SUSTAINABILITY IMPACT:
Bottle filling stations in parks support the City’s sustainability goals and provide a convenient way for park users to refill personal hydration containers, lending an alternative to single-serve plastic water bottles. The environmental benefit of reducing plastic water bottle use helps with overall efforts to minimize waste.
PREPARED BY: Tina Nelson, Business Manager
SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: City Administrator's Office
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 22-059,
ADOPTING THE BUDGET FOR FISCAL YEAR 2023, TO
INCREASE REVENUE AND EXPENDITURE
APPROPRIATIONS BY $20,000 IN THE PARKS AND
RECREATION DEPARTMENT FISCAL YEAR 2023
MISCELLANEOUS GRANTS FUND FOR INSTALLATION
OF BOTTLE FILLING STATIONS IN STEVENS PARK AND
OAK PARK
WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2023; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2023;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 22-059, this Resolution approves the amendment to the budget as provided herein.
NOW, THEREFORE, be it resolved by the Council of the City of Santa Barbara that in accordance with the provisions of Section 1205 of the City Charter, the budget for the fiscal year 2023, as adopted by Resolution No. 22-059, is hereby amended as follows:
1. The Council approves of the increase in revenue and expenditure appropriation of $20,000 in the Fiscal Year 2023 Parks and Recreation Miscellaneous Grants Fund budget.
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: September 27, 2022
TO: Mayor and Councilmembers
FROM: Accounting Division, Finance Department
SUBJECT: Fiscal Year 2022 Fourth Quarter Review
RECOMMENDATION: That Council:
A. Receive a report from staff on the status of revenues and expenditures in relation to the budget for the twelve months ended June 30, 2022; B. Accept the Fiscal Year 2022 Interim Financial Statements for the twelve months ended June 30, 2022; and
C. Approve the proposed fourth quarter adjustments to Fiscal Year 2022 revenue and expenditure appropriations as detailed in the attached schedule of proposed Fourth Quarter adjustments.
DISCUSSION:
Each month, staff presents the interim financial statements (Attachment 1) showing the status of revenues and expenditures in relation to budget for each of the City’s Funds.
Each quarter, the interim financial statements are expanded to include a detailed narrative analysis of the General Fund and Enterprise Funds. This narrative analysis is included in Attachment 2.
In addition to the fourth quarter budget analysis, staff brings forward recommended revenue and expenditure budget adjustments for City Council approval. These adjustments are the result of new information and/or unanticipated events that occurred since the adoption of the budget in June 2021. A listing and description of each proposed adjustment to the current year budget is provided in Attachment 3.
Staff implemented a fourth quarter review process to review revenue and expenditure line items to assess any material changes that may occur during the fiscal year. For General Funded departments, staff reviewed their operating budget reduction targets and confirmed specific plans were implemented to meet these targets. This approach to identify and confirm specific budget reduction line items provided the best ability for staff Agenda Item No. 7
File Code No. 230.05
Council Agenda Report
Fiscal Year 2022 Fourth Quarter Review
September 27, 2022
to ensure required cost savings were met to achieve a balance budget by the end of the fiscal year.
The table below summarizes the General Fund revenue and expenditure budget including actuals through the fourth quarter. The total adopted revenue budget is $168.5 Million, and the total adopted expenditure budget is $169.5 Million resulting an operating deficit of $1 Million. The revised budget includes additional expenditures from encumbrances from prior year contractual commitments.
General Fund
(in $ Millions)
FY2022
Adopted
Budget
FY2022
Revised
Budget
Q4
Actuals
Q4 Actuals
Percent of
Revised
Budget
Revenues $168.5 $180.8 $196.0 108.4%
Expenditures 169.5 186.7 181.4 97.2%
Surplus/(Deficit) ($1.0) ($5.9) $14.6
50% Surplus to Capital (7.3)
Revised Surplus/(Deficit) $7.3
Continued economic recovery occurred through the end of FY2022 that resulted in additional sales tax and transient occupancy tax revenues compared to last fiscal year.
General fund departments implemented the $6.8 Million of expenditure reduction targets included in the adopted budget, and many departments realized additional expenditure savings primarily from additional salary and fringe savings due to additional vacant positions.
Overall, staff is projecting an operating surplus in the General Fund of $14.6 Million. City Council Resolution 12-066 requires that 50% of the year-end surplus be transferred to the capital fund to implement priority capital projects; therefore, the revised projected surplus for the General Fund is $7.3 Million. Although this surplus replenishes General Fund reserves, the FY2023 adopted budget called for the use of $1 Million in order to balance the budget, which results in projected reserves being below policy targets by the end of FY2023.
Staff is not recommending any additional budget actions at this time in order to balance the budget by fiscal year end; furthermore, staff will continue to closely monitor revenues and expenditures each month and provide a comprehensive financial projection during the future reports. Also, staff will continue to monitor fund balance and reserve implications due to any additional economic changes and present potential impacts in the future reports.
Council Agenda Report
Fiscal Year 2022 Fourth Quarter Review
September 27, 2022
ATTACHMENTS: 1. Summary by Fund Statement of Revenues and Expenditures for the Twelve Months Ended June 30, 2022
2. Interim Financial Statements for the Twelve Months Ended June 30, 2022 (Narrative Analysis)
3. Schedule of Proposed Fourth Quarter Adjustments
PREPARED BY: Doug Smith, Accounting Manager
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
ATTACHMENT 1
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
GENERAL FUND (pages 3-7)
Revenue 180,792,970 195,992,699 3,005 (15,196,724) 108.4% 172,555,237 Expenditures 186,708,820 175,549,973 1,759,578 9,399,270 95.0% 165,468,209 Addition to / (use of) reserves (5,915,850) 20,442,726 (1,762,582) 7,087,028 SOLID WASTE FUND (page 9)
Revenue 32,782,443 33,930,892 - (1,148,449) 103.5% 29,882,454 Expenditures 31,898,579 29,816,546 324,062 1,757,970 94.5% 27,919,994 Addition to / (use of) reserves 883,865 4,114,347 (324,062) 1,962,460 WATER OPERATING FUND (page 10)
Revenue 75,171,571 78,582,151 - (3,410,581) 104.5% 64,048,692 Expenditures 72,560,119 66,416,925 1,670,845 4,472,349 93.8% 57,448,395 Addition to / (use of) reserves 2,611,451 12,165,226 (1,670,845) 6,600,297 WASTEWATER OPERATING FUND (page 11)
Revenue 25,771,201 25,910,883 - (139,681) 100.5% 24,734,273 Expenditures 26,493,686 25,201,267 519,009 773,410 97.1% 21,648,097 Addition to / (use of) reserves (722,485) 709,616 (519,009) 3,086,176 DOWNTOWN PARKING FUND (page 12)
Revenue 9,441,517 8,475,672 - 965,845 89.8% 5,142,225
Expenditures 8,807,956 8,048,166 101,332 658,457 92.5% 8,093,607 Addition to / (use of) reserves 633,562 427,506 (101,332) (2,951,383) AIRPORT OPERATING FUND (page 13)
Revenue 27,612,095 30,280,673 - (2,668,578) 109.7% 28,756,892 Expenditures 31,535,748 27,226,349 1,123,686 3,185,713 89.9% 23,531,801 Addition to / (use of) reserves (3,923,653) 3,054,324 (1,123,686) 5,225,091 GOLF COURSE FUND (page 14)
Revenue 3,643,209 4,198,344 - (555,135) 115.2% 4,094,479 Expenditures 3,365,685 3,257,816 - 107,869 96.8% 3,101,527 Addition to / (use of) reserves 277,524 940,528 - 992,952 FACILITIES MANAGEMENT FUND (page 15)
Revenue 6,877,709 6,423,132 - 454,577 93.4% 6,656,129
Expenditures 7,503,317 6,606,666 10,246 886,404 88.2% 6,834,128 Addition to / (use of) reserves (625,608) (183,535) (10,246) (177,999)
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year) FLEET REPLACEMENT FUND (page 16)
Revenue 3,624,652 3,685,318 - (60,666) 101.7% 3,761,344 Expenditures 6,866,417 3,402,117 682,647 2,781,653 59.5% 2,118,916 Addition to / (use of) reserves (3,241,765) 283,201 (682,647) 1,642,428 FLEET MAINTENANCE FUND (page 17)
Revenue 3,017,649 3,019,766 - (2,117) 100.1% 2,944,512
Expenditures 3,222,975 3,093,671 61,743 67,562 97.9% 2,708,238 Addition to / (use of) reserves (205,326) (73,905) (61,743) 236,274 SELF INSURANCE TRUST FUND (page 18)
Revenue 10,416,087 10,348,667 - 67,420 99.4% 14,851,214 Expenditures 11,348,101 11,604,082 45,793 (301,774) 102.7% 11,879,635 Addition to / (use of) reserves (932,014) (1,255,415) (45,793) 2,971,578 INFORMATION TECHNOLOGY FUND (page 19)
Revenue 4,562,225 4,562,222 - 3 100.0% 3,840,831
Expenditures 4,680,814 4,445,817 25,429 209,568 95.5% 3,736,678 Addition to / (use of) reserves (118,590) 116,405 (25,429) 104,153 WATERFRONT OPERATING FUND (page 20)
Revenue 15,787,604 17,814,379 - (2,026,775) 112.8% 15,764,403 Expenditures 16,322,915 15,015,686 275,191 1,032,039 93.7% 14,747,702 Addition to / (use of) reserves (535,310) 2,798,694 (275,191) 1,016,701 SANTA BARBARA CLEAN ENERGY FUND (page 21)
Revenue 12,526,007 16,312,014 - (3,786,007) 130.2% 679,503 Expenditures 10,224,917 15,548,593 175,333 (5,499,009) 153.8% 453,815 Addition to / (use of) reserves 2,301,090 763,421 (175,333) 225,688 ENERGY AND CLIMATE MANAGEMENT FUND (page 22)
Revenue 2,565,236 2,550,238 - 14,999 99.4% 2,384,354
Expenditures 2,811,726 2,201,540 256,099 354,087 87.4% 2,168,492 Addition to / (use of) reserves (246,490) 348,697 (256,099) 215,862
TOTAL FOR ALL FUNDS
Revenue 414,592,177 442,087,050 3,005 (27,491,869) 106.6% 380,096,542 Expenditures 424,351,775 397,435,214 7,030,991 19,885,569 95.3% 351,859,235 Addition to / (use of) reserves (9,759,599) 44,651,836 (7,033,996) 28,237,307 ** It is City policy to adopt a balanced budget. In most cases, encumbrance balances exist at year-end. These encumbrance balances are obligations of each fund and must be reported at the beginning of each fiscal year. In addition, a corresponding appropriations entry must be made in order to accommodate the 'carried-over' encumbrance amount. Most differences between budgeted annual revenues and expenses are due to these encumbrance carryovers.
Revised YTD Remaining Percent Previous Change Over
Budget Actual Balance Received YTD Prior Year
TAXES
Sales and Use 23,239,045 28,503,731 (5,264,686) 122.7% 24,349,865 17.1% Measure C Sales Tax 24,988,418 30,824,430 (5,836,012) 123.4% 25,420,407 21.3% Property Taxes 42,347,386 42,225,898 121,488 99.7% 40,154,409 5.2% Utility Users Tax 7,315,292 7,804,880 (489,588) 106.7% 7,336,944 6.4% Transient Occupancy Tax 19,500,000 26,628,111 (7,128,111) 136.6% 15,671,049 69.9% Business License 2,556,359 2,653,092 (96,733) 103.8% 2,542,827 4.3% Cannabis Excise Tax 1,847,469 1,672,274 175,195 90.5% 1,920,298 -12.9% Real Property Transfer Tax 923,776 1,352,652 (428,876) 146.4% 1,144,357 18.2% Total Tax Revenues 122,717,745 141,665,065 (18,947,320) 115.4% 118,540,155 19.5%
LICENSES & PERMITS
Licenses & Permits 151,666 215,977 (64,311) 142.4% 191,685 12.7% Total 151,666 215,977 (64,311) 142.4% 191,685 12.7%
FINES & FORFEITURES
Police 2,348,505 2,136,649 211,856 91.0% 1,481,634 44.2% Other Fines & Forfeitures 665,602 100,822 564,780 15.1% 62,719 60.8% Total 3,014,107 2,237,471 776,636 74.2% 1,544,352 44.9%
USE OF MONEY & PROPERTY
Investment Income 312,661 550,120 (237,459) 175.9% 429,435 28.1% Rents & Concessions 1,008,355 1,064,850 (56,495) 105.6% 494,143 115.5% Total 1,321,016 1,614,970 (293,954) 122.3% 923,578 74.9%
INTERGOVERNMENTAL
Library 1,139,127 1,162,393 (23,266) 102.0% 1,221,490 -4.8% Fire 1,628,000 2,328,194 (700,194) 143.0% 2,812,198 -17.2% Other Intergovernmental 11,976,119 6,196,431 5,779,688 51.7% 13,092,712 -52.7% Total 14,743,246 9,687,019 5,056,228 65.7% 17,126,401 -43.4%
FEES & SERVICE CHARGES
Community Development 5,755,380 7,147,983 (1,392,603) 124.2% 5,686,672 25.7% Parks & Recreation 3,351,794 3,527,320 (175,526) 105.2% 1,954,511 80.5% Other Service Charges 3,896,007 3,495,326 400,681 89.7% 3,027,958 15.4% Total 13,003,181 14,170,629 (1,167,448) 109.0% 10,669,142 32.8%
OTHER REVENUES
Interfund Charges & Reimbursement 11,001,907 10,399,492 602,415 94.5% 9,670,017 7.5% Overhead Indirect Allocations 9,025,888 8,987,059 38,829 99.6% 8,615,290 4.3% Interfund Transfers 1,810,843 1,795,153 15,690 99.1% 976,073 83.9% Interfund Loans 24,140 24,140 (0) 100.0% 24,140 0.0%
Miscellenous 132,692 887,988 (755,296) 669.2% 300,655 195.4% Donations 139,709 131,647 8,062 94.2% 121,774 8.1%
Franchise Fees 3,706,830 4,176,090 (469,260) 112.7% 3,851,974 8.4% Total 25,842,009 26,401,568 (559,559) 102.2% 23,559,923 12.1% Subtotal Non-Tax Revenues 58,075,225 54,327,633 3,747,592 93.5% 54,015,081 0.6% TOTAL REVENUES 180,792,970 195,992,699 (15,199,729) 108.4% 172,555,237 13.6%
CITY OF SANTA BARBARA
General Fund
Interim Statement of Budgeted and Actual Revenues
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD
GENERAL GOVERNMENT
Mayor & City Council
MAYOR & CITY COUNCIL 978,866 885,948 - 92,918 90.5% 837,471 ARTS AND COMMUNITY PROMOTIONS 2,633,806 2,583,096 47,568 3,142 99.9% 2,545,147 Total 3,612,672 3,469,044 47,568 96,059 97.3% 3,382,617 City Attorney
CITY ATTORNEY-ADMINISTRATION 1,532,833 1,164,605 63,769 304,459 80.1% 912,159 CITY ATTORNEY-ADVISORY 1,429,876 1,424,837 - 5,039 99.6% 1,278,162 CITY ATTORNEY-CIVIL LITIGATION 1,243,891 1,093,785 - 150,106 87.9% 1,118,656 CITY ATTORNEY-CODE ENFORCEMENT 457,763 445,103 - 12,660 97.2% 417,392 Total 4,664,363 4,128,330 63,769 472,264 89.9% 3,726,368 Administration
CITY ADMINISTRATOR 3,037,829 2,381,044 55,545 601,240 80.2% 1,958,255 EMPLOYEE RELATIONS 342,030 241,756 65,626 34,647 89.9% 261,297 CITY TV 761,533 608,645 200,654 (47,766) 106.3% 515,305 CITY CLERK 1,080,178 1,030,931 - 49,247 95.4% 558,259
ELECTIONS - - - - 0.0% 63,118
Total 5,221,570 4,262,377 321,825 637,368 87.8% 3,356,234 Human Resources
HUMAN RESOURCES 2,956,625 1,910,528 24,669 1,021,428 65.5% 1,534,571 EMPLOYEE DEVELOPMENT 43,447 26,843 - 16,604 61.8% 25,974 Total 3,000,072 1,937,371 24,669 1,038,031 65.4% 1,560,545 Finance
ADMINISTRATION 477,625 393,215 18,704 65,706 86.2% 312,024 REVENUE & CASH MANAGEMENT 554,826 535,938 7,865 11,023 98.0% 495,703 CASHIERING & COLLECTION 623,633 560,844 - 62,788 89.9% 517,253 LICENSES & PERMITS 570,184 459,655 2,942 107,587 81.1% 425,187 BUDGET MANAGEMENT 625,621 624,654 - 967 99.8% 499,638
ACCOUNTING 1,038,067 899,498 42,957 95,612 90.8% 952,365 PAYROLL 479,667 487,956 - (8,289) 101.7% 415,844
ACCOUNTS PAYABLE 263,358 269,474 - (6,116) 102.3% 245,654 CITY BILLING & CUSTOMER SERVICE 783,529 701,557 - 81,971 89.5% 637,107 PURCHASING 884,495 824,308 - 60,187 93.2% 826,384
CENTRAL WAREHOUSE 237,002 233,852 - 3,150 98.7% 206,928 MAIL SERVICES 150,243 148,774 8,511 (7,043) 104.7% 145,425 Total 6,688,248 6,139,726 80,979 467,543 93.0% 5,679,512 TOTAL GENERAL GOVERNMENT 23,186,924 19,936,849 538,810 2,711,265 88.3% 17,705,276
CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD
CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
PUBLIC SAFETY
Police
CHIEF'S STAFF 1,027,298 1,712,628 5,721 (691,050) 167.3% 1,106,363 BUSINESS OFFICE 738,813 605,453 1,302 132,059 82.1% 562,313 RECORDS BUREAU 1,989,374 1,638,007 - 351,367 82.3% 1,691,957 STRATEGIC OPERATIONS AND PERSONNEL 1,822,393 2,030,437 15,161 (223,205) 112.2% 2,011,989 PROPERTY ROOM 269,180 240,907 - 28,273 89.5% 248,205
TRAINING, RECRUITMENT AND WELLNESS 1,767,042 1,685,310 48,636 33,095 98.1% 1,132,521 RANGE AND EQUIPMENT 1,527,771 1,509,354 12,170 6,247 99.6% 1,303,051 COMMUNITY & MEDIA RELATIONS 342,196 260,652 - 81,544 76.2% 343,395 INFORMATION TECHNOLOGY/CRIME ANALYSIS 1,722,377 1,712,309 17,154 (7,086) 100.4% 1,575,488 CRIMINAL INVESTIGATIONS & INTERNAL OP'S 5,195,839 5,576,253 22,613 (403,027) 107.8% 5,784,990 CRIME LAB 164,677 158,178 - 6,500 96.1% 159,083
FIELD OPERATIONS DIVISION 20,676,573 19,749,368 2,300 924,906 95.5% 17,881,264 TRAFFIC 692,407 1,008,697 - (316,289) 145.7% 654,500
SPECIAL EVENTS 490,804 651,071 544 (160,810) 132.8% 201,021 STREET CRIMES UNIT 2,516,991 1,461,237 - 1,055,753 58.1% 1,247,752 SPECIAL ENFORCEMENT TEAM 818,913 740,645 - 78,268 90.4% 1,081,788 PARKING AND STREET SWEEPING 377,749 405,957 - (28,208) 107.5% 344,267 PARKING ENFORCEMENT 1,422,226 838,126 138,656 445,444 68.7% 1,118,439 COMBINED COMMUNICATIONS CENTER 3,034,658 3,369,363 - (334,705) 111.0% 3,077,025 ANIMAL CONTROL 920,312 847,613 5,007 67,692 92.6% 860,757 Total 47,517,594 46,201,564 269,263 1,046,767 97.8% 42,386,168 Fire
ADMINISTRATION 1,181,592 1,121,485 - 60,106 94.9% 937,345 EMERGENCY SERVICES AND PUBLIC ED 499,723 490,278 - 9,445 98.1% 449,363 PREVENTION 1,373,976 1,204,179 525 169,273 87.7% 1,434,189 WILDLAND FIRE MITIGATION PROGRAM 550,388 342,197 16,900 191,291 65.2% 239,810 OPERATIONS 25,370,927 25,664,290 110,922 (404,284) 101.6% 24,776,404 TRAINING AND RECRUITMENT 827,473 710,947 - 116,525 85.9% 754,347 ARFF 2,873,041 3,003,490 - (130,449) 104.5% 2,660,841
Total 32,677,119 32,536,866 128,346 11,907 100.0% 31,252,300 TOTAL PUBLIC SAFETY 80,194,714 78,738,430 397,610 1,058,675 98.7% 73,638,467
PUBLIC WORKS
Public Works
ADMINISTRATION 1,436,974 1,275,958 23,280 137,736 90.4% 940,934 ENGINEERING SVCS 6,364,086 5,505,791 57,062 801,233 87.4% 5,362,434 PUBLIC RT OF WAY MGMT 1,888,917 1,602,241 35,775 250,901 86.7% 1,465,699 ENVIRONMENTAL PROGRAMS 999,246 664,790 174,771 159,686 84.0% 436,139 Total 10,689,224 9,048,780 290,888 1,349,556 87.4% 8,205,206 TOTAL PUBLIC WORKS 10,689,224 9,048,780 290,888 1,349,556 87.4% 8,205,206
YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD
CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
COMMUNITY SERVICES
Parks & Recreation
REC PROGRAM MGMT 826,902 775,785 25,587 25,530 96.9% 642,129 FACILITIES & SPECIAL EVENTS 1,354,313 1,335,692 - 18,620 98.6% 915,822 YOUTH ACTIVITIES 1,354,406 1,242,693 2,176 109,537 91.9% 851,032 ACTIVE ADULTS 872,764 836,584 299 35,881 95.9% 707,419
AQUATICS 1,745,507 1,822,635 24,416 (101,544) 105.8% 1,757,240 SPORTS 663,534 615,007 299 48,228 92.7% 371,217
TENNIS 392,428 379,024 - 13,403 96.6% 304,600
NEIGHBORHOOD & OUTREACH SERV 1,009,260 940,721 - 68,539 93.2% 937,680 ADMINISTRATION 1,117,707 1,078,808 - 38,898 96.5% 897,698 PROJECT MANAGEMENT TEAM 605,320 486,879 28,483 89,958 85.1% 551,169 PARK OPERATIONS MANAGEMENT 837,949 830,071 11,285 (3,407) 100.4% 797,777 GROUNDS & FACILITIES MAINTENANCE 5,703,547 5,439,475 13,804 250,267 95.6% 5,089,636 FORESTRY 1,451,408 1,367,779 - 83,629 94.2% 1,301,121
BEACH MAINTENANCE 140,663 137,086 - 3,576 97.5% 100,650 MEDIANS PARKWAYS & CONTRACTS 510,800 474,209 - 36,591 92.8% 475,415 Total 18,586,507 17,762,450 106,349 717,708 96.1% 15,700,605 Library
ADMINISTRATION 717,029 646,921 86,761 (16,653) 102.3% 515,147 CENTRAL LIBRARY 5,896,062 5,112,383 15,770 767,909 87.0% 4,319,951 EASTSIDE LIBRARY 358,383 322,416 1,269 34,697 90.3% 272,616 LIBRARY ON THE GO 114,396 109,795 - 4,600 96.0% -
Total 7,085,870 6,191,515 103,801 790,554 88.8% 5,107,714 TOTAL COMMUNITY SERVICES 25,672,377 23,953,965 210,150 1,508,262 94.1% 20,808,320
COMMUNITY DEVELOPMENT
Community Development
ADMINISTRATION 1,564,829 1,484,016 8,189 72,625 95.4% 1,181,565 RENTAL HOUSING MEDIATION 291,502 288,838 - 2,664 99.1% 262,760 HUMAN SERVICES 1,038,063 960,828 - 77,235 92.6% 844,116 LONG RANGE PLAN & SPEC STUDY 1,045,482 992,957 - 52,525 95.0% 1,016,038 DEVEL & ENVIRONMENTAL REVIEW 1,647,228 1,542,773 10,020 94,435 94.3% 1,386,452 ZONING INFO & ENFORCEMENT 1,524,840 1,365,834 13,802 145,204 90.5% 1,396,418 DESIGN REV & HIST PRESERVATION 1,581,636 1,409,620 - 172,016 89.1% 1,340,835 BLDG INSP & CODE ENFORCEMENT 2,148,033 1,802,019 19,525 326,488 84.8% 1,581,752 RECORDS ARCHIVES & CLER SVCS 781,376 644,834 10,094 126,448 83.8% 618,369 BLDG COUNTER & PLAN REV SVCS 2,701,244 2,325,328 195,244 180,673 93.3% 2,081,176 Total 14,324,234 12,817,047 256,875 1,250,312 91.3% 11,709,481 TOTAL COMMUNITY DEVELOPMENT 14,324,234 12,817,047 256,875 1,250,312 91.3% 11,709,481
YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD
CITY OF SANTA BARBARA
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
SUSTAINABILITY AND RESILIENCE
Sustainability and Resilience
ADMINISTRATION 250,068 113,579 65,245 71,244 71.5% 38,153 Total 250,068 113,579 65,245 71,244 71.5% 38,153
TOTAL SUSTAINABILITY AND RESILIENCE 250,068 113,579 65,245 71,244 71.5% 38,153
NON-DEPARTMENTAL
Non-Departmental
ANTICIPATED SALARY SAVINGS (2,100,000) - - (2,100,000) 0.0% - TRANSFERS OUT 8,622,862 5,287,905 - 3,334,957 61.3% 7,417,899 CAPITAL OUTLAY TRANSFER 25,788,418 25,653,418 - 135,000 99.5% 25,945,407 APPROP. RESERVE 80,000 - - 80,000 0.0% -
Total 32,391,280 30,941,323 - 1,449,957 95.5% 33,363,306 TOTAL NON-DEPARTMENTAL 32,391,280 30,941,323 - 1,449,957 95.5% 33,363,306 TOTAL EXPENDITURES 186,708,820 175,549,973 1,759,578 9,399,270 95.0% 165,468,209 ** The legal level of budgetary control is at the department level for the General Fund. Therefore, as long as the department as a whole is within budget, budgetary compliance has been achieved. The City actively monitors the budget status of each department and takes measures to address potential over budget situations before they occur.
For Enterprise and Internal Service Funds, the level of budgetary control is at the fund level. The City also monitors and addresses these fund types for potential over budget situations.
Included in the FY22 adopted and revised General Fund budgets are departmental targeted savings that were loaded as negative expenditures within one program of each department. This has the impact of distorting the annual budget and variances for those programs until such time as the department reallocates the negative expenditure against other approved appropriations. This task is scheduled to be completed by January 31, 2022, and has no impact on the total appropriations by General Fund department as adopted and approved by council.
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
TRAFFIC SAFETY FUND
Revenue 233,000 236,596 - (3,596) 101.5% 171,824
Expenditures 233,000 236,596 - (3,596) 101.5% 171,824
Revenue Less Expenditures - - - - -
CREEK RESTORATION/WATER QUALITY IMPRVMT
Revenue 4,032,793 5,484,890 - (1,452,097) 136.0% 4,856,175 Expenditures 4,270,724 3,557,946 345,666 367,112 91.4% 4,159,297 Revenue Less Expenditures (237,931) 1,926,944 (345,666) (1,819,209) 696,878
COMMUNITY DEVELOPMENT BLOCK GRANT
Revenue 2,014,181 908,288 - 1,105,893 45.1% 3,164,658
Expenditures 2,664,893 1,391,740 770,725 502,429 81.1% 3,182,861 Revenue Less Expenditures (650,712) (483,452) (770,725) 603,464 (18,202)
COUNTY LIBRARY
Revenue 1,078,050 951,484 - 126,567 88.3% 996,334
Expenditures 1,079,114 993,186 13,532 72,396 93.3% 835,414 Revenue Less Expenditures (1,064) (41,702) (13,532) 54,171 160,921
STREETS FUND
Revenue 12,411,119 12,585,160 - (174,041) 101.4% 12,472,907 Expenditures 14,393,469 11,723,540 117,403 2,552,525 82.3% 11,156,489 Revenue Less Expenditures (1,982,350) 861,620 (117,403) (2,726,566) 1,316,418
MEASURE A FUND
Revenue 4,061,999 5,238,884 - (1,176,886) 129.0% 4,753,463 Expenditures 4,854,932 3,711,694 30,433 1,112,805 77.1% 3,724,700 Revenue Less Expenditures (792,934) 1,527,190 (30,433) (2,289,691) 1,028,763
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Special Revenue Funds
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Service charges 32,266,595 32,523,308 - (256,713) 100.8% 29,386,644 Other Fees & Charges 30,000 908,787 - (878,787) 3029.3% 162,944 Investment Income 23,645 42,991 - (19,346) 181.8% 30,793 Grants 155,741 155,382 - 359 99.8% 46,356
Miscellaneous 286,223 280,186 - 6,037 97.9% 255,717
Operating Transfers-In 20,239 20,239 - - 100.0% -
TOTAL REVENUES 32,782,443 33,930,892 - (1,148,449) 103.5% 29,882,454
EXPENSES
Salaries & Benefits 1,584,887 1,457,908 - 126,979 92.0% 1,275,593 Materials, Supplies & Services 28,845,396 27,472,307 301,621 1,071,468 96.3% 25,518,617 Special Projects 1,170,049 738,177 204 431,668 63.1% 789,778 Transfers-Out 50,000 50,000 - (0) 100.0% 50,000
Capital Outlay Transfers 1,946 1,946 - (0) 100.0% 208,050 Equipment 185,000 96,207 22,238 66,555 64.0% 77,955
Other 40,000 - - 40,000 0.0% -
Appropriated Reserve 21,300 - - 21,300 0.0% -
TOTAL EXPENSES 31,898,579 29,816,546 324,062 1,757,970 94.5% 27,919,994 Revenue Less Expense 883,865 4,114,347 (324,062) (2,906,420) 1,962,460
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
SOLID WASTE FUND
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Water Sales- Metered 57,330,939 58,746,186 - (1,415,247) 102.5% 57,918,922 Service Charges 208,765 297,823 - (89,058) 142.7% 259,973 Cater JPA Treatment Charges 2,359,556 2,812,667 - (453,111) 119.2% 2,727,364 Investment Income 684,620 788,026 - (103,406) 115.1% 915,775 Grants 10,710,798 10,572,764 - 138,034 98.7% -
Reimbursements 3,310,043 4,218,433 - (908,390) 127.4% 1,295,162 Miscellaneous 227,206 806,609 - (579,403) 355.0% 651,553 Operating Transfers-In 339,644 339,644 - - 100.0% 279,943 TOTAL REVENUES 75,171,571 78,582,151 - (3,410,581) 104.5% 64,048,692
EXPENSES
Salaries & Benefits 12,874,407 12,013,418 - 860,989 93.3% 10,961,554 Materials, Supplies & Services 18,022,498 15,664,721 1,526,604 831,173 95.4% 15,532,036 Special Projects 740,765 403,124 141,115 196,526 73.5% 476,330 Water Purchases 11,228,839 9,119,322 - 2,109,517 81.2% 7,671,369 Debt Service 9,190,636 9,166,436 - 24,200 99.7% 9,163,052 Capital Outlay Transfers 19,122,471 19,122,471 - (0) 100.0% 13,209,221 Equipment 239,655 112,975 - 126,680 47.1% 169,167
Capitalized Fixed Assets 259,250 223,123 3,126 33,001 87.3% 234,902 Other 731,598 591,335 - 140,263 80.8% 30,764
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 72,560,119 66,416,925 1,670,845 4,472,349 93.8% 57,448,395 Revenue Less Expense 2,611,451 12,165,226 (1,670,845) (7,882,929) 6,600,297 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
WATER OPERATING FUND
from the operating fund is shown in the Capital Transfers.
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Service Charges 24,869,491 24,956,943 - (87,452) 100.4% 23,823,481 Fees 548,856 576,057 - (27,201) 105.0% 436,485
Investment Income 151,245 156,459 - (5,214) 103.4% 199,288 Rents & Concessions 61,072 55,037 - 6,035 90.1% 61,072
Miscellaneous 5,000 30,849 - (25,849) 617.0% 24,361
Operating Transfers-In 135,537 135,537 - - 100.0% 189,586 TOTAL REVENUES 25,771,201 25,910,883 - (139,681) 100.5% 24,734,273
EXPENSES
Salaries & Benefits 7,911,818 7,538,379 - 373,440 95.3% 7,172,950 Materials, Supplies & Services 9,031,971 8,496,879 402,783 132,310 98.5% 7,506,951 Special Projects 679,985 485,195 113,727 81,063 88.1% 551,881 Debt Service 3,558,338 3,558,337 - 1 100.0% 3,558,585
Capital Outlay Transfers 4,939,840 4,939,840 - 0 100.0% 2,563,219 Equipment 106,000 95,411 - 10,589 90.0% 86,171
Capitalized Fixed Assets 111,234 85,243 - 25,991 76.6% 206,855 Other 4,500 1,985 2,500 15 99.7% 1,485
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 26,493,686 25,201,267 519,009 773,410 97.1% 21,648,097 Revenue Less Expense (722,485) 709,616 (519,009) (913,091) 3,086,176 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
WASTEWATER OPERATING FUND
from the operating fund is shown in the Capital Transfers.
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Improvement Tax 750,000 965,508 - (215,508) 128.7% 638,187 Parking Fees 5,541,456 4,738,083 - 803,373 85.5% 3,349,140 Other Fees & Charges 12,925 28,994 - (16,069) 224.3% 18,517 Investment Income 53,545 30,993 - 22,552 57.9% 67,417
Rents & Concessions 136,820 159,280 - (22,460) 116.4% 157,760 Miscellaneous 295,466 251,508 - 43,958 85.1% 191,717
Operating Transfers-In 2,651,305 2,301,305 - 350,000 86.8% 719,486 TOTAL REVENUES 9,441,517 8,475,672 - 965,845 89.8% 5,142,225
EXPENSES
Salaries & Benefits 4,225,612 4,077,650 - 147,961 96.5% 3,809,362 Materials, Supplies & Services 3,794,140 3,340,427 15,573 438,141 88.5% 2,427,058 Special Projects 497,659 393,131 85,759 18,769 96.2% 610,707 Capital Outlay Transfers 226,425 226,425 - - 100.0% 1,223,579 Equipment 54,120 10,533 - 43,587 19.5% 22,900
Appropriated Reserve 10,000 - - 10,000 0.0% -
TOTAL EXPENSES 8,807,956 8,048,166 101,332 658,457 92.5% 8,093,607 Revenue Less Expense 633,562 427,506 (101,332) 307,388 (2,951,383) NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
DOWNTOWN PARKING FUND
from the operating fund is shown in the Capital Transfers.
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Leases-Commercial/Industrial 5,531,982 5,155,216 - 376,766 93.2% 5,100,127 Leases-Terminal 5,551,935 8,543,426 - (2,991,491) 153.9% 4,072,294 Leases-Non-Commercial Aviation 4,562,386 5,062,706 - (500,320) 111.0% 4,404,611 Leases-Commercial Aviation 5,121,457 4,990,309 - 131,148 97.4% 4,084,497 Investment Income 109,045 188,133 - (79,088) 172.5% 145,649 Grants 6,344,534 5,907,498 - 437,036 93.1% 8,569,915
Service Charges - 1,358 - (1,358) 100.0% 742
Miscellaneous 119,196 160,468 - (41,272) 134.6% 156,493 Operating Transfers-In 271,560 271,560 - - 100.0% 2,222,564 TOTAL REVENUES 27,612,095 30,280,673 - (2,668,578) 109.7% 28,756,892
EXPENSES
Salaries & Benefits 9,183,365 8,652,543 - 530,822 94.2% 7,525,943 Materials, Supplies & Services 12,420,485 10,655,299 1,007,807 757,379 93.9% 8,757,606 Special Projects 2,389,869 815,622 108,301 1,465,946 38.7% 73,954 Transfer-Out 250,000 - - 250,000 0.0% 674,763
Debt Service 1,555,750 1,555,750 - 0 100.0% 1,553,000
Capital Outlay Transfers 5,400,929 5,400,929 - 0 100.0% 4,798,442 Equipment 230,390 146,207 7,577 76,606 66.7% 148,093
Appropriated Reserve 104,959 - - 104,959 0.0% -
TOTAL EXPENSES 31,535,748 27,226,349 1,123,686 3,185,713 89.9% 23,531,801 Revenue Less Expense (3,923,653) 3,054,324 (1,123,686) (5,854,291) 5,225,091 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
AIRPORT OPERATING FUND
from the operating fund is shown in the Capital Transfers.
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Fees & Card Sales 3,427,253 3,967,444 - (540,191) 115.8% 3,842,441 Investment Income 10,745 20,512 - (9,767) 190.9% 15,419 Rents & Concessions 205,211 209,500 - (4,289) 102.1% 233,341 Miscellaneous - 887 - (887) 100.0% 3,278
TOTAL REVENUES 3,643,209 4,198,344 - (555,135) 115.2% 4,094,479
EXPENSES
Salaries & Benefits 82,612 77,744 - 4,868 94.1% 50,774
Materials, Supplies & Services 3,031,007 2,928,005 - 103,001 96.6% 2,807,396 Debt Service 41,430 41,430 - (0) 100.0% 41,430
Capital Outlay Transfers 210,636 210,636 - - 100.0% 201,926 TOTAL EXPENSES 3,365,685 3,257,816 - 107,869 96.8% 3,101,527 Revenue Less Expense 277,524 940,528 - (663,004) 992,952 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
GOLF COURSE FUND
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Service Charges 3,087,902 3,087,909 - (7) 100.0% 3,122,907 Work Orders - Bldg Maint. 3,548,781 3,251,642 - 297,139 91.6% 3,167,493 Miscellaneous 10,500 3,055 - 7,445 29.1% 1,448
Operating Transfers-In 230,526 80,526 - 150,000 34.9% 364,281 TOTAL REVENUES 6,877,709 6,423,132 - 454,577 93.4% 6,656,129
EXPENSES
Salaries & Benefits 4,414,605 3,866,430 - 548,174 87.6% 3,824,706 Materials, Supplies & Services 2,110,329 1,902,222 - 208,107 90.1% 1,711,915 Special Projects 406,120 355,097 10,246 40,777 90.0% 243,371 Capital Outlay Transfers 477,198 477,198 - - 100.0% 1,045,981 Equipment 10,000 5,719 - 4,281 57.2% 8,154
Appropriated Reserve 85,065 - - 85,065 0.0% -
TOTAL EXPENSES 7,503,317 6,606,666 10,246 886,404 88.2% 6,834,128 Revenue Less Expense (625,608) (183,535) (10,246) (431,827) (177,999)
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
FACILITIES MANAGEMENT FUND
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Vehicle Rental Charges 3,161,109 3,171,963 - (10,854) 100.3% 2,957,047 Investment Income 168,561 179,604 - (11,043) 106.6% 211,356 Rents & Concessions 123,982 119,602 - 4,380 96.5% 151,555 Miscellaneous 112,000 155,150 - (43,150) 138.5% 197,058 Operating Transfers-In 59,000 59,000 - - 100.0% 244,328 TOTAL REVENUES 3,624,652 3,685,318 - (60,666) 101.7% 3,761,344
EXPENSES
Salaries & Benefits 247,988 172,508 - 75,479 69.6% 220,545 Materials, Supplies & Services 19,553 18,308 - 1,245 93.6% 18,175 Special Projects 75,000 - - 75,000 0.0% -
Debt Service 104,408 104,408 - - 100.0% -
Transfer-Out - - - - 0.0% 111,336
Capital Outlay Transfers 1,054,838 1,054,838 - - 100.0% 93,380 Capitalized Fixed Assets 5,364,631 2,052,055 682,647 2,629,929 51.0% 1,675,480 TOTAL EXPENSES 6,866,417 3,402,117 682,647 2,781,653 59.5% 2,118,916 Revenue Less Expense (3,241,765) 283,201 (682,647) (2,842,319) 1,642,428
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
FLEET REPLACEMENT FUND
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Vehicle Maintenance Charges 2,921,453 2,913,716 - 7,737 99.7% 2,820,602 Reimbursements 5,000 5,000 - (0) 100.0% 31,154
Miscellaneous 60,000 69,854 - (9,854) 116.4% 92,755
Operating Transfers-In 31,196 31,196 - - 100.0% -
TOTAL REVENUES 3,017,649 3,019,766 - (2,117) 100.1% 2,944,512
EXPENSES
Salaries & Benefits 1,487,372 1,424,094 - 63,278 95.7% 1,454,344 Materials, Supplies & Services 1,463,658 1,465,043 6,526 (7,912) 100.5% 1,204,534 Special Projects 141,377 109,174 24,942 7,262 94.9% 28,844 Debt Service - - - - 0.0% 14,579
Capital Outlay Transfers 61,934 61,934 - - 100.0% -
Equipment 7,147 17,214 - (10,067) 240.9% 5,433
Capitalized Fixed Assets 46,488 16,213 30,275 - 100.0% 504 Appropriated Reserve 15,000 - - 15,000 0.0% -
TOTAL EXPENSES 3,222,975 3,093,671 61,743 67,562 97.9% 2,708,238 Revenue Less Expense (205,326) (73,905) (61,743) (69,679) 236,274
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
FLEET MAINTENANCE FUND
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Insurance Premiums 5,056,793 5,056,794 - (1) 100.0% 3,448,018 Workers' Compensation Premiums 4,219,100 4,164,100 - 55,000 98.7% 4,132,711 OSH Charges 290,230 290,230 - (0) 100.0% 275,896
Unemployment Insurance Premium 277,529 277,529 - (0) 100.0% 227,559 Investment Income 53,545 41,123 - 12,422 76.8% 69,557
Miscellaneous - - - - 0.0% 292,615
Operating Transfers-In 518,890 518,890 - - 100.0% 6,404,857 TOTAL REVENUES 10,416,087 10,348,667 - 67,420 99.4% 14,851,214
EXPENSES
Salaries & Benefits 756,388 776,573 - (20,186) 102.7% 715,888 Materials, Supplies & Services 10,590,896 10,826,691 45,793 (281,588) 102.7% 11,163,747 Capital Outlay Transfers 818 818 - (0) 100.0% -
TOTAL EXPENSES 11,348,101 11,604,082 45,793 (301,774) 102.7% 11,879,635 Revenue Less Expense (932,014) (1,255,415) (45,793) 369,194 2,971,578 The Self Insurance Trust Fund is an internal service fund of the City, which accounts for the cost of providing workers' compensation, property and liability insurance as well as unemployment insurance and certain self-insured employee benefits on a city-wide basis. Internal Service Funds charge other funds for the cost of providing their specific services.
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
SELF INSURANCE TRUST FUND
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Service charges 4,485,985 4,485,982 - 3 100.0% 3,733,713 Operating Transfers-In 76,240 76,240 - - 100.0% 107,118 TOTAL REVENUES 4,562,225 4,562,222 - 3 100.0% 3,840,831
EXPENSES
Salaries & Benefits 2,720,726 2,588,446 - 132,280 95.1% 2,374,288 Materials, Supplies & Services 1,694,740 1,599,080 25,331 70,328 95.9% 1,086,751 Special Projects 21,091 14,195 97 6,799 67.8% 325
Capital Outlay Transfers 232,127 232,127 - - 100.0% 268,205 Equipment 12,130 11,969 - 161 98.7% 7,109
TOTAL EXPENSES 4,680,814 4,445,817 25,429 209,568 95.5% 3,736,678 Revenue Less Expense (118,590) 116,405 (25,429) (209,566) 104,153 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
INFORMATION TECHNOLOGY FUND
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Leases - Commercial 1,850,000 2,257,613 - (407,613) 122.0% 1,965,420 Leases - Food Service 2,795,000 3,400,627 - (605,627) 121.7% 2,800,596 Slip Rental Fees 4,829,458 4,894,155 - (64,697) 101.3% 4,757,212 Visitors Fees 649,459 817,254 - (167,795) 125.8% 693,437 Slip Transfer Fees 1,200,000 1,380,950 - (180,950) 115.1% 1,709,625 Parking Revenue 2,814,685 3,377,751 - (563,066) 120.0% 2,637,469 Wharf Parking 180,000 292,108 - (112,108) 162.3% 243,234 Grants - 12,752 - (12,752) 100.0% 10,707
Other Fees & Charges 235,562 246,707 - (11,145) 104.7% 229,927 Investment Income 89,945 116,260 - (26,315) 129.3% 109,957 Rents & Concessions 385,000 431,378 - (46,378) 112.0% 407,329 Miscellaneous 629,892 458,220 - 171,672 72.7% 199,488
Operating Transfers-In 128,603 128,603 - - 100.0% -
TOTAL REVENUES 15,787,604 17,814,379 - (2,026,775) 112.8% 15,764,403
EXPENSES
Salaries & Benefits 7,839,278 7,461,657 - 377,621 95.2% 6,702,108 Materials, Supplies & Services 5,472,124 4,848,929 208,954 414,241 92.4% 4,565,203 Special Projects 233,348 175,392 29,070 28,886 87.6% 144,488 Debt Service 2,038,500 2,038,500 - (0) 100.0% 2,042,191 Capital Outlay Transfers 436,852 436,852 - 0 100.0% 1,221,243 Equipment 121,895 51,843 525 69,527 43.0% 69,956
Capitalized Fixed Assets 78,544 - 36,643 41,901 46.7% - Other 2,375 2,513 - (138) 105.8% 2,513
Appropriated Reserve 100,000 - - 100,000 0.0% -
TOTAL EXPENSES 16,322,915 15,015,686 275,191 1,032,039 93.7% 14,747,702 Revenue Less Expense (535,310) 2,798,694 (275,191) (3,058,814) 1,016,701
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
WATERFRONT OPERATING FUND
NOTE - These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Service Charges 10,972,584 14,718,475 - (3,745,891) 134.1% - Investment Income - 73 - (73) 100.0% 244
Miscellaneous - - - - 0.0% 100,000
Operating Transfers-In 1,553,423 1,593,466 - (40,043) 102.6% 579,259 TOTAL REVENUES 12,526,007 16,312,014 - (3,786,007) 130.2% 679,503
EXPENSES
Salaries & Benefits 155,481 163,292 - (7,811) 105.0% -
Materials, Supplies & Services 9,276,308 14,579,031 158,539 (5,461,262) 158.9% 48,558 Special Projects 744,127 786,612 16,794 (59,278) 108.0% 80,000 Transfer-Out - - - - 0.0% 322,000
Debt Service - 19,658 - (19,658) 100.0% 3,257
Other 49,000 - - 49,000 0.0% -
TOTAL EXPENSES 10,224,917 15,548,593 175,333 (5,499,009) 153.8% 453,815 Revenue Less Expense 2,301,090 763,421 (175,333) 1,713,002 225,688
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
SANTA BARBARA CLEAN ENERGY FUND
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
REVENUES
Service charges 2,369,071 2,369,071 - (0) 100.0% 1,852,461 Grants 184,600 169,601 - 14,999 91.9% 175,561
Miscellaneous - 1 - (1) 100.0% 48,627
Operating Transfers-In 11,565 11,565 - - 100.0% 307,705 TOTAL REVENUES 2,565,236 2,550,238 - 14,999 99.4% 2,384,354
EXPENSES
Salaries & Benefits 512,963 483,931 - 29,032 94.3% 400,956 Materials, Supplies & Services 1,839,379 1,489,550 125,755 224,073 87.8% 1,238,641 Special Projects 160,774 11,402 51,744 97,628 39.3% 24,964 Transfer-Out - - - - 0.0% 250,000
Debt Service 24,140 24,140 - (0) 100.0% 24,140
Capital Outlay Transfers 100,870 100,870 - 0 100.0% 229,791 Equipment 4,000 646 - 3,354 16.2% -
Capitalized Fixed Assets 169,600 91,000 78,600 - 100.0% - TOTAL EXPENSES 2,811,726 2,201,540 256,099 354,087 87.4% 2,168,492 Revenue Less Expense (246,490) 348,697 (256,099) (339,088) 215,862 NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution from the operating fund is shown in the Capital Transfers.
CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For the Twelve Months Ended June 30, 2022 (100% of Fiscal Year)
ENERGY AND CLIMATE MANAGEMENT FUND
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 1 General Fund Revenues
The table below summarizes preliminary General Fund revenues for the twelve months ended June 30, 2022. For interim financial statement purposes, revenues are reported on a cash basis (i.e., when the funds are received). Each of these revenues below have unique cycles for collections, which may vary from other revenues, and which can cause fluctuations from previous years.
This table includes the annual adopted budget as well as any budget adjustments to date, and actual collections for Fiscal Year 2022. The City’s general tax revenues, Franchise Fees, and Fees & Charges are reported in the table above. The largest general tax revenues are discussed in more detail below.
Property Tax
As of June 30, 2022, $42.2 Million in property tax revenues had been received to date. During the budget process, it was expected the City would see growth of approximately 5% from the prior year; however, more recent information now shows lower growth of approximately 3% to
3.5%. Some of this is due to Proposition 13, in which the assessed value of properties increases each January to the lesser of 2% or CPI. In the last several years, this increase was 2%. CPI for ATTACHMENT 2
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 2 2021-2022 was only 1.016%. Actual property tax revenues came in below budget by approximately $121,000 at year end.
Sales Taxes
Sales tax revenue received to date is approximately $28.5 Million. While representing twelve months of sales tax payments collected through June 30, 2022, on a cash basis; $5.4 Million of this represents sales prior to FY2022 and will be accrued back to the prior year.
Sales tax has been trending in a positive direction for several months, likely due to a combination of increased consumer spending (particularly in online sales and auto sales), and the results of higher-than-expected inflation. Sales tax came in higher than budget by nearly $5.3 Million. Staff continues to monitor this revenue closely and will evaluate whether adjusting the FY2023 budget projection is warranted.
Measure C Sales Taxes
Voters approved a one-cent Measure C sales tax in Fiscal Year 2018, which became effective April 1, 2018. Measure C sales tax revenue received at yearend is approximately $30.8 Million on a cash basis. Similar to sales tax, Measure C sales tax also came in higher than budget by $5.8 Million at yearend. Staff will continue to monitor this revenue closely and may consider adjusting the FY2023 budget projection if warranted. The additional Measure C revenue will be programmed for capital projects in future budget cycles.
Transient Occupancy Tax
Transient occupancy tax (TOT) revenue at yearend is $26.6 Million, which is significantly higher than collections for FY2021 (70% higher), due to COVID-19. The local travel industry is seeing increases in demand for rooms, now higher than pre-pandemic levels. However, the main cause of the growth is largely the result of increases in average daily rates, which are 30%-40% higher than FY2019 pre-pandemic rates. TOT revenues came in higher than budget by $7.1 Million (37%) at yearend. Staff continues to monitor this revenue closely and may consider adjusting the FY2023 budget projection if warranted.
Department and Other Revenues
On March 8, 2022, the City Council approved of appropriating $1,047,112 of the $10.9 Million in American Rescue Plan Act (ARPA) funds that were received in June 6, 2022 into the General Fund to partially offset some of the revenue that has been lost in the General Fund directly related to economic impacts from COVID-19. These funds will be used to continue to provide services to the community. These funds were included in FY2022 as intergovernmental revenues.
Departmental revenues comprise approximately $33.8 Million of the General Fund budgeted revenues. They span various revenue categories listed in the table above, however, for simplicity of reporting, the variance is shown in the Fees & Charges category.
Overall, departmental revenues ended the year approximately $783,974 above budget, primarily due to additional permit and other revenue in the Community Development Department. The table below provides variances by department.
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 3 Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 4 General Fund Expenditures
The table below summarizes the General Fund budget and year-to-date expenditures through June 30, 2022. The “Revised Budget” column represents the adopted budget, appropriation carryovers from the prior year, and any supplemental appropriations approved by the City Council in the current year.
The table includes actual expenditures without encumbrances. Inclusion of encumbrances can distort the analysis of budgeted and actual expenditures during the year, as actual receipt of services or goods can occur in later periods. Outstanding encumbrances include certain appropriations that were carried forward from prior year and contracts or blanket purchase orders that have been executed in the current year but are expected to be used throughout the year. The following discussion of actual expenditures does not include the impact of encumbrances.
In some cases, COVID-19 caused increased expenditures as the City has quickly pivoted in response to unprecedented impacts and potential threats of the pandemic. The FY2022 adopted budget included several targeted reduction plans designed to reduce the City’s overall expenditures. These targeted reductions were spread over departments in the General Fund and total $6.8 Million.
The General Fund revised budget, including $6,699,596 of carried forward appropriations and encumbrances, and any new FY2022 council approved amendments, is $186.7 Million, of which $181.4 Million has been spent as of June 20, 2022. The table below shows performance at department level.
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 5 Expenditure Analysis by General Fund
The General Fund Expenditure Budget for FY2022 was adopted at $169.5 Million, with an additional $6.7 Million added as a result of carried over budget from FY2021 and any other Council-approved adjustments. 43.0% of the total budget, including Non-Departmental Expenditures, is appropriated to provide public safety services through the Police and Fire Departments. Community Services combines the Parks & Recreation and Library Departments and comprises 13.8% of the total budget. General Government makes up 12.4% of the appropriations and is the total of all costs for Finance, City Administration, Mayor & Council, City Attorney, Human Resources, and City Clerk.
All departments are targeted with achieving expenditure savings that were included in the adopted budget. Most departments met or exceeded this goal as originally determined at $6.8 Million for all departments through FY2022. With continued uncertainty in how the economic impact of the pandemic will be felt by the City, staff has confidence that expenditures will end the year below budget and meet expenditure reduction targets.
General Fund expenditures were $181.4 Million as of June 30, 2022, representing 97% of the revised budget, with an additional $1.8 Million (0.9%) encumbered.
General Government actual spending of $20.0 Million, represents 86.0% of the annual budget.
This includes salary savings from holding several positions vacant through the second quarter of FY2022.
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 6 Public Safety has expenditures of $78.7 Million, representing 98.2% of the annual budget, with savings achieved from keeping a number of positions vacant.
The Police Department (PD) expended $46.2 Million (97.2%) of its budget. The department continues to incur overtime costs due to impacts of COVID-19 on staffing levels and has returned to 10 plan 12 plan shifts. Additionally, a Holiday payout in the fourth quarter drove salaries over budgeted amounts; however, the payout significantly reduced the City’s long-term liability. Despite exceeding budgeted salaries, savings in benefits (due to vacancies) and other cost saving measures resulted in overall savings of $ 1.0 Million for the Department.
The ongoing officer staffing shortage has necessitated staffing reassignments and suspension of some programs until minimum staffing levels can be met. To meet the COVID-19 reduction target, several positions will be held open through the end of FY2022. Discussions regarding staffing needs continue between the Police Chief and the City Administrator, and levels with adjustments to be made accordingly.
The Fire Department (FD) expended $32.5 Million, including encumbrances, using 99.6% of its budget. Overtime needed to meet required minimum staffing levels and mutual aid increased personnel costs. An additional, unanticipated settlement payment also contributed to increased expenditures during the first quarter. Despite this, the department has met its planned reduction target of $1.6 Million by keeping open administrative positions and eliminating or deferring certain programs to FY2023. Fire deployed personnel and equipment to fourteen emergency incidents including the largest fire in California history (the Dixie Fire). This mutual aid accounted for $1.2 Million in overtime, but also generated 20 invoices totaling $2 Million, creating additional revenue for the department.
Community Services had actual expenditures of $24.0 Million, or 93% of budget. This performance is the result of significantly reduced operations over the first half of the year with many programs and services cancelled due to health orders.
The Library Department spent $6.2 Million, or 87% of its annual budget, through fourth quarter 2022. Post-COVID, the Library has been reopened for full in-person services for most of FY2022, but continues to experience impacts to user fees and donations. Despite a reduction of 19 open hours to the public and continued significant short staffing, the Library has continued to deliver materials and robust services in-person, virtually, and through offsite outreach using the new Library on the Go Van, with over 100 site visits to date. The Library has held two full-time positions vacant as well as hourly positions vacant. The Library achieved its targeted reduction of $265,726 at the end of first quarter through the salary and benefits savings from these vacancies.
The Parks & Recreation Department had expenditures of $17.8 Million (95.6% of annual budget). The department continues to provide essential services, such as park maintenance to ensure community access to safe and clean open spaces, food distribution and senior meal programs to provide nutrition for the community, and recreation programming, camps, and affordable activities both for youth and adults, while complying with required safety protocols to be open during COVID-19. At the same time, they continue to advance key capital infrastructure planning, design, and construction in anticipation of operations post pandemic. By holding open most currently vacant permanent staff and hourly positions, delaying recruitments, and reducing non-essential operating expenditure, the department exceeded its expenditure reduction targets for FY2022.
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 7 The Public Works Department (PW) had expenditures of $9.0 Million (85% of annual budget) for FY2022, reflecting a savings of $1.3 Million. Although Engineering Work Order revenues has increased over the last few fiscal years, the year ended with a revenue shortfall of 10% due to vacant billable positions. Engineering Services had partially-offsetting expenditure savings of over $800,000 mainly due to salary and benefits savings from staffing vacancies, extended leaves throughout the year, and reduced discretionary spending, resulting in 90% cost recovery for Engineering Services.
Land Development Engineering ended the year at 94% cost recovery. This is an ideal cost recovery percentage and meets budget. The revenue shortfall is primarily due to staffing vacancies as the Land Development worked diligently throughout the year to increase revenue and curb discretionary spending to alleviate the revenue shortfall.
The Administration program underspent its budget by almost $136,000 primarily due to staff turnover and cost-saving measures during the pandemic, especially lower supply costs as employees continued to telecommute.
At year end, the Environmental Compliance budget shows a net savings of $95,000 due to a revenue shortfall of $42,000 and expenditure savings of $137,000. However, the remaining appropriations from State reimbursement funds ($80,000) have been requested to be carried over for underground tank abatement and major remediation efforts in FY2023.
The Sustainability & Resilience Department (S&R) had expenditures of $113,579 (45.4% of annual budget). A new department in FY2021, S&R achieved its targeted savings for FY2022 by holding a director position open. All encumbered funds ($65,245) are due to an outsourced vendor to service the CalRecycle program and will be fully spent by the end of FY2022. The department expects to end FY2022 below budget.
The Community Development Department (CD) had expenditures of $12.8 Million or 89.5% of annual budget. If you include encumbrances of $257,000 the total percentage of funds used is 92%. Expenditure savings of approximately $1.2 Million were primarily due to salary and benefits ($992,000), with a peak vacancy rate of 20%, and supplies and services ($202,000) with close monitoring of departmental needs and reducing expenditure wherever possible. The Department met its budget reduction target of $643,120.
Non-Departmental expenditures include transfers from the General Fund to other funds, the majority of which includes transfers to the Measure C fund for various capital maintenance and improvement projects. In prior fiscal years, the revenue summary table included anticipated year-end budget variances. This represented approximately 1.5% of budgeted operating expenditures in the General Fund and represents staff’s estimate of the favorable expenditure variances (i.e., expenditures under budget primarily from attrition savings from position vacancies) for the year. The anticipated year-end variance budget is now reported in nondepartmental expenditures in the adopted FY2022 budget.
General Fund Reserves Projection:
The table below summarizes the reserves projected in the General Fund by the end of FY2022, compared to the FY2022 adopted budget and prior year actual reserves. The table summarizes the General Fund reserve targets of 15% disaster and 10% contingency reserves as required by City Council resolution 12-066. Staff will continue to include a projection of anticipated changes to reserves based on likely revenue and expenditure projections included in future reports during quarterly reports to the City Council.
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 8 General Fund:
Fund Balance
FY2019
Actual
FY2020
Actual
FY2021
Actual
FY2022
Projected
at Q4
FY2022 vs FY2021
Projected Change
in Reserve
Contingency Reserve
Target 10% $13,910,966 $13,799,412 $14,255,661 $14,965,025 $709,364 Disaster Reserve
Target 15% 20,866,449 20,699,118 21,383,491 22,447,538 1,064,047 Total Policy Reserve
Target $34,777,415 $34,498,530 $35,639,152 $37,412,563 $1,773,411 (Below) / Above Policy (1,513,888) (8,526,275) (1,419,589) 4,110,358 5,529,947 Actual Reserves $33,263,527 $25,972,255 $34,219,563 $41,522,921 $7,303,358 Self-Insurance Fund
Under-Reserve (2,109,073) (4,580,532) (4,758,252) (5,889,878) (1,131,626) Remaining
Contingency Reserve $10,288,005 $692,605 $8,077,820 $13,185,505 $5,107,686 The FY2022 adopted budget required the strategic use of a small amount of reserves in order to balance the budget. Due to the favorable revenue growth in sales tax and TOT during most of FY2022, along with additional operating and capital savings from departments, the General Fund reserve position is projected to grow by the end of FY2022. Both disaster and contingency reserves are projected to be replenished by the end of FY2022. The Self-Insurance Fund underreserve amount represents the burden on the General Fund for the reserve position being lower than the actuarial recommended level.
The graph below summarizes the General Fund Reserves since FY2005, including a projection of ending reserves at the end of FY2022. The FY2023 called for the use of $1 Million of reserves to balance the budget, bringing reserves below policy targets in FY2023.
Enterprise Operating Fund Revenues and Expenses
Unlike the General Fund, which relies primarily on taxes to fund programs and services, Enterprise Fund operations is financed primarily from user fees and other non-tax revenues.
The table below summarizes Enterprise Fund revenues and expenses through June 30, 2022, with a comparison to the current fiscal year budget and prior fiscal year expenses. $0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
Actual Disaster Reserves Actual Contingency Reserves Policy Reserves Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 9 The expenses shown in the preceding table do not include outstanding encumbrances as of June 30, 2022. Inclusion of encumbrances can distort the analysis of budgeted and actual expenditures. Outstanding encumbrances include appropriations that were carried forward from prior year as part of the appropriation carryovers and contracts or blanket purchase orders that have been added in the current year but are expected to be spent over the coming months.
Solid Waste Fund
Solid Waste Revenues are $33.9 Million at the end of the fourth quarter, an excess of 3.5% ($1.1 Million) above budgeted amounts. This included $864,000 from the ReSource Center, which was generated by an excess in their Rate Stabilization Fund. According to the Master agreement, when there is excess money in the Rate Stabilization Fund, the County returns the surplus based on a percentage of material delivered by each member. Due to delays in construction, the Rate Stabilization Fund had an excess amount, of which the City received $864,000. This disbursement is considered a one-time event and is unlikely to occur in future periods. In addition, the City generated about $2.75 Million in additional solid waste rate Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 10 revenues over FY2021 numbers, due in part to stable residential and commercial card usage, and higher than expected adopted rates.
Expenditures are $29.8 Million (93.5% of the budget). Most of the increase in expenditure is due to higher-than-expected rate revenue and the associated payments to MarBorg for hauling service.
Staff turnover, specifically vacancies in Code Enforcement Officer and an Environmental Services Specialist, generated about $114,000 in compensation savings by yearend.
Expenditures related to supplies and services are about $1.3 Million under budget. The City adjusted the budget at third quarter in response to higher-than-expected payments to MarBorg.
The City pays a percentage of the rate revenue it receives to MarBorg for hauler services, therefore, higher rate revenue typically translates to a higher payment to MarBorg, as is expected to be the case this year. At year end, the payment to MarBorg was about $672,000 less than budgeted. In addition, professional services contracts were budgeted at $668,844, but only $223,929 was expended, with the balance to be carried over into FY2023, to be paid on current contracts.
Water Fund
At year end, Water Fund revenues are at $78.6 Million, or 104.5% of the revised budget, which is $3.4 Million above revised budget. Customer rate revenue, the Water Fund’s primary revenue source, exceeded budget by approximately $1 Million at year end. A drier rainy season and uptick in residential water use contributed to higher overall water use than expected.
In the third quarter, a total of $711,000 was received via the California Water Arrearage Payment Program. Since receiving the grant, customers made significant payments between early December and April, when the credits were applied. Approximately $573,000 was applied to customers, unapplied funds ($138,000) were returned to the grant agency.
Sale of surplus water came in approximately $900,000 above budgeted amounts, mainly due to an additional limited-term agreement with La Cumbre Mutual Water Company, which commenced March 1, 2022, and updates to the Water Supply Agreement with Montecito Water District, which occurred after the budget was developed.
The City received reimbursements from Cachuma Operations and Maintenance Board ($314,000) for FY2021, and IDE Americas ($305,000) for a true up of electrical and chemicals costs on years 1 and 2 of the Desal Plant design and implementation. Joint Powers Reimbursements exceeded budget by $453,000, primarily due to design costs associated with the Cater Finished Water Resiliency Project. Conversely, due to limited available water and declining water quality, staff were unable to deliver water from Gibraltar Reservoir starting in January 2021. Water deliveries resumed in February 2022 (a year later), after winter rains partially filled Gibraltar and improved water quality. The interruption caused this line item to come in $173,000 below budget.
Expenditures ended the year at 93.8% of annual budget, including incumbrances, or approximately $4 Million below revised budget.
Vacancies and employee turnover produced budgetary savings of $861,000, or 7%. Supplies and services came in $221,000 below budget owing to lower use of discretionary costs like Waste Disposal, Non-Contractual Services, and several smaller line items. Special projects showed savings of $2.3 Million, or 19% of budget (including encumbrances). Approximately Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 11 $1.3 Million of this was due to lower than anticipated State and Cachuma water deliveries on various Water supply contracts, with the remaining amount mainly because less supplemental water was available for purchase and delivery ($800,000).
Increased Southern California Edison Rates, a planned move to 100% carbon free electricity, and increased chemical costs drove Electric and Chemical costs over budget by $143,000 and $102,000, respectively, eating into the above savings.
Wastewater Fund
Yearend revenues are on target at $25.9 Million, Only a portion of Wastewater rates is dependent on water usage, which explains why there is less variability in Wastewater rate revenue when compared to Water rate revenue. Various other revenue sources, such as Interest Income, Sewer Tap Fees, Pre-treatment Analysis, and Fats-Oils-Grease (FOG) Disposal Fees experienced small variances that contributed to the overall balance of revenues.
Expenditures are below budget at $25.2 Million (95.1% of annual budget) at year end. Staff turnover and vacancies, most notably 7 months’ vacancy of the Collections Superintended position, drove savings, bringing salaries and benefits in at $373,000 below budget. An additional $34K came from supplies and services, as anticipated or backlogged services were lower than projected. Some cost savings were offset by Electric and Chemical costs, which were over budget by $72,000 and $115,000 respectively. Southern California Edison rate increases (12%), a planned move to 100% carbon free electricity, and increased chemical costs drove overages in these two areas.
Downtown Parking Fund
At year end, revenues ultimately came in at $8.5 Million, or 90% of budget. The shortfall in revenue was expected due to the impacts of the pandemic. Although demand for employee parking permits is beginning to recover, it remains well below pre-COVID-19 levels because many offices continue to ask their employees to work from home. Parking and Business Improvement Area assessments helped improve revenues, coming in at almost $966,000, which is $216,000 (28.8% above budgeted amounts), indicating that businesses are recovering from pandemic-related impacts stronger than expected. Demand for hourly parking has returned to pre-pandemic levels on weekends but remains lower than normal on weekdays.
Despite this recovery, hourly revenues remain well below pre-pandemic levels because Downtown Parking is having difficulty hiring and retaining enough hourly lot operators to return to normal hours of operation while adhering to the 1,000-hour annual limit. ARPA funds of $1.8 Million will also help to alleviate impacts to revenue shortages, but as hours of revenue collection remain limited, contributing to the total revenue shortfall of almost $2.5 Million before ARPA funds being applied.
On March 8, 2022, the City Council approved of appropriating $1,0483,189 of the $10.9 Million in American Rescue Plan Act (ARPA) funds, which were received on June 6, 2022, to partially offset some of the revenue that has been lost in the Downtown Parking Fund directly related to economic impacts from COVID-19. These funds were used to continue to provide services to the community.
Expenditures came in at $8.0 Million (91.4% of annual budget). This is mainly due to lower Salary and Benefit costs with ongoing vacancies in permanent positions, Supplies and Services savings from carrying ARPA related projects over to FY2023, and reduced credit card fees due to decreased hourly parking transactions. However, these were offset by hourly salaries coming Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 12 in over budget, increased electricity costs due to higher-than-expected uses. Additionally, the encumbrances in Special Project lines for the PBIA assessment study ($82,000) will be rolled to FY2023, as the study remains on hold due to major changes to the State Street Promenade and ongoing master planning process.,
The Downtown Parking Fund reserves have gradually declined over the past 4 years and the impacts of COVID-19 have further deteriorated the reserve position. The fund is below the policy reserve target at the end of FY2022.
Clean Energy Fund
The Santa Barbara Clean Energy Fund began operation in October 2021 and started receiving revenue in the second quarter this year. By year-end, revenues totaled $16.3 Million, about $3.8 Million above budget because of better-than-expected participation from ratepayers. In addition, a $2 Million General Fund loan was disbursed to cover startup costs. Because of timing differences of cash flows and a slightly higher number of customers taking longer to pay their bills, staff requested an additional $542,161 loan amount at yearend. The loan is disbursed on an as-needed basis as costs occur.
Expenditures for the Fund were $15.5 Million (52.1% over annual budget) for FY2022. The program’s second phase launched during fourth quarter, bringing in commercial customers and accelerating costs accordingly. This increase is due to better-than-expected customer participation as well as significant increases in power costs due to the recent run up in energy markets.
Airport Fund
The Santa Barbra Airport continues to see better than anticipated recovery in commercial airline activity, driving overall revenue growth. In other lines of business, the Airport revenues remained stable. Total revenue collected through the fourth quarter is $30.3 Million or 109.7% of annual budget. Total expenses through the fourth quarter are at $27.2 Million with an additional $1.1 Million in encumbrances or 98.8% of annual budget. The actual surplus is the result of $5.9 Million of ARPA funds that were received in the fourth quarter, higher than budgeted revenues from record Airline Passenger activities and expenditure budget savings. Passenger counts nearly doubled from 58,000 in January 2022 to a new record monthly count of 114,000 in June 2022, contributing to Terminal revenue rising 9.7% over FY2022 budget.
Expenditures were $27.2 Million, or 86.38% of the annual budget, including encumbrances. The Airport achieved savings due to unfilled vacancies in the first half of the fiscal year and other related operating expenses across most programs. As vacancies persist and possibly increase with planned retirements and difficulties in the labor market, overtime costs have risen and may increase further to back fill these positions. Airport ended the fiscal year at 89.9% of budgeted expenditures including encumbrances.
Golf Fund
Golf Fund Revenues came in 15% above budget at $4.2 Million. Golf continues to maintain its popularity post COVID-19. This popularity combined with excellent weather and favorable course conditions resulted in 72,248 paid rounds of golf in FY2022; more than 10,000 rounds above budget projections.
At Q3 the operations expense authority was adjusted to account for increased play and activity at the golf course, resulting in a net favorable return of $940,528 in FY2022 which is 28% greater than projected at Q3.
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 13 Expenditures were $3.3 Million, or 96.8%, of annual budget. Due to continued high use of the Golf Course, the City anticipated the operator would achieve a higher incentive fee than projected at midyear. Additionally, corresponding operational expenses are slightly higher than forecast at midyear. Even with the increase in expenditures, the Golf Fund’s revenues exceeded expenditures by over $940,000 in FY2022.
Waterfront Fund
The Waterfront Department’s revenues and expenditures for FY2022 at year end continue to rebound from the impact of the COVID-19 pandemic, with Waterfront parking lot revenues achieving all time daily highs in June and July in addition to the return of community events to help promote Santa Barbara and the Waterfront. Budgeted revenue estimates for FY2022 were very conservative due to significant COVID-related economic uncertainty. Ultimately, the fund exceeded FY2022 budgeted revenues by yearend and outperformed FY2021 in some instances. Waterfront Revenues were $17.8 Million (12% over annual budget) at yearend.
Commercial leases at both Stearns Wharf and the Harbor are up 22.9%, or $423,901 over budgeted amounts, food service leases are up 27.2%, and parking revenues up 22.3% over prior year.
Expenditures were $15.0 Million, or 92.0%, of annual budget. Cost savings were achieved by maintaining numerous position vacancies and reducing supplies and services costs across Waterfront Divisions. Additionally, Capital Outlay has been drastically reduced as COVID-19 delayed many capital projects, with planning and activities for future projects continuing at lower than initial costs. The department continues to monitor costs and achieved over $1 Million in savings for FY2022.
Enterprise Operating Funds: Year-End Projected Reserves.
The table below summarizes the anticipated impact on reserves in each of the major enterprise funds at the end of FY2022 compared to policy reserve targets.
Although staff were projecting that Downtown Parking would require using reserves in FY2022, additional salary and other operational savings resulted in a small surplus to address declining reserves and future budget challenges. The Clean Energy fund will propose a reserve policy in the future as a formal policy has yet to be established being the enterprise is in its infancy stage.
Staff developed and presented balancing strategies as part of the FY2022 budget process to minimize the use of reserves and a plan for replenishment, as per Resolution 12-066.
Fiscal Year 2022 Interim Financial Statements
For The Twelve Months Ended June 30, 2022 (100% of Year Elapsed) 14 Interdepartmental Services Operating Fund Revenues and Expenses The City has established internal service funds for centralized services that provide support across most or all funds and departments. These functions primarily include fleet, facilities, risk management, and information technology. The interim quarterly reports would typically not discuss in detail major changes in the City’s internal services departments and funds as major changes typically do not occur during the year.
Self-Insurance Fund (SIF)
The City purchases insurance policies to cap its exposure to loss for specific hazards. The SIF accumulates revenues through an annual allocation from departments as an expenditure to each department. The SIF then pays for the program’s annual renewals for insurance coverage, claims that may need to be paid during the fiscal year, and the staff administering the programs.
The SIF has experienced financial challenges in recent years. The annual allocations coming into the SIF from departments has remained relatively flat because of the budgetary challenges facing the City’s General Fund and other funds. The cost to the City to retain the existing property, excess general liability, and other insurance programs has increased substantially over the years. Liability coverage has become more expensive across the nation due to recent large losses from law enforcement and other claims. And property coverage has become more expensive due to insurance companies factoring in increased costs due to recent droughts and wildfires in the Western United States and California, in particular.
The most recent actuarial report recommended that the City have an $18.3 Million reserve balance in the SIF to be able to continue to fund the City’s existing insurance program and cover reasonably anticipated claim activities. The FY2022 budget assumed an ending fund balance of $7.5 Million in the SIF, but the revised projection for yearend indicates the ending reserve will be lower by $1 Million resulting in an ending fund balance of $6.5 Million.
On November 16, 2021, staff presented an overview to the Finance Committee regarding major changes anticipated in the insurance industry, budget considerations for FY2022 and FY2023, and substantial increases to operating department allocations into the SIF to ensure ongoing premium and claim payment costs can be met and adequate reserves can be achieved. The Finance Committee unanimously supported implementing a plan to gradually increase allocations into the SIF over the next nine fiscal years to target achieving reserves at or near the actuarial recommended level. Staff built in these allocation increases into the FY2023 adopted budget.
ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
GENERAL FUND (Fund 1000)
Increase estimated revenues and appropriations to transfer out from the General Fund to the Measure C Capital Fund (3010) for additional Measure C sales tax revenues received. $ 5,836,011.74 5,836,011.74 $ - $ Increased demand for the Youth Activities Summer Fun Program necessitates an increase in estimated revenues and appropriations to meet community demand. $ 37,000 37,000 $ - $ Increase estimated revenue and appropriations in Fire Operations Fund for activity associated with responses to Mutual Aid incidents. $ 405,497 405,497 $ - $
$ - (30,000) $ 30,000 $
$ 26,440 - $ 26,440 $
$ - 56,440 $ (56,440) $
Increase estimated revenues and appropriations for additional Traffic Safety Fund (2300) transfers. $ 4,316 4,316 $ - $ $ - (180,000) $ 180 $ ,000
$ - 180,000 $ (180,000) $
Total General Fund (1000) $ 6,309,264 6,309,264 $ - $
LIBRARY EQUIPMENT FUND (Fund number 1050)
Increase estimated revenues and appropriations to transfer in $180,000 of salary/benefit savings from the General Fund (1000) to the Library Equipment Fund (1050) for critical technology projects to support community needs. $ 180,000 180,000 $ - $ Total Library Equipment Fund (1050) $ 180,000 180,000 $ - $
SPECIAL REVENUE FUNDS
Traffic Safety Fund (2300)
Increase estimated revenues and appropriations to transfer funds to the General Fund (1000) for additional funds received in the Traffic Safety Fund (2300). $ 3,596 3,596 $ - $
Total Traffic Safety Fund (2300) $ 3 3,596 $ - ,596 $
Police SLESF Fund (2320)
Increase revenues and approriations by $11,486 to adjust to the final amount received from the State for COPS SLESF. 11,486 $ 11,486 $ - $ Total Police SLESF Fund (2320) $ 11,486 11,486 $ - $
Streets Operating Fund (2400)
Increase appropriations to transfer funds to the Downtown Parking Fund (5300). This is needed to reimburse the Downtown Parking Fund staffing costs related to the Oversized Vehicle Program (OSV). $ - 5,644 $ (5,644) $ Appropriate $46,079 to transfer from Streets Operating Reserves to fund the contract for traffic modeling services to update the City's Traffic Model and forecast future traffic patterns. $ - 46,079 $ (46,079) $ Total Streets Operating Fund (2400) $ - 51,723 $ (51,723) $ FEMA Hazard Mitigation Fund (2710)
Increase estimated revenues and appropriations to transfer in $69,800 from the Desalination Facility project in the Water Capital Fund (5010) to the FEMA Hazard Mitigation Fund (2710) to cover contracted engineering services for the project. $ 69,800 69,800 $ - $ Total FEMA Hazard Mitigation Fund (2710) $ 69,800 69,800 $ - $ Reduce appropriations to transfer out $180,000 of salary/benefit savings from the General Fund (1000) to the Library Equipment Fund (1050) for critical technology projects to support community needs.
City of Santa Barbara
Fiscal Year 2022 Financial Statements for the Twelve Months Ending Jun 30, 2022 Proposed Budget Adjustments
Reduce estimated appropriations by $30,000 and increase estimated revenue by 26,439.75 to transfer unused appropriation for contractual services and the offset revenue increase in the General Fund (1000) to the Capital Outlay Fund (3000).
ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
SPECIAL REVENUE FUNDS (Continued)
Community Development Miscellaneous Grants Fund (2810)
Increase in revenue and appropriations in the Community Development Miscellaneouse Grants Fund by $9,500. This entry programs an additional $9,500 in REAP Grant Funds. The City received a REAP grant in the amount of $499K with a period of activity from 1/1/21 through 9/30/23. The grant has been programmed as needed and this budget request adds necessary funding for continued use of interns and an allocation for grant related advertising, supplies, and other miscellaneous expenditures.
$ 9,500 9,500 $ - $
Total Community Development Miscellaneous Grants Fund (2810) 9,500 $ 9,500 $ - $ Library Miscellaneous Grants Fund (2850)
Increase estimated revenue and appropriations as the California State Library awarded the Library $5,000 for books and materials to support outdoor activities and to be used in conjunction with visits to State Parks. $ 5,000 5,000 $ - $ Increase estimated revenue and appropriations as the Santa Barbara Public Library Foundation awarded the Library with a $5,000 grant funded by the Louise M. Labarere Fund, to support collections on the LOTG Van. $ 5,000 5,000 $ - $ Increase estimated revenue and appropriations as the Friends of the Central Library gave the Library an additional $19,264 contribution to support Library programs and supplies. $ 19,264 19,264 $ - $ Increase in estimated revenue and appropriation as the Santa Barbara Foundation awarded the Library with a workforce development grant to host a series of job fairs in the community. $ 16,760 16,760 $ - $ Increase estimate revenue and appropriations as the Friends of the Eastside Library gave the Library an additional $1,653 contribution to support Library programs and supplies. $ 1,653 1,653 $ - $ Total Library Miscellaneous Grants Fund (2850) 47,677 $ 47,677 $ - $ Parks and Recreation Miscellaneous Grants Fund (2860)
Increase estimated revenue and appropriations to receive a miscellaneous grant for upkeep of Alice Keck Park Memorial Gardens. $ 130,000 130,000 $ - $
Total Parks and Recreation Miscellaneous Grants Fund (2860) 130,000 $ 130,000 $ - $ Capital Outlay Fund (3000)
Increase estimated revenues and appropriations for Band Shell Renovation from SB Beautiful. 10,000 $ 10,000 $ - $ Increase estimated revenue for technology fees in the General Fund (1000) transferred to the Capital Outlay Fund (3000) to support furture technology needs and upgrades. $ 56,440 - $ 56,440 $ Total Capital Outlay Fund (3000) $ 66,440 10,000 $ 56,440 $ Measure C Capital Fund (3010)
Increase estimated revenues to transfer in from the General Fund (1000) to the Measure C Capital Fund for additional - $ 5,836,011.74 $ 5,836,012 $ Total Measure C Capital Fund (3010) $ 5,836,012 - $ 5,836,012 $ Streets Capital Fund (3400)
$ - (10,000) $ 10,000 $
$ - 10,000 $ (10,000) $
Total Streets Capital Fund (3400) $ - - $ - $
Streets Grant Capital Fund (3410)
Increase estimated revenues and appropriations by $387,243 for federal grant funding for the environmental mitigation & monitoring of the Quinientos Bridge Replacement Project. $ 387,243 387,243 $ - $ Increase estimated revenues and appropriations by $21,994 for federal grant funding for additional Preliminary Engineering and Right of Away phase for the Bath Street Crossing Enhancement. $ 21,994 21,994 $ - $ Total Streets Grant Capital Fund (3410) $ 409,237 409,237 $ - $ Reduce appropriations to transfer out $10,000 from the Mission Creek Flood Control project in the Streets Capital Fund (3400) to the Gutierrez Street Bridge Replacement project in the Measure A Capital Fund (3440) to cover additional the approved contract services. The Streets Capital account has available funds as the project is close to completion and has scope of work savings.
ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
SPECIAL REVENUE FUNDS (Continued)
Measure A Capital Fund (3440)
Increase estimated revenues and appropriations to transfer in $10,000 from the Mission Creek Flood Control project in the Streets Capital Fund (3400) to the Gutierrez Street Bridge Replacement project in the Measure A Capital Fund (3440) to cover the approved contract services.
$ 10,000 10,000 $ - $
Total Measure A Capital Fund (3440) $ 10,000 10,000 $ - $
ENTERPRISE FUNDS
Water Capital Fund (5010)
$ - (69,800) $ 69,800 $
$ - 69,800 $ (69,800) $
Total Water Capital Fund (5010) $ - - $ - $
Downtown Parking Operating Fund (5300)
Increase estimated revenue to transfer in funds from the Streets Operating Fund (3400) to reimburse staffing costs related to the Oversized Vehicle Program (OSV). $ 5,644 - $ 5,644 $ Total Downtown Parking Operating Fund (5300) $ 5,644 - $ 5,644 $ SB Clean Energy Fund (5500)
$ 3,795,892 - $ 3,795,892 $
$ - 5,364,740 $ (5,364,740) $
Total SB Clean Energy Fund (5500) $ 3,795,892 5,364,740 $ (1,568,848) $ Golf Course Fund (5600)
Increase estimated revenue and appropriations as the golf course received more revenues to transfer to the Golf Course Capital Fund (5610). $ 8,293 8,293 $ - $
Total Golf Course Fund (5600) $ 8,293 8,293 $ - $
Golf Course Capital Fund (5610)
Increase estimated revenue and appropriations as the Golf Course Fund (5600) transferred more funds to purchase equipment. $ 8,293 8,293 $ - $
Total Golf Course Capital Fund (5610) $ 8,293 8,293 $ - $ Airport Operating Fund (5700)
Appropriate $198,580 to transfer from Airport Operating Fund Reserves (5700) to the Airport Capital Fund (5710) to assist in the purchase of a new telescopic handler lift and to cover additional costs in the Asbestos Removal Project. $ - 198,580 $ (198,580) $ $ - (24,315) $ 24,315 $
$ - 24,315 $ (24,315) $
Increase appropriations by $215,000 from Airport Operating Reserves to fund one year of contracted TSA Queing Support due to a lack of hourly applicants. $ - 215,000 $ (215,000) $ Increase appropriations to transfer funds from the Airport Operating Fund (5700) to the Airport Capital Fund (5710) for the purchase of the Two Way Radios Replacement project. $ - 95,855 $ (95,855) $ Total Airport Operating Fund (5700) $ - 509,435 $ (509,435) $ Reduce appropriations to transfer out $69,800 from the Desalination Facility project in the Water Capital fund (5010) to the FEMA Fund (2710) to cover contracted engineering services for the HMGP-Desalination Pump Platform Hardening project.
Increase in estimated revenue and appropriations in the SB Clean Energy Fund (5500) due to a higher participation rate and a global ramp up in energy prices. The adopted budget included $2.3 million more in estimated revenues than appropriations. After this adjustment, $0.7 million more of estimated revenues than appropriations will be budgeted.
Reduce appropriations to transfer out $24,315 from the Airport Operating Fund (5700) to the Airport Capital Fund (5710) to replace water meter.
ATTACHMENT 3
Increase
Increase (Decrease) in Addition to
(Decrease) in Estimated (Use of)
Appropriations Revenues Reserves
ENTERPRISE FUNDS (Continued)
Airport Capital Fund (5710)
Increase estimated revenues and appropriations by $198,580 from a transfer from Airport Operating Fund Reserves (5700) to the Airport Capital Fund (5710) to assist in the purchase of a new telescopic handler lift and to cover additional costs in the Asbestos Removal Project.
$ 198,580 198,580 $ - $
Increase estimated revenues and appropriations by $24,315 by a transfer from Airport Operating Fund (5700) to the Airport Capital Fund (5710) to replace water meter. $ 24,315 24,315 $ - $ $ - (500,000) $ 500,000 $
$ - 500,000 $ (500,000) $
Increase estimated revenue to transfer in funds from the Airport Operating Fund (5700) to the Airport Capital Fund (5710) for the purchase of the Two Way Radios Replacement project. $ 95,855 - $ 95,855 $ Total Airport Capital Fund (5710) $ 318,750 222,895 $ 95,855 $ Airport Customer Facility Charge Fund (5740)
Increase appropriations by $30,000 from the Customer Facility Charge Fund Reserves for audit requirements to restart $10 per contract customer facility charge. $ - 30,000 $ (30,000) $ Total Airport Customer Facility Charge Fund (5740) 30,000 $ - $ (30,000) $
INTERNAL SERVICE FUNDS
Self Insurance Trust Fund (6100)
Increase appropriations for property insurance premium increase in FY2022 compared to the adopted budget. 257,000 $ - $ (257,000) $ Total Self Insurance Trust Fund (6100) $ - 257,000 $ (257,000) $ Reprogram existing appropriations of $500,000 from the Airport Parking Revenue Control project to fund the purchase of two EV Parking Shuttle Busses to replace the shuttle vans currently rented to transport terminal employees and passengers to the Economy Parking lot.
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: September 27, 2022
TO: Mayor and Councilmembers
FROM: Treasury Division, Finance Department
SUBJECT: August 2022 Investment Report
RECOMMENDATION:
That Council Accept the August 2022 Investment Report.
DISCUSSION:
The attached investment report includes Investment Activity, Interest Revenue, a Summary of Cash and Investments, and Investment Portfolio detail as of August 31, 2022.
ATTACHMENT: August 2022 Investment Report
PREPARED BY: Salvatore Parrilla, Finance Analyst
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 8
File Code No. 260.02
INVESTMENT ACTIVITY INVESTMENT INCOME
PURCHASES OR DEPOSITS POOLED INVESTMENTS
8/30 FFCB 3,000,000 $ Interest Earned on Investments 284,940 $ Amortization 15,064
Total 3,000,000 $ Total 300,004 $
SALES, MATURITIES, CALLS OR WITHDRAWALS
8/31 USTN (2,000,000) $
Total (2,000,000) $
ACTIVITY TOTAL 1,000,000 $ INCOME TOTAL 300,004 $
CITY OF SANTA BARBARA
Activity and Interest Report
August 31, 2022
ATTACHMENT
1 ENDING BALANCE AS OF July 31, 2022
Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityMUFG Union Bank NA Checking Account 34,145,529 $ 0.580% 11.28% 1 (1) State of California LAIF 55,000,000 1.090% 18.17% 1 (2)Treasury Securities 55,654,842 1.144% 18.38% 886Federal Agency Issues - Coupon 127,979,859 1.339% 42.28% 1,048Corporate/Medium Term Notes 16,979,321 2.185% 5.61% 576Supranationals Obligations 12,965,653 0.701% 4.28% 871
1.192% 100.00% 676 302,725,204
Totals and Averages $ 1.192% 100.00% 676 302,725,204
Total Cash and Investments 302,725,204 $
NET CASH AND INVESTMENT ACTIVITY FOR August 2022 5,590,801 $ ENDING BALANCE AS OF August 31, 2022 Yield to Percent Average
Book Maturity of Days to
Description Value (365 days) Portfolio MaturityMUFG Union Bank NA Checking Account 38,735,935 $ 0.580% 12.56% 1 (1) State of California LAIF 55,000,000 1.276% 17.84% 1 (2)Treasury Securities 53,664,568 1.122% 17.41% 887Federal Agency Issues - Coupon 130,966,070 1.388% 42.48% 1,022Corporate/Medium Term Notes 16,981,210 2.185% 5.51% 545Supranationals Obligations 12,968,223 0.701% 4.21% 840
1.235% 100.00% 654 308,316,005
Totals and Averages $ 1.235% 100.00% 654 308,316,005
Total Cash and Investments 308,316,005 $
Note: (1) Earnings Credit Rate (ECR) is provided at the rate of 0.580% by MUFG Union Bank, N.A. to help offset banking fees. (2) The average life of the LAIF portfolio as of August 31, 2022 is 304 days.
CITY OF SANTA BARBARA
Summary of Cash and Investments
August 31, 2022
2 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS LOCAL AGENCY INVESTMENT FUNDSLOCAL AGENCY INVESTMENT FUND - - - - 1.276 1.276 55,000,000.00 55,000,000.00 55,000,000.00 0.00 Subtotal, LAIF 55,000,000.00 55,000,000.00 55,000,000.00 0.00TREASURY SECURITIES - COUPONU S TREASURY NOTE 05/03/19 04/30/24 Aaa AA+ 2.250 2.342 2,000,000.00 1,997,130.39 1,960,700.00 (36,430.39)U S TREASURY NOTE 01/22/20 02/28/23 Aaa AA+ 1.500 1.527 2,000,000.00 1,999,739.35 1,982,900.00 (16,839.35)U S TREASURY NOTE 01/22/20 06/30/23 Aaa AA+ 1.375 1.534 2,000,000.00 1,997,443.23 1,966,560.00 (30,883.23)U S TREASURY NOTE 01/12/21 09/15/23 Aaa AA+ 0.125 0.185 3,000,000.00 2,998,134.24 2,898,270.00 (99,864.24)U S TREASURY NOTE 01/21/21 10/31/22 Aaa AA+ 0.125 0.118 3,000,000.00 3,000,032.55 2,987,490.00 (12,542.55)U S TREASURY NOTE 02/12/21 07/31/25 Aaa AA+ 0.250 0.380 3,000,000.00 2,988,755.18 2,732,340.00 (256,415.18)U S TREASURY NOTE 06/02/21 05/31/25 Aaa AA+ 0.250 0.553 2,000,000.00 1,983,563.70 1,831,020.00 (152,543.70)U S TREASURY NOTE 06/02/21 12/31/25 Aaa AA+ 0.375 0.700 2,000,000.00 1,978,735.82 1,805,240.00 (173,495.82)U S TREASURY NOTE 09/03/21 06/30/25 Aaa AA+ 0.250 0.575 2,000,000.00 1,981,847.58 1,827,420.00 (154,427.58)U S TREASURY NOTE 09/24/21 04/30/25 Aaa AA+ 0.375 0.663 2,000,000.00 1,984,858.73 1,842,420.00 (142,438.73)U S TREASURY NOTE 09/24/21 05/31/26 Aaa AA+ 0.750 0.878 2,000,000.00 1,990,625.00 1,810,400.00 (180,225.00)U S TREASURY NOTE 09/24/21 07/31/26 Aaa AA+ 0.625 0.900 2,000,000.00 1,978,980.79 1,794,540.00 (184,440.79)U S TREASURY NOTE 10/08/21 08/31/26 Aaa AA+ 0.750 1.004 2,000,000.00 1,980,224.06 1,800,160.00 (180,064.06)U S TREASURY NOTE 10/08/21 09/30/26 Aaa AA+ 0.875 1.015 2,000,000.00 1,988,858.81 1,806,800.00 (182,058.81)U S TREASURY NOTE 01/18/22 04/15/24 Aaa AA+ 0.375 1.040 3,000,000.00 2,968,124.49 2,853,060.00 (115,064.49)U S TREASURY NOTE 01/12/22 04/30/26 Aaa AA+ 0.750 1.450 3,000,000.00 2,925,704.47 2,721,210.00 (204,494.47)U S TREASURY NOTE 01/18/22 01/15/25 Aaa AA+ 1.125 1.210 3,000,000.00 2,994,073.00 2,839,440.00 (154,633.00)U S TREASURY NOTE 01/31/22 01/31/24 Aaa AA+ 0.875 1.145 3,000,000.00 2,988,689.30 2,891,610.00 (97,079.30)U S TREASURY NOTE 02/28/22 02/29/24 Aaa AA+ 1.500 1.548 2,000,000.00 1,998,599.52 1,942,660.00 (55,939.52)U S TREASURY NOTE 02/28/22 11/30/26 Aaa AA+ 1.625 1.863 2,000,000.00 1,980,735.35 1,861,020.00 (119,715.35)U S TREASURY NOTE 03/15/22 03/15/25 Aaa AA+ 1.750 1.827 3,000,000.00 2,994,327.63 2,874,600.00 (119,727.63)U S TREASURY NOTE 03/17/22 05/31/24 Aaa AA+ 2.000 2.006 2,000,000.00 1,999,776.78 1,950,540.00 (49,236.78)U S TREASURY NOTE 03/17/22 12/31/26 Aaa AA+ 1.750 2.170 2,000,000.00 1,965,608.22 1,869,140.00 (96,468.22) Subtotal, Treasury Securities 54,000,000.00 53,664,568.19 50,849,540.00 (2,815,028.19)FEDERAL AGENCY ISSUES - COUPONFED AGRICULTURAL MTG CORP 05/09/19 04/03/23 - - 2.360 2.371 2,000,000.00 1,999,879.20 1,988,060.00 (11,819.20)FED AGRICULTURAL MTG CORP 02/12/20 02/12/24 - - 1.390 1.480 2,000,000.00 1,997,474.60 1,941,400.00 (56,074.60)FED AGRICULTURAL MTG CORP 03/02/21 09/22/25 - - 0.480 0.480 3,000,000.00 3,000,000.00 2,717,700.00 (282,300.00) Callable 09/22/23, Q FED AGRICULTURAL MTG CORP 06/09/22 08/20/24 - - 2.910 2.911 3,000,000.00 3,000,000.00 2,945,370.00 (54,630.00) Callable 06/09/23, QFEDERAL FARM CREDIT BANK 01/31/19 10/23/23 Aaa AA+ 2.650 2.670 2,000,000.00 1,999,583.64 1,980,620.00 (18,963.64) FEDERAL FARM CREDIT BANK 06/27/19 12/12/22 Aaa AA+ 1.875 1.830 2,000,000.00 2,000,241.75 1,994,980.00 (5,261.75)FEDERAL FARM CREDIT BANK 06/15/21 06/15/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,802,740.00 (197,260.00) Callable, P FEDERAL FARM CREDIT BANK 05/06/21 05/06/25 Aaa AA+ 0.710 0.710 2,000,000.00 2,000,000.00 1,846,240.00 (153,760.00) Callable, PFEDERAL FARM CREDIT BANK 09/08/21 09/08/26 Aaa AA+ 0.870 0.870 2,000,000.00 2,000,000.00 1,790,480.00 (209,520.00) Callable 09/08/22, PFEDERAL FARM CREDIT BANK 12/16/21 07/02/24 Aaa AA+ 0.570 0.873 3,000,000.00 2,983,547.16 2,832,720.00 (150,827.16) Callable, PFEDERAL FARM CREDIT BANK 12/23/21 06/23/25 Aaa AA+ 1.170 1.170 3,000,000.00 3,000,000.00 2,794,110.00 (205,890.00) Callable, PFEDERAL FARM CREDIT BANK 12/22/21 06/22/26 Aaa AA+ 1.390 1.390 3,000,000.00 3,000,000.00 2,752,290.00 (247,710.00) Callable, PFEDERAL FARM CREDIT BANK 01/27/22 01/26/27 Aaa AA+ 1.780 1.780 3,000,000.00 3,000,000.00 2,772,090.00 (227,910.00) Callable 01/26/23, PFEDERAL FARM CREDIT BANK 02/16/22 02/16/27 Aaa AA+ 2.180 2.180 3,000,000.00 3,000,000.00 2,801,730.00 (198,270.00) Callable 02/16/24, PFEDERAL FARM CREDIT BANK 08/30/22 02/25/26 Aaa AA+ 3.320 3.470 3,000,000.00 2,985,343.64 2,979,420.00 (5,923.64) FEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.580 0.580 3,000,000.00 3,000,000.00 2,694,780.00 (305,220.00) Callable 10/28/22, Q FEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.700 0.610 3,000,000.00 3,000,000.00 2,733,690.00 (266,310.00) FEDERAL HOME LOAN BANK 01/28/21 01/28/26 Aaa AA+ 0.750 0.650 3,000,000.00 3,000,000.00 2,738,460.00 (261,540.00)FEDERAL HOME LOAN BANK 02/25/21 11/25/25 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,701,680.00 (298,320.00) Callable 02/25/23, A
QUALITY RATING
CITY OF SANTA BARBARA
Investment Portfolio
August 31, 2022
3 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS
QUALITY RATING
CITY OF SANTA BARBARA
Investment Portfolio
August 31, 2022
FEDERAL HOME LOAN BANK 03/16/21 03/16/26 Aaa AA+ 0.500 0.798 2,000,000.00 2,000,000.00 1,805,580.00 (194,420.00) S/U 0.50-1.00%, Callable 09/16/22 - Q FEDERAL HOME LOAN BANK 05/20/21 05/20/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,809,380.00 (190,620.00) Callable 11/20/22, Q FEDERAL HOME LOAN BANK 05/26/21 12/26/25 Aaa AA+ 0.900 0.900 3,000,000.00 3,000,000.00 2,731,080.00 (268,920.00) Callable 11/26/22, QFEDERAL HOME LOAN BANK 05/26/21 11/26/24 Aaa AA+ 0.550 0.550 2,000,000.00 2,000,000.00 1,862,500.00 (137,500.00) Callable 11/26/22, QFEDERAL HOME LOAN BANK 06/10/21 06/10/25 Aaa AA+ 0.690 0.690 2,000,000.00 2,000,000.00 1,837,120.00 (162,880.00) Callable 09/10/22, QFEDERAL HOME LOAN BANK 06/10/21 06/10/26 Aaa AA+ 1.000 1.000 2,000,000.00 2,000,000.00 1,807,000.00 (193,000.00) Callable 09/10/22, QFEDERAL HOME LOAN BANK 06/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,844,760.00 (155,240.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 09/23/21 10/23/24 Aaa AA+ 0.470 0.470 2,000,000.00 2,000,000.00 1,864,900.00 (135,100.00) Callable 09/23/22, QFEDERAL HOME LOAN BANK 09/28/21 03/28/25 Aaa AA+ 0.600 0.600 2,000,000.00 2,000,000.00 1,844,760.00 (155,240.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 09/28/21 09/28/26 Aaa AA+ 0.900 0.900 2,000,000.00 2,000,000.00 1,786,940.00 (213,060.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 10/28/21 10/28/26 Aaa AA+ 0.625 1.122 2,000,000.00 2,000,000.00 1,809,000.00 (191,000.00) S/U 1.25% on 10/28/22, 1xFEDERAL HOME LOAN BANK 12/28/21 06/28/24 Aaa AA+ 0.920 0.920 3,000,000.00 3,000,000.00 2,849,340.00 (150,660.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 12/28/21 02/28/25 Aaa AA+ 1.125 1.125 3,000,000.00 3,000,000.00 2,810,580.00 (189,420.00) Callable 09/28/22, QFEDERAL HOME LOAN BANK 12/29/21 12/29/23 Aaa AA+ 0.700 0.700 3,000,000.00 3,000,000.00 2,878,860.00 (121,140.00) Callable, PFEDERAL HOME LOAN BANK 12/30/21 12/30/24 Aaa AA+ 1.000 1.000 3,000,000.00 3,000,000.00 2,822,400.00 (177,600.00) Callable, PFEDERAL HOME LOAN BANK 01/26/22 01/26/27 Aaa AA+ 1.125 1.788 3,000,000.00 3,000,000.00 2,769,660.00 (230,340.00) Callable 01/26/24, S/U 1.125%-2.250%FEDERAL HOME LOAN BANK 02/28/22 05/28/24 Aaa AA+ 1.450 1.450 3,000,000.00 3,000,000.00 2,882,430.00 (117,570.00) Callable 02/28/23, 1xFEDERAL HOME LOAN BANK 03/29/22 03/29/27 Aaa AA+ 2.375 2.375 3,000,000.00 3,000,000.00 2,812,200.00 (187,800.00) Callable 03/29/23, QFEDERAL HOME LOAN BANK 04/21/22 04/21/26 Aaa AAA 3.000 3.000 2,000,000.00 2,000,000.00 1,969,820.00 (30,180.00) Callable 04/21/23, AFEDERAL HOME LOAN BANK 04/25/22 04/25/25 Aaa AA+ 2.750 2.750 2,000,000.00 2,000,000.00 1,955,660.00 (44,340.00) Callable 04/25/23, 1xFEDERAL FARM CREDIT BANK 05/26/22 05/26/26 Aaa AA+ 3.375 3.375 3,000,000.00 3,000,000.00 2,944,110.00 (55,890.00) Callable 05/26/23, PFEDERAL HOME LOAN MTG CORP 11/25/20 11/25/25 Aaa AA+ 0.625 0.625 3,000,000.00 3,000,000.00 2,716,920.00 (283,080.00) Callable 11/25/22, AFEDERAL HOME LOAN MTG CORP 11/24/20 11/24/23 Aaa AA+ 0.320 0.320 3,000,000.00 3,000,000.00 2,874,930.00 (125,070.00) Callable 11/24/22, QFEDERAL HOME LOAN MTG CORP 09/09/20 12/09/24 Aaa AA+ 0.500 0.500 3,000,000.00 3,000,000.00 2,790,420.00 (209,580.00) Callable 09/09/22, QFEDERAL HOME LOAN MTG CORP 06/22/22 03/22/24 Aaa AA+ 2.750 2.751 4,000,000.00 4,000,000.00 3,950,360.00 (49,640.00) Callable 06/22/23, 1xFEDERAL HOME LOAN MTG CORP 06/23/22 06/23/27 Aaa AA+ 3.500 3.500 3,000,000.00 3,000,000.00 2,952,210.00 (47,790.00) Callable 12/23/22, QFEDERAL HOME LOAN MTG CORP 06/28/22 06/28/24 Aaa AA+ 3.050 3.050 4,000,000.00 4,000,000.00 3,958,720.00 (41,280.00) Callable 09/28/22, QFEDERAL NATL MORTGAGE ASSN 08/17/20 08/17/23 Aaa AA+ 0.310 0.310 3,000,000.00 3,000,000.00 2,900,940.00 (99,060.00) Callable 11/17/2022, QFEDERAL NATL MORTGAGE ASSN 08/26/20 08/26/25 Aaa AA+ 0.600 0.600 4,000,000.00 4,000,000.00 3,645,160.00 (354,840.00) Callable 11/26/22, QFEDERAL NATL MORTGAGE ASSN 11/17/20 05/17/24 Aaa AA+ 0.375 0.375 3,000,000.00 3,000,000.00 2,833,470.00 (166,530.00) Callable 11/17/2022, Q Subtotal, Federal Agencies 131,000,000.00 130,966,069.99 123,129,770.00 (7,836,299.99) SUPRANATIONAL OBLIGATIONSINTERNATIONAL BANK FOR RECONST 01/22/21 10/28/25 Aaa AAA 0.500 0.500 3,000,000.00 3,000,000.00 2,724,000.00 (276,000.00)INTERNATIONAL FINANCE CORP 02/22/21 08/22/24 Aaa AAA 0.250 0.255 3,000,000.00 2,999,712.21 2,802,690.00 (197,022.21)INTERNATIONAL FINANCE CORP 03/23/21 03/23/26 Aaa AAA 0.750 0.805 2,000,000.00 1,996,154.00 1,806,680.00 (189,474.00)INTERNATIONAL FINANCE CORP 06/03/21 07/16/25 Aaa AAA 0.375 0.621 2,000,000.00 1,986,041.81 1,827,320.00 (158,721.81)INTERNATIONAL FINANCE CORP 03/14/22 03/20/23 Aaa AAA 0.500 1.334 3,000,000.00 2,986,314.67 2,953,500.00 (32,814.67) Subtotal, Supranationals 13,000,000.00 12,968,222.69 12,114,190.00 (854,032.69)CORPORATE/MEDIUM TERM NOTESAPPLE INC 04/23/19 05/03/23 Aaa AA+ 2.400 2.718 2,000,000.00 1,995,974.46 1,986,220.00 (9,754.46)APPLE INC 09/11/19 09/11/24 Aaa AA+ 1.800 1.903 2,000,000.00 1,996,033.67 1,934,560.00 (61,473.67)APPLE INC 02/17/21 02/08/26 Aaa AA+ 0.700 0.705 3,000,000.00 2,999,481.99 2,710,680.00 (288,801.99)BERKSHIRE HATHAWAY INC 04/05/18 03/15/23 Aa2 AA 2.750 3.016 2,000,000.00 1,997,353.75 1,996,480.00 (873.75)MICROSOFT CORP 05/23/19 08/08/23 Aaa AAA 2.000 2.535 2,000,000.00 1,990,546.20 1,970,980.00 (19,566.20)TOYOTA MOTOR CREDIT 07/27/18 07/20/23 A1 A 3.419 3.392 2,000,000.00 2,000,434.11 1,997,100.00 (3,334.11)TOYOTA MOTOR CREDIT 06/14/19 09/08/22 A1 A 2.150 2.182 2,000,000.00 1,999,987.97 1,999,740.00 (247.97)TOYOTA MOTOR CREDIT 03/16/20 02/13/25 A1 A 1.800 1.770 2,000,000.00 2,001,397.62 1,900,500.00 (100,897.62) Subtotal, Corporate Securities 17,000,000.00 16,981,209.77 16,496,260.00 (484,949.77) 4 PURCHASE MATURITY STATED YIELD AT FACE BOOK MARKET BOOK DESCRIPTION DATE DATE MOODY'S S & P RATE 365 VALUE VALUE VALUE GAIN/(LOSS) COMMENTS
QUALITY RATING
CITY OF SANTA BARBARA
Investment Portfolio
August 31, 2022
CHECKING ACCOUNTMUFG UNION BANK NA CHKNG ACCNT - - - - 0.580 0.580 38,735,934.59 38,735,934.59 38,735,934.59 0.00 Subtotal, Checking Account 38,735,934.59 38,735,934.59 38,735,934.59 0.00TOTALS 308,735,934.59 308,316,005.23 296,325,694.59 (11,990,310.64) Market values have been obtained from the City's safekeeping agent, MUFG Union Bank, N.A. - The Private Bank (UBTPB). 5 5
1.235
3.450
2.960
1.276
-
0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Aug'21
($0.138)
Sep'21
($0.360)
Oct'21
($0.720)
Nov'21
($0.281)
Dec'21
($0.351)
Jan'22
($1.550)
Feb'22
($1.074)
Mar'22
($3.641)
Apr'22
($1.858)
May'22
$0.955
Jun'22
($1.429)
Jul'22
$1.042
Aug'22
($3.198)
INVESTMENT YIELDS
City Portfolio 2-Year USTN90-Day T-Bill LAIF Rate
Monthly Change
in Market
Gain/Loss
(in Millions)
Yield - %
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: September 27, 2022
TO: Mayor and Councilmembers
FROM: Information Technology Department
SUBJECT: Agreement with Rock Solid Technology, Inc. for Constituent Relationship Management and Public Records Act Request Software [Agreement]
RECOMMENDATION:
That Council authorize the Information Technology Director to execute a Master Customer Agreement contract with Rock Solid Technology, Inc. in the amount of $383,402, for constituent relationship management and Public Records Act software to include licensing, maintenance, support, and implementation services and authorize the Information Technology Director to approve expenditures of up to $1,650 for extra services that may result from necessary changes in the scope of work.
DISCUSSION:
Constituent relationship management (CRM) software allows the city to see how and why our residents interact with us and brings our departments together to address their needs.
It includes an online website, smartphone app, and backend system through which our constituents can report issues, request services, track service requests, and find cityrelated information. Workflow, analytics, and reporting will help City staff improve service delivery through automation, accountability, and transparency. It will include integration with existing systems, workflow automation, omnichannel communication, and a knowledge base.
Public Records Act (PRA) software allows the city to manage the records and PRA request process. It will reduce time-consuming tasks around records storage and retention, increase compliance, and address audits. It will include an online request and file portal, automated workflow routing, and secure file management.
From May 2019 to July 2020 the City of Santa Barbara began working toward the selection and implementation of a CRM. This included process discovery, needs analysis, review of integrations, software demonstrations, RFP creation, and RFP responses.
Agenda Item No. 9
File Code No. 170.04
Council Agenda Report
Agreement with Rock Solid Technology, Inc. for Constituent Relationship Management and Public Records Act Request Software [Agreement]
September 27, 2022
In May 2020, the city’s website became increasingly unstable. The increasing instability quickly moved from an inconvenience to a liability regarding Brown Act postings, etc. In addition, the website vendor was no longer maintaining, supporting, or updating the product. It was decided to postpone the CRM project and focus resources on the Website Replacement project. The CRM project ended prior to being awarded to a vendor.
In January 2022, Information Technology (IT) started reviewing options to resume the CRM project since the website project was coming to completion. IT reviewed the requirements, which included an online website, smartphone app, and backend system through which our constituents can report issues, request services, track service requests, and find city-related information. The CRM also needed to seamlessly integrate with both Accela (code enforcement) and Cartegraph (work order management).
In addition, the city has an opportunity to improve the Public Records Act process for our constituents. This includes a portal for online requests, automated workflow, and secure file management.
It was determined that Rock Solid Technology, Inc. provided all required functionality for the city. To satisfy competitive bidding requirements, we are utilizing a piggyback contract from the City of Roseville, CA. Roseville issued a request for proposals on February 3, 2022, and awarded the contract to Rock Solid Technology, Inc. on September 9, 2022.
Roseville utilized competitive processes substantially similar to the city.
The expected go-live for the CRM and PRA software is summer 2023.
A copy of the contract may be requested from the Clerk’s Office by contacting [email protected].
BUDGET/FINANCIAL INFORMATION:
The total cost for the proposed agreement is $383,402, which includes one-time implementation costs of $16,500 in the first year, and $366,902 in licensing, maintenance, and support costs over five years.
There are sufficient expenditure appropriations in the Adopted Information Technology Capital Fund Budget in Fiscal Year 2023 to fund both the implementation, licensing, maintenance, and support over the life of the contract with Rock Solid Technology, Inc.
The annual licensing costs for licensing, maintenance, support, and implementation are as follows:
Council Agenda Report
Agreement with Rock Solid Technology, Inc. for Constituent Relationship Management and Public Records Act Request Software [Agreement]
September 27, 2022
Item FY2023 FY2024 FY2025 FY2026 FY2027 Total
Rock Solid
licensing,
maintenance,
support, and
implementation
$82,900 $69,720 $73,206 $76,866 $80,710 $383,402
Payment terms Planned Planned Planned Planned Planned Planned PREPARED BY: Justin Cure, Information Technology Director SUBMITTED BY: Justin Cure, Information Technology Director APPROVED BY: City Administrator's Office
CITY OF SANTA BARBARA
COUNCIL AGENDA REPORT
AGENDA DATE: September 27, 2022
TO: Mayor and Councilmembers
FROM: Community Vitality Initiatives, Community Development Department SUBJECT: Short-Term Rental Permitting Framework
RECOMMENDATION: That Council:
A. Provide direction on a future short-term rental permitting program; and B. Direct staff to draft a short-term rental permitting Ordinance for review by the Planning Commission, Ordinance Committee, Finance Committee, and City Council.
EXECUTIVE SUMMARY:
Short-term rentals are dwelling units rented for a period of 30 days or less. With the advent of online rental platforms like AirBNB, VRBO, and Homeaway, the popularity and prevalence of short-term rentals has dramatically grown in Santa Barbara over the last decade, bringing with it concerns about the loss of long-term housing, nuisance and neighborhood impacts, land use compatibility, real estate speculation, and environmental impacts.
Short-term rentals are currently regulated as hotels and allowed in zones where hotel uses are allowed. The process to convert a residential property to a short-term rental is challenging for many property owners. Enforcement of existing short-term rental regulations is staff-intensive, time-consuming, and especially challenging in the Coastal Zone portion of the city, where they are only regulated based on nuisance related activity.
As a result, many short-term rentals operate illegally.
Staff recommends developing a ministerial short-term rental permitting program that minimizes the change in intensity of use, limits nuisance impacts, preserves long-term housing, and improves staff’s ability to enforce adopted regulations, while limiting administrative costs to the City.
Agenda Item No. 11
File Code No. Code No. 640.09
Council Agenda Report
Short-Term Rental Permitting Framework
September 27, 2022
DISCUSSION:
Why Develop a Short-Term Rental Program
Short-term rentals are dwelling units rented for a period of 30 days or less. With the advent of online rental platforms like AirBNB, VRBO, and Homeaway, the popularity and prevalence of short-term rentals has dramatically grown in Santa Barbara over the last decade, bringing with it code compliance challenges and a variety of concerns that are not comprehensively addressed with existing regulation..
It is estimated that there are currently 1,560 listings on web based rental platforms, which represents 1,119 unique short-term rental units citywide. This represents a 27 percent increase in the number of short-term rentals from the previous year1. Of those, 19 legal establishments and 82 unpermitted establishments are paying transient occupancy tax (TOT) currently.
Short-Term Rental Concerns
In many areas of the City, unregulated short-term rentals operating as quasi-hotels are inherently incompatible with the surrounding land uses and neighborhood due to the intensity of use and potential nuisance impacts related to noise, parking, littering, traffic congestion, public safety, “party houses,” loss of community, and the displacement of long-term residents.
Operating a residential unit as a short-term rental is typically far more lucrative than renting the unit on a long-term basis, which can encourage the loss of long-term housing, increase real estate speculation, and inflate housing costs. Short-term rentals also increase the demand for services and low-income housing because of the associated support network of cleaning and maintenance staff. There is a perception that all visitors, including those using short-term rentals, use more resources and are less concerned with local environmental measures like water conservation.
High demand for short-term rentals, a difficult permitting process given the City’s current hotel-related regulations, and code compliance challenges have resulted in a high number of illegal short-term rentals and uncaptured TOT. Many of the illegal short-term rentals operate as quasi-hotels in areas of the City where hotels are not allowed, which creates inherent equity issues with hotel operators.
Existing Regulations
Short-term rentals are currently considered a hotel use and subject to the standards and laws that dictate where and how a hotel may operate. These regulations were developed 1 Granicus Host Compliance Proprietary Data
Council Agenda Report
Short-Term Rental Permitting Framework
September 27, 2022
prior to the popularity of short-term rentals and are challenging for many residential property owners to meet.
Short-term rentals are only allowed in zones where hotels are allowed. In the inland portion of the City, this includes the Residential Multi-Unit and Hotel (R-MH), Commercial Restricted (C-R), Commercial General (C-G), and Manufacturing Commercial (M-C) zones. In the Coastal Zone portion of the City, this includes the Hotel-Motel-Multiple Residence (R-4), Restricted Commercial (C-L, C-P, and C-1), Commercial (C-2), Commercial Manufacturing (C-M), Hotel and Related Commerce I (HRC-1), Hotel and Related Commerce II (HRC-2), Hotel and Related Commerce II / Ocean-Oriented Commercial (HRC-2/OC), and Light Manufacturing (M-1) zones. A map of these locations is included in Attachment 3.
Short-term rentals are currently considered a non-residential use, and applicants must go through a Change of Use process that varies in complexity based on the number of existing residential units, the amount of square footage converted from residential to nonresidential use, and whether the property is in the Coastal Zone portion of the City.
Projects with more than one unit are subject to the Hotel Conversion Ordinance, which can be a time-consuming and expensive process. Short-term rentals must have a business license, are subject to the square footage limits in the City’s Nonresidential Growth Management Program, must have at least one parking space per bedroom, are not eligible for the residential permit parking program, must comply with zoning setbacks, are subject to the Tenant Displacement Assistance Ordinance, may need to have a separate water meter and pay commercial rates, and may need to go through a discretionary review permitting process. Attachment 4 includes more general information of the existing short-term rental permitting process.
Current Enforcement
Enforcement of short-term rental regulations is currently a staff-intensive and timeconsuming process complicated by low incentives to comply and short-term rental listings that intentionally obfuscate their location and length of stay.
The current enforcement process is primarily complaint-driven and begins in the Community Development Department, where short-term rental cases are a high priority.
Code Compliance Officers (~2.0 FTE) investigate the complaint, conduct online and inperson research, work with property owners to comply with municipal code regulations, and coordinate with the Finance Department and City Attorney’s Office.
Cases that are unable to be resolved by code compliance staff are referred to the City Attorney’s Office. The City Attorney will work with staff to gain compliance. When necessary and supported by the evidence, the City Attorney will file criminal charges for violating the City’s Zoning Ordinance and subpoena the online platform used. When appropriate, the City Attorney will agree to the property owner being placed on Court diversion to ensure compliance with the Municipal Code, which will require the ceasing of the unpermitted use or the seeking of the requisite land use approvals and licenses. In Council Agenda Report
Short-Term Rental Permitting Framework
September 27, 2022
most cases, the property owner will be required to pay all back taxes and fees owed, including interest, as part of the court diversion. There have been 35 cases referred to the City Attorney’s Office.
Enforcement of short-term rental regulations in the Coastal Zone is complicated by a recent court case2 that only allows the City to enforce on nuisance-based complaints, until a new short-term rental program is certified by the California Coastal Commission.
The maximum penalty for violations of the City’s zoning ordinance and for failure to remit transient occupancy taxes are 6 months in jail and/or a fine of $1,000 for each violation.
The maximum administrative fines for unpermitted short-term rentals currently mirror the administrative citation fines for all municipal code violations, which are generally $100 for each violation, $200 for the second violation of the same code section, and $250 for additional violations of the same code section. While these fines may be assessed daily, they are comparatively low to the revenues generated by many short-term rentals.
The time it takes to close a short-term rental enforcement case varies widely, based on the availability of evidence and willingness of property owners to comply with the municipal code. So far this year, 31 cases have been closed. There are 28 active cases under investigation and an additional 25 cases pending investigation. On average, it takes four to nine months for a short-term rental case to be resolved by code compliance staff.
Cases that are referred to the City Attorney’s Office often take at least three additional months. Cases are generally investigated in the order received, and the bulk of current code compliance staff caseload is from 2020 and 2021. Given the existing number of illegal short-term rentals and current enforcement challenges, bringing all unpermitted operators into compliance with the current municipal code will take considerable time.
Recommended Short-Term Rental Permit Program
Staff recommends developing a ministerial short-term rental permitting program that minimizes the change in intensity of use, limits nuisance impacts, preserves long-term housing, and improves staff’s ability to enforce adopted regulations, while limiting administrative costs to the City.
Program Goals
The following are recommended goals for a future short-term rental permit program, which were developed using applicable policy direction and current best practices. • Neighborhood and Community. Ensure that the character of residential neighborhoods and sense of community is maintained while accommodating a reasonable amount of transient use within existing housing units. 2 Kracke v. City of Santa Barbara, 2021
Council Agenda Report
Short-Term Rental Permitting Framework
September 27, 2022
• Land Use Compatibility. Regulate short-term rentals to be compatible with surrounding land uses.
• Property Value and Housing Costs. Regulate short-term rentals to minimize impacts to adjacent property values and City-wide housing costs. • Party House. Ensure that homes are not turned into quasi-hotels or “party houses.” • Nuisance. Minimize public safety risks and the noise, trash, and parking problems often associated with short-term rentals without creating additional work for the police department.
• Housing. Maximize the availability of housing by ensuring that long-term housing stock is not lost to short-term rentals.
• Transient Occupancy and Business License Taxes. Ensure that the City captures all potential transient occupancy and business license taxes and that short-term rentals are taxed similarly to traditional lodging providers to level the playing field and maintain local service jobs.
• Environmental. Ensure that short-term rentals are located outside of hazard areas and require “green” improvements.
• Income Generation. Give residents the ability to generate extra income from shortterm rental of their primary residence, provided that all of the above goals are met. • Compliance. Ensure high compliance with short-term rental regulations and minimize City expenses.
Program Components
Staff recommends regulating short-term rentals under one citywide standard to simplify program administration and enforcement3. Recommended program components are provided as Attachment 1, which is organized by category, includes actions with related goals and concerns addressed, and identifies ordinances from other jurisdictions with similar measures. Program highlights are summarized below.
The recommended program seeks to regulate short-term rentals down to a use that is primarily residential rather than quasi-hotel, and in doing so, allow short-term rentals in all zones that allow residential use. While this would expand the geographic area in which short-term rentals are allowed, the eligibility requirements, operational standards, improved enforcement mechanisms, and other components listed below should decrease the total number of short-term rentals in operation (when considering the high number of existing illegal short-term rentals that are already operating in these areas), reduce neighborhood impacts, increase the availability of long-term housing, and generate TOT for the City.
Residential units would only be eligible for short-term rental if the unit is otherwise occupied by the owner as their primary residence (all rental units would be ineligible), the 3 As discussed in greater detail below, the Coastal Commission will need to certify any future ordinance prior to becoming effective in the Coastal Zone.
Council Agenda Report
Short-Term Rental Permitting Framework
September 27, 2022
unit is not deed-restricted affordable housing or a type of housing that prohibits short-term rental4, the unit is located outside of High Fire Hazard Areas, there were no no-fault evictions within the last five years, and there are no open or pending enforcement cases involving the property.
The short-term rental permitting program would operate on an annual basis with flat fees, performance standards, and on-site inspection. The permit would be issued to a specific person who must have a business license, sign an affidavit stating that they will follow all applicable regulations, retain records for auditing, share the nuisance response plan with neighbors, and post the permit number in all short-term rental listings. The permitting program would not include the Change of Use process that is currently required, which would simplify the process for property owners and the City.
Short-term rentals would be required to follow specific operational standards to limit nuisance impacts, such as:
• Operating no more than 90 nights per year (with a two-night minimum stay) • Maintaining occupancy limits that are based on bedroom count • Having sufficient off-street parking
• Maintaining a nuisance response plan with host-provided 24/7 response • Not allowing special events and commercial activities, like weddings and corporate retreats
• Following quiet hours
• Providing a code-of-conduct to guests and posting an information packet • Only renting out the entire unit to one group of guests at a time • Having low-flow plumbing fixtures
• Having a Stormwater Management Plan Tier 1 improvement Enforcement of short-term rental regulations would be improved and administrative costs to the City would be reduced by contracting with a web monitoring firm that would identify illegal listings, requiring that hosting platforms delist illegal rentals and provide listing information on a monthly basis, and establishing higher fines and penalties to discourage noncompliance.
Short-term rentals would be required to have a surety bond and pay the same TOT as hotel operators, which could be remitted to the City either from the host or directly from hosting platforms. Revenues generated from the permitting program are recommended to be set at a level to achieve cost recovery of the permitting program and associated code compliance efforts.
4 Examples include Accessory Dwelling Units and SB 9 / Urban Lot Split Housing Council Agenda Report
Short-Term Rental Permitting Framework
September 27, 2022
Applicable Policy Direction
The recommended short-term rental permit program was developed with the following policy direction in mind. A robust consistency analysis will be provided with any future short-term rental permit ordinance.
Previous Council Direction
City Council last considered changing short-term rental regulations in 2015. At the June 23, 2015 hearing, Council directed staff to develop a work program to define, regulate, and permit short-term home sharing rentals, which are “hosted” short-term rentals with at least one of the primary residents living on site throughout the stay. Council also directed staff to develop a work program to enforce existing short-term rental regulations.
At the August 11, 2015 hearing, City Council considered work programs for short-term rental enforcement and a short-term home sharing rental ordinance, allocated funding for enforcement, and initiated a Zoning Ordinance amendment to allow short-term home sharing rentals.
At an October 15, 2015 Planning Commission hearing, the Commissioners discussed the opportunities and challenges of regulating short-term home sharing rentals and generally supported pursing a home-sharing ordinance, regulating the program with a planning permit and performance regulations, and requiring that the host be present in the home during the stay. The Commission was concerned about enforcement challenges and the associated administrative costs needed to successfully implement such an ordinance.
At the December 8, 2015 City Council hearing, the Council received an update on the potential short-term home sharing rental ordinance, considered the Planning Commission input, directed staff to provide a memo to Council (Attachment 5) about the process to convert a residential unit to a short-term rental, and ultimately decided not to pursue a home sharing rental ordinance.
General Plan Direction
The City’s General Plan serves as the blueprint for future growth in Santa Barbara. It places a high value on addressing the housing crisis, protecting neighborhoods, maintaining a strong economy with a stable revenue base, protecting the community from natural hazards, and maintaining Santa Barbara as a unique and desirable place to live, work, and visit. The Draft 2023 Housing Element also directs further regulating short-term rentals to increase multi-unit development and prioritize residential development over hotel development. More detailed General Plan direction is provided as Attachment 2.
Coastal Commission Direction
A new short-term rental permitting program will need to be certified by the California Coastal Commission to be effective in the Coastal Zone portion of the City. The Coastal Zone is subject to the California Coastal Act, which requires that public access be protected, provided, and maximized for all. The Coastal Commission considers all Council Agenda Report
Short-Term Rental Permitting Framework
September 27, 2022
overnight accommodations, including short-term rentals, as important visitor-facilities that allow the public to access and recreate at and along the coast. As a result, a blanket ban on short-term rentals is not typically supported by the Coastal Commission. However, the Coastal Commission has historically supported limiting short-term rentals, provided the approach balances local issues and Coastal Act goals. Examples include:
Limiting the total number of short-term rentals in specific areas Limiting the type of housing used for short-term rental Limiting occupancy
Limiting the number of nights a short-term rental may operate Requiring 24/7 management and nuisance response
Requiring on-site parking, garbage, noise, and other operational requirements Requiring Transient Occupancy Tax (TOT) payment
Establishing enforcement protocols
BUDGET/FINANCIAL IMPACT:
Development and processing of a short-term rental permit ordinance will require roughly
0.5 FTE for six months in the Community Development Department, with support from staff in the City Attorney’s Office and Finance Department. Processing a Local Coastal Program amendment to make a future ordinance effective in the Coastal Zone will require an additional 0.5 FTE in the Community Development Department for at least six months to a year. Processing a short-term rental permit ordinance will likely require contractsupport or reassigning Community Development staff from other work efforts and could possibly delay other high-priority projects.
A future short-term rental permit ordinance will likely generate additional Transient Occupancy and Business License Taxes. Permit fees are recommended to be set at a level to ensure cost recovery to administer any future program, which will likely require at least 1.0 FTE in the Community Development Department, with support from staff in the Finance Department and City Attorney’s Office. Updated regulations that reflect modern short-term rental operations, with support from a web-monitoring platform and coordination with hosting platforms, will reduce administrative costs to the City and expand code-compliance staff capacity. Specific budget and financial impact figures will be provided with any future ordinance.
ENVIRONMENTAL REVIEW:
Any future short-term rental permit ordinance will be reviewed for compliance with the California Environmental Quality Act.
ATTACHMENTS: 1. Recommended Short-term Rental Permitting Program Components
2. Applicable Short-term Rental General Plan Direction
Council Agenda Report
Short-Term Rental Permitting Framework
September 27, 2022
3. Map
4. Short Term Vacation Rental Permitting Process
5. Memorandum to Council dated May 10, 2017
PREPARED BY: Timmy Bolton, Project Planner
SUBMITTED BY: Elias Issacson, Community Development Director APPROVED BY: City Administrator’s Office
Short Term Rental License Framework
September 13, 2022
Recommended Short-term Rental Permitting Program Components Category Recommendation Related Goal(s) Concern(s) Addressed Similar Ordinances Eligibility Allow short-term rentals in all
residential zones, subject to the
restrictions listed below
• Neighborhood /
Community
• Property Value /
Housing Costs
• Land Use Compatibility
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• City of Los Angeles
• City of El Paso Robles
• Redwood City
• County of Ventura LCPA
Eligibility Allow short-term rentals only for
primary ownership units
• Neighborhood /
Community
• Income Generation
• Property Value /
Housing Costs
• Housing
• Nuisance
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• City of Berkeley
• City of Santa Fe
• City of Los Angeles
• Redwood City
• City of Emeryville
• City of Oxnard LCPA
(primary residence not
required)
Eligibility Prohibit short-term rentals in high
fire hazard areas
• Environmental
• Nuisance
• Land use compatibility
• Public Safety
Eligibility Prohibit short-term rental of
properties with accessory dwelling
units
• Neighborhood /
Community
• Property Value /
Housing Costs
• Land Use Compatibility
• Compliance
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• Enforcement
• City of Ventura
Eligibility Prohibit short-term rental of deedrestricted Affordable housing units • Neighborhood /
Community
• Property Value /
Housing Costs
• Land Use Compatibility
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• County of Ventura LCPA
• City of Berkeley
• City of Los Angeles
• City of Oxnard LCPA
ATTACHMENT 1
Short Term Rental License Framework
September 13, 2022
Category Recommendation Related Goal(s) Concern(s) Addressed Similar Ordinances Eligibility Prohibit short-term rental of urban lot
split housing
• Neighborhood /
Community
• Property Value /
Housing Costs
• Land Use Compatibility
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• City of Goleta
Eligibility Prohibit short-term rental use within
five years of issuing a no-fault
eviction
• Neighborhood /
Community
• Property Value /
Housing Costs
• Land Use Compatibility
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• City of Berkeley
Eligibility Prohibit license eligibility if the
property has any open or pending
violations from any enforcement
agency of the City
• Neighborhood /
Community
• Nuisance /
neighborhood impacts
• City of Los Angeles
• City of Mountain View
Operation / Site
Requirement
Limit the number of nights a shortterm rental may operate to 90 nights per year, and require two night
minimum stay
• Neighborhood /
Community
• Property Value /
Housing Costs
• Land Use Compatibility
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• City of Mountain View
(60 nights)
• City of Berkeley
(90 nights)
• City of Petaluma
(90 nights)
• City of Emeryville
(90 nights)
• City of Oxnard LCPA
(100 nights)
• Redwood City
(120 nights)
• City of Los Angeles
(120 nights)
Short Term Rental License Framework
September 13, 2022
Category Recommendation Related Goal(s) Concern(s) Addressed Similar Ordinances Operation / Site
Requirement
Limit the occupancy of short-term
rental units to 2 persons + 2 persons
per bedroom, with a 10 person
maximum
• Neighborhood /
Community
• Party House
• Property Value /
Housing Costs
• Land Use Compatibility
• Nuisance
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• County of Ventura LCPA
• City of Carpinteria
• City of Goleta
• City of Ventura
• City of Los Angeles
• City of Petaluma
• City of Oxnard LCPA
Operation / Site
Requirement
Prohibit the use of short-term rentals
for special events and commercial
activities like weddings, corporate
retreats, and photography shoots
• Neighborhood /
Community
• Party House
• Property Value /
Housing Costs
• Land Use Compatibility
• Nuisance
• Loss of housing
• Nuisance /
neighborhood impacts
• Real estate
speculation / inflated
housing costs
• San Bernardino County
• City of Carpinteria
• City of Los Angeles
• City of Mountain View
• Redwood City
Operation / Site
Requirement
Require quiet hours between 10pm
and 7am
• Neighborhood /
Community
• Party House
• Land Use Compatibility
• Nuisance
• Nuisance /
neighborhood impacts
• San Bernadino County
• County of Ventura LCPA
• City of Los Angeles
• City of Oxnard LCPA
Operation / Site
Requirement
Require that short-term rental hosts
provide a code-of conduct to guests
and post the rental agreement,
notifications, emergency numbers,
and disclosures in the unit
• Neighborhood /
Community
• Party House
• Land Use Compatibility
• Nuisance
• Nuisance /
neighborhood impacts
• San Bernardino County
• City of Ventura
• City of Goleta
• City of Hermosa Beach
• City of Carpinteria
• City of Los Angeles
• County of Ventura LCPA
• City of Petaluma
• City of El Paso Robles
• City of Oxnard LCPA
Operation / Site
Requirement
Prohibit a host from renting all, or a
portion of their residence to more
than one group of guests under
more than one booking, at any given
time
• Neighborhood /
Community
• Party House
• Land Use Compatibility
• Nuisance
• Nuisance /
neighborhood impacts
• City of Los Angeles
• City of Petaluma
• City of Oxnard LCPA
Short Term Rental License Framework
September 13, 2022
Category Recommendation Related Goal(s) Concern(s) Addressed Similar Ordinances Operation / Site
Requirement
Require that short-term rentals have
a nuisance response plan with an
on-call person with 24/7 response
and time-period that complaints
must be addressed
• Neighborhood /
Community
• Party House
• Land Use Compatibility
• Nuisance
• Nuisance /
neighborhood impacts
• City of Ventura
• City of Goleta
• San Bernardino County
• County of Ventura
• City of Los Angeles
• City of Petaluma
• City of Paso Robles
• Redwood City
• City of Oxnard LCPA
Operation / Site
Requirement
Require sufficient off-street parking • Neighborhood /
Community
• Nuisance
• Nuisance /
neighborhood impacts
• City of Goleta
• County of Ventura
• City of Santa Fe
• County of Ventura LCPA
• City of Petaluma
• Redwood City
• City of Oxnard LCPA
Operation / Site
Requirement
Require low-flow plumbing fixtures • Environmental • Environmental impact • City of Santa Fe Operation / Site
Requirement
Require SWMP Tier 1 improvements
(existing improvements qualify)
• Environmental • Environmental impact
Permit /
Enforcement
Establish ministerial short-term
rental permitting process with annual
renewal, flat fees, performance
standards, and on-site inspection
• TOT
• Nuisance
• High number of illegal
STRs
• Uncaptured TOT
• Difficult permitting
process
• Nuisance /
neighborhood impacts
• San Bernadino County
• City of Goleta
• City of Ventura
• City of San Diego
• City of Santa Fe
• City of Los Angeles
• City of Petaluma
• City of Mountain View
• Redwood City
• City of Oxnard LCPA
Permit /
Enforcement
Require that the short-term rental
permit be issued to a specific person
(no trusts) and non-transferrable
• Neighborhood /
Community
• Property Value /
Housing Costs
• Real estate
speculation / inflated
housing costs
• City of Santa Fe
• City of San Diego
• City of Carpinteria
• City of Oxnard LCPA
Short Term Rental License Framework
September 13, 2022
Category Recommendation Related Goal(s) Concern(s) Addressed Similar Ordinances Permit /
Enforcement
Require the permit number be
posted in short-term rental listings
• Compliance • Enforcement • City of Ventura
• City of Goleta
• City of Carpinteria
• City of Los Angeles
• City of Petaluma
• City of Oxnard LCPA
Permit /
Enforcement
Require that short-term rental
operators sign an affidavit stating
that they will follow short-term rental
regulations
• Compliance • Enforcement • City of Carpinteria
• City of Mountain View
• City of Oxnard LCPA
Permit /
Enforcement
Require neighbor notification of
permit issuance and nuisance
response plan within 300ft
• Neighborhood /
Community
• Compliance
• Nuisance /
neighborhood impacts
• City of Carpinteria
• City of Ventura
• City of Goleta
• City of Petaluma
• City of Paso Robles
• City of Oxnard LCPA
Permit /
Enforcement
Contract with a web monitoring
platform to identify illegal short-term
rentals
• Compliance • Enforcement • City of Santa Fe
Permit /
Enforcement
Require short-term rental platforms
to share data on a monthly basis
and delist illegal short-term rentals
• Compliance • Enforcement • City of Santa Fe
• City of Los Angeles
Permit /
Enforcement
Require short-term rentals to acquire
a business license and short-term
rental permit
• Compliance • Enforcement • City of Goleta
• City of Ventura
• City of Santa Fe
• City of Petaluma
• City of Mountain View
Permit /
Enforcement
Require short-term rental hosts to
retain records for three years for
audits
• Compliance • Enforcement • San Bernardino County
• City of Santa Fe
• City of Los Angeles
• City of Oxnard LCPA
Short Term Rental License Framework
September 13, 2022
Category Recommendation Related Goal(s) Concern(s) Addressed Similar Ordinances Permit /
Enforcement
Establish fines for illegal operators
high enough to discourage illegal
activity and establish failure to pay
TOT as a misdemeanor
• Compliance
• TOT
• Enforcement • City of Berkeley
• City of Carpinteria
• City of Ventura
• City of Santa Fe
• City of Los Angeles
• City of Mountain view
Revenue Require short-term rental platforms
to directly collect TOT and transfer
to the City on a monthly basis
• TOT • Inequity to hotel
operators
• San Bernardino County
• City of Los Angeles
Revenue Tax short-term rentals with the same
TOT rate as hotels
• TOT • Inequity to hotel
operators
• City of Carpinteria
• City of Goleta
• City of Ventura
• City of Santa Fe
• City of Los Angeles
• City of Petaluma
• City of Mountain View
• Redwood City
Revenue Use short-term rental licensing
revenues as cost-recovery to fund
administration and enforcement
costs
• TOT
• Compliance
• Loss of housing
• Enforcement
•
Revenue Require $1,500 surety bond • TOT
• Compliance
• Enforcement • City of Ventura
• City of Goleta
Short-Term Rental General Plan Direction
September 13, 2022
APPLICABLE SHORT-TERM RENTAL GENERAL PLAN DIRECTION
The City’s General Plan serves as the blueprint for future growth in Santa Barbara and provides the following direction related to short-term rentals.
The Land Use Element provides direction on land use, growth management, community design, and neighborhoods. It includes goals to “Maintain the small town character of Santa Barbara as a unique and desirable place to live, work, and visit” and “Maintain and enhance neighborhoods with community centers where requested, and improved connectivity to daily necessities, including limited commercial activity, transit, and open spaces while protecting the established character of the neighborhood. Maintain or reduce the existing ambient noise levels in single family neighborhoods.” The Land Use Element includes policy LG1 Resource Allocation Priority, LG4 Principles for Development, and LG15 Sustainable Neighborhood Planning, which prioritize affordable housing over all other types of development; focus growth, encourage a mix of land uses, and strengthen mobility and active living; and preserve and enhance a neighborhood’s sense of place, while reducing the community’s carbon footprint.
The Economy and Fiscal Health Element promotes economic resiliency, local small business, and employment for residents. It includes a goal to “Ensure a strong economy with a diversity of business sizes and types that provide a stable long-term revenue base necessary to support essential services and community enhancements, as well as diverse job opportunities.” The Economy and Fiscal Health Element also includes goals to encourage more “green” businesses, support tourism and related support services, and minimize impacts to the environment.
The Safety Element protects the community from risks and impacts from natural hazards. It includes a goal to “Protect life, property and public well-being from natural and human-caused hazards.” The Safety Element includes policy S33 Fire Hazard Programs, which directs limiting residential development in High Fire Hazard Areas.
The Environmental Resources Element addresses most of the City’s natural resources, including noise. It includes a goal to “Protect and use natural resources wisely to sustain their quantity and quality, minimize hazards to people and property, and meet present and future service, health and environmental needs.” The Environmental Resources Element includes policies ER31. Noise Policies for New Residential Uses and ER31.5 Non-Residential Noise Affecting Residential Neighborhoods, which directs considering surrounding land uses when establishing noise policies and conducting more detailed assessments with special uses that may affect residential neighborhoods.
ATTACHMENT 2
Short-Term Rental General Plan Direction
September 13, 2022
The Draft 2023 Housing Element covers the 2023 to 2031 planning period and contains goals and direction to address housing needs in Santa Barbara. It includes a goal to “Promote Housing Stability: Implement tenant protection measures, promote fulltime occupancy of existing housing, and discourage conversion of housing to other uses.” The Draft 2023 Housing Element includes draft Policy 4.3, which promotes housing for residents and limits short-term rentals, conversions to hotels, and prolonged vacancies. The Draft 2023 Housing Element also includes draft program HE-15: Short-Term Vacation Rental/Hotel Ordinance, which directs further regulating short-term rentals to increase multi-unit development and prioritize residential development over hotel development.
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Lauro
Reservoir
Laguna
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De la Vina St
Padre St
Carrillo St
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Cabrillo Blvd
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Ortega St
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San Andres St
Castillo St
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Cielito
Hope
Riviera
Foothill
Bel Air
Campanil
Alta Mesa
Westside
Eastside
Oak Park
Eucalyptus Hill
Laguna
East Mesa
Hidden Valley
Upper East
West Mesa
East Beach
Hitchcock
San Roque
Upper State
Lower Riviera
East San Roque
Downtown
West Beach
Lower East
Samarkand
Waterfront
West Downtown
Lower West
Lower State
Milpas
Coast Village
Zones Where Short-term Rentals Require Review & Approval R-MH (R-4) - Residential Multi-Unit and Hotel
C-R (C-1,C-L,C-P) - Commercial Restricted
C-G (C-2) - Commercial General
M-C (C-M) - Manufacturing Commercial
M-1 - Light Manufacturing (Coastal Zone only)
HRC-1 - Hotel and Related Commerce I (Coastal Zone only) HRC-2 - Hotel and Related Commerce II (Coastal Zone only) OC - Ocean Related Commerce (Coastal Zone only)
Zones Where Short-term Rentals are Prohibited
Zones Where Short-term Rentals are Prohibited
Date: 10/31/2017
Path: R:\GIS\WORK\an\arcmap\PlanSB Implementation\Housing Element 2014\Zones Short-term Rentals Require Review 11x17 Oct2017.mxd Map prepared by City of Santa Barbara, Planning Division, AJN, October, 2017 0 625 1,250 2,500 3,750 5,000
Feet
1:30,000
NAD 1983 State Plane
California V FIPS 0405 (Feet)
:
City of Santa Barbara
Zones Where Short-term Rentals
Require Review and Approval
ATTACHMENT 3
City of Santa Barbara Community Development Department
Memorandum
DATE: September 15, 2022
TO: Interested Parties
FROM: Planning & Zoning Counter
SUBJECT: Short-Term Rental Permitting Process
The Planning Division is in the process of developing an updated handout and webpage to describe the short-term rental permitting process. The following information is based on current regulations and shared via email to interested parties who contact the City’s Planning & Zoning Counter.
How to Apply to Convert a Single Residential Unit to a Short-term Rental If you are interested in converting a single residential unit to a short-term rental, the zone and existing site development will determine the applicable regulations and process. A short-term rental is a nonresidential use. It is not unusual for alterations to be required in order to convert a residential use to a nonresidential use (or vice versa) because the standards are not the same.
A few examples of residential vs nonresidential standards:
1. Parking for a nonresidential use cannot back out onto a street, which may require that the parking onsite be reconfigured.
2. If there are residential uses remaining on the site, separate water metering is required and the required open spaces for the residential uses cannot be accessible by the nonresidential use.
3. Depending on the configuration and location, the parking requirements might not be the same.
4. If the property is a condominium at a minimum, a map amendment would be required, in addition to restricting access to required open spaces for the remaining residential condominiums.
ATTACHMENT 4
Community Development Memorandum
Short-Term Rental Permitting Process
September 15, 2022
Because the application of nonresidential standards to a residential site can vary greatly based on existing site-specific development, we recommend a Planner Consultation as the first step. However, it is not a requirement. If the proposal involves the conversion of more than one residential unit (cumulatively), the first step would be a Pre-Application Review Team (PRT) review.
Please note that converting a residential unit to a short-term rental is a permanent change from a residential to a nonresidential use. The Municipal Code does not make allowances for the ability to do short-term rentals on occasion. Once the residential use has been converted it is now recognized as a nonresidential use. If you want to change it back to a residential use, you will need to meet all the residential standards in effect at that time. It may not be simple to convert back to a residential use.
Pre-Application Submittals for Planner Consultation Or Pre-Application Review Team (PRT)
If you want to apply for a Planner Consultation to get more detailed information on what you would need for this proposed change of use, OR if you need to apply for PRT, please review the Pre-Application information below. Please note that complete a dimensioned site plan and floor plans will be required, in addition to the other requirements outlined in the handout.
Before You Submit Your Application Online (Complete The Following)
1. If you are unfamiliar with the City’s Planning Application Process, please refer to the Planning Application Guide and New Planning Application Procedures video for more assistance.
2. Include a completed Pre-Application. (Remember to save the Pre-Application form to your desktop first before filling it out; otherwise, it might not save your changes.)
3. The plans submitted should be in accordance with the Project Plan Submittal Guide and should include scaled site plan and floor plans.
4. Remember to submit information on the proposed operation of the short-term rental. For example, will people be able to rent rooms separately?
5. If you have specific questions, please provide additional information as needed.
6. For required Supplemental Applications, Checklists, and other resources, please go to the Planning Forms & Applications webpage.
General Information
What’s my zone?
a. Go to Look Up Property Information in Citizen Access. b. Type in the address (less is more). Example below for “630 Garden Street” Community Development Memorandum
Short-Term Rental Permitting Process
September 15, 2022
c. Click the parcel hyperlink.
d. Scroll to “Zoning” at the bottom part of Parcel Details section, right above the Addresses section.
Available Handouts
Please note that any handouts provided are meant to identify the main requirements for the conversion of one residential unit on one lot. It does not address multi-unit residential development, mixed-use development, nonconforming structures or uses, site-specific conditions or alterations, etc.
The table below has a very “big picture” approach to the process. Changes may be required on a site to meet all of the nonresidential standards, even if no alterations are proposed. Therefore, please note that in looking at the table below, the level of review is determined by the changes that are required for the change of use, NOT by what changes you want to propose. You might not want to change anything but you might have to make changes to comply with the nonresidential regulations for a short-term rental.
Community Development Memorandum
Short-Term Rental Permitting Process
September 15, 2022
Coastal Zone
Title 28 applies to properties in the coastal zone. If the Zone has “S-D-3”, the parcel is in the coastal zone.
Please review the Coastal Zone: Vacation Rentals handout for applicable regulations if it is located in the coastal zone. The handout has not been updated for properties outside of the coastal zone; however, the information is similar. Please note that the handout was originally designed for properties that only had one residential unit on the property and no other development; therefore, it does not go into all the code requirements for other development scenarios.
Inland Zone
Title 30 applies to properties outside of the coastal zone. Links are provided below for equivalent references in Title 30 where applicable. You can use the handout and this email as a guide.
Community Development Memorandum
Short-Term Rental Permitting Process
September 15, 2022
Links to some relevant Title 30 Municipal Code Sections:
1. Allowed Zones.
The following zones allow hotels, provided that all the applicable standards are met.
• Coastal Zones: R-4, C-L, C-P, C-1, C-2, C-M, HRC-1, HRC-2, HRC-2/OC and M-1.
• Inland Zones: R-MH, C-R, C-G, and M-C (Not allowed in the M-I Zone).
For details on zones that allow hotels in historic structures with a Conditional Use Permit:
• Title 28: See SBMC 28.94.030.BB Uses Permitted in Specific Zones. • Title 30: See the Land Use Regulations tables in the corresponding zones under Division II: Zone Regulations Part 1: Base Zones and Standards for Specific Uses and Activities, SBMC 30.185.220 Hotels and Similar Uses.
2. Growth Management Program. Chapter 30.170 NonResidential Growth Management Program.
3. Parking. Chapter 30.175 Parking Regulations outlines the standards and requirements related to automobile and bicycle parking spaces. See 30.175.040 Required Automobile and Bicycle Parking Spaces and SBMC 30.175.040.B.7, Parking for Group Residential, Hotels and Similar Uses for the required parking spaces.
4. Setbacks. See the Development Standards tables in the corresponding zones under Division II: Zone Regulations Part 1: Base Zones.
5. Tenant Displacement. Chapter 30.190 Tenant Displacement Assistance. Tenant Displacement Assistance handout applies to both Title 28 and Title 30.
6. Conversion of more than one residential unit. See Chapter 30.155 Conversion of Residential Units to Condominiums, Hotels, or Similar Uses. The first step is applying for a Pre-Application Review Team (PRT) review.
Title 30 - SBMC 30.01.030 Structure of Zoning Ordinance describes the structure of Title 30 shown below.
Community Development Memorandum
Short-Term Rental Permitting Process
September 15, 2022
30.295.040 Commercial Use Classifications. (as amended by Ordinance No. 5947) P. Hotels and Similar Uses. Establishments providing overnight accommodations to transient patrons for payment. This classification includes establishments that offer accommodations for periods of 30 consecutive calendar days or less. Establishments may provide additional services, such as conference and meeting rooms, restaurants, bars, or recreation facilities available to guests or to the general public. This use classification includes, but is not limited to, auto courts, bed and breakfast inns, hostels, inns, motels, motor lodges, timeshare projects, short-term rental or similar use of single or multi-unit residential dwellings, and tourist courts.
Short-Term Rental Frequently Asked Questions (FAQs)
1. Can the parking for my proposed short-term rental back out onto the street? No. Parking for a nonresidential use cannot back out onto a street.
2. Can I rent out my residence on occasion as a short-term rental? No. In order to rent out a residence as a short-term rental it has to be permanently changed from a residential to a nonresidential use. The Municipal Code does not make allowances for the ability to do short-term rentals on occasion. Once the residential use has been converted it is now recognized as a nonresidential use.
3. Can I rent out rooms in my residence on a short-term basis? No. The City does not have a home stay ordinance. Renting out rooms in a residence more closely matches the definition of a Bed and Breakfast Inn; therefore it’s considered a type of hotel. If a hotel use is allowed you can look at possible options to convert it to a hotel use.
4. Can I do a partial, co-ownership, or time-share? If the property functions as a time-share, then you need to review the time-share ordinances for applicability and process. Our Zoning Ordinances (30.300.200 “T” for outside the Coastal Community Development Memorandum
Short-Term Rental Permitting Process
September 15, 2022
Zone and 28.04.020 for inside the Coastal Zone) define a “Time-share Project” as when a “purchaser receives the right in perpetuity, for life, or for a term of years, to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment of real property, annually or on some other periodic basis, for a period of time that has been or will be allotted from the use or occupancy periods into which the project has been divided.” Our Zoning Ordinances also define a “Time-share Estate” as a “right of occupancy in a timeshare project which is coupled with an estate in the real property.”
Figure 1 - SBMC 28.040.020 (under T):
Figure 2 - SBMC 30.300.200 (under T):
City of Santa Barbara Community Development Department
Memorandum
DATE: May 10, 2017
TO: Mayor and Councilmembers
FROM: George Buell, Community Development Director
Renee Brooke, AICP, City Planner
SUBJECT: Short-Term Rental Permitting Process
At your request, in February 2016, staff provided a written summary of necessary steps to legally convert an existing residential unit to a short-term rental. Due to recent public comments and numerous discussions at public hearings related to this process, staff is reissuing this memorandum with updated information and specific examples of short-term rental proposals that staff has reviewed over the last year. Since August 2016, five residential units have been legally converted to short-term rentals, and several more are in process.
As with any development proposal, it is important to understand that the number of applicable regulations, permits, and associated review is dependent upon site-specific circumstances, and this memorandum does not contemplate or attempt to address every possible scenario that may exist in the city.
Background
Since 1989, the city has placed a limitation on nonresidential growth in order to manage development and ensure the community continues to live within its resources. In March 2013, City Council adopted the current Nonresidential Growth Management Program (Santa Barbara Municipal Code (SBMC) Chapter 28.85), which applies to “…the construction of new nonresidential floor area or the conversion of existing residential floor area to nonresidential use.” The definition of a “Hotel” (SBMC §28.04.395) encompasses short-term rentals as they involve a building, group of buildings, or portion of a building occupied for overnight stay by individuals for less than 30 consecutive days. The conversion of an existing residence to a short-term rental/hotel is a change of use from a residential use to a non-residential use for land use purposes and, thus, requires compliance with the Nonresidential Growth Management Program (GMP).
Discussion
The attached public handout provides initial guidance to applicants about the extent of discretionary review required for particular scenarios and lists general information applicable to most short-term rental/hotel conversion applications. The handout is intended ATTACHMENT 5
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2 to be a starting point for applicants. Due to many unique site-specific factors and limitations involved in converting existing residential units to short-term rentals, a Planner Consultation is highly recommended (not required) to provide more specific procedural information.
The remainder of this memorandum briefly summarizes each step in the critical path to convert an existing residential unit to a short-term rental. It is important to note that a proposal to construct a new short-term rental/hotel would be subject to most of the same regulations.
Zoning Designation
Short-term rentals are allowed in all zones in which hotels are allowed: R-4, C-L, C-P, C-1, C-2, C-M, HRC-1, HRC-2, HRC-2/OC and M-1 Zones. If the subject property is not located in one of these zones, a short-term rental is not an allowed use.
Number of Units
As shown in the table “Planning Process for Conversion of Residential Unit to a Vacation Rental” of the attached handout, the number of existing units proposed for conversion is the most significant factor in determining the overall permitting process. Conversions of more than one existing unit on a site are subject to a Hotel Conversion Permit. The process to obtain such a permit is admittedly onerous. Since November 2016, the City has received two requests for short-term rental conversions that will require a Hotel Conversion Permit.
Prior to this, no applications had been submitted since the adoption of the ordinance in 1983.
Amount of Floor Area1
A proposal to convert one unit, less than 1,000 square feet in size, from a residential to a nonresidential use is excluded from the floor area limitations of the GMP and is simply reviewed and documented at a staff level. If no exterior changes are required, such a proposal may be able to proceed without discretionary review.
A proposal to convert one unit, between 1,000 and 3,000 square feet in size, from a residential to a nonresidential use is subject to the floor area limitations of the GMP and requires Development Plan approval at the applicable review body (ABR or HLC). Any exterior changes required would be reviewed by the appropriate design review board.
A proposal to convert one unit, in excess of 3,000 square feet, from a residential to a nonresidential use is subject to the floor area limitations of the GMP and requires Development Plan approval at the Planning Commission. Any exterior changes required would be subject to approval by the appropriate design review board.
For any number of units on a site, if the total amount of floor area proposed for conversion exceeds the 1,000 square-foot Minor Addition allocated to all properties in the City or the 3,000 square-foot combined Minor and Small Additions allocated to properties in the Downtown Development Area, and the project site does not have adequate demolition credit for purposes of the GMP, nonresidential floor area must be transferred to the project
1 All legal lots that existed as of December 6, 1989 can be allocated up to 1,000 square feet from the Minor Addition category of the GMP. Only legal lots that are located within the Downtown Development Area can apply for square footage (from 1,000 up to 3,000 square feet) from the Small Addition category of the GMP. These square footage amounts are cumulative as of December 6, 1989.
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3 site, from a sending site, pursuant to the requirements of SBMC Chapter 28.95 (Transfer of Existing Development Rights).
Project Site Location
A proposal to convert an existing residential unit to a nonresidential use is considered “development” under the Coastal Act. If the subject site is located within the Coastal Zone, the proposal will be subject to SBMC Chapter 28.44 (Coastal Overlay Zone) and require a Coastal Development Permit.
Displacement of Residential Tenants
A proposal to convert one unit from a residential to a nonresidential use is subject to the Tenant Displacement Assistance Ordinance (SBMC Chapter 28.89) if a building or public works permit is required as part of the project. As required by the Ordinance, a sixty (60) day Notice of Intent must be provided to all eligible resident households prior to filing any application for conversion, and certification of displacement assistance (four times the median advertised rental rate or $5,000, whichever is great) to all eligible tenants must be provided prior to the issuance of a permit.
Projects that involve conversion of more than one unit are subject to the Hotel Conversion Ordinance and must comply with similar Tenant Protection Provisions outlined in SBMC Chapter 28.88.
Parking Requirements
The parking requirement for a short-term rental is generally the same as that for hotels:
one parking space per sleeping unit (SBMC §28.90.100.J.10). In the case of short-term rentals, a bedroom is considered a sleeping unit. However, for short-term rentals with cooking facilities, the parking requirement is the greater of either one space per sleeping unit, or 1.25 space for a studio, 1.5 space for a one-bedroom unit, and 2 spaces for a twoor more bedroom unit (SBMC §28.21.030.B.2 and §28.90.100.G.3). For example, a threebedroom residential unit would be required to provide three parking spaces on-site in order to operate as a short-term rental/hotel. A different parking ratio may be required if the project is located in the C-P Zone, S-D-2 Overlay Zone, or the Central Business District. The parking is also subject to the City’s parking design standards for nonresidential uses.
Furthermore, if a residential unit (or portion thereof) is converted to a short-term rental, that unit (or portion thereof) will no longer be eligible to be part of a Residential Permit Parking Program.
Lot Area Density
In any zone, hotel units that include cooking facilities are subject to the lot area requirements of the R-4 Zone (SBMC §28.21.030.B.2).
Required Setbacks
All structures on the project site must comply with the required setbacks for the zone.
Conversion of an existing building that is nonconforming to setback(s) will require approval of a Modification to allow a change of use within the setback(s).
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4 Other Applicable Regulations
Water Meters - A separate water meter may be required for short-term rentals, depending on the number and mix of uses on the site. Commercial rates will apply to water and sewer usage.
Building and Fire Code Compliance - The conversion of existing residential units to shortterm rentals may require additional upgrades, permits, or review from the City Building and Safety Division and/or the Fire Department, including review for accessibility, proper exiting, and fire separation. Factors that may determine applicability of these upgrades include the number of total sleeping units and extent of improvements on the site.
Storm Water Management Program (SWMP) – Proposals to convert existing residential units to a short-term rental that require discretionary review (design review, Staff Hearing Officer, or Planning Commission), must comply with the City’s SWMP regulations.
Case Studies
The following five case studies represent a range of properties that have either been reviewed or, in some cases, approved for short-term rental use of the site. The applicable requirements are summarized based on characteristics of the proposal.
Case Study #1 - 13 W. Haley Street
Zoning Designation: C-2 (General Commercial)
Number of Units: One (single-family unit)
Amount of Floor Area: 699 square feet
Project Site Location: Downtown (Central Business District and 50% Parking Zone of Benefit)
Displacement of Residential
Tenants:
N/A – the unit was vacant upon project submittal; however TDAO does not apply because no building permit required
Parking Requirements: 1 bedroom = 1 uncovered space required Required Setbacks: N/A – none required in C-2 Zone
Other Applicable Regulations: None
Discretionary Bodies: None
Planning Fees Required: Staff Hourly Fee to confirm zoning compliance In this scenario, because the site is located in the Downtown Development Area it is allocated up to 3,000 square feet of GMP nonresidential square footage. The conversion of a 699 square-foot single-family residence to a short-term rental/hotel does not require any discretionary approvals or permits. A request was submitted to Planning Division staff on February 16, 2017 to confirm that no approvals or permits were required for the change in use. Following that confirmation, the owner submitted a request on April 7, 2017 for a Zoning Compliance Letter to proceed with a formal change of use. The applicant received a Zoning Compliance letter on April 18, 2017 and subsequently obtained a business license to operate the short-term rental.
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5 Case Study #2 - 109 W. Ortega Street
Zoning Designation: C-2 (General Commercial)
Number of Units: One (single-family unit)
Amount of Floor Area: 1,699 square feet
Project Site Location: Downtown (Central Business District and 50% Parking Zone of Benefit)
Displacement of Residential
Tenants: N/A – the unit was vacant upon project submittal Parking Requirements: 2 bedrooms = 2 uncovered spaces required Required Setbacks: N/A – none required in C-2 Zone
Other Applicable Regulations: SWMP Tier 2 (Basic BMP)
Discretionary Bodies: Architectural Board of Review
Planning Fees Required: $9,655
In this scenario, because the site is located in the Downtown Development Area it is allocated up to 3,000 square feet of GMP nonresidential square footage. The request to convert a 1,699 square-foot single-family residence to a short-term rental required ABR review to consider Development Plan approval and design review of exterior changes.
The planning process was relatively straight-forward; the application was received by the City on November 23, 2015 and received Final Approval by the ABR on January 19, 2016.
The minor improvements were completed on August 2, 2016 and the applicant subsequently obtained a business license to operate the short-term rental.
Case Study #3 - 1624 Bath Street
Zoning Designation: R-4 (Hotel-Motel-Multiple Family Residential) Number of Units: Three; only one proposed for conversion to short-term rental Amount of Floor Area: Approx. 1,720 square feet to be converted Project Site Location: Downtown
Displacement of Residential
Tenants:
N/A – units had been used as short-term rentals so no qualifying tenants
Parking Requirements: 3 bedrooms = 3 uncovered spaces
Required Setbacks: Front = 10’; Interior = 6’; Rear = 6’ and 10’ (upper floor) Other Applicable Regulations: SWMP Tier 2 (Basic BMP)
Discretionary Bodies: Staff Hearing Officer and Historic Landmarks Commission Planning Fees Required: $3,145
In this scenario, because the site is located in the Downtown Development Area it is allocated up to 3,000 square feet of GMP nonresidential square footage. The existing two-story structure encroaches into the interior setback. A request to change the use of a structure nonconforming to setbacks requires Modification approval. The request to convert the unit to a short-term rental requires Staff Hearing Officer review for the required Modification and Development Plan. The HLC will review all proposed exterior changes.
The project has received comments from the HLC and has been submitted for action by the Staff Hearing Officer. The planning process could be relatively straight-forward.
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6 Case Study #4 - 224-226 W. Yanonali Street
Zoning Designation: R-4 (Hotel-Motel-Multiple Family Residential) / SD-3 (Coastal Zone) Number of Units: Two condominiums proposed for conversion in a five-unit development
Amount of Floor Area: Approx. 1,650 square feet to be converted Project Site Location: West Beach
Displacement of Residential
Tenants:
N/A – units had been used as short-term rentals so no qualifying tenants
Parking Requirements:
2 one-bedroom units = 3 uncovered spaces required (1.5 spaces each)
Required Setbacks: Front = 10’; Interior = 6’; Rear = 6’ and 10’ (upper floors) Other Applicable Regulations:
Development Plan; Hotel Conversion Permit; Coastal Development Permit; Tentative Subdivision Map Amendment; Final Map
Amendment
Discretionary Bodies: Planning Commission and Architectural Board of Review Planning Fees Required: Approximately $29,815
In this scenario, because the two underlying parcels were merged when the condominiums were developed, the Minor and Small square footage allocations for each parcel were also merged. Therefore, the project site has a total of 2,000 square feet of Minor Addition and 4,000 square feet of Small Addition available. The request to convert 1,650 square feet of existing residential use to a nonresidential use requires Development Plan approval.
Because the scenario involves the conversion of more than one unit on a lot, compliance with the requirements of a Hotel Conversion Permit (including tenant noticing and payment of moving expenses, if applicable) and related Planning Commission review is also required. The project site is located in the Coastal Zone and, therefore, the conversion of floor area from a residential to nonresidential use requires a Coastal Development Permit.
The subject proposal is within a five-unit residential condominium development. In order to convert two of the condominium units to nonresidential use, a Final Map amendment is needed. This requires Planning Commission approval of an amendment to the Tentative Subdivision Map and subsequent amendment to the Final Map.
An optional Pre-Application Review Team (PRT) review was submitted by the applicant to determine potential issues, staff support, etc. Given the application types required for this scope of work, it could take 8 to 10 months to obtain the necessary land use entitlements.
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7 Case Study #5 - 207 W. Mason Street
Zoning Designation: R-4 (Hotel-Motel-Multiple Family Residential) / SD-3 (Coastal Zone) Number of Units: Three (triplex)
Amount of Floor Area: Approx. 2,705 square feet to be converted Project Site Location: West Beach
Displacement of Residential
Tenants:
N/A – units have been used as short-term vacation rentals so no qualifying tenants
Parking Requirements: 3 two-bedroom units = 6 uncovered spaces required (2 spaces each) Required Setbacks: Front = 10’; Interior = 6’; Rear = 6’ and 10’ (upper floors) Other Applicable Regulations: Development Plan; Hotel Conversion Permit; Coastal Development Permit; Interior Setback Modifications
Discretionary Bodies: Planning Commission and Historic Landmarks Commission Planning Fees Required: Approximately $30,520
In this scenario, because the site is located in the Downtown Development Area it is allocated up to 3,000 square feet of GMP nonresidential square footage. The request to convert 2,705 square feet of existing residential use to a nonresidential use requires Development Plan approval.
Because the scenario involves the conversion of more than one unit on a lot, compliance with the requirements of a Hotel Conversion Permit (including tenant noticing and payment of moving expenses, if applicable) and related Planning Commission review is also required. The project site is located in the Coastal Zone and, therefore, the conversion from a residential to nonresidential use requires a Coastal Development Permit.
The existing site development is nonconforming to density, parking and interior setbacks.
The proposed conversion from a residential to nonresidential use within the setback requires a request for Modification for each of the two interior setbacks.
The Zoning Ordinance does not require a Parking Modification for the change of use because the existing apartments are non-conforming to parking (six required; four provided) and the proposed hotel requires the same number of parking spaces as the apartments. However, the Hotel Conversion and Coastal Development Permit findings require that parking needs be met on site. Staff expects the parking demand for the three two-bedroom hotel units to be six spaces, consistent with the Zoning Ordinance requirement. Site constraints and the location of existing buildings will make providing additional on-site parking difficult.
An optional PRT was submitted by the applicant to determine potential issues, staff support, etc. Given the application types required for this scope of work, it could take 10 to 12 months to obtain the necessary land use entitlements.
Current Status of Proposals to Convert to Short-Term Rentals Staff has been reviewing applications and completing Planner Consultations for shortterm rental proposals since late 2015. The following table provides the current status of all submittals received by Planning Division staff since that time.
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8 Address Zone Project Scope Applications Required Case # Floor
Area
(sq. ft.)
LEGALLY CONVERTED AND OPERATING
1 109 W. Ortega St. C-2 Convert one existing unit to a
short-term rental
Development Plan, Design
Review and Building Permit
BLD2016-00211,
MST2015-00581
1,669
2 522 Garden St. C-M Convert two existing commercial
spaces to short-term rentals
Building Permit BLD2016-01867,
MST2016-00353
0 3 102-106 W. Islay
St./1805 Chapala St.
R-4 Convert one existing unit to a
short-term rental
No permits required MST2017-00135 790
4 316 W. Pedregosa
St.
R-4 Convert one existing unit to a
short-term rental
No permits required MST2017-00118 690
5 410 E. Haley St. (401
E. Haley St., 406-412
E. Haley St.)
C-M Convert one existing unit to a
short-term rental
Development Plan, Design
Review and Building Permit
MST2016-00309,
BLD2014-00243,
BLD2015-01061
1,469
6 13 W. Haley St. C-M Convert one existing unit to a
short-term rental
No permits required MST2017-00166 699
COMPLETING POST-DISCRETIONARY OR MINISTERIAL ACTIONS (NOT YET OPERATING) 1 1929 Bath St. R-4 Convert one existing unit to a
short-term rental
Development Plan, Design
Review and Building Permit
MST2016-00369,
BLD2016-00520
1,230
2 402 Anacapa St. C-M Convert one existing unit to a
short-term rental
Development Plan, Design
Review and Building Permit
MST2016-00514,
BLD2017-00431
1,568
3 536 Brinkerhoff Ave. C-2 Convert one existing unit to a short-term rental
Design Review and Building
Permit
MST2017-00013,
BLD2017-00414
928
4 819 Garden St. C-2 Convert one existing commercial
space to a short-term rental
Building Permit BLD2016-02706 0
5 1608 Bath St. R-4 Convert one existing unit to a
short-term rental
Setback Modification
(approved by SHO on
1/18/17), Building Permit
MST2016-00434 500
6 718 Castillo St. R-4 Convert one existing unit to a
short-term rental
Design Review (approved
by ABR on 4/10/17),
Building Permit
MST2017-00117,
BLD2017-00781
949
PRE-APPLICATION OR DEVELOPMENT APPLICATION UNDER REVIEW 1 101 W. Anapamu St. C-2 Convert one existing unit to a short-term rental
Development Plan (denied
by HLC on 4/19/17;
Appealed)
MST2017-00121 1,007
2 812 Jennings Ave. M-1 Convert one existing unit to a
short-term rental
Development Plan (denied
by ABR on 4/24/17;
Appealed), Design Review,
Building Permit
MST2017-00109 1,081
3 2017 Bath St. R-4 Convert one existing unit to a
short-term rental
Development Plan (denied
by ABR on 5/8/17), Design
Review, Building Permit
MST2017-00146 1,260
4 228 W. Micheltorena
St.
R-4 Convert one existing unit to a
short-term rental
Development Plan, Design
Review, Building Permit
MST2016-00496 1,215
5 1624 Bath St. R-4 Convert one existing unit to a
short-term rental
Development Plan, Setback
Modification, Design
Review, Building Permit
MST2017-00015 1,720
6 216 W. Haley St. R-4 Convert one existing unit to a
short-term rental
Design Review, Building
Permit
MST2017-00142 940
7 1330 Chapala St. C-2 This request for a Pre-Application review involving 13 units was withdrawn on May 2, 2017 Short-Term Rental Permitting Process
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9 Address Zone Project Scope Applications Required Case # Floor
Area
(sq. ft.)
8 224-226 W. Yanonali
St. (2 Condos)
R-4/
SD-3
Convert two existing
condominium units to shortterm rentals
Hotel Conversion Permit,
Development Plan, Coastal
Development Permit,
Tentative Subdivision Map
Revision, Design Review
MST2016-00576 1,650
9 207 W. Mason St. R-4/
SD-3
Convert three existing units to
short-term rentals
Hotel Conversion Permit,
Development Plan, Coastal
Development Permit,
Modifications, Design
Review, Building Permit
MST2016-00524 2,705
10 128 Natoma Ave. R-4/
SD-3
Convert one existing unit to a
short-term rental
Development Plan, Coastal
Development Permit,
Modifications, Design
Review, Building Permit
MST2016-00543 1,709
PLANNER CONSULTATION COMPLETED
1 119 & 121 W.
Pedregosa St.
R-4 Convert one existing unit to a
short-term rental
May need Setback and
Parking Modifications
N/A 547
2 618 Anacapa St. #1 C-M Convert one existing
condominium to a short-term
rental
New Parcel Map. Appears
to have issues obtaining
HOA approval.
N/A ??
3 322 E. Canon
Perdido St.
C-2 Convert one existing unit to a
short-term rental
Development Plan, Design
Review, Building Permit
N/A 1,656
4 1132 Curley Ave. R-4 Convert one existing unit to a
short-term rental
Setback Modifications N/A 922
5 224 W. Cota St. R-4 Convert one existing unit to a
short-term rental
Development Plan, Setback
Modification, Building
Permit
N/A 1,042
6 205 Natoma Ave. R-4/
SD-3
Convert one existing unit to a
short-term rental
Development Plan, Coastal
Development Permit,
Modifications, Design
Review, Building Permit
N/A 1,314
7 414 Ruth Ave. R-4 Convert one existing unit to a
short-term rental
Setback Modifications,
Design Review
N/A 937
8 502 Brinkerhoff Ave. C-2 Convert one existing unit to a short-term rental
Development Plan, Design
Review, Building Permit
N/A 1,080
PLANNER CONSULTATION IN PROCESS
1 213 Cottage Grove
Ave.
C-2 Convert one existing unit to a
short-term rental
Design Review, Building
Permit
N/A 754
2 711 Bath St. R-4 Convert one existing unit to a
short-term rental
Unknown at this time N/A ??
3 421 De la Vina St. C-2 Convert one existing unit to a short-term rental
Unknown at this time N/A 708
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10 Address Zone Project Scope Applications Required Case # Floor
Area
(sq. ft.)
4 201 Bath St R-4/
SD-3
Convert 12 existing units to
short-term rentals
Hotel Conversion Permit,
Coastal Development
Permit; other applications
unknown at this time
N/A ??
5 113 W. Yanonali St. R-4/
SD-3
Convert one existing unit to a
short-term rental
Unknown at this time N/A ??
6 231 W. Valerio St. R-4 Convert one existing unit to a short-term rental
Unknown at this time N/A ??