Agenda packet — Arroyo Grande City Council, May 23, 2023 (part 4 of 4)

Item 12.a.

City Council
Review Preliminary FY 2023-25 Biennial Operating Budget May 23, 2023

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Table 2 - General Fund Budget & Available Fund Balance in thousands Local Sales Tax Fund
The General Fund is the primary operating fund of the City, which accounts for resources and services traditionally associated with government. The General Fund provides administrative, financial, police protection, community development, public works, fire, and recreation services to the community and other funds. The General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund.

The City has historically reported on the General Fund separately from the Local Sales Tax Fund, although the City’s auditors traditionally combine this information in the Annual Comprehensive Financial Report (ACFR) as shown above in table 1. The Local Sales Tax Fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006. Measure O-06 included advisory measures when passed providing direction on the uses to which the funding should be allocated. To ensure accountability, the measure included a provision requiring the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds. To aid in the collection and reporting of this information, the City has accounted for this fund in a separate account. 2023-24 2024-25
2021-22 ADOPTED PROJECTED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $8,272 $7,999 $10,822 $9,175 $8,589 Revenues 18,404 17,888 19,092 18,544 19,000
Transfers In 2,993 3,013 3,013 3,114 3,185
Total Revenues 21,397 20,901 22,105 21,658 22,185
Salaries and Benefits 10,851 13,804 14,164 12,194 12,437 Services and Supplies 6,455 7,199 7,351 9,385 9,725
Debt Service 129 286 286 310 294
Capital Outlay 13 454 359 240 150
Transfers Out 1,399 1,536 1,591 115 115
Total Expenditures 18,847 23,279 23,752 22,244 22,721
Total Operating Incr/(Decr) 2,550 (2,378) (1,647) (586) (536) Available Fund Balance $10,822 $5,621 $9,175 $8,589 $8,053 Reserve % 57.4% 24.1% 38.6% 38.6% 35.4%
$ Above Reserve Policy $7,054 $965 $4,426 $4,143 $3,511 2022-23

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City Council
Review Preliminary FY 2023-25 Biennial Operating Budget May 23, 2023

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For the purpose of providing Council and the community the full picture of the City revenues, expenditures, and ending fund balance, staff has combined these two funds for information purposes into a Consolidated General Fund picture in this report as shown in Table 3.

Table 3 – FY 2023-25 Consolidated General Fund Budget & Available Fund Balance in thousands
The projected fund balance for the Consolidated General Fund at the end of FY 2024-25 is $9,802,554 or 35.9%. This leaves approximately $3,620,000 in funds available that could be allocated from fund balance and still achieve the 20% reserve goal. A discussion about appropriation of Excess Available General Fund Balance has been included later in this report.

Proposed Budget
The FY 2023-24 and FY 2024-25 proposed budgets present a balanced budget, with excess revenues and fund balance sufficient to cover recommended work plan and capital project budget expenditures. The FY 2023-24 proposed budget includes a total of $24.6 million in revenues and $24.9 million in operating and capital budget for a net of $373,000 more expenditures than revenues. The operating budget is balanced, with a $6.9 million net operating surplus. The expenditures that exceed revenues are for onetime projects that the City has been anticipating. Fund balances accumulated over time offset the additional expenditures.

General General
Fund Fund
Beginning Fund Balance $9,175 $3,093 $12,268 $8,589 $3,306 $11,895 Revenues:

Revenues 18,544 2,962 21,506 19,000 3,033 22,033
Transfers In 3,114 - 3,114 3,185 - 3,185
Total Revenues 21,658 2,962 24,620 22,185 3,033 25,218
Expenditures:

Salaries and Benefits 12,194 - 12,194 12,437 - 12,437
Services and Supplies 9,385 1,042 10,427 9,725 1,087 10,812 Debt Service 310 - 310 294 - 294
Capital Outlay 240 - 240 150 - 150
Transfers Out 115 1,707 1,822 115 3,505 3,620
Total Expenditures 22,244 2,749 24,993 22,721 4,592 27,313 Total Operating Incr/(Decr) (586) 213 (373) (536) (1,559) (2,095) Available Fund Balance $8,589 $3,306 $11,895 $8,053 $1,747 $9,800 Reserve % 38.6% 120.3% 47.6% 35.5% 38.1% 35.9%
$ Above Reserve Policy 4,143 2,756 6,899 3,511 829 4,340 Funds Available to Allocate 3,450 2,295 5,745 2,930 690 3,620 FY 2023-24 FY 2024-25
Local
Sales
Consolidated
Total
Local
Sales
Consolidated
Total

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Review Preliminary FY 2023-25 Biennial Operating Budget May 23, 2023

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The FY 2024-25 proposed budget includes a total of $25.2 million in revenues and $27.3 million in operating and capital expenditures for a net of $2 million more expenditures than revenues. The operating budget is balanced, with a $4.3 million net operating surplus.

Consolidated General Fund Revenues
As shown in the chart below, Sales and Property Taxes comprise the largest source of revenue in the General Fund, together accounting for approximately 66% of revenue in that fund. Given this dependence on just two revenue sources, fluctuations in the amount of taxes received can have profound impacts on the City’s ability to provide services.

Fortunately, as long as the real estate market stays reasonably strong, property taxes are a relatively stable revenue source.

Chart 1 – FY 2023-24 Consolidated General Fund Revenues - $24.6 million total Overall, General Fund tax revenues have been trending upward over the past several years and are expected to increase in both years of the Biennial Budget. Based on the latest information provided by the County Auditor-Controller’s Office, Property taxes are expected to rebound 3.3% from FY2023-24 to 2024-25 and another 3.5% the following year. This is the result of an increase in the assessed valuation of properties in Arroyo Grande and a housing market that has remained robust throughout the past year.

Sales tax receipts have remained consistent throughout the past year. As discussed during the Fiscal Outlook presentation in March, the City’s sales tax consultant (HdL) projected a reduction in sales tax revenues of 1.1% in FY 2023-24 due to an anticipated minor economic slowdown. These projections reflect expected declines in categories like automobiles and transportation, fuel and service stations, and general consumer goods.

The lower projections in these categories are the result of lower expected consumer

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demand in the short-term and, in the case of fuel, lower prices at the pump. This budget is projecting an increase in sales tax revenues of 2.8% in FY 2024-25, as the economy is only anticipating a minor slowdown.

Chart 2 – Consolidated General Fund Tax Revenues $24.6 million Consolidated General Fund Expenditures
The following two charts show the proposed $25 million Consolidated General Fund expenditure budget for FY 2023-24, both in terms of the relative size of each department as well as the total dollars budgeted for each department. As the charts show, the Police Department is the City’s largest function, with 27% of the budget. Fire services for the FCFA will receive 15% of the Consolidated General Fund and Local Sales Tax Fund budget. Public Works and Community Development will receive 13% and 7% of FY 2023- 24 budget resources, respectively. The “Non-Departmental” category represents 14% of the General Fund budget and includes items that affect all departments, such as the annual payment on the City’s Unfunded Actuarial Liability (UAL), property and general liability insurance, and transfers to the Street and Capital Improvement Project funds.

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Chart 3 – FY 2023-24 Consolidated General Fund Expenditures by Department $25 million
Chart 4 – FY 2023-24 Consolidated General Fund Expenditures by Department $25 million
The tables in the following pages identify specific budget request items in the FY 2023- 24 Biennial Budget in the areas of staffing, vehicle and equipment, and other budget items.

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Proposed Staffing Changes
As an operational procedure, staff consistently evaluates staff functions and departmental efficiencies. After assessing the workflows of the Engineering section of the Community Development Department, several interrelated and interdependent project responsibilities between Engineering and Public Works were identified. Capital Improvement Projects, like the City’s annual Payment Management and Concrete Repairs Programs, the Bridge Street Bridge and Traffic Way Bridge Replacement Projects, and many other smaller projects like subdivisions and map checking, encroachment permits, red curbing, street signs etc. are sequentially reviewed by Engineering and Public Works and require extensive communication and coordination. To allow these project design, management, review, and inspection processes to be more efficient and comprehensive, staff is recommending that the Engineering Division become part of the Public Works Department. In addition, regular project and staff communication/coordination meetings will be set up along with providing a cohesive project direction and decision-making process that includes appropriate staff. This recommended interdepartmental change is intended to ultimately provide more early, predictable, accurate, and timely service to applicants and the public. The preliminary budget presented in this item reflects the proposed reallocation of Engineering Division staff from Community Development to Public Works.

The preliminary budget also includes a proposal to upgrade a part-time Police Cadet to a full-time Police Service Technician (PST) to allow the Police Department to expand the service to the community. First, this would create stability in the position for recruitment and turnover. The current model of part-time Police Cadets has resulted in an average longevity of about four months per Cadet. The proposed full-time PST position would include the current Cadet duties, such as house checks, parking enforcement, courier, etc., and would enhance the service to the community by responding to nonemergent calls for service (i.e., noninjury traffic collisions, property crime reports, vehicle tows, special events, drone operations, and phone reports). This would potentially reduce the response time of Police Officers to emergency in-progress calls that often involve a threat to life. Additionally, the PST will also operate as a backup Property & Evidence Technician and assist investigative staff with crime scene investigation and processing (dusting for fingerprints, taking photos, logging evidence, etc.). PSTs are common positions in neighboring law enforcement agencies. For example, Grover Beach and Pismo Beach both employ 2 full-time and one part-time and 2 part-time PSTs, respectively.

Changes are also proposed for staffing in the Recreation Services Department. In 2022, the State’s Early Learning Opportunities Program provided additional funding and requirements for the Lucia Mar Unified School District to increase services for both before and after-school as well as holidays through agreements with non-profit providers such as the YMCA, as well as the City. These service need changes resulted in the need for the City to transition the services that the City had provided through its Children in Motion program at two school sites (Branch Elementary and Ocean View Elementary) to a nonPage 526 of 569 Item 12.a.

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profit provider, the YMCA. The transition was planned to occur over the course of one school year, with new and increased services provided by the YMCA at Branch Elementary beginning in the 2022-23 school year. Services at Ocean View Elementary will be transitioned to the YMCA in the summer of 2023. Additionally, on April 25, 2023, Council directed that the City’s preschool program end in August 2023. As a result, the proposed budget eliminates all part-time child care (e.g. teacher) staffing and two parttime administrative positions at the end of the program period in August 2023.

The staffing plan for the Recreation Services Department proposes to retain three fulltime positions, including the Recreation Services Director, the Recreation Coordinator, and the Recreation Supervisor, as well as the part-time volunteer coordinator position. 75% of the Recreation Supervisor position has historically been budgeted to overseeing the City’s child care programs, with the remaining 25% budgeted for administration. This budget proposal includes continuing this Recreation Supervisor position fully funded at 100% with additional duties added to support new community events (such as the Holiday Parade, Summer Concert Series, Art in the Park, and Tree Lighting). In addition, administration of the Arroyo Grande Tourism Business Improvement District (AGTBID) is proposed to be moved from the South County Chambers of Commerce to City staff and, specifically, to the Recreation Services Department starting in FY 2023-24. The estimated cost increase associated with retaining the Recreation Supervisor and reallocating 75% of their position to non-childcare related duties is depicted in Table 4 below.

Table 4 - Proposed Staffing Changes
Vehicle Replacement Requests
As detailed in the table below, the proposed budget includes a request for $604,000 in vehicles and equipment spread over the two years. It is important to note that all vehicles due for replacement are evaluated to determine the status of their operating condition and whether or not their replacement can be delayed.

Salaries & Benefits FY 2023-24 FY 2024-25
Police Service Technician (PST) 104,600 108,300
FT Recreation Supervisor 65,400 67,700
Total 170,000 176,000

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Review Preliminary FY 2023-25 Biennial Operating Budget May 23, 2023

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Table 5 – Vehicle Replacement Requests
Other Significant Budget Requests
With the Major City Goals and Priorities of Funding, Fire Service, Infrastructure, and General Plan in mind, Table 6 below outlines some of the more significant additional budget requests related to these priorities that are included in this proposal. Additionally, Table 6 identifies other significant requests included for review. Each of these items are described more fully below.

Fund Type Lease/Buy Year Cost
General - CDD Small Truck Buy FY 2023-24 50,000
General - Parks Bucket Truck Buy FY 2023-24 160,000
Sewer 3/4 Ton Pickup Buy FY 2023-24 45,000
Water/Streets Forklift Buy FY 2023-24 44,000
General - Parks Riding Mower Buy FY 2024-25 120,000
Streets Dump Truck Buy FY 2024-25 140,000
Water 1/2 Ton Pickup Buy FY 2024-25 45,000
Total Vehicle Cost for 2-year Biennial Budget 604,000

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Table 6 – Other Significant Budget Requests
The Funding goal section includes requests for the following items:
 Information mailers totaling $24,000 to provide the public with informational brochures and newsletters, increasing outreach overall;  Public Relations Survey Tool totaling $10,000 in FY 2024-25 to provide a platform to improve civic participation through a forum or “survey” questions. Citizens can share their opinion on their own time through multiple, convenient channels of engagement. This will be used for the FY 2025-27 Biennial Budget process.  Economic Development Management Services totaling $112,500 to provide additional economic development support to the City and its businesses; and  Revenue Ballot Measure totaling $115,000 to provide polling services needed to engage the community and to help develop and implement strategy and convey information to the community regarding a potential revenue measure.

Division FY 2023-24 FY 2024-25
Funding
Informational Mailers Legis Services 12,000 12,000
Public Relations Survey Tool Legis Services - 10,000
Economic Development Management
Services City Manager's Office 37,500 75,000
Revenue Ballot Measure City Manager's Office 65,000 50,000 Fire Services
Increased Contribution to Five Cities
Fire Authority (FCFA) Non-Departmental 1,215,045 1,397,045 Infrastructure not included in CIP
Open Space Fuel Management Public Works 50,000 50,000
Upgrade IT Projects Administrative Services 125,000 87,000 Guardrail Replacement Public Works - 50,000
General Plan Update
Increased Contractual Services Community Development 278,182 278,182 Other Items
Increased Dispatch Contract (10%) Police 45,184 52,000
SLO County Animal Services Contract Police 11,905 16,925 CIM & Preschool Reduction Recreation (150,745) (158,100) Elections Legis Services - 25,000
1,689,071 1,945,052

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The Infrastructure goal section included requests not in the CIP for the following items that have been included in departmental operating budgets:
 Open Space Fuel Management totaling $100,000 to provide additional resources to our Public Works department to continue to maintain open space;  Update IT projects totaling $212,000 over the two fiscal years that includes:
o Server Replacement at City Hall $30,000
o Email Archive Data tool $10,000
o Firewall replacement $30,000
o Citywide Enterprise storage upgrade $80,000
o Secondary storage update $12,000
o Citywide phone system support $50,000
 Guardrail replacement totaling $50,000 in FY 2024-25 has been identified as outdated and/or deteriorated throughout the City, Public Works will incorporate this work into the annual work plan.

The Fire Services goal section included an increased contribution totaling $2,612,090 to FCFA as discussed during the April 25, 2023 Council meeting based on the Baker Tilly report with the service level and staffing recommendations included in Plan A-4.

The General Plan goal section included an increase to the Community Development contractual services budget totaling $556,364, as discussed during the March 28, 2023 Council meeting to account for the total comprehensive three-year update. Approximately $446,800 of this will be off-set by the revenue from SB 1090 Funds, LEAP, REAP, and SB 2 Funds.

The Other items identified in Table 6 reflect contractual increases for dispatch and animal control services, as well as an anticipated increase in costs to the County Clerk-Recorder for the 2024 general municipal election.

APPROPRIATION OF EXCESS AVAILABLE GENERAL FUND BALANCE:

This preliminary budget discussion also includes information for Council to provide direction towards spending the balance above the 20% Fund Balance Goal Limit and to appropriate funds, if applicable, to certain expenditures.

At the end of FY 2024-25, the projected fund balance is approximately $4,116,600 greater than the 20% goal. Because the act of allocating excess reserves adds to budgeted expenditures, the amount available to spend while keeping the reserve at 20% is $3,425,000. This is the amount staff recommends discussing and potentially providing direction to appropriate as part of this item.

There are many options available for spending excess general fund reserves. However, because the excess reserves are one-time funds and do not represent an ongoing funding source, it is recommended that they be allocated to one-time items rather than to fund ongoing costs, such as new positions or programs. Spending options include an

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additional UAL payment to CalPERS and infrastructure projects, such as pavement maintenance, sidewalk improvements or other capital improvement projects. Decisions regarding projects funded using excess reserves should also consider staff resource constraints.

Infrastructure Projects
Infrastructure projects include pavement maintenance, sidewalk improvements or other capital improvement projects that are not currently funded in the proposed 5-Year CIP.

Infrastructure needs were discussed on May 9, 2023, and reviewed in the proposed 5- Year CIP.

The 5-Year CIP Budget includes $8,386,250 for the Pavement Management Program (PMP) over the course of the 5-year period. To maintain the City’s current Pavement Condition Index (PCI) of 56, which borders on the Poor Condition, approximately $6.25 million needs to be spent annually. The City’s pavement management consultant, PEI Consultants, Inc., has indicated that larger pavement projects have the potential to attract larger contractors who have their own asphalt plants that can often lead to a lower cost per square foot than smaller projects that often attract small firms that are reliant on others for their asphalt supply. Additional allocations of funding from General Fund Reserves to the PMP may result in greater efficiencies for the FY 2024-25 project. Currently, the FY 2023-24 CIP funding allocated to the PMP represents the amount necessary to complete the 2022 Street Repair Project discussed most recently on April 11, 2023, and for designing the FY 2024-25 PMP so that it may be constructed in Summer of 2024. The FY 2024-25 PMP is currently budgeted to include $2.2 million. Excess general fund reserves may be allocated to that project to increase the number of streets and/or treatment methods included in the 2024 project.

The 5-Year CIP Budget includes $240,000 in the FY 2024-25 and FY 2026-27 Budget for Sidewalk Improvements. Current sidewalk repair costs are estimated at $27/square foot.

Additional funding for the sidewalk repair program would increase the number of sidewalk panels that could be repaired in the City and may enable the City to install new sidewalks to close existing gaps in one or two locations.

The City has a number of CIP projects that are not currently funded at this time. If Council wishes to retain excess General Fund Balance for these CIP projects that are not currently funded, it is recommended that the funding remain in fund balance and discussed as part of the next 5-Year Capital Improvement Program Budget, in Spring 2024, in order to ensure staff capacity to complete additional projects.

Reducing the City’s CalPERS Unfunded Accrued Liability (UAL) Because past earnings have not matched assumptions used by CalPERS to determine the amount of funding needed to cover pension obligations for member agencies, most CalPERS pension plans have liabilities that exceed the market value of assets in the plan, creating an Unfunded Actuarial Liability (UAL). The chart below shows historical rates of

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return on CalPERS investments over the last twenty years, indicating tremendous volatility over those years.

During the time period of the above chart, the expected rate of return has ranged from a high of 8.25% to the current expectation of 6.8%. In any year that the rate of return falls below these earnings expectations, the UAL will likely increase. This factor has been the primary driver of the increasing UAL over the years. Additionally, other factors, such as changes to mortality assumptions and shorter amortization of gains and losses, have also increased the UAL.

The City has a UAL of $12.3 million as of June 30, 2021. This total includes amounts from all six City pension plans, though primarily from the Tier 1 Plans, as shown in table 7:

Table 7 – City’s UAL at 06/30/2021 based on letter issued July 2022 In an effort to reduce the City’s CalPERS UAL, the City Council decided during the FY 2018-20 Biennial Budget hearings to make two prepayments on the UAL. The first prepayment of $3 million was made in July 2018 and a second prepayment of $2 million was made in July 2019. The future realized savings from these investments will be approximately $423,000 annually on average for the next 29 years. This represents a rate Tier
PERS Unfunded
Accrued Liability
Funded
Percentage
Misc. 1st Level 10,631,134 76.0%
Misc. 2nd Level (51,998) 107.3%
Misc. PEPRA (100,944) 107.5%
Safety Police 1st Level 1,901,150 95.0%
Safety Police 2nd Level (58,889) 104.8%
Safety Police PEPRA (50,265) 107.5%
12,270,188 87.6%

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of return on investment from the $5 million paid to CalPERS of 7.1%. During the FY 2022- 23 Mid-Cycle Update, the City Council chose not to make another prepayment but to focus on other City needs. The City Council may choose to allocate some or all of the $3.4 million of excess General Fund Balance to pay down the UAL further in FY 2023-24 or FY 2024-25.

OTHER BUDGET ISSUES:

Recreation Services Department Cost Recovery Goal
The proposed budget includes anticipated revenue in the amount of $457,867 in FY 2023- 24 and $399,600 in FY 2024-25 from the Recreation Services Department’s programs.

Expenditures are budgeted at $883,970 in FY 2023-24 and $783,550 in FY 2024-25 for this department. During past budget development processes, the City Council provided direction that the Recreation Services Department should seek to fully recover costs associated with its services through fees and other revenue generation efforts. A comprehensive fee study is currently underway, and it is anticipated that a revised fee schedule will be presented to Council for consideration in the first quarter of FY 2023-24 that will enable the City to adjust its fees to ensure appropriate cost-recovery for services, including services that will continue to be offered by the Recreation Services Department.

Staff has evaluated cost recovery models employed by other recreation departments as part of the fee study efforts, and will include a discussion of these models in the analysis of the fee study when it is presented to Council in the coming months. Most models employ a tiered approach that seeks to recoup different percentages of the cost of each service depending on the extent to which the specific service benefits the general public.

The result is often a blended cost recovery rate for overall parks and recreation departments, with the national average reaching approximately 23% cost recovery.

Enterprise Fund
Though the focus of this report has been on the City’s General Fund, it is important to point out that the City’s two enterprise fund programs, Water and Sewer, reflect rate adjustments approved by the City Council on March 8, 2022, based on the Water and Wastewater Rate Study. The table below details a consolidated look at these enterprise funds.

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Special Revenue Funds
Special Revenue Funds are a governmental fund type used to account for specific revenues that are legally restricted to expenditures for particular purposes. The FY 2023- 25 Biennial Budget proposes changes to 7 of the 22 Special Revenue Funds. Only the Special Revenue Funds with changes will be highlighted in this section.

Fund 211 Public Access Television
The Fund 211 Public Access Television includes fund accounts for fees collected from Charter Communications that are restricted for support of public, education, and government access programming and equipment. The anticipated revenues in this fund increased by $5,000 compared to the current budget. The expenditure budget is also proposed to increase by $180,00 due to the estimated cost to update the Council Chambers AV system that was originally installed in 2017. The anticipated fund balance at the end of FY 2024-25 is $26,266 as shown in the table below:
2021-22
FINAL CURRENT PROPOSED 2023-24 2024-25

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital $ 8,040,989 $ 5,421,118 $ 6,543,465 $ 7,429,554 $ 7,669,826 Revenues:

Revenues 7,573,966 9,057,997 9,079,627 10,012,543 9,881,840 Transfers In 4,056,970 4,245,605 6,800,761 4,299,371 4,080,985 Total Revenues 11,630,936 13,303,602 15,880,388 14,311,914 13,962,825 Expenses:

Salaries and Benefits 943,044 1,077,900 1,077,900 1,146,000 1,182,900 Services and Supplies 4,475,003 4,804,835 4,587,108 5,228,421 5,863,184 Debt Service 1,362 - - - -
Capital Outlay 903,558 3,700 3,700 82,000 47,500
Capital Improvement Program 420,166 1,591,450 2,600,515 1,175,800 712,000 Transfers Out 6,385,327 6,870,805 6,725,076 6,439,421 6,485,585 Total Expenditures 13,128,460 14,348,690 14,994,299 14,071,642 14,291,169 Revenues over/(under) Expenses (1,497,524) (1,045,088) 886,089 240,272 (328,344) Available Fund Balance $ 6,543,465 $ 4,376,030 $ 7,429,554 7,669,826 7,341,482 2022-23

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Fund 214 Park Improvement
The Fund 214 Park Improvement Fund includes impact fees collected from developers for park improvements and are to be used to maintain the adopted level of service for neighborhood and community parks of 4.0 acres per thousand population. The anticipated revenues remained consistent compared to the current budget. The expenditure budget increased by $15,000, is related to the repairs at Strother Park BBQ Repairs and Central Irrigation Control replacement. The anticipated fund balance at the end of FY 2024-25 is $171,390 as shown in the table below:
2021-22
FINAL ORIGINAL ADJUSTED 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 193,039 $ 194,889 $ 192,065 $ 193,515 $ 19,965 Revenues:

Revenues 40,647 40,200 40,200 45,200 46,200
Transfers In - - - - -
Total Revenues 40,647 40,200 40,200 45,200 46,200
Expenditures:

Salaries and Benefits - - -
Services and Supplies 41,621 16,800 38,750 218,750 39,900 Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 41,621 16,800 38,750 218,750 39,900
Change in Fund Balance (974) 23,400 1,450 (173,550) 6,301 Ending Fund Balance $ 192,065 $ 218,289 $ 193,515 $ 19,965 $ 26,266 2022-23 2021-22
FINAL ORIGINAL ADJUSTED 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 308,247 $ 164,196 $ 215,690 $ 206,590 $ 182,490 Revenues:

Revenues 23,063 70,900 50,900 50,900 50,900
Transfers In - - - - -
Total Revenues 23,063 70,900 50,900 50,900 50,900
Expenditures:

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Fund 219 Parkside Assessment District
The Fund 219 Parkside Assessment District Fund includes revenue derived from annual assessments, which are used to pay the cost incurred by the City for landscape maintenance. The anticipated revenues remained consistent compared to the current budget. The expenditure budget is proposed to increase by $250,000 in FY 2024-25, to pay for a new play structure within the Assessment District, as provided for in the 5-Year CIP. The anticipated fund balance at the end of FY 2024-25 is $256,974 as shown in the table below:

Fund 220 Streets
Fund 220 Streets accounts for receipts and expenditures of money apportioned by the State under Streets and Highway Code. The use of gas tax revenues can only be used to construct and maintain streets, roads and highways. The anticipated revenues are expected to remain flat in FY 2023-24 compared to the current budget. The expenditure budget is proposed to increase by $124,300 related to increased employee costs, debt services, and transfers to other funds. The anticipated fund balance at the end of FY 2024-25 is $152,721 as shown in the table below:
2021-22
FINAL ORIGINAL ADJUSTED 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 463,760 $ 471,360 $ 475,734 $ 483,334 $ 495,154 Revenues:

Revenues 37,240 46,500 46,500 46,500 46,500
Transfers In - - - - -
Total Revenues 37,240 46,500 46,500 46,500 46,500
Expenditures:

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Fund 225 Transportation
Fund 225 Transportation revenue is provided by the San Luis Obispo County of Government’s (SLOCOG) Local Transportation Fund (LTF). The annual appropriation is restricted to transportation systems, including transit, pedestrian, street and road maintenance. The anticipated revenues remain unchanged. The expenditure budget is proposed to increase by $167,000 to reflect an increase in the allocation to support Fund 220 Streets. The anticipated fund balance at the end of FY 2024-25 is $1.5 million as shown in the table below:
2021-22
FINAL ORIGINAL ADJUSTED 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 90,338 $ - $ 81,326 $ 244,024 282,790 Revenues:

Revenues 970,471 799,352 891,066 992,435 1,027,100
Transfers In 471,048 576,000 576,000 475,000 500,000
Total Revenues 1,441,519 1,375,352 1,467,066 1,467,435 1,527,100 Expenditures:

Salaries and Benefits 504,575 483,700 523,100 547,200 565,000 Services and Supplies 263,827 436,900 364,168 332,800 522,700 Debt Service 28,545 - - 8,369 8,369
Capital Outlay - - - - -
Transfers Out 653,584 456,167 417,100 540,300 561,100
Total Expenditures 1,450,531 1,376,767 1,304,368 1,428,669 1,657,169 Change in Fund Balance (9,012) (1,415) 162,698 38,766 (130,069) Ending Fund Balance $ 81,326 $ (1,415) $ 244,024 $ 282,790 152,721 2022-23 2021-22
FINAL ORIGINAL ADJUSTED 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 540,130 $ 965,130 $ 967,679 $ 1,248,679 $ 1,363,679 Revenues:

Revenues 660,553 364,000 514,000 515,000 516,000
Transfers In - - - - -
Total Revenues 660,553 364,000 514,000 515,000 516,000
Expenditures:

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Item 12.a.

City Council
Review Preliminary FY 2023-25 Biennial Operating Budget May 23, 2023

Page 22 ends

Fund 240 Tourism Business Improvement District (TBID)
Fund 240 TBID provides projects, programs, and activities that benefit lodging businesses located and operating within the City of Arroyo Grande. A two percent (2%) assessment is levied on all lodging businesses of the rent charged by the operator per occupied room per night for all transient occupancies. The revenue collected is used to promote the lodging industry within the City. The anticipated revenues increased by $39,000 compared to the current budget. The expenditure budget is proposed to increase by $32,500 compared to the current budget. The TBID budget has been included as Public Hearing Item 10.a. on the same agenda as this report. The anticipated fund balance at the end of FY 2024-25 is $361,383 as shown in the table below:

Fund 260 American Rescue Plan Act (ARPA)
Fund 260 ARPA is intended to provide financial aid to families, governments, businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To support the immediate pandemic response, bring back jobs, and lay the groundwork for a strong and equitable recovery, ARPA established the Coronavirus State and Local Recovery Fund, designed to deliver $350 billion to state, local, territorial, and Tribal governments to bolster their response to the COVID-19 emergency and recover from the economic impacts caused by the public health crisis. This legislation provided $27 billion in federal money to the State of California. The State then allocated $1.2 billion to non-entitlement units of local government (NEUs). As an NEU, Arroyo Grande is eligible and has received $4,300,241.

The expenditure budget for ARPA Fund 260 has been adjusted to reflect the proposed allocation changes discussed on May 9, 2023, as part of the 5-year CIP Expenditure Program related to Sewer, Stormwater, and Public Safety Video Cameras Infrastructure projects. Arroyo Grande has until December 31, 2024, to commit ARPA funds by way of a contract or purchase order. Interim US Treasury rules currently list December 31, 2026, 2021-22
FINAL ORIGINAL ADJUSTED 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 328,350 $ 325,075 $ 405,833 $ 383,583 $ 367,833 Revenues:

Page 538 of 569 ends

Item 12.a.

City Council
Review Preliminary FY 2023-25 Biennial Operating Budget May 23, 2023

Page 23 ends

as the deadline to spend these monies. The anticipated fund balance at the end of FY 2024-25 is $0 as shown in the table below:

Summary
The proposed FY 2023-24 Budget recommends approximately $43.7 million in expenditures, including operating costs such as salaries, benefits, services, supplies, maintenance, debt service, and capital related items as shown in the consolidated fund summary table 8 shown below:

The proposed FY 2024-25 Budget recommends approximately $45 million in expenditures, including operating costs such as salaries, benefits, services, supplies, maintenance, debt service, and capital related items as shown in the consolidated fund summary table 9 shown below:
2021-22
FINAL CURRENT PROPOSED 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ - $ 1,091,441 $ 1,545,875 $ 1,453,900 $ 0 Revenues:

Revenues 2,150,121 2,150,121 2,150,121 - -
Transfers In - - - - -
Total Revenues 2,150,121 2,150,121 2,150,121 - -
Expenditures:

Revenues 18,544,027 2,962,000 10,012,543 2,433,985 423,944 34,376,500 Transfers In 3,114,066 - 4,299,371 475,000 - 7,888,437
Total Revenues 21,658,093 2,962,000 14,311,914 2,908,985 423,944 42,264,937 Expenditures:

Salaries and Benefits 12,194,000 - 1,146,000 547,200 - 13,887,200 Services and Supplies 9,384,771 1,041,500 6,404,221 1,091,965 3,500 17,925,957 Debt Service 309,566 - - 8,369 382,944 700,879
Capital Outlay 239,500 - 82,000 - - 321,500
Transfers Out 115,000 1,707,142 6,439,421 2,568,800 30,000 10,860,363 Total Expenditures 22,242,837 2,748,642 14,071,642 4,216,334 416,444 43,695,899 Total Operating Incr/(Decr) (584,744) 213,358 240,272 (1,307,349) 7,500 (1,430,962) Available Fund Balance $ 8,591,418 $ 3,305,978 $ 7,669,826 $ 9,422,738 $ (600,113) $ 28,389,847 Total
Enterprise
Funds
Agency
Funds
General
Fund
Local Sales
Tax Fund
Special
Revenue

Page 539 of 569 ends

Item 12.a.

City Council
Review Preliminary FY 2023-25 Biennial Operating Budget May 23, 2023

Page 24 ends

Next Steps
The Preliminary FY 2023-25 Biennial Budget and the 5-Year CIP will be presented to the City Council at a Public Hearing held on June 13, 2023, with formal adoption anticipated on June 27, 2023. Once approved by Council, the FY 2023-25 Biennial budget, FY 2023- 24 funds will be appropriated on July 1, 2023.

ALTERNATIVES:

The following alternatives are provided for the Council’s consideration:

1. Review and provide direction on the Preliminary FY 2023-25 Biennial Budget; or

2. Provide other direction to staff.

ADVANTAGES:

Providing direction will assist staff in developing the Preliminary FY 2023-25 Biennial Budget that is responsive to the City’s needs and community priorities, while maintaining economic feasibility.

DISADVANTAGES:

There are no disadvantages to providing information for the community, City Council, or staff regarding the Preliminary FY 2023-25 Biennial Budget.

ENVIRONMENTAL REVIEW:

The development of the Preliminary FY 2023-25 Biennial Budget plan is not a project subject to the California Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) Individual projects listed herein may be subject to CEQA and environmental reviews will be conducted at the appropriate time during implementation of those projects.

Beginning Fund Balance $ 8,591,418 $ 3,305,978 $ 7,669,826 $ 9,422,738 $ (600,113) $ 28,389,847 Revenues:

Revenues 18,999,668 3,033,000 9,881,840 2,484,950 412,944 34,812,402 Transfers In 3,185,100 - 4,080,985 500,000 - 7,766,085
Total Revenues 22,184,769 3,033,000 13,962,825 2,984,950 412,944 42,578,487 Expenditures:

Salaries and Benefits 12,437,200 - 1,182,900 565,000 - 14,185,100 Services and Supplies 9,724,816 1,087,000 6,575,184 1,090,015 3,500 18,480,515 Debt Service 294,386 - - 8,369 382,944 685,699
Capital Outlay 149,500 - 47,500 - - 197,000
Transfers Out 115,000 3,504,709 6,485,585 1,291,400 30,000 11,426,693 Total Expenditures 22,720,902 4,591,709 14,291,169 2,954,784 416,444 44,975,007 Total Operating Incr/(Decr) (536,133) (1,558,709) (328,344) 30,166 (3,500) (2,396,520) Available Fund Balance $ 8,055,284 $ 1,747,269 $ 7,341,482 $ 9,452,904 $ (603,613) $ 25,993,327 General
Fund
Local Sales
Tax Fund
Enterprise
Funds
Agency
Funds Total
Special
Revenue

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Item 12.a.

City Council
Review Preliminary FY 2023-25 Biennial Operating Budget May 23, 2023

Page 25 ends

PUBLIC NOTIFICATION AND COMMENTS:

The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.

Attachments:

1. FY 2023-25 Biennial Budget Fund Summaries

2. Community Priority Survey Results

3. FY 2023-25 Council Goals Work Plans

Page 541 of 569 ends

FUND SUMMARIES ATTACHMENT 1
CONSOLIDATED SUMMARY – ALL FUNDS
2023-24 BUDGET
2024-25 BUDGET
Beginning Fund Balance $ 9,176,161 $ 3,092,620 $ 7,429,554 $ 10,730,087 $ (607,613) $ 29,820,809 Revenues:

Salaries and Benefits 12,194,000 - 1,146,000 547,200 - 13,887,200 Services and Supplies 9,384,771 1,041,500 6,404,221 1,091,965 3,500 17,925,957 Debt Service 309,566 - - 8,369 382,944 700,879
Capital Outlay 239,500 - 82,000 - - 321,500
Transfers Out 115,000 1,707,142 6,439,421 2,568,800 30,000 10,860,363 Total Expenditures 22,242,837 2,748,642 14,071,642 4,216,334 416,444 43,695,899 Total Operating Incr/(Decr) (584,744) 213,358 240,272 (1,307,349) 7,500 (1,430,962) Available Fund Balance $ 8,591,418 $ 3,305,978 $ 7,669,826 $ 9,422,738 $ (600,113) $ 28,389,847 Total
Enterprise
General Fund Funds Agency Funds
Local Sales
Tax Fund
Special
Revenue
Beginning Fund Balance $ 8,591,418 $ 3,305,978 $ 7,669,826 $ 9,422,738 $ (600,113) $ 28,389,847 Revenues:

Salaries and Benefits 12,437,200 - 1,182,900 565,000 - 14,185,100 Services and Supplies 9,724,816 1,087,000 6,575,184 1,090,015 3,500 18,480,515 Debt Service 294,386 - - 8,369 382,944 685,699
Capital Outlay 149,500 - 47,500 - - 197,000
Transfers Out 115,000 3,504,709 6,485,585 1,291,400 30,000 11,426,693 Total Expenditures 22,720,902 4,591,709 14,291,169 2,954,784 416,444 44,975,007 Total Operating Incr/(Decr) (536,133) (1,558,709) (328,344) 30,166 (3,500) (2,396,520) Available Fund Balance $ 8,055,284 $ 1,747,269 $ 7,341,482 $ 9,452,904 $ (603,613) $ 25,993,327 Enterprise
Funds Agency Funds Total
Special
General Fund Revenue
Local Sales
Tax Fund

Page 542 of 569 ends

FUND SUMMARIES ATTACHMENT 1

GENERAL FUNDS
FUND: 010 GENERAL FUND
2022-23 2022-23 2023-24 2024-25
2021-22 ADOPTED PROJECTION PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 8,271,216 $ 7,999,075 $ 10,823,192 $ 9,176,161 $ 8,591,418 Revenues:

Revenues 18,404,418 17,888,444 19,091,882 18,544,027 18,999,668 Transfers In 2,993,204 3,012,700 3,012,700 3,114,066 3,185,100 Total Revenues 21,397,622 20,901,144 22,104,582 21,658,093 22,184,768 Expenditures:

Salaries and Benefits 10,850,612 13,804,135 14,163,700 12,194,000 12,437,200 Services and Supplies 6,454,835 7,199,231 7,351,431 9,384,771 9,724,816 Debt Service 128,493 286,261 286,261 309,566 294,386
Capital Outlay 12,998 453,865 358,865 239,500 149,500
Transfers Out 1,398,707 1,535,785 1,591,356 115,000 115,000 Total Expenditures 18,845,646 23,279,277 23,751,613 22,242,837 22,720,902 Total Operating Increases (Decreases) 2,551,977 (2,378,133) (1,647,031) (584,744) (536,134) Available Fund Balance $ 10,823,192 $ 5,620,942 $ 9,176,161 $ 8,591,418 $ 8,055,283 Percent of Expenditures 57.4% 24.1% 38.6% 38.6% 35.5%
This is the primary operating fund of the City, which accounts for resources and services traditionally associated with government. The General Fund provides administrative, financial, police protection, community development, public works, and recreation services to the community and other funds.

The General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund.

Page 543 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL CURRENT PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 4,820,703 $ 6,026,351 $ 6,026,351 $ 3,151,831 $ 3,365,189 Revenues:

Revenues 2,840,596 2,846,000 3,064,627 2,962,000 3,033,000 Transfers In - - - - -
Total Revenues 2,840,596 2,846,000 3,064,627 2,962,000 3,033,000 Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 591,981 645,394 593,553 1,041,500 1,087,000 Capital Outlay - - - - -
Transfers Out 1,042,968 6,886,709 5,345,594 1,707,142 3,504,709 Total Expenditures 1,634,948 7,532,103 5,939,147 2,748,642 4,591,709 Change in Fund Balance 1,205,648 (4,686,103) (2,874,520) 213,358 (1,558,709) Ending Fund Balance $ 6,026,351 $ 1,340,248 $ 3,151,831 $ 3,365,189 $ 1,806,480 2022-23
This fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006.

FUND: 218 LOCAL SALES TAX

Page 544 of 569 ends

FUND SUMMARIES ATTACHMENT 1

ENTERPRISE FUNDS
FUND: 612 SEWER
2021-22
FINAL CURRENT PROJECTION 2023-24 2024-25

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital $ 1,122,337 $ 1,024,035 $ 482,289 $ 633,887 $ 591,987 Revenues:

Revenues 872,969 1,077,960 1,099,590 1,965,850 1,272,250 Transfers In 20,423 - 246,777 337,250 -
Total Revenues 893,392 1,077,960 1,346,367 2,303,100 1,272,250 Expenses:

Salaries and Benefits 263,969 244,700 244,700 388,700 402,100 Services and Supplies 130,755 176,040 176,040 201,900 212,900 Debt Service 1,343 - - - -
Operating Equipment 593,385 2,500 2,500 49,500 2,500
Capital Improvement Program 57,835 228,828 228,828 1,132,000 282,000 Transfers Out 486,153 542,700 542,700 572,900 531,400
Total Expenditures 1,533,440 1,194,768 1,194,768 2,345,000 1,430,900 Ending Available Working Capital $ 482,289 $ 907,227 $ 633,887 $ 591,987 $ 433,338 This fund is used to account for maintenance of sewer lines connecting City residents to the South San Luis Obispo County Sanitation District sewer treatment plant. Money is collected from utility bills paid by customers.
2022-23

Page 545 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL CURRENT PROJECTION 2023-24 2024-25

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital $ 324,066 $ 341,066 $ 328,790 $ 370,790 $ 407,790 Revenues:

Revenues 4,724 42,000 42,000 37,000 37,000
Transfers In - - - -
Total Revenues 4,724 42,000 42,000 37,000 37,000
Expenses:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Debt Service - - - - -
Capital Outlay - - - - -
Capital Improvement Program - - - - -
Transfers Out - - - - -
Total Expenditures - - - -
Ending Available Working Capital $ 328,790 $ 383,066 $ 370,790 $ 407,790 $ 444,790 FUND: 634 SEWER FACILITY
2022-23
This fund is used to account for the accumulation of sewer facility revenues to be used in capital improvement projects in the City. Money is collected from development to offset the impacts new development has on the sewer collection system.

FUND: 640 WATER
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 3,867,001 $ 1,315,076 3,011,897 $ 3,981,134 4,161,306 Revenues:

Revenues 6,703,369 7,873,037 7,873,037 7,944,693 8,507,590 Transfers In 343,398 417,250 2,943,355 - -
Total Revenues 7,046,767 8,290,287 10,816,392 7,944,693 8,507,590 Expenses:

Salaries and Benefits 679,074 833,200 833,200 757,300 780,800 Services and Supplies 651,098 800,440 800,440 1,064,400 1,569,300 Debt Service 19 - - - -
Capital Outlay 310,173 1,200 1,200 32,500 45,000
Capital Improvement Program 362,331 1,362,622 2,371,687 43,800 430,000 Transfers Out 5,899,174 6,058,355 5,840,628 5,866,521 5,954,185 Total Expenditures 7,901,870 9,055,817 9,847,155 7,764,521 8,779,285 Ending Available Working Capital 3,011,897 $ 549,546 3,981,134 $ 4,161,306 3,889,611 This fund is used to account for the activities associated with the transmission and distribution of potable water by the City to its users. Money is collected from utility bills paid by customers. 2022-23

Page 546 of 569 ends

FUND SUMMARIES ATTACHMENT 1
FUND: 641 LOPEZ
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital $ 1,706,317 $ 1,704,672 $ 1,706,778 $ 1,706,778 $ 1,706,778 Revenues:

Revenues 461 - -
Transfers In 3,693,150 3,828,355 3,610,628 3,962,121 4,080,985 Total Revenues 3,693,611 3,828,355 3,610,628 3,962,121 4,080,985 Expenses:

Salaries and Benefits - - - - -
Services and Supplies 3,693,150 3,828,355 3,610,628 3,962,121 4,080,985 Debt Service - - - - -
Capital Outlay - - - - -
Capital Improvement Program - - - - -
Transfers Out - - - - -
Total Expenditures 3,693,150 3,828,355 3,610,628 3,962,121 4,080,985 Ending Available Working Capital $ 1,706,778 $ 1,704,672 $ 1,706,778 $ 1,706,778 $ 1,706,778 2022-23
This fund is responsible for the purchase of water from Lopez Dam. The City has a 50.55% share of the water and expense generated by Zone 3 – County of San Luis Obispo’s Flood Control and Water Conservation District.

FUND: 642 WATER FACILITY
2021-22
FINAL ADOPTED PROJECTION 2023-24 2024-25

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 1,021,269 1,036,269 1,013,711 $ 736,963 $ 801,963 Revenues:

Revenues (7,557) 65,000 65,000 65,000 65,000
Transfers In - - - - -
Total Revenues (7,557) 65,000 65,000 65,000 65,000
Expenses:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Debt Service - - - - -
Capital Outlay - - - - -
Capital Improvement Program - - - - -
Transfers Out - 269,750 341,748 - -
Total Expenditures - 269,750 341,748 - -
Ending Available Working Capital $ 1,013,711 $ 831,519 $ 736,963 $ 801,963 $ 866,963 This fund is used to account for the accumulation of water facility revenues to be used in capital improvement projects in the City. Money is collected from development to offset the impacts new development has on the water distribution system.
2022-23

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FUND SUMMARIES ATTACHMENT 1

SPECIAL REVENUE FUNDS
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 341,820 $ 359,019 $ 354,561 $ 405,561 $ 426,561 Revenues:

Revenues 12,741 51,000 51,000 21,000 26,000
Transfers In - - - - -
Total Revenues 12,741 51,000 51,000 21,000 26,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 12,741 51,000 51,000 21,000 26,000 Ending Fund Balance $ 354,561 $ 410,019 $ 405,561 $ 426,561 $ 452,561 This fund accounts for impact fees collected from developers for the expansion of the existing fire station in order to serve future development.
2022-23
FUND: 210 FIRE PROTECTION IMPACT FEES
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 193,039 $ 194,889 $ 192,065 $ 193,515 $ 19,965 Revenues:

Revenues 40,647 40,200 40,200 45,200 46,200
Transfers In - - - - -
Total Revenues 40,647 40,200 40,200 45,200 46,200
Expenditures:

Salaries and Benefits - - -
Services and Supplies 41,621 16,800 38,750 218,750 39,900 Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 41,621 16,800 38,750 218,750 39,900
Change in Fund Balance (974) 23,400 1,450 (173,550) 6,301 Ending Fund Balance $ 192,065 $ 218,289 $ 193,515 $ 19,965 $ 26,266 FUND: 211 PUBLIC ACCESS TELEVISION
This fund accounts for fees collected from Charter Communications that are restricted for support of public, education, and government access programming and equipment. 2022-23

Page 548 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 53,433 $ 58,734 $ 54,271 $ 59,571 $ 64,871 Revenues:

Revenues 838 5,300 5,300 5,300 5,300
Transfers In - - - -
Total Revenues 838 5,300 5,300 5,300 5,300
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 838 5,300 5,300 5,300 5,300
Ending Fund Balance $ 54,271 $ 64,034 $ 59,571 $ 64,871 $ 70,171 This fund accounts for impact fees collected from developers for the expansion of the existing police facility in order to serve future development.

FUND: 212 POLICE PROTECTION IMPACT FEES
2022-23
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,337,995 $ 1,443,994 $ 1,417,202 $ 1,508,202 $ 1,564,202 Revenues:

Revenues 79,207 91,000 91,000 56,000 56,000
Transfers In - - -
Total Revenues 79,207 91,000 91,000 56,000 56,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 79,207 91,000 91,000 56,000 56,000 Ending Fund Balance $ 1,417,202 $ 1,534,994 $ 1,508,202 $ 1,564,202 $ 1,620,202 This fund accounts for the receipts of park-in-lieu fees (Quimby) and grant revenues that are used for construction, park acquisition, and development of park facilities.

FUND: 213 PARK DEVELOPMENT
2022-23

Page 549 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 308,247 $ 164,196 $ 215,690 $ 206,590 $ 182,490 Revenues:

Revenues 23,063 70,900 50,900 50,900 50,900
Transfers In - - - - -
Total Revenues 23,063 70,900 50,900 50,900 50,900
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - 75,000 62,000
Capital Outlay - - - - -
Transfers Out 115,620 126,000 60,000 - -
Total Expenditures 115,620 126,000 60,000 75,000 62,000 Change in Fund Balance (92,557) (55,100) (9,100) (24,100) (11,100) Ending Fund Balance $ 215,690 $ 109,096 $ 206,590 $ 182,490 $ 171,390 Impact fees collected from developers for park improvements are to be used to maintain the adopted level of service for neighborhood and community parks of 4.0 acres per thousand population. This fund accounts for the receipt and use of these monies.

FUND: 214 PARK IMPROVEMENT
2022-23
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 25,260 $ 29,714 $ 26,485 $ 30,685 $ 32,885 Revenues:

Revenues 1,225 4,200 4,200 2,200 2,200
Transfers In - - - -
Total Revenues 1,225 4,200 4,200 2,200 2,200
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 1,225 4,200 4,200 2,200 2,200
Ending Fund Balance $ 26,485 $ 33,914 $ 30,685 $ 32,885 $ 35,085 2022-23
This fund accounts for impact fees collected from developers and used for recreation facilities in order to maintain the adopted level of service of recreation/community center facilities of 542 square feet per thousand population.

FUND: 215 RECREATION COMMUNITY CENTER

Page 550 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 40,467 $ 39,156 $ 39,156 $ 29,221 $ 23,086 Revenues:

Revenues 8,767 9,500 9,500 10,000 10,000
Transfers In - - - - -
Total Revenues 8,767 9,500 9,500 10,000 10,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 6,982 14,535 14,535 14,535 14,535 Capital Outlay - - - - -
Transfers Out 3,096 4,900 4,900 1,600 1,600
Total Expenditures 10,078 19,435 19,435 16,135 16,135
Change in Fund Balance (1,311) (9,935) (9,935) (6,135) (6,135) Ending Fund Balance $ 39,156 $ 29,221 $ 29,221 $ 23,086 $ 16,951 FUND: 216 GRACE LANE ASSESSMENT DISTRICT
This fund accounts for the landscape maintenance within the Grace Lane housing tract. A special benefit assessment is levied on property owners to pay for landscape maintenance expenditures.
2022-23 2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,287 $ 4,164 $ 4,418 $ 4,418 $ 3,218 Revenues:

Revenues 5,732 5,900 5,900 5,900 5,900
Transfers In - - - - -
Total Revenues 5,732 5,900 5,900 5,900 5,900
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 2,601 5,700 5,700 5,700 5,700
Capital Outlay - - - - -
Transfers Out - 200 200 1,400 1,400
Total Expenditures 2,601 5,900 5,900 7,100 7,100
Change in Fund Balance 3,131 - - (1,200) (1,200)
Ending Fund Balance $ 4,418 $ 4,164 $ 4,418 $ 3,218 $ 2,018 FUND: 217 LANDSCAPE MAINTENANCE DISTRICTS
2022-23
This fund accounts for the landscape maintenance of parkways within two housing tracts. A special benefit assessment is levied on property owners to pay for landscape maintenance expenditures.

Page 551 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 463,760 $ 471,360 $ 475,734 $ 483,334 $ 495,154 Revenues:

Revenues 37,240 46,500 46,500 46,500 46,500
Transfers In - - - - -
Total Revenues 37,240 46,500 46,500 46,500 46,500
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 19,170 30,000 30,000 32,380 32,380 Capital Outlay - - - - -
Transfers Out 6,096 8,900 8,900 2,300 252,300
Total Expenditures 25,266 38,900 38,900 34,680 284,680
Change in Fund Balance 11,974 7,600 7,600 11,820 (238,180) Ending Fund Balance $ 475,734 $ 478,960 $ 483,334 $ 495,154 $ 256,974 2022-23
FUND: 219 PARKSIDE ASSESSMENT DISTRICT
This fund accounts for revenue derived from annual assessments, which are used to pay the cost incurred by the City for landscape maintenance. 2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 90,338 $ - $ 81,326 $ 244,024 282,790 Revenues:

Revenues 970,471 799,352 891,066 992,435 1,027,100
Transfers In 471,048 576,000 576,000 475,000 500,000
Total Revenues 1,441,519 1,375,352 1,467,066 1,467,435 1,527,100 Expenditures:

Salaries and Benefits 504,575 483,700 523,100 547,200 565,000 Services and Supplies 263,827 436,900 364,168 332,800 522,700 Debt Service 28,545 - - 8,369 8,369
Capital Outlay - - - - -
Transfers Out 653,584 456,167 417,100 540,300 561,100
Total Expenditures 1,450,531 1,376,767 1,304,368 1,428,669 1,657,169 Change in Fund Balance (9,012) (1,415) 162,698 38,766 (130,069) Ending Fund Balance $ 81,326 $ (1,415) $ 244,024 $ 282,790 152,721 FUND: 220 STREETS (GAS TAX)
This fund accounts for receipts and expenditures of money apportioned by the State under Streets and Highway Code. The use of gas tax revenues can only be used to construct and maintain streets, roads and highways.
2022-23

Page 552 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,139,198 $ 1,153,198 $ 1,130,771 $ 1,186,771 1,222,771 Revenues:

Revenues (8,427) 56,000 56,000 36,000 36,000
Transfers In - - - - -
Total Revenues (8,427) 56,000 56,000 36,000 36,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance (8,427) 56,000 56,000 36,000 36,000 Ending Fund Balance $ 1,130,771 $ 1,209,198 $ 1,186,771 $ 1,222,771 1,258,771 FUND: 222 TRAFFIC SIGNALIZATION
2022-23
This fund accounts for traffic signalization assessment levied against developments for the future cost of traffic signals.
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 153,760 $ 154,260 $ 152,089 $ 152,589 153,089 Revenues:

Revenues (1,671) 500 500 500 500
Transfers In - - - - -
Total Revenues (1,671) 500 500 500 500
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance (1,671) 500 500 500 500
Ending Fund Balance $ 152,089 $ 154,760 $ 152,589 $ 153,089 $ 153,589 This fund accounts for developer traffic mitigation measure fees charged as a result of an environmental review.

FUND: 223 TRAFFIC CIRCULATION
2022-23

Page 553 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 2,601,058 $ 1,848,589 $ 2,587,414 $ 1,359,946 $ 1,419,946 Revenues:

Revenues (13,644) 150,000 150,000 60,000 60,000
Transfers In - - - - -
Total Revenues (13,644) 150,000 150,000 60,000 60,000
Expenditures:

Salaries and Benefits - - - - -
Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out - 831,219 1,377,468 - -
Total Expenditures - 831,219 1,377,468 - -
Change in Fund Balance (13,644) (681,219) (1,227,468) 60,000 60,000 Ending Fund Balance $ 2,587,414 $ 1,167,370 $ 1,359,946 $ 1,419,946 $ 1,479,946 2022-23
FUND: 224 TRANSPORTATION FACILITY IMPACT
This fund accounts for developer impact fees (AB1600 fees) paid to protect the public health, safety, and welfare by maintaining the existing level of public services for existing and future residents within the City of Arroyo Grande.

FUND: 225 TRANSPORTATION
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 540,130 $ 965,130 $ 967,679 $ 1,248,679 $ 1,363,679 Revenues:

Revenues 660,553 364,000 514,000 515,000 516,000
Transfers In - - - - -
Total Revenues 660,553 364,000 514,000 515,000 516,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - 15,000 - - -
Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out 233,004 233,000 233,000 400,000 425,000
Total Expenditures 233,004 248,000 233,000 400,000 425,000 Change in Fund Balance 427,549 116,000 281,000 115,000 91,000 Ending Fund Balance $ 967,679 $ 1,081,130 $ 1,248,679 $ 1,363,679 $ 1,454,679 This revenue source is provided by the San Luis Obispo County of Government’s (SLOCOG) Local Transportation Fund (LTF). The annual appropriation is restricted to transportation systems, including transit, pedestrian, street and road maintenance. 2022-23

Page 554 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 369,799 $ 249,499 $ 270,767 $ 204,333 $ 119,033 Revenues:

Revenues 13,389 77,000 77,000 52,000 52,000
Transfers In - - - - -
Total Revenues 13,389 77,000 77,000 52,000 52,000
Expenditures:

Salaries and Benefits - - - -
Services and Supplies 112,420 137,300 143,434 137,300 137,300 Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 112,420 137,300 143,434 137,300 137,300 Change in Fund Balance (99,032) (60,300) (66,434) (85,300) (85,300) Ending Fund Balance $ 270,767 $ 189,199 $ 204,333 $ 119,033 $ 33,733 2022-23
FUND: 226 WATER NEUTRALIZATION IMPACT
The City requires development projects that increase total water consumption in the City to “neutralize” that demand by reducing water consumption in existing development by an equivalent amount or by paying a fee in-lieu of performing water consumption reductions.

This fund accounts for the amount collected from developers and is used towards the City’s water conservation efforts.
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 5,891 $ 404 $ 5,891 $ 5,891 $ 5,891 Revenues:

Revenues - - - - -
Transfers In - - - - -
Total Revenues - - - - -
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance - - - - -
Ending Fund Balance $ 5,891 $ 404 $ 5,891 $ 5,891 $ 5,891 This fund accounts for impact fees paid by development and are restricted to improving drainage within the City.

FUND: 231 DRAINAGE FACILITY
2022-23

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FUND SUMMARIES ATTACHMENT 1
2020-21
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,099,746 $ 1,151,565 $ 1,145,827 $ 1,172,327 $ 1,198,827 Revenues:

Revenues 46,081 26,500 26,500 26,500 26,500
Transfers In - - - - -
Total Revenues 46,081 26,500 26,500 26,500 26,500
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 46,081 26,500 26,500 26,500 26,500 Ending Fund Balance $ 1,145,827 $ 1,178,065 $ 1,172,327 $ 1,198,827 $ 1,225,327 This fund accounts for monies paid by developers in meeting the City's mandatory affordable housing requirements.

FUND: 232 IN-LIEU AFFORDABLE HOUSING
2022-23
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 19,943 $ 20,004 $ 19,658 $ 19,658 $ 19,658 Revenues:

Revenues (285) - - - -
Transfers In - - - - -
Total Revenues (285) - - - -
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance (285) - - - -
Ending Fund Balance $ 19,658 $ 20,004 $ 19,658 $ 19,658 $ 19,658 FUND: 233 IN-LIEU UNDERGROUND UTILITY
2022-23
This fund accounts for monies paid by developers in meeting the City's underground utility requirements.

Page 556 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 328,350 $ 325,075 $ 405,833 $ 383,583 $ 367,833 Revenues:

Revenues 290,014 147,650 270,750 309,750 319,050
Transfers In - - - - -
Total Revenues 290,014 147,650 270,750 309,750 319,050
Salaries and Benefits - - - -
Services and Supplies 204,527 221,500 285,000 275,500 275,500 Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out 8,004 8,000 8,000 50,000 50,000
Total Expenditures 212,531 229,500 293,000 325,500 325,500 Change in Fund Balance 77,483 (81,850) (22,250) (15,750) (6,450) Ending Fund Balance $ 405,833 $ 243,225 $ 383,583 $ 367,833 $ 361,383 FUND: 240 TOURISM BUSINESS IMPROVEMENT DISTRICT
The purpose of the Tourism Business Improvement District (TBID) is to provide projects, programs and activities that benefit lodging businesses located and operating within the City of Arroyo Grande. A two percent (2%) assessment is levied on all lodging businesses of the rent charged by the operator per occupied room per night for all transient occupancies.

Revenue collected is used to promote the lodging industry within the City. 2022-23
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,601,901 $ 45,950 $ 1,291,275 $ 0 $ 58,000 Revenues:

Revenues (13,048) 78,000 78,000 58,000 58,000
Transfers In - - - - -
Total Revenues (13,048) 78,000 78,000 58,000 58,000
Expenditures:

Services and Supplies - - - - -
Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out 297,578 700,000 1,369,275 - -
Total Expenditures 297,578 700,000 1,369,275 - -
Change in Fund Balance (310,626) (622,000) (1,291,275) 58,000 58,000 Ending Fund Balance $ 1,291,275 $ (576,050) $ 0 $ 58,000 $ 116,000 FUND: 241 WATER AVAILABILITY FUND
Pursuant to the provisions of Section 38743 of the Government Code, water availability charges is a “special charge” which is levied to each parcel of property not served with city water.

These charges are restricted for the sole purpose of expanding water supply such as desalination plant, recycled water, scalping plant, etc. 2022-23

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FUND SUMMARIES ATTACHMENT 1
2020-21
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 17,242 $ 17,242 $ 17,242 $ 17,242 17,242 Revenues:

Revenues - - 53,341 56,749 -
Transfers In - - - - -
Total Revenues - - 53,341 56,749 -
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - -
Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out - - 53,341 56,749 12,391
Total Expenditures - - 53,341 56,749 12,391
Change in Fund Balance - - - - (12,391)
Ending Fund Balance $ 17,242 $ 17,242 $ 17,242 $ 17,242 4,851 2022-23
FUND: 250 CDBG GRANT FUND
This fund accounts for revenues and expenditures related to Community Development Block Grant (CDBG) Funds. The program is a flexible program that provides the City with resources to address a wide range of unique community development needs.

Page 558 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL CURRENT PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ - $ 1,091,441 $ 1,545,875 $ 1,453,900 $ 0 Revenues:

Revenues 2,150,121 2,150,121 2,150,121 - -
Transfers In - - - - -
Total Revenues 2,150,121 2,150,121 2,150,121 - -
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 31,643 594,391 562,748 - -
Capital Outlay - - - - -
Transfers Out 572,603 1,745,590 1,679,348 1,453,900 -
Total Expenditures 604,246 2,339,981 2,242,096 1,453,900 - Change in Fund Balance 1,545,875 (189,861) (91,975) (1,453,900) - Ending Fund Balance $ 1,545,875 $ 901,580 $ 1,453,900 $ 0 $ 0 This fund accounts for American Rescue Plan Act (ARPA) funds. On March 11, 2021 President Biden signed ARPA into law. ARPA is intended to provide financial aid to families, governments, businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To support the immediate pandemic response, bring back jobs, and lay the groundwork for a strong and equitable recovery, ARPA established the Coronavirus State and Local Recovery Fund, designed to deliver $350 billion to state, local, territorial, and Tribal governments to bolster their response to the COVID-19 emergency and recover from the economic impacts caused by the public health crisis. This legislation provided $27 billion in federal money to the State of California. The State will allocate $1.2 billion to non-entitlement units of local government (NEUs). As an NEU, Arroyo Grande is eligible to receive $4,300,241.

FUND: 260 AMERICAN RESCURE PLAN ACT (ARPA)
2022-23
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 397,272 $ 388,071 $ 533,489 $ 377,289 $ 398,789 Revenues:

Revenues 158,663 140,800 140,800 140,800 140,800
Transfers In - - 4,000 - -
Total Revenues 158,663 140,800 144,800 140,800 140,800
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - 26,000 - -
Capital Outlay 22,446 - - - -
Transfers Out - 125,000 275,000 119,300 -
Total Expenditures 22,446 125,000 301,000 119,300 -
Change in Fund Balance 136,217 15,800 (156,200) 21,500 140,800 Ending Fund Balance $ 533,489 $ 403,871 $ 377,289 $ 398,789 $ 539,589 FUND: 271 STATE COPS BLOCK GRANT
2022-23
This fund accounts for the receipt and use of monies from the State of California restricted to the purchase of police equipment and technology for crime prevention.

Page 559 of 569 ends

FUND SUMMARIES ATTACHMENT 1

AGENCY FUNDS
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ (2,342,921) $ (2,567,372) $ (2,567,372) $ (2,569,372) $ (2,571,372) Revenues:

Revenues - 412,944 412,944 412,944 412,944
Transfers In - - - - -
Total Revenues - 412,944 412,944 412,944 412,944
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 6,854 2,000 2,000 2,000 2,000
Debt Service 182,943 382,944 382,944 382,944 382,944
Capital Outlay - - - - -
Transfers Out 30,000 30,000 30,000 30,000 30,000
Total Expenditures 219,797 414,944 414,944 414,944 414,944 Change in Fund Balance (219,797) (2,000) (2,000) (2,000) (2,000) Ending Fund Balance $ (2,562,718) $ (2,569,372) $ (2,569,372) $ (2,571,372) $ (2,573,372) 2022-23
FUND: 286 SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY This private-purpose trust fund was created to hold the assets of the former redevelopment agency of the City of Arroyo Grande until they are distributed to other units of state and local government after the payment of enforceable obligations have been made.

Page 560 of 569 ends

FUND SUMMARIES ATTACHMENT 1
2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,594,478 $ 1,620,934 $ 1,620,934 $ 1,619,534 $ 1,618,034 Revenues:

Revenues 27,859 - - - -
Transfers In - - -
Total Revenues 27,859 - - - -
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 1,491 1,400 1,400 1,500 1,500
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 1,491 1,400 1,400 1,500 1,500
Ending Fund Balance $ 1,620,847 $ 1,619,534 $ 1,619,534 $ 1,618,034 $ 1,616,534 FUND: 287 SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY - HOUSING FUNCTION This private-purpose trust fund was created to hold the housing assets of the former redevelopment agency of the City of Arroyo Grande until they are distributed to other units of state and local government after the payment of enforceable obligations have been made. 2022-23 2021-22
FINAL ORIGINAL PROJECTION 2023-24 2024-25

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 2,029 $ 4,819 $ 4,819 $ 147,019 $ 147,319 Revenues:

Revenues 11,352 8,500 152,500 11,000 11,000
Transfers In (104) - - -
Total Revenues 11,248 8,500 152,500 11,000 11,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 4,807 4,400 4,400 4,800 4,900
Capital Outlay - - - - -
Transfers Out 5,904 5,900 5,900 5,900 5,900
Total Expenditures 10,711 10,300 10,300 10,700 10,800
Ending Fund Balance $ 2,565 $ 3,019 $ 147,019 $ 147,319 $ 147,519 FUND: 751 DOWNTOWN PARKING
This agency fund collects assessments from Arroyo Grande Village merchants for the maintenance of the Village parking lots for the Downtown Village Merchants Association. 2022-23

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THEMES FROM INFRASTRUCTURE CATEGORY

MORE CROSSWALKS SAFE ROUTES TO AND

AROUND SCHOOLS

BIKE/PEDESTRIAN PATHS

AND LANES

TALLY HO BRIDGE WIDENING TRAFFIC CONTROL
5 question survey Survey went live January 3
513 total respondents
Survey closed February 20
Combination of multiple choice and
short response
Promoted on social media channels

STREET MAINTENANCE

FIXING POTHOLES CLEANING SIDEWALKS WHEELCHAIR AND STROLLER

ACCESSIBLE SIDEWALKS

FIXING POTHOLES

THEMES FROM PUBLIC SAFETY CATEGORY

SAFETY IN VILLAGE

INCREASED ENFORCEMENT

AND PATROLS

FUNDING FOR PUBLIC SAFETY
& EMERGENCY SERVICES

EXPANDED FIRE SERVICE REDUCE CRIME POLICE REFORM

SURVEILLANCE CAMERAS
2023 ARROYO GRANDE COMMUNITY PRIORITIES

SURVEY RESULTS
Attachment 2

Page 562 of 569 ends

THEMES FROM ECONOMIC DEVELOPMENT/THE VILLAGE CATEGORY

PROTECT AGRICULTURAL LAND MORE AFFORDABLE RESTAURANTS
IMPLEMENT A "BUY LOCAL"

PROGRAM

ATTRACT NEW BUSINESSES CONSIDER CANNABIS SALES CREATE A MAKERSPACE

REMOVE VRBO RESTRICTIONS PROMOTE/GROW TOURISM

FILL EMPTY VILLAGE

STOREFRONTS

FASTER DEVELOPMENT PROJECT

APPROVAL

LIMIT GROWTH/KEEP SMALL TOWN
FEEL

REMOVE PARKLETS/IMPROVE

QUALITY OF PARKLETS

THEMES FROM EVENTS/PARKS AND RECREATION CATEGORY

MORE OFF LEASH DOG PARKS

REPAIR DAMAGED PARK

STRUCTURES

MORE ROLLER SKATING

OUTDOOR FITNESS EQUIPMENT

FOR ADULTS

SOCIAL/REC OPPORTUNITIES FOR

SENIORS

BRING BACK STRAWBERRY

FESTIVAL

MORE YOUNG ADULT/TEEN

PROGRAMMING

MORE YOUTH SPORTS PROGRAMS MORE PICKLEBALL COURTS

OPEN SOTO SPORTS COMPLEX

EARLIER

MORE COMMUNITY EVENTS MORE TRAILS AND OPEN SPACES

THEMES FROM HOMELESS/AFFORDABLE HOUSING CATEGORY

HOUSING FOR LOW INCOME AND

SENIORS

ADDRESS HOMELESSNESS AND

ENCAMPMENTS

MORE AFFORDABLE HOUSING

PROVIDE HOMELESS SHELTER

OUTREACH AND SERVICES FOR

MENTALLY ILL

APPROVE MORE HOUSING
ENFORCE LAWS RE: PUBLIC

CAMPING/DEFECATION

THEMES FROM WATER SECURITY CATEGORY

REDUCE WATER COST LOCAL DESALINATION PLANT

WATER AVAILABILITY AND

STORAGE

WATER AWARENESS

SECURE MORE WATER RIGHTS,
WELLS
Q. 5 ANY COMMENTS OR
SUGGESTIONS?
Many answered fell into the broad categories from question 3, but some themes of the responses that fit outside of those categories are below.

BUILD SUSTAINABLE LONG-TERM
BUDGET
286 SKIPPED

COMBINE PUBLIC RESOURCES WITH

REGIONAL PARTNERS

GRATITUDE FOR CITY SERVICES

THANFULNESS FOR SURVEY LOVE FOR ARROYO GRANDE DIVERSITY/INCLUSION

MORE OUTREACH TO COMMUNITY &

MARKETING CAMPAIGNS

REDUCE UTILITY COST/BURDEN

CONSIDER ADDING SOCIAL WORKER TO

POLICE TO HELP WITH HOMELESS

SUPPORT FARMING COMMUNITY KEEP THE ROOSTERS BY THE CREEK

EASIER WAY TO REPORT CODE

VIOLATIONS
227 ANSWERED
IMPLEMENT A "BUY LOCAL"

PROGRAM

Page 563 of 569 ends

Goal Strategy Task/Action Carryover Action or New Responsible Department Anticipated to Start Completion Target Funding 1. 1 Economic Development 1.1a Evaluate Economic Development Management Services New CMO 1Q FY2023-24 2Q FY 2023-24

1.1b Obtain Economic Development Management Services New CMO 3Q FY 2023-24 3Q FY 2023-24

1.1c Support Modifications to the AGTBID New CMO/CA/RS/LIS In Progress 2Q FY 2023-24

1.1c.i. Transition Administration to City staff New CMO/RS In Progress 1Q FY 2023-241.1c.ii. Complete Modifications to AGTBID Bylaws and Advisory Board Structure New CMO/CA/LIS In Progress 2Q FY 2023-24

1.1d 400 W. Branch Disposition and Development Agreement New CMO/CA/CD In Progress 4Q FY 2023-241.1e Complete Transition of Temporary Parklets to Permanent Parklets Carryover CD/PW In Progress 1Q FY2023-241.1f Develop 1-3 Special Events that drive visitation duringshoulder and winter months and build destination awareness New Rec In Progress 4Q FY 2023-24

1.2 Pursue Revenue Measure 1.2a Issue an RFP for a consultant to develop a survey and outreach strategy to community New CMO/LIS 1Q FY2023-24 1Q FY2023-24

1.2b Award contract with consultant to develop a survey and outreach strategy to community New CMO/LIS 1Q FY2023-24 1Q FY2023-241.2c Conduct public outreach to the community to communicate need for additional revenue, including facilitation of a Citizen Committee Carryover CMO/LIS 1Q FY2023-24 2Q FY 2024-25

1.2d Bring Revenue ballot measure to Council for approval Carryover CMO/AS/LIS 4Q FY 2024-25 4Q FY 2024-25

1.3 Evaluate Potential to Enable Cannabis Businesses within City

1.3a Conduct study session with the City Council regarding potential cannabis ordinance Carryover CD/CA/CMO 3Q FY 2023-24 3Q FY 2023-24

1.3b Prepare and adopt cannabis ordinance, if directed by the City Council New CD/CA/CMO 3Q FY 2023-24 1Q FY 2024-251.3c Evaluate feasibility of a Cannabis Tax New CD/AS/CA/CMO 3Q FY 2023-24 1Q FY 2024-25 Fire Services 2.1 Work with Regional Partners on Fire Services in 5 Cities 2.1a Pursue potential contract with the County to serve Oceano New Fire/CMO 3Q FY 2023-24 4Q FY 2023-24

2.2 Funding for Fire Services 2.2a Consider including Public Safety in proposed Revenue measure New CMO/AS/LIS 4Q FY 2024-25 4Q FY 2024-25 Infrastructure 3.1 Pursue Alternative Funding Sources for Infrastructure Needs 3.1a Consider Community partnership for Mark M. Millis Community Center construction Carryover CMO/Rec/PW In progress 4Q FY 2023-24

3.1b Include infrastructure in new Revenue Measure plans and outreach Carryover AS/CMO/LIS/ PW/CD 1Q FY 2023-24 4Q FY 2024-253.1c Collect FEMA reimbursement for January - March 2023 storm damage New AS In progress 1Q FY2023-24

3.1d Pursue Grant applications and administration for infrastructure projects Carryover PW/CD/AS In progress Ongoing

3.2 Work with Regional Partners on Infrastructure Projects

3.2a Support ongoing development and financing of Central Coast Blue project Carryover CMO/AS/PW In Progress Ongoing

3.2b NCMA Management Agreement Amendments New PW 3Q FY 2023-24 Ongoing FY 2023-25 Council Goal's Work Plan
Attachment 3

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Goal Strategy Task/Action Carryover Action or New Responsible Department Anticipated to Start Completion Target FY 2023-25 Council Goal's Work Plan

3.3 Prioritize Key Infrastructure Projects 3.3a Traffic Way Bridge Carryover CD/PW In progress 2Q FY 2025-26

3.3a.i. Traffic Way Bridge DesignCarryover CD/PW In progress 4Q FY 2023-24

3.3a.ii. Traffic Way Bridge ROW Carryover CD/PW 1Q FY 2023-24 3Q FY 2023-24

3.3a.iii. Traffic Way Bridge Construction Carryover CD/PW 3Q FY 2024-25 2Q FY 2025-263.3b Swinging Bridge Rehabilitation Carryover CD/PW

3.3b.i. Swinging Bridge Rehabilitation NEPA Carryover CD/PW In progress 2Q FY 2023-24

3.3bii Swinging Bridge Rehabilitation Bid for Construction Carryover CD/PW 3Q FY 2023-24 3Q FY 2023-24

3.3b.iii. Swinging Bridge Construction New CD/PW 3Q FY 2024-25 2Q FY 2025-26

3.3c Halcyon Complete Streets New CD/PW3.3c.i. Halcyon Complete Streets Design acquisition New CD/PW 1Q FY 2023-24 1Q FY 2024-253.3c.ii. Halcyon Complete Streets ROW acquisition New CD/PW 1Q FY 2023-24 1Q FY 2024-253.3c.iii. Halycon Complete Streets Construction New CD/PW 1Q FY 2024-25 2Q FY 2025-263.3d ATP Development New CD/PW3.3d.i. Award ATP Contract to Consultant New CD/PW 4Q FY 2022-23 4Q FY 2022-233.3d.ii. Final Approval of ATP by Council New CD/PW 3Q FY 2024-25 3Q FY 2024-253.3e 2022 Pavement Management Program Construction New CD/PW 1Q FY 2023-24 2Q FY 2023-243.3f 2024 Pavement Management Program DesignNew CD/PW 2Q FY 2023-24 3Q FY 2023-243.3g 2024 Pavement Management Program Construction New CD/PW 4Q FY 2023-24 1Q FY 2024-253.3h Public Safety Video Cameras Carryover Police/CD In Progress 4Q FY 2024-25

3.3i Replacement Generator at Station 1 New CD/PW/Fire 4Q FY 2022-23 4Q FY 2023-24

3.3j Lift Station 3 New CD/PW 1Q FY 2023-24 1Q FY 2024-25

3.3k AG Creek Remediation (Debris removal and bank stabilization) New CD/PW 4Q FY 2022-23 4Q FY 2023-24

3.3l Concrete Repair Program New CD/PW 1Q FY 2024-25 4Q FY 2024-25

3.3m Concept plan/design for new Mark M. Millis Community Center Building New CD/PW 1Q FY 2023-24 4Q FY 2023-24

3.3n CMP Lining New CD/PW 1Q FY 2024-25 Ongoing

4.1 Objective Design Standards Carryover CD/CA 1Q FY 2023-24 3Q FY 2025-26

4.2 Diversity Equity Iinclusivity Justice Lens 4.2a Management of DEIJ consultant New CD In Progress Ongoing

4.3 General Plan Elements New CD 2Q FY 2023-24 3Q FY 2024-254.4 Baseline Analysis of Existing and Future Business Needs 4.4a Survey Local Businesses Carryover CD 1Q FY 2023-24 4Q FY 2023-24

4.4b Conduct a Retail Market Analysis New CD 1Q FY 2023-24 4Q FY 2023-24

4.5 Climate Action Plan New CD 2Q FY 2023-24 3Q FY 2025-264.5 Code Update 4.5a Bring code changes to Planning Commission for approval New CD 3Q FY 2025-26 3Q FY 2025-26

4.5b Bring draft Ordinance of code revision update to Council New CD 4Q FY 2025-26 4Q FY 2025-26

4.6 ADU Policy 4.6a Draft ADU Ordinance New CD In progress 1Q FY 2023-24

4.6b Bring ADU Ordinance to Planning Commision for Approval New CD 2Q FY 2023-24 2Q FY 2023-244.6c Bring ADU Ordinance to Council for Approval New CD 3Q FY 2023-24 3Q FY 2023-24

4.7 EIR 4.7a Complete draft EIR New CD 1Q FY 2024-25 3Q FY 2024-25

4.7b Complete final EIR New CD 3Q FY 2024-25 4Q FY 2024-25

4.8 Public Outreach 4.8a Plan and Host a Kick-Off Meeting with Community New CD/LIS 1Q FY 2023-24 1Q FY 2023-24 CMO City Manager's Office
AS Administrative Services
LIS Legislative and Information Services
PD Police Department
PW Public Works
Rec Recreation Services
Fire Five Cities Fire Authority
CD Community Development
Key
General Plan
Update
Infrastructure
(continued)

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MEMORANDUM
TO: City Council
FROM: Michael Martinez, Chief of Police
Nicole Valentine, Administrative Services Director
SUBJECT: Supplemental Information
Agenda Item 12.a. – May 23, 2023 City Council Meeting
Review Preliminary FY 2023-25 Biennial Operating Budget DATE: May 23, 2023
The Police Department is requesting that funding identified in the preliminary budget for the Police Services Technician (PST) position be postponed from FY 2023-24 to FY 2024- 25 to assist in focusing efforts on the City’s Compensation Study during FY 2023-24 as shown in the updated Table 4 below.

Table 4 – Proposed Staffing Changes
The PST position was identified as a service that would greatly benefit the community based on an increase in parking complaints; responding to nonemergent calls for service such as noninjury traffic collisions, property crime reports; and facilitating crime prevention program requests. The feedback received has indicated a need for more community engagement in order to identify problems and co-produce tangible solutions to these issues. The PST has been identified as a position that would enhance the partnership between the public and the police department.

As a result of this postponement Table 2, Table 3, Chart 3, Chart 4, Table 8, and Table 9, have been updated.

Salaries & Benefits FY 2023-24 FY 2024-25
Police Service Technician (PST) - 108,300
FT Recreation Supervisor 65,400 67,700
Total 176,000 65,400

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Table 2 – General Fund Budget & Available Fund Balance in thousands Even with the proposed expenditures, FY 2024-25 is projected to end with a fund balance of $8.2 million, which represents 35.9% of total operating expenditures in the General Fund. This will be $3.6 million above the reserve policy guideline of 20%.

Table 3 – FY 2023-25 Consolidated General Fund Budget & Available Fund Balance in thousands
The projected fund balance for the Consolidated General Fund at the end of FY 2024-25 is $9,907,154 or 36.3%. This leaves approximately $3,710,000 in funds available that could be allocated from fund balance and still achieve the 20% reserve goal. 2023‐24 2024‐25
2021‐22 ADOPTED PROJECTED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $8,272 $7,999 $10,823 $9,176 $8,695 Revenues 18,405 17,888 19,092 18,544 19,000 Transfers In 2,993 3,013 3,013 3,114 3,185 Total Revenues 21,398 20,901 22,105 21,658 22,185 Salaries and Benefits 10,851 13,804 14,164 12,089 12,437 Services and Supplies 6,455 7,199 7,352 9,385 9,725 Debt Service 129 286 286 310 294 Capital Outlay 13 454 359 240 150 Transfers Out 1,399 1,536 1,591 115 115 Total Expenditures 18,847 23,279 23,752 22,139 22,721 Total Operating Incr/(Decr) 2,551 (2,378) (1,647) (481) (536) Available Fund Balance $10,823 $5,621 $9,176 $8,695 $8,159 Reserve % 57.4% 24.1% 38.6% 39.3% 35.9%
$ Above Reserve Policy $7,054 $965 $4,426 $4,268 $3,616 2022‐23

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Chart 3 – FY 2023-24 Consolidated General Fund Expenditures by Department - $24.9 million
This reduction in expenditures does not impact the overall percentage allocated to the Police Department. This Chart was included to demonstrate that it was reviewed as the reduction in expenditures does impact Chart 3.

Chart 4 – FY 2023-24 Consolidated General Fund Expenditures by Department - $24.9 million
The Police section has been reduced by $104,600.

Section Appropriation of Excess Available Consolidated General Fund Balance Paragraph 2 has been updated:

At the end of FY 2024-25, the projected fund balance is approximately $4,445,000 greater than the 20% goal. Because the act of allocating excess reserves adds to budgeted expenditures, the amount available to spend while keeping the reserve at 20% is $3,710,000. This is the amount staff recommends discussing and potentially providing direction to appropriate as part of this item.

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Table 8 Proposed FY 2023-24 Budget
Summary section Proposed FY 2023-24 Budget recommends approximately $43.6 million in expenditures shown in Table 8.

Table 9 Proposed FY 2024-25 Budget
Summary section Proposed FY 2024-25 Budget recommends no changes to the approximately $45 million in expenditures shown in Table 9 but does reflect changes in the Beginning Fund Balance for General Fund and Available Fund Balance for General Fund.
cc: City Manager
City Attorney
City Clerk
City Website and Public Review Binder

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Arroyo Grande City CouncilMay 23, 2023

Arroyo Grande City Council
May 23, 2023