AGENDA
FINANCE AND AUDIT STANDING COMMITTEE MEETING
City Hall
130 Cremona Drive, Suite B
Goleta, California
Monday, February 09, 2026
3:00 P.M. – 4:30 P.M.
Conference Room # 1
Jennifer Smith, Mayor Pro-Tempore
Stuart Kasdin, Councilmember
Robert Nisbet, City Manager
Jaime A. Valdez, Assistant City Manager
Luke Rioux, Finance Director
Tony Gonzalez, Accounting Manager
Cecilia Rubio, Finance Management Assistant
__________________________________________________________________________
OPTIONS FOR PUBLIC PARTICIPATION WILL BE IN PERSON OR ONLINE VIA ZOOM ELECTRONIC PARTICIPATION: Join Meeting Electronically at:
Zoom Link: https://us06web.zoom.us/webinar/register/WN_LMJA6_8nQM-RlTqkrJBDag Webinar ID: 839 0621 1362
Passcode: 773491
For Audio Participation:
Or, dial: US: +1 669 444 9171 or +1 669 900 6833 or +1 408 638 0968 or +1 346 248 7799 or +1 719 359 4580 or +1 253 205 0468 or +1 253 215 8782 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 646 876 9923 or +1 646 931 3860 or +1 689 278 1000 or +1 301 715 8592 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799 or +1 360 209 5623 After registering, you will receive a confirmation email containing information about joining the webinar. You will be connected to audio using your computer's microphone and speakers (VoIP). A headset is recommended.
__________________________________________________________________________ PUBLIC COMMENT: PUBLIC COMMENT MAY BE PROVIDED IN PERSON, ELECTRONICALLY,
OR BY MAIL
To submit written comments for the Committee’s consideration and inclusion in the public record, email Luke Rioux, Finance Director, at [email protected] up to 9:00 A.M. prior to the Monday Standing Committee meeting date. Please include the Agenda Item Number in the subject. This meeting will be conducted in accordance with the Brown Act, Government Code Section 54953. Any member of the public may attend this meeting in person or online. Questions regarding this matter may be addressed to Cecilia Rubio, Management Assistant at: [email protected]. __________________________________________________________________________ AGENDA
I. Public Comment
II. Review of the Annual Comprehensive Financial Report for the Year Ended June 30, 2025 (Draft)
(Rioux) (30 Minutes) (Pages 1 - 256)
III. FY 2025/26 – Second Quarter (Mid-Year) Financial Review (Draft) (Rioux) (30 Minutes) (Pages 257 - 312)
IV. Monthly Investment Transaction Report (December) – Quarterly Review (Draft) (Rioux) (15 minutes) (Pages 313 – 337)
V. Next Meeting – To Be Determined
Americans with Disabilities Act: In compliance with the ADA, if special assistance is needed to participate in a Finance and Audit Standing Committee meeting (including assisted listening devices), please contact the City Clerk's office at (805) 961-7505 or email [email protected].
Notification at least 72 hours prior to the meeting helps to ensure that reasonable arrangements can be made to provide accessibility to the meeting.
ITEM II:
Annual Comprehensive Financial
Report and Single Audit Report
for the Year Ended June 30, 2025
(Draft)
1 Agenda Item X.x
CPMS CONSENT CALENDAR
Meeting Date: February 17, 2026
TO: Mayor and Councilmembers
SUBMITTED BY: Luke Rioux, Finance Director
PREPARED BY: Tony Gonzalez, Accounting Manager
Ryan Schwarz, Accountant
SUBJECT: Annual Comprehensive Financial Report for the Year Ended June 30, 2025
RECOMMENDATION:
Accept the Annual Comprehensive Financial Report for the Year Ended June 30, 2025.
BACKGROUND:
Annual Comprehensive Financial Report
The City of Goleta annually conducts an independent audit of financial transactions and issues the 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 2024/25 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 expanded to enable the community and other interested parties to obtain a better and more complete understanding of the City’s finances and operations.
These reports consist of management representations concerning the finances of the City.
All disclosures necessary to enable an understanding of the City’s financial activities have DRAFT 2
been included. The City received the highest audit opinion, an unmodified opinion, which is located in the ACFR Financial Section in the Independent Auditor’s Report, provided in Attachment 1. An unmodified opinion indicates that the financial statements fairly present the financial position of the City of Goleta as of June 30, 2025, 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.
The Single Audit is required this fiscal year due to the City meeting the threshold amount of federal grant fund expenditures of $750,000 or more in current fiscal year. The City expended approximately $12 million and is in the process of completing its Single Audit, which is anticipated to be completed by March.
DISCUSSION:
ACFR Financial Overview
This year’s audit resulted in no audit adjustments to the City’s financial statements. The City of Goleta continues to maintain strong financial health, as reflected in the ACFR. As of June 30, 2025, the City’s net position totaled $326.15 million, an increase of approximately $35.7 million or 12.3% from the prior fiscal year of $290.45 million. The DRAFT 3
largest portion of the City’s net position consisted of the City’s net investment of $255.04 million, of which 78.2% 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 found in the Management’s Discussion and Analysis (MD&A) section of the ACFR, provided in Attachment 1.
Citywide Highlights
The City’s overall total revenues from all sources equaled approximately $99.54 million, which was an increase of approximately $24.14 million or 32% from the $75.40 million in revenues the previous fiscal year. The increase is primarily related to property taxes, sales tax, and the first full year collections of the Transient Use Tax Property taxes increased by $0.44 million, or 4.6% in fiscal year 2024/25. Sales and Use Taxes increased $7.6 million, or 47.6% in fiscal year 2024/25.
The City’s overall total expenditures were $63.85 million for the fiscal year, which was an increase of $13.08 million or 25.8% 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. The overall increase is largely attributable to expenditures in Public Works related to Capital Improvement Projects.
During the fiscal year, the City issued $18.74 million in Lease Revenue Bonds and $14.66 million in Local Measure A Transportation Sales Tax Revenue Bonds through the Goleta Facilities Financing Authority, a financing authority formed by the City, to finance priority transportation and capital improvement projects. The issuance of these bonds increased cash and investments and long-term liabilities as of year-end and will support the delivery of major infrastructure projects over multiple years.
The unrestricted net position increased by $7.86 million or 23.0% for a total of $42. million (12.9% of total net position) and may be used at the City’s discretion to meet ongoing operating needs.
General Fund Highlights
During the City’s 23rd full fiscal year, the General Fund reported total revenues of $54.77 million and total expenditures of $45.90 million, resulting in excess revenues over expenditures of approximately $8.87 million. The excess revenue is due to a combination of higher than anticipated revenues and decreased spending due to further department savings and deferred special projects and Capital Improvement Program (CIP) projects supported by the General Fund, which will continue into FY 25/26.
Revenues: Actual revenues of $54.77 million received came higher than the Final Budget of $51.37 million by $3.4 million, primarily because of higher tax receipts than anticipated with property tax, sales and use tax, and transient occupancy tax. Overall actual revenues increased by approximately $9.30 million or 20.5% when compared to the prior fiscal year.
DRAFT 4
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 4.7%. Property tax exceeded budgeted projections by 3.5% or 4.5% when compared to the prior fiscal year’s actuals.
Sales Tax exceeded budgeted projections by 1.8%. While this was a small increase, overall sales tax activity remained flat when adjusted for economic data. The Transaction Use Tax (TUT) has supplemented the sales tax revenues with receipts first received for January 2024. TUT actuals exceeded projections by 12.0% for total of $12.3 million.
Transient occupancy tax (TOT) is the largest general fund revenue source, totaling $14.1 million and surpassing budgeted projections by 2.2%. Transient occupancy tax revenues experience an decrease of 0.9% when compared to the previous fiscal year, FY 23/24, which recorded $14.2 million. Further analysis can be found in the Management and Discussion Analysis section of the ACFR.
Expenditures: Actual expenditures of $45.90 million were under the Final Budget of $74.71 million by $28.81 million in all areas. Lower than anticipated expenditures were recognized by all departments. Various savings were recognized due to staff vacancies, lower expenditures associated with professional and contract services and deferred special and capital projects that are now carried over in FY 25/26. Carryovers to FY 25/26 were approximately $23.19 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 $53.18 million as of June 30, 2025. This amount was higher than the final budget projection by $20.85 million or higher by $8.39 million 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:
Fund Balance:
Non-spendable:
Prepaid Items $ 109,384
Committed 17,480,275
Assigned 26,124,383
Unassigned 9,467,780
Total Fund Balance $ 53,181,822
DRAFT 5
When comparing the total audited ending fund balance of $53.18 million to the estimated ending fund balance amount of $53.07 million provided to City Council in September 2024 during the 4th Quarter Financial Review (Unaudited), the amount is slightly lower by $109,155 due to year-end adjustments.
Included in the General Fund’s fund balance categories are City Council’s established fiscal reserve policies for funding Compensated Absences, Risk Management, Equipment Acquisition and Replacement, Public Facilities, City Hall solar removal, Litigation Defense Reserves, Section 115 Other Post Employment Benefits and Pension, 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 $26.12 million for capital improvement projects and special projects into the next fiscal year, as well as approximately $148 thousand to stabilize fair market value adjustments of investments.
All remaining fund balance is placed in the Unassigned Fund Balance, which stood at $9.47 million at fiscal year-end June 30, 2025.
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, 2025, the City had not reached its Article XIIIB spending limitation. For FY 24/25 this limit was approximately $78.83 million, with total annual appropriations subject to this limit being $45.56 million. The Independent Auditor’s Report on the Gann Spending Limit calculation can be viewed in Attachment 4.
Other Information
The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the fiscal year ended June 30, 2024. This was the 21st year the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. The 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. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we have submitted it to GFOA to determine its eligibility for another certificate.
The entire ACFR is available for viewing at City Hall, on the City’s website, and has been distributed to the City Council.
FINANCE COMMITTEE REVIEW:
DRAFT 6
The Finance and Audit Standing Committee met to review the ACFR for the Year Ended June 30, 2025 on February 9, 2026.
FISCAL IMPACTS:
There is no fiscal impact associated with this item.
LEGAL REVIEW BY: Isaac Rosen, City Attorney
APPROVED BY: Robert Nisbet, City Manager
ATTACHMENTS:
1. Annual Comprehensive Financial Report for June 30, 2025
2. Generally Accepted Government Auditing Standards Letter
3. Statement of Auditing Standards Letter
4. Independent Accountant’s Report on Gann Spending Limit
5. Presentation
DRAFT 7
ATTACHMENT 1:
Annual Comprehensive Financial Report for June 30, 2025 DRAFT 8
130 Cremona Drive
Goleta, California
93117
805-961-7500
www.CityofGoleta.org
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
City of Goleta
Painting by Chris Potter
of the Ellwood Bluffs
Fiscal Year Ended
June 30, 2025
DRAFT 9
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 10
City of Goleta, California
Annual Comprehensive Financial Report
With Report on Audit
by Independent
Certified Public Accountants
Fiscal Year Ended June 30, 2025
Prepared by:
Finance Department
DRAFT 11
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 12
INTRODUCTORY SECTION
DRAFT 13
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 14
City of Goleta
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................. i Organization Chart ............................................................................................................... xii List of Principal Officials ...................................................................................................... xiii GFOA Certificate of Achievement for Excellence in Financial Reporting ............................ xiv
FINANCIAL SECTION
Independent Auditor’s 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 the Governmental Funds-Balance Sheet to the Statement of Net Position ........................................................................................................ 26 Statement of Revenues, Expenditures, and Changes in Fund Balances ................... 27 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................... 29 Fiduciary Fund:
Statement of Fiduciary Net Position ........................................................................... 30 Statement of Changes in Fiduciary Net Position ........................................................ 31 Notes to the Basic Financial Statements ............................................................................ 32 Required supplementary information
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:
General Fund .................................................................................................................. 74 Transportation Facilities DIF Special Revenue Fund ........................................................ 75 Local STIP Special Revenue Fund ................................................................................... 76 TIRCP Special Revenue Fund .......................................................................................... 77 Federal Transportation Program Special Revenue Fund .................................................. 78 Schedule of Proportionate Share of Net Pension Liability and Related Ratios as of the Measurement Date ......................................................................................... 79 Schedule of Pension Contributions .................................................................................. 80 Schedule of Changes in Net OPEB Liability and Related Ratios ..................................... 81 Schedule of OPEB Contributions ..................................................................................... 83 DRAFT 15
City of Goleta
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Supplemental information
Schedules of Major Capital Projects Funds Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Lease Revenue Bond Capital Project Fund ................................................................. 84 Sales Tax Bonds Capital Project Fund ........................................................................ 86 Nonmajor Governmental Special Revenue Funds - Descriptions ..................................... 87 Nonmajor Governmental Funds:
Combining Balance Sheet ......................................................................................... 91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................. 101 Schedules of Nonmajor Governmental Funds Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Gas Tax Special Revenue Fund ................................................................................ 111 Transportation Special Revenue Fund....................................................................... 112 Road Maintenance and Rehabilitation Special Revenue Fund .................................. 113 Measure A Special Revenue Fund ............................................................................ 114 Measure A Grants Special Revenue Fund ................................................................. 115 Solid Waste Program Special Revenue Fund ............................................................ 116 Public Safety Donations Special Revenue Fund ........................................................ 117 County Fire DIF Special Revenue Fund .................................................................... 118 Library Facilities DIF Special Revenue Fund ............................................................. 119 Sheriff Facilities DIF Special Revenue Fund .............................................................. 120 Housing in-Lieu Special Revenue Fund ..................................................................... 121 Storm Drain DIF Special Revenue Fund .................................................................... 122 Environmental Programs Special Revenue Fund ...................................................... 123 Fire Facilities DIF Special Revenue Fund .................................................................. 124 Long Range Development Plan Special Revenue Fund ............................................ 125 Public Safety Special Revenue Fund ......................................................................... 126 Monarch Butterfly Habitat Management Plan Special Revenue Fund ........................ 127 Solid Waste Recycling Special Revenue Fund .......................................................... 128 RSTP Special Revenue Fund .................................................................................... 129 Comstock Plover Endowment Special Revenue Fund ............................................... 130 Miscellaneous Grants Special Revenue Fund ........................................................... 131 Developer Agreement Special Revenue Fund ........................................................... 132 Bicycle and Pedestrian DIF Special Revenue Fund ................................................... 133 California Library Grants Special Revenue Fund ....................................................... 134 CDBG Special Revenue Fund ................................................................................... 135 HSIP Special Revenue Fund ..................................................................................... 136 Street Lighting Special Revenue Fund....................................................................... 137 PEG Special Revenue Fund ...................................................................................... 138 LSTP Special Revenue Fund .................................................................................... 139 Housing and Community Development Special Revenue Fund ................................. 140 FHWA – FEMA Reimbursement Special Revenue Fund ........................................... 141 OTS Public Safety Special Revenue Fund ................................................................ 142 Certified Access Specialist Special Revenue Fund .................................................... 143 HMGP Special Revenue Fund ................................................................................... 144 DRAFT 16
City of Goleta
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Library Services Special Revenue Fund .................................................................... 145 County Per Capita – Goleta Library Special Revenue Fund ...................................... 146 Buellton Library Special Revenue Fund ..................................................................... 147 County Per Capita – Buellton Library Special Revenue Fund .................................... 148 Solvang Library Special Revenue Fund ..................................................................... 149 County Per Capita - Solvang Library Special Revenue Fund ..................................... 150 Miscellaneous Grants Library Special Revenue Fund ................................................ 151 Public Administration Facilities DIF Special Revenue Fund ....................................... 152 Community Center Special Revenue Fund ................................................................ 153 Affordable Housing DIF Special Revenue Fund ......................................................... 154 Park DIF Special Revenue Fund ............................................................................... 155 Active Transportation Program Special Revenue Fund ............................................. 156 Cal-Fire Grants Special Revenue Fund ..................................................................... 157 Quimby Special Revenue Fund ................................................................................. 158 United States Department of Agriculture Special Revenue Fund ............................... 159
STATISTICAL SECTION
Financial Trends:
Net Position by Component ............................................................................................ 161 Changes in Net Position ................................................................................................. 162 Fund Balances of Governmental Funds ......................................................................... 164 Changes in Fund Balances of Governmental Funds ....................................................... 166 Revenue Capacity:
Assessed Value and Actual Value of Taxable Property .................................................. 168 Direct and Overlapping Governments Property Tax Rates ............................................. 169 Principal Property Taxpayers ......................................................................................... 170 Property Tax Levies and Collections .............................................................................. 171 Revenue and Rate of Transient Occupancy Tax ............................................................ 172 Principal Transient Occupancy Tax Payers .................................................................... 173 Debt Capacity:
Ratios of Outstanding Debt by Type ............................................................................... 174 Direct and Overlapping Governmental Activities Debt .................................................... 175 Computation of Legal Debt Margin ................................................................................. 176 Demographic and Economic Information:
Demographic and Economic Statistics ........................................................................... 177 Principal Employers ........................................................................................................ 179 Operating Information:
Full-time and Part-time City Employees by Function ...................................................... 180 Operating Indicators by Function .................................................................................... 181 Capital Asset Statistics by Function ................................................................................ 182 DRAFT 17
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 18
CITY COUNCIL
Paula Perotte
Mayor
Stuart Kasdin
Mayor Pro Tempore
District 4
Luz Reyes-Martín
Councilmember
District 1
James Kyriaco
Councilmember
District 2
Jennifer Smith
Councilmember
District 3
CITY MANAGER
Robert Nisbet
December 22, 2025
To the Honorable Mayor, Councilmembers, and Residents of the City of Goleta:
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Goleta (City) for the fiscal year that ended June 30, 2025. The report was prepared by the City’s Finance Department in conformance with the principles and standards established 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 independent audit conducted 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 designed to safeguard the City’s assets and support the preparation of reliable financial statements in conformity with GAAP. These controls provide reasonable, rather than absolute, assurance that the City’s financial statements are free from material misstatement.
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 provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025, are free of material misstatement. This audit involved a comprehensive process, including the examination of evidence on a test basis supporting the amounts, evaluation of accounting principles applied and disclosures in the financial statements, assessment of the overall accounting principles used and significant estimates made by management, and evaluation of 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, 2025, confirming that these statements are fairly presented in conformity with GAAP. The independent DRAFT 19
auditor’s report can be found at the beginning of the Financial Section of this report.
In alignment with the requirements of GASB Statement No. 34, this ACFR provides a comprehensive 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 complements the MD&A and offers additional context for the report which should be read in conjunction. The MD&A directly follows the independent auditor’s report.
REPORT ORGANIZATION
The report is organized into three key 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 multi-year data on financial and demographic information. This information includes financial trends, revenue capacity, debt capacity, demographics, and economic and operational metrics, providing a comprehensive view of the City’s historical performance and current standing.
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. Encompassing approximately 8 square miles in southern Santa Barbara County, Goleta is home to a vibrant and diverse population of approximately 32,747 residents. The City is adjacent to the City of Santa Barbara and the University of California, 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 consists of four members elected by district for staggered four-year terms of office, and one Mayor elected at large to serve a four-year term. The Mayor Pro Tempore is selected annually amongst its members by the Council to serve a one-year term.
The City Council acts as the legislative and policy-making body of the City, enacting laws and initiatives to promote the community’s general welfare. 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, appointed by the Council, provides legal guidance under a contractual agreement. The City Manager appoints all other City staff.
DRAFT 20
City Services
The City provides essential municipal services through a combination of contracts and direct management. Services include 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 Goleta.
There are approximately 550 acres of parks and open space within City limits. The City owns the Goleta Public Library and assumed direct management and operation of the Goleta Library in FY 2018/19 and created a new Library Zone 4 on behalf of the County of Santa Barbara. Beginning July 1, 2019, the City also assumed direct management and operation of the libraries in the City of Buellton and the City of Solvang. On January 1, 2023, the City assumed direct management and operations of the Goleta 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 formally adopting an annual operating and capital budget prior to July 1st of each year in conjunction with annual work programs of each department. The adopted two-year budget plan includes an operating and capital budget for the first year, while the second-year estimates serve as a baseline for discussion and are updated during the mid-cycle budget review process. The adopted budget is the foundation for the City of Goleta’s financial planning and control system.
Departmental appropriation requests are submitted to the City Manager, who develops a proposed budget. The proposed budget is presented at public workshops conducted by the City Council. The City Council reviews and formally adopts the budget during a public hearing. The final budget is approved at the fund, department, program, and line-item levels.
The City Council regularly reviews the financial activity, comparing actual revenues and expenditures against the original adopted budget. Adjustments are made as necessary to ensure expenditures align with anticipated revenues and remain within available resources. 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. Within departments, the City Manager has delegated authority to approve transfers of appropriations between programs and among various appropriation units (e.g., salaries and benefits, services and supplies, and capital outlay) within programs, except for special designations or projects.
Unexpended appropriations for capital projects, one-time special projects, and grant-funded programs that span multiple fiscal years on a “project-length” basis are reviewed by the City Manager and recommended for carryover into the next fiscal year, subject to City Council approval.
Internal Controls
The City’s management holds the primary responsibility for establishing 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.
DRAFT 21
The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the costs of a control should not exceed the 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 tasked with ensuring compliance with all applicable laws and regulations. Management conducts periodic evaluations of the internal control framework to maintain its effectiveness and adapt to emerging risks and regulatory changes.
MAJOR INITIATIVES AND ACCOMPLISHMENTS
During Fiscal Year 2024/25, the City of Goleta implemented and completed a range of projects, programs, and initiatives 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:
Community Development and Housing
Adopted the revised Housing Element (2023–2031) with rezones and HCD certification. Approved key policies such as the Tenant Protection Urgency Ordinance, Affordable Housing Implementation Policy, and EV Reach Code.
Completed approvals for major projects, including Camino Real SPA, Medical Office Buildings, and a mixed-use development on Calle Real.
Completed installation of 17 EV charging stations at City Hall.
Public Safety and Emergency Preparedness
Negotiated a multi-year agreement with the Santa Barbara County Sheriff’s Department for police services.
Updated the City’s Emergency Operations Plan and Hazard Mitigation Plan, securing FEMA approval.
Implemented a High-Fire Risk Areas Ordinance and Noise Ordinance. Advanced the Homelessness Strategic Plan, increasing reserved shelter beds and assisting with permanent supportive housing projects like Buena Tierra. Restored CERT & LISTOS programs
Parks, Recreation, and Library Services
Finalized the Stow Grove Park Draft Master Plan and improvements at Armitos Park, Community Garden, and Jonny D. Wallis Park Splash Pad.
Secured $4.2M in grant funding for critical infrastructure upgrades at the Goleta Valley Library.
Transitioned library services to a new management system while maintaining Black Gold partnerships.
Implementation of Senior Programming at Goleta Community Center DRAFT 22
Launch of Online Facility Reservation System
Economic Development and Community Engagement
Held the second bilingual LEAD Goleta Academy.
Launched the “Go Green Goleta” campaign and GoodLandGoodShopping.com business directory.
Held the annual Goleta Old Town Holiday Parade and annual district Coffee & Community events.
Partnered with the South Coast Chamber for “Meet Me in Old Town” initiatives. Partnered with the Greater Hispanic Chamber of Commerce for the Mexican Independence Day Festival at the Goleta Community Center. Held the CycleMAYnia’s Mayor’s Ride in Old Town touring the Hollister Restriping Project. Relaunch the Know Your District Campaign for 2024 Election.
Governance, Technology, and Workforce Initiatives
Launched a searchable online public document portal.
Implemented Online AB1234 Ethics Training for elected/appointed officials. Updated the 2015 Employee Compensation Survey and conducted successful union negotiations with SEIU.
Implemented a new 1% transaction and use tax, effective January 2024, and updated cannabis and short-term rental ordinances for increased compliance. Enhanced cybersecurity protections and procured a new IT Managed Services Agreement.
Completed rollout of the NEOGOV training system and developed a Workplace Violence Protection Plan.
Capital Improvements, Infrastructure and Sustainability Completed the San Jose Creek Multipurpose Path (Middle Extents) and secured ATP funding for Northern and Southern Extents.
Awarded the 2023 Pavement Rehabilitation Project and designed the 2024 Pavement Rehabilitation Project.
Obtained permits for the Ellwood Mesa Wildfire Risk Reduction and Monarch Butterfly Phase 1 projects.
Implemented Winter Storm Emergency Projects and citywide encampment cleanups. Developed capital replacement reserve targets for all City-owned facilities. Conducted structural assessments of the Historic Train Depot and the Goleta Community Center.
Completed the seismic retrofit of the Goleta Community Center and finalized designs for ADA improvements.
Designed and implemented streetlight engineering standards and a replacement program. Resurfaced or paved 4.6 centerline miles of pavement and completed designs for future pavement rehabilitation projects.
Installed RRFBs at Calle Real and Fairview and upgraded traffic signals along Hollister Avenue.
Completed citywide water quality characterization (Phase I).
DRAFT 23
Began construction of the Goleta Train Depot and achieved significant milestones in the construction of the Goleta Train Depot, including the completion of structural framing and the 'topping off' ceremony held in June 2025.
For a comprehensive list of the City of Goleta’s accomplishments and initiatives, please visit our annual work programs available on the City’s website at: https://www.cityofgoleta.org/yourcity/city-manager-s-office/department-annual-work-programs
ECONOMIC CONDITION AND OUTLOOK
U.S. Economy
National economic forecasts indicate that the U.S. economy is transitioning into a period of moderating growth, with conditions expected to soften through early 2026 before stabilizing later in the year. According to the December 2025 UCLA Anderson Forecast, overall economic activity continues to demonstrate resilience, but growth is increasingly uneven across sectors, with strength concentrated in high-productivity industries while interest-sensitive sectors face ongoing headwinds.
Inflation has declined substantially from its 2022 peak but is expected to remain above long-term targets, reflecting persistent services-related cost pressures and tariff-related price effects. As a result, borrowing costs are anticipated to remain elevated relative to pre-pandemic levels, which is expected to continue constraining capital investment and interest-sensitive economic activity. Labor market conditions remain relatively strong, though job growth has slowed and is expected to moderate further over the near term.
On balance, national forecasts do not anticipate an immediate recession but instead point to an economic environment characterized by slower growth, sustained cost pressures, and elevated uncertainty. For the City of Goleta, these conditions may contribute to continued pressure on construction and labor costs, moderate growth in economically sensitive revenues such as sales tax and Transient Occupancy Tax, and higher financing costs for capital improvement projects.
Accordingly, the City continues to emphasize conservative revenue assumptions, disciplined expenditure management, and long-term financial planning to maintain fiscal stability in a changing economic environment.
State of California Economy
On November 19, the Legislative Analyst’s Office (LAO) released its Fiscal Outlook for 2026–27, projecting an approximately $18 billion General Fund shortfall. While General Fund revenues are expected to increase by $11 billion between FY 2024–25 and FY 2026–27, nearly all of this gain is offset by constitutionally required expenditures, primarily Proposition 98 education funding and Proposition 2 debt service and reserve requirements. Together, these obligations account for approximately $10 billion of the projected revenue growth. In addition, rising costs related to pensions, Medi-Cal, and the Department of Corrections are estimated to add approximately $6 billion in ongoing expenditures.
California’s fiscal outlook continues to be shaped by its heavy reliance on economically volatile revenue sources, including personal income taxes, capital gains, and corporate taxes. Over the past three fiscal years, the Legislature has addressed budget deficits of $27 billion in FY 2023–24, $55 billion in FY 2024–25, and $43 billion in FY 2025–26. These deficits followed historically large surpluses of $97.5 billion in FY 2021–22 and $76 billion in FY 2022–23. Looking ahead, the LAO DRAFT 24
projects ongoing structural deficits, ranging from $15 billion to $25 billion annually through FY 2028– 29, absent policy changes.
In addition, statewide economic forecasts indicate that California’s economic performance remains uneven across sectors. While high-productivity industries, including technology- and research-driven sectors, continue to attract investment and generate income growth, employment and activity in construction, hospitality, retail, and other labor-intensive sectors remain under pressure. This sectoral imbalance contributes to continued volatility in state revenues and reinforces the risk that recent revenue strength may not be evenly distributed or sustained.
In parallel with these economic challenges and opportunities, the State has launched the California Jobs First Council in March 2024, initiating a comprehensive strategy to strengthen California’s economy. This effort produced the Economic Blueprint, a 10-year strategic plan aimed at creating, attracting, and expanding access to high-quality jobs across the state. Over the past four years, in collaboration with the Legislature, the Governor has advanced the Regional Investment Initiative, allocating $39 million to pilot projects that support coordinated, sector-focused development.
The Central Coast region has been identified as a priority area of investment within this framework, encompassing all five State-identified strategic sectors: AgTech, Life Sciences, Semiconductors, Space and Defense, and Advanced Manufacturing. Over the next several years, significant resources and strategic efforts are expected to be directed toward building these sectors and expanding the regional workforce, positioning the Central Coast as a vital contributor to California’s long-term economic resilience and innovation. For local governments, including the City of Goleta, the State’s fiscal constraints and economic development priorities may influence the availability, timing, and structure of future grant funding and state-supported programs.
Local Economy
The City of Goleta benefits from a diversified and stable local economy supported by residential development, higher education and research activity, professional services, manufacturing, retail, and visitor-serving uses. The City plays an important role in the South Coast regional economy, particularly in education, technology-adjacent industries, professional services, and tourism.
Property tax revenues continue to provide a strong and reliable foundation for the City’s finances.
For tax year 2025–26, Goleta’s taxable assessed value increased to approximately $10.2 billion, representing 4.3 percent year-over-year growth, driven by new construction, ownership changes, and the annual Proposition 13 inflationary adjustment. While higher interest rates have slowed real estate transaction activity, assessed values remain elevated, contributing to ongoing revenue stability.
Sales tax revenues have moderated following the volatility experienced in prior years and have largely returned to a pattern of modest and uneven growth. Business-to-business and construction-related sectors have demonstrated relative strength, while consumer-oriented categories reflect more cautious spending behavior. Compared to broader countywide trends, Goleta’s sales tax performance has remained relatively resilient, supported by a diversified local tax base.
Transient Occupancy Tax (TOT) revenues remain elevated, supported by strong average daily room rates and steady visitor demand. However, growth has begun to level off as travel patterns normalize and broader economic uncertainty affects discretionary spending. As a result, TOT DRAFT 25
revenues are expected to remain relatively flat in the near term and continue to be sensitive to regional and national economic conditions.
Beginning in FY 2024–25, the City received the first full fiscal year of revenues from the voterapproved 1 percent transaction and use tax, representing a significant structural enhancement to the City’s revenue base. This locally controlled revenue source reduces reliance on more economically sensitive revenues and strengthens the City’s capacity to address deferred maintenance, fund priority capital improvement projects, and maintain service levels over time.
Labor market conditions remain relatively strong. According to data from the California Employment Development Department, Goleta’s unemployment rate for calendar year 2023 was
2.7 percent, compared to 4.1 percent for Santa Barbara County and 4.8 percent statewide. While job growth has moderated, low unemployment continues to contribute to upward pressure on wages and contracted service costs.
High housing costs and broader cost-of-living pressures continue to influence local economic conditions. Elevated home prices and rental costs contribute to workforce challenges, including employee turnover and recruitment difficulties for local businesses and public agencies. These pressures can increase wage demands, affect business operating costs, and limit the availability of workers across key sectors of the local economy.
Commercial real estate conditions in Goleta remain generally stable, with office and industrial vacancy rates below many regional benchmarks and continued demand for specialized office, research, and flex space. Retail leasing activity remains active but increasingly focused on smaller-format and service-oriented tenants. From a fiscal perspective, property tax revenues are largely insulated in the near term due to Proposition 13 protections, though prolonged softness in certain commercial segments could affect long-term valuation growth and development activity.
At the same time, local cost pressures remain elevated. Labor, contracted services, and construction-related costs continue to exceed pre-pandemic levels, affecting both operating budgets and capital programs. Consistent with these conditions, the City’s recently adopted twoyear budget emphasizes conservative revenue assumptions, targeted investment in infrastructure and deferred maintenance, and the prudent use of voter-approved revenues to support long-term fiscal sustainability.
Budget Challenges and Financial Strategy
The City of Goleta continues to face structural cost pressures related to labor, retirement obligations, contracted services, and construction, which remain elevated relative to prepandemic levels. These pressures affect both operating budgets and long-term capital planning and require ongoing prioritization and fiscal discipline.
A significant ongoing challenge for the City is addressing deferred maintenance and major infrastructure needs while managing the effects of construction cost escalation. Through the FY 2025-26 and FY 2026-27 budget adoption process, the City refined its Capital Improvement Program to focus on active, high-priority projects, reclassify or defer lower-priority initiatives, and better align project timing with available funding and staff capacity. Despite these efforts, unfunded and partially funded capital needs remain, reinforcing the importance of strategic sequencing and long-term financial planning.
DRAFT 26
To advance critical infrastructure projects, the City issued Lease Revenue Bonds and Transportation Sales Tax Revenue Bonds in 2025, generating approximately $35.7 million in project proceeds to fund transportation and public infrastructure improvements. The adopted budget incorporates the resulting ongoing debt service obligations and reflects a deliberate policy decision to leverage long-term financing for projects that provide lasting community benefit while preserving liquidity and reserves.
At the same time, the City remains attentive to revenue sensitivity and volatility, particularly in economically driven sources such as sales tax and Transient Occupancy Tax. Conservative revenue assumptions continue to be applied in the City’s multi-year forecasts, consistent with guidance from external revenue consultants and recent trend data.
In addition, the City is evaluating lawful and compliance-based strategies to improve local sales and use tax allocation accuracy, particularly for major construction projects and large material purchases occurring within the City. These efforts focus on coordination with developers, contractors, and vendors to ensure proper tax reporting consistent with California Department of Tax and Fee Administration requirements. While these initiatives are not assumed in the City’s revenue forecasts, they represent a proactive approach to minimizing allocation leakage and protecting locally generated revenues.
Complementing these revenue preservation efforts, the City has initiated a comprehensive rate study for stormwater, solid waste, and streetlight assessments. In December 2025, the City selected the firm Raftelis to analyze current rate structures and identify sustainable funding models. This initiative is critical for ensuring that fee-based revenues adequately support the longterm operations, maintenance, and capital needs of this specific infrastructure, thereby reducing reliance on the General Fund for cost-recoverable services.
Together, these actions reflect a shift toward intentional capital financing, disciplined budgeting, and revenue stewardship. While fiscal challenges remain, the City’s adopted two-year budget, updated Capital Improvement Program framework, and recent financing actions position Goleta to manage near-term pressures while maintaining long-term financial stability and flexibility.
Long-Term Financial Planning
The City of Goleta integrates long-term financial planning into its annual and multi-year budget process to support fiscal sustainability, maintain service levels, and align financial resources with City Council priorities. As part of each budget cycle, the City Council reviews updated multi-year financial forecasts for the General Fund and the Capital Improvement Program (CIP), which are used to evaluate the affordability and long-term impacts of policy, staffing, and capital investment decisions.
The General Fund forecast focuses on a five-year planning horizon and incorporates conservative assumptions for economically sensitive revenues, ongoing expenditure commitments, reserve requirements, and known cost drivers such as labor, pensions, and contracted services. The CIP forecast similarly evaluates project funding sources, cash flow, and long-term sustainability, including the use of voter-approved revenues, grants, and debt financing. Together, these forecasts provide a structured framework for identifying potential structural imbalances, assessing financial risk, and guiding prioritization decisions over time.
In addition to its standard multi-year forecasts, the City uses longer-range financial planning tools to inform strategic discussions related to infrastructure investment, deferred maintenance, and DRAFT 27
reserve adequacy. These tools are updated periodically and are intended to support high-level decision-making rather than serve as fixed financial commitments. As part of this approach, the City has strengthened its capital planning framework in recent years by refining reserve policies, establishing capital replacement targets for City-owned facilities, and aligning the CIP more closely with available funding, staff capacity, and long-term financial constraints.
Long-term financial planning is also closely integrated with the City’s adopted financial policies, including reserve targets, debt management guidelines, and liquidity objectives. This integrated approach allows the City to balance near-term operational needs with long-term obligations, manage fiscal volatility, and maintain flexibility to respond to changing economic conditions.
Through disciplined forecasting, policy-driven decision-making, and ongoing monitoring, the City is better positioned to sustain essential services, invest in critical infrastructure, and preserve financial stability over the long term..
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 established Section 115 Trusts for both pensions and retiree health care liabilities and transferred reserves held to these trusts.
Future funding policies will be considered and implemented in the next few fiscal years.
DRAFT 28
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, 2025, the City had not reached its Article XIIIB spending limitation of $78,831,106.
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, 2024. That was the 21st 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 2023/24 and 2024/25. 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
DRAFT 29
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 30
Citizens of Goleta City Council City Manager General Government Department Finance Department General Services Departmen Neighborhood Services Department Planning and Environmental Review Department Public Works Department P City Attorney Sheriff Services* Animal Services* Parking Enforcement* Fire District Liaison (*Contract) Engineering Capital Projects Streets Maintenance Parks Maintenance Open Space Mgmt Street Lighting Maint Environmental Services Traffic Ops & Maint Current Planning Advance Planning Building Services* Affordable Housing Sustainability PER Commissions Parks Recreation Library Community Center Homelessness Emergency Services Grants Programs City Customer Response Facilities Management Fleet Management Information Technology Purchasing Financial Administration Budget & Financial Accounting/AP/AR Treasury/Debt Payroll Business Licenses RDA Successor City Manager City Clerk Community Relations Human Resources/ Risk Management Economic Development Support Services City of Goleta Organizational Chart By Function -xiiDRAFT 31 -xiiiCity of Goleta
List of Principal Officials
Fiscal Year Ended June 30, 2025
CITY COUNCIL
Paula Perotte, Mayor
Stuart Kasdin, Mayor Pro Tempore, District 4
Luz Reyes Martin, Councilmember, District 1
James Kyriaco, Councilmember, District 2
Jennifer Smith, Councilmember, District 3
CITY MANAGER
Robert Nisbet
CITY ATTORNEY
Isaac Rosen
EXECUTIVE MANAGEMENT
(in alphabetical order)
Deborah Lopez, City Clerk
Jaime Valdez, Assistant City Manager
Jennifer Jennings, Human Resources/Risk Manager
JoAnne Plummer, Neighborhood Services Director
Kelly Hoover, Community Relations Manager
Lt. Frank Vasquez, Chief of Police
Luke Rioux, Finance Director
Luz ‘Nina’ Buelna, Public Works Director
Matthew Fore, General Services Director
Peter Imhof, Planning & Environmental Review Director
DRAFT
Winnie Cai, Assistant City Attorney
32 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Goleta
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
-xivDRAFT 33
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 34
FINANCIAL SECTION
DRAFT 35
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 36
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
-1-
Independent Auditor’s Report
To the Honorable City Council
City of 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 year ended June 30, 2025, 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 referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, 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, issued by the Comptroller General of the United States (Government Auditing Standards). 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.
Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2025, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. Our opinions are not modified with respect to this matter.
DRAFT 37
-2-
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 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 Government Auditing Standards 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 Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.
Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’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.
DRAFT 38
-3-
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and schedules 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 GAAS, 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 purposes of additional analysis and are not a required part of the basic financial statements. Such 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 GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report. 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.
DRAFT 39
-4-
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2025 on our consideration of 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 the City’s 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 City’s internal control over financial reporting and compliance.
San Bernardino, California
December 22, 2025
DRAFT 40
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-5-
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, 2025. 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 related notes that follow this section.
FINANCIAL HIGHLIGHTS
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 $326.15 million (net position). Of this amount, $42.00 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 general use.
The City’s total revenue from all governmental activities equaled $99.54 million, an increase of $24.1 million or approximately 32.0% compared to $75.4 million from the previous fiscal year. The increase is primarily related to grants, the 1% transaction and use tax, reported within the sales and use taxes revenue category, and development impact fees.
Sales and use tax revenues increased by $7.6 million, or 47.6%, in the 2025 fiscal year to $23.58 million. The increase was primarily driven by the first full fiscal year of the 1% transaction and use tax that went into effect on January 1, 2024. Transient occupancy tax (TOT) revenues decreased by $(124) thousand, or (0.9)%, to $14.11 million in the 2025 fiscal year. The minimal decrease reflects a normalization in tourism activity (occupancy rates) and average daily rates. The City’s total expenditures on all programs totaled approximately $63.85 million, an increase of 25.8%, or approximately $13.08 million, compared to the previous fiscal year's $50.77 million. The overall increase is largely attributable to expenditures in Public Works related to Capital Improvement Projects.
During the fiscal year, the City issued $18.74 million in Lease Revenue Bonds and $14.66 million in Local Measure A Transportation Sales Tax Revenue Bonds through the Goleta Facilities Financing Authority, a financing authority formed by the City, to finance priority transportation and capital improvement projects. The issuance of these bonds increased cash and investments and long-term liabilities as of year-end and will support the delivery of major infrastructure projects over multiple years. The General Fund reported an ending fund balance of approximately $53.18 million, an increase of $8.39 million from the $44.79 million ending fund balance of the fiscal year 2024. The increase was due to total revenues exceeding expenditures. The $53.18 million fund balance includes committed funds of $17.48 million, including the 33% contingency reserve; the assigned fund balance of $26.12 million; and $9.47 million remaining as an unassigned fund balance on June 30, 2025.
DRAFT 41
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-6-
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 and Use Tax, Transient Occupancy Tax, Franchise Fees, and Cannabis Business Tax finance approximately 50% of these activities. It should be noted that the City does not have business-type activities.
DRAFT 42
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-7-
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, Transportation Facilities DIF, TIRCP, Federal Transportation Program, Coronavirus State & Local Fiscal Recovery Fund (SLFRF), Lease Revenue Bonds, Sales Tax Bonds, 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 33 of this report.
DRAFT 43
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-8-
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 net OPEB Post-Employment Benefits (OPEB) liability and related ratios, and schedule of OPEB contributions. RSI can be found starting on page 76 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 85 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 161 of this report.
GASB Pronouncements
For the year ended June 30, 2025, the financial statement include the adoption of GASB Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The requirements of this statement are effective for fiscal years beginning after December 15, 2023. For additional information, refer to the Notes to the Financial Statements, Note 5. Additionally, GASB Statement No. 102, Certain Risk Disclosures, was adopted with the primary objective to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this statement are effective for fiscal years beginning after June 15, 2024. Note 9 will contain information about the City’s Risk Management.
DRAFT 44
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-9-
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, 2025, with comparative totals as of June 30, 2024. 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, 2025 and 2024
Governmental Activities
2025 2024
Assets:
Current and other assets $ 129,333,271 $ 95,228,512
Capital assets 264,966,171 228,115,036
Total Assets 394,299,442 323,343,548
Deferred Outflows of Resources:
Pension related 3,517,082 3,891,756
OPEB related 210,844 221,091
Total Deferred Outflows of Resources 3,727,926 4,112,847 Liabilities:
Current and other liabilities: 16,573,755 17,495,220
Long Term Liabilities:
Due in one year 1,797,751 1,277,309
Due in more than one year 51,738,262 16,179,663
Total Liabilities 70,109,768 34,952,192
Deferred Inflows of Resources:
Pension related 29,162 69,329
OPEB related 1,741,703 1,984,413
Total Deferred Inflows of Resources 1,770,865 2,053,742 Net Position:
Net investment in capital assets 255,043,621 217,892,824 Restricted 29,100,401 38,412,267
Unrestricted 42,002,713 34,145,370
Total Net Position $ 326,146,735 $ 290,450,461
DRAFT 45
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-10-
As of June 30, 2025 the City’s net position totaled $326.15 million, an increase of $35.70 million or approximately 12.3% in comparison to the prior fiscal year.
The largest portion of net position consisted of the City’s net investment of $255.04 million (78.2%) 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 $70.96 million or
21.9% for a total of $394.3 million and were primarily due to capital asset additions less the annual depreciation/amortization expense at fiscal year-end, which accounted for a $36.8 million net increase. Two bond issuances, the Lease Revenue Bonds and Measure A Transportation Sales Tax Bonds, also contributed to increase of cash of approximately $33.3 million.
The City’s total liabilities increased by approximately $35.16 million or 100.6% for a total of $70.1 million. Within this category, the City’s current and other liabilities decreased by $921 thousand or 5.3% primarily due to a the final payment of Successor Agency settlement agreement. With the influx of the bond proceeds mentioned above, the long term liabilities increased by a similar amount $33.3 million.
The restricted net position decreased by approximately $(9.31) million or (24.2) % for a total of $29.1 million (8.9% of total net position), which are funds subject to external restrictions on how the funds may be used, such as development impact fees programmed for capital projects. The unrestricted net position increased by approximately $7.9 million or 23% for a total of $42.0 million (12.9% 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, 2025, with comparative totals for the fiscal year ended June 30, 2024.
Generally, it indicates whether the financial health of the City as a whole is better, unchanged, or worse on June 30, 2025, in relation to a year earlier. For the fiscal year ended June 30, 2025, the total net position increased by $35.7 million or 12.3%, which shows the City’s financial health is relatively stronger from the previous fiscal year.
DRAFT 46
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-11-
Table 2
Changes in Net Position
Fiscal Year Ended June 30, 2025 and 2024
Governmental Activities
2025 2024
Revenues
Program Revenues:
Charges for services $ 3,572,928 $ 2,915,673
Operating contributions and grants 21,750,449 15,466,245 Capital contributions and grants 18,975,915 10,947,856
General Revenues
Taxes:
Property taxes 9,930,390 9,491,929
Sales and use taxes 23,581,549 15,972,669
Transient lodging tax 14,110,059 14,234,251
Franchise fees 1,681,254 1,730,737
Other taxes 934,589 953,844
Use of money and property 3,424,614 2,894,764
Other general revenue 1,581,228 793,470
Total Revenues 99,542,975 75,401,438
Expenses
General government 12,341,129 10,655,510
Public safety 11,763,039 10,975,712
Public works 27,189,941 18,786,893
Library 3,195,776 2,610,354
Planning & environmental review 4,838,240 4,628,681
Neighborhood services 3,391,633 2,832,847
Interest on long-term debt 1,126,943 275,752
Total Expenses 63,846,701 50,765,749
Change in Net Position 35,696,274 24,635,689
Beginning Net Position 290,450,461 265,814,772
Ending Net Position $ 326,146,735 $ 290,450,461
DRAFT 47
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-12-
Revenues: The City’s total revenues were $99.54 million for the fiscal year ended June 30, 2025, an increase of approximately $24.1 million or 32.0% when compared to last fiscal year.
Approximately 50.5% of the City’s revenue comes from some type of tax revenue including property, sales, transient occupancy taxes (TOT) and other taxes totaling $50.2 million this fiscal year. This is an increase of approximately $7.8 million when compared to the last fiscal year. This increase is primarily due to the new transaction use tax, which combined with the sales tax brings the total to $23.58 million or 47.6% increase when compared to last fiscal year.
Property taxes also increased by $438 thousand or 4.6% when compared to last fiscal year. In addition, transient occupancy tax decreased by –($124 thousand) or –(0.9)%. The City receives 12% of the total taxable hotel revenue within city limits. The other 6% 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 $63.85 million for the fiscal year ended June 30, 2025, an increase of $13.08 million or 25.8% 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 and bond issuances. The most significant departmental change was in Public Works. The department filled staff vacancies, which allowed the ability to manage more capital improvement projects, including the Pavement Rehabilitation Project and emergency response projects.
DRAFT 48
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-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,
3.6%
Operating Contributions
and Grants, 21.9%
Capital Contributions
and Grants, 19.1%
Property Tax, 10.0%
Sales Tax, 23.7%
Transient Occupancy
Tax, 14.2%
Franchise Fees, 1.7%
Other Taxes, 0.9%
Investment Income, 3.4%
Other, 1.6%
Sources of Revenue
DRAFT 49
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-14-
General Government,
19.30%
Library, 5.0%
Planning &
Environmental Review,
7.6%
Neighborhood
Services, 5.3%
Public Safety, 18.4%
Public Works, 42.6%
Interest on Long-term
Debt, 1.8%
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, 2025
Total Cost of Net Cost of
Services Services
General Government $ 12,341,129 $ 835,563
Public Safety 11,763,039 (11,022,912)
Public Works 27,189,941 (7,549,770)
Library 3,195,776 (1,300,233)
Planning & environmental review 4,838,240 3,719,824
Neighborhood services 3,391,633 (3,102,938)
Interest on long-term debt 1,126,943 (1,126,943)
Totals $ 63,846,701 $ (19,547,409)
DRAFT 50
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-15-
General Government expenses comprise approximately 19.3% 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. Library, Planning and Environmental Review and Neighborhood Services expenses comprise approximately 5.0%, 7.6%, and 5.3%, 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.
Public Safety expenses comprise approximately 18.4% of the governmental expenses and reflect the police services contract with the County of Santa Barbara’s Sheriff’s Office.
Public Works expenses comprise approximately 42.6% 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.
Interest on long-term debt primarily reflects the interest expense related three main items, with the first related to 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%.
The other items originate from the Lease Revenue Bonds and Local Measure A Transportation Sales Tax Revenue Bonds that were issued to fund capital projects. The two bonds will mature in 2055 and 2040, respectively.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At the fiscal year-end, the City’s governmental funds reported a combined fund balance of $112.5 million, an increase of $34.7 million or 44.7% over the prior fiscal year. The General Fund increased approximately $8.4 million or 15.8%. Besides the General Fund, there were 6 major funds out of the total 75 governmental funds. These include the Transportation Facilities DIF, Local STIP, TIRCP, Federal Transportation Program, Lease Revenue Bonds, and Sales Tax bonds. These 6 major funds account for 30% of the $112.5 million, or $33 million.
DRAFT 51
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-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 $54.8 million received came higher than the Final Budget by $3.4 million, primarily because of transaction use tax, higher tax receipts than anticipated with property tax, and transient occupancy tax. Overall actuals revenues increased approximately $9.3 million, or 20.5%, 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 3.5% and when compared to the prior fiscal year actuals, by 4.5%. 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 4.7%.
Sales tax exceeded budgeted projections by 1.8% and when compared to the prior fiscal year actuals, which increased by 3.8%. While this was a small increase, overall sales tax activity remained flat when adjusted for economic data. The Transaction Use Tax (TUT) has supplemented the sales tax revenues with receipts first received for January 2024. TUT actuals exceeded projections by 12.0% for a total of $12.3 million.
Transient Occupancy Tax (TOT) is the largest General Fund revenue source totaling $14.1 million and surpassing budgeted projections by 2.2%. Transient Occupancy Tax revenues experienced a decrease of (-0.9)% when compared to the previous fiscal year, fiscal year 2023- 24, which recorded $14.2 million. TOT revenue growth has slowed down and has continued to normalize.
Expenditures: Actual expenditures of $45.9 million were under the Final Budget amounts by $74.7 million, or 38.6% under budget. This favorable variance primarily stems from the fiscal year 2024-25 budget reflecting deferred projects and one-time program spending that was then encumbered for carryover into the next fiscal year. With a programmed budget at increased amounts and timing of filling staff vacancies, less spending activity was experienced across the departments.
By the end of the fiscal year, approximately $8.1 million was identified related to unfinished encumbered projects in the operating budget and $117.6 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 $5.9 million or 14.8%.
DRAFT 52
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-17-
Appropriations: Variances between the Original and the Final expenditure 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 considered one time or ongoing expenditures and analyzed against the City’s unassigned fund balance or another reserve category that may be available. Some significant budget appropriations $1.5 million for the Goleta Train Depot, $1.5 million for Pavement Maintenance, and $736,000 Community Center ADA Improvements. included Adjustments were recommended at mid-year (second quarter) and the third quarter when actual data was known, including adjustments to revenue.
Ending Fund Balance: The General Fund ending balance was $53.18 million as of June 30, 2025. This amount was higher than the final budget projection by $32.3 million or higher than $8.4 million when compared to the prior fiscal year. This increase was a result of higher revenues and less expenditure activity experienced in the fiscal year as described above. The table below summarizes the fund balance by classification:
Fund Balance:
Non-spendable:
Prepaid items $ 109,384
Committed 17,480,275
Assigned 26,124,383
Unassigned 9,467,780
Total Fund Balance $ 53,181,822
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 $14.0 million. Additionally, the City Manager and City Council have approved the continuing designation of unexpended funds of $26.1 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.
DRAFT 53
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-18-
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 $427.4 million at the end of fiscal year 2025. After accumulated depreciation, the net book value of these infrastructure improvements totals $264.97 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/Amortization)
Asset Type
Land $ 54,562,017
Infrastructure and right of way 260,423,344
Construction in progress 96,620,204
Vehicles 1,214,544
Furniture and equipment 1,403,465
Building and improvements 12,850,760
Right to use assets 292,483
Total capital assets 427,366,817
Less depreciation/amortization 162,400,646
Capital Assets net of Depreciation/Amortization 264,966,171 $ DRAFT 54
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-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, Lease Revenue Bonds, Sales Tax Bonds, 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, 2025. Additional information on the City of Goleta’s long-term debt can be found in Notes 1I, 1K, 1L, 5, 6, 7, and 12.
Table 5
Long-Term Debt
Governmental Activities
Compensated absences $ 1,474,946
Ibank lease payable 9,073,135
Lease liabilities 203,736
Subscription liabilities 19,142
Lease revenue bonds, Series 2025A 18,735,000
Premium 1,029,766
Local Measure A transportation Sales
tax revenue bonds, 2025 14,655,000
Premium 1,958,419
Net OPEB liability 892,158
Net pension liability 5,494,711
Total $ 53,536,013
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Economic Factors and Next Year's Budget
The City Council adopts a two-year budget plan at the beginning of each two-year cycle, formally adopting an annual operating and capital improvement budget prior to July 1st of each year. The adopted two-year plan includes finalized operating and capital budgets for the first year, while the second-year amounts are proposed estimates, serving as a basis for discussion, and are updated during the mid-cycle budget review process.
On June 17, 2025, the City Council adopted the next two-year budget plan for fiscal year 2025- 26 and 2026-27, which reflects a structurally balanced financial plan aligned with the City’s Strategic Plan and Council priorities.
For fiscal year 2025-26, total budgeted expenditures across all funds are approximately $100.8 million, with General Fund expenditures totaling $53.5 million. Total General Fund revenues are estimated at $51.4 million, supported primarily by property tax, sales and use tax, transient occupancy tax, and the voter-approved transaction and use tax. The adopted budget reflects continued reliance on the transaction and use tax as a key revenue source to support ongoing operations, capital investment, and long-term fiscal sustainability.
DRAFT 55
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-20-
Beginning in fiscal year 2025-26, the City will also commence annual debt service payments related to the Lease Revenue Bonds and Local Measure A Transportation Sales Tax Revenue Bonds issued in fiscal year 2024-25. These debt service obligations are incorporated into the adopted budget and are supported by identified revenue sources, including Measure A transportation sales tax revenues and General Fund resources, consistent with the City’s longterm financial planning framework.
In addition, the City prepared a five-year General Fund forecast as part of the budget process to evaluate future revenue and expenditure trends and to assess the City’s capacity to fund ongoing operations, capital maintenance, and debt service obligations. While forecasts are inherently subject to change based on economic conditions, the forecast is used as a planning tool to identify potential structural imbalances and inform policy decisions.
Overall, the adopted two-year budget reflects the City’s continued emphasis on financial stability, infrastructure investment, and service delivery while maintaining adequate reserves and monitoring economic conditions that could affect future revenues and expenditures.
Budget Highlights and Significant Changes
Revenue from the new Transaction and Use Tax was received by the City beginning in January 2024. The City collected $12.3 million for fiscal year 2024-25, which represents the first full fiscal year of receiving this tax revenue. Based on current trends, collections in fiscal year 2025-26 are expected to be generally consistent with prior-year levels. The additional revenue generated from the new tax will play a critical role in funding deferred maintenance, capital improvements, addressing community needs, and maintaining the City’s long-term fiscal stability.
Addressing homelessness has been stated as one of the highest Council priorities. The City spent $703,042 from the General Fund in fiscal year 2024-25 and programmed a budget of $911,100 for fiscal year 2025-26 for homelessness programs that meet strategies and objectives in the Homelessness Strategic Plan. The Sheriff contract was budgeted at $11.7 million for fiscal year 2024-25. This is an increase of 9.3% over the fiscal year 2023-24 budgeted amount of $10.7 million. The City concluded contract negotiations with the Sheriff for a long-term contract from July 1, 2023, through June 30, 2027. The long-term contract includes annual cost escalators ranging from 3% to 6%. For fiscal year 2025-26, the sheriff contract costs are projected at $12.70 million. The annual cost escalators are expected to influence future budget allocations, necessitating careful fiscal planning to ensure sustainable funding. The City’s General Fund contribution to the library has been steadily increasing. The General Fund contribution for the fiscal year 2024-25 was $728,431 and is currently projected at $800,568 for the fiscal year 2025-26.
DRAFT 56
City of Goleta
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-21-
The City took over the Goleta Valley Community Center in January 2023. The Strategic Plan for the Community Center was approved by the Council on April 18, 2023. Over the course of this budget cycle, a decision was made to manage the facility in-house to enhance the facility, increase community engagement, and make major upgrades and repairs to the facility. The General Fund contribution to the Commuter Center in fiscal year 2024-25 was $413,043 and is projected to increase to $530,950 in fiscal year 2025-
26. The General Fund contribution to the Capital Improvement Program (CIP) was $2.82 million in actual spending in fiscal year 2024-25. During the budget adoption process, an additional $2.4 million of new General Fund dollars were appropriated for fiscal year 2025-26. When including the carryover budget and other adjustments of $15.4 million to help complete projects, the General Fund contribution is now projected at $17.8 million for fiscal year 2025-26. Some of the key projects include the Goleta Train Depot, Project Connect, Goleta Community Center ADA improvements and Campus, Cathedral Oaks Crib Wall Repair, San Jose Creek Multipurpose Path – Northern & Southern Segments, Stow Grove Park Master Plan & Renovation, Winchester II Park Improvements, and Ellwood Mesa and Monarch Butterfly Habitat.
Annual Debt Service
o RDA Settlement concluded June 30, 2025
o Lease Revenue Bond
As part of the two-year budget for fiscal year 2025-26 and 2026-27 process, various positions were reclassified. Total FTEs changed from 124.625 to123.625.
Looking ahead, Goleta faces challenges, including deferred maintenance, funding gaps critical capital improvement projects, and broader economic uncertainties. Factors such as potential recession and changes in federal monetary policy may increase borrowing costs, posing additional financial pressures. Although inflation rates have significantly slowed since their peak in 2022, operating and capital expenditures remain elevated. Despite these challenges, the City remains committed to sound fiscal management by implementing strategic budget measures and safeguarding its long-term financial health. This includes maintaining prudent reserves, exploring debt financing options, such as tax-exempt bonds, pursuing additional grant opportunities, and evaluating adjustments to current revenue streams. These efforts will help address funding gaps and support critical investments in the community’s infrastructure and future.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT STAFF
This financial report is designed to provide Goleta residents, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the Finance Department, City of Goleta, 130 Cremona Dr. Suite B, Goleta, California 93117, (805) 961-7500 or email [email protected].
Additional information can also be found on the City’s website at www.cityofgoleta.org.
DRAFT 57
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 58
City of Goleta
Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -22-
Governmental Activities
ASSETS:
Cash and investments $ 109,240,276
Receivables, net:
Accounts 19,011,148
Interest 498,152
Loans 351,628
Deposits payable 122,683
Prepaid items 109,384
Capital assets:
Non Depreciable:
Land 54,562,017
Rights of way 11,395,313
Construction in progress 96,620,204
Depreciable:
Infrastructure 249,028,031
Vehicles 1,214,544
Furniture and equipment 1,403,465
Buildings and improvements 12,850,760
Right to use lease assets - equipment 253,938
Right to use subscription assets 38,545
Accumulated depreciation/amortization (162,400,646)
Total assets 394,299,442
DEFERRED OUTFLOWS OF RESOURCES
Pension related 3,517,082
Net OPEB related 210,844
Total deferred outflows of resources 3,727,926
LIABILITIES
Accounts payable 10,949,853
Accrued salaries and benefits 765,866
Retentions payable 626,537
Interest payable 99,139
Deposits payable 2,306,434
Unearned revenue 1,825,926
Noncurrent liabilities:
Due within one year 1,797,751
Due in more than one year 45,351,393
Net OPEB liability 892,158
Net pension liability 5,494,711
Total liabilities 70,109,768
DEFERRED INFLOWS OF RESOURCES
Pension related 29,162
Net OPEB related 1,741,703
Total deferred inflows of resources 1,770,865
NET POSITION
Net investment in capital assets 255,043,621
Restricted for:
Public works 23,622,205
Library 1,683,643
Planning & environmental review 3,631,549
Neighborhood services 163,004
Unrestricted 42,002,713
Total net position $ 326,146,735
DRAFT 59
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 60
City of Goleta
Statement of Activities
For the Year Ended June 30, 2025
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 $ 12,341,129 $ 172,528 $ 13,004,164 $ - $ 835,563 Public safety 11,763,039 - - 740,127 (11,022,912)
Public works 27,189,941 879,745 853,519 17,906,907 (7,549,770) Library 3,195,776 21,325 1,670,357 203,861 (1,300,233)
Planning & environmental review 4,838,240 2,446,705 6,111,359 - 3,719,824 Neighborhood services 3,391,633 52,625 111,050 125,020 (3,102,938) Interest on long-term debt 1,126,943 - - - (1,126,943)
Total governmental activities $ 63,846,701 $ 3,572,928 $ 21,750,449 $ 18,975,915 (19,547,409) Taxes:
9,930,390
23,581,549
14,110,059
1,681,254
934,589
3,424,614
1,581,228
55,243,683
35,696,274
290,450,461
$ 326,146,735
Program Revenues
Franchise fees
General Revenues
Property taxes
Sales and use taxes
Transient lodging tax
Net position, beginning
Net position, ending
Other taxes
Other general revenues
Use of money and property
Total general revenues
Change in net position
DRAFT 61
City of Goleta
Governmental Funds
Balance Sheet
June 30, 2025
The accompanying notes are an integral part of these financial statements. -24-
General Fund
Transportation
Facilities DIF
(formerly non
major)
Local STIP
(formerly nonmajor)TIRCP (formerly
non-major)
ASSETS:
Cash and investments $ 39,697,202 $ 1,996,269 $ - $ - Receivables, net:
Accounts 6,757,380 491 5,411,557 2,970,894
Interest 314,414 6,911 - - Loans 351,628 - - - Deposits 27,891 52,555 - - Prepaid items 109,384 - - - Due from other funds 11,471,772 - - - TOTAL ASSETS $ 58,729,671 $ 2,056,226 $ 5,411,557 $ 2,970,894
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES:
LIABILITIES
Accounts payable $ 2,643,043 $ 755,571 $ 1,208,837 $ 1,779,325 Accrued salaries and benefits 638,794 - - - Retentions payable 22,591 4,449 256,217 - Deposits payable 2,146,735 - - - Unearned revenue 79,832 - - - Due to other funds - - 5,145,289 1,439,621 TOTAL LIABILITIES 5,530,995 760,020 6,610,343 3,218,946
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 16,854 - - - TOTAL DEFERRED INFLOWS OF RESOURCES 16,854 - - - FUND BALANCES
Nonspendable 109,384 - - - Restricted - 1,296,206 - - Committed 17,480,275 - - - Assigned 26,124,383 - - - Unassigned 9,467,780 - (1,198,786) (248,052) TOTAL FUND BALANCES (DEFICITS) 53,181,822 1,296,206 (1,198,786) (248,052)
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES $ 58,729,671 $ 2,056,226 $ 5,411,557 $ 2,970,894 Special Revenue Funds
DRAFT 62
The accompanying notes are an integral part of these financial statements. -25-
Special Revenue Fund
Federal
Transportation
Program
Lease Revenue
Bonds Sales Tax Bonds
Other
Governmental
Funds Totals
$ - $ 19,649,343 $ 16,453,248 $ 31,444,214 $ 109,240,276 1,401,000 - - 2,469,826 19,011,148
- - - 176,827 498,152
- - - - 351,628
42,237 - - - 122,683
- - - - 109,384
- - - - 11,471,772
$ 1,443,237 $ 19,649,343 $ 16,453,248 $ 34,090,867 $ 140,805,043 $ 1,589,401 $ - $ 657,789 $ 2,315,887 $ 10,949,853
- - - 127,072 765,866
119,569 - - 223,711 626,537
- - - 159,699 2,306,434
- - - 1,746,094 1,825,926
1,347,899 - - 3,538,963 11,471,772
3,056,869 - 657,789 8,111,426 27,946,388
- - - 306,917 323,771
- - - 306,917 323,771
- - - - 109,384
- 19,649,343 15,795,459 28,413,807 65,154,815
- - - - 17,480,275
- - - - 26,124,383
(1,613,632) - - (2,741,283) 3,666,027
(1,613,632) 19,649,343 15,795,459 25,672,524 112,534,884 $ 1,443,237 $ 19,649,343 $ 16,453,248 $ 34,090,867 $ 140,805,043 Capital Project Funds
DRAFT 63
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 64
City of Goleta
Reconciliation of the Governmental Funds – Balance Sheet to the Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -26-
Total fund balances - governmental funds $ 112,534,884
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 $ 427,366,817
Accumulated depreciation (162,400,646)
Net 264,966,171
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. 323,771
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. (99,139)
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 liabilities relating to governmental activities consist of:
Compensated absences payable (1,474,946)
IBank lease payable (9,073,135)
Lease revenue bond liability (18,735,000)
Premium (1,029,766)
Measure A bonds liability (14,655,000)
Premium (1,958,419)
Lease liability (203,736)
Subscription liability (19,142)
Net OPEB liability (892,158)
Net pension liability (5,494,711)
Total (53,536,013)
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 3,517,082
to OPEB 210,844
Deferred inflows of resources relating:
to pensions (29,162)
to OPEB (1,741,703)
1,957,061
Total net position - governmental activities
DRAFT
$ 326,146,735
65 City of Goleta
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -27-
General Fund
Transportation
Facilities DIF
(formerly non
major)
Local STIP
(formerly nonmajor)TIRCP (formerly
non-major)
REVENUES:
Taxes $ 46,278,447 $ - $ - $ - Franchise fees 1,632,464 - - - Intergovernmental 66,934 - 5,411,556 5,427,842
Charges for services 2,546,792 - - - Licenses and permits 322,539 - - - Fines and forfeitures 235,506 - - - Use of money and property 2,125,162 209,862 - - Developer fees - 2,393,166 - - Donations 591,862 - - - Other 972,471 - - - Special assessments - - - - Total revenues 54,772,177 2,603,028 5,411,556 5,427,842 EXPENDITURES:
Current:
General government 12,629,111 - - - Public safety 11,501,844 - - - Public works 10,427,439 21,000 - - Library 940,849 - - - Planning & environmental review 4,689,594 - - - Neighborhood services 2,303,769 - - - Capital outlay 2,784,112 10,197,239 6,606,033 5,676,338 Debt service:
Principal 240,850 - - -
Interest 385,645 - - - Cost of issuance - - - - Total expenditures 45,903,213 10,218,239 6,606,033 5,676,338 Excess of revenues over (under) expenditures 8,868,964 (7,615,211) (1,194,477) (248,496)
OTHER FINANCING SOURCES (USES)
Transfers in 9,290 - - - Transfers out (703,042) (3,159) - - Subscription/lease acquisition 212,418 - - - Proceeds from issuance of debt - - - - Premium from issuance of debt - - - - Total other financing sources (uses) (481,334) (3,159) - - Net change in fund balances 8,387,630 (7,618,370) (1,194,477) (248,496) Fund balances (deficit), beginning 44,794,192 - - - Change within financial reporting entity (nonmajor to major) - 8,914,576 (4,309) 444 Fund balances, beginning of year, as restated 44,794,192 8,914,576 (4,309) 444 Fund balances (deficit), end of year $ 53,181,822 $ 1,296,206 $ (1,198,786) $ (248,052) Special Revenue Funds
DRAFT 66
The accompanying notes are an integral part of these financial statements. -28-
Coronavirus
State & Local
Fiscal Recovery
(formerly major)
Federal
Transportation
Program
Lease Revenue
Bonds Sales Tax Bonds
Other
Governmental
Funds Totals
$ - $ - $ - $ 2,906,730 $ 49,185,177
- - - 1,481,779 3,114,243
9,295,091 - 13,796,833 - 33,998,256
- - - 22,593 2,569,385
- - - - 322,539
- - - 1,644 237,150
- 200,988 168,295 1,648,529 4,352,836
- - - 1,104,892 3,498,058
- - - 26,790 618,652
- - - 25,001 997,472
- - - 365,436 365,436
9,295,091 200,988 168,295 21,380,227 99,259,204
- - - 49,252 12,678,363
- - - 256,612 11,758,456
- - - 8,376,233 18,824,672
- - - 2,382,968 3,323,817
- - - 62,485 4,752,079
- - - 696,735 3,000,504
10,109,823 - 657,789 9,370,336 45,401,670
- - - - 240,850
- - - 99,735 485,380
- 316,411 328,466 - 644,877
10,109,823 316,411 986,255 21,294,356 101,110,668
(814,732) (115,423) (817,960) 85,871 (1,851,464)
3,159 - - 3,851,293 3,863,742
- - - (3,157,541) (3,863,742)
- - - - 212,418
18,735,000 - 14,655,000 - 33,390,000
- 1,029,766 1,958,419 - 2,988,185
3,159 19,764,766 16,613,419 693,752 36,590,603
(811,573) 19,649,343 15,795,459 779,623 34,739,139
- (802,059) - 33,803,612 77,795,745 -
- - - - (8,910,711) -
- (802,059) - 24,892,901 - 77,795,745
$ - $ (1,613,632) $ 19,649,343 $ 15,795,459 $ 25,672,524 $ 112,534,884 Special Revenue Funds Capital Project Funds
DRAFT 67
City of Goleta
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -29-
Total net change in fund balances - governmental funds $ 34,739,139 Capital assets, net of depreciation 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.
Capital outlay, net of disposal 43,024,207
Depreciation (6,173,072)
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:
(444,608)
In governmental funds, repayment of long-term liabilities consume current financial resources.
In the government-wide statements, repayments of long-term liabilities are reported as reductions of liabilities. 1,102,610
In governmental funds, issuance of long-term liabilities provides current financial resources. In the government-wide statements, issuance of long-term liabilities are reported as an addition to liabilities. (36,590,603)
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 it is incurred. Unmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period is: 3,314 In governmental funds, the net effect of revenues reported in the Statement of Activities which are not considered to be available to finance current expenditures and therefore are not reported as revenues in the governmental funds. 283,771
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: 88,267 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: (336,751)
Changes in net position - governmental activities
DRAFT
$ 35,696,274
68 City of Goleta
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -30-
Successor Agency to
the Goleta
Redevelopment
Agency PrivatePurpose Trust Fund
ASSETS
Cash and investments $ 899,084
Receivables:
Interest 4,561
Bond insurance premium 49,194
Restricted assets:
Cash and investments with fiscal agent 900
TOTAL ASSETS 953,739
DEFERRED OUTFLOWS OF RESOURCES
Loss on bond refunding 512,946
TOTAL DEFERRED OUTFLOWS OF RESOURCES 512,946
LIABILITIES
Accrued interest bond payable 35,579
Bonds payable, current portion 406,811
Bonds payable, net of current portion 10,816,533
Unearned revenue 480,161
TOTAL LIABILITIES 11,739,084
NET POSITION (DEFICIT)
Restricted in trust for:
Successor Agency to the Goleta RDA (10,272,399)
TOTAL NET POSITION $ (10,272,399)
DRAFT 69
City of Goleta
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -31-
Successor Agency to
the Goleta
Redevelopment
Agency PrivatePurpose Trust Fund
ADDITIONS
Property taxes $ 1,145,134
Use of money and property 34,346
Total additions 1,179,480
DEDUCTIONS
Administration 17,900
Community development 357,078
Distribution to Santa Barbara County 775,941
Interest 402,433
Total deductions 1,553,352
Change in net position (373,872)
Net position (deficit), beginning (9,898,527)
Net position (deficit), ending $ (10,272,399)
DRAFT 70
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-32-
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.
Blended Component Units
The financial reporting entity consists of the primary government, the City, and its component units. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
Blended component units, although legally separate entities, are, in substance part of the government's operation and so data from these units are combined with data of the primary government
The Goleta Facilities Financing Authority (the Authority) was founded by the execution of a joint exercise of powers agreement dated November 1, 2024, by the City of Goleta and the California Statewide Communities Development Authority. The Authority is authorized to issue revenue bonds to be repaid from the proceeds of public obligations and to provide financing and refinancing for public capital improvements of public entities, including the City. The City Council of the City of Goleta serves as the governing board for the Authority and the City has fiduciary responsibility for the Authority. The Authority exclusively benefits the City. Transactions are recorded in the Lease Revenue Bonds and Sales Tax Bonds Capital Projects Funds. There are no separate financial statements available.
DRAFT 71
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-33-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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 an other 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.
DRAFT 72
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-34-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
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.
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 GAAP, 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.
DRAFT 73
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-35-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
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 longterm debt are recorded as an other financing source rather than as a fund liability.
Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
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.
DRAFT 74
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-36-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Classifications
GAAP 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.
Transportation Facilities DIF – Accounts for traffic development impact fees. This fund was formerly known as the Goleta Transportation Improvement Program (GTIP).
Local STIP – Accounts for state grant funds to local governments for use in transit and highway projects, including street and road projects.
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.
Federal Transportation Program – Accounts for federal grant funds for transportation projects.
Lease Revenue Bonds – This fund accounts for trustee-held bond proceeds restricted for eligible Capital Improvement Projects.
Sales Tax Bonds – This fund accounts for trustee-held bond proceeds used for transportation-related projects eligible under Measure A.
DRAFT 75
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-37-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Fund Classifications (Continued)
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.
Capital Project Funds – These funds are used account for resources that are restricted, committed, or assigned for the acquisition or construction of major capital assets. These funds track project-specific revenues—such as bond proceeds and grants—and the related expenditures for long-term infrastructure and facility improvements.
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 ABx126, 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.
Property 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.)
DRAFT 76
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-38-
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 five 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 and amortizing storm drains, park equipment, buildings, vehicles, equipment and furniture and leasehold improvements. Depreciation and amortization are charged as an expense against operations, and accumulated depreciation and amortization is reported on the respective statement of net position.
Depreciation and amortization begin on the first full year after the asset is placed in service. The range of lives used for depreciation and amortization purposes for each capital asset class are 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
DRAFT 77
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-39-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Deferred Outflows and Inflows of Resources
In accordance with GAAP 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. Deferred outflows of resources represent a consumption of net assets that applies to future periods. The City has two items that qualify for reporting in this category; refer to Notes 6 and 7 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 FundsBalance Sheet will sometimes report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to future periods. 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.
DRAFT 78
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-40-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023 to June 30, 2024
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:
Nonspendable Fund Balance - represents amounts that cannot be spent because they are either not in spendable form (such as inventory or prepaid insurance) or are legally required to remain intact (such as notes receivable or principal of a permanent fund).
Restricted Fund Balance - represents amounts that are constrained by external parties, constitutional provisions, or enabling legislation.
DRAFT 79
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-41-
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Fund Balances (Continued)
Committed Fund Balance - represents amounts that can only be used for a specific purpose because of a formal action by the City's governing board, 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 motion 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. 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. 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
GAAP 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 amortization, 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.
DRAFT 80
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-42-
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 CalOES and Coronavirus State and Local Fiscal Recovery Funds for the year ended June 30, 2025. 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, 2025. 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, 2025, 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.
DRAFT 81
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-43-
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.
R. New Pronouncements
In 2025, the City adopted new accounting standards to conform to the following Governmental Accounting Standards Board Statements:
GASB Statement No. 101 – Compensated Absences: The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The requirements of this statement are effective for fiscal years beginning after December 15, 2023.
GASB Statement No. 102, Certain Risk Disclosures: The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this statement are effective for fiscal years beginning after June 15, 2024.
The following new pronouncements may have an effect on the City when implemented:
GASB Statement No. 103, Financial Reporting Model Improvements: The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this statement are effective for fiscal years beginning after June 15, 2025.
GASB Statement No. 104, Disclosure of Certain Capital Assets: The objective of this statement is to provide users of government financial statements with essential information about certain types of capital assets. The requirements of this statement are effective for fiscal years beginning after June 15, 2025.
DRAFT 82
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-44-
NOTE 2 - CASH AND INVESTMENTS
The composition of cash and investments as of June 30, 2025, is as follows:
Cash on hand $ 1,678
Deposits with financial institutions 541,829
Investments 109,596,753
Total cash and investments $ 110,140,260
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 $ 109,240,276
Statement of Fiduciary Net Position:
Cash and investments 899,084
Restricted cash and investments with fiscal agent 900
Total cash and investments $ 110,140,260
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 DRAFT 83
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-45-
NOTE 2 - CASH AND INVESTMENTS (Continued)
The City has recurring fair value measurements as of June 30, 2025 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 $ 5,150,171 $ 5,150,171 $ - $ - Treasury Securities 5,603,369 5,603,369 - - PARS moderate index 197,988 - 197,988 - Total investments measured at fair value 10,951,528 10,753,540 $ $ 197,988 $ - Investments not subject to the fair value hierarchy
Money market funds 16,602,233
LAIF 45,939,501
Held by fiscal agent:
Money market funds 36,103,491
Total investments $ 109,596,753
Fair Value Measurement Using
A. Investments Authorized by the 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.
DRAFT 84
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-46-
NOTE 2 - CASH AND INVESTMENTS (Continued)
A. Investments Authorized by the 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 Portfolio* in One Issuer* Local Agency Bonds Yes 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 270 days 20% 10%
Certificates of Deposit Yes 5 years 20% 10%
Negotiable Certificates of Deposit Yes 5 years 20% 10%
Repurchase Agreements No 1 year None 10%
Reverse Repurchase Agreements No 92 days 21% of base value 10% Medium-Term Corporate Notes Yes 5 years 20% 5%
Mutual Funds Yes 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 Yes N/A None None
Local Agency Investment Fund Yes N/A None $ 75,000,000
JPA Pools {other investment pools) Yes N/A None None
Passbook Accounts Yes N/A None None
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.
DRAFT 85
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-47-
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
Negotiable certificates of deposit 5,150,171 $ $ 246,791 $ 718,777 $ 4,184,603 Treasury securities 5,603,369 1,149,920 1,102,574 3,350,875 PARS moderate index 197,988 197,988 - - LAIF 45,939,501 45,939,501 - - Money market funds 16,602,233 16,602,233 - - Held by fiscal agent:
Money market funds 36,103,491 36,103,491 - - Total $ 109,596,753 $ 100,239,924 $ 1,821,351 $ 7,535,478 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 Aa1 Not Rated
Negotiable certificates of deposit 5,150,171 $ N/A $ - $ 5,150,171 Treasury securities 5,603,369 N/A 5,603,369 - PARS moderate index 197,988 N/A - 197,988 LAIF 45,939,501 N/A - 45,939,501
Money market funds 16,602,233 N/A - 16,602,233
Held by fiscal agent:
Money market funds 36,103,491 N/A - 36,103,491
Total $ 109,596,753 $ 5,603,369 $ 103,993,384
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, 2025, 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 51% or more of total City investments.
DRAFT 86
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-48-
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, 2025, 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.
DRAFT 87
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-49-
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, 2025, was as follows:
Fund Due to Due from
Major Governmental Funds:
General Fund $ 11,471,772 $ - Local STIP - 5,145,289
TIRCP - 1,439,621
Federal Transportation Program - 1,347,899
Nonmajor Governmental Funds:
Measure A Grants - 101,137
County Fire DIF - 299,417
RSTP State Grant - 420,350
Miscellaneous Grants - 127,718
CDBG - 30,494
HSIP - 3,720
Housing & Community Development - 729,866
HMGP - 12,074
Active Transportation Program - 1,763,543
Cal-Fire Grants - 48,850
United States Department of Agriculture - 1,794
Total
DRAFT
$ 11,471,772 $ 11,471,772
88 City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-50-
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. During the fiscal year ended June 30, 2025, the City made interfund transfers to allocate resources for operational needs, capital projects, and compliance with grant requirements. These transfers were authorized through the City Council’s budget process or subsequent amendments and align with applicable legal and regulatory requirements.
Interfund transfers for the fiscal year ended June 30, 2025, were as follows:
Fund Transfers In Transfers Out
Major Governmental Fund:
General Fund $ 9,290 $ 703,042
Federal Transportation Program 3,159 - Transportation Facilities DIF - 3,159 Nonmajor Governmental Fund:
Park DIF - 3,148,251
CDBG - 9,290
Quimby 3,148,251 - Active Transportation Program 40,000 - Housing In-Lieu 250,000 - Community Center 413,042 - $ 3,863,742 $ 3,863,742 The General Fund received $9,290 from the CDBG Fund to reimburse administrative staff time. The General Fund also transferred $250,000 to the Housing-in-Lieu fund to support future housing projects that benefit the City, $267,781 and $145,261 to the Community Center fund to cover expenditures that exceeded revenues and to create a fund balance that will be used for the budget carry over, and $40,000 to the Active Transportation Program Fund to cover non-reimbursable expenditures due to timing of submission. The Transportation Facilities DIF fund transferred $3,159 to the Fed Transport Fund to cover non-reimbursable expenditures due to date of submission of request. The Park DIF fund transferred $3,148,251 to the Quimby Fund per the 2nd quarter financial review council action request.
DRAFT 89
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-51-
NOTE 4 - CAPITAL ASSETS
Capital assets activity for the fiscal year ended June 30, 2025, was as follows:
Balance
June 30, 2024 Additions Deletions Transfers
Balance
June 30, 2025
Governmental Activities
Nondepreciable capital assets:
Land $ 49,969,598 $ 4,592,419 $ - $ - $ 54,562,017
Right of way 11,395,313 - - - 11,395,313
Construction in progress 58,623,924 38,161,001 - (164,721) 96,620,204 Total nondepreciable capital assets 119,988,835 42,753,420 - (164,721) 162,577,534 Depreciable capital assets:
Infrastructure 248,863,310 - - 164,721 249,028,031
Vehicles 1,279,571 - (65,027) - 1,214,544
Furniture and equipment 1,405,436 58,369 (60,340) - 1,403,465 Buildings and improvements 12,850,760 - - - 12,850,760
Right to use lease assets - equipment 41,520 212,418 - - 253,938 Right to use subscription assets 116,226 - (77,681) - 38,545 Total depreciable capital assets 264,556,823 270,787 (203,048) 164,721 264,789,283 Less accumulated depreciation/amortization:
Infrastructure 152,444,205 5,646,765 - 158,090,970 - Vehicles 832,388 98,885 (65,027) - 866,246 Furniture and equipment 1,118,116 53,251 (60,340) - 1,111,027 Buildings and improvements 1,968,642 288,318 - - 2,256,960 Right to use lease assets - equipment 14,442 41,208 - - 55,650 Right to use subscription assets 52,829 44,645 (77,681) - 19,793 Total accumulated depreciation/amortization 156,430,622 6,173,072 (203,048) 162,400,646 - Net depreciable capital assets 108,126,201 (5,902,285) - 164,721 102,388,637 Net capital assets $ 228,115,036 $ 36,851,135 $ - $ 264,966,171 - $ 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 $ 236,644
Public safety 4,583
Public works 5,765,125
Library 44,634
Neighborhood services 122,086
DRAFT
Total depreciation expense-governmental activities $ 6,173,072 90 City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-52-
NOTE 5 - LONG-TERM LIABILITIES
The following is a summary of long-term liability activities for the fiscal year ended June 30, 2025:
Balance
June 30, 2024 Additions Deletions
Balance
June 30, 2025
Due Within
One Year
Compensated absences* $ 1,030,338 $ 444,608 $ 1,474,946 - $ $ 294,989 Successor Agency settlement agreement 775,941 - 775,941 - - IBank lease payable 9,313,985 - 240,850 9,073,135 247,209 Lease liabilities 30,484 212,418 39,166 203,736 107,989 Subscription liabilities 65,795 - 46,653 19,142 12,677
Lease revenue bonds, Series 2025A 18,735,000 - 18,735,000 - 290,000 Premium 1,029,766 - 1,029,766 - 34,326
Local Measure A transportation Sales
tax revenue bonds, Series 2025 14,655,000 - 14,655,000 - 680,000 Premium 1,958,419 - 1,958,419 - 130,561
Total $ 11,216,543 $ 37,035,211 $ 1,102,610 $ 47,149,144 $ 1,797,751 *net change is presented
A. Compensated Absences
The City's policies relating to compensated absences are described in Note 1. The liability in the amount of $1,474,946 at June 30, 2025, is expected to be paid in future years from future resources.
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. As of June 30, 2025, the settlement was paid off.
DRAFT 91
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-53-
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
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 274,366 106,187 380,553
2031-2035 1,484,381 474,659 1,959,040
2036-2040 1,690,941 371,378 2,062,319
2041-2045 1,926,246 253,726 2,179,972
2046-2050 2,194,294 119,702 2,313,996
2051 474,220 6,260 480,480
Total $ 9,073,135 $ 1,791,047 $ 10,864,182
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
2026 $ 107,989 $ 11,969 $ 119,958
2027 89,373 2,737 92,110
2028 6,374 48 6,422
Total $ 203,736 $ 14,754 $ 218,490
See note 4 for the net book value of right to use assets acquired through leases.
DRAFT 92
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-54-
NOTE 5 - LONG-TERM LIABILITIES (Continued)
F. Subscription Liabilities
The City has entered into subscriptions for the use of software packages. The subscription terms range from 29 to 36 months. Monthly payments range from $1,083 to $2,916 with an interest rates ranging from 2.63% to 4.38%. Future payments on the total subscription liabilities are as follows.
Fiscal Year Ending June 30, Principal Interest Total
2026 $ 12,677 $ 323 $ 13,000
2027 6,465 35 6,500
Total $ 19,142 $ 358 $ 19,500
See note 4 for the net book value of right to use assets acquired through subscriptions.
G. Lease revenue bonds, Series 2025A
In May 2025, the Goleta Facilities Financing Authority issued the $18,735,000 Lease Revenue Bonds Series, 2025A to finance a portion of certain street, traffic circulation and multipurpose pathway projects and to pay the incidental costs and expenses associated with the issuance of the bonds. The bonds are secured by a ground lease between the Authority and the City. The bonds are payable from and secured by the base rental payments.
The Series A bonds are payable in annual installments ranging from $290,000 to $1,090,000 commencing May 1, 2026. The final bond matures May 1, 2055. Interest is payable semi-annually on May 1 and November 1 at rates ranging from 4.00% to 5.00% per annum. Future payments on the bonds are as follows:
Fiscal Year Ending June 30, Principal Interest Total
2026 $ 290,000 $ 844,850 $ 1,134,850
2027 305,000 830,350 1,135,350
2028 320,000 815,100 1,135,100
2029 335,000 799,100 1,134,100
2030 350,000 782,350 1,132,350
2031-2035 2,030,000 3,630,750 5,660,750
2036-2040 2,600,000 3,069,250 5,669,250
2041-2045 3,315,000 2,351,500 5,666,500
2046-2050 4,145,000 1,519,400 5,664,400
2051-2055 5,045,000 621,400 5,666,400
Total $ 18,735,000 $ 15,264,050 $ 33,999,050
DRAFT 93
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-55-
NOTE 5 - LONG-TERM LIABILITIES (Continued)
H. Local Measure A Transportation Sales Tax Revenue Bonds Series, 2025 In May 2025, the Goleta Facilities Financing Authority issued the $14,655,000 Local Measure A Transportation Sales Tax Revenue Bonds Series, 2025 to finance a portion of certain street, traffic circulation and multipurpose pathway projects, to purchase municipal bond insurance, and to pay the incidental costs and expenses associated with the issuance of the bonds. The bonds are secured and payable from future Measure A revenues.
The Series A bonds are payable in annual installments ranging from $680,000 to $1,345,000 commencing May 1, 2026. The final bond matures May 1, 2040. Interest is payable semi-annually on May 1 and November 1 at a rate of 5.00% per annum. Future payments on the bonds are as follows:
Fiscal Year Ending June 30, Principal Interest Total
2026 $ 680,000 $ 732,750 $ 1,412,750
2027 715,000 698,750 1,413,750
2028 750,000 663,000 1,413,000
2029 785,000 625,500 1,410,500
2030 825,000 586,250 1,411,250
2031-2035 4,790,000 2,269,750 7,059,750
2036-2040 6,110,000 946,500 7,056,500
Total $ 14,655,000 $ 6,522,500 $ 21,177,500
NOTE 6 - PENSION PLAN
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 miscellaneous rate plans.
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.
DRAFT 94
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-56-
NOTE 6 - PENSION PLAN (Continued)
General Information about the Pension Plans (Continued) 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 fulltime 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.
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 as of June 30, 2025 are summarized as follows:
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-67+ 52-67+
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 7.00% 7.75%
Required employer contribution rates 12.52% + $379,339 7.87% + $16,057 Miscellaneous
DRAFT 95
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-57-
NOTE 6 - PENSION PLAN (Continued)
General Information about the Pension Plans (Continued) 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, 2025 were $1,638,882.
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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.
DRAFT 96
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-58-
NOTE 6 - PENSION PLAN (Continued)
Net Pension Liability (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Actuarial Cost Method
Asset Valuation Method Fair Value of Assets
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 Contract COLA or 2.30% until Purchasing Power Protection Allowance floor on
purchasing power applies, 2.30%
thereafter.
(1) The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study 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.
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.
DRAFT 97
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-59-
NOTE 6 - PENSION PLAN (Continued)
Net Pension Liability (Continued)
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 2021-22 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.
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
There were no subsequent events that would materially affect the results presented in this disclosure.
DRAFT 98
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-60-
NOTE 6 - PENSION PLAN (Continued)
Net Pension Liability (Continued)
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.
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: 6/30/2023 (VD) $ 29,222,178 $ 23,729,711 $ 5,492,467 Balance at: 6/30/2024 (MD) 32,938,546 27,443,835 5,494,711 Net changes during 2023-24 $ 3,716,368 $ 3,714,124 $ 2,244 Valuation Date (VD); Measurement Date (MD)
Increase (Decrease)
DRAFT 99
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-61-
NOTE 6 - PENSION PLAN (Continued)
Proportionate Share of Net Pension Liability (Continued) 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, 2023 and 2024 measurement dates was as follows:
Miscellaneous
Proportion - June 30, 2023 0.10984%
Proportion - June 30, 2024 0.11361%
Change - Increase (Decrease) 0.00377%
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) 9,939,451 $ $ 5,494,711 $ 1,836,036 DRAFT 100
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-62-
NOTE 6 - PENSION PLAN (Continued)
Proportionate Share of Net Pension Liability (Continued) Amortization of Deferred Outflows and Deferred Inflows of Resources 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
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the City’s net pension liability was $ 5,492,467. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $1,975,634.
DRAFT 101
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-63-
NOTE 6 - PENSION PLAN (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
As of June 30, 2025, 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 $ 141,226 $ - Differences between expected and actual experience 475,068 18,537 Net difference between projected and actual earnings on retirement plan investments 316,324 - Differences between employer's contributions and proportionate share of contributions 438,993 10,625
Change in employer's proportion 506,589 - City contributions subsequent to the measurement date 1,638,882 - $ 3,517,082 $ 29,162 The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $1,638,882 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
2026 $ 804,768
2027 1,006,561
2028 146,110
2029 (108,401)
2030 - Thereafter -
Payable to the Pension Plan
At June 30, 2025, the City reported a payable of $-0- for the outstanding amount of contributions to the pension plan required for the year then ended.
DRAFT 102
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-64-
NOTE 7 - POSTEMPLOYMENT HEALTH CARE BENEFITS (OPEB)
Plan Description
The City provides and agent multiple employer postemployment health care benefits through the CalPERS agent multiple employer health care program (PEMHCA) to eligible employees. The City pays the PEMHCA minimum of $157/month for 2024 and $158/month for 2025. 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.
Employees Covered
As of June 30, 2025, the following current and former employees were covered by the benefit terms under the City's Plan:
Active plan members 115
Inactive plan members or beneficiaries currently receiving benefits 14 Inactive plan members entitled to but not yet receiving benefits 21 Total 150
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, 2025, the City contributed $50,638 to the PARS Section 115 Trust Fund.
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2025 and the net OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation as of June 30, 2024.
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, 2025 Measurement Date
Actuarial valuation date June 30, 2024
Salary increases Aggregate - 2.75% annually
Merit - CalPERS 2000-2019 Experience Study
Discount rate 5.34% at June 30, 2025
Long-term expected rate
of return on assets 5.50% at June 30, 2025
Mortality, retirement,
disability, termination CalPERS 2000-2019 Experience Study Medical trend Non-Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non-Kaiser) - 6.90% for 2026 decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 5.65% for 2026 decreasing to an ultimate rate of 3.45% in 2076 DRAFT 103
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-65-
NOTE 7 - POSTEMPLOYMENT HEALTH CARE BENEFITS (OPEB) (Continued) 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, 2024 valuation were based on a review of plan experience during the period July 1, 2024 to June 30, 2025.
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, 2025 June 30, 2025 5.50% 5.20% 5.34%
June 30, 2024 June 30, 2024 5.50% 3.93% 5.50%
June 30, 2023 June 30, 2023 5.50% 3.54% 5.50%
Changes in the Net OPEB Liability
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balance at June 30, 2024 $ 1,097,950 $ 349,988 $ 747,962 (Valuation Date June 30, 2024)
Changes recognized for the measurement period:
Service cost 139,917 - 139,917
Interest 66,697 - 66,697
Difference between expected and actual experience - - - Changes In assumptions 26,359 - 26,359 Contributions -employer - 50,638 (50,638)
Net investment income - 39,342 (39,342)
Administrative expense - (1,203) 1,203
Benefit payments (50,356) (50,356) - Net Changes 182,617 38,421 144,196 Balance at June 30, 2025 $ 1,280,567 $ 388,409 $ 892,158 (Measurement Date June 30, 2025)
DRAFT 104
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-66-
NOTE 7 - POSTEMPLOYMENT HEALTH CARE BENEFITS (OPEB) (Continued) 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 (4.34 percent) or 1 percentage point higher (6.34 percent) than the current discount rate:
1% Decrease
4.34%
Discount Rate
5.34%
1% Increase
6.34%
Net OPEB Liability 1,077,015 $ $ 892,158 $ 740,374
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 $ 696,397 $ 892,158 $ 1,141,763
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB (income) of $(37,629). As of the fiscal year ended June 30, 2025, 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 $ 186,818 $ 530,433 Net difference between projected and actual earnings - 18,595 Changes in assumptions 24,026 1,192,675
$ 210,844 $ 1,741,703
Amounts reported as deferred outflows and deferred inflows of resources will be recognized in OPEB expense as follows:
Fiscal Year Ending June 30, Amount
2026 $ (226,220)
2027 (234,091)
2028 (233,411)
2029 (230,405)
2030 (226,383)
Thereafter (380,349)
DRAFT 105
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-67-
NOTE 8 - FUND BALANCES
Nonspendable, Restricted, Committed, Assigned and Unassigned (deficit) fund balances consisted of the following at June 30, 2025: General Fund Transportation Facilities DIF Local STIP TIRCP Federal Transportation
Program Lease Revenue Bonds Sales Tax Bonds Other Governmental Funds Total Governmental Funds Nonspendable Prepaid items $ 109,384 $ - $ - $ - $ - $ - $ - $ 109,384 - $ Restricted Public works - 1,296,206 - - - 19,649,343 15,795,459 23,259,382 60,000,390 Library - - - - - - 1,683,643 1,683,643 - Planning & environmental review - - - - - - 3,307,778 3,307,778 - Neighborhood services - - - - - - - 163,004 163,004 Committed Building maintenance 1,000,667 - - - - - - 1,000,667 - Capital equipment 866,245 - - - - - - - 866,245 Compensated leave 737,473 - - - - - - - 737,473 Risk management 200,000 - - - - - - - 200,000 Litigation defense 600,000 - - - - - - - 600,000 Contingency 13,981,390 - - - - - - 13,981,390 - City Hall solar removal 94,500 - - - - - - - 94,500 Assigned IT reserve 166,574 - - - - - - - 166,574 Sheriff's contract 150,000 - - - - - - - 150,000 CIP Projects 17,602,789 - - - - - - 17,602,789 - Encumbrances 8,056,800 - - - - - - 8,056,800 - FMV adjustment 148,220 - - - - - - - 148,220 Unassigned (deficit) 9,467,780 - (1,198,786) (248,052) (1,613,632) - (2,741,283) 3,666,027 - Total $ 53,181,822 $ 1,296,206 $ (1,198,786) $ (248,052) $ (1,613,632) $ 19,649,343 $ 15,795,459 $ 25,672,524 $ 112,534,884 NOTE 9 - RISK MANAGEMENT
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 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. Primary Self-Insurance Programs of the Authority
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.
DRAFT 106
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-68-
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://cjpia.org/coverage/risk-sharingpools/.
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 2024-25 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.
DRAFT 107
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-69-
NOTE 9 - RISK MANAGEMENT (Continued)
C. Purchased Insurance
Pollution Legal Liability Insurance
The City 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. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 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 property is currently insured according to a schedule of covered property submitted by the City of Goleta to the Authority. City property currently has all-risk property insurance protection in the amount of $43,860,491. 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.
Special Event Tenant User Liability Insurance
The City further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is facilitated by the Authority.
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 2024-25.
DRAFT 108
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-70-
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.
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, 2024.
Encumbrances as of June 30, 2025, are as shown in the following:
Major Funds:
General Fund $ 23,187,301
Transportation Facilities DIF Special Revenue Fund 4,027,393 Local STIP (State Transportation Improvement Program) 4,765,968 TIRCP (Transit and Intercity Rail Capital Program) 9,182,606 Federal Transportation Program Fund 13,674,115
Lease Revenue Bonds, Series 2025A 19,448,355
Local Measure A Transportation Sales Tax Revenue Bonds, Series 2025 15,627,163 Other Governmental Funds 58,175,496
Total Encumbrances $ 148,088,397
Construction
Listed below are the projects for uncompleted contracts outstanding as of June 30, 2025.
FY 2024-25 Projects $ 37,536,362
DRAFT 109
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-71-
NOTE 11 - OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES
Deficit Fund Balances
The following funds reported deficit fund balances at June 30, 2025:
Major Governmental Funds:
Local STIP $ (1,198,786)
TIRCP (248,052)
Federal Transportation Program (1,613,632)
Nonmajor Governmental Funds:
Measure A Grants (111,407)
County Fire DIF (299,417)
RSTP State Grant (420,350)
Miscellaneous Grants (130,538)
HSIP (3,720)
HMGP (12,074)
Active Transportation Program (1,763,543)
Cal-Fire Grants (234)
Excess Expenditures over Appropriations
The Comstock Plover Endowment reported excess expenditures $(172) over appropriations as of June 30, 2025.
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).
DRAFT 110
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-72-
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 had a settlement receivable from the City of Goleta that was paid off as of June 30, 2025. 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, 2025, is as follows:
Balance
June 30, 2024 Additions Deletions
Balance
June 30, 2025
Due Within
One Year
Tax allocation bonds $ 10,410,000 $ - $ 325,000 $ 10,085,000 $ 345,000 Less deferred amount:
Premium on bonds issued 1,200,155 - 61,811 1,138,344 61,811 Total
DRAFT
$ 11,610,155 $ - $ 386,811 $ 11,223,344 $ 406,811
111
City of Goleta
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
-73-
NOTE 12 - SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY (Continued)
B. Long-Term Liabilities (Continued)
Tax Allocation Refunding Bonds 2020
The annual requirements to amortize the Tax Allocation Bonds outstanding as of June 30, 2025, are as follows:
Fiscal Year Ending June 30, Principal Interest Total
2026 $ 345,000 $ 418,325 $ 763,325
2027 365,000 400,575 765,575
2028 385,000 381,825 766,825
2029 400,000 362,200 762,200
2030 420,000 341,700 761,700
2031-2035 2,415,000 1,402,700 3,817,700
2036-2040 2,945,000 865,700 3,810,700
2041-2044 2,810,000 230,200 3,040,200
Total $ 10,085,000 $ 4,403,225 $ 14,488,225
NOTE 13 - CHANGE WITHIN THE FINANCIAL REPORTING ENTITY
Per GASB 100, the City is required to restate its June 30, 2024 governmental funds’ fund balance. The Transportation Facilities DIF Fund, Local STIP Fund, and TIRCP Fund were formerly reported as non-major and the Coronavirus State & Local Fiscal Recovery Fund was formerly reported as major. This qualifies as a change to or within the financial reporting entity, under the guidance of GASB 100.
Changes to governmental fund balances are as follows:
Transportation
Facilities DIF Local STIP TIRCP
Coronavirus State
& Local Fiscal
Recovery
Total Nonmajor
Governmental
Funds
Fund balance, beginning of year, as previously reported $ - $ - $ - $ - $ 33,803,612 Change from nonmajor to major fund 8,914,576 (4,309) 444 - (8,910,711) Fund balance, beginning of year, as restated
DRAFT
$ 8,914,576 $ (4,309) $ 444 $ - $ 24,892,901
112
REQUIRED SUPPLEMENTARY INFORMATION SECTION
DRAFT 113
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 114
City of Goleta
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
General Fund
For the Year Ended June 30, 2025
-74-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Taxes $ 44,252,300 $ 44,049,500 $ 46,278,447 $ 2,228,947 Franchise fees 1,681,050 1,566,566 1,632,464 65,898
Intergovernmental 56,000 67,500 66,934 (566)
Charges for services 2,283,100 3,415,900 2,546,792 (869,108) Licenses and permits 347,800 359,500 322,539 (36,961)
Fine and forfeitures 157,500 183,500 235,506 52,006
Use of money and property 1,012,000 1,026,200 2,125,162 1,098,962 Donations 80,000 584,709 591,862 7,153
Other 500 120,500 972,471 851,971
Total revenues 49,870,250 51,373,875 54,772,177 3,398,302 EXPENDITURES:
Current:
General government 13,396,045 14,761,137 12,629,111 2,132,026 Public safety 11,542,800 11,542,800 11,501,844 40,956
Public works 14,344,100 19,647,552 10,427,439 9,220,113 Library 629,400 1,162,075 940,849 221,226
Planning & environmental review 5,318,000 6,201,730 4,689,594 1,512,136 Neighborhood services 2,774,200 2,797,558 2,303,769 493,789 Capital outlay 2,001,900 17,856,509 2,784,112 15,072,397 Debt service:
Principal 240,850 240,850 240,850 -
Interest 385,645 500,638 385,645 114,993
Total expenditures 50,632,940 74,710,849 45,903,213 28,807,636 Excess of revenues over (under) expenditures (762,690) (23,336,974) 8,868,964 32,205,938 OTHER FINANCING SOURCES (USES):
Transfers in 54,100 24,083 9,290 (14,793)
Transfers out (808,200) (848,200) (703,042) 145,158
Subscription/lease acquisition - 212,418 212,418 - Total other financing sources (uses) (754,100) (611,699) (481,334) 130,365 Net change in fund balance (1,516,790) (23,948,673) 8,387,630 32,336,303 Fund balance, beginning 44,794,192 44,794,192 44,794,192 - Fund balance, ending $ 43,277,402 $ 20,845,519 $ 53,181,822 $ 32,336,303 Budgeted Amounts
DRAFT 115
City of Goleta
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Transportation Facilities DIF Special Revenue Fund
For the Year Ended June 30, 2025
-75-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ 85,000 $ 85,000 $ 209,862 $ 124,862 Developer fees 3,056,400 1,499,400 2,393,166 893,766
Total revenues 3,141,400 1,584,400 2,603,028 1,018,628
EXPENDITURES
Current:
Public works 10,000 147,200 21,000 126,200
Capital outlay 3,300,000 14,108,432 10,197,239 3,911,193 Total expenditures 3,310,000 14,255,632 10,218,239 4,037,393 Excess of revenues over (under) expenditures (168,600) (12,671,232) (7,615,211) 5,056,021 OTHER FINANCING SOURCES (USES):
Transfers out - (3,159) (3,159) - Total other financing sources (uses) - (3,159) (3,159) - Net change in fund balance (168,600) (12,674,391) (7,618,370) 5,056,021 Fund balance, beginning 8,914,576 8,914,576 8,914,576 - Fund balance, ending $ 8,745,976 $ (3,759,815) $ 1,296,206 $ 5,056,021 Budgeted Amounts
DRAFT 116
City of Goleta
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Local STIP Special Revenue Fund
For the Year Ended June 30, 2025
-76-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 11,386,694 - $ $ 5,411,556 $ (5,975,138) Total revenues 11,386,694 - 5,411,556 (5,975,138)
EXPENDITURES
Capital outlay 11,372,000 - 6,606,033 4,765,967
Total expenditures 11,372,000 - 6,606,033 4,765,967
Net change in fund balance - 14,694 (1,194,477) (1,209,171) Fund balance (deficit), beginning (4,309) (4,309) (4,309) - Fund balance (deficit), ending $ (4,309) $ 10,385 $ (1,198,786) $ (1,209,171) Budgeted Amounts
DRAFT 117
City of Goleta
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
TIRCP Special Revenue Fund
For the Year Ended June 30, 2025
-77-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 14,858,500 - $ $ 5,427,842 $ (9,430,658) Total revenues 14,858,500 - 5,427,842 (9,430,658)
EXPENDITURES
Capital outlay 14,858,944 - 5,676,338 9,182,606
Total expenditures 14,858,944 - 5,676,338 9,182,606
Net change in fund balance - (444) (248,496) (248,052)
Fund balance, beginning 444 444 444 - Fund balance (deficit), ending $ 444 $ - $ (248,052) $ (248,052) Budgeted Amounts
DRAFT 118
City of Goleta
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Federal Transportation Program Special Revenue Fund
For the Year Ended June 30, 2025
-78-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 39,841,825 $ 9,295,091 $ (30,546,734) Total revenues - 39,841,825 9,295,091 (30,546,734)
EXPENDITURES
Capital outlay - 39,042,924 10,109,823 28,933,101
Total expenditures - 39,042,924 10,109,823 28,933,101
Excess of revenues over (under) expenditures - 798,901 (814,732) (1,613,633) OTHER FINANCING SOURCES (USES):
Transfers in - 3,159 3,159 - Total other financing sources (uses) - 3,159 3,159 - Net change in fund balance - 802,060 (811,573) (1,613,633) Fund balance (deficit), beginning (802,059) (802,059) (802,059) - Fund balance (deficit), ending $ (802,059) $ (1,613,632) 1 $ $ (1,613,633) Budgeted Amounts
DRAFT 119
City of Goleta
Schedule of Proportionate Share of Net Pension Liability and Related Ratios as of the Measurement Date
Last Ten Years
-79-
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
6/30/2015 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% 76.68%
6/30/2023 0.10984% 5,492,467 10,758,400 51.05% 76.21%
6/30/2024 0.11361% 5,494,711 11,925,407 46.08% 78.08%
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.
DRAFT 120
City of Goleta
Schedule of Pension Contributions
Last Ten Years
-80-
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
6/30/2016 $ 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%
6/30/2024 1,441,234 (1,441,234) - 11,925,407 12.09%
6/30/2025 1,638,882 (1,638,882) - 13,041,989 12.57%
Notes to Schedule:
Change in Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 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. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
DRAFT 121
City of Goleta
Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Years*
-81-
Measurement Period 2025 2024 2023 2022 2021
Total OPEB Liability
Service cost $ 139,917 $ 112,256 $ 109,252 $ 328,789 $ 319,989 Interest on the total OPEB liability 66,697 62,714 56,126 69,274 54,866 Difference between expected and actual experience - (65,316) - (516,973) (16,631) Changes in assumptions 26,359 (15,721) - (1,679,171) - Changes in benefit terms - - - - - Benefit payments (50,356) (47,945) (49,266) (32,268) (30,499) Net change in total OPEB Liability 182,617 45,988 116,112 (1,830,349) 327,725 Total OPEB liability - beginning 1,097,950 1,051,962 935,850 2,766,199 2,438,474 Total OPEB liability - ending [A] 1,280,567 1,097,950 1,051,962 935,850 2,766,199 Plan Fiduciary Net Position
Contributions - employer 50,638 48,316 49,607 365,823 - Contributions - employee - - - - - Net Investment income (loss) 39,342 32,537 19,905 (32,007) - Administrative/trustee expenses (1,203) (2,279) (2,111) (324) - Benefit payments (50,356) (47,945) (49,266) (32,268) - Net change in plan fiduciary net position 38,421 30,629 18,135 301,224 - Total plan fiduciary net position - beginning 349,988 319,359 301,224 - - Total plan fiduciary net position - ending [B] 388,409 349,988 319,359 301,224 - Net OPEB Liability - ([A]-[B]) $ 892,158 $ 747,962 $ 732,603 $ 634,626 $ 2,766,199 Plan fiduciary net position as a percentage of the
total OPEB liability 30.33% 31.88% 30.36% 32.19% 0.00%
Total net OPEB liability as a percentage
of covered payroll $ 12,992,843 $ 11,901,296 $ 12,013,770 $ 10,242,422 $ 8,897,999 Measurement Period 2020 2019 2018
Total OPEB Liability
Service cost $ 348,492 $ 318,822 $ 290,904
Interest on the total OPEB liability 84,042 67,773 48,449 Difference between expected and actual experience 33,392 43,923 223,452 Changes in assumptions (237,684) - - Changes in benefit terms - - - Benefit payments (30,876) (16,745) (27,438) Net change in total OPEB Liability 197,366 413,773 535,367 Total OPEB liability - beginning 2,241,108 1,827,335 1,291,968 Total OPEB liability - ending [A] 2,438,474 2,241,108 1,827,335 Plan Fiduciary Net Position
Contributions - employer - - - Contributions - employee - - - Net Investment income (loss) - - - Administrative/trustee expenses - - - Benefit payments - - - Net change in plan fiduciary net position - - - Total plan fiduciary net position - beginning - - - Total plan fiduciary net position - ending [B] - - - Net OPEB Liability - ([A]-[B]) $ 2,438,474 $ 2,241,108 $ 1,827,335 Plan fiduciary net position as a percentage of the
total OPEB liability 0.00% 0.00% 0.00%
Total net OPEB liability as a percentage
of covered payroll $ 6,733,325 $ 6,923,683 $ 6,317,404
Notes to Schedule:
Benefits are not based on a measure of pay, therefore covered payroll is used For the fiscal year ended June 30, 2025:
Discount rate was updated based on municipal bond rate as of the measurement date and crossover test. *The City opened a Section 115 Trust account administered through Public Agency Retirement Services (PARS) during the fiscal year ended June 30, 2022.
DRAFT 122
City of Goleta
Schedule of OPEB Contributions
Last Ten Years*
-82-
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% June 30, 2024 175,642 (48,316) 127,326 11,901,296 0.41% June 30, 2025 218,215 (50,638) 167,577 12,992,843 0.39% 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.
DRAFT 123
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 124
Supplementary Information Section
DRAFT 125
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 126
City of Goleta
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Lease Revenue Bond Capital Project Fund
For the Year Ended June 30, 2025
-83-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 200,988 $ 200,988
Total revenues - - 200,988 200,988
EXPENDITURES
Public works - 17,887,097 - 17,887,097
Capital outlay - 1,542,700 - 1,542,700
Debt service:
Cost of issuance - 334,969 316,411 18,558
Total expenditures - 19,764,766 316,411 19,448,355
Excess of revenues over (under) expenditures (19,764,766) - (115,423) 19,649,343 OTHER FINANCING SOURCES (USES):
Proceeds from issuance of debt - 18,735,000 18,735,000 - Premium from issuance of debt - 1,029,766 1,029,766 - Total other financing sources (uses) - 19,764,766 19,764,766 - Net change in fund balance - - 19,649,343 19,649,343 Fund balance, beginning - - - - Fund balance, ending $ - $ - $ 19,649,343 $ 19,649,343 Budgeted Amounts
DRAFT 127
City of Goleta
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Sales Tax Bonds Capital Project Fund
For the Year Ended June 30, 2025
-84-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 168,295 $ 168,295
Total revenues - - 168,295 168,295
EXPENDITURES
Capital outlay - 16,270,203 657,789 15,612,414
Debt service:
Cost of issuance - 343,216 328,466 14,750
Total expenditures - 16,613,419 986,255 15,627,164
Excess of revenues over (under) expenditures - (16,613,419) (817,960) 15,795,459 OTHER FINANCING SOURCES (USES):
Proceeds from issuance of debt - 14,655,000 14,655,000 - Premium from issuance of debt - 1,958,419 1,958,419 - Total other financing sources (uses) - 16,613,419 16,613,419 - Net change in fund balance - 15,795,459 - 15,795,459 Fund balance, beginning - - - - Fund balance, ending $ - $ 15,795,459 - $ $ 15,795,459 Budgeted Amounts
DRAFT 128
City of Goleta
Nonmajor Governmental Funds Special Revenue Funds - Descriptions For the Year Ended June 30, 2025
-85-
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 2107.5, 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 one-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. Tax levy is scheduled to expire March 2040, unless voters approve extension-renewal.
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.
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 10.
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.
Environmental Programs - This fund is used to account for receipts and expenditures relating to the City's environmental mitigation programs.
DRAFT 129
City of Goleta
Nonmajor Governmental Funds Special Revenue Funds - Descriptions For the Year Ended June 30, 2025
-86-
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 State Grant - 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.
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.
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.
California Library Grants - This fund is used to account for state grants to fund library related programs.
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 for Hollister and Goleta Valley Center Community Center Crosswalk.
DRAFT 130
City of Goleta
Nonmajor Governmental Funds Special Revenue Funds - Descriptions For the Year Ended June 30, 2025
-87-
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 & 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 and 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.
*Coronavirus State & Local Fiscal Recovery - This account is used to account for the funding from the American Rescue Plan Act to support expenditures or losses incurred due to the COVID-19 public health emergency.
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.
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.
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.
DRAFT 131
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 132
City of Goleta
Nonmajor Governmental Funds Special Revenue Funds - Descriptions For the Year Ended June 30, 2025
-88-
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.
Affordable Housing DIF - This fund is used to account for the affordable housing development impact fees.
Park DIF - This fund accounts for park development impact fees.
Active Transportation Program - This fund accounts for State grant funds for transportation projects.
Cal-Fire Grants - This fund is used to account for Cal-Fire grants for special capital improvement projects related to parks and open spaces.
Quimby - This fund is used to receive fees within the California Subdivision Map Act that requires developers to either contribute land or pay fees to the local municipal government to provide recreational facilities within the development area.
United States Department of Agriculture - This fund is to account for grant funding received from the U.S. Department of Agriculture, which provides federal funding for programs related to agriculture, natural resource conservation, rural development, and nutrition assistance. * Note that no budget was adopted for this fund.
DRAFT 133
City of Goleta
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-89-
Special Revenue Funds
Gas Tax Transportation
Road
Maintenance and
Rehabilitation Measure A
Measure A
Grants
ASSETS
Cash and investments $ 149,756 $ 183,160 $ 675,530 $ 4,741,370 $ - Receivables, net:
Accounts 76,441 6,483 157,064 180,013 -
Interest 1,029 1,350 4,343 33,585 - TOTAL ASSETS $ 227,226 $ 190,993 $ 836,937 $ 4,954,968 $ - LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ - $ 22,402 $ - $ 409,950 $ 1,762
Accrued salaries and benefits - - - - - Retentions payable - 31 - 13,085 8,508 Deposits payable - - - - - Unearned revenue - - - - - Due to other funds - - - - 101,137 TOTAL LIABILITIES - 22,433 - 423,035 111,407
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - - TOTAL DEFERRED INFLOWS
OF RESOURCES - - - - - FUND BALANCES (DEFICIT)
Restricted 227,226 168,560 836,937 4,531,933 - Unassigned - - - - (111,407) TOTAL FUND BALANCES (DEFICIT) 227,226 168,560 836,937 4,531,933 (111,407)
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 227,226 $ 190,993 $ 836,937 $ 4,954,968 $ - DRAFT 134
(Continued)
-90-
Solid Waste
Program
Public Safety
Donations
County Fire
DIF
Library Facilities
DIF
Sheriff Facilities
DIF Housing In-Lieu
Storm Drain
DIF
$ 1,877,204 $ - $ - $ 335,070 $ 155,399 $ 1,772,193 $ 599,479 146,981 - 299,417 - - - -
12,504 - - 1,384 1,067 10,566 4,143
$ 2,036,689 $ - $ 299,417 $ 336,454 $ 156,466 $ 1,782,759 $ 603,622 $ 395,471 $ - $ - $ 53,499 $ - $ - $ 38,842
20,431 - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - 299,417 - - - - 415,902 - 299,417 53,499 - - 38,842 - - 299,417 - - - -
- - 299,417 - - - -
1,620,787 - - 282,955 156,466 1,782,759 564,780
- - (299,417) - - - - 1,620,787 - (299,417) 282,955 156,466 1,782,759 564,780 $ 2,036,689 $ - $ 299,417 $ 336,454 $ 156,466 $ 1,782,759 $ 603,622 Special Revenue Funds
DRAFT 135
City of Goleta
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-91-
Environmental
Programs Fire Facilities DIF
Long Range
Development
Plan Public Safety
ASSETS
Cash and investments $ 191,290 $ 4,094,206 $ 84,513 $ - Receivables, net:
Accounts - - - -
Interest 1,313 27,140 - - TOTAL ASSETS $ 192,603 $ 4,121,346 $ 84,513 $ - LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ - $ 3,868 $ 27,111 $ - Accrued salaries and benefits - - - - Retentions payable - - - - Deposits payable - - - - Unearned revenue - - - - Due to other funds - - - - TOTAL LIABILITIES - 3,868 27,111 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - TOTAL DEFERRED INFLOWS
OF RESOURCES - - - - FUND BALANCES (DEFICIT)
Restricted 192,603 4,117,478 57,402 - Unassigned - - - - TOTAL FUND BALANCES (DEFICIT) 192,603 4,117,478 57,402 - TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 192,603 $ 4,121,346 $ 84,513 $ - Special Revenue Funds
DRAFT 136
(Continued)
-92-
Special Revenue Funds
Monarch Butterfly
Habitat
Management
Plan
Solid Waste
Recycling
RSTP State
Grant
Comstock Plover
Endowment
Miscellaneous
Grants
Developer
Agreement
$ 5,955 $ 134,794 $ - $ 156,596 $ - $ 2,069,923
- - - - 7,500 -
- - - 1,076 - - $ 5,955 $ 134,794 $ - $ 157,672 $ 7,500 $ 2,069,923 $ 5,955 $ 413 $ - $ 7,172 $ 2,820 $ 544,904
- - - - - -
- - - - - -
- - - 150,500 - -
- - - - - -
- - 420,350 - 127,718 - 5,955 413 420,350 157,672 130,538 544,904 - - - - 7,500 -
- - - - 7,500 -
- 134,381 - - - 1,525,019
- - (420,350) - (130,538) -
- 134,381 (420,350) - (130,538) 1,525,019
$ 5,955 $ 134,794 $ - $ 157,672 $ 7,500 $ 2,069,923
DRAFT 137
City of Goleta
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-93-
Special Revenue Funds
Bicycle and
Pedestrian DIF
California Library
Grants CDBG HSIP
ASSETS
Cash and investments $ 288,933 $ 1,844,959 $ - $ - Receivables, net:
Accounts - - 58,850 -
Interest 1,984 - - - TOTAL ASSETS $ 290,917 $ 1,844,959 $ 58,850 $ - LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ - $ 98,865 $ 24,846 $ - Accrued salaries and benefits - - - - Retentions payable - - - - Deposits payable - - - - Unearned revenue - 1,746,094 - - Due to other funds - - 30,494 3,720 TOTAL LIABILITIES - 1,844,959 55,340 3,720
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - TOTAL DEFERRED INFLOWS
OF RESOURCES - - - - FUND BALANCES (DEFICIT)
Restricted 290,917 - 3,510 - Unassigned - - - (3,720)
TOTAL FUND BALANCES (DEFICIT) 290,917 - 3,510 (3,720)
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 290,917 $ 1,844,959 $ 58,850 $ - DRAFT 138
(Continued)
-94-
Special Revenue Funds
Street Lighting PEG LSTP
Housing &
Community
Development Cal OES
FHWA - FEMA
Reimbursement
OTS Public
Safety
$ 371,357 $ 289,057 $ 154,166 $ - $ 14,231 $ 58,107 $ - - 12,030 - 729,866 - - -
2,651 1,998 - - - - - $ 374,008 $ 303,085 $ 154,166 $ 729,866 $ 14,231 $ 58,107 $ - $ 30,578 $ 2,713 $ - $ - $ - $ - $ - - - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - 729,866 - - - 30,578 2,713 - 729,866 - - -
- - - - - - -
- - - - - - -
343,430 300,372 154,166 - 14,231 58,107 -
- - - - - - -
343,430 300,372 154,166 - 14,231 58,107 - $ 374,008 $ 303,085 $ 154,166 $ 729,866 $ 14,231 $ 58,107 $ - DRAFT 139
City of Goleta
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-95-
Coronavirus State
& Local Fiscal
Recovery
(formerly major)
Certified Access
Specialist HMGP Library Services
ASSETS
Cash and investments $ - $ 58,809 $ - $ 346,109
Receivables, net:
Accounts - - - 244,501
Interest - 401 - 1,417
TOTAL ASSETS $ - $ 59,210 $ - $ 592,027
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ - $ 158 $ - $ 201
Accrued salaries and benefits - - - 40,346
Retentions payable - - - - Deposits payable - - - - Unearned revenue - - - - Due to other funds - - 12,074 - TOTAL LIABILITIES - 158 12,074 40,547
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - TOTAL DEFERRED INFLOWS
OF RESOURCES - - - - FUND BALANCES (DEFICIT)
Restricted - 59,052 - 551,480
Unassigned - - (12,074) - TOTAL FUND BALANCES (DEFICIT) - 59,052 (12,074) 551,480
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ - $ 59,210 $ - $ 592,027 Special Revenue Funds
DRAFT 140
(Continued)
-96-
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
$ 448,766 $ 43,422 $ 254,539 $ 11,334 $ 167,739 $ 39,930 $ 682,398 - - - - - - -
2,793 79 1,739 65 924 - 1,684
$ 451,559 $ 43,501 $ 256,278 $ 11,399 $ 168,663 $ 39,930 $ 684,082 $ 10,435 $ 38 $ 27,256 $ 37 $ 25,262 $ 11,463 $ 877
26,235 10,565 - 10,831 - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - - 36,670 10,603 27,256 10,868 25,262 11,463 877 - - - - - - -
- - - - - - -
414,889 32,898 229,022 531 143,401 28,467 683,205
- - - - - - -
414,889 32,898 229,022 531 143,401 28,467 683,205
$ 451,559 $ 43,501 $ 256,278 $ 11,399 $ 168,663 $ 39,930 $ 684,082 DRAFT 141
City of Goleta
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-97-
Special Revenue Funds
Community
Center
Affordable
Housing DIF Park DIF
Active
Transportation
Program
ASSETS
Cash and investments $ 192,852 $ 6,938 $ 2,532,630 $ - Receivables, net:
Accounts 4,946 - - -
Interest - 48 39,138 - TOTAL ASSETS $ 197,798 $ 6,986 $ 2,571,768 $ - LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts payable $ 24,672 $ - $ 48,993 $ - Accrued salaries and benefits 18,664 - - - Retentions payable - - 202,087 - Deposits payable 9,199 - - - Unearned revenue - - - - Due to other funds - - - 1,763,543 TOTAL LIABILITIES 52,535 - 251,080 1,763,543
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - - TOTAL DEFERRED INFLOWS
OF RESOURCES - - - - FUND BALANCES (DEFICIT)
Restricted 145,263 6,986 2,320,688 - Unassigned - - - (1,763,543) TOTAL FUND BALANCES (DEFICIT) 145,263 6,986 2,320,688 (1,763,543)
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES $ 197,798 $ 6,986 $ 2,571,768 $ - DRAFT 142
(Concluded)
-98-
Cal-Fire Grants Quimby
United State
Department of
Agriculture
Total Nonmajor
Governmental
Funds
$ - $ 6,411,500 $ 31,444,214 - $
543,940 - 1,794 2,469,826
- 22,406 - 176,827
$ 543,940 $ 6,433,906 $ 1,794 $ 34,090,867
$ 495,324 $ - $ - $ 2,315,887
- - - 127,072
- - - 223,711
- - - 159,699
- - - 1,746,094
48,850 - 1,794 3,538,963
544,174 - 1,794 8,111,426
- - - 306,917
- - - 306,917
- 6,433,906 28,413,807 -
(234) - - (2,741,283)
(234) 6,433,906 - 25,672,524
$ 543,940 $ 6,433,906 $ 1,794 $ 34,090,867
Special Revenue Funds
DRAFT 143
City of Goleta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
-99-
Special Revenue Funds
Gas Tax Transportation Road Maintenance and Rehabilitation Measure A Measure A Grants REVENUES Taxes $ - $ - $ - $ 2,278,140 $ - Franchise fees - - - - - Intergovernmental 899,770 36,157 891,289 - 1,200,797
Charges for services - - - - - Fines and forfeitures - - - - - Use of money and property 26,163 12,318 44,412 290,485 - Developer fees - - - - - Donations - - - - - Other - - - - - Special assessments - - - - - Total revenues 925,933 48,475 935,701 2,568,625 1,200,797 EXPENDITURES Current: General government - - - - - Public safety - - - - - Public works 2,109,265 - 1,417,724 1,805,889 - Library - - - - - Planning & environmental review - - - - - Neighborhood services - - - - - Capital outlay 84 152,730 - 1,279,013 71,129 Debt service:
Interest - - - 99,735 - Total expenditures 2,109,349 152,730 1,417,724 3,184,637 71,129 Excess of revenues over (under) expenditures (1,183,416) (104,255) (482,023) (616,012) 1,129,668 OTHER FINANCING SOURCES (USES) Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - Net change in fund balances (1,183,416) (104,255) (482,023) (616,012) 1,129,668 Fund balances (deficit), beginning, as previously stated 1,410,642 272,815 1,318,960 5,147,945 (1,241,075) Change within financial reporting entity (nonmajor to major) - - - - - Fund balances (deficit), beginning, as restated 1,410,642 272,815 1,318,960 5,147,945 (1,241,075) Fund balances (deficit), ending $ 227,226 $ 168,560 $ 836,937 $ 4,531,933 $ (111,407) DRAFT 144
(Continued)
-100-
Special Revenue Funds Solid Waste Program
Public Safety
Donations County Fire DIF
Library Facilities DIF Sheriff Facilities DIF Housing In-Lieu Storm Drain DIF -$ $ - $ - $ - $ - $ - $ -
1,432,990 - - - - - -
- - - - - - -
10,736 - - - - - -
- - - - - - -
81,681 - - 8,885 7,327 72,381 29,366
- - - 203,861 - - 108
- - - - - - -
25,000 - - - - - -
- - - - - - -
1,550,407 - - 212,746 7,327 72,381 29,474
- - - - - - -
- 11,748 - - - - -
1,518,049 - - - - - 38,819
- - - 117,748 - - -
- - - - - 25,000 -
- - - - - - -
- - - - - - 35,318
- - - - - - - 1,518,049 11,748 - 117,748 - 25,000 74,137 32,358 (11,748) - 94,998 7,327 47,381 (44,663)
- - - - - 250,000 -
- - - - - - -
- - - - - 250,000 -
32,358 (11,748) - 94,998 7,327 297,381 (44,663)
1,588,429 11,748 (299,417) 187,957 149,139 1,485,378 609,443 - - - - - - -
1,588,429 11,748 (299,417) 187,957 149,139 1,485,378 609,443 $ 1,620,787 $ - $ (299,417) $ 282,955 $ 156,466 $ 1,782,759 $ 564,780 DRAFT 145
City of Goleta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
-101-
Special Revenue Funds Environmental Programs Fire Facilities DIF Long Range
Development
Plan Public Safety REVENUES
Taxes $ - $ - $ - $ - Franchise fees - - - -
Intergovernmental - - - 194,663
Charges for services - - - - Fines and forfeitures - - - - Use of money and property 9,000 184,898 - - Developer fees - 246,047 - - Donations 575 - - - Other - - - - Special assessments - - - - Total revenues 9,575 430,945 - 194,663 EXPENDITURES Current: General government - - - - Public safety - - - 194,663 Public works - 54,000 - - Library - - - - Planning & environmental review - - - - Neighborhood services - - - - Capital outlay - 13,358 2,151,029 - Debt service:
Interest - - - - Total expenditures - 67,358 2,151,029 194,663 Excess of revenues over (under) expenditures 9,575 363,587 (2,151,029) - OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 9,575 363,587 (2,151,029) - Fund balances (deficit), beginning, as previously stated 183,028 3,753,891 2,208,431 - Change within financial reporting entity (nonmajor to major) - - - - Fund balances (deficit), beginning, as restated 183,028 3,753,891 2,208,431 - Fund balances (deficit), ending $ 192,603 $ 4,117,478 $ 57,402 $ - DRAFT 146
(Continued)
-102-
Special Revenue Funds
Monarch Butterfly Habitat Management Plan Solid Waste Recycling RSTP State Grant Comstock Plover Endowment Miscellaneous Grants Local STIP (formerly nonmajor) Developer
Agreement
$ - $ - -$ $ - $ - $ -
- - - - - -
2,328,616 8,447 - - 83,333 1,554,760
- - - - - -
- - - - - -
- - - 7,172 - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
2,328,616 8,447 - 7,172 83,333 1,554,760
- - - - - -
- - - - - -
- 9,758 - - 516 -
- - - - - -
- - - 14,930 22,555 -
- - - - 7,500 -
2,117,771 - - - 120,807 644,904
- - - - - -
2,117,771 9,758 - 14,930 151,378 644,904
210,845 (1,311) - (7,758) (68,045) 909,856
- - - - - -
- - - - - -
- - - - - -
210,845 (1,311) - (7,758) (68,045) 909,856
(210,845) 135,692 (420,350) 7,758 (62,493) (4,309) 615,163 - - - - - 4,309 -
(210,845) 135,692 (420,350) 7,758 (62,493) - 615,163
$ - $ 134,381 $ (420,350) $ - $ (130,538) $ - $ 1,525,019 DRAFT 147
City of Goleta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
-103-
Special Revenue Funds
Bicycle and Pedestrian DIF California Library Grants CDBG HSIP REVENUES Taxes $ - $ - $ - $ - Franchise fees - - - -
Intergovernmental - 379,086 125,020 371,244
Charges for services - - - - Fines and forfeitures - - - - Use of money and property 13,619 - - - Developer fees 93 - - - Donations - - - - Other - - - - Special assessments - - - - Total revenues 13,712 379,086 125,020 371,244 EXPENDITURES Current: General government - - - - Public safety - - - - Public works - - - - Library - - - - Planning & environmental review - - - - Neighborhood services - - 72,219 - Capital outlay - 379,086 40,001 19,985 Debt service:
Interest - - - - Total expenditures - 379,086 112,220 19,985 Excess of revenues over (under) expenditures 13,712 - 12,800 351,259 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (9,290) - Total other financing sources (uses) - - (9,290) - Net change in fund balances 13,712 - 3,510 351,259 Fund balances (deficit), beginning, as previously stated 277,205 - - (354,979) Change within financial reporting entity (nonmajor to major) - - - - Fund balances (deficit), beginning, as restated 277,205 - - (354,979) Fund balances (deficit), ending $ 290,917 $ - $ 3,510 $ (3,720) DRAFT 148
(Continued)
-104-
Special Revenue Funds
Street Lighting PEG LSTP Housing &
Community
Development Cal OES
FHWA - FEMA Reimbursement OTS Public Safety
$ - $ - $ - $ - $ - $ - $ -
- 48,789 - - - - -
- - 734,544 729,866 - - 81,846
- - - - - - -
- - - - - - -
17,052 13,179 - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
311,646 - - - - - -
328,698 61,968 734,544 729,866 - - 81,846
- - - - - - -
- - - - - - 50,201
308,931 28,971 339,209 - - - 18,091
- - - - - - -
- - - - - - -
- - - - - - -
- - - 729,866 - - -
- - - - - - -
308,931 28,971 339,209 729,866 - - 68,292
19,767 32,997 395,335 - - - 13,554
- - - - - - -
- - - - - - -
- - - - - - -
19,767 32,997 395,335 - - - 13,554
323,663 267,375 (241,169) - 14,231 58,107 (13,554)
- - - - - - -
323,663 267,375 (241,169) - 14,231 58,107 (13,554)
$ 343,430 $ 300,372 $ 154,166 $ - $ 14,231 $ 58,107 $ - DRAFT 149
City of Goleta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
-105-
Coronavirus State & Local Fiscal Recovery
(formerly major) Certified Access Specialist
TIRCP (formerly
non-major) HMGP Library Services REVENUES
Taxes $ - $ - $ - $ 628,590 Franchise fees - - - -
Intergovernmental 1,051,360 - 59,608 - Charges for services - - - - Fines and forfeitures - - - - Use of money and property - 2,623 - 17,094 Developer fees - - - - Donations - - - - Other - - - - Special assessments - 53,790 - - Total revenues 1,051,360 56,413 59,608 645,684 EXPENDITURES Current: General government - - - - Public safety - - - - Public works - - - - Library - 311 - 685,512 Planning & environmental review - - - - Neighborhood services - - - - Capital outlay 1,051,360 - - - Debt service:
Interest - - - - Total expenditures 1,051,360 311 - 685,512 Excess of revenues over (under) expenditures - 56,102 59,608 (39,828) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances - 56,102 59,608 (39,828) Fund balances (deficit), beginning, as previously stated - 2,950 444 (71,682) 591,308 Change within financial reporting entity (nonmajor to major) - - (444) - - Fund balances (deficit), beginning, as restated - 2,950 - (71,682) 591,308 Fund balances (deficit), ending $ - $ 59,052 $ - $ (12,074) $ 551,480 Special Revenue Funds
DRAFT 150
(Continued)
-106-
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 $ - $ - $ - $ - $ - $ - $ - - - - - - - -
829,862 193,729 165,212 184,855 189,586 17,994 -
- 432 - 6,900 - - -
- 294 - 1,350 - - -
9,724 3,983 9,775 4,197 4,273 - 4,739
- - - - - - 654,453
- 260 - 25,783 - - -
- - - 1 - - -
- - - - - - -
839,586 198,698 174,987 223,086 193,859 17,994 659,192
- - 49,252 - - - -
- - - - - - -
- - - - - - 5,700
770,134 193,343 147,369 242,833 207,732 17,986 -
- - - - - - -
- - - - - - -
- - - - - - 16,956
- - - - - - -
770,134 193,343 196,621 242,833 207,732 17,986 22,656
69,452 5,355 (21,634) (19,747) (13,873) 8 636,536
- - - - - - -
- - - - - - -
- - - - - - -
69,452 5,355 (21,634) (19,747) (13,873) 8 636,536
345,437 27,543 250,656 20,278 157,274 28,459 46,669
- - - - - - -
345,437 27,543 250,656 20,278 157,274 28,459 46,669
$ 414,889 $ 32,898 $ 229,022 $ 531 $ 143,401 $ 28,467 $ 683,205 DRAFT 151
City of Goleta
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
-107-
Special Revenue Funds
Community Center Affordable Housing DIF Park DIF Active Transportation Program
REVENUES
Taxes $ - $ - $ - $ - Franchise fees - - - -
Intergovernmental - - - 821,958
Charges for services 4,525 - - - Fines and forfeitures - - - - Use of money and property 344,540 327 275,456 - Developer fees - - 330 - Donations 172 - - - Other - - - - Special assessments - - - - Total revenues 349,237 327 275,786 821,958 EXPENDITURES Current: General government - - - - Public safety - - - - Public works - - - - Library - - - - Planning & environmental review - - - - Neighborhood services 617,016 - - - Capital outlay - - 346,161 200,778 Debt service:
Interest - - - - Total expenditures 617,016 - 346,161 200,778 Excess of revenues over (under) expenditures (267,779) 327 (70,375) 621,180 OTHER FINANCING SOURCES (USES) Transfers in 413,042 - - 40,000 Transfers out - - (3,148,251) - Total other financing sources (uses) 413,042 - (3,148,251) 40,000 Net change in fund balances 145,263 327 (3,218,626) 661,180 Fund balances (deficit), beginning, as previously stated - 6,659 5,539,314 (2,424,723) Change within financial reporting entity (nonmajor to major) - - - - Fund balances (deficit), beginning, as restated - 6,659 5,539,314 (2,424,723) Fund balances (deficit), ending $ 145,263 $ 6,986 $ 2,320,688 $ (1,763,543) DRAFT 152
(Concluded)
-108-
Cal-Fire Grants Transportation Facilities DIF (formerly nonmajor) Quimby United State Department of Agriculture Total Nonmajor Governmental Funds $ - $ - $ - $ 2,906,730 - - - 1,481,779
661,437 - 1,794 13,796,833
- - - 22,593
- - - 1,644
- 153,860 - 1,648,529
- - - 1,104,892
- - - 26,790
- - - 25,001
- - - 365,436
661,437 153,860 1,794 21,380,227
- - - 49,252
- - - 256,612
719,517 - 1,794 8,376,233
- - - 2,382,968
- - - 62,485
- - - 696,735
- - - 9,370,336
- - - 99,735
719,517 - 1,794 21,294,356
(58,080) 153,860 - 85,871
- 3,148,251 - 3,851,293
- - - (3,157,541)
- 3,148,251 - 693,752
(58,080) 3,302,111 - 779,623
57,846 8,914,576 3,131,795 - 33,803,612
- (8,914,576) - - (8,910,711)
57,846 - 3,131,795 - 24,892,901
$ (234) $ - $ 6,433,906 $ - $ 25,672,524
Special Revenue Funds
DRAFT 153
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
-109-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 912,346 $ 906,237 $ 899,770 $ (6,467) Use of money and property 60,000 60,000 26,163 (33,837) Total revenues 972,346 966,237 925,933 (40,304)
EXPENDITURES
Current:
Public works 876,000 2,219,467 2,109,265 110,202
Capital outlay 40,000 40,000 84 39,916
Total expenditures 916,000 2,259,467 2,109,349 150,118
Net change in fund balance 56,346 (1,293,230) (1,183,416) 109,814 Fund balance, beginning 1,410,642 1,410,642 1,410,642 - Fund balance, ending $ 1,466,988 $ 117,412 $ 227,226 $ 109,814 Budgeted Amounts
DRAFT 154
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Transportation Special Revenue Fund
For the Year Ended June 30, 2025
-110-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 36,400 $ 36,400 $ 36,157 $ (243)
Use of money and property 8,000 8,000 12,318 4,318
Total revenues 44,400 44,400 48,475 4,075
EXPENDITURES
Capital outlay - 262,215 152,730 109,485
Total expenditures - 262,215 152,730 109,485
Net change in fund balance 44,400 (217,815) (104,255) 113,560 Fund balance, beginning 272,815 272,815 272,815 - Fund balance, ending $ 317,215 $ 55,000 $ 168,560 $ 113,560 Budgeted Amounts
DRAFT 155
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Road Maintenance and Rehabilitation Special Revenue Fund For the Year Ended June 30, 2025
-111-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 846,786 $ 824,666 $ 891,289 $ 66,623 Use of money and property 30,000 30,000 44,412 14,412
Total revenues 876,786 854,666 935,701 81,035
EXPENDITURES
Current:
Public works 808,000 1,801,327 1,417,724 383,603
Total expenditures 808,000 1,801,327 1,417,724 383,603
Net change in fund balance 68,786 (946,661) (482,023) 464,638 Fund balance, beginning 1,318,960 1,318,960 1,318,960 - Fund balance, ending $ 1,387,746 $ 372,299 $ 836,937 $ 464,638 Budgeted Amounts
DRAFT 156
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Measure A Special Revenue Fund
For the Year Ended June 30, 2025
-112-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Taxes $ 2,281,700 $ 2,281,700 $ 2,278,140 $ (3,560)
Use of money and property 230,000 230,000 290,485 60,485 Total revenues 2,511,700 2,511,700 2,568,625 56,925
EXPENDITURES
Current:
Public works 1,020,000 2,093,399 1,805,889 287,510
Capital outlay 1,012,000 5,110,306 1,279,013 3,831,293
Debt service:
Interest - 99,735 99,735 - Total expenditures 2,032,000 7,303,440 3,184,637 4,118,803 Net change in fund balance 479,700 (4,791,740) (616,012) 4,175,728 Fund balance, beginning 5,147,945 5,147,945 5,147,945 - Fund balance, ending $ 5,627,645 $ 356,205 $ 4,531,933 $ 4,175,728 Budgeted Amounts
DRAFT 157
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Measure A Grants Special Revenue Fund
For the Year Ended June 30, 2025
-113-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 2,426,108 $ 1,200,797 $ (1,225,311) Total revenues - 2,426,108 1,200,797 (1,225,311)
EXPENDITURES
Capital outlay - 1,185,033 71,129 1,113,904
Total expenditures - 1,185,033 71,129 1,113,904
Net change in fund balance - 1,241,075 1,129,668 (111,407) Fund balance (deficit), beginning (1,241,075) (1,241,075) (1,241,075) - Fund balance (deficit), ending $ (1,241,075) $ - $ (111,407) $ (111,407) Budgeted Amounts
DRAFT 158
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Solid Waste Program Special Revenue Fund
For the Year Ended June 30, 2025
-114-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Franchise fees $ 1,427,500 $ 1,427,500 $ 1,432,990 $ 5,490 Charges for services - - 10,736 10,736
Use of money and property 55,000 55,000 81,681 26,681
Other 25,000 25,000 25,000 - Total revenues 1,507,500 1,507,500 1,550,407 42,907
EXPENDITURES
Current:
General government 20,100 20,100 - 20,100
Public works 2,603,500 1,930,700 1,518,049 412,651
Capital outlay - 222,000 - 222,000
Total expenditures 2,623,600 2,172,800 1,518,049 654,751 Net change in fund balance (1,116,100) (665,300) 32,358 697,658 Fund balance, beginning 1,588,429 1,588,429 1,588,429 - Fund balance, ending $ 472,329 $ 923,129 $ 1,620,787 $ 697,658 Budgeted Amounts
DRAFT 159
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Public Safety Donations Special Revenue Fund
For the Year Ended June 30, 2025
-115-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Total revenues $ - $ - $ - $ - EXPENDITURES
Current:
Public safety - 11,748 11,748 - Total expenditures - 11,748 11,748 - Net change in fund balance - (11,748) (11,748) - Fund balance, beginning 11,748 11,748 11,748 - Fund balance, ending $ 11,748 $ - $ - $ - Budgeted Amounts
DRAFT 160
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
County Fire DIF Special Revenue Fund
For the Year Ended June 30, 2025
-116-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 849,514 $ - $ (849,514)
Total revenues - 849,514 - (849,514)
EXPENDITURES
Capital outlay - 550,097 - 550,097
Total expenditures - 550,097 - 550,097
Net change in fund balance - 299,417 - (299,417)
Fund balance (deficit), beginning (299,417) (299,417) (299,417) - Fund balance (deficit), ending $ (299,417) $ - $ (299,417) $ (299,417) Budgeted Amounts
DRAFT 161
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Library Facilities DIF Special Revenue Fund
For the Year Ended June 30, 2025
-117-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 8,885 $ 8,885
Developer fees 148,000 10,000 203,861 193,861
Total revenues 148,000 10,000 212,746 202,746
EXPENDITURES
Current:
Library 148,000 152,000 117,748 34,252
Capital outlay - 50,000 - 50,000
Total expenditures 148,000 202,000 117,748 84,252
Net change in fund balance - (192,000) 94,998 286,998
Fund balance, beginning 187,957 187,957 187,957 - Fund balance, ending $ 187,957 $ (4,043) $ 282,955 $ 286,998 Budgeted Amounts
DRAFT 162
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Sheriff Facilities DIF Special Revenue Fund
For the Year Ended June 30, 2025
-118-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 7,327 $ 7,327
Developer fees 28,200 - - - Total revenues 28,200 - 7,327 7,327
EXPENDITURES
Capital outlay - 168,002 - 168,002
Total expenditures - 168,002 - 168,002
Net change in fund balance 28,200 (168,002) 7,327 175,329 Fund balance, beginning 149,139 149,139 149,139 - Fund balance, ending $ 177,339 $ (18,863) $ 156,466 $ 175,329 Budgeted Amounts
DRAFT 163
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Housing In-Lieu Special Revenue Fund
For the Year Ended June 30, 2025
-119-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ 9,700 $ 9,700 $ 72,381 $ 62,681 Total revenues 9,700 9,700 72,381 62,681
EXPENDITURES
Current:
Planning & environmental review 25,000 25,000 25,000 - Total expenditures 25,000 25,000 25,000 - Excess of revenues over (under) expenditures (15,300) (15,300) 47,381 62,681 OTHER FINANCING SOURCES (USES):
Transfers in 250,000 250,000 250,000 - Total other financing sources (uses) 250,000 250,000 250,000 - Net change in fund balance 234,700 234,700 297,381 62,681 Fund balance, beginning 1,485,378 1,485,378 1,485,378 - Fund balance, ending $ 1,720,078 $ 1,720,078 $ 1,782,759 $ 62,681 Budgeted Amounts
DRAFT 164
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Storm Drain DIF Special Revenue Fund
For the Year Ended June 30, 2025
-120-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ 4,000 $ 4,000 $ 29,366 $ 25,366 Developer fees 180,000 130,100 108 (129,992)
Total revenues 184,000 134,100 29,474 (104,626)
EXPENDITURES
Current:
Public works - 54,000 38,819 15,181
Capital outlay - 743,920 35,318 708,602
Total expenditures - 797,920 74,137 723,783
Net change in fund balance 184,000 (663,820) (44,663) 619,157 Fund balance, beginning 609,443 609,443 609,443 - Fund balance, ending $ 793,443 $ (54,377) $ 564,780 $ 619,157 Budgeted Amounts
DRAFT 165
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Environmental Programs Special Revenue Fund
For the Year Ended June 30, 2025
-121-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ 1,300 $ 1,300 $ 9,000 $ 7,700 Donations - - 575 575
Total revenues 1,300 1,300 9,575 8,275
EXPENDITURES
Current:
Public works 9,400 9,400 - 9,400
Total expenditures 9,400 9,400 - 9,400
Net change in fund balance (8,100) (8,100) 9,575 17,675 Fund balance, beginning 183,028 183,028 183,028 - Fund balance, ending $ 174,928 $ 174,928 $ 192,603 $ 17,675 Budgeted Amounts
DRAFT 166
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Fire Facilities DIF Special Revenue Fund
For the Year Ended June 30, 2025
-122-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ 26,200 $ 26,200 $ 184,898 $ 158,698 Developer fees 318,700 51,700 246,047 194,347
Total revenues 344,900 77,900 430,945 353,045
EXPENDITURES
Current:
Public works - 54,000 54,000 - Capital outlay 4,201,368 - 13,358 4,188,010 Total expenditures 4,255,368 - 67,358 4,188,010
Net change in fund balance 344,900 (4,177,468) 363,587 4,541,055 Fund balance, beginning 3,753,891 3,753,891 3,753,891 - Fund balance, ending $ 4,098,791 $ (423,577) $ 4,117,478 $ 4,541,055 Budgeted Amounts
DRAFT 167
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Long Range Development Plan Special Revenue Fund
For the Year Ended June 30, 2025
-123-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 3,889,883 - $ $ (3,889,883) - $
Total revenues 3,889,883 - (3,889,883) - EXPENDITURES
Capital outlay 2,300,000 8,398,315 2,151,029 6,247,286
Total expenditures 2,300,000 8,398,315 2,151,029 6,247,286 Net change in fund balance (2,300,000) (4,508,432) (2,151,029) 2,357,403 Fund balance, beginning 2,208,431 2,208,431 2,208,431 - Fund balance, ending $ (91,569) $ (2,300,001) $ 57,402 $ 2,357,403 Budgeted Amounts
DRAFT 168
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Public Safety Special Revenue Fund
For the Year Ended June 30, 2025
-124-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 150,000 $ 194,663 $ 194,663 $ - Total revenues 150,000 194,663 194,663 - EXPENDITURES Current:
Public safety 150,000 194,663 194,663 - Total expenditures 150,000 194,663 194,663 - Net change in fund balance - - - - Fund balance, beginning - - - - Fund balance, ending $ - $ - $ - $ - Budgeted Amounts
DRAFT 169
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Monarch Butterfly Habitat Management Plan Special Revenue Fund For the Year Ended June 30, 2025
-125-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 2,328,616 - $ $ 2,328,616 $ - Total revenues 2,328,616 - 2,328,616 - EXPENDITURES Capital outlay 2,117,771 - 2,117,771 - Total expenditures 2,117,771 - 2,117,771 - Net change in fund balance - 210,845 210,845 - Fund balance (deficit), beginning (210,845) (210,845) (210,845) - Fund balance (deficit), ending $ (210,845) $ - $ - $ - Budgeted Amounts
DRAFT 170
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Solid Waste Recycling Special Revenue Fund
For the Year Ended June 30, 2025
-126-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 8,447 $ 8,447 $ - Total revenues - 8,447 8,447 - EXPENDITURES Current:
Public works - 104,806 9,758 95,048
Total expenditures - 104,806 9,758 95,048
Net change in fund balance - (96,359) (1,311) 95,048
Fund balance, beginning 135,692 135,692 135,692 - Fund balance, ending $ 135,692 $ 39,333 $ 134,381 $ 95,048 Budgeted Amounts
DRAFT 171
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
RSTP Special Revenue Fund
For the Year Ended June 30, 2025
-127-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 565,315 $ - $ (565,315)
Total revenues - 565,315 - (565,315)
EXPENDITURES
Capital outlay - 10,150 - 10,150
Total expenditures - 10,150 - 10,150
Net change in fund balance - 555,165 - (555,165)
Fund balance (deficit), beginning (420,350) (420,350) (420,350) - Fund balance (deficit), ending $ (420,350) $ 134,815 $ (420,350) $ (555,165) Budgeted Amounts
DRAFT 172
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Comstock Plover Endowment Special Revenue Fund
For the Year Ended June 30, 2025
-128-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ 4,000 $ 7,000 $ 7,172 $ 172 Total revenues 4,000 7,000 7,172 172
EXPENDITURES
Current:
Planning & environmental review 2,000 14,758 14,930 (172) Total expenditures 2,000 14,758 14,930 (172)
Net change in fund balance 2,000 (7,758) (7,758) - Fund balance, beginning 7,758 7,758 7,758 - Fund balance, ending $ 9,758 $ - $ - $ - Budgeted Amounts
DRAFT 173
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Miscellaneous Grants Special Revenue Fund
For the Year Ended June 30, 2025
-129-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 30,000 $ 326,341 $ 83,333 $ (243,008) Total revenues 30,000 326,341 83,333 (243,008)
EXPENDITURES
Current:
Public works 30,000 27,445 516 26,929
Planning & environmental review - 22,555 22,555 - Neighborhood services - 7,500 7,500 - Capital outlay - 206,318 120,807 85,511 Total expenditures 30,000 263,818 151,378 112,440
Net change in fund balance - 62,523 (68,045) (130,568)
Fund balance (deficit), beginning (62,493) (62,493) (62,493) - Fund balance (deficit), ending $ (62,493) $ 30 $ (130,538) $ (130,568) Budgeted Amounts
DRAFT 174
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Developer Agreement Special Revenue Fund
For the Year Ended June 30, 2025
-130-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 1,554,760 - $ $ 1,554,760 $ - Total revenues 1,554,760 - 1,554,760 - EXPENDITURES Capital outlay 1,824,760 - 644,904 1,179,856
Total expenditures 1,824,760 - 644,904 1,179,856
Net change in fund balance - (270,000) 909,856 1,179,856 Fund balance, beginning 615,163 615,163 615,163 - Fund balance, ending $ 615,163 $ 345,163 $ 1,525,019 $ 1,179,856 Budgeted Amounts
DRAFT 175
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Bicycle and Pedestrian DIF Special Revenue Fund
For the Year Ended June 30, 2025
-131-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 13,619 $ 13,619
Developer fees 72,700 32,000 93 (31,907)
Total revenues 72,700 32,000 13,712 (18,288)
EXPENDITURES
Current:
Public works - 54,000 - 54,000
Capital outlay 85,000 357,204 - 357,204
Total expenditures 85,000 411,204 - 411,204
Net change in fund balance (12,300) (379,204) 13,712 392,916 Fund balance, beginning 277,205 277,205 277,205 - Fund balance, ending $ 264,905 $ (101,999) $ 290,917 $ 392,916 Budgeted Amounts
DRAFT 176
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
California Library Grants Special Revenue Fund
For the Year Ended June 30, 2025
-132-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 4,264,460 - $ $ 379,086 $ (3,885,374) Total revenues 4,264,460 - 379,086 (3,885,374)
EXPENDITURES
Capital outlay 4,264,460 - 379,086 3,885,374
Total expenditures 4,264,460 - 379,086 3,885,374
Net change in fund balance - - - - Fund balance, beginning - - - - Fund balance, ending $ - $ - $ - $ - Budgeted Amounts
DRAFT 177
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
CDBG Special Revenue Fund
For the Year Ended June 30, 2025
-133-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 292,918 $ 561,971 $ 125,020 $ (436,951) Total revenues 292,918 561,971 125,020 (436,951)
EXPENDITURES
Current:
Neighborhood services 48,421 78,438 72,219 6,219
Capital outlay 190,397 459,450 40,001 419,449
Total expenditures 238,818 537,888 112,220 425,668
Excess of revenues over (under) expenditures 54,100 24,083 12,800 (11,283) OTHER FINANCING SOURCES (USES):
Transfers out (54,100) (24,083) (9,290) 14,793
Total other financing sources (uses) (54,100) (24,083) (9,290) 14,793 Net change in fund balance - - 3,510 3,510
Fund balance, beginning - - - - Fund balance, ending $ - $ - $ 3,510 $ 3,510 Budgeted Amounts
DRAFT 178
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
HSIP Special Revenue Fund
For the Year Ended June 30, 2025
-134-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 3,120,100 - $ $ 371,244 $ (2,748,856) Total revenues 3,120,100 - 371,244 (2,748,856)
EXPENDITURES
Capital outlay 2,759,485 - 19,985 2,739,500
Total expenditures 2,759,485 - 19,985 2,739,500
Net change in fund balance - 360,615 351,259 (9,356)
Fund balance (deficit), beginning (354,979) (354,979) (354,979) - Fund balance (deficit), ending $ (354,979) $ 5,636 $ (3,720) $ (9,356) Budgeted Amounts
DRAFT 179
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Street Lighting Special Revenue Fund
For the Year Ended June 30, 2025
-135-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 17,052 $ 17,052
Special assessments 308,000 308,000 311,646 3,646
Total revenues 308,000 308,000 328,698 20,698
EXPENDITURES
Current:
Public works 500,500 500,500 308,931 191,569
Total expenditures 500,500 500,500 308,931 191,569
Net change in fund balance (192,500) (192,500) 19,767 212,267 Fund balance, beginning 323,663 323,663 323,663 - Fund balance, ending $ 131,163 $ 131,163 $ 343,430 $ 212,267 Budgeted Amounts
DRAFT 180
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
PEG Special Revenue Fund
For the Year Ended June 30, 2025
-136-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Franchise fees $ 60,000 $ 60,000 $ 48,789 $ (11,211)
Use of money and property 8,500 8,500 13,179 4,679
Total revenues 68,500 68,500 61,968 (6,532)
EXPENDITURES
Current:
Public works 60,000 60,000 28,971 31,029
Total expenditures 60,000 60,000 28,971 31,029
Net change in fund balance 8,500 8,500 32,997 24,497
Fund balance, beginning 267,375 267,375 267,375 - Fund balance, ending $ 275,875 $ 275,875 $ 300,372 $ 24,497 Budgeted Amounts
DRAFT 181
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
LSTP Special Revenue Fund
For the Year Ended June 30, 2025
-137-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 733,109 $ 734,544 $ 1,435
Total revenues - 733,109 734,544 1,435
EXPENDITURES
Current:
Public works - 491,496 339,209 152,287
Total expenditures - 491,496 339,209 152,287
Net change in fund balance - 241,613 395,335 153,722
Fund balance (deficit), beginning (241,169) (241,169) (241,169) - Fund balance, ending $ (241,169) $ 444 $ 154,166 $ 153,722 Budgeted Amounts
DRAFT 182
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Housing and Community Development Special Revenue Fund
For the Year Ended June 30, 2025
-138-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 729,866 $ 729,866 $ - Total revenues - 729,866 729,866 - EXPENDITURES Capital outlay - 729,866 729,866 - Total expenditures - 729,866 729,866 - Net change in fund balance - - - - Fund balance, beginning - - - - Fund balance, ending $ - $ - $ - $ - Budgeted Amounts
DRAFT 183
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
FHWA-FEMA Reimbursement Special Revenue Fund
For the Year Ended June 30, 2025
-139-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 87,746 $ - $ (87,746)
Total revenues - 87,746 - (87,746)
EXPENDITURES
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
DRAFT 184
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
OTS Public Safety Special Revenue Fund
For the Year Ended June 30, 2025
-140-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 88,187 $ 81,846 $ (6,341)
Total revenues - 88,187 81,846 (6,341)
EXPENDITURES
Current:
Public safety - 51,396 50,201 1,195
Public works - 23,237 18,091 5,146
Total expenditures - 74,633 68,292 6,341
Net change in fund balance - 13,554 13,554 - Fund balance (deficit), beginning (13,554) (13,554) (13,554) - Fund balance, ending $ (13,554) $ - $ - $ - Budgeted Amounts
DRAFT 185
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Certified Access Specialist Special Revenue Fund
For the Year Ended June 30, 2025
-141-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 2,623 $ 2,623
Special assessments - 55,000 53,790 (1,210)
Total revenues - 55,000 56,413 1,413
EXPENDITURES
Current:
Library - 1,000 311 689
Total expenditures - 1,000 311 689
Net change in fund balance - 54,000 56,102 2,102
Fund balance, beginning 2,950 2,950 2,950 - Fund balance, ending $ 2,950 $ 56,950 $ 59,052 $ 2,102 Budgeted Amounts
DRAFT 186
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
HMGP Special Revenue Fund
For the Year Ended June 30, 2025
-142-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 621,698 $ 59,608 $ (562,090)
Total revenues - 621,698 59,608 (562,090)
EXPENDITURES
Capital outlay - 550,016 - 550,016
Total expenditures - 550,016 - 550,016
Net change in fund balance - 71,682 59,608 (12,074)
Fund balance (deficit), beginning (71,682) (71,682) (71,682) - Fund balance (deficit), ending $ (71,682) $ - $ (12,074) $ (12,074) Budgeted Amounts
DRAFT 187
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Library Services Special Revenue Fund
For the Year Ended June 30, 2025
-143-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Taxes $ 626,400 $ 626,400 $ 628,590 $ 2,190
Use of money and property 2,000 2,000 17,094 15,094
Total revenues 628,400 628,400 645,684 17,284
EXPENDITURES
Current:
Library 686,180 686,180 685,512 668
Capital outlay - 180,000 - 180,000
Total expenditures 686,180 866,180 685,512 180,668
Excess of revenues over (under) expenditures (57,780) (237,780) (39,828) 197,952 OTHER FINANCING SOURCES (USES):
Transfers out (50,000) (50,000) - 50,000
Total other financing sources (uses) (50,000) (50,000) - 50,000 Net change in fund balance (107,780) (287,780) (39,828) 247,952 Fund balance, beginning 591,308 591,308 591,308 - Fund balance, ending $ 483,528 $ 303,528 $ 551,480 $ 247,952 Budgeted Amounts
DRAFT 188
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
County Per Capita - Goleta Library Special Revenue Fund For the Year Ended June 30, 2025
-144-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 788,500 $ 829,862 $ 829,862 $ - Use of money and property 9,500 9,500 9,724 224 Total revenues 798,000 839,362 839,586 224
EXPENDITURES
Current:
Library 938,920 963,920 770,134 193,786
Capital outlay - 180,000 - 180,000
Total expenditures 938,920 1,143,920 770,134 373,786
Excess of revenues over (under) expenditures (140,920) (304,558) 69,452 374,010 OTHER FINANCING SOURCES (USES):
Transfers in 100,000 100,000 - (100,000)
Total other financing sources (uses) 100,000 100,000 - (100,000) Net change in fund balance (40,920) (204,558) 69,452 274,010 Fund balance, beginning 345,437 345,437 345,437 - Fund balance, ending $ 304,517 $ 140,879 $ 414,889 $ 274,010 Budgeted Amounts
DRAFT 189
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Buellton Library Special Revenue Fund
For the Year Ended June 30, 2025
-145-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 193,729 $ 193,729 $ 193,729 $ - Charges for services 900 900 432 (468) Fine and forfeitures 750 750 294 (456)
Use of money and property - - 3,983 3,983
Donations 100 100 260 160
Total revenues 195,479 195,479 198,698 3,219
EXPENDITURES
Current:
Library 279,500 223,021 193,343 29,678
Total expenditures 279,500 223,021 193,343 29,678
Net change in fund balance (84,021) (27,542) 5,355 32,897 Fund balance, beginning 27,543 27,543 27,543 - Fund balance, ending $ (56,478) $ 1 $ 32,898 $ 32,897 Budgeted Amounts
DRAFT 190
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
County Per Capita - Buellton Library Special Revenue Fund For the Year Ended June 30, 2025
-146-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 162,659 $ 165,212 $ 165,212 $ - Use of money and property - - 9,775 9,775 Total revenues 162,659 165,212 174,987 9,775
EXPENDITURES
Current:
General government - 56,479 49,252 7,227
Library 176,400 176,400 147,369 29,031
Total expenditures 176,400 232,879 196,621 36,258
Net change in fund balance (13,741) (67,667) (21,634) 46,033 Fund balance, beginning 250,656 250,656 250,656 - Fund balance, ending $ 236,915 $ 182,989 $ 229,022 $ 46,033 Budgeted Amounts
DRAFT 191
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Solvang Library Special Revenue Fund
For the Year Ended June 30, 2025
-147-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 184,855 $ 184,855 $ 184,855 $ - Charges for services 1,700 1,700 6,900 5,200 Fine and forfeitures 1,000 1,000 1,350 350
Use of money and property - - 4,197 4,197
Donations 10,000 35,000 25,783 (9,217)
Other - - 1 1
Total revenues 197,555 222,555 223,086 531
EXPENDITURES
Current:
Library 268,700 242,833 242,833 - Total expenditures 268,700 242,833 242,833 - Net change in fund balance (71,145) (20,278) (19,747) 531 Fund balance, beginning 20,278 20,278 20,278 - Fund balance, ending $ (50,867) $ - $ 531 $ 531 Budgeted Amounts
DRAFT 192
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
County Per Capita Solvang Library Special Revenue Fund
For the Year Ended June 30, 2025
-148-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 185,872 $ 189,586 $ 189,586 $ - Use of money and property - - 4,273 4,273 Total revenues 185,872 189,586 193,859 4,273
EXPENDITURES
Current:
Library 212,100 244,467 207,732 36,735
Total expenditures 212,100 244,467 207,732 36,735
Net change in fund balance (26,228) (54,881) (13,873) 41,008 Fund balance, beginning 157,274 157,274 157,274 - Fund balance, ending $ 131,046 $ 102,393 $ 143,401 $ 41,008 Budgeted Amounts
DRAFT 193
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Miscellaneous Grants Library Special Revenue Fund
For the Year Ended June 30, 2025
-149-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ - $ 17,994 $ 17,994 $ - Total revenues - 17,994 17,994 - EXPENDITURES Current:
Library - 46,453 17,986 28,467
Total expenditures - 46,453 17,986 28,467
Net change in fund balance - (28,459) 8 28,467
Fund balance, beginning 28,459 28,459 28,459 - Fund balance, ending $ 28,459 $ - $ 28,467 $ 28,467 Budgeted Amounts
DRAFT 194
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Public Administration Facilities DIF Special Revenue Fund For the Year Ended June 30, 2025
-150-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 4,739 $ 4,739
Developer fees 395,900 32,000 654,453 622,453
Total revenues 395,900 32,000 659,192 627,192
EXPENDITURES
Current:
Public works - 54,000 5,700 48,300
Capital outlay 722,000 781,309 16,956 764,353
Total expenditures 722,000 835,309 22,656 812,653
Net change in fund balance (326,100) (803,309) 636,536 1,439,845 Fund balance, beginning 46,669 46,669 46,669 - Fund balance, ending $ (279,431) $ (756,640) $ 683,205 $ 1,439,845 Budgeted Amounts
DRAFT 195
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Community Center Special Revenue Fund
For the Year Ended June 30, 2025
-151-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Charges for services $ - $ - $ 4,525 $ 4,525
Use of money and property 323,000 323,000 344,540 21,540 Donations - - 172 172
Total revenues 323,000 323,000 349,237 26,237
EXPENDITURES
Current:
Neighborhood services 878,600 878,600 617,016 261,584
Capital outlay - 50,000 - 50,000
Total expenditures 878,600 928,600 617,016 311,584
Excess of revenues over (under) expenditures (555,600) (605,600) (267,779) 337,821 OTHER FINANCING SOURCES (USES):
Transfers in 508,200 508,200 413,042 (95,158)
Total other financing sources (uses) 508,200 508,200 413,042 (95,158) Net change in fund balance (47,400) (97,400) 145,263 242,663 Fund balance, beginning - - - - Fund balance, ending $ (47,400) $ (97,400) $ 145,263 $ 242,663 Budgeted Amounts
DRAFT 196
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Affordable Housing DIF Special Revenue Fund
For the Year Ended June 30, 2025
-152-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 327 $ 327
Developer fees 332,900 357,000 - (357,000)
Total revenues 332,900 357,000 327 (356,673)
EXPENDITURES
Current:
Public works - 54,000 - 54,000
Total expenditures - 54,000 - 54,000
Net change in fund balance 332,900 303,000 327 (302,673) Fund balance, beginning 6,659 6,659 6,659 - Fund balance, ending $ 339,559 $ 309,659 $ 6,986 $ (302,673) Budgeted Amounts
DRAFT 197
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Park DIF Special Revenue Fund
For the Year Ended June 30, 2025
-153-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ 65,000 $ 65,000 $ 275,456 $ 210,456 Developer fees 2,052,000 123,143 330 (122,813)
Total revenues 2,117,000 188,143 275,786 87,643
EXPENDITURES
Public works - 54,000 - 54,000
Capital outlay 4,287,796 - 346,161 3,941,635
Total expenditures 4,341,796 - 346,161 3,995,635
Excess of revenues over (under) expenditures 2,117,000 (4,153,653) (70,375) 4,083,278 OTHER FINANCING SOURCES (USES):
Transfers out (3,148,251) - (3,148,251) - Total other financing sources (uses) (3,148,251) - (3,148,251) - Net change in fund balance 2,117,000 (7,301,904) (3,218,626) 4,083,278 Fund balance, beginning 5,539,314 5,539,314 5,539,314 - Fund balance, ending $ 7,656,314 $ (1,762,590) $ 2,320,688 $ 4,083,278 Budgeted Amounts
DRAFT 198
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Active Transportation Program Special Revenue Fund
For the Year Ended June 30, 2025
-154-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 2,669,000 - $ $ 821,958 $ (1,847,042) Total revenues 2,669,000 - 821,958 (1,847,042)
EXPENDITURES
Capital outlay - 284,277 200,778 83,499
Total expenditures - 284,277 200,778 83,499
Excess of revenues over (under) expenditures 2,384,723 - 621,180 (1,763,543) OTHER FINANCING SOURCES (USES):
Transfers out - 40,000 40,000 - Total other financing sources (uses) - 40,000 40,000 - Net change in fund balance 2,424,723 - 661,180 (1,763,543) Fund balance (deficit), beginning (2,424,723) (2,424,723) (2,424,723) - Fund balance (deficit), ending $ (2,424,723) $ (1,763,543) - $ $ (1,763,543) Budgeted Amounts
DRAFT 199
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Cal-Fire Grants Special Revenue Fund
For the Year Ended June 30, 2025
-155-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 1,421,887 - $ $ 661,437 $ (760,450) Total revenues 1,421,887 - 661,437 (760,450)
EXPENDITURES
Current:
Public works 1,479,733 - 719,517 760,216
Total expenditures 1,479,733 - 719,517 760,216
Net change in fund balance - (57,846) (58,080) (234)
Fund balance, beginning 57,846 57,846 57,846 - Fund balance (deficit), ending $ 57,846 $ - $ (234) $ (234) Budgeted Amounts
DRAFT 200
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Quimby Special Revenue Fund
For the Year Ended June 30, 2025
-156-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Use of money and property $ - $ - $ 153,860 $ 153,860
Developer fees 1,751,000 - (1,751,000) - Total revenues 1,751,000 - 153,860 (1,597,140) Excess of revenues over (under) expenditures 1,751,000 - 153,860 (1,597,140) OTHER FINANCING SOURCES (USES):
Transfers in 3,148,251 - 3,148,251 - Total other financing sources (uses) 3,148,251 - 3,148,251 - Net change in fund balance 4,899,251 - 3,302,111 (1,597,140) Fund balance, beginning 3,131,795 3,131,795 3,131,795 - Fund balance, ending $ 3,131,795 $ 8,031,046 $ 6,433,906 $ (1,597,140) Budgeted Amounts
DRAFT 201
City of Goleta
Nonmajor Governmental Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
United States Department of Agriculture Special Revenue Fund For the Year Ended June 30, 2025
-157-
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental $ 1,000,000 - $ 1,794 $ (998,206)
Total revenues 1,000,000 - 1,794 (998,206)
EXPENDITURES
Current:
Public works 1,000,000 - 1,794 998,206
Total expenditures 1,000,000 - 1,794 998,206
Net change in fund balance - - - - Fund balance, beginning - - - - Fund balance, ending $ - $ - $ - $ - Budgeted Amounts
DRAFT 202
STATISTICAL SECTION
DRAFT 203
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 204
City of Goleta
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
-158-
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.
159-165
Revenue Capacity
These schedules contain information to help assess the City's most significant local revenue source, the property tax and transit occupancy tax. 166-172
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.
173-176
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.
177-178
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 City provides and the activities it performs. 179-182
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
DRAFT 205
THIS PAGE LEFT INTENTIONALLY BLANK
DRAFT 206
City of Goleta
Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) -159-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental activities: Net investment in capital assets $ 181,519,215 $ 180,871,756 $ 189,886,349 $ 191,612,268 $ 202,170,314 $ 196,120,737 $ 215,354,867 $ 199,419,212 $ 217,892,824 $ 255,043,621 Restricted 28,429,446 36,891,364 34,623,415 34,490,037 35,223,059 40,085,550 39,874,157 35,667,016 38,412,267 29,100,401 Unrestricted 15,465,702 19,440,126 6,765,954 13,891,718 6,697,065 21,525,728 14,028,509 30,728,544 34,145,370 42,002,713 Total governmental activities net position $ 225,414,363 $ 237,203,246 $ 231,275,718 $ 239,994,023 $ 244,090,438 $ 257,732,015 $ 269,257,533 $ 263,001,325 $ 290,450,461 $ 326,146,735 Fiscal Year Ended June 30,
Source: City of Goleta, Finance Department
DRAFT
207
City of Goleta
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
-160-
Primary Government - Governmental Activities 2017 2018 2019 2020 Expenses:
General government $ 5,910,221 $ 6,755,208 $ 12,562,598 $ 6,819,954 Public safety 7,611,834 7,741,361 8,582,868 8,046,890
Public works 9,350,254 10,965,391 18,234,912 12,815,994 Community development 44,509 49,858 425,086 756,848
Community services 4,363,053 6,359,917 5,273,153 6,148,076 Library - - - -
Planning & Environmental Review - - - -
Neighborhood Services - - - -
Interest and other charges - - - -
Total expenses 27,279,871 31,871,735 45,078,617 34,587,762 Program revenues:
Charges for services:
General government 32,874 18,929 464 18,431
Public safety 156,125 129,051 125,000 -
Public works 1,258,930 1,338,942 737,673 718,392
Community development 2,156,101 2,234,166 1,268,821 1,023,206 Community services 17,799 18,419 - 5,433
Library - - - -
Planning & Environmental Review - - - -
Neighborhood Services - - - -
Operating grants and contributions:
General government - - - 15,336
Public safety 114,671 424,256 191,248 150,690
Public works 2,117,379 3,289,699 937,123 640,432
Community development - - - -
Community services - - - 1,037,379
Library - - - -
Planning & Environmental Review - - - -
Neighborhood Services - - - -
Capital grants and contributions:
Public safety 243,648 71,579 688,348 524,047
Public works 10,947,335 13,029,843 6,045,265 4,184,252
Community development 373,338 21,517 634,694 1,057,706
Community services 156,033 59,491 130,502 995,705
Library - - - -
Planning & Environmental Review - - - -
Neighborhood Services - - - -
Total program revenues 17,574,233 20,635,892 10,759,138 10,371,009 Net revenues (expenses) (9,705,638) (11,235,843) (34,319,479) (24,216,753) General revenues and other changes
in net position:
Taxes:
Property taxes, levied for general purpose 5,719,552 6,051,805 6,504,431 6,954,616 Sales and use taxes 6,216,442 6,491,121 7,976,472 8,629,829 Transient lodging tax 8,175,456 8,615,207 10,117,460 11,564,512 Franchise taxes 1,241,017 1,202,162 1,325,238 1,409,104 Other taxes 292,277 246,876 1,253,424 1,716,932
Use of money and property 126,310 148,899 747,399 1,264,583 Other general revenues 433,820 781,108 851,175 610,827
Transfer in from City of Santa Barbara - - - 341,749
Total general revenues 22,204,874 23,537,178 28,775,599 32,492,152 Changes in net position $ 12,499,236 $ 12,301,335 $ (5,543,880) $ 8,275,399 Fiscal Year Ended June 30,
Source: City of Goleta, Finance Department.
DRAFT 208
-161-
2021 2022 2023 2023 2024 2025
$ 6,574,206 $ 6,552,687 $ 7,637,311 $ 10,376,662 $ 10,655,510 $ 12,341,129 7,646,327 7,262,255 8,695,216 9,349,732 10,975,712 11,763,039 12,253,012 12,255,501 16,520,360 22,540,161 18,786,893 27,189,941 486,631 463,691 1,014,887 - - -
7,854,597 8,394,651 7,051,170 - - -
- - - 2,588,836 2,610,354 3,195,776
- - - 4,056,009 4,628,681 4,838,240
- - - 2,650,927 2,832,847 3,391,633
- 227,333 258,610 281,218 275,752 1,126,943
34,814,773 35,156,118 41,177,554 51,843,545 50,765,749 63,846,701 73,238 75,473 98,700 111,780 104,992 172,528
- - - - - -
925,703 959,250 1,467,664 1,118,930 980,970 879,745
1,239,522 1,020,686 1,103,385 - - -
7,121 1,250 6,704 - - -
- - - 25,846 34,243 21,325
- - - 1,124,373 1,711,307 2,446,705
- - - 107,070 84,161 52,625
60,538 44,375 3,020,465 1,536,995 8,759,234 13,004,164
- 6,348 - - - -
743,838 927,972 762,120 765,187 3,124,298 853,519
50,543 273,575 - - - -
1,883,517 1,555,802 1,581,633 - - -
- - - 1,577,883 1,894,322 1,670,357
- - - 1,183,612 1,514,638 6,111,359
- - - 100,097 173,753 111,050
264,511 489,217 714,138 297,603 356,997 740,127
2,412,918 10,437,978 4,352,804 4,152,611 10,120,955 17,906,907 486,569 161,376 298,779 - - -
40,028 346,613 15,869 - - -
- - - 177 13,208 203,861
- - - - - -
- - - 209,949 456,696 125,020
8,188,046 16,299,915 13,422,261 12,312,113 29,329,774 44,299,292 (26,626,727) (18,856,203) (27,755,293) (39,531,432) (21,435,975) (19,547,409) 7,323,010 7,578,502 8,299,838 8,878,497 9,491,929 9,930,390 8,359,879 9,391,156 10,733,246 10,992,006 15,972,669 23,581,549 9,197,440 9,239,079 14,341,129 13,884,890 14,234,251 14,110,059 1,431,693 1,478,848 1,577,968 1,693,236 1,730,737 1,681,254 1,892,658 4,054,191 3,437,524 1,460,097 953,844 934,589 1,531,668 310,821 (314,219) 1,229,802 2,894,764 3,424,614 986,794 445,183 1,205,325 763,590 793,470 1,581,228
- - - - - -
30,723,142 32,497,780 39,280,811 38,902,118 46,071,664 55,243,683 $ 4,096,415 $ 13,641,577 $ 11,525,518 $ (629,314) $ 24,635,689 $ 35,696,274 Fiscal Year Ended June 30,
DRAFT 209
City of Goleta
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-162-
2016 2017 2018 2019
General fund:
Nonspendable $ 82,990 $ 135,766 $ 50,197 $ 126,660
Committed 12,410,719 14,007,924 10,717,463 10,468,732
Assigned 3,985,059 6,356,024 4,448,640 5,351,819
Unassigned 1,326,160 938,971 4,286,175 8,144,887
Total general fund $ 17,804,928 $ 21,438,685 $ 19,502,475 $ 24,092,098 All other governmental funds:
Nonspendable $ 100,074 $ 112,700 $ 13,045 $ 30,055
Restricted 28,329,372 36,792,174 34,623,070 33,573,116
Assigned - - - -
Unassigned (729,923) (1,084,155) (3,582,604) (1,078,759) Total all other governmental funds 27,699,523 $ $ 35,820,719 $ 31,053,511 $ 32,524,412 Fiscal Year Ended June 30,
Source: City of Goleta, Finance Department
DRAFT 210
-163-
2020 2021 2022 2023 2024 2025
$ 74,711 $ 25,674 $ 26,176 $ 15,049 $ 92,635 $ 109,384
11,087,037 12,617,011 12,753,580 14,180,140 17,472,816 17,480,275 3,269,986 2,517,302 7,006,229 14,063,142 20,366,170 26,124,383 2,846,216 17,632,671 19,482,955 11,110,926 6,862,571 9,467,780 $ 17,277,950 $ 32,792,658 $ 39,268,940 $ 39,369,257 $ 44,794,192 $ 53,181,822 $ 908 $ - $ 1,545 $ 3,000 $ 80 $ -
35,222,459 40,085,550 39,873,176 37,178,898 39,148,208 28,413,807 - - - - - -
(2,397,034) (2,531,901) (2,621,092) (4,202,542) (6,143,735) (4,354,915) $ 32,826,333 $ 37,553,649 $ 37,253,629 $ 32,979,356 $ 33,004,553 $ 24,058,892 Fiscal Year Ended June 30,
DRAFT 211
City of Goleta
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-164-
2016 2017 2018 2019
Revenues:
Taxes $ 23,649,455 $ 24,631,621 $ 26,900,090 $ 29,929,836 Franchise Fees - - - -
Intergovernmental 1,923,771 2,358,692 3,175,254 6,221,465 Charges for services 2,864,921 2,963,297 2,131,958 1,765,462 Licenses and permits 2,436 16,713 276,935 345,157
Fines and forfeitures 156,125 129,051 157,573 211,003
Use of money and property 346,146 414,124 747,399 1,264,583 Developer fees 10,426,271 11,877,652 6,269,163 2,230,638 Donations - - - 272,945
Other 433,922 781,110 693,602 399,824
Special Assessments - - - -
Total revenues 39,803,047 43,172,260 40,351,974 42,640,913 Expenditures
Current:
General government 6,434,016 6,703,041 6,172,071 7,841,267 Public safety 7,564,633 7,713,313 8,545,945 8,031,031
Public works 4,433,051 5,778,897 12,361,238 7,187,008
Community development 26,703 32,271 405,516 747,001
Community services 4,558,781 6,482,998 4,846,289 5,865,827 Library - - - -
Planning & Environmental Review - - - -
Neighborhood Services - - - -
Pass-through to other agencies - - - -
Capital outlay 2,896,848 4,706,787 14,639,100 7,250,004 Debt service:
Principal - - -
Interest - - -
Cost of issuance - - -
Total expenditures 37,440,713 25,914,032 31,417,307 46,970,159 Excess (deficiency) of revenues
over (under) expenditures 4,308,950 13,889,015 11,754,953 (6,618,185) Other financing sources (uses):
Lease Proceeds - - - -
Transfer from City of Santa Barbara - - - 341,749
Transfers in 1,323,699 67,038 19,919 23,182
Transfers out (1,323,699) (67,038) (19,919) (23,182)
Subscriptions/Lease Acquisition - - - -
Proceeds from issuance of debt - - - -
Premiums from issuance of debt - - - -
Total other financing sources (uses) - - - 341,749
Net change in fund balances,
before extraordinary item 4,308,950 13,889,015 11,754,953 (6,618,185) Net change in fund balances $ 4,308,950 $ 13,889,015 $ 11,754,953 $ (6,618,185) Debt service as a percentage of
noncapital expenditures 0.00% 0.00% 0.00% 0.00%
Fiscal Year Ended June 30,
Source: City of Goleta Finance Department
DRAFT 212
-165-
2020 2021 2022 2023 2024 2025
$ 27,863,962 $ 31,247,854 $ 37,873,993 $ 35,774,267 $ 41,256,269 $ 49,185,177 - - - 2,986,699 3,091,078 3,114,243
4,433,794 7,585,636 6,362,724 7,196,296 18,956,991 33,998,256 2,245,584 2,056,659 2,676,453 1,850,433 2,359,402 2,569,385 340,718 374,896 515,712 549,197 525,476 322,539
170,392 119,026 169,201 170,961 160,567 237,150
1,531,668 310,821 (314,219) 1,922,814 4,148,176 4,352,836 1,149,944 6,852,979 1,342,764 27,180 4,324,118 3,498,058 93,482 69,883 73,325 119,841 104,810 618,652
816,402 445,183 1,036,124 311,166 166,720 997,472
- - - 305,377 307,831 365,436
38,645,946 49,062,937 49,736,077 51,214,231 75,401,438 99,259,204 6,995,184 6,873,224 8,920,674 11,912,545 11,207,272 12,678,363 7,608,120 7,235,324 8,668,285 9,322,801 10,948,781 11,758,456 6,448,010 6,357,423 11,352,463 16,934,678 16,961,656 18,824,672 473,415 455,937 1,014,887 - - -
7,425,212 7,993,126 7,822,195 - - -
- - - 2,454,031 2,532,325 3,323,817
- - - 3,852,658 4,500,883 4,752,079
- - - 2,577,336 2,804,868 3,000,504
- - - - - -
16,208,232 9,788,546 5,297,511 7,931,040 20,687,571 45,401,670 - - 222,740 228,620 234,655 240,850
- 117,333 261,060 284,434 277,633 485,380
- - - - - 644,877
36,922,138 45,158,173 38,820,913 43,559,815 70,155,644 101,110,668 5,718,775 (6,512,227) 10,242,024 6,176,262 5,245,794 (1,851,464) - 10,000,000 - - - -
- - - - - -
29,983 33,316 124,704 242,464 643,106 3,863,742
(29,983) (33,316) (124,704) (242,464) (643,106) (3,863,742) - - - 119,201 38,545 212,418
- - - - - 33,390,000
- - - - - 2,988,185
- 10,000,000 - 119,201 38,545 36,590,603
6,060,524 (6,512,227) 20,242,024 6,176,262 5,284,339 34,739,139 $ 6,060,524 $ (6,512,227) $ 20,242,024 $ 6,176,262 $ 5,284,339 $ 34,739,139
0.00% 0.00% 0.40% 1.26% 1.11% 68.14%
Fiscal Year Ended June 30,
DRAFT 213
City of Goleta
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
-166-
Fiscal Year Secured Taxable Secured Taxable Total
Ended and Less: Assessed and Less: Assessed Direct Tax
June 30, Unsecured Exemptions Value Unsecured Exemptions Value (A) Rate (A) 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 8,710,373,052 1,939,990,804 223,988,797 1,716,002,007 1.05429% 2024 9,735,794,333 362,999,526 9,372,794,807 2,155,776,311 228,216,372 1,927,559,939 1.05155% 2025 10,193,893,737 376,999,056 9,816,894,681 2,162,088,134 235,258,674 1,926,829,460 1.04804% 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.
City Redevelopment Agency
Source: Santa Barbara County Assessor
DRAFT 214
City of Goleta
Direct and Overlapping Governments Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of taxable value)
-167-
2016 2017 2018 2019
City Direct Rates:
City of Goleta Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 Overlapping Rates (2):
Goleta Unified School District 0.01248 0.01061 0.00955 0.00907 Santa Barbara City College 0.00850 0.00731 0.00731 0.00731 Santa Barbara High School District 0.01670 0.01581 0.02692 0.02417 Total Direct and Overlapping Tax Rates 1.04159 1.03768 1.03373 1.04378 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) 0.05094 0.05095 0.05090 0.05081 Notes:
(1)
(2)
(3)
(4)
(5)
Sources: Santa Barbara Auditor-Controller
City of Goleta, Finance Department
Total Direct Rate is the weighted average of all individual direct rate applied to by the government preparing the statistical section information and excludes revenue derived from aircraft. Beginning in fiscal year 2013-14 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.
In 1978, California voters passed Proposition 13 which set 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 for the payment of any voter approved bonds.
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
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.
Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment for the State of California for the fiscal year 2012-13 and years thereafter.
Fiscal Year Ended June 30,
DRAFT 215
-168-
2020 2021 2022 2023 2024 2025
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.00862 0.00776 0.02621 0.02124 0.01977 0.01711
0.00731 0.00731 0.00709 0.00688 0.00654 0.00713
0.02417 0.02414 0.02415 0.02617 0.02524 0.02380
1.04055 1.04010 1.03921 1.05429 1.05155 1.04804
0.04903 0.04903 0.04903 0.04903 0.04903 0.04903
- - - - - - 0.05080 0.04835 0.04840 0.04840 0.04850 0.04850 Fiscal Year Ended June 30,
DRAFT 216
City of Goleta
Principal Property Tax Payers
Current Fiscal Year and Nine Years Ago
-169-
Percent of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Primary Use Value Value
Ruby SB Hotel LLC Commercial $ 521,253,786 5.31%
Goleta Hollister Apartments LLC Residential 136,900,452 1.39% SP Maravilla LLC Institutional 134,924,396 1.37%
Deckers Cabrillo LLC Commercial 132,812,191 1.35%
Raytheon Company Unsecured 122,164,064 1.24%
Google Inc Commercial 118,798,366 1.21%
Camino Real II Limited Liability Company Commercial 112,672,164 1.15% Goleta Energy Storage LLC Industrial 105,525,340 1.07%
FLIR Commercial Vision Systems Inc Commercial 104,685,477 1.07% Willow Springs LP Residential 79,727,610 0.81%
Top Ten Total $ 1,569,463,846 15.97%
Percent of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Primary Use Value Value
BRS Investment Properties LLC Residential $ 189,646,318 3.23% SP Maravilla, LLC Institutional 113,651,022 1.94%
Camino Real II Limited Liability Company Commercial 91,388,925 1.56% RCS Los Carneros LLC Industrial 90,319,410 1.54%
FLIR Commercial Vision Systems Inc Unsecured 79,533,638 1.36% Deckers Cabrillo LLC Commercial 79,399,403 1.35%
Raytheon Company Industrial 73,818,632 1.26%
Citrix Systems Inc Unsecured 64,680,489 1.10%
Lockheed Martin Missiles and Fire Control Unsecured 50,927,280 0.87% Nassau Land Company LP Commercial 49,625,365 0.85%
Top Ten Total $ 882,990,482 15.06%
Note: The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: Santa Barbara County Assessor
2016
2025
DRAFT 217
City of Goleta
Property Tax Levies and Collections
Last Ten Fiscal Years
-170-
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30, Fiscal Year Amount of Levy Years Amount of Levy 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%
2024 4,503,412 4,503,412 100.00% - 4,503,412 100.00%
2025 4,718,308 4,718,308 100.00% - 4,718,308 100.00%
(1)
Note: The amounts above include the City of Goleta secured property taxes only.
Source: City of Goleta, Finance Department
The City participates in the Teeter Plan. The Teeter Plan is an alternative method of apportioning property tax money. Cities participating 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.
Collected within the
Fiscal Year of Levy Total Collections to Date (1)
DRAFT 218
City of Goleta
Revenue and Rate of Transient Occupancy Tax
Last Ten Fiscal Years
-171-
Transient
Fiscal Occupancy Taxes Transient
Year Ended for the Occupancy Tax
June 30, Fiscal Year Rate
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 13,884,890 12%
2024 14,234,251 12%
2025 14,110,060 12%
Source: City of Goleta, Finance Department
DRAFT 219
City of Goleta
Principal Transient Occupancy Tax Payers
Current Fiscal Year and Nine Years Ago
-172-
2025
Ritz Carlton Bacara
Hilton Garden Inn
Residence Inn by Marriott
The Leta (Goodland)
Courtyard by Marriott
South Coast Inn (Best Western)
Goleta Hampton Inn
Pacifica Suites (The Steward)
Motel 6
2016
Bacara Resort & Spa
The Goodland
Hampton Inn
Marriott Courtyard
Motel 6
Pacifica Suites
South Coast Inn
Super 8 Motel
Note:
Top transient occupancy tax payers are listed in alphabetical order.
Source: City of Goleta, Finance Department
DRAFT 220
City of Goleta
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
-173-
Fiscal Year Lease Revenue Total Percentage Debt
Ended Capital and Sales Governmental of Personal per
June 30, Leases Leases (1) SBITA (1) Tax Bonds Other Activities Income Capita 2016 $ - $ - $ - $ - $ - $ - 0.00% - 2017 - - - - - - 0.00% - 2018 - - - - - - 0.00% - 2019 - - - - 4,655,646 4,655,646 0.40% 142 2020 - - - - 3,879,705 3,879,705 0.32% 120
2021 10,000,000 - - - 3,103,764 13,103,764 1.05% 405
2022 9,777,260 - - - 2,327,823 12,105,083 0.90% 371
2023 9,548,641 38,051 65,201 - 1,551,882 11,203,775 0.77% 345 2024 9,313,985 30,484 65,795 - 775,941 10,186,205 0.63% 313 2025 9,073,135 212,418 39,166 36,378,185 - 39,607,057 2.30% 1,209 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
The amount of outstanding debt by type reported above is net of related premiums and discounts. (1) The City adopted GASB 87 and GASB 96 in FY 2022-23 and prior year amounts were not restated.
Source: City of Goleta, Finance Department
DRAFT 221
City of Goleta
Direct and Overlapping Governmental Activities Debt
For the Year Ended June 30, 2025
-174-
2024-2025 Assessed Valuations: $9,816,907,721
Total City's Share of
Outstanding Debt Percentage Overlapping Debt
Direct and Overlapping Tax and Assessment Debt 6/30/2025 Applicable (1) 6/30/2025 Santa Barbara Community College District $ 45,740,000 12.670% 5,795,258 $ Santa Barbara Unified School District 145,920,000 14.401% 21,013,939 Goleta Union School District 78,275,000 53.013% 41,495,926 Santa Barbara High School District 56,159,327 14.401% 8,087,505 City of Goleta - 100.000% - Total Direct and Overlapping Tax and Assessment Debt $ 76,392,628 Overlapping General Fund Debt
Santa Barbara County General Fund Obligations $ 113,330,000 8.525% 9,661,383 $ City of Goleta General Fund Obligation $ 27,808,135 100.000% 27,808,135 $ Goleta West Sanitary District General Fund Obligation $ 12,684,000 77.274% 9,801,434 $ Total Gross Overlapping General Fund Debt $ 47,270,952
Less: Santa Barbara County supported obligations 63,085 Total Net Overlapping General Fund Debt $ 47,207,867
Overlapping Tax Increment Debt (Successor Agency): $ 10,085,000 100.000% 10,085,000 $ Total Direct Debt $ 27,808,135.00
Total Gross Overlapping Debt $ 105,940,445
Total Net Overlapping Debt $ 105,877,360
Gross Combined Total Debt $ 133,748,580 (2)
Net Combined Total Debt $ 133,685,495
Ratios to 2024-2025 Assessed Valuations:
Direct Debt 0.78%
Total Direct and Overlapping Tax and Assessment Debt 0.28% Gross Combined Total Debt 1.36%
Net Combined Total Debt 1.36%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,468,331,433):
Total Overlapping Tax Increment Debt 0.69%
Notes:
Source: County of Santa Barbara
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
(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.
DRAFT 222
City of Goleta
Computation of Legal Debt Margin
Last Ten Fiscal Years
-175-
2016 2017 2018 2019
Assessed valuation $ 6,089,379,285 $ 6,399,862,393 $ 6,840,494,388 $ 7,443,765,341 Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 1,522,344,821 1,599,965,598 1,710,123,597 1,860,941,335 Debt limit percentage 15% 15% 15% 15%
Debt limit 228,351,723 239,994,840 256,518,540 279,141,200 Total net debt applicable to limitation - - - - Legal debt margin $ 228,351,723 $ 239,994,840 $ 256,518,540 $ 279,141,200 Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
Source: City of Goleta, Finance Department
Fiscal Year Ended June 30,
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.
DRAFT 223
-176-
2020 2021 2022 2023 2024 2025
$ 7,765,120,920 $ 8,248,711,546 $ 8,495,247,271 $ 9,035,530,759 $ 9,735,800,733 $ 10,193,900,777 25% 25% 25% 25% 25% 25%
1,941,280,230 2,062,177,887 2,123,811,818 2,258,882,690 2,433,950,183 2,548,475,194 15% 15% 15% 15% 15% 15%
291,192,035 309,326,683 318,571,773 338,832,403 365,092,527 382,271,279 - - - - - - $ 291,192,035 $ 309,326,683 $ 318,571,773 $ 338,832,403 $ 365,092,527 $ 382,271,279
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year Ended June 30,
DRAFT 224
City of Goleta
Demographic and Economic Statistics
Last Ten Fiscal Years
-177-
Santa Barbara
Fiscal Year County Personal Per Capita Unemployment
Ended Population (1) Population (1) Income (2) Income (2) Rate June 30, City of Goleta (in thousands) (in thousands) (in thousands) (3) 2016 31,235 447 $ 1,015,220 32.5 3.10%
2017 31,760 451 1,085,697 34.2 3.00%
2018 31,949 453 1,110,756 34.8 3.60%
2019 32,759 447 1,168,689 35.7 2.40%
2020 32,223 452 1,217,385 37.8 2.30%
2021 32,339 441 1,250,318 38.7 6.30%
2022 32,591 443 1,351,637 41.5 3.90%
2023 32,442 442 1,451,177 44.7 2.30%
2024 32,515 443 1,607,802 49.4 2.70%
2025 32,747 442 1,719,968 52.5 2.90%
Sources:
(1) California Department of Finance, HDL Demographics & Economic Statistics (2) U.S. Department of Commerce, Bureau of Economic Analysis (Santa Barbara-Santa Maria-Goleta) (3) California Employment Development Department
City of Goleta
DRAFT 225
City of Goleta
Principal Employers
Current Fiscal Year and Nine Fiscal Years Ago
-178-
Employment % Employment %
Number of to Total Number of to Total
Employer Employees Population Employer Employees Population University of California, Santa Barbara (1) 6,613 20.29% Raytheon 1,150 3.68% AppFolio 1,700 5.22% Sansum Clinic 1,020 3.27%
Raytheon 1,400 4.30% Bacara Resorts 600 1.92%
Sansum Clinc 1,200 3.68% Citrix Online 600 1.92%
The Ritz-Carlton Bacara 650 1.99% Tecolote Research 570 1.82% Deckers Brands 600 1.84% Goleta Union School District 565 1.81% Goleta Union School District 547 1.68% Jordano's 561 1.80% Teledyne FLIR LLC 514 1.58% Deckers Outdoors 545 1.74%
Karl Storz Imaging 400 1.23% Yardi Systems 535 1.71%
Jordano's 350 1.07% FLIR Commercial Vision Systems 450 1.44% Bruker Nano 300 0.92% AppFolio 400 1.28%
Inogen 270 0.83% Karl Storz Imaging 350 1.12%
Communify 268 0.82% Goleta Valley Cottage Hospital 348 1.11% Curvature 315 1.01%
Medtronic 250 0.80%
Costco 233 0.75%
Santa Barbara Focalplane 219 0.70%
Inogen Inc 180 0.58%
The Home Depot 161 0.52%
(1) University of California, Santa Barbara is outside of Goleta city limits, but is within close proximity.
Employment data is intended for use as a general guide only. The City of Goleta does not warrant the accuracy of this data.
Inquiries should be directed to the respective employer.
Source: City of Goleta
2025 2016
DRAFT 226
City of Goleta
Full-Time and Part-Time City Employees by Function
Last Ten Fiscal Years
-179-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government 16.30 16.30 16.40 15.65 15.65 17.65 16.90 17.65 18.90 19.00 General Services - - - - - - 3.00 5.00 6.00 7.00
Library Department (1) - - 9.38 9.38 15.38 15.38 16.13 17.13 17.13 17.13 Administrative Services (2) - - - - - - - - - - Finance Department 6.00 6.00 6.00 7.00 7.00 7.00 10.00 12.00 12.00 12.00 Planning and
Environmental Services 14.80 15.80 15.00 15.00 15.50 17.50 18.50 18.50 20.50 19.50 Neighborhood Services
and Public Safety 4.00 5.00 5.00 5.00 6.00 6.00 6.50 9.50 10.50 11.00 Public Works 22.90 22.90 21.90 22.90 25.90 25.90 29.00 36.00 36.50 39.00 Total 55.70 64.00 66.00 73.68 74.93 85.43 89.43 100.03 121.53 124.63 (1) In fiscal year 2019-2020; the City Council approved the transition to assume management and operations of the Buellton and Solvang Libraries beginning on July 1, 2019.
Source: City of Goleta, Finance Department
Function
Fiscal Year Ended June 30,
DRAFT 227
City of Goleta
Operating Indicators by Function
Last Ten Fiscal Years
-180-
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police (1):
Calls for Service 25,025 23,894 22,690 21,802 21,933 20,281 22,359 21,218 19,953 21,332 Citations 1,033 871 834 1,073 550 858 1,564 997 958 1,333 Reports Taken 3,238 3,329 3,218 3,204 3,170 2,881 3,402 2,938 2,684 2,664 Fire (2):
Calls for Service 3,856 3,962 4,140 5,184 4,113 5,109 4,424 3,453 3,337 3,629 Public works (3):
Street resurfacing (miles) - 6.7 6.8 3.3 1.8 1.2 3.8 2.7 0.4 0.3 Sources:
(1) Santa Barbara County Sheriff Department
(2) Santa Barbara County Fire Department
(3) City of Goleta's Public Works Department
Fiscal Year Ended June 30,
DRAFT 228
City of Goleta
Capital Asset Statistics by Function
Last Ten Fiscal Years
-181-
2016 2017 2018 2019
Public Safety:
Police Stations (1) - - - -
Fire Stations (2) 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 1 1 1 1
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 (3) 103 103 103 103
Number of Vehicles (City-wide) 18 21 21 21
Corporation Yard 1 1 1 1
(1) City contracts with County of Santa Barbara for Law Enforcement Services. (2) Fire Department related services are provided by the County Fire Department. (3) There are one thousand five hundred sixty seven (1,567) streetlights owned and maintained by Southern California Edison (SCE) in addition to those owned and maintained by the City.
Source: Various City of Goleta Departments
Fiscal Year Ended June 30,
Function
DRAFT 229
-182-
2020 2021 2022 2023 2024 2025
- - - - - - 3 3 3 3 3 3
550 550 550 550 550 550
1 1 1 1 1 1
3 3 3 3 3 3
1 1 1 1 1 1
1 1 1 1 1 1
5 5 5 5 5 5
1 1 1 1 1 1
1 1 1 1 1 1
4 4 4 4 4 4 - - - - - - 8.0 8.0 8.0 8.0 8.0 8.0
174.0 174.0 174.0 187.2 187.2 187.2
1,433 1,433 1,433 1,464 1,464 1,464
21 22 24 31 31 26
1 1 1 1 1 1
Fiscal Year Ended June 30,
DRAFT 230
ATTACHMENT 2:
Government Auditing Standards Letter
DRAFT 231
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
-1-
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, 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 States (Government Auditing Standards), 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 year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 22, 2025.
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 procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. 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 employees, 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 internal 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. 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 that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that were not identified.
DRAFT 232
-2-
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 financial statements. 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 noncompliance 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 effectiveness 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
December 22, 2025
DRAFT 233
ATTACHMENT 3:
Statement of Auditing Standards Letter
DRAFT 234
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
-1-
December 22, 2025
To the Honorable Mayor and Members of the City Council
City of Goleta, California
We have audited the financial statements of the City of Goleta (the City) as of and for the year ended June 30, 2025, and have issued our report thereon dated December 22, 2025. 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 April 8, 2025, 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 free of material misstatement. An audit of financial statements includes consideration of the system 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 City’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of 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.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.
DRAFT 235
-2-
We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the entity. We have identified a threat to our independence (preparation of the entity’s financial statements, creating a selfreview threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:
Prior to the issuance of the entity’s financial statements, another partner or manager, independent of the engagement, will review the financial statements.
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 Entity’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 entity is included in Note 1 to the financial statements. The City adopted GASB Statement No. 101, Compensated Absence, and GASB Statement No. 102, Certain Risk Disclosures during 2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the 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 and Related Disclosures Accounting estimates and related disclosures 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 assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
DRAFT 236
-3-
The most sensitive accounting estimates affecting the City’s financial statements are:
Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports 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 basic financial statements taken as a whole and in relation to the applicable opinion units.
Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are 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 basic financial statements taken as a whole and in relation to the applicable opinion units.
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 basic financial statements represents amounts susceptible to market fluctuations.
The disclosure of capital assets (and related accumulated depreciation) in the basic financial statements is based on historical information which could differ from actual lives of each capitalized item.
The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.
The disclosures of the other post-employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.
The disclosure of leases and subscription liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the agreements which could differ from actual amounts.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
DRAFT 237
-4-
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected 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. There were no uncorrected misstatements noted.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. 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 or applicable opinion unit.
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 December 22, 2025.
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 entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement.
None of the matters discussed resulted in a condition to our retention as the entity’s auditors.
DRAFT 238
-5-
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the entity’s annual reports, does not extend beyond the 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 have:
Read the transmittal letter and statistical section and considered whether a material inconsistency existed between the other the information and the basic financial statements, or the other information otherwise appears to be materially misstated. 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 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 with the information, or manner of its presentation, appearing in the financial statements.
This report is intended solely for the information and use of the City Council and management of the entity and is not intended to be and should not be used by anyone other than these specified parties.
Very truly yours,
DRAFT 239
C I TY C OU N C I L
Paula Perotte
Mayor
Luz Reyes-Martín
Mayor Pro Tempore
District 1
Stuart Kasdin
Councilmember
James Kyriaco
Councilmember
District 2
Kyle Richards
Councilmember
C I TY M A N A G E R
Robert Nisbet
December 22,2025
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) which compromise the statement of financial position as of June 30, 2025, and the respective change in financial position governmental activities, each major fund, and the aggregate remaining fund information of the City for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the financial statements of the various opinion units are presented fairly, in all material respects, 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 December 22, 2025:
Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated May 8, 2025, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.
• The financial statements refer to above have been fairly presented in accordance with U.S. GAAP and include all properly classified funds, required supplementary information, and noted to the basic financial statements. • We acknowledge our responsibility for the design, implementation, and maintenance of the system 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. • The methods, data and significant assumptions used by us in making accounting estimates and their related disclosures, are appropriate to achieve Docusign Envelope ID: 36DD8C83-A1E7-4623-8B3A-6C69FCF7DE47 DRAFT 240
recognition, measurement, or disclosure that is reasonable in the context of U.S. GAAP. • All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. • All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
• The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP.
• All component units, as well as joint ventures with an equity interest, if any, are included and other joint ventures and related organizations are properly disclosed. • All funds and activities are properly classified.
• All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users.
• All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved. • Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
• All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
• All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. • All interfund and intra-entity transactions and balances have been properly classified and reported.
• Special items and extraordinary items have been properly classified and reported. • Deposit and investment risks have been properly and fully disclosed. • Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
• Nonexchange and exchange financial guarantees, either written or oral, under which it is more likely than not that a liability exists have been properly recorded, or if we are obligated in any manner, are disclosed
• We have reviewed, approved, and taken responsibility for the financial statements and related notes.
• We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements. • We have evaluated all of our lease and subscription agreements and have given you our assessment as to whether each agreement is subject to GASB Statement No. 87, Leases and GASB Statement No. 96, Subscription Based Information Technology Arrangements. • With regard to investments and other instruments reported at fair value:
− The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action. − The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied.
Docusign Envelope ID: 36DD8C83-A1E7-4623-8B3A-6C69FCF7DE47 DRAFT 241
− The disclosures related to fair values are complete, adequate, and in accordance with U.S.
GAAP.
− There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements.
• With regard to pensions and OPEB:
− We believe that the actuarial assumptions and methods used to measure pension and OPEB liabilities and costs for financial accounting purposes are appropriate in the circumstances. − We are unable to determine the possibility of a withdrawal liability from the Plan, and are not currently contemplating withdrawing from the Plan.
− Increases in benefits, elimination of benefits and all similar amendments have been disclosed in accordance with U.S. GAAP and are included in the most recent actuarial valuation, or disclosed as a subsequent event.
• We have conducted a comprehensive risk assessment and disclosed all material concentrations and constraints in accordance with GASB Statement No. 102, Certain Risk Disclosures. These disclosures provide sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact associated with the concentration or constraint, if applicable. • We have evaluated the concentrations and constraints, including those that occur subsequent to the statement of net position date but before the financial statements are issued and have been properly disclosed in the financial statements as subsequent events. • With respect to preparation of the financial statements, we have performed the following:
− Made all management decisions and performed all management functions; − Assigned a competent individual to oversee the services; − Evaluated the adequacy of the services performed;
− Evaluated and accepted responsibility for the result of the service performed; and − Established and maintained internal controls, a process to monitor the system of internal controls.
• There have been no changes or updates to legal information disclosed to you by our attorneys since the date of such legal response and now.
Information Provided
• We have provided you with:
− Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; − Additional information that you have requested from us for the purpose of the audit; and − Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
− A written acknowledgement of all the documents that we expect to issue that will be included in the annual report and the planned timing and method of issuance of that annual report; − A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditor’s report. • The financial statements and any other information included in the annual report are consistent with one another, and the other information does not contain any material misstatements. • All information provided in electronic form are true representations of the original documents. • All transactions have been recorded in the accounting records and are reflected in the financial statements.
• We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
Docusign Envelope ID: 36DD8C83-A1E7-4623-8B3A-6C69FCF7DE47 DRAFT 242
• We have provided to you our analysis of the entity’s ability to continue as a going concern, including significant conditions and events present, concentrations and constraints, and we believe that our use of the going concern basis of accounting is appropriate. • We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
− Management;
− Employees who have significant roles in internal control; or − Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any instances, that have occurred or are likely to have occurred, of fraud and noncompliance with provisions of laws and regulations that have a material effect on the financial statements or other financial data significant to the audit objectives, and any other instances that warrant the attention of those charged with governance, whether communicated by employees, former employees, vendors (contractors), analysts, regulators, or others. • We have no knowledge of any instances that have occurred or are likely to have occurred, of noncompliance with provisions of contracts and grant agreements that has a material effect on the determination of financial statement amounts or other financial data significant to the audit objectives.
• We have no knowledge of any instances that have occurred or are likely to have occurred of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives.
• We have a process to track the status of audit findings and recommendations. • We have identified for you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. • We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. • We have disclosed to you the identity of all the City’s related parties and the nature of all the related party relationships and transactions of which we are aware. • We have disclosed to you all communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. • The entity has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
• For nonexchange financial guarantees where we have declared liabilities, the amount of the liability recognized is the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. Where there was no best estimate but a range of estimated future outflows has been established, we have recognized the minimum amount within the range.
• We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in PreNovember 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year. • We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. • We are not aware of any pending or threatened litigation, claims, or assessments, or unasserted claims or assessments that are required to be accrued or disclosed in the financial statements in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Docusign Envelope ID: 36DD8C83-A1E7-4623-8B3A-6C69FCF7DE47 DRAFT 243
Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements (FASB Accounting Standards CodificationTM (ASC) 450, Contingencies), and we have not consulted a lawyer concerning litigation, claims, or assessments. • We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees where it is more likely than not that the entity will make a payment on any guarantee. • There are no:
− Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations. − Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62.
− Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62
− Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
• The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
• We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
Use of a Specialist
• We agree with the findings of specialists in evaluating the entity’s net pension and net other postemployment benefit liabilities and related deferred amounts and have adequately considered the qualifications of the specialist in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the specialists.
Cybersecurity
• There have been no cybersecurity breaches or other cyber events whose effects should be considered for disclosure in the financial statements, as a basis for recording a loss contingency, or otherwise considered when preparing the financial statements.
Supplementary Information in Relation to the Financial Statements as a Whole With respect to supplementary information accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America. • We believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. • The methods of measurement or presentation have not changed from those used in the prior period.
• We believe any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.
Docusign Envelope ID: 36DD8C83-A1E7-4623-8B3A-6C69FCF7DE47 DRAFT 244
• When the supplementary information is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor’s report thereon.
• We acknowledge our responsibility to include the auditor’s report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information.
• We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the City of the supplementary information and the auditor’s report thereon.
Required Supplementary Information
With respect to the required supplementary information accompanying the financial statements:
• We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP.
• We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP.
• The methods of measurement or presentation have not changed from those used in the prior period.
• We believe the significant assumptions or interpretations underlying the measurement or presentation of the required supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.
Accounting Estimates and Related Disclosures
• The significant judgments made in making the accounting estimates have taken into account all relevant information of which we are aware.
• We have consistently and appropriately selected and applied methods, assumptions, and data when making accounting estimates.
• The assumptions we used in making and disclosing accounting estimates appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity, when relevant to the accounting estimates and disclosures.
• The disclosures related to accounting estimates, including those disclosures describing estimation uncertainty, are complete and are reasonable in the context of the applicable financial reporting framework.
• We have obtained and applied appropriate specialized skills and expertise in making accounting estimates, if needed.
• We are not aware of any events subsequent to the date of the financial statements that require adjustment to our accounting estimates and related disclosures included in the financial statements.
Luke Rioux, Finance Director
Docusign Envelope ID: 36DD8C83-A1E7-4623-8B3A-6C69FCF7DE47 DRAFT 245
ATTACHMENT 4:
Independent Accountant’s Report on Gann Spending Limit
DRAFT 246
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
-1-
Independent Accountant’s Report
To the Honorable City Council
City of Goleta, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Worksheet of the City of Goleta, California (the City) for the year ended June 30, 2025. The management of the City is responsible for the accompanying Appropriations Limit Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. These procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution, were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose.
The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.
Finding: No exceptions were noted as a result of our procedures.
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
DRAFT 247
-2-
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and management of the City of Goleta, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
San Bernardino, California
December 22, 2025
DRAFT 248
-3-
City of Goleta
APPROPRIATIONS LIMIT WORKSHEET
2024 – 2025
Change in California Per Capita Personal Income 3.62%
Change in the Population for the
County 0.28%
Change in California Per Capita Personal Income
Converted to a Ratio 1.036200
Change in County Population
Converted to a Ratio 1.002800
Calculation of Growth Factor (1.036200 x 1.002800) 1.039101 Fiscal Year 2023 - 2024 Limit $ 75,864,694
Fiscal Year 2024 - 2025 Limit
($75,864,694 x 1.039101) $ 78,831,106
DRAFT 249
ATTACHMENT 5:
Presentation
DRAFT 250
Annual Comprehensive
Financial Report (ACFR) for
the Year Ended
June 30, 2025
City Council Meeting
February 17, 2026
DRAFT251
Presentation Outline
ACFR Background
ACFR Reporting Model
ACFR Financial Highlights
Certificates of Achievement
Auditors Communication and Summary Results
2 DRAFT252
ACFR Background
Annual audit required; contract with independent CPA firm Annual financial report prepared in accordance with nationally recognized accounting principles and financial reporting standards Communicates and presents the financial condition and results of operations of the City as a whole and for individual funds
“Comprehensive” because it includes information not required by financial reporting regulations
Received an unmodified (“clean”) opinion for FY 2024/25 Single Audit is required for FY 2024/25, due to exceeding $750k threshold (approximately $12 million). The Single Audit will be completed by March 2025. 3 DRAFT253
ACFR Reporting Model
4 INTRODUCTORY SECTION
FINANCIAL SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
(MD&A)
AUDITED FINANCIAL STATEMENTS
Government-Wide (Full Accrual)
Governmental Activities
(No Business-Type Activities or Fiduciary Funds)
Fund
Governmental (Modified Accrual)
Fiduciary (Full Accrual)
(No Proprietary Funds)
Notes to the Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
DRAFT254
• Transmittal Letter
• Principal City Officials
• Organizational Structure
• Certificate of Achievement
ACFR Reporting Model
5 Introductory Section
• Independent Auditor’s Report
• Management’s Discussion and Analysis
• Government-Wide and Fund Financial Statements
• Notes to the Financial Statements
• Required Supplementary Information
• Combining Financial Statements and Schedules
• Selected financial trends and demographic information Statistical Section
Financial Section
DRAFT255
ACFR Financial Highlights
6 Increase of approximately $35.7 million or 12.3% from the prior fiscal year of $290.45 million. Increase of approximately $24.1 million or 32% from the $75.40 million in revenues the previous fiscal year. Decrease of approximately $13.1 million or 2.1% when compared to last fiscal year.
Fund Balance:
Non-spendable:
Prepaid Items $ 109,384
Committed 17,480,275
Assigned 26,124,383
Unassigned 9,467,780
Total Fund Balance
DRAFT
$ 53,181,822
256
ITEM III:
Second Quarter Financial Review –
FY 2025/26 (Draft)
257
Agenda Item X.x
CONSENT CALENDAR
Meeting Date: February 17, 2026
TO: Mayor and Councilmembers
SUBMITTED BY: Luke Rioux, Finance Director
PREPARED BY: Tony Gonzalez, Accounting Manager
Shawna Stokes, Budget Analyst
SUBJECT: Fiscal Year 2025/26 Second Quarter Financial Review RECOMMENDATION:
Adopt Resolution No. 26-__ entitled, “A Resolution of the City Council of the City of Goleta, California, Amending the City of Goleta Operating and CIP Budget for Fiscal Year 2025/26.” BACKGROUND:
This report provides a financial update on the City’s preliminary actual revenue and expenditure activity through the second quarter (Q2) of the Fiscal Year (FY) 2025/26 Operating and Capital Improvement Program (CIP) Budget, which was adopted on June 17, 2025, as part of the two-year FY 2025/26 and FY 2026/27 budget plan. The information in this report is preliminary and provides a review of the revenue and expenditure activity from July 1 through December 31, 2025, and other relevant financial information.
Additionally, this report recommends various adjustments to the adopted budget.
In analyzing the attached report, the following information should be taken into consideration:
1. Revenues and expenditures are recorded during the period received or paid. It is only at the end of the fiscal year that accrual entries are made to associate the revenues and expenditures to the corresponding period.
2. The receipt of revenues varies according to the source of funding, so the September totals may not represent three months of revenues in many categories. For example, “Traditional” Property Tax payments are normally received as follows: 55% in December, 41% in April, and 4% in June.
3. Expenditures for salaries and some operating costs may be disbursed evenly on a month-to-month basis; however, there are some expenditure line items whereby funds are released or encumbered at the start of the new fiscal year. In addition, expenditures for Liability Insurance, Workers Compensation and Debt Service are made on a quarterly, semi-annual or annual basis.
DRAFT 258
Meeting Date: February 17, 2026
DISCUSSION:
General Fund Budget Summary:
Table 1 summarizes the General Fund’s prior year activity, adopted budget, current budget and recommended amendments.
Table 1 - General Fund Budget Summary
FY 2025/26 Adopted Budget Recap
The FY 2025/26 Adopted Budget was approved on June 17, 2025, with total expenditures at $53.5 million. The adopted budget incorporated updated revenue estimates to capture increases in property tax, transactions and use tax, and building and planning permit activity. The budget also included increasing expenditures related to salaries and benefits, personnel reclassifications, adjusting for the police services contract, annual debt service payment for the Lease Revenue Bonds, and one-time General Fund appropriations to support several critical projects.
FY 2025/26 Current Budget Recap and Recommended Amendments The FY 2025/26 Current Budget total expenditures are now at $78 million, which includes various one-time appropriations:
• Carryover budget of $23.4 million (supported by one-time fund balance of the General Fund), which was detailed in the Q1 Financial Report taken to City Council on December 16, 2025.
• New appropriations of $1.3 million authorized by the City Council since July 1, 2025.
The City Council has approved various new expenditure budget appropriations totaling approximately $1.3 million. New appropriations included one-time additional funding needed for the GCC Electrical System Replacement, the Shelby Project Environmental Review, and the Friends of the Goleta Valley Library for upgraded furnishings.
FY 2025/26 Q2 – General Fund Recommended Amendments Summary:
Staff recommends a budget adjustment this quarter, which includes an increase of $69,598 to revenues and an increase of $119,598 to expenditures. These adjustments are Category
2024/25
Actuals
2025/26
Adopted Budget
2025/26
Current Budget
Recommended
Amendments
2025/26
Amended Budget
Revenues and Other Sources 45,613,120 $ $ 51,364,345 $ 51,521,345 $ 69,598 $ 51,590,943 Operating Expenditures $ 38,289,351 $ 51,160,294 $ 60,249,847 $ 119,598 $ 60,369,445 Capital Expenditures $ 2,077,239 $ 2,373,700 $ 17,792,054 $ 17,792,054 0 $ Total Expenditures $ 40,366,590 $ 53,533,994 $ 78,041,902 $ 119,598 $ 78,161,499 Net Change to Fund Balance 5,246,530 $ $ (2,169,649) $ (26,520,557) $ (50,000) $ (26,570,557) Beginning Fund Balance $ 39,483,690 $ 52,983,833 $ 52,983,833 $ - $ 52,983,833 Ending Fund Balance $ 44,730,221 $ 50,814,184 $ 26,463,277 $ (50,000) $ 26,413,277 DRAFT 259
Meeting Date: February 17, 2026
summarized in the General Fund Revenue Analysis and Expenditure Analysis sections below and are summarized as follows:
• Staff recommends a net increase of $69,598 in revenues, which is listed below:
o $68,598 Street Maintenance Interfund Reimbursements
o $1,000 Goleta Library Donations
• Staff recommends a net increase of $119,598 in expenditures, which is listed below:
o General Services;
$50,000 Professional Services
o Public Works;
$68,598 Maintenance – Pavement Rehab
o Goleta Library;
$1,000 Books and Subscriptions
Attachment 1 provides the General Fund Statement of Revenues and Expenditures, which summarizes the major revenue and expenditure categories by department.
General Fund Revenue Analysis:
The tables presented in this section include budget-to-actual comparisons between the current fiscal year and the previous fiscal year's quarter-to-date actuals. Property tax, sales tax, transaction and use tax, and transient occupancy tax are the City’s major tax revenues.
They account for over 85.8% of total General Fund revenues. Table 2 summarizes the second quarter budget-to-actual activity, which is followed by a brief discussion of the key revenue variances and where the City is trending.
Table 2 – General Fund FY 2025/26 Revenues through Q2 (December 31) Property Tax
Property tax is the City’s third largest revenue source, as it accounts for 20% of total General Fund revenues. It also remains the City’s most stable revenue category. Property tax revenues are composed of three main components:
Prior Year
Revenues Year End Actuals
Qtr YTD
Actuals
Current
Budget Qtr YTD Actuals
%
Realized
Qtr YTD
% Chg
Property Taxes $ 10,136,928 $ 2,429,765 $ 10,296,800 $ 2,484,727 24.1% 2.3% Sales Taxes 8,980,584 3,282,430 8,806,000 3,301,499 37.5% 0.6% Transaction and Use Tax 12,322,825 3,961,996 11,300,000 5,713,262 50.6% 44.2% Transient Occupancy Tax 14,110,059 6,103,526 13,800,000 6,133,974 44.4% 0.5% Cannabis Tax 743,488 193,554 650,000 21.8% -26.9% 141,521 Franchise Fee 1,632,464 399,510 1,602,700 25.3% 1.7% 406,248 License & Service Charges 2,425,144 1,467,056 3,119,560 1,869,141 59.9% 27.4% Fines & Penalties 270,610 84,356 201,500 53.7% 28.2% 108,126 Interest & Rent Income 2,104,478 777,598 1,026,200 63.8% -15.7% 655,201 Reimbursements 1,175,150 247,449 392,900 114.0% 81.0% 447,868 Other Revenues 849,764 143,383 291,000 34.2% -30.5% 99,625 Other Sources 9,290 5,827 34,685 3.4% -79.6% 1,189
Total Revenues $ 54,760,784 $ 19,096,450 $ 51,521,345 $ 21,362,381 41.5% 11.9% FY 2024/25 FY 2025/26
DRAFT 260
Meeting Date: February 17, 2026
(1) “Traditional” Property Tax, which is received in large part during the months of December and April
(2) Property Tax in Lieu of Motor Vehicle License Fees (MVLF), which is received in two payments during January and May
(3) Monthly Documentary Transfer Tax revenue, which is derived from changes in ownership of real property and assessed value.
Total property tax revenues anticipated for the fiscal year are estimated at $10.3 million.
When compared to the prior year's quarter actuals, an increase of 2.3% is experienced in this category due to higher secured and unsecured Property Tax revenues received through the quarter, primarily driven by changes in assessed valuation.
Sales Tax (1% Bradley-Burns)
Sales tax is projected to be the City’s fourth largest General Fund revenue source at $8.8 million, representing 17.1% of total General Fund revenues. Sales tax is considered one of the City’s most economically sensitive and volatile revenue sources, given the dependency on consumer spending patterns and business activity. The City does not receive its full 1% sales tax (also known as Bradley-Burns) allocation of the 7.75% sales tax rate that is normally allocated to cities. The City shares 30% of the 1% sales tax revenues with the County of Santa Barbara, per the Revenue Neutrality Agreement (RNA). The amount projected to be shared this fiscal year is approximately $3.9 million.
The City’s sales tax base is generated from various main industry categories, including State and County Pools (primarily online sales), with a dominant share at an average of 18%. The next largest industry category is Restaurants and Hotels (dining establishments, fast food, and bars), now at 15%. When combined, these two industry groups account for 33% of the City’s sales tax base. It is then supplemented by Business and Industry (manufacturers and industrial), General Consumer Goods, Building and Construction, and Autos and Transportation at 13% to 14%. For comparison purposes, the percentage share by the nine major industry groups for the City is seen in Figure 1 below:
DRAFT 261
Meeting Date: February 17, 2026
Figure 1 - Sales Tax by Major Industry Groups
Sales tax revenues are estimated this fiscal year to reach $8.8 million. Through the end of the second quarter, sales tax receipts were tracking higher in comparison to the prior year's second quarter by 0.6% (or $19,069) at approximately $3.3 million. This is largely due to the California Department of Tax and Fee Administration (CDTFA) methodology on advancing payments and timing of payments received. When accounting for most recent data at the time of preparing this report (sales tax payments through December), sales tax revenues were at $3.3 million, an increase of 0.6%, when compared to the same period in the prior year. During the budget process, it was anticipated that sales tax activity would be relatively flat this year. Staff will have its next key sales tax meeting in May 2026.
Transaction and Use Tax (TUT)
The City’s Transaction and Use Tax (TUT) is projected to be the second largest General Fund revenue source for the City at $11.3 million, representing 21.9% of total General Fund revenues for FY 2025/26. Through the end of the second quarter, TUT revenues totaled $5.7 million or 50.6% of the budget and continue to trend in line with original projections.
FY 2025/26 represents the second full year of TUT collections, following voter approval of Measure B. Because the tax became effective on January 1, 2024, the first half of FY 2023/24 contains only partial data. As a result, FY 2023/24 will not provide a meaningful prior year benchmark for Q1 (July - September) and Q2 (October - December). Full-year comparative data begins in FY 2024/25, which now serves as the first complete baseline year. Staff is not recommending any adjustments and will have further updates in the Q3 Financial review in May.
Transient Occupancy Tax (TOT)
The City’s TOT is the largest General Fund revenue source at 26.8% this fiscal year. TOT has historically been the largest revenue source since FY 2012/13. TOT is the most volatile Autos and
Transportation
13%
Building and
Construction
13%
Business and Industry
14%
Food and Drugs
6%
Fuel and Service
Stations
7%
General Consumer
Goods
14%
Restaurants and Hotels
15%
Transfers and
Unidentified
1%
State and County Pools
18%
DRAFT 262
Meeting Date: February 17, 2026
and was the most impacted by the pandemic due to a decrease in overnight stays, and it has since recovered.
Based on actual receipts received by December 31, TOT revenues of $6.1 million were up
0.5% compared to the same quarter in the prior year. This increase is due to the timing of receipts processed by December 31. TOT is due within thirty days after the end of the prior month. For example, TOT collected for December is due by January 31. The $6.1 million reflected in the report represents July through November TOT receipts.
To accurately compare and analyze for performance, TOT should be reviewed on an accrual basis from July to December. Staff have prepared the following table for informational purposes to show how the City’s TOT is performing through the end of December on an accrual basis of actual receipts received. Table 3 summarizes TOT revenues by month compared to the same months in prior years.
Table 3 - TOT Revenues for the First Six Months of FY 2025/26 (Accrual Basis) Month
2023/24
Actuals
2024/25
Actuals
2025/26
Actuals
$ Chg from
Prior Year
%
Chg
from
Prior
Year
July $ 1,618,463 $ 1,595,083 $ 1,627,402 $ 32,319 2.0%
August 1,524,459 1,624,084 1,559,889 (64,195) -4.2%
September 1,455,445 1,362,594 1,380,251 17,657 1.2%
October 1,212,844 1,331,460 1,319,760 (11,700) -1.0%
November 1,040,140 1,106,685 1,065,849 (40,836) -3.9%
December 884,200 902,455 23,185 (879,270) -99.4%
Total $ 7,735,552 $ 7,922,360 $ 6,976,336 $ (946,025) -12.2% 18/19 Baseline
$ Change $ 1,649,420 $ 1,836,228 $ 890,203
18/19 Baseline
% Change 27.1% 30.2% 14.6%
On an accrual basis, TOT revenues were down -12.2% or $(946,025) for the second quarter, at $7 million. These are the figures that were available at the time of reporting, which was before majority of the December receipts were due. December data will be presented at the next quarterly financial review. When comparing the total budget of $13.8 million, TOT is on target at approximately 50.6% of the total budget. Staff will continue to monitor TOT performance closely, but currently it is projected to meet estimates.
Short-Term Vacation Rentals (STVR)
On July 18, 2023, the City Council adopted updates to its STVR ordinance, which took effect August 18, 2023. Staff has been working with STVR hosting platforms, onboarding operators to the updated license and process, and tailoring city TOT/TBID remittance forms to STVR operators for ongoing reporting, timing of collection and remittance, and collecting DRAFT 263
Note: December figures are incomplete at the time of reporting and materially understate actual activity.
Full December data will be included in the final Q2 version.
Meeting Date: February 17, 2026
data. Finance staff will be working with consultants to assist with ongoing education and tax collection (including back tax) and reporting efforts.
The table below summarizes the STVR license activity at a point in time.
Table 4 – STVR License Data
STVR License Data (Status)
Total
(3/31/25)
Total
(5/20/25)
Total
(12/10/25)
Total
(12/31/25)
Active 33 38 44 33
Inactive/Expired 84 84 66 66
New/Pending 9 7 4 21
Revoked/Terminated/Suspended 3 0 4 0
Total 129 129 118 120
From July 1, 2025 – December 31, 2025, total STVR-generated TOT revenues were approximately $129,900, which is a -56.93% decrease when compared to the same period in the prior fiscal year.
Cannabis Business Tax
On November 6, 2018, the voters passed Measure Z2018, establishing a tax on cannabis business operations within the City of Goleta. The passing of this ballot measure subjects cannabis businesses to taxation on gross receipts of cannabis based on classifications up to a maximum of 10 percent. Initial rates were established when passing and codified as Chapter 3.08 into the Goleta Municipal Code. On December 5, 2023, the City Council approved Ordinance No. 23-12, which changed the medical cannabis retail rate from 0% to 5% and were effective in January 2024. The cannabis tax rates are seen in Table 5:
Table 5 – Cannabis Tax Rates
At the time of writing this report, the City of Goleta currently has eight (8) pending renewal licenses, with eight (8) operators reporting cannabis business tax revenues.
Cannabis Business Classification Activities Taxed Tax Rate Non-Medical Cannabis Retail Gross Receipts 5%
Medical Cannabis Retail*
*Effective January 2024, tax rate set at 5% Gross Receipts 5% Processing/Manufacturing Gross Receipts 2%
Cultivation Gross Receipts 4%
Distribution/Transport Gross Receipts 1%
Testing Gross Receipts 0%
Nurseries Gross Receipts 1%
Maximum Tax Limit Gross Receipts 10%
Maximum Cap for Multiple Operations Gross Receipts
DRAFT
10%
264
Meeting Date: February 17, 2026
Cannabis business tax payments are due quarterly by the end of the following month (e.g., July through September are due by October 30). Given the timing of when cannabis tax revenues are due, the current $141,521 reported in Attachment 1 reflects only cannabis tax revenues received through the middle of December. At the time of preparing this report, preliminary data shows that the City has now collected approximately $148,894 of cannabis tax revenue related to activity through the end of December. Actual amounts through the end of December will be reported during the Q3 financial review in May 2026.
Staff will continue to evaluate the cannabis tax activity and potential fiscal impacts as new operators begin to collect and remit taxes. Should revenues continue to fall short of estimates, the unassigned fund balance is available to serve as a revenue stabilizer and absorb the impact, followed by the contingency reserve.
Table 6 below summarizes the approved Cannabis Business License Operators as of the date preparing this report.
DRAFT 265
Meeting Date: February 17, 2026
Table 6 – Cannabis Business License Application Summary Currently, there are no new pending applicants that staff is aware of. Staff has been working with cannabis operators on the updated ordinance changes the City Council adopted on December 5, 2023, that went into effect in January 2024. As a recap, this ordinance changed the medical cannabis retail rate from zero percent of gross receipts to five percent of gross receipts. The ordinance further clarifies definitions, license types, and application processes and includes updated sections for a change in ownership and a change in premises. The ordinance further streamlines the application process, removing the social security card requirement and updating the criminal background check requirements. The ordinance also modifies the general liability insurance requirement to require $1 million per occurrence and $2 million per aggregate and changes the business hours of operations for both storefront retailers and non-storefront retailers (delivery) to now occur from 6:00 a.m. to 10:00 p.m. These updates gives current operators more flexibility in terms of their business operations and streamline some of the processes. # Status Business Application Name Location
Primary License
Type Other Uses or Notes
Paying
Tax?
1 No longer
operating
CalGreen
(Legal Non-Conforming)
164 Aero Camino Storefront Retail No
2 Renewal in
Process
Santa Barbara Care Center
(Legal Non-Conforming)
5814 Gaviota Street Microbusiness Storefront Retail
Cultivation
Distribution
Yes
3 Renewal in
Process
Green Rush Alliances LLC 6332 Lindmar Ave Manufacturing Distribution Yes 4 Renewal in
Process
Twisted Roots, Inc
(previously Sublime Processing, LLC)
123 Aero Camino Unit
A
Microbusiness Manufactuer
Distribution
Non-Storefront Retail (Delivery)
Yes
5 Renewal in
Process
Thornwood Distribution LLC 5756 Thornwood
Drive
Cultivation
(Processor)
Nursery Yes
6 Renewal in
Process
One Plant 290 Storke Road Storefront Retail Yes
7 No longer
operating
AGQ Green Nature 859 Ward Drive. Suite
103
Testing Testing facility only No
8 Renewal in
Process
Hollister Distribution, Inc. 5631 Calle Real Storefront Retail License issued, not operating yet
Yes
9 Renewal in
Process
Megan's Organic Market 5999 Hollister Storefront Retail License issued Yes 10 No longer
operating
Organic Greens Collective
(Legal Non-Conforming)
5902 Daley Street Storefront Retail No
11 Renewal in
Process
Firefly Delivery, LLC 5775 Dawson Ave Non-Store Front
Retail (Delivery)
Delivery only Yes
12 No longer
operating
Greenbridge Patient Collective 5940 Matthews St Microbusiness Distribution Manufacturing
Non-Storefront Retail
(Delivery)
No
13 No longer
operating
Ocean Grown Farms 176 Aero Camino Microbusiness Distribution Manufacuring
Non-Storefront Retail
(Delivery)
No
14 No longer
operating
HERBL 759 Ward Drive Distribution Went under receivership. No longer operating
No
15 No longer
operating
HERBL 839 Ward Drive Distribution Went under receivership. No longer operating
No
16 No longer
operating
HERBL 749 Ward Drive Distribution Went under receivership. No longer operating
No
DRAFT 266
Meeting Date: February 17, 2026
Franchise Fees
The City collects franchise fees from four main service provider sources (Cable, Electric, Gas, Solid Waste). Each provider of these services has a different payment schedule.
Electric and Gas providers make annual payments in April. The Cable provider is on a quarterly payment plan, while Solid Waste fees are collected monthly. Total franchise fees collected by the end of second quarter were $406,248 or 25.3% of the budget.
Licenses and Service Charges
This revenue category reflects the user fees (cost recovery) and charges as they relate to business license processing, planning and building permit fees, staff time charges related to development activity, and library management service charges. All revenue accounts were revised and updated to reflect anticipated activity for FY 2025/26. Table 7 summarizes the primary revenue accounts within the Licenses and Service Charges category.
Table 7 – Licenses and Service Charges Summary
Through the end of the second quarter, revenues were at $1.87 million and are tracking as expected against the current budget of $3.12 million at 59.9%. In comparison to the same period in the previous year, overall revenues are up by 27.4%, primarily due to an increase in administrative and staff time charges in Planning Deposits Earned and an increase in Building Permits received from The Housing Authority of the County of Santa Barbara.
Fines and Penalties
The City collects various fines and penalties related to traffic, parking, towing, and lost item fees related to the library. Overall receipts of $108,126 were at 53.7% of budget estimates of $201,500. In comparison to the same period last year, overall revenues are up by 28.2%.
Staff will continue to monitor activity levels.
Interest and Rent Income
Interest and rent income accounts for rental income from property owned by the City as well as investment earnings generated from the City’s investment program. Through the end of the second quarter, interest and rent income of $655,201 were at 63.8% of the total Prior Year
Year End Actuals
Qtr YTD
Actuals
Current
Budget
QTR YTD
Actuals
%
Realized
Qtr YTD
% Chg
Legal Deposits Earned $ - $ 37,050 $ 1,000 $ 0.0% -100.0% - Planning Fees 169,992 62,628 124,200 72.0% 42.9% 89,472 Planning Deposits Earned 283,247 73,628 217,800 131.2% 288.0% 285,676 Building Permits 492,122 244,273 1,170,000 1,007,529 86.1% 312.5% Public Works Deposits Earned 9,421 33,465 17,900 8,048 45.0% -14.6% PW/Engineering Fees 166,068 95,434 187,700 61,312 32.7% -35.8% Solid Waste Roll Off Fees 28,418 12,142 30,000 12,454 41.5% 2.6% Business License 306,016 140,791 302,500 146,438 48.4% 4.0% Plan Check Fees 795,341 670,229 923,000 119,810 13.0% -82.1% Other Licenses & Charges 150,475 121,460 145,460 138,403 95.1% 13.9% TOTAL 2,425,144 $ 1,467,056 $ 3,119,560 $ 1,869,141 $ 59.9% 27.4% Licenses and Service
Charges
FY 2024/25 FY 2025/26
DRAFT 267
Meeting Date: February 17, 2026
budget. In comparison to prior year for the same quarter, revenues were down -15.7% due to the timing of the Rent Income. Staff will continue to monitor activity levels.
Reimbursements
This revenue category consists primarily of staff time reimbursements (cost recovery) related to CIP projects and administrative or direct costs associated with the Redevelopment Successor Agency. It also includes claim reimbursements or other onetime miscellaneous reimbursements.
Staff working directly on eligible projects or programs supported by special revenue funds may charge their time to the project budgets, which in turn reimburses the General Fund.
The level of reimbursement varies annually depending on the use of contract services and overall project activity. When contract services are utilized, such as contract engineering services, those costs are paid directly from the CIP project budgets supported by the special revenue funds and, therefore, do not require General Fund reimbursement.
The revenues received through the end of the quarter totaled $447,868 and were at 114% of the total budgeted amount of $392,900. In comparison to the prior year for the same quarter, revenues increased by 81% or $54,968 due to an increase in staff time worked on capital improvement projects and an increase in claims reimbursement for the quarter. Staff will continue to monitor activity levels and submit a 3rd quarter appropriation if necessary.
Other Revenues
This category accounts for all other remaining General Fund revenue amounts such as Motor Vehicle License Late Fees (MVLF), Friends of the Library donations, one-time donations, and miscellaneous revenues. Revenues were at $99,625 by the end of the quarter or approximately 34.2% of the total budgeted amount of $291,000. In comparison to the prior year for the same quarter, revenues decreased by -30.5%. This is primarily due to the timing of the Library Friends donation of $175,000 to cover costs of upgraded furnishings for the Goleta Valley Library, Americans with Disabilities Act, Safety, and Building Improvements Project (9130).
Other Sources
This category accounts for other financing sources such as funds transferred in from other funds or other fund resources received from transactions such as sale of securities or cash received from loans or when bonds are issued. City staff utilize this category to account for funds transferred in for staff time spent in administering the Community Development Block Grants (CDBG) program. Other sources received through the end of the quarter were at
3.4% or $1,189 of the total budget amount of $34,685.
General Fund Expenditure Analysis:
The General Fund expenditures budget is currently at $78 million. Total expenditures through the second quarter should be about 50% of the budget, assuming the timing of expenditures is consistent throughout the year, with the exception that December services are typically paid in January or February when the invoice is received and paid. By the end DRAFT 268
Meeting Date: February 17, 2026
of the second quarter, total expenditures of $23.8 million were at 30.5% of the total budgeted amount. In comparison to prior year for the same quarter, expenditures were up
19.5%. Staff have reviewed their budgets and have determined there were various unanticipated costs experienced in the second quarter along with savings in others. Staff have reviewed their budgets and operations and are recommending various new appropriations and budget transfers described further below.
Table 8 summarizes the General Fund expenditure budget activity by department, which is followed by a brief discussion of the key expenditure variances and recommended yearend adjustments.
Table 8 - General Fund FY 2025/26 Expenditures through Q2 (December 31) All departments were within range of their overall allocated budgets as of December 31, 2025. Provided in Attachment 2 of this report is a “Budget to Actuals” comparison of the Department’s divisions and programs.
At this time, staff is recommending the following budget adjustments, which can be seen in further detail by line item in Attachment 5.
General Services:
Staff recommends a transfer of $50,000 from IT Reserves to Professional Services. This request is related to a variety of IT-related projects provided by the City's MSP, Acorn.
Projects in progress include Microsoft Teams Calling, Windows 11 Migration, and Corporate Yard Wireless Enhancement Project. The adopted budget only included funds for monthly IT base services and not additional labor hours for projects.
Public Works:
Staff recommends $68,598 in Maintenance-Pavement Rehab for utility reimbursement costs associated with the 2023 Pavement Project. The corresponding reimbursement revenue was received in December 2025.
Neighborhood Services – Goleta Library:
Prior Year
Year End Actuals
Qtr YTD
Actuals
Current
Budget
QTR YTD
Actuals
%
Realized
Qtr YTD
% Chg
General Government $ 6,965,331 $ 3,234,078 $ 7,369,062 $ 3,404,569 46.2% 5.3% General Services 3,330,193 1,685,285 4,525,953 2,126,060 47.0% 26.2% Library 728,431 266,342 800,569 271,343 33.9% 1.9%
Finance 1,904,988 861,102 2,164,400 915,638 42.3% 6.3%
Planning & Env. Review 4,964,490 2,115,722 5,931,004 2,190,879 36.9% 3.6% Public Works 10,364,439 4,662,028 21,704,010 8,925,802 41.1% 91.5% Neighborhood Services 2,780,345 1,281,094 3,383,250 1,469,407 43.4% 14.7% Public Safety 11,501,844 4,884,826 12,564,100 3,114,572 24.8% -36.2% Non-Departmental 1,028,564 37,989 1,807,500 983,562 54.4% 2489.1% Capital Improvement Projects 2,824,112 922,604 17,792,054 434,744 2.4% -52.9% Total Expenditures $ 46,392,738 $ 19,951,069 $ 78,041,902 $ 23,836,576 30.5% 19.5% Expenditures
FY 2024/25 FY 2025/26
DRAFT 269
Meeting Date: February 17, 2026
Staff recommends an increase of $1,000 in Books and Subscriptions for the donation from Allison Turkish for children’s items at the Goleta Library.
General Fund - Fund Balance and Reserves:
Table 9 provides a recap of the General Fund balance as of June 30, 2025, and the revised estimated fund balance as of June 30, 2026. These estimates have been updated to reflect final actual FY 2024/25 revenues and expenditures, as well as final carryover amounts.
Carryovers are reflected in the “CIP Project Funding (Prior Year)” and “Encumbrances” categories in the table below. In addition, reserve categories have been updated to policy levels consistent with the adopted FY 2025/26 budget.
Table 9 – General Fund FY 2025/26 – Estimated Fund Balance and Reserves As shown above, the revised estimate of the total fund balance for FY 2025/26 is projected to be $26.4 million as of June 30, 2026. This figure includes all city fund balance categories.
After incorporating final carryover amounts and recommended Q2 budget adjustments, the unassigned fund balance, which is not earmarked for any specific purpose, is projected at $911,516 at June 30, 2026, with an additional $7.07 million reserved for Shelby Litigation and high-priority must-do CIP projects listed in Table 10 further below.
Classification
FY 2024/25
Ending Fund Balance Increase Decrease
FY 2025/26
Est. Ending Fund
Balance
Recommended
Budget/Reserve
Adjustments
FY 2025/26
Revised Est.
Ending Fund
Balance
Prepaids and Deposit $ 109,384 $ (109,384) - $ - $ -
City Hall Solar Removal 94,500 (94,500) - $ -
Public Facilities/Building
Maintenance 1,000,667 (148,005) 852,662 $ 852,662
Capital Equipment 866,245 (270,000) 596,245 $ 596,245
Compensated Leave 541,116 196,357 737,473 $ 737,473
Risk Management 200,000 200,000 $ 200,000
Litigation Defense Fund 600,000 (200,000) 400,000 $ 400,000 Contingency 13,981,390 1,096,498 15,077,888 $ 15,077,888 Allowance for Doubtful Accounts - 300,000 300,000 $ 300,000 OPEB UAL - 300,000 (300,000) - $ -
CalPERS Pension UAL - 100,000 (100,000) - $ -
Sheriff's Contract 150,000 (150,000) - $ -
CIP Project Funding (Next Year) 2,373,700 (2,373,700) - $ - IT Reserve 166,574 166,574 (50,000) $ 116,574
CIP Project Funding (Prior Year) 15,229,089 (133,740) (15,095,349) - $ - Encumbrances 8,031,800 60,153 (8,091,953) - $ -
FMV Adjustment 148,220 148,220 $ 148,220
Unassigned Fund Balance -
Adjustment for FY 24/25 7,072,700 7,072,700 $ 7,072,700 Unassigned Fund Balance 9,491,148 (8,579,632) 911,516 - $ 911,516 Total Fund Balance $ 52,983,833 $ 8,991,967 $ (35,512,524) $ 26,463,277 $ (50,000) $ 26,413,277 DRAFT 270
Meeting Date: February 17, 2026
Table 10 – Priority CIP Projects (“The Big Six”)
Project # Project Total Project
Cost Unfunded Project Phase Funding Strategy
9002 / 9033 Project Connect $107.8 million $0 Construction 9079 Goleta Train Depot $32 million $0 Construction
9130 Goleta Valley Library
Building, Safety, and
ADA Improvement
Project
$7.5 million $330,000 Final Design Pay-go from General Fund, Library Special Funds, and
Eligible DIF's
9006 San Jose Creek
Multipurpose Path $48.6 million $0 Bidding
9053 Cathedral Oaks Crib
Wall Repair $19 million $0 Final Design
9117
San Jose Creek Fish
Passage Modification
Project
$7.3 million $5.7 million Final Design
Pending grant of 3.75
million. Pay-go from
General Fund and interfund
borrowing.
Total $222.8 million $6.03 million
Project cost information is from June 16, 2025, Two-Year Budget The unassigned fund balance consists of one-time funds that are essential for:
• Ensuring economic stability in case of revenue shortfalls, • Managing liquidity and cash flow needs
• Addressing various unanticipated one-time expenditures • Meeting other priority needs as they arise.
Maintaining an adequate unassigned fund balance is vital for the city’s fiscal health, as it also supports creditworthiness and offers a financial cushion against unforeseen one-time expenses or immediate revenue shortfalls. The City has utilized this balance when unanticipated additional appropriations are needed for capital projects or major projects, and will be essential to maintain this balance
Revenue Neutrality Agreement (RNA):
The receipts and payments as a result of the RNA are not included in the budget. Under the RNA Agreement, the County is allocated 30% of the 1% Sales Tax revenues generated within the City of Goleta and shares equally in the Property Tax revenues of the City. The estimated cost for FY 2025/26 of the total RNA payments is $8.17 million. The estimated total contribution since City incorporation in 2002 is approximately $168 million through the end of FY 2025/26.
Capital Improvement Program and Other Funds:
Staff has provided Attachment 3 to summarize all other Special Revenue Fund revenues and expenditures with budget-to-actual comparison. On a budget basis, the various granttype funds are balanced with revenues matching expenditures. However, on an actual basis, funds are reimbursed after they are expended. The reimbursement requests for grant expenditures are submitted either on a monthly or quarterly basis by the department staff responsible for the project reimbursements. Any negative balances are due to the timing of revenues being received by the City. Revenue projections are reviewed on a quarterly basis DRAFT 271
Meeting Date: February 17, 2026
and recommended adjustments are made when necessary. The Other Funds section below briefly describes the financial activity through the quarter. Attachment 4 provides a CIP Expenditure Summary on a budget to actual basis to ensure that projects do not exceed the appropriations allocated to the project.
Other Funds:
Gas Tax Fund (Fund 201)
The state imposes sales taxes and per-gallon excise taxes on gasoline and diesel fuel. The local portion of these allocation flows through the Highway Users Tax Account (HUTA).
State law requires that these funds be used exclusively for maintenance of the street and highway system. Gas tax revenues through the end of the quarter are at $396,112 or 42.9% of the $922,360 revenue budget amount. Budgeted expenditures are programmed at $1.15 million for the fiscal year and actual expenditures were at $1.1 million or 103.5% of budget.
Staff is not recommending an adjustment at this time and will continue to monitor the account.
SB1 Road Maintenance & Repair Act (RMRA) (Fund 203)
Senate Bill 1 (SB 1) – Road Repair and Accountability Act of 2017 has been in effect since November 1, 2017. Revenues are generated from fuel and vehicle registration taxes. State law requires these funds to be used exclusively for the transportation system. SB 1 revenues through the end of the quarter are at $309,600 or 35% of the $884,571 revenue budget amount. Budgeted expenditures are programmed at $1.2 million. Through the end of the quarter $1.2 million or 100% of budget has been expended. All budget is programmed towards the City’s pavement rehabilitation program. Staff is not recommending an adjustment at this time and will continue to monitor the account.
Measure A Fund (Fund 205)
The Santa Barbara County Association of Governments (SBCAG) receives a half-cent sales tax for transportation improvements in Santa Barbara County. The City of Goleta receives a portion of those funds to use exclusively for transportation related purposes.
Measure A revenues through the end of the quarter are at $1.2 million or 51.8% of the $2.3 million revenue budget amount. Budgeted expenditures are programmed at $6.3 million.
Through the end of the quarter, $3.6 million or 56.8% of the budget have either been expended or encumbered.
Lease Revenue Bonds and Sales Tax Revenue Bonds – Update:
On March 12, 2025, the City of Goleta successfully closed on two bond financings through the Goleta Facilities Financing Authority to advance key capital improvement projects:
• $18.735 million in Lease Revenue Bonds, Series 2025A, with true interest cost of
3.97%, and
• $14.655 million in Local Measure A Transportation Sales Tax Revenue Bonds, Series 2025, with true interest cost of 3.32%.
DRAFT 272
Meeting Date: February 17, 2026
Together, these bond financings provide approximately $35.7 million in total proceeds, net of issuance costs, to support shovel-ready infrastructure and transportation priorities.
These were the City’s first rated bond issuances, receiving strong market interest and high credit ratings from S&P Global Ratings:
• ‘AA’ rating for the Lease Revenue Bonds (implying a general credit rating of ‘AA+’), and
• ‘A+’ rating for the Sales Tax Revenue Bonds.
These ratings reflect the City’s strong financial management, healthy reserves, and conservative debt profile. Bond proceeds have been deposited into dedicated project funds held with the trustee. Below is a summary of project activity funded by these bond proceeds.
Project Connect
The project is currently under construction. The Hollister Avenue Bridge has been completed, and crews are now working on roadway improvements along Hollister Avenue between Kellogg Avenue and Ward Drive. Work in the San Jose Creek channel will begin in spring 2026. On Ekwill Street, roadway, landscape, and drainage improvements are ongoing. Construction on Fowler Road is expected to begin in spring 2026.
San Jose Creek Multipurpose Path
The Project has begun construction. This initial work is comprised of tree removals and various other clearing and grubbing work. Once this initial work is completed, work shall then be suspended temporarily until March in order to coordinate project timing with Caltrans’ 217 bridge project.
Cathedral Oaks Road and Crib Wall
The project has achieved 90% design, and a final design is expected to be completed in Spring 2026. An RFP for construction management has concluded. The construction management and construction contracts for the project are expected to be awarded Summer 2026.
FIFA World Cup updates:
On January 20, 2026, entered a FIFA World Cup 2026TM base camp host city agreement, along with approving a $50,000 General Fund appropriation. At the time of writing this report, project accounting codes have been created but there are no further updates. Staff will continue to monitor the status and provide quarterly updates as necessary.
Recommended Budget Amendments – Special Revenue Funds:
DRAFT 273
Meeting Date: February 17, 2026
Staff is recommending various expenditure budget adjustments for other various Special Revenue Funds. Additional details and corresponding revenue adjustment (if applicable) are found in Attachment 5 – Exhibit A.
FINANCE COMMITTEE REVIEW:
The Finance Committee met to review the Fiscal Year 2025/26 Second Quarter Financial Review Report on February 9, 2026.
FISCAL IMPACTS:
General Fund
The recommended adjustments result in an increase of $69,598 in General Fund revenues and an increase of $119,598 in General Fund expenditures. The combined impact is a net decrease of $(50,000) to the General Fund’s total fund balance.
After incorporating these adjustments, the revised ending fund balance for FY 2025/26 is projected at $26.4 million. This includes an unassigned fund balance of approximately $911,516, along with $7.07 million reserved for Shelby housing project settlement and for the unfunded portions of priority “Big Six” Capital Improvement Projects. These unfunded portions include $330,000 for Goleta Valley Library Building, Safety, and ADA Improvement Project (Project No. 9130) and $5.7 million needed for the San Jose Creek Fish Passage Modification Project (Project No. 9117).
Additional details of the accounts affected by the recommended General Fund budget adjustments can be found in Exhibit A, which is part of Attachment 5.
Other Funds
Recommended amendments to Other Special Revenue Funds that were described above can be found in detail in Attachment 5 - Exhibit A. Council is asked to adopt the attached resolution (Attachment 5) approving the recommended budget adjustments.
City’s Cash Flow and Position:
The City’s Finance Department monitors its cash flow and position daily. The cash funds are pooled and are considered very liquid, as most of its funds are invested in overnight pooled investment accounts such as LAIF or its money market account. The City’s special revenue accounts have committed fund balance that is pooled all together with the General Fund. When pooled all together, the City’s cash position on December 31st was about $58 million.
ALTERNATIVES:
Council may elect not to adopt the attached resolution, thereby leaving the budget as previously approved; however, certain budget recommendations are necessary to meet obligations and financial reporting requirements.
DRAFT 274
Meeting Date: February 17, 2026
LEGAL REVIEW BY: Isaac Rosen, City Attorney
APPROVED BY: Robert Nisbet, City Manager
ATTACHMENTS:
1. General Fund Statement of Revenues and Expenditures Budget to Actual Comparison
2. General Fund Interim Statement of Revenues and Expenditures by Department and Program Budget to Actual Comparison
3. Interim Statement of Revenues and Expenditures - Summary by Fund
4. Capital Improvement Program (CIP) Expenditure Summary
5. Resolution No. 26-__ entitled, “A Resolution of the City Council of the City of Goleta, California, Amending the City of Goleta Operating and CIP Budget for Fiscal Year 2025/26.”
6. Fiscal Year 2025/26 Second Quarter Financial Review Presentation DRAFT 275
ATTACHMENT 1
General Fund Statement of Revenue and Expenditures Budget to Actual Comparison
DRAFT 276
Attachment 1
Property Taxes $ 10,296,800 $ 10,296,800 - $ $ 2,484,727 24% $ 10,296,800 - $ Sales Taxes 8,806,000 8,806,000 - 3,301,499 37% - 8,806,000 Transaction and Use Tax 11,300,000 11,300,000 - 5,713,262 51% 11,300,000 - Transient Occupancy Tax (1) 13,800,000 13,800,000 - 6,133,974 44% 13,800,000 - Cannabis Tax 650,000 - 650,000 141,521 22% - 650,000
Franchise Fee 1,602,700 1,602,700 - 406,248 25% - 1,602,700 License & Service Charges 3,119,560 3,119,560 - 1,869,141 60% - 3,119,560 Fines & Penalties 201,500 - 201,500 108,126 54% - 201,500 Interest & Rent Income 1,044,200 (18,000) 1,026,200 655,201 64% - 1,026,200 Reimbursements 392,900 - 392,900 447,868 114% 68,598 461,498 Other Revenues 116,000 175,000 291,000 99,625 34% 1,000 292,000 Other Sources 34,685 - 34,685 1,189 3% - 34,685
Total Revenues $ 51,364,345 $ 157,000 $ 51,521,345 $ 21,362,381 41% $ 69,598 $ 51,590,943 General Government $ 7,158,500 $ 210,562 $ 7,369,062 $ 3,404,569 46% $ - $ 7,369,062 General Services 4,029,500 496,453 4,525,953 2,126,060 47% 50,000 4,575,953 Library 419,494 381,074 800,569 271,343 34% 1,000 801,569 Finance 2,164,400 2,164,400 915,638 - 42% - 2,164,400Planning & Env. Review 5,781,450 149,554 5,931,004 2,190,879 37% - 5,931,004 Public Works 14,366,500 7,337,510 21,704,010 8,925,802 41% 68,598 21,772,608 Neighborhood Services 3,383,250 3,383,250 1,469,407 - 43% - 3,383,250 Public Safety 12,564,100 12,564,100 3,114,572 - 25% 12,564,100 -Non-Departmental 1,293,100 514,400 1,807,500 983,562 54% - 1,807,500 Capital Improvement Projects 2,373,700 15,418,354 17,792,054 434,744 2% 17,792,054 - Total Expenditures $ 53,533,994 $ 24,507,907 $ 78,041,902 $ 23,836,576 31% $ 119,598 $ 78,161,499Net Change in Fund Balance $ (2,169,649) $ (24,350,907) $ (26,520,557) $ (2,474,195) $ (50,000) $ (26,570,557) Beginning Fund Balance 52,983,833 $ 52,983,833 $ 52,983,833 $ 52,983,833 $ Ending Fund Balance 50,814,184 $ 26,463,277 $ 50,509,638 $ 26,413,277 $ Expenditures Original Budget Prior Revisions Current Budget % of Budget Amended Budget 12/31/2025 Actuals Recommended Revisions General Fund Statement of Revenue and Expenditures
City of Goleta
Amended Budget Recommended Revisions Original Budget Prior Revisions Current Budget 12/31/2025 Actuals % of Budget Budget to Actual Comparison
For the Quarter Ended December 31, 2025
Revenues