Arroyo Grande City Council
August 12, 2025

CITY COUNCIL MEETING

AGENDA SUMMARY

Tuesday, August 12, 2025, 5:00 p.m.

In person at:

Arroyo Grande City Council Chamber
215 E. Branch Street, Arroyo Grande, CA 93420
AND via Zoom at:
https://arroyogrande-org.zoom.us/webinar/register/WN_NRsyFrUIQ_6179_iBTyDVA Please click the link above to register to join the Zoom Meeting This City Council meeting is being conducted in a hybrid in-person/virtual format. Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time. Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for any reason. Members of the public may participate and provide public comment on agenda items during the meeting in person at the location identified above, by joining the Zoom meeting, or by submitting written public comments to the Clerk of the Council at [email protected]. Meetings will be broadcast live on Channel 20 and streamed on the City’s Website.

CLOSED SESSION: 5:00 P.M.:

1. CALL TO ORDER

2. ROLL CALL

3. FLAG SALUTE

4. PUBLIC COMMENT ON CLOSED SESSION ITEMS

5. CLOSED SESSION
The City Council will recess to a closed session for the following and will report any reportable action at the City Council Regular meeting at 6:00 p.m.:
a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION:
(Paragraph (2) of subdivision (d) of Government Code § 54956.9) Name of Case: San Luis Obispo Coastkeeper, et. al v. County of San Luis Obispo, U.S. District Court Central District of California (Western Division – Los Angeles), Case No. 2:24-cv-06854-SPG-AS

6. ADJOURNMENT
REGULAR MEETING 6:00 P.M.

1. CALL TO ORDER

2. ROLL CALL

3. MOMENT OF REFLECTION

4. FLAG SALUTE

5. AGENDA REVIEW

5.a Closed Session Announcements
The City Council will recess to a closed session for the following and will report any reportable action at the City Council Regular meeting at 6:00 p.m.:
a) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION:
(Paragraph (2) of subdivision (d) of Government Code § 54956.9) Name of Case: San Luis Obispo Coastkeeper, et. al v. County of San Luis Obispo, U.S.

District Court Central District of California (Western Division – Los Angeles), Case No. 2:24- cv-06854-SPG-AS

5.b Ordinances read in title only
Recommended Action:

Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived.

6. SPECIAL PRESENTATIONS

6.a City Manager Communications
(DOWNING)
Recommended Action:

Receive correspondence/comments as presented by the City Manager and Provide direction, as necessary.

7. CITY COUNCIL REPORTS

8. COMMUNITY COMMENTS AND SUGGESTIONS
This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. Members of the public may provide public comment in-person or remotely by registering and joining the Zoom meeting utilizing the link provided below. Once in the meeting, please use the “raise hand” feature to indicate your desire to provide public comment.

Click the link below to register to join the webinar: https://arroyograndeorg.zoom.us/webinar/register/WN_NRsyFrUIQ_6179_iBTyDVA •
After registering, you will receive a confirmation email containing information about joining the webinar.
•
Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time.

Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for any reason. Please attend in person or submit your comment via email to the City Clerk by 2:00 p.m. the day of the meeting to have it included as part of the record.

The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may:

• Direct City staff to assist or coordinate with you.
• A Council Member may state a desire to meet with you.

It may be the desire of the Council to place your issue or matter on a future Council agenda.
•
Please adhere to the following procedures when addressing the Council:
• Comments should be limited to 1 minute or less.

Your comments should be directed to the Council as a whole and not directed to individual Council members.
•
Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted.
•

9. CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of action. The City Council may approve the remainder of the Consent Agenda on one motion.

9.a Cash Disbursement Ratification
(VALENTINE)
Recommended Action:

Review and ratify the attached listing of cash disbursements for the period of July 1 through July 15, 2025.

9.b Statement of Investment Deposits for June 2025
(VALENTINE)
Recommended Action:

Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of June 30, 2025, as required by Government Code Section 53646(b).

9.c Receive and File the Biennial Budget Book for Fiscal Years (FY) 2025-27 (VALENTINE)
Recommended Action:

Receive and file the City of Arroyo Grande Biennial Budget Book for Fiscal Years (FY) 2025-27.

9.d Approval of Minutes
(MATSON)
Recommended Action:

Approve the minutes of the Regular City Council Meeting of July 22, 2025, as submitted.

9.e Appointment of a Voting Delegate and Alternate for the League of California Cities Annual Conference
(MATSON)

Recommended Action:

Appoint Mayor Ray Russom as the voting delegate and Council Member Guthrie as the alternate for the League of California Cities Annual Conference; and authorize submittal by the City of the League of California Cities’ Voting Delegate/Alternate Form.

9.f Confirmation of Appointment of David Culver as Chief of Police (DOWNING)
Recommended Action:

Confirm the appointment of David Culver as the Chief of Police, effective August 15, 2025.

9.g Subscription Agreement with Safe Fleet’s COBAN NEXUS Cloud Platform Data Storage System
(CULVER)
Recommended Action:
1) Adopt a Resolution approving and authorizing the City Manager to execute the five-year Safe Fleet Nexus Customer Subscription Agreement in an amount not-to-exceed $178,502, subject to any minor, technical, or non-substantive changes as approved by the City Manager in consultation with the City Attorney; and
2) Find that adopting the Resolution is not a project subject to the California Environmental Quality Act (“CEQA”) because approval of a software subscription agreement does not in itself have potential to result in either a direct, or reasonably foreseeable indirect, physical change to the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)

9.h Agreement with the California Office of Traffic Safety (CULVER)
Recommended Action:
1) Adopt a Resolution authorizing the Chief of Police to execute a grant agreement with the California Office of Traffic Safety (OTS) to accept grant funding for traffic safety programs; 2) Approve a Budget Amendment Request for FY 2025-26 in the amount of $80,000 to account for the additional revenue and expenditures related to the grant; and 3) Find that adopting the Resolution is not a project subject to the California Environmental Quality Act (“CEQA”) because adopting the Resolution does not in itself have potential to result in either a direct, or reasonably foreseeable indirect, physical change to the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)

9.i Temporary Use Permit 25-005; Authorization for the 86th Annual Arroyo Grande Valley Harvest Festival, Friday and Saturday September 26-27, 2025; Location – Heritage Square Park and Olohan Alley
(PEDROTTI)
Recommended Action:
1) Adopt a Resolution approving Temporary Use Permit 25-005, authorizing closure of City streets, sale of alcohol, waiver of fees, and use of City property for the 86th Annual Arroyo Grande Valley Harvest Festival, Friday and Saturday, September 26-27, 2025; and 2) Find the action exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15304 of the CEQA Guidelines.

10. PUBLIC HEARINGS

10.a Public Hearing to Consider Amending the Authorized Uses of the Arroyo Grande Tourism Business Improvement District (AGTBID) Funds and Amending the Arroyo Grande Municipal Code
(BOHLKEN)
Recommended Action:
1) Conduct a public hearing to receive public comment and any protests regarding the City Council’s intention to amend authorized improvements and activities funded by assessments imposed through the Arroyo Grande Tourism Business Improvement District (AGTBID);
2) Determine whether a majority protest has been received; if no majority protest has been received:
a. Adopt a Resolution to make modifications to the authorized uses funded by assessments imposed through the AGTBID, and directing the introduction of an ordinance amending Chapter 3.46 of the Arroyo Grande Municipal Code, b. Introduce an Ordinance for first reading to amend Chapter 3.46 of the Municipal Code authorizing amendments to authorized uses of AGTBID funds; and 3) Find that the recommended actions to support the Arroyo Grande Tourism Business Improvement District are not subject to the California Environmental Quality Act (“CEQA”) because these efforts have no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, §§ 15060 (c)(2) and (3), 15378).

11. BUSINESS ITEMS

11.a 2024 Annual Report for the Northern Cities Management Area and City Water Supply and Future Resources Evaluation Update
(ROBESON)
Recommended Action:
1) Receive and file the 2024 Northern Cities Management Area (NCMA) Annual Report; and
2) Receive and file this update on water supply for current and upcoming needs.

12. COUNCIL COMMUNICATIONS
Any Council Member may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council policies and procedures, Council Members may request staff to report back to the Council at a subsequent meeting concerning any matter or request that staff place a matter of business on a future agenda. Any request to place a matter of business for original consideration on a future agenda requires the concurrence of at least two other Council Members.

13. ADJOURNMENT
All staff reports or other written documentation, including any supplemental material distributed to a

majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Legislative and Information Services Department at 805-473-5400 as soon as possible and at least 48 hours prior to the meeting date.

This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you would like to subscribe to receive email or text message notifications when agendas are posted, you can sign up online through the “Notify Me” feature.

City Council Meetings are streamed live on the City’s Website and recorded for replay on Arroyo Grande’s Government Access Channel 20.

Item 9.a.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Finance Manager
SUBJECT: Cash Disbursement Ratification
DATE: August 12, 2025
RECOMMENDATION:

Review and ratify the attached listing of cash disbursements for the period of July 1 through July 15, 2025.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is a $2,684,352.11 fiscal impact for the period of July 1 through July 15, 2025, that includes the following items:
 Accounts Payable Checks $2,163,086.75
 Payroll & Benefit Checks $521,265.36
BACKGROUND:

Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff review all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City’s Purchasing Policies and Procedures Manual.

ANALYSIS OF ISSUES:

The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in FY 2024-25 and FY 2025-26 budget.

ALTERNATIVES:

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

1. Approve staff’s recommendation;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

Item 9.a.

City Council
Cash Disbursement Ratification
August 12, 2025

ADVANTAGES:
 The Administrative Services Department monitors payments of invoices for accountability, accuracy, and completeness using standards approved by the City Council.
 Invoices are paid in a timely manner to establish goodwill with merchants.  Discounts are taken where applicable.

DISADVANTAGES:

There are no disadvantages identified in this recommendation.

ENVIRONMENTAL REVIEW:

Ratifying the cash disbursements 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. (c)(2)-(3), 15378.)
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. July 1 through July 15, 2025 – Accounts Payable Check Register

2. July 11, 2025 – Payroll & Benefit Check Register

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:070125 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 115009 ADEPT EVENTS LLC
305171 P 07/01/25 10044424 5353 SERVICES-EVENTS 1,150.00 305172 P 07/01/25 10044424 5353 SERVICES-EVENTS 1,150.00 114350 LYNN MUSIC
305173 P 07/01/25 10044424 5353 SERVICES-EVENTS 1,800.00 116415 MILLER, CHE
305174 P 07/01/25 10044424 5353 SERVICES-EVENTS 1,400.00 113441 SCHMIDT, SHELLY LYNN
305175 P 07/01/25 10044424 5353 SERVICES-EVENTS 200.00
115010 UNFINISHED BUSINESS
305176 P 07/01/25 10044424 5353 SERVICES-EVENTS 1,250.00 REPORT TOTALS 6,950.00

COUNT AMOUNT
TOTAL PRINTED CHECKS 6 6,950.00
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:070325 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 111452 A-TOWN AUDIO VIDEO
305177 P 07/03/25 10014140 5303 CONTRACTUAL SERVICES 11,950.00

114977 BLACK, JACOB
305178 P 07/03/25 10034201 5502 TUITION & REIMBURSEMENT 597.48

113890 BOONE PRINTING & GRAPHICS INC
305179 P 07/03/25 10014102 5255 SPECIAL DEPARTMENT SUPPLIE 295.25 305179 P 07/03/25 10054307 5201 SUPPLIES-OFFICE 57.62

114237 ESTRADA, ANTHONY
305180 P 07/03/25 10034201 5502 TUITION & REIMBURSEMENT 459.00

100208 JB DEWAR, INC
305181 P 07/03/25 10034203 5608 GAS & OIL 18.75

115070 JD ELECTRIC
305182 P 07/03/25 10054308 5303 CONTRACTUAL SERVICES 1,250.00

116375 MEJIA JR, ALEJANDRO
305183 P 07/03/25 10044424 5352 SERVICES-LEAGUES 495.00

115783 MINTIER HARNISH LP
305184 P 07/03/25 10024130 5303 CONTRACTUAL SERVICES 36,126.44

100481 PACIFIC GAS & ELECTRIC CO
305185 P 07/03/25 64054711 5402 POWER 35.95

104158 PHOENIX GROUP
305186 P 07/03/25 10034204 5303 CONTRACTUAL SERVICES 202.46

Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:070325 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 114729 PIERCE, GREGORY
305187 P 07/03/25 10034201 5502 TUITION & REIMBURSEMENT 2,000.00

116430 PIERCE, JESSE
305188 P 07/03/25 10034201 5502 TUITION & REIMBURSEMENT 2,000.00

115677 POSITIVE RIDE JAMS INC
305189 P 07/03/25 10014001 5395 COMMUNITY SERVICES GRANT 2,500.00

103757 PVP COMMUNICATIONS, INC
305190 P 07/03/25 10034204 5272 PROTECTIVE/SAFETY CLOTHING 1,427.89

116433 SANTA MARIA POLICE EXPLORER POST #115
305191 P 07/03/25 100 2027 DONATIONS-PD/EXPLORERS 300.00

100552 SLO COUNTY AUDITOR-CONTROLLER
305192 P 07/03/25 10004000 4203 PARKING FINES 380.00

109975 THOMSON REUTERS WEST
305193 P 07/03/25 10034201 5503 MEMBERSHIPS & SUBSCRIPTION 431.00

116117 TRANS UNION LLC
305194 P 07/03/25 10034204 5303 CONTRACTUAL SERVICES 38.68

102137 VERIZON WIRELESS
305195 P 07/03/25 10014145 5403 TELECOMMUNICATIONS 76.02 305195 P 07/03/25 10034201 5403 TELECOMMUNICATIONS 1,452.88 305195 P 07/03/25 10044421 5602 MAINTENANCE-OFFICE EQUIPME 38.01

REPORT TOTALS 62,132.43

COUNT AMOUNT
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION

TOTAL PRINTED CHECKS 19 62,132.43
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 116425 10-8 RETROFIT INC
305196 P 07/10/25 10034203 5601 MAINTENANCE-VEHICLES 374.39

111452 A-TOWN AUDIO VIDEO
305197 P 07/10/25 35505140 7001 CONSTRUCTION 129,043.05

115009 ADEPT EVENTS LLC
305198 P 07/10/25 10044424 5353 SERVICES-EVENTS 1,150.00

103175 AQUA-METRIC SALES CO
305199 P 07/10/25 64054712 5611 MAINTENANCE-METERS 2,146.39

116307 ATLAS PERFORMANCE INDUSTRIES INC
305200 P 07/10/25 10014145 5553 RENT-BUILDINGS & LAND 2,100.00

114310 BACK ON THE ROAD AUTOMOBILE
305201 P 07/10/25 64054712 5601 MAINTENANCE-VEHICLES 1,128.29

107492 BATTERY SYSTEMS
305202 P 07/10/25 10034203 5601 MAINTENANCE-VEHICLES 1,247.65

113248 BEATTY, IRINA
305203 P 07/10/25 10044424 5351 SERVICES-CLASSES 176.00

116298 BLUE HIGHWAYS PRODUCTIONS LLC
305204 P 07/10/25 24014150 5301 ADVERTISING 600.00

113890 BOONE PRINTING & GRAPHICS INC
305205 P 07/10/25 10034201 5201 SUPPLIES-OFFICE 373.10

101577 BURDINE PRINTING
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 305206 P 07/10/25 10014102 5255 SPECIAL DEPARTMENT SUPPLIE 563.61 305206 P 07/10/25 35055679 5504 PUBLIC RELATIONS 166.78 305206 P 07/10/25 64054710 5201 SUPPLIES-OFFICE 3,616.15

103775 CALIFORNIA JPIA
305207 P 07/10/25 100 1111 ACCOUNTS RECEIVABLE - FCFA 467,366.00 305207 P 07/10/25 10014145 5141 WORKERS COMPENSATION 527,282.00 305207 P 07/10/25 10014145 5576 LIABILITY INSURANCE-JPA SH 847,834.00

116287 CANTRELL, ROBERT
305208 P 07/10/25 10044424 5353 SERVICES-EVENTS 1,200.00

113129 CHARTER COMMUNICATIONS
305209 P 07/10/25 10014140 5303 CONTRACTUAL SERVICES 1,349.00 305209 P 07/10/25 10014145 5401 UTILITIES 3,260.35
305209 P 07/10/25 21114101 5330 CABLE CASTING EXPENSE 1,349.00

112476 COAST TO COAST
305210 P 07/10/25 10014102 5201 SUPPLIES-OFFICE 478.48

109431 CUDDY, GAYLE
305211 P 07/10/25 10044424 5351 SERVICES-CLASSES 394.80

110047 DOHERTY, STEPHEN
305212 P 07/10/25 10034201 5502 TUITION & REIMBURSEMENT 510.00

116158 DULCE VALERIO FASHION
305213 P 07/10/25 10034204 5272 PROTECTIVE/SAFETY CLOTHING 538.00

115691 EASTER, RAYMON
305214 P 07/10/25 10034201 5502 TUITION & REIMBURSEMENT 1,020.00

116334 ECOLOGISTICS INC
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 305215 P 07/10/25 10044424 5351 SERVICES-CLASSES 84.00

112834 ESPARZA, ELIA
305216 P 07/10/25 10034201 5502 TUITION & REIMBURSEMENT 2,000.00

114237 ESTRADA, ANTHONY
305217 P 07/10/25 10034201 5502 TUITION & REIMBURSEMENT 459.00

107743 FAMCON PIPE AND SUPPLY INC
305218 P 07/10/25 64054712 5610 MAINTENANCE-LINES & PUMPS 5,467.95

113533 FIVE CITIES DUPLICATE BRIDGE
305219 P 07/10/25 10044424 5351 SERVICES-CLASSES 787.50

109851 FRYER, ELIZABETH
305220 P 07/10/25 10044424 5351 SERVICES-CLASSES 924.00

114439 GUIDOTTI, NICHOLE
305221 P 07/10/25 10044424 5351 SERVICES-CLASSES 4,588.00

100301 HEACOCK TRAILERS
305222 P 07/10/25 64054712 6301 VEHICLES 751.00

115509 HUCKABEY, APRIL
305223 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00

116197 LARIOS, ISARRA
305224 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00

114764 LEONG, PRINCESS
305225 P 07/10/25 10044424 5351 SERVICES-CLASSES 436.00 Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION

116154 LIBORIO, VICTORIA
305226 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00

116194 MAHARRY, JENNIFER
305227 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00

116323 MAULE, TAMMY L CROSS
305228 P 07/10/25 10044424 5351 SERVICES-CLASSES 268.80

116381 MINDS IN MOTION LLC
305229 P 07/10/25 10044424 5351 SERVICES-CLASSES 1,320.00

115510 MIRANDA, ANGIE
305230 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00

115763 MOBILEWORKS OF SANTA MARIA
305231 P 07/10/25 10034201 5601 MAINTENANCE-VEHICLES 197.00

114042 NELSON, NICCOLA
305232 P 07/10/25 10044424 5351 SERVICES-CLASSES 358.40

114380 NETFILE INC
305233 P 07/10/25 10014002 5303 CONTRACTUAL SERVICES 3,570.00

111807 OATES, SARAH
305234 P 07/10/25 10004000 4607 SPECIAL EVENTS 75.00

113509 OFFICE1
305235 P 07/10/25 10034204 5602 MAINTENANCE-OFFICE EQUIPME 813.22 Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION

999999 ONE TIME PAY
305236 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 50.00
305237 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305238 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305239 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305240 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 169.00 305241 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305241 P 07/10/25 10004000 4354 PARK USER FEES 440.00
TOTAL FOR 305241 490.00
305242 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305243 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305244 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 115.00 305245 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 470.00 305246 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305247 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 150.00 305248 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305249 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305250 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305251 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 100.00 305252 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 50.00
305253 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305254 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305255 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305256 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305257 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305258 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305259 P 07/10/25 10004000 4608 SOFTBALL LEAGUE 635.00
305260 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305261 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305262 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305263 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 308.00 305264 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 315.00 305265 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305266 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305267 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00 305268 P 07/10/25 22654306 5554 REBATES 583.00
305269 P 07/10/25 10004000 4607 SPECIAL EVENTS 30.00
305270 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00

999997 ONE TIME PAY REFUND
305271 P 07/10/25 640 2301 DEPOSIT RENTERS 124.43
305272 P 07/10/25 640 2301 DEPOSIT RENTERS 107.03
305273 P 07/10/25 640 2301 DEPOSIT RENTERS 9.75
305274 P 07/10/25 640 2301 DEPOSIT RENTERS 123.80
305275 P 07/10/25 640 2301 DEPOSIT RENTERS 153.03
305276 P 07/10/25 640 2301 DEPOSIT RENTERS 106.40
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 305277 P 07/10/25 640 2301 DEPOSIT RENTERS 11.27
305278 P 07/10/25 640 2301 DEPOSIT RENTERS 142.16
305279 P 07/10/25 640 2301 DEPOSIT RENTERS 59.34
305280 P 07/10/25 640 2301 DEPOSIT RENTERS 142.01
305281 P 07/10/25 640 2301 DEPOSIT RENTERS 176.90
305282 P 07/10/25 640 2301 DEPOSIT RENTERS 10.07
305283 P 07/10/25 640 2301 DEPOSIT RENTERS 18.05
305284 P 07/10/25 640 2301 DEPOSIT RENTERS 20.41
305285 P 07/10/25 640 2301 DEPOSIT RENTERS 31.46
305286 P 07/10/25 640 2301 DEPOSIT RENTERS 239.22

100481 PACIFIC GAS & ELECTRIC CO
305287 P 07/10/25 10054307 5402 POWER 20,253.69

107108 PARAMOUNT CLEANERS
305288 P 07/10/25 10034201 5303 CONTRACTUAL SERVICES 147.00 305288 P 07/10/25 10034203 5303 CONTRACTUAL SERVICES 357.00 305288 P 07/10/25 10034204 5303 CONTRACTUAL SERVICES 121.00

113839 PATEL, SACHI
305289 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 195.00

115459 PRUDENTIAL OVERALL SUPPLY
305290 P 07/10/25 10044420 5143 UNIFORM ALLOWANCE 166.47 305290 P 07/10/25 10054305 5143 UNIFORM ALLOWANCE 77.90 305290 P 07/10/25 10054308 5143 UNIFORM ALLOWANCE 76.59 305290 P 07/10/25 10054308 5303 CONTRACTUAL SERVICES 177.16 305290 P 07/10/25 22064303 5143 UNIFORM ALLOWANCE 120.09 305290 P 07/10/25 61254610 5143 UNIFORM ALLOWANCE 24.77 305290 P 07/10/25 64054712 5143 UNIFORM ALLOWANCE 148.47 TOTAL FOR 305290 791.45
305291 P 07/10/25 10054305 5143 UNIFORM ALLOWANCE 17.31 305291 P 07/10/25 10054330 5143 UNIFORM ALLOWANCE 72.06 305291 P 07/10/25 61254610 5143 UNIFORM ALLOWANCE 49.54

111822 QUINCON INC
305292 P 07/10/25 35055614 7001 CONSTRUCTION 29,111.00

100520 QUINN COMPANY
Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 305293 P 07/10/25 22064303 5613 MAINTENANCE-STREETS & BRID 3,921.13

114064 SCIENCE DIPPITY INC
305294 P 07/10/25 10044424 5351 SERVICES-CLASSES 815.50

112449 STEIL, ANDREA
305295 P 07/10/25 10004000 4605 SPEC.INT.CLASSES 335.00

115513 TABER, JORDAN
305296 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00

113174 TCA TOOLS INC
305297 P 07/10/25 10054305 5273 SMALL TOOLS 500.25
305297 P 07/10/25 10054305 5601 MAINTENANCE-VEHICLES 501.88

114302 THOMPSON, AMELIA
305298 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 50.00

105134 UK INT'L SOCCER CAMPS INC
305299 P 07/10/25 10044424 5351 SERVICES-CLASSES 3,216.80

105252 ULTREX BUSINESS PRODUCTS
305300 P 07/10/25 10014102 5255 SPECIAL DEPARTMENT SUPPLIE 64.72

100685 WALLACE GROUP A CALIF CORP
305301 P 07/10/25 61254610 5303 CONTRACTUAL SERVICES 3,189.55

102609 WATERBOYS PLUMBING
305302 P 07/10/25 10044420 5303 CONTRACTUAL SERVICES 2,224.00 305302 P 07/10/25 10054308 5604 MAINTENANCE-BUILDINGS 1,200.00

Attachment 1

City of Arroyo Grande

PAID INVOICES REPORT
Report generated: 07/29/2025 12:36
User: mschotborgh
Program ID: appdwarr

INV GROUP:071025 TO FISCAL 2025/01 07/01/2025 TO 06/30/2026

VENDOR NAME CHECK NO T CHK DATE GL ACCOUNT GL ACCOUNT DESCRIPTION 113459 YOUTH EVOLUTION BASKETBALL
305303 P 07/10/25 10044424 5351 SERVICES-CLASSES 3,063.20

116107 ZARATE, JAVIER
305304 P 07/10/25 100 2206 DEPOSITS-COMMERCIAL BLDG. 100.00

REPORT TOTALS 2,094,004.32

COUNT AMOUNT
TOTAL PRINTED CHECKS 109 2,094,004.32
** END OF REPORT - Generated by Megan Schotborgh **
Attachment 1

General Fund 450,129.19 5101 Salaries Full time 262,518.37 Streets Fund 20,127.36 5101 Volunteer Employee Retirement - Sewer Fund 16,039.45 5102 Salaries Part-Time - PPT 9,972.34 Water Fund 34,969.36 5103 Salaries Part-Time - TPT 9,218.69 521,265.36 5105 Salaries OverTime 12,091.95
5106 Salaries Strike Team OT -
5107 Salaries Standby 2,154.97
5108 Holiday Pay 11,811.25
5109 Sick Pay 260.05
Administrative Services 299.05 5110 Annual Leave Buyback 18,393.07 Information Services - 5111 Vacation Buyback -
Community Development - 5112 Sick Leave Buyback 7,926.15 Police 8,255.03 5113 Vacation Pay 28,136.42
Public Works - Maintenance 814.37 5114 Comp Pay 4,355.80 Public Works - Enterprise 1,288.67 5115 Annual Leave Pay 9,224.98 Recreation - Administration 1,434.83 5116 Salaries - Police FTO - Recreation - Special Events - 5121 PERS Retirement 40,572.36 12,091.95 5122 Social Security 28,696.40
- 5123 PARS Retirement 274.43
5126 State Disability Ins. 4,460.64
5127 Deferred Compensation -
5131 Health Insurance 55,731.09
5132 Dental Insurance 2,952.00
5133 Vision Insurance 773.91
5134 Life Insurance 392.59
5135 Long Term Disability 533.87
5137 Leave Payouts -
5142 Unemployment Insurance -
5143 Uniform Allowance 8,244.33
5144 Car Allowance 1,011.50
5146 Council Expense -
5147 Employee Assistance -
5148 Boot Allowance -
5149 Motor Pay 133.20
5150 Bi-Lingual Pay 150.00
5151 Cell Phone Allowance 1,275.00
521,265.36
OVERTIME BY DEPARTMENT:

CITY OF ARROYO GRANDE

DEPARTMENTAL LABOR DISTRIBUTION

PAY PERIOD
06/20/2025-07/03/2025
7/11/2025

BY FUND BY ACCOUNT
Attachment 2

Item 9.b.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Megan Schotborgh, Finance Manager
SUBJECT: Statement of Investment Deposits for June 2025 DATE: August 12, 2025
RECOMMENDATION:

Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of June 30, 2025, as required by Government Code Section 53646(b).

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no funding impact on the City related to these reports. However, the City does receive interest revenue based on the interest rate of the investments. Little to no future staff time is projected.

BACKGROUND:

The Administrative Services department has historically submitted to the City Council a monthly report providing the following information:

1. Type of investment.

2. Financial institution (bank, savings and loan, broker, etc.).

3. Date of maturity.

4. Principal amount.

5. Rate of interest.

6. Current market value for all securities having a maturity of more than 12 months.

7. Relationship of the monthly report to the annual statement of investment policy.

ANALYSIS OF ISSUES:

This report represents the City’s investments as of June 30, 2025, and includes all investments managed by the City. As of June 30, 2025, the investment portfolio complied with all State laws and the City’s investment policy.

Item 9.b.

City Council
Statement of Investment Deposits for June 2025
August 12, 2025

ALTERNATIVES:

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

1. Approve staff’s recommendation to receive and file the attached report listing the investment deposits;

2. Do not approve staff’s recommendation; or

3. Provide other direction to staff.

ADVANTAGES:

Safety of principal is the foremost objective of the City. Investments are undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.

DISADVANTAGES:

Some level of risk is present in any investment transaction. Losses could be incurred due to market price changes, technical cash flow complications such as the need to withdraw a non-negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such risks, diversification of the investment portfolio by institution and by investment instruments are being used as much as is practical and prudent.

ENVIRONMENTAL REVIEW:

The Statement of Investment Deposits 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. (c)(2)-(3), 15378).

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. Portfolio Summary: June 30, 2025

ATTACHMENT 1

CITY OF ARROYO GRANDE
Portfolio Summary
June 30, 2025
Investments Principal Value
Current Market
Value
Interest
Rate Date of Purchase Term Maturity Date
% of
Portfolio
Local Agency Investment Fund $ 11,374,767.16 $ 11,374,767.16 4.269% 42.007% Certificates of Deposit
Pacific Premier Bank 249,000.00 249,000.00 3.680% February 21, 2025 12 mos February 21, 2026 0.920% New York Community Bank 249,000.00 249,000.00 0.550% July 1, 2021 48 mos July 1, 2025 0.920% Chief Financial FCU 249,000.00 249,000.00 4.600% October 14, 2022 36 mos October 14, 2025 0.920% Live Oak Banking Company Inc 249,000.00 249,000.00 3.150% May 26, 2022 48 mos May 26, 2026 0.920% UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 0.920% Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 0.916% Chartway Federal Credit Union 248,000.00 248,000.00 5.250% July 28, 2023 60 mos July 28, 2026 0.916% California Credit Union Glendale 243,000.00 243,000.00 5.450% October 26, 2023 36 mos October 26, 2026 0.898% Alliant Credit Union 248,000.00 248,000.00 5.500% November 15, 2023 36 mos November 16, 2026 0.916% Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 0.916% Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 0.920% Paragon Bank TN 245,000.00 245,000.00 4.050% March 19, 2025 24 mos March 19, 2027 0.905% Discover Bank 246,000.00 246,000.00 3.200% May 18, 2022 60 mos May 19, 2027 0.909% United Teletech Financial Credit Union 248,000.00 248,000.00 5.100% November 8, 2023 48 mos November 8, 2027 0.916% Medallion Bank UT 249,000.00 249,000.00 4.000% March 14, 2025 36 mos March 14, 2028 0.920% Amerant Bank NA 245,000.00 245,000.00 4.050% March 28, 2025 36 mos March 28, 2028 0.905% Freedom Northwest Credit Union 249,000.00 249,000.00 4.000% March 28, 2025 36 mos March 28, 2028 0.920% Morgan Stanley Bank 244,000.00 244,000.00 4.650% April 6, 2023 60 mos April 6, 2028 0.901% Maine Savings Federal Credit Union 249,000.00 249,000.00 4.800% July 21, 2023 60 mos July 21, 2028 0.920% SkyOneFederal Credit Union 249,000.00 249,000.00 3.900% October 25, 2024 48 mos October 25, 2028 0.920% Merrick Bank UT 249,000.00 249,000.00 4.000% March 19, 2025 48 mos March 19, 2029 0.920% Bank Hapoalim BM New York 244,000.00 244,000.00 4.500% May 21, 2024 60 mos May 21, 2029 0.901% Morgan Stanley Private Bank 244,000.00 244,000.00 4.650% May 22, 2024 60 mos May 22, 2029 0.901% Goldman Sachs Bank USA 245,000.00 245,000.00 4.000% March 18, 2025 60 mos March 18, 2030 0.905% BMW Bank NA Salt Lake 245,000.00 245,000.00 4.000% May 16, 2025 48 mos May 16, 2029 0.905% Texas Exchange Bank Crowley 249,000.00 249,000.00 4.000% May 23, 2025 48 mos May 23, 2029 0.920% Total Certificates of Deposit 6,429,000.00 6,429,000.00 23.750% g y
Federal Natl Mortgage Assn 1,000,000.00 988,270.00 0.500% October 20, 2020 60 mos October 20, 2025 3.693% Federal Home Loan Bank 999,500.00 976,660.00 0.800% March 17, 2021 60 mos March 10, 2026 3.692% Federal Home Loan Bank 994,396.00 974,250.00 2.400% March 17, 2021 72 mos March 29, 2027 3.673% Federal Home Loan Bank 500,000.00 494,195.00 3.375% May 17, 2022 60 mos May 17, 2027 1.847% Federal Agriculture Mortgage Corp 495,174.00 496,955.00 3.580% October 28, 2024 36 mos October 7, 2027 1.829% Federal Agriculture Mortgage Corp 2,023,548.90 2,051,940.00 4.650% May 17, 2024 60 mos April 26, 2029 7.474% Total Agency Bonds 6,012,618.90 5,982,270.00 Page 24 of 548 22.208% ATTACHMENT 1

CITY OF ARROYO GRANDE
Portfolio Summary
June 30, 2025
Investments Principal Value
Current Market
Value
Interest
Rate Date of Purchase Term Maturity Date
% of
Portfolio
Municipal Bonds
California State GO Various Purp Bond $ 491,810.00 $ 494,275.00 2.500% May 12, 2022 47 mos April 1, 2026 1.816% California State Taxable GO Unlimited 1,256,116.00 1,324,804.40 3.500% November 1, 2023 53 mos April 1, 2028 4.639% California State Taxable GO Unlimited 525,935.25 540,695.50 2.500% December 19, 2024 57 mos October 1, 2029 1.943% Total Municipal Bonds 2,273,861.25 2,359,774.90 8.398%
Treasury Obligations
U.S. Treasury Z-2026 Series 984,728.00 970,550.00 1.100% December 6, 2021 53 mos May 31, 2026 3.637% Total Treasury Obligations 984,728.00 970,550.00 3.637% TOTAL INVESTMENTS $ 27,074,975.31 $ 27,116,362.06 100.000%

Item 9.c.

MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Director of Administrative Services BY: Aleah Bergam, Management Analyst
SUBJECT: Receive and File the Biennial Budget Book for Fiscal Years (FY) 2025- 27 DATE: August 12, 2025
RECOMMENDATION:

Receive and file the City of Arroyo Grande Biennial Budget Book for Fiscal Years (FY) 2025-27.

IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:

There is no fiscal impact associated with receiving and filing the Budget Book, as all appropriations were previously approved by the City Council at the June 10, 20251, Council Meeting. Preparation and publication of the document were completed using existing staff resources within the Administrative Services Department and City Manager’s Office. No additional personnel or funding is required as a result of this action.

BACKGROUND:

Every two years, staff and Council prepare a Biennial Budget document, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. The City Council adopted the FY 2025-27 Biennial Budget at its meeting on June 10, 2025, and all associated appropriations were approved at that time. The Budget Book serves as a comprehensive and consolidated reference of the City’s adopted operating and capital budgets, revenue projections, fund summaries, department work plans, community and organizational profile, and related financial policies.

ANALYSIS OF ISSUES:

Following adoption of the budget, staff finalized the formatting and content of the Budget Book to reflect all Council-approved actions, updated charts, and narrative content. No

1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14866

Item 9.c.

City Council
Receive and File the Biennial Budget Book for Fiscal Years (FY) 2025-27 August 12, 2025

changes have been made to the budget allocations or appropriations since Council adoption.

This item is presented as an administrative step to formally receive and file the final formatted Budget Book for public record, ease of reference, and transparency. A digital copy of the Budget Book will be posted to the City’s website.

ALTERNATIVES:

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

1. Receive and file the FY 2025-27 Biennial Budget Book as recommended;

2. Request additional information or clarification; or

3. Provide other direction to staff.

ADVANTAGES:

Receiving and filing the FY 2025-27 Biennial Budget Book provides a clear and accessible document for public and internal use. Additionally, it enhances transparency and accountability of the City's financial planning.

DISADVANTAGES:

There are no disadvantages to receiving and filing the FY 2025-27 Biennial Budget Book.

ENVIRONMENTAL REVIEW:

Receiving and filing the FY 2025-27 Biennial Budget Book 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 (c)(2) and (3), 15378.) Alternatively, receiving and filing the FY 2025-27 Biennial Budget Book is exempt from CEQA on the basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) Individual projects within the Budget may be subject to CEQA and environmental review will be conducted at the appropriate time during implementation of those projects.

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. Fiscal Year (FY) 2025-27 Biennial Budget Book

2025-2027
www.arroyogrande.org
ATTACHMENT 1

M a y o r C a r e n R a y R u s s o m
M a y o r P r o T e m K a t e S e c r e s t
C o u n c i l M e m b e r A i l e e n L o e
C o u n c i l M e m b e r J a m i e M a r a v i g l i a C o u n c i l M e m b e r J i m G u t h r i e
Prepared and Submitted by
Department of Administrative Services
Appointed Officials:

Matthew J. Downing, City Manager
Isaac Rosen, City Attorney
Department Directors:

Bill Robeson, Assistant City Manager/Public Works Director David Culver, Interim Chief of Police
Scott Hallett, Fire Chief
Nicole Valentine, Administrative Services Director/City Treasurer Brian Pedrotti, Community Development Director
Ashley Garcia, Human Resources Officer
Jessica Matson, Legislative & Information Services Director/City Clerk Sheridan Bohlken, Recreation Services Director
Other Key Staff Involved in the Budget Process:

Kevin Waddy, Information Technology Manager
Megan Schotborgh Accounting Manager
Shannon Sweeney, City Engineer
Theresa Wren, Capital Projects Manager
Dan Kies, Public Works Manager
Shane Taylor, Utilities Manager
Aleah Bergam, Management Analyst

Table of Contents
READER’S GUIDE......................................................................................................................................................... 1 BUDGET AWARDS ....................................................................................................................................................... 2 INTRODUCTION TO ARROYO GRANDE ....................................................................................................................... 3 City Structure ............................................................................................................................................. 4 Community Profile ..................................................................................................................................... 8 Arroyo Grande at a Glance ...............................................................................................................17 Organizational Chart......................................................................................................................... 18 BUDGET SUMMARY..................................................................................................................................................19 City Manager’s Budget Message.............................................................................................................. 20 Guide to the Budget................................................................................................................................. 24 Fund Structure...................................................................................................................................31 Financial Policies ...................................................................................................................................... 36 Fund Balance Policy .......................................................................................................................... 44 Debt Management Policy.................................................................................................................. 49 Five-Year Financial Forecast..................................................................................................................... 55 Council Goals............................................................................................................................................ 62 Council Goal’s Work Plans................................................................................................................. 65 BUDGET OVERVIEW.................................................................................................................................................. 68 Overview .................................................................................................................................................. 69 Interfund Transfers .................................................................................................................................. 70 Fund Summaries....................................................................................................................................... 75 Consolidated Summary – All Funds .................................................................................................. 76 General Fund............................................................................................................................................ 77 General Fund..................................................................................................................................... 78 Local Sales Tax Funds........................................................................................................................79 Consolidated General Fund............................................................................................................... 80 Consolidated General Fund Revenues by Source .............................................................................. 81 Consolidated General Fund Revenues by Trends.............................................................................. 82 Consolidated General Fund Revenues Detail .................................................................................... 83 Consolidated General Fund Expenditures by Department................................................................ 87 General Fund Expenditures by Department......................................................................................88 General Fund Expenditures by Object...............................................................................................90 Enterprise Funds ...................................................................................................................................... 93 Special Revenue Funds............................................................................................................................. 97 Agency Funds ......................................................................................................................................... 109 City Staffing and Personnel Costs...........................................................................................................112 City Staffing.....................................................................................................................................113 Personnel Summary ........................................................................................................................114 Personnel Costs...............................................................................................................................118 DEPARTMENT BUDGET DETAIL .............................................................................................................................. 119 City Administration ................................................................................................................................121 City Manager...................................................................................................................................123 Legislative & Information Services..................................................................................................128 Administrative Services...................................................................................................................132 Public Works...........................................................................................................................................135 Community Development......................................................................................................................143

Table of Contents
Public Safety........................................................................................................................................... 149 Police Department ..........................................................................................................................150 Fire Department – Five Cities Fire Authority ...................................................................................154 Recreation Services................................................................................................................................157 DEBT MANAGEMENT..............................................................................................................................................163 CAPITAL IMPROVEMENT PROGRAM......................................................................................................................166 10-Year Summary by Project Type.........................................................................................................177 Projects Budgeted FY 2025-26 ...............................................................................................................181 Projects Budgeted FY 2026-27 ...............................................................................................................185 Projects Budgeted FY 2027-28 ...............................................................................................................189 Projects Budgeted FY 2028-29 ............................................................................................................... 191 Projects Budgeted FY 2029-30 ............................................................................................................... 193 Projects Budgeted FY 2030-31 ............................................................................................................... 195 Projects Budgeted FY 2031-32 ............................................................................................................... 198 Projects Budgeted FY 2032-33 ...............................................................................................................200 Projects Budgeted FY 2033-34 ...............................................................................................................201 Projects Budgeted FY 2034-35 ...............................................................................................................202 APPENDIX ...............................................................................................................................................................203 Budget Resolution..................................................................................................................................204 Appropriation Limit................................................................................................................................ 209 Appropriation Limit Resolution.............................................................................................................. 212 Budget Glossary .....................................................................................................................................217 Guide to Funds by Number....................................................................................................................226

Reader’s Guide
1 TOC
This is an overview of the structure of the FY2025-27 Biennial Budget, designed to help readers understand the annual budget process. To focus on what is achieved through spending, the budget includes funding levels and expected program outcomes, taking into consideration the current economic situation.

INTRODUCTION TO ARROYO GRANDE
A brief introduction to the City Council and Council-Manager form of government, the district map of Arroyo Grande, and details on services, structure, and organization chart. The introduction also includes a community profile with history, geographic and regional context, and demographics.

BUDGET SUMMARY
Overview of the City’s budget process, financial policies, funding sources, department budget updates, and the 10-year Capital Improvement Program (CIP).
• City Manager’s Budget Message
The City Manager’s address to the Mayor and City Council to highlight budget development priorities and any significant changes from the prior year adopted budget. • Guide to the Budget
An overview of the budget process that explains budget purpose, the development of the base budget, and the final adoption and appropriation of the budget, budget basics, budget reporting, budget amendments, and fund structure.
• Financial Planning
An overview of key financial policies that govern the City’s approach to debt management, maintenance of fund balances, long-term financial planning, and other financial responsibilities. • Budget Overview
A summary of all major and non-major funds.
• Department Budget Overview
An overview of each department’s purpose and structure, significant accomplishments, performance measures, department work plans, authorized personnel, including an organizational chart, and FY 2025-27 Biennial Budget. • Debt Service Overview
An overview of the City’s debt management with outstanding debt service requirements and a debt payment schedule.
• Capital Improvement Program (CIP) Overview
An overview of the City’s 10-Year CIP plan, sources of funding, budgeted expenditures, project timelines, and project descriptions by program, project, and fund.

APPENDIX
Included in the appendix is a copy of the City Council adopted Budget and GANN Appropriation Resolutions, the GANN Appropriation Limits, a list of funds by number, and a glossary of terms.

2 TOC

GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA)

DISTINGUISHED BUDGET PRESENTATION AWARD
The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Arroyo Grande, California for its Biennial Budget covering the period beginning July 1, 2023, and ending June 30, 2025.

This award reflects the City’s commitment to meeting the highest standards in government budgeting. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device.

The City of Arroyo Grande is confident that the City’s Fiscal Year 2025- 27 Biennial Budget continues to meet the GFOA’s rigorous criteria.

Accordingly, this budget document will be submitted to the GFOA for review and consideration.

CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS
(CSMFO) OPERATING BUDGET MERITORIOUS AWARD
The California Society of Municipal Finance
Officers (CSMFO) presented an Operating
Budget Meritorious Award to the City of
Arroyo Grande, California for the City’s Fiscal
Year 2023-25 Biennial Budget.

The City of Arroyo Grande is confident that
the City’s Fiscal Year 2025-27 Biennial Budget
will continue to conform to award
requirements. Accordingly, this budget
document will be sent to CSMFO.

3 TOC

INTRODUCTION TO

ARROYO GRANDE

4 TOC

CITY STRUCTURE

City Structure
5 TOC

MAYOR AND CITY COUNCIL

GOVERNMENT STRUCTURE
The City of Arroyo Grande is a general law city and operates under the Council-Manager form of government, with a five-member City Council elected by district for four-year overlapping terms. The Council is elected on a non-partisan basis, and Council members must live in the district they represent. The mayor is elected at-large for a two-year term and is the presiding officer of the Council. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and City Attorney.

City Structure
6 TOC

DISTRICT MAPS

CITY BOARDS AND COMMISSIONS
City Boards and Commissions are the underpinnings of the Arroyo Grande community – they are how the community navigates the daily and weekly decisions that make Arroyo Grande run smoothly to become the kind of community desired by City stakeholders. Boards and Commissions may forward matters to the City Council, as appropriate.

Membership on City Boards and Commissions are voluntary positions. Members, with the exception of the Downtown Parking Advisory Board (DPAB) and Tourism Business Improvement District (TBID) Board must be registered voters of Arroyo Grande. Applicants for the DPAB shall have a business within the Arroyo Grande City Parking and Business Improvement Area. The TBID Board shall consist of five (5) members, with a preference that at least three (3) members shall be owners of lodging businesses within the Arroyo Grande TBID, or others with knowledge of tourism and/or the lodging industry. Members of each respective Commission/Board/Committee shall serve for a term ending the January 31st following the expiration of the term of the respective appointing Mayor or Council Member, as applicable.

City Structure
7 TOC
Members of each respective Commission/Committee/Board may be removed prior to expiration of their term by a majority vote of the Council. The following is a list of current City Boards and Commissions:
• Planning Commission
• Downtown Parking Advisory Board
• Architectural Review Committee
• Tourism Business Improvement District (TBID) Board
• Community Service Grant Program (CSGP) Committee
• Citizen Sales Tax Oversight Committee (CSTOC)

CITY DEPARTMENTS
The City Municipal Code (Chapter 2. Administration and Personnel) provides the basis for the departmental structure of the City and establishes that the City Manager be appointed by the City Council to manage the affairs of the City.

The City’s Municipal code establishes the administrative organizational structure of the City under the control and direction of the City Manager. The City’s use of resources is budgeted in eight departments City Manager’s Office, Administrative Services, Legislative and Information Services, Community Development, Police, Public Works, Fire (JPA), and Recreation Services.

FULL-SERVICE CITY
The City of Arroyo Grande is considered a full-service city, meaning that all or most municipal services are provided by the City, as opposed to being contracted out to third-party providers. Some services commonly contracted out by municipalities include public safety and utility services; however, only fire services, sanitation treatment, and solid waste disposal are contracted out by the City of Arroyo Grande.

Community Development
Finance
Human Resources
Information Technology
Public Works
Police
Recreation
City Administration
City Clerk/Information Services

8 TOC

COMMUNITY PROFILE

Community Profile
9 TOC

OVERVIEW
The City of Arroyo Grande is a dynamic and historic community located along California’s Central Coast, approximately two miles inland from the Pacific Ocean in San Luis Obispo County. With a population of just over 18,000 residents, Arroyo Grande combines the charm of a small town with the amenities of a modern city. Known for its agricultural productivity, wine region designation, and strong community identity, the City continues to thrive as a regional hub for tourism, retail, and cultural activity.

The City’s mission is to be the best place possible for everyone who lives, works, and visits. It strives to achieve this mission by providing efficient and responsive government services

GEOGRAPHIC AND REGIONAL CONTEXT
Arroyo Grande is situated in a fertile valley carved by the Arroyo Grande Creek and is bordered by the cities of Pismo Beach and Grover Beach, along with the unincorporated community of Oceano. The City is part of the "Five Cities" area, a coastal cluster that also includes Shell Beach. This region enjoys a temperate climate, scenic coastal landscapes, and a collaborative regional economy centered on tourism, agriculture, and small business.

HISTORY AND INCORPORATION
Arroyo Grande was officially incorporated on July 10, 1911.

However, its historical roots extend back much further, beginning with the Chumash people who originally
inhabited the region. During the Mexican land grant era, the area became part of Rancho Arroyo Grande, later
purchased and settled by Francis Ziba Branch and his family.

The city developed as a hub for agriculture and commerce in the late 19th century, aided by the construction of a railroad depot in 1882. Today, Arroyo Grande honors its history through preservation of landmarks like the historic Swinging Bridge and the Santa Manuela Schoolhouse.

ECONOMIC CHARACTERISTICS
Arroyo Grande’s economy is supported by a diverse mix of sectors, including agriculture, retail, tourism, and
professional services. The city's historic Village area serves as a focal point for community events, small businesses, restaurants, and artisan shops, attracting both residents and visitors. As part of the broader Five Cities area, Arroyo Grande benefits from strong regional visitation and a tourism-based economy that drives local revenue through transient occupancy and sales taxes.

Community Profile
10 TOC

COMMUNITY IDENTITY AND QUALITY OF LIFE
Arroyo Grande is recognized for its small-town feel,
scenic beauty, and commitment to preserving its
cultural and architectural legacy. Community
character is reflected in historic features such as
the Swinging Bridge, the Santa Manuela
Schoolhouse, and preserved buildings in the
Village. The city offers a high quality of life, with
well-maintained parks, walking trails, and
community services. Residents enjoy a safe, familyfriendly environment with access to excellent schools, healthcare, and recreational
opportunities.

CITY RECREATION AREAS & PROGRAMS
The City provides several parks with picnic, barbecue, and playground areas. Strother Community Park, located along the bank of the Arroyo Grande Creek, is ideal for reunions, picnics, and barbecues. Elm Street Park has tennis,
pickleball, and playground equipment for all ages. Heritage Square Park, connected to the Village area by the historic Swinging Bridge, is a favorite place for tourists and locals to enjoy lunchtime.

The Hart-Collett Memorial Park, the Terra De Oro Park, and the Kiwanis Park are small parks with picnic tables and benches only.

Rancho Grande Park is also ideal for family gatherings or special celebrations.

The twenty-six-acre Soto Sports Complex serves the Five Cities region by providing four lighted tennis courts, baseball fields, four lighted softball fields, and two unlit ball fields. The fields are converted to soccer and football use in the fall.

Community Profile
11 TOC
The James Way Oak Habitat and Wildlife Preserve has
equestrian and jogging/walking trails for public use. The habitat, winding along a hillside in an oak preserve, has an abundant array of wildlife.

The City offers a wide variety of recreational
opportunities for local residents and visitors. From youth and adult sports leagues, and special events to classes for seniors and summer youth camps, there are
programs available for nearly every age.

DEMOGRAPHICS
A city is defined by its assets, the most important being the people who live, work, and contribute within its boundaries. Arroyo Grande takes pride in its close-knit, community-oriented population, rich heritage, and strong sense of place. The City has thoughtfully managed growth while preserving its historic character and natural beauty, balancing its roots in farming and viticulture with a modern, vibrant lifestyle.

With a median single-family home sale price of approximately $758,100 as of 20231 , Arroyo Grande
attracts families seeking a high quality of life on California’s Central Coast. The city appeals to a diverse range of residents, from young families to retirees, drawn by the area’s scenic surroundings, historic charm, and a variety of housing options. The historic Village district offers a unique blend of local shops, dining, and cultural events that foster a strong community spirit.

Arroyo Grande’s economy is anchored in agriculture, tourism, small businesses, and retail, with a growing presence in viticulture recognized as part of the Arroyo Grande Valley American Viticultural Area (AVA).

Employment opportunities span farming, hospitality, healthcare, professional services, and retail sectors.

The City continues to support economic development efforts that enhance local job growth while maintaining its small-town character.

Education is a vital part of the community, with quality public and private schools serving students from kindergarten through high school. Additionally, residents have convenient access to nearby higher 1 Data Source: 2023 US Census Bureau, American Community Survey. Home value data includes all types of owneroccupied housing.

Community Profile
12 TOC
education institutions in San Luis Obispo County and along the Central Coast, providing a range of educational pathways for lifelong learning.

Arroyo Grande is a welcoming and vibrant community that honors its agricultural legacy while embracing sustainable growth, making it a desirable place to live, work, and visit on California’s beautiful Central Coast.

Community Profile
13 TOC

Community Profile
14 TOC

Community Profile
15 TOC

Community Profile
16 TOC

Arroyo Grande at a Glance
17 TOC
The City of Arroyo Grande was incorporated in 1911 and operates as a general-law city under the CouncilManager form of government. Nestled approximately two miles inland from the Pacific Ocean along California’s Central Coast, Arroyo Grande is part of San Luis Obispo County and the vibrant “Five Cities” region. The city is known for its rich agricultural heritage, scenic valley setting, and charming historic Village district. Arroyo Grande attracts visitors and residents alike with its mild climate, picturesque vineyards, local wineries, and a welcoming small-town atmosphere. As of January 1, 2023, the California Department of Finance estimates the City’s population at approximately 18,412 residents. While much of the city remains residential, there is ongoing development that balances growth with preservation of the community’s unique character and natural beauty.

At a Glance
Incorporation
1911
Government
Full-service, general-law city
County
San Luis Obispo County https://www.slocounty.ca.gov/
School Districts
Lucia Mar Unified School District http://www.luciamarschools.org Location
Located on the Central Coast, approximately two miles inland from the Pacific Ocean in San Luis Obispo County, midway between Los Angeles and San Francisco
Climate
Moderate
Population
18,412
State legislature
17th Senate District
Democrat John Laird
30th Assembly District
Democrat Dawn Addis
U.S. Congress
Representative:

California's 24th Congressional District
Democrat Salud Carbajal

Organizational Chart
18 TOC

19 TOC

BUDGET SUMMARY

20 TOC
CITY MANAGER’S

BUDGET MESSAGE

Budget Message
21 TOC
July 1, 2025
To the Residents of Arroyo Grande, Honorable Mayor, and Members of the City Council:

I am pleased to present the Fiscal Years (FY) 2025-27 Biennial Budget. This is the first two-year budget I have submitted as City Manager, and as was the case with budgets past, this budget reflects the unwavering commitment to strategic financial management, promoting financial stability, growing the economy, and enhancing the quality of life for all Arroyo Grande residents. The proposed budget is balanced, incorporates all City funds, funds major efforts toward implementing the City Council’s goals, includes important initiatives to upgrade the City’s infrastructure, continues to fund the high-quality services that the community has come to expect, and will invest in the future through capital improvements and maintenance activities.

Process for Creating City Goals
In preparation for this two-year budget, the City Council actively involved the community in shaping our direction through the Community Priorities Survey. This four-question survey was posted on the City website and promoted on social media channels. The survey enabled community members to provide input regarding their thoughts on the top priorities for the City over the next 2-3 years. A summary of the responses was reviewed by the Council before establishing five (5) major Council goals for staff to prioritize for the upcoming biennial budget. This set of priorities has been used by staff to create work plans for the proposed biennial budget. The Council Goals have been used as a foundation for recommending where to allocate scarce City resources.

The five major goals are:
• Complete the General Plan Update
• Redevelop the East Grand Avenue Corridor (Halcyon Road to Elm Street) • Pursue New Revenue Sources
• Implement Road and Sidewalk Improvements
• Achieve Water Resilience
How FY 2025-27 City Goals Compare to the FY 2023-25 Council Goals The FY 2025-26 & FY 2026-27 Council Goals build upon the success of the FY 2023-24 & FY 2024-25 Council goals from the last two-year budget. Similar to the last two-year budget, the Council continues to focus on providing resources toward funding, infrastructure, and the general plan update. A major factor in helping address the funding goal was the passage of Measure E-24, a local 1% sales tax approved by the City's voters in November 2024. Measure E-24’s intent is to fund city services, such as fixing potholes, maintaining city streets, sidewalks, parks, aging infrastructure, and community facilities; providing local fire protection, police, and 9-1-1 emergency services; cleaning up litter/graffiti, and addressing homelessness. This goal will continue into the FY 2025-27 biennial budget with the consideration of cannabis as a means for economic development and consideration of modifications to Transient Occupancy Tax (TOT). The former fire services goal was achieved as of January 1, 2025, with the updated Joint Powers Authority Agreement with Grover Beach and the contract with the County of San Luis Obispo to provide fire service to the community of Oceano. The infrastructure goal will continue from the last two-year budget, with the addition of specific projects identified: Redevelop the East Grant Avenue Corridor and Implement Road and Sidewalk Improvements. A new goal was added for FY 2025-27: Achieve Water Resilience. This new goal supports regional efforts to address the ongoing Lopez Litigation and by pursuing a ballot measure in November 2026, to potentially allow the City to purchase State Water outside of declared water emergencies.

Budget Message
22 TOC
How the City Plans to Accomplish the FY 2025-27 City Goals The Adopted Budget strategically allocates resources to projects that align with our five Council Goals. Each initiative reflects a deep understanding of community needs, is strengthened by collaborative partnerships, and is made possible by the City’s strong financial position. These efforts are focused on preserving and enhancing the quality of life for both current residents and future generations. Looking ahead, the future is bright for Arroyo Grande—its residents and visitors alike—thanks to strategic investments that will deliver lasting, positive impacts.

Financial Overview
The overall financial goals for the FY 2025-27 budget period is to have a fiscally sound two-year budget, enhance current service levels, and address critical capital projects. The FY 2025-27 Adopted Budgets present a structurally balanced budget, with excess operating revenues sufficient to cover Adopted Operating Budget expenditures.

The FY 2025-26 proposed budget includes a total of $32.1 million in revenues and $35.6 million in operating and capital budget for a net of $3.5 million more expenditures than revenues. The operating budget is balanced, with a $2 million net operating surplus. The expenditures that exceed revenues are for one-time projects that the City has been anticipating. Fund balances accumulated over time offset the additional expenditures and exceed the City’s policy goal of 20% by 5.8%.

The FY 2026-27 proposed budget includes a total of $33.2 million in revenues and $35.3 million in operating and capital expenditures for a net of $2.1 million more expenditures than revenues. The operating budget is balanced, with a $64,534 net operating surplus. Fund balances accumulated over time offset the additional expenditures and are still at the City’s policy goal of 20%.

Historically, the City has adopted a rolling 5-Year Capital Improvement Program (CIP) that identifies, prioritizes, and budgets for capital infrastructure needs such as roads, water and sewer systems, parks, and facilities. While this approach has served the organization well, growing infrastructure demands and increasingly complex funding environments have highlighted the need for a longer planning horizon. This report has transitioned the CIP from a 5-Year CIP framework to a 10-Year planning horizon, a change intended to improve long-range financial planning, infrastructure forecasting, and alignment with strategic goals.

This Capital Improvement Program (CIP) outlines anticipated City infrastructure improvements for FY 2025- 26 through FY 2034-35 and serves as a public information document to advise residents and property owners on how the City plans to address significant capital needs. The CIP is divided into nine categories – Bridges, Drainage, Parks & Play Structures, Public Facilities, Sewer, Sidewalks, Streets and Transportation, Technology, and Water. It contains information about the scope, location, and funding for these projects.

Each year, the overall goal for capital improvements and the means for accomplishing them are assessed.

Every project in the plan has been considered for its financial feasibility, environmental impact, conformance with previously adopted plans, priorities established by the City Council, and ability to meet public needs.

The FY 2025-26 through FY 2034-35 CIP totals $138,128,065. It is a flexible plan that can be altered as conditions, funding, priorities, and regulations change.

Budget Message
23 TOC
Acknowledgements
I would like to express my sincere appreciation to the dedicated teams across all City departments—from leadership to frontline staff—for their collaborative efforts in developing the FY 2025-27 Biennial Budget.

Their ongoing commitment to interdepartmental collaboration, community well-being, and the City’s fiscal stability has been instrumental throughout this process. This document is a true reflection of a united and dedicated team effort.

A special thank you goes to the Administrative Services Department for their outstanding support, including training, financial analysis, expert guidance, and steadfast adherence to critical deadlines.

Finally, I am deeply grateful to the City Council. The overall objective is to meet the community’s needs and provide services in the most effective, efficient, and responsive manner. With the City Council’s strong leadership, strategic direction, and clear vision, we have accomplished that objective.

Closing
Our commitment to making this the best place possible for everyone who lives, works, and visits Arroyo Grande is reflected in the strategic investments we are making today, investments that support a sustainable and vibrant future. Through sound financial stewardship and thoughtful community-focused initiatives, we continue to enhance the experiences of both residents and visitors. The City of Arroyo Grande is wellpositioned for continued success. I am especially encouraged by the spirit of collaboration shared by our community members, partner agencies, volunteers, business owners, nonprofit leaders, and elected officials.

Together, we are creating a community where everyone can thrive. It is truly a privilege to work alongside such dedicated and inspiring individuals.

Sincerely,
MATTHEW J. DOWNING – CITY MANAGER

24 TOC

GUIDE TO THE
BUDGET

Guide to the Budget
25 TOC

PURPOSE OF THE BUDGET
The City budget sets forth a strategic resource allocation plan that addresses the City Council’s Strategic Goals. The Budget is a policy document, financial plan, operations guide, and communication device all in one. Through the budget document, the City demonstrates its accountability to its residents, customers, and the community-at-large.

The City’s Budget accomplishes the following:
• Determines the quality and quantity of City programs and services; • Details expenditure requirements and the estimated revenue available to meet these requirements;
• Connects the activities of individual City Departments to the City Council’s Strategic Goals; • Sets targets and provides a means of measuring actual accomplishments against goals; and • Serves as a communication device that promotes the City’s vision and direction, fiscal health and vitality, and what the public is getting for its tax dollars.

Additionally, the budget provides the legal authority for expenditures and a means for control of municipal operations throughout the fiscal year. Accordingly, the City Charter mandates that a budget be adopted prior to the beginning of the fiscal year.

The budget process furnishes departments with an opportunity to justify departmental work programs, to propose changes in services, and to recommend revisions in organizational structure and work methods. It also enables the City Manager to review these aspects and make appropriate recommendations to the City Council.

Presentation of the budget to the City Council provides an opportunity to explain municipal programs and organizational structures. It also allows the Council to judge the adequacy of the proposed operating programs, to determine basic organizational and personnel staffing patterns, and to establish the level of municipal services to be provided with the available resources. In order to accomplish these objectives, the budget must combine an explanation of anticipated financial resources for the ensuing fiscal year with proposed expenditures, supported by sufficient information on the proposed programs and activities to assess the appropriateness of the recommended levels of services.

THE OPERATING BUDGET, CAPITAL BUDGET, AND

CAPITAL IMPROVEMENT PROGRAM
The budget document contains information about both the City’s operating and capital budgets. The operating budget details the funding for the day-to-day operations and obligations of the City for a specific fiscal year such as personnel costs, vendors and contractors, utilities, building maintenance, and debt payments. The capital budget details planned expenditures for the same fiscal year to construct, maintain, or improve City facilities such as fire and police stations, libraries and museums, parks, recreation centers, streets, sewers, and electric and water infrastructure.

Guide to the Budget
26 TOC
The Capital Improvement Program (CIP) is a separate ten-year planning document that details planned capital expenditures. Capital projects range from road maintenance or construction to the renovation of municipal buildings, recreation centers and play structures, and water main and sewer system replacement. The CIP relates capital project needs to the financial sources that will support their realization and the timeframe in which both the financing and work will take place. Often spanning multiple years, capital improvement projects typically carry considerable future impact. Because of the more long-term nature of the CIP and the complex nature of capital project financing, the CIP is presented in a separate document. However, the first two years of the CIP are integrally related to the Biennial Budget document, and therefore a summary of the CIP is provided in the Capital Improvement Program Overview section of this budget, beginning on page 167.

BUDGET PROCESS
The City of Arroyo Grande’s fiscal year begins July 1 and concludes on June 30. In accordance with fundamental democratic principles, the City embraces the notion and practice of citizen participation, especially in key planning and resource allocation activities. Therefore, the development of the budget process begins early in the prior fiscal year to ensure adequate planning and community input into that planning. Engagement with City leadership, commissions and the community occur throughout the process.

At the beginning of budget development, the City initiated community engagement with online surveys to gather input from residents and business owners. A Community Priorities Survey assessed residents' satisfaction and priorities. This feedback informed resource allocation decisions for the upcoming budget.

Guide to the Budget
27 TOC

DEVELOPMENT OF THE BUDGET PROCESS
Every two years, staff and Council prepare a Biennial Budget document, which commits government resources and services to accomplish the City’s mission of making Arroyo Grande the best place possible for everyone who lives, works, and visits here. To develop the biennial budget for Fiscal Years 2025-27.

The 5-step process and timeline tat was used for this budget cycle is depicted below Step 1: On December 9, 2024, an Arroyo Grande Community Priorities Survey was published. This 4- question online survey was posted on the City website and promoted on social media channels. The survey was open for one month and closed on January 15, 2025. The survey allowed community members to provide input regarding their thoughts on what the top priorities should be for the City over the next 2-3 years. The survey included a combination of multiple-choice and short-response questions. A summary of the responses is included in Attachment 2 of Item 4: City Council Goal Setting Workshop, at the February 10, 2025, Special Council Meeting.

Guide to the Budget
28 TOC
Step 2: At the February 10, 2025, Special Council Meeting, Council established 5 major goals for staff to prioritize for the upcoming biennial budget cycle. The goals were determined based on the results of the community survey and input from the public and staff. This set of priorities will be used by staff to create work plans and a proposed biennial budget.

Step 3: Following completion of the study session, staff developed a proposed budget by implementing the following steps:
• January 28, 2025 - Financial Forecast
o Staff presented a 5-year financial forecast with budget assumptions, challenges, goals, and strategies. January 28, 2025, Council Meeting – 11.a Five-Year Financial Forecast • Spring 2025 - Staff Develop Work Plans
o The budget process begins in the Finance Department, with the preparation of baseline revenue and expenditure assumptions. Baseline expenditures include personnel assumptions, with a comprehensive assessment of the impact of current or anticipated employee Memorandums of Understanding (MOU) which govern employee costs such as benefits and cost of living adjustments. Other known costs, such as debt obligations and self-insurance funding requirements are also projected, to arrive at a baseline budget. o City departments attend a budget kickoff meeting where they receive the budget development calendar, a summary of the baseline budget, and direction on balancing measures, if applicable. The baseline budget represents the amount of funding available to maintain programs and current service levels and make progress towards achieving the City’s major goals. Departments define budgetary needs in relation to services, programs, and related strategic goals. Departments also identify capital projects and funding sources for those projects during this time. Internal review of department budget submissions takes place, with executive leadership recommending adjustments and providing guidance on the budget submissions of each City department. o Staff will finalize operating and Capital Improvement Plan (CIP) preliminary budgets that reflect the established major City goals and the financial forecast. • May 13, 2025 - Review of CIP
o Staff presented a 10-Year CIP for review and input from the City Council and by the Planning Commission for determination of consistency with the General Plan. May 13, 2025 Council Meeting – 11.c Ten Year Capital Improvement Program, Measure E-24 Local Sales Tax Fund Expenditure Program, and Measure O-06 Local Sales Tax Fund Expenditure Program
Step 4: The proposed operating budgets, work plans, and CIP were incorporated into a proposed FY 2025- 27 Biennial Budget for discussion and consideration by the Council on May 27, 2025. May 27, 2025 Council Meeting – 11.a Review Preliminary FY 2025-27 Biennial Operating Budget Step 5: Adoption of the FY 2025-27 Biennial Budget occurred on June 10, 2025, with funds appropriated on July 1, 2025. June 10, 2025 – Council Meeting—10.a Fiscal Year 2025-27 Biennial Budget

Guide to the Budget
29 TOC

MID-CYCLE BUDGET UPDATE/QUARTERLY REPORTS
The City Manager presents a Mid-Cycle Budget Update in June of the second year of a biennial budget cycle. This update includes necessary adjustments to the operating budget and personnel detail that have been identified by staff since the adoption of the Biennial Budget. For all budgets adopted, whether annual or biennial, quarterly fiscal updates are presented to the City Council to keep City leadership and the public apprised of the City’s financial condition throughout the budget period. The quarterly updates include recommended budget adjustments and fiscal strategies as needed to respond to the current fiscal state of the City.

ADJUSTMENTS TO THE ADOPTED BUDGET
The City Council may amend or supplement the adopted budget with the majority vote of at least three members to authorize the transfer of unused balances appropriated to one department or fund to another department or fund or to appropriate available funds not included in the budget. The City Manager is legally authorized to transfer budgeted amounts between divisions and accounts within the same department and fund over the course of a fiscal year. Through City Council adoption of the budget resolution (page 205), the Director of Administrative Services/City Treasurer may authorize interfund transfers as required provided funds are available, or as authorized by the City Council through the adoption of the budget. City Council approval is required for all transfers from unappropriated fund balances or fund balance contingency reserves.

BASIS OF BUDGETING
The modified accrual basis of accounting is used by all General, Special Revenue, Debt Service, and Capital Projects Funds. This means that revenues are recognized when they become both measurable and available. Measurable means the amount of the transaction can be determined, and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when liabilities are incurred, except that principal and interest payments on long-term debt are recognized as expenditures when due. The full accrual basis of accounting is utilized by all Enterprise and Internal Service Funds. This means that revenues are recorded when earned and that expenses are recorded at the time liabilities are incurred.

The City’s basis for budgeting is consistent with accounting principles generally accepted in the United States of America and with the City’s financial statements as presented in the Annual Comprehensive Financial Report (ACFR). Exceptions are as follows:
• Capital expenditures within the Enterprise Funds are recorded as assets on an accounting basis but are shown as expenditures on a budgetary basis.
• Depreciation of capital assets and amortization of various deferred charges are recorded on an accounting basis only. These charges are not reflected in the budget document.

Guide to the Budget
30 TOC
• Continued/Carryover appropriations represent previously budgeted funds unexpended at the end of the applicable budget period. Carryover requests approved by the City Council are added to the City’s current budget period but are not included in the budget document or original budget submission to the City Council.
• Certain funding, such as grant funding, is not included in the budget document; these items are appropriated as needed throughout the fiscal year with approval from the City Council.

Fund Structure
31 TOC

BUDGETARY FUND BALANCE
In a governmental agency, fund balance is considered in two separate, but intrinsically related, settings:
budgetary fund balance and Annual Comprehensive Financial Report (ACFR) fund balance. Budgetary fund balance is a prospective calculation of ending fund balance based on estimated revenues and expenditures, whereas ACFR fund balance is a retrospective calculation based on the difference between fiscal year end assets and liabilities, and deferred inflows or outflows of resources. Following the financial audit of the active fiscal year, budgetary ending fund balance is reconciled to ACFR fund balance, accounting for actual fiscal year performance and any differences in the budgetary versus accounting basis of reporting.

ACFR fund balance may be classified in one of five classifications defined in GASB Statement 54: Fund Balance Reporting and Governmental Fund Type Definitions as described below:
• Non-spendable Fund Balance: Cannot be spent due to form or must be maintained intact legally or contractually.
• Restricted Fund Balance: Subject to externally enforceable limitations by law, enabling legislation, or limitations imposed by creditors or grantors.
• Committed Fund Balance: May only be used for specific purposes due to formal action of the City Council through adoption of a resolution prior to the end of the fiscal year. • Assigned Fund Balance: Reflects the City’s intended use of resources. • Unassigned Fund Balance: The residual classification that includes all spendable amounts not contained in the other classifications.

For the purposes of budgetary fund balance, the last three classifications listed above (Committed, Assigned, and Unassigned) are generally not legally restricted by external parties or forces.

FUND STRUCTURE
The City records financial activity in six fund types as guided by generally accepted accounting principles (GAAP): General Fund, Special Revenue Funds, Debt Service Funds, Enterprise Funds, Private Purpose Funds, and Agency (Fiduciary) Funds. Within each fund type are multiple funds that relate to a city department or multiple city departments.

General Fund
The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The General Fund is generally used to account for functions of the City that are principally supported by taxes and intergovernmental revenues. The General Fund budget provides the majority of services commonly associated with local city government (e.g. public safety, recreation, community development, general government, and public works).

Measure O-06 Sales Tax Fund
The Measure O-06 Fund is a component of the General Fund and is used to separately account for and report the use of Measure O-06 revenue derived from a local 1/2% sales tax approved by the City's voters in November 2006.

Fund Structure
32 TOC
Measure E-24 Sales Tax Fund
The Measure E-24 Fund is a component of the General Fund and is used to separately account for and report the use of Measure E-24 revenue derived from a local 1% sales tax approved by the City's voters in November 2024.

Special Revenue Fund
Special Revenue Funds are used to account for specific monies that are legally restricted for use for a particular purpose. Miscellaneous grants and other restricted funding are recorded as Grants of within a Restricted Programs fund. Grants are budgeted by individual Council action, whereas restricted funding, if recurring, guaranteed, and predictable, is budgeted in the City’s budget. • Developer Impact Fees are collected from developers for the expansion of the existing City service in order to serve future development, the budget includes 9 Special Revenue Funds:
o Fire Protection Fund: impact fees collected from developers for the expansion of the existing fire station in order to serve future development. o Police Protection Fund: impact fees collected from developers for the expansion of the existing police facility in order to serve future development. o Park Development (Quimby) Fund: 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.
o Recreation Community Center Fund: 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. o Park Improvement Fund: 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.
o Traffic Signalization Fund: impact fees collected from developers and used for the future cost of traffic signals.
o Traffic Circulation Fund: developer traffic mitigation measure fees charged as a result of an environmental review.
o Transportation Facility Fund: 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.
o Drainage Facility Fund: impact fees paid by development and are restricted to improving drainage within the City.
• The Community Development Department budget includes three Special Revenue Funds:
o In-Lieu Affordable Housing Fund: This fund accounts for monies paid by developers in meeting the City's mandatory affordable housing requirements. o In-Lieu Underground Utility Fund: This fund accounts for monies paid by developers in meeting the City's underground utility requirements.
o Community Development Block Grant (CDBG) Fund: This program is a flexible program that provides the City with resources to address a wide range of unique community development needs.
• The Police Department budget includes one Special Revenue Fund:

Fund Structure
33 TOC
o State COPS Block Grant Fund: 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.
• The Public Works Department’s budget includes seven Special Revenue Funds:
o Three Landscape Maintenance District Funds account for and report on the activities of landscape maintenance districts.
o The Special Gas Tax Fund is used to account for the construction and maintenance of city streets funded by the City’s share of State gasoline taxes. o Transportation Fund: 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.
o Water Neutralization Fund: 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. o 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 a desalination plant, recycled water, a scalping plant, etc. • The Recreation Services Department budget includes one Special Revenue Fund:
o Tourism Business Improvement District (TBID) Fund: 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.
• Other Special Revenue Funds include:
o Public Access Television Fund: This fund accounts for fees collected from Charter Communications that are restricted for support of public, education, and government access programming and equipment.

Enterprise Funds
The City’s enterprise funds are a type of proprietary fund used to manage services delivered to the public on a user-fee basis, operating much like a private business. These funds are self‑supporting; revenues come primarily from service charges, and they cover both operating expenses and capital costs. The City has 5 Enterprise Funds: Sewer, Sewer Facility, Water, Lopez, and Water Facility.

Agency Funds
The City’s agency funds are used to account for assets held temporarily on behalf of others—such as the Successor Agency to RDA, Downtown Parking, and the Sanitation Distribution funds. They are not City revenues and are excluded from government-wide financial reporting of expenses or fund balances.

Fund Structure
34 TOC

Fund Structure
35 TOC

GOVERNMENTAL FUND TYPES
General Fund – is the general operating fund of the City and accounts for all unrestricted financial resources except those required to be accounted for in another fund.

Special Revenue Funds – to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or capital projects) that are restricted by law or administrative action to expenditures for specific purposes.

Debt Service Funds – to account for the accumulation of resources for and the payment of interest and principal on general long-term debt and related costs. The City currently does not have general long-term debt that would be obligated to use a debt service fund.

Capital Project Funds – to account for financial resources segregated for the acquisition of major capital projects or facilities (other than those financed by proprietary fund types).

PROPRIETARY FUND TYPES
Enterprise Funds – to account for operations in a manner similar to private business enterprises, where the intent is to have the costs (expenses, including depreciation) of providing goods or services to the general public to be financed or recovered primarily through user charges.

FIDUCIARY FUND TYPES
Agency Funds – to account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units, and/or other funds. These funds are custodial in nature (assets correspond with liabilities) and do not involve measurement of results of o

36 TOC

FINANCIAL POLICIES

Financial Policies
37 TOC
A Fiscal Policy is an adopted guideline that establishes goals for the allocation of public resources in the manner best suited to the efficient provision of services to residents and visitors within the City. While not all of the goals may be achievable in the current year, the existence of such goals will serve to guide the City Council in its decision-making.

The budget document is a policy statement and financial plan that allocates City resources, such as personnel, materials, and equipment, in tangible ways to achieve the general goal of a balanced community. It is, therefore, prudent for the City Council to have adopted a Fiscal Policy to guide staff through the budget-development process. The Fiscal Policy is a guideline, not an absolute. The Policy describes goals the Council seeks to achieve to secure fiscal solvency, superior levels of customer service, and maximum cost efficiency. The Policy components are as follows:

FISCAL MANAGEMENT
• Maintain safety and liquidity while maximizing investment revenue. • Utilize grants and subsidies from other sources when possible and cost-effective. • Charge fees for services that reflect the cost of providing such services. • Review fees annually, establish actual costs, adjust existing fees, and establish new fees as needed.
• Recover costs when possible for facility use, planning and building services, code enforcement, community events and administrative costs.
• Develop short and long-term financial plans.
• Develop fiscal models to reflect development and planning policies to ensure resources are adequate to provide service needs.
• Maintain a PERS Retirement Fund in which the City funds retirement costs on an annual basis at no lower than the projected long-term average rates in order to eliminate the fluctuations in PERS costs and provide long-term stability.

NEW SERVICES
Add new services only when a need has been identified and when adequate staffing and funding sources have been provided.

PUBLIC SAFETY
Provide funding to maintain the safety of the citizens of Arroyo Grande at a level that ensures that Arroyo Grande maintains its position as one of the safest cities in San Luis Obispo County.

FACILITIES
• Plan for new facilities only if operations and maintenance costs for those new facilities will not negatively impact the operating budget.

Financial Policies
38 TOC
• Provide adequate routine maintenance each year to avoid the cost of deferred maintenance.

OPERATIONAL EFFICIENCIES
• Provide City services in the most cost-effective manner. • Provide staffing levels that allow employees to respond promptly to service requests from the public.
• Utilize consultants and temporary help for special projects or peak workload periods. • Utilize community expertise on a voluntary basis as appropriate. • Ensure that fee-supported services are staffed appropriately to render the services for which customers have paid.
• Work through regional agencies to share costs for local and mandated programs whenever possible.

EMPLOYEE DEVELOPMENT
Attract and retain competent employees for the City workforce by compensating employees fairly, providing adequate training opportunities, ensuring safe working conditions, and maintaining a professional work environment.

ECONOMIC DEVELOPMENT
• Promote a mix of businesses that contribute to a balanced community, develop programs to enhance and retain existing businesses, and pursue new developments and businesses that add to but do not detract from the City’s economic base.
• Maximize opportunities for the existing business community, thereby increasing existing sources of revenue to meet the increasing demands for service.

RETIREE MEDICAL
Pre-fund retiree medical benefit costs.

Financial Policies
39 TOC

DESCRIPTION OF FUNDS
Fund Accounting Systems
The City uses funds and account groups to report on its financial position and the results of its operations.

Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain City functions or activities.

A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available resources. The City maintains the following fund types and account groups:

TYPES OF FUNDS
Governmental Fund Types
General Fund – the general operating fund of the City and accounts for all unrestricted financial resources except those required to be accounted for in another fund.

Special Revenue Funds – to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or capital projects) that are restricted by law or administrative action to expenditures for specific purposes.

Debt Service Funds – to account for the accumulation of resources for and the payment of, interest and principal on general long-term debt and related costs. The City currently does not have general long term debt that would be obligated to use a debt service fund.

Capital Project Funds – to account for financial resources segregated for the acquisition of major capital projects or facilities (other than those financed by proprietary fund types).

Proprietary Fund Types
Enterprise Funds – to account for operations in a manner similar to private business enterprises where the intent is to have the costs (expenses, including depreciation) of providing goods or services to the general public to be financed or recovered primarily through user charges.

Fiduciary Fund Types
Agency Funds – to account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units, and/or other funds. These funds are custodial in nature (assets correspond with liabilities) and do not involve measurement of results of operations.

Financial Policies
40 TOC
Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement. All Governmental funds and Agency funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. In those funds where revenue is recognized on a modified accrual basis the following revenues may be accrued: property and sales taxes, revenue from the use of money and property, interfund transfers, unbilled service receivables and intergovernmental revenue.

Licenses, permits, fines and forfeitures and similar items are, for the most part, not accrued and consequently are not recorded until received. Agency funds are purely custodial (assets equal liabilities) and thus do not involve measurement of results of operations. The assets and liabilities are accounted for on a modified accrual basis with the exception of the City’s Deferred Compensation Plan, which is accounted for on a market value basis in accordance with Statement No. 2 of the Governmental Accounting Standards Board (GASB).

Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available, in accordance with National Council of Governmental Accounting GASB 33. In this context, available means when receivable and due, when payment is expected within the current period, or within sixty (60) days of year end, and thus available to pay debts of the current period.

Grants, entitlements, or shared revenues recorded in governmental funds are recognized as revenue in the accounting period when they become susceptible to accrual, i.e. both measurable and available (modified accrual basis).

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Principal and interest on general long-term debt is recognized when due.

All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned and become measurable, expenses are recognized when they are incurred if measurable.

The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. Deferred revenues also arise when the City receives resources before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized.

Financial Policies
41 TOC

BUDGETARY PROCESS
The City uses the following procedures in establishing the budgetary data reflected in the financial statements: after January 1, Department Directors prepare estimates for required appropriations for the fiscal year commencing the following July 1. The departmental estimates are presented to the City Manager for review. A Preliminary Budget is prepared that includes estimated expenditures and forecasted revenues for the fiscal year. Prior to July 1, the City Manager submits a Preliminary Budget for the upcoming fiscal year to the City Council. The Preliminary Budget includes a summary of the proposed expenditures and financial resources of the City, as well as historical data for preceding fiscal periods.

Public meetings are conducted to obtain citizens’ comments. The City Council adopts the budget by June

30. Budgets are legally adopted for the general, special revenue, enterprise funds, agency funds and all capital projects programs during the fiscal year ended June 30. The appropriated budget covers substantially all City expenditures. All appropriated amounts shown are as originally adopted or as amended by the City Council. During the year, supplementary appropriations may be approved.

Unexpended appropriations lapse at the year-end, unless approved for carryover by the City Manager to address multi-year projects or initiatives.

Department Directors are authorized to transfer budgeted amounts within their departments, within the same fund, with the approval of the City Manager. The City Manager has authority to make transfers of appropriations between departments, provided those changes do not impact budgeted year-end fund balances. Only the City Council may authorize transfers of appropriations between funds. Formal budgetary integration is employed as a management control device during the fiscal year for all governmental funds.

ENCUMBRANCES
Encumbrances represent commitments related to unperformed contracts for goods or services.

Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of resources are recorded to reserve that portion of the applicable appropriation, is utilized in all funds. Encumbrances outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. Amounts encumbered at year-end are reappropriated in the following year.

BUDGET BASIS OF ACCOUNTING
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

CASH AND INVESTMENTS
Cash includes amounts in demand deposits. Investments, including accrued interest, are stated at fair market value.

Financial Policies
42 TOC

INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “due from other funds” or “due to other funds” on the balance sheet.

INVENTORIES
Inventories of materials and supplies are carried at cost on a first-in, first-out basis. The City uses the consumption method for accounting for inventories.

FIXED ASSETS
All purchased fixed assets are valued at cost where historical records are available, and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated, as applicable, over the remaining useful lives of the related fixed assets.

In accordance with GASB 34, all Public domain (“infrastructure”) fixed assets are now capitalized.

Examples of infrastructure assets are: roads, bridges, curbs and gutters, streets and sidewalks, drainage and lighting systems.

Depreciation of fixed assets is computed using the straight-line method. The estimated useful lives are as follows:

Buildings and structures 40 – 55 years
Machinery 3 – 10 years
Equipment 5 – 20 years

COMPENSATED ABSENCES
Vested or accumulated personal leave of employees, that is expected to be liquidated with expendable available financial resources, is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated personal leave not expected to be liquidated with expendable available financial resources are reported in the City’s financial statements as long-term debt.

No expenditure is reported for those amounts. Vested or accumulated personal leave of proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees.

Financial Policies
43 TOC

PROPERTY TAXES
The San Luis Obispo County Assessor and Tax Collector perform the duties of assessing and collecting property tax, respectively. Tax levies cover the period from July 1 to June 30 of each year. All tax liens attach annually on the first day in March proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as of March 1.

Secured property taxes are levied against real property and are due and payable in two equal installments.

The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year. These taxes become delinquent if not paid by August

31. GRANTS
Federal and state grant revenues are accrued to the extent expenditures are incurred. All such grants are subject to audit and adjustment by the grantor.

LONG-TERM OBLIGATIONS
Long-term debt is recognized as a liability of a governmental fund when due or when resources have been accumulated in the debt service fund for payment early in the following year. Other long-term obligations to be financed from expendable available financial resources are reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the financial statements.

Long-term liabilities to be financed from proprietary fund operations are accounted for in those funds.

FUND EQUITY
Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. These reserves represent those portions of fund equity not available for expenditure or that are legally segregated for a specific future use of financial resources.

Fund designations are established to indicate tentative plans for the use of current financial resources in the future.

Financial Policies - Fund Balance
44 TOC

INTRODUCTION
This policy was adopted by the City Council on June 11, 2024 with Resolution 5371. The purpose of this document is to state the policy goals of the City of Arroyo Grandes’ General Fund reserves, and the budgeting practices that maintain such reserves. Although there is no formula that defines a completely adequate Fund Balance, a conservative approach should enable the City to finance its operations and meet unplanned expenditures without having to incur short-term debt or raise new revenues.

These policies are intended to provide guidelines for budget decisions as to the appropriate use of General Fund resources and the maintenance of adequate reserves for contingencies, emergencies, capital improvements, and other such uses as determined by the City Council. After amounts projected to be available from the year-end fund balance of the General Fund are allocated to Assigned categories, the remaining amount, referred to as the Unassigned Fund Balance, will be reserved for contingencies as further set forth below.

PURPOSE
The purpose of the Fund Balance and Reserve Policy is to ensure strong fiscal management to guide the City of Arroyo Grande’s financial planning, while continuing to provide services to the residents of the City. Additionally, the policy will: aide in reducing financial impacts of temporary revenue short falls and unpredicted one-time expenditures, such as disasters or catastrophic events; assist the City in responding to challenges of a changing economic environment; and preserve adequate reserve levels to improve or maintain the City’s credit worthiness. The Fund Balance and Reserve Policy establishes the appropriate level of reserves in the Consolidated General Fund. The policy sets conditions warranting the use of reserves and outlines the plan to replenish them if the balances fall below the levels established in this policy.

BACKGROUND
Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, was implemented in FY 2010-11 with the intent of improving financial reporting by providing fund balance categories that will be more easily understood. The categories are more clearly defined to make the nature and extent of the constraints placed on a government’s fund balance more transparent. This Fund Balance and Reserve Policy establishes the procedures for reporting unrestricted fund balance in the financial statements. The policy also authorizes and directs the Administrative Services Director to prepare financial reports which accurately categorize fund balance as per GASB Statement No. 54.

Financial Policies - Fund Balance
45 TOC
POLICY
Fund balance is essentially the difference between the assets and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent. • Non-spendable fund balance: Amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. • Restricted fund balance: To be used for specific purposes stipulated by external resource providers, constitution, or through enabling legislation. • Committed fund balance: To be used for specific purposes as established by City Council. • Assigned fund balance: Amounts intended for a specific purpose as authorized by the City Manager, but are neither restricted nor committed.
• Unassigned fund balance: The residual amount not contained in the other classifications. The first two components listed above, non-spendable and restricted fund balances, are not addressed in this policy due to the nature of the restrictions. Examples of non-spendable fund balance include prepaid expenses, loan receivables, and inventory. Restricted fund balance is either imposed by laws or constrained by grantors, contributors, or laws or regulations of other governments. This policy is focused on financial reporting of unrestricted fund balance, which is the last three components listed above. These three components are further defined below.

These funds may be pooled for investment earning purposes only and interest earned shall be credited to each individual fund based upon the proportionate share of the revenues invested.

Committed Fund Balance
The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These Committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. Five types of committed reserves are set aside by the City including Operating Reserve, Pension and Other Post-Employment Benefits Reserve, Information Technology Reserve, Fleet Replacement Reserve, and Facility Repairs Reserve. The intended use of each reserve and the Fund(s) in which they are held is outlined below. To develop the appropriate amount of reserves, the City considered guidance from the Government Finance Officers Association (GFOA), as well as the current economic conditions and needs of the City. Reserve balances will be reviewed at the end of each fiscal year to ensure compliance with this Policy.
• Operating Reserve – The GFOA recommends that general-purpose governments maintain reserves in the general fund of no less than two months (16.67%) of annual general fund operating revenues or annual general fund operating expenditures. The City has established an Operating Reserve in the Consolidated General Fund to mitigate financial and service delivery risk due to

Financial Policies - Fund Balance
46 TOC
unexpected revenue shortfalls or unanticipated critical expenditures. The purpose of this reserve is to provide budgetary stabilization and not to serve as an alternative funding source for new programs and ongoing operating expenditures. It is for one-time needs and expenditures identified in the budget and not ongoing structural challenges. The City will aim to maintain a minimum balance in the Operating Reserves equal to approximately 15%, with a goal of 20% of the City’s annual operating expenditures.
• Pension and Other Post-Employment Benefits Reserve – Funds set aside under this reserve in the Consolidated General Fund to be used to further mitigate costs associated with pensions and other post-employment benefits. These funds will be used: as a funding source for potential additional discretionary payments to pay down unfunded liability; or held in the reserve account; or placed in a City Council approved trust instrument. Funds may be used for such purposes as a supplemental funding source for unanticipated increases to the annual pension and/or other post-employment benefit costs resulting from future actuarial assumptions and investment market volatility, or to make the City’s annual payments during times of economic uncertainty as brought on by such circumstances as a recession resulting in funding gaps. • Information Technology Reserve – This fund, established in the Consolidated General Fund, provides for information system and technology projects including communications systems, hardware, and software, which are capital in nature. Technology can change rapidly within the information systems sphere and often comes at a large cost. This reserve helps the City keep pace with changes in information technology and take advantage of improvement/efficiency opportunities in this area. This reserve will not exceed 1.0% of annual Consolidated General Fund operating expenditures.
• Fleet Replacement Reserve – The City will maintain a Fleet Replacement Reserve in the Consolidated General Fund to provide for the timely replacement of existing vehicles should they come to the end of their useful life or become inoperable. This reserve will not exceed 1.0% of annual Consolidated General Fund operating expenditures. • Facility Repairs Reserve – This reserve is set up in the Consolidated General Fund to address any unforeseen maintenance and repairs or planned replacements within City owned facilities. This reserve will not exceed 1.0% of annual Consolidated General Fund operating expenditures.

Assigned Fund Balance
Amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. This policy herby delegates the authority to assign amounts to be used for specific purposes to the City Manager or designee for the purpose of reporting these amounts in the annual financial statements. Examples of assigned fund balance include:

Financial Policies - Fund Balance
47 TOC
• Encumbered Fund balance levels must be sufficient to meet funding requirements for materials or services ordered, but not received, before the end of the fiscal year. • Continuing Appropriations Fund balance levels must be sufficient to meet funding requirements for projects approved in prior years and which must be carried forward into the new fiscal year. • Other Designations Assigned fund balance can also include amounts designated for certain programs, additional reduction of debt, special events, or other non-recurring expenditure needs of the City.

Unassigned Fund Balance
Unassigned fund balance is the residual positive net resources in excess of what can properly be classified in one of the other four categories. The Consolidated General Fund is the only fund that may report a positive (surplus) unassigned balance. Conversely, any governmental fund in a negative (deficit) position could report a negative amount of unassigned fund balance.

Fund Balance Classification
The accounting policies of the City consider restricted fund balance to have been spent first when the expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available.

Similarly, when the expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and the unassigned amounts.

Surplus
Since a surplus of unassigned fund balance does not represent a recurring source of revenue, it shall not be used to fund a recurring expense; however, the surplus may be appropriated for use to fund a onetime expenditure or use not already funded through an appropriation. If it is determined there is an operating surplus, the City Council may appropriate funds for the following nonrecurring purposes, listed in order of priority:
• Surplus funds may be used to meet the minimum Operating Reserve requirement; • Any surplus may be transferred to reduce the unfunded pension liability and/or any other unfunded postemployment benefit liabilities;
• If there is short-term debt within the General Fund, the surplus may be applied to reduce, or eliminate, the debt if determined to be advantageous for the City. If a borrowing is scheduled, the surplus may be used to reduce the principal amount the City needs to obtain if determined to be advantageous for the City; and
• Surplus funds may be used for capital improvements and equipment purchases that are not financed with borrowings or other contributions.

Financial Policies - Fund Balance
48 TOC
Replenishment of Reserves
If the Operating Reserve balance established in this policy falls below the minimum required level, the City shall strive to restore it to the minimum required balance by any feasible means, including, but not limited to, adopting a budgetary surplus; applying any cost savings, over-realized revenues, and/or surpluses realized within the applicable fund.

If the Information Technology Reserve, Fleet Replacement Reserve, or Facility Repairs Reserve fall below the 1.0% of annual Consolidated General Fund operating expenditures. The levels will be replenished when surplus funds become available.

These guidelines may be suspended, in whole or part, if financial or economic circumstances prevent meeting any or all of the timelines. These policy guidelines may also be amended by action of the City Council from time to time.

This policy is instituted to provide a measure of protection for the City against unforeseen circumstances and to comply with GASB Statement No. 54. No other policy or procedure supersedes the authority and provisions of this policy.

Enterprise Fund Reserves
Reserves for Enterprise Funds – Water and Wastewater (Sewer): Revenues contained in these funds are restricted and may only be used for their described purposes below. In no event will these funds be used to fund general fund services.
• Operating Reserve – The purpose of the Enterprise Fund Operating Reserve is to provide working capital to meet cash flow needs during normal operations and support the operation, maintenance and administration of the utility. This reserve ensures that operations can continue should there be significant events that impact cash flows. The target balance to be maintained is 90 days (25 percent) of the current annual operating expense budget. • Capital Reserve – The purpose of the Enterprise Fund Capital Reserve is to fund future replacement of assets and CIP projects. The Capital reserves are used to fund the construction of the projects as the projects progress and the funds are expended. The reserve target has been established at $500,000 each for the water and wastewater systems through prior cost of service studies.

Lopez Fund Reserve – The Enterprise Fund Lopez Fund accounts for the revenue and expenditures of the surface water purchases from the County. Revenues are collected through the water rates in sufficient amounts to provide for a transfer of revenue to meet the expenses in the Lopez Fund. A reserve is maintained in the fund at least equal to annual Lopez debt service

Financial Policies – Debt Management
49 TOC

INTRODUCTION
This Debt Management Policy (the “Debt Policy”) was adopted by the City Council on March 13, 2018 with Resolution 4836. This Debt Policy will apply to any debt issued by any public agency for which the City Council acts as its legislative body.

The Debt Policy has been developed to provide guidance in the issuance and management of debt by the City or its related entities and is intended to comply with section 8855(i) of the California Government Code effective on January 1, 2017. The main objectives are to establish conditions for the use of debt; to ensure that debt capacity and affordability are adequately considered; to minimize the City’s interest and issuance costs; to maintain the highest possible credit rating; to provide complete financial disclosure and reporting; and to maintain financial flexibility for the City.

Debt, properly issued and managed, is a critical element in any financial management program. It assists in the City’s effort to allocate limited resources to provide the highest quality of service to the public. The City understands that poor debt management can have ripple effects that hurt other areas of the City. On the other hand, a properly managed debt program promotes economic growth and enhances the vitality of the City for its residents and businesses.

POLICY

1. Findings
This Debt Policy shall govern all debt undertaken by the City. The City hereby recognizes that a fiscally prudent debt policy is required in order to:
• Maintain the City’s sound financial position.
• Ensure the City has the flexibility to respond to changes in future service priorities, revenue levels, and operating expenses.
• Protect the City’s credit-worthiness.
• Ensure that all debt is structured in order in a manner that protects both current and future taxpayers, ratepayers and constituents of the City. • Ensure that the City’s debt is consistent with the City’s planning goals and objectives and capital improvement program or budget, as applicable.
• Encourage those that benefit from a facility/improvement to pay the cost of that facility/improvement without the need for the expenditure of limited general fund resources.

2. Policies
A. Purposes For Which Debt May Be Issued
The City will consider the use of debt financing primarily for capital improvement projects (CIP) when the project’s useful life will equal or exceed the term of the financing and when resources are identified sufficient to fund the debt service requirements. An exception to this CIP driven focus is the issuance of short-term instruments such as tax and revenue anticipation notes, which are to be used for prudent cash management purposes and conduit financing, as described below. Bonded debt should not be issued for projects with minimal public benefit or support, or to finance normal operating expenses.

Financial Policies – Debt Management
50 TOC
If a department has any project which is expected to use debt financing, the department director is responsible for expeditiously providing the City Manager and the Administrative Services Director with reasonable cost estimates, including specific revenue accounts that will provide payment for the debt service. This will allow an analysis of the project’s potential impact on the City’s debt capacity and limitations. The department director shall also provide an estimate of any incremental operating and/or additional maintenance costs associated with the project and identify sources of revenue, if any, to pay for such incremental costs.
(i) Long-Term Debt. Long-term debt may be issued to finance or refinance the construction, acquisition, and rehabilitation of capital improvements and facilities, equipment and land to be owned and/or operated by the City.
(a) Long-term debt financings are appropriate when the following conditions exist:
• When the project to be financed is necessary to provide basic services. • When the project to be financed will provide benefit to constituents over multiple years. • When total debt does not constitute an unreasonable burden to the City and its taxpayers and ratepayers.
• When the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring. (b) Long-term debt financings will not generally be considered appropriate for current operating expenses and routine maintenance expenses.
(c) The City may use long-term debt financings subject to the following conditions:
• The project to be financed has been or will be approved by the City Council. • The weighted average maturity of the debt (or the portion of the debt allocated to the project) will not exceed the average useful life of the project to be financed by more than 20%, unless specific conditions exist that would mitigate the extension of time to repay the debt and it would not cause the City to violate any covenants to maintain the taxexempt status of such debt, if applicable. • The City estimates that sufficient income or revenues will be available to service the debt through its maturity.
• The City determines that the issuance of the debt will comply with the applicable requirements of state and federal law.
• The City considers the improvement/facility to be of vital, time-sensitive need of the community and there are no plausible alternative financing sources (d) Periodic reviews of outstanding long-term debt will be undertaken to identify refunding opportunities. Refunding will be considered (within federal tax law constraints, if applicable) if and when there is a net economic benefit of the refunding. Refundings which are non-economic may be undertaken to achieve City objectives relating to changes in covenants, call provisions, operational flexibility, tax status of the issuer, or the debt service profile.

In general, refundings which produce a net present value savings of at least three (3) percent of the refunded debt will be considered economically viable. Refundings which produce a net

Financial Policies – Debt Management
51 TOC
present value savings of less than three (3) percent or negative savings will be considered on a case-by-case basis, and are subject to Council approval. (ii) Short-term debt. Short-term borrowing may be issued to generate funding for cash flow needs in the form of Tax and Revenue Anticipation Notes (TRAN).

Short-term borrowing, such as commercial paper, and lines of credit, will be considered as an interim source of funding in anticipation of long-term borrowing. Short-term debt may be issued for any purpose for which long-term debt may be issued, including capitalized interest and other financingrelated costs. Prior to issuance of the short-term debt, a reliable revenue source shall be identified to secure repayment of the debt. The final maturity of the debt issued to finance the project shall be consistent with the economic or useful life of the project and, unless the Council determines that extraordinary circumstances exist, must not exceed seven (7) years.

Short-term debt may also be used to finance short-lived capital projects; for example, the City may undertake lease-purchase financing for equipment, and such equipment leases may be longer than seven (7) years.
(iii) Financings on Behalf of Other Entities. The City may also find it beneficial to issue debt on behalf of other governmental agencies or private third parties in order to further the public purposes of City.

In such cases, the City shall take reasonable steps to confirm the financial feasibility of the project to be financed and the financial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein. In no event will the City incur any liability or assume responsibility for payment of debt service on such debt.

B. Types of Debt
In order to maximize the financial options available to benefit the public, it is the policy of the City of Arroyo Grande to allow for the consideration of issuing all generally accepted types of debt, including, but not exclusive to the following:
• General Obligation (GO) Bonds: General Obligation Bonds are suitable for use in the construction or acquisition of improvements to real property that benefit the public at large. Examples of projects include libraries, parks, and public safety facilities. All GO bonds shall be authorized by the requisite number of voters in order to pass. • Revenue Bonds: Revenue Bonds are limited-liability obligations tied to a specific enterprise or special fund revenue stream where the projects financed clearly benefit or relate to the enterprise or are otherwise permissible uses of the special revenue. An example of projects that would be financed by a Revenue Bond would be improvements to a water system, which would be paid back with money raised from the rates and charges to water users. Generally, no voter approval is required to issue this type of obligation but in some cases, the City must comply with proposition 218 regarding rate adjustments.
• Lease-Backed Debt/Certificates of Participation (COP/Lease Revenue Bonds): Issuance of Lease-backed debt is a commonly used form of debt that allows a City to finance projects where the debt service is secured via a lease agreement and where the payments are budgeted in the annual budget appropriation by the City from the general fund. LeasePage 82 of 548 Financial Policies – Debt Management
52 TOC
Backed debt does not constitute indebtedness under the state or the City’s constitutional debt limit and does not require voter approval.
• Special Assessment/Special District Debt: The City will consider requests from developers for the use of debt financing secured by property based assessments or special taxes in order to provide for necessary infrastructure for new development only under strict guidelines adopted by the Council, which may include minimum value-to-lien ratios and maximum tax burdens. Examples of this type of debt are Assessment Districts (AD) and Community Facilities Districts (CFD) or more commonly known as Mello-Roos Districts. In order to protect bondholders as well as the City’s credit rating, the City will also comply with all State guidelines regarding the issuance of special district or special assessment debt, as well as any policy required to be adopted under Government Code Section 53312.7.

The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this Debt Policy.

To maintain a predictable debt service burden, the City will give preference to debt that carries a fixed interest rate. An alternative to the use of fixed rate debt is variable rate debt. The City may choose to issue securities that pay a rate of interest that varies according to a pre-determined formula or results from a periodic remarketing of securities. When making the determination to issue bonds in a variable rate mode, consideration will be given in regards to the useful life of the project or facility being financed or the term of the project requiring the funding, market conditions, credit risk and third party risk analysis, and the overall debt portfolio structure when issuing variable rate debt for any purpose. The maximum amount of variable-rate debt should be limited to no more than 20 percent of the total debt portfolio.

The City will not employ derivatives, such as interest rate swaps, in its debt program. A derivative product is a financial instrument which derives its own value from the value of another instrument, usually an underlying asset such as a stock, bond, or an underlying reference such as an interest rate. Derivatives are commonly used as hedging devices in managing interest rate risk and thereby reducing borrowing costs. However, these products bear certain risks not associated with standard debt instruments.

C. Relationship of Debt to Capital Improvement Program and Budget The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s capital budget and the capital improvement plan.

The City shall strive to fund the upkeep and maintenance of its infrastructure and facilities due to normal wear and tear through the expenditure of available operating revenues. The City shall seek to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear, unless a specific revenue source has been identified for this purpose, such as Gas Tax funds.

The City shall integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City’s public purposes.

The City shall seek to issue debt in a timely manner to avoid having to make unplanned expenditures for

Financial Policies – Debt Management
53 TOC
capital improvements or equipment from its general fund.

D. Policy Goals Related to Planning Goals and Objectives The City is committed to financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. The City intends to issue debt for the purposes stated in this Debt Policy and to implement policy decisions incorporated in the City’s annual operating budget.

It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

The City will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates and charges.

Except as described in Section 2.A., when refinancing debt, it shall be the policy goal of the City to realize, whenever possible, and subject to any overriding non-financial policy considerations minimum net present value debt service savings equal to or greater than 3% of the refunded principal amount.

E. Internal Control Procedures
When issuing debt, in addition to complying with the terms of this Debt Policy, the City shall comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post-issuance compliance, and investment of bond proceeds.

The City will periodically review the requirements of and will remain in compliance with the following:
• any continuing disclosure undertakings under SEC Rule 15c2-12, • any federal tax compliance requirements, including without limitation arbitrage and rebate compliance, related to any prior bond issues, and
• the City’s investment policies as they relate to the investment of bond proceeds.

Whenever reasonably possible, proceeds of debt will be held by a third-party trustee and the City will submit written requisitions for such proceeds. The City will submit a requisition only after obtaining the signature of the City Manager or the Finance Director.

F. Method of Sale
For the sale of any City-issued debt, the City Manager or the Finance Director or designee shall recommend the method of sale with the potential to achieve the lowest financing cost and/or to generate other benefits to the City. Potential methods of sale include:
• A competitive bidding process through which the award is based on, among other factors, the lowest offered true interest cost
• Negotiated sale, subject to approval by the City to ensure that interest costs are in accordance with comparable market interest rates
• Private placement sale, when the financing can or must be structured for a single or limited number of purchasers or where the terms of the private placement are more beneficial to the City than either a negotiated or competitive sale

Financial Policies – Debt Management
54 TOC
G. Waivers of Debt Policy
There may be circumstances from time to time when strict adherence to a provision of this Debt Policy is not possible or in the best interests of the City and the failure of a debt financing to comply with one or more provisions of this Debt Policy shall in no way affect the validity of any debt issued by the City in accordance with applicable laws.

55 TOC

FIVE-YEAR FINANCIAL

FORECAST

Five-Year Financial Forecast
56 TOC

INTRODUCTION
The General Fund is the City’s largest fund and is used to account for the revenues and expenditures that support most services commonly associated with local government, including police, fire, public works, community development, parks and recreation, and administration. The preparation of the Fiscal Year (FY) 2025-26 through FY 2029-30 Five-Year Financial Forecast is one of the first steps in the City’s budget process.

The City of Arroyo Grande’s Forecast is a long-range fiscal planning tool that serves as the framework for the development of the FY 2025-26 and FY 2026-27 General Fund Biennial Budget. The Forecast provides City Council, key stakeholders, and the public information about the City’s financial resources to facilitate discussion and decisionmaking regarding the General Fund budget.

The Forecast is a fiscally conservative, yet realistic, point-in-time estimate of the capacity of the General Fund to pay for both ongoing services and capital needs for the next five years. Because the General Fund is the City’s primary fund and is where most discretionary funds reside, this Forecast does not include other City funds such as the water, sewer, transportation, and park development funds. The Forecast takes into account cost inflation over its five-year timeline while also implementing a “Status Quo” approach to staffing and program levels by projecting costs into the future with no material changes.

As depicted in Table 1 below, the following keys items are highlights of this forecast:
• Projected beginning fund balance of $7.7 million for FY 2025-26; • $1.6 million higher beginning fund balance than the FY 2024-25 mid-cycle budget update, primarily due to:
• FY 2023-24:
o Revenues higher than estimate by $0.6 million;
o Expenditures lower than estimate by $0.5 million;
• FY 2024-25 Revenues expected to be $0.5 million higher; • General Fund shortfall projected to an average of $1.4 million annually throughout Forecast; • Fund balance drops below 15% minimum target by FY 2027-28 and to only 2% by FY 2029-30.

Table 1: Status Quo Financial Forecast

Five-Year Financial Forecast
57 TOC
Analysis of Major Revenues and Expenditures in Forecast Revenues
After an expected modest increase of 0.4% projected for FY 2024-25, revenues are projected to increase 3.2% annually thereafter. Chart 1 shows major revenue projections in the Forecast.

Chart 1: Major Key Revenue Projections
Property Tax
• 40% of General Fund revenue.
• Key drivers: annual increase assessed by the County of up to 2%, home sales, and home prices. • County Auditor-Controller’s office provided property tax estimates for FY 2024-25 and FY 2025-26. • Forecast includes growth of 4.25% annually.

Five-Year Financial Forecast
58 TOC
Chart 2: Property Tax Revenue Projections
Sales Tax
• 24% of General Fund revenue.
• Key drivers: consumer confidence, unemployment, consumer spending, business retention and development.
• City’s sales tax consultant provided estimates of 1.5% in FY 2024-25 and 2.8% in FY 2025-26. • Sales tax is projected to grow approximately 3% per year for remaining years of the Forecast.

Chart 3: Sales Tax Revenue Projections (General Fund only) Transient Occupancy Tax (TOT)
• 7% of General Fund revenue.
• Key drivers: lodging capacity, room rates, and occupancy rates. • TOT is forecasted to grow 3% annually throughout this Five-Year Forecast. • Forecast does not factor in any increase in room capacity.

Five-Year Financial Forecast
59 TOC
Chart 4: Transient Occupancy Tax Revenue Projections
Expenditures
Chart 5 shows the major expenditure categories and projected costs throughout the Forecast period.

Chart 5: Major Expenditure Projections
Salary and payroll taxes are forecasted to increase 4.3% in FY 2024-25 and 3.5% in FY 2025-26. The increase in FY 2025-26 would be 1.1% under the scenario that moved the cost of one additional police officer to Measure O Local Sales Tax funding. For the remainder of the Forecast salaries and taxes are projected to increase 3.5% per year.

The City’s unfunded accrued liability (UAL) is expected to increase 9% annually on average according to projections from CalPERS. Employee benefits are projected to increase on average 4.6% over the Forecast period. Health insurance costs alone account for 85% of all employee benefit costs. Workers’ compensation costs are forecasted to increase 8% per year over the Forecast period.

Five-Year Financial Forecast
60 TOC
After an expected 7.2% decrease in contractual and professional service costs in FY 2025-26, due to the completion of the General Plan update, these costs are expected to increase 2% per year for the remainder of the Forecast. During the period of the Forecast, the cost of services provided by Five Cities Fire Authority is projected to average $4.5 million annually.

General Fund, Measure O, and Measure E Consolidated Five-Year Forecast Sales tax revenue received from Measures O and E are deposited into separate funds in the City’s financial accounting system. This enhances transparency and allows for more efficient reporting on how these voter-approved tax sources are being spent. However, since sales tax funding from these two measures are designed to be used for programs that are also funded by the General Fund (e.g. public safety and street and road improvements), their budgets should be looked at as a whole when allocation decisions are being made. Table 3 below is a consolidation of all three funds (General, Measure O, Measure E) so the budgetary connection between the funds can be seen more clearly.

The numbers in Table 2 for the General Fund are the same as shown earlier in Table 1. The impact of allocating all Measure E funding to pavement improvement can be seen most clearly in the ending fund balance line for that fund, that shows a zero balance for the entire five-year forecast.

Five-Year Financial Forecast
61 TOC
Table 3 – General Fund, Measure O, and Measure E Consolidated Five-Year Forecast

62 TOC

COUNCIL GOALS

Council Goals
63 TOC
On December 9, 2024, an Arroyo Grande Community Priorities Survey was published. This 4-question online survey was posted on the City website and promoted on social media channels. The survey was open for one month and closed on January 15, 2025. The survey allowed community members to provide input regarding their thoughts on what the top priorities should be for the City over the next 2-3 years.

The survey included a combination of multiple-choice and short-response questions.

On February 10, 2025, the City Council held a Goal Setting Workshop focused on priorities for the FY 2025- 27 Budget. The Results of this Goal Setting Workshop were provided to the City Council on March 11, 2025.

The City Council established five (5) major City goals for staff to prioritize for the biennial budget cycle.

The goals were established considering the results of the community survey and input from the public and staff. This set of priorities has been used by staff to create work plans and the biennial budget. Here are the five major goals.

Council Goals
64 TOC

Council Goal’s Work Plans
65 TOC
The budget is built from base operations. Once the base budget is established, work plan budget items are considered. These items include program enhancements, staffing modifications, service modifications, etc., that fit within the City’s goals. The ability to add work plan items changes from year to year and is based on the amount of funding available.

Goal Strategy Task/Action Carryover Action
or New
Responsible
Department
Anticipated to
Start
Completion
Target

1.1 Revenue Generation 1.1a 400 W. Branch Disposition and Development Agreement Carryover CMO/CA/CD In Progress 1Q FY 2026-27 Pursue New Revenue
Sources

1.1b Develop a Special Event that drives visitation during shoulder and winter months and build destination awareness Carryover Rec In Progress 4Q FY 2025-26

1.1c Develop an Economic Development Program New CMO 1Q FY 2025-26 4Q FY 2025-26

1.2 Consider Cannabis as a Means
of Economic Development 1.2a Evaluate cannabis operations that bring in revenue New CD/CMO 1Q FY 2025-26 2Q FY 2025-26

1.2b Conduct study session with the City Council regarding potential cannabis ordinance Carryover CD/CA/CMO/LIS 3Q FY 2025-26 3Q FY 2025-26

1.2c Conduct study session with the City Council regarding potential cannabis development agreement Carryover CD/CA/CMO/LIS 4Q FY 2025-26 4Q FY 2025-26

1.2d Prepare and adopt cannabis ordinance, if directed by the City Council Carryover CD/CA/CMO 4Q FY 2025-26 1Q FY 2026-27

1.2e Evaluate feasibility of a Cannabis Tax, if directed Carryover CD/AS/CA/CMO 4Q FY 2025-26 1Q FY 2026-27

1.3 Transient Occupany Tax
Changes

1.3a Work on changes to TBID ordinance for expanded use of TOT funds New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26

1.3b Bring changes to TBID assessment and ordinance to Council for approval New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26

1.3c Evaluate opportunities related to City TBID and potential TOT Measure New CMO/Rec/LIS In Progress 4Q FY 2024-25

1.3d Hold study session with City Council and visitor serving accomodations to eliminate TBID New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26

1.3e If directed by Council, issue RFP for consultant to develop a survey and outreach strategy to community for TOT New CMO/LIS 1Q FY 2025-26 2Q FY 2025-26

1.3f Award contract for consultant to survey and develop outreach strategy for TOT New CMO/LIS 2Q FY 2025-26 2Q FY 2025-26

1.3g Conduct public education regarding need for TOT New CMO/LIS 2Q FY 2025-26 2Q FY 2026-27

1.3h Bring TOT measure to City Council for consideration of placing on the November 2026 ballot New CMO/Rec/LIS 4Q FY 2025-26 4Q FY 2025-26 FY 2025-27 City Council Goal's Work Plan

Council Goal’s Work Plans
66 TOC
Goal Strategy Task/Action Carryover Action
or New
Responsible
Department
Anticipated to
Start
Completion
Target

2.1 Pursue 2026 State Water Ballot
Measure

2.1a Meet with Department of Public Works at the County of San Luis Obispo to begin discussion surrounding purchasing some allocated State Water
New CMO/PW 4Q FY 2024-25 1Q FY 2025-26
Achieve Water
Resilience

2.1b If directed by Council, Issue an RFP for a Consultant to evaluate feasibility of State Water Ballot Measure New CMO/PW/LIS 1Q FY 2025-26 1Q FY 2025-26

2.1c Award bid to consultant and begin public outreach and community messaging regarding a potential State Water Ballot Measure New CMO/PW/LIS 2Q FY 2025-26 2Q FY 2026-27

2.1d Seek Council approval on placing a November Ballot Measure New CMO/PW/LIS 4Q FY 2025-26 4Q FY 2025-26

2.2 Seek new Water Sources 2.2a Identify opportunities and constraints associated with new Water Sources New CMO/PW In Progress Ongoing

2.2b Support ongoing development and financing of regional water solution New CMO/PW In Progress Ongoing

2.2c Conduct a water and wastewater rate study to adjust rates based on changes to water supply and changing or new regional partnerships New AS/PW 1Q FY 2025-26 4Q FY 2026-27

2.3 Work with Regional Partners 2.3a Preserve Lopez water supply by working with the County on Lopez litigation New CMO/PW/CA In progress Ongoing

2.3b NCMA Management Agreement Amendments Carryover PW In progress Ongoing Prioritize Key
Infrastructure Projects

3.1 Prioritize Key Infrastructure
Projects 3.1a 2025 Pavement Management Program Construction New PW 3Q FY 2025-26 4Q FY 2025-26

3.1b Traffic Way Bridge Replacement Project Carryover PW In progress 2Q FY 2025-26

3.1c Halcyon Complete Streets Design and Construction Carryover PW

3.1d Concrete Repair Program Carryover PW 2Q FY 2025-26 4Q FY 2025-26

3.1e CMP Lining Carryover CD/PW In Progress Ongoing

3.2 Pursue Alternative Funding
Sources for Infrastructure Funding

3.2a Pursue Grant applications and administration for infrastructure projects
Carryover PW/CD/AS In progress Ongoing

4.1 Economic Development Tasks 4.1a Retail Market Analysis Carryover CD 4Q FY 2024-25 1Q FY 2025-26

4.1b Market Demand Studies Carryover CD 4Q FY 2024-25 1Q FY 2025-26

4.2 General Plan Elements 4.2a Land and Safety Analysis Carryover CD 3Q FY 2023-24 2Q FY 2025-26

4.2b Administrative Draft Carryover CD

4.3 EIR 4.3a Complete draft EIR Carryover CD 1Q FY 2025-26 3Q FY 2025-26

4.3b Complete final EIR Carryover CD 3Q FY 2024-25 4Q FY 2025-26

4.4 Code Update 4.4a Kick off code update Carryover CD/LIS

4.4b Bring code changes to Planning Commission for approval Carryover CD 3Q FY 2025-26 3Q FY 2025-26

4.4c Bring draft Ordinance of code revision update to Council Carryover CD 4Q FY 2025-26 4Q FY 2025-26

4.5 Climate Action Plan 4.5a Kick off CAP and research Carryover CD 1Q FY 2025-26 4Q FY 2025-26

4.5b Admin Draft Carryover CD 4Q FY 2025-26 2Q FY 2026-27

4.5c Final CAP Carryover CD 2Q FY 2026-27 3Q FY 2026-27 FY 2025-27 City Council Goal's Work Plan Continued
Complete General Plan
Update

Council Goal’s Work Plans
67 TOC

5.1 Scope of Work and RFP 5.1a Define scope, research other communities New CD 4Q FY 2024-25 1Q FY 2025-26

5.2 Kick Off and Public Outreach 5.2a Kick Off New CD 1Q FY 2025-26 1Q FY 2025-26

5.2b Public Outreach New CD Ongoing Ongoing

5.3 CEQA 5.3a Environmental Review New CD 2Q FY 2025-26 3Q FY 2025-26

5.4 Plan Draft 5.4a Administrative Draft Plan New CD 3Q FY 2025-26 4Q FY 2025-26

5.5 Final Draft and Hearings 5.5a Final Draft New CD 4Q FY 2025-26 1Q FY 2026-27

5.5b Planning Commission Hearings New CD 1Q FY 2026-27 2Q FY 2026-27

5.5c City Council Hearings New CD 2Q FY 2026-27 2Q FY 2026-27 CMO
AS
LIS
PD
PW
Rec
Fire
CD
City Manager's Office
Administrative Services
Legislative and Information Services
Key
Redevelop the East
Grand Avenue Corridor
(Halcyon Road to Elm
Street)
FY 2025-27 City Council Goal's Work Plan Continued
Community Development
Five Cities Fire Authority
Recreation Services
Public Works
Police Department

68 TOC

BUDGET OVERVIEW

Overview
69 TOC
The City’s Biennial Budget is a two-year, Council-approved spending plan that is the legal authority for departments to commit financial resources to provide services within the City of Arroyo Grande. The Operating Budget for Fiscal Year (FY) 2025-27 is approximately $111.1 million in expenditures, including operating costs such as salaries, benefits, services, supplies, maintenance, debt service, and capital related items, over the next two fiscal years. The FY 2025-26 Budget is approximately $55.7 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 as shown in Table 1.

Table 1: FY 2025-26 Consolidated Fund Summary
The FY 2026-27 Budget is approximately $55.4 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 as shown in Table 2.

Table 2: FY 2026-27 Consolidated Fund Summary

70 TOC

INTERFUND

TRANSFERS

Interfund Transfers
71 TOC
Interfund Transfers represent a transfer of resources from one fund to another fund. The transfer appears as a resource in the fund receiving the transfer and as a budget requirement in the fund that is sending the transfer. The nature of interfund transfers causes revenue and expenditures to be double counted in the citywide budget; however, the inclusion of interfund transfers provides transparency to the performance of individual funds and the subsidies from one City fund to another.

The following schedules of Interfund Transfers show the relationship of operating transfers between funds.

Interfund Transfers
FY 2025-26 Personnel Operating Cost Allocation CIP Other General Fund (100)
4901 Personnel Transfers 965,100
4903 Cost Allocation 1,675,000
4909 Transfers In - TBID Fund 42,500 3,000
4950 Transfers In - Sales Tax Fund
4952 Transfers In - RDA Successor Fund 30,000
5902 Operating Transfers - Streets Fund (75,000)
5906 Transfers out - USDA City Hall loan (40,000)
Sewer Fund (612)
5901 Personnel Transfers (231,400)
5903 Cost Allocation Transfers (330,700)
5906 Transfers out - USDA City Hall loan (5,000)

Interfund Transfers
72 TOC
Interfund Transfers
FY 2025-26 CONTINUED Personnel Operating Cost Allocation CIP Other Water Fund (640)
4943 Transfer In - Water Availability Fund
5901 Personnel Transfers (623,000)
5903 Cost Allocation Transfers (1,333,100)
5906 Transfers Out - USDA City Hall Loan (8,800)
5913 Transfers Out - Lopez Fund (3,962,121)
Lopez Fund (641)
4940 Transfers In - Water Fund 3,962,121
Grace Lane Assessment District (216)
5903 Cost Allocation Transfers (1,600)
Landscape Maintenance District (217)
5903 Cost Allocation Transfers (1,400)
Local Sales Tax Fund (120)
5906 Transfers Out - USDA City Hall Loan (20,000)
Parkside Assessment District (219)
5903 Cost Allocation Transfers (2,300)
Streets (Gas Tax) (220)
4902 Operating Transfer In Transportation 620,000
4903 Operating Transfer In - General Fund 75,000
5901 Personnel Transfers (105,700)
5904 Transfers out - CIP Fund (481,000)
Transportation Facility Fund (224)
5904 Transfers out - CIP Fund
Transportation (225)
5902 Operating Transfers (620,000)
TBID Fund (240)
5901 Personnel Transfers (47,500)
5910 Transfer out - General Fund (3,000)
CIP Fund (350)
4920 Streets Fund 481,000
Downtown Parking Fund (751)
5903 Cost Allocation Transfers (5,900)

Interfund Transfers
73 TOC
Interfund Transfers
FY 2025-26 CONTINUED Personnel Operating Cost Allocation CIP Other USDA City Hall Loan Fund (472)
4910 Transfer In - General Fund 40,000
4930 Sewer Fund 5,000
4940 Water Fund 8,800
4950 Sales Tax 20,000
RDA Successor Fund (286)
5910 Transfers Out - General Fund (30,000)
Total - - - - -
Interfund Transfers
FY 2026-27 Personnel Operating Cost Allocation CIP Other General Fund (100)
4901 Personnel Transfers 1,004,000
4903 Cost Allocation 1,675,000
4909 Transfers In - TBID Fund 42,500 3,000
4952 Transfers In - RDA Successor Fund 30,000
5902 Operating Transfers - Streets Fund (75,000)
5906 Transfers out - USDA City Hall loan (40,000)
Sewer Fund (612)
5901 Personnel Transfers (240,500)
5903 Cost Allocation Transfers (330,700)
5906 Transfers out - USDA City Hall loan (5,000)
Water Fund (640)
5901 Personnel Transfers (647,600)
5903 Cost Allocation Transfers (1,333,100)
5906 Transfers Out - USDA City Hall Loan (8,800)
5913 Transfers Out - Lopez Fund (4,410,800)
Lopez Fund (641)
4940 Transfers In - Water Fund 4,410,800
Grace Lane Assessment District (216)
5903 Cost Allocation Transfers (1,600)
Landscape Maintenance District (217)
5903 Cost Allocation Transfers (1,400)
Local Sales Tax Fund (120)
5906 Transfers Out - USDA City Hall Loan (20,000)
Parkside Assessment District (219)
5903 Cost Allocation Transfers (2,300)

Interfund Transfers
74 TOC
Interfund Transfers
FY 2026-27 CONTINUED Personnel Operating Cost Allocation CIP Other Streets (Gas Tax) (220)
4902 Operating Transfer In Transportation 655,000
4903 Operating Transfer In - General Fund 75,000
5901 Personnel Transfers (109,800)
5903 Transfer out - CIP Fund (495,400)
Transportation (225)
5902 Operating Transfers (655,000)
TBID Fund (240)
4910 Transfer In - General Fund
5901 Personnel Transfers (48,600)
5910 Transfer out - General Fund (3,000)
CIP Fund (350)
4920 Streets Fund 495,400
Downtown Parking Fund (751)
5903 Cost Allocation Transfers (5,900)
USDA City Hall Loan Fund (472)
4910 Transfer In - General Fund 40,000
4930 Sewer Fund 5,000
4940 Water Fund 8,800
4950 Sales Tax 20,000
RDA Successor Fund (286)
5910 Transfers Out - General Fund (30,000)
Total - - - - -

75 TOC

FUND SUMMARIES

76 TOC
CONSOLIDATED SUMMARY – ALL FUNDS
2025-26 Budget
2026-27 Budget
Beginning Fund Balance $ 7,460,674 $ 3,753,651 $ 1,440,000 $ 6,699,779 $ 13,107,016 $ 5,112,605 $ 37,573,724 Revenues:

Revenues 20,304,750 2,942,500 5,870,000 10,562,195 2,512,248 423,944 42,615,637 Transfers In 2,940,200 - - 5,684,397 695,000 - 9,319,597 Total Revenues 23,244,950 2,942,500 5,870,000 16,246,592 3,207,248 423,944 51,935,234 Expenditures:

Salaries and Benefits 14,294,300 - - 1,363,900 623,100 - 16,281,300 Services and Supplies 10,285,805 1,264,800 32,500 6,535,768 835,391 7,900 18,962,163 Debt Service 294,386 - - - 8,369 382,944 685,699
Capital Outlay 13,000 - - 929,000 165,000 - 1,107,000
Transfers Out 115,000 3,301,880 5,952,640 8,017,547 1,262,000 35,900 18,684,967 Total Expenditures 25,002,491 4,566,680 5,985,140 16,846,214 2,893,860 426,744 55,721,129 Total Operating Incr/(Dec (1,757,541) (1,624,180) (115,140) (599,623) 313,387 (2,800) (3,785,895) Available Fund Balance $ 5,703,133 $ 2,129,471 $ 1,324,860 $ 6,100,156 $ 13,420,403 $ 5,109,805 $ 33,787,829 Total
Enterprise
Funds
Agency
Funds
General
Fund Measure O-06
Special
Measure E-24 Revenue
Beginning Fund Balance $ 5,703,133 $ 2,129,471 $ 1,324,860 $ 6,100,156 $ 13,420,403 $ 5,109,805 $ 33,787,828 Revenues:

Revenues 21,180,350 3,019,500 6,025,000 10,873,332 2,530,161 423,944 44,052,287 Transfers In 2,986,900 - - 4,081,705 730,000 - 7,798,605 Total Revenues 24,167,250 3,019,500 6,025,000 14,955,037 3,260,161 423,944 51,850,893 Expenditures:

Salaries and Benefits 14,881,600 - - 1,418,700 647,300 - 16,947,600 Services and Supplies 10,607,250 1,150,600 32,500 5,094,450 971,941 7,900 17,864,641 Debt Service 282,786 - - - 8,369 382,944 674,099
Capital Outlay 51,529 - - 1,598,000 165,000 - 1,814,529 Transfers Out 115,000 2,286,435 5,846,200 8,364,000 1,315,500 179,900 18,107,035 Total Expenditures 25,938,165 3,437,035 5,878,700 16,475,150 3,108,111 570,744 55,407,905 Total Operating Incr/(Dec (1,770,915) (417,535) 146,300 (1,520,113) 152,050 (146,800) (3,557,012) Available Fund Balance $ 3,932,218 $ 1,711,936 $ 1,471,160 $ 4,580,044 $ 13,572,453 $ 4,963,005 $ 30,230,816 Enterprise
Funds
Agency
Funds Total
Special
Revenue
General
Fund Measure O-06 Measure E-24

77 TOC

GENERAL FUND

78 TOC

GENERAL FUNDS
FUND: 100 GENERAL FUND
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance $ 11,862,259 $ 11,494,147 $ 11,494,147 $ 11,494,147 $ 7,460,674 $ 5,703,133 Revenues:

Revenues 19,922,366 19,226,070 19,135,570 19,540,458 20,304,750 21,180,350 Transfers In 2,755,008 2,796,300 2,796,300 3,081,800 2,940,200 2,986,900 Total Revenues 22,677,374 22,022,370 21,931,870 22,622,258 23,244,950 24,167,250 Expenditures:

Salaries and Benefits 12,790,046 13,538,725 13,611,716 13,808,090 14,294,300 14,881,600 Services and Supplies 8,993,251 9,771,973 9,947,300 9,686,903 10,285,805 10,607,250 Debt Service 310,018 294,386 294,386 302,422 294,386 282,786 Capital Outlay 135,043 129,500 269,500 383,316 13,000 51,529 Transfers Out 817,128 2,475,000 2,475,000 2,475,000 115,000 115,000 Total Expenditures 23,045,486 26,209,584 26,597,902 26,655,731 25,002,491 25,938,165 Total Operating Increases (Decreases (368,112) (4,187,214) (4,666,032) (4,033,473) (1,757,541) (1,770,915) Available Fund Balance $ 11,494,147 $ 7,306,933 $ 6,828,115 $ 7,460,674 $ 5,703,133 $ 3,932,218 Percent of Expenditures 49.9% 27.9% 25.7% 28.0% 22.8% 15.2% 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. 2024-25

79 TOC

LOCAL SALES TAX FUNDS
2025-26 2026-27
2023-24 ADOPTED AMENDED ESTIMATED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance $ 7,625,336 $ 1,759,416 $ 4,755,997 $ 4,755,997 $ 3,753,651 $ 2,129,471 Revenues:

Revenues 3,283,349 2,962,000 2,962,000 2,891,000 $ 2,942,500 3,019,500 Transfers In - - - - - -
Total Revenues 3,283,349 2,962,000 2,962,000 2,891,000 2,942,500 3,019,500 Expenditures:

Salaries and Benefits - - - - - -
Services and Supplies 1,006,561 1,041,500 1,041,500 1,087,000 1,119,800 1,150,600 Capital Outlay - - - - - -
Transfers Out 5,146,127 2,109,272 7,943,991 2,806,346 3,446,880 2,286,435 Total Expenditures 6,152,688 3,150,772 8,985,491 3,893,346 4,566,680 3,437,035 Change in Fund Balance (2,869,340) (188,772) (6,023,491) (1,002,346) (1,624,180) (417,535) Ending Fund Balance $ 4,755,997 $ 1,570,644 $ (1,267,494) $ 3,753,651 $ 2,129,471 $ 1,711,936 2024-25
FUND: 120 MEASURE O-06 LOCAL SALES TAX
This fund accounts for the revenues derived from Measure O 2006 Sales Tax, a local 1/2% sales tax approved by the City's voters in November 2006.
2025-26 2026-27
2023-24 ADOPTED AMENDED ESTIMATED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance $ - $ - $ - $ - $ 1,440,000 $ 1,324,860 Revenues:

Revenues - - - 1,440,000 5,870,000 6,025,000
Transfers In - - - - - -
Total Revenues - - - 1,440,000 5,870,000 6,025,000
Expenditures:

Salaries and Benefits - - - - - -
Services and Supplies - - - - 32,500 32,500
Capital Outlay - - - - - -
Transfers Out - - - - 5,952,640 5,846,200
Total Expenditures - - - - 5,985,140 5,878,700
Change in Fund Balance - - - 1,440,000 (115,140) 146,300 Ending Fund Balance $ - $ - $ - $ 1,440,000 $ 1,324,860 $ 1,471,160 FUND: 140 MEASURE E-24 LOCAL SALES TAX
This fund accounts for the revenues derived from Measure E 2024 Sales Tax, a local 1% sales tax approved by the City's voters in November 2024.
2024-25

80 TOC

CONSOLIDATED GENERAL 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). There are two Local Sales Tax Funds. Measure O-06 accounts for the revenues derived from the local 1/2% sales tax approved by the City's voters in November 2006. Measure E-24 accounts for the revenues derived from the local 1% sales tax approved by the City's voters in November 2024. To ensure accountability, these measures include provisions 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.

General General
Fund Fund
Beginning Fund Balance $7,462 $3,754 $1,440 $12,655 $5,705 $2,130 $1,324 $9,158 Revenues:

Revenues 20,305 2,943 5,870 29,118 21,180 3,020 6,025 30,225 Transfers In 2,940 - - 2,940 2,987 - - 2,987
Total Revenues 23,245 2,943 5,870 32,058 24,167 3,020 6,025 33,212 Expenditures:

Salaries and Benefits 14,294 - - 14,294 14,882 - - 14,882 Services and Supplies 10,286 1,265 33 11,584 10,607 1,151 33 11,791 Debt Service 294 - - 294 283 - - 283
Capital Outlay 13 - - 13 52 - - 52
Transfers Out 115 3,302 5,953 9,370 115 2,286 5,846 8,247 Total Expenditures 25,002 4,567 5,986 35,555 25,939 3,437 5,879 35,255 Total Operating Incr/(Decr) (1,757) (1,624) (116) (3,497) (1,772) (417) 146 (2,043) Available Fund Balance $5,705 $2,130 $1,324 $9,158 $3,933 $1,713 $1,470 $7,115 Reserve % 22.8% 46.6% 22.1% 25.8% 15.2% 49.8% 25.0% 20.2% $ Above Reserve Policy 703 1,216 128 2,047 (1,255) 1,025 295 65 FY 2025-26 FY 2026-27
Measure
O-06
Consolidated
Total
Measure
O-06
Consolidated
Total
Measure
E-24
Measure
E-24

81 TOC

CONSOLIDATED GENERAL FUND

REVENUES BY SOURCE

82 TOC

CONSOLIDATED GENERAL FUND

REVENUES TRENDS
Property Tax
Property Tax revenues are estimated to increase by 4.25% in FY 2025-26 and increase by 4.25% in FY 2026-27.

Sales and Use Tax
Sales Tax revenues are estimated to increase by 0.9% in FY 2025-26 and increase by 2.6% in FY 2026-27.

Transient Occupancy Tax
Transient Occupancy Tax revenues are estimated to increase by 3% in FY 2025-26 and increase by 3% in FY 2026-

27.

83 TOC

CONSOLIDATED GENERAL FUND

REVENUES DETAIL
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET TAXES
4003 Current Secured $ 6,501,513 6,261,459 6,261,459 6,675,400 6,959,200 7,463,500 4004 Current Unsecured 230,005 210,000 210,000 210,000 218,900 228,100 4005 Prior Secured (19,455) (18,000) (18,000) (18,000) (18,800) (19,600) 4006 Prior Unsecured 4,077 4,600 4,600 4,600 4,800 5,000 4007 Redemptions 1,605 300 300 300 300 300
4008 Property Tax in Lieu of VLF 2,129,113 2,215,938 2,215,938 2,227,954 2,322,600 2,421,300 4010 Transient Occupancy Tax 1,407,882 1,591,350 1,591,350 1,450,000 1,493,500 1,538,300 4011 Sales & Use Tax 4,968,179 5,043,533 4,953,033 4,947,991 5,008,400 5,139,900 4012 Sales Tax-Safety 190,166 192,859 192,859 190,413 198,400 204,300 4013 Property Transfer Tax 105,175 - - - 168,100 174,000 4018 Measure O-06 Sales & Use Tax 3,283,349 2,962,000 2,962,000 2,891,000 2,942,500 3,019,500 4019 Measure E-24 Sales & Use Tax - - - 1,440,000 5,870,000 6,025,000 4030 Franchise Taxes 960,744 811,500 811,500 903,000 921,100 939,500 4050 Business License Tax 104,746 100,000 100,000 100,000 100,000 100,000 Total 19,867,099 19,375,539 19,285,039 21,022,658 26,189,000 27,239,100

LICENSES & PERMITS
4124 Fire Permits 5,793 12,500 12,500 12,500 12,800 13,100 4125 Police Permits 34,218 39,300 39,300 39,300 40,100 40,900 4126 Other Permits-Alcohol 51 - - - - -
4127 Other Permits-Tobacco Retailers 2,031 2,100 2,100 2,100 2,100 2,100 4128 Other Permits-Solicitation - 200 200 200 200 200
4141 Other Permits-Encroachment 95,052 78,800 78,800 78,800 80,400 82,000 4161 Sign Permits 4,654 7,100 7,100 7,100 7,200 7,300
4162 Use Permits 51,064 32,600 32,600 32,600 33,300 34,000 4164 Use Permits-Temporary 1,812 1,600 1,600 1,600 1,600 1,600 4181 Building Permits 247,287 303,000 303,000 276,900 282,400 288,100 4182 Plumbing Permits 10,615 5,200 5,200 5,200 5,300 5,400 4183 Electrical Permits 71,948 80,100 80,100 80,100 81,700 83,300 4185 Excav/Grade Permits 10,726 16,200 16,200 16,200 16,500 16,800 4187 Mechanical Permits 7,974 9,300 9,300 9,300 9,500 9,700 4189 Other Permits-Demolition 6,437 2,800 2,800 2,800 2,900 3,000 Total 549,661 590,800 590,800 564,700 576,000 587,500
2024-25

84 TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET FINES
4201 Vehicle Code Fines 67,057 50,000 50,000 40,000 51,000 52,000 4202 Local Ordinance 846 400 400 500 400 400
4203 Parking 4,943 5,500 5,500 4,500 5,600 5,700
Total 72,845 55,900 55,900 45,000 57,000 58,100

USE OF MONEY AND PROPERTY
4301 Interest 323,577 125,000 125,000 125,000 127,500 130,100 4350 Rent 62,164 25,740 25,740 68,100 26,300 26,800
4351 Telecommunication Site Leases 410,987 408,000 408,000 408,000 416,200 424,500 4353 Rent-Commercial Buildings 15,495 15,300 15,300 15,300 15,600 15,900 4354 Park User Fees 108,489 107,100 107,100 107,100 109,200 111,400 4356 Le Point Charging Station 1,931 1,200 1,200 1,200 1,200 1,200 4375 Returned Check Fees 75 - - - - -
Total 922,718 682,340 682,340 724,700 696,000 709,900

AID FROM OTHER GOVERNMENTS
4411 Motor Vehicle License Fees 22,648 20,000 20,000 20,000 20,400 20,800 4413 Homeowners P.T.R. 32,183 33,700 33,700 33,700 34,400 35,100 4426 P.O.S.T. Reimbursement 7,133 10,800 10,800 10,800 11,000 11,200 4427 Mandated Cost Recovery 35,671 10,700 10,700 10,700 10,900 11,100 4451 Lucia Mar Reimbursement 80,200 81,900 81,900 81,900 83,500 85,200 4458 State Grant 15,397 51,275 51,275 51,275 52,300 53,300 4460 Department of Justice Grant 10,559 - - - - -
4462 Local Grant 73,921 - - - - -
4479 Office of Traffic Safety Grant - Police 83,929 - - - - - 4499 Rev from other Govmt Agencies 196,591 363,416 363,416 308,425 370,700 378,100 Total 558,232 571,791 571,791 516,800 583,200 594,800

COMMUNITY DEVELOPMENT CHARGES FOR SERVICES
4501 Developer Application Fees 23,191 21,400 21,400 15,000 21,800 22,200 4502 Filing/Certificate Fees 14,280 2,100 2,100 2,100 2,100 2,100 4504 File Fees-Appeals 1,668 1,000 1,000 1,000 1,000 1,000 4505 Plan Check Fees 367,464 306,000 306,000 350,000 352,050 358,250 4506 Lot Split/Subdivision 27,257 15,000 15,000 15,000 15,300 15,600 4507 Architect Review Fees 9,628 10,000 10,000 12,000 10,200 10,400 4509 Home Occupancy Permits 9,850 8,500 8,500 8,500 8,700 8,900 4510 Miscellaneous Plan Fees 14,509 33,600 33,600 15,000 34,300 35,000 4511 Pre-application Reviews 3,933 2,800 2,800 2,800 2,900 3,000 4512 Sign Reviews 4,399 600 600 600 600 600
4521 General Plan Update Fee 5,622 - - - 5,700 5,800
4522 Technology Fee 3,760 - - - 3,800 3,900
Total 485,561 402,100 402,100 423,100 459,550 467,850
2024-25

85 TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET

RECREATION CHARGES FOR SERVICES
4602 Children in Motion 127,068 - - - - -
4603 Play/Learn Sessions 1,818 - - - - -
4604 Play/Learn-Summer 1,333 - - - - -
4605 Special Interest Classes 337,384 290,700 290,700 290,700 286,000 291,700 4606 Sports Leagues 28,993 23,300 23,300 23,300 20,000 20,400 4607 Special Events 64,382 45,000 45,000 60,000 45,900 46,800 4608 Softball Leagues 7,460 7,500 7,500 12,100 7,700 7,900 4609 Recreation - Other Revenue 14,614 5,100 5,100 5,100 5,200 5,300 4655 Building Supervision 8,604 - - 6,200 - -
Total 591,654 371,600 371,600 397,400 364,800 372,100

PUBLIC WORKS CHARGES FOR SERVICES
4701 Miscellaneous Engineering Fees - 700 700 700 700 700 4702 Engineering Map/Plan Check 9,151 15,500 15,500 15,500 15,800 16,100 4703 Engineering Inspection Fees 1 - - - - -
4706 Stormwater Permit Fees 2,472 - - - - -
Total 11,624 16,200 16,200 16,200 16,500 16,800

OTHER CHARGES FOR SERVICES
4731 Live Scan Fingerprinting 2,240 1,300 1,300 1,300 1,300 1,300 4753 Sanitation District Billing Services 16,577 21,800 21,800 21,800 22,200 22,600 4762 Sewer Facility Charge 2,565 4,900 4,900 4,900 5,000 5,100 4771 County TMD Assessment Admin Fee 4,273 3,200 3,200 3,200 3,300 3,400 4772 FCFA Admin/Support Services 60,490 49,000 49,000 49,000 55,000 56,100 Total 86,145 80,200 80,200 80,200 86,800 88,500

OTHER REVENUE
4801 Other Revenue 24,754 15,600 15,600 15,600 15,900 16,200 4803 Sales-Equipment/Materials 29,347 - - 29,800 31,000 31,700 4804 Sales-Publications/Reports 100 500 500 500 500 500 4807 Expense Recovery 6,506 8,200 8,200 12,300 8,400 8,600 4808 Expense Recovery-Police 8,649 7,100 7,100 12,300 7,200 7,300 4809 Donations 15,696 - - - 15,000 15,300
4817 Santa Cop Sponsorship 16,226 10,200 10,200 10,200 10,400 10,600 4818 Cash over(short) (41,105) - - - - -
Total 60,174 41,600 41,600 80,700 88,400 90,200
2024-25

86 TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET

TRANSFERS IN
4901 Personnel Transfers 796,704 823,900 823,900 823,900 966,100 1,004,000 4903 Cost Allocation 1,675,008 1,675,000 1,675,000 1,958,000 1,675,000 1,675,000 4909 Transfers In - TBID Fund 45,000 42,500 42,500 45,000 45,000 45,000 4950 Transfers In - Sales Tax Fund 208,296 224,900 224,900 224,900 224,100 232,900 4952 Transfers In - RDA Successor Fund 30,000 30,000 30,000 30,000 30,000 30,000 Total 2,755,008 2,796,300 2,796,300 3,081,800 2,940,200 2,986,900 Grand Total $ 25,960,723 $ 24,984,370 $ 24,893,870 $ 26,953,258 $ 32,057,450 $ 33,211,750 2024-25

87 TOC

CONSOLIDATED GENERAL FUND

EXPENDITURES BY DEPARTMENT
2025-26 Consolidated General Fund Expenditures by Department

88 TOC

GENERAL FUND EXPENDITURES SUMMARY

BY DEPARTMENT
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

DEPARTMENT ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
City Administration
4001 City Council $ 149,755 $ 158,500 $ 158,500 $ 147,250 $ 136,400 $ 135,500 4099 Retirees 235,000 235,000 235,000 235,000 235,000 235,000 4101 City Manager 644,948 675,800 675,800 665,800 670,200 733,600 4110 Human Resources 191,760 261,600 261,600 281,600 370,420 328,420 4003 City Attorney 510,188 528,750 528,750 528,750 528,750 544,600 Total City Administration 1,731,651 1,859,650 1,859,650 1,858,400 1,940,770 1,977,120 Legislative and Information Services
4002 City Clerk 396,607 547,160 547,160 547,160 453,575 511,880 4102 Printing/Duplicating 25,405 29,900 29,900 22,900 27,900 27,900 Total Legislative & Information Services 422,012 577,060 577,060 570,060 481,475 539,780 Administrative Services
4120 Administrative Services 840,498 897,280 897,280 968,330 945,680 973,580 4140 Information Technology 844,183 1,084,600 1,244,650 1,047,100 1,103,300 1,132,800 4145 Non-Departmental 3,942,228 5,267,416 5,267,416 5,505,140 3,316,400 3,578,700 4145 FCFA (Fire Service) 2,941,910 2,983,500 2,983,500 2,983,500 3,082,000 3,174,400 CalPERS UAL payment - - - - - -
Total Administrative Services 8,568,819 10,232,796 10,392,846 10,504,070 8,447,380 8,859,480 Community Development
4130 Planning 1,049,165 1,399,382 1,399,382 1,161,200 1,469,200 1,532,400 4212 Building & Life Safety 631,620 680,240 680,240 680,240 680,940 685,240 Total Community Development 1,680,784 2,079,622 2,079,622 1,841,440 2,150,140 2,217,640 Police Department
4201 Police 1,539,432 1,593,737 1,593,737 1,592,388 1,690,986 1,764,815 4203 Patrol Services 3,796,634 4,169,500 4,169,500 4,154,700 4,490,700 4,625,900 4204 Police Support Services 1,309,385 1,592,835 1,592,835 1,584,035 1,453,710 1,446,700 4206 CHP Grant - Cannabis - - 155,600 155,600 - -
4207 ABC Grant 13,453 51,275 51,275 51,275 - -
4209 OTS - Special Grant Programs 43,462 - 72,668 72,668 - - Total Police Department 6,702,366 7,407,347 7,635,615 7,610,666 7,635,396 7,837,415 2024-25

89 TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

DEPARTMENT ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
4421 Recreation Administration 479,359 509,900 509,900 570,150 654,550 675,650 4423 Pre-School Program 42,386 - - - - -
4424 Recreation-Special Programs 301,325 258,850 258,850 301,350 326,000 341,150 4425 Children In Motion 93,412 - - - - -
Total Recreation Services 916,482 768,750 768,750 871,500 980,550 1,016,800 Public Works
4307 Public Works Administration 1,016,125 1,187,570 1,187,570 1,180,850 1,257,250 1,292,950 4301 Engineering 591,687 757,700 757,700 729,700 670,600 721,700 4420 Park Maintenance 660,428 630,489 630,489 762,216 685,430 703,180 4430 Soto Sports Complex Maintenance 232,830 255,050 255,050 255,050 267,500 274,900 4305 Automotive Shop 210,420 190,100 190,100 207,279 202,400 208,500 4213 Government Buildings 311,882 263,450 263,450 264,500 283,600 288,700 Total Public Works 3,023,372 3,284,359 3,284,359 3,399,595 3,366,780 3,489,930 Grand Total $ 23,045,486 $ 26,209,584 $ 26,597,902 $ 26,655,731 $ 25,002,491 $ 25,938,165 2024-25

90 TOC

GENERAL FUND EXPENDITURE BY OBJECT
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET

SALARIES/FRINGE BENEFITS
5101 Salaries-Full Time $ 5,842,707 $ 7,917,700 $ 7,917,700 $ 7,917,700 $ 8,241,500 $ 8,529,400 5102 Salaries-Part Time 172,520 125,200 125,200 125,200 179,200 184,200 5103 Salaries-Temporary Part Time 118,019 229,900 229,900 229,900 208,700 216,100 5105 Salaries-Overtime 458,263 269,825 342,816 342,816 235,200 235,200 5107 Standby/Call Back Pay 17,720 11,500 11,500 11,500 20,000 20,000 5108 Holiday Pay 361,040 147,600 147,600 147,600 150,900 156,100 5109 Sick Leave Pay 119,180 - - - - -
5110 Annual Leave Buy Back 30,430 25,500 25,500 25,500 26,900 26,900 5111 Vacation Buy Back 29,506 24,000 24,000 24,000 28,000 28,000 5112 Sick Leave Buy Back 11,088 11,100 11,100 11,100 11,500 11,500 5113 Vacation Leave Pay 197,270 1,000 1,000 1,000 - -
5114 Compensation Pay 79,362 - - - - -
5115 Annual Leave 222,561 - - - - -
5116 Field Training Premium 1,877 5,000 5,000 5,000 5,200 5,200 5121 PERS Retirement 914,238 1,016,200 1,016,200 1,016,200 1,023,000 1,059,000 5122 Social Security 571,990 579,500 579,500 579,500 599,000 611,700 5123 PARS-Retirement 3,994 5,700 5,700 5,700 6,400 6,500 5126 State Disability (SDI) 66,571 21,100 21,100 21,100 102,900 106,600 5127 Deferred Compensation 21,053 18,700 18,700 18,700 45,800 45,800 5128 UAL (Unfunded Accrued Liability) 1,241,857 1,630,500 1,630,500 1,760,832 1,974,300 2,113,200 5131 Health Insurance 1,075,984 1,205,000 1,205,000 1,198,750 1,260,600 1,311,100 5132 Dental Insurance 63,571 67,300 67,300 67,300 70,400 74,000 5133 Vision Insurance 16,817 18,500 18,500 18,500 18,300 19,100 5134 Life Insurance 7,959 9,200 9,200 9,200 9,500 9,500 5135 Long Term Disability Insurance 12,414 22,700 22,700 22,700 22,900 23,100 5136 Retirees Health Insurance 141,224 235,000 235,000 235,000 235,000 235,000 5137 Leave Payouts 166,161 - - - - -
5141 Workers Compensation 717,373 581,200 581,200 653,492 498,400 564,600 5142 Unemployment Insurance 34,541 - - - - -
5143 Uniform Allowance 14,763 13,400 13,400 13,400 14,000 14,000 5144 Car Allowance 18,803 21,300 21,300 21,300 23,700 23,700 5147 Employee Assistance Program 2,177 2,000 2,000 2,000 2,000 2,000 5148 Boot Allowance 2,499 2,200 2,200 2,200 2,200 2,200 5149 Motor Pay 5,236 2,000 2,000 2,000 2,000 2,000
5150 Bilingual Pay 3,814 4,200 4,200 4,200 3,600 3,600
5151 Cell Phone Allowance 25,465 25,600 25,600 25,600 25,500 25,500 5199 Salary Reimbursement - (710,900) (710,900) (710,900) (752,300) (783,200) Total $ 12,790,046 $ 13,538,725 $ 13,611,716 $ 13,808,090 $ 14,294,300 $ 14,881,600 2024-25

91 TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET

SERVICES & SUPPLIES
5201 Supplies - Office $ 53,663 $ 37,000 $ 37,000 $ 34,600 $ 39,400 $ 38,300 5208 Postage/Mailing 18,552 20,200 20,200 23,200 20,200 20,200 5250 Supplies-Volunteer Program 2,047 1,850 1,850 1,850 2,200 2,400 5251 Supplies-Classes 18,219 9,000 9,000 9,500 18,000 18,500 5252 Supplies-Recreation Events 38,385 15,000 15,000 18,000 31,500 33,000 5253 Play/Learn Sessions 1,992 - - - - -
5254 Play/Learn-Summer 230 - - - - -
5255 Special Department Supplies 60,069 72,300 81,409 90,909 74,500 74,500 5257 Supplies-Leagues 17,594 27,600 27,600 18,000 28,300 28,350 5259 Children In Motion Supplies-Snacks 860 - - - - -
5261 Santa Cop 16,226 10,000 10,000 10,000 10,000 10,000 5272 Protective/Safety Clothing 46,991 43,500 43,500 35,500 50,100 43,500 5273 Small Tools 9,123 6,200 6,200 6,300 9,300 9,300
5274 Chemicals 3,920 3,700 3,700 3,700 4,200 4,150
5301 Advertising 7,604 12,100 12,100 12,100 11,100 10,100 5303 Contractual Services 2,574,048 3,213,208 3,391,958 2,911,706 3,165,520 3,218,325 5304 Professional Services 397,656 500,000 500,000 500,000 500,000 515,000 5306 Printing Services 179 600 600 600 600 600
5307 Disposal Fees - 2,200 2,200 1,000 2,200 2,200
5308 Street Trees 580 2,100 2,100 1,000 2,100 2,100
5313 Five Cities Fire Authority 2,941,910 2,983,500 2,983,500 2,983,500 3,082,000 3,174,400 5315 Pre-Employment Physicals 28,477 22,780 22,780 22,500 22,780 22,780 5316 Job Recruitment Expense 4,385 5,889 5,889 5,900 6,800 6,800 5319 Services-Miscellaneous 1,757 6,800 6,800 6,800 7,000 7,100 5321 Animal Control Services 118,212 105,425 105,425 156,319 184,400 189,900 5324 Forensic Mandate Services 14,058 15,500 15,500 12,000 15,500 15,500 5327 Services-Litigation Non-Insurance 110,337 25,750 25,750 25,750 25,750 26,500 5328 Task Force Services 24,600 30,000 30,000 30,000 30,000 30,000 5329 Live Scan Fingerprinting Expense 2,279 8,000 8,000 3,000 5,000 5,000 5330 Cable Casting Expense 30,885 35,000 35,000 35,000 - - 5351 Services-Classes 189,632 150,000 150,000 190,000 175,000 180,000 5352 Services-Leagues 8,796 12,600 12,600 9,000 13,700 13,900 5353 Services-Events 26,652 42,800 42,800 55,000 57,300 65,000 5354 Building Supervision 71 250 250 1,000 1,700 1,800
5395 Community Services Grants 75,000 75,000 75,000 75,000 75,000 75,000 5401 Utilities 269,026 255,800 255,800 277,100 330,000 339,900 5402 Power 245,917 235,000 235,000 266,000 274,000 282,200 5403 Telephone 70,726 35,000 35,000 52,500 48,800 50,200 5501 Travel/Conference/Training 100,973 163,220 169,388 123,168 166,115 161,515 5502 Tuition Reimbursement 8,546 5,300 5,300 5,300 5,300 5,300 5503 Memberships & Subscriptions 43,363 50,260 50,260 47,860 56,290 58,590 5504 Public Relations 66,699 38,000 38,000 93,000 75,000 75,000 5506 Elections 1,196 55,000 55,000 55,000 2,000 60,000
5508 Miscellaneous Expense 5,490 11,500 11,500 11,500 11,500 11,500 5551 Property Taxes 72 75 75 75 100 100
5552 Rent-Equipment 1,904 3,700 3,700 3,700 3,700 3,700 5553 Rent-Buildings & Land 12,890 33,000 33,000 28,500 51,000 52,400 5555 Bank Charges 65,450 60,000 60,000 60,000 65,000 67,000 5576 Liability Insurance-JPA Share 707,270 752,518 752,518 752,518 847,800 928,600 2024-25

92 TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET SERVICES & SUPPLIES (Continued)
5578 Liability Insurance-Underground Tan 1,291 1,300 1,300 1,300 1,300 1,300 5579 Property Insurance 87,455 100,323 100,323 100,323 96,700 99,600 5580 Surety Bonds 1,545 1,600 1,600 4,400 1,800 2,000
5601 Maintenance-Vehicles 74,289 73,200 73,200 72,000 92,810 77,900 5602 Maintenance-Office Equipment 20,422 19,800 19,800 21,300 20,800 21,000 5603 Maintenance-Machinery & Equipmen 14,369 17,400 17,400 12,900 15,700 15,700 5604 Maintenance-Buildings 33,224 39,100 39,100 45,000 54,400 54,400 5605 Maintenance-Grounds 59,747 57,950 57,950 55,850 76,100 76,100 5606 Maintenance-Radio Communications 15,028 22,750 22,750 22,750 22,750 22,750 5607 Maintenance-Automated Services 112,819 94,985 88,385 151,185 146,750 146,750 5608 Gas & Oil 92,971 92,200 92,200 89,200 92,200 92,700 5615 Janitorial Services 21,420 16,400 16,400 21,000 25,000 25,000 5701 Office Equipment and Furniture 2,250 5,000 5,000 5,000 5,000 5,100 5702 Data Processing Equipment 11,913 35,740 23,640 19,740 26,740 26,740 Total $ 8,993,251 $ 9,771,973 $ 9,947,300 $ 9,686,903 $ 10,285,805 $ 10,607,250

DEBT SERVICE
5801 Debt - Principal Payment $ 288,087 $ 265,747 $ 265,747 $ 272,286 $ 255,272 $ 254,736 5802 Debt - Interest Payment 13,478 20,639 20,639 29,279 31,114 20,050 5803 Lease Purchase Payments 8,454 8,000 8,000 857 8,000 8,000 Total $ 310,018 $ 294,386 $ 294,386 $ 302,422 $ 294,386 $ 282,786

TRANSFERS
5904 Transfers out - CIP Fund $ 610,872 $ 2,360,000 $ 2,360,000 $ 2,360,000 $ - $ - 5902 Transfer out - Streets Fund 75,000 75,000 75,000 75,000 75,000 75,000 5906 Transfers out - USDA City Hall loan 39,996 40,000 40,000 40,000 40,000 40,000 5907 Transfers out - OPEB Fund 91,260 - - - - -
Total $ 817,128 $ 2,475,000 $ 2,475,000 $ 2,475,000 $ 115,000 $ 115,000

CAPITAL OUTLAY
6201 Machinery & Equipment $ 49,378 $ 29,500 $ 89,500 $ 70,000 $ 13,000 $ 13,000 6301 Vehicles 85,664 100,000 180,000 313,316 - 38,529
Total $ 135,043 $ 129,500 $ 269,500 $ 383,316 $ 13,000 $ 51,529 Grand Total $ 23,045,486 $ 26,209,584 $ 26,597,902 $ 26,655,731 $ 25,002,491 $ 25,938,165 2024-25

93 TOC

ENTERPRISE FUNDS

94 TOC

ENTERPRISE FUNDS
FUND: 612 SEWER
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital $ 1,777,995 $ 1,812,690 $ 1,768,179 $ 1,711,020 $ 1,861,620 Revenues:

Revenues 1,190,944 1,272,250 1,272,541 1,383,100 1,424,400 Transfers In 188,378 - - - -
Total Revenues 1,379,323 1,272,250 1,272,541 1,383,100 1,424,400 Expenses:

Salaries and Benefits 349,742 425,000 425,000 444,900 462,900 Services and Supplies 176,577 223,300 223,300 221,200 216,100 Debt Service - - - - -
Operating Equipment 49,503 2,500 2,500 35,000 175,000
Capital Improvement Progra 263,054 100,000 100,000 - 332,000 Transfers Out 550,263 578,900 578,900 531,400 578,900
Total Expenditures 1,389,139 1,329,700 1,329,700 1,232,500 1,764,900 Ending Available Working Capi $ 1,768,179 $ 1,755,240 $ 1,711,020 $ 1,861,620 $ 1,521,120 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.
2024-25

95 TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital $ 346,404 $ 383,404 $ 378,609 $ 415,609 $ 452,609 Revenues:

Revenues 32,205 37,000 37,000 37,000 37,000
Transfers In - - - - -
Total Revenues 32,205 37,000 37,000 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 $ 378,609 $ 420,404 $ 415,609 $ 452,609 $ 489,609 FUND: 634 SEWER FACILITY
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.
2024-25
FUND: 640 WATER
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capita $ 3,129,383 $ 3,981,134 $ 3,096,538 $ 2,210,920 1,431,068 Revenues:

Revenues 7,789,724 8,497,590 8,497,590 9,077,095 9,346,932 Transfers In 705,531 - - 401,100 191,955
Total Revenues 8,495,255 8,497,590 8,497,590 9,478,195 9,538,887 Expenses:

Salaries and Benefits 752,307 853,500 853,500 919,000 955,800 Services and Supplies 769,226 1,619,800 938,800 958,900 988,600 Debt Service 55,000 - - - -
Capital Outlay (10,785) 45,000 45,000 94,000 206,000
Capital Improvement Pr 1,159,486 430,000 430,000 800,000 885,000 Transfers Out 5,802,865 5,762,950 7,115,908 7,486,147 7,785,100 Total Expenditures 8,528,100 8,711,250 9,383,208 10,258,047 10,820,500 Ending Available Working $ 3,096,538 $ 3,767,474 $ 2,210,920 $ 1,431,068 149,456 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. 2024-25

96 TOC
FUND: 641 LOPEZ
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital $ 1,202,662 $ 1,256,189 $ 1,202,662 $ 1,202,662 $ 1,130,291 Revenues:

Revenues - - - - -
Transfers In 3,908,594 3,889,750 5,242,708 5,283,297 3,889,750 Total Revenues 3,908,594 3,889,750 5,242,708 5,283,297 3,889,750 Expenses:

Salaries and Benefits - - - - -
Services and Supplies 3,908,594 3,889,749 5,242,707 5,355,668 3,889,750 Debt Service - - - - -
Capital Outlay - - - - -
Capital Improvement Program - - - - -
Transfers Out - - - - -
Total Expenditures 3,908,594 3,889,749 5,242,707 5,355,668 3,889,750 Ending Available Working Capital $ 1,202,662 $ 1,256,189 $ 1,202,662 $ 1,130,291 $ 1,130,291 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.
2024-25
FUND: 642 WATER FACILITY
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 1,027,028 828,542 1,094,568 $ 1,159,568 $ 1,224,568 Revenues:

Revenues 67,540 65,000 65,000 65,000 65,000
Transfers In - - - - -
Total Revenues 67,540 65,000 65,000 65,000 65,000
Expenses:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Debt Service - - - - -
Capital Outlay - - - - -
Capital Improvement Progra - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Ending Available Working Cap $ 1,094,568 $ 893,542 $ 1,159,568 $ 1,224,568 $ 1,289,568 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.
2024-25

97 TOC

SPECIAL REVENUE
FUNDS

98 TOC

SPECIAL REVENUE FUNDS
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 382,385 $ 403,385 $ 426,745 $ 452,745 $ 478,745 Revenues:

Revenues 44,361 26,000 26,000 26,000 26,000
Transfers In - - - - -
Total Revenues 44,361 26,000 26,000 26,000 26,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 44,361 26,000 26,000 26,000 26,000 Ending Fund Balance $ 426,745 $ 429,385 $ 452,745 $ 478,745 $ 504,745 FUND: 210 FIRE PROTECTION IMPACT FEES
This fund accounts for impact fees collected from developers for the expansion of the existing fire station in order to serve future development. 2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 221,070 $ 0 $ (120) $ 2,180 $ 4,480 Revenues:

Revenues 48,778 46,200 42,200 42,200 42,200
Transfers In - - -
Total Revenues 48,778 46,200 42,200 42,200 42,200
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 269,969 39,900 39,900 39,900 39,900 Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 269,969 39,900 39,900 39,900 39,900
Change in Fund Balance (221,190) 6,300 2,300 2,300 2,300 Ending Fund Balance $ (120) $ 6,300 $ 2,180 $ 4,480 $ 6,780 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. 2024-25

99 TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 58,518 $ 63,818 $ 64,023 $ 69,323 $ 74,623 Revenues:

Revenues 5,504 5,300 5,300 5,300 5,300
Transfers In - - - -
Total Revenues 5,504 5,300 5,300 5,300 5,300
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 25,000
Total Expenditures - - - - 25,000
Change in Fund Balance 5,504 5,300 5,300 5,300 (19,700) Ending Fund Balance $ 64,023 $ 69,118 $ 69,323 $ 74,623 $ 54,923 FUND: 212 POLICE PROTECTION IMPACT FEES
2024-25
This fund accounts for impact fees collected from developers for the expansion of the existing police facility in order to serve future development. 2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,430,686 $ 1,486,686 $ 1,490,533 $ 1,546,533 $ 1,602,533 Revenues:

Revenues 59,846 56,000 56,000 56,000 56,000
Transfers In - - -
Total Revenues 59,846 56,000 56,000 56,000 56,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 310,000
Total Expenditures - - - - 310,000
Change in Fund Balance 59,846 56,000 56,000 56,000 (254,000) Ending Fund Balance $ 1,490,533 $ 1,542,686 $ 1,546,533 $ 1,602,533 $ 1,348,533 FUND: 213 PARK FACILITIES
2024-25
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.

100
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 189,988 $ 178,888 $ 207,747 196,647$ 185,547$ Revenues:

Revenues 56,245 50,900 50,900 50,900 50,900
Transfers In - - - - -
Total Revenues 56,245 50,900 50,900 50,900 50,900
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 38,487 62,000 62,000 62,000 62,000 Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 38,487 62,000 62,000 62,000 62,000
Change in Fund Balance 17,759 (11,100) (11,100) (11,100) (11,100) Ending Fund Balance $ 207,747 $ 167,788 $ 196,647 185,547$ 174,447$ FUND: 214 PARK IMPROVEMENT
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.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 28,486 $ 30,686 $ 32,468 $ 34,668 $ 37,018 Revenues:

Revenues 3,982 2,200 2,200 2,350 2,350
Transfers In - - - - -
Total Revenues 3,982 2,200 2,200 2,350 2,350
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 3,982 2,200 2,200 2,350 2,350
Ending Fund Balance $ 32,468 $ 32,886 $ 34,668 $ 37,018 $ 39,368 FUND: 215 RECREATION COMMUNITY CENTER
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.
2024-25

101
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 32,872$ $ 26,737 $ 34,455 $ 28,320 22,220$ Revenues:

Revenues 10,645 10,000 10,000 10,000 10,000
Transfers In - - - - -
Total Revenues 10,645 10,000 10,000 10,000 10,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 7,467 14,535 14,535 14,500 14,700 Capital Outlay - - - - -
Transfers Out 1,596 1,600 1,600 1,600 1,600
Total Expenditures 9,063 16,135 16,135 16,100 16,300
Change in Fund Balance 1,583 (6,135) (6,135) (6,100) (6,300) Ending Fund Balance 34,455$ $ 20,602 $ 28,320 $ 22,220 15,920$ 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.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 5,014 $ 5,014 $ 6,445 $ 6,445 $ 5,245 Revenues:

Revenues 5,759 5,900 5,900 5,900 5,900
Transfers In - - - - -
Total Revenues 5,759 5,900 5,900 5,900 5,900
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 2,924 5,700 5,700 5,700 5,700
Capital Outlay - - - - -
Transfers Out 1,404 200 200 1,400 1,400
Total Expenditures 4,328 5,900 5,900 7,100 7,100
Change in Fund Balance 1,431 - - (1,200) (1,200)
Ending Fund Balance $ 6,445 $ 5,014 $ 6,445 $ 5,245 $ 4,045 FUND: 217 LANDSCAPE MAINTENANCE DISTRICTS
2024-25
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.

102
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 489,296 $ 501,116 $ 532,177 $ 293,997 $ 305,797 Revenues:

Revenues 63,944 46,500 46,500 46,500 46,500
Transfers In - - - - -
Total Revenues 63,944 46,500 46,500 46,500 46,500
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 18,760 32,380 32,380 32,400 32,400 Capital Outlay - - - - -
Transfers Out 2,304 252,300 252,300 2,300 2,300
Total Expenditures 21,064 284,680 284,680 34,700 34,700 Change in Fund Balance 42,881 (238,180) (238,180) 11,800 11,800 Ending Fund Balance $ 532,177 $ 262,936 $ 293,997 $ 305,797 $ 317,597 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. 2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 81,325 $ 66,564 $ 3,569 $ 63,522 62,352 Revenues:

Revenues 995,352 972,800 1,026,422 1,044,700 1,059,800
Transfers In 474,996 655,000 655,000 695,000 730,000
Total Revenues 1,470,348 1,627,800 1,681,422 1,739,700 1,789,800 Expenditures:

Salaries and Benefits 618,732 600,300 600,300 623,100 647,300 Services and Supplies 346,722 382,700 317,700 382,700 382,700 Debt Service 8,369 8,369 8,369 8,369 8,369
Capital Outlay 14,127 140,000 140,000 140,000 140,000
Transfers Out 560,154 561,100 555,100 586,700 605,200
Total Expenditures 1,548,105 1,692,469 1,621,469 1,740,869 1,783,569 Change in Fund Balance (77,757) (64,669) 59,953 (1,169) 6,231 Ending Fund Balance $ 3,569 $ 1,896 $ 63,522 $ 62,352 68,582 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.
2024-25

103
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 1,136,640$ 1,172,640$ $ 1,195,833 $ 1,231,833 1,267,833 Revenues:

Revenues 59,193 36,000 36,000 36,000 36,000
Transfers In - - - - -
Total Revenues 59,193 36,000 36,000 36,000 36,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 59,193 36,000 36,000 36,000 36,000 Ending Fund Balance 1,195,833$ 1,208,640$ $ 1,231,833 $ 1,267,833 1,303,833 FUND: 222 TRAFFIC SIGNALIZATION
2024-25
This fund accounts for traffic signalization assessment levied against developments for the future cost of traffic signals.
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 153,496 $ 153,996 $ 159,741 $ 160,241 160,741 Revenues:

Revenues 6,245 500 500 500 500
Transfers In - - - - -
Total Revenues 6,245 500 500 500 500
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 6,245 500 500 500 500
Ending Fund Balance $ 159,741 $ 154,496 $ 160,241 $ 160,741 $ 161,241 FUND: 223 TRAFFIC CIRCULATION
This fund accounts for developer traffic mitigation measure fees charged as a result of an environmental review.
2024-25

104
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 2,682,500 2,742,500$ 2,835,751$ $ 2,895,751 $ 2,955,751 Revenues:

Revenues 153,251 60,000 60,000 60,000 60,000
Transfers In - - - - -
Total Revenues 153,251 60,000 60,000 60,000 60,000
Expenditures:

Salaries and Benefits - - - - -
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - 1,238,500
Total Expenditures - - - - 1,238,500
Change in Fund Balance 153,251 60,000 60,000 60,000 (1,178,500) Ending Fund Balance $ 2,835,751 2,802,500$ 2,895,751$ $ 2,955,751 $ 1,777,251 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. 2024-25
FUND: 225 TRANSPORTATION
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,337,178 1,452,178$ 1,412,141$ $ 1,348,141 $ 1,244,141 Revenues:

Revenues 474,959 516,000 516,000 516,000 516,000
Transfers In - - - - -
Total Revenues 474,959 516,000 516,000 516,000 516,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Debt Service - - -
Capital Outlay - - - - -
Transfers Out 399,996 580,000 580,000 620,000 655,000
Total Expenditures 399,996 580,000 580,000 620,000 655,000 Change in Fund Balance 74,963 (64,000) (64,000) (104,000) (139,000) Ending Fund Balance $ 1,412,141 1,388,178$ 1,348,141$ $ 1,244,141 $ 1,105,141 2024-25
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.

105
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 218,316 $ 108,116 $ 251,183 $ 165,883 $ 145,583 Revenues:

Revenues 55,066 52,000 52,000 52,000 52,000
Transfers In - - - - -
Total Revenues 55,066 52,000 52,000 52,000 52,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 22,199 137,300 137,300 72,300 72,300 Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 22,199 137,300 137,300 72,300 72,300 Change in Fund Balance 32,867 (85,300) (85,300) (20,300) (20,300) Ending Fund Balance $ 251,183 $ 22,816 $ 165,883 $ 145,583 $ 125,283 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. 2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 5,891 $ 5,891 $ 5,965 $ 5,965 $ 9,965 Revenues:

Revenues 74 - - 4,000 4,000
Transfers In - - - - -
Total Revenues 74 - - 4,000 4,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 12,500
Total Expenditures - - - - 12,500
Change in Fund Balance 74 - - 4,000 (8,500)
Ending Fund Balance $ 5,965 $ 5,891 $ 5,965 $ 9,965 $ 1,465 FUND: 231 DRAINAGE FACILITY
This fund accounts for impact fees paid by development and are restricted to improving drainage within the City.
2024-25

106
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,172,609 $ 750,738 $ 1,306,929 $ 255,059 $ 281,559 Revenues:

Revenues 134,321 26,500 26,500 26,500 26,500
Transfers In - - - - -
Total Revenues 134,321 26,500 26,500 26,500 26,500
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - 448,370 1,078,370 - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - 448,370 1,078,370 - -
Change in Fund Balance 134,321 (421,870) (1,051,870) 26,500 26,500 Ending Fund Balance $ 1,306,929 $ 328,868 $ 255,059 $ 281,559 $ 308,059 FUND: 232 IN-LIEU AFFORDABLE HOUSING
This fund accounts for monies paid by developers in meeting the City's mandatory affordable housing requirements.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 19,841 $ 19,841 $ 20,648 $ 20,648 $ 20,648 Revenues:

Revenues 807 - - - -
Transfers In - - - - -
Total Revenues 807 - - - -
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 807 - - - -
Ending Fund Balance $ 20,648 $ 19,841 $ 20,648 $ 20,648 $ 20,648 FUND: 233 IN-LIEU UNDERGROUND UTILITY
This fund accounts for monies paid by developers in meeting the City's underground utility requirements.
2024-25

107
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 436,489 $ 420,739 $ 438,185 $ 295,355 298,453$ Revenues:

Revenues 299,754 319,020 319,020 328,598 319,020
Transfers In - - - - -
Total Revenues 299,754 319,020 319,020 328,598 319,020
Salaries and Benefits - - - - -
Services and Supplies 248,055 411,850 411,850 275,500 411,850 Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out 50,004 50,000 50,000 50,000 50,000
Total Expenditures 298,059 461,850 461,850 325,500 461,850 Change in Fund Balance 1,695 (142,830) (142,830) 3,098 (142,830) Ending Fund Balance $ 438,185 $ 277,909 $ 295,355 $ 298,453 155,623$ 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.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 40,851 $ 56,080 $ 73,035 $ 131,035 $ 189,035 Revenues:

Revenues 32,184 58,000 58,000 58,000 58,000
Transfers In - - - - -
Total Revenues 32,184 58,000 58,000 58,000 58,000
Expenditures:

Services and Supplies - - - - -
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 32,184 58,000 58,000 58,000 58,000 Ending Fund Balance $ 73,035 $ 114,080 $ 131,035 $ 189,035 $ 247,035 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. 2024-25

108
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 20,923 $ 0 $ 83,654 $ 83,654 71,263 Revenues:

Revenues 62,731 12,391 202,012 - 12,391
Transfers In - - - - -
Total Revenues 62,731 12,391 202,012 - 12,391
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies - 56,749 202,012 12,391 12,391
Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - 56,749 202,012 12,391 12,391
Change in Fund Balance 62,731 (44,358) - (12,391) -
Ending Fund Balance $ 83,654 $ (44,358) $ 83,654 $ 71,263 71,263 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.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 683,208 $ 558,708 $ 787,470 $ 928,270 $ 831,570 Revenues:

Revenues 129,558 140,800 140,800 140,800 140,800
Transfers In - - - - -
Total Revenues 129,558 140,800 140,800 140,800 140,800
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 240 - - 12,500 -
Capital Outlay 25,056 - - 25,000 25,000
Transfers Out - - - 200,000 125,000
Total Expenditures 25,296 - - 237,500 150,000
Change in Fund Balance 104,262 140,800 140,800 (96,700) (9,200) Ending Fund Balance $ 787,470 $ 699,508 $ 928,270 $ 831,570 $ 822,370 2024-25
FUND: 271 STATE COPS BLOCK GRANT
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.

109
TOC

AGENCY FUNDS

110
TOC

AGENCY FUNDS
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 3,453,077 $ 3,257,408 $ 3,257,408 $ 3,255,408 $ 3,253,408 Revenues:

Revenues 6,456 412,944 412,944 412,944 412,944
Transfers In - - - - -
Total Revenues 6,456 412,944 412,944 412,944 412,944
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 3,350 2,000 2,000 2,000 2,000
Debt Service 168,775 382,944 382,944 382,944 382,944
Capital Outlay - - - - -
Transfers Out 30,000 30,000 30,000 30,000 30,000
Total Expenditures 202,125 414,944 414,944 414,944 414,944 Change in Fund Balance (195,669) (2,000) (2,000) (2,000) (2,000) Ending Fund Balance $ 3,257,408 $ 3,255,408 $ 3,255,408 $ 3,253,408 $ 3,251,408 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. 2024-25

111
TOC
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 1,675,016 $ 1,701,201 $ 1,701,201 $ 1,699,701 $ 1,698,201 Revenues:

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

Salaries and Benefits - - - - -
Services and Supplies 1,674 1,500 1,500 1,500 1,500
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 1,674 1,500 1,500 1,500 1,500
Ending Fund Balance $ 1,701,201 $ 1,699,701 $ 1,699,701 $ 1,698,201 $ 1,696,701 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. 2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED

ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance $ 154,797 $ 156,796 $ 156,796 $ 157,496 $ 158,196 Revenues:

Revenues 11,802 11,000 11,000 11,000 11,000
Transfers In 6,217 - - -
Total Revenues 18,018 11,000 11,000 11,000 11,000
Expenditures:

Salaries and Benefits - - - - -
Services and Supplies 10,115 4,400 4,400 4,400 4,400
Capital Outlay - - - - -
Transfers Out 5,904 5,900 5,900 5,900 149,900
Total Expenditures 16,019 10,300 10,300 10,300 154,300
Ending Fund Balance $ 156,796 $ 157,496 $ 157,496 $ 158,196 $ 14,896 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. 2024-25

112
TOC

CITY STAFFING AND

PERSONNEL COSTS

City Staffing
113
TOC
Number of City FTE Positions: Staffing resources are an integral part of the City’s two-year budget. The current number of budgeted permanent full time equivalent (FTE) positions in FY 2025-26 and FY 2026- 27 is 88.3. The FY 2025-26 and FY 2026-27 budgeted FTEs are the same as the FY 2024-25 budget.

PERSONNEL CHANGES
Staffing levels for FY 2025-26 and FY 2026-27 reflect no change compared to FY 2024-25 in total FTEs.

However, there were three position reclassifications. One reclassification of the Records Clerk/Property & Evidence Clerk to a Supervisor within the Police Department. This reclassification will provide an additional level of supervision for the non-sworn police personnel. The Supervisor will oversee the Police Cadet, Police Service Technician (PST), and Records Clerk.

Two reclassifications are within the Engineering division. The first is a reclassification of the Engineering Inspector to Assistant Engineer. There is no budget impact associated with this shift, as the positions are within the same salary range. The Engineering Inspector can provide Inspections and other tasks, but not all of the Assistant Engineer's duties. However, the Assistant Engineer position can complete Engineering Inspections. The second reclassification is to reclassify the unfilled Assistant Project Manager to an Engineering Technician position. This would streamline the Engineering Division’s succession planning, add engineering capacity, and help deliver the large-scale Capital Improvement Projects that were adopted in the 10-Year CIP Budget.

A summary of FTEs by Department is provided in the following chart and tables.

Personnel Summary
114
TOC
Comparative Budgeted Staffing Levels FY 2022-23 through FY 2026-27 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
City Manager's Office
Elected Officials:

Mayor and City Council 5.0 5.0 5.0 5.0 5.0
Full-time:

City Manager 1.0 1.0 1.0 1.0 1.0
Human Resources Officer 1.0 1.0 1.0 1.0 1.0
Management Analyst 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Human Resources Specialist - - 0.5 0.5 0.5
Contract:

City Attorney 1.0 1.0 1.0 1.0 1.0
City Manager's Office total 9.0 9.0 9.5 9.5 9.5
Legislative & Information Services
Full-time:

Director of Legislative & Info Services 1.0 1.0 1.0 1.0 1.0 Deputy City Clerk/Communications
Coordinator 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Executive Assistant 0.6 0.6 0.6 0.6 0.6
Legislative & Information Services total 2.6 2.6 2.6 2.6 2.6 Administrative Services
Full-time:

Director of Administrative Services 1.0 1.0 1.0 1.0 1.0 Information Tech Manager 1.0 1.0 1.0 1.0 1.0
Finance Manager 1.0 1.0 1.0 1.0 1.0
Senior Accounting Clerk 3.0 3.0 3.0 3.0 3.0
Information Tech Specialist 1.0 1.0 1.0 1.0 1.0
Admin Services Total 7.0 7.0 7.0 7.0 7.0
Community Development Department
Full-time:

Director of Community Development 1.0 1.0 1.0 1.0 1.0
Planning Manager 1.0 1.0 1.0 1.0 1.0
Associate Planner 1.0 1.0 1.0 1.0 1.0
Assistant Planner 1.0 1.0 1.0 1.0 1.0
Community Services Specialist 1.0 1.0 1.0 1.0 1.0
City Engineer 1.0 - - - -
Associate Engineer 1.0 - - - -
Planning and Engineering Permit Tech 1.0 1.0 1.0 1.0 1.0 Engineering Inspector 1.0 - - - -
Building Permit Technician 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Office Assistant I 0.5 0.5 0.5 0.5 0.5
Administrative Intern 0.5 0.5 0.5 0.5 0.5
CDD Total 11.0 8.0 8.0 8.0 8.0

Personnel Summary
115
TOC
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Police Department
Full-time:

Chief of Police 1.0 1.0 1.0 1.0 1.0
Police Commander 2.0 2.0 2.0 2.0 2.0
Police Sergeant 5.0 5.0 5.0 5.0 5.0
Senior Police Officer 6.0 6.0 6.0 6.0 6.0
Police Officer 13.0 13.0 13.0 13.0 13.0
Executive Assistant 1.0 1.0 1.0 1.0 1.0
Records and Property Supervisor - - - 1.0 1.0
Records/Property Evidence Tech 1.0 1.0 1.0 - -
Records Clerk 1.0 1.0 1.0 1.0 1.0
Police Services Technician - - 1.0 1.0 1.0
Part time (FTE):

Police Intern (Cadet) 1.0 0.5 0.5 0.5 0.5
Training Technician 0.5 - - - -
PD total 31.5 30.5 31.5 31.5 31.5
Recreation Administration
Full time:

Director of Recreation Services 1.0 1.0 1.0 1.0 1.0
Recreation Supervisor 0.3 1.0 1.0 1.0 1.0
Recreation Coordinator 0.4 1.0 1.0 1.0 1.0
Part time (FTE):

Office Assistant I 0.4 - - - -
Administrative Secretary 0.6 - - - -
Recreation Specialist - - 0.5 0.5 0.5
Volunteer & Class Coordinator 0.5 0.5 0.5 0.5 0.5
Senior Facility Attendant 0.7 0.7 0.7 0.7 0.7
Facility Attendant 0.5 0.5 0.5 0.5 0.5
Facility Attendant 0.5 0.5 0.5 0.5 0.5
Sports Facility Attendant 0.2 0.2 0.2 0.2 0.2
Subtotal 5.1 5.4 5.9 5.9 5.9
Recreation Preschool
Full time:

Recreation Supervisor 0.2 - - - -
Part time (FTE):

Preschool Teacher 1.7 - - - -
Subtotal 1.9 - - - -
Children in Motion
Full time:

Recreation Supervisor 0.5 - - - -
Recreation Coordinator 0.6 - - - -
Part time (FTE):

Teacher 3.5 - - - -
Assistant Teacher 1.2 - - - -
Assistant I & II 2.2 - - - -
Subtotal 8.0 - - - -
Recreation total 15.0 5.4 5.9 5.9 5.9

Personnel Summary
116
TOC
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Public Works
Public Works Administration
Full time:

Assistant City Manager/Public Works Dire 1.0 1.0 1.0 1.0 1.0 Public Works Manager 0.5 0.5 0.5 0.5 0.5
Administrative Assistant 1.0 1.0 1.0 1.0 1.0
Capital Projects Manager 1.0 1.0 1.0 1.0 1.0
Assistant Capital Projects Manager 1.0 1.0 1.0 - -
Subtotal 4.5 4.5 4.5 3.5 3.5
Engineering
Full time:

City Engineer - 1.0 1.0 1.0 1.0
Senior Engineer - 1.0 1.0 1.0 1.0
Assistant Engineer 1.0 1.0
Engineering Inspector - 1.0 1.0 - -
Engineering Technican - - - 1.0 1.0
Subtotal - 3.0 3.0 4.0 4.0
Parks
Full time:

Parks, Trees, & Landscape Supervisor 1.0 1.0 1.0 1.0 1.0 Public Works Lead Worker - Parks 1.0 1.0 1.0 1.0 1.0
Maintenance Worker 2.0 2.0 2.0 2.0 2.0
Part time (FTE):

Maintenance Worker 0.7 0.7 0.7 0.7 0.7
Subtotal 4.7 4.7 4.7 4.7 4.7
Streets
Full time:

Public Works Manager 0.5 0.5 0.5 0.5 0.5
Streets Maintenance Supervisor 1.0 1.0 1.0 1.0 1.0
Public Works Lead Worker - Streets 1.0 1.0 1.0 1.0 1.0
Maintenance Worker 1.0 1.0 1.0 1.0 1.0
Subtotal 3.5 3.5 3.5 3.5 3.5
Soto Sports Complex
Full time:

Maintenance & Coodination Supervisor 1.0 1.0 1.0 1.0 1.0 Maintenance Worker 1.0 1.0 1.0 1.0 1.0
Subtotal 2.0 2.0 2.0 2.0 2.0
Automotive Shop
Full time:

Citywide Fleet Coordinator 1.0 1.0 1.0 1.0 1.0
Subtotal 1.0 1.0 1.0 1.0 1.0
Government Buildings
Full time:

Maintenance Worker 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Building Maintenance Worker 0.7 0.7 0.7 0.7 0.7

1.7 1.7 1.7 1.7 1.7

Personnel Costs
117
TOC

PERSONNEL COSTS
Personnel costs: Salary and benefit summaries are provided in the following tables and can also be found in the Departments section of this document.

Employee Compensation and Benefits: There are two union-represented groups in the City: the Police Officers Association (POA) for sworn and non-sworn "Safety Police" employees; and Service Employees International Union (SEIU), Local 620, for "Miscellaneous" (all other represented) employees. The remaining, non-represented employees include City Manager, management employees, midmanagement/professional employees, and supervisory/technical employees. Employees receive a wide range of benefits, including (California Public Employees’ Retirement System) (CalPERS) retirement; medical, dental, vision, and life insurance; vacation, holiday, sick, and administrative leave; deferred compensation, employee assistance program, flexible benefits, and tuition reimbursement. Each Memorandum of Understanding with the bargaining units defines the benefit details for each job classification and can be found on the City’s website.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Water Fund
Full time:

Utilities Manager 0.5 0.5 0.5 0.5 0.5
Water & Sewer Systems Supervisor 1.0 1.0 1.0 0.7 0.7
Public Works Lead Worker - Utilities 1.0 1.0 1.0 1.0 1.0 Water Services Worker 1.0 0.6 0.6 1.0 1.0
Maintenance Worker 2.0 2.0 2.0 2.0 2.0
Part time (FTE):

Summer Interns 0.7 0.7 0.7 0.7 0.7
Subtotal 6.2 5.8 5.8 5.9 5.9
Sewer Fund
Full time:

Utilities Manager 0.5 0.5 0.5 0.5 0.5
Water & Sewer Systems Supervisor - - - 0.3 0.3
Water Services Worker - 0.4 0.4 - -
Maintenance Worker 2.0 2.0 2.0 2.0 2.0
Part time (FTE):

Summer Interns 0.7 0.7 0.7 0.7 0.7
Subtotal 3.2 3.6 3.6 3.5 3.5
Department total 26.8 29.8 29.8 29.8 29.8
Elected total: 5.0 5.0 5.0 5.0 5.0
Contract City Attorney total: 1.0 1.0 1.0 1.0 1.0
Full time total: 79.0 79.0 80.0 80.0 80.0
Part time (FTE) total: 17.9 7.3 8.3 8.3 8.3
City Total: 102.9 92.2 94.3 94.3 94.3

Personnel Costs
118
TOC
Personnel Expenditures General Fund
Streets
Fund
Sewer
Enterprise Fund
Water
Enterprise Fund
All Funds
Total
Gross Wages
Salaries Full-Time $ 7,731,700 $ 327,500 $ 231,500 $ 488,400 $ 8,779,100 Salaries Part-Time 387,900 - 12,400 12,400 412,700
Salaries Overtime 235,200 12,000 5,000 14,000 266,200
Gross Wages Total 8,354,800 339,500 248,900 514,800 9,458,000 Insurance
State Disability Ins (SDI) 102,900 3,200 3,100 6,200 115,400 Deferred Compensation 45,800 800 800 800 48,200
Health Insurance 1,260,600 86,500 54,800 106,100 1,508,000 Dental Insurance 70,400 3,500 2,800 5,100 81,800
Vision Insurance 18,300 1,100 700 1,200 21,300
Life Insurance 9,500 500 400 800 11,200
Disability Insurance 22,900 600 600 600 24,700
Retirees Health Insurance 235,000 15,000 2,500 15,000 267,500 Workers Compensation 498,400 8,900 6,500 13,500 527,300 Unemployment Insurance - - - - -
Insurance Total 2,263,800 120,100 72,200 149,300 2,605,400 Other Benefits
Uniform Allowance 14,000 1,500 1,200 2,000 18,700
Car Allowance 23,700 - - - 23,700
Employee Assistance Program 2,000 - - - 2,000
Boot Allowance 2,200 800 400 1,000 4,400
Motor Pay Premium 2,000 - - - 2,000
Bilingual Pay 3,600 - - - 3,600
Cell Phone Allowance 25,500 2,100 1,600 2,400 31,600
Other Benefits Total 73,000 4,400 3,200 5,400 86,000
Retirement
PERS Retirement 1,023,000 28,900 22,700 52,000 1,126,600 PERS UAL 1,974,200 105,100 78,100 158,600 2,316,000
Social Security 468,300 20,300 15,700 31,200 535,500
Medicare 130,700 4,800 3,900 7,500 146,900
PARS Retirement 6,400 - 200 200 6,800
Retirement Total 3,602,600 159,100 120,600 249,500 4,131,800 Total Personnel Costs $ 14,294,200 $ 623,100 $ 444,900 $ 919,000 $ 16,281,200

119
TOC

DEPARTMENT

BUDGET DETAIL

Department Budget Detail
120
TOC

OVERVIEW
Department budget details include the following information for each applicable City department:
• Department Introduction: Outlines a brief overview of a department’s purpose, responsibilities, and core functions.
• Department Purpose and Services and Structure:
o Department Purpose provides a concise summary of why the department exists and the role it plays within the organization.
o Services and Structure section describes the key functions, programs, and organizational makeup of the department.
• Significant Accomplishments: The significant accomplishments section of a budget book highlights a department’s notable achievements from the prior fiscal year. It showcases how resources were used effectively and communicates the impact of the department’s work. • Performance Measures: Metrics used to evaluate how effectively a department is achieving its goals and delivering service.
• Department Work Plans: Outlines the specific goals, initiatives, and major projects a department intends to carry out during the fiscal year. It links the department’s day-to-day operations to the city’s strategic priorities.
• Division/Program Budgets and Personnel Complement:
o Division/Program Budgets provides schedules of the budget included expenditures by Program, Expenditures by Category and Funding Source.
o Personnel Complement outlines the authorized staffing levels for a department or division.

121
TOC
CITY

ADMINISTRATION

City Administration
122
TOC

INTRODUCTION
Cities are a deliberate democratic choice to provide enhanced local public services above and beyond what the State can supply through the legislature and the County Board of Supervisors. In order to effectively operate business functions, the City of Arroyo Grande’s administrative functions are organized into three departments (City Administration, Legislative and Information Services, and Administrative Services) that are the core of an effective government structure.

The City Council
Your City government is entrusted to five elected officials that serve as the City Council – A Mayor, elected every two years, and four City Council Members elected to represent one of four electoral districts every four years on staggered election schedules. These five elected officials make all policy decisions for the City. The Mayor is the ceremonial head of the City and is equal to the other City Council Members when it comes to power to make policy. In addition to interacting with the community and preparing for and attending City Council meetings, all City Council Members also serve on other government bodies such as the South San Luis Obispo County Sanitation District, Five Cities Fire Authority, the Air Pollution Control District, and the Integrated Waste Management Authority. City Council Members receive a small stipend to cover minor expenses of office, offered health insurance, and are enrolled in a non-CalPERS retirement plan.

City Manager
The City Manager is responsible for providing information and recommendations to the City Council, implementing Council policies and programs as well as managing the day-to-day operations of the City. It is the lead department charged with overseeing the implementation of the Major Council Goals.

City Attorney
The City Attorney is a professional specializing in the area of Municipal Law. The City Council appoints a City Attorney to whom it turns for legal advice. The City Attorney attends Council meetings to advise on points of law and to ensure that all proper procedures are maintained. The City Attorney also provides legal advice and represents the City Council, City Manager, City Departments, and other City Boards and Commissions on legal matters. The City Attorney is responsible for drafting ordinances, reviewing contracts, and prosecuting municipal code violations.

Retiree Health
This program accounts for the City’s obligations to retirees for post-employment benefits other than pensions. The City provides health contributions for retirees who have met specific criteria related to years of service.

City Manager
123
TOC

PURPOSE
Support the City Council in carrying out the community’s vision by identifying policy issues, analyzing and recommending solutions to those issues, implementing the Council’s direction, and managing the operation of the organization.

SERVICES AND STRUCTURE
The City Manager’s Office consists of the following programs:

City Management
Provide citywide leadership and coordination to the City organization; provide policy development support for the City Council; implement economic development initiatives; and represent the City's interests in local and regional issues.

Human Resources
Develop, implement, and support programs and processes that add value to the City and its employees; ensure organizational compliance with employment laws and regulations; coordinate employee training and development; and develop policies and procedures to ensure a safe and welcoming workplace.

FY 2024-25 SIGNIFICANT ACCOMPLISHMENTS
• Completion of a contract with the County of San Luis Obispo to provide fire services to Oceano through the Five Cities Fire Authority
• Facilitated Council goal-setting process, as well as updates on current Fiscal Year (FY) goals • Development of coordinated work plan process to implement Council goals for FY 2023-25 • Completed a comprehensive Risk Management Evaluation to identify priority areas to minimize liability exposure
• Implemented a new Human Resources Management system in Tyler Munis, including Payroll, Time & Attendance, Position Control, and Employee Self-Service • Conducted an Organizational Assessment to assess current staffing structure, service delivery, and recommended process improvements
• Offered a Supervisory Training Program to equip supervisors with foundational leadership and communication skills to effectively motivate their teams • The City Council supported the County of San Luis Obispo rejoining the Integrated Waste Management Authority through the approval of the Second Amended and Restated Joint Powers Agreement.
• The City Council authorized additional use of the Affordable Housing Trust Fund in support of 63 affordable housing units at 700 Oak Park Boulevard.
• Obtained a $10,000 grant from the Integrated Waste Management Authority to install water filling stations at three City locations.
• Appropriated $300,000 in American Rescue Plan Act (ARPA) Funds for Homeless Support Services • Received confirmation from the Council to proceed with a Buy Local Program administered by the South County Chamber of Commerce to mitigate impacts from the Traffic Way Bridge Reconstruction project

City Manager
124
TOC

PERFORMANCE MEASURES
Measure FY 23-24
Actual
FY 24-25
Projected
Actual
FY 25-26
Target
FY 26-27 Target
1 Average Time to Fill Vacant Positions 98 days 86 days <75 days <70 days 2 Employee Turnover Rate 13% 12% <10% <10%
3 Compliance training completion rate 100% 100% 100% 100% 4 Number of surveys administered
through FlashVote to engage the
community and gather feedback.

N/A N/A 3 4
FY 2025-27 DEPARTMENT WORK PLAN
Strategic Goal Task/Action
City Manager's Office
° Participate in FCFA Management Committee
° Implement recommendations of Raftelis Organizational Assessment ° Continue coordination with 5Cities Homeless Coalition regarding community needs
° Secure funding for lobbying services and begin State advocacy; work with lobbyist on policies and bills that impact City operations ° Work with the South County Chamber of Commerce on a "Buy Local Program" during the Traffic Way Bridge Replacement Project ° Continue the review and update of old administrative policies ° Develop City’s first legislative platform to inform lobbying services

1.1a 400 W. Branch Disposition and Development Agreement

1.1c Develop an Economic Development Program

1.2a Evaluate cannabis operations that bring in revenue

1.2b Conduct study session with the City Council regarding potential cannabis ordinance
development agreement

1.2d Prepare and adopt cannabis ordinance, if directed by the City Council

1.2e Evaluate feasibility of a Cannabis Tax, if directed

1.3a Work on changes to TBID ordinance for expanded use of TOT funds

1.3b Bring changes to TBID assessment and ordinance to Council for approval

1.3c Evaluate opportunities related to City TBID and potential TOT Measure Standard Operations
Pursue New Revenue Sources

City Manager
125
TOC
Strategic Goal Task/Action
City Manager's Office

1.3d Hold study session with City Council and visitor serving accomodations to eliminate TBID

1.3e If directed by Council, issue RFP for consultant to develop a survey and outreach strategy to community for TOT

1.3f Award contract for consultant to survey and develop outreach strategy for TOT

1.3g Conduct public education regarding need for TOT

1.3h Bring TOT measure to City Council for consideration of placing on the November 2026 ballot

2.1a Meet with Department of Public Works at the County of San Luis Obispo to begin discussion surrounding purchasing some allocated State Water

2.1b If directed by Council, Issue an RFP for a Consultant to evaluate feasibility of State Water Ballot Measure

2.1c Award bid to consultant and begin public outreach and community messaging regarding a potential State Water Ballot Measure

2.1d Seek Council approval on placing a November Ballot Measure

2.2a Identify opportunities and constraints associated with new Water Sources

2.2b Support ongoing development and financing of regional water solution

2.3a Preserve Lopez water supply by working with the County on Lopez litigation
Human Resources
° Complete HRM Implementation
° Update Job Descriptions in preparation for Classification and Compensation Study
° Conduct RFP and launch Classification & Compensation Study ° Conduct Open Enrollment through Munis
° Negotiate Successor MOU with SEIU
° Negotiate Successor MOU with POA
° Revamp Performance Management System
° Recruit and onboard the City’s next Chief of Police
° Complete Risk Management Evaluation recommended items ° Track and report vacancies in compliance with AB 2561 ° Ressurect Safety Committee and address items found in site assessments during the Workplace Violence Prevention plan inspections Achieve Water Resilience
Standard Operations
State Mandate
Pursue New Revenue Sources

City Manager
126
TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Expenditures by Program
City Council $ 149,755 $ 158,500 $ 158,500 $ 147,250 $ 136,400 $ 135,500 Retirees Health 235,000 235,000 235,000 235,000 235,000 235,000 City Manager 644,948 675,800 675,800 665,800 670,200 733,600 Human Resources 191,760 261,600 261,600 281,600 370,420 328,420 City Attorney 510,188 528,750 528,750 528,750 528,750 544,600 Total $ 1,731,651 $ 1,859,650 $ 1,859,650 $ 1,858,400 $ 1,940,770 $ 1,977,120 Expenditures by Category
Salary and Benefits $ 849,143 $ 1,007,700 $ 1,007,700 $ 996,450 $ 1,018,800 $ 1,043,400 Services and Supplies 791,249 851,950 851,950 861,950 921,970 933,720 Operating Equipment - - - - - -
Debt Service - - - - - -
Capital Items and Transfers 91,260 - - - - -
Total $ 1,731,651 $ 1,859,650 $ 1,859,650 $ 1,858,400 $ 1,940,770 $ 1,977,120 Funding Sources
General Fund $ 1,731,651 $ 1,859,650 $ 1,859,650 $ 1,858,400 $ 1,940,770 $ 1,977,120 Personnel Complement
Elected Officials:

Mayor and City Council 5.0 5.0 5.0 5.0 5.0 5.0
Full-time:

City Manager 1.0 1.0 1.0 1.0 1.0 1.0
Human Resources Manager 1.0 1.0 1.0 1.0 1.0 1.0
Management Analyst 1.0 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Human Resources Specialist - 0.5 0.5 0.5 0.5 0.5
Contract:

City Attorney 1.0 1.0 1.0 1.0 1.0 1.0
Total 9.0 9.5 9.5 9.5 9.5 9.5
2024-25

City Manager
127
TOC

CITY MANAGER OFFICE ORGANIZATIONAL CHART

Legislative & Information Services
128
TOC

PURPOSE
At the heart of our mission is a deep commitment to serve the public, City Manager, City staff, and City Council. We strive to protect the democratic process by building a foundation of trust and confidence through transparency, openness, and community involvement. We are dedicated to ensuring the careful preservation and easy accessibility of official documents and legislative history. Our goal is to deliver services that are not only efficient and professional, but also marked by genuine courtesy and respect.

SERVICES AND STRUCTURE
The Legislative & Information Services Department consists of the following programs:

City Clerk
The City Clerk is the local official who administers democratic processes, such as elections, access to City records, and all legislative actions, ensuring transparency to the public. The City Clerk also attests, seals, and/or certifies official documents; receives and files petitions, subpoenas, and summons. The City Clerk serves the City Council, City Manager, City staff, and the public.

Public Information
The Director of Legislative & Information Services/City Clerk also serves as the City's Public Information Officer (PIO). The department is responsible for providing public information through various media such as online, print, social media, and a Mobile app. The department is the webmaster for the City website and Mobile app, "My AG." Staff are also responsible for the City's social media accounts and the City newsletter, Arroyo Grande Gazette.

FY 2024-25 SIGNIFICANT ACCOMPLISHMENTS
• Administered the November 5, 2024, Municipal Election • Coordinated education efforts for Transaction & Use Tax Measure, Measure E-24 • Assisted with the Council Chamber AV Upgrade Project, transitioned to automated public meetings, and developed best practices for all City legislative bodies • Conducted extensive public outreach for the Traffic Way Bridge Replacement Project • Implemented an ADA web accessibility tool on the City’s website • Issued 4 more issues of the City newsletter – the Arroyo Grande Gazette • Developed a City Seal, City Logo, and Police Badge Policy • Implemented modern, paperless processes, including paperless Municipal Code Supplements and legislative action recordkeeping for greater internal efficiencies and cost savings • Completed a comprehensive update of the City’s Records Retention Schedule

Legislative & Information Services
129
TOC

PERFORMANCE MEASURES
Measure FY 23-24
Actual
FY 24-25
Projected
Actual
FY 25-26
Target
FY 26-27
Target
1 Percentage of Legal Notices
published within established
timelines
100% 100% 100% 100%
2 Percentage of Public Records
Act Requests Processed within
required timeframes
100% 100% 100% 100%
3 Citywide Newsletters Issued 4 4 4 4
4 Information spotlights on City
website
77 130* 100 100
5 Press Releases Issued 45 43 45 45
6 Total followers on all City social
media channels
14,341 20,575 24,000 26,000
*This number of spotlights is higher due to extensive communication efforts for the Traffic Way Bridge Replacement Project
FY 2025-27 DEPARTMENT WORK PLAN
Strategic Goal Task/Action
° In-house Ethics Training for Officials and Staff
° 2026 General Municipal Election
° City Website Refresh
° City Website ADA Updates
° Traffic Way Bridge Project Communications
° Implement Freedom of Information Act (FOIA) System
° Develop Brand Guidelines
° Implement LaserFische Records Management Module
° Complete Permanent Records Scanning Project
° Replace City Hall Bulletin Board

1.2b Conduct study session with the City Council regarding potential cannabis ordinance

1.2c Conduct study session with the City Council regarding potential cannabis development agreement

1.3a Work on changes to TBID ordinance for expanded use of TOT funds

1.3b Bring changes to TBID assessment and ordinance to Council for approval

1.3c Evaluate opportunities related to City TBID and potential TOT Measure

1.3d Hold study session with City Council and visitor serving accomodations to eliminate TBID
Legislative and Information Services
State Mandate
Standard Operations
Pursue New Revenue Sources

Legislative & Information Services
130
TOC

LEGISLATIVE AND INFORMATION SERVICES ORGANIZATIONAL CHART Strategic Goal Task/Action

1.3e If directed by Council, issue RFP for consultant to develop a survey and outreach strategy to community for TOT

1.3f Award contract for consultant to survey and develop outreach strategy for TOT

1.3g Conduct public education regarding need for TOT

1.3h Bring TOT measure to City Council for consideration of placing on the November 2026 ballot

2.1b If directed by Council, Issue an RFP for a Consultant to evaluate feasibility of State Water Ballot Measure

2.1c Award bid to consultant and begin public outreach and community messaging regarding a potential State Water Ballot Measure

2.1d Seek Council approval on placing a November Ballot Measure East Grand Avenue Corridor
Redevelopment (Halcyon Road to
Elm Street) 5.2b Public Outreach
Pursue New Revenue Sources
Achieve Water Resilience

Legislative & Information Services
131
TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Expenditures by Program
City Clerk $ 396,607 $ 547,160 $ 547,160 $ 547,160 $ 453,575 $ 511,880 Printing/Duplicating 25,405 29,900 29,900 22,900 27,900 27,900 Total $ 422,012 $ 577,060 $ 577,060 $ 570,060 $ 481,475 $ 539,780 Expenditures by Category
Salary and Benefits $ 332,799 $ 357,400 $ 357,400 $ 357,400 $ 382,100 $ 395,200 Services and Supplies 89,213 219,660 219,660 212,660 99,375 144,580 Operating Equipment - - - - - -
Debt Service - - - - - -
Capital Items - - - - - -
Total $ 422,012 $ 577,060 $ 577,060 $ 570,060 $ 481,475 $ 539,780 Funding Sources
General Fund $ 422,012 $ 577,060 $ 577,060 $ 570,060 $ 481,475 $ 539,780 Personnel Complement
Full-time:

Director 1.0 1.0 1.0 1.0 1.0 1.0
Deputy City Clerk/
Communications Coordinator 1.0 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Executive Secretary 0.6 0.6 0.6 0.6 0.6 0.6
Total 2.6 2.6 2.6 2.6 2.6 2.6
2024-25

Administrative Services
132
TOC

PURPOSE
Provide accurate and timely financial and accounting information through the maintenance of appropriate financial systems and effective internal controls to promote the City’s fiscal accountability. To engage in a partnership with the departments to provide technical guidance in an effective, strategic, and fiscally responsible manner for all technology initiatives.

SERVICES AND STRUCTURE
The Administrative Services Department consists of the following programs:

Financial Services
The Financial Services Division manages the City's financial systems by providing accurate and timely actions and information to City Council, operating departments, and the public. Policies, record keeping, and reporting are carried out in compliance with generally accepted accounting principles and all applicable laws and regulations. Areas of responsibility include utility billing, cash receipting, accounts payable, payroll, budgeting, business licensing, and non-departmental charges that are not directly related to a specific department.

Information Technology
The Information Technology (IT) Division handles all centralized and many decentralized City technology services, facilitating the City's ability to deliver effective and efficient service to the public. IT staff perform maintenance and upgrades of the City's IT network system, ensures network security, supports multiple software applications, manages the Citywide IT replacement program purchases, provides technical support to City staff members, and completes research and planning for new technology solution.

FY 2024-25 SIGNIFICANT ACCOMPLISHMENTS
• Completion of the Phase I - Financial implementation of Enterprise ERP Financials (Munis) 07/01/2025
• California Society of Municipal Finance Officers (CSMFO) award for Operating Budget for the City’s FY 2023-25 Biennial Budget
• GFOA Distinguished Budget Presentation Award for the City’s FY 2023-25 Biennial Budget • Updated Solid Waste Rates
• Completed RFP and selected Auditing Firm
• Updated the Measure O-06 Local Sales Tax Measure Annual report • Collaborated with City Departments to ensure effective allocation, timely utilization, and accurate accounting of the American Rescue Plan Act (ARPA) funding. • Successfully implemented GASB 96, establishing new accounting and reporting standards for subscription-based information technology arrangements. • Completed the Public Safety Camera System Project
• Completed the Chamber AV System Upgrade Project
• Completed the Phone System Upgrade Project
• Completed EOC Upgrade at PD
• Completed PD CAD Update
• Assisted PD with MDC Deployment in new Police Fleet

Administrative Services
133
TOC

PERFORMANCE MEASURES
Measure FY 23-24
Actual
FY 24-25
Projected
Actual
FY 25-26
Target
FY 26-27
Target
1 Complete ACFR 180 days after
close of fiscal year
03/29/2025 12/31/2025 12/31/2026 12/31/2027
2 Number of A/P checks generated
annually
3612 3600 3600 3600
3 Number of payroll checks
generated annually
3,111 3,180 3,100 3,100
4 Number of IT tickets processed 689 619 660 670
FY 2025-27 DEPARTMENT WORK PLAN

ADMINISTRATIVE SERVICES ORGANIZATIONAL CHART
Strategic Goal Task/Action
° Complete Payroll Impementation of Munis conversion
° Utility Billing Munis conversion
° Finalize 2025 ACFR by 12/31/25
° Mid-Cycle FY 2026-27 Budget Update
° Finalize 2026 ACFR by 12/31/26
° Provide 5-Year Review of Measure O-06 Local Sales Tax ° FY 2027-29 Budget Preparation
Pursue New Revenue Sources 1.2e Evaluate feasibility of a Cannabis Tax, if directed Prioritize Key Infrastructure Projects 3.2a Pursue Grant applications and administration for infrastructure projects Achieve Water Resilience 2.2c Conduct a water and wastewater rate study to adjust rates based on changes to water supply and changing or new regional partnerships Administrative Services
Standard Operations

Administrative Services
134
TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Expenditures by Program
Administrative Services $ 840,498 $ 897,280 $ 897,280 $ 968,330 $ 945,680 $ 973,580 Information Technology 844,183 1,084,600 1,244,650 1,047,100 1,103,300 1,132,800 Non-Departmental 3,942,228 5,267,416 5,267,416 5,505,140 3,316,400 3,578,700 FCFA (Fire Service) 2,941,910 2,983,500 2,983,500 2,983,500 3,082,000 3,174,400 CalPERS UAL payment - - - - - -
Total $ 8,568,819 $ 10,232,796 $ 10,392,846 $ 10,504,070 $ 8,447,380 $ 8,859,480 Expenditures by Category
Salary and Benefits $ 2,998,304 $ 2,588,100 $ 2,588,100 $ 2,795,724 $ 2,856,500 $ 3,069,600 Services and Supplies 4,833,047 5,158,096 5,318,146 5,221,746 5,464,280 5,674,880 Operating Eqipment - - - - - -
Debt Service 11,600 11,600 11,600 11,600 11,600 -
Capital Items and Transfers 725,868 2,475,000 2,475,000 2,475,000 115,000 115,000 Total $ 8,568,819 $ 10,232,796 $ 10,392,846 $ 10,504,070 $ 8,447,380 $ 8,859,480 Funding Sources
General Fund $ 8,568,819 $ 10,232,796 $ 10,392,846 $ 10,504,070 $ 8,447,380 $ 8,859,480 Personnel Complement
Full-time:

Director 1.0 1.0 1.0 1.0 1.0 1.0
Information Tech Manager 1.0 1.0 1.0 1.0 1.0 1.0
Finance Manager 1.0 1.0 1.0 1.0 1.0 1.0
Senior Accounting Clerk 3.0 3.0 3.0 3.0 3.0 3.0
Information Tech Specialist 1.0 1.0 1.0 1.0 1.0 1.0
Total 7.0 7.0 7.0 7.0 7.0 7.0
2024-25

135
TOC

PUBLIC WORKS

Public Works
136
TOC

PURPOSE
The City of Arroyo Grande Public Works Department provides high-quality, cost-effective services that ensure that the design, construction, maintenance, and operation of public infrastructure, facilities, and services are responsive to the needs of residents, visitors, businesses, and other City departments.

SERVICES AND STRUCTURE
The Public Works Department consists of the following programs:

Emergency and Day-to-Day Demands
Staff respond to emergency events such as storms and resulting flooding, etc. After traffic accidents, staff facilitate street closures and debris cleanup. In addition, the Department repairs and fills potholes, installs red curbs and street signs, and maintains all street and traffic lighting. The Department responds to fallen trees or branches within the City limits and also facilitates homeless encampment posting and cleanup.

Staff respond to facility maintenance requests, such as electrical, plumbing, pest control, or other safety issues and collect and dispose of trash within the City limits.

Facilities Maintenance
Staff conduct all maintenance activities at City Facilities, such as AC/heating maintenance, office painting, moving and assembly of office furniture, trash and sanitization of offices and restrooms, and landscape maintenance. The Department also maintains all Public Use facilities such as the Woman’s Club, Recreation building, park facilities, including gazebos, BBQs, and picnic tables, and public restrooms, including plumbing repairs, graffiti removal, vandalism repair, maintenance, stocking, and sanitization.

Annual Pavement Management Plan/Street Repairs Program
Each year, the Department identifies street segments that require certain maintenance treatments. The intention of this is to perform slurry seal, overlays, and digout repairs to slow the deterioration and avoid near-term reconstruction. In addition to the treatments mentioned above, the Program proposes to include refreshing existing traffic striping and pavement markings on certain arterial streets.

Annual Concrete Repairs Program
Each year, staff identify damaged sidewalks requiring repair to mitigate the potential for trip and fall hazards located in the public right-of-way, with a priority focus on commercial areas, high pedestrian traffic areas, and safe routes to schools. Sidewalk gaps are also evaluated for cost and connectivity, and curb ramp improvements are included to the extent possible.

Annual Storm Drain Maintenance Program
The City’s storm drain maintenance program includes debris removal in the City’s 517 storm drain inlets and outfalls. All maintenance is in preparation for storm events, compliance with MS4 permits, and allowing drainage to function as designed. This also includes maintenance of all 8 City-owned drainage and retention basins and other drainage facilities.

Annual Soto Sports Complex Annual Field Maintenance Program Annually, the Department conducts hydro seeding and turf maintenance as well as infield and outfield dirt improvements. Staff manage all irrigation maintenance, fence repairs, and field lighting maintenance.

Public Works
137
TOC
Annual Vegetation Maintenance Program
Staff conduct annual street, parks, and open space tree and shrub trimming, removal, and planting, hazardous fuels vegetation management at development and interfaces (i.e. Ocean Oaks Condos), as well as turf management at parks. The City has received USA accreditation as a Tree City.

Sewer Lift Station Maintenance
All five (5) sewer lift stations are cleaned along with 10 check valves. This maintenance program helps ensure trouble free operation of these stations.

Water Conservation Programs
Cash for Grass projects, Washing Machine Rebates, and Home Water Audits are provided as part of the City’s Water Conservation Program. Home water audits help our customers make changes in their current water use to help them continue to conserve water.

Annual Water System Air/Vacuum Valve Program
All of the City’s 130 Air/Vac valves are cleaned and tested for proper operation. Air and vacuums formed in the pipeline can have serious effects on the operation of the pipeline like pipe failure, pressure build and vibration. Air/Vacuum valves allow large volumes of air to be exhausted from or admitted into a pipeline as it is being filled or drained.

Annual Water Audit Program
The Audit is a requirement from the Department of Water Resources. This detailed audit must be validated by a third party certified by the American Water Works Association.

Fleet, Equipment, and Fuel Management and Coordination
The Department maintains the Citywide fleet, which includes tire and oil changes, brake pads and rotors maintenance, and more complex repairs on equipment. Staff manage the replacement program and surplus vehicles and equipment program (not including Five Cities Fire Authority), including the procurement and bids for new vehicles and equipment. The Department manages fuel purchasing, pump system and fuel dispenser system maintenance, and annually reviews the San Luis Obispo County Air Pollution Control District Permit.

Engineering
The Engineering Division is responsible for the City’s long-term infrastructure, including projects for repair or improvement of existing infrastructure, as well as ensuring that new infrastructure, including infrastructure built by new development, meets the City’s standards.

FY 2024-25 SIGNIFICANT ACCOMPLISHMENTS
• Oak Park Boulevard and El Camino Real drainage repair • Implementation of water conservation programs and preparation of a Resolution rescinding the declaration of Stage 1 Water Shortage Emergency and related restrictions and penalties • Approval of both the Pavement Management Plan and Concrete Repairs Programs • Safe, responsive, and coordinated response to the winter 2024 storm emergencies • Storm-related debris removal projects in AG Creek
• Pavement Maintenance on 17.7 miles of road
• Finished rehabilitation of Swinging Bridge

Public Works
138
TOC
• Completed design and right-of-way acquisition for Traffic Way Bridge Replacement Project • Completed frontage improvements at 191 Tally Ho
• Replaced water main on Fair Oaks Avenue and Cornwall Street • Completed trenchless repair of sewer lines across Highway 101 and through Arroyo Grande Cemetery • Began design of Halcyon Complete Streets
• Replaced 3,500 feet of 8” diameter 1929 cast iron water main along with 56 water services • Replaced 305 water meters
• Completed the required Lead Service Line Inventory and submitted to the State Water Resources Control Board
• Replaced 50 galvanized pipe water services
• Completed Annual flushing program
• Cleaned 32 miles of sewer main
• Lined 450 feet of 8” cast iron sewer main under HWY 101 • Lined 600 feet of sewer main located in AG Cemetery

PERFORMANCE MEASURES
Measure FY 23-24
Actual
FY 24-25
Projected
Actual
FY 25-26
Target
FY 26-27
Target
1 Pavement Condition Index 53 56 58 59
2 Pothole repairs (sacks of fill) 76 sacks =
85 pothole
repairs
154 sacks =
200+ potholes
200
pothole
repairs
150 pothole
repairs
3 Larger in-house pavement repairs 2 yards of
asphalt hot
mix
7 yards of
asphalt hot
mix
10 Tons of
Hot Mix AC
12 Tons of Hot
Mix AC
4 Storm Drain Inlet inspection and
maintenance
517 inlets 517 inlets 517 inlets 517 inlets
FY 2025-27 DEPARTMENT WORK PLAN
Strategic Goal Task/Action
Public Works
° Develop and implement a sidewalk repair program
° Begin implementing the 13-year pavement improvement program ° Negotiate Golden State Interconnect
° Establish an on-call trades list
° Update City Engineering Standards
° Update City construction agreement
° Radar Speed survey 5-year extension
° Develop Asset Management progam
° Sidewalk repairs
° Pothole and roadway repairs
° Storm drain maintenance
° Road signage and striping repairs
° Landscape projects including the Oak Park Traffic Median Standard Operations

Public Works
139
TOC

Public Works
140
TOC

PUBLIC WORKS DEPARTMENT ORGANIZATIONAL CHART

Public Works
141
TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Expenditures by Program
Public Works Administration $ 1,016,125 $ 1,187,570 $ 1,187,570 $ 1,180,850 $ 1,257,250 $ 1,292,950 Engineering 591,687 757,700 757,700 729,700 670,600 721,700 Park Maintenance 660,428 630,489 630,489 762,216 685,430 703,180 Soto Sports Complex Maint. 232,830 255,050 255,050 255,050 267,500 274,900 Automotive Shop 210,420 190,100 190,100 207,279 202,400 208,500 Government Buildings 311,882 263,450 263,450 264,500 283,600 288,700 Total $ 3,023,372 $ 3,284,359 $ 3,284,359 $ 3,399,595 $ 3,366,780 $ 3,489,930 Expenditures by Category
Salary and Benefits $ 1,892,378 $ 2,291,500 $ 2,291,500 $ 2,291,500 $ 2,358,000 $ 2,472,300 Services and Supplies 988,785 942,859 942,859 909,600 1,008,780 1,017,630 Operating Eqipment 127,029 - - 133,316 - -
Debt Service 15,179 - - 15,179 - -
Capital Items - 50,000 50,000 50,000 - -
Transfers - - - - - -
Total $ 3,023,372 $ 3,284,359 $ 3,284,359 $ 3,399,595 $ 3,366,780 $ 3,489,930 Funding Sources
General Fund 3,023,372 3,284,359 3,284,359 3,399,595 3,366,780 3,489,930 Funding Source Total $ 3,023,372 $ 3,284,359 $ 3,284,359 $ 3,399,595 $ 3,366,780 $ 3,489,930 2023-24 2025-26 2026-27

PROPOSED PROPOSED PROPOSED ESTIMATED PROPOSED PROPOSED

BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
Personnel Complement
Public Works Administration
Full time:

Director of Public Works 1.0 1.0 1.0 1.0 1.0 1.0
Administrative Secretary 1.0 1.0 1.0 1.0 1.0 1.0
Capital Projects Manager 1.0 1.0 1.0 1.0 1.0 1.0
Assistant Capital Projects Manager 1.0 1.0 1.0 1.0 - -
Subtotal 4.0 4.0 4.0 4.0 3.0 3.0
Engineering
Full time:

City Engineer 1.0 1.0 1.0 1.0 1.0 1.0
Associate Engineer 1.0 1.0 1.0 1.0 1.0 1.0
Engineering Inspector 1.0 1.0 1.0 1.0 1.0 1.0
Engineering Technician - - - - 1.0 1.0
Subtotal 3.0 3.0 3.0 3.0 4.0 4.0
Parks
Full time:

Public Works Manager 0.5 0.5 0.5 0.5 0.5 0.5
Parks, Trees, & Landscape Supervisor 1.0 1.0 1.0 1.0 1.0 1.0 Maintenance Lead Worker 1.0 1.0 1.0 1.0 1.0 1.0
Maintenance Worker 2.0 2.0 2.0 2.0 2.0 2.0
Part time (FTE):

Maintenance Worker 0.7 0.7 0.7 0.7 0.7 0.7
Subtotal 5.2 5.2 5.2 5.2 5.2 5.2
2024-25
2024-25

Public Works
142
TOC
2023-24 2025-26 2026-27

PROPOSED PROPOSED PROPOSED ESTIMATED PROPOSED PROPOSED

BUDGET BUDGET BUDGET ACTUAL BUDGET BUDGET
Personnel Complement Continued
Streets
Full time:

Public Works Manager 0.5 0.5 0.5 0.5 0.5 0.5
Streets Maintenance Supervisor 1.0 1.0 1.0 1.0 1.0 1.0
Maintenance Lead Worker 1.0 1.0 1.0 1.0 1.0 1.0
Maintenance Worker 1.0 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Maintenance Worker - - - - - -
Subtotal 3.5 3.5 3.5 3.5 3.5 3.5
Soto Sports Complex
Full time:

Maintenance & Coodination Supervisor 1.0 1.0 1.0 1.0 1.0 1.0 Maintenance Worker 1.0 1.0 1.0 1.0 1.0 1.0
Subtotal 2.0 2.0 2.0 2.0 2.0 2.0
Automotive Shop
Full time:

Fleet Maintenance Coordinator 1.0 1.0 1.0 1.0 1.0 1.0
Subtotal 1.0 1.0 1.0 1.0 1.0 1.0
Government Buildings
Full time:

Building Maintenance Worker 1.0 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Maintenance Worker 0.7 0.7 0.7 0.7 0.7 0.7

1.7 1.7 1.7 1.7 1.7 1.7
Water Fund
Full time:

Utilities Manager 0.5 0.5 0.5 0.5 0.5 0.5
Public Works Supervisor 0.7 0.7 0.7 0.7 0.7 0.7
Public Works Lead Worker 1.0 1.0 1.0 1.0 1.0 1.0
Maintenance Worker 2.0 2.0 2.0 2.0 2.0 2.0
Water Service Worker 1.0 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Summer Interns 0.7 0.7 0.7 0.7 0.7 0.7
Subtotal 5.9 5.9 5.9 5.9 5.9 5.9
Sewer Fund
Full time:

Utilities Manager 0.5 0.5 0.5 0.5 0.5 0.5
Public Works Supervisor 0.3 0.3 0.3 0.3 0.3 0.3
Maintenance Worker 2.0 2.0 2.0 2.0 2.0 2.0
Part time (FTE):

Summer Interns 0.7 0.7 0.7 0.7 0.7 0.7
Subtotal 3.5 3.5 3.5 3.5 3.5 3.5
Department Total 29.8 29.8 29.8 29.8 29.8 29.8
2024-25

143
TOC

COMMUNITY

DEVELOPMENT

Community Development
144
TOC

PURPOSE
The Community Development Department is dedicated to promoting a diverse and equitable city while maintaining the City's unique environment and character, and balancing economic opportunities through effective land use planning and development review processes.

SERVICES AND STRUCTURE
The Community Development Department works toward its mission through three divisions staffed by highly specialized professionals:

Planning Division
Professional planners develop new long-range plans and programs for the development or redevelopment of the City based upon the ever-changing needs and wants of the community to enhance the quality of life for everyone who lives, works, and plays in Arroyo Grande. This includes: land use, circulation, housing, economic development, agriculture, and open space stewardship.

Professional planners review proposed development projects to ensure they are designed and will function according to the adopted plans of the community. By doing so, new developments must meet high standards.

Building and Life Safety Division
The State of California mandates that virtually all buildings and structures be constructed to very detailed building codes to reduce death, injuries, and damage from improperly designed and constructed buildings, and fires, earthquakes, and other natural disasters. The California Building Codes also incorporate many regulations to achieve State public policy goals such as disabled access and energy conservation. The Division also reviews project plans, issues permits and provides inspection services for compliance with City ordinances, fire and life safety codes, International Property Maintenance Code and works closely with the Community Services Specialist for code compliance.

Community Services Division
The Community Services Specialist (CSS) conducts code enforcement for the City. The CSS performs a wide variety of tasks such as providing information, educating the public, and conducting appropriate investigations. The CSS investigates alleged violations generated by observation or public complaints to ensure compliance with regulations in the Arroyo Grande Municipal Code.

The code enforcement aspect also includes the enforcement of regulations related to temporary signs and banners; abandoned, junk, or inoperable vehicles; unauthorized living in recreational vehicles; grossly unreasonable accumulations of garbage, trash, or any other material that creates an unsafe or unhealthy condition for the neighborhood or the public in general.

FY 2024-25 SIGNIFICANT ACCOMPLISHMENTS
• Adoption of Irrigated Turf Ordinance
• Adoption of Emergency Shelter Ordinance
• Adoption of Halcyon Complete Streets Plan
• Corbett Canyon Stream Restoration CUP
• Arroyo Grande Stream Gauge CUP
• New Building Services Consultant Agreement
• Adoption of Formula Business Ordinance

Community Development
145
TOC
• Completion of the Active Transportation Plan
• Adoption of Revised Public Art Guidelines
• Adoption of Housing Element Programs Ordinance
• Adoption of Telecommunications Ordinance
• Continued Comprehensive General Plan Update
o Completion of Existing Conditions and Trends Workbook o Completion of Vision Statement and Guiding Principles o Completion of Land Use Scenarios

PERFORMANCE MEASURES
Measure FY 23-24
Actual
FY 24-25
Projected
Actual
FY 25-26
Target
FY 26-27
Target
1 Building Permits Reviewed within
15 days 95% 95% 95% 95%
2 Percent of potential code
enforcement cases with
investigation initiated within 7
business days
97% 94% 95% 95%
3 Percent of discretionary permits
with initial completeness review
within 30 days
100% 100% 100% 100%
FY 2025-27 DEPARTMENT WORK PLAN
Strategic Goal Task/Action
° Community Services Grants
° Climate Action Plan Update
° Development Code Update
° Ordinance Clean-up
° 2025 Building Code Update
° Arroyo Grande Hospital CUP and EIR
° Meadowbrook Apartments CUP
° CDBG program
° SB 1383 Enforcement
Standard Operations
State Mandate
Community Development

Community Development
146
TOC
Strategic Goal Task/Action

1.1a 400 W. Branch Disposition and Development Agreement

1.2a Evaluate cannabis operations that bring in revenue

1.2b Conduct study session with the City Council regarding potential cannabis ordinance

1.2c Conduct study session with the City Council regarding potential cannabis development agreement

1.2d Prepare and adopt cannabis ordinance, if directed by the City Council

1.2e Evaluate feasibility of a Cannabis Tax, if directed Implement Road and Sidewalk
Improvements 3.2a Pursue Grant applications and administration for infrastructure projects

4.1a Retail Market Analysis

4.1b Market Demand Studies

4.2a Land and Safety Analysis

4.2b Administrative Draft

4.3a Complete draft EIR

4.3b Complete final EIR

4.4a Kick off code update

4.4b Bring code changes to Planning Commission for approval

4.4c Bring draft Ordinance of code revision update to Council

4.5a Kick off CAP and research

4.5b Admin Draft

4.5c Final CAP
Land Use Designation Map
Workshops: Small Business/Economic Development; Environmental Justice; Draft General Plan Elements

5.1a Define scope, research other communities

5.2a Kick Off

5.2b Public Outreach

5.3a Environmental Review

5.4a Administrative Draft Plan

5.5a Final Draft

5.5b Planning Commission Hearings

5.5c City Council Hearings
East Grand Avenue Corridor
Redevelopment (Halcyon Road to
Elm Street)
Pursue New Revenue Sources
Complete General Plan Update

Community Development
147
TOC

COMMUNITY DEVELOPMENT DEPARTMENT ORGANIZATIONAL CHART

Community Development
148
TOC
2023-24 2025-26 2026-27

FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED

ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Expenditures by Program
Planning $ 1,049,165 $ 1,399,382 $ 1,399,382 $ 1,161,200 $ 1,469,200 $ 1,532,400 Engineering - - - - - -
Building & Life Safety 631,620 680,240 680,240 680,240 680,940 685,240 Total $ 1,680,784 $ 2,079,622 $ 2,079,622 $ 1,841,440 $ 2,150,140 $ 2,217,640 Expenditures by Category
Salary and Benefits $ 885,449 $ 1,041,500 $ 1,041,500 $ 1,041,500 $ 1,091,400 $ 1,128,900 Services and Supplies 795,335 1,038,122 1,038,122 799,940 1,058,740 1,088,740 Operating Eqipment - - - - - -
Debt Service - - - - - -
Capital Items and Transfers - - - - - -
Total $ 1,680,784 $ 2,079,622 $ 2,079,622 $ 1,841,440 $ 2,150,140 $ 2,217,640 Funding Sources
General Fund 1,675,784 2,074,622 2,074,622 1,836,440 2,145,140 2,212,640 TBID 5,000 5,000 5,000 5,000 5,000 5,000
Funding Source Total $ 1,680,784 $ 2,079,622 $ 2,079,622 $ 1,841,440 $ 2,150,140 $ 2,217,640 Personnel Complement
Full-time:

Director 1.0 1.0 1.0 1.0 1.0 1.0
Planning Manager 1.0 1.0 1.0 1.0 1.0 1.0
Associate Planner 1.0 1.0 1.0 1.0 1.0 1.0
Assistant Planner 1.0 1.0 1.0 1.0 1.0 1.0
Community Services Specialist 1.0 1.0 1.0 1.0 1.0 1.0
Permit Technician 1.0 1.0 1.0 1.0 1.0 1.0
Building Permit Technician 1.0 1.0 1.0 1.0 1.0 1.0
Part time (FTE):

Office Assistant I 0.5 0.5 0.5 0.5 0.5 0.5
Comm. Development Intern 0.5 0.5 0.5 0.5 0.5 0.5
Total 8.0 8.0 8.0 8.0 8.0 8.0
2024-25

149
TOC

PUBLIC SAFETY

Police Department
150
TOC

INTRODUCTION
Keeping people safe is a core element of City services. In addition to the City’s efforts to avoid unsafe conditions, the City also provides services that quickly respond when needed.

POLICE DEPARTMENT

PURPOSE
The purpose of the Arroyo Grande Police Department is to maintain public peace, safeguard lives and property, and provide for a quality of life whereby those persons within the City of Arroyo Grande have a sense of security and freedom in their daily activities. To achieve these ends, the Arroyo Grande Police Department will maintain the capability to provide a superior level of law enforcement and related services that are appropriate and timely. Specifically, the Arroyo Grande Police Department will maintain a viable proactive organization that recognizes and effectively responds to current and future community needs and maximizes the available resources, personnel, and technology.

SERVICES AND STRUCTURE
The Police department is responsible for maintaining public order and safety, enforcing the law, and preventing, detecting, and investigating criminal activities.

The Police Department is led by a Chief of Police and is supported by two Commanders who oversee two divisions: Support Services and Patrol Services. Support Services consist of investigations, Police Service Technician, records, property, traffic bureau, and evidence, youth cadet program and School Resource Officer. Patrol Services consists of patrol operations, regional SWAT, field training program, communication and dispatch MOU.

The Police Department operates the following programs:

Support Services Program
Support Services facilitates Crime prevention education, homeless outreach, neighborhood watch programs, tobacco compliance, and planning for special events.

Patrol Services Program
Patrol Services facilitates directed traffic enforcement, DUI grants, Sex Offender registration, probation and warrant sweeps, high-risk operations, emergency services, and military surplus acquisition.

FY 2024-25 SIGNIFICANT ACCOMPLISHMENTS
• Introduced a full-time Police Services Technician dedicated to assisting with non-emergent calls for service, such as crime reports, parking issues, ordinance enforcement, property and evidence, crime scene processing, and traffic collision investigation.
• Successful completion of a Property and Evidence Audit • Introduced License Plate Reader technology
• Introduced a Public Safety Video camera program
• Updated Emergency Operation Center infrastructure and technology • Developed standard operating procedures for a shared radio communication structure with the Grover Beach Police Department, enabling faster mutual aid response and support to each agency.