Goleta City Council
April 16, 2024

Agenda Item A.3

CPMS CONSENT CALENDAR
Meeting Date: April 16, 2024
TO: Mayor and Councilmembers
SUBMITTED BY: Luke Rioux, Finance Director
PREPARED BY: Tony Gonzalez, Accounting Manager
SUBJECT: Annual Comprehensive Financial Report and Single Audit Report for the Year Ended June 30, 2023
RECOMMENDATION:

Accept the Annual Comprehensive Financial Report and Single Audit Report for the Year Ended June 30, 2023.

BACKGROUND:

Annual Comprehensive Financial Report
The City of Goleta annually conducts an independent audit of financial transactions and issues th e Annual Comprehensive Financial Report (ACFR) . The City’s Finance Department has prepared the ACFR 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 FY 2022/23 ACFR was audited in accordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants, Rogers, Anderson, Malody, & Scott, LLP (RAMS).

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 ex panded 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 1 Meeting Date: April 16, 2024

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 i n Attachment 1. An unmodified opinion indicates that the financial statements fairly present the financial position of the City of Goleta as of June 30, 2023, 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 into three sections: introductory, financial, and statistical.

The Introductory section includes the letter of transmittal 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 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, RAMS also reviewed and performed tests of the City’s internal accounting control procedures to determine if there were any material weaknesses or instances of non -compliance. Based on the audit, no instances of non -compliance or material weaknesses were noted.

Single Audit Report

The Single Audit, previously known as the Office of Management and Budget (OMB) Circular A-133 audit, is an organization-wide financial statement and federal awards audit of an entity that expends $750,000 or more in federal funds in one fiscal year. It is intended to provide assurance to both the Federal and State Governments that the City has adequate internal controls in place and is generally in compliance with program requirements. Local governments are required to obtain an audit pursuant to the Federal Single Audit Act Amendments of 1996 and prepare a reporting package that is submitted to:

 California State Controller’s Office (SCO), which serves as the Single Audit oversight agency for most California local governments.
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 Caltrans, if the city has received federal funding specifically from Caltrans for transportation-related projects.
 Federal Audit Clearinghouse (FAC), which acts as an executive agent for the OMB.

The City’s Single Audit Report must be prepared and submitted in compliance with the financial reporting requirement in accordance with Title 2, Code of Federal Regulations (CFR), Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). The reporting package is a collection of several documents, which includes the ACFR, associated auditor letters and the Single Audit Report. To comply with this mandate, the City’s annual contract with its independent auditors, RAMS includes Single Audit services, should it be required for the 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, 202 3, the City’s net position totaled $265.81 million, a decrease of approximately $629 thousand or 0.2% from the prior fiscal year of $ 266.44 million. See Note 13 in the ACFR regarding a prior period adjustment in FY21/22 from $269.25 million to $266.44 million. The largest portion of the City’s net position consisted of the City’s net investment of $19 9.41 million, of which 75% consists of 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 can be foun d 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 $51.21 million, which was a decrease of approximately $1.48 million or 2.8% from the $52.70 million in revenues the previous fiscal year. The decrease is primarily related to cannabis business taxes and transient occupancy taxes . Cannabis tax revenues decreased by $ 714 thousand, or 41%, in the 202 3 fiscal year to $ 1.02 million. Transient occupancy tax revenues decreased by $0.45 million, or 3.2%, to $13.88 million in the 2023 fiscal year.

The City’s overall total expenditures were $51.84 million for the fiscal year, which was an increase of $10.66 million or 25.9% when compared to last fiscal year. Expenses include a wide range of services such as general government, planning and environmental review, neighborhood services, public safety (police protection services), public works, and capital improvement projects. Public works had an increase of $ 6.01 million or

36.4%, primarily related to pavement projects.

The unrestricted net position increased by $ 153 thousand or 0.5% for a total of $3 0.72 million (11. 6% of total net position) and may be used at the City’s di scretion to meet ongoing operating needs.
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General Fund Highlights

During the City’s 21st full fiscal year, the General Fund reported total revenues of $38.34 million and total expenditures of $3 8.16 million, resulting in excess revenues over expenditures of approximately $ 175 thousand . 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 23/24.

Revenues: Actual revenues of $38.34 million received came higher than the Final Budget of $35.59 million by $2.75 million, primarily because of higher tax receipts than anticipated with property tax, sales tax, and transient occupancy tax . Overall actual revenues increased by approximately $740,000 or 2.0% when compared to the prior fiscal year.

Property tax experienced higher assessed valuations due to a combination of a 2% inflation adjustment on ass essed values for all property types and changes in the assessed value due to transfer of ownership. Assessed valuation changed by approximately 6.7%. Sales tax exceeded budgeted projections by 4.9% or 1.8% when compared to the prior fiscal year’s actuals. While this was a small increase, overall sales tax activity remained flat when adjusted for economic data. Transient occupancy tax (TOT) is the largest general fund revenue source , totaling $13.9 million and surpassing budgeted projections by 6.0%. Despite this positive variance, TOT revenues experienced a 3.2% decline when compared to the previous fiscal year (FY 21/22), which recorded $14.3 million. Further analysis can be found in the Management and Discussion Analysis section of the ACFR.

Expenditures: Actual expenditures of $3 8.16 million were under the Final Budget of $55.58 million by $1 7.42 million in all areas. Lower than anticipated expenditures were recognized by all departments. Various savings were recognized due to staff vacancies, lower expe nditures associated with professional and contract services and deferred special and capital projects that are now carried over in FY 2 3/24. Carryovers from FY 22/23 were approximately $12.5 million.

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. 53 million as of June 30, 2023. This amount was higher than the final bud get projection by $21.4 million or higher by $263,000 when compared to the prior fiscal year . This actual increase was a result of higher revenues and less expenditure activity experienced in the fiscal year , as described above. The fund balance categories and amounts at year-end are displayed in the following table:
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When comparing the total audited ending fund balance of $39.53 million to the estimated ending fund balance amount of $39.66 million provided to City Council in September 2023 during the 4 th Quarter Financial Review (Unaudited), the amount is slightly lower by $126,344 due to year-end adjustments. It should be noted that the Fund Balance in the Financial Statements now includes the Fund Balance for the City’s Section 115 Trust Pension Funding Investments, which was not included in the 4th Quarter Financial Review (Unaudited). This change is noted in Note 13 Prior Period Adjustments of the ACFR.

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 a total Assigned amount of $12.5 million for capital improvement projects and special projects into the next fiscal year , as well as approximately $500 thousand to stabilize fair market value adjustments of investments. All remaining fund balance is placed in the Unassigned Fund Balance, which stood at $12.3 million at fiscal year-end June 30, 2023.

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 City’s external audit firm as part of the annual audit process. As of June 30, 2023, the City had not reached its Article XIIIB spending limitation. For FY 2022/23 this limit was approximately $72.5 million, with total annual appropriations subject to this limit being $32.4 million. The Independent Auditor’s Report on the Gann Spending Limit calculation can be viewed in Attachment 4.

Single Audit Report Overview

The Single Audit was required this fiscal year due to the City exceeding the threshold amount of federal grant fund expenditures of $750,000 or more in FY 202 2/23. The City expended approximately $2.9 million.

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The Single Audit Report is provided as Attachment 5 and includes a Report on Internal Controls and Compliance, a Schedule of Expenditures of Federal Awards and Schedule of Audit Findings and Questioned Costs, if any. Generally, findings are areas of improvement for the City when it comes to the internal controls that are designed to manage the risk with which the City’s assets are safeguarded and its finances are accurately reported, which then translates into the proper administration of federal funding.

In summary, the City’s auditors, RAMS, report the following within the Single Audit Report:

 Unmodified opinion as it pertains to both the Financial Statements and to Federal Awards.
 No material weakness or significant deficiencies in internal controls over financial reporting.
 No noncompliance material to financial statements noted.  No material weakness or significant deficiencies in internal controls over major programs

The Single Audit and reporting package has been submitted to the respective agencies, SCO, Caltrans and FAC before the March 31, 2024 deadline.

Other Information

Staff has prepared the ACFR that meets the GFOA’s Certificate of Achievement for Excellence in Financial Reporting requirements and will submit it to the GFOA to determine its eligibility. The GFOA can award this certificate based on meeting certain criteria, which includes publishing 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.

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

FISCAL IMPACTS:

There is no fiscal impact associated with this item.

LEGAL REVIEW BY: Megan Garibaldi, City Attorney

APPROVED BY: Robert Nisbet, City Manager

ATTACHMENTS:

1. Annual Comprehensive Financial Report for June 30, 2023 6 Meeting Date: April 16, 2024

2. Government Auditing Standards Letter

3. Statement of Auditing Standards Letter

4. Independent Accountant’s Report on Gann Spending Limit

5. Single Audit Report for the Year Ended June 30, 2023

6. Presentation

7 ATTACHMENT 1:

Annual Comprehensive Financial Report for June 30, 2023

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10 City of Goleta, California
Annual Comprehensive Financial Report
With Report on Audit
by Independent
Certified Public Accountants
Year Ended June 30, 2023
Prepared by:

Finance Department
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12 INTRODUCTORY SECTION
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14 City of Goleta
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
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Table of Contents
Page

INTRODUCTORY SECTION
Table of Contents .................................................................................................................... i Letter of Transmittal ............................................................................................................... iii Organization Chart ................................................................................................................ xi List of Principal Officials ........................................................................................................ xii

FINANCIAL SECTION
Independent Auditors' Report ................................................................................................ 1 Management's Discussion and Analysis ................................................................................ 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position .............................................................................................. 22 Statement of Activities .................................................................................................... 23 Fund Financial Statements:

Governmental Funds:

Balance Sheet ................................................................................................................ 24 Reconciliation of Governmental Funds-Balance Sheet to the Statement of Net Position ............................................................................................................. 25 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................... 26 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................... 27 Fiduciary Fund:

Statement of Fiduciary Net Position ............................................................................... 28 Statement of Changes in Fiduciary Net Position ............................................................ 29 Notes to the Basic Financial Statements ............................................................................. 30

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

General Fund .................................................................................................................... 67 GTIP Special Revenue Fund ............................................................................................ 68 Coronavirus State & Local Fiscal Recovery Special Revenue Fund ................................ 69 Schedule of Proportionate Share of Net Pension Liability and Related Ratios as of the Measurement Date ........................................................................................... 70 Schedule of Pension Contributions ................................................................................... 71 Schedule of Changes in OPEB Liability and Related Ratios ............................................ 72 Schedule of OPEB Contributions ...................................................................................... 73 15 City of Goleta

Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

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SUPPLEMENTAL INFORMATION SECTION

Nonmajor Governmental Funds - Definitions ......................................................................74 Combining Balance Sheet - Nonmajor Governmental Funds ..........................................78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ...................................................................88 Schedules of Nonmajor Governmental Funds Revenues, Expenditures and Changes in Fund Balances - Budget and Actual .............................................................98

STATISTICAL SECTION

Financial Trends:

Net Position by Component ..............................................................................................152 Changes in Net Position ....................................................................................................153 Fund Balances of Governmental Funds ............................................................................155 Changes in Fund Balances of Governmental Funds ........................................................157 Revenue Capacity:

Assessed Value and Actual Value of Taxable Property ....................................................159 Direct and Overlapping Governments Property Tax Rates ...............................................160 Principal Property Taxpayers ............................................................................................162 Property Tax Levies and Collections .................................................................................163 Revenue and Rates of Transient Occupancy Tax ............................................................164 Principal Transient Occupancy Tax Payers ......................................................................165 Debt Capacity:

Ratios of Outstanding Debt by Type .................................................................................166 Direct and Overlapping Governmental Activities Debt ......................................................167 Computation of Legal Debt Margin ...................................................................................168 Demographic and Economic Information:

Demographic and Economic Statistics ..............................................................................170 Principal Employers ..........................................................................................................171 Operating Information:

Full-time and Part-time City Employees by Function ........................................................172 Operating Indicators by Function ......................................................................................173 Capital Asset Statistics by Function ..................................................................................174 16 CITY COUNCIL

Paula Perotte
Mayor

Luz Reyes-Martín
Mayor Pro Tempore
District 1

Stuart Kasdin
Councilmember

James Kyriaco
Councilmember
District 2

Kyle Richards
Councilmember

CITY MANAGER
Robert Nisbet

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March 27, 2024

To the Honorable Mayor, Councilmembers, and Residents 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, 2023. The report was prepared by the City’s Finance Department in conformance with the principles and standards set forth by the Governmental Accounting Standards Board (GASB) for financial reporting under U.S. Generally Accepted Accounting Principles (GAAP) as they apply to local governments. The report underwent an audit in accordance with generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants.

This report contains management representations regarding the City’s finances.

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 safeguard 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 GAAP. While mindful of the cost-benefit aspect of internal controls, the City prioritizes effective and robust measures to provide reasonable, rather than absolute, assurance that t he financial statements are free from material misstatement. To the best of our knowledge and belief, this report is accurate in all material respects and fairly presents the City’s financial position, ensuring full disclosure for a thorough understanding of the City’s financial activities.

AUDITED FINANCIAL STATEMENTS

The City’s financial statements have been audited by Rogers, Anderson, Malody, & Scott LLP (RAMS), a firm of licensed certified public accountants. The objective of the independent audit is to pr ovide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2023 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 a reasonable basis for rendering an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2023, 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. 17 -iv-

This ACFR has been prepared in accordance with the financial reporting requirements prescribed by GASB Statement No. 34, which introduced a co mprehensive model for financial reporting by state and local governments. GASB 34 requires management to provide a narrative introduction, overview, and analysis in the form of Management’s Discussion and Analysis (MD&A) to accompany the financial statements. This transmittal letter is designed to complement the MD&A by providing additional context and should be read in conjunction. The MD&A immediately follows the independent audit report.

Report Organization:

The report is organized into 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 and an organizational chart, offering readers a contextual understanding of the City’s governance and operational framework.

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

3. The Statistical section includes selected financial an d demographic information generally presented multi-yearly. 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 was 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 32,442. The City is adjacent to the City of Santa Barbara and University of Californi a, Santa Barbara and is approximately 90 miles northwest of Los Angeles.

Form of Government

The City operates under the council-manager form of government. The City Council comprises 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 the administration of all City affairs and implementing 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 the Santa Barbara County Fire Department through the Santa Barbara County Fire Protection District, which has a service area that includes the City of Go leta. 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. On July 1, 2019, the City also assumed to provide direct management and operations of the libraries in the City of Buellton and City of Solvang. On January 1, 2023, the City assumed direct management and operations 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, which includes adopting an annual operating and capital budget prior to July 1
st of each year in conjunction with annual work programs of each department.

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 ca pital budget for the second year is adopted the following year as part of the mid-cycle budget review and is known as the Mid-Cycle Budget. The adopted budget is the foundation for the City of Goleta’s financial planning and control system.

Department appropriation requests are submitted to the City Manager, who then formulates a proposed budget. The proposed budget undergoes public workshops conducted by the City Council and then ultimately adopts a formal budget at a public hearing. The budget is adopted by fund, department, program, and line-item.

The Council regularly reviews the City’s financial activity in relationship to the original budget.

Adjustments are made as necessary to ensure expenditures align with anticipated revenues.

Budgetary control (the level at which expenditures cannot legally exceed the appropriation amount) is managed at the fund and department level with stricter control over capital assets and fund balance categories 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 within departme nts, between programs, and am ong various appropriation units (e.g., salaries and benefits, services and supplies, and capital outlay) within programs, except for special designation or project appropriations.

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

Internal Controls

The City’s management holds the primary res ponsibility for establishi ng and maintaining a comprehensive internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse and ensures the compilation of accurate accounting data necessary for financial statements that conform to GAAP and the standards set by GASB.

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The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reaso nable assurance recognizes that the costs of a control should not exceed the benefits likely to be achieved, and the valuation of costs and benefits requires estimates and judgments by management.

As a recipient of financial resources from State, County, and Federal entities, 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 the City’s management.

MAJOR INITIATIVES AND ACCOMPLISHMENTS

During Fiscal Year 2022/23, the City of Goleta not only met the lingering challenges from the ongoing COVID-19 pandemic and subsequent economic uncertainties but also implemented and completed a range of projects and programs to advance the goals and priorities of the City Council and the community. Our dedicated staff successfully completed numerous work efforts that fully aligned with the City's Vision Statement and the Council's nine Key Initiatives. These accomplishments reflect the City’s unwavering commitment to ensuring the well-being of our community and advancing our shared goals for Goleta's future.

Some of these accomplishments are summarized below:

x Received the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA), with Special Capital Recognition for City's Two-Year Budget Plan for FY 2021/22 and FY 2022/23. This was the City’s third consecutive time in receiving this award and first time receiving Special Capital Recognition.

x 1) Assumed management of the Goleta Community Center with transition on January 1, 2023; 2) Adopted the Goleta Valley Community Center Strategic Plan; 3) Commenced construction of the Seismic Retrofit Project after obtaining an extension to a FEMA Grant, and $3,000,000 in Federal Funding thanks to Congressman Carbajal’s Office.

x Developed and Implemented a Green Fleet Policy.

x Adopted a Polystyrene Foam & Single Use Plastic Reduction Ordinance.

x Adopted the 2023-2031 Housing Element and submitted on schedule to the State Housing and Community Development Department.

x Approved the 332-unit Heritage Ridge project, including 102 affordable units and a new, two-acre public park.

x Provided $600,000 toward the 60-unit permanent supportive housing project known as Buena Tierra that is expected to open in the Fall of 2023.

x Held the City’s first by-district elections in November 2022 and seated a new councilmember (Luz Reyes-Martín) in District 1, and reseated Councilmember James Kyriaco in District 2.

x Updated the City’s new website, improving its look, user interface and functionality. This effort also included the Goleta & Santa Ynez Valley Libraries’ website, which was refreshed to make all content more accessible, navigable, and user-friendly. 20 -vii-

x Finalized the design plans, permits, and rights-of-way requirements for the Ekwill- Fowler, Hollister bridge, and double roundabout project (Project Connect). The rights-of- way requirements necessitated settling several eminent domain lawsuits.

x Responded to major winter storms and successfully submitted Federal Emergency Management Agency (FEMA) claims for $10.7 million in estimated damages.

x Initiated a Street Tree Maintenance Program with an inventory, grid pruning work plan and contract with a new tree service/arborist company.

x Completed Brown Act training for Council and all commissions and committees.

x Adopted the 2023 City of Goleta Annex to the Santa Barbara County Multi-Jurisdictional Hazard Mitigation Plan.

x Completed installation of new play and/or fitness equipment at four neighborhood parks.

x In November 2022, the Goleta citizens approved a 1% Transaction and Use Tax (general sales tax) with 64.39% voting in favor of the tax. This new tax is estimated to generate $10.6 million annually.

ECONOMIC CONDITION AND OUTLOOK

Local Economy

The City of Goleta boasts a diverse tax base comprised of single-family homes, condominiums, and apartments with a mixture of retail, light industrial, manufacturing, and service entities. The City of Goleta significantly contributes to the basic economic activity in the Santa Barbara County South Coast, including education, intellectual services, tourism, retail and manufacturing. Despite the challenges of the COVID-19 pandemic, Goleta has seen a strong recovery, particularly in Transient Occupancy Tax (TOT) and sales tax revenue.

Current economic indicators reveal that the City of Goleta’s core tax revenue streams are not only healthy but also exceed pre-pandemic levels. This is a testament to our robust economic recovery. However, as we enter FY 2023/24, we are mindful of looming economic challenges.

These include persistent inflation, ongoing supply chain disruptions, rising energy and fuel costs, increasing labor expenses, and the implications of Federal Reserve tightening policies. In response to these challenges, particularly the rising costs of building and construction, the City is proactively formulating strategies to manage our finances effectively and sustain our fiscal health. This forward-looking approach ensures that we are well-positioned to navigate these uncertainties while continuing to support the growth and well-being of our community. In addition, beginning January 1, 2024, the City will begin receiving its voter-approved 1% transaction and use tax, which is estimated to add $10.6 million annually to the General Fund.

Revenues from this new source will be reflected in the FY 2023/24 report.

According to the labor market data released by the California Employment Development Department (EDD), Goleta’s annual unemployment rate for the calendar year 2022 was 2.3%, down from 3.9% for 2021. For the same annual 2022 period, the unemployment rate for Santa Barbara County was at 3.5% and California at 4.2%.
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In the tourism sector, TOT revenues for FY 2022/23 generated $13.9 million due to continued elevated average daily rates and occupancy levels. However, this was a 3.2% decrease from FY 2021/22, attributed to a slight downturn from historic highs in average daily rates and occupancy. Looking ahead, TOT revenue is expected to remain flat, influenced by economic uncertainties, including inflation.

Property tax revenues showed stability and growth with an inflation adjustment of 2% and ongoing property transfer activity. The real estate market saw significant price increases during the pandemic as 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 homes to historic highs. The average price for calendar year 2022 was $1.5 million and the median price was $1.4 million. Pre-pandemic, for calendar year 2019, the average price was $937,760 and the median was $898,000. Going forward, it is anticipated that prices and values will remain high, though the high-interest rate environment will slow the pace of real estate transactions, but property values are expected to remain elevated.

Sales tax revenues also experienced slight growth, with the General Fund receiving $8.7 million in FY 2022/23, a 1.8% increase when compared to FY 2021/22. Sales tax is supported by eight major industry groups, with general consumer goods accounting for about 20% of total sales tax revenues. Going forward, sales tax revenue growth is anticipated to slow down in the next fiscal year and remain flat.

In summary, while Goleta’s economic foundation is strong, the City faces a complex fiscal landscape. Elevated costs in building and construction, alongside the potential for economic slowdown and significant expenditure pressures, including capital projects and maintenance needs, necessitate prudent financial planning and budgeting.

Challenges

The City of Goleta, like other government agencies across California, 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 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 the risk of increased funding gaps due to escalating construction costs.

Despite these challenges, the City has historically balanced these issues through the strategic use of contract staffing and services, coupled with the utilization of one-time savings. However, we anticipate continued cost increases. Additionally, revenue uncertainties in future years, along with expected expenditure growth over the next five years, present additional hurdles. The broader economic landscape, marked by inflation and Federal Reserve action, adds another layer of complexity to our financial planning. The City is actively exploring strategies to mitigate these challenges, including evaluating efficiencies in operations and seeking alternative funding sources to help cover the major CIP funding gap. We remain committed to proactive fiscal management to navigate these uncertainties while continuing to serve our community effectively.
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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 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 prepared a long-range financial forecast for the General Fund going out twenty years. The long-range financial forecast is a tool for strategic decision-making, presents a further context for balancing short-term 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 continue as an 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 the 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 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 ensure 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 at least 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 in the next few fiscal years.
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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, 2023, the City had not reached its Article XIIIB spending limitation of $72,487,276.

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) last 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.

That was the 19
th year the City 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 will submit 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.

Acknowledgments

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

24 CitizensofGoleta
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[L
25 -xii-
City of Goleta
List of Principal Officials
Fiscal Year Ended June 30, 2023

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

CITY ATTORNEY
Megan Garibaldi

EXECUTIVE MANAGEMENT
Winnie Cai, Assistant City Attorney
Charlie Ebeling, Public Works Director
Matthew Fore, General Services Director
Kelly Hoover, Community Relations Manager
Peter Imhof, Planning & Environmental Review Director
Jennifer Jennings, Human Resources/Risk Manager
Deborah Lopez, City Clerk
Luke Rioux, Finance Director
Kristine Schmidt, Assistant City Manager
Jaime Valdez, Neighborhood Services Director
Lt. Rich Brittingham, Chief of Police
26 


FINANCIAL SECTION
27 


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Independent Auditor’s Report

To the Honorable City Council
of the City of Goleta
Goleta, California

Report on the Audit of the Financial Statements

Opinions

We have audited the 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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of City of Goleta, as of June 30, 2023, and the respective changes in financial position for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (GAS), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 29 
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Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’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.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 GAAS and GAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and GAS, we:

x Exercise professional judgment and maintain professional skepticism throughout the audit.
x 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. x 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’s internal control.

Accordingly, no such opinion is expressed.
x 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.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’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.

30 
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Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and other required supplementary information, as listed in the table of contents, 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 United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying supplementary information, as listed in the table of contents, are presented for additional analysis and are not required part of the basic financial statements.

The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information Included in the Annual Report

Management is responsible for the other information included in the annual comprehensive financial report (ACFR). The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon.

Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

31 
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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated March 27, 2024 on our consideration of the City’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 solely 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 the effectiveness of internal control over financial reporting or on compliance.

That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
March 27, 2024
32 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

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As management of the City of Goleta (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the City's financial activities for the fiscal year ended June 30, 2023. Readers are encouraged to consider the information presented here in conjunction with additional information provided in the letter of transmittal (in the Introductory Section) and the accompanying basic financial statements and notes, which follow this section.

FINANCIAL HIGHLIGHTS

x At the close of the most recent fiscal year, the City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $265.81 million (net position). Of this amount, $30.73 million is unrestricted and available to meet the City’s ongoing obligations to its residents and creditors. The remaining amount is invested in capital assets or otherwise restricted and, therefore, not immediately available for the City’s obligations.
x The City’s total revenue from all governmental activities equaled $51.2 million, a decrease of $1.5 million or approximately 3.0% compared to $49.7 million from the previous fiscal year. The decrease is primarily related to cannabis business taxes and transient occupancy taxes.
x Cannabis business tax revenues for the city continue to experience volatility. They decreased by $0.72 million, or 41.2%, to $1.02 million in the 2023 fiscal year. In discussions with local operators, cannabis tax revenue activity continues to be impacted by increased competition and oversupply statewide. In addition, distribution operators continued to express issues with the black market across the state and supply and demand being affected by limited access to legalized cannabis. x Transient occupancy tax revenues decreased by $0.45 million, or 3.2%, to $13.89 million in the 2023 fiscal year. The decrease was due to tourism activity (occupancy rates) and average daily rates trending down from the prior year’s historic highs experienced during the pandemic.
x The City’s total expenditures on all programs totaled approximately $51.84 million, an increase of 25.9%, or approximately $10.66 million, compared to the previous fiscal year's $41.18 million. This was mostly due to increases in general government, public safety, and public works spending related to street maintenance projects and capital improvement program projects.
x The General Fund reported an ending fund balance of approximately $39.53 million, an increase of $0.10 million from the $39.42 million ending fund balance of the fiscal year 2022. The increase was due to total revenues exceeding expenditures. The $39.53 million fund balance includes committed funds of $14.18 million, including the 33% contingency reserve; the assigned fund balance of $13.03 million; and $12.3 million remaining as an unassigned fund balance on June 30, 2023.

33 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

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OVERVIEW OF THE FINANCIAL STATEMENTS

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.

Government-wide Financial Statements

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 considered 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 of the City’s basic services are governmental activities. The Statement of Net Position and the Statement of Activities present information about these Governmental activities, including General Government, Public Safety, Public Works, Library, Planning and Environmental Review, and Neighborhood Services. Property Tax, Sales Tax, Transient Occupancy Tax, Franchise Fees, and Cannabis Business Tax finance approximately 65% of these activities. It should be noted that the City does not have business-type activities.

34 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

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Fund Financial Statements

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) Fund, Coronavirus State & Local Fiscal Recovery Fund (SLFRF) 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 year-end 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 fewer financial resources that can be spent in the near future to finance the City’s programs. The reconciliation schedules accompanying the Fund Financial Statements describe the relationship (or difference) between governmental activities (reported in the Statement of Net Position and Statement of Activities) and Governmental Funds.

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. 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 30 of this report.

35 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

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Other Information

Required Supplementary Information

In addition 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 contributions schedule of changes in Other Post-Employment Benefits (OPEB) liability and related ratios, and schedule of OPEB contributions. RSI can be found starting on page 67 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 74 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 151 of this report.

GASB Pronouncements

Additionally, for the year ended June 30, 2023, the financial statements include the adoption of GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs).

The primary objective of this statement is to enhance the relevance and consistency of information about the government’s SBITA activities. This statement establishes a single model for SBITA accounting based on the principle that SBITAs are contracts that convey control of the right to use another party’s (an SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. Under this statement, the City is required to recognize a SBITA liability and a corresponding intangible right-to-use subscription asset. The addition of the right-to-use assets and the associated subscription liabilities did not significantly affect the City’s net position. For additional information, refer to the Notes to the Financial Statements, Note 4 and Note 5.

36 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

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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, 2023, with comparative totals as of June 30, 2022. 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.

Table 1
Summary of Net Position
As of June 30, 2023 and 2022
Governmental Activities
2023 2022
Assets:

Current and other assets 90,249,289 $ 89,469,622 $
Capital assets 209,175,438 205,577,607
Total Assets 299,424,727 295,047,229
Deferred Outflows of Resources:

Pension related 3,640,759 1,799,404
OPEB related 272,889 316,055
Total Deferred Outflows of Resources: 3,913,648 2,115,459 Liabilities:

Current and other liabilities: 17,802,217 12,861,055 Long Term Liabilities:

Due in one year 1,220,509 1,167,604
Due in more than one year 16,232,545 13,393,296
Total Liabilities 35, 255,271 27,421,955
Deferred Inflows of Resources:

Pension related 103,651 878,165
OPEB related 2,164,681 2,418,482
Total Deferred Inflows of Resources 2,268,332 3,296,647 Net Position:

Net investment in capital assets 199,419,212 195,800,347 Restricted 35,667,016 43,035,264
Unrestricted 30,728,544 27,608,475
Total Net Position 265,814,772 $ 266,444,086 $

37 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

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As of June 30, 2023, the City’s net position totaled $265.8 million, a decrease of $629,000 or approximately 0.2% in comparison to the prior fiscal year. The fiscal year beginning net position was restated because the General Fund had a prior period adjustment due to the inclusion of the City’s Section 115 Pension Trust being included as a fiduciary activity rather than a part of the City’s General Fund. The City also had the correction of an error on the government-wide statements related to unavailable revenues. These prior period adjustments can be seen in more detail in Note 13.

The largest portion of net position consisted of the City’s net investment of $199.4 million (75.0%) 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 $4.5 million or 1.5% for a total of $299.4 million and were primarily due to capital asset additions less the annual depreciation/amortization expense at fiscal year-end, which accounted for a $3.6 million net increase.

The City’s total liabilities increased by approximately $10.8 million or 44.2% for a total of $35.3 million. Within this category, the City’s current and other liabilities increased by $7.9 million or

79.9% due to a $4.7 million increase in accounts payable due to the timing of processing fiscal year-end invoices and unearned revenue of $2.2 million, primarily related to the reclassification of Unavailable Revenue for the Coronavirus State and Local Fiscal Recovery funds (SLFRF) to Unearned Revenue. Total long-term liabilities due in more than one year had an increase of $3.7 million or 363.2% due to a significant increase in net pension liability. Additional details on net pension liabilities can be found in Note 6.

The restricted net position decreased by approximately $7.2 million or 16.8% for a total of $35.7 million (13.4% 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 approximately $3.1 million or 11.3% for a total of $30.7 million (11.6% 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, 2023, with comparative totals for the fiscal year ended June 30, 2022.

Generally, it indicates whether the financial health of the City as a whole is better, unchanged, or worse on June 30, 2023, in relation to a year earlier. For the fiscal year ended June 30, 2023, the total net position decreased by $629,000 or 0.2%, which shows the City’s financial health is relatively unchanged from the previous fiscal year.

38 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

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Table 2
Changes in Net Position
Fiscal Year Ended June 30, 2023 and 2022
Governmental Activities
2023 2022
Revenues
Program Revenues:

Charges for services 2,487,999 $ 2,845,654 $
Operating contributions and grants 5,163,774 2,397,223 Capital contributions and grants 4,660,340 5,381,590 General Revenues
Taxes:

Property taxes 8,878,497 8,299,838
Sales and use taxes 10,992,006 10,733,246
Transient lodging tax 13,884,890 14,341,129
Franchise fees 1,693,236 1,577,968
Other taxes 1,460,097 3,437,524
Use of money and property 1,229,802 (314,219)
Other 763,590 1,036,124
Total Revenues 51,214,231 49,736,077
Expenses
General government 10,376,662 7,637,311
Public safety 9,349,732 8,695,216
Public works 22,540,161 16,520,360
Community development - 1,014,887
Community services - 7,051,170
Library 2,588,836 -
Planning & environmental review 4,056,009 -
Neighborhood services 2,650,927 -
Interest on long-term debt 281,218 258,610
Total Expenses 51,843,545 41,177,554
Change in Net Position (629,314) 8,558,523
Beginning Net Position 266,444,086 257,885,563
Ending Net Position 265,814,772$ 266,444,086 $

39 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-12-
Revenues: The City’s total revenues were $51.2 million for the fiscal year ended June 30, 2023, a decrease of approximately $1.5 million or 2.8% when compared to last fiscal year.

Approximately 72% of the City’s revenue comes from some type of tax revenue including property, sales, transient occupancy taxes (TOT) and other taxes totaling $36.9 million this fiscal year. This is a decrease of approximately $1.5 million when compared to the last fiscal year. This decrease is primarily due to cannabis business tax revenues (accounted for in other taxes) decreasing approximately $0.7 million 41.2% when compared to last fiscal year. In addition, transient occupancy tax decreased by $0.5 million or 3.2%. 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 as travel activity surged in fiscal year 2022. As more opportunities to travel to other areas in the 2023 fiscal year, hotel occupancy levels and average daily rates started trending down in the latter half of the fiscal year; however, still elevated when compared to pre-pandemic levels. The other 28% of revenues come from fees charged for services, development impact fees, state, local, and federal grants and contributions, and investment earnings.

Expenses: The total cost of all programs was $51.8 million for the fiscal year ended June 30, 2023, an increase of $10.7 million or 25.9% when compared to last fiscal year. Expenses include a wide range of services such as general government administration, public safety (police protection services), public works, library, planning and environment review, neighborhood services, and interest on long-term debt 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 $6.0 million or 36.4%, primarily related to pavement maintenance projects and capital improvement program spending.

In addition, many vacancies were filled in the Public Works department. It should be noted that the staff has updated its expense categories.

Note: What was previously reported under community development and community services, is now reflected as library, planning and environmental review, and neighborhood services.

Neighborhood services include homelessness program services, emergency services, and parks and recreation services, including the Goleta community center.

40 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-13-
The sources of the City’s major types of revenue and the areas where such resources are used are shown below in the chart below and the chart on the following page.

City’s Major Revenue Sources and Expenses by Type
(See Table 2)

Charges for Services, 5.1%
Operating Contributions
and G rants, 10.2%
Capital Contributions and
Gr a nts , 1 0 .2 %
Property Tax, 15.7%
Sales Tax, 20.4%
Transient Occupancy Tax,

27.2%
Franchise F ees, 3.0%
Other Taxes, 6.5%
Investment Income, -0.6%
Other, 2.3%
Sources of Revenue

41 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-14-
Gener a l Gover nment, 1 8.6 %
Community Development,

2.5%
Community Services, 17.1%
Public Safety, 21.1%
Public Works, 40.1%
Interest on Long-term Debt, 0.6%
Expenses by Type

Governmental Activities

Table 3 presents the cost of each of the City’s major programs, General Government, Public Safety, Public Works, Library, Planning and environmental review, and Neighborhood services 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, 2023
Total Cost of Net Cost of
Services Services
General Government 10,376,662$ (8,727,887)$
Public Safety 9,349,732 (9,052,129)
Public Works 22,540,161 (16,503,433)
Library 2,588,836 (984,930)
Planning & environmental review 4,056,009 (1,748,024) Neighborhood services 2,650,927 (2,233,811)
Interest on long-term debbt 281,218 (281,218)
Totals 51,843,545$ (39,531,432)$

42 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-15-
x General Government expenses comprise approximately 20.0% of the governmental expenses and include City Council, City Manager, City Clerk, City Attorney, Community Relations, Human Resources, Risk Management, General Services (includes IT and Facility and Fleet maintenance), and Finance. Charges for services and other fees partially offset the cost of general government activities.

x Library, Planning and Environmental Review and Neighborhood Services expenses comprise approximately 5.0%, 7.8%, and 5.1%, respectively, of the governmental expenses. Related fees and charges for services partially offset the cost of this program.

Neighborhood Services reflects Homelessness, Community Development Block Grant program, Parks and Recreation, and Goleta Community Center. Planning and Environmental Review reflects activities related to Planning, Building and Safety, and Affordable Housing.

x Public Safety expenses comprise approximately 18.0% of the governmental expenses and reflect the police services contract with the County of Santa Barbara’s Sheriff’s Office.

x Public Works expenses comprise approximately 43.5% 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, parks and open space maintenance, street lighting, traffic operations and maintenance, street maintenance, environmental services and solid waste, and capital improvement activities.

x 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 $72.5 million, a decrease of $4.0 million or 5.2% over the prior fiscal year. The General Fund increased approximately $263,000 or 0.7%. The GTIP Fund experienced a decrease of $2.8 million, or 20.9%, because of developer impact fees collected for the fiscal year, and projects carried over from the prior fiscal year. The Coronavirus State & Local Fiscal Recovery Fund (SLFRF), which has an asset balance of $5.1 million and reflects the total allocation, less recognized expenses, 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 impacts of the COVID-19 pandemic and has programmed those funds towards governmental services and City capital projects. ARPA funds are expected to be fully expensed before December 2024.

43 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-16-
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) increased appropriations to prevent budget overruns, and 3) carry-over budgets for one-time use for capital projects and special projects. The City Council may amend the budget by motion during the fiscal year.

Revenues: Actual revenues of $38.3 million received came higher than the Final Budget by $2.8 million, primarily because of higher tax receipts than anticipated with property tax, sales tax, and transient occupancy tax. Overall actuals revenues increased approximately $740,000, or 2.0%, when compared to the prior fiscal year. The following paragraphs discuss key revenue variances, when compared to the budget and prior fiscal year actuals.

Property tax exceeded budgeted projections by 9.2% and when compared to the prior fiscal year actuals, by 7.8%. 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. Assessed valuation changed by approximately 6.7%. In addition, the property transfer tax revenues from property sales remained elevated above $300,000 for the fiscal year, due to the sale of the Ritz Carlton – Bacara property in November 2022. During the start of the pandemic, mortgage rates dropped to historic lows and the demand for housing remained high with 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%, $1.35 million in calendar year 2022, an increase of 22.73%. Since the Federal Reserve began its rate hikes in March 2022 in response to rapidly rising inflation rates, property transfer activity slowed down during the fiscal year due to increased borrowing costs. However, the median price remained elevated due to low inventory. The median price was at $1.38 million for calendar year 2023, an increase of 2.04%.

Sales tax exceeded budgeted projections by 4.9% and when compared to the prior fiscal year actuals, by 1.8%. While this was a small increase, overall sales tax activity remained flat when adjusted for economic data. During a key sales tax meeting City staff had with our sales tax consultants, staff were informed that sales tax revenues were 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.

Transient occupancy tax (TOT) is the largest General Fund revenue source totaling $13.9 million and surpassing budgeted projections by 6.0%. Despite this positive variance, TOT revenues experienced a 3.2% decline when compared to the previous fiscal year, fiscal year 2021-22, which recorded $14.3 million. This downturn primarily reflects a decrease in average daily rates and occupancy levels, trending down from the prior year’s historic highs, though maintaining a notable 20% increase over pre-pandemic numbers ($11.6 million in fiscal year 2018-19). The peak year for TOT, fiscal year 2021-22, was largely fueled by the drive market, a trend that began to slowdown as air and international travel opportunities resurged. The City receives 12.0% of the total taxable hotel revenue generated within City limits. There are nine hotels operating in Goleta.
44 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-17-

Expenditures: Actual expenditures of $38.2 million were under the Final Budget amounts by $17.4 million, or 31.3% under budget. This favorable variance primarily stems from the fiscal year 2022-23 budget reflecting restored service levels and increasing staff positions to address backlog and deficiencies. Additionally, the new General Services Department was established, a strategic organizational change that consolidated and transferred functions from Public Works which included Facilities Maintenance, Fleet and Vehicle Maintenance and Information Technology from Human Resources. With a programmed budget at increased amounts and timing of filling staff vacancies, less spending activity was experienced across the departments.

In addition, there was continued deferred projects and one-time program spending that was then encumbered for carryover into the next fiscal year.

By the end of the fiscal year, approximately $4.9 million was identified related to unfinished encumbered projects in the operating budget and $7.5 million to capital improvement program projects that will be reappropriated in the following fiscal year. When comparing actuals to the prior fiscal year, overall expenditures increased by $7.1 million or 22.7%.

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 and unanticipated expenditures. All new appropriations get evaluated if one time or ongoing and analyzed against the City’s unassigned fund balance or another reserve category that may be available. Some significant budget appropriations included additional pavement budget of $2.2 million, $1.8 million for the 2023 winter storm emergency response, and $6.4 million related to prior year encumbered carryovers. Additionally, revenues were updated and projected conservatively due to the pandemic and volatility at the time of adopting the original budget.

Adjustments were recommended at mid-year (second quarter) and the third quarter when actual data was known.

Ending Fund Balance : The General Fund ending balance was $39.5 million as of June 30, 2023. This amount was higher than the final budget projection by $21.4 million or higher than $263,000 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 15,049 $
Committed 14,180,140
Assigned 13,033,030
Unassigned 12,303,831
Total Fund Balance 39,532,050$

45 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-18-
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 $11.2 million. Additionally, the City Manager and City Council have approved the continuing designation of unexpended funds of $12.5 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 $359.6 million at the end of fiscal year 2023. After accumulated depreciation, the net book value of these infrastructure improvements totals $209.2 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)
Asset Type
Land 49,305,105 $
Infrastructure and right of way 259,520,930
Construction in progress 40,426,092
Vehicles 1,165,756
Furniture and equipment 1,353,669
Building and improvements 7,728,584
Right to use assets 119,201
Total capital assets 359,619,337
Less depreciation 150,443,899
Capital Assets net of Depreciation 209,175,438$

46 City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
-19-
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, 2023. Additional information on the City of Goleta’s long-term debt can be found in Notes 1B, 5, 6, 7, 8 and 9.

Table 5
Long-Term Debt
Governmental Activities
Compensated absences 857,251$
Successor Agency settlement agreement 1,551,882
Ibank lease payable 9,548,640
OPEB liability 732,603
Net pension liability 4,659,426
Total 17,349,802$

ECONOMIC FACTORS
AND NEXT YEAR’S BUDGET
Economic Factors and Next Year's Budget
The City Council adopts a two-ye
ar budget plan at the beginning of each two-year cycle, formally adopting an annual operating and capital improvement budget prior to July 1 st of each year. The adopted two-year plan includes the operating and capital budgets for the first year.

The budget for the second year represents proposed amounts, serving as a starting point for that fiscal year’s budget discussion. It is updated and adopted in the following year as part of the mid-cycle budget review process.

On June 20, 2023, the City Council adopted is two-year budget plan for fiscal year 2023-24 and 2024-25, which included an structurally balanced budget of $76.2 million for fiscal year 2023-24.

This amount includes $46.5 million related to the General Fund. Structurally balanced means revenues and other sources are projected to cover normal operations and ongoing expenditures.

The budget was updated to maintain current service levels, incorporate directives from the City’s updated Strategic Plan and each departments Annual Work Program, and align with City Council priorities. These priorities were outlined in workshops focused on the new 1% general transaction and use tax, effective January 1, 2024.
47 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-20-
Budget Highlights and Significant Changes

ƒ Revenue from the new Transaction and Use Tax will be received by the City beginning in January 2024. The City will collect six months of revenue during fiscal year 2023-24 (estimated at $5.3 million) and 12 months of revenue during fiscal year 2024-25 (estimated at $10.6 million).
ƒ Addressing homelessness has been stated as one of the highest Council priorities. The budget reflects a General Fund commitment of $850,100 in fiscal year 2023-24 and $857,900 in fiscal year 2024-25 to homelessness programs that meet strategies and objectives in the Homelessness Strategic Plan.
ƒ The Sheriff contract has been budgeted at $10.5 million for fiscal year 2023-24. This is an increase of 11% over the fiscal year 2022-23 negotiated contract of $9.5 million. The City is currently in negotiations with the Sheriff for a long-term contract and it is possible that this amount will increase once the new contract is finalized. Should it increase, an adjustment to the budget will need to be made at mid-year and mid-cycle based on final contract terms.
ƒ The City’s General Fund contribution to the library has been steadily increasing. The General Fund contribution for fiscal year 2023-24 is $808,110. ƒ The City took over the Goleta Valley Community Center in January 2023. The Strategic Plan for the Community Center was approved by Council on April 18, 2023. Over the course of this budget cycle, a decision will have to be made on whether to manage the facility in-house or with a contract facility manager. The General Fund contribution to the Center in fiscal year 2023-24 is $418,300.
ƒ In fiscal year 2021-22 the City acquired approximately 1,350 streetlights from Southern California Edison as part of the LED Street Lighting Project. Ongoing administrative and maintenance costs are currently projected at $537,500 for fiscal year 2023-24, which exceeds the benefit assessment revenues of approximately $305,000. To cover this gap in funding, the General Fund will contribute $35,000 and the Street Lighting Fund will utilize $197,000 of one-time fund balance. Staff will be evaluating the street lighting fund and assessment rates, including its operational budget, and consider re-evaluating the assessment rates or increasing future General Fund contributions for sustainability. ƒ The General Fund contribution to the Capital Improvement Program (CIP) is $1.8 million in fiscal year 2023-24 and projected at $2.3 million in fiscal year 2024-25. ƒ During the fiscal year 2022-23 budget process, 15 new positions were added. All but one of these positions has been filled. Since July 1, 2022, a total of 30 positions (the new positions plus those that became vacant during the year) have been filled. Twelve positions are currently vacant. This budget recommends two new positions: a Facilities and Fleet Coordinator in the General Services Department and an Assistant Planner in the Long-Range Division (Advance Planning) of the Planning and Environmental Services Department.
48 City of Goleta

Management’s Discussion and Analysis
For the Year Ended June 30, 2023

-21-
ƒ The City had historically allocated $100,000 to the City Grants Program. This Program awards small grants to numerous local non-profit organizations that provide public services in ten different Council-approved priority areas. In 2022, the Council elected to increase the amount of this Program to $250,000 per year for fiscal year 2022-23 and fiscal year 2023-24 using ARPA funds. Although these funds have run out for fiscal year 2024-25, this budget recommends supplanting the ARPA funds with City General Fund dollars and maintaining the contribution at $250,000 per year. ƒ Revenue from the Cannabis Tax remains volatile and has been projected at approximately $1.1 million for fiscal year 2023-24, which is an approximately $1 million reduction from the annual $2 million tax revenues the City previously collected.

Looking ahead, Goleta faces challenges including deferred maintenance, capital improvement project funding gaps, and economic uncertainties. Factors such as potential recession and federal monetary policy could impact borrowing costs. Despite these challenges, the City is committed to maintaining sound fiscal management by adapting budget strategies as necessary and ensuring the long-term fiscal health of Goleta and its community through prudent reserves maintenance and strategic revenue enhancements.

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.


49 


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50 City of Goleta

Statement of Net Position
June 30, 2023

The accompanying notes are an integral part of these financial statements. -22-
Governmental Activities
ASSETS:

Cash and investments 82,809,094$
Receivables:

Accounts 4,903,022
Interest 328,202
Loans 382,701
Deposits payable 1,808,221
Prepaid items 18,049
Capital assets:

Non Depreciable:

Land 49,305,105
Rights of way 11,395,313
Construction in progress 40,426,092
Depreciable:

Infrastructure 248,125,617
Vehicles 1,165,756
Furniture and equipment 1,353,669
Buildings and improvements 7,728,584
Right to use lease assets 41,520
Right to use subscription assets 77,681
Accumulated depreciation/amortization (150,443,899)
Total assets 299,424,727

DEFERRED OUTFLOWS OF RESOURCES
Pension related 3,640,759
Other 272,889
Total deferred outflows of resources 3,913,648

LIABILITIES
Accounts payable 9,421,681
Accrued salaries and benefits 603,734
Retentions payable 228,829
Interest payable 104,334
Deposits payable 2,221,751
Unearned revenue 5,221,888
Noncurrent liabilities:

Due within one year 1,220,509
Due in more than one year 10,840,516
OPEB liability 732,603
Net pension liability 4,659,426
Total liabilities 35,255,271

DEFERRED INFLOWS IF RESOURCES
Pension related 103,651
OPEB related 2,164,681
Total deferred inflows of resources 2,268,332

NET POSITION
Net investment in capital assets 199,419,212
Restricted for:

Public works 33,588,459
Library 152,285
Planning & environmental review 1,906,520
Neighborhood services 19,752
Unrestricted 30,728,544
Total net position 265,814,772$

51 City of Goleta

Statement of Activities
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -23-
Net (Expenses)
Revenues and
Changes in Net
Position
Expenses
Charges for
Services
Operating
Contributions and
Grants
Capital
Contributions and
Grants
Governmental
Activities
Governmental activities:

General government 10,376,662$ 111,780$ 1,536,995$ -$ (8,727,887)$ Public safety 9,349,732 - - 297,603 (9,052,129) Public works 22,540,161 1,118,930 765,187 4,152,611 (16,503,433) Library 2,588,836 25,846 1,577,883 177 (984,930) Planning & environmental review 4,056,009 1,124,373 1,183,612 - (1,748,024) Neighborhood services 2,650,927 107,070 100,097 209,949 (2,233,811) Interest on long-term debt 281,218 - - - (281,218) Total governmental activities 51,843,545$ 2,487,999$ 5,163,774$ 4,660,340$ (39,531,432) Taxes:
8,878,497
10,992,006
13,884,890
1,693,236
1,460,097
1,229,802
763,590
38,902,118
(629,314)
266,444,086
265,814,772$
Program Revenues
Franchise fees
General Revenues
Property taxes
Sales and use taxes
Transient lodging tax
Net position, beginning, as restated
Net position, ending
Other taxes
Other general revenues
Use of money and property
Total general revenues
Change in net position

52 City of Goleta

Governmental Funds
Balance Sheet
June 30, 2023

The accompanying notes are an integral part of these financial statements. -24-
Special Revenue Funds
General Fund GTIP
Coronavirus State
& Local Fiscal
Recovery
Other
Governmental
Funds Totals
ASSETS:

Cash and investments 39,009,456$ 10,631,577$ 5,183,990$ 27,984,071$ 82,809,094$ Receivables:

Accounts 3,022,093 - - 1,880,929 4,903,022 Interest 176,555 42,999 - 108,648 328,202 Loans 382,701 - - - 382,701 Deposits 50,065 1,758,156 - - 1,808,221 Prepaid items 15,049 - - 3,000 18,049 Due from other funds 3,260,738 - - - 3,260,738 TOTAL ASSETS 45,916,657$ 12,432,732$ 5,183,990$ 29,976,648$ 93,510,027$

LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES:

LIABILITIES
Accounts payable 3,625,348$ 1,686,437$ 75,000$ 4,034,896$ 9,421,681$ Accrued salaries and benefits 523,590 - - 80,144 603,734 Retentions payable 86,109 - - 142,720 228,829 Deposits payable 2,036,662 - - 185,089 2,221,751 Unearned revenue 112,898 - 5,108,990 - 5,221,888 Due to other funds - - - 3,260,738 3,260,738 TOTAL LIABILITIES 6,384,607 1,686,437 5,183,990 7,703,587 20,958,621

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - 40,000 40,000

TOTAL DEFERRED INFLOWS
OF RESOURCES - - - 40,000 40,000

FUND BALANCES
Nonspendable 15,049 - - 3,000 18,049 Restricted - 10,746,295 - 26,432,603 37,178,898 Committed 14,180,140 - - - 14,180,140 Assigned 13,033,030 - - - 13,033,030 Unassigned 12,303,831 - - (4,202,542) 8,101,289 TOTAL FUND BALANCES (DEFICITS) 39,532,050 10,746,295 - 22,233,061 72,511,406

TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES 45,916,657$ 12,432,732$ 5,183,990$ 29,976,648$ 93,510,027$

53 City of Goleta

Reconciliation of the Governmental Funds – Balance Sheet to the Statement of Net Position
June 30, 2023

The accompanying notes are an integral part of these financial statements. -25-
Total fund balances - governmental funds 72,511,406$
In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation.

Capital assets at historical cost 359,619,337 $
Accumulated depreciation (150,443,899)
Net 209,175,438
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. 40,000
In governmental funds, interest on long-term debt is not recognized until the period in which it matures and is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. (104,334) Long-term liabilities: In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported.

Long-term liablllties relating to governmental activities consist of:

Compensated absences payable (857,251)
Successor Agency settlement agreement (1,551,882)
IBank lease payable (9,548,640)
Lease liability (38,051)
Subscription liability (65,201)
Net OPEB liability (732,603)
Net pension liability (4,659,426)
Total (17,453,054)
In governmental funds, deferred outflows and inflows of resources relating to pensions and OPEB are not reported because they are applicable to future periods.

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

Deferred outflows of resources relating:
to pensions 3,640,759
to OPEB 272,889
Deferred inflows of resources relating:
to pensions (103,651)
to OPEB (2,164,681)
1,645,316
Total net position - governmental activities 265,814,772$

54 City of Goleta

Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -26-
Special Revenue Funds
General Fund GTIP
Coronavirus State
& Local Fiscal
Recovery
Other
Governmental
Funds Totals
REVENUES:

Taxes 32,949,541$ -$ -$ 2,824,726$ 35,774,267$ Franchise fees 1,636,443 - - 1,350,256 2,986,699 Intergovernmental 49,251 - 825,000 6,322,045 7,196,296 Charges for services 1,830,703 - - 19,730 1,850,433 Licenses and permits 549,197 - - - 549,197 Fines and forfeitures 170,039 - - 922 170,961 Use of money and property 1,006,241 261,148 - 655,425 1,922,814 Developer fees - 14,068 - 13,112 27,180 Donations 68,977 - - 50,864 119,841 Other 78,561 - - 232,605 311,166 Special assessments - - - 305,377 305,377 Total revenues 38,338,953 275,216 825,000 11,775,062 51,214,231 EXPENDITURES:

Current:

General government 11,753,629 - 150,000 8,916 11,912,545 Public safety 9,157,530 - - 165,271 9,322,801 Public works 9,267,171 5,443 675,000 6,987,064 16,934,678 Library 369,363 - - 2,084,668 2,454,031 Planning & environmental review 3,717,494 - - 135,164 3,852,658 Neighborhood services 2,240,820 - - 336,516 2,577,336 Capital outlay 1,144,183 3,103,462 - 3,683,395 7,931,040 Debt service:

Principal 228,620 - - - 228,620 Interest 284,434 - - - 284,434 Total expenditures 38,163,244 3,108,905 825,000 13,400,994 55,498,143 Excess of revenues over (under) expenditures 175,709 (2,833,689) - (1,625,932) (4,283,912)

OTHER FINANCING SOURCES (USES)
Transfers in 28,558 - - 213,906 242,464 Transfers out (213,906) - - (28,558) (242,464) Subscription/lease acquisition 119,201 - - - 119,201 Total other financing sources (uses) (66,147) - - 185,348 119,201 Net change in fund balances 109,562 (2,833,689) - (1,440,584) (4,164,711) Fund balances, beginning, as restated 39,422,488 13,579,984 - 23,673,645 76,676,117 Fund balances, ending 39,532,050$ 10,746,295$ -$ 22,233,061$ 72,511,406$

55 City of Goleta

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -27-
Total net change in fund balances - governmental funds (4,164,711)$ Capital assets are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. 3,597,831
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 for the amounts paid). This year, vacation earned exceeded the amounts used by:
(42,038)
In governmental funds, repayments of long-term liabilities are reported as an other financing source.

In the government-wide statements, repayments of long-term liabilities are reported as reductions of liabilities. 1,020,510
In governmental funds, issuance of long-term liabilities are reported as expenditures. In the government-wide statements, issuance of long-term liabilities are reported as additions of liabilities. (119,201)
In governmental funds, interest on long-term debt is recognized in the period that it becomes due. In the government-wide statement of activities, it is recognized in the period that ït is incurred. Inmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period is: 3,216 In governmental funds, OPEB costs are recognized when employer contributions are made.

In the statement of activities, OPEB costs are recognized on the accrual basis. This fiscal year, the difference between accrual-basis OPEB costs and actual employer contribution was: 112,658 In governmental funds, pension costs are recognized when employer contributions are made. In the statement of activities, pension costs are recognized on the accrual basis.

This year, the difference between accrual-basis pension costs and actual employer contributions was: (1,037,579)
Changes in net position - governmental activities (629,314)$

56 City of Goleta

Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023

The accompanying notes are an integral part of these financial statements. -28-
Successor Agency to
the Goleta
Redevelopment
Agency Private-
Purpose Tust Fund
ASSETS:

Cash and investments 872,331$
Receivables:

Interest 3,376
Settlement receivable - City of Goleta 1,551,882
Bond insurance premium 54,536
Restricted assets:

Cash and investments with fiscal agent 900
TOTAL ASSETS 2,483,025

DEFERRED OUTFLOWS OF RESOURCES
Loss on bond refunding 568,650
TOTAL DEFERRED OUTFLOWS OF RESOURCES 568,650
LIABILITIES:

Accrued interest bond payable 38,246
Bonds payable, current portion 315,000
Bonds payable, net of current portion 11,671,966
Unearned revenue 145,647
TOTAL LIABILITIES 12,170,859

NET POSITION (DEFICIT)
Restricted in trust for:

Successor Agency to the Goleta RDA (9,119,184)
Total net position (9,119,184)$

57 City of Goleta

Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -29-
Successor Agency to
the Goleta
Redevelopment Agency
Private- Purpose Tust
Fund

ADDITIONS
Property taxes 1,148,844$
Use of money and property 36,389
Miscellaneous (2,000)
Total additions 1,183,233

DEDUCTIONS
Administration 15,608
Community development 343,153
Distribution to Santa Barbara County 775,941
Debt service:

Interest 433,912
Total deductions 1,568,614
Change in net position (385,381)
Net position (deficit), beginning (8,733,803)
Net position (deficit), ending (9,119,184)$

58 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-30-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the City of Goleta conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

A. Reporting Entity

The City of Goleta (the City) was incorporated February 1, 2002, under the general laws of the State of California. The City operates under the City Council-Manager 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

Government-wide Statements

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. Eliminations 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. Direct 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. Under 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.
59 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-31-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Basis of Presentation (Continued)

Government-wide Statements (Continued)

Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that 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.

Fund 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.

Fund financial statements for the primary government's governmental funds and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and other governmental funds in the aggregate for governmental funds. Fiduciary information includes financial information for the private-purpose trust funds.

Governmental 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. Other revenue items are considered to be measurable and available when cash is received by the government.
60 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-32-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Basis of Presentation (Continued)

Government-wide Statements (Continued)

Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange 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 or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility 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 financial 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.

Noncurrent portions of long-term receivables due to governmental funds are reported on 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, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

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 another financing source rather than as a fund liability.

Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

61 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-33-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Basis of Presentation (Continued)

Fiduciary Funds

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 Net Position. The Statement of Changes in Fiduciary Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which the revenues are earned while expenses are recognized in the period in which the liability is incurred.

C. Fund Classifications

GASB Statement No. 34 defines major funds and requires that the City's major funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column in the Fund Statements as Other Governmental Funds, regardless of their fund-type.

Major funds are defined as funds that have either assets, 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 of the City. The General Fund accounts for activities and services traditionally associated with governments such as police, which are financed primarily through tax- generated revenues and are not accounted for and reported in another fund. The General Fund also accounts for deposits advanced to the City to fund development-related services provided by the City's Planning and Environmental Review Department and Public Works Department.

GTIP Special Revenue Fund - Accounts for traffic development impact fees.

Coronavirus State & Local Fiscal Recovery - Accounts for the funding from the American Rescue Plan Act to support expenditures or losses incurred due to the COVID-19 public health emergency.

Additionally, the City reports the following fund types:

Special Revenue Funds - These 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.

62 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-34-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

C. Fund Classifications (Continued)

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 of the former Agency's net position in accordance with ABx1 26, AB 1484 and SB 107. The Private-Purpose Trust Fund is omitted from the government- wide financial statements.

D Property Taxes

California Constitution Article XIII A limits the combined property tax rate to one percent of a property's assessed valuation. Additional taxes may be imposed with voters' approval. Assessed value is calculated at one hundred percent of a property's fair value, as defined by Article XIII A, and may be increased 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.

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

Secured Unsecured
Valuation/Lien Dates 1-Jan 1-Jan
Levy Dates 1-Jul 1-Jul
Due Dates 1-Nov 1-Aug
February 1 (50%)
Delinquency Dates December 10 (Nov.) 31-Aug
April 10 (Feb.)

63 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-35-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

E. Cash and 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 in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment income 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.

F. 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 $5,000 are capitalized if they have an expected useful life of three years or more. Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, streets, sidewalks, medians, and storm drains.

The City uses the straight-line depreciation method in the government-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 Life
Buildings and improvements 30 to 50 years
Vehicles 5 years
Equipment and furniture 5 to 15 years
Infrastructure:

Pavement 40 years
Sidewalks 50 years
Curbs and gutters 50 years
Bridges 65 years
Hardscape 50 years
Medians 50 years
Parking lots 40 years
Traffic control devices 10 years

64 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-36-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

G. Deferred Outflows and Inflows of Resources

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

In addition to assets, the Statement of Net Position 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 City has two items that qualify for reporting in this category; refer to Notes 7 and 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 of resources is defined as an acquisition of net position by the City that is applicable to a future reporting period. The City has two items that qualify for reporting in this category; refer to Notes 6 and 7 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.

I. 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 virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.

J. Unavailable/Unearned Revenue

Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are recorded as unearned revenue. Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned.

65 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-37-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

K. Pensions

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

L. Other Postemployment Benefits (OPEB)

For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the 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.

M. Fund Balances

Fund balances of the governmental funds are classified as follows:

x 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).

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

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

66 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-38-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

M. Fund Balances (Continued)

x Assigned Fund Balance - represents amounts that the City intends to use for a specific purpose, but that do not meet the criteria to be classified as restricted or committed. Intent may be stipulated by the governing board or by an official or body to which the governing board delegates the authority. Specific amounts that are not restricted or committed in a special revenue, capital projects, debt service, or permanent fund are assigned for purposes in accordance with the nature of their fund type or the fund's primary purpose. Assignments within the general fund convey that the intended use of those amounts is for a specific purpose that is narrower than the general purpose of the City.

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

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

N. Net Position

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

Net position that is net investment in capital assets, consists of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt.

Restricted net position is the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislations. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position.

67 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-39-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

O. Interfund Balances/Internal Balances

Advances to and advances from other funds represent interfund loans in the fund financial statements. Advances between funds are offset by a fund liability or by deferred revenue in the applicable governmental funds to indicate that they are not expendable available financial resources. Any unpaid interest due to lack of funds in the borrowing fund increases the principal owed and is reported in the lending fund as deferred revenue. All other outstanding balances between funds are reported as due to and due from other funds. These are generally repaid within the following fiscal year.

P. Budgetary 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. There was no budget adopted for the Goleta Library Fund for the year ended June 30, 2023. Budgetary control is legally maintained at the fund level for these funds. Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year's budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code. The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval. The City Manager is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control. Supplemental appropriations, which increase appropriations, may be made during the fiscal year. There were no material supplemental appropriations made for the fiscal year ended June 30, 2023. Budget information is presented for the General and budgeted Special Revenue Funds in the fund financial statements. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations and unexpended grant appropriations, lapse at the end of each fiscal year and are re-budgeted for the coming year. Under Article XIIIB 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, 2023, 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.
68 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-40-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Q. Use of Estimates

The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period.

Actual results could differ from those estimates.

NOTE 2 - CASH AND INVESTMENTS

The composition of cash and investments as of June 30, 2023, is as follows:

Cash on hand 24,411$
Deposits with financial institutions 1,400,938
Investments 82,256,976
Total cash and investments 83,682,325$

Cash and investments are classified in the financial statements as shown below, based. on whether or not their use is restricted under the terms of the City's debt instruments or Agency's agreements:

Statement of Net Position:

Cash and investments 82,809,094 $
Fiduciary Funds:

Cash and investments 872,331
Cash and investments with fiscal agent 900
Total cash and investments 83,682,325 $

Governmental Accounting Standards Board (GASB) Statement No. 72, "Fair Value Measurements and Application," provides the framework for measuring fair value. The framework categorizes a fair value hierarch that is based on the valuation inputs used to measure the fair value of the asset. Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity securities are valued using fair value per share for each fund. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs. Securities classified as Level 3 have limited trade information, these securities are priced or using the last trade price or estimated using recent trade prices

69 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-41-
NOTE 2 - CASH AND INVESTMENTS (Continued)

The City has recurring fair value measurements as of June 30, 2023 as shown in the following:

Investments by fair value Total
Quoted Prices in
Active Markets
for Indentical
Assets (Level 1)
Significant
Other
Observable
Inouts (Level 2)
Significant
Unobservable
Inputs
(Level 3)
Negotiable certificates of deposit 4,903,525$ 4,903,525$ -$ -$ PARS 162,791 - 162,791 - Total investments measured at fair value 5,066,316 4,903,525$ 162,791$ -$ Investments measured at amortized cost
Money market funds 35,598,660
LAIF 41,591,100
Held by fiscal agent:

Money market funds 900
Total investments 82,256,976$
Fair Value Measurement Using

A. Investments Authorized bathe California Government Code and the City's Investment Policy

Allowable investment instruments are defined in the California Government Code Section 53600, et seq., as amended. If the Code is further revised to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to these changes, excluding those changes that may be prohibited by this policy. Where 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 next page identifies the investment types that are authorized for the City, including the fiduciary private purpose trust fund, by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

70 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-42-
NOTE 2 - CASH AND INVESTMENTS (Continued)

A. Investments Authorized bathe California Government Code and the City's Investment Policy (Continued)

Investment Types Authorized by Authorized by Maximum Maximum Percentage Maximum Investment State Law Investment Policy Maturity* of Portolio* in One Issuer* Local Agency Bonds No 5 years None 10%
U.S. Treasury Obligations Yes 5 years None None
U.S. Government-Sponsored
Agency Securities Yes 5 years None None
Banker's Acceptances No 180 days 40% 10%
Commercial Paper Yes 180 days 15% 10%
Certificates of Deposit Yes 5 years 30% 10%
Negfltiable Certificates of Deposit No 5 years 30% 10%
Repurchase Agreements No 1 year None 10%
Reverse Repurchase Agreements No 92 days 21% of base value 10% Medium-Term Notes No 5 years 30% 10%
Mutual Funds No N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities No 5 years 20% 10%
County Pooled Investment Funds No N/A None None
Local Agency Investment Fund Yes N/A None 75,000,000 $ JPA Pools {other investment pools) Yes None None None
Passbook Accounts Yes N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive.

Investments of bond 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 of purchase, 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 City to meet all projected cash obligations.

B. Disclosures Relating Interest Rate Risk

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

71 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-43-
NOTE 2 - CASH AND INVESTMENTS (Continued)

C. Disclosures Relating Interest Rate Risk

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:

Investment Type
Carrying
Amount
12 Months
or Less
13-24
Months
25-60
Months
More than
60 Months
Certificates of deposit 4,903,525$ 248,203 $ 3,292,904 $ 1,123,707 $ 238,711.00 $ PARS 162,791 162,791 - - - LAIF 41,591,100 41,591,100 - - - Money market funds 35,598,660 35,598,660 - - - Held by fiscal agent:

Money market funds 900 900 - - - Total 82,256,976$ 77,601,654$ 3,292,904$ 1,123,707$ 238,711.00$ Remaining Maturity (in Months).

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.

Investment Type
Carrying
Amount
Minimum Legal
Rating
Exempt From
Disclosure AAA Not Rated
Certificates of deposit 4,903,525$ N/A - $ - $ 4,903,525$ PARS 162,791 - - 162,791 LAIF 41,591,100 N/A - - 41,591,100 Money market funds 35,598,660 N/A - - 35,598,660 Held by fiscal agent:

Money market funds 900 N/A - - 900 Total 82,256,976 $ - $ - $ 82,256,976$ Rating of Fiscal Year End

D. Custodial Credit Risk

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.

During the fiscal year ended June 30, 2023, 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 more of total City investments. 72 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-44-
NOTE 2 - CASH AND INVESTMENTS (Continued)

D. Custodial Credit Risk (Continued)

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: the California Government Code requires that a financial institution secure deposits made by State or local governmental units by pledging securities In an undivided collateral pool held by a depository regulated under State law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City's deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2023, deposits were not subject to custodial credit risk as they were entirely insured or collateralized with securities held by the City or the City's agent in the City's name.

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

E. Investment in State Investment Pool

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

73 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-45-
NOTE 3 - INTERFUND TRANSACTIONS

Interfund transactions are reported as either loans, services provided, reimbursements, or transfers. Loans are reported as Interfund receivables and payables, as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers among governmental funds are netted and eliminated as part of the reconciliation to the government-wide financial statements.

A. Due From/To Other Funds

Due to and from balances result from the time lag between the dates that Interfund goods and services are provided, or reimbursable expenditures occur, transactions are recorded in the accounting system., and payments between funds are made.

Individual fund interfund receivable and payable balances at June 30, 2023, was as follows:

Fund Due to Due from
Major Governmental Funds:

General Fund 3,260,738$ -$
Nonmajor Governmental Funds:

Measure A Grants Fund - 678,346
County Fire DIF Fund - 277,075
Monarch Butterfly Habitat Management Plan Fund - 1,021,211 RSTP State Grant Fund - 420,350
Local STIP Fund - 4,309
CDBG Fund - 1,189
SSARP Grant Fund - 53,482
LRSP State Grant Fund - 220,140
Housing & Community Development Fund - 136,122 OTS Public Safety Fund - 3,972
TIRCP Grant Fund - 276,844
HMGP Grant Fund - 30,628
Public Administration Facilities DIF Fund - 2,409 Goleta Library Fund - 2,705
Active Transportation Program Fund - 14,755 Federal Transportation Program Fund - 117,201 Total 3,260,738$ 3,260,738$

74 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-46-
NOTE 3 - INTERFUND TRANSACTIONS (Continued)

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 fiscal year ended June 30, 2023, was as follows:

Fund Transfers In Transfers Out
Major Governmental Fund:

General Fund 28,558$ 213,906$
Nonmajor or Governmental Fund:

CDBG Fund - 28,558
Community Center Fund 99,474 -
MBHMP Fund 114,432 -
242,464$ 242,464$

NOTE 4 - CAPITAL ASSETS

Capital assets activity for the fiscal year ended June 30, 2023, was as follows:

Balance
June 30, 2022 Additions Deletions Transfers
Balance
June 30, 2023
Governmental Activities
Nondepreciable capital assets:

Land 48,016,810 $ 974,600 $ - $ 313,695$ 49,305,105$ Right of way 11,395,313 - - - 11,395,313 Construction in progress 33,873,212 7,954,613 - (1,401,733) 40,426,092 Total nondepreciable capital assets 93,285,335 8,929,213 - (1,088,038) 101,126,510 Depreciable capital assets:

Infrastructure 247,037,579 - - 1,088,038 248,125,617 Vehicles 791,649 374,107 - - 1,165,756 Furniture and equipment 1,340,544 13,125 - - 1,353,669 Buildings and improvements 7,728,584 - - - 7,728,584 Right to use lease assets - 41,520 - - 41,520 Right to use subscription assets - 77,681 - - 77,681 Total depreciable capital assets 256,898,356 506,433 - 1,088,038 258,492,827 Less accumulated depreciation/amortization:

Infrastructure 141,313,555 5,534,825 - - 146,848,380 Vehicles 701,177 29,172 - - 730,349 Furniture and equipment 995,534 66,637 - - 1,062,171 Buildings and improvements 1,595,818 186,567 - - 1,782,385 Right to use lease assets - 7,221 - - 7,221 Right to use subscription assets - 13,393 - - 13,393 Total accumulated depreciation/amortization 144,606,084 5,837,815 - - 150,443,899 Net depreciable capital assets 112,292,272 (5,331,382) - 1,088,038 108,048,928 Net capital assets 205,577,607$ 3,597,831$ -$ -$ 209,175,438$

75 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-47-
NOTE 4 - CAPITAL ASSETS (Continued)

Depreciation and amortization expense was charged to function and programs based on their usage of the related assets. The amounts allocated to each function or program were as follows:

Governmental Activities:

General government 190,627 $
Public safety 26,931
Public works 5,603,319
Library 10,647
Neighborhood services 6,291
Total depreciation expense-governmental activities 5,837,815$

NOTE 5 - LONG-TERM LIABILITIES

The following is a summary of long-term liability activities for the fiscal year ended June 30, 2023:

Balance
June 30, 2022 Additions Deletions
Balance
June 30, 2023
Due Within
One Year
Compensated absences 815,213 $ 649,198 $ 607,160 $ 857,251 $ 171,450 $ Successor Agency settlement agreement 2,327,823 - 775,941 1,551,882 775,941 IBank lease payable 9,777,260 - 228,620 9,548,640 234,655 Lease liabilities - 41,520 3,469 38,051 7,567 Subscription liabilities - 77,681 12,480 65,201 30,896 Total 12,920,296 $ 768,399 $ 1,627,670 $ 12,061,025 $ 1,220,509 $

A. Compensated Absences

The City's policies relating to compensated absences are described in Note 1. The liability in the amount of $857,251 at June 30, 2023, 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 Agency Settlement Agreement

On September 24, 2018, the City agreed to a settlement agreement to transfer $6,431,587 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 34179.6. 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.

76 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-48-
NOTE 5 - LONG-TERM LIABILITIES (Continued)

D. IBank Lease Payable

On August 1, 2020, the City entered into a lease financing agreement with the California Infrastructure and Economic Development Bank or the IBank for $10,000,000 at an interest rate of 2.64% to reimburse the City for $10,000,000 of the total acquisition of the City Hall property of $11,500,000. 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 30 years through August 1, 2050. The future lease payments are as follows:

Fiscal Year Ending June 30, Principal Interest Total
2024 234,655 $ 126,042 $ 360,697$
2025 240,850 122,945 363,795
2026 247,209 119,765 366,974
2027 253,735 116,502 370,237
2028 260,434 113,153 373,587
2029-2033 1,409,003 790,194 2,199,197
2034-2038 1,605,074 629,223 2,234,297
2039-2043 1,828,430 445,852 2,274,282
2044-2048 2,082,867 236,964 2,319,831
2049-2051 1,386,383 24,878 1,411,261
Total 9,548,640$ 2,725,518$ 12,274,158 $

E. Lease Liabilities

The City has entered into a lease (as the lessee) for equipment. The lease term range is for 60 months. Monthly payments range from $839 to $2,141 with an interest rate of

3.01%.

Future payments on the total lease liabilities are as follows.

Fiscal Year Ending June 30, Principal Interest Total
2024 7,567 $ 996 $ 8,563$
2025 7,797 766 8,563
2026 8,034 528 8,562
2027 8,279 284 8,563
2028 6,374 48 6,422
Total 38,051$ 2,622$ 40,673$

See note 4 for the net book value of right to use assets acquired through leases.

77 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-49-
NOTE 5 - LONG-TERM LIABILITIES (Continued)

F. Subscription Liabilities

The City has entered into a subscription for the use of software packages. The subscription term is 29 months. Monthly payments range from $2,751 to $2,916 with an interest rate of 22.42%.

Future payments on the total lease liabilities are as follows.

Fiscal Year Ending June 30, Principal Interest Total
2024 30,896 $ 2,120 $ 33,016 $
2025 34,305 692 34,997
Total 65,201$ 2,812 $ 68,013$

See note 4 for the net book value of right to use assets acquired through subscriptions.

NOTE 6 - PENSION PLAN

A. General Information about the Pension Plans

Plan Descriptions

All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in two rate plans (two miscellaneous). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.

Benefits Provided

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full- time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
78 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-50-
NOTE 6 - PENSION PLAN (Continued)

A. General Information about the Pension Plans

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

The Plan’s provisions and benefits in effect at June 30, 2023 are summarized as follows:

Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit vesting schedule 2% @ 55 2% @ 62
Proportion-June 30, 2021 2% @ 55 5 years service
Benefit payments monthly for life monthly for life
Retirement age 50-63 52-67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 7.00% 6.75%
Required employer contribution rates 10.87% + $234,009 7.47% + $37,413 Miscellaneous

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended.

Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2023 were $1,300,825. The actual employer payments of $1,072,458 made to CalPERS by the City during the measurement period ended June 30, 2022 differed from the City’s proportionate share of the employer’s contributions of $1,128,619 by $(56,161), which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

79 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-51-
NOTE 6 - PENSION PLAN (Continued)

B. Net Pension Liability

The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by Entry Age and Service Mortality Rate Table(1) Derived using CalPERS' membership data for all funds
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance
floor in purchasing power applies, 2.30%
thereafter.
(1) The mortality table used was developed based on CaIPERS' specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Long-term Expected Rate of Return

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

80 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-52-
NOTE 6 - PENSION PLAN (Continued)

B. Net Pension Liability (Continued)

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

The expected real rates of return by asset class are as follows:

Asset Class
New Strategic
Allocation Real Return 1,2
Global equity - cap-weighted 30.00% 4.54%
Global equity - non cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

Change of Assumptions

Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long- term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

81 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-53-
NOTE 6 - PENSION PLAN (Continued)

B. Net Pension Liability (Continued)

Discount Rate

The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events

On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from

2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

Pension Plan Fiduciary Net Position

Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
82 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-54-
NOTE 6 - PENSION PLAN (Continued)

C. Proportionate Share of Net Pension Liability

The following table shows the City’s proportionate share of the Plan’s net pension liability over the measurement period.

Proportionate
Share of Total
Pension Liability
Proportionate
Share of
Fiduciary Net
Position
Proportionate
Share of Net
Pension Liability
Balance at: 6/30/2021 (VD) 22,581,952$ 21,575,975 $ 1,005,977 $ Balance at: 6/30/2022 (MD) 26,417,695 21,758,269 4,659,426 Net changes during 2021-22 3,835,743$ 182,294 $ 3,653,449 $ Valuation Date (VD); Measurement Date (MD)
Increase (Decrease)

The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the miscellaneous Plan as of the June 30, 2021 and 2022 measurement dates was as follows:

Miscellaneous
Proportion - June 30, 2021 0.05298%
Proportion - June 30, 2022 0.09958%
Change - Increase (Decrease) 0.04660%

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate

The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:

1% Decrease

5.90%
Current Discount
Rate 6.90%
1% Increase

7.90%
City's proportionate share of
net pension plan liability (asset) 8,260,634$ 4,659,426 $ 1,696,525 $

83 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-55-
NOTE 6 - PENSION PLAN (Continued)

C. Proportionate Share of Net Pension Liability

Amortization of Deferred Outflows and Deferred Inflows of Resources

Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual
earnings on pension
plan investments

5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all
members that are provided with benefits
(active, inactive and retired) as of the
beginning of the measurement period

The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2022 is 3.7 years, which was obtained by dividing the total service years of 574,665 (the sum of remaining service lifetimes of the active employees) by 153,587 (the total number of participants:
active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions

As of the start of the measurement period (July 1, 2021), the City’s net pension liability was $1,005,977. For the measurement period ending June 30, 2022 (the measurement date), the Local Government incurred a pension expense of $2,338,404.

84 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-56-
NOTE 6 - PENSION PLAN (Continued)

D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)

As of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Change of assumptions 477,456 $ - $
Differences between expected and actual experience 93,570 62,669 Net difference between projected and actual earnings on retirement plan investments 853,483 -
Changes in proportion and differences between City
contributions and proportionate share of contributions 77,822 40,982 Adjustment due to differences in proportion 837,603 - City contributions subsequent to the measurement date 1,300,825 - 3,640,759$ 103,651$

The amounts above are net of outflows and inflows recognized in the 2021-22 measurement period expense. Contributions subsequent to the measurement date of $1,300,825 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year
Ending June 30, Amount
2024 779,979 $
2025 616,907
2026 317,378
2027 522,019
2028 -
Thereafter -

E. Payable to the Pension Plan

At June 30, 2023, the City reported a payable of $-0- for the outstanding amount of contributions to the pension plan required for the year then ended.

85 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-57-
NOTE 7 - POSTEMPLOYMENT HEALTH CARE BENEFITS (OPEB)

A. Plan Description

The City provides postemployment health care benefits through the CalPERS cost- sharing multiple employer health care program (PEMHCA) to eligible employees. The City pays the PEMHCA minimum of $149/month for 2022 and $151/month for 2023. To be eligible for postretirement health benefits, employees must complete at least 5 years of continuous service and be a minimum of 50 years of age. The City created a Section 115 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. Employees Covered

As of June 30, 2023, actuarial valuation, the following current and former employees were covered by the benefit terms under the City's Plan:

Active plan members 99
Inactive plan members or beneficiaries currently receiving benefits 13 Inactive plan members entitled to but not yet receiving benefits 12 Total 124

C. Contributions

The City currently finances benefits on a pay-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, 2023, the City did not contribute to the PARS Section 115 Trust Fund.

D. Net OPEB Liability

The City's net OPEB liability was measured as of June 30, 2023 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:

Actuarial Assumptions June 30, 2023 Measurement Date
Actuarial valuation date June 30, 2022
Salary increases Aggregate - 2.75% annually
Merit - CalPERS 2000-2019 Experience Study
Discount rate 5.50% at June 30, 2023
Long-term expected rate
of return on assets
Expected City contributions projected to keep sufficient plan assets to pay al benefits from trust
Mortality, retirement,
disability, termination
CalPERS 2000-2019 Experience Study
Medical trend Non-Medicare - 8.50% through 2024, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non-Kaiser) - 7.50% through 2024 decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 6.25% through 2024 decreasing to an ultimate rate of 3.45% in 2076

86 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-58-
NOTE 7 - POSTEMPLOYMENT HEALTH CARE BENEFITS (OPEB) (Continued)

D. Net OPEB Liability (Continued)

Pre-retirement and post-retirement mortality rates were based on the CalPERS 2000- 2019 experience study. Mortality 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 rate. GASB 75 requires a discount rate that reflects the following:

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

To determine a resulting single (blended) rate, the amount of the plan's projected fiduciary net position (if any) and the amount of projected benefit payments is compared in each period of projected benefit payments. The discount rate used to measure the City's net OPEB liability is based on these requirements and the following information:

Reporting Date
Measurement
Date
Long-Term
Expected Return of
Plan Investments
(if any)
Municipal Bond 20
Year High Grade
Rate Index Discount Rate
June 30, 2023 June 30, 2023 5.50% 3.54% 5.50%
June 30, 2022 June 30, 2022 5.50% 3.54% 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. Changes in the Net OPEB Liability

Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balance at June 30, 2022 935,850 $ 301,224 $ 634,626 $ (Valuation Date June 30, 2022)
Changes recognized for the measurement period:

Service cost 109,252 - 109,252 Interest 56,126 - 56,126 Contributions -employer - 49,607 (49,607) Net investment income - 19,905 (19,905) Administrative expense - (2,111) 2,111 Benefit payments (49,266) (49,266) - Net Changes 116,112 18,135 97,977 Balance at June 30, 2023 1,051,962$ 319,359$ 732,603$ (Measurement Date June 30, 2023)
87 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-59-
NOTE 7 - POSTEMPLOYMENT HEALTH CARE BENEFITS (OPEB) (Continued)

E. Changes in the Net OPEB Liability (Continued)

Sensitivity of the OPEB liability to changes in the discount rate. The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using a disc
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

4.50%
Discount Rate

5.50%
1% Increase

6.50%
Net OPEB Liability 877,667$ 732,603 $ 613,050 $

Sensitivity of the OPEB liability to changes in the healthcare cost trend rates. The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates:

Healthcare
1% Decrease Trend Rate 1% Increase
Net OPEB Liability 578,317$ 732,603 $ 927,446 $

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2023, the City recognized OPEB (income) of $63,051). As of the fiscal year ended June 30, 2023, the City reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual experience 251,996$ 624,809 $ Net difference between projected and actual earnings 20,893 - Changes in assumptions - 1,539,872 272,889$ 2,164,681$

Amounts reported as deferred outflows and deferred inflows of resources will be recognized in OPEB expense as follows:

Fiscal Year Ending June 30, Amount
2024 (214,022)$
2025 (214,022)
2026 (214,020)
2027 (221,891)
2028 (221,212)
Thereafter (806,625)
88 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-60-
NOTE 8 - FUND BALANCES

Nonspendable, Restricted, Committed, Assigned and Unassigned (deficit) fund balances consisted of the following at June 30, 2023:

General Fund
GTIP Special
Revenue Fund
Coronavirus
State & Fiscal
Recovery Special
Revenue Fund
Other
Governmental
Funds
Total
Governmental
Funds
Nonspendable
Prepaid items 15,049$ -$ -$ 3,000$ 18,049$ Restricted
Public works - 10,746,295 - 22,842,164 33,588,459 Library - - - 1,704,167 1,704,167 Planning & environmental
review - - - 1,866,520 1,866,520 Neighborhood services - - - 19,752 19,752 Committed
Public facilities 830,108 - - - 830,108 Capital equipment 791,653 - - - 791,653 Compensated leave 428,625 - - - 428,625 Risk management 200,000 - - - 200,000 Litigation defense 600,000 - - - 600,000 Contingency 11,235,254 - - - 11,235,254 City Hall solar removal 94,500 - - - 94,500 Assigned
CIP Projects 7,521,823 - - - 7,521,823 Encumbrances 4,992,090 - - - 4,992,090 FMV adjustment 519,117 - - - 519,117 Unassigned (deficit) 12,303,831 - - (4,202,542) 8,101,289 Total 39,532,050 $ 10,746,295$ -$ 22,233,061$ 72,511,406$

NOTE 9 - RISK MANAGEMENT

A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement

The City of Goleta is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Self-Insurance Programs of the Authority

Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012- 13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. 89 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-61-
NOTE 9 - RISK MANAGEMENT (Continued)

B. Self-Insurance Programs of the Authority (Continued)

Primary Liability Program

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

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit.

The coverage structure is composed of a combination of pooled self-insurance, reinsurance and excess insurance. Additional information concerning the coverage structure is available on the Authority's website https://cjia.org/coverage/risk-sharing- pools/.

Workers' Compensation Program

Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2022-23 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..

90 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-62-
NOTE 9 - RISK MANAGEMENT (Continued)

C. Purchased Insurance

Pollution Legal Liability 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 property, 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.

Property Insurance

The City of Goleta 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 $39,094,316. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Crime Insurance

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

Earthquake and Flood 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 Non Participant. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

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 2022-23.

NOTE 10 - CONTINGENCIES AND COMMITMENTS

A. Legal

Various claims and 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 of these matters will not have a material adverse effect on the financial condition of the City.
91 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-63-
NOTE 10 - CONTINGENCIES AND COMMITMENTS (Continued)

B. Grant Programs

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

C. Construction and Other Significant Commitments

Revenue Neutrality Commitment to County of Santa Barbara - Mitigation Obligation After the City's incorporation on February 1, 2002, the County of Santa 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.

All encumbrances include carryover budgets from the fiscal year ended June 30, 2022.

Encumbrances as of June 30, 2023, are as shown in the following:

Major Funds :

General Fund 12,513,913 $
GTIP Speclal Revenue Fund 13,428,238
Other Governmental Funds 77,624,359
Total Encumbrances 103,566,510 $
Construction

Listed below are the projects for uncompleted contracts outstanding as of June 30, 2023.

FY 2022-23 Projects 20,233,141$

92 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-64-
NOTE 11 - OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES

Deficit Fund Balances

The following funds reported deficit fund balances at June 30, 2023:

Nonmajor Governmental Funds:

Measure A Grants (833,594)$
County Fire DIF (277,075)
Monarch Butterfly Habitat Management Plan (501,205)
RSTP (420,350)
Local STIP (4,309)
SSARP (53,482)
LSTP (220,140)
Housing & Community Development (83,229)
OTS Public Safety (3,972)
HMGP (1,275,856)
Public Administration Facilities DIF (2,409)
Active Transportation Program (14,755)
Federal Transportation Program (509,346)

Excess Expenditures over Appropriations

The following funds reported excess expenditures over appropriations at June 30, 2023:

Nonmajor Governmental Funds:

SSARP Grant (482) $

NOTE 12 - SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY

On December 29, 2011, the California Supreme Court upheld Assembly Bill XI 26 (the Bill) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City that previously had reported a redevelopment agency (RDA) within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a 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 local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of the City Resolution No. 4420.

After the enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California 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 completion of any unfinished projects that were subject to legally enforceable contractual commitments). 93 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-65-
NOTE 12 - SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY (Continued)

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 of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in 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 of those 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 fund) in the financial statements of the City.

A. Settlement Receivable - City of Goleta

The Agency has a settlement receivable from the City of Goleta with a balance of $1,551,882 as of June 30, 2023. See Note 5(C) for further detail.

B. Long-Term Liabilities

In accordance with the provisions of ABX1 26 (Bill) and the California Supreme Court's decision to uphold the Bill, the obligations of the former redevelopment agency became vested with the funds established for 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 of the 2020 Tax Allocation Refunding Bonds by reducing the interest rate for a net present value of savings of $8,874,835.

The debt of the Successor Agency as of June 30, 2023, is as follows:

Balance
June 30, 2022 Additions Deletions
Balance
June 30, 2023
Due Within
One Year
Tax allocation bonds 11,025,000$ - $ 300,000$ 10,725,000$ 315,000 $ Less deferred amount:

Premium on bonds issued 1,323,777 - 61,811 1,261,966 - Total 12,348,777 $ - $ 361,811$ 11,986,966$ 315,000 $

94 City of Goleta

Notes to the Basic Financial Statements
For the Year Ended June 30, 2023

-66-
NOTE 12 - SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY (Continued)

B. Long-Term Liabilities

Tax Allocation Refunding Bonds 2020

The annual requirements to amortize the Tax Allocation Bonds outstanding as of June 30, 2023, are shown on the following page:

Fiscal Year Ending June 30, Principal Interest Total
2024 315,000$ 458,950$ 773,950$
2025 325,000 443,200 768,200
2026 345,000 426,950 771,950
2027 365,000 409,700 774,700
2028 385,000 391,450 776,450
2029-2033 2,210,000 1,655,400 3,865,400 2034-2038 2,720,000 1,146,600 3,866,600 2039-2043 3,315,000 556,800 3,871,800 2044 745,000 29,800 774,800 Total 10,725,000 $ 5,518,850$ 16,243,850$

NOTE 13 – PRIOR PERIOD ADJUSTMENT

In the current fiscal year, the General Fund had a prior period adjustment due to the inclusion of the City’s Section 115 Trust being included as a fiduciary activity rather than a part of the City’s General Fund. The City also had the correction of an error on the government-wide statements related to unavailable revenues reclassed to unearned revenue. The effect on financial statements was as follows:

General Fund
Fund balance, beginning, as previously reported 39,268,940$ Section 115 Pension Trust reclassification 153,548
Fund balance, beginning, as restated 39,422,488$

Governmental activities

Net position, beginning, as previously reported 269,257,533$ Unavailable revenue adjustment (2,966,995)
Section 115 Pension Trust reclassification 153,548
Net position, beginning, as restated 266,444,086 $

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REQUIRED SUPPLEMENTARY INFORMATION SECTION
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98 City of Goleta

General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
For the Year Ended June 30, 2023

-67-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Taxes 31,979,100 $ 31,047,887$ 32,949,541$ 1,901,654$ Franchise fees 1,408,900 1,592,100 1,636,443 44,343 Intergovernmental 56,000 56,000 49,251 (6,749) Charges for services 1,561,200 1,885,700 1,830,703 (54,997) Licenses and permits 452,100 452,100 549,197 97,097 Fine and forfeitures 141,000 141,000 170,039 29,039 Use of money and property 334,000 334,000 1,006,241 672,241 Donations 65,000 64,991 68,977 3,986 Other - 14,231 78,561 64,330 Total revenues 35,997,300 35,588,009 38,338,953 2,750,944

EXPENDITURES
Current:

General government 11,634,871 13,585,229 11,753,629 1,831,600 Public safety 9,766,000 9,766,000 9,157,530 608,470 Public works 8,098,300 15,385,619 9,267,171 6,118,448 Library 434,600 434,591 369,363 65,228 Planning & environmental review 4,293,800 4,954,651 3,717,494 1,237,157 Neighborhood services 2,074,600 2,627,159 2,240,820 386,339 Capital outlay 7,260,078 8,316,733 1,144,183 7,172,550 Debt service:

Principal 228,620 228,620 228,620 - Interest 284,434 284,434 284,434 - Total expenditures 44,075,303 55,583,036 38,163,244 17,419,792 Excess of revenues over (under) expenditures (8,078,003) (19,995,027) 175,709 20,170,736 O
THER FINANCING SOURCES (USES):

Transfers in 43,800 43,800 28,558 (15,242) Transfers out - (99,474) (213,906) (114,432) Subscription/lease acquisition - 119,201 119,201 - Total other financing sources (uses) 43,800 63,527 (66,147) (129,674) Net change in fund balance (8,034,203) (19,931,500) 109,562 20,041,062 Fund balance, beginning 39,422,488 39,422,488 39,422,488 - Fund balance, ending 31,388,285$ 19,490,988$ 39,532,050$ 20,041,062$ Budgeted Amounts

99 City of Goleta

GTIP Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
For the Year Ended June 30, 2023

-68-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 60,000$ 60,000$ 261,148$ 201,148$ Developer fees 1,956,700 1,956,700 14,068 (1,942,632) Total revenues 2,016,700 2,016,700 275,216 (1,741,484)

EXPENDITURES
Current:

Public works 110,000 110,565 5,443 105,122 Capital outlay 3,181,416 16,531,700 3,103,462 13,428,238 Total expenditures 3,291,416 16,642,265 3,108,905 13,533,360 Net change in fund balance (1,274,716) (14,625,565) (2,833,689) 11,791,876 Fund balance, beginning 13,579,984 13,579,984 13,579,984 - Fund balance, ending 12,305,268$ (1,045,581)$ 10,746,295$ 11,791,876$ Budgeted Amounts

100
City of Goleta

Coronavirus State & Local Fiscal Recovery Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
For the Year Ended June 30, 2023

-69-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 2,966,995$ 5,933,990$ 825,000$ (5,108,990)$ Total revenues 2,966,995 5,933,990 825,000 (5,108,990)

EXPENDITURES
Current:

General government 150,000 150,000 150,000 - Public works 5,633,990 5,633,990 675,000 4,958,990 Total expenditures 5,783,990 5,783,990 825,000 4,958,990 Net change in fund balance (2,816,995) 150,000 - (150,000) Fund balance, beginning - - - - Fund balance, ending (2,816,995)$ 150,000$ -$ (150,000)$ Budgeted Amounts

101
City of Goleta

Schedule of Proportionate Share of Net Pension Liability and Related Ratios as of the Measurement Date
Last Ten Years

-70-
The following table provides required supplementary information regarding the City's Pension Plan.

Measurement
Date
Employer's
Proportion of the
Collective Net
Pension Liability1
Employer's
Proportionate Share
of the Collective Net
Pension Liability Covered Payroll
Employer's
Proportionate Share
of the Collective Net
Pension Liability as a
percentage of the
Covered Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of the
Total Pension
Liability
6/30/2014 0.02586% 1,609,229 $ 4,819,034 $ 33.39% 79.82% 6/30/2015 0.02318% 1,590,804 4,778,639 33.29% 78.40% 6/30/2016 0.02565% 2,219,286 5,180,046 42.84% 74.06% 6/30/2017 0.02772% 2,749,352 5,464,417 50.31% 73.31% 6/30/2018 0.02760% 2,659,577 5,897,673 45.10% 75.26% 6/30/2019 0.02990% 3,064,002 6,613,453 46.33% 75.26% 6/30/2020 0.03250% 3,536,142 7,514,719 47.06% 75.10% 6/30/2021 0.01860% 1,005,978 7,906,471 12.72% 88.29% 6/30/2022 0.09958% 4,659,426 8,645,140 53.90% 82.36% * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only nine years are presented. 1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.

102
City of Goleta

Schedule of Pension Contributions
Last Ten Years

-71-
Fiscal Year
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess) Covered Payroll
Contributions as
a Percentage of
Covered Payroll
6/30/2015 528,634$ (528,634) $ - $ 4,778,639$ 11.06% 6/30/2016 491,157 (491,157) - 5,180,046 9.48% 6/30/2017 535,490 (535,490) - 5,464,417 9.80% 6/30/2018 591,252 (591,252) - 5,897,673 10.03% 6/30/2019 696,782 (696,782) - 6,613,453 10.54% 6/30/2020 843,932 (843,932) - 7,514,719 11.23% 6/30/2021 975,305 (975,305) - 7,906,471 12.34% 6/30/2022 1,072,458 (1,072,458) - 8,645,140 12.41% 6/30/2023 1,300,825 (1,300,825) - 10,758,400 12.09% Notes to Schedule:

Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to

7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public A
gency Pool.
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only nine years are presented.

103
City of Goleta

Schedule of Changes in the OPEB Liability and Related Ratios Last Ten Years

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Measurement Period 2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 109,252$ 328,789$ 319,989$ 348,492$ 318,822$ 290,904$ Interest on the total OPEB liability 56,126 69,274 54,866 84,042 67,773 48,449 Difference between expected and actual experience - (516,973) (16,631) 33,392 43,923 223,452 Changes in assumptions - (1,679,171) - (237,684) - - Changes in benefit terms - - - - - - Benefit payments (49,266) (32,268) (30,499) (30,876) (16,745) (27,438) Net change in total OPEB Liability 116,112 (1,830,349) 327,725 197,366 413,773 535,367 Total OPEB liability - beginning 935,850 2,766,199 2,438,474 2,241,108 1,827,335 1,291,968 Total OPEB liability - ending [A] 1,051,962$ 935,850$ 2,766,199$ 2,438,474$ 2,241,108$ 1,827,335$ Plan Fiduciary Net Position
Contributions - employer 49,607$ 365,823$ -$ -$ -$ -$ Contributions - employee - - - - - - Net Investment income (loss) 19,905 (32,007) - - - - Administrative/trustee expenses (2,111) (324) - - - - Benefit payments (49,266) (32,268) - - - - Net change in plan fiduciary net position 18,135 301,224 - - - - Total plan fiduciary net position - beginning 301,224 - - - - - Total plan fiduciary net position - ending [B] 319,359$ 301,224$ -$ -$ -$ -$ Net OPEB Liability - ([A]-[B]) 732,603$ 634,626$ 2,766,199$ 2,438,474$ 2,241,108$ 1,827,335$ Plan fiduciary net position as a percentage of the
total OPEB liability 30.36% 32.19% 0.00% 0.00% 0.00% 0.00% Total net OPEB liability as a percentage
of covered payroll 12,013,770$ 10,242,422$ 8,897,999$ 6,733,325$ 6,923,683$ 6,317,404$ *Fiscal year 2018 was the 1st year of implementation, therefore, only six years are presented.

Notes to Schedule:

Benefits are not based on a measure of pay, therefore covered payroll is used For the fiscal year ended June 30, 2023:

There were no changes in assumptions or benefit terms since the last measurement date.

104
City of Goleta

Schedule of OPEB Contributions
Last Ten Years

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The following table provides required supplementary information regarding the City's OPEB.

Fiscal year
Actuarially
Determined
Contribution (ADC)
Contributions in
relation to the ADC
Contribution
deficiency (excess) Covered payroll
Contributions as a
percentage of
covered payroll
June 30, 2022 169,638$ (32,268)$ 137,370$ 10,242,422$ 0.32% June 30, 2023 169,638 (49,607) 120,031 12,013,770 0.41% Notes to Schedule:

Through June 30, 2021, the plan was not administered through a qualified trust. Therefore, there was no Actuarially Determined Contribution (ADC). Benefit payments of $30,499, $30,876, $16,745 and $27,438 were made on a pay-as-you-go-basis for the fiscal years ended June 30, 2021, 2020, 2019, and 2018 respectively.

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

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Supplementary Information Section
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108
City of Goleta

Nonmajor Governmental Funds Special Revenue Funds
For the Year Ended June 30, 2023

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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, 2106, 2107, and 2 107.5, 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 A Grants - 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 Program -This fund is used to account for receipts and expenditures relating to the City's solid waste program.

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

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

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

Library Facilities DIF - 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 Program - This fund is to account for California Planning Grants Program Award.
109
City of Goleta

Nonmajor Governmental Funds Special Revenue Funds
For the Year Ended June 30, 2023

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Environmental Programs - 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.

Long Range Development 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 (COPS) grant program.

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

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

RSTP - 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 governments for use in various City 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 Agreement - This fund is 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 - This fund is used to account for state grant to fund library services in the Isla Vista area.

CDBG - This fund is used to account for revenues and expenditures related to the Community Development Block Grant program. These funds are received from the Federal Department of Housing and Urban Development and must be expended exclusively on programs for low and moderate income individuals/families.

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

110
City of Goleta

Nonmajor Governmental Funds Special Revenue Funds
For the Year Ended June 30, 2023

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SSARP - 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 benefit assessment to fund street lighting.

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

LSTP - 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 - This fund is used to account for funding from the Housing Related Parks Program to assist with new residential housing to lower-income households.

Cal OES - This fund is used to account for funding through the California Office of Emergency Services for emergency preparedness, response, recovery, and homeland security activities.

FHWA – FEMA Reimbursement - This fund is used to account for the Federal Highway Administration Emergency Relief Funds used for repair are construction of federal-aid highways on federal lands which have suffered serious damage as a result of natural disasters.

OTS Public Safety - This fund is used to account for public safety grants for special traffic and law enforcement services.

OBF – Southern California Edison - This fund is used to account for special funding from the Southern California Edison Can-Bill Financing program far the street lighting project.

Certified Access Specialist - This fund is used to account for fees collected to increase disability access and compliance with construction-related accessibility requirements. These fees are set by Senate Bill 1186.

TIRCP - This fund for the Transit and Intercity Rail Capital Program (TIRCP) was created by Senate Bill (SB) 862 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 - This fund far the Hazard Mitigation Grant Program is used for seismic retrofit to meet ADA standards.

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

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112
City of Goleta

Nonmajor Governmental Funds Special Revenue Funds
For the Year Ended June 30, 2023

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County 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 and 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.

County Per Capita - Solvang Library - This fund is used for Funds received from the County of Santa Barbara and 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 Administration Facilities DIF - This fund accounts for the public administration facilities development impact fees.

Community Center - This fund is used to account for the operations of the City’s Community Center

Goleta Library - This fund is used to account for the operations of the City’s main library, excluding development impact fees.

Affordable Housing DIF - This fund is used to account for the affordable housing development impact fees.

Park DIF - Accounts for park development impact fees.

Active Transportation Program - Accounts for State grant funds for transportation projects. 
Federal Transportation Program - Accounts for federal grant funds for transportation projects.

113
City of Goleta

Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023

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Special Revenue Funds
Gas Tax Transportation
Road
Maintenance and
Rehabilitation Measure A Measure A Grants
ASSETS:

Cash and investments 1,707,390 $ 249,138 $ 1,004,488 $ 5,798,491 $ - $ Receivables:

Accounts 70,948 2,731 127,860 168,203 - Interest 6,933 989 4,008 22,981 - Prepaid items - - - - - TOTAL ASSETS 1,785,271$ 252,858$ 1,136,356$ 5,989,675$ -$

LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES:

LIABILITIES
Accounts payable 572,372$ -$ 381,581$ 404,738$ 152,095$ Accrued salaries and benefits - - - - - Retentions payable 64,582 - 43,055 27,564 3,153 Deposits payable - - - - - Due to other funds - - - - 678,346 TOTAL LIABILITIES 636,954 - 424,636 432,302 833,594

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - -

TOTAL DEFERRED INFLOWS - - - - -

OF RESOURCES

FUND BALANCES (DEFICIT)
Nonspendable - - - - - Restricted 1,148,317 252,858 711,720 5,557,373 - Unassigned - - - - (833,594) TOTAL FUND BALANCES 1,148,317 252,858 711,720 5,557,373 (833,594) TOTAL LIABILITIES AND FUND BALANCES 1,785,271$ 252,858$ 1,136,356$ 5,989,675$ -$ 114

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Special Revenue Funds
Solid Waste
Program
Public Saftey
Donations
County Fire
DIF
Library Facilities
DIF
Sheriff Facilities
DIF Housing In-Lieu
Storm Drain
DIF
1,596,369$ 11,748 $ - $ 194,418$ 141,849 $ 1,246,282 $ 514,362 $ 135,077 - - - - - - 6,674 - - 838 570 5,075 2,137 146 - - - - - - 1,738,266$ 11,748 $ - $ 195,256$ 142,419 $ 1,251,357 $ 516,499 $ 129,129$ - $ - $ 27,377$ - $ - $ 235 $ 15,769 - - - - - - - - - - - - - - - - - - - - - - 277,075 - - - - 144,898 - 277,075 27,377 - - 235 - - - - - - - - - - - - - - 146 - - - - - - 1,593,222 11,748 - 167,879 142,419 1,251,357 516,264 - - (277,075) - - - - 1,593,368 11,748 (277,075) 167,879 142,419 1,251,357 516,264 1,738,266$ 11,748$ -$ 195,256$ 142,419$ 1,251,357$ 516,499$

115
City of Goleta

Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023 Continued

-80-
Special Revenue Funds
Planning Grants
Program
Environmental
Programs Fire Facilities DIF
Long Range
Development
Plan Public Safety
ASSETS:

Cash and investments -$ 174,082$ 3,438,361$ 56,429$ -$ Receivables:

Accounts - - - - - Interest - 700 13,821 - - Prepaid items - - - - - TOTAL ASSETS -$ 174,782$ 3,452,182$ 56,429$ -$

LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES:

LIABILITIES
Accounts payable -$ -$ -$ 12,803$ -$ Accrued salaries and benefits - - - - - Retentions payable - - - - - Deposits payable - - - - - Due to other funds - - - - - TOTAL LIABILITIES - - - 12,803 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - -

TOTAL DEFERRED INFLOWS - - - - -

OF RESOURCES

FUND BALANCES (DEFICIT)
Nonspendable - - - - - Restricted - 174,782 3,452,182 43,626 - Unassigned - - - - - TOTAL FUND BALANCES - 174,782 3,452,182 43,626 - TOTAL LIABILITIES AND FUND BALANCES -$ 174,782$ 3,452,182$ 56,429$ -$

116

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Special Revenue Funds
Monarch Butterfly
Habitat
Management
Plan
Solid Waste
Recycling
RSTP State
Grant
Comstock Plover
Endowment
Miscellaneous
Grants Local STIP
Developer
Agreement
-$ 67,650$ - $ 151,870$ 153,547$ -$ 615,163$ 684,205 - - - 3,809 - - - - - 604 - - - - - - - - - - 684,205$ 67,650$ -$ 152,474$ 157,356$ -$ 615,163$ 164,199$ -$ -$ -$ 144,809$ -$ -$ - - - - - - - - - - - 4,366 - - - - - 150,500 - - - 1,021,211 - 420,350 - - 4,309 - 1,185,410 - 420,350 150,500 149,175 4,309 - - - - - - - - - - - - - - - - - - - - - - - 67,650 - 1,974 8,181 - 615,163 (501,205) - (420,350) - - (4,309) - (501,205) 67,650 (420,350) 1,974 8,181 (4,309) 615,163 684,205$ 67,650$ -$ 152,474$ 157,356$ -$ 615,163$

117
City of Goleta

Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023 Continued

-82-
Special Revenue Funds
Bicycle
Pedestrian DIF Isla Vista Library CDBG HISP SSARP
ASSETS:

Cash and investments 223,509 $ 3,439 $ - $ 5,636 $ - $ Receivables:

Accounts - - 19,774 - - Interest 898 - - - - Prepaid items - - - - - TOTAL ASSETS 224,407 $ 3,439 $ 19,774 $ 5,636 $ - $

LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES:

LIABILITIES
Accounts payable - $ 161 $ 18,585$ - $ - $ Accrued salaries and benefits - 3,278 - - - Retentions payable - - - - - Deposits payable - - - - - Due to other funds - - 1,189 - 53,482 TOTAL LIABILITIES - 3,439 19,774 - 53,482

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - -

TOTAL DEFERRED INFLOWS - - - - -

OF RESOURCES

FUND BALANCES (DEFICIT)
Nonspendable - - - - - Restricted 224,407 - - 5,636 - Unassigned - - - - (53,482) TOTAL FUND BALANCES 224,407 - - 5,636 (53,482) TOTAL LIABILITIES AND FUND BALANCES 224,407$ 3,439$ 19,774$ 5,636$ -$

118

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Special Revenue Funds
Street Lighting PEG LTSP
Housing &
Community
Development Cal OES

FHWA - FEMA
Reimbursement
OTS Public
Safety
273,368$ 223,433 $ - $ - $ 19,752$ 58,107 $ - $ - 13,595 - 55,143 - - - 1,182 880 - - - - - - - - - - - - 274,550$ 237,908 $ - $ 55,143$ 19,752 $ 58,107 $ - $ 4,028$ - $ - $ 2,250 $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - 220,140 136,122 - - 3,972 4,028 - 220,140 138,372 - - 3,972 - - - - - - - - - - - - - - - - - - - - - 270,522 237,908 - - 19,752 58,107 - - - (220,140) (83,229) - - (3,972) 270,522 237,908 (220,140) (83,229) 19,752 58,107 (3,972) 274,550$ 237,908$ -$ 55,143$ 19,752$ 58,107$ -$

119
City of Goleta

Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023 Continued

-84-
Special Revenue Funds
OBF - Southern
California Edison
Certified Access
Specialist TIRCP HMGP Library Services
ASSETS:

Cash and investments 128,210 $ 35,609 $ - $ - $ 686,021$ Receivables:

Accounts - - 338,556 - 220,980 Interest - 141 - - 2,881 Prepaid items - - - - - TOTAL ASSETS 128,210 $ 35,750 $ 338,556 $ - $ 909,882$

LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES:

LIABILITIES
Accounts payable - $ - $ 61,268$ 1,245,228$ 6,100 $ Accrued salaries and benefits - - - - 15,057 Retentions payable - - - - - Deposits payable - 34,589 - - - Due to other funds - - 276,844 30,628 - TOTAL LIABILITIES - 34,589 338,112 1,275,856 21,157

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - -

TOTAL DEFERRED INFLOWS - - - - -

OF RESOURCES

FUND BALANCES (DEFICIT)
Nonspendable - - - - - Restricted 128,210 1,161 444 - 888,725 Unassigned - - - (1,275,856) - TOTAL FUND BALANCES 128,210 1,161 444 (1,275,856) 888,725 TOTAL LIABILITIES AND FUND BALANCES 128,210$ 35,750$ 338,556$ -$ 909,882$

120

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Special Revenue Funds
County Per
Capita - Goleta
Library Buellton Library
County Per
Capita - Buellton
Library Solvang Library
County Per
Capita - Solvang
Library
Miscellaneous
Grants Library
Public
Administration
Facilities DIF
225,773$ 32,417 $ 222,015 $ 9,566 $ 181,323$ 35,823 $ - $ - - - 48 - - - 1,191 191 920 68 807 - - - 34 - 35 - - - 226,964$ 32,642 $ 222,935 $ 9,717 $ 182,130$ 35,823 $ - $ 1,114$ - $ 12,452$ - $ 11,562$ 1,000 $ - $ 19,458 7,311 - 9,717 - - - - - - - - - - - - - - - - - - - - - - - 2,409 20,572 7,311 12,452 9,717 11,562 1,000 2,409
- - - - - - - - - - - - - - - 34 - 35 - - - 206,392 25,297 210,483 - 170,568 34,823 - - - - (35) - - (2,409) 206,392 25,331 210,483 - 170,568 34,823 (2,409) 226,964$ 32,642$ 222,935$ 9,717$ 182,130$ 35,823$ -$

121
City of Goleta

Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023 Continued

-86-
Special Revenue Funds
Community
Center Goleta Library
Affordable
Housing DIF Park DIF
Active
Transportation
Program
ASSETS:

Cash and investments 19,749 $ - $ 6,333$ 8,472,351$ -$ Receivables:

Accounts - - - - 40,000 Interest - - 25 34,134 - Prepaid items 80 2,705 - - - TOTAL ASSETS 19,829$ 2,705$ 6,358$ 8,506,485$ 40,000$

LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES:

LIABILITIES
Accounts payable 10,275$ -$ -$ 279,390$ -$ Accrued salaries and benefits 9,554 - - - - Retentions payable - - - - - Deposits payable - - - - - Due to other funds - 2,705 - - 14,755 TOTAL LIABILITIES 19,829 2,705 - 279,390 14,755

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - 40,000 TOTAL DEFERRED INFLOWS - - - - 40,000

OF RESOURCES

FUND BALANCES (DEFICIT)
Nonspendable 80 2,705 - - - Restricted - - 6,358 8,227,095 - Unassigned (80) (2,705) - - (14,755) TOTAL FUND BALANCES - - 6,358 8,227,095 (14,755) TOTAL LIABILITIES AND FUND BALANCES 19,829$ 2,705$ 6,358$ 8,506,485$ 40,000$ 122

-87-
Special Revenue
Funds
Federal
Transportation
Program
Total Nonmajor
Governmental
Funds
-$ 27,984,071$
- 1,880,929
- 108,648
- 3,000
-$ 29,976,648
392,145$ 4,034,896 $
- 80,144
- 142,720
- 185,089
117,201 3,260,738
509,346 7,703,587
- 40,000
- 40,000
- 3,000
- 26,432,603
(509,346) (4,202,542)
(509,346) 22,233,061
-$ 29,976,648$
123
City of Goleta

Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2023

-88-
Special Revenue Funds
Gas Tax Transportation
Road
Maintenance and
Rehabilitation Measure A
Measure A
Grants
REVENUES:

Taxes - $ - $ - $ 2,265,948$ - $ Franchise fees - - - - - Intergovernmental 812,596 35,762 729,671 - - Charges for services - - - - - Fines and forfeitures - - - - - Use of money and property 43,796 4,479 23,541 111,016 - Developer fees - - - - - Donations - - - - - Other - - - - - Special assessments - - - - - Total revenues 856,392 40,241 753,212 2,376,964 - EXPENDITURES:

Current:

General government - - - - - Public safety - - - - - Public works 1,487,532 - 1,026,433 1,281,981 - Library - - - - - Planning & environmental review - - - - - Neighborhood services - - - - - Capital outlay - - - 141,900 242,963 Total expenditures 1,487,532 - 1,026,433 1,423,881 242,963 Excess of revenues over (under) expenditures (631,140) 40,241 (273,221) 953,083 (242,963) OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - Net change in fund balances (631,140) 40,241 (273,221) 953,083 (242,963) Fund balances (deficit), beginning 1,779,457 212,617 984,941 4,604,290 (590,631) Fund balances (deficit), ending 1,148,317$ 252,858$ 711,720$ 5,557,373$ (833,594)$

124

-89-
Special Revenue Funds
Solid Waste
Program
Public Saftey
Donations County Fire DIF
Library Facilities
DIF
Sheriff Facilities
DIF Housing In-Lieu Storm Drain DIF
-$ - $ - $ - $ - $ - $ - $ 1,293,463 - - - - - - - - - - - - - 10,291 - - - - - - - - - - - - - 35,956 (17,870) - 4,837 2,917 26,356 8,255 - - - 177 - - 2,319 - - - - - - - 232,605 - - - - - - - - - - - - - 1,572,315 (17,870) - 5,014 2,917 26,356 10,574 - - - - - - - - - - - - - - 1,512,280 - - - - - 26,413 - - - 57,854 - - - - - - - - 25,000 - - - - - - - - - - 151,511 - - - - 1,512,280 - 151,511 57,854 - 25,000 26,413 60,035 (17,870) (151,511) (52,840) 2,917 1,356 (15,839) - - - - - - - - - - - - - - - - - - - - - 60,035 (17,870) (151,511) (52,840) 2,917 1,356 (15,839) 1,533,333 29,618 (125,564) 220,719 139,502 1,250,001 532,103 1,
593,368$ 11,748$ (277,075)$ 167,879$ 142,419$ 1,251,357$ 516,264$

125
City of Goleta

Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2023 Continued

-90-
Special Revenue Funds
Planning Grants
Program
Environmental
Programs Fire Facilities DIF
Long Range
Development
Plan Public Safety
REVENUES:

Taxes - $ - $ - $ - $ - $ Franchise fees - - - - - Intergovernmental 107,790 - - - 165,271 Charges for services - - - - - Fines and forfeitures - - - - - Use of money and property - 3,580 70,838 368 - Developer fees - - 922 - - Donations - - - - - Other - - - - - Special assessments - - - - - Total revenues 107,790 3,580 71,760 368 165,271 EXPENDITURES:

Current:

General government - - - - - Public safety - - - - 165,271 Public works - - - - - Library - - - - - Planning & environmental review - - - - - Neighborhood services - - - - - Capital outlay - - 7,229 116,938 - Total expenditures - - 7,229 116,938 165,271 Excess of revenues over (under) expenditures 107,790 3,580 64,531 (116,570) - OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - Net change in fund balances 107,790 3,580 64,531 (116,570) - Fund balances (deficit), beginning (107,790) 171,202 3,387,651 160,196 - Fund balances (deficit), ending -$ 174,782$ 3,452,182$ 43,626$ -$

126

-91-
Special Revenue Funds
Monarch Butterfly
Habitat
Management
Plan
Solid Waste
Recycling RSTP
Comstock Plover
Endowment
Miscellaneous
Grants Local STIP
Developer
Agreement
-$ - $ - $ -$ -$ -$ -$ - - - - - - - 978,993 46,605 75,145 - 316,265 - - - - - - - - - - - - - - - - - - - 1,974 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 978,993 46,605 75,145 1,974 316,265 - - - - - - 8,916 - - - - - - - - - 1,001,870 18,289 - - 247,855 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,001,870 18,289 - - 256,771 - - (22,877) 28,316 75,145 1,974 59,494 - - 114,432 - - - - - - - - - - - - - 114,432 - - - - - - 91,555 28,316 75,145 1,974 59,494 - - (592,760) 39,334 (495,495) - (51,313) (4,309) 615,163 (501,205)$ 67,650$ (420,350)$ 1,974$ 8,181$ (4,309)$ 615,163$

127
City of Goleta

Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2023 Continued

-92-
Special Revenue Funds
Bicycle
Pedestrian DIF Isla Vista Library CDBG HSIP SSARP
REVENUES:

Taxes - $ - $ - $ - $ - $ Franchise fees - - - - - Intergovernmental - - 209,948 - - Charges for services - - - - - Fines and forfeitures - - - - - Use of money and property 2,160 - - - - Developer fees 571 - - - - Donations - - - - - Other - - - - - Special assessments - - - - - Total revenues 2,731 - 209,948 - - EXPENDITURES:

Current:

General government - - - - - Public safety - - - - - Public works - - - - 4,078 Library - 51,870 - - - Planning & environmental review - - - - - N
eighborhood services - - 44,165 - - Capital outlay - - 137,225 - - Total expenditures - 51,870 181,390 - 4,078 Excess of revenues over (under) expenditures 2,731 (51,870) 28,558 - (4,078) OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out - - (28,558) - - Total other financing sources (uses) - - (28,558) - - Net change in fund balances 2,731 (51,870) - - (4,078) Fund balances (deficit), beginning 221,676 51,870 - 5,636 (49,404) Fund balances (deficit), ending 224,407$ -$ -$ 5,636$ (53,482)$ 128

-93-
Special Revenue Funds
Street Lighting PEG LSTP
Housing &
Community
Development Cal OES

FHWA - FEMA
Reimbursement
OTS Public
Safety
-$ - $ - $ - $ - $ - $ - $ - 56,793 - - - - - - - - 80,266 - - 565 - - - - - - - - - - - - - - 4,035 3,541 - - - - - - - - - - - - - - - - - - - - - - - - - - 305,377 - - - - - - 309,412 60,334 - 80,266 - - 565 - - - - - - - - - - - - - - 229,617 - 33,207 - - - - - - - - - - - - - - 110,164 - - - - - - - 24,249 - - - - - - - - - 229,617 - 33,207 110,164 24,249 - - 79,795 60,334 (33,207) (29,898) (24,249) - 565 - - - - - - - - - - - - - - - - - - - - - 79,795 60,334 (33,207) (29,898) (24,249) - 565 190,727 177,574 (186,933) (53,331) 44,001 58,107 (4,537) 270,522$ 237,908$ (220,140)$ (83,229)$ 19,752$ 58,107$ (3,972)$

129
City of Goleta

Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2023 Continued

-94-
Special Revenue Funds
OBF - Southern
California Edison
Certified Access
Specialist TIRCP HMGP Library Services
REVENUES:

Taxes - $ - $ - $ - $ 558,778$ Franchise fees - - - - - Intergovernmental 131,411 - 938,149 - - Charges for services - - - - - Fines and forfeitures - - - - - Use of money and property - 629 - - 15,587 Developer fees - - - - - Donations - - - - - Other - - - - - Special assessments - - - - - Total revenues 131,411 629 938,149 - 574,365 EXPENDITURES:

Current:

General government - - - - - Public safety - - - - - Public works - - - - - Library - - - - 582,363 Planning & environmental review - - - - - Neighborhood services - - - - - Capital outlay - - 707,247 1,270,296 - Total expenditures - - 707,247 1,270,296 582,363 Excess of revenues over (under) expenditures 131,411 629 230,902 (1,270,296) (7,998) OTHER FINANCING SOURCES (USES):

Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - Net change in fund balances 131,411 629 230,902 (1,270,296) (7,998) Fund balances (deficit), beginning (3,201) 532 (230,458) (5,560) 896,723 Fund balances (deficit), ending 128,210$ 1,161$ 444$ (1,275,856)$ 888,725$

130

-95-
Special Revenue Funds
County Per
Capita - Goleta
Library Buellton Library
County Per
Capita - Buellton
Library Solvang Library
County Per
Capita - Solvang
Library
Miscellaneous
Grants Library
Public
Administrartion
Facilities DIF
-$ - $ - $ - $ - $ - $ - $ - - - - - - - 729,425 193,729 157,255 184,855 180,468 17,778 - - 1,229 - 8,210 - - - - 128 - 794 - - - 3,088 2,580 3,374 1,683 3,098 - (1,340) - - - - - - 570 - 319 - 545 - - - - - - - - - - - - - - - - - 732,513 197,985 160,629 196,087 183,566 17,778 (770) - - - - - - - - - - - - - - - - - - - - - 690,053 215,690 100,149 217,904 144,978 23,807 - - - - - - - - - - - - - - - - - - - - - - 690,053 215,690 100,149 217,904 144,978 23,807 - 42,460 (17,705) 60,480 (21,817) 38,588 (6,029) (770) - - - - - - - - - - - - - - - - - - - - - 42,460 (17,705) 60,480 (21,817) 38,588 (6,029) (770) 163,932 43,036 150,003 21,817 131,980 40,852 (1,639)
206,392$ 25,331$ 210,483$ -$ 170,568$ 34,823$ (2,409)$

131
City of Goleta

Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2023 Continued

-96-
Special Revenue Funds
Community
Center Goleta Library
Affordable
Housing DIF Park DIF
Active
Transportation
Program
REVENUES:

Taxes - $ - $ - $ - $ - $ Franchise fees - - - - - Intergovernmental - - - - - Charges for services - - - - - Fines and forfeitures - - - - - Use of money and property 118,628 - (3) 178,322 - Developer fees - - 6,361 2,192 - Donations 50,000 - - - - Other - - - - - Special assessments - - - - - Total revenues 168,628 - 6,358 180,514 - EXPENDITURES:

Current:

General government - - - - - Public safety - - - - - Public works - - - 117,509 - Library - - - - - Planning & environmental review - - - - - Neighborhood services 268,102 - - - - Capital outlay - - - 272,054 - Total expenditures 268,102 - - 389,563 - Excess of revenues over (under) expenditures (99,474) - 6,358 (209,049) - OTHER FINANCING SOURCES (USES):

Transfers in 99,474 - - - - Transfers out - - - - - Total other financing sources (uses) 99,474 - - - - Net change in fund balances - - 6,358 (209,049) - Fund balances (deficit), beginning - - 8,436,144 (14,755) Fund balances (deficit), ending -$ -$ 6,358$ 8,227,095$ (14,755)$

132

-97-
Special Revenue
Funds
Federal
Transportation
Program
Total Nonmajor
Governmental
Funds
-$ 2,824,726$
- 1,350,256
230,098 6,322,045
- 19,730
- 922
- 655,425
- 13,112
- 50,864
- 232,605
- 305,377
230,098 11,775,062
- 8,916
- 165,271
- 6,987,064
- 2,084,668
- 135,164
- 336,516
636,032 3,683,395
636,032 13,400,994
(405,934) (1,625,932)
- 213,906
- (28,558)
- 185,348
(405,934) (1,440,584)
(103,412) 23,673,645
(509,346)$ 22,233,061 $

133
City of Goleta

Nonmajor Governmental Funds
Gas Tax Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-98-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 878,266$ 878,266$ 812,596$ (65,670)$ Use of money and property 14,000 14,000 43,796 29,796 Total revenues 892,266 892,266 856,392 (35,874)

EXPENDITURES
Current:

Public works 765,600 2,671,694 1,487,532 1,184,162 Total expenditures 765,600 2,671,694 1,487,532 1,184,162 Net change in fund balance 126,666 (1,779,428) (631,140) 1,148,288 Fund balance, beginning 1,779,457 1,779,457 1,779,457 - Fund balance, ending 1,906,123$ 29$ 1,148,317$ 1,148,288$ Budgeted Amounts

134
City of Goleta

Nonmajor Governmental Funds
Transportation Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-99-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 27,100$ 27,100$ 35,762$ 8,662$ Use of money and property 1,000 1,000 4,479 3,479 Total revenues 28,100 28,100 40,241 12,141

EXPENDITURES
Current:

Capital outlay - 55,232 - 55,232 Total expenditures - 55,232 - 55,232 Net change in fund balance 28,100 (27,132) 40,241 67,373 Fund balance, beginning 212,617 212,617 212,617 - Fund balance, ending 240,717$ 185,485$ 252,858$ 67,373$ Budgeted Amounts

135
City of Goleta

Nonmajor Governmental Funds
Road Maintenance and Rehabilitation Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-100-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 716,119$ 716,119$ 729,671$ 13,552$ Use of money and property 6,000 6,000 23,541 17,541 Total revenues 722,119 722,119 753,212 31,093

EXPENDITURES
Current:

Public works 619,000 1,403,359 1,026,433 376,926 Total expenditures 619,000 1,403,359 1,026,433 376,926 Net change in fund balance 103,119 (681,240) (273,221) 408,019 Fund balance, beginning 984,941 984,941 984,941 - Fund balance, ending 1,088,060$ 303,701$ 711,720$ 408,019$ Budgeted Amounts

136
City of Goleta

Nonmajor Governmental Funds
Measure A Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-101-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Taxes 2,104,200 $ 2,104,200$ 2,265,948$ 161,748$ Use of money and property 25,000 25,000 111,016 86,016 Total revenues 2,129,200 2,129,200 2,376,964 247,764

EXPENDITURES
Current:

Public works 1,260,000 2,918,062 1,281,981 1,636,081 Capital outlay 567,000 1,814,719 141,900 1,672,819 Total expenditures 1,827,000 4,732,781 1,423,881 3,308,900 Net change in fund balance 302,200 (2,603,581) 953,083 3,556,664 Fund balance, beginning 4,604,290 4,604,290 4,604,290 - Fund balance, ending 4,906,490$ 2,000,709$ 5,557,373$ 3,556,664$ Budgeted Amounts

137
City of Goleta

Nonmajor Governmental Funds
Measure A Grants Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-102-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 2,192,469$ -$ (2,192,469)$ Total revenues - 2,192,469 - (2,192,469)

EXPENDITURES
Current: -
Capital outlay 1,263,000 1,601,838 242,963 1,358,875 Total expenditures 1,263,000 1,601,838 242,963 1,358,875 Net change in fund balance (1,263,000) 590,631 (242,963) (833,594) Fund balance (deficit), beginning (590,631) (590,631) (590,631) - Fund balance (deficit), ending (1,853,631)$ -$ (833,594)$ (833,594)$ Budgeted Amounts

138
City of Goleta

Nonmajor Governmental Funds
Solid Waste Program Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-103-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Franchise fees 1,294,800$ 1,294,800$ 1,293,463$ (1,337)$ Charges for services - - 10,291 10,291 Use of money and property 4,000 4,000 35,956 31,956 Other 125,000 232,605 232,605 - Total revenues 1,423,800 1,531,405 1,572,315 40,910

EXPENDITURES
Current:

Public works 1,515,800 1,895,593 1,512,280 383,313 Total expenditures 1,515,800 1,895,593 1,512,280 383,313 Net change in fund balance (92,000) (364,188) 60,035 424,223 Fund balance, beginning 1,533,333 1,533,333 1,533,333 - Fund balance, ending 1,441,333$ 1,169,145$ 1,593,368$ 424,223$ Budgeted Amounts

139
City of Goleta

Nonmajor Governmental Funds
Public Safety Donations Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-104-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property -$ -$ (17,870)$ (17,870)$ Total revenues - - (17,870) (17,870) Net change in fund balance - - (17,870) (17,870) Fund balance, beginning 29,618 29,618 29,618 - Fund balance, ending 29,618$ 29,618$ 11,748$ (17,870)$ Budgeted Amounts

140
City of Goleta

Nonmajor Governmental Funds
County Fire DIF Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-105-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 100,000$ 849,514$ -$ (849,514)$ Total revenues 100,000 849,514 - (849,514)

EXPENDITURES
Current:

Capital outlay 100,000 723,950 151,511 572,439 Total expenditures 100,000 723,950 151,511 572,439 Net change in fund balance - 125,564 (151,511) (277,075) Fund balance (deficit), beginning (125,564) (125,564) (125,564) - Fund balance (deficit), ending (125,564)$ -$ (277,075)$ (277,075)$ Budgeted Amounts

141
City of Goleta

Nonmajor Governmental Funds
Library Facilities DIF Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-106-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 500$ 500$ 4,837$ 4,337$ Developer fees 4,500 4,500 177 (4,323) Total revenues 5,000 5,000 5,014 14

EXPENDITURES
Current:

Library 184,000 184,000 57,854 126,146 Total expenditures 184,000 184,000 57,854 126,146 Net change in fund balance (179,000) (179,000) (52,840) 126,160 Fund balance, beginning 220,719 220,719 220,719 - Fund balance, ending 41,719$ 41,719$ 167,879$ 126,160$ Budgeted Amounts

142
City of Goleta

Nonmajor Governmental Funds
Sheriff Facilities DIF Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-107-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 300$ 300$ 2,917$ 2,617$ Total revenues 300 300 2,917 2,617

EXPENDITURES
Current:

Capital outlay - 70,281 - 70,281 Total expenditures - 70,281 - 70,281 Net change in fund balance 300 (69,981) 2,917 72,898 Fund balance, beginning 139,502 139,502 139,502 - Fund balance, ending 139,802$ 69,521$ 142,419$ 72,898$ Budgeted Amounts

143
City of Goleta

Nonmajor Governmental Funds
Housing In-Lieu Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-108-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 6,000$ 6,000$ 26,356$ 20,356$ Total revenues 6,000 6,000 26,356 20,356

EXPENDITURES
Current:

Planning & environmental review 25,000 25,000 25,000 - Total expenditures 25,000 25,000 25,000 - Net change in fund balance (19,000) (19,000) 1,356 20,356 Fund balance, beginning 1,250,001 1,250,001 1,250,001 - Fund balance, ending 1,231,001$ 1,231,001$ 1,251,357$ 20,356$ Budgeted Amounts

144
City of Goleta

Nonmajor Governmental Funds
Storm Drain DIF Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-109-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 100$ 100$ 8,255$ 8,155$ Developer fees 72,600 72,600 2,319 (70,281) Total revenues 72,700 72,700 10,574 (62,126)

EXPENDITURES
Current:

Public works - 50,000 26,413 23,587 Capital outlay 550,000 550,000 - 550,000 Total expenditures 550,000 600,000 26,413 573,587 Net change in fund balance (477,300) (527,300) (15,839) 511,461 Fund balance, beginning 532,103 532,103 532,103 - Fund balance, ending 54,803$ 4,803$ 516,264$ 511,461$ Budgeted Amounts

145
City of Goleta

Nonmajor Governmental Funds
Planning Grants Program Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-110-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 114,881$ 107,790$ (7,091)$ Total revenues - 114,881 107,790 (7,091)

EXPENDITURES
Current:

Planning & environmental review - 7,091 - 7,091 Total expenditures - 7,091 - 7,091 Net change in fund balance - 107,790 107,790 - Fund balance (deficit), beginning (107,790) (107,790) (107,790) - Fund balance, ending (107,790)$ -$ -$ -$ Budgeted Amounts

146
City of Goleta

Nonmajor Governmental Funds
Environmental Programs Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-111-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 500$ 500$ 3,580$ 3,080$ Total revenues 500 500 3,580 3,080

EXPENDITURES
Current:

Public works 9,400 9,400 - 9,400 Total expenditures 9,400 9,400 - 9,400 Net change in fund balance (8,900) (8,900) 3,580 12,480 Fund balance, beginning 171,202 171,202 171,202 - Fund balance, ending 162,302$ 162,302$ 174,782$ 12,480$ Budgeted Amounts

147
City of Goleta

Nonmajor Governmental Funds
Fire Facilities DIF Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-112-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 15,000$ 15,000$ 70,838$ 55,838$ Developer fees 37,300 37,300 922 (36,378) Total revenues 52,300 52,300 71,760 19,460

EXPENDITURES
Current:

Capital outlay - 4,842,367 7,229 4,835,138 Total expenditures - 4,842,367 7,229 4,835,138 Net change in fund balance 52,300 (4,790,067) 64,531 4,854,598 Fund balance, beginning 3,387,651 3,387,651 3,387,651 - Fund balance, ending 3,439,951$ (1,402,416)$ 3,452,182$ 4,854,598$ Budgeted Amounts

148
City of Goleta

Nonmajor Governmental Funds
Long Range Development Plan Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-113-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 3,318,514$ -$ (3,318,514)$ Use of money and property - - 368 368 Total revenues - 3,318,514 368 (3,318,146)

EXPENDITURES
Current:

Capital outlay - 3,318,514 116,938 3,201,576 Total expenditures - 3,318,514 116,938 3,201,576 Net change in fund balance - - (116,570) (116,570) Fund balance, beginning 160,196 160,196 160,196 - Fund balance, ending 160,196$ 160,196$ 43,626$ (116,570)$ Budgeted Amounts

149
City of Goleta

Nonmajor Governmental Funds
Public Safety Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-114-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 156,700$ 165,271$ 165,271$ -$ Total revenues 156,700 165,271 165,271 -

EXPENDITURES
Current:

Public safety 156,700 165,271 165,271 - Total expenditures 156,700 165,271 165,271 - Net change in fund balance - - - - Fund balance, beginning - - - - Fund balance, ending -$ -$ -$ -$ Budgeted Amounts

150
City of Goleta

Nonmajor Governmental Funds
Monarch Butterfly Habitat Management Plan Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-115-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 3,975,000$ 978,993$ (2,996,007)$ Total revenues - 3,975,000 978,993 (2,996,007)

EXPENDITURES
Current:

Public works - 1,809,106 1,001,870 807,236 Capital outlay 75,000 1,590,018 - 1,590,018 Total expenditures 75,000 3,399,124 1,001,870 2,397,254 Excess of revenues over (under) expenditures (75,000) 575,876 (22,877) (598,753) OTHER FINANCING SOURCES (USES):

Transfers in - - 114,432 114,432 Total other financing sources (uses) - - 114,432 114,432 Net change in fund balance (75,000) 575,876 91,555 (484,321) Fund balance (deficit), beginning (592,760) (592,760) (592,760) - Fund balance (deficit), ending (667,760)$ (16,884)$ (501,205)$ (484,321)$ Budgeted Amounts

151
City of Goleta

Nonmajor Governmental Funds
Solid Waste Recycling Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-116-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 8,000$ 54,605$ 46,605$ (8,000)$ Total revenues 8,000 54,605 46,605 (8,000)

EXPENDITURES
Current:

Public works 8,200 54,805 18,289 36,516 Total expenditures 8,200 54,805 18,289 36,516 Net change in fund balance (200) (200) 28,316 28,516 Fund balance, beginning 39,334 39,334 39,334 - Fund balance, ending 39,134$ 39,134$ 67,650$ 28,516$ Budgeted Amounts

152
City of Goleta

Nonmajor Governmental Funds
RSTP Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-117-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 640,460$ 75,145$ (565,315)$ Total revenues - 640,460 75,145 (565,315)

EXPENDITURES
Capital outlay - 10,151 - 10,151 Total expenditures - 10,151 - 10,151 Net change in fund balance - 630,309 75,145 (555,164) Fund balance, beginning (495,495) (495,495) (495,495) - Fund balance, ending (495,495)$ 134,814$ (420,350)$ (555,164)$ Budgeted Amounts

153
City of Goleta

Nonmajor Governmental Funds
Comstock Plover Endowment Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-118-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 2,000$ 2,000$ 1,974$ (26)$ Total revenues 2,000 2,000 1,974 (26)

EXPENDITURES
Current:

Planning and environmental review 2,000 2,000 - 2,000 Total expenditures 2,000 2,000 - 2,000 Net change in fund balance - - 1,974 1,974 Fund balance, beginning - - - - Fund balance, ending -$ -$ 1,974$ 1,974$ Budgeted Amounts

154
City of Goleta

Nonmajor Governmental Funds
Miscellaneous Grants Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-119-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 599,833$ 316,265$ (283,568)$ Total revenues - 599,833 316,265 (283,568)

EXPENDITURES
Current:

General government - 9,435 8,916 519 Public works - 538,500 247,855 290,645 Capital outlay - 555 - 555 Total expenditures - 548,490 256,771 291,719 Net change in fund balance - 51,343 59,494 8,151 Fund balance, beginning (51,313) (51,313) (51,313) - Fund balance, ending (51,313)$ 30$ 8,181$ 8,151$ Budgeted Amounts

155
City of Goleta

Nonmajor Governmental Funds
Local STIP Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-120-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 11,386,694$ -$ (11,386,694)$ Total revenues - 11,386,694 - (11,386,694)

EXPENDITURES
Current:

Capital outlay - 11,372,000 - 11,372,000 Total expenditures - 11,372,000 - 11,372,000 Net change in fund balance - 14,694 - (14,694) Fund balance (deficit), beginning (4,309) (4,309) (4,309) - Fund balance (deficit), ending (4,309)$ 10,385$ (4,309)$ (14,694)$ Budgeted Amounts

156
City of Goleta

Nonmajor Governmental Funds
Developer Agreement Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-121-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 1,500$ 1,500$ -$ (1,500)$ Total revenues 1,500 1,500 - (1,500)

EXPENDITURES
Current:

Capital outlay - 270,000 - 270,000 Total expenditures - 270,000 - 270,000 Net change in fund balance 1,500 (268,500) - 268,500 Fund balance, beginning 615,163 615,163 615,163 - Fund balance, ending 616,663$ 346,663$ 615,163$ 268,500$ Budgeted Amounts

157
City of Goleta

Nonmajor Governmental Funds
Bicycle and Pedestrian DIF Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-122-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 100$ 100$ 2,160$ 2,060$ Developer fees 14,300 14,300 571 (13,729) Total revenues 14,400 14,400 2,731 (11,669) Net change in fund balance 14,400 14,400 2,731 (11,669) Fund balance, beginning 221,676 221,676 221,676 - Fund balance, ending 236,076$ 236,076$ 224,407$ (11,669)$ Budgeted Amounts

158
City of Goleta

Nonmajor Governmental Funds
Isla Vista Library Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-123-
Original Final
Actual
Amounts
Variance with
Final Budget

EXPENDITURES
Current:

Library -$ 51,870$ 51,870$ -$ Total expenditures - 51,870 51,870 - Net change in fund balance - (51,870) (51,870) - Fund balance, beginning 51,870 51,870 51,870 - Fund balance, ending 51,870$ -$ -$ -$ Budgeted Amounts

159
City of Goleta

Nonmajor Governmental Funds
CDBG Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-124-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 353,279$ 995,374$ 209,948$ (785,426)$ Total revenues 353,279 995,374 209,948 (785,426)

EXPENDITURES
Current:

Neighborhood services 277,971 280,223 44,165 236,058 Capital outlay 271,301 669,291 137,225 532,066 Total expenditures 549,272 949,514 181,390 768,124 Excess of revenues over (under) expenditures (195,993) 45,860 28,558 (17,302) OTHER FINANCING SOURCES (USES):

Transfers out (43,800) (45,860) (28,558) 17,302 Total other financing sources (uses) (43,800) (45,860) (28,558) 17,302 Net change in fund balance (239,793) - - - Fund balance, beginning - - - - Fund balance, ending (239,793)$ -$ -$ -$ Budgeted Amounts

160
City of Goleta

Nonmajor Governmental Funds
HSIP Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-125-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 2,739,500$ 3,120,100$ -$ (3,120,100)$ Total revenues 2,739,500 3,120,100 - (3,120,100)

EXPENDITURES
Current:

Public works 2,739,500 3,120,100 - 3,120,100 Total expenditures 2,739,500 3,120,100 - 3,120,100 Net change in fund balance - - - - Fund balance, beginning - - - - Fund balance, ending -$ -$ -$ -$ Budgeted Amounts

161
City of Goleta

Nonmajor Governmental Funds
SSARP Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-126-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 53,000$ -$ (53,000)$ Total revenues - 53,000 - (53,000)

EXPENDITURES
Current:

Public works - 3,596 4,078 (482) Total expenditures - 3,596 4,078 (482) Net change in fund balance - 49,404 (4,078) (53,482) Fund balance (deficit), beginning (49,404) (49,404) (49,404) - Fund balance (deficit), ending (49,404)$ -$ (53,482)$ (53,482)$ Budgeted Amounts

162
City of Goleta

Nonmajor Governmental Funds
Street Lighting Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-127-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 500$ 500$ 4,035$ 3,535$ Special assessments 305,500 305,500 305,377 (123) Total revenues 306,000 306,000 309,412 3,412

EXPENDITURES
Current:

Public works 305,500 333,637 229,617 104,020 Total expenditures 305,500 333,637 229,617 104,020 Net change in fund balance 500 (27,637) 79,795 107,432 Fund balance, beginning 190,727 190,727 190,727 - Fund balance, ending 191,227$ 163,090$ 270,522$ 107,432$ Budgeted Amounts

163
City of Goleta

Nonmajor Governmental Funds
PEG Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-128-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Franchise fees 70,000$ 70,000$ 56,793$ (13,207)$ Use of money and property 1,000 1,000 3,541 2,541 Total revenues 71,000 71,000 60,334 (10,666) Net change in fund balance 71,000 71,000 60,334 (10,666) Fund balance, beginning 177,574 177,574 177,574 - Fund balance, ending 248,574$ 248,574$ 237,908$ (10,666)$ Budgeted Amounts

164
City of Goleta

Nonmajor Governmental Funds
LSTP Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-129-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 119,117$ 603,109$ -$ (603,109)$ Total revenues 119,117 603,109 - (603,109)

EXPENDITURES
Current:

Public works 119,117 415,732 33,207 382,525 Total expenditures 119,117 415,732 33,207 382,525 Net change in fund balance - 187,377 (33,207) (220,584) Fund balance (deficit), beginning (186,933) (186,933) (186,933) - Fund balance (deficit), ending (186,933)$ 444$ (220,140)$ (220,584)$ Budgeted Amounts

165
City of Goleta

Nonmajor Governmental Funds
Housing and Community Development Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-130-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 233,654$ 80,266$ (153,388)$ Total revenues - 233,654 80,266 (153,388)

EXPENDITURES
Current:

Planning and environmental review - 180,323 110,164 70,159 Total expenditures - 180,323 110,164 70,159 Net change in fund balance - 53,331 (29,898) (83,229) Fund balance (deficit), beginning (53,331) (53,331) (53,331) - Fund balance (deficit), ending (53,331)$ -$ (83,229)$ (83,229)$ Budgeted Amounts

166
City of Goleta

Nonmajor Governmental Funds
Cal OES Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-131-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ (14,231)$ -$ 14,231$ Total revenues - (14,231) - 14,231

EXPENDITURES
Current:

Neighborhood services - 29,770 24,249 5,521 Total expenditures - 29,770 24,249 5,521 Net change in fund balance - (44,001) (24,249) 19,752 Fund balance, beginning 44,001 44,001 44,001 - Fund balance, ending 44,001$ -$ 19,752$ 19,752$ Budgeted Amounts

167
City of Goleta

Nonmajor Governmental Funds
FHWA-FEMA Reimbursement Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2022

-132-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 87,746$ -$ (87,746)$ Total revenues - 87,746 - (87,746)

EXPENDITURES
Current:

Capital outlay - 87,746 - 87,746 Total expenditures - 87,746 - 87,746 Net change in fund balance - - - - Fund balance, beginning 58,107 58,107 58,107 - Fund balance, ending 58,107$ 58,107$ 58,107$ -$ Budgeted Amounts

168
City of Goleta

Nonmajor Governmental Funds
OTS Public Safety Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-133-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 4,537$ 565$ (3,972)$ Total revenues - 4,537 565 (3,972) Net change in fund balance - 4,537 565 (3,972) Fund balance (deficit), beginning (4,537) (4,537) (4,537) - Fund balance (deficit), ending (4,537)$ -$ (3,972)$ (3,972)$ Budgeted Amounts

169
City of Goleta

Nonmajor Governmental Funds
OBF - Southern California Edison Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-134-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 634,612$ 131,411$ (503,201)$ Total revenues - 634,612 131,411 (503,201) Net change in fund balance - 634,612 131,411 (503,201) Fund balance (deficit), beginning (3,201) (3,201) (3,201) - Fund balance, ending (3,201)$ 631,411$ 128,210$ (503,201)$ Budgeted Amounts

170
City of Goleta

Nonmajor Governmental Funds
Certified Access Specialist Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-135-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 100$ 100$ 629$ 529$ Total revenues 100 100 629 529 Net change in fund balance 100 100 629 529 Fund balance, beginning 532 532 532 - Fund balance, ending 632$ 632$ 1,161$ 529$ Budgeted Amounts

171
City of Goleta

Nonmajor Governmental Funds
TIRCP Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-136-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 9,681,877$ 10,739,773$ 938,149$ (9,801,624)$ Total revenues 9,681,877 10,739,773 938,149 (9,801,624)

EXPENDITURES
Current:

Capital outlay 9,681,877 10,478,711 707,247 9,771,464 Total expenditures 9,681,877 10,478,711 707,247 9,771,464 Net change in fund balance - 261,062 230,902 (30,160) Fund balance (deficit), beginning (230,458) (230,458) (230,458) - Fund balance, ending (230,458)$ 30,604$ 444$ (30,160)$ Budgeted Amounts

172
City of Goleta

Nonmajor Governmental Funds
HMGP Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-137-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 3,858,620$ -$ (3,858,620)$ Total revenues - 3,858,620 - (3,858,620)

EXPENDITURES
Current:

Capital outlay - 3,853,060 1,270,296 2,582,764 Total expenditures - 3,853,060 1,270,296 2,582,764 Net change in fund balance - 5,560 (1,270,296) (1,275,856) Fund balance (deficit), beginning (5,560) (5,560) (5,560) - Fund balance (deficit), ending (5,560)$ -$ (1,275,856)$ (1,275,856)$ Budgeted Amounts

173
City of Goleta

Nonmajor Governmental Funds
Library Services Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-138-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Taxes 558,600 $ 558,600$ 558,778$ 178$ Use of money and property 2,000 2,000 15,587 13,587 Total revenues 560,600 560,600 574,365 13,765

EXPENDITURES
Current:

Library 673,500 673,500 582,363 91,137 Total expenditures 673,500 673,500 582,363 91,137 Net change in fund balance (112,900) (112,900) (7,998) 104,902 Fund balance, beginning 896,723 896,723 896,723 - Fund balance, ending 783,823$ 783,823$ 888,725$ 104,902$ Budgeted Amounts

174
City of Goleta

Nonmajor Governmental Funds
County Per Capita - Goleta Library Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-139-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 682,112$ 729,425$ 729,425$ -$ Use of money and property 500 500 3,088 2,588 Total revenues 682,612 729,925 732,513 2,588

EXPENDITURES
Current:

Library 761,200 761,200 690,053 71,147 Total expenditures 761,200 761,200 690,053 71,147 Net change in fund balance (78,588) (31,275) 42,460 73,735 Fund balance, beginning 163,932 163,932 163,932 - Fund balance, ending 85,344$ 132,657$ 206,392$ 73,735$ Budgeted Amounts

175
City of Goleta

Nonmajor Governmental Funds
Buellton Library Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-140-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 193,729$ 193,729$ 193,729$ -$ Charges for services 900 900 1,229 329 Fine and forfeitures 750 750 128 (622) Use of money and property - - 2,580 2,580 Donations 100 100 319 219 Total revenues 195,479 195,479 197,985 2,506

EXPENDITURES
Current:

Library 216,900 216,900 215,690 1,210 Total expenditures 216,900 216,900 215,690 1,210 Net change in fund balance (21,421) (21,421) (17,705) 3,716 Fund balance, beginning 43,036 43,036 43,036 - Fund balance, ending 21,615$ 21,615$ 25,331$ 3,716$ Budgeted Amounts

176
City of Goleta

Nonmajor Governmental Funds
County Per Capita - Buellton Library Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-141-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 157,255$ 157,255$ 157,255$ -$ Use of money and property - - 3,374 3,374 Total revenues 157,255 157,255 160,629 3,374

EXPENDITURES
Current:

Library 135,400 135,400 100,149 35,251 Total expenditures 135,400 135,400 100,149 35,251 Net change in fund balance 21,855 21,855 60,480 38,625 Fund balance, beginning 150,003 150,003 150,003 - Fund balance, ending 171,858$ 171,858$ 210,483$ 38,625$ Budgeted Amounts

177
City of Goleta

Nonmajor Governmental Funds
Solvang Library Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-142-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 184,855$ 184,855$ 184,855$ -$ Charges for services 1,700 1,700 8,210 6,510 Fine and forfeitures 1,000 1,000 794 (206) Use of money and property - - 1,683 1,683 Donations 10,000 10,000 545 (9,455) Total revenues 197,555 197,555 196,087 (1,468)

EXPENDITURES
Current:

Library 224,800 224,800 217,904 6,896 Total expenditures 224,800 224,800 217,904 6,896 Net change in fund balance (27,245) (27,245) (21,817) 5,428 Fund balance, beginning 21,817 21,817 21,817 - Fund balance, ending (5,428)$ (5,428)$ -$ 5,428$ Budgeted Amounts

178
City of Goleta

Nonmajor Governmental Funds
County Per Capita Solvang Library Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-143-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 180,468$ 180,468$ 180,468$ -$ Use of money and property - - 3,098 3,098 Total revenues 180,468 180,468 183,566 3,098

EXPENDITURES
Current:

Library 161,400 161,400 144,978 16,422 Total expenditures 161,400 161,400 144,978 16,422 Net change in fund balance 19,068 19,068 38,588 19,520 Fund balance, beginning 131,980 131,980 131,980 - Fund balance, ending 151,048$ 151,048$ 170,568$ 19,520$ Budgeted Amounts

179
City of Goleta

Nonmajor Governmental Funds
Miscellaneous Grants Library Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-144-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental -$ 15,628$ 17,778$ 2,150$ Total revenues - 15,628 17,778 2,150

EXPENDITURES
Current:

Library - 56,480 23,807 32,673 Total expenditures - 56,480 23,807 32,673 Net change in fund balance - (40,852) (6,029) 34,823 Fund balance, beginning 40,852 40,852 40,852 - Fund balance, ending 40,852$ -$ 34,823$ 34,823$ Budgeted Amounts

180
City of Goleta

Nonmajor Governmental Funds
Public Administration Facilities DIF Special Revenue Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-145-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property -$ -$ (1,340)$ (1,340)$ Developer fees 17,800 17,800 570 (17,230) Total revenues 17,800 17,800 (770) (18,570)

EXPENDITURES
Current:

Capital outlay - 17,030 - 17,030 Total expenditures - 17,030 - 17,030 Net change in fund balance 17,800 770 (770) (1,540) Fund balance (deficit), beginning (1,639) (1,639) (1,639) - Fund balance (deficit), ending 16,161$ (869)$ (2,409)$ (1,540)$ Budgeted Amounts

181
City of Goleta

Nonmajor Governmental Funds
Community Center Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-146-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 124,590$ 124,590$ 118,628$ (5,962)$ Donations - 50,000 50,000 - Total revenues 124,590 174,590 168,628 (5,962)

EXPENDITURES
Current:

Neighborhood services 501,800 601,300 268,102 333,198 Total expenditures 501,800 601,300 268,102 333,198 Excess of revenues over (under) expenditures (377,210) (426,710) (99,474) 327,236 OTHER FINANCING SOURCES (USES):

Transfers in - 99,474 99,474 - Total other financing sources (uses) - 99,474 99,474 - Net change in fund balance (377,210) (327,236) - 327,236 Fund balance, beginning - - - - Fund balance, ending (377,210)$ (327,236)$ -$ 327,236$ Budgeted Amounts

182
City of Goleta

Nonmajor Governmental Funds
Affordable Housing DIF
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-147-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property -$ -$ (3)$ (3)$ Developer fees 84,200 84,200 6,361 (77,839) Total revenues 84,200 84,200 6,358 (77,842) Net change in fund balance 84,200 84,200 6,358 (77,842) Fund balance, beginning - - - - Fund balance, ending 84,200$ 84,200$ 6,358$ (77,842)$ Budgeted Amounts

183
City of Goleta

Nonmajor Governmental Funds
Park DIF Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-148-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Use of money and property 35,000$ 35,000$ 178,322$ 143,322$ Developer fees 55,000 55,000 2,192 (52,808) Total revenues 90,000 90,000 180,514 90,514

EXPENDITURES
Current:

Public works - 213,555 117,509 96,046 Capital outlay 1,120,000 6,793,712 272,054 6,521,658 Total expenditures 1,120,000 7,007,267 389,563 6,617,704 Net change in fund balance (1,030,000) (6,917,267) (209,049) 6,708,218 Fund balance, beginning 8,436,144 8,436,144 8,436,144 - Fund balance, ending 7,406,144$ 1,518,877$ 8,227,095$ 6,708,218$ Budgeted Amounts

184
City of Goleta

Nonmajor Governmental Funds
Active Transportation Program Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-149-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 650,000$ 3,359,000$ -$ (3,359,000)$ Total revenues 650,000 3,359,000 - (3,359,000)

EXPENDITURES
Current:

Capital outlay 650,000 3,344,245 - 3,344,245 Total expenditures 650,000 3,344,245 - 3,344,245 Net change in fund balance - 14,755 - (14,755) Fund balance (deficit), beginning (14,755) (14,755) (14,755) - Fund balance (deficit), ending (14,755)$ -$ (14,755)$ (14,755)$ Budgeted Amounts

185
City of Goleta

Nonmajor Governmental Funds
Federal Transportation Program Special Revenue Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
For the Year Ended June 30, 2023

-150-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:

Intergovernmental 1,668,000$ 15,478,056$ 230,098$ (15,247,958)$ Total revenues 1,668,000 15,478,056 230,098 (15,247,958)

EXPENDITURES
Current:

Capital outlay 1,668,000 15,374,644 636,032 14,738,612 Total expenditures 1,668,000 15,374,644 636,032 14,738,612 Net change in fund balance - 103,412 (405,934) (509,346) Fund balance (deficit), beginning (103,412) (103,412) (103,412) - Fund balance (deficit), ending (103,412)$ -$ (509,346)$ (509,346)$ Budgeted Amounts

186



STATISTICAL SECTION
187



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188
City of Goleta

Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

-151-

STATISTICAL SECTION

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

Contents Pages

Financial Trends
These schedules contain trend information to help the reader understand how the City's performance financial and well-being have changed over time.
152-156

Revenue Capacity
These schedules contain information to help assess the City's mast significant local revenue source, the property tax and transit occupancy tax. 159-165

Debt Capacity
These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City’s ability to issue additional debt in the future.
166-168

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.
170-171

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the Clay provides and the activities it performs. 172-174

Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

189



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190
City of Goleta

Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)

-152-
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities:

Net investment in capital assets 172,564,805$ 183,863,622 $ 181,519,215 $ 180,871,756 $ 189,886,346 $ 191,612,268 $ 202,170,314 $ 196,120,737 $ 195,800,347 $ 199,419,212 $ Restricted 18,154,319 17,955,771 28,429,446 36,891,364 34,623,415 34,490,037 35,223,059 40,085,550 42,881,716 35,667,016 Unrestricted 10,963,974 11,095,734 15,465,702 19,440,126 6,765,954 13,891,718 6,697,065 21,525,728 30,575,470 30,728,544 Total governmental activities net position 201,683,098$ 212,915,127 $ 225,414,363 $ 237,203,246 $ 231,275,715 $ 239,994,023 $ 244,090,438 $ 257,732,015 $ 269,257,533 $ 265,814,772 $

191
City of Goleta

Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)

-153-
Primary Government - Governmental Activities 2014 2015 2016 2017 Expenses
General government 5,071,322$ 5,563,514$ 5,910,221$ 6,755,208$ Public safety 7,386,485 7,598,735 7,611,834 7,741,361
Public works 10,704,905 8,784,684 9,350,254 10,965,391
Community development 34,194 297,547 44,509 49,858
Community services 4,385,593 4,270,831 4,363,053 6,359,917 Library - - - - Planning & environmental review - - - - Neighborhood services - - - - Interest and other charges - - - - Total expenses 27,582,499 26,515,311 27,279,871 31,871,735 Program revenues:

Charges for services:

General government 43,744 48,740 32,874 18,929
Public safety 176,260 197,928 156,125 129,051
Public words 1,194,632 1,241,016 1,258,930 1,338,942
Community development 2,040,086 1,664,052 2,156,101 2,234,166 Community services 15,567 17,665 17,799 18,419
Library - - - - Planning & environmental review - - - - Neighborhood services - - - - Operating grants and contributions:

General government - - - - Public safety 142,605 106,258 114,671 424,256
Public words 2,564,451 2,342,000 2,117,379 3,289,699
Community development - - - - Community Services - - - - Library - - - - Planning & environmental review - - - - Neighborhood services - - - - Capital grants and contrlbutlons:

General government - - - - Public safety 53,324 34,781 243,648 71,579
Public works 10,688,258 11,996,936 10,947,335 13,029,843 Community development 21,975 374,039 373,338 21,517
Community services 44,096 25,744 156,033 59,491
Library - - - - Planning & environmental review - - - - Neighborhood services - - - - Total program revenues 16,984,998 18,049,159 17,574,233 20,635,892 Net revenues (expenses) (10,597,501) (8,466,152) (9,705,638) (11,235,843) General revenues and other changes
in net position:

Taxes:

Property taxes 5,163,756 5,266,101 5,719,552 6,051,805
Sales and use taxes 6,812,304 6,329,870 6,216,442 6,491,121 Transient lodging tax 6,976,954 7,807,830 8,175,456 8,615,207 Franchise taxes 1,223,935 1,272,418 1,241,017 1,202,162 Other taxes 247,795 274,256 292,277 246,876
Use of money and property 112,050 90,723 126,310 148,899 Other general revenues 378,825 341,687 433,820 781,108
Transfer in from City of Santa Barbara - - - - Total general revenues 20,915,619 21,382,885 22,204,874 23,537,178 Changes in net position 10,318,118$ 12,916,733$ 12,499,236$ 12,301,335$ Fiscal Year Ended June 30,

192

-154-
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023
12,562,598$ 6,819,954 $ 6,574,206 $ 6,552,687 $ 7,637,311 $ 10,376,662 $ 8,582,868 8,046,890 7,646,327 7,262,255 8,695,216 9,349,732 18,234,912 12,815,994 12,253,012 12,255,501 16,520,360 22,540,161 425,086 756,848 486,631 463,691 1,014,887 -
5,273,153 6,148,076 7,854,597 8,394,651 7,051,170 -
- - - - - 2,588,836 - - - - - 4,056,009 - - - - - 2,650,927 - - - 227,333 258,610 281,218 45,078,617 34,587,762 34,814,773 35,156,118 41,177,554 51,843,545 464 18,431 73,238 75,473 98,700 111,780
125,000 - - - - - 737,673 718,392 925,703 959,250 1,467,664 1,118,930
1,268,821 1,023,206 1,239,522 1,020,686 1,103,385 -
- 5,433 7,121 1,250 6,704 -
- - - - - 25,846 - - - - - 1,124,373 - - - - - 107,070 - 15,336 60,538 44,375 3,020,465 1,536,995 191,248 150,690 - 6,348 - - 937,123 640,432 743,838 927,972 762,120 765,187
- - 50,543 273,575 - - - 1,037,379 1,883,517 1,555,802 1,581,633 - - - - - - 1,577,883 - - - - - 1,183,612 - - - - - 100,097 - - - - - - 688,348 524,047 264,511 489,217 714,138 -
6,045,265 4,184,252 2,412,918 10,437,978 4,352,804 297,603 634,694 1,057,706 486,569 161,376 298,779 4,152,611
130,502 995,705 40,028 346,613 15,869 -
- - - - - 177 - - - - - - - - - - - 209,949 10,759,138 10,371,009 8,188,046 16,299,915 13,422,261 12,312,113 (34,319,479) (24,216,753) (26,626,727) (18,856,203) (27,755,293) (39,531,432) 6,504,431 6,954,616 7,323,010 7,578,502 8,299,838 8,878,497 7,976,472 8,629,829 8,359,879 9,391,156 10,733,246 10,992,006 10,117,460 11,564,512 9,197,440 9,239,079 14,341,129 13,884,890 1,325,238 1,409,104 1,431,693 1,478,848 1,577,968 1,693,236 1,253,424 1,716,932 1,892,658 4,054,191 3,437,524 1,460,097 747,399 1,264,583 1,531,668 310,821 (314,219) 1,229,802 851,175 610,827 986,794 445,183 1,205,325 763,590
- 341,749 - - - - 28,775,599 32,492,152 30,723,142 32,497,780 39,280,811 38,902,118 (5,543,880)$ 8,275,399$ 4,096,415$ 13,641,577$ 11,525,518$ (629,314)$

193
City of Goleta

Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)

-155-
2014 2015 2016 2017
General fund:

Nonspendable 460,192$ 410,865$ 82,990$ 135,766$ Committed 12,862,911 12,746,021 15,417,875 14,007,924
Assigned - 417,369 977,903 6,356,024 Unassigned 553,862 415,531 1,838,612 938,971
Total general fund 13,876,965$ 13,989,786$ 18,317,380$ 21,438,685$ All other governmental funds:

Nonspendable 167$ 182$ 100,074$ 112,700$ Restricted 15,788,665 17,955,589 28,329,372 36,792,174
Assigned - - - - Unassigned (2,359,311) (330,121) (729,923) (1,084,155)
Total all other governmental funds 13,429,521$ 17,625,650$ 27,699,523$ 35,820,719$ Fiscal Year Ended June 30,
Vote: GASB 54 was implemented in 2011, prior years have no comparable data.

194

-156-
Fiscal Year Ended June 30,
2018 2019 2020 2021 2022 2023
50,197$ 139,940 $ 74,711 $ 25,674 $ 26,176 $ 15,049 $ 10,717,463 10,468,732 11,087,037 12,617,011 12,753,580 14,180,140 4,448,640 5,351,819 3,269,986 2,517,302 7,006,229 13,033,030 4,286,175 7,066,128 2,846,216 17,632,671 19,482,955 12,303,831 19,502,475$ 23,026,619 $ 17,277,950 $ 32,792,658 $ 39,268,940 $ 39,532,050 $ 13,045$ 30,055 $ 908 $ - $ 1,545$ 3,000 $ 34,623,070 33,573,116 35,222,459 40,085,550 39,873,176 37,178,898 - - - - - - (3,582,604) (1,078,759) (2,397,034) (2,531,901) (2,621,092) (4,202,542) 31,053,511$ 32,524,412$ 32,826,333$ 37,553,649$ 37,253,629$ 32,979,356$ 195
City of Goleta

Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)

-157-
2014 2015 2016 2017
Revenues:

Taxes 22,339,191$ 22,925,753$ 23,649,455$ 24,631,621$ Franchise fees - - - - Intergovernmental 6,400,343 11,740,038 1,923,771 2,358,692 Charges for services 2,697,388 2,353,873 2,864,921 2,963,297 Licenses and permits - 4,756 2,436 16,713 Fines and forfeitures 176,260 197,928 156,125 129,051 Use of money and property 288,061 279,670 346,146 414,124 Developer fees 3,918,215 3,904,960 10,426,271 11,877,652 Donations - - - - Other 378,825 342,685 433,922 781,110 Special assessments - - - - Total revenues 36,198,283 41,749,663 39,803,047 43,172,260 Expenditures
Current:

General government 4,945,251 5,044,002 6,434,016 6,703,041 Public safety 7,464,395 7,571,316 7,564,633 7,713,313 Public works 5,129,309 4,817,198 4,433,051 5,778,897 Community development 34,194 279,741 26,703 32,271 Community services 4,385,593 4,388,910 4,558,781 6,482,998 Library - - - - Planning and environmental review - - - - Neighborhood services - - - - Capital outlay 14,130,471 15,339,546 2,896,848 4,706,787 Debt service:

Principal 22,007 - - - Interest - - - - Total expenditures 36,111,220 37,440,713 25,914,032 31,417,307 Excess (deficiency) of revenues over (under) expenditures 87,063 4,308,950 13,889,015 11,754,953 Other financing sources (uses):

Lease Proceeds - - - - Transfer from City of Santa Barbara - - - - Transfers in 14,153,059 2,429,567 1,323,699 67,038 Transfers out (14,153,059) (2,429,567) (1,323,699) (67,038) Subscription/lease acquisition
Total other financing sources (uses) - - - - Net change in fund balances 87,063$ 4,308,950$ 13,889,015$ 11,754,953$ Debt service as a percentage of noncapital expenditures 0.10% 0.00% 0.00% 0.00% Fiscal Year Ended June 30,
196

-158-
2018 2019 2020 2021 2022 2023
26,900,090$ 29,929,836$ 27,863,962$ 31,247,854$ 37,873,993$ 35,774,267$ - - - - - 2,986,699 3,175,254 6,221,465 4,433,794 7,585,636 6,362,724 7,196,296 2,131,958 1,765,462 2,245,584 2,056,659 2,676,453 1,850,433 276,935 345,157 340,718 374,896 515,712 549,197 157,573 211,003 170,392 119,026 169,201 170,961 747,399 1,264,583 1,531,668 310,821 (314,219) 1,922,814 6,269,163 2,230,638 1,149,944 6,852,979 1,342,764 27,180 - 272,945 93,482 69,883 73,325 119,841 693,602 399,824 816,402 445,183 1,036,124 311,166 - - - - - 305,377 40,351,974 42,640,913 38,645,946 49,062,937 49,736,077 51,214,231 6,172,071 7,841,267 6,995,184 6,873,224 8,920,674 11,912,545 8,545,945 8,031,031 7,608,120 7,235,324 8,668,285 9,322,801 12,361,238 7,187,008 6,448,010 6,357,423 11,352,463 16,934,678 405,516 747,001 473,415 455,937 1,014,887 - 4,846,289 5,865,827 7,425,212 7,993,126 7,822,195 - - - - - - 2,454,031 - - - - - 3,852,658 - - - - - 2,577,336 14,639,100 7,250,004 16,208,232 9,788,546 5,297,511 7,931,040 - - - - 222,740 228,620 - - - 117,333 261,060 284,434 46,970,159 36,922,138 45,158,173 38,820,913 43,559,815 55,498,143 (6,618,185) 5,718,775 (6,512,227) 10,242,024 6,176,262 (4,283,912) - - - 10,000,000 - - - 341,749 - - - - 19,919 23,182 29,983 33,316 124,704 242,464 (19,919) (23,182) (29,983) (33,316) (124,704) (242,464) 119,201
- 341,749 - 10,000,000 - 119,201 (6,618,185)$ 6,060,524$ (6,512,227)$ 20,242,024$ 6,176,262$ (4,164,711)$

0.00% 0.00% 0.00% 0.40% 1.26% 1.34%
Fiscal Year Ended June 30,

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198
City of Goleta

Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years

-159-
Fiscal Year Ended
June 30,
Secured and
Unsecured Less: Exemptions
Taxable Assessed
Value
Secured and
Unsecured Less: Exemptions
Taxable Assessed
Value
Total Direct Tax
Rate (A)
2014 5,476,016,337$ 250,788,107 $ 5,225,228,230$ 1,221,226,250 $ 153,699,413 $ 1,067,526,837$ 1.04228% 2015 5,635,342,590 215,724,563 5,419,618,027 1,232,513,103 152,751,877 1,079,761,226 1.04159% 2016 6,089,379,285 218,841,848 5,870,537,437 1,278,194,953 161,350,968 1,116,843,985 1.03768% 2017 6,399,862,393 241,333,422 6,158,528,971 1,331,787,175 167,186,201 1,164,600,974 1.03373% 2018 6,840,489,088 310,162,712 6,530,326,376 1,436,831,839 220,447,902 1,216,383,937 1.04378% 2019 7,443,733,341 343,551,969 7,100,181,372 1,536,947,763 231,427,714 1,305,520,049 1.04055% 2020 7,765,046,350 326,660,076 7,438,386,274 1,611,933,172 217,376,249 1,394,556,923 1.04010% 2021 8,248,711,546 357,716,937 7,890,994,609 1,763,413,461 228,144,193 1,535,269,268 1.03921% 2022 8,495,241,471 329,120,264 8,166,121,207 1,831,054,657 222,258,769 1,608,795,888 1.05745% 2023 9,035,530,759 324,635,677 8,710,895,082 1,939,990,804 223,988,797 1,716,002,007 1.05429% Note :

In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% 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 High School District, and Santa Barbara City College. (A) Effective February 1, 2012, the Redevelopement Agency was dissolved. See Note 16.

Redevelopement AgencyCity

199
City of Goleta

Direct and Overlapping Governments Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of taxable value)

-160-
2014 2015 2016 2017
City Direct Rates:

City of Goleta Basic Levy (1 ) 1.00000 1.00000 1.00000 1.00000 Overlapping Rates (2):

Goleta Unified School District 0.01383 0.01314 0.01248 0.01061 Santa Barbara City College 0.00850 0.00850 0.00850 0.00731 Santa Barbara High School District 0.01995 0.01995 0.01670 0.01581 Rates 1.04228 1.04159 1.03768 1.03373
City's Share of 1 %Levy Per Prop 13 (3) 0.04903 0.04903 0.04903 0.04903 Redevelopment Rate (4) - - - - Total Direct Rate (5) 0.05104 0.05103 0.05094 0.05095
Notes:
years thereafter.

Sources: Santa Barbara Auditor-Controller
City of Goleta, Finance Department
(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 Fiscal Year Ended June 30,
(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. overlapping rates apply to all city property owners.
(2) Overlapping rates are thane of local and county governments that apply to property owners within the City. Not all 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 2012-13 . For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue. values. The approval of ABX 1 26 eliminated Redevelopment for the State of California for the fiscal year 2012-13 and (5) Total Direct Rate is the weighted average of all individual direct rate applied to by the government preparing the statistical

200

-161-
2018 2019 2020 2021 2022 2023

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.00955 0.00907 0.00862 0.00776 0.02621 0.02124

0.00731 0.00731 0.00731 0.00731 0.00709 0.00688

0.02692 0.02417 0.02417 0.02414 0.02415 0.02617

1.04378 1.04055 1.04010 1.03921 1.05745 1.05429

0.04903 0.04903 0.04903 0.04903 0.04903 0.04903
- - - - - -

0.05090 0.05081 0.05080 0.04835 0.04840 0.04840
Fiscal Year Ended June 30,

201
City of Goleta

Principal Property Tax Payers
Current Fiscal Year and Nine Years Ago

-162-
Taxpayer Primary Use
Taxable
Assessed Value
Percent of Total
City Taxable
Assessed Value
Ruby SB Hotel LLC Commercial 389,332,231$ 4.77%
Goleta Hollister Apartments LLC Residential 128,231,923 1.57% SP Maravilla LLC Institutional 126,260,205 1.55%
Deckers Cabrillo LLC Commercial 106,256,202 1.30% 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%
Sumida Family LP Residential 64,752,186 0.79%
Goleta HHG Hotel Development LP Commercial 51,110,487 0.63% Top Ten Total 1,213,415,110$ 14.86%
Taxpayer Primary Use
Taxable
Assessed Value
Percent of Total
City Taxable
Assessed Value
SP Maravilla, 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 50,000,000 0.98% Sumida Family 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%
Top Ten 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
2023
2014
202
City of Goleta

Property Tax Levies and Collections
Last Ten Fiscal Years

-163-
Fiscal Year
Ended June 30,
Taxes Levied for
the Fiscal Year Amount Perecnt of Levy
Collections in
Subsequent
Years Amount Perecnt of Levy
2014 2,311,154$ 2,311,154$ 100.00% - 2,311,154$ 100.00% 2015 2,538,700 2,538,700 100.00% - 2,538,700 100.00% 2016 2,752,953 2,752,953 100.00% - 2,752,953 100.00% 2017 2,904,565 2,904,565 100.00% - 2,904,565 100.00% 2018 3,093,044 3,093,044 100.00% - 3,093,044 100.00% 2019 3,375,135 3,375,135 100.00% - 3,375,135 100.00% 2020 3,545,819 3,545,819 100.00% - 3,545,819 100.00% 2021 3,790,194 3,790,194 100.00% - 3,790,194 100.00% 2022 3,922,347 3,922,347 100.00% - 3,922,347 100.00% 2023 4,189,395 4,189,395 100.00% - 4,189,395 100.00% Source: City of Goleta, Finance Department
Collected within the
Fiscal Year if Levy Total Collections to Date (1)
(1) The City participates in the Teeter Plan. The Teeter Plan is an alternative method of apportloning property tax money. Cities participation 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.

203
City of Goleta

Revenue and Rate of Transient Occupancy Tax
Last Ten Fiscal Years

-164-
Fiscal Year
Ended June 30,
Transient
Occupancy
Taxes for the
Fiscal Year
Transient
Occupancy Tax
Rate
2014 6,976,954$ 12%
2015 7,807,830 12%
2016 8,175,456 12%
2017 8,615,207 12%
2018 10,117,460 12%
2019 11,564,512 12%
2020 9,197,440 12%
2021 9,239,079 12%
2022 14,341,129 12%
2023 13,865,335 12%
Notes:
(1) Starting January 1, 2013, the tax rate increased from 10% to 12%.

Source: City of Goleta, Finance Department
204
City of Goleta

Principal Transient Occupancy Tax Payers
Current Fiscal Year and Nine Years Ago

-165-
2023
The Leta
Hampton Inn
Hilton Garden Inn
Courtyard by Marriot
t
Motel 6
Pacifica Suites
Residence Inn by Marriot
t
The Ritz-Carlton Bacara
South Coast Inn (Best Western)
2014
Bacara Resort Spa
Courtyard by Marriot
t
Hampton Inn
Holiday Inn
Motel 6
Pacifica Suites
South Coast Inn
Super 8 Motel
Note:

Source: City of Goleta, Finance Department
Top transient occupant' tax payers are listed in alphabetical order.

205
City of Goleta

Ratios of Outstanding Debt by Type
Last Ten Fiscal Years

-166-
Fiscal Year
Ended June 30,
Certificate of
Participation Capital Leases Loans Payable
Total
Governmental
Activities
Percentage of
Personal Income Debt per Capita
2014 - $ - $ - $ - $ 0.00% - $ 2015 - - - - 0.00% - 2016 - - - - 0.00% - 2017 - - - - 0.00% - 2018 - - - - 0.00% - 2019 - - - - 0.00% - 2020 - - - - 0.00% - 2021 - 10,000,000 - 10,000,000 0.80% 309 2022 - 9,777,260 - 9,777,260 0.72% 301 2023 - 9,548,641 - 9,548,641 0.66% 294 Note:

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: City of Goleta, Finance Department

206
City of Goleta

Direct and Overlapping Governmental Activities Debt
For the Year Ended June 30, 2023

-167-
2022-2023 Assessed Valuations: 8,710,379,349$
Direct and Overlapping Tax and Assessment Debt
Total Outstanding
Debt 6/30/2023
Percentage
Applicable (1)
City's Share of
Overlapping Debt
6/30/2023
Santa Barbara Community College District 51,355,000 $ 12.590% 6,465,595 $ Santa Barbara Unified School District 152,260,000 14.291% 21,759,477 Goleta Union School District 41,445,000 52.381% 21,709,305 Santa Barbara High School District 65,669,327 14.291% 9,384,804 Total Direct and Overlapping Tax and Assessment Debt 59,319,181 $ Overlapping General Fund Debt
Santa Barbara County General Fund Obligations 23,640,000 8.497% 2,008,691$ City of Goleta General Fund Obligation 9,548,640 100.000% 9,548,640 Goleta West Sanitary District General Fund Obligation 13,702,000 77.474% 10,615,487 Total gross Overlapping General Fund Debt 22,172,818
Less: Santa Barbara County supported obligations 124,906 Total Net Overlapping General Fund Debt 22,047,912$
Overlapping Tax Increment Debt (Successor Angency) 10,725,000 100.000% 10,725,000$ Total Direct Debt 9,548,640
Total Gross Overlapping Debt 82,668,359
Total Net Overlapping Debt 82,543,453
Gross Combined Total Debt 92,216,999 (2)
Net Combined Total Debt 92,092,093
Ratios to 2020-2021 Assessed Valuations:

Direct Debt 0.11%
Total Direct and Overlapping Tax and Assessment Debt 0.68% Gross Combined Total Debt 1.06%
Net Combined Total Debt 1.06%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,123,294,115 ):

Total Overlapping Tax Increment Debt 0.86%
Notes:
obligations.

Source: County of Santa Barbara
(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

207
City of Goleta

Computation of Legal Debt Margin
Last Ten Fiscal Years

-168-
2014 2015 2016 2017
Assessed valuation 5,476,016,337$ 5,635,342,590$ 6,089,379,285$ 6,399,862,393$ Conversion 25% 25% 25% 25%
Adjusted assessed valaution 1,369,004,084 1,408,835,648 1,522,344,821 1,599,965,598 Debt limit percentage 15% 15% 15% 15%
Debt limit 205,350,613 211,325,357 228,351,723 239,994,840 Total net debt applicable to limitation - - - - Legal debt margin 205,350,613$ 211,325,347$ 228,351,723$ 239,994,840$ Total debt applicable to the limit as
a percentage of debt 0.0% 0.0% 0.0% 0.0%
Fiscal Year Ended June 30,
Source: City of Goleta, Finance Department
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of 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.

208

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2018 2019 2020 2021 2022 2023
6,840,494,388$ 7,443,765,341$ 7,765,120,920$ 8,248,711,546$ 8,495,241,471$ 9,035,530,759$ 25% 25% 25% 25% 25% 25%
1,710,123,597 1,860,941,335 1,941,280,230 2,062,177,887 2,123,810,368 2,258,882,690 15% 15% 15% 15% 15% 15%
256,518,540 279,141,200 291,192,035 309,326,683 318,571,555 338,832,403 - - - - - - 256,518,540$ 279,141,200$ 291,192,035$ 309,326,683$ 318,571,555$ 338,832,403$

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year Ended June 30,

209
City of Goleta

Demographic and Economic Statistics
Last Ten Fiscal Years

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Santa Barbara
County
Fiscal Year
Ended June 30,
Population (1)
City of Goleta
Population (1)
(in thousands)
Personal
Income (2)
(in thousands)
Per Capita
income (2) (in
thousands)
Unemployment
Rate (3)
2014 30,202 433 1,022,368$ 33.9 $ 2.60% 2015 30,298 438 994,502 32.8 3.60% 2016 31,235 447 1,015,220 32.5 3.10% 2017 31,760 451 1,085,698 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% 2023 32,442 441 1,451,177 44.7 2.30% Sources:

City of Goleta
(3) California Employment Development Department
(2) U.S. Department of Commerce, Bureau of Economic Analysis (Santa Barbara-Santa Maria-Goleta) (1) California Department of Finance, FIDL Demographics & Economic Statstics

210
City of Goleta

Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago

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Employer
Number of
Employees
Employement %
to Total
Population Employer
Number of
Employees
Employement %
to Total
Population
University of California, Santa Barbara (1) 10,973 34.05% Sansum Cilnic 1,200 3.97% Raytheon 1,100 3.41% Raytheon 1,150 3.81%
Sansum 822 2.55% Goleta Unified School District 645 2.14% Goleta Cottage Hospital 813 2.52% Citrix Online 600 1.99% Yardi 658 2.04% Bacara Resort 578 1.91%
The Ritz-Carlton 650 2.02% Yardi Systems 575 1.90%
AppFolio 647 2.01% FLIR 573 1.90%
Tecolote Research 570 1.77% Goleta Cottage Hospital 375 1.24% Jordano's 550 1.71% Curvature, LLC 350 1.16%
Goleta Union School District 529 1.64% Karl Storz Imaging 310 1.03% Deckers Outdoors 500 1.55% Allergan (Inamed) 300 0.99%
FLIR Commercial Vision Systems 490 1.52% Medtronic 299 0.99% Karl Storz Imaging 350 1.09% Network Hardware Resale 275 0.91% Costco 271 0.90%
Mentor Corp 260 0.86%
Inogen Inc. 220 0.73%
The Home Depot 164 0.54%
161 0.53%
Source: City of Goleta
2023 2014
(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.

211
City of Goleta

Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years

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Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government 8.40 14.55 16.30 16.30 16.40 15.65 15.65 17.65 16.90 17.65 General Services - - - - - - - - 3.00 5.00 Library Department (1) - - - - 9.38 9.38 15.38 15.38 16.13 17.13 Administrative Services (2) 4.80 - - - - - - - - - Finance Department 4.00 4.45 6.00 6.00 6.00 7.00 7.00 7.00 10.00 12.00 Planning and
Environmental Services 11.50 13.80 14.80 15.80 15.00 15.00 15.50 17.50 18.50 18.50 Neighborhood Services
and Public Safety 4.00 5.00 4.00 5.00 5.00 5.00 6.00 6.00 6.50 9.50 Public Works 16.00 17.90 22.90 22.90 22.90 25.90 25.90 25.90 29.00 36.00 Total 48.70 55.70 64.00 66.00 74.68 77.93 85.43 89.43 100.03 115.78 B
uellton and Solvang Libraries beginning on July 1, 2019. (1) In fiscal year 2019-2020; the pity council approved the transition to assume management and operations of the (2) Beginning in fiscal year 2014-2015; the Administrative Services has been combined with General Government Source: City of Goleta, Finance Department

212
City of Goleta

Operating Indicators by Function
Last Ten Fiscal Years

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Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police (1)
Calls for Service 20,277 23,150 25,025 23,894 22,690 21,802 21,933 20,281 22,359 21,218 Citations 1,586 1,444 1,033 871 834 1,073 550 858 1,564 997 Reports Taken 3,079 3,293 3,238 3,329 3,218 3,204 3,170 2,881 3,402 2,938 Fire (2)
Calls for Service 3,065 3,751 3,856 3,962 4,140 5,184 4,113 5,109 4,424 3,453 Public Works (3)
Street resurfacing (miles) 5.8 12.9 - 6.7 6.8 3.3 1.8 1.2 3.8 2.7 Source: City of Goleta, Finance Department

213
City of Goleta

Capital Asset Statistics by Function
Last Ten Fiscal Years

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2014 2015 2016 2017
Public Safety:

Police Stations - - - - Fire Stations 3 3 3 3
Community Development and Community Services:

Parks and Open Space -Acreage 477 477 477 477
Community Center 1 1 1 1
Library 1111
Historic Stowe House 1 1 1 1
Amtrak Restrooms 1 1 1 1
Elementary Schools (K - 6) 5 5 5 5
Middle Schools (6-8) 1 1 1 1
High Schools (9 - 12) 1 1 1 1
Private Schools 4 4 4 4
Special Needs Schools - - - - Public works:

Area of City (Square Miles) 8.0 8.0 8.0 8.0
Miles of Streets 174.0 174.0 174.0 174.0
Number of Streetlights 103 103 103 103
Number of Vehicles (City-wide) 14 20 18 21
Corporation Yard 1 1 1 1
Source: Various City of Goleta Departments
Fiscal Year Ended June 30,
(1) City contracts with County of Santa Barbara for Law Enforcement Services. (2) Fire Department related services are provided by the County Fire Department. by Southern California Edison (SCE) In addition to those owned and maintained by the City. (3) There are one thousand five hundred sixty seven 1,57) streetlights owned and maintained

214

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2018 2019 2020 2021 2022 2023
- - - - - - 333333
477 477 550 550 550 550
111111
113333
111111
111111
555555
111111
111111
444444
- - - - - -

8.0 8.0 8.0 8.0 8.0 8.0
174.0 174.0 174.0 174.0 174.0 187.2
103 103 1433 1433 1433 1464
21 21 21 21 21 31
111111
Fiscal Year Ended June 30,

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216

ATTACHMENT 2:

Government Auditing Standards Letter

217

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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

Independent Auditor’s Report

To the Honorable Mayor and Members of the City Council
City of Goleta
Goleta, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United Stat es, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Goleta, Califor nia (the City), as of and for the year ended June 30, 2023, and the related not es to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 27, 2024.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of ex pressing our opinions on the financial statements, but not for the purpos e of expressing an opinion on the effectiveness of the City’s internal co ntrol. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or em ployees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in inte rnal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify deficiencies that we consider to be material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control t hat might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal cont rol that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

218

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Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of non compliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effe ctiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
March 27, 2024
219

ATTACHMENT 3:

Statement of Auditing Standards Letter
220

-1-

March 27, 2024

To the Honorable Mayor and Members of the City Council
City of Goleta
Goleta, California

We have audited the financial statements of the City of Goleta, California (the City) as of and for the year ended June 30, 2023, and have issued our report thereon dated March 27, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter dated July 17, 2023, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are fr ee of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting.

Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.
221
To the Honorable Mayor and Members of the City Council
City of Goleta

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Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm and our firm, have complied with all relevant ethical requirements regarding independence.

Significant Risks Identified

We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. The City has adopted provisions of Governmental Ac counting Statements Board (GASB) Statement No. 96, Subscription-Based IT Arrangements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) t he methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assump tions about future events. Certain accounting estimates are particularly sensitive because of thei r significance to the financ ial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are:

Management’s estimate of fair market value of investments is based on market values provided by outside sources. We evaluated the key factors and assumptions used to develop the fair market value of investments in determining that it is reasonable in relation to the financial statements taken as a whole.

222
To the Honorable Mayor and Members of the City Council
City of Goleta

-3-

Management’s estimate of depreciation expense is based on the useful lives of acquired assets. We evaluated the key factors and assumptions used to develop depreciation expense in determining that it is reasonable in relation to the financial statements taken as a whole.

Management’s estimate of compensated absence is based on accumulated compensation for vacation, sick leave and compensatory time to employees. We evaluated the key factors and assumptions used to develop the estimate in determining that is reasonable in relation to the financial statements taken as a whole.

The estimate of the net pension liability is based on actuarial reports provided by independent actuaries.

We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the statements taken as a whole.

The estimate of the net OPEB liability is based on actuarial reports provided by independent actuaries.

We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the statements taken as a whole.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of fair value of investments in the notes to the financial statements represents amounts susceptible to market fluctuations.

The disclosure of capital assets, net, in the notes to the basic financial statements is based on historical information which could differ from actual useful lives of each capitalized item.

The disclosure of compensated absences in t he notes to the financial statements is based on accumulated compensation for vacation, sick leave and compensatory time to employees. Actual future liabilities may vary from disclosed estimates.

The disclosure of net pension liability in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.

The disclosure of net OPEB liability in the notes to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates.

The financial statement disclosures are neutral, consistent, and clear.

Significant Difficulties Encountered during the Audit

We encountered no significant difficulties in dealing wi th management relating to the performance of the audit.

223
To the Honorable Mayor and Members of the City Council
City of Goleta

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Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the aud it, other than those that we belie ve are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrect ed misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management, which are included in the attached letter dated March 27, 2024.

Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principl es and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strat egies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Reports

Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s audited financia l statements, does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards:

We applied certain limited procedures to the r equired supplementary information (RSI) that supplements the basic financial statements. Our pr ocedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the ba sic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

224
To the Honorable Mayor and Members of the City Council
City of Goleta

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We were engaged to report on the supplementary information, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accoun ting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial st atements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent wi th the information, or m anner of its presentation, appearing in the financial statements.

This information is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

San Bernardino, California
March 27, 2024
225

CITY COUNCIL

Paula Perotte
Mayor

Luz Reyes-Martín
Mayor Pro Tempore
District 1

Stuart Kasdin
Councilmember

James Kyriaco
Councilmember
District 2

Kyle Richards
Councilmember

CITY M AN AGE R
Robert Nisbet

March 27, 2024

Rogers, Anderson, Malody & Scott, LLP
735 E. Carnegie Drive, Suite 100
San Bernardino, California 92408

RE: Management Representation Letter

This representation letter is provided in connection with your audit of the financial statements of the City of Goleta (the City) as of June 30, 2023 and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the financial statements present fairly, in all material respects, the financial position, and results of operations of the various opinion units of the City in accordance with accounting principles generally accepted for governments in the United States of America (U.S.

GAAP).

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information such that, in the light of surrounding circumstances, 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.

We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of March 27, 2024:

Financial Statements

 We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated July 17, 2023, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.
 We acknowledge our responsibility 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.
 We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 226