Finance and Audit Committee
September 11, 2023

DRAFT
221 of 301
ATTACHMENT 2:

General Fund Interim Statements by Department
DRAFT 222 of 301
City of Goleta
General Fund Interim Statement of Revenues and Expenditures by Department and Program Budget to Actual Comparison
For the Quarter Ended June 30, 2023
Attachment 2
Annual
"Current"
Budget

QTR YTD
Actuals
Remaining
Balance
Percent
Received
Prior Year
QTR YTD Actuals
Taxes
Property Taxes 8,547,387 9,332,590 (785,203) 109.2% 8,655,521 Sales Taxes 8,316,500 8,726,058 (409,558) 104.9% 8,572,807 Transient Occupancy Tax 13,100,000 13,882,621 (782,621) 106.0% 14,341,129 Cannabis Tax 1,100,000 1,021,742 78,258 92.9% 1,738,534 Franchise Fee 1,592,100 1,636,443 (44,343) 102.8% 1,513,730 Total 32,655,987 34,599,454 (1,943,467) 106.0% 34,821,719 Licenses & Service Charges
Legal Deposits Earned 1,000 7,300 (6,300) 730.0% 15,982 Planning Fees 103,000 117,807 (14,807) 114.4% 134,161
Planning Deposits Earned 200,000 329,810 (129,810) 164.9% 255,513 Building Permits 605,000 456,122 148,878 75.4% 422,776
Public Works Deposits Earned 58,000 32,733 25,267 56.4% 44,588 PW/Engineering Fees 125,000 97,640 27,360 78.1% 134,593 Solid Waste Roll Off Fees 30,000 26,455 3,545 88.2% 29,120 Business License 452,000 538,992 (86,992) 119.2% 515,712 Plan Check Fees 334,500 397,352 (62,852) 118.8% 290,934 Other Licenses & Charges 103,300 114,501 (11,201) 110.8% 85,791 Total 2,011,800 2,118,713 (106,913) 105.3% 1,929,169
Fines and Forfeitures
Fines & Penalties 141,000 163,584 (22,584) 116.0% 168,275 Total 141,000 163,584 (22,584) 116.0% 168,275
Investment Income
Interest & Rent Income 334,000 994,284 (660,284) 297.7% (105,801) Total 334,000 994,284 (660,284) 297.7% (105,801)
Reimbursements
Reimbursements 326,000 298,160 27,840 91.5% 386,437
Total 326,000 298,160 27,840 91.5% 386,437
Other Revenues
Other Revenues 119,222 125,481 (6,258) 105.2% 398,976
Total 119,222 125,481 (6,258) 105.2% 398,976
Other Financing Sources
Transfers In 43,800 28,558 15,242 65.2% 24,704
Total 43,800 28,558 15,242 65.2% 24,704
TOTAL REVENUES 35,631,809 38,328,234 (2,696,425) 107.6% 37,623,480

DRAFT 223 of 301
City of Goleta
General Fund Interim Statement of Revenues and Expenditures by Department and Program Budget to Actual Comparison
For the Quarter Ended June 30, 2023
Attachment 2
Annual
"Current"
Budget

QTR YTD
Actuals Encumbrances Totals
Remaining
Balance
%YTD Expended
w/ Encumbr
General Government
City Council 497,750 488,058 - 488,058 9,692 98.1%
City Manager 2,081,600 1,961,838 - 1,961,838 119,762 94.2% City Clerk 727,500 698,753 - 698,753 28,747 96.0%
City Attorney 1,075,323 1,084,277 - 1,084,277 (8,954) 100.8% Community Relations 519,707 505,204 - 505,204 14,503 97.2% Support Services 1,516,100 1,352,841 - 1,352,841 163,259 89.2% Total 6,417,980 6,090,971 - 6,090,971 327,009 94.9%
General Services
General Services 651,400 568,696 - 568,696 82,704 87.3% Facilities 1,386,151 1,087,129 - 1,087,129 299,022 78.4% Information Technology 839,400 671,345 - 671,345 168,055 80.0% Fleet Management 813,100 496,430 - 496,430 316,670 61.1% Total 3,690,051 2,823,600 - 2,823,600 866,451 76.5%
Library
Library Services 434,591 369,363 - 369,363 65,228 85.0% Total 434,591 369,363 - 369,363 65,228 85.0%
Finance
Administration 1,793,380 1,391,911 - 1,391,911 401,469 77.6% Total 1,793,380 1,391,911 - 1,391,911 401,469 77.6%
Planning & Environmental Review
Administration 436,300 402,174 - 402,174 34,126 92.2%
Current Planning 2,031,111 1,558,781 13,103 1,571,884 459,227 77.4% Building & Safety 664,085 532,644 - 532,644 131,441 80.2% Advanced Planning 1,059,422 625,026 - 625,026 434,396 59.0% Planning Commission 54,400 20,460 - 20,460 33,941 37.6% Sustainability Program 453,233 324,642 - 324,642 128,591 71.6% Housing Program 256,100 186,827 - 186,827 69,273 73.0%
Total 4,954,651 3,650,553 13,103 3,663,656 1,290,995 73.9% Public Works
Administration 891,200 871,175 - 871,175 20,025 97.8%
Engineering Services 4,074,767 1,569,954 - 1,569,954 2,504,813 38.5% Facility Maintenance - 545 - 545 (545) #DIV/0!
Parks & Open Spaces 2,031,619 1,580,162 - 1,580,162 451,457 77.8% Capital Improvement Progra 869,464 1,779,853 - 869,464 910,389 48.9% Street Lighting 33,700 32,229 - 32,229 1,471 95.6%
Traffic Ops & Maintenance 563,800 110,287 - 110,287 453,513 19.6% Street Maintenance 6,010,681 4,210,058 - 4,210,058 1,800,623 70.0% Solid Waste and Environme - - - - -
Total 15,385,619 9,243,873 - 9,243,873 6,141,746 60.1%
Neighborhood Services
Neighborhood Services 1,211,834 1,060,768 - 1,060,768 151,066 87.5% Homelessness 504,600 358,288 - 358,288 146,312 71.0%
Economic Development 179,643 179,643 - 179,643 - 100.0% Parks & Recreation 730,665 642,121 - 642,121 88,543 87.9% Parks & Recreation 99,892 - - - 99,892 0.0%
Total 2,726,634 2,240,820 - 2,240,820 485,814 82.2%
Public Safety
Public Safety 9,766,000 9,157,530 - 9,157,530 608,470 93.8% Total 9,766,000 9,157,530 - 9,157,530 608,470 93.8%
Non-Departmental
Debit Service 1,827,600 1,816,073 - 1,816,073 11,527 99.4% Non-Departmental 20,000 24,023 - 24,023 (4,023) 120.1%
Total 1,847,600 1,840,096 - 1,840,096 7,504 99.6%
Capital Improvement Projects
Capital Improvement Project 1,130,063 9,716,689 - 1,130,063 8,586,626 11.6% Total 9,716,689 1,130,063 - 1,130,063 8,586,626 11.6%
TOTAL EXPENDITURES 56,733,194 37,938,780 13,103 37,951,883 66.9% 18,781,312

NET REVENUES OVER
EXPENDITURES (21,101,385) 389,454
BEGINNING FUND BALANCE 39,268,940 39,268,940
ENDING FUND BALANCE 18,167,555 39,658,394

DRAFT 224 of 301
ATTACHMENT 3:

Interim Revenue and Expenditure Summary By Fund
DRAFT 225 of 301
City of Goleta
Interim Statement of Revenues and Expenditures - Summary by Fund For the Quarter Ended June 30, 2023
Attachment 3
Printed Description Original Budget c Current
Budget d Budget Requests e Proposed Budget f YTD Actual Encumbrances Totals Percent of
Current Budget
101 General Fund
Revenue 36,041,100 35,631,809 - 35,631,809 38,328,234 - 38,328,234 107.6% Expenditures 44,075,303 56,733,194 (1,050,683) 55,682,511 37,938,780 13,103 37,951,883 66.9% Addition to/(use of) reserves (8,034,203) (21,101,385) 1,050,683 (20,050,702) 389,454 (13,103) 376,351 Beginning Fund Balance 39,268,940 39,268,940 39,268,940 39,268,940 Ending Fund Balance 31,234,737 18,167,555 19,218,238 39,658,394 201 Gas Tax
Revenue 892,266 892,266 - 892,266 856,392 - 856,392 96.0% Expenditures 765,600 2,671,694 - 2,671,694 1,487,532 - 1,487,532 55.7% Addition to/(use of) reserves 126,666 (1,779,428) - (1,779,428) (631,140) - (631,140) Beginning Fund Balance 1,779,457 1,779,457 1,779,457 1,779,457 Ending Fund Balance 1,906,123 29 29 1,148,317
202 Local Transportation
Revenue 28,100 28,100 - 28,100 40,242 - 40,242 143.2%
Expenditures - 55,232 - 55,232 - - - 0.0%
Addition to/(use of) reserves 28,100 (27,132) - (27,132) 40,242 - 40,242 Beginning Fund Balance 212,617 212,617 212,617 212,617
Ending Fund Balance 240,717 185,485 185,485 252,859
203 RMRA
Revenue 722,119 722,119 - 722,119 690,837 - 690,837 95.7% Expenditures 619,000 1,403,359 - 1,403,359 1,026,433 - 1,026,433 73.1% Addition to/(use of) reserves 103,119 (681,240) - (681,240) (335,596) - (335,596) Beginning Fund Balance 984,941 984,941 984,941 984,941
Ending Fund Balance 1,088,060 303,701 303,701 649,345
205 Measure A
Revenue 2,129,200 2,129,200 - 2,129,200 2,376,965 - 2,376,965 111.6% Expenditures 1,827,000 5,203,459 (470,678) 4,732,781 1,390,160 - 1,390,160 26.7% Addition to/(use of) reserves 302,200 (3,074,259) 470,678 (2,603,581) 986,805 - 986,805 Beginning Fund Balance 4,604,290 4,604,290 4,604,290 4,604,290 Ending Fund Balance 4,906,490 1,530,031 2,000,709 5,591,095 206 Measure A-Other
Revenue - 2,192,469 - 2,192,469 - - - 0.0%
Expenditures 1,263,000 1,601,838 - 1,601,838 145,946 - 145,946 9.1% Addition to/(use of) reserves (1,263,000) 590,631 - 590,631 (145,946) - (145,946) Beginning Fund Balance (590,631) (590,631) (590,631) (590,631) Ending Fund Balance (1,853,631) - - (736,577)
208 County Per Capita - Goleta Library
Revenue 682,612 729,925 - 729,925 732,513 - 732,513 100.4% Expenditures 761,200 761,200 - 761,200 657,424 - 657,424 86.4% Addition to/(use of) reserves (78,588) (31,275) - (31,275) 75,089 - 75,089 Beginning Fund Balance 163,932 163,932 163,932 163,932
Ending Fund Balance 85,344 132,657 132,657 239,021
209 County Per Capita - Buellton Library
Revenue 157,255 157,255 - 157,255 160,629 - 160,629 102.1% Expenditures 135,400 135,400 - 135,400 100,149 - 100,149 74.0% Addition to/(use of) reserves 21,855 21,855 - 21,855 60,480 - 60,480 Beginning Fund Balance 150,003 150,003 150,003 150,003
Ending Fund Balance 171,858 171,858 171,858 210,483
210 County Per Capita - Solvang Library
Revenue 180,468 180,468 - 180,468 178,566 - 178,566 98.9% Expenditures 161,400 161,400 - 161,400 128,606 - 128,606 79.7% Addition to/(use of) reserves 19,068 19,068 - 19,068 49,961 - 49,961 Beginning Fund Balance 131,980 131,980 131,980 131,980
Ending Fund Balance 151,048 151,048 151,048 181,940
211 Solid Waste
Revenue 1,423,800 1,531,405 - 1,531,405 1,574,291 - 1,574,291 102.8% Expenditures 1,515,800 1,895,593 - 1,895,593 1,511,548 - 1,511,548 79.7% Addition to/(use of) reserves (92,000) (364,188) - (364,188) 62,743 - 62,743 Beginning Fund Balance 1,533,333 1,533,333 1,533,333 1,533,333 Ending Fund Balance 1,441,333 1,169,145 1,169,145 1,596,076 212 Public Safety Donations
Revenue - - - - (17,870) - (17,870) 0.0%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves - - - - (17,870) - (17,870) Beginning Fund Balance 29,618 29,618 29,618 29,618
Ending Fund Balance 29,618 29,618 29,618 11,748
Page "7
DRAFT 226 of 301
City of Goleta
Interim Statement of Revenues and Expenditures - Summary by Fund For the Quarter Ended June 30, 2023
Attachment 3
Printed Description Original Budget c Current
Budget d Budget Requests e Proposed Budget f YTD Actual Encumbrances Totals Percent of
Current Budget
213 Buellton Library
Revenue 195,479 195,479 - 195,479 197,984 - 197,984 101.3% Expenditures 216,900 216,900 - 216,900 215,690 - 215,690 99.4% Addition to/(use of) reserves (21,421) (21,421) - (21,421) (17,706) - (17,706) Beginning Fund Balance 43,036 43,036 43,036 43,036
Ending Fund Balance 21,615 21,615 21,615 25,330
214 Solvang Library
Revenue 197,555 197,555 - 197,555 196,087 - 196,087 99.3% Expenditures 224,800 224,800 - 224,800 229,276 - 229,276 102.0% Addition to/(use of) reserves (27,245) (27,245) - (27,245) (33,189) - (33,189) Beginning Fund Balance 21,817 21,817 21,817 21,817
Ending Fund Balance (5,428) (5,428) (5,428) (11,372)
217 Community Center
Revenue 124,590 174,590 - 174,590 168,628 - 168,628 96.6% Expenditures 501,800 601,300 - 601,300 268,102 - 268,102 44.6% Addition to/(use of) reserves (377,210) (426,710) - (426,710) (99,474) - (99,474) Beginning Fund Balance - - - -
Ending Fund Balance (377,210) (426,710) (426,710) (99,474) 220 GTIP
Revenue 2,016,700 2,016,700 - 2,016,700 275,217 - 275,217 13.6% Expenditures 3,291,416 18,441,436 (1,799,171) 16,642,265 3,121,680 - 3,121,680 16.9% Addition to/(use of) reserves (1,274,716) (16,424,736) 1,799,171 (14,625,565) (2,846,463) (2,846,463) - Beginning Fund Balance 13,579,984 13,579,984 13,579,984 13,579,984 Ending Fund Balance 12,305,268 (2,844,752) (1,045,581) 10,733,520 221 Parks DIF
Revenue 90,000 90,000 - 90,000 180,515 - 180,515 200.6% Expenditures 1,120,000 7,007,266 - 7,007,266 350,713 - 350,713 5.0% Addition to/(use of) reserves (1,030,000) (6,917,266) - (6,917,266) (170,198) - (170,198) Beginning Fund Balance 8,436,144 8,436,144 8,436,144 8,436,144 Ending Fund Balance 7,406,144 1,518,877 1,518,877 8,265,945 222 Public Facilities DIF
Revenue 17,800 17,800 - 17,800 (770) - (770) -4.3%
Expenditures - 17,030 - 17,030 - - - 0.0%
Addition to/(use of) reserves 17,800 770 - 770 (770) - (770) Beginning Fund Balance (1,639) (1,639) (1,639) (1,639)
Ending Fund Balance 16,161 (869) (869) (2,409)
223 Library DIF
Revenue 5,000 5,000 - 5,000 5,015 - 5,015 100.3%
Expenditures 184,000 184,000 - 184,000 57,854 - 57,854 31.4% Addition to/(use of) reserves (179,000) (179,000) - (179,000) (52,839) - (52,839) Beginning Fund Balance 220,719 220,719 220,719 220,719
Ending Fund Balance 41,719 41,719 41,719 167,880
224 Sheriff Facilities DIF
Revenue 300 300 - 300 2,917 - 2,917 972.4%
Expenditures - 70,281 - 70,281 - - - 0.0%
Addition to/(use of) reserves 300 (69,981) - (69,981) 2,917 - 2,917 Beginning Fund Balance 139,502 139,502 139,502 139,502
Ending Fund Balance 139,802 69,521 69,521 142,419
225 Housing in Lieu
Revenue 6,000 6,000 - 6,000 26,356 - 26,356 439.3%
Expenditures 25,000 25,000 - 25,000 25,000 - 25,000 100.0% Addition to/(use of) reserves (19,000) (19,000) - (19,000) 1,356 - 1,356 Beginning Fund Balance 1,250,001 1,250,001 1,250,001 1,250,001 Ending Fund Balance 1,231,001 1,231,001 1,231,001 1,251,357 226 Environmental Programs
Revenue 500 500 - 500 3,580 - 3,580 716.0%
Expenditures 9,400 9,400 - 9,400 - - - 0.0%
Addition to/(use of) reserves (8,900) (8,900) - (8,900) 3,580 - 3,580 Beginning Fund Balance 171,202 171,202 171,202 171,202
Ending Fund Balance 162,302 162,302 162,302 174,782
229 Fire DIF
Revenue 52,300 52,300 - 52,300 71,759 - 71,759 137.2%
Expenditures - 4,842,367 - 4,842,367 7,229 - 7,229 0.1% Addition to/(use of) reserves 52,300 (4,790,067) - (4,790,067) 64,530 - 64,530 Beginning Fund Balance 3,387,651 3,387,651 3,387,651 3,387,651 Ending Fund Balance 3,439,951 (1,402,416) (1,402,416) 3,452,181 Page "8
DRAFT 227 of 301
City of Goleta
Interim Statement of Revenues and Expenditures - Summary by Fund For the Quarter Ended June 30, 2023
Attachment 3
Printed Description Original Budget c Current
Budget d Budget Requests e Proposed Budget f YTD Actual Encumbrances Totals Percent of
Current Budget
230 Long Range Development Plan (LRDP)
Revenue - 3,318,514 - 3,318,514 368 - 368 0.0%
Expenditures - 3,318,514 - 3,318,514 116,938 - 116,938 3.5% Addition to/(use of) reserves - - - - (116,569) - (116,569) Beginning Fund Balance 160,196 160,196 160,196 160,196
Ending Fund Balance 160,196 160,196 160,196 43,626
231 Developer Agreements
Revenue 1,500 1,500 - 1,500 - - - 0.0%
Expenditures - 270,000 - 270,000 - - - 0.0%
Addition to/(use of) reserves 1,500 (268,500) - (268,500) - - - Beginning Fund Balance 615,163 615,163 615,163 615,163
Ending Fund Balance 616,663 346,663 346,663 615,163
232 County Fire DIF
Revenue 100,000 849,514 - 849,514 - - - 0.0%
Expenditures 100,000 723,951 - 723,951 151,511 - 151,511 20.9% Addition to/(use of) reserves - 125,563 - 125,563 (151,511) - (151,511) Beginning Fund Balance (125,563) (125,563) (125,563) (125,563) Ending Fund Balance (125,563) - - (277,075)
233 OBF-SCE
Revenue - 503,201 - 503,201 - - - 100.0%
Expenditures - (131,411) - (131,411) (131,411) - (131,411) 20.7% Addition to/(use of) reserves - 634,612 - 634,612 131,411 - 131,411 Beginning Fund Balance (3,201) (3,201) (3,201) (3,201)
Ending Fund Balance (3,201) 631,411 631,411 128,210
234 Storm Drain Facilities
Revenue 72,700 72,700 - 72,700 10,574 - 10,574 14.5%
Expenditures 550,000 600,000 - 600,000 26,413 - 26,413 4.4% Addition to/(use of) reserves (477,300) (527,300) - (527,300) (15,839) - (15,839) Beginning Fund Balance 532,103 532,103 532,103 532,103
Ending Fund Balance 54,803 4,803 4,803 516,264
235 Bicycle & Pedestrian Facilities
Revenue 14,400 14,400 - 14,400 2,731 - 2,731 0.0%
Expenditures - - - - - - - 19.0%
Addition to/(use of) reserves 14,400 14,400 - 14,400 2,731 - 2,731 Beginning Fund Balance 221,676 221,676 221,676 221,676
Ending Fund Balance 236,076 236,076 236,076 224,407
236 Misc Grants Library
Revenue - 15,628 - 15,628 17,778 - 17,778 113.8%
Expenditures - 56,480 - 56,480 23,807 - 23,807 42.2%
Addition to/(use of) reserves - (40,852) - (40,852) (6,029) - (6,029) Beginning Fund Balance 40,852 40,852 40,852 40,852
Ending Fund Balance 40,852 - - 34,823
237 Local Grants
Revenue - 61,333 - 61,333 - - - 0.0%
Expenditures - 555 - 555 - - - 0.0%
Addition to/(use of) reserves - 60,778 - 60,778 - - -
Beginning Fund Balance (60,778) (60,778) (60,778) (60,778) Ending Fund Balance (60,778) - - (60,778)
238 Non-Residential Affordable Housing DIF
Revenue 84,200 84,200 - 84,200 6,359 - 6,359 7.6%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves 84,200 84,200 - 84,200 6,359 - 6,359 Beginning Fund Balance - - - -
Ending Fund Balance 84,200 84,200 84,200 6,359
301 State Park Grant
Revenue 177,952 177,952 - 177,952 - - - 0.0%
Expenditures 177,952 177,952 - 177,952 - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance - - - -
Ending Fund Balance - - - -
302 Public Safety Fund COPS
Revenue 156,700 165,271 - 165,271 165,271 - 165,271 100.0% Expenditures 156,700 165,271 - 165,271 165,271 - 165,271 100.0% Addition to/(use of) reserves - - - - (0) - (0)
Beginning Fund Balance - - - -
Ending Fund Balance - - - (0)
Page "9
DRAFT 228 of 301
City of Goleta
Interim Statement of Revenues and Expenditures - Summary by Fund For the Quarter Ended June 30, 2023
Attachment 3
Printed Description Original Budget c Current
Budget d Budget Requests e Proposed Budget f YTD Actual Encumbrances Totals Percent of
Current Budget
304 Solid Waste Fund Recycle
Revenue 8,000 54,605 - 54,605 46,605 - 46,605 85.3%
Expenditures 8,200 54,805 - 54,805 18,289 - 18,289 33.4% Addition to/(use of) reserves (200) (200) - (200) 28,316 - 28,316 Beginning Fund Balance 39,334 39,334 39,334 39,334
Ending Fund Balance 39,134 39,134 39,134 67,650
305 RSTP State Grant
Revenue - 565,315 - 565,315 - - - 0.0%
Expenditures - (64,994) - (64,994) (75,145) - (75,145) 115.6% Addition to/(use of) reserves - 630,309 - 630,309 75,145 - 75,145 Beginning Fund Balance (495,495) (495,495) (495,495) (495,495) Ending Fund Balance (495,495) 134,814 134,814 (420,350) 306 LSTP
Revenue 119,117 603,109 - 603,109 - - - 0.0%
Expenditures 119,117 415,732 - 415,732 33,207 - 33,207 8.0% Addition to/(use of) reserves - 187,377 - 187,377 (33,207) - (33,207) Beginning Fund Balance (186,933) (186,933) (186,933) (186,933) Ending Fund Balance (186,933) 444 444 (220,140)
308 STIP
Revenue - 11,386,694 - 11,386,694 - - - 0.0%
Expenditures - 11,372,000 - 11,372,000 23,536 - 23,536 0.2% Addition to/(use of) reserves - 14,694 - 14,694 (23,536) - (23,536) Beginning Fund Balance (4,309) (4,309) (4,309) (4,309)
Ending Fund Balance (4,309) 10,385 10,385 (27,845)
310 CAL FIRE GRANT
Revenue - 1,708,872 - 1,708,872 - - - 0.0%
Expenditures - 1,708,872 - 1,708,872 - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance - - - -
Ending Fund Balance - - - -
311 Misc. Grants
Revenue - 538,500 - 538,500 316,265 - 316,265 58.7%
Expenditures - 547,935 - 547,935 114,671 - 114,671 20.9% Addition to/(use of) reserves - (9,435) - (9,435) 201,594 - 201,594 Beginning Fund Balance 9,465 9,465 9,465 9,465
Ending Fund Balance 9,465 30 30 211,059
317 SSARP Grant
Revenue - 53,000 - 53,000 - - - 0.0%
Expenditures - 3,596 - 3,596 4,078 - 4,078 113.4%
Addition to/(use of) reserves - 49,404 - 49,404 (4,078) - (4,078) Beginning Fund Balance (49,404) (49,404) (49,404) (49,404) Ending Fund Balance (49,404) - - (53,482)
318 Active Transportation Program - State
Revenue 650,000 3,359,000 - 3,359,000 - - - 0.0%
Expenditures 650,000 3,344,245 - 3,344,245 - - - 0.0%
Addition to/(use of) reserves - 14,755 - 14,755 - - -
Beginning Fund Balance (14,755) (14,755) (14,755) (14,755) Ending Fund Balance (14,755) 0 0 (14,755)
319 Housing & Community Development State Fund
Revenue - 233,654 - 233,654 25,123 - 25,123 10.8%
Expenditures - 180,322 - 180,322 110,164 - 110,164 61.1% Addition to/(use of) reserves - 53,331 - 53,331 (85,041) - (85,041) Beginning Fund Balance (53,331) (53,331) (53,331) (53,331) Ending Fund Balance - (53,331) - (138,372)
320 Cal OES
Revenue - (14,231) - (14,231) - - - 0.0%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves - (14,231) - (14,231) - - - Beginning Fund Balance 14,231 14,231 14,231 14,231
Ending Fund Balance 14,231 - - 14,231
321 TIRCP
Revenue 9,681,877 10,739,773 - 10,739,773 599,593 - 599,593 Expenditures 9,681,877 10,478,711 - 10,478,711 707,247 - 707,247 6.7% Addition to/(use of) reserves - 261,062 - 261,062 (107,654) - (107,654) -41.2% Beginning Fund Balance (230,458) (230,458) (230,458) (230,458) Ending Fund Balance (230,458) 30,604 30,604 (338,112)
Page "10
DRAFT 229 of 301
City of Goleta
Interim Statement of Revenues and Expenditures - Summary by Fund For the Quarter Ended June 30, 2023
Attachment 3
Printed Description Original Budget c Current
Budget d Budget Requests e Proposed Budget f YTD Actual Encumbrances Totals Percent of
Current Budget
322 MBHMP
Revenue - 3,975,000 - 3,975,000 294,787 - 294,787
Expenditures 75,000 3,399,124 - 3,399,124 951,843 - 951,843 28.0% Addition to/(use of) reserves (75,000) 575,876 - 575,876 (657,056) - (657,056) -114.1% Beginning Fund Balance (592,760) (592,760) (592,760) (592,760) Ending Fund Balance (667,760) (16,884) (16,884) (1,249,816) 323 Cal OES PSPS Grant
Revenue - - - - - - -
Expenditures - 29,770 - 29,770 24,249 - 24,249 81.5%
Addition to/(use of) reserves - (29,770) - (29,770) (24,249) - (24,249) 81.5% Beginning Fund Balance 29,770 29,770 29,770 29,770
Ending Fund Balance 29,770 - - 5,521
324 California Planning Program Grant
Revenue - 114,881 - 114,881 107,790 - 107,790
Expenditures - 7,091 - 7,091 - - - 0.0%
Addition to/(use of) reserves - 107,790 - 107,790 107,790 - 107,790 100.0% Beginning Fund Balance (107,790) (107,790) (107,790) (107,790) Ending Fund Balance (107,790) - - -
325 Isla Vista Library Grant
Revenue - - - - - - -
Expenditures - 51,870 - 51,870 84,500 - 84,500 162.9%
Addition to/(use of) reserves - (51,870) - (51,870) (84,500) - (84,500) 162.9% Beginning Fund Balance 51,870 51,870 51,870 51,870
Ending Fund Balance 51,870 - - (32,629)
401 HBP
Revenue 1,668,000 15,478,056 - 15,478,056 230,098 - 230,098 1.5% Expenditures 1,668,000 15,374,643 - 15,374,643 599,721 - 599,721 3.9% Addition to/(use of) reserves - 103,413 - 103,413 (369,623) - (369,623) Beginning Fund Balance (103,412) (103,412) (103,412) (103,412) Ending Fund Balance (103,412) 0 0 (473,035)
402 CDBG
Revenue 353,279 995,374 - 995,374 198,594 - 198,594 20.0% Expenditures 593,072 995,374 - 995,374 209,949 - 209,949 21.1% Addition to/(use of) reserves (239,793) - - - (11,355) - (11,355) Beginning Fund Balance - - - -
Ending Fund Balance (239,793) - - (11,355)
409 OTS
Revenue - 3,972 - 3,972 - - - 0.0%
Expenditures - (565) - (565) (565) - (565) 100.0%
Addition to/(use of) reserves - 4,537 - 4,537 565 - 565 Beginning Fund Balance (4,537) (4,537) (4,537) (4,537)
Ending Fund Balance (4,537) - - (3,972)
417 HSIP Hwy Safety Imp.

Revenue 2,739,500 3,120,100 - 3,120,100 - - - 0.0%
Expenditures 2,739,500 3,120,100 - 3,120,100 - - - 0.0% Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance 5,636 5,636 5,636 5,636
Ending Fund Balance 5,636 5,636 5,636 5,636
419 TIGER
Revenue - - - - - - - 0.0%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance - - - -
Ending Fund Balance - - - -
420 FHWA - FEMA Reimb
Revenue - 87,746 - 87,746 - - - 0.0%
Expenditures - 87,746 - 87,746 - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance 58,107 58,107 58,107 58,107
Ending Fund Balance 58,107 58,107 58,107 58,107
421 Hazard Mitigation Grant Program
Revenue - 3,858,620 - 3,858,620 - - - 0.0%
Expenditures - 3,853,060 - 3,853,060 1,270,296 - 1,270,296 33.0% Addition to/(use of) reserves - 5,560 - 5,560 (1,270,296) (1,270,296) - Beginning Fund Balance (5,560) (5,560) (5,560) (5,560)
Ending Fund Balance (5,560) 0 0 (1,275,856)
Page "11
DRAFT 230 of 301
City of Goleta
Interim Statement of Revenues and Expenditures - Summary by Fund For the Quarter Ended June 30, 2023
Attachment 3
Printed Description Original Budget c Current
Budget d Budget Requests e Proposed Budget f YTD Actual Encumbrances Totals Percent of
Current Budget
423 Coronavirus State & Local Fiscal Recovery Funds
Revenue 2,966,995 5,933,990 - 5,933,990 - - - 0.0%
Expenditures 5,783,990 5,783,990 - 5,783,990 825,000 - 825,000 14.3% Addition to/(use of) reserves (2,816,995) 150,000 - 150,000 (825,000) - (825,000) Beginning Fund Balance - - - -
Ending Fund Balance (2,816,995) 150,000 150,000 (825,000) 424 Community Project Funding HMGP
Revenue - 3,000,000 - 3,000,000 - - - 0.0%
Expenditures - 3,000,000 - 3,000,000 - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance - - - -
Ending Fund Balance - - - -
501 Library Services
Revenue 560,600 560,600 - 560,600 574,365 - 574,365 102.5% Expenditures 673,500 673,500 - 673,500 582,363 - 582,363 86.5% Addition to/(use of) reserves (112,900) (112,900) - (112,900) (7,998) - (7,998) Beginning Fund Balance 896,723 896,723 896,723 896,723
Ending Fund Balance 783,823 783,823 783,823 888,726
502 Street Lighting
Revenue 306,000 306,000 - 306,000 309,413 - 309,413 101.1% Expenditures 305,500 333,637 - 333,637 229,617 - 229,617 68.8% Addition to/(use of) reserves 500 (27,637) - (27,637) 79,795 - 79,795 Beginning Fund Balance 190,727 190,727 190,727 190,727
Ending Fund Balance 191,227 163,090 163,090 270,522
503 PEG
Revenue 71,000 71,000 - 71,000 60,333 - 60,333 85.0%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves 71,000 71,000 - 71,000 60,333 - 60,333 Beginning Fund Balance 177,574 177,574 177,574 177,574
Ending Fund Balance 248,574 248,574 248,574 237,907
504 CASp Cert and Training
Revenue 100 100 - 100 630 - 630 629.8%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves 100 100 - 100 630 - 630
Beginning Fund Balance 532 532 532 532
Ending Fund Balance 632 632 632 1,162
605 RDA Successor-NonHousing
Revenue 1,151,844 1,151,844 - 1,151,844 1,183,233 - 1,183,233 102.7% Expenditures 1,225,788 1,225,788 - 1,225,788 1,109,603 - 1,109,603 90.5% Addition to/(use of) reserves (73,944) (73,944) - (73,944) 73,630 - 73,630 Beginning Fund Balance (8,733,803) (8,733,803) (8,733,803) (8,733,803) Ending Fund Balance (8,807,747) (8,807,747) (8,807,747) (8,660,173) 608 iBank
Revenue - - - - - - - 0.0%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance - - - -
Ending Fund Balance - - - -
701 Comstock Plover Endmnt
Revenue 2,000 2,000 - 2,000 3,213 - 3,213 160.6%
Expenditures 2,000 2,000 - 2,000 - - - 0.0%
Addition to/(use of) reserves - - - - 3,213 - 3,213
Beginning Fund Balance - - - -
Ending Fund Balance - - - 3,213
702 Section 115 Trust - Pension
Revenue - - - - - - - 0.0%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance 153,548 153,548 153,548 153,548
Ending Fund Balance 153,548 153,548 153,548 153,548
703 Section 115 Trust - OPEB
Revenue - - - - - - - 0.0%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance 301,225 301,225 301,225 301,225
Ending Fund Balance 301,225 301,225 301,225 301,225
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DRAFT 231 of 301
City of Goleta
Interim Statement of Revenues and Expenditures - Summary by Fund For the Quarter Ended June 30, 2023
Attachment 3
Printed Description Original Budget c Current
Budget d Budget Requests e Proposed Budget f YTD Actual Encumbrances Totals Percent of
Current Budget
801 Developer Deposit
Revenue - - - - - - - 0.0%
Expenditures - - - - - - - 0.0%
Addition to/(use of) reserves - - - - - - -
Beginning Fund Balance - - - -
Ending Fund Balance - - - -

TOTAL FOR ALL FUNDS
Revenue 65,848,908 120,103,026 - 120,103,026 50,201,210 50,201,210 41.8% Expenditures 81,207,215 173,421,814 (3,320,532) 170,101,282 55,837,272 13,103 55,850,375 32.2% Addition to/(use of) reserves (15,358,307) (53,318,789) 3,320,532 (49,998,257) (5,636,062) 13,103 (5,649,165) Beginning Fund Balance 68,243,537 68,243,537 68,243,537 68,243,537 Ending Fund Balance 52,885,230 14,924,748 18,245,280 62,607,475 Page "13
DRAFT 232 of 301
ATTACHMENT 4:

Capital Improvement Program (CIP) Expenditure Summary
DRAFT 233 of 301
City of Goleta
Capital Improvement Program (CIP) Expenditure Summary
For the Quarter Ended June 30, 2023
Attachment 4
Project No. & Description Current Budget Activity Encumbrances Remaining Budget
9001 Hollister Avenue Redesign $ 602,931 $ - $ - $ 602,931 9002 Ekwill Street & Fowler Extension $ 21,435,786 $1,203,215 $ - $ 20,232,571 9006 Capital Improvement Projects - Neighborhood Srvs $ 7,039,685 $1,487,927 $ - $ 5,551,759 9007 San Jose Creek Bike Path - Middle Segment $ 1,028,637 $ 189,901 $ - $ 838,736 9024 Ellwood Mesa $ 1,760 $ 213 $ - $ 1,547
9025 Fire Station No. 10 $ 5,836,318 $ 158,740 $ - $ 5,677,578 9027 101 Overpass $ 1,182,914 $ 7,547 $ - $ 1,175,367
9031 Old Town Sidewalk Improvement $ 392,706 $ - $ - $ 392,706 9033 Hollister Avenue Bridge Replacement (SJC Phase II) $ 18,550,290 $ 766,434 $ - $ 17,783,856 9042 Storke Road Widening Phelps Road to City Limits $ 383,716 $ - $ - $ 383,716 9044 Hollister Widen Storke to 280 Ft W of S Glen Annie $ 940,951 $ - $ - $ 940,951 9045 Los Carneros Rd Interchange SB 101 Onramp $ 8,885 $ - $ - $ 8,885 9053 Cathedral Oaks Cribwall Interim Repair $ 7,303,158 $ 60,220 $ - $ 7,242,938 9056 LED Street Lighting Project $ 196,159 $ 106,152 $ - $ 90,007 9058 Hollister Avenue Crosswalk Enhancement-Chapel Str 92,787 $ -$ $ - $ 92,787 9062 Storke Road Medians $ 746,247 $ 124,894 $ - $ 621,352 9063 Evergreen Park Restroom $ 258,506 $ - $ - $ 258,506 9065 Reclaimed Water Service to Bella Vista Park $ 204,141 $ - $ - $ 204,141 9066 Miscellaneous Park Improvements $ 35,731 $ 13,442 $ - $ 22,289 9067 Goleta Community Center Seismic Upgrades $ 7,963,988 $1,873,629 $ - $ 6,090,358 9069 Miscellaneous Facilities Improvements $ 10 $ - $ - $ 10 9070 Fairview Ave at Calle Real/101 Sidewalk Infil $ 24,001 $ - $ - $ 24,001 9071 Improvements to Athletic Field @ GCC $ 31,163 $ 3,245 $ - $ 27,918 9072 La Patera Road Overcrossing/Undercrossing $ 218,644 $ - $ - $ 218,644 9073 La Patera Rd Sidewalk Infill & Class II Bike Lanes $ 129,805 $ - $ - $ 129,805 9074 Stow Grove Park Master Plan & Renovation $ 887,825 $ 104,067 $ - $ 783,758 9078 Rancho La Patera Improvements $ 648,304 $ - $ - $ 648,304 9079 Goleta Train Depot & S. La Patera Improvements $ 10,495,840 $ 707,247 $ - $ 9,788,593 9080 Electrical Utility Undergrounding $ 9 $ - $ - $ 9
9083 Signal Upgrades $ 3,215,100 $ 216 $ - $ 3,214,884
9084 Community Garden $ 2,045,154 $ 197,630 $ - $ 1,847,524 9085 Old Town Goleta Drainage Study $ 200,000 $ - $ - $ 200,000 9086 Vision Zero Plan $ 10,000 $ - $ - $ 10,000
9087 Mid-Block Crossing on Calle Real/Encina (HAWK) $ 106,555 $ 38,058 $ - $ 68,497 9088 RRFB Improvements at School Crosswalks $ 127,608 $ 60,094 $ - $ 67,514 9089 Goleta Traffic Safety Study (GTSS) $ 49,895 $ 4,078 $ - $ 45,817 9093 San Miguel Park Improvements $ 245,000 $ - $ - $ 245,000 9094 Santa Barbara Shores Park Improvements $ 180,000 $ - $ - $ 180,000 9097 Fairview Corridor Study (Fowler to Calle Real) $ 140,100 $ - $ - $ 140,100 9098 Crosswalk at S. Kellogg Avenue $ 29,983 $ - $ - $ 29,983 9099 Crosswalk at Calle Real @ Fairview $ 799,616 $ 219,890 $ - $ 579,726 9100 Fairview Ave and Hollister Ave Roundabout $ 520,000 $ - $ - $ 520,000 9101 City Hall Purchase & Improvements $ 70,291 $ - $ - $ 70,291 9102 Storke Road Corridor Study $ 138,775 $ - $ - $ 138,775 9103 Citywide School Zone Signage & Striping Evaluation $ 19,950 $ - $ - $ 19,950 9104 Citywide Evaluation of Existing Traffic Signals $ 68,800 $ - $ - $ 68,800 9106 Phelps Ditch Flood Control Channel Trash Control $ 50,000 $ - $ - $ 50,000 9107 Old Town S Fairview Av High Flow Trash Capture D $ 350,000 $ 26,413 $ - $ 323,587 9108 Winchester II Park $ 59,641 $ - $ - $ 59,641
9110 Hollister Ave Class 1 Bike Path Lighting $ 679,615 $ 23,291 $ - $ 656,324 9111 Jonny D. Wallis Park Phase 2 - Splash Pad $ 2,311,722 $ 32,329 $ - $ 2,279,394 9112 Ellwood Mesa/Sperling Preserve Open Space Plan $ 3,324,124 $ 951,478 $ - $ 2,372,647 9113 Mathilda Park Improvements $ 511,981 $ 2,001 $ - $ 509,981 9114 Hollister Ave Old Town Interim Striping Project $ 700,761 $ 69,216 $ - $ 631,546 9115 Public Works Corp Yard Repairs $ 600,000 $ 29,679 $ - $ 570,321 9116 Pickleball Courts $ 100,000 $ - $ - $ 100,000
9117 San Jose Creek Channel Fish Passage Modification $ 1,264,347 $ 176,906 $ - $ 1,087,441 9118 Ellwood Coastal Trails & Habitat Restoration $ 283,500 $ 365 $ - $ 283,135 9119 Ellwood Beach Drive Drainage $ 193,000 $ 8,641 $ - $ 184,359 9120 Evergreen Park Drainage Repair $ 52,300 $ 3,328 $ - $ 48,972 9121 Goleta Community Center ADA Improvements $ 3,912,746 $ 146,671 $ - $ 3,766,075 9807 Goleta Prepare Now Grant $ 9,435 $ 8,916 $ - $ 519 9901 MIS/ERP System Implementation $ 349,272 $ - $ - $ 349,272 Grand Total $ 109,360,169 $8,806,071 $ - $ 100,554,098
DRAFT 234 of 301
ATTACHMENT 5:

Resolution Amending the City's Operating & CIP Budget for Fiscal Year 2022/23
DRAFT 235 of 301
Attachment 5

RESOLUTION NO. 23-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GOLETA, CALIFORNIA, AMENDING THE CITY OF GOLETA
OPERATING AND CIP BUDGET FOR FISCAL YEAR 2022/23.

WHEREAS, the City Council of the City of Goleta adopted the Operating Budget and Capital Improvement Program for Fiscal Year 2022/23 on June 21, 2022; and
WHEREAS, the City Manager has proposed a budget adjustment as described in the Council report dated June 6, 2023 for Fiscal Year 2022/23 based on the determination by the City Manager that this adjustment is essential to the City’s operations; and
WHEREAS, the City Council has reviewed the proposed budget adjustments for the Fourth Quarter Ended June 30, 2023 and does hereby find the recommendation to be necessary and in the City’s best interest; and WHEREAS, Section 2.1 of the City of Goleta Personnel Rules specifies that the Personnel Officer shall recommend and maintain a classification/compensation plan for all positions in the City service; and WHEREAS, on September 1, 2022, December 6, 2022, December 20, 2022, March 7, 2023, and June 6, 2023 the City Council adopted most recent said recommended authorized positions, salary schedule and appropriations for the City of Goleta Operating and CIP Budget for Fiscal Year 2022/23; and WHEREAS, the City Council has reviewed the proposed amended authorized positions, salary schedule and budget adjustments for Fiscal Year 2022/23 and does hereby find the recommendation to be necessary in the City’s best interest.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF GOLETA AS FOLLOWS:

SECTION 1.

The City of Goleta Operating and CIP Budget for Fiscal Year 2022/23 is hereby amended as follows as per Exhibit A to this resolution.

SECTION 2.

The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

DRAFT 236 of 301
Attachment 5

PASSED, APPROVED, AND ADOPTED this 19th day of September, 2023.

__________________________

PAULA PEROTTE, MAYOR
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________ DEBORAH S. LOPEZ MEGAN GARIBALDI

CITY CLERK CITY ATTORNEY
DRAFT 237 of 301
Attachment 5

STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )
I, DEBORAH S. LOPEZ, City Clerk of the City of Goleta, California, DO HEREBY CERTIFY that the foregoing Resolution No. 23-___ was duly adopted by the City Council of the City of Goleta at a regular meeting held on the 19th day of September, 2023, by the following vote of the Council:

AYES:

NOES:

ABSENT:
(SEAL)

_________________________
DEBORAH S. LOPEZ

CITY CLERK
DRAFT 238 of 301
Schedule of FY 2022/23
4th QTR Adjustments - Revenues
Exhibit A
Program/Project
Name Fund Proj Object Account Code Requests Account Name FY 2022/23
Current
Budget
FY 2022/23
Actuals
FY 2021/22
Budget
Balance
Type of
Request
FY 2022/23
Amended Budget
FY 2022/23
Adjusted
Budget
Balance
Ellwood Mesa/Sperling 322 9112 44400 322-90-9112-44400 75,000.00 Grant Proceeds - State 3,900,000.00 294,786.99 3,605,213.01 Transfer 3,975,000.00 3,680,213.01 Ellwood Coastal Trails & Habitat 322 9118 44400 322-90-9118-44400 (75,000.00) Grant Proceeds - State - 75,000.00 75,000.00 Transfer - - Total - $
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Schedule of FY 2022/23
4th QTR Adjustments - Expenditures
Exhibit A
Program/Project
Name Fund Department Program Subcategory Account Code
Appropriation/
Transfer
Requests
Account Name FY 2022/23 Current Budget FY 2022/23 Actuals FY 2022/23 Encumbrance FY 2022/23 Budget Balance Type of Request FY 2022/23 Amended Budget FY 2022/23 Adjusted Budget Balance Frequency Hollister Avenue Crosswalk EnhancementChapel Str 101 90 Capital Improvement 9058 Hollister Avenue Crosswalk Enhancement-Chapel Str
5707 Capital Project 101-90-9058-57071 (50,669.35) Construction 50,669.35 - - 50,669.35 Cleanup - - One-Time Goleta Valley Community Center 101 90 Capital Improvement 9067 Goleta Community Center Seismic Upgrades 5707 Capital Project 101-90-9067-57071 (1,000,000.00) Construction 3,775,208.00 507,708.40 - 3,267,499.60 Cleanup 2,775,208.00 2,267,499.60 One-TimeMiscellaneous Facilities Improvements 101 90 Capital Improvement 9069 Miscellaneous Facilities Improvements 5707 Capital Project 101-90-9069-57070 (7.62) Design 7.62 - - 7.62 Cleanup - - One-Time Miscellaneous Facilities Improvements
101 90 Capital Improvement 9069 Miscellaneous Facilities Improvements 5707 Capital Project 101-90-9069-57071 (2.39) Construction 2.39 - - 2.39 Cleanup - - One-Time Crosswalk at S. Kellogg Avenue 101 90 Capital Improvement 9098 Crosswalk at S. Kellogg Avenue 5707 Capital Project 101-90-9098-57070 (3.78) Design 3.78 - - 3.78 Cleanup - - One-Time Hollister Avenue Redesign 205 90 Capital Improvement 9001 Hollister Avenue Redesign 5707 Capital Project 205-90-9001-57070 (24,346.25) Design 24,346.25 - - 24,346.25 Transfer - - One-Time Old Town Sidewalk
Improvement 205 90 Capital Improvement 9031 Old Town Sidewalk Improvement 5701 Machinery & Equipment 205-90-9031-57010 (2,742.16) Machinery & Equipment 2,742.16 - 2,742.16 Cleanup - - One-Time - Old Town Sidewalk Improvement 205 90 Capital Improvement 9031 Old Town Sidewalk Improvement 5705 Land 205-90-9031-57050 (5,641.25) Land Acquisition 5,641.25 - 5,641.25 Cleanup - - One-Time - Old Town Sidewalk Improvement 205 90 Capital Improvement 9031 Old Town Sidewalk Improvement 5707 Capital Project 205-90-9031-57070 (60,708.70) Design 60,708.70 - 60,708.70 Cleanup - - One-Time -Old Town Sidewalk Improvement 205 90 Capital Improvement 9031 Old Town Sidewalk Improvement 5707 Capital Project 205-90-9031-57071 (237,212.93) Construction 237,212.93 - 237,212.93 Cleanup - - One-Time - Hollister Avenue Crosswalk EnhancementChapel Str 205 90 Capital Improvement 9058 Hollister Avenue Crosswalk Enhancement-Chapel Str
5707 Capital Project 205-90-9058-57071 (42,117.84) Construction 42,117.84 - 42,117.84 Cleanup - - One-Time - Fairview Ave at Calle Real/101 Sidewalk Infill
205 90 Capital Improvement 9070 Fairview Ave at Calle Real/101 Sidewalk Infill 5707 Capital Project 205-90-9070-57071 (18,325.97) Construction 18,325.97 - 18,325.97 Cleanup - - One-Time - Crosswalk at S. Kellogg Avenue 205 90 Capital Improvement 9098 Crosswalk at S. Kellogg Avenue 5707 Capital Project 205-90-9098-57071 (29,979.35) Construction 29,979.35 - 29,979.35 Cleanup - - One-Time - Storke Road Corridor Study 205 90 Capital Improvement 9102 Storke Road Corridor Study 5707 Capital Project 205-90-9102-57070 (54,000.00) Design 54,000.00 - - 54,000.00 Cleanup - One-Time - Citywide School Zone Signage & Striping Evaluation
205 90 Capital Improvement 9103 Citywide School Zone Signage & Striping Evaluation 5707 Capital Project 205-90-9103-57070 (19,950.00) Design 19,950.00 - 19,950.00 Cleanup - - One-Time - Hollister Ave Class
1 Bike Path
Lighting
205 90 Capital Improvement 9110 Hollister Ave Class 1 Bike Path Lighting 5707 Capital Project 205-90-9110-57071 24,346.25 Construction 218,328.00 - - 218,328.00 Transfer 242,674.25 242,674.25 One-Time Hollister Avenue Redesign 220 90 Capital Improvement 9001 Hollister Avenue Redesign 5707 Capital Project 220-90-9001-57070 (238,085.11) Design 238,085.11 - - 238,085.11 Transfer - - One-Time Ekwill Street & Fowler Extension 220 90 Capital Improvement 9002 Ekwill Street & Fowler Extension 5707 Capital Project 220-90-9002-57071 238,085.11 Construction 5,525,648.00 157,301.91 - 5,368,346.09 Transfer 5,763,733.11 5,606,431.20 One-Time 101 Overpass 220 90 Capital Improvement 9027 101 Overpass 5707 Capital Project 220-90-9027-57070 (1,127,564.26) Design 1,182,914.26 7,547.10 - 1,175,367.16 Cleanup 55,350.00 47,802.90 One-Time Old Town Sidewalk Improvement 220 90 Capital Improvement 9031 Old Town Sidewalk Improvement 5707 Capital Project 220-90-9031-57070 (1,950.51) Design 1,950.51 - - 1,950.51 Cleanup - - One-Time Old Town Sidewalk Improvement 220 90 Capital Improvement 9031 Old Town Sidewalk Improvement 5707 Capital Project 220-90-9031-57071 (59,205.38) Construction 59,205.38 - - 59,205.38 Cleanup - - One-Time Fairview Ave at Calle Real/101 Sidewalk Infill
220 90 Capital Improvement 9070 Fairview Ave at Calle Real/101 Sidewalk Infill 5707 Capital Project 220-90-9070-57070 (5,675.52) Design 5,675.52 - - 5,675.52 Cleanup - - One-Time Fairview Ave and Hollister Ave Roundabout
220 90 Capital Improvement 9100 Fairview Ave and Hollister Ave Roundabout 5707 Capital Project 220-90-9100-57070 (520,000.00) Design 520,000.00 - - 520,000.00 Cleanup - - One-Time Storke Road Corridor Study 220 90 Capital Improvement 9102 Storke Road Corridor Study 5707 Capital Project 220-90-9102-57070 (84,775.00) Design 84,775.00 - 84,775.00 Cleanup - - One-Time - Hollister Avenue Redesign 230 90 Capital Improvement 9001 Hollister Avenue Redesign 5707 Capital Project 230-90-9001-57070 (340,500.00) Design 340,500.00 - 340,500.00 Transfer - - One-Time - Ekwill Street & Fowler Extension 230 90 Capital Improvement 9002 Ekwill Street & Fowler Extension 5707 Capital Project 230-90-9002-57071 340,500.00 Construction 1,821,577.00 11,612.69 1,809,964.31 Transfer - 2,162,077.00 2,150,464.31 One-Time Ellwood Mesa/Sperling Preserve Open Space Plan
322 90 Capital Improvement 9112 Ellwood Mesa/Sperling Preserve Open Space Plan 5707 Capital Project 322-90-9112-57070 75,000.00 Design 1,734,106.49 951,477.78 782,628.71 Transfer - 1,809,106.49 857,628.71 One-Time Ellwood Coastal Trails & Habitat Restoration
322 90 Capital Improvement 9118 Ellwood Coastal Trails & Habitat Restoration 5707 Capital Project 322-90-9118-57070 (75,000.00) Design 75,000.00 365.00 74,635.00 Transfer - (365.00) One-Time - Ekwill Street & Fowler Extension 423 90 Capital Improvement 9002 Ekwill Street & Fowler Extension 5707 Capital Project 423-90-9002-57071 4,933,990.00 Construction - - - Transfer - 4,933,990.00 4,933,990.00 One-Time Cathedral Oaks Cribwall Interim Repair
423 90 Capital Improvement 9053 Cathedral Oaks Cribwall Interim Repair 5707 Capital Project 423-90-9053-57071 (4,933,990.00) Construction 4,933,990.00 - 4,933,990.00 Transfer - - One-Time - Total $ (3,320,532.01)
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ITEM IV:
241 of 301
Agenda Item X.x

CONSENT CALENDAR
Meeting Date: September 19, 2023
TO: Mayor and Councilmembers
FROM: Luke Rioux, Finance Director
SUBJECT: Acceptance of the June 2023 Investment Transaction Report RECOMMENDATION:

Accept the investment transaction report for the month of June 2023.

BACKGROUND:

Transmitted herewith is the investment transaction report for the month of June 2023.

The City Treasurer continues to monitor idle cash balances with the help of the accountants in the Finance Department, transferring cash between the checking and money market accounts daily, or as needed to maximize interest earnings. On a quarterly basis, staff submits a comprehensive report on the City’s portfolio and related activity pursuant to the City’s Investment Policy.

DISCUSSION:

Investment Transaction Report
As of June 30, 2023, the City‘s investment portfolio totaled $85,672,499.52. The City’s weighted average yield in June was 2.835%.

Attachment 1 contains the Investment Transaction Report, which includes the Investment Activity and Interest Report, Summary of Cash and Investments, and Investment Portfolio detail as of June 30, 2023.

Benchmark Comparisons
Figure 1 shows a 2-year interest rate trend chart which compares the City’s portfolio yield by quarter, compared to its benchmarks, the Local Agency Investment Fund (LAIF), and the 1- and 2-Year US Treasury Notes. These benchmarks serve as indicators of the City’s performance. Trends over time that substantially deviate from these benchmarks would warrant further analysis and review.

DRAFT 242 of 301
Figure 1
(Note: The most recent LAIF apportionment rate is displayed for benchmark purposes.) As of June 30, 2023, LAIF’s apportionment rate was at 3.15%, 1 Year US Treasury yield was at 5.40% and the 2 Year US Treasury yield was at 4.87%, compared to the City’s portfolio yield at 2.835%. By the end of the quarter Treasury yields were higher across the maturity terms of the yield curve. Since the prior quarter the 1 Year US Treasury yield has increased from 2.80% to 5.40% increasing by 260 basis points and the 2 Year US Treasury yield has increased from 2.92% to 4.87% increasing by 195 basis points.

The LAIF daily rate is trending above 3.167% at the time of preparing this report (06/30/2023).

In the current interest rate environment, the City’s interest earnings are forecasted to gradually increase. Short-term and liquid investments like local government investment pools and money market funds tend to follow the Federal Funds Rate very closely. The Fed will meet next on July 27, 2023.

The pooled cash report is included as Attachment 2. Balance Sheets for the General Fund and all Special Funds are included as well, as Attachment 3.

Investment Program Update
On November 15, 2022, the City Council adopted the updated Investment Policy and authorized the continued annual delegation of authority the Finance Director/City Treasurer to invest city funds in accordance with the Investment Policy. Since the start of the pandemic Finance
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staff has re-prioritized work efforts from further enhancing the 243 of 301
City’s investment program to focus on other competing critical items, such as transitioning processes to function electronically and implementing the City’s financial software system. In addition, workload capacity was strained with changes in staff and vacancies. As staffing levels begin to increase and workload capacity becomes available, staff will continue its work on the investment program to incorporate the other allowable investments into its overall portfolio, such as building out its laddering program. Staff anticipates this work effort to begin in July 2023.

Section 115 Trust Update
Staff is in process of drafting an ongoing funding strategy and investment policy for the Section 115 Trust. The City just received its June 30, 2022 Actuarial Valuation Report in March 2023 which has the current retiree health liabilities. Next steps will include reviewing the updated liability information once available and determining funding amounts for both other-post employee benefit (OPEB) retiree health liabilities and pension liabilities, and then going back to the Finance Committee for review and City Council for adoption of an ongoing funding strategy and policy.

FISCAL IMPACTS:

As of June 30, 2023, the investment portfolio is compliant with all State and Federal laws and the City’s Investment Policy. There are sufficient funds available to meet the City’s expenditure requirements for the next six months.

Reviewed by: Approved by:
_____________________ _____________________
Kristine Schmidt Robert Nisbet
Assistant City Manager City Manager

ATTACHMENTS:

1. Investment Transaction Report for June 30, 2023

2. Pooled Cash Report for the Quarter Ending June 30, 2023

3. Balance Sheets for the Quarter Ending June 30, 2023
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ATTACHMENT 1
Investment Transaction Report June 2023

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Attachment 1

INVESTMENT ACTIVITY INVESTMENT INCOME

PURCHASES OR DEPOSITS POOLED INVESTMENTS
6/20/23 PURCHASE 5YR CD - DORT FINANCIAL CREDIT UNION @ 4.5% $ Interest Earned on Investments 92,118.34 247,000.00 $ Total
Total 247,000.00 $

SALES, MATURITIES, CALLS OR WITHDRAWALS
Total $ -
ACTIVITY TOTAL $ INCOME TOTAL 92,118.3 247,000.00 $ 4
City of Goleta
Investment Activity and Interest Report
June 30, 2023
DRAFT 246 of 301
Attachment 1
ENDING BALANCE AS OF May 31, 2023
Account Description
Book
Value
Market
Value
Percent of
Portfolio
Weighted Yield to
Maturity
Average
Days to
Maturity
Checking Accounts $ 1,704,715.97 $ 1,704,715.97 2.025% 0.000% 1 Money Market Accounts 34,782,764.41 34,782,764.41 41.320% 2.822% 1 (1) Local Agency Investment Funds 41,591,100.97 42,231,821.09 50.169% 2.740% 1 (2) Certificates of Deposit 4,954,000.00 $ 4,668,862.51 5.885% 1.960% 1794 SUBTOTAL 83,673,301.47 82,747,443.86 99.406% 2.656% 106.513 Held by Fiscal Agent (US Bank - PARS) 503,500.00 473,462.60 $ 0.598% -5.600% 1 Held by Fiscal Agent (BNY Mellon) 2,900.00 $ 2,900.00 0.003% 0.000% 1 SUBTOTAL 476,362.60 506,400.00 0.5940% -0.033% 0.00602
Totals and Averages 84,179,701.47 83,223,806.46 100.000% 2.623% 106 Total Cash and Investments $ 84,179,701.47
NET CASH AND INVESTMENT ACTIVITY FOR JUNE 2023
$ 1,492,798.05
ENDING BALANCE AS OF JUNE 30, 2023
Account Description
Book
Value
Market
Value
Percent of
Portfolio
Weighted Yield to
Maturity
Average
Days to
Maturity
Checking Accounts $ 2,134,617.89 $ 2,134,617.89 2.492% 0.000% 1 Money Market Accounts (1) 35,598,660.54 35,598,660.54 41.552% 2.822% 1 Local Agency Investment Funds (2) 41,591,100.97 42,231,821.09 49.294% 3.150% 1 Certificates of Deposit 5,201,000.00 4,903,524.02 6.071% 2.081% 1797 SUBTOTAL 85,166,099.52 84,227,903.42 99.406% 2.852% 110.054 Held by Fiscal Agent (US Bank - PARS) 503,500.00 482,150.17 0.588% -0.940% 1 Held by Fiscal Agent (BNY Mellon) 2,900.00 $ 2,900.00 0.003% 0.000% 1 SUBTOTAL 485,050.1 506,400.00 7 0.5940% -0.006% 0.00591 Totals and Averages $ 85,672,499.52 $ 84,712,953.59 100.000% 2.835% 110 Total Cash and Investments $ 85,672,499.52
Notes:
(1)
(2)
City of Goleta
Summary of Cash and Investments
June 30, 2023
Community West Bank serves as the City's primary banking institution. Interest earnings are guaranteed at a minimum rate 0.7098% per banking agreement for the money market account. The rate may be adjusted to match the higher of the Pooled Money Investment Account (PMIA) or quarterly Local Agency Investment Fund (LAIF) apportionment rate. All deposits held are required to be fully collateralized by State law. The City has a written collateralization agreement with Community West Bank to ensure the safety of public funds and utilizes an irrevocable letter of credit through the Federa Home Loan Bank of San Francisco.

For reporting purposes the LAIF yield displayed is the apportionment rate available at the time of preparing this report. The apportionment rate is the actual interest earned from LAIF and is based on the prior three-month average of the PMIA effective yield, net of administrative costs. As of FY 17/18 the quarterly apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment loan pursuant to Government Code 20825 (c)(1) and in FY 18/19 interest earned on Wildfire Fund loan pursuant to Public Utility Code 3288 (a), which are not reflected in the PMIA monthly effective yield, due to the structure of the loan.

DRAFT 247 of 301
City of Goleta
Investment Portfolio
June 30, 2023
Attachment 1
PURCHASE MATURITY DAYS TO STATED YIELD AT FACE BOOK MARKET** DATE DATE MATURITY RATE 365 VALUE VALUE VALUE

CHECKING ACCOUNTS
COMMUNITY WEST BANK GENERAL CHKING ACCT - - 1 0 0.000% 1,065,543.80 1,065,543.80 1,065,543.80 COMMUNITY WEST BANK GENERAL REV ACCT 1 0 0.000% 969,379.52 969,379.52 969,379.52 COMMUNITY WEST BANK PAYROLL CHKING ACCT 1 0 0.000% 89.06 89.06 89.06 PERSHING - SAFE KEEPING ACCT 0 0.000% 99,605.51 99,605.51 99,605.51 Subtotal, Checking Accounts 0.000% 0.000% 2,134,617.89 $ $ 2,134,617.89 $ 2,134,617.89

MONEY MARKET ACCOUNTS
COMMUNITY WEST BANK MMA - - 2.8220% 2.8220% 35,598,660.54 1 35,598,660.54 35,598,660.54 Subtotal, MMA Account 2.8220% 2.8220% 35,598,660.54 1 $ $ 35,598,660.54 $ 35,598,660.54

LOCAL AGENCY INVESTMENT FUND
LOCAL AGENCY INVESTMENT FUND - - 3.150% 3.150% 42,231,821.09 1 42,231,821.09 41,591,100.97 Subtotal, LAIF 3.150% 3.150% 42,231,821.09 1 $ $ 42,231,821.09 $ 41,591,100.97 CERTIFICATES OF DEPOSITMEDALLION BK UTAH 8/5/2019 8/7/2023 1,463 2.100% 2.100% $249,000.00 $249,000.00 248,203.20 $ 58404DEV9CAPITAL ONE NA 8/7/2019 8/7/2024 1,827 2.250% 2.250% $247,000.00 $247,000.00 238,555.07 $ 14042RMU2 CAPITAL ONE BANK USA NA 8/7/2019 8/7/2024 1,827 2.250% 2.250% $247,000.00 $247,000.00 238,555.07 $ 14042TBQ9 ENERBANK USA 8/7/2019 8/7/2024 1,827 2.150% 2.150% $247,000.00 $247,000.00 238,295.72 $ 29278TKJ8 MORGAN STANLEY BANK NA 8/8/2019 8/8/2024 1,827 2.200% 2.200% $247,000.00 $247,000.00 238,404.40 $ 61690UJX9 MORGAN STANLEY PVT BANK 8/8/2019 8/8/2024 1,827 2.200% 2.200% $247,000.00 $247,000.00 238,404.40 $ 61760AS75 LIVE OAK BKG CO WILMINGTON NC 2/12/2020 8/12/2024 1,643 1.700% 1.700% $247,000.00 $247,000.00 236,919.93 $ 538036HY3WASHINGTON FEDERAL BK 8/23/2019 8/23/2024 1,827 2.050% 2.050% $249,000.00 $249,000.00 239,540.49 $ 938828BJ8 WELLS FARGO BK N A SIOUX FALLS S D 1/29/2020 1/29/2025 1,827 1.950% 1.950% $247,000.00 $247,000.00 233,928.76 $ 949763T30 RAYMOND JAMES BK NATL ASSN ST PETERSBURG 2/14/2020 2/14/2025 1,827 1.750% 1.750% $247,000.00 $247,000.00 232,987.69 $ 75472RBB6ENCORE BK LITTLE ROCK ARK CTF DEP 4/25/2020 3/25/2025 1,795 1.150% 1.150% $249,000.00 $249,000.00 231,353.37 $ 29260MAV7POPPY BK SANTA ROSA CA CTF DEP 4/27/2020 3/27/2025 1,795 1.100% 1.100% $249,000.00 $249,000.00 231,096.90 $ 73319FAK5 AMERICAN EXPRESS NATL BK BROKERED INTL CTF3/31/2020 3/31/2025 1,826 1.550% 1.550% $248,000.00 $248,000.00 232,063.52 $ 02589AB68 PACIFIC ENTERPRISE BK IRVINE CA CTF DEP 3/31/2020 3/31/2025 1,826 1.150% 1.150% $249,000.00 $249,000.00 231,196.50 $ 694231AC5STATE BK INDIA NEW YORK NY CTF DEP 4/29/2020 4/29/2025 1,826 1.600% 1.600% $248,000.00 $248,000.00 231,602.24 $ 856285TF8 ALLY BK SANDY UTAH CRF ACT/365 6/2/2022 6/2/2027 1,826 3.100% 3.100% $249,000.00 $249,000.00 233,649.15 $ 02007GSH7TOYOTA FINANCIAL SAVINGS BANK HEND NV 10/14/2021 10/14/2026 1,826 1.050% 1.050% $247,000.00 $247,000.00 215,119.71 $ 89235MLU3UBS BANK USA SALT LAKE CITY UT 10/27/2021 10/27/2026 1,826 1.050% 1.050% $249,000.00 $249,000.00 216,283.89 $ 90348JV56DISCOVER BK GREENWOOD DEL 6/1/2022 6/1/2027 1,826 3.200% 3.200% $245,000.00 $245,000.00 226,747.50 $ 254673F76 FIRST TECHNOLOGY FED CREDIT UNION #19976 8/5/2022 8/5/2027 1,826 3.650% 3.650% $247,000.00 $247,000.00 231,905.83 $ 33715LEB2DORT FINANCIAL CREDIT UNION 6/20/2023 6/20/2028 1,827 4.500% 4.500% $247,000.00 $247,000.00 238,710.68 $ 25844MBB3 Subtotal, Certificates of Deposit 1,797 2.081% 2.081% 5,201,000.00 $ $ 5,201,000.00 $ 4,903,524.02Total $ 85,166,099.52 $ 85,166,099.52 $ 84,227,903.42 Held By Fiscal Agent (US Bank - PARS)

PUBLIC AGENCY RETIREMENT SERVICES (PARS) -
OPEB - Moderate Index Plus 2/4/2022 -0.940% 1 $ 333,500.00 333,500.00 $ 319,358.63 $ PUBLIC AGENCY RETIREMENT SERVICES (PARS) -PENSION - Moderate Index Plus 2/4/2022 -0.940% 1 $ 170,000.00 170,000.00 $ 162,791.54 $ Subtotal -0.940% 503,500.00 1 $ 503,500.00 $ 482,150.17 $ Total $ 503,500.00 503,500.00 $ 482,150.17 $
Held By Fiscal Agent (BNY Mellon)
Holding Account 2,900.00 1 $ 2,900.00 $ 2,900.00 $
Total $ 2,900.00 2,900.00 $ 2,900.00 $
Grand Total $ 85,672,499.52 85,672,499.52 $ 84,712,953.59 $ Notes:
* Comments for Certificates of Deposit represent the CUSIP Number (Committee on Uniform Securities Identification Procedures). * *Market Value on Certificates of Deposit have been obtained from the City's safekeeping agent, Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation. Market value disclosure is for informational purposes only.

City policy is to hold all investments to maturity; therefore, any unrealized gain or loss reflected between the book value and market value of an investment will not be realized. **Market Value on U.S. Bank, Trustee for PARS: Account balances are inclusive of Trust Administration, Trustee and Investment Management fees.

DESCRIPTION COMMENTS *
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ATTACHMENT 2:

Pooled Cash Report for the Quarter Ending June 30, 2023 DRAFT 249 of 301
TYLERHOST\SYSTEM 9.05.2023 Page 1 of 7
Pooled Cash Report
City of Goleta, CA
For the Period Ending 6/30/2023
ACCOUNT # ACCOUNT NAME

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT

BALANCE

CLAIM ON CASH
101-1010.000 Claim on Cash 40,558,289.41 1,737,642.62 42,295,932.03 102-1010.000 Claim on Cash 0.00 0.00 0.00
201-1010.000 Claim on Cash 1,652,415.77 74,154.00 1,726,569.77 202-1010.000 Claim on Cash 248,395.87 3,540.92 251,936.79 203-1010.000 Claim on Cash 948,397.69 67,374.22 1,015,771.91 205-1010.000 Claim on Cash 5,746,407.71 110,594.62 5,857,002.33 206-1010.000 Claim on Cash (626,001.21) (59,911.98) (685,913.19) 207-1010.000 Claim on Cash 0.00 0.00 0.00
208-1010.000 Claim on Cash 299,810.86 (38,507.63) 261,303.23 209-1010.000 Claim on Cash 231,045.53 (6,536.23) 224,509.30 210-1010.000 Claim on Cash 202,243.45 (7,383.75) 194,859.70 211-1010.000 Claim on Cash 1,666,000.25 (48,959.48) 1,617,040.77 212-1010.000 Claim on Cash 11,747.71 0.00 11,747.71
213-1010.000 Claim on Cash 47,494.86 (14,828.83) 32,666.03 214-1010.000 Claim on Cash 17,838.80 (19,758.88) (1,920.08) 215-1010.000 Claim on Cash 0.00 (2,705.14) (2,705.14)
217-1010.000 Claim on Cash (121,293.34) 41,567.92 (79,725.42) 220-1010.000 Claim on Cash 10,805,694.52 (67,605.91) 10,738,088.61 221-1010.000 Claim on Cash 8,585,998.48 (18,472.64) 8,567,525.84 222-1010.000 Claim on Cash (2,408.61) 0.00 (2,408.61)
223-1010.000 Claim on Cash 208,884.09 (12,282.27) 196,601.82 224-1010.000 Claim on Cash 143,286.17 156.45 143,442.62 225-1010.000 Claim on Cash 1,283,907.74 (23,625.41) 1,260,282.33 226-1010.000 Claim on Cash 175,845.40 192.00 176,037.40 227-1010.000 Claim on Cash 0.00 0.00 0.00
228-1010.000 Claim on Cash 0.00 0.00 0.00
229-1010.000 Claim on Cash 3,473,648.18 3,337.35 3,476,985.53 230-1010.000 Claim on Cash 56,428.89 0.00 56,428.89
231-1010.000 Claim on Cash 615,163.38 0.00 615,163.38
232-1010.000 Claim on Cash (274,434.68) (2,640.00) (277,074.68) 233-1010.000 Claim on Cash 128,210.41 0.00 128,210.41
234-1010.000 Claim on Cash 545,750.89 (25,610.63) 520,140.26 235-1010.000 Claim on Cash 225,772.92 246.52 226,019.44 236-1010.000 Claim on Cash 38,950.81 (3,128.00) 35,822.81 237-1010.000 Claim on Cash (60,778.05) 0.00 (60,778.05) 238-1010.000 Claim on Cash 6,397.57 6.99 6,404.56
301-1010.000 Claim on Cash 0.00 0.00 0.00
302-1010.000 Claim on Cash (0.03) 0.00 (0.03)
303-1010.000 Claim on Cash 0.00 0.00 0.00
304-1010.000 Claim on Cash 69,827.17 (2,177.38) 67,649.79 305-1010.000 Claim on Cash (420,350.11) 0.00 (420,350.11) 306-1010.000 Claim on Cash (220,140.09) 0.00 (220,140.09) 307-1010.000 Claim on Cash 0.00 0.00 0.00
308-1010.000 Claim on Cash (25,573.24) (2,271.47) (27,844.71) 309-1010.000 Claim on Cash 0.00 0.00 0.00
310-1010.000 Claim on Cash 0.00 0.00 0.00
311-1010.000 Claim on Cash (8,749.56) 220,365.95 211,616.39 312-1010.000 Claim on Cash 0.00 0.00 0.00
313-1010.000 Claim on Cash 0.00 0.00 0.00
314-1010.000 Claim on Cash 0.00 0.00 0.00
315-1010.000 Claim on Cash 0.00 0.00 0.00
317-1010.000 Claim on Cash (53,481.99) 0.00 (53,481.99) 318-1010.000 Claim on Cash (14,755.20) 0.00 (14,755.20) Attachment 2 DRAFT 250 of 301
ACCOUNT # ACCOUNT NAME

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT

BALANCE
TYLERHOST\SYSTEM 9.05.2023 Page 2 of 7
319-1010.000 Claim on Cash (136,272.25) 150.00 (136,122.25) 320-1010.000 Claim on Cash 14,231.00 0.00 14,231.00
321-1010.000 Claim on Cash (276,844.21) 0.00 (276,844.21) 322-1010.000 Claim on Cash (1,135,278.71) (365.00) (1,135,643.71) 323-1010.000 Claim on Cash 5,520.86 0.00 5,520.86
324-1010.000 Claim on Cash 0.00 0.00 0.00
325-1010.000 Claim on Cash (23,068.75) (6,121.75) (29,190.50) 401-1010.000 Claim on Cash (308,716.43) 227,826.34 (80,890.09) 402-1010.000 Claim on Cash (35,254.70) 34,066.06 (1,188.64) 403-1010.000 Claim on Cash 0.00 0.00 0.00
404-1010.000 Claim on Cash 0.00 0.00 0.00
405-1010.000 Claim on Cash 0.00 0.00 0.00
406-1010.000 Claim on Cash 0.00 0.00 0.00
407-1010.000 Claim on Cash 0.00 0.00 0.00
408-1010.000 Claim on Cash 0.00 0.00 0.00
409-1010.000 Claim on Cash (3,972.01) 0.00 (3,972.01)
410-1010.000 Claim on Cash 0.00 0.00 0.00
411-1010.000 ClaIm on Cash 0.00 0.00 0.00
412-1010.000 Claim on Cash 0.00 0.00 0.00
413-1010.000 Claim on Cash 0.00 0.00 0.00
414-1010.000 Claim on Cash 0.00 0.00 0.00
415-1010.000 Claim on Cash 0.00 0.00 0.00
416-1010.000 Claim on Cash 0.00 0.00 0.00
417-1010.000 Claim on Cash 5,636.00 0.00 5,636.00
418-1010.000 Claim on Cash 0.00 0.00 0.00
419-1010.000 Claim on Cash 0.00 0.00 0.00
420-1010.000 Claim on Cash 58,107.00 0.00 58,107.00
421-1010.000 Claim on Cash (21,757.56) (8,870.00) (30,627.56) 422-1010.000 Claim on Cash 0.00 0.00 0.00
423-1010.000 Claim on Cash 5,183,990.00 0.00 5,183,990.00 424-1010.000 Claim on Cash 0.00 0.00 0.00
501-1010.000 Claim on Cash 723,862.13 (30,135.20) 693,726.93 502-1010.000 Claim on Cash 288,897.15 (12,458.24) 276,438.91 503-1010.000 Claim on Cash 225,696.58 246.44 225,943.02 504-1010.000 Claim on Cash 35,495.44 499.26 35,994.70
605-1010.000 Claim on Cash 743,589.47 144,350.48 887,939.95 606-1010.000 Claim on Cash 0.00 0.00 0.00
607-1010.000 Claim on Cash 0.00 0.00 0.00
608-1010.000 Claim on Cash 0.00 0.00 0.00
701-1010.000 Claim on Cash 151,704.75 165.65 151,870.40 702-1010.000 Claim on Cash 0.00 0.00 0.00
703-1010.000 Claim on Cash 0.00 0.00 0.00
801-1010.000 Claim on Cash 605,470.84 (63,601.76) 541,869.08 TOTAL CLAIM ON CASH 82,266,925.02 2,188,526.21 84,455,451.23

CASH IN BANK
Cash in Bank
999-1010.000 Cash 0.00 0.00 0.00
999-1011.000 Payroll Cash 0.00 0.00 0.00
999-1012.000 Community West Cash Account (41,424.72) 392,506.35 351,081.63 999-1013.000 CWB Revenue Cash Account 4,259.19 969,023.27 973,282.46 999-1080.000 LAIF 42,231,821.09 0.00 42,231,821.09
999-1082.000 Money Market-Community West 34,782,764.41 815,896.13 35,598,660.54 999-1083.000 Pershing Investments 4,954,000.00 247,000.00 5,201,000.00 999-1083.001 Pershing Sweep Cash Account 335,505.05 (235,899.54) 99,605.51 999-1083.002 Pershing Investment-Unrealized Gain/Loss 0.00 0.00 0.00 TOTAL: Cash in Bank 82,266,925.02 2,188,526.21 84,455,451.23 TOTAL CASH IN BANK 82,266,925.02 2,188,526.21 84,455,451.23 Attachment 2 DRAFT 251 of 301
ACCOUNT # ACCOUNT NAME

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT

BALANCE
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DUE TO OTHER FUNDS
999-2070.000 Due to Other Funds 82,266,925.02 2,188,526.21 84,455,451.23 TOTAL DUE TO OTHER FUNDS 82,266,925.02 2,188,526.21 84,455,451.23 84,455,451.23
84,455,451.23 84,455,451.23
Claim on Cash
Cash in Bank Due To Other Funds
Difference 0.00
84,455,451.23

0.00 84,455,451.23
84,455,451.23

0.00 Due To Other Funds
Difference Difference
Claim on Cash Cash in Bank
Attachment 2 DRAFT 252 of 301
ACCOUNT # ACCOUNT NAME

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT

BALANCE
TYLERHOST\SYSTEM 9.05.2023 Page 4 of 7

ACCOUNTS PAYABLE PENDING
101-2020.000 Accounts Payable 1,769.06 2,519,971.73 2,521,740.79 102-2020.000 Accounts Payable 0.00 0.00 0.00
201-2020.000 Accounts Payable 0.00 572,371.63 572,371.63 202-2020.000 Accounts Payable 0.00 0.00 0.00
203-2020.000 Accounts Payable 0.00 381,581.08 381,581.08 205-2020.000 Accounts Payable 0.00 300,605.70 300,605.70 206-2020.000 Accounts Payable 0.00 36,867.01 36,867.01
207-2020.000 Accounts Payable 0.00 0.00 0.00
208-2020.000 Accounts Payable 0.00 1,113.80 1,113.80
209-2020.000 Accounts Payable 0.00 12,451.66 12,451.66
210-2020.000 Accounts Payable 0.00 11,562.23 11,562.23
211-2020.000 Accounts Payable 19,283.75 109,845.37 129,129.12 212-2020.000 Accounts Payable 0.00 0.00 0.00
213-2020.000 Accounts Payable 0.00 0.00 0.00
214-2020.000 Accounts Payable 0.00 0.00 0.00
215-2020.000 Accounts Payable 0.00 0.00 0.00
217-2020.000 Accounts Payable 0.00 10,274.52 10,274.52
220-2020.000 Accounts Payable 0.00 1,676,446.63 1,676,446.63 221-2020.000 Accounts Payable 0.00 94,004.73 94,004.73
222-2020.000 Accounts Payable 0.00 0.00 0.00
223-2020.000 Accounts Payable 0.00 27,376.65 27,376.65
224-2020.000 Accounts Payable 0.00 0.00 0.00
225-2020.000 Accounts Payable 0.00 0.00 0.00
226-2020.000 Accounts Payable 0.00 0.00 0.00
227-2020.000 Accounts Payable 0.00 0.00 0.00
228-2020.000 Accounts Payable 0.00 0.00 0.00
229-2020.000 Accounts Payable 0.00 0.00 0.00
230-2020.000 Accounts Payable 0.00 11,612.69 11,612.69
231-2020.000 Accounts Payable 0.00 0.00 0.00
232-2020.000 Accounts Payable 0.00 0.00 0.00
233-2020.000 Accounts Payable 0.00 0.00 0.00
234-2020.000 Accounts Payable 0.00 235.00 235.00
235-2020.000 Accounts Payable 0.00 0.00 0.00
236-2020.000 Accounts Payable 0.00 1,000.00 1,000.00
237-2020.000 Accounts Payable 0.00 0.00 0.00
238-2020.000 Accounts Payable 0.00 0.00 0.00
301-2020.000 Accounts Payable 0.00 0.00 0.00
302-2020.000 Accounts Payable 0.00 0.00 0.00
303-2020.000 Accounts Payable 0.00 0.00 0.00
304-2020.000 Accounts Payable 0.00 0.00 0.00
305-2020.000 Accounts Payable 0.00 0.00 0.00
306-2020.000 Accounts Payable 0.00 0.00 0.00
307-2020.000 Accounts Payable 0.00 0.00 0.00
308-2020.000 Accounts Payable 0.00 0.00 0.00
309-2020.000 Accounts Payable 0.00 0.00 0.00
310-2020.000 Accounts Payable 0.00 0.00 0.00
311-2020.000 Accounts Payable 0.00 0.00 0.00
312-2020.000 Accounts Payable 0.00 0.00 0.00
313-2020.000 Accounts Payable 0.00 0.00 0.00
314-2020.000 Accounts Payable 0.00 0.00 0.00
315-2020.000 Accounts Payable 0.00 0.00 0.00
317-2020.000 Accounts Payable 0.00 0.00 0.00
318-2020.000 Accounts Payable 0.00 0.00 0.00
319-2020.000 Accounts Payable 0.00 2,250.00 2,250.00
320-2020.000 Accounts Payable 0.00 0.00 0.00
321-2020.000 Accounts Payable 0.00 61,267.85 61,267.85
322-2020.000 Accounts Payable 0.00 71,453.75 71,453.75
323-2020.000 Accounts Payable 0.00 0.00 0.00
324-2020.000 Accounts Payable 0.00 0.00 0.00
325-2020.000 Accounts Payable 0.00 160.64 160.64
Attachment 2 DRAFT 253 of 301
ACCOUNT # ACCOUNT NAME

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT

BALANCE
TYLERHOST\SYSTEM 9.05.2023 Page 5 of 7
401-2020.000 Accounts Payable 0.00 392,145.28 392,145.28 402-2020.000 Accounts Payable 0.00 18,585.18 18,585.18
403-2020.000 Accounts Payable 0.00 0.00 0.00
404-2020.000 Accounts Payable 0.00 0.00 0.00
405-2020.000 Accounts Payable 0.00 0.00 0.00
406-2020.000 Accounts Payable 0.00 0.00 0.00
407-2020.000 Accounts Payable 0.00 0.00 0.00
408-2020.000 Accounts Payable 0.00 0.00 0.00
409-2020.000 Accounts Payable 0.00 0.00 0.00
410-2020.000 Accounts Payable 0.00 0.00 0.00
411-2020.000 Accounts Payable 0.00 0.00 0.00
412-2020.000 Accounts Payable 0.00 0.00 0.00
413-2020.000 Accounts Payable 0.00 0.00 0.00
414-2020.000 Accounts Payable 0.00 0.00 0.00
415-2020.000 Accounts Payable 0.00 0.00 0.00
416-2020.000 Accounts Payable 0.00 0.00 0.00
417-2020.000 Accounts Payable 0.00 0.00 0.00
418-2020.000 Accounts Payable 0.00 0.00 0.00
419-2020.000 Accounts Payable 0.00 0.00 0.00
420-2020.000 Accounts Payable 0.00 0.00 0.00
421-2020.000 Accounts Payable 0.00 22,483.00 22,483.00
422-2020.000 Accounts Payable 0.00 0.00 0.00
423-2020.000 Accounts Payable 0.00 75,000.00 75,000.00
424-2020.000 Accounts Payable 0.00 0.00 0.00
501-2020.000 Accounts Payable 0.00 6,100.47 6,100.47
502-2020.000 Accounts Payable 0.00 4,027.88 4,027.88
503-2020.000 Accounts Payable 0.00 0.00 0.00
504-2020.000 Accounts Payable 0.00 0.00 0.00
605-2020.000 Accounts Payable 0.00 0.00 0.00
606-2020.000 Accounts Payable 0.00 0.00 0.00
607-2020.000 Accounts Payable 0.00 0.00 0.00
608-2020.000 Accounts Payable 0.00 0.00 0.00
701-2020.000 Accounts Payable 0.00 0.00 0.00
702-2020.000 Accounts Payable 0.00 0.00 0.00
703-2020.000 Accounts Payable 0.00 0.00 0.00
801-2020.000 Accounts Payable 5,762.50 120,942.06 126,704.56 TOTAL ACCOUNTS PAYABLE PENDING 26,815.31 6,541,736.54 6,568,551.85

DUE FROM OTHER FUNDS
999-1310.101 Due from General Fund (1,769.06) (2,519,971.73) (2,521,740.79) 999-1310.102 Due from General Fund Reserves 0.00 0.00 0.00 999-1310.198 Due from Vehicle Replace 0.00 0.00 0.00
999-1310.199 Due from City Debt Service Fnd 0.00 0.00 0.00 999-1310.201 Due from Gas Tax 0.00 (572,371.63) (572,371.63) 999-1310.202 Due from Transportation 0.00 0.00 0.00
999-1310.203 Due from Road Maint Rehab Acct 0.00 (381,581.08) (381,581.08) 999-1310.205 Due from Measure D 0.00 (300,605.70) (300,605.70) 999-1310.206 Due from Measure A - Other 0.00 (36,867.01) (36,867.01) 999-1310.207 Due from Meas A SBCAG Light Ra 0.00 0.00 0.00 999-1310.208 Due from County Per Capita 0.00 (1,113.80) (1,113.80) 999-1310.209 Due from County Per Capita 0.00 (12,451.66) (12,451.66) 999-1310.210 Due from County Per Capita 0.00 (11,562.23) (11,562.23) 999-1310.211 Due from Solid Waste Fund (19,283.75) (109,845.37) (129,129.12) 999-1310.212 Due from Pub. Safety Donations 0.00 0.00 0.00 999-1310.213 Due from Buellton Library 0.00 0.00 0.00
999-1310.214 Due from Solvang Library 0.00 0.00 0.00
999-1310.215 Due from Library Fund 0.00 0.00 0.00
999-1310.216 Due from Library Book Van 0.00 0.00 0.00
999-1310.217 Due from Goleta Community Center 0.00 (10,274.52) (10,274.52) 999-1310.220 Due from GTIP 0.00 (1,676,446.63) (1,676,446.63) 999-1310.221 Due from Park Development Fees 0.00 (94,004.73) (94,004.73) Attachment 2 DRAFT 254 of 301
ACCOUNT # ACCOUNT NAME

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT

BALANCE
TYLERHOST\SYSTEM 9.05.2023 Page 6 of 7
999-1310.222 Due from Devel. Impact Fees 0.00 0.00 0.00 999-1310.223 Due from Library Facilities DI 0.00 (27,376.65) (27,376.65) 999-1310.224 Due from Sherrif Facilities DI 0.00 0.00 0.00 999-1310.225 Due from Housing In-Lieu Fund 0.00 0.00 0.00 999-1310.226 Due from Environmental Program 0.00 0.00 0.00 999-1310.227 Due from Mangement Habitat 0.00 0.00 0.00
999-1310.228 Due from Housing In-Lieu-RDA 0.00 0.00 0.00 999-1310.229 Due from Fire DIF Fund 0.00 0.00 0.00
999-1310.230 Due from LRDP 0.00 (11,612.69) (11,612.69) 999-1310.231 Due from Developer Agreement 0.00 0.00 0.00 999-1310.232 Due from County Fire DIF 0.00 0.00 0.00
999-1310.233 Due from OBF - SCE 0.00 0.00 0.00
999-1310.234 Due from Storm Drain DIF 0.00 (235.00) (235.00) 999-1310.235 Due from Bicycle & Ped DIF 0.00 0.00 0.00
999-1310.236 Due from Other Funds Misc. Grt 0.00 (1,000.00) (1,000.00) 999-1310.237 Due from Local Grants 0.00 0.00 0.00
999-1310.238 Due from Non-Residential Affordable Housing DIF 0.00 0.00 0.00 999-1310.247 Due From Citywide CIP Fund 0.00 0.00 0.00
999-1310.301 Due from State Park Fund 0.00 0.00 0.00
999-1310.302 Due from Public Safety 0.00 0.00 0.00
999-1310.303 Due from OTS Grant 0.00 0.00 0.00
999-1310.304 Due from Solid Waste Grant 0.00 0.00 0.00
999-1310.305 Due from RSTP - State Grant 0.00 0.00 0.00 999-1310.306 Due from LSTP 0.00 0.00 0.00
999-1310.307 Due from Environmental Justice 0.00 0.00 0.00 999-1310.308 Due from STIP 0.00 0.00 0.00
999-1310.309 Due from LSR - STATE GRANT 0.00 0.00 0.00
999-1310.310 Due From Cal Fire Grant 0.00 0.00 0.00
999-1310.311 Due from Other Funds Misc. Grt 0.00 0.00 0.00 999-1310.312 Due from Other Funds SLPP 0.00 0.00 0.00
999-1310.313 Due From Other Prop84 0.00 0.00 0.00
999-1310.314 Due from Strategic Growh Counc 0.00 0.00 0.00 999-1310.315 Due from State Water Grant 0.00 0.00 0.00
999-1310.317 Due from SSARP Grant 0.00 0.00 0.00
999-1310.318 Due from ATP-State 0.00 0.00 0.00
999-1310.319 Due from Housing&Community Dev 0.00 (2,250.00) (2,250.00) 999-1310.320 Due from Cal-OES 0.00 0.00 0.00
999-1310.321 Due from TIRCP 0.00 (61,267.85) (61,267.85) 999-1310.322 Due from MBHMP 0.00 (71,453.75) (71,453.75) 999-1310.323 Due from CALOES 0.00 0.00 0.00
999-1310.324 Due from Planning Grants Program PGP 0.00 0.00 0.00 999-1310.325 Due from Isla Vista Grant 0.00 (160.64) (160.64) 999-1310.401 Due from ISTEA 0.00 (392,145.28) (392,145.28) 999-1310.402 Due from CDBG 0.00 (18,585.18) (18,585.18) 999-1310.403 Due from Capital Improvement 0.00 0.00 0.00 999-1310.404 Due from STIP 0.00 0.00 0.00
999-1310.405 Due from LSTP 0.00 0.00 0.00
999-1310.406 Due from RSTP-Fed Grant 0.00 0.00 0.00
999-1310.407 Due from TCSP 0.00 0.00 0.00
999-1310.408 Due from EPA Grant 0.00 0.00 0.00
999-1310.409 Due from Public Safety Fund 0.00 0.00 0.00 999-1310.410 Due from STE 0.00 0.00 0.00
999-1310.411 Due from FEMA 0.00 0.00 0.00
999-1310.412 Due from Winter Storm Prep 0.00 0.00 0.00
999-1310.413 Due from 0.00 0.00 0.00
999-1310.414 DUE FROM EECBG 0.00 0.00 0.00
999-1310.415 Due from Fish Restoration 0.00 0.00 0.00
999-1310.416 Due from BPMP 0.00 0.00 0.00
999-1310.417 Due from HSIP 0.00 0.00 0.00
999-1310.418 Due from ATP-Federal 0.00 0.00 0.00
999-1310.419 Due from TIGER 0.00 0.00 0.00
Attachment 2 DRAFT 255 of 301
ACCOUNT # ACCOUNT NAME

BEGINNING

BALANCE

CURRENT

ACTIVITY

CURRENT

BALANCE
TYLERHOST\SYSTEM 9.05.2023 Page 7 of 7
999-1310.420 Due from FHWA - FEBA Reimb 0.00 0.00 0.00
999-1310.421 Due from HMGP Hazard Mit Grant 0.00 (22,483.00) (22,483.00) 999-1310.422 Due from CARES 0.00 0.00 0.00
999-1310.423 Due From State & Local Fiscal Recovery Fund 0.00 (75,000.00) (75,000.00) 999-1310.424 Due from Community Project Funding 0.00 0.00 0.00 999-1310.501 Due from Library Fund 0.00 (6,100.47) (6,100.47) 999-1310.502 Due from St Light Assessmnt 0.00 (4,027.88) (4,027.88) 999-1310.503 Due from PEG 0.00 0.00 0.00
999-1310.504 Due from CASp 0.00 0.00 0.00
999-1310.601 Due from RDA Project 0.00 0.00 0.00
999-1310.602 Due from RDA Housing 0.00 0.00 0.00
999-1310.603 Due from RDA Debt Service 0.00 0.00 0.00
999-1310.604 Due from RDA Bond Proceeds 0.00 0.00 0.00
999-1310.605 Due from RDA Successor Agency 0.00 0.00 0.00 999-1310.606 Due from LMI Successor Agency 0.00 0.00 0.00 999-1310.607 DUE FROM SUCCESSOR DBT SVC 0.00 0.00 0.00
999-1310.608 Due from IBank 0.00 0.00 0.00
999-1310.701 Due from Comstock Plover Endow 0.00 0.00 0.00 999-1310.702 Due from Section 115 Trust - Pension 0.00 0.00 0.00 999-1310.703 Due from Section 115 Trust - OPEB 0.00 0.00 0.00 999-1310.801 Due from Developer Deposit Fund (5,762.50) (120,942.06) (126,704.56) TOTAL DUE FROM OTHER FUNDS (26,815.31) (6,541,736.54) (6,568,551.85)

ACCOUNTS PAYABLE
999-2020.000 Accounts Payable-Control 26,815.31 6,541,736.54 6,568,551.85 TOTAL ACCOUNTS PAYABLE 26,815.31 6,541,736.54 6,568,551.85 6,568,551.85
6,568,551.85 6,568,551.85
AP Pending
Due From Other Funds Accounts Payable
Difference 0.00 0.00
6,568,551.85
6,568,551.85

0.00 Accounts Payable
Difference Difference
AP Pending 6,568,551.85 Due From Other Funds
Attachment 2 DRAFT 256 of 301
ATTACHMENT 3:

Balance Sheets for the Quarter Ending March 31, 2023
DRAFT 257 of 301
City of Goleta
Balance Sheet (Unaudited)
For the Quarter Ending June 30, 2023
Attachment 3
General Fund Gas Tax Measure A County Per
Capita ‐ Goleta
County Per
Capita ‐
Buellton
101 201 205 208 209
ASSETS
Cash & Investments
Claim on Cash          42,295,932         1,726,570         5,857,002            261,303            224,509 Petty Cash                    1,150 ‐                     ‐                     ‐                     ‐ Bond Discount                        ‐ ‐                     ‐                     ‐                     ‐ Cash with Fiscal Agent                        ‐ ‐                     ‐                     ‐                     ‐ Investments
Unrealized Gain/Loss on Invest              (519,117)             (19,180)             (65,064)                (2,901)                (2,494) Receivables                        ‐ ‐                     ‐                     ‐                     ‐ Accounts            3,395,962               70,948            168,203 ‐                     ‐ RDA Settlement Receivable                        ‐ ‐                     ‐                     ‐                     ‐ Interest                176,555                 6,933               22,981                 1,191                    920 Prepaid Expenditures (Other)                        ‐ ‐                     ‐                     ‐                     ‐ Security Deposit                        ‐ ‐                     ‐                     ‐                     ‐ Deposit ‐ Earnest Money                        ‐ ‐                     ‐                     ‐                     ‐ Deposit ‐ State Condemnation                        ‐ ‐                     ‐                     ‐                     ‐ Prepaid Items (Expenditures)                  65,114 ‐                     ‐                     ‐                     ‐ Prepaid Bond Insurance Premium                        ‐                     ‐ ‐                     ‐                     ‐ Deferred Loss on Refunding                        ‐ ‐                     ‐                     ‐                     ‐ TOTAL ASSETS          45,415,597         1,785,270         5,983,123            259,593            222,935

LIABILITIES
Accounts Payable            2,521,741            572,372            300,606                 1,114               12,452 Accrued Salaries & Benefits                523,558 ‐                     ‐                                   19,458 ‐ Retentions Payable                  86,109               64,582               27,564 ‐                     ‐ Accrued Expenses                886,643 ‐                                   63,858 ‐                     ‐ Deferred Revenue                114,707 ‐                     ‐                     ‐                     ‐ Interest Payable                        ‐ ‐                     ‐                     ‐                     ‐ Bond Payable                        ‐                     ‐ ‐                     ‐                     ‐ Bond Premium            1,624,445 ‐                     ‐                     ‐                     ‐ Deferred Loss on Refunding                        ‐ ‐                     ‐                     ‐                     ‐ Deposit ‐ Miscellaneous                        ‐ ‐                     ‐                     ‐                     ‐ Developer Deposit Payable                        ‐ ‐                     ‐                     ‐                     ‐ TOTAL LIABILITIES            5,757,203            636,954            392,028               20,572               12,452

FUND BALANCES
Non‐spendable                  74,711 ‐                     ‐                     ‐                     ‐ Committed          11,065,624 ‐                     ‐                     ‐                     ‐ Assigned                503,500 ‐                     ‐                     ‐                     ‐ Unassigned Fund Balance          28,014,559 ‐                     ‐                     ‐                     ‐ Fund Balance (Other Funds)                        ‐         1,148,317         5,591,095            239,021            210,483 TOTAL FUND BALANCE 39,658,394                   1,148,317         5,591,095            239,021            210,483

TOTAL LIABILITIES &
FUND BALANCE          45,415,597         1,785,270         5,983,123            259,593            222,935 DRAFT 258 of 301
City of Goleta
Balance Sheet (Unaudited)
For the Quarter Ending June 30, 2023
Attachment 3
ASSETS
Cash & Investments
Claim on Cash
Petty Cash
Bond Discount
Cash with Fiscal Agent
Investments
Unrealized Gain/Loss on Invest
Receivables
Accounts
RDA Settlement Receivable
Interest
Prepaid Expenditures (Other)
Security Deposit
Deposit ‐ Earnest Money
Deposit ‐ State Condemnation
Prepaid Items (Expenditures)
Prepaid Bond Insurance Premium
Deferred Loss on Refunding

TOTAL ASSETS

LIABILITIES
Accounts Payable
Accrued Salaries & Benefits
Retentions Payable
Accrued Expenses
Deferred Revenue
Interest Payable
Bond Payable
Bond Premium
Deferred Loss on Refunding
Deposit ‐ Miscellaneous
Developer Deposit Payable

TOTAL LIABILITIES

FUND BALANCES
Non‐spendable
Committed
Assigned
Unassigned Fund Balance
Fund Balance (Other Funds)

TOTAL FUND BALANCE

TOTAL LIABILITIES &

FUND BALANCE
County Per
Capita ‐
Solvang
Solid Waste GTIP Parks DIF
Public Facilities
DIF
210 211 220 221 222
194,860         1,617,041       10,738,089         8,567,526                (2,409) ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ (2,165)             (17,963)           (119,287)             (95,175) ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐            135,077 ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ 807                 6,674               42,999               34,134 ‐ ‐                    146 ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐                     ‐         1,723,000 ‐                     ‐ ‐ ‐                                   35,156 ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ 193,502         1,740,975       12,419,957         8,506,486               (2,409) 11,562            129,129         1,676,447               94,005 ‐ ‐               15,769 ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                                     9,990            146,536 ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐                     ‐ ‐                     ‐                     ‐ 11,562            144,898         1,686,437            240,540 ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ 181,940         1,596,076       10,733,520         8,265,945                (2,409) 181,940         1,596,076       10,733,520         8,265,945               (2,409) 193,502         1,740,975       12,419,957         8,506,486               (2,409) DRAFT 259 of 301
City of Goleta
Balance Sheet (Unaudited)
For the Quarter Ending June 30, 2023
Attachment 3
ASSETS
Cash & Investments
Claim on Cash
Petty Cash
Bond Discount
Cash with Fiscal Agent
Investments
Unrealized Gain/Loss on Invest
Receivables
Accounts
RDA Settlement Receivable
Interest
Prepaid Expenditures (Other)
Security Deposit
Deposit ‐ Earnest Money
Deposit ‐ State Condemnation
Prepaid Items (Expenditures)
Prepaid Bond Insurance Premium
Deferred Loss on Refunding

TOTAL ASSETS

LIABILITIES
Accounts Payable
Accrued Salaries & Benefits
Retentions Payable
Accrued Expenses
Deferred Revenue
Interest Payable
Bond Payable
Bond Premium
Deferred Loss on Refunding
Deposit ‐ Miscellaneous
Developer Deposit Payable

TOTAL LIABILITIES

FUND BALANCES
Non‐spendable
Committed
Assigned
Unassigned Fund Balance
Fund Balance (Other Funds)

TOTAL FUND BALANCE

TOTAL LIABILITIES &

FUND BALANCE
Library DIF
Sheriff
Facilities DIF Housing in Lieu Fire DIF
Long Range
Development
Plan (LRDP)
223 224 225 229 230
196,602            143,443         1,260,282         3,476,986               56,429 ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ (2,184)                (1,593)             (14,000)             (38,625) ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ 838                    570                 5,075               13,821 ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐                     ‐ ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ 195,256            142,419         1,251,357         3,452,181               56,429 27,377 ‐                     ‐                     ‐                                   11,613 ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                                     1,190 ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐                     ‐ ‐                     ‐                     ‐ 27,377 ‐                     ‐                     ‐                                   12,803 ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ 167,880            142,419         1,251,357         3,452,181               43,626 167,880            142,419         1,251,357         3,452,181               43,626 195,256            142,419         1,251,357         3,452,181               56,429 DRAFT 260 of 301
City of Goleta
Balance Sheet (Unaudited)
For the Quarter Ending June 30, 2023
Attachment 3
ASSETS
Cash & Investments
Claim on Cash
Petty Cash
Bond Discount
Cash with Fiscal Agent
Investments
Unrealized Gain/Loss on Invest
Receivables
Accounts
RDA Settlement Receivable
Interest
Prepaid Expenditures (Other)
Security Deposit
Deposit ‐ Earnest Money
Deposit ‐ State Condemnation
Prepaid Items (Expenditures)
Prepaid Bond Insurance Premium
Deferred Loss on Refunding

TOTAL ASSETS

LIABILITIES
Accounts Payable
Accrued Salaries & Benefits
Retentions Payable
Accrued Expenses
Deferred Revenue
Interest Payable
Bond Payable
Bond Premium
Deferred Loss on Refunding
Deposit ‐ Miscellaneous
Developer Deposit Payable

TOTAL LIABILITIES

FUND BALANCES
Non‐spendable
Committed
Assigned
Unassigned Fund Balance
Fund Balance (Other Funds)

TOTAL FUND BALANCE

TOTAL LIABILITIES &

FUND BALANCE
Developer
Agreements
County Fire
DIF
RSTP       State
Grant STIP HBP
231 232 305 308 401
615,163           (277,075)           (420,350)             (27,845)             (80,890) ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐                     ‐ ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ 615,163           (277,075)           (420,350)             (27,845)             (80,890) ‐ ‐                     ‐                     ‐                                392,145 ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                                392,145 ‐ ‐                     ‐                     ‐                                         ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐ 615,163           (277,075)           (420,350)             (27,845)           (473,035) 615,163           (277,075)           (420,350)             (27,845)           (473,035) 615,163           (277,075)           (420,350)             (27,845)             (80,890) DRAFT 261 of 301
City of Goleta
Balance Sheet (Unaudited)
For the Quarter Ending June 30, 2023
Attachment 3
ASSETS
Cash & Investments
Claim on Cash
Petty Cash
Bond Discount
Cash with Fiscal Agent
Investments
Unrealized Gain/Loss on Invest
Receivables
Accounts
RDA Settlement Receivable
Interest
Prepaid Expenditures (Other)
Security Deposit
Deposit ‐ Earnest Money
Deposit ‐ State Condemnation
Prepaid Items (Expenditures)
Prepaid Bond Insurance Premium
Deferred Loss on Refunding

TOTAL ASSETS

LIABILITIES
Accounts Payable
Accrued Salaries & Benefits
Retentions Payable
Accrued Expenses
Deferred Revenue
Interest Payable
Bond Payable
Bond Premium
Deferred Loss on Refunding
Deposit ‐ Miscellaneous
Developer Deposit Payable

TOTAL LIABILITIES

FUND BALANCES
Non‐spendable
Committed
Assigned
Unassigned Fund Balance
Fund Balance (Other Funds)

TOTAL FUND BALANCE

TOTAL LIABILITIES &

FUND BALANCE
CDBG
RDA Successor‐
NonHousing Other Funds TOTAL FUNDS
402 605 *
(1,189)                887,940            7,148,237            84,458,156 ‐                         ‐                       228                      1,378 ‐                         ‐                        ‐                          ‐ ‐                        900                        ‐                         900 503,500                 503,500
‐                         ‐                (87,175)                (986,923) ‐                         ‐                        ‐                          ‐ 8,419                         ‐               347,887              4,126,496 ‐             2,327,823                        ‐              2,327,823 ‐                     3,376                 14,703                 331,579 ‐                         ‐                       149                         294 ‐                         ‐                        ‐                          ‐ ‐                         ‐                        ‐                          ‐ ‐                         ‐                        ‐              1,723,000 ‐                         ‐                        ‐                 100,270 ‐                  57,207                        ‐                    57,207 ‐                596,502                        ‐                 596,502 7,230             3,873,747            7,927,529            93,240,182 18,585                         ‐               799,406              6,568,552 ‐                         ‐                 44,917                 603,702 ‐                         ‐                 50,574                 228,829 ‐            1,276,107              2,384,324
‐                145,647            5,973,990              6,234,344 ‐                  39,496                        ‐                    39,496 ‐                         ‐                        ‐                          ‐ ‐                         ‐                (77,840)              1,546,605 ‐           11,025,000                        ‐            11,025,000 ‐             1,323,777                        ‐              1,323,777 ‐                         ‐               678,079                 678,079 18,585           12,533,920            8,745,232            30,632,707 ‐                         ‐                        ‐                    74,711 ‐                         ‐                        ‐            11,065,624 ‐                         ‐                        ‐                 503,500 ‐                         ‐                        ‐            28,014,559 (11,355)            (8,660,173)              (817,704)            22,949,081 (11,355)           (8,660,173)             (817,704)            62,607,475 7,230             3,873,747            7,927,529            93,240,182 DRAFT 262 of 301
City of Goleta
Balance Sheet (Unaudited)
For the Quarter Ending June 30, 2023
Attachment 3
ASSETS
Cash & Investments
Claim on Cash
Petty Cash
Bond Discount
Cash with Fiscal Agent
Investments
Unrealized Gain/Loss on Invest
Receivables
Accounts
RDA Settlement Receivable
Interest
Prepaid Expenditures (Other)
Security Deposit
Deposit ‐ Earnest Money
Deposit ‐ State Condemnation
Prepaid Items (Expenditures)
Prepaid Bond Insurance Premium
Deferred Loss on Refunding

TOTAL ASSETS

LIABILITIES
Accounts Payable
Accrued Salaries & Benefits
Retentions Payable
Accrued Expenses
Deferred Revenue
Interest Payable
Bond Payable
Bond Premium
Deferred Loss on Refunding
Deposit ‐ Miscellaneous
Developer Deposit Payable

TOTAL LIABILITIES

FUND BALANCES
Non‐spendable
Committed
Assigned
Unassigned Fund Balance
Fund Balance (Other Funds)

TOTAL FUND BALANCE

TOTAL LIABILITIES &

FUND BALANCE
*Other Funds Include:
202 Transportation
203 RMRA
206 Measure A‐ Other
212 Public Safety Donations
217 GCC
226 Environmental Programs
233 OBF ‐ SCE
236 Misc Grans Library
237 Local Grants
238 DIF Non‐Residential
301 State Park Grant
302 COPS ‐ Public Safety Grant
304 Solid Waste ‐ Recycling Grant
306 LSTP
311 Misc. Grant
314 SCG
317 SSARP Grant
318 ATP (State)
319 Housing and Community Development
320 Cal OES
321 TIRCP
409 OTS Public afety Fund
417 Highway Safety Improvement Program
419 TIGER
420 FHWA ‐ FEMA Reimb
421 HMGP ‐ Hazard Mit Grant
423 ARPA
501 Library Services
502 Street Lighting
503 PEG
504 CASp Cert & Training
701 Plover Endowment
801 Developer Deposits
806 iBank
DRAFT 263 of 301
ITEM V:
264 of 301
Agenda Item X.X

CPMS CONSENT CALENDAR
Meeting Date: September 19, 2023
TO: Mayor and Councilmembers
FROM: Luke Rioux, Finance Director
SUBJECT: Annual Review and Adoption of City’s Investment Policy RECOMMENDATION:

Adopt Resolution No. 23-_ entitled, “A Resolution of the City Council of the City of Goleta, California Adopting the City of Goleta Investment Policy and Rescinding Resolution No. 22-56.”
BACKGROUND:

The City’s Investment Policy created in June 2005, serves as a guide for achieving the City’s investment goals, and defines strategies, practices, authority, and procedures to be used for management of the City’s investment portfolio in accordance with California Government Code (Government Code) Sections 53600-53610, which establish legally permitted investments for local governments statewide.

Annual review and adoption of a local agency’s investment policy is a recommended best practice and is a requirement in the City’s Investment Policy. It also gives the City Council the opportunity to ensure the policy is consistent with the overall primary objectives, which are, in order of priority: safety, liquidity, and yield. The City Council is authorized expressly to invest and manage the City’s public funds pursuant to Government Code Section 53600.3. As provided in the Investment Policy, annually the City Council formally delegates authority to the Finance Director/City Treasurer to invest and reinvest funds and to sell or exchange securities for a one-year period, pursuant to Government Code Section 53607.

The City’s Investment Policy was last reviewed and adopted on November 15, 2022, which included continued investment authority delegated to the Finance Director/City Treasurer. There were no recommended statutory changes or policy updates made at that time and only updates to language to increase transparency and clarify terms and sections, which included additional definitions for investing, reporting, and safekeeping of City’s financial assets. The updates made were in accordance with recommended best practice from the California Municipal Treasurer’s Association (CMTA) and California Debt and Investment Advi
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sory Commission (CDIAC).
265 of 301
Meeting Date: September 19, 2023

DISCUSSION:

Investment Policy Updates
Annually, staff reviews the City’s Investment Policy and recommends revisions to the policy, as needed, to incorporate policy or statutory changes affecting the City’s investment program and daily investing activities. Policy revisions are technical in nature, such as process changes or language clarifications. Statutory changes are updates in state law affecting allowable investments or procedures related to investing activities.

Staff has performed its annual review and are not recommending any policy revisions or statutory changes.

Delegation of Authority
Staff recommends the continued delegation of authority to the Finance Director/City Treasurer. As provided in the Investment Policy, Council formally delegates authority to the Finance Director/City Treasurer for a one fiscal-year period. The management and responsibility for the investment program is delegated to the Finance Director/City Treasurer. Under the authority granted by the City Council, no person may engage in investment transactions covered by the terms of this policy unless directed by the Finance Director/City Treasurer. All investment transactions shall also require the signature of the City Manager or designee and are subject to the authorized investments outlined in the Investment Policy.

The attached Resolution confirms the annual review and delegation of authority to staff to complete investment transactions (Attachment 1). The Investment Policy is provided as Exhibit A to Attachment 1.

FINANCE AND AUDIT STANDING COMMITTEE:

Staff met with the Finance Committee on September 11, 2023 to review the Investment Policy.

FISCAL IMPACTS:

There are no direct fiscal impacts to the City for adopting the City’s Investment Policy.

The policy conforms to California Government Code and complies with best practices designed to meet the City’s short and long-term cash flow needs by managing safety, liquidity and yield in a prudent manner.

ALTERNATIVES:

Approval of the Investment Policy annually by the legislative body is required by City policy and is a recommended best practice. The Council may request alterations be made to any section as long as the revisions meet the requirements of DRAFT
Government Code.
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Meeting Date: September 19, 2023

Reviewed By: Legal Review By: Approved By:
___________________ ___________________ _________________ Kristine Schmidt Megan Garibaldi Robert Nisbet
Assistant City Manager City Attorney City Manager
ATTACHMENTS:

1. Resolution No. 23-__ entitled, “A Resolution of the City Council of the City of Goleta, California, Adopting the City of Goleta Investment Policy and Rescinding Resolution No. 22-56.”
Exhibit A – Investment Policy
DRAFT 267 of 301
ATTACHMENT 1:

Resolution No. 23-__ entitled, “A Resolution of the City Council of the City of Goleta, California, Adopting the City of Goleta Investment Policy and Rescinding Resolution No. 22-56” DRAFT 268 of 301
RESOLUTION NO. 23-__

A RESOLUTION OF CITY COUNCIL OF THE CITY COUNCIL OF

GOLETA, CALIFORNIA, ADOPTING THE CITY OF GOLETA
INVESTMENT POLICY AND RESCINDING RESOLUTION NO. 22-56
WHEREAS, On June 20, 2005, the City Council adopted and established a policy regarding the investment of City funds; and
WHEREAS, the City’s Investment Policy was last modified on November 15, 2022; and
WHEREAS, staff recommends renewing the delegation of authority to the City Treasurer/Finance Director to manage the City’s investment program and engage in investment tractions covered by the terms of the investment policy.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GOLETA DOES RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1:

The attached Exhibit A, City of Goleta Investment Policy – Fiscal Year 2023/24, is hereby adopted and incorporate herein.

SECTION 2.

Resolution 22-56, which adopted a previous version of the City of Goleta Investment Policy, is hereby rescinded.

SECTION 3.

The City Clerk shall certify to the adoption of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 19th day of September 2023. ______________________________

PAULA PEROTTE, MAYOR
ATTEST: APPROVED AS TO FORM:
________________________ ______________________________ DEBORAH S. LOPEZ MEGAN GARIBALDI

CITY CLERK CITY ATTORNEY
DRAFT 269 of 301

STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )
I, DEBORAH S. LOPEZ, City Clerk of the City of Goleta, California, DO HEREBY CERTIFY that the foregoing Resolution No. 23-__ was duly adopted by the City Council of the City of Goleta at a regular meeting held on the 19th day of September, 2023 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTENTIONS:
(SEAL)

_________________________
DEBORAH S. LOPEZ

CITY CLERK
DRAFT 270 of 301
Statement of Investment Policy
Fiscal Year 2023/24
Exhibit A
DRAFT 271 of 301
City of Goleta
Statement of Investment Policy
Fiscal Year 2023/24
Table of Contents

1.0 Purpose ............................................................................................................. 3

2.0 Policy ................................................................................................................. 3

3.0 Scope ................................................................................................................. 3

4.0 Prudence ........................................................................................................... 4

5.0 Objectives .......................................................................................................... 5

6.0 Delegation of Authority ....................................................................................... 7

7.0 Ethics, Public Trust and Conflicts of Interest ...................................................... 8

8.0 Authorized Financial Institutions and Broker/Dealers ........................................ 9

9.0 Authorized and Suitable Investments............................................................... 11

10.0 Review of Investment Portfolio ........................................................................ 13

11.0 Investment Pools and Money Market Mutual Funds ........................................ 14

12.0 Collateralization ............................................................................................... 16

13.0 Safekeeping and Custody ................................................................................ 16

14.0 Diversification .................................................................................................. 17

15.0 Maximum Maturities ......................................................................................... 18

16.0 Internal Controls .............................................................................................. 18

17.0 Performance Standards ................................................................................... 19

18.0 Investment Reporting ....................................................................................... 20

19.0 Statement of Investment Policy Compliance and Adoption .............................. 21

20.0 Exceptions ....................................................................................................... 21

21.0 Glossary of Investment Terms ......................................................................... 22 DRAFT 272 of 301
City of Goleta
Annual Statement of Investment Policy
Fiscal Year 2023/24
3 1.0 Purpose
It is the purpose of the City’s investment policy to establish strategies, practices and procedures to be used in investing public funds in a prudent manner, which will provide the maximum security while meeting daily cash flow needs and conforming to all statutes governing the investment of public funds.

Secondly, this document will identify policies that enhance opportunities for a prudent and systematic investment of public funds. This policy is intended to guide the investment of City funds toward the goals of safety, liquidity and yield.

2.0 Policy
This Statement of Investment Policy (“Policy” or “Investment Policy”), as set forth by the City of Goleta (“City”) provides guidelines for prudent investment of the City’s cash balances and outlines the policies essential to ensuring the safety and strength of the City’s investment portfolio.
to invest public funds not required for immediate day-to-day operations, also referred to as idle funds, in safe and liquid investments having acceptable rates of return while conforming to all state statutes and this City's Investment Policy.

This Policy is based on principles of prudent money management and conforms to all applicable federal, state and local laws governing the investment of public funds, including the State of California Government Code (“California Government Code”).

California Government Code Section 53646 (a)(2) states that the City Treasurer may annually submit an investment policy to the City Council for consideration at a public meeting. This investment policy conforms to all pertinent existing laws of the State of California, including California Government Code Sections 53600 et seq. Any conflict between this City Investment Policy and California Government Code Section 53600 et. seq., shall be interpreted in favor of the California Government Code.

3.0 Scope
(Reference: Code Sections 5922(d), 53601(m))
This investment policy applies to all financial assets and investment activities of the City. These funds are reflected in the City’s audited Annual Comprehensive Financial Report (ACFR). If the City inve
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sts funds on behalf of another agency
273 of 301
City of Goleta
Statement of Investment Policy
Fiscal Year 2023/24
4 and, if that agency does not have its own policy, the City’s investment policy shall govern the agency’s investments. Any additional funds that may be created from time to time shall also be administered within the provisions of this policy and comply with the California State Government Code. This policy covers the investment activities of idle funds under the direct authority of the City.

3.1 Funds Included by this Policy
 General Fund
 Special Revenue Funds
 Debt Service Funds
 Capital Project Funds
 Fiduciary Funds

3.2 Pooling of Funds
Except for cash in certain restricted and special funds, the City shall consolidate cash balances from all funds to maximize investment earnings. Investment income shall be allocated to various funds as identified in the investment procedures manual in accordance with generally accepted accounting principles.

3.3 Investments Held Separately
In some instances, investments cannot be included in the City's investment pool. These may include investments of bond proceeds. In such cases the funds will be held separately when required by law, contract or other authority. Pursuant to California Government Code Sections 5922(d) and 53601(m), such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures. Funds held in bond proceeds accounts are reported in the City’s Monthly Investment Report. The City’s Policy does not apply to funds held in trust in the City’s name in pension and other post-retirement benefit programs.

4.0 Prudence
(Reference: Code Sections 53600.3, 53646, 27000.3)
The City Treasurer is authorized to make investment decisions on behalf of the City investing public funds subject to the prudent investment standard. The Prudent Investor Standard of the California Government Code Section 53600.3 states, “when investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated need of the [City], that a prudent person in a like capacity and familiarity with thos
DRAFT
e matters would use in the conduct of
274 of 301
City of Goleta
Statement of Investment Policy
Fiscal Year 2023/24
5 funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the [City]”. The standard of prudence to be used by investment officials shall be applied in the context of managing the overall portfolio.

Trustees are those persons authorized to make investment decisions on behalf of a local agency. Trustees or City investment officials, acting in accordance with written procedures, the investment policy and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk changes or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

5.0 Objectives
(Reference: Code Section 53600.5)
It is the policy of the City to invest public funds in a manner which will provide for preservation of capital while meeting the daily cash flow requirements of the City and attaining a market average rate of return within an acceptable and defined level of risk.

Section 53600.5 of the California Government Code outlines the primary objectives of a trustee investing public money. The primary objectives, in order of priority, of the City’s investment activities shall be:

5.1 Safety (Preservation of Capital)
Safety of principal is the foremost objective of the investment program.

Investments by the City shall be undertaken in a manner that seeks to ensure preservation of capital in the overall portfolio and reduce both credit and interest rate risk. The type of investment instruments and diversification of investments are critical components to ensuring investment portfolio safety. The objective is to mitigate credit risk and interest rate risk.

5.1.1 Credit Risk
Credit risk is the risk of loss of principal and accrued interest due to the failure of the security issuer. Credit risk can be mitigated by:
 Limiting investments to the safest types of securities. Nationally recognized ratings services will be utilized whenever possible to DRAFT
scrutinize the creditworthiness of investments.
275 of 301
City of Goleta
Statement of Investment Policy
Fiscal Year 2023/24
6  Pre-qualifying accountants, auditors, financial institutions, broker/dealers, financing advisors, and other outside consultants with which the City does business.
 Diversifying the investment portfolio so that potential losses are minimized.

5.1.2 Interest Rate Risk
Interest rate risk is the risk that the market value of securities will fall due to a rise in general market interest rates. It is the policy of the City to hold individual securities to maturity. Interest rate risk can be mitigated by:
 Holding individual securities to maturity – Structuring the investment portfolio so that securities mature to meet cash flow requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.
 Employing a laddering strategy, as appropriate and as market conditions allow for, whereby staggering maturities of individual securities so the investments come due in increments assuring a stable liquidity pattern.
 Limiting maturities of individual securities and the average maturity of the overall portfolio.

5.2 Liquidity
The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. Liquidity also refers to the ability to convert an investment to cash without loss of principal and minimal loss of interest. The City is required to include a statement in the Monthly Investment Reports indicating that the projected cash flow is adequate to meet expected obligations over the next six months or provide an explanation as to why sufficient money may or may not be available. Cash, cash equivalents, and highly liquid investments that are immediately available and carry minimal interest rate risk must comprise of at least 50% of the City’s total cash and investment holdings.

5.3 Yield (Return on Investment)
The City’s investment portfolio shall have the objective of attaining a comparative performance measurement or an acceptable rate of return throughout budgetary and economic cycles. These measurements should DRAFT
be commensurate with the City’s investment risk constraints identified in 276 of 301
City of Goleta
Statement of Investment Policy
Fiscal Year 2023/24
7 the Investment Policy and the cash flow characteristics of the portfolio.

Return on investment becomes a consideration only after the basic requirements of safety and liquidity have been met.

The City Treasurer shall strive to maintain the level of investment of all idle funds as close to 100% as possible. While the objectives of safety and liquidity must first be met, it is recognized that investment assets represent a potential source of significant revenues. It is to the benefit of the City that these assets be managed to produce optimum revenues consistent with State statutes and local policies.

6.0 Delegation of Authority
(Reference: Code Sections 41006, 53607, City of Goleta Municipal Code Section

2.05)
Authority to manage the City’s investment program is derived from the California Government Code Sections 53600 through 53609 and provides the authority for the legislative body of the local agency to invest the funds of the local agency or delegate the authority to the Treasurer of the local agency. Such delegation is to be reviewed annually and may be renewed by the City Council.

The management of idle cash and the investment of funds identified in paragraph 3(A) is the responsibility of the Finance Department. The Finance Department is under the control of the Finance Director and appointed by the City Manager as the City Treasurer in accordance to City of Goleta Municipal Code Section 2.05.

Management responsibility for the investment program is hereby delegated to the Finance Director (City Treasurer) as directed by the City Council, for a one-year period by the City Council. Subject to review, the City Council may renew the delegation of authority under this code section each year. Under the authority granted by the City Council, no person may engage in an investment transaction covered by the terms of this policy unless directed by the City Treasurer.

In the execution of this delegated authority, the City Treasurer may establish accounts with qualified financial institutions and brokers/dealers for the purpose of effecting investment transactions in accordance with this policy. The criteria used to select qualified financial institutions and brokers/dealers are identified in Part 11 of this policy.

All financial transactions, including wiring instructions, must be identified in advance and approved in writing by the City Treasurer or designee. All investment transactions in excess
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of $100,000 (except for deposits or
277 of 301
City of Goleta
Statement of Investment Policy
Fiscal Year 2023/24
8 withdrawals from the LAIF and bank deposits) shall also require the signature of the City Manager or designee.

The City Treasurer shall establish written procedures for the operation and management of the City’s investment portfolio consistent with this Policy. The procedures should include reference to safekeeping, wire transfer processes, banking service contracts, and collateral or depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in any investment transactions except as provided under the terms of this Policy and the investment procedures established by the City Treasurer.

This delegation of authority shall be in effect for one fiscal year. The City Council may renew the authority annually and may revoke the authority at any time.

7.0 Ethics, Public Trust and Conflicts of Interest
(Reference: Code Section 1090, Political Reform Act)
All participants in the City's investment process shall act responsibly as custodians of the public trust. Treasury staff shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worth of public trust.

Elected officials and employees of the City involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment recommendations and decisions under the Political Reform Act and Government Code Section 1090 et seq.

Elected officials and employees shall make all disclosures appropriate under the Fair Political Reform Act and shall seek and follow the advice of the City Attorney and the Fair Political Practices Commission whenever there is a question of personal, financial or investment positions that could represent potential conflicts of interest.

All persons, firms, broker/dealers, financial institutions, and advisors providing investment services or bond issue assistance shall disclose to the City Manager and City Treasurer all fee sharing, fee-splitting and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issue bonds.

DRAFT 278 of 301
City of Goleta
Statement of Investment Policy
Fiscal Year 2023/24
9 8.0 Authorized Financial Institutions and Broker/Dealers (Reference Code Section 53601.5, SEC Net Capital Rule 15C3-1) Authorized Financial Institutions and Broker/Dealers defined under California Government Code Section 53601.5 shall be allowed to conduct business with the City and are defined as an institution licensed by the State of California as a broker/dealer, as defined in Section 25004 of the California Corporations Code, or a member of a federally regulated securities exchange, a national or state charted bank, a savings associated or federal association or a brokerage firm designated as a primary government dealer by the Federal Reserve Bank.

Investments shall be purchased only through well-established, financially sound institutions. All financial institutions and broker/dealers who desire to become qualified vendors for investment transactions will be given a copy of the City's investment policy and certification form. The completion and submission of the certification form by a broker-dealer or financial institution shall constitute proof that it has received the City’s Statement of Investment Policy, read it, and intends to comply with it. Qualified financial institutions must provide current audited financial statements and provide either verification of a federal or a state charter or of being an eligible institution per the California Government Code.

Broker/dealers must provide current audited financial statements and verification that the firm is in good standing with one of national securities exchange that is registered with the Securities Exchange Commission.

The financial entities eligible to transact baking services and investment business with the City are:

8.1 Banking Services (Public Depository)
Banking services for the City shall be provided by FDIC insured banks approved to provide depository and other banking services. To be eligible the City shall only deposit public monies in financial institutions that have:
(1) at least $500 million in total assets; (2) a core capital-to-total assets ratio of at least five percent; (3) favorable ratings from a recognized financial institution rating service, as determined by the City Treasurer; (4) a federal or a state charter; or are eligible institutions per the California Government Code and (5) a branch office within Santa Barbara County.

Under no circumstances shall the City’s deposits in a financial institution exceed the total shareholders’ equity of that institution The City Treasurer shall maintain an Approved List of all commercial banks and all savings and loan associations which may serve as public DRAFT
depositories of City monies. That list will be reviewed by the Finance and 279 of 301
City of Goleta
Statement of Investment Policy
Fiscal Year 2023/24
10 Audit Standing Committee within three months of modifying the list and subject to a banking services agreement.

8.2 Federal Reserve Bank
Direct purchase of U.S. Treasury Bills, Notes, and Bonds using primary government dealers as designated by the Federal Reserve are exempt from quality requirements and are encouraged due to commission or mark-up discounts.

8.3 Authorized Financial Institutions – Nationally or State Chartered Banks, Savings and Loans and Credit Unions
The City will maintain a list of financial institutions authorized to provide investment services The City may purchase investments offered from Banks, Savings and Loans and Credit Unions provided the institutions are:
 Nationally or State Chartered Institutions
 Registered as investment securities dealers

8.4 Authorized Broker/Dealers
The City will maintain a list will also be maintained of approved security broker/dealers selected by credit worthiness who are authorized to provide investment services in the State of California. These may include primary dealers or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform new capital rule).

All financial institutions and broker-dealers for investment transactions must supply the following to the City as appropriate:
 Qualify for SEC Rule 15c3-1 (uniform net capital rule) as a primary or regional dealer
 Current audited financial statements from most frequent year  Proof of Financial Industry Regulatory Authority (FINRA) certification, trading resolution, proof of State of California registration
 Completed City of Goleta broker-dealer questionnaire, which contains a certification of having read, understood and agreeing to comply with the City’s Investment Policy and California Government Code Section 53600 et seq. and that all securities offered to the City shall comply fully with all provisions of the City’s Investment DRAFT
Policy and the California Government Code.
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11 The City Treasurer or designee, will conduct an annual review of the financial condition and registration of the firms providing investment services to the City.

8.5 Third Party Investment Advisor
If a third party investment advisor is authorized to conduct investment transactions on the City’s behalf, the investment advisor may use their own list of approved broker/dealers and financial institutions. The investment advisor’s approved list must be made available to the City upon request.

9.0 Authorized and Suitable Investments
The City Treasurer may invest City funds in the following instruments as specified in California Government Code, Sections 53600 et seq., and as further limited in this policy. The following table summarizes the investment types authorized by the City’s Investment Policy. In the event a discrepancy is found between this policy and California Government Code, the more restrictive parameters will take precedence.

9.1 Authorized Investment Types
Authorized Investment Max Maturity Max Limits Minimum Quality Govt. Code Other Policy Constraints Local Agency Bonds 5 years None None 53601(a) Bonds issued by the local agency, including bonds payable solely out of
the revenues from a
revenue-producing property owned,
controlled, or operated by the local
agency or by a department, board,
agency, or authority of the local
agency.

U.S. Treasury
Obligations
5 years None None 53601(b) Notes, bonds, bills
State Obligations— CA
And Others
5 years None None 53601(c)
53601(d)
Can include U.S. state obligations
issued outside of California, only as
permitted in 53601(d).

CA Local Agency
Obligations
5 years None None 53601(e) Local obligations include California based issuing agencies only, subject
to 53601(e). The City cannot directly
purchase City or affiliate debt
securities
U.S Agency Obligations
(GSE’s)
5 years 20% of portfolio;
10% single issuer
None 53601(f) Federal Agency or U.S. Government
sponsored enterprise obligations,
participations or other instruments.

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Includes: FNMA, GNMA, FHLCMC,
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12 FHLB, FFCB, FAMCA, TVA.

Commercial Paper—
Non-Pooled Funds
(under $100,000,000 of
investments)
270 days or
less
20% of portfolio;
10% single issuer;
Highest letter and
number rating by
an NRSRO
53601(h)(2)(c)
Issuing corporation must be
organized and operating
within the U.S., have assets in excess
of $500 million
Negotiable Certificates
of Deposit
5 years 20% of portfolio
$250,000 principal
invested, single
issuer
Amounts up to
$250,000 per
institution must be
insured by the
Federal Deposit
Insurance
Corporation
(FDIC) or National
Credit Union
Association
(NCUA).
53601(i) Issued by nationally or statechartered banks; savings or federal associations (as defined in Financial
Code Section 5102); state or federal
credit unions; or federally licensed or
state licensed branches of foreign
banks. Includes Brokered CDs under
Master CD that is a negotiable
instrument.

Non-negotiable
Certificates of Deposit
5 years 20% of portfolio
$250,000 principal
invested, single
issuer
Amounts up to
$250,000 per
institution must be
insured by the
Federal Deposit
Insurance
Corporation
(FDIC) or National
Credit Union
Association
(NCUA).
53630 et seq. Issued by nationally or statechartered banks; savings or federal associations (as defined in Financial
Code Section 5102); state or federal
credit unions; or federally licensed or
state licensed branches of foreign
banks.

Placement Service
Deposits
5 years 20% of portfolio
(inclusive of
placement service
CDs)
None 53601.8
and 53635.8
Includes Federally Insured Cash
Account (FICA)
Placement Service
Certificates of Deposit
5 years 20% of portfolio
(combined with
negotiable CDs)
None 53601.8
and 53635.8
Includes Certificate of Deposit
Accounting Registry System
(CDARS)
Medium-Term
Corporate Notes
5 years 20% of portfolio
Single issuer: 5%
for issuers rated
“AA”
3% for issuers
rated “A”
“AA” or “A” rating
category or its
equivalent or
better by two
NRSRO
53601(k) Must be issued by a corporation that
is organized and operating within the
United States or by depository
institutions licensed by the United
States or any state and operating
within the United States.

Mutual Funds and
Money Market Mutual
Funds
N/A 20% of portfolio Fund must have
the highest
ranking by not less
than 2 NRSRO
53601(l)
and 53601.6(b)
See section 11.1 for more
information.

Collateralized Bank
Deposits
5 years None None 53630 et seq.
and 53601(n)
Investments in notes, bonds, or other
obligations under Section 53601(n)
require that collateral be placed into
the custody of a trust company or the
trust department of a bank that is not
affiliated with the issuer of the
secured obligation, among other
specific collateral requirements.

County Pooled
Investment Funds
N/A None None 27133 Includes the County of Santa Barbara Treasurer’s Investment Pool
Joint Powers Authority
Pool
N/A None “AA” 53601(p) A joint powers authority pool must retain an investment advisor
registered with the SEC, have assets
under management in excess of $500
million, and have at least five years’
experience investing in instruments
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authorized by Section 53601,
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13 subdivisions (a) to (o). Includes
Investment Trust of California, a Joint
Powers Authority, doing business as
CalTRUST.

Local Agency
Investment Fund (LAIF)
N/A None None 16429.1 Subject to LAIF imposed maximum.
$75 million as of 1/1/20.

Bank Deposits
(Operating Cash)
Collateralized or FDIC
Insured
N/A No limit Satisfactory rating
from national bank
rating service and
Community
Reinvestment Act
review per Code
Section 53635.2.

Must be an
institution
participating in the
California Local
Agency Security
Program,
providing for 110%
collateralization of
public funds.
53635.2
53649,53638
Amounts up to $250,000 per
institution are insured by the FDIC.

Amounts over the insurance limit are
subject to collateralization
requirements outlined in Section 12
and appropriate Code sections.

9.2 Unauthorized Investments
Investments not specifically authorized herein are disallowed. Additionally, Section 53601.6 of the California Government Code disallows the following: inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Futures, options, all leveraged purchases, reverse repurchases, and speculations on interest rates are specifically not allowed by this policy.

10.0 Review of Investment Portfolio
The securities held by the City must follow Section 9.0 Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section 9.0 after the date of purchase, the City Treasurer or designee, shall at least quarterly review the portfolio to identify those securities that do not comply. The City Treasurer shall establish procedures to report to the City Council and Finance and Audit Standing Committee, major and critical incidences of noncompliance identified through the review of the portfolio.

If securities owned by the City are downgraded to a level below the quality required by this Policy, the City Treasurer or designee shall review the credit situation and make a determination as to whether sell or retain such securities in the portfolio.

In addition, the percentage ownership limitations as shown in Section 9.0 are evaluated at the time of investment purchase. Should the investment percentages exceed those limitations over
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time due to unforeseen fluctuations
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14 resulting in changes in portfolio values or holdings, the City Treasurer or designee will evaluate monthly to determine if corrective action is necessary.

Should any other condition arise or exist after the purchase of a security that renders the security out of compliance with the Policy, the City Treasurer will evaluate monthly to determine if corrective action is necessary.

The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions, the City’s risk preferences, and to address securities that no longer meet the parameters required in Section 9.0. However, the City may not engage in active trading or speculation at any time.

11.0 Investment Pools and Money Market Mutual Funds
(Reference: Code Sections 16429.1 et sec., 27133, 53601(p), 53601, 53635) Investment pools and money market mutual funds include the Local Agency Investment Fund (LAIF), the County of Santa Barbara’s Pooled Treasury Investment Funds, the Investment Trust of California (dba, CalTRUST), and shares of beneficial interest issued by authorized diversified management companies (money market mutual funds). A thorough investigation of the pool or fund is required prior to investing, and on a periodic basis while funds are invested.

11.1 Investment Pools
Government sponsored investment pools (Pools) are permitted under California Government Code Section 53601 and are an excellent shortterm investment option for cash management. There shall be a questionnaire developed which will answer the following general questions:
 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced, and the program audited.
 A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.

DRAFT  A schedule for receiving statements and portfolio listings. 284 of 301
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15  A description of how the pool/fund maintain reserves, retained earnings etc., or is all income after expenses distributed to participants.
 A fee schedule, and when and how it is assessed.
 The eligibility of the pool/fund to invest in bond proceeds and a description of its practices.

The Pool must also publish timely monthly information which will include performance results, portfolio maturity statistics and credit rating, as applicable. The information shall also include a detailed list of investment holdings, including market value, maturity, and credit rating for each security.

11.2 Money Market Mutual Funds
Money market mutual funds provide a safe, liquid, and diversified investment option for the City’s surplus funds; however, certain conditions need to be met both initially and on an ongoing basis. The City is not permitted to invest in mutual funds other than money market mutual funds.

Money market mutual funds held by the City may only invest in US Government securities permitted under this Policy and under Code Section 53601 et seq. with final stated maturities of one year or less.

To be an eligible money market investment under this section, the primary objective of the money market, as stated in the fund’s prospectus, is to maintain a constant $1.00 Net Asset Value (NAV). The following additional guidelines include but are not limited to those provided for in Rule 2A-7 of the Investment Company Act and Code Section 56001(l)2:
 Only invests in US Government securities, and the weighted average maturity of the portfolio is less than 60 days
 The fund shall be registered with the SEC
 The fund shall have a minimum of $500 million in total asset size at time of investment and should not drop below this threshold  The fund must have retained an investment advisor registered or exempt from registration with the SEC with 5 years’ experience managing money market funds more than $500 million
 The money market shall have attained the highest ranking, or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations (NRSRO) and DRAFT
shall maintain these ratings for the duration of the investment 285 of 301
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16 12.0 Collateralization
(Reference: Code Sections 53601, 53630, 53649, 53652, 53653, 53656, 53657)

12.1 Investments
Investments in certificates of deposit, sweep accounts and passport accounts shall be fully insured up to the limit set by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). Investments in certificates of deposit, sweep accounts and passport accounts in excess of the FDIC or NCUA limit shall be properly collateralized as required by law.

The City will only place in a certificate of deposit that amount of principal which is covered by FDIC or NCUA insurance (per Government Code Section 53653).

12.2 Cash in Bank Depository Accounts
Cash in depository accounts must be placed with financial institutions participating in the California Local Agency Security Program, providing for collateralization of public funds invested in government securities, and pursuant to a contract with the depository meeting the requirements of Government Code Section 53649. The financial institution must have also received a satisfactory rating from national bank rating service and from Community Reinvestment Act review per Government Code Section 53635.2.

All active and inactive deposits must always be secured with eligible government securities in securities pools pursuant to Code Sections 53656 and 53657, at 110% of market value per Section 53652. Per Code Section 53638 deposits may not exceed bank shareholder equity; total net worth of depository savings or federal association; unimpaired capital and surplus of a credit union; unimpaired capital and surplus of industrial loan companies. The Treasurer may waive collateral for the portion of any deposits insured pursuant to federal law.

Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution is granted, within the parameters and constraints of this Policy.

13.0 Safekeeping and Custody
(Reference: Code Section 53608)
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17 To protect against fraud, embezzlement, or losses caused by a collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third-party bank trust department, acting as an agent of the City under the terms of a custody agreement. All security transactions entered by the City shall be conducted on a delivery-vs.-payment (DVP) basis. Securities owned by the City, (except the collateral for certificates of deposit in banks and/or savings and loans) shall be held by a third-party custodian/safekeeping account designated by the City Treasurer and evidenced by safekeeping receipts. Said securities shall be held in a manner that establishes the City’s right of ownership.

The only exception to the foregoing shall be depository accounts and security purchases made with: LAIF, other investment pools, time certificates of deposit and money market mutual funds held directly with issuing institution, since the purchased securities are not deliverable.

The third-party custodian/safekeeping account shall annually provide a copy of their most recent report of internal controls and provide periodic statements of the securities owned by the City listing the specific instrument, rate, maturity and other pertinent information.

14.0 Diversification
The City recognizes that investment risks can result from the issuer defaults, market price changes, or various technical complications leading to temporary liquidity. To minimize the City’s exposure to these types of risk, the portfolio should be diversified among several types of institutions, instruments, and maturities. The City Treasurer shall minimize default risk by prudently selecting only instruments and institutions, which at the time of placement have been evaluated for their financial viability and compliance with this policy. No individual transaction shall be undertaken that jeopardizes the total capital position of the overall portfolio.

The portfolio instrument composition shall be diversified to the extent feasible to avoid incurring unreasonable and avoidable risks regarding specific security types indicated in Section 9 of this investment policy. No more than ten percent (10%) of the value of the City's portfolio will be placed with any single issuer, except for the U.S. Treasury/Federal agency securities, authorized pools, and collateralized investments, and cash held in bank depository account. No more than 20% of the City’s investment portfolio will be invested in a single security type, except for U.S. Treasury securities, authorized agency investment pools, and collateralized bank deposits.

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18 15.0 Maximum Maturities
(Reference: Code Section 53601)
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Maturities will be selected based on cash flow projections that facilitate selecting investment maturity dates to match the projected expenditures.

A policy of laddered portfolio shall be followed for pooled investments. At least thirty-five percent (35%) of the portfolio value shall be invested in instruments maturing within one year from the investment date. No more than twenty-five percent (25%) of the entire portfolio value shall have a maturity date between three (3) and five (5) years from the investment date, unless the City Treasurer can demonstrate via a comprehensive cash-flow analysis that higher percentages allow the City to meet its cash-flow requirements. Investments having a maturity greater than five (5) years shall not be made unless matched to a specific cash flow and approved by City Council.

The weighted average maturity of the investment portfolio must be less than two and half (2.5) years. This calculation will be provided in the Monthly Investment Transaction Report.

In addition, the City Treasurer or designee shall strive to maintain operating cash of an amount no greater than 10% of total City cash and investments, in order to maximize interest earnings while managing liquidity needs.

16.0 Internal Controls
The City Treasurer shall establish and maintain a system of appropriate internal controls to ensure compliance with policies and procedures. The controls should be designed to prevent losses of public funds arising from fraud, error, or imprudent actions by employees and officers of the City. The following procedures shall generally be followed:

16.1 Annual Review and Audit
An annual review and audit of the City’s Investment Policy, practices, procedures and portfolio status will be conducted by an independent auditor. This review will provide internal control by assuring compliance with policies and procedures. The auditor will provide the City with written observations and recommendations regarding the adequacy of investment DRAFT
controls. The Treasurer will oversee the implementation of any corrective 288 of 301
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19 actions indicated by the auditor in a timely fashion and will provide a written report of those actions to the City Manager.

16.2 Segregated Investment Execution, Recordkeeping and Reporting An independent member of City staff will record the Treasurer’s investment records or confirmations to the City’s general ledger. In addition, independent staff will perform the monthly reconciliation of bank, broker/dealer, and safekeeping confirmations and will include the following:
 Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction.
 Timely bank reconciliation is conducted to ensure proper handling of all transactions
 The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by the Finance Department on a monthly and quarterly basis.

16.3 Wire Transfer Controls
All City wire transfers will be executed in accordance with written operating procedures specifying controls required for wire transfers of funds, including the establishment of repetitive (“templated”) wires to settle securities transactions. All wire transfers require three Finance staff or employees to initiate, approve, and release each transaction. Two factor authentication is required for each individual to engage in the wire release process, which includes unique passwords, and the use of bank security phone call verification. Final release of all wires from the City, investment or otherwise, require the approval of either the City Treasury or City Manager. The City Treasurer is responsible for ensuring that investment trade settlement occurs in a timely manner and that execution confirmations reflect accurate trade data.

17.0 Performance Standards

17.1 Investment Strategy
The City’s overall investment strategy is passive. The City intends to hold its investments to call or maturity. The buy and hold strategy shall generally be followed. A buy and hold strategy require that the portfolio be kept sufficiently liquid to preclude the undesirable sale of investments prior DRAFT
to call or maturity. Occasionally, the City Treasurer may find it 289 of 301
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20 advantageous to sell an investment prior to call or maturity, such as when the return for an alternative investment would significantly exceed the loss on the current investment. The sale of investments prior to call or maturity should be only on an exception basis and only when it is clearly favorable to do so. To further provide for liquidity, investments will be made only in readily marketable securities actively traded in the secondary market.

17.2 Benchmark
The City shall use the LAIF apportionment rate, the 1-year U.S. Treasury Note, the 2-year U.S. Treasury Note or compare other average Constant Maturity Treasury (CMT) whose maturity most closely matches the weighted average maturity of the portfolio. These rates will serve as useful benchmarks to measure whether or not the City’s portfolio net yields are matching or surpassing the market yields. The benchmarks and investment performance will be reviewed by the Finance and Audit Standing Committee as market conditions warrant or when the benchmarks are not met for a consecutive one-year period.

Calculation of the City’s return on the investment portfolio for purposes of performance standard comparisons shall not include operating cash or equivalents.

18.0 Investment Reporting
(Reference: Code Sections 53607 and 53646 (b))
In accordance with California Government Code Section 53607, the investment report shall be submitted to the City Council on a monthly basis by the City Treasurer. The City Treasurer shall review and render monthly and quarterly investment reports and include the following:
 The monthly report shall include an accounting of all receipts, disbursements and fund balances.
 The quarterly report shall include an itemized listing of portfolio investments by type, date of maturity, yield to maturity, issuer, par value, dollar amount invested, book value and current market value if applicable. The source of the market values will be cited.
 The quarterly report will include a statement of compliance of the portfolio with the City's investment policy or an explanation as to why the portfolio is not in compliance per California Government Code Section 53646(b)(2).  The quarterly report shall include a statement of compliance that the investment portfolio has the ability to meet the City's expenditure DRAFT
requirements for the next six months, or provide an explanation as to why 290 of 301
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21 sufficient money shall, or may, not be available, per California Government Code Section 53646 (b)(3).

So long as the City Council’s annual delegation of investment authority to the City Treasurer pursuant to Government Code Section 53607 is effective, the Treasurer shall make the above-described reporting of all investment transactions to the City Council.

19.0 Statement of Investment Policy Compliance and Adoption (Reference: Code Section 53646)
The City's investment policy shall be adopted by resolution annually by the City Council. The policy shall be reviewed annually first by the Finance and Audit Standing Committee and by the City Council. Any modifications to the investment policy must be approved by the City Council. The City Council has charged the City Treasurer and designated staff with the responsibility to review and to recommend updates to the Policy.

The City Treasurer shall establish written Investment Policy internal procedures for the operations of the investment program consistent with this Policy. The procedures should include reference to safekeeping, wire transfer agreements and procedures, banking service contracts and collateral/depository agreements.

Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures.

20.0 Exceptions
Occasionally, exceptions to some of the requirements specified in this investment policy may occur for pooled investments because of events subsequent to the purchase of investment instruments. State law is silent as to how exceptions should be corrected. Exceptions may be temporary or more lasting; they may be self-correcting or require specific action. If specific action is required, the City Treasurer should determine the course of action that would correct exceptions to move the portfolio into compliance with State law and City policy. Disclosure of exceptions lasting more than 183 days shall be done in the quarterly investment report immediately following the 183 days. Decisions to correct exceptions should not expose the assets of the portfolio to undue risk and should not impair the meeting of financial obligations as they fall due. Any subsequent investments should not extend existing exceptions.

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22 21.0 Glossary of Investment Terms
Active Management Strategy: Investment strategy based on a manager or a team of managers actively managing a fund’s portfolio with the goal of outperforming benchmarks through analytical research, forecasts, and their own judgment and expertise.

Accrued Interest: Coupon interest accumulated on a bond or note since the last interest payment or, for a new issue, from the dated date to the date of delivery.

Agencies: Federal agency securities and/or Government-Sponsored Enterprises, which include: Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Farm Credit Bank (FFCB), Federal Agricultural Mortgage Association (Farmer Mac), Government National Mortgage Association (GNMA), and the Tennessee Valley Authority (TVA).

Annual Comprehensive Financial Report (ACFR): The official annual financial report for the City. It includes government wide and fund financial statements prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section
Asset-Backed Securities (ABS): Securities that are supported by pool of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets.

Bank Deposits: Deposits in banks or other depository institutions that may be in the form of demand accounts (checking) or investments in accounts that have a fixed term and negotiated rate of interest.

Bankers Acceptance (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Basis Points: Refers to the yield on the bonds. Each percentage point of yield in bonds equals 100 basis points (1/100% or 0.01%). If a bond yield changes from

7.25% to 7.39%, that is a
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rate of 14 basis points.
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23 Benchmark: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

Bond Indenture (or Trust Indenture): Written agreement specifying the terms and conditions for issuing bonds, stating the form of the bond being offered for sale, interest to be paid, the maturity date, call provisions and protective covenants, if any, collateral pledged, the repayment schedule, and other terms. It describes the legal obligations of a bond issuer and the powers of the bond trustee, who has the responsibility for ensuring that interest payments are made to registered bondholders.

Broker: A broker brings buyers and sellers together for a commission.

Brokered Certificate of Deposit (CD): Brokered CD is a certificate of deposit that is purchased through a brokerage firm or from a sales representative other than a bank. Brokered CDs purchased through a broker dealer are part of a Master CD that is a negotiable instrument. Political subdivisions are entitled to its own insurance coverage and FDIC limits apply of up to $250,000. They are issued in book entry form to track ownership and use the CUSIP system for identification and trading in the primary and secondary market. Some may have callable options, similar to bonds.

Buy and Hold Strategy: Investments in which management has the positive intent and ability to hold each issue until call or maturity.

Call Option: The terms of the bond contract giving the issuer the right to redeem or call an outstanding issue of bonds prior to its stated date of maturity.

Call Risk: The risk to a bondholder that the bond issuer will exercise a callable bond feature and redeem the issue prior to maturity.

Callable Securities: An investment security that contains an option allowing the issuer to retire the security prior to its final maturity date.

Cash Flow: A comparison of cash receipts (revenues) to required payments (operating expenditures, debt service, etc.)
Certificates of Deposit (CD): Large denomination ($100,000 or more) interest bearing time deposits, paying the holder a fixed amount of interest at specific maturity. Larger-denomination CD’s are
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typically negotiable. Funds usually
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24 cannot be withdrawn before maturity without giving advance notice and normally without a penalty.

Certificate of Deposit Account Registry Service (CDARS): A private CD placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS).

City Treasurer: The Finance Director serves as the City Treasurer, as appointed by the City Manager.

Collateralization: To secure a debt in part or in full by pledge of collateral, asset pledged as security to ensure payment or performance of an obligation. Also refers to securities pledged by a bank to secure deposits of public monies.

Constant Maturity Treasury (CMT): An average yield of a specific Treasury maturity sector for a specific time frame. This is a market index for reference of past direction of interest rates for the given Treasury maturity range Coupon: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

Current Yield: The interest paid on an investment expressed as a percentage of the current price of the security.

CUSIP Number: A nine-digit number established by the Committee on Uniform Securities Identification Procedures that is used to identify publicly traded securities. Each publicly traded security receives a unique CUSIP number when the security is issued.

Custody: A banking service that provides safekeeping for the individual securities in a customer's investment portfolio under a written agreement which also calls for the bank to collect and pay out income, to buy, sell, receive and deliver securities when ordered to do so by the principal.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

Debenture: A bond secured only by the general credit of the issuer.

Delivery versus Payment (DVP): There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus DRAFT 294 of 301
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25 payment is the delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Disallowed Investments: Prohibited investments include any investments not specifically authorized within this policy, inverse floaters, range notes, interestonly strips that are derived from a pool of mortgages; futures, option, all leveraged purchases, reverse repurchases, and speculations on interest rates.

Discount: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale is also considered to be at a discount.

Diversification: Dividing investment funds among a variety of securities offering independent returns.

Duration: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates means falling bond prices, while declining interest rates mean rising bond prices.

Federal Deposit Insurance Corporation (FDIC): The federal agency that insures bank deposits up to $250,000 per deposit at participating banking institutions. To increase consumer confidence in the banking system, the previous $100,000 insurance limit was temporarily increased to $250,000 in 2008, extended to 2013, and then permanently increased on July 21, 2010 with the passage of the Wall Street Reform and Consumer Protection Act.

Federal Funds Rate: The rate of interest at which Federal funds are traded. The Federal Reserve through open-market operations currently set this rate. It is also known as the federal funds target rate or the fed funds rate to guide overnight lending amount U.S. banks. It’s set as a range between an upper and lower limit and influences borrowing and interest rates.

Federally Insured Cash Account (FICA): A proprietary cash management vehicle by StoneCastle Partners. It is an FDIC insured Liquid Structured Bank Deposit Vehicle. A deposit placement security.

Federal Open Market Committee (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents.

The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelin
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26 Government Securities in the open market as a means of influencing the volume of bank credit and money.

Federal Reserve System: The central bank of the United States which consists of a seven-member Board of Governors, 12 regional banks, and 5,700 commercial banks that are members.

Fiduciary Funds: Funds held in a trustee or agency capacity for outside parties.

Government Accounting Standards Board: A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

Interest Rate: The annual yield earned on an investment, expressed as a percentage.

Investment Trust of California: In 2005, the CSAC Finance Corporation and the League of California Cities established the Investment Trust of California (CalTRUST) as a Joint Powers Authority in conjunction with public agencies in California for the purpose of pooling and investing local agency funds.

Liquidity: Refers to the ability to rapidly convert an investment into cash.

Laddered Portfolio: Bond investment portfolio with securities in each maturity range (e.g. monthly) over a specified period (e.g. five years).

Leverage: Investing with borrowed money with the exception that the interest earned on the investment will exceed the interest paid on the borrowed money.

Local Agency Investment Fund (LAIF): A voluntary investment program offering participating agencies the opportunity to participate in a major portfolio which daily invests hundreds of millions of dollars, using the investment expertise of the State Treasurer's Office investment staff at no additional cost to the taxpayer. Investment in LAIF, considered a short-term investment, is readily available for cash withdrawal daily.

Market Average Rate of Return: For purposes of this Policy, the market average rate of return is defined as the average CMT (Constant Maturity Treasury) whose maturity most closely matches the weighted average maturity of the portfolio, or the current period average annual LAIF yield. Such measurements will be undertaken based upon the most recent month’s reported data as shown in the Monthly Investment Report.

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27 Mark-to-Market: The process whereby the book value or collateral value of a security is adjusted to reflect its current fair market value. The City applies fair value adjustments at fiscal year-end in the City’s financial statements in accordance with Government Accounting Standards Board Statement No. 72, “Fair Value Measurements and Application”, which provides the framework for measuring fair value.

Market Risk: Defined as market value fluctuations due to overall changes in the general level of interest rates. Adverse fluctuation possibilities shall be mitigated by limiting the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis, and eliminating the need to sell securities prior to maturity. Also, avoiding the purchase of long-term securities for the sole purpose of short-term speculation mitigates market risk.

Market Value: The price at which a security is trading and could presumably be purchased or sold.

Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase - reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

Maturity: The date the principal or stated value of an investment becomes due and payable.

Medium Term Note: For purposes of this Policy, a medium-term note (MTN) refers to a note payable issued by a Corporation that comes with a maturity date that is within five years.

Money Market Deposit Accounts: These accounts are also referred to as Money Market savings accounts and can offer both savings and checking account. Funds can earn interest while still being able to withdraw or transfer funds. These deposit accounts are FDIC or NCUA insured or fully collateralized if holding government deposits.

Money Market Mutual Fund: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

National Credit Union Administration (NCUA): An independent federal agency that insures deposits at federally insured credit unions, currently up to $250,000.

Nationally Recognized Statistical
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Rating Organization (NRSRO): A credit
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28 rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

Nominee: Registered owner of a stock or bond if difference from the beneficial owner, who acts as holder of record for securities and other assets. Typically, this arrangement is done to facilitate the transfer of securities when it is inconvenient to obtain the signature of the real owner, or the actual owner may not wish to be identified. Nominee ownership simplifies the registration and transfer of securities.

Open Market Operations: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC to influence the volume of money and credit in the economy.

Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

Passive Investment Strategy: A buy and hold investment strategy. Investments are purchased with the intent and capacity to hold them until maturity. At times, market forces or operations may dictate exchanging one security for another or selling a security before maturity. This passive investment strategy is different from one in which securities are purchased with the intent to sell them before maturity at a profit or the use of leverage to enhance yield.

Pooled Investments: Grouping of resources for the advantage of the participants.

Portfolio: Collection of securities held by an investor.

Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks and a few unregulated firms.

Prime Commercial Paper: Short-term IOU, or unsecured money market obligation, issued by prime rated commercial firms and financial companies, with maturities from 2 days up to 270 days. A promissory note of the issuer used to finance current obligations and
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29 Principal: (1) The face amount of par value of a debt instrument. (2) One who acts as a dealer buying or selling for his own account.

Prudent Person Rule: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. As to the City, the prudent investor standard is established by, and specifically described in, California Government Code Section 53600.3. See Section 4.0 of this investment policy.

Public Bank: A corporation, organized as either a nonprofit mutual benefit corporation or a nonprofit public benefit corporation for the purpose of engaging in the commercial banking business or industrial banking business that is wholly owned by a local agency, as specified, local agencies, or a joint powers authority.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Repurchase Agreement (RP or Repo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions.

Exception: When the Fed is said to be doing RP, it is lending money that is increasing bank reserves.

Rule 2A-7 of the Investment Company Act: Applies to all money market mutual funds and mandates such funds to maintain certain standards, including a 13-month maturity limit and a 90-day average maturity on investments, to help maintain a constant net asset value of $1.00.

Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vault for protection.

Secondary Market: A market is made for the purchase and sale of outstanding issues following the initial distribution.

Securities & Exchange Commission (SEC): Agency created by Congress to protect investors in securities transacti
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30 SEC Rule 15C3-1: See uniform net capital rule.

Supranationals: A supranational organization is formed by a group of countries through an international treaty with specific objectives such as promoting economic development. Supranational organizations also issue debt in the United States. The most recognized supranational debt is the International Bank for Reconstruction and Development (IBRD or World Bank), International Finance Corporation (IFC) and Inter-American Development Bank (IADB). The City currently does not allow investments in Supranationals, but it’s an allowable investment option under State law, as outlined in Section 9.0.

Sweep Account: Short-term income fund into which all un-invested cash balances from the non-interest-bearing checking account are automatically transferred daily.

Third-Party Custodian: Corporate agent, usually a commercial bank, who, acting as trustee, holds securities under a written agreement for a corporate client and buys and sells securities when instructed. Custody service includes securities safekeeping, and collection of dividends and interest. The bank acts only as a transfer agent and makes no buy-sell recommendations.

Treasury Bills: A non-interest bearing discount security issued by the U.S.

Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

Treasury Bonds: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of from two to 10 years.

Trustee: (1) All governing bodies of local agencies or persons authorized (city investment officials) to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. (2) A financial institution with trust powers that acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.

Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well
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31 maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

U.S. Government Securities: Securities issued by the U.S. Government and its agencies which are either directly or indirectly backed by the full faith and credit of the United States. U.S. Government securities include Treasury Bills, Notes and Bonds. Agency securities include those issued by the Federal National Mortgage Association, Federal Home Loan Bank, and similar agencies.

Volatility: A degree of fluctuation in the price and valuation of securities.

Yield: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

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