Agenda packet — Solana Beach City Council, February 22, 2023 (part 2 of 3)

CEQA COMPLIANCE STATEMENT:

These Ordinances are exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Section 15308 of the CEQA Guidelines (14 CCR 15308) because they are activities undertaken to assure the maintenance, restoration, enhancement and protection of the environment.

FISCAL IMPACT:

There would be no impact to the General Fund from Ordinance 529, as proposed. No changes to existing City fees are proposed at this time.

WORK PLAN:

N/A
OPTIONS:
• Approve Staff recommendation.
• Approve Staff recommendation with alternative amendments / modifications. • Deny Staff recommendation.
• Provide other direction to Staff.

DEPARTMENT RECOMMENDATION:

Staff recommends that the City Council:

1. Conduct the Public Hearing: Open the public hearing, report Council disclosures, receive public testimony, and close the public hearing.

2. Find the project categorically exempt from CEQA pursuant to Section 15308 CEQA Guidelines.

3. Re-Introduce Ordinance 529 (1st Reading).

CITY MANAGER’S RECOMMENDATION:

Approve Department Recommendation.
_________________________
Gregory Wade, City Manager
Attachments:

1. Ordinance 529
Ordinance 529

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ORDINANCE 529

AN ORDINANCE OF THE CITY COUNCIL OF

SOLANA BEACH, CALIFORNIA, ADOPTING
ADDITIONS TO CHAPTER 15.23 (GREEN BUILDING
CODE) OF TITLE 15 (BUILDING AND

CONSTRUCTION) OF THE SOLANA BEACH

MUNICIPAL CODE TO AMEND THE CALIFORNIA

GREEN BUILDING STANDARDS CODE RELATED

TO CLIMATE ACTION THROUGH BUILDING

ELECTRIFICATION AND ELECTRIC VEHICLE

INFRASTRUCTURE
WHEREAS, consensus exists among the world's leading climate scientists that climate change caused by greenhouse gas (GHG) emissions from human activities is among the most significant problems facing the world today; and WHEREAS, the City of Solana Beach declared a Climate Emergency in 2020; and
WHEREAS, the City of Solana Beach adopted a Climate Action Plan (CAP) that directs the City in reducing approximately 70,000 metric tons of GHG emissions annually by the year 2035 to meet reduction goals consistent with California's GHG targets; and
WHEREAS, measures in the CAP aim to curb the use of fossil fuels, a primary contributor to GHG emissions, in buildings and transportation; and WHEREAS, reach codes that extend beyond the California Building Standards Code are being adopted by cities state-wide to accelerate GHG reductions from new construction through building electrification and electric vehicle (EV) infrastructure beyond state code requirements; and WHEREAS, the City of Solana Beach wishes to adopt a reach code ordinance with modifications to enhance building electrification and EV infrastructure within the City as part of Title 15 of the Municipal Code; and WHEREAS, the 2022 California Building Standards Code adopted by the California Building Standards Commission has set minimum Green Building Standards and, within the code, expressly states that the standards are viewed as "minimal" and that local governmental entities retain discretion, pursuant to Health and Safety Code Section 17958, to exceed the standards established by such code based on express findings that such changes or modifications are reasonably necessary because of local climatic, topographical, or geological conditions ATTACHMENT 1
Ordinance 529

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pursuant to Health and Safety Code Section 17985.5, 17958.7, and 18941.5(b); and
WHEREAS, California Building Standards Code, Title 24, Part 11, Section 101.7.1 provides that local climatic, geological, or topographical conditions include environmental conditions established by a city, county, or city and county; and WHEREAS, as required by Health and Safety Code Section 17958, the City of Solana Beach does herewith make express findings that amendments to the California Building Standards Code are necessary for the protection of the public health, safety and welfare due to the following climatic, topographic or geological features existing in the City of Solana Beach:

1. The City has over 1.7 miles of beaches, a creek, and other low-lying areas prone to flooding. The City is at risk to coastal storms, erosion, and flooding.

There is broad scientific consensus that the earth will continue to warm and sea levels will rise impacting beaches, roads, properties, infrastructure, and environmentally sensitive areas.

2. The City has experienced increases in annual temperature. Annual temperatures have increased more than 1 degree F in many parts of the state and have exceeded increases of 2 degrees F in areas that include the San Diego region. Temperature increases are expected to continue into the future.

3. The City is situated in hilly, inland terrain. Approximately 50% of the area, for fire purposes, is "wildland," covered by native vegetation on steep inaccessible hillsides. The native ground cover is highly combustible grasses, dense brush and chaparral. Natural firebreaks in these areas are significantly lacking.

4. The City experiences seasonal climatic conditions during the late summer and fall that can result in frequent Santa Ana weather patterns. Dry, hot, strong, and gusty Santa Ana wind conditions produce extreme dryness and some of the highest wind events in San Diego County, resulting in some of the region's most catastrophic wildfires. These fires impact public health in the populated coastal zone through extreme heat and smoke.

5. The topography of the City is such that its boundaries enclose an area of 3.5 square miles that is mostly built out. As such, construction activity in the City is dominated by residential and commercial remodeling projects that significantly alter original or existing building structures rather than by new development and construction projects. The building code needs to address these significant modifications to the existing building stock.

6. The City acts to address environmental conditions that impact public health and welfare. Sustainability and resiliency are core values of the City's General Plan and Climate Action Plan. Energy efficiency promotes public health and welfare by enhancing the environmental and economic health of the City Ordinance 529

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through green practices in design, construction, maintenance, and operation of new and existing buildings. Construction of energy efficient buildings and installation of renewable energy systems protects the public health and welfare by reducing air pollution, greenhouse gas emissions, average and peak energy demand, and adverse impacts from power outages.

7. Amendments to the California Green Building Standards are reasonably necessary to promote energy efficiency and conservation in the City, increase use of sustainable energy sources, reduce GHG emissions, promote green development patterns, and maintain a long-term balance between environmental, social, and economic impacts that protect public health and welfare.

NOW THEREFORE, the City Council of the City of Solana Beach, California, does ordain as follows:

SECTION 1. FINDINGS.

The City Council finds and determines that the foregoing recitals are true and correct and are hereby incorporated herein as findings and determinations of the City Council.

The recitals constitute findings in this matter and, together with the staff report, other written reports, public testimony and other information contained in the record, are an adequate and appropriate evidentiary basis for the actions taken in this Ordinance.

SECTION 2. ENVIRONMENTAL REVIEW.

This Ordinance is exempt from the provisions of the California Environmental Quality Act ("CEQA") pursuant to Section 15308 of the CEQA Guidelines (14 CCR 15308) because it is an activity undertaken to assure the maintenance, restoration, enhancement and protection of the environment.

SECTION 3. ADDITION OF SECTIONS 15.23.020 THROUGH 15.23.060 TO THE SOLANA BEACH MUNICIPAL CODE.

Sections 15.23.020 through 15.23.070 of the Solana Beach Municipal Code are hereby repealed in their entity. Sections 15.23.020 through 15.23.060 are hereby added to amend the 2022 California Building Standards Code, California Code of Regulations, Title 24, Part 11 and shall read as follows:

15.23.020 Applicability
The requirements of this Chapter shall apply at the time of building permit application for all newly constructed buildings, as defined in Title 24, Part 2, Chapter 2, Section 202 of the California Code of Regulations, as amended by Solana Beach Municipal Code Section 15.22.030.

Ordinance 529

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15.23.030 Definitions
For purposes of this Chapter, the following definitions shall apply:

MIXED-FUEL BUILDING. A building that is plumbed for the use of natural gas or propane as fuel for any system. Portable propane appliances for use outside of the building envelope, such as outdoor cooking and outdoor heating appliances, that are not connected to any fuel gas infrastructure, are not considered as plumbed for propane.

NEWLY CONSTRUCTED or NEW CONSTRUCTION shall have the meaning as defined in Title 24, Part 2, Chapter 2, Section 202 of the California Code of Regulations, as amended by Solana Beach Municipal Code Section

15.22.030.

15.23.040 Required Electric End Uses
Section 4.504.6 Required Electric End Uses, is hereby added to the 2022 California Green Building Standards Code to read:

Section 4.504.6 Required Electric End Uses. All newly
constructed residential and motel/hotel buildings shall use electricity as the source of energy for all space heating, water heating (including pools and spas), and clothes drying appliances and equipment.

Exception: Solar thermal systems for pool, spa heating, domestic hot water, service hot water and space heating.

Section 5.504.6 Required Electric End Uses, is hereby added to the 2022 California Green Building Standards Code to read:

Section 5.504.6 Required Electric End Uses. All newly
constructed nonresidential buildings shall use electricity as the source of energy for all space heating, water heating (including pools and spas), and clothes drying appliances and equipment.

Exception: Solar thermal systems for pool, spa heating, domestic hot water, service hot water and space heating.

15.23.050 Electric-Readiness and Energy Storage Prewiring Section 4.504.7 Electric-Readiness is hereby added to the 2022 California Green Building Standards Code to read:

Section 4.504.7 Electric-Readiness. In newly constructed mixed-fuel Ordinance 529

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residential and hotel/motel buildings, where natural gas- or propaneplumbed systems and appliances are installed, raceways and electrical capacity shall be installed for future electrification of each system or appliances. Electric ready measures include panel capacity and raceways (or conductors) from the electrical panel(s) to the location of each gas outlet sufficiently sized to meet future electric power requirements at the time of construction so that wall penetrations and demolition work is avoided at or minimized when the systems and appliances are converted to electric-powered systems. The locations of specific gas appliances shall be made electric-ready as follows:
1) Combined Cooktop and Oven or Stand Alone Cooktop. Buildings plumbed for natural gas or propane equipment shall meet the requirements of the California Energy Code, Title 24, Part 6, Section 150.0(u).
2) Stand Alone Cooking Oven. Buildings plumbed for natural gas or propane equipment shall include the following components for each gas terminal or stub out:
a. A dedicated 240 volt, 20 amp or greater receptacle within three (3) feet of the appliance and accessible with no obstructions; b. The electrical receptacle shall be labeled with the words "For Future Electric Oven" and be electrically isolated; and c. A double pole circuit breaker in the electrical panel labeled with the words "For Future Electric Oven".
3) Any other gas appliances and equipment shall be deemed electric ready by a licensed design professional associated with the project, who shall provide calculations and documentation that the design includes bus bar capacity, raceway or conductor capacity, and space necessary for the installation of electrical equipment that can serve the intended function of the gas equipment.

Section 4.504.8 Energy Storage Pre-wiring is hereby added to the 2022 California Green Building Standards Code to read:

Section 4.504.8 Energy Storage Pre-wiring

1. All newly constructed hotel and motel buildings shall be prewired for the installation of battery storage to accommodate a future storage system that meets the requirements of California Energy Code, Title 24, Part 6, Section 140.10(b), where the assumed size of the PV system shall be as specified in the California Energy Code, Title 24, Part 6, Section 120.11, as amended.

2. All newly constructed high-rise residential buildings shall be Ordinance 529

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prewired for the installation of battery storage to accommodate a future storage system that meets the requirements of California Energy Code, Title 24, Part 6, Section 170.2(h), where the assumed size of the PV system shall be as specified in the California Energy Code, Title 24, Part 6, Section 120.11, as amended.

3. All newly constructed low-rise residential buildings shall be prewired for the installation of battery storage to accommodate a future storage system that meets the requirements as otherwise specified for high-rise residential buildings in the California Energy Code, Title 24, Part 6, Section 170.2(h), where the assumed size of the PV system shall be as specified in the California Energy Code, Title 24, Part 6, Section 120.11, as amended.

Section 5.504.7 Electric-Readiness is hereby added to the 2022 California Green Building Standards Code to read:

Section 5.504.7 Electric-Readiness. In newly constructed nonresidential buildings, where natural gas- or propane-plumbed systems and appliances are installed, raceways and electrical capacity shall be installed for future electrification of each system and for appliances. Electric ready measures include panel capacity and raceways (or conductors) from the electrical panel(s) to the location of each gas outlet sufficiently sized to meet future electric power requirements at the time of construction so that wall penetrations and demolition work is avoided at or minimized when the systems and appliances are converted to electric-powered systems. The locations of specific gas appliances shall be made electric-ready as follows:
1) Combined Cooktop and Oven or Stand Alone Cooktop. Buildings plumbed for natural gas or propane equipment shall meet the requirements of the California Energy Code, Title 24, Part 6, Section 150.0(u).
2) Stand Alone Cooking Oven. Buildings plumbed for natural gas or propane equipment shall include the following components for each gas terminal or stub out:
a. A dedicated 240 volt, 20 amp or greater receptacle within three (3) feet of the appliance and accessible with no obstructions; b. The electrical receptacle shall be labeled with the words "For Future Electric Oven" and be electrically isolated; and c. A double pole circuit breaker in the electrical panel labeled with the words "For Future Electric Oven".
3) Any other gas appliances and equipment shall be deemed electric ready by a licensed design professional associated with the project, who shall provide calculations and documentation that the design includes bus bar Ordinance 529

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capacity, raceway or conductor capacity, and space necessary for the installation of electrical equipment that can serve the intended function of the gas equipment.

Section 5.504.8 Energy Storage Pre-wiring is hereby added to the 2022 California Green Building Standards Code to read:

All newly constructed nonresidential buildings shall be prewired for the installation of battery storage to accommodate a future storage system that meets the requirements of California Energy Code, Title 24, Part 6, Section 140.10(b), where the assumed size of the PV system shall be as specified in the California Energy Code, Title 24, Part 6, Section 120.11, as amended.

15.23.060 Electric Vehicle Charging
The first paragraph of Section A4.106.8 and the entirety of Section A4.106.8.1, as amended herein, are hereby added to the 2022 California Green Building Standards Code to read:

A4.106.8 Electric vehicle (EV) charging for new construction. New construction shall comply with Section A4.106.8.1 to facilitate future installation and use of electric vehicle chargers. Electric vehicle supply equipment (EVSE) shall be installed in accordance with the California Electrical Code, Article 625.

A4.106.8.1 New one- and two-family dwellings and townhouses with attached private garages.

Tier 1 and Tier 2. For each dwelling unit, a dedicated 208/240- volt branch circuit shall be installed in the raceway required by Section

4.106.4.1. The branch circuit and associated overcurrent protective device shall be rated to 40 amperes minimum. In addition, the circuit shall terminate at either a) a receptacle labeled "Electric Vehicle Outlet" with at least a½ inch font adjacent to the parking space, orb) electric vehicle supply equipment (EVSE) with a minimum capacity of 30 amperes.

For each dwelling unit with two or more parking spaces, an additionalat least one EV Capable Space shall be provided.

All electrical components related to this section shall be installed in accordance with the California Electrical Code.

A4.106.8.1.1 Identification. The service panel or sub-panel circuit directory shall identify the overcurrent protective device(s) designated for EV charging as "EV CHARGER", "EV READY" or Ordinance 529

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"EV CAPABLE", as the case may be, in accordance with the California Electrical Code.

Section 4.106.4.4 EV Chargers, is hereby added to the 2022 California Green Building Standards Code to read:

4.106.4.4 EV Chargers.

For any newly constructed multifamily building, at least 25 percent of the total number of required parking spaces provided for all types of parking facilities, but in no case less than one, shall have electric vehicle supply equipment installed. Each such space shall be equipped with fully operational Level 2 electric vehicle supply equipment (EVSE) or a Direct Current Fast Charger (DCFC), except at least one space shall be provided with a Level 2 EVSE. All of the remaining parking spaces shall be EV capable spaces, capable of supporting future Level 2 EVSE.

Calculations for the required number of EVSE spaces shall be rounded up to the nearest whole number.

For any newly constructed hotel or motel building, at least 25 percent of the total number of required parking spaces provided for all types of parking facilities, but in no case less than one, shall have Level 2 electric vehicle supply equipment (EVSE) installed. Each such space shall be equipped with fully operational Level 2 electric vehicle supply equipment (EVSE) or a Direct Current Fast Charger (DCFC), except at least one space shall be provided with a Level 2 EVSE. All of the remaining parking spaces shall be EV capable spaces, capable of supporting future Level 2 EVSE. Calculations for the required number of EVSE spaces shall be rounded up to the nearest whole number.

Section 5.106.5.3.2.1 Additional electric vehicle charging station (EVCS) requirements, is hereby added to the 2022 California Green Building Standards Code to read:

5.106.5.3.2.1 Additional electric vehicle charging station (EVCS) requirements.

For any newly constructed nonresidential building, at least 20 percent of the total number of required parking spaces provided for all types of parking facilities, but in no case less than one, shall have electric vehicle supply equipment installed. Each such space shall be equipped with fully operational Level 2 electric vehicle supply equipment (EVSE) or a Direct Current Fast Charger (DCFC), except at least one space shall be provided with a Level 2 EVSE. At least 35 percent of the remaining parking spaces shall be EV capable spaces, capable of supporting future Level 2 EVSE. Calculations for the Ordinance 529

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required number of EVSE spaces shall be rounded up to the nearest whole number.

SECTION 4. SEVERABILITY.

If any section, subsection, paragraph, sentence, clause, phrase or term (each a "Provision") in this Ordinance, or any Provision's application to any person or circumstance, is held illegal, invalid or unconstitutional by a court of competent jurisdiction, all other Provisions not held illegal, invalid or unconstitutional, or such Provision's application to other persons or circumstances, shall not be affected.

The City Council declares that it would have passed this Ordinance, and each Provision therein, whether any one or more Provisions be declared illegal, invalid or unconstitutional.

SECTION 5. PUBLICATION AND EFFECTIVE DATE.

Within fifteen (15) days after its adoption, the City Clerk of the City of Solana Beach shall cause this Ordinance to be published pursuant to the provisions of Government Code Section 36933. This Ordinance shall become effective 30 days after its adoption and shall be in full force and effect 30 days after adoption, on January 1, 2023 or following filing with the California Building Standards Commission pursuant to applicable law, whichever is later.

INTRODUCED AND FIRST READ at a regular meeting of the City Council of the City of Solana Beach, California on the 22nd day of February 2023; and THEREAFTER ADOPTED at a regular meeting of the City Council of the City of Solana Beach, California on the _ day of ___ 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
___________________________
LESA HEEBNER, Mayor
APPROVED AS TO FORM: ATTEST
______________________________ ____________________________ JOHANNA N. CANLAS, City Attorney ANGELA IVEY, City Clerk Attachment 2
ORDINANCE 529

AN ORDINANCE OF THE CITY COUNCIL OF

SOLANA BEACH, CALIFORNIA, ADOPTING
ADDITIONS TO CHAPTER 15.23 (GREEN BUILDING
CODE) OF TITLE 15 (BUILDING AND

CONSTRUCTION) OF THE SOLANA BEACH

MUNICIPAL CODE TO AMEND THE CALIFORNIA

GREEN BUILDING STANDARDS CODE RELATED

TO CLIMATE ACTION THROUGH BUILDING

ELECTRIFICATION AND ELECTRIC VEHICLE

Page 2 of 10 ends

1. The City has over 1.7 miles of beaches, a creek, and other low-lying areas prone to flooding. The City is at risk to coastal storms, erosion, and flooding.

There is broad scientific consensus that the earth will continue to warm and sea levels will rise impacting beaches, roads, properties, infrastructure, and environmentally sensitive areas.

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welfare by enhancing the environmental and economic health of the City through green practices in design, construction, maintenance, and operation of new and existing buildings. Construction of energy efficient buildings and installation of renewable energy systems protects the public health and welfare by reducing air pollution, greenhouse gas emissions, average and peak energy demand, and adverse impacts from power outages.

NOW THEREFORE, the City Council of the City of Solana Beach, California, does ordain as follows:

SECTION 1. FINDINGS.

The City Council finds and determines that the foregoing recitals are true and correct and are hereby incorporated herein as findings and determinations of the City Council.

SECTION 2. ENVIRONMENTAL REVIEW.

SECTION 3. ADDITION OF SECTIONS 15.23.020 THROUGH 15.23.060 TO THE SOLANA BEACH MUNICIPAL CODE.

Ordinance 529
Green Building Code

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15.23.030 Definitions
For purposes of this Chapter, the following definitions shall apply:

15.22.030.

15.23.040 Required Electric End Uses
Section 4.504.6 Required Electric End Uses, is hereby added to the 2022 California Green Building Standards Code to read:

Exception: Solar thermal systems for pool, spa heating, domestic hot water, service hot water and space heating.

Section 5.504.6 Required Electric End Uses, is hereby added to the 2022 California Green Building Standards Code to read:

Exception: Solar thermal systems for pool, spa heating, domestic hot water, service hot water and space heating.

15.23.050 Electric-Readiness and Energy Storage Prewiring Section 4.504.7 Electric-Readiness is hereby added to the 2022 California Green Building Standards Code to read:

Ordinance 529
Green Building Code

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Section 4.504.7 Electric-Readiness. In newly constructed mixed-fuel residential and hotel/motel buildings, where natural gas- or propaneplumbed systems and appliances are installed, raceways and electrical capacity shall be installed for future electrification of each system or appliances. Electric ready measures include panel capacity and raceways (or conductors) from the electrical panel(s) to the location of each gas outlet sufficiently sized to meet future electric power requirements at the time of construction so that wall penetrations and demolition work is avoided at or minimized when the systems and appliances are converted to electric-powered systems. The locations of specific gas appliances shall be made electric-ready as follows:
1) Combined Cooktop and Oven or Stand Alone Cooktop. Buildings plumbed for natural gas or propane equipment shall meet the requirements of the California Energy Code, Title 24, Part 6, Section 150.0(u).
2) Stand Alone Cooking Oven. Buildings plumbed for natural gas or propane equipment shall include the following components for each gas terminal or stub out:
a. A dedicated 240 volt, 20 amp or greater receptacle within three (3) feet of the appliance and accessible with no obstructions; b. The electrical receptacle shall be labeled with the words "For Future Electric Oven" and be electrically isolated; and c. A double pole circuit breaker in the electrical panel labeled with the words "For Future Electric Oven".
3) Any other gas appliances and equipment shall be deemed electric ready by a licensed design professional associated with the project, who shall provide calculations and documentation that the design includes bus bar capacity, raceway or conductor capacity, and space necessary for the installation of electrical equipment that can serve the intended function of the gas equipment.

Section 4.504.8 Energy Storage Pre-wiring is hereby added to the 2022 California Green Building Standards Code to read:

Section 4.504.8 Energy Storage Pre-wiring

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Section 120.11, as amended.

2. All newly constructed high-rise residential buildings shall be prewired for the installation of battery storage to accommodate a future storage system that meets the requirements of California Energy Code, Title 24, Part 6, Section 170.2(h), where the assumed size of the PV system shall be as specified in the California Energy Code, Title 24, Part 6, Section 120.11, as amended.

Section 5.504.7 Electric-Readiness is hereby added to the 2022 California Green Building Standards Code to read:

Ordinance 529
Green Building Code

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3) Any other gas appliances and equipment shall be deemed electric ready by a licensed design professional associated with the project, who shall provide calculations and documentation that the design includes bus bar capacity, raceway or conductor capacity, and space necessary for the installation of electrical equipment that can serve the intended function of the gas equipment.

Section 5.504.8 Energy Storage Pre-wiring is hereby added to the 2022 California Green Building Standards Code to read:

A4.106.8.1 New one- and two-family dwellings and townhouses with private garages.

Tier 1 and Tier 2. For each dwelling unit, a dedicated 208/240- volt branch circuit shall be installed in the raceway required by Section

For each dwelling unit with two or more parking spaces, at least one EV Capable Space shall be provided.

All electrical components related to this section shall be installed in accordance with the California Electrical Code.

Ordinance 529
Green Building Code

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Section 4.106.4.4 EV Chargers, is hereby added to the 2022 California Green Building Standards Code to read:

4.106.4.4 EV Chargers.

For any newly constructed multifamily building, at least 25 percent of the total number of required parking spaces for all types of parking facilities, but in no case less than one, shall have electric vehicle supply equipment installed. Each such space shall be equipped with fully operational Level 2 electric vehicle supply equipment (EVSE) or a Direct Current Fast Charger (DCFC), except at least one space shall be provided with a Level 2 EVSE. All of the remaining parking spaces shall be EV capable spaces, capable of supporting future Level 2 EVSE.

Calculations for the required number of EVSE spaces shall be rounded up to the nearest whole number.

For any newly constructed hotel or motel building, at least 25 percent of the total number of required parking spaces for all types of parking facilities, but in no case less than one, shall have Level 2 electric vehicle supply equipment (EVSE) installed. Each such space shall be equipped with fully operational Level 2 electric vehicle supply equipment (EVSE) or a Direct Current Fast Charger (DCFC), except at least one space shall be provided with a Level 2 EVSE. All of the remaining parking spaces shall be EV capable spaces, capable of supporting future Level 2 EVSE. Calculations for the required number of EVSE spaces shall be rounded up to the nearest whole number.

Section 5.106.5.3.2.1 Additional electric vehicle charging station (EVCS) requirements, is hereby added to the 2022 California Green Building Standards Code to read:

5.106.5.3.2.1 Additional electric vehicle charging station (EVCS) requirements.

For any newly constructed nonresidential building, at least 20 percent of the total number of required parking spaces for all types of parking facilities, but in no case less than one, shall have electric vehicle supply equipment installed. Each such space shall be equipped with Ordinance 529
Green Building Code

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fully operational Level 2 electric vehicle supply equipment (EVSE) or a Direct Current Fast Charger (DCFC), except at least one space shall be provided with a Level 2 EVSE. At least 35 percent of the remaining parking spaces shall be EV capable spaces, capable of supporting future Level 2 EVSE. Calculations for the required number of EVSE spaces shall be rounded up to the nearest whole number.

SECTION 4. SEVERABILITY.

The City Council declares that it would have passed this Ordinance, and each Provision therein, whether any one or more Provisions be declared illegal, invalid or unconstitutional.

SECTION 5. PUBLICATION AND EFFECTIVE DATE.

AYES:

NOES:

ABSTAIN:

ABSENT:
___________________________
LESA HEEBNER, Mayor
APPROVED AS TO FORM: ATTEST
Ordinance 529
Green Building Code

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______________________________ ____________________________ JOHANNA N. CANLAS, City Attorney ANGELA IVEY, City Clerk CITY COUNCIL ACTION:
______________________________________________________________________ ______________________________________________________________________ AGENDA ITEM # C.1

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Gregory Wade, City Manager
MEETING DATE: February 22, 2023
ORIGINATING DEPT: Finance Department
SUBJECT: Fiscal Year 2021-22 Annual Comprehensive Financial Report (ACFR)
BACKGROUND:

The City’s financial policies specify that each year the City’s financial statements are to be audited by a firm of independent Certified Public Accountants (CPA’s) and that the auditor’s opinion is to be included in the financial statements as is required by Generally Accepted Accounting Principles (GAAP). An independent audit is essential to demonstrate the accountability of government officials’ use of public resources and provides a basis for user acceptance of the audited financial statements.

This item is before the City Council (Council) to accept and file the Fiscal Year (FY) 2021- 22 Annual Comprehensive Financial Report (ACFR) (Attachment 1) and receive a presentation by the City’s Independent Auditors, Lance, Sol & Lunghard, LLP, on the City’s financial condition as of June 30, 2022.

DISCUSSION:

Staff is presenting the FY 2021-22 ACFR for Council’s review. The ACFR is a detailed report that goes beyond the requirements of GAAP and beyond any legal reporting requirements. The ACFR covers all funds of the government and all the financial transactions during the applicable fiscal year. It is considered a general-purpose report as its contents are intended to meet the needs of a range of user groups.

Highlights of the FY 2021-22 ACFR include the following:
• The City’s net position increased to $94,454,379, or by $6,897,654, as a result of FY2022 operations.
• Governmental net position (which does not include proprietary funds such as Sanitation) equaled $44,657,578.

February 22, 2023
FY 2021-22 ACFR

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• The total revenues from all sources were $38,352,411. • The total cost of all City programs was $31,454,757.
• The General Fund reported an excess of revenues over expenditures and other financing sources and uses by $2,635,536.
• The General Fund’s actual resources received exceeded the final revenue budget by $882,683 while actual expenditures were $1,863,659 less than final budget before other financing sources and uses.

GASB Statements Regarding Pension Liabilities
Governmental Accounting Standards Board (GASB) requires government entities to report net pension liabilities in their Statement of Net Position. The standard, GASB Statement No. 68 (GASB 68), Accounting and Financial Reporting for Pensions, was issued by GASB on June 12, 2012.

Under GASB 68, governmental entities need to address net pension liability in their financial statements. Net pension liability refers to the difference between the total pension liability, defined as the present value of the projected benefit payments to employees based on past service, and the pension’s assets, generally considered to be the investments set aside to pay retirees and current employees. Since the City takes part in a cost-sharing plan, it needs to recognize its proportionate share of the collective net pension liability and expense for the plan.

GASB 68 also requires governments to immediately recognize annual service costs and interest on the pension liability, as well as the effects of any changes in benefit terms. Since pension expenses are now viewed over the service period of the plan member, governments also have to deal with how changes in economic and demographic assumptions used to project benefits affect the pension, as well as with differences between assumptions and actual experiences. Governmental entities also need to recognize, over a five-year period, the effects of differences between expected and actual investment returns.

The provisions in GASB 68 were effective for financial statements for periods beginning after June 15, 2014.

As of June 30, 2022, the City of Solana Beach reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows, with a comparison to the net pension liability of each Plan:

Proportionate Share of Net Pension Liability
FY 2020-21 FY 2021-22 Difference
Miscellaneous $ 6,151,557 $ 3,593,385 $(2,558,172)
Safety 10,505,198 6,861,102 (3,644,096)
$ 16,656,755 $ 10,454,487 $(6,202,268)
February 22, 2023
FY 2021-22 ACFR

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The City of Solana Beach’s net pension liability of each of the Plans is measured as of June 30, 2021, 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, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion 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 net position as a percentage of the total pension liability (funded percentage) for both Plans as of June 30, 2021 is 88.29%.

More detailed information regarding the implementation of GASB 68 can be found in the following sections of the ACFR:

1. Note 6, City Employees Retirement Plan – Pension Plans, beginning on page 60

2. Schedule of Proportionate Share of the Net Pension Liability on page 87

3. Schedule of Plan Contributions on page 88
GASB Statements Regarding Other Post-Employment Benefits (OPEB) During the fiscal year ended June 30, 2018, the City implemented GASB Statement No. 75 (GASB 75), Accounting and Financial Reporting for Post-Employment Benefits other than Pensions which is the “employer” reporting of the plan in its financial statements.

GASB 75 reports a liability in the ACFR on the statement of net position for the OPEB liability which is similar to how net pension liability is reported for pensions.

The primary objective of this statement was to improve accounting and financial reporting by state and local governments for post-employment benefits other than pensions (OPEB). It also improved information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. This Statement replaced the requirements of Statements No. 45, Accounting for Financial Reporting by Employers for Post-Employment Benefits other than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans.

The City provides OPEB in the form of a modest retiree healthcare benefit. The City’s net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 that was rolled forward to determine the June 30, 2022 total OPEB liability, based on the actuarial methods and assumptions as explained in Note 7 beginning on page 65 in the ACFR.

In FY 2018-19, the Council changed its funding policy for the City’s OPEB liability. Before FY 2018-19, the Council would use a portion of a fiscal year’s ending surplus to be placed in the Public Agency Retirement Services (PARS) Section 115 irrevocable benefit trust (Trust) for OPEB. As part of the adoption of the FYs 2019-20 and 2020-21 budgets, both approved by Council on June 12, 2019, a funding policy was established to fund the OPEB liability by paying the full Actuarial Determined Contribution (ADC) on an annual basis.

February 22, 2023
FY 2021-22 ACFR

Page 4 of 8 ends

The total OPEB liability as of June 30, 2022 increased by $37,469 to $3,620,210.

Combined with a decrease of $54,860 in the Fiduciary Net Position (FNP), or monies held by the PARS Trust, the City’s Net OPEB Liability (NOL) realized a total increase of $92,329 from FY 2020-21 to FY 2021-22 as shown in the following table:

Net OPEB Liability
6/30/2021 6/30/2022 Difference
Total OPEB Liability (TOL) $ 3,582,741 $ 3,620,210 $ 37,469 Fiduciary Net Position (FNP) 1,258,881 1,204,021 (54,860) Net OPEB Liability (NOL) $ 2,323,860 $ 2,416,189 $ 92,329 Funded Status (FNP/TOL) 35.1% 33.3%
Discount Rate 6.00% 5.50%
More detailed information regarding the implementation of GASB 75 can be found in the following sections of the ACFR:

1. Note 7, Other Post-Employment Benefits, beginning on page 65

2. Schedule of Changes in Net OPEB Liability and Related Ratios on page 91

3. Schedule of Plan Contributions on page 92

4. Schedule of Investment Returns on page 93
Fund Balance
In FY 2010-11, the City adopted the provisions of GASB Statement No. 54 (GASB 54), Fund Balance and Governmental Fund Type Definitions. GASB 54 changed how Fund Balances were previously reported in fiscal years prior to FY 2010-11 and has established Fund Balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The Governmental Fund statements conform to this classification and information regarding Fund Balances can be found in Note 12 on page 75 of the ACFR.

Also included in Note 12 on page 76 of the ACFR are the General Fund GASB 54 Fund Balance Classifications, which provide detail about the General Fund Balance categories.

The Unassigned category amount of $9,289,801 includes the Fund Balance amount of $(1,490,620) for the Real Property Acquisition Fund. This amount reflects the balance due to the Sanitation Fund of $1,665,460, plus $174,840 of cash available for future property acquisitions.

The loan balance from the Sanitation Fund is reported as a liability on the General Fund’s balance sheet as an “Advances from Other Funds”. The loan payable to the Sanitation fund was made at an annual interest rate of 2.78% for seven years with annual payments equal to $445,699. As payments are made each year to the Sanitation Fund, the loan February 22, 2023
FY 2021-22 ACFR

Page 5 of 8 ends

amount will decrease and the Fund Balance amount in the Real Property Acquisition Fund will increase and eventually be zero when the loan is fully paid in FY 2025/26.

Fund Activity
General Fund
The General Fund had the following activity for FY 2021-22:

Total Revenues $ 23,935,023
Total Expenditures (21,558,090)
Other Financing
Sources 258,603
Other Financing
(Uses) -
Net Change in Fund Balance $ 2,635,536
Fund Balance
Beginning of Year 17,545,954
End of Year $ 20,181,490
Non-Spendable 136,395
Restricted 3,218,592
Committed 1,295,357
Assigned 6,241,345
Unassigned 9,289,801
Fund Balance-June 30, 2022 $ 20,181,490
The net change in the General Fund’s fund balance from FY 2020-21 to FY 2021-22 is $2,635,536 using the GASB 54 fund balance classifications as reflected in the following table:
06/30/21 06/30/22 Difference
Non-Spendable $ 54,212 $ 136,395 $ 82,183
Restricted 3,245,475 3,218,592 (26,883)
Committed 901,576 1,295,357 393,781
Assigned 6,206,689 6,241,345 34,656
Unassigned GF 9,131,425 10,780,421 1,648,996
Real Property Acquis (1,993,423) (1,490,620) 502,803
Total Unassigned 7,138,002 9,289,801 2,151,799
Total General Fund $ 17,545,954 $ 20,181,490 $ 2,635,536 February 22, 2023
FY 2021-22 ACFR

Page 6 of 8 ends

The General Fund’s revenue, expenditures, and fund balance as reported in the ACFR includes the City’s internal service funds. The net change in the General Fund’s fund balance, including the internal service fund designations, is reflected in the following table:

06/30/21 06/30/22 Difference
General Fund $ 11,642,931 $ 14,451,977 $ 2,809,046
Self-Insurance 618,490 486,289 (132,201)
Workers Comp 696,923 734,017 37,094
Asset Replacement 2,391,099 1,951,582 (439,517)
Facilities Replacement 741,773 623,096 (118,677)
OPEB/Pensions 3,448,161 3,425,149 (23,012)
Real Property Acquisition (1,993,423) (1,490,620) 502,803 Total General Fund $ 17,545,954 $ 20,181,490 $ 2,635,536 Other Governmental Funds
The Special Revenue Funds, Capital Improvement Funds, and Debt Service Funds had the following combined activity for FY 2021-22:

Total Revenues $ 8,392,319
Total Expenditures (4,024,905)
Other Financing Sources -
Other Financing (Uses) (258,603)
Net Change in Fund Balance $ 4,108,811
Fund Balance
Beginning of Year 10,464,006
End of Year $ 14,572,817
Non-Spendable

47,545
Restricted 14,752,364
Committed -
Assigned -
Unassigned (227,092)
Fund Balance-June 30, 2022 $ 14,572,817
February 22, 2023
FY 2021-22 ACFR

Page 7 of 8 ends

The Proprietary Funds, which include Sanitation and Other Proprietary Funds, had the following activity for FY 2021-22 as shown in the following table:

Total Revenues $ 6,183,531
Total Expenditures (3,679,154)
Non-Operating Revenues 201,738
Non-Operating Expenditures (985,101)
Change in Net Position $ 1,721,014
Net Position
Beginning of Year 48,075,787
End of Year $ 49,796,801
Net Position
Net Investment in Capital Assets 11,656,188
Restricted for Debt Service -
Unrestricted 38,140,613
Net Position-June 30, 2022 $ 49,796,801
The Management’s Discussion and Analysis Section of the ACFR provides a more indepth view of the City’s current financial health. The Statement of Auditing Standards (SAS) No. 115, Communication of Internal Control Related Matters Identified in an Audit (Attachment 2), received from the City’s auditor states that there were no material instances of noncompliance, no material weaknesses in internal controls, and no reportable conditions.

In SAS No. 114, the Auditor’s Communication with Those Charged with Governance (Communication) (Attachment 3) regarding their responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, the auditors reported on the implementation of various GASBs, among other findings.

The City’s audit was conducted in conformity with Generally Accepted Auditing Standards (GAAS). These are the standards that a CPA must follow when auditing financial statements. In an independent audit, the CPA expresses an opinion as to whether the financial statements present fairly the financial position and results of operations for the year ended. The Fiscal Year 2021-22 audit report contains this unmodified opinion.

The City was proud to accept the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for the ACFR for the fiscal year ended June 30, 2021. Staff is confident that this report will again earn this distinction.

CEQA COMPLIANCE STATEMENT:

Not a project as defined by CEQA.

February 22, 2023
FY 2021-22 ACFR

Page 8 of 8 ends

FISCAL IMPACT:

None with this action.

WORK PLAN:

N/A
OPTIONS:
• Approve Staff recommendation.
• Provide alternative direction.

DEPARTMENT RECOMMENDATION:

Staff recommends that the City Council:

1. Accept and file the City of Solana Beach Annual Comprehensive Financial Report (ACFR) for the fiscal year July 1, 2021 – June 30, 2022.

2. Accept and file the Communication of Internal Control Related Matters Identified in an Audit letter.

3. Accept and file The Auditor’s Communication with Those Charged with Governance letter.

CITY MANAGER’S RECOMMENDATION:

Approve Department Recommendation.
_________________________
Gregory Wade, City Manager
Attachments:

1. ACFR Fiscal Year Ended June 30, 2022

2. Communication of Internal Control Related Matters Identified in an Audit letter

3. The Auditor’s Communication with Those Charged with Governance letter DRAFT
ATTACHMENT 1

CITY OF SOLANA BEACH

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

SOLANA BEACH

CALIFORNIA

FISCAL YEAR ENDING
JUNE 30, 2022
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Table 2
City of Solana Beach Changes in Net Position
Governmental Business Total
Activities Activities
2022 2021 2022 20:21 2022 2021
Revenues:

Program revenues:

Charges for services s 3,637,223 s 2,269,672 s 5,818,187 s 9,243,320 s 9,455,410 S 11,512,992 Operating grants
and contributions 3,287,775 1,913,915 3,287,775 1,913,915 Capital grants
and contributions 301,580 301,580
General revenues:

Property tax 10,523,133 10,093,847 10,523,133 10,093,847 Sales & Use Tax 4,413,265 3,689,566 4,413,265 3,689,566 Transient Tax 2,575,173 1,457,156 2,575,173 1,457,156
Franchise Tax 873,791 789,365 873,791 789,365
Other taxes 3,880,489 3,745,720 3,880,489 3,745,720
Use of r.toney and Property (399,689) 631,813 35,005 1:24,888 (364,684) 756,701 Other 3,342,715 3,121,247 365,344 37,296 3,708,059 3,158,543 Total revenues 32,133,875 28,013,881 6,218,536 9,405,504 38,352,411 37,419,385 Expenses:

General government 4,569,515 5,537,474 4,569,515 5,537,474 Public safety 13,906,293 13,116,915 13,906,293 13,116,915 Public works 5,411,937 4,665,830 5,411,937 4,665,830
Community Development 1,505,023 1,506,502 1,505,023 1,506,502 Community Services 1,218,243 1,193,256 1,218,243 1,193,256 Interest 346,224 356,001 346,224 356,001
Sanitation 4,308,057 3,891,241 4,308,057 3,891,241
Solana Energy 189,465 3,841,312 189,465 3,841,312
Total expenses 26,957,235 26,375,978 4,497,522 7,732,553 31,454,757 34,108,531 lncrease/(decrease)
in net position 5,176,640 1,637,903 1,721,014 1,672,951 6,897,654 3,310,854 Net position - July 1 39,480,938 37,843,035 48,075,787 46,402,836 87,556,725 84,245,871 Net position - June 30 S 44,657,578 S 39,480,938 S 49,796,801 S 48,075,787 S 94,454,379 S 87,556,725 x 7D[UHYHQXHLQFOXGLQJ3URSHUW\6DOHV 8VH7UDQVLHQW2FFXSDQF\)UDQFKLVHDQG2WKHU

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10 Inves
Income
4%
tment
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Sources of Revenue
Other
Taxes 12%
Transient &
Franchise
Tax8%
Interest on
LT Debt, 1%
Program Expenses
Comm
Public
Safety, 52%
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Net Cost of Governmental Activities
Total Cost Program Net Cost
of Services Revenues of Services
2022 2021 2022 2021 2022 2021
General government $ 4,569,515 $ 5,537,474 $ 16,529 $ 393,455 $ (4,552,986) $ (5,144,019) Public safety 13,906,293 13,116,915 837,769 791,551 (13,068,524) (12,325,364) Public works 5,411,937 4,665,830 4,239,591 1,708,329 (1,172,346) (2,957,501) Community development 1,505,023 1,506,502 1,162,512 1,082,510 (342,511) (423,992) Community services 1,218,243 1,193,256 668,597 509,322 (549,646) (683,934) Interest on long-term debt 346,224 356,001 (346,224) (356,001) Totals $ 26,957,235 $ 26,375,978 $ 6,924,998 $ 4,485,167 $ (20,032,237) $ (21,890,811) 20,000,000
15,000,000
10,000,000
5,000,000
(5,000,000)
(10,000,000)
(15,000,000)
Cost of Services, Program Revenues & Net Cost Governmental Activities
Comm
Gen Govt Public Safety Public Works Development Comm Services I
I - 11
-
-- ---
■ Cost of Services • Program Revenues Net Cost
Interest
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Sanitation
Solana Energy Alliance
Total Business Activities
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
S-
$(1,000,000)
Table 3
Net Cost of Business Activities
Total Cost Program Net Cost
of Services Revenue of Services
2022 2021 2022 2021 2022
$4,308,057 $ 3,891 ,241 $ 5,816,828 $5,676,286 $ 1,508,771 189,465 3,841,312 1,359 3,567,034 (188,106)
$ 4,497,522 $ 7,732,553 $5,818,187 $ 9,243,320 $ 1,320,665 Cost of Services, Program Revenues & Net Cost
Business Activities
Fiscal Year 2022
2021
$ 1,785,045
(274,278)
$ 1,510,767
Sanitation Solana Energy Alliance
■ Cost of Services ■ Program Revenues ■ Net Cost
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Table 4
City of Solana Beach Governmental Funds
Changes in Fund Balances (In Thousands)
General Fund Special Revenue Fund Capital Projects Fund Other Governmental Total Transnet CityCIP Funds 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
Revenues:

Taxes, Licenses, Fees
and Intergovernmental $ 20,448 $ 18,175 $ 561 $ 406 $ $ $ 5,354 $ 3,644 $ 26,362 $ 22,225 Charges for ~eivices 1,043 1,006 1,056 71 655 373 2,754 1,450 Other 2,444 3,861 (3) 254 159 516 (24) 3,211 3,997
Total Revenues 23,935 23,042 558 407 1,310 230 6,525 3,993 32,327 27,672 Expenditures:

Current 21 ,188 20,160 36 3 2 5 2,380 2,657 23,607 22,825 Capital Outlay 370 507 76 118 463 610 522 566 1,431 1,800 Debt 325 325 221 350 545 675
Total Expenditures 21 ,558 20,667 437 446 465 615 3,123 3,573 25,583 25,300 Net Transfers 259 (283) 1,182 (1,440) 283
Net Change in
Fund Balances $ 2,636 $ 2,092 $ 120 $ (39) $ 2,026 $ (384) $ 1,962 $ 703 $ 6,744 $ 2,371 7KHUH ZDV D VLJQLILFDQW LQFUHDVH LQ UHYHQXH LQ WKH &DSLWDO 3URMHFWV &LW\ &,3 )XQG IURP WKRXVDQGLQ)<WRPLOOLRQLQ)<7KLVZDVGXHWRWKHUHFHLSWRIWUDQVSRUWDWLRQ LPSDFWIHHVIRUDODUJHFRPPHUFLDOUHVLGHQWLDOFRQVWUXFWLRQSURMHFWORFDWHGLQWKHFRDVWDODUHDRI 6RODQD%HDFK
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Table 6
City of Solana Beach Outstanding Debt at Year-End
Governmental Busine ss Total Activities Activities
2022 2021 2022 2021 2022 2021
Refunding lease Bond $ 145,000 $ 287,700 $ - $ - $, 145,000 $, 287,700 Loan Payable 349,819 406,650 349,819 406,,660
SEJPA Loan Payable-2017 10,385,000 10,615,000 10,385,000 10,6-15,000 201 7 Wastewater
Refunding Bond 5,520,000 5,820,000 5,520,000 5,820,000
Tran s Net Bond 5,500,000 5,500,000 5,500,000 5,500,000 Bond premiums 357,766, 383,321 357,766, 383,321
Bond discounts (577) (1,643 ) (577) {1,643)
Cl aims and judgements 1,098 ,000 1,177,000 1,098 ,000 1,177,000 Compensated
abs ences 54,6,979 472,924 52,449 51 ,302 599,428 524,22-6 $ 7,639,221 $ 7,842,631 $ 16-,315,215 $ 16,869,6,23 $ 2'3,954,436 $ 24,712,254 1(;7<($5¶6%8'*(7$1'(&2120,&)$&7256
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133 DRAFT
2013 2014 2015 2016 2017
Government activities
Net Investment in Capital
Assets $ 34,095,894 39,384,623 $ 32,415,836 $ 30,365,711 $ $ 28,412,121 Restricted 4,688,776 5,183,814 4,979,850 5,825,595 6,619,853 Unrestricted 1,418,151 6,871,872 (85,816) 1,230,929 1,795,456 Total governmental activities net
position $ 46,151,580 45,491,550 $ 37,309,870 $ 37,422,235 $ $ 36,827,430 Business-type activities
Net Investment in Capital
Assets $ 6,324,862 5,682,518 $ 6,798,584 $ 5,594,350 $ $ 6,195,352 Restricted - - - - -
Unrestricted 25,769,871 27,155,489 26,759,779 29,711,194 32,866,729 Total governmental activities net
position $ 33,480,351 31,452,389 $ 33,558,363 $ 35,305,544 $ $ 39,062,081 Primary government
Net Investment in Capital
Assets $ 40,420,756 45,067,141 $ 39,214,420 $ 35,960,061 $ $ 34,607,473 Restricted 4,688,776 5,183,814 4,979,850 5,825,595 6,619,853 Unrestricted 27,188,022 34,027,361 26,673,963 30,942,123 34,662,185 Total governmental activities net
position $ 79,631,931 76,943,939 $ 70,868,233 $ 72,727,779 $ $ 75,889,511 Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003.

CITY OF SOLANA BEACH
Fiscal Year
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
134 DRAFT
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$ 29,396,878 27,241,251 $ 26,666,266 $ 26,653,123 $ $ 26,396,682 11,238,745 9,139,181 12,664,581 14,173,748 17,970,956
(3,911,422) (2,320,375) (1,487,812) (1,345,933) 289,940 $ 36,724,201 34,060,057 $ 37,843,035 $ 39,480,938 $ $ 44,657,578 $ 8,892,771 5,929,088 $ 12,052,987 $ 11,185,890 $ $ 11,656,188 49 54 46 - -
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$ 44,603,337 42,651,157 $ 46,402,836 $ 48,075,787 $ $ 49,796,801 $ 38,289,649 33,170,339 $ 38,719,253 $ 37,839,013 $ $ 38,052,870 11,238,794 9,139,235 12,664,627 14,173,748 17,970,956
31,799,095 34,401,640 32,861,991 35,543,964 38,430,553
$ 81,327,538 76,711,214 $ 84,245,871 $ 87,556,725 $ $ 94,454,379 Fiscal Year
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Expenses
Governmental Activities:

General government $ 3,521,929 $ 3,712,734 $ 3,344,429 $ 3,944,303 $ 4,309,372 Public safety 8,416,330 8,177,235 8,441,144 9,162,345 9,628,140 Public works 5,008,665 5,070,916 5,181,223 5,438,407 5,487,183 Community development 957,303 1,361,588 1,281,059 1,378,130 1,745,101 Community services 604,445 579,088 622,608 627,748 1,122,128 Interest on long-term debt 78,156 439,918 388,144 398,408 389,077 Total Governmental Activities expenses $ 19,518,323 18,409,984 $ 19,258,607 $ $ 20,949,341 $ 22,681,001 Business-Type Activities:

Sanitation $ 2,855,368 3,456,455 $ 4,566,357 $ 3,568,901 $ 1,602,359 $ Solana Energy Alliance Fund - - - - -
Total Business-Type Activities Expenses $ 2,855,368 3,456,455 $ 4,566,357 $ $ 3,568,901 $ 1,602,359 Total Primary Government Expenses $ 22,373,691 21,866,439 $ 23,824,964 $ $ 24,518,242 $ 24,283,360 Program Revenues
Governmental Activities:

Charges for services:

General government $ - $ - $ - $ - $ -
Public safety 376,156 402,670 464,533 578,282 620,990
Public works 511,843 743,210 238,587 416,524 449,962
Community development 648,280 830,429 852,578 928,065 1,252,126 Community services 357,877 303,070 347,698 365,289 400,353 Operating Contributions:

General government - - - - -
Public safety 270,428 286,687 285,399 270,152 198,615
Public works 583,136 1,577,961 920,807 1,045,301 1,241,379 Community development - - 109,689 200,388 -
Community services - - - - 129,324
Capital Contributions and Grants:

General government - - - - -
Public safety 162,672 129,740 53,091 160,372 158,370
Total Governmental Activities Program Revenues $ 4,273,767 2,910,392 $ 3,272,382 $ $ 3,964,373 $ 4,451,119 Business-Type Activities:

Charges for services:

Sanitation $ 4,775,489 4,708,765 $ 4,949,069 $ 5,151,671 $ 5,255,483 $ Solana Energy Alliance Fund - - - - -
Total Business-Type Activities Program Revenues 4,775,489 4,708,765 4,949,069 5,151,671 5,255,483 Total Primary Government Program Revenues $ 9,049,256 7,619,157 $ 8,221,451 $ $ 9,116,044 $ 9,706,602 Net (Expense)/Revenue
Governmental Activities $ (15,499,592) $ (15,244,556) $ (15,986,225) $ (16,984,968) $ (18,229,882) Business-Type Activities 1,252,310 1,920,121 382,712 1,582,770 3,653,124 Total primary Government Net Expense $ (13,324,435) (14,247,282) $ (15,603,513) $ $ (15,402,198) $ (14,576,758) General Revenues and Other Charges in Net Position
Governmental Activities:

Taxes:

Property taxes, levied for general purpose $ 6,655,138 $ 6,880,916 $ 7,247,202 $ 7,705,956 $ 8,095,383 Transient occupancy taxes 1,186,197 1,220,075 1,467,373 1,605,685 1,740,208 Sales taxes 2,814,702 3,077,691 2,808,203 3,255,104 3,127,803 Franchise taxes 698,672 714,991 765,995 736,042 733,354 Other taxes 2,736,146 2,643,515 2,747,073 2,797,559 2,868,629 Use of money and property 84,903 137,906 136,763 261,446 283,828 Other 1,399,850 722,094 914,672 735,521 785,872
Total Governmental Activities $ 15,904,586 15,068,210 $ 16,087,281 $ $ 17,097,313 $ 17,635,077 Business-Type Activities:

Use of money and property $ 78,615 $ 71,541 $ 71,973 $ 115,321 $ 88,940 Other 36,300 46,470 28,939 49,090 14,473
Total Business-Type Activities 107,841 125,085 100,912 164,411 103,413 Total Primary Government $ 16,012,427 15,193,295 $ 16,188,193 $ $ 17,261,724 $ 17,738,490 Changes in Net Position
Governmental Activities $ (431,382) $ 660,030 $ 101,056 $ 112,345 $ (594,805) Business-Type Activities 1,377,395 2,027,962 483,624 1,747,181 3,756,537 Total Primary Government $ 2,687,992 946,013 $ 584,680 $ 1,859,526 $ $ 3,161,732 Fiscal Year

CITY OF SOLANA BEACH
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
136 DRAFT
2018 2019 2020 2021 2022
$ 4,101,170 $ 3,650,982 $ 4,985,418 $ 5,537,474 $ 4,569,515 11,050,684 10,539,671 12,629,778 13,116,915 13,906,293
5,944,432 5,937,131 4,887,985 4,665,830 5,411,937
1,754,910 1,482,428 1,585,952 1,506,502 1,505,023
1,178,128 730,645 1,220,410 1,193,256 1,218,243
368,495 381,634 363,326 356,001 346,224
$ 23,667,848 23,452,462 $ $ 25,672,869 $ 26,375,978 $ 26,957,235 $ 2,100,256 $ 4,204,504 $ 4,221,307 $ 3,891,241 $ 4,308,057 5,210,816 390,533 4,350,085 3,841,312 (126,572)
$ 2,490,789 $ 9,415,320 $ 8,571,392 $ 7,732,553 $ 4,181,485 $ 33,083,168 25,943,251 $ $ 34,244,261 $ 34,108,531 $ 31,138,720 $ 194,122 - $ 205 $ 91,875 $ 31,397 $
581,313 577,351 401,633 325,042 384,525
1,005,828 698,999 358,450 493,597 1,566,345
1,300,411 1,169,232 1,190,562 1,082,510 1,274,370
335,828 336,079 22,844 276,648 507,312
- - - - (14,868)
186,145 177,936 199,300 466,509 453,244
1,106,636 1,404,721 889,429 1,214,732 2,673,246
- 100,000 - - -
148,747 139,416 80,000 232,674 161,285
- - - - (111,858)
298,205 420,005 345,162 301,580 -
$ 4,856,833 $ 5,324,141 $ 3,487,585 $ 4,485,167 $ 6,924,998 $ 5,415,690 $ 5,592,045 $ 5,588,249 $ 5,676,286 $ 5,816,828 5,202,375 494,307 4,178,287 3,567,034 1,359
5,909,997 10,794,420 9,766,536 9,243,320 5,818,187
$ 16,118,561 10,766,830 $ $ 13,254,121 $ 13,728,487 $ 12,743,185 $ (18,343,707) (18,595,629) $ $ (22,185,284) $ (21,890,811) $ (20,032,237) 3,419,208 1,379,100 1,195,144 1,510,767 1,636,702
$ (16,964,607) (15,176,421) $ $ (20,990,140) $ (20,380,044) $ (18,395,535) $ 8,586,838 $ 9,070,200 $ 9,465,402 $ 10,093,847 $ 10,523,133 1,827,753 2,019,005 1,456,897 1,457,156 2,575,173
3,191,410 3,502,561 3,291,805 3,689,566 4,413,265
792,575 723,164 751,324 789,365 873,791
3,170,331 3,547,175 3,619,856 3,745,720 3,880,489
1,100,795 286,867 1,132,930 631,813 (399,689)
975,510 722,186 3,585,904 3,121,247 3,342,715
$ 21,007,821 18,508,549 $ $ 23,304,118 $ 23,528,714 $ 25,208,877 $ 557,179 81,629 $ 423,002 $ 124,888 $ 35,005 $
15,901 88,239 181,353 37,296 49,307
573,080 169,868 604,355 162,184 84,312
$ 21,580,901 18,678,417 $ $ 23,908,473 $ 23,690,898 $ 25,293,189 $ 2,664,114 (87,080) $ 1,118,834 $ 1,637,903 $ 5,176,640 $ 3,589,076 1,952,180 1,799,499 1,672,951 1,721,014
$ 3,501,996 $ 4,616,294 $ 2,918,333 $ 3,310,854 $ 6,897,654 Fiscal Year
137 DRAFT
2013 2014 2015 2016 2017
General Fund
Nonspendable $ 9,276 $ 7,523 $ 9,382 $ 7,471 $ 20,164
Restricted - - 508,897 - 893,185
Committed 278,377 324,083 454,048 787,790 914,846
Assigned 4,579,527 5,102,543 5,324,048 5,520,890 5,690,381 Unassigned 4,014,144 4,369,152 5,580,686 6,200,244 6,805,201 Total General Fund $ 9,803,301 8,881,324 11,368,164 13,025,292 14,323,777 All Other Governmental Funds
Nonspendable $ - $ - $ - $ - $ -
Restricted 4,588,670 5,107,900 4,979,850 5,316,698 5,726,668 Assigned 525,735 425,416 589,120 849,917 1,385,099
Unassigned (5,333,420) (222,713) (213,005) (184,544) (336,475) Total all other Governmental Funds (219,015) $ 5,310,603 5,355,965 5,982,071 6,775,292 Fiscal Year

CITY OF SOLANA BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis Of Accounting)
138 DRAFT
2018 2019 2020 2021 2022
$ 23,402 72,579 $ 52,665 $ 54,212 $ 136,395 $
1,743,908 1,294,957 2,422,056 3,245,475 3,218,592
1,436,307 1,015,354 1,179,507 901,576 1,295,357
6,041,593 5,805,890 6,349,702 6,206,689 6,241,345
4,588,069 7,385,736 5,450,148 7,138,002 9,289,801
13,833,279 15,574,516 15,454,078 17,545,954 20,181,490
$ - 200 $ - $ - $ 47,545 $
9,494,837 7,844,224 10,242,525 10,928,273 14,752,364
- - - - -
(112,596) (234,689) (58,138) (464,267) (227,092)
9,382,241 7,609,735 10,184,387 10,464,006 14,572,817
Fiscal Year
139 DRAFT
2013 2014 2015 2016 2017
Revenues:

Taxes and assessments $ 13,046,917 $ 13,135,199 $ 13,727,132 $ 14,719,229 $ 15,109,053 Intergovernmental 2,230,532 3,217,319 2,674,057 3,069,673 3,185,272 Licenses and permits 361,573 429,464 461,687 471,581 527,146 Charges for services 830,907 959,935 1,001,943 1,313,658 1,699,140 Fines and forfeitures 323,961 348,337 392,683 502,921 495,885 Use of money and property 84,903 137,906 136,763 261,466 283,828 Other 1,099,809 1,941,493 961,755 735,521 785,872
Total revenues 17,978,602 20,169,653 19,356,020 21,074,049 22,086,196 Expenditures:

General government 3,057,761 3,085,499 3,222,933 3,500,443 3,777,819 Public safety 7,945,912 8,238,659 8,315,766 8,912,742 9,070,746 Public works 2,075,777 2,215,596 2,322,090 2,463,442 2,509,194 Community development 955,907 1,360,192 1,291,073 1,380,934 1,721,715 Community services 284,884 259,809 275,790 278,481 760,475 Capital outlay 7,638,942 3,452,914 1,773,690 2,190,316 1,473,835 Debt service:

Principal retirement 280,700 155,925 155,930 161,086 288,487 Interest 77,283 439,464 388,523 383,130 392,219
Total expenses 22,317,166 19,208,058 17,745,795 19,270,574 19,994,490 Excess (Deficiency) of Revenues
Over (Under) Expenditures (4,338,564) 961,595 1,610,225 1,803,475 2,091,706 Other financing sources (uses):

Transfers in 742,322 1,319,473 446,865 743,400 1,576,800 Transfers out (742,322) (1,319,473) (446,865) (743,400) (1,576,800) Contributions to Successor Agency (834,007) (10,000) - - - Contributions to OPEB Trust Fund - - (135,000) - -
Long-term debt issued 5,500,000 - 614,759 - -
Total other financing sources (uses) 5,490,000 (834,007) - 479,759 - Net change in fund balances /
net position $ (5,172,571) 6,451,595 1,610,225 2,283,234 2,091,706 Capital assets used in debt
service calculation* $ 7,859,585 $ 3,527,607 $ 1,764,750 $ 2,194,361 $ 1,440,550 Debt service as a percentage of
noncapital expenditures 2.5% 3.8% 3.4% 3.2% 3.7%
* The amount of capital outlay used to calculate the ratio of total debt service expenditures to noncapital expenditures is the same as the reconciling item for capital outlay in the reconciliation between the government-wide statement of activities and the statement of revenues, expenditures and changes in fund balance.

Fiscal Year

CITY OF SOLANA BEACH
Changes In Fund Balances Of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis Of Accounting)
140 DRAFT
2018 2019 2020 2021 2022
$ 17,275,214 15,945,223 $ 16,842,473 $ 19,775,654 $ 22,265,851 $ 3,665,899 3,498,266 3,284,923 1,916,664 3,322,539
486,891 508,549 345,168 532,496 773,593
2,230,614 1,584,561 1,268,823 1,449,714 2,754,210
502,249 479,933 359,703 244,331 261,932
1,100,795 286,867 1,132,930 631,813 (399,689)
975,510 1,061,983 3,585,904 3,121,247 3,348,906
26,237,172 23,365,382 26,819,924 27,671,919 32,327,342
4,191,376 3,820,029 4,705,339 5,032,268 5,598,530
10,243,546 9,831,070 11,573,438 12,538,907 12,043,209
2,975,518 2,628,777 3,401,680 3,125,907 3,792,133
1,523,428 1,574,333 1,544,402 1,446,878 1,347,528
830,315 328,755 797,410 680,982 825,180
5,763,230 2,417,383 1,692,966 1,800,676 1,430,880
303,971 296,366 316,505 319,071 199,531
374,519 383,487 365,239 355,735 346,004
26,205,903 21,280,200 24,396,979 25,300,424 25,582,995
31,269 2,085,182 2,422,945 2,371,495 6,744,347
2,636,370 997,300 799,915 353,500 2,992,483
(2,636,370) (997,300) (799,915) (353,500) (2,992,483)
- - - - -
- - - - -
- - - - -
- - - - -
31,269 2,085,182 2,422,945 2,371,495 6,744,347
$ 5,754,228 2,432,556 $ 1,697,994 $ 1,723,018 $ 1,537,279 $

3.6% 3.3% 3.0% 2.9% 2.3%
Fiscal Year
141 DRAFT
Less:

Fiscal Residential Commercial Other Tax-Exempt
Year Property Property Property Property
2013 3,053,864 156,019 459,003 -
2014 3,150,064 154,207 457,092 -
2015 3,348,897 159,027 471,453 -
2016 3,549,149 161,797 490,565 -
2017 3,750,959 173,545 504,604 -
2018 3,974,035 182,779 567,922 -
2019 4,237,025 202,769 598,064 -
2020 4,476,935 192,564 618,256 -
2021 4,713,080 201,845 632,197 -
2022 4,907,207 195,653 642,174 -
(a) The County of San Diego does not compile Estimated Actual Valuations N/A - Data not available
Source: San Diego County Assessor 2012/13 - 2021/22 Combined Tax Rolls HdL Coren & Cone.

City of Solana Beach Finance Department

CITY OF SOLANA BEACH
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in thousands of dollars)
142 DRAFT
Taxable Assessed
Total Estimated Value as a
Total Taxable Direct Actual Percentage of
Assessed Tax Taxable Actual
Value Rate Valuea Taxable Value

0.1800% N/A N/A 3,668,886

0.1803% N/A N/A 3,761,363

0.1779% N/A N/A 3,979,377

0.1778% N/A N/A 4,201,511

0.1779% N/A N/A 4,429,108

0.1778% N/A N/A 4,724,736

0.1778% N/A N/A 5,037,858

0.1779% N/A N/A 5,287,755

0.1780% N/A N/A 5,547,122

0.1781% N/A N/A 5,745,034
143 DRAFT
General
Basic Municipal Total City's
Fiscal Tax Improvement Lighting Share of 1%
Year Levy District District Levy per Prop 13
2013 0.1602 0.0037 0.00955 0.1735
2014 0.1602 0.0037 0.00955 0.1735
2015 0.1602 0.0037 0.09600 0.1735
2016 0.1602 0.0037 0.09600 0.1735
2017 0.1602 0.0037 0.09600 0.1735
2018 0.1602 0.0037 0.00955 0.1735
2019 0.1602 0.0037 0.00955 0.1735
2020 0.1602 0.0037 0.00955 0.1735
2021 0.1602 0.0037 0.00955 0.1735
2022 0.1602 0.0037 0.00955 0.1735
Carlsbad/
Oceanside/ Santa Fe
Fiscal San Diego Vista School Community Irrigation
Year County (1) Projects Districts College District (2) 2013 0.167550 0.0004 0.40281 0.025350 0.10486
2014 0.167550 0.0004 0.40281 0.025350 0.10486
2015 0.167550 0.0004 0.40281 0.025340 0.10486
2016 0.167550 0.0004 0.40281 0.025340 0.10486
2017 0.167550 0.0004 0.40281 0.025340 0.10486
2018 0.167490 0.0004 0.40285 0.025330 0.10490
2019 0.167490 0.0004 0.40293 0.025330 0.10490
2020 0.167490 0.0004 0.40293 0.025330 0.10490
2021 0.167490 0.0004 0.40290 0.025330 0.10490
2022 0.167490 0.0004 0.40290 0.025330 0.10490
(1)
(2) Includes Cwa Santa Fe Irrigation District (.00423) and Santa Fe Irrigation (.02111) (3)
Source:

Includes County School Services, Library, Childrens Institution Tuition, and Regional Occupational Centers.

Includes only rate(s) from indebtedness adopted prior to 1989 per California State Statute San Diego County Assessor 2021/22 Annual Tax Increment Tables and HdL Coren and Cone.
(rate per $100 of taxable value)
City's Share of 1% Levy Per Prop 13
Overlapping Rates

CITY OF SOLANA BEACH
Direct and Overlapping Property Tax Rates,
Last Ten Fiscal Years
144 DRAFT
Solana Beach Metropolitan Santa Fe Mira Costa San Dieguito Total Educational School District Water Irrigation Comm Prop Aa Direct & Revenue Prop JJ District Tax Rate College 11/6/2013 Overlapping Augmentation Debt Service Debt Service Reduction 2016A 2013A A1 Tax Rate

0.12551 - 0.0035 - - - 1.00350

0.12551 - 0.0035 - - 0.0378 1.04131

0.12551 - 0.0035 - - 0.0215 1.02497

0.12551 - 0.0035 - - 0.0227 1.02622

0.12551 - 0.0035 - - 0.0228 1.02625

0.12550 0.03093 0.0035 - 0.01443 0.0223 1.07115

0.12550 0.02886 0.0035 - 0.01294 0.0230 1.06828

0.12550 0.02800 0.0035 - 0.01299 0.0232 1.06767

0.12550 0.02688 0.0035 - 0.01373 0.0233 1.06738

0.12550 0.02653 0.0035 - 0.01339 0.0223 1.06575
Overlapping Rates
Voter Approved (3)
145 DRAFT
7+,63$*(,17(17,21$//</()7%/$1.
146 DRAFT
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
For the Fiscal Year Ended June 30, 2022
S B T C Holdings LLC (Pending Appeals on Parcels) $ 104,498,952 1.82% Pacific Solana Beach Holdings LP 72,848,459 1.27%
SB Coporate Centre III-IV LLC (Pending Appeals on Parcels) 60,524,976 1.05% GRE Beachwalk LLC (Pending Appeals on Parcels) 35,650,719 0.62% Sanyo Foods Corporation of America 0.59% 33,908,935
Fenton Solana Highlands LLC 33,324,364 0.58%
E R P Operating LP 20,968,200 0.36%
Lavida Delmar Asscs LP 18,673,394 0.33%
Solana Mar LLC 0.30% 17,311,461
Showprop Monrovia II LLC (Pending Appeals on Parcels) 0.30% 16,951,509 Total $ 414,660,969 7.22%
For the Fiscal Year Ended June 30, 2013
S B T C Holdings LLC $ 110,670,000 3.02%
Pacific Solana Beach Holdings LP 71,400,000 1.95%
SB Coporate Centre III-IV LLC 30,935,000 0.84%
Sanyo Foods Corporation of America 0.81% 29,715,235
Fenton Solana Highlands LLC 28,225,414 0.77%
E R P Operating LP 18,050,228 0.49%
Muller-Beachwalk LLC 17,800,000 0.49%
Lavida Delmar Asscs LP 16,056,366 0.44%
Urschel Laboratories Inc 13,109,549 0.36%
Price Self Storage Solana Beach LLC 12,744,493 0.35%
Total $ 9.50% 348,706,285
Source: HdL Coren & Cone and San Diego
County Assessor 2012/13 & 2021/22

CITY OF SOLANA BEACH
Principal Property Tax Payers,
Current Year and Ten Years Ago
147 DRAFT
Fiscal
Year Taxes Levied
Ended for the Percentage
June 30, Fiscal Year Amount of Levy
2013 6,110,404 95.4% 5,832,325
2014 6,303,038 95.7% 6,033,082
2015 6,576,197 95.1% 6,257,093
2016 6,931,466 95.7% 6,635,180
2017 7,300,293 96.1% 7,017,400
2018 7,741,663 96.2% 7,444,166
2019 8,232,844 96.6% 7,949,648
2020 8,622,755 96.3% 8,306,418
2021 9,074,415 95.3% 8,652,200
2022 9,507,779 95.5% 9,078,200
Sources: City of Solana Beach Finance Department, County of San Diego Office of Auditor-Controller.

CITY OF SOLANA BEACH
Property Tax Levies and Collections,
Last Ten Fiscal Years
Collected within the
Fiscal Year of the Levy
148 DRAFT
Collections
in Subsequent Percentage
Years Amount of Levy
6,090,470 258,145 100%
6,286,055 252,973 100%
6,472,515 215,422 98%
6,715,343 80,163 97%
7,044,541 27,141 96%
7,477,788 33,622 97%
7,977,388 27,740 97%
8,342,819 36,401 97%
8,717,424 65,224 96%
9,148,816 70,616 96%
Total Collections to Date
149 DRAFT
Business-type
Activities
2002 ABAG Refunding Total Percentage
Fiscal Lease Revenue Lease Bonds Loan Bonds and Direct Primary of Personal Per Year Bonds ABAG Payable Borrowings/Placements Government Income a Capita a 2013* 1,279,300 - 787,950 - 13,095,631 15,162,881 4.58% 1,168 2014* - 5,500,000 1,166,600 745,693 12,175,456 19,587,749 3.56% 1,495 2015* 1,055,400 - 5,500,000 701,931 11,273,883 18,531,214 3.95% 1,419 2016 940,600 - 5,500,000 1,271,372 10,339,405 18,051,377 4.05% 1,338 2017 - 811,391 5,500,000 1,113,062 9,373,587 16,798,040 4.85% 1,242 2018 - 685,559 5,500,000 943,496 19,146,912 26,275,967 3.10% 1,965 2019 - 556,825 5,500,000 769,326 18,064,945 24,891,096 3.52% 1,869 2020 - 420,291 5,500,000 590,421 17,449,133 23,959,845 3.66% 1,806 2021 286,057 - 5,500,000 406,649 16,818,322 23,011,028 3.89% 1,783 2022 144,423 - 5,500,000 349,819 16,262,766 22,257,008 4.04% 1,730 Notes:
a
See Demographic and Economic Statistics schedule for personal income and population data.

These ratios are calculated using personal income and population for the prior calendar year. * Prior years adjusted to comply with GASB comment Q&A 9.24- Included the Premiums/Discounts and Bonds ** Prior year ajdusted to comply with GFOA comment GASB-S44 23- included bonds to schedule Details regarding the city's outstanding debt can be found in the notes to the financial statements.

CITY OF SOLANA BEACH
Ratios of Outstanding Debt by Type,
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Government Activities
150 DRAFT
Fiscal Year 2021-22 Assessed Valuation : $5,746,258,585 Percent Net
Gross Bonded Applicable Bonded
Direct Debt: Debt Balance to City (2) Debt
Repaid with Sales Tax Revenue: (1)
$ 1.623% 5,500,000 338,960,000 $
Repaid with Property Tax:
$ 100.000% 145,000 145,000 $
City of Solana Beach Capital Lease Obligation $ 349,819 100.000% 349,819 Total Direct Debt repaid with Property Tax $ 494,819
Overlapping Debt:
$ 0.169% 34,096 20,175,000 $
$ 4.612% 13,438,446 291,380,000 $
424,285,000 7.611% 32,292,331 $
26,700,000 1.359% $ 362,853
90,570,000 31.921% $ 28,910,850
2,135,000 100.000% $ 2,135,000
5,470,000 0.557% $ 30,468
245,340,000 0.948% $ 2,325,823
340,825,000 0.948% $ 3,231,021
7,780,000 0.948% $ 73,754
12,730,000 7.611% $ 968,880
2,165,000 100.000% $ 2,165,000
Total Overlapping Debt $ 85,968,522
Total Direct and Overlapping Debt repaid with Property Tax (3) 86,463,341 $ Debt to Assessed Valuation Ratios :

Direct Debt ($494,819)
Overlapping Debt
Total Debt
Redevelopment Incremental Valuation ($183,714,143) Ratio:

Total Overlapping Tax Increment Debt
Notes:

Source: California Municipal Statistics, Inc.

1.50%
(1) - Not repaid with Property Tax and therefore excluded from Assessed valuation Ratios. (2) - Percentage of overlapping agency's assessed valuation located within the boundaries of the city.

1.18%
San Diego County Superintedent of Schools General
Fund Obligations
San Dieguito Union High School District Certificates of Participation

0.01%

1.50%
(3) - Excludes tax and revenue anticipation notes, enterprise revenues, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.

Metropolitan Water District

CITY OF SOLANA BEACH
Direct and Overlapping Governmental Activities Debt
As of June 30, 2022
City of Solana Beach Lease Agreement
Limited Tax Bonds Series 2010A
Overlapping Tax Increment Debt
Mira Costa Community College District
San Dieguito Union High School District
San Dieguito Union High School District Community
Facilites District No. 95-1
Solana Beach School District School Facilities
Improvement District No. 2016-1
City of Solana Beach 1915 Act Bonds
Olivenhain Municpal Water District, Assessment
District No. 96-1
San Diego County General Fund Obligations
San Diego County Pension Obligations
151 DRAFT
Legal Debt Margin Calculation for Fiscal Year 2022
Assessed value $ 5,746,259
Debt limit (15% of assessed value) 861,939
Debt applicable to limit:

General obligation bonds -
Total net debt applicable to limit -
Legal debt margin $ 861,939
Legal Debt
Total net debt Margin
Applicable to Legal Percentage of
Fiscal Year Debt Limit Limit Debt Margin Debt Limit
2013 550,417 - 550,417 100.00%
2014 564,290 - 564,290 100.00%
2015 597,013 - 597,013 100.00%
2016 630,359 - 630,359 100.00%
2017 664,464 - 664,464 100.00%
2018 708,810 - 708,810 100.00%
2019 755,767 - 755,767 100.00%
2020 793,275 - 793,275 100.00%
2021 832,192 - 832,192 100.00%
2022 861,939 - 861,939 100.00%

CITY OF SOLANA BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
152 DRAFT
Use of Net
Fiscal Money & Lease/ Less: Available
Year Property Rents Expenditures Revenue
2013* - 154,280 - 154,280
2014* - 148,974 - 148,974
2015* - 148,732 - 148,732
2016* - 153,283 - 153,283
2017* - 152,429 - 152,429
2018* - 151,067 - 151,067
2019* - 154,321 - 154,321
2020* - 147,382 - 147,382
2021* - 150,056 - 150,056
2022* - 147,465 - 147,465
Fiscal
Year Principal Interest Coverage
2013* 112,700 41,580 1.00
2014* 111,200 37,774 1.00
2015* 114,800 33,932 1.00
2016* 123,400 29,883 1.00
2017* 126,800 25,629 1.00
2018* 129,800 21,267 1.00
2019* 137,600 16,721 1.00
2020* 135,300 12,082 1.00
2021* 142,700 7,356 1.00
2022* 145,000 2,465 1.00
Notes:
* 2002 ABAG Lease Revenue Bonds
Expenditures do not include interest, depreciation, or amortization expenses.

CITY OF SOLANA BEACH
Pledged-Revenue Coverage
Last Ten Fiscal Years
2011 ABAG Refunded Lease Revenue Bonds
Debt Service
Details regarding the city's outstanding debt can be found in the notes to the financial statements.
153 DRAFT
Personal Per
Income Capita
Calendar (thousands Personal Unemployment
Year Population of dollars) Income Rate
2012 12,987 695,142 53,526 4.7%
2013 13,099 697,561 53,253 4.1%
2014 13,059 731,200 55,992 6.0%
2015 13,494 778,568 57,697 4.8%
2016 13,527 815,210 60,265 4.3%
2017 13,370 830,408 62,110 1.7%
2018 13,319 875,833 65,758 1.7%
2019 13,264 873,757 65,874 1.7%
2020 12,909 894,002 69,254 5.1%
2021 12,867 899,448 69,903 2.6%
Sources: HdL Coren & Cone report prepared on 9/20/2022
*2017 through 2021 population from BLS and Per Capital Personal Income from City of Solana Beach Finance Department

CITY OF SOLANA BEACH
Demographic and Economic Statistics
Last Ten Calendar Years
154 DRAFT
Employer Category Business category
Ceasar Entertainment 1 Restaurants
SDG & E 1 Associations
General Dynamics Nassco 1 Ship Builders & Repairers (Mfrs) Illumina Inc 1 Biotechnology Products & Services
Sharp Grossmont Hospital 1 Health Services
Merchants Building Maintenance 1 Janitor Service
Page One Seo 1 Mental Health Services
Palomar Pomerodo Health Rehab 1 Rehabilitation Services Rady's Children's Hospital 1 Hospitals
San Diego County Sheriff 1 Police Departments
Scripps Mercy Hospital 1 Hospitals
Scripps Research Institute 1 Laboratories-Research & Development Sea World-San Diego 1 Amusement & Theme Parks
Sharp Grossmont Rehab Ctr 1 Rehabilitation Services
Sharp Mary Birch Hospital 1 Hospitals
Sharp Memorial Hospital 1 Hospitals
Sony Electronics 1 Electronic Equipment & Supplies-Retail Kaiser Permanente Vandever Med 2 Physicians & Surgeons
San Diego Community College 2 Junior-Community College- Tech Institutes UC San Diego Health 2 Hospitals
32nd St Naval Station 3 Federal Government-National Security MCCS MCRD 3 Military Bases
UCSD- Neural Computation 3 University-College Dept/Facility/Office University of California 3 University-College Dept/Facility/Office Univesity-Calfornia Sn Diego 3 University-College Dept/Facility/Office Source:

State of California- Employee Development Department- Major Employers in San Diego for 2022 1st Edition Categories
1 1,000-4,999 Employees
2 5,000-9,999 Employees
3 10,000+ Employees
Employer information specific to the City of Solana Beach is not readily available* * Due to unreliable data, the Top Employer Report is no longer offered by HdL Coren & Cone

CITY OF SOLANA BEACH
25 MAJOR EMPLOYERS - SAN DIEGO COUNTY
AS OF 2022
155 DRAFT
Fiscal Years: 2013 2014 2015 2016 2017
Function/Program
General government
City Council 0.20 0.20 0.20 0.20 0.20
City Clerk 2.65 2.60 3.10 3.10 3.10
City Manager 1.84 1.74 2.05 2.05 1.80
Legal Services 0.25 0.25 0.25 0.25 0.25
Finance 3.35 3.80 3.55 3.55 3.55
Risk Mgt - Ins & Workers Comp - - - - -
Personnel/Human Resources 0.98 0.95 1.00 1.00 1.15
Info/Communication Systems 1.00 1.00 1.00 1.00 1.00
Community Development 5.50 5.40 6.00 6.00 5.80
Public Safety
Fire 19.95 19.95 19.95 19.95 19.95
Code Enforcement 1.75 1.75 1.80 1.80 1.80
Marine Safety 8.06 8.06 8.06 9.49 9.49
Junior Lifeguards 3.73 3.73 3.73 3.53 4.03
Public Works
Engineering 2.48 2.41 2.28 2.13 2.73
Environmental/Flood Control 1.10 1.10 1.10 1.10 1.05
Street Maintenance 2.90 2.90 2.95 2.95 2.95
Park Maintenance 1.35 1.35 1.35 1.35 1.35
Recreation & Community Services
Community Services 0.95 0.95 0.95 0.95 0.90
Recreation 2.59 2.59 2.46 2.48 2.43
Sanitation 2.93 2.98 2.93 3.22 3.12
Improvement Districts 0.95 0.95 0.90 0.90 0.90
Redevelopment Agency 0.60 1.05 0.90 0.90 1.10
Solana Energy Alliance* - - - - -
Total Personnel 65.71 66.51 67.90 68.65 65.11
Source: City of Solana Beach's Annual Budget

CITY OF SOLANA BEACH
Full-time-Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Fiscal Year
Notes: A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Full-time equivalent employment is calculated by dividing total labor hours by 2,080.
*Solana Energy Alliance (SEA) started operations in mid FY2018. The City of Solana Beach provided accounting services to SEA through FY2021 156 DRAFT
2018 2019 2020 2021 2022

0.20 0.20 0.20 0.20 0.20

3.10 3.10 3.23 3.23 3.48

1.90 1.90 2.48 2.48 2.58

0.25 0.25 0.25 0.25 0.25

3.45 3.05 3.30 3.70 3.35
- - 1.20 1.20 1.20

0.95 0.95 0.95 0.95 1.20

1.00 1.00 1.00 1.00 1.50

5.80 5.80 6.00 7.00 6.00

20.20 20.20 20.20 20.20 20.20

1.80 1.80 1.80 1.80 1.80

9.29 9.29 9.71 9.71 9.71

4.23 4.23 4.7 3.98 3.93

2.73 2.73 2.73 2.73 2.73

1.05 1.05 1.05 1.05 1.20

2.95 2.95 2.95 2.95 2.95

1.35 1.35 1.35 1.25 1.35

0.90 0.65 0.90 0.65 0.85

2.43 2.38 2.43 2.33 2.50

3.37 3.37 3.37 3.37 3.67

0.90 0.90 0.90 0.90 0.95

0.80 0.80 0.80 0.14 0.24

0.75 0.75 0.75 - -

68.70 68.65 72.25 71.82 71.84
Fiscal Year
157 DRAFT
2013 2014 2015 2016 2017
Function/Program
Community development
Number of:

Business licenses (A) 2,023 2,147 1,957 2,068 2,007
Plan checks (B) 225 276 275 304 284
Code violations (C) 1,458 1,467 1,016 1,240 1,124
Police (Calendar basis)
Number of calls for service (D) (E):

Priority 1 11 27 12 13 7
Priority 2 480 498 467 437 343
Priority 3 1,711 1,624 1,712 1,740 1,141
Priority 4 1,156 1,037 1,225 1,110 826
Priority 5 N/A N/A N/A N/A N/A
Priority 6 N/A N/A N/A N/A N/A
Priority 7 N/A N/A N/A N/A N/A
Priority 8 N/A N/A N/A N/A N/A
Priority 9 N/A N/A N/A N/A N/A
FBI Index Crimes 321 210 305 240 173
Fire
Emergency Responses 1,736 1,702 1,798 1,810 1,883
Training Hours 5,090 7,080 6,178 5,997 4,696
Plan Checks 335 92 289 380 390
Public works
Miles of:

Street resurfacing/repair 150000** 150000** 550000** 5.3* 1.7* Street sweeping 900 900 900* 900* 900*
Number of:

Street signal maintained 168 192 192 192 192
Trees pruned per year 500 158 40 40 500
Recreation & community services
Number of enrollees:

Day camp (Calendar basis) 385 280 329 266 315
Classes (classes offered to san digueto adult
school) N/A 144 35 ***N/A ***N/A
Mira Costa College Community Education, # of
students N/A N/A N/A N/A N/A
Special events (attendees) N/A 7,350 10,600 7,800 8,300 N/A - Data not available
(A) - Includes new & renewal licenses
(B) - Excludes temporary plan checks.
(C) - 2013 - 2019 are based on calendar year and include violations that did not result in a citation. 2020 - 2022 are fiscal year. These 3 fiscal years and future years only include violations in which citations were issued. (D) - Numbers adjusted and updated on CAFR FY16-17 for FY13-FY17 numbers to count only complete calls for service. (E) - FY18-19 San Diego Sheriff dispatch system shifted to a 9-category system Sources: Various city departments.
* Street Repair in Miles
** Street repair in Square Feet (SF)
*** Classes offered by Mira Costa College
Fiscal Year

CITY OF SOLANA BEACH
Operating Indicators by Function/Program
Last Ten Fiscal Years
158 DRAFT
2018 2019 2020 2021 2022
2,345 2,055 2,677 2,677 1,608
319 319 399 399 483
2,656 2,513 8 - 18
9 11 2 9 12
209 470 159 207 281
167 1,825 117 143 160
1,154 1,181 1,109 1,337 1,478
N/A 247 226 337 345
N/A 147 287 212 164
N/A 703 619 832 831

N/A - - - -

N/A - - - -
139 227 117 231 246
1,792 1,859 1,792 1,495 1,569
6,350 4,687 6,350 6,375 7,053
375 375 375 436 452
4 2 1 1 1
504 504 504 504 504
192 192 192 192 192
280 274 280 280 280
315 322 312 290 303
***N/A ***N/A ***N/A ***N/A ***N/A
700 720 400 150 810
7,700 7,400 6,500 2,200 9,350
Fiscal Year
159 DRAFT
2013 2014 2015 2016 2017
Function/Program
Public Safety
Code enforcement vehicles 2 2 2 2 2
Fire
Stations 1 1 1 1 1
Fire Engines 4 4 3 3 3
Fire Ladder Truck 1 1 1 1 1
Other vehicles 2 1 2 2 2
Public works
Streets (miles) 46 46 42 42 42
Street lights (city-owned) 748 748 527 527 527
Traffic signals 16 18 16 16 16
Public works vehicles 7 8 11 11 12
Public works Corporation Yard 1 1 1 1 1
Recreation & community service
Community centers 2 2 2 2 2
Parks 3 3 3 3 3
Marine Safety
Lifeguard Stations (Permanent)* 3 3 3 3 6
Lifeguard Stations (Temporary) N/A N/A N/A N/A N/A
Vehicles 5 4 4 4 5
Notes: No capital asset indicators are available for the general government.

Sources: Various city departments.
* Both Fixed and Portable Towers up FY18. FY19 broke out number of temporary stations.

Fiscal Year

CITY OF SOLANA BEACH
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
160 DRAFT
2018 2019 2020 2021 2022
22222
11111
32222
11111
23333
42 42 42 42 42
525 525 525 525 525
16 16 16 16 16
88888
11111
22222
22222
63333
N/A 3 4 4 4
55555
Fiscal Year
161 DRAFT
162 DRAFT

CITY OF SOLANA BEACH
635 S. Highway 101
Solana Beach, CA 92075
www.cityofsola na beach .org
(858) 720-2460

Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Suite 203 Brea,CA92821 Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Solana Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Solana Beach, California (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated February 2, 2023.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as items 2022-001 that we consider to be material weaknesses.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and responses as items 2022-001.

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ATTACHMENT 2
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~ '"'Wf'";,,,.,,,M,,miw,nf 11heAssoctatt-011ofAd\-1sory ?;ff PrimeGlobal nadAu•w,,;oqBm" To the Honorable Mayor and Members of the City Council
City of Solana Beach, California
City of Solana Beach’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
February 2, 2023
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To the Honorable Mayor and Members of the City Council
City of Solana Beach, California

SCHEDULE OF FINDINGS AND RESPONSES
Reference No: 2022-001 – Inadequate Controls Over Financial Reporting Evaluation of Finding: Material Weakness
Condition:

As part of our standard audit procedures, we found the following conditions that resulted in significant audit adjustments to the financial statements:
 We examined the cutoff of the City's expenditures to ensure that payments for goods and services were recorded in the correct accounting period. It was identified as part of this examination, that the City did not accrue a payment in the amount of $93,332 which related to payment for services received by the City prior to June 30, 2022, but disbursed after the year end in accounts payable as of June 30, 2022.
 Through review of the federal grant schedule, it was noted that adjustments to record unavailable revenues in prior year for the State Park Per Capita Grant of $169,756 for cash receipts that were not recorded. This caused the revenue to be understated in prior year and improper recording of the deferred revenue.

Criteria: Management is responsible for the preparation and fair presentation, as well as the accuracy of its financial statements, including disclosures in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud. The matching principle as described in Generally Accepted Accounting Principles requires that a liability and expenditure be recorded in the same period for which goods or services are received and that the liability be eliminated when the payment is made to the service provider or vendor.

Cause of Condition:

It was determined that the error was caused due to an oversight during the year-end closing process and accounting payable review resulting from the significant staffing turnover the City's Finance Department has endured during the fiscal year.

Effect or Potential Effect of Condition:

The result of this condition was that the preliminary account balances for expenditures and accounts payable were understated by $93,332 and ending fund balance of the SB 1 Streets & Roads nonmajor governmental fund was overstated by the same amount. Unavailable revenue adjustment caused revenue to be overstated as of June 30, 2022 by $169,756.

Recommendation:

We recommend that the City develop procedures or a review mechanism, or other compensating controls, including the development of a detailed procedures manual which includes accrual cutoff dates and dollar thresholds, for the year-end accrual of invoices to ensure that all accruals are recorded at year end and that all expenditures are recorded in the correct accounting period. In addition, the City should evaluate whether revenues were collected within the availability period to ensure proper revenue recognition.

Client Response:

The City agrees with LSL’s recommendation and will incorporate the finding into its year end close procedures.

Other Information:

After discussing the matter with management, the City proposed a correcting journal entry to accrue the expenditure and the payable in the SB 1 Streets & Roads nonmajor governmental fund and correct the error. The financial statements at June 30, 2022 present the corrected amounts.

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Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Suite 203 Brea,CA92821 Phone: 714.672.0022 February 2, 2023
To the Honorable Mayor and Members of the City Council
City of Solana Beach, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Solana Beach, California (the City) for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 3,2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Significant Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies related to accounting for leases by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 87, Leases, in June 30, 2022. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimates of its net pension liability, net other post-employment benefits (OPEB) liability, and claims liability are based on actuarial valuation specialist assumptions.

We evaluated the key factors and assumptions used to develop the net pension liability, net OPEB liability, and claims liability in determining that they are reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users.

The disclosure of Debt Covenant Compliance for JPA Loans in Note 11 to the financial statements calculates the City’s debt service coverage ratios, which are required disclosures related to the City’s debt covenants and are of particular importance to users of the financial statements, particularly the City’s debtholders.

The financial statement disclosures are neutral, consistent, and clear.

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ATTACHMENT 3
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~ '"'Wf'";,,,.,,,M,,miw,nf 11heAssoctatt-011ofAd\-1sory ?;ff PrimeGlobal nadAu•w,,;oqBm" To the Honorable Mayor and Members of the City Council
City of Solana Beach, California
Significant or Unusual Transactions
Management is responsible for the policies and practices used to account for significant or unusual transactions. No significant unusual transactions have occurred during fiscal year 2021-2022.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management.

Management has corrected all such misstatements. In addition, we detected misstatements as a result of audit procedures which were material, and were subsequently corrected by management. The details of these misstatements are described in a separate letter dated February 2, 2023.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated February 2, 2023.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the significant events or transactions that occurred during the year, business conditions affecting the City and business plans and strategies that may affect the risks of material misstatements, the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the management’s discussion and analysis, the budgetary comparison schedules, and the required pension and other post-employment benefits schedules, as listed in the Annual Comprehensive Financial Report’s table of contents, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of DRAFT
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To the Honorable Mayor and Members of the City Council
City of Solana Beach, California
management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on combining statements and individual fund statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on introductory or statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2021-2022 audit:

GASB Statement No. 87, Leases.

GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.

The following GASB pronouncements are effective in the following fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal year 2023
GASB Statement No. 91, Conduit Debt Obligations.

GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangement.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

Fiscal year 2024
GASB Statement No. 99, Omnibus 2022.

GASB Statement No. 100, Accounting Changes and Error Corrections.

Fiscal year 2025
GASB Statement No. 101, Compensated Absences.

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To the Honorable Mayor and Members of the City Council
City of Solana Beach, California
Restriction on Use
This information is intended solely for the use of City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
Brea, California
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CITY COUNCIL ACTION: ____________________________________________________ _________________________________________________________________________ AGENDA ITEM # C.2.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Gregory Wade, City Manager
MEETING DATE: February 22, 2023
ORIGINATING DEPT: City Clerk’s Office
SUBJECT: Annual Citizen Commission Appointments to 1) Public Arts Commission and 2) Parks and Recreation Commission
BACKGROUND:

On January 25, 2023, Council made annual appointments to 3 of the 5 Citizen Commissions and asked for an application extension period for the Public Arts Commission and Parks and Recreation. The positions to be filled are for two-year terms, until January 2025.

All appointments to Citizen Commissions are conducted in accordance with Council Policy No. 5 - Appointment of Citizens to Boards, Commissions, Committees, and Task Forces (Attachment 2) - and all persons interested in serving on the City’s Citizen Commissions are required to complete and file a Citizen Interest Form (application), with the required references, and submit it to the City Clerk for formal application processing. For those Commission members who may be reapplying for their position’s scheduled vacancy, a re-submittal application is made available for minor changes to their original full application, thus streamlining the application process. However, if the applicant applies for a new Commission or wants to modify any of the questionnaire sections, a new full application is required. The Application/Citizen Interest Form is available year-round at the City Clerk’s Office and on the City’s website. Any person interested in serving on a Citizen Commission may apply any time prior to or during the annual or other recruitment periods.

Pursuant to California Government Code Section 54972 (the “Maddy Act”), the posting of certain information of all current members appointed by City Council is required, listing the names of all serving appointees, original date of appointment, term and qualifications for all appointed positions. This posting requirement was met on November 23, 2022 (Attachment 1) on the City’s bulletin board and on the City’s website.

DISCUSSION:

The extension of the recruitment period for the Public Arts Commission and Parks and Recreation commissions was posted on January 26th with an application deadline of February 14th. As of this deadline, a total of 10 applications are available for consideration and posted on the Worksheet.

February 22, 2023
Citizen Commissions Annual Appointments

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Solana Beach City CouncilFebruary 22, 2023

Solana Beach City Council
February 22, 2023