Agenda packet — Santa Barbara City Council, April 16, 2024 (part 2 of 4)

conducted by USC Sea Grant will engage the stormwater community and the public throughout the project.

BUDGET/FINANCIAL INFORMATION:

The grant award of $590,481 will be allocated to UCSB for $492,281 and to Cascade Water Resources for $80,200. An additional $18,000 of grant funds will be provided to UCSB’s Bren School of Environmental Science and Management, pending selection of a student group project in the third year of the project. Measure B will provide matching funds of $40,000 to the Southern California Coastal Water Research Project (SCCWRP), and in-kind staff time for managing the awards, coordinating research, conducting field work, and contributing to outreach efforts. Leveraged research activities valued at $154,000 will be contributed by SCCWRP. Staff recommends that Council accept the grant funds and increase revenue appropriations and expenditure appropriations for the grant as follows: $590,481 in the Fiscal Year 2024 Sustainability and Resilience Miscellaneous Grants Fund budget for Clean Streets, Clean Seas Project.

The professional services agreement with UCSB for microplastic research in support of the Clean Streets, Clean Seas grant is for $492,281. The contract will be funded from the Clean Streets, Clean Seas grant funds included in the Fiscal Year 2024 Sustainability and Resilience Miscellaneous Grants Fund Budget.

SUSTAINABILITY IMPACT:

The Clean Streets, Clean Seas grant project and award to UCSB seeks to identify means of intercepting microplastic pollution prior to discharge into creeks and the ocean. Results from the project will benefit the sustainability goals of the City and other communities.

ENVIRONMENTAL REVIEW:

There is no environmental review required for the research to be conducted in the Clean Streets, Clean Seas Project.

A copy of the agreement may be requested from the Sustainability & Resilience Department for public review by contacting [email protected].

PREPARED BY: Jill Murray, Water Quality Research Analyst SUBMITTED BY: Alelia Parenteau, Sustainability & Resilience Director APPROVED BY: City Administrator’s Office
RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF

SANTA BARBARA ACCEPTING A GRANT FROM THE

NATIONAL OCEANIC AND ATMOSPHERIC
ADMINISTRATION’S NATIONAL SEA GRANT COLLEGE
PROGRAM IN THE AMOUNT OF $590,481, AND
AMENDING RESOLUTION NO. 23-076 ADOPTING THE
BUDGET FOR FISCAL YEAR 2024 TO INCREASE

REVENUE AND EXPENDITURE APPROPRIATIONS BY
$590,481 IN THE SUSTAINABILITY AND RESILIENCE
DEPARTMENT FISCAL YEAR 2024 MISCELLANEOUS

GRANTS FUND
WHEREAS, the Creeks Division was awarded $590,481 through the Marine Debris Competition of the National Oceanic and Atmospheric Administration’s National Sea Grant Program to fund a three-year study of microplastic pollution in urban runoff; 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 2024 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, this Resolution adopted by City Council shall memorialize that action to amend the budget as provided herein.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT:

Section 1. The Council accepts funding totaling $590,481 from the Marine Debris Competition of the National Oceanic and Atmospheric Administration’s (NOAA) National Sea Grant Program.

Section 2. The Council authorizes the Sustainability and Resilience Director to enter into necessary grant agreements with NOAA.

Section 3. The Council, in accordance with the provisions of Section 1205 of the City Charter, amend the budget for the fiscal year 2024, as adopted by Resolution No. 23- 076, to increase revenue and expenditure appropriations by $590,481, in the Sustainability and Resilience Fiscal Year 2024 Miscellaneous Grants Fund Budget.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: April 16, 2024
TO: Mayor and Councilmembers
FROM: Accounting Division, Finance Department
SUBJECT: Fiscal Year 2024 Interim Financial Statements for the Eight Months Ended February 29, 2024
RECOMMENDATION:

That Council accepts the Fiscal Year 2024 Interim Financial Statements for the eight months ended February 29, 2024.

DISCUSSION:

The interim financial statements for the eight months ended February 29, 2024 (67% of the fiscal year) are attached. The interim financial statements include budgetary activity in comparison to actual activity for the General Fund, Enterprise Funds, Internal Service Funds, and select Special Revenue Funds.

ATTACHMENT: Interim Financial Statements for the Eight Months Ended February 29, 2024
PREPARED BY: Nathalie Lecolley, Controller
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
Agenda Item No. 7
File Code No. 250.02
ATTACHMENT 1
Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD
GENERAL FUND (pages 3-7)
Revenue 175,331,580 108,341,881 503 66,990,202 61.8% 103,221,313 Expenditures 184,440,312 113,659,617 4,966,390 65,814,306 64.3% 100,024,349 Addition to / (use of) reserves (9,108,732) (5,317,736) (4,965,887) 3,196,965 MEASURE C (pages 3-7)
Included in GF summary a
Revenue 31,900,000 21,520,063 - 10,379,937 67.5% 21,562,823 Expenditures 49,137,305 33,524,687 - 15,612,618 68.2% 18,932,942 Addition to / (use of) reserves (17,237,305) (12,004,624) - 2,629,881 SOLID WASTE FUND (page 9)
Revenue 38,291,420 25,871,512 - 12,419,909 67.6% 23,000,418 Expenditures 40,726,490 23,059,017 8,224,047 9,443,426 76.8% 21,015,052 Addition to / (use of) reserves (2,435,069) 2,812,495 (8,224,047) 1,985,366 WATER OPERATING FUND (page 10)
Revenue 74,712,846 52,091,093 - 22,621,753 69.7% 47,584,667 Expenditures 81,628,435 47,046,842 6,977,992 27,603,601 66.2% 39,501,719 Addition to / (use of) reserves (6,915,589) 5,044,252 (6,977,992) 8,082,947 WASTEWATER OPERATING FUND (page 11)
Revenue 29,143,452 19,454,052 - 9,689,400 66.8% 18,002,252 Expenditures 30,373,752 18,398,557 2,181,102 9,794,093 67.8% 17,336,316 Addition to / (use of) reserves (1,230,300) 1,055,495 (2,181,102) 665,935 DOWNTOWN PARKING FUND (page 12)
Revenue 11,563,643 7,117,233 - 4,446,410 61.5% 6,605,847 Expenditures 12,008,122 7,613,529 829,121 3,565,472 70.3% 6,550,147 Addition to / (use of) reserves (444,478) (496,296) (829,121) 55,699 AIRPORT OPERATING FUND (page 13)
Revenue 29,944,075 19,671,078 - 10,272,996 65.7% 16,562,540 Expenditures 31,216,194 18,185,468 2,910,984 10,119,742 67.6% 16,691,295 Addition to / (use of) reserves (1,272,119) 1,485,611 (2,910,984) (128,755) GOLF COURSE FUND (page 14)
Revenue 4,206,765 2,955,498 - 1,251,267 70.3% 2,676,706 Expenditures 3,788,996 2,138,544 1,424,767 225,685 94.0% 1,970,808 Addition to / (use of) reserves 417,769 816,955 (1,424,767) 705,898 FACILITIES MANAGEMENT FUND (page 15)
Revenue 7,296,218 4,548,600 - 2,747,619 62.3% 4,564,888 Expenditures 7,591,854 4,449,583 133,727 3,008,545 60.4% 4,512,621 Addition to / (use of) reserves (295,636) 99,017 (133,727) 52,266

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Summary by Fund
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

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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 Eight Month Ended February 29, 2024 ( 67% of Fiscal Year) FLEET REPLACEMENT FUND (page 16)
Revenue 5,387,373 3,914,404 - 1,472,969 72.7% 2,605,530 Expenditures 7,836,694 1,597,308 1,677,397 4,561,988 41.8% 1,015,614 Addition to / (use of) reserves (2,449,321) 2,317,096 (1,677,397) 1,589,916 FLEET MAINTENANCE FUND (page 17)
Revenue 3,282,335 2,153,528 - 1,128,806 65.6% 2,163,167 Expenditures 3,529,116 2,268,366 275,525 985,225 72.1% 1,995,463 Addition to / (use of) reserves (246,781) (114,837) (275,525) 167,704 SELF INSURANCE TRUST FUND (page 18)
Revenue 17,330,117 11,632,455 - 5,697,662 67.1% 8,688,833 Expenditures 20,041,251 11,446,538 1,092,247 7,502,465 62.6% 8,962,568 Addition to / (use of) reserves (2,711,134) 185,916 (1,092,247) (273,735) INFORMATION TECHNOLOGY FUND (page 19)
Revenue 6,537,548 4,245,385 - 2,292,163 64.9% 3,385,559 Expenditures 6,717,821 4,739,848 60,413 1,917,560 71.5% 3,584,329 Addition to / (use of) reserves (180,273) (494,463) (60,413) (198,769) WATERFRONT OPERATING FUND (page 20)
Revenue 19,027,470 13,537,398 - 5,490,072 71.1% 12,798,542 Expenditures 19,311,599 12,055,876 886,091 6,369,632 67.0% 11,777,261 Addition to / (use of) reserves (284,129) 1,481,522 (886,091) 1,021,282 SANTA BARBARA CLEAN ENERGY FUND (page 21)
Revenue 47,660,583 30,201,858 - 17,458,725 63.4% 21,767,512 Expenditures 39,573,105 18,988,187 2,371,825 18,213,092 54.0% 21,704,033 Addition to / (use of) reserves 8,087,478 11,213,671 (2,371,825) 63,478 ENERGY AND CLIMATE MANAGEMENT FUND (page 22)
Revenue 3,078,032 1,939,687 - 1,138,345 63.0% 1,785,312 Expenditures 3,606,976 1,810,676 252,663 1,543,637 57.2% 1,497,001 Addition to / (use of) reserves (528,944) 129,012 (252,663) 288,311

TOTAL FOR ALL FUNDS
Revenue 504,693,458 329,195,725 503 175,498,235 65.2% 296,975,909 Expenditures 541,528,021 320,982,641 34,264,291 186,281,088 65.6% 277,071,519 Addition to / (use of) reserves (36,834,563) 8,213,085 (34,264,794) 19,904,391 ** 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.

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Revised YTD Remaining Percent Previous Change Over
Budget Actual Balance Received YTD Prior Year
TAXES
Sales and Use 30,650,000 20,076,260 10,573,740 65.5% 20,123,714 -0.2% Measure C Sales Tax 31,900,000 21,520,063 10,379,937 67.5% 21,562,823 -0.2% Property Taxes 46,371,460 26,392,554 19,978,906 56.9% 24,327,523 0.0% Utility Users Tax 7,375,415 5,216,764 2,158,651 70.7% 5,276,518 -1.1% Transient Occupancy Tax 27,586,000 18,404,134 9,181,866 66.7% 18,597,310 -1.0% Business License 2,850,000 2,240,258 609,742 78.6% 1,735,867 29.1% Cannabis Excise Tax 1,518,910 794,954 723,956 52.3% 888,347 -10.5% Real Property Transfer Tax 1,200,000 542,770 657,230 45.2% 655,976 -17.3% Total Tax Revenues 149,451,785 95,187,758 54,264,027 63.7% 93,168,078 2.2%

LICENSES & PERMITS
Licenses & Permits 233,310 79,205 154,105 33.9% 109,829 -27.9% Total 233,310 79,205 154,105 33.9% 109,829 -27.9%

FINES & FORFEITURES
Police 2,346,201 963,299 1,382,902 41.1% 857,229 12.4%
Other Fines & Forfeitures 664,600 403,503 261,097 60.7% 312,236 29.2% Total 3,010,801 1,366,802 1,643,999 45.4% 1,169,465 16.9%

USE OF MONEY & PROPERTY
Investment Income 1,456,485 1,368,250 88,235 93.9% 851,957 60.6% Rents & Concessions 1,612,593 891,823 720,770 55.3% 903,743 -1.3% Total 3,069,078 2,260,074 809,004 73.6% 1,755,700 28.7%

INTERGOVERNMENTAL
Library 872,292 436,145 436,146 50.0% 452,799 -3.7%
Fire 1,100,000 974,697 125,303 88.6% 456,502 113.5%
Other Intergovernmental 4,591,251 498,462 4,092,789 10.9% 427,294 16.7% Total 6,563,543 1,909,304 4,654,238 29.1% 1,336,595 42.8%

FEES & SERVICE CHARGES
Community Development 7,101,000 4,968,983 2,132,017 70.0% 4,910,847 1.2% Parks & Recreation 4,428,896 2,859,929 1,568,967 64.6% 2,538,841 12.6% Other Service Charges 2,743,281 2,097,568 645,713 76.5% 2,822,489 -25.7% Total 14,273,177 9,926,480 4,346,698 69.5% 10,272,177 -3.4%

OTHER REVENUES
Interfund Charges & Reimbursement 13,289,997 8,607,334 4,682,663 64.8% 7,088,185 21.4% Overhead Indirect Allocations 9,380,779 6,169,379 3,211,400 65.8% 6,380,381 -3.3% Interfund Transfers 270,000 162,247 107,753 60.1% 441,206 -63.2% Interfund Loans 24,140 - 24,140 0.0% 16,093 -100.0%
Miscellaneous 1,096,592 483,563 613,029 44.1% 243,647 98.5% Donations 110,509 50,459 60,051 45.7% 52,342 -3.6%
Franchise Fees 6,457,869 3,659,340 2,798,529 56.7% 2,750,438 33.0% Total 30,629,886 19,132,322 11,497,564 62.5% 16,972,293 12.7% Subtotal Non-Tax Revenues 57,779,795 34,674,187 23,105,609 60.0% 31,616,059 9.7% TOTAL REVENUES 207,231,580 129,861,944 77,369,636 62.7% 124,784,137 4.1%

CITY OF SANTA BARBARA
General Fund
Interim Statement of Budgeted and Actual Revenues
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

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YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD

GENERAL GOVERNMENT
Mayor & City Council
MAYOR & CITY COUNCIL 1,153,795 723,177 1,818 428,800 62.8% 664,984 ARTS AND COMMUNITY PROMOTIONS 2,251,993 1,803,500 360,379 88,115 96.1% 1,626,325 Total 3,405,788 2,526,677 362,197 516,914 84.8% 2,291,308 City Attorney
CITY ATTORNEY - - - - #DIV/0! -
CITY ATTORNEY-ADMINISTRATION 1,407,365 672,147 89,959 645,259 54.2% 704,512 CITY ATTORNEY-ADVISORY 1,555,824 899,738 18,177 637,908 59.0% 1,108,774 CITY ATTORNEY-CIVIL LITIGATION 1,701,377 838,532 - 862,845 49.3% 893,309 CITY ATTORNEY-CODE ENFORCEMENT 1,877,769 491,360 8,750 1,377,659 26.6% 303,369 Total 6,542,335 2,901,776 116,886 3,523,673 46.1% 3,009,964 Administration
CITY ADMINISTRATOR 2,760,628 1,971,963 120,326 668,339 75.8% 1,431,429 EMPLOYEE RELATIONS 2,857 1,905 - 952 66.7% -
CITY TV 656,271 340,789 20,806 294,675 55.1% 504,567
CITY CLERK 812,245 469,782 32,804 309,659 61.9% 429,566 Total 4,232,001 2,784,903 173,936 1,273,161 69.9% 2,365,562 Human Resources
HUMAN RESOURCES 2,453,343 1,666,266 120,439 666,639 72.8% 1,293,058 EMPLOYEE RELATIONS 348,635 240,275 108,271 88 100.0% 191,630 EMPLOYEE DEVELOPMENT 90,234 19,093 3,621 67,520 25.2% 12,538 Total 2,892,212 1,925,634 232,331 734,247 74.6% 1,497,226 Finance
ADMINISTRATION 345,628 229,706 483 115,438 66.6% 224,052 REVENUE & CASH MANAGEMENT 983,660 390,352 36,147 557,161 43.4% 369,299 CASHIERING & COLLECTION 1,053,922 543,838 250,603 259,481 75.4% 369,651 LICENSES & PERMITS 699,741 234,570 525 464,647 33.6% 613,464 BUDGET MANAGEMENT 895,252 633,277 415,425 (153,451) 117.1% 534,971 ACCOUNTING 1,086,039 703,499 44,964 337,576 68.9% 733,766 Miscellaneous 477,161 322,364 - 154,797 67.6% 326,855
ACCOUNTS PAYABLE 262,472 179,925 14,850 67,697 74.2% 194,366 CITY BILLING & CUSTOMER SERVICE 906,178 454,763 - 451,415 50.2% 464,701 PURCHASING 775,791 531,294 48 244,449 68.5% 553,380
CENTRAL WAREHOUSE 224,348 138,305 - 86,043 61.6% 162,685 MAIL SERVICES 173,608 106,075 11,638 55,895 67.8% 103,830 Total 7,883,800 4,467,969 774,683 2,641,148 66.5% 4,651,019 TOTAL GENERAL GOVERNMENT 24,956,136 14,606,959 1,660,033 8,689,143 65.2% 13,815,079 `
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

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YTD
Expended
Revised YTD Encum- Remaining and Previous
Budget Actual brances Balance Encumbered YTD
`
General Fund
Interim Statement of Appropriations, Expenditures and Encumbrances For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

PUBLIC SAFETY
Police
CHIEF'S STAFF 2,590,022 1,738,544 35,083 816,395 68.5% 976,374 BUSINESS OFFICE 948,093 499,756 938 447,399 52.8% 393,267 RECORDS BUREAU 2,124,211 1,182,083 1,644 940,484 55.7% 1,102,220 STRATEGIC OPERATIONS AND PERSONNEL 2,339,144 1,161,710 9,390 1,168,045 50.1% 1,277,225 PROPERTY ROOM 289,940 189,106 - 100,834 65.2% 179,210
TRAINING, RECRUITMENT AND WELLNESS 3,709,897 1,693,086 74,563 1,942,248 47.6% 1,009,960 RANGE AND EQUIPMENT 2,830,350 1,832,394 397,163 600,793 78.8% 1,024,639 COMMUNITY & MEDIA RELATIONS 213,986 104,636 - 109,350 48.9% 98,767 INFORMATION TECHNOLOGY/CRIME ANALYSIS 1,866,758 1,349,603 90,658 426,497 77.2% 1,303,540 CRIMINAL INVESTIGATIONS & INTERNAL OP'S 7,854,189 3,959,929 6,442 3,887,818 50.5% 3,821,122 CRIME LAB 192,961 113,407 - 79,554 58.8% 104,989
FIELD OPERATIONS DIVISION 23,466,662 14,311,145 19,417 9,136,100 61.1% 14,147,440 TRAFFIC 1,164,209 590,671 1,070 572,469 50.8% 307,407
SPECIAL EVENTS 663,763 587,162 544 76,057 88.5% 461,686 STREET CRIMES UNIT 3,282,102 1,226,001 - 2,056,101 37.4% 962,330 SPECIAL ENFORCEMENT TEAM 45,723 82,823 - (37,100) 181.1% 152,266 PARKING AND STREET SWEEPING 491,120 191,768 - 299,352 39.0% 269,332 PARKING ENFORCEMENT 1,068,289 414,182 - 654,107 38.8% 547,498 COMBINED COMMUNICATIONS CENTER 4,006,882 2,651,972 - 1,354,910 66.2% 2,298,212 ANIMAL CONTROL 1,034,755 574,271 254,721 205,763 80.1% 509,600 Total 60,183,056 34,454,247 891,631 24,837,178 58.7% 30,947,084 Fire
ADMINISTRATION 1,684,511 1,196,481 - 488,031 71.0% 863,747 EMERGENCY SERVICES AND PUBLIC ED 437,700 274,501 - 163,199 62.7% 312,266 PREVENTION 1,333,175 822,234 525 510,416 61.7% 867,146
WILDLAND FIRE MITIGATION PROGRAM 975,632 480,662 71,072 423,898 56.6% 249,993 OPERATIONS 26,262,617 18,707,086 103,310 7,452,221 71.6% 17,319,537 TRAINING AND RECRUITMENT 951,870 635,599 - 316,271 66.8% 549,747 ARFF 3,222,082 2,318,600 - 903,482 72.0% 2,185,842
Total 34,867,587 24,435,163 174,906 10,257,518 70.6% 22,348,279 TOTAL PUBLIC SAFETY 95,050,642 58,889,410 1,066,537 35,094,695 63.1% 53,295,363

PUBLIC WORKS
Public Works
ADMINISTRATION 1,727,707 979,509 26,428 721,770 58.2% 828,583 ENGINEERING SVCS 9,013,027 5,123,111 40,931 3,848,986 57.3% 3,951,007 PUBLIC RT OF WAY MGMT 2,112,717 1,255,573 19,053 838,092 60.3% 1,068,182 ENVIRONMENTAL PROGRAMS 9,516 (0) - 9,516 0.0% 318,444
WATER RESOURCES - 17,046 - (17,046) #DIV/0! -
Total 12,862,969 7,375,239 86,412 5,401,318 58.0% 6,166,215 TOTAL PUBLIC WORKS 12,862,969 7,375,239 86,412 5,401,318 58.0% 6,166,215

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COMMUNITY SERVICES
Parks & Recreation
REC PROGRAM MGMT 1,322,980 737,615 72,053 513,312 61.2% 536,323 FACILITIES & SPECIAL EVENTS 2,042,566 1,139,127 214,706 688,733 66.3% 986,305 YOUTH ACTIVITIES 1,615,519 852,582 20,089 742,847 54.0% 922,208 ACTIVE ADULTS 1,039,085 631,488 4,941 402,656 61.2% 569,758 AQUATICS 1,904,020 1,310,909 32,960 560,150 70.6% 1,253,367 SPORTS 905,488 541,058 62,593 301,837 66.7% 420,513
TENNIS 580,339 345,618 109,682 125,039 78.5% 269,503
NEIGHBORHOOD & OUTREACH SERV 1,277,373 746,665 18,550 512,157 59.9% 724,214 ADMINISTRATION 1,469,985 915,610 858 553,518 62.3% 774,071 PROJECT MANAGEMENT TEAM 878,707 512,643 24,178 341,886 61.1% 422,765 PARK OPERATIONS MANAGEMENT 1,250,419 803,678 2,046 444,695 64.4% 678,834 GROUNDS & FACILITIES MAINTENANCE 6,782,951 4,212,172 218,064 2,352,714 65.3% 3,674,997 FORESTRY 1,984,435 1,174,284 49,502 760,650 61.7% 977,886 BEACH MAINTENANCE 176,154 123,260 14,872 38,022 78.4% 75,192 MEDIANS PARKWAYS & CONTRACTS 551,350 251,777 162,168 137,405 75.1% 320,276 Total 23,781,372 14,298,487 1,007,262 8,475,623 64.4% 12,606,211 Library
ADMINISTRATION 1,086,543 652,104 84,808 349,631 67.8% 591,516 CENTRAL LIBRARY 5,913,814 3,421,988 62,796 2,429,030 58.9% 3,404,303 EASTSIDE LIBRARY 672,773 332,681 3,403 336,689 50.0% 185,188 LIBRARY ON THE GO 290,540 156,629 - 133,911 53.9% 87,249 ADULT EDUCATION 368,863 172,107 - 196,756 46.7% 33,945
Total 8,332,532 4,735,508 151,008 3,446,017 58.6% 4,302,201 TOTAL COMMUNITY SERVICES 32,113,905 19,033,995 1,158,270 11,921,640 62.9% 16,908,413

COMMUNITY DEVELOPMENT
Community Development
ADMINISTRATION 2,353,352 1,420,471 42,900 889,982 62.2% 1,312,530 RENTAL HOUSING MEDIATION 353,511 228,196 75 125,240 64.6% 212,112 HUMAN SERVICES 984,320 452,499 427,477 104,344 89.4% 368,792 LONG RANGE PLAN & SPEC STUDY 1,064,113 671,977 2,295 389,841 63.4% 586,664 DEVEL & ENVIRONMENTAL REVIEW 1,897,042 1,058,188 51,274 787,580 58.5% 1,019,088 ZONING INFO & ENFORCEMENT 1,678,546 874,379 9,264 794,903 52.6% 855,364 DESIGN REV & HIST PRESERVATION 1,707,955 1,003,756 2,737 701,462 58.9% 902,208 BLDG INSP & CODE ENFORCEMENT 1,897,080 1,117,480 5,216 774,384 59.2% 960,737 RECORDS ARCHIVES & CLER SVCS 759,834 419,541 28,214 312,079 58.9% 441,765 BLDG COUNTER & PLAN REV SVCS 2,876,859 1,416,556 341,518 1,118,785 61.1% 1,543,515 CODE COMPLIANCE 972,215 586,903 100 385,212 60.4% 354,704 Total 16,544,828 9,249,946 911,069 6,383,812 61.4% 8,557,479 TOTAL COMMUNITY DEVELOPMENT 16,544,828 9,249,946 911,069 6,383,812 61.4% 8,557,479

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SUSTAINABILITY AND RESILIENCE
Sustainability and Resilience
ADMINISTRATION 58,387 5,182 43,594 9,611 83.5% 17,562
ABATEMENT 578,836 93,376 40,476 444,985 23.1% -
Total 637,223 98,558 84,069 454,596 28.7% 17,562
TOTAL SUSTAINABILITY AND RESILIENCE 637,223 98,558 84,069 454,596 28.7% 17,562

NON-DEPARTMENTAL
Non-Departmental
ANTICIPATED SALARY SAVINGS (6,000,000) - - (6,000,000) 0.0% - MEASURE C SALES TAX 49,137,305 33,524,687 - 15,612,618 68.2% 18,932,942 TRANSFERS OUT 4,198,142 665,266 - 3,532,876 15.8% 572,495 CAPITAL OUTLAY TRANSFER 3,945,000 3,740,243 - 204,757 94.8% 691,742 APPROP. RESERVE 131,469 - - 131,469 0.0% -
Total 51,411,916 37,930,196 - 13,481,720 73.8% 20,197,179 TOTAL NON-DEPARTMENTAL 51,411,916 37,930,196 - 13,481,720 73.8% 20,197,179 TOTAL EXPENDITURES 233,577,618 147,184,304 4,966,390 81,426,924 65.1% 118,957,291 ** 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.

Page 7 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

TRAFFIC SAFETY FUND
Revenue 245,000 136,637 - 108,363 55.8% 130,041
Expenditures 245,000 136,637 - 108,363 55.8% 130,041
Revenue Less Expenditures - - - - -

CREEK RESTORATION/WATER QUALITY IMPRVMT
Revenue 6,047,071 4,161,144 - 1,885,927 68.8% 3,874,584 Expenditures 7,299,835 3,748,422 666,964 2,884,449 60.5% 2,771,695 Revenue Less Expenditures (1,252,764) 412,722 (666,964) (998,522) 1,102,888

COMMUNITY DEVELOPMENT BLOCK GRANT
Revenue 2,103,297 663,499 - 1,439,798 31.5% 261,617
Expenditures 2,092,081 470,628 1,207,074 414,379 80.2% 546,033 Revenue Less Expenditures 11,216 192,871 (1,207,074) 1,025,418 (284,416)

COUNTY LIBRARY
Revenue 492,475 260,587 - 231,888 52.9% 153,409
Expenditures 492,201 280,292 18,756 193,152 60.8% 267,472 Revenue Less Expenditures 274 (19,705) (18,756) 38,736 (114,063)

STREETS FUND
Revenue 13,231,712 8,906,963 - 4,324,749 67.3% 8,923,396 Expenditures 14,540,361 9,546,778 101,812 4,891,771 66.4% 8,198,915 Revenue Less Expenditures (1,308,649) (639,814) (101,812) (567,022) 724,481

MEASURE A FUND
Revenue 5,298,579 3,178,203 - 2,120,376 60.0% 3,261,062 Expenditures 6,152,209 3,758,136 256,889 2,137,184 65.3% 2,759,856 Revenue Less Expenditures (853,630) (579,933) (256,889) (16,808) 501,206

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
Special Revenue Funds
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

Page 8 ends

Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service charges 37,623,904 25,554,608 - 12,069,296 67.9% 22,438,376 Other Fees & Charges 355,650 34,683 - 320,967 9.8% 23,571 Investment Income 130,300 118,377 - 11,923 90.8% 74,107 Grants 152,678 151,250 - 1,428 99.1% 155,450
Miscellaneous 28,888 12,593 - 16,295 43.6% 308,914
TOTAL REVENUES 38,291,420 25,871,512 - 12,419,909 67.6% 23,000,418

EXPENSES
Salaries & Benefits 2,168,758 1,094,449 - 1,074,309 50.5% 960,142 Materials, Supplies & Services 36,829,217 21,214,152 8,086,884 7,528,181 79.6% 19,518,375 Special Projects 1,292,874 640,129 92,440 560,305 56.7% 429,256 Transfers-Out 50,000 33,333 - 16,667 66.7% 33,333
Capital Outlay Transfers - - - - 0.0% 649
Equipment 322,223 76,953 44,723 200,548 37.8% 73,297
Other 40,000 - - 40,000 0.0% -
Appropriated Reserve 23,417 - - 23,417 0.0% -
TOTAL EXPENSES 40,726,490 23,059,017 8,224,047 9,443,426 76.8% 21,015,052 Revenue Less Expense (2,435,069) 2,812,495 (8,224,047) 2,976,483 1,985,366

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

SOLID WASTE FUND

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Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Water Sales- Metered 61,627,176 42,655,057 - 18,972,119 69.2% 40,291,555 Service Charges 251,460 156,171 - 95,289 62.1% 178,328
Cater JPA Treatment Charges 2,400,000 1,335,476 - 1,064,524 55.6% 1,390,060 Investment Income 1,915,150 1,780,876 - 134,274 93.0% 1,183,389 Grants - 15,212 - (15,212) 0.0% -
Reimbursements 8,386,167 5,388,080 - 2,998,087 64.2% 4,250,872 Miscellaneous 132,893 760,222 - (627,329) 572.1% 290,463 TOTAL REVENUES 74,712,846 52,091,093 - 22,621,753 69.7% 47,584,667

EXPENSES
Salaries & Benefits 14,359,118 8,994,251 - 5,364,867 62.6% 8,364,236 Materials, Supplies & Services 26,521,023 11,979,283 6,833,406 7,708,335 70.9% 10,471,120 Special Projects 840,997 139,513 24,115 677,370 19.5% 381,925 Water Purchases 9,800,000 5,330,425 - 4,469,575 54.4% 5,208,516 Debt Service 9,188,111 5,549,867 - 3,638,244 60.4% 5,533,761 Capital Outlay Transfers 20,007,618 14,771,968 - 5,235,650 73.8% 9,386,791 Equipment 315,884 118,082 12,223 185,579 41.3% 53,621
Capitalized Fixed Assets 411,883 126,289 104,248 181,346 56.0% 66,602 Other 33,800 37,164 4,000 (7,364) 121.8% 35,148
Appropriated Reserve 150,000 - - 150,000 0.0% -
TOTAL EXPENSES 81,628,435 47,046,842 6,977,992 27,603,601 66.2% 39,501,719 Revenue Less Expense (6,915,589) 5,044,252 (6,977,992) (4,981,849) 8,082,947

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

WATER OPERATING FUND

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Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service Charges 28,099,437 18,705,061 - 9,394,376 66.6% 17,318,144 Fees 613,443 357,203 - 256,240 58.2% 422,650
Investment Income 364,500 372,716 - (8,216) 102.3% 225,611 Rents & Concessions 61,072 34,284 - 26,788 56.1% 32,668 Grants - (15,212) - 15,212 0.0% -
Miscellaneous 5,000 - - 5,000 0.0% 3,179
TOTAL REVENUES 29,143,452 19,454,052 - 9,689,400 66.8% 18,002,252

EXPENSES
Salaries & Benefits 9,225,935 5,985,498 - 3,240,437 64.9% 5,396,291 Materials, Supplies & Services 11,898,202 6,569,102 1,857,267 3,471,833 70.8% 5,894,368 Special Projects 1,332,061 413,154 307,409 611,498 54.1% 256,375 Debt Service 3,552,087 2,510,187 - 1,041,900 70.7% 2,532,187 Capital Outlay Transfers 4,056,315 2,704,210 - 1,352,105 66.7% 3,162,037 Equipment 161,170 73,770 11,426 75,974 52.9% 37,737
Capitalized Fixed Assets 145,381 141,123 - 4,258 97.1% 55,810 Other 2,600 1,513 5,000 (3,913) 250.5% 1,513
TOTAL EXPENSES 30,373,752 18,398,557 2,181,102 9,794,093 67.8% 17,336,316 Revenue Less Expense (1,230,300) 1,055,495 (2,181,102) (104,694) 665,935 Miscellaneous

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

WASTEWATER OPERATING FUND

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Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Improvement Tax 1,000,000 609,844 - 390,156 61.0% 802,996 Parking Fees 9,023,365 5,385,663 - 3,637,703 59.7% 5,021,827 Other Fees & Charges 15,606 - - 15,606 0.0% 8,736
Investment Income 77,000 83,105 - (6,105) 107.9% 49,896 Rents & Concessions 374,590 281,060 - 93,530 75.0% 179,324 Miscellaneous 170,183 88,963 - 81,220 52.3% 67,239
Operating Transfers-In 902,899 668,599 - 234,299 74.1% 475,829 TOTAL REVENUES 11,563,643 7,117,233 - 4,446,410 61.5% 6,605,847

EXPENSES
Salaries & Benefits 5,769,667 3,502,224 - 2,267,443 60.7% 3,224,969 Materials, Supplies & Services 4,713,116 3,247,235 591,811 874,070 81.5% 2,698,805 Special Projects 575,730 255,715 237,310 82,705 85.6% 140,746 Transfer-Out 4,600 - - 4,600 0.0% -
Capital Outlay Transfers 905,000 603,333 - 301,667 66.7% 480,725 Equipment 30,008 5,021 - 24,987 16.7% 4,903
Appropriated Reserve 10,000 - - 10,000 0.0% -
TOTAL EXPENSES 12,008,122 7,613,529 829,121 3,565,472 70.3% 6,550,147 Revenue Less Expense (444,478) (496,296) (829,121) 880,939 55,699 Miscellaneous
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 Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

DOWNTOWN PARKING FUND

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Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Leases-Commercial/Industrial 5,500,077 3,748,777 - 1,751,300 68.2% 2,898,952 Leases-Terminal 10,778,396 6,685,653 - 4,092,742 62.0% 6,748,101 Leases-Non-Commercial Aviation 4,689,174 3,399,032 - 1,290,142 72.5% 2,823,834 Leases-Commercial Aviation 6,914,542 4,303,916 - 2,610,625 62.2% 3,740,104 Investment Income 467,500 430,687 - 36,813 92.1% 288,622 Grants 437,036 437,036 - - 100.0% -
Service Charges 1,669 - - 1,669 0.0% 1,265
Miscellaneous 155,682 136,767 - 18,915 87.8% 61,662
Operating Transfers-In 1,000,000 529,210 - 470,790 52.9% - TOTAL REVENUES 29,944,075 19,671,078 - 10,272,996 65.7% 16,562,540

EXPENSES
Salaries & Benefits 11,411,379 6,792,454 - 4,618,925 59.5% 6,412,338 Materials, Supplies & Services 13,646,781 8,258,038 2,478,689 2,910,054 78.7% 7,284,287 Special Projects 1,847,707 672,186 306,314 869,206 53.0% 422,230 Transfer-Out 628,167 291,778 - 336,389 46.4% 166,667
Debt Service 1,559,205 1,039,470 - 519,735 66.7% 1,034,500 Capital Outlay Transfers 1,676,136 1,117,424 - 558,712 66.7% 1,323,666 Equipment 258,353 14,118 64,071 180,164 30.3% 47,608
Capitalized Fixed Assets 56,910 - 56,910 - 100.0% -
Other - - 5,000 (5,000) 0.0% -
Appropriated Reserve 131,556 - - 131,556 0.0% -
TOTAL EXPENSES 31,216,194 18,185,468 2,910,984 10,119,742 67.6% 16,691,295 Revenue Less Expense (1,272,119) 1,485,611 (2,910,984) 153,255 (128,755) Miscellaneous
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 Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

AIRPORT OPERATING FUND
from the operating fund is shown in the Capital Transfers.

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Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Fees & Card Sales 3,918,765 2,726,777 - 1,191,988 69.6% 2,496,359 Investment Income 57,000 66,735 - (9,735) 117.1% 35,176 Rents & Concessions 231,000 160,874 - 70,126 69.6% 144,698 Miscellaneous - 1,113 - (1,113) 0.0% 473
TOTAL REVENUES 4,206,765 2,955,498 - 1,251,267 70.3% 2,676,706

EXPENSES
Salaries & Benefits 110,567 73,528 - 37,039 66.5% 55,546 Materials, Supplies & Services 3,376,451 1,865,015 1,424,767 86,668 97.4% 1,763,098 Capital Outlay Transfers 301,978 200,000 - 101,978 66.2% 152,000 TOTAL EXPENSES 3,788,996 2,138,544 1,424,767 225,685 94.0% 1,970,808 Revenue Less Expense 417,769 816,955 (1,424,767) 1,025,582 705,898 Miscellaneous
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 Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

GOLF COURSE FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Service Charges 3,645,995 2,340,904 - 1,305,091 64.2% 2,237,258 Work Orders - Bldg Maint. 3,644,723 2,207,696 - 1,437,028 60.6% 2,327,541 Miscellaneous 5,500 - - 5,500 0.0% 89
TOTAL REVENUES 7,296,218 4,548,600 - 2,747,619 62.3% 4,564,888

EXPENSES
Salaries & Benefits 5,150,098 2,729,479 - 2,420,619 53.0% 2,844,558 Materials, Supplies & Services 2,128,986 1,500,781 51,536 576,669 72.9% 1,296,154 Special Projects 299,172 214,275 82,191 2,706 99.1% 239,068 Capital Outlay Transfers 3,598 2,399 - 1,199 66.7% 129,065 Equipment 10,000 2,649 - 7,351 26.5% 3,776
TOTAL EXPENSES 7,591,854 4,449,583 133,727 3,008,545 60.4% 4,512,621 Revenue Less Expense (295,636) 99,017 (133,727) (260,926) 52,266

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

FACILITIES MANAGEMENT FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Vehicle Rental Charges 4,963,096 3,415,526 - 1,547,570 68.8% 1,981,730 Investment Income 351,897 358,306 - (6,409) 101.8% 191,703 Rents & Concessions 4,380 68,782 - (64,402) 1570.4% 68,782 Miscellaneous 68,000 71,791 - (3,791) 105.6% 164,537
Operating Transfers-In - - - - 0.0% 198,778
TOTAL REVENUES 5,387,373 3,914,404 - 1,472,969 72.7% 2,605,530

EXPENSES
Salaries & Benefits 207,091 112,557 - 94,534 54.4% 119,769 Materials, Supplies & Services 25,316 23,176 - 2,140 91.5% 3,307 Debt Service 606,372 303,186 303,186 1 100.0% 303,186
Capitalized Fixed Assets 6,997,915 1,158,390 1,374,212 4,465,312 36.2% 589,352 TOTAL EXPENSES 7,836,694 1,597,308 1,677,397 4,561,988 41.8% 1,015,614 Revenue Less Expense (2,449,321) 2,317,096 (1,677,397) (3,089,019) 1,589,916

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

FLEET REPLACEMENT FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Vehicle Maintenance Charges 3,162,732 2,057,928 - 1,104,804 65.1% 2,094,303 Reimbursements 5,000 6,667 - (1,667) 133.3% 3,333
Miscellaneous 114,602 88,934 - 25,669 77.6% 65,531
TOTAL REVENUES 3,282,335 2,153,528 - 1,128,806 65.6% 2,163,167

EXPENSES
Salaries & Benefits 1,675,980 1,016,941 - 659,039 60.7% 1,013,245 Materials, Supplies & Services 1,757,418 1,211,615 262,766 283,037 83.9% 954,421 Special Projects 71,367 37,564 12,759 21,043 70.5% 25,940 Capital Outlay Transfers 1,467 978 - 489 66.7% 978
Equipment 7,884 1,267 - 6,617 16.1% 879
Capitalized Fixed Assets - - - - 0.0% -
Appropriated Reserve 15,000 - - 15,000 0.0% -
TOTAL EXPENSES 3,529,116 2,268,366 275,525 985,225 72.1% 1,995,463 Revenue Less Expense (246,781) (114,837) (275,525) 143,581 167,704

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

FLEET MAINTENANCE FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Insurance Premiums 11,001,421 7,338,998 - 3,662,423 66.7% 5,105,733 Workers' Compensation Premiums 5,724,102 3,851,706 - 1,872,396 67.3% 3,046,172 OSH Charges 301,269 202,721 - 98,548 67.3% 195,316
Unemployment Insurance Premium 200,000 127,941 - 72,059 64.0% 273,510 Investment Income 27,500 60,538 - (33,038) 220.1% 17,552 Operating Transfers-In 75,825 50,550 - 25,275 66.7% 50,550 TOTAL REVENUES 17,330,117 11,632,455 - 5,697,662 67.1% 8,688,833

EXPENSES
Salaries & Benefits 838,683 559,770 - 278,913 66.7% 542,942 Materials, Supplies & Services 19,202,159 10,886,040 1,092,247 7,223,871 62.4% 8,418,874 Capital Outlay Transfers 409 273 - 136 66.7% 273
Equipment - 456 - (456) 0% 479
TOTAL EXPENSES 20,041,251 11,446,538 1,092,247 7,502,465 62.6% 8,962,568 Revenue Less Expense (2,711,134) 185,916 (1,092,247) (1,804,802) (273,735) 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 Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

SELF INSURANCE TRUST FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Service charges 6,208,379 4,120,274 - 2,088,105 66.4% 3,385,559 Operating Transfers-In 329,169 125,111 - 204,058 38.0% - TOTAL REVENUES 6,537,548 4,245,385 - 2,292,163 64.9% 3,385,559

EXPENSES
Salaries & Benefits 3,901,398 2,509,557 - 1,391,841 64.3% 1,882,729 Materials, Supplies & Services 2,559,214 2,065,674 60,413 433,127 83.1% 1,610,606 Special Projects 200 150 - 50 75.0% 632
Capital Outlay Transfers 240,830 160,553 - 80,277 66.7% 74,451 Equipment 13,000 3,913 - 9,087 30.1% 15,910
Appropriated Reserve 3,179 - - 3,179 0.0% -
TOTAL EXPENSES 6,717,821 4,739,848 60,413 1,917,560 71.5% 3,584,329 Revenue Less Expense (180,273) (494,463) (60,413) 374,603 (198,769) from the operating fund is shown in the Capital Transfers.

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

INFORMATION TECHNOLOGY FUND
NOTE-These figures reflect the operating fund only. Though the capital fund is excluded, the current year contribution

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Revised YTD Encum- Remaining Percent of Previous
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REVENUES
Leases - Commercial 2,350,000 1,603,508 - 746,492 68.2% 1,594,718 Leases - Food Service 3,575,000 2,336,110 - 1,238,890 65.3% 2,459,986 Slip Rental Fees 5,578,030 3,790,439 - 1,787,591 68.0% 3,451,802 Visitors Fees 765,000 541,692 - 223,308 70.8% 497,709
Slip Transfer Fees 1,100,000 947,875 - 152,125 86.2% 845,475 Parking Revenue 3,596,500 2,867,283 - 729,217 79.7% 2,553,470 Wharf Parking 325,000 199,921 - 125,079 61.5% 191,139
Other Fees & Charges 272,740 164,825 - 107,915 60.4% 170,386 Investment Income 243,200 254,368 - (11,168) 104.6% 157,618 Rents & Concessions 435,000 306,002 - 128,998 70.3% 305,684 Miscellaneous 787,000 525,374 - 261,626 66.8% 557,802
TOTAL REVENUES 19,027,470 13,537,398 - 5,490,072 71.1% 12,798,542

EXPENSES
Salaries & Benefits 8,132,167 5,083,614 - 3,048,554 62.5% 5,050,675 Materials, Supplies & Services 6,971,241 4,254,223 856,362 1,860,657 73.3% 3,518,469 Special Projects 225,565 113,635 - 111,930 50.4% 137,139 Debt Service 2,035,239 1,466,594 - 568,645 72.1% 1,467,316 Capital Outlay Transfers 1,650,000 1,100,000 - 550,000 66.7% 1,583,333 Equipment 174,040 36,297 10,882 126,860 27.1% 18,817
Capitalized Fixed Assets 21,347 - 13,847 7,500 64.9% -
Other 2,000 1,513 5,000 (4,513) 325.6% 1,513
Appropriated Reserve 100,000 - - 100,000 0.0% -
TOTAL EXPENSES 19,311,599 12,055,876 886,091 6,369,632 67.0% 11,777,261 Revenue Less Expense (284,129) 1,481,522 (886,091) (879,560) 1,021,282 Miscellaneous
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 Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

WATERFRONT OPERATING FUND
from the operating fund is shown in the Capital Transfers.

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Revised YTD Encum- Remaining Percent of Previous
Budget Actual brances Balance Budget YTD

REVENUES
Service Charges 47,660,583 30,104,199 - 17,556,384 63.2% 21,767,512 Investment Income - 76,599 - (76,599) 0.0% -
Grants - 21,060 - (21,060) 0.0% -
TOTAL REVENUES 47,660,583 30,201,858 - 17,458,725 63.4% 21,767,512

EXPENSES
Salaries & Benefits 527,742 287,477 - 240,265 54.5% 116,139 Materials, Supplies & Services 37,149,413 17,905,168 2,364,010 16,880,235 54.6% 20,913,216 Special Projects 1,384,649 795,542 7,815 581,292 58.0% 674,678 Debt Service 34,695 - - 34,695 0.0% -
Other 476,606 - - 476,606 0.0% -
TOTAL EXPENSES 39,573,105 18,988,187 2,371,825 18,213,092 54.0% 21,704,033 Revenue Less Expense 8,087,478 11,213,671 (2,371,825) (754,367) 63,478

CITY OF SANTA BARBARA
Interim Statement of Revenues and Expenditures
For Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

SANTA BARBARA CLEAN ENERGY FUND

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Budget Actual brances Balance Budget YTD

REVENUES
Service charges 3,014,426 1,895,896 - 1,118,530 62.9% 1,701,712 Grants 1,606 - - 1,606 0.0% 78,600
Miscellaneous 62,000 43,791 - 18,209 70.6% 5,000
TOTAL REVENUES 3,078,032 1,939,687 - 1,138,345 63.0% 1,785,312

EXPENSES
Salaries & Benefits 916,003 490,202 - 425,801 53.5% 415,536 Materials, Supplies & Services 2,377,652 1,247,955 142,712 986,985 58.5% 971,807 Special Projects 313,022 71,466 109,951 131,604 58.0% 6,245 Debt Service - - - - 0.0% 16,093
Capital Outlay Transfers - - - - 0.0% 290
Equipment 300 1,053 - (753) 351.0% 8,430
TOTAL EXPENSES 3,606,976 1,810,676 252,663 1,543,637 57.2% 1,497,001 Revenue Less Expense (528,944) 129,012 (252,663) (405,292) 288,311 Miscellaneous
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 Eight Month Ended February 29, 2024 ( 67% of Fiscal Year)

ENERGY AND CLIMATE MANAGEMENT FUND

Page 22 ends

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: April 16, 2024
TO: Mayor and Councilmembers
FROM: Accounting Division, Finance Department
SUBJECT: Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023
RECOMMENDATION:

That Council accept the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year (FY) Ended June 30, 2023.

DISCUSSION:

Pursuant to City Charter, Finance Department staff have prepared the City’s annual financial statements for the fiscal year ended June 30, 2023. Each year, financial statements are prepared to report on the financial condition of the City as a whole, as well as individual funds/operations that are included within the City’s operations.

While only certain financial statements and schedules are required by state law and the City Charter, other information and elements are needed to be considered for an award for excellence in financial reporting from the Government Finance Officers Association (GFOA), which recognizes the highest standards of financial reporting. GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Santa Barbara California for its ACFR for the fiscal year ended June 30, 2023. This was the thirty-fifth year that the City has received this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both Generally Accepted Accounting Principles (GAAP) and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year. Staff believe that the current ACFR for the fiscal year ended June 30, 2023, continues to meet the Certificate of Achievement Program’s requirements and are submitting it to GFOA to determine its Agenda Item No. 8
File Code No. 220.03
Council Agenda Report
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023 April 16, 2024

Page 2 ends

eligibility for another certificate. The City remains committed to financial transparency and compliance through the rigor and completeness of information presented to the City Council and the public through the ACFR.

The expanded financial statements and other information included in the report are collectively referred to as an ACFR. In addition to allowing the ACFR to be considered for the GFOA award for financial reporting, the financial statements are expanded to enable the community and other interested parties to obtain a better and more complete understanding of the City’s finances and operations.

The financial statements were audited by the independent public accounting firm of CliftonLarsonAllen LLP (CLA), whose unmodified opinion is included within the financial section of the report. An unmodified opinion indicates that the financial statements present fairly the financial position of the City of Santa Barbara as of June 30, 2023, and the results of operations, in accordance with generally accepted accounting principles.

As part of the audit, CLA also reviewed and performed tests of the City’s internal accounting control procedures to determine if there are any material weaknesses or instances of non-compliance.

The ACFR is divided into three major sections: the introductory section, the financial section, and the statistical section. The introductory section includes a letter of transmittal, a directory of City officials, and an organizational chart. The financial section includes the independent auditors’ report (as noted above), management’s discussion and analysis (MD&A), and the financial statements, including notes. The statistical section includes financial trend information as well as demographic information about the City. The format of the ACFR is designed to serve the needs of the following primary users: the City Council and other governmental oversight bodies, the public, and agencies assessing the City’s creditworthiness. This Council Agenda Report includes the statement of net position, statement of activities, and other information to assist in understanding the ACFR. The MD&A and supplemental schedules and notes provide additional information.

The table below summarizes the assets, liabilities, and resulting net position for governmental and business-type activities for the fiscal year ending June 30, 2023.

Governmental funds include activities that occur in the General Fund primarily, along with certain special revenue funds while business-type funds include the City’s various enterprise funds, such as water and wastewater, among others.

Council Agenda Report
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023 April 16, 2024

Page 3 ends

Statement of Net Position
in (000's)
Governmental
Activities
Business-Type
Activities Total
Assets:

Current & other Assets $ 283,652 $ 255,857 $ 539,509
Capital Assets, Net 535,743 580,887 1,116,630
Total Assets 819,395 836,744 1,656,139
Deferred Outflows of Resources: 121,112 3,450 144,562
Liabilities:

Current & other Liabilities 54,969 41,732 96,701
Noncurrent liabilities 402,905 219,813 622,718
Total Liabilities 457,874 261,545 719,419
Deferred Inflows of Resources: 28,236 31,495 59,731
Net Position:

Net investment in capital assets 530,288 416,480 946,768 Restricted 110,749 8,433 119,182
Unrestricted (186,638) 142,240 (44,398)
Total Net Position $ 454,399 $ 567,153 $1,021,551
“Net position” is defined as the excess of all the City’s assets and deferred outflows, if any, over all its liabilities and deferred inflows, if any, regardless of fund. The City’s net position for funds grouped under governmental and business-type activities remain strong at $454.4 Million and $567.1 Million, respectively. The net position for governmental activities grew by $47.0 Million in FY2023 compared to FY2022, while the net position in business-type activities grew by $20.0 Million.

The table below summarizes the expenses and revenues for the major functions and programs in the Governmental Activities.

STATEMENT OF ACTIVITIES
Revenues Expenses Net Result
Administration $ 11,859 $ 20,966 $ (9,107)
Public Safety 6,962 65,582 (58,620)
Public Works 27,654 51,964 (24,310)
Community Services 11,505 31,117 (19,612)
Community Development 12,498 19,420 (6,921)
Sustainability & Resilience 0 42 (42)
$ 70,479 $ 189,091 $ (118,612)
Many of these functions/programs are funded through General Fund tax revenues, such as sales, property, and transient occupancy taxes. The revenues summarized in this table are revenues directly generated from specific functions and programs within the departments.

Council Agenda Report
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023 April 16, 2024

Page 4 ends

The table below summarizes the expenses and revenues for the major enterprise functions and programs in the business-type activities.

STATEMENT OF ACTIVITIES
Revenues Expenses Net Result
Water $ 68,650 $ 56,917 $ 11,733
Wastewater 27,438 25,530 1,908
Airport 29,555 33,462 (3,907)
Waterfront 18,211 17,258 953
Solid Waste 35,828 34,838 990
Downtown Parking 9,131 11,237 (2,106)
Golf Course 4,178 3,359 820
Clean Energy 43,408 37,598 5,810
$ 236,399 $ 220,197 $ 16,201
The enterprise functions are entirely self-sustaining and generate their own revenue to cover both operating and capital expenditures.

Staff will present the ACFR to the Finance Committee just prior to the Council’s afternoon session. A representative from CLA will be present to provide the Finance Committee with a summary of the audit and the results thereof.

BUDGET/FINANCIAL INFORMATION:

The acceptance of the City’s ACFR has no direct fiscal impact on the City; however, the reports are necessary to allow for City Council oversight of the financial condition of the City. Failing to prepare and accept such reports could jeopardize the City’s credit rating and its ability to obtain grants and debt financing in the future.

The ACFR for the fiscal year ended June 30, 2023, is available for review on the City’s website at https://SantaBarbaraCA.gov/Budget-Reports.

ATTACHMENT: Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023
PREPARED BY: Nathalie Lecolley, Controller
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: City Administrator's Office
City of

SANTA BARBARA

CALIFORNIA
Annual Comprehensive Financial Report
FISCAL YEAR ENDED JUNE 30
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023

ATTACHMENT
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CITY OF SANTA BARBARA, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2023
Prepared Under the Supervision of
Keith DeMartini, Finance Director
This page was intentionally left blank.

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2023

INTRODUCTORY SECTION
TRANSMITTAL LETTER 1

GOVERNMENT FINANCE OFFICERS ASSOCIATION CERTIFICATE OF
ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING 6
DIRECTORY OF CITY OFFICIALS 7
ADVISORY BOARDS AND COMMISSIONS 8
ORGANIZATIONAL CHART 9

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 13
MANAGEMENT’S DISCUSSION AND ANALYSIS 17

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 34
STATEMENT OF ACTIVITIES 35

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 37

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE NET POSITION OF GOVERNMENTAL ACTIVITIES 38

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – GOVERNMENTAL FUNDS 39

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 40

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 41

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND
NET POSITION 43

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2023
STATEMENT OF CASH FLOWS 45

FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 49
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 50
NOTES TO BASIC FINANCIAL STATEMENTS 52

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS – SAFETY RETIREMENT AND SAFETY SERVICE
RETIREMENT PLANS 117
SCHEDULE OF CONTRIBUTIONS – SAFETY RETIREMENT AND SAFETY SERVICE RETIREMENT PLAN 119
SCHEDULE OF INVESTMENT RETURNS – SAFETY RETIREMENT AND
SAFETY SERVICE RETIREMENT PLANS 121

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS – CALPERS MISCELLANEOUS PENSION PLANS 122 SCHEDULE OF CONTRIBUTIONS – CALPERS MISCELLANEOUS
PENSION PLANS 124

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS – CALPERS SAFETY POLICE PENSION PLANS 126 SCHEDULE OF CONTRIBUTIONS – CALPERS SAFETY POLICE PENSION PLANS 128
SCHEDULE OF CITY’S PROPORTIONATE SHARE OF THE PLAN’S NET PENSION LIABILITY AND RELATED RATIOS – CALPERS SAFETY FIRE – COST SHARING PENSION PLAN 130
SCHEDULE OF CONTRIBUTIONS – CALPERS SAFETY FIRE – COST
SHARING PENSION PLAN 132

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS 134

BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 135
AFFORDABLE HOUSING SPECIAL REVENUE FUND 136

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2023
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – MODIFIED
APPROACH 137

NONMAJOR GOVERNMENTAL FUNDS
DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS 146

OTHER SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET 148

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 152

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
TRAFFIC SAFETY SPECIAL REVENUE FUND 156
CREEK RESTORATION/WATER QUALITY SPECIAL REVENUE FUND 157 WILDLAND FIRE SUPPRESSION SPECIAL REVENUE FUND 158
TRANSPORTATION DEVELOPMENT SPECIAL REVENUE FUND 159

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE
FUND 160
POLICE – ASSET FORFEITURE SPECIAL REVENUE FUND 161
COUNTY LIBRARY SPECIAL REVENUE FUND 162
MEASURE A SPECIAL REVENUE FUND 163
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 164
STREET SWEEPING SPECIAL REVENUE FUND 165
HOME PROGRAM SPECIAL REVENUE FUND 166
POLICE – SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE
FUND 167
STREETS SPECIAL REVENUE FUND 168
POLICE CAD-RMS SUPPORT SPECIAL REVENUE FUND 169

NONMAJOR PROPRIETARY FUNDS
DESCRIPTION OF NONMAJOR PROPRIETARY FUNDS 172

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2023

NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF NET POSITION 173

COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION 174
COMBINING STATEMENT OF CASH FLOWS 175

INTERNAL SERVICE FUNDS
DESCRIPTION OF INTERNAL SERVICE FUNDS 180

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION 181

COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION 182
COMBINING STATEMENT OF CASH FLOWS 183

FIDUCIARY FUNDS
DESCRIPTION OF FIDUCIARY FUNDS 188

FIDUCIARY FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION 189

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET
POSITION 190

STATISTICAL SECTION (UNAUDITED)
STATISTICAL TABLE OF CONTENTS 194
NET POSITION BY COMPONENT – LAST TEN FISCAL YEARS 196
CHANGES IN NET POSITION BY COMPONENT – LAST TEN FISCAL
YEARS 197
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE – LAST TEN FISCAL YEARS 199
FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN FISCAL
YEARS 200
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS – LAST
TEN YEARS 201

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2023

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY – LAST TEN FISCAL YEARS 203
DIRECT AND OVERLAPPING PROPERTY TAX RATES – LAST TEN
FISCAL YEARS 204
PRINCIPAL PROPERTY TAXPAYERS – CURRENT YEAR AND TEN
YEARS AGO 205
PROPERTY TAX LEVIES AND COLLECTIONS – :LAST TEN FISCAL
YEARS 206
RATIOS OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS 207 RATIOS OF GENERAL BONDED DEBT OUTSTANDING – LAST TEN
FISCAL YEARS 208
LEGAL DEBT MARGIN INFORMATION 209
PLEDGED-REVENUE COVERAGE – LAST TEN FISCAL YEARS 210
DEMOGRAPHIC ECONOMIC STATISTICS – LAST TEN FISCAL YEARS 213 PRINCIPAL EMPLOYERS – CURRENT YEAR AND NINE YEARS AGO 214 CITY GOVERNMENT EMPLOYEES BY FUNCTION – LAST TEN FISCAL YEARS 215
OPERATING INDICATORS BY FUNCTION – LAST TEN FISCAL YEARS 216 CAPITAL ASSET STATISTICS BY FUNCTION – LAST TEN FISCAL YEARS 217 This page was intentionally left blank.

INTRODUCTORY SECTION
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March 26, 2024
Honorable Mayor, Members of the City Council, and Residents of the City of Santa Barbara
It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Santa Barbara for the fiscal year ended June 30, 2023, in accordance with Section 1219 of the City Charter. The report was prepared by the City’s Finance Department and responsibility for the accuracy of the data, the completeness and fairness of the presentation, and all disclosures, rests with the City. To the best of our knowledge and belief, the information in the ACFR is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the City.

This report consists of management’s representations concerning the City finances. To provide a reasonable basis for making these representations, management established a comprehensive internal control framework designed both to protect the City’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP).

The City Charter requires an annual audit of the City’s financial statements by an independent certified public accountant. CliftonLarsonAllen LLP, the City’s audit firm, has issued an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2023. The independent auditors’ report is located on pages 9-11 within the financial section of this report. The ACFR has been prepared using the financial reporting requirements as prescribed by Government Accounting Standards Board (GASB) Statement No. 34. GASB 34 requires that management provide a narrative introduction, overview, and analysis to accompany the financial statements in the form of a Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found beginning on page 13.

PROFILE OF THE CITY OF SANTA BARBARA
The City of Santa Barbara is located between the Santa Ynez Mountains and the Pacific Ocean. Santa Barbara offers year-round sunshine, miles of beaches, a colorful history dating back to the Chumash Indian tribes, a rich Spanish heritage, gourmet dining, and spectacular parks. It is often referred to as the American Riviera. The City was incorporated in August of 1850 and as of 2023 serves a local population of 85,418. The City is a major employment center and tourist destination. (1)
The City provides a wide range of services to its citizens. These services include police and fire protection; construction and maintenance of highways, streets, traffic signals and infrastructure; community development; recreational activities and cultural events; parks; parking facilities; water; wastewater; library; airport; harbor; and a golf course, among many other services.

LOCAL ECONOMY
As far back as the late 1800’s, the City of Santa Barbara was a place people from across the country came to enjoy its natural beauty, including its wonderful beaches, great yearround weather, and many recreational and cultural offerings. This is still true today, such that tourism is the largest industry in the City. The national, state, and local economies have been enjoying one of the longest, most robust periods of stability and growth in many years. Leisure/hospitality provide a substantial portion of General Fund revenues to the City of Santa Barbara through transient occupancy and sales taxes, among other tax and revenue sources. As one of the City Council’s strong commitments to fiscal sustainability, the City has prioritized the gradual replenishment and building of General Fund reserves over the past 14 years following the Great Recession. Through the use of these reserves, along with achieving expenditure savings, among other budget balancing strategies, the City has and will continue to operate within its means to continue to deliver services to Santa Barbara residents and visitors.

Post COVID, the local economy showed a strong growth in transient occupancy and sales tax revenues. The real-estate market was relatively strong. Consequently, property tax revenues increased at a steady rate. Entering Fiscal Year (FY) 2023, the City experienced a plateau in economic activities due to various factors such as supply chain disruptions, inflationary pressures, and labor shortages. Winter 2023 brought additional storms that strained financial resources and reduced economic activities which reduced city reserves. Despite these challenges, by continuing to control costs and implementing strong financial controls, the General Fund reserves for FY2023 met the contingency and disaster reserve targets set by the City Council. The use of reserves has been a tool that the City has utilized in prior years immediately following local natural disasters, such as the Thomas Fire and COVID. Continuing to prioritize the replenishment of these reserves allows the City to persevere through operational and financial hardship in the future.

The local economy is likely to continue to face many challenges in the coming year given continued economic and operating uncertainty. The City will continue to respond and support local businesses with their operational challenges.

LONG-TERM FINANCIAL PLANNING
Long-term financial planning is an integral part of the City’s fiscal management as it ensures sustainable growth, resilience, and effective governance. It is even more critical now given the current and projected economic uncertainty. Each of the City’s operating funds, including the General Fund and its enterprise funds, maintains a long-term (2)
financial model. For enterprise funds, which are largely funded from rates and charges for direct services provided, the financial models go out as far as ten years. These operations are relatively stable financially and, as such, lend themselves to a longerterm view, which in turn helps inform real time decisions of how to manage rates and charges to ensure operating costs are covered; and equally important is ensuring funds will be available for their capital needs.

A long-term financial model is also maintained for the General Fund. The model looks forward five years, rather than ten, because of the volatile nature of tax revenues in a tourist-based economy makes it very difficult to predict revenues with any certainty beyond five years. Nonetheless, the financial model is invaluable in the development of the biannual financial plan and annual operating budget. The financial model has recently been enhanced to incorporate recession and more aggressive economic scenarios to understand the potential additional impact on General Fund reserves.

These models will continue to be refined over the coming months leading into the upcoming FY2025 and FY2026 operating budgets to articulate fiscally pragmatic assumptions for revenues.

As an additional planning tool, the City adopts a two-year financial plan, with the first year representing the adopted annual budget and the second year serving as a financial plan and a starting point for the following year. Two-year financial plans take more time to produce in the first year, but it forces the organization and staff to take a longer-term view of its operations at a more detailed level than a financial model that they might not otherwise do. Even though the City’s Charter requires an annual budget, the City has embraced the concept and additional discipline required to incorporate a second year into its budget/planning document.

Annual pension expenses are projected to continue to rise and represent a significant amount of the City’s operating budget. The pension funded status is 67.0% or 5.0% below the Public Employees’ Retirement Fund (PERF). During FY2022, the City Council took decisive action, Resolution 22-125, to address future pension-related costs and liabilities; 12.5% of the FY2022 year-end savings in the General Fund was set aside to establish a Section 115 Trust to address the growing and volatile pension liabilities. In addition, under Resolution 23-153, the City Council adopted the resolution to appropriate the transfer of available reserves from enterprise, internal service funds into the Pension Section 115 Trust. This last one was successfully established and $2.2 Million was deposited into the trust. The return projection is set to be at about 5.5%.

The City is self-insured and funds its own workers’ compensation claims as well as coverage for liability and property. The Self-Insurance Fund (SIF) purchases several types of insurance to cap exposure to large or catastrophic loss. Property insurance has become increasingly expensive to purchase due to continued drought and wildfire conditions throughout California, and liability insurance has also become more expensive due to high claim costs associated with losses, such as law enforcement claims. The City Council has supported staff’s recommendations to increase funding into the SIF in FY2023 and in years to come to ensure that the SIF has adequate funding and reserves to achieve adequate coverage for city facilities and operations. (3)

FINANCIAL CONTROLS
The City's management is responsible for establishing and maintaining a system of internal controls designed to ensure that the City's assets are protected from loss, theft, or misuse. The City’s system of internal controls must also ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The City's system of internal controls is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. We believe that the City's system of internal controls adequately safeguards assets and provides reasonable assurance as to the proper recording of financial transactions. The City's internal controls are subject to periodic evaluation by the City's management.

Single Audit
As a recipient of federal assistance, the City is responsible for maintaining a system of internal controls that will ensure compliance with applicable laws and regulations related to those federal programs. As part of the City’s federal single audit, tests are made to determine the adequacy of the internal controls, including that portion relating to federal financial assistance. The single audit also seeks to determine whether the City has complied with, in all material respects, all applicable laws and regulations that could have a direct or material effect on a major grant program. The single audit did not encounter any instances of material weaknesses in the City’s internal controls over financial reporting.

Budgetary Controls
The City maintains budgetary controls designed to ensure compliance with the legal provisions contained in the annual budget approved by the City Council. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is at the department level for the General Fund and at the fund level for all other legally adopted budgets.

The City maintains a formal, integrated, encumbrance accounting system as one means of ensuring budgetary control. Purchase orders that would result in an overrun of department appropriations at a major object category level are not released until additional funds have been appropriated. Appropriations for encumbrances outstanding at year-end are carried over and re-appropriated in the following fiscal year.

OTHER INFORMATION
Spending Limitation
Article XIIIB of the California Constitution, also known as the Gann spending limit, restricts the amount of “proceeds of taxes” California governments may spend. As of June 30, 2023, the City had not reached its Article XIIIB spending limitation. (4)

AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Santa Barbara California for its ACFR for the fiscal year ended June 30, 2022. This was the thirty-fifth year that the City has received this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both Generally Accepted Accounting Principles (GAAP) and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. Staff believe that the current ACFR for the fiscal year ended June 30, 2023, continues to meet the Certificate of Achievement Program’s requirements and are submitting it to GFOA to determine its eligibility for another certificate.

The preparation of this ACFR could not have been accomplished without the hard work and team effort of the Finance Department, in particular Nathalie Lecolley, Controller, Jessica Yates and Lynne Sparks Accounting Supervisors, Jo Salamack and Takero Shinoda, Senior Accountants, and Sarolyn Boyd, Accountant II all of whom put in tremendous hours in the preparation of this report. Staff appreciate the City Council’s direction and policy oversight on the various fiscal and budget issues addressed during the year. In addition, Department Directors and staff at all levels should be acknowledged for their continued attention to planning and conducting the City financial and procurement operations in a responsible and progressive manner.

Respectfully submitted,
_________________________ _____________________________ Sarah Knecht Keith DeMartini
Interim City Administrator/ Finance Director
Clerk/Treasurer
(5)
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Santa Barbara
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Christopher P. Morrill
Executive Director/CEO
(6)
(7)

CITY OF SANTA BARBARA
Directory of City Officials
City Council
Management Team as of June 30, 2023
Justin Cure, Information Technology
Director Jessica Cadiente, Library Director
Jill Zachary, Parks & Recreation Director
Kelly Gordon, Police Chief
Clifford Maurer, Public Works Director
Alelia Parenteau, Sustainability & Resilience
Director
Mike Wiltshire, Waterfront Director
Rebecca Bjork, City Administrator/Clerk/
Treasurer Sarah Knecht, City Attorney
Rene Eyerly, Assistant City Administrator
Christopher Hastert, Airport Director
Elias Isaacson, Community Development Director
Keith DeMartini, Finance Director
Chris Mailes, Fire Chief
Wendy Levy, Human Resources Director
Randy Rowse
Mayor
Alejandra Gutierrez
Mayor Pro Tempore
Meagan Harmon
Councilmember
Oscar Gutierrez
Councilmember
Eric Friedman
Councilmember
Mike Jordan
Councilmember
Kristen Sneddon
Councilmember
(8)

CITY OF SANTA BARBARA
Advisory Boards and Commissions
Charter Boards and Commissions Membership
Airport Commission ................................................................................................. 7 Architectural Board of Review ................................................................................. 7 Civil Service Commission ........................................................................................ 5 Fire and Police Commission .................................................................................... 5 Harbor Commission ................................................................................................. 7 Historic Landmarks Commission ............................................................................. 9 Library Board ........................................................................................................... 5 Parks and Recreation Commission ......................................................................... 7 Planning Commission .............................................................................................. 7 Water Commission .................................................................................................. 5 Committees and Commissions
Access Advisory Committee .................................................................................... 7 Arts Advisory Committee ......................................................................................... 7 Building and Fire Code Board of Appeals ................................................................ 7 Central Coast Commission for Senior Citizens ........................................................ 1 Citizens’ Oversight Committee ................................................................................ 7 Community Development and Human Services Committee .................................. 13 Community Events and Festivals Committee .......................................................... 7 County of Santa Barbara Library Advisory Committee ............................................ 1 Creeks Advisory Committee .................................................................................... 7 Downtown Parking Committee ................................................................................ 7 Housing Authority Commission ................................................................................ 7 Living Wage Advisory Committee ............................................................................ 7 Measure P Committee ............................................................................................. 7 Metropolitan Transit District Board .......................................................................... 2 Mosquito and Vector Management District Board ................................................... 1 Neighborhood Advisory Council ............................................................................ 13 Rental Housing Mediation Board ........................................................................... 15 Santa Barbara Youth Council ................................................................................ 15 Sign Committee ....................................................................................................... 3 Single Family Design Board .................................................................................... 7 Sister Cities Board ................................................................................................... 3 Transportation and Circulation Committee .............................................................. 7 Other Advisory Bodies
Arts and Crafts Show Advisory Committee.............................................................. 8 Golf Advisory Committee ......................................................................................... 7 Integrated Pest Management Advisory Committee ................................................. 5 Staff Hearing Officer ................................................................................................ 1 Oversight Board ....................................................................................................... 1 Street Tree Advisory Committee.............................................................................. 5

CITY OF SANTA BARBARA

ORGANIZATIONAL CHART

ELECTORATE

MAYOR AND COUNCIL

CITY ADMINISTRATOR /

CITY CLERK / TREASURER
R. Bjork

BOARDS,

COMMISSIONS,
& COMMITTEES

CITY ATTORNEY
S. Knecht

ASSISTANT CITY

ADMINISTRATOR
R. Eyerly

AIRPORT
C. Hastert
Director
FIRE
C. Mailes
Director
HUMAN

RESOURCES
W. Levy
Director

INFORMATION

TECHNOLOGY
J. Cure
Director

LIBRARY
J. Cadiente
Director

PARKS &

RECREATION
J. Zachary
Director
PUBLIC
WORKS
C. Maurer
Director

WATERFRONT
M. Wiltshire
Director

SUSTAINABILITY
& RESILIENCE
A. Parenteau
Director
As of June 30, 2023

COMMUNITY

DEVELOPMENT
E. Isaacson
Director
POLICE
K. Gordon
Director

FINANCE
K. DeMartini
Director
(9)
(10)
(11)

FINANCIAL SECTION
(12)
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CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(13)
INDEPENDENT AUDITORS’ REPORT
The Honorable City Council
of the City of Santa Barbara
Santa Barbara, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Santa Barbara, (the City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Santa Barbara, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Change in Accounting Principle
As described in Note 1 to the financial statements, effective July 1, 2022, the City adopted new accounting guidance, Government Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. Our opinions are not modified with respect to this matter.

Restatement for Correction of Errors
As discussed in Note 19 to the financial statements, the City made restatements to beginning fund balance/net position to correct prior period misstatements. Our opinions are not modified with respect to this matter.

The Honorable City Council
of the City of Santa Barbara
(14)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

The Honorable City Council
of the City of Santa Barbara
(15)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedules – General and Major Special Revenue Funds, modified approach for City streets infrastructure capital assets, the schedules of changes in net pension liability and related ratios, the schedules of plan contributions, the schedule of investment returns – safety retirement and safety service retirement plans, and the schedules of changes in the total other postemployment benefit (OPEB) liability and related ratios be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining financial statements and individual fund budgetary schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining financial statements and individual fund budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

The Honorable City Council
of the City of Santa Barbara
(16)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 26, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
March 26, 2024
(17)
MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited)
Fiscal Year Ended June 30, 2023
This section of the City’s Annual Comprehensive Financial Report presents an overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have included in our letter of transmittal, which can be found on pages 1-4 of this report.

FINANCIAL HIGHLIGHTS
At the end of Fiscal Year (FY) 2023, the City’s net position (assets and deferred outflows minus liabilities and deferred inflows) totaled $1.0 Billion, an increase of approximately $66.1 Million from the prior year.

Unrestricted funds may be used by the City to meet ongoing operations, subject to applicable federal and state laws and regulations. Of the total net position, unrestricted funds had a deficit balance of $45.0 Million, a reduction in loss by $28.0 Million with FY2022 mainly due to a change of assumptions under GASB 68; Reduction in discount rate to determine the long term expected rate of return. Net position increased by $46.0 Million under Governmental activities when Business type activities added $20.4 Million.

As of June 30, 2023, the City’s governmental funds reported a combined ending fund balances of $188.0 Million, an increase of $7.5 Million from the prior year.

OVERVIEW OF FINANCIAL STATEMENTS
The City’s basic financial statements are comprised of three components: (1) Government-wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Basic Financial Statements. Each of these components is discussed below.

Government-wide Financial Statements
The Government-wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all the City’s assets, liabilities, and deferred outflows and inflows of resources. Net position (deficit) is the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information summarizing how the City’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

Fund Financial Statements
The City, like other state and local governments, uses Fund Accounting for recording its financial activities. In general, Fund Accounting provides a mechanism to separately account for a variety of different funding sources and thereby enables the City to demonstrate compliance with legal or contractual requirements that may be associated with these funds. Accordingly, the accompanying fund financial statements present individual funds, organized into one of three groups based on the nature of (18)
the activities and their purposes: Governmental, Proprietary, or Fiduciary Funds. Note that the Fund financial statements only present information on the most significant (i.e., “major”) funds on the face of the statement. Non-major funds are grouped and presented in total on the face of the statements. In addition, the Fund financial statements include a schedule that reconciles the Fund financial statements to the government-wide financial statements previously described. This is designed to explain the differences created by the integrated approach.

Governmental Funds – Most of the City’s basic services are reported in governmental funds.

Governmental funds include the General Fund, Special Revenue, Capital Projects, and Debt Service funds. In the fund financial statements, all governmental fund types are reported using the modified accrual basis of accounting. This is a departure from the basis of accounting used in the private sector and is used in the public sector in recognition of the different purpose and focus of financial reporting.

Because the focus is only on inflow (revenue) and outflow (expenditures) of current financial resources, the balance sheets of governmental funds present only short-term assets and liabilities.

The fund financial statements include separate columns, by fund type, for all major governmental funds of the City. All non-major governmental funds are consolidated into a single column labeled “Other Governmental Funds.” The details of these funds are included in the Combining and Individual Fund Statements and Schedules located in the Financial Section of this report.

Proprietary Funds – Proprietary funds are utilized to account for services provided to external customers or other City departments and funds that are primarily funded from user fees and charges. The basis of accounting and measurement focus used to prepare proprietary fund statements is the same that is used to prepare the government-wide statements. Thus, the proprietary fund statements provide the same, but more detailed, information about these funds, which are included in the “Business-Type Activity” column of the government-wide statements. Proprietary funds include enterprise funds and internal service funds. The City uses enterprise funds to account for its water, wastewater, solid waste, airport, waterfront/harbor operations, downtown parking, golf, and clean energy. Internal service funds are used to account for intra-city services such as fleet maintenance and replacement, building maintenance, postemployment benefits, communications, information systems, self-insurance programs, and energy management.

Fiduciary Funds – Fiduciary funds are used to account for resources held by the City as trustee on behalf of other agencies or individuals. Fiduciary funds are not presented in the government-wide statements, as their resources are not available to support the operations of the City.

Notes to the Basic Financial Statements
The notes to the financial statements provide information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements.

Other Information
In addition to the basic financial statements and related notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits and other post-employment benefits to its employees; budgetary comparison schedules for the General Fund and each major special revenue fund; and schedules and disclosures of the modified approach for reporting the City’s infrastructure.
(19)

GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City has presented its financial statements under the reporting model required by Governmental Accounting Standards Board Statement No. 34 (GASB 34). The following analysis of the GovernmentWide statements includes a comparison between current and prior year results of operations and yearend balances.

Statement of Net Position
Table 1 below summarizes the Statement of Net Position for Governmental and Business Type Activities as of June 30, 2023, with comparative totals as of June 30, 2022. As previously stated, net position at year end serves as a useful indicator over time of whether the City’s financial position is improving or deteriorating.

As shown in Table 1, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.0 Billion as of June 30, 2023, an increase of $66.0 Million over FY2022. The largest portion consists of the City’s net investment in capital assets in the amount of $946.8 Million. The city uses these capital assets to provide services to citizens, and therefore they are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves are not generally used to liquidate these liabilities. A portion of the City’s net position, $119.2 Million, is subject to restrictions imposed by external parties, and its use is determined by those restrictions and contractual agreements.

The City’s deferred outflows of resources increased by $75.5 Million or approximately 109.0% with FY2022 when deferred inflows of resources decreased by $104.6 Million or 64.0%. Both variances were primarily due to the net changes in pension. For more information on the components of Deferred outflows and inflows of resources related to pensions, see Note 9. (20)
Total net position resulting from governmental activities increased by $45.8 Million or approximately

11.2% with FY2022. This was comprised of an increase in the net investment in capital assets of $12.2 Million or approximately 2.4%, an increase in restricted net position or $5.2 Million and a positive reduction in unrestricted net position for $29.6 Million.

Total net position resulting from Business-type activities increased by $20.4 Million or approximately 3.7% with FY2022. This was comprised of an increase in the net investment in capital assets of $18.2 Million or approximately 4.5%, an increase in restricted net position or $2.7 Million and an decrease in unrestricted net position for $1.0 Million.

Statement of Activities
For the fiscal year ended June 30, 2023, total net position increased by $66.1 Million, or 6.9%.

Adjustments to the prior fiscal year related to Account Receivables and FEMA reimbursement fund allocation added $1.2 Million to net position for current year.

Table 2 summarizes the Statement of Activities for Governmental Activities and Business-Type Activities for the fiscal year ended June 30, 2023, with comparative totals for the fiscal year ended June 30, 2022. (21)
Governmental Activities
Revenue Highlights
Governmental activities revenue increased by $769K during FY2023. Variances from FY2022 exceeding

10.0% or $2.5 Million are discussed below.
• 10.5% decrease in operational grant receipts for Community Development and Public Safety by $3.5 and $2.0 Million respectively offset by an increase of $2.8 Million for Community Services. • 17% decrease or $3.9 Million less in capital grant for Public Works. • Increase by 245.0% or $4.0 Million in investment income due to favorable market.

Other Revenues / Taxes:
• Sales and Use taxes reported an increase of $462k from the prior year, or 0.8% increase. This positive trend is due to a combination of increased consumer spending and higher than expected inflation prices. For FY2023, $59.7 Million was generated. • Property taxes reported an increase of $3.7 Million from the prior year, or a 9.0% increase to $46.0 Million. To note, Proposition 13 impacts the amount of property tax collected as it limits how much taxable value can be allocated to a property each year. It is currently set at 2.0%. That said, Santa Barbara continues to be a very desirable location to live, and property prices and number of sales have remained strong even during recent economic uncertainty. • Transient Occupancy taxes (TOT).

After a significant peak in hotel occupancy after the pandemic, we now notice a slower movement with tourism activities. For FY2023, revenue was $31.5 Million, a slight decrease by 1.6% from the prior year.
(22)
Expense Highlights
Governmental functional expenses for the year totaled approximately $189.0 Million ($187.5 Million in FY2022), an increase of $1.5 Million from the prior year. The variance is composed of the following changes:
• Public Safety expenditures reduced by $24.5 Million in relation to FY2022. This change relates mainly to a decrease in pension liability of $19.5 Million (note 9) as well as a combination of vacant positions.
• Public Works expenditure increased by $14.4 Million. Most of this variance is attributed to capital outlays. In contrast to Public Safety costs that are funded by general revenues such as taxes, Public Works expenses are mostly funded by restricted revenues such as gas and utilities taxes as well as Federal and State grants. These resources pay for street maintenance and improvements, transportation planning and other related costs. • Community services and development increased by $6.0 Million and $4.0 Million respectively with the prior fiscal year. The main variances are primarily due to variance in pension liability with prior year and a combination of increase in payroll capital outlay expenses. • Administration, Sustainability and Resilience departments make up for the offset of the variances listed above by roughly $1.4 Million with increase in labor expenses across Finance, Human Resources, Attorney, and Administration staff.
(23)
Business-Type Activities
The City’s business-type activities net position increased by $20.4 Million in FY2023 to $567.2 Million ($547.2 Million as of June 30, 2022.)
The chart below illustrates Expenses and Program Revenues for each business-type activity.

Revenue Highlights
Program revenues of $236.4 Million were generated in FY2023, an increase of $20.8 Million compared to prior year of $215.5 Million (10.0% increase). The dominant change in revenue is attributed to Clean energy with an increase of 195.0%. In contrast, Operating grants and contributions decreased by $16.0 Million. Main variables in revenues are as followed:
• The Clean Energy division is one of the newest divisions within the City receiving revenue since FY2022. Fees are closely tied to changes in SCE’s rates that increased significantly during FY2023. The result is a strong positive outcome that surpasses its expenditure. For this year, $43.4 Million was generated against $14.7 Million for FY2022. • Downtown Parking generated an additional 50.0% in revenue in comparison to the prior fiscal year or $9.1 Million. The primary reason is related to the increase in fees but the forecast for the upcoming fiscal year is closely monitored due to a decrease in parking occupancy that may be in response to higher charges to park.
• The Airport continues to see a strong level of commercial airline passenger activity. Revenues exceeded expectations for parking, ground transportation, rental cars, and concessions. FY2023 ended at $28.6 Million, an increase of $2.76 Million. However, revenues under operating Grants and contributions were less than last year which in return counterbalanced the results for FY2023:

A federal grant – Covid 19 for $5.9 Million received in FY2022 in comparison to a balance of $800K for FY2023.
(24)
• The Water Fund saw a reduction in its revenue attributed to rainstorms, a decrease in consumption. The dominant change for this department related to a grant for $11.9 Million in 2022 to support the Desalination project against a balance for $1.3 Million in FY2023.

Expense Highlights
Expenses of Business-Type Activities for the fiscal year ended June 30, 2023, came to an average increase of 26.5%. The change is mainly attributed to costs of revenues generated and payroll expenses.

For fiscal year end, total expenditure was $220.2 Million ($174.0 Million as of June 30, 2022), a $46.2 Million increase from prior year dominated by $21.5 Million from Clean Energy for which operations were not fully in place until the second part of FY2022.
• The Water Fund expended $56.9 Million, $6.0 Million more than FY2022. FY2020 experienced reduced operating costs within the desalination and recycled water plants from significant rainfall in prior years. More normal operational expenditures occurred during FY2023. • The Wastewater Fund expense increased by $3.2 Million with FY2022 or $25.5 Million. A partial of this variance related to revenue generated when other costs relate directly to inflation. • The Airport Fund expenses were $5.9 Million higher than FY2022 or $33.5 Million. When few of these costs related directly to the increase in revenues, the main drivers were related to transfer in for capital expenditure, inflation such as insurance, supplies, and benefits. • The Waterfront Fund experienced a peak in expenditure by 19.95% or $2.8Million. A major portion related to disaster costs posted under the FEMA fund and reclassed to Waterfront in FY2023. • The Downtown Parking Fund expense is $11.2 Million or 22.5% higher than FY2022. This department faces few challenges between higher capital expenditures largely due to Lot 9 Roof deck repair, higher facilities maintenance costs, and increases in payroll and benefits expenses. • The Clean Energy Fund began in FY2022 and ramped up to normal, annual operations in FY2023 and reported expenses of $37.6 Million.

Other business-type activities had increases in salary and benefit savings that helped offset this variance. (25)

FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
The City uses fund accounting to demonstrate compliance with legal and contractual requirements. This section provides an analysis and discussion of individual funds and fund types presented in the financial statements.

Governmental Funds
As of June 30, 2023, assets in the City’s governmental funds totaled $253.9 Million ($240.3 Million as of June 30, 2022). Of this total, $115.3 Million ($110.7 Million in prior year) consisted of cash and investments, an increase of $4.6 Million over prior year. An additional $78.0 Million represents outstanding loans receivable, for which 84.0% relates to the City’s Affordable Housing Fund and Community Development Block Grant and HOME Programs. The General Fund has $15.0 Million, an increase by 4.7 Million in advances (loans) to other City funds which include the Clean Energy Fund, Golf Fund, and the Energy Management Fund.

Fund balances of governmental funds totaled $187.7 Million on June 30, 2023 ($179.0 Million in the prior year restated in current year to $108.2 Million), an increase of $7.5 Million. An amount corresponding to prepaid assets, outstanding loans, and advances receivable of $3.4 Million is reported as “nonspendable” due to the long-term nature of the assets and, therefore, unavailable to fund current operations. A further $100.0 Million ($98.4 Million in the prior year) is restricted for specific programs, projects, and capital improvements with $67.8 Million of this restricted for affordable housing and contributing to the increase in the year. The spendable portion of fund balance totals $84.3 Million, which includes committed and unassigned balances, an increase with prior year by 14.7%.

The General Fund’s fund balance increased by $4.2 Million to $55.7 Million. The most significant committed portion of fund balance is $42.0 Million ($39.1 Million in FY2022) consisting of funds set aside, pursuant to City policy, for natural disasters and unexpected events such as significant economic downturns that have a significant impact on the General Fund. The policy requires all operating funds, including the General Fund, to set aside an amount equal to 25.0% of its operating budget. The unassigned fund balance in the General Fund is $7.7 Million, an increase of $4.8 Million from FY2022.

Proprietary Funds
Unlike governmental funds, proprietary funds use the accrual basis of accounting for financial statement purposes. The City’s proprietary fund statements provide the same type of information found in businesstype activities in the government-wide financial statement but in more detail.

The net position of proprietary funds consists of amounts for net investment in capital assets, amounts restricted for capital projects and debt service, as well as unrestricted amounts. Net position totaled $567.1 Million as of June 30, 2023 ($547.1 Million as of June 30, 2022), which increased $20.0 Million,

4.0% from the prior year. The main takeaway for this positive variance related to CalPERS actuary reevaluation of long-term liability reserve for the City pension plan. (26)

GENERAL FUND FINANCIAL AND BUDGETARY HIGHLIGHTS
The General Fund budgetary highlights include only those funds associated with General Fund operations as reported in the City’s budget. The General fund is the main operating fund of the City. Its revenues are primarily derived from taxes, charges for services and intra-governmental charges, which are used to pay for the traditional services provided by local government – public safety, library, parks and recreation, community development (building and planning), and public works.

Revenues
The amended FY2023 General Fund revenue budget of $184.6 Million reflects adjustments of $501K that were approved by the City Council during the year. The most significant amendment included a decrease to interdepartmental revenues by Fire Operations Fund for responses to Mutual Aid incidents.

As shown on Table 3, actual revenues totaled $194.8 Million. Tax revenues ended the year higher than the amended budget by $9.6 Million, reflecting mainly the growth in the number of home sales and assessed values in proprieties as well as the increase in Transient Occupancy Tax, due primarily to increase in average daily rates which are 30.0% to 40.0% higher than pre-pandemic rates. (27)
Expenditures
The amended FY2023 General Fund expenditure budget reflects amendments approved by the City Council during the year. The amended budget also reflects appropriations carried over from the prior year related to outstanding encumbrances as of June 30, 2022.

As shown on Table 4 above, actual expenditures totaled $190.7 Million, and were under final budget by approximately $10.7 Million. The largest savings against budget are the result of salary and benefit savings due to vacancies in budgeted positions during the year. Main division was Public Safety with 28 sworn positions and 20 professional service positions vacant due to retirements, long term disabilities and turnovers.
(28)

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
Table 5 summarizes the City’s capital assets by class and by type of activity. It is important to note that capital assets are reported at historical cost, net of accumulated depreciation. These amounts do not represent the market value or replacement cost of City assets, which would be significantly higher.

Historical cost is used, pursuant to accounting standards, to provide an objective basis for reporting capital assets.

The City owns approximately $1.1 Million of capital assets net of depreciation and accounts receivable, an increase of $17.8 Million compared to the year ended June 30, 2022. These capital assets require ongoing maintenance, improvement, and renovation. As a result, the City as a whole undertakes millions of dollars in capital improvement and construction projects each year.

The capital improvement projects undertaken in the Governmental Activities category typically include improvements to the City’s infrastructure (roads, curbs, storm drains, bridges, sidewalks, gutters, etc.) and improvements to City public facilities, such as parks, restrooms, community facilities, and playgrounds. Starting in 2004, governmental funds have been required to capitalize and report the costs of acquiring or constructing infrastructure assets acquired or constructed after 1982. Where information was readily available, or if a value could be reasonably estimated, the City capitalized infrastructure assets acquired or constructed prior to 1982.
(29)
With regard to capital improvements to City streets, which is also considered “infrastructure,” the City has elected to use the “modified approach” pursuant to Governmental Accounting Standards Board (GASB) Statement No. 34 in accounting for streets. As such, these assets have been reported separately from other infrastructures in Table 5. The City has established a pavement condition assessment process whereby approximately one-third of the entire street system is assessed on a rotating basis every two years. Each road segment is rated and given a pavement condition index (PCI) value from zero to one hundred (0-100), where PCI scores of 51-70 are considered to be in “At Risk” condition, and roads with PCI scores of 71-100 are considered to be in “Excellent/Good” condition. The City has a minimum target PCI of 60, whereby the modified approach may be applied, with an aspiration to improve the PCI to 70 in the coming years whereby ongoing maintenance needs are considered to be most cost effective.

Pursuant to the modified approach, depreciation is not reported for this subsystem and all costs, except for betterments and major improvements made to the subsystem, are expensed rather than capitalized.

The most recent biennial report was for the period ended June 30, 2023, and the average PCI for City streets exceeded the minimum policy level of 60 with a reported average score of 66, defined as “At Risk.”
Governmental Activities which include Internal Service Funds have construction in progress projects totaling $38.1 Million which have commenced or continued in FY2023. Main projects are: De La Vina Bridge project ($5.6 Million); Library Plaza renovation ($4.3 Million); other streets, bike lane, pedestrian and sidewalk related improvements ($4.1 Million); Cabrillo bridge replacement ($3.9 Million); new police station ($3.8 Million); W. Carrillo light and signal upgrade ($3.3 Million).

For Business-Type Activities, construction in progress projects totaling $40.0 Million which have commenced or continued in FY2023 primarily relate to facilities used in connection with enterprise funds, including water, wastewater, airport, waterfront, golf, and downtown parking. These operations can be much more capital intensive given the nature of the services they provide. The main changes relate to Construction in Progress: Desal Conveyance Pipeline ($25.2 Million); general airport improvements ($2.6 Million); wastewater improvements ($5.7 Million); and waterfront improvements ($1.6 Million). Additional information on the City of Santa Barbara’s capital assets can be found in Notes 1 and 5 to the financial statements and Required Supplementary Information of this report.

Long-Term Debt
Table 6 below summarizes outstanding long-term debt related to the issuance of bonds, certificates of participation, and loans; the table excludes outstanding claims payable, deferred debt costs, and compensated absences. As shown in the table, the City had approximately $170.1 million ($182.5 million in the prior year) in outstanding long-term debt at June 30, 2022, a net decrease of $12.4 million from the prior year. It is important to note that the Governmental Activities, which primarily consists of the General Fund, has no long-term indebtedness, which is a good financial indicator. (30)
Revenue Bonds
The City has a total of $35.2 Million in outstanding revenue bonds including the following: $25.6 Million of 2019 Airport refunding bonds, $5.1 Million of 2016 Sewer refunding bonds, and $4.5 Million of 2014 Waterfront refunding bonds.

Certificates of Participation
The Water Fund has $7.3 Million in outstanding COP bonds which refunded the 2002 COP bonds in 2013 issued at $22.7 Million. These proceeds were used to finance capital improvements to the water distribution system.

Loans
Of the outstanding $118.1 Million in loans payable, $75.4 Million relates to the Water Fund. Two of the Water Fund loans are low-interest loans from the State Department of Water Resources (SDWR) used to fund the Cater Water Treatment Plant Project, the Ortega Ground Water Treatment Plant Project, and the Cater Water Treatment Plant-Phase III Project. Approximately 40% of the SDWR loans will be reimbursed by the Montecito Water District and the Carpinteria Water District for the Cater Water Treatment Plant Project pursuant to a long-standing joint powers agreement. The third loan is a low interest loan from the State Water Resources Control Board used to fund the Desalination Plant Reactivation Project. The Desalination Project loan was issued for $80.0 Million, with an outstanding balance of $55.7 Million at June 30, 2023. The Desalination Project was completed in FY2018.

The Waterfront Fund has $8.0 Million in outstanding loans from the State Department of Parks & Recreation, Division of Boating and Waterways, used to finance major renovations to the marina.

The Airport Fund carries outstanding loans from the State Department of Transportation totaling $0.20 Million, used to finance capital improvements at the airport.

The Wastewater Fund accounts for $31.2 Million in loans from the California State Water Resources Control Board for sewer infrastructure improvements. Additional information on the City of Santa Barbara’s long-term debt can be found in Note 7 to the financial statements. At this time all City Funds have sufficient reserves and cash-flow projections to meet all current debt obligations in the near future.

Under Governmental activities, the City entered into a financing agreement in December 2021 to purchase two Arrow XT pierce ultimate configuration 1500 GPM Triple Combination Pumping Engines for $3.9 Million at a rate of 1.3% with a maturity date of June 2029. Current outstanding balance $3.3 Million.
(31)
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City of Santa Barbara’s largest industry is tourism. The mild and sunny climate attracts visitors from all over the world, who stay in the local lodging establishments, shop in the local stores, and dine in the local restaurants. Consequently, the City receives a fair amount of revenues that are either directly or indirectly tied to tourism. In the General Fund, for example, sales taxes represent 36.4% of total revenues while transient occupancy taxes (TOT) represent 28.0%. Other operations outside of the General Fund are also dependent, to varying degrees, on tourism. These include the Waterfront Fund, which accounts for the activities along the beach, including Sterns Wharf and the harbor. Its revenues are primarily derived from parking and percentage rents from merchants (shops and restaurants). These revenues are largely impacted by economic conditions, but also by weather. Similarly, the Airport Fund is affected by trends and economic conditions that affect travel.

Over the past year, the local economy has experienced a plateau in tourism activities after a rebound from the pandemic during FY2022. Despite the slowdown, it is expected that general fund revenues will only be slightly affected. The real estate market is still strong. Property tax should be higher than expected for the upcoming years with a 5.0% budget increase for FY2024.Transient Occupancy Tax will be projected at an additional $4.0 Million mainly due to an increase in average daily rates. Indeed, the FY2024 budget reflects a continuance of more stable economic and city activities after a period of three years of instability directly related to the pandemic. The FY2024 budget represents a plan for the delivery of services to meet the needs of the City’s residents and visitors during a challenging time of economic uncertainty. A longer-term view highlights continued challenges in the coming years.

In December 2022, the City Council took decisive action to address the City’s pension costs and liabilities more substantially by directing staff to develop a pension management policy and allocating General Fund resources to be used to set up a Section 115 trust. The Trust was established during FY2024 with a projected return that should surpass 5.5%.

The City will consider a variety of short- and long-term strategies to effectively manage through current economic uncertainty and rising costs. These strategies may include continuing to control expenditures to achieve savings, considering revenue generating options and resource realignment focusing on the City Council’s priorities.

REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have any questions about this report or need any additional financial information, please access the City’s Internet web site at www.SantaBarbaraCa.gov/Finance/Budget-Reports. You may also contact the City’s Finance Department at PO Box 1990 (735 Anacapa Street), Santa Barbara, California, 93101, (805) 564-5528, or email the Accounting Division, at [email protected]. (32)

BASIC FINANCIAL STATEMENTS
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CITY OF SANTA BARBARA

STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(34)
Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:

Pooled Cash and Investments $ 150,279,171 $ 184,242,513 $ 334,521,684 Receivables:

Accounts, Net 2,823,681 36,890,397 39,714,078
Loans 77,912,073 - 77,912,073
Interest 1,499,439 - 1,499,439
Leases 164,472 7,652,257 7,816,729
Due from Other Governments 33,804,860 - 33,804,860
Prepaid Assets and Deposits 3,213,229 4,992,735 8,205,964 Inventory - 131,273 131,273
Internal Balances 9,629,568 (9,629,568) -
Total Current Assets 279,326,493 224,279,607 503,606,100 Noncurrent Assets:

Receivables:

Loans - 3,286,442 3,286,442
Leases 4,325,847 24,906,990 29,232,837
Restricted:

Cash and Investments with Fiscal Agents - 3,383,657 3,383,657 Capital Assets:

Not Being Depreciated 251,138,574 64,961,429 316,100,003 Being Depreciated, Net 284,604,295 515,925,511 800,529,806 Total Noncurrent Assets 540,068,716 612,464,029 1,152,532,745 Total Assets 819,395,209 836,743,636 1,656,138,845

DEFERRED OUTFLOWS OF RESOURCES
Pension-Related items 109,853,507 22,420,393 132,273,900 OPEB-Related items 11,258,776 - 11,258,776
Deferred Charge on Refunding - 1,029,134 1,029,134
Total Deferred Outflows of Resources 121,112,283 23,449,527 144,561,810

LIABILITIES
Current Liabilities:

Accounts Payable 10,533,654 18,950,786 29,484,440
Salaries and Benefits Payable 4,101,041 1,478,295 5,579,336 Interest Payable - 1,057,041 1,057,041
Unearned Revenue 8,792,508 1,140,057 9,932,565
Deposits 784,618 2,640,257 3,424,875
Due to Other Governments 12,969,602 - 12,969,602
Lease Payable 199,975 95,481 295,456
Subscription Payable 962,498 294,594 1,257,092
Compensated Absences 8,738,095 2,939,505 11,677,600
Claims Liabilities 5,364,506 - 5,364,506
Total OPEB Liability 1,991,632 - 1,991,632
Long-Term Debt 530,628 13,136,051 13,666,679
Total Current Liabilities 54,968,757 41,732,067 96,700,824 Noncurrent Liabilities:

Unearned Revenue - 3,286,442 3,286,442
Lease Payable 2,062,264 1,040,552 3,102,816
Subscription Payable 927,380 766,594 1,693,974
Net Pension Liability 334,889,069 65,484,861 400,373,930 Total OPEB Liability 45,539,670 - 45,539,670
Compensated Absences 970,899 333,534 1,304,433
Claims Liability 15,771,494 - 15,771,494
Long-Term Debt 2,744,384 148,900,818 151,645,202
Total Noncurrent Liabilities 402,905,160 219,812,801 622,717,961 Total Liabilities 457,873,917 261,544,868 719,418,785

DEFERRED INFLOWS OF RESOURCES
Lease Related 4,290,117 31,262,485 35,552,602
Pension Related 8,849,334 232,673 9,082,007
OPEB Related 15,096,082 - 15,096,082
Total Deferred Inflows of Resources 28,235,533 31,495,158 59,730,691

NET POSITION
Net Investment in Capital Assets 530,287,826 416,479,524 946,767,350 Restricted for:

Administration 33,780 - 33,780
Public Safety Projects 2,095,240 - 2,095,240
Public Works 25,144,877 - 25,144,877
Community Services 6,383,520 - 6,383,520
Community Development 3,157,869 - 3,157,869
Capital Improvements 6,114,161 - 6,114,161
Debt Service Reserve - 3,383,657 3,383,657
Airport Improvements - 5,049,859 5,049,859
Affordable Housing 67,819,177 - 67,819,177
Unrestricted (186,638,408) 142,240,097 (44,398,311)
Total Net Position $ 454,398,042 $ 567,153,137 $ 1,021,551,179

CITY OF SANTA BARBARA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(35)
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities
Administration $ 20,923,932 $ 2,688,947 $ 9,147,398 $ - Public Safety 65,507,780 5,464,352 1,497,829 -
Public Works 52,188,281 8,542,278 315,907 18,796,311
Community Services 31,009,453 7,308,564 4,510,505 6,627 Community Development 19,419,514 7,871,545 4,306,203 -
Sustainability and Resilience 41,705 - - -
Total Governmental Activities 189,090,665 31,875,686 19,777,842 18,802,938 Business-Type Activities
Water 56,916,900 67,334,484 1,315,604 -
Wastewater 25,529,577 27,437,585 - -
Airport 33,461,853 28,681,159 800,878 73,129
Waterfront 17,258,021 18,158,277 - 52,383
Solid Waste 34,838,199 35,827,883 - -
Downtown Parking 11,236,688 9,130,822 - -
Golf Course 3,358,517 4,178,373 - -
Clean Energy 37,597,716 43,407,951 - -
Total Business-Type Activities 220,197,471 234,156,534 2,116,482 125,512 Total $ 409,288,136 $ 266,032,220 $ 21,894,324 $ 18,928,450 General Revenues
Taxes:

CITY OF SANTA BARBARA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(36)
Functions/Programs
Governmental Activities
Administration
Public Safety
Public Works
Community Services
Community Development
Sustainability and Resilience
Total Governmental Activities
Business-Type Activities
Water
Wastewater
Airport
Waterfront
Solid Waste
Downtown Parking
Golf Course
Clean Energy
Total Business-Type Activities
Total
General Revenues
Taxes:

Property Taxes (Net of Pass-Through
Payments)
Transient Occupancy
Sales and Use
Business License
Utility Users
Cannabis
Real Property Transfer Tax
Other Taxes
Franchise Fees
Unrestricted Motor Vehicle License-in-Lieu
Investment Income
Other Revenue
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year, as Restated
Net Position - End of Year
Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Total
$ (9,087,587) $ - $ (9,087,587)
(58,545,599) - (58,545,599)
(24,533,785) - (24,533,785)
(19,183,757) - (19,183,757)
(7,241,766) - (7,241,766)
(41,705) - (41,705)
(118,634,199) - (118,634,199)
- 11,733,188 11,733,188
- 1,908,008 1,908,008
- (3,906,687) (3,906,687)
- 952,639 952,639
- 989,684 989,684
- (2,105,866) (2,105,866)
- 819,856 819,856
- 5,810,235 5,810,235
- 16,201,057 16,201,057
(118,634,199) 16,201,057 (102,433,142)
46,006,164 - 46,006,164
31,455,712 - 31,455,712
59,790,403 - 59,790,403
2,683,821 - 2,683,821
16,381,178 - 16,381,178
1,388,089 - 1,388,089
862,195 - 862,195
8,943 - 8,943
4,253,814 - 4,253,814
89,665 - 89,665
2,406,448 2,797,266 5,203,714
239,524 188,823 428,347
(1,175,828) 1,175,828 -
164,390,128 4,161,917 168,552,045
45,755,929 20,362,974 66,118,903
408,642,113 546,790,163 955,432,276
$ 454,398,042 $ 567,153,137 $ 1,021,551,179

CITY OF SANTA BARBARA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(37)
Special Revenue Capital Projects
Fund Fund Other Total
General Affordable Street Grant Governmental Governmental Fund Housing Capital Funds Funds
ASSETS
Pooled Cash and Investments $ 32,596,131 $ 3,094,334 $ 79,602,179 - $ $ 115,292,644 Receivables:

Accounts, Net 2,539,931 - - 27,747 2,567,678
Loans 86,814 64,855,657 12,969,602 - 77,912,073
Interest 1,499,439 - - - 1,499,439
Leases 4,134,742 - - 355,577 4,490,319
Due from Other Governments 14,801,427 12,524,177 - 6,479,256 33,804,860 Prepaids Assets and Deposits 1,243,476 - - - 1,243,476
Interfund Receivables 15,040,564 - - 15,040,564 -
Advances to Other Funds 2,096,996 - - - 2,096,996
Total Assets $ 74,039,520 $ 67,949,991 $ 12,524,177 $ 99,434,361 $ 253,948,049

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND

FUND BALANCES

LIABILITIES
Accounts Payable $ 2,069,116 $ 107,712 $ 1,297,632 $ 5,594,601 $ 9,069,061 Salaries and Benefits Payable 3,222,553 23,101 - 387,172 3,632,826 Unearned Revenue 7,655,865 - - 1,136,643 8,792,508
Deposits 563,775 - - 220,843 784,618
Due to Other Governments - - - 12,969,602 12,969,602
Interfund Payables - 10,526,887 - 3,084,727 13,611,614
Advances from Other Funds - - - 1,600,005 1,600,005
Total Liabilities 13,511,309 130,813 11,824,519 24,993,593 50,460,234

DEFERRED INFLOWS OF RESOURCES
Leases 3,948,649 - - 341,468 4,290,117
Unavailable Revenue 816,298 - 8,571,915 2,077,125 11,465,338 Total Deferred Inflows of Resources 4,764,947 - 8,571,915 2,418,593 15,755,455

FUND BALANCES
Nonspendable 3,427,286 - - - 3,427,286
Restricted 2,601,010 67,819,178 29,574,628 - 99,994,816 Committed 42,050,737 - 46,668,260 - 88,718,997
Unassigned 7,684,231 - (7,872,257) (4,220,713) (4,408,739) Total Fund Balances 55,763,264 67,819,178 (7,872,257) 72,022,175 187,732,360 Total Liabilities, Deferred
Inflows of Resources
and Fund Balances $ 74,039,520 $ 67,949,991 $ 12,524,177 $ 99,434,361 $ 253,948,049

CITY OF SANTA BARBARA

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(38)
Fund Balances for Governmental Funds $ 187,732,360
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and, therefore are not reported in the fund financial statements. This amount does not include $21,307,787 of internal service funds net capital assets.

Capital Assets Not Being Depreciated $ 251,092,712
Capital Assets Being Depreciated 446,434,574
Accumulated Depreciation (183,092,204) 514,435,082
Long-term liabilities applicable to the City’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities.

All liabilities, both current and long-term, are reported in the statement of net position. Balances at June 30, 2023 are:

Compensated Absences (8,948,609)
Lease Obligations (1,689,092)
Subscription Obligations (137,757)
Pension-related debt applicable to the City’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred Outflows of Resources - Pension Related 103,814,324 Deferred Inflows of Resources - Pension Related (8,786,662) Total Pension Liability (99,855)
Net Pension Liability (315,986,821) (221,059,014)
Internal Service funds are used by management to charge the costs of certain activities involved in rendering services to departments within the City. The assets and liabilities of the internal service funds are included in governmental in the statement of net position. (27,400,266)
Receivables that are measurable but not available are recorded as deferred inflows of resources under the modified accrual basis of accounting. 11,465,338 Net Position of Governmental Activities $ 454,398,042

CITY OF SANTA BARBARA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(39)
Special Revenue Capital Projects
Fund Fund Other Total
General Affordable Street Grant Governmental Governmental Fund Housing Capital Funds Funds

REVENUES
Taxes $ 145,130,220 $ - $ - $ 18,976,958 $ 164,107,178
Franchise Fees 4,253,814 - - - 4,253,814
Intergovernmental 2,742,141 - 6,923,965 6,989,693 16,655,799 Charges for Services 28,765,424 - - 383,817 29,149,241
Use of Money and Property 1,110,953 1,181,929 - 163,780 2,456,662 Fines and Forfeitures 1,322,376 - - 758,851 2,081,227
Other 11,446,367 - - 4,719,953 16,166,320
Total Revenues 194,842,271 1,110,953 6,923,965 31,993,052 234,870,241

EXPENDITURES
Current:

Mayor and City Council 3,273,811 - - - 3,273,811
City Attorney - 4,200,606 - 786 4,201,392
City Administration 3,609,617 - - - 3,609,617
Administrative Services - - - 62 62
Human Resources 2,574,360 - - - 2,574,360
Finance 7,125,980 - - 25,461 7,151,441
Public Safety - 82,610,955 - 1,128,982 83,739,937
Public Works 10,097,007 - - 17,008,235 27,105,242
Community Services 27,063,009 - - 1,889,715 28,952,724
Community Development 14,111,285 1,175,531 - 2,982,432 18,269,248 Sustainability and Resilience 16,610 - - 25,469 42,079
Capital Outlay 224,197 - 8,981,828 33,476,014 42,682,039 Debt Service:

Principal Retirement 480,344 - - 4,575 484,919
Interest and Fiscal Charges 48,734 - - 15,840 64,574
Total Expenditures 155,436,515 1,175,531 8,981,828 56,557,571 222,151,445

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 39,405,756 (64,578) (2,057,863) (24,564,519) 12,718,796

OTHER FINANCING SOURCES (USES)
Lease Obligation - - - 806,982 806,982
Subscription Obligation 224,197 - - - 224,197
Transfers In 667,954 - 160,186 38,404,428 39,232,568
Transfers Out (36,102,778) - - (9,367,595) (45,470,373) Total Other Financing
Sources (Uses) (35,210,627) - 160,186 29,843,815 (5,206,626) NET CHANGE IN FUND BALANCE 4,195,129 (64,578) (1,897,677) 5,279,296 7,512,170 Fund Balances (Deficit) - Beginning of Year 51,568,135 67,883,756 (5,974,580) 66,742,879 180,220,190 FUND BALANCES (DEFICIT) - END OF YEAR $ 55,763,264 $ 67,819,178 $ (7,872,257) $ 72,022,175 $ 187,732,360

CITY OF SANTA BARBARA

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(40)
Net Change in Fund Balances - Total Governmental Funds $ 7,512,170 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures and do not include capital contributions. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense and capital contributions are recognized as revenue. This is the amount by which capital outlay exceeded depreciation expense in the current period and the amount of capital contributions received.

Capital Outlay $ 23,150,812
Depreciation Expense (9,595,299) 13,555,513
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.

Neither transaction, however, has any effect on net position.

These amounts are the net effect of these differences in the treatment of long-term debt and related items.

Lease Obligation 806,982
Subscription Obligation 224,197
Principal Paid 484,919
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. (627,624)
Pension expenditures reported in the governmental funds includes the annual required contributions. In the statement of activities, pension expense includes the change in the net pension liability, and related changes in pension amounts for deferred outflows of resources and deferred inflows of resources. 19,902,223 Certain revenues in the governmental funds are deferred because they are not collected within the prescribed time period after year-end. However, the revenues are included on the accrual basis used in the government-wide statements. This amount represents the change during the fiscal year. 1,768,869 Internal service funds are used by management to charge costs of activities involved in rendering services to departments within the City. The changes in net position of the internal service funds are included in the statement of activities. 2,128,680 Change in Net Position of Governmental Activities $ 45,755,929

CITY OF SANTA BARBARA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(41)
Water Wastewater Airport Waterfront
ASSETS
Current Assets:

Pooled Cash and Investments $ 99,605,920 $ 20,804,093 $ 31,686,654 $ 14,645,324 Accounts Receivable, Net 13,197,030 5,106,383 1,963,490 379,044 Prepaid Assets 4,189,175 - - -
Deposits - - - -
Leases Receivable 14,021 32,772 3,642,642 3,455,397
Inventories - - - -
Total Current Assets 117,006,146 25,943,248 37,292,786 18,479,765 Noncurrent Assets:

Restricted:

Cash and Investments with Fiscal Agent 2,792,098 1 2 591,556 Advances to Other Funds - - - -
Leases Receivable - 346,878 13,195,317 10,484,520
Loans Receivable 3,286,442 - - -
Capital Assets:

Nondepreciable 30,927,747 9,423,046 10,797,759 2,583,062 Depreciable, Net 221,788,191 99,925,447 143,773,563 23,889,625 Total Noncurrent Assets 258,794,478 109,695,372 167,766,641 37,548,763 Total Assets 375,800,624 135,638,620 205,059,427 56,028,528

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 259,585 47,759 522,272 199,518 Pension-Related Items 6,874,136 4,785,698 5,365,365 2,647,463 OPEB-Related items - - - -
Total Deferred Outflows of Resources 7,133,721 4,833,457 5,887,637 2,846,981

LIABILITIES
Current Liabilities:

Accounts Payable 5,837,448 1,270,970 1,446,448 357,750
Salaries and Benefits Payable 415,712 264,358 323,436 253,061 Interest Payable 78,618 286,483 314,880 377,060
Unearned Revenue - - 462,088 333,771
Deposits 647,944 237 1,278,257 687,903
Interfund Payable - - - -
Compensated Absences Payable 996,426 605,402 462,264 528,893 Lease Payable - - - 15,440
Subscription Payable 169,509 12,114 112,971 -
Claims Payable - - - -
Total OPEB Liability, due in one year - - - -
Current Portion Long-Term Debt 7,526,760 2,704,589 1,388,132 1,516,570 Total Current Liabilities 15,672,417 5,144,153 5,788,476 4,070,448 Noncurrent Liabilities:

Advances from Other Funds - - - -
Unearned Revenue 3,286,442 - - -
Net Pension Liability 19,937,157 13,413,733 13,216,607 8,682,975 Total Other Postemployment Benefit Liability - - - -
Compensated Absences Payable, Net of Current Portion 113,062 68,692 52,451 60,011 Lease Payable, Net of Current Portion - - - 90,377
Subscription Payable, Net of Current Portion 514,328 13,230 239,036 - Claims Payable, Net of Current Portion - - - -
Long-Term Debt, Net of Current Portion 75,991,105 34,128,160 27,784,621 10,996,932 Total Noncurrent Liabilities 99,842,094 47,623,815 41,292,715 19,830,295 Total Liabilities 115,514,511 52,767,968 47,081,191 23,900,743

DEFERRED INFLOWS OF RESOURCES
Lease Related 11,951 368,020 16,193,599 13,377,980
Pension Related 71,338 49,664 55,680 27,475
OPEB Related - - - -
Total Deferred Inflows of Resources 83,289 417,684 16,249,279 13,405,455

NET POSITION
Net Investment in Capital Assets 167,021,108 71,847,118 125,730,866 14,140,144 Restricted for Debt Service 2,792,098 1 2 591,556
Restricted for Airport Improvements - - 5,049,859 -
Unrestricted 97,523,339 15,439,306 16,835,867 6,837,611 Total Net Position $ 267,336,545 $ 87,286,425 $ 147,616,594 $ 21,569,311 Prior years’ accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds Current year’s adjustment to reflect the consolidation of internal service funds’ activities related to the enterprise funds Net Position of Business-Type Activities

CITY OF SANTA BARBARA

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(42)
Other Enterprise Internal
Solid Waste Clean Energy Funds Total Service Funds
ASSETS
Current Assets:

Pooled Cash and Investments $ 6,864,637 $ 1,920,255 $ 8,715,630 $ 184,242,513 $ 34,986,527 Accounts Receivable, Net 6,998,238 9,090,946 155,266 36,890,397 256,003 Prepaid Assets - 578,560 - 4,767,735 1,969,753
Deposits - - 225,000 225,000 -
Leases Receivable - - 507,425 7,652,257 -
Inventories - - 131,273 131,273 -
Total Current Assets 13,862,875 11,589,761 9,734,594 233,909,175 37,212,283 Noncurrent Assets:

Restricted:

Cash and Investments with Fiscal Agent - - - 3,383,657 - Advances to Other Funds - - - - 1,600,005
Leases Receivable - - 880,275 24,906,990 -
Loans Receivable - - - 3,286,442 -
Capital Assets:

Nondepreciable - 11,229,815 - 64,961,429 45,862
Depreciable, Net 926,516 - 25,622,169 515,925,511 21,261,925 Total Noncurrent Assets 926,516 - 37,732,259 612,464,029 22,907,792 Total Assets 14,789,391 11,589,761 47,466,853 846,373,204 60,120,075

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - - - 1,029,134 -
Pension-Related Items 883,455 120,453 1,743,823 22,420,393 6,039,183 OPEB-Related items - - - 11,258,776 -
Total Deferred Outflows of Resources 883,455 120,453 1,743,823 23,449,527 17,297,959

LIABILITIES
Current Liabilities:

Accounts Payable 4,397,780 4,939,127 701,263 18,950,786 1,464,593 Salaries and Benefits Payable 47,596 5,873 168,259 1,478,295 468,215 Interest Payable - - - 1,057,041 -
Unearned Revenue 151,250 21,060 171,888 1,140,057 -
Deposits - - 25,916 2,640,257 -
Interfund Payable - - - - 1,428,950
Compensated Absences Payable 84,254 6,217 256,049 2,939,505 684,348 Lease Payable 8,416 - 71,625 95,481 5,260
Subscription Payable - - 294,594 887,550
Claims Payable - - - - 5,625,607
Total OPEB Liability, due in one year - - - - 1,991,632 Current Portion Long-Term Debt - - 13,136,051 - 530,628 Total Current Liabilities 4,689,296 4,972,277 1,395,000 41,732,067 13,086,783 Noncurrent Liabilities:

Advances from Other Funds - 2,096,996 - 2,096,996 -
Unearned Revenue - - - 3,286,442 -
Net Pension Liability 2,184,900 353,269 7,696,220 65,484,861 18,802,393 Total Other Postemployment Benefit Liability - - - 45,539,670 - Compensated Absences Payable, Net of Current Portion 9,560 705 29,053 333,534 76,037 Lease Payable, Net of Current Portion 908,620 - 41,555 1,040,552 567,887 Subscription Payable, Net of Current Portion - - 766,594 864,571 Claims Payable, Net of Current Portion - - - 15,510,393 - Long-Term Debt, Net of Current Portion - - 148,900,818 - 2,744,384 Total Noncurrent Liabilities 3,103,080 2,450,970 7,766,828 221,909,797 84,105,335 Total Liabilities 7,792,376 7,423,247 9,161,828 263,641,864 97,192,118

DEFERRED INFLOWS OF RESOURCES
Lease Related - - 1,310,935 31,262,485 -
Pension Related 9,168 1,250 18,098 232,673 62,672
OPEB Related - - - 15,096,082 -
Total Deferred Inflows of Resources 9,168 1,250 1,329,033 31,495,158 15,158,754

NET POSITION
Net Investment in Capital Assets 926,516 - 36,813,772 416,479,524 21,307,787 Restricted for Debt Service - - - 3,383,657 -
Restricted for Airport Improvements - - - 5,049,859 -
Unrestricted 6,944,786 4,285,717 1,906,043 149,772,669 (56,240,625) Total Net Position $ 7,871,302 $ 4,285,717 $ 38,719,815 574,685,709 $ (34,932,838) Prior years’ accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds (4,536,155) Current year’s adjustment to reflect the consolidation of internal service funds’ activities related to the enterprise funds (2,996,417) Net Position of Business-Type Activities $ 567,153,137

CITY OF SANTA BARBARA

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(43)
Water Wastewater Airport Waterfront

OPERATING REVENUES
Sales $ 62,040,166 $ 26,315,721 $ - $ -
Service Charges 4,450,302 1,011,226 8,483,867 11,249,551 Other Revenues 844,016 70,687 126,032 920,711
Total Operating Revenues 67,334,484 27,397,634 8,609,899 12,170,262

OPERATING EXPENSES
Salaries, Wage, and Benefits 13,050,110 8,409,643 9,983,976 7,757,130 Material, Supplies, and Services 32,038,651 10,658,506 14,850,829 7,015,162 Depreciation 10,122,972 5,227,903 6,759,878 1,587,447
Total Operating Expenses 55,211,733 24,296,052 31,594,683 16,359,739 OPERATING INCOME (LOSS) 12,122,751 3,101,582 (22,984,784) (4,189,477)

NONOPERATING REVENUES (EXPENSES)
Interest Income 848,751 157,491 948,810 730,227
Intergovernmental Revenue 1,315,604 - 800,878 -
Leases and Rents - 39,951 20,071,260 5,988,015
Other Income - - 188,823 -
Interest Expense (764,954) (806,370) (1,357,654) (586,255) Total Nonoperating Revenues
(Expenses) 1,399,401 (608,928) 20,652,117 6,131,987

INCOME (LOSS) BEFORE TRANSFERS AND
CONTRIBUTIONS 13,522,152 2,492,654 (2,332,667) 1,942,510

CONTRIBUTIONS
Capital Contributions - - 73,129 52,383

TRANSFERS
Transfers In 67,791 67,963 - -
Transfers Out (7,483) (5,107) (30,422) -
Total Transfers 60,308 62,856 (30,422) -
CHANGES IN NET POSITION 13,582,460 2,555,510 (2,289,960) 1,994,893 Total Net Position (Deficit) - Beginning of Year, as Restated 253,754,085 84,730,915 149,906,554 19,574,418 TOTAL NET POSITION - END OF YEAR $ 267,336,545 $ 87,286,425 $ 147,616,594 $ 21,569,311 Adjustment to Reflect the Consolidation of Internal
Service Fund Activities Related to Enterprise Funds
Change in Net Position - Enterprise Funds
Change in Net Position of Business-Type Activities

CITY OF SANTA BARBARA

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(44)
Other Enterprise Internal
Solid Waste Clean Energy Funds Total Service Funds

OPERATING REVENUES
Sales $ 35,768,149 $ - $ 124,124,036 - $ $ -
Service Charges - 43,407,951 12,579,037 81,181,934 37,012,187 Other Revenues 49,674 - 247,568 2,258,688 1,010,109
Total Operating Revenues 35,817,823 43,407,951 12,826,605 207,564,658 38,022,296

OPERATING EXPENSES
Salaries, Wage, and Benefits 1,506,809 180,409 5,142,879 46,030,956 15,336,775 Material, Supplies, and Services 32,791,136 37,417,307 7,717,034 142,488,625 25,051,496 Depreciation 24,149 - 1,451,921 25,174,270 3,475,845
Total Operating Expenses 34,322,094 37,597,716 14,311,834 213,693,851 43,864,116 OPERATING INCOME (LOSS) 1,495,729 5,810,235 (1,485,229) (6,129,193) (5,841,820)

NONOPERATING REVENUES (EXPENSES)
Interest Income 46,717 - 109,683 2,841,679 80,122
Intergovernmental Revenue - - - 2,116,482 -
Leases and Rents 10,060 - 482,590 26,591,876 -
Other Income - - - 188,823 -
Interest Expense (18,102) - (18,281) (3,551,616) (168,016) Total Nonoperating Revenues
(Expenses) 38,675 - 573,992 28,187,244 (87,894)

INCOME (LOSS) BEFORE TRANSFERS AND
CONTRIBUTIONS 1,534,404 5,810,235 (911,237) 22,058,051 (5,929,714)

CONTRIBUTIONS
Capital Contributions - - - 125,512 -

TRANSFERS
Transfers In 67,791 - 1,068,605 1,272,150 5,272,936
Transfers Out (50,973) - (2,337) (96,322) (210,959)
Total Transfers 16,818 - 1,066,268 1,175,828 5,061,977
CHANGES IN NET POSITION 1,551,222 5,810,235 155,031 23,359,391 (867,737) Total Net Position (Deficit) - Beginning of Year, as Restated 6,320,080 (1,524,518) 38,564,784 551,326,318 (34,065,101) TOTAL NET POSITION - END OF YEAR $ 7,871,302 $ 4,285,717 $ 38,719,815 $ 574,685,709 $ (34,932,838) Adjustment to Reflect the Consolidation of Internal
Service Fund Activities Related to Enterprise Funds $ (2,996,417) Change in Net Position - Enterprise Funds 23,359,391
Change in Net Position of Business-Type Activities $ 20,362,974

CITY OF SANTA BARBARA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(45)
Water Wastewater Airport Waterfront

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 64,741,465 $ 26,132,079 $ 7,588,626 $ 11,098,891 Payments to Suppliers of Goods or Services (31,732,128) (10,586,146) (13,684,699) (6,994,691) Payments to Employees (12,935,387) (8,273,306) (9,755,473) (7,728,749) Receipts from Others 844,016 70,687 126,032 920,711
Net Cash Provided (Used) by
Operating Activities 20,917,966 7,343,314 (15,725,514) (2,703,838)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Transfers In 67,791 67,963 - -
Cash Transfers Out (7,483) (5,107) (30,422) -
Advances from (to) Other Funds - - - -
Operating Grants Received 1,315,604 - 800,878 -
Net Cash Provided (Used) by
Noncapital Financing Activities 1,375,912 62,856 770,456 -

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets (18,384,265) (3,022,563) (2,352,362) (2,302,908) Lease and Rental Income - 39,951 20,071,260 5,988,015
Principal Paid on Capital Debt (7,339,421) (2,624,755) (1,323,062) (1,461,086) Interest Paid (914,957) (927,263) (1,371,484) (575,881) Net Cash Provided (Used) by Capital and
Related Financing Activities (26,638,643) (6,534,630) 15,024,352 1,648,140

CASH FLOWS FROM INVESTING ACTIVITIES
Loans Payments Received 1,073,892 - - -
Investment Income 848,751 157,491 948,810 730,227
Net Cash Provided (Used) by
Investing Activities 1,922,643 157,491 948,810 730,227

NET CHANGE IN CASH AND CASH
EQUIVALENTS (2,422,122) 1,029,031 1,018,104 (325,471)
Cash and Cash Equivalents - Beginning of Year 104,820,140 19,775,063 30,668,552 15,562,351 CASH AND CASH EQUIVALENTS - END OF YEAR $ 102,398,018 $ 20,804,094 $ 31,686,656 $ 15,236,880

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Current Assets:

Pooled Cash and Investments $ 99,605,920 $ 20,804,093 $ 31,686,654 $ 14,645,324 Noncurrent Assets:

Restricted:

Cash and Investments with Fiscal Agent 2,792,098 1 2 591,556 Total Cash and Cash Equivalents $ 102,398,018 $ 20,804,094 $ 31,686,656 $ 15,236,880

CITY OF SANTA BARBARA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(46)
Other Enterprise Internal
Solid Waste Clean Energy Funds Total Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 34,119,060 $ 39,610,356 $ 12,478,615 $ 195,769,092 $ 36,807,187 Payments to Suppliers of Goods or Services (31,536,381) (38,232,615) (7,725,367) (140,492,027) (20,254,093) Payments to Employees (1,514,789) (174,944) (5,084,935) (45,467,583) (13,110,777) Receipts from Others 49,674 - 247,568 2,258,688 1,010,109 Net Cash Provided (Used) by
Operating Activities 1,117,564 1,202,797 (84,119) 12,068,170 4,452,426

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Transfers In 67,791 - 1,068,605 1,272,150 5,272,936 Cash Transfers Out (50,973) - (2,337) (96,322) (210,959) Advances from (to) Other Funds - 34,039 (440,610) (406,571) (568,275) Operating Grants Received - - - 2,116,482 -
Net Cash Provided (Used) by
Noncapital Financing Activities 16,818 34,039 625,658 2,885,739 4,493,702

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets (950,665) - (271,254) (27,284,017) (4,107,866) 10,060 - 482,590 26,591,876 -
Principal Paid on Capital Debt - - (12,748,324) - (518,363) Interest Paid (18,102) - (18,281) (3,825,968) (168,016) Net Cash Provided (Used) by Capital and
Related Financing Activities (958,707) - 193,055 (17,266,433) (4,794,245)

CASH FLOWS FROM INVESTING ACTIVITIES
Loans Provided - - 1,073,892 -
Investment Income 46,717 - 109,683 2,841,679 80,122
Net Cash Provided (Used) by
Investing Activities 46,717 - 109,683 3,915,571 80,122

NET CHANGE IN CASH AND CASH
EQUIVALENTS 222,392 1,236,836 844,277 1,603,047 4,232,005 Cash and Cash Equivalents - Beginning of Year 6,642,245 683,419 7,871,353 186,023,123 30,754,522 CASH AND CASH EQUIVALENTS - END OF YEAR $ 6,864,637 $ 1,920,255 $ 8,715,630 $ 187,626,170 $ 34,986,527

RECONCILIATION OF CASH AND CASH EQUIVALENTS

TO THE STATEMENT OF NET POSITION
Current Assets:

Pooled Cash and Investments $ 6,864,637 $ 1,920,255 $ 8,715,630 $ 184,242,513 $ 34,986,527 Noncurrent Assets:

Restricted:

Cash and Investments with Fiscal Agent - - - 3,383,657 - Total Cash and Cash Equivalents $ 6,864,637 $ 1,920,255 $ 8,715,630 $ 187,626,170 $ 34,986,527

CITY OF SANTA BARBARA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(47)
Water Wastewater Airport Waterfront

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:

Operating Income (Loss) $ 12,122,751 $ 3,101,582 $ (22,984,784) $ (4,189,477) Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization 10,122,972 5,227,903 6,759,878 1,587,447 (Increase) Decrease in Operating Assets and
Deferred Outflows of Resources:

Accounts Receivable (748,968) (1,187,467) (1,193,296) (48,861) Lease Receivable 13,538 31,333 2,284,245 2,946,517
Prepaids Assets and Deposits (353,373) - - -
Inventory - - - -
Deferred Outflows of Resources - Pension Related (4,242,861) (3,008,021) (3,453,756) (1,589,635) Deferred Outflows of Resources - OPEB - - - -
Increase (Decrease) in Operating Liabilities and
Deferred Inflows of Resources:

Accounts Payable (23,941) 47,016 814,123 (85,346)
Salaries and Benefits Payable 106,080 64,746 85,156 64,691 Deposits Payable 74,660 5 95,233 15,534
Lease Payable - - - 105,817
Subscriptions Payable 683,837 25,344 352,007 -
Unearned Revenue (1,073,892) - 462,088 105,967
Compensated Absences Payable 122,096 87,735 67,058 58,914 Net Pension Liability 9,740,864 6,781,482 7,602,888 3,751,538 Total Other Postemployment Benefit Liability - - - -
Claims and Judgements - - - -
Deferred Inflows of Resources - Lease Related (14,341) (38,739) (2,543,511) (3,169,817) Deferred Inflows of Resources - Pension Related (5,611,456) (3,789,605) (4,072,843) (2,257,127) Deferred Inflows of Resources - OPEB Related - - - -
Total Adjustments 8,795,215 4,241,732 7,259,270 1,485,639 Net Cash Provided (Used) by
Operating Activities $ 20,917,966 $ 7,343,314 $ (15,725,514) $ (2,703,838)

NONCASH CAPITAL AND
FINANCING ACTIVITIES:

Capital Contributions $ - $ - $ 73,129 $ 52,383
Capital Assets in Accounts Payable $ 2,071,476 $ 602,115 $ 189,975 $ 18,559 NONCASH FLOWS FROM INVESTING ACTIVITIES:

Change in Fair Value $ (1,102,835) $ (230,343) $ (350,833) $ (162,123)

CITY OF SANTA BARBARA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(48)
Other Enterprise Internal
Solid Waste Clean Energy Funds Total Service Funds

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:

Operating Income (Loss) $ 1,495,729 $ 5,810,235 $ (1,485,229) $ (6,129,193) $ (5,841,820) Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization 24,149 - 1,451,921 25,174,270 3,475,845 (Increase) Decrease in Operating Assets and
Deferred Outflows of Resources:

Accounts Receivable (1,668,168) (3,818,655) (103,492) (8,768,907) (126,400) Lease Receivable - - 489,985 5,765,618 -
Prepaids Assets and Deposits - (294,878) - (648,251) 622,156 Inventory - - (48,638) (48,638) -
Deferred Outflows of Resources - Pension Related (517,036) (78,740) (1,107,236) (13,997,285) (3,857,365) Deferred Outflows of Resources - OPEB - - - - 1,684,507 Increase (Decrease) in Operating Liabilities and
Deferred Inflows of Resources:

Accounts Payable 337,719 (520,430) 109,471 678,612 (962,235) Salaries and Benefits Payable 13,127 668 50,213 384,681 74,750 Deposits Payable - - (4,072) 181,360 -
Lease Payable 917,036 - (69,166) 953,687 573,147
Subscriptions Payable - - - 1,061,188 1,752,121
Unearned Revenue 19,079 21,060 19,730 (445,968) (78,600) Compensated Absences Payable 26,237 1,689 661 364,390 82,141 Net Pension Liability 1,251,882 170,686 2,471,053 31,770,393 8,557,710 Total Other Postemployment Benefit Liability - - - - (6,393,423) Claims and Judgements - - - - 2,812,214
Deferred Inflows of Resources - Lease Related - - (502,573) (6,268,981) Deferred Inflows of Resources - Pension Related (782,190) (88,838) (1,356,747) (17,958,806) (4,649,421) Deferred Inflows of Resources - OPEB Related - - - - 6,727,099 Total Adjustments (378,165) (4,607,438) 1,401,110 18,197,363 10,294,246 Net Cash Provided (Used) by
Operating Activities $ 1,117,564 $ 1,202,797 $ (84,119) $ 12,068,170 $ 4,452,426

NONCASH CAPITAL AND
FINANCING ACTIVITIES:

Capital Contributions $ - $ - $ - $ 125,512 $ -
$ - $ - $ 38,212 $ 2,920,337 $ -
NONCASH FLOWS FROM INVESTING ACTIVITIES:

Change in Fair Value $ (76,005) $ - $ (96,330) $ (2,018,469) $ (308,264)

CITY OF SANTA BARBARA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(49)
Custodial
Funds
ASSETS
Current Assets:

Pooled Cash and Investments 548,405 $
Accounts Receivable, Net 47,633
Loans Receivable 2,131,104
Total Current Assets 2,727,142

LIABILITIES
Current Liabilities:

Accounts Payable 195
Total Current Liabilities 195

NET POSITION
Restricted for Others 2,726,947
Total Net Position $ 2,726,947

CITY OF SANTA BARBARA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Basic Financial Statements.
(50)
Custodial
Funds

ADDITIONS
Investment Income:

Interest $ 98,039
Charges for Service 165,491
Total Additions 263,530

DEDUCTIONS
Administrative Expenses 154,946
Program Expenses 40,394
Total Deductions 195,340
CHANGE IN NET POSITION 68,190
Net Position - Beginning of Year 2,658,757
NET POSITION - END OF YEAR $ 2,726,947
(51)

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(52)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Santa Barbara, California (the City), have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standards setting body for establishing governmental accounting and financial reporting principles. The following summary of the City’s more significant accounting policies is presented to assist the reader in interpreting the basic financial statements and other data in this report. These policies should be viewed as an integral part of the accompanying basic financial statements.

A. Description of the Financial Reporting Entity
The City’s reporting entity includes the City (the primary government) and its component units. In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended. The basic, but not the only, criterion for including a potential component unit within the City’s reporting entity is whether the City Council, as the City’s governing body, has financial accountability for the potential component unit.

The most significant manifestations of financial accountability include the ability of the Council to appoint a voting majority of the organization’s governing body and the ability to impose its will on the organization; or that there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City.

The City may be deemed to be financially accountable if an organization is fiscally dependent on the City regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government or a jointly appointed board. In addition to those organizations for which the City may be financially accountable, other organizations for which the City is not financially accountable, but for which the nature and significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete, may also be component units. Component units are presented on a “blended” basis when the component unit’s governing body is substantially the same as the City’s or the component unit provides services almost entirely to the City. In a blended presentation, a component unit’s balances and transactions are reported in a manner similar to the balances and transactions of the City. Based upon the application of these criteria, the following is a brief review of the City and each component unit within the City’s reporting entity.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(53)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Financial Reporting Entity (Continued) City of Santa Barbara
The City of Santa Barbara (the primary government) was incorporated on August 26, 1850. The City is a charter city under the laws of the state of California and operates under a Council-Administrator form of government. The Council consists of six council members elected by district, and a mayor elected at-large. The City will institute its first even year election in November 2024, with three Councilmember seats to be elected in November 2024, and three Councilmember seats and the Mayoral seat to be elected in November 2026. The current City Charter was adopted on May 2, 1967 and provides for the following services: public safety (police and fire), construction and maintenance of highways and streets, sanitation, culture and recreation, public improvements, planning, zoning and general administration. Enterprise funds, operated in a manner similar to a private business, include water, wastewater, solid waste, airport, parking, golf and waterfront.

Santa Barbara Public Financing Authority
The Santa Barbara Public Financing Authority was formed on April 1, 2002, by a joint powers agreement between the City of Santa Barbara and the Redevelopment Agency of the City of Santa Barbara. It was created to acquire and finance the acquisition of public capital improvements necessary or convenient for the operation of the City or Agency. The Santa Barbara Public Financing Authority did not have any activity during the fiscal year and is considered a blended component unit of the City. Separate financial statements are not prepared for the Authority.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(54)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position (i.e., fund balances) as presented in these statements to the net position presented in the Government-wide financial statements.

Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows for each proprietary fund and nonmajor funds aggregated. A column representing internal service funds is also presented in these statements. However, a portion of the internal service balances and activities have been combined with the governmental activities in the Government-wide financial statements.

The following are the major governmental funds of the City:
 The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
 The Affordable Housing Special Revenue Fund accounts for affordable housing financial activity of the City. This includes monitoring low and moderate income housing covenants and accounting for payments on outstanding housing loans.

Revenues are derived from principal and interest payments made by loan recipients.  The Street Grant Capital Capital Project Fund accounts for street-related capital projects financed by various grants.

The following are the major proprietary funds of the City:
 The Water Fund accounts for the provisions of water services to the residents of the City and some residents of the County.
 The Wastewater Fund accounts for the provision of sewer services to the residents of the City and some residents of the County.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(55)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued)  The Airport Fund accounts for the operation of the municipal airport and the administration of leases of airport property.
 The Waterfront Fund accounts for the operation of the City managed waterfront that includes a public wharf, a small craft harbor, and parking facilities.  The Solid Waste Fund accounts for refuse revenues received from customers, payments remitted to the trash hauler, and franchise and recycling fees paid by hauler that are used for recycling programs in the City.  The Clean Energy Fund accounts for the cost to procure clean and renewable electricity on behalf of the Santa Barbara Community.

Additionally, the City reports the following fund types:

Governmental Fund Types
 Special Revenue Funds account for the proceeds of specific revenue sources (other than special assessments or major capital projects), that are restricted to expenditures for special purposes.
 Capital Projects Funds account for financial resources to be used for the acquisition or construction of major facilities other than those financed by Proprietary Funds.

Proprietary Funds
 Internal Service Funds account for (1) a maintenance facility for fleet and motor pool equipment used by all City departments, (2) intra-city service building maintenance operations, (3) information systems and computer support services, (4) selfinsurance operations of workers’ compensation, unemployment, and general liability insurance coverage, (5) postemployment health insurance and other benefits for City employees at retirement, and (6) energy management coordination for all City operations.

Fiduciary Funds
 Custodial Funds are used to account for resources held by the City in a purely custodial capacity. Custodial funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. The custodial funds account for (1) moneys received from agencies for low- and moderate-income applicant’s rehabilitation housing loans, and (2) moneys received from agencies for the California Law Enforcement Tracking System (CLETS).

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as is the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.

Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the granting agency have been met.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Grant funds and sales taxes earned but not received by the end of the fiscal period are recorded as a receivable, and revenue is recognized if collected within 90 days of the end of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Proprietary, private-purpose trust funds, and custodial funds are reported using the economic resources measurement focus and the accrual basis of accounting.

D. New Accounting Pronouncements
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This standard defines a subscription-based information technology arrangement (SBITA); establishes that a SBITA results in a rightto-use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and requires note disclosures regarding a SBITA.

The City adopted the requirements of the guidance effective July 1, 2022 and has applied the provisions of this standard to the beginning of the period of adoption.

CITY OF SANTA BARBARA

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Interfund Activities
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total government column. In the statement of activities, internal services funds transactions have been eliminated.

However, transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated: Due to and from other funds, Advances to and from other funds, and Transfers in and out.

F. Definition of Operating and Nonoperating Revenues and Expenses Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. The principal operating revenues of the water, wastewater, solid waste, clean energy, parking, golf, airport and waterfront enterprise funds and the City’s internal service funds are charges to customers for sales and services. The enterprise funds also recognize as operating revenue service charges, leases and rents, and other revenue. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses.

G. Flow Assumption for Restricted Resources
When both restricted and unrestricted resources are available for use, it is the City’s policy for all fund types to use restricted resources first, and then unrestricted resources as they are needed.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Property Tax Calendar
In 1978, a State constitutional amendment (Article XIIIA) provided that the ad valorem real property tax rate be limited to 1% of market value and be levied only by the county and shared with all other jurisdictions. The County of Santa Barbara collects the property taxes and distributes them to taxing jurisdictions on the basis of the taxing jurisdictions’ assessed valuations, subject to adjustments for voter approved debt.

Property taxes are formally due on November 1 and February 1 and become delinquent as of December 10 and April 10, respectively. Taxes become a lien on the property effective March 1 of the preceding year.

The City is a participant of the County’s Teeter plan, which means the City would receive the full amount of tax due regardless of the amount actually collected. The County would assume the risk associated with collecting all existing and future past due property tax balances.

I. Cash and Cash Equivalents
Cash and cash equivalents are considered to be cash on hand, demand deposits and investments with original maturities of three months or less from the date of acquisition.

With respect to cash and investments with fiscal agents, all investments have an original maturity of less than three months and are considered to be cash equivalents.

The City’s proprietary fund participates in the pooling of City-wide cash and investments.

Amounts held in the City pool are available to the fund on demand and are considered to be cash and cash equivalents for statement of cash flow purposes. Investments not held in the City pool that are short-term investments with original maturities of three months or less from the date of acquisition are considered cash and cash equivalents.

J. Investment Policies
Effective July 1, 1997, the City adopted the provisions of GASB Statement 31, Accounting and Financial Reporting for Certain Investments and External Investments Pools, as amended by GASB 72, which requires that governmental entities, including governmental external investment pools, report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred.

The fair value of pooled investments is determined annually and is based on current market prices received from the City’s securities custodian. The Local Agency Investment Fund (LAIF) is required to invest in accordance with State statutes.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Investment Policies (Continued)
The City has developed a formal investment policy that is more restrictive than the State of California Government Code. The policy is adopted annually by the City Council.

K. Receivables and Payables
Interfund transactions are reflected as either: loans, services, reimbursements or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the governmentwide financial statements as “internal balances.” Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

Loans receivable in the governmental funds include the Affordable Housing Fund, Community Development Block Grant loans, Home Investment Partnership loans, Water fund loans and Employee Mortgages.

All accounts receivables are shown net of an allowance for uncollectible amounts, including water, wastewater, airport waterfront, solid waste, golf and parking. The allowance is estimated based on historical collections.

L. Inventories and Prepaid Assets
Inventories are stated at cost (first-in, first-out basis) and lower of average cost or market for proprietary funds. Governmental fund inventories are recorded as expenditures when consumed rather than when purchased. Proprietary fund inventories consist primarily of materials and supplies held for consumption. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in government-wide and fund financial statements.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Capital Assets
Capital assets which include land, buildings, improvements to buildings, improvements other than buildings, equipment, construction in progress, and infrastructure (e.g., roads, bridges, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide basic financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of one year and an initial individual cost of $25,000 or more for equipment and other improvements, $100,000 or more for building improvements and infrastructure, and all buildings, regardless of cost. Such assets are recorded at historical cost or estimated historical cost if actual cost is not available. Donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in results of operations. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Capital assets (except land, works of art and construction in progress) of the primary government are depreciated using the straight-line method using the estimated useful lives listed below.

Buildings 40 to 50 Years
Building Improvements 40 to 50 Years
Improvements other than Buildings 25 to 50 Years
Equipment 5 to 20 Years
Infrastructure (Except for the Maintained
Pavement Subsystem) 10 to 100 Years
Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

Subscription-Based Information Technology Arrangements (SBITA) assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term. SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Capital Assets (Continued)
The City has networks of infrastructure assets such as roads, water and wastewater treatment plants, drainage systems and sidewalks. The streets pavement subsystem of the road network is reported using the modified approach. The City has established a pavement condition assessment process. Approximately one-third of the entire subsystem is assessed on a rotating basis every two years so that the entire street network is inspected every six years. Each road segment is inspected and the Pavement Condition Index (PCI) value from zero to one hundred (0-100) is calculated for each road segment. PCI’s of 71 to 100 are considered “Good/Excellent,” PCI’s from 51 to 70 are considered “At Risk,” PCI’s from 25 to 50 are considered “Poor,” and PCI’s from 0 to 24 are considered “Very Poor/Failed.” Accordingly, depreciation is not reported for this subsystem and all costs, except for betterments and major improvements made to the subsystem, are expensed rather than capitalized.

N. Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63 and GASB Statement No. 65, the City recognizes deferred outflows and inflows of resources. A deferred outflow of resources represents a consumption of nets assets that applies to future periods. A deferred inflow of resources represents an acquisition of net assets that applies to future periods. Refer to Note 10 and Note 4 for a detailed listing of the deferred outflows and deferred inflows of resources the City has recognized.

O. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. For fire safety employees the value of the sick pay benefit is converted to additional years of service for purposes of calculating retirement benefits provided by the Public Employees Retirement System (PERS) and the employee is, therefore, compensated through an increased retirement benefit. All other employees upon retirement and with a minimum of 500 hours of accumulated sick pay benefits may elect to have an annuity or the cash value of an annuity for the value of those accumulated hours, calculated based on comparable actuarial assumptions used by PERS.

Governmental funds recognize the cost of vacation and sick pay benefits when payments are made to employees. The City has determined that 90% of the liability for compensated absences in both the governmental activities and the business-type activities at June 30, 2023, is deemed current and expected to be paid within the next 12 months with current financial resources.

The compensated absences for governmental funds will generally be liquidated through the general fund. The balances in the proprietary funds will generally be liquidated through the individual funds.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, and gains and losses on refunding, are deferred and amortized over the life of the bonds using the bondsoutstanding method, which approximates the effective interest method.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs during the current period. The proceeds of long-term debt issued are reported as “other financing sources.” Bonds payable are reported net of the applicable bond premium or discount and gains and losses on refunding. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Premiums received on debt issuances are reported as “other financing sources” while discounts are reported as “other financing uses.”
Q. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office and are in accordance with the implementation of GASB Statement No, 68. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’s website under Forms and Publications.

R. Other Postemployment Benefits
For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the City’s plan, have been determined by an independent actuary in accordance with GASB Statement No. 75.

S. Restricted Assets
The City has funds held by trustees or fiscal agents pledged to the payment or security of bonds and certificates of participation and are classified as restricted assets on the balance sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. The California Government Code provides that these funds, in absence of specific statutory provisions governing the issuance of bonds or certificates, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments the trustees or fiscal agents may make.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) T. Allocated Costs Policy
Expenses reported for functional activities include allocated indirect expenses pursuant to a cost allocation plan.

U. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

NOTE 2 DEPOSITS AND INVESTMENTS
Cash and investments as of June 30, 2023, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 334,521,684 $
Cash and Investments with Fiscal Agents 3,383,657
Fiduciary Funds:

Cash and Investments 548,405
Total Cash and Investments 338,453,746 $
Cash on Hand $ 51,035
Demand Deposit Accounts with Financial Institutions 13,837,627 Investments 324,565,084
Total Cash and Investments $ 338,453,746

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NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED)
All of the City’s deposits, except certain cash balances held by fiscal agents, are entirely insured or collateralized.

Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by trustees/fiscal agents that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum Maximum
Maximum Percent of Investment
Authorized Investment Type Maturity Portfolio* in One Issuer Local Agency Bonds 5 Years None None
U.S. Treasury Obligations 5 Years None None
U.S. Agency Securities 5 Years None None
State of California/Local Agency Obligations 5 Years None None Banker’s Acceptances 180 Days 40% 10%
Commercial Paper 270 Days 25% 10%
Negotiable Certificates of Deposit 5 Years 15% 3%
Repurchase Agreements 1 Year None None
Reverse Repurchase Agreements 92 Days 20% None
Medium-Term Notes 5 Years 30% 5%
Supranational Obligations 5 Years 30% None
Public Bank Obligations 5 Years None None
U.S. Government Money Market Funds N/A 20% 10%
Bank/Time Deposits/Non-Negotiable CDs 5 Years None None State Investment Pool (LAIF) N/A $75 million* N/A
* Excluding amounts held by trustees/fiscal agents that are not subject to California Government Code restrictions.

Investments Authorized by Debt Agreements
Investment of debt proceeds held by trustees/fiscal agents are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by trustees/fiscal agents. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

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NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements (Continued)
Maximum Maximum
Maximum Percent of Investment
Authorized Investment Type Maturity Portfolio in One Issuer U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker’s Acceptances 180 Days None None
Commercial Paper 270 Days None None
Money Market Mutual Funds N/A None None
Investment Contracts 30 Years None None
State Investment Pool (LAIF) N/A None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment is, the greater the sensitivity its fair value will be to changes in market interest rates. In accordance with its investment policy, the City manages its exposure to declines in fair value by limiting the weighted average maturity of the overall investment portfolio to 2½ years. In addition, the City employs a “buy and hold” investment strategy whereby investments are held to maturity at which time the investment is redeemed at par. This strategy limits the City’s exposure to declines in fair value to unforeseen emergencies when the need for cash beyond that which is planned and anticipated may arise.

Portfolio diversification is also employed as a way to control risk, including those associated with market changes or issuer default. To control market price risks, volatile investments are avoided, and to control risks of illiquidity, a minimum of 10% of the total portfolio is held in highly marketable U.S. Treasury Bills and Notes and/or the State of California Local Agency Investment Fund (LAIF) and/or Money Market Funds and/or securities maturing within 90 days.

WeightedAverage
Authorized Investment Type Fair Value Maturity
U.S. Treasury Notes 53,692,350 $ .3 Years
U.S. Agency Securities 169,060,050 1.2 Years
Corporate Medium Term Notes 10,513,050 .0 Years
Supranational Obligations 14,053,840 .1 Years
State Investment Pool (LAIF) 73,862,137 N/A
Held by Trustees/Fiscal Agents:

Money Market Fund 2,374,132 N/A
Investment Contracts 1,009,525 N/A
Total 324,565,084 $

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NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs.

United States Treasury Notes, United States Government – Sponsored Agency securities, corporate medium-term notes, and negotiable certificates of deposit are classified in Level 2 of the fair value hierarchy and are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

Investment Type June 30, 2023 Level 1 Level 2 Level 3
U.S. Treasury Notes $ 53,692,350 $ - $ 53,692,350 $ -
U.S. Agency Securities 169,060,050 - 169,060,050 -
Corporate Medium-Term Notes 10,513,050 - 10,513,050 -
Supranational Obligations 14,053,840 - 14,053,840 -
Total Investments at Fair Value 247,319,290 $ - $ 247,319,290 $ - Investments at Amortized Cost
Held by Trustees/Fiscal Agents:

Money Market Funds 2,374,132
Investment Contracts 1,009,525
Subtotal 3,383,657
Investments not Subject to Hierarchy
State Investment Pool (LAIF) 73,862,137
Total Investments $ 324,565,084

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NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as reported by Standard & Poor’s or Moody’s, as of yearend for each investment type:

Fair Value Min. Legal Not Required
Investment Type of Investment Rating To be Rated AAA/Aaa AA+ AA A+ Unrated U.S. Treasury Notes 53,692,350 $ N/A 53,692,350 $ - $ $ - $ - $ - $ - U.S. Agency Securities 169,060,050 N/A - 169,060,050 - - - - Corporate Medium-Term Notes 10,513,050 A - 1,994,100 4,628,110 - 3,890,840 - Supranational Obligations 14,053,840 N/A - 14,053,840 - - - - Local Agency Investment Pool (LAIF) 73,862,137 N/A - - - - - 73,862,137 Held by Trustees/Fiscal Agents:

Money Market 2,374,132 N/A - 2,374,132 - - - -
Investment Contracts 1,009,525 N/A - - - - - 1,009,525
Total $ 324,565,084 $ 53,692,350 $ 187,482,122 $ 4,628,110 $ 3,890,840 - $ $ 74,871,662 Rating as of Year-End
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of total City’s investments are as follows:

Percent

22.0%

13.5%
Federal Home Loan Mortgage Corp. Government Sponsored 32,911,370 10.1% Issuer
Federal Home Loan Bank
Federal Farm Credit Bank Government Sponsored 43,807,190 Investment Type
Government Sponsored
Reported Amount
$ 71,371,530
Disclosure Risk Relating to Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

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NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Disclosure Risk Relating to Custodial Credit Risk (Continued) GASB Statement No. 40 requires that the following disclosure be made with respect to custodial credit risks relating to deposits and investments: none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts. As of June 30, 2023, the deposits were collateralized in accordance with Section 53652 of the California Government Code by the pledging financial institution in the City’s name.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s prorata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

NOTE 3 UNEARNED REVENUE
Under both the accrual and modified accrual basis of accounting, revenue may be recognized only when earned. Therefore, the government-wide statement of net position, as well as governmental and proprietary funds, defers revenue recognition in connection with resources that have been received as of year-end, but not yet earned. Assets recognized in connection with a transaction before the earnings process is complete are offset by a corresponding liability for unearned revenue.

At June 30, 2023, the various components of unearned revenue reported are as follows:

Unearned
Governmental Funds:

General Fund:

Deferred Business License Tax $ 1,404,000
Advance on Library Grant Funding 3,951,550
Prepaid Parks and Recreation Fees 2,300,315
Subtotal 7,655,865
Other Governmental Funds:

Miscellaneous Grants Fund:

Advance on Library Grant Funding 884,187
Advance on Police Grant Funding 230,872
FEMA Reimbursement Fund:

Advance on FEMA Grant Funding 21,584
Subtotal 1,136,643
Total Governmental Funds $ 8,792,508

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NOTE 3 UNEARNED REVENUE (CONTINUED)
Unearned
Business-Type Activities:

Water Fund:

Joint Venture Agreement 3,286,442 $
Waterfront Fund:

Prepaid Slipholder Revenue 333,771
Solid Waste Fund:

Advance on State Grant Funding 151,250
Airport Fund:

Prepaid Rent Revenue 462,088
Clean Energy Fund:

Advance Energy Sales 21,060
Golf Course Fund:

Golf Gift Cards and Credit Vouchers 171,888
Total Business-Type Activities $ 4,426,499
NOTE 4 DEFERRED OUTFLOWS OF RESOURCES
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognized deferred outflows of resources in the entity-wide and proprietary fund statements. This item represents a consumption of net assets that applies to future periods. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities.

Deferred outflows of resources balances as reported on the statement of net position for the year ended June 30, 2023, were as follows:

Balance
June 30, 2023
Governmental Activities
Deferred Pension-Related Items $ 109,853,507
Deferred OPEB-Related Items 11,258,776
Total $ 121,112,283
Business-Type Activities
Deferred Loss on Refunding - 2013 Water Certificates of Participation $ 259,585 Deferred Loss on Refunding - 2014 Waterfront Refunding Revenue Bonds 199,518 Deferred Loss on Refunding - 2016 Wastewater Revenue Refunding Bonds 47,759 Deferred Loss on Refunding - 2019 Airport Revenue Refunding Bonds 522,272 Deferred Pension-Related Items 22,420,393
Total $ 23,449,527

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JUNE 30, 2023
(70)
NOTE 4 DEFERRED OUTFLOWS OF RESOURCES (CONTINUED)
Gains and losses related to changes in net pension liability and total OPEB liability are recognized systematically over time. Amounts are first recognized in pension and OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pension or OPEB and are to be recognized in future pension and OPEB expense. The recognition period differs based on the source of the gain or loss. For the net difference between the projected and actual earnings on plan investments it is five years. All other amounts are recognized over the expected average remaining service lifetime.

A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

NOTE 5 CAPITAL ASSETS
Governmental Activities
Capital asset activity for the year ended June 30, 2023, was as follows:

Beginning Transfers/ Ending
Balance Remeasurements/ Balance
June 30, 2022 Increases Reclassifications Decreases June 30, 2023 Governmental Activities
Nondepreciating Capital Assets:

Construction in Progress 27,485,193 $ 19,428,237 $ $ (8,795,291) $ - $ 38,118,139 Art and Historical Treasures 1,758,893 - - 1,758,893 -
Land 51,160,364 - - 51,160,364 -
Streets 160,101,178 - - 160,101,178 -
Total Nondepreciating
Capital Assets 240,505,628 19,428,237 (8,795,291) 251,138,574 - Depreciating Capital Assets:

Buildings 26,367,192 4,202,400 - 30,569,592 -
Building Improvements 52,818,538 - - 52,818,538 -
Improvements Other than Buildings 83,739,427 144,000 2,587,496 - 86,470,923 Equipment 48,241,078 911,837 4,905,749 (895,179) 53,163,485 Infrastructure 264,043,074 454,895 1,302,046 - 265,800,015 Right to Use Assets - Subscriptions 2,870,574 - - 2,870,574 - Right to Use Assets - Leases 2,306,320 1,383,398 (692,018) - 2,997,700 Total Depreciating Capital Assets 477,515,629 9,967,104 8,103,273 (895,179) 494,690,827 Less Accumulated Depreciation:

Buildings 16,954,301 448,498 - 17,402,799 -
Building Improvements 10,530,087 1,191,342 - 11,721,429 - Improvements Other than Buildings 32,086,672 2,640,097 - 34,726,769 - Equipment 37,077,832 2,793,779 ( - 872,190) 38,999,421
Infrastructure 100,816,407 4,736,996 - - 105,553,403
Right to Use Assets - Subscriptions - 888,659 - - 888,659 Right to Use Assets - Leases 370,962 423,090 - - 794,052 Total Accumulated Depreciation 197,836,261 13,122,461 - (872,190) 210,086,532 Total Capital Assets
Being Depreciated, Net 279,679,368 (3,155,357) 8,103,273 (22,989) 284,604,295 Governmental Activities
Capital Assets, Net $ 520,184,996 $ 16,272,880 $ (692,018) $ (22,989) $ 535,742,869

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(71)
NOTE 5 CAPITAL ASSETS (CONTINUED)
Governmental Activities (Continued)
Depreciation expense was charged to functions/programs of the governmental activities as follows:

Governmental Activities:

Administration 4,075,844 $
Public Safety 558,521
Public Works 6,026,144
Community Services 1,623,113
Community Development 838,839
Total Depreciation Expense - Governmental Activities $ 13,122,461 Business-Type Activities
Beginning Ending
Balance Transfers/ Balance
June 30, 2022 Increases Reclassifications Decreases June 30, 2023 Business-Type Activities
Nondepreciating Capital Assets:

Land 24,944,374 $ - $ $ - $ - $ 24,944,374
Construction in Progress 22,699,195 17,581,938 (217,367) (46,711) 40,017,055 Total Nondepreciating
Capital Assets 47,643,569 17,581,938 (217,367) (46,711) 64,961,429 Depreciating Capital Assets:

Buildings 136,167,323 - - 136,167,323 -
Building Improvements 13,501,924 131,440 - - 13,633,364 Improvements Other than Buildings 466,107,932 663,711 - 466,771,643 - Equipment 61,535,380 327,272 217,367 - 62,080,019
Underground Piping 231,936,477 6,329,513 - 238,265,990 - Infrastructure 193,683,396 - - 193,683,396 -
Right to Use Assets - Subscriptions 1,365,195 - - - 1,365,195 Right to Use Assets - Leases 222,042 1,057,171 - - 1,279,213 Total Depreciating Capital Assets 1,103,154,474 9,874,302 217,367 1,113,246,143 - Less Accumulated Depreciation:

Buildings 52,041,524 2,285,538 - - 54,327,062
Building Improvements 5,879,322 305,998 - - 6,185,320
Improvements Other than Buildings 284,527,924 9,710,997 - 294,238,921 - Equipment 49,044,625 2,351,048 - - 51,395,673
Underground Piping 147,694,407 5,448,382 - 153,142,789 - Infrastructure 32,897,805 4,655,018 - - 37,552,823
Right to Use Assets - Subscriptions - 300,439 - - 300,439 Right to Use Assets - Leases 60,755 116,850 - - 177,605 Total Accumulated Depreciation 572,146,362 25,174,270 - 597,320,632 - Total Capital Assets
Being Depreciated, Net 531,008,112 (15,299,968) 217,367 51 - 5,925,511 Business-Type Activities
Capital Assets, Net $ 578,651,681 $ 2,281,970 $ - $ (46,711) $ 580,886,940

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(72)
NOTE 5 CAPITAL ASSETS (CONTINUED)
Business-Type Activities (Continued)
Depreciation expense was charged to functions/programs of the business-type activities as follows:

Business-Type Activities:

Water 10,122,972 $
Wastewater 5,227,903
Airport 6,759,878
Waterfront 1,587,447
Solid Waste 24,149
Downtown Parking 1,198,316
Golf 253,605
Total Depreciation Expense - Business-Type Activities $ 25,174,270 NOTE 6 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of June 30, 2023, is as follows:

The interfund balances at June 30, 2023, are generally short-term loans to cover temporary cash deficits in various funds.

Due to/from Other Funds
Receivable Fund Payable Fund Amount
General Fund Street Grant Capital Projects Fund $ 10,526,887 General Fund Other Governmental Funds 3,084,727
General Fund Internal Service Funds 1,428,950
Total $ 15,040,564
Advances to/from Other Funds
Receivable Fund Payable Fund Amount
General Fund Clean Energy Enterprise Fund $ 2,096,996
Internal Service Fund Other Governmental Funds 1,600,005 Total $ 3,697,001
The General Fund advanced money to the Clean Energy Enterprise Fund. This advance, totaling $2,096,996 at June 30, 2023, was for the purpose of financing the start-up costs for the Santa Barbara Clean Energy program. The advance bears interest at the rate of 1.65%.

Repayments on this advance started in Fiscal Year 2023 and are to be repaid annually over a five year period.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(73)
NOTE 6 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) The Internal Service Fund (Vehicle Capital Fund) advanced money to the Other Governmental Funds (Measure C Capital Projects Fund). This advance, totaling $1,600,005 at June 30, 2023, was for the purpose of financing the Cabrillo Pavilion project. The advance bears interest at 2% and has payments due annually.

A summary of interfund transfers during the year follows:

Street Other Water Wastewater Solid Waste Other
General Grant Capital Governmental Enterprise Enterprise Enterprise Enterprise Internal Transfers Out Fund Fund Funds Fund Fund Fund Funds Service Total Governmental Funds:

General Fund $ - $ 29,896,055 - $ $ - $ 172 $ 1,068,605 - $ $ 5,137,946 $ 36,102,778 Other Govt Funds 617,954 160,186 8,508,373 - - - - 81,082 9,367,595 Enterprise Funds:

Water - - - - - - - 7,483 7,483
Wastewater - - - - - - - 5,107 5,107
Airport - - - - - - - 30,422 30,422
Solid Waste 50,000 - - - - - - 973 50,973
Other Enterprise Funds - - - - - - - 2,337 2,337
Internal Service Funds - - 67,791 - 67,791 67,791 - 7,586 210,959 Total Transfers $ 667,954 $ 160,186 $ 38,404,428 $ 67,791 $ 67,963 $ 67,791 $ 1,068,605 $ 5,272,936 $ 45,777,654 Transfers In
The most significant interfund transfers related to the following:

1. Transfers from the General Fund to Other Governmental Funds totaled $29.9 million.

These were primarily due to $28.4 million to the Measure C Capital fund for a variety of capital projects throughout the city. Notable projects included various overlay improvements, costs related to the new police station, and central library renovations. In addition, Measure C funds were spent on the State Street Master Plan.

2. Transfers from the General Fund to the Enterprise Funds totaled $1.07 million. These transfers largely supported Downtown marketing ($0.31 million), Downtown Ambassador Program ($0.30 million), and State Street Deep Cleaning and Lighting project ($0.35 million).

3. Transfers from the General Fund to the Internal Service Funds totaled $5.14 million.

The significant transfers included $4 million to the Self Insurance Fund to help stabilize reserves and fund litigation settlement costs, and $0.42 million for Constituent Relationship Management Software.

4. Transfers from the Other Governmental Funds to the General Fund totaled $0.62 million.

These transfers included $0.38 million from the Streets Sweeping Fund for Police Department Street Sweeping Enforcements efforts, and $0.19 million from the Traffic Safety Fund for Police Department traffic safety costs.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(74)
NOTE 6 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED)

5. Transfers between Other Governmental Funds totaled $8.7 million and were primarily comprised of the following capital outlay transfers:
a. $2.12 million from the Streets Fund to the Street Capital Improvement Fund. b. $4.33 million from the Measure A Fund to the Measure A Capital Improvements Fund for roadwork.
c. $1.65 million from the Creeks Restoration Fund to the Creek Restoration Capital Improvement Fund for various creek restoration projects. d. $0.20 million from Creeks Restoration Fund to the Street Sweeping Fund for street sweeping operations.

NOTE 7 LONG-TERM DEBT
The City has issued debt in the business-type activities to provide funds for the acquisition and construction of major capital facilities. The types of debt include (1) Revenue Bonds where the City pledges income derived from a business-type activity to pay debt service, (2) certificates of participation that pledge general government revenue to pay base rent payments to the Santa Barbara Public Financing Authority for real property and improvements owned by the City, and (3) loans from other governmental agencies. Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the totals for governmental activities. The claims liability item is generally liquidated by the self-insurance internal service fund (see Note 12).

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(75)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Long-term liability activity for the year ended June 30, 2023, is as follows:

Beginning Ending Amount Due
Balance Balance Amount Due In More Than
July 1, 2022 Additions Deletions June 30, 2023 in One Year One Year Governmental Activities
Other Long-Term Liabilities:

Compensated Absences $ 8,999,229 $ 10,295,606 $ 9,585,840 $ 9,708,995 $ 8,738,095 $ 970,900 Financing Agreement 3,793,375 - 518,364 3,275,011 530,628 2,744,383 Claims Liability 18,323,786 8,607,920 5,795,706 21,136,000 5,364,506 15,771,494 Governmental Activity:

Long-Term Liabilities 31,116,390 18,903,526 15,899,910 34,120,006 14,633,229 19,486,777 Business-Type Activities
Direct Borrowings:

Loans 122,785,360 - 7,990,756 114,794,604 8,170,947 106,623,657 Other Debt:

Revenue Bonds 38,215,324 - 2,967,565 35,247,759 3,100,104 32,147,655 Certificates of Participation 9,095,000 - 1,790,000 7,305,000 1,865,000 5,440,000 Unamortized Debt Premium 5,263,038 - 538,739 4,724,299 - 4,724,299 Unamortized Debt Discount (43,493) - (8,700) (34,793) - (34,793) Subtotal 175,315,229 - 13,278,360 162,036,869 13,136,051 148,900,818 Other Long-Term Liabilities:

Compensated Absences 2,908,649 3,462,638 3,098,248 3,273,039 2,939,505 333,534 Business-Type Activity:

Long-Term Liabilities 178,223,878 3,462,638 16,376,608 165,309,908 16,075,556 149,234,352 Total Debt Activity $ 209,340,268 $ 22,366,164 $ 32,276,518 $ 199,429,914 $ 30,708,785 $ 168,721,129 Governmental Activities
On December 17, 2021, the City entered into a financing agreement for fire equipment for $3,888,745 at a rate of 1.2977% and matures in June of 2029.

The annual requirements to amortize all long-term debt outstanding as of June 30, 2023, are as follows:

Fiscal Year Funding Principal Interest Total
2024 $ 530,628 $ 75,744 $ 606,372
2025 543,217 63,156 606,373
2026 556,139 50,232 606,371
2027 569,404 36,966 606,370
2028 583,024 23,347 606,371
2029 492,599 9,365 501,964
Total $ 3,275,011 $ 258,810 $ 3,533,821
Governmental Activities

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(76)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Business-Type Activities
A description of long-term obligations outstanding at June 30, 2023 by category follows:

Revenue Bonds
Wastewater Fund
$10,580,000 - 2016 Sewer Revenue Refunding Bonds. Bonds were issued to provide funds in order to refund the outstanding 2004A Sewer Revenue Bonds which were used to finance the acquisition of certain capital improvements to the Wastewater system. Remaining annual principal installments range from $845,000 to $1,120,000 through May 15, 2028. Interest rates range from 4.0% to 5.0% payable semiannually.
$ 5,115,000
Waterfront Fund
$12,334,392 - Waterfront Refunding Revenue Bonds, Series 2014. Bonds were issued to provide funds in order to refund the outstanding City of Santa Barbara Waterfront Revenue Refunding Certificates of Participation, Series 2002 which were used to finance capital improvements at the waterfront. Remaining annual principal installments range from $345,000 to $1,092,700 through October 1, 2027. The interest rate is 3.53%. 4,522,759 Airport Fund
$29,825,000 - 2019 Airport Revenue Refunding Bonds. Bonds were issued to provide funds in order to refund the outstanding 2009 Airport Revenue Bonds which were used to finance the construction a new passenger terminal building and related parking and roadway improvements at the Santa Barbara Municipal Airport. Annual principal installments range from $1,075,000 to $2,345,000 through April 1, 2038. Interest rates range from 4.0% to 5.0% payable semiannually. 25,610,000
Total Revenue Bonds 35,247,759
Certificates of Participation
Water Fund
$22,680,000 - 2013 Refunding Water Certificates of Participation. Certificates issued to provide funds to refund the outstanding City of Santa Barbara 2002 Certificates, which were used to finance capital improvements to the water distribution system. Certificates were also used to refund a California Department of Health Services Safe Drinking Water State Revolving Fund loan, which was used to finance construction of a project that enabled the City to meet safe drinking water standards. Remaining annual principal installments range from $1,425,000 to $2,055,000 through October 1, 2026. Interest rates range from 3.0% to 5.0% payable semiannually. 7,305,000
Total Certificates of Participation 7,305,000

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(77)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Business-Type Activities (Continued)
Loans Payable
Water Fund
$17,900,849 - California Department of Health Services Safe Drinking Water State Revolving Fund Loan. Funds used to assist in financing construction of a project which will enable the City to meet safe drinking water standards. Due in semiannual payments of $572,123. Interest is

2.5132% per annum. The final payment is due July 1, 2025. $ 2,218,367 $26,614,040 California Department of Health Services Safe Drinking Water State Revolving Fund Loan. Funds used to assist in financing construction of a project which will enable the City to meet safe drinking water standards. Due in semiannual payments of $849,840. Interest is

2.5017% per annum. The final payment is due July 1, 2035. 17,525,550 $80,000,000 California State Water Resources Control Board Loan. Funds used to assist in financing the desalination plant reactivation project. Due in semiannual payments of $2,104,805. Interest is 1.663% per annum. The final payment is due July 1, 2038. 55,680,543 Wastewater Fund
$1,636,487 - California State Water Resources Control Board Loan. Funds used to assist in financing a biofuel conversion project to increase energy generated at the El Estero Wastewater Treatment Plant. Due in 20 annual payments of $98,161. Interest is 1.8% per annum. The final payment is due December 31, 2036. 1,205,261
$5,200,000 - California State Water Resources Control Board Loan. Funds used to assist in financing the replacement design, modifications to the washer compactor area, replacement of water compactor units, and a study of the electrical generators use for new mechanical screens and conveyance. Due in 20 annual payments of $341,981. Interest is 2.6% per annum. The final payment is due July 31, 2033. 3,235,490
$31,388,033 - California State Water Resources Control Board Loan. Funds used to assist in financing the upgrade to the aeration system and improve the secondary treatment process at the El Estero Wastewater Treatment Plant. Due in 20 annual payments of $1,953,145. The final payment is due March 1, 2039. Interest is 1.9% per annum. 26,730,520 Airport Fund
$2,450,339 - State Department of Transportation Loan. Funds used to finance capital improvements at the airport. Due in 17 annual payments of $218,714. Interest is 5.0843% per annum. The final payment is due May 30, 2024. 208,132
Waterfront Fund
$14,501,000 - State Department of Boating and Waterways Loan. Funds used to finance capital improvements at the marina. Interest is 4.5% per annum. Due in annual payments of $889,263.

The final payment is due August 1, 2037. 7,990,741
Total Loans Payable 114,794,604
Total Business-Type Activities $ 157,347,363

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(78)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Business-Type Activities (Continued)
The annual requirements to amortize all long-term debt outstanding as of June 30, 2023, are as follows:

Principal Payments
Revenue Certificates of Direct Borrowings
Fiscal Year Funding Bonds Participation Other Loans Total 2024 3,100,104 $ 1,865,000 $ 8,170,947 $ 13,136,051 $
2025 3,248,721 1,960,000 8,136,106 13,344,827
2026 3,396,259 2,055,000 7,164,094 12,615,353
2027 3,542,675 1,425,000 7,317,845 12,285,520
2028 2,905,000 - 7,475,352 10,380,352
2029-2033 8,370,000 - 39,707,640 48,077,640
2034-2038 10,685,000 - 34,905,892 45,590,892
2039 - - 1,916,728 1,916,728
Total Principal $ 35,247,759 $ 7,305,000 $ 114,794,604 $ 157,347,363 Fiscal Year Funding Interest Payments
2024 $ 1,665,172 $ 269,575 $ 2,383,853 $ 4,318,600
2025 1,524,498 173,950 2,199,981 3,898,429
2026 1,376,897 83,850 2,027,747 3,488,494
2027 1,222,407 21,375 1,873,996 3,117,778
2028 1,075,639 - 1,716,489 2,792,128
2029-2033 3,967,500 - 6,081,715 10,049,215
2034-2038 1,654,500 - 1,961,519 3,616,019
2039 - - 36,418 36,418
Total Interest 12,486,613 548,750 18,281,718 31,317,081 Total Debt $ 47,734,372 $ 7,853,750 $ 133,076,322 $ 188,664,444 Business-Type Activities
Revenue Bonds
Waterfront Refunding Revenue Bonds, Series 2014
On March 7, 2014, the City issued Waterfront Refunding Revenue Bonds, Series 2014 in the amount of $12,334,392 to refund the 2002 Waterfront Certificates of Participation.

Sewer Revenue Refunding Bonds, Series 2016
On December 21, 2016, the City issued Sewer Revenue Refunding Bonds, Series 2016 in the amount of $10,580,000 to refund the 2004 Sewer Revenue Bonds.

This debt issue is subject to a reserve requirement in conjunction with nonsubordinate (parity) debt issued by the City. The City is in compliance with the revenue rate covenant requiring net revenues of the wastewater system to be at least equal to 1.20 times the amount necessary to pay principal and interest on the bonds and all other parity bonds.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(79)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Business-Type Activities (Continued)
Revenue Bonds (Continued)
Airport Refunding Revenue Bonds, Series 2019
On April 1, 2019, the Santa Barbara Financing Authority (Authority) issued Refunding Revenue Bonds, Series 2019 in the amount of $29,825,000 to refund the 2009 Airport Revenue bonds.

The City and Authority entered into a Facility Lease agreement whereby the City pledges to make the necessary annual appropriations and make base rental payments equal to the annual debt service requirements. The remaining annual payments range between $2,460,500 to $2,472,750. The final payment is due April 1, 2038.

Certificates of Participation
Water Revenue Refunding Certificates of Participation, Series 2013 On May 22, 2013, the City issued Water Revenue Refunding Certificates of Participation, Series 2013 in the amount of $22,680,000 to refund the 2003 California Department of Health Services Safe Drinking Water Loan and Water Revenue Certificates of Participation, Series 2002.

This debt issue is subject to a reserve requirement in conjunction with nonsubordinate (parity) debt issued by the City. The City is in compliance with the revenue rate covenant requiring net revenues of the water system to be at least equal to 1.25 times the amount necessary to pay principal and interest on the bonds and all other parity bonds.

NOTE 8 CONTINGENCIES AND COMMITMENTS
Litigation and Claims
The City is presently involved in matters of litigation and claims that have arisen in the normal course of conducting City business. City management believes that, based upon consultation with the City Attorney, these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City.

Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. Grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(80)
NOTE 8 CONTINGENCIES AND COMMITTMENTS (CONTINUED)
Encumbrances
The City uses encumbrances to control expenditure commitments for the year and to enhance cash management. Encumbrances represent commitments related to contracts not yet performed and purchase orders not yet filled (executory contracts; and open purchase orders). Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year-end are not accounted for as expenditures and liabilities but, rather, as restricted or committed governmental fund balance. As of June 30, 2023, total governmental fund encumbrance balances for the City are as follows:

General Fund $ 2,807,259
Other Governmental Funds 37,984,115
Total Governmental Funds $ 40,791,374
NOTE 9 RETIREMENT COMMITMENTS
The following is a summary of pension related items for the year ended June 30, 2023:

Deferred Deferred Net Pension Pension
Outflows Inflows Liability Expense
Miscellaneous 66,191,572 $ $ (686,918) $ 202,788,447 $ 26,150,792 Safety Police 30,935,918 (2,981,845) 110,410,122 13,147,277 Safety Fire 35,120,178 (5,413,244) 87,075,506 (12,082,005) Safety Retirement 26,232 - 99,855 14,695
Total $ 132,273,900 $ (9,082,007) $ 400,373,930 $ 27,230,759 Pension liabilities are liquidated from the related employees’ home program, with the majority funded out of the General Fund.

A. Public Employees’ Retirement System (CalPERS)

1. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police) and Miscellaneous (all other) Plans, agent multipleemployer defined benefit pension plans and the City’s Safety (fire) Plan, a cost sharing defined benefit plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and Local Government resolution.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(81)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

1. General Information about the Pension Plans (Continued) Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least five years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five years of service.

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related.

Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. Pursuant to PEPRA, the Miscellaneous and Safety (Police and Fire) “Classic” plans are closed to new entrants as of January 1, 2013.

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

Miscellaneous Miscellaneous Safety Safety
Plan Plan Police Plan Police Plan Safety Fire Safety Fire Hire Date Prior to April 1, After January 1, Prior to April 1, After January 1, Prior to January 1, After January 1, 2012 (Tier 1) 2013 (PEPRA) 2012 (Tier 1) 2013 (PEPRA) 2013 2013 (PEPRA) Benefit Formula 2.7% at 55 2% at 62 3% at 50 2.7% at 57 3% at 50 2.7% at 57 Benefit Vesting Schedule 5 Years of 5 Years of 5 Years of Credited Service Credited Service Credited Service
Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 and up 52 and up 50 and up 50 and up 50 and up 50 and up Monthly Benefits, as a Percent
of Eligible Compensation 2.0% - 2.7% 1.0% - 2.5% 3.00% 2.0% - 2.7% 3.00% 2.0% - 2.7% Required Employee
Contribution Rates 7.53% 6.75% 10.42% 12.00% 8.99% 13.75% Required Employer
Contribution Rates
Normal Cost Rate 11.320% 11.320% 21.380% 21.380% 25.640% 13.660% Payment of Unfunded Liability 18,582,644 $ $ - $ 7,996,211 $ - $6,291,198 $10,535

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(82)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

1. General Information about the Pension Plans (Continued) Employees Covered
At the measurement date ended June 30, 2022, the following employees were covered by the benefit terms for each Plan:

Miscellaneous Safety (Police)
Inactive Employees or Beneficiaries Currently
Receiving Benefits 1,189 282
Inactive Employees Entitled to But Not Yet
Receiving Benefits 1,023 79
Active Employees 768 122
Total 2,980 483
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’s annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. The City made contributions to the Miscellaneous, Safety (police) and Safety (fire) during the fiscal year ended June 30, 2023, of $26,711,721, $11,554,507, and $8,944,875, respectively.

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

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(83)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

2. Net Pension Liability (Continued)
Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Plan Safety Police Plan Safety Fire Plan
Valuation Date June 30, 2021 June 30, 2021 June 30, 2021 Measurement Date June 30, 2022 June 30, 2022 June 30, 2022 Actuarial Cost Method Entry-Age Normal Entry-Age Normal Entry-Age Normal Cost Method Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90% 6.90%
Inflation 2.30% 2.30% 2.30%
Projected Salary Increase (1) (1) (1)
Mortality Rate Table (2) (2) (2)
Post Retirement Benefit Increase (3) (3) (3)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. (3) The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% thereafter.

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

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(84)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

2. Net Pension Liability (Continued)
Long-Term Expected Rate of Return (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ -60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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

Assumed
Asset Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(85)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

2. Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.9%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Change in Assumptions
The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30% from the measurement date June 30, 2021 to June 30, 2022.

3. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan follows:

Miscellaneous Plan
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2021
(Measurement Date) $ 676,572,579 $ 567,579,647 $ 108,992,932 Changes in the Year:

Service Cost 12,049,649 - 12,049,649
Interest on the Total Pension Liability 47,202,721 - 47,202,721 Changes in Assumptions 20,839,306 - 20,839,306
Differences Between Actual and
Expected Experience (1,068,539) - (1,068,539)
Contribution - Employer - 23,992,213 (23,992,213)
Contribution - Employee - 4,643,550 (4,643,550)
Net Investment Income - (43,054,573) 43,054,573
Benefit Payments, Including Refunds
of Employee Contributions (36,541,549) (36,541,549) -
Administrative Expenses - (353,568) 353,568
Net Changes 42,481,588 (51,313,927) 93,795,515
Balance at June 30, 2022
(Measurement Date) $ 719,054,167 $ 516,265,720 $ 202,788,447 Increase (Decrease)

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(86)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

3. Changes in the Net Pension Liability (Continued)
Safety Police Plan
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2021
(Measurement Date) $ 308,983,168 $ 238,930,146 $ 70,053,022 Changes in the Year:

Service Cost 5,268,330 - 5,268,330
Interest on the Total Pension Liability 21,422,699 - 21,422,699 Changes in Assumptions 11,882,412 - 11,882,412
Differences Between Actual and
Expected Experience (4,278,299) - (4,278,299)
Contribution - Employer - 10,513,730 (10,513,730)
Contribution - Employee - 1,684,704 (1,684,704)
Net Investment Income - (18,111,553) 18,111,553
Benefit Payments, Including Refunds
of Employee Contributions (17,495,066) (17,495,066) -
Administrative Expenses - (148,839) 148,839
Net Changes 16,800,076 (23,557,024) 40,357,100
Balance at June 30, 2022
(Measurement Date) $ 325,783,244 $ 215,373,122 $ 110,410,122 Increase (Decrease)
Proportionate Share of Net Pension Liability
As of June 30, 2023, the City reported net pension liabilities for its proportionate shares of the net pension liability for the Safety Fire Plan as follows:

Proportionate
Share of
Net Pension
Liability
Safety Fire Plan $ 87,075,506

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(87)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

3. Changes in the Net Pension Liability (Continued)
Proportionate Share of Net Pension Liability (Continued) The City’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportionate share of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Safety Fire Plan as of June 30, 2021 and 2022 was as follows:

Safety Fire
Proportion - June 30, 2021 1.68426%
Proportion - June 30, 2022 1.26718%
Change - Increase (Decrease) -0.41708%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease Current Rate 1% Increase
Plan Type (5.90%) (6.90%) (7.90%)
Miscellaneous $ 297,501,218 $ 202,788,447 $ 124,702,410 Safety Police 154,638,311 110,410,122 74,297,566
Safety Fire 118,121,909 87,075,506 61,702,086
Total $ 570,261,438 $ 400,274,075 $ 260,702,062
Discount Rate
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(88)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

4. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2023, the City of Santa Barbara Miscellaneous, Safety Police and Safety Fire Plans recognized pension expense/(income) of $26,150,792, $13,147,277 and ($12,082,005) respectively. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date $ 26,711,721 $ -
Differences Between Actual and Expected Experience 384,562 (686,918) Changes of Assumptions 13,396,697 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 25,698,592 -
Total $ 66,191,572 $ (686,918)
Safety Police Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date $ 11,554,507 $ -
Differences Between Actual and Expected Experience 374,493 (2,981,845) Changes of Assumptions 8,281,681 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 10,725,237 -
Total $ 30,935,918 $ (2,981,845)

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(89)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

4. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Safety Fire Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date $ 8,944,875 $ -
Differences Between Actual and Expected Experience 3,603,739 (945,571) Changes of Assumptions 8,779,847 -
Changes in Proportion and Difference Between
Employer Contributions and Proportionate Share
of Contributions 41,277 (4,467,673)
Net Differences Between Projected and Actual
Earnings on Plan Investments 13,750,440 -
Total $ 35,120,178 $ (5,413,244)
$26,711,721 for Miscellaneous, $11,554,507 for Safety Police and $8,944,875 for Safety Fire are reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Plan Safety Police Plan Safety Fire Plan
Deferred Deferred Deferred
Outflows/Inflows Outflows/Inflows Outflows/Inflows
Year Ending June 30, of Resources of Resources of Resources 2024 11,448,718 $ 4,288,654 $ 5,730,308 $
2025 9,243,699 3,852,538 3,994,876
2026 1,721,325 1,376,627 2,648,932
2027 16,379,191 6,881,747 8,387,943

5. Payable to the Pension Plan
At June 30, 2023, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(90)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
B. City Safety Retirement Pension Plan

1. General Information about the Pension Plan
Plan Description
In addition to the CalPERS, the City provides an additional single-employer defined benefit pension plan. The Safety Retirement Plan was established to account for the accumulation of resources to be used for retirement benefits for those police and fire employees hired between May 1937 and May 1965, and who were disabled due to job related injuries. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 68.

Benefits Provided and Employees Covered
As of June 30, 2022 measurement date, a total of five (5) retirees (or beneficiaries) are receiving benefits from the Safety Retirement Pension Trust Fund.

2. Total Pension Liability
The total pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2022. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Measurement Date June 30, 2022
Valuation Date June 30, 2022
Discount Rate 3.54%
Salary Increases Not Assumed
Mortality rates were based on CalPERS 2000-2019 Experience Study. Mortality improvement Scale MP-2021 applied on a generational basis.

Discount Rate
The discount rate used to measure the total pension liability was 3.54% based on bond buyer 20-Bond General Obligation Index as of June 30, 2022.

Change in Assumption
The discount rate changed from 2.16% to 3.54%.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(91)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
B. City Safety Retirement Pension Plan (Continued)

3. Changes in Total Pension Liability
The changes in the total pension liability are as follows:

Total Pension
Liability
Balance at June 30, 2021 $ 111,392
Changes in the Year:

Interest on Total Pension Liability 2,123
Differences Between Actual and
Expected Experience 16,997
Changes in Assumptions (4,425)
Benefit Payments (26,232)
Net Changes (11,537)
Balance at June 30, 2022 $ 99,855
Sensitivity of the Total Pension Liability to Changes in the Discount Rate The following presents the total pension liability of the Plan, calculated using the discount rate of 3.54%, as well as what the total pension liability would be if it were calculated using a discount rate that is 1% lower (2.54%) or 1% higher (4.54%) than the current rate.

Current
1% Lower Discount Rate 1% Higher
Safety Fire Plan (2.54%) (3.54%) (4.54%)
Plan's Net Pension Liability/Assets $ 99,855 103,020 $ 96,891 $

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(92)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
B. City Safety Retirement Pension Plan (Continued)

3. Changes in Total Pension Liability (Continued)
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $14,695.

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

Deferred Deferred
Outflows of Inflows of
Resources Resources
Employer Benefit Payments Made After
the Measurement Date $ 26,232 $ -
Total $ 26,232 $ -
$26,232 reported as deferred outflows of resources related to employer benefit payments made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024.

C. Deferred Compensation Plan
The City offers two deferred compensation plans for regular employees and one for hourly employees created in accordance with Internal Revenue Code Section 457.

Under the terms of these plans, employees may defer amounts of income up to a maximum of $17,500 per year or 100% of includable compensation, whichever is less.

Amounts so deferred may be withdrawn or directed for future payment at separation of employment but may not be paid to the employee during employment with the City except for a catastrophic circumstance creating an undue and unforeseen financial hardship for the employee.

Effective January 1, 1999, Federal legislation (Small Business Job Protection Act of 1996) requires the Section 457 plan assets to be placed in trust for the exclusive use of the plan participants and their beneficiaries. The City’s deferred compensation administrator qualifies as the plan trustee to meet Federal requirements. Since the plan assets are no longer considered the property and rights of the City, such assets are no longer reflected in the accompanying basic financial statements.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(93)
NOTE 10 DEFERRED INFLOWS OF RESOURCES
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognized deferred inflows of resources in the entity- wide and proprietary fund statements. This item represents a consumption of net assets that applies to future periods. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities.

Under the modified accrual basis of accounting, it is not enough that revenue has been earned if it is to be recognized in the current period. Revenue must also be susceptible to accrual (i.e., measurable and available to finance expenditures of the current period).

Governmental funds report revenues not considered available to liquidate liabilities of the current period as deferred inflows of resources.

Gains and losses related to changes in net pension liability and total OPEB liability are recognized systematically over time. Amounts are first recognized in pension or OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pension or OPEB and are recognized in future pension and OPEB expense. The recognition period differs based on the source of the gain or loss. For the net difference between the projected and actual earnings on plan investments it is five years. All other amounts are recognized over the expected average remaining service lifetime. Lease related inflows are amortized on a straight line basis over the length of the lease agreement.

Deferred inflows of resources balances as reported on the statement of net position for the year ended June 30, 2023, were as follows:

Governmental Activities
Deferred Pension-Related Items 8,849,334 $
Deferred OPEB-Related Items 15,096,082
Deferred Lease-Related Items 4,290,117
Total $ 28,235,533
Business-Type Activities
Deferred Pension-Related Items 232,673 $
Deferred Lease-Related Items 31,262,485
Total 31,495,158 $

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(94)
NOTE 10 DEFERRED INFLOWS OF RESOURCES (CONTINUED)
Deferred inflows of resources balances as reported on the Governmental Funds Balance Sheet for the year ended June 30, 2023, were as follows:

Governmental Fund Financials
Major Government Funds
General Fund - Lease Related Items 3,948,649 $
General Fund - Unavailable Fire Department Grant Revenue 469,932 General Fund - Unavailable CalRecycle Grant Revenue 15,985 General Fund - Unavailable Administrative Citation Revenue 330,381 Street Grant Capital Fund - Unavailable Grant Revenue 8,571,915 Total $ 13,336,862
Nonmajor Governmental Funds
Streets Fund - Lease Related Items $ 341,468
Community Development Block Grant Fund -
Unavailable Grant Revenue 10,806
Misc. Grants Fund - Unavailable Grant Revenue 452,323
General Capital Improvements Fund -
Unavailable Grant Revenue 2,137
PLHA Fund - Unavailable Grant Revenue 652,689
FEMA Reimbursement Fund - Unavailable Grant Revenue 959,170 Total $ 2,418,593
NOTE 11 CLASSIFICATION OF NET POSITION
In the government-wide financial statements, net position are classified as the following:
 Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce this category.
 Restricted Net Position – This category presents all external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.  Unrestricted Net Position – This category represents the net position of the City, which are not restricted for any project or other purpose.

In the Fund financial statements, governmental funds report the following fund balance classifications:
 Nonspendable – Amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(95)
NOTE 11 CLASSIFICATION OF NET POSITION (CONTINUED)
 Restricted – Amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.  Committed – Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council of the City of Santa Barbara. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution by the City Council of the City of Santa Barbara.
 Assigned – Amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The City Administrator or Finance Director are authorized to assign amounts to a specific purpose as per the approved City Council Resolution No. 12-069.
 Unassigned – Residual amounts that have not been restricted, committed, or assigned to specific purposes.

The General Fund is the only fund that may report a positive unassigned fund balance.

However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned for those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted or unrestricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as needed.

The City’s general fund reserve policy consists of a Disaster Reserve of 15% of the general fund’s most recently adopted fiscal year operating budget and a Contingency Reserve of 10% of the general fund’s most recently adopted fiscal year operating budget. The use of the Disaster Reserve is limited to federal or state declared disasters and may only be used only after other available funds are exhausted, including the contingency reserve. The purpose of the Contingency reserve is to allow for the orderly implementation of a balancing strategy to address the fiscal impacts of unexpected events such as natural disasters, revenue impacts resulting from State actions or unfunded State mandates, unexpected loss of external funding from sources such as grants, unplanned loss of, or damage to, a City facility, mitigation of an emergency that poses a threat to public health and safety and adverse judicial actual that requires large cash payments to third parties.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(96)
NOTE 11 CLASSIFICATION OF NET POSITION (CONTINUED)
The components of the City’s fund balances at June 30, 2023, consist of the following:

Special Revenue Capital Projects
Fund Fund Other
General Affordable Street Grant Governmental Governmental Fund Housing Capital Fund Funds
Fund Balances
Nonspendable:

Prepaid Assets and Deposits $ 1,243,476 $ - $ - $ - 1,243,476 $ Loans Receivable 86,814 - - - 86,814
Advances to Other Funds 2,096,996 - - - 2,096,996
Restricted for:

Administration 33,780 - - - 33,780
Public Safety 167,198 - - 1,127,729 1,294,927
Public Works 12,326 - - 16,558,501 16,570,827
Community Services - - - 6,367,531 6,367,531
Community Development 2,387,706 - - 759,356 3,147,062
Capital Improvements - - - 4,761,511 4,761,511
Affordable Housing - 67,819,178 - - 67,819,178
Committed for:

Capital Improvements - - - 46,668,260 46,668,260
Contingencies 16,820,295 - - - 16,820,295
Disaster Contingency 25,230,442 - - - 25,230,442
Unassigned 7,684,231 - (7,872,257) (4,220,713) (4,408,739) Total Fund Balances 55,763,264 $ 67,819,178 $ (7,872,257) $ 72,022,175 $ 187,732,360 $ NOTE 12 SELF-INSURANCE FUND
The City is partially self-insured for workers’ compensation and general and automobile liability claims, and fully self-insured for unemployment claims. The City has been partially self-insured for workers’ compensation since 1974, and partially self-insured for general and automobile liability since 1978. There have been no significant changes in insurance coverage as compared to last year and settlements have not exceeded coverage in any of the past three fiscal years.

The City’s workers’ compensation program maintains a self-insured retention of $750,000.

The City purchases an excess insurance policy that provides statutory coverage limits for any loss that exceeds the City’s self-insured retention. The excess insurance coverage consists of a $5 million pooled layer above the City’s self-insured retention amount plus the use of commercial insurance above the pooled layer. Employers’ Liability coverage is also included within the limits of the $5 million pooled layer.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(97)
NOTE 12 SELF-INSURANCE FUND (CONTINUED)
The City’s general and automobile liability program maintains a self-insured retention of $1,000,000. Excess liability coverage is provided through a Joint Powers Agreement. The City joined the Authority of California Cities Excess Liability (ACCEL) in July 1986. ACCEL is a public entity risk sharing pool created for the purpose of pooling various public sector risks. ACCEL began its 37th year in July 2023 with membership totaling 13 cities. ACCEL was formed under the Joint Powers Agreement (JPA) provisions of State Law (Government Code Sections 990, 990.4, 990.8 and 65006515). In addition to the joint powers agreement, ACCEL is governed by bylaws, an investment policy, and a Memorandum of Coverage, adopted by the ACCEL members.

ACCEL now transfers most of its risk sharing exposures through the purchase of a series of commercial insurance policies underwritten by various carriers. ACCEL members have a $1 million self-insured retention. ACCEL pools the next $9 million of loss exposures, and commercial insurance carriers provide $44 million in coverage above that level. Thus, the City’s participation in ACCEL provides liability coverage of $55 million.

A Memorandum of Coverage acts as the instrument by which member cities are protected against covered losses above the self-insured retention (SIR). This document also serves as the manuscript form for which the commercial carriers provide coverage. Coverage includes comprehensive general and automobile liability protecting against bodily injury, property damage, public officials’ errors and omissions, personal injury, employment practices, as well as damages arising from owned, non-owned, and hired automobiles.

A Board of Directors (Board) consisting of one representative from each member city governs ACCEL. The Board controls all aspects of ACCEL policy including budgeting, finance, underwriting, and claims. ACCEL conducts annual financial, claims, and payroll audits, and an annual actuarial study. A retrospective rating is performed each year on the program year ended five years earlier. The retrospective rating determines each member’s share of losses and potential deposit return. ACCEL members share pooled losses above their self-insured retention.

Losses are paid from a pool of funds comprised of the member deposits. Deposits are actuarially determined to ensure that funds are available to pay any losses within the pooled layer. ACCEL collects a deposit from every member City for each program year in which the member participates. Separate deposit accounts are set for each member for each year of participation. Deposits are invested into pre-approved vehicles and each member account is credited monthly with investment income at the rate earned by the investment vehicle.

ACCEL adopted its investment policy in accordance with existing government code criteria.

Insurable property is covered for all risks by policies with a pooled aggregate limit of $1 billion. Earthquake and flood coverage have designated limits of $30 million per peril.

Unique risks such as airport liability, marine hull protection and indemnity, and boiler and machinery are fully insured. The City also maintains a faithful performance bond, and cyber liability insurance. The City filed three separate claims under the property insurance policy during fiscal year 2023. No other claims were filed during fiscal year 2023.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(98)
NOTE 12 SELF-INSURANCE FUND (CONTINUED)
The City’s self-insurance fund is financed through contributions made by the City’s General and Enterprise Funds. A cost allocation plan is used to apportion self-insurance fund costs.

An actuarial study is performed every two years. Actuarially determined liabilities in the fund include provisions for “incurred but not reported” claims. As of June 30, 2023, the estimated outstanding liabilities are $16,107,000 for workers’ compensation and $4,197,000 for general and automobile liability.

These liabilities are based on an actuarial valuation as of June 30, 2023. There are no unpaid claims for which annuity contracts have been purchased.

The City is self-insured for unemployment claims. At June 30, 2023, the liability for unemployment claims was $4,763, which is not included below. A summary of changes in claims liabilities is shown below:
2023 2022 2021
Claims Liabilities - July 1 $ 18,323,786 $ 18,386,428 $ 17,162,911 Incurred Claims 5,795,706 4,908,663 6,344,299
Actuarial Adjustment 2,812,214 (62,642) 4,623,517
Payments on Claims Attributable to
Events of Current and Prior Years (5,795,706) (4,908,663) (9,744,299) Claims Liabilities - June 30 $ 21,136,000 $ 18,323,786 $ 18,386,428 NOTE 13 JOINT POWER AGREEMENTS
Central Coast Water Authority
In 1991, the City’s electorate approved participation in the State Water Project (SWP). As a result, the City joined in the formation of the Central Coast Water Authority (CCWA) in September 1991. The purpose of the Central Coast Water Authority is to provide for the financing, construction, operation, and maintenance of certain local (non-state owned) facilities required to deliver water from the SWP to certain water purveyors and users in Santa Barbara County.

Each CCWA Member Agency, including the City of Santa Barbara, has entered into a Water Supply Agreement to provide for the development, financing, construction, operation, and maintenance of the CCWA Project. The purpose of the Water Supply Agreement is to assist in carrying out the purposes of CCWA with respect to the CCWA Project by: (1) requiring CCWA to sell, and the Santa Barbara Project participants to buy, a specified amount of water from CCWA (take or pay); and (2) assigning the Santa Barbara Project participant’s entitlement rights in the State Water Project to CCWA. Although the City does have an ongoing financial responsibility pursuant to the Water Supply Agreement between the City and CCWA, the City does not have an equity interest as defined by GASB Cod. Sec.

J50.105.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(99)
NOTE 13 JOINT POWER AGREEMENTS (CONTINUED)
Central Coast Water Authority (Continued)
Each Santa Barbara Project participant is required to pay to CCWA an amount equal to its share of the total cost of “fixed project costs” and certain other costs in the proportion established in the Water Supply Agreement. This includes the Santa Barbara Project participant’s share of payments to the California Department of Water Resources (DWR) under the State Water Supply Contract (including capital, operation, maintenance, power, and replacement costs of the DWR facilities), debt service on CCWA bonds, and all CCWA operating and administrative costs.

Each Santa Barbara Project participant is required to make payments under its Water Supply Agreement solely from the revenues of its water system. Each participant has agreed in its Water Supply Agreement to fix, prescribe, and collect rates and charges for its water system which will be at least sufficient to yield each fiscal year net revenues equal to 125% of the sum of (1) the payments required pursuant to the Water Supply Agreement, and (2) debt service on any existing participant obligation for which revenues are also pledged.

CCWA is composed of eight Member Agencies, all of which are public agencies. CCWA was organized and exists under a joint exercise of power agreement among the various participating public agencies. The Board of Directors is made up of one representative from each participating entity. Votes on the Board are apportioned between the entities based upon each entity’s pro-rata share of the water provided by the project. The City’s voting share of the project, based upon approximate allocation of State Water entitlement, is

11.47%. Operating and capital expenses are allocated among the members based upon various formulas recognizing the benefits of the various project components to each member.

On October 1, 1992, CCWA sold $177,200,000 in revenue bonds at a true interest cost of

6.64% to enable CCWA to finance a portion of the costs of constructing a water treatment plant to treat State water for use by various participating water purveyors and users within Santa Barbara and San Luis Obispo Counties, a transmission system to deliver such water to the participating water purveyors and users within Santa Barbara County, and certain local improvements to the water systems of some of the participating purveyors.

On November 1, 1996, CCWA sold $198,015,000 of revenue bonds at a true interest cost of

5.55% to defease CCWA’s $177,120,000 1992 revenue bonds and to pay certain costs of issuing the bonds. The 1996 bonds were issued in two series: Series A of $173,015,000 and Series B of $25,000,000. The Series B bonds are subject to mandatory redemption from amounts transferred from the Construction Fund and the Reserve Fund upon completion of the construction of CCWA facilities.

On September 28, 2006, CCWA sold $123,190,000 of revenue bonds at an average interest rate of 4.24% to refund $142,985,000 of outstanding 1996 Revenue Bonds with an average interest rate of 5.47%.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(100)
NOTE 13 JOINT POWER AGREEMENTS (CONTINUED)
Central Coast Water Authority (Continued)
On June 28, 2016, CCWA issued $45,470,000 of revenue bonds at an average interest rate of 1.355% to refund $59,645,000 of outstanding 2006 revenue bonds with an average interest rate of 4.24%.

Pursuant to the Water Supply Agreement, the City of Santa Barbara’s payments to CCWA includes its share of DWR’s fixed and variable costs, the debt service requirements on the CCWA Bonds, CCWA’s fixed operating and maintenance costs, and variable costs, as shown on the following table:

TOTAL CCWA
Fiscal Fixed Variable Fixed Variable Total CCWA AND DWR Year Costs Costs (1) Costs Costs (1) Costs COSTS
2023-24 3,149,387 $ 107,806 $ 1,065,158 $ - $ $ 1,065,158 $ 4,322,351 2024-25 3,096,480 239,455 1,116,416 132,845 1,249,261 4,585,196 2025-26 3,025,651 274,501 1,174,337 353,153 1,527,490 4,827,642 2026-27 3,123,317 288,227 1,233,053 362,201 1,595,254 5,006,798 2027-28 3,119,033 302,638 1,294,706 371,701 1,666,407 5,088,078 Total $ 15,513,868 $ 1,212,627 $ 5,883,670 $ 1,219,900 $ 7,103,570 $ 23,830,065

DWR COSTS CCWA COSTS
(1) Source: CCWA State Water Cost Ten-Year Projections.

Additional information and complete financial statements for the CCWA are available for public inspection in the Finance Department at City Hall, 735 Anacapa Street, between the hours of 7:30 a.m. and 5:30 p.m., Monday through Thursday.

Cater Treatment Plant Cost Sharing Agreement
In 1978, the City of Santa Barbara entered into a cost sharing agreement with the Carpinteria Valley Water District (Carpinteria) and the Montecito Water District (Montecito) for regional water treatment at the Cater Water Treatment Plant (Treatment Plant). Under the agreement, Carpinteria and Montecito pay for the Treatment Plant operating costs according to each agency’s proportional share of total treated water volumes. Additionally, Carpinteria and Montecito jointly pay for 39.7% of capital maintenance, renewal, and replacement costs.

The Districts also agreed to reimburse the City for a pro rata portion of capital expenses of the Treatment Plant including debt issued by and loans secured by the City to make the capital improvements. The City currently has two loans outstanding with the California State Department of Water Resources for improvements to the Plant (see Note 7) with principal balances outstanding totaling $19,743,917 ($2,218,366 and $17,525,550). Of these loan balances, $2,218,366 is shared by the City of Santa Barbara (80.3%) and Montecito (19.7%); $11,568,914 is shared by the City of Santa Barbara (75.37%) and Montecito (24.63%); and $5,956,636 is for the City of Santa Barbara (100%) for improvements to the Ortega Groundwater Treatment Plant.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(101)
NOTE 13 JOINT POWER AGREEMENTS (CONTINUED)
Cater Treatment Plant Cost Sharing Agreement (Continued) The Districts repay the City semiannually for the costs of the water treatment improvements plus interest. These repayments by the Districts will be paid through June 30, 2035.

Cachuma Operation and Maintenance Board
The Cachuma Operation and Maintenance Board (COMB) is a California Joint Powers Agency (JPA) formed in 1956 pursuant to an agreement with the Bureau of Reclamation.

The agreement transferred to the Cachuma Member Units the responsibility to operate, repair and maintain all Cachuma Project facilities, except Bradbury Dam, which the Bureau of Reclamation has continued to operate. COMB’s Member Units include Carpinteria Valley Water District, City of Santa Barbara, Goleta Water District, and Montecito Water District. An Amended and Restated Agreement for the Establishment of a Board of Control to Operate and Maintain the Cachuma Project (Cachuma Operation and Maintenance Board) was adopted on May 23, 1996 and amended on September 16, 2003. In October 2018 the COMB JPA Separation Agreement was signed, acknowledging the removal of the Santa Ynez River Water Conservation District Improvement District No. 1 from COMB membership.

COMB is responsible for diversion of water to the South Coast through the Tecolote Tunnel, and operation and maintenance of the South Coast Conduit pipeline, flow control valves, meters, and instrumentation at control stations, and turnouts along the South Coast Conduit and at four regulating reservoirs. COMB coordinates closely with the Bureau of Reclamation and Member Units’ staff to ensure that water supplies meet daily demands. The Fisheries Division of COMB conducts fish monitoring and habitat improvement projects to implement provisions of the October 2000 Lower Santa Ynez River Fish Management Plan. Following is a summary of the preliminary Fiscal Year 2023 year-end COMB expenditures, as presented at the August 28, 2023, COMB Board Meeting:

Operations Division $ 7,217,379
Fisheries Division 1,357,231
Operations Subtotal $ 8,574,610
Total Fiscal Year 2023 Expenditures $ 8,574,610
Expenditures for Fiscal Year 2023 represent normal costs for operation and maintenance of Cachuma Project facilities, as well as some special projects. The numbers above represent gross expenditures, prior to any revenue offsets from grants or other funds. Expenditures are allocated to Member Units in relation to percentage share of Cachuma Project yield. The City’s share is typically 32.19% for costs apportioned among all Cachuma Member Units, and 35.89% for costs apportioned only among COMB Member Agencies (South Coast Member Units).

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(102)
NOTE 13 JOINT POWER AGREEMENTS (CONTINUED)
Cachuma Conservation Release Board
The Cachuma Conservation Release Board (CCRB) is a joint powers agency formed in January 1973 by Carpinteria Valley Water District, the City of Santa Barbara, Goleta Water District, and the Montecito Water District. In January 2011, Carpinteria withdrew its membership. CCRB was established to represent its members in protecting their Cachuma Project water rights and other related interests. CCRB’s activities are funded by its Members, which in turn are funded by their water rate payors.

In 1993, CCRB began development of a Fish Management Plan Program in the Lower Santa Ynez River with many federal, state, and local partners. CCRB was the primary implementing agency of the fisheries program until January 2011. At that time, implementation of the Fish Management Plan was transferred to the Cachuma Operation and Maintenance Board (COMB). Since that time, CCRB has focused on issues related to the Cachuma Project water rights.

The U.S. Bureau of Reclamation, on behalf of the Cachuma Project Member Units, holds the Cachuma Project water right permits, and CCRB is the agency responsible for the actions and decisions relative to the terms and conditions of those permits for CCRB Member Units. These include issues related to downstream releases of water from Cachuma Reservoir for the benefit and protection of steelhead/rainbow trout and their habitats, and protection of the Cachuma Project water supply. Since 2000, CCRB has participated in multiple water rights hearings before the State Water Resources Control Board to establish the Cachuma Project operating parameters necessary to conform to the various parties’ water rights. Since that time CCRB has participated in hearings related to the Final EIR on the water rights issues and continued legal and technical consultation for a new Water Rights Order (WR 2019-148), which the Water Resources Control Board ultimately approved and issued in September 2019. With its issuance, CCRB is now assisting Reclamation in implementing requirements of the Order for the Cachuma Project.

In some instances, the costs for this work are shared with other parties that have similar interests. Following is a summary of preliminary Fiscal Year 2023 year-end CCRB expenditures as of June 30, 2023, for the portion of these activities that CCRB funds, as presented at the September 7, 2023, CCRB Board Meeting:

General and Administrative $ 222,164
Legal Activities 150,748
Consultant Activities 188,449
SWRCB Water Rights 28,497
Total Fiscal Year 2023 Expenditures $ 589,858
Cachuma Project yield held by CCRB members, resulting in a City cost share percentage of

40.88%, for most items. This represents approximately $241,134 in City costs for Fiscal Year 2023 excluding any offsets from other CCRB income.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(103)
NOTE 14 EMPLOYEE MORTGAGE LOAN ASSISTANCE PROGRAM
On October 2, 2001, the City Council created an Employee Mortgage Loan Assistance Program (EMLAP). The purpose of the program was to help the City attract and retain highly qualified employees by providing assistance in dealing with the high cost of home ownership in the Santa Barbara area. The goals of the program included establishing a more stable workforce and, by promoting local homeownership, reducing commuting distances and times. The program was open to all permanent employees who are “first-time homebuyers” (defined as not having owned a market-rate home on the South Coast of Santa Barbara County within the last three years). Homes purchased under the City’s EMLAP must be located on the South Coast of Santa Barbara County. The City’s EMLAP was structured using a combination of an employee down payment, traditional bank mortgage financing, and City-provided financing as follows:

Employee Down Payment (Minimum) 5 %
Bank-Provided 1st Deed of Trust Loan 80
City-Funded 2nd Deed of Trust Loan (Maximum) 15
Total Financing 100 %
Under the terms of the EMLAP, City participation was limited to a purchase price of $1,250,000. Therefore, the maximum second deed of trust loan available to an employee was $187,500 (15% of $1,250,000). Interest on the City loan is variable, adjusted annually, and is set equal to the most recent quarterly interest rate paid the City for the State of California Local Agency Investment Fund (LAIF rate) balances. The loan is repayable over 15 years, with interest only due for the first five years, converting to a 30-year amortization schedule payable over 10 years with a balloon payment due at the end of 15 years. Payments are made by payroll deduction. To assist the employee, the City also paid up to four points to the bank on the employee’s first deed of trust loan up to $40,000 to “buy down” the interest rate on the first trust deed. The points paid by the City are to be repaid when the second trust deed is refinanced or if the home is sold. However, if the employee maintains continuous employment with the City for five years from the date of the loan, then 25% of the value of the points loan obligation will be forgiven, and after 10 years 50% will be forgiven. Upon termination of employment the second deed of trust loan, and any related points, are payable either on the fifth anniversary of the loan, or 180 days from the last day of employment, whichever is longer.

As of June 30, 2023, the City has $86,814 in employee loans outstanding. The City has loaned all approved funds and is not currently accepting any new applications for EMLAP loans.

NOTE 15 LEASES
Lease Receivable
The City, acting as lessor, leases for the use land under long-term, noncancelable lease agreements, which expire at various dates through 2043 with an interest rates ranging from

3.5% of 4.75% depending on the length of the lease agreement. During the fiscal year ended June 30, 2023, the City recognized $8,724,681 and $1,611,823 in lease revenue and interest revenue, respectively, pursuant to these agreements.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(104)
NOTE 15 LEASES (CONTINUED)
Lease Payable
The City leases equipment and property under noncancelable lease agreements. A portion of these leases are allocated to the Golf Course Enterprise Fund The leases expire at varies dates through 2043 including options. Total future minimum lease payments are as follows:

Year Ending June 30, Principal Interest Principal Interest 2024 $ 199,975 $ 95,641 $ 95,481 $ 49,675
2025 186,070 88,243 64,538 46,492
2026 189,805 80,655 34,427 44,757
2027 197,623 72,783 34,034 43,337
2028 95,113 66,713 37,932 41,760
2029-2033 356,718 280,612 178,331 184,257
2034-2038 421,548 199,019 281,032 132,679
2039-2043 615,387 70,119 410,258 46,746
Total $ 2,262,239 $ 953,785 $ 1,136,033 $ 589,703
Governmental Activities Business-Type Activities
NOTE 16 SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA) The City has entered into subscription based-information technology arrangements (SBITAs) for various software applications. The SBITA arrangements expire at various dates through 2029 and provide for renewal options.

As of June 30, 2023, SBITA assets and the related accumulated amortization totaled $4,235,769 and $1,189,098, respectively.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30, Principal Interest Principal Interest 2024 $ 962,498 $ 44,599 $ 294,594 $ 29,515
2025 581,930 17,855 312,972 18,021
2026 124,068 10,395 316,967 6,379
2027 133,029 5,277 136,655 -
2028 55,108 2,489 - -
2029 33,245 354 - -
Total $ 1,889,878 $ 80,969 $ 1,061,188 $ 53,915
Governmental Activities Business-Type Activities

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(105)
NOTE 17 DEFICIT FUND EQUITY
The following funds had deficit balances as of June 30, 2023:

Street Grant Capital Fund $ (7,872,257)
Permanent Local Housing Allocation Fund (652,689)
FEMA Reimbursement Fund (3,101,711)
Self-Insurance Internal Service Fund (12,388,589)
Postemployment Benefits Internal Service Fund (52,924,406) Deficit in the Streets Grants Capital Funds, Permanent Local Housing Allocation, and FEMA Reimbursement, and will be eliminated through receipt of revenue in fiscal year 2024. The deficit equity has been created by recognition of reimbursable costs, where payment had not been received by the City within the recognition period for the year ended June 30, 2023.

The deficit in the Self Insurance Internal Service Fund represents the present value of future claim payments that are anticipated to be paid in future fiscal years. The deficit will be funded by increasing charges to other funds in future fiscal years. The deficit in the Postemployment Benefits Internal Service Fund represents the benefit liability of future retiree medical and sick leave benefits. This liability grew significantly in fiscal year 2020- 2021 due to the City’s change in healthcare plans to CalPERS medical, which includes a benefit option for retirees age 65 and older, for which the City will incur some costs. The deficit will be funded by increasing charges to other funds in future fiscal years.

NOTE 18 OTHER POSTEMPLOYMENT BENEFITS
The following is a summary of OPEB related items for the year ended June 30, 2023:

Deferred Deferred Total OPEB OPEB
Outflows Inflow Liability Expense
Retiree Medical Care Benefits $ 9,246,402 $ (14,094,110) $ 38,738,539 $ 3,065,478 Sick Leave Retiree Benefits 2,012,374 (1,001,972) 8,792,763 944,337 Total $ 11,258,776 $ (15,096,082) $ 47,531,302 $ 4,009,815

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(106)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums
Plan Description
The City provides a retiree medical insurance contribution benefit, in accordance with employee Memorandum of Understanding, to retired employees. This is a single employer defined benefits OPEB plan. The benefit is applicable to employees who retire from City service and,

1. have at least 10 or 15 years of classified or unclassified service, depending on bargaining unit; or

2. retire from City with an industrial disability.

The City contributes an amount each month toward the purchase of medical insurance for the retiree and his/her spouse or domestic partner registered with the City Clerk or the Secretary of State, if applicable. Eligibility and the monthly amount is determined by the applicable Memorandum of Agreement of the retired employee. The payment is based upon the employees’ years of service up to a maximum of 35 years, multiplied by the annual amount for the respective employee unit.

The City will continue to make its contribution until the retiree reaches age 65 or dies, whichever occurs first, provided however, that if the retiree dies before reaching the age of 65 and there is a surviving spouse or registered domestic partner, the City’s contribution shall cease when the retiree would have reached age 65. Thereafter, the spouse may remain on the insurance plan, at his/her own cost, subject to the conditions set forth by the insurance company.

Beginning January 1, 2020, the City replaced its current medical plans with medical plans offered through CalPERS Health Benefits Program. Contracting agencies such as the City of Santa Barbara are required to provide an employer health contribution toward the cost of the monthly premium for all employees and annuitants. Retirees age 65 or older have the option to purchase a Medicare Supplement plan offered through CalPERS, and the Public Employees’ Medical & Hospital Care Act (PEMHCA) requires the City to make the minimum contributions including administrative fee toward the retiree’s health premium and allows for various contribution methods. This change to the plan resulted in a significant increase to the total OPEB liability for the fiscal year ended June 30, 2021. However, it does not apply to retirees electing Medicare coverage in nonCalPERS medical plans.

For the Police bargaining unit only: The City will continue the normal retiree medical allowance past the age of 65 for the six specified employees named in the Police Memorandum of Understanding who retire after December 23, 2006 and thereafter certify, on an annual basis, that they are not eligible to apply for Medicare Part A (hospitalization) coverage on the basis of their City service, other covered employment, through a spouse’s covered employment, or through any other means.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(107)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)
Plan Description (Continued)
In addition to the direct City paid contributions, retirees covered under the City’s plans receive pre-65 benefits that are subsidized as the cost of their coverage is based on blended (active and retiree) premium rates instead of normally higher retiree only rates.

This implicit subsidy is also considered in the valuation for retirees electing City healthcare plan coverage. However, it does not apply to retirees electing coverage in non-City plans.

Employees Covered
As of the June 30, 2023, the following current and former employees were covered by the benefit terms under the plan:

Number of
Covered
Participants
Inactive Currently Receiving Benefits 391
Inactive Entitled to but not yet Receiving Benefits 603 Active Employees* 960
Total 1,954
*Excludes active employees who would not meet service eligibility at age 65.

Contributions
The City currently administers its retiree medical plan. There is no requirement to contribute any amount beyond the pay-as-you-go contributions. If retirees elect medical insurance coverage through the City, the retiree pays the entire cost of the premiums, less the City’s monthly payment to the retiree. The City is evaluating various options for funding the postretirement health benefits liability. The City has not set up a trust for purposes of funding the required retiree medical payments but continues to fund the benefit on a pay-as-you-go basis in the current year.

For the year ended June 30, 2023, cash benefit payments were $835,557 and the estimated implied subsidy was $502,755 resulting in total payments of $1,338,312.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(108)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)
Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2022 for the measurement period July 1, 2021 through June 30, 2022. The total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation dated June 30, 2021 rolled forward to June 30, 2022, based on the following actuarial assumptions.

Actuarial Assumptions
Discount Rate 3.54%
Inflation 2.50%
Salary Increases 2.75% (Merit tables from CalPERS
2000-2019 Experience Study)
Mortality Rate CalPERS 2000-2019 Experience
Study
Mortality Improvement Projected fully generational with Scale MP-2021
Healthcare Trend Rate Non-Medicare -8.50% for 2024,
decreasing to an ultimate rate of

3.45% in 2076 and later years
Discount Rate
The discount rate used to measure the total OPEB liability was 3.54%. The discount rate is based on the bond buyer 20-bond index.

Change in Assumption
The discount rate changed from 2.16% to 3.54%.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(109)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)
Changes in the Total OPEB Liability
The changes in the total OPEB liability for the plan are as follows:

Total
OPEB Liability
Changes in Total OPEB Liability
(Measurement Period 7/1/21 - 6/30/22)
Service Cost 2,842,600 $
Interest 1,008,996
Actual vs. Expected Experience -
Assumption Changes (8,338,795)
Benefit Payments (1,288,904)
Net Changes (5,776,103)
Total OPEB Liability - Beginning of Year 44,514,642
Total OPEB Liability - End of Year 38,738,539 $
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point higher or one percentage point lower than the current discount rate, for the measurement period June 30, 2022.
1% Decrease Discount Rate 1% Increase
(2.54%) (3.54%) (4.54%)
Total OPEB Liability 44,526,098 $ 38,738,539 $ 34,034,334 $ Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point higher or one percentage point lower than the current healthcare cost trend rates:
1% Decrease Current Rate 1% Increase
Total OPEB Liability 33,119,267 $ 38,738,539 $ 45,965,406 $ Healthcare Trend Rate

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(110)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $3,065,478. At June 30, 2023, the City’s deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in Assumptions $ 6,089,824 $ (13,585,110)
Differences Between Actual and Expected Experience 1,818,266 (509,000) Employer Benefit Payments Made Subsequent
to the Measurement Date 1,338,312 -
Total $ 9,246,402 $ (14,094,110)
June 30, 2022
The $1,338,312 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ending June 30, Amount
2024 $ (791,873)
2025 (791,873)
2026 (708,873)
2027 (631,873)
2028 (585,873)
Thereafter (2,675,655)
Sick Leave Retiree Benefits
Plan Description
The City provides additional retirement benefits based on unused accumulated sick leave to eligible employees who retire with CalPERS pension benefits immediately upon termination of employment from the City. This is a single employer defined benefits OPEB plan. Under this plan, unused accumulated sick leave balances are converted to credited service that is used to provide additional retirement benefits. Annuity benefits are determined based on credited service, final average compensation, and the CalPERS benefit formulas. Employees are eligible for benefits if they terminate employment at a minimum of age 50 and 5 years’ service. Eligibility is applicable to employees who have accrued at least 500 hours of unused sick leave.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(111)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Sick Leave Retiree Benefits (Continued)
Employees Covered
As of the June 30, 2022 measurement date, the following current and former employees were covered by the benefit terms under the plan:

Number of
Covered
Participants
Inactive Currently Receiving Benefits 1
Inactives Entitled to but not yet Receiving Benefits -
Active Employees 953
Total 954
Contributions
The City has not set up a trust for purposes of funding the required sick leave retiree benefits but continues to fund the benefit on a pay-as-you-go basis in the current year.

Included in benefit payments are employees that receive a lump sum payment at retirement and elect not to receive an on-going benefit. The City is evaluating various options for funding the postretirement benefits liability.

Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2022 for the measurement period July 1, 2021 through June 30, 2022. The total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation dated June 30, 2021 rolled forward to June 30, 2022, based on the following actuarial assumptions.

Actuarial Assumptions
Discount Rate 3.54%
Inflation 2.50%
Salary Increases 2.75% (Merit tables from CalPERS
2000-2019 Experience Study)
Mortality Rate CalPERS 2000-2019 Experience
Study
Mortality Improvement Projected fully generational with Scale MP-2021
Healthcare Trend Rate Benefit is not dependent on
healthcare trend
Discount Rate
The discount rate used to measure the total OPEB liability was 3.54%. The discount rate is based on the bond buyer 20-bond index.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(112)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Sick Leave Retiree Benefits (Continued)
Change in Assumption
The discount rate changed from 2.16% to 3.54%.

Changes in the Total OPEB Liability
The changes in the total OPEB liability for the plan are as follows:

Total OPEB
Liability
Changes in Total OPEB Liability
(Measurement Period 7/1/21 - 6/30/22)
Service Cost $ 700,761
Interest 209,205
Changes of Benefit Terms -
Actual vs. Expected Experience -
Assumption Changes (676,426)
Benefit Payments (850,860)
Net Changes (617,320)
Total OPEB Liability - Beginning of Year 9,410,083
Total OPEB Liability - End of Year $ 8,792,763
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is one percentage point higher or one percentage point lower than the current discount rate, for the measurement period June 30, 2022:
1% Decrease Current Rate 1% Increase
(2.54%) (3.54%) (4.54%)
Total OPEB Liability 9,279,534 $ 8,792,763 $ 8,325,665 $ Discount Rate

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2023
(113)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
Actuarial Assumptions
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $944,337. At June 30, 2023, the City’s deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in Assumptions $ 449,108 $ (896,972)
Differences Between Actual and Expected Experience 909,946 (105,000) Employer Benefit Payments Made Subsequent
to the Measurement Date 653,320 -
Total $ 2,012,374 $ (1,001,972)
June 30, 2022
The $653,320 reported as deferred outflows of resources related to employer benefit payments made subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year June 30, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ending June 30, Amount
2024 $ 34,371
2025 34,371
2026 34,371
2027 34,371
2028 33,371
Thereafter 186,227
NOTE 19 RESTATEMENTS
Beginning Net
Position/Fund Beginning Net
Balance as Position/Fund
Previously Reported Restatement Balance as Restated
Governmental Activities $ 407,376,198 $ 1,265,915 (a) $ 408,642,113 Business-Type Activities 547,146,380 (356,217) (a)(b)(c) 546,790,163 Other Aggregate
(FEMA Reimbursement Fund) (2,815,086) 1,265,915 (a) (1,549,171) Water Enterprise Fund 255,020,000 (1,265,915) (a) 253,754,085 Airport Enterprise Fund 149,212,906 693,648 (b) 149,906,554 Waterfront Enterprise Fund 19,358,368 216,050 (c) 19,574,418 (a) Restatement to move revenue recorded in fiscal year 2021-2022 in the Water Enterprise Fund to the FEMA Reimbursement Fund. (b) Restatement to record revenue earned in fiscal year 2021-2022 to the correct period. (c) Restatement to record revenue earned in fiscal year 2021-2022 to the correct period. (114)
(115)

REQUIRED SUPPLEMENTARY INFORMATION
(116)
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CITY OF SANTA BARBARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

SAFETY RETIREMENT AND SAFETY SERVICE RETIREMENT PLANS

LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information. (117)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Measurement Period Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Total Pension Liability:

Interest on total pension liability $ 2,123 $ 3,124 $ 6,130 $ 7,135 $ 8,117 Differences between expected and actual
experience 16,997 (16,140) (10,704) 23,260 (4,543)
Changes in assumptions (4,425) (1,370) 5,666 809 (2,865) Changes in benefits - - - - -
Benefit payments, including refunds
of employee contributions (26,232) (31,152) (38,631) (42,216) (43,905) Net Change in Total Pension Liability (11,537) (45,538) (37,539) (11,012) (43,196) Total Pension Liability - Beginning of Year 111,392 156,930 194,469 205,481 248,677 Total Pension Liability - End of Year (a) $ 99,855 $ 111,392 $ 156,930 $ 194,469 $ 205,481 Plan Fiduciary Net Position:

Contributions - employer $ - $ - $ - $ - $ -
Contributions - employee - - - - -
Net investment income - - - - -
Benefit payments - - - - -
Net Change in Plan Fiduciary Net Position - - - - -
Plan Fiduciary Net Position - Beginning of Year - - - - - Plan Fiduciary Net Position - End of Year (b) $ - $ - $ - $ - $ - Total Pension Liability - Ending (a)-(b) $ 99,855 $ 111,392 $ 156,930 $ 194,469 $ 205,481 Plan fiduciary net position as a percentage
of the total pension liability 0.00% 0.00% 0.00% 0.00% 0.00% Covered payroll N/A N/A N/A N/A N/A
Net pension liability as percentage of
covered payroll N/A N/A N/A N/A N/A
Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2020 to June 30, 2021:

The discount rate was reduced from 3.5% to 2.21%.

From fiscal year June 30, 2021 to June 30, 2022:

The discount rate was reduced from 2.21% to 2.16%.

From fiscal year June 30, 2021 to June 30, 2022:

The discount rate was increased from 2.16% to 3.54%.

During the fiscal year ended June 30, 2017, the safety service retirement plan trust was closed.

CITY OF SANTA BARBARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

SAFETY RETIREMENT AND SAFETY SERVICE RETIREMENT PLANS (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information. (118)
Fiscal Year Ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Measurement Period Ended June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Total Pension Liability:

Interest on total pension liability $ 38,189 16,437 $ 58,515 $ 63,008 $ 277,220 $ Differences between expected and actual
experience 26,062 41,577 (237,062) - -
Changes in assumptions (13,101) 64,419 42,874 - -
Changes in benefits (416,227) (227,990) 54,434 - -
Benefit payments, including refunds
of employee contributions (90,589) (116,087) (113,370) (173,700) (175,058) Net Change in Total Pension Liability (199,892) (477,418) (194,609) (110,692) 102,162 Total Pension Liability - Beginning of Year 726,095 925,987 1,120,596 1,231,288 1,129,126 Total Pension Liability - End of Year (a) $ 248,677 $ 726,095 $ 925,987 $ 1,120,596 $ 1,231,288 Plan Fiduciary Net Position:

Contributions - employer $ 48,972 48,972 $ 49,611 $ 102,126 $ 96,992 $ Contributions - employee - - - - -
Net investment income 4,392 28,595 1,123 62,733 36,741
Benefit payments (506,816) (116,087) (113,370) (173,700) (175,058) Net Change in Plan Fiduciary Net Position (453,452) (38,520) (62,636) (8,841) (41,325) Plan Fiduciary Net Position - Beginning of Year 453,452 491,972 554,608 563,449 604,774 Plan Fiduciary Net Position - End of Year (b) $ - $ 453,452 $ 491,972 $ 554,608 $ 563,449 Net Pension Liability - Ending (a)-(b) $ 248,677 $ 272,643 $ 434,015 $ 565,988 $ 667,839 Plan fiduciary net position as a percentage
of the total pension liability 0.00% 62.45% 53.13% 49.49% 45.76% Covered payroll N/A N/A N/A N/A N/A
Net pension liability as percentage of
covered payroll N/A N/A N/A N/A N/A
Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2020 to June 30, 2021:

The discount rate was reduced from 3.5% to 2.21%.

From fiscal year June 30, 2021 to June 30, 2022:

The discount rate was reduced from 2.21% to 2.16%.

From fiscal year June 30, 2021 to June 30, 2022:

The discount rate was increased from 2.16% to 3.54%.

During the fiscal year ended June 30, 2017, the safety service retirement plan trust was closed.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

SAFETY RETIREMENT AND SAFETY SERVICE RETIREMENT PLANS

LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information. (119)
Fiscal year ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Actuarially determined contribution $ 26,232 $ 26,232 $ 31,152 $ 38,631 $ 42,216 Contributions in relation to the
actuarially determined contributions (26,232) (26,232) (31,152) (38,631) (42,216) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll N/A N/A N/A N/A N/A
Notes to Schedule:

During the fiscal year ended June 30, 2017, the safety service retirement plan trust was closed.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

SAFETY RETIREMENT AND SAFETY SERVICE RETIREMENT PLANS (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information. (120)
Fiscal year ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Actuarially determined contribution $ 43,905 $ 48,972 $ 49,611 $ 108,000 $ 105,000 Contributions in relation to the
actuarially determined contributions (43,905) (48,972) (49,611) (104,000) (97,000) Contribution deficiency (excess) $ - $ - $ - $ 4,000 $ 8,000 Covered payroll N/A N/A N/A N/A N/A
Notes to Schedule:

During the fiscal year ended June 30, 2017, the safety service retirement plan trust was closed.

CITY OF SANTA BARBARA

SCHEDULE OF INVESTMENT RETURNS

SAFETY RETIREMENT AND SAFETY SERVICE RETIREMENT PLANS
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (121)
Measurement Date 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Annual money-weighted rate of
return, net of investment expense 0.00% 0.00% 0.00% 0% 0% 0% 0% 0.00% 6.40% 11.82% Notes to Schedule:

During the fiscal year ended June 30, 2017, the safety service retirement plan trust was closed.

CITY OF SANTA BARBARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

CALPERS MISCELLANEOUS PENSION PLANS
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (122)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:

Service cost $ 12,049,649 $ 10,993,296 $ 11,117,944 $ 11,242,442 Interest on total pension liability 45,902,084 47,202,721 44,176,368 42,609,454 Differences between expected and actual
experience 1,483,308 (1,068,539) (1,621,002) 5,289,518
Changes in assumptions 20,839,306 - - -
Changes in benefits - - - -
Benefit payments, including refunds
of employee contributions (36,541,549) (33,626,670) (31,532,186) (28,975,301) Net Change in Total Pension Liability 24,752,018 42,481,588 22,141,124 30,166,113 Total Pension Liability - Beginning of Year 676,572,579 651,820,561 629,679,437 599,513,324 Total Pension Liability - End of Year (a) $ 719,054,167 $ 676,572,579 $ 651,820,561 $ 629,679,437 Plan Fiduciary Net Position:

Contributions - employer $ 20,887,408 23,992,213 $ 19,279,801 $ 17,336,444 $ Contributions - employee 4,643,550 6,252,846 6,253,457 5,841,003 Net investment income (43,054,573) 106,462,271 22,662,797 28,408,000 Benefit payments (36,541,549) (33,626,670) (31,532,186) (28,975,301) Plan to plan resource movement - - - -
Administrative expense (353,568) (467,575) (637,272) (306,672) Other miscellaneous income (expense) - - - 999
Net Change in Plan Fiduciary Net Position (51,313,927) 99,508,280 16,026,597 22,304,473 Plan Fiduciary Net Position - Beginning of Year 567,579,647 468,071,367 452,044,770 429,740,297 Plan Fiduciary Net Position - End of Year (b) $ 516,265,720 $ 567,579,647 $ 468,071,367 $ 452,044,770 Net Pension Liability - Ending (a)-(b) $ 202,788,447 $ 108,992,932 $ 183,749,194 $ 177,634,667 Plan fiduciary net position as a percentage
of the total pension liability 71.80% 83.89% 71.81% 71.79% Covered payroll $ 61,614,977 $ 59,925,660 $ 59,948,680 $ 58,650,784 Net pension liability as percentage of
covered payroll 329.12% 181.88% 306.51% 302.87%
Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:
rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

Inflation was reduced from 2.75% to 2.50%.

From fiscal year June 30, 2019 to June 30, 2020:

There were no significant changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no significant changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%, and the inflation rate decreased from 2.5% to 2.3%. * Fiscal year 2015 was the first year of implementation and therefore only nine years are shown. expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without

CITY OF SANTA BARBARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

CALPERS MISCELLANEOUS PENSION PLANS (CONTINUED)
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (123)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period Ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:

Service cost $ 10,848,882 $ 10,827,663 $ 9,760,428 $ 9,563,623 $ 9,676,642 Interest on total pension liability 39,079,614 40,531,753 37,902,710 36,129,828 34,649,348 Differences between expected and actual
experience (291,764) (5,119,771) (132,903) (4,360,012) - Changes in assumptions (3,358,919) 32,405,333 - (8,848,255) - Changes in benefits - - - - -
Benefit payments, including refunds
of employee contributions (26,641,065) (25,274,088) (23,474,988) (21,493,097) (20,041,269) Net Change in Total Pension Liability 51,918,751 21,088,887 24,055,247 10,992,087 24,284,721 Total Pension Liability - Beginning of Year 578,424,437 526,505,686 502,450,439 491,458,352 467,173,631 Total Pension Liability - End of Year (a) $ 599,513,324 $ 578,424,437 $ 526,505,686 $ 502,450,439 $ 491,458,352 Plan Fiduciary Net Position:

Contributions - employer $ 14,693,333 15,654,944 $ 14,184,385 $ 13,162,072 $ 11,373,020 $ Contributions - employee 5,249,989 5,071,882 4,988,705 4,833,301 4,587,261 Net investment income 34,092,665 40,908,639 2,007,173 8,218,938 54,806,585 Benefit payments (26,641,065) (25,274,088) (23,474,988) (21,493,097) (20,041,269) Plan to plan resource movement (999) (10,124) - (1,157) - Administrative expense (628,306) (543,859) (226,033) (435,768) - Other miscellaneous income (expense) (1,193,164) - - - - Net Change in Plan Fiduciary Net Position 26,534,064 34,845,783 (2,520,758) 4,284,289 50,725,597 Plan Fiduciary Net Position - Beginning of Year 403,206,233 368,360,450 370,881,208 366,596,919 315,871,322 Plan Fiduciary Net Position - End of Year (b) $ 429,740,297 $ 403,206,233 $ 368,360,450 $ 370,881,208 $ 366,596,919 Net Pension Liability - Ending (a)-(b) $ 169,773,027 $ 175,218,204 $ 158,145,236 $ 131,569,231 $ 124,861,433 Plan fiduciary net position as a percentage
of the total pension liability 71.68% 69.71% 69.96% 73.81% 74.59% Covered payroll $ 57,069,164 $ 55,884,714 $ 55,485,351 $ 53,022,251 $ 50,588,866 Net pension liability as percentage of
covered payroll 297.49% 313.54% 285.02% 248.14% 246.82% Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

Inflation was reduced from 2.75% to 2.50%.

From fiscal year June 30, 2019 to June 30, 2020:

There were no significant changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no significant changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%, and the inflation rate decreased from 2.5% to 2.3%. * Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

CALPERS MISCELLANEOUS PENSION PLANS
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (124)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Actuarially determined contribution $ 26,711,721 $ 23,966,588 $ 20,836,231 $ 19,206,093 Contributions in relation to the
actuarially determined contributions (26,711,721) (23,966,588) (20,836,231) (19,206,093) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 71,879,023 $ 61,614,977 $ 59,925,660 $ 59,948,680 Contributions as a percentage of covered
payroll 37.16% 38.90% 34.77% 32.04%
Notes to Schedule:

Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017
Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.500% 2.500% 2.625%
Salary increases (2) (2) (2) (2)
Investment rate of return 6.90% (3) 7.00% (3) 7.00% (3) 7.25% (3) Retirement age (4) (4) (4) (4)
Mortality (5)(5) (5)(5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3)Net of pension plan investment expense, including inflation. (4) The probabilities of retirement are based on the 2010 CalPERS Experience Study report. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

CALPERS MISCELLANEOUS PENSION PLANS (CONTINUED)
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (125)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Actuarially determined contribution $ 17,247,341 $ 15,613,850 $ 14,693,333 $ 14,184,385 $ 13,162,072 Contributions in relation to the
actuarially determined contributions (17,247,341) (15,613,850) (14,693,333) (14,184,385) (13,162,072) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 58,650,784 $ 57,069,164 $ 55,884,714 $ 55,485,351 $ 53,022,251 Contributions as a percentage of covered
payroll 29.41% 27.36% 26.29% 25.56% 24.82%
Notes to Schedule:

Valuation Date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value 15-Year Smoothed
Market Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3)Net of pension plan investment expense, including inflation. (4) The probabilities of retirement are based on the 2010 CalPERS Experience Study report. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

CALPERS SAFETY POLICE PENSION PLANS
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (126)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:

Service cost $ 5,268,330 $ 5,132,860 $ 5,127,183 $ 5,038,115 Interest on total pension liability 20,991,410 21,422,699 20,289,464 19,515,209 Differences between expected and actual
experience 422,522 (4,278,299) 1,353,894 -
Changes in assumptions 11,882,412 - - 1,774,631
Changes in benefits - - - -
Benefit payments, including refunds
of employee contributions (17,495,066) (16,321,634) (15,727,551) (14,518,454) Net Change in Total Pension Liability 10,225,158 16,800,076 11,042,990 11,809,501 Total Pension Liability - Beginning of Year 308,983,168 298,758,010 287,715,020 275,905,519 Total Pension Liability - End of Year (a) $ 325,783,244 $ 308,983,168 $ 298,758,010 $ 287,715,020 Plan Fiduciary Net Position:

Contributions - employer $ 9,754,764 10,513,730 $ 9,073,135 $ 8,168,274 $ Contributions - employee 1,684,704 1,720,503 1,840,823 1,606,426 Net investment income (18,111,553) 45,022,492 9,697,393 12,279,660 Benefit payments (17,495,066) (16,321,634) (15,727,551) (14,518,454) Plan to plan resource movement - - - -
Administrative expense (148,839) (198,742) (273,976) (133,404) Other miscellaneous income (expense) - - - 436
Net Change in Plan Fiduciary Net Position (23,557,024) 39,977,383 4,609,824 7,402,938 Plan Fiduciary Net Position - Beginning of Year 238,930,146 198,952,763 194,342,939 186,940,001 Plan Fiduciary Net Position - End of Year (b) $ 215,373,122 $ 238,930,146 $ 198,952,763 $ 194,342,939 Net Pension Liability - Ending (a)-(b) $ 110,410,122 $ 70,053,022 $ 99,805,247 $ 93,372,081 Plan fiduciary net position as a percentage
of the total pension liability 66.11% 77.33% 66.59% 67.55% Covered payroll $ 15,488,312 $ 15,924,804 $ 16,359,278 $ 16,273,075 Net pension liability as percentage of
covered payroll 712.86% 439.90% 610.08% 573.78%
Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

Inflation was reduced from 2.75% to 2.50%.

From fiscal year June 30, 2019 to June 30, 2020:

There were no significant changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no significant changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%, and the inflation rate decreased from 2.5% to 2.3%. * Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

CALPERS SAFETY POLICE PENSION PLANS (CONTINUED)
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (127)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Measurement Period Ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:

Service cost $ 4,857,235 $ 4,491,601 $ 4,497,742 $ 5,010,613 $ 5,186,081 Interest on total pension liability 17,958,387 18,703,388 17,452,394 16,967,585 16,640,662 Differences between expected and actual
experience 2,285,455 (1,701,292) (4,101,607) (7,448,519) - Changes in assumptions (1,262,820) 15,186,679 - (4,242,689) - Changes in benefits - - - - -
Benefit payments, including refunds
of employee contributions (13,624,691) (12,846,960) (11,957,196) (10,608,382) (9,641,215) Net Change in Total Pension Liability 23,088,415 10,958,567 5,891,333 (321,392) 12,185,528 Total Pension Liability - Beginning of Year 264,946,952 241,858,537 235,967,204 236,288,596 224,103,068 Total Pension Liability - End of Year (a) $ 275,905,519 $ 264,946,952 $ 241,858,537 $ 235,967,204 $ 236,288,596 Plan Fiduciary Net Position:

Contributions - employer $ 6,100,953 7,279,784 $ 5,502,842 $ 5,729,090 $ 5,811,400 $ Contributions - employee 1,434,341 1,408,892 1,366,145 1,462,940 1,514,918 Net investment income 14,936,635 18,139,466 934,079 3,780,559 25,268,419 Benefit payments (13,624,691) (12,846,960) (11,957,196) (10,608,382) (9,641,215) Plan to plan resource movement (436) 10,605 - (3,426) - Administrative expense (276,932) (243,830) (103,244) (184,197) - Other miscellaneous income (expense) (525,899) - - - -
Net Change in Plan Fiduciary Net Position 9,222,802 12,569,126 (4,257,374) 176,584 22,953,522 Plan Fiduciary Net Position - Beginning of Year 177,717,199 165,148,073 169,405,447 169,228,863 146,281,803 Plan Fiduciary Net Position - End of Year (b) $ 186,940,001 $ 177,717,199 $ 165,148,073 $ 169,405,447 $ 169,235,325 Net Pension Liability - Ending (a)-(b) $ 88,965,518 $ 87,229,753 $ 76,710,464 $ 66,561,757 $ 67,053,271 Plan fiduciary net position as a percentage
of the total pension liability 67.76% 67.08% 68.28% 71.79% 71.62% Covered payroll $ 15,669,261 $ 14,020,481 $ 15,555,046 $ 17,232,219 $ 17,126,518 Net pension liability as percentage of
covered payroll 567.77% 622.16% 493.15% 386.26% 391.52% Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term ex
without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

Inflation was reduced from 2.75% to 2.50%.

From fiscal year June 30, 2019 to June 30, 2020:

There were no significant changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no significant changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no significant changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%, and the inflation rate decreased from 2.5% to 2.3%. * Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

CALPERS SAFETY POLICE PENSION PLANS
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (128)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Actuarially determined contribution $ 11,554,507 $ 10,508,925 $ 9,753,264 $ 9,081,466 Contributions in relation to the
actuarially determined contributions (11,554,507) (10,508,925) (9,753,264) (9,081,466) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 16,990,529 $ 15,488,312 $ 15,924,804 $ 16,359,278 Contributions as a percentage of covered payroll 68.01% 67.85% 61.25% 55.51% Notes to Schedule:

Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017
Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.500% 2.500% 2.625%
Salary increases (2) (2) (2) (2)
Investment rate of return 6.9% (3) 7.00% (3) 7.00% (3) 7.25% (3) Retirement age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) The probabilities of retirement are based on the 2010 CalPERS Experience Study report. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

CALPERS SAFETY POLICE PENSION PLANS (CONTINUED)
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (129)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Actuarially determined contribution $ 8,203,564 $ 7,293,109 $ 6,100,953 $ 5,502,842 $ 5,729,090 Contributions in relation to the
actuarially determined contributions (8,203,564) (7,293,109) (6,100,953) (5,502,842) (5,729,090) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 16,273,075 $ 15,669,261 $ 14,020,481 $ 15,555,046 $ 17,232,219 Contributions as a percentage of covered payroll 24.16% 46.54% 43.51% 35.38% 33.25% Notes to Schedule:

Valuation Date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value 15-Year Smoothed
Market Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) The probabilities of retirement are based on the 2010 CalPERS Experience Study report. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE PLAN’S NET PENSION LIABILITY

AND RELATED RATIOS AS OF THE MEASUREMENT DATE
CALPERS SAFETY FIRE – COST SHARING PENSION PLAN
LAST TEN YEARS*
See accompanying Notes to Required Supplementary Information. (130)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Plan’s proportion of the net pension liability/(asset) 1.2672% 1.6843% 1.1714% 1.1737% Plan’s proportionate share of the net pension
liability/(asset) $ 59,108,788 87,075,506 $ $ 78,043,509 $ 73,267,837 Plan’s covered payroll $ 11,264,741 $ 11,458,176 $ 11,236,079 $ 11,685,352 Plan’s proportionate share of the net pension
liability/(asset) as a percentage of its
covered payroll 772.99% 515.87% 694.58% 627.01%
Plan’s proportionate share of the fiduciary net
position as a percentage of the Plan’s
total pension liability 61.27% 72.47% 62.55% 75.26%
Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%, and the inflation rate decreased from 2.5% to 2.3%. * Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE PLAN’S NET PENSION LIABILITY

AND RELATED RATIOS AS OF THE MEASUREMENT DATE
CALPERS SAFETY FIRE – COST SHARING PENSION PLAN (CONTINUED) LAST TEN YEARS*
See accompanying Notes to Required Supplementary Information. (131)
June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Fiscal Year Ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plan’s proportion of the net pension liability/(asset) 1.1777% 1.1421% 1.1758% 1.2449% 0.7390% Plan’s proportionate share of the net pension
liability/(asset) $ 68,239,700 69,104,402 $ 60,895,072 $ $ 51,295,415 $ 45,980,620 Plan’s covered payroll $ 11,156,660 $ 10,848,464 $ 10,699,018 $ 10,382,054 $ 10,161,327 Plan’s proportionate share of the net pension
liability/(asset) as a percentage of its
covered payroll 619.40% 629.03% 569.17% 494.08% 452.51% Plan’s proportionate share of the fiduciary net
position as a percentage of the Plan’s
total pension liability 75.26% 68.81% 75.87% 79.82% 78.40% Notes to Schedule:

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expec
without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no significant changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.

From fiscal year June 30, 2021 to June 30, 2022:

There were no changes in assumptions.

From fiscal year June 30, 2022 to June 30, 2023:

The discount rate was reduced from 7.15% to 6.90%, and the inflation rate decreased from 2.5% to 2.3%. * Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS
CALPERS SAFETY FIRE – COST SHARING PENSION PLAN
LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (132)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Actuarially determined contribution $ 8,944,875 $ 8,084,528 $ 7,467,695 $ 6,804,672 Contributions in relation to the
actuarially determined contributions (8,944,875) (8,084,528) (7,467,695) (6,804,672) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 12,711,898 $ 11,264,741 $ 11,458,176 $ 11,236,079 Contributions as a percentage of covered payroll 70.37% 71.77% 65.17% 60.56% Notes to Schedule:

Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017
Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.50% 2.50% 2.63%
Salary increases (2) (2) (2) (2)
Investment rate of return 6.90% (3) 7.00% (3) 7.00% (3) 7.25% (3) Retirement age (4) (4) (4) (4)
Mortality (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) The probabilities of retirement are based on the 2010 CalPERS Experience Study report. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS
CALPERS SAFETY FIRE – COST SHARING PENSION PLAN (CONTINUED) LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (133)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Actuarially determined contribution $ 6,089,508 $ 5,446,909 $ 4,917,209 $ 3,672,002 $ 3,535,869 Contributions in relation to the
actuarially determined contributions (6,089,508) (5,446,909) (4,917,209) (3,672,002) (3,535,869) Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 11,685,352 $ 11,156,660 $ 10,848,464 $ 10,699,018 $ 10,382,054 Contributions as a percentage of covered payroll 24.16% 48.82% 45.33% 34.32% 34.06% Notes to Schedule:

Valuation Date 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to Determine Contribution Rates:

Actuarial cost method Entry age Entry age Entry age Entry age Entry age Amortization method (1) (1) (1) (1) (1)
Asset valuation method Fair Value Fair Value Fair Value Fair Value 15-Year Smoothed
Market Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75%
Salary increases (2) (2) (2) (2) (2)
Investment rate of return 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement age (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) The probabilities of retirement are based on the 2010 CalPERS Experience Study report. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
* Fiscal year 2015 was the first year of implementation and therefore only nine years are shown.

CITY OF SANTA BARBARA

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
See accompanying Notes to Required Supplementary Information. (134)
Fiscal Year Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Period Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Retiree Medical Benefits and Implied Subsidy
of Retiree Health Insurance Premiums
Total OPEB Liability:

Service cost $ 2,842,600 $ 2,914,906 $ 1,163,015 $ 1,072,000 $ 1,095,000 $ 1,207,000 Interest on total OPEB liability 1,008,996 1,087,405 708,978 769,000 702,000 574,000 Differences between expected and actual
experience 2,377,732 - - (973,000) - -
Changes in assumptions (8,338,795) (7,582,037) 8,962,160 486,000 (403,000) (1,015,000) Changes in benefits - 17,472,095 - - - -
Benefit payments, including refunds
of employee contributions (1,288,904) (1,144,612) (1,077,000) (1,113,000) (1,094,000) (1,220,000) Net Change in Total OPEB Liability (5,776,103) (2,346,606) 27,229,248 241,000 300,000 (454,000) Total OPEB Liability - Beginning of Year 44,514,642 46,861,248 19,632,000 19,391,000 19,091,000 19,545,000 Total OPEB Liability - End of Year (a) $ 38,738,539 $ 44,514,642 $ 46,861,248 $ 19,632,000 $ 19,391,000 $ 19,091,000 Covered employee payroll $ 106,919,079 $ 106,214,415 $ 106,214,415 $ 104,812,000 $ 104,063,000 $ 99,027,000 Total OPEB liability as percentage of
covered employee payroll 36.23% 41.91% 44.12% 18.73% 18.63% 19.28% Sick Leave Retiree Benefits
Total OPEB Liability:

Service cost $ 700,761 $ 565,386 $ 457,457 $ 435,000 $ 440,000 $ 474,000 Interest on total OPEB liability 209,205 162,185 244,438 277,000 260,000 212,000 Differences between expected and actual
experience 1,099,518 - 497,075 (165,000) - -
Changes in assumptions (676,426) (122,511) - 132,000 (105,000) (265,000) Changes in benefits 1,474,847 - - - - -
Benefit payments, including refunds
of employee contributions (850,860) (1,085,312) (819,000) (936,000) (453,000) (628,000) Net Change in Total OPEB Liability (617,320) 2,094,113 379,970 (257,000) 142,000 (207,000) Total OPEB Liability - Beginning of Year 9,410,083 7,315,970 6,936,000 7,193,000 7,051,000 7,258,000 Total OPEB Liability - End of Year (a) $ 8,792,763 $ 9,410,083 $ 7,315,970 $ 6,936,000 $ 7,193,000 $ 7,051,000 Covered employee payroll $ 106,463,274 $ 101,076,700 $ 89,727,663 $ 88,659,000 $ 86,545,000 $ 83,539,000 Total OPEB liability as percentage of
covered employee payroll 8.26% 9.31% 8.15% 7.82% 8.31% 8.44% Notes to Schedule:

There are no assets accumulated in a trust that meets the criteria of GASB codification to pay related benefits for the OPEB plan.

Benefit Changes:

The City changed to CalPERS healthcare plan (PEMHCA) effective January 1, 2020, which resulted in a significant increase to the Total OPEB liability for the year ended June 30, 2021.

Changes in Assumptions:

From fiscal year June 30, 2017 to June 30, 2018:

Discount rate was changed from 2.85% to 3.58%.

From fiscal year June 30, 2018 to June 30, 2019:

Discount rate was changed from 3.58% to 3.87%.

From fiscal year June 30, 2019 to June 30, 2020:

Discount rate was changed from 3.87% to 3.50%.

From fiscal year June 30, 2020 to June 30, 2021:

Discount rate was changed from 3.50% to 2.21%.

From fiscal year June 30, 2021 to June 30, 2022:

Discount rate was changed from 2.21% to 2.16%.

From fiscal year June 30, 2021 to June 30, 2022:

Discount rate was changed from 2.16% to 3.54%.
* Fiscal year 2018 was the first year of implementation and therefore only six years are shown.

CITY OF SANTA BARBARA

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Required Supplementary Information. (135)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes 135,562,739 $ 135,562,739 $ 145,130,220 $ 9,567,481 $ Franchise Fees 4,007,090 4,007,090 4,253,814 246,724
Intergovernmental 1,315,638 973,198 2,742,141 1,768,943 Charges for Services 28,292,410 29,075,565 28,765,424 (310,141) Use of Money and Property 1,129,554 1,129,554 1,181,929 52,375 Fines and Forfeitures 2,850,253 2,850,253 1,322,376 (1,527,877) Other Revenue 10,981,558 11,041,838 11,446,367 404,529
Total Revenues 184,139,242 184,640,237 194,842,271 10,202,034

EXPENDITURES
Current:

Mayor and City Council 3,324,888 3,369,956 3,273,811 96,145 City Attorney 5,670,041 4,400,898 4,242,863 1,427,178
City Administration 3,545,026 4,138,516 3,609,617 528,899 Human Resources 2,356,436 3,047,913 2,574,360 473,553
Finance 7,194,528 7,272,532 7,125,980 146,552
Public Safety 87,468,246 85,737,556 82,685,343 4,782,903 Public Works 10,955,084 11,325,708 10,097,007 1,228,701 Community Services 28,752,060 29,791,450 27,170,561 2,620,889 Community Development 10,417,398 10,792,610 14,111,285 (3,318,675) Sustainability and Resilience 155,445 75,245 16,610 58,635 Debt Service:

Principal Retirement - - 480,344 (480,344)
Interest and Fiscal Charges - - 48,734 (48,734)
Total Expenditures 156,839,319 162,952,217 155,436,515 7,515,702

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 27,299,923 21,688,020 39,405,756 17,717,736

OTHER FINANCING SOURCES (USES)
Subscription Obligation - - 224,197 224,197
Transfers In 562,510 708,684 667,954 (40,730)
Transfers Out (30,608,544) (38,458,267) (36,102,778) 2,355,489 Total Other Financing
Sources (Uses) (30,046,034) (37,749,583) (35,210,627) 2,538,956 NET CHANGE IN FUND BALANCE (2,746,111) (16,061,563) 4,195,129 20,256,692 Fund Balance - Beginning of Year 51,568,135 51,568,135 51,568,135 - FUND BALANCE - END OF YEAR $ 48,822,024 $ 35,506,572 $ 55,763,264 $ 20,256,692 Budgeted Amounts

CITY OF SANTA BARBARA

BUDGETARY COMPARISON SCHEDULE

AFFORDABLE HOUSING SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Required Supplementary Information. (136)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Use of Money and Property 1,377,700 $ 1,377,700 $ 1,110,953 $ (266,747) $

EXPENDITURES
Current:

Community Development 1,302,955 2,242,955 1,175,531 1,067,424 NET CHANGE IN FUND BALANCE 74,745 (865,255) (64,578) 800,677 Fund Balance - Beginning of Year 67,883,756 67,883,756 67,883,756 - FUND BALANCE - END OF YEAR $ 67,958,501 $ 67,018,501 $ 67,819,178 $ 800,677 Budgeted Amounts

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2023
(137)
NOTE 1 BUDGETARY INFORMATION
A two-year financial plan is prepared from which annual budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund and certain special revenue funds. Effective fiscal control for debt service is achieved through bond indenture provisions. While budgets are prepared for the City’s capital projects, capital projects generally span more than one year and are effectively controlled at the project level.

In February of each year, departments submit their proposed budgets to the City Administrator. These proposals are reviewed and considered and adjusted as necessary based on funding limitations and priorities. In mid-April, the City Administrator presents a recommended budget to the City Council. From April through mid-June, public hearings are held, and the recommended budget is reviewed in detail with the Council and Finance Committee. The budget is adopted by June 30.

The appropriated budget is prepared by fund, department, and program. Budgets are monitored at varying levels of classification detail; however, expenditures cannot legally exceed appropriations at the department level for the General Fund and at the fund level for all other legally budgeted funds. Department heads may make transfers of appropriations between line items within a program and across programs if they are within the same major object category (i.e., Salaries & Benefits, Supplies & Services, Capital, etc.). The City Administrator is authorized to transfer amounts within individual departmental budgets, both between programs and between major object categories. All other adjustments to appropriations that change the total of a department (within the General Fund) or fund must be approved by Council. The FEMA Reimbursement Fund, Library Gift Fund and Canine Unit Fund did not have legally adopted budgets during the current year.

Budgeted amounts, as shown, reflect the originally adopted budget and the final budget that includes re-appropriated prior year encumbrances as well as any approved revisions as detailed below. The original and amended operating budget for the General Fund is shown in the table below.

Originally Adopted Budget $ 187,447,863
Re-appropriated Prior Year Encumbrances 1,803,282
Amendments 12,159,339
Amended Budget $ 201,410,484
Budgeted amendments in the General Fund totaled $14.0 million. $1.8 million was carried forward from Fiscal Year 2022 (FY22) as encumbrances made in that year. The remaining $12.2 million was related to City Council approved FY23 budget amendments. The largest change was $5.7 million carried forward from FY22 associated with the American Rescue Plan Act (ARPA) federal emergency grant to maintain services and address costs related to the COVID-19 public health emergency.

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2023
(138)
NOTE 1 BUDGETARY INFORMATION (CONTINUED)
The second largest amendment was related to a $4.0 million transfer to the Self Insurance Fund (SIF) to help stabilize the SIF reserves further to fund City's insurance programs and reduce future funding challenges. Additional notable budget amendments included $1.2 million for Short-Term Rental Enforcement, $0.6 million related to Professional Service Agreements for Permit, Plan Check, and Inspection services, $0.25 million to replenish the Human Services Grant Fund (resolution 22‐125), $0.2 million for Tree Replacement Maintenance funded by a litigation settlement, and $0.18 million related to the purchase of Police Service Weapons. The City’s Affordable Housing Fund had an originally Adopted Fiscal Year 2023 Budget of $1.3 million that was amended by $0.9 million to an Amended Budget of $2.2 million. The $0.9 million increase was to fund a property acquisition loan for an Affordable Housing Project located at 602 and 619 Kentia Avenue to preserve affordable housing units for current special needs/disabled Low-Income residents to prevent the possibility of the property being sold on the open market and the tenants losing their housing.

NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital assets. The City defines infrastructure as the basic physical assets including the streets system, water and wastewater treatment plants, drainage systems, bridges, and sidewalks. Each major infrastructure network can be divided into subsystems.

For example, the street network can be divided into concrete and asphalt pavements, curbs and gutters, sidewalks, streetlights, traffic control devices, landscaping and land. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.

The City has elected to use the “Modified Approach” as defined by GASB Statement No. 34 for infrastructure reporting for its Streets Pavement System. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements:
 The City manages the eligible infrastructure capital assets using an asset management system with the characteristics of (1) an up-to-date periodic inventory is performed; (2) condition assessments and summary of results using a measurement scale is completed, and (3) annual amounts to maintain and preserve the eligible infrastructure capital assets at the established condition assessment level are estimated.
 The City documents that the eligible infrastructure capital assets are being preserved at the established and disclosed condition assessment level.

The pavement network within the City has approximately 245 miles of paved surfaces, comprised of 126 miles of residential streets, 47 miles of principal arterial and minor arterial streets, 69 miles of collector streets and three miles of alleys. This equates to almost 41 million square feet of pavement.

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2023
(139)
NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (CONTINUED)
The City has developed a Pavement Management System (PMS) to inventory and document the physical condition of the City’s street network, including a pavement preservation program. Every two years the City updates a Pavement Management System Report, which identifies and documents the updated condition of the City’s street network.

City-owned streets are classified based on land use, access, and traffic utilization into the following five classifications: principal arterial, minor arterial, collector, residential, and alley.

A condition assessment is performed, through physical street inspections, as part of each biennial report update covering at least one-third of the City’s streets on a rotating basis. As part of the report, each street segment is assigned a condition rating based on a variety of potential defects.

A Pavements Condition Index (PCI) rating, a nationally recognized index, is calculated for each street segment and is expressed in a continuous scale from 0 to 100, with 100 being a brand new street and 0 being a badly deteriorated street with virtually no remaining life. The following PCI thresholds, which are generally accepted industry standards, were assigned to each street segment:

Condition Rating
Excellent/Good 71 to 100
At Risk 51 to 70
Poor 25 to 50
Very Poor/Failed 0 to 24
The City’s Pavement Management System provides staff with current technical data to target a desirable level of pavement performance, while optimizing the expenditure of limited fiscal resources. The following table summarizes the average citywide PCI biennially reported since 2004.

Condition Rating
2004 72
2006 71
2008 71
2010 69
2012 63
2014 64
2016 61
2018 61
2020 62
2022 63
2024 66

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2023
(140)
NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (CONTINUED)
Prior to 2012, the City previously used the then industry standard MicroPAVER pavement management software, but in 2012 transitioned to the StreetSaver pavement management software, which is widely used throughout California. The StreetSaver program has several advantages over MicroPAVER, one being the fact that StreetSaver provides PCI information in real-time. StreetSaver utilizes a street segment’s actual inspection and maintenance history, in conjunction with standard pavement deterioration curves, to provide a real-time PCI. Real-time PCI information, as reported by StreetSaver, is more accurate than PCI information based on a past inspection or maintenance and repair treatment, as reported by MicroPAVER. This real-time PCI information provides the City with the greatest opportunity to effectively manage the PMS and accurately report the current condition of the street network.

As a result of this software change coupled with ongoing budgetary constraints, the average citywide PCI dropped significantly between 2010 (PCI 69) and 2012 (PCI 63). The PCI had generally been declining since 2002 due to budgetary constraints.

PCI rating levels in the mid 60’s to low 70’s range allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at posted speeds. The City’s formal policy with regard to pavement condition levels is to maintain a minimum average rating of no less than 60 (“At Risk”) for all streets. This PCI was selected because there is a significant cost increase to maintain streets averaging below a PCI of 60.

In the most recent Pavement Management System report that was run for 2023, the City’s street network was rated an average PCI index value of 66 (“At Risk”) with the detail condition as follows:

Approximate
Condition PCI Rating Percent of Streets
Excellent/Good 71-100 43
At Risk 51-70 32
Poor 25-50 22
Very Poor/Failed 0-24 3
In general, streets are constantly deteriorating resulting from the following four factors:
(1) traffic using the streets; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development interests trenching operations; and (4) water damage from natural precipitation and other urban runoff. The City is continuously taking actions to minimize the deterioration through short-term maintenance activities such as pothole patching.

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2023
(141)
NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (CONTINUED)
In January 2014, the former State Route 225 was relinquished to the City from the State, adding over 4.5 centerline miles of primary arterial roadway to the City’s network. This equates to nearly 1.4 million additional square feet of asphalt pavement. The additional roadway segments were inspected in summer 2014 and were included in the analyses used for the 2014 report. Caltrans micro-surfaced the entire route in summer 2011 and as a result, the roadway segments were in “good/excellent” condition, with PCIs generally in the 80s. As a result of adding a large amount of square footage with relatively high PCIs, the citywide PCI increased slightly from a PCI of 63 in 2012 to a PCI of 64 in 2014. While this addition had a short-term positive effect on the citywide PCI, over the long-term, the unfunded backlog of roadwork will be increased due to the increase in pavement square footage requiring maintenance.

In Fiscal Year 2017, the PCI had fallen below the established condition assessment level with a citywide PCI of 59. The City addressed the issue by committing to increase annual expenditures on street maintenance projects. On November 7, 2017, a 1% general sales tax measure (Measure C) was approved, with significant community support for infrastructure needs, which will generate the necessary funds required to improve the citywide PCI rating.

In Fiscal Year 2018, expenditures on street maintenance increased by more than $1.0 million, in part due to Measure C. In Fiscal Year 2019, expenditures increased significantly by nearly three times Fiscal Year 2018 expenditures due to Measure C revenues.

During Fiscal Year 2020, the world faced an unprecedented global event, as the impacts of COVID-19 unfolded. The impacts of the pandemic were substantial to revenues across the City. Thanks to delinquent collections, Measure C revenues were not impacted to the degree that other revenues such as Transient Occupancy Taxes. However, in response to cash flow concerns citywide and the uncertainty of how revenues would be impacted, almost $6 million in various Measure C project budgets were reduced from the Fiscal Year 2020 budget. Budget reductions were also taken into account for Fiscal Year 2021 and Fiscal Year 2022 although Measure C revenues came in $2.0 million higher than expected; the funds were committed to competing City priorities.

In Fiscal Year 2023, the City expended $13.1 million on street maintenance including both construction and soft costs (design, construction management, inspection, and required concrete improvements etc.). Additionally, the City hired a pavement engineering consultant to perform city-wide pavement inspections and reevaluate our pavement conditions based on actual conditions vs. the pavement management system calculated PCI based on work performed. The City’s street network was rated an average PCI index value of 66.

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2023
(142)
NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (CONTINUED)
The City estimates that to reach and maintain a PCI rating of 70, approximately $48 million would have needed to be spent in 2023, and an average of $17 million would need to be budgeted for the next four years (2025 – 2028). The amount of deferred maintenance would have been reduced to $95 million in 2023 and increased to $104 million by 2028. Even with the significant increase in pavement maintenance funding made possible through Measure C, deferred maintenance costs will continue to increase for the next several years while the City improves its PCI toward 70.

A schedule of estimated annual amount calculated to maintain and preserve its streets at the current PCI rating compared to actual expenditures for street maintenance for the last five years is presented below:

Estimate
(to Maintain
Fiscal Year Current PCI) Expenditures PCI Rating
2018-2019 8,400,000 $ 11,530,346 $ 61
2019-2020 7,300,000 15,033,630 62
2020-2021 7,300,000 13,867,744 62
2021-2022 8,200,000 10,167,491 63
2022-2023 12,000,000 13,128,806 66
The City’s ongoing street preservation program was developed with the goal of improving the condition rating of City streets to a score of 70. The City considers a score of 70-75 to be an industry standard maintenance level that is the most cost-effective condition to maintain.

Due to a lack of available funds for many years, the overall condition of the road network dropped as evidenced by the PCI rating to a point where less expensive preventative maintenance treatments, such as slurry seal, are no longer effective for many streets.

As a result, more expensive pavement rehabilitation treatments are required, such as grind and overlay, thus significantly increasing the cost to maintain the road network. Although the PCI has increased by a few points over the past several years, more expensive pavement rehabilitation treatments will continue to be required until the PCI reaches 70, when less expensive preventative maintenance treatments will be effective for the majority of the City’s street network.

Funding for street pavement maintenance projects continues to increase as the City is committed to improving this critical infrastructure. The Fiscal Year 2024 adopted budget includes $23.8 million in appropriations for street paving projects, which is designed to ensure a continued improvement in the PCI rating. Additionally, the Measure C Oversight Committee has established the maintenance of City Streets with the goal to reach and maintain a 75 in 5-years as one of their top five priorities to fund. (143)
(144)

NONMAJOR GOVERNMENTAL FUNDS
(145)
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CITY OF SANTA BARBARA, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
(146)
Special Revenue Funds
Traffic Safety Fund – To account for the receipt of fines collected pursuant to the California Vehicle Code. The State of California Government Code restricts use of these funds to traffic control devices, equipment and supplies related to traffic control or traffic safety and maintenance of public streets. The funds may not be used to pay compensation of traffic or police officers.

Creek Restoration/Water Quality Fund – To account for funds received from a 2% tax increase in the City’s transient occupancy tax. The proceeds are restricted for use in the City’s Creeks Restoration and Water Quality Improvement Program. Measure B was approved by the voters of Santa Barbara County in an election held on November 7, 2000. The tax became effective on January 1, 2001.

Wildland Fire Suppression Fund – To account for funds received as property tax assessments to pay for wildland fire suppression activity. These funds are restricted and expended for wildland fire suppression.

Permanent Local Housing Allocation Fund – To account for receipt and disbursement of funds received through the Permanent Local Housing Allocation (PLHA) program. The PLHA program was enacted as part of the Building Homes and Jobs Act (California Senate Bill No. 2) in 2018. Its purpose is to provide ongoing funding to local governments for housing-related projects and programs that help address their unmet housing needs.

Transportation Development Fund – To account for the receipt and disbursement of the City’s share of gasoline sales tax pursuant to the Transportation Development Act of 1971. These funds are restricted for use in support of alternative transportation, including sidewalks and bikeways.

Community Development Block Grant Fund – To account for the receipt and disbursement of the City’s Community Development Block Grant funds.

Police – Asset Forfeiture Fund – To account for assets confiscated by police special operations. These funds are restricted to use in support of police operations.

County Library Fund – To account for funds received and expended for library services on behalf of the County (non-City) residents.

Measure A Fund – To account for funds received from a one-half cent sales tax levied Countywide pursuant to Measure A. This measure was approved by the voters of Santa Barbara County in an election held on November 4, 2008, and became effective on April 1, 2010. The proceeds are restricted to transportation uses.

Miscellaneous Grants Fund – To account for resources received from various granting agencies.

Street Sweeping Fund – To account for funds received and expended from street sweeping parking violations revenue in connection with the City’s Consolidated Clean Sweep Program which provides for sweeping of City streets in both commercial and residential neighborhoods.

HOME Program Fund – To account for the receipt and disbursement of the City’s Federal HOME grant funds.

CITY OF SANTA BARBARA, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(147)
FEMA Reimbursement Fund – To account for costs incurred as a result of the three federally declared disasters from January and February 2017 winter storms, and the Thomas Fire and debris flow in December 2017 and January 2018.

Police – Supplemental Law Enforcement Fund – To account for State voter-approved grant funds (AB 3229) restricted to public safety and law enforcement.

Streets Fund – To account for receipt and expenditure of streets-committed utility users’ tax for street maintenance and operating costs.

Police CAD-RMS Support Fund – To account for receipts and expenditures from participating agencies related to the operation of the systems the multi-jurisdictional Compute Aided Dispatch (CAD) and Records Management System (RMS).

Library Gifts Fund – To account for gifts and bequests made to the City library. Funds are used for library functions.

Canine Unit Fund – To account for contributions made for the Police’s Canine Unit program.

Capital Project Funds
General Capital Improvements Fund – To account for all capital projects financed by the General Fund.

Measure C Capital Fund – To account for capital projects financed by Measure C sales tax revenue.

Measure A Capital Fund – To account for capital projects financed by Measure A.

Street Capital Improvements Fund – To account for street-related capital projects not financed by Grants.

Creeks Restoration Capital Improvement Fund – To account for creeks restoration capital improvements funded by Measure B.

CITY OF SANTA BARBARA

COMBINING BALANCE SHEET

OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2023
(148)
Creek Wildland Permanent
Traffic Restoration/Water Fire Local Housing Transportation Safety Quality Suppression Allocation Development
ASSETS
Pooled Cash and Investments $ 4,245 $ 3,208,284 $ 138,625 $ 293,508 - $ Accounts Receivable, Net 15,080 - - - -
Loans Receivable - - - - -
Lease Receivable - - - - -
Due from Other Governments 489,539 - 652,689 -
Total Assets $ 19,325 $ 3,697,823 $ 138,625 $ 652,689 $ 293,508

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES

AND FUND BALANCES

LIABILITIES
Accounts Payable $ 2,555 $ 84,966 $ 3,233 $ 192,680 $ - Salaries and Benefits Payable - 47,762 4,330 3,009 -
Unearned Revenue - - - - -
Deposits - - - - -
Due to Other Governments - - - - -
Interfund Payables - - 457,000 - -
Advances from Other Funds - - - - -
Total Liabilities 2,555 132,728 7,563 652,689 -

DEFERRED INFLOWS OF

RESOURCES
Leases - - - - -
Unavailable Revenue - - - 652,689 -
Total Deferred Inflows
of Resources - - - 652,689 -

FUND BALANCES (DEFICITS)
Restricted for:

Public Safety - 131,062 - - -
Public Works 16,770 3,565,095 - 293,508 -
Community Services - - - - -
Community Development - - - - -
Capital Improvements - - - - -
Committed to:

Capital Improvements - - - - -
Unassigned - - - (652,689) -
Total Fund Balances (Deficits) 16,770 3,565,095 131,062 (652,689) 293,508 Total Liabilities, Deferred
Inflows of Resources and
Fund Balances (Deficits) $ 19,325 $ 3,697,823 $ 138,625 $ 652,689 $ 293,508 Special Revenue Funds

CITY OF SANTA BARBARA

COMBINING BALANCE SHEET

OTHER SPECIAL REVENUE FUNDS (CONTINUED)
JUNE 30, 2023
(149)
Community
Development Police - Asset Miscellaneous Street HOME
Block Grant Forfeiture County Library Measure A Grants Sweeping Program ASSETS
Pooled Cash and Investments $ 676,471 $ 710,923 $ 22,783 $ 1,405,747 $ 563,311 $ 49,285 $ - Accounts Receivable, Net - - - - - - -
Loans Receivable 3,170,789 - - - - - 9,798,813
Lease Receivable - - - - - - -
Due from Other Governments 352,171 198 - 466,140 2,735,994 - 127,782 Total Assets $ 4,199,431 $ 711,121 $ 22,783 $ 1,871,887 $ 3,299,305 $ 49,285 $ 9,926,595

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES

AND FUND BALANCES

LIABILITIES
Accounts Payable $ 255,412 $ 10,073 $ 4,603 $ 34,558 $ 314,097 $ 45,396 $ 86,796 Salaries and Benefits Payable 3,068 95,351 8,918 33,847 25,362 3,889 4,817 Unearned Revenue - - - - 1,115,059 - -
Deposits - 220,843 - - - - -
Due to Other Governments 3,170,789 - - - - - 9,798,813
Interfund Payables - - - - - - 36,169
Advances from Other Funds - - - - - - -
Total Liabilities 3,429,269 326,267 13,521 68,405 1,454,518 49,285 9,926,595

DEFERRED INFLOWS OF

RESOURCES
Leases - - - - - - -
Unavailable Revenue 10,806 - - 452,323 - - -
Total Deferred Inflows
of Resources 10,806 - - - 452,323 - -

FUND BALANCES (DEFICITS)
Restricted for:

Public Safety 384,854 - - 218,887 - - -
Public Works - - - 1,803,482 - - -
Community Services - - 9,262 1,595,792 - - -
Community Development 759,356 - - - - - -
Capital Improvements - - - - - - -
Committed to:

Capital Improvements - - - - - - -
Unassigned - - - - (422,215) - -
Total Fund Balances (Deficits) 384,854 759,356 9,262 1,803,482 1,392,464 - - Total Liabilities, Deferred
Inflows of Resources and
Fund Balances (Deficits) $ 4,199,431 $ 711,121 $ 22,783 $ 1,871,887 $ 3,299,305 $ 49,285 $ 9,926,595 Special Revenue Funds (Continued)

CITY OF SANTA BARBARA

COMBINING BALANCE SHEET

OTHER SPECIAL REVENUE FUNDS (CONTINUED)
JUNE 30, 2023
(150)
Police Police
FEMA Supplemental Law CAD-RMS Library Canine
Reimbursement Enforcement Streets Support Gift Unit
ASSETS
Pooled Cash and Investments $ - $ 8,047 $ 1,262,323 $ 400,272 $ 4,724,116 $ 38,361 Accounts Receivable, Net - - - - - -
Loans Receivable - - - - - -
Lease Receivable - - 355,577 - - -
Due from Other Governments 987,996 - 661,635 - - -
Total Assets $ 987,996 $ 8,047 $ 2,279,535 $ 400,272 $ 4,724,116 $ 38,361

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES

AND FUND BALANCES

LIABILITIES
Accounts Payable $ 517,395 $ 8,047 $ 92,954 $ 7,346 $ - $ - Salaries and Benefits Payable - 156,819 - - - -
Unearned Revenue 21,584 - - - - -
Deposits - - - - - -
Due to Other Governments - - - - - -
Interfund Payables 2,591,558 - - - - -
Advances from Other Funds - - - - - -
Total Liabilities 3,130,537 8,047 249,773 7,346 - -

DEFERRED INFLOWS OF

RESOURCES
Leases - - 341,468 - - -
Unavailable Revenue 959,170 - - - - -
Total Deferred Inflows
of Resources 959,170 - 341,468 - - -

FUND BALANCES (DEFICITS)
Restricted for:

Public Safety - - 392,926 - - -
Public Works 44,098 - 1,688,294 - - -
Community Services - - - 4,724,116 - 38,361
Community Development - - - - - -
Capital Improvements - - - - - -
Committed to:

Capital Improvements - - - - - -
Unassigned (3,145,809) - - - - -
Total Fund Balances (Deficits) (3,101,711) 1,688,294 - 392,926 4,724,116 38,361 Total Liabilities, Deferred
Inflows of Resources and
Fund Balances (Deficits) $ 987,996 $ 8,047 $ 2,279,535 $ 400,272 $ 4,724,116 $ 38,361 Special Revenue Funds

CITY OF SANTA BARBARA

COMBINING BALANCE SHEET

OTHER SPECIAL REVENUE FUNDS (CONTINUED)
JUNE 30, 2023
(151)
Capital Projects Funds Total
General Streets Creek Other
Capital Measure C Measure A Capital Restoration Governmental Improvements Capital Capital Improvements Capital Funds ASSETS
Pooled Cash and Investments $ 3,426,187 $ 43,928,599 $ 4,819,206 $ 4,634,306 $ 9,287,580 $ 79,602,179 Accounts Receivable, Net - - - 12,667 - 27,747
Loans Receivable - - - - - 12,969,602
Lease Receivable - - - - - 355,577
Due from Other Governments 5,112 - - - - 6,479,256
Total Assets $ 3,431,299 $ 43,928,599 $ 4,819,206 $ 4,646,973 $ 9,287,580 $ 99,434,361

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES

AND FUND BALANCES

LIABILITIES
Accounts Payable $ 315,846 $ 3,345,974 $ 57,695 $ 74,649 $ 140,326 $ 5,594,601 Salaries and Benefits Payable - - - - 387,172 -
Unearned Revenue - - - - - 1,136,643
Deposits - - - - - 220,843
Due to Other Governments - - - - - 12,969,602
Interfund Payables - - - - 3,084,727 -
Advances from Other Funds - 1,600,005 - - - 1,600,005
Total Liabilities 315,846 4,945,979 57,695 74,649 140,326 24,993,593

DEFERRED INFLOWS OF

RESOURCES
Leases - - - - - 341,468
Unavailable Revenue 2,137 - - - 2,077,125 -
Total Deferred Inflows
of Resources 2,137 - - - - 2,418,593

FUND BALANCES (DEFICITS)
Restricted for:

Public Safety - - - - 1,127,729 -
Public Works - - - - 9,147,254 16,558,501
Community Services - - - - 6,367,531 -
Community Development - - - - 759,356 -
Capital Improvements - - 4,761,511 - - 4,761,511
Committed to:

Capital Improvements 3,113,316 38,982,620 - 4,572,324 - 46,668,260 Unassigned - - - - - (4,220,713)
Total Fund Balances (Deficits) 38,982,620 3,113,316 4,761,511 4,572,324 9,147,254 72,022,175 Total Liabilities, Deferred
Inflows of Resources and
Fund Balances (Deficits) $ 3,431,299 $ 43,928,599 $ 4,819,206 $ 4,646,973 $ 9,287,580 $ 99,434,361

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2023
(152)
Creek Wildland Permanent
Traffic Restoration/Water Fire Local Housing Transportation Safety Quality Suppression Allocation Development

REVENUES
Taxes $ - $ 5,242,273 $ - $ - $ 103,059
Intergovernmental - - - - -
Fines and Forfeitures 218,885 28,977 - - -
Charges for Services - 205 - - -
Use of Money and Property - 91,740 - - 780
Other - 9,312 303,999 - -
Total Revenues 218,885 5,372,507 303,999 - 103,839

EXPENDITURES
Current:

City Attorney - - - - -
Administrative Services - - - - -
Finance - - - - -
Public Safety - 12,845 264,796 - -
Public Works - 3,397,381 - - -
Community Services - - - - -
Community Development - - - 561,864 -
Sustainability and Resilience - - - - -
Capital Outlay - - - - -
Debt Service:

Principal Retirement - 4,575 - - -
Interest and Fiscal Charges - 15,840 - - -
Total Expenditures 12,845 3,417,796 264,796 561,864 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,954,711 206,040 39,203 (561,864) 103,839

OTHER FINANCING USES
Lease Obligation - 806,982 - - -
Transfers in - - - - -
Transfers out (189,270) (1,852,507) - - -
Total Other Financing Uses (189,270) (1,045,525) - - -
NET CHANGE IN FUND BALANCES 16,770 909,186 39,203 (561,864) 103,839 Fund Balances (Deficits) -
Beginning of Year , as Restated - 2,655,909 91,859 (90,825) 189,669

FUND BALANCES (DEFICITS) -
END OF YEAR $ 3,565,095 16,770 $ 131,062 $ (652,689) $ 293,508 $ Special Revenue Funds

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER SPECIAL REVENUE FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2023
(153)
Community
Development Police - Asset Miscellaneous Street HOME
Block Grant Forfeiture County Library Measure A Grants Sweeping Program

REVENUES
Taxes - $ $ - $ - $ 5,441,037 $ - $ - $ -
Intergovernmental 956,801 51,073 302,441 1,047,295 - - 157,930 Fines and Forfeitures - 35,922 1,291 - - 473,776 -
Charges for Services 90,886 - - - 7,912 - -
Use of Money and Property - 7,604 231 19,502 - - -
Other 246,053 - 126,668 - 2,548,845 - 136,340
Total Revenues 1,202,854 185,485 430,631 5,460,539 3,604,052 473,776 294,270

EXPENDITURES
Current:

City Attorney - - - - - - -
Administrative Services - - - - - - -
Finance - - - - - - -
Public Safety 174,388 - - 306,580 - - -
Public Works - - - 2,034,277 - 714,888 -
Community Services - 510,146 - 759,699 - - -
Community Development 1,546,064 - - 322,136 - - 368,036 Sustainability and Resilience - - - 25,469 - - -
Capital Outlay - - 771 2,317,342 - - -
Debt Service:

Principal Retirement - - - - - - -
Interest and Fiscal Charges - - - - - - -
Total Expenditures 1,546,064 174,388 510,917 2,034,277 3,731,226 714,888 368,036

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (343,210) 11,097 (80,286) 3,426,262 (127,174) (241,112) (73,766)

OTHER FINANCING USES
Lease Obligation - - - - - - -
Transfers in - - - 14,967 - 635,967 -
Transfers out - - - (4,332,810) (16,174) (382,510) -
Total Other Financing Uses - - - (4,332,810) (1,207) 253,457 - NET CHANGE IN FUND BALANCES (343,210) 11,097 (80,286) (906,548) (128,381) 12,345 (73,766) Fund Balances (Deficits) -
Beginning of Year , as Restated 1,102,566 373,757 89,548 2,710,030 1,520,845 (12,345) 73,766

FUND BALANCES (DEFICITS) -
END OF YEAR $ 384,854 759,356 $ 9,262 $ 1,803,482 $ 1,392,464 $ - $ $ - Special Revenue Funds (Continued)

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER SPECIAL REVENUE FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2023
(154)
Police Police
FEMA Supplemental Law CAD-RMS Library Canine
Reimbursement Enforcement Streets Support Gift Unit

REVENUES
Taxes $ - $ - $ 8,190,589 $ - $ - $ -
Intergovernmental 28,827 226,787 4,109,766 87,319 - 651 Fines and Forfeitures - - - - - -
Charges for Services - 284,814 - - - -
Use of Money and Property - (335) 44,258 - - -
Other - - 431,300 - 320,087 20,369
Total Revenues 28,827 226,452 13,060,727 87,319 320,087 21,020

EXPENDITURES
Current:

City Attorney 786 - - - - -
Administrative Services 62 - - - - -
Finance 25,461 - - - - -
Public Safety 80,304 226,452 63,617 - - -
Public Works 670,552 - 10,165,447 - - -
Community Services 619,870 - - - - -
Community Development 184,332 - - - - -
Sustainability and Resilience - - - - - -
Capital Outlay - - - - - -
Debt Service:

Principal Retirement - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 1,581,367 226,452 10,165,447 63,617 - -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,552,540) 2,895,280 - 23,702 320,087 21,020

OTHER FINANCING USES
Lease Obligation - - - - - -
Transfers in - - - - - -
Transfers out - - (2,404,138) - - -
Total Other Financing Uses - - (2,404,138) - - -
NET CHANGE IN FUND BALANCES (1,552,540) 491,142 23,702 - 320,087 21,020 Fund Balances (Deficits) -
Beginning of Year , as Restated (1,549,171) 1,197,152 - 369,224 4,404,029 17,341

FUND BALANCES (DEFICITS) -
END OF YEAR $ - (3,101,711) $ $ 1,688,294 $ 392,926 $ 4,724,116 $ 38,361 Special Revenue Funds

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER SPECIAL REVENUE FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2023
(155)
Total
General Streets Creek Other
Capital Measure C Measure A Capital Restoration Governmental Improvements Capital Capital Improvements Capital Funds

REVENUES
Taxes - $ $ - $ - $ - $ - $ 18,976,958
Intergovernmental 20,803 - - - 6,989,693 -
Fines and Forfeitures - - - - - 758,851
Charges for Services - - - - 383,817 -
Use of Money and Property - - - - 163,780 -
Other 576,980 - - - 4,719,953 -
Total Revenues 597,783 - - - 31,993,052 -

EXPENDITURES
Current:

City Attorney - - - - - 786
Administrative Services - - - - - 62
Finance - - - - - 25,461
Public Safety - - - - 1,128,982 -
Public Works 25,690 - - - 17,008,235 -
Community Services - - - - 1,889,715 -
Community Development - - - - 2,982,432 -
Sustainability and Resilience - - - - - 25,469
Capital Outlay 20,897,791 2,933,040 1,391,403 3,069,384 2,866,283 33,476,014 Debt Service:

Principal Retirement - - - - - 4,575
Interest and Fiscal Charges - - - - - 15,840
Total Expenditures 2,958,730 20,897,791 1,391,403 3,069,384 2,866,283 56,557,571

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,360,947) (20,897,791) (1,391,403) (3,069,384) (2,866,283) (24,564,519)

OTHER FINANCING USES
Lease Obligation - - - - 806,982 -
Transfers in 1,250,838 28,399,413 4,332,086 2,121,157 1,650,000 38,404,428 Transfers out (30,000) - (160,186) - - (9,367,595)
Total Other Financing Uses 1,220,838 28,399,413 4,171,900 2,121,157 1,650,000 29,843,815 NET CHANGE IN FUND BALANCES (1,140,109) 7,501,622 2,780,497 (948,227) (1,216,283) 5,279,296 Fund Balances (Deficits) -
Beginning of Year , as Restated 4,253,425 31,480,998 1,981,014 5,520,551 10,363,537 66,742,879

FUND BALANCES (DEFICITS) -
END OF YEAR $ 38,982,620 3,113,316 $ 4,761,511 $ 4,572,324 $ 9,147,254 $ 72,022,175 $ Capital Projects Fund

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

TRAFFIC SAFETY
YEAR ENDED JUNE 30, 2023
(156)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Fines and Forfeitures 245,000 $ 245,000 $ 218,885 $ (26,115) $

EXPENDITURES
Current:

Public Safety 15,000 15,000 12,845 2,155

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 230,000 230,000 206,040 (23,960)

OTHER FINANCING USES
Transfers Out (230,000) (230,000) (189,270) 40,730
NET CHANGE IN FUND BALANCE - - 16,770 16,770
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ - $ - $ 16,770 $ 16,770
Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

CREEK RESTORATION/WATER QUALITY
YEAR ENDED JUNE 30, 2023
(157)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes $ 4,716,711 $ 4,716,711 $ 5,242,273 $ 525,562
Fines and Forfeitures - - 28,977 28,977
Charges for Services - - 205 205
Use of Money and Property 116,400 116,400 91,740 (24,660) Other 12,402 12,402 9,312 (3,090)
Total Revenues 4,845,513 4,845,513 5,372,507 526,994

EXPENDITURES
Current:

Public Works 3,007,162 3,405,217 3,397,381 7,836
Debt Service:

Principal Retirement - - 4,575 (4,575)
Interest and Fiscal Charges - - 15,840 (15,840)
Total Expenditures 3,007,162 3,405,217 3,417,796 (12,579)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,838,351 1,440,296 1,954,711 514,415

OTHER FINANCING USES
Lease Obligation - - 806,982 806,982
Transfers Out (1,852,507) (1,852,507) (1,852,507) -
Total Other Financing Uses (1,852,507) (1,852,507) (1,045,525) 806,982 NET CHANGE IN FUND BALANCE (14,156) (412,211) 909,186 1,321,397 Fund Balance - Beginning of Year 2,655,909 2,655,909 2,655,909 - FUND BALANCE - END OF YEAR $ 2,641,753 $ 2,243,698 $ 3,565,095 $ 1,321,397 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

WILDLAND FIRE SUPPRESSION
YEAR ENDED JUNE 30, 2023
(158)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Other 299,442 $ 299,442 $ 303,999 $ 4,557 $

EXPENDITURES
Current:

Public Safety 306,326 306,326 264,796 41,530
NET CHANGE IN FUND BALANCE (6,884) (6,884) 39,203 46,087 Fund Balance - Beginning of Year 91,859 91,859 91,859 - FUND BALANCE - END OF YEAR $ 84,975 $ 84,975 $ 131,062 $ 46,087 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

TRANSPORTATION DEVELOPMENT
YEAR ENDED JUNE 30, 2023
(159)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes $ 98,892 $ 99,660 $ 103,059 $ 3,399
Use of Money and Property 1,100 1,100 780 (320)
Total Revenues 99,992 100,760 103,839 3,079

EXPENDITURES
Current:

Public Works 99,992 254,773 - 254,773
NET CHANGE IN FUND BALANCE - (154,013) 103,839 257,852
Fund Balance - Beginning of Year 189,669 189,669 189,669 - FUND BALANCE - END OF YEAR $ 189,669 $ 35,656 $ 293,508 $ 257,852 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2023
(160)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 896,247 $ 1,546,634 $ 956,801 $ (589,833) $ Other - - 246,053 246,053
Total Revenues 596,247 1,246,634 1,448,907 202,273

EXPENDITURES
Current:

Development Services 1,204,528 2,441,134 1,546,064 895,070 NET CHANGE IN FUND BALANCE (608,281) (1,194,501) (97,157) 1,097,344 Fund Balance - Beginning of Year 1,102,566 1,102,566 1,102,566 - FUND BALANCE - END OF YEAR $ 494,286 $ (91,935) $ 1,005,409 $ 1,097,344 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL
POLICE – ASSET FORFEITURE
YEAR ENDED JUNE 30, 2023
(161)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 52,000 $ 52,000 $ 51,073 $ (927) $
Fines and Forfeitures - - 35,922 35,922
Charges for Services 95,000 95,000 90,886 (4,114)
Use of Money and Property - - 7,604 7,604
Total Revenues 147,000 147,000 185,485 38,485

EXPENDITURES
Current:

Public Safety 205,408 245,966 174,388 71,578
NET CHANGE IN FUND BALANCE (58,408) (98,966) 11,097 110,063 Fund Balance - Beginning of Year 373,757 373,757 373,757 - FUND BALANCE - END OF YEAR $ 315,349 $ 274,791 $ 384,854 $ 110,063 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

COUNTY LIBRARY
YEAR ENDED JUNE 30, 2023
(162)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 87,982 $ 318,179 $ 302,441 $ (15,738) $ Fines and Forfeitures 1,550 1,550 1,291 (259)
Use of Money and Property - - 231 231
Other 127,000 127,000 126,668 (332)
Total Revenues 216,532 446,729 430,631 (16,098)

EXPENDITURES
Current:

Community Services 517,809 498,773 510,146 (11,373)
Capital Outlay - 771 771 0
Total Expenditures 517,809 499,544 510,917 (11,373)
NET CHANGE IN FUND BALANCE (301,277) (52,816) (80,286) (27,470) Fund Balance - Beginning of Year 89,548 89,548 89,548 - FUND BALANCE - END OF YEAR $ (211,729) $ 36,732 $ 9,262 $ (27,470) Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

MEASURE A
YEAR ENDED JUNE 30, 2023
(163)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes 5,018,184 $ 5,018,184 $ 5,441,037 $ 422,853 $
Use of Money and Property 27,300 27,300 19,502 (7,798)
Total Revenues 5,045,484 5,045,484 5,460,539 415,055

EXPENDITURES
Current:

Public Works 2,695,617 2,719,285 2,034,277 685,008

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,349,867 2,326,199 3,426,262 1,100,063

OTHER FINANCING USES
Transfers out (2,333,907) (4,332,810) (4,332,810) -
Total Other Financing Uses (2,333,907) (4,332,810) (4,332,810) - NET CHANGE IN FUND BALANCE 15,960 (2,006,611) (906,548) 1,100,063 Fund Balance - Beginning of Year 2,710,030 2,710,030 2,710,030 - FUND BALANCE - END OF YEAR $ 2,725,990 $ 703,419 $ 1,803,482 $ 1,100,063 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

MISCELLANEOUS GRANTS
YEAR ENDED JUNE 30, 2023
(164)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental - $ $ 8,686,078 $ 1,047,295 $ (7,638,783) Charges for Services 19,000 19,402 7,912 (11,490)
Other 97,800 3,978,232 2,548,845 (1,429,387)
Total Revenues 116,800 12,683,712 3,604,052 (9,079,660)

EXPENDITURES
Current:

Public Safety 9,857 1,329,364 306,580 1,022,784
Development Services - 507,263 - 507,263
Community Services 220,922 3,454,054 759,699 2,694,355
Public Works - - 322,136 (322,136)
Sustainability and Resilience - 4,550,000 25,469 4,524,531 Capital Outlay 4,970,451 - 2,317,342 2,653,109
Total Expenditures 230,779 14,811,132 3,731,226 11,079,906

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (113,979) (2,127,420) (127,174) 2,000,246

OTHER FINANCING USES
Transfers In - 700,000 14,967 (685,033)
Transfers out - (16,174) (16,174) -
Total Other Financing Uses - 683,826 (1,207) (685,033)
NET CHANGE IN FUND BALANCE (113,979) (1,443,594) (128,381) 1,315,213 Fund Balance - Beginning of Year 1,520,845 1,520,845 1,520,845 - FUND BALANCE - END OF YEAR $ 1,406,866 $ 77,251 $ 1,392,464 $ 1,315,213 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

STREET SWEEPING
YEAR ENDED JUNE 30, 2023
(165)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Fines and Forfeitures 714,000 $ 714,000 $ 473,776 $ (240,224) $

EXPENDITURES
Current:

Public Works 772,828 773,106 714,888 58,218

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (59,106) (58,828) (241,112) (182,006)

OTHER FINANCING USES
Transfers In 405,130 635,967 635,967 -
Transfers Out (382,510) (382,510) (382,510) -
Total Other Financing Uses 22,620 253,457 253,457 -
NET CHANGE IN FUND BALANCE (36,208) 194,351 12,345 (182,006) Fund Balance (Deficit) - Beginning of Year (12,345) (12,345) (12,345) - FUND BALANCE - END OF YEAR $ (48,553) $ 182,006 $ - $ (182,006) Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

HOME PROGRAM
YEAR ENDED JUNE 30, 2023
(166)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 513,817 $ 1,611,588 $ 157,930 $ (1,453,658) $ Other - - 136,340 136,340
Total Revenues 443,817 1,537,821 430,610 (1,107,211)

EXPENDITURES
Current:

Development Services 581,579 1,651,679 368,036 1,283,643 NET CHANGE IN FUND BALANCE (137,762) (113,858) 62,574 176,432 Fund Balance - Beginning of Year 73,766 73,766 73,766 - FUND BALANCE - END OF YEAR $ (63,996) $ (40,092) $ 136,340 $ 176,432 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL
POLICE – SUPPLEMENTAL LAW ENFORCEMENT
YEAR ENDED JUNE 30, 2023
(167)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 218,104 $ 218,104 $ 226,787 $ 8,683 $ Use of Money and Property - - (335) (335)
Total Revenues 218,104 218,104 226,452 8,348

EXPENDITURES
Current:

Public Safety 245,505 245,505 226,452 19,053
NET CHANGE IN FUND BALANCE (27,401) (27,401) - 27,401
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ (27,401) $ (27,401) $ - $ 27,401 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

STREETS
YEAR ENDED JUNE 30, 2023
(168)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes 7,779,112 $ 7,779,112 $ 8,190,589 $ 411,477 $
Intergovernmental 4,770,485 4,770,485 4,109,766 (660,719) Charges for Services 254,694 254,694 284,814 30,120
Use of Money and Property 36,968 36,968 44,258 7,290
Other 336,822 336,822 431,300 94,478
Total Revenues 13,178,081 13,178,081 13,060,727 (117,354)

EXPENDITURES
Current:

Public Works 10,805,206 10,920,618 10,165,447 755,171

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,372,875 2,257,463 2,895,280 (872,525)

OTHER FINANCING USES
Transfers Out (2,404,138) (2,404,138) (2,404,138) -
Total Other Financing Uses (2,404,138) (2,404,138) (2,404,138) - NET CHANGE IN FUND BALANCE (31,263) (146,675) 491,142 (872,525) Fund Balance - Beginning of Year 1,197,152 1,197,152 1,197,152 - FUND BALANCE - END OF YEAR $ 1,165,889 $ 1,050,477 $ 1,688,294 $ (872,525) Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

POLICE CAD-RMS SUPPORT
YEAR ENDED JUNE 30, 2023
(169)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 87,318 $ 87,318 $ 87,319 $ 1 $

EXPENDITURES
Current:

Public Safety 87,318 88,228 63,617 24,611
NET CHANGE IN FUND BALANCE - (910) 23,702 24,612
Fund Balance - Beginning of Year 369,224 369,224 369,224 - FUND BALANCE - END OF YEAR $ 369,224 $ 368,314 $ 392,926 $ 24,612 Budgeted Amounts
(170)

NONMAJOR PROPRIETARY FUNDS
(171)
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CITY OF SANTA BARBARA, CALIFORNIA

NONMAJOR PROPRIETARY FUNDS
JUNE 30, 2023
(172)
Downtown Parking Fund – To account for the provision of parking services in the downtown area of the City. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, capital acquisition and construction, financing and related debt service, and billing and collection of fees.

Golf Course Fund – To account for the operation of municipal golf course. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, capital acquisition and construction, financing and related debt service, and billing and collection of fees.

CITY OF SANTA BARBARA

COMBINING STATEMENT OF NET POSITION

NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2023
(173)
Downtown Golf
Parking Course Total
ASSETS

CURRENT ASSETS
Pooled Cash and Investments $ 5,236,812 $ 3,478,818 $ 8,715,630 Receivables:

Accounts 137,831 17,435 155,266
Leases 370,840 136,585 507,425
Deposits - 225,000 225,000
Inventories - 131,273 131,273
Total Current Assets 5,745,483 3,989,111 9,734,594

NONCURRENT ASSETS
Leases, Noncurrent 592,358 287,917 880,275
Capital Assets:

Nondepreciable 10,887,513 342,302 11,229,815
Depreciable, Net 23,317,619 2,304,550 25,622,169
Total Noncurrent Assets 34,797,490 2,934,769 37,732,259 Total Assets 40,542,973 6,923,880 47,466,853

DEFERRED OUTFLOWS OF RESOURCES
Pension Related 1,692,324 51,499 1,743,823

LIABILITIES

CURRENT LIABILITIES
Accounts Payable 294,268 406,995 701,263
Salaries and Benefits Payable 165,519 2,740 168,259
Unearned Revenue - 171,888 171,888
Deposits 3,450 22,466 25,916
Lease Payable - 71,625 71,625
Compensated Absences Payable 256,049 - 256,049
Total Current Liabilities 719,286 675,714 1,395,000

NONCURRENT LIABILITIES
Lease Payable, Noncurrent - 41,555 41,555
Compensated Absences Payable 29,053 - 29,053
Net Pension Liability 5,867,454 1,828,766 7,696,220
Total Noncurrent Liabilities 5,896,507 1,870,321 7,766,828 Total Liabilities 6,615,793 2,546,035 9,161,828

DEFERRED INFLOWS OF RESOURCES
Pension Related 17,563 535 18,098
Lease Related 909,944 400,991 1,310,935
Total Deferred Inflows of Resources 927,507 401,526 1,329,033

NET POSITION
Net Investment in Capital Assets 34,166,920 2,646,852 36,813,772 Unrestricted 525,077 1,380,966 1,906,043
Total Net Position $ 34,691,997 $ 4,027,818 $ 38,719,815

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN NET POSITION

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2023
(174)
Downtown Golf
Parking Course Total

OPERATING REVENUES
Service Charges $ 8,729,077 $ 3,849,960 $ 12,579,037
Other Revenues 169,385 78,183 247,568
Total Operating Revenues 8,898,462 3,928,143 12,826,605

OPERATING EXPENSES
Salaries, Wage, and Benefits 5,056,815 86,064 5,142,879 Material, Supplies, and Services 4,771,374 2,945,660 7,717,034 Depreciation 1,198,316 253,605 1,451,921
Total Operating Expenses 11,026,505 3,285,329 14,311,834 OPERATING INCOME (LOSS) (2,128,043) 642,814 (1,485,229)

NONOPERATING REVENUES (EXPENSES)
Investment Income (Loss) 71,655 38,028 109,683
Leases and Rents 232,360 250,230 482,590
Interest Expense - (18,281) (18,281)
Total Nonoperating Revenues (Expenses) 304,015 269,977 573,992 INCOME (LOSS) BEFORE TRANSFERS (1,824,028) 912,791 (911,237)

TRANSFERS
Transfers in 1,068,605 - 1,068,605
Transfers out (2,337) - (2,337)
Total Transfers 1,066,268 - 1,066,268
CHANGES IN NET POSITION (757,760) 912,791 155,031
Total Net Position - Beginning of Year 35,449,757 3,115,027 38,564,784 TOTAL NET POSITION - END OF YEAR $ 34,691,997 $ 4,027,818 $ 38,719,815

CITY OF SANTA BARBARA

COMBINING STATEMENT CASH FLOWS

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2023
(175)
Downtown Golf
Parking Course Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 8,611,009 $ 3,867,606 $ 12,478,615 Payments to Suppliers of Goods or Services (4,687,952) (3,037,415) (7,725,367) Payments to Employees (4,998,912) (86,023) (5,084,935)
Receipts from Others 169,385 78,183 247,568
Net Cash Provided (Used) by
Operating Activities (906,470) 822,351 (84,119)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Received from Other Funds 1,068,605 - 1,068,605
Cash Paid to Other Funds (2,337) - (2,337)
Advance from (to) Other Funds - (440,610) (440,610)
Net Cash Provided (Used) by
Noncapital Financing Activities 1,066,268 (440,610) 625,658

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets (144,174) (127,080) (271,254) Lease and Rental Income 232,360 250,230 482,590
Interest Paid - (18,281) (18,281)
Net Cash Used by Capital and
Related Financing Activities 88,186 104,869 193,055

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 71,655 38,028 109,683
Net Cash Provided (Used) by
Investing Activities 71,655 38,028 109,683

NET INCREASE IN
CASH AND CASH EQUIVALENTS 319,639 524,638 844,277
Cash and Cash Equivalents - Beginning of Year 4,917,173 2,954,180 7,871,353 CASH AND CASH EQUIVALENTS - END OF YEAR $ 5,236,812 $ 3,478,818 $ 8,715,630 (Continued)

CITY OF SANTA BARBARA

COMBINING STATEMENT CASH FLOWS (CONTINUED)

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2023
(176)
Downtown Golf
Parking Course Total

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:

Operating Income (Loss) $ (2,128,043) $ 642,814 $ (1,485,229) Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization 1,198,316 253,605 1,451,921 Accounts Receivable (110,699) 7,207 (103,492)
Lease Receivable 358,090 131,895 489,985
Inventory - (48,638) (48,638)
Deferred Outflows - Pension Related (1,075,220) (32,016) (1,107,236) Accounts Payable 83,422 26,049 109,471
Salaries and Benefits Payable 49,589 624 50,213
Deposits Payable 3,450 (7,522) (4,072)
Lease Payable - (69,166) (69,166)
Compensated Absences Payable 661 - 661
Unearned Revenue - 19,730 19,730
Net Pension Liability 2,398,076 72,977 2,471,053
Deferred Inflows - Lease Related (368,909) (133,664) (502,573) Deferred Inflows - Pension Related (1,315,203) (41,544) (1,356,747) Total Adjustments 1,221,573 179,537 1,401,110
Net Cash Provided (Used) by
Operating Activities $ (906,470) $ 822,351 $ (84,119)

NONCASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Capital Assets in Accounts Payable $ 38,212 $ - $ 38,212 NONCASH FLOWS FROM INVESTING ACTIVITIES:

Change in Fair Value $ (57,835) $ (38,495) $ (96,330)
(177)
(178)

INTERNAL SERVICE FUNDS
(179)
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CITY OF SANTA BARBARA, CALIFORNIA

INTERNAL SERVICE FUNDS
JUNE 30, 2023
(180)
Intra-City Service Fund – To account for the operating and capital costs of City-wide building maintenance operations, custodial services, and communications.

Self-Insurance Fund – To account for the cost of providing workers’ compensation, unemployment, liability, employee health insurance coverage, and other postemployment benefits, on a City-wide basis.

Postemployment Benefits Fund – To account for the cost of retiree health insurance coverage, and other postemployment benefits, on a City-wide basis.

Information Systems Fund – To account for the cost of providing computer equipment and service to all departments and funds within the City.

Vehicle Capital Fund – To account for the costs of operating an automotive maintenance facility, maintaining all City departmental vehicles, and purchasing new vehicles for use within the City-wide organization.

Energy Management Fund – To account for the costs to provide energy efficiency and conservation management, energy generation project management, and electric and gas utility coordination for all City departments.

CITY OF SANTA BARBARA

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2023
(181)
Intra-City Postemployment Information Vehicle Energy
Service Self-Insurance Benefits Systems Capital Management Total ASSETS
CURRENT ASSETS:

Pooled Cash and Investments 2,128,432 $ 8,632,381 $ $ - $ 2,440,665 $ 20,669,260 $ 1,115,789 $ 34,986,527 Accounts Receivable, Net 988 220,034 - - 19,524 15,457 256,003 Prepaids Assets and Deposits 507,548 1,306,442 10,144 - 145,619 - 1,969,753 Total Current Assets 2,636,968 10,158,857 10,144 2,440,665 20,834,403 1,131,246 37,212,283

NONCURRENT ASSETS
Advance to Other Funds - - - 1,600,005 - - 1,600,005
Capital Assets:

Nondepreciable - - - - 45,862 - 45,862
Depreciable, Net 5,166,971 14,866 - 3,743,623 11,774,459 562,006 21,261,925 Total Capital Assets, Net 5,166,971 14,866 - 3,743,623 11,820,321 562,006 22,907,792 Total Noncurrent Assets 5,166,971 14,866 - 3,743,623 13,420,326 562,006 22,907,792 Total Assets 7,803,939 10,173,723 10,144 6,184,288 34,254,729 1,693,252 60,120,075

DEFERRED OUTFLOWS OF RESOURCES
Pension Related 2,363,769 496,082 - 1,801,692 975,776 401,864 6,039,183 OPEB Related - 11,258,776 - - - 11,258,776 -
Total Deferred Outflows of Resources 2,363,769 496,082 11,258,776 1,801,692 975,776 401,864 17,297,959

LIABILITIES

CURRENT LIABILITIES
Accounts Payable 253,591 534,933 - 141,529 398,777 135,763 1,464,593 Salaries and Benefits Payable 118,712 26,792 136,992 108,153 50,757 26,809 468,215 Interfund Payables - - 1,428,950 - - - 1,428,950
Subscription Payable - 15,146 - 872,404 - - 887,550
Lease Payable - - - - - 5,260 5,260
Current Portion Long-Term Debt - - - - 530,628 - 530,628 Compensated Absences Payable 261,953 54,965 - 223,448 85,515 58,467 684,348 Claims Payable 5,625,607 - - - - - 5,625,607
Total OPEB Liability, due in one year - - 1,991,632 - - - 1,991,632 Total Current Liabilities 634,256 6,257,443 3,557,574 1,345,534 1,065,677 226,299 13,086,783

NONCURRENT LIABILITIES
Subscriptions Payable, Net of Current Portion - - - 864,571 - - 864,571 Lease Payable, Net of Current Portion - - - - - 567,887 567,887 Compensated Absences Payable 29,106 6,107 - 24,827 9,502 6,495 76,037 Long-Term Debt, Net of Current Portion - - - - 2,744,384 - 2,744,384 Claims Payable 15,510,393 - - - - 15,510,393 -
Net Pension Liability 8,423,698 1,279,303 - 4,709,532 3,285,713 1,104,147 18,802,393 Total Other Postemployment Benefit Liability - 45,539,670 - - - 45,539,670 - Total Noncurrent Liabilities 8,452,804 16,795,803 45,539,670 5,598,930 6,039,599 1,678,529 84,105,335 Total Liabilities 9,087,060 23,053,246 49,097,244 6,944,464 7,105,276 1,904,828 97,192,118

DEFERRED INFLOWS OF RESOURCES
Pension Related 24,531 5,148 - 18,697 10,126 4,170 62,672 OPEB Related - 15,096,082 - - - 15,096,082 -
Total Deferred Inflows
of Resources 24,531 5,148 15,096,082 18,697 10,126 4,170 15,158,754

NET POSITION
Net Investment In Capital Assets 5,166,971 14,866 - 3,743,623 11,820,321 562,006 21,307,787 Unrestricted (4,110,854) (12,403,455) (52,924,406) (2,720,804) 16,294,782 (375,888) (56,240,625) Total Net Position $ 1,056,117 $ (12,388,589) $ (52,924,406) $ 1,022,819 $ 28,115,103 $ 186,118 $ (34,932,838)

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENSES,

AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2023
(182)
Intra-City Postemployment Information Vehicle Energy
Service Self-Insurance Benefits Systems Capital Management Total

OPERATING REVENUES
Service Charges $ 6,592,766 $ 12,931,096 $ 3,550,688 $ 5,038,003 $ 6,247,516 $ 2,652,118 $ 37,012,187 Other Revenues 294,940 115,206 - 126,508 468,455 5,000 1,010,109 Total Operating Revenues 6,887,706 13,046,302 3,550,688 5,164,511 6,715,971 2,657,118 38,022,296

OPERATING EXPENSES
Salaries, Wages, and Benefits 4,371,443 834,322 4,477,445 3,192,974 1,732,059 728,532 15,336,775 Materials, Supplies, and Services 2,764,221 16,748,234 - 1,865,491 1,861,113 1,812,437 25,051,496 Depreciation 248,229 29,733 - 1,323,144 1,860,329 14,410 3,475,845 Total Operating Expenses 7,383,893 17,612,289 4,477,445 6,381,609 5,453,501 2,555,379 43,864,116 OPERATING INCOME (LOSS) (496,187) (4,565,987) (926,757) (1,217,098) 1,262,470 101,739 (5,841,820)

NONOPERATING REVENUES
Interest Income - (28,016) - - 108,138 - 80,122
Interest Expense - (1,074) - (67,622) (88,007) (11,313) (168,016) Total Nonoperating Revenues - (29,090) - (67,622) 20,131 (11,313) (87,894)

INCOME (LOSS) BEFORE
TRANSFERS (496,187) (4,595,077) (926,757) (1,284,720) 1,282,601 90,426 (5,929,714)

TRANSFERS
Transfers in 150,000 4,075,825 - 824,462 222,649 - 5,272,936 Transfers out (3,598) (409) - (205,050) (1,467) (435) (210,959) Total Transfers 146,402 4,075,416 - 619,412 221,182 (435) 5,061,977 CHANGES IN NET POSITION (349,785) (519,661) (926,757) (665,308) 1,503,783 89,991 (867,737) Total Net Position - Beginning
of Year (Deficit) 1,405,902 (11,868,928) (51,997,649) 1,688,127 26,611,320 96,127 (34,065,101)

TOTAL NET POSITION - END OF
YEAR (DEFICIT) $ 1,056,117 $ (12,388,589) $ (52,924,406) $ 1,022,819 $ 28,115,103 $ 186,118 $ (34,932,838)

CITY OF SANTA BARBARA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2023
(183)
Intra-City Postemployment Information Vehicle Energy
Service Self-Insurance Benefits Systems Capital Management Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 6,592,766 $ 12,817,100 $ 3,550,688 $ 5,038,003 $ 6,250,569 $ 2,558,061 $ 36,807,187 Payments to Suppliers of Goods or Services (2,735,894) (14,327,397) (10,144) (23,819) (1,871,615) (1,285,224) (20,254,093) Payments to Employees (4,335,555) (836,661) (2,473,998) (3,044,038) (1,737,598) (682,927) (13,110,777) Receipts from Others 294,940 115,206 - 126,508 468,455 5,000 1,010,109 Net Cash Provided (Used) by
Operating Activities (183,743) (2,231,752) 1,066,546 2,096,654 3,109,811 594,910 4,452,426

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash Transfers in 150,000 4,075,825 - 824,462 222,649 - 5,272,936 Cash Transfers out (3,598) (409) - (205,050) (1,467) (435) (210,959) Advance from (to) Other Funds - - (1,066,546) - 522,411 (24,140) (568,275) Net Cash Provided (Used) by
Noncapital Financing Activities 146,402 4,075,416 (1,066,546) 619,412 743,593 (24,575) 4,493,702

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of Capital Assets, net - (44,599) (2,601,777) - (885,074) (576,416) (4,107,866) Principal Paid on Capital Debt - - - - (518,363) - (518,363) Interest Paid on Capital Debt - (1,074) - (67,622) (88,007) (11,313) (168,016) Net Cash Provided (Used) by Capital and
Related Financing Activities - (45,673) - (2,669,399) (1,491,444) (587,729) (4,794,245)

CASH FLOWS FROM INVESTING

ACTIVITIES
Investment Income (Loss) - (28,016) - - 108,138 - 80,122 Net Cash Used by
Investing Activities - (28,016) - - 108,138 - 80,122

NET CHANGE IN CASH AND
CASH EQUIVALENTS (37,341) 1,769,975 - 46,667 2,470,098 (17,394) 4,232,005 Cash and Cash Equivalents -
Beginning of Year 2,165,773 6,862,406 - 2,393,998 18,199,162 1,133,183 30,754,522

CASH AND CASH EQUIVALENTS -
END OF YEAR $ 2,128,432 $ 8,632,381 $ - $ 2,440,665 $ 20,669,260 $ 1,115,789 $ 34,986,527 (Continued)

CITY OF SANTA BARBARA

COMBINING STATEMENT OF CASH FLOWS (CONTINUED)

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2023
(184)
Intra-City Postemployment Information Vehicle Energy
Service Self-Insurance Benefits Systems Capital Management Total

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:

Operating Income (Loss) $ (496,187) $ (4,565,987) $ (926,757) $ (1,217,098) $ 1,262,470 $ 101,739 $ (5,841,820) Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization 248,229 29,733 1,323,144 - 1,860,329 14,410 3,475,845 (Increase) Decrease in Operating Assets and
Deferred Outflows of Resources:

Accounts Receivable - (113,996) - - 3,053 (15,457) (126,400) Prepaid Assets 83,865 448,996 (10,144) - 99,439 - 622,156 Deferred Outflows of Resources - Pension Related (1,503,511) (301,928) - (1,175,569) (596,649) (279,708) (3,857,365) Deferred Outflows of Resources - OPEB Related - 1,684,507 - - - 1,684,507 - Increase (Decrease) in Operating Liabilities and
Deferred Inflows of Resources:

Accounts Payable (55,538) (855,519) - 104,697 (109,941) (45,934) (962,235) Salaries and Benefits Payable 20,832 5,665 (14,736) 36,759 13,349 12,881 74,750 Leases Payable - - - - 573,147 - 573,147
Subscriptions Payable - 15,146 1,736,975 - - - 1,752,121 Unearned Revenue - - - - - (78,600) (78,600)
Compensated Absences Payable 2,411 5,129 - 68,238 3,734 2,629 82,141 Net Pension Liability 3,349,533 702,964 2,553,054 - 1,382,705 569,454 8,557,710 Total Other Postemployment Benefit Liability - - (6,393,423) - - - (6,393,423) Claims and Judgements 2,812,214 - - - - 2,812,214 -
Deferred Inflows of Resources - Pension Related (1,833,377) (414,169) - (1,333,546) (808,678) (259,651) (4,649,421) Deferred Inflows of Resources - OPEB Related - 6,727,099 - - - 6,727,099 - Total Adjustments 312,444 2,334,235 1,993,303 3,313,752 1,847,341 493,171 10,294,246 Net Cash Provided (Used) by
Operating Activities $ (183,743) $ (2,231,752) $ 1,066,546 $ 2,096,654 $ 3,109,811 $ 594,910 $ 4,452,426 NONCASH FLOWS FROM INVESTING ACTIVITIES:

Change in Fair Value $ - $ (95,578) $ - $ - $ (212,686) $ - $ (308,264) (185)
(186)

FIDUCIARY FUNDS
(187)
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CITY OF SANTA BARBARA, CALIFORNIA

FIDUCIARY FUNDS
JUNE 30, 2023
(188)

CUSTODIAL FUNDS
Revolving Rehabilitation Loan Fund – To account for moneys received from various public agencies for funding of rehabilitation loans to low- and moderate-income applicants.

Law Enforcement Telecommunication System Fund – To account for moneys received from various participating public agencies for the purchase of computer equipment for communication with the California Law Enforcement Tracking System (CLETS).

CITY OF SANTA BARBARA

COMBINING STATEMENT OF FIDUCIARY NET POSITION

CUSTODIAL FUNDS
JUNE 30, 2023
(189)
California Law Total
Revolving Enforcement Custodial
Rehab Telecommunications Funds
ASSETS
Current Assets:

Pooled Cash and Investments $ 532,356 $ 16,049 $ 548,405 Accounts Receivable, Net - 47,633 47,633
Loans Receivable 2,131,104 - 2,131,104
Total Assets $ 2,663,460 $ 63,682 $ 2,727,142

LIABILITIES
Current Liabilities:

Accounts Payable $ 195 $ - $ 195
Total Liabilities 195 - 195

NET POSITION
Restricted for Others 2,663,265 63,682 2,726,947
Total Net Position $ 2,663,265 $ 63,682 $ 2,726,947

CITY OF SANTA BARBARA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2023
(190)
California Law Total
Revolving Enforcement Custodial
Rehab Telecommunications Funds

ADDITIONS
Interest Income $ 98,191 $ (152) $ 98,039
Contributions from Members - 165,491 165,491
Total Additions 98,191 165,339 263,530

DEDUCTIONS
Administrative Expenses 37,805 117,141 154,946
Program Payments 4 40,390 40,394
Total Liabilities 37,809 157,531 195,340
Change in Net Position 60,382 7,808 68,190
Total Net Position, Beginning
of Year 2,602,883 55,874 2,658,757
Total Net Position, End of Year $ 2,663,265 $ 63,682 $ 2,726,947 (191)
(192)

STATISTICAL SECTION
(193)
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CITY OF SANTA BARBARA, CALIFORNIA

STATISTICAL SECTION (UNAUDITED)

CONTENTS
(194)
This part of the City of Santa Barbara’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 196 Revenue Capacity
These schedules contain trend information to help the reader assess the City’s most significant local revenue source, the property tax. 199 Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 207
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 213 Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 215
Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year. (195)
l

CITY OF SANTA BARBARA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(196)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $312,891 $362,540 $381,554 $427,683 $436,966 $443,975 $465,776 $493,238 $498,799 $518,120 Restricted 66,510 65,614 81,979 80,934 65,647 81,702 82,205 87,096 97,387 105,464 Unrestricted 42,378 45,146 (190,965) (186,953) (164,523) (189,963) (211,108) (235,289) (233,861) (216,208) Total governmental activities net position $421,779 $473,300 $272,568 $321,664 $338,090 $335,714 $336,873 $345,045 $362,325 $407,376 Business-type activities
Net investment in capital assets $300,997 $340,246 $347,257 $361,076 $365,505 $359,890 $380,202 $384,837 $391,224 $398,278 Restricted 1,358 3,659 3,794 11,962 13,546 13,052 9,349 10,457 5,662 5,663 Unrestricted 98,908 95,656 43,114 37,996 57,464 78,131 68,259 97,205 109,747 143,206 Total business-type activities net position $401,263 $439,561 $394,165 $411,034 $436,515 $451,073 $457,810 $492,499 $506,633 $547,147 Primary government
Net investment in capital assets $613,888 $702,786 $728,811 $788,759 $802,471 $803,865 $845,978 $878,075 $890,023 $916,398 Restricted 67,868 69,273 85,773 92,896 79,193 94,754 91,554 97,553 103,049 111,127 Unrestricted 141,286 140,802 (147,851) (148,957) (107,059) (111,832) (142,849) (138,084) (124,114) (73,002) Total primary government net position $823,042 $912,861 $666,733 $732,698 $774,605 $786,787 $794,683 $837,544 $868,958 $954,523

CITY OF SANTA BARBARA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(197)
Expenses 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Governmental activities:

Administration $11,851 $14,650 $17,100 $16,179 $16,612 $20,045 $19,586 $20,956 $19,964 $19,177 Public safety 61,719 66,525 65,260 63,451 66,678 82,485 79,814 90,295 88,435 90,023 Public works 25,252 24,552 29,672 26,053 28,565 34,583 44,753 40,103 46,787 37,767 Community services 24,104 24,083 25,377 26,454 27,635 30,500 25,777 25,294 27,392 24,973 Community development 11,864 13,567 12,077 16,933 17,442 16,083 18,753 18,182 19,434 15,459 Sustainability and Resilience - - - - - - - - 38 110
Interest on long-term debt 82 74 56 42 66 - - - - -
Total governmental activities expenses 134,872 143,451 149,542 149,112 156,998 183,696 188,683 194,830 202,050 187,509 Business-type activities:

Water 32,214 35,316 40,409 35,859 37,291 45,239 51,504 50,122 52,502 50,913 Wastewater 17,217 16,930 17,242 17,376 18,299 20,542 20,828 22,794 23,906 22,307 Airport 21,376 20,557 21,616 21,361 22,057 24,507 26,139 26,745 26,066 27,530 Waterfront 12,026 12,707 12,179 12,639 12,975 15,010 15,861 15,710 15,418 14,387 Solid Waste 19,124 19,732 20,353 20,498 20,837 23,948 24,325 27,146 31,245 30,333 Parking 7,359 7,693 8,325 7,941 8,481 10,104 10,277 9,758 9,138 9,173 Golf course 1,949 1,820 2,018 2,022 2,591 2,642 2,625 2,358 3,446 3,401 Clean Energy - - - - - - - - 132 16,021
Total business-type activities expenses 111,265 114,755 122,142 117,696 122,531 141,992 151,559 154,633 161,853 174,065 Total primary government expenses $246,137 $258,206 $271,684 $266,808 $279,529 $325,688 $340,242 $349,463 $363,903 $361,574 Program Revenues
Governmental activities:

Charges for services:

Administration $1,259 $2,008 $4,851 $4,479 $4,143 $3,826 $2,043 $2,273 $1,757 $3,659 Public safety 10,538 13,627 10,794 10,650 11,758 12,141 5,838 5,464 5,025 5,965 Public works 8,789 9,434 8,945 9,161 9,586 9,333 7,282 6,615 7,534 7,558 Community services 5,532 7,934 10,869 11,909 12,400 12,629 6,416 5,471 5,201 7,397 Community development 5,095 5,348 5,347 6,540 6,081 6,916 5,529 5,091 5,717 7,441 Operating grants and contributions 13,251 14,490 6,303 8,487 7,882 10,462 20,162 19,508 33,100 22,360 Capital grants and contributions 8,474 10,517 24,137 26,181 16,966 16,301 24,112 23,446 21,274 22,688 Total governmental activities program revenues 52,938 63,358 71,246 77,407 68,816 71,608 71,382 67,868 79,608 77,068 Business-type activities:

Charges for services:

Water 38,171 36,368 34,573 45,097 51,641 56,117 54,622 60,133 65,633 69,058 Wastewater 17,658 17,991 17,742 18,632 20,142 20,738 21,402 22,990 24,474 25,807 Airport 17,740 17,910 17,902 17,988 19,175 20,650 23,205 23,275 19,596 25,920 Waterfront 12,782 13,776 14,982 14,658 15,075 14,815 14,639 14,215 15,644 17,241 Solid Waste 19,354 20,689 20,827 21,059 20,953 22,116 24,191 27,455 29,817 34,294 Parking 7,691 7,955 8,432 8,457 8,514 8,285 8,473 6,383 4,355 6,082 Golf course 1,833 2,031 1,950 1,950 2,531 2,607 2,629 2,681 4,079 4,229 Clean Energy - - - - - - - - 100 14,718
Operating grants and contributions - - - 24 23 23 23 23 8,742 17,913 Capital grants and contributions 4,256 3,663 3,289 5,582 496 8,640 2,220 46 3,565 292 Total business-type activities program revenues 119,485 120,383 119,697 133,447 138,550 153,991 151,404 157,201 176,005 215,554 Total primary government program revenues $172,423 $183,741 $190,943 $210,854 $207,366 $225,599 $222,786 $225,069 $255,613 $292,622 Fiscal Years

CITY OF SANTA BARBARA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(198)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net (expense)/revenue
Governmental activities ($81,934) ($80,093) ($78,296) ($71,705) ($88,182) ($112,088) ($117,301) ($126,962) ($122,442) ($110,441) Business-type activities 8,220 5,628 (2,445) 15,751 16,019 11,999 (155) 2,568 10,044 41,489 Total primary government net expense ($73,714) ($74,465) ($80,741) ($55,954) ($72,163) ($100,089) ($117,456) ($124,394) ($112,398) ($68,952) General Revenues and Other
Changes in Net Position
Governmental activities:

Taxes
Property $27,575 $26,555 $27,691 $29,382 $31,612 $34,928 $35,187 $38,148 $39,862 $42,226 Transient occupancy 17,611 20,186 22,527 22,379 23,110 22,650 23,421 18,168 18,807 31,956 Sales & use 20,134 21,323 21,958 21,932 21,807 25,203 48,603 44,533 49,770 59,328 Business license 2,345 2,555 2,574 2,636 2,651 2,786 2,725 2,765 2,543 2,667 Utility users 14,054 14,016 13,810 14,338 14,014 14,149 13,888 14,120 14,674 15,610 Real property transfer 642 669 692 730 762 795 863 658 1,144 1,353 Other taxes - - - - - 11 94 1,055 1,921 1,672
Franchise fees 3,579 3,822 3,751 3,132 4,231 3,597 3,637 3,635 3,852 6 Unrestricted motor vehicle license-in-lieu 77 40 39 37 42 49 46 74 69 4,176 Investment income 2,521 2,165 2,030 2,288 1,733 2,172 4,137 4,291 2,478 108 Other revenue 6,193 660 669 419 2,610 11,289 57 8,982 90 Extraordinary gain - 38,084 ² - 23,054 1,335 - - - - 745 Extraordinary loss - - - - - - - - - -
Gain/loss on sale of capital assets (695) - - 44 404 - - - - - Transfers 748 918 342 433 299 (462) (277) (165) 625 (2,693) Total governmental activities 94,784 130,995 96,083 120,804 104,610 117,167 132,381 136,264 135,835 155,493 Business-type activities:

Investment earnings 582 1,562 1,218 1,304 556 724 4,574 3,952 419 (3,858) Other revenue - 221 555 248 9,205 1,372 1,914 28,873 4,296 189 Extraordinary gain - 28,956 ² - - - - - - - -
Transfers (748) (918) (342) (433) (299) 462 277 165 (625) 2,693 Total business-type activities (166) 29,821 1,431 1,119 9,462 2,558 6,765 32,990 4,090 (976) Total primary government $94,618 $160,816 $97,514 $121,923 $114,072 $119,725 $139,146 $169,254 $139,925 $154,517 Change in Net Position
Governmental activities $12,850 $50,902 $17,787 $49,099 $16,429 $5,079 $15,080 $9,302 $13,393 $45,052 Business-type activities 8,054 35,449 (1,014) 16,870 25,481 14,557 6,610 35,558 14,134 40,513 Total primary government $20,904 $86,351 $16,773 $65,969 $41,909 $19,636 $21,690 $44,860 $27,527 $85,565 Note: Description of extraordinary gain / loss
¹ Extraordinary loss of dissolution of RDA
² Extraordinary gain from Successor Agency property transfer Fiscal Year

CITY OF SANTA BARBARA

GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(199)
Real
Sales Transient Utility Trans- Business Property
Fiscal Property & Use Occupancy Users portation License Transfer Cannabis Other Year Tax Tax Tax Tax Tax Tax Tax Tax Tax Total
2013 $ 20,134 27,575 $ 17,611 $ 14,054 $ 3,322 $ 2,345 $ 642 $ - $ $ - $ 85,683 2014 26,555 21,323 20,186 14,016 3,488 2,555 669 - 88,792 - 2015 27,691 21,958 22,527 13,810 3,637 2,574 692 - 92,889 - 2016 29,382 21,932 22,379 14,338 3,689 2,636 730 - 95,086 - 2017 31,612 21,807 23,110 14,014 3,746 2,651 762 - 97,702 - 2018 34,928 25,203 (1) 22,650 14,149 3,954 2,785 795 11 (2) - 104,475 2019 35,187 48,603 23,421 13,888 4,141 2,725 863 79 15 128,922 2020 38,148 44,465 18,168 14,137 4,100 2,765 658 1,052 3 123,496 2021 39,862 49,770 18,807 14,674 4,438 2,543 1,144 1,920 - 133,159 2022 42,226 59,328 31,956 15,610 5,304 2,667 1,353 1,672 6 160,122 Source: FY 22, Munis reporting.
(1) Measure C, a 1% sales and use tax increase, became effective April 1, 2018. (2) Cannabis Taxes commenced in FY2018 following State ballot measure to legalize Cannabis production and retail.

CITY OF SANTA BARBARA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(200)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable $ 7,813 $ 6,910 $ 4,033 $ 2,747 $ 2,105 $ 1,689 $ 9,592 $ 1,252 $ 1,277 $ 7,060 Restricted 421 2,213 2,464 2,682 2,667 2,856 2,995 2,140 2,299 2,504Committed 20,762 21,644 26,575 30,299 31,461 27,917 26,777 26,499 35,639 39,126 Assigned 226 153 177 203 312 357 - - - -
Unassigned - - - - - (4,412) - 2,261 (481) 2,878
Total general fund $ 29,222 $ 30,920 $ 33,249 $ 35,931 $ 36,545 $ 32,819 $ 34,952 $ 32,152 $ 38,734 $ 51,568 All other governmental funds
Nonspendable $ 434 $ - $ - $ - $ - $ - $ - $ - $ - $ -
Restricted 66,088 63,401 62,301 62,104 62,980 78,845 79,020 84,883 93,492 95,862 Committed 2,807 11,050 12,170 12,965 12,883 11,899 11,052 13,342 23,364 40,552 Assigned 10,603 8,636 8,156 3,789 2,837 2,857 3,961 - - - Unassigned (283) (722) (152) (1,604) (949) (4,546) (7,295) (6,702) (5,772) (9,028) Total all other governmental funds $ 79,649 $ 82,365 $ 82,475 $ 77,254 $ 77,751 $ 89,055 $ 86,738 $ 91,523 $ 111,084 $ 127,386

CITY OF SANTA BARBARA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(201)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
RevenuesTaxes $85,683 $88,791 $92,888 $95,086 $97,702 $104,477 $128,923 $123,502 $133,159 $160,102Franchise fees 3,579 3,822 3,751 3,132 4,231 3,597 3,637 3,650 3,852 4,176 Intergovernmental 16,801 19,569 23,899 27,055 19,929 17,723 23,344 24,211 39,572 26,713Fines and forfeitures 4,416 4,529 4,177 3,597 4,106 3,975 3,481 2,812 2,225 3,249 Use of money and property 2,924 2,047 1,938 2,177 1,684 2,107 3,710 3,905 2,448 (1,274) Charges for services 20,192 20,923 21,567 22,336 21,811 22,849 22,401 20,733 22,532 26,617Program income 493 311 511 386 399 374 236 828 757 409 Other revenues 12,192 9,642 11,537 13,672 15,453 23,069 13,737 21,835 11,853 13,230Total revenues 146,280 149,634 160,268 167,441 165,315 178,171 199,469 201,476 216,398 233,222ExpendituresGeneral government/administration (1) 10,788 11,444 13,792 15,923 15,980 17,681 18,261 19,005 17,803 20,918Public safety 59,166 61,216 62,559 64,330 66,847 73,706 72,602 75,984 74,849 80,601Public works 13,072 12,829 21,087 20,536 20,465 21,252 22,324 23,423 22,556 23,967Community services 20,365 21,140 22,009 23,191 24,224 24,727 23,808 22,408 22,039 25,360Community development 11,085 12,332 11,776 13,646 13,494 13,573 16,836 15,736 17,663 16,718Community promotions (1) 2,005 2,051 2,620 - - - - - - - Sustainability and Resilience - - - - - - - - 38 110
Capital outlay 22,229 22,943 23,370 32,068 21,056 19,076 45,300 42,070 32,435 34,652Debt service Principal 274 287 300 307 663 - - - - 334
Interest 75 64 51 38 58 - - - - 84
Total expenditures 139,059 144,306 157,564 170,039 162,787 170,015 199,131 198,626 187,383 202,744Excess of revenues over (under) expenditures 7,221 5,328 2,704 (2,598) 2,528 8,156 338 2,850 29,015 30,478 (Continued)
Note:
(1) Beginning in Fiscal Year 2016, Community Promotions expenditures were recorded in the General Government/Administration classification.

Fiscal Year

CITY OF SANTA BARBARA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(202)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Other financing sources (uses)Lease obligation $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,179 Transfers in 12,433 11,605 20,009 9,150 11,625 18,006 36,040 33,238 35,742 41,970Transfers out (12,239) (12,520) (20,275) (9,093) (13,042) (18,580) (36,564) (34,103) (42,501) (44,491) Total other financing
sources (uses) 194 (915) (266) 57 (1,417) (574) (524) (865) (6,759) (1,342) Net change in fund balances 7,415 4,413 2,438 (2,541) 1,111 7,582 (186) 1,985 22,256 29,136 Debt service as a percentage of noncapital
expenditures 0.28% 0.27% 0.00% 0.24% 0.26% 0.47% 0.00% 0.00% 0.00% 0.23%

CITY OF SANTA BARBARA

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(203)
Net Taxable Total
Fiscal SBE Assessed Direct Tax
Year Secured Unsecured Nonunitary Value Rate
2013 $ 14,450,300 $ 897,146 $ - $ 15,347,446 1.00%
2014 15,115,761 916,616 - 16,032,377 1.00%
2015 15,828,353 950,610 - 16,778,963 1.00%
2016 16,893,957 1,000,471 - 17,894,428 1.00%
2017 17,897,470 1,002,168 - 18,899,638 1.00%
2018 18,999,710 1,046,971 - 20,046,681 1.00%
2019 20,146,839 1,058,569 - 21,205,408 1.00%
2020 21,207,130 1,074,831 - 22,281,961 1.00%
2021 22,473,303 1,125,860 - 23,599,163 1.00%
2022 23,186,266 1,200,282 - 24,386,548 1.00%
Notes:

Exempt values are not included in Total
HDL Coren & Cone Data Source: Santa Barbara County Assessor 2012/13 - 2021/22 Combined Tax Rolls.

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

In Fiscal Year 2018, the City engaged HDL, Coren & Cone to provide data for the statistical section of the Annual Comprehensive Financial Report. Historical data was updated based upon this information.

CITY OF SANTA BARBARA

DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATE PER $100 OF TAXABLE VALUE)

LAST TEN FISCAL YEARS
(204)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Direct Rates:

Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000Overlapping Rates: (2)Cold Spring Elementary 0.01443 0.01450 0.01446 0.01411 0.01207 0.01192 0.01177 0.01177 0.01176 0.01217 Goleta Union 0.01627 0.01383 0.01314 0.01248 0.01061 0.00955 0.00907 0.00862 0.00776 0.02621Hope Elementary 0.00883 0.00883 0.01850 0.01779 0.01514 0.01222 0.01181 0.01181 0.02280 0.02340Montecito Union Elementary Bond 1997 A 0.00089 0.00067 0.00050 0.00025 0.00019 0.00010 0.00007 0.00007 0.00007 0.00007Santa Barbara Community College Bond 2008 0.00850 0.00850 0.00850 0.00850 0.00731 0.00731 0.00731 0.00731 0.00731 0.00709Santa Barbara Elementary 0.01728 0.01995 0.01995 0.01995 0.01776 0.01713 0.03445 0.02850 0.02616 0.02639Santa Barbara High Bond 0.01391 0.01995 0.01995 0.01670 0.01581 0.02692 0.02417 0.02417 0.02414 0.02415

0.08011 0.08623 0.09500 0.08978 0.07889 0.08515 0.09865 0.09225 0.10000 0.11948 Total Direct and Overlapping Rates: 1.08011 1.08623 1.09500 1.08978 1.07889 1.08515 1.09865 1.09225 1.10000 1.11948City's Share of 1% Levy Per Prop 13: (3) 0.11963 0.11963 0.11963 0.11963 0.11963 0.11963 0.11963 0.11963 0.11963 0.11963Voter Approved City Debt RateTotal Direct Rate: (4) 0.23570 0.12008 0.12008 0.12019 0.12010 0.12009 0.12009 0.12011 0.11877 0.11880Notes:HDL Coren & Cone Data Source: Santa Barbara County Assessor 2012/13 - 2021/22 Tax Rate Table.(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.

Fiscal Year
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known.(4) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in fiscal year 2014 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during fiscal year 2013. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

In Fiscal Year 2018, the City engaged HdL, Coren & Cone to provide data for the statistical section of the Comprehensive Annual Financial Report. Historical data was updated based upon this information.

CITY OF SANTA BARBARA

PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO
(AMOUNTS EXPRESSED IN THOUSANDS)
(205)
Percentage of
Taxable Net Total Taxable
Assessed Net Assessed
Taxpayer Value Value
Levon Investments LLC $148,501 0.61%
Fess Parker Doubletree Hotel 113,853 0.47%
KHP IV Santa Barbara LLC 95,990 0.39%
Paseo Nuevo Owner LLC 88,391 0.36%
XHR Santa Barbara LLC 87,253 0.36%
El Encanto Inc 81,285 0.33%
Dario L Pini Trust 71,397 0.29%
HC Assetco 69,340 0.28%
MCC BB Property LLC 66,227 0.27%
Hitchcock Holdings LLC 61,972 0.25%
$884,209 3.63%
Percentage of
Taxable Net Total Taxable
Assessed Net Assessed
Taxpayer Value Value
Fess Parker Doubletree Hotel $84,187 0.55%
Levon Investments LLC 81,628 0.53%
Dario Pini 54,704 0.36%
FW CA-Five Points Shopping Center LLC 51,939 0.34%
Hitchcock Holdings LLC 50,690 0.33%
Estate of Huguette M Clark 45,900 0.30%
I and G Direct Real Estate 3 LP 44,003 0.29%
MCC BB Property LLC 42,863 0.28%
Patricia S Nettleship Trustee 38,170 0.25%
KHP II Canary 34,612 0.23%
$528,696 3.44%
Notes:

HDL Coren & Cone Data Source: Santa Barbara County Assessor 2012/13 and 2021/22 Combined Tax Rolls and the SBE Non Unitary Tax Roll.

Fiscal Year 2013
Fiscal Year 2022

CITY OF SANTA BARBARA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(206)
Fiscal Year Total Tax Collections
Ended Levy for in Subsequent
June 30 Fiscal Year Amount Percentage of Levy Years Amount Percentage of Levy 2013 $ 27,575 27,575 $ 100% - $ 27,575 100%
2014 26,555 26,555 100% - 26,555 100%
2015 27,691 27,691 100% - 27,691 100%
2016 29,382 29,382 100% - 29,382 100%
2017 31,612 31,612 100% - 31,612 100%
2018 34,928 34,928 100% - 34,928 100%
2019 35,187 35,187 100% - 35,187 100%
2020 38,148 38,148 100% - 38,148 100%
2021 39,862 39,862 100% - 39,862 100%
2022 42,226 42,226 100% - 42,226 100%
Collected within the
Fiscal Year of the Levy Total Collections to Date

CITY OF SANTA BARBARA

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER CAPITA AMOUNT) (207)
Governmental Activities
Certificates Tax Certificates Total Percentage
Fiscal of Allocation Revenue of Primary of Personal Per Year Participation Bonds Loans Bonds Participation Loans Government Income1 Capita1 2013 $ - 1,555 $ -$ $ 60,384 $ 39,569 $ 45,071 $ 146,579 4.48% $ 1,634 2014 1,268 - - 70,991 24,422 50,970 147,651 4.52% 1,634 2015 968 - - 68,660 22,711 56,231 148,570 4.48% 1,640
2016 662 - - 66,243 20,965 77,781 165,651 4.90% 1,778
2017 - - - 62,686 19,001 116,494 198,181 5.83% 2,130
2018 - - - 60,030 17,334 141,290 218,654 6.27% 2,306
2019 - - - 51,655 15,617 140,301 207,573 5.47% 2,219
2020 - - 48,699 - 13,835 138,249 200,783 5.00% 2,147
2021 - - 45,633 - 11,993 130,600 188,226 4.46% 2,023
2022 - - 42,782 - 10,278 122,785 175,845 3.89% 2,031
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. The amount of outstanding debt by type reported above is net of related premiums and discounts. 1 See the Schedule of Demographic and Economic Statistics for personal income and population data.

Business-Type Activities

CITY OF SANTA BARBARA

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER CAPITA AMOUNT) (208)
Percentage of
Estimated
Certificates Tax Less: Amounts Actual Taxable
Fiscal of Allocation Available in Debt Value1
of Per
Year Participation Bonds Loans Service Fund Total Property Capita2 2013 $ 1,555 $ - $ - $ 561 $ 994 0.01% 11
2014 1,268 - - 561 707 0.00% 8
2015 968 - - 580 388 0.00% 4
2016 662 - - 576 86 0.00% 1
2017 - - - - - 0.00% 0
2018 - - - - - 0.00% 0
2019 - - - - - 0.00% 0
2020 - - - - - 0.00% 0
2021 - - - - - 0.00% 0
2022 - - - - - 0.00% 0
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. 1 See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data. 2 Population data can be found in the Schedule of Demographic and Economic Statistics.

CITY OF SANTA BARBARA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(209)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Assessed valuation $16,766,951 $17,554,215 $18,330,384 $19,637,766 $20,856,683 $22,171,096 $23,507,910 $24,610,953 $25,832,015 $26,720,501Coverage percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted assessed valuation $4,191,738 $4,388,554 $4,582,596 $4,909,442 $5,214,171 $5,542,774 $5,876,978 $6,152,738 $6,458,004 $6,680,125Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15%Debt limit $628,761 $658,283 $687,389 $736,416 $782,126 $831,416 $881,547 $922,911 $968,701 $1,002,019Total net debt applicable to limit - - - - - - - - - - Legal debt margin $628,761 $658,283 $687,389 $736,416 $782,126 $831,416 $881,547 $922,911 $968,701 $1,002,019Total net debt applicable to the limitas a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% HDL Coren & Cone Data Source: Santa Barbara County Assessor 2021/22 Combined Tax RollsThe Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of In Fiscal Year 2018, the City engaged HdL, Coren & Cone to provide data for the statistical section of the Comprehensive Annual Financial Report.

Fiscal Year

CITY OF SANTA BARBARA

PLEDGE-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(210)
Less Net Waste- Less Net
Fiscal Water Operating Available water Operating Available Tax Year Revenue Expenses Revenue Principal Interest Coverage Revenue Expenses Revenue Principal Interest Coverage Increment Principal Interest Coverage 2013 $ 38,172 $ 23,577 $ 14,595 $ 655 $ 83 19.78 $ 17,658 $ 11,688 $ 5,970 $ 655 $ 701 4.40 $ 8,145 1 $ 5,925 1 $ 2,220 1 1.00 2014 36,485 27,675 8,810 1,475 666 4.11 18,030 11,788 6,242 675 677 4.62 8,145 1 6,195 1 1,950 1 1.002015 34,904 31,823 3,081 1,360 775 1.44 17,778 11,774 6,004 700 652 4.44 8,147 1 6,485 1 1,662 1 1.002016 45,268 27,096 18,172 1,390 747 8.50 18,712 11,556 7,156 730 625 5.28 8,147 1 6,790 1 1,357 1 1.002017 52,079 28,869 23,210 1,425 712 10.86 20,181 12,656 7,525 750 492 6.06 8,143 1 7,085 1 1,058 1 1.002018 57,234 34,798 22,436 1,470 668 10.49 20,808 15,026 5,782 700 463 4.97 8,145 1 7,430 1 715 1 1.002019 55,384 40,004 15,380 1,520 616 7.20 21,418 15,348 6,070 725 435 5.23 8,146 7,795 1 351 1 1.002020 79,432 38,066 41,366 1,585 554 19.34 23,003 16,086 6,917 760 398 5.97 - - 1,2 - 1 - 2021 65,633 37,983 27,650 1,645 489 12.96 24,474 15,825 8,649 805 360 7.42 - - 1,2 - 1 -2022 69,058 39,102 29,955 1,715 422 14.02 25,807 15,807 10,151 845 320 8.71 - - 1,2 - 1 - 1 Debt service payments of the former Redevelopment Agency have become Recognized Obligation Payments of the Successor Agency Trust of the former Redevelopment Agency.2 Final year of debt service FY2019 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses.

Water Revenue Bonds Wastewater Revenue Bonds Tax Allocation Bonds Debt Service Debt Service Debt Service

CITY OF SANTA BARBARA

PLEDGE-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(211)
Less Net Less Net Less Net
Fiscal Airport Operating Available Airport Operating Available Waterfront Operating Available Year Revenue Expenses Revenue Principal Interest Coverage Revenue Expenses Revenue Principal Interest Coverage Revenue Expenses Revenue Principal Interest Coverage 2013 $ 17,740 $ 12,945 $ 4,795 $ 865 $ 2,259 1.53 17,740 $ $ 12,945 $ 4,795 $ 185 $ 402 8.17 $ - $ - $ - $ - $ - - 2014 17,997 13,498 4,499 900 2,226 1.44 17,997 13,498 4,499 267 194 9.76 13,776 10,035 3,741 194 29 16.78 2015 18,113 13,244 4,869 935 2,189 1.56 18,113 13,244 4,869 276 184 10.58 14,982 10,013 4,969 738 422 4.28 2016 17,996 13,011 4,985 970 2,147 1.60 17,996 13,011 4,985 286 175 10.81 14,660 10,309 4,351 760 396 3.76 2017 19,178 14,254 4,924 1,020 2,102 1.58 19,178 14,254 4,924 296 165 10.68 15,080 10,857 4,223 794 369 3.63 2018 20,656 16,421 4,235 1,065 2,060 1.36 20,656 16,421 4,235 306 154 9.21 14,822 12,650 2,172 814 340 1.88 2019 23,326 17,247 6,079 1,105 2,011 1.95 23,326 17,247 6,079 317 143 13.22 14,995 13,033 1,962 842 311 1.70 2020 31,141 18,560 12,581 990 1,473 5.11 31,141 18,560 12,581 3,856 67 3.21 14,629 12,748 1,881 873 281 1.63 2021 19,569 16,206 3,363 1,025 1,442 1.36 19,569 16,206 3,363 - - 15,644 - 11,626 4,018 903 250 3.48 2022 25,920 18,880 7,041 1,075 1,391 2.86 25,920 18,880 7,041 - - 17,241 - 11,827 5,415 931 218 4.71 4 Final year of debt service FY2020
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses.

Airport Revenue Bonds Airport Promissory Note 4 Waterfront Revenue Bonds Debt Service Debt Service Debt Service

CITY OF SANTA BARBARA

PLEDGE-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(212)
Less Net
Fiscal Golf Operating Available
Year Revenue Expenses Revenue Principal Interest Coverage 2013 $ 1,613 1,833 $ 220 $ 141 $ 39$ 1.222014 2,031 1,538 493 148 33 2.73 2015 1,950 1,650 300 155 26 1.66
2016 1,950 1,767 183 158 19 1.03
2017 2,587 2,341 246 342 0.70 8
2018 2,680 2,384 296 - - -
2019 2,692 2,414 278 - - -
2020 2,737 2,141 596 - - -
2021 4,097 1,073 3,024 - - - 2022 4,229 1,159 3,070 - - - Golf Certificates of Participation
Debt Service
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do notinclude interest or depreciation expenses.

CITY OF SANTA BARBARA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS
(213)
Per
Personal Capita June 30
Fiscal City Income Personal Unemployment
Year Population (1) (in thousands) (2) Income (2) Rate (3) 2013 89,681 3,270,666 $ 36,470 $ 4.2%
2014 90,385 3,268,683 36,164 3.8%
2015 90,612 3,315,221 36,587 4.9%
2016 93,190 3,379,787 36,267 4.2%
2017 93,063 3,397,602 36,508 4.0%
2018 94,807 3,486,408 36,773 3.3%
2019 93,532 3,797,190 40,597 2.6%
2020 93,511 4,012,701 42,911 2.3%
2021 93,055 4,224,865 45,401 7.0%
2022 86,591 4,515,159 52,143 4.3%
Notes:

HdL, Coren & Cone Data Sources:
(1) Population data: California State Department of Finance. (3) Unemployment data: California Employment Development Department.

In Fiscal Year 2018, the City engaged HdL, Coren & Cone to provide data for the statistical section of the Annual Comprehensive Financial Report.
(2) 2000-2009 Income data - ESRI - Demographic Estimates are based on the last available Census.

Projections are developed by incorporating all of the prior census data released to date. 2010 and later Income data - US Census Bureau, most recent American Community Survey.

CITY OF SANTA BARBARA

PRINCIPAL EMPLOYERS
TEN LARGEST EMPLOYERS – SOUTH SANTA BARBARA COUNTY

CURRENT YEAR AND NINE YEARS AGO
(214)
Percentage of Percentage of
Number of Total Number of Total
Employer Employees (1) Employment Employer Employees (1) Employment County of Santa Barbara 4,400 5.12% University of California, Santa Barbara 10,063 18.26% University of California, Santa Barbara 4,250 4.95% County of Santa Barbara 4,383 7.95% Cottage Health 3,052 3.55% Cottage Health System 2,845 5.16% Mission Linen Supply 2,000 2.33% Santa Barbara Unified School District 2,531 4.59% AppFolio 1,350 1.57% Santa Barbara City College 1,791 3.25% Santa Barbara Unified School District 1,350 1.57% Raytheon Electronic Systems 1,400 2.54% Sansum 1,289 1.50% Santa Barbara County Education Office 1,029 1.87% Raytheon 1,100 1.28% City of Santa Barbara 998 1.81%
Procore Technologies 900 1.05% Sansum Medical Foundation Clinic 960 1.74% Goleta Union School District 700 0.81% US Postal Service 736 1.34% Ten largest companies or organizations 20,391 23.74% 26,736 48.52% Sources:
(1) County of Santa Barbara, City of Santa Barbara, Pacific Coast Business Times As of June 30, 2022 As of June 30, 2013
Source Notes: In preparing the FY22 principal employers schedule, the number of employees at 6/30/22 was taken entirely from the "Top 25 Santa Barbara County Employers" schedule in the Pacific Coast Business Times "2022 Book of Lists". The FY13 data was not taken from the City's FY13ACFR. This is because we previously used the County's numbers for any employers that appeared on the City's schedule. Effective FY18, the County is now using data from the Pacific Coast Business Times and revised the historical data accordingly.

CITY OF SANTA BARBARA

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
(215)
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Administration 101.9 101.8 105.6 106.5 106.5 108.3 111.3 103.0 106.0 110.3 Administrative services 25.5 25.5 28.5 30.5 30.5 30.5 31.5 28.0 29.0 32.0 City administrator 10.5 10.5 10.5 9.5 9.5 8.5 8.5 13.0 14.0 15.0 City attorney 11.4 11.3 11.6 11.0 11.0 13.8 15.8 15.0 16.0 16.8 Finance 46.5 46.5 47.0 47.5 47.5 47.5 47.5 39.0 39.0 38.5 Mayor and city council 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 Public safety 317.0 317.0 316.0 317.0 317.0 316.0 316.0 316.0 315.0 316.0 Police 207.0 207.0 211.0 212.0 212.0 211.0 210.0 210.0 209.0 210.0 Fire 110.0 110.0 105.0 105.0 105.0 105.0 106.0 106.0 106.0 106.0 Public works 138.0 139.0 144.0 143.0 140.0 141.0 143.0 142.0 142.0 146.8 Community services 115.2 116.7 122.4 126.5 131.6 132.8 125.5 123.0 124.0 129.8 Library 34.6 36.1 36.1 36.1 38.4 40.4 35.0 34.0 35.0 39.0 Parks and recreation 80.6 80.6 86.3 90.4 93.3 92.5 90.5 89.0 89.0 90.8 Community development 74.0 64.8 67.8 70.8 73.8 72.8 75.3 76.0 78.0 81.0 Water 68.3 67.3 68.8 74.3 75.3 72.8 72.8 70.5 71.5 71.0 Wastewater 49.0 49.0 49.0 49.0 49.0 52.5 52.5 56.5 56.5 57.0 Sustainability and resilience (2) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14.0 15.0 17.0 Airport 54.0 52.0 55.5 55.5 55.8 61.0 63.0 66.0 67.0 71.0 Waterfront 46.0 46.0 46.0 46.0 47.0 47.0 47.0 48.0 48.0 48.0 Parking and transportation 34.4 34.4 30.4 31.4 31.4 30.4 30.4 27.0 27.0 30.4 Golf (1) 12.8 10.3 10.3 9.8 0.0 0.0 0.0 0.0 0.0 0.0
Total 1,010.6 998.3 1,015.7 1,029.7 1,027.3 1,034.5 1,036.7 1,042.0 1,050.0 1,078.2 Note:

Source: City's Human Resources Department
Note:
(1) Effective July 1, 2016 operation of the golf course was contracted to a private management company.

Consequently, there were no golf employees at June 30, 2016 (2) Sustainability and resilience started in FY20
Full-time Equivalent Employees as of June 30

CITY OF SANTA BARBARA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
(216)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Year Year Year
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police
Criminal citations issued 3,172 4,282 5,298 3,511 1,087 932 815 665 485 687 Parking citations 46,450 55,555 55,700 55,716 59,580 59,613 72,038 49,439 55,439 51,554 Street sweeping citations 25,612 26,187 27,109 29,031 27,032 26,349 26,922 19,514 21,675 25,925 Fire
Number of calls received 8,038 8,165 8,341 9,102 9,891 9,240 10,583 7,312 9,198 11,292 Engine company fire inspections 2,773 2,661 3,116 2,890 2,450 2,329 2,034 924 - 564.00 Public works
Street resurfacing (Blocks) 26.2 32 23.7 14.2 8.4 11.3 36.0 54.0 31.0 0.0 Community services
Library items checked out 826,627 853,177 782,860 825,731 792,767 826,420 957,879 749,877 565,258 697,963 Community development
Building inspections completed 10,665 11,220 11,650 11,403 11,805 13,128 11,690 13,252 12,091 13,838 Total permits issued 2,373 2,412 2,580 2,818 2,571 2,777 2,741 2,438 2,388 2,273 Water
Million gallons water treated 7,481 7,527 4,960 4,247 4,132 4,600 4,016 4,382 5,558 2,687 Percent of drinking water regulations met 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Wastewater
Million gallons waste water treated 2,627 2,551 2,360 2,301 2,312 2,252 2,369 2,202 2,088 2,137 Miles of wastewater collection system pipes cleaned 217 230 219 262 219 277 346 280 275 330 Percent of discharge requirements met 100.0% 100.0% 100.0% 100% 100% 100% 100% 100% 100% 100% Airport
Total number of annual passengers 722,041 699,916 628,837 630,612 690,992 738,079 860,909 796,908 426,836 1,122,129 Annual tons of airfreight 1,813 1,764 1,800 1,794 1,736 1,943 1,838 1,675 1,758 1,607 Waterfront
Number of lease contracts managed 65656464656060616162
Number of parking permits distributed 564,294 702,622 814,800 765,471 781,419 727,345 736,660 609,178 754,696 840,583 Parking
Vehicles parked in city lots 4,324,000 4,430,000 4,488,773 4,433,780 4,358,066 4,128,353 4,118,116 2,797,736 1,672,513 2,076,236 Golf course
Paid rounds of golf 61,558 62,512 57,089 55,376 53,799 54,300 52,222 54,465 76,393 72,248 Source: Various City Departments
(All the information was found thru the P3 reports found on the Access P3 Database)

CITY OF SANTA BARBARA

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
(217)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Year Year Year
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police
Stations 1 1 1 1 1 1 1 1 1 1
Fire
Stations 8 8 8 8 8 8 8 8 8 8
Public works
Streets (miles) 238 254 254 255 255 255 254 254 254 254 Streetlights
Concrete installed-sidewalk, curb and gutter (sq ft.) 16,088 10,754 12,140 14,145 15,976 15,387 83,698 28,242 21,481 54,837 Community services
Parks acreage 1,765 1,765 1,765 1,765 1,808 1,808 1,810 1,815 1,815 1,815 Parks and sports facilities 54 56 57 57 60 60 60 60 60 60 Swimming pools 2222222222
Tennis and pickle ball courts 34 34 34 34 33 33 33 33 33 33 Community buildings 12 15 15 15 16 16 16 16 16 16
Libraries 2222222233
Number of volumes (books, periodicals, tapes, etc.) 319,898 330,703 330,773 439,773 396,055 564,103 506,195 521,414 454,560 436,554 munity development
Water
Number of distribution system reservoirs 15 15 15 15 15 15 15 15 15 15 Number of water supply reservoirs 1111111223
Number of pump stations 14 14 14 14 14 14 14 15 17 17
Number of treatment plants 2222333333
Number of wells 9 9 9 8 910 10999
Wastewater
Number of treatment plants 1111111111
Number of lift stations 9997777777
Airport
Runways and Taxiways, paved surface (sq. footage) 6,842,079 6,842,079 6,842,079 6,842,079 6,842,079 6,842,079 6,842,079 6,943,779 6,784,710 6,784,710 Waterfront
Number of harbor slips 1,139 1,139 1,139 1,139 1,143 1,141 1,143 1,143 1,143 1,143 Parking
Number of parking structures and lots 15 15 16 16 15 15 15 15 15 15 Number of parking spaces 3,620 3,548 3,628 3,628 3,605 3,605 3,605 3,605 3,605 3,605

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: April 16, 2024
TO: Mayor and Councilmembers
FROM: City Attorney’s Office
SUBJECT: Short-Term Rental Enforcement Pilot Program Update and Request for Extension
RECOMMENDATION:

That Council receive an update on the Short-Term Rental Enforcement Pilot Program and extend the program for another fiscal year. No additional funding is requested.

DISCUSSION:

On April 25, 2023, the City Council approved the appropriation of $1,175,000 in funds for the creation of a 12-Month Short-Term Rental Enforcement Pilot Program. Being mindful of spending taxpayer money, the City Attorney’s Office took all possible steps to use the allocated funds judiciously. To date, $99,083.59 has been used from the allocated amount of $1,175,000. In addition, the Program has successfully collected $502,879.40 in back taxes, interest, penalties, and fees ($269,271.96 for properties in the coastal zone and $233,607.44 for properties in the inland area).

The Program is currently set to expire at the end of this fiscal year. The City Attorney’s Office is requesting that the City Council extend this Program for another fiscal year to July 2025. No additional funding is being requested. This report contains the progress of the Program and the funds used to date.

Progress of the Pilot Program
The 12-Month Short-Term Rental Enforcement Pilot Program officially launched on August 1, 2023. Since that date, the Program has enforced or is currently enforcing 151 cases. A telephone hotline and an online complaint portal were created for citizens to report short-term rental violations. There are currently 57 cases in progress. The Program has successfully obtained voluntary compliance on 45 cases. Eighteen cases were determined to be unfounded. Six cases were determined to be outside of the city limits.

Agenda Item No. 9
File Code No. 660.01
Council Agenda Report
Short-Term Rental Enforcement Pilot Program Update and Request for Extension April 16, 2024

Page 2 ends

Santa Barbara City CouncilApril 16, 2024

Santa Barbara City Council
April 16, 2024