Adopting Resolutions Approving Preliminary Official Statements in Connection with the Issuance and Sale by the Goleta Facilities Financing Authority of its Local Measure A Transportation Sales Tax Revenue Bonds and Lease Revenue Bonds — Goleta City Council, February 4, 2025 (part 2 of 2)

CHANGES IN FUND BALANCE

Fiscal Year
2019-20
Fiscal Year
2020-21
Fiscal Year
2021-22
Fiscal Year
2022-23
Fiscal Year
2023-24
Revenues:

Taxes $25,354,067 $28,539,361 $34,805,610 $32,949,541 $38,401,945 Franchise Fees -- -- -- 1,636,443 1,678,956
Intergovernmental 42,292 39,992 53,470 49,251 55,952
Charges for Services 1,478,593 1,270,903 1,412,413 1,830,703 2,324,775 Licenses and Permits 340,718 374,896 515,712 549,197 525,476 Fines and Forfeitures 166,011 118,873 168,350 170,039 159,358 Use of Money and Property 565,849 209,018 (105,800) 1,006,241 2,087,471 Developer Fees -- -- -- -- --
Donations (1) 67,173 48,283 61,948 68,977 93,897
Other Revenues 642,329 372,804 687,077 78,561 141,720
Total revenues 28,657,032 30,974,130 37,598,780 38,338,953 45,469,550

Expenditures:

Current:

General Government 6,974,660 6,871,119 8,920,270 11,753,629 11,091,149 Public Safety 7,452,279 6,959,079 8,470,638 9,157,530 10,733,668 Public Works 4,435,487 4,435,672 7,525,226 9,267,171 8,861,564 Library (2) 307,436 98,525 106,184 369,363 192,615
Planning and Environmental Review (2) 5,549,584 5,731,229 5,289,443 3,717,494 4,418,650 Neighborhood Services (2) -- -- -- 2,240,820 2,085,987
Capital Outlay (3) 10,781,717 1,279,781 251,641 1,144,183 2,077,239 Debt Service:

Principal -- -- 222,740 228,620 234,655
Interest -- 117,333 261,060 284,434 277,633
Total expenditures 35,501,163 25,492,738 31,047,202 38,163,244 39,973,160 Excess of Revenues Over (Under)
Expenditures (6,844,131) 5,481,392 6,551,578 175,709 5,496,390

Other Financing Sources (Uses):

Lease Proceeds (3) -- 10,000,000 -- -- --
Transfers In 29,983 33,316 24,704 28,558 160,157
Transfers Out -- -- (100,000) (213,906) (432,950)
Subscription/Lease Acquisition (4) -- -- -- 119,201 38,545 Total Other Financing Sources
(Uses) 29,983 10,033,316 (75,296) (66,147) (234,248)
Net Change in Fund Balances (6,814,148) 15,514,708 6,476,282 109,562 5,262,142

Fund Balances:

Beginning of Year 24,092,098 17,277,950 32,792,658 39,422,488 39,532,050 End of Year $17,277,950 $32,792,658 $39,268,940 $39,532,050 $44,794,192

(1) The City regularly receives contributions for various operating and infrastructure expenses from individuals and civic organizations. (2) What was previously reported under com munity development and community services is, [beginning with Fiscal Year 2022-23], reflected as Library, Planning and Environmental Review, and Neighborhood Services. Neighborhood Services include homelessness program services, emergency s ervices, and parks and recreation services, including the Goleta community center. (3) Fiscal Year 2019-20 and 2020 -21 capital outlay and other financing sources include expenditures and their reimbursement from lease revenue bond proceeds attributed to the California Infrastructure and Economic Development Bank lease revenue financing for the acquisition of City Hall that was completed in August 2020. Net proceeds of this lease revenue financing reimbursed the City $10,000,000 of the $11,500,000 acquisition costs for the City Hall. (4) The City has entered into a lease (as the lessee) for equipment and certain subscription liabilities for the use of software packages. The lease term range is for 60 months with monthly payments from $839 to $2,141 with an interest rate of 3.01%. The subscription term is 29 months with monthly pay ments from $2,751 to $2,916 with an interest rate of 22.42%.
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This statement is a summary statement only . The City’s Annual Comprehensive Financial Report, including the notes to the Audited Financial Statements, are an integral part of and necessary to a complete understanding of this summary table . See APPENDIX C – “CITY OF GOLETA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.” Source: City of Goleta Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024.

CITY OF GOLETA

GENERAL FUND ADOPTED BUDGETS

Fiscal Year
2020-21
Fiscal Year
2021-22
Fiscal Year
2022-23
Fiscal Year
2023-24
Fiscal Year
2024-25
Revenues:

Taxes $26,485,600 $32,769,400 $31,047,887 $37,463,614 $44,252,300 Franchise Fees -- -- 1,592,100 1,601,000 1,681,050
Intergovernmental 30,000 56,000 56,000 56,400 56,000
Charges for Services 1,326,600 1,394,300 1,885,700 2,181,512 2,283,100 Licenses and Permits 406,000 475,900 452,100 476,500 347,800 Fines and Forfeitures 103,100 140,600 141,000 127,788 157,500 Use of Money and Property 217,600 355,500 334,000 1,492,000 1,012,000 Donations (1) 63,000 65,000 64,991 370,350 80,000
Other Revenues 382,800 546,000 14,231 500 500
Total Revenues 29,014,700 35,802,700 35,588,009 43,769,664 49,870,250

Expenditures:

Current:

General Government 7,716,536 9,658,719 13,585,229 13,198,084 13,502,538 Public Safety 7,762,900 8,639,819 9,766,000 10,734,592 11,548,800 Public Works 5,667,274 11,974,418 15,385,619 15,332,085 14,344,100 Library (2) -- -- 434,591 343,511 629,400
Planning and Environmental
Review (2) 158,000 483,178 4,954,561 5,311,942 5,319,300 Neighborhood Services (2) 6,901,411 7,683,980 2,627,159 2,586,921 2,775,400 Capital Outlay (3) 2,029,750 3,417,402 8,316,733 16,137,552 2,001,900 Debt Service:

Principal -- 222,740 228,620 234,655 240,850
Interest -- 261,060 284,434 277,633 270,652
Total Expenditures 30,235,871 42,341,316 55,583,036 64,156,975 50,632,940

Excess of Revenues Over (Under)
Expenditures (1,221,171) (6,538,616) (19,995,027) (20,387,311) (762,690)

Other Financing Sources (Uses):

Lease Proceeds (4) 10,000,000 -- -- -- --
Transfers In 37,200 43,800 43,800 178,919 54100
Transfers Out -- (603,500) (99,474) (668,300) (808,200) Subscription/Lease Acquisition (5) -- -- 119,201 -- --
Total Other Financing
Sources (Uses) 10,037,200 (559,700) 63,527 (489,381) (754,100)

Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other Uses 8,816,029 (7,098,316) (19,931,500) (20,876,692) (1,516,790)

Fund Balances:

Beginning of Year 17,277,950 32,792,658 39,422,488 39,532,050 44,615,788 End of Year $26,093,979 $25,694,342 $19,490,988 $18,655,358 $43,098,998

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(2) What was previously reported under community development and community services is, [beginning with Fiscal Year 2022 -23], reflected as Library, Planning and Environmental Review, and Neighborhood Services. Neighborhood Services include homelessness program services, em ergency services, and parks and recreation services, including the Goleta community center. (3) [Capital outlays in Fiscal Year 2023-24 consist of _____________]. (4) Fiscal Year 2019-20 and 2020-21 capital outlay and other financing sources include expenditures and their reimbursement from lease revenue bond proceeds attributed to the California Infrastructure and Economic Development Bank lease revenue financing for the acquisition of City Hall that was completed in August 2020. Net proceeds of this lease revenue financing reimbursed the City $10,000,000 of the $11,500,000 acquisition costs for the City Hall. (5) The City has entered into a lease (as the lessee) for equipment and certain subscription liabilities for the use of software packages. The lease term range is for 60 months with monthly payments from $839 to $2,141 with an interest rate of 3.01%. The subscription term is 29 months with monthly payments from $2,751 to $2,916 with an interest rate of 22.42%.

Note: During the course of each Fiscal Year, the budget is amended and revised as necessary by the City Council. The adopted budget for each fiscal year shown below is the final adopted budget as adjusted by the City Council. Numbers may not sum due to rounding.

Sources: City of Goleta Finance Department and City of Goleta Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024. 185

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CITY OF GOLETA

GENERAL FUND ADOPTED BUDGETS AND AUDITED RESULTS

Fiscal Year
2022-23
Final Budget
Fiscal Year
2022-23
Audited
Fiscal Year
2023-24
Final Budget
Fiscal Year
2023-24
Audited
Fiscal Year
2024-25
Adopted Budget
Revenues:

Taxes $31,047,887 $32,949,541 $37,463,614 $38,401,945 $44,252,300 Franchise Fees 1,592,100 1,636,443 1,601,000 1,678,956 1,681,050 Intergovernmental 56,000 49,251 56,400 55,952 56,000
Charges for Services 1,885,700 1,830,703 2,181,512 2,324,775 2,283,100 Licenses and Permits 452,100 549,197 476,500 525,476 347,800 Fines and Forfeitures 141,000 170,039 127,788 159,358 157,500 Use of Money and Property 334,000 1,006,241 1,492,000 2,087,471 1,012,000 Donations (1) 64,991 68,977 370,350 93,897 80,000
Other Revenues 14,231 78,561 500 141,720 500
Total Revenues 35,588,009 38,338,953 43,769,664 45,469,550 49,870,250

Expenditures:

Current:

General Government 13,585,229 11,753,629 13,198,084 11,091,149 13,502,538 Public Safety 9,766,000 9,157,530 10,734,592 10,733,668 11,548,800 Public Works 15,385,619 9,267,171 15,332,085 8,861,564 14,344,100 Library (2) 434,591 369,363 343,511 192,615 629,400
Planning and Environmental
Review (2) 4,954,561 3,717,494 5,311,942 4,418,650 5,319,300 Neighborhood Services (2) 2,627,159 2,240,820 2,586,921 2,085,987 2,775,400 Capital Outlay (3) 8,316,733 1,144,183 16,137,552 2,077,239 2,001,900 Debt Service:

Principal 228,620 228,620 234,655 234,655 240,850
Interest 284,434 284,434 277,633 277,633 270,652
Total Expenditures 55,583,036 38,163,244 64,156,975 39,973,160 50,632,940

Excess of Revenues Over (Under)
Expenditures (19,995,027) 175,709 (20,387,311) 5,496,390 (762,690)

Other Financing Sources (Uses):

Lease Proceeds (4) -- -- -- -- --
Transfers In 43,800 28,558 178,919 160,157 54100
Transfers Out (99,474) (213,906) (668,300) (432,950) (808,200) Subscription/Lease Acquisition (5) 119,201 119,201 -- 38,545 -- Total Other Financing
Sources (Uses) 63,527 (66,147) (489,381) (234,249) (754,100)

Excess (Deficiency) of Revenues
and Other Sources Over (Under)
Expenditures and Other Uses (19,931,500) 109,562 (20,876,692) 5,262,142 (1,516,790)

Fund Balances:

Beginning of Year 39,422,488 39,422,488 39,532,050 39,532,050 44,615,788 End of Year $19,490,988 $39,532,050 $18,655,358 $44,794,192 $43,098,998

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(3) [Capital outlays in Fiscal Year 2023-24 consist of _____________]. (4) Fiscal Year 2019-20 and 2020-21 capital outlay and other financing sources include expenditures and their reimbursement from lease revenue bond proceeds attributed to the California Infrastructure and Economic Development Bank lease revenue financing for the acquisition of City Hall that was completed in August 2020. Net proceeds of this lease revenue financing reimbursed the City $10,000,000 of the $11,500,000 acquisition costs for the City Hall. (5) The City has entered into a lease (as the lessee) for equipment and certain subscription liabilities for the use of software packages. The lease term range is for 60 months with monthly payments from $839 to $2,141 with an interest rate of 3.01%. The subscription term is 29 months with monthly payments from $2,751 to $2,916 with an interest rate of 22.42%.

Sources: City of Goleta Finance Department and City of Goleta Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024. 187

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Management Discussion
[For discussion: The City, like other government agencies across California, faces increasing annual operating costs and rising retirement -related liabilities. Significant challenges for the City include increased ongoing funding needs for deferred maintenance items, such as pavement mai ntenance, facility upgrades, and park improvements. Additionally, implementing major management and master plan documents, such as the Homelessness Strategic Plan, the Bicycle and Pedestrian Master Plan, the Stowe Grove Master Plan, and the Creeks and Wate rshed Management Plan, requires sustained financial commitments. Rising contract service costs add another layer of complexity to these efforts. As described herein, other than the Series 2025A Bonds, the City does not have any current plans for additional General Fund lease finance obligations in the next three years.

Major CIP projects are projected to remain underfunded and face the risk of increased funding gaps due to escalating construction costs. Key infrastructure projects addressing transportation, drainage, and public facilities risk delays, complicating the City’s ability to meet long-term goals.

Despite these challenges, the City has historically mitigated financial pressures through the strategic use of contract services and one-time savings. Anticipated cost increases and revenue uncertainties in future years, parti cularly in TOT and sales tax revenues, present additional hurdles. Inflation, Federal Reserve actions, and broader economic conditions further complicate fiscal planning efforts. The City is actively exploring strategies to address these challenges, inclu ding evaluating operational efficiencies, renegotiating service contracts, and leveraging advanced financial management tools.] Fiscal Year 2024-25 General Fund Budget Overview
[To Discuss 2025 trends]

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Outstanding Obligations
The City’s outstanding obligations as of June 30, 2024 payable from General Fund revenues, like the Base Rental Payments are shown in detail in the table below . The City has one lease obligation outstanding payable from General Fund revenues, like the Base Rental Payments.

CITY OF GOLETA
SUMMARY OF OUTSTANDING INDEBTEDNESS AS OF JUNE 30, 2023 AND 2024

Ending
Balance
June 30, 2023 Additions Deletions
Ending
Balance
June 30, 2024
Due Within
One Year
Governmental Activities
Compensated absences (1) $ 857,251 $897,853 $ 724,766 $ 1,030,338 $ 206,068 Successor Agency Settlement (2) 1,551,882 -- 775,941 775,941 775,941 IBank Lease Payable 9,548,640 -- 234,655 9,313,985 240,850 Lease Liabilities (3) 38,051 -- 7,567 30,484 7,797
Subscription Liabilities (4) 65,201 38,545 37,951 65,795 46,653 Claims Liability (5) -- -- -- -- --
Total Debt Activity $12,061,025 $936,398 $1,780,880 $11,216,543 $1,277,309

(1) This liability is expected to be paid in future years from future resources. Compensated absences have typically been liquidated from the General Fund.
(2) 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.
(3) The City has entered into a lease (as the lessee) for equipment. The lease term range is for 60 months with monthly payments from $839 to $2,141 with an interest rate of 3.01%.
(4) The City has entered into certain subscription liabilities for the use of software packages. The subscription term is 29 months with monthly payments from $2,751 to $2,916 with an interest rate of 22.42%. (5) There is currently no City liability for claims and judgments not expected to be covered in the ordinary course of adjustment through the insurance pool. See “NO LITIGATION – The City” and the discussion under the caption “Risk Management” in APPENDIX B – “THE CITY OF GOLETA: ECONOMIC, DEMOGRAPHIC AND FINANCIAL INFORMATION.” Source: City of Goleta Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024.

On August 1, 2020, the City entered into a lease financing agreement with the California Infrastructure and Economic Development Bank (“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 lease will be repaid in semi -annual payments for a term of 30 years through August 1, 2050. The futu re lease payments are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
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 267,309 109,715 377,024
2030-2034 1,446,201 759,655 2,205,856
2035-2039 1,647,448 594,435 2,241,883
2040-2044 1,876,701 406,223 2,282,924
2045-2049 2,137,855 191,820 2,329,675
2050-2051 936,243 6,260 942,503
Total $9,313,985 $2,348,653 $11,854,458
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Source: City of Goleta Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024.

Prospective Additional Long Term Obligations
The City from time to time will consider entering into additional long term lease financings incident to new construction and refunding of existing obligations . Accordingly, it is possible that the City may in the future cause the issuance of issue lease revenue bonds or certificates of participation backed by General Fund lease financing payments . The City maintains a sc hedule of capital improvement needs, however, other than the Series 2025A Bonds, the City does not have any current plans for additional General Fund lease finance obligations in the next three years.

Short Term Borrowings
The City has not in recent years issued short term debt for meeting its cash flow needs.

Direct and Overlapping Debt
Contained within the City are overlapping local agencies providing public services which have issued general obligation bond and other types of indebtedness. Set forth below is a direct and overlapping debt report (the “Debt Report”) prepared by California Municipal Statistics, Inc. and dated as of December 1, 2024. The Debt Report is included for general information purposes only and excludes self -supporting revenue bonds, tax allocation bonds and non-bonded capital lease obligations. The Debt Report generally includes long term obligations sold in the public credit markets by public entities whose boundaries overlap the City’s service area. Such long term obligations are not payable from revenues of the City (except as indicted) nor are they necessarily secured by land within the City . In many cases, such obligations are payable from the general fund of the issuing agency. Neither the City nor the Authority has reviewed the Debt Report for completeness or accuracy and makes no representations in connection therewith. 190

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CITY OF GOLETA
STATEMENT OF DIRECT AND OVERLAPPING DEBT AS OF DECEMBER 1, 2024 2024-25 Assessed Valuation: $9,816,901,721

%
Applicable(1)
City’s Share
of Debt
(12/1/24)
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:

Santa Barbara Community College District 12.607% $ 5,795,258 Santa Barbara Unified School District 14.401 21,013,939 Goleta Union School District 53.013 41,495,926
Santa Barbara High School District 14.401 8,087,505
TOTAL DIRECT AND OVERLAPPINGTAX AND ASSESSMENT DEBT: $ 76,392,628

DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Santa Barbara County General Fund Obligations 8.25% $ 9,661,383 City of Goleta General Fund Obligation 100.00 9,073,135 Goleta West Sanitary District General Fund Obligation 77.274 10,003,119 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT: $ 28,737,637 Less: Santa Barbara County supported obligations 63,085 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 28,674,552

OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.00% $ 10,085,000

GROSS COMBINED TOTAL DEBT $115,215,265
NET COMBINED TOTAL DEBT $115,152,180

(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 th e City divided by the district’s total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue (including the Sales Tax Bonds), mortgage revenue and non-bonded capital lease obligations.

Ratios to 2024-25 Assessed Valuation:

Total Overlapping Tax and Assessment Debt............................................................ 0.78% Combined Gross Direct Debt ($9,073,135) ............................................................ 0.09% Gross Combined Total Debt ..................................................................................... 1.17% Net Combined Total Debt ......................................................................................... 1.17% Ratio to Redevelopment Successor Agency Incremental Valuation ($1,468,331,433):

Total Overlapping Tax Increment Debt .................................................................... 0.69%

Source: California Municipal Statistics, Inc.

Risk Management
The City insurance coverage structure is composed of a combination of pooled self -insurance, reinsurance and excess insurance which the City procures as a member of the California Joint Powers Insurance Authority (the “California JPIA”). The California JPIA is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section 6500 et seq. The purpose of the California JPIA 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.

Each member pays an annual contribution at the beginning of the coverage period . 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.
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Generally, claims through the California JPIA are pooled separately between public safety (police and fire) and general government exposures, with the payroll of each member 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. .

Primary Liability Program. For Fiscal Year 2023-24 the California JPIA’s overall coverage limit for each member, including all layers of coverage, was $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.

Workers' Compensation Program. For Fiscal Year 2023-24, the California JPIA’s pooled retention was $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 thr ough reinsurance policies, and Employer ’s Liability losses from $5 million to $10 million are pooled among members.

Currently, insurance purchased through the California JPIA includes the following:

Pollution Legal Liability Insurance. The City participates in the pollution legal liability insurance program which is available through the California JPIA. The policy covers sudden and gradual pollution of scheduled property, streets and storm drains owned by the City. Coverage is on a claims -made basis.

There is a $250,000 deductible. The California JPIA has a per member limit of $5 million.

Property Insurance . The City participates in the all -risk property protection program of the California JPIA. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the California JPIA. City property currently has all-risk property insurance protection in the amount of $41,870,728.

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 California JPIA.

Earthquake and Flood Insurance. The City purchases earthquake and flood insurance on a portion of its property . The earthquake insurance is part of the property protection insurance program of the California JPIA. City 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 . There is no requirement in the Lease Agreement for the City to procure or continue coverage for earthquake damage on the Property or any property.

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 Fiscal Year 2023-24.

See Note 9 in the Notes to the Basic Financial Statements appearing in APPENDIX C – “CITY OF

GOLETA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.”
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Employees and Labor Relations
As of June 30, 2024, the City had approximately [121] full time equivalent employees .

Substantially all of these employees are represented by one of two employee organizations. The City has never experienced a material work stoppage.]
Retirement Systems
CalPERS maintains two pension plans for the City: a Miscellaneous Plan and a PEPRA Miscellaneous. A menu of benefit provisions as well as other requirements are established by State statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. The defined pension benefit is payable monthly for life, in an amount that varies. The plans also provide death and disability benefits. These benefit provisions and all other requirements are established by state statute and C ity ordinance. See APPENDIX C – “CITY OF GOLETA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.”
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 B asic 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.

The City’s pension groups are limited because the C ity 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, and the City provides municipal services through additional contracts for such services as street, park, and landscape maintenance. Each of the pension plans, accordingly, provide for certain of the City’s miscellaneous employees.

One of the most significant changes to the state and local financial landscape is the recently enacted Public Employees’ Pension Reform Act (“PEPRA”) of 2013. While PEPRA will have no immediate impact to current pension costs, the law will reduce pension costs of virtually all public employers in the long term.

New employees hired after December 31, 2012 will be enrolled in a plan with substantially lower benefits.

In addition, new employees will be required to pay at least 50% of the pension cos ts. The City, as with virtually all public agencies in California, still has an underfunded pension plan for existing employees .

The new reform legislation will have no impact on this unfunded liability . Pension contribution rates for existing employees are expected rise over the medium term . The City will be working with labor groups to increase the amount paid by employees in order to mitigate impacts upon the City ’s overall financial condition. On April 17, 2013, the CalPERS Board of Administration approved a recommendation to change the CalPERS amortization and rate smoothing policies. Beginning with the June 30, 2013 valuations that set the 2015-16 rates, CalPERS would no longer use an actuarial value of assets and will employ an amortization and smoothing policy that will pay for all gains and losses over a fixed 30 -year period with the increases or decreases in the rate spread directly over a 5 -year period. Prior to this change, CalPERS employed an amortization and smoothing policy that spread investment returns over a 15-year period with experience gains and losses paid for over a rolling 30 -year period. After this policy change, CalPERS commenced an amortization and smoothing policy that pays for all gains and losses amortized over a 20-year period with a five-year ramp-up and five-year ramp-down period. 193

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PEPRA (i) increases the retirement age for new State, school, and city and local agency employees depending on job function, (ii) caps the annual CalPERS pension benefit payout, (iii) addresses numerous abuses of the system, and (iv) requires State, school, and certain city and local agency employees to pay at least half of the costs of their CalPERS pension benefits. PEPRA will apply to all public employers except the University of California , charter cities and charter counties (except to the extent they contract with CalPERS). Among other things, PEPRA also enacted pension spiking reform for new and existing employees, required three -year averaging of final compensation for new employees, a nd provided employers with new authority to negotiate cost -sharing agreements with current employees. PEPRA also contained limitations on the use of retired annuitants, requiring that an annuitant have a six-month break in service prior to returning to work.

The legislation created mandatory benefits tiers for new employees who have not worked for another CalPERS agency hired beginning January 1, 2013 ranging from 1.1% at age 50 to a maximum of

2.4% at age 62 for miscellaneous employees.

CalPERS’ projected employer contribution rates for the City’s Miscellaneous Plan and PEPRA Miscellaneous Safety Plan are provided by actuarial reports delivered to the City, which reports establish liability and funding requirements. The latest actuarial valuation of the plans occurred June 30, 2023 (the (“2023 Valuation”), respectively, for each of the City ’s Miscellaneous Plan and PEPRA Miscellaneous Safety Plan. There is a two -year lag between the Valuation Date and the Contribution Fiscal Year . The assets, liabilities and funded status of the plan are measured as of the valuation date; June 30, 2023. The employer contribution rate determined by the valuation is for the fiscal year beginning two years after the valuation date; in this case the City’s Fiscal Year 2024-25. This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and due to the need to provide public agencies with their employer contribution rates well in advance of the start of the fiscal year.

The Unfunded Liability is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The Unfunded Liability is rolled forward each year by subtracting the expected Payment on the Unfunded Liability for the fiscal year and adjusting for interest . The Expected Payment on the Unfunded Liability for a fiscal year is equal to the Expected Employer Contribution for the fiscal year minus the Expected Normal Cost for the year. The Employer Contribution Rate for the first fiscal year is determined by the actuarial valuation two years ago and the rate for the second year is from the actuarial valuation one year ago. The Normal Cost Rate for each of the two fiscal years is assumed to be the same as the rate determined by the current valuation. All expected dollar amounts are determined by multiplying the rate by the expected payroll for the applicable fiscal year, based on payroll as of the valuation date.

Contributions to fund the plan are comprised of two components:
· Normal Cost, expressed as a percentage of total active payroll · Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fisc al years prior to 2017-18, the Amortization of UAL component was expressed as a percentage of total active payroll. Starting with Fiscal Year 2017-18, the Amortization of UAL component is expressed as a dollar amount and invoiced on a monthly basis. There is an option to prepay this amount during July of each fiscal year. The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process . The determination of both components requires complex actuarial calculations. The calculations are based on a set of actuarial assumptions which can be divided into two categories:
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· Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates, disability rates)
· Economic assumptions (e.g., future investment earnings, inflation, salary growth rates) These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature , which cannot be expected with any certainty likely to be realized in their entirety in any given year. For example, the investment earnings at CalPERS have averaged 6.9% over the 20 years ending June 30, 2022, yet individual fiscal year returns have ranged from -23.6% to +21.3%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth experience studies every four years, with the most recent experience study completed in 2021.

The tables below show CalPERS projected employer contribution rates for the City’s Miscellaneous Plan and PEPRA Miscellaneous Safety Plan (before cost sharing) for the six years from Fiscal Year 2024-25 through Fiscal Year 2031-32. The projections assume that all CalPERS actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period . In particular, the investment return is assumed to be [6.80]% per year, net of investment and administrative expenses. The projected normal cost percentages below reflect that the City ’s Miscellaneous Plan ’s normal cost is expected to continue to decline over time as new employees are hired into lower cost benefit tiers. Future contribution requirements may differ significantly from those shown below . The actual long -term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

CITY OF GOLETA MISCELLANEOUS PLAN

PROJECTED FUTURE PENSION CONTRIBUTION RATES
FISCAL YEARS 2025 THROUGH 2031
Fiscal Year
Ended
(June 30)
Normal Cost
Contribution
Rate
UAL
Payment
2025 12.52% $379,339
2026 12.58 468,883
2028 12.60 514,000
2029 12.60 551,000
2020 12.60 638,000
2030 12.60 651,000
2031 12.60 662,000
_____________________
Source: 2023 Valuation and City of Goleta Finance Department. 195

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CITY OF GOLETA PEPRA MISCELLANEOUS PLAN

PROJECTED FUTURE PENSION CONTRIBUTION RATES
FISCAL YEARS 2025 THROUGH 2031
Fiscal Year
Ended
(June 30)
Normal Cost
Contribution
Rate
UAL
Payment
2025 7.87% $16,057
2026 7.96 35,350
2027 8.0 58,000
2028 8.0 70,000
2029 8.0 70,000
2030 8.0 70,000
2031
_____________________
Source: 2023 Valuation and City of Goleta Finance Department.

Actual gains or losses as well as changes in actuarial assumptions or methods are amortized using a 5 -year ramp up, phasing in the impact of unanticipated changes in UAL over a 5 -year period and attempting to minimize employer cost volatility from year to year. This method phases in the impact of the change in UAL over a 5 -year period in order to reduce employer cost volatility from year to year . As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years.

In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than inter est on the UAL ( i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.

Annual pension expenses are projected to continue to rise and represent a significant amount of the City’s operating budget. The City has established a Section 115 Trust to address the growing and volatile pension liabilities. In addition, the City Council resolved to appropriate the transfer of available reserves from enterprise, internal service funds into the Pension Section 115 Trust. [Discuss funding and funding goals]
As reported in the 2023 Valuation, the funding history below shows the recent history of the actuarial accrued liability, the market value of assets, the funded ratio and the annual covered payroll for City’s Miscellaneous Plan and PEPRA Miscellaneous Safety Plan. 196

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CITY OF GOLETA MISCELLANEOUS PLAN

FUNDED STATUS
FISCAL YEARS 2017 THROUGH 2023
CalPERS
Valuation
Fiscal Year
Ended
(June 30)
Accrued
Liability
Market Value
of Assets
(MV A)
Unfunded
Accrued
Liability
Funded
Ratio
Applicable
Annual
Covered
Payroll
2017 $14,342,747 $11,738,130 $2,604,617 81.8% $3,760,369 2018 16,694,471 13,477,076 3,217,395 80.7 4,328,793
2019 18,344,984 14,827,148 3,517,836 80.8 4,344,217
2020 19,992,856 15,928,975 4,063,881 79.7 4,685,409
2021 22,786,649 20,825,145 1,961,504 91.4 4,783,997
2022 24,673,544 19,378,991 5,294,553 78.5 4,597,345
2023 26,976,370 21,010,914 5,965,456 77.9 5,268,660
_____________________
Source: 2023 Valuation and City of Goleta Finance Department.

CITY OF GOLETA PEPRA MISCELLANEOUS PLAN

FUNDED STATUS
FISCAL YEARS 2017 THROUGH 2023
CalPERS
Valuation
Fiscal Year
Ended
(June 30)
Accrued
Liability
Share of
Pool’s Market
Value of
Assets (MV A)
Unfunded
Accrued
Liability
Funded
Ratio
Applicable
Annual
Covered
Payroll
2017 $ 595,184 $ 565,459 $ 29,725 95.0% $1,481,855 2018 993,724 921,236 72,488 92.7 1,677,051
2019 1,429,482 1,318,270 111,212 92.2 2,223,003
2020 1,992,546 1,815,232 177,314 91.1 2,872,737
2021 2,823,537 2,957,324 (133,787) 104.7 3,063,355
2022 3,684,170 3,230,288 453,882 87.7 4,219,743
2023 4,966,678 4,338,508 628,170 87.4 5,549,428
_____________________
Source: 2023 Valuation and City of Goleta Finance Department.

The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. V oluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amend ment becomes effective, even if the valuation date is prior to the effective date of the amendment.

See Note 6 to the basic financial statements of the City included in APPENDIX C – “CITY OF

GOLETA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.”
Reporting obligations under Governmental Accounting Standards Board Statement No. 68 (including as amended by Statement No. 71, “GASB 68”) commenced with financial statements for the fiscal year ended June 30, 2015. The City implemented this Statement in the fiscal year ending [June 30, 2015]. Under GASB 68, an employer reports the net pension liability, pension expense and deferred outflows/deferred inflows of resources related to pensions in its financial statements as part of its financial position. See APPENDIX C – “CITY OF GOLETA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.”
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Other Post-Retirement Benefits
Annual OPEB Cost and Net OPEB Obligation . The City provides postemployment health care benefits through the CalPERS cost-sharing multiple employer health care program (PEMHCA) to eligible employees. The City paid the PEMHCA minimum of $149/month for 2022 and $151/month for 2023. To be eligible for p ostretirement 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.

The City’s annual Other Post Employment Benefit (OPEB) cost (expense) is calculated based upon the Annual Required Contribution of the employer (ARC); an amount actuarially determined in accordance with parameters of GASB 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years.

The City’s net OPEB liability of $ [732,603], the number of plan members, active, inactive plan member or beneficiaries receiving benefits, and inactive pl an member entitled to but not yet receiving benefits are shown in Note 7 to the basic financial statements of the City included in APPENDIX C – “CITY

OF GOLETA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.” The City’s service cost to provide OPEB benefits has averaged $ ______ of the last five years.

As shown in the City of Goleta Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024 attached hereto as Appendix C, the net OPEB obligation for the beginning of the year ended June 30, 2023, was $732,603, and the net OPEB obligation for the end of the year ended June 30, 2024 was $________. See Note 7 to the basic financial statements of the City included in APPENDIX C – “CITY

OF GOLETA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2024.”
Investment of Funds; City’s Pooled Operating Investment Fund [The City Manager/Treasurer of the City is responsible for investing the unexpended cash in the Treasurer’s pooled operating investment fund (the “City Pool”). Responsibility for the daily investment of funds in the City Pool is delegated to the Finance Director of the Cit y. The City is basically the only participant in the City Pool; the Successor Agency is the only other participant and its participation is limited to its surplus funds not invested in the State of California Local Agency Investment Fund (LAIF) . The primary objectives, in priority order, of the City’s investment activities are safety, liquidity and yield.

Oversight and Reporting Requirements . The Treasurer provides an investment report on a monthly basis to the Finance Department and annually presents a Statement of Investment Policy (the “Investment Guidelines”) to the City Council.

On a monthly basis, the safekeeping agent provides to the City credit ratings and an independent market valuation on the City ’s holdings. This information is included in the monthly investment report presented to the City Council . Pursuant to the City ’s Statement of Investment Policy, which is adopted annually by the City Council, the City Treasurer submits to City Council, within 30 days following the end of the month, an i nvestment report, which is prepared by the Finance Director, which summarizes all securities in the portfolio and a separate listing of investment transactions occurring during the month. The report includes issuer, type of investment, date of maturity, c oupon, yield, par value, book value, market 198

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value and the source of the valuation, current book gains and/or losses, average days to maturity and quality rating of bonds. In addition, a narrative report accompanies the portfolio that addresses noteworthy items and any call features associated with the bonds in the portfolio.

On a quarterly basis, a comprehensive Investment Management Review is presented to the City Council. The review covers the credit qualities, sector and maturity distribution liquidating information, investment performance against a customized benchmark comprised of three different indices, portfolio recommendations, and information as to compliance with investment policy and State law.

In June 2024, the City engaged Chandler Asset Management to serve as our independent investment advisor, effective July 1, 2024 with the intent to procure additional expertise, increased safety and security of City assets and the potential for additional earnings within the terms of the Investment Guidelines.

Authorized Investments . Investments in the City Pool are governed by State law and further restricted by the City’s Statement of Investment Policy. The City has developed a formal investment policy that is more restrictive than the State of California Government Code. The policy is adopted annually by the City Council. The City has adhered to established policies for all investment activities. All of the City’s deposits, except certain cash balances held by fiscal agents, are entirely ins ured or collateralized . The California Government Code requires California banks and savings and loans to secure the City’s deposits by pledging government securities as collateral. The fair value of the pledged securities must equal 110% of the City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes equal to 150% of the City’s deposits. [Permitted Investments include U. S. Treasury Securities and other obligations of the U.S.

Government, its agencies and instrumentalities, including mortgage-backed securities with a fixed coupon issued by an agency of the U.S. Government; Certificates of Deposit (CDs) issued by nationally or state chartered banks, not to exceed a five -year maturity nor thirty percent (30%) of the total portfolio, and collateralized as provided in the Investment Guidelines (the City may waive collateral requirements for the portion of any deposit insured up to the amount allowed per accoun t by the Federal Deposit Insurance Corporation (FDIC)); Prime Commercial Paper of the highest numerical rating of Moody's Investment Service, Inc. or Standard & Poor ’s Corporation (S&P), not to exceed 270 days maturity nor 25% of the portfolio, from issuing corporations that are organized and operating within the United States and having total assets in excess of $500 million and having the equivalent to an “AA-” or higher rating from either Moody’s or S&P for other debt of the issuer; money market funds with portfolios consisting of one or more of the indicated legal investments and none of the prohibited investments; sweep account for the investment of overnight funds when the funds are swept into investments authorized by the Investment Guidelines; passbook accounts maintained solely to provide for ongoing operational needs shall be subject to the requirements of the Investment Guidelines; the Local Agency Investment Fund (the “State Pool”) and the Investment Trust of California, a Joint Powers Authority, doing business as CalTRUST. The City may invest in CalTRUST, a pool created by local public agencies to provide a method for local public agencies to pool their assets for investment purposes. Investments in certificates of deposit, sweep accounts and pas sport accounts shall be fully insured up to the limit set by the FDIC. Investments in certificates of deposit, sweep accounts and passport accounts in excess of the FDIC limit shall be properly collateralized as required by law.

Investments not specifically authorized in the Investment Guidelines are disallowed. Additionally, Section 53601.6 of the California Government Code disallows the following: inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Futures, options, all leveraged purchases, reverse repurchases, and speculations on interest rates are specifically not allowed by the guidelines. 199

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[Cash temporarily idle during the year was invested in demand deposits, money market funds, certificates of deposit, corporate notes, federal agencies, treasuries, and the State of California ’s Local Agency Investment Fund (LAIF).]
At October 31, 2024, the City Pool did not hold any securities which were in default, issued by an entity currently in a bankruptcy proceeding or which was not investment grade.

Pool Liquidity and Other Characteristics. As of October 31, 2024, the City’s Pool had a weighted average maturity of 128.9 days and its weighted average yield was 4.243%. For purposes of calculating weighted average maturity, the City Treasurer treats investments in LAIF maturing within one day . The City Pool ’s composition is designed with a goal of having sufficient liquid funds available to meet disbursement requirements. The composition and value of investments under management in the City Pool will vary from time to time depending on cash flow needs of the City, maturity or sale of investments, purchase of new securities, and fluctuations in interest rates.

State Budget Information
Information about the State budget is regularly available at various State-maintained websites. The Fiscal Year 2023-24 State budget and the 2024-25 State budget may be found at the website of the Department of Finance, www.dof.ca.gov, under the heading “California Budget.” Additionally, an impartial analysis of the budget is posted by the Office of the Legislative Analyst at www.lao.ca.gov. The Office of the Legislative Analyst is located at 925 L Street, Suite 1000, Sacramento, CA 95814 . To request publications call (916) 445-4656. The information referred to is prepared by the respective State agency maintaining each website and not by the City, and the City takes no responsibility for the continued accuracy of the internet addresses or for the accuracy, completeness or timeliness of information posted there, and such information is not incorporated herein by these references.

Changes in State Budget
Each year, the final State Budget, which requires approval by a two -thirds vote of each house of the State Legislature, may differ substantially from the Governor ’s original budget proposal . The State Budget will be affected by State and national economic conditions and other factors over which the City will have no control . The City cannot predict the impact that subsequ ent State budgets will have on its finances and operations
Utilities
[Gas and electricity are provided within the City by Southern California Gas Company and Southern California Edison Company. Frontier Communications supplies telephone service. The City contracts with a private company for collection of refuse. The City provides water and sewer services.] Transportation
Highways. The City is served by a well -developed transportation network which includes road, rail, and bus services. U.S. Highway 101 and numerous State Highways such as 1, 33, 135, 166, 154, 217 and 246 provide convenient access throughout the County and its municipalities.

Railroads. Amtrak railroad crosses through the County with its main line generally following the coastline, with stations in Carpinteria, Santa Barbara and Goleta. Freight transportation is also provided by several intra-state and transcontinental trucking firms. 200

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Airports. The Santa Barbara Municipal Airport, owned and operated by the City of Santa Barbara, is located approximately 10 miles west of downtown Santa Barbara on approximately 944 acres, adjacent to the Pacific Ocean, with convenient highway access from U.S. Highway 101. The airport is the regional airport for the San Luis-Santa Barbara-Ventura tri-county area. Competing airports include Burbank, San Luis Obispo, Long Beach, and Los Angeles International airports along with other airports with scheduled commercial airline service that are within approximately two hours’ drive time of the City.

Bus Service. [The Santa Barbara Metropolitan Transit District (“MTD”) operates a municipal bus system serving the cities of Goleta, Santa Barbara and Carpinteria, and the unincorporated areas of Ellwood, Isla Vista, Montecito, and Summerland. Limited commuter ser vice linking Solvang and Buellton with Goleta, Santa Barbara and the University of California, Santa Barbara is also available through the MTD.

Bus services is also provided by the Clean Air Express, providing roundtrip weekday service from Santa Maria and Lompoc to Santa Barbara and Goleta; City of Lompoc Transit, providing fixed route service in Lompoc, Vandenberg village and Mission Hills; and Santa Ynez Valley Transit, linking the cities of Buelton, Los Olivos, Santa Ynez, and Solvang.]
Education
Public instruction in the City is provided by the Goleta Unified School District. There are 9 elementary schools, 0 middle schools, and 0 high schools. Total enrollment for the last ten school years was as follows::

CITY OF GOLETA

PUBLIC SCHOOL ENROLLMENT
FOR 2014-15 THROUGH 2023-24 SCHOOL YEARS
Year Enrollment
2014-15 3,701
2015-16 3,684
2016-17 3,571
2017-18 3,541
2018-19 3,566
2019-20 3,619
2020-21 3,378
2021-22 3,381
2022-23 3,416
2023-24 3,408

Source: California Department of Education
In addition, the University of California at Santa Barbara has enrollment of approximately 23,232 full time students and offers bachelors, masters, and Ph.D. degrees in a variety of fields. There is also Santa Barbara City College, which offers associate degrees and acts as a feeder for the University of California and California State University systems as well as other four year institutions.

Recreation and Tourism
[The City’s natural, historic, and commercial attractions make it an attractive visiting s pot. The area’s natural attractions include its moderate weather, the Pacific Coast with its many beaches and harbor, and the mountains. The City is a popular destination resort for tourists.] 201

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The County offers numerous opportunities for recreation. Some popular activities are swimming, climbing, picnicking, boating, surfing, fishing, sailing, whale watching and water skiing at the beaches, lakes, and public parks within the County, camping and wine tasting. The County park system has 24 day use parks, 2 camping parks, 45 open spaces and 12 beach areas for a total of 8,595 acres. The Santa Barbara Harbor and Stearns Wharf, the oldest working wharf in the State dating back to 1872, the Santa Barbara Museum of Natural History Sea Center, Mission Santa Bar bara and the Santa Barbara Maritime Museum are each located in the City of Santa Barbara, the Natural History Museum and the Motorcycle Museum in Santa Maria, and the Return to Freedom, 300 acre wild horse sanctuary in Lompoc; are popular tourist attractions within the County.

The County is also home of the Guadalupe Beach Festival, the Santa Barbara International Film Festival, the Santa Barbara Harbor and Seafood Festival, the Santa Barbara County Vintners Festival, the Santa Barbara Wine Festival.

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APPENDIX C

CITY OF GOLETA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024

[TO COME]

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APPENDIX D

PROPOSED FORM OF BOND COUNSEL OPINION
Upon issuance of Series 2025A Bonds, Stradling Yocca Carlson & Rauth LLP, Bond Counsel, proposes to render its final approving opinions with respect to the Series 2025A Bonds in substantially the following forms:
[Date of Delivery]
Goleta Facilities Financing Authority
Goleta, California
Re: $__________ Goleta Facilities Financing Authority Lease Revenue Bonds, Series 2025A

Ladies and Gentlemen:
[To come]
Respectfully submitted,

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APPENDIX E

FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the City of Goleta (the “City”) in connection with the issuance by the Goleta Facilities Financing Authority ( the “Authority”) of $__________ Goleta Facilities Financing Authority Lease Revenue Bonds, Series 2025A (the “Series 2025A Bonds”). The Series 2025A Bonds are being issued pursuant to the Indenture, dated as of March 1, 2025 (the “Indenture”), by and among the Authority, the City and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), in order to provide funds to finance the costs of the acquisition , construction and improvement of certain transportation improvements within the jurisdiction of the City . The City covenants and agrees as follows:

Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the Holders of the Series 2025A Bonds and to assist the Participating Underwriter in complying with SEC Rule 15c2-12(b)(5).

Section 2. Definitions. In addition to the definitions set forth in the Indenture and in the Lease Agreement, dated as of March 1, 2025 (the “Lease Agreement”), by and between the Authority and the City , which apply to any capitalized terms used in this Disclosure Certificate, unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.
“Annual Report Date” shall mean March 31 of each year.
“Beneficial Owner” shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Series 2025A Bonds (including persons holding Series 2025A Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Series 2025A Bonds for federal income tax purposes.
“Dissemination Agent ” shall mean Urban Futures, Inc., or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation. “Financial Obligation” shall mean (a) a debt obligation of the City, (b) a derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation of the City, or (c) a guarantee of (i) a debt obligation of the City, or (ii) a derivative instrument described in clause (b), above; provided, however, that the term “Financial Obligation” shall not include “municipal securities” (as such term is defined in the Securities Exchange Act of 1934, as amended) as to which a “final official statement” (as such term is defined in the Rule) has been provided to the MSRB consistent with the Rule. “Holders” shall mean, while the Series 2025A Bonds are registered in the name of The Depository Trust Company, any applicable participant in its depository system, or the Owner of any Series 2025A Bond for Federal income tax purposes.
“Listed Events” shall mean any of the events listed in Section 5(a) or 5(b) of this Disclosure Certificate. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other reposi tory of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. 205

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“Official Statement” means the Official Statement dated February __, 2025, relating to the Series 2025A Bonds.
“Participating Underwriter ” shall mean Stifel, Nicolaus & Company, Incorporated, the original underwriter of the Series 2025A Bonds required to comply with the Rule in connection with offering of the Series 2025A Bonds.
“Rule” shall mean Rule 15c2-12(b)(5) adopted by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time.
“SEC” shall mean the Securities and Exchange Commission.

Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, no later than each Annual Report Date commencing March 31, 2025, with the report for Fiscal Year 2023-24, provide to the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. The Official Statement shall constitute the Annual Report for Fiscal Year 2023-24. The Annual Report may cross -reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the City’s fiscal year changes, it shall give notice of such change in t he same manner as for a Listed Event under Section 5(e). The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(e). The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder. (b) Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence.

If the City is unable to provide to the MSRB an Annual Report by the date required in sub section (a), the City will send a notice to the MSRB in substantially the form attached as Exhibit A. (c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and (ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.

Section 4. Content of Annual Reports . Each Annual Report shall contain or incorporate by reference the following:
(a) The City’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial 206

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statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) The following information with respect to the City and the Series 2025A Bonds for the fiscal year to which the Annual Report relates, which information may be provided by its inclusion in the audited financial statements of the City for such fiscal year described in subsection (a) above:
(b) [The City’s Annual Report shall include the following items, pro viding annual financial and operating data (as of the end of the preceding Fiscal Year) substantially similar to that provided in the corresponding tables and charts in the Official Statement:

1. Principal amount of each Series of Bonds outstanding.

2. City Principal Property Taxpayers;

3. City Assessed Valuations, Property Tax Rates, Secured Levies and Collection and Delinquencies;

4. General Fund Tax Revenues by Source;

5. City General Fund Balance Sheet; and

6. City General Fund Summary of Revenues and Expenditures (c) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet website or filed with the SEC. The City shall clearly identify each such other document so included by reference.]
Section 5. Reporting of Significant Events. (a) Pursuant to the provisions of this Section, the City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Series 2025A Bonds in a timely manner not later than ten business days after the occurrence of the event:
(i) Principal and interest payment delinquencies.
(ii) Unscheduled draws on debt service reserves reflecting financial difficulties. (iii) Unscheduled draws on credit enhancements reflecting financial difficulties. (iv) Substitution of credit or liquidity providers, or their failure to perform. (v) Adverse tax opinions or issuance by t he Internal Revenue Service of proposed or final determination of taxability or of a Notice of Proposed Issue (IRS Form 5701 TEB). (vi) Tender offers.
(vii) Defeasances.
(viii) Rating changes.
(ix) Bankruptcy, insolvency, receivership or similar event of the City. 207

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(x) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation, any of which reflect financial difficulties.

For purposes of the event identified in paragraph (ix), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. (b) Pursuant to the provisions of this Section, the City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material, in a timely manner not later than ten business days after the occurrence of the event:
(i) Unless described in paragraph (v) of sub section (a) of this Section, material notices or determinations by the Internal Revenue Service with respect to the tax status of the Bonds or other mat erial events affecting the tax status of the Bonds.
(ii) Modifications to rights of holders of the Bonds.
(iii) Optional, unscheduled or contingent Bond calls.
(iv) Release, substitution, or sale of property securing repayment of the Bonds. (v) Non-payment related defaults.
(vi) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms.
(vii) Appointment of a successor or additional trustee or the change of name of a trustee. (viii) Incurrence of a Financial Obligation, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation, any of which affect holders of the Bonds. (c) The Dissemination Agent shall, within one business day of obtaining actual knowledge of the occurrence of any of the Listed Events, contact the Disclosure Representative and inform such person of the event.
(d) Whenever the City obtains knowledge of the occurrence of a Listed Event described in subsection (b) of this Section, the City shall determine if such event would be material under applicable Federal securities law.
(e) Whenever the City obtains knowledge of the occurrence of a Listed Event described in subsection (a) of this Section, or determines that knowledge of a Listed Event described in subsection (b) of this Section would be material under applicable Federal securities law, the City shall, or shall cause the Dissemination Agent to, file a notice of the occurrence of such Listed Event with the MSRB, within ten business days of such occurrence.
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(f) Notwithstanding the foregoing, notice of Listed Events described in paragraph (iii) of subsection (a) of this Section need not be given any earlier than the notice (if any) of the underlying event is given to holders of affected Series 2025A Bonds pursuant to the Indenture.

Section 6. Format for Filings with MSRB. Any report or filing with the MSRB pursuant to this Disclosure Agreement must be submitted in electronic format, accompanied by such identifying information as is prescribed by the MSRB.

Section 7. Termination of Reporting Obligation . The City’s obligation under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Series 2025A Bonds. If such termination occurs prior to the maturity of the Series 2025A Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(e).

Section 8. Dissemination Agent . The City may, from time to time, appoin t or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent . The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the City pursuant to this Disclosure Certificate.

Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Series 2025A Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Series 2025A Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and
(c) the proposed amendment or waiver either (i) is approved by holders of the Series 2025A Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Series 2025A Bonds.

If the annual fin ancial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.

If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing f inancial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide inf ormation to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.
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A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).

Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deem ed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

The City acknowledges and understands that other state and federal laws, including but not limited to the Securities Act of 1933 and Rule 10b-5, promulgated under the Securities and Exchange Act of 1934, may apply to the City, and that under some circumstances compliance with this Disclosure Certificate, without additional disclosures or other such action, may not fully discharge all duties a nd obligations of the City under such laws.

Section 11. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, the sole legal remedy of any Holder or Beneficial Owner of the Series 2025A Bonds or the Pa rticipating Underwriter shall be an action to compel performance . A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture.

No Series 2025A Bondholder or Beneficial Owner may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the City satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the City shall have refused to comply therewith within a reasonable time.

Section 12. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct . The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Series 2025A Bonds.

Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and Holders from time to time of the Series 2025A Bonds, and shall create no rights in any other person or entity.

Section 14. Electronic Signature. Each of the parties hereto agrees that the transaction consisting of this Disclosure Certificate may be conducted by electronic means. Each party agrees, and acknowledges that it is such party’s intent, that if such party signs this Disclosure Certificate using an electronic signature , it is signing, adopting, and accepting this Disclosure Certificate and that signing this Disclosure Certificate using an electronic signature is the legal equivalent of having placed its handwritten signature on this Disclosure Certificate on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Disclosure Certificate in a usable format.
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Section 15. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.

Dated: March __, 2025 CITY OF GOLETA
By:

City Manager

Acknowledged as to Duties as Dissemination Agent:

URBAN FUTURES, INC.

By:_______________________________________
Authorized Officer

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EXHIBIT A TO CONTINUING DISCLOSURE CERTIFICATE

NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Obligor: City of Goleta
Name of Bonds: Goleta Facilities Financing Authority Lease Revenue Bonds Series 2025A
Date of Issuance: March __, 2025
NOTICE IS HEREBY GIVEN that the City of Goleta, California (the “City”) has not provided an Annual Report with respect to the above-named Series 2025A Bonds as required by the Continuing Disclosure Certificate, dated March __, 2025. The City anticipates that the Annual Report will be filed by __________________.

Dated:

CITY OF GOLETA
By:

Authorized Signatory

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APPENDIX F

BOOK ENTRY PROVISIONS
The following description of DTC, the procedures and record keeping with respect to beneficial ownership interests in the Series 2025A Bonds, payment of principal, interest and other payments on the Series 2025A Bonds to DTC Participants or Beneficial Owne rs, confirmation and transfer of beneficial ownership interest in the Series 2025A Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC . Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.

Neither the issuer of the Series 2025A Bonds (the “Issuer”) nor the trustee, fiscal agent or paying agent appointed with respect to the Series 2025A Bonds (the “Agent”) take any responsibility for the information contained in this Appendix F.

No assurances can be given that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Series 2025A Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Series 2025A Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Series 2025A Bonds, or that they will so do on a timely basis, or t hat DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix F. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.

1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the bonds (the “Series 2025A Bonds”). The Series 2025A Bonds will be issued as fully -registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for ea ch issue of the Series 2025A Bonds, each in the aggregate principal amount of such issue, and will be deposited with DTC.

If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.

2. DTC, the world’s largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC . DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clear ing corporations, and certain other organizations . DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ( “DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporati on, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U. S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+.

The DTC Rules applicable to its Participants are o n file with the Securities and Exchange Commission. More 213

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information about DTC can be found at www.dtcc.com and www.dtc.org . The information contained on this Internet site is not incorporated herein by reference.

3. Purchases of Series 2025A Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Series 2025A Bonds on DTC’s records. The ownership interest of each actual purchaser of each Security ( “Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records . Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2025A Bonds are to be accomplished by entries made on the bo oks of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Series 2025A Bonds, except in the event that use of the book -entry system for the Series 2025A Bonds is discontinued.

4. To facilitate subsequent transfers, all Series 2025A Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an author ized representative of DTC . The deposit of Series 2025A Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2025A Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Series 2025A Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Bene ficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Series 2025A Bonds may wish to take certain steps to augment the transmission to the m of notices of significant events with respect to the Series 2025A Bond s, such as redemptions, tenders, defaults, and proposed amendments to the Lease Agreement and the Indenture . For example, Beneficial Owners of Series 2025A Bonds may wish to ascertain that the nominee holding the Series 2025A Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

6. Redemption notices shall be sent to DTC. If less than all of the Series 2025A Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Series 2025A Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures .

Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date .

The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Series 2025A Bonds are credited on t he record date (identified in a listing attached to the Omnibus Proxy).

8. Redemption proceeds, distributions, and dividend payments on the Series 2025A Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representa tive of DTC.

DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory 214

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or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requ ested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

9. DTC may discontinue providing its services as depository with respect to the Series 2025A Bonds at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Series 2025A Bond certificates are required to be printed and delivered.

10. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Series 2025A Bond certificates will be printed and delivered to DTC.

11. The information in this Appendix F concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility fo r the accuracy thereof.

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APPENDIX G

[FORM OF MUNICIPAL BOND INSURANCE POLICY]

[TO COME]

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Goleta City CouncilFebruary 4, 2025

Goleta City Council
February 4, 2025