Agenda packet, first session — Santa Barbara City Council, March 18, 2025 (part 2 of 4)

three-month rent deferment would allow the Breakwater Restaurant to maintain its financial stability during construction.

Staff recommends approving the proposed rent deferment plan based on the significant investment (over $600,000) being made by the tenant in the property and anticipated loss of business due to the construction. Allowing for the deferment also supports the tenants’ commitment to improving the quality and appeal of the leased space.

Proposed Amendments:

Considering the extensive nature of the renovations and the financial investment of the project, Breakwater LLC contacted the Waterfront Department about amending the lease by proposing a 3-month rent deferment to help manage their financial obligations during this period.

The base rent due during this period, a three-month total of $34,708.05 will not be waived but will instead be amortized starting May 2025 through the end of the lease in November 2030. This arrangement will provide the tenant with financial relief during the construction period while ensuring that the Waterfront Department recovers the full rent amount over the remaining lease term.

All other lease terms remain the same.

The Harbor Commission recommended approval of the proposed amendment at their meeting of January 16, 2025.

BUDGET/FINANCIAL INFORMATION:

The lease revenue impacts have been incorporated into the Fiscal Year 2025 revenue projections in the Waterfront’s operating budget.

A copy of the lease agreement is available for public review from the Waterfront Department; please email [email protected] to request a copy.

PREPARED BY: Cesar Barrios, Waterfront Business Manager SUBMITTED BY: Mike Wiltshire, Waterfront Director
APPROVED BY: Kelly McAdoo, City Administrator
COUNCIL INTRODUCTION 03/18/2025
ORDINANCE NO._____

AN ORDINANCE OF THE COUNCIL OF THE CITY OF

SANTA BARBARA APPROVING AND AUTHORIZING THE

WATERFRONT DIRECTOR TO EXECUTE AN
AMENDMENT TO LEASE AGREEMENT NO. 25,399 WITH

BREAKWATER LLC, DBA BREAKWATER RESTAURANT,

DEFERRING THREE MONTHS BASE RENT WITH LEASE
TERMS ENDING NOVEMBER 30, 2030, COMMENCING

UPON THE EFFECTIVE DATE OF THE ENABLING
ORDINANCE.

THE COUNCIL OF THE CITY OF SANTA BARBARA DOES ORDAIN AS FOLLOWS:

SECTION 1. In accordance with the provisions of Section 521 of the Charter of the City of Santa Barbara, An Ordinance of the Council of the City of Santa Barbara Approving the Amendment to Lease Agreement No. 25,399 With Breakwater LLC, Dba Breakwater Restaurant, upon the effective date of the enabling ordinance.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Contracts for Environmental and Construction Support Services for De La Vina Street Bridge Replacement Project [Resolution; Agreement] RECOMMENDATION: That Council:

A. Authorize the Public Works Director to execute a City Professional Services contract with Catalyst Environmental Solutions Corporation in the amount of $480,166 for environmental monitoring, restoration, and support services of the De La Vina Street Bridge Replacement Project and authorize $48,016 for potential extra services, for a total expenditure authority of $528,182; B. Authorize the Public Works Director to execute a City Professional Services contract with Filippin Engineering, Inc. in the amount of $2,129,210 for construction support services of the De La Vina Street Bridge Replacement Project and authorize $212,921 for potential extra services, for a total expenditure authority of $2,342,131; and
C. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to Appropriate Funds for the De La Vina Street Bridge Replacement Project.

EXECUTIVE SUMMARY:

Design of the De La Vina Street Bridge Replacement Project (Project) began in 2016.

The Project included a lengthy right of way acquisition phase and complicated design and utility coordination. The Project is currently advertised to bid, with construction anticipated to begin in May 2025. Due to the complexity of construction and environmental requirements, staff recommends that Council award contracts with Filippin Engineering Inc., (FE) and Catalyst Environmental Solutions Corporation (Catalyst) to provide construction management and environmental support services during construction. The construction contract is expected to be awarded in April 2025.

Agenda Item No. 4
File Code No. 530.04
Council Agenda Report
Contracts for Environmental and Construction Support Services for De La Vina Street Bridge Replacement Project [Resolution; Agreement]
March 18, 2025

Page 2 ends

DISCUSSION:

Background
In March 2016, the City of Santa Barbara (City) received authorization through Caltrans from the Federal Highway Administration (FHWA) to initiate the engineering design phase for the De La Vina Street Bridge Replacement Project (Project). The De La Vina Street Bridge (Bridge) was designated as “structurally deficient,” due to structural inadequacy because elements of the structure (the deck and superstructure) are in poor condition.

The structural evaluation indicated the Bridge is not suitable for rehabilitation and requires replacement.

Design began in August of 2016, and due to complications with utility relocations and right-of-way acquisitions, the design concluded in late 2024. The Project was granted construction authorization in February 2025 by the FHWA and is currently being advertised for construction.

Project Description
The Project will replace the existing Bridge located on the 2700 block of De La Vina Street between Vernon Road and Alamar Avenue over Mission Creek with a new bridge. The new bridge will meet current structural and geometric standards, while minimizing adverse impacts on Mission Creek and the surrounding riparian area. The Project will also improve safety and accessibility for pedestrian and cyclists and improve safety for motorists.

The Project will also realign roadway approaches, abate hazardous building materials, relocate utilities including domestic water and sanitary sewer facilities, construct channel walls, plant landscape materials, restore the Creek and habitat, and add storm water treatment facilities.

Construction is anticipated to take approximately two years during which De La Vina Street will be closed to northbound traffic between Arden Road and Alamar Avenue until the Project is complete. The Project will be constructed in two phases starting with the downstream side of the Bridge in the first year and shifting to the upstream side in the second year.

The Project is primarily funded with FHWA Highway Bridge Program (HBP) grant funds.

The Project is currently advertised and the construction contract is expected to be awarded in April 2025. The recommended contracts will support the upcoming construction.

Council Agenda Report
Contracts for Environmental and Construction Support Services for De La Vina Street Bridge Replacement Project [Resolution; Agreement]
March 18, 2025

Page 3 ends

Construction Phase Contract Services
Staff recommends that Council authorize the Public Works Director to execute a contract with Catalyst in the amount of $480,166 for environmental monitoring, restoration, and support services of the Project and authorize $48,016 for potential extra services, for a total expenditure authority of $528,182. Catalyst was selected as part of a competitive Request for Qualifications process that followed Caltrans Local Assistance Procedures Manual (LAPM) requirements. Five proposals were received. Catalyst was deemed the most qualified firm for the Project. Following the review of proposals, City staff worked with Catalyst to clarify the scope and negotiate the fee for the environmental support services during construction. The negotiated scope and fee are fair and reasonable costs to the City.

In addition, staff recommends that Council authorize the Public Works Director to execute a contract with FE in the amount of $2,129,210 for construction management, inspection, and material testing services and authorize $212,921 for potential extra services, for a total expenditure authority of $2,342,131. FE was selected as part of a competitive Request for Qualifications process that followed Caltrans LAPM requirements. Five proposals were received. FE was deemed the most qualified firm for the Project.

Following the review of proposals, City staff worked with FE to clarify the scope and negotiate the fee for construction management services. The negotiated scope and fee are fair and reasonable costs to the City.

Community Outreach
Community outreach for the Project was initiated in the conceptual design phase and will continue throughout design and construction. The design was fully vetted through both an internal and public review process. The Project has been reviewed by the Architectural Board of Review and has been granted design approval. Hamner Jewel and Associates met with each impacted business owner and property owner, discussed the Project’s direct impacts on their property, and presented offers to each impacted property owner in accordance with the specific right-of-way needs. Business and property owner coordination follows the process outlined by the LAPM. Elements of community outreach will be included in the construction contract, and a robust outreach plan will be implemented prior to and during construction.

BUDGET/FINANCIAL INFORMATION:

This Project is primarily funded by the HBP, which is administered by the FWHA through Caltrans Local Assistance. HBP funds will be used to reimburse the City for 88.53 percent of design, right-of-way, and construction costs. The City’s grant fund match rate is 11.47 percent. With the recommended appropriation of HBP construction grant funds in the amount of $10,260,627 there will be sufficient expenditure appropriations in the Streets Council Agenda Report
Contracts for Environmental and Construction Support Services for De La Vina Street Bridge Replacement Project [Resolution; Agreement]
March 18, 2025

Page 4 ends

Grant Capital Fund budget in Fiscal Year 2025 to cover the cost of the proposed contracts, including potential extra services, with Catalyst and FE. Additional appropriations will be requested at the time of award of the construction contract based on final bids.

The following table summarizes the construction services support contracts recommended for award:

CONSTRUCTION SERVICES CONTRACT FUNDING SUMMARY
Base
Contract
Extra Services
Allowance
Total
Expenditure
Authority
Consultant Environmental Services
(Catalyst)
$480,166 $48,016 $528,182
Construction Management /
Inspection Services (FE)
$2,129,210 $212,921 $2,342,131
Total $2,609,376 $260,937 $2,870,313
Copies of the contracts may be requested from the Public Works Department for public review by contacting [email protected].

ENVIRONMENTAL REVIEW:

The Project is subject to environmental regulations under the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA). The Project was determined to qualify for exemptions under CEQA Guideline Section 15302, Replacement or Reconstruction. The CEQA determination was made on April 14, 2021. The State Clearinghouse number is 2024061026. The Project was determined by Caltrans to have no significant impacts on the environment as defined by NEPA. The State determined that the Project is a Categorical Exclusion under 23 Code of Federal Regulations § 771.117 (C)(9)(ii)(A) on January 20, 2020. All required regulatory approvals have been issued to the City.

PREPARED BY: Ashleigh A. Sizoo, P.E., Acting City Engineer/EG/sk SUBMITTED BY: Brian D’Amour, P.E., Acting Public Works Director APPROVED BY: Kelly McAdoo, City Administrator
RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 24-066,
ADOPTING THE BUDGET FOR FISCAL YEAR 2025, TO

APPROPRIATE FUNDS FOR THE DE LA VINA STREET

BRIDGE REPLACEMENT PROJECT
WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2024; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2024;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 24-066, this Resolution approves the amendment to the budget as provided herein.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT in accordance with the provisions of Section 1205 of the City Charter, the budget for the Fiscal Year 2025, as adopted by Resolution No. 24-066, is hereby amended as follows:

SECTION 1. The Council accepts the Federal Highway Administration Highway Bridge Program grant funds in the amount of $10,260,627 for the De La Vina Street Bridge Replacement Project.

SECTION 2. The Council approves of the increase in revenue and expenditure appropriations in the Streets Grant Capital Fund in the amount of $10,260,627 in Fiscal Year 2025, funded by the Federal Highway Administration Highway Bridge Program grant funds, for the De La Vina Street Bridge Replacement Project.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Contract for Construction of Fiscal Year 2025A Project and Contracts for Construction Support Services for Fiscal Year 2025A, 2022B, and 2023C Pavement Maintenance Projects [Resolution; Agreement] RECOMMENDATION: That Council:

A. Award a contract to American Asphalt South, Inc., in their low bid amount of $1,942,658 for construction of the Fiscal Year 2025A Pavement Maintenance Project, Bid No. 5077, and authorize the Public Works Director to execute the contract and approve expenditures up to $194,265 to cover any cost increases that may result from contract change orders for extra work and differences between estimated bid quantities and actual quantities measured for payment, for a total expenditure authority of $2,136,923;
B. Authorize the Public Works Director to execute a contract with Flowers & Associates, Inc. in the amount of $303,879 for construction monitoring and documentation for the Fiscal Year 2025A Pavement Maintenance Project, and approve expenditures of up to $30,387 for extra services of Flowers & Associates, Inc., for a total expenditure authority of $334,266;
C. Authorize the Public Works Director to execute the Second Amendment to City Professional Services Agreement No. 28,240 with Flowers & Associates, Inc. in the amount of $348,178 for construction monitoring and documentation for the Fiscal Year 2022B Pavement Maintenance Project, for a total expenditure authority of $1,216,115;
D. Authorize the Public Works Director to execute the Second Amendment to City Professional Services Agreement No. 28,366 with Flowers & Associates, Inc. in the amount of $204,730 for construction for the Fiscal Year 2023C Pavement Maintenance Project, for a total expenditure authority of $790,387; and E. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to Appropriate Local Surface Transportation Program Grant Funds for the Fiscal Year 2025A Pavement Maintenance Project and Program Support.

Agenda Item No. 5
File Code No. 530.04
Council Agenda Report
Contract for Construction of Fiscal Year 2025A Project and Contracts for Construction Support Services for Fiscal Year 2025A, 2022B, and 2023C Pavement Maintenance Projects [Resolution; Agreement]
March 18, 2025

Page 2 ends

DISCUSSION:

FY 2025A Pavement Maintenance Project
The Fiscal Year 2025A Pavement Maintenance Project (FY 25A Project) will address high priority pavement maintenance needs throughout the City of Santa Barbara (City). The FY 25A Project consists of removing and replacing failed sections of asphalt pavement, followed by crack sealing and slurry sealing of City streets. Slurry seals extend the life of existing pavements by protecting the undersurface from the effects of aging and the environment, including water intrusion. The maintenance work is anticipated to take place between the summer and winter of 2025. A list of streets included in the FY 25A Project is included as an attachment.

A total of four bids were received for the FY 25A Project, ranging as follows:

BIDDER BID AMOUNT

1. American Asphalt South, Inc.

Riverside, California
$1,942,658.00

2. VSS International, Inc.

West Sacramento, California
$2,820,120.00

3. Roy Allen
Santa Fe Springs, California
$2,857,395.80

4. Pavement Coatings Company
Jurupa Valley, California
$2,875,066.00
The low bid of $1,942,658.00, submitted by American Asphalt South, Inc. (AAS), is a responsive and acceptable bid that meets the requirements of the bid specifications. The change order funding recommendation of $194,265, or 10 percent, is typical for this type of work and size of project.

In Fiscal Year (FY) 2019, Flowers & Associates, Inc. (Flowers) was selected through a competitive Request for Qualifications process to provide design and construction support services for the City’s Annual Pavement Maintenance Projects for FY 2020 through 2025.

For the FY 2025A Project, staff recommends that Council authorize the Public Works Director to execute a contract with Flowers in the amount of $303,879 for construction management, inspection, and testing services, with $30,387 for potential extra services, for a total expenditure authority of $334,266.

Council Agenda Report
Contract for Construction of Fiscal Year 2025A Project and Contracts for Construction Support Services for Fiscal Year 2025A, 2022B, and 2023C Pavement Maintenance Projects [Resolution; Agreement]
March 18, 2025

Page 3 ends

Construction Phase Contract for the FY 2022B Pavement Maintenance Project The FY 2022B Pavement Maintenance Project (FY 22B Project) is currently in construction. Staff recommends that Council authorize the Public Works Director to execute the Second Amendment to Contract No. 28,240 with Flowers in the amount of $348,178, bringing the new total expenditure authority to $1,216,115. The Second Amendment is for additional construction management, inspection, and testing services for the FY 22B Project to accommodate increases in scope and duration of the original contract. The additional scope is to complete additional surveys and construct access ramp improvements in Santa Barbara’s Westside neighborhood, State Street, and Carrillo Street.

Construction Phase Contract for the FY 2023C Pavement Maintenance Project The FY 2023C Pavement Maintenance Project (FY 23C Project) is currently in construction. Staff recommends that Council authorize the Public Works Director to execute the Second Amendment to Contract No. 28,366 with Flowers in the amount of $204,730, bringing the new total expenditure authority to $790,387. The Second Amendment is for additional construction management, inspection, and testing services for the FY 23C Project to accommodate increases in scope and duration to the original contract.

Community Outreach
Following the award of the construction contract, staff will send notifications to residents and property owners to provide detailed information about the upcoming work in their neighborhood. The contractor is required to perform door-to-door outreach with all properties directly affected by the work two weeks prior to the scheduled work and deliver door hangers 72 hours in advance of the commencement of work. “No Parking” signs will be posted by the contractor 72 hours in advance of work commencement.

BUDGET/FINANCIAL INFORMATION:

This Project is primarily funded by Senate Bill 1 (SB 1), Local Surface Transportation Program (LSTP) grant funds, with a minor contribution of Measure C funds. With the recommended appropriation of LSTP grant funds ($683,026), there are sufficient expenditure appropriations in the FY 2025 budget for the Streets Capital, Streets Grant Capital, and Measure C Capital Funds to cover the construction costs of the FY 25A Project, including the proposed contract with AAS, and the proposed increased contract costs with Flowers for the FY 22B Project and the FY 23C Project.

Page 4 ends

The following summarizes all FY 25A Project design costs, construction contract funding, and other Project costs:

ESTIMATED TOTAL FY 25A PROJECT COST
*Cents have been rounded to the nearest dollar in this table.

LSTP
GRANT
CITY
SHARE*
TOTAL
Design Consultant (Flowers) $0 $404,352 $404,352
City Staff Design Management $0 $20,000 $20,000
Design Subtotal $0 $424,352 $424,352
Construction Contract (AAS) $683,026 $1,259,632 $1,942,658 Construction Change Order Allowance $0 $194,265 $194,265 Subtotal $683,026 $1,453,897 $2,136,923
Construction Support Services (Flowers)
includes extra services allowance $0 $334,266 $334,266
City Staff Construction Management $0 $95,782 $95,782
Subtotal $0 $430,048 $430,048
Construction Subtotal $683,026 $1,883,945 $2,566,971
TOTAL PROJECT COST $683,026 $2,308,297 $2,991,323
*Includes SB 1 funds
The SB 1 and LSTP grant funds will contribute $2,890,013 to the total Project cost, with the remaining costs funded by Measure C.

Copies of the contracts may be requested from the Public Works Department for public review by contacting [email protected].

ENVIRONMENTAL REVIEW:

Under Santa Barbara Municipal Code (SBMC) § 22.100.070 and § 22.100.080, the Public Works Director has determined that the FY 25A Project is exempt under California Environmental Quality Act (CEQA) Guidelines § 15301. The FY 22B and FY 23C Projects were previously determined to be exempt under the California Environmental Quality Act Section §15301 (Existing Facilities) on September 15, 2022, and June 12, 2023, State Clearinghouse Numbers 2022080335 and 2023070471, respectively.

Page 5 ends

ATTACHMENT: Fiscal Year 2025A Pavement Maintenance – List of Streets PREPARED BY: Ashleigh A. Sizoo, P.E., Acting City Engineer/MLM/sk SUBMITTED BY: Brian D’Amour, P.E., Acting Public Works Director APPROVED BY: Kelly McAdoo, City Administrator

ATTACHMENT
FY 25A Pavement Maintenance Project
Streets Proposed for Slurry Seal Treatment
Street Name From To
Baldwin Road East/South Las Positas North/South Romaine Bath Street North/South Haley Street South/South Carrillo Street North. Canada
Street South/South Haley Street North/South Montecito Street South. Canada
Street
South/South Clifton
Street North/South Pitos
Canon Perdido West/South Chapala
Street East/South Bath Street
Castillo Street North/South Carrillo
Street
South/South Micheltorena
Street
Coronel Place West/South Rancheria
Street End
De La Guerra
Street
West/South Chapala
Street East/South Bath Street
Gillespie Street South/South Portesuello
Avenue
North/South Mission Street
Hollister Avenue
West/South Fairview
(City Limit)
East/South Los Carneros
(City Limit)
Hutash Street West/South Salinas
Street End
Las Positas
Road North/South Calle Real South/South State Street
Meigs Road South/South Cliff Drive South/South Lighthouse Place
Rancheria
Street
South/South Coronel
Place
North/South Montecito Street
San Andres
Street
South/South Mission
Street
North/South Micheltorena
Street
San Pascual
Street
South/South Mission
Street
North/South Micheltorena
Street
San Pascual
Street
South/South Carrillo
Street North/South Coronel Pl
Shoreline Drive South/South Lighthouse
Place
West/South Loma Alta
Torina Drive West/South Senda Verde End
Treasure Drive North/South Calle Real South/South Tallant Road RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 24-066,
ADOPTING THE BUDGET FOR FISCAL YEAR 2025, TO

APPROPRIATE LOCAL SURFACE TRANSPORTATION
PROGRAM GRANT FUNDS FOR THE FISCAL YEAR 2025A

PAVEMENT MAINTENANCE PROJECT AND PROGRAM

SUPPORT
WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2024; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2024;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 24-066, this Resolution approves the amendment to the budget as provided herein.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SANTA BARBARA THAT In accordance with the provisions of Section 1205 of the City Charter, the budget for the Fiscal Year 2025, as adopted by Resolution No. 24-066, is hereby amended as follows:

SECTION 1: The Council approves an increase in revenue and expenditure appropriations in the Streets Grant Capital Fund in Fiscal Year 2025 in the amount of $683,026, funded by 2025 Local Surface Transportation Program grant funds, for the Fiscal Year 2025A Pavement Maintenance Project.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Parks and Recreation Department
SUBJECT: Grant Agreement in the Amount of $947,850 with the California State Coastal Conservancy for the City of Santa Barbara Wildfire Resilience Project [Resolution; Agreement]
RECOMMENDATION: That Council:

A. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Authorizing the Parks and Recreation Director to Enter into a Grant Agreement Between the City and the California State Coastal Conservancy for the City of Santa Barbara Wildfire Resilience Project; and
B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to Increase Revenue and Expenditure Appropriation by $947,850 in the Parks and Recreation Department Fiscal Year 2025 Miscellaneous Grants Fund for the Wildfire Resiliency Project.

DISCUSSION:

Project Background
In 2023, the Parks and Recreation Department (Department), together with the Fire Department, launched an ambitious Wildfire Resiliency Project (Project) in City open space parks. This Project is consistent with the City’s comprehensive Community Wildfire Protection Plan (CWPP), adopted in 2021, to reduce risks to people, property, and open spaces from wildfires.

Santa Barbara and surrounding areas face a high wildfire risk due to the area's challenging terrain, diverse vegetation, and mix of wildland and urban areas. The region has a history of severe wildfires, including the 1990 Paint Fire, 2009 Jesusita Fire, and 2017 Thomas Fire. Through the Wildfire Resiliency Project, the City of Santa Barbara implements CWPP objectives via reducing wildfire hazards and risks at the wildland urban interface through fire protection, reducing fuel hazards, and educating the public in preparedness efforts.

Agenda Item No. 6
File Code No. 570.05
Council Agenda Report
Grant Agreement in the Amount of $947,850 with the California State Coastal Conservancy for the City of Santa Barbara Wildfire Resilience Project [Resolution; Agreement] March 18, 2025

Page 2 ends

Project Description
The Project seeks to reduce wildfire risk across City open spaces and parks, which leads to a reduced fire risk in adjacent neighborhoods and ultimately, the city at large. To date, the Project has been primarily funded by two grants. The first for $525,000 from the State Coastal Conservancy and the second for $2,889,902.32 from CalFire. The new grant will increase the total funding for wildlife resiliency efforts to $4.36 million and allow the City to continue the program through 2029.

There are five priorities for this Project: defensible space, fire access roads and fuel breaks, native habitat enhancement and restoration, fuel load reduction, and community outreach and education.

State Coastal Conservancy Grant
In July 2024, the Department applied for $947,850 to augment the existing grant of $525,000 awarded in 2023 through the State Coastal Conservancy Wildfire Resilience Grant Program. On November 21, 2024, the Coastal Conservancy Board approved the grant augmentation. The Conservancy Grant Program guidelines require that the City Council adopt a resolution approving the execution of the grant agreement.

The new grant funds will expand the work efforts related to native vegetation restoration.

Open space parks in Santa Barbara experience varying degrees of impact from invasive species. Many of these open spaces were previously used for residential purposes, ranches, nurseries, and farms before being dedicated as parkland. Additionally, all the City’s parks are located within either an urban setting or the Wildland Urban Interface.

Consequently, most have undergone significant human impacts and the introduction of nonnative species, which increase wildfire risk.

The work will focus on removing ladder fuels, such as vining invasives that connect ground-level fuels to canopy-level fuels in six open space parks: Honda Valley, Franceschi, Stevens, Hidden Valley, La Mesa, and Escondido. Restoration efforts will incorporate native species that are naturally fire-resilient and implement practices like shaded fuel breaks to promote fire-resilient green spaces.

Additionally, grant funding will be used for restoration projects in three parks, Franceschi, La Mesa, and Escondido. In total, the three parks with restoration sites will restore approximately 3.5 acres of open space land.

BUDGET/FINANCIAL INFORMATION:

The total project budget for the Wildfire Resilience Project is $4,514,552, including $947,850 of funding through the new grant. The Department is providing $64,000 in matching funds for Project Management and Administration. The in-kind value of staff hours for implementation does not require new appropriations to the Parks and Recreation Department’s annual operating or capital program budgets.

Council Agenda Report
Grant Agreement in the Amount of $947,850 with the California State Coastal Conservancy for the City of Santa Barbara Wildfire Resilience Project [Resolution; Agreement] March 18, 2025

Page 3 ends

SUSTAINABILITY IMPACT:

The Project will reduce fire risk while avoiding disruption of the natural ecosystem, taking an active step in making the City of Santa Barbara a more fire-wise and resilient community. The Project will support a long-term, comprehensive and sustainable approach to hazardous fuels management.

A copy of the agreement may be requested from Parks and Recreation for public review by emailing [email protected].

PREPARED BY: Jazmin LeBlanc, Assistant Parks and Recreation Director SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: Kelly McAdoo, City Administrator
RESOLUTION NO. _____

RESOLUTION OF THE COUNCIL OF THE CITY OF SANTA

BARBARA AUTHORIZING THE PARKS AND

RECREATION DIRECTOR TO ENTER INTO A GRANT

AGREEMENT BETWEEN THE CITY AND THE

CALIFORNIA STATE COASTAL CONSERVANCY FOR

THE CITY OF SANTA BARBARA WILDFIRE RESILIENCE

PROJECT
WHEREAS, The California State Coastal Conservancy authorizes $947,850 of non-bond funded monies to be used to support activities that increase fire safety in Santa Barbara open space parks; and
WHEREAS, the California State Coastal Conservancy has agreed to provide the City of Santa Barbara with $947,850 to expand the Wildfire Resiliency Project to conduct invasive plant removal on an additional 25 acres across six parks and implement active restoration projects on approximately 5 acres of parkland.

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

1. Approves the application and agreement between the City of Santa Barbara and the California State Coastal Conservancy for grant funds in the amount not to exceed $947,850 for the Santa Barbara Wildfire Resiliency Project (the “Project”) according to the terms and conditions set forth in the agreement.

2. Certifies that City has or will have sufficient funds to operate and maintain the Project.

3. Certifies that funds under the jurisdiction of the Council of the City of Santa Barbara are available to begin the Project.

4. Certifies that City will expend grant funds prior to December 31, 2029.

5. Appoints the Parks and Recreation Director, or their designee, as agent of the Council of the City of Santa Barbara to conduct all negotiations, execute, and submit all documents including, but not limited to agreements, amendments, payment requests, and so on, which may be necessary or convenient for the completion of the Project.

RESOLUTION NO. _____

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 24-066,
ADOPTING THE BUDGET FOR FISCAL YEAR 2025, TO

INCREASE REVENUE AND EXPENDITURE
APPROPRIATION BY $947,850 IN THE PARKS AND
RECREATION DEPARTMENT FISCAL YEAR 2025

MISCELLANEOUS GRANTS FUND FOR THE WILDFIRE

RESILIENCY PROJECT
WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2024; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2024;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 24-066, this Resolution approves the amendment to the budget as provided herein.

NOW, THEREFORE, be it resolved by the Council of the City of Santa Barbara that in accordance with the provisions of Section 1205 of the City Charter, the budget for the fiscal year 2025, as adopted by Resolution No. 24-066, is hereby amended as follows:

1. The Council approves of the increase in revenue and expenditure appropriation of $947,850 in the Fiscal Year 2025 Parks and Recreation Department Miscellaneous Grants Fund budget.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Library Department
SUBJECT: Library Department Acceptance of Lunch at the Library 2025 Grant [Resolution]
RECOMMENDATION: That Council:

A. Accept a grant in the amount of $39,042 from the California State Library for free summer meals and programming for children and teens in Summer 2025; and B. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to Accept a Grant in the Amount of $39,042 Funded by the California State Library.

DISCUSSION:

Over 1 in 10 youth under 18 in Santa Barbara County face food insecurity. With this California State Library funding, Library staff will employ teen interns, purchase program supplies, compensate performers and partners, and fund promotional materials for the Lunch at the Library program and Summer Lunch Outreach. These funds will enrich learning and library access at free lunch programs in the City of Santa Barbara and ensure that messaging about free lunch and library programs reaches vulnerable families in our community. In addition, Library teen interns and Library staff bring services and learning activities to free lunch sites for children in different neighborhoods throughout the City of Santa Barbara, using the Library on the Go vehicle whenever possible.

Over the last several years, the Library has successfully applied for and received this grant. In 2024, the City has been awarded $85,197 and was able to:
 Serve 1,780 children over 41 days between June 2024 and August 2024, providing access to free healthy meals and enriching activities  Hire 6 teen interns (who cumulatively worked 961 hours between June 2024 and August 2024), providing them with development opportunities like job shadowing, Agenda Item No. 7
File Code No. 570.04
Council Agenda Report
Library Department Acceptance of Lunch at the Library 2025 Grant [Resolution] March 18, 2025

Page 2 ends

resume building, and emotional intelligence workshops, and opportunities to support program preparations and tabling at outreach events.

BUDGET/FINANCIAL INFORMATION:

By accepting this grant, the Library Department will increase revenue and expenditure appropriation of $39,042 in the Fiscal Year 2025 Library Miscellaneous Grants budget.

PREPARED BY: Kathrin Rosenberger, Administrative Analyst SUBMITTED BY: Brandon Beaudette, Acting Library Director APPROVED BY: Kelly McAdoo, City Administrator
RESOLUTION NO. _____

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 24-066,
ADOPTING THE BUDGET FOR FISCAL YEAR 2025, TO
ACCEPT A GRANT IN THE AMOUNT OF $39,042 FUNDED
BY THE CALIFORNIA STATE LIBRARY.

WHEREAS, the City was awarded a grant in the amount of $39,042 from California State Library for free summer meals and programming for children and teens in Summer 2025; WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2024; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2024;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 24-066, this Resolution approves the amendment to the budget as provided herein.

NOW, THEREFORE, be it resolved by the Council of the City of Santa Barbara that:

1. The Council accepts the 2025 Lunch at the Library grant funding in the amount of $39,042.

2. In accordance with the provisions of Section 1205 of the City Charter the budget for fiscal year 2025 (Resolution No. 24-066) is amended to increase revenue appropriations and expenditure appropriation of $39,042 in the Fiscal Year 2025 Library Miscellaneous Grants Fund.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Parks and Recreation Department
SUBJECT: License Agreements with Beach Rental Concessions [Resolution; Agreement]
RECOMMENDATION: That Council:

A. Authorize the Parks and Recreation Director to execute an approximately two-year license agreement with Air Brothers LLC to operate a rental concession at Leadbetter Beach;
B. Authorize the Parks and Recreation Director to execute an approximately two-year license agreement with Cal Coast Adventures LLC to operate a rental concession at West Beach;
C. Authorize the Parks and Recreation Director to execute an approximately two-year license agreement with Bliss Beach LLC to operate a rental concession at East Beach; and
D. Adopt, by reading of title only, a Resolution of the Council of the City of Santa Barbara Amending Resolution No. 24-066, Adopting the Budget for Fiscal Year 2025, to Increase Revenue Appropriations by $68,583 in the Parks and Recreation Department Fiscal Year 2025 General Fund for the Waterfront Concession License Agreements.

DISCUSSION:

In exchange for a licensing fee paid to the City , the proposed license agreements permit Air Brothers LLC, Cal Coast Adventures LLC and Bliss Beach LLC to provide persons enjoying the city beachfront with the opportunity to rent water sports equipment – such as paddleboards, kayaks, and boogie boards – along with rentals of temporary beach umbrellas, cabanas, beach chairs, hammocks, towels, and the sale of sunscreen, bottled water and other beach sundries.

Agenda Item No. 8
File Code No. 570.06
Council Agenda Report
License Agreements with Beach Rental Concessions [Resolution; Agreement] March 18, 2025

Page 2 ends

The Department conducted a competitive Request For Proposals (RFP) process to find qualified vendors to provide these services.

The new license agreements cover a 21-month period from April 1, 2025, through December 31, 2026.

BUDGET/FINANCIAL INFORMATION:

The three proposed agreements establish a first-year, one-time annual payment to the Department totaling $90,631, followed by a second-year payment of $108,675.

The Fiscal Year 2025 Parks and Recreation operating budget currently includes $22,048 in projected revenue for beach concessions. With implementation of the new Beach Rental Concession Agreements, the Department anticipates an additional $68,583 in revenue, bringing the total revised revenue projection to $90,631.

Copies of the agreements may be requested from the Parks and Recreation Department for public review by contacting Courtney Carlson at [email protected].

PREPARED BY: Adam Porte, Recreation Manager
SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: Kelly McAdoo, City Administrator
RESOLUTION NO.

A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA BARBARA AMENDING RESOLUTION NO. 24-066,
ADOPTING THE BUDGET FOR FISCAL YEAR 2025, TO
INCREASE REVENUE APPROPRIATIONS BY $68,583 IN

THE PARKS AND RECREATION DEPARTMENT FISCAL
YEAR 2025 GENERAL FUND FOR THE WATERFRONT

CONCESSION LICENSE AGREEMENTS
WHEREAS, in accordance with the City Charter, the City Administrator filed with the Council a proposed budget for the fiscal year beginning July 1, 2024; WHEREAS, the City Council is required to adopt a budget before the beginning of the fiscal year on July 1, 2024;
WHEREAS, the City Charter provides that at any public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least a majority of the total members of the City Council; and WHEREAS, as authorized by Resolution No. 24-066, this Resolution approves the amendment to the budget as provided herein.

1. The Council approves of the increase in revenue appropriation of $68,583 for the additional revenue anticipated from the new Beach Rental Concession Agreements in the Fiscal Year 2025 Parks and Recreation Department Operating budget.

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Contract Amendment for Geotechnical Support Services for the Santa Barbara Police Station Project [Agreement]
RECOMMENDATION:

That Council authorize the Public Works Director to execute the First Contract Amendment with Earth Systems Pacific, Inc., for pre-construction geotechnical support services for the Santa Barbara Police Station Project, Contract No. 22500025, in the amount of $55,221, for a new total expenditure authority of $139,187. .

DISCUSSION:

The Santa Barbara Police Station Project (Project) was funded with the passage of Measure C in 2017. Pre-construction work is underway, and construction will begin soon.

Since 2019, Earth Systems Pacific, Inc. (Earth Systems) has been the Project’s geotechnical professional providing multiple studies, soils borings and testing, and consulting through structural design. The expanded scope of services of this amendment is for water table and soils testing required by the County of Santa Barbara’s Department of Environmental Health Services (EHS).

BUDGET/FINANCIAL INFORMATION:

The following table summarizes the construction services support contract amendment recommended for award:

CONSTRUCTION SERVICES CONTRACT FUNDING SUMMARY
Original Contract Amount (Earth Systems Pacific, Inc.) $83,966 First Amendment Proposed Increase $55,221
Total Contract Amount $139,187
Agenda Item No. 9
File Code No. 700.08
Council Agenda Report
Contract Amendment for Geotechnical Support Services for the Santa Barbara Police Station Project [Agreement]
March 18, 2025

Page 2 ends

If the recommendation is approved, the total geotechnical support services contract expenditure authority will be increased to $139,187. There are sufficient bond proceeds to cover the cost of the recommended contract amendment.

A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].

SUSTAINABILITY IMPACT:

City of Santa Barbara (City) Resolution 07-018 requires that new City building construction be designed and constructed to achieve a Leadership in Energy and Environmental Design (LEED) Silver classification or, where LEED is not applicable for the Project, another green building program certification level that is contingent on the building type. Resolution 07-018 also requires new building construction and major renovations for City owned and operated buildings be designed to exceed State Title 24 Energy Requirements by 20 percent. In addition, the City’s General Plan calls for the inclusion of solar energy to help meet the energy demand for the structure. Lastly, Council Resolution 17-043 commits the City to 100 percent renewable electricity by 2030; therefore, having the police station as a zero net energy building design is in line with these goals.

ENVIRONMENTAL REVIEW:

This Project was subject to environmental review under the California Environmental Quality Act (CEQA). A MND was prepared for this Project and was completed and approved on July 13, 2022. The State Clearinghouse number is 2022050302. A copy of the MND may be requested from the Public Works Department for public review by contacting [email protected].

PREPARED BY: Ashleigh A. Sizoo, P.E., Acting City Engineer/BH/sk SUBMITTED BY: Brian D’Amour, P.E., Acting Public Works Director APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Contract For As-Needed Job Order Contracting Services [Agreement] RECOMMENDATION:

That Council authorize the Public Works Director to execute a City Professional Services contract with The Gordian Group, Inc. in the amount not to exceed $5,000,000 over five years for as-needed Job Order Contracting services for various maintenance and repair projects.

DISCUSSION:

On March 9, 2020, Council approved an as-needed contract with The Gordian Group, Inc. (Gordian) to provide services for the Job Order Contracting (JOC) program. For the past year, Gordian and City staff successfully piloted the JOC program to deliver numerous maintenance and repair projects. The new agreement is consistent with the previous duration of five years but increases the total expenditure authority to $5,000,000 to expand the capabilities of the JOC program throughout other City of Santa Barbara (City) Departments and Divisions including Airport, Waterfront, Streets, Water, and Wastewater. Recently completed or currently active JOC projects include: the Teen Center Reroof; Eastside Library Storm Repair; Muni Tennis Office Storm Repair; Los Banos Exterior Paint Maintenance; Westside Center Event Space Repair and Renovation; Central Library Skylight Repair; Faulkner Gallery Repair and Renovation; Gibraltar Road Repair; Skofield Road Repair; Mountain Drive Road Repair, Airport Terminal Sidewalk Repair; Las Alturas Road Repair; and Airport Taxiway Asphalt Repair.

The JOC program is a construction procurement process allowing the completion of a large number of individual projects with a single, competitively awarded contract. These contracts are awarded in compliance with the City’s competitive bidding requirements, and unit prices are established up-front using localized labor, materials, and equipment costs. Awarded contractors apply a predetermined adjustment factor to the unit prices, so costs are controlled and projects can begin faster. Common benefits include:
 Significant time and costs savings via the single bid process;  Readily available awarded contractors are able to begin work faster;  Enhanced transparency and control through preset pricing; Agenda Item No. 10
File Code No. 530.01
Council Agenda Report
Contract For As-Needed Job Order Contracting Services [Agreement] March 18, 2025

Page 2 ends

 Improved construction quality with greater contractor collaboration; and  Fewer project delays because of reduced claims and changes.

JOC is a common contracting tool used by many federal, state, and local jurisdictions.

Gordian creates a construction task catalog of standard services encompassing any and all maintenance, repair, and construction related tasks. Various contractors then bid on the construction task catalog, and a contract is awarded to the lowest bidder in each trade category. The City can then utilize the construction task catalog and contract directly with the low-bidding contractor to execute projects based on set pricing for specific services.

The JOC does not obligate the City to any particular work; rather the City can use the JOC contract as needed during the contract period and pay for services rendered. This provides an effective method for promptly responding to typical maintenance and repair projects.

A detailed description of the scope of services and associated fees is available in Exhibit A of the contract. In general, services provided by Gordian include:
 Creation and implementation of the JOC program and associated construction task catalog specific to the needs of the City.
 Access to Gordian’s JOC Management Applications, which allows an unlimited number of City licenses and provides access to nationwide cost estimating data, construction task catalog, project accounting services, management reports, and incorporation of standard City forms and processes.
 Training for any/all City staff and contractors.
 Project development, which includes project identification, contractor identification, scoping meetings, detailed scopes of work, detailed price proposals, and contract support.

BUDGET/FINANCIAL INFORMATION:

There is no upfront cost or encumbrance with this contract. These services are used as needed with no minimum obligation on the part of the City. When the JOC method of contracting is utilized, Gordian will receive five percent of the awarded construction cost on a per-project basis. This five percent fee will be funded as a part of the individual project budget. For comparison, the preparation of the bid documents necessary for these types of projects typically runs 10 – 20 percent of project costs.

This action has no financial/budget impact on the City. Individual projects utilizing the JOC method of contracting will be funded by the asset owner’s respective capital or operating fund budget.

A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].

Council Agenda Report
Contract For As-Needed Job Order Contracting Services [Agreement] March 18, 2025

Page 3 ends

ENVIRONMENTAL REVIEW:

The Professional Services agreement with Gordian is for as-needed JOC services for various maintenance and repair projects, which falls outside of the definition of a “Project” under California Environmental Quality Act (CEQA) Guidelines § 15378 (b)(5) as administrative activities of governments that will not result in direct physical changes in the environment are not subject to CEQA environmental review. The Professional Services agreement will not result in direct physical impacts on the environment. All future maintenance and repair projects as a result of these as-needed JOC services will be subject to CEQA environmental review.

PREPARED BY: Ashleigh A. Sizoo, P.E., Acting City Engineer/JW/sk SUBMITTED BY: Brian D’Amour, P.E., Acting Public Works Director APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Public Works Department
SUBJECT: Contract for Design Services for the City Hall Americans with Disabilities Act Upgrades Project [Agreement]
RECOMMENDATION:

That Council authorize the Public Works Director to execute a City Professional Services contract with Sherry & Associates in the amount of $165,490 for the City Hall Americans with Disabilities Act Upgrades Project and authorize $33,098 for potential extra services, for a total expenditure authority of $198,588.

DISCUSSION:

Background
Sherry & Associates has been working on the design of two previously separate projects to implement Americans with Disabilities Act (ADA) upgrades at City Hall. One project includes a new accessible elevator, and the other project includes upper floor restroom accessibility upgrades. The work is now managed as one project, called the City Hall ADA Upgrades Project (Project). Design work on the Project was put on hold approximately three years ago.

Project Description
The current scope of work is for Sherry & Associates to finalize the original unfinished drawings for a new accessible elevator and new accessible restrooms along with newly added scope. The new scope addressed various accessibility items identified in the City’s ADA Transition Plan.

Design Phase Consultant Engineering Services
Staff recommends that Council authorize the Public Works Director to execute a contract with Sherry & Associates in the amount of $165,490 for the Project and authorize $33,098 for potential extra services, for a total expenditure authority of $198,588. Sherry & Associates was recommended by City staff and approved by Council in September of 2019 after a thorough Request For Proposals (RFP) process.

Agenda Item No. 11
File Code No. 320.01
Council Agenda Report
Contract for Design Services for the City Hall Americans with Disabilities Act Upgrades Project [Agreement]
March 18, 2025

Page 2 ends

Community Outreach
Public Works staff will work closely with the City Administrator’s Office to coordinate and communicate to City residents and City Hall employees about the scope, schedule, and impacts on daily operations at City Hall during construction.

BUDGET/FINANCIAL INFORMATION:

This Project is funded by Measure C. There are sufficient expenditure appropriations in the Measure C Capital Fund to cover the design phase cost of this Project. The current estimated construction cost of the Project is approximately $4.5 million. Funds for this work will be requested once the Project progresses closer to the construction phase.

The following summarizes all Project design costs:

BUDGET/FINANCIAL INFORMATION:

TOTAL
Design, permitting, and construction administration services (Sherry & Associates)
$165,490
Extra Services allowance $33,098
City Staff – Design Management $21,780
TOTAL COST $220,368
A copy of the contract may be requested from the Public Works Department for public review by contacting [email protected].

SUSTAINABILITY IMPACT:

As part of the design, efficiencies related to the consumption of electricity provided by Southern California Edison will be examined.

ENVIRONMENTAL REVIEW:

The Project consists of interior construction to upgrade the existing City Hall elevator and restrooms for ADA compliance. As such, the Project is not subject to California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.

Further, the City’s standard construction specifications include requirements for safe interior construction, including compliance with CalOSHA safety and interior air quality requirements. Therefore, the Project is subject to the “common sense” exclusion under CEQA Guidelines 15061(b)(3).

Therefore, the City Council is requested to confirm that the Project is not subject to CEQA.

Council Agenda Report
Contract for Design Services for the City Hall Americans with Disabilities Act Upgrades Project [Agreement]
March 18, 2025

Page 3 ends

PREPARED BY: Ashleigh A. Sizoo, P.E., Acting City Engineer/MA/sk SUBMITTED BY: Brian D’Amour, P.E., Acting Public Works Director APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Parks and Recreation Department
SUBJECT: Personal Services Agreements for Classes, Clinics, Camps, and Tournaments [Agreement]
RECOMMENDATION: That Council:

A. Authorize the Parks and Recreation Director to execute a personal services agreement with 805 Beach Inc., a Limited Liability Company, for the provision of Fiscal Year 2026 Beach Volleyball Camps, Clinics, Classes, Leagues, and Tournaments, with compensation equal to 65% of the total basic fees collected and the total compensation estimated at $230,000 based on the projected number of participants;
B. Authorize the Parks and Recreation Director to execute a personal services agreement with Lobster Jo’s Camps, a California Corporation, for the provision of Fiscal Year 2026 Youth Camps, with compensation equal to 85% of the total basic fees collected and the total compensation estimated at $455,000 based on the projected number of participants;
C. Authorize the Parks and Recreation Director to execute a personal services agreement with Channel Islands Outfitters Inc., a California Corporation, for the provision of Fiscal Year 2026 Youth Camps, with compensation equal to 85% of the total basic fees collected and the total compensation estimated at $130,000 based on the projected number of participants; and
D. Authorize the Parks and Recreation Director to execute a personal services agreement with Rink Management Services Corporation/Ice In Paradise, a California Corporation, for the provision of Fiscal Year 2026 Youth Camps, with compensation equal to 90% of the total basic fees collected and the total compensation estimated at $140,000 based on the projected number of participants.

Agenda Item No. 12
File Code No. 570.05
Council Agenda Report
Personal Services Agreements for Classes, Clinics, Camps, and Tournaments [Agreements]
March 18, 2025

Page 2 ends

DISCUSSION:

The Recreation Division of the Parks and Recreation Department (Department) offers various classes, clinics, camps, leagues, and tournaments for youth and adults that are organized and delivered by a third-party contractor. Parents and participants continue to overwhelmingly support the programs provided by these four contractors. 805 Beach Inc. will provide thirteen (13) one-week youth beach volleyball camps in winter, spring, and summer, four (4) two-week after school youth clinics, and four (4) four-week adult evening classes serving approximately 1,200 youth and 150 adults. Lobster Jo’s Camps will provide twenty-seven (36) one-week beach, art and, skate camps serving approximately 1,500 youth. Channel Islands Outfitters will provide eighteen (18) oneweek kayaking and watersport camps serving approximately 250 youth. Rink Management Services Corporation will provide thirteen (13) one-week ice skating camps in winter, spring, and summer and twelve (12) four-week ice skating clinics on Saturday’s serving approximately 450 youth.

BUDGET/FINANCIAL INFORMATION:

Per the agreements, the contractors are paid a percentage of each registration fee collected, calculated using the basic resident rate. Contract amounts are based on the projected number of participants.

The Parks and Recreation Department proposed Fiscal Year 2026 General Fund operating budget includes sufficient expenditure appropriations to cover the costs of these services.

Copies of the agreements may be requested from the Parks and Recreation Department for public review by contacting Courtney Carlson at [email protected].

PREPARED BY: Adam Porte, Recreation Programs Manager
SUBMITTED BY: Jill E. Zachary, Parks and Recreation Director APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Finance Department
SUBJECT: Professional Services Agreement for Document Printing and Mailing Services with Infosend, Inc. [Agreement]
RECOMMENDATION:

That Council approve and authorize the Finance Director to execute a professional services agreement with Infosend, Inc., for a term of three years with an optional two-year extension in additional one (1) year increments.

DISCUSSION:

The City has contracted with Infosend, Inc. (Infosend), to process, print, and mail utility invoices and other miscellaneous billings and notices to City residents and businesses.

This contract was entered into on March 1, 2025, and consists of a three-year term with two optional one-year extensions to expire on June 30, 2028.

As the City’s existing bill print vendor, Infosend has been performing the full spectrum of data processing, print, and mail services required for City operations since 2013. Finance staff are highly satisfied with Infosend's performance, including their quality of work, service, customer support, and responsiveness. Therefore, staff recommends the City enter into a new contract with Infosend for five years, consisting of a three-year initial term followed by two optional one-year extensions, subject to the same terms and agreements.

In addition, changing bill print vendors would create a substantial amount of work on City staff, particularly Finance and Information Technology, as extensive programming and testing is required.

BUDGET/FINANCIAL INFORMATION:

The fees associated with the proposed agreement with Infosend are detailed in a Scope of Work listing individual pricing for all processes and materials. The agreement includes the fees are subject to an annual review and adjustment based on the change in Consumer Price Index plus 1.5% (CPI) to account for increases in the cost of materials, labor, and other overhead costs.

Agenda Item No. 13
File Code No. 210.01
Council Agenda Report
Professional Servcies Agreement for Document Printing and Mailing Services with Infosend, Inc. [Agreement]
March 18, 2025

Page 2 ends

The contract amount will not exceed $750,000 over the three-year term, or $250,000 per year. Infosend's bill printing services will cost the City approximately $200,000 in Fiscal Year (FY) 2025, $210,000 in FY2026, and $220,000 in FY2027. The small year-over-year increases are due to CPI increases. There are additional costs included in the contract to cover any special mailings needed throughout the years. There is adequate expenditure appropriation in the Finance Department operating department in FY2025 to fund this agreement, and staff will request ongoing appropriations in FY2026 and going forward.

Budget appropriations may be requested for any special mailings or additional services, when incurred.

ENVIRONMENTAL CONSIDERATIONS:

City staff has prioritized sustainable utility bill printing strategies by offering electronic billing options via email and Watersmart.com, and by encouraging electronic payments.

These initiatives have reduced printing costs. Furthermore, InfoSend provides sustainably produced paper and envelope stock. This aligns with the City's successful efforts to promote paperless billing and electronic payments, which have significantly lowered contract expenses and advanced environmental stewardship. Continued support for these initiatives reinforces our commitment to fiscal responsibility and sustainable practices, leveraging InfoSend's expertise to further minimize our environmental footprint.

A copy of the contract/agreement may be requested from Finance Department for public review by emailing [email protected].

PREPARED BY: Lyndsay Maas, Assistant Finance Director
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: Kelly McAdoo, City Administrator

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Waterfront Department
SUBJECT: Acceptance of Deepwater Diver’s Monument Statue from Santa Barbara Deepwater Diving Monument Committee [Agreement] RECOMMENDATION:

That Council accept the donation of the Deepwater Diver’s Monument Statue from the Santa Barbara Deepwater Diving Monument Committee pursuant to the authority allowed under Municipal Code § 37354.

DISCUSSION:

Santa Barbara is known as the birthplace of deepwater diving, with a rich history centered in the development and implementation of specialized diving equipment and methods. To honor these roots, the Santa Barbara Deepwater Diving Monument Committee was formed to design, fund, and construct a bronze diver’s monument statue. The Committee is donating the statue to the Waterfront Department where it will be displayed proudly as a testament to the Santa Barbara Harbor’s historical significance in the diving community.

The statue will be installed in the Santa Barbara Harbor near the Breakwater Restaurant.

The official unveiling of the statue is scheduled for April 5, 2025.

BUDGET/FINANCIAL INFORMATION:

The statue will be received as a gift from the Santa Barbara Deepwater Diving Monument Committee. Therefore, no additional funding is required.

PREPARED BY: Niko Lopez, Administrative Assistant
SUBMITTED BY: Mike Wiltshire, Waterfront Director
APPROVED BY: Kelly McAdoo, City Administrator
Agenda Item No. 14
File Code No. 570.03

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
AGENDA DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: Finance Department
SUBJECT: Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024
RECOMMENDATION:

That Council accept the Annual Comprehensive Financial Report (ACFR) for the fiscal year (FY) ended June 30, 2024.

DISCUSSION:

Pursuant to the City Charter, Finance Department staff have prepared the City’s annual financial statements for the fiscal year ended June 30, 2024. 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, 2024, continues to meet the Certificate of Achievement Program’s requirements and are submitting it to GFOA to determine its eligibility for another certificate. The City remains committed to financial transparency and Agenda Item No. 15
File Code No. 210.01
Finance Committee Agenda Report
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 March 18, 2025

Page 2 ends

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, 2024, 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, 2024.

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.

Finance Committee Agenda Report
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 March 18, 2025

Page 3 ends

STATEMENT OF NET POSITION
in (000's)

GOVERNMENTAL

ACTIVITIES

BUSINESS-TYPE

ACTIVITIES TOTAL
Assets
Current and other Assets $302,701 $285,215 $587,916
Capital Assets, Net $557,222 $590,982 $1,148,204
Total Assets $859,923 $876,197 $1,736,120
Deferred Outflows of Resources: $121,453 $21,637 $143,090 Liabilities
Current and other Liabilities $60,549 $44,729 $105,279
Noncurrent Liabilities $414,656 $207,812 $622,467
Total Liabilities $475,205 $252,541 $727,746
Deferred Inflows of Resources: $31,227 $30,043 $61,271
Net Position
Net investment in Capital Assets $543,585 $436,169 $979,754 Restricted $120,534 $9,308 $129,842
Unrestricted ($189,175) $169,772 ($19,403)
Total Net Position $474,944 $615,249 $1,090,193
“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 positions for funds grouped under governmental and business-type activities remain strong at $474.9 Million and $615.2 Million, respectively. The net position for governmental activities increased by $20.5 Million in FY2024 compared to FY2023, while the net position in business-type activities reflects an additional $48.1 Million in FY2024 compared to FY2023.

The table below summarizes the expenses and revenues for the major functions and programs in the Governmental Activities for FY2024.

STATEMENT OF GOVERNMENTAL ACTIVITIES
in (000’s)

GOVERNMENTAL ACTIVITIES REVENUES EXPENSES NET RESULT
Administration $11,106 $23,803 $(12,697)
Public Safety $8,831 $100,520 $(91,689)
Public Works $33,892 $58,408 $(24,516)
Community Services $12,294 $34,779 $(22,485)
Community Development $15,389 $22,673 $(7,284)
Sustainability & Resilience $0 $972 $(972)
Total Governmental Activities $81,512 $241,154 $(159,642) Finance Committee Agenda Report
Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 March 18, 2025

Page 4 ends

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.

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

STATEMENT OF BUSINESS-TYPE ACTIVITIES
in (000’s)

BUSINESS-TYPE ACTIVITIES REVENUES EXPENSES NET RESULT
Water $71,654 $58,759 $12,895
Wastewater $29,243 $27,454 $1,789
Airport $38,007 $35,795 $2,211
Waterfront $19,594 $18,287 $1,307
Solid Waste $38,382 $37,866 $516
Downtown Parking $9,488 $12,350 $(2,862)
Golf Course $4,577 $3,561 $1,015
Clean Energy $54,136 $33,475 $20,661
Total Business-Type Activities $265,081 $227,548 $37,533 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, 2024, 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, 2024
PREPARED BY: Nathalie Lecolley, Controller
SUBMITTED BY: Keith DeMartini, Finance Director
APPROVED BY: Kelly McAdoo, City Administrator

CALIFORNIA
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024

ATTACHMENT
This page was intentionally left blank.

CITY OF SANTA BARBARA, CALIFORNIA

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

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 36
STATEMENT OF ACTIVITIES 38

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 40

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE NET POSITION OF GOVERNMENTAL ACTIVITIES 41

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 42

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 43

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 44

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION 46

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2024
STATEMENT OF CASH FLOWS 48

FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 52
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 53
NOTES TO BASIC FINANCIAL STATEMENTS 55

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS – SAFETY RETIREMENT AND SAFETY SERVICE
RETIREMENT PLANS 120
SCHEDULE OF CONTRIBUTIONS – SAFETY RETIREMENT AND SAFETY SERVICE RETIREMENT PLAN 122
SCHEDULE OF INVESTMENT RETURNS – SAFETY RETIREMENT AND
SAFETY SERVICE RETIREMENT PLANS 124

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS – CALPERS MISCELLANEOUS PENSION PLANS 125 SCHEDULE OF CONTRIBUTIONS – CALPERS MISCELLANEOUS
PENSION PLANS 127

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
RELATED RATIOS – CALPERS SAFETY POLICE PENSION PLANS 129 SCHEDULE OF CONTRIBUTIONS – CALPERS SAFETY POLICE PENSION PLANS 131
SCHEDULE OF CITY’S PROPORTIONATE SHARE OF THE PLAN’S NET PENSION LIABILITY AND RELATED RATIOS – CALPERS SAFETY FIRE – COST SHARING PENSION PLAN 133
SCHEDULE OF CONTRIBUTIONS – CALPERS SAFETY FIRE – COST
SHARING PENSION PLAN 135

SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS 137

BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 138
AFFORDABLE HOUSING SPECIAL REVENUE FUND 139

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2024
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – MODIFIED
APPROACH 140

NONMAJOR GOVERNMENTAL FUNDS
DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS 149

OTHER SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET 151

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 155

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL
TRAFFIC SAFETY SPECIAL REVENUE FUND 159
CREEK RESTORATION/WATER QUALITY SPECIAL REVENUE FUND 160 WILDLAND FIRE SUPPRESSION SPECIAL REVENUE FUND 161

PERMANENT LOCAL HOUSING ALLOCATION SPECIAL REVENUE
FUND 162
TRANSPORTATION DEVELOPMENT SPECIAL REVENUE FUND 163

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE
FUND 164
POLICE – ASSET FORFEITURE SPECIAL REVENUE FUND 165
COUNTY LIBRARY SPECIAL REVENUE FUND 166
MEASURE A SPECIAL REVENUE FUND 167
MISCELLANEOUS GRANTS SPECIAL REVENUE FUND 168
STREET SWEEPING SPECIAL REVENUE FUND 169
HOME PROGRAM SPECIAL REVENUE FUND 170
POLICE – SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE
FUND 171
STREETS SPECIAL REVENUE FUND 172
POLICE CAD-RMS SUPPORT SPECIAL REVENUE FUND 173

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2024

NONMAJOR PROPRIETARY FUNDS
DESCRIPTION OF NONMAJOR PROPRIETARY FUNDS 176

NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENT OF NET POSITION 177

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION 178
COMBINING STATEMENT OF CASH FLOWS 179

INTERNAL SERVICE FUNDS
DESCRIPTION OF INTERNAL SERVICE FUNDS 184

INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION 185

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION 186
COMBINING STATEMENT OF CASH FLOWS 187

FIDUCIARY FUNDS
DESCRIPTION OF FIDUCIARY FUNDS 192

FIDUCIARY FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION 193
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 194

STATISTICAL SECTION (UNAUDITED)
STATISTICAL TABLE OF CONTENTS 198
NET POSITION BY COMPONENT – LAST TEN FISCAL YEARS 200
CHANGES IN NET POSITION BY COMPONENT – LAST TEN FISCAL
YEARS 201
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE – LAST TEN FISCAL YEARS 203
FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN FISCAL
YEARS 204

CITY OF SANTA BARBARA

TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 2024
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS – LAST
TEN YEARS 205

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY – LAST TEN FISCAL YEARS 207
DIRECT AND OVERLAPPING PROPERTY TAX RATES – LAST TEN
FISCAL YEARS 208
PRINCIPAL PROPERTY TAXPAYERS – CURRENT YEAR AND TEN
YEARS AGO 209
PROPERTY TAX LEVIES AND COLLECTIONS – :LAST TEN FISCAL
YEARS 210
RATIOS OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS 211 RATIOS OF GENERAL BONDED DEBT OUTSTANDING – LAST TEN
FISCAL YEARS 212
LEGAL DEBT MARGIN INFORMATION 213
PLEDGED-REVENUE COVERAGE – LAST TEN FISCAL YEARS 214
DEMOGRAPHIC ECONOMIC STATISTICS – LAST TEN FISCAL YEARS 216 PRINCIPAL EMPLOYERS – CURRENT YEAR AND NINE YEARS AGO 217 CITY GOVERNMENT EMPLOYEES BY FUNCTION – LAST TEN FISCAL YEARS 218
OPERATING INDICATORS BY FUNCTION – LAST TEN FISCAL YEARS 219 CAPITAL ASSET STATISTICS BY FUNCTION – LAST TEN FISCAL YEARS 220 This page was intentionally left blank.

INTRODUCTORY SECTION
This page was intentionally left blank.
(1)
March 7, 2025
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, 2024, 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, 2024. 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 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 17.

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 2024, serves a local population of 86,499. The City is a major employment center and tourist destination. (2)
The City provides a wide range of services to its residents. These services include:
police and fire protection; construction and maintenance of highways, streets, traffic signals and infrastructure; planning, building and safety and code enforcement services; 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 1800s, 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) 2024, the City experienced a plateau in economic activities due to various factors such as supply chain disruptions, inflationary pressures, and labor shortages. Despite these challenges, by continuing to control costs and implementing strong financial controls, the General Fund reserves for FY2024 remained strong although slightly below 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, COVID and recent storms. 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 years 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 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 longer- (3)
term 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 capital needs.

A long-term financial model is also maintained for the General Fund. The model looks forward five years, rather than ten, because 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 FY2026 and FY2027 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 documents.

Annual pension expenses are projected to continue to rise and represent a significant amount of the City’s operating budget. The pension liability funded status is 66.7%.

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 a resolution to appropriate the transfer of available reserves from enterprise and internal service funds into the Pension Section 115 Trust.

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. (4)

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, 2024, the City had not reached its Article XIIIB spending limitation. (5)

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, 2023. This was the thirty-sixth 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, 2024, 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,
_________________________ _____________________________ Kelly McAdoo Keith DeMartini
City Administrator/ Finance Director
Clerk/Treasurer
(7)

CITY OF SANTA BARBARA
Directory of City Officials
City Council
Kristen Sneddon
Councilmember
Mike Jordan
Councilmember
Eric Friedman
Councilmember
Oscar Gutierrez
Councilmember
Alejandra Gutierrez
Mayor Pro Tempore
Randy Rowse
Mayor
Meagan Harmon
Councilmember
Management Team as of June 30, 2024
Kelly McAdoo, 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
Justin Cure, Information Technology Director
Brandon Beaudette, Acting 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

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
As of June 30, 2024
• The Electorate is at the top of the chart.
• The Mayor & Council is elected by the Electorate.
• The Mayor & Council appoints the City Administrator/City Clerk/Treasurer, the City Attorney, and all Boards, Commissions, and Committees. • The City Administrator oversees the Directors of the Community Development, Finance, Fire, Human Resources, Library, Parks and Recreation, Police, and Public Works Departments.
• The Assistant City Administrator reports to the City Administrator and oversees the Directors of the Airport, Information Technology, Sustainability and Resilience, and Waterfront Departments.

ELECTORATE

MAYOR AND COUNCIL

CITY ADMINISTRATOR /

CITY CLERK / TREASURER

BOARDS,

COMMISSIONS, &

COMMITTEES

CITY ATTORNEY
Airport
Department
Director
Fire
Department
Chief
Human
Resources
Department
Director
Information
Technology
Department
Director
Library
Department
Director
Public
Works
Department
Director
Waterfront
Department
Director
Sustainability &
Resilience
Department
Director
Community
Development
Department
Director
Police
Department
Chief
Finance
Department
Director
Parks &
Recreation
Department
Director

ASSISTANT CITY

ADMINISTRATOR
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, 2023
Executive Director/CEO
(10)
(11)

FINANCIAL SECTION
(12)
This page was intentionally left blank.

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

CliftonLarsonAllen LLP
CLAconnect.com
(13)
INDEPENDENT AUDITORS’ REPORT
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, 2024, 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, 2024, 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.

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.

Honorable City Council
of the City of Santa Barbara
(14)
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.

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.

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 7, 2025, 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 7, 2025
(17)
MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited)
Fiscal Year Ended June 30, 2024
This section of the City’s Annual Comprehensive Financial Report (ACFR) presents a narrative overview and analysis of the City’s financial performance for the fiscal year (FY) ending June 30, 2024. 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 1-5 of this report.

RECENT ECONOMIC AND FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded the liabilities and deferred inflows of resources at the close of FY2024 by $1.1 Billion (net position), an increase by 7.0% with FY2023. 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 $15.7 Million, a reduction in loss by 65.0% with FY2023 mainly due to staff vacancies, a better-than-expected rate of return on investments and revenues that stayed steady overall in comparison to the previous year.

Local economic indicators for FY2024 remained stable, at levels similar to FY2023. The Unemployment rate was at 4.2%, a decrease by almost 1.0% with prior year. Tourism experienced growth, particularly in Air Travel with an increase of 11.1% when hotel occupancy increased by

6.0% from FY2023. The overall financial position of the City improved in FY2024 as evidenced by an increase in total net position. At the end of FY2024, Governmental activities had a surplus of $475.0 Million, a 5.0% increase with FY2023. General Fund tax revenue growth was driven by an increase in property tax revenue of $2.7 Million over the prior year and another additional revenue of $3.2 Million in taxes. Other revenues generated an additional $6.5 Million. Net position Business-Type Activities added $48.0 Million to reserves or $615.2 Million for this current fiscal year, an increase of 8.0% from last 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 showing how the City’s net position changed during the most recent 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. (18)
Thus, revenue and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

Financial Fund Statements
The City, like other states 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 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 purposes 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 as that used to prepare 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, custodial, communications, information systems, self-insurance programs, and energy management.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the County's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

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. (19)
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.

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 Government-Wide statements includes a comparison between current and prior year results of operations and year-end balances.

Statement of Net Position
Table 1 below summarizes the Statement of Net Position for Governmental and Business-Type Activities as of June 30, 2024, with comparative totals as of June 30, 2023. As previously stated, net position at yearend serves as a useful indicator over time of whether the City’s financial position is improving or deteriorating.

Table 1

STATEMENT OF NET POSITION
As of June 30, 2024 & 2023
in (000's)
Governmental
Activities
Business-Type
Activities TOTAL
FY2024 FY2023 FY2024 FY2023 FY2024 FY2023
Assets
Current & other Assets $302,701 $283,652 $285,215 $255,857 $587,916 $539,509 Capital Assets, Net $557,222 $535,743 $590,982 $580,887 $1,148,204 $1,116,630 TOTAL ASSETS $859,923 $819,395 $876,197 $836,744 $1,736,120 $1,656,139 Deferred Outflows
of Resources: $121,453 $121,112 $21,637 $23,450 $143,090 $144,562 Liabilities
Current & other Liabilities $60,549 $54,969 $44,729 $41,732 $105,279 $96,701 Noncurrent liabilities $414,656 $402,905 $207,812 $219,813 $622,467 $622,718 TOTAL LIABILITIES $475,205 $457,874 $252,541 $261,545 $727,746 $719,419 Deferred Inflows
of Resources: $31,227 $28,236 $30,043 $31,495 $61,271 $59,731 Net Position
Net investment in
capital assets $541,873 $533,563 $434,138 $416,480 $976,012 $950,042 Restricted $120,534 $110,749 $9,308 $8,433 $129,842 $119,182 Unrestricted ($187,463) ($189,913) $171,803 $142,240 ($15,661) ($47,673) TOTAL NET POSITION $474,944 $454,398 $615,249 $567,153 $1,090,193 $1,021,551 (20)
As shown in Table 1, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.1 Billion as of June 30, 2024, an increase of $68.6 Million over FY2023. The largest portion consists of the City’s net investment in capital assets in the amount of $1.1 Billion. 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.

Another portion of the City’s net position is restricted resources that are subject to external restrictions on how they may be used. For current year, these resources are at $130.0 Million,

9.0% increase with last year. The remaining portion of total net position shows a deficit of $15.7 Million, a significant improvement with last year or a change of 65.0%. Higher staff vacancies and planned projects and initiatives experiencing delays are the main indicators for this shift.

Governmental Activities follow a similar trend to last year.

A change in Current and other assets for 7.0% is driven by Interest receivable / favorable investment market, a payoff to the City for Presidio Housing loan or $10.9 Million, and a new Section 115 Pension Trust. As of the end of FY2024, the balance in the Section 115 trust is $2.3 Million. The City plans to continue to allocate funds into the trust, as dictated in the City’s reserve policy, that will be used to reduce the City’s unfunded actuarial liability (UAL) with CalPERS.

Restricted net position increased by $9.8 Million. Affordable housing and Public Works hold most of this restricted fund with an increase in Measure A and Street Funding for the Public Works Department. Business-Type Activities positioned themselves at $615.2 Million for the end of the fiscal year. Current and other assets reflect an 11.0% change from last year when $27.5 Million was added for unrestricted funds.

Statement of Activities
For the fiscal year ended June 30, 2024, total net position increased by $68.6 Million, or 6.3% with last year for a total of $1.1 Billion. Adjustments to the prior fiscal year come to a neutral result.

Measure C Fund needed to be reported as a major governmental fund and there is no impact to current fiscal year after this final adjustment was processed.

Table 2 summarizes the Statement of Activities for Governmental Activities and Business-Type Activities for the fiscal year ended June 30, 2024, with comparative totals for the fiscal year ended June 30, 2023.
(21)
Table 2

STATEMENT OF ACTIVITIES
As of June 30, 2024 & 2023
in (000's)
Governmental
Activities
Business-Type
Activities TOTAL
FY2024 FY2023 FY2024 FY2023 FY2024 FY2023

REVENUES
Program Revenues
Charges for Services $34,126 $31,876 $256,392 $234,157 $290,517 $266,032 Operating Grants & Contributions $24,413 $19,778 $8,674 $2,116 $33,087 $21,894 Capital Grants & Contributions $22,974 $18,803 $15 $126 $22,989 $18,928 General Revenues:

Taxes $164,256 $158,577 $0 $0 $164,256 $158,577
Franchise Fees $6,079 $4,254 $0 $0 $6,079 $4,254
Motor Vehicle License Fees $108 $90 $0 $0 $108 $90
Investment Income $8,377 $2,406 $10,819 $2,797 $19,197 $5,204 Other Revenue $922 $240 $189 $189 $1,111 $428
TOTAL REVENUES $261,255 $236,022 $276,089 $239,385 $537,344 $475,407

EXPENSES
Program Expenses:

Administration $23,803 $20,966 $0 $0 $23,803 $20,966
Public Safety $100,520 $65,582 $0 $0 $100,520 $65,582
Public Works $58,408 $51,964 $0 $0 $58,408 $51,964
Community Services $34,779 $31,117 $0 $0 $34,779 $31,117 Community Development $22,673 $19,420 $0 $0 $22,673 $19,420 Sustainability & Resilience $972 $42 $0 $0 $972 $42
Business Activities:

Water $0 $0 $58,759 $56,917 $58,759 $56,917
Wastewater $0 $0 $27,454 $25,530 $27,454 $25,530
Airport $0 $0 $35,795 $33,462 $35,795 $33,462
Waterfront $0 $0 $18,287 $17,258 $18,287 $17,258
Solid Waste $0 $0 $37,866 $34,838 $37,866 $34,838
Downtown Parking $0 $0 $12,350 $11,237 $12,350 $11,237
Golf Course $0 $0 $3,561 $3,359 $3,561 $3,359
Clean Energy $0 $0 $33,475 $37,598 $33,475 $37,598
TOTAL EXPENSES $241,154 $189,091 $227,548 $220,197 $468,702 $409,288 Increase in Net Positions
Before Transfers $20,101 $46,932 $48,541 $19,187 $68,642 $66,119 Transfers In (Out) $445 ($1,176) ($445) $1,176 $0 $0
Increase (Decrease) in Net Position $20,546 $45,756 $48,096 $20,363 $68,642 $66,119 Net Position, Beginning of Fiscal Year $454,398 $408,642 $567,153 $546,790 $1,021,551 $955,432 Restatement Prior Year (Note 19) $0 $1,265 $0 ($357) $0 $908

NET POSITION, END OF
FISCAL YEAR $474,944 $455,663 $615,249 $566,796 $1,090,193 $1,022,459 (22)
Governmental Activities
Governmental activities increased the City’s net position by approximately $20.5 Million during FY2024 or for a total of $474.9 Million, a slight increase of 4.0% last year.

Revenue Highlights
Total revenue is $261.3 Million. Variances from FY2023 exceeding 11.0% or $25.2 Million. Under Program revenues, an additional $4.6 Million and $4.1 Million were received and recognized (American Rescue Plan Act – ARPA) from grants for operating and capital transactions. Within General Revenues, Tax revenues show an increase of 4.0%. • Sales and Use taxes of $60.6 Million represent a slight increase of 1.3% last year.

Revenues were nearly flat quarter over quarter during FY2024 with no major increases in any business sector. This revenue will increase in FY2026 due to the sales tax rate increase of 0.50 % (Measure I) that the voters approved on November 5, 2024, to fund ongoing essential services.
• Property taxes reported an increase of $2.7 Million from the prior year, or a 6.0% increase to $48.6 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 in, and property prices and the number of sales have remained strong even during recent economic uncertainty.
• Transient Occupancy taxes (TOT). For FY2024, revenue was $32.3 Million, a slight increase of 2.6% from the prior year. Despite an increase in tourism, we are continuing to experience a slow positive change since the aftereffects of the pandemic.

Franchise fees are $6.0 Million, a 43.0% change from FY2023, driven by a Refuse franchise fee replacing the refuse Utility Users Tax (UUT) to recoup the cost of service from the franchise hauler.

Investment income with a 248.0% change with prior year relates to the favorable market. (23)
Expense Highlights
Functional expenses for the year totaled approximately $241.1 Million ($189.0 Million in FY2023), an increase of $52.1 Million from the prior year. The variance is composed of the following changes:
• Public Safety expenditures increased by $34.9 Million in relation to FY2023. This change relates directly to labor cost variance with FY2023. Past year vacancies were gradually filled during this current year in combination with changes in salaries and wages. • Public Works expenditure increased by $6.4 Million. Most of this variance is attributed to capital outlay and changes in salaries as well as benefits in combination with turnover. 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 Community Development increased by $3.6 Million and $3.2 Million respectively with the prior fiscal year. The combination of the increase in payroll and capital outlay expenses is the result of these 12.0% and 17.0% changes with last year. • The Administration and Sustainability & Resilience departments make up for the offset of the variances listed above by roughly $3.7 Million with an increase in labor expenses across Finance, Human Resources, Attorney and Administration staff.

Property Taxes
27%
Transient Occupancy
Tax
18% Sales and Use Tax
34%
Business License
2%
Utility Users Tax
9%
Cannabis Tax
1%
Real Property Transfer Franchise fees
3%
Investment
income
Governmental Activities: Revenues
(24)
Business-Type Activities
The City’s Business-Type Activities’ net position increased to $615.2 Million in FY2024 led by the performances of Clean Energy and Water divisions offset by the operational challenges from Downtown Parking. In comparison to FY2023, grants revenues and investment income largely offset the average spending increase for all departments of roughly 5.0% total.

The chart below illustrates Expenses and Program Revenues for each Business-Type Activity.

Adminstration
10%
Public Safety
42%
Public Works
24%
Community Services
15%
Community
Development
9%
Sustainability and
Resilience
0%
Governmental Activities: Expenditures
$0 million
$10 million
$20 million
$30 million
$40 million
$50 million
$60 million
$70 million
$80 million
Water Wastewater Airport Waterfront Solid Waste Downtown Parking
Golf Course Clean Energy
Business-Type Activities
Expenses and Program Revenues for the year ended June 30, 2024 Expenses Revenues
I II II I I II .. -- 11 ■ ■
(25)
Revenue Highlights
Program revenues of $265.0 Million were generated in FY2024, an increase of $28.6 Million compared to prior year. The dominant change in General revenue is attributed to Clean Energy with an increase of 287.0%.
• The Water Fund saw an increase in its revenue, or a total of $72.0 Million with a combination of $69.5 Million for charges services directly attributed to consumption and $2.1 Million receipt in their Grant fund.
• The Clean Energy division is one of the newest divisions within the City receiving revenue since FY2022. Fees are closely tied to changes in Southern California Edison’s (SCE’s) rates and directly impacted by consumer usage. FY2024 experienced an increase. The result is a strong positive outcome that surpasses its expenditure. For this year, $54.0 Million was generated against $43.0 Million for FY2023. • Solid Waste accounts for trash and recycling services. At the end of the fiscal year, the department reported $38.4 Million in service charges.
• Wastewater revenue is mainly tied to water consumption for which, its return was higher than FY2023 or $29.0 Million which reflects 99.0% of service charges. • The Airport continues to see a strong level of commercial airline passenger activity.

Revenues exceeded expectations for parking, ground transportation, rental cars, and concessions. FY2024 ended at $38.0 Million lead by Parking, industrial & aviation leases, and rentals revenues, a 13.6% change with FY2023.
• Other departments such as Waterfront, Golf Course, and Downtown Parking performed equally or slightly higher. Combined, their revenues came at $34.0 Million, a difference of $1.0 Million with prior year.

Expense Highlights
Expenses of Business-Type Activities for FY2024 came to an average increase of 3.0% with FY2023. The change is mainly attributed to the costs of revenues generated and payroll expenses. Total expenditure was $227.5 Million ($220.2 Million as of June 30, 2023), a $7.3 Million increase from prior year primarily due to $3.0 Million from Solid Waste and Airport by $2.3 Million. • The Water Fund expended $58.8 Million, $1.8 Million more than FY2023. FY2024 experienced a combination of reduced operating costs within the desalination and recycled water plants from significant rainfalls as well as savings due to delay in equipment upgrades and facility maintenance. This shortfall in spending was slightly offset by changes in salaries and wages.
• The Clean Energy Fund began in FY2022 and ramped up to normal, annual operations in FY2023. At the end of FY2024, $33.5 Million expenses are reported, a decrease by $4.1 Million with FY2023 that is directly attributed to cost from renewable energy certificates that may roll to the upcoming year.
• Solid Waste, with a spending of $38.1 Million came as a surplus with last year by 9.0% increase. The costs in this category include predominantly hauler fees and county fees. • The Airport Fund expenses were $35.8 Million, a 7.0% increase from FY2023, partially directed to revenue generated. In addition, the cost to run a Fire Station at the Airport was allocated directly to the department starting in FY2024. • The Wastewater Fund expense increased by 8.0% with last year or for a total of $27.4 Million. A partial part of this variance related to revenue generated when other costs relate directly to inflation.
(26)
• Other departments: Waterfront, Downtown Parking, and Golf Course totaled $34.2 Million in expenses; a $2.3 Million increase compared with last year.

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
The focus of the City governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City financing requirements. Unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 2024, Assets in the City’s governmental funds totaled $260.3 Million ($253.9 Million as of June 30, 2023). Of this total, the majority is driven by:
• $133.6 Million of cash and investments ($115.3 Million in prior year) that includes Measure C for $47.4 Million set aside to fund critical infrastructure from a one-cent sales tax. • $71.8 Million represents deposits and outstanding loans receivable, for which the majority relates to the City’s Affordable Housing Fund and Community Development Block Grant and HOME Programs.
• $33.8 Million is split between General Fund, Street Grant Capital, and Other Governmental Funds.
• $2.1 Million in advances (loans) for other City funds which include the Clean Energy Fund, Golf Fund, and the Energy Management Fund.

Fund balances of governmental funds totaled $191.5 Million on June 30, 2024 ($187.7 Million in the prior year), an increase of $3.8 Million.
• An amount corresponding to prepaid assets, outstanding loans and advances receivable is reported as non-spendable.
• $107.7 Million ($99.9 Million in the prior year) is restricted to specific programs, projects and capital improvements with its majority for $68.0 Million allocated to Affordable Housing. • Street Grant Capital holds an adjusted balance of $7.0 Million due to various projects for which revenues were rollovers to the following year. This line item experienced a decrease by approximately $781,000 in FY2023 and should progressively come back to a positive result. One of the projects under this section is related to the Construction of the Vision Zero State Street undercrossing project with an authorized budgeted amount for $7.1 Million.
• The spendable portion which combines Committed, Assigned, and Unassigned balances is $81.5 Million, a decrease of $2.8 Million from last year.

The General Fund’s balance is $47.1 Million with the majority or $45.4 Million set aside under Committed for natural disasters and unexpected events such as significant economic downturns that have significant impact on the General Fund. The policy requires all operating funds, including General Fund, to set aside an amount equal to 25.0% of the operating budget. (27)
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 Business-Type Activities in the government-wide financial statement but in more detail.

The major proprietary funds for the City are the Water and Wastewater Funds.

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 $615.2 Million as of June 30, 2024 ($567.2 Million as of June 30, 2023), which increased $48.0 Million from the prior year. Factors concerning the finances of Unrestricted net position are addressed in the discussion of Business-Type Activities. (28)

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 & Recreation, Community Development (Building and Planning), and Public Works.

Revenues
As shown on Table 3, the amended FY2024 General Fund revenue budget of $208.1 Million reflects adjustments of $4.2 Million that were approved by the City Council during the year. The most significant amendments included intergovernmental revenue increase for $3.8 Million driven by a $1.2 Million awarded Highway Safety Improvement Project grant fund for the Cliff Drive at Alan Road & San Andres Street Highway Safety Improvement.

Actual revenues totaled $211.6 Million. Tax revenues ended the year higher than the amended budget by $3.5 Million, reflecting mainly the growth in the assessed values in proprieties as well as a slight increase in TOT due primarily to increase in average daily rates which are 30.0% to

40.0% higher than pre-pandemic rates.

Table 3

SUMMARY OF GENERAL FUND REVENUES
Fiscal Year Ended June 30, 2024
Budget & Actual – in (000's)
Original
Budgeted
Amount
Final
Budgeted
Amount
Actual
Amounts
2024
Variance
from
Budget

REVENUES
Taxes $149,366 $149,452 $150,978 $1,526
Franchise Fees $6,458 $6,458 $6,079 ($379)
Intergovernmental $1,696 $5,497 $4,441 ($1,055)
Charges for Services $29,174 $29,304 $30,167 $862
Use of Money & Property $2,262 $2,191 $5,063 $2,872
Fines & Forfeitures $3,035 $3,035 $2,394 ($641)
Other Revenues $10,888 $11,382 $10,933 ($448)
Subtotal Revenues $202,879 $207,317 $210,054 $2,737
Lease Obligation $0 $0 $841 $841
Transfers In $1,073 $828 $743 ($85)
Total other Financing Sources / (Uses) $1,073 $828 $1,584 $756 TOTAL REVENUES $203,952 $208,145 $211,639 $3,493
(29)
Expenditure
The amended FY2024 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 the end of FY2023.

As shown on Table 4 below, actual expenditures totaled $220.2 Million and were under final budget by approximately $9.4 Million. The largest savings against budget are salary and benefits due to vacancies in budgeted positions as well as projects put on hold. Discipline in spending has been an important strategy implemented by staff and approved by the City Council over the year to control expenditure and maintain reserves. The City has routinely implemented long-term financial planning strategies for infrastructure as well as protecting essential services from potentially volatile revenue.

Table 4

SUMMARY OF GENERAL FUND EXPENDITURES
Fiscal Year Ended June 30, 2024
Budget and Actual - in (000's)
Original
Budgeted
Amount
Final
Budgeted
Amount
Actual
Amounts
2024
Variance
from
Budget

EXPENDITURES
Mayor & Council $3,331 $3,409 $3,366 $43
City Attorney $5,306 $6,630 $4,626 $2,004
City Administration $3,558 $4,065 $3,928 $137
Human Resources $2,378 $2,969 $2,849 $120
Finance $7,612 $7,833 $7,262 $571
Public Safety $91,856 $97,375 $90,193 $7,182
Public Works $13,198 $12,622 $11,491 $1,131
Community Services $31,121 $32,878 $30,744 $2,134
Community Development $9,878 $10,557 $14,832 ($4,275)
Sustainability & Resilience $0 $711 $167 $544
Capital Outlay $0 $0 $841 ($841)
Debt: Principal Retirement $0 $0 $619 ($619)
Debt: Interest & Fiscal Charges $0 $0 $57 ($57)
Subtotal Expenditures $168,238 $179,048 $170,974 $8,074 Transfers Out $53,292 $50,625 $49,288 $1,337
TOTAL EXPENDITURES $221,529 $229,673 $220,262 $9,411
(30)

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.

Table 5

SUMMARY OF CAPITAL ASSETS
Fiscal Year Ended June 30, 2024
Net of Accumulated Depreciation - in (000's)
Governmental Activities Business-Type Activities Totals Non-Depreciating Assets
Construction in Progress $60,695 $56,716 $117,411
Art and Historical Treasure $1,759 $0 $1,759
Land $51,160 $24,944 $76,105
Streets $160,101 $0 $160,101
Depreciating Assets
Buildings $12,641 $79,558 $92,199
Building Improvements $40,383 $7,601 $47,984
Other Improvements $51,127 $168,103 $219,231
Equipment $13,479 $10,622 $24,101
Infrastructure $161,393 $151,476 $312,869
Right to Use Assets $4,482 $2,020 $6,502
Underground Piping $0 $89,942 $89,942
TOTAL CAPITAL ASSETS $557,222 $590,982 $1,148,204
The City owns approximately $1.1 billion of capital assets net of depreciation and accounts receivable, a change of $31.6 Million compared to the year ended June 30, 2023. 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.

With regard to capital improvements to City streets, which is also considered “infrastructure,” the City has elected to use the “modified approach” pursuant to GASB 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), (31)
where PCI scores of 51-70 are 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 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, 2024, and the average PCI for City streets exceeded the minimum policy level of 60 with a reported average score of 67, defined as “At Risk.”
Governmental Activities which include Internal Service Funds have construction in progress projects totaling $60.7 Million which have commenced or continued in FY2024. Main projects are State Street Undercrossing at Highway 101 ($6.5 Million), De la Vina at Vernon Street Bridge ($6.3 Million), Library Plaza Renovation ($6.1 Million), New Police Station ($5.8 Million), Union Pacific Railroad Bridge replacement at Cabrillo Blvd. ($4.8 Million).

For Business-Type Activities, construction in progress projects totaling $56.7 Million which commenced or continued in FY2024 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 for Desal Conveyance Pipeline ($22.6 Million), Commercial Parking Apron ($5.5 Million), El Estero Electrical ($3.7 Million), and Desal Plant Expansion ($3.0 Million), to name a few. 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 $147.6 Million ($160.6 Million in the prior year) in outstanding long-term debt at the end of FY2023, a net decrease of $13.0 Million from the prior year.

Table 6
Summary of Outstanding Issued Debt
Fiscal Year Ended June 30, 2024
in (000's)
Governmental Activities Business-Type Activities Totals Revenue Bonds $0 $32,148 $32,148
Certificates of Participation $0 $5,440 $5,440
Loans $2,744 $107,268 $110,012
Total Debt $2,744 $144,855 $147,600
Revenue Bonds
The City has a total of $32.1 Million in outstanding revenue bonds including the following: $24.4 Million of 2019 Airport refunding bonds, $4.2 Million of 2016 Sewer refunding bonds, and $3.5 Million of 2014 Waterfront refunding bonds.
(32)
Certificates of Participation (COP)
The Water Fund has $5.4 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
Under Business-Type Activities, of the outstanding $107.3 Million in loans payable, $69.7 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 40.0% 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 $52.4 Million on June 30, 2024. The Desalination Project was completed in FY2018.

The Waterfront Fund has $7.5 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 Wastewater Fund accounts for $30.0 Million in loans from the California State Water Resources Control Board for sewer infrastructure improvements. The main loan initiated at $31.4 Million and with a balance for $25.3 Million is used to assist in financing the upgrade of the aeration system and improve the secondary treatment process at El Estero Wastewater Treatment Plant. Additional information on the City’s long-term debt can be found in Note 7 to the financial statements. Currently all City Funds have sufficient reserves and cash-flow projections to meet all current debt obligations for the near future.

Under Governmental activities, the City entered into a financing agreement in December of 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 in June of 2029. The current outstanding balance is $2.7 Million as of the end of FY2024.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City’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 revenue that is either directly or indirectly tied to tourism. In the General Fund, for example, sales taxes represent 33.0% of total revenues while TOT represents 18.0%. Other operations outside of the General Fund are also dependent, to varying degrees, on tourism, such as 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. A slight decrease to 2.0% growth with a stabilized inflation for about the same percentage should moderately decelerate local revenue such as sales taxes.

Other factors such as the increase in tariffs could impact aggressively the cost of the City (33)
spending. Reassessing spending priorities, focusing on essential services and exploring costsaving measures will be a strong focus when addressing future budgets.

The FY2025 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. FY2025 projects a $7.1 Million deficit in its General Fund requiring the use of reserves. The voters approved a ½ cent increase in sales tax on November 5, 2024, increasing the sales tax rate from 8.75% to 9.25% with no sunset, that will bring an additional $15.1 Million annually beginning in FY2026 to support essential services within General Fund for years to come.

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 website at www.SantaBarbaraCa.gov/Finance/Budget-Reports. You may also contact the City’s Finance Department at PO Box 1990, Santa Barbara, California, 93102, (805) 564-5528, or email the Accounting Division, at [email protected].
(34)

BASIC FINANCIAL STATEMENTS
(35)
This page was intentionally left blank.

CITY OF SANTA BARBARA

STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(36)
Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:

Pooled Cash and Investments $ 176,095,210 $ 210,439,025 $ 386,534,235 Receivables:

Accounts, Net 4,103,048 37,501,957 41,605,005
Loans 71,872,337 - 71,872,337
Interest 2,321,630 - 2,321,630
Leases 196,921 7,956,210 8,153,131
Due from Other Governments 33,792,588 - 33,792,588
Prepaid Assets and Deposits 2,574,150 5,511,638 8,085,788 Inventory - 101,374 101,374
Internal Balances 7,639,075 (7,639,075) -
Total Current Assets 298,594,959 253,871,129 552,466,088 Noncurrent Assets:

Receivables:

Loans - 2,864,317 2,864,317
Leases 4,105,814 24,221,163 28,326,977
Restricted:

Cash and Investments with Fiscal Agents - 4,258,558 4,258,558 Capital Assets:

Not Being Depreciated/Amortized 273,715,554 81,660,022 355,375,576 Being Depreciated/Amortized, Net 283,506,482 509,321,709 792,828,191 Total Noncurrent Assets 561,327,850 622,325,769 1,183,653,619 Total Assets 859,922,809 876,196,898 1,736,119,707

DEFERRED OUTFLOWS OF RESOURCES
Pension-Related items 107,945,274 20,757,020 128,702,294 OPEB-Related items 13,507,659 - 13,507,659
Deferred Charge on Refunding - 879,965 879,965
Total Deferred Outflows of Resources 121,452,933 21,636,985 143,089,918

CITY OF SANTA BARBARA

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(37)
Governmental Business-Type
Activities Activities Total

LIABILITIES
Current Liabilities:

Accounts Payable $ 18,902,383 $ 20,887,461 $ 39,789,844 Salaries and Benefits Payable 5,268,232 1,904,722 7,172,954 Interest Payable - 973,660 973,660
Unearned Revenue 4,504,371 1,038,465 5,542,836
Deposits 612,169 3,019,755 3,631,924
Due to Other Governments 13,497,274 - 13,497,274
Lease Payable 341,552 64,539 406,091
Subscription Payable 961,839 350,296 1,312,135
Compensated Absences 9,263,084 3,145,731 12,408,815
Claims Liabilities 4,600,000 - 4,600,000
Net Pension Liability 26,232 - 26,232
Total OPEB Liability 2,028,722 - 2,028,722
Long-Term Debt 543,217 13,344,829 13,888,046
Total Current Liabilities 60,549,075 44,729,458 105,278,533 Noncurrent Liabilities:

Unearned Revenue - 2,864,317 2,864,317
Lease Payable 2,164,835 976,015 3,140,850
Subscription Payable 889,814 639,924 1,529,738
Net Pension Liability 349,984,328 67,311,901 417,296,229 Total OPEB Liability 41,505,975 - 41,505,975
Compensated Absences 1,029,229 349,524 1,378,753
Claims Liability 16,880,155 - 16,880,155
Long-Term Debt 2,201,166 135,670,015 137,871,181
Total Noncurrent Liabilities 414,655,502 207,811,696 622,467,198 Total Liabilities 475,204,577 252,541,154 727,745,731

DEFERRED INFLOWS OF RESOURCES
Lease Related 4,030,765 29,942,046 33,972,811
Pension Related 4,941,235 101,453 5,042,688
OPEB Related 22,255,212 - 22,255,212
Total Deferred Inflows of Resources 31,227,212 30,043,499 61,270,711

NET POSITION
Net Investment in Capital Assets 541,873,371 434,138,394 976,011,765 Restricted for:

Administration 1,677,986 - 1,677,986
Public Safety Projects 1,487,106 - 1,487,106
Public Works 31,258,534 - 31,258,534
Community Services 6,884,202 - 6,884,202
Community Development 6,728,688 - 6,728,688
Capital Improvements 4,488,612 - 4,488,612
Debt Service Reserve - 4,258,558 4,258,558
Airport Improvements - 5,049,859 5,049,859
Affordable Housing 68,008,654 - 68,008,654
Unrestricted (187,463,200) 171,802,419 (15,660,781)
Total Net Position $ 474,943,953 $ 615,249,230 $ 1,090,193,183

CITY OF SANTA BARBARA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(38)
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
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
$ 23,802,978 $ 1,433,948 $ 9,672,198 $ -
100,519,862 6,423,845 2,407,282 -
58,407,872 9,959,276 958,761 22,973,713
34,779,431 7,864,055 4,430,062 -
22,672,707 8,444,419 6,944,552 -
971,544 - - -
241,154,394 34,125,543 24,412,855 22,973,713
58,758,913 69,513,858 2,140,095 -
27,454,056 28,722,374 520,696 -
35,795,315 32,012,161 5,991,085 3,333
18,286,665 19,581,770 - 12,012
37,866,343 38,359,774 22,503 -
12,349,963 9,487,864 - -
3,561,286 4,577,005 - -
33,475,365 54,136,729 - -
227,547,906 256,391,535 8,674,379 15,345
$ 468,702,300 $ 290,517,078 $ 33,087,234 $ 22,989,058

CITY OF SANTA BARBARA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(39)
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 AND TRANSFERS
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

CHANGES IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
Governmental Business-Type
Activities Activities Total
$ (12,696,832) $ - $ (12,696,832)
(91,688,735) - (91,688,735)
(24,516,122) - (24,516,122)
(22,485,314) - (22,485,314)
(7,283,736) - (7,283,736)
(971,544) - (971,544)
(159,642,283) - (159,642,283)
- 12,895,040 12,895,040
- 1,789,014 1,789,014
- 2,211,264 2,211,264
- 1,307,117 1,307,117
- 515,934 515,934
- (2,862,099) (2,862,099)
- 1,015,719 1,015,719
- 20,661,364 20,661,364
- 37,533,353 37,533,353
(159,642,283) 37,533,353 (122,108,930)
48,672,111 - 48,672,111
32,260,782 - 32,260,782
60,579,007 - 60,579,007
4,250,122 - 4,250,122
16,330,483 - 16,330,483
1,311,001 - 1,311,001
837,750 - 837,750
15,051 - 15,051
6,078,814 - 6,078,814
108,052 - 108,052
8,377,480 10,819,159 19,196,639
922,299 188,823 1,111,122
445,242 (445,242) -
180,188,194 10,562,740 190,750,934
20,545,911 48,096,093 68,642,004
454,398,042 567,153,137 1,021,551,179
$ 474,943,953 $ 615,249,230 $ 1,090,193,183
Net Revenue (Expense) and
Changes in Net Position

CITY OF SANTA BARBARA

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(40)
Special Revenue
Fund Other Total
General Affordable Measure C Street Grant Governmental Governmental Fund Housing Capital Capital Funds Funds
ASSETS
Pooled Cash and Investments $ 27,746,723 $ 9,671,756 $ 47,398,110 $ - $ 48,819,097 $ 133,635,686 Receivables:

Accounts, Net 3,162,475 - - - 790,863 3,953,338
Loans 5,645 58,369,418 - - 13,497,274 71,872,337
Interest 2,321,630 - - - - 2,321,630
Leases 3,969,424 - - - 333,311 4,302,735
Due from Other Governments 14,868,027 - - 12,839,144 6,085,417 33,792,588 Prepaids Assets and Deposits 111,504 - - - - 111,504
Interfund Receivables 8,228,563 - - - - 8,228,563
Advances to Other Funds 2,131,691 - - - - 2,131,691
Total Assets $ 62,545,682 $ 68,041,174 $ 47,398,110 $ 12,839,144 $ 69,525,962 $ 260,350,072

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES
Accounts Payable $ 3,393,099 $ 4,395 $ 7,625,904 $ 3,399,225 $ 3,632,835 $ 18,055,458 Salaries and Benefits Payable 4,117,876 28,125 - - 459,841 4,605,842 Unearned Revenue 3,476,570 - - - 1,027,801 4,504,371
Deposits 349,911 - - - 262,258 612,169
Due to Other Governments - - - - 13,497,274 13,497,274
Interfund Payables - - - 4,053,791 4,174,772 8,228,563
Advances from Other Funds - - 884,634 - - 884,634
Total Liabilities 11,337,456 32,520 8,510,538 7,453,016 23,054,781 50,388,311

DEFERRED INFLOWS OF

RESOURCES
Leases 3,717,172 - - - 313,593 4,030,765
Unavailable Revenue 351,572 - - 12,477,332 1,629,340 14,458,244 Total Deferred Inflows of
Resources 4,068,744 - - 12,477,332 1,942,933 18,489,009

FUND BALANCES (DEFICITS)
Nonspendable 2,248,840 - - - - 2,248,840
Restricted 4,211,414 68,008,654 - - 35,484,006 107,704,074 Committed 45,430,890 - 38,887,572 - 12,110,990 96,429,452 Unassigned (4,751,662) - - (7,091,204) (3,066,748) (14,909,614) Total Fund Balances (Deficits) 47,139,482 68,008,654 38,887,572 (7,091,204) 44,528,248 191,472,752 Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances (Deficits) $ 62,545,682 $ 68,041,174 $ 47,398,110 $ 12,839,144 $ 69,525,962 $ 260,350,072 Capital Projects
Funds

CITY OF SANTA BARBARA

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(41)

RECONCILIATION TO THE STATEMENT OF NET POSITION
Fund Balances for Governmental Funds $ 191,472,752
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 $20,884,750 of internal service funds net capital assets.

Capital Assets Not Being Depreciated/Amortized $ 273,121,422 Capital Assets Being Depreciated/Amortized 455,709,618
Accumulated Depreciation (192,493,754) 536,337,286
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, 2024 are:

Compensated Absences (9,495,725)
Lease Obligations (1,938,499)
Subscription Obligations (546,664)
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 102,204,048 Deferred Inflows of Resources - Pension Related (4,913,175) Total Pension Liability (93,232)
Net Pension Liability (330,609,591) (233,411,950)
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. (21,931,491)
Receivables that are measurable but not available are recorded as deferred inflows of resources under the modified accrual basis of accounting. 14,458,244 Net Position of Governmental Activities as Reported on the Statement of Net Position $ 474,943,953

CITY OF SANTA BARBARA

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(42)
Special Revenue
Fund Other Total
General Affordable Measure C Street Grant Governmental Governmental Fund Housing Capital Capital Funds Funds

REVENUES
Taxes $ 150,978,022 $ - $ - $ - $ 18,405,911 $ 169,383,933 Franchise Fees 6,078,814 - - - - 6,078,814
Intergovernmental 4,441,456 - - 9,247,493 12,747,604 26,436,553 Charges for Services 30,166,625 - - - 423,507 30,590,132 Use of Money and Property 5,062,763 1,688,969 - - 1,111,370 7,863,102 Fines and Forfeitures 2,393,594 - - - 539,013 2,932,607 Other 10,933,138 - - - 3,939,315 14,872,453
Total Revenues 210,054,412 1,688,969 - 9,247,493 37,166,720 258,157,594

EXPENDITURES
Current:

Mayor and City Council 3,366,038 - - - - 3,366,038
City Attorney 4,625,666 - - - 200,555 4,826,221
City Administration 3,928,057 - - - - 3,928,057
Human Resources 2,849,018 - - - - 2,849,018
Finance 7,261,921 - - - 162,980 7,424,901
Public Safety 90,193,110 - - - 1,474,988 91,668,098
Public Works 11,490,638 - - - 17,377,809 28,868,447
Community Services 30,743,694 - - - 1,901,199 32,644,893 Community Development 14,831,746 1,491,894 - - 3,962,200 20,285,840 Sustainability and Resilience 167,067 - - - 723,828 890,895 Capital Outlay 840,600 - 33,891,846 11,043,781 8,831,784 54,608,011 Debt Service:

Principal Retirement 619,043 - 55,015 - 7,364 681,422
Interest and Fiscal Charges 57,203 - 7,985 - 37,787 102,975 Total Expenditures 170,973,801 1,491,894 33,954,846 11,043,781 34,680,494 252,144,816

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 39,080,611 197,075 (33,954,846) (1,796,288) 2,486,226 6,012,778

OTHER FINANCING SOURCES
(USES)
Lease Obligation - - 499,137 - - 499,137
Subscription Obligation 840,600 - - - - 840,600
Transfers In 743,490 - 33,501,239 2,577,341 19,175,749 55,997,819 Transfers Out (49,288,483) (7,599) (140,578) - (10,173,282) (59,609,942) Total Other Financing
Sources (Uses) (47,704,393) (7,599) 33,859,798 2,577,341 9,002,467 (2,272,386) NET CHANGE IN FUND BALANCE (8,623,782) 189,476 (95,048) 781,053 11,488,693 3,740,392 Fund Balances (Deficit) - Beginning of Year,
as Previously Presented 55,763,264 67,819,178 - (7,872,257) 72,022,175 187,732,360 Change Within Financial Reporting Entity
(Nonmajor to Major Fund) - - 38,982,620 - (38,982,620) - Fund Balances (Deficits) - Beginning of Year,
as Restated 55,763,264 67,819,178 38,982,620 (7,872,257) 33,039,555 187,732,360

FUND BALANCES (DEFICIT) -
END OF YEAR $ 47,139,482 $ 68,008,654 $ 38,887,572 $ (7,091,204) $ 44,528,248 $ 191,472,752 Capital Projects
Funds

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, 2024
See accompanying Notes to Basic Financial Statements.
(43)

RECONCILIATION TO THE STATEMENT OF ACTIVITIES
Net Change in Fund Balances - Total Governmental Funds $ 3,740,392 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/amortization 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 $ 29,240,372
Depreciation/Amortization Expense (10,010,778) 19,229,594 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 499,137
Subscription Obligation 833,737
Principal Paid 681,422
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. (547,116)
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. (12,352,936) 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. 2,992,906 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. 5,468,775 Change in Net Position of Governmental Activities as Reported in the Statement of Activities $ 20,545,911

CITY OF SANTA BARBARA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(44)
Water Wastewater Airport Waterfront Solid Waste
ASSETS
Current Assets:

Pooled Cash and Investments $ 103,428,960 $ 22,149,499 $ 30,864,163 $ 15,387,629 $ 6,711,566 Accounts Receivable, Net 13,475,215 5,280,123 3,338,363 274,492 6,746,984 Prepaid Assets 4,251,221 - - - -
Deposits - - - - -
Leases Receivable - 34,277 3,847,932 3,780,139 -
Inventories - - - - -
Total Current Assets 121,155,396 27,463,899 38,050,458 19,442,260 13,458,550 Noncurrent Assets:

Restricted:

Cash and Investments with Fiscal Agent 3,666,450 1 2 592,105 - Advances to Other Funds - - - - -
Leases Receivable - 312,600 14,591,370 8,732,114 -
Loans Receivable 2,864,317 - - - -
Capital Assets:

Nondepreciable/Amortizable 34,565,449 11,128,326 22,035,415 2,946,937 - Depreciable/Amortizable, Net 224,319,425 97,661,596 138,022,593 23,617,663 867,295 Total Noncurrent Assets 265,415,641 109,102,523 174,649,380 35,888,819 867,295 Total Assets 386,571,037 136,566,422 212,699,838 55,331,079 14,325,845

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 194,689 38,208 487,454 159,614 - Pension-Related Items 6,545,415 4,530,777 4,798,307 2,220,853 846,172 OPEB-Related items - - - - -
Total Deferred Outflows of Resources 6,740,104 4,568,985 5,285,761 2,380,467 846,172

LIABILITIES
Current Liabilities:

Accounts Payable 6,830,735 1,187,981 4,626,370 352,628 3,113,760 Salaries and Benefits Payable 524,811 363,928 406,700 291,193 74,256 Interest Payable 55,433 270,697 300,370 347,160 -
Unearned Revenue - - 278,584 250,337 323,739
Deposits 943,086 258 1,317,797 707,299 -
Interfund Payable - - - - -
Compensated Absences Payable 1,024,393 614,147 538,786 493,995 125,328 Lease Payable - - - 16,069 10,942
Subscription Payable 182,462 13,230 154,604 - -
Claims Payable - - - - -
Total OPEB Liability, Due in One Year - - - - -
Current Portion Long-Term Debt 7,736,471 2,785,132 1,250,000 1,573,226 - Total Current Liabilities 17,297,391 5,235,373 8,873,211 4,031,907 3,648,025 Noncurrent Liabilities:

Advances from Other Funds - - - - -
Unearned Revenue 2,864,317 - - - -
Net Pension Liability 20,513,287 13,812,534 13,638,956 8,878,455 2,259,381 Total Other Postemployment Benefit Liability - - - - -
Compensated Absences Payable, Net of Current Portion 113,821 68,239 59,865 54,888 13,925 Lease Payable, Net of Current Portion - - - 74,309 897,678 Subscription Payable, Net of Current Portion 331,867 - 299,727 8,330 - Claims Payable, Net of Current Portion - - - - -
Long-Term Debt, Net of Current Portion 68,057,534 31,877,799 26,310,980 9,423,702 - Total Noncurrent Liabilities 91,880,826 45,758,572 40,309,528 18,439,684 3,170,984 Total Liabilities 109,178,217 50,993,945 49,182,739 22,471,591 6,819,009

DEFERRED INFLOWS OF RESOURCES
Lease Related - 329,281 17,405,822 11,398,229 -
Pension Related 31,991 22,145 23,453 10,855 4,135
OPEB Related - - - - -
Total Deferred Inflows of Resources 31,991 351,426 17,429,275 11,409,084 4,135

NET POSITION
Net Investment in Capital Assets 179,805,772 73,704,525 129,336,324 15,575,578 (41,325) Restricted for Debt Service 3,666,450 1 2 592,105 -
Restricted for Airport Improvements - - 5,049,859 - -
Unrestricted 100,628,711 16,085,510 16,987,400 7,663,188 8,390,198 Total Net Position $ 284,100,933 $ 89,790,036 $ 151,373,585 $ 23,830,871 $ 8,348,873

CITY OF SANTA BARBARA

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(45)
Other Enterprise Internal
Clean Energy Funds Total Service Funds
ASSETS
Current Assets:

Pooled Cash and Investments $ 22,604,005 $ 9,293,203 $ 210,439,025 $ 42,459,524 Accounts Receivable, Net 8,190,951 195,829 37,501,957 149,710 Prepaid Assets 1,035,417 - 5,286,638 2,462,646
Deposits - 225,000 225,000 -
Leases Receivable - 293,862 7,956,210 -
Inventories - 101,374 101,374 -
Total Current Assets 31,830,373 10,109,268 261,510,204 45,071,880 Noncurrent Assets:

Restricted:

Cash and Investments with Fiscal Agent - - 4,258,558 -
Advances to Other Funds - - - 884,634
Leases Receivable - 585,079 24,221,163 -
Loans Receivable - - 2,864,317 -
Capital Assets:

Nondepreciable/Amortizable - 10,983,895 81,660,022 594,132 Depreciable/Amortizable, Net - 24,833,137 509,321,709 20,290,618 Total Noncurrent Assets - 36,402,111 622,325,769 21,769,384 Total Assets 31,830,373 46,511,379 883,835,973 66,841,264

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - - 879,965 -
Pension-Related Items 235,307 1,580,189 20,757,020 5,741,226 OPEB-Related items - - - 13,507,659
Total Deferred Outflows of Resources 235,307 1,580,189 21,636,985 19,248,885

LIABILITIES
Current Liabilities:

Accounts Payable 4,227,504 548,483 20,887,461 846,925
Salaries and Benefits Payable 30,149 213,685 1,904,722 662,390 Interest Payable - - 973,660 -
Unearned Revenue - 185,805 1,038,465 -
Deposits - 51,315 3,019,755 -
Interfund Payable - - - -
Compensated Absences Payable 48,917 300,165 3,145,731 716,931 Lease Payable - 37,528 64,539 6,839
Subscription Payable - - 350,296 679,794
Claims Payable - - - 4,600,000
Total OPEB Liability, Due in One Year - - - 1,991,632
Current Portion Long-Term Debt - - 13,344,829 543,217
Total Current Liabilities 4,306,570 1,336,981 44,729,458 10,047,728 Noncurrent Liabilities:

Advances from Other Funds 2,131,691 - 2,131,691 -
Unearned Revenue - - 2,864,317 -
Net Pension Liability 373,980 7,835,308 67,311,901 19,307,737 Total Other Postemployment Benefit Liability - - - 41,543,065 Compensated Absences Payable, Net of Current Portion 5,435 33,351 349,524 79,657 Lease Payable, Net of Current Portion - 4,028 976,015 561,049 Subscription Payable, Net of Current Portion - 639,924 625,195 Claims Payable, Net of Current Portion - - - 16,880,155 Long-Term Debt, Net of Current Portion - - 135,670,015 2,201,166 Total Noncurrent Liabilities 2,511,106 7,872,687 209,943,387 81,198,024 Total Liabilities 6,817,676 9,209,668 254,672,845 91,245,752

DEFERRED INFLOWS OF RESOURCES
Lease Related - 808,714 29,942,046 -
Pension Related 1,150 7,724 101,453 28,060
OPEB Related - - - 22,255,212
Total Deferred Inflows of Resources 1,150 816,438 30,043,499 22,283,272

NET POSITION
Net Investment in Capital Assets - 35,757,520 434,138,394 16,267,490 Restricted for Debt Service - - 4,258,558 -
Restricted for Airport Improvements - - 5,049,859 -
Unrestricted 25,246,854 2,307,942 177,309,803 (43,706,365) Total Net Position $ 25,246,854 $ 38,065,462 620,756,614 $ (27,438,875) Prior years’ accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds (7,532,572) Current year’s adjustment to reflect the consolidation of internal service funds’ activities related to the enterprise funds 2,025,188 Net Position of Business-Type Activities $ 615,249,230

CITY OF SANTA BARBARA

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(46)
Water Wastewater Airport Waterfront Solid Waste

OPERATING REVENUES
Sales $ 64,475,335 $ 27,862,369 $ - $ - $ 38,285,784
Service Charges 3,766,589 816,656 9,821,623 12,692,470 - Other Revenues 1,271,934 2,186 197,740 801,340 68,070
Total Operating Revenues 69,513,858 28,681,211 10,019,363 13,493,810 38,353,854

OPERATING EXPENSES
Salaries, Wages, and Benefits 14,843,497 9,997,409 11,604,098 8,360,655 1,927,104 Material, Supplies, and Services 33,191,729 11,696,366 16,417,747 7,915,425 36,066,411 Depreciation/Amortization 10,544,378 5,224,745 6,713,936 1,625,332 59,221 Total Operating Expenses 58,579,604 26,918,520 34,735,781 17,901,412 38,052,736 OPERATING INCOME (LOSS) 10,934,254 1,762,691 (24,716,418) (4,407,602) 301,118

NONOPERATING REVENUES (EXPENSES)
Interest Income 4,683,223 998,457 2,196,704 1,227,922 297,113 Intergovernmental Revenue 2,140,095 520,696 5,991,085 - 22,503 Leases and Rents - 41,163 21,992,798 6,087,960 5,920
Other Income - - 188,823 - -
Interest Expense (612,745) (732,453) (1,294,420) (529,097) (43,185) Total Nonoperating Revenues
(Expenses) 6,210,573 827,863 29,074,990 6,786,785 282,351

INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 17,144,827 2,590,554 4,358,572 2,379,183 583,469

CONTRIBUTIONS
Capital Contributions - - 3,333 12,012 -
Total Contributions - - 3,333 12,012 -

TRANSFERS
Transfers In - - - - 6,506
Transfers Out (380,439) (86,943) (604,914) (129,635) (112,404) Total Transfers (380,439) (86,943) (604,914) (129,635) (105,898) CHANGES IN NET POSITION 16,764,388 2,503,611 3,756,991 2,261,560 477,571 Total Net Position (Deficit) - Beginning of Year 267,336,545 87,286,425 147,616,594 21,569,311 7,871,302 TOTAL NET POSITION (DEFICIT) - END OF YEAR $ 284,100,933 $ 89,790,036 $ 151,373,585 $ 23,830,871 $ 8,348,873

CITY OF SANTA BARBARA

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(47)
Other Enterprise Internal
Clean Energy Funds Total Service Funds

OPERATING REVENUES
Sales $ - $ - $ 130,623,488 $ -
Service Charges 54,136,729 13,289,471 94,523,538 45,481,131 Other Revenues - 128,191 2,469,461 2,106,433
Total Operating Revenues 54,136,729 13,417,662 227,616,487 47,587,564

OPERATING EXPENSES
Salaries, Wages, and Benefits 461,504 5,879,658 53,073,925 16,242,003 Material, Supplies, and Services 33,013,861 8,712,336 147,013,875 25,407,954 Depreciation/Amortization - 1,438,858 25,606,470 3,628,311 Total Operating Expenses 33,475,365 16,030,852 225,694,270 45,278,268 OPERATING INCOME (LOSS) 20,661,364 (2,613,190) 1,922,217 2,309,296

NONOPERATING REVENUES (EXPENSES)
Interest Income 305,191 446,228 10,154,838 1,280,393
Intergovernmental Revenue - - 8,674,379 -
Leases and Rents - 647,207 28,775,048 -
Other Income - - 188,823 -
Interest Expense - (2,603) (3,214,503) (153,091)
Total Nonoperating Revenues
(Expenses) 305,191 1,090,832 44,578,585 1,127,302

INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 20,966,555 (1,522,358) 46,500,802 3,436,598

CONTRIBUTIONS
Capital Contributions - - 15,345 -
Total Contributions - - 15,345 -

TRANSFERS
Transfers In - 902,899 909,405 4,235,305
Transfers Out (5,418) (34,894) (1,354,647) (177,940)
Total Transfers (5,418) 868,005 (445,242) 4,057,365
CHANGES IN NET POSITION 20,961,137 (654,353) 46,070,905 7,493,963 Total Net Position (Deficit) - Beginning of Year 4,285,717 38,719,815 574,685,709 (34,932,838) TOTAL NET POSITION (DEFICIT) - END OF YEAR $ 25,246,854 $ 38,065,462 $ 620,756,614 $ (27,438,875) Adjustment to Reflect the Consolidation of Internal
Service Fund Activities Related to Enterprise Funds $ 2,025,188 Change in Net Position - Enterprise Funds 46,070,905
Change in Net Position of Business-Type Activities $ 48,096,093

CITY OF SANTA BARBARA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(48)
Water Wastewater Airport Waterfront Solid Waste

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 67,838,826 $ 28,499,340 $ 7,913,666 $ 12,180,897 $ 38,709,527 Payments to Suppliers for Goods or Services (32,429,996) (11,791,469) (13,135,501) (7,927,656) (37,358,847) Payments to Employees (13,840,168) (9,263,344) (10,479,718) (7,757,074) (1,748,274) Receipts from Others 1,271,934 2,186 197,740 801,340 68,070 Net Cash Provided (Used) by
Operating Activities 22,840,596 7,446,713 (15,503,813) (2,702,493) (329,524)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Transfers In - - - - 6,506
Cash Transfers Out (380,439) (86,943) (604,914) (129,635) (112,404) Advances from (to) Other Funds - - - - -
Operating Grants Received 2,140,095 520,696 5,991,085 - 22,503 Net Cash Provided (Used) by
Noncapital Financing Activities 1,759,656 433,753 5,386,171 (129,635) (83,395)

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Loan Proceeds - 644,064 - - -
Acquisition of Capital Assets (16,713,314) (4,666,174) (12,197,290) (1,705,233) - Lease and Rental Income - 41,163 21,992,798 6,087,960 5,920 Principal Paid on Capital Debt (7,526,758) (2,704,586) (1,388,131) (1,516,574) - Interest Paid (768,136) (847,984) (1,308,930) (519,093) (43,185) Net Cash Provided (Used) by Capital and
Related Financing Activities (25,008,208) (7,533,517) 7,098,447 2,347,060 (37,265)

CASH FLOWS FROM INVESTING ACTIVITIES
Loans Payments Received 422,125 - - - -
Investment Income 4,683,223 998,457 2,196,704 1,227,922 297,113 Net Cash Provided (Used) by
Investing Activities 5,105,348 998,457 2,196,704 1,227,922 297,113

NET CHANGE IN CASH AND CASH
EQUIVALENTS 4,697,392 1,345,406 (822,491) 742,854 (153,071) Cash and Cash Equivalents - Beginning of Year 102,398,018 20,804,094 31,686,656 15,236,880 6,864,637 CASH AND CASH EQUIVALENTS - END OF YEAR $ 107,095,410 $ 22,149,500 $ 30,864,165 $ 15,979,734 $ 6,711,566

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO THE STATEMENT OF

NET POSITION
Current Assets:

Pooled Cash and Investments $ 103,428,960 $ 22,149,499 $ 30,864,163 $ 15,387,629 $ 6,711,566 Noncurrent Assets:

Restricted:

Cash and Investments with Fiscal Agent 3,666,450 1 2 592,105 - Total Cash and Cash Equivalents $ 107,095,410 $ 22,149,500 $ 30,864,165 $ 15,979,734 $ 6,711,566

CITY OF SANTA BARBARA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(49)
Other Enterprise Internal
Clean Energy Funds Total Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 55,015,664 $ 13,294,762 $ 223,452,682 $ 45,587,424 Payments to Suppliers for Goods or Services (34,182,341) (8,906,841) (145,732,651) (26,626,751) Payments to Employees (484,041) (5,493,470) (49,066,089) (14,329,294) Receipts from Others - 128,191 2,469,461 2,106,433
Net Cash Provided (Used) by
Operating Activities 20,349,282 (977,358) 31,123,403 6,737,812

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Transfers In - 902,899 909,405 4,235,305
Cash Transfers Out (5,418) (34,894) (1,354,647) (177,940) Advances from (to) Other Funds 34,695 - 34,695 (713,579) Operating Grants Received - - 8,674,379 -
Net Cash Provided (Used) by
Noncapital Financing Activities 29,277 868,005 8,263,832 3,343,786

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Loan Proceeds - 644,064 -
Acquisition of Capital Assets - (403,906) (35,685,917) (3,205,274) Lease and Rental Income - 647,207 28,775,048 -
Principal Paid on Capital Debt - - (13,136,049) (530,629) Interest Paid - (2,603) (3,489,931) (153,091)
Net Cash Provided (Used) by Capital and
Related Financing Activities - 240,698 (22,892,785) (3,888,994)

CASH FLOWS FROM INVESTING ACTIVITIES
Loans Provided - 422,125 -
Investment Income 305,191 446,228 10,154,838 1,280,393
Net Cash Provided (Used) by
Investing Activities 305,191 446,228 10,576,963 1,280,393

NET CHANGE IN CASH AND CASH
EQUIVALENTS 20,683,750 577,573 27,071,413 7,472,997
Cash and Cash Equivalents - Beginning of Year 1,920,255 8,715,630 187,626,170 34,986,527 CASH AND CASH EQUIVALENTS - END OF YEAR $ 22,604,005 $ 9,293,203 $ 214,697,583 $ 42,459,524

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO THE STATEMENT OF

NET POSITION
Current Assets:

Pooled Cash and Investments $ 22,604,005 $ 9,293,203 $ 210,439,025 $ 42,459,524 Noncurrent Assets:

Restricted:

Cash and Investments with Fiscal Agent - - 4,258,558 -
Total Cash and Cash Equivalents $ 22,604,005 $ 9,293,203 $ 214,697,583 $ 42,459,524

CITY OF SANTA BARBARA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(50)
Water Wastewater Airport Waterfront Solid Waste

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

OPERATING ACTIVITIES
Operating Income (Loss) $ 10,934,254 $ 1,762,691 $ (24,716,418) $ (4,407,602) $ 301,118 Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization 10,544,378 5,224,745 6,713,936 1,625,332 59,221 (Increase) Decrease in Operating Assets and
Deferred Outflows of Resources:

Accounts Receivable (278,185) (173,740) (1,374,873) 104,552 251,254 Lease Receivable 14,021 32,773 (1,601,343) 1,427,664 -
Prepaids Assets and Deposits (62,046) - - - -
Inventory - - - - -
Deferred Outflows of Resources - Pension Related 328,721 254,921 567,058 426,610 37,283 Deferred Outflows of Resources - OPEB - - - - -
Increase (Decrease) in Operating Liabilities and
Deferred Inflows of Resources:

Accounts Payable 993,287 (82,989) 3,179,922 (5,122) (1,284,020) Salaries and Benefits Payable 109,099 99,570 83,264 38,132 26,660 Deposits Payable 295,142 21 39,540 19,396 -
Lease Payable - - - (15,439) (8,416)
Subscriptions Payable (169,508) (12,114) 102,324 8,330 - Unearned Revenue (422,125) - (183,504) (83,434) 172,489 Compensated Absences Payable 28,726 8,292 83,936 (40,021) 45,439 Net Pension Liability 576,130 398,801 422,349 195,480 74,481 Total Other Postemployment Benefit Liability - - - - -
Claims and Judgements - - - - -
Deferred Inflows of Resources - Lease Related (11,951) (38,739) 1,212,223 (1,979,751) - Deferred Inflows of Resources - Pension Related (39,347) (27,519) (32,227) (16,620) (5,033) Deferred Inflows of Resources - OPEB Related - - - - -
Total Adjustments 11,906,342 5,684,022 9,212,605 1,705,109 (630,642) Net Cash Provided (Used) by
Operating Activities $ 22,840,596 $ 7,446,713 $ (15,503,813) $ (2,702,493) $ (329,524)

SUPPLEMENTAL DISCLOSURES OF NONCASH

FINANCING AND INVESTING ACTIVITIES
Capital Contributions $ - $ - $ 3,333 $ 12,012 $ -
Capital Assets in Accounts Payable $ 2,171,416 $ 333,299 $ 2,939,005 $ 53,000 $ - Change in Fair Value $ 1,838,410 $ 391,725 $ 552,096 $ 273,578 $ 119,176

CITY OF SANTA BARBARA

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(51)
Other Enterprise Internal
Clean Energy Funds Total Service Funds

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

OPERATING ACTIVITIES
Operating Income (Loss) $ 20,661,364 $ (2,613,190) $ 1,922,217 $ 2,309,296 Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization - 1,438,858 25,606,470 3,628,311 (Increase) Decrease in Operating Assets and
Deferred Outflows of Resources:

Accounts Receivable 899,995 (40,563) (611,560) 106,293
Lease Receivable - 508,759 381,874 -
Prepaids Assets and Deposits (456,857) - (518,903) (492,893) Inventory - 29,899 29,899 -
Deferred Outflows of Resources - Pension Related (114,854) 163,634 1,663,373 297,957 Deferred Outflows of Resources - OPEB - - - (2,248,883) Increase (Decrease) in Operating Liabilities and
Deferred Inflows of Resources:

Accounts Payable (711,623) (152,780) 1,936,675 (617,668) Salaries and Benefits Payable 24,276 45,426 426,427 194,175 Deposits Payable - 25,399 379,498 -
Lease Payable - (71,624) (95,479) (5,259)
Subscriptions Payable - - (70,968) (447,132)
Unearned Revenue (21,060) 13,917 (523,717) -
Compensated Absences Payable 47,430 48,414 222,216 36,203 Net Pension Liability 20,711 139,088 1,827,040 505,344
Total Other Postemployment Benefit Liability - - - (3,996,605) Claims and Judgements - - - 344,155
Deferred Inflows of Resources - Lease Related - (502,221) (1,320,439) Deferred Inflows of Resources - Pension Related (100) (10,374) (131,220) (34,612) Deferred Inflows of Resources - OPEB Related - - - 7,159,130 Total Adjustments (312,082) 1,635,832 29,201,186 4,428,516 Net Cash Provided (Used) by
Operating Activities $ 20,349,282 $ (977,358) $ 31,123,403 $ 6,737,812

SUPPLEMENTAL DISCLOSURES OF NONCASH

FINANCING AND INVESTING ACTIVITIES
Capital Contributions $ - $ - $ 15,345 $ -
Capital Assets in Accounts Payable $ - $ 600 $ 5,497,320 $ - Change in Fair Value $ - $ 164,410 $ 3,339,395 $ 569,273

CITY OF SANTA BARBARA

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(52)
Custodial
Funds
ASSETS
Current Assets:

Pooled Cash and Investments $ 587,681
Accounts Receivable, Net 62,760
Loans Receivable 2,052,972
Total Current Assets 2,703,413

LIABILITIES
Current Liabilities:

Accounts Payable 1,542
Due to the City Of Santa Barbara 66,600
Total Current Liabilities 68,142

NET POSITION
Restricted for Others 2,635,271
Total Net Position $ 2,635,271

CITY OF SANTA BARBARA

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(53)
Custodial
Funds

ADDITIONS
Investment Income:

Interest $ 52,058
Charges for Service 147,625
Total Additions 199,683

DEDUCTIONS
Administrative Expenses 219,182
Program Expenses 72,177
Total Deductions 291,359
CHANGE IN NET POSITION (91,676)
Net Position - Beginning of Year 2,726,947
NET POSITION - END OF YEAR $ 2,635,271
(54)

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(55)
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 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, 2024
(56)
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, 2024
(57)
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:

General Fund
This 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.

Affordable Housing Special Revenue Fund
This 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.

Measure C Capital Project Fund
This fund accounts for capital projects financed by Measure C sales tax revenue.

Street Grant Capital Project Fund
This fund accounts for street-related capital projects financed by various grants.

The following are the major proprietary funds of the City:

Water Fund
This fund accounts for the provisions of water services to the residents of the City and some residents of the County.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(58)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Wastewater Fund
This fund accounts for the provision of sewer services to the residents of the City and some residents of the County.

Airport Fund
This fund accounts for the operation of the municipal airport and the administration of leases of airport property.

Waterfront Fund
This fund accounts for the operation of the City managed waterfront that includes a public wharf, a small craft harbor, and parking facilities.

Solid Waste Fund
This 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.

Clean Energy Fund
This 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
This fund accounts 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
This fund accounts 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
This fund accounts 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) self-insurance 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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(59)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Fiduciary Funds
Custodial Funds
This fund is 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 moderateincome applicant’s rehabilitation housing loans, and (2) moneys received from agencies for the California Law Enforcement Tracking System (CLETS).

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(60)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncements
GASB Statement No. 100, Accounting Changes and Error Corrections – An Amendment to GASB Statement No. 62 defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. The Statement prescribes the accounting and financial reporting for each type of accounting change and for error corrections. See Note 19 for further information on how the implementation of GASB Statement No. 100 had on the City’s financial statements.

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(61)
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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(62)
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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(63)
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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(64)
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, 2024, 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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(65)
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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(66)
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, 2024, are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments $ 386,534,235
Cash and Investments with Fiscal Agents 4,258,558
Fiduciary Funds:

Cash and Investments 587,681
Total Cash and Investments $ 391,380,474
Cash on Hand $ 48,305
Demand Deposit Accounts with Financial Institutions 71,401,248 Investments 319,930,921
Total Cash and Investments $ 391,380,474
All of the City’s deposits, except certain cash balances held by fiscal agents, are entirely insured or collateralized.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(67)
NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED)
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 in
Authorized Investment Type Maturity Portfolio* 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 40% 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 Placement Deposit Services 5 Years 30% 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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(68)
NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements (Continued)
Maximum Maximum
Maximum Percent of Investment in
Authorized Investment Type Maturity Portfolio 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 $ 69,369,009 .5 Years
U.S. Agency Securities 148,069,770 .8 Years
Corporate Medium Term Notes 6,742,930 .0 Years
Supranational Obligations 14,419,600 .1 Years
State Investment Pool (LAIF) 74,723,703 N/A
Held by Trustees/Fiscal Agents:

Money Market Fund 3,248,964 N/A
Investment Contracts 1,009,525 N/A
Section 115 PARS 2,347,420 N/A
Total $ 319,930,921

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(69)
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, 2024 Level 1 Level 2 Level 3
U.S. Treasury Notes $ 69,369,009 $ - $ 69,369,009 $ -
U.S. Agency Securities 148,069,770 - 148,069,770 -
Corporate Medium-Term Notes 6,742,930 - 6,742,930 -
Supranational Obligations 14,419,600 - 14,419,600 -
Total Investments at Fair Value 238,601,309 $ - $ 238,601,309 $ - Investments at Amortized Cost:

Held by Trustees/Fiscal Agents:

Money Market Funds 3,248,964
Investment Contracts 1,009,525
Section 115 PARS 2,347,420
Subtotal 6,605,909
Investments not Subject to Hierarchy:

State Investment Pool (LAIF) 74,723,703
Total Investments $ 319,930,921

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(70)
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 $ 69,369,009 N/A $ 69,369,009 $ - $ - $ - $ - $ - U.S. Agency Securities 148,069,770 N/A - 148,069,770 - - - - Corporate Medium-Term Notes 6,742,930 A - - 4,787,330 - 1,955,600 - Supranational Obligations 14,419,600 N/A - 14,419,600 - - - - Local Agency Investment Pool (LAIF) 74,723,703 N/A - - - - - 74,723,703 Held by Trustees/Fiscal Agents:

Money Market 3,248,964 N/A - - - - - 3,248,964
Investment Contracts 1,009,525 N/A 1,009,525 - - - - -
Section 115 PARS 2,347,420 N/A 2,347,420 - - - - -
Total $ 319,930,921 $ 72,725,954 $ 162,489,370 $ 4,787,330 $ - $ 1,955,600 $ 77,972,667 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:

Reported
Issuer Investment Type Amount Percent
U.S. Treasury Note Government Sponsored $ 69,369,010 21.7 % Federal Home Loan Bank Government Sponsored 56,385,250 17.6 Federal Farm Credit Bank Government Sponsored 47,571,420 14.9 Federal Home Loan Mortgage Corp. Government Sponsored 30,556,190 9.6 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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(71)
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, 2024, 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, 2024, the various components of unearned revenue reported are as follows:

Unearned
Governmental Funds:

General Fund:

Advance on American Rescue Plan Act Funding $ 1,110,483 Prepaid Parks and Recreation Fees 2,366,087
Subtotal 3,476,570
Other Governmental Funds:

Miscellaneous Grants Fund:

Advance on Library Grant Funding 325,887
Advance on Police Grant Funding 366,302
FEMA Reimbursement Fund:

Advance on FEMA Grant Funding 335,612
Subtotal 1,027,801
Total Governmental Funds $ 4,504,371

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(72)
NOTE 3 UNEARNED REVENUE (CONTINUED)
Unearned
Business-Type Activities:

Water Fund:

Joint Venture Agreement $ 2,864,317
Waterfront Fund:

Prepaid Slipholder Revenue 250,337
Solid Waste Fund:

Advance on State Grant Funding 323,739
Airport Fund:

Prepaid Rent Revenue 278,584
Golf Course Fund:

Golf Gift Cards and Credit Vouchers 185,805
Total Business-Type Activities $ 3,902,782
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, 2024, were as follows:

Balance
June 30, 2024
Governmental Activities:

Deferred Pension-Related Items $ 107,945,274
Deferred OPEB-Related Items 13,507,659
Total $ 121,452,933
Business-Type Activities:

Deferred Loss on Refunding:
2013 Water Certificates of Participation $ 194,689
2014 Waterfront Refunding Revenue Bonds 159,614
2016 Wastewater Revenue Refunding Bonds 38,208
2019 Airport Revenue Refunding Bonds 487,454
Deferred Pension-Related Items 20,757,020
Total $ 21,636,985

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(73)
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, 2024, was as follows:

Transfers/
Beginning Remeasurements/ Ending
Balance Increases Reclassifications Decreases Balance
Governmental Activities:

Nondepreciating/Amortizing Capital Assets:

Construction in Progress $ 38,118,139 $ 29,266,203 $ (6,397,118) $ (292,105) $ 60,695,119 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/Amortizing
Capital Assets 251,138,574 29,266,203 (6,397,118) (292,105) 273,715,554 Depreciating/Amortizing Capital Assets:

Buildings 30,569,592 - - - 30,569,592
Building Improvements 52,818,538 306,516 176,534 - 53,301,588 Improvements Other than Buildings 86,470,923 269,544 1,821,023 - 88,561,490 Equipment 53,163,485 2,015,665 6,142 (656,697) 54,528,595 Infrastructure 265,800,015 1,526,967 4,353,699 - 271,680,681 Right-to-Use Assets - Subscriptions 2,870,574 1,349,218 - - 4,219,792 Right-to-Use Assets - Leases Buildings 2,997,700 676,248 - (614,101) 3,059,847 Subtotal 494,690,827 6,144,158 6,357,398 (1,270,798) 505,921,585 Less: Accumulated Depreciation/Amortization for:

Buildings 17,402,799 525,542 - - 17,928,341
Building Improvements 11,721,429 1,196,789 - - 12,918,218 Improvements Other than Buildings 34,726,769 2,707,465 - - 37,434,234 Equipment 38,999,421 2,746,458 (39,720) (656,697) 41,049,462 Infrastructure 105,553,403 4,734,001 - - 110,287,404
Right-to-Use Assets - Subscriptions 888,659 1,225,255 - - 2,113,914 Right-to-Use Assets - Leases Buildings 794,052 503,579 - (614,101) 683,530 Subtotal 210,086,532 13,639,089 (39,720) (1,270,798) 222,415,103 Total Capital Assets Being
Depreciated/Amortization, Net 284,604,295 (7,494,931) 6,397,118 - 283,506,482 Governmental Activities
Capital Assets, Net $ 535,742,869 $ 21,771,272 $ - $ (292,105) $ 557,222,036

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(74)
NOTE 5 CAPITAL ASSETS (CONTINUED)
Governmental Activities (Continued)
Depreciation expense was charged to functions/programs of the governmental activities as follows:

Governmental Activities:

Administration $ 4,493,282
Public Safety 634,685
Public Works 6,066,329
Community Services 1,605,954
Community Development 838,839
Total Depreciation Expense -
Governmental Activities $ 13,639,089
Business-Type Activities
Beginning Transfers/ Ending
Balance Increases Reclassifications Decreases Balance
Business-Type Activities:

Nondepreciating/Amortizing Capital Assets:

Land $ 24,944,374 $ - $ - $ - $ 24,944,374
Construction in Progress 40,017,055 22,879,236 (6,180,643) - 56,715,648 Total Nondepreciating/Amortizing
Capital Assets 64,961,429 22,879,236 (6,180,643) - 81,660,022 Depreciating/Amortizing Capital Assets:

Buildings 136,167,323 - - - 136,167,323
Building Improvements 13,633,364 - 465,560 - 14,098,924 Improvements Other Than Buildings 466,771,643 934,232 4,409,016 - 472,114,891 Equipment 62,080,019 869,684 1,306,067 - 64,255,770
Underground Piping 238,265,990 10,656,847 - - 248,922,837 Infrastructure 193,683,396 - - - 193,683,396
Right-to-Use Assets - Subscriptions 1,365,195 361,262 - - 1,726,457 Right-to-Use Assets - Leases Buildings 1,279,213 - - - 1,279,213 Subtotal 1,113,246,143 12,822,025 6,180,643 - 1,132,248,811 Less: Accumulated Depreciation/Amortization for:

Buildings 54,327,062 2,282,034 - - 56,609,096
Building Improvements 6,185,320 312,616 - - 6,497,936
Improvements Other Than Buildings 294,238,921 9,772,689 - - 304,011,610 Equipment 51,395,673 2,238,382 - - 53,634,055
Underground Piping 153,142,789 5,837,653 - - 158,980,442 Infrastructure 37,552,823 4,655,018 - - 42,207,841
Right-to-Use Assets - Subscriptions 300,439 384,691 - - 685,130 Right-to-Use Assets - Leases Buildings 177,605 123,387 - - 300,992 Subtotal 597,320,632 25,606,470 - - 622,927,102
Total Capital Assets Being
Depreciated/Amortized, Net 515,925,511 (12,784,445) 6,180,643 - 509,321,709 Business-Type Activities
Capital Assets, Net $ 580,886,940 $ 10,094,791 $ - $ - $ 590,981,731

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(75)
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 $ 10,544,378
Wastewater 5,224,745
Airport 6,713,936
Waterfront 1,625,332
Solid Waste 59,221
Downtown Parking 1,187,605
Golf 251,253
Total Depreciation Expense -
Business-Type Activities $ 25,606,470
NOTE 6 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of June 30, 2024, is as follows:

The interfund balances at June 30, 2024, 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 $ 4,053,791 General Fund Other Governmental Funds 4,174,772
Total $ 8,228,563
Advances to/from Other Funds
Receivable Fund Payable Fund Amount
General Fund Clean Energy Enterprise Fund $ 2,131,691
Internal Service Fund Measure C Capital Fund 884,634
Total $ 3,016,325
The General Fund advanced money to the Clean Energy Enterprise Fund. This advance, totaling $2,131,691 at June 30, 2024, 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, 2024
(76)
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, 2024, 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 Solid
Measure Grant Other Waste Other
General C Capital Capital Governmental Enterprise Enterprise Internal Transfers Out Fund Fund Fund Funds Fund Funds Service Total Governmental Funds:

General Fund $ - $ 33,501,239 $ - $ 11,776,939 $ - $ 902,899 $ 3,107,406 $ 49,288,483 Affordable Housing 122 - - - - - 7,477 7,599
Measure C Capital - - - 140,578 - - - 140,578
Other Govt Funds 401,582 - 2,577,341 6,947,698 - - 246,661 10,173,282 Enterprise Funds:

Water 2,484 - - 250,668 - - 127,287 380,439
Wastewater 1,617 - - - - - 85,326 86,943
Airport 280,176 - - - - - 324,738 604,914
Waterfront 2,096 - - 59,866 - - 67,673 129,635
Solid Waste 50,383 - - - - - 62,021 112,404
Clean Energy - - - - - - 5,418 5,418
Other Enterprise Funds 3,084 - - - - - 31,810 34,894
Internal Service Funds 1,946 - - - 6,506 - 169,488 177,940 Total Transfers $ 743,490 $ 33,501,239 $ 2,577,341 $ 19,175,749 $ 6,506 $ 902,899 $ 4,235,305 $ 61,142,529 Transfers In
The most significant interfund transfers related to the following:

1. Transfers from the General Fund to Other Governmental Funds totaled $40.8 million.

We processed transfers from General Fund for $33.5 million to Measure C capital Fund for various projects throughout the city such as but not limited to: roadway, sidewalk and access ramp improvements, business corridor improvements, and design work for the development of the new Police Station. Two other significant transfers for $3.6 million and $1.4 million relate to CIP and February 2024 storm respectively. This last one will most likely be recovered by reimbursement to the General Fund through FEMA or CalOES.

2. Transfer from General Fund to Other Enterprise Funds total $900K. It is primarily dominated by $200K to Rental Housing Outreach, $265.5K for the Downtown Ambassador program and $303.8K for the Downtown Marketing Contract.

3. Transfer from General Fund to Internal Service Fund for $1.4 million is a combination of seven transactions averaging $116K each to cover items such as Network structure, Accela improvements. An accounting adjustment, $598.3K to Fire truck lease, took place at the end of fiscal year 2024 to realign appropriately the lease schedules.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(77)
NOTE 6 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED)

4. Transfers between Other Governmental Funds totaled $11.8 million and were primarily comprised of the following capital outlay transfers:
a. $1.4 million from Measure A Fund to Measure A capitalization Fund for maintenance of streets.
b. $2.1million from Streets Fund to Streets Capital Fund. c. $2.7 million from the Creeks Fund to Creeks Capital Fund. d. $5.7million broken down in three transactions; $2.9 million transfer out to Affordable Housing Trust (resolution 22-059), $1.7million transfer to OPEB Fund, and $1.1 million reclass to General Fund. Non-Dept. from Measure A.

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).

Long-term liability activity for the year ended June 30, 2024, is as follows:

Amount Due
Beginning Ending Amount Due In More Than
Balance Additions Deletions Balance in One Year One Year Governmental Activities:

Other Long-Term Liabilities:

Compensated Absences $ 9,708,995 $ 10,525,911 $ 9,942,593 $ 10,292,313 $ 9,263,084 $ 1,029,229 Financing Agreement 3,275,011 - 530,628 2,744,383 543,217 2,201,166 Lease Payable 2,262,239 499,137 254,989 2,506,387 341,552 2,164,835 Subscription Payable 1,889,878 1,607,899 1,646,124 1,851,653 961,839 889,814 Claims Liability 21,136,000 5,122,110 4,777,955 21,480,155 4,600,000 16,880,155 Governmental Activity:

Long-Term Liabilities 38,272,123 17,755,057 17,152,289 38,874,891 15,709,692 23,165,199 Business-Type Activities:

Direct Borrowings:

Loans 114,794,604 644,064 8,170,947 107,267,721 8,136,108 99,131,613 Other Debt:

Revenue Bonds 35,247,759 - 3,100,104 32,147,655 3,248,721 28,898,934 Certificates of Participation 7,305,000 - 1,865,000 5,440,000 1,960,000 3,480,000 Unamortized Debt Premium 4,724,299 - 538,738 4,185,561 - 4,185,561 Unamortized Debt Discount (34,793) - (8,700) (26,093) - (26,093) Subtotal 162,036,869 644,064 13,666,089 149,014,844 13,344,829 135,670,015 Other Long-Term Liabilities:

Lease Payable 1,136,033 - 95,479 1,040,554 64,539 976,015 Subscription Payable 1,061,188 323,097 394,065 990,220 350,296 639,924 Compensated Absences 3,273,039 3,574,005 3,351,789 3,495,255 3,145,731 349,524 Subtotal 5,470,260 3,897,102 3,841,333 5,526,029 3,560,566 1,965,463 Business-Type Activity:

Long-Term Liabilities 167,507,129 4,541,166 17,507,422 154,540,873 16,905,395 137,635,478 Total Debt Activity $ 205,779,252 $ 22,296,223 $ 34,659,711 $ 193,415,764 $ 32,615,087 $ 160,800,677

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(78)
NOTE 7 LONG-TERM DEBT (CONTINUED)
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, 2024, are as follows:

Year Ending June 30, Principal Interest Total
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 $ 2,744,383 $ 183,066 $ 2,927,449
Governmental Activities
Business-Type Activities
A description of long-term obligations outstanding at June 30, 2024 by category follows:

Description Amount
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. Remainin
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 semi-annually. $ 4,190,000
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%. 3,527,655

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(79)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Business-Type Activities (Continued)
Description (Continued) Amount
Revenue Bonds (Continued):

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 semi-annually. $ 24,430,000
Total Revenue Bonds 32,147,655
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 semi-annually. 5,440,000
Total Certificates of Participation 5,440,000
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 semi-annual payments of $572,123. Interest is

2.5132% per annum. The final payment is due July 1, 2025. 1,123,034 $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 semi-annual payments of $849,840. Interest is

2.5017% per annum. The final payment is due July 1, 2035. 16,256,418

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(80)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Business-Type Activities (Continued)
Description (Continued) Amount
Loans Payable (Continued):

Water Fund
$80,000,000 California State Water Resources Control
Board Loan. Funds used to assist in financing the
desalination plant reactivation project. Due in semi-annual payments of $2,104,805. Interest is 1.663% per annum.

The final payment is due July 1, 2038. $ 52,383,248
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. 1,128,795
$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. 2,977,632
$31,388,033 - California State Water Resources Control
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. 25,285,257 $9,351,381 - California State Water Resources Control
Board Loan. Funds used to assist in financing the upgrade to the Braemer Lift Station Rehabilitation Project. For the current year the City requested drawdowns of $644,064.

Principal and interest will not be due until one year from the completion of the project expected on December 31,
2025. Annual payments begin on December 2026 for 20
years at an interest rate of 1.75%. Remaining amount to be drawn down is $8,707,317. The final payment is due
December 31, 2045. An amortization schedule is not yet
available for the amounts drawn to date. 644,064

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(81)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Business-Type Activities (Continued)
Description (Continued) Amount
Loans Payable (Continued):

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. $ 7,469,273
Total Loans Payable 107,267,721
Total Business-Type Activities $ 144,855,376
The annual requirements to amortize all long-term debt outstanding as of June 30, 2024, are as follows:

Principal Payments
Revenue Certificates of Direct Borrowings
Fiscal Year Funding Bonds Participation Other Loans Total 2025 $ 3,248,721 $ 1,960,000 $ 8,136,108 $ 13,344,829
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 1,515,000 - 7,636,060 9,151,060
2030-2034 8,785,000 - 40,399,445 49,184,445
2035-2039 8,755,000 - 29,138,817 37,893,817
Total Principal $ 32,147,655 $ 5,440,000 $ 107,267,721 $ 144,855,376 Interest Payments
Revenue Certificates of Direct Borrowings
Fiscal Year Funding Bonds Participation Other Loans Total 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 952,750 - 1,555,781 2,508,531
2030-2034 3,014,750 - 5,522,444 8,537,194
2035-2039 1,654,500 - 1,622,220 3,276,720
Total Interest $ 10,821,441 $ 279,175 $ 16,518,658 $ 27,619,274 Total Debt $ 42,969,096 $ 5,719,175 $ 123,786,379 $ 172,474,650 Business-Type Activities
Business-Type Activities

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(82)
NOTE 7 LONG-TERM DEBT (CONTINUED)
Business-Type Activities (Continued)
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.

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(83)
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.

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). Commitmentsfor 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, 2024, total governmental fund encumbrance balances for the City are as follows:

General Fund $ 2,775,641
Measure C Capital Fund 22,082,193
Street Grant Fund 16,614,599
Other Governmental Funds 18,620,840
Total Governmental Funds $ 60,093,273
NOTE 9 RETIREMENT COMMITMENTS
The following is a summary of pension related items for the year ended June 30, 2024:

Deferred Deferred Net Pension Pension
Outflows Inflows Liability Expense
Miscellaneous $ 62,463,114 $ (305,297) $ 208,286,471 $ 36,577,840 Safety Police 30,590,934 (1,685,391) 117,449,130 17,792,241 Safety Fire 35,622,014 (3,052,000) 91,493,628 10,900,041 Safety Retirement 26,232 - 93,232 19,609
Total $ 128,702,294 $ (5,042,688) $ 417,322,461 $ 65,289,731 Pension liabilities are liquidated from the related employees’ home program, with the majority funded out of the General Fund.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(84)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS)

1. General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police) and Miscellaneous (all other) Plans, agent multiemployerdefined benefit pension plans and the City’s Safety (fire) Plan, a costsharing 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.

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(85)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

1. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:

Hire Date Prior to After Prior to After Prior to After
April 1 January 1 April 1 January 1 April 1 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 5 Years of 5 Years of 5 Years of
Schedule 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 12.370% 11.320% 23.550% 23.550% 29.090% 14.500% Payment of Unfunded
Liability $ 18,160,730 $ - $ 7,720,186 $ - $ 6,305,647 $ - Plan
Miscellaneous Safety Police
Plan
Safety Fire
Plan
Employees Covered
At the measurement date ended June 30, 2023, the following employees were covered by the benefit terms for each Plan:

Miscellaneous Safety (Police)
Inactive Employees or Beneficiaries Currently
Receiving Benefits 1,212 286
Inactive Employees Entitled to But Not Yet
Receiving Benefits 1,057 83
Active Employees 791 121
Total 3,060 490

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(86)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

1. General Information about the Pension Plans (Continued) 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, 2024, of $27,706,627, $11,701,880, and $9,345,001, 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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(87)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

2. Net Pension Liability (Continued)
Actuarial Assumptions (Continued)
Miscellaneous Plan Safety Police Plan Safety Fire Plan
Valuation Date June 30, 2022 June 30, 2022 June 30, 2022 Measurement Date June 30, 2023 June 30, 2023 June 30, 2023 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.

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(88)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

2. Net Pension Liability (Continued)
Long-Term Expected Rate of Return (Continued)
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.

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
None in fiscal year ended June 30, 2024.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(89)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

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

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2022
(Measurement Date) $ 719,054,167 $ 516,265,720 $ 202,788,447 Changes in the Year:

Service Cost 12,549,353 - 12,549,353
Interest on the Total Pension Liability 49,212,492 - 49,212,492 Changes of Benefit Terms 718,430 - 718,430
Differences Between Actual and
Expected Experience 6,986,493 - 6,986,493
Contribution - Employer - 26,738,073 (26,738,073)
Contribution - Employee - 5,451,316 (5,451,316)
Net Investment Income - 32,158,993 (32,158,993)
Benefit Payments, Including Refunds
of Employee Contributions (39,618,535) (39,618,535) -
Administrative Expenses - (379,638) 379,638
Net Changes 29,848,233 24,350,209 5,498,024
Balance at June 30, 2023
(Measurement Date) $ 748,902,400 $ 540,615,929 $ 208,286,471 Miscellaneous Plan
Increase (Decrease)
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2022
(Measurement Date) $ 325,783,244 $ 215,373,122 $ 110,410,122 Changes in the Year:

Service Cost 5,083,581 - 5,083,581
Interest on the Total Pension Liability 22,440,322 - 22,440,322 Changes of Benefit Terms 132,258 - 132,258
Differences Between Actual and
Expected Experience 6,081,287 - 6,081,287
Contribution - Employer - 11,557,330 (11,557,330)
Contribution - Employee - 1,920,427 (1,920,427)
Net Investment Income - 13,379,058 (13,379,058)
Benefit Payments, Including Refunds
of Employee Contributions (18,633,081) (18,633,081) -
Administrative Expenses - (158,375) 158,375
Net Changes 15,104,367 8,065,359 7,039,008
Balance at June 30, 2023
(Measurement Date) $ 340,887,611 $ 223,438,481 $ 117,449,130 Safety Plan
Increase (Decrease)

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(90)
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
As of June 30, 2024, 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 $ 91,493,628
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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2022 and 2023, was as follows:

Safety Fire
Proportion - June 30, 2022 1.26718 %
Proportion - June 30, 2023 1.22401
Change - Increase (Decrease) (0.04317)%
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 1-percentage-point lower or 1-percentage-point higher than the current rate:
1% Decrease Current Rate 1% Increase
Plan Type (5.90%) (6.90%) (7.90%)
Miscellaneous $ 305,905,176 $ 208,286,471 $ 127,754,422 Safety Police 163,323,691 117,449,130 79,984,472
Safety Fire 123,368,597 91,493,628 65,433,573
Total $ 592,597,464 $ 417,229,229 $ 273,172,467
Discount Rate

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(91)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

4. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

5. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2024, the City of Santa Barbara Miscellaneous, Safety Police, and Safety Fire Plans recognized pension expense/(income) of $36,577,840, $17,792,241, and $10,900,041 respectively. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date $ 27,706,627 $ -
Differences Between Actual and Expected
Experience 4,577,357 (305,297)
Changes of Assumptions 5,954,088 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 24,225,042 -
Total $ 62,463,114 $ (305,297)
Miscellaneous Plan
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date $ 11,701,880 $ -
Differences Between Actual and Expected
Experience 4,114,550 (1,685,391)
Changes of Assumptions 4,680,950 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 10,093,554 -
Total $ 30,590,934 $ (1,685,391)
Safety Police Plan

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(92)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
A. Public Employees’ Retirement System (CalPERS) (Continued)

5. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension Contributions Subsequent to
Measurement Date $ 9,345,001 $ -
Differences Between Actual and Expected
Experience 6,717,320 (575,074)
Changes of Assumptions 5,339,690 -
Changes in Proportion and Difference Between
Employer Contributions and Proportionate
Share of Contributions 1,699,125 (2,476,926)
Net Differences Between Projected and Actual
Earnings on Plan Investments 12,520,878 -
Total $ 35,622,014 $ (3,052,000)
Safety Fire Plan
$27,706,627 for Miscellaneous, $11,701,880 for Safety Police, and $9,345,001 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, 2025. 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 2025 $ 12,285,239 $ 6,139,274 $ 7,058,989
2026 4,521,950 3,663,363 5,255,795
2027 17,011,595 7,141,386 10,560,748
2028 632,406 259,640 349,481
Total $ 34,451,190 $ 17,203,663 $ 23,225,013

6. Payable to the Pension Plan
At June 30, 2024, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(93)
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, 2023 measurement date, a total of five 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, 2023, using an annual actuarial valuation as of June 30, 2023. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Measurement Date June 30, 2023
Valuation Date June 30, 2023
Discount Rate 3.65%
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 3.65% based on bond buyer 20-Bond General Obligation Index as of June 30, 2023.

Change in Assumption
The discount rate changed from 3.54% to 3.65%.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(94)
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, 2022 $ 99,855
Changes in the Year:

Interest on Total Pension Liability 3,071
Differences Between Actual and
Expected Experience 16,834
Changes in Assumptions (296)
Benefit Payments (26,232)
Net Changes (6,623)
Balance at June 30, 2023 $ 93,232
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 3.65%, as well as what the total pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.65%) or 1-percentage-point higher (4.65%) than the current rate.

Current
1% Lower Discount Rate 1% Higher
Safety Fire Plan (2.65%) (3.65%) (4.65%)
Plan's Net Pension Liability/Assets $ 95,997 $ 93,232 $ 90,636

4. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2024, the City recognized pension expense of $19,609.

As of June 30, 2024, 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, 2025.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(95)
NOTE 9 RETIREMENT COMMITMENTS (CONTINUED)
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 (IRC) Section 457. Under the termsof 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.

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(96)
NOTE 10 DEFERRED INFLOWS OF RESOURCES (CONTINUED)
Deferred inflows of resources balances as reported on the statement of net position for the year ended June 30, 2024, were as follows:

Governmental Activities:

Deferred Pension-Related Items $ 4,941,235
Deferred OPEB-Related Items 22,255,212
Deferred Lease-Related Items 4,030,765
Total $ 31,227,212
Business-Type Activities:

Deferred Pension-Related Items $ 101,453
Deferred Lease-Related Items 29,942,046
Total $ 30,043,499
Deferred inflows of resources balances as reported on the Governmental Funds Balance Sheet for the year ended June 30, 2024, were as follows:

Governmental Fund Financials:

Major Government Funds:

General Fund - Lease Related Items $ 3,717,172
General Fund - Unavailable Fire Department Grant
Revenue 1,274
General Fund - Unavailable CalRecycle Grant Revenue 19,917 General Fund - Unavailable Administrative Citation
Revenue 330,381
Street Grant Capital Fund - Unavailable Grant Revenue 12,477,332 Total $ 16,546,076
Nonmajor Governmental Funds:

Streets Fund - Lease Related Items $ 313,593
Misc. Grants Fund - Unavailable Grant Revenue 326,712
PLHA Fund - Unavailable Grant Revenue 652,689
FEMA Reimbursement Fund - Unavailable Grant
Revenue 649,939
Total $ 1,942,933

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(97)
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 fund balance. Amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
• Restricted fund balance. 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 fund balance. 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 fund balance. 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 fund balance. 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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(98)
NOTE 11 CLASSIFICATION OF NET POSITION (CONTINUED)
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.

The components of the City’s fund balances at June 30, 2024, consist of the following:

Special Revenue
Fund Other
General Affordable Street Grant Governmental Governmental Fund Housing Measure C Capital Fund Funds
Fund Balances:

Nonspendable:

Prepaid Assets and Deposits $ 111,504 $ - $ - $ - $ - $ 111,504 Loans Receivable 5,645 - - - - 5,645
Advances to Other Funds 2,131,691 - - - - 2,131,691
Restricted for:

Administration 1,677,986 - - - - 1,677,986
Public Safety 266,934 - - - 887,713 1,154,647
Public Works 12,326 - - - 18,768,876 18,781,202
Community Services - - - - 6,864,285 6,864,285
Community Development 2,254,168 - - - 4,474,520 6,728,688 Capital Improvements - - - - 4,488,612 4,488,612
Affordable Housing - 68,008,654 - - - 68,008,654
Committed for:

Capital Improvements - - 38,887,572 - 12,110,990 50,998,562 Contingencies 18,172,356 - - - - 18,172,356
Disaster Contingency 27,258,534 - - - - 27,258,534
Unassigned (4,751,662) - - (7,091,204) (3,066,748) (14,909,614) Total Fund Balances $ 47,139,482 $ 68,008,654 $ 38,887,572 $ (7,091,204) $ 44,528,248 $ 191,472,752 Capital Projects
Funds

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(99)
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.

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 38th year in July 2024 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 $50 million in coverage above that level. Thus, the City’s participation in ACCEL provides liability coverage of $60 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 (the 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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(100)
NOTE 12 SELF-INSURANCE FUND (CONTINUED)
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 two separate claims under the property insurance policy and one claim under the pollution policy during FY2024. No other claims were filed during fiscal year 2024.

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, 2024, the estimated outstanding liabilities using the 75% confidence level are $20,459,000 for workers’ compensation and $4,769,000 for general and automobile liability. These liabilities are based on an actuarial valuation as of June 30, 2024. There are no unpaid claims for which annuity contracts have been purchased.

The City is self-insured for unemployment claims. At June 30, 2024, the liability for unemployment claims was $28,971, which is not included below. A summary of changes in claims liabilities is shown below:
2024 2023 2022
Claims Liabilities - July 1 $ 21,136,000 $ 18,323,786 $ 18,386,428 Incurred Claims 4,777,955 5,795,706 4,908,663
Actuarial Adjustment 344,155 2,812,214 (62,642)
Payments on Claims Attributable to
Events of Current and Prior Years (4,777,955) (5,795,706) (4,908,663) Claims Liabilities - June 30 $ 21,480,155 $ 21,136,000 $ 18,323,786

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(101)
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.

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(102)
NOTE 13 JOINT POWER AGREEMENTS (CONTINUED)
Central Coast Water Authority (Continued)
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
2024-25 $ 3,352,560 $ 107,013 $ 1,045,555 $ 172,922 $ 1,218,477 $ 4,678,050 2025-26 3,010,347 607,251 1,097,832 698,249 1,796,081 5,413,679 2026-27 2,945,346 343,126 1,152,724 180,225 1,332,949 4,621,421 2027-28 3,043,371 360,282 1,210,360 190,352 1,400,712 4,804,365 2028-29 3,037,905 378,296 1,270,878 200,984 1,471,862 4,888,063 Total $ 15,389,529 $ 1,795,968 $ 5,777,349 $ 1,442,732 $ 7,220,081 $ 24,405,578 DWR Costs CCWA Costs
(1) Source: CCWA State Water Cost 10-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 39.73% 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 $17,379,452 ($1,123,033 and $16,256,419). Of these loan balances, $1,123,033 is shared by the City of Santa Barbara (80.3%) and Montecito (19.7%); $10,731,139 is shared by the City of Santa Barbara (75.37%) and Montecito (24.63%); and $5,525,280 is for the City of Santa Barbara (100%) for improvements to the Ortega Groundwater Treatment Plant.

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(103)
NOTE 13 JOINT POWER AGREEMENTS (CONTINUED)
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 2024 year-end COMB expenditures, as presented at the August 26, 2024, COMB Board Meeting:

Operations Division $ 3,372,409
Fisheries Division 1,544,190
Operations Subtotal $ 4,916,599
Total Fiscal Year 2024 Expenditures $ 4,916,599
Expenditures for fiscal year 2024 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).

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.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(104)
NOTE 13 JOINT POWER AGREEMENTS (CONTINUED)
Cachuma Conservation Release Board (Continued)
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 2024 year-end CCRB expenditures as of June 30, 2024, for the portion of these activities that CCRB funds, as presented at the October 7, 2024, CCRB Board Meeting:

General and Administrative $ 226,641
Legal Activities 141,349
Consultant Activities 298,986
SWRCB Water Rights 103,094
Hydrologic Technical Support 5,925
Total Fiscal Year 2024 Expenditures $ 775,995
Cachuma Project yield held by CCRB members, resulting in a City cost share percentage of

40.88%, for most items. This represents approximately $317,227 in City costs for fiscal year 2024 excluding any offsets from other CCRB income.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(105)
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, and 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, 2024, the City has $5,645 in employee loans outstanding. The City has loaned all approved funds and is not currently accepting any new applications for EMLAP loans.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(106)
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, 2024, the City recognized $9,088,809 and $1,552,003 in lease revenue and interest revenue, respectively, pursuant to these agreements.

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. As of June 30, 2024, lease assets and the related accumulated amortization totaled $4,339,060 and $984,522, respectively.

Total future minimum lease payments are as follows:

Year Ending June 30, Principal Interest Principal Interest 2025 $ 341,552 $ 103,000 $ 64,539 $ 46,462
2026 358,742 88,765 34,427 44,757
2027 317,326 74,217 34,034 43,337
2028 95,113 66,713 37,932 41,760
2029 92,333 62,928 42,110 39,998
2030-2034 331,582 265,061 181,019 175,844
2035-2039 467,478 177,911 311,652 118,607
2040-2043 502,261 43,850 334,841 29,234
Total $ 2,506,387 $ 882,445 $ 1,040,554 $ 539,999
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, 2024, SBITA assets and the related accumulated amortization totaled $5,946,249 and $2,799,044, respectively.

The future subscription payments under SBITA agreements are as follows:

Year Ending June 30, Principal Interest Principal Interest 2025 $ 961,839 $ 42,789 $ 350,296 $ 26,345
2026 602,668 16,302 399,508 11,393
2027 174,101 6,833 194,177 1,945
2028 79,801 2,902 46,239 -
2029 33,244 354 - -
Total $ 1,851,653 $ 69,180 $ 990,220 $ 39,683
Governmental Activities Business-Type Activities

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(107)
NOTE 17 DEFICIT FUND EQUITY
The following funds had deficit balances as of June 30, 2024:

Street Grant Capital Fund $ (7,091,204)
Permanent Local Housing Allocation Fund (453,490)
Street Sweeping Fund (98,803)
FEMA Reimbursement Fund (2,438,457)
Self-Insurance Internal Service Fund (11,005,376)
Postemployment Benefits Internal Service Fund (50,805,327) Deficit in the Streets Grants Capital Funds, Permanent Local Housing Allocation, Street Sweeping, and FEMA Reimbursement, will be eliminated through receipt of revenue in fiscal year 2025. 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, 2024. 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, 2024:

Deferred Deferred Total OPEB OPEB
Outflows Inflows Liability Expense
Retiree Medical Care Benefits $ 11,681,149 $(20,940,213) $ 34,951,579 $ 2,034,887 Sick Leave Retiree Benefits 1,826,510 (1,314,999) 8,583,118 907,477 Total $ 13,507,659 $(22,255,212) $ 43,534,697 $ 2,942,364 A. Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums

1. Plan Description
The City provides a retiree medical insurance contribution benefit, in accordance with employee Memorandum of Understanding, to retired employees. This is a singleemployer defined benefits OPEB plan. The benefit is applicable to employees who retire from City service and,
a. have at least 10 or 15 years of classified or unclassified service, depending on bargaining unit; or
b. retire from City with an industrial disability.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(108)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
A. Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)

1. Plan Description (Continued)
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 non- CalPERS 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, 2024
(109)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
A. Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)

1. 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.

2. Employees Covered
As of the June 30, 2024, the following current and former employees were covered by the benefit terms under the plan:

Number of
Covered
Participants
Inactive Currently Receiving Benefits 383
Inactive Entitled to but not yet Receiving Benefits 615 Active Employees* 983
Total 1,981
*Excludes active employees who would not meet service eligibility at age 65.

3. 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, 2024, cash benefit payments were $882,163 and the estimated implied subsidy was $528,328 resulting in total payments of $1,410,491.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(110)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
A. Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)

4. Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2023 for the measurement period July 1, 2022 through June 30, 2023. The total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation dated June 30, 2023.

Actuarial Assumptions
Discount Rate 3.65%
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 2025,
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 3.65%. The discount rate is based on the bond buyer 20-bond index.

Change in Assumption
The discount rate changed from 3.54% to 3.65%.

5. 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 7/1/22 - 6/30/23):

Service Cost $ 2,099,664
Interest 1,422,132
Actual vs. Expected Experience 4,241,401
Assumption Changes (10,220,197)
Benefit Payments (1,329,960)
Net Changes (3,786,960)
Total OPEB Liability - Beginning of Year 38,738,539
Total OPEB Liability - End of Year $ 34,951,579

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(111)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
A. Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)

6. 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 1-percentage-point lower or 1-percentage-point higher than the current discount rate, for the measurement period June 30, 2023.
1% Decrease Discount Rate 1% Increase
(2.65%) (3.65%) (4.65%)
Total OPEB Liability $ 39,812,016 $ 34,951,579 $ 30,956,477 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 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
1% Decrease Current Rate 1% Increase
Total OPEB Liability $ 30,396,446 $ 34,951,579 $ 40,724,305 Healthcare Trend Rate

7. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $2,034,887. At June 30, 2024, 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 $ 4,989,712 $ (20,547,213)
Differences Between Actual and Expected
Experience 5,280,946 (393,000)
Employer Benefit Payments Made Subsequent
to the Measurement Date 1,410,491 -
Total $ 11,681,149 $ (20,940,213)

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(112)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
A. Retiree Medical Care Benefits and Implied Subsidy of Retiree Health Insurance Premiums (Continued)

7. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
The $1,410,491 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2025.

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
2025 $ (1,495,261)
2026 (1,412,261)
2027 (1,335,261)
2028 (1,289,261)
2029 (1,683,109)
Thereafter (3,454,402)
Total $ (10,669,555)
B. Sick Leave Retiree Benefits

1. 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.

2. Employees Covered
As of the June 30, 2023 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
Active Employees 976
Total 977

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(113)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
B. Sick Leave Retiree Benefits (Continued)

3. 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.

Actuarial Assumptions
Discount Rate 3.65%
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 3.65%. The discount rate is based on the bond buyer 20-bond index.

Change in Assumption
The discount rate changed from 3.54% to 3.65%.

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(114)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
B. Sick Leave Retiree Benefits (Continued)

5. 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 7/1/22 - 6/30/23):

Service Cost $ 591,506
Interest 320,639
Changes of Benefit Terms -
Actual vs. Expected Experience (75,817)
Assumption Changes (392,653)
Benefit Payments (653,320)
Net Changes (209,645)
Total OPEB Liability - Beginning of Year 8,792,763
Total OPEB Liability - End of Year $ 8,583,118

6. 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 1-percentage-point lower or 1-percentage-point higher than the current discount rate, for the measurement period June 30, 2023:
1% Decrease Current Rate 1% Increase
(2.65%) (3.65%) (4.65%)
Total OPEB Liability $ 9,056,048 $ 8,583,118 $ 8,129,874 Discount Rate

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(115)
NOTE 18 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)
B. Sick Leave Retiree Benefits (Continued)

7. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $907,477. At June 30, 2024, 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 $ 393,119 $ (1,155,500)
Differences Between Actual and Expected
Experience 815,160 (159,499)
Employer Benefit Payments Made Subsequent
to the Measurement Date 618,231 -
Total $ 1,826,510 $ (1,314,999)
The $618,231 reported as deferred outflows of resources related to employer benefit payments made subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year June 30, 2025. 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
2025 $ (4,668)
2026 (4,688)
2027 (4,668)
2028 (5,668)
2029 24,332
Thereafter (111,380)
Total $ (106,740)

CITY OF SANTA BARBARA

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(116)
NOTE 19 ACCOUNTING CHANGES AND ERROR CORRECTIONS
Change in Fund Presentation from Nonmajor to Major
Effective July 1, 2023, Special Revenue Measure C Fund met the criteria to be reported as a major governmental fund. For the fiscal year ended June 30, 2023, this fund was reported as a nonmajor governmental fund. The effect of this change within the financial reporting entity is shown in the table below.

Changes to or
June 30, 2023 Within the
As Previously Financial June 30, 2023
Presented Reporting Entity As Restated
Governmental Funds:

Major Funds:

Special Revenue Measure C Fund $ - $ 38,982,620 $ 38,982,620 Nonmajor Governmental Funds 72,022,175 (38,982,620) 33,039,555 Total $ 79,256,856 $ - $ 79,256,856
(117)
(118)

REQUIRED SUPPLEMENTARY INFORMATION
(119)
This page was intentionally left blank.

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. (120)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:

Interest on Total Pension Liability $ 3,071 $ 2,123 $ 3,124 $ 6,130 $ 7,135 Differences Between Expected and Actual
Experience 16,834 16,997 (16,140) (10,704) 23,260
Changes in Assumptions (296) (4,425) (1,370) 5,666 809
Changes in Benefits - - - - -
Benefit Payments, Including Refunds
of Employee Contributions (26,232) (26,232) (31,152) (38,631) (42,216) Net Change in Total Pension Liability (6,623) (11,537) (45,538) (37,539) (11,012) Total Pension Liability - Beginning of Year 99,855 111,392 156,930 194,469 205,481 Total Pension Liability - End of Year (a) 93,232 99,855 111,392 156,930 194,469 Plan Fiduciary Net Position:

Contributions - Employer - - - - -
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) $ 93,232 $ 99,855 $ 111,392 $ 156,930 $ 194,469 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%.

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

The discount rate was increased from 3.54% to 3.65%.

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. (121)
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:

Interest on Total Pension Liability $ 8,117 $ 16,437 $ 38,189 $ 58,515 $ 63,008 Differences Between Expected and Actual
Experience (4,543) 26,062 41,577 (237,062) -
Changes in Assumptions (2,865) (13,101) 64,419 42,874 - Changes in Benefits - (416,227) (227,990) 54,434 -
Benefit Payments, Including Refunds
of Employee Contributions (43,905) (90,589) (116,087) (113,370) (173,700) Net Change in Total Pension Liability (43,196) (477,418) (199,892) (194,609) (110,692) Total Pension Liability - Beginning of Year 248,677 726,095 925,987 1,120,596 1,231,288 Total Pension Liability - End of Year (a) 205,481 248,677 726,095 925,987 1,120,596 Plan Fiduciary Net Position:

Contributions - Employer - 48,972 48,972 49,611 102,126 Net Investment Income - 4,392 28,595 1,123 62,733
Benefit Payments - (506,816) (116,087) (113,370) (173,700) Net Change in Plan Fiduciary Net Position - (453,452) (38,520) (62,636) (8,841) Plan Fiduciary Net Position - Beginning of Year - 453,452 491,972 554,608 563,449 Plan Fiduciary Net Position - End of Year (b) - - 453,452 491,972 554,608 Total Pension Liability - Ending (a)-(b) $ 205,481 $ 248,677 $ 272,643 $ 434,015 $ 565,988 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 0.00% 0.00% 62.45% 53.13% 49.49% 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%.

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

The discount rate was increased from 3.54% to 3.65%.

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. (122)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Actuarially Determined Contribution $ 26,232 $ 26,232 $ 26,232 $ 31,152 $ 38,631 Contributions in Relation to the
Actuarially Determined Contributions (26,232) (26,232) (26,232) (31,152) (38,631) 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. (123)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Actuarially Determined Contribution $ 42,216 $ 43,905 $ 48,972 $ 49,611 $ 108,000 Contributions in Relation to the
Actuarially Determined Contributions (42,216) (43,905) (48,972) (49,611) (104,000) Contribution Deficiency (Excess) $ - $ - $ - $ - $ 4,000 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. (124)
Measurement Date 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Annual Money-Weighted
Rate of Return, Net of
Investment Expense 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 6.40% 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. (125)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:

Service Cost $ 12,549,353 $ 12,049,649 $ 10,993,296 $ 11,117,944 $ 11,242,442 Interest on Total Pension Liability 49,212,492 47,202,721 45,902,084 44,176,368 42,609,454 Differences Between Expected and Actual
Experience 6,986,493 (1,068,539) 1,483,308 (1,621,002) 5,289,518 Changes in Assumptions - 20,839,306 - - -
Changes in Benefits 718,430 - - - -
Benefit Payments, Including Refunds
of Employee Contributions (39,618,535) (36,541,549) (33,626,670) (31,532,186) (28,975,301) Net Change in Total Pension Liability 29,848,233 42,481,588 24,752,018 22,141,124 30,166,113 Total Pension Liability - Beginning of Year 719,054,167 676,572,579 651,820,561 629,679,437 599,513,324 Total Pension Liability - End of Year (a) 748,902,400 719,054,167 676,572,579 651,820,561 629,679,437 Plan Fiduciary Net Position:

Contributions - Employer 26,738,073 23,992,213 20,887,408 19,279,801 17,336,444 Contributions - Employee 5,451,316 4,643,550 6,252,846 6,253,457 5,841,003 Net Investment Income 32,158,993 (43,054,573) 106,462,271 22,662,797 28,408,000 Benefit Payments (39,618,535) (36,541,549) (33,626,670) (31,532,186) (28,975,301) Plan to Plan Resource Movement - - - - -
Administrative Expense (379,638) (353,568) (467,575) (637,272) (306,672) Other Miscellaneous Income (Expense) - - - - 999
Net Change in Plan Fiduciary Net Position 24,350,209 (51,313,927) 99,508,280 16,026,597 22,304,473 Plan Fiduciary Net Position - Beginning of Year 516,265,720 567,579,647 468,071,367 452,044,770 429,740,297 Plan Fiduciary Net Position - End of Year (b) 540,615,929 516,265,720 567,579,647 468,071,367 452,044,770 Net Pension Liability - Ending (a)-(b) $ 208,286,471 $ 202,788,447 $ 108,992,932 $ 183,749,194 $ 177,634,667 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 72.19% 71.80% 83.89% 71.81% 71.79% Covered Payroll $ 71,879,023 $ 61,614,977 $ 59,925,660 $ 59,948,680 $ 58,650,784 Net Pension Liability as Percentage of
Covered Payroll 289.77% 329.12% 181.88% 306.51% 302.87% 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%.

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. (126)
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 40,531,753 39,079,614 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 21,088,887 51,918,751 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 15,654,944 14,693,333 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:

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%.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

CALPERS MISCELLANEOUS PENSION PLANS

LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information. (127)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Actuarially Determined Contributions $ 27,706,627 $ 26,711,721 $ 23,966,588 $ 20,836,231 $ 19,206,093 Contributions in Relation to the
Actuarially Determined Contributions (27,706,627) (26,711,721) (23,966,588) (20,836,231) (19,206,093) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 77,295,321 $ 71,879,023 $ 61,614,977 $ 59,925,660 $ 59,948,680 Contributions as a Percentage of Covered
Payroll 35.85% 37.16% 38.90% 34.77% 32.04%
Notes to Schedule:

Valuation Date 6/30/2021 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 Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.300% 2.500% 2.500% 2.625%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) 7.25% (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.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

CALPERS MISCELLANEOUS PENSION PLANS (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information. (128)
Fiscal Year Ended June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Actuarially Determined Contributions $ 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.

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. (129)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Total Pension Liability:

Service Cost $ 5,083,581 $ 5,268,330 $ 5,132,860 $ 5,127,183 $ 5,038,115 Interest on Total Pension Liability 22,440,322 21,422,699 20,991,410 20,289,464 19,515,209 Differences Between Expected and Actual
Experience 6,081,287 (4,278,299) 422,522 1,353,894 -
Changes in Assumptions - 11,882,412 - - 1,774,631
Changes in Benefits 132,258 - - - -
Benefit Payments, Including Refunds
of Employee Contributions (18,633,081) (17,495,066) (16,321,634) (15,727,551) (14,518,454) Net Change in Total Pension Liability 15,104,367 16,800,076 10,225,158 11,042,990 11,809,501 Total Pension Liability - Beginning of Year 325,783,244 308,983,168 298,758,010 287,715,020 275,905,519 Total Pension Liability - End of Year (a) 340,887,611 325,783,244 308,983,168 298,758,010 287,715,020 Plan Fiduciary Net Position:

Contributions - Employer 11,557,330 10,513,730 9,754,764 9,073,135 8,168,274 Contributions - Employee 1,920,427 1,684,704 1,720,503 1,840,823 1,606,426 Net Investment Income 13,379,058 (18,111,553) 45,022,492 9,697,393 12,279,660 Benefit Payments (18,633,081) (17,495,066) (16,321,634) (15,727,551) (14,518,454) Plan to Plan Resource Movement - - - - -
Administrative Expense (158,375) (148,839) (198,742) (273,976) (133,404) Other Miscellaneous Income (Expense) - - - - 436
Net Change in Plan Fiduciary Net Position 8,065,359 (23,557,024) 39,977,383 4,609,824 7,402,938 Plan Fiduciary Net Position - Beginning of Year 215,373,122 238,930,146 198,952,763 194,342,939 186,940,001 Plan Fiduciary Net Position - End of Year (b) 223,438,481 215,373,122 238,930,146 198,952,763 194,342,939 Net Pension Liability - Ending (a)-(b) $ 117,449,130 $ 110,410,122 $ 70,053,022 $ 99,805,247 $ 93,372,081 Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 65.55% 66.11% 77.33% 66.59% 67.55% Covered Payroll $ 16,990,529 $ 15,488,312 $ 15,924,804 $ 16,359,278 $ 16,273,075 Net Pension Liability as Percentage of
Covered Payroll 691.26% 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%.

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. (130)
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 18,703,388 17,958,387 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 10,958,567 23,088,415 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 7,279,784 6,100,953 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:

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%.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

CALPERS SAFETY POLICE PENSION PLANS

LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information. (131)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Actuarially Determined Contribution $ 11,701,880 $ 11,554,507 $ 10,508,925 $ 9,753,264 $ 9,081,466 Contributions in Relation to the
Actuarially Determined Contributions (11,701,880) (11,554,507) (10,508,925) (9,753,264) (9,081,466) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 17,260,587 $ 16,990,529 $ 15,488,312 $ 15,924,804 $ 16,359,278 Contributions as a Percentage of Covered Payroll 67.80% 68.01% 67.85% 61.25% 55.51% Notes to Schedule:

Valuation Date 6/30/2021 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 Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.300% 2.500% 2.500% 2.625%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.9% (3) 6.9% (3) 7.00% (3) 7.00% (3) 7.25% (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.

CITY OF SANTA BARBARA

SCHEDULE OF CONTRIBUTIONS

CALPERS SAFETY POLICE PENSION PLANS (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Notes to Required Supplementary Information. (132)
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:

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. (133)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Measurement Period Ended June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Plan’s Proportion of the Net Pension
Liability/(Asset) 1.2240% 1.2672% 1.6843% 1.1714% 1.1737% Plan’s Proportionate Share of the Net Pension
Liability/(Asset) $ 91,493,628 $ 87,075,506 $ 59,108,788 $ 78,043,509 $ 73,267,837 Plan’s Covered Payroll $ 12,711,898 $ 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 719.75% 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 60.62% 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%.

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. (134)
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 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) $ 69,104,402 $ 68,239,700 $ 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:

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%.

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. (135)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Actuarially Determined Contribution $ 9,345,001 $ 8,944,875 $ 8,084,528 $ 7,467,695 $ 6,804,672 Contributions in Relation to the
Actuarially Determined Contributions (9,345,001) (8,944,875) (8,084,528) (7,467,695) (6,804,672) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 13,013,309 $ 12,711,898 $ 11,264,741 $ 11,458,176 $ 11,236,079 Contributions as a Percentage of Covered Payroll 71.81% 70.37% 71.77% 65.17% 60.56% Notes to Schedule:

Valuation Date 6/30/2020 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 Entry Age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.50% 2.50% 2.63%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) 7.25% (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.

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. (136)
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:

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. (137)
Fiscal Year Ended June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Period Ended June 30, 2023 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 $ 2,099,664 $ 2,842,600 $ 2,914,906 $ 1,163,015 $ 1,072,000 $ 1,095,000 $ 1,207,000 Interest on Total OPEB Liability 1,422,132 1,008,996 1,087,405 708,978 769,000 702,000 574,000 Differences Between Expected and Actual
Experience 4,241,401 - 2,377,732 - (973,000) - -
Changes in Assumptions (10,220,197) (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 (1,329,960) (1,288,904) (1,144,612) (1,077,000) (1,113,000) (1,094,000) (1,220,000) Net Change in Total OPEB Liability (3,786,960) (5,776,103) (2,346,606) 27,229,248 241,000 300,000 (454,000) Total OPEB Liability - Beginning of Year 38,738,539 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) $ 34,951,579 $ 38,738,539 $ 44,514,642 $ 46,861,248 $ 19,632,000 $ 19,391,000 $ 19,091,000 Covered Employee Payroll $ 115,931,602 $ 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 30.15% 36.23% 41.91% 44.12% 18.73% 18.63% 19.28% Sick Leave Retiree Benefits
Total OPEB Liability:

Service Cost $ 591,506 $ 700,761 $ 565,386 $ 457,457 $ 435,000 $ 440,000 $ 474,000 Interest on Total OPEB Liability 320,639 209,205 162,185 244,438 277,000 260,000 212,000 Differences Between Expected and Actual
Experience (75,817) - 1,099,518 497,075 (165,000) - -
Changes in Assumptions (392,653) (676,426) (122,511) - 132,000 (105,000) (265,000) Changes in Benefits - - 1,474,847 - - - -
Benefit Payments, Including Refunds
of Employee Contributions (653,320) (850,860) (1,085,312) (819,000) (936,000) (453,000) (628,000) Net Change in Total OPEB Liability (209,645) (617,320) 2,094,113 379,970 (257,000) 142,000 (207,000) Total OPEB Liability - Beginning of Year 8,792,763 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) $ 8,583,118 $ 8,792,763 $ 9,410,083 $ 7,315,970 $ 6,936,000 $ 7,193,000 $ 7,051,000 Covered Employee Payroll $ 115,931,602 $ 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 7.40% 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%.

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

Discount rate was changed from 3.54% to 3.65%.
* Fiscal year 2018 was the first year of implementation and, therefore, only seven years are shown.

CITY OF SANTA BARBARA

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Required Supplementary Information. (138)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes $ 149,365,785 $ 149,451,785 $ 150,978,022 $ 1,526,237 Franchise Fees 6,457,869 6,457,869 6,078,814 (379,055)
Intergovernmental 1,696,000 5,496,516 4,441,456 (1,055,060) Charges for Services 29,174,495 29,304,157 30,166,625 862,468 Use of Money and Property 2,262,358 2,190,663 5,062,763 2,872,100 Fines and Forfeitures 3,034,801 3,034,801 2,393,594 (641,207) Other Revenue 10,887,511 11,381,559 10,933,138 (448,421) Total Revenues 202,878,819 207,317,350 210,054,412 2,737,062

EXPENDITURES
Current:

Mayor and City Council 3,330,720 3,408,796 3,366,038 42,758 City Attorney 5,305,532 6,629,628 4,625,666 2,003,962
City Administration 3,558,053 4,065,298 3,928,057 137,241 Human Resources 2,378,342 2,968,815 2,849,018 119,797
Finance 7,612,377 7,833,220 7,261,921 571,299
Public Safety 91,856,184 97,375,197 90,193,110 7,182,087 Public Works 13,197,783 12,621,650 11,490,638 1,131,012 Community Services 31,121,025 32,877,545 30,743,694 2,133,851 Community Development 9,877,782 10,556,656 14,831,746 (4,275,090) Sustainability and Resilience - 710,853 167,067 543,786 Capital Outlay - - 840,600 (840,600)
Debt Service:

Principal Retirement - - 619,043 (619,043)
Interest and Fiscal Charges - - 57,203 (57,203)
Total Expenditures 168,237,798 179,047,658 170,973,801 8,073,857

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 34,641,021 28,269,692 39,080,611 10,810,919

OTHER FINANCING SOURCES (USES)
Subscription Obligation - - 840,600 840,600
Transfers In 1,073,272 828,016 743,490 (84,526)
Transfers Out (53,291,628) (50,625,425) (49,288,483) 1,336,942 Total Other Financing
Sources (Uses) (52,218,356) (49,797,409) (47,704,393) 2,093,016 NET CHANGE IN FUND BALANCE (17,577,335) (21,527,717) (8,623,782) 12,903,935 Fund Balance - Beginning of Year 55,763,264 55,763,264 55,763,264 - FUND BALANCE - END OF YEAR $ 38,185,929 $ 34,235,547 $ 47,139,482 $ 12,903,935 Budgeted Amounts

CITY OF SANTA BARBARA

BUDGETARY COMPARISON SCHEDULE

AFFORDABLE HOUSING SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Required Supplementary Information. (139)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Use of Money and Property $ 1,194,700 $ 1,194,700 $ 1,688,969 $ 494,269

EXPENDITURES
Current:

Community Development 1,287,811 12,735,862 1,491,894 11,243,968

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (93,111) (11,541,162) 197,075 11,738,237

OTHER FINANCING SOURCES (USES)
Transfers Out - (7,599) (7,599) -
NET CHANGE IN FUND BALANCE (93,111) (11,548,761) 189,476 11,738,237 Fund Balance - Beginning of Year 67,819,178 67,819,178 67,819,178 - FUND BALANCE - END OF YEAR $ 67,726,067 $ 56,270,417 $ 68,008,654 $ 11,738,237 Budgeted Amounts

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2024
(140)
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, 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, as required by the City Charter. 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 and Benefits, Supplies and 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, Canine Unit Fund and Local Housing Trust Fund did not have legally adopted budgets during the current year.

Budgeted amounts reflect the originally adopted budget and the final budget that includes re-appropriated prior year encumbrances as well as any approved revisions. The approval of prior year encumbrance carry forwards into the next fiscal year is authorized by the City Council, and implemented by the City Administrator annually. The original and amended operating budget for the General Fund is shown in the table below.

Originally Adopted Budget $ 221,529,426
Re-appropriated Prior Year Encumbrances 1,236,536
Amendments 6,907,121
Amended Budget $ 229,673,083
Budgeted amendments in the General Fund totaled $8.1 million. $1.2 million was carried forward from Fiscal Year 2023 (FY23) as encumbrances made in that year. The remaining $6.9 million was related to City Council approved FY24 budget amendments.

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2024
(141)
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.

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.

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2024
(142)
NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (CONTINUED)
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 (PMS) 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. Comprehensive City-wide inspections were completed in 2023 and will be reported in the FY2024 Pavement Management Report.

Condition Rating
2004 72
2006 71
2008 71
2010 69
2012 63
2014 64
2016 61
2018 61
2020 62
2022 63
2024 67
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.

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2024
(143)
NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (CONTINUED)
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 67 (“At Risk”) with the detail condition as follows:

Approximate
Percent
Condition PCI Rating of Streets
Excellent/Good 71-100 42.9
At Risk 51-70 31.8
Poor 25-50 21.8
Very Poor/Failed 0-24 3.5
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.

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.

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2024
(144)
NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (CONTINUED)
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 for 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 the amount of 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.

In fiscal year 2024, the City expended $16.7 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 67.

The City estimates that to reach and maintain a PCI rating of 70, approximately $24 million would have needed to be spent in 2024, and an average of $22.5 million would need to be budgeted for the next four years (2025 – 2028). The amount of deferred maintenance would have been reduced to $55.6 million in 2023 and increased to $87 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
2023-2024 15,000,000 16,657,105 67

CITY OF SANTA BARBARA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH
JUNE 30, 2024
(145)
NOTE 2 MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS (CONTINUED)
The City’s ongoing street preservation program was developed with the goal of improving the condition rating of City streets to a score above 70. The City considers a score of 72-78 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 78, when less expensive preventative maintenance treatments will be effective for the majority of the City’s street network.

Although the City is committed to improving the condition of its pavement assets, funding continues to fluctuate based on competing priorities. The fiscal year 2025 adopted budget includes $17.3 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 of reaching and maintaining a 75+ in five years as one of their top five priorities to fund.

After running numerous iterations of 30‐year budget scenarios utilizing the City’s pavement software, it was determined that an initial investment of the program with $25M annually for eight years followed by a reduction to $10M annually provides the best overall return on investment. This recommended scenario requires less overall funding commitment than a steady amount over 30 years and achieves a higher PCI.
(146)
(147)

NONMAJOR GOVERNMENTAL FUNDS
(148)
This page was intentionally left blank.

CITY OF SANTA BARBARA, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(149)
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, 2024
(150)
Special Revenue Funds (Continued)
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.

Local Housing Allocation Fund – To account for city commitments of state of California PLHA funds to support street outreach services to persons experiencing homelessness, and to provide rental housing mediation services to persons at risk of losing their housing due to eviction or other rental disputes.

Capital Project Funds
General Capital Improvements Fund – To account for all capital projects financed by the General Fund.

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.

Utilities Undergrounding District Fund – To account for appropriations in the Utility Undergrounding Fund for the Jimeno Road Underground Utilities Assessment District to fund the design phase of the underground utilities project.

CITY OF SANTA BARBARA

COMBINING BALANCE SHEET

OTHER SPECIAL REVENUE FUNDS
JUNE 30, 2024
(151)
Creek Wildland Permanent Community
Traffic Restoration/Water Fire Local Housing Transportation Development Safety Quality Suppression Allocation Development Block Grant ASSETS
Pooled Cash and Investments $ 16,770 $ 3,699,991 $ 135,982 $ 718 $ 201,630 $ 819,862 Accounts Receivable, Net 20,876 - - - - -
Loans Receivable - - - - - 2,631,558
Lease Receivable - - - - - -
Due from Other Governments - 582,323 - 652,689 - 320,837 Total Assets $ 37,646 $ 4,282,314 $ 135,982 $ 653,407 $ 201,630 $ 3,772,257

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES
Accounts Payable $ 315 $ 178,690 $ 1,348 $ 33,983 $ - $ 476,972 Salaries and Benefits Payable - 52,389 5,215 4,571 - 2,112 Unearned Revenue - - - - - -
Deposits - - - - - -
Due to Other Governments - - - - - 2,631,558
Interfund Payables - - - 415,654 - -
Total Liabilities 315 231,079 6,563 454,208 - 3,110,642

DEFERRED INFLOWS OF

RESOURCES
Leases - - - - - -
Unavailable Revenue - - - 652,689 - -
Total Deferred Inflows
of Resources - - - 652,689 - -

FUND BALANCES (DEFICITS)
Restricted for:

Public Safety - - 129,419 - - -
Public Works 37,331 4,051,235 - - 201,630 -
Community Services - - - - - -
Community Development - - - - - 661,615
Capital Improvements - - - - - -
Committed to:

Capital Improvements - - - - - -
Unassigned - - - (453,490) - -
Total Fund Balances (Deficits) 37,331 4,051,235 129,419 (453,490) 201,630 661,615 Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances (Deficits) $ 37,646 $ 4,282,314 $ 135,982 $ 653,407 $ 201,630 $ 3,772,257 Special Revenue Funds

CITY OF SANTA BARBARA

COMBINING BALANCE SHEET

OTHER SPECIAL REVENUE FUNDS (CONTINUED)
JUNE 30, 2024
(152)
Police - Asset Miscellaneous Street HOME
Forfeiture County Library Measure A Grants Sweeping Program ASSETS
Pooled Cash and Investments $ 673,286 $ 54,486 $ 2,213,324 $ 2,360,969 $ 1,421 $ 600 Accounts Receivable, Net - - - - - -
Loans Receivable - - - - - 10,865,716
Lease Receivable - - - - - -
Due from Other Governments 198 - 415,153 1,176,416 - 1,827,141 Total Assets $ 673,484 $ 54,486 $ 2,628,477 $ 3,537,385 $ 1,421 $ 12,693,457

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES
Accounts Payable $ - $ 25,696 $ 11,935 $ 714,021 $ 644 $ 253,888 Salaries and Benefits Payable 108,228 9,951 52,913 21,684 1,682 2,036 Unearned Revenue - - - 692,189 - -
Deposits 262,258 - - - - -
Due to Other Governments - - - - - 10,865,716
Interfund Payables - - - - 97,898 1,229,025
Total Liabilities 370,486 35,647 64,848 1,427,894 100,224 12,350,665

DEFERRED INFLOWS OF

RESOURCES
Leases - - - - - -
Unavailable Revenue - - - 326,712 - -
Total Deferred Inflows
of Resources - - - 326,712 - -

FUND BALANCES (DEFICITS)
Restricted for:

Public Safety 302,998 - - 218,887 - -
Public Works - - 2,563,629 - - -
Community Services - 18,839 - 1,595,792 - -
Community Development - - - - - 342,792
Capital Improvements - - - - - -
Committed to:

Capital Improvements - - - - - -
Unassigned - - - (31,900) (98,803) -
Total Fund Balances (Deficits) 302,998 18,839 2,563,629 1,782,779 (98,803) 342,792 Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances (Deficits) $ 673,484 $ 54,486 $ 2,628,477 $ 3,537,385 $ 1,421 $ 12,693,457 Special Revenue Funds (Continued)

CITY OF SANTA BARBARA

COMBINING BALANCE SHEET

OTHER SPECIAL REVENUE FUNDS (CONTINUED)
JUNE 30, 2024
(153)
Police Police
FEMA Supplemental Law CAD-RMS Library Canine
Reimbursement Enforcement Streets Support Gift Unit
ASSETS
Pooled Cash and Investments $ 175,881 $ 3,721 $ 758,123 $ 238,559 $ 5,224,501 $ 25,153 Accounts Receivable, Net 757,320 - - - - -
Loans Receivable - - - - - -
Lease Receivable - - 333,311 - - -
Due from Other Governments 123,718 - 986,942 - - -
Total Assets $ 1,056,919 $ 3,721 $ 2,078,376 $ 238,559 $ 5,224,501 $ 25,153

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES
Accounts Payable $ 81,335 $ - $ 52,920 $ 2,166 $ - $ -
Salaries and Benefits Payable - - 199,060 - - -
Unearned Revenue 335,612 - - - - -
Deposits - - - - - -
Due to Other Governments - - - - - -
Interfund Payables 2,428,490 3,705 - - - -
Total Liabilities 2,845,437 3,705 251,980 2,166 - -

DEFERRED INFLOWS OF

RESOURCES
Leases - - 313,593 - - -
Unavailable Revenue 649,939 - - - - -
Total Deferred Inflows
of Resources 649,939 - 313,593 - - -

FUND BALANCES (DEFICITS)
Restricted for:

Public Safety - 16 - 236,393 - -
Public Works 44,098 - 1,512,803 - - -
Community Services - - - - 5,224,501 25,153
Community Development - - - - - -
Capital Improvements - - - - - -
Committed to:

Capital Improvements - - - - - -
Unassigned (2,482,555) - - - - -
Total Fund Balances (Deficits) (2,438,457) 16 1,512,803 236,393 5,224,501 25,153 Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances (Deficits) $ 1,056,919 $ 3,721 $ 2,078,376 $ 238,559 $ 5,224,501 $ 25,153 Special Revenue Funds (Continued)

CITY OF SANTA BARBARA

COMBINING BALANCE SHEET

OTHER SPECIAL REVENUE FUNDS (CONTINUED)
JUNE 30, 2024
(154)
Capital Projects Funds Total
General Streets Creek Utilites Other
Capital Measure A Capital Restoration Undergounding Governmental Improvements Capital Improvements Capital District Funds ASSETS
Pooled Cash and Investments $ 4,369,358 $ 5,168,447 $ 8,702,670 $ 10,436,349 $ 67,183 $ 48,819,097 Accounts Receivable, Net - - 12,667 - - 790,863
Loans Receivable - - - - - 13,497,274
Lease Receivable - - - - - 333,311
Due from Other Governments - - - - - 6,085,417
Total Assets $ 4,369,358 $ 5,168,447 $ 8,715,337 $ 10,436,349 $ 67,183 $ 69,525,962

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

LIABILITIES
Accounts Payable $ 319,473 $ 743,078 $ 654,232 $ 78,199 $ 3,940 $ 3,632,835 Salaries and Benefits Payable - - - - - 459,841
Unearned Revenue - - - - - 1,027,801
Deposits - - - - - 262,258
Due to Other Governments - - - - - 13,497,274
Interfund Payables - - - - - 4,174,772
Total Liabilities 319,473 743,078 654,232 78,199 3,940 23,054,781

DEFERRED INFLOWS OF

RESOURCES
Leases - - - - - 313,593
Unavailable Revenue - - - - - 1,629,340
Total Deferred Inflows
of Resources - - - - - 1,942,933

FUND BALANCES (DEFICITS)
Restricted for:

Public Safety - - - - - 887,713
Public Works - - - 10,358,150 - 18,768,876
Community Services - - - - - 6,864,285
Community Development - - - - - 4,474,520
Capital Improvements - 4,425,369 - - 63,243 4,488,612
Committed to:

Capital Improvements 4,049,885 - 8,061,105 - - 12,110,990 Unassigned - - - - - (3,066,748)
Total Fund Balances (Deficits) 4,049,885 4,425,369 8,061,105 10,358,150 63,243 44,528,248 Total Liabilities, Deferred
Inflows of Resources, and
Fund Balances (Deficits) $ 4,369,358 $ 5,168,447 $ 8,715,337 $ 10,436,349 $ 67,183 $ 69,525,962

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – OTHER SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2024
(155)
Creek Wildland Permanent Community
Traffic Restoration/Water Fire Local Housing Transportation Development Safety Quality Suppression Allocation Development Block Grant

REVENUES
Taxes $ - $ 5,426,927 $ - $ - $ 96,566 $ -
Intergovernmental - - - 704,272 - 1,021,792
Fines and Forfeitures 233,145 300,000 - - - -
Charges for Services - - - - - -
Use of Money and Property - 626,014 73 35 11,432 116
Other - 9,740 315,814 - - 430,165
Total Revenues 233,145 6,362,681 315,887 704,307 107,998 1,452,073

EXPENDITURES
Current:

City Attorney - - - - - -
Finance - - - - - -
Public Safety 13,428 - 316,170 - - -
Public Works - 3,113,605 - - 50 -
Community Services - - - - - -
Community Development - - - 503,533 - 1,548,737
Sustainability and Resilience - - - - - -
Capital Outlay - - - - - -
Debt Service:

Principal Retirement - 7,364 - - - -
Interest and Fiscal Charges - 37,787 - - - -
Total Expenditures 13,428 3,158,756 316,170 503,533 50 1,548,737

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 219,717 3,203,925 (283) 200,774 107,948 (96,664)

OTHER FINANCING USES
Transfers in - - - - - -
Transfers out (199,156) (2,717,785) (1,360) (1,575) (199,826) (1,077) Total Other Financing Uses (199,156) (2,717,785) (1,360) (1,575) (199,826) (1,077) NET CHANGE IN FUND BALANCES 20,561 486,140 (1,643) 199,199 (91,878) (97,741) Fund Balances (Deficits) -
Beginning of Year 16,770 3,565,095 131,062 (652,689) 293,508 759,356 Change Within Financial Reporting Entity
(Nonmajor to Major Fund) - - - - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated 16,770 3,565,095 131,062 (652,689) 293,508 759,356

FUND BALANCES (DEFICITS) -
END OF YEAR $ 37,331 $ 4,051,235 $ 129,419 $ (453,490) $ 201,630 $ 661,615 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, 2024
(156)
Police - Asset Miscellaneous Street HOME
Forfeiture County Library Measure A Grants Sweeping Program

REVENUES
Taxes $ - $ - $ 5,046,111 $ - $ - $ -
Intergovernmental 50,905 378,023 - 3,094,210 - 1,827,142 Fines and Forfeitures 4,207 1,661 - - - -
Charges for Services 90,588 - - 13,659 - -
Use of Money and Property 13,353 945 300,285 576 70 30
Other - 125,655 - 1,833,735 - 342,770
Total Revenues 159,053 506,284 5,346,396 4,942,180 70 2,169,942

EXPENDITURES
Current:

City Attorney - - - - - -
Finance - - - - - -
Public Safety 237,405 - - 604,973 - -
Public Works - - 2,713,058 - 385,138 -
Community Services - 495,123 - 1,302,124 - -
Community Development - - - 83,383 - 1,826,547
Sustainability and Resilience - - - 723,828 - -
Capital Outlay - - - 1,901,256 - -
Debt Service:

Principal Retirement - - - - - -
Interest and Fiscal Charges - - - - - -
Total Expenditures 237,405 495,123 2,713,058 4,615,564 385,138 1,826,547

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (78,352) 11,161 2,633,338 326,616 (385,068) 343,395

OTHER FINANCING USES
Transfers in - - - 63,699 287,712 -
Transfers out (3,504) (1,584) (1,873,191) - (1,447) (603) Total Other Financing Uses (3,504) (1,584) (1,873,191) 63,699 286,265 (603) NET CHANGE IN FUND BALANCES (81,856) 9,577 760,147 390,315 (98,803) 342,792 Fund Balances (Deficits) -
Beginning of Year 384,854 9,262 1,803,482 1,392,464 - - Change Within Financial Reporting Entity
(Nonmajor to Major Fund) - - - - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated 384,854 9,262 1,803,482 1,392,464 - -

FUND BALANCES (DEFICITS) -
END OF YEAR $ 302,998 $ 18,839 $ 2,563,629 $ 1,782,779 $ (98,803) $ 342,792 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, 2024
(157)
Police Police Local
FEMA Supplemental Law CAD-RMS Library Canine Housing
Reimbursement Enforcement Streets Support Gift Unit Trust Fund

REVENUES
Taxes $ - $ - $ 7,836,307 $ - $ - $ - $ -
Intergovernmental 737,456 248,037 4,586,786 88,138 - 1,444 - Fines and Forfeitures - - - - - - -
Charges for Services - - 319,260 - - - -
Use of Money and Property - (2,154) 74,030 - - - 86,565 Other - - 180,459 - 699,937 1,040 -
Total Revenues 737,456 245,883 12,996,842 88,138 699,937 2,484 86,565

EXPENDITURES
Current:

City Attorney 1,003 - - - 199,552 - -
Finance 151,813 - - - - 11,167 -
Public Safety 334 238,129 - 64,549 - - -
Public Works 22,553 - 11,121,607 - - - -
Community Services 103,952 - - - - - -
Community Development - - - - - - -
Sustainability and Resilience - - - - - - -
Capital Outlay - - - - - - -
Debt Service:

Principal Retirement - - - - - - -
Interest and Fiscal Charges - - - - - - -
Total Expenditures 279,655 238,129 11,121,607 64,549 199,552 11,167 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 457,801 7,754 1,875,235 23,589 500,385 (8,683) 86,565

OTHER FINANCING USES
Transfers in 250,668 - 1,165,850 - - - 3,383,548
Transfers out (45,215) (7,738) (3,216,576) (180,122) - (4,525) - Total Other Financing Uses 205,453 (7,738) (2,050,726) (180,122) - (4,525) 3,383,548 NET CHANGE IN FUND BALANCES 663,254 16 (175,491) (156,533) 500,385 (13,208) 3,470,113 Fund Balances (Deficits) -
Beginning of Year (3,101,711) - 1,688,294 392,926 4,724,116 38,361 - Change Within Financial Reporting Entity
(Nonmajor to Major Fund) - - - - - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated (3,101,711) - 1,688,294 392,926 4,724,116 38,361 -

FUND BALANCES (DEFICITS) -
END OF YEAR $ (2,438,457) $ 16 $ 1,512,803 $ 236,393 $5,224,501 $ 25,153 $3,470,113 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, 2024
(158)
Total
General Streets Creek Utilites Other
Capital Measure C Measure A Capital Restoration Undergounding Governmental Improvements Capital Capital Improvements Capital District Funds

REVENUES
Taxes $ - $ - $ - $ - $ - $ - $ 18,405,911
Intergovernmental 9,399 - - - - - 12,747,604
Fines and Forfeitures - - - - - - 539,013
Charges for Services - - - - - - 423,507
Use of Money and Property - - - - - - 1,111,370
Other - - - - - - 3,939,315
Total Revenues 9,399 - - - - - 37,166,720

EXPENDITURES
Current:

City Attorney - - - - - - 200,555
Finance - - - - - - 162,980
Public Safety - - - - - - 1,474,988
Public Works 21,798 - - - - - 17,377,809
Community Services - - - - - - 1,901,199
Community Development - - - - - - 3,962,200
Sustainability and Resilience - - - - - - 723,828
Capital Outlay 3,988,938 - 1,636,855 832,640 402,457 69,638 8,831,784 Debt Service:

Principal Retirement - - - - - - 7,364
Interest and Fiscal Charges - - - - - - 37,787
Total Expenditures 4,010,736 - 1,636,855 832,640 402,457 69,638 34,680,494

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (4,001,337) - (1,636,855) (832,640) (402,457) (69,638) 2,486,226

OTHER FINANCING USES
Transfers in 4,966,966 - 1,903,004 4,321,421 2,700,000 132,881 19,175,749 Transfers out (29,060) - (602,291) - (1,086,647) - (10,173,282) Total Other Financing Uses 4,937,906 - 1,300,713 4,321,421 1,613,353 132,881 9,002,467 NET CHANGE IN FUND BALANCES 936,569 - (336,142) 3,488,781 1,210,896 63,243 11,488,693 Fund Balances (Deficits) -
Beginning of Year 3,113,316 38,982,620 4,761,511 4,572,324 9,147,254 - 72,022,175 Change Within Financial Reporting Entity
(Nonmajor to Major Fund) - (38,982,620) - - - - (38,982,620) Fund Balances (Deficits) - Beginning of Year,
as Restated 3,113,316 - 4,761,511 4,572,324 9,147,254 - 33,039,555

FUND BALANCES (DEFICITS) -
END OF YEAR $ 4,049,885 $ - $ 4,425,369 $ 8,061,105 $ 10,358,150 $ 63,243 $ 44,528,248 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, 2024
(159)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Fines and Forfeitures $ 245,000 $ 245,000 $ 233,145 $ (11,855)

EXPENDITURES
Current:

Public Safety 15,000 15,000 13,428 1,572

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 230,000 230,000 219,717 (10,283)

OTHER FINANCING USES
Transfers Out (230,000) (230,000) (199,156) 30,844
NET CHANGE IN FUND BALANCE - - 20,561 20,561
Fund Balance - Beginning of Year 16,770 16,770 16,770 - FUND BALANCE - END OF YEAR $ 16,770 $ 16,770 $ 37,331 $ 20,561 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, 2024
(160)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes $ 5,500,157 $ 5,500,157 $ 5,426,927 $ (73,230)
Fines and Forfeitures - 300,000 300,000 -
Use of Money and Property 234,600 234,600 626,014 391,414 Other 12,314 18,814 9,740 (9,074)
Total Revenues 5,747,071 6,053,571 6,362,681 309,110

EXPENDITURES
Current:

Public Works 3,735,356 4,486,033 3,113,605 1,372,428
Debt Service:

Principal Retirement - - 7,364 (7,364)
Interest and Fiscal Charges - - 37,787 (37,787)
Total Expenditures 3,735,356 4,486,033 3,158,756 1,327,277

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,011,715 1,567,538 3,203,925 1,636,387

OTHER FINANCING USES
Transfers Out (2,710,000) (2,717,785) (2,717,785) -
NET CHANGE IN FUND BALANCE (998,285) (1,150,247) 486,140 1,636,387 Fund Balance - Beginning of Year 3,565,095 3,565,095 3,565,095 - FUND BALANCE - END OF YEAR $ 2,566,810 $ 2,414,848 $ 4,051,235 $ 1,636,387 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, 2024
(161)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Use of Money and Property $ - $ - $ 73 $ 73
Other 299,442 299,442 315,814 16,372
Total Revenues 299,442 299,442 315,887 16,445

EXPENDITURES
Current:

Public Safety 325,998 340,002 316,170 23,832

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (26,556) (40,560) (283) 40,277

OTHER FINANCING USES
Transfers Out - 1,360 (1,360) (2,720)
NET CHANGE IN FUND BALANCE (26,556) (39,200) (1,643) 37,557 Fund Balance - Beginning of Year 131,062 131,062 131,062 - FUND BALANCE - END OF YEAR $ 104,506 $ 91,862 $ 129,419 $ 37,557 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

PERMANENT LOCAL HOUSING ALLOCATION
YEAR ENDED JUNE 30, 2024
(162)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental $ 550,000 $ 1,867,749 $ 704,272 $ (1,163,477) Use of Money and Property - - 35 35
Total Revenues 550,000 1,867,749 704,307 (1,163,442)

EXPENDITURES
Current:

Community Development 548,953 1,239,963 503,533 736,430

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,047 627,786 200,774 (427,012)

OTHER FINANCING USES
Transfers Out - 1,360 (1,575) (2,935)
NET CHANGE IN FUND BALANCE 1,047 629,146 199,199 (429,947) Fund Balance (Deficit) - Beginning of Year (652,689) (652,689) (652,689) -

FUND BALANCE (DEFICIT) - END OF
YEAR $ (651,642) $ (23,543) $ (453,490) $ (429,947)
Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

TRANSPORTATION DEVELOPMENT
YEAR ENDED JUNE 30, 2024
(163)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes $ 80,000 $ 84,464 $ 96,566 $ 12,102
Use of Money and Property 3,800 3,800 11,432 7,632
Total Revenues 83,800 88,264 107,998 19,734

EXPENDITURES
Current:

Public Works 83,800 143,211 50 143,161

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (54,947) 107,948 162,895

OTHER FINANCING USES
Transfers Out - (199,826) (199,826) -
NET CHANGE IN FUND BALANCE - (254,773) (91,878) 162,895 Fund Balance - Beginning of Year 293,508 293,508 293,508 - FUND BALANCE - END OF YEAR $ 293,508 $ 38,735 $ 201,630 $ 162,895 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, 2024
(164)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental $ 876,711 $ 1,803,297 $ 1,021,792 $ (781,505) Use of Money and Property - - 116 116
Other 300,000 300,000 430,165 130,165
Total Revenues 1,176,711 2,103,297 1,452,073 (651,224)

EXPENDITURES
Current:

Development Services 1,223,100 2,773,680 1,548,737 1,224,943

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (46,389) (670,383) (96,664) 573,719

OTHER FINANCING USES
Transfers Out - 1,077 (1,077) 2,154
NET CHANGE IN FUND BALANCE (46,389) (669,306) (97,741) 571,565 Fund Balance - Beginning of Year 759,356 759,356 759,356 - FUND BALANCE - END OF YEAR $ 712,967 $ 90,050 $ 661,615 $ 571,565 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, 2024
(165)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental $ 52,000 $ 52,000 $ 50,905 $ (1,095)
Fines and Forfeitures - - 4,207 4,207
Charges for Services 95,000 95,000 90,588 (4,412)
Use of Money and Property - - 13,353 13,353
Total Revenues 147,000 147,000 159,053 12,053

EXPENDITURES
Current:

Public Safety 323,001 365,071 237,405 127,666

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (176,001) (218,071) (78,352) 139,719

OTHER FINANCING USES
Transfers Out - (3,504) (3,504) -
NET CHANGE IN FUND BALANCE (176,001) (221,575) (81,856) 139,719 Fund Balance - Beginning of Year 384,854 384,854 384,854 - FUND BALANCE - END OF YEAR $ 208,853 $ 163,279 $ 302,998 $ 139,719 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

COUNTY LIBRARY
YEAR ENDED JUNE 30, 2024
(166)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental $ 93,908 $ 363,925 $ 378,023 $ 14,098 Fines and Forfeitures 1,550 1,550 1,661 111
Use of Money and Property - - 945 945
Other 127,000 127,000 125,655 (1,345)
Total Revenues 222,458 492,475 506,284 13,809

EXPENDITURES
Current:

Community Services 491,966 495,249 495,123 126

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (269,508) (2,774) 11,161 13,935

OTHER FINANCING USES
Transfers Out - (1,584) (1,584) -
NET CHANGE IN FUND BALANCE (269,508) (4,358) 9,577 13,935 Fund Balance - Beginning of Year 9,262 9,262 9,262 -
FUND BALANCE - END OF YEAR $ (260,246) $ 4,904 $ 18,839 $ 13,935 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

MEASURE A
YEAR ENDED JUNE 30, 2024
(167)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes $ 5,217,279 $ 5,217,279 $ 5,046,111 $ (171,168)
Use of Money and Property 81,300 81,300 300,285 218,985 Total Revenues 5,298,579 5,298,579 5,346,396 47,817

EXPENDITURES
Current:

Public Works 3,216,133 3,173,478 2,713,058 460,420

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,082,446 2,125,101 2,633,338 508,237

OTHER FINANCING USES
Transfers Out (2,540,600) (1,873,191) (1,873,191) -
NET CHANGE IN FUND BALANCE (458,154) 251,910 760,147 508,237 Fund Balance - Beginning of Year 1,803,482 1,803,482 1,803,482 - FUND BALANCE - END OF YEAR $ 1,345,328 $ 2,055,392 $ 2,563,629 $ 508,237 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

MISCELLANEOUS GRANTS
YEAR ENDED JUNE 30, 2024
(168)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental $ - $ 14,101,226 $ 3,094,210 $ (11,007,016) Charges for Services 15,500 17,071 13,659 (3,412)
Use of Money and Property - - 576 576
Other 244,361 2,303,484 1,833,735 (469,749)
Total Revenues 259,861 16,421,781 4,942,180 (11,479,601)

EXPENDITURES
Current:

Public Safety 10,000 2,261,436 604,973 1,656,463
Development Services - 1,745,029 - 1,745,029
Community Services 555,361 4,946,844 1,302,124 3,644,720 Public Works - - 83,383 (83,383)
Sustainability and Resilience - 5,431,512 723,828 4,707,684 Capital Outlay - 3,437,644 1,901,256 1,536,388
Total Expenditures 565,361 17,822,465 4,615,564 13,206,901

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (305,500) (1,400,684) 326,616 1,727,300

OTHER FINANCING USES
Transfers In - 595,033 63,699 (531,334)
NET CHANGE IN FUND BALANCE (305,500) (805,651) 390,315 1,195,966 Fund Balance - Beginning of Year 1,392,464 1,392,464 1,392,464 - FUND BALANCE - END OF YEAR $ 1,086,964 $ 586,813 $ 1,782,779 $ 1,195,966 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

STREET SWEEPING
YEAR ENDED JUNE 30, 2024
(169)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Fines and Forfeitures $ 714,000 $ - $ - $ -
Use of Money and Property - - 70 70
Total Revenues 714,000 - 70 70

EXPENDITURES
Current:

Public Works 903,133 506,118 385,138 120,980

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (189,133) (506,118) (385,068) 121,050

OTHER FINANCING USES
Transfers In 493,375 287,712 287,712 -
Transfers Out (401,636) (1,447) (1,447) -
Total Other Financing Uses 91,739 286,265 286,265 -
NET CHANGE IN FUND BALANCE (97,394) (219,853) (98,803) 121,050 Fund Balance - Beginning of Year - - - -
FUND BALANCE (DEFICIT) - END OF YEAR $ (97,394) $ (219,853) $ (98,803) $ 121,050 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

HOME PROGRAM
YEAR ENDED JUNE 30, 2024
(170)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental $ 2,375,466 $ 3,988,906 $ 1,827,142 $ (2,161,764) Use of Money and Property - - 30 30
Other 150,000 136,340 342,770 206,430
Total Revenues 2,525,466 4,125,246 2,169,942 (1,955,304)

EXPENDITURES
Current:

Development Services 2,528,817 3,834,075 1,826,547 2,007,528

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (3,351) 291,171 343,395 52,224

OTHER FINANCING USES
Transfers Out - (603) (603) -
NET CHANGE IN FUND BALANCE (3,351) 290,568 342,792 52,224 Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ (3,351) $ 290,568 $ 342,792 $ 52,224 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, 2024
(171)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental $ 218,104 $ 218,104 $ 248,037 $ 29,933 Use of Money and Property - - (2,154) (2,154)
Total Revenues 218,104 218,104 245,883 27,779

EXPENDITURES
Current:

Public Safety 483,196 475,458 238,129 237,329

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (265,092) (257,354) 7,754 265,108

OTHER FINANCING USES
Transfers Out - (7,738) (7,738) -
NET CHANGE IN FUND BALANCE (265,092) (265,092) 16 265,108 Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ (265,092) $ (265,092) $ 16 $ 265,108 Budgeted Amounts

CITY OF SANTA BARBARA

SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL

STREETS
YEAR ENDED JUNE 30, 2024
(172)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes $ 7,375,415 $ 7,375,415 $ 7,836,307 $ 460,892
Intergovernmental 4,426,151 4,426,151 4,586,786 160,635 Charges for Services 254,694 254,694 319,260 64,566
Use of Money and Property 36,968 36,968 74,030 37,062
Other 32,500 32,500 180,459 147,959
Total Revenues 12,125,728 12,125,728 12,996,842 871,114

EXPENDITURES
Current:

Public Works 11,270,259 11,485,508 11,121,607 363,901

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 855,469 640,220 1,875,235 507,213

OTHER FINANCING USES
Transfers In 1,105,984 1,165,850 1,165,850 -
Transfers Out (2,486,874) (3,216,576) (3,216,576) -
Total Other Financing Uses (1,380,890) (2,050,726) (2,050,726) - NET CHANGE IN FUND BALANCE (525,421) (1,410,506) (175,491) 507,213 Fund Balance - Beginning of Year 1,688,294 1,688,294 1,688,294 - FUND BALANCE - END OF YEAR $ 1,162,873 $ 277,788 $ 1,512,803 $ 507,213 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, 2024
(173)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental $ 88,137 $ 88,137 $ 88,138 $ 1

EXPENDITURES
Current:

Public Safety 88,228 111,043 64,549 46,494

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (91) (22,906) 23,589 46,495

OTHER FINANCING USES
Transfers Out - (180,122) (180,122) -
NET CHANGE IN FUND BALANCE (91) (203,028) (156,533) 46,495 Fund Balance - Beginning of Year 392,926 392,926 392,926 - FUND BALANCE - END OF YEAR $ 392,835 $ 189,898 $ 236,393 $ 46,495 Budgeted Amounts
(174)

NONMAJOR PROPRIETARY FUNDS
(175)
This page was intentionally left blank.

CITY OF SANTA BARBARA, CALIFORNIA

NONMAJOR PROPRIETARY FUNDS
JUNE 30, 2024
(176)
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, 2024
(177)
Downtown Golf
Parking Course Total
ASSETS
Current Assets:

Pooled Cash and Investments $ 4,468,819 $ 4,824,384 $ 9,293,203 Receivables:

Accounts 188,428 7,401 195,829
Leases 152,419 141,443 293,862
Deposits - 225,000 225,000
Inventories - 101,374 101,374
Total Current Assets 4,809,666 5,299,602 10,109,268
Noncurrent Assets:

Leases, Noncurrent 438,605 146,474 585,079
Capital Assets:

Nondepreciable/Amortizable 10,641,593 342,302 10,983,895 Depreciable/Amortizable, Net 22,711,331 2,121,806 24,833,137 Total Noncurrent Assets 33,791,529 2,610,582 36,402,111 Total Assets 38,601,195 7,910,184 46,511,379

DEFERRED OUTFLOWS OF RESOURCES
Pension Related 1,526,404 53,785 1,580,189

LIABILITIES
Current Liabilities:

Accounts Payable 172,031 376,452 548,483
Salaries and Benefits Payable 209,704 3,981 213,685
Unearned Revenue - 185,805 185,805
Deposits 20,623 30,692 51,315
Lease Payable - 37,528 37,528
Compensated Absences Payable 300,165 - 300,165
Total Current Liabilities 702,523 634,458 1,336,981
Noncurrent Liabilities:

Lease Payable, Noncurrent - 4,028 4,028
Compensated Absences Payable 33,351 - 33,351
Net Pension Liability 6,001,808 1,833,500 7,835,308
Total Noncurrent Liabilities 6,035,159 1,837,528 7,872,687 Total Liabilities 6,737,682 2,471,986 9,209,668

DEFERRED INFLOWS OF RESOURCES
Pension Related 7,461 263 7,724
Lease Related 541,386 267,328 808,714
Total Deferred Inflows of Resources 548,847 267,591 816,438

NET POSITION
Net Investment in Capital Assets 33,334,968 2,464,108 35,799,076 Unrestricted (493,898) 2,760,284 2,266,386
Total Net Position $ 32,841,070 $ 5,224,392 $ 38,065,462

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2024
(178)
Downtown Golf
Parking Course Total

OPERATING REVENUES
Service Charges $ 9,055,616 $ 4,233,855 $ 13,289,471
Other Revenues 53,009 75,182 128,191
Total Operating Revenues 9,108,625 4,309,037 13,417,662

OPERATING EXPENSES
Salaries, Wages, and Benefits 5,764,282 115,376 5,879,658 Material, Supplies, and Services 5,494,970 3,217,366 8,712,336 Depreciation/Amortization 1,187,605 251,253 1,438,858
Total Operating Expenses 12,446,857 3,583,995 16,030,852 OPERATING INCOME (LOSS) (3,338,232) 725,042 (2,613,190)

NONOPERATING REVENUES (EXPENSES)
Investment Income (Loss) 238,976 207,252 446,228
Leases and Rents 379,239 267,968 647,207
Interest Expense - (2,603) (2,603)
Total Nonoperating Revenues (Expenses) 618,215 472,617 1,090,832 INCOME (LOSS) BEFORE TRANSFERS (2,720,017) 1,197,659 (1,522,358)

TRANSFERS
Transfers In 902,899 - 902,899
Transfers Out (33,809) (1,085) (34,894)
Total Transfers 869,090 (1,085) 868,005
CHANGES IN NET POSITION (1,850,927) 1,196,574 (654,353) Total Net Position - Beginning of Year 34,691,997 4,027,818 38,719,815 TOTAL NET POSITION - END OF YEAR $ 32,841,070 $ 5,224,392 $ 38,065,462

CITY OF SANTA BARBARA

COMBINING STATEMENT CASH FLOWS

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2024
(179)
Downtown Golf
Parking Course Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 9,025,808 $ 4,268,954 $ 13,294,762 Payments to Suppliers of Goods or Services (5,617,207) (3,289,634) (8,906,841) Payments to Employees (5,381,511) (111,959) (5,493,470) Receipts from Others 53,009 75,182 128,191
Net Cash Provided (Used) by
Operating Activities (1,919,901) 942,543 (977,358)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Received from Other Funds 902,899 - 902,899
Cash Paid to Other Funds (33,809) (1,085) (34,894)
Net Cash Provided (Used) by
Noncapital Financing Activities 869,090 (1,085) 868,005

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition of Capital Assets (335,397) (68,509) (403,906) Lease and Rental Income 379,239 267,968 647,207
Interest Paid - (2,603) (2,603)
Net Cash Provided by Capital and
Related Financing Activities 43,842 196,856 240,698

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 238,976 207,252 446,228

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (767,993) 1,345,566 577,573
Cash and Cash Equivalents - Beginning of Year 5,236,812 3,478,818 8,715,630 CASH AND CASH EQUIVALENTS - END OF YEAR $ 4,468,819 $ 4,824,384 $ 9,293,203

CITY OF SANTA BARBARA

COMBINING STATEMENT CASH FLOWS (CONTINUED)

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2024
(180)
Downtown Golf
Parking Course Total

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:

Operating Income (Loss) $ (3,338,232) $ 725,042 $ (2,613,190) Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization 1,187,605 251,253 1,438,858 Accounts Receivable (50,597) 10,034 (40,563)
Lease Receivable 372,174 136,585 508,759
Inventory - 29,899 29,899
Deferred Outflows - Pension Related 165,920 (2,286) 163,634 Accounts Payable (122,237) (30,543) (152,780)
Salaries and Benefits Payable 44,185 1,241 45,426
Deposits Payable 17,173 8,226 25,399
Lease Payable - (71,624) (71,624)
Compensated Absences Payable 48,414 - 48,414
Unearned Revenue - 13,917 13,917
Net Pension Liability 134,354 4,734 139,088
Deferred Inflows - Lease Related (368,558) (133,663) (502,221) Deferred Inflows - Pension Related (10,102) (272) (10,374) Total Adjustments 1,418,331 217,501 1,635,832
Net Cash Provided (Used) by
Operating Activities $ (1,919,901) $ 942,543 $ (977,358)

SUPPLEMENTAL DISCLOSURES OF NONCASH

FINANCING AND INVESTING ACTIVITIES
Capital Assets in Accounts Payable $ 600 $ - $ 600
Change in Fair Value $ 78,671 $ 85,739 $ 164,410
(181)
(182)

INTERNAL SERVICE FUNDS
(183)
This page was intentionally left blank.

CITY OF SANTA BARBARA, CALIFORNIA

INTERNAL SERVICE FUNDS
JUNE 30, 2024
(184)
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, 2024
(185)
Intra-City Postemployment Information Vehicle Energy
Service Self-Insurance Benefits Systems Capital Management Total ASSETS
Current Assets:

Pooled Cash and Investments $2,524,921 $ 9,800,838 $ 1,693,493 $ 2,180,992 $ 24,984,402 $ 1,274,878 $ 42,459,524 Accounts Receivable, Net 668 108,570 - - 29,462 11,010 149,710 Prepaids Assets and Deposits 454,173 1,879,350 - - 129,123 - 2,462,646 Total Current Assets 2,979,762 11,788,758 1,693,493 2,180,992 25,142,987 1,285,888 45,071,880 Noncurrent Assets:

Advance to Other Funds - - - - 884,634 - 884,634
Capital Assets:

Nondepreciable/Amortizable - - - - 594,132 - 594,132
Depreciable/Amortizable, Net 4,932,243 86,749 - 2,841,013 11,897,428 533,185 20,290,618 Total Capital Assets, Net 4,932,243 86,749 - 2,841,013 12,491,560 533,185 21,769,384 Total Noncurrent Assets 4,932,243 86,749 - 2,841,013 13,376,194 533,185 21,769,384 Total Assets 7,912,005 11,875,507 1,693,493 5,022,005 38,519,181 1,819,073 66,841,264

DEFERRED OUTFLOWS OF

RESOURCES
Pension Related 2,012,882 446,247 - 2,063,652 848,048 370,397 5,741,226 OPEB Related - - 13,507,659 - - - 13,507,659
Total Deferred Outflows
of Resources 2,012,882 446,247 13,507,659 2,063,652 848,048 370,397 19,248,885

LIABILITIES
Current Liabilities:

Accounts Payable 176,596 331,812 - 69,279 88,082 181,156 846,925 Salaries and Benefits Payable 158,969 35,408 216,570 155,277 65,429 30,737 662,390 Subscription Payable - 21,381 - 658,413 - - 679,794
Lease Payable - - - - - 6,839 6,839
Current Portion Long-Term Debt - - - - 543,217 - 543,217 Compensated Absences Payable 234,137 66,586 - 262,236 108,536 45,436 716,931 Claims Payable - 4,600,000 - - - - 4,600,000
Total OPEB Liability, Due in
One Year - - 1,991,632 - - - 1,991,632
Total Current Liabilities 569,702 5,055,187 2,208,202 1,145,205 805,264 264,168 10,047,728 Noncurrent Liabilities:

Subscriptions Payable, Net of
Current Portion - 63,629 - 561,566 - - 625,195
Lease Payable, Net of Current
Portion - - - - - 561,049 561,049
Compensated Absences Payable 26,015 7,397 - 29,137 12,060 5,048 79,657 Long-Term Debt, Net of Current
Portion - - - - 2,201,166 - 2,201,166
Claims Payable - 16,880,155 - - - - 16,880,155
Net Pension Liability 8,600,873 1,318,581 - 4,891,175 3,360,358 1,136,750 19,307,737 Total Other Postemployment
Benefit Liability - - 41,543,065 - - - 41,543,065
Total Noncurrent Liabilities 8,626,888 18,269,762 41,543,065 5,481,878 5,573,584 1,702,847 81,198,024 Total Liabilities 9,196,590 23,324,949 43,751,267 6,627,083 6,378,848 1,967,015 91,245,752

DEFERRED INFLOWS OF

RESOURCES
Pension Related 9,838 2,181 - 10,086 4,145 1,810 28,060 OPEB Related - - 22,255,212 - - - 22,255,212
Total Deferred Inflows
of Resources 9,838 2,181 22,255,212 10,086 4,145 1,810 22,283,272

NET POSITION
Net Investment In Capital Assets 4,932,243 86,749 - 2,841,013 9,747,177 533,185 18,140,367 Unrestricted (4,213,784) (11,092,125) (50,805,327) (2,392,525) 23,237,059 (312,540) (45,579,242) Total Net Position $ 718,459 $ (11,005,376) $ (50,805,327) $ 448,488 $ 32,984,236 $ 220,645 $ (27,438,875)

CITY OF SANTA BARBARA

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(186)
Intra-City Postemployment Information Vehicle Energy
Service Self-Insurance Benefits Systems Capital Management Total

OPERATING REVENUES
Service Charges $ 7,223,523 $ 17,582,659 $ 3,429,308 $ 5,976,836 $ 8,275,756 $ 2,993,049 $ 45,481,131 Other Revenues 579,992 322,908 - 202,662 948,606 52,265 2,106,433 Total Operating Revenues 7,803,515 17,905,567 3,429,308 6,179,498 9,224,362 3,045,314 47,587,564

OPERATING EXPENSES
Salaries, Wages, and Benefits 4,883,091 969,503 3,646,720 3,946,817 1,985,400 810,472 16,242,003 Materials, Supplies, and Services 2,960,419 15,902,844 - 2,273,810 2,135,242 2,135,639 25,407,954 Depreciation/Amortization 234,728 25,710 - 1,400,492 1,938,560 28,821 3,628,311 Total Operating Expenses 8,078,238 16,898,057 3,646,720 7,621,119 6,059,202 2,974,932 45,278,268 OPERATING INCOME (LOSS) (274,723) 1,007,510 (217,412) (1,441,621) 3,165,160 70,382 2,309,296

NONOPERATING REVENUES
Interest Income 2,572 310,534 - 1,711 965,271 305 1,280,393 Interest Expense - (1,910) - (48,446) (75,744) (26,991) (153,091) Total Nonoperating
Revenues 2,572 308,624 - (46,735) 889,527 (26,686) 1,127,302

INCOME (LOSS) BEFORE
TRANSFERS (272,151) 1,316,134 (217,412) (1,488,356) 4,054,687 43,696 3,436,598

TRANSFERS
Transfers In 29,060 75,825 2,342,997 953,303 834,120 - 4,235,305 Transfers Out (94,567) (8,746) (6,506) (39,278) (19,674) (9,169) (177,940) Total Transfers (65,507) 67,079 2,336,491 914,025 814,446 (9,169) 4,057,365 CHANGES IN NET POSITION (337,658) 1,383,213 2,119,079 (574,331) 4,869,133 34,527 7,493,963 Total Net Position (Deficit) -
Beginning of Year 1,056,117 (12,388,589) (52,924,406) 1,022,819 28,115,103 186,118 (34,932,838)

TOTAL NET POSITION
(DEFICIT) - END OF YEAR $ 718,459 $ (11,005,376) $ (50,805,327) $ 448,488 $ 32,984,236 $ 220,645 $ (27,438,875)

CITY OF SANTA BARBARA

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(187)
Intra-City Postemployment Information Vehicle Energy
Service Self-Insurance Benefits Systems Capital Management Total

CASH FLOWS FROM

OPERATING ACTIVITIES
Receipts from Customers and
Users $ 7,223,843 $ 17,694,123 $ 3,429,308 $ 5,976,836 $ 8,265,818 $ 2,997,496 $ 45,587,424 Payments to Suppliers of Goods
or Services (2,984,039) (16,264,854) 10,144 (2,863,056) (2,429,441) (2,095,505) (26,626,751) Payments to Employees (4,360,372) (861,830) (2,653,500) (3,945,523) (1,748,757) (759,312) (14,329,294) Receipts from Others 579,992 322,908 - 202,662 948,606 52,265 2,106,433 Net Cash Provided (Used)
by Operating Activities 459,424 890,347 785,952 (629,081) 5,036,226 194,944 6,737,812

CASH FLOWS FROM

NONCAPITAL FINANCING

ACTIVITIES
Cash Transfers In 29,060 75,825 2,342,997 953,303 834,120 - 4,235,305 Cash Transfers Out (94,567) (8,746) (6,506) (39,278) (19,674) (9,169) (177,940) Advance from (to) Other Funds - - (1,428,950) - 715,371 - (713,579) Net Cash Provided (Used)
by Noncapital Financing
Activities (65,507) 67,079 907,541 914,025 1,529,817 (9,169) 3,343,786

CASH FLOWS FROM CAPITAL

AND RELATED FINANCING

ACTIVITIES
Acquisition of Capital Assets, Net - (97,593) - (497,882) (2,609,799) - (3,205,274) Principal Paid on Capital Debt - - - - (530,629) - (530,629) Interest Paid on Capital Debt - (1,910) - (48,446) (75,744) (26,991) (153,091) Net Cash Used by
Capital and Related
Financing Activities - (99,503) - (546,328) (3,216,172) (26,991) (3,888,994)

CASH FLOWS FROM

INVESTING ACTIVITIES
Investment Income (Loss) 2,572 310,534 - 1,711 965,271 305 1,280,393

NET CHANGE IN CASH AND
CASH EQUIVALENTS 396,489 1,168,457 1,693,493 (259,673) 4,315,142 159,089 7,472,997 Cash and Cash Equivalents -
Beginning of Year 2,128,432 8,632,381 - 2,440,665 20,669,260 1,115,789 34,986,527

CASH AND CASH

EQUIVALENTS - END OF
YEAR $ 2,524,921 $ 9,800,838 $ 1,693,493 $ 2,180,992 $ 24,984,402 $ 1,274,878 $ 42,459,524

CITY OF SANTA BARBARA

COMBINING STATEMENT OF CASH FLOWS (CONTINUED)

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(188)
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) $ (274,723) $ 1,007,510 $ (217,412) $ (1,441,621) $ 3,165,160 $ 70,382 $ 2,309,296 Adjustments to Reconcile Operating
Income (Loss) to Net Cash
Provided (Used) by Operating
Activities:

Depreciation and Amortization 234,728 25,710 - 1,400,492 1,938,560 28,821 3,628,311 (Increase) Decrease in Operating
Assets and Deferred Outflows
of Resources:

Accounts Receivable 320 111,464 - - (9,938) 4,447 106,293 Prepaid Assets 53,375 (572,908) 10,144 - 16,496 - (492,893) Deferred Outflows of
Resources - Pension Related 350,887 49,835 - (261,960) 127,728 31,467 297,957 Deferred Outflows of
Resources - OPEB Related - - (2,248,883) - - - (2,248,883) Increase (Decrease) in Operating
Liabilities and Deferred Inflows
of Resources:

Accounts Payable (76,995) (203,121) - (72,250) (310,695) 45,393 (617,668) Salaries and Benefits Payable 40,257 8,616 79,578 47,124 14,672 3,928 194,175 Leases Payable - - - - - (5,259) (5,259)
Subscriptions Payable - 69,864 - (516,996) - - (447,132) Unearned Revenue - - - - - - -
Compensated Absences
Payable (30,907) 12,911 - 43,098 25,579 (14,478) 36,203 Net Pension Liability 177,175 39,278 - 181,643 74,645 32,603 505,344 Total Other Postemployment
Benefit Liability - - (3,996,605) - - - (3,996,605)
Claims and Judgements - 344,155 - - - - 344,155
Deferred Inflows of
Resources - Pension Related (14,693) (2,967) - (8,611) (5,981) (2,360) (34,612) Deferred Inflows of
Resources - OPEB Related - - 7,159,130 - - - 7,159,130
Total Adjustments 734,147 (117,163) 1,003,364 812,540 1,871,066 124,562 4,428,516 Net Cash Provided (Used)
by Operating Activities $ 459,424 $ 890,347 $ 785,952 $ (629,081) $ 5,036,226 $ 194,944 $ 6,737,812

SUPPLEMENTAL DISCLOSURE

OF NONCASH INVESTING

ACTIVITY
Change in Fair Value $ - $ 173,865 $ - $ - $ 395,408 $ - $ 569,273 (189)
(190)

FIDUCIARY FUNDS
(191)
This page was intentionally left blank.

CITY OF SANTA BARBARA, CALIFORNIA

FIDUCIARY FUNDS
JUNE 30, 2024
(192)
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, 2024
(193)
California Law Total
Revolving Enforcement Custodial
Rehab Telecommunications Funds
ASSETS
Current Assets:

Pooled Cash and Investments $ 583,681 $ 4,000 $ 587,681 Accounts Receivable, Net - 62,760 62,760
Loans Receivable 2,052,972 - 2,052,972
Total Assets 2,636,653 66,760 2,703,413

LIABILITIES
Current Liabilities:

Accounts Payable 1,542 - 1,542
Due to the City of Santa Barbara - 66,600 66,600
Total Liabilities 1,542 66,600 68,142

NET POSITION
Restricted for Others 2,635,111 160 2,635,271
Total Net Position $ 2,635,111 $ 160 $ 2,635,271

CITY OF SANTA BARBARA

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2024
(194)
California Law Total
Revolving Enforcement Custodial
Rehab Telecommunications Funds

ADDITIONS
Interest Income $ 50,691 $ 1,367 $ 52,058
Contributions from Members - 147,625 147,625
Total Additions 50,691 148,992 199,683

DEDUCTIONS
Administrative Expenses 45,926 173,256 219,182
Program Payments 32,919 39,258 72,177
Total Deductions 78,845 212,514 291,359
CHANGE IN NET POSITION (28,154) (63,522) (91,676)
Net Position - Beginning of Year 2,663,265 63,682 2,726,947 NET POSITION - END OF YEAR $ 2,635,111 $ 160 $ 2,635,271 (195)
(196)

STATISTICAL SECTION
(197)
This page was intentionally left blank.

CITY OF SANTA BARBARA, CALIFORNIA

STATISTICAL SECTION (UNAUDITED)

CONTENTS
(198)
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
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.

Revenue Capacity
These schedules contain trend information to help the reader assess the City’s most significant local revenue source, the property tax.

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.

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.

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.

Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year. (199)
l

CITY OF SANTA BARBARA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(200)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
Net investment in capital assets $381,554 $427,683 $436,966 $443,975 $465,776 $493,238 $498,799 $518,120 $530,288 $541,873 Restricted 81,979 80,934 65,647 81,702 82,205 87,096 99,056 105,464 110,749 120,534 Unrestricted (190,965) (186,953) (164,523) (189,963) (211,108) (235,289) (235,531) (216,208) (186,638) (187,463) Total governmental activities net position $272,568 $321,664 $338,090 $335,714 $336,873 $345,045 $362,325 $407,377 $454,398 $474,944 Business-type activities
Net investment in capital assets $347,257 $361,076 $365,505 $359,890 $380,202 $384,837 $391,224 $398,278 $416,480 $434,138 Restricted 3,794 11,962 13,546 13,052 9,349 10,457 9,779 5,663 8,434 9,308 Unrestricted 43,114 37,996 57,464 78,131 68,259 97,205 105,630 143,205 142,240 171,803 Total business-type activities net position $394,165 $411,034 $436,515 $451,073 $457,810 $492,499 $506,634 $547,147 $567,153 $615,249 Primary government
Net investment in capital assets $728,811 $788,759 $802,471 $803,865 $845,978 $878,075 $890,023 $916,398 $946,767 $976,011 Restricted 85,773 92,896 79,193 94,754 91,554 97,553 108,835 111,127 119,182 129,842 Unrestricted (147,851) (148,957) (107,059) (111,832) (142,849) (138,084) (129,900) (73,002) (44,398) (15,660) Total primary government net position $666,733 $732,698 $774,605 $786,787 $794,683 $837,544 $868,958 $954,523 $1,021,551 $1,090,193

CITY OF SANTA BARBARA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(201)
Expenses 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Governmental activities:

Administration $17,100 $16,179 $16,612 $20,045 $19,586 $20,956 $19,964 $19,177 $20,966 $23,803 Public safety 65,260 63,451 66,678 82,485 79,814 90,295 88,435 90,023 65,582 100,520 Public works 29,672 26,053 28,565 34,583 44,753 40,103 46,787 37,767 51,964 58,408 Community services 25,377 26,454 27,635 30,500 25,777 25,294 27,392 24,973 31,117 34,779 Community development 12,077 16,933 17,442 16,083 18,753 18,182 19,434 15,459 19,420 22,673 Sustainability and Resilience - - - - - - 38 110 42 972 Interest on long-term debt 56 42 66 - - - - - - -
Total governmental activities expenses 149,542 149,112 156,998 183,696 188,683 194,830 202,050 187,509 189,091 241,154 Business-type activities:

Water 40,409 35,859 37,291 45,239 51,504 50,122 52,502 50,913 56,917 58,759 Wastewater 17,242 17,376 18,299 20,542 20,828 22,794 23,906 22,307 25,530 27,454 Airport 21,616 21,361 22,057 24,507 26,139 26,745 26,066 27,530 33,462 35,795 Waterfront 12,179 12,639 12,975 15,010 15,861 15,710 15,418 14,387 17,258 18,287 Solid Waste 20,353 20,498 20,837 23,948 24,325 27,146 31,245 30,333 34,838 37,866 Parking 8,325 7,941 8,481 10,104 10,277 9,758 9,138 9,173 11,236 12,350 Golf course 2,018 2,022 2,591 2,642 2,625 2,358 3,446 3,401 3,358 3,561 Clean Energy - - - - - - 132 16,021 37,598 33,475
Total business-type activities expenses 122,142 117,696 122,531 141,992 151,559 154,633 161,853 174,065 220,197 227,548 Total primary government expenses $271,684 $266,808 $279,529 $325,688 $340,242 $349,463 $363,903 $361,574 $409,288 $468,702 Program Revenues
Governmental activities:

Charges for services:

Administration $4,851 $4,479 $4,143 $3,826 $2,043 $2,273 $1,757 $3,659 $2,689 $1,434 Public safety 10,794 10,650 11,758 12,141 5,838 5,464 5,025 5,965 5,464 6,424 Public works 8,945 9,161 9,586 9,333 7,282 6,615 7,534 7,558 8,542 9,959 Community services 10,869 11,909 12,400 12,629 6,416 5,471 5,201 7,397 7,309 7,864 Community development 5,347 6,540 6,081 6,916 5,529 5,091 5,717 7,441 7,871 8,444 Operating grants and contributions 6,303 8,487 7,882 10,462 20,162 19,508 33,100 22,360 19,778 24,413 Capital grants and contributions 24,137 26,181 16,966 16,301 24,112 23,446 21,274 22,688 18,803 22,974 Total governmental activities program revenues 71,246 77,407 68,816 71,608 71,382 67,868 79,608 77,068 70,456 81,512 Business-type activities:

Charges for services:

Water 34,573 45,097 51,641 56,117 54,622 60,133 65,633 69,058 67,335 69,514 Wastewater 17,742 18,632 20,142 20,738 21,402 22,990 24,474 25,807 27,438 28,722 Airport 17,902 17,988 19,175 20,650 23,205 23,275 19,596 25,920 28,681 32,012 Waterfront 14,982 14,658 15,075 14,815 14,639 14,215 15,644 17,241 18,158 19,582 Solid Waste 20,827 21,059 20,953 22,116 24,191 27,455 29,817 34,294 35,828 38,360 Parking 8,432 8,457 8,514 8,285 8,473 6,383 4,355 6,082 9,131 9,488 Golf course 1,950 1,950 2,531 2,607 2,629 2,681 4,079 4,229 4,178 4,577 Clean Energy - - - - - - 100 14,718 43,408 54,137
Operating grants and contributions - 24 23 23 23 23 8,742 17,913 2,116 8,674 Capital grants and contributions 3,289 5,582 496 8,640 2,220 46 3,565 292 126 15 Total business-type activities program revenues 119,697 133,447 138,550 153,991 151,404 157,201 176,005 215,554 236,399 265,081 Total primary government program revenues $190,943 $210,854 $207,366 $225,599 $222,786 $225,069 $255,613 $292,622 $306,855 $346,593 Fiscal Years

CITY OF SANTA BARBARA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(202)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Net (expense)/revenue
Governmental activities ($78,296) ($71,705) ($88,182) ($112,088) ($117,301) ($126,962) ($122,442) ($110,441) ($118,635) ($159,642) Business-type activities (2,445) 15,751 16,019 11,999 (155) 2,568 14,152 41,489 16,202 37,533 Total primary government net expense ($80,741) ($55,954) ($72,163) ($100,089) ($117,456) ($124,394) ($108,290) ($68,952) ($102,433) ($122,109) General Revenues and Other
Changes in Net Position
Governmental activities:

Taxes
Property $27,691 $29,382 $31,612 $34,928 $35,187 $38,148 $39,862 $42,226 $46,006 $48,672 Transient occupancy 22,527 22,379 23,110 22,650 23,421 18,168 18,807 31,956 31,456 32,261 Sales & use 21,958 21,932 21,807 25,203 48,603 44,533 49,770 59,328 59,790 60,579 Business license 2,574 2,636 2,651 2,786 2,725 2,765 2,543 2,667 2,684 4,250 Utility users 13,810 14,338 14,014 14,149 13,888 14,120 14,674 15,610 16,381 16,330 Real property transfer 692 730 762 795 863 658 1,144 1,353 862 838 Cannabis taxes - - - 11 79 1,052 1,921 1,672 1,397 1,311 Other taxes - - - - 15 3 - 6 9 15
Franchise fees 3,751 3,132 4,231 3,597 3,637 3,635 3,852 4,176 4,254 6,079 Unrestricted motor vehicle license-in-lieu 39 37 42 49 46 74 69 108 90 108 Investment income 2,030 2,288 1,733 2,172 4,137 4,291 2,478 (1,661) 2,406 8,377 Other revenue 669 419 2,610 11,289 57 8,982 90 240 922
Extraordinary gain - ² 23,054 1,335 - - - - 745 - -
Extraordinary loss - - - - - - - - - -
Gain/loss on sale of capital assets - 44 404 - - - - - - - Transfers 342 433 299 (462) (277) (165) 625 (2,693) (1,176) 445 Total governmental activities 96,083 120,804 104,610 117,167 132,381 136,264 135,835 155,493 164,399 180,187 Business-type activities:

Investment earnings 1,218 1,304 556 724 4,574 3,952 419 (3,858) 2,797 2,797 Other revenue 555 248 9,205 1,372 1,914 28,873 4,296 189 189 189 Extraordinary gain - ² - - - - - - - - -
Transfers (342) (433) (299) 462 277 165 (625) 2,693 1,176 1,176 Total business-type activities 1,431 1,119 9,462 2,558 6,765 32,990 4,090 (976) 4,162 4,162 Total primary government $97,514 $121,923 $114,072 $119,725 $139,146 $169,254 $139,925 $154,517 $168,561 $184,349 Change in Net Position
Governmental activities $17,787 $49,099 $16,429 $5,079 $15,080 $9,302 $13,393 $45,052 $45,764 $20,545 Business-type activities (1,014) 16,870 25,481 14,557 6,610 35,558 18,242 40,513 20,364 41,695 Total primary government $16,773 $65,969 $41,909 $19,636 $21,690 $44,860 $31,635 $85,565 $66,128 $62,240 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)
(203)
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
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 2023 46,006 59,790 31,456 16,381 4,254 2,684 862 1,388 9 162,830 2024 48,672 60,579 32,261 16,330 5,143 4,250 838 1,311 15 169,399 Source: FY 23, 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)
(204)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $ 4,033 $ 2,747 $ 2,105 $ 1,689 $ 9,592 $ 1,252 $ 1,277 $ 7,060 $ 3,427 $ 2,249 Restricted 2,464 2,682 2,667 2,856 2,995 2,140 2,299 2,504 2,601 4,211 Committed 26,575 30,299 31,461 27,917 26,777 34,499 35,639 39,126 42,051 45,431 Assigned 177 203 312 357 - - - - - -
Unassigned - - - - (4,412) (5,739) (481) 2,878 7,684 (4,752) Total general fund $ 33,249 $ 35,931 $ 36,545 $ 32,819 $ 34,952 $ 32,152 $ 38,734 $ 51,568 $ 55,763 $ 47,139 All other governmental funds
Nonspendable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Restricted 62,301 62,104 62,980 78,845 79,020 84,883 93,492 95,862 97,394 103,493 Committed 12,170 12,965 12,883 11,899 11,052 13,342 23,364 40,552 46,668 50,999 Assigned 8,156 3,789 2,837 2,857 3,961 - - - - -
Unassigned (152) (1,604) (949) (4,546) (7,295) (6,702) (5,772) (9,028) (12,093) (10,158) Total all other governmental funds $ 82,475 $ 77,254 $ 77,751 $ 89,055 $ 86,738 $ 91,523 $ 111,084 $ 127,386 $ 131,969 $ 144,334

CITY OF SANTA BARBARA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING
(AMOUNTS EXPRESSED IN THOUSANDS)
(205)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes $92,888 $95,086 $97,702 $104,477 $128,923 $123,502 $133,159 $160,102 $164,107 $169,384 Franchise fees 3,751 3,132 4,231 3,597 3,637 3,650 3,852 4,176 4,254 6,079 Intergovernmental 23,899 27,055 19,929 17,723 23,344 24,211 39,572 26,713 16,756 26,437 Fines and forfeitures 4,177 3,597 4,106 3,975 3,481 2,812 2,225 3,249 2,045 2,933 Use of money and property 1,938 2,177 1,684 2,107 3,710 3,905 2,448 (1,274) 2,457 7,863 Charges for services 21,567 22,336 21,811 22,849 22,401 20,733 22,532 26,617 29,149 30,590 Program income 511 386 399 374 236 828 757 409 383 773
Other revenues 11,537 13,672 15,453 23,069 13,737 21,835 11,853 13,230 15,719 14,100 Total revenues 160,268 167,441 165,315 178,171 199,469 201,476 216,398 233,222 234,870 258,159 Expenditures
General government/administration (1) 13,792 15,923 15,980 17,681 18,261 19,005 17,803 20,918 20,853 22,394 Public safety 62,559 64,330 66,847 73,706 72,602 75,984 74,849 80,601 83,814 91,668 Public works 21,087 20,536 20,465 21,252 22,324 23,423 22,556 23,967 27,105 28,868 Community services 22,009 23,191 24,224 24,727 23,808 22,408 22,039 25,360 29,060 32,645 Community development 11,776 13,646 13,494 13,573 16,836 15,736 17,663 16,718 18,269 20,286 Community promotions (1) 2,620 - - - - - - - - -
Sustainability and Resilience - - - - - - 38 110 42 891 Capital outlay 23,370 32,068 21,056 19,076 45,300 42,070 32,435 34,652 42,458 54,608 Debt service
Principal 300 307 663 - - - - 334 485 681
Interest 51 38 58 - - - - 84 65 103
Total expenditures 157,564 170,039 162,787 170,015 199,131 198,626 187,383 202,744 222,151 252,144 Excess of revenues
over (under) expenditures 2,704 (2,598) 2,528 8,156 338 2,850 29,015 30,478 12,719 6,015 (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)
(206)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Other financing sources (uses)
Lease obligation $ - $ - $ - $ - $ - $ - $ - $ 1,179 $ 807 $ 499 Subscription Obligation - - - - - - - - 224 841
Transfers in 20,009 9,150 11,625 18,006 36,040 33,238 35,742 41,970 39,233 55,998 Transfers out (20,275) (9,093) (13,042) (18,580) (36,564) (34,103) (42,501) (44,491) (45,470) (59,610) Total other financing
sources (uses) (266) 57 (1,417) (574) (524) (865) (6,759) (1,342) (5,206) (2,272) Net change in fund balances 2,439 (2,541) 1,111 7,581 (187) 2,005 22,218 29,045 7,512 3,740 Debt service as a percentage of noncapital
expenditures 0.26% 0.24% 0.49% 0.00% 0.00% 0.00% 0.00% 0.23% 0.28% 0.35%

CITY OF SANTA BARBARA

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(207)
Net Taxable Total
Fiscal SBE Assessed Direct Tax
Year Secured Unsecured Nonunitary Value Rate
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%
2023 25,000,821 1,404,240 - 26,405,061 1.00%
2024 26,671,738 1,419,749 - 28,091,487 1.00%
Notes:

Exempt values are not included in Total
HDL Coren & Cone Data Source: Santa Barbara County Assessor 2013/14 - 2022/23 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
(208)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Direct Rates:

Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping Rates: (2)
Cold Spring Elementary 0.01446 0.01411 0.01207 0.01192 0.01177 0.01177 0.01176 0.01217 0.01217 0.01157 Goleta Union 0.01314 0.01248 0.01061 0.00955 0.00907 0.00862 0.00776 0.02621 0.02124 0.01977 Hope Elementary 0.01850 0.01779 0.01514 0.01222 0.01181 0.01181 0.02280 0.02340 0.03959 0.03804 Montecito Union Elementary Bond 1997 A 0.00050 0.00025 0.00019 0.00010 0.00007 0.00007 0.00007 0.00007 0.00004 0.00003 Santa Barbara Community College Bond 2008 0.00850 0.00850 0.00731 0.00731 0.00731 0.00731 0.00731 0.00709 0.00688 0.00654 Santa Barbara Elementary 0.01995 0.01995 0.01776 0.01713 0.03445 0.02850 0.02616 0.02639 0.02804 0.02663 Santa Barbara High Bond 0.01995 0.01670 0.01581 0.02692 0.02417 0.02417 0.02414 0.02415 0.02617 0.02524

0.09500 0.08978 0.07889 0.08515 0.09865 0.09225 0.10000 0.11948 0.13413 0.12782 Total Direct and Overlapping Rates: 1.09500 1.08978 1.07889 1.08515 1.09865 1.09225 1.10000 1.11948 1.13413 1.12782 City'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 0.11963 Voter Approved City Debt Rate
Total Direct Rate: (4) 0.12008 0.12019 0.12010 0.12009 0.12009 0.12011 0.11877 0.11880 0.13878 0.13841 Notes:

HDL Coren & Cone Data Source: Santa Barbara County Assessor 2013/14 - 2022/23 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 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during fiscal year 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/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)
(209)
Percentage of
Taxable Net Total Taxable
Assessed Net Assessed
Taxpayer Value Value
HC ASSETCO $147,817 0.53%
LEVON INVESTMENTS LLC 147,478 0.52%
FESS PARKER DOUBLETREE HOTEL 117,600 0.42%
KHP IV SANTA BARBARA LLC 99,831 0.36%
MCC BB PROPERTY LLC 95,419 0.34%
XHR SANTA BARBARA LLC 90,383 0.32%
ROMASANTA FAMILY-COMMERCIAL LP 86,984 0.31%
EL ENCANTO INC 84,160 0.30%
DARIO L PINI TRUST 75,633 0.27%
PASEO NUEVO OWNER LLC 69,026 0.25%
$1,014,330 3.61%
Percentage of
Taxable Net Total Taxable
Assessed Net Assessed
Taxpayer Value Value
FESS PARKER DOUBLETREE HOTEL $87,327 0.52%
LEVON INVESTMENTS LLC 83,783 0.50%
EL ENCANTO INC 79,700 0.47%
DARIO PINI 59,512 0.35%
HITCHCOCK HOLDINGS LLC 53,839 0.32%
GRI- REGENCY LLC 49,928 0.30%
ESTATE OF HUGUETTE M CLARK 47,031 0.28%
I AND G DIRECT REAL ESTATE 3 LP 45,131 0.27%
KHP II CANARY LLC 43,891 0.26%
MCC BB PROPERTY LLC 43,837 0.26%
$593,978 3.54%
Notes:

HDL Coren & Cone Data Source: Santa Barbara County Assessor 2013/14 and 2022/23 Combined Tax Rolls and the SBE Non Unitary Tax Roll.

Fiscal Year 2015
Fiscal Year 2024

CITY OF SANTA BARBARA

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(210)
Fiscal Year Total Tax Collections
Ended Levy for in Subsequent
June 30 Fiscal Year Amount Percentage of Levy Years Amount Percentage of Levy 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%
2023 46,006 46,006 100% - 46,006 100%
2024 48,672 48,672 100% - 48,672 100%
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) (211)
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 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 - - 3,793 42,449 10,081 122,785 179,108 3.97% 2,068 2023 - - 3,275 39,149 8,093 114,795 165,312 3.41% 1,935 2024 - - 2,744 38,816 7,991 115,325 164,877 3.15% 1,924 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) (212)
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 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 - - 3,793 - 3,793 0.02% 44
2023 - - 3,275 - 3,275 0.01% 38
2024 - - 2,744 - 2,744 0.01% 32
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)
(213)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Assessed valuation $18,330,384 $19,637,766 $20,856,683 $22,171,096 $23,507,910 $24,610,953 $25,832,015 $26,720,501 $28,776,023 $30,480,053 Coverage percentage 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Adjusted assessed valuation $4,582,596 $4,909,442 $5,214,171 $5,542,774 $5,876,978 $6,152,738 $6,458,004 $6,680,125 $7,194,006 $7,620,013 Debt limit percentage 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Debt limit $687,389 $736,416 $782,126 $831,416 $881,547 $922,911 $968,701 $1,002,019 $1,079,101 $1,143,002 Total net debt applicable to limit - - - - - - - - - -
Legal debt margin $687,389 $736,416 $782,126 $831,416 $881,547 $922,911 $968,701 $1,002,019 $1,079,101 $1,143,002 Total net debt applicable to the limit
as 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 2023/24 Combined Tax Rolls The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

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)
(214)
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 2015 $ 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 11.00 2016 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 11.00 2017 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 11.00 2018 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 11.00 2019 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 11.00 2020 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 -
2023 67,334 45,089 22,246 1,790 352 10.39 27,438 19,068 8,369 880 278 7.23 - - 1,2
-
1 -
2024 69,514 48,035 21,479 1,865 270 10.06 28,683 21,694 6,989 925 234 6.03 - - 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)
(215)
Plus Less Net Less Net Plus Less Net
Fiscal Airport Non-Operating Operating Available Airport Operating Available Waterfront Non-Operating Operating Available Year Revenue Rents/Leases4 Expenses Revenue Principal Interest Coverage Revenue Expenses Revenue Principal Interest Coverage Revenue Rents/Leases4 Expenses Revenue Principal Interest Coverage 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 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 2023 28,681 - 24,835 3,846 1,125 1,337 1.56 28,681 24,835 3,846 - - - 18,158 - 14,772 3,386 963 185 2.95 2024 10,019 21,993 28,022 3,990 1,180 1,281 1.62 10,019 28,022 3,990 - - - 13,494 6,088 16,276 3,306 995 151 2.88 3 Final year of debt service FY2020
4 GASB 87 implementation removed rents and leases from operating revenue, as it is considered non-operating revenues.

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 3 Waterfront Revenue Bonds Debt Service Debt Service Debt Service
---- ------------------------------ ------------------------ -----------------------------

CITY OF SANTA BARBARA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS
(216)
Per
Personal Capita June 30
Fiscal City Income Personal Unemployment
Year Population (1) (in thousands) (2) Income (2) Rate (3) 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%
2023 85,418 4,851,096 56,792 2.3%
2024 85,679 5,228,745 61,027 3.0%
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
(217)
Percentage of Percentage of
Number of Total Number of Total
Employer Employees (1) Employment Employer Employees (1) Employment UC Santa Barbara 10,973 12.79% University of California, Santa Barbara 10,592 12.53% County of Santa Barbara 4,400 5.13% County of Santa Barbara 4,582 5.42% Vandenberg Space Force Base 4,212 4.91% Cottage Health System 3,449 4.08% Santa Barbara Unified School District 3,460 4.03% Santa Barbara City College 2,149 2.54% Cottage Health 3,052 3.56% Santa Barbara Unified School District 2,000 2.37% Marian Regional Medical Center 2,244 2.62% City of Santa Barbara 1,795 2.12% Santa Barbara City College 2,045 2.38% Raytheon Electronic Systems 1,100 1.30% Santa Maria-Bonita School District 2,010 2.34% Sansum Medical Foundation Clinic 1,002 1.19% Chumash Casino Resort 2,000 2.33% Santa Barbara County Education 875 1.04% Mission Linen Supply 2,000 2.33% Goleta Union School District 625 0.74% Ten largest companies or organizations 36,396 42.42% 28,169 33.34% Sources:
(1) County of Santa Barbara, City of Santa Barbara, Pacific Coast Business Times As of June 30, 2024 As of June 30, 2015
Source Notes: In preparing the FY24 principal employers schedule, the total number of employees ("Labor Force") at 6/30/24 was obtained from the State of California Employment Development Department. This Labor Force figure includes employee data from Santa Barbara, Goleta, Carpinteria, Summerland, and Isla Vista. Prior employer data (FY15) was obtained from FY15 ACFR (CAFR) Statistic Section, and FY24 Employer data was from the Pacific Coast Business Times' 2024 Book of Lists ("Employers in Santa Barbara County"). Employment data is intended for use as a general guide only. Inquiries regarding employment data should be directed to the respective employer.

CITY OF SANTA BARBARA

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
(218)
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Administration 105.6 106.5 106.5 108.3 111.3 103.0 106.0 110.3 111.3 118.5 Administrative services (3) 28.5 30.5 30.5 30.5 31.5 28.0 29.0 32.0 32.0 43.0 City administrator 10.5 9.5 9.5 8.5 8.5 13.0 14.0 15.0 15.0 14.0 City attorney 11.6 11.0 11.0 13.8 15.8 15.0 16.0 16.8 16.8 15.0 Finance 47.0 47.5 47.5 47.5 47.5 39.0 39.0 38.5 39.5 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 316.0 317.0 317.0 316.0 316.0 316.0 315.0 316.0 316.0 315.0 Police 211.0 212.0 212.0 211.0 210.0 210.0 209.0 210.0 210.0 210.0 Fire 105.0 105.0 105.0 105.0 106.0 106.0 106.0 106.0 106.0 105.0 Public works (4) 144.0 143.0 140.0 141.0 143.0 142.0 142.0 146.8 147.0 145.0 Community services 122.4 126.5 131.6 132.8 125.5 123.0 124.0 129.8 128.2 127.0 Library 36.1 36.1 38.4 40.4 35.0 34.0 35.0 39.0 37.4 45.0 Parks and recreation 86.3 90.4 93.3 92.5 90.5 89.0 89.0 90.8 90.8 82.0 Community development 67.8 70.8 73.8 72.8 75.3 76.0 78.0 81.0 81.0 81.5 Water 68.8 74.3 75.3 72.8 72.8 70.5 71.5 71.0 71.8 71.8 Wastewater 49.0 49.0 49.0 52.5 52.5 56.5 56.5 57.0 57.0 57.0 Sustainability and resilience (2) 0.0 0.0 0.0 0.0 0.0 14.0 15.0 17.0 17.0 31.0 Airport 55.5 55.5 55.8 61.0 63.0 66.0 67.0 71.0 71.0 73.0 Waterfront 46.0 46.0 47.0 47.0 47.0 48.0 48.0 48.0 48.0 47.0 Parking and transportation 30.4 31.4 31.4 30.4 30.4 27.0 27.0 30.4 29.4 29.4 Golf (1) 10.3 9.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total 1,015.7 1,029.7 1,027.3 1,034.5 1,036.7 1,042.0 1,050.0 1,078.2 1,077.7 1,096.2 Note:

Source: City's Human Resources Department
Note:
(2) Sustainability and Resilience Department started in FY20. (1) Effective July 1, 2016 operation of the golf course was contracted to a private management company, which eliminated the need for dedicated full time and part time employees.

Full-time Equivalent Employees as of June 30

CITY OF SANTA BARBARA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
(219)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Year Year Year
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police
Parking citations 55,700 55,716 59,580 59,613 72,038 49,439 55,439 51,554 25,923 39,125 Street sweeping citations 27,109 29,031 27,032 26,349 26,922 19,514 21,675 25,925 20,151 20,624 Fire
Number of calls received 8,341 9,102 9,891 9,240 10,583 7,312 9,198 11,292 11,448 12,031 Engine company fire inspections 3,116 2,890 2,450 2,329 2,034 924 - 564 823 1,454 Public works
Street resurfacing (Blocks) 23.7 14.2 8.4 11.3 36.0 54.0 31.0 0.0 26.0 126.0 Community services
Library items checked out 782,860 825,731 792,767 826,420 957,879 749,877 565,258 697,963 564,071 637,747 Community development
Building inspections completed 11,650 11,403 11,805 13,128 11,690 13,252 12,091 13,838 14,063 14,997 Total permits issued (1) 2,580 2,818 2,571 2,777 2,741 2,438 2,388 2,273 3,949 2,774 Water
Million gallons water treated 4,960 4,247 4,132 4,600 4,016 4,382 5,558 2,687 4,054 4,156 Percent of drinking water regulations met 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Wastewater
Million gallons waste water treated 2,360 2,301 2,312 2,252 2,369 2,202 2,088 2,137 2,320 2,500 Miles of wastewater collection system pipes cleaned 219 262 219 277 346 280 275 330 271 240 Percent of discharge requirements met 100.0% 100% 100% 100% 100% 100% 100% 100% 100% 100% Airport
Total number of annual passengers 628,837 630,612 690,992 738,079 860,909 796,908 426,836 1,122,129 1,385,020 1,314,660 Annual tons of airfreight 1,800 1,794 1,736 1,943 1,838 1,675 1,758 1,607 1,399 1,411 Waterfront
Number of lease contracts managed 64 64 65 60 60 61 61 62 62 62 Number of parking permits distributed 814,800 765,471 781,419 727,345 736,660 609,178 754,696 840,583 828,014 781,014 Parking
Vehicles parked in city lots 4,488,773 4,433,780 4,358,066 4,128,353 4,118,116 2,797,736 1,672,513 2,076,236 2,962,885 3,039,590 Golf course
Paid rounds of golf 57,089 55,376 53,799 54,300 52,222 54,465 76,393 72,248 65,647 71,895 Source: Various City Departments
(1) FY23 permits issued was corrected in FY24 due to clerical error. (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
(220)
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Year Year Year Year
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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) 254 255 255 255 254 254 254 254 254 256 Streetlights
Concrete installed-sidewalk, curb and gutter (sq ft.) 12,140 14,145 15,976 15,387 83,698 28,242 21,481 54,837 0 N/A Sidewalks (sq. ft.) - - - - - - - - 8,000,000 8,000,000 Curbs and Gutters (sq. ft.) - - - - - - - - 1,609,344 1,609,344 Community services
Parks acreage 1,765 1,765 1,808 1,808 1,810 1,815 1,815 1,815 1,815 1,815 Parks and sports facilities 57 57 60 60 60 60 60 60 60 60 Swimming pools 2 2 2 2 2 2 2 2 2 2
Tennis and pickle ball courts 34 34 33 33 33 33 33 33 33 33 Community buildings 15 15 16 16 16 16 16 16 16 16
Libraries 2 2 2 2 2 2 3 3 3 3
Number of volumes (books, periodicals, tapes, etc.) 330,773 439,773 396,055 564,103 506,195 521,414 454,560 436,554 436,554 436,554 Community development
Water
Number of distribution system reservoirs 15 15 15 15 15 15 15 15 15 15 Number of water supply reservoirs 1 1 1 1 1 2 2 3 3 3
Number of pump stations 14 14 14 14 14 15 17 17 17 17
Number of treatment plants 2 2 3 3 3 3 3 3 3 3
Number of wells 9 8 9 10 10 9 9 9 9 9
Wastewater
Number of treatment plants 1 1 1 1 1 1 1 1 1 1
Number of lift stations 9 7 7 7 7 7 7 7 7 7
Airport
Runways and Taxiways, paved surface (sq. footage) 6,842,079 6,842,079 6,842,079 6,842,079 6,842,079 6,943,779 6,784,710 6,784,710 6,784,710 6,784,710 Waterfront
Number of harbor slips 1,139 1,139 1,143 1,141 1,143 1,143 1,143 1,143 1,143 1,143 Parking
Number of parking structures and lots 16 16 15 15 15 15 15 15 16 15 Number of parking spaces 3,628 3,628 3,605 3,605 3,605 3,605 3,605 3,605 3,532 3,584

CITY OF SANTA BARBARA

COUNCIL AGENDA REPORT
DATE: March 18, 2025
TO: Mayor and Councilmembers
FROM: City Administrator’s Office
SUBJECT: Annual Report on Community Oversight of Law Enforcement and Work Plan Submitted on Behalf of the Fire and Police Commission RECOMMENDATION:

That Council receive the annual report on community oversight of law enforcement and work plan submitted on behalf of the Fire and Police Commission.

EXECUTIVE SUMMARY:

The City Ordinance assigning duties and authorities to the Board of Fire and Police Commissioners includes the requirement that the police monitor role within the City Administrator’s Office coordinate with the Commission on the submission of an annual report and work plan to the City Council no later than March 1 of each year [Section

2.09.040 B(9)]. The Ordinance specifies that the report include information and input on items such as: the Commission’s activities during the year, evaluation of the workload and capacity of the Commission to address priority issues, and a summary of the number, type, and disposition of complaints filed with Police Department and Fire Department by members of the public.

DISCUSSION:

Commission’s Activities
Over the course of previous year, the Fire and Police Commission received its first Annual Report on Complaints and Investigations along with the Use of Force Annual Report and the Racial Identity and Profiling Act (RIPA) Annual Report. They also were presented information on public safety wellness programs, the Regional Fire Communications Center (RFCC), and were present for the groundbreaking ceremony for the new Police Station. The Commission also reviewed and updated the Tow Rotation List and Tow Operating Policies.

Agenda Item No. 16
File Code No. 520.01
Council Agenda Report
Annual Report on Community Oversight of Law Enforcement and Work Plan Submitted on Behalf of the Fire and Police Commission
March 18, 2025

Page 2 ends

Santa Barbara City CouncilMarch 18, 2025

Santa Barbara City Council
March 18, 2025