Agenda — Finance and Audit Committee, September 11, 2023 (part 1 of 2)

FINANCE AND AUDIT

STANDING COMMITTEE MEETING
City Hall
130 Cremona Drive, Suite B
Goleta, California
Monday, September 11, 2023
3:30 P.M. – 5:00 P.M.

Conference Room # 1
Kyle Richards, Mayor Pro Tempore
Stuart Kasdin, Councilmember
Robert Nisbet, City Manager
Kristine Schmidt, Assistant City Manager
Luke Rioux, Finance Director
Tony Gonzalez, Accounting Manager
Shawna Stokes, Budget Analyst
Cecilia Rubio, Management Assistant
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__________________________________________________________________________ PUBLIC COMMENT: PUBLIC COMMENT MAY BE PROVIDED IN PERSON, ELECTRONICALLY,

OR BY MAIL
To submit written comments for the Committee’s consideration and inclusion in the public record, email Luke Rioux, Finance Director at: [email protected] up to 12pm, prior to the Monday Standing Committee meeting date. Please include the Agenda Item Number in the subject. This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953. Any member of the public may attend this meeting in person or online. Questions regarding this matter may be addressed to Cecilia Rubio, Finance Management Assistant at: [email protected]. __________________________________________________________________________ AGENDA
I. Public Comment
II. Review of the Annual Comprehensive Financial Report for the Year Ended June 30, 2022 (Rioux) (20 minutes) (Pages 1 - 203)
III. FY 2022/23 – Fourth Quarter (Year-End) Financial Review - Unaudited (Draft) (Rioux) (20 minutes) (Pages 204 – 240)
IV. Monthly Investment Transaction Report (June) – Quarterly Review (Draft) (Rioux) (10 minutes) (Pages 241 - 263)
V. Annual Review and Adoption of City’s Investment Policy (Draft) (Rioux) (10 minutes) (Pages 264 - 301)
VI. Next Meeting – TBD
Americans with Disabilities Act: In compliance with the ADA, if special assistance is needed to participate in a Finance and Audit Standing Committee meeting (including assisted listening devices), please contact the City Clerk's office at (805) 961-7505 or email [email protected]. Notification at least 72 hours prior to the meeting helps to ensure that reasonable arrangements can be made to provide accessibility to the meeting.

ITEM II:
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Agenda AGENDA ITEM X.x

CONSENT CALENDAR
Meeting Date: September 19, 2023
TO: Mayor and Councilmembers
FROM: Luke Rioux, Finance Director
Tony Gonzalez, Accounting Manager
SUBJECT: Annual Comprehensive Financial Report for the Year Ended June 30, 2022
RECOMMENDATION:

Accept the Annual Comprehensive Financial Report for the Year Ended June 30, 2022.

BACKGROUND:

The Annual Comprehensive Financial Report (ACFR) of the City of Goleta for the fiscal year ending June 30, 2022 has been prepared by the City’s Finance Department and complies with principles and standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB), the authoritative body establishing U.S. generally accepted accounting principles for local governments. The FY21-22 ACFR was audited in accordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants, Moss, Levy, and Hartzhiem, LLP (MLH).

While only certain financial statements and schedules are required by state law, other information and elements are needed for consideration of an award for excellence in financial reporting from the Government Finance Officers Association (GFOA), which recognizes the highest standards of financial reporting. As such, the expanded financial statements and other information included in the report are collectively referred to as an ACFR. In addition to allowing the ACFR to be considered for the GFOA award for financial reporting, the financial statements are expanded to enable the community and other interested parties to obtain a better and more complete understanding of the City’s finances and operations.

These reports consist of management representations concerning the finances of the City.

All disclosures necessary to enable an understanding of the City’s financial activities have been included. The City received the highest audit opinion, an unmodified opinion, which is located in the ACFR Financial Section in the Independent Auditor’s Report, provided in Attachment 1. An unmodified opinion indicates that the financial statements fairly present DRAFT 2 of 301
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the financial position of the City of Goleta as of June 30, 2022, and the results of operations, in accordance with generally accepted accounting principles.

In addition to fund-by-fund information presented in the ACFR, also included are government-wide financial statements. The government-wide financial statements include a Statement of Net Position that provides information about the City as a whole, including infrastructure and long-term liability and a Statement of Activities, which illustrates the cost of providing government services.

In summary, the ACFR is organized in three sections: introductory, financial, and statistical.

The Introductory section includes this transmittal memorandum and general information on the City’s government structure and services provided. It includes a list of principal officials, an organizational chart, and the GFOA Certificate of Achievement for Excellence in Financial Reporting for the prior fiscal year.

The Financial section contains the independent auditor’s report on the financial statement audit, the Management Discussion & Analysis (MD&A), basic financial statements, required supplementary information, and combining and individual fund presentations and supplementary information.

The Statistical section includes selected financial and demographic information generally presented on a multi-year basis. This information includes financial trends, revenue capacity, debt capacity, demographics and economic and operating information.

As part of the audit, MLH also reviewed and performed tests of the City’s internal accounting control procedures to determine if there are any material weaknesses or instances of noncompliance. Based on the audit, no instances of non-compliance or material weaknesses were noted.

The Single Audit was not required this fiscal year due to the City not meeting the threshold amount of federal grant fund expenditures of $750,000 or more in FY 2021/22. The City expended approximately $560,194 and has notified the California State Controller’s Office of the exempt status this fiscal year.

DISCUSSION:

ACFR Financial Overview
This year’s audit resulted in no audit adjustments to the City’s financial statements. As of June 30, 2022, the City’s net position totaled $269.25 million, an increase of approximately $11.5 million or 4.5% from the prior fiscal year of $257.73 million. The largest portion of the City’s net position consisted of the City’s net investment of $195.8 million (72.7% in capital assets (i.e., land, buildings, machinery, equipment, and infrastructure). This component represents the total amount of funds required to acquire those assets, less outstanding debt and accumulated depreciation. Additional information DRAFT 3 of 301
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can be found in the Management’s Discussion and Analysis (MD&A) section of the ACFR, provided in Attachment 1.

Citywide Highlights
The City’s overall total revenues from all sources equaled approximately $52.7 million, which was an increase of approximately $3.91 million or 8% from the $48.80 million in revenues the previous fiscal year. The increase is primarily related to transient occupancy taxes. Transient occupancy tax revenues increased by $5.1 million, or 55.2%, in the 2022 fiscal year to $14.34 million. The increase was due to tourism activity returning back to pre-pandemic levels, with higher average daily rates.

The City’s overall total expenditures were $41.18 million for the fiscal year, which was an increase of $6.02 million or 17.1% when compared to last fiscal year. Expenses include a wide range of services such as general government, administration, community development, community services, public safety (police protection services), public works, and capital improvement projects. Public works had an increase of $4.3 million or

34.8%, primarily related to pavement projects.

The unrestricted net position increased by $9 million or 42.0% for a total of $30.6 million (11.4% of total net position) and may be used at the City’s discretion to meet ongoing operating needs.

General Fund Highlights
During the City’s 20th full fiscal year, the General Fund reported total revenues of $37.6 million and total expenditures of $31.05 million, resulting excess revenues over expenditures of approximately $6.55 million. The excess revenue is due to a combination of higher than anticipated revenues and decreased spending due to further department savings and deferred special projects and Capital Improvement Program (CIP) projects supported by the General Fund which will continue into FY 22/23.

Revenues: Actual revenues of $37.6 million received came higher than the Final Budget of $35.8 million by $1.08 million, primarily as a result of higher tax receipts than anticipated. In comparison to FY 19/20, overall revenues increased by $6.6 million. When compared to pre-pandemic levels in FY 18/19 overall revenues increased by $838,335.

The increase in revenues is primarily driven by new cannabis business tax revenues that was mostly experienced in FY 21/22 and gradual increases related to property tax. The City’s largest revenue source, TOT, remained impacted at $9.2 million, about $2.3 million or 20.1% down from FY 18/19 pre pandemic levels of $11.5 million.

Expenditures: Actual expenditures of $31.05 million were under the Final Budget of $42.33 million by $11.29 million in all areas. Lower than anticipated expenditures were recognized by all departments. Various savings were recognized due to staff vacancies, lower expenditures associated with professional and contract services and deferred special and capital projects that are now carried over in FY 22/23. Carryovers from FY 21/22 was approximately $1.9 million.

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Fund Balance: The City continues to maintain sound fiscal integrity and healthy reserves, based upon conservative, prudent, and diligent efforts by the City Council and City Manager. The General Fund’s total ending fund balance was $39.27 million as of June 30, 2022. The ending fund balance amount was more than the final budget projection by $13.57 million, because of lower than anticipated expenditure activity recognized by all departments, and special projects and capital projects that will continue in the next fiscal year. The fund balance categories and amounts at year-end are displayed below:

Fund Balance:

Non-spendable
Prepaid Items $ 26,176
Committed 12,753,580
Assigned 7,006,229
Unassigned

19,482,955
Total Fund Balance $ 39,268,940
When comparing the total audited ending fund balance of $32.79 million to the estimated ending fund balance amount of $32.82 million provided to City Council in September 2021 during the 4th Quarter Financial Review (Unaudited), the amount is slightly lower by $31,381 due to year-end adjustments.

Included in the General Fund’s fund balance categories are City Council’s established fiscal reserve policies for funding Compensated Absences, Risk Management, Equipment Acquisition and Replacement, Public Facilities, City Hall solar removal, Litigation Defense Reserves and a Contingency Reserve set at a minimum of 33% of total budgeted ongoing operating expenditures. These reserve policy amounts are reflected in the “Committed” category. In addition, the City maintained reserves of $170,000 assigned for the CalPERS Unfunded Accrued Liability (UAL) and $333,500 assigned for otherpostemployment benefits (OPEB) UAL, which was transferred into the City’s Section 115 Trusts this current FY 2021/22. There are also approved other assigned fund balance category amounts, which include carryovers of unexpended funds of $1.17 million for special projects and purchase order obligations and $762,774 related to capital improvement projects. The carryover amounts for special projects and capital projects were finalized in October 2021 and have since been included in the FY 22/23 budget. All remaining fund balance is placed in the Unassigned Fund Balance, which stood at $19.48 million at fiscal year-end June 30, 2022.

Gann Spending Limit
Each fiscal year the City Council adopts the Gann Appropriations Limit by resolution during the budget adoption process, which establishes a maximum amount for tax-funded government services. The Gann Appropriations Limit calculation is then reviewed by the DRAFT 5 of 301
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City’s external audit firm as part of the annual audit process. As of June 30, 2022, the City had not reached its Article XIIIB spending limitation. For FY 2021/22 this limit was approximately $67.3 million, with total annual appropriations subject to this limit being $19.53 million. The Independent Auditor’s Report on the Gann Spending Limit calculation can be viewed in Attachment 4.

Other Information
The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the fiscal year ended June 30, 2022. This was the 20th consecutive year the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. Staff believes that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and staff will be submitting it to the GFOA to determine its eligibility for another certificate.

The entire ACFR is available for viewing at City Hall, on the City’s website, and has been distributed to the City Council.

FINANCE COMMITTEE REVIEW:

The Finance and Audit Standing Committee met to review the ACFR and audited financial statements on September 11, 2023.

FISCAL IMPACTS:

There is no fiscal impact associated with this item.

Reviewed By: Approved By:
___________________ _________________
Kristine Schmidt Robert Nisbet
Assistant City Manager City Manager

ATTACHMENTS:

1. Annual Comprehensive Financial Report for June 30, 2022

2. Government Auditing Standards Letter

3. Statement of Auditing Standards Letter

4. Independent Accountant’s Report on Gann Spending Limit DRAFT 6 of 301
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5. Presentation
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ATTACHMENT 1:

Annual Comprehensive Financial Report for June 30, 2022 DRAFT 8 of 301
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Il'~TTROI)IJCTORY SE~TIOI~T
Table of Contents ........................................................................................................................................................................... 1 ' Letter of Transmittal ............. ........................................................................................................................................................ Ill ...

GrganizationChart ....................................... . ...... . ... . ..................................................................................................................... ~ Llst of Princlpal Gf~clals ............. ................................................................................................................................................ xl ' Certificate of Achievement for Excellence in Financial Reporting.. ........................................................................................... xll ,.

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IndependentAuditors' Report ......................................... . ... . ................................................................................ 1 Management's Discussion and Analysis ....................................................................................................................................... 3 Basic Financial Statements:

Government-wide Financial Statements:

Statementof Net Position ........................................... ,,......-_-----------,..___...,,___......._...............__..,......_,._...,_.:_.._:,.-__.:::...:.:. 1~ Statementof Activities ........................................................................................................................................................... 17 Fund Financial Statements:

Governmental Funds:

BalanceSheet ..................................................................................................................................................... . .............. 1 ~ Reconciliation of Governmental Funds-Balance Sheet to the Statement ofNet Positi©n ............................................................................................................................................................ ~ 1 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................................................. 2~ Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities............ ....................................................................................................................................................... 24 Fiduciary Fund:

Statementflf Fiduciary Net Position ................................................................................................................................... 25 Statement of Changes in Fiduciary Net Pflsitiou ........................... ..................................................................................... 2~ Notes to the Basic Financial Statements .................................................................................................................................. 27 RE(,~I.TI~ED SUPPLE~TT.A.L INFOF~ATIO ECTIoI~
Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual:

Gener~.l Fund ......................... .................................................................................................................................................. ~3 GTIPSpecial Revenue Fund ....................................................................................................................... 54 Park DIF Special Revenue Fund ................ . ....................................................................................... 5 5 Active Transportation Program Special Revenue Fund .............................................................................. . ............................ 5 ~ Coronavirus State Local Fiscal Recovery Special Revenue Fund .................... . ............................ . .................. . .................. 5 ~ Federal Transportation Program Special Revenue Fund ......................................................... . ................ . .............................. 5 8 Schedule of Proportionate Share of Net Pension Liability .................................................. . ....................................................... 5 ~ Schedule of Pension Contributions .......................... ................................................................................................................... ~~ Schedule of Changes In tJPEB Llablllty and Related Ratios ............................ . ......................................................................... ~ 1 Scheduleof GPEB Contributions ................................................................................................................................................ ~2 ~UPPI.rEiY~ENTAL I1~FORMATIo1~T SE+~TIOI~
Nonmajor t governmental Funds - Dehnitlflns ............................................................................................................................. b3 Combining Balance Sheet — Nonmajor Governmental Funds ..................................................................................................... ~6 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances— Nonmajor Governmental Funds .......................................................................................... . . . ................................ 74 Schedules of Nonmaor Governmental Funds Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual ..................................................................................................................... 2 STATISTICAL SE~TIoi~T
Financial Trends:

NetPosition by Component .................................................................................................................................................. 132 Changesin Net Position ........................................................................................................................................................ 134 FundBalances of Governmental Funds ................................................................................................................................ 13 ~ Changes in Fund Balances of Goverl2rrlental Funds .............................................................................................................. 13 8 DRAFT 12 of 301

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Revenue Capacity:

Assessed Value and Actual Value of Taxable Pr©pert:y ........................................................................................................ 14{~ Direct and Overlapping Governments Property Tax Rates ................................................................................................... 142 PrincipalProperty Taxpayers .. . ................................................................ . ............................................................................ 144 PropertyTax Levies and Collections .................................................................................................................................... 145 Revenue and Rates of Transit Occupancy Tax ........... . .......................................................................................................... 14~ Principal Transient Occupancy Taxpayers ............................................................................................................................ 147 Debt Capacity;
Ratiosof Outstanding Debt by Type ..................................................................................................................................... 148 Direct and Overlapping Governmental Activities Debt ........................................................................................................ 14~ Computationof Legal Debt ~rlargin ...................................................................................................................................... 15Ú Demographic and Economic Information:

Demographicand Economic Statistics .................................................................................................................................. 152 PrincipalEmployers ...:::........................................................................................................................................................ 15~ Operating Information:

Pull-tliYle and Part-tlme Clty Employees by ~,unctlon ........................................................ . .................................................. 154 OperatingIndicators by Function . .............. . .......................................................................................................................... 15 5 CapitalAsset Stat~st~cs by Function ............................... . .............. . ....................................................................................... 15f DRAFT 13 of 301

CITY COUNCIL
Paula Perotte
Mayor
Kyle Richards
Mayor Pro Tempore
Stuart Kasdin
Councilmember
James Kyriaco
Councilmember
District 2
Luz Reyes-Martín
Councilmember
District 1

CITY MANAGER
Robert Nisbet
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June 23, 2023
To the Honorable Mayor, Councilmembers and Citizens of the City of Goleta:

We are pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of Goleta (City) for the fiscal year ended June 30, 2022. The report was prepared by the City’s Finance Department in conformance with the principles and standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB), the authoritative body establishing U.S. generally accepted accounting principles for local governments and was audited in accordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants.

This report contains management representations concerning the finances of the City, and management assumes full responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. To provide a reasonable basis for making these representations, City management has established a comprehensive internal control framework that is designed to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP).

Because the cost of internal controls should not exceed anticipated benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. To the best of our knowledge and belief, the enclosed information is accurate in all material respects and is reported in a manner designed to present fairly the financial position of the City. All disclosures necessary have been included to enable an understanding of the City’s financial activities.

AUDITED FINANCIAL STATEMENTS
The City’s financial statements have been audited by Moss, Levy, & Hartzheim, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the overall accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation.

The independent auditor concluded, based upon the audit, that there was reasonable basis for rendering an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2022, and that these statements are fairly presented in conformity with GAAP. The independent auditor’s report is located at the front of the financial section of this report.

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This ACFR has been prepared using the financial reporting requirements as prescribed by GASB Statement No. 34. GASB 34 requires that management provide a narrative introduction, overview and analysis to accompany the financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found beginning on page 3.

Report Organization:

The report is organized in three sections: introductory, financial, and statistical.

1. The Introductory section includes this transmittal memorandum and general information on the City’s government structure and services provided. It includes a list of principal officials, an organizational chart, and the Government Finance Officers Associations (GFOA) Certificate of Achievement for Excellence in Financial Reporting.

2. The Financial section contains the independent auditor’s report on the financial statement audit, the Management Discussion & Analysis (MD&A), basic financial statements, required supplementary information, and combined and individual fund presentations and supplementary information.

3. The Statistical section includes selected financial and demographic information generally presented on a multi-year basis. This information includes financial trends, revenue capacity, debt capacity, demographics and economic and operating information.

PROFILE OF THE CITY OF GOLETA
The City of Goleta incorporated on February 1, 2002 as a General Law City under the laws of the State of California. The City of Goleta encompasses approximately 8 square miles in southern Santa Barbara County and has a population of approximately 32,591. The City is adjacent to both the City of Santa Barbara and UC Santa Barbara and is approximately 90 miles northwest from Los Angeles.

Form of Government
The City operates under the council-manager form of government. The City Council is comprised of four members elected at large for staggered four-year terms of office, and one Mayor elected at large to serve a four-year term. Starting in November of 2022, councilmembers will be elected by district for staggered four-year terms of office. A Mayor Pro Tempore is selected by the Council from among its members to serve a one-year term. The City Council serves as the legislative and policy-making body of the City, enacting all laws and directing such actions as are required to provide for the general welfare of the community. The City Manager, appointed by the City Council, serves as the Chief Executive Officer and is responsible to the City Council for administration of all City affairs and the implementation of all policies and ordinances established by the City Council.

The City Attorney serves under contract and is appointed by the City Council. All other staff are appointed by the City Manager.

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City Services
The City provides municipal services through contracts for such services as street, park, and landscape maintenance. The City of Goleta also contracts with the Santa Barbara County Sheriff’s Department for law enforcement services. Fire protection services are provided by Santa Barbara County Fire Department through the Santa Barbara County Fire Protection District which has a service area that includes the City of Goleta. There are approximately 550 acres of parks and open space within City limits. The City owns the Goleta Public Library and assumed direct management and operation of the Goleta Library in FY 2018/19 and created a new Library Zone 4 on behalf of the County of Santa Barbara. Starting July 1, 2019, the City also assumed to provide direct management and operations of the libraries located in the City of Buellton and City of Solvang.

Starting January 1, 2023 the City will provide direct management and operation of the Goleta Valley Community Center.

Budget Process and Budgetary Control
The City Council adopts a two-year budget plan at the beginning of each two-year cycle in conjunction with a two-year strategic plan and adopts an annual operating and capital budget prior to July 1st of each year in conjunction with annual work programs of each of the departments. As such, the adopted two-year budget plan includes the operating and capital budget for the first year of the two-year plan. The operating and capital budget for the second year is adopted the following year as part of the mid-cycle budget review and is referred to as the Mid-Cycle Budget. The adopted budget serves as the foundation for the City of Goleta’s financial planning and control system. All departments of the City submit requests for appropriations to the City Manager. The City Manager uses these requests as a starting point for developing a proposed budget. The Council holds public workshops on the proposed budget and then ultimately adopts a formal budget at a public hearing. The budget is adopted by fund, department, program, and line-item.

The Council periodically reviews the City’s actual financial activity in relationship to the original budget, and as necessary, adjustments are made to ensure that expenditures are not outpacing anticipated revenues. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is at the fund and department level with more stringent control over capital assets and fund balance categories, which are maintained at the line-item level. The City Council must approve amendments or transfers of appropriations between funds or departments as well as items related to capital assets or fund balances. The City Council has delegated authority to the City Manager to approve transfers of appropriations between programs and divisions within a City department and between appropriation units (e.g., salaries and benefits, services and supplies, and capital outlay) within programs, excluding special designation or project appropriations.

Any unexpended appropriation balances for capital projects, one-time special projects, and grant programs that lapse at the end of the fiscal year, unless adopted on a “project-length” basis, are then recommended to be carried forward to the next fiscal year, subject City Manager review and City Council approval.

Internal Controls
The management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or other misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP and GASB. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the costs of a control should not exceed the DRAFT 16 of 301
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benefits likely to be achieved, and the valuation of costs and benefits requires estimates and judgments by management.

As a recipient of State, County, and Federal financial resources, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. The internal control structure is subject to periodic evaluation by management of the City.

ECONOMIC CONDITION AND OUTLOOK
Local Economy
The City of Goleta is comprised of single-family homes, condominiums and apartments with a mixture of retail, light industrial, manufacturing, and service entities providing a diverse tax base for the City. The City of Goleta and its immediate vicinity provide a significant share of the Santa Barbara County South Coast and County’s basic economic activity in the form of educational services, intellectual services, tourism, retail and manufacturing. The City has historically enjoyed a strong economic base resulting in stable property tax revenue, growing transient occupancy taxes (TOT) and diverse sales tax revenues. After facing the fiscal challenges of the COVID-19 pandemic and the related economic impacts, the City of Goleta experienced recovery of its largest revenue sources, Transient Occupancy Tax (TOT) and higher than anticipated sales tax growth. Early indicators suggest the City’s finances are tracking towards solid financial recovery, surpassing original expectations formed in June 2021. The phase out of state and local public health restrictions combined with pent-up demand for consumer spending further bolstered by federal government relief programs facilitated a strong economic recovery in FY 2021/22. However, the economic uncertainties seem far from over heading into FY 2022/23, with continued inflation and supply chain disruptions, elevated energy and fuel prices, Federal Reserve tightening, unforeseen consequences related to future COVID-19 variants, and geopolitical concerns resulting from the war in Ukraine. Thus, the City of Goleta remains attentive to our finances as we look forward to a post pandemic future.

According to the labor market data released by the California Employment Development Department (EDD), Goleta’s annual unemployment rate for calendar year 2021 was 3.9%, down from previous high of 6.3% in 2020 due to the pandemic. At the time of preparing this report, the annual unemployment rate for 2022 was 2.3% for Goleta, which corresponds with pre-pandemic levels. For the same annual 2022 period, the unemployment rate for Santa Barbara County was at 3.5% and California at 4.2%.

Tourism related revenues, such as transient occupancy tax (TOT), generated $14.3 million by the end of FY 2021/22, due to higher average daily rates and average occupancy levels returning to pre-pandemic levels. Pre-pandemic, occupancy rates were on average around 78% with an average daily rate (ADR) around $245/night. For FY 2021/22 occupancy rates were on average around 76%, with ADR around $333. Going forward, TOT is expected to remain volatile as continued uncertainty is anticipated with inflationary factors and other economic conditions.

These types of revenues are vulnerable in certain types of economic downturns.

Property tax revenues continued to remain stable and experienced growth due to inflation adjustment of 2% and transfer of ownerships. During the pandemic, mortgage rates dropped to historic lows and demand for housing remained high with low supply, driving the average and median price of detached single-family home to new historic highs. The average price for calendar year 2022 was $1.5 million and the median price was $1.35 million. Pre-pandemic, for calendar year 2019, the average price was $937,760 and the median was $898,000.

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Sales tax through FY 2021/22 recovered faster than anticipated, and growth was experienced across all major industries, with those specifically impacted by the shutdown orders during the pandemic, such as fuel and service stations and restaurants and hotels. Sales tax revenues received by the general fund were up 13% when compared to FY 2020/21. Going forward, sales tax revenue growth is anticipated to gradually slow down in the next fiscal year.

In summary, the City’s economic climate and fiscal condition continues to be complex with many moving parts. The City’s fiscal situation faces ongoing pressures that forces the City to have a prudent strategy to address current and future operational needs and investments. While the underlying financial foundation of the City remains solid, the impacts of the local economic slowdown along with significant expenditure pressures, including unfunded priorities with capital projects and deferred maintenance, continue to require the City to exercise careful budgeting.

It should be noted, on June 21, 2022, Measure B2022 was placed on the ballot by the Goleta City Council in order to ask the voters to consider a 1% general transaction and use tax, with an operative date of January 1, 2024, which would be a 1% increase to the overall sales tax rate in Goleta. If approved, Measure B2022 would increase Goleta’s sales tax rate from 7.75% to

8.75%, starting January 1, 2024. From the current sales tax rate of 7.75%, only 0.70% is locally returned to Goleta, with 7.05% kept by the State, County and other government agencies. All revenues raised by the new 1% increase would remain in Goleta and would not be shared with the State, County, or any other agency. The increase is currently estimated to add $10.6 million annually to the general fund. At the time of preparing this report, Goleta voters passed Measure B2022 on November 8, 2022. Revenues from this new measure will be reflected in the FY 2023/24 report.

Challenges
Like all government agencies throughout California, the City is faced with increased ongoing annual operating costs and rising retirement related liabilities. For Goleta, some of the significant challenges include increased ongoing funding needs for deferred maintenance items, such as with pavement maintenance, facility and park maintenance, and implementation of major management and master plan documents, such as the Homelessness Strategic Plan, the Bicycle and Pedestrian Master Plan, and the Creeks and Watershed Management Plan and contract service cost. Additionally, major capital improvement program (CIP) projects are projected to remain underfunded and face risk of increased funding gaps due to increased construction costs.

While the City has been successful over the years in balancing these issues with its strategic use of contract staffing and services and having additional one-time savings available, the City will continue to experience rising costs. Additionally, with the uncertainty of significant impacts to revenues in the future years, coupled with ongoing growth in expenditures over the next five years, the City will be challenged. The continued economic uncertainty in the near future with inflation and Federal Reserve action also adds another layer of complexity to the City’s finances.

Long-Term Financial Planning
The City incorporates long-term financial planning into its budget process in several ways. Each year, during the budget process the City Council receives an updated General Fund Five-Year Forecast and CIP Five-Year Forecast that includes all special revenue funds associated with each project. The forecast model used for the General Fund and CIP looks forward five years, rather than ten years, because of the volatile nature of tax revenues in a tourist-based economy, and various one-time special revenue funds associated with development activity making it DRAFT 18 of 301
viii
difficult to predict revenues with any certainty beyond five years. The forecast is used as a tool and maintained by Finance staff. These projections allow management to see what the future could look like given a set of assumptions and are evaluated in the context of whether decisions are sustainable over the long term. In December 2020, Finance staff had prepared a longrange financial forecast for the General Fund going out twenty years. The long-range financial forecast is a tool for strategic decision making and presents further context for balancing shortterm and long-term goals and provides an “order of magnitude” feel for the General Fund’s ability to continue services and preserve fiscal sustainability. In FY 21/22, staff also started preliminary work in developing a CIP, Capital Maintenance, and Other Priorities Funding Plan that provides a pathway to help close the funding gaps in future years, which will be a continued ongoing work effort as information becomes updated and known.

Relevant Financial Policies
The City of Goleta has adopted a comprehensive set of financial policies to provide guidance for all fiscal activities and resource allocation decisions. Some of the major financial policies the City has adopted include the Debt Management Policy, City’s Investment Policy, Purchasing Policy, Capitalization Policy, and Fund Balance Reserve Policies.

Debt Management Policy: The City’s Debt Management Policy contains general guidelines and parameters for issuing and refunding debt, including guiding decisions related to future debt to ensure adequate financial resources are available to support the City’s long-term capital needs.

Investment Policy: The City’s Investment Policy establishes guidelines, strategies, practices, and procedures to be used in investment of public funds in accordance with California Government Code sections 53600-53610, which establish legally permitted investments for local governments statewide. The policy is reviewed, updated if needed and adopted annually.

Capitalization Policy: The City’s Capitalization Policy sets thresholds at $5,000 for assets with a minimal useful life of three years while identifying fixed asset categories as either land, buildings and improvements, infrastructure, furniture and equipment, motorized vehicles, and construction in progress. Additional information can be found in Note 1 – Summary of Significant Accounting Policies in the Notes to the Basic Financial Statements document.

Fund Balance Reserve Policies: The City recognizes the importance of long-range planning in managing the City’s fiscal affairs to provide for stable operations and assure the City’s long-term financial health. The reserves contained in the General Fund play a pivotal role in this strategy.

The reserve policies require a contingency reserve balance of a minimum of 33% of the General Fund’s ongoing expenditures budget. Additionally, other reserve categories have been established for capital equipment, compensated leave, risk management, litigation defense, sustainability, CalPERS pension and Other Post Employee Benefits (OPEB) for retiree health unfunded accrued liability. It should be noted that in FY 21/22, the City has set up Section 115 Trusts for both pensions and retiree health care liabilities and has transferred reserves held to these trusts. Future funding policies will be considered and implemented.

OTHER INFORMATION
Spending Limitation
Article XIIIB of the California Constitution, also known as the Gann spending limit, restricts the amount of “proceeds of taxes” California governments may spend. As of June 30, 2022, the City had not reached its Article XIIIB spending limitation of $67,304,450.

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AWARDS AND ACKNOWLEDGEMENTS
We are very proud of this ACFR and all the City’s award-winning financial reporting publications.

Each publication has been prepared with great care and expertise with the goal of meeting the highest level of financial reporting preparation standards.

GFOA Financial Reporting Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Goleta, California for its annual comprehensive financial report for the fiscal year ended June 30, 2021. This was the 19th consecutive year the City has received this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. Staff believes that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and staff will be submitting it to the GFOA to determine its eligibility for another certificate.

GFOA Budget Presentation Award
The GFOA also awarded a Certificate of Achievement for Distinguished Budget Presentation to the City of Goleta for its Operating and Capital Budgets for fiscal years 2021/22 and 2022/23. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communication device. This award is valid for a period of two years only.

Acknowledgements
The preparation of this ACFR and its timely issuance could not have been accomplished without the hard work and team effort of the Finance Department. We also wish to express appreciation to all other City departments that helped in its preparation.

Respectfully submitted,
_________________ _________________
Robert Nisbet Luke Rioux
City Manager Finance Director
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Citizens of Goleta
City Council
City Manager
General Government
Department Finance Department General Services Department Neighborhood
Services Department
Planning and
Environmental
Review Department Department
Public Works
Police Services
City Attorney
• Sheriff Services*
• Animal Services*
• Enforcement*Parking
• Fire District Liaison
(*Contract)
• Engineering
• Capital Projects
• Streets Maintenance
• Parks Maintenance
• Open Space Mgmt • Street Lighting Maint • Services
Environmental
• Current Planning
• Advance Planning
• Building Services*
• Affordable Housing
• Sustainability
• H2S Liaison
• Parks
• Recreation
• Library
• Community Center • Homelessness
• Emergency Services
• Grants Programs
• ResponseCity Customer
• ManagementFacilities
• Fleet Management • Technology
Information
• Purchasing
• AdministrationFinancial • Budget & Financial • Accounting/AP/AR • Treasury/Debt • Payroll • Business Licenses
• Cannabis Licenses
• RDA Successor
• City Manager • City Clerk
• Community Relations
• Human Resources/
• Risk Management • Development
Economic
By Function
City of Goleta Organizational Chart
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DRAFT 22 of 301
~c~vernment Finanee C~~`~eers Assc~eiatic~n
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financial .et~rt
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DRAFT 23 of 301
I~~II~TAi~~IAL, SE~TI{)l~
DRAFT 24 of 301
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Certified Public Accountants
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City Council of the City of Goleta
Goleta, California
Report on the Audit ©f the Financial statements
t~pinivns
w~e have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Goleta the City}, as of and for the fiscal year ended June 30, X022, and the related notes to the financial statements, which collectively comprise the City'sbancfinancial statements as listed in the table of contents.

In our opinion, the f~nancia.l statements referred to above present fairly, in all material respects, the respective finàii%ià.l position of tl~e governmental activities, each major fund, and the aggregate remaining fund information of City of Goleta, as of June 30, 2022, and the respective changes in financial position for the fiscal year then ended in accordance with accounting principles generally accepted in the United Mates of America.

Basis fvr (~pini©ns
we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained In Government .~uditirag tanr~arr~s, issued by the Comptroller General of the United States.

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

Resp©nsióilities ©• f'1`l~ana~enzentfQr the ,financial Statements IVlanagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of,financial statements that are free from material misstatement, whether due to fraud or error.

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

Auc~itvr's Responsihilities ©r the audit of the inaneial Statements Cur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and G©vernment .~ editing `taradards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. l~~sstatements are considered material if there Is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Goleta's internal control.

Accordingly, no such opinion is expressed.
24~ Pr©cessi©nal Parkway, Suite Zt}5 Santa l~Iaria, CA 93455 Te18o5.925.2579 Fax 8Q5.9~5.2147 mlhcpas.cam BEVERLY HILLS • CLiLVER CITY •SANTA I~iARiA
DRAFT 25 of 301
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of ooleta's ability to continue as a going concern for a reasonable period of time. we are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary ~nfor~nation
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary comparison information for the oeneral and Major Special T~evenue Funds, the schedule of changes in the oPEB liability and related ratios, the schedule of proportionate share of net pension liability, and the schedule of pension contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the +governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the ~ Tnited States of America, which consisted of inquiries of management about the n~~ethods of preparing the info~~ation and comparing the information for consistency with management's responses to our Inqulrles, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. VVe do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
fltlier Information
our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of ooleta's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures In accordance with auditing standards generally accepted in the United States of America. in our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relatio~l to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express are opitlion or provide any assurance on them.. t~tl~er Rep©rung Required by government Auditing Standards in accordance with ~overnn~ent Auditing ,Standards, we have also issued our report dated June 23, 223, on our consideration of the City of Goleta's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control aver financial reporting or on compliance. That report is an integral part of an audit performed in accordance with ~©vernment Auditing Standards in considering the City's internal control over financial reporting and compliance. ~~~ ~. ~ ~~~~ ~~~~~
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June 23, 2023
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MANAGEMENT’S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2022
The information in this section is not covered by the Independent Auditor’s Report but is presented as required supplementary information for the benefit of the readers of the Annual Comprehensive Financial Report (ACFR).

This discussion and analysis of the City of Goleta’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2022. The City encourages readers to consider the information presented here in conjunction with the letter of transmittal (in the Introductory Section) and the accompanying basic financial statements, which follows this section. .

FINANCIAL HIGHLIGHTS
 At the end of fiscal year 2022, the City’s net position totaled $269.26 million, an increase of approximately $11.53 million or 4.5% from the prior fiscal year. Of the total net position, approximately $30.58 million is unrestricted and thus may be used to meet the City’s ongoing obligations and operating expenses for the next fiscal year.
 The City’s total revenue from all governmental activities equaled $52.70 million, an increase of $3.91 million or approximately 8.0% compared to $48.80 million from last fiscal year. The increase is primarily related to transient occupancy taxes.
 Transient occupancy tax revenues increased by $5.1 million, or 55.2%, in the 2022 fiscal year to $14.34 million. The increase was due to tourism activity returning to pre-pandemic levels, with higher average daily rates.
 The City’s total expenditures of all programs equaled approximately $41.18 million, an increase of 17.1% or approximately $6.02 million when compared to the previous fiscal year at $35.16 million. This was mostly due to increases in general government, public safety, and public works spending.  The General Fund reported an ending fund balance of approximately $39.27 million, which was an increase of $6.48 million from the $32.79 million ending fund balance of fiscal year 2021. The increase was due to total revenues exceeding expenditures. The City’s three largest revenue sources, property tax, sales tax, and transient occupancy tax, all saw an increase when compared to the prior fiscal year. While total expenditures were more than the previous fiscal year, expenditures fell short of budget projections due to ongoing staff vacancies and savings in various services and supplies. In addition, expenditure budgeted for capital projects were delayed and will be re-appropriated in the following fiscal year.

USING THIS ANNUAL FINANCIAL REPORT
This annual report contains the City’s Basic Financial Statements, which includes three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

The government-wide financial statements consist of the Statement of Net Position and the Statement of Activities that provide information about the activities of the City as a whole and allow a longer-term view of the City’s finances. The Fund Financial Statements illustrate how City services are financed in the short-term as well as what remains for future spending. They also report the City’s operations in more detail than the Government-Wide Financial Statements by providing information about the City’s most significant funds. The Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. This report contains various references to the section of notes, that provides additional information on the information described.

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Reporting the City as a Whole: The Statement of Net Position and the Statement of Activities One of the most important questions asked about the City’s finances is, “Is the City as a whole better, unchanged, or worse off as a result of this fiscal year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps to answer this question. These statements include all assets, deferred outflows of resources, liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All the current fiscal year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report on the City’s net position and changes in them. The City’s net position, the difference between assets/deferred outflows of resources and liabilities/deferred inflows of resources, is one way to measure the City’s financial health or financial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. Consideration should also be given to other non-financial factors, such as changes in the City’s property tax bases and the condition of the City’s roads, to assess the overall health of the City.

All the City’s basic services are considered to be governmental activities. The Statement of Net Position and the Statement of Activities present information about these Governmental activities, including General Government, Community Development, Community Services (Planning and Environmental Review and Neighborhood Services), Public Safety, and Public Works. Property Tax, Sales Tax, Transient Occupancy Tax, Franchise Fees, and Cannabis Business Tax finance approximately 65% of these activities.

Reporting the City’s Most Significant Funds: Fund Financial Statements The Fund Financial Statements provide detailed information about the most significant funds, not the City as a whole. Included are the General Fund, Goleta Transportation Improvement Program (GTIP), Park Development Impact Fees (Park DIF), Active Transportation Program, Coronavirus State & Local Fiscal Recovery, Federal Transportation Program as well as lesser funds reported collectively as Other Governmental Funds. Some funds are required to be established by State law; however, the City establishes many other funds to help it control and manage money for specified purposes or to demonstrate that the City is meeting legal responsibilities for using certain taxes, grants, and other money. The City currently has just one type of fund, governmental, which uses the following accounting approach.

Governmental Funds focus on how money flows into and out of those funds and the balances left at fiscal yearend that are available for future appropriation. Most of the City’s basic services are reported in governmental funds. These funds are reported using an accounting method known as modified accrual accounting. Under this method of accounting, revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current fiscal period while expenditures are recognized in the accounting period in which the liability is incurred.

The Governmental Fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are more or less financial resources that can be spent in the near future to finance the City’s programs. The relationship (or difference) between governmental activities (reported in the Statement of Net Position and Statement of Activities) and Governmental Funds are described in the reconciliation schedules accompanying the Fund Financial Statements.

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The City as Trustee: Reporting the City’s Fiduciary Responsibilities The City is the trustee, or fiduciary, for certain amounts held on behalf of the Successor Agency to the Goleta Redevelopment Agency as well as money set aside in the Section 115 Pension and OPEB Trusts. The City’s fiduciary activities are reported in separate Fiduciary Fund Statements. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purpose.

Notes to the Basic Financial Statements
The notes provide additional detailed information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found starting on page 27 of this report.

Required Supplementary Information
In additional to the basic financial statements, this report also presents certain Required Supplementary Information (RSI), including the City’s budgetary comparison schedules, schedule of changes in net pension liability and related ratios, schedule of pension constitutions, schedule of changes in net Other Post-Employment Benefits (OPEB) liability and related ratios, and schedule of OPEB contributions. RSI can be found starting on page 53 of this report.

Supplementary Information
This report also presents certain other supplementary information including combining fund statements for the City’s non-major governmental funds, including budget and actual statements. The supplementary information section can be found starting on page 63 of this report.

Statistical Section
Statistical tables regarding financial trends, revenue capacity, debt capacity, demographics and economic information, and operating information can be found starting on page 131 of this report.

THE CITY AS A WHOLE – GOVERNMENT WIDE FINANCIAL ANALYSIS Summary of Net Position
The analysis focuses on the net position (See Table 1) and changes in net position (Table 2) of the City’s governmental activities. The City does not have any business-type activities. Table 1 below summarizes the Statement of Net Position for Governmental Activities as of June 30, 2022, with comparative totals as of June 30, 2021. As previously stated, the net position at fiscal year-end serves as a useful indicator over time whether the City’s financial position is improving or deteriorating.

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Table 1
Summary of Net Position
As of June 30, 2022 and 2021

As of June 30, 2022, the City’s net position totaled $269.3 million, an increase of $11.5 million or approximately

4.5% in comparison to the prior fiscal year. The largest portion of net position consisted of the City’s net investment of $195.8 million (72.7%) in capital assets (i.e., land, buildings, machinery, equipment, and infrastructure) less deprecation and any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to its community. The change in the net position can be caused by all elements of the financial statements, which include the assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Assets can primarily be affected by its current assets such as cash and investments and investments in capital assets. In this fiscal year, total assets experienced an increase of $13.8 million or 4.9% for total of $294.9 million and was primarily due to higher cash and investment balances at fiscal year-end. The increase is due to a combination of increased revenues and less expenditures, increasing the overall cash and investment balances.

The City’s total liabilities decreased by approximately $447,000 or -1.8% for a total of $24.5 million. Within this category, the City’s current and other liabilities increased by $5.2 million or 111.1% due to a $2.2 million increase in accounts payable due to timing of processing fiscal year-end invoices and unearned revenue of $3.05 million, 2022 2021
Assets:

Current and other assets $ 89,316,074 $ 74,963,997
Capital assets 205,577,607 206,120,737
Total Assets 294,893,681 281,084,734
Deffered Outflow of Resources:

Deferred pension 1,799,404 1,733,485
Deferred OPEB 316,055 317,174
Total Deferred Outflow of Resources: 2,115,459 2,050,659 Liabilities:

Current and other liabilities: 9,894,060 4,687,688
Long Term Liabilities:

Due in one year 1,167,604 1,160,326
Due in more than one year 13,393,296 19,054,002
Total Liabilities 24,454,960 24,902,016
Deferred Inflows of Resources:

Deferred pension 878,165 25,221
Deferred OPEB 2,418,482 476,139
Total Deferred Inflow of Resources 3,296,647 501,360
Net Position:

Net investment in capital assets 195,800,347 196,120,737 Restricted 42,881,716 40,085,550
Unrestricted 30,575,470 21,525,730
Total Net Position $ 269,257,533 $ 257,732,017
Governmental Activities
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primarily related to the Coronavirus State and Local Fiscal Recovery funds (SLFRF) received by the City but not recognized yet. Total long-term liabilities due in more than one year had a decrease of $5.5 million or -28.9% due to significant decreases in OPEB liability and net pension liability.

The restricted net position increased by approximately $2,796,000 or -7.0% for a total of $42.88 million (15.9% of total net position), which are funds subject to external restrictions on how the funds may be used, such as development impact fees programmed for capital projects. The unrestricted net position increased by $9.0 million or 42.0% for a total of $30.6 million (11.4% of total net position) and may be used at the City’s discretion to meet ongoing operating needs.

Changes in Net Position
The following table provides a summary of how the City’s net position changed from the prior fiscal year and summarizes the Statement of Activities for Governmental Activities for the fiscal year ended June 30, 2022 with comparative totals for the fiscal year ended June 30, 2021. Generally, it indicates whether the financial health of the City as a whole is better, unchanged, or worse at June 30, 2022, in relation to a year earlier. For the fiscal year ended June 30, 2022, the total net position increased by $11.5 million or 4.5%, which shows the City’s financial health is better than the previous fiscal year.

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Table 2
Changes in Net Position
Fiscal Year Ended June 30, 2022 and 2021

Revenues: The City’s total revenues were $52.7 million for the fiscal year ended June 30, 2022, an increase of approximately $3.9 million or 8.0% when compared to last fiscal year. Approximately 73% of the City’s revenue comes from some type of tax revenue including property, sales, transient occupancy taxes (TOT) and other taxes, totaling $38.4 million this fiscal year. This is an increase of approximately $6.8 million when compared to the last fiscal year. This increase is primarily due to the City’s transient occupancy tax returning to pre-pandemic levels, which is generated from hotel stays. The City receives 12% of the total taxable hotel revenue within city limits.

California’s stay at home order was lifted at the end of June 2021, and hotel occupancy rates increased along with higher hotel prices. The other 27% of revenues comes from fees charged for services, development impact fees, state, local and federal grants and contributions, and investment earnings. 2022 2021
Revenues
Program Revenues:

Charges for services $ 2,676,453 $ 2,056,659
Operating contributions and grants 5,364,218 2,808,072
Capital contributions and grants 5,381,590 11,435,184
General Revenues
Taxes:

Property taxes levied for general purposes 8,299,838 7,578,502 Sales and use taxes 10,733,246 9,391,156
Transient occupancy tax 14,341,129 9,239,079
Franchise taxes 1,577,968 1,478,848
Other taxes 3,437,524 3,935,165
Fines and Forfeitures 169,201 119,026
Use of money and property (314,219) 310,821
Other 1,036,124 445,183
Total Revenues 52,703,072 48,797,695
Expenses
General government 7,637,311 6,552,687
Community development 1,014,887 463,691
Community services 7,051,170 8,394,651
Public safety 8,695,216 7,262,255
Public works 16,520,360 12,255,501
Interest on long-term debt 258,610 227,333
Total Expenses 41,177,554 35,156,118
Change in Net Position $ 11,525,518 $ 13,641,577
Beginning Net Position 257,732,015 244,090,438
Ending Net Position $ 269,257,533 $ 257,732,015
Governmental Activities
DRAFT 32 of 301
- 9 -
Expenses: The total cost of all programs was $41.18 million for the fiscal year ended June 30, 2022, an increase of $6.02 million or 17.1% when compared to last fiscal year. Expenses include a wide range of services such as general government administration, community development, community services, public safety (police protection services), public works and interest on long-term det related to the IBank financing for City Hall building. The increase in expenditures is largely due to increases in general government, public safety, and public works spending. Public works had an increase of $4.3 million or 34.8%, primarily related to pavement projects.

The sources of the City’s major types of revenue and the areas where such resources are used are shown below in the charts below.

City’s Major Revenue Sources and Expenses by Type
(See Table 2)
DRAFT 33 of 301
- 10 -
Governmental Activities
Table 3 presents the cost of each of the City’s major programs, General Government, Community Development, Community Services, Public Safety, Public Works, as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions.

Table 3
Net Cost of Governmental Activities
Fiscal Year Ended June 30, 2022
 General Government expenses comprise approximately 18.5% of the governmental expenses and include City Council, City Manager, City Clerk, City Attorney, Community Relations, Support Services, Finance, and Risk Management. Charges for services and other fees partially offset the cost of this program.

Total Cost of Net Cost of
Services Services
General Government $ 7,637,311 $ (4,518,146)
Community Development 1,014,887 387,277
Community Services 7,051,170 (5,446,964)
Public Safety 8,695,216 (7,981,078)
Public Works 16,520,360 (9,937,772)
Interest on long-term debt 258,610 (258,610)
Totals $ 41,177,554 $ (27,755,293)
DRAFT 34 of 301
- 11 -
 Community Development and Community Services expenses comprise approximately 2.5% and

17.1%, respectively, of the governmental expenses. Related fees and charges for services partially offset the cost of this program. Community Development reflects economic development costs and community development block grant program. Community Services reflects activities related to Planning, Building and Safety, Library, and the Neighborhood Services department.  Public Safety expenses comprise approximately 21.1% of the governmental expenses and reflect the police services contract with the County of Santa Barbara’s Sheriff’s Office.  Public Works expenses comprise approximately 40.1% of the governmental expenses. Revenues from charges for services, operating and capital contributions and grants offset the cost of this program.

Public Works includes administration, engineering, facilities maintenance, parks maintenance, street maintenance, solid waste, street lighting, and capital improvement activities.  Interest on long-term debt reflects the interest expense related the IBank financing of $10 million related to the purchase of the City Hall property of $11.5 million. The lease will be repaid in semiannual payments for a term of 30 years through August 1, 2050 at an interest rate of 2.64%.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At the fiscal year-end the City’s governmental funds reported a combined fund balance of $76.5 million, an increase of $6.2 million or 8.8% over the prior fiscal year. The General Fund increased $6.5 million or 19.7%.

The GTIP Fund experienced a decrease of $569 thousand or -4.0% because of developer impact fees collected for the fiscal year, and projects carried over from the prior fiscal year. The Park DIF Fund Balance decreased by $671 thousand or -7.4%, due to developer impact fees collected and spent for the fiscal year, which are programmed towards park related capital projects. The Active Transportation Program Fund increased $1.8 million or 99.2% change from the prior fiscal year due to the receipt of grants that were originally expected in the prior fiscal year. The Federal Transportation Program (FTP) Fund accounts for federal grant funds for transportation projects and primarily reflects the Federal Highway Bridge Program (HBP) activity for the Hollister Avenue Bridge Replacement project. The fund balance of the FTP Fund increased by $1,207 or 1.2% change from the prior fiscal year mainly due to timing of grant revenue receipts received. A new major fund was established for the Coronavirus State & Local Fiscal Recovery funds, which has an asset balance of $5.9 million and reflects the total allocation provided from the federal government when the American Rescue Plan Act (ARPA) was signed. The City has elected the standard allowance of $10 million for revenue loss due to the COVID-19 pandemic and has programmed those funds towards governmental services and City projects. Overtime, the balance will deplete as the funding is utilized on various City programs.

General Fund Budgetary Highlights
Over the course of the fiscal year, the City Council revised the City budget several times. These budget amendments fall into three categories: 1) changes made during the fiscal year for unanticipated revenues and costs, 2) increases in appropriations to prevent budget overruns, and 3) carry over budgets for one-time use for capital projects and special projects.

Revenues: Actual revenues of $37.60 million received came higher than the Final Budget by $1.80 million, primarily because of higher tax receipts than anticipated with property tax, sales tax, and transient occupancy tax.

Overall actuals revenues increased $6.6 million or 21.4% when compared to the prior fiscal year. The following discussed key revenue variances, when compared to the budget and prior fiscal year actuals.

Property tax exceeded budgeted projections by 5.6% or 5.1% when compared to the prior fiscal year actuals.

Property tax experienced higher assessed valuations due to a combination of a 2% inflation adjustment on assessed values for all property types and changes in the assessed value due to transfer of ownership. In addition, the property transfer tax revenues from property sales remained elevated above $300,000 for the fiscal year. During the start of the pandemic mortgage rates dropped to historic lows and the demand for housing remained high with DRAFT 35 of 301
- 12 -
low supply, driving the average and median price of housing up to historic highs. The median price of a detached single family residential home was at $1.1 million in calendar year 2021 an increase of 18.41% and $1.4 million by February 2022, an increase of 24.50%.

Sales tax exceeded budgeted projections by 5.8% or 13% when compared to the prior fiscal year actuals. Sales tax growth was experienced across all major industries, and specifically those impacted by the shutdown orders during the pandemic, such as fuel and service stations and restaurants and hotels.

Transient occupancy tax (TOT) is the largest general fund revenue source and exceeded budgeted projections by

10.3% or 55.2% when compared to the prior fiscal year actuals. TOT revenues exceeded pre-pandemic revenues by approximately 24%, when compared to the $11.6 million received in FY 18/19. The City receives 12% of the total taxable hotel revenue within City limits. The significant increase was due to the “return to travel”, as California’s stay at home order was lifted at the end of June 2021, and hotel occupancy rates increased along with higher hotel prices.

Expenditures: Actual expenditures of $31.05 million were under the Final Budget amounts by $11.29 million or 26.7% under budget. This was primarily due to less spending activity experienced across the departments due to staff vacancies, deferred projects, and program spending that will be carried forward into the next fiscal year.

Additionally, various service and supplies line items or time and material related contracts were not fully spent.

Approximately $2 million was related to a pavement project and $3.2 million for capital improvement program projects that will be reappropriated in the following fiscal year.

Appropriations: Variances between the Original and the Final budgets are primarily due to the inclusion of continuing appropriations for special projects from the prior fiscal year, as well as new appropriations made by the City Council during the fiscal year. New budget appropriations were the result of higher than anticipated costs after receiving bids and proposals, or unanticipated expenditures. All new appropriations get evaluated if onetime or ongoing, and analyzed against the City’s unassigned fund balance, that may be available. Some significant budget appropriations included additional pavement budget of $3.9 million, additional $800,000 to incorporate salary and benefit updates from adopting a new memorandum of understanding with the union and $1.3 million towards construction cost for the Goleta Valley Community Center. Additionally, revenues were projected conservatively due to the pandemic and volatility at the time of adopting the original budget. Adjustments were recommended by mid-year (second quarter) and third quarter when actual data was known.

Ending Fund Balance: The General Fund Ending Balance was $39.27 million as of June 30, 2022. This amount was higher than the final budget projection by $13.57 million or higher by $6.5 million when compared to the prior fiscal year. This increase was a result of higher revenues and less expenditure activity experienced in the fiscal year as described above. The table below summarizes the fund balance by classification:

Fund Balance:

Non-spendable:

Prepaid Items $ 26,176
Committed 12,753,580
Assigned 7,006,229
Unassigned 19,482,955
Total Fund Balance $ 39,268,940
DRAFT 36 of 301
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The Council has established fiscal policies and funding amounts for Compensated Absences, Risk Management, Equipment Acquisition and Replacement, Public Facilities, Sustainability, and Litigation Defense reserves. These fiscal policies also specify that a minimum of 33% of total ongoing operating budget would be maintained as a Contingency Reserve. Based upon final budgeted General Fund expenditures and transfers, the Contingency Reserve is $10.1 million. Additionally, the City Manager and City Council have approved the continuing designation of unexpended funds of $6.58 million assigned for special projects into the next fiscal year. Per Council direction, all remaining fund balance is to be placed in the unassigned fund balance.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
Capital assets include public domain (infrastructure) general fixed assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains. These are assets that are used in the operations of the City’s functions. The City has valued these assets at $350.18 million at the end of fiscal year 2022. After accumulated depreciation, the net book value of these infrastructure improvements totals $205.6 million.

Additional information on the City of Goleta’s capital assets can be found in Note 1F and Note 4.

Table 4
Capital Assets at Fiscal Year-End
(Net of Depreciation)
Long-Term Debt
At fiscal year-end the long-term debt reported by the City included compensated absences, successor agency settlement agreement, Ibank lease, other post-employment benefits (OPEB) liability (retiree health care) and net pension liability. The following table summarizes the long-term debt for the fiscal year ended June 30, 2022.

Additional information on the City of Goleta’s long-term debt can be found in Notes 1I, 1K, 1L, 5, 6, 7, 8 and 9.

Table 5
Long-Term Debt

Asset Type
Land $ 48,016,810
Infrastructure and right of way 258,432,892
Construction in progress 33,873,212
Vehicles 791,649
Furniture and equipment 1,340,544
Building and improvements 7,728,584
Total capital assets 350,183,691
Less depreciation 144,606,084
Capital Assets net of Depreciation $ 205,577,607
Governmental Activities
Compensated absences $ 815,213
Successor Agency settlement agreement 2,327,823 Ibank lease payable 9,777,260 OPEB liability 634,626
Net pension liability 1,005,978
Total $ 14,560,900
DRAFT 37 of 301
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ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The fiscal year 2021/22 economic indicators point to a solid financial recovery, surpassing original expectations for FY 2022/23. The phase out of state and local public health restrictions combined with pent-up demand for consumer spending further bolstered by the federal government relief programs facilitated a strong economic recovery in 2021. However, the economic uncertainties seem far from over with continued inflation and supply chain disruptions, elevated energy and fuel prices, Federal Reserve tightening unforeseen consequences related to future COVID-19 variants, and geopolitical concerns resulting from the war in Ukraine. The City’s primary revenue sources (sales tax, property tax, TOT, cannabis business tax and franchise fees) are all potentially affected by fluctuations in the economy, with TOT, sales tax and cannabis business tax affected the most. The cannabis business tax was a new revenue source for the City and continues to be extremely volatile and started to experienced declines at the end of June 30, 2022. In a normal fiscal year, those five primary revenue sources provide funding for approximately 90% of City operations. Management continues to monitor these revenues closely and regularly for any trends that could negatively impact or improve the City’s financial condition. To hedge against these uncertainties, staff continue to budget conservatively and ensure reserves are funded at policy level and forecast various revenue scenarios for a potential economic downturn.

On June 21, 2022, the City Council adopted an operationally balanced budget of $81.21 million for FY 2022/23.

Of that amount, $44.1 million is related to the General Fund. The adopted budget restored existing levels of services that were temporarily reduced due to the financial impacts and economic uncertainty caused by the COVID-19 pandemic, including programs and projects that were deferred. Additionally, the budget addressed policy direction provided in the City’s Strategic Plan and each department’s annual work program. Updates to personnel to address critical staffing deficiencies in departments that had continued ongoing workload impacts prior to the pandemic were also programmed. This included adding an additional 15.75 full-time equivalent (FTE) positions for a total of 115.78 FTEs. When including the new positions and vacancies at the time of adoption, the City had approximately 27.00 vacant positions to start the new fiscal year.

As we look forward, Goleta is faced with continued challenges with filling staff vacancies and addressing unfunded priorities, which include a backlog of deferred maintenance and implementation of master plan and management plan documents and related unfunded capital improvement program (CIP) projects. One of the major deferred maintenance items included the additional pavement budget needed of approximately $3.3 million on top of the current budget of $2.5 million to help maintain average pavement condition index (PCI) levels of 67. Some of the master plan and management plan documents include the Homelessness Strategic Plan, the Bicycle and Pedestrian Master Plan, and the Creek and Watershed Plan. At the time, the estimated unfunded CIP amount was $104 million. During FY 2021/22, the City held workshops and conducted polling on evaluating long-term revenue enhancement options to help address the City’s unfunded priorities. Staff continued its analysis with consultants on the feasibility of various tax measures and options, and ultimately City Council approved on June 21, 2022, to place Measure B2022 (a 1 % general transaction and use tax) with an operative date of January 1, 2024, on the ballot for the November 8, 2022, election. The tax measure was estimated to generate $10.6 million annually to the general fund. At the time of preparing this report, Goleta voters passed Measure B2022, with

64.39% voting in favor of the tax. Revenues from this new measure will be reflected in the FY 2023/24 report and will go to help ensure the long-term fiscal sustainability of the City of Goleta and its community.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT STAFF
This financial report is designed to provide Goleta residents, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the Finance Department, City of Goleta, 130 Cremona Dr. Suite B, Goleta, California 93117, (805) 961-7500 or email [email protected]. Additional information can also be found on the City’s website at www.cityofgoleta.org.

DRAFT 38 of 301
• ~ . ~ . ~, ~
DRAFT 39 of 301

CITY GF GC)LETA
STATEMENT t~F NET POSITION
June 34, 2422
Governmental
~CtlyltleS
ASSETS:

Cash and ~nvestmenis $ 7$,527,458
Receivables:

Accounts $,633,321
Interest 72,251
Deposits 2,455,156
Prepaid items 28,288
Capital assets:

Non Depreciable:

Land 48,016,814
Rights of way 11,395,313
Construction in progress 33,873,212
Depreciable:

Infrastructure 247,037, 579
Vehicles 791,649
Furniture and equipment 1,340,544
Buildings and improvements 7,728,584
Accumulated depreciation (144,606,484}
Total assets 294,893,681
IiEFEI~~RET~ C~LTTFLS CAF RESGITCES:

Deferred pension 1,799,444
Deferred OPEC 316,455
Total deferred outflows of resources 2,115,459
LIABII.~ITIES:

Accounts payable 4,759,888
Accrued salaries and benefits 428,853
Retentions payable 106,453
Interest payable 1®7,554
Deposits payable 1,445,892
Unearned revenue 3,445,824
Noncurrent liabilities:

Due within one year 1,167,644
Due in more than one year 11,752,692
OPEB liability 634,626
Net pension liability 1,005,97$
Total liabilities 24,454,964
DEFE~~t.EEI) IFLtJS t~F ~~ES~}IJR.CES:

Deferred pension 878,165
Deferred OPEB 2,418,482
Total deferred inflows of resources 3,296,647
NET PC)SITIIJ►1~:

Net investment in capital assets 195,800,347
Restricted for:

Public worl~s 34,497,644
Community development 10,810,280
Community services 1,573,832
Unrestricted 34,575,474
Total net position $ 269,257,533
Thenatesto basic fïnancial statements are an integral parí of this statement. 16 DRAFT 40 of 301
CITY aF GaLETA
STATE1~EhTT {~F ACTIVITIES
For the Fiscal Year Ended June 30, 2022
Net {Expenses)
Revenue and
Changes in
Program Revenues Net Position
Aerating apital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Governmental activities:

General government $ 7,637,311 98,700 ~ 3,020,4b5 ~ - ~ (4,518,146} Community development 1,014,887 1,103,385 - 298,779 387,277 Conununity services 7,051,170 b,704 1,S81,ó33 15,$69 {5,446,964) Public safety 8,b95,21ó - - 714,138 {7,981,078)
Public works 1ó,520,3ó0 1,467,ób4 762,120 4,3S2,8Ú4 {9,937,772) Interest on long-term debt 258.61 ~ - - - (2S8,ó10)
Total governmental activities ~ 41,177,554 $ 2,676,453 5,364,218 $ 5,381,S9ú {27,755,293} General Revenues
Taxes:

Property taxes $,299,838
Sales and use taxes l0,733,24ó
Transient lodging tax 14,341,129
Franchise fees 1,S77,9ó8
~}ther taxes 3,437,524
Fines and forfeitures ló9,201
Use of money and property (314,219}
Other general revenues 1,036,124
Total general revenues 39,280,811
Change in net position 11,525,518
let position, beginning of fiscal year 257,732,015
Net position, end of fiscal year $ 269,257,533
The notes to basic financial statements are an integral part of this statement. 17 DRAFT 41 of 301
CITY OF G©EFTA

GQVERNMENTAL FUNDS

BALANCE SHEET
June 34, 2022
ASSETS:

Cash and investments
Receivables:

Accounts
Interest
Deposits
Prepaid items
Due from other funds

TQTAL ASSETS

LIABILITIES, I)EFERREI) INFLOWS OF
RESOURCES, AND FUND BALANCES:

LIABILITIES
Accounts payable
Accrued salaries and benefits
Retentions payable
Deposits payable
Unearned revenue
Due to other funds

TQTAL LIABILITIES

DEFEND INFLOWS QF RESOURCES
Unavailable revenues

TOTAL DEFE D INFLQWS

QF RESQURCES

FUND BALANCES
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCES (DEFICITS}

TQTAL LIABILITIES, DEFERRED INFLQWS OF

RESOURCES, AND FUND BALANCES
Special Revenue Funds
Active
General Transportation
Fund GTIP Park I)IF Program
$ 36,520,237 ~ 11,905,361 ~ 8,563,565 ~ -
4,429,597 - - 40,000
36,604 11,055 7,965 -
50,000 2,005,156 - -
26,176 - - -
2,544,997 - - -
$ 43,607,611 ~ 13,921,572 $ 8,571,534 $ 40,000
$ 2,613,177 $ 341,588 $ 110,602 $ -
363,825 - - -
34,453 - 24,784 -
1,295,392 - - -
32,224 - - -
4,338,671 341,588 135,38b 14,755
- - - 40,000
- - - 40,00©
26,176 -
- 13, 5 79,984 8,436,144 -
12,753,580 -
7,006,229 -
19,482,955 - - {14,755}
39,268,940 13,579,984 8,436,144 (14,755)
~ 43,647,611 $ 13,921,572 $ 8,571,530 $ 40,004
The notes to basic financial statements are an integral part of this statement. 18 DRAFT 42 of 301
Special Revenue Funds
Coronavirus Federal Other
State c~ Local Transportation Governmental
Fiscal Recovery Pr©gram Funds Totals
2,9bó,995 ~ - ~ 18,570,900 $ 78,527,058
2,9ób,995 254,067 942,662 8,633,321
- - 16,627 72,251
- - - 2,055,156
- - 2,112 28,288
- - - 2,544,997
~ 5,933,990 $ 254,067 19,532,301 ~ 91,861,071
~ - $ 100,253 $ 1,594,268 $ 4,759,888
- - 65,028 428,853
- - 47,216 106,053
- - 150,500 1,445,892
2,966,995 - 46,ó05 3,045,824
- 257,226 2,273,016 2,544,997
2,966,995 357,479 4,176,633 12,331,507
2,966,995 - - 3,OOb,995
2,966,995 - - 3,00b,995
- - 1,545 27,721
- - 17,857,048 39,873,176
- - - 12,753,580
- - - 7,006,229
- {103,412} (2,502,925} 16,861,863
- (103,412) 15,355,668 76,522,569
$ 5,933,990 $ 254,067 $ 19,532,301 $ 91,8b1,071
~
DRAFT 43 of 301
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DRAFT 44 of 301
CITY Q~ ~~LETA
RECC►NCILIATIC~N t~~ THE ~C~VE~;NMENTAL FUNDS -BALANCE SHEET T{~ THE STATEMENT ~F NET Pt~SITIt~N
June 34, 2422
Total fund balances - goverl~mental funds $ 7b,522,569
In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation.

Capital assets at historical cast ~ 3 50,183,b91
Accumulated depreciation { 144,64b,484}
Net 245,5 77,ú4I
Certain revenues in the governmental receivables are unavailable because they cannot be used to meet current financial obligations. In the Statement of Net Position, revenues are recognized when earned. 3,046,995
In gover~r~mental funds, interest on long-term debt is not recognized until the period in which it matures and is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. { 147, 5 ~ 4} Long-term liabilities: In gover~~mental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-ter~~ liabilities, are reported.

Long-term llablllties relating to governmental activltles consist of:
+Compensated absences payable ~~ 15,213}
Successor Agency settlement agreement {2,327,823}
Capital lease payable e,777,2ú4}
Net OPEB liability {ú34,ú2b}
Net pension liability ~ 1,445,978}
Total (14,Sú4,904}
In gover~r~mental funds, deferred outflows and inflows of resources relating to pensions and OPEB are not reported because they are applicable to future periods.

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

Deferred outflows of resources relating:
to pensions $ 1,799,444
to ÚPEB 31 b,455
Deferred inflows of resources relating:
to pensions (878,165}
to OPEB (2,418,482}
(1,181,188}
Total net position -governmental activities $ 269,257,533 The notes to basic financial statements are an integral part of this statement. 21 DRAFT 45 of 301

CITY OF OOLETA
~~VERNI~iENTAL FUNDS
STATEMENT ~F REVENUES, EXPENDITURES, AND CHANGES IN FLTNI.) BALANCES For the Fiscal Year Ended June 30, 2022
Special Revenue Funds
Active
teneral Transportation
Fund OTIP Parr I)IF Program
REVENUES:

Taxes 34,805,610 ~ - - $ -
Intergovernmental 53,470 - - 1,815,379
Charges for services 1,412,413 - - -
Licenses and permits 515,712 - - -
Fines and forfeitures 168,350 - - -
Use of money and property { 105,800) {70,229) {50,901) - Developer fees - 1,232,026 - -
Donations 61,948 - - -
Dtiier 68 7,07 7 - - -
Total revenues 37,598,780 1,161,797 {50,941) 1,815,379
EXPENDITURES:

Current:
teneral government 8,920,270 - - -
Public safety 8,470,638 - - -
Public works 7,525,226 4,860 - -
Conununity development 106,184 - - -
Community services 5,289,443 - 371,434 -
Capital outlay 251,641 1,726,776 248,545 -
Debt service:

Principal 222,740 - - -
Interest 261,060 - - -
Total expenditures 31,047,202 1,731,636 619,979 -
Excess of revenues over
{under) expendltLlreS 6,551,578 (569,839) (674,884) 1,$15,379 ©TREK FINANCING SOURCES {USES)•
Transfers in 24,744 - - -
Transfers out { 140,044) - - -
Total other financing sources {uses) {75,296} - - -
Net change in fund balances 6,476,282 (569,839) {670,884) 1,815,379 Fund balances (deficits) -July 1 32,792,658 14,149,823 9,147,424 (1,834,134) Fund balances (deficits) -June 30 $ 39,268,940 13,579,984 $ 8,436,144 $ { 14,755) The notes to basic financial statements are an integral part of this statement. 22 DRAFT 46 of 301
Special Revenue Fends
oronavirus Federal tither
Mate &Local Transportation Governmental
Fiscal Recovery Program Funds Totals
~ - ~ - $ 3,068,383 ~ 37,873,993
- 254,467 4,239,848 ó,3b2,724
- - 1,264,044 2,676,453
- - - 515,712
- - 851 169,201
- - (87,289) {314,219)
- - 110,738 1,342,764
- - 11,377 73,325
- - X49,04 ~ 1,~~6,1~4
- 2S4,4ó7 8,9Só,955 49,736,077
- - 444 8,920,674
- - l97,ó47 8,ó68,28S
- - 3,822,377 11,3S2,4ó3
- - 948,743 1,414,887
- - 2,161,318 7,822,195
- 252,860 2,8l7,ó89 5,297,511
- - - 222,740
- - - 261,064
- 252,860 9,948,138 43,559,815
- 1,247 {9S 1,183) ó,176,262
- - 100,404 124,704
- - (24,744) (124,744)
- - 7S,29ó -
- 1,247 {875,887) 6,176,262
- {144,ól9} ló,231,555 70,346,307
~ - ~ { 143,412) ~ 1S,355,ó68 $ 76,522,569
23 DRAFT 47 of 301
~~~~ ~~ ~~~~~~
RECOCILIATIÚN CAF THE STATEIVIENT CaF
~;EVEIt1ES, EPENI3ITiJ.ES, AID CHAI~C~ES I FLJ1I~ I3AL~1~ICES C)F C~C~VEF.~dMEI~1TAL F~.TI~DS T{) THE ~TATEI~IEI~T ~F ACTI~TITIES For the Fiscal Year Ended June 30, 2022
Total net change ïn fund balances -governmental funds
Capital assets are reported in governmental funds as expenditures. However, ïn the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. Thïs ïs the amount by which depreciation expense X5,840,641) exceeds additions to capital assets of X5,297,511.

In the statement of activities, compensated absences are measured by the amounts earned during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). Thïs fiscal year, vacation earned exceeded the amounts used by X6,990.

In governmental funds, repayments of long-term liabilities are reported as expenditures. In the government-wide statements, repayments of long-term liabilities are reported as reductions of liabilities.

In governmental funds, interest on long-term debt is recognized in the period that ït becomes due. In the government-wide statement of activities, ït ïs recognized in the period that ït is incurred. IJnmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period was:

In governmental funds, ~JPEB costs are recognized when employer contributions are made.

In the statement of activities, C~PE~ costs are recognized on the accrual basis. This fiscal year, the difference between accrual-basis i~PEB costs and actual employer c©ntrïbution was:
_ _ . . _,
. . ,~ • ` ~ . +~ . - . « . r ' ~ - ,~ . . ~ ` ~ ~
. ~ a. _ - - : ~ . • ` • ,: i . r . . .~, ~ . . . .
..
are recognized when earned.

In governmental funds, pension costs are recognized when employer contrïbutïons are made. In the statement of activities, pension costs are recognized on the accrual basis.

Thïs year, the difference between accrual-basis pension costs and actual employer contributions was:

Changes in net position -governmental activities
~ 6,176,262
(543,13Q)
(6,994)
99~,681
2,450
1~~,111
2,966,995
1,743,139
$ 11,525,51$
The notes to basic financial statements are an integral part of this statement. 24 DRAFT 48 of 301
~ITY ~}F ~(~LETA
STATEi1~IENT DF FIDUCIARY ~TET Pf~SITI(~N
FIDUCIARY FLT~TDS
June 30, 2022
Successor
Agency tc~ the
Goleta
Redevelopment
Agency Section 115 Section 115
I~rlV~ite-Purpose Pensi©n ~~~~`►
Trust Fund Trust Fund Trust Fund
ASSETS:

Cash and investments ~ 1,207,376 ~ 153,548 $ 301,225
Receivables:

Interest 1,087 - -
Settlement receivable -City of Goleta 2,327,823 - -
I3ond insurance premium. 57,207 - -
Restricted assets:

Cash and investments with fiscal agent 2,00 - -
TOTAL ASSETS 3,56,393 153,548 301,225
DEFERRED ~UTFLC.IS {JF RESC}IJR~ES
Loss on bond refunding 596,502 - -
TOTAL DEFER~.RED C)UTFLC~~JVS CJF RESQURCES 596,502 - - LIABILITIES:

Accrued interest bond payable 39,496 - -
B Dods payable, current portion 3 61, 811 - -
Bonds payable, net of current portion 11,986,966 - -
Unearned revenue 538,425 - -
TC)TAL LIABILITIES 12,926,698 - -
1~1ET P{~SITI~II~:

Restricted ~n trust for:

Successor Agency to the Goleta RDA {8,733,803} - -
Pension benefits - 153,548 -
DPEB benefits - - 301,225
Total net position ~ {8,733,803) 153,548 $ 3(11,225
Thenatesto basic financial statements are an integralpariof this statement. 25 DRAFT 49 of 301
~~ 1 ~ ~~ i.TVL~ 1
STATE11fIEi~TT +~F CHA~C.~ES IN FII)UCI.AR.Y NET PC)SITI~3N FII)LTCIA.~ FLTI~DS
For the Fiscal dear Ended June 3 fl, 2fl22
Successor
Agency to the
Goleta
Redevelopment
Agency Section 115 Section 115
Private-Purpose Pension oPEB
Trust Fund Trust Fund Trust Fund
AI.~I~ITI~i~S:

Property taxes $ 1,291,764 $ - $ -
Use of money and pr©party {9,429} { 16,2flfl) (31,781)
~isCellaneous 2,U~fl - -
Contributions from the City of Goleta 17fl,flflfl 333,Sflfl Total additions 1,284,335 153,8flfl 3fl1,719
1)FT}IjCTIC)1~5:

Administrati©n 131,9fl6 252 494
Corrununity development 334,369 - -
I)Istrlbutlon to Santa Earbara County 775,941 - -
I~ebt service:

Interest 3 87,575 - -
Total deducts©ns 1,629,791 252 494
Change in net position {345,456} 153,548 3fl 1,225
I~]et posltton -July 1 {8,388,347) - -
let position -June 3fl {8,733,8fl3} $ 153,548 $ 341,225 The notes to basic financial statements are an integral part of this statement. 26 DRAFT 50 of 301
~ITY oF ~oLETA
~C~TES T{~ THE BASIC FI%dAI~CIAL STATEIVIEI~TS
TC~rI'+lE 30, 202~
oT 1-- SUMMARY of I~1~TII~AI~TT A~C+QUI'+1TII'~I POLICIES The accounting policies of the City of Goleta conform to generally accepted accounting principles as applicable to governments.

The governmental Accounting Standards Board {C~ASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

A. T~.eporting Entity
The City of Goleta {the City) was incorporated February 1, Zoo2, under the general laws of the State of California. The City operates under the City Council-il~íanager form of government.

The City provides the following services as authorized by its general laws: public safety, public works, community development, and general administrative services.

B. Basis of Presentation
t~oveYrarnerat-widc ;~tatemerat~~
government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include a single column for the governmental activities of the primary government. The City has no business-type activities and no discretely presented component units. Eliminatlons have been made in the statement of activities so that certain allocated expenses are recorded only once {by the function to which they were allocated. However, general government expenses have not been allocated as indirect expenses to the various functions of the City. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. f3irect expenses are those that are clearly identifiable with a specific function or segment. Program revenues include { 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2} grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.

Taxes and other items not properly included in program revenues are reported instead as general revenues. government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting, Linder the economic resources measurement focus, all {both current and long term) economic resources and obligations of the reporting government are reported in the government-wide financial statements. Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements, Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry ifthat money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Farad Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance, revenues, and expenditures. governmental resources are allocated to, and accounted for in, individual funds based upon the purposes for which they are to be spent and the means by which activities are controlled.
27 DRAFT 51 of 301
l,..l~~ ~~ 13~1.~~~11
hiQT~S TG THE BASIC FTI~ACIAL STAT~IVIETS
T~~E 30, 2022
I~C~TE 1-- SUIYIARY ~l► F SII~IFI+~A~IT A~C()HTII~i PC)LICIES {C;"©ntinued~ B. Basis of Presentation ~Cantinued,~
Fund financial statements for the primary government's gaverninental funds and fiduciary funds are presented after the government-wide financial statements. These statements display information about major fiends individually and other governmental funds in the aggregate for governmental funds. Fiduciary information includes financial information for the private-purpose trust funds.
~©ve~nmental funds
Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu, transient occupancy taxes, grants, cannabis taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Qther revenue items are considered to be measurable and available when cash is received by the government.

Revenue recognition is subject to the ~aeasu~able and availability criteria for the goverrunental funds in the fund financial statements. Exchange t~a~sactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). ~,Qcally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. imp©sed n©nexc~iange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises ar when they are received, whichever occurs first. ~overnmení-mandated and voluntary n©nexel~ange transactions are recognized as revenues when all applicable eligibiliíy requirements have been met. Revenues, expenditures, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, which requires that local governments defer grant revenue that is not received within their availability period of 120 days after the fiscal year ends to meet the "available" criteria of revenue recognition.

In the fund financial statements, governmental funds are presented using the current~nancial resources measurement focus. This means that only current assets, current liabilities and deferred inflows are generally included on the balance sheets. The reported fund balance (net current assets) is considered to be a measure of"available spendable resources".

Governmental fund operating statements present increases (revenues and other financing sources} and decreases {expenditures and other financing uses] in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. i~ancurrent portions of long-term receivables due to governmental funds are reported an their balance sheets in spite of their spending measurement focus.

Recognition of governmental fund type revenue represented by noncurrent receivables are deferred and are shown as unavailable revenues until they become current receivables.

Because of their spending measurement focus, expendiïure recognition for governmental fiand types excludes amounts represented by noncurrent liabilities. Since they da not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund llabllltles.

Amounts expended to acquire capital assets are recorded as expenditures in the fiscal year that resources were expended rather than as fund assets. The proceeds of long-term debt are recorded as anathe~4 financing sou~ee rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

The fiduciary fund is accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities {whether current or noncurrent} are included on the Statement of Fiduciary I~et P'ositian. The Statement of Changes in Fiduciary I~Tet Position presents increases (revenues) and decreases {expenses) in total net position. Cinder the accrual bask of accounting, revenues are recognized in the period in which the revenues are earned while expenses are recognized In the period In which the liability is Incurred. ► ~ :

DRAFT 52 of 301
~IT~Y fJ~ ~£)LETA
~TGTES T{~ TI~E BASIC FINA~CIAL STATE1ViENTS
TC;~NE 3 ~, 20~2
NC~►TE 1— T.TiViAR F SI+~I~I~AT A~~~IJTI~ Pt~LI~IE~ ~~oníinued} ~. Fund Classifications
GASB Statement Igo. 34 defines major funds and requires that the City's major funds are identified and presented separately in the fund financial statements. All other funds, called non.major funds, are combined and reported in a single column in the Fund Statements as tither Governmental Funds, regardless of their fund-type.

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

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

General Fund —The General Fund is the general operating fund ofthe City. The General Fund accounts for activities and services traditronaïly associated with governtTlents such as palace, which are financed primarily through taxgenerated revenues and are not accounted for and reported in another fund. The General Fund also accounts far deposits advanced to the City to fund development-related services provided by the City's Planning and Environmental Review Department and Public worl~s Department.

TIP Special Revenue Fund —Accounts for traffic development impact fees.

Park I.~evelopment Impact Fees (1~IF~ Special Revenue Fund —Accounts for parr development impact fees. ~4ctive Transportation Program ►Special Revenue Fund —Accounts for State grant funds for transportation projects. ~oronavirus State cS~ Local Fiscal Rec©very —Accounts for the funding from the American Rescue Plan Act to support expenditures or losses incurred due to the C~7vID-1 ~ public health emergency.

Federal Transportation Program Fund —Accounts for federal grant funds for transportation projects.

Additionally, the City reports the fallowing fund types:

Special Revenue Funds —These funds are used to account for the proceeds of specific revenue sources that are restricted ar committed to expenditure far specific purposes other than debt service and capital projects.

Fiduciary Fund Type:

Private-Purpose Trust Fund —This fund accounts for the activities of the Successor Agency to the Goleta Redevelopment Agency. The fund's primary purpose is to expedite the dissolution ofthe former Agency's net position in accordance with ABx 12~, AB 1484, and SB 1 ~~. The Private-Purpose Trust Fund is omitted from the governlnentwlde financial statements.

Section 11 S Persian Trust Fund —This Section 11 ~ Persian Trust was established to prefund the City's outstanding pension obl~gatlan and can only be used to offset Cal~fornla Public Employees' Retirement System pension costs.

Section ~ 1 S ~P.~B Trust Fund —This Section 115 C.~PEB Trust was established to prefund the City's outstanding GPEB obligation and can only be used to offset California Public Employees' Medical and I~ospital Care Act C~PEB costs.

D. Property .Taxes
California Constitution Article VIII A limits the combined property tax rate to one percent of a property's assessed valuation. Additional taxes may be imposed with voters' approval. Assessed value is calculated at one hundred percent of a property's fair value, as defined by Article VIII A, and may be increased no more than two percent per year, unless a change in ownership or new construction occurs. The State legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions. 2~
DRAFT 53 of 301
~ITY C)FGOLETA
N{.~TES TQ THE BASIC FINANCIAL STATEMENTS
TC~~NE 3 0, 20~2
NOTE 1-- SU~MARY oF SI~NIFI~AI~T ACCOUNTIN+~ POLI~IES {~ontlnued) ~ Property Taxes {Continued
Properly tax revenues are recognized in the fiscal year for which taxes have been levied and collected within sixíy days of fiscal year end. Property taxes are billed and collected as follows:
~
Secured I.Tnsecured
January 1 January 1
July 1 July 1
November 1 (So%} August 1
February 1 {So%}
December l o {Nov.) August 31
April 1©{Feb.}
Valuation/Lien Dates
Levy Dates
Due Dates
Delinquency Dates
c.,ash anci Investments
Investments are reported in the accompanying financial statements at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability ïn an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment inc©me reported for that fiscal year. investment income includes interest earnings and changes in fair value. The City pools cash and investments of all funds. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except for investment income associated with funds not legally required to receive pooled investment income which has been assigned to and recorded as revenue of the General Fund.

Capital Assets
Capital assets including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at acquisition value at the date of contribution. Generally, capital asset purchases in excess of S,000 are capitalized if they have an expected useful life of three years or more. Capital assets include public domain {infrastructure} general capital assets consisting ofcertain improvements including roads, streets, sidewalks, medians, and storm drains.

The City uses the straight-line depreciation method in the goverr~rnent-wide financial statements for depreciating storm drains, park equipment, buildings, vehicles, equipment and furniture, and leasehold improvements. Depreciation is charged as an expense against operations, and accumulated depreciation is reported on the respective statement of net position. Depreciation begins on the first full year after the asset is placed in service. The range of lives used for depreciation purposes for each capital asset class is as follows:

Item Useful Lïfe
Buildings and improvements 34 to Sú years
vehicles ~ years
Equipment and furniture 5 to 15 years
Infrastructure:

Pavement 40 years
Sidewalks So years
Curbs and gutters Sú years
Bridges 65 years
I-Iardscape So years
Medians SQ years
Parking 1©ts 4o years
Traffic control devices 10 years
30 DRAFT 54 of 301
~ITY C)F ..ToLETA
NOTES TC~ THE BASIC FINANCIAL STATEMENTS
.TCTNE 3 U, 2022
I~C}TE 1— SITMIVIAR`Y C)F SI~I~IFI~AI~TT A+L+~~JU~TTIT~~ PULI~IES {~antinued} C7. Deferred C}utflows and Inflows of Resources
Pursuant to GASB Statement No. 63, "financial Reporting o` f '~e~e~~ed C~utfl~ws cif resources, I~efer~ec~ In~ flows Q. f
Resources, and Net Position," and ~ASB Statement No. 65, "Items Previously Reported as assets and Liabilities, „ the City recognizes deferred outflows and inflows of resources.

In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period. The Clty has two hems that qualify for reporting In this category; refer to Notesiand 8 for detailed listing of the deferred outflows of resources the City has reported.

In addition to liabilities, the Statement of Net Position and the governmental Funds —Balance Sheet will sometimes report a separate section for deferred inflows of resources. A deferred inflow ofresources is defined as an acquisition of net position by the City that is applicable to a future reporting period, The Cifiy has two items that qualify for reporting in this categaly; refer to Notes 7 and ~ for detailed listing of the deferred inflows of resources the City has reported.

H. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City accounts for such items using the consumption method.

Compensated Absences
An employee benefits payable liability is recorded for unused vacation and similar compensatory leave balances. The employees' entitlement to these balances is attributable to services already rendered, and it is probable that vi~•tually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

J. I.Tnearned Revenue
i.Tnearned revenue arises when assets are received before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibiliíy requirements are met are recorded as unearned revenue.

I.. Pensions
For purposes afineasuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of ~aleta's California Public Employee's Retirement System {CaIPERS} plans {Plans and additions to/deductions from the Plans' fiduciary net position have been determined an the same basis as they are reported by CaIPERS. Far this purpose, benefit payments {including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

L. +Other Postemplo~ment Benefits ~C~PEB~
For purposes of measuring the net C~PEB liability and deferred outflows/inflows of resources related to C)PEB, and OPEB expense, information about the fiduciary net position of the City's plan {OPEB Plan} and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
31 DRAFT 55 of 301
i....~~ I ~~ 1.3~1..i~ 1 ~
N~TES T{~ ~~~ BASIC ~11V ~~~lly~ ~ 1~ 1 1:~~~~ 1 ►J
.TUNE 30, ~022
~T{~TE 1— SUMTVIAR~ C)F SIGI~IFI~AI~1T AC+C+C}I.TI~TII~T+G Pt~LI~IES {~ontinued} lid. Fund Balances
Fund balances of the governmental funds are classified as follows:

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

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

Committed Fund Balance —represents amounts that can only be used for a specific purpose because of a formal action by the City's governing board. Committed amounts cannot be used far any other purpose unless the governing board removes those constraints by t~.kïng the same type of forl~nal action , such. as by an ordinance or resolution. Committed fund balance amounts maybe used for other purposes with appropriate due process by the governing board. Commitments are typically done through adoption and amendment of the budget. Committed fund balance amounts differ from restricted balances in that the constraints on their use do not came from outside parties, constitutional provisions, or enabling legislation.

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

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

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

It is the City's policy to consider committed amounts as being reduced f"Irat, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classïficatíons could be used.

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

Net position that is net investment in capital assets, consists of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Restricted net position is the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions ar enabling legislations. Unrestricted net posítíon consists of net position that does not meet the definition of net investment in capital assets or restricted net position. ~7. Interfund Balances/Internal Balances
Advances to and advances from other funds represent Interfund loans in the fund financial statements. Advances between funds are offset by a fund liability or by deferred revenue ïn the applicable governmental funds to Indicate that they are not expendable available financial resources. Any unpaid interest due to lack of funds in the borrowing fund increases the principal owed and is reported in the lending fund as deferred revenue. All other outstanding balances between funds are reported as due to and due from other funds. These are generally repaid within the following fiscal year.
32 DRAFT 56 of 301
IOTES TO THE BASF FII~AI~CIAL STATEMEiTS
.T~rE 3 0, 2 022
N{)TE 1-- ~iJMMARY QF SI~I~IFIC~i1~1~T AC+CtJUNTII'~~ Ft~LICIES {Continued) P. Budget_ ary Accounting
The City Council establishes budgets for the General Fund and all Special Revenue Funds, except for certain Special Revenue Funds for which expenditures are controlled by grant funding or by assessments received. Budgetary control is legally maintained at the fund level for these funds. Department heads submit budget requests to the City Manager.

The City Manager prepares an estimate of revenues and prepares recommendations for the next year's budget. The preliminary budget may or may not be amended by the City Council and is adapted by resolution by the City Council on or before June 30 in accordance with the municipal code. The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval. The City Manager is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.

Expenditures fay not legally exceed appropriations at the fund level, which is the legal level of co~~trol. Sup~ple~ne~~tal appropriations, which increase appropriations, may be made during the fiscat year. There were no material supplemental appropriations made for the fiscal year ended June 30, 2022. Budget information is presented far the General and budgeted Special Revenue Funds in the fund financial statements. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

Appropriations lapse at the end of the fiscal year and then are re-budgeted for the coming year. Under Article ~IIIB of the California Constitution {the Gann Spending Limitation Initiative}, the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fees schedules, or an excess in one year may be offset against a deficit in the following fiscal year. For the fiscal year ended June 30, 2022, based on the calculations by City Management, proceeds of taxes did not exceed the appropriations limit.

Budgeted appropriations for the various governmental funds become effective each July 1. ~ Use of Estimates
The preparation of financial statements requires management to male certain estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure ofcontingent assets and liabilities, at the date ofthe financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

R. ~uture Accountin Pronouncements
GASB Statements listed below will ~ implemented in future financial statements:

Statement Igo. ~ 1 "Conduit Debt Obligations"
Statement I~1o. 93 'replacement of Interbar~lc Offered
Rates"
Statement No. 94 'P'ublic-Private and Public-Public
Partnerships and Availability
Payment Arrangements"
Statement No. 96 "Subscription-Based Information
Technology Arrangements► `
Statement Igo. 98 `rlhe Annual Comprehensive
Financial Report"
The provisions of this statement are effective
for fiscal years beginning after December 15, 2021.

The provisions of this statement except for paragraphs
11 b, 13, and 14 are effective for fiscal years beginning after June 1 S, 2020. Paragraph 11 b is effective for fiscal years beginning after December 31, 2021. Paragraphs
13 and 14 are effective for fiscal years beginning after June 15, 2021.

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

The provisions of this statement are effective
for fiscal years ginning after December 15, 2021.
33 DRAFT 57 of 301
CITY {~F ~~IL~TA
NOTES TO TIDE BASF FII~AI~CIAL STATEMEI'~TS
J~C;~E 3 0, 20122
I~~TE 1— SI.Tii~IMAFtY CIF SIGI~IFICAi~TT ACCtJIJI~+TTIi`~1~ P{~LICIES {Continued} The provisions of this statement are effective
in April 2022 except far the provisions related to
leases, PPPs, SBITAs, financial guarantees
and derivative instruments. The provisions related
to leases, PPPs, and SBITÀs are effective for fiscal
years beginning after June 15, 2022. The provisions
related to financial guarantees and derivative
instruments are effective for fiscal years beginning
after June 15, 2023.
iàie ~..~r~ vàzia~in.~i f tiàis .~.stw.teiiàeiit are effe~✓ti~iJe for fiscal years beginning after June 1 ~, 2023 .

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

R. Future Accounting Pronfluncements {Continued}
Statement Igo. 99 "Omnibus 2022"
~ta,tement 1\,Trt ~(}() "ACca, v. ~nti ng ~~~ngP~ ar~d ~rr~r v v E.aiia. xia x iu.aa. a v uw.a kiv
Carrections - an amendment of GASB
Statement ~1a. 62"
Statement ~©. 101 °°Compensated Absences=°
~(.~TE 2 — CASH ANI~ I~TVESTNiEI~ITS
The cflmpflsltlfln of cash and lnvesí~nents as flf June 30, 2022, is as fflllflws:

Cash on hand ~ 1,3 7 8
Deposits with financial institutions 590,247
Investments 79,600,482
Tfltal cash and investments 80,192,107
Cash and investments are classified in the financial statements as shown belflw, based. fln whether flr not their use is restricted under the terms flf the City's debt instruments flr Agency's agreements:

Statement of ~Ïet Posltlfln:

Cash and investments $ 78,527,058
Fiduciary Funds:

Cash and investments í,b62,149
Cash and investments with fiscal agent 2,900
Total cash and investments 80,192,107
Cflvern.mental Accounting Standards Bflard ~OASB} Statement moo. 72, "Fair Value Measurements and Application," provides the framewflrk for measuring fair value. The framewflrk categflrizes a fair value hierarch that is based on the valuatifln inputs used to measure the fair value of the asset. Level 1 inputs are quflted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unflbservable inputs.

The City has recurring fair value measurements as flf June 30, 2022 as shown fln the following page:
34 DRAFT 58 of 301
CIT~UF+~ULETA

NOTES TO THE BASIC FINANCIAL STATEMENTS
T~rNE 3 ~, 2fl22
MUTE 2 —CASHANIT INVESTIMENTS(C©ntinuedj
Fair Value Measurement Using
Quoted Prices in Significant
ÀCt1Ve Markets Other Slgnificant
for Identical Observable Unobservable
Assets Inputs Inputs
Investments by fair value Total {Level 1 } {Level 2} (Level 3} Negotiable certificates of deposit $ 4,772,71 ~ ~ 4,772,719 ~ - $ - PAS 454,773 - 454,773 -
Total investments measured at fair value 5,227,492 $ 4,772,71 ~ $ 454,773 ~ - ~~~~.,e Investments measured at amortized cost
Money market funds 23,557,784
LAIF 5 Q,812,3 0~
Held by fiscal agent:

Money market funds 2,9~t~
Total investments 79,~(~0,482
A. _Investments Authorized bathe California Government Cflde and the City's Investment Policy Allowable investment instruments are defined in the California Government Code Section 53~0~, et seq., as amended.

If the Cflde is further revised to allow additional investments flr is changed regarding the limits on certain categories flf investments, the City is authorized to cflnform to these changes, excluding those changes that may be prohibited by this policy. i~Vhere the Government Code specifies a percentage limitation for a particular category of investments, that percentage is applicable Only at the date of purchase.

The table on the belflw Identif ïes the Investment types that are authorized for the City, including the fiduciary privatepurpflse trust fund, by the California Government Code {or the City's investment policy, where more restrictive). The table also identifies certain provisions flf the California Government Code {flr the City's investment policy, where more restrictive} that address interest rate risk, credit risk, and concentration of credit risk. Thls table does nflt address investments of debt prflceeds held by bond trustee that are gflverned by the provisions of debt agreements of the City, rather than the general provisions flf the California Government Code flr the City's investment policy.

Authorized Maximum Maximum
Investment Types by Investment Maximum Percentage Investment Authorized by State Law Policy Maturity* of Pflrtfolifl~` in One Issuer* Local Agency Bflnds No 5 years None 10%
U.S. Treasury Obligations Yes ~ years None Nflne
U.S. Government-Sponsored
Agency Securities
Banker's Acceptances
Commercial Paper
Certificates of Deposit
Negfltiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase Agreements
Medium-Term Notes
Mutual Funds
Money Market Mutual Funds
Mortgage Pass-Through Securities
County Pooled Investment Funds
Local Agency Investment Fund
JPA Pools {other investment pools)
Passbook Accounts
Yes 5 years bone Done
N4 180 days 4~% 10%
Yes 18~ days 15 °/© 1 ~%
Yes 5 years 30% 1©%
No 5 years 31~% 10%
No 1 year None 10%
N© ~2 days 21~% of base value lU°l°
N© 5 years 30% 1 ~%
N© N/A ZU% 1 a%
Yes N/A 2~°/© 1 Q%
No 5 years 24% 1 ~%
No NIA None None
Yes N/A None $75,~C}~,U40
Yes None None None
Yes N/A None None
35 DRAFT 59 of 301
Carrying
Investment Type ►,mount
Certl~CateS of depoSlt $ 4,172,719
PARS 454,713
LAIF 5 A,512,3 A6
Money market funds 23,557,784
Held by fiscal agent:

Money market funds 2,9úú
Total ~ 79,6AA,452
Concentration of Credit Risk

CITYUF GALETA
NOTES T{~ THE BASIC FINAi'~TCIAL STATEMENTS
J~I~J 1•. E 3 0, 2022
I~T{~TE ~ —CASH A1~TI) II~VESTIVIEIT'S {Ca► ntinued)
A. Investments Authorized by the California Government Code and the City's .Investment Polled (Contlnued~ ~ Based on state law requirements or investment policy requirements, whichever is more resírictive.

Investments ofbond funds will be made in conformance with the trust indenture for each issue. Such investments shall be held separately when required. It is the City's intent, at the time ofpurchase, to hold all investments until maturity to ensure the return of all invested principal dollars; however, sales prior to maturity are permitted. Investment maturities can also be based on a review of cash flow forecasts. Maturities will be scheduled to permit the Ciíy to meet all projected cash obligations,
~. Disclosures R.elating_to Interest Date I~isl~
Interest rate risk is the risk that changes in market interest rates wí11 adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. Gne of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments, and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly aver time as necessary to provide the cash flows and liquidity needed for operations.

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

Remaining Maturity (in Months). Carrying 12 Months 13-24 25-6A More than Investment Type ~~.m©unt C)r Less M©nths Months 6ú Months Certificates of deposit
PARS
LAIF
Money market funds
Feld by I~scal agent:

Money market funds
Total
~ 4,712,71 ~ ~ 247,ú17 $ 246,814 ~ 4,275,828 ~ -
454,773 454,113
~ \1,i.? 1 ~,~ l~~ 5A,812,306
23,557,784 23,557,784
2,9úú 2,9úú - - -
~
~ 79,6Aú,482 $ 75,ú14,54A ~ 246,814 $ 4,278,825 ~ -
.

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by the California Government Code, and the actual rating as of fiscal year end for each investment type.

Minimum Exempt
Legal From Rating as of Fiscal Year End
Rating I31scl©Sure ~►AA Not Rated
~T/A ~ - $ - $ 4,712,71 ~
- - 454,773
NIA - - 5ú,812,3ú6
N/A - - 23,557,754
N/A - - 2,9úú
$ -
~_ ,~ ~ 19,b0ú,452
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. During the fiscal year ended June 30, 2022, the City did not hold any investments in any one issuer {other than U.S. Treasury securities, mutual funds, and external investment pools} that represent 10°/© or mare of total City investments. 36 DRAFT 60 of 301
CITAof +GOLETA
1C~TES TC~ THE BASIC FIi~ATCIAL STATE~ViETS
F(3R THE FISCAL SEAR EIIEI~ T[:TE 3 0, 202
N{JTE 2 —CASH AND INVESTiViENTS (C©ntinued)
I~. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do n©t contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by State or local governmental units by pledging securities In an undivided collateral pool held by a depository regulated under State law sunless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City's deposits by pledging first trust deed mortgage notes having a value of 1 So% of the secured public deposits. As of dune 3 0, ? ov2, the City had deposits of ~3,~~ 1,1 ~ with financial ~ríst~tutio~~s to excess of federal depository insurance limits that were held in collateralized accounts.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. with respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or governmental investment pools {such as LAIF).

E. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LATE) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying basic financial statements at the amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio {in relation to the amortized cost of that portfolio). The balance available for withdrawal Is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
1~TOTE 3 — INTERFUND TRANSACTI+()NS
Interfund transactions are reported as either loans, services provided, reimbursements, or transfers. Loans are reported as Interfund receivables and payables, as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other Interfund transactions are treated as transfers. Transfers among governmental funds are netted and eliminated as part ofthe reconciliation to the government-wide financial statements.

A. I~► ue From/To Other Funds
I~ue to and from balances result from the time lag between the dates that Interfund goods and services are provided or reimbursable expenditures occur, transactions are recorded in the accounting system., and payments between funds are made.
37 DRAFT 61 of 301
CITY (~F C)LETA
N~}TES TC~ TDE BASIC FINANCIAL STATEMENTS
FC~R THE FISCAL YEAR ENDED ~C;fNE 3 Q, 2022
I~t~TE 3 — INTERFIJI) TRAI~SACTI(~I~S {Continued)
A. Due FromlTo Other Funds {Continued
Individual fund interfund receivable and payable balances at June 30, 2022, are as follows:

Fund
Major Governmental Funds:

General Fund ~ 2,544,997
Active Transportation Program Fund
Federal Transportation Program Fund
Nonmajor Governmental Funds:

CDBG Fund
County Fire DIF Fund
DMGP Grant Fund
Dousing ~ Community Development State Grant Fund
DSIP Fund
LSTP State Grant Fund
Local STIP Fund
Measure A Grants Fund
MiscellaneDs Grants Fund
Monarch Butterfly Dabitat Management Plan Fund
C~BF -Southern California Edison Fund
~}TS Public Safety Fund
Planning Grants Program Fund
Public Administration Facilities DIF Fund
Public Safety Fund
RSTP State Grant Fund
S SARP Grant Fund
TIRCP Grant Fund
Total ,~ ~,,~~.~,~~ i
$ -
14,755
257,226
~ 3,477
91,753
5,560
86,331
9,135
122,3 5 6
4,309
555,648
60,778
472,940
3,201
4,537
107,790
1,725
3 415,736
49,404
228,333
$ 2,544,997
B. Interfund Transfers
Interfund transfers consist of operating transfers from funds receiving revenue to funds through which the resources are to be expended.

Interfund transfers for the 2021-2022 fiscal year are as follows:

Fund Transfers In Transfers Jut
Major Governmental Fund:

General Fund 24,704 $ 100,000
Nonmaj or Governmental Fund:

CDBG Fund - 24,704
Solid Waste Program Fund 100,000 -
$ 124,704 ~ 124,704
38 DRAFT 62 of 301

CITY OF GULETA
NOTES TC) THE BASF FINANCIAL STATE1~iE1~TTS
Ff~R TIE FISCAL SEAR ENDED .T[:1~NE U, 2022
NUTS 4 — CAPITAL ASSETS
Capital assets activity for the fiscal year ended June 30, 2022, was as follows:

Balance Balance
July 1, June 3 0,
2021 Additions Deletions Transfers 2022
Governmental Activities
~dondepreciahle capital assets:

Land $ 47,299,457 $ - $ - $ 717,353 $ 48,016,810
Right of way 11,395,313 - - - 11,395,313
Construction in progress 29,764,78{ 5,215,733 - _ {1,107,307} 33,873,212 Total nondepreciable capital assets $ 88,459,556 $ 5,215,733 $ - $ {389,954) $ 93,285,335 Depreciable capital assets:

Infrastructure
Vehicles
Furniture and equipment
Buildings and improvements
Total depreciable capital assets
Less accumulated depreciation:

Infrastructure
Vehicles
Furniture and equipment
Buildings and improvements
Total accumulated depreciation
Net depreciable capital assets
Net capital assets
$ 246,ó47,ó25 $ - $ - $ 389,954 ~ 247,037,579
791,649 - - - 791,649
1,258,766 81,778 - - 1,340,544
7,728,584 -
_ ~ - 7,728,584
256,42ó,b24 81,778 - 389,954 256,898,35b
135,767,314 S,54ó,241 - - 141,313,555
óS8,579 42,598 - - 701,177
930,298 6S,23ó - - 995,534
1,409,252 186,S6ó - - 1,595,818
138,7óS,443 5,840,641 - - 144,óoó,084
$ 117,óó1,181 $ (S,758,8ó3) $ - $ 389,954 $ 112,292,272 $ 206,120,737 $ {543,130) $ - $ - $ 2o5,577,ó07
Depreciation expense was charged to function and programs based on their usage ofthe related assets. The amounts allocated to each function or program were as follows:

Gavernmental Activïíies:

General g©vernnlent $ ~ 68,612
Public safety 26,931
Public words 5,628,161
C©mmunity services 16,937
Total depreciation expense-governmental activities $ 5,84t},641 NUTS 5 —LUNG-TERM LIABILITIES
A. Compensated Absences
The City's policies relating to compensated absences are described in Note 1, I. Compensated Absences. The liability in the amount of $815,213 at June 30, 2022, is expected to be paid in future years from future resources. Compensated absences have typically been liquidated from the General Fund.

B. Claims and Judgments Payable
Per review of the insurance policy agreements, it was determined that there was no City liability for claims and judgments of the insurance pool.

C. Successor A~encv Settlement Agreement
On September 24, 2018, the City agreed to a settlement agreement to transfer X6,431,587 to the Successor Agency to the Goleta Redevelopment Agency. The payments will then be distributed out to the taxing agencies as consistent with California Health and Safety Code sections 34179.5 and 34l79.ó. The City paid 1,000,000 within 90 days of the settlement date and then pays $775,941 annually by June 30~ of each fiscal. year for seven years. 39 DRAFT 63 of 301
~~ 1 ~ ~1~ ~~L~~~
I~~TES T~ TI-IE BASF FI1~AI~~IAL STATEMEI`~TTS
Ft~R TI-IE FIS~AL YEAR E~TDED T[~~I~TE 3 U, 2~22
1~OTE ~ — ~HAGES IN L~1~-TERM LIABILITIES
The following is a summary of long-term liability activities for the fiscal year ended June 30, 2022:

Balance Balance Due Within
July 1, 2021 Additions Deletions June 30, 2022 Dne Year ~©mpensated absences 808,223 497,21 ~ ~ 490,226 $ 815,213 ~ 163,043 Successor Agency settlement agreement 3,103,764 - 775,941 2,327,823 775,941 IBank lease payable 10,000,000 - 2229740 9,777,260 228,620 (PEB liability 2,766,199 - 2,131,573 634,626 -
Net pension liability 3,536,142 - 2,530,164 1,005,978 - Total $ 20,214,328 $ 497,21+6 $ 6,150,644 $ 14,560,900 $ 1,167,604 ~It~}T 7 — PEi+~SI(Ji'+T PLAi~T
A. general Information about the Pension Plans
~lan ~eseriptions
All qualified permanent and probationary employees are eligible to participate in the City's 2.0% at 55 (Tier I) and 2.0% at 62 {Tier III PEPRA Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System ~CaIPERS}. Benefit provisions under the Plans are established by Mate statute and Ciíy resolution. Ca1PERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CaIPERS' website.
~ ~ ~ ~ ~ ~~~.

The Plan provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benef"~t~ arP based on years ofcredited service, equal to one year of full time employment. Classic members and PEPRA Safety members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPI~,.A Miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. Ali members are eligible for non-duty disability benefits after five years of service. The death benefit is the Basic Death Benefit. The cast of living adjustments for each plan are applied as specifïed by the Public Employees' Retirement Law.

The Plans' provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous
Hire Date
Benefit vesting schedule
Proportion-June 30, 2021
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Prior to January 1,
2013
2% ~~ 55
2°/© ~~ 5 5
monthly for life
50-63

1.426% to 2.418°/©

7.00°/fl

10.88°!°+ $255,699
C)n or after
January 1, 2013
2%~~62
5 years service
monthly for life
52-67

1.0% to 2.5%
~.~~°/°

7.59°/©+ $9,213
40 DRAFT 64 of 301

1..~~ 1 i ~~ 4i~~~~~
NOTES T+C) T~~E BASIC FI~~AI'~TCIAL STATEMENTS
FC)R TI-IE FISCAL ~EAR ENDED T~rNE 3 {~, 2fl22
Nt)TE 7 — PENIt~N PLAN {continued)
A. General Information about the Pension Plans ~Continued~ ~ont~ibutions
Section 2Ú814k} of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following. notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June (~ by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Contributions to the pension plan from the City were 1,072,458 for the fiscal year ended June 3Ú, 2ÚZ2 and were paid primarily from the City's General Fund.

B. Pension Liabilities Pension Ex enses and Deferred Outflows/Inflows of Resources Related to Pensions At June 3Ú, ZÚ22, the City reported a liability of 1,Úo5,978 for its proportionate share of the net pension liability. The net pension liability was measured as of June 3Ú, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 3Ú, 2Ú2Ú rolled forward using standard update procedures. The City's proportion of the net pennon liability was based on a pro~ectlon ofthe City's long-term share of contributions to the pensionplan relative to the projected contributions of all Pension Plan participants, actuarially determined. The City's proportionate share of net pension liability for miscellaneous plans as of June 3Ú, 2Ú2l and 2o2Ú was as follows:

Miscellaneous
Proportion-June 30, 2020 0.08383%
Proportion-June 30, 2021 0.05298%
Change-Increase {Decrease) -0.03085%
For the fiscal year ended June 3Ú, ZÚ22, the City recognized pension expense of {67Ú,b81}. Pension expense represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in ïnvestrnent gain/loss, actuarial ga.ïn/loss, actuarial assurr~ptions or method, and plan benefits.

At June 3Ú, ZÚ22, the City reported deferred outflows ofresources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows
of Resources
Differences between expected and actual experience $ 112,81fl Net difference between projected and actual earnings on retirement plan investments -
Changes in proportion and differences between City
contributions and proportionate share of contributions 151,fl76 Adjustment due to differences in proportion 463,flbfl
City contributions subsequent to the measurement date 1,Ú7Z,4 5 8 1,?99,4fl4
Deferred Inflows of
Resources
878,165
~ 878,1 b5
Deferred outflows of resources and deferred inflows of resources above represent the unamortized portion of changes to net pension liability, to be recognized in future periods in a systematic and rational manner. $l,Ú72,458 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year ending June 3 Ú, ZÚ23.
41 DRAFT 65 of 301
CITA~F ~t~LE~A
N(JTES T{~ THE BASF FINANCIAL STATEMENTS
FCJR THE FISCAL SEAR ENDED ~~;~NE 30, 222
T{~T'E ~ — PE1~SI()N PLAN {Continuet~~
B. Pension Liabilities, Pension Expenses, and Deferred Qutflows/Inflows of Resources Related to Pensions ~Cantinued~
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in the pension expenses as follows:

Fiscal year Ending June 30,
2023
2024
2025
2026
~4ctua~ial ~ssu~a~tz~ns
.A►mount
~ 136,633
48,664
{93,~37}
(242g679~
$ (151,21~}
The total pension liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions:

Miscellaneous
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
June 30, 2Ú2o
June 3 {}, 2021
Entry-Age Normal Cast Method

7.15°la

2.50%
3 ,00°/©
Varies by Entry Age and Service

7.00%
Derived using CaIPERS' Membership
Data for all Funds { 1 j
Contract CDLA up to 2.50°/a until
Purchasing Power Protection Allowance
Floor on Purchasing Power applies;

2.75% thereafter
{ 1 ~ The mortality table used was developed based on CaIPERS' specific data, The table includes I S years of mortality improvements using Society of Actuaries Scale 90°/©of scale-MP 2016.

For more details on this table please refer to the December 201 ?experience study report.

I.~iscvunt Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should to used in the calculation of the discount rate for public agency plans {including PERF C), CaIPERS stress tested plans that would most lil~ely result in a discount rate that would be different from the actuarially assumed discount rate. Based on testing the plans, the tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of municipal band rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund, including PERF C. The stress test results are presented in a detailed report called "C~A.B Crossover Testing Report" that can be attained at CaIPERS' website under the CASB Na.68 Section.
42 DRAFT 66 of 301
l.~ l ~ lJl` LT~~~ l ~
~~TES T~ TI-IE BASIC FI1~AI'~TCIAL STATEIVIEI~TS
F~►R T~~E FISCAL ~EAR E~TDED J[~~E 3 0, 2U22
LUTE 7 — PEl`~SIUI~T PLAi~ {Continued)
B. Persian Liabilities, Persian Expenses, and Deferred Gatflows/Inflows of Resources Related to Pensions ~Cantinued}
l~iscount Rate ~Continued)
CaIPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management {ALM}review cycle that is scheduled to be completed in February 2022. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CaIPERS expects to cantinas using a discount rate net of administrative expenses far GASB loo. 67 and moo. 68 calculations through at least the 2021-22 fiscal year. CaIPER will continue to check the materiality of the difference in calculation until such time as it has changed its methodology.

The long-term expected rate ofreturn on pension plan investments was determined using abuilding-black method in which bestestimate ranges of expected future real rates of return {expected returns, net pension plan investment expense and inflation} are developed far each major asset class.

In determining the long-terrrl expected rate of return, CaIPERS took into account bath short-term and long-term market return expectations as well as the expected pension fund cash flaws. Using historical returns of all the funds' asset classes, expected compound returns were calculated aver the share-term {first 10 years) and the long-term { 11-60 years) using abuilding-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

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

I`~ew
tratebic ~~F~ ~.eturn ~eai return
asset C1 ass A11©cation Years 1-10~ Years Il+{b~
Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0% 1.00% 2.62°/©
Inflation Assets 0.0°/© 0.77% 1.81 %
Private Equity 8.0% 6.3 0% 7.23 %
Real Assets 13.0% 3.75% 4.93%
Llgaldlty 1.0% 0.00% -0.92%
Total 100.0°/°
{a} An expected inflation of 2.00% was used far this period. (b} An expected inflation of 2.92% was used far this period.

Sensitivity of the Proportionate Share ©Y f tie Net Pension ~,iabi~iíy t~ ~h~nges in wise©ant Rate The fallowing represents the City's proportionate share of the net pension liability calculated using the discount rate of 7.15 percent, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage paint lower (6.15 percent} ar are percentage point higher (8.15 percent} than the current rate:
1 °/© Decrease CurrentDisc©ant Rate 1 °/© Increase
V.15% 1 .1 ~7 °~U 8.15°~©
City's proportionate share of
net pension plan liability {asset} ~ 3,987,493 ~
~
1,005,978 $ (1,458,799)
DRAFT 67 of 301
~IT~ t~F ~(.~LETA
NOTES TO T~IE BASIC FI~~ANCIAL STATEMEI'~iTS
FOR TI-~E F~~~1—lIJ ~Lti~ L~~LI~ ~~~~~' 1 `y #~ ~ V, L+1J~2 I'~UTE 7 — PEI~It)1~ PLAi~ (Continued}
B. Pension Liabilities, Pension Expenses,__and Deferred Outflows/Inflows of Resources Related to Pensions Continued)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CaIPERS' financial reports.

C. Payable to the Pension Plan
At June 30, 2022, the City had no amount outstanding for contributions to the pension plan required for the fiscal year ended June 30, 2022-
~~T~ 8— Pt~STEMPL~YMENT HE~,LTI~ CA3~E B~I~~FITS {+~P~B} A. Plan Description
The City provides postemployment health care benefits through the CaIPERS cost-sharing multiple employer health care program {PEIV1HCAj to eligible employees. The City pays the PE1I~IFICA minimum of $143/month for 2021 and $149/month for 2022. To be eligible for postretirement health benefits, employees must complete at least 5 years of continuous service and be a minimum of 50 years ofage. The City created a Section 11 ~ Trust Fund with PARS in their Moderate Portfolio in the fiscal year ended June 30, 2022 to set aside funds restricted to use for the City's OPEB benefits.

B. Emcees Covered
As ofJune 30, 2022, actuarial valuation, the following current and former employees were covered by the benefit terms under the City's Plan:

Active plan members ~ 6
Inactive plan members or beneficiaries currently receiving benefits 10 Inactive plan members entitled to but not yet receiving benefits 12 Total 10 ~
__. ~mswsn~~~_..

C. Contributions
The City currently finances benefits on apay-as-you-go basis primarily from the City's General Fund. The City created a Section 115 Trust Fund to set aside funds restricted to use for the City's OPEB benefits. During the fiscal year ended June 30, 2022, the City contributed 170,000 to the PARS Section 115 Trust Fund.

D. Net OPFB Liability
The City's net OPEB liability was measured as ofJune 30, 2022 and the net OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation as of June 30, 2022.

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

Salary increases 2.75°/©
Discount rate 5.50%
Healthcare cost trend rate Non-Medicare - 8.50% through 2024, decreasing to an ultimate rate of 3.45°/© in 2076 Medicare (Non-Kaiserj - 7.50% through 2024 decreasing to an ultimate rate of 3.45% in 2076 Medicare (wiser} - 6.25°/© through 2024 decreasing to an ultimate rate of 3.45% in 2076 DRAFT 68 of 301
~ITY t~F ~~LETA
I~~TES T(~ TI~E BASIC FIT~AI~CIAL, STATEMEI~TTS
FC~R TL~E FISCAL ~EAIZ EI~DEI) TC~~NE 3 0, 2022
NCJTE 8 -- P()STEMPLC~YIViENT HEALT~I BAIZE BENEFITS ~+t~► PEB) {~©ntinued) D. Net C~PEB Liability {Continued)
Pre-retirement and post-retirement mortality rates were based on the Ca1PEPS 2000-2019 experience study. IVlortality improvement was projected fully generational with Scale MP-2021.

Actuarial assumptions used in the June 30, 2022 valuation were based on a review of plan experience during the period July 1, 2021 to June 30, 2022.

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

To determine a resulting single {blended) rate, the an~ou~lt oftlle plan's projected fiduciar~r net positio~l (if any) a~ld the amount ofprojected benefit payments is compared in each period ofprojected benefit payments. The discount rate used to measure the City's net DPEB liability Is based on these requirements and the following information:

Long-Term
Expected Peturn Municipal Bond
of Plan Investments 20 4~ear Nigh Grade
Reporting Date Measurement Date {if any) Pate Index Discount Rate June 30, 2022 June 30, 2022 5.50% 3.54°1° 5.50%
June 30, 2021 June 30, 2021 2.25% 2.25% 2.25%
June 30, 2020 June 30, 2020 2.25% 2.25% 2.25%
E. Chan~es In the I~et +~PEB Llablll
Total D~~~ Plan Fiduciary let C~PEB
Liability 1~1et P©sits©n Liability
Balance at June 3 0, 2021 $ 2,766,199 - $ 2,766,199
{valuation Date June 30, 2020)
Changes recognized for the measurement period:

Service cost 328,789 - 328,789
Interest 69,274 - 69,274
Difference between expected and actual experience {516,973) - {516,973) Changes In assumptions {1,679,171) - {1,679,171)
Contributions -employer - 365,823 {365,823)
iet investment 1Tlc4me - {32,007) 32,007
Administrative expense - {324) 324
Benefit payments {32,268) (32,268) -
I~Tet Changes (1,830,349} 301.,224 (2,131,573)
Balance at June 30, 2022 $ 935,850 $ 301,224 $ 634,626
{Measurement Date June 30, 2022}
Sensitivity of 'the oPEB l i~zbil ity ~o changes in the discount ~aíe. The following presents the C~PEB liability, as well as what the f~PEB liability would be if it were calculated using a discount rate that is 1 percentage point lower {4.50 percent) or 1 percentage point higher {6.50 percent) than the current discount rate:
1 %Decrease Discount Rate 1 °/© Increase
4PEB Liability $ 762,455 $ 634,626 $ 529,329
45 DRAFT 69 of 301
~IT
+Y C~~ ~C)LETA
NO 1 ~~.7 1 ~ 1 ~~ ~~►.71L. ~~t1~L..1~L ~J~~ 1 ~~~~~►J
FOR THE FI~CAL YEAR EI'~TDEI) TC:iNE 3 ~, 2022
I~TC~TE 8-- P{~~TEiVIPLC)~ME1~IT HE.~i,L,TH ~ARE PEI~EFITS ~+C~PEB) {+Continued) E. Chan es in the Net OPEB Liability Continued}
5'ensitivity Qf the ~P'~~3 liability to changes in the healthcare cost Mend gates. The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates:
1 %Decrease Trend Rate 1 %Increase
OPEB Liability 506,586 $ 634,626 795,569
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 3fl, 2022, the City recognized OPEB expense of $177,712. As ofthe fiscal year ended June 3fl, 2022, the City reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Difference between expected and actual experience
Net difference between projected and actual earnings
Changes in assumptions
Deferred Outflows Deferred Inflows
of Resources of Resources
284,585 698,6(}7
31,470 -
- 1,719,875
$ 316,055 $ 2,418,482
Amounts reported as deferred outflows and deferred inflows of resources will be recognized in OPEB expense as follows:

Fiscal ~ear Ending June 30, ~~nount
2023 ~ {213,345)
2024 (213,345}
2025 {213,345)
2026 ~213,345)
2027 {221,212)
Thereafter ~1,027,835)
$ (2,102,427
NC)TE 9 — LEA~E PA~~BLE
On August 1, 2020, the City entered into a lease financing agreement with the California Infrastructure and Economic Development Bank or the IBank for 1 fl,flfl0,000 at an interest rate of 2.64% to reimburse the City for $1 fl,flOfl,000 of the total acqulsltlon of the City Fall property of 11,SOO,Oflfl. The City has a lease to IBank, and then IBank leases back the property upon which the City Hall and related improvements are located. The lease will be repaid in semi-annual payments for a term of 3fl years through August 1, 2050. The future lease payments are as follows:

Fiscal hear
Ending
June
^
34 Principal
!
Interest Tota
^
l
2423 í~ 228,624 '
í~ 255,142 í~
~ ~^ 483,722
2024 234,655 248,987 483,642
2025 240,850 242,710 483,560
2026 247,249 236,267 483,476
2027 253,735 229,655 483,390
2028-2432 1,372,762 1,042,815 2,415,577
2433-2037 1,563,791 849,264 2,413,055
243 8-2042 1,781,401 628,781 2,410,182
2043-2047 2,029,294 377,615 2,406,909
2048-2051 1,824,943 97,925 1,922,868
Total $ 9,777,260 $ 4,209,121 ~ 13,986,3 81
DRAFT 70 of 301
~ITY fJF ~~LETA
N(JTES TCJ THE BASF FINAN~IAL STATEMEI°~TS
FC~R THE FIS~AL YEAR. ENDED T~rNE 3 ~, 2022
i~{~TE 14 -- I~EFERREI) ~UTFLfJwS AID IFL(~VVS t~F' RE~(~~TR~E At June 30, 2022, deferred inflows of resources, reported in the governmental fund financial statements, consisted of the following:

Deferred Inflows of Resources
Unavailable Revenue
Major Governmental Fund:

Active Transportation I'rogra~n Fund $ 4Ú,ÚÚÚ
Coronavirus State &Local Fiscal Rec©very Fund 2,966,995 Total referred Inflows of Resources ~ 3,ÚÚ6,995
At June 30, 2022, deferred outflows and inflows of resources, reported on the Statement of Net position, consisted of the following:

Goverrllneníal
ACtlyltieS
Deferred i~utflows of Resources
Deferred Penslon $ 1,7e,4Ú4
Deferred {~PEB 31aÚ55
Total Deferred Gutflows of Resources 2,115,459
Deferred Inflows of Resources
Deferred Penslon 878,165
Deferred GPEB 2,418,482
Total Deferred Inflows of Resources ~ 3,296,647
I~TC~TE 11 — FZT~I~ BAL.~.I~+~~~
Nonspendable, Restricted, ~ommit~ted, Assigned, and Unassigned {deficit) fund balances consisted of the following at June 30 2022:

Coronavirus
Actin State &Local Federal
Transportation Fiscal Transportation
Park D1F Program Recovery Program Qther Total
GTIP Special Special Special Special Special Governmental Governmental General Fund Revenue Fund Revenue Fund Re~nue Fund Revenue Fund Revenue Fund Funds Funds Nonspendable
Prepaid items $ 26,176 $ - $ - $ - $ - $ - $ 1,545 $ 27,721 Restricted
Public u~rks - 13,579,984 - - - - 13,910,625 27,490,609 Community development - - 8,436,144 - - - 1,572,287 10,008,431 Community services - - - - - - 2,374,136 2,374,136
Committed
Public facilities 830,108 - - - - - - 830,108
Capital equipment 791,653 - - - - - - 791,653
Compensated leave 407,606 - - - - - - 407 606 9
Risk management 200,000 - - - - - - 200,000
Litigation defense 300,000 - - - - - - 300,000
Contingency 10,129,713 - - - - - - 10,129,713
City Hall solar removal 94,500 - - - - - - 94,500
Assigned
C1P Projects 3,165,761 - - - - - - 3,165,761
Encumbrances 3,410,472 - - - - - - 3,410,4?2
FMV adjustment 429,996 - - - - - - 429,996
Unassigned (deficit) 19,482,955 - - (14,755) - (103.
,412) (2,502,925) 16,861,863
Total ~ 39,268,940 $ 13,579,984 $ 8,436,144 $ {14,755) $ - $ {103,412) $ 15,355,668 $ 76,522,569 47 DRAFT 71 of 301
~ITY b► F ~QLEi'A
I~flTESTUTHE BASIC FINANCIAL STATEMEI~TS
F(~R. TI~E FISCAL ~EAR EI~TDED J~~;~E 3 fl, 2022
I~oTE 12 — RISK IYIAI~A~EMEI~T
A. Description of Self-Insurance_Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority {Authority}. The Insurance Authority is composed of more than 120 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section ó50o et. seq. The purpose ofthe Authority is to arrange and administer programs for the pooling ofself-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978.

Each member government has an elected official as its representative on the Board of Directors. The Board operates through arsine-member Executive Commitíee.

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

Pràmary Liabiliíy .Program
Claims are pooled separately between police and general goverlunent exposures, { 1 } The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. {2}The first layer of losses includes incurred costs up to 100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. {3}The second layer of losses includes incurred costs from 100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. {4}Incurred costs from X500,000 to X50 million are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is X50 million per occurrence. Subsidence losses also have a X50 million per occurrence limit. The coverage structure is composed of a combination of pooled self=insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available oil the Authority's website: hops://c~pia.oi-~/éovera~elrisk.-sharing-pools/.

T~~~ke~s ' ~ompensatà©n Prog~am
Claims are pooled separately between public safety {police and fire} and general government exposures. (1}The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. {2} The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. {3 }The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. {4}Incurred costs from X200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2020-21 the Authority's pooled retention is ~ 1 million per occurrence, with reinsurance to statutory limits under California workers' Compensation Law. Employer's Liability losses are pooled among members to 1 million.

Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer's Liability losses from 5 million to 10 million are pooled among members.

C. Purchased Insurance
P©llutian Legal Liabiliíy Insurance
The City of Goleta participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled properly, streets, and storm drains owned by the City of Goleta. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has a per member limit of 5 million.
48 DRAFT 72 of 301
CITAof
+
~oLLTA
~-+ I~TQTES 1 ~3 THEBANCFI~AI~CIAL S ! ATEMETS
FC}R THE FISCAL SEAR ENDED TC:E i`T, ~1i~2
I~ÍOTE ~~ -- ~~5 f~~A~~~~T (CUn~inued}
~. Purchased Insuranc~Continued~
Propet~ty Insurance
The City ofGoleta participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Goleta property is currently insured according to a schedule of covered property submitted by the City of Goleta to the Authority. City of Goleta property currently has all-risk property insurance protection in the amount of $22,553,495. There is a 10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $5,000 deductible.

Crime Insurance
The City purchases crime insurance coverage in the amount of X1,000,000 ~,~.~ith a X2,500 deductible. The fidelity coverage is provided through the Authority.

Eart~i~uake and Flo©d Insurance
The City of Goleta purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Goleta property currently has earthquake protection in the amount of lion Participant. There is a deductible of ~°/© per unit of value.

D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2021-22.
1~oTE ~ ~ — ~oI~TTII~EiCIES AI°~Til COIViIVIITEI~T
A. Leal
Various claims arld suits have been filed against the City in the normal course of business. Although the outcome of these matters is not presently determinable in the opinion of legal counsel, the resolutions ofthese matters will not have a material adverse effect on the financial condition of the City.

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

C. Construction and tither Si nificant Commitments
Revenue Neutrality C©mmitment t© Couníy ~f ~an~a Barba~a —1l~li~ig-ation +~lbligr~tion After the City's incorporation on February 1, 2002, the County ofSanta Barbara continues to have ongoing obligations to provide public services to the City and its residents. In order to ensure that the effect of incorporation was neutral as to the County, the parties agreed to have the following allocations of tax revenues in perpetuity:
• 50°/© of property tax generated by property located within the City, which would otherwise accrue entirely to the City, is allocated to the County.
• 30% of the 1 %retail sales tax revenues allocable to the City are allocated to the County. encumbrances
All encumbrances include carryover budgets from the fiscal year ended June 30, 2021. Encumbrances as of June 30, 2022, are as shown on the following page:
,•
DRAFT 73 of 301
CITY QF ~C)LETÀ
N~1TES T~ THE BASF FINANCIAL STATEMENTS
FC~R TIE FISCAL YEAR ENDED J~C;~NE 30, 2022
N{~TE 13 — CC31~TI1~GENCIES AI~II) CUlVII1~ITMEI~TT'S {+Continuec~) ~. construction and Other Significant Commitments ~ontinued~ Major Funds
General Fund 6,576,233
GTIP Speclal Revenue Fund 15,027,781
Park Development Impact Fees Speclal Revenue Fund. 4,888,993 Other GOVernnlental Funds 51,755,41 ~
Total Encumbrances 78,248,426
~anstrucíion
Listed belo~r are the projects for ullconlpleted contracts outstanding as of June 30, 2022.

F 2021-22 Pro~eCts 5,902,007
~~T~ ~ "! r ~TH~~ ~1.1~ V ~~l:l1J ~~~iv~~~~L 1' ~1.J 1 ~ ~ ~~~~ j„~~,i~ i1 ~1~~ Deficit Fund Balances
The following funds reported deficit fund balances at June 30, 2022:

Major Funds
Active Transportation Grant Special Revenue Fund $ 14,755 Federal Transportation Program Special Revenue Fund 103,412 Nonmajor Governmental Funds:
ount~ Fire DIF Special Revenue Fund 125,564
Measure Grants Special Revenue Fund 590,631
Planning Grants Program Special Revenue Fund 107,790
Monarch Butterfly Flabitat Matlagement Plan Special Revenue Fund 592,760 RSTP State Grant Special Revenue Fund 495,495
Miscellaneous Grants Special Revenue Fund 51,313
Local STIP Special Revenue Fund 4,309
SSARP Grant Special Revenue Pund 49,404
LSTP State Grant Special Revenue Fund 186,933
Housing 8~ Community Development State Grant Special Revenue Fund 53,331 CATS Public Safety Special Revenue Fund 4,537
(~BF —Southern California Edison Special Revenue Fund 3,201 TIR~P Grant Special Revenue Fund 230,458
HMGP Grant Epee ial Revenue Fund 5, 5 60
Public Administration DIF Special Revenue Fund 1,639
Excess Expenditures over Appropriations
The following funds reported excess expenditures over appropriations at June 3 0, 2022
i~onmajor Governmental Funds:
(~BF —Southern ~allfornla Edison Special Revenue Fund ~ 131,411 50 DRAFT 74 of 301
~iT~ ~~-1-'~+ ~ ~~~1'~~1`3.
-~ ~OT~►J 1 ~ i i7~ B~ ~~~ ~~1~1 ~~1.,.1~~ ►.3 1 ~`1~~lYl~l~f ~~.J FOR.i ~~E FIS~AL ~EAR ET~I~EI) J~[.~~TE 3a, 2a2~
11 V~~ ~ ~ - ~ V ~1.~~~.7~~ ~~.T~~1.,~ 1 ~ 1 ~~ ~~~li`l~~ ~~~~v~L~~~~li ~ ~V'~~1.,.~ On December 29, 2011, the California Supreme Court upheld Assembly Bill 126 {the Bill} that provides far the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the Ciíy that previously had reported a redevelopment agency {RDA) within the reporting entity of the City as a blended component unit.

The Blll provides that upon dlssalutlan ofa redevelopment agency, either the City or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of State and heal government. On January 10, 2012, the +City Council elected to become the Successor Agency far the former redevelopment agency in accordance with the Bïll as part of the City Resolution Igo. 4420.

After the enactment ofthe law, which occurred on June 28, 2011, redevelopment agencies in the State ofCalifornia cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution including the ~onlpletïon of any unfinished projects that were subject to legally enforceable contractual commitments).

In future years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations ofthe fo.~~ner redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid ïn full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance ofthose assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.

As of February 1, 2012, the housing assets, obligations, and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund private-purpose trust funds in the financial statements of the City.

C~ settlement Receivable —City of Goleta
The Agency has a settlement receivable from the City of Goleta with a balance of X2,32?,823 as of June 30, 2022. See emote ~ ~(C) for further detail.

I✓on~® Te f,yabilities
In accordance with the provisions of ABx 1 26 {Bill) and the Callfornla Supreme Court's decision to uphold the Bill, the obligations ofthe farmer redevelopment agency became vested with the funds established far the Successor Agency upon the date of dissolution, February 1, 2012. Former tax increment revenues pledged to fund the debts of the former redevelopment agency will be distributed to the Successor Agency subject to the reapportionment of such revenues as provided by the Bill. The 2011 Tax Allocation Bonds were refunded in full in the fiscal year ended June 30, 2020 with the issuance ofthe 2020 Tax Allocation Refunding Bands by reducing the interest rate for a net present value of savings of X8,8?4,835. The debt of the Successor Agency as of June 30, 2022, is as follows:

Tax allocation bonds
L,eSS deferred amount:

Premium on bonds issued
Total
Balance Balance Due within
July 1, 2421 Additions Deletions June 30, 2022 One Year ~ 11,310,000 285,ú0a ~ 11,025,000 ~ 300,000
1,385,588 - 61,811 1,323,777 61,811
~ 12,695,588 $ - $ 346,811 $ 12,348,777 $ 361,811
7'ax .~llocati©n Re~una~ing ~on~s 2d2~
The annual requirements to amortize the Tax Allocation Bonds outstanding as of June 30, 2022, are shown on the following page:
51 DRAFT 75 of 301
~~~~ ~~-~+ ~~LETí`~.
~~ 1 ~~7 1 ~ 1 ~~ ~~~1~ ~~til~i ~~~~ ►J~~ 1 ~lYl~~~►J
F+~I~ THE FI~~AL YEA~Z EI~I~E~ .TC;~E 30, 2022
1~UTE 15 — S~.T~~E~~~3R A~EN~I' TC) THE F(~RMER REI~EVEL(JPIYIEI~T A~EI~T~Y {~ontinued} B. Lang.-Term Liabilities ~~ontinued~
~1SCà.~ ~~~
EI1C~1I1~
.~Une 30 Princlpal Interest TOtal
2023 $ 300,000 $ 466,450 $ 766,450
2024 315,000 451,075 766,075
2025 325,000 435,075 760,075
2026 345,000 418,325 763,325
2027 365,000 400,575 765,575
2028-2032 2,110,000 1,705,825 3,815,825
GO.~ 3 -L0~ r 2,620,000 ~ , ~ ~~,000 .~,81 ~,OOt~
2038-2042 3,185,000 620,500 3,805,500
2043-2044 1,460,000 5~,000 1,51~,000
T©tal $ 11,025,000 $ 5,755,825 $ 16,780,825
52 DRAFT 76 of 301

REQUIRED SUPPLEMENTAL INFORMATION SECTION
DRAFT 77 of 301
Budgeted Amounts
Clriginal Final
REVENUES:

Taxes 29,242,flflfl $ 32,769,440
Intergovernmental 30,044 56,fl44
Charges for services 1,204,300 l,394,30Ú
Licenses and permits 382,900 475,900
Fine and forfeitures 140,60(} 140,600
LTse of money and property 147,500 355,500
I~}4natl©nS 53,000 65,Ofl4
Üther 306,004 546,000
T©tal revenues 31,506,300 35,802,700
EXPENDITURES•
Current.

General g©Vernment 8,253,200 9,658,719
Public safety 8,626,644 8,639,819
Public w©rks 7,619,600 11,974,418
Community development 464,204 483,178
Community services 6,139,404 7,683,98fl
Capital outlay 544,404 3,417,402
Debt service:

Principal 222,740 222,744
Interest 261,460 261,464
Variance with
Final Budget
Actual Amounts Positive {Negative}
34,805,610 $ 2,436,210
S3,47Ú {2,53fl}
1,412,413 18,113
515,712 39,812
168,350 27,750
{105,800) {461,300}
61,948 (3,052}
687,077 141,077
37,598,784 1,796,484
8,920,274
8,474,63 8
7,525,226
146,184
5,289,443
251,641
222,744
261,fl64
73 8,449
169,181
4,449,192
376,994
2,394,537
3,165,761
CITY C}F ~t~LETA
GENERAL FL1NI~
SCHEi~ULE GF ~.EVENUES, EXPENI~ITLTI~ES, ANI~ CHANGES iN FLJNI~ BALANCE BL1I)GET A~~ ACT~C.TAL
Far the Fiscal wear Ended June 30, 2fl22
Total expenditures 32,082,444 42,341,316 31,447,242
Excess of revenues aver
{under} expenditures (576,100} {6,538,616) 6,551,578
(JTHER FINANCING S(JURCES (USES}:

Transfers in 43,800 43,800 24,704
Transfers out (100,000} {603,504} (100,000}
T©tal other financing sources {uses} {56,200} {559,700} {75,296} Net change in fund balance (632,300} {7,098,316} 6,476,282 Fund balance -July 1 32,792,658 32,792,658 32,792,658
11,294,114
13,090,194
{ 19,096)
503,504
484,444
13,574,598
Fund balance -June 30 $ 32,164,358 25,694,342 39,268,944 $ 13,574,598 53 DRAFT 78 of 301
CITY ~iF ~t~LETA
C~TIP SPECIAL REVEI~d~t..TE FUND
~C~IE%~ULE QF REVE~~JES, EPENI3ITL:~I~ES, ANL3 CI~ANC~ES IN FL1NI3 BALANCE BUI)~ET ANI~ ACTUAL
For the Fiscal wear Ended June 30, 2022
Budgeted Amounts Variance with
Final Budget
t~riginal Final Actual Amounts Positive (Negative)
$ 60,000 $ 60,000 ~ {70,229) $ { 130,229}
3,015,100 3,015,100 1,232,02b (1,783,(}74}
3,075,100 3,075,100 1,161,797 {1,913,303}
110,000 110,000 4,860 105,140
2,702,865 16,754,557 1,726,776 15,027,781
2,812,865 16,864,557 1,731,b36 15,132,921
262,235 {13,789,457} (569,839} 13,219,618
14,149,823 14,149,823 14,149,823 -
$ 14,412,058 360,366 ~ 13,579,984 ~ 13,219,618
~~EVNUE:

Use of money and property
Developer fees
T©tal revenues
EXPENDITURES:

C~~rrent:

Public worï~s
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
54 DRAFT 79 of 301

CITY OFGOLETA
PA~~.. DIF SPECIAL REVEN[JE FU%STD
SCHEDULE t~F ~:EVEI~~IJES, EXPENDITL:~~ES, AND CHANCJES IN FUND BALANCE

BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Budgeted Amounts Variance with
Final Budget
Original Final Actual Amounts Positive {l~Tegative)
REVELTES:

Use of money and property $ 35,000 $ 35,oú0 ~ (50,90 l } ~ {85,901) Developer fees 81 1,000 811,000 - (811,000}
Total revenues 84ó,0o0 84ó,00o (SO,901) ~89b,901 }
E~PEI~TDITURES:

C;a~rrent:

Community services - 344,989 371,434 {26,445}
Capital outlay 455,000 S,1ó3,983 248,545 4,915,43$
Total eXpendltut'eS 455,000 5,50$,972 b 19,979 4,888,993 Net change in fund balance 391,000 {4,ób2,972) (ó7O,880) 3,992,092 Fund balance -July 1 9,107,024 9,107,024 9,107,024 -
Fund balance -June 30 9,498,024 $ 4,444,052 $ 8,43b, 144 $ 3,992,092 55 DRAFT 80 of 301
CITY C)F IT~LETA
ACTIVE TRANSPORTATION PROGRAM SPECIAL REVENUE FL;1-ND
SC~IEDULE OF REVEI~dJJES, EXPENDITLTI~ES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
For the Fiscal Year Ended June 34, 2422
Budgeted Amounts Variance with
Final Budget
original Final Actual Amounts Positive {Negative)
REVEI~~UES:

Intergovernmental - $ 4,524,379 $ 1,815,379 (2,749,444} Total revenues - 4,524,379 1,815,379 (2,749,444)
EXPENDITURES:

Capital outlay - 2,ó94,24S - 2,ó94,24S
Total expenditures - 2,ó94,24S - Z,ó94,245
Net change in fund balance - 1,834,134 1,815,379 (14,7SS~ Fund balance -July 1 { 1,834,134) (1,834,134} (1,834,134) - Fund balance -June 34 $ {1,834,134) $ - {14,755} $ (14,755) 56 DRAFT 81 of 301
~~~~ ~~ ~C~►LETA
CC►R{~NAVIRUS STATE & LC>CAL FISCAL RECOVERY SPECIAL REVE~IIJE FL;~`~ SCHEI.~I.TLE OF REVENUES, E~PENI~IT~:TIZES, ANI~ C~íANOES III FL1NI.~ BALANCE BUDGET ANI~► ACTUAL
FQr the Fiscal Year Ended June 34, 222
REVEl~T~TE:

Intergovcrnmental
Total revenues
Net change in fund balance
Fund balance -July 1
Fund balance -June ~~
Budgeted Amounts
{~riginal Final
~ 2,~~G,9~5 ~ 2,~~f,~~5
~,~6~,~~5 ~,~~~,~95
2,966,995 2,966,995
Variance with
Final Budget
Actual Amounts Positive {l~egative)
- {2,9~b,9~5)
- ~~,J~~,lJJ~
- (2,966,95}
~ 2,966,995 ~ 2,966,995 ~ - ~ ~~,~~~,~~~>
57 DRAFT 82 of 301
CITY ofGOLETA
FEDERAL TRANSP+~}RTATION PROGRAM SPECIAL REVENUE FUI~1D

SCHEDULE OF REVENCJES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
Far the Fiscal Year Ended June 3a, 2a22
Budgeted Amounts Variance with
Final Budget
original Final Actual Amounts Positive Negative}
REVENUES:

Intergovernmental $ 2~a,aaa $ 14,aó4,123 $ 254,aó7 $ { 13,81 a,a5ó} Total revenues 2~a,aaa 14,aó4,123 254,aó7 { 13,81 a,a5ó) EPENI~► ITURES:

Capital outlay 2~a,aaa 13,~59,5a3 252,8óa 13,7aó,ó43
Total eX~enditureS 29a,aaa 13,5~,5a3 252,8óC? 13,7aó,ó43 Net change in fund balance - 1a4,ó2a 1,2a7 {1a3,413)
Fund balance -July 1 { 1a4,ó 19) { 1C)4,ó 1 ~) { 1a4,ó 1 ~} - Fund balance -June 3a $ {la4,ó1~~ $ 1 $ {10)3,412} $ {10)3,413) 58 DRAFT 83 of 301
CITY OF G~LETA

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY Last 10 Years ~
As of June 30, 2022
The following table provides required supplementary information regarding the City's Pension Plan. 2422 2421 2424 2419 241
Proportion of the net pension liability
Proportionate share of the net pension liability
Covered payroll
Proportionate share of the net pension liability as
percentage of covered payroll
Plan's total pension liability
Plan's fiduciary net position
Plan fiduciary net position as a percentage oi'the
total pension liability
Proportion of the net pension liability
Proportionate share of the net pension liability
Covered payroll
Proportionate share of the net pension liability as
percentage of covered payroll
Plan's total pension liability
Plan's fiduciary net position
Plan fiduciary net position as a percentage of the
total pension liability

0.01860% 0.03250% 0.02990°/O 0.0276U% 0.02772°/fl
$ 1,005,978 ~ 3,536,142 $ 3,064,002 $ 2,659,577 $ 2,749,352 ~ 7,906,471 ~ 7,514,719 ~ 6,613,453 ~ 5,897,b73 $ 5,464,417

12.72°/© 47.06°/© 46.33% 45.10% 50.31°/©
~ 46,174,942,264 ~ 43,?02,930,887 ~ 41,426,453,489 $ 38,944,855,364 ~ 37,161,348,332 ~ 40,766,653,876 ~ 32,822,501,335 ~ 31,179,414,067 ~ 29,30$,589,559 ~ 27,244,095,376

88.29% 75.10%° 75.26% 75.26% 73.31%
2417 2416 2415

0.02565°/© 0.02318% 0.02586%
~ 2,219,286 ~ 1,590,804 $ 1,609,229
$ 5,180,046 ~ 4,778,639 $ 4,819,034

42.84% 33.29% 33.39%
~ 33,358,627,624 ~ 31,771,217,402 ~ 30,829,966,631
$ 24,705,532,291 $ 24,907,305,871 ~ 24,607,502,515

74.06% 7$.40% 79.82%
Notes to Schedule:

There were no changes in assumptions or benefit terms for the fiscal year ended June 30, 2022. *- Fiscal year 2015 was the lst year of implementation, therefore only eight years are shown. 59 DRAFT 84 of 301
CITY OF G©EFTA
SCfIEDULE OF PENSION CONTRIBUTIONS
Last 10 Years*
As of June 30, 2022
The following table provides required supplementary information regarding the City's Pension Plan. 2022 ~~~~ 2020 ~~~~ 2018
Contractually required contribution {actuarially determined) Contribution in relation to the actuarially determined
contributions
Contribution deficiency {excess)
Covered payroll
Contributions as a percentage of covered payroll
Contractually required contribution (actuarially determined) Contribution in relation to the actuarially determined
contributions
Contribution deficiency {excess)
Covered payroll
Contributions as a percentage of covered payroll
~ 1,072,458 ~ 975,305 $ 843,932 $ 696,782 $ 591,252
{1,072,458) {975,305) {843,932) (696,782) (591,252)
$ - $ - ~ - ~ - ~ -
~ 8,645,140 ~ 7,906,471 $ 7,514,719 $ 6,613,453 $ 5,897,673

12.41% 12.34% 11.23% 10.54% 10.03°/©
2017 2016 2015
$ 535,490 ~ 491,157 $ 528,634
{535,490) _ ... .. .........49.1,.15.7).. _
{528,634)
~ - ~ - $ -
$ 5,464,417 $ 5,180,046 $ 4,778,639

9.80°/© 9.48°/© 11.06°/©
N©tes to Schedule:

There were no changes in assumptions or benefit terms for the fiscal year ended June 30, 2022. ~- Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. 60 DRAFT 85 of 301
CITY ~r Vr~L~T~
SCHED[JLE (JF CHANCES IN THE QPEB LIABILITY AND RELATED RATIOS Last l0 Years*
As of June 30, 2022
Measurement Period
Total +I~PEI~ Liability
Service cost
Interest on the total DPEB liability
Difference between expected and actual experience
Changes in assumptions
Changes in benefit terms
Benefit payments
i`~et change in total UPE~ Liability
Tatai (JPEB liability -beginning
Total (~PEI~3 liability -ending (Aj
Plan Fiduciary I~tet Position
Contributions -employer
Contrlbutlons -employee
Net Investment inC©me doss}
Administrative/trustee expenses
Benefit payments
let change in plan fiduciary net position
Total plan fiduciary net position -beginning
Total plan fiduciary net position -ending [B]
I~et ()PEB Liability - ([~]-(B► ]}
Plan fiduciary net position as a percentage of the
total ()PF~3 liability
+havered payroll
Total net +t~PEB liability as a percentage
of covered payroll
2022 2021 2420 2019 2018
~ 32$,789 ~ 319,989 ~ 34$,492 $ 318,822 $ 290,904
69,274 54,$66 84,Q42 67,773 4$,449
(516,973} {16,631} 33,392 43,923 223,452
(1,679,171 } - (237,6$4} - -
{32,268} (3Q,499} {3Q,$76} {16,745} ~27,438}
(1,$30,349} 327,725 197,366 413,773 535,367
_2,766,199 2,438,474 2,241,108 1,$27,335 1,291,968
$ 935,850 ~ 2,766,199 ~ 2,43$,474 ~ 2,241,10$ ~ 1,827,335 $ 365,823 ~ - ~ - ~ - ~ -
{32,Q07} - - - -
(324}
{32,268} - - - -
301,224
~ 301,224 $ - $ - $ - ~ -
~ 634,626 ~ 2,766,199 $ 2,438,474 ~ 2,241,108 ~ 1,827,335

32.19°/© Q.00°/© 0.00% O.QO% 0.00%
$1Q,242,422 ~ $,897,999 $ 6,733,325 $ 6,923,683 ~ 6,317,404

6.2Q% 31.Q9% 36.22% 32.37% 2$.93%
DatestaSchedule:

For the fiscal year ended June 3Q, 2022:

The discount rate was changed from 2.25% to 5.50%.

The mortality tables were updated from the RP2Q 14 Mortality Table to the CaIPERS 2000-2Q 19 Experience Study.

The pre-Medicare healthcare cost trend rates increased from 3.OQ% to 8.50% ultimately decreasing to 3.45% for 2076.

The Medicare healthcare cost trend rates increased from 3.QQ% to 7.50°/© ultimately decreasing to 3.45% for 2076.

See Note 8 in the Notes to the Basic Financial Statements for further detail. *- Fiscal year 2018 was the 1st year of implementation, therefore only five years are shown. 61 DRAFT 86 of 301
CITY ©F ~OLETA
SCHEDULE IF IPEB CD~TRIBUTIC)I~1S
Last 10 Years ~
As of June 30, 2022
The following table provides required supplementary information regarding the City's ©PEA. 21122
Actuarially Determined Contribution (ADC} 169,38
Contrlbutlons In relation to the ADC {32,268}
Contribution deficiency {excess} ~ 13 7,3 ~0
Covered payroll 10,242,422
Contributions as a percentage of covered payroll 0.32%
I~fltes to Schedule:

The City opened a Section 115 Trust account administered through Public Agency Retirement Services (PARS} during the fiscal year ended June 30, 2022.

Through June 30, 2021, the plan was not administered through a qualified trust. Therefore, there was no Actuarially Determined Contribution {ADC}. Benefit payments of X30,499, X30,876, X16,745 and X27,438 were made on a pay-as-you-go-basis for the fiscal years ended June 30, 2021, 2020, 2019, and 201 ~ respectively.

See Dote 8 in the I`~otes to the Basic Financial Statements for further detail. ~- Fiscal year 2018 was the 1st year of implementation, therefore only five years are shown. 62 DRAFT 87 of 301
~~JT~~~~~~I~fT~I~~ ~11~i~ ~~~~~~l~l~T~~~i~~~iT
DRAFT 88 of 301
I~oI~11~AJOR ~.To Y ~~~~1~EI~TTAL FL~~1~~
►7~~1..~~L ~~CLr Y ~~ lJ ~ F~~~~,7
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service and capital projects.

Gas Tax - This fund is used to account for the City's share of the motor vehicle gas tax imposed under the provisions of the Street and highway Code of the State of California under Sections 2105, 210 , 2107 and ~ 107.5, which are legally restricted for the acquisition, construction, improvement, and maintenance of public streets.

Transportation - This fund is used to account for public transportation funding derived from a portion of the retail sales tax collected statewide.

Road Maintenance and Rehabilitation - This fund is used to account for the Road Maintenance and Rehabilitation additional gas tax funding as authorized by State Bill 1 which can be used for road maintenance and construction.

Measure A - This fund is used to account for funds received from none-half cent sales tax levied by the Santa Barbara County Association of Governments. The proceeds are restricted to transportation uses. Measure A was approved by the voters of Santa Barbara County by an election held on November 4, 2008.

Measure AGrants -This fund is used to account for grant funds awarded to the City by the Santa Barbara County Association of Governments. These funds are derived from Measure A funding and are awarded for specific transportation related projects.

Solid Waste Pro ram -This fund is used to account for receipts and expenditures relating to the City's solid waste program.

Public Safety Donations - Thïs fund is used to account for revenue received for public safety at the Market Place Shopping Center.

Coun , dire DIF -This fund is used to account for County fire development impact fees that help construct Fire Station l0.

Librar~~Facilities L3IF -This fund is used to account for library facilities development impact fees.

Sheriff Facilities DIF -This fund is used to account for public safety facilities development impact fees.

Housing In-Lieu -This fund is used to account for receipts and expenditures of the City's affordable housing programs.

Storm Drain DIF -This fund is used to account for storm drain development impact fees.

Planning Grants Pro ram -This fund is to account for California Planning Grants Program Award.

Enviro~lmental Proms - This fund is used to account for receipts and expenditures relating to the City's environmental mitigation programs.

Fire Facilities DIF -This fund is used to account for fire facilities development impact fees.

Lon .an~evelo~ment Plan -This fund is used to account for traffic infrastructure funding from University of California, Santa Barbara.

Public Safety - This fund is used to account for state funds under the Citizen Options for Public Safety ~CC~PS} grant program.

Monarch ButterflHabitat Management Plan -This fund is to account for state grant funds for the enhancement of the monarch butterfly habitat.

Solid Waste Rec~çlin -This fund is used to account for receipts and expenditures relating to the City's solid waste recycling program.

RSTP State Grant - This fund is used to account for state and federal grant funds to local governments for use in transit and highway projects, including street and road projects.

Comstock Plover Endowment - This fund is used to account for development related funds for use in environmental mitigation programs.

Miscellaneous Grants - This fund is used to account for state grant funds to local goverl~ments for use in various Ciíy projects.

Local STIP - This fund is used to account for state grant funds to local governments for use in transit and highway projects, including street and road projects.

Developer A r g Bement - Thïs fund ïs used to account for developer agreement funds for use in agreed upon projects with the City and developer.

Bicycle and Pedestrian DIF -This fund is used to account for bicycle and pedestrian development impact fees.

Isla Vista Library Grant - This fund is used to account for state grant to fund library services in the Isla Vista area. ~3
DRAFT 89 of 301
NONMAJOR GOVERNMENTAL FUNDS (Continued)
SPECIAL REVENUE FUNDS (Continued)
CDBG -This fund is used to account for revenues and expenditures related to the Community Development Block Grant pr©gram.

These funds arc received from the Federal Department of Housing and ~,Trban Development and must be expended exclusively on programs for low and moderate income individuals/families.

HSIP -This fund is used to accaunt far Improvements far Hollister and Goleta Valley Center Community Center Crosswalk.

SSARP Grant -This fund for the Systemic Safety Analysis Report Program Grant is used to assist cities in performing a collision analysis and identifying safety roadway issues.

Street Lighting -This fund is used to account for proceeds from a special benefït assessment to fund street lighting.

TIGER Grant -This fund is used to accaunt far support of capital projects which repair bridges or improve infrastructure to a state of good repair.

PEG -This fund is used to accaunt for funds received as local franchising fees for capital costs far public, education ar governmental access facilities.

LSTP State Grant -This fund is used to account for the Local Surface Transportation Program State grant funds for use in transit and highway projects including streets and rands.

Housing and Community Development State Grant -This fund is used to accaunt for funding from the Housing Related Parks Program to assist with new residential housing to lower-income households.

CalGES -This fund is used to account far funding through the California +C)ffice of Emergency Services for emergency preparedness, response, recovery, and homeland security activities.

FHwA — FEMA Reimbursement - Thls fund ~s used to accaunt far the Federal Highway Administration Emergency Relief Funds used for repair ar construction of federal-aid highways on federal lands which have suffered serious damage as a result of natural disasters.

GTS PublicSa__ feix -This fund is used to accaunt far public safety grants for spccial traffic and law enforcement scrvices.

OBF —Southern California Edison -This fund Is Used to accaunt far special funding from the Southern California Edison Can-Bill Financing program far the street lighting project.

Certifïed Access Sep cali,st -This fund is used to account for fees collected to increase disability access and can~.pliance with construction-related accessibility requirements. These fees are set by Senate Bill 11 ~~.

TIRCP Grant -This fund for the Transit and Intercity Rail Capital Program {TIRCP} was created by Senate Bill (SB} 8~2 and modified by Senate Bill to provide grants from the Greenhouse Gas Reduction Fund to fund transformative capital improvements that will modernize California's intercity, commuter, and urban rail systems, and bus and ferry transit systems to reduce emissions of greenhouse gases by reducing congestion and vehicle miles traveled throughout California.

HMGP Grant - Thls fund far the Hazard Mltlgatlon Grant Program is used far seismic retrofit to meet ADA standards.

Library Services -This fund is used to accaunt for proceeds of Measure L, which authorized a special tax to fund services at the Goleta Library.

Count per Capita —+Goleta Library -This fund is used for Funds received from the County of Santa Barbara on a per capita basis to support Goleta Library operations.

Buellton Library -This fund is used to account for funding received directly from the City of Buellton for Buellton Library operations.

County per Capita -Buellton Library -This find is used for Funds received from the County of Santa Barbara an a per capital basis to support Buellton Library operations.

Solvang Library -This fund is used to account for funding received directly from the City of Solvang for Solvang Library operations.

Cç~unt~per Capital -Solvang Library -This fund is used far Funds received from the County of Santa Barbara an a per capital basis to support Solvang Library operations.

Miscellaneous Grants Library -This fund is used to account for various minor grants that support the Goleta, Buellton, and Solvang Library branches.

Public Adm~nlstratlon Facllltles DIF -This fund accounts for the public administration facilities development impact fees. r,
DRAFT 90 of 301
This page is intentionally left blan~.

DRAFT 91 of 301
cIT~ aFGOLETA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2022
Special Revenue Funds
Rand
Maintenance
and Measure A Solid Waste
Gas Tax Transportation Rehabilitation Measure A Grants Program $ 2,151,137 ~ 212,425 ~ 1,186,441 $ 4,738,080 $ - $ 1,454,373 60,938 - 115,937 649 - 127,964
2,128 192 1,204 4,155 - 1,314
$ 2,214,203 $ 212,617 $ 1,303,582 ~ 4,742,884 ~ - $ 1,583,651 ASSETS:

Cash and investments
Receivables:

Accounts
Interest
Prepaid items

TOTAL ASSETS
EIA~3ILIT'IES AND FUNU BALANCES:

LIABILITIES
Accounts payable
Accrued salaries and benefits
Retentions payable
Depflsits payable
Unearned revenue
Due to other funds

TOTAL LIABILITIES
$ 421,655 $ - $ 306,740 $
13,091 - 11,901
434,746 - 318,641
126,416 ~ 27,317 $ 40,341
- - 9,977
12,178 7,666 -
- 555,648 -
138,594 590,631 50,318

FUND BALANCES
Nflnspendable - - - - _ _
Restricted 1,779,457 212,617 984,941 4,604,290 - 1,533,333 Unassigned - - - - {590,631 } -
TOTAL FUND BALANCES 1,779,457 212,617 984,941 4,604,290 {590,631} 1,533,333 TOTAL LIABILITIES AND FUND BALANCES ~ 2,214,203 $ 212,617 ~ 1,303,582 ~ 4,742,884 - ~ 1,583,651 6b
DRAFT 92 of 301
Special Revenue Funds
County
Public Safety Fire Library Sheriff Housing Storm Drain Planning Grants Donations DIF Facilities DIF Facilities DIF In-Lieu DIF Program $ 29,590 ~ - $ 220,513 $ 139,373 $ 1,248,843 $ 531,613 $ - 28 - 206 129 1,158 490 -
~ 29,618 $ - $ 220,719 $ 139,502 ~ 1,250,001 $ 532,103 $ - ~ - $ 33,811 $ - ~ - $ - ~ - $ -
_ 125,564 - - - - 1©7,790
29,618 - 220,719 139,502 1,250,001 532,103 -
- { 125,564} - - - - { 107,790}
29,6I8 { 125,564} 220,719 139,502 1,250,001 532,103 { 107,790} ~ 29,618 ~ - $ 220,719 ~ 139,502 ~ 1,250,001 ~ 532,103 ~ - (Continued)
67 DRAFT 93 of 301
CITY ©F G(JLETA
NONMAJf~R GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET {Continued}
June 30, 2022
Special Revenue Funds
Monarch
Long Range Butterfly I-Iabitat
Environmental Fire Development Public Management Solid Waste Programs Facilities DIF Plan Safety Plan Recycling
ASSETS:

Cash and investments ~ 171,043 $ 3,385,551 ~ 171,169 $ - $ - $ 85,939 Receivables:

Accounts - - - - - -
Interest 159 3,140 162 3 - -
Prepaid items - - - - -
TOTAL ASSETS $ 171,202 ~ 3,388,691 $ 171,331 $ 3 ~ - $ 85,939 LIABILITIES AND FU1~1T) BALANCES:

LIABILITIES
Accounts payable ~ - ~ 1,040 ~ 11,135 ~ - $ 119,820 ~ - Accrued salaries and benefits - - - - - -
Retentions payable - - - - - -
Deposits payable - - - - - -
Unearned revenue - - - - - 4b,605
Due to other funds - - - 3 472,940 -
TOTAL LIABILITIES - 1,040 11,135 3 592,760 46,605

FUND BALANCES
Nonspendable - - - - - -
Restricted 171,202 3,387,651 160,196 - - 39,334
Unassigned - - - - {592,760} -
TOTAL FtJIUD BALANCES (DEFICITS} 171,202 3,387,651 160,196 - ~592,760~ 39,334 TOTAL LIABILITIES AND FUND BALANCES ~ I71,202 $ 3,388,691 ~ 171,331 $ 3 $ - $ 85,939 DRAFT 94 of 301
Special Revenue Funds
Comstock ~3icycle Isla Vista
RSTP State Plover Miscellaneous Local Developer Pedestrian Library Grant Endowment Grants STIP Agreement I3IF Grant
~ - ~ 150,237 ~ 10,005 $ - ~ 615,163 ~ 221,412 ~ 54,462 - 1,239 - - - - _
- 138 - - - 264 -
~ - $ 151,614 ~ 10,005 ~ - $ 615,163 $ 221,676 $ 54,462 ~ 79,759 $ 1,114 $ 540 $
- 150,500 -
415,736 - 60,778
495,495 151,614 61,318
- ~ - ~ - ~ 177
- - - 2,415
4,309 - - -
4,309 - - 2,592
- - - - 615,163 221,676 51,870
(495,495} - (51,313) (4,309) - - -
{495,495) - (51,313} (4,309} 615,163 221,b76 51,870
~ - $ 151,614 $ 10,005 ~ - $ 615,163 $ 221,676 $ 54,462 (Continued)
69 DRAFT 95 of 301

CITY CIF GCILETA

NONIVIAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET {Continued)
June 34, 2422
Special Revenue Funds
SSARP Street TIGER
CI)BG HSIP Grant Lighting Grant PEG
ASSETS:

Cash and investments ~ - ~ - $ - $ 194,468 ~ - $ 161,464 Receivables:

Accounts 108,560 14,771 - - - 15,969
Interest - - - 19 7 - 14 S
Prepaid items 567 - - - - -
TOTAL ASSETS ~ 149,127 $ 14,771 $ - $ 194,665 $ - ~ 177,574 LIABILITIES 1~.~~1D FUND ~ALAI~ICES:

LIABILITIES
Accounts payable ~ 55,654 $ - $ - $ 3,938 ~ - $ -
Accrued salaries and benefits - - - - -
Retentions payable - - - - -
Deposits payable - - - - - _
Unearned revenue - - - - -
Due to other funds 53,477 9,135 49,444 - - -
TOTAL LIABILITIES 149,127 9,135 49,444 3,938 - -

FUND BALANCES
Nonspendable - - - - -
Restricted - 5,636 - 194,727 - 177,574
Unassigned - - (49,444) - - -
TOTAL FUND BALANCES {DEFICITS) - 5,636 {49,404) 194,727 - 177,574 TOTAL LIABILITIES AND FUND BALANCES ~ 109,127 ~ 14,771 - 194,665 ~ - $ 177,574 70 DRAFT 96 of 301
Special Revenue Funds
Housing & pBF
Community Southern
LSTP State Development FHWA - FEMA aTS +California
Grant State Grant Cal OES Reimbursement Public Safety Edison $ - $ - $ 44,001 $ 58, I07 $ - $ -
- 54,708 - - - -
$ - $ 54,708 $ 44,001 $ 58,107 $ - $ -
$ ó2,I97 $ 21,708 $ - $ - $ - $ -
2,380 - - - - _
122,356 8ó,33I - - 4,537 3,201
I8ó,933 108,039 - - 4,537 3,201
- - 44,001 58,107 - -
(186,933) (53,331) - - (4,537) (3,201)
(I8ó,933) (53,331) 44,OOI 58,107 (4,537) (3,201)
$ - $ 54,708 $ 44,001 $ 58,107 $ - $ -
(Continued)
7I
DRAFT 97 of 301

CITY OFGOLETA
N4NMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SPIFFY {Continued}
June 30, 2022
ASSETS:

Cash and investments
Receivables:

Accounts
Interest
Prepaid items

TOTAL ASSETS
LIABILITIES AI41I) FUN~i B~~LANCES:

LIABILITIES
Acceunts payable
Accrued salaries and benefits
Retentions payable
Deposits payable
Unearned revenue
Due to other funds

TOTAL LIABILITIES
Special Revenue Funds
Certi#ied County Per
Access TIRCP HMGP Library Capita - G©lets Buellton
Specialist Grant Grant Services Library Library
$ 29,477 $ - ~ - ~ 700,535 ~ 198,041 ~ 49,216
- 228,777 - 213,101 1 48
27 - - 683 246 57
- - - 705 276 -
~ 29,504 ~ 228,777 ~ - $ 915,024 ~ 198,564 ~ 49,321
$ 28,972 $ 230,902 $ - ~ 3,142 ~ 11,894 ~ 32
- - - 15,159 22,738 6,253
- 228,333 5,560 - - -
28,972 459,235 5,560 18,301 34,632 6,285
FUi~D BALANCES
Nenspendable - - - 705 276 -
Restricted 532 - - 896,018 163,656 43,036
Unassigned - (230,458) (5,560) - - -
TOTAL FUND BALANCES {DEFICITS} 532 {230,458} {5,560} 896,723 163,932 43,036 T©TAL LIABILITIES AND FUND BALANCES 29,504 $ 228,777 ~ - ~ 915,024 ~ 198,564 ~ 49,321 72 DRAFT 98 of 301
Special Revenue Funds
Total
County Per County Per Miscellaneous Public Nonmajor
Capita - Buellton Solvan~ Capita - Solvang Grants Administration Governmental Library Library Library Lïbrary Facilities I)IF Funds
$ 151,729 $ 34,295 $ 132,989 $ 43,213 $ - $ 18,570,900
- - - - - 942, 662
146 43 127 - 86 16,627
282 - 282 - - 2,112
$ 152,157 $ 3fl,338 $ 133,398 $ 43,213 $ 86 $ 19,532,301 $ 2,154 $ 35 ~ 1,418 ~ 2,361 $ - $ 1,594,268
- 8,486 - - - 65,028
- - - - - 47,216
- - - - - 154,500
- - - - - 46,605
2,154 8,521 1,418 2,361 1,725 4,176,633
282 - 282 - - 1,545
149,721 21,817 131,698 44,852 - 17,857,448
- - - - {1,639} (2,502,925)
150,003 21,817 131,980 40,852 ~1,639} 15,355,668
$ 152,157 $ 30,338 $ 133,398 $ 43,213 ~ 86 $ 19,532,301 (Concluded)
73 DRAFT 99 of 301
$ - $ - $
753,786 34,134
{ 1 ~,~ 12) { 1,324}
742,874 32,810
- $ 2,160,439 $ - $ -
656,491 - - -
- - - 1,257,33b
{5,540} {26,819} - {8,819}
- - - 344,095
b50,951 2,133,620 - 1,592,612

CITY OFGOLETA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2{122
Special Revenue Funds
Read
Maintenance
and Measure A Solid Waste
Gas Tax Transportation Rehabilitation Measure A Grants Pr©gram REVENUES:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Use of money and property
Developer fees
Donations
Other
Total revenues
EXPENDITURES:

Current:

General government
Public safety
Public works
Corrununity development
Community services
Capital outlay
Total expenditures
Excess of revenues over
{under} expenditures
OTHER FINANCING SOURCES {USES}:

Transfers in
Transfers out
Total other financing so~.~rces {uses}
Net change in fund balances
Fund balances {deficits} -July 1
Fund balances {deficits} -June 30
1,237,132 - 932,641 348,821 - 663,948
- - - 399,354 495,895 -
1,237,132 - 932,b41 748,175 495,895 663,948
{494,258} 32,810 {281,690} 1,385,445 (495,895} 928,664
- - - - - 100,000
- - - - - 100,000
(494,258) 32,810 {281,690} 1,385,445 {495,895} 1,028,664 2,273,715 179,807 1,266,631 3,218,845 {94,736} 504,669
$ 1,779,457 $ 212,617 $ 984,941 $ 4,604,290 $ {590,631} $ 1,533,333 74 DRAFT 100 of 301
Special Revenue Funds
County
Public Safety Fire Library Sheriff Housing Sturm Drain Planning Grants Donations DIF Facilities DIF Facilities DIF In-Lieu DIF Program - 181,611 - - - - -
{ 178) - { 1,410) {909) {7,467) (148) -
- - 15,8b9 30,822 - 5,42b -
(178) 181,611 14,459 29,913 {7,467) 5,278 -
- - - - - - 3s,904
t c oc~ ~c nnn
- JV1,11J 1J,üJi - LJ,VVV - JJ,JVT
(178} { 125,564) (1,392) 29,913 (32,467) 5,278 {35,904) t 1 1 b) ~ iG~,'t3~#) ~ 1,3yL) G7,y iJ `3G,~6(ï i) J,G 1 a tJJ,7V`-t) 29,79b - 222,111 109,589 1,282,468 52b,825 (71,886)
~ 29,618 ~ { 125,564) ~ 220,719 ~ 139,502 ~ 1,250,001 $ 532,103 ~ (107,790) (Continued}
75 DRAFT 101 of 301
cITY of ~aLET~
N©NMAJ~R GC)VERNMENTAL FUNDS
C(.~MBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES 1N FUND BALANCES {Continued) For the Fiscal Year Ended June 30, 2022
Sneeial Revenue Funds
Monarch
Long Range Butterfly Habitat
Environmental Fire Development Public Management S©lid Waste Programs Facilities BIF Plan Safety Plan Recycling
REVENUES:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Use of money and property
Developer fees
Donations
C)ther
Total revenues
EXPENDITURES:

Current:

General government
Public safety
Public works
Community development
Community services
Capital outlay
Total expenditures
Excess of revenues over
(under} expenditures
+ETHER FINANCING SOURCES (USES):

Tr sfers in
Transfers out
Total other financing sources {uses}
Net change in fund balances
Fund balances (deficits) -July 1
Fund balances (deficits) -June 30
~ - ~ - $ - ~ - ~ - $ -
- - - 161,285 - 8,334
(1,030} (20,509} 1,387 3 - -
- 5 8,621 - - - -
{1,030) 38,112 1,387 161,288 - 8,334
- - - 161,414 - -
- - - - 478,110 -
~
13,645 32,369 - - -
- 13,645 32,369 161,414 478,110 -
(1,030} 24,467 (30,982} (126} {4?8,110} 8,334
(1,030) 24,467 (30,982} (126} (478,110} 8,334
172,232 3,363,184 191,178 126 (114,650} 31,000
$ 171,202 ~ 3,387,651 $ 160,196 $ - $ {592,760} $ 39,334 76 DRAFT 102 of 301
Special Revenue Funds
Comstock Bicycle Isla Vista
RSTP State Plover Miscellaneous Local Developer Pedestrian Library Grant Endowment Grants STIP Agreement DIF Grant
~ - ~ - ~ - ~ - $ - $ - ~ -
- 1,913 - - - 1,850 -
- - 1,850 -
- - 404
- - 540
- 1,114 -
279,983 - 60,778
279,983 1,114 b 1,722
(279,983} 799 {b1,722)
- - - 92,3b5
- - 2©0,00© -
- - 200,000 92,365
- - ~198,150) (92,3b5)
~~, , ~,~v..j1 r ~~ ~v }, i L,~,~ - - `170, 1 Jv~ 17G,.?vJ) (215,512) {?99} 10,409 {4,309) b 15,1b3 419,82b 144,235 $ {495,495) ~ - $ {51,313} ~ (4,309} ~ b 15, lb3 $ 221,b7b $ 51,870 (C©ntinued)
77 DRAFT 103 of 301

CITY OF GQLETA

NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES {Continued) For the Fiscal Year Ended June 30, 2022
Special Revenue Funds
REVENUES:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Use of money and property
Developer fees
Donations
Other
Total revenues
EXPENDITURES:

Current:

General goveriunent
Public safety
Public works
Conrrnunity development
Communiiy services
Capital outlay
Total expenditures
Excess of revenues over
{under) expenditures
OTIIER FINANCING SOURCES (USES}:

Transfers in
Transfers out
Total other financing sources {uses}
Net change in fund balances
Fund balances {deficits) -July 1
Fund balances (deficits) -June 30
SSARP Street TIGER
CDBG HSIP Grant Lighting Grant PEG
~ - ~ - $ - $ 305,265 ~ - ~ 64,238
298,779 14,771 - - -
- - - {1,405} - (819}
298,779 14,771 - 303,860 - 63,419
- - 2,681 239,583 - 209,654
235,703 - - - -
12,271 - - - - _
26,468 - - - (27,645) -
274,042 - 2,681 239,583 {27,645} 209,654
24,737 14,771 (2,681} 64,277 27,645 {146,235}
(24,744} - - - _ _
{24,744} - - - _ _
33 14,?71 (2,681) 64,277 27,645 { 146,235)
{33) (9,135) {46,723} 126,450 {27,645) 323,809
~ - ~ 5,636 $ (49,404) ~ 194,727 $ - $ 177,574
78 DRAFT 104 of 301
Special Revenue Funds
H©using & (}~F _
Community Southern
LSTP State Development FHWA - FEMA (JTS +California
Grant State Grant Cal DES Reimbursement Public Safety Edison $ - ~ - $ - ~ - ~ _ ~ _
- 111,733 - - 36,028 281,799
- 111,733 - - 36,028 281,799
- - - - 36,233 -
187,377 - - - _ _
- 157,872 - - - _
- - 43,175 - - -
- 5,364 21,000 - - 285,000
187,377 163,236 64,175 - 36,233 285,000
(187,377} (51,503) {64,175} - (205} (3,201}
~ 1© J,J / I~ ~J 1,JV~ j (b~,1 f J) - (LU3) (j,LU 1~
444 (1,828) 108,176 5$,107 (4,332} -
~ {186,933} $ (53,331} $ 44,001 $ 58,107 ~ (4,537) $ (3,201) (Continued)
79 DRAFT 105 of 301
$ - $ - $
- 228,777
{182) -
(1 ~SL) L~~,"1 ~l "/
- $ 538,441 $ - $ -
- - 742,198 193,729
- - - 743
- - - 292
- {3,690) { 1,911) 344
_ - ~ 1,255
- 1,981 2,971 -
- 536,732 743,258 196,363

CITY OFGOLETA
NONMAJ©R GOVERNMENTAL FUNDS
C©MBINING STATEMENT flF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES {Continued} For the Fiscal Year Ended June 30, 2022
Special Revenue Funds
Certiiïed C©unty Per
Access TIRCP HMGP Library Capita - G©lets Buellton
Specialist Grant Grant Services Library Library
REVENUES:

Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Use of money and property
Developer fees
~nnati one
C)ther
Total revenues
EXPENIIITURES:

Current:

General goverrunent
Public safety
Public works
Community development
©mlTlunity ServlceS
Capital outlay
Total expenditures
Excess of revenues over
{under} expenditures
OTHER FINANCING SOURCES (USES):

Transfers in
Transfers out
Total other financing sources (uses}
Net change in fund balances
Fund balances {deficits) -July 1
Fund balances {deficits) -June 30
- - - 467,773 850,727 197,329
- 459,285 - - - -
- 459,285 - 467,773 850,727 197,329
{182} {230,508} - 68,959 {107,469} {966)
(1 ~"l) ("l"3U,SUf~) - 6~,959 { 107,469} {966}
714 50 {5,560) 827,764 271,401 44,002
$ 532 $ {230,458} $ {5,560} $ 896,723 $ 163,932 $ 43,036 80 DRAFT 106 of 301
Special Revenue Funds
To#al
+County Per County Per Miscellaneous Public Nonmajor
Capita - Buellton Solvang Capita - Solvang Grants Administra#ion governmental Library Library Library Library Facilities DIF Funds
_ ~
184,855
5,961
559
606
10,122
_ ~
179,954
(980}
- ~ - $ 3,068,383
15,500 - 4,239,808
- - 1,264,040
- - 851
(550} 2,311 (87,289}
- - 110,738
- - 11,377
- - 349,047
154,943 202,103 178,974 14,950 2,311 8,956,955
- - - - - 404
- - - - - 197,647
- - - - - 3,822,377
- - - - - 908,703
96,300 216,680 124,493 19,354 - 2,161,318
- - - - 259,418 2,817,689
96,300 216,680 124,493 19,354 259,418 9,908,138
58,643 (14,577} 54,481 (4,404} (257,107} (951,183}
- - - - - 100,000
- - - - - (24,704}
- - - - - 75,296
58,643 (14,577) 54,481 (4,404} (257,107) (875,887}
91,360 36,394 77,499 45,256 255,468 16,231,555
~ 150,003 ~ 21,817 ~ 131,980 ~ 40,852 $ (1,639) $ 15,355,668 (Concluded}
81 DRAFT 107 of 301
Li 1 Z ~i' ~.7~Li'.~~~
{~I~IMA.JC} GGVER:EI~TAL FL1I~D
GAS TAX SPECIÀL RE~EI[JE F~;IC~
SCHEDULE {~F ~:EVE1~~L1ES, EXPEI~DITL:T~~.ES, AI~TD
C~.NGES III FU~~D BALAI~ICE -BUDGET AIDANUAL
For the Fiscal Year Ended June 3ú, 2022
~~~~~~:

Intergovernmental
Use of money and property
Total reven~e~
EXPENDITURE:

Current:

Public works
Total expenditures
1`~et change in fund balance
Fund balance -July 1
Fund balance -June 30
Variance
Flnal P4Sltive
Budget Actual {Negative}
~ 832,100 $ 753,786 $ {78,314)
7,000 { 1ú,9l 2} { 17,912)
839,1 t)tl 7f-~2,~7L1 ~4~,22~~
2,969,227 1,237,132 1,732,095
2,969,227 1,237,132 1,732,095
(2,130,127} (494,258} ~ 1,635,869
2,273,715
~ 1,779,457
82 DRAFT 108 of 301
CITE ~~ [.3r~~~i~.

NDNMAJC)R ~VE~:~~T~VIENTAL FUND
T~ANSPC~RTATIDN SPECIAL R.EVENLTE FUND
SCHEDULE QF REVE~T[JES, E~PENDITUF~ES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Variance
Final P©sitive
Budget Actual {I`~egative}
$ 27,100 ~ 34,134 $ 7,034
1,000 {1,324) {2,324}
28,100 32,810 4,710
55,232 - 55,232
55,232 - 55,232
$ {27,132} 32,810 ~ 59,942
179,807
~ 212,617
REVENUES:

Intergovernmental
Use of money and property
, V tttl Ï~~ d GÍ'f t,~.GJ
EXPENDITURES:

Capital outlay
Total expenditures
I~Tet change in fund balance
Fund balance -July 1
Fund balance -June 30
V ~
DRAFT 109 of 301
CITY C)F G4~LETA
I~TDïVIAJ{JR C~QVER~~I:MEI~TAL FUND
Rt7AD MAII~ITENACE A~TD REI~íABILITATIC~i~ SPECIAL REVEI~~JE FLTI~D SCHEDULE t~► F RE~E%~I.7E5, EI'EDITURES, AID
CH.AI~ES I FUND BALAI~TCE - BUDGET AID ACTUAL
F©r the Fiscal Year Ended June 30, ZÚ22
Variance
Final Positive
Budget Actual {1~legative}
REVENUES:

Intergovernmental $ bó9,844 $ ó5b,491 $ {13,309)
Use of money and property 4,OÚ4 {5,540) {9,540)
~ ocdl ~ev~e~ïües .~,~
~ ~~,8u0
~ ~ n
~~t~,95 ~ X22,849)
EXPEN~ITU.ES:

Current:

Public works 1,717,400 932,641 784,359
Total expenditures 1,717,400 932,641 784,359
I~Tet change in fund balance X1,043,244) {281,694) 761,514 Fund balance -July 1 1,2bó,631
Fund balance -June 30 984,941
84 DRAFT 110 of 301

CITY OFGOLETA
NG~dAJC)R GC~VEI~;.NMEI~TTAL FL;íNI~
i~E.ASLTI~.E A SPECIAL I~.EV'ENLJE FLTNI)
SCHEI}ULE CAF V ~~~~~{JL~, E~E1~13J~ 1 ~..J~,
C~íANGES I~~ FUNI} B~.LA~`~TCE -BUDGET ~.NI~ ACTUAL
For the Fiscal Year Ended June 30, 2022
REVENUES:

Taxes
Use of money and property
Total revenues
E7~PEN~ITURES:

Current:

Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 3O
Variance
Final Positive
budget Actual {Negative)
~ 2,043,200 $ 2,160,439 ~ 117,239
22,OOO {26,819) (48,819}
2,065,200 2,133,620 68,420
2,604,496 348,821 2,255,bí5
2,053,459 399,354 1,654,105
4,657,955 748,175 3,9O9,í80
$ (2,592,í5S) 1,385,445 $ 3,978,200
3,218,845
~ 4,604,290
E.~~
DRAFT 111 of 301
CITY t~F ~4►LETA
I~T{~NAJO~ C~C~VERI~~ViE~TTAL FL;~`
M~ALT~Z.E A C~RAI~TTS SPECIAL Fw.EVE%~I~E FLTI~TL~
SCHEI~I.~LE ~F E~EI~TUES, EI'E~,TDITU~;.E, AID
C~íA.IGES III FL11~I~ BALAI~TCE - ~UD► +~ET AI`~I~ ~.CTUAL For the Fiscal Year Ended June 34, 2022
REVENUES:

Intergovernmental
Total revenues
EXFENI)IT'UES:

Capital outlay
`Total expenditures
Net change in fund balance
Fund balance {deficit) -July 1
Fund balance {deficit) -June 30
Variance
Final Positive
Budget Actual ~Negatïve)
1,827,154 ~ - $ { 1,827,154)
1,827,154 - (1,827,154)
1,732,418 495,895 1,236,523
1,732,418 495,895 1,236,523
94,736 (495,895) ~ (590,631 }
(94,736}
{590,631)
86 DRAFT 112 of 301
CITY l~F G~LETA
N~NAJflR ~VERNiV1ENTAL FLTNI~
~C)LII) TASTE PRCC}GRAM SPECIAL F~EVEI~~JE FUND
S~HEI~ULE t~F ~►.EVEI~~tJES, EPEI~+1i)ITU.ES, ANI~
CI~IAN~ES IN FLTNI~ BALANCE - BUI~~ET ANI~ANUAL
For the Fiscal Year Ended June 30, 2022
REVENUES:
charges for services
LTse of money and properly
C}ther
Total revenues
E~PENI)ITURES:
current:

Public worl~s
Total expenditures
Excess of revenues over
{under} expenditures
OTHER FINANCING St7URCES {USES):

Transfers in
Total other financing sources {uses)
Net change in fund balance
Fund balance ®July 1
Fund balance - June 30
Variance
Final Positive
Budget Actual (Negative)
$ 1,100,000 $ 1,257,336 $ 157,336
4,000 {$,819} { 12,819)
344,095 344,095 -
1,448,095 1,592,612 144,517
1,214,454 663,948 550,506
1,214,454 663,948 550,506
233,641 928,664 695,023
100,000 100,000 -
100,000 100,000 -
$ 333,641 1,02$,664 $ 695,023
504,669
$ 1,533,333
87 DRAFT 113 of 301

1..1 1 iV~ ~.3~~~ 1 ~
+ N~NMAJC>R C~~~ERNMEN 1 riL F~~~[~~
PU~LIC SAFETY I)~NATI(~NS SPECIAL REVE~► ~IJE F~..~TD
SC~,I~ULE ~F
~
REVEI~~JE~, E
~
XPEI~~IT~.T~~S, A~
~111ï~V ~~ ~ ~~~,.J 1 `i~ ~~L~l ~I ~✓~ - ~ V L.l1J E~ ~~~ 1-1~~ 1..J 1~L For the Fiscal Year Ended June 30, 2022
REVENUES:

Use of money and property
Total revenues
E~PENT)ITURES:

Current:

Public safety
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
Variance
Final Positive
Budget Actual Negative}
$ - ~ {17$) ~ {178}
- (178) (178)
~ - { 178) $ (178}
29,796
~ 29,618
88 DRAFT 114 of 301

CITY C)F GC)LETA
1`+i~II~1AJ{~R C~C~VEF~~~l~E1T~,L FLTi~TD
~~LTNTY FI~~E DIF SPECIAL ~'.EVEI~~JE FL1I~I~
SCHEI)LJLE CAF IZEVE~JES, EXPEI~I)ITURES, AND
CHA~tC~ES II~T FLTI~TD BALA1~~E - BUI)ET AI~TI~ ACTUAL
For the Fiscal Year Ended June 3~, 2022
REVENUES:

Intergovernmental
Total revenues
EXPENDITURES:
capital outlay
Total expenditures
%let change in fund balance
Fund balance -July 1
Fund balance {deficit) -June 3U
Variance
Final Positive
Budget Actual (Negative}
$ 931,126 181,611 ~ (749,515}
931,126 181,611 (749,515}
931,126 3t~7,175 623,951
931,126 3Q7,175 623,951
$ - { 125,564} $ { 125,564}
~ (125,564}
4 ~
~
DRAFT 115 of 301
CITY ~F G~LETA
NDl~~►~AJDR ~VEI~I~TIVIENTAL FUND
LIBRARY FACILITIES DIF SPECIAL REVE~~I.JE FUND
S+~IIEDULE OF REVE~[.JES, EXPENDITURES, AID
C~íÀN~ES I FUND BALANCE - BUDGET ANDANUAL
FOr the Fiscal Year Ended June 30, 2022
Variance
Final Positive
Budget Actual {Negative)
~ 500 (1,410) ~ {1,910)
89,700 15,89 (73,831)
90,200 14,459 X75;741)
89,000 15,851 73,149
89,000 15,851 73,149
$ 1,200 {1,392) $ (2,592)
222,111
$ 220,719
REVENUES:

T,Jse of money and pr©party
Developer fees
T©tal revenues
EXPENDITURES:
current:
community services
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
90 DRAFT 116 of 301
CITY CIF ~~►LTA
I~C)I~AJC}R C~VER~~l'vIE~TTAL FL1I~I~
SHERIFF FACILITIES I)IF SPECIAL REVE~I.JE FIJT~D
SC~IEDULE ~F REVEI~~IJES, E~PEI)ITLTI~ES, AID
CHANCES II`~ FLTNI~ BALANCE - BURET Al'~I~ ACTUAL
Far the Fiscal Year Ended June 30, 2}22
REVENUES:

Use of money and property
Developer fees
Total revenues
E~PENI)ITURES:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
Variance
Final Positive
Budget Actual (Negative)
~ 300 $ {9fl9} ~ {1,209}
28,800 30,822 2,022
29,100 29,913 813
70,281 - 70,2$1
70,281 - 70,281
{41,181} 29,913 ~ 71,094
109,589
139,502
91 DRAFT 117 of 301
CITY ~F GQLETA
N~JNAJQR. G{~VE~I~TMENTAL FUND
I-~(.~USING IN-LIEU SPECIAL REVENUE FUND
SCHEDULE ~iF T:EVE~~IJES, EXPENDITURES, AND

CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
VaClaiiCE'.
~lllc7l P~?S1flY€'
%lif~~et f~Ctlldl {Ne~ilflVE'•)
~ 6,000 $ {1,467) ~ { 13,461)
6,000 {7,461) (13,467)
25,000 25,000 -
25,000 25,000 -
~ (19,000) (32,461) $ (13,467)
1,282,46~
$ 1,250,001
REVENUES:

LJse of money and properly
Total revenues
EXPE1tiTDITURES:

Current:

Community services
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
92 DRAFT 118 of 301
CITY C)F ~©EFTA
N(.~NiVIAJ~~ GOVE~IViENTAL FUND
STORIVI DRAIN DIF SPECIAL ~~E~ENiJE FUND
SCHEDULE CAF RE`TE~dIJES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Far the Fiscal wear Ended June 30, 2022
Variance
Final Positive
Budget Actual {Negative}
100 $ { 148} $ {248)
345,300 5,426 {339,874}
345,400 5,278 (340,122)
54,000 - 50,000
50,000 - 50,000
~ 295,400 5,278 ~ {290,122}
526,825
~ 532,103
REVENUES:

1.Jse of money and property
Developer fees
Total revenues
E~PENIIITURES:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
93 DRAFT 119 of 301
~I 1 Y (~F GQLETA
I~t~I~~~1AJ{~R C~~3VE~~~11~iEI~TAL FLTI~TI~
PLA~~TTT~TC7 ~RANTS PRO~F~.AM SPECI~L REVEi~~[..TE FL1NI) SCI-~EI~ULE (~F REVEI~~IJES, EXPENZ)ITLT~~E~, ANI.~
CHA%TC~ES IN FLT~TD BALAI~CE -~3UDC~ET AI~I~ ACTLTÀL
F©r the Fiscal Dear Ended June 30, 21322
REVENUES:

Intergovernmental
Total revenues
EXPENDITURES:

Current:

Community development
Total expenditures
~1et change in fund balance
Fund balance (deficit) -July 1
Fund balance (deficit} -June 30
Variance
Final P+asitive
Budget Actual {l~egative}
$ 114,881 $ - $ (114,881}
114,881 - (114,881}
42,995 35,904 7,Ú9l
42,995 35,904 7,091
$ 71,88 {35,904) $ (107,790}
(71,88b}
$ (107,790}
94 DRAFT 120 of 301
CITY {?F GtJLETA
NDNIVIAJUR. ~C~VEIIVIENTI-iL FUND
EN~IRC)NENTAL PRDGRÀS SPECIAL REVENUE FUND
SCHEDULE OF F~EVENUES, EPENDITUII.ES, AND
CHANCES IN FUND BALANCE - BI.TDCIET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Variance
Final Positive
Budget Actual (I~Tegative}
500 í~ (1,030) í~ (l,53ú}
500 (1,030) (1,530)
x,400 9,40Q
x,400 - 9,400
$ (8,900) (1,030} ~ 7,870
172,232
~ 171,202
REVENUE:

Use of money and property
Total revenues
EPEN~ITURE~:

Current:

Public ~orlcs
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
95 DRAFT 121 of 301
l..l l ~ ~~ 1T~L~~~ ~^
+ -+ ~~1~I~L`"i~~R ~~~~~~~.1~i~Ll~i 1 ~L ~~~Í~
FIRE FACILITIES DIF ~I'ECIAL RE~E~TUE FLT~II)
SCHEI~LTLE C~F REVE~I.TES, E~PEI~I~ITLTRE~, AND
CHA%~+~ES I~ FLT~tD ~3AL~NCE - BUI~~ET AI~D ACTTJAL
For the Fiscal ~ear Ended June 30, 2~}22
Variance
Final Positive
Budget Actual {Negative)
$ 15,OOfl ~ (20,509} ~ (35,509}
2,905,694 58,621 (2,847,073}
2,920,694 38,112 (2,882,582}
4,856,012 13,645 4,842,367
4,856,012 13,645 4,842,367
(1,935,318} 24,467 ~ 1,959,785
3,363,184
. ~ 3,387,651
REVENUE:

Use of money and property
Developer fees
Total revenues
E~PENTUi~E:

Capital outlay
Total expenditures
met change in fund balance
Fund balance - July 1
Fund balance -June 30
96 DRAFT 122 of 301
CITY t~F G{)LETA
NONI~~IA.JC►R. ~QVE~iV1ENTAL FLTNL3
LAN RANEE DEVELt~PENT SPECIAL REVENUE FLII~
SCHEIlLTLE ~F REVENUES, E~PENI~ITURES, ANI~
CHANCES IN FLTNI~ BALANCE - BUI~~ET ANI.~ ACTUAL
For the Fiscal Year Ended June 30, 222
REVENUES:

Intergovernmental
Ilse of money and property
Total revenues
EXPENLiITURES:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
Variance
Final Positive
Budget Actual (Negative)
$ 3,861,177 - $ (3,861,177}
- 1,387 1,387
3,861,177 1,387 (3,859,790)
3,354,883 32,369 3,318,514
3,350,883 32,369 3,318,514
~ 510,294 Gú,982) ~ (541,276)
191,178
~ 160,196
97 DRAFT 123 of 301
CITY OF +~OLETA
I~NAJ~ C~{~VER;~I~IETAL FLTIJ

PUBLIC SAFETY SPECIAL REVEILTE FLTI)
SCI-~EI~ULE C}F E~IEUES, EPEI~TL}ITU~:ES, AI~II)
CI~Ah~ES II~T FLT~rTI~ BALANCE - BUI~C~ET AID ACTUAL
Far the Fiscal Year Ended June 30, 2}22
REVENUES:

Intergovernmental
Use of money and property
Total _revenues
EPENI)ITLTRES:

Current:

Public safety
Total expenditures
I~1et change in fund balance
Fund balance -July 1
Fund balance -June 3ú
Variance
Final Positive
Budget Actual {Negative)
161,285 161,285 $ -
- 3 3
161,285 1 b 1,288 ~
161,411 161,414 (3}
1b1,411 161,414 {3)
~ (126} { 126} ~ -
126
98 DRAFT 124 of 301
CITE ~;F G~LETA
N~3Nii~AJC~R GC.~VER;.~TTVIENTAL FUND
1VIONARCH BUTTERFLY HABITAT MANAGEMENT PLANT SPECIAL REVENUE FUND SCHEDULE (~F REVENUES, EXPENDITURES, AND
CHANCàES ITT FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 3 ú, 2022
REVENUES:

Intergovernmental
Total revenues
EXPENDITURES •
Current:

Community development
Capital outlay
Total expenditures
Net change in fund balance
Fund balance {deficit) -July 1
Fund balance (deficit) - June 3O
Variance
Final Positive
Budget Actual {Negative)
$ 3,900,000 ~ - $ {3,9úO,000}
3,900,000 - {3,900,000)
- 478,1 lO {478,110)
3,785,350 - 3,785,350
3,785,350 478,110 3,307,240
$ 114,650 {478,110) ~ {592,760]
{ 114,650)
$ (592,760}
99 DRAFT 125 of 301

CITY C)F ()LETA
NONNiAJOIZ ~GOVEI~:NMENTAL FUND
SOLID BASTE RECYCLING SPECIAL REVE~IIJE FUND
SCHEDULE OF ~;.EVENLTE, E~PENDITU~;ES, AND

CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For the Fiscal Year Ended June 3q, 2422
REVEI~TUES:

Intergovernmental
Total revenues
~~~11L~1 ViiJs
Current:

Publlc w©rks
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance - June 30
Variance
Final Positive
~ud~et Actual {1~1e~ative}
8,000 ~ 8,334 $ 334
8,000 8,334 334
8,200 - 8,200
S,20Ú - 8,240
(200) 8,334 8,34
31,0x0
39,334
100
DRAFT 126 of 301
CITY OF+GOLETA
%T~I`~AJ~~ +~fl~lE~1V1Ei'~TAL FLTI~
~ZSTP STATE +~ZAZARTT SPECIAL REVENUE FLT~I)
SCHEI~LTLE CJF ~~EVENUES, EXPENDITURES, ANI)

CHANCES IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 222
REVEN~Es:

Capital outlay
Total expenditures
T~Tet change in fund balance
Fund balance (deficit) -July 1
Fund balance (deficit) -June 34
Variance
Final Positive
Budget Actual {Negative)
~ 565,315 ~ - ~ (565,315)
565,315 - (565,315)
214,988 279,983 (64,995)
214,988 279,983 (64,995)
$ 35©,327 (279,983) ~ (63ú,3l4)
(215,512)
~ (495,495)
141
DRAFT 127 of 301
CITY OF ~C~LETA
N(Ji~iAJC} +GC}VERNIVIETAL FLTI~TD
CC.~1~S~TC~CI PLOVER EI~I~C~V~TIViEI~T SPECIAL REVEI~iLTE FLTI~ SC~IEDULE CAF ~;.EVEUES, EPEI~DITURES, ANI~
CI-IAI~E I%T FLTI~I~ BALANCE - BUI.~GET AI~tI~ ACTUAL
For the Fiscal Year Ended June 30, 2022
REVENUES:

Use of money and property
Total revenues
E~PENI~► ITURES:
current:
community development
Total expenditures
I~tet change in fund balance
Fund balance {deficit} - July 1
Fund balance -June 30
Variance
Final P©sitive
Budget Actual {Negative)
$ 2,000 $ 1,913 $ {87)
2,OOo ~,~ ~ ~ (87}
2,000 1,114 886
2,000 1,114 886
$ - 799 $ 799
{799}
$ -
102
DRAFT 128 of 301
CI 1 Y +dF ~OL~+ ETA
NDNIVIAJDR. V ~VER
-~
~MEN
+
TALFL1I~
MISCELLANEOUS GRAN 1 SPECIAL RE~IEUE FLTI~
SCHEDULE OF REVENUES, EPENDITUR.ES, AND
CI~ANOES IN FUND BALANCE -BUDGET AND ACTUAL
For the Fiscal Year Ended June 3C}, 2{}22
REVENITES:

Intergovernmental
Total revenues
EXPEI~IIITURFS:

Current:

General government
Public works
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance {deficit} - June 30
Variance
Final Pasitive
Budget Actual (l~tegative}
61,333 $ - ~ 01,333)
(1,333 - (61,333}
9,839 404 9,435
- 540 (544}
61,333 60,778 555
71,172 ~ 1,722 9,454
(9,839} 01,722) ~ {51,883}
10,409
~ ~51,313)
103
DRAFT 129 of 301
CITY +~F G~LETA
NDNiViAJDR C~~QVEI~~.N~ViENTAL FUND
LDCAL STIP SPECIAL ~~EVENUE FUND

SCHEDULE CAF REVENUES, EXPENDITURES, AND

CHANCES IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, X022
REVENUES:

Intergovernmental
Total revenues
E~PENI)ITURES:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance {deficit} -July 1
Fund balance {deficit} -June 30
Variance
Final Positive
Budget Actual (Negative}
$ 11,38ó,b94 $ - $ {11,38ó,b94)
11,38ó,b94 - {11,38ó,b94)
11,372,000 - 11,372,040
11,372,000 - 11,372,000
~ l4,ó94 - ~ {l4,ó94)
(4,309)
~ {4,300
104
DRAFT 130 of 301
CITY (~F GCILETA
NfJNAJC►R GC~VE~~NENTAL FUND
DEVELQPER AC~REEI'tfiENT SPECIAL REVENUE FUND
SCI~EDULE (JF ~;EVENUES, EXPENDITURES, AND
CI~ANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
Variance
Final Positive
Budget Actual {T~legative}
$ 1,500 ~ - $ {1,500}
1,500 - {1,500}
270,000 - 270,000
270,000 - 270,000
{268,500) - 26,500
615,163
~ 615,163
REVEI`~tUES:

Use of money and property
Total revenues
E7~PEI~TD► ITURES:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
105
DRAFT 131 of 301
~ITY tJF ~ULETA
NC~NiVIAJfJR ~C~~TEI~~NMENTAL FLTI~ID
BICYCLE PEDESTRIAI~ DIF SPECIAL ~~.E~E1~UE FLTI~I~►
SC~IEDULE ~F REVE~ZUES, E~PEI~DITURES, A~D
CHA~GES I~ FLTI~TD BALAi~CE - BUD~ET AI~D ACTUAL
F©r the Fiscal ~ear Ended June 3ú, 2422
Variance
Final Positive
Budget Actual {Negative}
~ 144 $ 1,850 $ 1,750
259,944 - {259,900}
260,444 1,854 058,150 j
200,000 200,000 -
204,440 2O0,4ú0 -
$ 64,044 (198,154) $ 058,150)
419,826
$ 221,676
REVENUES:

Use of money and property
Developer fees
T otai revenues
EXPENDITURES:

Capital outlay.

Total expenditures
l~Tet change in fund balance
Fund balance -July 1
Fund balance -June 30
146
DRAFT 132 of 301

1...~~~ ~~ ~7rVL~TA
N(~NïV1AJOR GC~VE~;NMENTAL FLTNI~
ISLA VISTA LIBR.ÀRY GR.AI'+iT SPECIAL REVEI`~TUE FL1NI~ SCHEI)IJLE t)F REVENUES, EPENI~ITU~~ES, AND
CHANCES IN FUND BALANCE - BUDGET ANI3 ACTUAL
For the Fiscal Year Ended June 3 ~, 2022
REVEN~JES:

Community services
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
Variance
Final Positive
Budget Actual (Negative)
$ - ~ - $ -
144,235 92,365 51,870
144,235 92,365 51,870
(144,235} (92,365} $ 51,870
144,235
~ 51,870
107
DRAFT 133 of 301
CITY QF G{~►LETA
NflNMAJC)I~ C~VEI~;~~11VIENTAL FUND
CI3BG SPECIAL ~:E~EI~~[JE FUND
SCI~EI~ULE ~F REVEI~~tJES, E~~I'ENI~ITLTI~~ES, ANI.)
CI~í~.NCES IN FITND BALANCE - I3LTL}~ET ANI~ ACTI.JAL
For the Fiscal dear Ended June 30, 2022
REVENUES:

Intergovernmental
Total revenues
EXPENDITURES:

Current:

Community development
Community services
Capital outlay
Total expenditures
Excess of revenues over
{under) expenditures
OT~IE~ FINANCI~~TG ~C~UnCES {USES):

Transfers out
Total other financing sources {uses)
Net change in fund balance
Fund balance {deficit) -July 1
Fund balance -June 30
Variance
Final Positive
Budget Actual {Negative)
~ 701,081 $ 298,779 $ {402,302)
701,081 298,779 (402,302)
240,878 235,703 5,175
- 12,271 {12,271)
417,903 26,068 391,835
658,781 274,042 384,739
42,300 24,737 { 17,563)
{42,300) {24,704) 17,596
{42,300) {24,704) 17,596
~ - 33 ~ 33
{33)
$ -
108
DRAFT 134 of 301
CITY C}FGOLETA
{~I~TIVIAJC}R G{~VERI~~~IENTAL FLTI~TI~
HSIP SPECIAL REVEI~~JE FULL}
SCI-IEI~ULE ~F EVEI~~JES, EPEI~IT[:T~ES,AIS
C~íAGES I FUNL) BALANCE - BUL>CTET ATL> ACTUAL
For the Fiscal Year Ended June 30, 2022
REVENUES:

Intergovernmental
Total revenues
EXPEI~IDITURES:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance {deficit) -July 1
Fund balance - June 30
Variance
Final Positive
Budget Actual {I~Iegative)
$ 395,371 ~ 14,771 ~ {3$0,600)
395,371 14,771 {3$0,600)
3$0,600 - 3$0,600
3$0,600 - 3$0,600
~ 14,771 14,771 ~ -
{9,135)
$ 5,636
109
DRAFT 135 of 301
CITY 4F Gt~LETA
NC~AJt~R ~f.~VER;NEI~TTAL FL;1~~
SSAP C~RA%1T SPECIAL RE~EI~~I.TE FT~TI~
S+CHEI~LTLE OF REVE%~IJES, EXPEI~II~ITI.JRE~, ANI~
CHA~C~ES I FLTI~TI~ BALANCE - BUI.~GET AID ACTUAL
For the Fiscal Year Ended June 30, 2022
Variance
Final POSitiVe
Budget Actual (Negative)
$ 53,000 $ - $ (53,000}
53,000 - (53,000)
6,277 2,681 3,596
6,277 2,6$1 3,596
$ 46,723 (2,681) $ (49,404)
(46,723)
$ (49,404)
REVENUES:

Current:

Public worl~s
T©tai expenditures
Net change in fund balance
Fund balance (deficit} -July 1
Fund balance {deficit} -June 30
110
DRAFT 136 of 301
~ITY ~3F ~C3LETA
I~C~I`~TI~iAJ~R C~~VE~:~~11VIE1~TAL FLT~1I~
ST~:EET LIG~TIN~ ~PECIAL REVE~~LTE FI.T.C~TI~
SCHEI~ULE C~F ~~ EVET~~IJES, E~PEI~I)ITLT~~.ES, AI~I~
CHAI~TCIES I~T FL1NI) BALAI~TCE - BUD~ET Ai~I~ ACTUAL
F©r the Fiscal Year Ended June 30, 2022
Variance
Final Positive
budget Actual {Negative}
~ 3(}5,5(}0 ~ 305,265 ~ {235}
500 { 1,405} { 1,905}
306,040 343,860 {2,140}
339,844 239,583 104,261
18,004 - 18,400
357,844 239,583 118,261
~ {51,844} 64,277 $ 116,121
126,450
~ 194,727
REVENUES:

Taxes
Use of money and property
Total revenues
EXPENDITURES:

Current:

Public w©rl~s
Capital outlay
Total expenditures
let change in fund balance
Fund balance -July 1
Fund balance -June 34
DRAFT 137 of 301
CITY (~F GOI~ETA
NfJI~1tf1AJOR +Gt~VER~~TMENTAL FL1NI~
T
+
IVE
+
~. C~RAI~T 1 SPECIriL ~~
~EVE~~~UE F~..JI`~D
+ ~J~i 1L~~
±
~~ 4JF ~ V ~~ ~i V ~rJ, ~11~E~~1T
+
~..
+
~~►.3, ~1V L
CHAI~TC~ES IN FL1NI~ F3ALAI~T~E - ~UI)VLT AI~~ ACT V AL F©r the Fiscal Year Ended June 31~, 2(}22
REVENITES:

Intergovernmental
Total revenues
EXPEN~ITURE~:
capital outlay
Total expenditures
let change in fund balance
Fund balance {deficit} -July 1
Fund balance -June 30
Variance
Final P©sitive
Budget Actual {Negative)
- - $ -
(27,645) (27,645} -
{27,645) {27,645} -
~ 27,645 27,645 ~ -
{27,645)
~ -
112
DRAFT 138 of 301
CITY (~F G~LETA
NC)NAJÚ~. ~C.~VER:~~MENTAL FL;~~D
PEA SPECI~.L T;.EVENLTE FUT~
S~HEI~I.ILE CAF ~~EYENIJES, E~~PENI~IT~JRE, AID
C~íANCCES IN FUND BALANCE - BIJI~GET ANI~ A~TU.AL
Fflr the Fiscal Year Ended June 30, 2022
Variance
Final Positive
Budget Actual (Negative)
REVENUES:

Taxes
Ilse of money and property
Total revenues
EXPEN~ITURESo
current:
public works
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
~► 76,000 ~ 64,238 ~ (11,762}
1,000 (819} (1,819}
77,000 63,419 (13,581}
215,000 209,654 5,346
215,000 209,654 5,346
~ (138,000} (146,235) $ (8,235}
323,809
~ 177,574
-- ....
113
DRAFT 139 of 301
CITY OF G~LETA
I~Tt~I~11~iAJ~P~ G~VE~Z.~~ViENTAL FUND
LSTP STATE GRANT SPECIAL REVE~~tJE FL.T1~I~
SCI~DULE ~F ~~EVEdTJES, E~PENI~ITU~~.ES, ANI~
C~íANCrES IN FL1NI~ BALANCE - BUI~~ET ANI~ ACTUAL
For the Fiscal Year Ended June 30, 2022
REVENUES:

Intergovernmental
Total revenues
EXPENDITURES:

Current:

Public works
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance (deficit) -June 3~
Variance
Final Positive
Budget Actual {Negative)
483,992 $ - ~ {483,992)
483,992 - {483,992)
483,992 18?,3?? 296,615
483,992 187,3?? 296,615
$ - {18?,3??) $ {187,3??)
444
{ 186,933)
~~
DRAFT 140 of 301

1.~TY ~~ ~~~~ 1
Nt)NMAJCJR GC)VE~I~ENTAL FL;i~~
HOUSING ANI~ Ct~11~I1~~TJNITY I~EVEL~PI`~1ENT STATE CàRANT SPECIAL T;.EVENUE FUND SCI~EI~ULE CAF ~~EVEI~~IJES, E~I'ENI~ITLTI~,S, ANL~► CHANGES Iii FLTNL} BALANCE -BUDGET ANI3 ACTUAL For the Fiscal Year Ended June 3(?, 2422
~EVEN~~s:

Intergovernmental
Total revenues
EXPBNT)IT°U~FS:

Current:

Community development
Capital outlay
Total expenditures
Net change in fund balance
Fund balance (deficit} -July 1
Fund balance (deficit} -June 30
variance
Final Positive
Budget Actual (Negative}
$ 34S,35ó ~ 111,733 $ (233,653}
34S,38ó 111,733 (233,653)
335,194 157,872 184,322
5,364 5,364 -
343,SSS 1ó3,23b 180,322
~ 1,525 {51,53} $ (53,331)
(1,828)
~ (53,331 }
~
DRAFT 141 of 301
CITY ~F ~~LETA
I~T~I~iIVIAJC~R GC}VEI~:I~1~IVIENTAL FLT~tD
CAL DES SPECIAL ~~EVEI~TUE FUt~~
SCI-íEI~ULE ~F REVEI~~I.JES, EPENI~ITIJ~ES, AI~Z)
C~íAI~TGES Il~T FU~TI~ I3ALAI~CE - BUI~~ET ANTI) ACTUAL For the Fiscal wear Ended June 34, 2422
REVENUES:

Current:

C©mmuniiy serdices
Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 34
Variance
Final P©sitive
Budget Actual {l~legative}
~ - ~ - ~ -
93,945 43,175 54,774
21,440 {21,440}
93,945 64,175 29,770
$ {93,945} {64,175} $ 29,774
14,176
$ 44,441
116
DRAFT 142 of 301
CITY ()F G~LETA
NC~NIVIAJ{~R GQVETMENTAL FL1NI.~
FHWA-PEA ~;.EIMBLTRSEMENT SPECIAL F~.EVENLTE FL1NI~
SCHEDULE {~F REVE~~t.TES, EPENI.~ITUT;ES, AI~TI~
CHANGES IN FLTNI~ BALANCE -BUDGET ANTI) ACTUAL
For the Fiscal wear Ended June 34, 2022
REVENUES:

Intergovernmental
Total revenues
EXPENI)IT'URES:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
Variance
Final Positive
budget Actual {Negative}
~ $7,746 ~ - $ ($7,740
$7,746 - {$7,746)
$7,746 - $7,746
$7,746 - $7,746
~ - - ~ -
5 $,107
$ 5$,107
~
DRAFT 143 of 301
CITY ~F ~©EFTA
N~NT~IAJQR CC~VE~~~TMENTAL FUND
STS PUBLIC SAFETY SPECIAL ~;.EVE~~I.JE FUND
SCHEDULE OF F~EVENUES, E~PENDITUR.ES, AND

CHANCES I FUND BALANCE - BUDGET ANTI) ACTUAL
For the Fiscal Year Ended June 30, 2022
l~EVEI~TUE~:

Intergovernmental
Total revenues
EXPENTjITURES:

Current:

Public safely
Total expenditures
Net change in fund balance
Fund balance (deficit} -July 1
Fund balance (deficit) -June 30
Variance
Final Positive
Budget Actual (Negative}
40,000 36,028 ~ (3,972}
40,000 36,028 (3,972}
35,668 36,233 (565)
35,668 36,233 (565)
4,332 (205} (4,537)
(4,332}
(4,537)
DRAFT 144 of 301
CITY OF+GOLETA
NC)NIVIAJOR O~VEI~~rT1VENTAL FUND
C3BF - C)UTI~I~;N CALIFOT;NIA EDISflN SPECIAL REVEI~~IJE FUND SCI-IEDULE (~F EVEI~~IJES, E~LPEII3ITLTRE, A
CI-IAIOES I FUND BALANCE - BURET AI~I~ ACTUAL
Far the Fiscal Year Ended June 30, 222
REVENUES:

Intergovernmental
Total revenues
111 1./~1 J. ~/ A./~ s
Capital outlay
T©tal expenditures
Net change in fund balance
Fund balance -July 1
Fund balance {deficit) -June 30
Final
Budget
~ 785,000 $
785,000
153,589
153,589
$ f31,411
Variance
Positive
Actual {l~egative)
281,799 $ {503,201)
281,799 {503,201)
285,000 (131,411)
285,000 {131,411)
{3,201) ~ {634,~ 12)
~ {3,201)
~~
DRAFT 145 of 301
CITY t~F ~-ULETA
NQI~I~IAJ~R OVEI~~~TMEI~TTAL FLTNI~
CERTIFIED► ACCESS SPECIALIST SPECIAL, F~EVEI~~[JE FLTT~ SCHEI?ULE (~F ~~.EVENUES, E~PEI~I~ITU:ES, AID
CHAI~TCTES I FL1NI~ BALANCE - BUDCiE`T AI`~I~ ACTUAL
For the Fiscal Year Ended June 30, 2022
REVENUES:

Ilse of money and property
Total revenues
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
Final
Budget Actual
100 $
100
100
Variance
Positive
{Negative)
(182) ~ ~(282)
(1$2) (282)
(182) ~ (282)
~
532
124
DRAFT 146 of 301
CITY (3F G~LETA
NC)NAJ{~R GC~VER~TIVIEI'~TTAL FL1NI~
TIR.CP GRAFT SPECIAL R.E~ENLTE FL1NI~
S~HEI~ULE GF RE~EI~~IJES, E~PENI~ITUF;ES, AND
C~~A.I'~GES IN FLTNI~ BALAI'~CE - BUDGET AII~ A~TIJAL
For the Fiscal wear Ended June 3(}, 2022
REVENUES:

Intergovernmental
T©tal revenues
ExPEN~► ~TURES:
~apital outlay
Total expenditures
Net change in fund balance
Final
Budget
1,286,673
1,280,673
1,286,723
1,286,723
Variance
Positive
Actual (Negative}
228,777 $ (l,ú57,89{)
228,777 (1,057,896)
459,285 827,438
459,285 827,438
~ (50} (230,508) ~ (230,458)
Fund balance -July 1 50
Fund balance {def cit) -June 30 $ (230,458}
121
DRAFT 147 of 301
CITY (~F ~(~►LETA
I~TC~I~l1~IAJC)R. C~C)VEI~TMENTAL F~,TD
I~[ÏVIC~P ~F.ATT SPECIAL REVE~~[JE FUND
SCHEDULE (~F REVE%~[JES, EXPENDITURES, ADD
CHAC~ES I FLTI`~D BALAI`~CE - I3UDC~ET A~TD ACTUAL
Far the Fiscal Year Ended June 30, 2422
REVENUES:

Intergovernmental
`Total revenues
ExPE1~DITVREs:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance {deficit} -July 1
Fund balance (deficit) -June 34
Variance
Final Positive
Budget Actual (1~legative}
$ 3,858,624 - ~ {3,85$,624}
3,858,624 - (3,858,62©>
3,853,464 - 3,853,464
3,853,464 - 3,853,464
$ 5,564 - ~ (5,564}
(5,564}
$ {5,564)
122
DRAFT 148 of 301
CITY ClF ~{~►LETA
N~NIVIAJt~R ~(~VERNIVIENTAL FLTNI3
LIBRARY SERVICES SPECIAL ~►.EVE~~IJE F~.TNI)
SCHEI3ULE CAF REVEI~~JES, EPENDITL~~ES, ANI)
CFIA~~ES IN FLTNI~ BALANCE - BUI)C~ET .ANI~ ACTUAL
For the Fiscal Year Ended June 3~, 2422
REVENITES:

Taxes
Use of money and property
Qther
Total revenues
EXPENDITUT~.ES:
current:

Community services
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 30
Variance
Final Positive
Budget Actual (I~Tegative)
$ 539,60fl $ 538,441 $ { 1, ~ 59)
2,Oú {3,69} {5,69}
- 1,981 1,981
541,6fl(l 536,732 (4,868}
553,712 467,773 85,939
553,712 467,773 85,939
$ {12,112} 68,959 $ 81,71
827,?64
$ 896,723
123
DRAFT 149 of 301
CITY C)F ~ULETA
~~1~ ~~J~~ ~.~t~~~~~~1 ~ ~ti.L ~~.~~
CQLTT~TTY PER. CÀPITAL - ~C~LETA LI~RARY SPECIAL REVEI~~[JE FI..J~ SCHEI.~ULE ~F R.E~E~~I.JES, EXPEI~DITLTF:E~, AI~I)
CHA~tJES IN FLTI~TI~ ~~L~i~CE - BT,JI)~ET AI`~I~ ACT~.JAL For the Fiscal ~ear Endcd June 30, 2022
Variance
Final P©sitive
Budge# Ac#ual ~l~egative}
REVENUE:

Intergovernmental $ 742,197 $ 742,198 $ 1

1.Jse of money and property 544 (1,911} (2,411}
Other - 2,971 2,971
Total revenues 742,697 743,258 561
EXPENDITURES:
~ urrent
Community services 1,444,285 $54,727 149,561
Total expenditures 1,444,255 554,727 149,561
I~det change in fund balance $ (257,591) (147,469} ~ 154,122 Fund balance -July 1 271,401
Fund balance -June 30 163,932
124
DRAFT 150 of 301
CITY +©F ~QLETA
N(~RTIVIAJC.~R Gt~VER.NEI~ITAL FUND
BUELLTC~~~+T LIBRARY SPECIAL RE~E~iIJE FUND
SCHEDULE t~F REVE~iI.TES, E~~I'ENDITURES, AND

CHANCES IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2422
REVENUES:

Intergovernmental
Charges for services
Fines &forfeitures
Use of money and property
Donations
Total revenues
EXPENDITURES:

Current:

Community services
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance -June 34
Variance
Final Positive
Budget Actual {Negative)
193,729 $ 193,729 $ -
- 743 743
754 292 (458)
- 344 344
- 1,255 1,255
194,479 196,363 1,884
218,473 197,329 21,144
218,473 197,329 21,144
$ X23,994) (966) $ 23,428
44,442
~ 43,436
125
DRAFT 151 of 301
CITY OF +G~3LETA
I~O~VIAJC)I~ G(~~ERNEI'~TAL FL.TND
COLT~ITY PER. CAPITA BUELLT{~N LI~R..ARY SPECIAL R.EVEI~~[JE FU1~I~ SCI~EDULE OF REVEI~~IJES, EPEiITURES, ANNIE► CI~íANGES I1~T F~.T1~I~ BALANCE - BLTIJET ANI? ACT[.TAL For the Fiscal Year Ended June 30, 2022
Variance
Final Positive
Budget Actual {Negative)
REVENUES:

Interg©vernmental ~ 156,044 $ 156,044 $ -
LJse of money and property - { 1, l ~ 1) { 1,101)
Total revenues 156,044 154,943 { 1,101)
EXPENDITURES:

Current:

Community services 153,860 96,300 57,560
Total expenditures 153,860 96,300 57,560
met change in fund balance ~ 2,184 58,643 ~ 56,459
Fund balance -July 1 91,360
Fund balance -June 30 $ 150,{}03
l~~
DRAFT 152 of 301
+CITY QF' ~tJLETA
%t~}I~1~.AJ~~Z +~C~VER~~~1E1~TAL FL;1~~D
SC)LVA~G LIBRA.RY SPECIAL REVEI~~UE FL1I~D
~C~~DULE +C)F ~VEI~~IJES, E~PEI~II)IT[. TT:ES, A,.I`~
C~íA~TC~rE ~ II~ FUND BALAT'~CE - BUD~ET A1~ID ACTLJAL
F©r the Fiscal Year Fnded June 3fl, 2~22
VaClance
Final Positive
Budget Actual {Negative)
$ 184,855 $ 184,855 $ -
- 5,961 5,961
1,004 559 {441}
- 646 646
20,O4fl 10,122 (9,878}
205,855 242,103 (3,752)
230,386 216,680 13,706
230,386 216,684 13,746
$ {24,531) (14,577) $ 9,954
36,394
~ 21,817
REVEN~TES:

Intergovernmental
Charges for services
Fines c~ forfeitures
Use of money and property
Donations
Total revenues
EXPENDITURES:

Current:

Community services
Total expenditures
I~1et change in fund balance
Fund balance -July 1
Fund balance -June 30
127
DRAFT 153 of 301
CITY OF ~t~►LETA
O1~TIVIAJCiR~ C~C~~EI~:i~MEI'~TTAL FUI~~
COLTI~ITY PEI CAPITA SC~LVA%~~ LIBI~AI~ SPECIAL REVENUE F~;1I`~D SCHEDULE t~F ~:.EVE~~JES, EPEI~TDITLTI~ES, ANI~
CHAI`~GES It FI.jRTI~ BALAT~TCE - BUI~C~ET ARTI~ ACTUAL For the Fiscal wear Ended June 30, 2{}22
Variance
Final Positive
Budget Actual (1~legative)
REVENUES:

Intergovernmental ~ 179,954 $ 179,954 -
Use of money and property - {98fl} {98~)
Total revenues 179,954 178,974 í98A
EXPEI~I3ITURES:

Current:

Conununity services 172,842 124,493 48,349
Total expenditures 172,842 124,493 48,349
Net change in fund balance ~ 7,112 54,481 $ 47,3b9
Fund balance -July 1 77,499
Fund balance -June 30 $ 131,984
128
DRAFT 154 of 301
NDNMAJC~I~ ~OVE;~~EI~TAL FUND
11~IISCELLANEC~US GRANTS LIBR.AR~ SPECIAL REVEI~~IJE FITND SCI~EDULE OF F;E~ENLTES, EXPENDITURES, AND

GANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2022
REVENUES:

Intergovernmental
Use of money and property
Total revenues
E ~j~JNd VR~s
Current:

C4mmunit~ SerV1CeS
Total expenditures
Net change in fund balance
Fund balance -Julyi
Fund balance -June 30
Variance
Final Positive
Budget Actual {Negative)
$ 17,úU0 15,5Oú {1,5úU)
- {550} {SSU)
i7,úúU 14,950 {2,050)
61,7Úb 19,354 42,352
61,706 19,354 42,352
$ {44,7úb) {4,404) $ 4Ú,3O2
45,25b
4ú,$S2
129
DRAFT 155 of 301
CITE ~F ~©EFTA
1~T4NMAJGIZ G+C)VERNIVIEI~I~TAL FUND
PUBLIC ADINISTRATIQN FACILITIES DIF SPECIAL R~EVE%T[_TE FLTNI) SCI-íEDULE +~F F:E~EI~~iJES, EXPENDITURES, ANI~

CFIAGES IN FUND BALANCE -BUDGET AND ACTUAL
Far the Fiscal wear Ended June 31~, 2022
REVENUES:

Use of money and properly
Developer fees
Total revenues
E~PENI)ITURE~:

Capital outlay
Total expenditures
Net change in fund balance
Fund balance -July 1
Fund balance {deficit) -June 30
Variance
Final Positive
~itl{~~eÍ Actual (Negative)
~ - ~ 2,311 $ 2,311
226,300 - (226,300}
226,300 2,311 (223,989)
261,146 259,41 ~ 1,728
261,146 259,418 1,728
$ {34,846) (257,107) $ (222,261)
255,468
~ {1,639)
130
DRAFT 156 of 301
~TATI~TIC.~.L SECTIt~N
DRAFT 157 of 301
t~3T~T~►.3Til..~~ ►,7~G~ 1 ~i.i~
This part of the City of Goleta's comprehensive annual financial report presents detailed information as a context far understanding what the information in the financial statements, footnotes, and required supplementary information says about the City's overall financial health.

Contents Pages
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial 132-13~ performance and well-being have changed aver time.

Revenue Capacity
These schedules contain information to help assess the City's mast significant local revenue 140-147 source, the property tax and transit occupancy tax.

Debt Capacity
These schedules ca~~tain info~n~.tial~ to help the ~~e~.de~~ assess the affo~~da'c~ility of tl~e City's 14-1 ~ 1 current levels of outstanding debt and the City°s ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the 152-153 environment within which the Clty'S financial activities tape place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the 154-157 information in the City's financial report relates to the services the Clay provides and the activities it performs.

Sources: Unless otherwise noted, the lnformatlon In these Schedules Is derived Pram the annual comprehensive financial reports far the relevant year.
131
DRAFT 158 of 301

CITY OFGOLETA

NET POSITION BY COIVIPONENT
Last Ten Fiscal Years
{accrual basis of accounting}
Fiscal Year Ended June 30,
2013 2014 2015
Governmental activities:

Net investment in capital assets
Restricted
L.Tnrestricted
Total goverrunental activities net position
$ 163,927,809 ~ 172,564,805
13,017,605 18,154,31 ~
14,419,5fó 10,9ó3,974
$ 191,364,980 $ 201,ó83,098
183,8ó3,f22 181,519,215
17,955,771 28,429,446
11,095,734 l5,4ó5,702
~ 212,915,127 ~ 225,414,363
- 132 -
DRAFT 159 of 301
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
$ 180,871,756 $ 189,886,349 $ 191,612,268 $ 202,170,314 ~ 196,120,737 ~ 195,800,347 36,891,364 34,623,415 34,490,037 35,223,059 40,085,550 42,881,716 19,440,126 6,765,954 13,891,718 6,697,065 21,525,728 30,575,470 $ 237,203,246 ~ 231,275,718 $ 239,994,023 ~ 244,090,438 $ 257,732,015 $ 269,257,533 -133-
DRAFT 160 of 301
CITY GF GC~►LETA
CHAI~GES I1~ ~1ET POSITIQl`~
Last Ten Fiscal Years
(accrual basis of accounting}
Fiscal Year Ended June 30,
Primary Government -Governmental Activities 2013 2014 2015 2016 X ~YY YiY~~Y~
Expenses
General government ~ 5,216,451 $ 5,071,322 $ 5,563,514 5,910,221 Public safety ?,193,436 7,386,485 7,598,735 7,611,834
Public worl~s 14,292,509 lO,?04,905 8,?84,684 9,350,254 Community development 33,365 34,194 297,547 44,509
Community services 3,443,203 4,385,593 4,270,831 4,363,053 Interest and other charges 260 - - -
Total expenses 30,1?9,224 2?,582,499 2b,515,311 27,279,871 Program revenues:

Charges for services:

General government 43,159 43,744 48,740 32,874
Public safety 1 ? 1,132 17ó,26O 197,928 156,125
Public words 616,780 1,194,632 1,241,016 1,258,930
Community development 1,581,191 2,040,086 1,664,052 2,156,101 Community services 13,554 15,56? 17,665 17,799
Qperating grants and contrlbutlons:

General government - - - -
Public safety 161,294 142,óO5 106,258 114,671
Public words 2,114,326 2,564,451 2,342,000 2,117,379
Community development - - - -
C©mmunity ServlCes - - - -
Capital grants and contrlbutlons:

Public safety 44,201 53,324 34,781 243,b48
Public worl~s 7,4?4,170 1O,ó88,258 11,996,936 10,94?,335 Community development 1,103,734 21,975 374,039 3?3,338
Community services 21,964 44,096 25,744 156,033
Total program revenues 13,345,505 1b,984,998 18,049,159 17,5?4,233 I~]et revenues {expenses) (16,833,719} {10,597,501} (8,466,152} (9,?05,638} General revenues and other changes
in net position:

Taxes:

Sales taxes 5,776,818 6,812,304 6,329,870 6,216,442
Property taxes, levied for general purpose 5,026,723 5,163,756 5,266,101 5,719,552 Transient occupancy tax 5,604,278 6,976,954 7,807,830 8,175,456 Franchise taxes 1,152,381 1,223,935 1,272,418 1,241,017 tither taxes 55?,042 247,795 274,256 292,277
Use of money and property 132,736 112,050 90,723 126,310 +Other 8?2,273 378,825 341,687 433,820
Transfer in from City of Santa Barbara - - - -
Total general revenues 19,122,251 20,915,619 21,382,885 22,204,874 Changes in net position $ 2,28$,532 $ 10,318,118 $ 12,916,733 $ 12,499,236 - 134 -
DRAFT 161 of 301
Fiscal dear Ended June 30,
2017 2418 201 2020 2x21 2x22
$ 6,755,208 ~ 12,Só2,598 $ ó,819,9S4 $ ó,574,20ó ~ b,SS2,687 ~ 7,ó37,3l1 7,741,361 8,582,868 8,O4ó,894 7,b46,327 7,2ó2,2S5 8,b95,21ó 10,965,391 18,234,912 12,815,994 12,253,012 12,255,541 1ó,S20,3ó4 49,858 425,086 7Só,848 48b,ó31 4ó3,ó91 1,014,887
6,359,917 5,273,153 6,l48,07ó 7,854,597 8,394,ó5l 7,{}51,170 - - - - 227,333 2S8,ó10
31,871,735 45,078,617 34,587,762 34,814,773 3S,15ó,118 41,177,554 18,929 464 18,431 73,238 75,473 98,700
129,051 125,000 - - - -
1,338,942 T37,ó73 718,392 925,703 959,250 1,467,664
2,234,1bó 1,268,821 1,O23,24ó 1,239,522 1,020,686 1,103,385 18,419 - 5,433 7,121 1,250 ó,7O4
- - l5,33ó óO,538 44,375 3,024,4óS
424,256 191,248 150,690 - ó,348 -
3,289,ó99 937,123 ó4O,432 743,838 927,972 762,120
- - - 50,543 273,575 -
- - 1,037,379 1,883,517 1,555,802 l,581,ó33
71,579 688,348 524,047 264,511 489,217 714,138
13,029,843 6,045,265 4,184,252 2,412,918 10,437,978 4,352,804 21,517 ó34,ó94 l,457,70ó 48ó,5ó9 161,376 298,779
59,491 130,502 995,745 44,428 346,613 15,869
20,635,892 10,759,138 14,371,409 8,188,046 16,299,915 13,422,261 {11,235,843) {34,319,479) {24,216,753) {2ó,62ó,727) {18,856,243) {27,755,293) 6,491,121 7,976,472 8,629,829 8,359,879 9,391,156 l4,733,24ó 6,051,805 6,504,431 ó,9S4,616 7,323,010 7,578,502 8,299,838 8,615,207 10,117,460 11,Só4,512 9,197,440 9,239,079 14,341,129 1,202,162 1,325,238 1,409,104 l,431,ó93 1,478,848 1,577,968 24ó,87ó 1,253,424 l,71ó,932 l,892,ó58 4,054,191 3,437,524 148,899 747,399 1,264,583 1,53l,óó8 310,821 {314,219)
781,108 851,175 614,827 98ó,T94 445,183 1,205,325
- - 341,?49 -
23,537,178 28,775,599 32,492,152 34,723,142 32,497,784 39,284,811 $ 12,301,335 $ {5,543,884) $ 8,275,399 $ 4,09ó,4l5 ~ 13,ó41,S77 $ 11,525,518 - 135 -
DRAFT 162 of 301
CITY t~F ~C}LETA
FL; ► BALAi~CES CAF G~J~TEI~II~~ETAL FL;~~TDS
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year Ended June 30,
general fund:

Ionspendable
Committed
ASslgned
Unassigned
Total general fund
All ether governmental funds:
~onspendable
Restricted
Assigned
Unassigned
Total all other governmental funds
~ 536,424 ~ 460,1~~ ~ 410,865 ~ 82,990
12,690,889 12,862,911 12,746,021 15,417,875
516,358 417,369 977,903
~ 15,510,476 ~ 13,876,965 ~ 13,989,786 $ 18,317,380
.....~...
~ 185 ~ 167 $ 182 ~ 100,074
12,354,267 15,788,665 17,955,589 28,329,372
{645,505) {2,359,311 } {330,121) (729,923}
$ 11,708,947 ~ 13,429,521 ~ 17,625,650 $ Z7,699,523
Vote: +~ASF3 54 vvas implemented in 2011, prior years have no comparable data. - 136 -
DRAFT 163 of 301
Fiscal wear Ended June 30,
2417 2018 2019 2424 2021 2422
$ 135,766 $ 50,197 $ 139,944 $ 74,711 ~ 25,674 $ 26,176 14,447,924 14,717,463 14,468,732 11,087,037 12,617,411 12,753,584 6,356,424 4,448,640 5,351,819 3,269,986 2,517,342 7,006,229 938,971 4,286,175 7,466,128 2,846,216 17,632,671 19,482,955 $ 21,438,685 ~ 19,542,475 $ 23,426,619 ~ 17,277,954 ~ 32,792,658 ~ 39,268,944 ~ 112,704 ~ 13,045 ~ 34,455 ~ 948 $ - $ 1,545
36,792,174 34,623,474 33,573,116 35,222,459 40,485,550 39,873,176 { 1,084,155} {3,582,644) { 1,078,759} (2,397,434} (2,531,941) {2,621,492} ~ 35,824,719 ~ 31,453,511 $ 32,524,412 ~ 32,826,333 ~ 37,553,649 ~ 37,253,629 - 137 -
DRAFT 164 of 301

CITY DFGOLETA
CHANGES IN FUND BALANCES C}F G{~VEI~;NMENTAL FUNDS
Last Ten Fiscal Years
{modified accrual basis of accounting)
Fiscal Year Ended June 30,
2013 2014 2015 201b
Revenues:

Taxes
Intergovernmental
Charges for services
Licenses and permits
Fines and forfeitures
Use of money and property
Developer fees
Donations
tuner
Total revenues
Expenditures
Current:

General government
Public safety
public worl~cs
Community development
Community services
Pass-through to other agencies
Capital outlay
Debt service:

Principal
Interest
Total expenditures
Excess {deficiency) of ~•evenues
over {under) expenditures
Other financing sources {uses}:

Lease Proceeds
Transfer from City of Santa Barbara
Transfers in
Transfers out
Total other financing sources {uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
$ 19,542,847 ~ 22,339,191 ~ 22,925,753 $ 23,649,455
5,624,425 6,400,343 11,740,038 1,923,771
2,095,880 2,697,388 2,353,873 2,864,921
- - 4,756 2,436
171,132 176,260 197,928 156,125
301,651 288,061 279,670 346,146
3,466,434 3,918,215 3,904,960 1d,426,271
8~72,2~13 3"18,825 342,685 433,922
32,074,642 36,198,283 41,749,663 39,803,047
4,875,271 4,945,251 5,044,002 6,434,016
7,187,085 7,464,395 7,571,316 7,564,633
6,080,632 5,129,309 4,817,198 4,433,051
33,365 34,194 279,741 26,703
3,441,371 4,385,593 4,388,910 4,558,781
13,723,359 14,130,471 15,339,546 2,896,848
83,033 22,007
35,424,376 36,111,220 37,440,713 25,914,032
{3,349,734} 87,063 4,308,950 13,889,015
37,052 14,153,059 2,429,567 1,323,699
{37,052} { 14,153,059) {2,429,567) { 1,323,699}
{3,349,734) $ 87,063 $ 4,308,950 $ 13,889,015

0.38% 0.10% 0.00% 0.00%
- 138 -
DRAFT 165 of 301
Fiscal Dear Ended June 30,
2017 2018 2019 2020 2021 2022
$ 24,b31,ó21 $ 26,900,090 $ 29,929,836 $ 27,863,962 $ 31,247,854 $ 37,873,993 2,358,692 3,175,254 6,221,465 4,433,794 7,585,636 6,362,724 2,963,297 2,131,958 1,765,462 2,245,584 2,05+6,659 2,b76,453 16,713 276,935 345,157 340,718 374,896 515,712
129,051 157,573 211,003 170,392 119,026 169,201
414,124 747,399 1,264,583 1,531,ób8 310,821 {314,219}
1l,877,ó52 6,269,163 2,230,638 1,149,944 6,852,979 1,342,764 - - 272,945 93,482 69,883 73,325
781,1ïú ó93,ó02 399,824 816,402 445,183 1,036,124
43,172,260 40,351,974 42,640,913 38,645,946 49,062,937 49,736,077 6,703,041 6,172,071 7,841,267 6,995,184 6,873,224 8,920,674 7,713,313 8,545,945 8,031,031 7,608,120 7,235,324 8,668,285 5,778,897 12,361,238 7,187,008 6,448,010 6,357,423 11,352,463 32,271 405,516 747,001 473,415 455,937 1,014,887
6,482,998 4,846,289 5,865,827 7,425,212 7,993,126 7,822,195 4,706,787 14,ó39,l00 7,250,004 16,208,232 9,788,546 5,297,511 - - - - - 222,740
- - - - 117,333 261,060
31,417,307 46,970,159 36,922,138 45,158,173 38,820,913 43,559,815 11,754,953 {6,618,185} 5,718,775 {6,512,227} 10,242,024 ó,176,2b2 - - - - 10,000,000 -
- - 341,749 - - -
67,038 19,919 23,182 29,98 33,316 124,704
{67,038) { 19,919} {23,182} {29,983} {33,316} (124,704} - - 341,749 - 10,000,000 -
$ 11,754,953 $ {6,618,185} $ 6,060,524 $ {ó,512,227} $ 20,242,024 $ ó,176,2ó2

0.00% 0.00% 0.00% 0.00% 0.40% 1.26%
- 139 -
DRAFT 166 of 301
ASSESSED VALUE AND ACTUAL VALUE c~F TAxABLE P~DPER.TY
Last Ten Fiscal Years
City
Fiscal Year Secured Taxable
Ended and Less: Assessed
June 30, Unsecured EXem tlonS
- ~,~ ...~
Value
2013 5,321,655,710 $ 228,041,081 $ 5,093,614,{29
2014 5,476,016,337 250,788,107 5,225,228,230
2015 5,635,342,590 215,724,563 5,419,618,027
2016 6,059,379,285 218,841,848 5,870,537,437
2017 6,399,862,393 241,333,422 6,158,528,971
2018 6,540,459,088 310,162,712 6,530,326,376
2019 7,443,733,341 343,551,969 7,100,181,372
2020 7,765,046,350 326,660,076 7,435,386,274
2021 8,248,711,546 357,716,937 7,890,994,609
2022 8,495,241,471 329,120,264 8,166,121,207
l~Tote :

In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00°/© fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00°l° fixed amount, property owners are charged taxes as a percentage of assessed property values of the Debt Service payment of Goleta Unified School District, Santa Barbara ~-ligh School District, and Santa Barbara City College. {A} Effective February 1, 2012, the Redevelopement Agency was dissolved. See 1`~ote 16.

Source: Santa Barbara County Auditor-Controller
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DRAFT 167 of 301
Redevelo~n~ent Agency
Secured Taxable Total
and Less: Assessed Direct Tax
Unsecured Exem~,s value {A} Rate {A}
1,18?,6$S,Ú66 ~ 129,b? 1,??2 ~ 1,05 ~,~ 13,294 1.Ú38b8%° 1,221,22ó,2S0 153,699,413 1,06?,526,83? 1.04228°I°
1,232,513,103 152,?51,8?? 1,0?~,?6l,22ó 1.04159%
1,2?8,194,953 161,350,968 1, I l ó,843,98S 1.03?ó8%
1,331,?8?,1 ?5 1 b?, l 8ó,2O1 1,164,600,9?4 1.033?3%
1,436,831,839 220,44?,902 l,21ó,383,93? 1.043?$%
1,536,94?,?ó3 231,42?,? 14 1,305,520,049 1.04055%
1,611,933,1?2 2l?,3?6,249 1,394,556,923 1.04010%
1,?63,413,4{ 1 228,144,193 1,535,269,268 1.03921%
1,831,054,65? 222,258,?ó9 1,608,?95,888 1.05?45%
-141-
DRAFT 168 of 301

CITY OFGOLETA
DIRECT AND O~TERLAPPING GOVER~~vIENTS PROPERTY TAX RATES Last Ten Fiscal Years
{rate per $140 of taxable value)
Fiscal Year Ended June 30,
2413 2414 2{} 15 2016

1.04000 1.40400 1.44400 1.00444

4.{1127 4.41383 4.01314 0.41248

4.4485(} 4.44854 0.04854 fl.40854

4.41391 4.41995 0.41995 O.fl l X74

1.038b8 1.04228 1.44159 1.03768

0.44903 4.44903 0.04903 0.04903

0.12288 0.45144 4.05143 0.05494
City Direct Rates:

City of Goleta Basic Levy { 1 }
Overlapping Rates {2}:

Goleta LTnif ed School District
Santa Barbara City College
Santa Barbara High School District
Rates
City's Share of 1 %Levy Per Prop 13 {3 )
Redevelopment Rate {4)
Total Direct Rate {5 )
Dotes:
{ 1 } In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.40% fixed amount. This 1.00°/® is shared by all taxing agencies for which the subject property resides within. In addition to the 1.44% fixed amount, property owners are charged taxes as a percentage of assessed property values far the payment of any voter approved bonds.
{2) Overlapping rates are thane of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
{3) City's Share of 1%Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. ERAF general fund tax shifts may not be included in tax ratio figures. {4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate{s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX 1 26 eliminated Redevelopment for the State of California for the fiscal year 2412-13 and years thereafter.
{5} Total Direct Rate is the weighted average of all individual direct rate applied to by the government preparing the statistical section information and excludes revenue derived from aircraft. Beginning in fiscal year 2413-14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during fiscal year 2412-13 . For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Sources: Santa Barbara Auditor-Controller
City of Goleta, Finance Department
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DRAFT 169 of 301
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DRAFT 170 of 301

CITY OF GC)LETA
PRINCIPAL PROPERTY T'Ax PAYERS
Current Fiscal Year and Nine Fiscal Years Ago
2022
ereent o
Total City
Taxable Taxable
Assessed Assessed
Taxpayer Primary Use Value Value
Ruby SB Hotel LLC Commercial 389,332,231 4.77%
Goleta Hollister Apartments LLC Residential 128,231,923 1.57% SP l~faravilla LLC Institutional 126,260,205 1.55%
L~eckerS Labrlllo Ll_,í.: LorniTlerclal 106,256,202 L30% Camino Real II Limited Liability Company Commercial 102,187,602 1.25% FLIR Commercial Vision Systems Inc Commercial 88,471,875 1.08%° Raytheon Company Commercial 81,631,299 1.00%
Willow Springs LP Residential 75,181,100 0.92°/©
SumidaFamily LP Residential 64,752,186 0.79°/©
Goleta HHG Hotel Development LP Commercial 51,110,487 0.63°/© "1'op `1'en "Total .1,213,415,11 U 14.6"/°
2013
ercent o
Total C1ty
Taxable Taxable
Assessed Assessed
Taxpayer Primary se Value Value
SP l~aravilla, LLC Industrial 109,747,967 2.15°/©
BRS Investment Properties LLC Commercial 105,000,000 2.06°,/° Raytheon Company Commercial 90,377,111 1.77%
Camino Real II Limited Liability Company Commercial 87,111,864 1.71 °/© Los Cameros Business Park LP Industrial 50,400,000 0.98% SumidaFamily Limited Partnership Residential 46,538,463 0.91% Nassau Land Company LP Commercial 45,233,176 0.88%
Willow Springs LP Residential 41,286,143 0.81 °/©
Rockbridge Investments LP Industrial 39,545,389 0.77%
Citrix Systems INC Commercial 39,249,470 0.77°1°
"1'op "1'en `Total 654,089,583 12.81/°
Note: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.

Source: Santa Barbara County Assessor
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DRAFT 171 of 301
Collections in Total Collections to Date { 1 ~
Subsequent Percent
Years Amount of Levy
- 2,260,137 100.00°/©
- 2,311,154 100.00%
- 2,538,700 100.00%
- 2,752,953 100.00%
- 2,904,565 100.00°/©
- 3,093,044 100.00%
- 3,375,135 100.00°/fl
3,545,819 100.00%
3,790,194 100.00°/©
3,922,347 100.00%

CITY OF GOLETA

PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal Taxes Levied
Year Ended for the
June 30, Fiscal Year
2013 ~ 2,260,137
2014 2,311,154
2015 2,538,700
2016 2,752,953
2017 2,904,565
2018 3,093,044
2019 3,375,135
2020 3,545,819
2021 3,790,194
2022 3,922,347
Collected within the
Fiscal Year of Lew
Percent
Amount of Levy
$ 2,260,137 100.00°/© $
2,311,154 100.00°/©
2,538,700 100.00°/©
2,752,953 100.00%
2,904,565 100.00%
3,093,044 100.00%
3,375,135 100.00%
3,545,819 100.00°/©
3,790,194 100.00°/©
3,922,347 100.00°l°
{1)
The City participates in the Teeter Plan. The Teeter Plan is an alternative method of apportloning property tax money. Cities p~.rticipatin~ in the Plan received 95% of the property taxes in advance from the County and the remaining 5% after the County reconciles the Cities' balance on June 30.

Note: The amounts above include the City of Goleta secured property taxes only.

Source: City of Goleta, Finance Department
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DRAFT 172 of 301

1..~ 1 ~ DF ~~LETA
~k.EVEUE AID RATES flF TRAI~TSIET C)CCUPAI~T~Y TAX
Last Ten Fiscal Years
Transient
F1SCal C)Ccupancy Taxes Transient
Year Ended for the Qccupancy Tax
June 30, Fiscal Year Rate
2fl 13 t t ~ 5,604,278 12%
2014 6,976,954 12%
2fl15 7,807,83fl 12%
2016 8,175,456 12%
L®# I 9 ~ J,~ ! ~ L~J o
2018 1 fl,117,46fl 12%
2fl ~ ~ ~ ~,~~~,~ 1 ~ 12%
2fl2fl 1, ~ J / ,`fii V ~ L~l o
2021 9,239,479 12%
2022 14,341,129 12%
i~Totes:
(1 ~ From July 2412 through December 2012, the tax rate vvas 10% and then Increased to 12% on January 1, 2013
Source: pity of Goleta, Finance Department
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DRAFT 173 of 301
CITY aF G{)LETA
PRINCIPAL TRAI~iSIEi~T QCCIJPANY TAB PACERS
Current Fiscal dear and Dine Fiscal dears Ago
2022
The Goodland
Goleta Hampton Inn
Hilton Garden Inn
Courty~.rd by Marriott
Motel 6
Pacifica Suites
Residence Inn by Marriott
The Ritz-Carlton Bacara
South Coast Inn {Best Western)
Super 8 Motel
2013
Bacara Resort Spa
Courtyard by Marriott
Hampton Inn
Holiday Inn
Motel b
Pacifica Suites
South Coast Inn
Super 8 Motel
Note
Top transient occupant' tax payers are listed in alphabetical order.

Source: City of Goleta, Finance Department
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DRAFT 174 of 301
CITA~~GOLETA
RATIGS C)F GIJTSTA~~DII~~TG DEBT BY TAPE
Last Ten Fiscal Years
Fiscal Year Certificates Total Percentage Debt
Ended of Capital Loans Governmental of Personal per
June 30, Participation Leases Payable Activities Income Capita 2013 $ - 22,007 $ - 22,OOi 0.00°l0 ~ 1
2014 - - - - 0.00°l0 -
2015 - - - - 0.00°lfl -
201 f - - - - 0.00°l~ -
2017 - - - - 0.00°10 -
2011 - - - - 0.00°l0 -
2a ~ ~ - - - - 0.00©l0 -
2020 - - - - 0.00©~© -
2021 - 10,000,000 - 10,000,000 0.~0°l0 30~
2022 - 9,777,Zó0 - 9,777,20 0.~2% 301
mate: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: City ofGaleta,Finance Department
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DRAFT 175 of 301
Total
Outstanding Debt
6/30/2022 --
~i 53,435,000
118,225,000
15,075,000
70,224,791
27,125,000
9,777,260
f i 1 i 1

CITY OFGOLETA
DIRECT AND OVERLAPPING GOVER1l~~ENTAL ACTIVITIES DEBT
June 30, X122
2021-2022 Assessed Valuations: 8,16b,121,207
Direct and ~verla~pin~ Tai and Assessment Debt
Santa Barbara Community College District
Santa Barbara Unified School District
Goleta Union School District
Santa Barbara High School District
Total Direct and Overlapping Tax and Assess_rr~cnt Debt Ove~l~iGeneral Fund Debt
Santa Barbara County General Fund Obligations
City of Goleta General Fund Obligation
Total gross Overlapping General Fund Debt
Less: Santa Barbara County supported obligations
Total Net Overlapping General Fund Debt
Overlap Tax Increment Debt ,SuccessorAnca}:

Total I}irect I~► ebt
Total Gross Overlapping Debt
Total Net Overlapping Debt
Gross Combined Total Debt
Net Combined Total Debt
Ratios to 2020-2021 Assessed Valuations:

Direct Debt
Total Direct and Overlapping Tax and Assessment Debt
Gross Combined Total Debt
Net Combined Total Debt
Percentage
Applicable (1 ~

12.785%

14.527°/a

52.760%

14.527%

8.613%
100.000%
1 OO.000%

0.80°/©

0.80°/©
City`s Share of
Overlapping Debt
6/30/2022__
$ 6,831,665
17,174,546
7,953,570
10,201,555
42,161,33b
2,336,27b
9,777,2óO
12,1 l3,53ó
l57,ó18
11,955,918
11,025,000
9,777,260
55,522,612
55,364,994
~, . . ,;
. ~ j
Ratios to Redevelopment Successor A~ency Incremental Valuation 1,123,294,115 }:

Total Overlapping Tax Increment Debt 0.98%
Notes:
(1 }The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2} Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Source: County of Santa Barbara
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DRAFT 176 of 301
CITY t~F G4LETA
CC~IVIPIJTATIC~I~ C)F LEC7AL DEBT I~~ARGI
Last Ten Fiscal Years
Fiscal Year Ended June 30,
2013 2014 2015 2016
Assessed valuation 5,321,655,71 ~ 5,476,016,337 5,635,342,590 6,089,379,285 Conversion percentage 25°,/° 25°/© 25% 25%
Adjusted assessed valuation 1,330,413,928 1,369,004,084 1,408,835,648 1,522,344,821 Debt limit percentage 15% 15% 15°/© 15°/©
Debt limit 199,562,089 205,350,613 211,325,347 228,351,723 Total net debt applicable to limltat~on - - - _
Legal debt margin 199,562,089 205,350,613 211,325,347 228,351,723 Total debt applicable to the limit
aS a percentage of debt limit 0.0°/fl 0.0% 0.0% 0.0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

Dovvever, this provision was enacted when assessed valuation was based upon 25% of marl~et value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of marl~et value (as of the most recent change in ownership for that parcel}. The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located with the State.

Source: City of Goleta, Finance Department
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DRAFT 177 of 301
Fiscal Year Ended June 30,
2017 2018 2019 2020 2021 2022
~ 6,399,862,393 ~ 6,840,494,388 ~ 7,443,765,341 $ 7,765,120,920 $ 8,248,711,546 $ 8,495,241,471 25°/© 25% 25% 25°/© 25% 25°/©
1,599,965,598 1,710,123,597 1,860,941,335 1,941,280,230 2,062,177,887 2,123,$10,368 15°/© 15% 15% 15°/© 15% 15%
239,994,840 256,518,540 279,141,200 291,192,035 309,326,683 318,571,555 $ 239,994,840 ~ 256,518,540 ~ 279,141,200 $ 291,192,035 $ 309,326,683 ~ 318,571,555

4...1~~ GF V ~L~ 1 ~
I~EMGGRAPI-~IC ~~ ~4..V1`Vt.,#~~4. ~~~~~~ 1 ~i..~~3
Last ~en Fiscal Years
Santa Barbara City of Goleta
Fiscal Year County Personal Per Capita Unemployment
Ended Population (1 } Population (1 } Income (2} Income (2} Rate dune 30, City of Goleta (ln thousands} (In thousands} (ln thousands} (~} 2013 29,962 429 1,015,352 34 2.90%
2014 30,202 433 1,022,368 33.9 2.60%
2015 30,298 438 994,5(}2 32.8 3.60%
2016 31,235 447 1,015,220 32.5 3.10%
2017 31,760 451 1,085,697 34.2 3.00%
2018 31,949 453 1,110,756 34.8 3.60%
2019 32,759 447 1,168,689 35,7 2.40%
2020 32,223 452 1,217,385 37.8 2.30%
2021 32,339 441 1,250,318 38.7 6.30%
2022 32,529 443 1,351,637 41.6 3.90®/~
Sources:
(1 }California Department of Finance, FIDL Demographics & Economic Statstïcs (2} U.S. Department of Commerce, Bureau of Economic Analysis (Santa Barbara-Santa Maria-Goleta) (3}California Employment Development Deparíment
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CITY ©F GC3LETA
PRINCIPAL EMPL©YERS
Current Fiscal Year and Nine Fiscal Years Ago
2022 2013
Employment °/© Employment %
Number of to Total Number of to Total
Employer Employees Population Employer Employees Population University of California, Santa Barbara {1} 10,973 33.73% Raytheon 1,3(}{1 4.34% Raytheon 1,400 4.30% SanSum Ciln1C 1,300 4.34%
SanSUm 822 2.53% Bacara Resort 62© 2.07%
Goleta Cottage Hospital 813 2.50% Citríx Online 600 2.00% «_ ~ ~~'ti1 658 ~ n~n~ G.v.c %° S TT._ ~ 3_ _ _4 Go~eta ~niÍ"ied Scnvui District 565 4 nnni t .8~ %° AppFolio 647 1.99% Y~ardi Systems 505 1.69%
Log Me In 600 1.84% FLIR 375 1.25%
Tecolote Research 570 1.75% Karl Storz Imaging 352 1.17% Goleta Union School District 549 1.69% Goleta Cottage Hospital 347 1.16% Yardi Systems 535 1.64% Allergan {Inamed) 299 1.00%
The Ritz-Carlton 500 1.54% Medtronic 279 0.93%
Deckers Outdoors 500 1.54°/© Network Hardware Resale 271 0.90% FLIR Commercial Vision Systems 490 1.51% Costco 258 0.86% Karl Storz Imaging 350 1.08% Jordano's 257 0.86%
Curvature 315 0.97°/© Mentor Corp 218 0.73°/©
Marburg Industries 307 0.94% Inogen 200 0.67%
Jordano's 250 0.77% The Home Depot 178 0.59%
Costco 233 0.72%
Target 209 O.b4%
Inogen 208 0.64°/©
{ 1 }University of California, Santa Barbara is outside of Goleta city limits, but is within close proximity.

Employment data is intended for use as a general guide only. The City of Goleta does not warrant the accuracy of this data.

Inquiries should be directed to the respective employer.

Source: City of Goleta
- 153 -
DRAFT 180 of 301

CITY OFGOLETA

FULL-TIDE AND PART-TIIVIE CITY EMPLOYEES
BY FLTN~TIO
Last Ten Fiscal dears
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government 8.40 8.40 14.55 16.30 16.30 16.40 15.65 15.65 17.65 16.90 General Services - - - - - - - - - 3.00
Library Department { 1 } - - - - - 9.3 8 9.3 8 15.3 8 15.38 16.13 Administrative Services {2} 4.80 4.80 - - - - - - - -
Finance 1>epartl~~ent 4.00 4.00 4.45 6.00 6.00 6.00 7.00 7.00 7.00 10.00 Planning and
Environmental Services 11.50 11.50 13.80 14.80 15.80 15.00 15.00 15.50 17.50 18.50 Neighborhood Services
and Public Safety 4.00 4.00 5.00 4.00 5.00 5.00 5.00 6.00 b.00 6.50 Public Works 1 b.00 16.00 17.90 22.90 22.90 21.90 22.90 25.90 25.90 29.00 Total 48.70 48.74 55.70 64.00 66.00 73.b8 74.93 85.43 89.43 100.03 { 1 } In fiscal year 2019-2020; the pity council approved the transition to assume management and operations of the Buellton and Solvang Libraries beginning on July 1, 2019. (2) Beginning in fiscal year 2014-2015; the Administrative Services has been combined with General Government Source: City of Goleta, Finance Department
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DRAFT 181 of 301
~~~~ ~~ C~C~LETA
C~PERATINC ~~~~~~~~
~~ ~~~~
Last Ten Fiscal Years
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police (1 }
Calls for Service 19,277 19,531 20,077 23,150 25,025 23,894 22,690 21,802 21,933 20,281 22,359 Citations 982 1,121 1,586 1,444 1,033 871 834 1,073 550 858 1,564 Reports Taken 3,052 2,857 3,079 3,293 3,238 3,329 3,218 3,204 3,170 2,881 3,402 Fire (2):

Calls for Service 2,536 1,942 3,065 3,751 3,856 3,962 4,140 5,184 4,113 5,109 4,424 Public works X31:

Street resurfacing {miles) 10.4 18.5 5.8 12.9 - 6.7 6.8 3.3 1.8 1.2 3.8 Sources:
(1) Santa Barbara County Sheriff Department
{2) Santa Barbara County Fire department
(3} City of Goleta's Public Works Department
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DRAFT 182 of 301
CITY {JF GGLETA

CAPITAL ASSET STATISTICS
B~ FLINCTIGl~
Last Ten Fiscal ears
Fiscal dear Ended June 30,
Function 2013 2014 2015
Public Safety:

Police Stations { 1) - -
Fire Stations (2} 3 3
Community Development and Community Services:

Parks and {.open Space -Acreage 477 477
Cor~~.munity Center 1 1
Library 1 1
I~1Stor1C Stowe Mouse ~ ~
~►.mtrak Iestrooms 1 1
Elementary Schools {K - 6) 5 5
Middle Schools {~ - S} 1 1
I-Ilgh Schools (9 - 12} 1 1
Private Schools 4 4
Special Deeds Schools - -
Public w©rks:

Area of City {Square Miles) 8.0 8.0
Miles of Streets 174.0 174.0
dumber of Streetlights ~3) ~~ 103
dumber of Vehicles (City-wide} 14 14
Corporation hard 1 1
{ 1) City contracts with County of Santa Barbara for Law Enforcement Services. ~2) Fire Department related services are provided by the County Fire Department. {3) There are one thousand five hundred sixty seven 1,57) streetlights owned and maintained by Southern California Edison (SCE) In addition to those owned and maintained by the City. 3 477
1 1
1 1
5 1
1 4
~.0
174.0
103
20 1
Source: Various City of Goleta Departments
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DRAFT 183 of 301
~~u~~~o~~od~dJu~~3O'
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-l~7-
DRAFT 184 of 301
ATTACHMENT 2:

Government Auditing Standards Letter
DRAFT 185 of 301
DRAFT
186 of 301
DRAFT
187 of 301
DRAFT
188 of 301
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ATTACHMENT 3:

Statement of Auditing Standards Letter
DRAFT 190 of 301
DRAFT
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ATTACHMENT 4:

Independent Accountant’s Report on Gann Spending Limit
DRAFT 193 of 301
Moss, Levy & Hartzheim LLP
Certified Public Accountants

Independent Accountant’s Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets
The City Council of the
City of Goleta
We have performed the procedures enumerated below, which were agreed to by City of Goleta and the League of California Cities (as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines), solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution for the fiscal year ended June 30, 2022. City of Goleta’ management is responsible for the Appropriations Limit worksheet No. 6. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below, either for the purpose for which this report has been requested or for any other purpose.

The procedures performed and our findings were as follows:

1. We obtained the completed worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of these procedures.

2. For the accompanying Appropriations Limit worksheet No. 6, we added line A, last fiscal year’s limit, to line E, total adjustments, and compared the resulting amount to line F, this fiscal year’s limit.

Finding: No exceptions were noted as a result of these procedures.

3. We compared the current fiscal year information presented in the accompanying Appropriations Limit worksheet No. 6 to the other worksheets described in No. 1 above.

Finding: No exceptions were noted as a result of these procedures.

4. We compared the prior fiscal year appropriations limit presented in the accompanying Appropriations Limit worksheet No. 6 to the prior fiscal year appropriations limit adopted by the City Council during the prior fiscal year.

Finding: No exceptions were noted as a result of these procedures.

We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet No. 6. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base fiscal year, as defined by Article XIII-B of the California Constitution.
1 2400 Professional Parkway, Suite 205 Santa Maria, CA 93455 Tel 805.925.2579 Fax 805.925.2147 mlhcpas.com BEVERLY HILLS ∙ CULVER CITY ∙ SANTA MARIA
DRAFT 194 of 301
This report is intended solely for the information and use of the City Council and management of the City of Goleta and is not intended to be and should not be used by anyone other than these specified parties.

June 23, 2023
Santa Maria, California
2 DRAFT 195 of 301
AMOUNT
A. LAST FISCAL YEAR'S LIMIT $ 63,208,132
B. ADJUSTMENT FACTORS

1. Percent Growth In State per Capita Personal Income 1.0573%

2. Percent Growth in City Population 1.0071%
Total Adjustment Factor 1.0648%
C. ANNUAL ADJUSTMENT $ 4,096,318
D. OTHER ADJUSTMENTS:

Assumed Responsibility - Booking Fees
Property Tax Collections -
Sub-total -
E. TOTAL ADJUSTMENTS $ 4,096,318
F. CURRENT FISCAL YEAR LIMIT $ 67,304,450

CITY OF GOLETA
APPROPRIATIONS LIMIT WORKSHEET #6
FY 2021-2022
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ATTACHMENT 5:

Presentation
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Annual Comprehensive
Financial Report (ACFR) for
the Year Ended
June 30, 2022
September 19, 2023
City Council
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Presentation Outline
 ACFR Background ACFR Reporting Model ACFR Financial Highlights Certificates of Achievement Auditors Communication and Summary Results 2 DRAFT
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ACFR Background
 Annual audit required; contract with independent CPA firm  Annual financial report prepared in accordance with nationally recognized accounting principles and financial reporting standards
 Communicates and presents the financial condition and results of operations of the City as a whole and for individual funds
 “Comprehensive” because it includes information not required by financial reporting regulations
 Received an unmodified (“clean”) opinion for FY 2021/22 3 DRAFT
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ACFR Reporting Model
4 INTRODUCTORY SECTION

FINANCIAL SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)

AUDITED FINANCIAL STATEMENTS
Government‐Wide (Full Accrual)
Governmental Activities
(No Business‐Type Activities or Fiduciary Funds)
Fund
Governmental (Modified Accrual)
Fiduciary (Full Accrual)
(No Proprietary Funds)
Notes to the Financial Statements

REQUIRED SUPPLEMENTARY
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INFORMATION
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• Transmittal Letter
• Principal City Officials• Organizational Structure• Certificate of Achievement ACFR Reporting Model
5 The ACFR is organized in three major sections: Introductory, Financial and Statistical:

Introductory Section
• Independent Auditor’s Report
• Management’s Discussion and Analysis
• Government‐Wide and Fund Financial Statements• Notes to the Financial Statements• Required Supplementary Information • Combining Financial Statements and Schedules
• Selected financial trends and demographic information Statistical Section
Financial Section
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ACFR Financial Highlights
6 Financial Condition of the City at June 30, 2022:Net position totaled $269.25 million increase of approximately $11.5 million or 4.5% from the prior fiscal year of $257.73 million Overall total revenues from all sources equaled approximately $52.7 million increase of approximately $3.91 million or 8% from the $48.80 million in revenues the previous fiscal year. The City’s overall total expenditures were $41.18 million for the fiscal year increase of approximately $6.02 million or 17.1% when compared to last fiscal year General Fund Balance:

Fund Balance:

Non-spendable
Prepaid Items $ 26,176
Committed 12,753,580 Assigned 7,006,229 Unassigned 19,482,955 Total Fund Balance
DRAFT
$ 39,268,940
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ITEM III:
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Agenda Item X.x

CONSENT CALENDAR
Meeting Date: September 19, 2023
TO: Mayor and Councilmembers
FROM: Luke Rioux, Finance Director
CONTACT: Tony Gonzalez, Accounting Manager
SUBJECT: Fiscal Year 2022/23 Fourth Quarter (Year-End) Financial Review (Unaudited) RECOMMENDATION:

Adopt Resolution No. 23-__ entitled, “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.” BACKGROUND:

This report provides a financial update on the City’s preliminary actual revenue and expenditure activity through the fourth quarter (Q4) of the Fiscal Year (FY) 2022/23 Operating and Capital Improvement Program (CIP) Budget, which was adopted on June 15, 2021, as part of the two-year FY 2021/22 and FY 2022/23 budget plan and amended on June 21, 2022 (Mid-Cycle Budget). The information in this report is preliminary and provides a review of the revenue and expenditure activity from July 1 through June 30, 2023, and other relevant financial information. Additionally, this report recommends various adjustments to the adopted budget.

All numbers presented in this report are unaudited and may change upon the conclusion of the independent year-end audit that is currently underway. Staff expects modifications, if any, to be minor and therefore immaterial. The auditors and staff will present the City’s final audited FY 2022/23 Annual Comprehensive Financial Report (ACFR) at the completion of the audit and financial statement preparation targeted in December 2023.

DISCUSSION:

General Fund Budget Summary:

Table 1 summarizes the General Fund’s past three fiscal year activity, current FY 22/23 budget and year to date actuals.

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Table 1 - General Fund Budget Summary (Budget to Actual Comparison) Table 2 summarizes the General Fund’s original adopted budget, current budget, and recommended amendments.

Table 2 – General Fund Budget Summary and Amendments
The FY 2022/23 Adopted Budget was approved on June 21, 2022, with total expenditures at $44 million. The budget included adjusting revenues to capture higher sales tax and transient occupancy tax (TOT) receipts, though maintaining conservative estimates. The budget also included increasing expenditures related to staff levels to address ongoing workload capacity to help meet service levels and address critical needs, including incorporating the new General Services Department and one-time funding for critical capital projects.

The FY 2022/23 Current Budget total expenditures is now at $56.7 million, which includes carryover budget and new appropriations authorized by City Council for a total of $13.6 million (supported by the fund balance of the General Fund). Since July 1, 2022, the City Council has approved various new expenditure budget appropriations totaling approximately $12.7 million. Of the $12.7 million, $2.2 million was programmed for the Pavement Rehabilitation Project. Other new appropriations include additional funding needed for Sustainability Program outreach, landscape maintenance, Ellwood Beach Drive Draining Repair project, and appropriations approved during the Q1, Q2, and Q3 Financial Review, including adjustments for Building and Safety contract services and Airport Impact Analysis and Planning Document Review. In June, the City Council also authorized an additional appropriation of $1.8 million for emergency response services due to the 2023 winter storm events.

FY 2019/20 FY 2020/21 FY 2021/22 Prior Year
Year End
Actuals
Year End
Actuals
Year End
Actuals
Current
Budget
Year End
Actuals
%
Realized
Year End
% Chg
Revenues and Other Sources 28,687,014 $ $ 41,007,446 $ 37,623,480 $ 35,631,809 $ 38,328,234 107.6% 1.9% Operating Expenditures $ 24,819,277 $ 24,225,764 $ 30,895,556 $ 47,016,506 $ 36,808,717 78.3% 19.1% Capital Expenditures $ 10,681,884 $ 1,266,975 $ 251,642 $ 9,716,689 $ 1,130,063 11.6% 349.1% Total Expenditures $ 35,501,161 $ 25,492,739 $ 31,147,198 $ 56,733,194 $ 37,938,780 66.9% 21.8% Net Change to Fund Balance (6,814,147) $ $ 15,514,707 $ 6,476,282 $ (21,101,385) $ 389,454 Beginning Fund Balance $ 24,092,098 $ 17,277,951 $ 32,792,658 $ 39,268,940 $ 39,268,940 Ending Fund Balance $ 17,277,951 $ 32,792,658 $ 39,268,940 $ 18,167,555 $ 39,658,395 Category
FY 2022/23
Category
2022/23
Adopted
Budget
2022/23
Current
Budget
Recommended
Amendments
2022/23
Amended Budget
Revenues and Other Sources $ 35,631,809 36,041,100 $ - $ $ 35,631,809 Operating Expenditures $ 36,815,225 $ 47,016,506 $ - $ 47,016,506 Capital Expenditures $ 7,260,078 $ 9,716,689 $ (1,050,683) $ 8,666,006 Total Expenditures $ 44,075,303 $ 56,733,194 $ (1,050,683) $ 55,682,511 Net Change to Fund Balance $ (8,034,203) $ (21,101,385) $ 1,050,683 $ (20,050,702) Beginning Fund Balance $ 39,268,940 $ 39,268,940 $ 39,268,940 Ending Fund Balance $ 31,234,737 $ 18,167,555 $ 1,050,683 $ 19,218,238 DRAFT 206 of 301
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Attachment 1 provides the General Fund Statement of Revenues & Expenditures, which summarizes the major budget revisions by major revenue source and expenditure adjustments by departments.

General Fund – Recommended Amendments Summary:

Staff is recommending various year-end budget adjustments to CIP expenditures, due to projects being complete or needing cleanup. These adjustments are a total decrease of $1.05 million which is further discussed in detail below.

General Fund Revenue Analysis:

The tables presented in this section include budget-to-actual comparisons between the current fiscal year and compare the previous fiscal year quarter-to-date actuals.

Property tax, sales tax and transient occupancy tax are the City’s major tax revenues. They account for over 80% of total General Fund revenues. Table 3 summarizes fourth quarter budget-to-actual activity, which is followed by a brief discussion of the key revenue variances and where the City is trending.

Table 3 – General Fund FY 2022/23 Revenues through Q4 (June 30) Property Tax
Property tax is the second largest revenue source for the City as it accounts for 24.3% of total General Fund revenues and it remains the most stable. This category is composed of three payment types – (1) the “Traditional” Property Tax, which is received in large part during the months of December and April, (2) the Property Tax in Lieu of Motor Vehicle License Fees (MVLF), which is received in two payments during January and May, and (3) the monthly Documentary Transfer Tax revenue, which is derived from changes in ownership of real property and assessed value. The City shares half (50%) of its property tax allocation with the County of Santa Barbara, per the Revenue Neutrality Agreement (RNA). The amount shared with the County is estimated to be approximately $4.0 million for FY 22/23.

FY 2019/20 FY 2020/21 FY 2021/22 Prior Year
Year End
Actuals
Year End
Actuals
Year End
Actuals
Current
Budget
Year End
Actuals
%
Realized
Year End
% Chg
Property Taxes 7,684,647 8,237,033 8,655,521 8,547,387 9,332,590 109.2% 7.8% Sales Taxes 6,735,609 7,585,649 8,572,807 8,316,500 8,726,058 104.9% 1.8% Transient Occupancy Tax 9,197,440 9,239,079 14,341,129 13,100,000 13,882,621 106.0% -3.2% Cannabis Tax 391,342 2,083,171 1,738,534 1,100,000 1,021,742 92.9% -41.2% Franchise Fee 1,361,348 1,410,787 1,513,730 1,592,100 1,636,443 102.8% 8.1% License & Service Charges 1,823,082 1,645,798 1,929,169 2,011,800 2,118,713 105.3% 9.8% Fines & Penalties 165,935 118,873 168,275 141,000 163,584 116.0% -2.8% Interest & Rent Income 565,849 209,018 (105,801) 334,000 994,284 297.7% -1039.8% Reimbursements 471,326 359,354 386,437 326,000 298,160 91.5% -22.8% Other Revenues 260,453 85,368 398,976 119,222 125,481 105.2% -68.5% Other Sources 29,983 10,033,316 24,704 43,800 28,558 65.2% 15.6% Total Revenues $ 28,687,014 $ 41,007,446 $ 37,623,480 $ 35,631,809 $ 38,328,234 107.6% 1.9% Revenues
FY 2022/23
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Overall property tax revenues received of $9.3 million exceeded budget projections by $785,203 or 9.2%. On an actual basis, compared to the prior fiscal year, overall property tax revenues increased by $677,069 or 7.8%. This increase was due to RDA pass-through payments and large one-time Documentary Transfer Tax received, primarily due to the sale of Ritz Carlton – Bacara property back in November 2022.

Sales Tax
Sales tax collections are projected to be the third largest revenue source for the City at $8.3 million and account for 22.8% of total General Fund revenues. Sales tax is considered one of the most volatile revenue sources given the dependency on consumer behavior and business activity. The City does not receive its full 1% sales tax (also known as BradleyBurns) allocation of the 7.75% sales tax rate that is normally allocated to cities. The City shares 30% of the 1% sales tax revenues with the County of Santa Barbara, per the RNA.

The amount projected to be shared this fiscal year is approximately $3.6 million.

The City’s sales tax base is generated from various main industry categories, including General Consumer Goods with a dominant share at an average of 20%. The General Consumer Goods category is represented by a multitude of retail stores that provide various consumer goods. The businesses in this category include large discount department stores, electronics stores, home furnishing stores and other retail stores. The next largest industry categories are the State and County Pools (primarily online sales) now at 18% (historically 14%). When combined together, these two industry groups account for 38% of the City’s sales tax base. It is then supplemented by Business and Industry (manufacturers and industrial), Restaurants and Hotels (dining establishments, fast food, and bars), Building and Construction at 13% to 12%, and Autos and Transportation at 10%. For comparison purposes the percentage share by the eight major industry groups for the City is seen in Figure 1 below:

Figure 1 - Sales Tax by Major Industry Groups
Autos and
Transportation
10%
Building and
Construction
12%
Business and Industry
13%
Food and Drugs
6% Fuel and Service
Stations
8%
General Consumer
Goods
20%
Restaurants and Hotels
13%
State and County Pools
18%
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Total sales tax revenues received through end of the fiscal year reached $8.7 million, which exceeded the budget projections of $8.3 million by $409,558 or 4.9%. In comparison to the prior year of $8.56 million, sales tax revenues were up by $153,252 or 1.8%. While this was a small increase, overall sales tax activity remained flat when adjusted for economic data.

At a recent key sales tax meeting staff had with our consultants HdL in August, sales tax revenues started to experience a slight decline for the January-March period. Sales weakened in multiple sectors due to pricing pressures on essentials such as food and energy as federal policy makers increased rates to control inflation and cool consumer demand along with wet weather experienced during that quarter. . Staff will have its next key sales tax update in October for the actual activity for the April through June period.

Transient Occupancy Tax (TOT)
The City’s TOT was the largest General Fund revenue source at 37% this fiscal year. TOT has historically been the largest revenue source since FY 2012/13. TOT is the most volatile and was the most impacted by the pandemic due to a decrease in overnight stays and has since recovered.

Based on actual receipts, TOT revenues were at $13.9 million, which exceeded budget projection of $13.1 million by $782,621 or 6.0%. When compared to the prior year of $14.3 million, TOT revenues were down $458,508 or -3.2%. This decrease is due to average daily rates and occupancy levels trending down from the prior year historic highs, though still above pre-pandemic levels. Occupancy rates for the July through June period were on average between 60% and 90% with the average daily rate ranging between $242 and $421. Pre-pandemic occupancy rates were between 79% to 89% with the average daily rate between $260 to $296.

Table 4 and Figure 2 summarize the actual TOT revenues received by month since FY 18/19.

Table 4 - TOT Revenues for the Twelve Months of FY 2022/23 Month
2018/19
Actuals
2019/20
Actuals
2020/21
Actuals
2021/22
Actuals
2022/23
Actuals
$ Chg from
Prior Year
% Chg from
Prior Year
July $ 1,325,613 $ 1,389,695 $ 669,922 $ 1,704,247 $ 1,618,463 $ (85,784) -5.0% August 1,278,046 1,365,353 894,806 1,546,744 1,524,417 (22,327) -1.4% September 1,010,472 1,057,156 858,289 1,322,884 1,458,868 135,985 10.3% October 904,428 1,008,713 845,369 1,130,339 1,146,863 16,524 1.5% November 875,203 826,170 639,146 969,235 1,059,141 89,906 9.3% December 692,371 731,050 322,282 889,565 856,252 (33,314) -3.7% January 677,067 740,150 348,766 683,128 705,485 22,357 3.3% February 777,694 826,479 524,788 867,652 822,959 (44,693) -5.2% March 883,099 391,077 758,298 1,159,034 986,522 (172,512) -14.9% April 982,306 111,640 1,018,359 1,412,193 1,211,553 (200,640) -14.2% May 972,262 238,349 1,057,257 1,251,448 1,114,755 (136,693) -10.9% June 1,185,351 511,608 1,301,798 1,404,659 1,377,342 (27,317) -1.9% Total $ 11,563,912 $ 9,197,440 $ 9,239,079 $ 14,341,129 $ 13,882,621 $ (458,508) -3.2% 18/19 Baseline $ Change $ (2,366,473) $ (2,324,833) $ 2,777,216 $ 2,318,708 18/19 Baseline % Change -20.5% -20.1% 24.0% 20.1%
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Figure 2 – TOT Monthly Trend
Cannabis Business Tax
On November 6, 2018, the voters passed Measure Z2018, establishing a tax on cannabis business operations within the City of Goleta. The passing of this ballot measure subjects cannabis businesses to taxation on gross receipts of cannabis based on classifications up to a maximum of 10 percent. The current tax rates are seen in Table 5:

Table 5 – Current Cannabis Tax Rates
Through the end of fiscal year, the City of Goleta had 13 active licenses, 1 about to be licensed and 1 other operator in the pre-license site inspection phase. When excluding $0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Goleta TOT Monthly Trend
2018/19
Actuals
2019/20
Actuals
2020/21
Actuals
2021/22
Actuals
2022/23
Actuals
Cannabis Business Classification Activities Taxed Tax Rate Adult Use Cannabis Retailing Gross Receipts 5%
Medicinal-Use Cannabis Retailing Gross Receipts 0%
Manufacturing Gross Receipts 2%
Cultivation Gross Receipts 4%
Distribution Gross Receipts 1%
Testing Gross Receipts 0%
Nurseries Gross Receipts 1%
Maximum Tax Limit Gross Receipts 10%
Maximum Cap for Multiple Operations Gross Receipts 10%
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businesses with multiple locations, there are currently 11 business operators, with 10 operators now reporting cannabis business tax revenues. One operator licensed as a Microbusiness gave notice earlier this year they will no longer be operating due to market conditions. A summary of the licenses can be seen in Table 6 below.

Total cannabis business tax revenues received through June 30th were approximately $1.02 million and fell short of the $1.1 million revised budget projection by (-$261,466) or - 7.1%. When compared to prior year revenues of $1.7 million, cannabis revenues were down (-$716,792) or -41.2%. This decrease was anticipated due to the ongoing volatility and uncertainty around this new revenue source, and as mentioned, revenues were revised down during Q2. During Q2, staff had recommended the original projected budget of $2.1 million to be decreased downward to $1.1 million.

Staff has had discussions with cannabis operators and other jurisdictions and cannabis tax revenue activity continues to be impacted by increased competition and oversupply statewide. In addition, distribution operators have continued to express issues with the black market across the state and supply and demand being affected by limited access to legalized cannabis. As of December 6, 2022, the Department of Cannabis Control reports 1,085 active cannabis store front retail licenses statewide and 328 out of the 539 (61%) cities and counties do not allow any retail cannabis business. The cost of doing business is also being affected with inflationary factors and having limited access to capital markets to assist with cash flow and operations. Other issues include difficulties with operators collecting payment from other retailers across the state due to federal regulations.

At the end of June 2023, staff learned that HERBL (cannabis distributor) has filed for receivership. Staff is working with its cannabis consultants and assigned receiver for any tax HERBL may still owe. Right now it is estimated about $29,000. It is still unclear what will happen to the property. Staff have cannabis inspections coming up later this month and will find out more and share with Council once known.

While not part of this financial year-end review, it should be noted that due to the receivership of HERBL, staff will be recommending a FY 23/24 Q1 adjustment to the cannabis business tax revenues from $1.13 million to about $600,000, a decrease of $530,000 or -47%. Staff expects cannabis will continue to experience ongoing volatility as uncertainty surrounds the cannabis industry. Staff will continue to evaluate the cannabis tax activity and potential fiscal impacts as new operators begin to collect and remit taxes.

In addition, staff plans to conduct financial audits with its consultants for proper reporting early next fiscal year. Should revenues continue to fall short of estimates, the unassigned fund balance is available to serve as a revenue stabilizer and absorb the impact.

Table 6 below summarizes the approved Cannabis Business License Operators as of the date preparing this report and the pending applicants in process.

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Table 6 – Cannabis Business License Application Summary In March 2022, staff completed work with its cannabis consultants, HDL, and performed an analysis on the current tax rates and types of businesses. A report was prepared with recommendations and was discussed with the Finance Committee in October 2021 and at a City Council workshop in March 2022. City Council provided direction to staff in support of adjusting the medicinal retail tax to be set at the retail rate of 5% and was also supportive of updating the cannabis ordinance extending the allowable hours of operation for cannabis retailers to 10:00 p.m., rather than the current 8:00 p.m. Extending these hours could allow the City’s retailers to recapture sales (and related sales tax revenue) that are likely being lost to retailers in nearby jurisdiction during these hours. These changes will require a resolution and ordinance update that is planned to be brought back in October.

Franchise Fees
The City collects franchise fees from four main service provider sources (Cable, Electric, Gas, Solid Waste). Each provider of these services has a different payment schedule.

Electric and Gas providers make annual payments in April. The Cable provider is on a quarterly payment plan, while Solid Waste fees are collected monthly. Total franchise fees collected by the end of fourth quarter were $1.6 million, which exceeded budget estimates by $44,343 or 2.8%. In comparison to prior year, franchise fees increased by $122,713 or

8.1%.
# Status Business Application Name Location Primary License Type Notes 1 Approved CalGreen
(Legal Non-Conforming)
164 Aero Camino Storefront Retail
2 Approved Santa Barbara Care Center
(Legal Non-Conforming)
5814 Gaviota Street Microbusiness Storefront Retail
Cultivation
Distribution
3 Approved Organic Greens Collective
(Legal Non-Conforming)
5902 Daley Street Storefront Retail
4 Approved Green Rush Alliances LLC 6332 Lindmar Ave Manufacturing Distribution Currently expanding licensed
premise - Pre-license
inspection scheduled in June
5 Approved Greenbridge Patient Collective 5940 Matthews St Microbusiness Distribution Manufacturing
Non-Storefront Retail
6 Approved Sublime Processing 123 Aero Camino Unit A Microbusiness Manufactuer Distribution
Non-Storefront Retail
7 Approved HERBL 759 Ward Drive Distribution Under receivership 8 Approved HERBL 839 Ward Drive Distribution Under receivership 9 Approved HERBL 749 Ward Drive Distribution Under receivership 10 Approved Thornwood Distribution LLC 5756 Thornwood Drive Cultivation (Processor) Nursery 11 Approved One Plant 290 Storke Road Storefront Retail 12 Approved Firefly Delivery, LLC 5775 Dawson Ave Non-Store Front Retail (Delivery)
Delivery only
13 Approved AGQ Green Nature 859 Ward Drive. Suite 103 Testing Testing facility 14 Pending Hollister Distribution, Inc. 5631 Calle Real Storefront Retail Anticipated to be licensed by end of September
15 Pending Megan's Organic Market 5999 Hollister Storefront Retail Application received and review in process
16 No longer
operating
Ocean Grown Farms 176 Aero Camino Microbusiness Distribution Manufacuring
Non-Storefront Retail
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Licenses and Service Charges
This revenue category reflects the user fees (cost recovery) and charges as they relate to business license processing, planning and building permit fees, staff time charges related to development activity, and library management service charges. All revenue accounts were revised and updated to reflect anticipated activity for FY 2022/23. Table 7 summarizes the primary revenue accounts within the Licenses and Service Charges category.

Table 7 – Licenses and Service Charges Summary
Through the end of the fourth quarter, revenues were at $2.1 million, which exceeded budget projections by $106,913 or 5.3%. In comparison to the same period in prior year, overall revenues increased by $189,543 or 9.8%, primarily due to building permit activity and plan check fees.

Fines and Penalties
The City collects various fines and penalties related to traffic, parking, towing, and lost item fees related to the library. Overall receipts of $163,584 exceeded budget projections by $22,584 or 16%. In comparison to the same period last year, overall revenues were down by -2.8%.

Interest and Rent Income
Interest and rent income accounts for rental income from property owned by the City as well as investment earnings generated from the City’s investment program. Through the end of the fourth quarter, interest and rent income was at approximately $1 million, which exceeded budget projections by $660,284 or 197.7%. In comparison to prior year for the same quarter, revenues increased by $1.1 million or 1,039.8%. This increase is due to higher interest earnings due to a rising interest rate environment and apply a year-end fair market value (FMV) adjustment. An FMV adjustment of -$89,120.49 was applied to the City’s investment program as required by the Governmental Accounting Standards Board (GASB) and reflects an FMV amount of unrealized gains and losses. When considering only actual realized interest earnings, total revenues were at $956,877, which exceeded budget projections by $716,877 or 300%. It should be noted that as Finance staff onboards new staff and fills vacancies, staff is continuing to build out its investment program.

FY 2019/20 FY 2020/21 FY 2021/22 Prior Year
Year End
Actuals
Year End
Actuals
Year End
Actuals
Current
Budget
Year End
Actuals
%
Realized
Year End
% Chg
Legal Deposits Earned 1,750 398 15,982 1,000 7,300 730.0% -54.3% Planning Fees 98,430 110,688 134,161 103,000 117,807 114.4% -12.2% Planning Deposits Earned 254,711 282,665 255,513 200,000 329,810 164.9% 29.1% Building Permits 627,244 416,490 422,776 605,000 456,122 75.4% 7.9% Public Works Deposits Earned 69,413 56,564 44,588 58,000 32,733 56.4% -26.6% PW/Engineering Fees 63,314 89,753 134,593 125,000 97,640 78.1% -27.5% Solid Waste Roll Off Fees 32,942 28,041 29,120 30,000 26,455 88.2% -9.2% Business License 340,718 374,896 515,712 452,000 538,992 119.2% 4.5% Plan Check Fees 259,137 210,843 290,934 334,500 397,352 118.8% 36.6% Other Licenses & Charges 75,422 75,461 85,791 103,300 114,501 110.8% 33.5% TOTAL $ 1,823,082 $ 1,645,798 $ 1,929,169 $ 2,011,800 $ 2,118,713 105.3% 9.8% Licenses and Service
Charges
FY 2022/23
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Reimbursements
This revenue category primarily accounts for all staff time reimbursements (cost recovery) related to the CIP and Redevelopment Successor Agency administrative and direct costs.

Additionally, it includes claim reimbursements or other one-time miscellaneous reimbursements. Staff that work directly on projects or programs supported by special revenue funds can charge staff time against the CIP project budgets supported by special revenue funds (if eligible) and reimburse the General Fund. The overall amounts vary year to year, depending on the use of contract engineering services. Contract engineering services are paid directly from the CIP project budgets supported by the special revenue funds, and therefore do not require payments from the General Fund. The revenues received through the end of the quarter totaled $298,160 and were at 91.5% of the total budgeted amount of $326,000. In comparison to prior year, revenues decreased by approximately -$27,840 or -22.8%. This decrease is primarily related to interfund reimbursement activity. Staff are still finalizing and further reviewing any year-end adjusting journal entries to reflect reimbursement associated with administration and direct cost with the Redevelopment Successor Agency.

Other Revenues
This category accounts for all other remaining General Fund revenue amounts such as Motor Vehicle License Late Fees (MVLF), Friends of the Library donations, one-time donations, and miscellaneous revenues. Revenues were at $125,481 by the end of the quarter or approximately 105.2% of the total budgeted amount of $119,222. In comparison to prior year for the same quarter, revenues decreased by -68.5%. This decrease is primary due to the one-time payment in-lieu of TOT received in the prior year.

Other Sources
This category accounts for other financing sources such as funds transferred in from other funds or other fund resources received from transactions such as sale of securities or cash received from loans or when bonds are issued. City staff utilize this category to account for funds transferred in for staff time spent in administering the Community Development Block Grants (CDBG) program. Other sources received through the end of the quarter were at

65.2% or $28,558 of the total budget amount of $43,800. This was due to less than anticipate staff time activity charged.

General Fund Expenditure Analysis:

The General Fund expenditures budget is currently at $56.7 million. Total preliminary actual expenditures through the fourth quarter were at $37.9 million or 66.9% of budget. Staff is still finalizing carryovers, though based on preliminary numbers, approximately $13.5 million of expenditure savings will be carried forward into FY 23/24. When factoring estimated carryovers, this adjusts the expenditures savings at approximately $5.3 million. carryovers are the result of encumbered funds not paid until after the end of the fiscal year and required to be reported in the new fiscal year and one-time programmed budget for active and ongoing CIP projects and special departmental projects that were not completed DRAFT 214 of 301
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in previous year. Final carryovers and details will be reported back in the FY 23/24 Q1 Financial Review.

Table 8 summarizes the General Fund expenditure budget activity by department, which is followed by a brief discussion of the key expenditure variances and recommended yearend adjustments.

Table 8 - General Fund FY 2022/23 Expenditures through Q4 (June 30) All departments were within range of their overall allocated budgets as of June 30, 2023.

When comparing total actual expenditures to the prior fiscal year, the City spent approximately $6.8 million or 21.8% more than FY 21/22. Provided in Attachment 2 of this report is a “Budget to Actuals” comparison of the Department’s divisions and programs.

At this time, staff are recommending various cleanup adjustments to the CIP program project budgets, reducing the General Fund portion down by $1.05 million. These projects were either confirmed to be closed or General Fund appropriation was not needed right now. These types of adjustment reductions were part of discussion during adoption of the FY 23/24 and FY 24/25 Budget. Additional details can be found in Attachment 5.

General Fund - Fund Balance and Reserves:

Table 9 shows a recap of Fund Balance as of June 30, 2022 and June 30, 2023, which has been revised. The revised ending fund balance reflects actual revenues and expenditures, and factors in estimated carryover amounts related to FY 22/23, including adjusting certain reserve categories at policy level, such as compensated leave balances to be reset at 50% of the value on June 30th and adjusting fair market value. The amounts are subject to change after the audit is complete and final numbers will be reported in the First Quarter Financial Review for FY 23/24.

FY 2019/20 FY 2020/21 FY 2021/22 Prior Year
Year End
Actuals
Year End
Actuals
Year End
Actuals
Current
Budget
Year End
Actuals
%
Realized
Year End
% Chg
General Government 5,150,183 5,195,252 6,401,327 6,417,980 6,090,971 94.9% -4.8% General Services 0 0 454,270 3,690,051 2,823,600 76.5% 521.6% Library 352,834 320,760 251,077 434,591 369,363 85.0% 47.1% Finance 978,992 955,919 1,196,075 1,793,380 1,391,911 77.6% 16.4% Planning & Env. Review 3,635,871 3,174,574 3,382,657 4,954,651 3,650,553 73.7% 7.9% Public Works 4,427,725 4,435,670 7,525,224 15,385,619 9,243,873 60.1% 22.8% Neighborhood Services 1,975,908 2,347,229 1,761,892 2,726,634 2,240,820 82.2% 27.2% Public Safety 7,452,279 6,959,079 8,470,638 9,766,000 9,157,530 93.8% 8.1% Non-Departmental 845,484 837,282 1,452,398 1,847,600 1,840,096 99.6% 26.7% Capital Improvement Projects 10,681,884 1,266,975 251,642 9,716,689 1,130,063 11.6% 349.1% Total Expenditures $ 35,501,161 $ 25,492,739 $ 31,147,198 $ 56,733,194 $ 37,938,780 66.9% 21.8% Expenditures
FY 2022/23
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Table 9 – General Fund FY 2022/23 – Estimated Fund Balance and Reserves As shown above, the revised estimated FY 2022/23 total fund balance is projected at $39.6 million as of June 30, 2023. After factoring in additional revenues, expenditure savings, and adjusting for estimated carryovers and reserves, the unassigned fund balance is projected at $8.4 million at June 30, 2023. The unassigned fund balance are funds that are not committed for any specific purpose and is used for economic stability should revenues fall short, liquidity/cash flow needs, and for various unanticipated one-time projects or other one-time priority needs. It should be noted that the $8.4 million is in line with the staff’s projection during the FY 23/24 and FY 24/25 budget adoption, which included utilization of the unassigned fund balance for CIP and other one-time projects. When considering those amounts, staff are projecting an approximate $3 million adjusted unassigned fund balance.

Updated fund balance information will be provided in the Q1 Financial Review and will be adjusted as the City’s closes their books and completes their audit.

Note: Finance Annual Work Program for FY 23/24 includes a comprehensive review of evaluating reserve categories and amounts under long range projects contingent on staff capacity.

Revenue Neutrality Agreement (RNA):

The receipts and payments as a result of the RNA are not included in the budget. Under the RNA Agreement, the County is allocated 30% of the 1% Sales Tax revenues generated within the City of Goleta and shares equally in the Property Tax revenues of the City. The estimated cost for FY 2022/23 of the total RNA payments is $7.3 million. The estimated total contribution since City incorporation in 2002 is approximately $143.9 million through the end of FY 2022/23.

Capital Improvement Program and Other Funds:

Staff has provided Attachment 3 to summarize all other Special Revenue Fund revenues and expenditures with budget-to-actual comparison. On a budget basis, the various granttype funds are balanced with revenues matching expenditures. However, on an actual basis, funds are reimbursed after they are expended. The reimbursement requests for grant Classification
FY 21/22
Ending Fund Balance Increase Decrease
FY 22/23
Est. Ending Fund
Balance
Reserve
Adjustments
FY 22/23 Revised
Est. Ending Fund
Balance
Prepaids and Deposit 26,176 (26,176) - 15,049 15,049
City Hall Solar Removal 94,500 94,500 94,500
Public Facilities/Building Maintenan 830,108 830,108 830,108 Capital Equipment 791,653 791,653 - 791,653
Compensated Leave 407,606 407,606 19,759 427,365
Building Maintenance - - -
Risk Management 200,000 200,000 200,000
Litigation Defense Fund 300,000 300,000 600,000 600,000 Contingency 10,129,713 1,105,541 11,235,254 11,235,254
Street Maintenance - - -
Sustainability - - -

OPEB UAL - - -
CalPERS Pension UAL - - -
CIP Project - Train Depot Match - - -
CIP Project Funding 3,034,236 (3,034,236) - 8,586,626 8,586,626 Encumbrances 3,410,472 (3,410,472) - 4,957,399 4,957,399 FMV Adjustment 429,996 429,996 89,120 519,117
Unassigned Fund Balance - Held
for liquidity and revenue stability - - - - 3,000,000 3,000,000 Unassigned Fund Balance 19,614,480 5,454,797 25,069,277 (16,667,954) 8,401,322 Total 39,268,940 $ 1,405,541 $ (1,016,087) $ 39,658,394 $ - $ 39,658,394 DRAFT 216 of 301
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expenditures are submitted either on a monthly or quarterly basis by the department staff responsible for the project reimbursements. Any negative balances are due to the timing of revenues being received by the City. Revenue projections are reviewed on a quarterly basis and recommended adjustments are made when necessary. The Other Funds section below briefly describes the financial activity through the quarter. Attachment 4 provides a CIP Expenditure Summary on a budget to actual basis to ensure that projects do not exceed the appropriations allocated to the project.

Other Funds:

Gas Tax Fund (Fund 201)
The state imposes sales taxes and per-gallon excise taxes on gasoline and diesel fuel. The local portion of these allocation flows through the Highway Users Tax Account (HUTA).

State law requires that these funds be used exclusively for maintenance of the street and highway system. Gas tax revenues through the end of the quarter are at $856,932 or 96% of the $892,266 revenue budget amount. Budgeted expenditures are programmed at $2.6 million for the fiscal year and actual expenditures were at $1.5 million or 55.7% of budget.

The unspent budget will be carried over for the pavement rehabilitation project.

SB1 Road Maintenance & Repair Act (RMRA) (Fund 203)
Senate Bill 1 (SB 1) – Road Repair and Accountability Act of 2017 has been in effect since November 1, 2017. Revenues are generated from fuel and vehicle registration taxes. State law requires these funds be used exclusively for the transportation system. SB 1 revenues through the end of the quarter are at $690,837 or 95.7% of the $722,119 revenue budget amount. Budgeted expenditures are programmed at $1.4 million. Through the end of the quarter $1.02 million or 73.1% of budget has been expended. All budget is programmed towards the City’s pavement rehabilitation program and budget balances will continue to carry over for that purpose.

Measure A Fund (Fund 205)
The Santa Barbara County Association of Governments (SBCAG) receives a half-cent sales tax for transportation improvements in Santa Barbara County. The City of Goleta receives a portion of those funds to use exclusively for transportation related purposes.

Measure A revenues through the end of the quarter are at $2.3 million or 111.6% of the $2.1 million revenue budget amount. Budgeted expenditures are programmed at $5.2 million and include a year-end budget amendment request of $-470,678 related to cleanup to CIP projects. Through the end of the quarter $1.4 million or 26.7% of budget have been expended. Budget balances will continue to be carried over into FY 23/24 for its transportation and street maintenance related projects.

Recommended Budget Amendments – Special Revenue Funds:

Staff is recommending various expenditure budget adjustments for other various Special Revenue Funds. Additional details and corresponding revenue adjustment (if applicable) is found in Attachment 5 – Exhibit A.

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FINANCE COMMITTEE REVIEW:

The Finance Committee met to review the Fiscal Year 2022/23 Fourth Quarter Financial Review Report on September 11, 2023.

FISCAL IMPACTS:

General Fund
Total General Fund revenues are estimated at $38.3 million, which was $704,754 or 1.9% more than prior year of $37.6 million. On a budgetary basis, revenues exceeded revised projections by $2.7 million or 7.6%. Total General Fund expenditures are estimated at $37.9 million, which was approximately $6.8 million or 21.8% more than prior year. On a budgetary basis, expenditures were less than projected by $18.8 million or -33.1%. Based on the preliminary year-end numbers (including estimated carryovers), the overall General Fund experienced a net increase to total fund balance of approximately $389,454. Staff is in process of finalizing budget carryovers and numbers and details will be reported in the First Quarter Financial Review for FY 23/24 after completion of its financial audit.

Expenditures are recommended for a decrease of -$1.05 million. After adjustments, the total ending fund balance is projected at $19.2 million, which includes an unassigned fund balance of $10.6 million ($3 million held for revenue stabilization and liquidity, and $7.6 million available for one-time use).

In addition, after closing out year-end and completing the audit and receiving its updated OPEB (retiree health) actuarial report, staff plans on further analyzing the one-time salary and benefit savings experienced and will be recommending allocating that amount towards the Section 115 Trust for Pensions and OPEB. A separate report will be brought back first to the Finance Committee and then the City Council for authorization. Preliminary projections have total salary and benefit savings realized of approximately $1.8 million.

Additional details of the accounts affected by the recommended General Fund budget adjustments can be found in Exhibit A that is part of Attachment 5 – Resolution Amending the City’s Operating and CIP Budget for Fiscal Year 2022/23.

Other Funds
Recommended amendments to Other Special Revenue Funds that were described above can be found in detail in Attachment 5 - Exhibit A. Council is asked to adopt the attached resolution (Attachment 5) approving the recommended budget adjustments.

City’s Cash Flow and Position:

The City’s Finance Department monitors its cash flow and position daily. The cash funds are pooled and are considered very liquid, as most of its funds are invested in overnight pooled investment accounts such as LAIF or its money market account. The City’s special revenue accounts have committed fund balance that is pooled all together with the General Fund. When pooled all together, the City’s cash position on June 30th was approximately $77 million.

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ALTERNATIVES:

Council may elect not to adopt the attached resolution, thereby leaving the budget as previously approved; however, certain budget recommendations are necessary to meet obligations and financial reporting requirements.

Reviewed By: Approved By:
_________________ _________________
Kristine Schmidt Robert Nisbet
Assistant City Manager City Manager
ATTACHMENTS:

1. General Fund Statement of Revenues & Expenditures

2. General Fund Interim Statements by Department

3. Interim Revenue and Expenditure Summary by Fund

4. CIP Expenditure Summary by Project

5. Resolution Amending the City’s Operating and CIP Budget.

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ATTACHMENT 1:

General Fund Statement of Revenue and Expenditures
Budget to Actual Comparison
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Attachment 1
Property Taxes 8,478,600 68,787 8,547,387 9,332,590 109% - 8,547,387 Sales Taxes 8,316,500 - 8,316,500 8,726,058 105% - 8,316,500 Transient Occupancy Tax 13,100,000 13,100,000 - 13,882,621 106% - 13,100,000 Cannabis Tax 2,100,000 (1,000,000) 1,100,000 1,021,742 93% - 1,100,000 Franchise Fee 1,408,900 183,200 1,592,100 1,636,443 103% - 1,592,100 License & Service Charges 1,687,300 324,500 2,011,800 2,118,713 105% - 2,011,800 Fines & Penalties 141,000 - 141,000 163,584 116% - 141,000 Interest & Rent Income 334,000 - 334,000 994,284 298% - 334,000Reimbursements 326,000 - 326,000 298,160 91% - 326,000 Other Revenues 105,000 14,222 119,222 125,481 105% - 119,222Other Sources 43,800 - 43,800 28,558 65% - 43,800 Total Revenues 36,041,100 (409,291) 35,631,809 38,328,234 108% - 35,631,809General Government 6,218,750 199,230 6,417,980 6,090,971 95% - 6,417,980 General Services 3,281,675 408,376 3,690,051 2,823,600 77% - 3,690,051 Library 434,600 (9) 434,591 369,363 85% - 434,591
Finance 1,789,500 3,880 1,793,380 1,391,911 78% - 1,793,380 Planning & Env. Review 4,293,800 660,851 4,954,651 3,650,553 74% - 4,954,651 Public Works 8,098,300 7,287,319 15,385,619 9,243,873 60% - 15,385,619Neighborhood Services 2,074,600 652,034 2,726,634 2,240,820 82% - 2,726,634Public Safety 9,766,000 - 9,766,000 9,157,530 94% - 9,766,000 Non-Departmental 858,000 989,600 1,847,600 1,840,096 100% - 1,847,600 Capital Improvement Projects 7,260,078 2,456,611 9,716,689 1,130,063 12% (1,050,683) 8,666,006 Total Expenditures 44,075,303 12,657,891 56,733,194 37,938,780 67% (1,050,683) 55,682,511 Net Change in Fund Balance (8,034,203) (13,067,182) (21,101,385.2) 389,454 1,050,683 (20,050,702)Beginning Fund Balance 39,268,940 39,268,940 39,268,940 39,268,940 Ending Fund Balance 31,234,737 18,167,555 39,658,394 19,218,238 Expenditures Original Budget Prior Revisions Current Budget % of Budget Amended Budget 6/30/2023 Actuals Recommended Revisions General Fund Statement of Revenue and Expenditures
City of Goleta
Amended Budget Recommended Revisions Original Budget Prior Revisions Current Budget 6/30/2023 Actuals % of Budget Budget to Actual Comparison
For the Quarter Ended June 30, 2023
Revenues

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Finance and Audit CommitteeSeptember 11, 2023

Finance and Audit Committee
September 11, 2023