Agenda — Solvang City Council, January 23, 2023 (part 1 of 3)

SOLVANG

CITY COUNCIL AGENDA
MONDAY, JANUARY 23, 2023
5: 30 PM SPECIAL CLOSED SESSION
AND
6: 30 PM REGULAR MEETING
VIRTUAL & IN COUNCIL CHAMBER, 1644 OAK STREET, SOLVANG, CA 93463 City Council:

Mark Infanti, Mayor
Elizabeth Orona District 4
David Brown District 3
Claudia Orona at -large
Robert Clarke at -large
AGENDA AND SUPPORTING MATERIALS — Available for viewing 8: 00a. m.- 5: 00p. m. at City Hall, 1644 Oak Street, Solvang, and on the City' s
website https:// www. cityofsolvang. com/ agendacenter. Additional writings that are distributed to a majority of the City Council after the posting of the agenda will be made available at City Hall and on the City' swebsite.

AGENDA POSTING NOTIFICATION - Subscribe to receive email or text message notifications when agendas are posted online through " Notify Me" at: https:// www. cityofsolvang. com/ List. aspx PUBLIC COMMENT - The public is encouraged to address the City Council in -person, virtually, or in -writing on agenda and non -agenda items. If provided in writing, comments must be submitted to the City Clerk at cityclerk@cityofsolvang. comby 5: 00 p. m. on the Friday before the meeting to be considered. Your comment will be recorded and distributed appropriately. Comments on agenda items will be heard at the time each item is considered, including non -agenda items. In -person speakers will be invited to make public comments first.

Virtual speakers will follow.

AMERICANS WITH DISABILITIES ACT - If, as a participant of this meeting, you need special assistance the City will attempt to accommodate you in every reasonable manner. Please contact the City Clerk at either ( 805) 688- 5575 x206 or cityclerk@cityofsolvang. com. 72- hours' notice is requested PARTICIPATING IN THE MEETING - Pursuant to California Assembly Bill 361, City Council meetings will be conducted by video/ teleconferencing through Zoom. Meetings will also be broadcast live on Channel 23 and streamed on the City' s website, Vimeo, and YouTube.

To join by Zoom, visit https:// zoom. us/ j3066529195. If you wish to speak, please use the "raised hand" symbol.

To join by phone, call ( 888) 788- 0099 and enter Meeting ID: 306 652 9195#. The phone line will be open starting at 6 p. m.
5: 30 PM CITY COUNCIL SPECIAL CLOSED SESSION

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

1. PUBLIC COMMUNICATIONS ON CLOSED SESSION
This section is intended to provide members of the public with the opportunity to comment on Closed Session Items. This section is limited to 30 minutes. Each speaker will be afforded three minutes, and may speak only once
1 2. RECESS TO CLOSED SESSION
a. CONFERENCE WITH LEGAL COUNSEL —Existing Litigation - pursuant to Gov. Code 54956. 9(d)( 1)
Name of Case:

City of Solvang — Petition to Change Water -Right Permit 15878 (Application No. A022423), under
National
protest
Marine
by
Fisheries
California
Service,
Trout and
and
National
comment
Oceanic
by California
and Atmospheric
Department
Administration' s
of Fish and Wildlife.

RECONVENE TO OPEN SESSION

3. ANNOUNCEMENT OF CLOSED SESSION ACTIONS

4. ADJOURNMENT
6: 30 PM REGULAR MEETING

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE
PROCLAMATIONS, COMMENDATIONS AND CEREMONIAL ITEMS - None PRESENTATIONS - None

1. PUBLIC COMMUNICATIONS — NON- AGENDA AND CONSENT ITEMS This section is intended to provide members of the public with the opportunity to address the Council on items not on the Agenda and on Consent. This section is limited to 30 minutes. Each speaker will be afforded three minutes and may speak only once. State law does not allow the Council to discuss or take action on issues not on the agenda, except to briefly respond or to ask Staff to follow up on such items.

2. CITY MANAGER REPORT AND ADVANCE CALENDAR
Informational Report

3. COUNCIL COMMENTS AND REQUESTS
Comments and requests from City Council Members. No action will be taken at this meeting.

4. CONSENT ITEMS
Consent is designed for routine; administrative city matters and is approved by roll call vote with one motion.

These items are discussed only on request of council members. Members of the public were afforded an opportunity to speak on Consent items during the Public Communications portion of this agenda. a. Approve Order of Agenda as Presented.
b. Receive and file Santa Barbara County Sheriffs Statistics through December 2022 5 c. Adopt Resolution 23- 1206, a Resolution of the City Council of the City of Solvang, California Authorizing Signatories to the City Bank Accounts with Montecito Bank & Trust 11 d. Approve Amendment 1 to the Agreement with MuniServices LLC to examine transaction, sales and use tax records to include the Solvang local Control and Essential Services tax — Measure U 1 % transaction and use tax) for a 15% contingency fee until terminated; and authorize the Mayor 2 to execute on behalf of the City 14

5. PUBLIC HEARINGS - None

6. DISCUSSION ITEMS
a. Discussion and possible action to approve FY 22-4 City Grant Funding Process timeline 49 b. Discussion and possible action for City Council appointments of members to the Design Review Committee, Planning Commission, and Tourism Advisory Committee for two- year terms ending December 31, 2024 83
c. Accept the 2021/022 Annual Comprehensive Financial Report as presented by Ahmed Badawi, CPA 155
d. Discussion and possible action to receive and file the draft Housing Element to the General Plan 337

7. AB1234 REPORT OUT AND COUNCIL CLOSING COMMENTS

8. ADJOURNMENT

AFFIDAVIT OF POSTING
I, Annamarie Porter, City Clerk for the City of Solvang, California, DO HEREBY CERTIFY under penalty of perjury under the laws of the State of California, that the foregoing revised notice was posted at the City of Solvang City Hall bulletin board at 1644 Oak Street, Solvang, CA and on the City of Solvang website not less than 72 hours prior to the meeting, per Government Code 54954. 2.

Dated this 18th day of January 2023
3 Agenda

CITY COUNCIL ADVANCE CALENDAR

SOLVANG
Meeting Date Item Agenda Action
13 - Feb General Plan -Housing Element -Submittal Discussion Approve NOC- Slurry Seal Project Approve
2022 Fire Code Adoption
Badawi Auditors Amendment to Extend Consent Approve
Julefest Update Receive
27 -Feb FY 22-3 Mid Year
27 -Mar Transit Management Plan Presentation Receive
Future Meetings ABC Finding of Necessity Discussion Approve Outdoor Dining Policy Discussion Direction
Residences as a primary use in the TRC Zone Discussion
General Plan
Finance Department reorganization Discussion
Closed Session - 410 real property neg closed session tbd Pedlers License Review Discussion
Adult Use Cannabis Retail Sale Discussion Direction
Grant Funding Applications review Discussion direction
Meeting Date
Council Requested Agenda Items
Agenda Item Agenda Action
IN/ A
Annual Reports
Agenda Item Agenda Action
January Comprehensive Annual Financial Report Discussion Approve January Brown Act Training
February Measure A 5 -Year Local Program of Projects Public Hearing Approve February Mid -Year Budget Adjustments
February Fiscal Outlook and Financial Policies Discussion Approve February ( every -two
years/ even year)
Council Budget Goal Setting Public WorkshoF Approve
March Housing Element and LEAP Grant Annual Report Public Hearing Approve March SB1 RMRA project List Public Hearing Approve
March Investment Policy Annual Review Discussion Approve March Solvang Skytt Mesa LLMD Annual Assessment Public Hearing Approve March FTA 5311 Grant Agreement Consent Approve
March TDA Grant Funding Consent Approve
May Preliminary Budget
Oct/ Jan/ April/ July Quarterly Financial Reports Discussion Approve June Two -Year Financial Plan Development or Supplemental Budget adoption Discussion Adopt
June Capital Improvement Program Discussion Adopt
June/uly Amend Appropriation Limit Public Hearing Adopt July AB 1600 Report Discussion Approve
November Stormwater Management Program Annual Report Consent Receive December Appointment of Mayor pro tem Discussion Approve December Council selection of representatives to Committees and Agencies Discussion Approve
December ( even
years) Appointment to Boards, Commissions, Committees Discussion Approve 4 Agenda Item 4. b
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD CRIMINAL HOMICIDE 2022
CRIMINAL HOMICIDE 2021 0 0 0 0 0 0 0 0 0 0 0 0 0 0
CRIMINAL HOMICIDE 2020 0 0 0 0 0 0 0 0 0 0 0 0 0 0
CRIMINAL HOMICIDE 2019 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD FORCIBLE RAPE 2022
FORCIBLE RAPE 2021 0 0 0 0 0 0 0 0 0 0 0 0 0 0
FORCIBLE RAPE 2020 0 0 0 0 0 0 0 0 0 0 0 0 0 0
FORCIBLE RAPE 2019 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD ROBBERY 2022 u 0
ROBBERY 2021 0 0 0 1 0 1 0 0 0 0 0 1 3 3
ROBBERY 2020 0 0 0 0 0 0 0 0 0 0 0 1 1 1
ROBBERY 2019 0 0 0 1 0 0 0 0 0 0 0 0 1 1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD ALL ASSAULTS 2022 4
ALL ASSAULTS 2021 1 3 3 1 1 2 4 4 2 3 2 0 26 26
ALL ASSAULTS 2020 1 2 3 2 3 1 8 1 2 3 4 5 35 35
ALL ASSAULTS 2019 0 0 0 4 3 3 3 3 4 5 3 2 30 30
BURGLARY Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD BURGLARY TOTAL 2022 A
BURGLARY TOTAL 2021 0 0 0 3 3 0 0 1 0 0 0 0 7 7
BURGLARY TOTAL 2020 4 0 0 0 0 0 1 2 0 0 0 1 8 8
BURGLARY TOTAL 2019 1 0 1 2 0 1 7 0 0 1 3 2 18 18
RESIDENTIAL 2022
RESIDENTIAL 2021 0 0 0 0 1 0 0 0 0 0 0 0 1 1
1 of 6 5
City of Solvana Recan
RESIDENTIAL 2020 1 0 0 0 0 0 0 0 0 0 0 0 1 1
RESIDENTIAL 2019 0 0 1 1 0 0 1 0 0 0 0 0 3 3
COMMERCIAL 2022
COMMERCIAL 2021 0 0 0 2 0 0 0 1 0 0 0 0 3 3
COMMERCIAL 2020 3 0 0 0 0 0 1 2 0 0 0 0 6 6
COMMERCIAL 2019 1 0 0 1 0 1 5 0 0 0 2 1 11 11
INSTITUTIONAL 2022
INSTITUTIONAL 2021 0 0 0 0 0 0 0 0 0 0 0 0 0 0
INSTITUTIONAL 2020 0 0 0 0 0 0 0 0 0 0 0 0 0 0
INSTITUTIONAL 2019 0 0 0 0 0 0 0 0 0 0 0 0 0 0
ALL OTHERS 2022
ALL OTHERS 2021 0 0 0 1 2 0 0 0 0 0 0 0 3 3
ALL OTHERS 2020 0 0 0 0 0 0 0 0 0 0 0 1 1 1
ALL OTHERS 2019 0 0 0 0 0 0 1 0 0 1 1 1 4 4
2 of 6 6
City of Snlvann Reran
THEFTS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD THEFTS 2022
THEFTS 2021 3 6 7 10 6 5 6 7 2 8 1 3 64 64
THEFTS 2020 5 6 4 1 4 2 6 4 1 7 4 6 50 50
THEFTS 2019 3 4 3 5 3 1 2 11 5 4 3 1 45 45
PROPERTY VALUE Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD STOLEN 2022 16, 990 3, 761 8, 685 54, 742 12, 470 1, 200 14, 442 22, 580 42, 087 21, 155 11, 538 7,77 217, 427 21i STOLEN 2021 1,74 567 7, 070 20, 853 69, 420 36,64 42, 701 14, 990 650 7, 994 4, 105 319 206,07 206,07 STOLEN 2020 32, 675 9, 830 106, 750 2, 985 320 9, 246 6,85 2, 194 8, 797 3, 176 182, 658 182, 658 STOLEN 2019 12, 615 7, 800 1, 863 9, 130 4,16 6, 000 6,00 16, 262 1, 700 1, 295 1, 893 31, 833 101, 407 101, 407 RECOVERED 2022 6, 000 6, 000 6, 000
RECOVERED 2021 S - S - 5, 000 220 1,52 9 6, 381 6, 381
RECOVERED 2020 30 25 4, 000 500 47 4, 602 4, 602
RECOVERED 2019 5, 800 3, 800 200 126 139 500 295 10, 860 10, 860 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD VEHICLE THEFT 2022 9 n
VEHICLE THEFT 2021 0 0 0 0 2 1 0 1 0 0 1 0 5 5
VEHICLE THEFT 2020 0 0 0 0 0 0 2 1 0 0 0 0 3 3
VEHICLE THEFT 2019 1 1 0 0 0 1 1 0 0 0 0 0 4 4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD VEHICLES RECOVERED 2022 0 1
VEHICLES RECOVERED 2021 0 0 0 0 0 1 0 0 0 0 0 0 1 1
VEHICLES RECOVERED 2020 0 0 0 0 0 0 2 1 0 2 0 0 5 5
VEHICLES RECOVERED 2019 1 1 0 0 0 0 0 0 0 0 0 0 2 2
TRAFFIC COLLISIONS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD ACCIDENTS 2022
ACCIDENTS 2021 1 2 2 5 3 4 1 3 2 7 2 2 34 34
3 of 6 7
ACCIDENTS 2020 3 6 1 1 5 2 0 2 4 5 4 3 36 36
ACCIDENTS 2019 2 2 5 2 3 3 6 3 6 2 3 0 37 37
INJURY COLLISIONS 2022 2 2
INJURY COLLISIONS 2021 0 0 1 0 1 0 0 1 0 2 0 0 5 5
INJURY COLLISIONS 2020 0 0 0 0 1 1 0 0 0 1 1 0 4 4
INJURY COLLISIONS 2019 2 0 0 0 0 1 1 1 1 0 1 0 7 7
PERSONS INJURED 20L -
PERSONS INJURED 2021 0 0 1 0 1 0 0 1 0 2 0 0 5 5
PERSONS INJURED 2020 0 0 0 0 2 1 0 0 0 1 1 0 5 5
PERSONS INJURED 2019 3 0 0 0 0 2 1 1 2 0 1 0 10 10
FATAL COLLISONS 2022
FATAL COLLISONS 2021 0 0 0 0 0 0 0 0 0 0 0 0 0 0
FATAL COLLISONS 2020 0 0 0 0 0 0 0 0 0 0 0 0 0 0
FATAL COLLISONS 2019 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TRAFFIC DEATHS 2022
TRAFFIC DEATHS 2021 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TRAFFIC DEATHS 2020 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TRAFFIC DEATHS 2019 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 of 6 8
City of Snlvann Reran
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD CITATIONS 2022
CITATIONS 2021 4 2 12 3 5 0 27 11 12 16 15 6 113 113
CITATIONS 2020 3 5 7 3 8 2 1 5 3 2 21 6 66 66
CITATIONS 2019 5 4 7 6 21 4 3 6 4 5 27 7 99 99
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD DUI ARRESTS 2022 1 1 2
DUI ARRESTS 2021 1 3 0 1 2 2 2 2 1 1 4 3 22 22
DUI ARRESTS 2020 1 0 2 0 1 0 3 2 1 4 1 6 21 21
DUI ARRESTS 2019 1 1 2 3 1 8 2 1 1 3 5 1 29 29
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD TOWED VEHICLES 2022
TOWED VEHICLES 2021 1 0 0 0 0 1 0 0 1 2 1 1 7 7
TOWED VEHICLES 2020 0 2 0 0 1 1 0 1 1 1 2 0 9 9
TOWED VEHICLES 2019 1 1 0 1 1 0 1 1 0 0 0 0 6 6
ARRESTS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD FELONY 2022 0 5
FELONY 2021 1 4 4 3 6 0 6 6 3 4 8 1 46 46
FELONY 2020 5 1 3 1 2 5 4 5 8 3 3 2 42 42
FELONY 2019 0 0 5 3 1 4 4 3 2 3 2 2 29 29
MISDEMEANOR 2022
MISDEMEANOR 2021 13 7 7 15 14 13 18 16 13 5 18 5 144 144 MISDEMEANOR 2020 16 13 10 2 10 6 13 8 8 14 10 15 125 125 MISDEMEANOR 2019 7 12 17 15 17 31 19 11 13 11 26 8 187 187 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD CALLS FOR SERVICE 2022 2 309 3 388 4, 546
CALLS FOR SERVICE 2021 290 337 395 400 401 430 553 452 413 433 428 353 4, 885 4, 885 5 of 6 9
CALLS FOR SERVICE 2020 442 390 363 256 396 384 399 470 431 402 378 370 4681 4681 CALLS FOR SERVICE 2019 395 388 416 458 496 471 569 519 428 444 456 412 5, 452 5, 452 REPORTS TAKEN 2022 41 47 37 44 508
REPORTS TAKEN 2021 45 39 41 57 55 45 47 60 46 51 56 27 569 569 REPORTS TAKEN 2020 51 46 35 22 46 36 51 51 39 51 50 48 526 526 REPORTS TAKEN 2019 45 46 43 58 64 72 71 64 50 56 68 32 669 669 Transient/ Homeless Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD CALLS FOR SERVICE 2022 5 87
REPORTS TAKEN 6 39
ARRESTS MADE 2 20 20
Detective Tracking Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals YTD 2022 New Cases Forwarded to
Investigations
11 14 o 12 11 1 z5 125
2022 Cases Suspended 0 0
r 0 0 0 0 0 0
2022 Cases Assigned n R
2022 Cases Closed by Arrest 0 0 L 6 J I., 5
2022 Cases Closed by Other 10 15 7 0 11 8 10 17 10 0 9 106 106 2022 Submitted for Complaint 1 0 0
r n 0 0 0 0 1 1
2022 Current Active Cases 7 6 83 8;
6 of 6 10
Agenda Item: 4. c

SOLVANG
77te Danish Capital a/_ Itnerira
Solvang City Council STAFF REPORT
PREPARED BY: Brad Vidro, Interim City Manager
MEETING DATE: January 23, 2023
SUBJECT: Adopt Resolution 23- 1206, a Resolution of the City Council of the City of Solvang, California Authorizing Signatories to City Bank Accounts with Montecito Bank & Trust.

RECOMMENDATION:

Adopt Resolution 23- 1206
DISCUSSION:

With the certification of the City Council election the City Council voted to appoint Elizabeth Orona as the Mayor pro tem. Additionally, the City has appointed Wendy Berry as the Administrative Services Director.

This position serves as the City' s Treasurer. These changes result in the need to amend the signatories to the City' s bank accounts with Montecito Bank and Trust.

Montecito Bank & Trust has requested specific designation of individuals with authorized access to the City' s bank accounts with that institution. As such, in accordance with existing City policy granting such authority to the Mayor, Mayor pro tem, City Manager and Administrative Services Director, staff recommends that the Council also adopt a resolution approving the addition of Wendy Berry, Administrative Services Director and Mayor pro tem Elizabeth Orona as authorized signatories to the City' s accounts ending in XXXXX6832 and XXXXX3849, and the removal of Charlie Uhrig as an authorized signatory to those accounts.

ALTERNATIVES:

Council could decline to approve the resolution, however this would leave the City with only two available signatories to the accounts.

FISCAL IMPACT:

There is no fiscal impact with this action.

ATTACHMENTS:

A. Resolution 23- 1206 Authorizing Bank Signatories
11 RESOLUTION NO. 23- 1206

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLVANG, CALIFORNIA

AUTHORIZING SIGNATORIES TO CITY BANK ACCOUNTS WITH MONTECITO BANK & TRUST WHEREAS, the Solvang City Council has appointed Elizabeth Orona as Mayor pro tem; and
WHEREAS, the City has hired Wendy Berry as the Administrative Services Director who also serves as the City' sTreasurer; and
WHEREAS, the City maintains bank accounts with Montecito Bank & Trust ending in XXXXX6832 and XXXXX3849; and
WHEREAS, the City' s existing check authorization policy designates the Mayor, Mayor pro tem and City Manager as authorized signatories to the City' s bank accounts; and WHEREAS, the City' s desires to add the Administrative Services Director as an authorized signatory; and
WHEREAS, Montecito Bank & Trust has requested that the City provide explicit authorization to named individuals for access to the bank accounts listed above.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOLVANG DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The Recitals set forth above are true and correct and are adopted in support of the Council' saction herein.

SECTION 2. The City Council hereby authorizes the following individuals to be signatories for the City' s accounts with Montecito Bank & Trust ending in XXXXX6832 and XXXXX3849: Mark Infanti, Mayor, Elizabeth Orona, Mayor pro tem, Bradley Vidro, Interim City Manager and Wendy Berry, Administrative Services Director.

SECTION 3. The City Council hereby directs removal of Charlie Uhrig as an authorized signatory to the bank accounts set forth in Section 2.

SECTION 4. This Resolution is effective immediately upon adoption.

SECTION 5. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED, AND ADOPTED on this 23rd day of January, 2023.

Mark Infanti, Mayor
APPROVED AS TO FORM: ATTEST:

Dave Fleishman, City Attorney Annamarie Porter, City Clerk 12 STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss

CITY OF SOLVANG )
I, Annamarie Porter, City Clerk of the City of Solvang, California do hereby certify that Resolution No. 23- 1206, was passed and adopted by the City Council of the City of Solvang at a regular meeting of said City Council held on the 23rd day of January 2023, and thereafter signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Annamarie Porter, City Clerk
13 SOLVANG

CITY COUNCIL STAFF REPORT
AGENDA ITEM 4. d
Meeting Date: January 23, 2023
SUBJECT: Approve Amendment 1 to the agreement with MuniServices LLC to examine transaction, sales and use tax records to include the Solvang Local Control and Essential Services Tax — Measure U ( 1% transaction and use tax); for a 15% contingency fee until terminated, and authorize the Mayor to execute on behalf of the City.

PREPARED BY: Wendy Berry, Administrative Services Director DISCUSSION:

Section 7285. 9of the California Revenue and Taxation Code authorizes any city to levy increase or extend a transaction and use tax for general purposes at a rate of 0. 125 percent, or a multiple thereof, subject to approval by a two-hirds vote of all of the members of the City Council and by a majority of the qualified voters of the City of Solvang voting in an election on the issue.

The Measure U transaction and use tax increase of 1% was approved by the voters at the November 8, 2022 election.

Muni Services LLC has been providing audit and information services for sales and use tax since 1989.

The California Department of Tax and Fee Administration Department requires a contract amendment with Muni Services to include the newly approved 1 % increase in transaction and use tax.

At the December 12, 2022 City Council meeting, Council adopted Ordinance 22- 0363 declaring the vote of the people, Resolution 22- 1202 authorizing examination of sales and use tax records and Resolution 22- 1203 authorizing the Interim City Manager to execute agreement with the California Department of Tax and Fee Administration for implementation of a local transaction and use tax.

The Muni Services LLC contract amendment should be the final document required by the California Department of Tax and Fee Administration Department to receive the 1°/ 0 increase in transaction use tax commencing April 1, 2023.

ALTERNATIVES:

None
FISCAL IMPACT:

There is no fiscal impact with this action as it just allows Muni Services LLC the ability to review and report to the City sales tax activity derived from the approved 1`)/ 0 transaction and use tax.

ATTACHMENTS:

A. Muni Services Amendment 1
B. Original Muni Services Contracts
14 AMENDMENT NO. 1

TO THE PROFESSIONAL SERVICES AGREEMENT WITH MUNISERVICES LLC THIS FIRST AMENDMENT, is made and entered into this 23rd day of January 2023, between the CITY OF SOLVANG, a municipal corporation and charter City, hereinafter referred to as " City" and MUNISERVICES LLC, a Delaware Limited Liability Company with its principal place of business at 5860 Trinity Parkway, Suite 120, Centreville, VA 20120 (" Consultant"). In consideration of the mutual covenants and conditions set forth in the original Agreement dated August 7, 1989 with Municipal Resource Consultants, Assigned to and Assumed by MuniServices LLC on March 11, 2021; the parties agree to incorporate language into the professional services agreement as set forth herein as Exhibit A, All remaining portions of the original Agreement and Assignment shall remain in full force and effect.

CITY OF SOLVANG MUNISERVICES LLC
Mark Infanti, Mayor Carl Kumpf, Chief Financial Officer

APPROVED AS TO FORM
Dave Fleishman, City Attorney
ATTEST:

Annamarie Porter, City Clerk
15 Exhibit A

1. The following language is incorporated into the Professional Services Agreement as if set forth therein.

Transaction and Use Tax
MuniServices qualifies under Section 7056 of the Revenue and Taxation Code to review (Bradley - Burns) confidential taxpayer information and documentation before the State Board of Equalization ( BOE) or its successor agency, the California Department of Tax and Fee Administration ( collectively, or in the alternative, the " Agency'). MuniServices is hereby authorized by this Agreement to examine transaction tax, sales tax and use tax records of the Agency, including but not limited to the transaction and use tax that becomes effective on or about November 8, 2022 known as the Solvang Local Control and Essential Services tax Measure U ( 1% transaction and use tax) pertaining to the ascertainment of those sales or transactions and use taxes to be collected for the City.

MuniServices is required to disclose information contained in, or derived from, those transaction, sales and use tax records only to an officer or employee of the City who is authorized by resolution to examine the information.

MuniServices is prohibited from performing consulting services for a retailer during the term of this Agreement.

MuniServices is prohibited from retaining the information contained in, or derived from, those transaction, sales and use tax records, after this Agreement has expired."

2. The City and MuniServices agree that although the scope of work generically refers to " sales and use tax" those references are meant to include " sales, transaction, and use tax" as part of the scope of work, including but not limited to any transaction and use taxes adopted after the effective date of the Agreement.

3. The Parties agree that Agreement is applicable to all Sales, Transaction and Use Tax Ordinances currently enacted in the City and which may become enacted while the Agreement is in effect.

4. The Parties agree that Resolution No. 22- 1202 attached hereto as Exhibit B to this Amendment was passed and adopted by the City Council of the City of Solvang on or about December 12, 2022.

5. The Parties agree that the Compensation section of the Agreement shall be amended to state that:

MuniServices' compensation for the Sales, Transactions and Use Tax Audit Service shall be a 15% contingency fee. This fee applies to revenue received for six quarters beginning with the quarter in which the Date of Correction falls and all eligible prior quarters back to and including the three quarters prior to the Date of Knowledge quarter for Bradley -Burns sales tax revenues and all eligible prior quarters back to and including all corrected quarters prior to the Date of Knowledge quarter for district tax revenues.

6. Except as herein modified, all other provisions of the Agreement, including any exhibits and subsequent amendments thereto, shall remain in full force and effect.

7. In case of a conflict between the terms of this Amendment and the terms of the Contract, the terms of this Amendment shall strictly prevail.
16 DocuSign Envelope ID: B3822991- C24A- 43EA- A843- 30710C3B6OBA EXHIBIT B RESOLUTION NO. 22- 1202

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLVANG, CALIFORNIA,

AUTHORIZING EXAMINATION OF SALES AND USE TAX RECORDS
WHEREAS, pursuant to Ordinance Number 85- 12, the City of Solvang ( City) entered into a contract with the California Department of Tax and Fee Administration ( Department) to perform all functions incident to the administration and collection of sales and use taxes; and WHEREAS, pursuant to Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration ( Department) to perform all functions incident to the administration and collection of transactions and use taxes; and WHEREAS, the City Council of the City of Solvang deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to sales and use taxes collected by the Department for the City pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056. 5of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOLVANG DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. That the City Manager, Administrative Services Director and Accounting Supervisor, or other officer or employee of the City designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to sales and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.

SECTION2. The information obtained by examination of Department records shall be used only for purposes related to the collection of City sales and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City:
a) Budget development
b) Economic Development
The information obtained by examination of Department records shall be used only for those government functions of the City listed above.

SECTION 3, That MuniServices, LLC. is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and MuniServices, LLC:
a) has an existing contract with the City to examine those sales or transactions and use tax records;
b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
22- 1202 Sales Use Tax Examination - Muniservices
17 DocuSign Envelope ID: B3522991- C24A- 43EA- A543- 30710C3B60BA c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City sales and use taxes by the Department pursuant to the contract between the City and the Department.

SECTION 4. That MuniServices, LLC. is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to any petition or appeal for the redistribution of sales or transactions and use taxes that was filed by MuniServices, LLC. on behalf of the City pursuant to the contract between the MuniServices, LLC. and City. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the MuniServices, LLC.
a) has an existing contract with the District to examine those sales or transactions and use tax records;
b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

SECTION 5. That this resolution supersedes all prior resolutions of the City Council of the City of Solvang adopted pursuant to subdivision ( b) of Revenue and Taxation Code section 7056.

SECTION S. That this Resolution shall remain in full force and effect until rescinded by the City Council by resolution and a
copy of the resolution rescinding this resolution be filed with the State Treasurer' sOffice.

SECTION 7. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED, AND ADOPTED on this 12th day of December 2022.

DoddSigned by:

L_p-(/ fn L J C/ lL
rpe7ppr5r5rrneZ
o
Charlie Uhrig, Mayor
APPROVED AS TO FORM:

DocuSigned by:
8CACE76DAD12485...

Dave Fleishman, City Attorney
22- 1202 Sales Use Tax Examination - Muniservices
ATTEST:

DocuSigned by:
l(wnaw,vit, evfw

2. F.rar- Ewar4wro.. —
Annamarie Porter, City Clerk
18 DocuSign Envelope ID: B3822991- C24A- 43EA- A843- 30710C3B60BA

STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss

CITY OF SOLVANG )
I, Annamarie Porter, City Clerk of the City of Solvang, California do hereby certify that Resolution No. 22- 1202 was passed and adopted by the City Council of the City of Solvang at a regular meeting of said City Council held on the 12th day of December 2022, and thereafter signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:

AYES: CLARKE, INFANTI, ORONA, THOMAS, UHRIG
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
DocuSigned by:

Qlnanamaric, Perk
Annamarie Porter, City Clerk
22- 1202 Sales Use Tax Examination - Muniservices
19 20
DocuSign Envelope ID: 1ECB71FE- C651- 4475- A682- 5052698BA6C5

AMENDMENT AND NOVATION AGREEMENT AMONG

CITY OF SOLVANG,

MUNICIPAL RESOURCE CONSULTANT
AND

MUNISERVICES, LLC
THIS AMENDMENT AND NOVATION AGREEMENT ( the " Novation") is between Municipal Resource Consultants ( the " Assigning Party"), and MuniServices LLC, (the Assuming Party") both Delaware limited liability companies, with offices located at 5680 Trinity Parkway, Suite 120, Centreville VA 20120, and the City of Solvang, a California charter city, with offices located at 1644 Oak Street, Solvang, CA 93463 (" Remaining Party"), (together, the " Parties") is entered into this 11th day of March 2021 ( the " Novation Effective Date").

THE PARTIES MUTUALLY AGREE AS FOLLOWS:

The parties intend that this Amendment and Novation Agreement amends that certain Agreement between Municipal Resource Consultants and The City of Solvang, entered into on August 25, 2003 ( the "Agreement") (attached hereto as Exhibit A) for Sales and Use Tax Services and be a novation of the Agreement, and that the Assuming Party be substituted for the Assigning Party. The Remaining Party recognizes Assuming Party as Assigning Party' ssuccessor -in -interest in and to the Agreement. By this Amendment and Novation Agreement, the Assuming Party becomes entitled to all rights, title, and interest of the Assigning Party, in and to the Agreement inasmuch as Assuming Party is the substituted party to the Agreement as of and after the Effective Date. Remaining Party and Assuming Party shall be bound by the terms of the Agreement in every way as if Assuming Party is named in the Agreement in place of Assigning Party as a party thereto.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment and Novation Agreement as of the Novation Effective Date.

ASSUMING PARTY

MUNISERVICES, LLC
ocu Signed by:

By: 914Diut. Nt. Lt
77CAEA0D76254114...

Name:

Mike Melka
Title:

CFO
21 DocuSign Envelope ID: 1 ECB71 FE- C651- 4475- A682- 5052698BA6C5

ASSIGNING PARTY

MUNICIPAL RESOURCE CONSULTANT
Attest:

DocuSigned by:

By:

CLbb / HF byU bb41, 4...
rP
DocuSigned by:

By ` , E° 1 498
Name:

Paul Colangelo
Title: CEO

REMAINING PARTY

CITY OF SOLVANG
rDocuSigned
by:

By: BY.7RfB. 45, Bve4...
xenia Bradford
Name:

Acting City Manager Title:
22 MUNICIPAL RESOURCE CONSULTANTS
A partnership of John T. Austin, Inc. & Allen W. Charkow, Inc.

Southern California
32107 W. Lindero Canyon Road
Suite 225
Westlake Village, CA 91361
818) 991- 5220
Central California
209) 432- 6039
Northern California
415) 838- 1115
August 7, 1989
Ms. Bobbie Goodwin
Director of Finance
City of Solvang
P. O. Box 107
Solvang, CA 93463
Re: Sales Tax Enhancement and Information Services
Dear Ms. Goodwin:

Municipal Resource Consultants ( MRC) hereby proposes to provide self -funding sales tax audit and information services to the City of Solvang. The purpose, scope, qualifications, timing and compensation are set forth as follows:

1. FOREWORD
The City of Solvang, together with most of the other
cities in California, has been materially affected in
recent years by Proposition 13, economic recession,
State/ Federal
adverse
cutbacks and the 1986 Tax Reform Act' s
impact on the municipal bond market. With the
impending threat of more fiscal hardship and few
prospects for new revenue sources, it is vitally important that cities maximize revenue from existing revenue sources.

Clearly, these fiscal changes have made sales tax the
most important revenue sources for almost all California cities. For example, sales tax revenue for the City of
Solvang comprises approximately 29% of total General Fund revenue ( per Annual Report of Financial Transactions, State of California, 1987). 23 Ms. Bobbie Goodwi
City of Solvang
August 7, 1989

Page 2 ends

Sales tax revenue has generally been taken for granted
with cities simply accepting payments from the State
without question. However, for the reasons discussed in the enclosed MRC Insights newsletter ( Volume 1, No. 3), it is not uncommon for taxpayer reporting errors to cause
the local amount of sales tax to be misallocated -- or
distributed in error -- to the state pool, county pool or other jurisdictions.

The State Board of Equalization is charged with overall audit responsibility. However, staffing is not adequate to audit all aspects of sales tax reporting. The Board
concentrates primarily on auditing sales tax collections reported by the business. Very little audit takes place with regard to " point -of -sale" reporting, which results in many cities being subject to distribution errors.

These misallocation errors exist because businesses
report sales tax according to their convenience, which
is not always consistent with point -of -sales regulations.

Furthermore, these errors are often difficult to detect.

Because misallocations are not uncommon, it is essential that the sales tax resource be audited to determine
whether the City is receiving all of the sales tax
revenue to which it is entitled. It is also important
for the City to know more about the businesses producing its sales tax revenue in order to monitor, analyze and forecast their performance.

2. PURPOSE
Accordingly, MRC proposes to conduct an initial and
ongoing sales tax audit in order to detect and correct
point -of -sale distribution errors and thereby generate new sales tax revenue for the City. It should be
emphasized that MRC' s
proposed sales tax audit
encompasses all City businesses and not just the major
companies.

Much of the data developed as part of our audit service is common to that required to perpetually monitor, analyze and forecast revenue from the sales tax resource and provide corollary consulting services designed to
maintain and enhance the City' s revenue base. The Sales Tax Analysis & Reporting System ( STARS) Reports and
Corollary Consulting are presented under Section 4, on
pages 5 and 6.
24 Ms. Bobbie Goodw!
City of Solvang
August 7, 1989

Page 3 ends

3. SCOPE OF SERVICE
The scope of our proposed audit service includes, but is not limited to, the following procedures and tasks:
o Procure a
computer tape of sales tax permit records
from the State Board of Equalization.
o Establish master file in STARS from tape data
provided in previous task.
o
Input data from sales tax distribution reports provided by State Board of Equalization for six ( 6) most recent consecutive quarters. o Develop a
target list of potential point -of -sale
taxpayer reporting errors based on a
comprehensive inventory and evaluation of all businesses in the City of Solvang. These businesses are to be
analyzed based on proprietary guidelines established
by MRC, formulated through expert knowledge of
corporate mergers and acquisitions, sales versus use
tax, business marketing organization and methods, commercial sales tax reporting practices, and other conditions contributing to reporting errors.
o Meet with designated City official( s) to review
service objectives and scope, MRC workplan schedule, public relations and logistical matters ( e.g., temporary office space, telephone, photocopy, receptionist, data sources, etc.). We will also coordinator
establish an
and
appropriate
define logical
liaison with
checkpoints
the City' s
for
reviewing the project' s progress.

Note: with the
MRC' s
exception of this initial meeting, service requires no time or effort on the part of City staff. o Contact each target business to determine whether a
point - of -sale reporting error exists.

Note: this is accomplished with the highest regard to discretion and professional conduct, as evidenced by the fact that MRC' s sales tax audits have involved more than 100, 00 direct contacts with taxpayer businesses without a single complaint. Our
sales tax audits are predicated on a constructive
public relations approach which emphasizes the
importance of each business to the City and the mutual benefits of correcting reporting errors. 25 Ms. Bobbie GoodwiCity of Solvang
August 7, 1989

Page 4 ends

o Provide to the City and State Board of Equalization,
reports addressing each point -of -sale taxpayer reporting error individually, including the business name, address, telephone number, California sales
tax permit number, individuals contacted, date( s) of
contact, nature of business, reason( s) for error,
recommended corrective procedure and, if available, estimated sales tax revenue which should be forthcoming to the City of Solvang.
o Receive and process sales tax distribution reports
quarterly.
o Coordinate with the taxpayer and State Board of
Equalization to make the necessary corrections plus retroactive adjustments for eligible amounts improperly distributed in prior quarters.
o Monitor and analyze the quarterly distribution
reports with audit focus on the following:

Those accounts with previously reported
point -of -sale distribution errors to
ensure that the corrections are made for
current quarters plus retroactive
adjustments for eligible amounts
improperly distributed in prior quarters.

Those major accounts comprising 90% of the
City' stotal sales tax revenue to identify
any irregularities ( e.g., negative fund
transfers, significant decreases, etc.)
and ensure that the city is not getting less than it is entitled.

Those accounts having a use tax
designation to ascertain why the tax is
being classified as use tax rather than
sales tax.
26 Ms. Bobbie Goodwi
City of Solvang
August 7, 1989

Page 5 ends

4. STARS REPORTS & COROLLARY CONSULTING
Much of the data developed as part of our audit service is common to that required to perpetually monitor, analyze and forecast revenue from the sales tax resource and provide corollary consulting services designed to maintain and enhance the City' s revenue base. These services are offered in conjunction with MRC' s audit service.

The scope of our STARS Reports and Corollary Consulting services includes, but is not limited to, the following:

STARS Reports ( Sample Enclosed)
o
Input data from sales tax distribution reports
most
provided by State Board of Equalization for six ( 6) recent consecutive quarters. ( Note: This is done to provide two benchmark years in the initial report
two
to the City,.e., the four quarters ending quarters back, and the four quarters ending one quarter back. Amounts for the most recent quarter
are included in each STARS report, but are not used for benchmark purposes as many accounts are incomplete due to late -paying businesses. Those
businesses that pay late miss the cutoff for the
which
State' s
quarterly report of sales tax distribution, is the source of the payment data used in the STARS reports.) o Receive and process sales tax distribution reports quarterly. o Reorganize and refine our
data for the City utilizing
and Reporting System ( STARS)
computerized sales tax
MRC' s Sales Tax Analysis
o
Prepare and submit STARS reports on a
basis quarterly principally focusing on the major sales tax producers. Major sales tax producers are defined as those businesses meeting or exceeding a specified quarterly revenue threshold and comprising in aggregate 90% or more of the sales tax revenue
generated from businesses located in the City.
27 Ms. Bobbie Goodwi
City of Solvang
August 7, 1989

Page 6 ends

All major sales tax producers and business categories are monitored and analyzed quarterly based on reports to include the following:

Management Summary & Charts. Based on our analysis and evaluation of the STARS reports and other data, each quarterly report includes a comprehensive Management Summary. The Summary features a general analysis regarding statewide trends that may affect the City' s sales tax plus a specific analysis of the
City' s sales tax composition, changes and
performance. Twelve color charts are included in
each report to graphically illustrate the data and
analysis presented in the Summary. The Management Summary and Charts do not contain confidential information and can therefore be distributed to key City personnel and the City Council.

Major ( and Top 100) Sales Tax Producers. Ranks in
descending order according to level of sales tax
produced.

Business Classification. Groups and ranks major producers by business classification according to level of sales tax produced.

Sales Tax Trend Reports. Indicates growth and
decline comparisons by various categories for
forecasting and analysis.

Geo- Coding. Tracks sales tax performance within specific areas of the city ( e.g., key shopping centers, redevelopment project areas, downtown business districts, etc.) Charts and printed reports are included for each geo- area. ( Note:

Each client is entitled to at least one geo- area at
no charge. If numerous geo- areas are desired, there
many be a nominal charge. MRC will advise the City in advance of any such charge, which would be at MRC' s
cost).

Status Report. MRC cleans up addresses on all
permits and provides a status report on all changes to the sales tax files, that is equally useful for business tax enforcement. The report shows all new permits, address changes, owner changes and closed
permits and effectively replaces the yellow registration cards that are cumbersom to use. 28 Ms. Bobbie Goodwi
City of Solvang
August 7, 1989

Page 7 ends

By comparing the data which is in a clean address
order with the business tax files, unlicensed
business can be identified and billed, or business
tax records can be updated for new addresses or
owners, or purged if closed.

The " cleaned up" data from the State Board of Equalization can be transferred to the City' s computer via floppy diskette or 9 - track tape if the City desires to have the information for other purposes.

Corollary Consulting
o Make specific recommendations ( for City staff and/ or MRC) to further enhance the City' s revenue base in areas such as sales tax, use tax, property tax, business license tax, utility users tax, franchise tax and defined economic development goals.
o Provide City employees with post -audit sales tax
orientation:

Conduct technical seminar on California' slocal
sales tax distribution process.

Train staff in the fundamentals of sales tax
auditing should the City desire to assume
responsibility for future maintenance of local
retail accounts internally.
o Analyze list of City' s major sales tax producers in order to assist the City in developing a public relations program to prevent the loss of these important businesses. o Profile for Economic Development/ Community Redevelopment and Chamber of Commerce personnel the most economically desirable/ undesirable types of
developments/ business users and the reasons why.

Provide a list of businesses located in the City that are not presently producing sales tax to the City of Solvang, but could be through constructive changes in marketing and/ or purchasing procedures.
o Assist in defining specific geographic areas for which the City would have an interest in knowing the sales tax produced ( e.g., within Community Redevelopment Agency boundaries). 29 Ms. Bobbie Goodwi
City of Solvang
August 7, 1989

Page 8 ends

5. TIMING
We are prepared to commence the proposed service within 10 days following receipt of City Council contract
authorization and resolution designating MRC as the
authorized City contractor to examine sales and use tax records ( see Exhibit C).

The preliminary workplan schedule ( Figure 5-1) following this page presents the time frames envisioned for
accomplishment of the prescribed tasks. As indicated,
the initial field audit report identifying point -of -sale taxpayer reporting errors is normally provided within 60 to 90 working days following receipt of authorization.

The QDR audit reports are provided within 30 working days following receipt of the quarterly distribution reports.

With regard to the optional services, STARS reports are provided on a quarterly basis within 30 working days
following receipt of the quarterly distribution reports.

The corollary consulting services are provided on an
ongoing basis in conjunction with the delivery of our
ongoing audit and STARS reports.
30 SALES
TAX

ENHANCEMENT &

INFORMATION

SERVICES

SCHEDULE &

PROGRESS
CHART

PRELIMINARY)

DESCRIPTION

CONTRACT

AUTHORIZATION

REQUEST
PERMIT

LISTING &

QUARTERLY
DIST .

REPORTS
MONTH
1 x
xxxx
MONTH
2 MONTH
3 MONTH
4 MONTH
5 MONTH
6 MONTH
7 MONTH
8 MONTH
9 MONTH
INPUT
PERMIT

LISTING &

QUARTERLY
DIST .

REPORTS
xxxxxxxxx

PREPARE,

DELIVER &
REVIEW
WITH
CITY

INITIAL
STARS

REPORTS
x

INVENTORY &

ANALYZE
ALL

BUSINESSES
IN
CITY

DEVELOP
TARGET
LIST
OF

POTENTIAL

MISALLOCATIONS
MX

ORIENTATION

MEETING

CONTACT
EACH

BUSINESS
ON
TARGET
LIST
x xxxxxxxx

PREPARE,

DELIVER &
REVIEW
WITH
CITY
INTIAL
REPORT

IDENTIFYING

MISALLOCATED

ACCOUNTS
x

COORDINATE
WITH

TAXPAYER &
SBE
TO

CORRECT

MISALLOCATED

ACCOUNTS

RECEIVE,

PROCESS,

MONITOR &

ANALYZE

QUARTERLY

DISTRIBUTION

REPORTS

ONGOING

IDENTIFICATION &

CORRECTION
OF

MISALLOCATED

ACCOUNTS

DELIVER

ONGOING

AUDIT &
STARS

REPORTS

QUARTERLY

PROGRESS

REPORTS
420 xxxx
FULL
TIME
EFFORT
PART
TIME
EFFORT
AS

REQUIRED
PURSUE
TO

CONCLUSION
FIGURE
15-
Ms. Bobbie Goodwi..

City of Solvang
August 7, 1989

Page 10 ends

6. QUALIFICATIONS
Based on a proven track record of consistently impressive results, MRC has established a
reputation as the
undisputed leader in providing sales tax enhancement
services to California municipalities.

MRC' s sales tax audits are producing, in aggregate, more than $ 12 million annually in new sales tax income for the cities we serve. Our audits have also resulted in the
detection and correction of the largest recovery adjustments ever made by the State Board of Equalization.

MRC' s
proposed service is automatically self -funding because our compensation is contingent on performance and entirely derived from new income which would not
otherwise have been realized by the City. Unlike most
tax audits, our service produces new revenue without
causing any additional tax liability for business.

California clients served represent a wide and varied mix of cities with populations ranging from less than 2, 000 to more than 700, 00, and annual sales tax revenue from less than $ 250, 00 to more than $ 55 million.

Qualifications and references are attached under Exhibit A.

The uniqueness of our service and significant results
achieved are directly attributable to our employing proprietary techniques borne out of the principals' combined 27 years of sales tax audit experience. 32 Ms. Bobbie Goodw!
City of Solvang
August 7, 1989

Page 11 ends

7. COMPENSATION
In order to make the proposed services self -funding for the City of Solvang, MRC' s
compensation for providing the
initial and ongoing sales tax audits and STARS reports is entirely predicated and contingent upon our ability to
produce new sales tax revenue for the City, further
described as follows:

Sales Tax Audit Service
MRC' s
compensation for providing the audit service is 25%
of new sales tax revenue realized by the City as a result of MRC identifying and correcting the related point -of - sale distribution error. Said 25% applies to each
correction for fund transfers and the first six
consecutive reporting quarters following completion of
the audit by MRC and confirmation of corrections by the State Board of Equalization.

Sales tax audit invoices are submittedquarterly after
the City has received the revenue from the correction and quarterly distribution report confirming it. Each
invoice is to include the business name, permit number, local allocation amount received by the City and amount due MRC. Invoices are due and payable upon receipt.

STARS Reports
MRC proposes to provide STARS Reports for $ 600 for the first year, or $ 150 per quarter, payable only after the City has received the quarterly STARS report( s) and
sufficient funds to cover the STARS charges from the
City' s 75% share of new sales tax revenue produced from MRC' s audit service. The following computation illustrates a hypothetical example:

New
for
sales tax revenue produced $ 10, 000 City from MRC audit service Less MRC compensation for audit - 2, 500 service @ 25%
City' sshare of new sales tax
revenue @ 75%
Less STARS charge for full year @ $ 150 per quarter
Net new sales tax revenue to City after compensating MRC for audit service and STARS reports
7, 500
600
6, 300
33 Ms. Bobbie Goodw'
City of Solvang
August 7, 1989

Page 12 ends

Should MRC' s audit service fail to generate sufficient new sales tax revenue for the City to cover the STARS
charges out of the City' s 75% share, then MRC shall
absorb the shortfall amount.

Expenses
All expenses incurred by MRC in providing the audit
service and STARS reports are absorbed by MRC. These
expenses include items such as employee salaries and
benefits, insurance, airfare, auto rentals, meals,
lodging, keypunching, computer processing, clerical,
communications ( e.g., personal meetings, telephone, mail, etc.) photocopying, overhead and miscellaneous out -of - pockets for consumable supplies and research materials
such as maps, directories, etc.
34 Ms. Bobbie Goodly!
City of Solvang
August 7, 1989

Page 13 ends

8. CERTIFICATION OF CONFIDENTIALITY
Section 7056 of the State of California Revenue and
Taxation code specifically limits the disclosure of
confidential taxpayer information contained in the
records of the State Board of Equalization. This section specifies the conditions under which a city may authorize persons other than city officers and employees to examine State Sales and Use Tax records ( see sample resolution attached under Exhibit C).

The following conditions specified in Section 7056 ( b), 1) of the State of California Revenue and Taxation Code are hereby made part of this contractual agreement
entered into between the City of Solvang and Municipal
Resource Consultants ( Consultant).

A. Consultant is authorized by this agreement to examine sales and use tax records of the Board of Equalization
provided to City pursuant to contract under the Bradley - Burns Uniform Sales and Use Tax Law.

B. Consultant is required to disclose information
contained in, of derived from, those sales and use tax
records only to an officer or employee of the City who is authorized by resolution to examine the information.

C. Consultant is prohibited from performing consulting
services for a retailer during the term of this
agreement.

D. Consultant is prohibited from retaining the
information contained in, or derived from, those sales
and use tax records, after this agreement has expired.

Information obtained by examination of Board records
shall be used only for purposes related to collection of local sales and use tax or for other governmental
functions of the City as set forth by resolution adopted pursuant to Section 7056 ( b) of the Revenue and Taxation Code.

The resolution shall designate the Consultant as a person authorized to examine sales and use tax records and
certify that this agreement meets the requirements set
forth above and in Section 7056 ( b),( 1) of the Revenue and Taxation Code.

Consultant hereby certifies that any and all information utilized in the conduct of work performed is to be
utilized only for those purposes authorized by the City and by the Bradley - Burns Uniform Local Sales and Use Tax Law.
35 Ms. Bobbie Goodw4
City of Solvang
August 7, 1989

Page 14 ends

9. SUMMARY & CONCLUSION
MRC' s audit and information services are designed to
detect and correct point -of -sale taxpayer reporting
errors and thereby generate new sales tax revenue for the City of Solvang on an ongoing basis.

The STARS reports provide the essential information to
monitor and analyze revenue from the sales tax resource and develop a
program for maintaining and enhancing the
City' s revenue base.

MRC' s audit and information services are automatically self -funding because our compensation is contingent on performance and entirely derived from new income which
would not otherwise have been realized by the City.

Should you have any questions regarding the proposed services or our compensation, we are prepared to respond promptly.

Should the City decide to use this proposal and the
general provisions attached under Exhibit B ( which are incorporated into this agreement) as the contract, please indicate acceptance by returning an executed copy to my attention. The original is for your records.

For your convenience, a
sample memo and resolutions for
Council are attached under Exhibit C.

ACCEPTED FOR ACCEPTED FOR MUNICIPAL

CITY OF SOLVANG RESOURCE CONSULTANTS
BY: X- CJI` - A( 6154. LtJs/. By: aLcAZA,/
aohn T. Austin, Inc.

Title: /)/re - or „- f
r' na n Title: Partner
Date: 4 us .
s
00058JAP/ lj
Date: August 7, 1989
36 EXHIBIT A

MUNICIPAL RESOURCE CONSULTANTS

QUALIFICATIONS & REFERENCES

GENERAL QUALIFICATIONS
Municipal Resource Consultants ( MRC) specializes in providing revenue enhancement services to California municipalities in the areas of sales tax, use tax, business license tax,
property tax, franchise tax and utility users tax.

MRC' s revenue enhancement services are complemented by geo- based management information systems and consulting in areas such as strategic planning, economic development and
redevelopment.

Given that revenue enhancement services are, by their nature, performance -driven, MRC' s compensation is based on the actual
results achieved.

PRINCIPALS
John T. Austin - Mr. Austin has been an economic development and tax consultant to the public sector for more than sixteen years, principally focused on state and local sales, use and property taxes. He is a graduate of the University of
Southern California where he majored in business economics and marketing.

Allen W. Charkow - Mr. Charkow has been in municipal finance for fifteen years, thirteen of which were in the capacity of Director. He has served in the California cities of Fresno, Garden Grove, Cypress and Sunnyvale. He is a graduate of the University of Santa Clara in the field of business management. Mr. Charkow pioneered sales tax audit and computerized information systems for sales tax analysis on behalf of California cities. He has also applied sales tax expertise to enhance economic development projects as a key member of City economic development teams.

AUDIT STAFF
MRC' s audit staff has a working knowledge of sales/ use tax law, State Board of Equalization administrative procedures, tax- preparer reporting procedures, and the mechanics of sales/ marketing/ distribution practices for manufacturers engaged in business - to -business sales from within and outside of California.
37 LEGAL COUNSEL
When MRC' s clients have questions or issues related to sales/ use tax law, they are invited to utilize MRC' s counsel at no charge.

MRC' s
counsel, Joseph A. Vinatieri, is a partner in the
Whittier law firm of Bewley, Lassleben & Miller where he specializes in matters of California state and local taxation, including sales and use tax, franchise/ income tax and property tax. Mr. Vinatieri is former deputy to Honorable Ernest J.

Dronenburg, Jr., and member of the California State Board of Equalization where he was responsible for preparation of franchise/ income tax, property tax and sales and use tax cases to be heard by Judge Dronenburg. He was also responsible for legislative, administrative and political liaisons. Mr.

Vinatieri received his B. A. degree, cum laude, from
Westminster College and his J.D. degree from the University of San Diego. He is chairman of the State and Local Subcommittee of the Tax Section of the Los Angeles County Bar Association and a member of the Tax Section of the California State Bar.

He is also a member of the Institute of Property Tax for which he has spoken nationally. Mr. Vinatieri has also spoken for the California Certified Public Accountant Foundation, as well as other professional groups on topics relating to his
practice.

REPRESENTATIVE CLIENTS - SALES TAX ENHANCEMENT SERVICES MRC has been providing sales tax enhancement services to California municipalities since 1978. During that 11 - year period MRC' s services have produced, in aggregate, more than 12 million annually in new sales tax income for the cities served.

The misallocations detected and corrected by MRC have also resulted in the largest recovery adjustments ever made by the State Board of Equalization.

California cities served by MRC represent a wide and varied mix, with populations ranging from less than 2, 000 to more than 700, 00 and annual sales tax income from less than 250, 00 to more than $ 55 million. A representative list of MRC clients is provided on the following page.

In order to better serve our client base, which is evenly split between Northern and Southern California, audits are staffed out of our San Ramon and Westlake Village offices, with data processing support and analysis from our office located in Fresno ( Madera).
38 REPRESENTATIVE LIST OF MRC CLIENTS

NORTHERN CALIFORNIA
Population over 250, 00)
City of Oakland
One City Hall Plaza
Oakland, CA 94612
Contact: Mr. Larry Lubran ( 415) 273- 3084
City of Sacramento
915 I Street, #104
Sacramento, CA 95814
Contact: Mr. Michael L. Medema
City of San Jose
801 N. First Street, # 227
San Jose, CA 95110
Contact: Ms. Deborah Kelly
916) 449- 5724
408) 277- 4288
Population from 100, 00 to 250, 000)
City of Concord
1950 Parkside Drive
Concord, CA 94519
Contact: Ms. Karma Ruder ( 415) 671- 3078
City of Santa Rosa
100 Santa Rosa Avenue
Santa Rosa, CA 95402- 1678
Contact: Mr. Ronald L. Bosworth ( 707) 576-315
City of Sunnyvale
650 W. Olive Avenue
Sunnyvale, CA 94086- 3707
Contact: Ms. Amy Chan ( 408) 730-398
Population from 50, 000 to 100, 00)
City of Antioch
P. O. Box 130
Antioch, CA 94509
Contact: Mr. Roy Poertner
City of Danville
510 La Gonda Way
Danville, CA 94526
Contact: Mr. Tom Hansen
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Contacts: Ms. Emily Harrison
Mr. Mike Northrup
415) 778- 0952
415) 820- 6337
415) 329- 2533
39 City of Redwood City
P. 0. Box 391
Redwood City, CA 94064
Contact: Mr. Gul Ramchandani
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403
Contact: Mr. John L. deRussy
City of Santa Clara
1500 Warburton Avenue
Santa Clara, CA 95050
Contact: Ms. Kristin Machnick
City of South San Francisco
315 Maple Avenue
South San Francisco, CA 94083
Contact: Ms. Pauline Marx
City of Walnut Creek
1666 No. Main Street
Walnut Creek, CA 94596
Contacts: Ms. Arlene Alperin
Mr. Rod Gould
415) 780-071
415) 377-400
408) 984- 3261
415) 877-507
415) 943- 5820
Population less than 50, 000)
City of Campbell
70 N. First Street
Campbell, CA 95008
Contact: Mr. Geoffrey Whittaker ( 408) 866- 2111
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95015
Contact: Mr. Blaine Snyder
City of Menlo Park
701 Laurel Street
Menlo Park, CA 94025
Contact: Mr. Russ Scotten
City of San Bruno
567 El Camino Real
San Bruno, CA 94066
Contact: Ms. Molly Smith
City of San Rafael
1400 Fifth Avenue
San Rafael, CA 94915
Contact: Mr. Ransom Coleman
408) 252- 4505
415) 858- 3362
415) 877-880
415) 485- 3060
40 City of Union City
34009 Alvarado- Nites Road
Union City, CA 94587
Contact: Ms. Zenda James
City of West Sacramento
P. O. Box 802
West Sacramento, CA 95691
Contact: Mr. Leigh Keicher
415) 471- 3232
916) 373- 5816

SOUTHERN CALIFORNIA
Population over 250, 00)
City of Long Beach
333 W. Ocean Boulevard
Long Beach, CA 90802
Contacts: Mr. James Algie ( 213) 590- 6024
Mr. Tony Walstrum ( 213) 590- 6169
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
Contacts: Mr. Rod Coloma
Mr. Sid Yeates ( 714) 647- 5422
Population from 100, 00 to 250, 00)
City of Bakersfield
1501 Truxtun Avenue
Bakersfield, CA 93301
Contact: Mr. Greg Klimko ( 805) 326-742
City of Fullerton
303 W. Commonwealth
Fullerton, CA 92632
Contact: Ms. Barbara Henderson ( 714) 738- 6520
City of Riverside
3900 Main Street
Riverside, CA 92522
Contact: Ms. Barbara Steckel ( 714) 782- 5660
City of San Bernardino
300 North " D" Street
San Bernardino, CA 92418
Contact: Mr. Andrew Green ( 714) 384- 5242
City of Santa Clarita
23920 Valencia Blvd.

Santa Clarita, CA 91355
Contacts: Ms. Andrea Daroca
Ms. Terri Maus ( 408) 429- 3589
41 City of Torrance
3031 Torrance Blvd.

Torrance, CA 90503
Contacts: Ms. Mary Giordano
Mr. Ben Murdoch 213) 618- 5855
Population from 50, 000 to 100, 000)
City of Irvine
17200 Jamboree Road
Irvine, CA 92713
Contact: Mr. Jeffrey E. Niven ( 714) 660- 3620
City of Santa Monica
1685 Main Street
Santa Monica, CA 90401
Contact: Mr. Ralph Bursey ( 213) 458- 8281
City of South Gate
8650 California Avenue
South Gate, CA 90280
Contacts: Mr. Ken Flewellyn
Mr. Ken Hammon ( 213) 563- 9525
City of Ventura
501 Poli Street
Ventura, CA 93002
Contact: Mr. Everette Garmon ( 805) 654- 7855
Population less than 50, 000)
City of Brea
Number One Civic Center Circle
Brea, CA 92621
Contact: Mr. John Stark ( 714) 990- 7675
City of Corona
815 W. 6th Street
Corona, CA 91718- 0940
Contact: Mr. John Grindrod ( 714) 736- 2376
City of Culver City
P. O. Box 507
Culver City, CA 90232
Contacts: Ms. Sue McCabe
Mr. Eric Shapiro ( 213) 202- 5757
City of Fontana
P. O. Box 518
Fontana, CA 92335
Contacts: Mr. Rodger Neve ( 714) 350- 7666
City of La Habra
P. O. Box 337
La Habra, CA 90633
Contact: Ms. Sara Morris ( 213) 905-729
42 City of Manhattan Beach
1400 Highland Avenue
Manhattan Beach, CA 90266
Contact: Mr. Merle Lundberg ( 213) 545-621
City of Santa Fe Springs
11710 Telegraph Road
Santa Fe Springs, CA 90670
Contact: Mr. Donald A. Nuttall ( 213) 868- 0511
City of Tustin
300 Centennial Way
Tustin, CA 92680
Contact: Mr. Ronald A. Nault ( 714) 544- 8890
43 EXHIBIT B

GENERAL PROVISIONS

1. Independent Contractor. At all times during the term of this Contract, Municipal Resource Consultants ( Consultant) shall be an Independent Contractor and shall not be an
employee of the City of « City» (City). City shall have the right to control Consultant only insofar as the results of Consultant' sservices rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement.

2. Liability. City shall not be called upon to assume
any liability for direct payment of any salaries, wages, or other compensation to any Consultant personnel or
subcontractor performing services hereunder for City, or any liability other than provided for in this Agreement.

City shall not be liable for compensation or indemnity to any Consultant employee or subcontractor for injury or sickness arising out of his/er employment, or for any negligent actions of the Consultant or its employees.

All persons employed in the performance of such services and functions shall be employees of Consultant, and as such shall not, for any purposes, be considered employees of City and therefore shall have no right to any City service, civil service, or other City status.

3. Subcontracts. Any subcontracts entered into by Consultant for services to be rendered towards the completion of Consultant' s
portion of this Agreement shall be for
Consultant' s benefit alone, and as such shall be its
responsibility with no liability resting on the City. Consultant agrees to provide a list of all subcontractors to be used in connection with services to be rendered toward the completion of its portion of this Agreement to the City within ten ( 10) working days of execution of this Agreement.

4. Licenses, Permits, Etc. Consultant represents and
warrants to City that he has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice his profession.

Consultant represents and warrants to City that Consultant shall, at his sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for
Consultant to practice his profession.
44 GENERAL PROVISIO'"
PAGE 2

7. Consultant
in writing, Consultant
implied to act on behal
an agent. Consultant
implied, pursuant to
obligation whatsoever.

5. Time. Consultant shall devote such time to the
performance of services pursuant to this Agreement as may be reasonably necessary for satisfactory performance of
Consultant' s
obligations pursuant to this Agreement. Neither
party shall be considered in default of this Agreement to the extent performance is prevented or delayed by any cause, present or future, which is beyond the reasonable control of the party.

6. Insurance.
a) Public Liability. During the term of this
Agreement, Consultant shall maintain in
full force and effect a policy of public
liability insurance with minimum coverages
as follows: $ 1, 000,00 for injury to one
person in any one occurrence; $ 1, 000,00
aggregate; and, $ 50, 000. for property
damage. Consultant shall cause the City,
its officials and employees to be named on
all liability policies described above as
insured as respects: ( 1) activities
performed for the City by or on behalf of
the named insured, ( 2) products and
completed operations of the Named Insured,
and ( 3) premises owned, leased or used by
the Named Insured.
b) Worker' sCompensation. During the term of
this Agreement, Consultant shall fully
comply with the terms of the law of
California
compensation.
concerning
Said compliance
worker' s
shall
include, but not be limited to,
maintaining in full force and effect one
or more policies of insurance insuring
against any liability Consultant may have
for worker' s
compensation.
onsu ant Not Agent. Except as City may specify
shall have no authority, express or
f of City of any capacity whatsoever as
shall have no authority, express or
this Agreement to bind City to any

8. Assignment Prohibited. No party to this
Agreement may assign any right or obligation pursuant to this agreement. Any attempt of purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect.
45 GENERAL PROVISIO'
PAGE 3

9. Personnel. Consultant shall assign only
competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Consultant to perform services pursuant to this Agreement, Consultant shall remove any such person immediately upon receiving notice from City of the desire of City for the removal of such person or persons.

10. Standard of Performance. Consultant shall
perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices his profession. All products of whatsoever nature which Consultant delivers to City pursuant to this Agreement shall be prepared in a substantial, first class and
workmanlike manner and conform to the standards of quality profession.
normally observed by a person practicing in Consultant' s

11. City Representative. The City Manager or his
designee is the representative of the City and will administer this Agreement for the City.

12. Termination. This Agreement may terminate on
ten ( 10) days written notice by either party, or within such time as both parties may find necessary to conclude the work currently under way and to summarize Consultant' s
findings for
City.

13. Indemnity and Hold Harmless. Consultant shall
assume the defense of, and indemnify and save harmless, the City, its officers, employees, and agents, and each and every one of them, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from, the performance of the work, provided that such action, damage, claims, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to, or destruction of property, whether upon or off the work, including the loss of use thereof, and is caused in whole or in part by any negligent act or omission of the Consultant, and subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not it is caused in part by a party indemnified hereunder.
46 GENERAL PROVISIO'-
PAGE 4

14. Equal Employment Opportunity: During the
performance of this Agreement, Consultant, for itself, its assignees and successors in interest, agrees as follows:
a. Compliance With Regulations: Consultant shall
comply with the Executive Order 11246 entitled " Equal Employment Opportunity,: as labor regulations ( 41 C. F.R. Part 60), hereinafter referred to as the " Regulations."
b. Nondiscrimination: Consultant, with regard to the
work performed by it after award and prior to completion of the work pursuant to this Agreement, shall not discriminate on the ground of race, color, religion, sex or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. c. Solicitation for Subcontractor, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiations made by Consultant for work to be performed under any subcontract, including procurements of materials or equipment, such potential subcontractor or supplier shall be notified by Consultant of Consultant' s obligation under this Agreement and the Regulations relative to nondiscrimination on the ground of race, color, religion, sex or national origins.
all
d. Information and Reports: Consultant shall provide information and reports required by the Regulations, or orders and instructions issued pursuant thereto, and will permit access to its books, records, accounts, other sources of information and its facilities as may be determined by the City to be pertinent to ascertain compliance with such Regulations, orders and instructions. Where any information required of Consultant is in the exclusive possession of another who fails or refuses to furnish this information, Consultant shall so certify to the City and shall set forth what efforts it has made to obtain the information. e. Sanctions for Noncompliance: In the event of
noncompliance by Consultant with the nondiscrimination
provisions of this Agreement, the City shall impose such contract sanctions as it may determine to be appropriate, including, but not limited to:
1) Withholding of payments to Consultant under the
contract until Consultant complies;
2) Cancellation, termination, or suspension of the
Agreement, in whole or in part.
47 GENERAL PROVISIODT"
PAGE 5
f. Incorporation of Provisions: Consultant shall
include the provisions of paragraphs a
through e in every
subcontract, including Regulations, order, or instructions issued pursuant thereto. Consultant shall take such action with respect to any Regulations, order or instructions issued pursuant thereto. Consultant shall take such action with respect to any subcontract or procurement as the City may direct as a means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event Consultant becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a result of such direction, Consultant may request City to enter such litigation to protect the interests of the City.
48 CITY COUNCIL STAFF REPORT
AGENDA ITEM 6. a
SOLVANG Meeting Date: January 23, 2023
SUBJECT: Approve FY 22-4 Grant Funding Process timeline.

PREPARED BY: Wendy Berry, Administrative Services Director Annamarie Porter, City Clerk
DISCUSSION:

The City of Solvang recognizes the value of Non- profit organizations' contributions to our community, through special programs, or holding special events within the City, and has maintained a Grant Funding Policy whereby the City Council reviews grant funding requests each year during the annual budget development process. The City Council adopted policy for FY 23-4 focused on senior services, Veterans services and minors with disabilities and provides criteria to apply, with an application with guidelines for grant funding considerations. Per prior Council direction, Staff was directed to provide for a process and application window, so that potential applicants were not only aware of the program, but requests would be received in the timeline provided versus receiving funding requests from the City Council throughout the year.

The proposed timeline to open the application period is from February 1, 2023 through March 31, 2023.

This would provide adequate time for Staff to review applications for qualifications, and to bring those qualified requests back to Council during the budget development process.

ALTERNATIVES:

Council could elect not to continue with the grant funding program or provide alternative direction to Staff.

FISCAL IMPACT:

During the Budget Development Process, City Council could adopt a cap to the total amount of funding allocated to the grants program, or a per -entity cap which would then be included in the adopted budget.

ATTACHMENTS:

A. Grant Funding Policy and Application
B. Special Events Grant Funding policy, guidelines, and application. 49 SOLVANG

CITY OF SOLVANG

HUMAN SERVICES GRANT FUNDING
POLICIES and PROCEDURES
Attachment A
The Solvang City Council recognizes the importance of the human services and programs and organizations that serve community residents. As part of the annual budget process and financial plan development, the City Council may consider appropriation of such funds as it deems prudent and reasonable to award grants to non- profit community service organizations.

Policy
A. Non - Profit / Not for Profit. Tax -exemption is the result of a nonprofit organization being recognized
501( c)( 27).
by the IRS as being organized for any purpose allowable under 501( c)( 3) — B. Grants Shall Not be available to organizations who intend to directly or indirectly act as a conduit to provide grant funding to other organizations.

C. The City will prioritize funding for senior citizen services, Veterans, and minors with disabilities.

D. City grant funds Shall Not be used by the agency for administrative/ overhead types of costs.

E. Applicants must be in good standing with the IRS, FTB and current with their registration with the Attorney General / Department of Justice.

F. Applicants agree to sign the City' s
Standard Grant Agreement, abide by all conditions and
requirements, and shall present a report of a detailed accounting of how the funds were spent.

Procedures
A. The application period for Organizations wishing to apply for grant funds will be opened on February 1, 2023 and deadline to apply will be March 31, 2023. In addition to the completed Application, Applicants are to provide the last three most recent 990' sfiled with the IRS.

Completed applications may be subsidized with additional information regarding the Organization and their programs. Email applications to CityHall@CityofSolvanq. com or deliver to City Hall ( 1644 Oak Street, Solvang, CA 93463)
B. Staff will review applications for completeness and qualifications based upon grant program parameters and will provide the Council with analysis whether the grant applications qualify under this program.

C. Copies of all funding applications received will be provided to all City Council members and will be considered by Council as part of the budget adoption hearing and will be a public record.

D. A representative from the requesting organization must be available for questions from City staff and/ or City Council related to their grant funding application and must attend and present at the annual City budget hearing. Following adoption of the annual City budget and execution of City standard Grant Funding Contract with the City, the City will disburse approved funds within 30 days.
50 CITY OF SOLVANG

HUMAN SERVICES GRANT FUNDING

APPLICATION

1. Legal Organization/ Agency Name and dba if applicable:

2. Total funding request:

3. Contact Person Name, Title within the Organization, Email and phone number:

4. Mailing Address:

5. Physical Address:

6. Organization' spurpose? Goals and objectives?

7. Program of the funding request? Provide a detailed accounting of what specific program the granted funds will be used for?

8. How many Solvang residents will be impacted by the proposed use of the grant funds?

9. What is the organization' stotal budget?

10. What are the sources of revenue for your organization? How are you funded? 51 SOLVANG
Attachment B
Special Event Grant Application Program
FY 2023 - 24 Information
The City of Solvang ( City) recognizes the social and economic benefits associated with special events.

The opportunity to apply will open on February 1, 2023. The application deadline is March 31, 2023. This application period is for events that take place July 1, 2023, through June 30, 2024.

The following types of Solvang- based events are eligible to apply:

1. Community and Charitable- Serve or benefit locally based organizations and causes and/ or provide recreational, cultural, social benefits to Solvang residents. Solvang- based 501( c)3 nonprofit organizations and events that serve the Solvang community specifically. These events pay or incur City of Solvang fees through the Special Event Permit process.

2. Economic Benefit Events - Large- scale events, based in Solvang, that promote Solvang regionally, attract visitors, and provide measurable, economic benefits to the City. Economic Benefit Events must demonstrate the following:

The event does or can attract visitors from throughout Southern, Central and Northern California and other regions.

It must have at least 3, 000 participants throughout the event.

The event organizers have a strategic, measurable marketing plan and can immediately produce the plan and metrics from past years upon the City' srequest.

Event organizers must clearly demonstrate how the event will provide substantive and measurable economic benefits to the City by supporting tourism, generating hotel room nights, supporting local business, and providing measurable exposure.

Types of Special Event Support
A. Community and Charitable— Grants may be awarded and set at levels that correlate to the amount of City fees the applicant is expected to pay. Successful applicants may be awarded grants in the form of credits toward their City fees. The City does not provide cash to these grant awardees. Grants awarded may but should not be expected to cover all of an event organizer' scosts/ fees associated with City oversight. If an awardee incurs fees higher than the grant award, they will owe the City the difference. If the awardee' scosts are lower than was projected during the grant award process, the City will retain the difference.

The application review process will consider the size and scope of the event and how well it meets the program' sevaluation criteria. The City may require an agreement with grant awardees in this category.

All agreements will include right to audit language and that the organizer submit an event conclusion report, which includes the event' s balance sheet and income statement.

B. Economic Benefit Events — Grants will be available at set, not -to -exceed levels based upon an evaluation of the event budget, the estimate of City fees, and the estimated economic benefits to the City. The City' sfinancial support should represent no more than 25 percent of the overall event expenditure budget. All agreements will include right to audit language. All economic benefit events will be required to submit objectives and performance measures from the previous year' s event with the application. This will assist in evaluating the event' s marketing and economic impact.

Eligibility Criteria
To be eligible to receive City support, applicants must demonstrate that:
52 The entire Community and Charitable event take place within Solvang. All, or a majority of, the economic development event takes place within Solvang.

The event is scheduled to take place between July 1, 2023, and June 30, 2024, and the exact date( s), time( s) and location ( within Solvang) have been determined.

The event is not financially dependent on receiving City support.

The event is sponsored, hosted and organized by a Solvang or Santa Barbara County -based 501( c )3 non- profit organization or a Solvang community or neighborhood organization.

The applicant has no outstanding debt due to the City of Solvang.

The event does not need to be free of charge but should be accessible to the entire community/ public.

Additional requirements for Economic Benefit Events:

The event does or can attract visitors from throughout Southern, Central and Northern California and other regions.

It must have at least 3, 000 participants throughout the event.

The event organizers have a strategic, measurable marketing plan and can immediately produce the plan and metrics from past years upon the City' srequest.

Ineligibility
The City will not provide financial support to:

Events that benefit for- profit enterprises.

Events that serve a political purpose or are sponsored by political organizations.

Event organizers and organizations that have not fulfilled previous City sponsorship or special event obligations or have an outstanding debt to the City of Solvang.

Individuals.

Invitation - only events; those not open to the general public.

Qualification Criteria
To qualify to be considered to receive City special event support, all applications must comply with the following:

Applications submitted on time and are 100 percent complete. Applicants who do not fully comply with the instructions will not be considered.

ALL events must include a copy of the complete event budget, which clearly states the anticipated revenues and expenditures. Potential City support should not be listed as a revenue line item.

Must demonstrate strong financial management over the event, including cost effectiveness.

Only one event per application; however, there is no limit to the number of applications an organization can submit.

Economic Benefit Event applications must provide a post -event report on measurable objectives and performance numbers at the conclusion of their event.

Evaluation Criteria
A. Community & Charitable Events
Applications will be reviewed and evaluated based on the following criteria:
53 The event serves, involves, and / or promotes Solvang, its residents, schools and/ or businesses.

The event directly or indirectly benefits the Solvang community by supporting its schools, cause - related or non- profit organizations; offering educational, cultural or arts experiences; or providing recreational or social activities.

The event benefits a Solvang or Santa Barbara County -based non- profit organization or Solvang community or neighborhood organization.

The event pays City fees.

B. Economic Benefit Events
Applications will be reviewed and evaluated based on the following criteria:

The event delivers substantive and measurable economic benefits to the City.

The event organizers utilize strategic and measurable marketing practices in planning and implementing the event. These measurables will be included on the application and a post - event performance report will be required at the conclusion of your event.

The event enhances the quality of life within Solvang with cultural, social or educational activities of interest to the community.

The event attracts visitors to Solvang from all regional markets.

The event promotes Solvang as a highly desirable place to visit, recreate, live and work.

The event directly or indirectly benefits or promotes Solvang businesses.

The submitted post -event measurable objectives and performance measures must demonstrate how the event will provide substantive and measurable economic benefits to the City.

Other Requirements
Successful applicants —under both Community and Charitable and Economic Benefit events —will be expected to follow the City' sseparate, Special Event Permit Process and submit all necessary forms, insurance and fees as required. Applications that do not meet the requirements and are not submitted within the specified deadlines risk forfeiting their City Special Event support.

Economic Benefit Event Recipients Only:

Economic Benefit event grant recipients must agree to provide the event' sfinancial statements and allow the City to conduct its own review of them, if requested.

Additional Information
There is no guarantee that the City will be able to provide all, part, or any of the financial support requested by each applicant. Thus, applicants should not make commitments on the expectation of receiving City support. Recurring events do not automatically receive funding. Economic Benefit Grants are provided based on analysis of related City fees and economic benefits the City will derive from the event. All applications received by the deadline will be evaluated based on the eligibility, qualification and evaluation criteria and requirements as outlined. Recommendations will be forward to the City Council for final review and approval. The City Council can approve, amend or deny any recommendation.
54 S
The Danish Capita[ ofAmerica
City of Solvang
G Special Events Guide
For more information:

Mail: City of Solvang
1644 Oak Street, Solvang, CA 93463
Phone: 805- 688- 5575
Email: CityHall@CityofSolvang. com
55 SOLVANG
The Danish Capita[ ofAmerica
City of Solvang — Special Events
Table of Contents
Special Events Guidelines 3
Introduction 3
Event Definitions 3
Application and Timeline Requirements 3
Denial of a Special Event Permit 4
Special Event Application Supplements and Coordination 4 Insurance Requirements 5
Alcohol Requirements 5
Parades 6
Traffic Control Plan 7
Site Plan 7
Medical Plan 7
Entertainment and Related Activities 8
Food Concession/ Vendors 8
City Maintenance Crew Assistance 8
Sanitation, Recycling, and Portable Restrooms 9
Special Event Permit Procedures 10
Special Event Permit Application 12
City Park Special Event Application Form 18
Hold Harmless Agreement 20
Santa Barbara County Sheriffs Department Service Agreement 21 Special Events Guide — Stormwater Best Management Practices 22 56 City of Solvang
Special Event Guidelines

SOLVANG
Introduction
Solvang is a city that celebrates special events. From internationally renowned events to community - based festivals, parades and shows, the City of Solvang is proud to host many events each year. Our goal is to enhance the vitality, quality of life, and economic prosperity of Solvang for its residents and tourists by supporting special events. Thank you for choosing Solvang for your event location! Event Definitions
Special Events are defined as any activity seeking to solicit public attendance for an event on city property, or any event that requires the use of City services.

Large Events — Large events include street closures and/ or events with 250+ anticipated attendees.

Small Events — These events do not require street closures and anticipate fewer than 250 attendees.

Please note that the City also allows reservations to members of the public at city owned parks and facilities for private events such as birthday parties. Generally, these events do not require special event permits. To make park reservations, please call 805- 688- 7529 or visit the Parks and Recreation division at 411 Second St.

An event held on private property, if allowable by the Municipal Code, may require a land use permit. Please check with the Planning Division. Planning Can be reached at 805- 688- 5575, in person at 411 Second St, or by email at Planning. dept@CityofSolvang. com.

Application and Timeline Requirements
We encourage as much advanced notice as possible in order to properly process your application.

Applications submitted without adequate notice may incur additional fees. Some events, although small in participation, may require additional notification time due to the complexity of the event ( i.e., multiple street closures, complicated set- upprocedures, additional permitting requirements).

Application timelines are measured from the day the special event application is submitted. Permit applications may be submitted as early as one year before your event. Permit applications must be received by the City of Solvang no later than:
120 days prior to event — "Large events" requiring street closures and/ or events with 250+ anticipated attendees.
60 days prior to event — "Small events" not requiring street closures and with fewer than 250 anticipated attendees.

Denial of a Special Event Permit
Denial of a Special Event Permit will be automatic if any of the following apply:

Applicant cannot supply the required Certificate of Liability Insurance.

Proposed event directly conflicts with an event that has already been permitted.

Payment for Fees are not provided in timeline required.

Proposed event is not permitted by law or regulation.

Proposed event will imperil public health or safety.

City Council denies the use of the public right- of- way. 57 Special Event Application Supplements and Coordination It is important to provide all required information and documentation in a timely and complete manner throughout the permit review process. Please keep in mind that there may be additional information you will be required to submit to receive a special event permit, including some examples, which are explained in greater detail below:

Insurance and Endorsement Certificate, and Hold Harmless Agreement ( Required for all events) Alcohol Beverage Control ( ABC) License ( if applicable) Highway 246 / Mission Drive Encroachment Permit (if applicable) Vendor List ( if applicable)
Medical Plan ( if applicable)
Please be aware that in some cases you may have to contact federal, state, or county agencies in addition to the City of Solvang for permits related to your Special Event. These might include, but are not limited to:

California Department of Transportation ( Caltrans)
Santa Barbara County Public Health Department
Alcohol Beverage Control (ABC)
Santa Barbara County Fire Department
For example, use of Mission Dr/ Highway 246 is operated by Caltrans. In order to use any portion of Mission Dr/ Highway 246, you will need to obtain a Caltrans Encroachment Permit directly from Caltrans. The Special Events team representative will advise and assist with coordination with other agencies as needed.

INSURANCE REQUIREMENTS AND SPECIFICATIONS
All Special Events must provide Insurance Requirements as follows:

Insurance coverage must be maintained for the duration of the event including setup and dismantle dates.

Business Licenses and insurance for event coordinators and vendors is required. Additionally, they will be required to complete and sign the Hold Harmless Agreement.

General Liability Insurance. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/ umbrella liability policies.

Commercial General Liability insurance with coverage at least as broad as in an amount not less than $ 1, 000,00 per occurrence, $2, 000,00 general aggregate, for bodily injury, personal injury, and property damage. Any endorsement restricting standard ISO " insured contract" language will not be accepted.

Duration of coverage. APPLICANT shall procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property, which may arise from APPLICANT' suse or occupancy of any Public property and adjoining property.

The City reserves the right to require additional lines of insurance, such as:

1. Liquor liability insurance. APPLICANT shall maintain full liquor liability insurance coverage in an amount not less than $ 1, 000,00 per occurrence, $ 2, 000,00 general aggregate. 58 2. Automobile liability insurance. APPLICANT shall maintain automobile insurance covering bodily injury and property damage for all activities of the APPLICANT arising out of or in connection with the evant, including coverage for any owned, hired, non -owned, or rented vehicles, in an amount not less than $ 1, 000,00 combined single limit for each accident.

3. Workers' compensation insurance. APPLICANT shall maintain workers' compensation insurance ( statutory limits) and employer' sliability insurance ( with limits of at least 1, 000,0). APPLICANT shall submit to the City along with the certificate of insurance, a waiver of subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers.

4. 3rd Party. If APPLICANT contracts with a third - party service provider (e.g., caterer), APPLICANT will require the service provider to procure and maintain at its sole cost and expense comprehensive general liability insurance in an amount not less than $ 1, 000,00 per occurrence, $2, 000,00 general aggregate, and if applicable, liquor liability coverage in an amount not less than $ 1, 000,00 per occurrence, $ 2, 000,00 general aggregate, or other lines of coverage the City requires. Both CITY and APPLICANT shall be endorsed as additional insureds.

Other provisions or requirements
CITY reserves the right to apply this provision to other lines of required insurance coverage, e. g., professional liability, sexual abuse and molestation policies.

Primary/ non- contributing. Coverage provided by APPLICANT shall be primary, and any insurance or self- insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance policies shall include or be endorsed to contain a provision that such coverage shall also apply on a primary and non- contributory basis for the benefit of CITY before CITY' s own insurance or self- insurance shall be called upon to protect it as a named insured.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow APPLICANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. APPLICANT hereby waives its own right of recovery against CITY and shall require similar written express waivers and insurance clauses from each of its vendors.

Notice of cancellation. APPLICANT agrees to oblige its insurance agent or broker and insurers to provide CITY with a thirty ( 30) day notice of cancellation ( except for nonpayment for which a ten ( 10) day notice is required) or nonrenewal of coverage for each required coverage.

APPLICANT agrees to oblige its insurance agent or broker and insurers to provide CITY with a thirty
30) day notice of any change of coverage or limits.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders' Rating of A - or higher) and Financial Size Category Class VII ( or larger) in accordance with the latest edition of Best' sKey Rating Guide, unless otherwise approved by CITY.

Enforcement of agreement provisions ( non estoppel). APPLICANT acknowledges and agrees that any actual or alleged failure on the part of CITY to inform APPLICANT of non- compliance with any requirement imposes no additional obligations on CITY nor does it waive any rights hereunder. 59 Requirements not limiting. Requirements of specific coverage features, or limits contained in this section, are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all- inclusive, or to the exclusion of other coverage, or a waiver of any type. If the APPLICANT maintains higher limits than the minimums shown above, CITY requires and shall be entitled to coverage for the higher limits maintained by APPLICANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to CITY.

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.

CITY' sright to revise specifications. CITY reserves the right at any time during the term of the AGREEMENT to change the amounts and types of insurance required by giving the APPLICANT at least thirty (30) days advance written notice of such change. However, CITY reserves the right to give less than thirty ( 30) days notice if CITY first becomes aware of an issue and needs to change the amounts and types of insurance within thirty (30) days of the scheduled event.

Timely notice of claims. APPLICANT shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from APPLICANT' suse or occupancy of the FACILITY and adjoining property, and that involve, or may involve, coverage under any of the required liability policies.

Alcohol Requirements
If you plan to sell or distribute alcoholic beverages at your event, you will be required to:

Obtain a Special Daily License from the Alcohol Beverage Control ( ABC). For information and licensing procedures, please visit www. abc. ca. gov/ forms.

Provide fencing for your conditioned area and check identification of all persons entering such areas or provide a suitable alternative approved by local law enforcement and the City.

Indicate the designated conditioned area( s) on your site plan and include the dimensions of area( s) and mark the entrances and exits.

Each Server shall be required to have a valid certified Responsible Beverage Service ( RBS) certification.
60 Parades
The City has pre -approved routes you will be required to use and are listed on the application.

Please be sure to indicate which route you prefer on your application and include a City street map with choice of route marked. If you desire a route other than the City pre -approved routes, you may submit a request on your application along with a City map with the alternative route marked clearly. The Public Works Director and the Sheriff' sDepartment must approve any such request. If approved, the applicant must work with City staff and the Sheriff' sDepartment to implement a safety plan. Special safety provisions may be required, and all costs associated with the implementation are the sole responsibility of the applicant.

Routes that use Mission Dr/ Highway 246 require a Caltrans Encroachment Permit. Contact Caltrans directly at (805) 549- 3134. The applicant is responsible for obtaining this permit, NOT the City. You will be required to submit a copy of your Caltrans Permit before a City permit will be issued. Please contact Caltrans well in advance.

Routes that include Old Mission Santa Inez must be scheduled and approved by their facility manager who can be reached at ( 805) 688- 415. Proof of approval must be provided to the City.

The Sheriff' s Department will provide a cost estimate for services to monitor the parade route.

Such costs will be paid directly to the City on behalf of the Sheriff' sDepartment. Sheriff fees must be paid no later than 30 days prior to your parade.

Applicant MUST provide volunteers to assist with traffic control and undertake activities related to traffic control. The deputy assigned will let you know the number of volunteers required. A list of the names of volunteers along with their contact details and assigned shifts is mandatory and must be submitted to the assigned deputy in charge of the parade route and the CITY at a minimum of a week prior to your parade. If the assigned deputy is not supplied with the required volunteer list and contact information and/ or failure of volunteers report to assigned post prior to parade may result in cancellation of the parade and/ or shortening of parade route. Parades that start late or run over time will incur additional costs. If you are having difficulty getting volunteers, please contact your Special Events team representative.

Applicant is responsible for securing a street sweeper to clean route immediately following the conclusion of the parade when animals are included as part of the parade or is deemed necessary by the City.

Traffic Control Plan
Any traffic control must be in accordance with the California Manual on Uniform Traffic Control Devices and must also highlight traffic monitors and police personnel where appropriate. Applicants will be responsible to furnish and place all traffic control devices per the approved traffic control plan. Should your event require the closure or restriction of any public right- of- way, such as a sidewalk, alley, or street, you must submit a traffic control plan. You will be required to inform the public, including businesses and residences, within 1, 000 feet of any closure or restriction at least two weeks prior to the event.

Site Plan
To ensure prompt review of your event application, please provide a site/ route plan that is clear and legible. Attach the detailed site/ route plan depicting the proposed layout for the event. Route maps are very important for most events and may be required as part of your traffic control plan.

Details to include parking, portable toilets, trash cans, recycling containers, dumpsters, equipment, alcoholic and non- alcoholic concession areas, food concession areas, barbecues, 61 generators, tables and chairs, seating, canopies, stages, signs, banners, sound amplification equipment, and tents.

Large tents and/ or canopies may require a Fire Department Inspection. Please contact the Santa Barbara County Fire Department at ( 805) 681- 5500 or www. sbcfire. comfor application and payment information. We require a copy of such application and payment receipt prior to your event if a tent will be used.

If your event is held on a City or private Street, or in a City or private parking lot, there must be an unobstructed 20 -foot -wide emergency vehicle access lane. Entrances to streets, alleys, and parking lots must not be permanently blocked at any time. Movable barricades should be used to block streets, alleys, and parking lot entrances.

Information must be included in regard to use of inflatable devices, animals, placement materials for show vehicles, lighting, signs/ banners (must be preapproved by city), or other pertinent information that will better assist us in reviewing the activities and components of your event.

Medical Plan
Any event with more than 500 attendees or a street closure must provide a medical plan.

Medical plans must include a detailed plan of first aid and medical stations. Please include the locations of such stations and the hours that they will be available, as well as the setup and dismantle times.

Please list the types of services that will be provided at each station and the Staff names, contact numbers, and designated Shifts, and other pertinent information.

Entertainment and Related Activities
Applicant must ensure that all event related activities comply with local laws. Banners, flags, signs and related devices are regulated by local ordinance. These must be included on your site map and must be pre -approved prior to your event. Photos/ arwork of all requested devices should be submitted.

Please note feather banners are prohibited in the City of Solvang and the City has adopted a noise ordinance that does not allow amplified music after 10: OOpm. Sign regulations, banner applications, and local ordinances can be obtained at www. cityofsolvang. com, or by emailing CityHall@CityofSolvang. com.

Food Concession and Vendors
If your special event includes vendors selling food, beverages, merchandise, or services such as entertainment, etc; each vendor must pay a vendor fee of $ 50 payable to the City of Solvang and provide required insurance and sign the hold harmless agreement. Payment for all vendors must be received prior to permit being issued. Event is responsible for collecting fees and then submitting one payment for all vendors participating. A list of all vendors must be submitted including those registered as 501( c)( 3) non- profit organizations. Non- profit 501( c)( 3) groups are exempt from the 50 vendor fee so long as their non- profit number and/ ortax exemption identification is provided on a vendor list form. If your vendor has a current valid City of Solvang Business Certificate at the time of your application submission for a special event permit, then they will NOT be charged a $ 50 vendor fee.

Vendor must provide their Business Certificate number on vendor list form as well as date issued. A vendor list template form will be provided to you per your request.

All food concession vendors must obtain a valid County of Santa Barbara TFF Health Permit.

Please request this application process from your Special Events Team representative. Proof of payment of fees and final Health Permits are required before your final permit will be issued.

City Maintenance Crew Assistance
62 4The assistance of the City maintenance crew may be permitted, at the City' s discretion. If Maintenance is deemed a requirement during your set- up, event hours, or break down, you will be charged at a rate of $97 per hour per person with a minimum of a two- hur charge per person. For assistance needed at events held outside of normal business hours, a four- hour staff time minimum shall apply. You will receive an estimate of the anticipated costs for staff time prior to issuance of your permit. All fees must be paid prior to your event. Any additional fees post event will be sent via email and will be required payment net 30. If payments are not received net 30 then the fees will be subject to finance charges and interest rates. Any credits shall be processed post event and mailed to the address given on the application.

Sanitation, Recycling, and Portable Restrooms
Event is responsible for proper disposal of waste throughout the term of the special event and immediately upon conclusion of event, including City containers that are present. The footprint approved for the event must be returned to its pre -event condition. You must have equal numbers of trash cans, recycle containers, and compost stations and events with more than 1, 000 anticipated attendees must provide a plan for recycling and waste reduction.

Guidelines state that one (1) chemical toilet must be provided for every 100 people above the first 100 attendees, and that ten percent ( 10%) of these must be ADA Accessible. You are required to provide portable restroom facilities at your event, unless you can substantiate the sufficient availability of both ADA accessible and non -accessible facilities in the immediate area of the event site, which will be available to the public during your event.

Should you fail to perform adequate cleanup or damage occurs to City of Solvang property and/ or facilities due to your event, you will be billed at full cost recovery rate plus overhead for cleanup and repair. For services, please contact Waste Management at ( 805) 538- 9830. 63 CITY OF SOLVANG

SPECIAL EVENT GUIDELINES

SOLVANG

1. Applicant will fill out the official special events application form, found on page 12.

Events seeking to utilize a City park ( Solvang Park, Hans Christian Andersen Park, Sunny Fields Park) should also complete the Parks special event application form, found on page 18. All forms along with applicable layouts/ maps should be delivered to City Hall ( 1644 Oak St.) or emailed to Cityhall@cityofsolvang. com and events( asolvanqusa. com.

Completed event applications must be received by the City of Solvang no later than:
120 days prior to the event — "Large" events requiring a traffic closure and/ or events with 250+ anticipated attendees.
60 days prior to the event — "Small" events that do not require a traffic closure and have fewer than 250 anticipated attendees.

2. "Large" events that are new to Solvang are required to be presented to the Tourism Advisory Committee ( TAC) for their approval. The event applicant is expected to attend the TAC meeting to provide any relevant information as requested. Currently, the TAC meets on the first Thursday of each month at 3:0 p. m.

Please note that other events may be recommended to be presented to the TAC depending on the scope and impact of the event to the community.

3. Events with significant impact to the community may be recommended for presentation to the City Council for their approval at their next available meeting. Currently, the City Council meets on the 2nd and 4th Monday of each month at 6: 30 p. m.

4. Applicant must complete remaining steps within time requirements to receive the special event permit. Refer to the guidelines beginning on page 3 for more detailed information.

Provide certificate of liability insurance ( required for all events).

Plans vary by the event and may include, but are not limited to the following:
o Site plan
o Alcohol Beverage Control ( ABC) License.
o Traffic plans, including Caltrans authorization for use of Hwy 246. o Fire Department authorization
o Medical plans for all events with 1, 000+ attendees
Complete payment, based on adopted fee schedule. You can submit the application fee via check or request a payment link to pay via credit card. All checks should be made out to the City of Solvang.
o Small Events — $135*
o Large Events — Actual costs*
Large events have a base rate of $ 135 but are likely to incur additional expenses.

Large events are required to confer with the Santa Barbara County Sheriff' s Office and pay for the required Deputy coverage. This form can be found in the application on page

21. 64
Additionally, maintenance employees performing event setup, break down or other applicable labor will be billed at rate of $97 per hour per person, in increments no lower than two hours. For events taking place after normal business hours, a minimum of four hours will be applied. Maintenance staff will be available at the City' s discretion.

Estimates of actual costs will be provided by City staff prior to the issuance of the special event permit.

5. Once requirements have been satisfied, the permit will be signed by the event applicant, followed by the City Manager or his/er designee. This should be completed/ authorized at least 30 days prior to the event.

6. Two weeks prior to the event, applicable event staff and City staff conduct a final coordination meeting.

7. Proper noticing for the event shall be completed, as indicated in the Special Events Guidelines, in the Traffic Control guide on page 7.

Required mailing notices are sent at least two weeks prior to the event.

Street closure signs and no parking signs are placed 48 hours prior to the event.

8. On day of event, appointed on -call contact should be notified immediately in the event of any accidents, damages, or other emergencies.

9. For events hoping to return on annual basis, City staff / event staff shall conduct a post event meeting within one month to discuss any issues that may have come up during the event. City staff will also make a recommendation for the event to be permitted to return in the future. 65 The /), &, Ca nm( fA„ te„ a,
City of Solvang
Special Event Application
Applicant Information:

Legal Name Host Organization:

Name of Event:

Date( s) of Event:

Primary Contact:

Primary Contact Phone Number:

Primary Contact Email Address:

Mailing address:

Event Website ( if applicable):

Type of Event:

Auto Show
Bike Ride Walk / Run
Athletic Event — Other Please Describe:

Festival / Carnival
Concert / Performance
Parade
Other — Please Describe:

Event Setup & Dismantle:

Setup Dates: Setup Times:

Event Dates: Event Times:

Dismantle Dates: Dismantle Times:

Anticipated Attendance:
66 City Street Names and/ or Public Areas Requested for Event:

Please be specific. A City street map highlighting requested areas is mandatory. If you would like, please submit a separate list with dates and times of use for each area/ street/ parking lot, etc.

Food Concession and Vendors:

A list of all vendors must be provided to the City. Each vendor must pay a $ 50 vendor fee unless they are a 501( c3) non- profit organization or have a current valid City of Solvang Business Certificate by the date of your special event application submittal. Non- profit ID numbers/ registration # or a copy of tax exemption must be provided on the vendor list for non- profit organizations.

Vendors with a City of Solvang Business Certificate must provide certificate number and most current date issued. Vendors must provide required insurance, and also sign the Hold Harmless agreement prior to the event.

Number of expected vendors:

Will food be prepared at this event?
Will Liquid Propane Gas ( LPG), Open Flame, or Generators be used? If yes, then Fire Department sign -off required_
67 If you plan to serve/ell food or vendors that will so, you and each vendor are required to obtain a health permit from Santa Barbara County Public Health Department at ( 805) 681) 4900, or www. sbcphd. orq/ ehs. Please note: you will need to provide the City of Solvang a copy of your SB Health Permit.

Alcohol or Beverage Service:

Will you be serving or selling non- alcoholic beverages at your event? Will you be serving or selling alcoholic beverages at your event? If you plan to serve/ell beverages ( alcoholic and non- alcoholic), you are required to obtain a health permit from Santa Barbara County Public Health Department at (805) 681) 4900, or www. sbcphd. org/ ehs. Please note: you will need to provide the City of Solvang with a copy ofyour SB Health Permit.

Effective July 1, 2022, any organization applying for a temporary or daily license is required to have a valid certified Responsible Beverage Service ( RBS) server onsite at all times during the event within the area where the service of alcoholic beverages is occurring. One RBS Server for every service station within the area.

For additional information, please visit https:// www. abc. ca. gov/ education/ rbs/ You will be required to contact the Alcohol Beverage Control (ABC) and obtain necessary Special Daily License in order to serve/ell alcohol. Proof of such license must be provided to the City of Solvang. You must include on your site map all conditioned area( s) including entrances and exits as required by ABC. For information and licensing procedures, please visitwww. abc. ca. gov/ forms.

Parades:

Does your event include a parade? Yes
n
No
n
If yes, which route will you be using?
Route A: Begins at Veteran' sMemorial Building. West on Mission Drive, Left on Fourth Place, Left on Copenhagen Drive, Left on Alisal Road, Right on Mission Drive, returning to Veteran' sMemorial Building Parking Lot.
15 volunteers required — Caltrans Encroachment Permit WILL be required.

Route B: Begins on Alisal Mesa Road. North on Alisal Road, Left on Copenhagen Drive, Left on Second Street, Left on Oak Street, Right on Alisal Road, returning to Alisal Mesa Road.
10 volunteers required.

Alternate Route C: Requires submittal of Parade Route and professionally prepared Traffic Control Plan for review and approval by the City. 68 Sheriff Services and Traffic Control Plans & Services:

Your Street Closure Permit will require a contract with the Sheriff Department and/ or a Traffic Control Company for traffic control service plans and proper placement of traffic control devices ( TCD' s). All events will need to submit a Traffic Control Plan. Please give details below on your plans for traffic control. You may submit in a separate file if necessary.

Site Plan:

To ensure your application is reviewed promptly, please attach your site/ route plan depicting the proposed layout for your event. Please refer to the Special Event Permit Guidelines for details of what should be included in your site/ route plan.

Entertainment and Related Activities:

Are there any entertainment features, musical or otherwise, included in your event? Yes No
Will there be amplified music or announcements at any time during your event? Yes n No
If you answered yes to any of the above, please explain below and include locations.

Portable Restrooms:

Do you plan to provide restroom facilities? Please note, it may be required.

Yes n No
If yes, how many are you providing for your event? Regular:

Please list locations of restrooms and which type on your site map.

ADA:

Sanitation and Recycling:

Please list the amount of each type of unit you will be providing. Please note, it may be a 69 requirement.

Trash Cans: Recycling Containers: Compost Stations:

Dumpsters:

Please make sure to list locations of units and which type on your site map.

Medical Plan:

If required for your event ( a requirement for any event with more than 1, 000 attendees), please provide a separate document describing the locations of first aid stations along with thetype of aid offered and who is contracted to provide medical services.

Open Fire
Use of open fire, propane, grills, entertainment of any sort will require Fire Department approval Tents
Large tents and canopies require Fire Department approval Additional Contacts:

Contact Name & Title: Contact Email:

Contact Name & Title: Contact Email:
70 Affidavit of Applicant
I certify that the information contained in the forgoing application is true and correct to the best of my knowledge and that I have read, understood and agree to abide by the guidelines governing the proposed Special Event under the City of Solvang Municipal Code. I understand that this application is made subject to the rules and regulations established by theCity Council and/ orthe City Manager or the Manager' sdesignee. I agree to comply with all other requirements of the City, County, State, Federal, and any other applicable entity, which may pertain to the use of the Event venue and the conduct of the Event. I agree to abide by these rules, and further certify that I, on behalf of the Host Organization, am also authorized to commit that organization, and therefore agree to be financially responsible for any costs and fees that may be incurred by or on behalf of the Event to the City of Solvang and contracted services.

I agree to all conditions stated in the Special Event Guidelines and Application:

Legal Name of Organization:

Signature:

Title:

Print Name:

Phone: Email:
71 CITY OF SOLVANG

APPLICATION FOR SPECIAL EVENT CITY PARK USAGE
SO LVA N G Solvang Parks & Recreation/ 411 Second Street, Solvang CA 93463 / ( 805) 688- 7529 The City of Solvang owns and maintains three parks: Solvang Park ( 1630 Mission Dr), Hans Christian Andersen Park ( 633 Chalk Hill Dr), and Sunny Fields Park ( Alamo Pintado Rd). These parks are typically reserved for private parties. However, an organization wishing to rent the park for " special event" usage must complete this form. Completed forms should be sent to CityHall© CityofSolvang. com.

Application
Applicant Name
Legal Organization Name
Preferred Phone #
Email Address
Mailing Address
Driver' s License #
Event Date( s)
Event Type & Website
Event Start Time / Including set- up: ( Park Opens at 8: 00 am) Event End Time / Including clean- up:

Please specify which area( s) you would like to reserve:

HCA: O Area A 0 Area B 0 Area C Q Area D Q Skate Park Q Atterdag Bowl Q Lawn Areas Q Parking Lot Q Volleyball Courts Q Pickleball / Tennis Courts Solvang Park: O Gazebo / Bandstand * Q Lawn Area *
Sunny Fields: Q Area A O Area B Q Parking Lot Q Lawn Area Q Volleyball Courts The use/ser of the Solvang Park gazebo and/ orlawn areas for a private/ public function is fully aware that it is located in the public park and comes in " as is" condition and will not be cordoned off from the public stating that the gazebo will be in use for a private/ public function. Any user of the gazebo ( applicants) understands they must coexist with any and all members of the public that may be present at the gazebo during the hour( s) reserved by the applicant.

Special Event Guidelines
Please remember and respect the fact that this is a public park. The Solvang City Code ( available at www. qcode. us/ codes/ slvang/) is in full effect. Please note the following ordinances concerning City Parks:
11-2- 8: Special Events:

1. Events shall not occupy more than seventy five percent ( 75%) of the park and shall not occupy the picnic benches, to concurrently avail the facility to nonevent participants.

2. Events shall be limited to 501( c)( 3) nonprofit sponsors. ( Ord. 99- 200,- 8- 1999) 8-1-2: Park Rules and Regulations:
72 Within the boundary lines of any of the parks defined in section 8-1-of this chapter, it is unlawful for any person or persons to do any of the following acts:

M. Loudspeakers, etc.: To use or permit to be used any public address system, loudspeaker, bullhorn or other power amplified sound equipment without first obtaining a written permit from the city manager.

N. Handbills: To distribute any handbills or circulars or to post, place or erect any bills, notice, paper or advertising device or matter of any kind.

O. Merchandise and Commercial Enterprises:

1. To sell or offer for sale or to rent or lease any merchandise, article, or thing, whatsoever, unless granted a valid written permit by the city manager.

2. To practice, carry on, conduct or solicit for any trade, occupation, business or profession of whatsoever kind or character without written permission of the city manager.

3. To sell, expose for sale or offer to sell in or along any public street, lane or thoroughfare adjoining or approaching any public park in the city within two hundred feet (200') of such park any goods wares, or merchandise of any kind whatsoever. This does not apply to businesses on private property that are adjacent to parks.

R. Alcohol Consumption: No person shall consume an alcoholic beverage, or have in his or her possession any receptacle containing any alcoholic beverage which has been opened, or a seal broken or the contents of which have been partially removed in any public area or park except:

3. In Hans Christian Andersen where written permission for a special event has been obtained from the city manager at least twenty- four (24) hours prior to such act. Individuals, businesses, or organizations engaging in the sale of alcoholic beverages shall be properly licensed by the state department of alcohol beverage control. (Ord. 09- 286, 5- 26- 2009)
Rules and Regulations
VIOLATION OF ANY RULES AND/ OR REGULATIONS MAY RESULT IN A MINIMUM $ 25 PER INFRACTION FEE.

Please observe the following rules as well as those posted throughout the Park

1. Vehicles must be parked in designated parking lot or street parking spaces.

2. Equipment, event supplies, and decoration brought by the user must be removed at the end of each scheduled reservation. Clean- upshould be finished by event end time on permit.

3. Personal items used, left, or lost will not be the responsibility of the City.

4. Stakes of any type are NOT allowed in dirt or turf areas.

5. Damage of any kind that occurs to the facilities used is the responsibility of the renter/ group.

Renter/ group will be required to pay for the damaged property and/ orreplace the damaged property as determined by the City.

6. Cancellation of an event or change in use times must be submitted in writing a minimum of ( 5) five working days prior to the start of the event. If weather cancels the event, a full refund will be issued.

Notification may be e -mailed to CitvHaIk citvofsolvanq. com If the City is NOT notified, the user will be billed for this use time.

7. Animals must be kept on leash at all times. S. M. C. 8-1. 2 E 2, 6-1-1 B. Please clean up after your pet.

8. Pony rides are prohibited.

9. Closing times are enforced. All users must be out of the parks by closing time. S. M. C. 8-1-2-G

10. Littering is prohibited. All decorations, including but not limited to, tape, balloons, ribbons, streamers, confetti, and other decorating materials must be removed from the picnic area and disposed of properly. Failure to do so will result in an infraction fee. Use the trash containers provided. Recycling is encouraged. S. M. C. 8-1-2Al

11. Sale of food, drinks, or alcoholic beverages is prohibited without prior written permission from the City.

12. S. M. C.

Trash receptacles
8-1-2-0...3
will be emptied by staff, but the user shall remove any overflow trash.

13. No amplified sound ( including radios, phones, IPods, with or without speakers, etc.) is allowed in City parks. S. M. C. 8-1-2 M
Sponsor shall indemnify, defend, and hold harmless the City, its officers, employees, and agents from any and all losses, costs, expenses, claims, liabilities, actions, or damages, including liabilities for 73 injuries to any person or damage to property arising at any time during and/ or arising out of or in any way connected to the Sponsor' s use of Public Property, unless solely caused by the gross negligence of willful misconduct of the City, its officers, employees, or agents.

I have read and understand the fees, rules and regulations. I understand that failure to comply with these rules and regulations may lead to partial or total loss of my security/ damage deposit, and may lead to a citation under Solvang Municipal Code Chapter (S. M. C.) 12. 24.

Legal Name of Organization:

Signature:

Title:

Print Name:

Phone: Email:
74 HOLD HARMLESS AGREEMENT
The undersigned ( hereinafter the " applicant") understands and agrees to be personally responsible for any damage sustained to the grounds, buildings, fixtures, or equipment, as a result of his/er/ its use of City property.

The applicant certifies that he/ she/ ithas read and agrees to the City' sSpecial Event procedures, and acknowledges and understands that additional conditions and fees may be imposed or required at the time of the permit issuance.

The applicant shall hold harmless, defend and indemnify the City of Solvang, its elected officials, officers, employees, agents and volunteers from any damages that may arise as a result of the conduct of the special event for which the permit is being sought. The applicant agrees to defend, protect, indemnify and hold the City of Solvang, its elected officials, officers, employees, agents and volunteers free and harmless from against any and all claims, damages, expenses, loss or liability of any kind or nature whatsoever arising out of or allegedly arising out of, related to, or resulting from the conduct of the permitted event or activity. The applicant shall, at applicant' sown cost, risk and expense, defend any and all claims and all legal actions that may be commenced or filed against the City of Solvang its elected officials, officers, employees, agents and volunteers, and the applicant shall pay any settlement entered into and shall satisfy any judgment that may be rendered against the City of Solvang, its elected officials, officers, employees, agents and volunteers resulting from the permitted event or activity.

I hereby submit this Application for a Special Event Permit for the event described in this application.

Applicant Name Applicant Signature Date
City Manager and/ or designee - Name Date
City Manager and/ or designee - Signature
Approve Event Deny Event
Comments:

Stipulations for issuing permit:

Reason for denial:
75 SANTA BARBARA COUNTY SHERIFF' SDEPARTMENT

SERVICE AGREEMENT
The below named applicant and/ or organization hereby agrees to have the Santa Barbara County Sheriff' s Department provide Police Security/ Traffic Control on the following date and time, at the following event and location:

NAME OF APPLICANT / CONTACT PHONE

APPLICANT ADDRESS

ORGANIZATION

TYPE OF EVENT/ SERVICE NEEDED

ESTIMATED ATTENDANCE
PLACE

DAY / DATE

TIME OF SERVICE FROM TO

ALCOHOL SERVED/ SOLD NO YES FROM TO
I further understand that this is not an agreement to rent any buildings or equipment, but only an agreement to provide a police service. Deputies will start one- half hour prior to serving alcohol and/ or before the start of the event, and finish one- half hour after the conclusion of the event, except when additional time is required by activities related to the event. Payment for police service fees must be received by the City of Solvang, 30 days prior to the event, or upon reservation if made less than 30 days before the event. Police services cannot be guaranteed, if received less than 5 days prior to the event.

Note: A minimum of two (2) deputies is required for an event, each working a minimum of three ( 3) hours, for a total of (6) hours minimum.

I understand that I must contact the City of Solvang and meet all of their terms and conditions for this event.

NOTE: A copy of this agreement must be returned to the City for billing purposes. The Sheriff' s Department requires a 48 hours notice of cancellation to avoid fees.

I certify that I have read, understand, and agree to this contract agreement, and the answers given herein are true and complete to the best of my knowledge.

APPLICANT SIGNATURE DATE

SHERIFF' SDEPARTMENT
Number of Deputies x HOURS per Deputy = TOTAL HOURS
TOTAL HOURS OF DEPUTIES HRS x ($ 96/ HRS) =
Total Security Deposit = $

SIGNATURE TODAY' SDATE

RETURNED TO SOLVANG CITY BY DATE/ TIME
76 BUELLTON

SOLVANG
Special Events
Antifreeze
Food waste
Chalk, paint, charcoal, and clay
Cleaning chemicals
Cooking oil and grease
Dirt and sediment
Grey water and wastewater
Hydraulic/ transmission fluid
Oil, grease, gasoline, and diesel
Pet and livestock waste
Sewage
Soaps and detergents
Trash and litter
Training
Train event staff, volunteers,
and vendors on stormwater
pollution prevention measures
outlined in this guide.

Educate your event staff and
volunteers on the where, what
and why of recycling.

Designate one of your key event
staff or volunteers to monitor
event location for spills.

Spill Prevention and Cleanup
Place a drip pan under a
leaking
vehicle or equipment to capture
leaking fluids.

Keep a spill kit on - site and
available for use.

Clean up spills or drips
immediately.

Use dry methods for cleaning
up spills ( absorbent, sweep)
rather than rinsing down areas.

Use a funnel and/ or spout to
prevent spilling when refueling
equipment.

Notify the city or county issuing
your Special Event Permit if you
have any spill or discharge
during or after your event.

City of Buellton
www. CityofBuellton. com
Public Works
Department
805. 688. 5177
swmp@cityofbuellton. com
0000010 OIL ONLY
City of Carpinteria
www. carpinteria. ca. us
Public Works
Department
805.80. 3415
stormwater@ci. carpinteria. ca. us
Activities at special events can cause pollution. This guide provides pollution prevention practices to event planners organizing special events for the community.

Special Events such as athletic ( bike/ run/ walk), automotive, carnivals, circuses, dog shows/ events, concerts/ performances, and festivals/ parades can generate pollutants caused by improper cleanup and accidental spills that can be picked up by wind or by stormwater runoff and transported to the nearest storm drain inlet and into our waterways. You can help reduce stormwater pollution by implementing BMPs during and after your event.

COOKING OIL AND GREASE
Use a paper towel to wipe food residue off of pots, pans and dishware and dispose of towel into trash container.

Do not pour cooking oil/ grease onto the bare ground or into landscape areas, trash bins, street gutters, storm drains or sanitary sewer.

To dispose properly, pour used cooking oil/ grease into a sealable container like a can or jar ( remove as much food residue as possible) place it in the trash or take it to your local hazardous waste collection center or a scheduled collection event.

FOOD
Don' tplace mobile food facilities ( catering trucks and trailers, ice cream trucks, produce trucks, coffee/ push carts) or food stands near storm drains inlets.

Discharge wastewater from food preparation, and cleaning procedures into a sink, toilet or other drain connected to sanitary sewer. Only un-sed water and clean ice may go to bare ground or to a landscape area.

Contact your local food bank, homeless/ houing shelter, senior center or non- profit charity/ organization and offer to donate excess edible, unused and/ or non- perishable food products. All parts of hot food must be kept above 135° F and cold food below 41° F, before and during transportation.

MINIMIZING TOXIC CHEMICAL USE AND WASTE
Use the least toxic cleaning products available.

Ensure your color run uses city approved dust and color ingredients. Use dry methods for cleaning up color dust ( sweep or shop vacuum) or schedule a street sweeper. Do not rinse surfaces with water unless it can be re -captured and disposed of appropriately.

Did you know? If you use plant -based products such as utensils and plates, they are compostable and biodegradable.

GREY WATER AND WASTEWATER
Do not dump wastewater from washing dishes onto the bare ground, landscape areas or into a storm drain.

Do not discharge grey water ( shower or wash water) to the bare ground, landscape areas, street or storm drain.

When using a wastewater tank/ bladder, use a funnel to prevent water from spilling onto the ground.

Dispose of gray water or wastewater to portable toilets on - site or take to off -site utility sink or toilet connected to sanitary sewer.

City of Goleta
www. CityofGoleta. org
Public Works
Department
805. 961. 7500
City of Lompoc
www. CityofLompoc. com
Economic and Community
Development Department
805.75. 8275
City of Santa Maria
www. cityotsantamaria. org
Department
of Utilities
805- 925- 0951, ext. 7270
stormwater@cityofgoleta. org stormwater@ci. lompoc. ca. us regulatorycompliance@cityofsantamaria. org City of Santa Barbara
www. sbcreeks. com
Creeks
Division
805.97. 2658
creeks@santabarbaraca. gov
i
City of Solvang Santa Barbara County
www. CityofSolvang. com www. SBProjectCleanWater. org
Public Works Project
Department Clean Water
805. 688. 5575 805. 568. 3440
stormwater@cityofsolvang. com cleanwater@c7 et

BUELLTON

SOLVANG
The Cities of Buellton, Carpinteria,
Goleta, Lompoc, Santa Barbara,
Santa Maria, and Solvang, and the
County of Santa Barbara have an
extensive Stormwater Management
Program, with an even greater
selection of information and useful
tools to help you plan your event.

Take advantage of the
following FREE services:

Download or print BMP materials
When receiving your Special
Event Permit, check if a:

Post -event " walkthrough"
inspection or meeting is required
Litter - Free Permit is required
Trash dumpster is required
Large events or venues with over
2, 000 persons may be required
to implement a Waste Reduction,
Reuse and Recycling Plan ( AB
2176)
Be sure to always:

Understand on - site drainage.

Identify all on - site storm drain
inlets and catch basins or nearest
off -site drain location.

Protect all on - site storm drain
inlets with a fiber roll, filter fabric
or gravel bag berm at each
on - site catch basin or nearest
off -site drain location for the
duration of the event.

Remove all storm drain inlet
protection at the end of the event.

Don' tinstall storm drain inlet
protection that may cause
flooding if rain is forecasted
during your event.

PORTABLE TOILETS
Locate portable toilets a minimum of 50 feet away from drainage facilities concrete swales, etc.) and high -traffic areas, and never near a storm drain.

Ensure portable toilets have secondary containment to prevent discharge of waste.

PET AND LIVESTOCK WASTE
Place soiled bedding and manure in sturdy insect and leak - proof waste container.

Toss pet waste in the trash, even when you use biodegradable bags.

Contact your city and ask about their Close the Poop Loop campaign and any promotional text or graphics that you can use in your media campaign to help spread the word.

Visit Close the Poop Loop at http:// closethepooploop. com for more details and find out the truth about dog poop.

GREEN OR WOOD WASTE
Donate plants, centerpieces, and other decorative to a local homeless/ houing shelter, senior center or non- profit charity/ organization.

Reuse, donate and/ or return pallets to vendors.

Donate old stage props to local schools or a local theater group.

Take unusable and untreated wood products or pallets to a designated county facility for recycling. Visit Less is More at http:// lessismore. orc for the location of wood recycling facilities.

RECYCLING
Place all recyclable containers in visible locations next to each trash container throughout the event location.

Flatten all boxes and set aside for cardboard recycling.

Clearly mark all containers used to collect recyclable materials such as cardboard, beverage containers aluminum, glass, plastic) and paper ( pamphlets, fliers, programs, tickets, receipts, catalogs).

Contact your waste hauler to learn about the commercial recycling ( AB 341) and commercial organics recycling ( AB 1826) or visit Less Is More at http:// lessismore. org for more information.

TRASH AND LITTER
Consider planning a zero - waste event and promoting this effort with event participants. Visit Less is More at for information on how to plan a zero - waste event.

Place all trash containers in visible locations.

Monitor all trash containers during the event and empty regularly to prevent overflow.

Keep the event location free and clear of litter during the event hours and after each day of the event.

Remove all trash and litter or any markings by all activity connected to the event, leaving the event location and public right- of- way clean and free of trash and litter.

Schedule a street sweeper to clean routes and parking areas following the conclusion of a parade or event especially when animals are included as part of a parade or event.

PRESSURE WASHING

MOP BUCKET
Don' t
pressure wash or rinse event or parking lot area unless wash water is collected and discharged to sink, toilet or other drain connected to sanitary sewer or be directed to a landscape or unpaved areas.

Setup a perimeter berm and/ or block storm drain inlets.

Use a shop vacuum to collect wash water and dispose of it appropriately.

Use mop bucket to remove temporary public art ( chalk, paint, charcoal, clay) on sidewalks etc. Try to wash without soaps and solvents when removing event markings etc.

LOhIPOC
City of Buellton City of Carpinteria
www. CityofBuellton. com www. carpinteria. ca. us
City of Goleta
www. CityofGoleta. com
City of Lompoc
www. Cityokompoc. com
City of Santa Maria
www. CityofSantaMaria. com
City of Santa Barbara City of Solvang Santa Barbara County www. sbcreeks. com www. CityofSolvang. com www. SBProj73Water. org

BUELLTON

SOLVANG
Eventos Especiales
Anticongelante
Desperdicio de comida
Tiza, pintura, carbon, y arcilla
Productos quimicos de limpieza
Aceite de cocina y grasa
Tierra ysedimentos
Agua gris y aguas residuales
Fluido hidraulico/ de transmision
Aceita, grasa, gasolina y diesel
Residuos de mascotas y ganado
Aguas residuales
Jabones y detergentes
Basura
Entrenamiento
Entrene el personal del evento,
voluntaries, y
vendedores sobre
las aguas pluviales y medidas de
prevencien de la contaminacion.

Eduque su personal del evento,
voluntario en el donde, que y par
que reciclar.

Designe a alguien de su personal
o voluntaries para monitorear
localidades de derrame.

Prevencion y limpieza
de derrames
Coloque una bandeja de goteo bajo
una fuga de vehfculo o equipo para
capturar fugas deliquido.

Mantenga un kit de derrame en el
sitio y disponible para su use.

Limpie los derrames o goteos
inmediatamente.

Utilice metodos secos para la
limpieza derrames (absorbentes,
barrel-) en lugar de enjuagar areas.

Utilice un embudo y/ o un canalon
para evitar derramas al repostar
equipo.

Avisele a la ciudad o condado
que emite su permiso de Evento
Especial si tiene cualquier derrame
o descarga durante o despues de
su evento.

Ciudad de Buellton
www. CityofBuellton. com
Public Works
Department
805. 688. 5177
swmp@cityofbuellton. com

GRASA DE COCINA
Las actividades durante eventos especiales pueden causar contaminacion. Esta guia proporciona practices de prevencien de la contaminacion para los organizadores de eventos especiales para la comunidad.

Eventos especiales comp atletismo ( bicicleta/ carrera / caminata), automotriz, carnavales, circos, espectaculos/ eventos para perros, conciertos / obras, y festivales / desfiles pueden generar contaminantes causados por la limpieza inadecuada y derrames accidentales que pueden ser recogidos por el viento o por escorrentia de aguas pluviales y se transport() a la entrada de drenaje
pluvial mas cercana y a nuestras vies fluviales. Puede ayudar a reducir la contaminacion de las aguas pluviales mediante la implementacion de BMPs durante y despues de su evento.

ACEITE Y GRASA DE COCINA
Utilice una toalla de papel pars limpiar los residuos de alimentos de las ollas, sartenes, vajillas y deseche la toalla en el recipiente de basura.

No vierta aceite/ grasa de cocina en el suelo o en areas de paisaje, papelera, canalones de calles, drenajes pluviales o alcantarillado sanitario.

Para desechar correctamente, vierta al aceite/ grasa de cocina usado en un contenedor sellable como una lata o frasco ( elimine la mayor cantidad de residuos de alimentos como sea posible) y coloquelo en la basura '— o Ilevelo a su centro local de recoleccien de residuos o a un evento de recoleccien programado.

COMIDA
No coloque instalaciones de comida movil (camiones y remolques de servicios de comida, producir camiones, carros de cafe, carretilla) o puestos de comida cerca de las entradas de drenajes pluviales.

Descargue las aguas residuales de la preparacion de alimentos y los procedimientos de limpieza en un fregadero, inodoro u otro drenaje conectado a la alcantarilla sanitaria. Solo agua limpia y hielo limpio puede it a la tierra o a una zona de paisaje.

Comuniquese con su banco de alimentos local, refugio para personas sin hogar/ vivienda, centro para personas mayores u organizaciones beneficas sin fines de lucre y ofrezcase a donar productos alimenticios comestibles, no utilizados y/ o no perecederos. Todas las partes de alimentos calientes deben mantenerse por encima de 135° F y alimentos fries por debajo de 41° F, antes y durante el transporte.

MINIMIZAR EL USO Y LOS RESIDUOS QUIMICOS TOXICOS
Utilice los productos de limpieza que tienen menos toxicos.

Aseglirese de que su carrera de color utilice ingredientes de polvo y color aprobados por la ciudad. Utilice
metodos secos para limpiar el polvo de color (barra o aspire) o programe una barredora de calles. No enjuague superficies con aguas a menos que pueda volver a capturarse y desecharse adecuadamente. i,Sabia Que? Si utiliza productos basados de planta como utensilios, son compostables y biodegradables.

AGUAS GRIS Y AGUAS RESIDUALES
No vierta las aguas residuales de los plates de lavado sobre el suelo, las zonas de paisaje, o en un drenaje pluvial.

No descargue agua gris ( ducha o agua de lavado) en el suelo, las zonas de paisaje, o en un drenaje pluvial.

Cuando utilice un tanque/ vejiga de aguas residuales, utilice un embudo para evitar que el agua se derrame sobre el suelo.

Disponga las aguas grises o las aguas residuales en los inodoros portatiles en el lugar o Ilevelo al fregadero o inodoro de servicios pliblicos fuera el sitio conectado a la alcantarilla sanitaria.

Ciudad de Carpinteria Ciudad de Goleta
www. carpinteria. ca. us www. CityofGoleta. org
Public Works Public Works
Department Department
805.80. 3415 805. 961. 7500
stormwater@ci. carpinteria. ca. us stormwater@cityofgoleta. org 805.75. 8275 805- 925- 0951, ext. 7270
stormwater@ci. lompoc. ca. us regulatorycompliance@cityofsantamaria. org Ciudad de Santa Barbara
www. sbcreeks. com
Creeks
Division
805.97. 2658
creeks@santabarbaraca. gov

POPCORN
i
Ciudad de Lompoc
www. CityofLompoc. com
Economic and Community
Development Department
Ciudad de Santa Maria
www. cityofsantamaria. org
Department
of Utilities
Ciudad de Solvang Condado de Santa Barbara
www. CityofSolvang. com www. SBProjectCleanWater. org
Public Works Project
Department Clean Water
805. 688. 5575 805. 568. 3440
stormwater@cityofsolvang. com cleanwater@c79et

BUELLTON

SOLVANG
Las ciudades de Buellton, Carpinteria,
Goleta, Lompoc, Santa Barbara, Santa
Maria, ye Solvang, y el condado de
Santa Barbara tienen un programa
extenso sobre la gestion de aguas
pluviales con una mayor seleccion de
informacion y util herramientas para
ayudar a plantificar su evento.

Aproveche los servicios gratuitos:

Descargue uimprima materiales BMP
Al recibir su permiso de Eventos
Especiales, compruebe:

Tutorial" posterior al evento
Inspeccion o junta requerida
Se requiere permiso de basura
Se requiere contendedor de basura
Eventos grandes o
lugares con mas de
2, 000 personas pueden ser requeridas
para implementar una Reduccian
de Residuos, Plan de Reutilizacibn y
Reciclaje ( AB 2176)
Asegurese siempre de:

Comprender el drenaje in situ.

Identificartodos los drenajes pluviales
in situ ensenadas ycuencas de
captacion o las cuencas
mas cercanas.

Protegertodos los drenajes pluviales
in situ con un rollo de fibra, tejido de
filtro o berma de balsa de grava en
cada cuenca de captura en el sitio o
la mas cercana ubicacion de drenaje
fuera del sitio para la duracion
del evento.

Retirar toda la proteccion de las
entradas de drenaje pluvial al final
del evento.

No instalar proteccion a la entrada
de drenaje pluvial que pueda causar
inundaciones si se pronostica Iluvia.
0 DE
PIEZA

BANOS PORTATILES
Localice los bafios portables a un minima de 50 pies de distancia de las instalaciones de drenaje.

Asegarese de que los banos portables tengan contencion secundaria para evita la descarga de residuos.

RESIDUOS DE MASCOTAS Y GANADO
Coloque la ropa de cama y
el estiercol sucios en insectos resistentes ycontenedores de residuos a prueba de fugas.

Revuelve los residuos de mascotas en la basura, incluso cuando use balsas biodegradables.

Comunfquese con su ciudad y pregunte sabre su campana " Close the Loop" y sabre cualquier texto o grafico
promocional que pueda usar en su campana multimedia para ayudar a compartir la palabra.

Visite Close the Poop Loop en http:// closethepooploop. com para obtener mas detalles y descubrir la verdad sobre el residua de perro.

RESIDUOS DE MADERA 0 VERDE
Done plantar, centros de mesa yotros decorativos a un refugio local para personas sin hogar/ viviendas, centro de la tercera edad u organizacion benefica sin fines de lucro.

Reutilice, done o devuelva paletas a los proveedores.

Done accesorios antiguos del escenario a las escuelas locales o a un grupo de teatro local.

Lleve productos o paletas de madera inutilizables yno tratados a una instalacion designada del condado para su reciclaje. Visite Less is More en http:// lessismore. org para la ubicacion de las instalaciones de reciclaje de madera.

RECICLAJE
Coloque todos los contenedores reciclables visibles junta a cada contenedor de basura en toda la ubicacion del evento.

Aplanetodas las cajas y
reserve para el reciclaje de carton.

Marque claramente todos los recipientes utilizados para recoger materiales reciclables comp carton, envases de bebidas aluminio, vidrio, plastico) y papel ( panfletos, volantes, programas, entradas, recibos, catalogos).

Pongase en contacto con su transportista de residuos para obtener mas informacion sobre el reciclaje comercial ( AB 341) y el reciclaje de productos organicos comerciales ( AB 1826) o visite Less Is More en http:// Iessismore. org para mas informacion.

BASURA
Considere la posibilidad de plantificar un evento sin residuos y promover este esfuerzo con los participantes del evento. Visite Less is More en Ip://essismore. orgpara obtener informacion sobre coma planificar un evento de cero residuos.

Coloque todos los contenedores de basura en lugares visible.

Supervise todos los contendores de basura durante el evento y vacie regularmente para evitar el desbordamiento.

Mantenga el lugar del evento libre de basura durante las horas del evento y despues de cada dia del evento.

Retire toda la basura o cualquier marca por toda actividad relacionad con el evento, dejando el lugar del evento y el derecho de via publico limpio ylibre de basura.

Programe una barredora de caller para limpiar rutas y areas de estacionamiento despues de la conclusion.

LAVADO A PRESION
No lave o enjuague a presion o el area del estacionamiento a menos que el agua de lavado se recoja y descargue en el fregadero, inodoro u otro drenaje conectado a la alcantarilla sanitaria o se dirija a un paisaje o areas sin pavimentar.

Configure una berma perimetral y/ o bloquee las entradas de drenaje pluvial.

Use una aspiradora de taller para recoger el agua de lavado y deseche adecuadamente.

Utilice el cubo de fregona para eliminar el arte publico temporal ( tiza, pintura, carbon, arcilla) en las aceras, etc. Trate de lavar sin jabones y disolventes al retirar las marcas de eventos, etc.

OLEA LOh IPOC t• , 7, 411111aras,"°
FUG
Ciudad de Solvang
www. CityofSolyang. com
Ciudad de Buellton Ciudad de Carpinteria
www. CityofBuellton. com www. carpinteria. ca. us
Ciudad de Goleta
www. C ityof G o l eta. c o m
Ciudad de Lompoc
www. CityofLompoc. com
Ciudad de Santa Maria
www. C ityofSantaMaria. co m
Ciudad de Santa Barbara
www. sbcreeks. com
Condado de Santa Barbara
www. SBProf8e Water. org
81 82

CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.b
Meeting Date: January 23, 2023
SUBJECT: Discussion and possible action for City Council appointments of members to the Design Review Committee, Planning Commission, and Tourism Advisory Committee for two-year terms ending December 31, 2024.

PREPARED BY: Annamarie Porter, City Clerk
DISCUSSION:

City of Solvang Municipal Code, Title 2 Boards and Commissions, details the establishment of the individual boards and commissions, their membership, organization and meetings, and duties and responsibilities.

Planning Commission consists of five (5) members, residing within the incorporated City of Solvang, each appointed by a member of the City Council.

Duties include, but are not limited to developing, preparing, periodically reviewing, revising and maintaining the general plan; implementing the general plan through actions including, but not limited to, the administration of specific plans and subdivision ordinances; annually reviewing the capital improvement program of the city and the local public works projects of other local agencies for their consistency with the general plan; preparing, adopting and recommending to the city council plans and drafts of such regulations, programs and legislation as may, in its judgment, be required for the systematic execution of the general plan; acting as an advisory agency for the city council in connection with the Subdivision Map Act; investigating and recommending plans to the city council for the improvement and beautification of the city, including matters such as the opening, straightening, widening, closing of or parking on streets, improvement and development of public streets, improvement and development of public buildings and works, the subdivision of lands and the supplementation or the change of zoning regulations and districts; promoting the public interest in, comment on and understanding of the general plan and regulations relating to it; consulting with and advising public officials and agencies, public utility companies, civic, educational, professional and other organizations and citizens concerning implementation of the general plan; promoting the coordination of local plans and programs with the plans and programs of other public agencies; reviewing and approving, disapproving or conditionally approving, or providing recommendations to city council, all applications submitted for development plans, conditional use permits, tentative map, specific plans, and any other application as specifically provided under this code; and such other functions and duties as imposed by law or as the city council may provide.

Applications for Planning Commission were received from the following:

Kief Adler
Jennifer Dryden Hess
Denise El Amin
Scott Gold
Joan Jamieson
Aaron Petersen
Justin Rodriguez
Jack Williams
Design Review Committee consists of five (5) members, residing within the incorporated City of Solvang or operating a business with the Santa Ynez Valley, each appointed by a member of the City Council whose purpose and intent is to preserve and enhance the historical Danish and northern 83 European architectural styles, historic assets and character of the town’s commercial centers; to promote safe, functional and attractive development of business and commercial areas; to unify commercial ( and industrial) properties; to protect and preserve the unique and cultural features within Solvang; and to protect commercial and residential property values by enhancing the city’s appearance.

Qualifications are that they be a legal resident or a business operator with a business within the Santa Ynez Valley with a demonstrated interest in, and knowledge of, architectural history, architecture, local history or be knowledgeable in fields related to historic preservation, construction, planning, geography, landscape architecture, urban design, Danish culture, arts, or real estate. As used herein, “Santa Ynez Valley” is coterminous with the following ZIP codes. 93463, 93464, 93441, 93460.

Applications for Design Review Committee were received from the following:

Patrick Cavanaugh
Jennifer Dryden Hess
Denise El Amin
Esther Jacobsen Bates
Christopher Lapp
Maryvonne Martin
Tourism Advisory Committee consists of five (5) members appointed by a member of the City Council, whose purpose and intent is to promote Solvang as a tourist destination to enhance the quality of life for Solvang community. Building upon and featuring the unique and authentic character of Solvang and Danish heritage and shall serve as the advisory committee to City Council to develop and promote Solvang as a major tourist destination. The City Council by majority vote may appoint up to two (2) additional members
Members shall represent a cross section of the community as it relates to tourism and represent as many of the following categories as possible: large hotel, small hotel, large retailer, small retailer, shopping center, restaurant, cultural-visual and/or performing arts, real estate, local attraction or a profession within the marketing community. Each tourism advisory committee member shall be a legal resident within the boundaries of one (1) of the following zip codes at the time of the member’s appointment and during the member’s tenure in office: 93463, 93464, 93427, 93460, 93440 (Solvang, Buellton, Santa Ynez and Los Alamos). Duties and responsibilities include making recommendations pertaining to tourism marketing initiatives, tourism projects, and long-range plans for the tourism industry; investigate, research, and report on the feasibility of adoption or implementation of ideas and initiatives to further the city’s tourism efforts and increase tax revenues and visitation numbers; make recommendations on the selection of consultants and/or agencies providing professional marketing/advertising services required by the city and any determination of appropriate scope of work; make recommendations for marketing budget allocations; monitor and evaluate effectiveness of marketing and tourism programs.

Applications for Tourism Advisory Committee were received from the following:

Tracy Beard
Shannon Brooks
Denise El Amin
Alex Grenier
John Jukubek
Kim Jensen
Vivian Kaslow
John Martino
V. Louise Smith
Vashti Wilson
84 Staff is recommending that City Council members make their appointments to these boards and if approved by a majority any additional members of the Tourism Advisory Committee so that the Commission and Committees can begin to meet and do business for 2023.

ALTERNATIVES:

Council could postpone the appointment, however in doing so, there would be no meetings of advisory bodies until appointments were made.

FISCAL IMPACT:

None
ATTACHMENTS:

A. Meeting Body Applicants
B. Applications submitted for consideration.

C. Public Comment
85 Advisory Body Applicants
Committee Applicant District / City
Planning Commission
Adler, Kief 2
Dryden Hess, Jennifer 2
El Amin, Denise 1
Gold, Scott 3
Jamieson, Joan 1
Petersen, Aaron 2
Rodriguez, Justin 1
Williams, Jack 1
Design Review Committee
Cavanaugh, Patrick 1
Dryden Hess, Jennifer 2
El Amin, Denise 1
Jacobsen Bates, Esther 4
Lapp, Christopher 3
Martin, Maryvonne 2
Tourism Advisory Committee
Beard, Tracy Santa Ynez
Brooks, Shannon Santa Ynez
El Amin, Denise 1
Grenier, Alex UnIncorp
Jukubek, John UnIncorp
Jensen, Kim 3
Kaslow, Vivian Santa
Barbara
Martino, John 2
Smith, V. Louise 3
Wilson, Vashti 3
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Design Review Committee
Jennifer Dryden Hess
1899 Old Mission Dr 2
same
[email protected] 3.5
Northern Trust - Real Estate/Workplace
X
DRC; Branding & Design since Sept.2020
X 3pm
x
NONE
30+ years as a corporate real estate professional with experience in strategy, demographics analysis, lease and acquisitions/ dispositions negotiations, site selection, design, project management expertise and facility operations oversight. Demand analysis and long range strategic planning for dynamic and complex portfolios, including NT for 21+ yrs and The Walt Disney Co for 10yrs prior, recently awarded Corp Real Estate Executive of the Year for the Southern California Chapter of CoreNet Global, the industry's leading professional association in Nov 2022.

Sr. Vice President
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See above
12/30/2022
Jennifer Dryden Hess
Masters of Business Administration, UCLA, Anderson School BS -Sociology, UCLA; Interior & Environmental Design Coursework, UCLA Extension Architecture, Art/Art HIstory, French, University of Paris, Sorbonne Design Review Committee member since Feb 2021; GPAC member since May 2021 Branding and Design Committee member since Sept. 2020
Numerous special interest groups & affiliations valley wide As a committee member since 2020, I have enjoyed participating in the process of preserving and maintaining the historical Danish and Northern Eurporean architectural style that continues to make Solvang a very unique and special place for our residents and visitors alike. If needed, I would enjoy the oppotunity to continue to serve. 107
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Educational Background:

B.S. Degree in Clinical Nutrition from Cal Poly
Civic Activities & Community Involvement:

Participated in School based projects when my children were in school. Participated in hospital and healthcare related functions serving the community; health fairs, organized rur Approximately how many City Council or advisory body meetings have you attended in the last 24 months? Please describe the reasons for attendance or topics of Interest? I have been involved in my parents' businesses for 8 months. During that period I have not attended any City Council or advisory body meetings, but look forward to becomi I do attend the Visit SYV Board meetings when I am able to attend. I also recently attended Why are you seeking the appointment to a City Council Advisory Body? I feel I bring two perspectives to Solvang and a committee like TAC; that of a business own, and native to Solvag, and also a tourist's perspective, having come to the valley many man) to visit familyand friends. I also have many friends who live in Los Angeles and visit now ar They provide valuable feedback as well.

I hereby ce ify tlit the information contained in this application and any accompanying documents is n: trrec: kno/ ge
Date 12.9.2022
Print Na vv nS8nKaslow
Informati on provided on this form ispublic ; t, of the press, or the general public. n ormat,on and may be made availableto other applicants , members135 136
Educational Background:

San Jose City College
Civic Activities & Community Involvement:

Solvang Conference and Visitors Bureau - Board Member 4 terms over the years Solvang Chamber of Commerce - Served 3 terms as president over the years Christmas tree in the park - Raised the money to purchase and plant a 20Ft Blue Spruce lJ In 2019
Approximately how many City Council or advisory body meetings have you attended inthe last 24 months? Please describe the reasons for attendance or topics of Interest? I try and attend at least one City Council meeting a month.

I attend City Council meetings to stay informed ..

Why are you seeking the appointment to a City Council Advisory Body? I would like ro increase our tourist numbers. I feel that we are a unique tourist destination Work with the City Marketing manager to increase mid-week hotel occupancy Develop a conference center to increase mid-week business ( Remodel Vets Hall) I hereby certify that the information contained in this application and any accompanying documents is true and correct to the best of my knowledge.

Signature _________________ Date: 12/12/22
Print NameJohn Martino
Information provided on this form is public information and may be made available to other applicants, members of the press, or the general public.
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MBA ( Masters in Business Administration
combination of marketing, Public Relations & Communications disciplines) Statistics specialization)
Host of SYV Juneteenth celebrations and contributor for numerous community events 8)
Attended by request in support of SYV Juneteenth & SYV Pride, to receive proclamations, and to address the Tourism Committee.

As a resident of Solvang and a small business owner, I feel it is my duty to serve my community. Moreover, my strengths and expertise are well suited for this position, and my diverse background offers a unique perspective that could be of great benefit to the Tourism Committee.
1/11/23
Vashti" Tameka Wilson
BS - Bachelor of Science in Integrated Marketing Communications myriad certifications in Data Analytics, Digital Marketing, Data Science & SEO search engine optimization)*
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January 16, 2023
Mayor Infanti, Solvang City Council Members,
I am writing this letter as an endorsement of Joannie Jamison for Planning Commissioner.

As you know Joannie has served on the Planning Commission for the past two years and is ready for another two-year appointment.

Joannie’ s long-time commitment to public service is well known. She has served on various committees and boards, for example, the former Board of Architectural Review, and others. She was elected to serve eight years on the Solvang City Council.

Because she is a Land Use Planning Professional of many years, with well-known projects and clients, she is the ideal person to return to the Planning Commission.

You and the community of Solvang will be well served to return Joannie to the Planning Commission.

Sincerely,
Jim Richardson
Former Solvang Mayor
148

SOLVANG CITY COUNCIL
January 23, 2023
Agenda Item 6.b
Discussion and possible action for City Council appointments of members to the Design Review Committee, Planning Commission, and Tourism Advisory Committee for two-year terms ending December 31, 2024

PUBLIC COMMENT RECEIVED
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Nicholas Kennedy
1682 Juniper Avenue
Solvang, CA 93463
District 4
January 20, 2023
To the Solvang City Council:

I, a secondary educator and Solvang resident, am writing this letter as an endorsement of Tameka Vashti Wilson’s leadership, equanimity, and expertise, in support of her application to serve as a member on Solvang’ s Tourism Advisory Committee.

Ms. Wilson’s incisive grasp on diplomacy—rooted in her strong background in business administration and honed by her experiences as a linguist and contracts/contracting officer in the Air Force—and her pragmatism as a local entrepreneur within our community attest to her worthy candidacy as a prospective member of Solvang’ s Tourism Advisory Committee.

As a two-time volunteer for Solvang’s now annual Juneteenth celebration—hosted by Ms. Wilson—I can attest to Ms.

Wilson’s excellent leadership capabilities and her ability to foster a sense of unity and collegiality amongst a multigenerational group of volunteers, local businesses, nonprofits, and community partners. I have witnessed Ms.

Wilson’s judicious capabilities in moments of organizational conflict resolution and her commitment in ensuring that all voices are given the opportunity for full expression. This communicative gift would greatly benefit Solvang’s Tourism Advisory Committee.

In particular, I am continually impressed by Ms. Wilson’s ability to both forge and nurture lasting partnerships with individuals and organizations within both the Santa Ynez Valley and in the larger community of Santa Barbara County.

Within the capacity of the annual SYV Juneteenth celebrations, Ms. Wilson has encouraged participation from locals, as well as tourists, both in her advertising efforts and in the inclusive nature of her programming, demonstrating the communal hospitality and welcoming nature that are hallmarks of the spirit of Solvang.

Ms. Wilson, as a resident of Solvang who is also a small business owner, possesses a keen understanding of relationship-building, within—but certainly not limited to—the context of our beloved town. Ms. Wilson’s business acumen is demonstrated both locally and globally via the marketing plan that she developed for “ Curtsy”— a top application in Apple’s App Store highlighted in Forbes 30 Under 30—and through her viral grassroots marketing campaign in support of Madi’s Treasure Box. Ms. Wilson’s locally-embedded and globally-minded expertise would serve as valuable assets for a Tourism Advisory Committee that, according to its mission statement, seeks “ to inform and engage all tourism sectors and the community, creating a unified, dynamic consortium that increases tourism in Solvang for the benefit of the entire community.”
I endorse Tameka Vashti Wilson’s candidacy for membership on Solvang’s Tourism Advisory Committee with my highest commendation.

Sincerely,
Nicholas R. Kennedy
151
Allow sender | Block sender
From: Bob Seegmiller
To: City Clerk
Cc: Vashti Wilson
Subject: Letter of recommendation for Tameka Vashti Wilson as a member of the Tourism Board Date: Friday, January 20, 2023 3: 52: 56 PM
Caution! This message was sent from outside your organization.

Dear Council,
We have known Vashti Wilson since 2019 as a pleasant neighbor whom we met through her daughter who was friends with children of some of our friends and neighbors.

We have enjoyed her friendship and activities with both her and with her and her daughter. She is a dedicated mother, a former Air Force officer, and a well-organized and successful entrepreneur.

Vashti possesses a keen and active mind and cheerful demeanor. She loves this valley, and, in particular, Solvang.

She seems approachable, shows considerable creativity in her work and organization of her projects, and is considerate of others' ideas as she plans, and we feel she would be a good asset to Solvang's Tourism Board.

Robert and Ruth Seegmiller
805-693-4044
Solvang District 3
152
153
From: Uhrig, Charles
To: Public City Council Group
Subject: Planning Commission recommmendation
Date: Monday, January 23, 2023 1: 46: 33 PM
This sender is trusted.

Good day Mayor Infanti and Councilmembers,
I am writing this quick email letter of recommendation for Jack Williams. I will make this short, but I believe
Jack to be the best qualified candidate for your consideration tonight. You have seen his qualifications, but I
also wanted to you to also know that Jack was my selection for the Planning Commission both years that I
served as mayor. To be fair, all the candidates are well qualified for various reasons, but I believe Jack to
stand apart, given his knowledge of the business community (former business owner and Solvang Chamber
Board Director), and for his time serving on the Planning Commission. Lastly, I believe his biggest asset,
is that he doesn’t bring a political agenda with him, which serves the community well, and he is always
well prepared for meetings.

Those are just a few of the reasons that I feel he brings more to the table than the other qualified candidates. I know and trust you will make this important selection with the good of the whole community in mind. Thank you for your service to our community.

Respectfully,
Charlie Uhrig
Former Mayor of Solvang
154

CITY COUNCIL STAFF REPORT
AGENDA ITEM 6.c
Meeting Date: January 23, 2023
SUBJECT: Accept the 2021/ 2022 Annual Comprehensive Financial Report as presented by Ahmed Badawi, CPA
PREPARED BY: Wendy Berry, Administrative Services Director DISCUSSION:

On August 1, 2019, the City entered into a contract with Badawi and Associates for auditing services for three- years with an option to extend through June 2024. This is the fourth annual audit Badawi and Associates has completed for the City of Solvang.

Badawi & Associates conducts their audit in accordance with generally accepted auditing standards as they pertain to Government Auditing Standards issued by the Comptroller General of the United States.

In Badawi and Associates’ opinion, the financial statements present fairly, in all material aspects, the financial position of the City of Solvang as of June 30, 2022. Ahmed Badawi will give a presentation on the financial report and findings of the audit.

The table below identifies the FY 2021- 22 fund balances and the net increase or decrease from the prior FY 2020- 21.

Fund
FY 2021- 22 Ending
Balance
FY 2020- 21 Ending
Balance
Net Increase/
Decrease
General Fund $ 14,551,249 $ . 11,663,928 $ . 2,887,321
Government Impact Fees $ 1,531,507 $ … 1,600,302 $ . ( 68,795) Traffic Safety $ 3,497 $ . 1,992 $ 1,505
Gas Tax $ 91,544 $ . 260,127 $ ( 168,583)
Local Transportation $ 367,730 $ 318,690 $ 49,040
Measure A $ 968,632 $ 985,970 $ ( 17,338)
Skytt Mesa LLMD $ 401,275 $ 352,137 $ 49,138
Capital Projects $ . 11,101 $ ( 23,823) $ 34,924
Water $ . . 12,711,498 $ 12,496,524 $ 214,974
Wastewater $ .. 8,211,441 $ 8,500,496 $ ( 289,055)
Transit $ .. 2,205,969 $ 2,203,954 $ 2,015
General Fund
The increase in General Fund’ s ending balance can be attributed primarily to the increase in transient occupancy tax and sales and use tax, a result of the COVID 19 Pandemic closures ending, and tourism returning to pre COVID levels.

As of June 30, 2022, the General Fund had a total fund balance of $14,551,249. The Fund Balance Policy Revised in 2013, states for emergency reserves, fifty percent of the operating expenditures will be 155
set aside. As of June 30, 2022, the General Fund balance committed for unexpected events is currently at $4.8 million, which is more than the 50% of the $ 9.45 million budgeted for projected expenditures in FY 2022-23.

The chart below identifies the key changes between FY 2020-21 and 2021-22.

Fiscal Year Comparison
General Fund 2021- 22 2020- 21 Over/( Under)
Revenues
Taxes $ 10,062,426 $ 7,515,581 $ 2,546,845
Special Assessments $ - $ - $ -
Licenses and Permits $ 215,497 $ 128,951 $ 86,546
Fines and Forfeits $ 475 $ 7,494 $ ( 7,019)
Intergovernmental $ 961,339 $ 230,439 $ 730,900
Interest $ ( 107,815) $ 6,846 $ ( 114,661)
Charges for Services $ 898,413 $ 758,056 $ 140,357
Miscellaneous $ 104,103 $ 54,205 $ 49,898
TOTAL $ 12,134,438 $ 8,701,572 $ 3,432,866
Expenditures 2021-22 2020-21 Over/( Under)
General Government $ 3,019,870 $ 1,803,038 $ 1,216,832
Public Safety $ 2,201,330 $ 1,855,060 $ 346,270
Culture and Recreation $ 1,096,220 $ 1,504,503 $ ( 408,283) Community Development $ 779,590 $ 747,382 $ 32,208
Public Works $ 1,975,593 $ 1,280,047 $ 695,546
Capital Outlay $ 98,449 $ 271,944 $ ( 173,495)
TOTAL $ 9,171,052 $ 7,461,974 $ 1,709,078
After accounting for designated reserves and other items, the General Fund has an unassigned balance of $9.4 million. The 2023/24 adopted financial plan includes using an estimated $ 1.2 million of the reserves for the general fund capital improvement plan projects. Other uses the City Council may want to consider could be to pay down some of our outstanding liabilities including:

Other Post-Employment Benefits ( OPEB) approximately $ 1.4 million Unfunded Pension Liability ( CalPERS) approximately $ 2.6 million The General Fund designations are as follows:

Unassigned $ 9,459,376
Committed $ 4,830,633
Non-Spendable $ 234,925
Restricted $ 26,315
TOTAL $ 14,551,249
156
Enterprise Funds
The ending balances for the Enterprise Funds are shown below include the net investment in capital assets. The Transit Fund increased slightly.

The Water fund increased its Net Position by approximately $ 214K due to increased revenues from connection fees and higher consumption charges.

The Wastewater Fund had a decrease to its overall net position by $289K primarily due to the completion of the Phase I upgrade of the Wastewater plant which cost a total of $2.96 million. In the Wastewater fund, there is a total of $317,802 in encumbrances being carried over into Fiscal Year 2022- 23 from 2021- 22 primarily for completion of several Capital Projects.

The 2023/ 24 adopted financial plan includes using an estimated $ 3.9 million from reserves for the Water, Wastewater and Transit funds capital improvement projects.

Fund # Fund
FY 2021- 22 Ending
Balance
FY 2020- 21 Ending
Balance
Net
Increase/ Decrease
500 Water $ 12,711,498 $ 12,496,524 $ 214,974
501 Wastewater $ 8,211,441 $ 8,500,496 $ ( 289,055)
502 Transit $ 2,205,969 $ 2,203,954 $ 2,015
The unrestricted amounts and carried over encumbrances for the Enterprise Funds are shown in the charts below which do not include the net investment in capital assets.

Fund # Fund
FY 2021-22
Unrestricted Net
Position
FY 2020-21
Unrestricted Net
Position Net Increase/ Decrease
500 Water $ 7,290,226 $ 6,853,018 $ 437,208
501 Wastewater $ 1,103,657 $ 3,031,353 $ ( 1,927,696)
502 Transit $ 1,870,019 $ 1,761,016 $ 109,003
Encumbrances carried over from FY 2021- 22 to FY 2022- 23 500 Water $ 239,290
501 Wastewater $ 317,802
502 Transit $ 103,447
Financial Highlights:

The general fund reported a fund balance of $14.6 million at the end of the 2022 fiscal year an increase of approximately $ 2.9 million or 24.75% above the fiscal year 2020-2021 balance.

Citywide, the total net position increased by $3.9 million or 8.3% higher than 2020-2021 after conducting all operations and programs. The net position totaled $ 51.7 million dollars at year end. Of that amount, $ 21.5 million ( the unrestricted net position) may be used to meet the City’s ongoing obligations and operating expenses for the next fiscal year.

The City’s Governmental activities reported a net position of $28.6 million dollars. Of the $28.6 million dollars, $ 11.2 million remains unrestricted and available. 157
Overall, Citywide revenues from governmental activities, grants and taxes increased approximately $ 3.7 million compared to the 2020-2021 fiscal year. This increase is due to the record amount of Occupancy and Sales tax received by the City.

Impact Fees ended FY 2021- 2022 with a fund balance of $1.5 million; a decrease of approximately $ 69,000 from FY 2020- 2021. The decrease is primarily due to Impact fees being used to fund Capital Improvement Projects.

The Proprietary funds ended the fiscal year with a net position of $23.1 million ( including the funds’ net investment in capital assets).

The City’ s other non-major governmental funds ended FY 2021- 2022 with a fund balance of

1.84 million, a decrease of $51,000 and from FY 2020-2021. The decrease is due in part to increases in Measure A and Highway Users Tax funds being used to fund projects.

ALTERNATIVES:.

No alternatives
FISCAL IMPACT:.

No fiscal impact
ATTACHMENTS:

A. Independent Auditor’ s Report
B. Annual Comprehensive Financial Report
C. Power Point Presentation
158
Oi+ BADAWI&ASSOCIATES

CERTIFIED PUBLIC ACCOUNTANTS
To theHonorable Mayor and Members of the City Council
Of the City of Solvang
Solvang, California
We have audited the accompanying financial statements of thegovernmental activities, thebusiness-type activities, each major fund, and the aggregate remaining fund information of the Cityof Solvang ( 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 as listed in the table of contents.

In our opinion, thefinancial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, thebusiness- type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flowsthereof for the year thenended in accordance withaccounting principles generally accepted in the United States of America.

We conducted our audit in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inissued by theComptroller General of the United States. Our responsibilities under those standards are further described in the Auditor' s Responsibilities for theAudit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 13 Attachment A
159
To the Honorable Mayor and Members of theCityCouncil
Of theCity of Solvang
Solvang, California
Page2
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report thatincludes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance withgenerally accepted auditing standards andwill always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually orin the aggregate, they would influence thejudgment made by a reasonable user based on the financialstatements.

In performing an audit in accordance with generally accepted auditing standards and we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess therisks of material misstatement of thefinancial statements, whetherdue to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessof the City' sinternalcontrol. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about theCity' sability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged withgovernance regarding, among other matters, the planned scope and timingof the audit, significant audit findings, and certain internalcontrol-related matters that we identified during theaudit.

Accounting principles generally accepted in theUnited States of America require that the management' sdiscussion and analysis, budgetary comparison information, pension information, and OPEB information on pages 17-29 and 90-98 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements inan appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about themethodsof preparing the information and comparing the information for consistency with management' s responses to our inquiries, the basic financial statements, and otherknowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because thelimited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 14 160
15 161
Annual Comprehensive
Financial Report
City of Solvang, California
For the Fiscal Year ended June 30, 2022
Attachment B
162
163
City of
Solvang
Solvang, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Prepared by:

Finance Division
164
165
City of Solvang
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION:

Table of Contents ....................................................................................................................................................... i Transmittal Letter ...................................................................................................................................................... 3 GFOA Certificate ...................................................................................................................................................... 7 Organization Chart .................................................................................................................................................... 8 List of Elected and Appointed Officials .................................................................................................................. 9

FINANCIAL SECTION
Independent Auditor’ s Report ............................................................................................................................. 13 Management’ s Discussion and Analysis ............................................................................................................ 17 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .......................................................................................................................... 34 Statement of Activities ............................................................................................................................... 36 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ......................................................................................................................................... 42 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ................................................................ 43 Statement of Revenues, Expenditures and Changes in Fund Balances ........................................ 44 Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities .................................................................................................................. 45 Proprietary Fund Financial Statements:

Statement of Net Position .................................................................................................................... 48 Statement of Revenues, Expenses and Changes in Net Position ................................................... 50 Statement of Cash Flows ..................................................................................................................... 52 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position .................................................................................................. 56 Statement of Changes in Fiduciary Net Position ............................................................................. 57 Notes to Basic Financial Statements ................................................................................................................ 61 i
166
City of Solvang
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents, Continued
Page
Required Supplementary Information (Unaudited):

Defined Benefit Pension Plan:

Schedule of Proportionate Share of the Net Pension Liability ............................................................ 90 Schedule of Contributions ........................................................................................................................ 92 Other Postemployment Benefits Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios ................................................... 94 Budgets and Budgetary Accounting ............................................................................................................... 96 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ........................................................................................................................................ 97 Impact Fee Special Revenue Fund ..................................................................................................... 98 Supplementary Information:

Budgeted Major Governmental Funds Other than General Fund and Special Revenue Funds:

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

City Projects Capital Projects Fund ................................................................................................. 102 Non-Major Governmental Funds:

Combining Balance Sheet ........................................................................................................................ 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................... 105 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Traffic Safety Special Revenue Fund ............................................................................................... 106 Gas Tax Special Revenue Fund ........................................................................................................ 107 Local Transportation Special Revenue Fund .................................................................................. 108 Measure A Special Revenue Fund ................................................................................................... 109 Skytt Mesa LLMD Special Revenue Fund ...................................................................................... 110 STATISTICAL SECTION (Unaudited)
Financial Trends:

Net Position by Component .......................................................................................................................... 113 Changes in Net Position ................................................................................................................................. 114 Fund Balances of Governmental Funds ....................................................................................................... 116 Changes in Fund Balances of Governmental Funds .................................................................................. 117 Revenue Capacity Information:

Assessed Value and Estimated Actual Value of Taxable Property .......................................................... 118 Direct and Overlapping Property Tax Rates ............................................................................................... 119 Principal Property Taxpayers – Top Ten Payers ......................................................................................... 120 Property Tax Levies and Collections ............................................................................................................ 121 ii
167
City of Solvang
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents, Continued
Page
STATISTICAL SECTION (Unaudited), Continued
Transient Occupancy Tax – Principal Payers and Other Data .................................................................. 122 Water Rates ...................................................................................................................................................... 123 Water Revenue Concentration Data ............................................................................................................. 124 Principal Water Sale Purchasers – Top Ten ................................................................................................. 125 Debt Capacity Information:

Ratios of Outstanding Debt by Type ............................................................................................................ 126 Direct and Overlapping Governmental Activities Debt ............................................................................ 127 Legal Debt Margin Information .................................................................................................................... 128 Pledged-Revenue Coverage ........................................................................................................................... 129 Demographic and Economic Information:

Demographic and Economic Statistics ......................................................................................................... 130 Principal Employers for City of Solvang ..................................................................................................... 131 Operating Information:

Full-Time Equivalent City Government Employees by Function/ Program .......................................... 132 Operating Indicators by Function/ Program ............................................................................................... 133 Capital Asset Statistics by Function/ Program ............................................................................................ 134 iii
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iv
169

INTRODUCTORY SECTION
170
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171
January 23, 2022
To the Honorable Mayor, Members of the City Council, and Citizens of the City of Solvang:

The City follows a policy of preparing a complete set of financial statements in conformity with U.S. generally accepted accounting principles after the end of each fiscal year. This report is published to fulfill that policy for the fiscal year ended June 30, 2022.

Management of the City of Solvang assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that the City has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the City’s financial statements are free of material misstatements.

The firm of Badawi & Associates, Certified Public Accountants has issued an unmodified independent auditor’ s report on the City of Solvang’ s financial statements for the fiscal year ended June 30, 2022. The independent auditor’ s report is located at the front of the financial section of this report.

Management’ s discussion and analysis (MD&A) immediately follows the independent auditor’ s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of the City of Solvang
Solvang, meaning “ Sunny Field,” was founded in 1911 by a group of Danish educators from the Midwest who were in search of a site for a Danish-type folk school. They liked what they saw and envisioned the location of the potential town, nestled between the Santa Ynez and San Rafael mountain ranges as an ideal place to launch the school and where settlers could develop a Danish Colony that we now know as Solvang. Although Solvang has since developed into one of California’s main tourist attractions, its many Danish-American residents continue to perpetuate their Danish heritage as seen by the architectural style in the downtown tourist area. The City is located inland along the Central Coast, some 45 miles north of Santa Barbara, in the historic Santa Ynez Valley.

The City was incorporated on May 1, 1985. It subsequently transitioned from a General Law City to a Charter City in November 2006. Becoming a “ Charter City” means we have more “ local home rule” authority than cities that incorporate under the “general laws” of the State of California.

The Charter is the City’s “ Constitution,” and any changes must be approved by the voters. 172
The City operates under the “ Council-Manager” form of government. Policy making and legislative authority are vested in the City Council consisting of the Mayor and four other elected Council members. The Council is responsible for, among other matters, passing ordinances, adopting the City Budget, appointing committees, and hiring the City Manager and City Attorney.

The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing the daily operations of the City, and appointing other employees and otherwise managing daily operations of the City. The Council members are elected to four-year staggered terms and with the election of 2008, we transitioned from an appointed Mayor to an elected Mayor with a two-year term, who serves as an equal member of the Council. In April 2022, the City adopted election by District, commencing with Districts 3 and 4 in the November 2022 election.

Districts 1 and 2 will be up for election November 2024. Until November 2024, Districts 1 and 2 remain at-large.

The City of Solvang provides a full range of municipal services, including contracted police services, the construction and maintenance of City streets, storm drains, bridges and similar infrastructure type assets, park maintenance and community recreation activities.

Water, wastewater and transit services are provided through the use of an enterprise fund or business-type fund structure.

The annual budget serves as the foundation for the City of Solvang’ s financial planning and control system. Once a final draft budget is achieved, it is presented to the City Council. The Council holds public hearings on the proposed budget and ultimately adopts a formal budget.

The budget is adopted by fund, department, program, and object. The Council periodically reviews during the fiscal year the City’s actual financial activity in relationship to the original budget, and as necessary amends the original budget to reflect changing conditions.

The general fund’ s budgetary comparison, deemed a major fund under the new reporting standards, is presented as required supplementary information in a separate section of this report immediately following the notes to the financial statements. For the City’s other governmental-type funds with adopted budgets, a budget to actual comparison schedule is presented as optional information in the section of this report containing combining statements and individual fund schedules.

Local Economy
The City’s economy largely depends on tourism, which generates a more than half of the City’s General Fund revenues. Major attractions for visitors to the City include the City’s Danish themed village with unique shops, inns, bakeries, European style streets and architecture, cafes, local wineries, art galleries, golf courses, equestrian and other livestock production, the Santa Ines Mission, and the Elverhoj Museum of History and Art and special events. 173
This year the City saw an increase in property tax revenue of 5.3%, and sales tax revenues increased by 31.9%. Our top three sales tax generators by business category for FY 2020-21 are retail, food services, and manufacturing, in that order. Our largest General Fund revenue source, Transient Occupancy Tax (TOT) increased by 47.88%, and the occupancy rate was up by 17.8%.

While the trends in revenues showed significant increases in percent terms, it should be noted that the Fiscal Year ending June 30, 2022 was the best Fiscal Year on record in terms of Governmental Activities Revenues. Those revenues increased by $4.4 million or 47.8% from FY 2020-21. This large increase in revenues in FY 2021-22 can be attributed to the reduced revenues received in FY 2020-21 due to the economic effects of the COVID-19 pandemic on the tourism market.

The City is also mindful of costs associated with increasing pension and retiree health liabilities, and growing regulations for stormwater management, requiring additional resources for implementation. The City continues to take a very conservative approach in the budgeting process.

We strive to operate within current revenue streams and are careful to minimize use of reserves.

Staff has an awareness of the challenges we face and continues to be conservative in their spending.

Long Term Financial Planning and Major Initiatives
This year the City completed about $5 million in capital projects. For fiscal year ending 2022-23, the City has budgeted approximately $6.4 million for capital projects, mostly for water, and public works. An additional $47.2 million in capital projects are included in the City’s Ten Year Capital Improvement Plan. These projects include about $13.5 million in public works projects, $16.2 million for wastewater system improvements, $15 million for water and $2.5 million for sewer improvements.

The major initiative planned for FY 2022-23 is the Waterline Replacement Project, which will be followed by various General Fund, Measure Aand Road Maintenance and Rehabilitation (RMRA) projects.

The General Fund ended fiscal 2021-22 with a fund balance of approximately $14.6 million. Of that fund balance, $ 4.8 million is committed for emergency reserves, and approximately $ 9.5 million remained unassigned. There is approximately $3.4 million available in Gas Tax, Impact Fees, Traffic Safety, Measure A, and Local Transportation funds, which will be used for future projects; mainly street infrastructure, improvements, maintenance and sidewalk projects.

Relevant Financial Policies
The City Council adopted a Fund Balance Policy in 2013 that sets the City’s General Fund balance committed for emergency contingencies at 50% of the current year operating budget and is to be adjusted annually.

Starting in the 2019-20 Fiscal Year, the City reviews and adopts financial policies annually as part of the budget adoption process. The policies include strategic goals, budget monitoring, long-term 174
175
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Solvang
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/ CEO
176
Ci tyofSolvangOrganizationalChart

RESIDENTSOFCITYOFSOLVANG

CI TYCOUNCIL

CI TYMANAGER

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THECITYMANAGER

ACCOUNTING

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COORDINATOR

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MA RKETING
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MA RKETINGAND
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MANAGER
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177
City of Solvang
List of Elected and Appointed Officials
As of June 30, 2022
Elected Officials
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
Appointed Officials
City Manager
City Attorney
City Clerk
Charlie Uhrig
Mark Infanti
Robert Clarke
Jim Thomas
Claudia Orona
Xenia Bradford
David Fleishman
Annamarie Porter
178
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179

FINANCIAL SECTION
180
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181
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
Of the City of Solvang
Solvang, California
Report on the Audit ofthe Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Solvang ( 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 as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’ s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
182
To the Honorable Mayor and Members of the City Council
Of the City of Solvang
Solvang, California

Page 2 ends

Auditor’ s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’ s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. Therisk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material ifthere is a substantial likelihood that, individually or inthe aggregate, they wouldinfluence thejudgment made by a reasonable user based on the financial statements.

Inperforming an auditinaccordance withgenerally accepted auditing standards and Government Auditing Standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding ofinternal control relevant to the audit inorder todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scopeandtimingoftheaudit, significant auditfindings, andcertaininternal control-related matters that weidentified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’ s discussion and analysis, budgetary comparison information, pension information, and OPEB information on pages 17–29 and 90–98 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements inan appropriate operational, economic, or historical context. Wehave appliedcertain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’ s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 183
To the Honorable Mayor and Members of the City Council
Of the City of Solvang
Solvang, California

Page 3 ends

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

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 3, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions oflaws, regulations, contracts, andgrant agreements andother matters. Thepurpose ofthat reportis solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and notto provide an opinion onthe effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’ s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
January 3, 2023
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185
Management’ s Discussion and Analysis
As management of the City of Solvang, we offer readers of the City of Solvang’ s financial statements, this narrative overview and analysis of the financial activities of the City of Solvang for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3-6 of this report.

Financial Highlights
The general fund reported a fund balance of $14.6 million at the end of the 2022 fiscal year; an increase of approximately $2.9 million or 24.75% above the fiscal year 2020-2021 balance.

Citywide, the total net position increased by $3.9 million or 8.3% higher than 2020- 2021 after conducting all operations and programs. The net position totaled $51.7 million dollars at yearend. Of that amount, $ 21.5 million ( the unrestricted net position) may be used to meet the City’s ongoing obligations and operating expenses for the next fiscal year.

The City’ s Governmental activities reported a net position of $28.6 million dollars. Of the

28.6 million dollars, $11.2 million remains unrestricted and available.

Overall, Citywide revenues from governmental activities, grants and taxes increased approximately $3.7 million compared to the 2020-2021 fiscal year. This increase is due to the record amount of Occupancy and Sales tax received by the City.

Impact Fees ended FY 2021-2022 with a fund balance of $ 1.5 million; a decrease of approximately $ 69 thousand from FY 2020- 2021. The decrease is primarily due to Impact Fees being used to fund Capital Improvement Projects.

The Proprietary funds ended the fiscal year with a net position of $23.1 million ( including the funds’ net investment in capital assets).

The City’s other non-major governmental funds ended FY 2021-2022 with a fund balance of

1.84 million, a decrease of $51 thousand from FY 2020- 2021. The decrease is due in part to increases in Measure A and Highway Users Tax funds being used to fund projects. 186
Management’ s Discussion and Analysis
Overview of the Financial Statements
The discussion and analysis provided here are intended to serve as an introduction to the City of Solvang’ s basic financial statements. The City of Solvang’ s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves.

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

The statement of net position presents financial information on all of the City of Solvang’ s assets and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Solvang is improving or deteriorating.

The statement of activities presents information showing how the City of Solvang’ s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods ( e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Solvang that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City of Solvang include general government, public safety, highways and streets, planning and economic development, and culture and recreation. The business-type activities of the City of Solvang include water, wastewater and transit operations.

Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Solvang, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Solvang can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 187
Management’ s Discussion and Analysis
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government- wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’ s near- term financing requirements.

Because the focus of governmental funds is narrower than that of the government- wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements.

By doing so, readers may better understand the long-term impact of the government’ s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of Solvang maintains eight individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, and the impact fee fund, which are considered to be major funds. Data from the other six governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.

The City of Solvang adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 42-45 of this report.

Proprietary Funds. The City of Solvang maintains two different types of proprietary funds.

Enterprise funds are used to report the same functions presented as business- type activities in the government-wide financial statements. The City of Solvang uses enterprises funds to account for its water, wastewater, and transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Solvang various functions. The City of Solvang uses an internal service fund to account for the replacement of its fleet of vehicles and major equipment. Because these services predominantly benefit governmental rather than business- type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government- wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, wastewater, and transit operations, all of which are considered to be major funds of the City of Solvang. Conversely, the internal service fund is a single presentation in the proprietary fund financial statements. 188
Management’ s Discussion and Analysis
The basic proprietary fund financial statements can be found on pages 48-53 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reported in the government- wide financials statements because the resources of those funds are not available to support the City of Solvang own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The City of Solvang maintains one type of fiduciary funds. The Custodial fund reports resources held by the City of Solvang in a custodial capacity for individuals, private organizations, and other governments. The City of Solvang maintains one custodial fund on behalf of the Santa Ynez Valley Tourism Business Improvement District ( District). The City collects the revenue from the local hotels, and then remits the funds to the District.

The fiduciary fund financial statements can be found on pages 56-57 of this report.

Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government- wide and fund financial statements. The notes to the financial statements can be found on pages 61-88 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the general and impact fee funds budget to actual comparisons, funding progress on the City’s other post-employment benefits ( OPEB), the City’s proportionate share of the net pension liability in regards to the California Public Employees Retirement System ( CalPERS) cost sharing pool of which the City is a member, and the City’s pension plan employer contributions. Required supplementary information can be found on pages 90-98 of this report.

The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information on the City’s pension and OPEB liabilities. Combining and individual fund statements and schedules can be found on pages 102-110 of this report.

Government-wide Overall Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of a government’ s financial position. In the case of the City of Solvang, assets and deferred outflows of resources exceeded liabilities by $51,714, 562, at the close of the most recent fiscal year. 189
Management’ s Discussion and Analysis
City of Solvang Net Position
By far, the largest portion of the City of Solvang’ s net position ( 52%) reflects its investment in capital assets ( e.g. land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City of Solvang uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending.

An additional portion of the City of Solvang’ s net position ( 6.5%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $21.5 million is unrestricted and may be used to meet the government’ s ongoing obligations to its citizens and creditors.

At the end of the current fiscal year, the City of Solvang is able to report positive balances in all reported categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year.

Total
Percentage
Change
Assets: 2021 2022 2021 2022 2021 2022 2021- 2022
Current and other Assets 16, 967, 088$ 19, 778, 766$ 14,197, 330$ 12,227, 052$ 31,164, 418$ 32, 005, 818$ 3% Capital Assets 12, 740, 666 13, 988, 390 11,555, 587 12,865, 006 24,296, 253 26, 853, 396 11% Total Assets 29, 707, 754$ 33, 767, 156$ 25,752, 917$ 25,092, 058$ 55,460, 671$ 58, 859, 214$ 6% Deferred outflows of
resources:

Pension plan and
and OPEB deferrals 871,391$ 881,865$ 290,465$ 293,955$ 1,161,856$ 1,175,820$ 1% Current liabilities 679,920$ 634,467$ 979,693$ 244,046$ 1,659,613$ 878,513$ - 47% Noncurrent liabilities 4,747, 104 3,109, 832 1,667, 249 1,057, 409 6,414, 353 4,167, 241 - 35% Total Liabilities 5,427,024$ 3,744,299$ 2,646,942$ 1,301,455$ 8,073,966$ 5,045,754$ - 38% Deferred inflows of resources:

Pension plan, OPEB, and leases 586, 395$ 2,319, 068$ 195, 466$ 955, 650$ 781, 861$ 3,274, 718$ 319% Net Position:

Invested in capital assets 12,740, 666$ 13,988, 390$ 11,555, 587$ 12,865, 006$ 24,296, 253$ 26, 853, 396$ 11% Restricted 3,545,533 3,390,500 - - 3,545,533 3,390,500 - 4% Unrestricted 8,279,527 11,206,764 11,645,387 10,263,902 19,924,914 21,470,666 8% Total Net Position 24,565, 726$ 28,585, 654$ 23,200, 974$ 23,128, 908$ 47,766, 700$ 51, 714, 562$ 8% Table A-1
City of Solvang Net Position
Governmental Activities Business- type Activities Total 190
Management’ s Discussion and Analysis
The City of Solvang’ s overall net position increased by $3.9 Million from the prior fiscal year.

The reasons for this overall increase are discussed in the following sections for governmental and business-type activities.

Governmental Activities. Taxes are the primary source of revenue for governmental activities and account for 73% of all revenues. The tax category includes property tax, sales tax, transient occupancy tax (TOT) and other taxes.

Solvang is a tourist community and the largest portion of its tax revenues come from transient occupancy tax ( local hotel tax). These taxes generate 43.9% of all governmental- type revenues.

In fiscal year 2021-22, local hotel tax increased approximately $1.95 Million or 47.9% from fiscal year 2020- 21.
191
Management’ s Discussion and Analysis
The City’s governmental-type operating expenses consist of public safety, culture and recreation, public works, general government, and community development.

When all operations were concluded, the governmental activities function generated an increase of $4 Million in net position for FY 2021-22. In FY 2020-21, there was an increase of $746 thousand.

Total
Percentage
Change
2021 2022 2021 2022 2021 2022 2021- 2022
Revenues:

Program revenues
Charges 1,116,674$ 1,382,037$ 6,555,550$ 6,846,318$ 7,672,224$ 8,228,355$ 7% Operating grants and contributions 1,213,507 2,242,909 1,452,986 1,470,179 2,666,493 3,713,088 39% Capital grants and contributions 129, 594 139, 958 22, 978 166, 715 152, 572 306, 673 101% General revenues:

Transient occupancy taxes 4,078,826 6,031,568 4,078,826 6,031,568 48% Property, sales and other taxes 3,436,755 4,030,858 3,436,755 4,030,858 17% Other 54,915 ( 41,348) 12,236 ( 48,721) 67,151 ( 90,069) - 234% Total revenues 10,030, 271 13,785, 982 8,043, 750 8,434, 491 18,074, 021 22, 220, 473 23% Expenses:

General government 1,973,026 2,911,369 1,973,026 2,911,369 48% Public safety 1,861,310 2,189,633 1,861,310 2,189,633 18% Culture and recreation 1,651, 868 1,221, 471 1,651, 868 1,221, 471 - 26% Community development 704,481 805,316 704,481 805,316 14% Public works 2,393,971 2,580,297 2,393,971 2,580,297 8% Water 5,280,019 5,216,176 5,280,019 5,216,176 - 1%
Wastewater 2,222,770 2,248,410 2,222,770 2,248,410 1%
Transit 1,029, 086 1,099, 939 1,029, 086 1,099, 939 7%
Total expenses 8,584,656 9,708,086 8,531,875 8,564,525 17,116,531 18,272,611 7% Increase ( decrease) in net position
before transfers 1,445, 615 4,077, 896 ( 488, 125) ( 130, 034) 957, 490 3,947, 862 312% Transfers ( 697,967) ( 57,968) 697,967 57,968 - -
Increase ( decrease) in net position 747, 648 4,019, 928 209, 842 ( 72, 066) 957, 490 3,947, 862 312% Net position, beginning ( restated) 23,818,078$ 24,565,726$ 22,991,132$ 23,200,974$ 46,809,210$ 47,766,700$ 2% Net position, ending 24,565, 726$ 28, 585, 654$ 23, 200, 974$ 23,128, 908$ 47,766, 700$ 51, 714, 562$ 8% Table A-2
City of Solvang' s Changes in Net Position
Governmental Activities Business- type Activities Total 192
Management’ s Discussion and Analysis
Business-type Activities. For the City of Solvang’ s business-type activities, the City’s net position decreased, ending the year with a balance of $23,128,908. The decrease in net position for business-type activities (water, wastewater, and transit funds) was approximately $72 thousand from the prior fiscal year. Water revenue increased by 2.53% due to an increase in connections.

Wastewater revenue increased by 10.65% due primarily to more connection fees. Water expenses decreased slightly. This decrease is mainly due to staffing changes. Wastewater and Transit expenses increased slightly mainly due to increases in energy and fuel costs.

Financial Analysis of Governmental Funds
As noted earlier, the City of Solvang uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements.
193
Management’ s Discussion and Analysis
Governmental Funds. The focus of the City of Solvang’ s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Solvang’ s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’ s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City of Solvang itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City of Solvang’ s City Council.

At June 30, 2022, the City of Solvang’ s governmental funds reported combined fund balances of 17,926,535, an increase of $2,767,212 in comparison with the prior year. Approximately

52.82% of this amount ($ 9,459,376) constitutes unassigned fund balance, which is available for spending at the government’ s discretion. The remainder of the fund balance is either nonspendable, restricted, or committed, to indicate that it is 1) not in spendable form ($234, 925), 2) restricted for particular purposes ($3,401,601), or 3) committed for particular purposes ($4,830,633). The increase in governmental funds from fiscal year 2020- 21 to fiscal year 2021- 22, was due primarily to increased tax revenues attributed to the end of COVID-19 pandemic closures and business returning to above normal levels.

The general fund is the chief operating fund of the City of Solvang. At the end of the current fiscal year, the unassigned fund balance of the general fund was $ 9,459, 376, while total fund balance increased to $14,551,249. Impact Fees ended FY2021-2022 with a fund balance of $1.53 million, a decrease of approximately $69 thousand from FY 2021-2022. The decrease is a result of using more impact fee funds to fund projects around the City of Solvang. City Projects Fund ended FY 2021-2022 with a fund balance of $11 thousand, in increase of approximately $35 thousand from FY 2021- 2022. The increase was due to timing differences between incurring capital project expenditures and transfers received from respective funding sources. 194
Management’ s Discussion and Analysis
Proprietary Funds. The City of Solvang’ s proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail.

Unrestricted net position for the Water and Wastewater funds at the end of the year were 7,290,226 and $1,103,657 respectively. Total net position for Water increased by $214,974.

The Wastewater fund decreased its net position by $289,055. The Wastewater Division shows an operating deficit due to static revenues and increases in Salaries and Benefits and fuel expenses from sewer operations.

Transit operations unrestricted net position totaled $ 1,870,019 an increase of $109,003 from fiscal year 2020-21. Transit operations total net position increased slightly by 0.09% to end the fiscal year at $2,205, 969, primarily due to fare box revenues returning to normal levels. 195
Management’ s Discussion and Analysis
General Fund Budgetary Highlights
Original budget compared to final budget. There were a few budget adjustments greater than 50,000 during the fiscal year. Budget adjustments greater than $50,000 are listed below:

Expenditure Budget
Adjustments > $50k
RSI Schedule
Classification
Initial
Budget Final Budget Difference
Tourism/Marketing Expense Tourism $ 585,915 $ 920,915 $ 335,000 Custodial-Restrooms Public works $ 151,000 $ 300,000 $ 149,000 Total $ 484,000
Final budget compared to actual results. The most significant differences (greater than $100,000) between estimated revenues and actual revenues were as follows:

Revenue Source
Final Budgeted
Revenues
Actual
Revenues Difference
Transient Occupancy Tax $ 3,632,629 $ 6,031,568 $ 2,398,939 Sales Tax $ 1,419,000 $ 2,118,762 $ 699,762
Licenses and permits $ 95,000 $ 215, 497 $ 120, 497
Charges for services $ 721,147 $ 898,413 $ 177,266
Notable differences, between estimated expenditures and actual expenditures by function were as follows:

Expenditures
Final Budgeted
Expenditures
Actual
Expenditures Difference
General administration $ 1,362,403 $ 1,937,720 $ ( 575,317) Community Development $ 775,248 $ 779,590 $ ( 4,342)
Culture and Recreation $ 1,242,506 $ 1,096,221 $ 146,285 Public Works $ 2,473,467 $ 2,074,041 $ 399,426
Public Safety $ 2,262,852 $ 2,201,330 $ ( 61,522)
Most of these differences were due to a slight increase in expenses for City Employed staff and an increase in contracted services. The City was also a victim of a phishing attack which caused a net expenditure of $538, 000. The City reported the incident to law enforcement authorities, and the City received $250,000 in insurance proceeds for the loss after June 30, 2022.

Capital Asset and Debt Administration
Capital assets. The City of Solvang’ s investment in capital assets for its governmental and business-type activities as of June 30, 2022, amounts to $ 26,853,396 ( net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, park facilities, roads, highways, bridges, and the wastewater treatment plant. The investment in capital assets increased by 10.52%. Major capital asset events ( greater than $100K) during fiscal year 2021-22 include the following:

WWTP Upgrade Phase 1 (Completion) $ 2,963,826
S. Alisal Road Repavement Project $ 1,523,920
Additional information on the City of Solvang’ s capital assets can be found in Note 6 on pages 75- 76 of this report.
196
Management’ s Discussion and Analysis
Long-term Debt. Under insurance arrangements, the City is self-insured for the first $50,000 for each workers’ compensation claim, $ 20,000 for each general liability claim, and $ 5,000 per property damage claim. The statement of net position also shows no liability for 2022 for estimated claim obligations and has no current obligation for 2022. This liability was fully funded and paid in 2022, and there were no pending claims at the end of the fiscal year.

The City has a take or pay water purchase agreement with the Santa Ynez River Water Conservation District, Improvement District No. 1 (ID No.1), for State Water, where the City must make annual payments for the State Water whether or not water is delivered. ID No 1. has pledged its water sale revenue from Solvang for repayment of its long-term debt. Solvang has an ongoing commitment to buy water from ID No 1, but the bonded debt is that of ID No. 1 and not the City of Solvang. The agreement requires annual payments until 2035.

Additional information on the City’ s long- term debt can be found starting on page 77 of the notes to the financial statements
Economic Factors and Next Year’s Budget and Rates
The following economic factors currently affect the City of Solvang and were considered in developing the 2022- 24 two year fiscal budget:

In June 2022, the City Council adopted a General Fund budget with revenues greater than budgeted expenses. This was, in part, due to increased budgeted revenues of Transient Occupancy and Sales Taxes, both affected by a “ return to normal” tourism numbers due to the end of COVID- 19 closures.

In 2022, an annual increase in water and wastewater rates was approved and scheduled for each July from fiscal year 2022- 23 through fiscal year 2026- 2027. The additional funds generated by the increase are intended to support maintenance and capital replacement costs, as well as provide adequate funding of reserves.

As property values slowly increase, the taxable assessed value as a percentage of estimated actual value in property assessments increases. This contributes to the increase in City revenues.

The City is receiving lower interest revenues than were budgeted for from our investments in the State Wide Local Agency Investment Fund. Interest rates are on the incline currently, and this will be addressed during the budget process for FY 2023- 24.

Increases are expected in pension and other post-employment benefit costs. The City’s pension liabilities will continue to climb over the next 5-7 years as CalPERS adjusts their methodology and assumptions, which also increases employer contributions. Staff continue to review and evaluate pension costs and work with CalPERS on possible funding strategies.

The City of Solvang relies heavily on tourism, with over 1.5 million visitors annually, requiring daily services for residents and non-residents alike.
197
Management’ s Discussion and Analysis
Requests for Information
This financial report is designed to provide a general overview of the City of Solvang’ s finances for anyone with an interest in the government’ s finances. If you have questions about this report or need additional financial information, contact the City Manager at:

City of Solvang
1644 Oak Street
Solvang, California 93463
805) 688- 5575
198
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199
BASIC

FINANCIAL STATEMENTS
200
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201

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
202
City of Solvang
Statement of Net Position
June 30, 2022
Governmental
Activities
Business- Type
Activities Total
ASSETS
Current assets:

Cash and investments 18,071,540$ 8,142,617$ 26,214,157$ Taxes receivable 8,949 - 8,949
Accounts receivable 1,338,369 1,257,929 2,596,298
Due from other government 76,502 - 76,502
Lease receivable - 8,222 8,222
Interest receivable 29,805 14,621 44,426
Deposits - 633,087 633,087
Prepayments 211,137 1,986,974 2,198,111
Total current assets 19,736,302 12,043,450 31,779,752
Noncurrent assets:

Loans receivable 42,464 - 42,464
Lease receivable - 183,602 183,602
Capital assets:

Capital assets not being depreciated 2,778,427 425,953 3,204,380 Capital assets being depreciated, net 11,209,963 12,439,053 23,649,016 Total capital assets 13,988,390 12,865,006 26,853,396
Total noncurrent assets 14,030,854 13,048,608 27,079,462 Total assets 33,767,156 25,092,058 58,859,214

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 669,832 223,277 893,109
Deferred outflows - OPEB 212,033 70,678 282,711
Total deferred outflows of resources 881,865 293,955 1,175,820 Primary Government
See accompanying Notes to Basic Financial Statements. 203 Governmental
Activities
Business- Type
Activities Total

LIABILITIES
Current liabilities:

Accounts payable 481,056 214,046 695,102
Deposits 65,404 - 65,404
Unearned advances 28,007 - 28,007
Compensated absences, due within one year 60,000 30,000 90,000 Total current liabilities 634,467 244,046 878,513
Noncurrent liabilities:

Compensated absences, due in more than one year 116,212 59,536 175,748 Net other post employment benefit liability 1,046,572 348,857 1,395,429 Net pension liability 1,947,048 649,016 2,596,064
Total noncurrent liabilities 3,109,832 1,057,409 4,167,241 Total liabilities 3,744,299 1,301,455 5,045,754

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 2,001,672 667,224 2,668,896
Deferred inflows - OPEB 317,396 105,799 423,195
Deferred inflows - leases - 182,627 182,627
Total deferred inflows of resources 2,319,068 955,650 3,274,718

NET POSITION
Net investment in capital assets 13,988,390 12,865,006 26,853,396 Restricted for:

Highways and streets 754,008 - 754,008
Capital improvements and other 2,636,492 - 2,636,492
Total restricted 3,390,500 - 3,390,500
Unrestricted 11,206,764 10,263,902 21,470,666
Total net position 28,585,654$ 23,128,908$ 51,714,562$
Primary Government
204
City of Solvang
Statement of Activities
For the year ended June 30, 2022
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total City Government:

Governmental activities:

General government 2,911,369$ 605,809$ 859,572$ -$ 1,465,381$ Public safety 2,189,633 35,670 - - 35,670
Culture and recreation 1,221,471 115,306 200 - 115,506
Community development 805,316 339,214 81,225 - 420,439
Public works 2,580,297 286,038 1,301,912 139,958 1,727,908 Total governmental activities 9,708,086 1,382,037 2,242,909 139,958 3,764,904 Business- type activities:

Water 5,216,176 5,231,784 - 166,715 5,398,499
Wastewater 2,248,410 1,565,759 407,084 - 1,972,843
Transit 1,099,939 48,775 1,063,095 - 1,111,870
Total business- type activities 8,564,525 6,846,318 1,470,179 166,715 8,483,212 Total primary government 18,272,611$ 8,228,355$ 3,713,088$ 306,673$ 12,248,116$ General Revenues:

Taxes:

Property taxes
Sales taxes
Transient occupancy taxes
Other taxes
Total taxes
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements. 205 Governmental Business- Type
Activities Activities Total
1,445,988)$ -$ ( 1,445,988)$
2,153,963) - ( 2,153,963)
1,105,965) - ( 1,105,965)
384,877) - ( 384,877)
852,389) - ( 852,389)
5,943,182) - ( 5,943,182)
182,323 182,323
275,567) ( 275,567)
11,931 11,931
81,313) ( 81,313)
5,943,182) ( 81,313) (6,024,495)
1,623,747 - 1,623,747
2,118,762 - 2,118,762
6,031,568 - 6,031,568
288,349 - 288,349
10,062,426 - 10,062,426
145,251) ( 48,721) ( 193,972)
103,903 - 103,903
57,968) 57,968 -
9,963,110 9,247 9,972,357
4,019,928 ( 72,066) 3,947,862
24,565,726 23,200,974 47,766,700
28,585,654$ 23,128,908$ 51,714,562$
Primary Government
and Changes in Net Position
Net (Expense) Revenue
206
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207
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
208
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209

GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Impact Fee Special Revenue Fund accounts for impact fees paid by developers restricted for various capital improvement projects.

City Projects Capital Projects Fund accounts for monies committed and restricted for City capital projects.
210
City of Solvang
Balance Sheet
Governmental Funds
June 30, 2022
General Fund
Impact Fee
Special
Revenue Fund
City Projects
Capital
Projects Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and investments 13,542,220$ 1,510, 133$ 32,344$ 1,711, 004$ 16,795,701$ Receivables:

Taxes receivable 8,949 - - - 8,949
Accounts receivable 1,215,271 - - 123,098 1,338,369
Due from other government 76,502 - - - 76,502
Interest receivable 19,648 2,698 - 5,534 27,880
Due from other funds 20,658 - - - 20,658
Prepaid items 211,137 - - - 211,137
Loans and notes receivables 23,788 18,676 - - 42,464
Total assets 15,118,173$ 1,531,507$ 32,344$ 1,839,636$ 18,521,660$

LIABILITIES AND

FUND BALANCES
Liabilities:

Accounts payable 473,513$ -$ 585$ 6,958$ 481,056$
Due to other funds - - 20,658 - 20,658
Deposits payable 65,404 - - - 65,404
Unearned revenues 28,007 - - - 28,007
Total liabilities 566,924 - 21,243 6,958 595,125
Fund Balances:

Nonspendable ( Prepaid items and loans) 234,925 - - - 234,925 Restricted for:

Recycling 16,947 - - - 16,947
Highways and streets - 754, 008 11,101 1,832,678 2,597,787 Park improvements - 45,634 - - 45,634
Drainage - 279, 300 - - 279, 300
Affordable housing - 452, 565 - - 452, 565
Tennis facilities 9,368 - - - 9,368
Total restricted 26,315 1,531,507 11,101 1,832,678 3,401,601 Committed to:

Emergencies 4,830,633 - - - 4,830,633
Total committed 4,830,633 - - - 4,830,633
Unassigned 9,459,376 - - - 9,459,376
Total fund balances 14,551,249 1,531,507 11,101 1,832,678 17,926,535 Total liabilities and fund balances 15,118,173$ 1,531, 507$ 32,344$ 1,839, 636$ 18,521,660$ Major Funds
See accompanying Notes to Basic Financial Statements. 211 Total Fund Balances - Total Governmental Funds 17,926,535$ Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds 13,727,443
The assets and liabilities of the internal service fund are included in the governmental activities in the statement of net position 1,538,711
Pension actuarial deferrals and certain employer contributions are reported as deferred inflows and outflows of resources and are, therefore, not reported in the funds ( 1,331,840) Net pension liability (NPL) obligations are not due and payable in the current period and are not reported in the funds ( 1,947,048)
OPEB actuarial deferrals and certain employer contributions are reported as deferred inflows and outflows of resources and are, therefore, not reported in the funds ( 105,363) The net OPEB liability is not due and payable in the current period and is therefore not reported in the funds ( 1,046,572)
Some liabilities, including compensated absences, and claims are not due and payable in the current period and are therefore not reported in the funds ( 176,212) Net Position of Governmental Activities 28,585,654$
Amounts reported for governmental activities in the statement of net position are different City of Solvang
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
See accompanying Notes to Basic Financial Statements. 212 Statement of Revenues, Expenditures and Changes in Fund Balances General Fund
Impact Fee
Special
Revenue Fund
City Projects
Capital
Projects Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
REVENUES:

Property taxes 1,623,747$ -$ -$ -$ 1,623,747$
Sales taxes 2,118,762 - - - 2,118,762
Transient occupancy taxes 6,031,568 - - - 6,031,568
Other taxes 288,349 - - - 288,349
Special assessments - - - 218,450 218,450
Licenses and permits 215,497 - - - 215,497
Fines and forfeits 475 - - - 475
Intergovernmental 961,339 - - 1,421,327 2,382,666
Interest ( 107,815) 6,855 ( 5,250) ( 8,761) (114,971)
Charges for services 898,413 42,633 - 6,570 947,616
Miscellaneous 104,103 - - - 104,103
Total revenues 12,134,438 49,488 ( 5,250) 1,637,586 13,816,262 EXPENDITURES:

Current:

General government 3,019,870 - - - 3,019,870
Public safety 2,201,330 - - - 2,201,330
Culture and recreation 1,096,220 - - - 1,096, 220
Community development 779,590 - - - 779,590
Public works 1,975,593 - - 166,573 2,142,166
Capital outlay 98,449 5,000 1,745,069 - 1,848,518
Total expenditures 9,171, 052 5,000 1,745,069 166, 573 11,087,694 REVENUES OVER ( UNDER) EXPENDITURES 2,963,386 44,488 ( 1,750,319) 1,471,013 2,728,568 OTHER FINANCING SOURCES ( USES):

Transfers in 199,816 - 1,785,243 - 1,985,059
Transfers out ( 275,881) ( 113,283) - ( 1,557,251) ( 1,946,415) Total other financing sources ( uses)( 76,065) ( 113, 283) 1,785,243 ( 1,557,251) 38,644 Net change in fund balances 2,887,321 ( 68,795) 34,924 ( 86,238) 2,767,212 FUND BALANCES:

Beginning of year 11,663,928 1,600,302 ( 23,823) 1,918,916 15,159,323 End of year 14,551,249$ 1,531,507$ 11,101$ 1,832,678$ 17,926,535$ City of Solvang
Governmental Funds
For the year ended June 30, 2022
Major Funds
See accompanying Notes to Basic Financial Statements. 213 Net Change in Fund Balances - Total Governmental Funds 2,767,212$ Governmental funds report capital outlays as expenditures, however, in the statement of activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays of $2,031,726 exceed depreciation 768,868) in the current period. 1,262,858
Decreases in liabilities for other post employment benefits (OPEB) and other related amounts do not provide current financial resources and are therefore not reported in the governmental fund statements. 125,538
Long-term notes receivable are not current financial resources and are deferred in the funds ( 19,556) Changes in the net pension liability and related deferred amounts do not use or provide current financial resources and are reported in the statement of activities, but not in the governmental fund statements.( 174,658)
Some expenses in the statement of activities for noncurrent liabilities such as long-term compensated absences do not require the use of or provide current financial resources and, therefore, are not reported as expenditures in the governmental funds ( 35,807) Internal service funds are consolidated by charging additional amounts or reducing charges to participating governmental activities to completely cover the internal service fund's costs 94,341 Change in Net Position of Governmental Activities 4,019,928$ Amounts reported for governmental activities in the Statement of Activities were different City of Solvang
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2022
See accompanying Notes to Basic Financial Statements. 214 This page intentionally left blank
215

PROPRIETARY FUND FINANCIAL STATEMENTS
Water Service Enterprise Fund accounts for the activities associated with providing water services.

Wastewater Enterprise Fund accounts for the wastewater treatment plant and wastewater pumping stations and collection systems.

Transit Enterprise Fund is used to account for transit operations.

Vehicle/Equipment Replacement Internal Service Fund is used to account for replacement costs of City vehicles and equipment and accumulate resources for replacement assets. 216
City of Solvang
Statement of Net Position
Proprietary Funds
June 30, 2022
Water Wastewater
ASSETS
Current assets:

Cash and investments 4,738,625$ 1,811,859$
Accounts receivable 676,192 213,360
Interest receivable 8,353 3,514
Lease receivable 8,222 -
Deposits 632,101 836
Prepayments 1,916,425 70,418
Total current assets 7,979,918 2,099,987
Noncurrent assets:

Lease receivable 183,602 -
Capital assets:

Capital assets not being depreciated 269,426 156,527
Capital assets being depreciated 5,151,846 6,951,257
Total capital assets 5,421,272 7,107,784
Total noncurrent assets 5,604,874 7,107,784
Total assets 13,584,792 9,207,771

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 89,311 133,966
Deferred outflows - OPEB 28,271 42,407
Total deferred outflows of resources 117,582 176,373

LIABILITIES
Current liabilities:

Accounts payable and other 58,780 61,740
Compensated absences - due within one year 15,000 15,000 Total current liabilities 73,780 76,740
Noncurrent liabilities:

Compensated absences - due in more than one year 26,110 33,426 Net other postemployment benefit liability 139,543 209,314 Net pension liability 259,606 389,410
Total noncurrent liabilities 425,259 632,150
Total liabilities 499,039 708,890

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 266,890 400,334
Deferred inflows - OPEB 42,320 63,479
Deferred inflows - leases 182,627 -
Total deferred inflows of resources 491,837 463,813

NET POSITION
Net investment in capital assets 5,421,272 7,107,784
Unrestricted 7,290,226 1,103,657
Total net position 12,711,498$ 8,211,441$
Enterprise Funds
See accompanying Notes to Basic Financial Statements. 217 Vehicle/ Equipment
Replacement
Internal Service
Transit Total Fund
1,592,133$ 8,142,617$ 1,275,839$
368,377 1,257,929 -
2,754 14,621 1,925
8,222 -
150 633,087 -
131 1,986,974 -
1,963,545 12,043,450 1,277,764
183,602 -
425,953 -
335,950 12,439,053 260,947
335,950 12,865,006 260,947
335,950 13,048,608 260,947
2,299,495 25,092,058 1,538,711
223,277 -
70,678 -
293,955 -
93,526 214,046 -
30,000 -
93,526 244,046 -
59,536 -
348,857 -
649,016 -
1,057,409 -
93,526 1,301,455 -
667,224 -
105,799 -
182,627 -
955,650 -
335,950 12,865,006 260,947
1,870,019 10,263,902 1,277,764
2,205,969$ 23,128,908$ 1,538,711$
Enterprise Funds
218
City of Solvang
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2022
Water Wastewater
OPERATING REVENUES:

Sales of water 5,202,224$ -$
Service fees - 1,556,024
Miscellaneous 29,560 9,735
Total operating revenues 5,231,784 1,565,759
OPERATING EXPENSES:

Salaries and benefits 602,813 810,588
Purchased power 159,384 205,019
Transit operator - -
Services and supplies 1,131,168 748,757
Joint operating expenses 2,963,189 -
Depreciation expense 360,249 484,046
Total operating expenses 5,216,803 2,248,410
OPERATING INCOME (LOSS) 14,981 ( 682,651)
NONOPERATING REVENUES ( EXPENSES):

Grant revenue - 407,084
Operating subsidies - -
Gain on sale of capital assets 627 -
Interest and investment revenue ( 22,317) ( 13,488)
Total nonoperating revenues ( expenses)( 21,690) 393,596

INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS ( 6,709) ( 289,055)
Transfers in 54,968 -
Transfers out - -
Capital contributions 166,715 -
Net contributions and transfers 221,683 -
Change in net position 214,974 ( 289,055)
NET POSITION:

Beginning of year 12,496,524 8,500,496
End of year 12,711,498$ 8,211,441$
Enterprise Funds
See accompanying Notes to Basic Financial Statements. 219 Vehicle/ Equipment
Replacement
Internal Service
Transit Total Fund
5,202,224$ -$
48,775 1,604,799 216,811
39,295 -
48,775 6,846,318 216,811
1,413,401 -
364,403 -
668,750 668,750 -
296,057 2,175,982 -
2,963,189 -
135,132 979,427 56,777
1,099,939 8,565,152 56,777
1,051,164) ( 1,718,834) 160,034
407,084 -
1,063,095 1,063,095 -
627 -
12,916) ( 48,721) ( 10,724)
1,050,179 1,422,085 ( 10,724)
985) ( 296,749) 149,310
3,000 57,968 -
96,612)
166,715 41,643
3,000 224,683 ( 54,969)
2,015 ( 72,066) 94,341
2,203,954 23,200,974 1,444,370
2,205,969$ 23,128,908$ 1,538,711$
Enterprise Funds
220
City of Solvang
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2022
Water Wastewater
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 5,170,750$ 1,722,970$
Payments to suppliers ( 3,173,452) ( 1,438,529)
Payments to other funds for services ( 278,301) ( 173,145) Payments from other funds for services - -
Payments for employees and benefits ( 619,965) ( 875,499) Net cash provided by (used in) operating activities 1,099,032 ( 764,203) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in 54,968 -
Transfers out - -
Grants and operating subsidies - 407,084
Net cash provided by (used in) noncapital financing activities 54,968 407,084 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets 627 -
Capital contributions 166,715 -
Purchases of capital assets ( 138,015) ( 2,122,687)
Net cash provided by (used in) capital and related financing activities 29,327 ( 2,122,687) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment loss ( 27,886) ( 14,286)
Net cash provided by (used in) investing activities ( 27,886) ( 14,286) NET INCREASE ( DECREASE) IN CASH AND CASH EQUIVALENTS 1,155,441 ( 2,494,092) CASH AND INVESTMENTS - Beginning of year 3,583,184 4,305,951 CASH AND INVESTMENTS - End of year 4,738,625$ 1,811,859$

RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income (loss) 14,981$ ( 682,651)$
Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 360,249 484,046
Changes in assets and liabilities:

Decrease ( increase) in receivables and related amounts ( 61,034) 157,211 Decrease ( increase) in prepayments 846,010 ( 61,650)
Increase ( decrease) in accounts payable ( 40,075) ( 591,225) Increase ( decrease) in other liabilities ( 3,947) ( 5,023) Increase ( decrease) in compensated absences ( 23,702) ( 74,734) Increase ( decrease) in net OPEB liability and related deferred amounts ( 16,738) ( 25,108) Increase ( decrease) in net pension liability and related deferred amounts 23,288 34,931 Total adjustments 1,084,051 ( 81,552)
Net cash provided by operating activities 1,099,032$ ( 764,203)$ Enterprise Funds
See accompanying Notes to Basic Financial Statements. 221 Vehicle/ Equipment
Replacement
Internal Service
Transit Total Fund
48,775$ 6,942,495$ -$
955,049) ( 5,567,030) -
58,601) ( 510,047) -
216,811
1,495,464) -
964,875) ( 630,046) 216,811
3,000 57,968 -
96,612)
987,551 1,394,635 -
990,551 1,452,603 ( 96,612)
627 -
166,715 -
28,144) (2,288,846) -
28,144) (2,121,504) -
14,440) ( 56,612) ( 11,228)
14,440) ( 56,612) ( 11,228)
16,908) (1,355,559) 108,971
1,609,041 9,498,176 1,166,868
1,592,133$ 8,142,617$ 1,275,839$
1,051,164)$ ( 1,718,834)$ 160,034$
135,132 979,427 56,777
96,177 -
244 784,604 -
49,087) ( 680,387) -
8,970) -
98,436) -
41,846) -
58,219 -
86,289 1,088,788 56,777
964,875)$ ( 630,046)$ 216,811$
Enterprise Funds
222
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223

FIDUCIARY FUND FINANCIAL STATEMENTS
Custodial Fund accounts for monies collected and held for the Santa Ynez Business Improvement District. 224
City of Solvang
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
Custodial
Fund
ASSETS
Cash and investments 42,098$
Assessments receivable 59,230
Total assets 101,328

LIABILITIES
Accounts payable -
Total liabilities -

NET POSITION
Restricted for tourism 101,328
Total net position 101,328$
See accompanying Notes to Basic Financial Statements. 225 City of Solvang
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022
Custodial
Fund
ADDITIONS:

Special assessments 573,228$
Total additions 573,228
DEDUCTIONS:

Pass-through payments 558,788
Total Deductions 558,788
Change in net position 14,440
NET POSITION:

Beginning of year 86,888
End of year 101,328$
See accompanying Notes to Basic Financial Statements. 226 This page intentionally left blank
227

NOTES TO BASIC

FINANCIAL STATEMENTS
228
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229
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Solvang, California ( City) have been prepared in conformity with generally accepted accounting principles ( GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City of Solvang is a municipal corporation governed by an elected five-member City Council. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable.

The Solvang Joint Powers Financing Authority is a legally separate corporate entity for which the City is financially accountable and is governed by the elected City Council. The Authority was formed to provide a method of financing public improvements. The financial activities of the Authority are blended with those of the City and are reported in the City's governmental funds, and as capital assets of the City and debt obligations of the City.

Separate financial statements are not available for the Solvang Joint Powers Financing Authority.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with its own self-balancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City’s Government- Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column.

The government- wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
230
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements, Continued
These financial statements are presented on an “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’ s assets, deferred inflows/ outflows of resources, and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liabilities are incurred.

Certain types of transactions reported as program revenues for the City are reported in three categories:

Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:

Due to/ from other funds
Transfers in/ out
The City applies all applicable GASB pronouncements including all NCGA Statements and Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that meet specific qualifications.

All governmental funds are accounted for on a spending or “ current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases ( revenues and other financing sources) and decreases ( expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
231
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, Continued
The City reports the following funds as major governmental funds of the City.

The General Fund is the government’ s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Impact Fee Fund is a special revenue fund used to account for impact fees restricted by law to use only for the specific purpose of the fee.

The City Capital Projects Fund is a capital projects fund used to account for monies that are restricted or committed for capital projects.

Revenues are recorded when received in cash, except that revenues subject to accrual ( generally those received 60 days after year-end) are recognized when due. The primary revenue sources that have been treated as susceptible to accrual by the City are property taxes, taxpayer-assessed tax revenues ( sales taxes, transient occupancy taxes, franchise taxes, etc.), grant revenues and earnings on investments.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

A column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the GovernmentWide Financial Statements.

Proprietary funds are accounted for using the “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position present increases ( revenues) and decreases ( expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which a liability is incurred.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
232
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, Continued
The City reports the following major proprietary funds:

The Water Enterprise Fund accounts for the operations of the City's water treatment and distribution system.

The Wastewater Enterprise Fund accounts for the operation of the City's wastewater treatment plant and collection facilities.

The Transit Enterprise Fund accounts for the operation of the City’ s transit activities.

Internal service fund balances and activities have been combined with governmental activities in the Government-Wide Financial Statements, and are comprised of the following fund:

Vehicle/Equipment Replacement Fund accounts for charges to the City departments for funding and acquisition of replacement vehicles and equipment.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position. The City has one type of fiduciary fund, a custodial fund. Custodial funds are used to account for fiduciary activities not required to be reported in an investment trust fund, pension trust fund, or private-purpose trust fund.

Fiduciary funds are accounted for using the “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Fiduciary Net Position. The Statement of Changes in Fiduciary Net Position present increases and decreases in total fiduciary net position The City reported the following custodial fund:

Santa Ynez Valley Tourism Business Improvement District Custodial Fund – accounts for monies held by the City for the Santa Ynez Valley Tourism Business Improvement District.

C. Cash, Cash Equivalents, and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures ( Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:

Interest Rate Risk
Credit Risk
o Overall
o Custodial Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures. 233
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED C. Cash, Cash Equivalents, and Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’ s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City does not have any investments that are measured using Level 3 inputs.

The City participates in an investment pool managed by the State of California entitled Local Agency Investment Fund ( LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset-Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and AssetBacked Securities are subject to market risk as to the change in interest rates.

Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City and are presented as “ Cash and Investments” in the accompanying Basic Financial Statements.

For the purpose of the statement of cash flows, the City considers all pooled cash and investments consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments ( consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

D. Receivables and Payables
Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end of the fiscal year are referred to as either “ due to/ from other funds” ( i.e., the current portion of interfund loans) or “advances to/ from other funds” ( i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “ due to/ from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “ internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources.

All trade and property tax receivables are not shown net of an allowance for uncollectible amounts. 234
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED D. Receivables and Payables, Continued
Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of market value, be levied by only the County, and be shared by applicable jurisdictions. The County of Santa Barbara collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voterapproved debt. Property taxes are due on November 1 and March 1, and become delinquent on December 10 and April 10. The City receives property taxes pursuant to an arrangement with the County known as the “ Teeter Plan”. Under the plan, the County assumes responsibility for the collection of delinquent taxes and pays the full allocation to the City. The City recognizes property tax revenues in the fiscal year in which they are due to the City.

E. Leases - Lessor
The City is a lessor for a noncancellable lease of land. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines ( 1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

The City uses its estimated incremental borrowing rate as the discount rate for leases.

The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

E. Inventories and Prepaid Items
All inventories are valued at cost using the first-in/ first-out ( FIFO) method. Inventories of governmental funds are recorded as expenditures when used or consumed.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government- wide and fund financial statements. Such prepayments are accounted for using the consumption method in the governmental funds. 235
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED F. Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets ( e.g., roads, bridges, sidewalks, and similar items). They are reported in the applicable governmental- type or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($ 100,000 for infrastructure type assets) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. Under the GASB 34 Implementation Rules, the City is a Phase 3 entity and was not required to record infrastructure assets existing or acquired prior to July 1, 2002 at the date these new financial reporting standards were implemented. The City has not recorded such assets. The costs of normal maintenance and repairs that do not add to the value of asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of the business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City are depreciated using the straight line method over the following estimated useful lives:

G. Compensated Absences
It is the government’ s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is a liability for a portion of unpaid accumulated sick leave since the City does have a policy to pay certain amounts when employees separate from service with the City. All vacation pay and applicable sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

H. Long-term Obligations
In the government-wide financial statements, and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position.

Assets Years
Buildings and improvements 7-50
Public domain infrastructure 50
System infrastructure 50
Vehicles and equipment 5-10
236
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED I. Net Position
In the Government- Wide and Proprietary Fund Financial Statements, net position is classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

Restricted – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of governments.

Unrestricted – This amount is all net position that do not meet the definition of “ net investment in capital assets” or “restricted net position” as defined above.

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.

J. Fund Balances – Governmental Funds
Fund balances for governmental funds are reported in classifications based primarily on the extent to which the City is bound to honor constraints about the specific purposes for which amounts in those funds can be spent. These classifications include ( 1) nonspendable, ( 2) restricted, ( 3) committed, ( 4) assigned and (5) unassigned amounts.

Nonspendable amounts generally are items not expected to be converted into cash such as inventories and prepaid items.

Restricted amounts include those where constraints placed on the uses of the resources are externally imposed by grantors, contributors, other governments or by laws or regulations.

Committed amounts are those that can only be used for a specific purpose as determined by the City Council. Such committed amounts may be redeployed for other uses only by the direction of the City Council. Commitments are established, modified, or rescinded by the City Council adopting such action by resolution. The City’s reported committed fund balance for emergencies was established by City resolution and can only be accessed during a significant decrease in revenues as defined per the City’s policy.

Assigned amounts are fund balance amounts constrained by the City’s intent to be used for specific purposes as determined by the City Manager or City Administrative Services Director, Unassigned fund balance amounts are the residual amounts reported in only the general fund.

When expenditures are incurred for which both restricted and unrestricted ( committed, assigned or unassigned) amounts are available, the City considers restricted amounts to have been spent first. When expenditures are incurred for which any class of unrestricted fund balance could be used, the City considers committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts.
237
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED K. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the State of California Public Employees Retirement System (PERS) and additions to or deductions from the PERS fiduciary net position have been determined on the same basis as they are reported by the PERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

L. Postemployment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Retiree Benefits Plan and additions to/ deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. Investments are stated at fair value. For this purpose, the City’s Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.

M. Use of Estimates
The preparation of the Basic Financial Statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

N. New Pronouncements
In 2022, the City adopted the new accounting standards to conform to the following Governmental Accounting Standards Board Statements:

GASB Statement No. 87, Leases – The objective of this statement is to recognize in the financial statements certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. The City recognized a lease receivable and related deferred inflow of resources for a cell tower lease.
238
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED N. New Pronouncements, Continued
GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period – The objective this statement is to (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement establishes accounting requirements for interest costs incurred before the end of a construction period. This Statement requires that interest cost incurred before the end of a construction period be recognized as expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. There was no impact on net position as a result of implementation of this statement.

GASB Statement No. 92, Omnibus – The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about leases, intra-entity transfers between primary government and pension or OPEB plans, other pension plan reporting, fiduciary activities relating to postemployment benefit arrangements, asset retirement obligations, reporting for public entity risk pools, fair value measurement, and derivative instruments.

The requirements of this statement did not have an impact on the City’s net position for the year ended June 30, 2022.

GASB Statement No. 99, Omnibus 2022 – The primary objectives of this statement are to enhance the comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during the implementation and application of certain GASB Statements. The requirements of this statement did not apply for the current fiscal year.

2. CASH AND INVESTMENTS
A. Summary of Cash and Investments
Governmental Business- Type Fiduciary
Activities Activities Funds Total
Cash and investments 18,071,540$ 8,142,617$ 42,098$ 26,256,255$ Total cash and investments 18,071,540$ 8,142,617$ 42,098$ 26,256,255$ Government- Wide
Statement of Net Position
239
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, CONTINUED
Deposits and investments at June 30, 2022 consisted of the following:

B. Deposits
At June 30, 2022, the carrying amount of the City’s cash and cash equivalents were comprised of the general checking account which had a book balance of $3,210,506 and petty cash of $550. The bank balance in the City’s general checking was $3,772,531 fully insured and collateralized with securities held by the pledging financial institutions in the City’s name as discussed below. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures or trust agreements. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents or held in trust is credited directly to the related fund.

City Treasury:

Deposits:

Cash on hand 550$
Deposits with financial institution 3,210,506
Total cash on hand and deposits 3,211, 056
Investments:

Local Agency Investment Fund (LAIF) 23,045,199
Total investments 23,045,199
Total cash and investments 26,256,255$
240
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, CONTINUED
C. Investments
The City is authorized by State statutes to invest in the following:

U.S. Treasury and U.S. Agency Issues
Certificates of Deposit
California Local Agency Investment Fund (LAIF)
Government Bonds and Notes
Passbook Savings
Bankers Acceptances
Commercial Paper (Corporations)
Medium-Term Corporate Notes
Repurchase Agreements
Mutual Funds
The City is a voluntary participant in the Local Agency Investment Fund ( LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’ s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes – are debt securities ( other than asset-backed securities) whose cash flow characteristics ( coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/ or have embedded forwards or options.

Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages ( such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2022, the City had $23,045,199 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of 0.987125414 was used to calculate the fair value of the investments in LAIF.

D. Risk Disclosures
Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, an investment with a longer maturity date has a greater sensitivity of its fair value to be subject to changes in market interest rates. In accordance with the City’s investment policy, exposure to interest rate risk is mitigated by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
241
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, CONTINUED
D. Risk Disclosures, Continued
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits the City's investment portfolio to maturities of five years or less.

Credit Risk - State law limits investments in various securities to certain level of risk ratings issued by nationally recognized statistical rating organizations. It is the City's policy to comply with State law as regards securities ratings. The City’s investment in the State Investment Pool is unrated.

Custodial Credit Risk - For an investment, custodial credit risk is the risk that, in the event of the failure of a counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policy specifies that securities are to be held by a third party, other than the counterparty, in the City's name, whenever possible. The investment in the LAIF is not subject to custodial credit risk.

E. Investment Valuation
Investments are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board ( GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’ s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs, such bond valued by a pricing service that uses matrix pricing, pay-fixed receive-variable interest rate swap based on the Long Interbank Offered Rate (LIBOR) swap rate, three-year option on exchange-traded shares, or valuation multiple; Level 3 inputs are significant unobservable inputs. The City’s investments were not subject to levelling disclosure.

Investment Type Total Less than 1 year
More than 1 year
less than 5 years
Investments:

Local Agency Investment Fund 23,045,199$ 23,045,199$ -$ Total 23,045,199$ 23,045,199$ -$
Investment Maturities (in years)
242
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

3. INTERFUND TRANSACTIONS
The composition of interfund transfers for the year ended June 30, 2022 is as follows:

Transfers of $1,785,243 to City Capital Projects Fund were to fund various street and other capital project expenditures. Remaining transfers were to fund on-going street, sewer, and transportation activities.

The composition of due to and due from other funds as of June 30, 2022 is as follows:

4. LOANS AND NOTES RECEIVABLES
The notes receivable as of June 30, 2022, comprised of a development note receivable of $18,676 and $23,788 in micro loans to 16 local businesses to help with covering expenses for those businesses. Loans receivable as of June 30, 2022 was $42,464.

5. LEASES RECEIVABLES
In implementing GASB Statement No. 87 – Leases, the City recognized lease receivables and deferred inflows of resources for the leasing of attachment space for cellular communications. In fiscal year ended June 30, 2022, the City recognized $16,234 in revenues for applicable leases.

City Cell Tower – The City entered into an agreement with a telecommunications company in 1993 to lease space on a telecommunications tower. The lease term is 30 years, made up of an initial 10-year term plus four 5-year options. The City considers each optional term to likely be exercised by the lessee. The monthly payments as of July 1, 2021 were $1,739, and increases annually by 3%. The City used an annual incremental borrowing rate of 7.25%, based on financing quotation. The lease receivable as of June 30, 2022 was 191,824, and related deferred inflow of resources as of June 30, 2022 was $182,627.

City Wastewater Transit
General Projects Enterprise Enterprise Total
Transfers out: Fund Fund Fund Fund Transfers
General Fund $ - $ 275,881 $ - $ - $ 275,881
Impact Fee Fund - 113,283 - - 113, 283
Non-Major Governmental Funds 158,172 1,396, 079 - 3,000 1,557, 251 Internal Service Fund 41,644 - 54,968 - 96,612
Totals $ 199, 816 $ 1,785, 243 $ 54,968 $ 3,000 $ 2,043, 027 Transfers in
Due to General Fund
City Projects Fund $ 20,658
Totals $ 20,658
243
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

5. LEASES RECEIVABLES, CONTINUED
Future minimum rental payments are as follows:

6. CAPITAL ASSETS
Capital asset activity relating to governmental activities for the year ended June 30, 2022 was as follows:

Year Ending
June 30, Principal Interest Total
2023 8,222$ 13,643$ 21,865$
2024 9,516 13,005 22,521
2025 10,928 12,269 23,197
2026 12,466 11,426 23,892
2027 14,142 10,468 24,610
2028- 2032 101,443 33,132 134, 575
2033- 2034 35,107 1,717 36,824
Total 191,824$ 95,660$ 287, 484$
Current 8,222$ 13,643$ 21,865$
Noncurrent 183,602 82,017 265, 619
Total 191,824$ 95,660$ 287, 484$
Beginning Decreases/ Ending
Governmental activities: Balance Increases Reclassification Balance Capital assets, not being depreciated
Land $ 2,721,866 $ - $ - $ 2,721, 866
Construction in progress 40,174 56,561 ( 40,174) 56,561 Total capital assets, not being depreciated 2,762, 040 56,561 ( 40,174) 2,778,427 Capital assets, being depreciated:

Buildings 3,402,544 - - 3,402, 544
Machinery and equipment 797, 455 - - 797,455
Internal service fund – vehicles/ equipment 948, 070 41,643 - 989, 713 Improvements 6,646, 580 126,025 - 6,772, 605
Infrastructure- street system 10,458,061 1,889,344 - 12,347,405 Total capital assets being depreciated 22,252,710 2,057,012 - 24,309,722 Less accumulated depreciation for:

Buildings ( 1,943, 874) ( 76,169) - ( 2,020, 043)
Machinery and equipment ( 713,947) ( 14,055) - ( 728, 002) Internal service fund ( 671, 989) ( 56,777) - ( 728, 766) Improvements ( 3,845, 762) ( 186, 313) - ( 4,032, 075)
Infrastructure- street system ( 5,098,512) ( 492, 361) - ( 5,590, 873) Total accumulated depreciation ( 12,274, 084) ( 825,675) - ( 13,099, 759) Total capital assets, being depreciated, net 9,978,626 1,231,337 - 11,209,963 Governmental activities capital assets, net $ 12,740,666 $ 1,287,898 $ ( 40,174) $ 13,988,390 244
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

6. CAPITAL ASSETS, CONTINUED
Capital asset activity relating to business-type activities for the year ended June 30, 2022 was as follows:

Depreciation and amortization expense was charged to functions/ programs of the City as follows:

Beginning Decreases/ Ending
Business- type activities: Balance Increases Reclassification Balance Capital assets, not being depreciated
Land 191,208$ -$ -$ $ 191, 208
Construction in progress 1,025,155 2,244, 546 ( 3,034, 956) 234, 745 Total capital assets, not being depreciated 1,216,363 2,244, 546 ( 3,034, 956) 425, 953 Capital assets, being depreciated:

Buildings and bus stop facilities 8,384,276 - - 8,384, 276 Distribution and collection systems 11,617,871 43,910 - 11,661, 781 Infrastructure 6,228,998 2,963, 826 - 9,192, 824
Vehicles 894,649 54,968 - 949, 617
Equipment 2,058, 822 16,552 ( 14,037) 2,061, 337
Total capital assets being depreciated 29,184,616 3,079,256 ( 14,037) 32,249, 835 Less accumulated depreciation for:

Buildings ( 7,022,489) ( 149, 888) - ( 7,172, 377)
Distribution and collection systems ( 7,818,033) ( 346,393) - ( 8,164,426) Infrastructure ( 2,093,976) ( 276,892) - ( 2,370,868)
Vehicles ( 607,340) ( 120,006) - ( 727,346)
Equipment ( 1,303,554) ( 86,248) 14,037 ( 1,375, 765)
Total accumulated depreciation ( 18,845,392) ( 979,427) 14,037 ( 19,810,782) Total capital assets, being depreciated, net 10,339,224 2,099,829 - 12, 439, 053 Business- type activities capital assets, net 11,555,587$ 4,344,375$ ( 3,034, 956)$ $ 12,865,006 Governmental activities:

General government 67,450$
Public safety 6,250
Culture and recreation 99,544
Infrastructure streets 595,654
Vehicles- internal service fund 56,777
Total depreciation expense-governmental activities 825,675$ Business-type activities:

Water 360,249$
Wastewater 484,046
Transit 135,132
Total depreciation expense- business- type activities 979,427$ 245
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

7. LONG-TERM OBLIGATIONS
Long-term liability activity for the 2022 fiscal year was as follows:

The general fund is typically used to liquidate the liability for compensated absences applicable to the City’ s governmental activities.

8. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City carries insurance. The City is a member of the California Joint Powers Insurance Authority (California JPIA). The California JPIA provides general liability insurance to the City with a $50 million per occurrence and $50 million per year aggregate limit. The City also participates in the Insurance Authority’ s workers compensation insurance program. The risk of loss is transferred to the California JPIA. The City is subject to retrospective premium adjustments under the arrangement.

The uninsured risk retained by the City is $50,000 per incident for workers compensation claims, $20,000 per incident for general liability claims, and $5,000 per property damage claim. The Insurance Authority purchases commercial insurance for claims in excess of its deductible amounts which is $5 million for liability and $500,000 for workers compensation. Insurance transactions are accounted for in the general fund. Liabilities of the City are reported in the statement of net assets for the governmental activities when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends ( including frequency and amount of payouts), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. Settlements have not exceeded coverage for each of the past three fiscal years. There were no changes in the balances of claims liabilities during the past two years.

Due in
Beginning Ending Due Within More Than
Balance Additions Reductions Balance One Year One Year
Governmental
Activities:

Compensated absences $ 140,405 $ 95,807 $ ( 60,000) $ 176, 212 $ 60,000 $ 116, 212 Total $ 140, 405 $ 95,807 $ ( 60,000) $ 176, 212 $ 60,000 $ 116, 212 Business- type
Activities:

Compensated absences $ 187,972 $ ( 68,436) $ ( 30,000) $ 89,536 $ 30,000 $ 59,536 Total $ 187,972 $ ( 68,436) $ ( 30,000) $ 89,536 $ 30,000 $ 59,536 246
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

9. CONTINGENCIES AND COMMITMENTS
Litigation. The City is involved in litigation incurred in the normal course of conducting City business.

Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City.

Grants and allocations. Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

Encumbrances. As of June 30, 2022, the City had the following outstanding encumbrances:

Expense
General
Fund
Water
Fund
Wastewater
Fund
Transit
Fund
Transit
Fund
Grand
Total
Annual Stormwater Report $ 4,224 $ - $ - $ - $ - $ 4,224 Capital projects - 20,991 282,367 90,000 95,215 488,573 General Plan 203,253 - - - - 203,253
IT Expenses 32,105 3,997 4,811 - - 40,913
Marketing & Advertising - - - 6,852 - 6,852
Open Space/ Landscape Mt - - - - 6,516 6,516
Professional Services 22,000 746 - 6,595 2,500 31,841
Repairs and Maintenance 8,400 4,805 12,500 - 9,382 35,087 River Well Development - 156,968 - - - 156,968
Sidewalk Grinding 32,500 - - - - 32,500
Stormwater management Plan 6,740 - - - - 6,740
Street Sweeping 8,337 - - - - 8,337
Street Tree Management 24,861 - - - - 24,861
Studies - 31,583 18,124 - - 49,707
Supplies 977 - - - - 977
Sustainable Groundwater Management - 16,000 - - - 16,000 Tourism/ Marketing Expense 4,900 - - - - 4,900
Tree Maintenance 13,500 - - - - 13,500
Well Repairs and Maintenance - 4,200 - - - 4,200
Grand Total $ 361,797 $ 239, 290 $ 317,802 $ 103,447 $ 113, 613 $ 1,135,949 247
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

10. OPERATING AGREEMENTS
Water Supply Agreement. The City has an agreement with the Santa Ynez River Water Conservation District, Improvement District One, wherein the District and The Central Coast Water Authority constructed and operate a joint water treatment facility and water conveyance system. The Authority financed the plant and system by selling revenue bonds, and in 1997, issued $ 198 million in refunding revenue bonds. The agreement is a take-or-pay obligation, and the City is obligated to pay amounts specified in the agreement whether or not water is treated or delivered. The amounts paid by the City are pledged by the Authority for repayment of the Authority' s debt obligations. The City records these payments as operating expenses in its water enterprise fund.

11. PENSION PLANS
A. Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan ( Plan) administered by the California Public Employees’ Retirement System ( CalPERS). The Plan consists of individual rate plans ( benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors two miscellaneous rate plans and three safety rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 55 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employee’ s Retirement Law. 248
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

11. PENSION PLANS, CONTINUED
B. Benefits Provided
The rate plan provisions and benefits in effect at June 30, 2022 are summarized as follows:

Contributions – Section 20814( c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an actuarial basis, annually and is effective on July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The General Fund has typically been used to liquidate pension liabilities for governmental funds.

The City’s contributions to the Plan for the measurement period ended June 30, 2021 were $400,915. The City’s contributions to the Plan for the fiscal year ended June 30, 2022 recorded as deferred outflows of resources were $471,400.

As of June 30, 2022, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $2,596,064.

Miscellaneous
PEPRA
Miscellaneous
Safety
Hire date Prior to January
1, 2013
On or after
January 1, 2013
Prior to January
1 2013
Benefit formula 2.5% @ 55 2.0% @ 62 2% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 55
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 2.0% 2.0% Required employee contribution rates 8.000% 7.250% 0.000% Required employer contribution rates 12.990% 7.730% 0.000% Required unfunded liability payment 351,853$ 909$ 10,738$ 249
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

11. PENSION PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions
The City’s net pension liability for the Plan is measured as the proportionate share of the total net pension liability of the Plan. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportionate share of the net pension liability was based on the City’s plan liability and assetrelated information where available, and proportional allocations of individual plan amounts as of the valuation date where not available.

The City’ s proportionate share of the net pension liability for each Plan as of measurement dates June 30, 2020 and 2021 were as follows:

For the year ended June 30, 2022, the City recognized pension expense of $704,247 at June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
471,400 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023.

Proportion - June 30, 2020 0.04316%
Proportion - June 30, 2021 0.04800%
Change - Increase ( Decrease) 0.00484%
Deferred
Outflows
Deferred
Inflows of
of Resources Resources
Differences between expected and actual
experience 290,426$ -$
Net difference between projected and actual
earnings on pension plan investments - 2,269,538
Changes in proportions 131,283 -
Differences between expected and actual contributions - 399,358 Pension contributions subsequent to the
measurement date 471,400 -
Totals 893,109$ 2,668,896$
250
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

11. PENSION PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions – The total pension liability in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

The mortality table used was developed based on CalPERS- specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. Further details of the December 2017 Experience Study can be found on the CalPERS website www.calpers. ca.gov.

Discount Rate – The discount rate used to measure the total pension liability was 7.15% for the Plan.

To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

Fiscal Year
Ended June 30
2023 ( 537,317)$
2024 ( 535,789)
2025 ( 546,867)
2026 ( 627,214)
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry- Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increase Varies by entry age and service Investment Rate of Return ( 1) 7.15%
Mortality Derived by CalPERS membership
data for all funds
1) Net of pension plan investment expenses.
251
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

11. PENSION PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term first 10 years) and the long-term ( 11-60 years) using a building- block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both shortterm and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’ s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’ s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:

New
Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (a) Years 11+ ( b)
Global Equity 50. 00% 4.80% 5.98%
Global Fixed Income 28. 00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00%- 0.92%
Total 100. 00%
a) An expected inflation of 2.0% used for this period.
b) An expected inflation of 2.92% used for this period. 1% Current 1%
Decrease Discount Rate Increase

6.15% 7.15% 8.15%
Net Pension Liability $ 5,274,593 $ 2,596,064 $ 382,209 252
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

11. PENSION PLANS, CONTINUED
C. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’ s fiduciary net position is available in the separately issued CalPERS financial reports.

Payable to the Pension Plan
At June 30, 2022, the City reported no payable for outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.

Events Subsequent to the Measurement Date
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% ( net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

It is expected for the fiscal year ended June 30, 2022 that CalPERS will report investment losses resulting in a significant decrease in fiduciary net position and hence increase in the Plan net pension liability.

Information is currently unavailable as to the amount of losses incurred.

12. RESTRICTED NET POSITION AND FUND BALANCES
The $ 3,390,500 restricted amount in the governmental activities statement of net position represents amounts to be used only for specific purposes which restrictions are imposed by laws, formal agreements or other governments.

13. OTHER POST- EMPLOYMENT BENEFITS
A. Plan Description.

The City’s defined benefit OPEB Plan provides OPEB for all eligible full-time general and public safety employees of the City. The City entered into an agreement with CalPERS to participate in the CERBT, an agent multiple-employer other postemployment benefits plan, to fund the City’s OPEB. CERBT is administered by CalPERS, which is managed by an appointed board not under the control of the City Council. CEBT issues a publicly available financial report that can be found on the CalPERS website at www.calpers.ca.gov.
253
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

13. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
A. Plan Description, Continued
Benefits Provided.

The City’ s OPEB plan provides healthcare benefits to eligible retirees and their dependents. Benefits are provided through third party insurers, and the full cost of the benefits is provided by the Plan. The City’ s OPEB Plan provides for automatic or ad hoc post-employment benefit changes.

Employees Covered by the Benefit Terms.

At June 30, 2022, the following employees were covered by the benefit terms:

The City’s OPEB Plan is closed to new entrants.

B. Contributions
The City’s plan is affiliated with the State of California PERS in so far as the City’s health insurance premium payments are paid to the PERS. The PERS through an aggregation of single employer plans pools administrative functions in regard to purchases of commercial health insurance policies and coverages. City regulations grant authority to the City Council to establish and amend contribution requirements. Employees are not required to contribute to the plan. The amount contributed for the measurement period ended June 30, 2021 was $214,130 which amount was based on the City’s decision to prefund its obligation. The General Fund has typically been used to liquidate OPEB liabilities for governmental funds. The City’s contribution for fiscal year 2022 was $220,797.

C. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020.

D. Actuarial Assumptions
The total net OPEB liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement unless otherwise specified:

Mortality rates were based on the 2017 CalPERS Mortality for Miscellaneous and Schools Employees.

Change of assumptions: For measurement date June 30, 2021, the discount rate was decreased to 6.25%.

Inactive employees or beneficiaries current receiving benefits 25 Inactive employees entitled to but not yet receiving benefit payments - Active employees 22
47 Inflation 2.50 percent
Salary increases 2.75 percent, average, including inflation Investment rate of return 6.25 percent, net of OPEB plan investment expense Healthcare cost trend rates 4.0 percent per year
254
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

13. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
D. Actuarial Assumptions, Continued
The long-term expected rate of return on OPEB plan investments was determined using a buildingblock method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return weighing the expected future real rates of return by target asset allocation asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized below:

E. Discount Rate
The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current and active employees. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Percentage of Assumed Gross
Asset Class Portfolio Return
All Equities 40% 7.5450%
All Fixed Income 43% 4.2500%
Real Estate Investment Trusts 8% 7.2500%
All Commodities 4% 7.5450%
Treasury Inflation Protected Securities (TIPS) 5% 3.0000% 255
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

13. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
F. Net OPEB Liability
The following presents the Net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage- point lower (5.25 percent) or 1- percentage point higher (7.25 percent) than the current discount rate.

The following presents the Net OPEB liability of the City, as well as what the City’s net OPEB liability would be ifit were calculated using a discount rate that is 1-percentage-point lower (3 percent) or 1- percentage point higher (5 percent) than the current healthcare cost trend rate.

Total Plan Net
OPEB Fiduciary Net OPEB
Liability Position Liability
a) ( a) ( a) – (b)
Balances at 6/ 30/ 2020 (Measurement Date) 2,341,197$ 814,801$ 1,526,396$ Changes for the year:

Service cost 25,300 - 25,300
Interest 151,678 - 151,678
Changes in assumptions 67,026 - 67,026
Contributions – employer - 214,130 ( 214,130)
Net investment income - 161,140 ( 161,140)
Benefit payments ( 144,130) ( 144,130) -
Administrative expenses ( 299) 299
Net changes 99,874 230,841 ( 130,967)
Balances at 6/ 30/ 2021 (Measurement Date) 2,441,071$ 1,045,642$ 1,395,429$ Increase (Decrease)
1% Decrease Discount Rate 1% Increase

5.25% 6.25% 7.25%
Net OPEB Liability (Asset) 1,689,989$ 1,395,429$ 1,149,378$ Healthcare
1% decrease Cost Trend 1% increase
to Rate to

3.00% 4.00% 5.00%
Net OPEB Liability (Asset) 1,110,845$ 1,395,429$ 1,753,024$ 256
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2022

13. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
G. OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued financial report.

H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expense of $52,871. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
220,797 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as pension expense as follows:

14. RESTATEMENT OF ASSETS AND DEFERRED INFLOWS OF RESOURCES The City recorded a prior period adjustment to establish beginning lease receivables and related deferred inflows of resources of $198,860, as part of implementing GASB Statement No. 87, Leases. There was no impact on net position as a result of these restatements.

Deferred
Outflows
Deferred
Inflows of
of Resources Resources
OPEB contributions subsequent to the
measurement date 220,797$ -$
Differences between expected and actual experience 2,868 302,534 Changes in assumptions 59,046 37,426
Net difference between projected and actual
earnings on OPEB plan investments - 83,235
Totals 282,711$ 423,195$
Fiscal Year
Ended June 30
2023 ( 65,924)$
2024 ( 65,922)
2025 ( 64,360)
2026 ( 66,041)
2027 ( 44,753)
Thereafter ( 54,281)
257

REQUIRED SUPPLEMENTARY

INFORMATION
258
City of Solvang
Required Supplementary Information
For the year ended June 30, 2022

1. DEFINED BENEFIT PENSION PLAN
A. Schedule of the City's Proportionate Share of the Net Pension Liability - Last 10 Years* Fiscal year: 2022 2021 2020 2019
Measurement date: 6/ 30/ 2021 6/ 30/ 2020 6/ 30/ 2019 6/ 30/ 2018 Proportion of the net pension liability 0.04800% 0.04316% 0.04206% 0.04086% Proportionate share of the net pension liability 2,596,064$ 4,695,870$ 4,310,393$ 3,937,533$ Covered payroll 1,617,922$ 2,090,447$ 2,588,376$ 2,271,637$ Proportionate share of the net pension liability as a
percentage of covered payroll 160.46% 224.63% 166.53% 173.33% Plan's share of fiduciary net position as a percentage
of total pension liability 88.29% 75.10% 75.26% 75.26%
Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018.

The CalPERS mortality assumptions were adjusted in fiscal year 2019. 259
2018 2017 2016 2015
6/ 30/ 2017 6/ 30/ 2016 6/ 30/ 2015 6/ 30/ 2014

0.04040% 0.03943% 0.03911% 0.03911%
4,006,588$ 3,411,989$ 2,684,713$ 2,684,713$
2,247,735$ 2,212,540$ 2,413,263$ 2,413,263$
178.25% 154.21% 111.25% 111.25%

73.31% 74.06% 78.40% 78.40%
260
City of Solvang
Required Supplementary Information
For the year ended June 30, 2022

1. DEFINED BENEFIT PENSION PLAN, CONTINUED
B. Schedule of Employer Pension Contributions - Last 10 Years* Fiscal year 2022 2021 2020 2019
Contractually required contribution ( actuarially
determined) 471,400$ 400,915$ 369,421$ 339,043$
Contribution in relation to the actuarially
determined contributions ( 471,400) ( 400,915) ( 369,421) ( 339,043) Contribution deficiency (excess)-$ -$ -$ -$
Covered payroll 1,840,839$ 1,617,922$ 2,090,447$ 2,588,376$ Contributions as a percentage of covered payroll 25.61% 24.78% 17.67% 13.10% Note to Schedule
Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Methods and assumptions used to determine contribution rates:
aluation date (for contractually required contribution): 6/ 30/ 2019 6/ 30/ 2018 6/ 30/ 2017 6/ 30/ 2016 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Amortization method: ( 1) ( 1) ( 1) ( 1)
Assets valuation method: Market Value Market Value Market Value Market Value Inflation: 2.63% 2.63% 2.63% 2.75%
Salary increases: ( 2)( 2)( 2)( 2)
Investment rate of return: 7.00% 7.00% 7.25% 7.375%
Retirement age: ( 3)( 3)( 3)( 3)
Mortality: ( 4)( 4)( 4)( 4)
1) Level percentage of payroll, closed
2) Depending on age, service, and type of employment
3) 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%@62 4) Mortality assumptions are based on mortality
lfh l
261
2018 2017 2016 2015
279,932$ 267,856$ 275,424$ 390,955$
279,932) ( 267,856) ( 275,424) ( 390,955)
2,271,637$ 2,247,735$ 2,212,540$ 2,413,263$

12.32% 11.92% 12.45% 16.20%
6/ 30/ 2015 6/ 30/ 2014 6/ 30/ 2013 6/ 30/ 2012
Entry Age Entry Age Entry Age Entry Age
1) ( 1) ( 1) ( 1)
Market Value Market Value Market Value 15 Year
Smoothed
Market

2.75% 2.75% 2.75% 2.75%
2) ( 2) ( 2) ( 2)

7.50% 7.50% 7.50% 7.50%
3) ( 3) ( 3) ( 3)
4) ( 4) ( 4) ( 4)
262
City of Solvang
Required Supplementary Information
For the year ended June 30, 2022

2. OTHER POSTEMPLOYMENT BENEFITS
A. Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* Fiscal Year 2022 2021 2020
Measurement Period 2021 2020 2019
Total OPEB Liability
Service Cost 25,300$ 17,469$ 17,001$
Interest on the total OPEB liability 151,678 174,097 169,714 Differences between expected and actual experience - ( 397,078) - Changes of assumptions 67,026 ( 49,124) -
Benefit payments ( 144,130) ( 134,647) ( 117,453)
Net change in total OPEB liability 99,874 ( 389,283) 69,262 Total OPEB liability - beginning 2,341,197 2,730,480 2,661,218 Total OPEB liability - ending ( a) 2,441,071$ 2,341,197$ 2,730,480$ Plan Fiduciary Net Position
Contributions - employer 214,130$ 204,647$ 187,453$
Net investment income 161,140 39,698 48,299
Benefit payments ( 144,130) ( 134,647) ( 117,453)
Administrative expense ( 299) ( 633) ( 545)
Net change in plan fiduciary net position 230,841 109,065 117,754 Plan fiduciary net position - beginning 814,801 705,736 587,982 Plan fiduciary net position - ending (b) 1,045,642$ 814,801$ 705,736$ Net OPEB liability/(asset) - ending (a) - (b) 1,395,429$ 1,526,396$ 2,024,744$ Plan fiduciary net position as a
percentage of the total OPEB liability 42.84% 34.80% 25.85% Covered- employee payroll 1,773,026$ 2,412,314$ 2,639,268$ Net OPEB liability as a percentage of
covered-employee payroll 78.70% 63.28% 76.72%
Notes to Schedule
Fiscal year 2018 was the 1st year of implementation.

Change of assumptions: Mortality assumptions were updated in fiscal year 2021.

Actuarially determined contributions are not calculated for the plan. 263
2019 2018
2018 2017
16,546$ 14,390$
164,529 275,096
86,041) ( 121,194)
95,034 168,292
2,566,184 2,397,892
2,661,218$ 2,566,184$
159,080$ 174,832$
30,282 27,989
86,041) -
446) (121,194)
102,875 81,627
485,107 403,480
587,982$ 485,107$
2,073,236$ 2,081,077$

22.09% 18.90%
2,275,881$ 2,539,234$

91.10% 81.96%
264
City of Solvang
Required Supplementary Information
For the year ended June 30, 2022

3. BUDGETS AND BUDGETARY ACCOUNTING
A. Budgeting procedures
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds, except repayments of internal balances in the general fund are budgeted as an expenditure for budgetary purposes. Appropriations lapse at fiscal yearend. The appropriated budget is prepared by fund, function and department. The City Manager may make transfers of appropriations within a department. Transfers between departments and other changes require City Council approval.

The legal level of control is the department and fund level. The Council made supplemental appropriations during the fiscal year. Encumbrance accounting is not employed in governmental funds. 265
City of Solvang
Required Supplementary Information
For the year ended June 30, 2022

3. BUDGETS AND BUDGETARY ACCOUNTING, CONTINUED
B. Budgetary Comparison Schedule - General Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
Fund Balance, July 1 11,663, 928$ 11,663,928$ 11,663,928$ -$ Resources ( inflows):

Property taxes 1,474, 254 1,474,254 1,623, 747 149, 493 Sales taxes 1,419, 000 1,419,000 2,118, 762 699, 762
Transient occupancy taxes 3,632, 629 3,632,629 6,031, 568 2,398,939 Other taxes 255,000 255,000 288,349 33,349
Licenses and permits 95,000 95,000 215,497 120,497
Fines and forfeits 4,000 4,000 475 ( 3,525)
Intergovernmental 1,311,355 911,355 961,339 49,984
Interest 47,000 47,000 ( 107, 815) ( 154,815)
Charges for services 721,147 721,147 898,413 177,266
Miscellaneous 18,000 18,000 104, 103 86,103
Transfers in 201,172 201,172 199,816 ( 1,356)
Proceeds from sale of assets 4,000 4,000 - ( 4,000)
Amounts available for charges to appropriations 20,846,485 20,446,485 23,998,182 3,551,697 Charges to appropriations:

General Government:

Nondepartmental:

City council 37,200 37,200 37,200 -
Other 139, 558 169,558 101, 045 68,513
OPEB 169,520 169,520 178,515 ( 8,995)
Community support 384,231 391,731 522,721 ( 130,990)
Administration:

Legal 106,000 116,000 242,669 ( 126, 669)
General administration 1,362, 403 1,362,403 1,937, 720 ( 575, 317) Transfers out - - 275,881 ( 275, 881)
Public Safety:

Sheriff contract 2,210, 000 2,210,000 2,151, 624 58,376 Animal control 50,000 50,000 47,200 2,800
Mental health & 211 program 2,852 2,852 2,506 346
Culture and Recreation:

Tourism 588,415 923,415 645,759 277,656
Parks and recreation 134,236 134,236 265,607 ( 131,371) Library 184, 855 184,855 184, 855 -
Community Development:

City planning, building, development 775, 248 775,248 779, 590 ( 4,342) Public works:

Public works, streets, engineering 2,289,467 2,473,467 2,074,041 399,426 Total charges to appropriations 8,433,985 9,000,485 9,446,933 ( 446,448) Fund Balance, June 30 12,412,500$ 11,446, 000$ 14,551,249$ 3,105, 249$ Budget Amounts
266
City of Solvang
Required Supplementary Information
For the year ended June 30, 2022

3. BUDGETS AND BUDGETARY ACCOUNTING, CONTINUED
C. Budgetary Comparison Schedule - Impact Fee Special Revenue Fund Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Interest 18,424$ 18,424$ 6,855$ ( 11,569)$
Charges for services 28,539 28,539 42,633 14,094
Total revenues 46,963 46,963 49,488 2,525
EXPENDITURES:

Capital outlay 10,000 10,000 5,000 5,000
Total expenditures 10,000 10,000 5,000 5,000

REVENUES OVER
UNDER) EXPENDITURES 36,963 36,963 44,488 7,525
OTHER FINANCING SOURCES ( USES):

Transfers out - - ( 113,283) ( 113,283)
Total other financing sources (uses)- - ( 113,283) ( 113,283) Net change in fund balances 36,963$ 36,963$ ( 68,795) ( 105,758)$ FUND BALANCES:

Beginning of the year 1,600,302
End of year 1,531,507$
Budget Amounts
267

SUPPLEMENTARY INFORMATION
268
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21 269
City Capital Projects Fund accounts for monies committed and restricted for City capital projects.

BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN

GENERAL FUND AND SPECIAL REVENUE FUNDS
270
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual City Projects Capital Projects Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Interest 1,100$ 1,100$ ( 5,250)$ ( 6,350)$
Total revenues 1,100 1,100 ( 5,250) ( 6,350)
EXPENDITURES:

Capital outlay 3,015,000 3,066,000 1,745,069 1,320,931
Total expenditures 3,015,000 3,066,000 1,745,069 1,320,931

REVENUES OVER
UNDER) EXPENDITURES ( 3,013,900) ( 3,064,900) ( 1,750,319) 1,314,581 OTHER FINANCING SOURCES ( USES):

Transfers in - - 1,785,243 1,785,243
Total other financing sources (uses)- - 1,785,243 1,785,243 Net change in fund balances ( 3,013,900)$ ( 3,064,900)$ 34,924 3,099,824$ FUND BALANCES:

Beginning of the year ( 23,823)
End of year 11,101$
Budget Amounts
271
Traffic Safety Fund accounts for fines, forfeitures, and other monies restricted for traffic safety.

Gas Tax Fund accounts for funds from the State of California under the Street and Highway Code Sections 2103, 2105, 2106, 2107 and 2107.5. The use of funds is restricted to street related projects, which can include related public facilities for non-motorized traffic, e.g. bike and pedestrian paths.

Local Transportation Fund accounts for monies restricted by the State of California Transportation Development Act.

Measure A Fund accounts for Measure A Funds ( Santa Barbara County) restricted for road repair, traffic relief, and transportation safety projects and programs.

Skytt Mesa Landscape and Lighting Fund accounts for special assessments restricted for the Skytt Mesa Landscape and Lighting District.

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
272
City of Solvang
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2022
Skytt Mesa
Traffic Local Landscape
Safety Gas Tax Transportation Measure A and Lighting Totals ASSETS
Cash and investments 3,250$ 59,330$ 366,301$ 874,568$ 407,555$ 1,711,004$ Receivables:

Accounts receivable 233 31,431 762 90,672 - 123,098
Interest receivable 14 783 667 3,392 678 5,534
Total assets 3,497$ 91,544$ 367,730$ 968,632$ 408,233$ 1,839,636$

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable -$ -$ -$ -$ 6,958$ 6,958$
Total liabilities - - - - 6,958 6,958
Fund Balances:

Restricted for highways
and streets 3,497 91,544 367,730 968,632 401,275 1,832,678 Total fund balances 3,497 91,544 367,730 968,632 401,275 1,832,678 Total liabilities
and
fund balances 3,497$ 91,544$ 367,730$ 968,632$ 408,233$ 1,839,636$ Special Revenue Funds
273
City of Solvang
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2022
Skytt Mesa
Traffic Local Landscape
Safety Gas Tax Transportation Measure A and Lighting Totals REVENUES:

Special assessments -$ -$ -$ -$ 218,450$ 218,450$
Intergovernmental - 246,599 86,908 1,087,820 - 1,421,327 Interest ( 15) 743 ( 2,868) ( 3,882) ( 2,739) ( 8,761)
Charges for services 6,570 - - - - 6,570
Total revenues 6,555 247,342 84,040 1,083,938 215,711 1,637,586 EXPENDITURES:

Current:

Public works
Highways and streets - - - - 166,573 166,573
Total expenditures - - - - 166,573 166,573

REVENUES OVER
UNDER)
EXPENDITURES 6,555 247,342 84,040 1,083,938 49,138 1,471,013 OTHER FINANCING SOURCES ( USES):

Transfers out ( 5,050) ( 415,925) ( 35,000) (1,101,276) - ( 1,557,251) Total other financing
sources (uses) ( 5,050) ( 415,925) ( 35,000) (1,101,276) - ( 1,557,251) Net change in fund
balances 1,505 ( 168,583) 49,040 ( 17,338) 49,138 ( 86,238) FUND BALANCES:

Beginning of the year 1,992 260,127 318,690 985,970 352,137 1,918,916 End of year 3,497$ 91,544$ 367,730$ 968,632$ 401,275$ 1,832,678$ Special Revenue Funds
274
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Safety Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Interest 50$ 50$ ( 15)$ ( 65)$
Charges for services 5,000 5,000 6,570 1,570
Total revenues 5,050 5,050 6,555 1,505
OTHER FINANCING SOURCES ( USES):

Transfers out ( 5,050) ( 5,050) ( 5,050) -
Total other financing sources (uses)( 5,050) ( 5,050) ( 5,050) - Net change in fund balances -$ -$ 1,505 1,505$
FUND BALANCES:

Beginning of the year 1,992
End of year 3,497$
Budget Amounts
275
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental 267,037$ 267,037$ 246,599$ ( 20,438)$ Interest 1,450 1,450 743 ( 707)
Total revenues 268,487 268,487 247,342 ( 21,145)
EXPENDITURES:

Capital outlay - - - -
Total expenditures - - - -

REVENUES OVER
UNDER) EXPENDITURES 268,487 268,487 247,342 ( 21,145)
OTHER FINANCING SOURCES ( USES):

Transfers out ( 118,122) ( 118,122) ( 415,925) ( 297,803) Total other financing sources (uses)( 118,122) ( 118,122) ( 415,925) ( 297,803) Net change in fund balances 150,365$ 150,365$ ( 168,583) ( 318,948)$ FUND BALANCES:

Beginning of the year 260,127
End of year 91,544$
Budget Amounts
276
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Local Transportation Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental 84,203$ 84,203$ 86,908$ 2,705$
Interest 522 522 ( 2,868) ( 3,390)
Total revenues 84,725 84,725 84,040 ( 685)
OTHER FINANCING SOURCES ( USES):

Transfers out ( 35,000) ( 35,000) ( 35,000) -
Total other financing sources (uses)( 35,000) ( 35,000) ( 35,000) - Net change in fund balances 49,725$ 49,725$ 49,040 ( 685)$ FUND BALANCES:

Beginning of the year 318,690
End of year 367,730$
Budget Amounts
277
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure A Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Intergovernmental 395,688$ 395,688$ 1,087,820$ 692,132$ Interest 593 593 ( 3,882) ( 4,475)
Total revenues 396,281 396,281 1,083,938 687,657
EXPENDITURES:

Capital outlay - - - -
Total expenditures - - - -

REVENUES OVER
UNDER) EXPENDITURES 396,281 396,281 1,083,938 687,657
OTHER FINANCING SOURCES ( USES):

Transfers out ( 3,000) ( 3,000) (1,101,276) ( 1,098,276) Total other financing sources (uses)( 3,000) ( 3,000) (1,101,276) ( 1,098,276) Net change in fund balances 393,281$ 393,281$ ( 17,338) ( 410,619)$ FUND BALANCES:

Beginning of the year 985,970
End of year 968,632$
Budget Amounts
278
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Skytt Mesa Landscape and Lighting Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts ( Negative)
REVENUES:

Special assessments 219,024$ 219,024$ 218,450$ ( 574)$
Interest 1,500 1,500 ( 2,739) ( 4,239)
Total revenues 220,524 220,524 215,711 ( 4,813)
EXPENDITURES:

Current:

Public works
Highways and streets 208,650 208,650 166,573 42,077
Capital outlay 13,000 13,000 - 13,000
Total expenditures 221,650 221,650 166,573 55,077
Net change in fund balances ( 1,126)$ ( 1,126)$ 49,138 50,264$ FUND BALANCES:

Beginning of the year 352,137
End of year 401,275$
Budget Amounts
279

STATISTICAL SECTION
This part of the Government’ s comprehensive annual financial report presents detail information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’ s overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the government’ s financial performance and wellbeing have changed over time.

Revenue Capacity
These schedules contain information to help the reader assess the government’ s most significant local revenue sources: taxes and water revenues.

Debt Capacity
These schedules present information to help the reader assess the affordability of the government’ s current level of outstanding debt and the government’ s ability to issue additional debt in the future.

Demographic and Economic Information
These schedules help the reader understand the environment within which the government’ s financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government’ s financial report relates to the services the government provides and the activities it performs.
280
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21 281
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Go vernmentalactivities
Ne tinvestmentincapitalassets
12342031
12057865
11748077
11584893
12128629
12360410
12565957
12696479
12740666
13988390
Re stricted
3, 061331
3, 155589
3, 011325
3, 121123
3, 597517
3, 213182
3, 443607
3, 435769
3, 545533
3, 390500
Un restricted
6, 810793
5, 935965
7, 488153
8, 798516
7, 485859
9, 010003
9, 093838
7, 687783
8, 279527
11206764
Totalgovernmentalactivitiesnetposition
22214155
21149419
22247555
23504532
23212005
245835
95 251034
02 238200
31 245657
26 285856
54 Businesstypeactivities
Ne tinvestmentincapitalassets
9, 346335
9, 512247
10409946
10943614
10879295
10462415
12053677
11521718
11555587
12865006
Re strictedUn restricted
7, 933345
7, 097759
6, 794971
10725516
11550796
12687615
11679974
11469414
11645387
10263902
Totalbusinesstypeactivitiesnetposition
17279680
16610006
17204917
21669130
22430091
231500
30 237336
51 229911
32 232009
74 231289
08 Pr imarygovernmentCitywidetotals
Ne tinvestmentincapitalassets
21688366
21570112
22158023
22528507
23007924
22822825
24619634
24218197
24296253
26853396
Re stricted
3, 061331
3, 155589
3, 011325
3, 121123
3, 597517
3, 213182
3, 443607
3, 435769
3, 545533
3, 390500
Un restricted
14744138
13033724
14283124
19524032
19036655
21697618
20773812
19157197
19924914
21470666
Totalprimarygovernmentnetposition
39493835
37759425
39452472
45173662
45642096
477336
25 488370
53 468111
63 477667
00 517145
62 LastTenFiscalYears
accrualbasisofaccounting
Schedule1
Ci tyofSolvang
Ne tPositionbyComponent
282
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283
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Ne tExpenseRevenue
Go vernmentalActivities4259424509865953888195668802545528158241317464746851050261248815 943182
BusinesstypeActivities107134
284719
593711
1, 143461
454590
4134396625085071650036181313
TotalNetExpense4366558481394047951084525341500069154106927530996936121866252426 024495
Ge neralRevenuesGo vernmentalActivities
Taxes
Pr opertytaxes
1, 063715
1, 096028
1, 140579
1, 213316
1, 283266
1, 380568
1, 401623
1, 480839
1, 542764
1, 623747
Tr ansientoccupancytaxes
2, 985512
3, 425309
3, 833644
4, 195940
4, 330599
4, 320318
4, 618425
3, 440275
4, 078826
6, 031568
Salestaxes
1, 122814
1, 153845
1, 241436
1, 226777
1, 453808
1, 405281
1, 507745
1, 347670
1, 606443
2, 118762
Ot hertaxes
226792
237256
247173
248247
233572
286790
232707
273226
287548
288349
Investmentearnings
6, 223
16503
25323
43499
48294
109264
413701
364465
9, 490145251
Mi scellaneous
34436
118250
45425
103903
Tr ansfers51090120012002000852390306500311467
10299269796757968
SpecialItem
Totalgeneralrevenuestransfersandspecialitem
5, 353966
5, 927741
6, 486955
6, 925779
6, 497149
7, 195721
7, 897170
7, 127717
6, 872529
9, 963110
BusinesstypeActivity
Investmentearnings
258866
211189
1223648721
Mi scellaneousTr ansfers
51090
1, 200
1, 200
2, 000
852390
306500
311467102992
697967
57968
TotalBusinesstypeActivities
51090
1, 200
1, 200
2, 000
852390
306500
570333
108197
710203
9, 247
Totalprimarygovernment
5, 405056
5, 928941
6, 488155
6, 927779
7, 349539
7, 502221
8, 467503
7, 235914
7, 582732
9, 972357
Ch angeinnetposition
Ch angeinreportingofComponentunit
99414
Go vernmentalactivities
1, 094542
829082
1, 098136
1, 256977
1, 041868
1, 371590
4324241283371
747648
4, 019928
Businesstypeactivities56044
285919
594911
1, 145461
1, 306980
719939
504083742519
20984272066
TotalChangesinNetPosition
1, 038498
1, 115001
1, 693047
2, 402438
2, 348848
2, 091529
9365071926476
957490
3, 947862
Fi scalYear
Sc hedule2continued
Ci tyofSolvang
Ch angesinNetPosition
LastTenFiscalYears
accrualbasisofaccounting
284
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Ge neralFund
No nspendable
700
700
127805
76502
82192
85451
337809
229904
100412
234925
Re stricted
12553
13291
14290
18680
12206
58837
298837
26612
26315
26315
Co mmitted
2, 998543
3, 570693
3, 619902
4, 127320
4, 127320
4, 830633
4, 830633
4, 830633
4, 830633
4, 830633
As signed
526726
Un assigned
3, 256119
3, 767385
4, 871659
5, 345636
5, 824932
5, 937175
5, 913948
5, 161009
6, 179842
9, 459376
Re servedUn reserved
Totalgeneralfund
6, 267915
7, 352069
8, 633656
9, 568138
10046650
10912096
11381227
10248158
11663928
14551249
Al lothergovernmentalfunds
No nspendable
275000
275000
Re stricted
3, 052778
3, 143036
2, 997035
3, 180161
3, 315997
3, 154345
3, 144770
3, 409157
3, 519218
3, 375286
Co mmittedAs signedUn assigned216957768123823Re servedUn reserved SpecialRevenueCa pitalProjectsOt herPurposes
Totalallothergovernmentalfunds
3, 052778
3, 143036
2, 997035
3, 180161
3, 590997
3, 429345
3, 123075
3, 331476
3, 495395
3, 375286
No teTheprovisionsofGASBStatementNumber54wereappliedprospectivelyfromfiscalyear2011forwardandthatyearspriortothathavenotbeenrestatedtoconformwi ththeGASB54 Fi scalYear
Sc hedule3
Ci tyofSolvang
FundBalancesofGovernmentalFunds
LastTenFiscalYears
modifiedaccrualbasisofaccounting
285
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

REVENUES
Taxes 5,555$ 5,922$ 6,463$ 6,885$ 7,301$ 7,393$ 7,761$ 6,542$ 7,516$ 10, 062$ Licenses and permits 195 280 224 203 184 111 127 126 129 215 Fines and forfeits 24 22 11 9 9 9 7 4 7 0.48
Charges for services 907 984 982 956 920 962 834 722 765 948 Special assessments 75 75 111 153 203 202 193 207 215 218 Intergovernmental 1,077 638 731 619 1,489 618 708 918 1,334 2,383 Investment earnings 48 24 34 57 64 150 374 327 11 ( 115) Other revenues 91 15 6 47 209 203 121 136 54 104
Total Revenues 7,972 7,960 8,562 8,929 10, 379 9,649 10, 124 8,982 10, 031 13, 816

EXPENDITURES
General government 1,335 1,393 1,547 1,951 1,669 1,546 1,762 2,467 1,803 3,020 Public safety 1,613 1,628 1,644 1,631 1,662 1,734 1,814 2,023 1,855 2,201 Culture and recreation 1,541 1,592 1,592 1,695 1,654 1,989 1,952 2,195 1,505 1,096 Public works 2,168 1,717 1,837 2,068 3,255 1,941 1,649 1,534 1,475 2,142 Community development 427 455 517 464 434 560 776 622 747 780 Housing - - 394 - - - - - - -
Capital outlay 13 - - - - 869 1,597 1,164 1,059 1,849
Transportation - - - - - - - - - -
Intergovernmental - - - - - - - - - -
Debt service:- - - - - - - - - -
Costs of issuance - - - - - - - - - -
Principal - - - - - - - - - -
Interest 3 - - - - - - - - -
Total expenditures 7,100 6,785 7,531 7,809 8,674 8,638 9,550 10, 004 8,444 11, 088 Excess ( Deficiency) of Revenues over
Expenditures 872 1,175 1,031 1,120 1,705 1,010 574 ( 1,022) 1,588 2,729 Other Financing Sources ( Uses)
Transfers in 192 169 161 176 431 175 176 156 920 1,985
Transfers out ( 193)( 170)( 162)( 178)( 1246)( 482)( 588)( 156)( 926)( 1946) Change in reporting of component unit - -- -- - - 97 - - Total Other Financing Sources ( Uses) 192 169 161 176 431 175 176 97 ( 6) 39 Net change in fund balances 1,064$ 1,344$ 1,192$ 1,296$ 2,136$ 1,186$ 750$ ( 925)$ 1,582$ 2,767$ Debt service as a percentage of noncapital
expenditures 0.05% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% modified accrual basis of accounting)
Fiscal Year (ending June 30)
Schedule 4
City of Solvang
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
In Rounded Thousands of Dollars)
286
Fiscal Real Personal Total Direct
Year Property Property Totals Tax Rate
2012-2013 924,661 32,642 957,303$ 1.00%
2013-2014 934,243 35,746 969,989$ 1.00%
2014-2015 979,763 32,966 1,012,729$ 1.00%
2015-2016 1,041,231 30,866 1,072,097$ 1.00%
2016-2017 1,105,535 32,355 1,137,891$ 1.00%
2017-2018 1,168,412 33,137 1,201,549$ 1.00%
2018-2019 1,224,324 34,740 1,259,064$ 1.00%
2019-2020 1,285,410 39,041 1,324,451$ 1.00%
2020-2021 1,329,682 40,297 1,369,979$ 1.00%
2021-2022 1,383,585 40,903 1,424,487$ 1.00%
Source: County of Santa Barbara Assessor' s Office
Assessed Taxable Values
Note: In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property maybe increased by an inflation factor (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above ( in our reports) represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Schedule 5
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
in thousands of dollars)
287
General
Fiscal Basic Obligation School Special
Year Rate Debt Rate Total Districts Districts
2012-2013 1.00% 0.00% 1.00% 0.05256% 0.00000%
2013-2014 1.00% 0.00% 1.00% 0.05256% 0.00000%
2014-2015 1.00% 0.00% 1.00% 0.05256% 0.00000%
2015-2016 1.00% 0.00% 1.00% 0.05256% 0.00000%
2016-2017 1.00% 0.00% 1.00% 0.05256% 0.05762%
2017-2018 1.00% 0.00% 1.00% 0.06631% 0.06313%
2018-2019 1.00% 0.00% 1.00% 0.06362% 0.06197%
2019-2020 1.00% 0.00% 1.00% 0.06294% 0.05583%
2020-2021 1.00% 0.00% 1.00% 0.06294% 0.05646%
2021-2022 1.00% 0.00% 1.00% 0.06711% 0.05825%
Source: California Municipal Statistics
Note: The City's direct property tax rates can only be changed with specific voter approval.

City Direct Rate Overlapping Rates
Schedule 6
City of Solvang
Direct and Overlapping Property Tax Rates
For The Last Ten Fiscal Years
Rates per $100 of assessed value)
288
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 29,345$ 1 2.06% Santa Ynez Band of Mission Indians 29,072$ 1 2.12% Worldmark,The Club 17,838 2 1.25% Worldmark,The Club 17,838 2 1.30% Lombard Street, LP 17,243 3 1.21% Lombard Street, LP 16,935 3 1.24% Alisal Guest Ranch 15,452 4 1.08% Alisal Guest Ranch 15,107 4 1.10% SYBCI California Hotel No. 2, LLC 14,613 5 1.03% SYBCI California Hotel No. 2, LLC 14,478 5 1.06% Solvang Hotel Group, LP 14,014 6 0.98% Solvang Hotel Group, LP 13,864 6 1.01% Alisal Oaks, LLC 8,090 7 0.57% Garfield Beach CVS, LLC 8,660 7 0.63% Wine Manor Management, LLC 7,002 8 0.49% Alisal Oaks, LLC 8,007 8 0.58% Oak Park Leasing, LLC 6,856 9 0.48% Wine Manor Management, LLC 6,931 9 0.51% M P Paso, LLC 6,196 10 0.43% Oak Park Leasing, LLC 6,786 10 0.50% Total 136,649$ 9.59% Total 137,678$ 10.05%
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 28,555$ 1 2.16% Santa Ynez Band of Mission Indians 28,047$ 1 2.23% Worldmark,The Club 17,505 2 1.32% Worldmark,The Club 17,178 2 1.36% Lombard Street, LP 16,398 3 1.24% Alisal Guest Ranch 13,995 3 1.11% Alisal Guest Ranch 14,373 4 1.09% SYBCI California Hotel, No. 2, LLC 13,974 4 1.11% SYBCI California Hotel No. 2, LLC 14,224 5 1.07% Lombard Street, LP 12,376 5 0.98% Solvang Hotel Group, LP 11,598 6 0.88% Solvang Hotel Group, LP 10,978 6 0.87% 1980s Old Mission Drive, LLC 8,353 7 0.63% Alisal Oaks, LLC 7,698 7 0.61% Alisal Oaks, LLC 7,851 8 0.59% Wine Manor Management, LLC 6,668 8 0.53% Wine Manor Management, LLC 6,798 9 0.51% 1980S Old Mission Drive, LLC 6,645 9 0.53% Oak Park Leasing, LLC 6,654 10 0.50% Oak Park Leasing, LLC 6,524 10 0.52% Total 132,308$ 9.99% Total 124,083$ 9.86%
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 27,550$ 1 2.29% Santa Ynez Band of Mission Indians 27,063$ 1 2.38% Worldmark,The Club 16,400 2 1.36% Worldmark,The Club 16,000 2 1.41% SYBCI California Hotel, No. 2, LLC 13,730 3 1.14% SYBCI California Hotel, No. 2, LLC 13,490 3 1.19% Alisal Guest Ranch 13,159 4 1.10% Alisal Guest Ranch 12,337 4 1.08% Palm Springs Inn, LLC 12,136 5 1.01% Palm Springs Inn, LLC 11,901 5 1.05% Solvang Hotel Group, LP 10,763 6 0.90% Solvang Hotel Group, LP 10,552 6 0.93% Alisal Oaks, LLC 7,548 7 0.63% Alisal Oaks, LLC 7,401 7 0.65% Wine Manor Management, LLC 6,540 8 0.54% Wine Manor Management, LLC 6,415 8 0.56% Oak Park Leasing, LLC 6,369 9 0.53% Cook, Frieda Survivors Trust 6,272 9 0.55% M P Paso, LLC 5,303 10 0.44% Skytt Properties, LLC 6,245 10 0.55% Total 119,498$ 9.95% Total 117,676$ 10.34%
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 26,696$ 1 2.49% Santa Ynez Band of Mission Indians 26,226$ 1 2.59% Worldmark,The Club 17,877 2 1.67% Worldmark,The Club 17,543 2 1.73% SYBCI California Hotel, No. 2, LLC 13,310 3 1.24% Skytt Properties, LLC 14,927 3 1.47% Alisal Guest Ranch 12,489 4 1.16% SYBCI California Hotel, No. 2, LLC 13,078 4 1.29% Solvang Hotel Group, LP 10,393 5 0.97% Alisal Guest Ranch 12,477 5 1.23% Palm Springs Inn LLC 7,519 6 0.70% Solvang Hotel Group, LP 10,190 6 1.01% Alisal Oaks, LLC 7,290 7 0.68% NWK1, Inc 7,740 7 0.76%
Wine Manor Management, LLC 6,321 8 0.59% Kabir Bluestar, LLC 7,375 8 0.73% Cook, Frieda Survivors Trust 6,178 9 0.58% Alisal Oaks, LLC 7,148 9 0.71% M P Paso, LLC 5,121 10 0.48% Cook, Frieda Survivors Trust 6,057 10 0.60% Total 113,194$ 10.56% Total 122,761$ 12.12%
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Taxpayer Value Rank Assessed Value Santa Ynez Band of Mission Indians 26,108$ 1 2.69% Santa Ynez Band of Mission Indians 25,649$ 1 2.68% Worldmark,The Club 17,467 2 1.80% Worldmark,The Club 17,141 2 1.79% SYBCI California Hotel, No. 2, LLC 13,026 3 1.34% Alisal Guest Ranch 12,795 3 1.34% Alisal Guest Ranch 12,743 4 1.31% Solvang Hotel Group, LP 9,945 4 1.04% Solvang Hotel Group, LP 10,144 5 1.05% SYBCI California Hotel, No. 2, LLC 9,507 5 0.99% Kabir Bluestar, LLC 8,879 6 0.92% NWK1, Inc 8,844 6 0.92% Alisal Oaks, LLC 7,116 7 0.73% Wine Valley Inn, LLC 8,732 7 0.91% Cook, Frieda Survivors Trust 6,030 8 0.62% Alisal Oaks, LLC 6,977 8 0.73% NWK1, Inc 5,889 9 0.61% Cook, Frieda Survivors Trust 5,912 9 0.62% Copper Alisal Holdings, LLC 5,520 10 0.57% Copper Alisal Holdings, LLC 5,520 10 0.58% Total 112,922$ 11.64% Total 111,022$ 11.60%
Source: Santa Barbara County Assessor' s Office
2020
2022 2021
Schedule 7
City of Solvang
Principal Property Tax Payers - Top Ten Payers
Last Ten Fiscal Years
Dollar Amounts in Thousands)
2019
20152016
2014 2013
2018 2017
289
City of Solvang
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections within the Fiscal Total Collections
Year of the Levy To Date
Fiscal Year
Total Tax Levy
for Fiscal Year Amount
Percentage of
Levy
Collections in
Subsequent
Years
Amount
Collected
Percentage of
Levy
2012- 13 599,125 593,058 99.0% 5,812 598,869 100. 0%
2013- 14 606,613 601,774 99.2% 4,599 606,373 100. 0%
2014- 15 631,868 626,577 99.2% 4,944 631,522 99.9%
2015- 16 667,906 661,254 99.0% 4,995 666,249 99.8%
2016- 17 708, 584 702, 791 99.2% 4,393 707, 183 99.8%
2017- 18 747, 495 738, 881 98.8% 6,669 745, 550 99.7%
2018- 19 780, 734 771, 772 98.9% 6,634 778, 406 99.7%
2019- 20 821, 350 809, 645 98.6% 8,652 818, 296 99.6%
2020- 21 849, 985 838, 261 98.6% 8,321 846, 582 99.6%
2021- 22 886, 964 877, 202 98.9%- 877, 202 98.9%
Source: Santa Barbara County Auditor- Controller' s Office Note: Figures listed above are only representative of Secured taxes collected.

Schedule 8
290
Number Hotels Number Hotels
Fiscal Year
City Wide
Occupancy
Rate
Average Daily
Room Rates
50 or More
Rooms
Under 50
Rooms
2013 67% 139.62$ 2,178,318$ 820,489$
6 10
2014 68% 147.54$ 2,469,434$ 964,365$
6 11
2015 72% 171.08$ 2,766,680$ 1,063,561$
6 17
2016 74% 191.84$ 2,813,475$ 1,368,750$
6 18
2017 72% 188.51$ 2,852,189$ 1,477,881$
6 18
2018 70% 166.43$ 3,203,410$ 1,116,882$
7 18
2019 71% 176.56$ 3,397,220$ 1,143,566$
7 19
2020 55% 177.98$ 2,391,340$ 982,733$
7 21
2021 59% 193.40$ 2,684,185$ 1,404,844$
8 21
2022 77% 227.49$ 4,362,416$ 1,665,365$
8 22
Penalties and Interest are not included in these figures.

Source: City of Solvang Finance Department
Schedule 9
City of Solvang
Transient Occupancy Tax - Principal Payers and Other Data Last Ten Fiscal Years
Concentration By Hotel Size Based
on Number of Rooms
Transient Occupancy Tax
Revenues in Dollars
291
Fiscal
Year
Monthly
Base Rate
Rate
Per CCF
748 Gallons)
Outside
Users
Rate per CCF
2013 65.631 3.002 4.50

3.533 5.30
2014 69.081 3.162 4.74

3.713 5.57
2015 72.711 3.162 4.74

3.713 5.57
2016 75.431 3.452 5.18

4.053 6.08
2017 75.431 3.452 5.18

4.053 6.08
2018 75.431 3.452 5.18

4.053 6.08
2019 75.431 3.452 5.18

4.053 6.08
2020 75.431 3.452 5.18

4.053 6.08
2021 75.431 3.452 5.18

4.053 6.08
2022 75.431 3.452 5.18

4.053 6.08
Source: City of Solvang Finance Department
Notes:
1) This rate is for a 5/8" meter
2) The City of Solvang went to tiered rates, effective November 21, 2011.

This rate is for 0 to 1600 Cubic Feet.
3) This rate is for 1601 Cubic Feet and above.

Schedule 10
City of Solvang
Water Rates
Last Ten Fiscal Years
292
Single Family Multi Family
Residential Residential Commercial Other
Fiscal
Year Totals
2013 2,343,935 379,449 897,317 578,884 4,199,585
1,687 82 263 121 2,153
2014 2,755,279 353,455 771,435 733,473 4,613,643
1,695 69 226 118 2,108
2015 2,621,212 295,474 824,286 618,427 4,359,400
1,734 70 226 118 2,148
2016 2,667,228 289,436 819,771 588,547 4,364,982
1,767 70 226 118 2,181
2017 2,762,880 309,802 774,336 637,288 4,484,306
1,780 70 222 115 2,187
2018 2,973,360 322,513 796,271 704,473 4,796,616
1,781 71 223 113 2,188
2019 2,902,029 321,349 801,045 662,831 4,687,254
1,781 71 224 113 2,189
2020 3,018,851 321,125 752,049 671,384 4,763,409
1,781 71 224 113 2,189
2021 3,193,794 335,547 771,099 747,515 5,047,955
1,781 71 224 113 2,189
2022 3,190,974 356,623 831,794 764,939 5,144,331
1,769 75 213 120 2,177
Source: City of Solvang Finance Department
Notes: Connection fees, Interest Income and Transfers are not included in the above figures.

Class of Customer
Revenue in Dollars and Number of Customers
Schedule 11
City of Solvang
Water Revenue Concentration Data
Last Ten Fiscal Years
Water Revenue Concentration Data
293
2022 2021 2020 2019
Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Atterdag Village Atterdag Village Atterdag Village Atterdag Village Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort City of Solvang City of Solvang City of Solvang City of Solvang Mission Oaks Mission Oaks Mission Oaks Mission Oaks
Rancho S.Y. Mobile Estates Rancho S.Y. Mobile Estates Rancho S.Y. Mobile Estates Rancho S.Y. Mobile Estates Solvang Mesa, LLMD Solvang Mesa, LLMD Solvang Mesa, LLMD Solvang Mesa, LLMD The Landsby/Mad&Vin SY Cottage Hospital Solvang School Solvang School Turtle Hospitality The Landsby/Mad&Vin Vinland Hotel Vacations Inn Solvang Worldmark Worldmark Worldmark Worldmark
2018 2017 2016 2015
Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Atterdag Village Atterdag Village Atterdag Village Atterdag Village Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort City of Solvang City of Solvang City of Solvang City of Solvang Holiday Inn Express Hadsten House Hadsten House Hadsten House Mission Oaks Holiday Inn Express Holiday Inn Express Inland Pacific Builders Rancho S.Y. Mobile Estates Mission Oaks Inland Pacific Builders Mission Oaks Solvang Mesa, LLMD Rancho S.Y. Mobile Estates Mission Oaks Rancho S.Y. Mobile Estates Solvang School Solvang School Rancho S.Y. Mobile Estates Solvang School Worldmark Worldmark Worldmark Worldmark
2014 2013
Alisal Guest Ranch Alisal Guest Ranch
Atterdag Village Atterdag Village
Chumash Casino Resort Chumash Casino Resort
City of Solvang City of Solvang
Hadsten House Mission Oaks
Holiday Inn Express N&G Investments
Inland Pacific Builders Oak Park Apartments
Mission Oaks Rancho S.Y. Mobile Estates
Rancho S.Y. Mobile Estates Solvang School
Solvang School Worldmark Solvang
Source: City of Solvang Finance Department
Fiscal Years Ended June 30
Schedule 12
City of Solvang
Principal Water Sale Purchasers - Top Ten
Last Ten Fiscal Years
In Alphabetical Order)
294
Fi scal
Year
Ge neral
Ob ligation
Bonds
Lease
Re venue
Bonds
Special
As sessment
Bonds1
No tes
Ca pital
Lease
Ob ligations
Ca pital
Lease
Ob ligations
Installment
Agreement
Total
Ou tstanding
De bt
Percentageof
Personal
Income
Population
De btper
Ca pita
2013
0%2
52743
2014
0%2
53363
2015
0%2
54493
2016
0%2
54953
2017
0%2
56023
2018
0%2
56133
2019
0%2
55753
2020
0%2
55623
2021
0%2
58583
2022
0%2
57093
No tes
1Presentednetoforiginaldiscountsandpremiums2PersonalincomeisdisclosedonSchedule173CaliforniaDepartmentofFinance Go vernmentalActivities
BusinesstypeActivities
Sc hedule13
Ci tyofSolvang
Ra tiosofOutstandingDebtbyType
LastTenFiscalYears
DolarsinThousandsexceptforPerCapita
295
Governmental Unit:

Debt
Outstanding
Estimated
Percentage
Applicable2
Amount
Applicable to
Primary
Government
Direct and Overlapping General Fund Debt
Santa Barbara County Certificates of Participation 27,125,000$ 1.510% 409,588$ Santa Ynez Valley Union High School District COP 1,301,000 18.503% 240,724$ Buellton Union School District Cert of Participation - 0.000%-$ Total Gross Direct and Overlapping General Fund Debt 650,312$ Less: Santa Barbara County Supported Obligations ( 27,633)$ Total Net Direct and Overlapping General Fund Debt 622,679$ Overlapping Tax and Assessment Debt
Allan Hancock Joint Community College District 130,545,032$ 4.610% 6,018,126$ Santa Ynez Valley Union School District 11,260,000$ 18.503% 2,083,438$ Buellton Union School district 5,074,276 0.882% 44,755$ Solvang School District 8,773,721 81.633% 7,162,252$
Total Overlapping Tax and Assessment Debt 15,308,571$
Subtotal, overlapping debt 15,958,882$ 3
City of Solvang direct debt -
Total direct and overlapping debt 15,931,249$
Source: California Municipal Statistics, Inc.
3) Excludes tax and revenue anticipation notes, enterpirse revenue, mortgage revenue and non- bonded capital lease obligations.

Schedule 14
City of Solvang
Direct and Overlapping Governmental Activities Debt
As of June 30, 2022
2) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City, divided by the district's total taxable assessed value.

Notes:
1) Overlapping governments are those that coincide, at least in part with geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the property taxpayers of the City of Solvang. This process recognizes that, when considering the government' s ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 296
Total Debt
Applicable
Total Debt To Limit as
Fiscal Debt Applicable Percentage
Year Limit To Limit of Debt Limit
2013 35,898,852$ -$ 0.00%
2014 36,374,577$ -$ 0.00%
2015 37,977,325$ -$ 0.00%
2016 40,226,713$ -$ 0.00%
2017 42,670,909$ -$ 0.00%
2018 45,058,074$ -$ 0.00%
2019 47,214,897$ -$ 0.00%
2020 49,930,185$ -$ 0.00%
2021 51,638,388$ -$ 0.00%
2022 53,679,796$ -$ 0.00%
Assessed Value 1,431,466,018$
Debt Limit (3.75% of assessed value) 53,679,976
Less debt applicable to limit:

General Obligation bonds 0
Total debt applicable to limit 0
Legal Debt Margin 53,679,976$
Sources: Santa Barbara County Assessor' s Office and California Municipal Statistics, Inc.

Note: California Government Code, Section 43605 sets the debt limit at 15%. The code section was enacted when assessed valuations were based on 25% of full market value. This has since changed to 100% of full market value. Thus the limit shown is 3.75%, one-fourth the limit of 15%.

Legal Debt Margin Calculation for Fiscal Year 2022
Schedule 15
City of Solvang
Legal Debt Margin Information
Last Ten Fiscal Years
297
Special
Fiscal Assessment
Year Collections Principal Interest Coverage
2013 - - - -
2014 - - - -
2015 - - - -
2016 - - - -
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
2022 - - - -
Water Capital Less Net
Service Impact Operating Available
Revenues1 Fees Expenses2 Revenue Principal Interest Coverage 2013 4,492,912 184,331 4,093,060 584,183 - - -
2014 4,671,555 481,283 4,842,994 309,844 - - -
2015 4,422,992 497,405 4,541,401 378,996 - - -
2016 4,457,268 294,184 3,851,606 899,846 - - -
2017 4,566,227 102,409 3,771,037 897,599 - - -
2018 4,919,648 26,455 4,023,666 922,437 - - -
2019 4,742,528 35,716 4,558,594 219,650 - - -
2020 4,915,834 4,707 4,566,663 353,878 - - -
2021 5,110,938 22,978 4,930,863 203,053 - - -
2022 5,209,467 166,715 4,878,634 497,548 - - -
Wastewater Capital Less Net
Service Impact Operating Available
Revenues1 Fees Expenses2 Revenue Principal Interest Coverage 2013 1,532,057 141,346 1,566,073 107,330 - - -
2014 1,640,187 265,619 1,338,696 567,110 - - -
2015 1,623,447 320,403 1,390,063 553,787 - - -
2016 1,736,952 201,661 1,315,685 622,928 - - -
2017 1,669,291 90,875 1,630,740 129,426 - - -
2018 1,824,725 14,020 1,682,663 156,082 - - -
2019 1,763,132 - 1,944,950 ( 181,818) - - -
2020 1,499,245 - 2,052,784 ( 553,539) - - -
2021 1,417,321 - 1,802,726 ( 385,405) - - -
2022 1,552,271 - 1,797,484 ( 245,213) - - -
Source: City of Solvang Finance Department
Notes:
1) Water and wastewater revenues include operating revenues and interest revenues. 2) Operating Expenses exclude depreciation and amortization Schedule 16
City of Solvang
Pledged Revenue Coverage
Last Ten Fiscal Years
Debt Service
Water Installment Agreement and Capital Lease
Wastewater Capital Lease Obligation
Debt Service
Special Assessment Bonds
Debt Service
298
Fiscal Year Population1 Personal Income
Per Capita
Personal
Income2
Unemployment
Rate3
2013 5274 206,419,086 39,139 3.00%3
2014 5336 217,297,928 40,723 2.60%3
2015 5449 216,957,384 39,816 7.10%3
2016 5495 216,140,330 39,334 7.14%3
2017 5602 224,797,056 40,128 3.45%3
2018 5613 225,238,464 40,128 2.30%3
2019 5575 242,462,325 43,491 3.00%3
2020 5562 250,395,678 45,019 6.20%3
2021 5858 297,826,578 50,841 4.30%3
2022 5709 325,144,677 56,953 4.20%3
Sources: City of Solvang Finance Department
Notes:
1) State of California, Department of Finance
2) United States Census Bureau
3) State of California, Employment Development Department Schedule 17
City of Solvang
Demographic and Economic Statistics
For The Last Ten Fiscal Years
299
Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1
Alisal Guest Ranch 389 1 13.41% Alisal Guest Ranch 326 1 10.87% Alisal Guest Ranch 331 1 11.41% Atterdag Village (formerly
Solvang Lutheran Home) 182 2 6.28%
Atterdag Village (formerly
Solvang Lutheran Home) 163 2 5.43%
Atterdag Village (formerly
Solvang Lutheran Home) 174 2 6.00%
New Frontiers Market 101 3 3.48% New Frontiers Market 107 3 3.57% New Frontiers Market 103 3 3.55% Santa Ynez Cottage
Hospital 101 3 3.48%
Santa Ynez Cottage
Hospital 88 4 2.93%
Santa Ynez Cottage
Hospital 93 4 3.21%
Landsby/Mad & Vin 76 5 2.62% Landsby/Mad & Vin 69 5 2.30% Solvang Unified School
District 64 5 2.21%
Valley Fresh Market 67 6 2.31%
Solvang Unified School
District 68 6 2.27% Valley Fresh Market 62 6 2.14%
Solvang Unified School
District 62 7 2.14% Valley Fresh Market 65 7 2.17% Landsby/Mad & Vin 58 7 2.00% Solvang Brew 52 8 1.79% Solvang Brew 51 8 1.70% Hotel Corque 35 8 1.21% Hotel Corque 37 9 1.28% Hotel Corque 38 9 1.27% Nielsen Building Materials 27 9 0.93% Nielsen Building Materials 24 10 0.83% Nielsen Building Materials 27 10 0.90% Solvang Brew 0* 10 0.00% Totals 1091 37.62% Totals 1002 33.40% Totals 947 32.66% COVID related, normal count is 58
Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1
Alisal Guest Ranch 369 1 12.30% Alisal Guest Ranch 356 1 12.28% Alisal Guest Ranch 303 1 10.45% Atterdag Village (formerly
Solvang Lutheran Home) 177 2 5.90%
Atterdag Village (formerly
Solvang Lutheran Home) 170 2 5.86%
Atterdag Village (formerly
Solvang Lutheran Home) 170 2 5.86%
New Frontiers Market 115 3 3.83%
Santa Ynez Cottage
Hospital 87 3 3.00%
Santa Ynez Cottage
Hospital 96 3 3.31%
Santa Ynez Cottage
Hospital 93 4 3.10% New Frontiers Market 77 4 2.66% Solvang Brew 75 4 2.59% Landsby/Mad & Vin 65 5 2.17% Solvang Brew 68 5 2.34%
Solvang Unified School
District 68 5 2.34%
Nielsen's Market/Valley
Fresh 64 6 2.13%
Solvang Unified School
District 58 6 2.00% Nielsens Market 62 6 2.14%
Solvang Brew 58 7 1.93% Landsby 55 7 1.90% New Frontiers Market 55 7 1.90% Solvang Unified School
District 57 8 1.90% Hotel Corque 53 8 1.83% Landsby 55 7 1.90% Hotel Corque 54 9 1.80% Nielsens Market 52 9 1.79% Hotel Corque 47 9 1.62% Root 246 46 10 1.53% Root 246 47 10 1.62% Root 246 42 10 1.45% Totals 1098 36.60% Totals 1023 35.28% Totals 973 33.55% Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment1 Employer
Number of
Employees Rank
Percentage of
Total City
Employment
Alisal Guest Ranch 294 1 10.50% Alisal Guest Ranch 298 1 10.64% Alisal Guest Ranch 285 1 8.91% Atterdag Village (formerly
Solvang Lutheran Home) 167 2 5.96%
Atterdag Village (formerly
Solvang Lutheran Home) 145 2 5.18%
Atterdag Village (formerly
Solvang Lutheran Home) 130 2 4.06%
Santa Ynez Cottage
Hospital 91 3 3.25%
Santa Ynez Cottage
Hospital 91 3 3.25% Nielsens Market 75 3 2.34%
Solvang Brew 75 4 2.68% Nielsens Market 69 4 2.46%
Solvang Unified School
District 71 4 2.22%
New Frontiers Market 70 5 2.50%
Solvang Unified School
District 65 5 2.32%
Santa Ynez Cottage
Hospital 67 5 2.09%
Nielsens Market 69 6 2.46% Solvang Brew 65 5 2.32% Solvang Brew 67 5 2.09% Solvang Unified School
District 67 7 2.39% New Frontiers Market 60 7 2.14% Root 246 60 7 1.88% Hotel Corque 51 8 1.82% Hotel Corque 56 8 2.00% Hotel Corque 58 8 1.81% Landsby 46 9 1.64% Landsby 56 8 2.00% New Frontiers Market 52 9 1.63% Root 246 46 9 1.64% Root 246 53 10 1.89% Hadsten House 47 10 1.47% Totals 976 34.86% Totals 958 34.21% Totals 912 28.50%
Notes:

Sources: City ofSolvang Finance Department, State of California Employment Development Department, and City of Solvang Employers 1) Total City Labor Force is 2900, based on State of California Employment Development Department Data for FY 2021-22.

The City implemented GASB Statement Number 44 in the 2006 fiscal year, and therefore information in this schedule is being provided prospectively from the year of implementation.

Fiscal Year Ended June 30, 2019 Fiscal Year Ended June 30, 2018 Fiscal Year Ended June 30, 2017 Fiscal Year Ended June 30, 2016 Fiscal Year Ended June 30, 2015 Fiscal Year Ended June 30, 2014 Schedule 18
City of Solvang
Ten Largest Principal Employers
Last Nine Fiscal Years
Fiscal Year Ended June 30, 2022 Fiscal Year Ended June 30, 2021 Fiscal Year Ended June 30, 2020 300
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General government:

City Council (Stipend)1 - - - - - - - - - -
City clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - 1.00
City attorney (Contract)2 - - - - - - - - - -
City manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Economic development - - - - - - - - - -
Finance/Admin 5.00 5.00 5.00 5.00 5.00 5.00 5.00 3.00 6.00 4.00 Public safety2:

Police (Contract)- - - - - - - - - -
Fire - - - - - - - - - -
Planning:

Planning 1.75 2.22 2.22 2.22 2.22 2.25 2.25 - - 1.00
Building and safety2 0.75 0.90 0.90 0.90 0.90 0.95 0.95 - - - Public works:

Engineering 0.60 0.65 1.20 1.20 1.55 2.10 2.10 1.20 1.00 0.20 Roads and streets 3.78 3.95 4.05 4.05 3.85 4.05 4.05 3.00 4.65 2.50 Maintenance 2.58 2.51 2.51 2.51 2.51 1.65 1.65 1.05 3.15 2.30 Parks:

Parks and recreation 5.84 5.84 5.84 5.84 5.81 5.30 5.00 2.00 4.00 2.00 Water:

Treatment and distribution 5.10 5.00 5.15 5.15 5.10 5.05 5.05 4.90 5.05 5.05 Wastewater:

Collection and treatment 7.10 6.90 7.10 7.10 7.00 6.95 6.95 5.85 6.95 6.95 Totals 34.50 34.97 35.97 35.97 35.94 35.30 35.00 22.00 31.80 26.00 Source: The City of Solvang Finance Department.
1) City Council are elected officials, not employees and therefore not represented. 2) No full-time equivalent employees are shown for Police, Fire, City Attorney and previous years of Building and Safety as the City had contracts for those services.

Schedule 19
City of Solvang
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Fiscal Year
301
FunctionProgram
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Police
1:

Physicalarrest
123
96 102
126
136
107
154
178
105
173
Tr afficviolations
105
125
67 41
94 81
51 99
102
116
Fi re
1: Emergencyresponses
197
430
358
615
652
678
845
598
652
660
Fi resextinguished399
12 129
17 11
117
Pl anning
Buildingpermitsissued
215
218
146
230
212
208
205
181
256
174
PublicWorks
St reetMaintenanceCenterlineMiles

0. 66

0. 44

4. 00

0. 08

3. 00

3. 40

3. 40
Parks
Co mmunityeventsheld
18 21
21 17
14 14
1493
11 Water
Nu mbernewconnections
25 38
40 33
142114
Da ilyaveragewater
pr oductioninMGD

1. 38

1. 05

0. 94

0. 98

1. 10

1. 07

1. 14

1. 23

1. 16
Da ilyaveragewater
consumptioninMGD

1. 26

0. 96

0. 86

0. 89

1. 05

0. 98

1. 01

1. 17

1. 09
Wastewater
Nu mbernewconnections
26 35
43 33
1421114
Da ilyaveragetreatment
inmilionsgalonsMGD

0. 75

0. 71

0. 69

0. 62

0. 65

0. 62

0. 65

0. 66

0. 62

0. 63
SourceCityofSolvangFinanceDepartmentandCountyofSantaBarbara 1TheCityofSolvangcontractswiththeCountyofSantaBarbaratoprovidepoliceservicesTheCityiswithintheCountyjurisdictionforfireservices Fi scalYear
Schedule20
Ci tyofSolvang
Op eratingIndicatorsbyFunctionProgram
LastTenFiscalYears
302
Function/ Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fire1
Stations - - - - 0 0 0 0 0 0
Engines - - - - 0 0 0 0 0 0
Public Works:

Miles of streets 25 25 25 25 25 25 25 25 25 25
Streetlights 12 12 12 12 12 12 12 12 12 12
Parks and recreation:

Community centers 2 2 2 2 2 2 2 2 2 2
Parks 4 4 4 4 4 4 4 4 4 4
Park acreage 63 63 63 63 63 63 63 63 63 63
Water:

Miles of mains 35 36 36 36 36 36 36 36 36 36
Number connections 2,044 2,156 2,178 2,211 2225 2227 2228 2228 2228 2032 Wastewater:

Miles of sewers 42 42 42 42 42 42 42 42 42 42
Number connections 2,011 2,047 2,090 2,123 2137 2139 2140 2141 2141 2145 Maximum plant capacity 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 in millions of gallons
Source: City of Solvang Finance Department and the County of Santa Barbara 1) The City of Solvang contracts with the County of Santa Barbara to provide police services. The City is within the County jurisdiction for fire services.

Fiscal Year
Schedule 21
City of Solvang
Capital Asset Statistics by Function/ Program
Last Ten Fiscal Years
303
City of Solvang
Presentation to City Council
January 23, 2023
Presented by: Ahmed Badawi, CPA
Partner
304
Badawi Associates
Audit of the
City of Solvang
1 305
Agenda
Engagement Team
Deliverables and Scope of the Audit
Areas of Primary Emphasis
Auditors Report and Financial Statements
Required Communications
New Accounting Standards
Conclusion Discussion/ Questions
2 306
Engagement Team
3 307
Engagement Team
Engagement
Partner
Ahmed Badawi,
CPA
Quality Control
Reviewer
4 Senior
Saleh Yassin,
CPA
Staff
Lyndsey Felice
Manager
Mitesh Desai,
CPA
308
Deliverables and Scope of the Audit
Report of Independent Auditors on City of Solvang Annual Comprehensive Financial Report ACFR)
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Agreed Upon Procedures Appropriations Limit
Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in
Accordance with the Uniform Guidance
Communications With Those Charged With Governance
Letter used to summarize communication of various
significant matters to those charged with governance.
5 309
Theriskofmanagementoverrideofcontrolsisaddressedbythe
following procedures:

Assignment of audit staff based on consideration of audit risk.

Procedures to incorporate an element of unpredictability in the audit from period to period.

Consideration of the selection and application of significant accounting principles.

Examination of journal entries.

Review of accounting estimates for bias.

Evaluation of business rationale for unusual transactions.

Evaluation of the appropriateness of fraud-related inquiries performed.
6 Areas of Primary Audit Emphasis
310
Revenues & Receivables : ( Tax, Grants, Notes and others): Improper revenue recognitions
Governmental Funds:

Confirmed/ validated property taxes, sales taxes, franchise taxes & other significant revenues/ receivables.

Proprietary Funds:

Performed analytical procedures and trends analysis on
revenues and related receivables.

Pension: Complex accounting standards
Reviewed journal entries for pension.

Reconciled amounts recorded to reports provided by CalPERS.

Tested the census information used by CalPERS.

Obtained reports from CalPERS auditors regarding plan assets and census data.
7 Areas of Primary Audit Emphasis
311
8 312
Auditors Report
Unmodified opinion
Audit performed in accordance with Generally
Accepted Auditing Standards, and Government
Auditing Standards, and the Uniform Guidance
Financial statements are fairly presented in all material respects
Significant accounting policies have been consistently
applied
Estimates are reasonable
Disclosures are properly reflected in the financial
statements
9 313
10314
Government Wide Financial Statements
11 Cash
Investments
Receivables
Capital
Assets
Other Assets
Deferred Outflow
of Resources
2020 $ 24,433,586 $ 2,094,532 $ 24,218,197 $ 2,664,525 $ 1,422,497 2021 $ 25,086,152 $ 2,631,681 $ 24,296,253 $ 3,446,585 $ 1,161,856 2022 $ 26,214,157 $ 2,960,463 $ 26,853,396 $ 2,831,198 $ 1,175,820 5 10
15 20
25 30
Mi
l
l
i
o
n
s
Assets and Deferred Outflow of Resources Page 34)
315
Government Wide Financial Statements
Accounts
Payable and
Accrued
Expenses
Deposits
Payable
Unearned
Revenues
Long Term
Liabilities
Net Pension
Liability
Net OPEB
Liability
Deferred
Inflows of
Resources
2020 $ 745,234 $ 3,529 $ 32,448 $ 285,770 $ 4,310,393 $ 2,024,744 $ 483,766 2021 $ 1,492,756 $ 1,384 $ 29,183 $ 192,087 $ 4,695,870 $ 1,526,396 $ 781,861 2022 $ 695,102 $ 65,404 $ 28,007 $ 265,748 $ 2,596,064 $ 1,395,429 $ 3,274,718

0.8 1.5

2.3 3.0

3.8 4.5

5.3 Mi
l
l
i
o
n
s
Liabilities and Deferred Inflows of Resources (Page 35) 12316
Government Wide Financial Statements
Net Investment in
Capital Assets
Restricted Unrestricted
2020 $ 24,218,197 $ 3,435,769 $ 19,157,197
2021 $ 24,296,253 $ 3,545,533 $ 19,924,914
2022 $ 26,853,396 $ 3,390,500 $ 21,470,666
5 10
15 20
25 30
Mi
l
l
i
o
n
s
Net Position (Page 35)
13317
Government Wide Financial Statements
2,025,890)
957,490
3,947,862
2,500,000.0)
1,500,000.0)
500,000.0)
500,000.0
1,500,000.0
2,500,000.0
3,500,000.0
4,500,000.0
2020 2021 2022
Changes in Net Position Page 36 37)
14318
Government Wide Financial Statements
2020 2021 2022
Net Cost of Service $ 8,510,502 $ 6,124,881 $ 5,943,182 Tax Revenue $ 6,542,010 $ 7,515,581 $ 10,062,426
2 4
6 8
10 12
Mi
l
l
i
o
n
s
Net Cost of Service to Tax Revenue Page 37)
15319
General Fund
Expenditure Coverage Page 42 44)
16 2020 2021 2022
Unrestricted Fund Balance 9,991,642$ 11,537,201$ 14,290,009$ Total Expenditures 9,217,483$ 7,461,974$ 9,171,052$
Unrestricted Fund Balance as
a % of Total Expenditures 108.40% 154.61% 155.82%
Number of months 13 19 19
GFOA recommendation
Measure of City's ability to operate with no revenues using available fund balance.

No less than 2 months
320
Pension Plan
City’s Annual Pension Contributions Page 92)
17 2020 2021 2022
Annual Pension
Contributions $
369,421 $ 400,915 $ 471,400
100
200
300
400
500
Th
o
u
s
a
n
d
s
321
Pension Plan
18 Plan Assets Pension Liability Net Pension Liability
6/30/ 2020
2019 Measurement Date)$
13,595,591 $ 17,905,984 $ 4,310,393
6/30/ 2021
2020 Measurement Date)$
14,346,522 $ 19,042,392 $ 4,695,870
6/30/ 2022
2021 Measurement Date)$ 17,678,892 $ 20,274,956 $ 2,596,064 3 6
9 12
15 18
21 24
Mi
l
l
i
o
n
s
City’s Pension Plan Funded Status Page 90)
322
19 Net Pension Liability

6.15%$ 5,274,593

7.15%$ 2,596,064

8.15%$ 382,209
2 4
6 Mi
l
l
i
o
n
s
City’s Pension Plan Sensitivity to Discount Rate
2021 Measurement Date) Page 83)
Pension Plan
323
Other Postemployment Benefits
City’s Annual OPEB Contributions
20 2020 2021 2022
Annual OPEB
Contributions $
204,647 $ 214,130 $ 220,797
50 100
150
200
250
Th
o
u
s
a
n
d
s
324
Other Postemployment Benefits
21 Plan Assets Actuarial Liability
Unfunded
Liability
6/ 30/ 2020
2019 Measurement Date)$
705,736 $ 2,730,480 $ 2,024,744
6/ 30/ 2021
2020 Measurement Date)$
814,801 $ 2,341,197 $ 1,526,396
6/ 30/ 2022
2021 Measurement Date)$
1,045,642 $ 2,441,071 $ 1,395,429

0.5 1.0

1.5 2.0

2.5 3.0
Mi
l
l
i
o
n
s
City’s OPEB Funded Status Page 94)
325
22 5.25% 6.25% 7.25%
Net OPEB
Liability $
1,689,989 $ 1,395,429 $ 1,149,378

0.5 1.0

1.5 2.0
Mi
l
l
i
o
n
s
City’s OPEB Plan Sensitivity to Discount Rate
2020 Measurement Date) Page 87)
Other Postemployment Benefits
326
Other Postemployment Benefits
23 3% 4% 5%
Net OPEB
Liability $
1,110,845 $ 1,395,429 $ 1,753,024

0.5 1.0

1.5 2.0
Mi
l
l
i
o
n
s
City’s OPEB Plan Sensitivity to Healthcare Trend Rate
2020 Measurement Date) Page 87)
327
24328
Required Communications
Our Responsibility Under
U.S GAAS
Opinion on whether financial
statements are fairly stated in
accordance with U.S GAAP
Evaluate internal control over
financial reporting including tone
at the top
Evaluate compliance with laws,
contract and grants
Ensure financial statements are
clear and transparent
Communicate with the governing
body
25 Management Responsibility
Management is responsible for the
financial statements
Establish and maintain internal control
over financial reporting
Making all financial records available to
us
Adjust the financial statements to
correct material misstatements
Establish internal control to prevent
and detect fraud
Inform us of all known and suspected
fraud
Comply with laws and regulations
Ta ke corrective action on audit findings
329
Required Communications
Independence
Timing of the Audit
It is our responsibility to maintain
independence
We will maintain our independence by strict
adherence to the AICPA and the Board of
Accountancy rule
Other than compiling the financial
statements, no other services performed that
could affect our independence
Within the time frame communicated to the
City in our engagement letters
26330
Required Communications
27 The City adopted the following
pronouncements during the year:

GASB Statement No. 87, Leases
GASB Statement No. 89, Accounting for
Interest Cost Incurred before the End of a
Construction Period
GASB Statement No. 92, Omnibus
GASB Statement No. 99, Omnibus 2022
Significant Accounting
Policies and Unusual
Transactions
Management Judgment
and Accounting
Estimates
Depreciation expense and related
accumulated depreciation
Defined benefit Pension and OPEB plans
actuarial assumptions)
Sensitive Disclosures • Summary of Significant Accounting Policies Cash and Investments
Capital Assets
Pension Plan
Other Post employment Benefits
331
Difficulties Encountered in
Performing the Audit
None.
28 Significant Audit Adjustments and
Unadjusted Differences Considered
by Management to be Immaterial
Potential Effect on the Financial
Statements of Any Significant Risks
and Exposures
Management posted all proposed audit
adjustments.

No significant risks or exposures were
identified. Legal matters and potential
liabilities are disclosed in the financial
statements.

Disagreement with Management
Deficiencies in Internal Control over
Financial Reporting
None.

No material weaknesses identified; however,
we identified one significant deficiency
relating to accounts payable vendor file
management.

Required Communications
332
Representations Requested of
Management
Management Consultation with
Other Accountants
We obtained representations from management prior
to issuance of our reports.

We are not aware of any significant accounting or
auditing matters for which management consulted
with other accountants.
29 Other Material Written
Communications
Material Uncertainties Related
to Events and Conditions
Fraud and Illegal Acts
Other than the engagement letters and
management representation letters, there have
been no other significant communications
There were no material uncertainties related to
events and conditions.

We did note that the City had lost funds during
the year as a result of a phishing attack, no other
matters were identified.

Required Communications
333
New Accounting Standards
30 GASB Statement No. 91 – Conduit debt
GASB Statement No. 94 – Public-private partnerships
GASB Statement No. 96 – Subscription-Based Information Technology Arrangements
2024
2023
GASB Statement No. 100 – Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
2025 • GASB Statement No. 101 – Compensated Absences
334
Questions
Ahmed M. Badawi
[email protected]
31335
Thank You
For Allowing Us to Provide Audit Services
to the City of Solvang
32336
Agenda Item: 6.d
Solvang City Council STAFF REPORT
PREPARED BY: Rodger Olds, Public Works Director/ City Engineer Sophia Checa, Planning Manager
Laurie Tamura, Planning Consultant
MEETING DATE: January 23, 2023
SUBJECT: Discussion and possible action to provide direction and comment on the public review draft of the Housing Element
RECOMMENDATION:

That the City Council discuss and provide direction and comments to staff on the Public Comment Draft of the Housing Element of the General Plan.

DISCUSSION:

Over the last two years, City of Solvang has been working with consulting group Mintier Harnish to update all the elements of the City of Solvang General Plan. The city has updated various elements, particularly the Housing Element, when required by State Law.

A requirement to update the Housing Element is currently mandated by the State of California. The City did not begin the update of this element until the state and the county approved the Regional Housing Need Assessment ( RNHA) numbers for 2022-2031 in early 2022. The City of Solvang housing assignment is 191 units. Through the Housing Element, the city must show how we can provide those unit through projects in process ( pending/ approved projects), e.g., 539 Alisal Road, or through the rezoning of vacant land (sites inventory).

Source: Page H-107 of the public review draft of the Housing Element 337
The first draft of the Housing Element was provided to City Staff in early October. Staff provided the City Council with a draft of the Housing Element, not the Public Review Draft, with the other Elements of the General Plan at the meeting on December 12, 2022.

HCD set a deadline of February 15, 2023 for each jurisdiction in Santa Barbara County to submit the approved final, certified Housing Element. Along with numerous jurisdictions in California, the City of Solvang will not be meeting the deadline because the following several steps need to occur:

1. 30-day public comment period: The 30-day review period ended on January 15th.

2. Response to public comments: The consultants take 10-days to prepare responses to the public comments and amend the Housing Element accordingly. This effort is currently underway.

3. City Council review of the public review draft of the Housing Element and public comment received during the 30-day public comment period: Staff is presenting the public review draft of the Housing Element and all comments received to the City Council for their meeting on January 23, 2023. The consultants will be attending the meeting virtually and have a presentation.

4. Submittal to HCD and initiation of the Environmental Impact Report: Staff has targeted the City Council meeting of February 13, 2023 have City Council provide direction to staff to file the Draft Housing Element to HCD for preliminary review on February 15, 2023 and authorize the start of the Environmental Impact Report (EIR) of the General Plan Elements.

5. Environmental Impact Report Process ( estimated 8-15 months): The consultants will take about five to nine months to prepare the Draft EIR. After the EIR is drafted, there will be an approximately one-month block of time for city staff and the consultants to review and edit the draft EIR then there will then be a 45-day public review period. Within this 45-day period, there will be a public workshop to gather public comment. At the end of the public review period, the consultants and city staff will have about one month to respond to public comment received.

6. Public review of General Plan Elements and EIR (estimated 4 months): Once the EIR process is completed and hearing Draft EIR is ready for Public Hearing, staff will have meetings with the GPAC, Design Review Committee, Planning Commission, and the City Council for final approval.

7. Approve and file the final, certified Housing Element: Based on the above timeline the approved Final Housing Element will be final with HCD in the spring of 2024. 30-Day Public Comment Period
The required 30-day public review period of the Housing element, the HNA, and AFFH began on December 19th and closed on January 18th. The consultants are currently working to address the comments received. At the date of this writing 51 comments had been received by staff. The written comments received by staff are included as Attachment A.

Most comments focused on the 4.48-acre vacant parcel of Site C at the intersection of Old Mission Road and Alamo Pintado Road. Site C is comprised of two legal vacant parcels, a 1-acre parcel and a

4.48-acre vacant parcel. The lot is currently zoned as 20-R-1, and the City’s goal is to rezone to DR-20, which will increase the density of any development there. 338
Commenters ask that the 4.48-acre parcel not be included in the housing element due to a variety of concerns including, but not limited to, the poor soil quality, the steepness of the parcel, the increase in traffic and noise, impact to scenic vistas, impact on the historic Mission Aqueduct, and impact of water and sewer due to higher demand. Comment also stated that Solvang is planning for unnecessary units, particularly moderate and above moderate units, rather than necessary affordable units. The concern by commenters is that the cost of developing this lot will mean affordable units are not actually provided.

One comment was spoke to the entirety of Site C, the 4.48-acre and 1-acre vacant parcels. The commenter’ s family owns the property, and they are “committed to building housing on this site in a way that preserves and even enhances the character of Solvang.” Staff also received two comments regarding the inclusion of the vacant lot at Kanin Hoj and Alamo Pintado, identified as Site A in the draft Housing Element. The property owner notified City Staff in December that she did not want the lot rezoned, which means it cannot be included in the Housing Element. The City could still opt to rezone the property through the Land Use Element, however, the potential units cannot be included in the Housing Element due to the owner’ s letter.

There were several comments regarding inconsistencies and errors throughout the document, particularly with some of the tables. Staff will check the updated version of the Housing Element against these comments.

The consultants will virtually attend the meeting on January 23, 2023 to discuss the process of developing the Housing Element, what HCD expects from jurisdictions, and the public comment.

ALTERNATIVES:

Council can provide direction, including requesting changes, to staff regarding the timing of the review of the Public Comment Draft of the Housing Element or the entire General Plan document.

FISCAL IMPACT:

There is no fiscal impact currently. The City Council approved a General Plan Update contract in 2020 with two amendments for a total of almost $ 700,000.00. There may be an additional contract amendment as this project moves through the next 18 months.

ATTACHMENTS:

A – Public Review Draft Housing Element ( this is different than the draft provided at the December 12, 2022 meeting)
B – Public Comments received during the 30-day Public Review Period through 1/17/2023 C – December 12, 2022 Staff Report
339
Housing
Policy Document
State law recognizes the vital role that local governments play in the supply and affordability of housing. Each jurisdiction’ s governing body (in the case of Solvang, the City Council) is required to adopt a comprehensive, long-term plan ( the General Plan) for the physical development of the city or county. An element of the City’s General Plan, the Housing Element is the City's plan for addressing housing needs in Solvang through 2031.

This Policy Document states the City’s goals, policies, implementing programs, and quantified objectives for the development, rehabilitation, and preservation of housing. 9 340
H-2 | Public Review Draft Policy Document, December 2022 Key Terms
High opportunity areas: Synonymous with “ high resource areas,” high opportunity areas are areas most strongly associated with positive economic, educational, and health outcomes for low-income families – particularly longterm outcomes for children – when compared to other neighborhoods in the same region. These areas are defined within the Affirmatively Furthering Fair Housing analysis.

Housing mobility: The ability of a household to access housing and opportunity within a community. Programs that work to enhance housing mobility work to improve housing choice and access to high opportunity areas.

Low barrier navigation center: A "Housing First," low barrier, temporary, serviceenriched shelter that helps homeless individuals and families to quickly obtain permanent housing.

Missing middle housing: A range of house- scale buildings with multiple units— compatible in scale and form with detached single-family homes—located in a walkable neighborhood. Missing middle housing types provide diverse housing options, such as duplexes, fourplexes, cottage courts, and townhomes.

Place- based strategies: Actions that target the specific circumstances of a place.

Regional Housing Needs Allocation ( RHNA): The number of market rate and below market rate housing units that the California Department of Housing and Community Development ( HCD) determines are necessary to plan for in an 8- year housing cycle.

Supportive housing: Housing that combines non-time-limited affordable housing assistance with wrap-around supportive services for people experiencing homelessness, as well as other people with disabilities.

Transitional Housing: a supportive – yet temporary – type of accommodation that is meant to bridge the gap from homelessness to permanent housing, also known as interim housing.

Workforce housing: Housing affordable to households earning between 60 and 160 percent of area median income (AMI).
341

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-3 Introduction
Since 1969, California has required that all cities and counties adequately plan to meet the housing needs of everyone in the community. California’ s local governments meet this requirement by adopting housing plans as part of their general plan.” General plans serve as the local government’ s "blueprint" for how the city and/ or county will grow and develop and include seven required elements: land use, transportation, conservation, noise, open space, safety, and housing. Cities and counties with disadvantaged communities must also prepare an Environmental Justice policies, but this requirement does not apply to Solvang as there are no disadvantaged communities in the city.

California’s housing element law ( Government Code Section 65580 ( et seq.)) acknowledges that, for the private and non-profit market to adequately address the housing needs and demand of Californians, local governments must adopt plans and regulations that provide opportunities for and do not unduly constrain, housing development. As a result, housing policy in California rests largely upon the effective implementation of local general plans, particularly the housing element.

Although the Housing Element is one of seven required elements of the general plan, it has several unique requirements that set it apart from the other six. State law specifies in detail the topics that the housing element must address and sets a schedule for required updates every eight years. The housing element is also the only element reviewed and certified by the State for compliance with State law. The Department of Housing and Community Development ( HCD) is the State department responsible for this certification.

Housing Needs
For the 2023-2031 planning period, as with previous periods, the Santa Barbara County Association of Governments ( SBCAG), the regional government agency Solvang is a member of, assigned a portion of its Regional Housing Needs provided by HCD to the City of Solvang according to projected regional jobs growth over time, among other factors (for more detailed documentation of the methodology, see the Housing Resources section in the Needs Assessment).

The result of the process is Solvang’s Regional Housing Needs Allocation RHNA), which serves as a projection of housing needs during the 2022 -2031 planning period between February 15, 2023, and February 15, 2031.

The RHNA states that Solvang is projected to need 191 total units by 2031. The identified housing need is almost evenly split between lower-income and higherincome designations. 342
H-4 | Public Review Draft Policy Document, December 2022 Projected Housing Needs in Comparison to Nearby Jurisdictions Lower
Moderate
Above
Moderate
Total Extremely
Low
Very
Low
Low
Solvang 27 28 39 22 75 191
Buellton 55 37 30 43 165
Lompoc 166 262 311 1,509 2,248
Santa Barbara 2,147 1,381 1,441 3,032 8,001
Santa Barbara
County
5,799 3,935 4,397 10,725 24,856
Source: SBCAG, HCD Pre-approved Data Package, State of California Department of Housing and Community Development, 2021.

The 2023-2031 Housing Element establishes a comprehensive plan to address the current and projected needs of Solvang residents through community goals and policies surrounding the development, rehabilitation, and preservation of housing units. Solvang, along with other constituent jurisdictions of SBAG, are required to submit an updated Housing Element to HCD by February 15, 2023.

Consistency with the General Plan
California Government Code Section 65300.5 requires that a general plan be internally consistent, meaning that no conflicts exist among the elements of the plan. Government Code section 65583(c) requires that a Housing Element describe how consistency has been achieved among the general plan elements.

The most important aspect of consistency among general plan elements is that policies and implementation measures do not conflict but support one another to achieve the overall goals and vision of a general plan.

In preparing the 2023-2031 Housing Element, the City is also concurrently drafting a comprehensive General Plan update. Throughout the development of the Housing Element and General Plan Updates, City staff and decision- makers reviewed each Element to ensure consistency amongst Elements as well as with the General Plan Vision and Guiding Principles. Additionally, if the General Plan is amended during the planning period, the City will review the Housing Element for internal consistency and make any necessary revisions. 343

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-5 Associated General Plan Element Updates
California Government Code 65302 et seq. requires that the Safety Element be revised upon the adoption of the Housing Element to identify updated information regarding flood and fire hazards and evacuation routes. The City is updating the General Plan, including the Safety Element concurrent with the Housing Element Update.

California Government Code 65302 also requires that cities and counties with disadvantaged communities update the Environmental Justice Element to identify objectives and policies to reduce the unique or compounded health risks in disadvantaged communities, promote civic engagement, and prioritize improvements and programs that address the needs of disadvantaged communities. The City does not have any identified disadvantaged communities as defined by California Government Code 65302( h) et seq. Therefore, the City is not required to draft an Environmental Justice Element and/ or Disadvantaged Communities Element.

Components of the Housing
Element
The 2023-2031 Housing Element Update consists of two parts: the Housing Needs Assessment ( Needs Assessment) and the Housing Element Policy Document.

1. The Needs Assessment identifies and analyzes the existing and projected housing needs, provides a list of sites for housing development that are adequate to accommodate the City’s regional housing needs allocation, documents constraints to housing production, and analyzes fair housing issues, locally and regionally. In short, the Housing Needs Assessment provides the context for the City's housing action plan.

2. The Policy Document states goals, policies, implementing programs, and quantified objectives for the development, rehabilitation, and preservation of housing. The Policy Document is the action plan that responds directly to the findings of the Housing Needs Assessment and input from the community. The City will implement the actions specified in the Policy Document throughout the eight-year planning period.
344
H-6 | Public Review Draft Policy Document, December 2022 Quantified Objectives
Quantified Objectives by Type
One of the requirements of State law ( California Government Code, Section 65583[b]) is that the Housing Element contains quantified objectives for the maintenance, preservation, improvement, and development of housing. State law recognizes that the total housing needs identified by a community may exceed available resources and the community' s ability to satisfy this need. Under these circumstances, the quantified objectives need not be identical to the total housing needs, however, the quantified objectives shall establish the number of housing units by income category that can be realistically constructed, rehabilitated, and conserved. The City has established quantifiable objectives in implementation programs throughout the policy document. This section identifies the City’s housing need ( the Regional Housing Needs Allocation, or RHNA) and summarizes new construction, conservation, and special needs housing objectives for the 2023-2031 planning period.

Projected Housing Needs ( Regional Housing Need Allocation) Extremely
Low
0-30% of
Median
income
Very Low
30-50%
of Median
Income
Low
50-80%
of Median
Income
Moderate
80-120%
of Median
Income
Above
Moderate
120% of
Median
Income
Total
Solvang 28 27 39 22 75 191
New Construction Objectives
Income Category Units Units by type Total Units
Extremely lowincome
20 units
90 lower-income
units
208 total units
Very low-income 30 units
Low-income 40 units
Moderate- income 58 units 118 moderate and
above-moderate
units
Above moderateincome
60 units
345

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-7 Rehabilitation and Conservation Objectives
Conservation of all 136 manufactured/ mobile home units. (Program D) Rehabilitation of three extremely low-, eight very low-, and eight low-income units (Programs A, B)
Preservation of 5,466 Housing Choice Vouchers administered countywide Program C)
Assistance for Special Needs Households
30 units of senior housing (Programs K and Q)
30 units for persons with a disability (Programs K and Q) 40 units for local workforce housing ( Program F)
Quantified Objectives Summary Table
The City will strive to exceed the following targets for affordable housing development in Solvang.

Ex
t
r
e
m
e
l
y
Lo
w
Ve
r
y
L
o
w
Lo
w
Mo
d
e
r
a
t
e
Ab
o
v
e
Mo
d
e
r
a
t
e
To
t
a
l
New Construction 20 30 40 58 60 208
Rehabilitation 3 8 8 0 0 19
Conservation/ Preservation1 45 45 46 0 0 136
1 Conservation goals are derived from Program D. Units have been distributed evenly across income categories.
346
H-8 | Public Review Draft Policy Document, December 2022 Goals, Policies, and
Implementation Programs
Goal H-1:

Conserve and improve the quality of existing housing and residential neighborhoods in Solvang. ( Source: Existing Goal 1)
Policies
H-1.1: Citizen Involvement. The City shall encourage citizen involvement in addressing the maintenance and improvement of the City's housing stock by providing notices for proposed changes to existing housing as required by state law. [Source:

Existing Policy 1.1, modified]
H-1.2: Residential Rehabilitation. The City shall encourage homeowners and landlords to maintain properties in sound condition through code enforcement efforts and by
implementing a residential rehabilitation assistance program.

Source: Existing Policy 1.2]
H-1.3: Community Design. The City shall preserve and retain the city's historical and architecturally unique buildings and
neighborhoods, particularly in the Village Area. existing residential units within the Village Area may be retained for residential use and can incorporate commercial components with the residential unit on the site. . [Source: Existing Policy 1.3, modified]
H-1.4: Affordable Housing. The City shall maintain the city's existing stock of affordable housing, including mobile homes, through a review of City regulations including zoning and other forms of assistance. [Source: Existing Policy 1.4, modified]
H-1.5: Maintenance of Residential Properties. The City shall cooperate with housing providers in the acquisition, rehabilitation, and/ or maintenance of residential properties for housing. [ Source:

Existing Policy 1.5, modified]
347

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-9 Goal H-2:

Facilitate the development of a range of housing types, densities, and affordability levels to meet the diverse needs of the community. ( Source:

Existing Goal 2)
H-2.1: Housing for All Residents. The City shall encourage the production of housing that meets the needs of all economic segments, including homeless and extremely low, lower,
moderate, and above moderate- income households, to achieve a balanced community. [Source: Existing Policy 2.1]
H-2.2: Expanding Workforce Housing. The City shall encourage housing opportunities for the city's workforce, including seasonal and part-time workers in the tourism sector and public service employees. The City will encourage housing
opportunities and assistance to address the needs of local workers. [ Source: Existing Policy 2.2, modified]
H-2.3: Affordable Senior Housing. The City shall continue to facilitate the provision of affordable housing for the city's growing senior population, including senior housing with supportive services, assisted living facilities, and second units. [ Source: Existing Policy 2.4]
H-2.4: Support Special Housing Needs. The City shall support, as feasible, non-profit and for-profit agencies who provide supportive services and alternative housing options for the homeless and other persons with special housing needs in Solvang. [Source: Existing Policy 2.5, modified]
H-2.5: Universal Design. The City shall encourage the provision of housing adaptable to the physically disabled through integration of universal design features in new development, and
compliance with Title 24 of the California Health and Safety Code. [Source: Existing Policy 2.6, modified]
H-2.6: Home Ownership Assistance. The City shall work with local organizations that identify and pursue State, Federal, and other funding sources to enable home ownership for low- and
moderate-income households. [ Source: Existing Policy 2.7, modified]
H-2.7: Home Ownership Education. The City shall work with local organizations to encourage first time homebuyers from low- and 348
H-10 | Public Review Draft Policy Document, December 2022 moderate- income households to participate in home ownership assistance programs available from public agencies and in the private market. [Source: Existing Policy 2.8, modified] H-2.8: Encouraging Accessory Dwelling Units ( ADUs)/ Junior Accessory Dwelling Units ( JADUs). The City shall allow ADUs and JADUs as a means of providing additional housing
opportunities in existing neighborhoods as provided by state law. [Source: Existing Policy 2.9, modified]
H-2.9: Rental Assistance. The City shall continue to support local organizations that provide rental assistance to extremely low and lower-income households and encourage property- owners to list units with the Santa Barbara County Housing Authority.

Source: Existing Policy 2.11, modified]
H-2.10: Special Needs Housing. The City shall support the development and conservation of housing that meets the special needs of large families, families with children, seasonal workers, persons with disabilities, elderly persons, homeless, and agricultural workers. [ Source: Existing Policy 5.3, modified]
Goal H-3:

Designate adequate sites through appropriate land use and zoning standards to accommodate the City's share of regional housing needs.

Source: Existing Goal 3]
H-3.1: Village Area Mixed- Use. The City shall encourage mixed-use development in the Village Area (TRC zone).. The City shall allow existing residential uses to remain residential as a primary use or incorporate commercial components. [Source: Existing Policy

3.2, modified]
H-3.2: Efficient Land Use. The City shall encourage efficient use of the City’s limited land resources by promoting development at the upper end of permitted General Plan/ Zoning Ordinance
densities and by facilitating quality infill development that utilizes existing infrastructure. This may mean that setbacks, landscaping, and parking standards may be modified on a project specific basis. [Source: Existing Policy 3.4, modified] H-3.3: Height. The City shall encourage residential development to a maximum height of 35 feet. [Source: New Policy]
349

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-11 Goal H-4:

Where appropriate, mitigate or remove potential governmental constraints to housing production, homeless facilities, and affordability.

Source: Existing Goal 4]
H-4.1: Affordable Housing Incentives. The City shall follow state law and provide density bonuses with flexibility in site development standards to encourage new construction of housing to
accommodate the City's share of regional housing needs.

Source: Existing Policy 4.1, modified]
H-4.2: Monitor Governmental Constraints. The City shall amend the existing city ordinance to be consistent with State Housing Laws. . [Source: Existing Policy 4.2, modified]
H-4.3: Maintain Critical Infrastructure . The City shall maintain adequate public services and infrastructure to facilitate the City's share of regional housing needs. The City shall update the AB 1600 Development fee program with focus on the fees
applied to affordable housing units. [Source: Existing Policy 4.3, modified]
H-4.4: Energy Efficiency. The City shall allow the installation of energy efficient devices in existing housing and use of energy efficient designs for new housing per State Building Codes. [ Source:

Existing Policy 4.4, modified]
Goal H-5:

Promote fair and equal housing opportunities for all residents of Solvang.

Source: Existing Goal 5 ]
H-5.1: Equal Housing Opportunities. The City shall continue to support agencies that support equal housing opportunities for all residents of Solvang. [ Source: Existing Policy 5.1, modified] H-5.2: Fair Housing Organizational Support. The City shall continue to support public and private organizations that enforce fair housing laws prohibiting arbitrary discrimination in the building, financing, selling, or renting of housing based on race, sex, age, sexual orientation, religion, family status, ethnic background, disability, or other such factors and provide mediation services to Solvang residents. [ Source: Existing Policy 5.2]
350
H-12 | Public Review Draft Policy Document, December 2022 H-5.3: Public Investments. The City shall ensure public investments are equitably distributed throughout the community. [ Source:

New Policy]
351

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-13 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
Housing and Neighborhood Conservation
HE-A Code Enforcement
The City shall continue to carry out zoning code enforcement activities, including performing property inspections and citing code violations, when necessary. The City shall also continue to contract with the California Code Check for the enforcement of building codes.

The City shall provide information regarding the Housing Rehabilitation Assistance to owners of housing units with code compliance issues.

The City shall provide direct technical assistance to lowerincome households dealing with code compliance issues.

Technical assistance may include, but is not limited to, one-onone assistance from staff with technical expertise or assistance with the rehabilitation loan program application. [ Source: Existing Program 1, modified]
Provide direct technical
assistance to at least 9
households with
substandard housing issues
that led to code compliance,
including:

Three extremely lowincome households
Three very low-income
households, and
Three low-income
households
H-1.2: Planning Division, Building
Division
General
Fund
Assist three
households
by 2025, 6 by
2028, and 9
by 2031
352
H-14 | Public Review Draft Policy Document, December 2022 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE-B Housing Rehabilitation Assistance Program
To support the City’s code enforcement efforts and improve the condition of existing affordable and market rate housing stock, the City shall implement a home rehabilitation assistance program to assist low income and senior households, as funding becomes available. This program will use a portion of the HOME Investment Partnership Program ( HOME) and/ or Community Development Block Grant Program ( CDBG) funds that the City may apply for through its participation in the County HOME Consortium to assist homeowners in repairing or upgrading their homes for the purpose of preserving existing units. The City’s code enforcement officer shall identify substandard housing units that might qualify for HOME funding. Correcting code violations will be a top priority of the loan program. Additional actions taken by the City shall include:

A. The City shall advertise the availability of this program through brochures at City Hall, the Public Library, and by posting information on the City’s website.

B. The City shall annually investigate funding
opportunities in support of the Housing Rehabilitation
Assistance Program.

C. The City shall pursue two new funding opportunities in the planning period.

D. The City shall identify and engage local non-profit
agencies to identify local rehabilitation needs and
opportunities for partnerships to provide resources or
direct- assistance to lower-income households. [ Source:

Existing Program 2, modified]
Provide rehabilitation
assistance to:

Five very low-income
households, and
Five low-income
households
A. Provide program
information and
resources at City Hall,
Solvang Senior Center,
the Solvang Library, and
on the City’s website by
2024
B. Explore funding
opportunities annually
C. Pursue two new funding
opportunities in the
planning period.

D. Identify and contact
local non-profit agencies
bi-annually
H-1.2::

H-1.3:

H-1.4:

Planning Division United
States
Department
of Housing
and Urban
Development

HUD) HOME

HUD CDBG
Assist 10
households
by 2026, 10
by 2028, and
15 by 2031.

A. Post
information:
by 2024
B, Explore
funding:
annually
C. Apply for
new funding:
twice in the
planning
period
D. Biannually
353

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-15 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- C Rental Assistance
The City shall continue to support agencies providing rental assistance, including the Housing Authority of the County of Santa Barbara in the administration of the Housing Choice Voucher program, and shall support and encourage the provision of additional subsidies through the Housing Choice Voucher program. [ Source: Existing Program 3, modified]
Address the high cost of rent
for lower income households
by partnering with the
Housing Authority in the
administration housing
choice vouchers countywide
Engage with the Housing
Authority annually to discuss
opportunities to pursue
additional funds for rental
assistance programs
Provide informational
materials detailing existing
rental assistance programs
and available resources on
the City’s website by 2024
H-2.1:

H-2.4:

H-2.9:

Planning Division HUD –
Housing
Choice
Voucher

HUD HOME
Engage with
the Housing
Authority:
annually
Apply for
funding: as
available
Information
on City
website: by
2024
HE- D Mobile Home and Mobile Home Park
Preservation
The City shall continue to allow and preserve mobile home parks through its previously established Mobile Home Park ( MHP) designation under both its General Plan and Zoning Ordinance.

The City shall continue to allow mobile homes that adhere to the California Building Code as single-family residential use or accessory dwelling unit throughout the city. [Source: Existing Program 4]
Maintain the Mobile Home
Park ( MHP) designation
under both its General Plan
and Zoning Ordinance as a
means providing mobile
home as an affordable
housing option
Continue to allow mobile
homes that adhere to the
California Building Code, e.g.,
with permanent foundations,
as a single-family residential
use.

H-2.1: Planning Division General
Fund ( staff
time)
Ongoing
354
H-16 | Public Review Draft Policy Document, December 2022 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- E Preservation of Community Character
The City shall preserve, protect, and promote the unique Old World Danish design theme that is prevalent in the downtown Village Area. The City will maintain a regulatory framework to preserve and enhance the community’ s unique character.

The City shall develop Objective Design Standards to preserve and maintain the City’s old world Danish design theme specific to the Village Area, which is core to the local economy. [ Source:

Existing Program 5, modified]
Complete stakeholder
interviews with local
developers and architects to
inform design standards
Adopt objective design
standards for the Village
Area by 2025
Publicize the City’s adopted
design standards and review
processes related to the
Village Area on the City’s
website and at City Hall by
2025
H-1.3:

H-3.1:

Planning Division
Design Review Committee
DRC)
General
Fund ( staff
time)
All actions
and
objectives:
2024
Housing Production
HE-F Local Workforce Housing
The City will continue to work in partnership with both for- profit and non-profit developers, as well as the Housing Authority of the County of Santa Barbara, in providing affordable housing for working families in Solvang. The City shall encourage
partnerships in the pursuit of project- based funding and shall contact workforce housing developers and non-profit agencies to explore potential funding opportunities.

Source: Existing Program 6, modified]
Engage with workforce
housing developers and nonprofits annually
Create partnerships with
developers and/ or nonprofits in support of two
grant applications in the
planning period
Through partnership and
incentives, encourage the
development of:
20 very low-income
units
20 low-income units
H-2.1:

H-2.2:

Planning Division General
Fund ( staff
time), HOME,
CDBG
Engagement:
annually
Partnerships
in pursuit of
funding:

One by 2027
Two by 2030
Information
to website:
2023
355

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-17 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- G Density Bonus Program
The City shall continue to administer a Density Bonus Ordinance that incentivizes affordable housing according to California Government Code 65915.

The City shall create and revise, as necessary, an informational brochure describing the density bonus provisions and incentives.

Source: Existing Program 7, modified]
Publish an informational
brochure at City offices and
on the City website in 2023.

H-2.1:

H-2.2:

H-2.3:

H-2.10:

H-3.2:

Planning Division General
Fund ( staff
time)
2023
356
H-18 | Public Review Draft Policy Document, December 2022 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- H Accessory Dwelling Unit (ADU) and Junior
Accessory Dwelling Unit (JADU)
Development
The City shall adopt an Accessory Dwelling Unit Ordinance in compliance with State law, including AB 2299 ( 2016), SB 1069 2016), AB 494 (2017), SB 229 (2017), AB 68 (2019), AB 881 2019), AB 587 (2019), SB 13 (2019, and AB 671 (2019).

The City shall promote the development of ADUs and JADUs through outreach and education to residents and landowners.

The City shall:

A. Maintain and update informational brochures to
promote, educate, and assist homeowners with
developing ADUs and JADUs.

B. Create an information resource on the City’s website that provides information on ADUs, JADUs, and City
requirements.

C. Provide a step-by-step guide and assistance links to necessary applications and information.

D. Work with developers to incorporate ADUs and JADUs
into new single-family developments
E. Engage with local builders and homeowners to explore potential incentives to encourage the development of
ADU and JADU development in low density high
opportunity areas, in line with the City’s goals to
affirmatively further fair housing.

Source: Existing Program 8, modified]
Adopt an ADU and JADU
ordinance in compliance with
state law in 2023
Through engagement and
outreach, as well as direct
incentives, encourage the
construction of 64 ADUs or
JADUs during the planning
period
Engage with local developers
by 2025
Provide information on ADUs
and JADUs at Solvang Senior
Center and the Solvang
Library, on the City website
and at City Hall
H-2.1:

H-2.8:

Planning Division General
Fund ( staff
time)
Update
municipal
code: 2023
A: 2023 with
annual
updates
B: 2024
C: Ongoing
D: by 2025
357

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-19 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- I Application for Grants and Loans
The City shall continue to investigate potential funding sources for housing and will apply for available grants and loan programs. The City shall keep a database of available funding opportunities and support local non-profit and/ or for-profit entities applying for funding The City shall post the list of available funding opportunities on the city website and update it annually.

Source: Existing Program 11, modified]
Maintain and regularly
update a database of funding
opportunities
Promote funding
opportunities available to
local developers on the City
website
Apply for a minimum of one
new funding opportunity in
support of affordable
housing development within
the planning period
H-2.3:

H-2.4:

H-2.6:

H-2.9:

H-2.10:

Planning Division General
Fund ( staff
time)
Database:
2023 with
annual
updates
Information
to website:
2024
Apply for
funding:
once in the
planning
period
Provision of Adequate Sites for Housing
HE- J Adequate Sites Program
To provide adequate sites to fulfill the City’s Regional Housing Needs Allocation, the City expanded the development capacity of residential property through zoning designation changes. The City shall monitor housing production and rezone parcels during the planning period to maintain adequate sites for housing for all income categories throughout the planning period, in
compliance with the “no net loss” provisions of Government Code Section 65863.

Lower-income sites included in the housing sites inventory with a proposed zoning change, shall be rezoned, incompliance with Govt. Code Section 65583. 2(h) and (i), to:
permit owner- occupied and rental multifamily uses by-right without discretionary approval) for developments in which 20 percent or more of the units are affordable to lower income households.
accommodate a minimum of 16 units per site; and
Monitor development in
accordance with Govt. Code
65863
Rezone sites in accordance
with 65583. 2(h) and (i)
Publicize and annually
update a public-facing
inventory of available sites in
compliance with 65583. 2(c)
Update and submit an
electronic copy of the
available sites inventory to
HCD annually with the
Housing Element Annual
Progress Report ( APR), as
required by SB 6 (2019) and
H-3.2: Planning Division General
Fund ( staff
time)
Monitor
development:
annually
Rezones:
within three
years of the
adoption
deadline
Public-facing
inventory:
2023
Electronic
submission
to HCD:

Annually with
APR
358
H-20 | Public Review Draft Policy Document, December 2022 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
require a minimum density of 20 units per acre.

Source: Existing Program 12, modified]
make the list available on the
city website
HE-K Mixed- Use Development
The City shall encourage mixed- use development in commercial areas and promote higher residential densities at locations proximate to shopping, employment, and public services.

The City shall revise the General Plan Land Use Element to allow mixed-use development in all commercial and professional office designations with a maximum density of 20 dwelling units per acre and a maximum Floor Area Ratio ( FAR) of 0.65
currently 0.23-0.50). Following the General Plan Update the City will update commercial and office zones for consistency .

The city will grant mixed- use developments that include affordable and/ or senior housing “ priority processing” over other applications. [ Source: Existing Program 13, modified]
Update the General Plan ( GP)
to allow mixed-used
development in all
commercial and P-O zones
Interview local stakeholders
regarding development
standards appropriate to
encourage mixed use
development in 2024
Update the Zoning Code for
consistency with the General
Plan and to be responsive to
stakeholder input in 2025;
encourage the production of
10 low-income, 10 moderate
and 20 above moderate
income units in mixed use
developments
Provide priority processing to
mixed use projects with
special needs and/ or senior
housing units to encourage
the production of: 10 verylow and 10 low-income units
H-3.1:

H-3.2:

Planning Division General
Fund ( staff
time)
GP update:
2023
Stakeholder
interviews:
2024
Zoning Code
update:
within three
years of the
adoption
deadline
359

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-21 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- L Infill Incentives Ordinance
The City shall encourage infill development as it efficiently uses the city’s scarce land resources by promoting development on vacant or underused parcels in neighborhoods where
infrastructure is already in place.

To better facilitate development of infill projects, the City wil l review and revise, as necessary, existing residential development standards to address barriers to in-fill development and ensure compliance with State law. As an incentive for multi-unit development on infill parcels, the City shall defer the payment of fees until just prior to the final occupancy inspection, thus minimizing a developer’ s capital outlay. [ Source: Existing Program 14, modified]
Within three years of the
adoption deadline, evaluate
and revise, as necessary,
residential development
standards to remove
constraints to multi-unit infill
development
Incentivize multi-unit infill
projects by deferring
payment of fees until final
occupancy
Encourage the development
of eight multi-family units in
high resource areas or on
infill parcels within the
planning period
H-2.1:

H-2.2:

H-3.2:

Planning Division General
Fund ( staff
time)
Within three
years of the
adoption
deadline
HE-M Lot Mergers
The City will continue to play an active role in facilitating lot mergers. The City shall collaborate with non-profit developers and owners of small sites to identify and merge parcels to facilitate the development of housing affordable to lowerincome households.

The City shall develop a ministerial approval process
incentivizing lot merger requests in support of housing development. The lot merger procedure will also be posted on the City website and discussed with developers during the preliminary review process. Incentives offered for lot mergers could include allowing higher densities and flexibility in development standards, and expedited processing. [ Source:

Existing Program 15, modified]
Identify parcels with
potential for lot consolidation
in 2023 and engage owners
once in the planning period
Identify incentives to be
incorporated into the lot
consolidation procedure in
2023-2024
Develop ministerial lot
consolidation procedure in
2024
H-3.2: Planning Division General
Fund ( staff
time)
Identify
parcels: 2023
Identify
incentives:
2023-2024
Adopt lot
consolidation
procedure:
2024
360
H-22 | Public Review Draft Policy Document, December 2022 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
Removal of Governmental Constraints
HE- N Affordable Housing Incentives Program
The City will implement an Affordable Housing Incentives Program to encourage private housing developers to provide affordable housing. In implementing the Program, the City shall:

A. Apply a streamlined permit processing for affordable housing developments in compliance with provisions
under SB 35 and SB 330.

B. Provide regulatory incentives in support of affordable housing, potentially including additional density or FAR allowances and deferred fees.

C. Review and revise required fees, as possible, to reduce constraints to development
D. Make information regarding incentives and funding
opportunities available in City Hall and on the City
website.

E. Use state and federal funding in support of affordable housing development.

F. Identify properties with potential for development or redevelopment as single-room occupancy housing and
provide owners with information on Single Room
Occupancies ( SRO).

G. Create a ministerial process for approving residential developments in commercially zoned areas, subject to
requirements provided in California Government Code
Sections 65400 and 65585, in compliance with AB 2011
2022)
Source: Existing Program 17, modified]
During the planning period,
support development of at
least 116 lower- and
moderate- income units:
28 extremely lowincome units
27 very low-income
units
39 low-income units
22 moderateincome units
Adopt a streamlined
ministerial approval process
for affordable housing in
compliance with SB 35
Provide information on
incentives for affordable
housing development on City
website
Engage with owners of
properties with potential for
SRO development twice in
the planning period
H-4.1:

H-4.2:

Planning Division General
Fund ( staff
time) CDBG,
HOME,
LIHTC, and
other,
regional,
State and
Federal
programs
A: 2024
B: 2024
C: Annually
D: 2023, and
updated
annually
E: Investigate
funding
opportunities
annually
F: Identify
parcels in
2023; engage
owners twice
in the
planning
period
361

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-23 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- O Municipal Code Updates
The City shall review and amend the Municipal Code to comply with State law to:

A. Allow low barrier navigation centers in mixed use and multi-family zoned areas in compliance with
Government Code Sections 65660 and 65668 ( AB 101).

B. Allow 100 percent affordable housing developments
with 25 percent or 12 units (whichever is greater) of
supportive housing by right in all zones where mixed
use and multifamily housing are permitted, in
compliance with AB 2162.

C. Allow housing for agricultural employees to be
permitted by right in single family zones for up to six persons and in agricultural zones for no more than 12
units or 36 beds in compliance with Health and Safety
Code 17021. 5 and 17021. 6.

D. Remove Conditional Use Permit ( CUP) requirements for all multi-family and mixed- use projects that provide a minimum of 20 percent affordability to lower income
households, in compliance with State law.

E. Adopt the most-recent edition to the California Building Code.

F. Allow lot splits and ADUs in compliance with SB 9.

G. Allow residential and mixed use projects that meet the provisions of California Government Code Sections
65913. 4 and 65852. 24, in all commercial zones in
compliance with SB 6 (2022)
Source: New Program]
Updated municipal code
within three years of the
adoption deadline
H-4.1:

H-4.2:

Planning Division General
Fund ( staff
time)
All actions
within three
years of the
adoption
deadline
362
H-24 | Public Review Draft Policy Document, December 2022 HE-P Affirmatively Furthering Fair Housing
The City shall address disparities in housing needs and access to opportunity for all persons regardless race, color, religion, sex, national origin, familial status, disability, gender, gender identity, gender expression, sexual orientation, marital status, ancestry, veteran or military status, source of income, and genetic information as protected categories by the California Fair Employment and Housing Act (Part 2.8 [commencing with
Section 12900] of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.

The City supports fair housing and will refer all alleged cases of discrimination to the State Office of Fair Employment and Housing and the California Rural Legal Assistance ( CRLA). The City also supports equal opportunity lending programs and nondiscriminatory practices in the selection of residents for participation in local housing assistance programs.

The City identified barriers to fair housing through the Affirmatively Furthering Fair Housing Assessment. Actions the City will take to address the identified barriers and foster an inclusive community, include:

Fair housing enforcement and outreach: Programs HEP (action A-D) and HE-V Housing stock age and lack of diversity: Programs HEA, HE-B, HE-H, HE-J, HE-K, HE-O, and HE-U Lack of affordable housing: Programs HE-C, HE-F, HE-G,
HE-M, HE-N, HE-O, and HE-U
Residents vulnerable to displacement: Programs HE-F,
HE-G, HE-I, HE-J, HE-K, HE-M, HE-N, HE-O, HE-P (action
G), and HE-R
Limited transit access: HE-P (actions E and F)
The City has included additional objectives with this program.

The City shall monitor progress toward these objectives annually A. Provide educational
information on fair housing
to the public through
distribution of a fair housing
brochure. The brochure will
be made available at the
Solvang Senior Center, the
Solvang Library, City Hall, and
on the City website.

B. Provide a minimum of one
informational event on fair
housing rights, fair housing
resources, and common
predatory practices,
especially related to older
adults in partnership with
Santa Barbara County and
other public and non-profit
agencies.

C. Provide information for
property owners and
manager on fair housing
laws and regulations on the
City’s website by 2025
D. Continue to support
efforts by the Housing
Authority of the County of
Santa Barbara and engage
the Housing Authority every
two years
E. Work with Santa Ynez
Valley Transit to make the
application for Dial-A-Ride
services more accessible, by
potentially removing
H-5.1:

H-5.2:

H-5.3:

Planning Division General
Fund ( staff
time)
A: 2024
B: by 2026
C: by 2025
D: Engage
Housing
Authority
annually
E: by 2027
F: by 2026
G: By 2024
363

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-25 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
in the Annual Progress Report and shall implement additional measures, as necessary. [ Source: Existing Program 18, modified] requirements for ADA
certification and physician
sign off
F. Work with local
organizations, particularly
those that serve seniors and
persons with disabilities, to
distribute information on
transit options
G: Through the General Plan
Update, adopt programs that
work to encourage business
diversification in new mixeduse developments, as well as to encourage new
businesses and visitor
attractions that would
enhance the existing
business mix.
364
H-26 | Public Review Draft Policy Document, December 2022 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- Q Housing for Disabled Persons
The City will support the development, preservation, and rehabilitation of units to accessible to seniors and persons with disabilities, including developmental disabilities.

A. The City will encourage new developments to provide a portion of units to meet the special housing needs of
seniors and persons with disabilities, including
developmental disabilities
B. The City shall pursue funding to assist with
construction and rehabilitation needs of housing
accessible to lower- and moderate- income persons
with a disability, including developmental disabilities, and/ or seniors
C. The City shall engage residents, developers, and service providers to determine constraints to accessible
housing
D. Evaluate and revise, as necessary, the reasonable
accommodation ordinance by 2026
E. Encourage new affordable housing for seniors and
persons with a disability near public transit.

Source: Existing Program 19, modified]
A. Identify funding
opportunities annually;
pursue one funding
opportunity during the
planning period
E. Identify parcels
appropriate for the
development of housing for
senior or residents; promote
this list on the City website
within six months of
identification.

During the Planning Period,
encourage the development
of:
20 units accessible
to seniors
20 units accessible
to persons with
disabilities
H-2.10:

H-5.1:

Planning Division General
Fund ( staff
time)
A: on a
project- byproject basis
B: identify
funding
annually;
pursue at
least one
opportunity
by 2031
C: 2024
D: by 2026
E: by 2024
365

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-27 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- R Universal Design
The City shall adopt a universal design ordinance that works to accommodate a wide range of abilities including children, aging populations, and persons with disabilities. The City will work with local homebuilders to encourage the integration of universal design features in new construction, and will also encourage discussion of design options with home purchasers prior to unit construction.

Source: Existing Program 20, modified]
Evaluate and consider the
model ordinance prepared by
the State of California
Adopt a universal design
ordinance
Provide information on
universal design techniques
and the universal design
ordinance to developers and
on the City website
H-2.3:

H-2.5:

H-2.10:

H-5.1:

Planning Division General
Fund ( staff
time)
Consider
model
ordinances:
by 2024
Adopt
ordinance: by
2025
Information
to developers
and website:
2023 and
updated
annually
366
H-28 | Public Review Draft Policy Document, December 2022 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE-S Emergency Shelters and Transitional and
Supportive Housing
The City will promote and facilitate emergency, transitional and supportive housing facilities, including low-barrier navigation centers, in the following manner:

A. The City will contact religious institutions in Solvang to inform them of the provisions of the City's zoning
ordinance allowing for emergency shelters, transitional, and supportive housing.

B. The City will contact public agencies and non-profit organizations that serve homeless and near-homeless
clients in the area to inform them of the City's
provisions.

C. The City will provide application assistance as
necessary to support funding requests for emergency
shelter or transitional and supportive housing requests.

D. The City will meet annually with homeless service
providers to evaluate current and future needs for an
emergency shelter or transitional and supportive
housing facility in Solvang. Should the need for such
facilities arise, the City will provide assistance in
accessing state or federal funding for such facilities by partnering with service providers, non-profit agencies, and the Santa Barbara County Continuum of Care in the
pursuit of grants.

Source: Existing Program 21, modified]
Provide informational
materials related to
emergency shelters, and
transitional and supportive
housing, zoning regulations,
and funding opportunities to
religions institutions, public
agencies, and service
providers
Provide application
support/ technical assistance
in support of three funding
pursuits
Identify funding opportunities
annually
H-2.1:

H-2.4:

H-2.10:

Planning Division General
Fund ( staff
time) HUD:

Emergency
Solutions
Grant
Program
ESG) or
Continuum
of Care
Program
CoC)
United
States
Department
of
Agriculture
USDA):

Community
Facilities
A: 2025
B: 2025
C: one by
2026, two by
2028, 3 by
2031
D: Annually
367

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-29 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- T Energy Conservation
The City is dedicated to assisting developers, renters, and property owners to increase their energy conservation
opportunities to encourage the incorporation of energy saving features, energy saving materials, and energy efficient systems and design for residential development. The City recognizes that planning to maximize energy efficiency and the incorporation of energy conservation and green building features can contribute to reduced housing costs for homeowners and renters, in addition to promoting sustainable community design and
reduced dependence on vehicles. To promote energy
conservation, the City shall:

A. Adopt the most recent California Green Building
Standards Code ( CALGreen).

B. Provide public information on energy conservation
programs and alternative energy technologies to
residential developers, contractors, and property
owners through the City website.

C. Encourage the use of alternative energy technologies in new and rehabilitated housing.

Source: Existing Program 22, modified]
Adopt the most recent Green
Building Standards Code, as
released
Provide information on
energy conservation
programs on the City website
H-4.4: Planning Division General
Fund ( staff
time)
A: within one
year of
updates to
CALGreen
B: by 2025
C: on a
project- byproject basis
368
H-30 | Public Review Draft Policy Document, December 2022 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE- U Missing Middle Housing
The City will review and amend residential development
standards to encourage and promote a mix of dwelling types and sizes, specifically missing middle- density housing types e.g., duplexes, triplexes, courtyard buildings, townhomes) to encourage the development of housing types affordable to the local workforce.

Specifically, the City shall evaluate zoning standards related to minimum lot size and width, maximum lot coverage, required setbacks, open space and landscaping requirements, and
parking ratios, particularly in high resource, low-density zones.

Source: New Program]
Evaluate development
standards within the zoning
code
To enhance housing mobility
and housing choice,
encourage the development
of a variety of missing
middle housing types in infill
projects; support the
development of two missing
middle housing
developments between two
and 8 units
To enhance housing mobility,
encourage the development
of 8 moderate- income units
in high resource areas
H-2.1:

H-2.2:

H-3.2:

H-4.2:

Planning Division General
Fund ( staff
time)
2023-2031
Evaluate
development
standards:

By 2024
369

9. HOUSING
Public Review Draft Policy Document, December 2022 | H-31 Implementation Program Objectives
Implements
What
Policies
Responsibility
Potential
Funding
Source
Timeframe
HE-V Housing Information Transparency
The City will, in accordance with AB 1483 ( 2019), obtain, maintain, update, and make publicly available information related to zoning ordinances, development standards, fees, exactions, affordability requirements, and fair housing laws from the Department of Housing and Community Development, State Fair Employment, and Housing Commission’ s enforcement
program, as well as programs and funding sources for
homeowners at risk of foreclosure, the State Historic Building Code, and information on energy conservation opportunities.

The City will, as appropriate, share this information on the City website and/ or in hard copy form at City offices. Any changes to such information shall be made public within 30 days of changes. The City will provide these items in Spanish, as funding and staff time allows. [Source: New Program]
Create and share a digital
information database in
compliance with AB 1483 by
2024
Updated information is made
publicly available within 30
days of changes
Provide information in
Spanish, as funding allows
H-4.2: Planning Division General
Fund ( staff
time)
By 2024, and
updated
regularly
HE-W Surplus and Excess Public Land
The City will, in accordance with AB 1486 ( 2019) and AB 1255 2019), annually identify and inventory a list of sites owned by the City that have been sold, leased, or otherwise disposed of in the prior year. This inventory shall be publicly available and be included in the Housing Element annual report presented to the City Council and submitted to HCD. [ Source: New Program] Regularly maintain an
inventory of publicly owned
surplus or excess land on the
City website
Annually release information
regarding publicly owned
sites that have been sold,
leased, or disposed of
H-4.2: Planning Division General
Fund ( staff
time)
Annually
370
H-32 | Public Review Draft, December 2022
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373
Table of Contents
Introduction ........................................................................................................... 1 Housing Element Purpose .................................................................................................................................. 1 Authority .............................................................................................................................................................. 1 Status ................................................................................................................................................................... 1 Consistency with the General Plan .................................................................................................................... 2 Associated General Plan Element Updates ....................................................................................................... 2 Changes to State Law ......................................................................................................................................... 2 Public Participation ............................................................................................................................................. 9 Review of the Existing Housing Element ............................................................... 23 Housing Production During the 2015-2023 Planning Period ......................................................................... 23 Progress in Implementation ............................................................................................................................. 24 Effectiveness of the 2015 Housing Element ................................................................................................... 26 Demographic and Economic Trends ..................................................................... 27 Population Trends ............................................................................................................................................. 27 Household Trends ............................................................................................................................................. 32 Employment Trends .......................................................................................................................................... 36 Housing Conditions .............................................................................................. 39 Affordable Housing At-Risk of Conversion ...................................................................................................... 42 Overpayment ..................................................................................................................................................... 44 Special Housing Needs ........................................................................................ 46 Non-Governmental and Governmental Constraints to Housing Production ........... 52 Non-Governmental Constraints ........................................................................................................................ 52 Governmental Constraints ................................................................................................................................ 57 Physical Constraints ......................................................................................................................................... 75 Zoning for a Variety of Housing Types ................................................................. 76 Housing Types Permitted by Zone ................................................................................................................... 76 Multifamily Housing .......................................................................................................................................... 78 Density Bonuses ................................................................................................................................................ 78 Employee and Agricultural Worker Housing .................................................................................................... 78 Emergency Shelters, Transitional Housing, and Supportive Housing ........................................................... 79 374
Low Barrier Navigation Centers ....................................................................................................................... 79 Single-Room Occupancy Units (SROs) ............................................................................................................ 80 Accessory Dwelling Units (ADUs) .................................................................................................................... 80 Secondary Use/ Mixed Use ............................................................................................................................... 81 Manufactured Housing and Mobile Homes .................................................................................................... 81 Special Care Facilities ....................................................................................................................................... 82 Opportunities for Energy Conservation ................................................................. 84 Housing Resources .............................................................................................. 86 Future Housing Need ........................................................................................................................................ 86 Credits Toward the RHNA ................................................................................................................................. 86 Residential Sites Inventory ............................................................................................................................... 90 Availability of Infrastructure ........................................................................................................................... 107 Financial Resources ........................................................................................................................................ 108 Community Resources .................................................................................................................................... 109 Appendices ........................................................................................................ 113 Appendix A: Affirmatively Further Fair Housing (AFFH) ............................................................................ H-A-1 Appendix B: Evaluation of the Previous Housing Element ........................................................................ H-B-1 375
Tables
Table H-1 Fifth Cycle (2015-2023) Housing Element Progress ...................................................... 23 Table H-2 Population Growth Trends 2016 -2021, with 2010 Benchmark ..................................... 27 Table H-3 Population Projections, 2020-2050 .................................................................................. 29 Table H-4 Age Characteristics and Trends 2010-2020 .................................................................... 30 Table H-5 Racial Demographics, 2000-2020 .................................................................................... 31 Table H-6 Income in The Past 12 Months ( In 2020 Inflation- Adjusted Dollars) ............................ 32 Table H-7 Existing Households by Tenure ........................................................................................ 33 Table H-8 Change in Number of Households by Tenure, 2010-2020 ............................................. 33 Table H-9 Household Size by Tenure ................................................................................................ 34 Table H-10 Overcrowding in Solvang, 2019 ........................................................................................ 34 Table H-11 City and County Housing Growth Trends 2011-2020 ..................................................... 35 Table H-12 Projected Housing Needs in Comparison to Nearby Jurisdictions ............................... 35 Table H-13 Employment by Industry, 2020 ......................................................................................... 37 Table H-14 Job Forecast, 2020-2050 .................................................................................................. 38 Table H-15 Housing Units by Type – Change over Time, 2010-2020 ............................................... 40 Table H-16 Occupancy Status .............................................................................................................. 40 Table H-17 Housing Stock by Type of Vacancy .................................................................................. 41 Table H-18 Solvang Age of Housing Stock ......................................................................................... 42 Table H-19 Assisted Units at Risk of Conversion ............................................................................... 42 Table H-20 Affordable Unit Inventory .................................................................................................. 43 Table H-21 Cost Burdened Households in Solvang ........................................................................... 44 Table H-22 Owner Occupied Cost Burdened Households ................................................................. 45 Table H-23 Renter Occupied Cost Burdened Households ................................................................. 45 Table H-24 Population of Special Needs Groups, 2020 ..................................................................... 46 Table H-25 Housing Cost Burden Greater than 30% .......................................................................... 47 Table H-26 Housing Cost Burden Greater than 50% .......................................................................... 47 Table H-27 Projected Extremely Low-Income Housing Needs (RHNA) ............................................ 48 Table H-28 Senior Households by Tenure, 2020 ................................................................................ 48 Table H-29 Persons with Disabilities by Type of Disability, 2020 ..................................................... 49 Table H-30 People with Developmental Disabilities by Age, Solvang ............................................... 50 Table H-31 People with Developmental Disabilities by Residence, Solvang .................................... 50 Table H-32 Households by Number of Persons ................................................................................. 51 Table H-33 Number of Bedrooms ........................................................................................................ 51 376
Table H-34 For Sale Vacant Residential Parcels, November 2022 ................................................... 53 Table H-35 Rental Affordability by Income Level, Solvang ................................................................ 55 Table H-36 Monthly Housing Costs, 2020 .......................................................................................... 57 Table H-37 Land Use Categories Permitting Residential Use ........................................................... 58 Table H-38 Residential Development Standards ................................................................................ 59 Table H-39 Residential Setbacks ......................................................................................................... 61 Table H-40 Parking Requirements ....................................................................................................... 63 Table H-41 Estimated Typical Timeline for Projects Requiring Discretionary Review .................... 68 Table H-42 Allowable Modifications ................................................................................................... 69 Table H-43 Planning Fees, August 2022 ............................................................................................. 71 Table H-44 Estimated Building Fees for 2000-2500 ft2 Single-family Home, August 2022 ............ 72 Table H-45 Estimated Building Fees for a New 5,000 ft2 Two-Story 10-unit Multi-Family Project . 73 Table H-46 Housing Types Permitted by Zone ................................................................................... 77 Table H-47 List of Special Care Facilities ........................................................................................... 83 Table H-48 Projected Housing Needs ( Regional Housing Need Allocation) .................................... 86 Table H-49 Summary of Pending and Approved Projects ................................................................. 87 Table H-50 Accessory Dwelling Units Constructed, 2019-2021 ........................................................ 88 Table H-51 ADU Affordability Assumptions for the Sixth Cycle ........................................................ 89 Table H-52 Progress Toward RHNA .................................................................................................... 90 Table H-53 List of Vacant Sites Not Requiring Rezones .................................................................... 92 Table H-54 List of Vacant Sites Requiring Rezoning .......................................................................... 98 Table H-55 Site A Summary ................................................................................................................. 99 Table H-56 Site B Summary .............................................................................................................. 101 Table H-57 Site C Summary .............................................................................................................. 103 Table H-58 Site D Summary .............................................................................................................. 105 Table H-59 Sites Inventory ................................................................................................................ 107 377
Figures
Figure H-1 Population Growth Since 2010 ......................................................................................... 28 Figure H-2 Projected Population Growth, 2020-2050 ........................................................................ 29 Figure H-3 Housing Units by Type, 2021 ............................................................................................ 39 Figure H-4 Single Family Home Values, 2000-2022 .......................................................................... 56 Figure H-5 Vacant Sites Suitable for Development ........................................................................... 91 Figure H-6 Vacant Sites Requiring Rezoning ..................................................................................... 97 Figure H-7 HASBARCO Managed Properties Near Solvang ........................................................... 110 378
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379
Introduction
Since 1969, California Housing Element Law has required that local governments develop plans to accommodate and facilitate housing for current and future residents, at all income levels. California planning law provides more detailed requirements for the housing element than for any other element of the general plan. The State Legislature has found that "the availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. The Housing Element consists of two parts, the Housing Needs Assessment ( Needs Assessment) and the Housing Element Policy Document.

This document, the Needs Assessment, identifies and analyzes the existing and projected housing needs, provides a list of sites for housing development that are adequate to accommodate the City’s regional housing needs allocation, documents constraints to housing production, and analyzes fair housing issues and contributing factors. In short, the Needs Assessment provides the context for the City' s housing action plan.

In response to this thorough analysis and public outreach, the Housing Element Policy Document outlines the City’s goals, policies, programs, and quantified objectives to meet the identified housing needs through development, rehabilitation, and preservation. The Policy Document is the action plan that responds directly to the findings of the Housing Needs Assessment and input from the community. The City will implement the actions specified in the Policy Document throughout the eight-year planning period.

Housing Element Purpose
The purpose of the Housing Element is to establish a comprehensive plan to address housing needs in Solvang over the eight-year planning period between February 15, 2023, through February 15, 2031. The Housing Element sets the policies surrounding the development, rehabilitation, and preservation of housing units that meet the needs of Solvang residents.

Authority
Housing Elements are required by section 65302( c) of the California Government Code. Housing Elements are one of seven mandatory General Plan Elements. Specific requirements for Housing Elements are set forth beginning at section 65580 of the Government Code, with additional guidance provided by the State Department of Housing and Community Development ( HCD). The combination of the Housing Needs Assessment and the Housing Element Policy Document will address all applicable requirements of state law.

Status
The Solvang City Council adopted the prior Housing Element on April 27, 2015, for the planning period ranging from February 15, 2015, through February 15, 2023. Upon review of the adopted Housing Element, HCD sent the City of Solvang aletter of compliance on June 16, 2015. The 2023-2031 Housing Element Update will plan for Solvang’ s housing needs through the 8-year planning period of February 15, 2023, through February 15, 2031. While the City’s policies and programs guide housing development during the planning period, the City receives credit for housing units that are built during the Regional Housing Need Assessment ( RHNA) projection period, which is June 20, 2022, through February 15, 2031, a period of 8.5 years.
380
Consistency with the General Plan
California Government Code Section 65300. 5 requires that a general plan be internally consistent, meaning that no conflicts exist among the elements of the plan. Government Code section 65583( c) requires that a Housing Element describe how consistency has been achieved among the general plan elements. The most important aspect of consistency among general plan elements is that policies and implementation measures do not conflict but support one another to achieve the overall goals and vision of a general plan.

In preparing the 2023-2031 Housing Element, the City is also concurrently drafting acomprehensive General Plan update.

Throughout the development ofthe Housing Element and General Plan Updates, City staff and decision- makers reviewed each Element to ensure consistency amongst Elements as well as with the General Plan Vision and Guiding Principles.

Additionally, if the General Plan is amended during the planning period, the City will review the Housing Element for internal consistency and make any necessary revisions.

Associated General Plan Element Updates
California Government Code 65302 et seq. requires that the Safety Element be revised upon the adoption of the Housing Element to identify updated information regarding flood and fire hazards and evacuation routes. The City is updating the General Plan, including the Safety Element concurrent with the Housing Element Update.

California Government Code 65302 also requires that cities and counties with disadvantaged communities update the Environmental Justice Element to identify objectives and policies to reduce the unique or compounded health risks in disadvantaged communities, promote civic engagement, and prioritize improvements and programs that address the needs of disadvantaged communities. The City does not have any identified disadvantaged communities as defined by California Government Code 65302(h) et seq. Therefore, the City is not required to draft an Environmental Justice Element and/ or Disadvantaged Communities Element.

Changes to State Law
The following items represent substantive changes to State housing law since the City’s last Housing Element was adopted and certified. While this is not an exhaustive list, a majority of these items are state mandates that must be addressed in the Housing Element.

Affordable Housing Streamlined Approval Process: Senate Bill 35 (2017) SB 35 requires a streamlined, ministerial review process, or objective design standards, for qualifying multifamily, urban infill projects in jurisdictions that haven’ t approved sufficient housing projects to meet their State mandated RHNA.

Among other requirements, to qualify for streamlining under SB 35, a project must incorporate one of two threshold levels of affordable housing: ( 1) 10 percent of the project units in jurisdictions that have not approved housing projects sufficient to meet their RHNA for above moderate income housing or have failed to submit an annual progress report as required under state law; or (2) 50 percent of the project units in jurisdictions that have not approved housing projects sufficient to meet their RHNA for below moderate income housing. Additionally, the Housing Element must describe the City's processing procedures related to SB 35.

Solvang is currently not subject to SB 35 Streamlining Provisions given its status of one of a small handful of jurisdictions statewide that have met and exceeded their RHNA obligations for the 2015-2022 planning period. However, jurisdictions are still required to have a procedure in place if development doesn’ t keep pace with the needs outlined in the 2015-2023 381
RHNA. Currently, the City has not adopted a procedure for SB 35 streamlining. Program HE-N commits the City to codifying a streamlined review process in accordance with SB 35.

Additional Housing Element Sites Analysis Requirements: Assembly Bill 879 (2017) and Assembly Bill 1397 (2017)
These bills require additional analysis and justification of the sites included in the sites inventory of the City Housing Element. The Housing Element may only count non vacant sites included in one previous housing element inventory and vacant sites included in two previous housing elements if the sites are subject to a program that allows affordable housing by right. Additionally, the bills require additional analysis of non vacant sites and additional analysis of infrastructure capacity, and by place size restrictions on all sites.

The site inventory analysis in this housing element analyzes local infrastructure capacity in compliance with AB 879 and AB 1397. Several vacant sites are identified as recycled sites that were used in two previous housing elements. To comply with AB 879 and AB 1397, Program HE-J commits the City to ministerial approval of the development ofrecycled Housing Element sites where 20 percent or more of the units planned on site are lower income units.

Affirmatively Furthering Fair Housing: Assembly Bill 686 (2017) AB 686 requires the City to administer its housing programs and activities in a manner to affirmatively further fair housing and not take any action that is inconsistent with this obligation. The City must take actions toovercome patterns of segregation, address disparities in housing needs and access to opportunity, and foster inclusive communities. The Housing Element must include an assessment of fair housing practices, an examination of the relationship of available sites to areas of high opportunity, and actions to affirmatively further fair housing.

The City has included an AFFH analysis in Appendix A and meaningful actions that proactively work to further fair housing in the Policy Document.

No-Net-Loss Zoning: Senate Bill 166 (2017)
SB 166 amended the No Net Loss rule to require that the land inventory and site identification programs in the Housing Element include sufficient sites to accommodate the unmet RHNA. When a site identified in the Housing Element as available to accommodate the lower income portion of the RHNA is actually developed for a higher income group, the City must either ( 1) identify, and rezone, if necessary, an adequate substitute site or ( 2) demonstrate that the land inventory already contains an adequate substitute site.

The City has identified residential capacity to meet the 2023-2031 RHNA allocation. Program HE-J is included to commit the City to monitoring development such that if any lower income sites inventory sites are developed for higher income groups, substitute sites will be identified.

Safety Element to Address Adaptation and Resiliency: Senate Bill 1035 (2018) SB 1035 requires the General Plan Safety Element to be reviewed and revised to include any new information on fire hazards, flood hazards, and climate adaptation and resiliency strategies with each revision of the housing element.

The City is concurrently updating its Safety Element, which includes SB 1035 provisions, alongside this Housing Element Update, in compliance with SB 1035.
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By Right Transitional and Permanent Supportive Housing: Assembly Bill 2162 (2018), Senate Bill 48 (2018), and Assembly Bill 101 (2019)
AB 2162 requires the cities and counties to provide a “by right” process and expedited review for supportive housing.

Additionally, the bill prohibits jurisdictions from applying a conditional use permit or other discretionary review to the approval of 100 percent affordable developments that include a percentage of supportive housing units, either 25 percent or 12 units, whichever is greater. This applies to sites in zones where multifamily and mixed uses are permitted, including in nonresidential zones permitting multifamily use. The City, as codified in Municipal Code Section 11-6A-2, 11-6B-2, and 11-6C-4, allows both supportive and transitional housing by-right in all residential zoning districts. The City currently does not comply with these requirements of AB 2162. Program HE-O commits the City to ensuring compliance with AB 2162.

Additionally, AB 101 and SB 48 require that a Low Barrier Navigation Center development be a use allowed by right in mixed-use zones and nonresidential zones permitting multifamily uses ifit meets specified requirements. The City does not currently comply with this requirement. Program HE- O commits the City to allowing Low Barrier Navigation Centers, by right, in mixed-use zones and nonresidential zones permitting multifamily uses.

Accessory Dwelling Units: Assembly Bill 2299 (2016), Senate Bill 1069 (2016), Assembly Bill 494 (2017), Senate Bill 229 (2017), Assembly Bill 68 (2019), Assembly Bill 881 (2019), Assembly Bill 587 (2019), Senate Bill 13 (2019), Assembly Bill 670 ( 2019), Assembly Bill 671 (2019), Assembly Bill 3182 (2020), Assembly Bill 2221 ( 2022), and Senate Bill 897 (2022)
In recent years, multiple bills have added requirements for local governments related to Accessory Dwelling Unit (ADU) regulation. The 2016 and 2017 updates to State law included changes pertaining to the allowed size of ADUs, permitting ADUs by right in at least some areas of a jurisdiction, and parking requirements related to ADUs. More recent bills reduce the time to review and approve ADU applications to 60 days and remove lot size and replacement parking space requirements. AB 68 allows an ADU and a junior ADU to be built on a single-family lot, if certain conditions are met. The State has also removed owner- occupancy requirements for ADUs, created a tiered fee structure that charges ADUs based on their size and location, and prohibits fees on units of less than 750 square feet. In addition, AB 670 prohibits the restriction of the construction of JADUs and ADUs on single family lots and AB 671 requires the Housing Element to include plans to incentivize and encourage affordable ADU rentals. AB 2221 clarifies previous legislative language by specifying that ADUs need to be approved or denied within 60 days of the date of application submittal and AB 3182 stipulates that if a local agency hasn’t acted on an ADU application in 60 days, it is automatically approved. SB 897 increases the height limit to 18 feet for a detached ADU within a half mile of a major transit stop; and 25 feet ( or base zone height, whichever is less) for attached ADUs, effectively allowing two-story ADUs.

The City currently does not comply as there is no adopted accessory dwelling unit ordinance in effect. The City’s previous ADU ordinance, known as the Second Residential Units ordinance, was not compliant with state law, repealed in 2017, and will be removed from the code in 2023. For any current matters regarding ADU regulation, the City currently defers to State law regarding Accessory Dwelling Unit regulation and is in the process of codifying reliance on state ADU standards in section 11-12-4 of the Solvang Municipal Code. Program HE-H commits the City to adopting codifying the reliance on state ADU standards and promoting the development of ADUs during the planning period. 383
Density Bonus: Assembly Bill 1763 (2019), AB 2345 (2020), AB 682 (2022), AB 1551 ( 2022), and AB 2334 (2022)
AB 1763 amended California’ s density bonus law to authorize significant development incentives to encourage 100 percent affordable housing projects, allowing developments with 100 percent affordable housing units to receive an 80 percent density bonus from the otherwise maximum allowable density on the site. Additionally, the law stipulates that if a project is within half a mile of a major transit stop (as defined by Public Resources Code Section 21064), a jurisdiction may not apply any density limit to the project. Solvang does not have any transit stops that match the definition of a major” transit stop according to State law.

AB 2345 further amended California’ s density bonus law to allow residential projects with some on-site affordable housing to receive a density bonus of up to 50 percent. Specifically, a residential development is eligible for a 50 percent density bonus if 11 percent of the units are very low-income, 20 percent are low-income units, or 40 percent are moderate-income units. The affordable units must remain affordable for a minimum of 55 years. In addition to the density bonus, qualifying projects will receive four regulatory incentives or concessions, depending on how much of the development includes affordable units. Specifically:

One incentive or concession for projects that include at least 10 percent of the total units for lower-income households, at least 5 percent for very low-income households, or at least 10 percent for persons and families of moderate- income in a common interest development.

Two incentives or concessions for projects that include at least 17 percent of the total units for lower-income households, at least 10 percent for very low-income households, or at least 20 percent for persons and families of moderate- income in a common interest development.

Three incentives or concessions for projects that include at least 24 percent of the total units for lower-income households, at least 15 percent for very low-income households, or at least 30 percent for persons and families of moderate-income in a common interest development.

Four incentives or concessions for projects where one hundred percent of all units in the development, including total units and density bonus units, but exclusive of a manager’ s unit or units, are for lower income households, as defined by Section 50079. 5 of the Health and Safety Code, except that up to 20 percent of the units in the development, including total units and density bonus units, may be for moderate- income households, as defined in Section 50053 of the Health and Safety Code. For these projects, ifit is located within one-half mile of a major transit stop, the applicant also receives a height increase of up to three additional stories ( 33 feet).

AB 682 expands the Density Bonus Law to include “ shared housing buildings” as a housing development eligible for a density bonus. The bill defines a “shared housing building” as a residential mixed- use structure with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residence (> 30 days) by its tenants. Additionally, the bill does not allow a local jurisdiction to require any minimum unit size requirements or minimum bedroom requirements for a shared housing building.

AB 1551 reinstates a previous law that sunsetted on January 1, 2022, that granted commercial density bonuses to commercial developers. To be eligible for one of the six commercial density bonuses the developer must partner with an affordable housing developer to build affordable housing where at least 30 percent are affordable to low-income households or 15 percent are affordable to very low-income households. The affordable units can either be built on the commercial site, or the developer can donate land or a cash payment to the affordable housing developer to construct affordable housing units elsewhere in the jurisdiction. 384
AB 2334 encourages higher densities in urban, infill development areas. Existing State law grants enhanced density bonuses for affordable housing developments located near transit. AB 2334 expands on this law by allowing unlimited density and a 33-foot height increase for 100 percent affordable housing developments located in “very low vehicle travel areas”. The bill defines “ very low vehicle travel areas” as an urbanized area where existing residential development generates less than 85 percent of either regional or city vehicle miles traveled ( VMT) per capita. This new definition differs from existing law in that it does not require projects to be within a certain distance of a transit stop to be eligible for the maximum density bonus. Solvang does not fit into the regulatory definitions of a “very low vehicle travel area” as defined by AB 2334.

The City of Solvang complies with State density bonus law as the City has established density bonus provisions for affordable housing that directly defer to California Government Code 65915 in Municipal Code Section 11-12-23.

Housing Crisis Act of 2019: Senate Bill 330 (2019)
SB 330 enacts changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units demolished. Additionally, any demolished units that were occupied by lower-income households must be replaced with new units affordable to households with those same income levels. The Housing Element must describe the City's processing procedures related to SB 330.

The City currently does not comply as it does not have any statutory requirements that ensure compliance with SB 330 provisions. Program HE-N commits the City to updating the Municipal Code for compliance with SB 330.

Surplus Land Act Amendments: Assembly Bill 1486 and AB 1255 (2019) AB 1486 refines the Surplus Land Act to provide clarity and further enforcement to increase the supply of affordable housing. The bill requires the City to include specific information relating to surplus lands in the Housing Element and Housing Element Annual Progress Reports and to provide a list of sites owned by the City that have been sold, leased, or otherwise disposed of in the prior year. AB 1255 requires the City to create a central inventory of surplus and excess public land each year. The City is required to transmit the inventory to the Department of Housing and Community Development and to provide it to the public upon request.

There are currently no City-owned surplus lands suitable for residential development in Solvang. The City will evaluate parcels each year and will report findings to HCD in the Housing Element Annual Progress Report.

Housing Information Transparency: Assembly Bill 1483 (2019) AB 1483 requires the City to publicly share information about zoning ordinances, development standards, fees, exactions, surplus public lands, fair housing resources, and affordability requirements. The City is also required toupdate such information within 30 days of changes.

The City provides this information on its website and is committed to updating the material as necessary throughout the planning period ( Program HE-V). Additionally, Programs HE-F, HE-G, and HE-J include actions to ensure transparency on housing- related matters.
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Emergency and Transitional Housing Act of 2019: Assembly Bill 139 (2019) AB 139 established new criteria for evaluating the needs of the homeless population. The analysis must assess the capacity to accommodate the most recent homeless point-in-time count by comparing that to the number of shelter beds available on a year-round and seasonal basis, the number of beds that go unused on an average monthly basis, and the percentage of those in emergency shelters that move to permanent housing. The bill also established new parking standards for emergency shelters. Lastly, the bill requires the Housing Element to include a review of the effectiveness of the housing element goals, policies, and related actions to meeting the jurisdiction’ s special housing needs ( see the Review of the Existing Housing Element section and Appendix B).

The Housing Element provides information on the homeless point-in-time count in the Special Housing Needs section.

The City currently does not have an emergency shelter for people experiencing homelessness. Program HE-S commits the City to meeting with homeless service providers, periodically, to evaluate current and future needs for people experiencing homelessness.

Standardization of Sites Inventory Analysis and Reporting: Senate Bill 6 (2019) SB 6 requires the City to electronically submit the sites inventory to HCD using the standards, form, and definitions adopted by HCD.

The City is compliant with SB 6 as it sends HCD standardized annual progress reports to HCD and reports on housing element program process annually. However, this process has not been formally written in a housing element program thus far. Program HE-J commits the City to submitting the final sites inventory to HCD, in compliance with standardized procedures, with the adopted Housing Element. Program HE-J also commits the City to updating the inventory annually based on development activity and providing annual reports on progress to the City Council.

Evacuation Routes: Senate Bill 99 and AB 747 (2019)
AB 747 and SB 99 require the General Plan Safety Element to be updated to identify evacuation routes and their capacity, safety, and viability under a range of emergency scenarios and to include information identifying residential developments in hazard areas that do not have at least two emergency evacuation routes, such as the Old Mission Drive area west of Alamo Pintado Road. Concurrently with the Housing Element Update, the City is revising the Safety Element, which includes identifications of evacuation routes in compliance with State law.

Housing Development in Dense, Urban Areas: Senate Bill 10 (2021) SB 10 authorizes local governments to adopt an ordinance to zone any parcel to a density of ten units per acre if the parcel is located in a transit-rich area or an urban infill site, even if there are existing local restrictions on adopting such a zoning ordinance. If there are existing local zoning restrictions on the parcels that are planned to be upzoned, a twothirds vote by the legislative body, such as the City Council, would be able to supersede existing regulations to apply an allowance of a density of ten units per acre. In effect, SB 10 allows local governments the option of upzoning parcels despite existing zoning or applicable ordinances.

Although Solvang has no “transit-rich areas,” as defined in Public Resources Code Section 21064. 3, there are some sites which may be considered “urban infill sites” that would be subject to the provisions of SB 10. SB 10 does not require a Municipal Code amendment for compliance. SB 10’s provisions remain as a possible tool for Solvang’ s City Council to implement, in the case that there is a desire to increase housing through this particular method. 386
Abolition of Parking Minimums Near Major Transit: Assembly Bill 2097 (2022) SB 2097 prohibits jurisdictions from imposing any minimum parking requirements on any development, residential or otherwise, within a half mile of a major transit stop, as defined by Public Resources Code Sections 21155 and 21064. 3.

The bill allows for an exemption ifthe development is (1) a housing development with 20 percent of the units dedicated to lower-income householders, moderate income households, students, the elderly, or persons with disabilities, ( 2) has less than twenty housing units, or (3) already has parking restrictions enforced by other laws. Solvang does not have any transit stops that match the definition of a “major” transit stop according to State law, therefore AB 2097 does not apply to Solvang.

Affordable Housing and Road Jobs Act: Assembly Bill 2011 (2022) AB 2011 opens new opportunities for affordable housing development by allowing qualified residential development in commercially zoned areas. The bill creates a streamlined, ministerial approval process for two types of projects: 1) 100 percent affordable housing projects in commercial zones, and 2) mixed-income housing projects along commercial corridors where 15 percent of units are affordable to lower income households. In both cases, the proposed project site cannot be adjacent to industrial uses or environmentally sensitive areas.

Additionally, AB 2011 imposes labor standards for the projects listed above to promote high-paid, middle- class construction jobs. Developers are required to use contractors that pay workers a general prevailing wage, participate in a State-approved apprenticeship program, and offer health benefits for projects of 50 units or more.

AB 2011 takes effect July 1, 2023 and sunsets on January 1, 2033.

Program HE-O commits the City to amending the Municipal Code create a ministerial process for constructing residential developments in commercially zoned areas, subject to requirements provided in California Government Code Sections 65400 and 65585, in compliance with AB 2011.

Middle Class Housing Act: Senate Bill 6 (2022)
Similar to AB 2011, SB 6 provides new opportunities for affordable housing development by allowing residential development in commercial zones; however, SB 6 does not create a ministerial approval process for these projects and does not have as strict of development standards as in AB 2011. SB 6 allows residential development in commercial zones, without the need of rezoning, for projects 20 acres or less. Projects must either be 100 percent residential or mixed use where a majority of the square footage ( at least 50 percent) is dedicated residential space. SB 6 does not impose any minimum affordability requirements but does require developers to use a skilled and trained workforce union labor) and pay a prevailing wage.

SB 6 takes effect July 1, 2023 and sunsets on January 1, 2033.

Program HE-O commits the City to amending the Municipal Code to allow the residential developments in commercially zoned areas without rezoning, provided that the projects meet the requirements provided in California Government Code Sections 65913. 4 and 65852. 24, in compliance with SB 6.

AB 2011 vs. SB 6
Although AB 2011 and SB 6 are similar in their scope, the State approved both, leaving the decision up to developers to decide which is more beneficial to their project. While both bills allow for residential development in commercially zoned areas, AB 2011 has a greater emphasis on affordability requirements and ministerial approval, whereas SB 6 has a 387
greater emphasis on labor standards and less restrictive development standards. Both laws are set to sunset in 2033 at which time there will be a review of each law with the possibility of one or both laws being extended, or a merging of the two.

Ministerial Approval of Urban Lot Splits: Senate Bill 9 (2021) SB 9 aims to increase density in single family zones by requiring ministerial approval of two primary dwelling units in a single-family zone and/ or the subdivision of a parcel in a single-family zone into two parcels. The overall goal of SB 9 is to allow for theoretically four units of housing, two primary and two accessory, on what was once a singular plot of land.

Provisions of the law include the modification or elimination of development standards, such as setbacks, on a case-bycase basis, to allow for the construction of two primary dwelling units on lots that wouldn’ t otherwise have the necessary space to accommodate both two dwelling units and municipal development standards.

The city is currently not in compliance with the requirements of SB 9. Program HE-N commits the City to amending the Municipal Code to allow for a process for ministerial approval of urban lot splits in compliance with SB 9.

Public Participation
Section 65583( c)(5) of the Government Code states that, "The local government shall make diligent effort to achieve public participation of all the economic segments of the community in the development of the housing element, and the program shall describe this effort." Public participation played a critical role in the formulation and refinement of the County’ s housing goals and policies.

Housing issues affect the entire community – residents, employers, and the public and private sectors. The public participation requirement of the Housing Element Law presents an opportunity to engage constituents in a dialogue – defining problems and creating solutions. The inclusion of community stakeholders in the housing element public participation process helps ensure appropriate housing strategies are more efficiently and effectively evaluated, developed, and implemented. An inadequate public participation process may lead to community conflict or in worse case scenarios, anti-development initiatives, and Not In My Back Yard ( NIMBY)- ism). Successful public participation is important because a diverse cross section of the population can be engaged in defining the housing problem and in crafting community sensitive solutions. Another benefit of broad participation and true engagement of the public is that when it is time to adopt housing strategies and approve housing developments, a greater portion of the community has been involved and participated in the plan and more frequently will support its implementation. Meaningful participation creates stakeholders in the ultimate outcome of the process.

In response to the need for public participation, City Staff worked with consultants to develop a robust community engagement program tailored to ensure the community and other stakeholders are engaged in the process and are given ample opportunities to provide input. The key objective of the community engagement program is to maximize opportunities for everyone interested in the Housing Element to participate. The engagement program includes branding, a project website, newsletters and eBlasts, announcements on the City website and social media, multiple workshops, a Housing Element Focus Group, and Planning Commission and City Council study sessions and hearings. This section summarizes our engagement program.
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Branding
A branding package was prepared for the General Plan Update. This included a project logo and style templates for all work products, maps, presentations, and publicity materials. The common branding helps to build recognition for the project and ensures that this effort is distinct in the minds of the community. The logo to the right is used on all materials developed for all Elements being updated during the PlanSolvang General Plan Update process, which includes the 2023- 2031 Housing Element.

Housing Element Webpage
During the development and review of the Housing Element, the City created and maintained a webpage on the PlanSolvang General Plan Update website with a webpage dedicated to the 2023-2031 Housing Element Update. This webpage provided easy access to information on the Project, including general information about Housing Elements and details about workshops and other engagement opportunities. Project documents were posted to the website and comments were encouraged through the provided " Comments" button on each page. A button on the website allowed residents to sign up for the email list.
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https://plansolvang.com/
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https://plansolvang.com/housing
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https://plansolvang.com/documents
Project Business Cards
To encourage the use of the project website, business cards were created for the Project. The cards were provided to the City, distributed at community engagement events, and can be easily handed out to those looking for additional information on the Housing Element Update. Each card lists the project website address and a QR Code that can direct users to that website.

A
B
C
A: Google Translate Tool: This tool allows users to translate the entire website into Spanish.

B: Email and Contact Buttons: These buttons allow users to join the project email list or provide a comment to the project Team.

C: Accessibility Widget: This widget allows users to choose visibility options for greater accessibility 392
Housing Element Overview Newsletter
The Housing Element Overview Newsletter describes what a housing element is, how and why it is being updated, the project schedule, and how to get involved in the Update process. The newsletter provides an overview of the Regional Housing Needs Allocation ( RHNA) process and provides multiple ways to learn about upcoming community engagement opportunities. The newsletter was distributed in both English and Spanish and was made available from the project website.
eBlasts
Email notifications ( eBlasts) are sent out to announce upcoming events and the release of project-related documents.

Email addresses were compiled from those requesting notification from the City and from those signing up on the project website and at project events. As of July 2022, the Housing Element email list has 1,111 subscribers.

Images of the newsletter and an eBlast are included on the following pages. 393
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Public Workshops
Throughout the Housing Element Update, City Staff worked with the consultant team to hold community workshops at critical points in the process.

Workshop # 1: Housing Element Workshop
On Thursday, March 24, 2022, the City of Solvang held a Community Workshop to discuss the Housing Element Update.

The workshop included an introduction to the Housing Element and new State requirements, as well as an opportunity for the public to provide comments on housing concerns in the community.

Comments
Water is a constraint and should be evaluated
The public would benefit from visual examples of twenty dwelling units per acre.

Parcels along Alamo Pintado Road: consider access issues, traffic concerns, and grade Separations when analyzing feasibility at these ( and other) sites.

Provide translation services to engage Spanish- speaking residents and community groups Workshop #2: Housing Opportunity Sites
On Wednesday, May 11, 2022, the City of Solvang held a Community Workshop to discuss the Housing Element Update and potential housing opportunity sites. The workshop included an introduction to the Housing Element and the Regional Housing Needs Allocation, a walkthrough of five vacant sites for consideration, and opportunities for the public to provide comments. A slide from the workshop displaying various vacant sites in the City is shown below. 397
Comments1
Site 1 may have an HOA requirement.

Traffic is an issue. Too many 4-way stops. The corridor is a thoroughfare for traffic moving through the community, and drivers use side streets when traffic backs up. Intersections are dangerous.

The area is a high visibility gateway to the city.

There are compatibility concerns with the adjacent housing.

Sites should not be ruled out early in the process.

Proposed sites back to single family homes.

Access onto Alamo Pintado is constrained and problematic.

Site 3 has privacy landscaping and is sited opposite the hospital emergency room.

Site 4 is hilly, with steep slopes, and sits well above the roadway below. The northern end of the site sits approximately sixty feet above the elevation at the southern boundary.

Site 5 is located at a busy intersection; parcel may have an easement on part, reducing the available acreage.

Parking is impacted in the area, including into adjacent neighborhoods.

With the lack of vacant parcels in the city, these sites should not be disregarded.

The City should consider underutilized commercial and industrial parcels and additional residential sites for pointed rezones, including small sites.

Sites are near new shopping centers and cottages, which impact traffic and parking.

Developers will dictate improvements and feasibility.

There are watershed management issues around the five sites. Sheet flow from Site 3 was reported to flow into roadways leaving debris.

Current residents should be considered.

The Community Design Element identifies a scenic vista that includes these parcels within the boundary. The City also has policy language that discourages development above the grade of the roadway to protect skyline views. These are constraints to multifamily housing types at the proposed sites.

Excessive grading is needed.

For comparison, Alisal Oaks has a 40-foot elevation change and eighty units exist there.

Mixed-use development should be considered.
1 The labeling of the sites since Community Workshop # 2 has changed. Sites 1 and 2 are equivalent to Site A in the Sites Inventory. Site 3 is equivalent to Site B in the Sites Inventory. Sites 4 and 5 are equivalent to Site C in the Sites Inventory.
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Surveys
Housing Needs Survey
The City conducted a Housing Needs Survey from April 20, 2022 to May 21, 2022. Presented in English and Spanish, the Housing Needs Survey provided residents and stakeholders the opportunity to provide input on housing needs, issues, and constraints in the community. The survey was broadcasted to the General Plan and Housing Element Update email list and through local stakeholders and made available on the Housing Element website ( plansolvang. com/ housing).

The Survey had 90 respondents, 89 English respondents, and one Spanish respondent.

An example of the types of questions asked and their responses is below:
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Fair Housing Survey
To further reach out to Solvang’ s residents and disadvantaged groups, such as those affected historically by racial bias, patterns of segregation, and lack of language accessibility, the City sent out a survey via email on July 5, 2022 to assisted living facilities, senior housing facilities, religious groups, and local non-profits including:

Family Connect Memory Care
Atterdag Village of Solvang
Solvang Senior Center
Friendship House
The Golden Inn & Village
Buellton Senior Center
VHA Health
Rancho Santa Ynez Estates
Solvang Senior Apartments
Valley Gardens
Bethania Lutheran Church
Old Mission Santa Inés
First Baptist Church
Santa Ynez Valley Presbyterian
Church
Valley Christian Fellowship
Trinity Baptist Church
Ranch Church
Vikings of Solvang
The Rona Barrett Foundation
Santa Ynez Valley People Helping
People
The Endowment for Youth
Community
Santa Ynez Valley Community
Outreach
The Santa Ynez Valley Foundation
The survey, which included six free-response questions, aimed to gather knowledge on possible barriers to fair housing access and ways to ensure housing security for disadvantaged groups. A reminder for responses was sent to respondents on July 25, and the survey was closed after 48 days on August 22, 2022. One response was received and is shown below. This response was considered in the formation of AFFH evaluation, as well as in the programs under Goal H-5.

Q1: What are the primary housing needs of your clientele/ members of your organization and how serious are those needs ( e.g., anti- displacement, access to opportunity, etc.)? Although several of our members either own or rent their own homes/ apts., the number of seniors who are in need of low-moderate housing has greatly increased.”
Q2: What type of housing- related barriers ( e,g., fair housing, discrimination) have your clientele/ members of your organization experienced?
Affordable safe housing. ADA compliant. Easy access.”
Q3: Do your clientele/ members have a preference on where housing should be located? For example, is there a need to have housing in proximity to public transportation, near commercial services such as commercial centers, schools, parks etc.?
Public transportation and commercial centers. The number of members who are no longer able to drive has increased.”
Q4: Are there specific neighborhoods or areas of Solvang where housing is more difficult for your clients to access? Why?
Generally it has been difficult for them to find safe affordable housing throughout the Valley and Solvang.” 400
Q5: How has the pandemic affected access to housing for your clientele/ members of your organization? Some of our members, those who have been sharing a home or renting a room, are in jeopardy of losing a place to live as homeowners are selling the homes or moving due to fall out of pandemic.” Q6: What is the City currently doing well to address housing- related barriers? How could the City improve its response to the housing crisis?
The City should take a look at their entire population and realize that both affordable senior housing and housing in general is sorely needed. “
Q6: What else could the City do to reduce housing- related barriers? Are there models of what's working well elsewhere that Solvang should research and consider?
No responses were received.
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9. HOUSING
Public Review Draft Housing Needs Assessment, December 2022 | H-23 Review of the Existing Housing Element
This section examines the effectiveness of the 2015 Housing Element, the progress made in achieving the goals, objectives, and policies outlined in the Housing Element, along with a discussion of the Element’ s appropriateness given current conditions within the City of Solvang. This evaluation will inform the policies and programs developed as part of the 2023-2031 Housing Element Update.

Housing Production During the 2015-2023 Planning Period The City’s RHNA for the 2015-2023 planning period was 42 units affordable to very low-income households, 28 units affordable to low-income households, 30 units affordable to moderate income households, and 75 units affordable to above moderate-income households, for a total of 175 housing units. Table H-1 compares units permitted and constructed to the 5th cycle RHNA. Between 2015 and 2022, the City permitted a total of 261 units, including 47 very low-, 33 low-, 66 moderate-income, and 115 above moderate units.

Table H-1 Fifth Cycle ( 2015- 2023) Housing Element Progress Lower Moderate
80-120% AMI)
Above Moderate
120%+ AMI)
Total
Very Low
0-50% AMI)
Low
50-80% AMI)
2015-2023 RHNA 42 28 30 75 175
Permitted Units 47 33 66 115 132
Percent of RHNA
Permitted
112% 118% 220% 153% 133%
Remaining RHNA 0 0 0 0 0
Source: City of Solvang, 2021 Annual Housing Element Progress Report.

Progress Toward Lower and Moderate-Income Housing Goals As shown on Table H-1, the City met and exceeded its RHNA goals for the 2015-2023 period in every income category.

Most impressively, the City approved over twice the projected moderate income housing needs for the planning period.

Solvang’s accomplishment of meeting and exceeding RHNA needs for the fifth cycle is a rare feat among California jurisdictions. As of June 2022, Solvang is one among only 38 jurisdictions statewide that have accomplished this goal, with Carpinteria being the only fellow SBCAG jurisdiction that has also exceeded RHNA projected needs. Much of Solvang’ s lower income housing stock during the planning period was completed in 2016 through the construction of Solvang Senior Apartments, located at 1775 Maple Avenue. The project produced a total of 44 senior-restricted lower income units, 34 very low-income and 10 low-income.
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Progress in Implementation
The 2015 Housing Element established the five major goals with coordinated policies and implementing programs, organized around the following statements:

Preserve and improve housing and neighborhoods;
Promote the production of a diversity of housing;
Provide adequate sites for a variety of housing types;
Remove or mitigate constraints to housing investment;
Promote equal housing opportunity
A summary of progress toward the implementation of each goal is included below. For a detailed evaluation of implementation programs included in the 2015-2023 Housing Element, please see Appendix B.

Preserve and Improve Housing and Neighborhoods
Conserve and improve the quality of existing housing and residential neighborhoods in Solvang.

The City of Solvang made progress on furthering its commitment to conserve and improve housing quality through a variety of measures. In 2018, to help enforce code compliance, the City filled a half-time position for a Code Enforcement Officer. The position was filled by the former Sheriff of Solvang as a contract position. In 2022, City Council approved the development of two additional half-time for Community Service Officer positions to support code enforcement activities. Currently, both positions are vacant. To directly aid with rehabilitating the city’s aging housing stock, the County’ s emPower ( CHERP) program assisted two homeowners in 2018 to improve their household energy efficiency.

The City has additionally eased restrictions on mobile homes with permanent foundations by removing the requirement for a conditional use permit, allowing for easier growth and unobstructed unit upgrading for residents of Rancho Santa Ynez Mobile Home Park. Finally, to help further protect the economically vital Danish and Northern European design theme of the City’s Village Area, the City has started the progress of updating the Community Design Element of the General Plan and the sign regulations in the Solvang Municipal Code. Finally, the City is planning update the City’s Design Guidelines for the Village Area following the completion of the General Plan Update. These updates help ensure continued compliance with the theme for both residential and non-residential development in the TRC and DR zones.

Promote the Production of a Variety of Housing
Facilitate the development of a range of housing types, densities, and affordability levels to meet the diverse needs of the community.

The City of Solvang has worked to promote the production of a variety of housing types. Most notably, as with many other California cities, the introduction of SB 1069 and SB 2299 in 2016 has spurred increases in accessory dwelling unit ADU) growth.

The City has also been working with individual landowners to better assist them with their unique needs. In 2018, the City worked with a landowner directly to allow setback modifications to allow for the construction of a duplex on a formerly single-family lot. As shown in this example, the City continually looks for ways to facilitate the development of a range of housing types to work to meet current and future needs of the community. 403
Provide Adequate Sites for a Variety of Housing Types
Provide adequate sites through appropriate land use and zoning standards to accommodate the City’s share of regional housing needs.

Solvang is a small, built-out city with almost all its 2.43 square mile land already completely developed. Despite this challenging situation, the City is committed to continue monitoring the state of existing underutilized and vacant land to project and promote residential development. The City continues to actively promote mixed-use development in the TRC zone and other commercial areas, which helps improve access to affordable housing and helps areas reach their optimal residential potential. The City also regularly updates its inventory of suitable sites and promotes lot consolidation of small lots for residential development, if needed. During the previous cycle, the City committed to developing an infill incentives ordinance to help encourage infill development among the remaining underutilized parcels in the city. The City was unable to achieve the goal during the planning period and hopes to be able to consider infill development as a goal in its General Plan Update process, which is occurring concurrently with the Housing Element Update.

Remove or Mitigate Constraints to Housing Investment
Where appropriate, mitigate or remove potential governmental constraints to housing production, homeless facilities, and affordability.

Solvang has worked with developers in the past directly to help streamline development processes to allow for greater flexibility through its Planned Residential Development ( PRD) District designation. Most notably, the Skytt Mesa project, which added over two hundred Market rate units of housing to the City, utilized the PRD process to help expedite development and ensure close coordination with City Staff. This project was required to provide $ 250,000 for offsite Senior Apartment affordable units.

Additionally, the City receives funding from the Department of Housing and Urban Development’ s HOME Investment Partnerships Program through the Santa Barbara County HOME Consortium, which Solvang and surrounding municipal jurisdictions are members. The Consortium divides up funding granted by HUD through the HOME program among their constituent jurisdictions. Finally, the City has removed governmental constraints related to evolving State law regarding density bonuses by defaulting to State standards for state density bonus requirements and incentives.

Promote Equal Housing Opportunity
Promote fair and equal housing opportunity for all residents of Solvang.

The City is dedicated to working with local and regional agencies to promote equal access to housing for all individuals.

During the previous planning period, the City made significant progress with the completion of the Solvang Senior Apartments in 2016, which added 44 units of affordable, senior housing to the city’s housing inventory. The project is one of the largest additions of special needs housing in Solvang in the last twenty years. The City has also codified Reasonable Accommodations into its Municipal Code ( Section 11-12-25), addressing the process for requesting modifications or exceptions to regulations to remove barriers to producing housing for those with disabilities. Finally, the City revised the Municipal Code to allow emergency and transitional housing by-right in the R-1, E-1, DR, and PRD zoning districts in 2015, complying with state law and removing barriers to providing housing to those experiencing homelessness. The City will continue to work to provide access to inclusive, accessible housing for all residents. 404
Effectiveness of the 2015 Housing Element
As discussed in the preceding section and in Appendix B, the City implemented several policies and programs to facilitate housing production. Most importantly, the City made great progress in affirming its commitment to affordable housing through the construction of its first deed-restricted housing complex, Solvang Senior Apartments. The project has been instrumental in growing the city’s senior housing inventory, helping provide much needed supply. From encouraging density bonuses to promoting secondary uses in the TRC district, the City recognizes the severity of the housing crisis and has worked progressively to do its part in growing the housing stock wherever feasible to meet RHNA goals. However, in some cases, the City did not have the necessary staff resources or funding to implement programs.

These programs have been continued and expanded in the 2023-2031 Housing Element Policy Document. 405
Demographic and Economic Trends
Population Trends
Table H-2 shows population growth for Solvang, nearby cities, and Santa Barbara County between 2000 and 2021. In 2000, Solvang had a population of 5,415. Between 2000 and 2010, the population dropped to 5,218, representing a decrease of 3.6 percent over the 2000s, however, between 2010 and 2021 the population grew by 8.2 percent to 5,644.

Table H-2 Population Growth Trends 2016 - 2021, with 2010 Benchmark 2000 2010 2016 2017 2018 2019 2020
Solvang 5,415 5,218 5,552 5,650 5,734 5,804 5,644
Buellton 3,832 4,609 5,021 5,087 5,092 5,082 5,276
Lompoc 41,078 41,864 43,678 43,762 43,511 43,232 42,753 Santa
Barbara
92,126 87,859 90,922 91,443 91,325 91,376 90,911
County Total 399,347 416,051 439,395 442,996 443,738 444,829 444,895 Source: 2000 Decennial Census; 2010, 2016-2020 American Community Survey 5-Year Estimates Subject Tables, Table S0101 Figure H-1 provides a comparison of Solvang’ s growth rate to other communities, indexed to the City’s 2010 population.

Solvang’ s population growth has been stagnating the past two decades, with the city experiencing slight declines and increases year-to-year with the population hovering around 5,600 persons. Solvang has grown at a rate comparable to Santa Barbara County during the last planning period.
406
Figure H-1 Population Growth Since 2010
Source: SBCAG, HCD Pre-approved Data Package, State of California, Department of Finance, E-4 Population Estimates for Cities, Counties, and the State, 2011-2021, with 2010 Census Benchmark Note: The data shown on the graph represents population for the jurisdiction, county, and region indexed to the population in the first year shown. The data points represent the relative population growth in each of these geographies relative to their populations in that year.

Data between 2011 and 2015 are interpolated as HCD approved data package provides data for 2010, 2016-2021.

Population Projections
Population growth and other demographic variables are important indicators of the type and number of housing units needed in a community. Population attributes such as age, race/ ethnicity, occupation, and level of income combine to influence the type of housing needed as well as the ability of current and future residents to afford housing.

The Regional Growth Forecast (RGF), produced by the Santa Barbara County Association of Governments (SBCAG), projects population totals for the county through 2050. Shown in Table H-3, these projections show slight population growth for Solvang. In the next three decades, Solvang is projected to gain 500 residents, an increase of 8.6 percent, averaging to 0.3 percent growth per year. Further, projections show that Solvang is expected to grow at a slower pace than Santa Barbara County (13.2 percent growth by 2050), as shown on Figure H-2.

0.00%

2.50%

5.00%

7.50%

10.00%

12.50%

15.00%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Solvang Buellton Lompoc Santa Barbara Santa Barbara County 407
Table H-3 Population Projections, 2020- 2050
2020 2025 2030 2035 2040 2045 2050
Solvang 5,800 6,000 6,000 6,200 6,300 6,300 6,300
Santa
Barbara
County
460,900 478,600 489,900 501,500 513,300 517,500 521,700 Source: Forecast 2050, January 2019, Santa Barbara County Association of Governments.

Figure H-2 Projected Population Growth, 2020- 2050
Source: Forecast 2050 January 2019 , Santa Barbara County Association of Governments.

Age
As people move through different age groups, their housing needs, income levels, and preferences typically change. As a result, an evaluation of the age characteristics of a community is important in addressing the housing needs of its residents. According to the U.S. Census, the median age of residents in Solvang increased from 43 in 2010 to 46 in 2020.

Table H-4 below summarizes the age characteristics of Solvang residents in 2010 and 2020. During the 2010s, the number of seniors ( ages 65+) increased by 10.1 percent, which indicates an aging population. Additionally, between 2010 and 2020, the number of school age children increased by 26.7 percent.

A decrease of 17.4 percent between 2010 and 2020 was evident among college age (20-24) residents. It remains one of the smallest segments of the population ( besides preschool children five and under). It is common for members of this age group to live away from home while attending schools outside the community. Some college age residents may opt

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%
2020 2025 2030 2035 2040 2045 2050
Solvang Santa Barbara County
408
to stay at home and commute to school, however, this seems unlikely as the closest institutions are located in Lompoc and Santa Barbara, requiring 30- and 45-minute commutes, respectively.

Table H-4 Age Characteristics and Trends 2010- 2020
Age Groups 2010 2020 2010- 2020
Persons % Persons % % Change in Persons
Preschool
Ages <5)
282 5.4% 159 2.8% - 43.6%
School Age ( 5-19) 840 16.1% 1,064 18.9% + 26.7%
College Age
20-24)
224 4.3% 185 3.3% - 17.4%
Young Adults ( 25-44) 1,237 23.7% 1,056 18.7% - 14.6%
Older Adults ( 45-64) 1,602 30.7% 1,495 26.5% - 6.7%
Seniors ( 65+) 1,033 19.8% 1,685 29.9% + 10.1%
Total 5,218 100% 5,644 100% + 8.2%
Sources: 2010 American Community Survey 5-Year Estimates Subject Tables, Table S0101; 2020 American Community Survey 5-Year Estimates Subject Tables, Table S0101.

Race and Ethnicity
The racial and ethnic composition of a community may have implications for housing to the extent that different groups have different household characteristics, income levels, and cultural backgrounds that affect their needs and preferences for housing. Table H-5 shows racial demographic trends from 2000 to 2020. As of 2020, white residents represent the largest race/ ethnic group in Solvang, at 68 percent, however this is a decline of 14 percent from 82.5 percent in 2010. Conversely, households identifying as two or more races showed the only significant growth during this period. Multiracial households in Solvang increased from 2.7 percent of the population in 2010 to 15.2 percent in 2020.

The next largest percentage change in population between 2010 and 2020 was among residents identifying as Hispanic/ Latino. As shown in Table 4-3, the Hispanic/ Latino share of the population increased from 29.2 percent in 2010 to 30 percent in 2020. Black, American Indian, and Asian populations also grew in Solvang during this time; however, no growth was seen among the Native Hawaiian and Pacific Islander demographic. 409
Table H-5 Racial Demographics, 2000- 2020
2000 2010 2020
Persons % Persons % Persons %
White 4,090 76.7% 4,326 82.5% 4,161 68%
Black or African American 16 0.3% 38 0.7% 50 0.8%
American Indian and Alaska
Native
19 0.3% 59 1.1% 81 1.3%
Asian 54 1% 72 11.8% 115 1.9%
Native Hawaiian and Pacific
Islander
0 0% 1 0.2% 0 0%
Some Other Race ND ND 611 11.6% 789 12.9%
Two or More Races ND ND 138 2.7% 930 15.2%
Hispanic or Latino 1,059 19.8% 1,530 29.2% 1,835 30%
Source: 2000 Decennial Census; 2010, 2020 Decennial Census, Table P1 and Table P2.

Note: This table compares Census data, which differs slightly from American Community Survey estimates of Forecast 2050 projections. In Census data, “Two or More Races” and “ Hispanic or Latino” are separate data points from racial groups listed in the top section of the table. Total population for Census counts can be determined by adding together all of the top rows.

ND= No Data
Income
Household income is one of the most important factors affecting housing opportunity and determining a household’ s ability to balance housing costs with other necessities of life. Income levels can vary considerably among households, based upon tenure, household type, and location of residence, among other factors.

According to the 2020 Census, the median household income of Solvang residents is $82,838, five percent above the median statewide household income of $ 78,672. This higher median household income reflects the changing demographics of Solvang. As of 2020, Solvang’s population has progressed to favor older, higher-income, households that can afford to purchase a home in Solvang. Younger people, often service sector workers at the core of the city’s tourist industry, have fewer affordable housing options and are more willing to share units to reach an affordable price point. Lower income residents have few housing options within the city limits, especially given income, rental history, and credit check requirements associated with accessing market rate housing.

Table H-6 shows income distributions for the City of Solvang. Among families and married couple families, households with income of $200,000 or more occupy the largest percentage of households. Households with income of $200,00 or more make up 25.0 percent of family households and 30.7 percent of married couple family households. Combined with low percentages of low earning households, this illustrates a high level of affluence among these household types. 410
Table H-6 Income in The Past 12 Months ( In 2020 Inflation- Adjusted Dollars) Household Total family
Households
Married couple family
households
Nonfamily
households
Less than $10,000 2.30% 2.40% 3.10% 2.20%
10,000 to $14,999 2.80% 2.40% 0.00% 3.50%
15,000 to $24,999 3.80% 3.00% 3.90% 5.20%
25,000 to $34,999 4.10% 3.40% 4.50% 5.40%
35,000 to $49,999 8.30% 9.10% 8.30% 7.00%
50,000 to $74,999 22.70% 14.80% 14.90% 36.40%
75,000 to $99,999 16.80% 16.80% 12.80% 19.80%
100,000 to $149,999 13.50% 11.70% 12.30% 13.60%
150,000 to $199,999 9.10% 11.40% 9.70% 5.10%
200,000 or more 16.50% 25.00% 30.70% 1.80%
Total 2,392 1,515 1,158 877
Median income
dollars)
82,838 98,848 111,379 67,044
Source: 2020 American Community Survey 5-Year Estimates Subject Tables, Table S1901.

Note: Married couple family households are a subset of Total Family Households. Of 1,515 total family households, 1,158 are married couple family households.

Household Trends
Household characteristics, such as type and size, income levels, and the presence of special needs populations, determine the type of housing needed by residents. This section details the various household characteristics affecting housing needs.

Household Tenure
Household tenure, or the status of homeownership or renting, is an important indicator of the types of housing issues that can arise in a region and can help determine what programs work best to help the populace. Tenure can also be a determination of a city’s affordability for settling down and owning property.

Solvang’ s households are primarily composed of homeowners, with 59 percent of the city owning their homes and 41 percent of the city renting their homes ( Table H-7). This high rate of homeownership is similar to other cities in California that are primarily composed of single-family residences, but higher than Santa Barbara County where 52 percent of county residents own their home.
411
Table H-7 Existing Households by Tenure
Renters Owners Total
Amount % of
Municipality
Amount % of
Municipality
Amount
Solvang 986 41.2% 1,406 58.8% 2,392
Buellton 706 34.5% 1,343 65.5% 2,049
Santa Barbara County 70,805 47.7% 77,504 52.3% 148,309
Sources: 2020 American Community Survey 5-Year Estimates Subject Tables, Table B25003.

Tenure Trends
Over the last ten years, the share of renter and owner-occupied households have increased at a rate around 12 percent, a figure equivalent to 112 new renter occupied households and 144 new owner- occupied households being added to the market. The increase in owner- occupied households is attributed to the construction of the Skytt Mesa subdivision between 2009 and 2018.

Table H-8 Change in Number of Households by Tenure, 2010- 2020 2010 2020 Growth
Number % Number % Number %
Renters 874 40.9% 986 37.7% + 112 + 12.8%
Owners 1,262 59.1% 1,406 62.3% + 144 + 11.4%
Total Households 2,136 - 2,392 - + 256 + 12.0%
Sources: 2020 American Community Survey 5-Year Estimates Subject Tables, Table B25009; 2010 American Community Survey 5-Year Estimates Tables B25003
Household Size
Household size is a factor that can help inform the types of housing in demand for the planning cycle. It can also signify possible overcrowding. Table H-9 shows the household size in Solvang by tenure. According tothe 2020 Census, Solvang has a total of 2,380 households, of which a majority are composed of two to four persons. The high proportion of two to four person households reflects the long history of single-family housing development in Solvang. 412
Table H-9 Household Size by Tenure
Owner occupied Renter occupied Total
Living Alone 230 389 619
2-4 persons 1,094 572 1,666
5+ persons 82 25 107
Total 1,406 986 2,392
Sources: 2020 American Community Survey 5-Year Estimates Subject Tables, Table B25009 Overcrowding
Overcrowding occurs when the number of people living in a household is greater than the home was designed to accommodate. There are several different standards for defining overcrowding, but this report uses the Census Bureau definition, which is more than one occupant per bedroom. Further, housing units with more than 1.5 occupants per room are defined as being severely overcrowded.

Table H-10 shows Solvang’ s rate of overcrowding and severe overcrowding. According to the American Community Survey, there are approximately 2 overcrowded and 49 severely overcrowded households in Solvang, all of which are renter occupied units. Renter occupied units, despite accounting for just over a third of the city’s housing stock, account for all overcrowded households with an occupancy per room rate greater than one. Among renter occupied units, 5 percent are severely overcrowded.

Severe overcrowding among rental households in Solvang reflects a lack of affordable housing in the city. Overcrowding and severe overcrowding are more likely to be experienced by lower wage retail, service, and agricultural jobs that support the tourism and agricultural industry at the heart of Solvang and the Santa Ynez Valley, respectively. As such, there is a high demand for rental housing in the planning period.

Table H-10 Overcrowding in Solvang, 2019
Designed Occupancy

1.00 OPR)
Overcrowding

1.00 – 1.50 OPR)
Severe Overcrowding

1.51 OPR)
Renters Owners Renters Owners Renters Owners
Solvang 935 1,406 2 0 49 0
Percent of Tenure
Households

94.8% 100.0% 0.2% 0.0% 5.0% 0.0%
Percent of all Households 97.9% 0.1% 2.0%
OPR = occupants per room
Source: 2020 American Community Survey 5-Year Estimates Subject Tables, Table B25014 Housing Growth
Solvang has experienced moderate housing stock growth since 2011. As shown on Table H-11, 256 new units were built, equating to a 12 percent increase over ten years. As of 2020, Solvang has 2,392 housing units. Solvang’ s growth has been slower than nearby Buellton, which experienced a greater housing stock increase of 36.0 percent, the highest in 413
Santa Barbara County. This disparity in growth can be primarily attributed to Solvang being mostly built out in 2010 while Buellton developed large amounts of their vacant land for residential development in the 2010s.

Table H-11 City and County Housing Growth Trends 2011- 2020 County/ City 2010 2020 Percent
Solvang 2,136 2,392 + 12.0%
Buellton 1,507 2,049 + 36.0%
Lompoc 13,420 13,216 - 1.5%
Santa Barbara 35,335 37,806 + 7.0%
County Total 141,793 148,309 + 4.6%
Sources: 2010 American Community Survey 5-Year Estimates Subject Tables, Table B25009; 2020 American Community Survey 5-Year Estimates Subject Tables, Table B25009
Housing Projections
For the 2023-2031 planning period, as with previous periods, the Santa Barbara County Association of Governments SBCAG) assigned a portion of its Regional Housing Needs provided by the California Department of Housing and Development to the City of Solvang according to projected regional jobs growth over time, among other factors ( for more detailed documentation of the methodology, see the Housing Resources section). The result of the process is Solvang’ s Regional Housing Needs Allocation ( RHNA), which serves as a projection of housing needs during the 2022-2031 planning period ( Table H-12).

The RHNA states that Solvang is projected to need 191 total units by 2031. The identified housing need is almost evenly split between lower-income and higher-income designations.

Table H-12 Projected Housing Needs in Comparison to Nearby Jurisdictions Lower
Moderate
Above
Moderate
Total Extremely
Low
Very Low Low
Solvang 27 28 39 22 75 191
Buellton 55 37 30 43 165
Lompoc 166 262 311 1,509 2,248
Santa Barbara 2,147 1,381 1,441 3,032 8,001
Santa Barbara County 5,799 3,935 4,397 10,725 24,856
Source: SBCAG, HCD Pre-approved Data Package, State of California Department of Housing and Community Development, 2021. 414
Employment Trends
Employment also has an important impact upon housing needs. Varying jobs and income levels determine the type and size of housing a household can afford. According to the 2020 Census, 61.2 percent of Solvang residents over the age of 16 (2,877 individuals) are in the labor force. High labor force participation rate has led to a low unemployment rate of

2.6 percent.

Employment by Industry
Table H-13 shows the types of occupations held by residents in Solvang and Santa Barbara County by industry. The four largest occupational categories in Solvang were arts, entertainment, and recreation, and accommodation and food services ( 29.6 percent); manufacturing ( 14.6 percent); educational services, and health care and social assistance ( 13 percent); and professional, scientific, and management, and administrative and waste management services ( 12.3 percent). These categories account for 69.5 percent of employed residents. As described previously, given the town' s relatively small size, it can be inferred that a majority of those employed in managerial and professional occupations travel to work outside the City. Solvang has a significant share of workers in service industry positions due to its economic base in tourism.

Solvang' s occupational profile is similar to that countywide, with the exception of a larger share of City residents in service occupations and a smaller share in production, transportation, and material moving. These differences reflect Solvang' s tourism- based economy as well as its geographic location. 415
Table H-13 Employment by Industry, 2020
Solvang Santa Barbara County
Estimate % Estimate %
Agriculture, forestry, fishing and hunting, and
mining
16 0.6% 15,852 7.8%
Construction 117 4.2% 12,946 6.4%
Manufacturing 489 17.8% 15,502 7.6%
Wholesale trade 55 2.0% 3,726 1.8%
Retail trade 189 6.9% 21,408 10.5%
Transportation and warehousing, and utilities 85 3.1% 6,703 3.3% Information 32 1.2% 4,300 2.1%
Finance and insurance, and real estate and
rental and leasing
168 6.1% 10,603 5.2%
Professional, scientific, and management,
and administrative and waste management
services
417 15.1% 23,924 11.7%
Educational services, and health care and
social assistance
330 12.0% 48,884 24.0
Arts, entertainment, and recreation, and
accommodation and food services
549 19.9% 20,337 10.0%
Other services, except public administration 157 5.7% 9,017 4.4% Public administration 150 5.4% 10,476 5.1%
Total Jobs 3,070 213,438
Source: 2020 American Community Survey 5-Year Estimates Subject Tables, Table DP03.

Job Projections
Job projections serve as an important forecasting tool to help plan for future housing need. Over the next thirty years, SBCAG expects that City will gain approximately 900 jobs, which shows a much lower rate of growth ( 1.8 percent) compared to the County as a whole ( 21.4 percent). Between 2020 and 2030, the period that represents the current Housing Element planning cycle, SBCAG expects the city to gain approximately 390 jobs. 416
Table H-14 Job Forecast, 2020- 2050
2020 2025 2030 2035 2040 2045 2050 2020- 2050 Growth
Rate
Solvang 4,210 4,480 4,600 4,730 4,860 4,980 5,110 1.5%
Santa
Barbara
County
231,150 245,900 252,710 259,710 266,900 273,710 280,700 21.4% Source: Forecast 2050, January 2019, Santa Barbara County Association of Governments. 417
Housing Conditions
Housing Type
In recent years, most housing produced in the region and across the state consisted of single-family homes and larger multi-unit buildings. However, some households are increasingly interested in “ missing middle housing,” including duplexes, triplexes, townhomes, cottage clusters, and other multifamily housing types compatible in massing and scale with traditional single-family housing types. These housing types may open up more options across incomes and tenure, from young households seeking homeownership options to seniors looking to downsize and age-in-place.

Figure H-3 provides a breakdown Solvang’ s housing stock by type. In Solvang, detached single-family homes are the most common housing type, making up 58.4 percent of housing stock in 2021. By comparison, multifamily dwelling units comprise 36.7 percent of the housing stock and mobile homes account for the remaining 5 percent.

Figure H-3 Housing Units by Type, 2021
Source: 2020 American Community Survey 5-Year Estimates Subject Tables, Table DP04.

Note: This graphic includes all housing units in Solvang, a total of 2,522 units. Approximately 2,392 units are occupied and 130 are vacant.

Table H-15 shows the change in housing stock in Solvang between 2010 and 2020. During this time, composition of the housing stock mostly the same. The greatest shift occurred with a greater share of five plus housing units per structure and a smaller share of two to four housing units per structure. Significant gains in single detached ( 30.7 percent growth) housing are the result of the completion of the Skytt Mesa subdivision during the 2015-2023 planning period.

Single Detached
1639 units
65%
Single Attached
155 units
6%
Two to Four
66 units
3%
Five Plus
526 units
21%
Mobile Homes
136 units
5%
418
Table H-15 Housing Units by Type – Change over Time, 2010- 2020 2010 2020 Percent Change
Single Detached 1,254 1,639 + 30.7%
Single Attached 136 155 + 14.0%
Two to Four 226 66 - 70.8%
Five Plus 470 526 + 11.9%
Mobile Homes 121 136 + 12.4%
Total 2,207 2,522 + 0.6%
Source: 2010 American Community Survey 5-Year Estimates Subject Tables, DP04; 2020 American Community Survey 5-Year Estimates Subject Tables, DP04.

Vacancy Rate
Vacancy rate is defined as the share of housing units currently without a permanent occupant. It serves as an important measure of the availability of and demand for housing. A low level of vacancy indicates high demand for and relatively limited supply. Solvang’ s current vacancy rate is 5.2 percent, a similar rate to the 6.3 percent county- wide vacancy rate reported in the 2020 Census ( Table H-16).

Table H-16 Occupancy Status
Units %
Occupied Housing Units 2,392 94.8%
Vacant Housing Units 130 5.2%
Total Housing Units 2,522
Source: 2020 American Community Survey 5-Year Estimates Subject Tables, Table DP04 Table H-17 shows the type of vacancies present in Solvang. There are no rental properties that are vacant or available, indicating a high demand that has completely exhausted supply. There is also a low number of for-sale vacancies, indicating a low supply for owner occupied homes with high present demand.

Census data also notes that there are 20 vacant seasonal use units. This use could be of concern for a small touristoriented municipality like Solvang, however, the City actively regulates short-term rentals through its short-term/vacation rental ordinance. The ordinance was codified into the Municipal Code in 2016, barring short term rentals outside of the Tourist Related Commercial (TRC) Zone, or Village Area, and certain properties between addresses 1506 and 1546 Copenhagen Drive. Such ordinances have kept vacancy rates low despite high tourism demand for short-term rentals see the Governmental Constraints section for further analysis).

The most common type of vacancy is “ other,” which includes properties in some type of transitional process. For example, a housing unit that has been sold and is awaiting a legal transfer or is currently involved in a legal dispute. This classification, however, does not provide much insight into the state of Solvang’ s housing market. 419
Table H-17 Housing Stock by Type of Vacancy
Units Percent
For rent 0 0.0%
Rented, not occupied 0 0.0%
For sale only 35 1.4%
Sold, not occupied 0 0.0%
For seasonal, recreational, or occasional use 20 0.8%
For migrant workers 0 0.0%
All other vacant units 75 3.0%
Occupied Units 2,392 94.8%
Total Units 2,522
Source: 2020 American Community Survey 5-Year Estimates Subject Tables, Table B25004 Housing Age and Condition
Housing age can be used as an indicator of housing conditions within a community. Like any other tangible asset, housing is subject to gradual deterioration over time. If not properly and regularly maintained, housing can deteriorate and discourage reinvestment, depress property values, and eventually impact the quality of life in a neighborhood. Given the mostly built out nature of Solvang, most homes are already over thirty years old. Consequently, maintaining and improving housing quality is an important goal for the City of Solvang.

Table H-18 provides a breakdown of the City's housing stock by year built. As of 2020, approximately 75 percent of the City's housing units are over 30 years old. A general rule in the housing industry is that structures older than 30 years begin to show signs of deterioration and require reinvestment. Unless properly maintained, homes older than 50 years usually require major renovations to remain in good working order. Given the high amount of capital flowing into Solvang through new residents, it is expected that many older units are being actively rehabilitated by both new homeowners and long-time homeowners to improve property values and resale prospects. For example, a review of listings in August 2022 on Zillow reveals several homes built before 1980 that have had extensive refurbishment to meet the demands of new, wealthier buyers. Many of these refurbished homes, despite their smaller size compared to newer single-family residences, are able to sell for upwards of $750,000 with their modern updates. Given this trend, it could be surmised that around four percent of the City’s housing units need some form of renovation to meet modern housing standards. 420
Table H-18 Solvang Age of Housing Stock
Year Structure Built Estimate Percent
Built 2014 or later 87 3.4%
Built 2010 to 2013 42 1.7%
Built 2000 to 2009 91 3.6%
Built 1990 to 1999 401 15.9%
Built 1980 to 1989 699 27.7%
Built 1970 to 1979 515 20.4%
Built 1960 to 1969 250 9.9%
Built 1950 to 1959 271 10.7%
Built 1940 to 1949 28 1.1%
Built 1939 or earlier 138 5.5%
Total 2,522 100%
Source: 2020 American Community Survey 5-Year Estimates Subject Tables, Table B25034.

Affordable Housing At-Risk of Conversion
In Solvang, there are no publicly subsidized housing units, both senior restricted and non-senior restricted, deemed to be at-risk of conversion to market rate units during the 2023-2031 planning period. The City does not have a redevelopment agency and has not used Community Development Block Grant funds for housing. Table H-19 summarizes publicly assisted units in Solvang by income category.

Table H-19 Assisted Units at Risk of Conversion
Low Moderate High Very High
Solvang 44 0 0 0
Source: SBCAG, HCD Pre-approved Data Package, California Housing Partnership Corporation.

These 44 units of deed restricted affordable housing originate from the completion of Solvang Senior Apartments, the first deed restricted affordable housing complex in the city built in 2016. The project was heavily subsidized by in-lieu fees collected from the completion of the Skytt Mesa single-family residential subdivision earlier in the previous planning period. Solvang Senior Apartments also received a density bonus and two incentives in accordance with density bonus law.
421
Table H-20 Affordable Unit Inventory
Development Total Units Affordable
Units
Subsidy Type Deed
Restrictions
Expire
Risk of MarketRate Conversion
Solvang Senior Apartments
1758 Laurel Avenue
45 44 Low Income
Housing Tax Credit
LIHTC)
2068 Low
TOTAL 45 44
Source: SBCAG, HCD Pre-approved Data Package, California Housing Partnership Corporation.

Finally, there are two residences within the city located on land designated for residential use that are targeted for conversion to non-residential uses. These residences are being relocated, and neither unit was previously affordable to lower- or moderate- income households by deed-restriction. No affordable units in the past fifteen years have been converted to non-residential uses.

Cost of New Affordable Housing
According to a March 2020 study by the U.C. Berkeley Terner Center for Housing Innovation, low-income housing funded with Low Income Housing Tax Credit ( LIHTC) 9-percent tax credit funding ( which includes many deed restricted lowincome properties) has an average cost of over $500,000 per unit statewide. This is a staggering figure that reflects the increasing severity of the housing crisis. The report breaks down this figure into the variables associated with constructing low-income housing, such as location- related costs, development fees, and construction material costs.

The report concludes that currently, material and labor costs are the primary source of rising costs for affordable housing development.

The report also presented information on the costs of construction by region, which influence the total cost of housing tremendously. The study inventoried 71 LITHC 9-percent new construction projects between 2008 and 2019 in the Central Coast region, where Solvang is located. Considering contemporary projects, the study estimates that the current average price per square foot of LIHTC development in the Central Coast region is approximately $ 500 per square foot.

This valuation equates to nearly $ 150,000 needed for the development of a 300 square foot studio, or $475,000 for a 950 square foot two-bedroom apartment. Given these high costs of producing new affordable housing, the City of Solvang is committed to preserving existing affordable units and promoting housing rehabilitation ( see Programs HE-B and HE-D).

The City is also committed, through Program HE-I, to continuously update a posted list of grants and loans available to the City, such as Community Development Block Grant (CDBG) funds, which provides an updated list of potential funding sources to preserve affordable housing. In the event that the City applies to State and Federal housing grant funds, since the City has not used any affordable housing fund grants, the City is eligible for the total amount of State and Federal grants they are awarded. The City does not have a redevelopment agency successor to collect funds from. Solvang is eligible for the CalHome grant program, which allows for local public agencies and nonprofit corporations to receive funding to assist first-time homebuyers and those needing housing rehabilitation. 422
Qualified Entities for Acquiring and Managing Affordable Housing The Housing Authority of Santa Barbara County ( HASBARCO), Santa Barbara County’ s established public housing provider, is a qualified public entity for acquiring and managing affordable housing within Solvang. People Self-Help Housing, a nonprofit housing organization that manages rental properties, operates innovative homeownership programs, and provides services to assist disadvantaged communities, including low-income households, families, farmworkers, seniors, veterans, persons living with disabilities, youth transitioning out of foster care, and those formerly experiencing homelessness, is a qualified private entity for acquiring and managing affordable housing within Solvang.

Overpayment
Between 2006 and 2013, home prices decreased in Solvang, matching nationwide trends following the Great Recession.

Since 2013, however, the median home price has increased greatly, with homes averaging $ 1.42 million in May 2022 see Figure H-4 for more details). Home values have increased approximately 199 percent between 2000 and 2022. This drastic increase matches similar home value growth statewide, which has made homeownership much less attainable to young professionals, middle class families, and lower income families. As a result of these increases, residents across the country have been forced to pay for housing that is well beyond their means. The story is the same in Solvang, with both renters and homebuyers facing a challenging housing market with low supply that pushes residents to choose any options available, even if they are suboptimal and/ or beyond a third of their monthly income.

Additionally, with Solvang’ s rising senior population, senior households may be at more extreme risk of being affected by overpayment. With fixed incomes and low flexibility to provide cash immediately, seniors can easily become housing insecure with market rate changes ( see Special Housing Needs).

Among all households in Solvang, approximately 36.7% have a housing cost burden greater than 30 percent of median family income. Approximately 18.9% have a housing cost burden greater than 50 percent of median family income.

Solvang City CouncilJanuary 23, 2023

Solvang City Council
January 23, 2023