Solvang City Council
January 27, 2025

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. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally 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 of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

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 in an 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 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. 14 169
To the Honorable Mayor and Members of the City Council
of the City of Solvang
Solvang, California

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 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 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 in the 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 December 31, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
December 31, 2024
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Management’s Discussion and Analysis
This section of the City of Solvang’s Annual Comprehensive Financial Report presents a narrative overview and analysis of the City’s financial activities during the fiscal year that ended on June 30, 2024. Please read it in conjunction with the City's transmittal letter (in the Introductory Section) on pages 3-6 and the audited financial statements, which follow this section.

Financial Highlights
 Citywide, the total net position increased by $5.9 million or 10.3% higher than 2022-2023 after conducting all operations and programs. The net position totaled $63.8 million dollars at yearend. Of that amount, $31.8 million (the unrestricted net position) may be used to meet the City’s ongoing obligations and operating expenses for the next fiscal year. The increase is due to increased tax revenues and higher revenues generated from Utility Services.  Overall, Citywide revenues from governmental activities, grants and taxes increased approximately $2.2 million compared to the 2022-2023 fiscal year. This increase is mainly due to the first full year of collections of the 1% Measure U sales tax initiative and an increase in interest revenue.
 The General Fund reported a fund balance of $22.7 million at the end of the 2024 fiscal year:
an increase of approximately $5.1 million or 28.9% above the fiscal year 2022-2023 balance.

Per the Combined Reserve and Fund Policy, 50% of the current year operating budget is committed for the emergency contingencies which of the $22.7 million, $6.6 million is committed to emergencies. The Emergency Contingency decreased $639 thousand due to expenses being decreased.
 Transient Occupancy Tax rose approximately $505 Thousand or 7.4% from fiscal year 2022- 23, primarily driven by the reopening of a hotel following its restoration.  The City’s Governmental activities reported a net position of $38.4 million dollars. Of the $38.4 million dollars, $19.8 million remains unrestricted and available.  Impact Fees ended FY 2023-2024 with a fund balance of $1.7 million; an increase of approximately $99 thousand from FY 2022-2023. The increase is primarily due to a reduction in Capital Improvement Projects being funded by Impact Fees.  The Proprietary funds ended the fiscal year with a net position of $25.3 million (including the funds’ net investment in capital assets).
 The City’s other non-major governmental funds ended FY 2023-2024 with a fund balance of $2.8 million, an increase of $908 thousand from FY 2022-2023. The increase is due in part to a reduction in Measure A and Highway Users Tax funds being used to fund projects.

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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 the City of Solvang’s assets, liabilities, deferred outflows and inflows of resources 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 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 the funds of the City of Solvang can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. These statements focus on individual parts of the City government, reporting the City's operations in more detail than the governmentwide statements. The governmental funds statements tell how general government services like public safety, general government, community services, public works, and streets were financed in the short-term as well as what remains for future spending.

Proprietary fund statements offer short and long-term financial information about the activities the government operates like businesses, such as the City's water, wastewater, parking, pier and transit systems.

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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 42-44 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 enterprise 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 major funds of the City of Solvang. Conversely, the internal service fund is a single presentation in the proprietary fund financial statements.

The basic proprietary fund financial statements can be found on pages 48-52 of this report.

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Management’s Discussion and Analysis
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’s 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 fund. 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 for the financial statements can be found on pages 52-87 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 fund 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 90-97 of this report.

The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information on the City’s pension liability. Combining and individual fund statements and schedules can be found on pages 102-112 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 $63,782,779 at the close of the most recent fiscal year.

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Management’s Discussion and Analysis
City of Solvang Net Position
The largest portion of the City of Solvang’s net position (49.9%) is unrestricted and may be used to meet the government’s ongoing obligations to its citizens and creditors.

An additional portion of the City of Solvang’s net position (7%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $27.5 million 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.

At the end of the current fiscal year, the City of Solvang can 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.

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Management’s Discussion and Analysis
The City of Solvang’s overall net position increased by $5.9 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 78% 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 40% of all governmental-type revenues. In fiscal year 2023-24, local hotel tax increased approximately $505 Thousand or 7.4% from fiscal year 2022-23.

The City’s governmental-type operating expenses consist of public safety, culture and recreation, public works, general government, and community development.

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Management’s Discussion and Analysis
When all operations were concluded, the governmental activity’s function generated an increase of $5.2 million in net position for FY 2023-24.

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Management’s Discussion and Analysis
Business-type Activities. For the City of Solvang’s business-type activities, the City’s net position increased, ending the year with a balance of $25,352,220. The increase in net position for business-type activities (water, wastewater, and transit funds) was approximately $780 thousand from the prior fiscal year. Water revenue increased by 3.8% primarily due to the five-year rate increases that came into effect August 2022. FY 2023-24 was year 2 of 5 of the current rate structure. Water expenses increased by 17.2%. This increase is mainly due to an increase in Capital Improvement Projects, salaries and benefits as well as an increase in operating expenses such as energy and fuel. Wastewater revenue increased by 16.53% due primarily to the new sewer rates that came into effect the same time as the water rates mentioned above. Wastewater expenses increased by 8.9%. This increase can also mainly be attributed to an increase in salaries and benefits as well as an increase in energy and fuel costs. Transit expenses decreased by 4%. The decrease is attributed to no Capital Improvement Projects being complete in FY 2023-24
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.

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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.

As of June 30, 2024, the City of Solvang’s governmental funds reported combined fund balances of $27,172,342, an increase of $6,074,096 in comparison with the prior year. Approximately 58% of this amount ($15,750,983) constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either nonspendable, restricted, assigned, or committed, to indicate that it is 1) not in spendable form ($56,257) 2) restricted for particular purposes ($4,464,873), 3) committed for particular purposes ($6,627,743), or assigned for particular purposes ($272,486). The increase in governmental funds from fiscal year 2022-23 to fiscal year 2023-24, was due primarily to new tax revenues (Measure U) as well as an increase in TOT, sales and property taxes and interest received.

The general fund is the primary operating fund for the City of Solvang. At the end of FY 2023- 24, the unassigned fund balance of the general fund was $15,764,993, while total fund balance increased to $22,747,794.

$- $5,000 $10,000 $15,000 $20,000
Nonspendable
Restricted
Committed
Assigned
Unassigned
Thousands
General Fund
Components of Fund Balance
June 30, 2024 and 2023
2024
2023
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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 $8,303,826 and $1,978,827 respectively. Total net position for Water increased by $483 thousand. The Wastewater fund increased its net position by $321 thousand. The Wastewater Division shows an operating surplus due to increased revenues, mainly new utility rates. FY 2023- 24 is year 2 of an approved 5-year rate increase.

Transit operations unrestricted net position totaled $1,727,711 an increase of $64,171 from fiscal year 2022-23. Transit operations’ total net position decreased less than 1%. This is primarily due to the slight decrease in Transit fund revenues.

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
Temporary Agency Services Public Works $ 10,000 $ 80,000 $ 70,000 Repairs & Maintenance Public Works $ 45,000 $ 121,000 $ 76,000 Legal Fees Administration $ 130,000 $ 216,000 $ 86,000
Professional Services Administration $ 34,800 $ 167,800 $ 133,000

Total $ 365,000

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Management’s Discussion and Analysis
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 $ 4,900,000 $ 6,816,288 $ 1,916,288 Interest Income $ 335,000 $ 883,532 $ 548,532
Sales Tax $ 4,021,200 $ 4,405,802 $ 384,602
Property Tax $ 1,477,254 $ 1,821,765 $ 344,511
Notable differences, between estimated expenditures and actual expenditures by function were as follows:

Expenditures
Final Budgeted
Expenditures
Actual
Expenditures Difference
General Administration $ 1,768,647 $ 1,472,507 $ ... (296,140) Community Development $ 1,164,191 $ 940,107 $ (224,084) Parks and Recreation $ 474,498 $ 268,631 $ (205,867)
Public Works $ 3,739,247 $ 3,197,920 $ (541,327)
Sheriff Contract $ 3,000,000 $ 2,856,936 $ (143,064)
Most of these differences were due to lower-than-expected salaries and contracted services.

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, 2024, amounts to $27,514,638 (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. Investment in capital assets decreased by 3.36%. Major capital asset events (greater than $100K) during fiscal year 2023-24 include the following:

WWTP Upgrade Phase 2 (In Progress) $ 192,747
John Deere Loader (WWTP) $ 133,055
Additional information on the City of Solvang’s capital assets can be found in Note 5 on pages 74- 75 of this report.

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 2023 for estimated claim obligations and has no current obligation for 2024. This liability was fully funded and paid in 2023, and there were no pending claims at the end of the fiscal year.

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Management’s Discussion and Analysis
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 76 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 2024-26 two-year fiscal budget:
 In June 2023, 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.
 In 2022, an annual increase in water and wastewater rates were 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 higher interest revenues than were budgeted for from our investments in the State Wide Local Agency Investment Fund and Five Star Bank. Interest rates have begun to decline and this will be addressed during the budget process for FY 2024-26.  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 continues 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.

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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 Administrative Services Director at:

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

FINANCIAL STATEMENTS
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GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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City of Solvang
Statement of Net Position
June 30, 2024
Governmental
Activities
Business-Type
Activities Total
ASSETS
Current assets:

Cash and investments $ 26,790,785 $ 9,538,907 $ 36,329,692 Taxes receivable 8,949 - 8,949
Accounts receivable 1,970,784 1,324,863 3,295,647
Due from other government 76,502 - 76,502
Lease receivable - 10,928 10,928
Interest receivable 112,049 42,492 154,541
Deposits - 636,970 636,970
Prepayments 56,257 2,143,364 2,199,621
Total current assets 29,015,326 13,697,524 42,712,850
Noncurrent assets:

Loans receivable 17,838 - 17,838
Lease receivable - 163,158 163,158
Capital assets:

Capital assets not being depreciated 2,826,188 904,935 3,731,123 Capital assets being depreciated, net 11,346,594 12,436,921 23,783,515 Total capital assets 14,172,782 13,341,856 27,514,638
Total noncurrent assets 14,190,620 13,505,014 27,695,634 Total assets 43,205,946 27,202,538 70,408,484

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 1,711,812 570,604 2,282,416 Deferred outflows - OPEB 276,433 92,145 368,578
Total deferred outflows of resources 1,988,245 662,749 2,650,994 Primary Government
See accompanying Notes to Basic Financial Statements.
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Governmental
Activities
Business-Type
Activities Total

LIABILITIES
Current liabilities:

Accounts payable 500,234 280,946 781,180
Deposits 90,210 - 90,210
Unearned advances 27,941 - 27,941
Compensated absences, due within one year 30,000 30,000 60,000 Total current liabilities 648,385 310,946 959,331
Noncurrent liabilities:

Compensated absences, due in more than one year 103,515 48,051 151,566 Net other post employment benefit liability 914,777 304,925 1,219,702 Net pension liability 4,538,649 1,512,883 6,051,532
Total noncurrent liabilities 5,556,941 1,865,859 7,422,800 Total liabilities 6,205,326 2,176,805 8,382,131

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 287,082 95,694 382,776
Deferred inflows - OPEB 271,224 90,408 361,632
Deferred inflows - leases - 150,160 150,160
Total deferred inflows of resources 558,306 336,262 894,568

NET POSITION
Net investment in capital assets 14,172,782 13,341,856 27,514,638 Restricted for:

Highways and streets 872,644 - 872,644
Capital improvements and other 3,592,229 - 3,592,229
Total restricted 4,464,873 - 4,464,873
Unrestricted 19,792,904 12,010,364 31,803,268
Total net position $ 38,430,559 $ 25,352,220 $ 63,782,779 Primary Government
See accompanying Notes to Basic Financial Statements.
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City of Solvang
Statement of Activities
For the year ended June 30, 2024
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total City Government:

Governmental activities:

General government $ 2,764,977 $ 735,244 $ 186,159 $ - $ 921,403 Public safety 2,915,471 18,425 - - 18,425
Culture and recreation 1,346,541 162,154 - - 162,154
Community development 941,235 234,171 139,919 - 374,090 Public works 4,037,201 318,905 768,306 167,498 1,254,709 Total governmental activities 12,005,425 1,468,899 1,094,384 167,498 2,730,781 Business-type activities:

Water 5,196,398 5,315,586 12,355 22,263 5,350,204
Wastewater 2,636,207 2,340,151 362,535 - 2,702,686
Transit 1,090,036 52,511 946,466 - 998,977
Total business-type activities 8,922,641 7,708,248 1,321,356 22,263 9,051,867 Total primary government $ 20,928,066 $ 9,177,147 $ 2,415,740 $ 189,761 $ 11,782,648 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.
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Governmental Business-Type
Activities Activities Total
$ (1,843,574) $ - $ (1,843,574)
(2,897,046) - (2,897,046)
(1,184,387) - (1,184,387)
(567,145) - (567,145)
(2,782,492) - (2,782,492)
(9,274,644) - (9,274,644)
- 153,806 153,806
- 66,479 66,479
- (91,059) (91,059)
- 129,226 129,226
(9,274,644) 129,226 (9,145,418)
1,821,765 - 1,821,765
4,405,802 - 4,405,802
6,816,288 - 6,816,288
339,297 - 339,297
13,383,152 - 13,383,152
1,144,489 517,693 1,662,182
37,611 - 37,611
(133,000) 133,000 -
14,432,252 650,693 15,082,945
5,157,608 779,919 5,937,527
33,272,951 24,572,301 57,845,252
$ 38,430,559 $ 25,352,220 $ 63,782,779
Primary Government
and Changes in Net Position
Net (Expense) Revenue
See accompanying Notes to Basic Financial Statements.
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38 193
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
39 194
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40 195

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. 41 196
City of Solvang
Balance Sheet
Governmental Funds
June 30, 2024
Non-Major Total
Major Fund Governmental Governmental
General Fund Funds Funds
ASSETS
Cash and investments $ 21,329,920 $ 4,223,778 $ 25,553,698 Receivables:

Taxes receivable 8,949 - 8,949
Accounts receivable 1,787,844 182,940 1,970,784
Due from other government 76,502 - 76,502
Interest receivable 72,002 34,697 106,699
Prepaid items 56,257 - 56,257
Loans and notes receivables - 17,838 17,838
Total assets $ 23,331,474 $ 4,459,253 $ 27,790,727

LIABILITIES AND

FUND BALANCES
Liabilities:

Accounts payable $ 465,529 $ 34,705 $ 500,234
Deposits payable 90,210 - 90,210
Unearned revenues 27,941 - 27,941
Total liabilities 583,680 34,705 618,385
Fund Balances:

Nonspendable (Prepaid items) 56,257 - 56,257
Restricted for:

Recycling 16,947 - 16,947
Highways and streets - 3,646,443 3,646,443
Park improvements - 47,359 47,359
Drainage - 294,460 294,460
Affordable housing - 450,296 450,296
Tennis facilities 9,368 - 9,368
Total restricted 26,315 4,438,558 4,464,873
Committed to:

Emergencies 6,627,743 - 6,627,743
Total committed 6,627,743 - 6,627,743
Assigned to:

Encumbrances 272,486 - 272,486
Unassigned 15,764,993 (14,010) 15,750,983
Total fund balances 22,747,794 4,424,548 27,172,342
Total liabilities and fund balances $ 23,331,474 $ 4,459,253 $ 27,790,727 See accompanying Notes to Basic Financial Statements.
42 197
Total Fund Balances - Total Governmental Funds $ 27,172,342 Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds 13,878,532
The assets and liabilities of the internal service fund are included in the governmental activities in the statement of net position 1,536,687
Pension actuarial deferrals and certain employer contributions are reported as deferred inflows and outflows of resources and are, therefore, not reported in the funds 1,424,730 Net pension liability (NPL) obligations are not due and payable in the current period and are not reported in the funds (4,538,649)
OPEB actuarial deferrals and certain employer contributions are reported as deferred inflows and outflows of resources and are, therefore, not reported in the funds 5,209 The net OPEB liability is not due and payable in the current period and is therefore not reported in the funds (914,777)
Some liabilities, including compensated absences, and claims are not due and payable in the current period and are therefore not reported in the funds (133,515)

Net Position of Governmental Activities $ 38,430,559
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, 2024
See accompanying Notes to Basic Financial Statements.
43 198
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44 199
Statement of Revenues, Expenditures and Changes in Fund Balances Impact Fee City Projects Non-Major Total
Special Capital Governmental Governmental
General Fund Revenue Fund Projects Fund Funds Funds
REVENUES:

Property taxes $ 1,821,765 $ - $ - $ - $ 1,821,765
Sales taxes 4,405,802 - - - 4,405,802
Transient occupancy taxes 6,816,288 - - - 6,816,288
Other taxes 339,297 - - - 339,297
Special assessments - - - 229,977 229,977
Licenses and permits 200,681 - - - 200,681
Fines and forfeits - - - 6,453 6,453
Intergovernmental 365,032 - - 896,850 1,261,882
Interest 883,532 - - 196,958 1,080,490
Charges for services 1,012,282 - - 19,506 1,031,788
Miscellaneous 37,612 - - - 37,612
Total revenues 15,882,291 - - 1,349,744 17,232,035
EXPENDITURES:

Current:

General government 2,535,335 - - - 2,535,335
Public safety 2,909,221 - - - 2,909,221
Culture and recreation 1,214,392 - - - 1,214,392
Community development 940,107 - - - 940,107
Public works 3,161,656 - - 171,470 3,333,126
Capital outlay 36,264 - - 186,494 222,758
Total expenditures 10,796,975 - - 357,964 11,154,939
REVENUES OVER (UNDER) EXPENDITURES 5,085,316 - - 991,780 6,077,096 OTHER FINANCING SOURCES (USES):

Transfers in 188,171 - - 190,817 378,988
Transfers out (171,557) - - (210,431) (381,988)
Total other financing sources (uses) 16,614 - - (19,614) (3,000) Net change in fund balances 5,101,930 - - 972,166 6,074,096 FUND BALANCES:

Beginning of year, as previously stated 17,645,864 1,565,428 (18,333) 1,905,287 21,098,246 Restatement - change in major funds - (1,565,428) 18,333 1,547,095 - Beginning of year, as restated 17,645,864 - - 3,452,382 21,098,246 End of year $ 22,747,794 $ - $ - $ 4,424,548 $ 27,172,342 City of Solvang
Governmental Funds
For the year ended June 30, 2024
Major Funds
See accompanying Notes to Basic Financial Statements.
45 200
Net Change in Fund Balances - Total Governmental Funds $ 6,074,096 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 depreciation exceeds capital outlays in the current period. (811,746) 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. 114,006
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. (260,888)
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 (52,404) 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 94,544

Change in Net Position of Governmental Activities $ 5,157,608 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, 2024
See accompanying Notes to Basic Financial Statements.
46 201

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. 47 202
City of Solvang
Statement of Net Position
Proprietary Funds
June 30, 2024
Water Wastewater
ASSETS
Current assets:

Cash and investments $ 5,517,357 $ 2,638,244
Accounts receivable 684,085 288,148
Interest receivable 24,283 12,289
Lease receivable 10,928 -
Deposits 632,937 836
Prepayments 2,134,469 6,098
Total current assets 9,004,059 2,945,615
Noncurrent assets:

Lease receivable 163,158 -
Capital assets:

Capital assets not being depreciated 313,065 591,870
Capital assets being depreciated 5,649,660 6,136,544
Total capital assets 5,962,725 6,728,414
Total noncurrent assets 6,125,883 6,728,414
Total assets 15,129,942 9,674,029

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 228,242 342,362
Deferred outflows - OPEB 36,858 55,287
Total deferred outflows of resources 265,100 397,649

LIABILITIES
Current liabilities:

Accounts payable and other 145,480 115,327
Compensated absences - due within one year 15,000 15,000 Total current liabilities 160,480 130,327
Noncurrent liabilities:

Compensated absences - due in more than one year 16,288 31,763 Net other postemployment benefit liability 121,970 182,955 Net pension liability 605,153 907,730
Total noncurrent liabilities 743,411 1,122,448
Total liabilities 903,891 1,252,775

DEFERRED INFLOWS OF RESOURCES
Deferred inflows - pension 38,277 57,417
Deferred inflows - OPEB 36,163 54,245
Deferred inflows - leases 150,160 -
Total deferred inflows of resources 224,600 111,662

NET POSITION
Net investment in capital assets 5,962,725 6,728,414
Unrestricted 8,303,826 1,978,827
Total net position $ 14,266,551 $ 8,707,241
Enterprise Funds
See accompanying Notes to Basic Financial Statements.
48 203
Vehicle/Equipment
Replacement
Internal Service
Transit Total Fund
$ 1,383,306 $ 9,538,907 $ 1,237,087
352,630 1,324,863 -
5,920 42,492 5,350
- 10,928 -
3,197 636,970 -
2,797 2,143,364 -
1,747,850 13,697,524 1,242,437
- 163,158 -
- 904,935 -
650,717 12,436,921 294,250
650,717 13,341,856 294,250
650,717 13,505,014 294,250
2,398,567 27,202,538 1,536,687
- 570,604 -
- 92,145 -
- 662,749 -
20,139 280,946 -
- 30,000 -
20,139 310,946 -
- 48,051 -
- 304,925 -
- 1,512,883 -
- 1,865,859 -
20,139 2,176,805 -
- 95,694 -
- 90,408 -
- 150,160 -
- 336,262 -
650,717 13,341,856 294,250
1,727,711 12,010,364 1,242,437
$ 2,378,428 $ 25,352,220 $ 1,536,687
Enterprise Funds
See accompanying Notes to Basic Financial Statements.
49 204
City of Solvang
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2024
Water Wastewater
OPERATING REVENUES:

Sales of water $ 5,284,155 $ -
Service fees - 2,325,283
Miscellaneous 31,431 14,868
Total operating revenues 5,315,586 2,340,151
OPERATING EXPENSES:

Salaries and benefits 781,407 961,021
Purchased power 135,497 259,028
Transit operator - -
Services and supplies 1,870,866 939,873
Joint operating expenses 2,035,157 -
Depreciation expense 373,471 476,285
Total operating expenses 5,196,398 2,636,207
OPERATING INCOME (LOSS) 119,188 (296,056)
NONOPERATING REVENUES (EXPENSES):

Grant revenue 12,355 362,535
Operating subsidies - -
Gain on sale of capital assets - -
Interest and investment revenue 328,910 124,037
Total nonoperating revenues (expenses) 341,265 486,572

INCOME (LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 460,453 190,516
Transfers in - 130,000
Transfers out - -
Capital contributions 22,263 -
Net contributions and transfers 22,263 130,000
Change in net position 482,716 320,516
NET POSITION:

Beginning of year 13,783,835 8,386,725
End of year $ 14,266,551 $ 8,707,241
Enterprise Funds
See accompanying Notes to Basic Financial Statements.
50 205
Vehicle/Equipment
Replacement
Internal Service
Transit Total Fund
$ - $ 5,284,155 $ -
52,511 2,377,794 217,347
- 46,299 -
52,511 7,708,248 217,347
- 1,742,428 -
2,893 397,418 -
682,874 682,874 -
316,785 3,127,524 -
- 2,035,157 -
87,484 937,240 56,801
1,090,036 8,922,641 56,801
(1,037,525) (1,214,393) 160,546
- 374,890 -
946,466 946,466 -
- - -
64,746 517,693 63,998
1,011,212 1,839,049 63,998
(26,313) 624,656 224,544
3,000 133,000 -
- - (130,000)
- 22,263 -
3,000 155,263 (130,000)
(23,313) 779,919 94,544
2,401,741 24,572,301 1,442,143
$ 2,378,428 $ 25,352,220 $ 1,536,687
Enterprise Funds
See accompanying Notes to Basic Financial Statements.
51 206
City of Solvang
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
Water Wastewater
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $ 5,224,257 $ 2,290,278
Payments to suppliers (4,311,916) (1,119,366)
Payments from other funds for services - -
Payments for employees and benefits (753,845) (931,078) Net cash provided by (used in) operating activities 158,496 239,834 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Transfers in - 130,000
Transfers out - -
Grants and operating subsidies 12,355 362,535
Net cash provided by (used in) noncapital financing activities 12,355 492,535 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Proceeds from sale of capital assets - -
Capital contributions 22,263 -
Purchases of capital assets (372,895) (337,503)
Net cash provided by (used in) capital and related financing activities (350,632) (337,503) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income 343,564 128,087
Net cash provided by (used in) investing activities 343,564 128,087 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 163,783 522,953 CASH AND INVESTMENTS - Beginning of year 5,353,574 2,115,291 CASH AND INVESTMENTS - End of year $ 5,517,357 $ 2,638,244

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

Operating income (loss) $ 119,188 $ (296,056)
Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 373,471 476,285
Changes in assets and liabilities:

Decrease (increase) in receivables and related amounts (91,329) (49,873) Decrease (increase) in deposits (836) -
Decrease (increase) in prepayments (98,756) (295)
Increase (decrease) in accounts payable (170,804) 79,830 Increase (decrease) in compensated absences 7,981 564
Increase (decrease) in net OPEB liability and related deferred amounts (15,202) (22,800) Increase (decrease) in net pension liability and related deferred amounts 34,783 52,179 Total adjustments 39,308 535,890
Net cash provided by operating activities $ 158,496 $ 239,834 Enterprise Funds
See accompanying Notes to Basic Financial Statements.
52 207
Vehicle/Equipment
Replacement
Internal Service
Transit Total Fund
$ 52,511 $ 7,567,046 $ -
(1,046,933) (6,478,215) -
- - 217,347
- (1,684,923) -
(994,422) (596,092) 217,347
3,000 133,000 -
- - (130,000)
1,086,545 1,461,435 -
1,089,545 1,594,435 (130,000)
- - -
- 22,263 -
- (710,398) (139,326)
- (688,135) (139,326)
67,792 539,443 68,144
67,792 539,443 68,144
162,915 849,651 16,165
1,220,391 8,689,256 1,220,922
$ 1,383,306 $ 9,538,907 $ 1,237,087
$ (1,037,525) $ (1,214,393) $ 160,546
87,484 937,240 56,801
- (141,202) -
- (836) -
(2,797) (101,848) -
(41,584) (132,558) -
- 8,545 -
- (38,002) -
- 86,962 -
43,103 618,301 56,801
$ (994,422) $ (596,092) $ 217,347
Enterprise Funds
See accompanying Notes to Basic Financial Statements.
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54 209

FIDUCIARY FUND FINANCIAL STATEMENTS
Custodial Fund accounts for monies collected and held for the Santa Ynez Business Improvement District. 55 210
City of Solvang
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Custodial
Fund
ASSETS
Cash and investments $ 37,259
Assessments receivable 68,502
Total assets 105,761

NET POSITION
Restricted for tourism 105,761
Total net position $ 105,761
See accompanying Notes to Basic Financial Statements.
56 211
City of Solvang
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2024
Custodial
Fund
ADDITIONS:

Special assessments $ 583,926
Total additions 583,926
DEDUCTIONS:

Pass-through payments 576,750
Total Deductions 576,750
Change in net position 7,176
NET POSITION:

Beginning of year 98,585
End of year $ 105,761
See accompanying Notes to Basic Financial Statements.
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58 213

NOTES TO BASIC

FINANCIAL STATEMENTS
59 214
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60 215
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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 balance, 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.
61 216
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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.
62 217
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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 fund as a major governmental fund 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.

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.
63 218
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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. 64 219
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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. 65 220
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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. 66 221
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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
67 222
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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.
68 223
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

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 2024, the City adopted the new accounting standards to conform to the following Governmental Accounting Standards Board Statements:

GASB Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 – The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. 69 224
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS
A. Summary of Cash and Investments
Deposits and investments at June 30, 2024 consisted of the following:

B. Deposits
At June 30, 2024, the carrying amount of the City’s cash and cash equivalents were comprised of the general checking account which had a book balance of $3,956,765 and petty cash of $550. The bank balance in the City’s general checking was $4,016,327 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.

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments $ 26,790,785 $ 9,538,907 $ 37,259 $ 36,366,951 Total cash and investments $ 26,790,785 $ 9,538,907 $ 37,259 $ 36,366,951 Government-Wide
Statement of Net Position
City Treasury:

Deposits:

Cash on hand $ 550
Deposits with financial institution 3,956,765
Total cash on hand and deposits 3,957,315
Investments:

Money market 19,069,787
Local Agency Investment Fund (LAIF) 13,339,849
Total investments 32,409,636
Total cash and investments $ 36,366,951
70 225
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, CONTINUED
B. Deposits, Continued
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.

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, 2024, 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, 2024, the City had $13,339,849 invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.78% in the previous year. The LAIF fair value factor of 0.996316042 was used to calculate the fair value of the investments in LAIF.
71 226
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

2. CASH AND INVESTMENTS, CONTINUED
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.

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 investments in the State Investment Pool and money market account are 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 creditrisk.

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:

Money market $ 19,069,787 $ 19,069,787 $ -
Local Agency Investment Fund 13,339,849 13,339,849 -
Total $ 32,409,636 $ 32,409,636 $ -
Investment Maturities (in years)
72 227
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

3. INTERFUND TRANSACTIONS
The composition of interfund transfers for the year ended June 30, 2024 is as follows:

Transfers to non-major governmental funds were to fund various street and other capital project expenditures. Remaining transfers were to fund on-going street, sewer, and transportation activities.

4. 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, 2024, the City recognized $16,341 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, 2024 was $174,086, and related deferred inflow of resources as of June 30, 2024 was $150,160.

Non-Major Water Transit
General Governmental Enterprise Enterprise Total
Transfers out: Fund Funds Fund Fund Transfers
General Fund $ - $ 171,557 $ - $ 171,557
Non-Major Governmental Funds 188,171 19,260 - 3,000 210,431 Internal Service Fund - - 130,000 - 130,000
Totals $ 188,171 $ 190,817 $ 130,000 $ 3,000 $ 511,988
Transfers in
73 228
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

4. LEASES RECEIVABLES, CONTINUED
Future minimum rental payments are as follows:

5. CAPITAL ASSETS
Capital asset activity relating to governmental activities for the year ended June 30, 2024 was as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 10,928 $ 12,269 $ 23,197
2026 12,466 11,426 23,892
2027 14,142 10,468 24,610
2028 15,965 9,383 25,348
2029 17,948 8,161 26,109
2030-2034 102,637 17,306 119,943
Total $ 174,086 $ 69,013 $ 243,099
Current $ 10,928 $ 12,269 $ 23,197
Noncurrent 163,158 56,744 219,902
Total $ 174,086 $ 69,013 $ 243,099
Beginning Decreases/ Ending
Governmental activities: Balance Increases Reclassification Balance Capital assets, not being depreciated
Land $ 2,721,866 $ - $ - $ 2,721,866
Construction in progress 42,648 61,674 104,322
Total capital assets, not being depreciated 2,764,514 61,674 - 2,826,188 Capital assets, being depreciated:

Buildings 4,008,105 7,790 4,015,895
Machinery and equipment 1,020,602 7,529 1,028,131
Internal service fund – vehicles/equipment 989,713 139,326 1,129,039 Improvements 6,891,175 23,540 6,914,715
Infrastructure-street system 13,250,528 85,635 13,336,163 Total capital assets being depreciated 26,160,123 263,820 - 26,423,943 Less accumulated depreciation for:

Buildings (2,097,221) (88,385) (2,185,606)
Machinery and equipment (742,920) (32,811) (775,731)
Internal service fund (777,988) (56,801) (834,789)
Improvements (4,216,419) (194,845) (4,411,264)
Infrastructure-street system (6,188,086) (681,873) (6,869,959) Total accumulated depreciation (14,022,634) (1,054,715) - (15,077,349) Total capital assets, being depreciated, net 12,137,489 (790,895) - 11,346,594 Governmental activities capital assets, net $ 14,902,003 $ (729,221) $ - $ 14,172,782 74 229
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

5. CAPITAL ASSETS, CONTINUED
Capital asset activity relating to business-type activities for the year ended June 30, 2024 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 418,832 294,895 - 713,727
Total capital assets, not being depreciated 610,040 294,895 - 904,935 Capital assets, being depreciated:

Buildings and bus stop facilities 8,362,355 - 8,362,355 Distribution and collection systems 12,214,718 30,248 12,244,966 Infrastructure 10,034,449 136,591 10,171,040
Vehicles 949,617 - 949,617
Equipment 2,155,130 248,664 2,403,794
Total capital assets being depreciated 33,716,269 415,503 - 34,131,772 Less accumulated depreciation for:

Buildings (6,971,471) (158,648) (7,130,119)
Distribution and collection systems (8,861,715) (294,028) (9,155,743) Infrastructure (2,700,389) (353,060) (3,053,449)
Vehicles (767,304) (56,655) (823,959)
Equipment (1,456,732) (74,849) (1,531,581)
Total accumulated depreciation (20,757,611) (937,240) - (21,694,851) Total capital assets, being depreciated, net 12,958,658 (521,737) - 12,436,921 Business-type activities capital assets, net $ 13,568,698 $ (226,842) $ - $ 13,341,856 Governmental activities:

General government $ 61,439
Public safety 6,250
Culture and recreation 121,524
Public works 808,701
Vehicles- internal service fund 56,801
Total depreciation expense-governmental activities $ 1,054,715 Business-type activities:

Water $ 373,471
Wastewater 476,285
Transit 87,484
Total depreciation expense-business-type activities $ 937,240 75 230
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

6. LONG-TERM OBLIGATIONS
Long-term liability activity for the 2024 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.

7. 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 $ 81,112 $ 133,515 $ (81,112) $ 133,515 $ 30,000 $ 103,515 Total $ 81,112 $ 133,515 $ (81,112) $ 133,515 $ 30,000 $ 103,515 Business-type
Activities:

Compensated absences $ 69,506 $ 78,051 $ (69,506) $ 78,051 $ 30,000 $ 48,051 Total $ 69,506 $ 78,051 $ (69,506) $ 78,051 $ 30,000 $ 48,051 76 231
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

8. 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, 2024, the City had the following outstanding encumbrances:

Expense
General
Fund
Non-Major
Gov'l Funds Water Fund
Wastewater
Fund
Grand
Total
Alisal Emergency $ 13,571 $ - $ - $ - $ 13,571
Assistance for FEMA Applications 11,929 - - - 11,929
Cannon Utility Department Assistance - - 18,854 18,854 37,707 Complete Lot 5 EV Parking Lot Design - 8,395 - - 8,395
Facilities Master Plan - 59,417 - - 59,417
Fema Alisal 1,046 - - - 1,046
FY 2022-23 Professional Services 27,000 - - - 27,000
FY 2023-24 Concrete Repairs - 472,215 - - 472,215
General Pln Update Contract 54,876 - - - 54,876
Grant Services 28,286 - - - 28,286
HCA Middle Well - - 371,858 - 371,858
Improvement Studies - - - 149,189 149,189
Islay Events FY 2023-24 14,105 - - - 14,105
Lead Service Line Inventory - - 22,068 - 22,068
Nyborg Waterline Replacement - - 192,902 - 192,902
Recruiting Services - Utility Director 16,492 - - - 16,492 Res 1 Roof - - 15,500 - 15,500
River Wells Project - - 23,935 - 23,935
Sewer Line Replacement Project - - - 47,800 47,800
Stiletto Events 17,043 - - - 17,043
Tom Jones & Associates, Inc. 30,316 - - - 30,316
Urban Planning FY 2023-24 57,823 - - - 57,823
WWTP O&M Manual - Climate Change - - - 67,188 67,188
WWTP Upgrades Grant Writing - - - 105,492 105,492
Grand Total $ 272,486 $ 540,028 $ 645,117 $ 388,522 $1,846,152 77 232
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

9. 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.

10. 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. 78 233
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

10. PENSION PLANS, CONTINUED
B. Benefits Provided
The rate plan provisions and benefits in effect at June 30, 2024 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, 2023 were $544,960. The City’s contributions to the Plan for the fiscal year ended June 30, 2024 recorded as deferred outflows of resources were $564,190.

As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $6,051,532.

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 14.920% 8.000% 0.000% Required unfunded liability payment $ 387,856 $ - $ -
Rate Plan
79 234
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

10. 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, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by actuarial valuations as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportionate share of the net pension liability was based on 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, 2022 and 2023 were as follows:

For the year ended June 30, 2024, the City recognized pension income of $912,041. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$564,190 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, 2025.

Proportion - June 30, 2022 0.048509%
Proportion - June 30, 2023 0.048508%
Change - Increase (Decrease) -0.000001%
Deferred
Outflows
Deferred
Inflows of
of Resources Resources
Differences between expected and actual
experience $ 311,326 $ 47,796
Changes in assumptions 365,162 -
Net difference between projected and actual
earnings on pension plan investments 977,351 -
Changes in proportions 64,387 -
Differences between expected and actual contributions - 334,980 Pension contributions subsequent to the
measurement date 564,190 -
Totals $ 2,282,416 $ 382,776
80 235
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

10. 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, 2022 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 6.90% 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 6.90 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.90 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
2025 $ 342,227
2026 247,139
2027 718,050
2028 28,034
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by entry age and service Investment Rate of Return (1) 6.90%
Mortality Derived by CalPERS membership
data for all funds
(1) Net o f pension plan investment expens es.
81 236
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

10. 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 long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

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

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
Asset Class Allocation Return(a)(b)
Global Equity - Cap-Weighted 30.00% 4.45%
Global Equity - Non-Cap-Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-Backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(a) An expected inflation of 2.3% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study. 1% Current 1%
Decrease Discount Rate Increase

5.90% 6.90% 7.90%
Net Pension Liability $ 9,134,372 $ 6,051,532 $ 3,514,584 82 237
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

10. 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, 2024, the City reported no payable for outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.

11. 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.

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, 2024, the following employees were covered by the benefit terms:

The City’s OPEB Plan is closed to new entrants.

Inactive employees or beneficiaries current receiving benefits 26 Inactive employees entitled to but not yet receiving benefit payments - Active employees 28
54 83 238
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

11. OTHER POST- EMPLOYMENT BENEFITS, CONTINUED
A. Plan Description, Continued
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, 2023 was $232,892 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 2024 was $213,814.

C. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022.

D. Actuarial Assumptions
The total net OPEB liability in the June 30, 2022 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.

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
84 239
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

11. 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% 85 240
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

11. 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 if it 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 6/30/2022 (Measurement Date) $ 2,293,132 $ 976,332 $ 1,316,800 Changes for the year:

Service cost 26,740 - 26,740
Interest 139,224 - 139,224
Differences between expected and actual experience 5,044 - 5,044 Contributions – employer - 232,892 (232,892)
Net investment income - 35,498 (35,498)
Benefit payments (162,892) (162,892) -
Administrative expenses - (284) 284
Net changes 8,116 105,214 (97,098)
Balances at 6/30/2023 (Measurement Date) $ 2,301,248 $ 1,081,546 $ 1,219,702 Increase (Decrease)
1% Decrease Discount Rate 1% Increase

5.25% 6.25% 7.25%
Net OPEB Liability (Asset) $ 956,214 $ 1,219,702 $ 1,540,870 Healthcare
1% decrease Cost Trend 1% increase
to Rate to

3.00% 4.00% 5.00%
Net OPEB Liability (Asset) $ 1,490,327 $ 1,219,702 $ 995,472 86 241
City of Solvang
Notes to the Basic Financial Statements
For the year ended June 30, 2024

11. 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, 2024, the City recognized OPEB expense of $61,805. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
$213,814 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, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as pension expense as follows:

Deferred
Outflows
Deferred
Inflows of
of Resources Resources
OPEB contributions subsequent to the
measurement date $ 213,814 $ -
Differences between expected and actual experience 6,472 335,904 Changes in assumptions 43,086 25,728
Net difference between projected and actual
earnings on OPEB plan investments 105,206 -
Totals $ 368,578 $ 361,632
Fiscal Year
Ended June 30
2025 $ (39,682)
2026 (41,363)
2027 (20,079)
2028 (61,394)
2029 (35,044)
Thereafter (9,306)
87 242
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88 243

REQUIRED SUPPLEMENTARY

INFORMATION
89 244
City of Solvang
Required Supplementary Information
For the year ended June 30, 2024

1. DEFINED BENEFIT PENSION PLAN
A. Schedule of the City's Proportionate Share of the Net Pension Liability - Last 10 Years Fiscal year: 2024 2023 2022 2021
Measurement date: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 Proportion of the net pension liability 0.04851% 0.04851% 0.04800% 0.04316% Proportionate share of the net pension liability $ 6,051,532 $ 5,603,171 $ 2,596,064 $ 4,695,870 Covered payroll $ 2,369,911 $ 1,840,839 $ 1,617,922 $ 2,090,447 Proportionate share of the net pension liability as a
percentage of covered payroll 255.35% 304.38% 160.46% 224.63% Plan's share of fiduciary net position as a percentage
of total pension liability 76.21% 76.68% 88.29% 75.10%
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 discoun rate was decreased to 6.9% in 2023.

The CalPERS mortality assumptions were adjusted in fiscal year 2019. 90 245
2020 2019 2018 2017 2016 2015
6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014

0.04206% 0.04086% 0.04040% 0.03943% 0.03911% 0.03911%
$ 4,310,393 $ 3,937,533 $ 4,006,588 $ 3,411,989 $ 2,684,713 $ 2,684,713 $ 2,588,376 $ 2,271,637 $ 2,247,735 $ 2,212,540 $ 2,413,263 $ 2,413,263 166.53% 173.33% 178.25% 154.21% 111.25% 111.25%

75.26% 75.26% 73.31% 74.06% 78.40% 78.40%
fiscal year 2018. The discount
91 246
City of Solvang
Required Supplementary Information
For the year ended June 30, 2024

1. DEFINED BENEFIT PENSION PLAN, CONTINUED
B. Schedule of Employer Pension Contributions - Last 10 Years Fiscal year 2024 2023 2022 2021
Contractually required contribution (actuarially
determined) $ 564,190 $ 544,960 $ 471,400 $ 400,915
Contribution in relation to the actuarially
determined contributions (564,190) (544,960) (471,400) (400,915) Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 2,569,159 $ 2,369,911 $ 1,840,839 $ 1,617,922 Contributions as a percentage of covered payroll 21.96% 22.99% 25.61% 24.78% Note to Schedule
Methods and assumptions used to determine contribution rates:

Valuation date: 6/30/2021 6/30/2020 6/30/2019 6/30/2018 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% 2.63%
Salary increases: (2) (2) (2) (2)
Investment rate of return: 7.00% 7.00% 7.00% 7.00%
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
rates resulting from the most recent CalPERS
92 247
2020 2019 2018 2017 2016 2015
$ 369,421 $ 339,043 $ 279,932 $ 267,856 $ 275,424 $ 390,955 (369,421) (339,043) (279,932) (267,856) (275,424) (390,955) $ - $ - $ - $ - $ - $ -
$ 2,090,447 $ 2,588,376 $ 2,271,637 $ 2,247,735 $ 2,212,540 $ 2,413,263

17.67% 13.10% 12.32% 11.92% 12.45% 16.20%
6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age (1) (1) (1) (1) (1) (1)
Market Value Market Value Market Value Market Value Market Value 15 Year Smoothed
Market

2.63% 2.75% 2.75% 2.75% 2.75% 2.75%
(2) (2) (2) (2) (2) (2)

7.25% 7.375% 7.50% 7.50% 7.50% 7.50%
(3) (3) (3) (3) (3) (3)
(4) (4) (4) (4) (4) (4)
93 248
City of Solvang
Required Supplementary Information
For the year ended June 30, 2024

2. OTHER POSTEMPLOYMENT BENEFITS
A. Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* Fiscal Year 2024 2023 2022
Measurement Period 2023 2022 2021
Total OPEB Liability
Service Cost $ 26,740 $ 27,601 $ 25,300
Interest on the total OPEB liability 139,224 148,855 151,678 Differences between expected and actual experience 5,044 (173,598) - Changes of assumptions - - 67,026
Benefit payments (162,892) (150,797) (144,130)
Net change in total OPEB liability 8,116 (147,939) 99,874 Total OPEB liability - beginning 2,293,132 2,441,071 2,341,197 Total OPEB liability - ending (a) $ 2,301,248 $ 2,293,132 $ 2,441,071 Plan Fiduciary Net Position
Contributions - employer $ 232,892 $ 220,385 $ 214,130
Net investment income 35,498 (138,627) 161,140
Benefit payments (162,892) (150,797) (144,130)
Administrative expense (284) (271) (299)
Net change in plan fiduciary net position 105,214 (69,310) 230,841 Plan fiduciary net position - beginning 976,332 1,045,642 814,801 Plan fiduciary net position - ending (b) $ 1,081,546 $ 976,332 $ 1,045,642 Net OPEB liability/(asset) - ending (a) - (b) $ 1,219,702 $ 1,316,800 $ 1,395,429 Plan fiduciary net position as a
percentage of the total OPEB liability 47.00% 42.58% 42.84% Covered-employee payroll $ 2,369,911 $ 1,885,073 $ 1,773,026 Net OPEB liability as a percentage of
covered-employee payroll 51.47% 69.85% 78.70%
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. 94 249
2021 2020 2019 2018
2020 2019 2018 2017
$ 17,469 $ 17,001 $ 16,546 $ 14,390
174,097 169,714 164,529 275,096
(397,078) - - -
(49,124) - - -
(134,647) (117,453) (86,041) (121,194)
(389,283) 69,262 95,034 168,292
2,730,480 2,661,218 2,566,184 2,397,892
$ 2,341,197 $ 2,730,480 $ 2,661,218 $ 2,566,184
$ 204,647 $ 187,453 $ 159,080 $ 174,832
39,698 48,299 30,282 27,989
(134,647) (117,453) (86,041) -
(633) (545) (446) (121,194)
109,065 117,754 102,875 81,627
705,736 587,982 485,107 403,480
$ 814,801 $ 705,736 $ 587,982 $ 485,107
$ 1,526,396 $ 2,024,744 $ 2,073,236 $ 2,081,077

34.80% 25.85% 22.09% 18.90%
$ 2,412,314 $ 2,639,268 $ 2,275,881 $ 2,539,234

63.28% 76.72% 91.10% 81.96%
95 250
City of Solvang
Required Supplementary Information
For the year ended June 30, 2024

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. 96 251
City of Solvang
Required Supplementary Information
For the year ended June 30, 2024

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 $ 17,645,864 $ 17,645,864 $ 17,645,864 $ - Resources (inflows):

Property taxes 1,474,254 1,474,254 1,821,765 347,511
Sales taxes 3,221,200 4,021,200 4,405,802 384,602
Transient occupancy taxes 4,900,000 4,900,000 6,816,288 1,916,288 Other taxes 255,000 255,000 339,297 84,297
Licenses and permits 140,000 140,000 200,681 60,681
Fines and forfeits 4,000 4,000 - (4,000)
Intergovernmental 256,355 276,879 365,032 88,153
Interest 45,000 335,000 883,532 548,532
Charges for services 960,121 978,121 1,012,282 34,161
Miscellaneous 13,200 13,200 37,612 24,412
Transfers in 191,172 191,172 188,171 (3,001)
Amounts available for charges to appropriations 29,106,166 30,234,690 33,716,326 3,481,636 Charges to appropriations:

General Government:

Nondepartmental:

City council 37,200 37,200 37,200 -
Other 90,328 160,328 92,790 67,538
OPEB 169,520 169,520 173,442 (3,922)
Community support 652,296 652,296 492,996 159,300
Administration:

Legal 130,000 216,000 266,400 (50,400)
General administration 1,605,314 1,768,647 1,472,507 296,140 Transfers out 1,239,297 1,239,297 171,557 1,067,740
Public Safety:

Sheriff contract 3,000,000 3,000,000 2,856,936 143,064
Animal control 49,652 49,652 49,652 -
Mental health & 211 program 3,000 3,000 2,633 367
Culture and Recreation:

Tourism 786,413 889,361 760,906 128,455
Parks and recreation 451,477 474,498 268,631 205,867
Library 192,250 192,250 184,855 7,395
Community Development:

City planning, building, development 843,233 1,164,191 940,107 224,084 Public works:

Public works, streets, engineering 2,803,452 3,739,247 3,197,920 541,327 Total charges to appropriations 12,053,432 13,755,487 10,968,532 2,786,955 Fund Balance, June 30 $ 17,052,734 $ 16,479,203 $ 22,747,794 $ 6,268,591 Budget Amounts
97 252
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98 253

SUPPLEMENTARY INFORMATION
99 254
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100 255
Impact Fee Fund accounts for impact fees paid by developers restricted for various capital improvement projects.

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.

City Capital Projects Fund accounts for monies committed and restricted for City capital projects.

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

CAPITAL PROJECTS FUNDS
101 256
City of Solvang
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Traffic Local
Impact Fee Safety Gas Tax Transportation
ASSETS
Cash and investments $ 1,620,928 $ 4,260 $ 195,123 $ 495,757 Receivables:

Accounts receivable 18,425 745 39,960 1,616
Interest receivable 7,568 39 1,308 2,204
Loans Receivables 17,838 - - -
Total assets $ 1,664,759 $ 5,044 $ 236,391 $ 499,577

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ - $ -
Total liabilities - - - -
Fund Balances:

Restricted for highways and streets 872,644 5,044 236,391 499,577 Restricted for park improvements 47,359 - - -
Restricted for drainage 294,460 - - -
Restricted for affordable housing 450,296 - - -
Unassigned - - - -
Total fund balances 1,664,759 5,044 236,391 499,577
Total liabilities and
fund balances $ 1,664,759 $ 5,044 $ 236,391 $ 499,577
Special Revenue Funds
102 257
Skytt Mesa City Projects
Landscape Capital
Measure A and Lighting Projects Fund Totals
$ 1,394,962 $ 512,748 $ - $ 4,223,778
122,194 - - 182,940
8,086 2,179 13,313 34,697
- - - 17,838
$ 1,525,242 $ 514,927 $ 13,313 4,459,253
$ - $ 7,382 $ 27,323 34,705
- 7,382 27,323 34,705
1,525,242 507,545 - 3,646,443
- - - 47,359
- - - 294,460
- - - 450,296
- - (14,010) (14,010)
1,525,242 507,545 (14,010) 4,424,548
$ 1,525,242 $ 514,927 $ 13,313 $ 4,459,253
Special Revenue Funds
103 258
City of Solvang
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2024
Traffic Local
Impact Fee Safety Gas Tax Transportation
REVENUES:

Special assessments $ - $ - $ - $ -
Fines and forfeitures - 6,453 - -
Intergovernmental - - 322,256 84,392
Interest 79,825 274 6,961 23,282
Charges for services 19,506 - - -
Total revenues 99,331 6,727 329,217 107,674
EXPENDITURES:

Current:

Highways and streets - - - -
Capital outlay - - - -
Total expenditures - - - -

REVENUES OVER
(UNDER) EXPENDITURES 99,331 6,727 329,217 107,674
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - (5,050) (118,122) (35,000)
Total other financing
sources (uses) - (5,050) (118,122) (35,000)
Net change in fund balances 99,331 1,677 211,095 72,674 FUND BALANCES:

Beginning of the year, as previously stated - 3,367 25,296 426,903 Restatements 1,565,428 - - -
Beginning of the year, as restated 1,565,428 3,367 25,296 426,903 End of year $ 1,664,759 $ 5,044 $ 236,391 $ 499,577
Special Revenue Funds
104 259
Skytt Mesa City Projects
Landscape Capital
Measure A and Lighting Projects Fund Totals
$ - $ 229,977 $ - $ 229,977
- - - 6,453
490,202 - - 896,850
63,150 23,466 - 196,958
- - - 19,506
553,352 253,443 - 1,349,744
- 171,470 - 171,470
- - 186,494 186,494
- 171,470 186,494 357,964
553,352 81,973 (186,494) 991,780
- - 190,817 190,817
(52,259) - - (210,431)
(52,259) - 190,817 (19,614)
501,093 81,973 4,323 872,835
1,024,149 425,572 - 1,905,287
- - (18,333) 1,547,095
1,024,149 425,572 (18,333) 3,452,382
$ 1,525,242 $ 507,545 $ (14,010) $ 4,325,217
Special Revenue Funds
105 260
City of Solvang
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Impact Fee Special Revenue Fund
For the year ended June 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest $ 18,424 $ 18,424 $ 79,825 $ 61,401
Charges for services 19,671 19,671 19,506 (165)
Total revenues 38,095 38,095 99,331 61,236
EXPENDITURES:

Capital outlay 10,000 10,000 - 10,000
Total expenditures 10,000 10,000 - 10,000
Net change in fund balances $ 28,095 $ 28,095 99,331 $ 71,236 FUND BALANCES:

Beginning of the year 1,565,428
End of year $ 1,664,759
Budget Amounts
106 261
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest $ 50 $ 50 $ 274 $ 224
Charges for services - - - -
Total revenues 5,050 5,050 6,727 1,677
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 $ - $ - 1,677 $ 1,677
FUND BALANCES:

Beginning of the year 3,367
End of year $ 5,044
Budget Amounts
107 262
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 311,820 $ 311,820 $ 322,256 $ 10,436 Interest 1,450 1,450 6,961 5,511
Total revenues 313,270 313,270 329,217 15,947
OTHER FINANCING SOURCES (USES):

Transfers out (268,122) (268,122) (118,122) 150,000
Total other financing sources (uses) (268,122) (268,122) (118,122) 150,000 Net change in fund balances $ 45,148 $ 45,148 211,095 $ 165,947 FUND BALANCES:

Beginning of the year 25,296
End of year $ 236,391
Budget Amounts
108 263
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 84,203 $ 84,203 $ 84,392 $ 189
Interest 522 522 23,282 22,760
Total revenues 84,725 84,725 107,674 22,949
OTHER FINANCING SOURCES (USES):

Transfers out (285,000) (285,000) (35,000) 250,000
Total other financing sources (uses) (285,000) (285,000) (35,000) 250,000 Net change in fund balances $ (200,275) $ (200,275) 72,674 $ 272,949 FUND BALANCES:

Beginning of the year 426,903
End of year $ 499,577
Budget Amounts
109 264
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental $ 509,581 $ 509,581 $ 490,202 $ (19,379) Interest 6,000 6,000 63,150 57,150
Total revenues 515,581 515,581 553,352 37,771
OTHER FINANCING SOURCES (USES):

Transfers out (626,000) (626,000) (52,259) 573,741
Total other financing sources (uses) (626,000) (626,000) (52,259) 573,741 Net change in fund balances $ (110,419) $ (110,419) 501,093 $ 611,512 FUND BALANCES:

Beginning of the year 1,024,149
End of year $ 1,525,242
Budget Amounts
110 265
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Special assessments $ 219,024 $ 219,024 $ 229,977 $ 10,953 Interest 1,500 1,500 23,466 21,966
Total revenues 220,524 220,524 253,443 32,919
EXPENDITURES:

Current:

Public works
Highways and streets 212,716 212,716 171,470 41,246
Capital outlay 13,000 13,000 - 13,000
Total expenditures 225,716 225,716 171,470 54,246
Net change in fund balances $ (5,192) $ (5,192) 81,973 $ 87,165 FUND BALANCES:

Beginning of the year 425,572
End of year $ 507,545
Budget Amounts
111 266
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Interest $ 1,100 $ 1,100 $ - $ (1,100)
Total revenues 1,100 1,100 - (1,100)
EXPENDITURES:

Capital outlay 2,158,000 2,184,865 186,494 1,998,371
Total expenditures 2,158,000 2,184,865 186,494 1,998,371

REVENUES OVER
(UNDER) EXPENDITURES (2,156,900) (2,183,765) (186,494) 1,997,271 OTHER FINANCING SOURCES (USES):

Transfers in 2,158,000 2,158,000 190,817 (1,967,183)
Total other financing sources (uses) 2,158,000 2,158,000 190,817 (1,967,183) Net change in fund balances $ 1,100 $ (25,765) 4,323 $ 30,088 FUND BALANCES:

Beginning of the year (18,333)
End of year $ (14,010)
Budget Amounts
112 267

STATISTICAL SECTION
This part of the Government’s annual comprehensive 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.
113 268
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114 269
2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities:

Net investment in capital assets $ 11,748,077 $ 11,584,893 $ 12,128,629 $ 12,360,410 $ 12,565,957 $ 12,696,479 $ 12,740,666 $ 13,988,390 $ 14,902,003 Restricted $ 3,011,325 $ 3,121,123 $ 3,597,517 $ 3,213,182 $ 3,443,607 $ 3,435,769 $ 3,545,533 $ 3,390,500 $ 3,498,573 Unrestricted $ 7,488,153 $ 8,798,516 $ 7,485,859 $ 9,010,003 $ 9,093,838 $ 7,687,783 $ 8,279,527 $ 11,206,764 $ 14,872,375 Total governmental activities net position $ 22,247,555 $ 23,504,532 $ 23,212,005 $ 24,583,595 $ 25,103,402 $ 23,820,031 $ 24,565,726 $ 28,585,654 $ 33,272,951 Business-type activities:

Net investment in capital assets $ 10,409,946 $ 10,943,614 $ 10,879,295 $ 10,462,415 $ 12,053,677 $ 11,521,718 $ 11,555,587 $ 12,865,006 $ 13,568,698 Restricted $ - $ - $ - $ - $ - $ - $ - $ - $ -
Unrestricted $ 6,794,971 $ 10,725,516 $ 11,550,796 $ 12,687,615 $ 11,679,974 $ 11,469,414 $ 11,645,387 $ 10,263,902 $ 11,003,603 Total business-type activities net position $ 17,204,917 $ 21,669,130 $ 22,430,091 $ 23,150,030 $ 23,733,651 $ 22,991,132 $ 23,200,974 $ 23,128,908 $ 24,572,301 Primary government (City wide totals)
Net investment in capital assets $ 22,158,023 $ 22,528,507 $ 23,007,924 $ 22,822,825 $ 24,619,634 $ 24,218,197 $ 24,296,253 $ 26,853,396 $ 28,470,701 Restricted 3,011,325 3,121,123 3,597,517 3,213,182 3,443,607 3,435,769 3,545,533 3,390,500 3,498,573 Unrestricted 14,283,124 19,524,032 19,036,655 21,697,618 20,773,812 19,157,197 19,924,914 21,470,666 25,875,978 Total primary government net position $ 39,452,472 $ 45,173,662 $ 45,642,096 $ 47,733,625 $ 48,837,053 $ 46,811,163 $ 47,766,700 $ 51,714,562 $ 57,845,252 Schedule 1
City of Solvang
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
115 270
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses:

Governmental activities:

General government $ 1,417,776 $ 1,664,564 $ 2,031,468 $ 1,274,194 $ 1,778,600 $ 2,532,206 $ 1,973,026 $ 2,911,369 $ 2,805,808 $ 2,764,977 Public safety 1,647,930 1,637,483 1,675,872 1,737,083 1,820,369 2,039,940 1,861,310 2,189,633 2,373,664 2,915,471 Public works 1,789,458 2,045,387 2,499,428 2,375,931 2,821,441 2,430,740 2,393,971 2,580,297 3,179,379 4,037,201 Community development 876,912 463,965 434,362 559,661 822,307 686,326 704,481 805,316 808,250 941,235 Culture and recreation 1,713,110 1,858,427 1,865,952 2,022,884 2,182,521 2,816,624 1,651,868 1,221,471 1,093,712 1,346,541 Interest on long-term debt - -
Total Governmental Activities 7,445,186 7,669,826 8,507,082 7,969,753 9,425,238 10,505,836 8,584,656 9,708,086 10,260,813 12,005,425 Business-type activities:

Water $ 4,765,816 $ 4,077,790 $ 4,030,207 $ 4,307,206 $ 4,861,159 $ 4,922,788 $ 5,280,019 $ 5,216,176 $ 4,303,277 $ 5,196,398 Wastewater 1,799,891 1,733,416 2,083,850 2,090,605 2,343,221 2,481,979 2,222,770 2,248,410 2,402,724 2,636,207 Transit 708,781 701,114 848,637 856,112 996,657 982,433 1,029,086 1,099,939 1,134,410 1,090,036 Total Business-type Activities 7,274,488 6,512,320 6,962,694 7,253,923 8,201,037 8,387,200 8,531,875 8,564,525 7,840,411 8,922,641 Total Expenses $ 14,719,674 $ 14,182,146 $ 15,469,776 $ 15,223,676 $ 17,626,275 $ 18,893,036 $ 17,116,531 $ 18,272,611 $ 18,101,224 $ 20,928,066 Program Revenues:

Governmental activities:

Charges for services:

General government $ 552,656 $ 497,867 $ 499,324 $ 512,784 $ 555,393 $ 559,178 $ 577,697 $ 605,809 $ 760,807 $ 735,244 Public safety 20,140 14,251 19,039 11,506 76,077 4,888 1,971 35,670 5,190 18,425 Public works 275,691 325,298 430,863 502,886 260,504 250,905 232,180 286,038 319,713 318,905 Community development 416,750 412,305 287,874 168,769 160,043 153,619 260,150 339,214 331,821 234,171 Culture and recreation 135,769 104,343 119,547 120,414 108,954 91,210 44,676 115,306 143,851 162,154 Operating grants and contributions 614,802 530,193 773,860 630,949 680,790 801,390 1,213,507 2,242,909 1,735,759 1,094,384 Capital grants and contributions 40,559 116,767 921,294 198,314 118,731 134,144 129,594 139,958 155,723 167,498 Total Governmental Activities 2,056,367 2,001,024 3,051,801 2,145,622 1,960,492 1,995,334 2,459,775 3,764,904 3,452,864 2,730,781 Business-type Activity:

Charges for services:

Water $ 4,422,992 $ 4,457,268 $ 4,566,227 $ 4,919,648 $ 4,742,528 $ 4,817,512 $ 5,102,750 $ 5,231,784 $ 5,112,107 $ 5,315,586 Wastewater 1,623,447 1,736,952 1,669,291 1,824,725 1,463,857 1,418,281 1,415,118 1,565,759 1,953,239 2,340,151 Transit 65,696 59,869 78,573 61,631 64,702 47,762 37,682 48,775 56,068 52,511 Operating grants and contributions 805,635 813,847 888,618 809,650 1,827,984 1,248,222 1,452,986 1,470,179 1,826,086 1,321,356 Capital grants and contributions 950,429 587,845 214,575 51,708 35,716 4,707 22,978 166,715 43,735 22,263 Total Business-type Activities 7,868,199 7,655,781 7,417,284 7,667,362 8,134,787 7,536,484 8,031,514 8,483,212 8,991,235 9,051,867 Total Program Revenues $ 9,924,566 $ 9,656,805 $ 10,469,085 $ 9,812,984 $ 10,095,279 $ 9,531,818 $ 10,491,289 $ 12,248,116 $ 12,444,099 $ 11,782,648 Schedule 2
City of Solvang
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
116 271
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net (Expense)/Revenue:

Governmental Activities $ (5,388,819) $ (5,668,802) $ (5,455,281) $ (5,824,131) $ (7,464,746) $ (8,510,502) $ (6,124,881) $ (5,943,182) $ (6,807,949) $ (9,274,644) Business-type Activities 593,711 1,143,461 454,590 413,439 (66,250) (850,716) (500,361) (81,313) 1,150,824 129,226 Total Net Expense $ (4,795,108) $ (4,525,341) $ (5,000,691) $ (5,410,692) $ (7,530,996) $ (9,361,218) $ (6,625,242) $ (6,024,495) $ (5,657,125) $ (9,145,418) General Revenues
Governmental Activities:

Taxes:

Property taxes $ 1,140,579 $ 1,213,316 $ 1,283,266 $ 1,380,568 $ 1,401,623 $ 1,480,839 $ 1,542,764 $ 1,623,747 $ 1,754,910 $ 1,821,765 Transient occupancy taxes 3,833,644 4,195,940 4,330,599 4,320,318 4,618,425 3,440,275 4,078,826 6,031,568 6,311,438 6,816,288 Sales taxes 1,241,436 1,226,777 1,453,808 1,405,281 1,507,745 1,347,670 1,606,443 2,118,762 2,517,643 4,405,802 Other taxes 247,173 248,247 233,572 286,790 232,707 273,226 287,548 288,349 345,486 339,297 Investment earnings 25,323 43,499 48,294 109,264 413,701 364,465 9,490 (145,251) 379,069 1,144,489 Miscellaneous - - 34,436 118,250 45,425 103,903 279,700 37,612 Transfers (1,200) (2,000) (852,390) (306,500) (311,467) 102,992 (697,967) (57,968) (93,000) (133,000) Special Item - - - -
Total general revenues, transfers and
special item 6,486,955 6,925,779 6,497,149 7,195,721 7,897,170 7,127,717 6,872,529 9,963,110 11,495,246 14,432,253 Business-type Activity
Investment earnings $ - $ - $ - $ - $ 258,866 $ 211,189 $ 12,236 $ (48,721) $ 199,569 $ 517,693 Miscellaneous - - - - - - - - - -
Transfers 1,200 2,000 852,390 306,500 311,467 (102,992) 697,967 57,968 93,000 133,000 Total Business-type Activities 1,200 2,000 852,390 306,500 570,333 108,197 710,203 9,247 292,569 650,693 Total primary government $ 6,488,155 $ 6,927,779 $ 7,349,539 $ 7,502,221 $ 8,467,503 $ 7,235,914 $ 7,582,732 $ 9,972,357 $ 11,787,815 $ 15,082,946 Change in net position:

Change in reporting of Component unit $ - $ - $ - $ - $ - $ 99,414 $ - $ - $ - Governmental activities 1,098,136 1,256,977 1,041,868 1,371,590 432,424 (1,283,371) 747,648 4,019,928 4,687,297 5,157,608 Business-type activities 594,911 1,145,461 1,306,980 719,939 504,083 (742,519) 209,842 (72,066) 1,443,393 779,919 Total Changes in Net Position $ 1,693,047 $ 2,402,438 $ 2,348,848 $ 2,091,529 $ 936,507 $ (1,926,476) $ 957,490 $ 3,947,862 $ 6,130,690 $ 5,937,527 Fiscal Year
Schedule 2 (continued)
City of Solvang
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
117 272
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $ 127,805 $ 76,502 $ 82,192 $ 85,451 $ 337,809 $ 229,904 $ 100,412 $ 234,925 $ 17,390 $ 56,257 Restricted 14,290 18,680 12,206 58,837 298,837 26,612 26,315 26,315 26,315 26,315 Committed 3,619,902 4,127,320 4,127,320 4,830,633 4,830,633 4,830,633 4,830,633 4,830,633 7,266,377 6,627,743 Assigned - - - - - 526,726 - - 272,486
Unassigned 4,871,659 5,345,636 5,824,932 5,937,175 5,913,948 5,161,009 6,179,842 9,459,376 10,335,782 15,764,993 Reserved
Unreserved
Total general fund $ 8,633,656 $ 9,568,138 $ 10,046,650 $ 10,912,096 $ 11,381,227 $ 10,248,158 $ 11,663,928 $ 14,551,249 $ 17,645,864 $ 22,747,794 All other governmental funds
Nonspendable $ - $ - $ 275,000.00 $ 275,000.00 $ - $ - $ - $ - $ - Restricted 2,997,035 3,180,161 3,315,997 3,154,345 3,144,770 3,409,157 3,519,218 3,375,286 3,472,258 4,438,558 Committed
Assigned - - -
Unassigned (21,695) (77,681) (23,823) - (19,876) (14,010) Reserved
Unreserved
Special Revenue
Capital Projects
Other Purposes
Total all other governmental funds $ 2,997,035 $ 3,180,161 $ 3,590,997 $ 3,429,345 $ 3,123,075 $ 3,331,476 $ 3,495,395 $ 3,375,286 $ 3,452,382 $ 4,424,548 Note: The provisions of GASB Statement Number 54 were applied prospectively from fiscal year 2011 forward and that years prior to that have not been restated to conform with the GASB 54.

Fiscal Year
Schedule 3
City of Solvang
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
118 273
2015 2016 2017 2018 2019 2020 2021 2022 2023

REVENUES
Taxes $ 6,463 $ 6,885 $ 7,301 $ 7,393 $ 7,761 $ 6,542 $ 7,516 $ 10,062 $ 10,929 Licenses and permits 224 203 184 111 127 126 129 215 278 Fines and forfeits 11 9 9 9 7 4 7 0.48 0.05
Charges for services 982 956 920 962 834 722 765 948 1,039 Special assessments 111 153 203 202 193 207 215 218 219 Intergovernmental 731 619 1,489 618 708 918 1,334 2,383 1,916 Investment earnings 34 57 64 150 374 327 11 (115) 354
Other revenues 6 47 209 203 121 136 54 104 281
Total Revenues $ 8,562 $ 8,929 $ 10,379 $ 9,649 $ 10,124 $ 8,982 $ 10,031 $ 13,816 $ 15,016

EXPENDITURES
General government $ 1,547 $ 1,951 $ 1,669 $ 1,546 $ 1,762 $ 2,467 $ 1,803 $ 3,020 $ 2,864 Public safety 1,644 1,631 1,662 1,734 1,814 2,023 1,855 2,201 2,366 Culture and recreation 1,592 1,695 1,654 1,989 1,952 2,195 1,505 1,096 1,147 Public works 1,837 2,068 3,255 1,941 1,649 1,534 1,475 2,142 2,652 Community development 517 464 434 560 776 622 747 780 830 Housing 394 - - - - - - - -
Capital outlay - - - 869 1,597 1,164 1,059 1,849 2,182
Transportation - - - - - - - - -
Intergovernmental - - - - - - - - -
Debt service: - - - - - - - - -
Costs of issuance - - - - - - - - -
Principal - - - - - - - - -
Interest - - - - - - - - -
Total expenditures $ 7,531 $ 7,809 $ 8,674 $ 8,638 $ 9,550 $ 10,004 $ 8,444 $ 11,088 $ 12,041 Excess (Deficiency) of Revenues over
Expenditures $ 1,031 $ 1,120 $ 1,705 $ 1,010 $ 574 $ (1,022) $ 1,588 $ 2,729 $ 2,975 Other Financing Sources (Uses)
Transfers in $ 161 $ 176 $ 431 $ 175 $ 176 $ 156 $ 920 $ 1,985 $ 2,480 Transfers out (162) (178) (1246) (482) (588) (156) (926) (1946) (2283) Change in reporting of component unit - - - - - 97 - -
Total Other Financing Sources (Uses) $ 161 $ 176 $ 431 $ 175 $ 176 $ 97 $ (6) $ 39 $ 197 Net change in fund balances $ 1,192 $ 1,296 $ 2,136 $ 1,186 $ 750 $ (925) $ 1,582 $ 2,767 $ 3,172 Debt service as a percentage of noncapital
expenditures 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)
119 274
Fiscal Real Personal Total Direct
Year Property Property Totals Tax Rate
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%
2022-2023 1,482,074 43,256 $ 1,525,331 1.00%
2023-2024 1,678,028 47,378 $ 1,725,405 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)
120 275
General
Fiscal Basic Obligation School Special
Year Rate Debt Rate Total Districts Districts
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%
2022-2023 1.00% 0.00% 1.00% 0.06667% 0.04984%
2023-2024 1.00% 0.00% 1.00% 0.06424% 0.04731%
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)
121 276
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 $ 30,977 1 2.03% Santa Ynez Band of Mission Indians $ 29,879 1 1.96% Alisal Guest Ranch 24,424 2 1.60% Worldmark,The Club 20,135 2 1.32% Worldmark,The Club 20,918 3 1.37% Lombard Street, LP 17,546 3 1.15% Lombard Street, LP 18,361 4 1.20% Alisal Guest Ranch 16,549 4 1.08% SYBCI California Hotel No. 2, LLC 15,447 5 1.01% SYBCI California Hotel No. 2, LLC 14,875 5 0.98% Solvang Hotel Group, LP 14,851 6 0.97% Solvang Hotel Group, LP 14,311 6 0.94% FLT Oak Park FLTE LLC 14,647 7 0.96% Petersen Village Inn, LP 9,378 7 0.61% Petersen Village Inn, LP 10,427 8 0.68% Alisal Oaks, LLC 8,251 8 0.54% Sorensen Henning Trust 4/4/78 9,294 9 0.61% Wine Manor Management, LLC 7,139 9 0.47% Radha Damodar Hospitality LLC 8,907 10 0.58% FLT Oak Park FLTE LLC 6,993 10 0.46% Total $ 168,254 11.03% Total $ 145,055 9.51%
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%
Source: Santa Barbara County Assessor's Office
2022
2024 2023
Schedule 7
City of Solvang
Principal Property Tax Payers - Top Ten Payers
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
2021
2018 2017
2016 2015
2020 2019
122 277
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
2014-15 631,868 626,577 99.2% 4,990 631,567 100.0%
2015-16 667,906 661,254 99.0% 5,152 666,406 99.8%
2016-17 708,584 702,791 99.2% 4,563 707,354 99.8%
2017-18 747,495 738,881 98.8% 7,118 745,999 99.8%
2018-19 780,734 771,772 98.9% 7,121 778,892 99.8%
2019-20 821,350 809,645 98.6% 9,736 819,381 99.8%
2020-21 849,985 838,261 98.6% 9,903 848,164 99.8%
2021-22 886,964 877,202 98.9% 7,275 884,478 99.7%
2022-23 949,927 938,165 98.8% 7,651 945,816 99.6%
2023-24 1,018,424 1,004,499 98.6% - 1,004,499 98.6%
Source: Santa Barbara County Auditor-Controller's Office Note: Figures listed above are only representative of Secured taxes collected.

Schedule 8
123 278
Number Hotels Number Hotels
Fiscal Year
City Wide
Occupancy
Rate
Average Daily
Room Rates
50 or More
Rooms
Under 50
Rooms
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
2023 74% $ 250.75 $ 4,602,304 $ 1,705,808
8 26
2024 70% $ 256.19 $ 5,172,120 $ 1,630,716
8 27
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
124 279
Fiscal
Year
Monthly
Base Rate
Rate
Per CCF
(748 Gallons)
Outside
Users
Rate per CCF
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
2023 75.081 4.082 5.18

4.623 6.08

5.354
2024 79.211 4.302 5.18

4.873 6.08

5.644
Source: City of Solvang Finance Department
Notes:
(1) This rate is for a 5/8" meter
(2) The City of Solvang went to three tiered rates, effective August 1, 2022.

This rate is for 0 to 1500 Cubic Feet.
(3) This rate is for 1501 - 3500 Cubic Feet.
(4) This rate is for 3501 Cubic Feet and above.

Schedule 10
City of Solvang
Water Rates
Last Ten Fiscal Years
125 280
Single Family Multi Family
Residential Residential Commercial Other
Fiscal
Year Totals
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
2023 3,117,121 386,972 844,183 694,659 5,042,935
1,774 76 212 129 2,191
2024 3,203,585 411,619 875,155 743,234 5,233,593
1,776 76 222 111 2,185
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
126 281
2024 2023 2022 2021
Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Alisal Guest Ranch Brookside Association Brookside Association Atterdag Village Atterdag Village City of Solvang Chumash Casino Resort Chumash Casino Resort Chumash Casino Resort Hotel Corque 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 Svendsgaard's Lodge Svendsgaard's Lodge Solvang Mesa, LLMD Solvang Mesa, LLMD The Landsby/Mad&Vin The Landsby/Mad&Vin The Landsby/Mad&Vin SY Cottage Hospital Vinland Hotel Vinland Hotel Turtle Hospitality The Landsby/Mad&Vin Worldmark Worldmark Worldmark Worldmark
2020 2019 2018 2017
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 Holiday Inn Express Hadsten House Rancho S.Y. Mobile Estates Rancho S.Y. Mobile Estates Mission Oaks Holiday Inn Express Solvang Mesa, LLMD Solvang Mesa, LLMD Rancho S.Y. Mobile Estates Mission Oaks Solvang School Solvang School Solvang Mesa, LLMD Rancho S.Y. Mobile Estates Vinland Hotel Vacations Inn Solvang Solvang School Solvang School Worldmark Worldmark Worldmark Worldmark
2016 2015
Alisal Guest Ranch Alisal Guest Ranch
Atterdag Village Atterdag Village
Chumash Casino Resort Chumash Casino Resort
City of Solvang City of Solvang
Hadsten House Hadsten House
Holiday Inn Express Inland Pacific Builders
Inland Pacific Builders Mission Oaks
Mission Oaks Rancho S.Y. Mobile Estates
Rancho S.Y. Mobile Estates Solvang School
Worldmark Worldmark
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)
127 282
Fiscal
Year
General
Obligation
Bonds
Lease
Revenue
Bonds
Special
Assessment
Bonds1 Notes
Lease
Obligations
Lease
Obligations
Installment
Agreement
Total
Outstanding
Debt
Percentage of
Personal
Income Population
Debt per
Capita
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 $ -
2023 - - - - - - - - 0%2 59863 $ -
2024 - - - - - - - - 0%2 56633 $ -
Notes:
(1) Presented net of original discounts and premiums
(2) Personal income is disclosed on Schedule 17.
(3) California Department of Finance
Governmental Activities Business-type Activities
Schedule 13
City of Solvang
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Dollars in Thousands except for Per Capita)
128 283
Governmental Unit:

Debt
Outstanding
Estimated
Percentage
Applicable2
Amount
Applicable to
Primary
Government
Direct and Overlapping General Fund Debt
Santa Barbara County Certificates of Participation $ 118,125,000 1.499% $ 1,770,694 Santa Ynez Valley Union High School District COP 807,000 18.554% $ 149,731 Total Gross Direct and Overlapping General Fund Debt $ 1,920,425 Less: Santa Barbara County Supported Obligations $ (16,564) Total Net Direct and Overlapping General Fund Debt $ 1,903,861 Overlapping Tax and Assessment Debt
Allan Hancock Joint Community College District $ 149,975,032 4.604% $ 6,904,850 Santa Ynez Valley Union School District $ 9,945,000 18.554% $ 1,845,195 Buellton Union School district 10,920,260 0.949% $ 103,633 Solvang School District 7,978,721 81.875% $ 6,532,578
Total Overlapping Tax and Assessment Debt $ 15,386,257
Subtotal, overlapping debt $ 17,306,681 3
City of Solvang direct debt 0 100.000% $ -
Total direct and overlapping debt $ 17,290,117
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, 2024
(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. 129 284
Total Debt
Applicable
Total Debt To Limit as
Fiscal Debt Applicable Percentage
Year Limit To Limit of Debt Limit
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%
2023 $ 57,199,898 $ - 0.00%
2024 $ 61,205,426 $ - 0.00%
Assessed Value $ 1,632,144,686
Debt Limit (3.75% of assessed value) 61,205,426
Less debt applicable to limit:

General Obligation bonds 0
Total debt applicable to limit 0
Legal Debt Margin $ 61,205,426
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 2024
Schedule 15
City of Solvang
Legal Debt Margin Information
Last Ten Fiscal Years
130 285
Special
Fiscal Assessment
Year Collections Principal Interest Coverage
2015 - - - -
2016 - - - -
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
2022 - - - -
2023 - - - -
2024 - - - -
Water Capital Less Net
Service Impact Operating Available
Revenues1 Fees Expenses2 Revenue Principal Interest Coverage 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 - - -
2023 5,241,879 43,735 3,949,155 1,336,459 - - -
2024 5,644,496 22,263 4,822,927 843,832 - - -
Wastewater Capital Less Net
Service Impact Operating Available
Revenues1 Fees Expenses2 Revenue Principal Interest Coverage 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) - - -
2023 1,988,868 - 1,908,087 80,781 - - -
2024 2,464,188 - 2,159,922 304,266 - - -
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 Lease
Wastewater Lease Obligation
Debt Service
Special Assessment Bonds
Debt Service
131 286
Fiscal Year Population1 Personal Income
Per Capita
Personal
Income2
Unemployment
Rate3
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
2023 5660 350,161,560 61,866 2.90%3
2024 5663 369,289,893 65,211 3.50%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
132 287
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 11.90% Alisal Guest Ranch 350 1 11.29% Alisal Guest Ranch 389 1 13.41% Atterdag Village (formerly
Solvang Lutheran Home) 182 2 5.87%
Atterdag Village (formerly
Solvang Lutheran Home) 187 2 6.03%
Atterdag Village (formerly
Solvang Lutheran Home) 182 2 6.28%
Santa Ynez Cottage
Hospital 107 3 3.45%
Santa Ynez Cottage
Hospital 130 3 4.19% New Frontiers Market 101 3 3.48%
New Frontiers Market 103 4 3.32% New Frontiers Market 95 4 3.06% Santa Ynez Cottage
Hospital 101 4 3.48%
Landsby/Mad&Vin 70 5 2.26%
Solvang Unified School
District 76 5 2.45% Landsby/Mad & Vin 76 5 2.62%
Solvang Unified School
District 66 6 2.13% Landsby/Mad&Vin 70 6 2.26% Valley Fresh Market 67 6 2.31% Valley Fresh Market 55 7 1.77% Valley Fresh Market 58 7 1.87% Solvang Unified School
District 62 7 2.14%
Solvang Brew 54 8 1.74% Hotel Corque 56 8 1.81% Solvang Brew 52 8 1.79% Hotel Corque 40 9 1.29% Solvang Brew 46 9 1.48% Hotel Corque 37 9 1.28% City of Solvang 32 10 1.03% Vinland Hotel and Lounge 30 10 0.97% Nielsen Building Materials 24 10 0.83% Totals 1078 34.77% Totals 1098 35.42% Totals 1091 37.62% 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 326 1 10.87% Alisal Guest Ranch 331 1 11.41% Alisal Guest Ranch 369 1 12.30% Atterdag Village (formerly
Solvang Lutheran Home) 163 2 5.43%
Atterdag Village (formerly
Solvang Lutheran Home) 174 2 6.00%
Atterdag Village (formerly
Solvang Lutheran Home) 177 2 5.90%
New Frontiers Market 107 3 3.57% New Frontiers Market 103 3 3.55% New Frontiers Market 115 3 3.83% Santa Ynez Cottage
Hospital 88 4 2.93%
Santa Ynez Cottage
Hospital 93 4 3.21%
Santa Ynez Cottage
Hospital 93 4 3.10%
Landsby/Mad & Vin 69 5 2.30%
Solvang Unified School
District 64 5 2.21% Landsby/Mad & Vin 65 5 2.17%
Solvang Unified School
District 68 6 2.27% Valley Fresh Market 62 6 2.14%
Nielsen's Market/Valley
Fresh 64 6 2.13%
Valley Fresh Market 65 7 2.17% Landsby/Mad & Vin 58 7 2.00% Solvang Brew 58 7 1.93% Solvang Brew 51 8 1.70% Hotel Corque 35 8 1.21%
Solvang Unified School
District 57 8 1.90%
Hotel Corque 38 9 1.27% Nielsen Building Materials 27 9 0.93% Hotel Corque 54 9 1.80% Nielsen Building Materials 27 10 0.90% Solvang Brew 0* 10 0.00% Root 246 46 10 1.53% Totals 1002 33.40% Totals 947 32.66% Totals 1098 36.60% 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 356 1 12.28% Alisal Guest Ranch 303 1 10.45% Alisal Guest Ranch 294 1 10.50% Atterdag Village (formerly
Solvang Lutheran Home) 170 2 5.86%
Atterdag Village (formerly
Solvang Lutheran Home) 170 2 5.86%
Atterdag Village (formerly
Solvang Lutheran Home) 167 2 5.96%
Santa Ynez Cottage
Hospital 87 3 3.00%
Santa Ynez Cottage
Hospital 96 3 3.31%
Santa Ynez Cottage
Hospital 91 3 3.25%
New Frontiers Market 77 4 2.66% Solvang Brew 75 4 2.59% Solvang Brew 75 4 2.68% Solvang Brew 68 5 2.34%
Solvang Unified School
District 68 5 2.34% New Frontiers Market 70 5 2.50%
Solvang Unified School
District 58 6 2.00% Nielsens Market 62 6 2.14% Nielsens Market 69 6 2.46% Landsby 55 7 1.90% New Frontiers Market 55 7 1.90%
Solvang Unified School
District 67 7 2.39%
Hotel Corque 53 8 1.83% Landsby 55 7 1.90% Hotel Corque 51 8 1.82% Nielsens Market 52 9 1.79% Hotel Corque 47 8 1.62% Landsby 46 9 1.64% Root 246 47 10 1.62% Root 246 42 9 1.45% Root 246 46 9 1.64% Totals 1023 35.28% Totals 973 33.55% Totals 976 34.86%
Notes:

Schedule 18
City of Solvang
Ten Largest Principal Employers
Last Nine Fiscal Years
Fiscal Year Ended June 30, 2024 Fiscal Year Ended June 30, 2023 Fiscal Year Ended June 30, 2022 Sources: City of Solvang Finance Department, State of California Employment Development Department, and City of Solvang Employers (1) Total City Labor Force is 3100, based on State of California Employment Development Department Data for FY 2023-24.

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, 2021 Fiscal Year Ended June 30, 2020 Fiscal Year Ended June 30, 2019 Fiscal Year Ended June 30, 2018 Fiscal Year Ended June 30, 2017 Fiscal Year Ended June 30, 2016 133 288
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 3.00 6.00 4.00 6.50 Public safety2:

Police (Contract) - - - - - - - - - -
Fire - - - - - - - - - -
Planning:

Planning 2.22 2.22 2.22 2.22 2.25 2.25 - - 1.00 3.00
Building and safety2 0.90 0.90 0.90 0.90 0.95 0.95 - - - - Public works:

Engineering 0.65 1.20 1.20 1.55 2.10 2.10 1.20 1.00 0.20 0.40 Roads and streets 3.95 4.05 4.05 3.85 4.05 4.05 3.00 4.65 2.50 3.60 Maintenance 2.51 2.51 2.51 2.51 1.65 1.65 1.05 3.15 2.30 3.00 Parks:

Parks and recreation 5.84 5.84 5.84 5.81 5.30 5.00 2.00 4.00 2.00 4.00 Water:

Treatment and distribution 5.00 5.15 5.15 5.10 5.05 5.05 4.90 5.05 5.05 6.00 Wastewater:

Collection and treatment 6.90 7.10 7.10 7.00 6.95 6.95 5.85 6.95 6.95 6.00 Totals 34.97 35.97 35.97 35.94 35.30 35.00 22.00 31.80 26.00 34.50 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
134 289
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police1:

Physical arrest 102 126 136 107 154 178 105 173 126 135 Traffic violations 67 41 94 81 51 99 102 116 98 104
Fire1:

Emergency responses 358 615 652 678 845 598 652 660 450 667 Fires extinguished 9 12 12 9 17 11 11 7 10 13
Planning:

Building permits issued 146 230 212 208 205 181 256 174 275 206 Public Works:

Street Maintenance Centerline Miles 0.44 4 4 0.08 3 3.4 3.4 3.4 3.4 3.4 Parks:

Community events held 21 17 14 14 14 9 3 11 14 12
Water:

Number new connections 40 33 14 2 1 - 1 4 1 4
Daily average water
production in MGD 1.05 0.94 0.98 1.10 1.07 1.14 1.23 1.16 1.12 1.07 Daily average water
consumption in MGD 0.96 0.86 0.89 1.05 0.98 1.01 1.17 1.09 0.91 0.84 Wastewater:

Number new connections 43 33 14 2 1 1 1 4 - 2
Daily average treatment
in millions gallons(MGD) 0.69 0.62 0.65 0.62 0.65 0.66 0.62 0.63 0.70 0.73 Source: City of Solvang Finance Department and 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 20
City of Solvang
Operating Indicators by Function/Program
Last Ten Fiscal Years
135 290
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Fire1
Stations - - 0 0 0 0 0 0 0 0
Engines - - 0 0 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 36 36 36 36 36 36 36 36 36 36
Number connections 2,178 2,211 2,225 2,227 2,228 2,228 2,228 2,211 2,214 2,218 Wastewater:

Miles of sewers 42 42 42 42 42 42 42 42 42 42
Number connections 2,090 2,123 2,137 2,139 2,140 2,141 2,141 2,145 2,145 2,147 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
136 291
City of Solvang
Presentation to the City CouncilJanuary 27, 2025
292
2024 Audit of
City of Solvang
293
Agenda
• Deliverables and Scope of the Audit• Areas of Primary Audit Risk• Auditor’s Report • Required Communications• New Accounting Standards• Conclusion & Discussion/Questions 3 294
Deliverables and
Scope of the Audit
295
Deliverables and Scope of the Audit
5 • Independent Auditor’s Report on the City of Solvang’s Basic Financial Statements (BFS).• Independent Auditor’s Reports on Internal Control Over Financial Reporting and on Compliance and Other Matters.
• Agreed-Upon Procedures on Appropriation Limit Schedule.• Communications with Those Charged with Governance. • Letter used to summarize communication of various significant matters to those charged with governance.
• Annual Street Report to State Controller’s Office• Annual Financial Transactions Reports to State Controller’s Office for City and Public Finance Authority
296
Areas of Primary
Audit Risk
297
Areas of Primary Audit Risk
7 The risk of management override of controls is addressed by the 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.

Revenues & Receivables (Taxes, Grants, Notes, etc.) – Improper Revenue Recognitions:
• Governmental Funds: Confirm/validate property taxes, sales taxes, transient occupancy taxes, franchise taxes & other significant revenues/receivables. • Enterprise Funds: Perform analytical procedures
298
Auditor’s Report
299
Auditor’s Report
9 • Audit performed in accordance with Generally Accepted Auditing Standards• Audit performed in accordance with Government Auditing Standards Auditing Standards
• 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 Unmodified opinion
300
Required
Communications
301
Required Communications
11 Auditor’s Responsibilities
Opinion on whether financial statements are fairly stated in accordance with U.S. GAAP Evaluate internal control over financial reporting including tone at the topEvaluate compliance with laws, contracts, and grants.

Ensure financial statements are clear and transparent
Communicate with the governing body
Management’s Responsibilities
Management is responsible for the financial statements
Establish and maintain internal control over financial reportingMaking all financial records available to usEstablish internal control to prevent and detect fraud Inform us of all known and suspected fraud
Comply with laws and regulations
Take corrective action on audit findings
302
Required Communications
12 • It is our responsibility to maintain independence• We will maintain our independence by strict adherence to the AICPA and the Board of Accountancy rules and regulations
• No services performed that could affect our independence other than preparing the financial statements.

Independence
• Within the time frame communicated to the City in our engagement letters.

Timing of the Audit
• The City adopted the following new pronouncements during the year:
• GASB Statement No. 100 – Accounting Changes and Error Corrections Significant Accounting Policies and Unusual Transactions 303
Required Communications
13 • Capital assets depreciation and useful life• Pension and OPEB related estimates Management Judgment and Accounting Estimates
• No difficulties encountered.

Difficulties Encountered in Performing the Audit
• Management has posted all proposed audit adjustments.

Significant Audit Adjustments and Unadjusted Differences • No material weaknesses identified during our audit.

Deficiencies in Internal Control over Financial Reporting 304
New Accounting Standards
14 2025
• GASB Statement No. 101 – Compensated Absences• GASB Statement No. 102 – Certain Risk Disclosures 2026
• GASB Statement No. 103 – Financial Reporting Model Improvements• GASB Statement No. 104 – Disclosure of Certain Capital Assets 305
Thank You for Allowing us to
Provide Audit Services to the City of Solvang.
306

CITY COUNCIL STAFF REPORT
AGENDA ITEM 8.b
Meeting Date: January 27, 2025
SUBJECT: Discussion and possible action to Adopt Resolution No. 25-1278 Granting Consent to the County of Santa Barbara to Establish the Santa Barbara County Wine Improvement District (SBCWID) and include the City of Solvang in the Established SBCWID
PREPARED BY: Randy Murphy, City Manager
DISCUSSION:

The SBCWID is a benefit assessment district proposed to create a revenue source to help fund destination sales and marketing promotions for Santa Barbara County wine tasting facilities. This approach has been used successfully in other destination areas throughout the state to increase assessed wine tasting facility sales and revenue. The proposed SBCWID includes all wine tasting facilities, existing and in the future, located within the boundaries of the County, which includes the unincorporated areas of the County, and the cities of Carpinteria, Santa Barbara, Goleta, Solvang, Buellton, Lompoc, Santa Maria, and Guadalupe. Because the proposed SBCWID will include the City of Solvang, consent must be granted by the City Council of Solvang in order for the City of Solvang to be included in the creation, operation and future renewals of the SBCWID.

Wine tasting facility business owners decided to pursue formation of the SBCWID in order to establish a revenue source devoted to promoting Santa Barbara County wine testing facilities. If established, the SBCWID would generate approximately $1,650,000 on an annual basis for promotion of wine tasting facilities specific to Santa Barbara County.

WINE IMPROVEMENT DISTRICTS
Wine Improvement Districts (WIDs) utilize the efficiencies of private sector operation in the marketbased promotion of assessed businesses. These special assessment districts allow assessed business owners to organize their efforts to increase promotions & engagement. Business owners within the WID fund the WID, and those funds are used to provide services that are desired by and benefit the assessed businesses within the WID.

WID benefits:
 Funds cannot be diverted for other government programs;  They are customized to fit the needs of each destination;  They allow for a wide range of services; including: promotion, engagement, and sales lead generation;
 They are designed, created and governed by those who will pay the assessment; and  They provide a stable funding source for promotion of assessed businesses.

In California, WIDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between WIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the WID.
307

MANAGEMENT DISTRICT PLAN
The Management District Plan (Attachment C) includes the proposed boundary of the SBCWID, a service plan and budget and a proposed means of governance. The SBCWID will include all wine tasting facilities, existing and in the future, located within the boundaries of the County, which includes the unincorporated areas of the County, and the cities of Carpinteria, Santa Barbara, Goleta, Solvang, Buellton, Lompoc, Santa Maria, and Guadalupe.

The annual assessment rate is one percent (1%) of gross sales revenue of assessed wine tasting facilities. Based on the benefit received, assessments will not be collected on purchases made outside of the state of California or purchases made pursuant to contracts executed prior to March 1, 2025.

Revenue generated from the SBCWID is intended only to provide programs and services for assessed businesses, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wine tasting facilities outside of the state of California. Assessment dollars may be spent outside of California to elevate the notoriety of the County as a premier winery destination with the desired outcome of increased in-person visitation to businesses paying the assessment.

The proposed SBCWID will have a five (5) year term, beginning April 1, 2025, or as soon as possible thereafter, and ending five (5) years from its start date. The assessment will be implemented beginning April 1, 2025. Once per year beginning on the anniversary of SBCWID formation there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the SBCWID.

A third-party collection agency will be responsible for collecting the assessment on a quarterly basis from each assessed wine tasting facility. The third-party collection agency shall forward the assessments to the Santa Barbara County Vintners Association, which will have the responsibility of managing SBCWID programs as provided in the Management District Plan. The third-party collection agency shall be paid a fee of up to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

ALTERNATIVES:

Council could choose not to adopt the Resolution Granting Consent. This would mean that all Solvangbased wine businesses would be left out of any marketing materials produced by SBCWID.

FISCAL IMPACT:

None immediately. Because the SBCWID programs are intended to increase visitation to wine tasting facilities in the County, including the City of Solvang, there may be an increase in sales tax collections.

ATTACHMENTS:

A. Resolution Granting Consent to the County of Santa Barbara to Form the Santa Barbara County Wine Improvement District (SBCWID) and Include the City of Solvang in the Established SBCWID.

B. Adopted Resolution of the County of Santa Barbara Requesting Consent from the City of Solvang C. SBCWID Management District Plan
D. Public Comment Received
308
R 25-1278 SBCWID
RESOLUTION NO.25-1278

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOLVANG CALIFORNIA GRANTING

CONSENT TO THE COUNTY OF SANTA BARBARA TO ESTABLISH THE SANTA BARBARA

COUNTY WINE IMPROVEMENT DISTRICT (SBCWID) AND INCLUDE THE CITY OF SOLVANG IN

THE ESTABLISHED SBCWID
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the County of Santa Barbara (County) to establish business improvement districts for the purposes of promoting assessed businesses; and WHEREAS, the Santa Barbara County Vintners Association, wine tasting facility owners, and representatives from the County have met to consider the formation of the SBCWID; and WHEREAS, the Santa Barbara County Vintners Association has drafted a Management District Plan (Plan) which sets forth the proposed boundary of the SBCWID, a service plan and budget, and a proposed means of governance; and
WHEREAS, the proposed SBCWID includes all wine tasting facilities, existing and in the future, located within the boundaries of the County, which includes the unincorporated areas of the County and the cities of Carpinteria, Santa Barbara, Goleta, Solvang, Buellton, Lompoc, Santa Maria, and Guadalupe; and
WHEREAS, the County has requested consent to form the SBCWID in the City of Solvang with adoption of Santa Barbara County Board of Supervisors Resolution No. 24-282, dated December 17, 2024.

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

SECTION 1: The City Council of the City of Solvang adopts as findings the recitals set forth above SECTION 2: Santa Barbara County is hereby granted consent to include the City of Solvang in the SBCWID, for the formation of the SBCWID and future renewals.

SECTION 2. That this resolution shall be effective upon adoption.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this resolution and shall cause a certified copy to be filed in the book of original resolutions.

SECTION 4. The Clerk of the City of Solvang is hereby directed to transmit a certified copy of this Resolution to the Clerk of the County of Santa Barbara.

PASSED, APPROVED, AND ADOPTED on this 27th day of January, 2025.

______________________________
David Brown, Mayor
APPROVED AS TO FORM: ATTEST:

______________________________ ______________________________ Craig Steele, Acting City Attorney Annamarie Porter, City Clerk 309
R 25-1278 SBCWID

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. 25-1278 was passed and adopted by the City Council of the City of Solvang at a regular meeting of said City Council held on the 27th day of January 2025, 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
310
311
312
313
314
315
316
317
318
319
320
2025-2030

SANTA BARBARA COUNTY WINE IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
November 26, 2024 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq.
321
Table of Contents
I. Overview .............................................................................................................................3 II. Background..........................................................................................................................5 III. Boundary .............................................................................................................................6 IV. Assessment Budget and Services ...........................................................................................7 A.Annual Service Plan..................................................................................................................................7 B.Annual Budget...........................................................................................................................................9 C.California Constitutional Compliance....................................................................................................9 D.Assessment...............................................................................................................................................10 E.Penalties and Interest .............................................................................................................................11 F. Time and Manner for Collecting Assessments...................................................................................12 V. Governance .......................................................................................................................13 A.Owners’ Association...............................................................................................................................13 B. Brown Act and California Public Records Act Compliance ............................................................13 C.Annual Report.........................................................................................................................................13 Appendix 1 – Law......................................................................................................................14 Appendix 2 – Assessed Businesses..............................................................................................26 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
322
SBCWID Management District Plan 3
November 26, 2024
I. OVERVIEW
Developed by Santa Barbara County wine tasting facilities and the Santa Barbara County Vintners Association (SBCVA), a non-profit organization, and the County of Santa Barbara, the Santa Barbara County Wine Improvement District (SBCWID) is an assessment district proposed to provide specific benefits to payors, by funding promotions & engagement efforts with the goal to advance assessed businesses in Santa Barbara County. This approach has been used successfully in other wine regions throughout the country to provide the benefit of driving increased business sales directly to payors.

Location: The SBCWID includes all wine tasting facilities, existing and in the future, located within the boundaries of the County of Santa Barbara (County), which includes the unincorporated areas of the County, and the cities of Carpinteria, Santa Barbara, Goleta, Solvang, Buellton, Lompoc, Santa Maria, and Guadalupe, as shown on the map in Section III.

Services: The SBCWID is designed to provide specific benefits directly to payors by increasing wine tasting facility sales and revenue therefrom. Promotions & engagement will promote assessed wine tasting facilities in the SBCWID to increase wine tasting facility sales revenue.

Budget: The total SBCWID annual assessment budget for the initial year of its five (5) year operation is anticipated to be approximately $1,650,000. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as sales do and as businesses open and close.

Cost: The annual assessment rate is one percent (1%) of gross sales revenue of assessed wine tasting facilities. Based on the benefit received, assessments will not be collected on purchases made outside of the state of California or purchases made pursuant to contracts executed prior to April 1, 2025. Revenue generated from the SBCWID is intended only to provide programs and services for assessed businesses, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wine tasting facilities outside of the state of California. Assessment dollars may be spent outside of California to elevate the notoriety of the Santa Barbara County as a premier winery destination with the desired outcome of increased in-person visitation to businesses paying the assessment.

Collection: A third-party collection agency shall be responsible for collecting the assessment on a quarterly basis (including any delinquencies, overdue charges and interest) from each assessed wine tasting facility located in the boundaries of the SBCWID. The thirdparty collection agency shall take all reasonable efforts to collect the assessments from each assessed wine tasting facility.

Duration: The SBCWID will have a five (5) year life, beginning on April 1, 2025 or as soon as possible thereafter, and ending five (5) years from the start date. After five (5) years, the SBCWID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if assessed business owners support continuing the SBCWID programs. 323
SBCWID Management District Plan 4
November 26, 2024
Management: The SBCVA will serve as the Owners’ Association to provide improvements and activities for the SBCWID. The Owners’ Association must provide an annual report on activities and expenditures to the County, which is also available to assessed business owners.
324
SBCWID Management District Plan 5
November 26, 2024
II. BACKGROUND
Wine Improvement Districts are an evolution of the traditional Business Improvement District (BID).

BIDs utilize the efficiencies of private sector operation in the market-based promotion of business districts. BIDs allow business owners to organize their efforts to increase sales and promotional efforts. Business owners within the district fund a BID, and those funds are used to provide services that the businesses desire and benefit the businesses within the district.

Business Improvement District services may include, but are not limited to:
➢ Marketing of the District
➢ Business Promotion Activities
➢ Infrastructure Improvements
In California, BIDs are formed pursuant to the 94 Law. This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between BIDs and other special benefit assessment districts is that funds raised are managed by the private non-profit corporation governing the district.

There are many benefits to Business Improvement Districts:
➢ Funds cannot be diverted for other government programs; ➢ Services are customized to fit the needs of each district; ➢ They allow for a wide range of services, including those listed above; ➢ Business Improvement Districts are designed, created and governed by those who will pay the assessment; and
➢ They provide a stable funding source for business promotion.

The 94 Law is provided in Appendix 1 of this document.
325
SBCWID Management District Plan 6
November 26, 2024
III. BOUNDARY
The SBCWID will include all wine tasting facilities, existing and in the future, located within the boundaries of the County, which includes the unincorporated areas of the County, and the cities of Carpinteria, Santa Barbara, Goleta, Solvang, Buellton, Lompoc, Santa Maria, and Guadalupe, as shown on the map below.

Wine tasting facility means: A business, primarily used for the retail marketing and sales of wine and related goods, open to all settings at which wine and related goods can be sold, including but not limited to: publicly available settings, by appointment only reservations, private and exclusive tastings, or other public or private events where wine and related goods may be sold. Wine tasting facility includes, but is not limited to, vineyard locations with onsite tastings, hospitality and retail rooms on site at producing wineries, and stand-alone tasting rooms in commercial areas. All wine tasting facilities must possess a 02 Department of Alcohol Beverage Control license.

A complete listing of assessed wine tasting facilities within the SBCWID can be found in Appendix 2. 326
SBCWID Management District Plan 7
November 26, 2024
IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the County of conferring the benefits or granting the privileges. The privileges and services provided with the SBCWID funds are promotions & engagement available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by SBCVA. The chart below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is estimated to be $1,650,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the assessment budget shall remain the same. However, the County and the SBCVA board shall have the authority to adjust budget allocations between the categories by no more than twenty percent (20%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the SBCWID and/or the County, any and all assessment funds may be used for the costs of defending the SBCWID and/or the County. The costs of creating the SBCWID may be repaid to SBCVA reserves by deducting repayment funds proportionally from budget categories.

Each budget category includes all costs related to providing that service. For example, the promotions & engagement budget includes the cost of staff time dedicated to overseeing and implementing the promotions & engagement program. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by the Owners’ Association on an as-needed basis.

Promotions & Engagement, 73%
$1,204,500
Administration, 20%
$330,000
Contingency / Reserve, 5%
$82,500
Collection Fee, 2%
$33,000
Initial Annual Assessment Budget -
$1,650,000
327
SBCWID Management District Plan 8
November 26, 2024
Promotions & Engagement
The promotions & engagement program will promote Santa Barbara County as a premium winegrowing region and a premier global wine destination and leader in the global wine community.

The promotions & engagement program will have a central theme of promoting Santa Barbara County as a desirable place to visit and a desirable area to purchase wines. The program has the goal of increasing visitation, retail sales at and recognition for assessed wine tasting facilities, and may include the following activities:
• Brand development initiatives to increase awareness and demand for assessed wine tasting facilities;
• Create innovative ways to deliver Santa Barbara County content to potential visitors to increase awareness and demand for assessed wine tasting facilities; • Customer segmentation, market analysis, and other research to increase awareness and demand for wine tasting facilities;
• Digital marketing initiatives and campaigns to increase awareness and demand for wine tasting facilities;
• Maintain and optimize SBCountyWines.com, and Santa Barbara Vintners social media channels to showcase the breadth of reasons to visit the destination to increase awareness and demand for assessed wine tasting facilities;
• Festivals and events to increase demand for Santa Barbara County wine from assessed wine tasting facilities;
• Support education regarding cultivation practices, water management, vineyard management, and other viticulture practices for assessed wineries;
• Support education amongst assessed wineries to cultivate wine expertise and community among assessed wineries’
• Educational workshops for assessed wine tasting facilities to increase visitation and sales as assessed wine tasting facilities; and
• Developing and implementing crisis communication plans during disaster events within the SBCWID.

The Owners’ Association will also build and maintain relationships with County and City governments to educate local leaders on issues that impact assessed wine tasting facilities, while refraining from activities that seek to influence legislation. Education and engagement will include collaboration with the County Planning Commission, Board of Supervisors, Farm Bureau, and Department of Agriculture, as well as City Councils.

Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs and other general administrative costs such as insurance, legal, and accounting fees.

A portion of the budget may be used to cover the cost of a third-party to audit the SBCWID assessment funds as well as businesses paying the SCBWID assessment. The results of the audit shall be made available to the County, SBCVA, and businesses paying the SBCWID assessment.

Collection Fee
A third-party collection agency shall be paid a fee up to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration. 328
SBCWID Management District Plan 9
November 26, 2024
Contingency / Reserve
The budget includes a contingency line item to account for lower than anticipated assessments or higher than expected program costs. If there are contingency funds collected, they may be held in a reserve fund or utilized for other programs, administration, or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Owners’ Association. Contingency/reserve funds may be spent on SBCWID programs or administrative and renewal costs in such proportions as determined by the Owners’ Association. The reserve fund may be used for the costs of renewing the SBCWID.

B. Annual Budget
The total five (5) year assessment budget is projected at approximately $1,650,000 annually, or approximately $8,250,000 through 2030. This amount may fluctuate as sales do and as wine tasting facilities open and close.

C. California Constitutional Compliance
The SBCWID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the SBCWID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the SBCWID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the County of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within SBCWID. The activities described in this Plan are specifically targeted to increase sales for assessed wine tasting facilities within the boundaries of the SBCWID, and are narrowly tailored. SBCWID funds will be used exclusively to provide the specific benefit of increased sales revenue directly to the assessees. Assessment funds shall not be used to feature non-assessed wine tasting facilities in SBCWID programs, or to directly generate sales for non-assessed wine tasting facilities. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed wine tasting facilities.

The assessment imposed by this SBCWID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in wine tasting facility sales revenue. The specific benefit of an increase in sales revenue for assessed wine tasting facilities will be provided only to wine tasting facilities paying the district assessment, with promotions & engagement promoting wine tasting facilities paying the SBCWID assessment. The promotions & engagement programs will be designed to increase sales revenue at each assessed wine tasting facility. Because they are necessary to provide the promotions & engagement that specifically benefit the assessed wine tasting facilities, the administration and 1 Howard Jarvis Taxpayers Association v. City of San Diego (1999) 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1)
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SBCWID Management District Plan 10
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contingency services also provide the specific benefit of increased sales revenue to the wine tasting facilities.

Although the SBCWID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” 4 The legislature has
recognized that promotions & engagement services like those to be provided by the SBCWID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
SBCWID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the SBCVA, and reports submitted on an annual basis to the County. Only assessed wine tasting facilities will be featured in marketing materials, receive sales leads generated from SBCWID-funded activities, be featured in advertising campaigns, and benefit from other SBCWID-funded services. Non-assessed wine tasting facilities will not receive these, nor any other, SBCWID-funded services and benefits.

D. Assessment
The annual assessment rate is one percent (1%) of gross sales revenue of assessed wine tasting facilities. Based on the benefit received, assessments will not be collected on purchases made outside of the state of California or purchases made pursuant to contracts executed prior to April 1, 2025.

Revenue generated from the SBCWID is intended only to provide programs and services for assessed wine tasting facilities, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wine tasting facilities outside of the state of California.

Assessment dollars may be spent outside of California to elevate the notoriety of the San Barbara County as a premier winery destination with the desired outcome of increased in-person visitation to business paying the assessment.

The assessment was calculated based on the total cost of the activities to be provided for the benefit of the businesses within the SBCWID with costs allocated based on the proportional benefit conferred to each business. Activities funded by the SBCWID are specifically targeted to increase wine tasting facility sales revenue at assessed businesses. All wine tasting facility sales do not represent the same benefit to the payors. For example, a higher priced wine tasting facility is of greater benefit than a 3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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lower priced wine tasting facility because the assessee derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to assessed businesses with higher priced wine tasting facility sales.

The term “gross sales revenue” as used herein means: all direct-to-consumer (DTC) sales of wine, wine club shipments (whether shipped or picked up), ticket sales, tasting fees, tours and private and public special events, merchandise, prepared foods for on-premise or off-premise consumption (whether sold in a tasting room or a stand-alone restaurant on-premise), orders placed via telemarketing, telephone, online, email, whether carried out at the time of purchase, shipped or picked up at a later date (pre-sales). Gross sales revenue shall not include any federal, state or local taxes collected, including but not limited to sales and use taxes.

The assessment is levied upon and a direct obligation of the assessed wine tasting facility. However, the assessed wine tasting facility may, at its discretion, pass the assessment on to customers. The amount of assessment, if passed on to each customer, shall be disclosed in advance and separately stated from the amount charged and any other applicable taxes, and each customer shall receive a receipt for payment from the business. If the SBCWID assessment is identified separately it shall be disclosed as the “Wine Preserve Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed wine tasting facility even if it is passed on to customers. The California Department of Tax and Fee Administration (CDTFA) issued a written opinion that state sales tax applies to the revenue generated from business improvement district assessments on items where state sales tax is levied. In light of CDTFA’s opinion, businesses that pay both state sales tax and SBCWID assessments on sales are advised to collect sales tax on the assessment revenue.

Bonds shall not be issued.

E. Overdue Charges and Interest
The SBCWID shall reimburse the third party collection agency for any costs associated with collecting unpaid assessments.

1. Original Delinquency
Any wine tasting facility that fails to remit any assessment imposed by this section within the time required shall pay an overdue charge of ten percent (10%) of the amount of the assessment in addition to the assessment.

2. Continued Delinquency
Any wine tasting facility that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency overdue charge of ten percent (10%) of the assessment in addition to the assessment and the ten percent (10%) overdue charge first imposed.

3. Fraud
If the third-party collection agency determines that the nonpayment of any remittance due under this article is due to fraud, an overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charges stated in paragraph one (1) and two (2) above of this section.

4. Interest
In addition to the overdue charges imposed, any wine tasting facility who fails to remit any assessment imposed by this section shall pay interest at the rate of one-quarter of one percent (0.25%) per month or fraction thereof on the amount of the assessment, exclusive of overdue charges, from the date on which the remittance first became delinquent until paid. 331
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F. Time and Manner for Collecting Assessments
The SBCWID assessment will be implemented beginning April 1, 2025, or as soon as possible thereafter, and continuing for five (5) years from the start date. A third-party collection agency will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, overdue charges and interest) from each wine tasting facility located in each jurisdiction within the SBCWID. A third-party collection agency shall take all reasonable efforts to collect the assessments from each wine tasting facility. A third-party collection agency shall forward the assessments collected to the Owners’ Association.
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V. GOVERNANCE
A. Owners’ Association
Pursuant to Streets and Highways Code §36651, the MDP may identify the body that shall implement the proposed program, which shall be the Owners' Association as defined in Streets and Highways Code §36612. The SBCVA will serve as the Owners' Association for the SBCWID.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
The SBCVA shall present an annual report at the end of each year of operation to the Board of Supervisors pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2023 EXTRA SESSION CH 1, 2023 REGULAR SESSION CH. 890***
(ALL 2023 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not 334
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assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5 Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
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“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”
“Property” means real property situated within a district. 336
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36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit” [Effective January 1, 2023]
(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of propertybased districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
(b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3 Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
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A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities 338
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and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.

Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a propertybased district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be 339
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mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.

If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the 340
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district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3: Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
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(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of the resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36638. Assessment as government improvised fee on Civ C § 1770 transaction [Operative July 1, 2024] (a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024. 342
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CHAPTER 3.5 Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks–Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities 343
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The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by 344
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applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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APPENDIX 2 – ASSESSED BUSINESSES*
Business Name Site Address City State Zip
A Tribute To Grace 762 Main St Los Alamos Ca 93440
A Tribute To Grace Wine Company 9050 San Antonio Rd Orcutt Ca 93455 A Tribute To Grace Wine Company 490 Bell St #5 Los Alamos Ca 93440 Aether Wine Company 9050 San Antonio Rd Orcutt Ca 93455 Alapay Cellars 2115 S Blosser Rd; Ste 125-126 Santa Maria Ca 93458-7303 Alexander & Wayne 2922 Grand Ave Steh Los Olivos Ca 93441 Allan Hancock College Viticulture & Enology
Foundation
800 S College Dr; Rm 211 Bldg O Santa Maria Ca 93454-6399 Alma Rosa Winery Vineyards 7250 Santa Rosa Rd Buellton Ca 93427 Amada Cellars 490 Bell St Ste4 Los Alamos Ca 93440
Amber Rose 140 Industrial Way Buellton Ca 93427-9507
Amevive 2075 Vineyard View Ln Lompoc Ca 93436
Ampelos Cellars 4305 W Central Ave Lompoc Ca 93436
Amplify Wines 5428 Presquile Dr Santa Maria Ca 93455-5807 Andrew Murray Vineyards 2901 Grand Ave Los Olivos Ca 93441 Andrew Murray Vineyards 5095 Zaca Station Rd Los Olivos Ca 93441 Arcadian Winery 4457 Santa Rosa Rd Ste2 Lompoc Ca 93436 Area 5.1 Orgullo Wines 137 Anacapa St Ste B Santa Barbara Ca 93101-1849 Arthur Earl 2922 Grand Ave Los Olivos Ca 93441
Artiste Winery 2948 Grand Ave Steb Los Olivos Ca 93441
Ashkahn Wines 100 Los Padres Way Ste 7 Buellton Ca 93427-9580 Attic Salt Wine Company 2446 Alamo Pintado Rd Steb Los Olivos Ca 93441 Au Bon Climat Lie 4665 Santa Maria Mesa Rd Santa Maria Ca 93454 Au Bon Climat Lie 4665a Santa Maria Mesa Rd Santa Maria Ca 93454 Axel Wines 3676 Tivola St Unit2 Santa Ynez Ca 93460
Babcock Winery & Vineyards 5175 E Highway 246 Lompoc Ca 93436 Ballard Canyon Peak 5069 Presquile Dr Santa Maria Ca 93455-5807 Baltazar Family Wines 1251 W Laurel Ave Units 9 - 13 Lompoc Ca 93436-5157 Barbaire Wine Company 2369 Alamo Pintado Ave Los Olivos Ca 93441 Beckmen Vineyards 2670 Ontiveros Rd Los Olivos Ca 93441 Bedford Thompson Winery & Vin 448 Bell St Los Alamos Ca 93440 Bella Cavalli Farms & Winery 201 Industrial Way Ste D Buellton Ca 93427-9570 Bella Cavalli Farms & Winery 90 Easy St Buellton Ca 93427-9566 Bella Cavalli Farms & Winery 959 E Highway 246 Solvang Ca 93464 Bernat Vineyards And Winery 2650 Santa Ynez St Santa Ynez Ca 93460 Bien Nacido And Solomon Hills E 2963 Grand Ave Los Olivos Ca 93441 Blackjack Ranch 2205 Alamo Pintado Rd Solvang Ca 93463
Black Sheep Finds 1500 E Chestnut Ct; Ste f&G Lompoc Ca 93436 Blair Fox Cellars 2477 Alamo Pintado Rd Los Olivos Ca 93441 Bocce Ball Wine 90 Easy St Buellton Ca 93427-9566
Bonaccorsi Wine Company 4665 Santa Maria Mesa Rd # A Santa Maria Ca 93454-9638 346
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Bradley Family Winery 92 2nd St Ste C & D Buellton Ca 93427-9470 Brander Vineyard 2401 N Refugio Rd Santa Ynez Ca 93460
Brave & Maiden Estate 9050 San Antonio Rd Orcutt Ca 93455 Brave & Maiden Estate 645 N Refugio Rd Santa Ynez Ca 93460 Brewer Clifton 329 N F St Lompoc Ca 93436-6015
Brewer-Clifton 2367 Alamo Pintado Ave Los Olivos Ca 93441 Brick Barn Winery 795 W Highway 246 Buellton Ca 93427
Bridlewood 3555 Roblar Ave Santa Ynez Ca 93460
Brouillard Vineyards & Winery, William Hines &
Family, The Set
1501 E Chestnut Ave Lompoc Ca 93436-4901
Buscador Winery Llc 140 Industrial Way Buellton Ca 93427-9507 Buscador Winery Llc 84 Industrial Way Unit A Buellton Ca 93427-9567 Buttonwood Winery 1500 Alamo Pintado Rd Solvang Ca 93463 Buttonwood Winery And Vineyand 1500 Alamo Pintado Rd Solvang Ca 93463 Byron Vineyard & Winery 5250 Tepusquet Rd Santa Maria Ca 93454 C2 Cellars 9050 San Antonio Rd Orcutt Ca 93455
Ca Del Grevino 2933 Grand Ave Stea Los Olivos Ca 93441
Ca Del Grevino 2617 E Clark Ave Santa Maria Ca 93455
Cali Love Wine 92 2nd St Ste C & D Buellton Ca 93427-9470 Cali Love Wine 1651 Copenhagen Dr Solvang Ca 93463-3742 Calivence 2575 Park St Los Olivos Ca 93441
Cambria Winery / Nielson 5475 Chardonnay Ln Santa Maria Ca 93454 Camins 2 Dreams 1520 E Chestnut Ct Unit C-D Lompoc Ca 93436-4949 Carhartt Family Wines 2939 Grand Ave Los Olivos Ca 93441 Carhartt Vineyard & Winery 1541 Rancho Santa Ynez Rd Los Olivos Ca 93411 Carlson Wines 2330 Westgate Rd Ste 10 & 20 Santa Maria Ca 93455-1018 Carr Winery 414 N Salsipuedes Santa Barbara Ca 93103-3127 Carr Winery Inc 3563 Numancia St Santa Ynez Ca 93460
Carucci Wines 2923 Grand Ave Stea Los Olivos Ca 93441
Casa Cassara Winery & Vineyard 65 Los Padres Way Buellton Ca 93427-9577 Casa Cassara Winery & Vineyard 1607 Mission Dr Ste 111 & 112 Solvang Ca 93463-3651 Casa Dumetz 388 Bell St Los Alamos Ca 93440
Casita De Bravo 2401 N Refugio Rd Santa Ynez Ca 93460
Cebada Vineyard 4003 Forbidden Fruit Ln Lompoc Ca 93436 Central Coast Group Project The 53 Industrial Way Buellton Ca 93427-9565 Challen Winery 2330 Westgate Rd Ste 6 Santa Maria Ca 93455-1018 Chanin Wine Company 300 N 12th St Unit 1c & 2c Lompoc Ca 93436-9426 Chesterfield Cellars 5330 Debbie Rd Ste 200 Santa Barbara Ca 93111-4049 Chris Caruso Wines 2705 & 2717 Aviation Way Santa Maria Ca 93455-1505 Cinque Stelle Winery 9050 San Antonio Rd Orcutt Ca 93455 Civilization Wine Company 321 N D St Lompoc Ca 93436-6118 Clendenen Lindquist Vintners 4665a Santa Maria Mesa Rd Santa Maria Ca 93454 Clusterfreak Wine Vintners Lie 9050 San Antonio Rd Orcutt Ca 93455 Coastal Cru Wines Inc 65 Los Padres Way Unit 8 Buellton Ca 93427-9577 Colluvial Wines 2330 Westgate Rd Ste 9 Santa Maria Ca 93455-1018 347
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Colors Wine Cellars 2320 Thompson Way Ste F Santa Maria Ca 93455-1067 Conway Family Wines 35 & 70 Industrial Way Buellton Ca 93427-9565 Conway Family Wines 217 Stearns Wharf Ste G Santa Barbara Ca 93101-3582 Cool Hand Vineyards 2240 Santa Rosa Rd Lompoc Ca 93436
Coomber Family Ranch Wines 35 & 70 Industrial Way Buellton Ca 93427-9565 Coquelicot Estate Winery 330 Alisal Mesa Rd Solvang Ca 93463-2798 Cordon 1623 Mission Dr Ste I & J Solvang Ca 93463-2636
Costa De Oro Winery 1331 Nicholson Ave Santa Maria Ca 93454 Costa De Oro Winery 4665 Santa Maria Mesa Rd # A Santa Maria Ca 93454-9638 Cote Of Paint 55 Los Padres Way # 1 Buellton Ca 93427-9581 Cotiere Winery 2330 Westgate Rd Ste 9 Santa Maria Ca 93455-1018 Cottonwood Canyon 3940 Dominion Rd Santa Maria Ca 93454 Crawford Family Wines 92 2nd St Units G & H Buellton Ca 93427-9470 Crawford Family Wines 1661 Mission Dr Solvang Ca 93463-2632 Crosby Wine Co 84 Industrial Way Unit C Buellton Ca 93427-9567 Crosshatch Winery 1090 Edison St Ste103 Santa Ynez Ca 93460 Crosshatch Winery 1090 Edison St Ste104 Santa Ynez Ca 93460 Crown Point Vineyards 1733 Fletcher Way Santa Ynez Ca 93460 Crush It Wine Education 958 Cheltenham Rd Santa Barbara Ca 93105 D Alfonso Curran Wine Group 4457 Santa Rosa Rd Ste5 Lompoc Ca 93436 Dana V Wines 57 Industrial Way Buellton Ca 93427-9565
Dana V Wines 59 Industrial Way Buellton Ca 93427-9565
Dark Water Winery 1591 & 1595 E Chestnut Ave Ste B Lompoc Ca 93436 Dascomb Cellars 1637 E Laurel Ave Lompoc Ca 93436-4915
Dascomb Cellars 1623 Mission Dr Ste E & F Solvang Ca 93463 Dave Phinney Lie / Bloodlines 2121 Alisos Rd Santa Ynez Ca 93460 Demetria Vineyards & Winery 6701 Foxen Canyon Rd Santa Maria Ca 93454 Dierberg Star Lane Vineyards 1280 Drum Canyon Rd Lompoc Ca 93436 Dierberg Star Lane Vineyards 2121 Alisos Rd Santa Ynez Ca 93460 Disko Wines 5230 Tepusquet Rd Santa Maria Ca 93454
Domaine Dafoe 2901 Grand Ave Unite Los Olivos Ca 93441
Domaine De La Cote 1503 E Chestnut Ave Lompoc Ca 93436-4901 Domaine De La Cote 1712 Industrial Way Lompoc Ca 93436-4970 Donnachadh 2938 San Marcos Ave Ste 101 Los Olivos Ca 93441 Donnachadh Family Wines, Llc 5069 Presquile Dr Santa Maria Ca 93455-5807 Dovecote 9229 Alisos Canyon Rd Los Alamos Ca 93440
Dragonette Cellars 2445 Alamo Pintado Rd Los Olivos Ca 93441 Draughtsmen Aleworks 53 Santa Felicia Dr Goleta Ca 93117-2804 Draughtsmen Aleworks 1631 Mission Dr Solvang Ca 93463-2632 Dreamcote Wine Co 2933 San Marcos Ave Ste107 Los Olivos Ca 93441 Dreamcote Wine Co 2121 Alisos Rd Santa Ynez Ca 93460
Dreamcote, Spoke Cider 417 Commerce Ct Lompoc Ca 93436-2811 Eislynn Wines 6701 Foxen Canyon Rd Santa Maria Ca 93454 El Oso De Oro 321 N D St Lompoc Ca 93436-6118
El Vinero 130 N Broadway St Stea Orcutt Ca 93455
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Eleven Confessions 7007 Santa Rosa Rd Buellton Ca 93427 Entourage Wines 1251 W Laurel Ave Units 9-13 Lompoc Ca 93436-5157 Fallen Grape 140 Industrial Way Buellton Ca 93427-9507
Fates' Lieutenant Llc 100 Los Padres Way Ste 7 Buellton Ca 93427-9580 Feeley Wines 1603 Copenhagen Dr Ste 1 Solvang Ca 93463-2700 Feliz Noche 5249 Foxen Canyon Rd Santa Maria Ca 93454
Fennell Family Wine Company 5249 Foxen Canyon Rd Santa Maria Ca 93454 Fess Parker Winery 2974 Grand Ave Los Olivos Ca 93441
Fiddlehead Cellars 1597 E Chestnut Ave Lompoc Ca 93436
Final Girl 100 Los Padres Way Ste 7 Buellton Ca 93427-9580 Firestone Vineyard 5017 Zaca Station Rd Los Olivos Ca 93441 Flores Family Vineyards 140 Industrial Way Buellton Ca 93427-9507 Flying Goat Cellars 1251 W Laurel Ave Units 9-21 Lompoc Ca 93436 Flying Goat Cellars 1520 E Chestnut Ct Ste A Lompoc Ca 93436-4949 Folded Hills 9050 San Antonio Rd Orcutt Ca 93455
Folded Hills 2121 Alisos Rd Santa Ynez Ca 93460
Folded Hills Farmstead 2323 Old Coast Hwy Gaviota Ca 93117 Foley Estate Vineyard & Winery 6121 E Highway 246 Lompoc Ca 93436 Foley Estate Vineyard & Winery 1711 Alamo Pintado Rd Solvang Ca 93463-9712 Four Brothers Wine Co. 2935 Grand Ave Stea Los Olivos Ca 93441 Fox Wine Co 120 Santa Barbara St Santa Barbara Ca 93101-1819 Foxen Vineyard 7200 Foxen Canyon Rd Santa Maria Ca 93454 Frequency Wine Company 9110 Alisos Canyon Rd Los Alamos Ca 93440 Funk Zone Tasting Room 116 E Yanonali St Ste A Santa Barbara Ca 93101-1823 Future Perfect Wine 2933 San Marcos Ave Ste101 Los Olivos Ca 93441 Future Perfect Wine 5775 Genuine Risk Rd Santa Ynez Ca 93460 Future Perfect Wine 2847 Santa Barbara Ave Solvang Ca 93463 Gainey Vineyard 2901 Grand Ave Los Olivos Ca 93441
Gaviota Coast Wines Llc 236 N F St & 304 E Chestnut Ave Lompoc Ca 93436-6014 Gleason Family Vineyards 3010 Roblar Ave Santa Ynez Ca 93460 Gleason Family Vineyards Robla 2990 Grand Ave Steb Los Olivos Ca 93441 Gogi Wines 4305 W Central Ave Lompoc Ca 93436
Gra Wine 2330 Westgate Rd Ste 9 Santa Maria Ca 93455-1018 Grapevine Land Management 5250 Tepusquet Canyon Rd Santa Maria Ca 93454 Grassini Family Vineyards 5775 Genuine Risk Rd Santa Ynez Ca 93460 Grimms Bluff 2445 Alamo Pintado Ave Ste 102 Los Olivos Ca 93441 Grimms Bluff 5069 Presquile Dr Santa Maria Ca 93455-5807 Habit Wine Company 5069 Presquile Dr Santa Maria Ca 93455-5807 Happy Canyon Vineyards 5050 Happy Canyon Rd Santa Ynez Ca 93460 Hideaway 2933 Grand Ave Stef Los Olivos Ca 93441
Hilt Estate The 2240 Santa Rosa Rd Lompoc Ca 93436
Hitching Post Wines 420 E Highway 246 Buellton Ca 93427 Holus Bolus 2902 San Marcos Ave; Ste B Los Olivos Ca 93441 Imagine Wine 140 Industrial Way Buellton Ca 93427
Inception Wine 2643 Industrial Parkway Santa Maria Ca 93455 349
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J. Dirt LLC 55 Los Padres Way # 1 BUELLTON Ca 93427
Jaffurs Wine Cellars 819 E Montecito St Santa Barbara Ca 93103 Jalama Wines 321 N D ST LOMPOC Ca 93436
Jamie Slone Wines 4003 Forbidden Fruit Ln Lompoc Ca 93436 Jamie Slone Wines 4457 Santa Rosa Rd Ste 2 Lompoc Ca 93436-9516 Jamie Slone Wines 23 E De La Guerra St Santa Barbara Ca 93101-2217 Jonata 73 Thomas Rd Buellton Ca 93427
Juliet Wines Incorporated 2121 Alisos Rd Santa Ynez Ca 93460 Kaena Wine Company 800 E Highway 246 Hwy Buellton Ca 93427 Kaena Wine Company 2670 Ontiveros Rd Los Olivos Ca 93441 Kaena Wine Company 2890 Grand Ave Los Olivos Ca 93441
Kalawashaq Wine Cellars 313 N F St Lompoc Ca 93436-6015 Kalyra Winery 343 N Refugio Rd Santa Ynez Ca 93460
Ken Brown Wines 140 Industrial Way Buellton Ca 93427-9507 Ken Brown Wines 157 W Highway 246 Buellton Ca 93427
Kessler Haak Wines Kh Wines 1700 Gypsy Canyon Rd Lompoc Ca 93436 Kiani Preserve Cellars Llc 340 N G St Lompoc Ca 93436
Kimsey Vineyard Llc 90 Easy St Buellton Ca 93427-9566
Kings Carey 1210 Mission Dr Ste 103 Solvang Ca 93463-2978 Kings Carey Llc 1225-1239 W Laurel Ave Unit 1-8 Lompoc Ca 93436-5157 Koehler Winery 5360 Foxen Canyon Rd Santa Maria Ca 93454 Krh Specialty Wines Llc 35 & 70 Industrial Way Buellton Ca 93427-9565 Kunin Wines 74 Aero Camino Ste B Goleta Ca 93117-3152
Kunin Wines 831 Santa Barbara St Santa Barbara Ca 93101 La Lieff Wines 210 Gray Ave Santa Barbara Ca 93101
La Vallee 140 Industrial Way Buellton Ca 93427-9507
Labarge Vineyards & Winery 2380 Sweeney Rd Lompoc Ca 93436 Labyrinth Winery 2310 Westgate Rd Ste 7 & 8 Santa Maria Ca 93455-1004 Lafond Winery & Vineyard 6855 Santa Rosa Rd Buellton Ca 93427 Land Of Saints Wine Company L 9050 San Antonio Rd Orcutt Ca 93455 Larner Winery & Vineyards 2900 Grand Ave D Los Olivos Ca 93441 Latigo Ridge 5069 Presquile Dr Santa Maria Ca 93455-5807 Lavender Oak Vineyard And Or I 9450 Santa Rosa Rd Buellton Ca 93427 Le Crush Winery 7910 Cat Canyon Rd Los Alamos Ca 93440
Lepiane 1480 Count Fleet St Santa Ynez Ca 93460
Lieff Wines 65 Los Padres Way Buellton Ca 93427-9577
Lieu Dit 300 N 12th St Unit 4a Lompoc Ca 93436-9444
Lieu Dit 23 & 25 E Canon Perdido St Santa Barbara Ca 93101-2213 Lincourt Winery 1711 Alamo Pintado Rd Solvang Ca 93463-9712 Lions Peak 1659 Copenhagen Dr Ste A Solvang Ca 93463-3702 Liquid Farm 2445 Alamo Pintado Rd Los Olivos Ca 93441
Lo Fi Wines 101 Donald D Doyle Hwy
Lo Fi Wines 448 Bell St Steb Los Alamos Ca 93440
Lo Fi Wines 5230 Tepusquet Rd Santa Maria Ca 93454
Lompoc Wine Factory 321 N D St Lompoc Ca 93436-6118
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Long Creek Vineyards 2982 Grand Ave Los Olivos Ca 93441 Longoria Winery 415 E Chestnut Ave Lompoc Ca 93436-6007 Longoria Winery 732 State St Santa Barbara Ca 93101-3330 Loring Wine Company 1034 W Aviation Dr Lompoc Ca 93436-9777 Loubud Wines Lie 4003 Forbidden Fruit Ln Lompoc Ca 93436 Lucas & Lewellen Vineyards 1645 Copenhagen Dr Solvang Ca 93463 Lucas And Lewellen Vineyards 132 Easy St Unit A B C-2 & C-3 Buellton Ca 93427 Lucia's Wine Co., Inc. 2115 S Blosser Rd 103 Santa Maria Ca 93458-7306 Lumen 2310 Westgate Rd Ste 7 & 8 Santa Maria Ca 93455-1004 Luna Hart Wines Lie 3865 Sterrett Ave Santa Barbara Ca 93110 Luna Hart Wines Lie 2825 Tapadero Rd Solvang Ca 93463
Mad Lab Wines 65 Los Padres Way Unit 8 Buellton Ca 93427-9577 Madre Wine Co 65 Los Padres Way Unit 8 Buellton Ca 93427-9577 Mail Road Wines 90 Easy St Buellton Ca 93427-9566
Maison Thomas Llc 2121 Alisos Rd Santa Ynez Ca 93460
Mallea Food & Wine Llc 84 Industrial Way Unit C Buellton Ca 93427-9567 Mandolina Vineyards 132 Easy St Ut A2 Buellton Ca 93427 Mandolina Vineyards 1650 Copenhagen Dr Solvang Ca 93463 Margerum Wine Company 2446 Alamo Pintado Rd B Los Olivos Ca 93441 Martian Ranch & Vineyard 9110 Alisos Canyon Rd Los Alamos Ca 93440 Mayfield Moore Inc 4457 Santa Rosa Rd Ste2 Lompoc Ca 93436 Mcclain Cellars 140 Industrial Way Buellton Ca 93427-9507 Mcclain Cellars 281 Pamela Way Ste 104-107 Buellton Ca 93427-9594 Mcclain Cellars 2360 Thompson Way Ste F & G Santa Maria Ca 93455-1095 Mcclain Cellars 1623 Mission Dr Ste B C & D Solvang Ca 93463-2636 Mckinney Family Vineyards 86 Industrial Way Unit A B & C Buellton Ca 93427-9567 Melville Winery 5185 E Highway 246 #246 Lompoc Ca 93436 Michael Caitlin Wines 3940 Dominion Rd Santa Maria Ca 93454 Miller Family Wine Company 35 State St Ste B Santa Barbara Ca 93101-3537 Miller Family Wine Company 2705 & 2717 Aviation Way Santa Maria Ca 93455-1505 Miller Family Wine Company 2717 Aviation Way Santa Maria Ca 93455-1506 Miralaguna Lie 5249 Foxen Canyon Rd Santa Maria Ca 93454 Montemar Wines 1501 E Chestnut Ct Stes B & E Lompoc Ca 93436-4953 Municipal Winemakers 22 Anacapa St Santa Barbara Ca 93101-1879 Municipal Winemakers 2643 Industrial Pkwy Santa Maria Ca 93455-1536 Native 9 6525 Dominion Rd Santa Maria Ca 93454
Natural Merchants 2121 Alisos Rd Santa Ynez Ca 93460
New Vineland Llc 1501 E Chestnut Ave Lompoc Ca 93436-4901 Nid Tisse Wines 2075 Vineyard View Ln Lompoc Ca 93436
Night Lizard Brewing Company 607 State St Santa Barbara Ca 93101-3301 No Limit Wines Lie 9660 Foxen Canyon Rd Santa Maria Ca 93454 Notary Public Wines 5069 Presquile Dr Santa Maria Ca 93455-5807 Oaktree Imports 35 & 70 Industrial Way Buellton Ca 93427-9565 One Barrel Wines 2330 Westgate Rd Ste 9 Santa Maria Ca 93455-1018 Orlaigh Wines Llc 406 E Haley St Ut 1 Santa Barbara Ca 93101-1714 351
SBCWID Management District Plan 32
November 26, 2024
Ox Wine Co 1501 E Chestnut Ct Ste B Lompoc Ca 93436-4953 Paisean 1575 Edison St Santa Ynez Ca 93460
Pali Wine Co 205 Anacapa St Santa Barbara Ca 93101-1805 Pali Wine Co 2625 Skyway Dr Ste A Santa Maria Ca 93455-1405 Pali Wine Company 1036 W Aviation Dr Lompoc Ca 93436-9777 Pali Wine Company 1501 E Chestnut Ct Ste C Lompoc Ca 93436-4953 Paradis Springs Winery 210 State St Santa Barbara Ca 93101 Paradise Springs Winery 57 Industrial Way Buellton Ca 93427-9565 Paradise Springs Winery 59 Industrial Way Buellton Ca 93427-9565 Parker Parker 5070 Presquile Dr Santa Maria Ca 93455-5807 Paul Lato Wines 5250 Tepusquet Canyon Rd Santa Maria Ca 93454 Pch Street 90 Easy St Buellton Ca 93427-9566
Peake Ranch 7290 Santa Rosa Rd Buellton Ca 93427
Peake Ranch 2445 Alamo Pintado Ave Stet Los Olivos Ca 93441 Pence Ranch 1909 W Highway 246 Buellton Ca 93427-9492
Pence Ranch 1704 Industrial Wy Lompoc Ca 93436-4968
Pence Ranch 1708 Industrial Way Units D & E Lompoc Ca 93436-4969 Penville Projects Lie 5230 Tepusquet Rd Santa Maria Ca 93454 Perluca Wines 100 Los Padres Way Ste 4 Buellton Ca 93427-9580 Petros Winery 3360 Foxen Canyon Rd Los Olivos Ca 93441
Piazza Family Wines Lie 2825 Tapadero Rd Solvang Ca 93463 Pigeon 1034 W Aviation Dr Lompoc Ca 93436-9777
Point & Line Wines 2705 & 2717 Aviation Way Santa Maria Ca 93455-1505 Popes New Castle The 140 Industrial Way Buellton Ca 93427-9507 Potek 406 E Haley St Ut 1 Santa Barbara Ca 93101-1714
Presqu Lie Winery 5391 Presquile Dr Santa Maria Ca 93455-5807 Prodigal Wines 1251 W Laurel Ave Units 9 - 13 Lompoc Ca 93436-5157 R Winery Operation Lie 2075 Vineyard View Ln Lompoc Ca 93436 Racines 300 N 12th St Unit 1a & 2a Lompoc Ca 93436-9426 Rancho Boa Vista 57 Industrial Way Buellton Ca 93427-9565 Rancho Boa Vista 6485 Calle Real Ste E & F Goleta Ca 93117-1539 Rancho Los Olivos Lie 3360 Foxen Canyon Rd Los Olivos Ca 93441 Rancho Sisquoc Winery 6600 Foxen Canyon Rd Santa Maria Ca 93454 Reunion Wine 6701 Foxen Canyon Rd Santa Maria Ca 93454
Riccavalle 338 Toro Canyon Rd Carpinteria Ca 93013
Rideau Cellars 1562 Alamo Pintado Rd Solvang Ca 93463
Rincon Mountain Winery Inc 4187 Carpinteria Ave Ste 1 - 2 Carpinteria Ca 93013-3300 Rivahil 2901 Grand Ave Stec Los Olivos Ca 93441
Rivahil Winery 90 Easy St Buellton Ca 93427-9566
Riverbench 137 Anacapa St Ste C Santa Barbara Ca 93101-1848 Riverbench Vineyards & Winery 6020 Foxen Canyon Rd Santa Maria Ca 93454 Riviera Wines 57 Industrial Way Buellton Ca 93427-9565
Riviera Wines 59 Industrial Way Buellton Ca 93427-9565
Roark Wine Company 84 Industrial Way Unit C Buellton Ca 93427-9567 Robert Lieff Wines 57 Industrial Way Buellton Ca 93427-9565 352
SBCWID Management District Plan 33
November 26, 2024
Robert Lieff Wines 59 Industrial Way Buellton Ca 93427-9565 Rooted Vine Cellars 55 Los Padres Way # 1 Buellton Ca 93427-9581 Rosenson Vantonder Wine Creal 2884 Grand Ave Los Olivos Ca 93455 Rosenson Wine Creations 330 Alisal Mesa Rd Solvang Ca 93463-2798 Rosenson Wine Creations Inc 5230 Tepusquet Rd Santa Maria Ca 93454 Rosenthal Malibu Estate 5249 Foxen Canyon Rd Santa Maria Ca 93454 Runway Vineyards, Llc 2705 & 2717 Aviation Way Santa Maria Ca 93455-1505 Rusack Vineyards 1819 Ballard Canyon Rd Solvang Ca 93463 Rustik Elements Lie 125 N Refugio Rd Santa Ynez Ca 93460 Ryan Santos Wines Llc 2320 Thompson Way Ste F Santa Maria Ca 93455-1067 Rzn Wines 1225-1239 W Laurel Ave Unit 1-8 Lompoc Ca 93436-5157 Saarloos Estate Vineyards 2971 Grand Ave Los Olivos Ca 93441 Saarloos Estate Vineyards 5249 Foxen Canyon Rd Santa Maria Ca 93454 Samsara 6485 Calle Real Ste E & F Goleta Ca 93117-1539
Samsara Wine Co 2446 Alamo Pintado Ave Ste A Los Olivos Ca 93441 San Se Wines 5071 Presquile Dr Santa Maria Ca 93455-5807 Sandhi Wines 1503 E Chestnut Ave Lompoc Ca 93436-4901
Sandhi Wines 1700 Industrial Way Unit A Lompoc Ca 93436-4947 Sandoval Mergenov Wines Lie 125 N Refugio Rd Santa Ynez Ca 93460 Sandoval Ranch & Vineyard 1719 Calzada Ave Santa Ynez Ca 93460 Sanford Winery 5010 Santa Rosa Rd Lompoc Ca 93436
Sanger Family Of Wines The 281 Pamela Way Ste 104-107 Buellton Ca 93427-9594 Sanger Family Of Wines The 1582 & 1584 Mission Dr Solvang Ca 93463 Sanguis 8 Ashley Ave Santa Barbara Ca 93103-3308
Santa Barbara Winery 28 Anacapa St Ste A Santa Barbara Ca 93101-1882 Sapien Wines 90 Easy St Buellton Ca 93427-9566
Schetter Malibu Vineyard 35 & 70 Industrial Way Buellton Ca 93427-9565 Sea Creatures Wine 5249 Foxen Canyon Rd Santa Maria Ca 93454 Sea Smoke 1604 N O St Lompoc Ca 93436-3420
Section Wines 65 Los Padres Way Buellton Ca 93427-9577
Sevtap Winery 308 N 9th St Ste A & B Lompoc Ca 93436-4945 Sevtap Winery 38 El Paseo Santa Barbara Ca 93101
Sevtap Winery 473 Atterdag Rd Unit 102 Solvang Ca 93463-3744 Shokrian Winery, Llc 7910 Cat Canyon Rd Los Alamos Ca 93440 Silver Wines Llc 724 Reddick St Unit A & B Santa Barbara Ca 93103 Silver Wines Llc 813 Anacapa St Ste 31 Santa Barbara Ca 93101-2289 Skeynna Wines 12 Helena Ave Santa Barbara Ca 93101
Skyenna Wines 90 Easy St Buellton Ca 93427-9566
Slay Estate & Vineyard 6635 E Highway 246 Lompoc Ca 93436 Slouch Hat Wines 2121 Alisos Rd Santa Ynez Ca 93460
So Far Out Wine Company 9110 Alisos Canyon Rd Los Alamos Ca 93440 Solminer 2890 Grand Ave Steb & C Los Olivos Ca 93441
Solminer Wine Company 2650 Easton Los Olivos Ca 93441
Somerset Vineyards Sta Rita Hill 4650 Sweeney Rd Lompoc Ca 93436 Sonja Magdevski 380 Bell St Los Alamos Ca 93440
353
SBCWID Management District Plan 34
November 26, 2024
Sort This Out Cellars 35 & 70 Industrial Way Buellton Ca 93427-9565 Spear Vineyards & Winery 6700 E Highway 246 Lompoc Ca 93436 St Avalo Inc 2963 Grand Ave Ste B Los Olivos Ca 93441
St. Avalo, Inc. 5230 Tepusquet Rd Santa Maria Ca 93454
Standing Sun Wines 2990 Grand Ave Stea Los Olivos Ca 93441 Stars & Dust 100 Los Padres Way Ste 3 Buellton Ca 93427-9580 Stephen C Swinchatt 3865 Sterrett Ave Santa Barbara Ca 93110 Stolpman Vineyards 2434 Alamo Pintado Ave Los Olivos Ca 93441 Stone Pine Estate 2705 & 2717 Aviation Way Santa Maria Ca 93455-1505 Storm Wines 2948 San Marcos Ave Steloi Los Olivos Ca 93441 Storm Wines 5072 Presquile Dr Santa Maria Ca 93455-5807 Story Of Soil 2362 Alamo Pintado Rd Los Olivos Ca 93441 Story Of Soil 2928 San Marcos Ave Ste102 Los Olivos Ca 93441 Strange Family Vineyards 2329 Jonata St Los Olivos Ca 93441 Summerland Winery 2330 Lillie Ave Summerland Ca 93067
Sunstone Vineyards & Winery 125 N Refugio Rd Santa Ynez Ca 93460 Sweetzer Cellars 1637 E Laurel Ave Lompoc Ca 93436-4915 Sweetzer Cellars 308 N 9th St Ste C Lompoc Ca 93436-4945 Swissco 4665 Santa Maria Mesa Rd # A Santa Maria Ca 93454-9638 Tatomer, Inc. 2705 & 2717 Aviation Way Santa Maria Ca 93455-1505 Temperance Cellars 1637 E Laurel Ave Lompoc Ca 93436-4915 Tensley Wine 9110 Alisos Canyon Rd Los Alamos Ca 93440
Tercero Wines 2445 Alamo Pintado Ave #10 Los Olivos Ca 93441 Terre Et Sang Lie 4457 Santa Rosa Rd Ste2 Lompoc Ca 93436 Terre Et Sang Lie 2982 Grand Ave Los Olivos Ca 93441
Terre Et Sang Lie 2944 Gaviota St Solvang Ca 93463
Tessa Marie Wines & Triune 2643 Industrial Pkwy Santa Maria Ca 93455-1536 Thorne Wine Thorne Cellars 35 & 70 Industrial Way Buellton Ca 93427-9565 Tierra Y Vino 140 Industrial Way Buellton Ca 93427-9507 Tin City Cider 2360 Alamo Pintado Rd Los Olivos Ca 93441 Tomi Cellars 140 Industrial Way Buellton Ca 93427-9507
Tommy Town Thoroughbreds 5699 Happy Canyon Rd Santa Ynez Ca 93460 Torettis Family Vineyard 2920 Grand Ave Unite Los Olivos Ca 93441 Torettis Family Vineyard 9050 San Antonio Rd Orcutt Ca 93455 Toussaint Cellars 92 2nd St Ste C & D Buellton Ca 93427-9470 Transcendence 300 N 12th St Ste 1g Lompoc Ca 93436-9442 Transcendence Winery 300 N G St Ste C Lompoc Ca 93436-6020 Tres Hermanas Vineyard & Wine 346 Bell St Los Alamos Ca 93440 Tres Hermanas Vineyard & Wine 9660 Foxen Canyon Rd Santa Maria Ca 93454 Trical 1251 W Laurel Ave Units 9 - 13 Lompoc Ca 93436-5157 Tripp Wines 321 N D St Lompoc Ca 93436-6118
Trippers & Askers 406 E Haley St Ut 1 Santa Barbara Ca 93101-1714 True Believer Lie Santa Maria Mesa Rd Santa Maria Ca 93454 Turiya Wines 321 N D St Lompoc Ca 93436-6118
Two Wolves Wine 1480 Count Fleet St Santa Ynez Ca 93460 354
SBCWID Management District Plan 35
November 26, 2024
Tyler 23 & 25 E Canon Perdido St Santa Barbara Ca 93101-2213 Tyler Winery 300n 12th St Unit 4a & 4b Lompoc Ca 93436
Valley Project The 74 Aero Camino Ste B Goleta Ca 93117-3152 Valley To The Sea 38 W Victoria St Ste 105 Santa Barbara Ca 93101-3166 Valley To The Sea Winery 6485 Calle Real Ste E & F Goleta Ca 93117-1539 Valmur 5428 Presquile Dr Santa Maria Ca 93455-5812
Vega Vineyard And Farm 9496 Santa Rosa Rd Buellton Ca 93427 Vega Vineyard And Farm 3555 Roblar Ave Santa Ynez Ca 93460 Vega Vineyard Farm 3555 Roblar Ave Santa Ynez Ca 93460
Velvet Bee Wine 4457 Santa Rosa Rd Bldg2 Lompoc Ca 93436 Vignerons 4665 Santa Maria Mesa Rd Santa Maria Ca 93454 Village Pop Wine 321 N D St Lompoc Ca 93436-6118
Vincent Vineyards 2370 N Refugio Rd Santa Ynez Ca 93460 Voyz'n Wines 2330 Westgate Rd Ste 10 & 20 Santa Maria Ca 93455-1018 Wathen Wines, Barieau Wines 7600 Foxen Canyon Rd Santa Maria Ca 93454-9170 Waylan Wine Co 2963 Grand Ave Los Olivos Ca 93441
Waylan Wine Co 5249 Foxen Canyon Rd Santa Maria Ca 93454 Wedell Cellars 2705 & 2717 Aviation Way Santa Maria Ca 93455-1505 Wenzlau Vineyard 300 N 12th St Unit 4a Lompoc Ca 93436-9444 Wenzlau Vineyard 724 Union St Santa Barbara Ca 93103-3328 Whitcraft Winery 36 S Calle Cesar Chavez A Santa Barbara Ca 93103 Williamson Family Wines 1980 Paquita Dr Carpinteria Ca 93103 Windrun Wine Co. 140 Industrial Way Buellton Ca 93427-9507 Windrun Wine Co. 1595 E Chestnut Ave Ste C Lompoc Ca 93436-4942 Wines By Alisa Jacobson 3555 Roblar Ave Unit B Santa Ynez Ca 93460 World Source Supply 2045 N Refugio Rd Santa Ynez Ca 93460 Wylde Works 609 State St Santa Barbara Ca 93101-3301
Yata Eagle Wines 2121 Alisos Rd Santa Ynez Ca 93460
Zaca Mesa Winery 6905 Foxen Canyon Rd Santa Maria Ca 93454 Zarif Companies 300 N G St Ste C Lompoc Ca 93436-6020
Zotovich Vineyards And Winery 300 N 12th St Unit 1d Lompoc Ca 93436-9442 Zotovich Vineyards And Winery 300 N G St Ste C Lompoc Ca 93436-6020 *The list was developed with the most reliable information provided; however, the list may contain discrepancies. This list shall include any future to-be opened businesses. Any business that may have been missed in this list, but is still within the boundaries of the SBCWID, shall also be subject to assessment.
355

SANTA BARBARA COUNTY

WINERY IMPROVEMENT DISTRICT
JANUARY 13, 2025
356
WHAT IS A WID?
Wine Improvement Districts (WIDs) provide a stable funding source that allows owners to work together through a winery association to:• Improve business activity through marketing and promotional efforts
• Community, industry, and government
education
• Build the region’s high-quality wine reputation• Attract new visitors to the wineries There are currently (3) WIDs in CA, with other wine regions in the formation process. 357
WHY THE WINE BID FOR SBC?
It is predictable, stable funding. We have seen how funding helps us:

The Vintners Association received almost $800,000 in marketing funding from 2020-2023Saw 48.8% growth in retail sales from 2018-2022Temecula: 18% increase in visitation from Sept 2022 – Sept 2023 358

THE ASSESSMENT
1% assessment on all Direct-to-Consumer RETAIL sales in the state of California (anything that incurs sales tax)Including: • Tasting Room Sales, Wine Club, Events, Food, Merch, etc.

Not Including:
• Wholesale, Out-of-State Sales
359

WHAT OUR MONEY WILL BE SPENT ON
• Marketing / Brand Awareness / PR• Events• Community Engagement • Government Education• Industry Education• Other areas of improvement TBD (AVA support, infrastructure, philanthropy, etc.)
• …funding must be spent on programs and activities
that provide a specific benefit to the payor!
360

HOW THE MONEY GETS REMITTED
A third-party firm, HdL, will collect the assessment
from the winery businesses and remit funds to the Santa Barbara Vintners Association, who will implement the programs in accordance with the Management District Plan. 361

FORMATION TIMELINE
District begins collections: April 1, 2025
Public Hearing + Resolution of Formation: February 11, 2025 BOS Public Meeting – January 14, 2025
Resolution Granting Consent from all Jurisdictions: January – Feb 11, 2025 Notice of Public Meeting – December 2024 & Public Hearing – January 14, 2025 BOS Resolution of Intention + Resolution Requesting Consent: December 17, 2024 Petition Drive – 50% support from Winery Businesses: November - December 2024 Winery Businesses & County Review and Approval of MDP: June – October 2024 Draft Management District Plan (MDP): May 2024
Outreach & Consensus Building: January – August 2024
362
QUESTIONS?
363
THANK YOU!
Alison LaslettCEO, Santa Barbara Vintners Cell: 310.463.0262E-mail: [email protected] ReedSenior Project Manager, CivitasE-Mail: [email protected] 364
From: Keith Saarloos
To: Public City Council Group
Subject: Urgent: Support the Wine BID – Vote YES on January 27th Date: Wednesday, January 15, 2025 11:53:04 AM
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Dear Mayor and City Council Members of Solvang,
I am writing to you as a passionate advocate for our wine community and as a representative of the Santa Barbara Vintners Association, to strongly urge you to vote in favor of Solvang’s participation in the Wine Business Improvement District (BID) on January 27th. This initiative represents a transformative opportunity for Solvang to strengthen its economy, secure its future, and solidify its position as a leader in the Santa Barbara wine region.

The support for the Wine BID has been overwhelming. The Santa Barbara County Board of Supervisors has unanimously voted 5-0 in favor of this initiative—twice—with not a single voice raised in opposition. Additionally, more than 60% of vintners across Santa Barbara County have officially supported the BID, creating a clear and undeniable mandate from the wine industry.

Why Solvang Stands to Benefit the Most
Solvang has the second most tasting rooms in the Santa Ynez Valley, and this is significant.

But what truly sets Solvang apart is its abundance of hotels, restaurants, and shops— more than any other city in the region. These complementary businesses mean Solvang will see the greatest economic impact from the Wine BID.

Every dollar spent at a tasting room doesn’t stop there. It generates $9 in additional economic activity throughout the community. Visitors who come to taste wine will stay in Solvang’s hotels, dine in its restaurants, and shop in its stores. When wine tourism grows, Solvang thrives.

The Flexibility of the 1% Fee
One of the BID’s strengths is the flexibility it provides participating wineries. The 1% fee can be approached in multiple ways:

It can be a line item on a receipt, making it clear to customers.

It can be absorbed into the cost of goods sold, seamlessly integrated into pricing.

This flexibility allows wineries to choose what works best for their business model. Even with this 1% fee, the cost of goods in our region remains well below what consumers are accustomed to paying in Southern California markets. And most importantly, we’ve done our 365
job—we got those customers through the doors and purchasing.

Proven Results and Exponential Potential
This is not a theory—it’s a proven strategy. With just two small grants in the past, the wine industry increased sales by $50 million. The Wine BID, as a much larger and sustained effort, promises exponentially greater benefits. The wine industry already generates $1.7 billion annually in economic impact for Santa Barbara County. With the BID, this figure will grow, bringing even more revenue directly into Solvang’s economy.

The Wine BID is not a tax. It’s entirely self-funded through the 1% fee, meaning there is no financial burden on the city or its residents. Yet the rewards will ripple throughout every corner of Solvang’s economy, benefiting hotels, restaurants, shops, and local businesses.

The Catastrophic Costs of Opting Out
If Solvang chooses not to participate in the Wine BID, the consequences will be severe and farreaching:

1. Exclusion from Marketing Efforts
By law, any city that opts out of the Wine BID will be mandated to be excluded from all marketing and promotional efforts funded by the BID. This means:

Solvang will not appear in campaigns designed to attract visitors to the Santa Barbara wine region.

Solvang will not be represented in online, print, or media materials promoting the area as a premier destination.

Solvang will effectively be erased from the regional map for wine tourism.

This exclusion would hurt not only the wineries but every business in Solvang that relies on tourism to survive.

2. Lost Tourism Revenue
Without the BID driving visitors to Solvang:

Hotels will see a decline in bookings as wine tourists choose other destinations.

Restaurants will lose valuable business from high-value customers.

Retail shops will see diminished foot traffic, impacting their bottom line.

3. Loss of Competitive Standing
Competing regions like Paso Robles are already pursuing their own Wine BID. If Solvang opts out, it will fall behind not only Paso Robles but also neighboring cities in the Santa Barbara wine region that are participating in the BID. Visitors will follow the marketing dollars, bypassing Solvang for destinations that are heavily promoted.

4. Economic Decline for Solvang
The BID is an investment in Solvang’s future. Opting out would send the message that the city is unwilling to support its own economic success. This would result in fewer jobs, less revenue for businesses, and reduced tax income for city services. 366
The Time to Act is Now
The Wine BID represents years of collaboration to unite the Santa Barbara wine region. By voting to participate, Solvang secures its place as a leader in the region, ensuring that Southern California tourists see it as a must-visit destination.

Please vote to support the wine community and the thousands of people who rely on this industry. A vote against the BID would jeopardize Solvang’s economic future and risk leaving the city behind while others move forward. Let’s make the smart choice for Solvang’s success.

Thank you for your time and thoughtful consideration of this critical issue.

Sincerely,
Keith Saarloos
Board Member
Santa Barbara Vintners Association
*Typos are part of my charm…
Keith Saarloos Overlord
Saarloos and sons
cell 562.331.1193 | TR 805.688.1200
[email protected]
2971 grand ave. los olivos california
367