – Yes
Council Member Sanchez – Yes
Vice Mayor Lewis – Yes
Mayor Silva – Yes

City Council Meeting Minutes Page 7 January 9, 2025

10. Appointments to Boards, Commissions, and Committees A. Central Coast Water Authority (CCWA)
B. County Library Advisory Committee
C. Santa Barbara County Association of Governments (SBCAG) D. Air Pollution Control District (APCD)
E. California Joint Powers Insurance Authority (CJPIA)
F. League of California Cities (LOCC) – Voting Delegate G. Buellton Chamber of Commerce Board of Directors (Ex Officio Member) H. Multi-Jurisdictional Solid Waste Task Group
I. Economic Development Task Force
J. City/School District Joint Use Committee
K. Joint Cities-County Affordable Housing Task Group
L. Association of California Water Agencies/Joint Powers Insurance Authority M. Central Management Area Committee for the Sustainable Groundwater Management Act (SGMA)/JPA
N. Central Coast Community Energy (3CE) – (Policy Board/Operations Board)
O. Arts & Culture Committee
P. Other Committees Per Council Direction
The City Council agreed by consensus to nominate members of the Council to the Boards Commissions and Committees who have upcoming meetings in the next few weeks and the remainder of the nominations will be agendized for discussion at a future meeting.

Central Coast Water Authority (CCWA)
Council Member Sanchez
Mayor Silva (Alternate)
Santa Barbara County Association of Governments (SBCAG) Mayor Silva
Vice Mayor Lewis (Alternate)
Air Pollution Control District (APCD)
Mayor Silva
Vice Mayor Lewis (Alternate)
Central Management Area Committee for the Sustainable Groundwater Management Act (SGMA)
Council Member Sanchez
Council Member Hornick
DIRECTION:

The City Council agreed by consensus to appoint Council Members as listed above to the respective Boards, Commissions, and Committees for 2025.

City Council Meeting Minutes Page 8 January 9, 2025
CITY MANAGER’S REPORT
City Manager Wolfe provided an informational report for the record.

CLOSED SESSION ITEMS

11. Closed Session Pursuant to Government Code Section 54956.8 Conference with Real Property Negotiator
Property: 202 Dairyland Road, Buellton, CA (APN: 099-66-032, -033, -034) Agency Negotiator: Scott Wolfe, City Manager
Negotiating Party: Horatio Partners, LLC
Under Negotiation: Price and Terms of Payment
The City Council met in closed session to discuss Item 11. No reportable action was taken.

ADJOURNMENT
Mayor Silva adjourned the regular meeting at 8:32 p.m. The next regular meeting of the City Council will be held on Thursday, January 23, 2025 at 6:00 p.m. ____________________________
David Silva
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: January 23, 2025
Subject: List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2024/2025
______________________________________________________________________________

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 12/28/2024 through 01/10/2025 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 12/28/2024 through 01/10/2025 was $267,057.22.

FISCAL IMPACT
Payments made to the various vendors were consistent with the approved City’s Budget for 12/28/2024 through 01/10/2025. 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 12/28/2024 through 01/10/2025.

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: January 23, 2025

Subject: Monthly Treasurer’s Report – December 31, 2024 ______________________________________________________________________________

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 13, 2024, Council adopted the current Investment Policy per Resolution 24-18 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 December 31, 2024. 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 December 31, 2024.

ATTACHMENTS
Attachment 1 – Monthly Treasurer’s Report – December 31, 2024

[Type text]
A
City of Buellton
Monthly Treasurer’s Report
For the month ending in December 31, 2024
January 23, 2025
This report presents the City’s cash activity and investment portfolio as of December 31, 2024. The report includes:
1) Cash and investments at December 31, 2024 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 December 31, 2024
The following schedule is a summary of the City’s cash and investments based on recorded value as of December 31, 2024 compared with the prior month.

November 30, 2024 December 31, 2024 $ Change
Cash - Pooled $ 5,486,524.32 $ 6,319,658.87 $ 833,134.55 Investments held by the City 18,016,279.06 18,055,672.69 $ 39,393.63 TOTAL CASH AND INVESTMENTS $ 23,502,803.38 $ 24,375,331.56 $ 872,528.18 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 revenue received from property taxes and October 2024 sales tax. The value of investments also changed due to interest earnings on money market fund, Local Agency Investment Fund (LAIF) 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
A s o f D e c e m b e r 3 1 , 2 0 2 4
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The following schedule is a reconciliation of Cash and Investments to City ledger:
14,872,205.41
3,057,466.46
(1,802,170.22)
8,057,403.86
(2,612,995.10)
10,435.83
46,367.87
787,490.91
435,252.28
31,212.56
881,108.86
(22,008.96)
635,692.41
-
-
(2,130.61)
-
24,375,331.56
6,307,057.64
5,653,103.86
12,601.23
3,037,279.77
9,365,289.06
24,375,331.56
999-21000 Wages Payable - -
24,375,331.56
24,375,331.56
24,375,331.56
Per Statements: 12/31/2024
Mechanics General Checking 6,649,400.10
Mechanics Money Market 5,653,103.86
Mechanics FSA 12,601.23
Local Agengcy Investment Fund (LAIF) 9,365,289.06
Multi-Bank Securities Bank 3,037,279.77
Total Cash Per Statement: 24,717,674.02
Claim on Cash vs Total (342,342.46)
Outstanding Items: (342,342.46)
Difference: 0.00

DUE TO OTHER FUNDS
999-27000 Due To Other Funds 23,502,803.38 872,528.18
TOTAL DUE TO OTHER FUNDS 23,502,803.38 872,528.18
TOTAL: Cash in Bank 23,502,803.38 872,528.18
-
TOTAL: Cash in Bank 23,502,803.38 872,528.18
999-10004 Pooled Cash - Brokerage 3,020,445.34 16,834.43 999-10005 Pooled Cash - LAIF 9,365,289.06 -
999-10002 Pooled Cash - Money Market 5,630,544.66 22,559.20 999-10003 Pooled Cash - FSA 13,605.95 (1,004.72)
TOTAL CLAIM ON CASH 23,502,803.38 872,528.18

CASH IN BANK
Cash in Bank
999-10001 Pooled Cash - General Checking 5,472,918.37 834,139.27 091-10000 Claim On Pooled Cash - -
092-10000 Claim On Pooled Cash 121,974.90 (124,105.51)
075-10000 Claim On Pooled Cash 509,905.43 125,786.98
090-10000 Claim On Pooled Cash - -
031-10000 Claim On Pooled Cash 835,913.61 45,195.25
032-10001 Claim On Pooled Cash (22,008.96) -
027-10000 Claim On Pooled Cash 436,002.46 (750.18)
029-10000 Claim On Pooled Cash 32,202.07 (989.51)
024-10000 Claim On Pooled Cash 46,325.06 42.81
025-10000 Claim On Pooled Cash 773,927.05 13,563.86
021-10000 Claim on Pooled Cash (2,707,173.10) 94,178.00 023-10000 Claim On Pooled Cash 10,426.19 9.64
006-10000 Claim on Pooled Cash (1,802,170.22) -
020-10000 Claim On Pooled Cash 8,030,727.08 26,676.78

CLAIM ON CASH
001-10000 Claim On Pooled Cash 14,094,060.61 778,144.80 005-10000 Claim On Pooled Cash 3,142,691.20 (85,224.74) Bank Reconciliation - December 2024
City of Buellton, CA
For the Period Ending 12/31/2024
12/1/2024

BALANCE

CURRENT

ACTIVITY
12/31/2024
BALANCE ACCOUNT # ACCOUNT NAME

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
December 31, 2024
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
(months) Maturity Date Par Value Market Value
Local Agency Investment Fund - LAIF 53.31% 4.71% n/a n/a $ 9,365,289.06 $ 9,365,289.06 Morgan Stanley Bank 0.57% 1.90% 60 1/23/2025 100,000.00 99,826.00 Security Identifier: 61760A6K0
State Bk India 1.14% 1.60% 60 4/29/2025 200,000.00 198,252.00 Security Identifier: 856285TF8
Sallie Mae Bank 0.68% 0.80% 60 7/1/2025 120,000.00 117,998.40 Security Identifier: 7954506Q3
Spokane Teachers Credit Union 1.02% 0.80% 60 4/15/2027 180,000.00 182,890.80 Security Identifier: 849061AG1
Third Fed Savings 1.39% 3.50% 60 6/28/2027 245,000.00 242,030.60 Security Identifier: 88413QDL9
Morgan Stanley Bank 0.59% 3.75% 60 6/28/2027 104,000.00 103,348.96 Security Identifier: 61773TFC2
Capital One Bank 1.39% 3.75% 60 9/30/2027 244,000.00 245,825.12 Security Identifier: 14042RURO
Hickam Federal Credit Union 0.57% 3.75% 48 1/31/2028 100,000.00 100,578.00 Security Identifier: 42869GAB2
Global Federal Credit Union 1.42% 4.60% 60 4/17/2028 249,000.00 253,604.01 Security Identifier: 37892MAC8
Optum Bk Draper Utah CTF Dep 0.91% 4.45% 60 12/22/2028 160,000.00 162,584.00 Security Identifier: 68405VBV0
First Foundation Bank 0.57% 4.60% 60 5/10/2029 100,000.00 102,362.00 Security Identifier: 68405VBV0
Leaders Credit Union 0.57% 4.00% 60 8/30/2029 100,000.00 100,009.00 Security Identifier: 52171MAN5
United States Treasury Bill 6.26% 4.18% 6 5/24/2025 1,100,000.00 1,081,377.00 Security Identifier: 912797NN3
Multi-Securities Bank - Cash in Holding 46,593.88
Money Market (Held with Mechanics Bank) 29.60% 4.67% n/a 5,200,000.00 5,653,103.86 Total City Investments 100.00% $ 17,567,289.06 $ 18,055,672.69 Average Yield:3.40% Average Maturity (months): 54.92
Certificates of Deposits (Held with Multi-Securities Bank) U.S. Treasury Securities (Held with Multi-Securities Bank)

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 is a fund balance schedule showing beginning fund balance at July 1, 2024 plus revenues minus expenditures for the period, resulting in ending fund balance at December 31, 2024. 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 December 31, 2024
Balance
4,783,512.98 6,034,098.29 14,147,937.64
659,049.95 890,937.23 2,619,913.86
006 - Wastewater Capital 268,300.40 10,959.44 661,467.34 020 - Water Fund 1,548,499.62 1,412,531.46 9,907,924.00 021 - Water Capital 223,293.00 126,862.96 324,725.50
248.96 1,300.00 501,957.43
8,538.02 - 46,522.19
139,701.19 77,213.56 801,347.55
027 - Local Transportation Fund 8,765.92 9,999.96 436,686.95 029 - Transportation Planning 437.22 2,508.32 (104,467.85) 031 - Measure A 158,779.57 45,315.52 919,822.43
032 - American Relief Act Fund 268,035.48 324,115.11 (22,624.20) 075 - Trust & Agency Fund 8,308.84 - 33,305.90
090 - Long-Term Debt - - (2,944,392.98)
091 - General Fixed Assets - - 27,720,824.52
1,795,326.96
10,733,299.42 55,048,819.67
Fund Balance Report
City of Buellton, CA 12/31/2024
Fund July 1, 2024
Balance
Total Revenues
025 - Gas Tax Fund 738,859.92
001 - General Fund 15,398,522.95
005 - Sewer Fund 2,851,801.14
404,126.38
9,771,955.84
228,295.46
023 - Housing Fees 503,008.47
024 - Traffic Mitigation Fund 37,984.17
(2,130.61)
55,911,320.98 9,870,798.11
437,920.99
(102,396.75)
806,358.38
33,455.43
24,997.06
(2,944,392.98)
27,720,824.52
092 - Capital Improvement Proj Fund - 1,797,457.57

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: Greg Murphy, City Attorney
Meeting Date: January 23, 2025
Subject: Ordinance No. 25-01 - “An Ordinance of the City Council of the City of Buellton, California, to Increase the Buellton Transient Occupancy Tax Rate” (Second Reading)
______________________________________________________________________________

BACKGROUND
At the January 9, 2025 Council meeting the Council introduced for first reading Ordinance No. 25-01 to increase the amount of the Transient Occupancy Tax (TOT) rate from twelve percent (12%) to fourteen percent (14%).

FISCAL IMPACT
Staff estimates that this action will increase the general fund revenues generated by collection of the TOT in an amount of approximately $600,000 per year.

RECOMMENDATION
That the City Council consider adoption of Ordinance No. 25-01 - “An Ordinance of the City Council of the City of Buellton, California, to Increase the Buellton Transient Occupancy Tax Rate” by title only and waive further reading.

ATTACHMENTS
Ordinance No. 25-01

ORDINANCE NO. 25-01

AN ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF BUELLTON, CALIFORNIA, TO

INCREASE THE BUELLTON TRANSIENT

OCCUPANY TAX RATE

THE CITY COUNCIL OF THE CITY OF BUELLTON DOES ORDAIN AS FOLLOWS:

SECTION 1: The Ordinance involves the following:

A. Chapter 3.28 of the Buellton Municipal Code provides the provisions for the Buellton Transient Occupancy Tax (TOT), a charge for transient occupancy in hotels, motels, etc. (as defined in Section 3.28.020); and
B. Section 3.28.030 sets the TOT rate to be charged at fourteen percent (14%); and C. At the November 2024 general election, the voters of the City of Buellton adopted Measure "D2024" to amend the Buellton Municipal Code to allow the City Council to increase the amount of the TOT rate from twelve percent (12%) to a maximum fourteen percent (14%).

More specifically, Measure "D2024" amended Section 3.28.030 of the Buellton Municipal Code as follows:

“3.28.030 Rate.

For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of fourteen percent (14%) of the rent actually charged or customarily charged by the operator for the rooms and/or facilities occupied by the transient. This tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator of the hotel at the time the rent is paid. The unpaid tax is due upon the transient’s ceasing to occupy space in the hotel. If, for any reason, the tax due is not paid to the operator of the hotel, the tax administrator may require that such tax be paid directly to the tax administrator. The amount of the tax shall automatically revert to twelve percent (12%), the previous amount of the tax, on the twentyfifth anniversary of the effective date of this ordinance unless extended by a then-qualifying vote of the electorate.”
D. It is the desire of the City Council to increase the TOT rate consistent with the authority approved by the voters in Measure "D2024" and E. On January 9, 2025, prior to the adoption of this Ordinance, the City Council conducted and concluded a duly noticed public hearing concerning the increase of the TOT rate; and
F. All legal prerequisites have occurred prior to the adoption of this Ordinance.

SECTION 2: All proceedings having been duly taken as required by law, and upon review of the information provided in the staff report, consideration of the testimony given at the public hearing, as well as other pertinent information, the City Council finds the following:

Ordinance No. 25-01 Page 2 January 23, 2025
A. Record. Prior to rendering a decision on the Ordinance, the City Council considered the following:

1. All public testimony, both written and oral, received in conjunction with that certain Public Hearing conducted by the City Council on January 9, 2025 (“City Council Public Hearing”).

2. All oral, written and visual materials presented by City staff in conjunction with the City Council Public Hearing.

B. Public Review. On the basis of evidence hereinafter listed, all administrative procedures and public participation requirements have been lawfully satisfied:

1. A notice of public hearing was published in a newspaper of general circulation on December 26, 2024 (the “Public Notice”), in advance of the City Council Public Hearing conducted on January 9, 2025.

2. The Public Notice and Agenda for the City Council meeting of January 9, 2025, was posted in two conspicuous public places before the Public Hearing.

SECTION 3: The City Council hereby establishes the TOT rate at fourteen percent (14%) for collection in accordance with the provision of Chapter 3.28 Buellton Municipal Code.

SECTION 4: This Ordinance shall become effective immediately following adoption pursuant to the authority of Section 36937(d) the ordinance may be effective upon adoption, but that the effective date will be set as February 1, 2025 in order to ease the administrative burden on the parties collecting and reporting on the tax.

SECTION 5: If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Buellton hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

SECTION 6: The City Clerk shall certify to the adoption of this Ordinance and cause same to be published in accordance with California law.

PASSED, APPROVED AND ADOPTED this 23rd day of January, 2025.

__________________________________
David Silva
Mayor
ATTEST:
__________________________________
Linda Reid
City Clerk

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: Shannel Zamora, Finance Director
Meeting Date: January 23, 2025
Subject: Receive Fiscal Years 2025-26 and 2026-27 Biennial Budget Process Schedule
______________________________________________________________________________

BACKGROUND
Each budget cycle the Finance Department and City Manager work with the City Council and various Department Heads to plan and prepare the City’s Budget for the next two fiscal years. The fundamental purpose of the City’s Budget is to link short-term goals and longterm goals with the resources required to achieve these goals.

The attached Fiscal Years 2025-26 and 2026-27 Biennial Budget Process Schedule is provided for planning purposes.

FISCAL IMPACT
The acceptance of Fiscal Years 2025-26 and 2026-27 Biennial Budget Process Schedule will not cause any fiscal impact to the City.

RECOMMENDATION
That the City Council review and receive the Fiscal Years 2025-26 and 2026-27 Biennial Budget Process Schedule.

ATTACHMENTS
Attachment 1 - Fiscal Years 2025-26 and 2026-27 Biennial Budget Process Schedule

CITY OF BUELLTON, CALIFORNIA FISCAL YEAR 2025/2026 AND 2026/27 BIENNIAL BUDGET

BUDGET PROCESS SCHEDULE
January 2025 Finance Director begins to prepare budget packets for department heads.

February 13, 2025 City Council discusses budget goals and priorities to determine major objectives for the next two years.

February 28, 2025 Distribution of budget packets to department heads.

March 1, 2025 – April 18, 2025 Department heads prepare their departmental budgets.

March 27, 2025 City Council considers an employee cost of living adjustment for Fiscal Year 2025/26.

April 18, 2025 Requested departmental budgets are due to the Finance Director.

April 18, 2025-May 2, 2025 City Manager and Finance Director review budget figures submitted by department heads and discuss proposed budget with department heads.

April 24, 2025 City Council considers biennial funding for non-profit/outside agencies.

April 28, 2025-May 14, 2025 Finance Department prepares operating and capital budget using final budget figures.

May 22,2025 City Council reviews and considers Preliminary Biennial Budget.

June 12, 2025 The final budget is presented to City Council for adoption.

June 26, 2025 Alternate date to adopt biennial budget.

July 1, 2025 Biennial Budget for FY 2025/26 and FY 2026/27 implemented. First year of Biennial Budget begins. FY 2025/26.

November 13, 2025 FY 2025/26 First Quarter Report presented to City Council, budget amendments are presented if needed.

February 26, 2026 FY 2025/26 Second Quarter Report presented to City Council, budget amendments are presented if needed. Mid-Year Review.

March 2026-May 2026 Department heads determine if the second year (FY 2026/27) of the budget needs to be updated.

March 26, 2026 City Council considers an employee cost of living adjustment for Fiscal Year 2026/27
May 14, 2026 FY 2023/24 Third Quarter Report presented to City Council, budget amendments are presented if needed.

May 28, 2026 Discuss significant changes to second year of Biennial budget, revisit goals and priorities.

June 11, 2026 or June 25, 2026 Mid-Cycle Amendments to Fiscal Year 2026/27 are adopted by City Council.

July 1, 2026 Second year of Biennial Budget begins. FY 2026/27.

September 24, 2026 FY 2025/26 Fourth Quarter Report is presented to City Council, budget amendments are presented if needed.

November 12, 2026 FY 2026/27 First Quarter Report presented to City Council, budget amendments are presented if needed.

February 25, 2026 FY 2026/27 Second Quarter Report is presented to City Council, budget amendments are presented if needed.

May 13, 2026 FY 2026/27 Third Quarter Report is presented to City Council, budget amendments are presented if needed.

September 23, 2026 FY 2026/27 Fourth Quarter Report is presented to City Council, budget amendments are presented if needed.

RED = City Council Meeting Date

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: Scott Wolfe, City Manager
Meeting Date: January 23, 2025
Subject: Identification of 2025 Recognitions and Cultural Heritage Observances
______________________________________________________________________________

BACKGROUND
In January 2024, the City Council determined which observances they would recognize for the year and indicated they wanted to determine a new recognition list each year at the second Council meeting in January. Listed below are the 2024 observances:
• January 9 - Law Enforcement Appreciation Day
• January 27 – International Holocaust Remembrance Day
• May 15 - Peace Officers Memorial Day
• May – National Military Appreciation Month
• June 19 - Juneteenth
• June – Pride Month
• July 26 – Americans with Disabilities Act Day
• September – National Hispanic Heritage Month
• October 14 – Indigenous Peoples’ Day
Staff is seeking direction from the City Council on an approved list of 2025 Cultural Heritage Observances and determine if any new observances should be added to the list.

Suggested additions to the list received prior to publication are:
• April 25 – Arbor Day

RECOMMENDATION
That the City Council discuss this matter and direct staff as appropriate.

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 8

To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: January 23, 2025
Subject: CalPERS Pension Funding Update and Discussion and Direction on Options for Reducing the City’s CalPERS Pension Unfunded Accrued Liability (UAL)
______________________________________________________________________________

BACKGROUND
Employees of the City of Buellton are members of the California Public Employees Retirement System (CalPERS), which is a defined benefit pension plan. CalPERS is funded through three sources: returns on the system’s investment assets or portfolio, employee contributions by CalPERS members, and employer-paid contributions. Each year CalPERS issues annual actuarial valuation reports. The measurement date lags a couple years. The most current valuation report was issued in July 2024 with a measurement date of June 30, 2023 for FY 2025-26 contributions (Attachments 1 and 2). For the Classic Plan, the minimum required UAL contribution for FY 2025-26 is $80,893 and a plan funding ratio of 84.7%. For the PERPA Plan, the minimum required UAL contribution is $6,699 and the plan funding ratio is 90.7%. The combined total minimum required contribution for both plans for FY 2025-26 is $87,592.

On April 14, 2022, City Council adopted Resolution No. 22-12 adopting a Pension Funding Policy. The purpose of this to ensure an adequate and appropriate approach to the monitoring and payment of the City’s CalPERS unfunded liabilities. This policy allows the usage of one-time funds to achieve the following objectives:
• Reduce projected pension contributions to maintain the same levels of service. • Increase the funding ratio for both the City’s Classic and PEPRA CalPERS Plans.

The Pension Policy also states that the Finance Director shall submit a report to City Council annually that covers:
a) The funded status of the City’s pension plan
b) Major events that have impacted the funded status of each of the CalPERS plan c) Major events that are known to or are likely to occur that may impact the funding status of each plan

CalPERS UAL Page 2 January 23, 2025
At is regular City Council meeting on October 26, 2023 meeting, City Council approved staff’s recommendation to pay an ADP of $175,000 during FY 2023-24 and pay future UAL payments on a 15-year amortization. Due to annual valuations, UAL amounts can change and need to be reanalyzed. Consequently, strategies must also be reconsidered to adapt to the new figures. Following the previous recommendation, the FY 2025-26 UAL contribution amount on a 15-year amortization would be $184,869 for the Classic Plan and $12,975 for the PEPRA plan, for total UAL contribution of $197,844. The minimum required UAL contribution ($87,592) plus the $175,000 ADP would be $262,592, therefore paying more than the previously recommended contribution.

The City retains the service with GovInvest, Inc. to provide actuarial calculations, forecasting, and visualization and education services. GovInvest has developed a presentation that will cover the following (Attachment 3):
• Provide Pension benefit background information to City Council and the public regarding the City’s CalPERS plans
• Provide background information to the City Council and the public regarding the issues surrounding the CalPERS Unfunded Accrued Liability (UAL) • Provide the City Council with an understanding on the City’s current UAL funding status
• Provide the impact of the additional discretionary payment (ADP) previously made by the City
• Provide payment strategies to mitigate the City’s UAL such as:
o Make an ADP towards the FY 2025-26 in the amount $175,000. Results in about $500,000 in savings.
• Provide approaches the City can take to mitigate UAL in the future

FISCAL IMPACT
The City of Buellton’s minimum required contribution for Fiscal Year 2025-26 is $87,592.

The ADP of $175,000 will be reflected in FY 2025-26 budget with a total UAL payment of $262,592.

RECOMMENDATION
Staff recommends that City Council consider paying an ADP of $175,000 during FY 2025- 26 and include the payment in the FY 2025-26 budget.

ATTACHMENTS
Attachment 1 – Classic Actuarial Valuation Report as of June 30, 2023 Attachment 2 – PEPRA Actuarial Valuation Report as of June 30, 2023 Attachment 3 – GovInvest Presentation

California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2024
Miscellaneous Plan of the City of Buellton (CalPERS ID: 7472860304) Annual Valuation Report as of June 30, 2023
Dear Employer,
Attached to this letter is Section 1 of the June 30, 2023 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2025-26. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2023.

Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Miscellaneous Risk Pool Actuarial Valuation Report for June 30, 2023.

Required Contributions
The table below shows the minimum required employer contributions for FY 2025-26 along with an estimate of the employer contribution requirements for FY 2026-27. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
2025-26 13.38% $80,893
Projected Results
2026-27 13.4% $113,000
The actual investment return for FY 2023-24 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2023-24 differs from 6.8%, the actual contribution requirements for FY 2026-27 will differ from those shown above. For additional details regarding the assumptions and methods used for these projections, please refer to Projected Employer Contributions. This section also contains projected required contributions through FY2030-31.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304

Report Enhancements
A number of enhancements were made to the report this year to ease navigation and allow the reader to find specific information more quickly. The tables of contents are now “clickable.” This is true for the main table of contents that fo llows the title page and the intermediate tables of contents at the beginning of sections. The Adobe navigation pane on the left can also be used to skip to specific exhibits.

There are a number of links throughout the document in blue text. Links that are internal to the document are not underlined, while underlined links will take you to the CalPERS website. Examples are shown below.

Internal Bookmarks CalPERS Website Links
Required Employer Contributions Required Employer Contribution Search Tool Member Contribution Rates Public Agency PEPRA Member Contribution Rates Summary of Key Valuation Results Pension Outlook Overview Funded Status – Funding Policy Basis Interactive Summary of Public Agency Valuation Results Projected Employer Contributions Public Agency Actuarial Valuation Reports Further descriptions of general changes are included in the Highlights and Executive Summarysection and in Appendix A - Actuarial Methods and Assumptions in Section 2.

Questions
A CalPERS actuary is available to answer questions about this report. Other questions may be directed to the Customer Contact Center at 888 CalPERS (or 888-225-7377).

Sincerely,
David Clement, ASA, MAAA, EA
Senior Actuary, CalPERS
Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS

California Public Employees’ Retirement System
Actuarial Valuation for the
Miscellaneous Plan
of the City of Buellton
as of June 30, 2023
(CalPERS ID: 7472860304)
(Rate Plan ID: 1722)
Required Contributions for Fiscal Year
July 1, 2025 — June 30, 2026

Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information

Section 1
California Public Employees’ Retirement System
Plan Specific Information
for the
Miscellaneous Plan
of the
City of Buellton
(CalPERS ID: 7472860304)
(Rate Plan ID: 1722)

Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents — Section 1
Actuarial Certification....................................................................................................................................................................................1 Highlights and Executive Summary ..........................................................................................................................................................2 Introduction....................................................................................................................................................................................................3 Purpose of Section 1....................................................................................................................................................................................3 Summary of Key Valuation Results ...........................................................................................................................................................4 Changes Since the Prior Year’s Valuation................................................................................................................................................5 Subsequent Events.......................................................................................................................................................................................5 Liabilities and Contributions .......................................................................................................................................................................6 Determination of Required Contributions..................................................................................................................................................7 Required Employer Contributions ..............................................................................................................................................................8 Member Contribution Rates ........................................................................................................................................................................9 Other Pooled Miscellaneous Risk Pool Rate Plans.............................................................................................................................. 10 Breakdown of Entry Age Accrued Liability............................................................................................................................................. 11 Allocation of Plan’s Share of Pool’s Experience...................................................................................................................................11 Development of the Plan’s Share of Pool’s Assets .............................................................................................................................. 11 Funded Status – Funding Policy Basis................................................................................................................................................... 12 Additional Employer Contributions.......................................................................................................................................................... 13 Projected Employer Contributions........................................................................................................................................................... 14 Schedule of Amortization Bases.............................................................................................................................................................. 15 Amortization Schedule and Alternatives ................................................................................................................................................ 16 Employer Contribution History.................................................................................................................................................................18 Funding History.......................................................................................................................................................................................... 18 Risk Analysis ................................................................................................................................................................................................ 19 Future Investment Return Scenarios...................................................................................................................................................... 20 Discount Rate Sensitivity.......................................................................................................................................................................... 21 Mortality Rate Sensitivity........................................................................................................................................................................... 21 Maturity Measures ..................................................................................................................................................................................... 22 Maturity Measures History........................................................................................................................................................................23 Funded Status – Termination Basis........................................................................................................................................................ 24 Funded Status – Low-Default-Risk Basis .............................................................................................................................................. 25 Summary of Valuation Data ......................................................................................................................................................................26 List of Class 1 Benefit Provisions ........................................................................................................................................................... 26 Plan's Major Benefit Options ....................................................................................................................................................................27

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 1 Actuarial Certification
It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles as well as the applicable Standards of Practice promulgated by the Actuarial Standards Board. While this report, consisting of Section 1 and Section 2, is intended to be complete, our office is available to answer questions as needed. All of the undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries with regard to pensions.

Actuarial Methods and Assumptions
It is our opinion that the assumptions and methods, as recommended by the Chief Actuary and adopted by the CalPERS Board of Administration, are internally consistent and reasonable for this plan.

Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
Actuarial Data and Rate Plan Results
To the best of my knowledge and having relied upon the attestation above that the actuarial methods and assumptions are reasonable as well as the information in Section 2 of this report, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Miscellaneous Plan of the City of Buellton and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation and related validation work was performed by the CalPERS Actuarial Office. The valuation was based on the member and financial data as of June 30, 2023, provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Buellton, while Section 2 is based on the corresponding information for all agencies participating in the Miscellaneous Risk Pool to which the plan belongs.

David Clement, ASA, MAAA, EA
Senior Actuary, CalPERS

Highlights and Executive Summary
• Introduction 3
• Purpose of Section 1 3
• Summary of Key Valuation Results 4
• Changes Since the Prior Year’s Valuation 5
• Subsequent Events 5

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 3 Introduction
This report presents the results of the June 30, 2023,actuarial valuation of the Miscellaneous Plan of the City of Buellton of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2025-26.

Purpose of Section 1
This Section 1 report for the Miscellaneous Plan of the City of Buellton of CalPERS was prepared by the Actuarial Office using data as of June 30, 2023. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2023; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2025,through June 30, 2026; • Determine the required member contribution rate for FY July 1, 2025,through June 30, 2026, for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2023, to the CalPERS Board of Administration (board) and other interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).

The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact a CalPERS actuary before disseminating any portion of this report for any reason that is not explicitly described above.

Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; changes in plan provisions or applicable law ; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.

Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the guidance of Actuarial Standards of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and

7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10 % lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 4 Summary of Key Valuation Results
Below is a brief summary of key valuation results along with page references where more detailed information can be found .

Required Employer Contributions — page 8
Fiscal Year
2024-25
Fiscal Year
2025-26
Employer Normal Cost Rate 13.31% 13.38%
Unfunded Accrued Liability (UAL) Contribution Amount $46,850 $80,893 Paid either as
Option 1) 12 Monthly Payments of $3,904.17 $6,741.08
Option 2) Annual Prepayment in July $45,334 $78,275
Member Contribution Rates — page 9
Fiscal Year
2024-25
Fiscal Year
2025-26
Member Contribution Rate 7.00% 7.00%
Projected Employer Contributions — page 14
Fiscal
Year
Normal Cost
(% of payroll)
Annual
UAL Payment
2026-27 13.4% $113,000
2027-28 13.4% $145,000
2028-29 13.4% $177,000
2029-30 13.4% $179,000
2030-31 13.4% $179,000
Funded Status — Funding Policy Basis — page 12
June 30, 2022 June 30, 2023
Entry Age Accrued Liability (AL) $11,121,285 $11,366,368 Market Value of Assets (MVA) 7,996,289 9,623,058
Unfunded Accrued Liability (UAL) [AL – MVA] $3,124,996 $1,743,310 Funded Ratio [MVA ÷ AL] 71.9% 84.7%
Summary of Valuation Data — Page 26

June 30, 2022 June 30, 2023
Active Member Count 10 7
Annual Covered Payroll $836,456 $775,104
Transferred Member Count 4 3
Separated Member Count 6 7
Retired Members and Beneficiaries Count 29 32

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 5 Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. For pooled rate plans, voluntary benefit changes by plan amendment are generally included in the first valuation with a valuation date on or after the effective date of the amendment.

Please refer to the Plan’s Major Benefit Options in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.

Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2023,actuarial valuation.

New Disclosure Items
In December 2021, the Actuarial Standards Board issued a revision of Actuarial Standard of Practice No. 4 (ASOP 4) requiring actuaries to disclose a low-default-risk obligation measure (LDROM) of the benefits earned. This information is shown in a new exhibit, Funded Status – Low-Default-Risk Basis.

Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2023,as well as statutory changes, regulatory changes and board actions through January 2024.

During the time period between the valuation date and the publication of this report, inflation has been higher than the expected inflation of 2.3% per annum. Since inflation influences cost-of-living increases for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at least some upward pressure on contribution requirements a nd downward pressure on the funded status in the June 30, 2024, valuation. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists.

The 2023 annual benefit limit under Internal Revenue Code (IRC) section 415(b) and annual compensation limits under IRC section 401(a)(17) and Government Code section 7522.10 were used for this valuation and are assumed to increase 2.3% per year based on the price inflation assumption. The actual 2024 limits, determined in October 2023, are not reflected.

On April 16, 2024, the board took action to modify the Funding Risk Mitigation Policy to remove the automatic change to the discount rate when the investment return exceeds various thresholds. Rather than an automatic change to the discount rate, a board discussion would be placed on the calendar. The 95th percentile return in the Future Investment Return Scenarios exhibit in this report has not been modified and still reflects the projected contribution requirements associated with a reduction in the discount rate.

To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.

Liabilities and Contributions
• Determination of Required Contributions 7
• Required Employer Contributions 8
• Member Contribution Rates 9
• Other Pooled Miscellaneous Risk Pool Rate Plans 10
• Breakdown of Entry Age Accrued Liability 11
• Allocation of Plan’s Share of Pool’s Experience 11
• Development of the Plan’s Share of Pool’s Assets 11
• Funded Status – Funding Policy Basis 12
• Additional Employer Contributions 13
• Projected Employer Contributions 14
• Schedule of Amortization Bases 15
• Amortization Schedule and Alternatives 16
• Employer Contribution History 18
• Funding History 18

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 7 Determination of Required Contributions
Contributions to fund the plan are determined by an actuarial valuation performed each year. The valuation employs complex calculations based on a set of actuarial assumptions and methods. See Appendix A in Section 2 for information on the assumptions and methods used in this valuation. The valuation incorporates all plan experience through the valuation date and sets required contributions for the fiscal year that begins two years after the valuation date.

Contribution Components
Two components comprise required contributions:
• Normal Cost—expressed as a percentage of pensionable payroll • Unfunded Accrued Liability (UAL) Contribution — expressed as a dollar amount Normal Costrepresents the value of benefits allocated to the upcoming year for active employees. If all plan experience exactly matched the actuarial assumptions, normal cost would be sufficient to fully fund all benefits. The employer and employees each pay a share of the normal cost with contributions payable as part of the regular payroll reporting process. The contribution rate for Classic members is set by statute based on benefit formula whereas for PEPRA members it is based on 50% of the total normal cost.

When plan experience differs from the actuarial assumptions, unfunded accrued liability (UAL) emerges. The new UAL may be positive or negative. If the total UAL is positive (i.e., accrued liability exceeds assets), the employer is required to make contributions to pay off the UAL over time. This is called the Unfunded Accrued Liability Contribution component. There is an option to prepay this amount during July of each fiscal year, otherwise it is paid monthly.

In measuring the UAL each year, plan experience is split by source. Common sources of UAL include investment experience different than expected, non-investment experience different than expected, assumption changes and benefit changes. Each source of UAL (positive or negative) forms a base that is amortized, or paid off, over a specified period of time in accordance with the CalPERS Actuarial Amortization Policy. The Unfunded Accrued Liability Contribution is the sum of the payments on all bases. See the Schedule of Amortization Bases section of this report for an inventory of existing bases and Appendix A in Section 2 for more information on the amortization policy.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 8 Required Employer Contributions
The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year
Required Employer Contributions 2025-26
Employer Normal Cost Rate 13.38%
Plus
Unfunded Accrued Liability (UAL) Contribution Amount1 $80,893 Paid either as
1) Monthly Payment $6,741.08
Or
2) Annual Prepayment Option* $78,275
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) and the Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For Member Contribution Rates see the following page.

Fiscal Year Fiscal Year
Development of Normal Cost as a Percentage of Payroll 2024-25 2025-26 Base Total Normal Cost for Formula 18.81% 18.87%
Surcharge for Class 1 Benefits 2
a) FAC 1 0.64% 0.64%
b) PRSA 0.79% 0.80%
Plan’s Total Normal Cost 20.24% 20.31%
Offset Due to Employee Contributions 3 6.93% 6.93%
Employer Normal Cost 13.31% 13.38%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 30, 2024.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 This is the expected employee contributions, taking into account individual benefit formula and any offset from the use of a modified formula, divided by projected annual payroll. For member contribution rates above the breakpoint for each benefit formula, see Member Contribution Rates.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 9 Member Contribution Rates
The required member contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Each member contributes toward their retirement based upon the retirement formula. The standard Classic member contribution rate above the breakpoint, if any, is as described below.

Benefit Formula
Percent Contributed
above the Breakpoint
Miscellaneous, 1.5% at age 65 2%
Miscellaneous, 2% at age 60 7%
Miscellaneous, 2% at age 55 7%
Miscellaneous, 2.5% at age 55 8%
Miscellaneous, 2.7% at age 55 8%
Miscellaneous, 3% at age 60 8%
Auxiliary organizations of the CSU system may elect reduced contribution rates for Miscellaneous members, in which case the contribution rate above the breakpoint is 6% if members are not covered by Social Security and 5% if they are.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 10 Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 1722. In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Miscellaneous Risk Pool are shown below and assume that the total employer payroll within the Miscellaneous Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.

Fiscal Year Fiscal Year
Estimated Employer Contributions for all Pooled Miscellaneous Rate Plans 2024-25 2025-26 Projected Payroll for the Contribution Year $1,942,791 $2,029,986 Estimated Employer Normal Cost $197,195 $202,629
Required Payment on Amortization Bases $49,844 $87,592
Estimated Total Employer Contributions $247,039 $290,221 Estimated Total Employer Contribution Rate (illustrative only) 12.72% 14.30%

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 11 Breakdown of Entry Age Accrued Liability
Active Members $2,605,551
Transferred Members 225,912
Separated Members 544,488
Members and Beneficiaries Receiving Payments 7,990,417
Total $11,366,368
Allocation of Plan’s Share of Pool’s Experience
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assum ption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $11,366,368

2. Projected UAL Balance at 6/30/2023 1,509,418

3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0

4. Adjusted UAL Balance at 6/30/2023 for Asset Share 2,121,437

5. Pool’s Accrued Liability1 23,349,910,053

6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20231 5,227,602,209

7. Pool’s 2022-23 Investment (Gain)/Loss1 114,855,623

8. Pool’s 2022-23 Non-Investment (Gain)/Loss1 360,116,330

9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 58,593

10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 175,299

11. Plan’s New (Gain)/Loss as of 6/30/2023:(9) + (10) 233,892

12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0

13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0

14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0

15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0

16. Offset due to Funding Risk Mitigation 0

17. Plan’s Investment (Gain)/Loss: (9) – (16) 58,593
1 Does not include plans that transferred to the pool on the valuation date.

Development of the Plan’s Share of Pool’s Assets

18. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $1,743,310

19. Plan’s Share of Pool’s Market Value of Assets (MVA): (1) - (18) $9,623,058 For a reconciliation of the pool’s Market Value of Assets (MVA), information on the fund’s asset allocation and a history of CalPERS investment returns, see Section 2, which can be found on the CalPERS website (www.calpers.ca.gov).

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 12 Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expecte d cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s fundin g target on the valuation date.

The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.

A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.

Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual a verage future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to fully fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:

The Risk Analysis section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.

June 30, 2022 June 30, 2023

1. Present Value of Benefits $12,412,835 $12,487,255

2. Entry Age Accrued Liability 11,121,285 11,366,368

3. Market Value of Assets (MVA) 7,996,289 9,623,058

4. Unfunded Accrued Liability (UAL) [(2) – (3)] $3,124,996 $1,743,310

5. Funded Ratio [(3) ÷ (2)] 71.9% 84.7%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%

1. Entry Age Accrued Liability $12,663,432 $11,366,368 $10,276,097

2. Market Value of Assets (MVA) 9,623,058 9,623,058 9,623,058

3. Unfunded Accrued Liability (UAL) [(1) – (2)] $3,040,374 $1,743,310 $653,039

4. Funded Ratio [(2) ÷ (1)] 76.0% 84.7% 93.6%

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 13 Additional Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2025-26 is $80,893. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time. These optional payments serve to reduce the UAL and future required contributions and can result in significant long -term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Provided below are select ADP options for consideration. Making such an ADP during FY 2025-26 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see Amortization Schedule and Alternatives . Agencies considering making an ADP should contact CalPERS for additional information.

Fiscal Year 2025-26 Employer Contributions — Illustrative Scenarios Funding Approach Estimated
Normal Cost
Minimum UAL
Contribution ADP1 Total UAL Contribution
Estimated Total
Contribution
Minimum required only $90,987 $80,893 0 $80,893 $171,880 20 year funding horizon $90,987 $80,893 $77,577 $158,470 $249,457 15 year funding horizon $90,987 $80,893 $103,976 $184,869 $275,856 10 year funding horizon $90,987 $80,893 $159,657 $240,550 $331,537 5 year funding horizon $90,987 $80,893 $332,777 $413,670 $504,657 The minimum required contribution above is less than interest on the UAL. With no ADP the UAL is projected to increase over the following year. If the minimum UAL payment were split between interest and principal, the principal portion would be negative. This situation is referred to as negative amortization. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2027-28, as shown in the Amortization Schedule and Alternatives section of the report (see columns labeled Current Amortization Schedule).

Fiscal Year 2025-26 Employer Contribution Necessary to Avoid Negative Amortization Estimated
Normal Cost
Minimum UAL
Contribution
ADP1 Total UAL
Contribution
Estimated Total
Contribution
$90,987 $80,893 $35,064 $115,957 $206,944
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year w ould have to be less or more than the amount show n to have the same effect on the UAL amortization.

The calculations above are based on the projected UAL as of June 30, 2025,as determined in the June 30, 2023, actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions, and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of year s will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one ye ar to the next and can diverge significantly from projections over a period of several years.

Additional Discretionary Payment History
The following table provides a recent history of actual ADPs made to the plan.

Fiscal
Year ADP FiscalYear ADP
2019-20 $48,183 2022-23 $1,556,792
2020-21 $0 2023-242 $175,000
2021-22 $6,083
2 Excludes payments made after April 30, 2024

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 14 Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2023-24 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2023-24 and Beyond) Fiscal Year 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Rate Plan 1722 Results
Normal Cost % 13.38% 13.4% 13.4% 13.4% 13.4% 13.4%
UAL Payment $80,893 $113,000 $145,000 $177,000 $179,000 $179,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see Amortization of Unfunded Actuarial Accrued Liability in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.

The required contribution for FY 2025-26 is less than interest on the UAL, a situation referred to as negative amortization, as explained in the Additional Employer Contributions section earlier in this report. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2027-28, as shown in the Amortization Schedule and Alternatives section of the report (see columns labelled “Current Amortization Schedule”).

For projected contributions under alternate investment return scenarios, please see the Future Investment Return Scenarios exhibit. Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website.

Pension Outlook can help plan and budget pension costs under various scenarios.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 15 Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities and funded status of the plan are measured as of the valuation date: June 30, 2023. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuati on date: FY 2025-26.

This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.

The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected paymen t on the UAL for the fiscal year and adjusting for interest. The expected payment on the UAL for FY 2023-24 is based on the actuarial valuation two years ago, adjusted for additional discretionary payments made on or before April 30, 2024, if necessary, and the expected payment for FY 2024-25 is based on the actuarial valuation one year ago.

Reason for Base
Date
Est.

Ramp
Level
2025-26
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Minimum
Required
Payment
2025-26
Investment (Gain)/Loss 6/30/22 40% Up Only 0.00% 19 1,342,493 3,643 1,430,018 30,738 1,495,493 61,476 Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 1 166,925 172,507 0 0 0 0 Investment (Gain)/Loss 6/30/23 20% Up Only 0.00% 20 58,593 0 62,577 0 66,832 1,437 Non-Investment (Gain)/Loss 6/30/23 No Ramp 0.00% 20 175,299 0 187,219 0 199,950 17,980 Total 1,743,310 176,150 1,679,814 30,738 1,762,275 80,893 The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in Allocation of Plan’s Share of Pool’s Experience earlier in this report. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 16 Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded lia bility payments.

Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a fresh start, please contact a CalPERS actuary.

The current amortization schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existin g unfunded liability bases with a single “fresh start” base and amortizing it over an appropriate period.

The current amortization schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario ari se in any future year, the actuary will take appropriate action based on guidelines in the CalPERS Actuarial Amortization Policy.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 17 Amortization Schedule and Alternatives (continued)
Alternative Schedules
Current Amortization
Schedule 20 Year Amortization 15 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2025 1,762,275 80,893 1,762,275 158,470 1,762,275 184,869 6/30/2026 1,798,512 113,066 1,718,340 158,470 1,691,059 184,869 6/30/2027 1,803,964 145,241 1,671,418 158,470 1,615,000 184,869 6/30/2028 1,776,535 177,415 1,621,305 158,470 1,533,769 184,869 6/30/2029 1,713,991 178,852 1,567,784 158,470 1,447,014 184,869 6/30/2030 1,645,710 178,852 1,510,624 158,470 1,354,360 184,869 6/30/2031 1,572,786 178,852 1,449,577 158,470 1,255,405 184,869 6/30/2032 1,494,903 178,852 1,384,379 158,470 1,149,721 184,869 6/30/2033 1,411,724 178,852 1,314,747 158,470 1,036,851 184,869 6/30/2034 1,322,889 178,853 1,240,380 158,470 916,306 184,870 6/30/2035 1,228,012 178,853 1,160,956 158,470 787,563 184,870 6/30/2036 1,126,683 178,852 1,076,132 158,470 650,065 184,869 6/30/2037 1,018,464 178,852 985,540 158,470 503,218 184,870 6/30/2038 902,887 178,852 888,787 158,470 346,385 184,870 6/30/2039 779,450 178,851 785,455 158,470 178,887 184,869 6/30/2040 647,621 178,853 675,097 158,470
6/30/2041 506,825 178,852 557,234 158,470
6/30/2042 356,456 178,852 431,357 158,470
6/30/2043 195,862 178,851 296,920 158,470
6/30/2044 24,349 25,163 153,341 158,469
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 3,224,559 3,169,399 2,773,039
Interest Paid 1,462,284 1,407,124 1,010,764
Estimated Savings 55,160 451,520

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 18 Employer Contribution History
The table below provides a recent history of the employer contribution requirements for the plan, as determined by the annual actuarial valuation.Changes due to prepayments or plan amendments after the valuation report was finalized are not reflected. [
Valuation
Date
Contribution
Year
Employer
Normal Cost Rate
Unfunded Liability
Payment
06/30/2014 2016 - 17 9.558% $81,228
06/30/2015 2017 - 18 9.599% 98,534
06/30/2016 2018 - 19 10.152% 124,305
06/30/2017 2019 - 20 10.868% 151,875
06/30/2018 2020 - 21 11.746% 155,509
06/30/2019 2021 - 22 11.60% 182,863
06/30/2020 2022 - 23 11.61% 211,690
06/30/2021 2023 - 24 13.26% 198,158
06/30/2022 2024 - 25 13.31% 46,850
06/30/2023 2025 - 26 13.38% 80,893
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2014 $7,304,613 $6,119,235 $1,185,378 83.8% $1,170,181 06/30/2015 7,682,992 6,154,736 1,528,256 80.1% 1,065,365 06/30/2016 8,071,132 5,998,676 2,072,456 74.3% 1,037,683 06/30/2017 8,616,660 6,566,461 2,050,199 76.2% 1,066,104 06/30/2018 9,330,830 6,944,991 2,385,839 74.4% 967,350
06/30/2019 9,743,032 7,275,840 2,467,192 74.7% 691,491
06/30/2020 10,117,235 7,470,097 2,647,138 73.8% 850,151 06/30/2021 10,566,496 8,792,647 1,773,849 83.2% 801,866 06/30/2022 11,121,285 7,996,289 3,124,996 71.9% 836,456 06/30/2023 11,366,368 9,623,058 1,743,310 84.7% 775,104

Risk Analysis
• Future Investment Return Scenarios 20
• Discount Rate Sensitivity 21
• Mortality Rate Sensitivity 21
• Maturity Measures 22
• Maturity Measures History 23
• Funded Status – Termination Basis 24
• Funded Status – Low-Default-Risk Basis 25

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 20 Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below refle ct the impact of the CalPERS Funding Risk Mitigation Policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.

The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alter nate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2043.

Assumed Annual Return
FY 2023-24
through FY 2042-43
Projected Employer Contributions
2026-27 2027-28 2028-29 2029-30 2030-31

3.0% (5th percentile)
Discount Rate 6.80% 6.80% 6.80% 6.80% 6.80%
Normal Cost Rate 13.4% 13.4% 13.4% 13.4% 13.4%
UAL Contribution $122,000 $172,000 $232,000 $270,000 $317,000

10.8% (95th percentile)
Discount Rate 6.75% 6.70% 6.65% 6.60% 6.55%
Normal Cost Rate 13.6% 13.9% 14.2% 14.4% 14.7%
UAL Contribution $105,000 $122,000 $128,000 $0 $0
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.

The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.

The following table shows the effect of one and two standard deviation investment losses in FY 2023-24 on the FY 2026-27 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2026-27.

Assumed Annual Return for
Fiscal Year 2023-24
Required
Employer
Contributions
Projected
Employer
Contributions
2025-26 2026-27
(17.2%) (2 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 13.38% 13.4%
UAL Contribution $80,893 $169,000
(5.2%) (1 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 13.38% 13.4%
UAL Contribution $80,893 $141,000
• Without investment gains (returns higher than 6.8%) in FY 2024-25 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2023-24.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2026-27 as well as to model other investment return scenarios .

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 21 Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of

6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2023
1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 25.56% 20.31% 16.31%
b) Accrued Liability $12,663,432 $11,366,368 $10,276,097 c) Market Value of Assets $9,623,058 $9,623,058 $9,623,058 d) Unfunded Liability/(Surplus) [(b) - (c)] $3,040,374 $1,743,310 $653,039 e) Funded Ratio 76.0% 84.7% 93.6%
Sensitivity to the Price Inflation Assumption
As of June 30, 2023
1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 21.29% 20.31% 18.54%
b) Accrued Liability $11,740,036 $11,366,368 $10,569,744 c) Market Value of Assets $9,623,058 $9,623,058 $9,623,058 d) Unfunded Liability/(Surplus) [(b) - (c)] $2,116,978 $1,743,310 $946,686 e) Funded Ratio 82.0% 84.7% 91.0%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023,plan costs and funded status under two different longevity scenarios, namely assuming rates of post-retirement mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.

As of June 30, 2023
10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 20.66% 20.31% 19.99%
b) Accrued Liability $11,637,645 $11,366,368 $11,118,456 c) Market Value of Assets $9,623,058 $9,623,058 $9,623,058 d) Unfunded Liability/(Surplus) [(b) - (c)] $2,014,587 $1,743,310 $1,495,398 e) Funded Ratio 82.7% 84.7% 86.6%

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 22 Maturity Measures
As pension plans mature they become more sensitive to risks .Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions.

Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only. One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a ve ry low ratio of retiree liability to total liability. As the plan matures, the ratio increases. A mature plan will often have a ratio above 60%-65%.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2022 June 30, 2023

1. Retiree Accrued Liability $7,662,827 $7,990,417

2. Total Accrued Liability $11,121,285 $11,366,368

3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 69% 70%
Another measure of the maturity level of CalPERS and its plans is the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.

For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2022, was 0.77 and was calculated consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plan s, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.

Support Ratio June 30, 2022 June 30, 2023

1. Number of Actives 10 7

2. Number of Retirees 29 32

3. Support Ratio [(1) ÷ (2)] 0.34 0.22

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 23 Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary increases, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the u ps and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll. Plans that have a higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an AVR of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as a plan matures.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll. Pl ans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in li ability. For example, a plan with an LVR of 8 is expected to have twice the contribution volatility of a plan with an LVR of 4 when there is a change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.

Contribution Volatility June 30, 2022 June 30, 2023

1. Market Value of Assets $7,996,289 $9,623,058

2. Payroll $836,456 $775,104

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 9.6 12.4

4. Accrued Liability $11,121,285 $11,366,368

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 13.3 14.7 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 47% 0.79 6.2 8.1
06/30/2018 46% 0.70 7.2 9.6
06/30/2019 62% 0.48 10.5 14.1
06/30/2020 74% 0.39 8.8 11.9
06/30/2021 70% 0.36 11.0 13.2
06/30/2022 69% 0.34 9.6 13.3
06/30/2023 70% 0.22 12.4 14.7

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 24 Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The accrued liability on a termination basis (termination liability) is calculated differently from the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.

A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool.

The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while limiting the funding risk.

However, this asset allocation has a lower expected rate of return than the remainder of the PERF and consequently, a lower discount rate assumption. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The discount rate used for actual termination valuations is a weighted average of the 10-year and 30-year Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the fo llowing analysis is based on 20-year Treasury bonds, which is a good proxy for most plans. The discount rate upon contract termination will depend on actual Treasury rates on the date of termination, which varies over time, as shown below.

Valuation 20-Year Valuation 20-Year
Date Treasury Rate Date Treasury Rate
06/30/2014 3.08% 06/30/2019 2.31%
06/30/2015 2.83% 06/30/2020 1.18%
06/30/2016 1.86% 06/30/2021 2.00%
06/30/2017 2.61% 06/30/2022 3.38%
06/30/2018 2.91% 06/30/2023 4.06%
As Treasury rates are variable, the table below shows a range for the termination liability using discount rates 1% below and above the 20-year Treasury rate on the valuation date. The price inflation assumption is the 20-year Treasury breakeven inflation rate, that is, the difference between the 20-year inflation indexed bond and the 20-year fixed-rate bond.

The Market Value of Assets (MVA) also varies with interest rates and will fluctuate depending on other market conditions on the date of termination. Since it is not possible to approximate how the MVA will change in different interest rate environments, the results below use the MVA as of the valuation date.

Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $18,225,428 $14,139,380

2. Market Value of Assets (MVA) 9,623,058 9,623,058

3. Unfunded Termination Liability [(1) – (2)] $8,602,370 $4,516,322

4. Funded Ratio [(2) ÷ (1)] 52.8% 68.1%
1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report.

In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow a CalPERS actuary to provide a preliminary termination valuation with a more up -to-date estimate of the plan’s assets and liabilities. Before beginning this process, please consult with a CalPERS actuary.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 25 Funded Status – Low-Default-Risk Basis
Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, requires the disclosure of a low-default-risk obligation measure (LDROM) of benefit costs accrued as of the valuation date using a discount rate based on the yields of high quality fixed income securities with cash flows that replica te expected benefit payments. Conceptually, this measure represents the level at which financial markets would value the accrued plan costs, and would be approximately equal to the cost of a portfolio of low-default-risk bonds with similar financial characteristics to accrued plan costs.

As permitted in ASOP No. 4, the Actuarial Office uses the Entry Age Actuarial Cost Method to calculate the LDROM. This methodology is in line with the measure of “benefit entitlements” calculated by the Bureau of Economic Analysis and used by the Federal Reserve to report the indebtedness due to pensions of plan sponsors and, conversely, the household wealth due to pensions of plan members.

As shown below, the discount rate used for the LDROM is 4.82%, which is the Standard FTSE Pension Liability Index1 discount rate as of June 30, 2023, net of assumed administrative expenses.

Selected Measures on a Low-Default-Risk Basis June 30, 2023 Discount Rate 4.82%

1. Accrued Liability2 – Low-Default-Risk Basis (LDROM)
a) Active Members $3,499,958
b) Transferred Members 317,439
c) Separated Members 819,872
d) Members and Beneficiaries Receiving Payments 9,549,257 e) Total $14,186,526

2. Market Value of Assets (MVA) 9,623,058

3. Unfunded Accrued Liability – Low-Default-Risk Basis [(1e) – (2)] $4,563,468

4. Unfunded Accrued Liability – Funding Policy Basis 1,743,310

5. Present Value of Unearned Investment Risk Premium [(3) – (4)] $2,820,158 The difference between the unfunded liabilities on a low-default-risk basis and on the funding policy basis represents the present value of the investment risk premium that must be earned in future years to keep future contributions for currently accrued p lan costs at the levels anticipated by the funding policy.

Benefit security for members of the plan relies on a combination of the assets in the plan, the investment income generated from those assets, and the ability of the plan sponsor to make necessary future contributions. If future returns fall short of 6.8%, benefit security could be at risk without higher than currently anticipated future contributions.

The funded status on a low-default-risk basis is not appropriate for assessing the sufficiency of plan assets to cover the cost of settling the plan’s benefit obligations (see Funded Status – Termination Basis), nor is it appropriate for assessing the need for future contributions (see Funded Status – Funding Policy Basis). 1 This index is based on a yield curve of hypothetical AA-rated zero coupon corporate bonds whose maturities range from 6 months to 30 years. The index represents the single discount rate that w ould produce the same present value as discounting a standardized set of liability cash flow s for a fully open pension plan using the yield curve. The liability cash flows are reasonably consistent with the pattern of benefits expected to be paid from the entire Public Employees’ Retirement Fund for current and former plan members. A different index, hence a different discount rate, may be needed to measure the LDROM for a subset of the fund, such as a single rate plan or a group of retirees. 2 If plan assets w ere invested entirely in the AA fixed income securities used to determine the discount rate of 4.82%, the CalPERS discount rate could, at various times, be below 4.5% or 5.25%, and some automatic annual retiree COLAs could be suspended (Gov. Code sections 21329 and 21335). Since there is currently no proposal to adopt an asset allocation entirely comprised of fixed income securities, the automatic COLAs have been fully valued in the measures above based on the assumptions used for plan funding. Removing future COLAs from the measurement w ould understate the statutory obligation.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 26 Summary of Valuation Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2022 June 30, 2023
Active Members
Counts 10 7
Average Attained Age 55.1 53.8
Average Entry Age to Rate Plan 42.7 41.4
Average Years of Credited Service 12.5 12.5
Average Annual Covered Pay $83,646 $110,729
Annual Covered Payroll $836,456 $775,104
PresentValue of Future Payroll $5,878,954 $4,925,553
Transferred Members 4 3
Separated Members 6 7
Retired Members and Beneficiaries*
Counts 29 32
Average Annual Benefits $22,960 $22,053
Total Annual Benefits $665,839 $705,682
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. * Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the following Class 1 Benefit Provisions:
• One Year Final Compensation (FAC 1)
• Post-Retirement Survivor Allowance (PRSA)

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304

Plan's Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.

Benefit Group
Member Category Misc Misc
Demographics
Actives Yes No
Transfers/Separated Yes No
Receiving Yes Yes
Benefit Group Key 106595 112803
Benefit Provision
Benefit Formula 2% @ 55
Social Security Coverage No
Full/Modified Full
Employee Contribution Rate 7.00%
Final Average Compensation Period One Year
Sick Leave Credit Yes
Non-Industrial Disability Improved
Industrial Disability No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special No
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $2,000 $2,000
Survivor Allowance (PRSA) Yes Yes
COLA 2% 2%

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 28 Section 2
California Public Employees’ Retirement System
Risk Pool Actuarial Valuation Information
Section 2 may be found on the
CalPERS website (www.calpers.ca.gov)
in the Forms & Publications section

California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2024
PEPRA Miscellaneous Plan of the City of Buellton (CalPERS ID: 7472860304) Annual Valuation Report as of June 30, 2023
Dear Employer,
Attached to this letter is Section 1 of the June 30, 2023 actuarial valuation report for the rate plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2025-26. In addition, the report contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2023.

Section 2 can be found on the CalPERS website (www.calpers.ca.gov). From the home page, go to “Forms & Publications” and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Miscellaneous Risk Pool Actuarial Valuation Report for June 30, 2023.

Required Contributions
The table below shows the minimum required employer contributions and the PEPRA member contribution rate for FY 2025-26 along with an estimate of the employer contribution requirements for FY 2026-27. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
PEPRA Member
Contribution Rate
2025-26 8.27% $6,699 8.25%
Projected Results
2026-27 8.3% $8,500 TBD
The actual investment return for FY 2023-24 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2023-24 differs from 6.8%, the actual contribution requirements for FY 2026-27 will differ from those shown above. For additional details regarding the assumptions and methods used for these projections, please refer to Projected Employer Contributions. This section also contains projected required contributions through FY2030-31.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304

Report Enhancements
A number of enhancements were made to the report this year to ease navigation and allow the reader to find specific information more quickly. The tables of contents are now “clickable.” This is true for the main table of contents that fo llows the title page and the intermediate tables of contents at the beginning of sections. The Adobe navigation pane on the left can also be used to skip to specific exhibits.

There are a number of links throughout the document in blue text. Links that are internal to the document are not underlined, while underlined links will take you to the CalPERS website. Examples are shown below.

Internal Bookmarks CalPERS Website Links
Required Employer Contributions Required Employer Contribution Search Tool Member Contribution Rates Public Agency PEPRA Member Contribution Rates Summary of Key Valuation Results Pension Outlook Overview Funded Status – Funding Policy Basis Interactive Summary of Public Agency Valuation Results Projected Employer Contributions Public Agency Actuarial Valuation Reports Further descriptions of general changes are included in the Highlights and Executive Summarysection and in Appendix A - Actuarial Methods and Assumptions in Section 2.

Questions
A CalPERS actuary is available to answer questions about this report. Other questions may be directed to the Customer Contact Center at 888 CalPERS (or 888-225-7377).

Sincerely,
David Clement, ASA, MAAA, EA
Senior Actuary, CalPERS
Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS

California Public Employees’ Retirement System
Actuarial Valuation for the
PEPRA Miscellaneous Plan
of the City of Buellton
as of June 30, 2023
(CalPERS ID: 7472860304)
(Rate Plan ID: 26369)
Required Contributions for Fiscal Year
July 1, 2025 — June 30, 2026

Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information

Section 1
California Public Employees’ Retirement System
Plan Specific Information
for the
PEPRA Miscellaneous Plan
of the
City of Buellton
(CalPERS ID: 7472860304)
(Rate Plan ID: 26369)

Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents — Section 1
Actuarial Certification....................................................................................................................................................................................1 Highlights and Executive Summary ..........................................................................................................................................................2 Introduction....................................................................................................................................................................................................3 Purpose of Section 1....................................................................................................................................................................................3 Summary of Key Valuation Results ...........................................................................................................................................................4 Changes Since the Prior Year’s Valuation................................................................................................................................................5 Subsequent Events.......................................................................................................................................................................................5 Liabilities and Contributions .......................................................................................................................................................................6 Determination of Required Contributions..................................................................................................................................................7 Required Employer Contributions ..............................................................................................................................................................8 Member Contribution Rates ........................................................................................................................................................................9 Other Pooled Miscellaneous Risk Pool Rate Plans.............................................................................................................................. 10 Breakdown of Entry Age Accrued Liability............................................................................................................................................. 11 Allocation of Plan’s Share of Pool’s Experience...................................................................................................................................11 Development of the Plan’s Share of Pool’s Assets .............................................................................................................................. 11 Funded Status – Funding Policy Basis................................................................................................................................................... 12 Additional Employer Contributions.......................................................................................................................................................... 13 Projected Employer Contributions........................................................................................................................................................... 14 Schedule of Amortization Bases.............................................................................................................................................................. 15 Amortization Schedule and Alternatives ................................................................................................................................................ 16 Employer Contribution History.................................................................................................................................................................18 Funding History.......................................................................................................................................................................................... 18 Risk Analysis ................................................................................................................................................................................................ 19 Future Investment Return Scenarios...................................................................................................................................................... 20 Discount Rate Sensitivity.......................................................................................................................................................................... 21 Mortality Rate Sensitivity........................................................................................................................................................................... 21 Maturity Measures ..................................................................................................................................................................................... 22 Maturity Measures History........................................................................................................................................................................23 Funded Status – Termination Basis........................................................................................................................................................ 24 Funded Status – Low-Default-Risk Basis .............................................................................................................................................. 25 Summary of Valuation Data ......................................................................................................................................................................26 List of Class 1 Benefit Provisions ........................................................................................................................................................... 26 Plan's Major Benefit Options ....................................................................................................................................................................27

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 1 Actuarial Certification
It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles as well as the applicable Standards of Practice promulgated by the Actuarial Standards Board. While this report, consisting of Section 1 and Section 2, is intended to be complete, our office is available to answer questions as needed. All of the undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries with regard to pensions.

Actuarial Methods and Assumptions
It is our opinion that the assumptions and methods, as recommended by the Chief Actuary and adopted by the CalPERS Board of Administration, are internally consistent and reasonable for this plan.

Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
Actuarial Data and Rate Plan Results
To the best of my knowledge and having relied upon the attestation above that the actuarial methods and assumptions are reasonable as well as the information in Section 2 of this report, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the PEPRA Miscellaneous Plan of the City of Buellton and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation and related validation work wa s performed by the CalPERS Actuarial Office. The valuation was based on the member and financial data as of June 30, 2023, provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced.Section 1 of this report is based on the member and financial data for City of Buellton, while Section 2 is based on the corresponding information for all agencies participating in the Miscellaneous Risk Pool to which the plan belongs.

David Clement, ASA, MAAA, EA
Senior Actuary, CalPERS

Highlights and Executive Summary
• Introduction 3
• Purpose of Section 1 3
• Summary of Key Valuation Results 4
• Changes Since the Prior Year’s Valuation 5
• Subsequent Events 5

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 3 Introduction
This report presents the results of the June 30, 2023,actuarial valuation of the PEPRA Miscellaneous Plan of the City of Buellton of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2025-26.

Purpose of Section 1
This Section 1 report for the PEPRA Miscellaneous Plan of the City of Buellton of CalPERS was prepared by the Actuarial Office using data as of June 30, 2023. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2023; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2025,through June 30, 2026; • Determine the required member contribution rate for FY July 1, 2025,through June 30, 2026, for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2023, to the CalPERS Board of Administration (board) and other interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).

The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact a CalPERS actuary before disseminating any portion of this report for any reason that is not explicitly described above.

Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; changes in plan provisions or applicable law ; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.

Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the guidance of Actuarial Standards of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and

7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10 % lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 4 Summary of Key Valuation Results
Below is a brief summary of key valuation results along with page references where more detailed information can be found .

Required Employer Contributions — page 8
Fiscal Year
2024-25
Fiscal Year
2025-26
Employer Normal Cost Rate 8.18% 8.27%
Unfunded Accrued Liability (UAL) Contribution Amount $2,994 $6,699 Paid either as
Option 1) 12 Monthly Payments of $249.50 $558.25
Option 2) Annual Prepayment in July $2,897 $6,482
Member Contribution Rates — page 9
Fiscal Year
2024-25
Fiscal Year
2025-26
Member Contribution Rate 8.25% 8.25%
Projected Employer Contributions — page 14
Fiscal
Year
Normal Cost
(% of payroll)
Annual
UAL Payment
2026-27 8.3% $8,500
2027-28 8.3% $10,000
2028-29 8.3% $12,000
2029-30 8.3% $12,000
2030-31 8.3% $12,000
Funded Status — Funding Policy Basis — page 12
June 30, 2022 June 30, 2023
Entry Age Accrued Liability (AL) $934,332 $1,192,001
Market Value of Assets (MVA) 832,204 1,080,848
Unfunded Accrued Liability (UAL) [AL – MVA] $102,128 $111,153 Funded Ratio [MVA ÷ AL] 89.1% 90.7%
Summary of Valuation Data — Page 26

June 30, 2022 June 30, 2023
Active Member Count 12 15
Annual Covered Payroll $951,870 $1,093,485
Transferred Member Count 1 1
Separated Member Count 3 3
Retired Members and Beneficiaries Count 0 0

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 5 Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. For pooled rate plans, voluntary benefit changes by plan amendment are generally included in the first valuation with a valuation date on or after the effective date of the amendment.

Please refer to the Plan’s Major Benefit Options in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.

Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2023,actuarial valuation.

New Disclosure Items
In December 2021, the Actuarial Standards Board issued a revision of Actuarial Standard of Practice No. 4 (ASOP 4) requiring actuaries to disclose a low-default-risk obligation measure (LDROM) of the benefits earned. This information is shown in a new exhibit, Funded Status – Low-Default-Risk Basis.

Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2023,as well as statutory changes, regulatory changes and board actions through January 2024.

During the time period between the valuation date and the publication of this report, inflation has been higher than the expected inflation of 2.3% per annum. Since inflation influences cost-of-living increases for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at least some upward pressure on contribution requirements a nd downward pressure on the funded status in the June 30, 2024, valuation. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists.

The 2023 annual benefit limit under Internal Revenue Code (IRC) section 415(b) and annual compensation limits under IRC section 401(a)(17) and Government Code section 7522.10 were used for this valuation and are assumed to increase 2.3% per year based on the price inflation assumption. The actual 2024 limits, determined in October 2023, are not reflected.

On April 16, 2024, the board took action to modify the Funding Risk Mitigation Policy to remove the automatic change to the discount rate when the investment return exceeds various thresholds. Rather than an automatic change to the discount rate, a board discussion would be placed on the calendar. The 95th percentile return in the Future Investment Return Scenarios exhibit in this report has not been modified and still reflects the projected contribution requirements associated with a reduction in the discount rate.

To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.

Liabilities and Contributions
• Determination of Required Contributions 7
• Required Employer Contributions 8
• Member Contribution Rates 9
• Other Pooled Miscellaneous Risk Pool Rate Plans 10
• Breakdown of Entry Age Accrued Liability 11
• Allocation of Plan’s Share of Pool’s Experience 11
• Development of the Plan’s Share of Pool’s Assets 11
• Funded Status – Funding Policy Basis 12
• Additional Employer Contributions 13
• Projected Employer Contributions 14
• Schedule of Amortization Bases 15
• Amortization Schedule and Alternatives 16
• Employer Contribution History 18
• Funding History 18

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 7 Determination of Required Contributions
Contributions to fund the plan are determined by an actuarial valuation performed each year. The valuation employs complex calculations based on a set of actuarial assumptions and methods. See Appendix A in Section 2 for information on the assumptions and methods used in this valuation. The valuation incorporates all plan experience through the valuation date and sets required contributions for the fiscal year that begins two years after the valuation date.

Contribution Components
Two components comprise required contributions:
• Normal Cost—expressed as a percentage of pensionable payroll • Unfunded Accrued Liability (UAL) Contribution — expressed as a dollar amount Normal Costrepresents the value of benefits allocated to the upcoming year for active employees. If all plan experience exactly matched the actuarial assumptions, normal cost would be sufficient to fully fund all benefits. The employer and employees each pay a share of the normal cost with contributions payable as part of the regular payroll reporting process. The contribution rate for Classic members is set by statute based on benefit formula whereas for PEPRA members it is based on 50% of the total normal cost.

When plan experience differs from the actuarial assumptions, unfunded accrued liability (UAL) emerges. The new UAL may be positive or negative. If the total UAL is positive (i.e., accrued liability exceeds assets), the employer is required to make contributions to pay off the UAL over time. This is called the Unfunded Accrued Liability Contribution component. There is an option to prepay this amount during July of each fiscal year, otherwise it is paid monthly.

In measuring the UAL each year, plan experience is split by source. Common sources of UAL include investment experience different than expected, non-investment experience different than expected, assumption changes and benefit changes. Each source of UAL (positive or negative) forms a base that is amortized, or paid off, over a specified period of time in accordance with the CalPERS Actuarial Amortization Policy. The Unfunded Accrued Liability Contribution is the sum of the payments on all bases. See the Schedule of Amortization Bases section of this report for an inventory of existing bases and Appendix A in Section 2 for more information on the amortization policy.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 8 Required Employer Contributions
The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year
Required Employer Contributions 2025-26
Employer Normal Cost Rate 8.27%
Plus
Unfunded Accrued Liability (UAL) Contribution Amount1 $6,699 Paid either as
1) Monthly Payment $558.25
Or
2) Annual Prepayment Option* $6,482
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) and the Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For Member Contribution Rates see the following page.

Fiscal Year Fiscal Year
Development of Normal Cost as a Percentage of Payroll 2024-25 2025-26 Base Total Normal Cost for Formula 15.62% 15.71%
Surcharge for Class 1 Benefits 2
a) PRSA 0.81% 0.81%
Plan’s Total Normal Cost 16.43% 16.52%
Offset Due to Employee Contributions 3 8.25% 8.25%
Employer Normal Cost 8.18% 8.27%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 30, 2024.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 This is the expected employee contributions, taking into account individual benefit formula and any offset from the use of a modified formula, divided by projected annual payroll. For member contribution rates above the breakpoint for each benefit formula, see Member Contribution Rates.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 9 Member Contribution Rates
The required member contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

The California Public Employees’ Pension Reform Act of 2013 (PEPRA) established new benefit formulas, final compensation period, and contribution requirements for “new” employees (generally those first hired into a CalPERS-covered position on or after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial contribution rate of at least 50% of the normal cost rate.” The normal cost rate for the plan is dependent on the benefit levels, actuarial assumptions and demographics of the risk pool, particularly members’ entry age. Should the total normal cost rate of the plan change by more than 1% from the base total normal cost rate established for the plan, the new member rate shall be 50% of the new normal cost rate rounded to the nearest quarter percent.

The table below shows the determination of the PEPRA member contribution rates effective July 1, 2025, based on 50% of the total normal cost rate as of the June 30, 2023, valuation.

Basis for Current Rate Rates Effective July 1, 2025
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost Change
Change
Needed
Member
Rate
26369 Miscellaneous PEPRA Level 16.25% 8.25% 16.52% 0.27% No 8.25%

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 10 Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 26369. In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Miscellaneous Risk Pool are shown below and assume that the total employer payroll within the Miscellaneous Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.

Fiscal Year Fiscal Year
Estimated Employer Contributions for all Pooled Miscellaneous Rate Plans 2024-25 2025-26 Projected Payroll for the Contribution Year $1,942,791 $2,029,986 Estimated Employer Normal Cost $197,195 $202,629
Required Payment on Amortization Bases $49,844 $87,592
Estimated Total Employer Contributions $247,039 $290,221 Estimated Total Employer Contribution Rate (illustrative only) 12.72% 14.30%

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 11 Breakdown of Entry Age Accrued Liability
Active Members $1,181,544
Transferred Members 6,967
Separated Members 3,490
Members and Beneficiaries Receiving Payments 0
Total $1,192,001
Allocation of Plan’s Share of Pool’s Experience
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assum ption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $1,192,001

2. Projected UAL Balance at 6/30/2023 85,765

3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0

4. Adjusted UAL Balance at 6/30/2023 for Asset Share 86,832

5. Pool’s Accrued Liability1 23,349,910,053

6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20231 5,227,602,209

7. Pool’s 2022-23 Investment (Gain)/Loss1 114,855,623

8. Pool’s 2022-23 Non-Investment (Gain)/Loss1 360,116,330

9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 7,004

10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 18,384

11. Plan’s New (Gain)/Loss as of 6/30/2023:(9) + (10) 25,388

12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0

13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0

14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0

15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0

16. Offset due to Funding Risk Mitigation 0

17. Plan’s Investment (Gain)/Loss: (9) – (16) 7,004
1 Does not include plans that transferred to the pool on the valuation date.

Development of the Plan’s Share of Pool’s Assets

18. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $111,153

19. Plan’s Share of Pool’s Market Value of Assets (MVA): (1) - (18) $1,080,848 For a reconciliation of the pool’s Market Value of Assets (MVA), information on the fund’s asset allocation and a history of CalPERS investment returns, see Section 2, which can be found on the CalPERS website (www.calpers.ca.gov).

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 12 Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expecte d cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s fundin g target on the valuation date.

The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.

A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.

Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual a verage future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to fully fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:

The Risk Analysis section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.

June 30, 2022 June 30, 2023

1. Present Value of Benefits $2,432,671 $2,918,482

2. Entry Age Accrued Liability 934,332 1,192,001

3. Market Value of Assets (MVA) 832,204 1,080,848

4. Unfunded Accrued Liability (UAL) [(2) – (3)] $102,128 $111,153

5. Funded Ratio [(3) ÷ (2)] 89.1% 90.7%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%

1. Entry Age Accrued Liability $1,463,414 $1,192,001 $981,534

2. Market Value of Assets (MVA) 1,080,848 1,080,848 1,080,848

3. Unfunded Accrued Liability (UAL) [(1) – (2)] $382,566 $111,153 ($99,314)

4. Funded Ratio [(2) ÷ (1)] 73.9% 90.7% 110.1%

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 13 Additional Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2025-26 is $6,699. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time. These optional payments serve to reduce the UAL and future required contributions and can result in significant long -term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Provided below are select ADP options for consideration. Making such an ADP during FY 2025-26 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see Amortization Schedule and Alternatives . Agencies considering making an ADP should contact CalPERS for additional information.

Fiscal Year 2025-26 Employer Contributions — Illustrative Scenarios Funding Approach Estimated
Normal Cost
Minimum UAL
Contribution ADP1 Total UAL Contribution
Estimated Total
Contribution
Minimum required only $111,642 $6,699 0 $6,699 $118,341 20 year funding horizon $111,642 $6,699 $4,424 $11,123 $122,765 15 year funding horizon $111,642 $6,699 $6,276 $12,975 $124,617 10 year funding horizon $111,642 $6,699 $10,184 $16,883 $128,525 5 year funding horizon $111,642 $6,699 $22,335 $29,034 $140,676 The minimum required contribution above is less than interest on the UAL. With no ADP the UAL is projected to increase over the following year. If the minimum UAL payment were split between interest and principal, the principal portion would be negative. This situation is referred to as negative amortization. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2026-27, as shown in the Amortization Schedule and Alternatives section of the report (see columns labeled Current Amortization Schedule).

Fiscal Year 2025-26 Employer Contribution Necessary to Avoid Negative Amortization Estimated
Normal Cost
Minimum UAL
Contribution
ADP1 Total UAL
Contribution
Estimated Total
Contribution
$111,642 $6,699 $1,440 $8,139 $119,781
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year w ould have to be less or more than the amount show n to have the same effect on the UAL amortization.

The calculations above are based on the projected UAL as of June 30, 2025,as determined in the June 30, 2023, actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions, and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of year s will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one ye ar to the next and can diverge significantly from projections over a period of several years.

Additional Discretionary Payment History
The following table provides a recent history of actual ADPs made to the plan.

Fiscal
Year ADP FiscalYear ADP
2019-20 $75 2022-23 $32,217
2020-21 $0 2023-242 $0
2021-22 $42
2 Excludes payments made after April 30, 2024

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 14 Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2023-24 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2023-24 and Beyond) Fiscal Year 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Rate Plan 26369 Results
Normal Cost % 8.27% 8.3% 8.3% 8.3% 8.3% 8.3%
UAL Payment $6,699 $8,500 $10,000 $12,000 $12,000 $12,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see Amortization of Unfunded Actuarial Accrued Liability in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.

The required contribution for FY 2025-26 is less than interest on the UAL, a situation referred to as negative amortization, as explained in the Additional Employer Contributions section earlier in this report. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2026-27, as shown in the Amortization Schedule and Alternatives section of the report (see columns labelled “Current Amortization Schedule”).

For projected contributions under alternate investment return scenarios, please see the Future Investment Return Scenarios exhibit. Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website.

Pension Outlook can help plan and budget pension costs under various scenarios.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 15 Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities and funded status of the plan are measured as of the valuation date: June 30, 2023. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuati on date: FY 2025-26.

This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.

The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected paymen t on the UAL for the fiscal year and adjusting for interest. The expected payment on the UAL for FY 2023-24 is based on the actuarial valuation two years ago, adjusted for additional discretionary payments made on or before April 30, 2024, if necessary, and the expected payment for FY 2024-25 is based on the actuarial valuation one year ago.

Reason for Base
Date
Est.

Ramp
Level
2025-26
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Minimum
Required
Payment
2025-26
Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 19 14,024 0 14,978 1,347 14,604 1,347 Partial Fresh Start 6/30/22 40% Up Only 0.00% 19 71,741 0 76,619 1,647 80,127 3,294 Investment (Gain)/Loss 6/30/23 20% Up Only 0.00% 20 7,004 0 7,480 0 7,989 172 Non-Investment (Gain)/Loss 6/30/23 No Ramp 0.00% 20 18,384 0 19,634 0 20,969 1,886 Total 111,153 0 118,711 2,994 123,689 6,699
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in Allocation of Plan’s Share of Pool’s Experience earlier in this report. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 16 Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded lia bility payments.

Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a fresh start, please contact a CalPERS actuary.

The current amortization schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existin g unfunded liability bases with a single “fresh start” base and amortizing it over an appropriate period.

The current amortization schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario ari se in any future year, the actuary will take appropriate action based on guidelines in the CalPERS Actuarial Amortization Policy.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 17 Amortization Schedule and Alternatives (continued)
Alternative Schedules
Current Amortization
Schedule 20 Year Amortization 15 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2025 123,689 6,699 123,689 11,123 123,689 12,975
6/30/2026 125,177 8,517 120,605 11,123 118,691 12,975
6/30/2027 124,887 10,335 117,311 11,122 113,353 12,976
6/30/2028 122,698 12,153 113,794 11,122 107,651 12,975
6/30/2029 118,482 12,326 110,038 11,123 101,562 12,975
6/30/2030 113,800 12,325 106,026 11,123 95,059 12,975
6/30/2031 108,802 12,326 101,741 11,122 88,114 12,976
6/30/2032 103,462 12,326 97,165 11,122 80,696 12,976
6/30/2033 97,759 12,324 92,278 11,123 72,773 12,975
6/30/2034 91,671 12,326 87,058 11,122 64,313 12,975
6/30/2035 85,167 12,326 81,484 11,123 55,277 12,976
6/30/2036 78,220 12,326 75,530 11,122 45,626 12,975
6/30/2037 70,801 12,325 69,172 11,123 35,320 12,976
6/30/2038 62,877 12,325 62,381 11,122 24,312 12,976
6/30/2039 54,416 12,324 55,129 11,123 12,555 12,975
6/30/2040 45,380 12,325 47,383 11,123
6/30/2041 35,729 12,325 39,110 11,122
6/30/2042 25,422 12,327 30,276 11,123
6/30/2043 14,412 12,325 20,840 11,123
6/30/2044 2,655 2,744 10,762 11,122
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 225,329 222,451 194,631
Interest Paid 101,640 98,762 70,942
Estimated Savings 2,878 30,698

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 18 Employer Contribution History
The table below provides a recent history of the employer contribution requirements for the plan, as determined by the annual actuarial valuation.Changes due to prepayments or plan amendments after the valuation report was finalized are not reflected. [
Valuation
Date
Contribution
Year
Employer
Normal Cost Rate
Unfunded Liability
Payment
06/30/2014 2016 - 17 6.930% $88
06/30/2015 2017 - 18 6.908% 235
06/30/2016 2018 - 19 7.266% 330
06/30/2017 2019 - 20 7.072% 2,189
06/30/2018 2020 - 21 7.874% 803
06/30/2019 2021 - 22 7.73% 1,276
06/30/2020 2022 - 23 7.76% 2,072
06/30/2021 2023 - 24 8.00% 0
06/30/2022 2024 - 25 8.18% 2,994
06/30/2023 2025 - 26 8.27% 6,699
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2014 $353 $369 ($16) 104.5% $38,232
06/30/2015 9,490 8,861 629 93.4% 85,708
06/30/2016 31,102 27,975 3,127 89.9% 275,816
06/30/2017 97,121 94,343 2,778 97.1% 354,090
06/30/2018 199,129 186,841 12,288 93.8% 489,703
06/30/2019 330,191 313,752 16,439 95.0% 526,741
06/30/2020 501,537 469,718 31,819 93.7% 759,692
06/30/2021 718,571 768,002 (49,431) 106.9% 810,031
06/30/2022 934,332 832,204 102,128 89.1% 951,870
06/30/2023 1,192,001 1,080,848 111,153 90.7% 1,093,485

Risk Analysis
• Future Investment Return Scenarios 20
• Discount Rate Sensitivity 21
• Mortality Rate Sensitivity 21
• Maturity Measures 22
• Maturity Measures History 23
• Funded Status – Termination Basis 24
• Funded Status – Low-Default-Risk Basis 25

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 20 Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below refle ct the impact of the CalPERS Funding Risk Mitigation Policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.

The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alter nate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2043.

Assumed Annual Return
FY 2023-24
through FY 2042-43
Projected Employer Contributions
2026-27 2027-28 2028-29 2029-30 2030-31

3.0% (5th percentile)
Discount Rate 6.80% 6.80% 6.80% 6.80% 6.80%
Normal Cost Rate 8.3% 8.3% 8.3% 8.3% 8.3%
UAL Contribution $9,500 $13,000 $18,000 $23,000 $28,000

10.8% (95th percentile)
Discount Rate 6.75% 6.70% 6.65% 6.60% 6.55%
Normal Cost Rate 8.5% 8.7% 8.9% 8.6% 8.8%
UAL Contribution $7,700 $7,700 $0 $0 $0
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.

The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.

The following table shows the effect of one and two standard deviation investment losses in FY 2023-24 on the FY 2026-27 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2026-27.

Assumed Annual Return for
Fiscal Year 2023-24
Required
Employer
Contributions
Projected
Employer
Contributions
2025-26 2026-27
(17.2%) (2 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 8.27% 8.3%
UAL Contribution $6,699 $15,000
(5.2%) (1 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 8.27% 8.3%
UAL Contribution $6,699 $12,000
• Without investment gains (returns higher than 6.8%) in FY 2024-25 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2023-24.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2026-27 as well as to model other investment return scenarios .

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 21 Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of

6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2023
1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 20.67% 16.52% 13.37%
b) Accrued Liability $1,463,414 $1,192,001 $981,534
c) Market Value of Assets $1,080,848 $1,080,848 $1,080,848 d) Unfunded Liability/(Surplus) [(b) - (c)] $382,566 $111,153 ($99,314) e) Funded Ratio 73.9% 90.7% 110.1%
Sensitivity to the Price Inflation Assumption
As of June 30, 2023
1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 17.42% 16.52% 15.02%
b) Accrued Liability $1,251,228 $1,192,001 $1,080,010
c) Market Value of Assets $1,080,848 $1,080,848 $1,080,848 d) Unfunded Liability/(Surplus) [(b) - (c)] $170,380 $111,153 ($838) e) Funded Ratio 86.4% 90.7% 100.1%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023,plan costs and funded status under two different longevity scenarios, namely assuming rates of post-retirement mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.

As of June 30, 2023
10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 16.81% 16.52% 16.25%
b) Accrued Liability $1,215,909 $1,192,001 $1,169,924
c) Market Value of Assets $1,080,848 $1,080,848 $1,080,848 d) Unfunded Liability/(Surplus) [(b) - (c)] $135,061 $111,153 $89,076 e) Funded Ratio 88.9% 90.7% 92.4%

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 22 Maturity Measures
As pension plans mature they become more sensitive to risks .Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions.

Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only. One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a ve ry low ratio of retiree liability to total liability. As the plan matures, the ratio increases. A mature plan will often have a ratio above 60%-65%.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2022 June 30, 2023

1. Retiree Accrued Liability $0 $0

2. Total Accrued Liability $934,332 $1,192,001

3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 0% 0%
Another measure of the maturity level of CalPERS and its plans is the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.

For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2022, was 0.77 and was calculated consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plan s, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.

Support Ratio June 30, 2022 June 30, 2023

1. Number of Actives 12 15

2. Number of Retirees 0 0

3. Support Ratio [(1) ÷ (2)] N/A N/A

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 23 Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary increases, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the u ps and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll. Plans that have a higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an AVR of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as a plan matures.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll. Pl ans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in li ability. For example, a plan with an LVR of 8 is expected to have twice the contribution volatility of a plan with an LVR of 4 when there is a change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.

Contribution Volatility June 30, 2022 June 30, 2023

1. Market Value of Assets $832,204 $1,080,848

2. Payroll $951,870 $1,093,485

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 0.9 1.0

4. Accrued Liability $934,332 $1,192,001

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 1.0 1.1 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0% N/A 0.3 0.3
06/30/2018 0% N/A 0.4 0.4
06/30/2019 0% N/A 0.6 0.6
06/30/2020 0% N/A 0.6 0.7
06/30/2021 0% N/A 0.9 0.9
06/30/2022 0% N/A 0.9 1.0
06/30/2023 0% N/A 1.0 1.1

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 24 Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The accrued liability on a termination basis (termination liability) is calculated differently from the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.

A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool.

The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while limiting the funding risk.

However, this asset allocation has a lower expected rate of return than the remainder of the PERF and consequently, a lower discount rate assumption. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The discount rate used for actual termination valuations is a weighted average of the 10-year and 30-year Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the fo llowing analysis is based on 20-year Treasury bonds, which is a good proxy for most plans. The discount rate upon contract termination will depend on actual Treasury rates on the date of termination, which varies over time, as shown below.

Valuation 20-Year Valuation 20-Year
Date Treasury Rate Date Treasury Rate
06/30/2014 3.08% 06/30/2019 2.31%
06/30/2015 2.83% 06/30/2020 1.18%
06/30/2016 1.86% 06/30/2021 2.00%
06/30/2017 2.61% 06/30/2022 3.38%
06/30/2018 2.91% 06/30/2023 4.06%
As Treasury rates are variable, the table below shows a range for the termination liability using discount rates 1% below and above the 20-year Treasury rate on the valuation date. The price inflation assumption is the 20-year Treasury breakeven inflation rate, that is, the difference between the 20-year inflation indexed bond and the 20-year fixed-rate bond.

The Market Value of Assets (MVA) also varies with interest rates and will fluctuate depending on other market conditions on the date of termination. Since it is not possible to approximate how the MVA will change in different interest rate environments, the results below use the MVA as of the valuation date.

Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $1,890,116 $1,223,385

2. Market Value of Assets (MVA) 1,080,848 1,080,848

3. Unfunded Termination Liability [(1) – (2)] $809,268 $142,537

4. Funded Ratio [(2) ÷ (1)] 57.2% 88.3%
1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report.

In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow a CalPERS actuary to provide a preliminary termination valuation with a more up -to-date estimate of the plan’s assets and liabilities. Before beginning this process, please consult with a CalPERS actuary.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 25 Funded Status – Low-Default-Risk Basis
Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, requires the disclosure of a low-default-risk obligation measure (LDROM) of benefit costs accrued as of the valuation date using a discount rate based on the yields of high quality fixed income securities with cash flows that replica te expected benefit payments. Conceptually, this measure represents the level at which financial markets would value the accrued plan costs, and would be approximately equal to the cost of a portfolio of low-default-risk bonds with similar financial characteristics to accrued plan costs.

As permitted in ASOP No. 4, the Actuarial Office uses the Entry Age Actuarial Cost Method to calculate the LDROM. This methodology is in line with the measure of “benefit entitlements” calculated by the Bureau of Economic Analysis and used by the Federal Reserve to report the indebtedness due to pensions of plan sponsors and, conversely, the household wealth due to pensions of plan members.

As shown below, the discount rate used for the LDROM is 4.82%, which is the Standard FTSE Pension Liability Index1 discount rate as of June 30, 2023, net of assumed administrative expenses.

Selected Measures on a Low-Default-Risk Basis June 30, 2023 Discount Rate 4.82%

1. Accrued Liability2 – Low-Default-Risk Basis (LDROM)
a) Active Members $1,794,591
b) Transferred Members 9,867
c) Separated Members 3,490
d) Members and Beneficiaries Receiving Payments 0
e) Total $1,807,948

2. Market Value of Assets (MVA) 1,080,848

3. Unfunded Accrued Liability – Low-Default-Risk Basis [(1e) – (2)] $727,100

4. Unfunded Accrued Liability – Funding Policy Basis 111,153

5. Present Value of Unearned Investment Risk Premium [(3) – (4)] $615,947 The difference between the unfunded liabilities on a low-default-risk basis and on the funding policy basis represents the present value of the investment risk premium that must be earned in future years to keep future contributions for currently accrued p lan costs at the levels anticipated by the funding policy.

Benefit security for members of the plan relies on a combination of the assets in the plan, the investment income generated from those assets, and the ability of the plan sponsor to make necessary future contributions. If future returns fall short of 6.8%, benefit security could be at risk without higher than currently anticipated future contributions.

The funded status on a low-default-risk basis is not appropriate for assessing the sufficiency of plan assets to cover the cost of settling the plan’s benefit obligations (see Funded Status – Termination Basis), nor is it appropriate for assessing the need for future contributions (see Funded Status – Funding Policy Basis). 1 This index is based on a yield curve of hypothetical AA-rated zero coupon corporate bonds whose maturities range from 6 months to 30 years. The index represents the single discount rate that w ould produce the same present value as discounting a standardized set of liability cash flow s for a fully open pension plan using the yield curve. The liability cash flows are reasonably consistent with the pattern of benefits expected to be paid from the entire Public Employees’ Retirement Fund for current and former plan members. A different index, hence a different discount rate, may be needed to measure the LDROM for a subset of the fund, such as a single rate plan or a group of retirees. 2 If plan assets w ere invested entirely in the AA fixed income securities used to determine the discount rate of 4.82%, the CalPERS discount rate could, at various times, be below 4.5% or 5.25%, and some automatic annual retiree COLAs could be suspended (Gov. Code sections 21329 and 21335). Since there is currently no proposal to adopt an asset allocation entirely comprised of fixed income securities, the automatic COLAs have been fully valued in the measures above based on the assumptions used for plan funding. Removing future COLAs from the measurement w ould understate the statutory obligation.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 26 Summary of Valuation Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2022 June 30, 2023
Active Members
Counts 12 15
Average Attained Age 46.2 44.6
Average Entry Age to Rate Plan 41.6 40.0
Average Years of Credited Service 4.7 4.6
Average Annual Covered Pay $79,323 $72,899
Annual Covered Payroll $951,870 $1,093,485
PresentValue of Future Payroll $9,577,875 $11,127,807
Transferred Members 1 1
Separated Members 3 3
Retired Members and Beneficiaries*
Counts 0 0
Average Annual Benefits $0 $0
Total Annual Benefits $0 $0
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. * Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the following Class 1 Benefit Provisions:
• Post-Retirement Survivor Allowance (PRSA)

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304

Plan's Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.

Benefit Group
Member Category Misc
Demographics
Actives Yes
Transfers/Separated Yes
Receiving No
Benefit Group Key 112802
Benefit Provision
Benefit Formula 2% @ 62
Social Security Coverage No
Full/Modified Full
Employee Contribution Rate 8.25%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Improved
Industrial Disability No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special No
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $2,000
Survivor Allowance (PRSA) Yes
COLA 2%

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Buellton
CalPERS ID: 7472860304
Rate Plan belonging to the Miscellaneous Risk Pool Page 28 Section 2
California Public Employees’ Retirement System
Risk Pool Actuarial Valuation Information
Section 2 may be found on the
CalPERS website (www.calpers.ca.gov)
in the Forms & Publications section

© 2025 GovInvest Inc.

Pension Funding
Buellton, CA
January 23, 2025
© 2025 GovInvest Inc.

Understanding Pension Funding
2 Pension Basics
Changes Since the
Last Valuation and
the Impact of those
Changes
Addressing UAL
© 2025 GovInvest Inc.

Pension Basics
3 © 2025 GovInvest Inc.

Money going into CalPERS is equal to
the Money coming out of CalPERS
Major Driver of
Plan Cost
© 2025 GovInvest Inc.

CalPERS Projects Future Benefit Payments using
a Series of Assumptions
5 Economi
cInflation
Investment Return
Salary Growth
Demographi
c Retirement
Disability
Death
Termination
© 2025 GovInvest Inc.

Buellton has Two Miscellaneous Benefit
Structures
Miscellaneo
us
PEPRA
Miscellaneo
us
Hire Date On or before
7/1/12
On or after
1/1/13
Formula 2% @ 55 2% @ 62
Final Compensation Period 12 months 36 months
COLA 2% per year 2% per year
Employee Contributions 7% of pay

8.25% of pay
(50% of Normal
Cost)
6

© 2025 GovInvest Inc.

As the Workforce shifts toward more PEPRA
members, the Normal Cost will decrease as a Percent
of Pay
7 © 2025 GovInvest Inc.

Changes Since Prior
Valuation
8 © 2025 GovInvest Inc.

CalPERS Investment
Return:

5.8% in 2022/23

9.3% in 2023/24
Weak return in 2022/23 followed by better return in
23/24
9 © 2025 GovInvest Inc.

CalPERS Actual Investment Returns versus
Assumed Investment Return
10 -3.1%

35.4%

24.6%

13.8%

3.9%

15.7%

9.7%

6.5%

12.5%

14.5%

2.0%

16.3%

15.3%

20.1%

19.5%

12.5%

10.5%
-7.2% -6.1%

3.7%

16.6%

12.3%

11.8%

19.1%
-5.1%
-24.0%

13.3%

21.7%

0.1%

13.2%

18.4%

2.4%

0.6%

11.2%

8.6%

6.7%

4.7%

21.3%
-6.1%

5.8%

9.3%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Plan Year Ending June 30
Investment Return Discount Rate 5 per. Mov. Avg. (Investment Return) Dot Com Crash
Great Recession
Discount Rate = Assumed Investment Return Rate
© 2025 GovInvest Inc.

Less Money from Investment Return means
More Money Required from Contributions
11 © 2025 GovInvest Inc.

Higher than Assumed Retiree COLA in 2022
12

© 2025 GovInvest Inc.

What is the Impact of
those Changes?
How did the above change impact Funded Percentage and
Contribution? Now and in the future?
13 © 2025 GovInvest Inc.

Unfunded Accrued Liability
14 © 2025 GovInvest Inc.

Funded Percentage
15 © 2025 GovInvest Inc.

Total Required Employer Contributions
16 © 2025 GovInvest Inc.

Total Required Employer Contributions
17 © 2025 GovInvest Inc.

Additional Discretionary
Payments
18

© 2025 GovInvest Inc.

Unfunded Accrued Liability
19 © 2025 GovInvest Inc.

Funded Percentage
20 © 2025 GovInvest Inc.

Total Required Employer Contributions
21 © 2025 GovInvest Inc.

Addressing Unfunded
Liability
Approaches the City can take to control future Unfunded Liability 22 © 2025 GovInvest Inc.

Why Address Unfunded Liability?
Most of current Required Contribution is due to payment toward Unfunded Actuarial Liability
The City is effectively paying interest to CalPERS for Unfunded Actuarial Liability
Current interest rate is 6.8%
23 © 2025 GovInvest Inc.

Lower Unfunded Actuarial Liability means
Lower Required Contributions
24 Contributions

© 2025 GovInvest Inc.

What is Unfunded Actuarial Liability?
assumptions, new Unfunded Actuarial Liability (UAL) is created.

UAL is also created when assumptions are changed.

UAL increases when experience is worse for the plan than what was assumed. For example, when the Investment Return assumption was lowered to 6.8%.

UAL decreases when experience is better for the plan than what was assumed. For example, when the Investment Return is greater than the assumed Interest Rate.

It can also happen for salary increases, or demographic changes, such as high levels of turnover, or increasing life expectancy. 25 © 2025 GovInvest Inc.

Unfunded Actuarial Liability
should be Monitored Regularly
Paying off the current UAL does not mean there will be no Unfunded Actuarial Liability in the future.

Each year, new Unfunded Actuarial Liability (both positive and negative) will be created based on plan assumptions and experience. These are referred to as Amortization Bases.

Payments toward the new UAL Amortization Bases are
generally amortized over a 20-year period.
26 © 2025 GovInvest Inc.

Non-Investment Loss
27 © 2025 GovInvest Inc.

Potential Approaches to Addressing UAL
One-time Additional Contribution
Additional Annual Contributions
Budgeted
Based on Budget Surplus or Other Savings
28 © 2025 GovInvest Inc.

Where Does the Money Go?
Direct to CalPERS
Which amortization bases will you pay off?
115 Trust
Internal Reserve
29 © 2025 GovInvest Inc.

Questions
30

© 2025 GovInvest Inc.

While tested against actuarial valuation results, the software results will not necessarily match actuarial valuation results, as no two actuarial models are identical. The software offers financially sound projections and analysis; however, outputs do not guarantee compliance with standards under the Government Accounting Standards Board or Generally Accepted Accounting Principles. The software and this presentation are not prepared in accordance with standards as promulgated by the American Academy of Actuaries, nor do outputs or this presentation constitute Statements of Actuarial Opinion. GovInvest has used census data, plan provisions, and develop the software for Customer. GovInvest has relied on this information without audit.

Disclaimer
31

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 9

To: The Honorable Mayor and City Council
From: Scott Wolfe, City Manager
Meeting Date: January 23, 2025
Subject: Consider Appointment to Vacant City Council Seat – District 4 ______________________________________________________________________________

BACKGROUND
This item returns from the meeting of January 9, 2025, at which time the City Council – unable to decide upon a prospective candidate to appoint to the vacant District 4 seat – directed the matter to be placed on tonight’s agenda, and for any other prospective candidates to submit their statements of interest to the City and contact Councilmembers to discuss appointment.

Staff posted notices on the City’s website, along with repeated posts to the City’s social media pages, advising any interested persons to submit statements of interest by 5:00 pm on Thursday, January 16, in order to have their information placed in the City Council agenda packet.

The prospective candidates which have submitted their information prior to 5:00 pm on January 16 are Carla Mead, Justin Greene, Judith Dale, Leo Elovitz, and Dave King. Their respective statements of interest are included as Attachment 1.

As noted previously, there is no required process for the selection of an appointee. The City Council has indicated a desire to have individual Councilmembers suggest appointees, and then have the selection made by the City Council collectively. The City Council must fill this vacancy by appointment before February 10, 2025, to avoid a special election.

The process of filling of this City Council vacancy is entirely a City Council function. The City Council has considerable discretion pertaining to the process used to decide upon an appointment. Options available to the City Council this evening include appointment of a person to fill the District 4 vacancy, direction to staff to initiate processes for holding a special election, or continuing this matter to a date certain or a date uncertain to allow for additional time to consider prospective candidates prior to the February 10, 2025 deadline, at which point a special election will be required.

City Council Vacancy Page 2 January 23, 2025

FISCAL IMPACT
Filling the District 4 City Council vacancy by appointment would result in no significant fiscal impact. A special election to fill this vacancy will result in a cost to the City in an estimated amount of $35,000.

RECOMMENDATION
Staff recommends that the City Council receive the report, discuss the matter, and either make an appointment to the District 4 City Council seat, continue the matter for possible further consideration, or call for a special election and direct staff to initiate the required process.

ATTACHMENTS
Attachment 1 – Statements of Interest

From: [email protected] [[email protected]]
Sent: Monday, January 13, 2025 4:50 PM
To: City Council
Subject: Appointed to city council
Dear Buellton City Council,
I am writing to inform you that I am willing to serve on the city council for the next two years to fill David Silva’s seat if that is the council's wish.

Judith Dale
381 Thumbelina Drive
Buellton, CA 93427
[email protected]

From: Scott Wolfe
To: Linda Reid
Subject: Council Statement of Interest
Date: Thursday, January 16, 2025 4:49:39 PM
This from Leo Elovitz:

Dear Council members and Mayor,
I would be honored for the Council to consider me for the two year seat appointment. I’ve lived in Buellton’s district 4 for over 30 years and have shared a large interest in the development of our community: I was involved in passage of the previous urban growth boundary measure, participated in months of community forums for developing the Avenue of the Flags and served on the Council from 2012 to 2016. My concerns were and continue to be how our community will best be served by the City. That includes senior housing, our new senior center, the availability of affordable housing for new families and young professionals, more walkability, developing our trail system, our library, the Avenue, Industrial Way, services and places of value for our youth, our schools and the ever increasing challenges posed by our traffic issues to name a few. I would be pleased to talk to each of the Council members and Mayor to discuss my qualifications and interests for this position.

Thank you,
Leo Elovitz
429 Thumbelina Drive
Buellton
Scott Wolfe, ICMA-CM
City Manager
City of Buellton
805-686-7429
Fax: 686-0086
[email protected]

Justin N. Greene
519 Sertoma Way
Buellton, CA 93427
[email protected]
805-453-3681
1/12/2025
Buellton City Council
107 West Highway 246
Buellton, CA 93427
Mayor David Silva, Vice Mayor Elysia Lewis, and Council Members Hudson Hornick and John Sanchez:

I am writing to express my interest in filling the vacant fifth seat on the Buellton City Council. As a resident of Buellton since February of 2019, I am deeply invested in our community’s success and well-being. After reviewing the recent discussions surrounding the vacancy, I would like to offer my services as a caretaker for this seat until the next municipal election.

With my background in both accounting and law, I am confident I can bring valuable expertise to the City Council. As a Certified Public Accountant (inactive) and member of the California State Bar, I have developed a strong foundation in financial oversight, legal processes, and governance.

From February 2003 to October 2010, I worked in the County of Santa Barbara Auditor-Controller’s Office, where I developed and implemented key financial strategies, coordinated audits, and worked with the County Counsel on litigation matters. I helped the County comply with various financial reporting standards and oversaw critical audits. My experience in governmental finance would be valuable in helping ensure Buellton’s fiscal responsibility and transparency.

In my current role as a Deputy District Attorney with the Santa Barbara County District Attorney’s Office, I have gained extensive experience managing complex caseloads, handling legal matters across a range of areas, and advocating for fair outcomes. I have developed skills in decisionmaking, negotiation, and public service that I believe would be beneficial for the City Council.

As outlined in the recent Noozhawk article, the City Council is currently weighing options to fill the vacant seat. By appointing a caretaker such as myself, Buellton could avoid the significant costs of a special election and ensure a seamless transition until the next scheduled election. I am

committed to serving the best interests of Buellton’s residents during this interim period, providing stability and thoughtful decision-making as the city navigates its next steps.

Thank you for considering my application. I would welcome the opportunity to meet with you to discuss how I can contribute to the City Council and the future of our community. Please feel free to contact me at 805-453-3681 or [email protected] to arrange a conversation.

Sincerely,
Justin N. Greene

From: Scott Wolfe
To: Linda Reid
Subject: FW: Fourth district council enter
Date: Thursday, January 16, 2025 4:44:04 PM
-----Original Message-----
From: Dave King
Sent: Thursday, January 16, 2025 4:43 PM
To: Scott Wolfe <[email protected]>
Cc: Hudson Hornick <[email protected]>; John <[email protected]>; Elysia Lewis <[email protected]>; David Silva <[email protected]> Subject: Fourth district council enter
To Whom it may concern,
I am writing you today concerning the Buellton City Council vacancy.

As you may know, I have had 12 years experience on Buellton City Council. Two years I served as Buellton’s Mayor. Over the past several years, I have negotiated several projects that have been for the betterment of the residents in this town.

Going back several years, I encouraged the city to purchase the Zaca golf Course. This purchase has proved to be a monumental benefit to the residents as an outdoor activity for children and adults. I negotiated the solid waste contract with Morborg, which lowered the cost and increased the service of trash collection for residents, commercial businesses and our schools.

Recently, I have been working on several issues that will also benefit the citizens of Buellton. Thought SBCAG, I was able to acquire $100,000 to help fund the reconfiguration of highway 246 to mitigate excessive speed on the west end of town. I successfully negotiated with the Santa Barbara Sheriff’s Department for motorcycle traffic officers on a part time basis. I will continue to lobby the sheriff’s department, for a full time Buellton dedicated traffic officer. I lobbied CALTRANS for several traffic concern within the city. I spoke to the CALTRANS district 5 supervisor and received funding for the dirt lot adjacent to Dale property. This will provide for a sidewalk and curb, providing a continuous safe passage for pedestrians and bike riders. I have also spoken to several CALTRANS supervisors and managers to expedite the reconfiguration (skinny 246) through the west end of town.

Additionally, I have been in conversation to install red, overhead traffic lights, at the crosswalks on Highway 246 for improved pedestrian safety.

For several years, I have been working on installing what is commonly referred to as the SYV, “River Trail.” During a leadership meeting with Assembly Member Hart, I was asked if there were any projects that might need funding. I expressed a need funds for the “River Trail.” Subsequently, Assembly Member Hart called several weeks later and informed me he was able to obtain $425,000 for this project.

I have been working since 2008 with the previous owners, and new owners of the proposed bowling alley for additional recreation options for the community. I have also been in conversations with the Prks Plaza movie theater to possibly re-open as a theater.

I successfully stopped the In and Out project on McMurray Road based on several studies on traffic impact. The location proposed for this project would have had a long lasting negative traffic impact on McMurray Road and the intersection of Highway 246 and US 101.

As far as my qualification are concerned, I served in the US Navy as a Electronic Warfare Technician and was a top 10 student in my electronics class. I served on the USS Midway in the Pacific Theater. After the Navy, I attended college in San Diego and was recruited to the CHP. I served as a motorcycle officer and retired in 2008. My additional training in the CHP was Field Training Officer, Weapons Instruction Officer, CPR instructor, EMT instructor, and Certified Public Speaker. After the CHP, I was elected to the Buellton City Council. During my 12

years in the council, I attended California League of Cities classes, JPIA training and other civic leader meetings every year.

As a council member and Mayor, I have looked at every issue that comes before the council, and carefully weighed how these issues effect the city as a whole. I have never made a decision based on feeling or outside influence. I believe it is the responsibility of civic leaders to make decisions that are in the best interests of the people they serve.

Thank you for your consideration in this matter.

David King
Sent from my iPad

Carla M. Mead
559 Monticello Ln (267) 750 9362
Buellton, CA 93427 [email protected]
January 14, 2024
Buellton City Council
107 W Hwy 246
Buellton, CA 93427
Dear Members of the Buellton City Council,
I am writing to express my strong interest in being appointed to the District Four Council seat. As a resident dedicated to the betterment of our community, I bring a history of civic engagement and a passion for addressing the needs of Buellton’s residents.

I bring to this role over 20 years of experience in education, during which I taught in a wide variety of environments—from schools where 99% of students qualified for free and reduced lunch, to private independent schools, and even a juvenile detention center. These experiences required me to connect with people from diverse backgrounds, understand their unique challenges, dive into race and socio-economic issues, and collaborate to find solutions that worked for everyone. Listening and learning from others is at the core of who I am.

As a teacher, I had to make hundreds of decisions every day—balancing the needs of students, families, and colleagues. Whether it was planning a seating chart, creating behavioral plans and IEPs, or using data to reflect on my practice, I learned to evaluate both sides of an issue and work toward what was best for all involved. Teamwork is an integral part of teaching.. Teachers must be flexible, work collaboratively with their colleagues, and sometimes accept decisions they may not fully agree with. When that happens, it’s about moving forward together, ensuring the solution is successful, and, most critically, approaching the next challenge with a fresh perspective and renewed dedication to the team’s goals. I believe these qualities will serve me well as a City Councilmember.

While my professional background has equipped me with these transferable skills, my volunteer work has provided valuable experience in governance and board processes. When I moved to Buellton, I immediately sought out opportunities to volunteer and connect with the community.

That search led me to People Helping People, SYV Pride, and the SYV Humane Society & DAWG, where I found meaningful ways to contribute. These experiences opened doors to further involvement, eventually leading me to serve on a number of boards. Each of these roles has deepened my understanding of our community’s needs and strengthened my commitment to making a difference.

I have served on the Solvang Theaterfest Board, leading the Community Outreach Committee, and on the Vineyard Village HOA, where I chaired the Landscape Committee. Additionally, I have been a dedicated member of the SYV Humane Society & DAWG Board for the past year and a half, serving as Secretary, Treasurer, and now Chair. Through these roles, I’ve gained hands-on experience with procedural aspects of board meetings, budget creation and management, fundraising, and marketing. When I first joined these boards, I asked countless questions because I believe that to serve effectively, you must deeply understand the systems and processes in place. This commitment to learning and growing is a hallmark of my leadership style.

I’ve also had the opportunity to engage directly with city governance. Previously, I applied to serve on the Planning Commission and then successfully led an appeal regarding the proposed In-N-Out development by citing its violations of the Buellton General Plan. These experiences deepened my understanding of local governance and reinforced the importance of thoughtful planning that balances economic growth with preserving the unique character of our city.

Looking ahead, I am particularly invested in advancing economic development and addressing the housing needs of our growing population, all while cherishing what makes Buellton special.

My approach emphasizes listening to and valuing diverse perspectives to make decisions that truly reflect the needs of our residents. One area I am passionate about is enhancing community engagement. I would advocate for increased outreach efforts to ensure that all residents are informed, involved, and empowered to participate in the decision-making process. City Council needs to be proactive in learning the wants and needs of the community, and then act on this information in a thoughtful way.

This is the second letter of interest I have submitted to the City Council (the first being submitted on January 2) and I made an effort to connect with each council member prior to the January 9, 2024 meeting. At that meeting I spoke, as did a number of my supporters. I believe that the citizens of District Four deserve a representative who has shown interest in this position since it was posted in December and has met all of the required steps to apply before any deadlines. I regret that I was unable to meet Councilman Sanchez in person, but I appreciated the opportunity we had to connect via text. I would also like to extend my thanks to Mayor Silva, Vice-Mayor Lewis, and Councilman Hornick for having met with me. I greatly value the time we spent discussing my qualifications and experience, as well as the insights you shared regarding the challenges and achievements you have encountered in your roles.

Throughout my life, I have been guided by a commitment to service. The opportunity to serve on the City Council would allow me to give back to the community I love in a profound way. It would be an honor to represent not only the citizens of District Four but all of Buellton. I am eager to bring my experience, dedication, and collaborative spirit to this role, and I am confident that I can contribute meaningfully to the continued success of our city.

Thank you for considering my candidacy.

Carla M. Mead

Carla M. Mead
559 Monticello Ln (267) 750 9362
Buellton, CA 93427 [email protected]

COMMUNITY INVOLVEMENT
Board Chair
Santa Ynez Humane Society & DAWG - Buellton, CA
March 2024 - Present
● Formulate and execute with the board and staff strategies that ensure consistency throughout the organization and enhance revenue from major donors, foundations, grants and others.
● Facilitate collaboration and strengthen internal communication with staff and the organization: create and promote a positive work culture ● Oversee the financial status of the organization and all of its programs ● Maintain and establish programs through partnerships with board and staff ● Lead monthly board meetings by overseeing the agenda and approval of minutes ● Set objectives for the board and hold board members accountable to achieving those objectives
● Interview potential board members and orient new board members Board Treasurer/Secretary
Santa Ynez Humane Society & DAWG - Buellton, CA
June 2023 - March 2024
● Active role in providing strategic planning and direction by formulating a short and long term financial plan especially as it relates to endowments, grants and trusts. ● Develop and measure financial goals with the finance committee and board ● Assist in preparing annual budget estimates
● Report to the board about the financial health of the organization ● Prepare agendas for monthly meetings
● Record and prepare minutes for monthly meetings
Board Member, Head of Landscaping Committee
Vineyard Village, HOA - Buellton, CA
November 2022 - August 2024
● Communicated regularly with the the Management Company and Association ● Worked with landscapers to ensure the beautification of the property ● Oversaw all financial decisions and upheld CCRs with the board Board Member, Head of Community Outreach Committee
Solvang Theaterfest - Solvang, CA
June 2023 - June 2024
● Created relationships with community members to promote the theater in the larger community and suggest new events to broaden the theater audience ● Designed new marketing materials to recruit members to the Red Coat Program

PROFESSIONAL EXPERIENCE
Private Tutor
Santa Ynez Valley
October 2022 - Present
● Assist students in high school and middle school (15 students) ● Teach subjects including Mathematics, Literature, History, Science ● Develop strategies to aid with Executive Functioning
Manager of School Partnerships
Carnegie Learning, Inc. - Pittsburgh, PA
January 2019 - April 2021
● Facilitated one-on-coaching sessions with K – 12 teachers and grade-level planning sessions, provided demonstration lessons, lesson planning suggestions and templates, offered specific teaching strategies for teachers to improve their mathematics teaching practice, and continental feedback
● Created an online document as a resource with digital tools and organized presentations, articles, content, and other tools for teacher use and instructed teachers on how to use digital tools ranging from Google Classroom, to online manipulatives, to virtual mathematics demonstrations.
● Designed and delivered custom professional development workshops and developed custom curriculum, rubrics and/or other documents to support specific customer needs according to the needs of individual customers. Topics included, but are not limited to:

Leadership Training, Content Academies, as well as topics from NCTM. ● Facilitated status meetings with key stakeholders within a school or district to promote data-driven accountability and helped teachers use data from both formative and summative assessments to form their teaching.

Middle School Teacher, Mathematics
Pennsylvania and California Schools
September 1998 - December 2018

OTHER WORK EXPERIENCE
Pilates Instructor Wine Server
Mission Pilates - Orcutt, CA Rideau Winery - Solvang, CA November 2022 - Present ` October 2021 - Present

EDUCATION
Masters in Education: Specialization in Mathematics Grades 6-8 Walden University, MN - 2011
Bachelors of Arts in Elementary Education
King’s College, PA - 1998

CITY OF BUELLTON
City Council Agenda Staff Report

City Manager Review: SW
Council Agenda Item No.: 10

To: The Honorable Mayor and City Council

From: Scott Wolfe, City Manager

Meeting Date: January 23, 2025
Subject: Resolution No. 25-01 – “A Resolution of the City Council of the City of Buellton, California, Consenting to the Creation of the Santa Barbara County Wine Business Improvement District”
______________________________________________________________________________

BACKGROUND

On December 17, 2024, the County Board of Supervisors adopted a resolution of Intention to Establish the Santa Barbara County Wine Improvement District (SBCWID). The proposed SBCWID would be a Business Improvement District (similar to the Visit SYV district) which assesses wine tasting facilities in the County in order to fund promotion and engagement efforts designed to increase the County’s wineries’ competitiveness in the overall wine industry. The proposed SBCWID would apply to all wine tasting facilities in the unincorporated County, and within cities that grant consent for the assessment of facilities within their jurisdictions. As such, the County has adopted a Resolution Requesting Consent of the cities thereby requesting that the City of Buellton grant consent for inclusion within the SBCWID.

Wine tasting facilities under the SBCWID would be assessed an amount of 1% of gross retail sales which take place within California. Sales outside the state and wholesale transactions are not assessed. This 1% is expected to generate $1,650,000 annually, with about 73% of these funds to be used for promotions and engagement for the County’s wine industry. The remaining 23% will be used for administrative costs, reserve funds, and collections. Assessments may be spent to provide programs and services for assessed businesses. Assessment funds may be spent outside of California for the purpose of promoting Santa Barbara County as a premier wine destination in order to increase wine tourism within the County.

The proposed SBCWID will be overseen by the County with management of the District being the responsibility of the Santa Barbara County Vintner’s Association, and as such, there is little to no administrative oversight or activity required on the part of the City, apart from adoption of periodic resolutions to extend the term of the District. The initial term of

Resolution No. 25-01 Page 2 January 23, 2025
the SBCWID is five years from the initiation date of the District, which is anticipated to be April 1, 2025.

The SBCWID is supported by more than 50% of wine tasting facilities to be assessed within the County, but staff is unaware of the exact percentage of support, or which facilities within Buellton (if any) are not in support of the District’s formation. There are more than 50 facilities in the City of Buellton which could be subject to this assessment, though the precise number may be unclear based on the information provided in the SBCWID Management District Plan (Attachment B).

Consent of the City is not required for the District to be created. However, if the City Council decides against consenting to the District, Buellton and the wine tasting facilities within the City would be left out of marketing and promotional materials, which could lead to a loss of potential revenue beyond that of the wine facilities, including potential sales tax and transient occupancy tax revenues for no-wine-related sales. As such, the creation of the SBCWID can be viewed as an additional economic development tool of the City.

FISCAL IMPACT
Approval of this resolution is not anticipated to have a direct fiscal impact on this City.

However, approval of this resolution may result in increased sales tax and transient occupancy tax revenues in an amount that cannot be determined at this time.

RECOMMENDATION
That the City Council consider adoption of Resolution No. 25-01 – “A Resolution of the City Council of the City of Buellton, California, Consenting to the Creation of the Santa Barbara County Wine Improvement District”

ATTACHMENTS

Resolution No. 25-01

RESOLUTION NO. 25-01

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BUELLTON, CALIFORNIA, GRANTING CONSENT TO THE

COUNTY OF SANTA BARBARA TO ESTABLISH THE SANTA

BARBARA COUNTY WINE IMPROVEMENT DISTRICT
(SBCWID) AND INCLUDE THE CITY OF BUELLTON IN THE

ESTABLISHED SBCWID
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the County of Santa Barbara (County) to establish business improvement districts for the purposes of promoting assessed businesses; and WHEREAS, the Santa Barbara County Vintners Association, wine tasting facility owners, and representatives from the County have met to consider the formation of the SBCWID; and WHEREAS, the Santa Barbara County Vintners Association has drafted a Management District Plan (Plan) which sets forth the proposed boundary of the SBCWID, a service plan and budget, and a proposed means of governance; and
WHEREAS, the proposed SBCWID includes all wine tasting facilities, existing and in the future, located within the boundaries of the County, which includes the unincorporated areas of the County and the cities of Carpinteria, Santa Barbara, Goleta, Solvang, Buellton, Lompoc, Santa Maria, and Guadalupe; and
WHEREAS, the County has requested consent to form the SBCWID in the City of Buellton with adoption of Santa Barbara County Board of Supervisors Resolution No. 24-282, dated December 17, 2024.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BUELLTON DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council of the City of Buellton adopts as findings the recitals set forth above
SECTION 2. Santa Barbara County is hereby granted consent to include the City of Buellton in the SBCWID, for the formation of the SBCWID and future renewals.

SECTION 3. That this resolution shall be effective upon adoption.

SECTION 4. That the City Clerk shall certify to the passage and adoption of this resolution and shall cause a certified copy to be filed in the book of original resolutions.

SECTION 5. The City Clerk is hereby directed to transmit a certified copy of this Resolution to the Clerk of the County of Santa Barbara.

Resolution No. 25-01 Page 2 January 23, 2025
PASSED, APPROVED, AND ADOPTED on this 23rd day of January, 2025. ______________________________
David Silva
Mayor
ATTEST:
______________________________
Linda Reid
City Clerk

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 11
To: The Honorable Mayor and City Council
From: Scott Wolfe, City Manager
Meeting Date: January 23, 2025
Subject: Resolution No. 25-02 – “A Resolution of the City Council of the City of Buellton, California, in Support of the Santa Ynez Valley Community Aquatics Complex”
______________________________________________________________________________

BACKGROUND
The Santa Ynez Valley Community Aquatics Foundation (501c3) was founded in 2017 by a group of parents and local aquatics advocates that were concerned about the declining state of the high school pool and the need for a publicly accessible pool. Their goal is to raise the funds necessary to build a state-of-the-art aquatics complex on the high school campus in and adjacent to the current pool location. The facility will include a 33 meter competition pool and a 25 yard active living community pool that will serve the needs of the entire community.

The high school pool was built in the 1960’s as a high school/community pool and is now at the end of its life. The pool has undergone multiple renovations but is in need of being replaced. The high school is not able to hold league or CIF competitions at the high school and the public has not had access to public swim time since 2020. The Rec Department currently drives summer camp kids to Lompoc and Santa Maria for swim time during their respective open recreation swim times.

The Community Aquatics Foundation has entered into a Memorandum of Understanding with the High School District for the design, construction, operation and management of the community aquatics center. The Foundation is now actively fundraising through the “Everybody in the Pool” Campaign and is seeking private and public funding through foundation grants, individual donations and State funds. The fundraising goal is $13.7 million by July 2026. The Foundation is committed to providing this essential facility where children can learn to swim safely, seniors and veterans can enjoy low impact exercise classes and athletes can train and compete on their home turf-all under one roof.

Once built the facility will be open year round and accessible to all.

Resolution No. 25-02 Page 2 January 23, 2025
The Foundation has submitted a request to the City for a Resolution in support of the Santa Ynez Valley Community Aquatics Foundation in order to apply for public funding through our local state representatives. The Foundation will also be asking for a resolution of support from the City of Solvang and County of Santa Barbara as it will open up opportunities for multi-jurisdictional grants.

RECOMMENDATION
That the City Council consider adoption of Resolution No. 25-02 – “A Resolution of the City Council of the City of Buellton, California, in support of the Santa Ynez Valley Community Aquatics Center”

ATTACHMENTS

Resolution No. 25-02

RESOLUTION NO. 25-02

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF BUELLTON, CALIFORNIA IN

SUPPORT OF THE SANTA YNEZ VALLEY

COMMUNITY AQUATICS COMPLEX
WHEREAS, the Santa Ynez Valley Community Aquatics Foundation is a non-profit organization dedicated to promoting health, wellness, and water safety through the development of a state-of-the-art aquatics complex to serve all Santa Ynez Valley residents; and WHEREAS, the Santa Ynez Valley Community Aquatics Complex will feature two outdoor pools designed to serve the high school competitive needs and the diverse community needs, including swim lessons, aquatic fitness, water safety education, competitive swimming, and recreational opportunities for all ages and abilities; and WHEREAS, the Santa Ynez Valley Community Aquatics Complex will provide the public with access to a facility that fosters lifelong health, builds community connections, and supports water-based activities in the Santa Ynez Valley; and
WHEREAS, the Santa Ynez Valley Community Aquatics Complex is committed to inspiring youth and families to participate in swimming and water safety programs, as well as supporting local schools, organizations, and underserved community members with access to aquatic resources; and
WHEREAS, the Santa Ynez Valley Community Aquatics Complex aims to educate the public about the importance of water safety and wellness while providing an inclusive space for recreation and competition; and
WHEREAS, the establishment of the Santa Ynez Valley Community Aquatics Complex will bring a significant positive impact to the local economy, creating jobs, attracting visitors, and enhancing the quality of life for residents of Buellton and the greater Santa Ynez Valley; and WHEREAS, the success of the Santa Ynez Valley Community Aquatics Complex is dependent on raising significant public and private funds to construct the facility, secure necessary permits, and ensure its long-term sustainability.

NOW, THEREFORE, IT IS RESOLVED THAT the City Council of the City of Buellton states its support for the Santa Ynez Valley Community Aquatics Complex, and encourages residents, businesses, and community organizations in Buellton and beyond to join in supporting the fundraising efforts to provide this essential community benefit to the Santa Ynez Valley.

Resolution No. 25-02 Page 2 January 23, 2025
PASSED, APPROVED and ADOPTED this 23rd day of January, 2025. ______________________________
David Silva
Mayor
ATTEST:
_____________________________
Linda Reid
City Clerk