Agenda Item No. 10
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 13, 2022 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director Kristin Eriksson, Deputy City Manager
SUBJECT: FY 2022-23 Proposed Revised Budget
RECOMMENDATION
Conduct a public hearing to review the FY 2022-23 Proposed Revised Budget and provide direction to staff to finalize the budget for adoption on June 27, 2022.
BACKGROUND
The FY 2021-23 Budget was approved by Council on June 28, 2021. As we approached the second year of the two-year budget cycle (FY 2022-23), staff reviewed revenue and expenditure budgets to recommend revisions to the original budget. Staff recommends the Council conduct a public hearing to take public comment on the proposed revised budget and provide staff direction prior to the adoption of the FY 2022-23 budget scheduled for June 27, 2022.
The total proposed revised citywide budget for FY 2022-23 is $34.8 million, including $18.7 million in the City’s General Fund, $5.2 million in Enterprise Funds including Water and Wastewater Funds, and $1.8 million in Special Revenue Funds. The budget includes a five-year capital improvement program (CIP) of $9.2 million in funding in FY 2022-23 for key capital projects or 26% of the total proposed citywide budget. Highlights and major changes to the budget are identified in the City Manager’s Letter of Transmittal which is included in the first section of the Proposed Revised Budget document and information on the City’s revenues and expenditures is incorporated throughout the document.
General Fund Revenue
The original adopted budget for FY 2022-23 was reviewed and compared to FY 2021-22 estimated year-end projections, along with any updated projections from outside consultants. This includes the following significant revenue sources:
• Sales Tax projections were determined using the most recent report from the City’s sales tax consultant estimating an additional $250,000 in sales tax revenues for FY 2021-22 and an updated FY 2022-23 budget with a 4% increase of $354,000. • Property Tax projections for FY 2021-22 year-end are in line with the estimates provided by San Luis Obispo County Tax Assessor’s Office. The FY 2022-23 original budget assumed that the City’s property tax revenues would increase by 3% in FY 2022-23 from the current FY 2021-22. The most recent estimates provided in January 2022 by San Luis Obispo County Tax Assessor’s Office project a 4% increase for next fiscal year 2022-23 or an increase of $75,000 from the original FY 2022-23 budget.
Staff Report: FY 2022-23 Proposed Revised Budget Page 2 June 13, 2022
• Cannabis Tax projections for FY 2021-22 are estimated to be $1,600,000 or $848,000 lower than the $2,448,000 originally budgeted based on revenues received through the third quarter. The FY 2022-23 update amount is based on this $1,600,000 year-end estimate with a 2% increase or $1,632,000. This will decrease the original budget for FY 2022-23 by $816,000. These estimates represent resetting expectations for cannabis tax revenues given continued uncertainty in the cannabis industry as cannabis businesses begin operating in nearby cities and the industry in general continues to face significant pressure from an illegal market that is not taxed or regulated. • Transient Occupancy Tax (TOT) projections are based on the added short-term rental and increased travel activity that has picked up considerably in the current FY 2021-22 compared to the last two years that were impacted by the pandemic. The projections assume $850,000 for FY 2021-22 and $750,000 for FY 2022-23. FY 2021-22 included a one-time collection effort of $95,000 from prior years where some STRs were not paying required revenues in a timely manner. Staff has worked with these individuals to make sure they are staying current and is currently conducting a TOT audit for both hotels and STRs which has not been conducted since 2011.
General Fund Expense
For the FY 2022-23 revised proposed budget, there is an increase to salaries and benefits of $81,000 or a 1% increase from the FY 2022-23 original budget which was based on a 2% increase.
This revised budget is consistent with labor agreements with employee groups which includes a 3% cost of living adjustment for FY 2022-23. In addition, there is a 1.7% or $128,000 increase to the total FY 2022-23 supplies and services budget for the General Fund. The original budget was based on a 2% inflationary factor, although inflation rose to 7.5% in January 2022 but is forecast to come down to more normal levels over the coming fiscal year. The adjustment was needed to cover the inflationary increases of $59,000 including office supplies, fuel, vehicle maintenance and utility cost. Other large items that needed to be adjusted included $14,000 for computer replacements and $55,000 for police body cameras.
The revised budget for FY 2022-23 includes a General Fund contribution of $2.1 million to the capital improvement program (CIP). The original budget included $2.3 million to CIP, but the difference is due to projects with a modified scope or carryover amounts available from the prior year. The revised budget for FY 2022-23 represents a significant investment in City resources to implement Council Goals and address community needs while maintaining sufficient reserves.
The revised General Fund budget for FY 2022-23 is balanced with a projected surplus of $239,000 and ending reserves of approximately 40% of operating expenditures compared with the Council’s reserve goal of 25% to provide sufficient reserves for emergencies or unforeseen events or needs.
Staff recommends caution with these reserves given potential economic uncertainties in this next fiscal year along with significant improvements needed for parks and City facilities along with other City infrastructure. Staff will bring further information about these needs to the Council during this next fiscal year in preparation for the FY 2023-25 two-year budget.
American Rescue Plan Act of 2021
The City has been allocated a total of $3.2 million from the American Rescue Plan Act (ARPA) with the first disbursement of $1.6 million already received in FY 2021-22. The revised budget for FY 2022-23 includes the second disbursement of $1.6 million to be received in FY 2022-23. With the adoption of the original FY 2021-23 budget, Council provided direction to use City Council Goals as a roadmap in allocating ARPA funding with a particular focus on the following priorities:
Staff Report: FY 2022-23 Proposed Revised Budget Page 3 June 13, 2022
• Housing and homelessness
• Public safety needs
• Economic development and business/nonprofit assistance • Rental and utility assistance
• Unfunded water or sewer projects
This direction was incorporated into the FY 2021-23 budget adopted in June 2021 with ARPA funding allocated to five general categories shown below. Staff presented updated allocation recommendations for the five categories to the Council in September 2021 which Council concurred with:
• Homelessness services and facilities - $800,000
• Non-profit assistance - $150,000
• Rental and utility assistance -- $50,000
• Business assistance/economic development -- $300,000
• Water and sewer projects - $300,000
Staff is seeking further Council consideration of these or other potential uses of these one-time ARPA funds to incorporate as part of the FY 2022-23 revised budget. Staff recommends Council approve the general ARPA allocations in the chart below. These allocations include the second $1.6 million disbursement as well as approximately $500,000 in unexpended and uncommitted funding from this year’s initial disbursement. Staff would note that these allocation categories are now based on ARPA terminology consistent with updated guidance from the U.S. Treasury.
Category Total Allocation
Homelessness Services and Programs $1.3 million
Enhancing Government Services $432,000
Aid to Local Businesses/Support for Tourism $215,000
Assistance to Households $158,000
Assistance to Nonprofits $50,000
The largest allocation would be for homeless services and programs and include funding 5Cities Homeless Coalition operations at the future non-congregate shelter site on South 4th Street purchased for this purpose in March 2022 along with funding to support the winter warming center and other homeless programs. $432,000 is proposed for enhancement of governmental services by using ARPA funds to backfill revenue losses resulting from the COVID-19 pandemic. This backfill of revenues will allow the City to improve and enhance governmental services and allow the City to be more prepared for future events by partially funding a new Enterprise Resource Planning system for the City organization among other improvements. Staff is proposing an allocation of just over $215,000 to continue the City’s initiatives in supporting local businesses and enhancing tourism marketing for economic development. An allocation of over $158,000 would support childcare needs for providers and families and to continue the City’s utility assistance program. Finally, an allocation of $50,000 is recommended to fund the FY 2023-24 Community Grants program for non-profit agencies.
Staff would note that the ARPA funding of $1.6 million in the upcoming FY 2022-23 budget has been incorporated in the General Fund budget as both a grant revenue and non-departmental expenditure. As a result, Council direction on potential uses of ARPA funding will not change the actual budget but rather provide policy guidance to staff in developing and implementing the most appropriate uses of these one-time funds intended to help communities recover and rebuild from the COVID-19 pandemic. Upon policy direction from the Council, staff will report back to the Staff Report: FY 2022-23 Proposed Revised Budget Page 4 June 13, 2022
Council on expenditures and project approval items and continue to bring applicable agenda items related to implementation of ARPA funding to the Council at future meetings.
FISCAL IMPACT
There is no direct fiscal impact from this action. The FY 2022-23 Proposed Revised Budget contains comprehensive financial information at the fund level (Fund Information section) and departmental and program information (Department Budgets).
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a public hearing to review the FY 2022-23 Proposed Budget and provide direction to staff to finalize the budget for adoption on June 27, 2022; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. A public hearing notice was published in New Times on June 2, 2022 and posted accordingly in the locations for public notices.
Attachments
1. FY 2022-23 Proposed Revised Budget (Printed copies provided to City Council under separate cover). An electronic copy is available on the City website.
Revised Budget
Fiscal Year 2022-23
Grover Beach CITY OF
Attachment 1
Table of Contents
CITY OVERVIEW
City Manager’s Letter of Transmittal 6
City Council Goals 18
Major City Goals Work Programs 21
City Government 29
Profile of Grover Beach 31
FINANCIAL TRENDS
Financial Trends 34
Employer Pension Contribution Rates 41
BUDGET OVERVIEW
City Operating Budget 46
CIP Project Budget 53
Schedule of Interfund Transfers 54
Full Time Equivalents Personnel 56
DEPARTMENT BUDGETS
Administrative Services 62
City Manager’s Office 66
Community Development 70
Parks & Recreation 73
Police 76
Public Works 81
Non-Departmental 86
FUND INFORMATION
General Fund 90
Capital Projects Fund 93
Special Revenue Funds 94
Enterprise Funds 107
CAPITAL PROJECTS
Capital Improvement Program 112
APPENDIX
Financial Policies 118
Gann Appropriation Limit 124
CITY
OVERVIEW
City Overview
6 CITY MANAGER’S LETTER OF TRANSMITTAL
Honorable Mayor and Council Members:
I am pleased to present the total revised budget of $34.8 million for the City of Grover Beach for the upcoming fiscal year 2022-23 including a General Fund budget of $18.7 million. FY 2022-23 represents the second year of our two-year budget cycle and the budget for FY 2022-23 reflects revisions from the twoyear FY 2021-23 budget adopted in June 2021. As we close our current fiscal year 2021-22, I’d like to take a moment to recognize the challenges we have faced in this past year along with our substantial progress and accomplishments in addressing community needs and implementing the Council’s policy direction.
Over the past year, our world continued to endure the COVID-19 pandemic which was the most significant public health crisis since the influenza pandemic over a century ago. The COVID-19 pandemic began in March 2020 with unprecedented “stay at home” orders in California and elsewhere to slow the spread of the pandemic which was beginning to spread throughout the world. These orders made a significant public health impact in slowing the spread but caused significant societal and economic impacts in keeping residents at home except for going to essential businesses such as grocery stores or pharmacies and working in essential services. These impacts affected children of our community as well given the change to distance learning at home which required many parents to work at home while helping their children with school. The City of Grover Beach also pivoted in March 2020 to focus our service delivery on essential services while transitioning our employees to work remotely in the interest of public health and safety while continuing to provide services to the best of our ability.
When this fiscal year began in July 2021, pandemic conditions had changed dramatically from 2020 as case numbers and hospitalizations had decreased considerably from a peak in January 2021 with 3,500 active cases in San Luis Obispo County with nearly 50 hospitalizations. The availability of a vaccine along with compliance with public health guidance enabled our community to return to more normal activities including outdoor events like our Summer Concert Series. However, new highly transmissive strains of the COVID virus including the Delta variant in fall 2021 and Omicron variant in winter 2022 caused case numbers and hospitalizations to increase again and led to an all-time high of 649 in the 14-day average number of new cases in January. But the Grover Beach community persevered once again and when COVID numbers subsequently dropped rapidly, restrictions and limitations were lifted in February including the indoor mask mandate and normal business activities and events resumed in our community. The City had previously reopened the City Hall front lobby to in-person transactions in summer 2021 and subsequently resumed City Overview
7 in-person City Council and Commission meetings in March. The City organization is still working with a flexible work environment that allows most employees to work remotely for part of the week which not only addresses continued challenges with childcare provision, but also reflects changing workforce interests in seeking flexibility in schedules and workspaces.
Over the past year, the City has continued to be a leader in supporting local businesses during difficult times in partnership with the South County Chambers of Commerce. Building on the business microgrant assistance program that provided over $700,000 in grants to 92 businesses, the City completed a “Buy Local” program in July 2021 to encourage spending at local businesses. This program generated $278,000 in funding for local businesses from February through July 2021 with nearly $4 in customer spending for every $1 in public funds invested. The City worked with the Chamber to carry out a second iteration of the Buy Local program in February 2022 to continue this local support. Through our partnership with the Chamber, the City has strengthened its ties to the business community and is widely seen as a community that cares deeply about its local businesses and their owners and employees.
Despite the challenging and ever-changing conditions this past year, the City of Grover Beach has made significant strides in building an even stronger and better community in alignment with Council Goals.
Approximately 90% of the tasks identified for FY 2021-22 Major City Goals at mid-year were completed or in progress. Streets continue to be repaired throughout the city as we have improved over 60% of local streets (259 blocks) through Measure K-14 bond funding approved by voters in 2014 and completed the South Oak Park Boulevard rehabilitation project in March. We have continued to install new water and sewer lines, sidewalks, bike lanes and ADA accessible corner ramps to continue improving infrastructure in our community. The Council opened a new playground at 16th Street Park in August and approved a pilot program in February to co-locate pickleball courts at the Mentone Park tennis court. Economic development continues to be one of the City’s top goals and in addition to the business support mentioned earlier, the City continued its partnership with the South County Chambers of Commerce on economic development services including business attraction and retention. The City also added a Deputy City Manager position whose job responsibilities include economic development initiatives. The hotel project located at 950 El Camino Real is in building plan review with groundbreaking slated to occur in late 2022.
The developer of the Grover Beach Lodge also continues their work to prepare construction plans for submission to State Parks and the developer of the hotel project at 1598 El Camino Real is working on their construction plans for submission to the City.
City Overview
8 With regards to housing, the City has worked diligently this year on updating our Development Code and Land Use Element to implement the updated Housing Element approved in 2020 and to enhance housing production in Grover Beach. These updates have been a substantial work effort with extensive public input and review by the Council and Planning Commission with final approval anticipated in June. The City’s commitment to affordable housing was illustrated this fiscal year through approval of a development application for a 53-unit affordable housing project on vacant City-owned and private property near the corner of South 13th Street and West Grand Avenue. Addressing homelessness is also a top priority for the City with substantial progress this year on creating additional shelter space for unhoused individuals along with cleaning encampment areas and removing trash and debris. Lastly, public safety is a core responsibility of local government and we have made significant strides this past year in filling vacant positions for Police Officers and a Police Commander, upgrading and expanding our Community Camera Program, and continuing our investment in a well-maintained and equipped fire and emergency medical service.
In addition to these achievements, the City has worked hard at building a strong financial foundation over this past year despite the challenges posed by COVID-19. The City’s revenues continue to be strong overall particularly with sales tax, property tax, and transient occupancy tax the latter of which has doubled to $850,000 this fiscal year. For the second year in a row, sales tax is projected to be the City’s highest revenue source due in large part to passage of the Measure F-20 1% sales tax in November 2020. Cannabis revenues have decreased given continued uncertainty in the cannabis industry from State regulation and taxation and extent of illegal cannabis businesses and are projected to be approximately $800,000 lower than expected. However, this tax will still produce $1.6 million in general revenue to support City projects and services and is generated through 13 current commercial cannabis businesses operating in a safe and responsible way. The City’s revenues coupled with the strong fiscal management of City departments are projected to produce a year-end General Fund surplus of approximately $600,000 with ending reserves totaling $5.7 million or 39% of operating expenditures. This level of reserves is higher than the Council’s policy goal of 25% of operating expenditures and provide sufficient reserves for emergencies or unforeseen needs given continued uncertainty in the economy. As we complete this fiscal year, revenues continue to be strong given the strength of the local housing market and level of local and visitor spending at local businesses including cannabis businesses and position the City to make significant investments in this upcoming budget. This positive financial outlook is augmented by the second and final year of receiving federal funding through the American Rescue Plan Act (ARPA) to further assist our community in recovering from the COVID-19 pandemic.
City Overview
9 City Council Goals
Since 2017, the City Council has conducted an annual goal-setting process to determine the highest priorities for the City organization to implement in the upcoming fiscal year. On March 8, 2021, the Council adopted a set of Council Goals for FY 2021-23, following a goal-setting workshop on February 26, 2021. On March 7, 2022, the Council held another Council Goals workshop at which staff provided highlights from the updated long-term financial forecast, implementation of Council Goals, and input on potential goals from the community through an online survey and virtual forum. The Council was asked for input and direction regarding two questions: 1) Are there any changes that Council would like to make to the current goals?; and 2) Are there any key items to particularly focus on in FY 2022-23 in implementing Council Goals? After consideration of public comment and deliberation, the Council directed staff to add Water Resiliency as an “Other Important Goal”; revise the existing Environmental Sustainability “Address as Resources Permit” Goal to remove the Central Coast Blue project; and to move the Pedestrian, Bicycle and Traffic Safety Goal from “Other Important Goals” to the “Address as Resources Permit” category. On March 14, 2022, the Council adopted a highly focused set of collective goals organized into three priority categories:
• Major City Goals. These represent the most important, highest priority goals for the City to accomplish over the next two years, and as such, resources to achieve them should be included in the FY 2021-23 budget.
o Economic Development
o Housing and Homelessness
o Public Safety
o Street Improvements
• Other Important Goals. These goals are important for the City to accomplish and resources to achieve them should be made available in the FY 2021-23 budget where feasible. o Building and Facility Improvements
o City Beautification and Public Art
o Community Engagement
o Water Resiliency
• Address as Resources Permit. While it is desirable to achieve these goals, doing so over the next two years is subject to resource availability.
o Environmental Sustainability
o Code Compliance
o Pedestrian and Bicycle Safety
o Recreation and Community Programs
City Overview
10 In staff’s perspective, these updated Council Goals represent an affirmation and “fine tuning” of the earlier Council Goals to reflect current and future conditions such as greater focus on water resiliency and the Central Coast Blue project as a Council priority. The Council is to be commended for its continued strategic focus on key priority areas to drive City resources and investments to best address community needs.
Building on the Council’s updated goals for FY 2022-23, staff has developed work programs for each of the four Major City Goals to specify what will be done over the next year in carrying out the goal. Adoption of the revised FY 2022-23 budget will serve as the approval of these work programs which staff will begin implementing in the new fiscal year and providing progress reports to Council throughout the year.
FY 2022-23 Budget Overview
The revised budget for fiscal year 2022-23 reflects the continued strength of the local economy emerging from the COVID-19 pandemic with a positive economic outlook given the extent of fiscal stimulus funding and level of pent-up consumer demand. The revised budget for the second year of the two-year budget cycle is balanced with significant community investments made possible by projected General Fund revenues as highlighted below:
• Sales Tax (the largest revenue source over the next year at 32%) projection includes $2.3 million in FY 2022-23 from Measure F-20 approved by voters in November 2020. The revised FY 2022-23 budget assumes a 4% increase in FY 2022-23. These estimates were determined with the assistance of the City’s sales tax consultant using historical data and trend analysis and an additional $354,000 was added to the revised budget for FY 2022-23. • Property Tax (the second largest revenue source at 29%) projection is in line with the estimates provided by San Luis Obispo County Tax Assessor’s Office in January 2022. The revised FY 2022- 23 budget assumes that the City’s property tax revenues will increase by 4% in FY 2022-23 from FY 2021-22 and the revised budget adds an additional $75,000 based on the most current estimate. • Cannabis Tax (the third largest revenue source at 9%) projection was initially assumed at $2.4 million including a 2% annual inflationary increase in FY 2022-23. However, based on FY 2021-22 actual revenue through the third quarter, cannabis tax revenues have decreased and are expected to end the year $800,000 below the initial projection. This decrease in revenue is a reset of expectations for cannabis tax revenues and a recognition of continued uncertainty in the cannabis industry which continues to face significant pressure from an illegal market that is not taxed or regulated.
Due to the current trends and actual revenue collected for FY 2021-22, FY 2022-23 revised numbers have been reduced by $816,000 to approximately $1.6 million.
City Overview
11 • Transient Occupancy Tax (the fourth largest revenue source at 4%) projections are based on the added short-term rentals (STRs) and increased travel activity that has picked up considerably in FY 2021-22 compared to the last two years that were impacted by the pandemic. The projections assume $850,000 for FY 2021-22 and $750,000 for FY 2022-23. FY 2021-22 included a one-time collection effort of $95,000 from prior years where some permitted STRs were not paying required revenues in a timely manner. Staff has worked with these STR permit holders to make sure they are staying current.
• Franchise Fees (the fifth largest revenue source at 3%) projection includes the new fiber optic cable which will add an additional $100,000 to FY 2022-23. This new revenue was delayed and not collected in FY 2021-22 but expected to be received in FY 2022-23, therefore no adjustment was needed to the revised budget.
In terms of expenditures, the revised budget for FY 2022-23 continues to make significant investments in addressing community needs in alignment with the Council Goals. The budget includes a General Fund contribution of $2.3 million in FY 2022-23 for the City’s Capital Improvement Program (CIP) as presented to the Council on March 28, 2022. The Council provided direction to incorporate these amounts into the final CIP included with the adopted budget which will enable the City to carry out additional capital projects along with funding from Measure K-14 street bonds, Water and Wastewater Enterprise Funds, and other funds. The CIP also includes funding from the Water Fund for the City’s share of costs for the Central Coast Blue regional recycled water project to provide sustainable water supplies for years to come. The adopted budget includes General Fund operating budget recommendations of $950,000 in net expenses after revenue offsets for FY 2022-23 compared with the budget in FY 2020-21 including six new positions that were added in FY 2021-22. These funds are proposed to be allocated with a continued focus on helping our community recover and rebuild from the impacts of COVID-19 with low-income utility assistance, economic development and business assistance, and homelessness services and facilities.
Below is a summary of notable items included in the adopted budgets over the next fiscal year listed by each of the four Major City Goals:
Economic Development
• Business Retention and Attraction. The revised budget for FY 2022-23 includes $70,000 in contract funding with the South County Chambers of Commerce to continue to provide economic development services including business retention, business attraction, tourism marketing, and workforce development services. This partnership which started in January 2020 has been City Overview
12 beneficial for the City in working with the leading business organization in our region to help promote and expand our economic vitality. The FY 2022-23 budget also includes ongoing General Fund funding for a new Deputy City Manager position in the City Manager’s Office to provide an additional resource for economic development activities. Additionally, the budget for FY 2022-23 includes additional funding for community, childcare, and business assistance grants to continue the City’s response to the COVID-19 pandemic.
• Tourism development. While not a specific budget item, staff will begin oversight and construction management for a permitted hotel project at 950 El Camino Real and will continue to invest time to support the permitting process related to an approved hotel project at 1598 El Camino Real as well as the Grover Beach Lodge project with the lodge permitting process led by State Parks given its location at Pismo State Beach. These projects will add approximately 400 new rooms to the city.
The Council previously approved limited funding support for the 1598 El Camino Real project consistent with the City’s policy on providing financial assistance for catalyst economic development projects. The City does not include the projected revenues from hotel developments in financial forecasts until construction begins. Lastly, the City will work with the Chamber to enhance Visit Grover Beach tourism marketing over the next year to promote Grover Beach as a desirable coastal destination. Visit Grover Beach was recognized as one of the top tourism marketing brands in California in 2021 by Visit California. • Commercial cannabis regulatory costs. Approximately $400,000 in ongoing costs in the Community Development, Police, and other departments is recommended in FY 2022-23 to provide staff capacity and resources to effectively regulate the growing commercial cannabis industry in Grover Beach as part of our economic development work. With 14 businesses currently operating and several others expected to be operating in the next fiscal year, the City will continue to carry out needed activities to help ensure a safe and regulated commercial cannabis industry with these regulatory costs covered by commercial cannabis permit revenue. • West Grand Avenue Improvements. The FY 2022-23 budget includes $2.4 million in General Fund dollars for a street repair and streetscape improvement project on West Grand Avenue between 4th and 8th Streets. Additionally, staff will use the budgeted contract with the South County Chambers of Commerce to provide outreach and marketing to businesses along West Grand Avenue to enhance economic vitality of the corridor.
City Overview
13 Housing and Homelessness
• Development Code update implementation. A key focus of the work program for the Housing and Homelessness Major City Goal is implementing the Development Code and Land Use Element updates anticipated to be approved in June and processing related development applications particularly for West Grand Avenue projects such as a mixed-use project at 402 West Grand Avenue.
This implementation work includes obtaining Coastal Commission approval of the Local Coastal Program amendments related to the updates, development of applicant checklists, updating the City’s website with new materials and documents, training staff, and conducting developer outreach.
• Affordable housing development. An important aspect of this work program is advancing an affordable housing project on City-owned land on South 13th Street near West Grand Avenue. This property was deeded to the City in 1990 for a park use and the City spent considerable effort in seeking outside grant funding to develop a park or community center. The City worked with the trustee of the deed to support using this property for affordable housing to address housing needs within the community and help meet the City’s Regional Housing Needs Assessment requirements for low and very-low-income units. The Council previously selected People’s Self-Help Housing (PSHH)/Housing Authority of San Luis Obispo County (HASLO) as the developer and approved the development application for the site in December 2021. Staff will oversee the start of the building permit process with PSHH/HASLO as this project comes forward to the City. • Homelessness support. The City will continue its efforts to partner with the 5Cities Homeless Coalition (5CHC), the County of San Luis Obispo, and other agencies and stakeholders on addressing homelessness in our community. In recent years, the City has secured over $1,000,000 in Community Development Block Grant (CDBG) funding for Eviction Prevention and Security Deposit programs administered by 5CHC to prevent homelessness in our community and an additional $450,000 in additional CDBG funding from the federal CARES Act to support the South County winter warming center and provide assistance to homeless individuals including mental health services. In FY 2021-22, the Council approved the purchase of property on South 4th Street using funds from the City’s ARPA allocation and staff is working on a land lease with 5CHC to develop a homeless housing facility. The City will continue to partner with 5CHC and other local agencies on efforts to address homelessness in South County including exploring temporary or permanent shelter spaces to help unhoused individuals find housing and connect to services. In addition to creating shelter space, the City will continue to pursue encampment cleaning and trash removal work along with outreach at affected locations such as the El Camino Real area.
City Overview
14 Public Safety
• Fire and emergency medical services. The work program for fiscal year 2022-23 includes continuing the implementation of the amended Joint Powers Authority (JPA) agreement for the Five Cities Fire Authority (FCFA) approved in June 2020 that adjusted the level of service and cost allocation for member agencies for a two-year period based on the 2019 revised funding formula. This two-year window is tied to re-consideration of a tax measure in Oceano in June 2022 to fund fire services following the narrow defeat of a previous measure in 2020. The results of this election will factor prominently in work among FCFA member agencies on the future service delivery and governance structure of fire and emergency medical services. Lastly, the City is also committed along with other member agencies to fund the replacement of the wildland fire vehicle beginning in FY 2022-23. • Police improvements and needs. The revised budget for FY 2022-23 continues the additional funding for the Police Department that began in FY 2021-22 to address community safety needs including the addition of two Police Officer positions and a Community Services Technician positions. The FY 2022-23 budget includes an update to the City’s Emergency Operations Plans and implementing staff and Council training and collaboration with other agencies on emergency preparedness and response.
Street Improvements
• Measure K-14 street projects. The FY 2022-23 budget includes $3.4 million in Measure K-14 funding to carry out two street projects totaling 35 blocks on numerous streets. The first project (CIP 2295- 14) is a 16-block section of streets that includes portions of Trouville, S. 7th Street, Ocean View, Nacimiento, Mono, Owens, Margarita and Angello Terrace. The second project (CIP 2295-15) is a 19- block project that includes portions of S. 7th Street, S. 10th Street, Manhattan Avenue, Seabright Avenue, Charles Street, N. 2nd Street and N. 6th Street. The first project is due to begin construction in August and the second is due to begin construction in February 2023. • Improvements to major streets. The revised budget for FY 2022-23 includes $2.4 million for completing design and beginning construction of the West Grand Avenue Streetscape project from 4th Street to 8th Street. This project follows this year’s completion of the South Oak Park Boulevard street improvement project which was the City’s first major streets project in many years. Staff will continue to advance major streets projects as funding and workload allows in addition to Measure K-14 street projects and other infrastructure improvements. The five-year Capital Improvement Program identifies the annual investment the City is making in improving these major streets traveled upon by residents, businesses, and visitors.
City Overview
15 • Sidewalk improvements. Sidewalk repairs and infill is also funded in this adopted budget to improve pedestrian accessibility in our community. The budget includes $50,000 in new funding in FY 2022- 23 for constructing infill sidewalks through private-public partnerships in conjunction with the Measure K-14 street projects CIP 2295-14 and 2295-15.
Overall, the revised General Fund budget for FY 2022-23 will be balanced with revenues of $18.9 million and expenditures of $18.7 million for a surplus of approximately $249,000 and ending reserves of approximately 40% of operating expenditures in FY 2022-23 compared with the Council’s reserve goal of 25%. This level of reserves reflects the City’s cautious financial management and provides sufficient reserves for emergencies or unforeseen needs given economic uncertainties. Anticipated budget surpluses in future years are projected to add to these reserves over time.
Table 1 -- Updated General Fund Projections
As expressed throughout this letter, the revised budget for FY 2022-23 represents a significant investment in City resources to implement Council Goals and address community needs while maintaining sufficient reserves. The community’s investment as expressed through passage of Measure F-20 in November 2020 and the Council’s leadership in establishing the commercial cannabis industry to create jobs and generate tax revenue have positioned the City to carry out an extensive list of improvements that support and enhance the quality of life in our community. This is a positive financial position for the City to be in while continuing to demonstrate fiscal discipline and prudent cost management. There continue to be uncertainties and challenges facing the City described below including the overall economic environment, continued uncertainties with cannabis revenue, and fostering a continued sense of community in a time of change and uncertainty.
FY 2020-21
Actual
FY 2021-22
Original
FY 2021-22
Estimated
FY 2022-23
Budget
FY 2022-23
Update
FY 2022-23
Revised
Beginning Reserves $ 4,704,830 $ 5,344,745 $ 5,073,745 $ 5,564,926 $ 5,564,926 REVENUES:
Revenues/Transfers In 14,801,082 19,228,267 18,833,127 19,123,083 (174,500) 18,948,583 EXPENDITURES:
Operating Expenditures 13,534,588 16,677,294 16,417,516 15,998,524 209,000 16,207,524 Debt Service 154,620 205,828 205,828 181,425 181,425
CIP/Transfers Out 329,959 2,301,750 1,576,602 2,455,600 (145,000) 2,310,600 TOTAL EXPENDITURES 14,019,167 19,184,872 18,199,946 18,635,549 64,000 18,699,549 ANNUAL SURPLUS (GAP) $781,915 $43,395 $633,181 $487,534 ($238,500) $249,034 Ending Reserves $ 5,486,745 $ 5,388,140 $ 5,706,926 $ 6,052,460 $ 5,813,960 Percent of Operating Expenditures 41% 36% 39% 43% 40%
City Overview
16 Overall Economic Environment
The City’s budget has recovered well from the economic impacts of the COVID-19 pandemic and the City did not experience a significant degree of revenue loss during the pandemic given our residential property tax base and the diversification of the City’s revenue sources. The City also experienced a sizeable influx of tourists to Grover Beach along with other coastal communities which led to the City’s highest level of transient occupancy tax revenue received in FY 2021-22. The generally positive economic conditions and the degree of fiscal stimulus in the economy such as ARPA funds will position the City and other communities to use public funding to make significant improvements to quality of life. However, there are significant regional economic changes on the horizon that we must plan for including the pending closure of the Diablo Canyon Power Plant, Phillips 66 refinery, and off-highway vehicle usage at the Oceano Dunes State Vehicular Recreation Area. There are also numerous economic uncertainties to navigate such as global economic impacts from the war in Ukraine and the continued high rate of inflation that affects the cost of living along with supplies and equipment. We also need to be mindful that some members of our community are still struggling given the depth of specific economic impacts in certain industries and may need financial assistance for housing, utilities, transportation, childcare, and other needs. The City has demonstrated a high degree of empathy and support for community members and this effort is important to continue in our recovery from the pandemic and economic impacts.
Continued Uncertainties with Commercial Cannabis Revenue This is a continued area of uncertainty for the City given the nature of the commercial cannabis industry as it continues to transition to a fully legal and stable industry statewide. The City’s relatively stable financial outlook is due in part to the revenues from the commercial cannabis industry along with inherent stability in one of the City’s largest revenue sources (property tax revenues). The commercial cannabis tax is expected to generate $1.6 million in revenues in FY 2022-23 and cannabis-related sales tax revenues also contribute to the City’s financial position. Grover Beach is a leader in establishing a successful commercial cannabis industry and the annual tax revenues continue to outperform initial estimates prior to establishing the industry. However, there are numerous uncertainties with these revenues given the tenuous nature of the legal cannabis industry and market implications with nearby cities establishing cannabis businesses which point to the need to consider opportunities such as onsite consumption lounges. The City continues to take a cautious approach with the use of additional general revenues largely generated from cannabis taxes with these funds primarily used for one-time needs such as capital projects rather than ongoing programs or services.
City Overview
17 Fostering a Sense of Community in a Time of Change and Uncertainty Lastly, this past year has continued to be extraordinary and unprecedented as we have endured a global pandemic, uncertainty economic conditions, and political and societal divisions. This period of time has exposed divisions in our country that are deep-seated and will take time and effort to overcome as a society.
I am proud that Grover Beach has remained a strong and vibrant community that has supported each other and modeled civility and respect as exemplified by the actions and conduct of your City Council. It is imperative for all of us who are part of this great city to continue fostering a continued sense of community to build an even stronger Grover Beach and deepen the level of confidence in local democracy, governance, and civic leadership. This will be particularly important given the upcoming transition to district-based elections for City Council beginning this November to retain a focus on citywide priorities while enhancing accessibility to public office.
Conclusion
Grover Beach is a vibrant, resilient, and caring community. The COVID-19 pandemic was a once-in-ageneration crisis that we all experienced and through these difficult times, our community has supported one another while demonstrating the “can do” spirit that exemplifies the city. Grover Beach also does not shy away from bold ideas and uncharted waters but rather embraces opportunities that can lead to a better community and improved quality of life. The revised budget for FY 2022-23 embodies this sense of opportunity and investment to help our community continue to flourish and prosper as a beautiful community on the Central Coast to live, work, and play. I would like to recognize the outstanding work of our City staff in putting the revised FY 2022-23 budget together particularly our Administrative Services Director Deanne Purcell. We will continue to address challenges and pursue opportunities with the City Council’s leadership and City staff’s execution and work with our community to create an even stronger Grover Beach for years to come.
Respectfully submitted,
Matthew Bronson
City Manager
City Overview
18 CITY COUNCIL GOALS
MAJOR CITY GOALS
Economic Development
Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.
Housing and Homelessness
Update City codes and standards to encourage housing construction to meet diverse needs; collaborate with developers and non-profits in efforts to increase overall housing stock with a priority on affordable City Overview
19 housing availability; and partner with regional agencies and organizations to address homelessness and sheltering issues in the city and region.
Public Safety
Champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.
Street Improvements
Continue improvements to major arterials and local streets, incorporating where feasible related improvements, such as utility upgrades and “complete streets” - medians, sidewalks, bicycle lanes, bulbouts, street trees and other related improvements.
OTHER IMPORTANT GOALS
Building and Facility Improvements
Provide for improvements and enhancements to City buildings, parks, and other facilities through a condition assessment, including disability access needs, followed by a funding and implementation plan to ensure that these public assets meet current and future needs; identify and plan for added facilities where our existing inventory falls short.
City Beautification and Public Art
Enhance the appearance of the City by improving major entryways, ensuring high signage standards, preserving “legacy trees” and partnering with the community to pursue new public art projects, such as murals.
Community Engagement
Continue a strong commitment to transparency and public participation in City government through programs, initiatives, and event to encourage citizen engagement in key community decisions; and formalize our practices by adopting a public participation plan and policy.
Water Resiliency
Partner with communities throughout the South County to achieve sustainable water resources through initiatives such as the Central Coast Blue recycled water project and other opportunities, as well as through water conservation efforts.
City Overview
20 ADDRESS AS RESOURCES PERMIT
Code Compliance
Continue to strengthen the code compliance program and related code sections to be more proactive in inspecting and addressing such issues as short-term rental violations, illegal advertising/business signage, overgrown landscaping, and conflicting right-of-way encroachments; continue monitoring the cannabis industry.
Environmental Sustainability
Integrate environmentally sustainable principles, practices and projects into City operations and new development plans and standards; increase resource conservation and reduce carbon emissions through initiatives such as Central Coast Community Energy and other technology opportunities to address and off-set climate impacts.
Pedestrian, Bicycle and Traffic Safety
Continue efforts to make Grover Beach a more pedestrian and bicycle friendly community by adding and/or enhancing bicycle lanes, sidewalks, streetlights, street and crosswalk striping and enhancements, and other traffic calming and safety measures.
Recreation and Community Programs
Provide viable recreation, youth, childcare, and special event programs designed to meet current and emerging needs, both directly and in partnership with other providers.
City Overview
21 MAJOR CITY GOALS WORK PROGRAMS
ECONOMIC DEVELOPMENT
Goal Statement
Develop and implement economic development initiatives that include COVID-related economic recovery strategies, business retention and attraction, effective and timely permit processing, and tourism promotion including marketing, attracting hotels along Grand Avenue, and ensuring compatible beach uses.
STAFF LEAD: Matthew Bronson, City Manager; Kristin Eriksson, Deputy City Manager; Bruce Buckingham, Community Development Director
TASK DATE
Business Retention and Attraction
1. Work with Chamber to enable businesses to improve their marketing through digital marketing bootcamps in partnership with SLO Partners
2. Work with Chamber to conduct outreach with local businesses on key issues facing Grover Beach businesses including periodic meetings and surveys
3. Continue to collaborate with regional partner agencies to identify economic development strategies to support regional economy
4. Work with Digital West to promote citywide broadband expansion as part of Digital West implementation
Tourism Development
1. Begin oversight and construction management for hotel site at 950 El Camino Real
2. Process building permits for 1598 El Camino Real hotel project upon submittal by developer
3. Continue involvement in Grover Beach Lodge project in conjunction with lead agency State Parks and issue City permits for initial offsite construction upon plan submittal and approval
4. Work with Chamber to enhance tourism marketing efforts to promote Grover Beach as a desirable coastal destination for a variety of beach uses
June 2023
July 2022
July 2022
September 2022
January 2023
January 2023
July 2022
July 2022
City Overview
22 Commercial Cannabis Activities
1. Process additional development applications for commercial cannabis businesses
2. Process onsite consumption area applications upon submittal by retailers pending adoption of ordinance allow use
West Grand Avenue Improvements
1. Process development applications for West Grand Avenue housing and mixed-use projects upon submittal by property owners
2. Pursue streetscape and other infrastructure improvements to improve the appearance and functionality of the commercial corridor
3. Work with Chamber and businesses along West Grand Avenue on outreach and marketing to enhance economic vitality of the corridor
July 2022
July 2022
July 2022
July 2022
July 2022
Key Policy/Operational Issues
• Continuation of economic development services contract with the South County Chambers of Commerce to improve business retention, recruitment, and marketing • Continued focus on commercial cannabis industry and hotel development projects given economic activity and development opportunities along with additional tax revenues • Continue working with Digital West to maximize potential of citywide fiber broadband expansion for attraction of businesses and residents
• Continue City’s involvement in regional economic development strategies to ensure community economic vitality in the future
• Provide greater focus on West Grand Avenue improvements given the level of development interest in housing and mixed-use projects
Financial Resources Required
Economic development contractual services $ 70,000
Total $ 70,000
General Fund - ARPA $ 70,000
Total $ 70,000
FY 2022-23 Cost Summary
FY 2022-23 Funding Sources
City Overview
23 HOUSING AND HOMELESSNESS
Goal Statement
Collaborate with developers and non-profits in efforts to increase housing availability particularly affordable housing units and partner with regional agencies and organizations to address homelessness challenges in the city and region.
STAFF LEAD: Bruce Buckingham, Community Development Director; Matthew Bronson, City Manager
TASK DATE
1. Process development applications for West Grand Avenue housing and mixed-use projects upon submittal by property owners.
2. Oversee the start of the building permit process for the development of affordable housing project on South 13th Street (Cleaver property)
3. Work with 5Cities Homeless Coalition (5CHC), on the development of a homeless housing facility on City-owned property on South 4th Street
4. Continue to work with 5CHC and surrounding cities to increase the supply of supportive and transitional housing and programs to assist the homeless
5. Continue periodic homeless encampment outreach and cleaning activities at affected locations
6. Receive Coastal Commission approval of the Local Coastal Program amendments related to the Land Use Element and Development Code updates
7. Implement Development Code and Land Use Element including development of checklists, website update, staff training and developer outreach
8. Apply for “Pro-Housing Designation” from the State Department of Housing and Development to assist with securing State grant assistance
July 2022
July 2022
July 2022
July 2022
July 2022
October 2022
October 2022
June 2023
Key Policy/Operational Issues
• Housing availability is a significant challenge throughout the region and the City has limitations in responding to this need given staffing and funding, as well as the extent to which local government can address the housing market. Changes in housing will take time given the work involved in private sector housing production along with the development of the People’s Self-Help Housing/HASLO affordable housing project on South 13th Street.
City Overview
24 • Homelessness is one of the most difficult issues facing local government and is an issue that extends beyond the role of cities in addressing it. However, additional funding and City and County focus on homelessness initiatives could lead to tangible results despite difficulty with the complexity and regional nature of this issue.
Financial Resources Required
Homeless Support Services $ 400,000
Total $ 400,000
General Fund - ARPA $ 400,000
Total $ 400,000
FY 2022-23 Cost Summary
FY 2022-23 Funding Sources
City Overview
25 PUBLIC SAFETY
Goal Statement
Champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.
STAFF LEAD: John Peters, Chief of Police; Stephen Lieberman, Five Cities Fire Chief
TASK DATE
1. Continue exploration of more unified approach between public safety departments, County agencies, and homeless service providers on outreach for homeless individuals with mental health issues
2. Work with Five Cities Fire Authority member agencies on future service delivery and governance structure for fire and emergency medical services to implement beginning July 1, 2023
3. Expand the Police Department Community Services Technician program through vacant position reclassification to enhance use of non-sworn personnel on certain tasks
4. Enhance the City’s emergency management efforts through updating the City’s Emergency Operations Plans, implementing staff and Council training and collaborating with other agencies on emergency preparedness and response
July 2022
July 2022
October 2022
December 2022
Key Policy/Operational Issues
• Importance of working with member communities for long-term planning related to the Five Cities Fire Authority and the future service delivery needs and governance structure. • Need for coordination with other agencies on outreach services to those individuals with mental health issues and homelessness.
• Need to bolster citywide emergency management and preparedness work. • Finding opportunities to expand Police Department services within existing budget allocation.
City Overview
26 Financial Resources Required
STREET IMPROVEMENTS
Goal Statement
Continue improvements to major arterials and local streets, incorporating where feasible related improvements, such as utility upgrades and “complete streets” - medians, sidewalks, bicycle lanes, bulbouts, street trees and other related improvements.
STAFF LEAD: Greg Ray, Public Works Director/City Engineer; Erin Wiggin, Capital Improvement Program Project Manager; Gabriel Munoz-Morris, Senior Engineer
TASK DATE
1. Complete application package to PG&E for the Street Lighting Project (CIP 2003 with a first phase for North Oak Park Boulevard.
2. Complete construction of the sidewalk infill with the cost sharing program with the two Measure K-14 projects (CIP 2295-14 and 2295-15) listed below (CIP 2274).
3. Complete design and begin construction of the West Grand Avenue Streetscape project from 4th to 8th Streets (CIP 2287)
4. Complete design and begin construction of CIP 2295-14 (portions of Trouville, S. 7th St., Ocean View, Nacimiento, Mono, Owens, Margarita and Angello Terrace)
5. Complete design and begin construction of CIP 2295-15 (portions of S. 7th St., S. 10th St., Manhattan Avenue, Seabright Avenue, Charles Street, N. 2nd St. And N. 6th St.)
July 2022
June 2023
January 2023
August 2022
February 2023
Emergency Operations Plans Update and Training $ 50,000 Total $ 50,000
General Fund - NPP $ 50,000
Total $ 50,000
FY 2022-23 Cost Summary
City Overview
27 Key Policy/Operational Issues
• Continuing to achieve accelerated pace of projects within the City’s relatively small footprint of approximately two square miles without significant inconvenience to residents and with limited field staff available to provide project utility support.
• Improved funding availability for improving arterials and major streets given higher General Fund contribution for capital projects and increase in Local Transportation Funds derived from Gas Taxes though additional funding is still needed given the extent of arterials and major streets that need repair.
• Incorporating sidewalk infill, traffic calming, and other safety enhancements desired with street improvement work.
• Need to continue planning for street maintenance work in future Capital Improvement Programs to maintain the City’s streets rehabilitated in recent years.
Financial Resources Required
CIP 2003 (carryover from FY 2021-22) $ 100,000
CIP 2274 50,000
CIP 2287 1,874,000
CIP 2295-14 2,630,000
CIP 2295-15 750,000
Total $ 5,404,000
01 General Fund $ 1,475,000
17 Gas Tax Fund 150,000
18 Local Transportation Fund 100,000
19 Gas Tax Fund (RMRA) 299,000
20 Street Rehab Bond Fund (K-14) 3,300,000
80 Wastewater Fund 40,000
81 Water Fund 40,000
Total $ 5,404,000
FY 2022-23 Cost Summary
FY 2022-23 Funding Sources
City Overview
28 CITY COUNCIL
Jeff
Lee
Mayor
Karen
Bright
Mayor Pro Tem
Anna
Miller
Council
Member
Robert
Robert
Council
Member
Daniel
Rushing
Council
Member
City Overview
29 EXECUTIVE MANAGEMENT
Matthew
Bronson
City Manager
David
Hale
City Attorney
John
Peters
Chief of
Police
Deanne
Purcell
Administrative
Services
Director
Bruce
Buckingham
Community
Development
Director
Kathy
Petker
Parks and
Recreation
Director
Greg
Ray
Public Works
Director/City
Engineer
City Overview
30 PROFILE OF GROVER BEACH
Location
The City of Grover Beach is located in the southern part of San Luis Obispo County on California’s Central Coast. Grover Beach is bordered by Pismo Beach to the north, Arroyo Grande to the east, unincorporated Oceano to the south, and the Pacific Ocean to the west. The city is adjacent to Pismo State Beach and serves as the northern entry point to the Oceano Dunes State Vehicular Recreation Area. The city covers an area of 2.31 square miles and is midway between San Francisco and Los Angeles approximately 90 miles north of Santa Barbara and 150 miles south of Monterey. The city’s coastal location provides a temperate climate with mild and dry summers and wet winters.
The City
The City was founded as the Town of Grover in 1887 and incorporated as Grover City in 1959. The city changed its name to Grover Beach in 1992 through a vote of the people and celebrated its 60th year as an incorporated city in 2019. Grover Beach has a Council-Manager form of government with four Council Members serving at-large for four-year terms and a directly elected Mayor serving two-year terms. The Mayor and City Council serve as the legislative and policy making body of the City. The City Manager, appointed by the Council, serves as chief executive officer and is responsible for the day-to-day administration of City affairs. The City Council also appoints a City Attorney. There are three active Advisory Boards and Commissions that are appointed by the City Council: Planning Commission; Parks, Recreation, and Beautification Commission; and Citizen Oversight Committee for City Revenue Measures.
City Overview
31 Services
The City provides a full range of municipal services. These include police protection, planning, building, water, sewer, street maintenance, and general administrative services. Wastewater treatment is provided to residents by the South San Luis Obispo County Sanitation District, a special district which also includes Arroyo Grande and the Oceano Community Services District. Fire protection services are provided by the Fire Cities Fire Authority, a joint powers authority comprised of Grover Beach, Arroyo Grande, and the Oceano Community Services District. In addition, the City maintains five parks and two community recreation centers.
Community Demographics
Based on 2020 Census data, the city’s population is 12,701 which is a reduction from the population of 13,156 in the 2010 Census. The median household income for Grover Beach residents is $66,408 compared with San Luis Obispo County median of $77,948 and California median of $78,672. 8.8% of residents live below the poverty line compared with 10.6% in San Luis Obispo County and 11.5% in California. The owneroccupied housing unit rate for the City is 50.7%. The median housing value of owner-occupied housing units is $536,300 and median gross rent is $1,545.
Local Economy
Grover Beach is located on the Central Coast midway between the Bay Area and Southern California and has direct access to a major north-south highway, rail lines with freight trains and inter-city Amtrak service, and public transit routes, and is near the San Luis Obispo County Regional Airport. Grover Beach has the only train station in the South County area with daily Amtrak Pacific Surfliner train service north to San Luis Obispo and south to Santa Barbara, Los Angeles, and San Diego along with connecting bus service. The community is comprised of residential housing stock of all types and at a range of costs, commercial retail businesses along West Grand Avenue serving both local residents and tourists, and nearly 90 acres of industrial areas currently comprised of light manufacturing and service businesses. The City is working with private developers to construct three hotels including the beachfront Grover Beach Lodge and partnering with a local Internet provider on a municipal fiber broadband network initially serving industrial and commercial areas. In addition, the City has adopted ordinances allowing commercial cannabis businesses and has entitled approximately 30 retail, manufacturing, testing laboratory, and distribution businesses to date with 14 businesses currently operating and several more expected to be operational in the next fiscal year. Cannabis businesses have added over 200 jobs in the past three years and generate approximately $1.6 million in annual cannabis tax revenue for the City.
FINANCIAL
TRENDS
Financial Trends
34 FINANCIAL TRENDS
SALES TAX REVENUE: LAST TEN YEARS
Sales Tax
Sales tax is now the General Fund’s largest
revenue source at 32% of General Fund revenue.
Sales tax revenue has grown significantly in the
last year due the passing of Measure F-20, 1%
transactions and use tax, approved by voters in
November 2020, adding an additional $2.3 million
in FY 2022-23.
As shown in the chart and table, sales tax
revenue increased in 2021 by 15.9%. Sales tax
revenue has continued to increase with an
average annual increase over the last five years
of 9.3%.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
EST
Financial Trends
35 PROPERTY TAX ASSESSED VALUATION: LAST TEN YEARS
Property Tax
Property tax has historically been one of the
General Fund’s most stable revenue sources and
comprises over 29% of General Fund revenues.
Property tax revenue is driven by changes in
assessed value as determined by the San Luis
Obispo County Assessor’s Office. As shown in the
chart and table, assessed valuation decreased in
2013 although more modestly compared with
other cities in California. Assessed valuation has
increased since then with an average annual
increase of 5.2% over the past five years. The FY
2022-23 budget assumes that the City’s property
tax revenues will increase by 4%.
Financial Trends
36 CANNABIS TAX REVENUE: LAST FOUR YEARS
Cannabis Tax
The City’s started collecting Cannabis Tax
revenues in 2018 and it is already the City’s third
largest tax revenue generator in the General
Fund at 9% in FY 2022-23. Cannabis revenue
increased significantly from FY 2017-18 through
FY 2020-21 increasing from $16,000 in the first
year of collection to $2.4 million in FY 2020-21. FY
2021-22 is showing a downturn in revenue as
cannabis businesses begin operating in nearby
cities and the industry in general continues to
face significant pressure from an illegal market
that is not taxed or regulated. The FY 2022-23
revenue amount represents a reset of expected
revenues from cannabis businesses.
Financial Trends
37 FRANCHISE FEE REVENUE: LAST TEN YEARS
Franchise Fees
This revenue source is comprised of franchises
paid to the City from utilities and private
companies such as Comcast, AT&T, etc.
Franchise fees are fairly stable and have
averaged a 2.4% annual increase over the past
five years. The new fiber optic cable or an
additional $100,000 in franchise fees that was
added in FY 2021-22 was delayed but expected to
be collected in FY 2022-23.
Financial Trends
38 TRANSIENT OCCUPANCY TAX REVENUE: LAST TEN YEARS
Transient Occupancy Tax
The City’s Transient Occupancy Tax (TOT)
revenues were stable during the recession and
began growing in 2013. Due to the passage of
Measure L-18 in November 2018 along with steady
growth in TOT, revenue for FY 2018-19 increased
by 16.7%. However, due to COVID-19 and the
related impact on the tourism industry, TOT did
not see any big increases in FY 2019-20, but has
seen significant increases in FY’s 2020-21 and
2021-22 as tourism has picked up with the waning
of the COVID-19 pandemic and additional TOT
revenue has picked up for short-term rentals.
Financial Trends
39 GENERAL FUND OPERATING COSTS: LAST TEN YEARS
General Fund Operating Costs
The average annual increase in operating costs
has been 10.2% over the last five years due to
increased revenue capacity for City projects and
services. Next year’s budget includes a General
Fund contribution of $2.3 million in FY 2022-23 to
fund capital projects. This budget follows
passage of the Measure F-20 sales tax, approved
by voters in November 2020, to address
important community needs. These needs
include infrastructure projects, economic
development, and public safety and emergency
services. Measure F-20 sales tax revenues are
estimated to bring in an additional $2.3 million in
FY 2022-23.
Financial Trends
40 GENERAL FUND RESERVES: LAST FIVE YEARS
ACTUAL COMPARED WITH 25% POLICY GOAL
General Fund Reserves
The graph depicts the ending reserves for the General Fund over the past four years and the estimate for the current year along with the amount based on the Council’s 25% current reserve policy goal. Ending reserves have remained higher than the policy level in recent years given the strong economy and prudent fiscal management focused on cost containment. This scope of reserves adheres to Council’s policy goal to ensure adequate reserves for emergencies or unforeseen circumstances or one-time needs. Ending reserves are projected to steadily increase through FY 2022-23 to 39%. The reserve policy goal increased to 25% of operating expenditures as approved by the Council as part of adopting the FY 2020-21 budget.
Financial Trends
41 EMPLOYER PENSION CONTRIBUTION RATES
Pension Cost Increases
A significant cost driver for the City and other cities in the state is pension cost increases. CalPERS has adopted a new amortization policy that shifts from a 30-year to a 20-year amortization period, which means after 20 years the increase in the unfunded liability will be fully paid off, but the increase in normal cost will continue. The chart below shows the ending of the 5-year ramp up in FY 2024-25 which will result in more level payments from year to year.
CALPERS EMPLOYER CONTRIBUTION RATES:
CLASSIC SWORN EMPLOYEES
Financial Trends
42 CALPERS EMPLOYER CONTRIBUTION RATES:
CLASSIC MISCELLANEOUS EMPLOYEES
Financial Trends
43 BUDGET
OVERVIEW
Budget Overview
46 General Fund
$16,388,949
47%
Special Revenue Fund
$830,735
2%
Transfers Out
$4,033,600
12%
Enterprise Funds
$4,375,355
13%
Capital Improvement
Program
$9,150,000
26%
FY 2022-23 REVISED - ALL FUNDS
CITY BUDGET
Overview
The City’s budget is a spending plan that is the legal authority to commit financial resources to provide services within Grover Beach. In FY 2021-22, the City shifted from an annual budget to a biennial budget for FY 2021-22 and FY 2022-23. The revised budget for FY 2022-23 total budget is $34,778,639 and includes $18,699,549 in the General Fund, $5,137,355 in Enterprise Funds, and $1,791,735 in Special Revenue Funds. The budget includes $9,150,000 in the Capital Improvement Program (CIP) consisting of funding of $2,130,000 from the General Fund, $2,800,000 from Enterprise Funds and $4,220,000 from Special Revenue Funds. The City’s General Fund budget is approximately 54% of the total revised budget in FY 2022-23 and provides most of the services commonly associated with City government such as Public Safety, Recreation, Planning, and Public Works. The revised FY 2022-23 General Fund budget includes $1.61 million in American Rescue Plan Act (ARPA) federal stimulus funds to support community needs in recovering from COVID-19.
FY 2022-23 REVISED
TOTAL EXPENDITURES
$34,778,639
Budget Overview
47 Use of Money
and Property
$334,500
1%
Tax Revenues
$14,781,200
43%
Licenses,Fines
$453,700
1%
Other Agencies
$3,122,646
9%
Charges for
Current Services
$6,749,720
19%
Transfers In
$4,033,600
12%
*Use of Reserves
$5,303,273
15%
FY 2022-23 REVISED
TOTAL REVENUE
$34,778,639
*Reserves are used for current year
appropriations, for example,
Measure K-14 bonds issued in prior
years are used to fund current
street projects.
Budget Overview
48 Property Tax
28%
Cannabis Tax
9%
Other
10%
Charges for
Current Services
5%
Transient
Occupancy Tax
4%
Sales Tax
32%
Other Taxes
5%
Licenses &
Permits
2%
Use of Money
and Property
1%
Transfers In
4%
City Manager's
Office
7%
Administrative
Services
3%
Community
Development
Police 6%
32%
Public Works
7%
Parks and
Recreation
3%
Capital
Improvement
Plan
11%
NonDepartmental
30%
Transfers Out
1%
GENERAL FUND REVENUE BY SOURCE
FY 2022-23 REVISED - $18,699,549
GENERAL FUND EXPENDITURES BY DEPARTMENT
FY 2022-23 REVISED - $18,699,549
Budget Overview
49 DEPARTMENT BUDGET COMPARISON
FY 2022-23 REVISED - $34,778,639
SUMMARY BY DEPARTMENT
FY 2020-21
Actuals
FY 2021-22
Estimated
FY 2022-23
Revised Budget
Administrative Services $ 1,138,150 $ 1,283,185 $ 1,380,390 City Manager's Office $ 1,163,553 $ 1,200,168 $ 1,303,754 Community Development $ 1,016,662 $ 1,327,474 $ 1,154,817 Parks and Recreation $ 335,921 $ 516,162 $ 486,287
Police $ 5,522,209 $ 6,296,705 $ 6,051,067
Public Works $ 4,756,688 $ 5,627,973 $ 5,392,647
Non-Departmental $ 5,214,282 $ 5,402,097 $ 5,826,077
Capital Improvement $ 606,428 $ 9,495,346 $ 9,150,000
Transfers $ 1,185,724 $ 4,900,120 $ 4,033,600
TOTAL CITY OPERATING BUDGET $ 20,939,617 $ 36,049,230 $ 34,778,639 Budget Overview
50 CITY REVISED BUDGET BY FUND
SUMMARY BY FUND
FY 2022-23
REVISED BUDGET
Fund # General Fund
01 General Fund $ 18,464,068
71 General Fund - Capital Replacement Fund $ 235,481
TOTAL GENERAL FUND $ 18,699,549
Capital Projects Fund
11 Capital Projects $ 3,045,000
TOTAL CAPITAL PROJECTS FUND $ 3,045,000
Special Revenue Funds:
10 Parks Construction $ 9,000
16 Senior Transportation $ 1,000
17 Gas Tax $ 462,450
18 Local Transportation $ 244,500
19 Road Maintenance and Rehabilitation $ 299,000
20 Street Rehabilitation and Repair $ 3,714,158
35 COPS Grant $ 80,000
43 State Mandated ADA $ 6,000
55 Wastewater Development Impact Fee $ 85,000
56 Parks Facility Development Impact Fee $ 175,000
57 Recreation Development Impact Fee $ 51,000
58 Water Development Impact Fee $ 32,000
82 Water Conservation $ 12,627
TOTAL SPECIAL REVENUE FUNDS $ 5,171,735
Enterprise Funds:
80 Wastewater $ 3,245,166
81 Water $ 4,617,189
TOTAL ENTERPRISE FUNDS $ 7,862,355
TOTAL CITY BUDGET $ 34,778,639
Budget Overview
51 GENERAL
FUND
23%
OTHER
SRF
8% LTF
2%
STREET
REHAB AND
REPAIR FUND
36%
WASTEWATER
FUND
20% WATER FUND
11%
CAPITAL IMPROVEMENT PROJECTS FY 2022-23 REVISED BUDGET
CIP BUDGET
FY 2022-23
REVISED
BUDGET
01 General Fund $ 2,130,000
Other Special Revenue Funds (OTHER SRF) 760,000
18 Local Transportation Fund (LTF) 160,000
20 Street Rehabilitation and Repair Fund 3,300,000
80 Wastewater Fund 1,825,000
81 Water Fund 975,000
TOTAL CIP BUDGET $ 9,150,000
PERCENTAGE OF CIP BUDGET BY FUND – FY 2022-23 REVISED
Budget Overview
52 CITYWIDE SOURCES OF FUNDING
SOURCES OF FUNDING
FY 2022-23
REVISED
BUDGET
% OF
BUDGET
Property Tax $ 5,486,000 16%
Sales Tax $ 6,004,000 17%
Franchise Fees $ 723,000 2%
Transient Occupancy Tax $ 750,000 2%
Cannabis Tax $ 1,632,000 5%
Utility Users Tax $ 186,200 1%
Licenses & Permits $ 400,000 1%
Fines $ 53,700 0%
Use of Money and Property $ 334,500 1%
Other Agencies $ 3,122,646 9%
Charges for Current Services $ 6,749,720 19%
Transfers In $ 4,033,600 12%
Use of Reserves $ 5,303,273 15%
Citywide Sources of Funding $ 34,778,639 100%
Budget Overview
53 CIP PROJECT BUDGET
PROJECTED REVENUE SUMMARY
Fund #
FY 2021-22
& PRIOR
FY 2022-23
REVISED
BUDGET
01 General Fund $ 787,634 $ 2,130,000
17 Gas Tax Fund 50,000 150,000
18 Local Transportation Fund 160,000
19 Gas Tax Fund (RMRA) 299,000
20 Street Rehabilitation and Repair Bond Fund 3,300,000 55 Wastewater Development Impact Fee 85,000 85,000
56 Parks Facility Development Impact Fee 391,000 175,000 57 Recreation Facility Development Impact Fee - 51,000
80 Wastewater Fund 1,305,000 1,825,000
81 Water Fund 1,822,761 975,000
Total: $ 4,441,395 $ 9,150,000
Budget Overview
54 FY 2022-23 REVISED INTERFUND TRANSFERS IN
FUNDS OPERATING
COST
ALLOCATION
CAPITAL
TRANSFERS TOTAL
General Fund
General Fund $ 56,000 $ 515,000 $ - $ 571,000
General Fund - Capital Replacement Fund $ 220,600 $ 220,600 TOTAL GENERAL FUND $ 276,600 $ 515,000 $ - $ 791,600
Capital Projects Funds
Capital Projects Fund 3,045,000 $ 3,045,000
Underground Utilities $ -
TOTAL CAPITAL PROJECTS FUNDS $ - $ - $ 3,045,000 $ 3,045,000 Special Revenue Funds
Parks Construction $ -
Senior Transportation $ -
Gas Tax $ -
Local Transportation $ -
Road Maintenance and Rehabilitation $ -
Street Rehabilitation and Repair $ 80,000 $ 80,000
CDBG Non-Entitlement $ -
HOME $ -
COPS Grant $ -
Special Event $ -
State Mandated ADA $ -
Transportation Development Impact Fee $ -
Law Enforcement Development Impact Fee $ -
Administrative Development Impact Fee $ -
Fire Protection Development Impact Fee $ -
Stormwater Development Impact Fee $ -
Wastewater Development Impact Fee $ -
Parks Facility Development Impact Fee $ -
Recreation Development Impact Fee $ -
Water Development Impact Fee $ -
Water Conservation $ -
Trust and Agency Fund $ -
TOTAL SPECIAL REVENUE FUNDS $ - $ - $ 80,000 $ 80,000
Enterprise Funds:
Wastewater 85,000 $ 85,000
Water $ 32,000 $ 32,000
TOTAL ENTERPRISE FUNDS $ 32,000 $ - $ 85,000 $ 117,000
TOTAL INTERFUND TRANSFERS IN $ 308,600 $ 515,000 $ 3,210,000 $ 4,033,600
INTERFUND TRANSFERS
FISCAL YEAR 2022-23 REVISED
TRANSFERS IN
Budget Overview
55 FY 2022-23 REVISED INTERFUND TRANSFERS OUT
FUNDS OPERATING
COST
ALLOCATION
CAPITAL
TRANSFERS TOTAL
General Fund
General Fund $ 180,600 $ 2,130,000 $ 2,310,600
General Fund - Capital Replacement Fund $ -
TOTAL GENERAL FUND $ 180,600 $ - $ 2,130,000 $ 2,310,600 Capital Projects Funds
Capital Projects Fund $ -
Underground Utilities $ -
TOTAL CAPITAL PROJECTS FUNDS $ - $ - $ - $ -
Special Revenue Funds
Parks Construction $ -
Senior Transportation $ -
Gas Tax $ 3,000 $ 150,000 $ 153,000
Local Transportation $ 160,000 $ 160,000
Road Maintenance and Rehabilitation $ 299,000 $ 299,000 Street Rehabilitation and Repair $ -
CDBG Non-Entitlement $ -
HOME $ -
COPS Grant $ -
Special Event $ -
State Mandated ADA $ 6,000 $ 6,000
Transportation Development Impact Fee $ -
Law Enforcement Development Impact Fee $ -
Administrative Development Impact Fee $ -
Fire Protection Development Impact Fee $ -
Stormwater Development Impact Fee $ -
Wastewater Development Impact Fee $ 85,000 $ 85,000
Parks Facility Development Impact Fee $ 175,000 $ 175,000 Recreation Development Impact Fee $ 51,000 $ 51,000
Water Development Impact Fee $ 32,000 $ 32,000
Water Conservation $ -
TOTAL SPECIAL REVENUE FUNDS $ 41,000 $ - $ 920,000 $ 961,000 Enterprise Funds:
Wastewater $ 56,000 $ 165,000 $ 65,000 $ 286,000
Water $ 31,000 $ 350,000 $ 95,000 $ 476,000
TOTAL ENTERPRISE FUNDS $ 87,000 $ 515,000 $ 160,000 $ 762,000 TOTAL INTERFUND TRANSFERS OUT $ 308,600 $ 515,000 $ 3,210,000 $ 4,033,600
INTERFUND TRANSFERS
FISCAL YEAR 2022-23 REVISED
TRANSFERS OUT
Budget Overview
56 FULL TIME EQUIVALENTS PERSONNEL
DEPARTMENT 2019-20 2020-21 2021-22 2022-23
City Council 5.00 5.00 5.00 5.00
City Manager's Office 4.00 4.00 5.00 5.00
Administrative Services 8.00 8.00 9.00 9.00
Community Development 5.25 5.25 5.25 5.25
Public Works 16.38 16.38 16.38 16.38
Parks and Recreation 2.60 2.60 2.60 2.60
Police 33.60 33.60 36.60 36.60
Total 74.83 74.83 79.83 79.83
FISCAL YEAR
Budget Overview
57 GENERAL FUND OPERATING INCREASES ABOVE $25,000
APPROVED IN TWO-YEAR FY 2021-23 BUDGET
Department/Description
City Manager's Office GF Expense
1 FTE Deputy City Manager $ 123,000 Ongoing
Communications Contract 100,000 Ongoing
Total $ 223,500
Administrative Services
1 FTE Acounting Technician II (50% GF/50% Enterprise) $ 40,800 Ongoing 1 FTE Assistant IT (50% GF/50% Enterprise) 40,800 Ongoing Total $ 81,600
Community Development
Noise Element Update 60,000 One-Time
Total $ 60,000
Police
1 FTE Community Services Technician I $ 76,500 Ongoing
2 FTEs Police Officers 325,000 Ongoing
Police Drone * 35,000 One-Time
Replace Command Post Vehicle (five year lease) 71,600 Ongoing Total $ 508,100
Grand Total $ 873,200
FY 2022-23 Revised
*NEW EXPENDITURES FOR FY 2022-23.
Budget Overview
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DEPARTMENT
BUDGETS
Department Budgets
62 ADMINISTRATIVE SERVICES DEPARTMENT
MISSION STATEMENT
Provide clear, accurate and timely financial information to City officials and financial management services which enhance the financial health of the City and improve the economic well-being of the community now and in the future.
SERVICES AND STRUCTURE
Operationally, the Administrative Services Department provides the following services:
Accounting and Financial Reporting
Performing the accounting for all of the City's financial transactions and coordinating the assisting in the preparation of the annual Audit and Comprehensive Annual Financial Report. The department also prepares State of California and County of San Luis Obispo required annual reports.
Budget
Coordinating the annual operating and capital budget process, including the development of the fee schedule, assisting departments with reports and analysis to ensure expenditures are maintained within budgeted appropriations.
Treasury and Revenue Management
Managing the City's cash and investment to ensure requirements are met and return on invested funds is aligned with the City's investment policy. Administering the Business Tax Certificate and Cannabis Tax programs and monitoring and enforcing collections of other revenue sources.
Accounts Payable
Administering the Accounts Payable process and ensure vendors are paid timely and accurately. Filing all required regulatory and tax-related documentation in a timely manner.
Payroll
Process bi-weekly payroll for all City's employees, reporting and paying tax obligations, and completing all regulatory reporting requirements.
Department Budgets
63 Information Technology
Work collaboratively with all City departments to deliver the highest quality IT services, infrastructure, and technology consulting possible. Manage the operation, maintenance and support of City technology infrastructure and technology assets.
Utility Billing
Provides customer account services to over 4,800 accounts for water, wastewater and stormwater services provided by the City. Utility bills are mailed every two months to all customers of the city, with one half of the city billed each month.
Debt Service
Manage the City's debt portfolio to ensure adequate funds are available to make principal, interest and other debt-related payments in a timely manner, as well as ensuring all continuing disclosure requirements.
Risk Management
Identify, evaluate, control and reduce risks inherent to City operations and services.
FY 2021-22 HIGHLIGHTS
• Prepared FY 2020-21 Annual Comprehensive Financial Report with no findings and an unqualified opinion from the independent auditors
• Completed application to Clean Water State Revolving Fund for Central Coast Blue Project • Applied to the California Water Arrearage Program and received $53,000 to assist Water customers impacted by the pandemic
• Completed cross-training of staff across programs
• Set up an investment account to diversify the City’s investment portfolio and ensure invested funds are aligned with City’s investment policy
• Prepared updated five-year General Fund Financial Forecast • Transitioned City organization to a biennial (two-year) budget • Hired an Information Technology Assistant to provide needed technology and internal support for financial services
• Received, tracked and administered the $3.2 million American Rescue Plan Act funds to support community needs
• Completed $10 million bond issue for Measure K-14 Street Rehab and Repair Projects • Implemented network security monitoring to provide network security alerts and notifications of malicious activity
• Implemented various IT projects including replacing back-up storage and core firewall to stay up-todate with current technology Department Budgets
64 • Established a private network link to City of Pismo Beach during the Police Dispatch Consolidation Project
• Attended California Society of Municipal Finance Officers conference and training FY 2022-23 KEY DEPARTMENT INITIATIVES
• Assist with process to update citywide policies and procedures, including an updated Purchasing Policy
• Assist with training for staff on updated policies
• Assist Community Development Department with development impact fee study and cost allocation plan
• Continue to track and administer the $3.2 million American Rescue Plan Act funds • Stay up-to-date with current technology through training and education of IT staff to deliver the highest quality IT services, infrastructure, and technology consulting possible • Continue to provide staff education and training for City technology systems and any other areas of needed continuing education
• Begin planning for replacement of the City’s financial system and citywide development and implementation of new Enterprise Resource Planning system • Attend conferences and training for payroll through CalPERS • Attend conferences and training through financial organizations, such as Government Finance Offers Association and California Society of Municipal Finance Officers
Department Budgets
65 ADMINISTRATIVE SERVICES DEPARTMENT
FINANCIALS
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
EXPENDITURES BY CATEGORY
Salaries and Benefits $ 858,560 $ 794,734 $ 933,600 $ 926,978 $ 1,002,840 Supplies and Services 248,930 337,431 364,600 331,207 367,550 Minor Capital 5,985 25,000 25,000 10,000
TOTAL EXPENDITURES $ 1,107,490 $ 1,138,150 $ 1,323,200 $ 1,283,185 $ 1,380,390
EXPENDITURES BY PROGRAM
Accounting (131) $ 300,607 $ 260,914 $ 312,158 $ 309,169 $ 328,539 Utility Billing (132) 646,307 669,241 702,122 690,642 757,841 Information Technology (134) 160,576 207,995 308,920 283,374 294,010 TOTAL EXPENDITURES BY PROGRAM $ 1,107,490 $ 1,138,150 $ 1,323,200 $ 1,283,185 $ 1,380,390
FUNDING SOURCES
General Fund $ 461,184 $ 468,909 $ 616,578 $ 588,043 $ 618,049 Wastewater Fund 323,031 324,699 350,912 348,286 377,293 Water Fund 323,275 344,542 351,210 342,356 380,548
Local Transportation Fund 4,500 4,500 4,500
TOTAL FUNDING SOURCES $ 1,107,490 $ 1,138,150 $ 1,323,200 $ 1,283,185 $ 1,380,390 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2021-22 FY 2022-23 Administrative Services Director 1.00 1.00
Finance Manager 1.00 1.00
Accounting Specialist 1.00 1.00
Accounting Technician II 3.00 3.00
Administrative Assistant I 1.00 1.00
IT Specialist 1.00 1.00
Assistant IT Specialist 1.00 1.00
TOTAL POSITIONS 9.00 9.00
FY 2021-22
Department Budgets
66 CITY MANAGER’S OFFICE
MISSION STATEMENT
The City Manager's Office provides leadership, support, and coordination for City departments; provides policy recommendations to the City Council and implements Council policies and priorities; represents City interests in local and regional issues; and oversees key program areas of citywide nature.
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.
City Clerk
Ensure transparency of City government to the public in an ethical, professional and impartial manner regarding legislative and advisory body proceedings; maintain a complete and accurate record of City Council proceedings; preserve official legislative records; manage municipal elections; serve as compliance officer for state and local statutes; and process general liability claims.
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 welcome workplace.
Department Budgets
67 FY 2021-22 HIGHLIGHTS
• Oversaw citywide implementation of FY 2021-23 Council Goals • Coordinated economic development and business assistance services in partnership with the Chamber to support economic vitality in the city
• Provided staff leadership for continued implementation of commercial cannabis ordinances and identification of potential policy changes such as onsite consumption lounges and tax rates • Coordinated organizational response to homelessness issues including encampment cleaning and purchase of property for use as homeless housing facility • Completed a cost-sharing agreement with the cities of Arroyo Grande and Pismo Beach for the Central Coast Blue recycled groundwater project
• Enhanced citywide communication and engagement efforts with assistance of outside communications firm
• Worked with survey research firm to carry out biennial community priorities survey • Coordinated Council districting process to develop and approve district maps beginning with the November 2022 election
• Provided citywide leadership in enhancing organizational performance through improving systems, processes, structures, and tools
• Improved citywide records retention processes and developed updated records retention schedule • Coordinated recruitment, selection, and orientation for new Commissioners as needed • Developed and implemented Neogov Perform Module to improve the performance evaluation process
• Promoted employee training and development and implement citywide training plan • Conducted organizational structure and staffing assessments where needed and developed recommendations for City Council approval
• Worked with the Administrative Services Department to update citywide policies and procedures • Appointed new Deputy City Manager following open recruitment process for this new position FY 2022-23 KEY DEPARTMENT INITIATIVES
• Oversee citywide implementation of FY 2022-23 Council Goals and development of updated Goals for FY 2023-25
• Coordinate economic development and business assistance services in partnership with the Chamber to support economic vitality in the city
Department Budgets
68 • Provide staff leadership for continued implementation of commercial cannabis ordinances and identification of policy changes
• Coordinate organizational response to homelessness issues such as development of homeless housing facilities
• Enhance citywide communication and engagement efforts with assistance of outside communications firm
• Provide citywide leadership in enhancing organizational performance through improving systems, processes, structures, and tools
• Coordinate November 2022 municipal election and implementation of new Council districts • Provide support for new Council Members as needed following November 2022 election • Coordinate recruitment, selection, and orientation for new Commissioners as needed • Promote employee training and development and implement citywide training plan • Implement citywide telecommuting policy to enable flexible schedules while maintaining productivity
• Conduct organizational structure and staffing assessments where needed and develop recommendations for City Council approval
Department Budgets
69 CITY MANAGER’S OFFICE
FINANCIALS
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
EXPENDITURES BY CATEGORY
Salaries and Benefits $ 591,569 $ 790,480 $ 865,846 $ 794,641 $ 850,320 Supplies and Services 327,491 347,453 520,408 379,908 427,815 Minor Capital 44,557
Debt Service 25,620 25,620 25,619 25,619 25,619
TOTAL EXPENDITURES $ 989,237 $ 1,163,553 $ 1,411,873 $ 1,200,168 $ 1,303,754
EXPENDITURES BY PROGRAM
Legislative (121) $ 268,245 $ 246,361 $ 268,677 $ 278,134 $ 300,946 City Management (122) 299,773 368,443 545,629 441,605 527,373 Human Resources (123) 139,774 165,656 189,977 185,917 201,685 Cannabis Regulatory (124) 281,445 383,092 407,590 294,512 273,750 TOTAL EXPENDITURES BY PROGRAM $ 989,237 $ 1,163,553 $ 1,411,873 $ 1,200,168 $ 1,303,754
FUNDING SOURCES
General Fund $ 989,237 $ 1,163,553 $ 1,404,373 $ 1,200,168 $ 1,303,754 Administrative DIF 7,500
TOTAL FUNDING SOURCES $ 989,237 $ 1,163,553 $ 1,411,873 $ 1,200,168 $ 1,303,754 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2021-22 FY 2022-23 Mayor & Council Members 5.00 5.00
City Manager 1.00 1.00
Deputy City Manager 1.00 1.00
City Clerk/Executive Assistant 1.00 1.00
Management Analyst 1.00 1.00
Deputy City Clerk/Administrative Analyst 1.00 1.00
TOTAL POSITIONS 10.00 10.00
FY 2021-22
Department Budgets
70 COMMUNITY DEVELOPMENT
MISSION STATEMENT
Continue to maintain a high level of customer service with responsible and accountable services for residents of the community.
SERVICES AND STRUCTURE
The Community Development Department has broad responsibilities included long-range planning, review of applications for new development, and maintenance of neighborhoods. The department has four divisions to carry out the department's work: Building, Code Compliance, Housing and Planning. These divisions are supported by sharing departmental administrative functions with the Public Works Department. The department provides staff support and services to the Planning Commission.
Building Division
The Building Division provides plan review and inspection of building and structures to ensure a safe community. The division regulates local and state laws related to building construction, maintenance, use, repair and habitation. This includes the enforcement of the established building codes and standards.
The division provides plan review and construction inspection services through a contract with a building services consultant.
Code Compliance
Enforces the City's municipal codes related to property maintenance, zoning, and building code violations to promote, preserve, and maintain an attractive community.
Housing
This division manages grants from federal Community Development Block Grant (CDBG) and HOME Investment Partnership Program that currently provide programs for first time homebuyer assistance, owner occupied rehabilitation loans and other programs that benefit low-income households. It also monitors the existing affordable housing inventory. Staff is augmented by using consultants to implement the grant programs.
Department Budgets
71 Planning
The Planning Division plans for the physical, social, and economic development of the City and ensures compliance with the California Environmental Quality Act (CEQA) for both public and private projects.
Together with the Building Division, the Planning Division reviews private development projects to assure consistency with the General Plan, Development Code, other policy documents, and government codes.
The division also oversees updates to the Development Code and other policy documents for the physical and economic development of the city.
FY 2021-22 HIGHLIGHTS
• Completed a Land Use Element and Development Code update to implement Housing Element programs
• Completed implementation of the sign ordinance update • Completed update to the Safety Element
• Completed Code updates to improve implementation of the code compliance program • Completed development of Accessory Dwelling Unit pre-approved building plans • Expedited permit processing for significant economic development projects including commercial cannabis and hotel projects
FY 2022-23 KEY DEPARTMENT INITIATIVES
• Implement Land Use Element and Development Code updates including development of checklists, website update, staff training, and developer outreach • Apply for “Pro-Housing Designation” from State Department of Housing and Community Development
• Oversee the start of the building permit process for the affordable housing project on South 13th Street (Cleaver property)
• Work with 5 Cities Homeless Coalition on the development of a homeless housing facility on Cityowned property on South 4th Street • Initiate and complete update to the Circulation Element to comply with SB 743 • Initiate update to the Noise Element
• Update the subdivision ordinance
Department Budgets
72 COMMUNITY DEVELOPMENT
FINANCIALS
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
EXPENDITURES BY CATEGORY
Salaries and Benefits $ 667,945 $ 712,659 $ 739,376 $ 728,049 $ 732,017 Supplies and Services 638,143 304,003 677,300 599,425 422,800 TOTAL EXPENDITURES $ 1,306,088 $ 1,016,662 $ 1,416,676 $ 1,327,474 $ 1,154,817
EXPENDITURES BY PROGRAM
Planning (141) $ 572,510 $ 547,071 $ 1,020,600 $ 948,850 $ 773,301 CDBG (142) 395,093 159,662 32,635
Building (144) 255,971 223,671 296,990 275,969 289,575
Code (145) 82,514 86,258 99,086 70,020 91,941
TOTAL EXPENDITURES BY PROGRAM $ 1,306,088 $ 1,016,662 $ 1,416,676 $ 1,327,474 $ 1,154,817
FUNDING SOURCES
General Fund $ 910,995 $ 857,000 $ 1,416,676 $ 1,327,474 $ 1,154,817 Non-Entitlement CDBG Fund 395,093 159,662
TOTAL FUNDING SOURCES $ 1,306,088 $ 1,016,662 $ 1,416,676 $ 1,327,474 $ 1,154,817 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2021-22 FY 2022-23 Community Development Director 1.00 1.00
Senior Planner 1.00 1.00
Associate Planner 1.00 1.00
Assistant Planner 1.00 1.00
Code Compliance Officer 1.00 1.00
Administrative Assistant II 0.25 0.25
TOTAL POSITIONS 5.25 5.25
FY 2021-22
Department Budgets
73 PARKS AND RECREATION
MISSION STATEMENT
The Grover Beach Parks and Recreation Department is committed to providing or facilitating quality recreational services, including programs, classes, special events, and facilities to all members of the community in a courteous and efficient manner.
SERVICES AND STRUCTURE
Operationally, the Parks and Recreation Department provides the following services:
Recreation Administration Services
Coordinates the department’s administrative services that support the operations of areas such as support to the Parks, Recreation, and Beautification Commission, park improvement planning, customer service, park and facilities reservations, marketing and budget.
Recreation/Community Center Facilities Services
Facilitate reservations in an efficient manner with utmost respect with the public for use of community centers and parks. Provides recommendations for park and facility improvements.
Recreation and Community Services
Provides programs of recreational, instructional and special event activities for the public utilizing community centers and parks.
Department Budgets
74 FY 2021-22 HIGHLIGHTS
• Worked closely with the Parks, Recreation and Beautification Commission to develop trending recreation programs and the benefits of public parks
• Worked with community partners including regional, private and nonprofit entities to enhance and develop new programs
• Continued the City’s tree planting initiative to plant more trees throughout the City public spaces FY 2022-23 KEY DEPARTMENT INITIATIVES
• Build on existing relationships and partnerships and volunteers to develop trending recreation programs, park improvements and the benefits of public parks • Continue investing in park infrastructure
• Promote the benefits of recreation programs and public parks in our community while providing innovative recreation programs, facilities, playgrounds, classes and park amenities • Work with community partners including regional, private and nonprofit entities to enhance and develop new programs
Department Budgets
75 PARKS AND RECREATION
FINANCIALS
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
EXPENDITURES BY CATEGORY
Salaries and Benefits $ 273,846 $ 247,058 $ 272,447 $ 292,512 $ 288,287 Supplies and Services 146,804 88,863 180,150 223,650 198,000 TOTAL EXPENDITURES $ 420,650 $ 335,921 $ 452,597 $ 516,162 $ 486,287
EXPENDITURES BY PROGRAM
Recreation (171) $ 190,207 $ 127,759 $ 213,937 $ 195,179 $ 215,244 Parks Facilities (172) 78,809 78,562 86,893 85,079 85,348 Community Services (173) 151,634 129,600 151,767 235,904 185,695 TOTAL EXPENDITURES BY PROGRAM $ 420,650 $ 335,921 $ 452,597 $ 516,162 $ 486,287
FUNDING SOURCES
General Fund $ 412,190 $ 327,461 $ 428,597 $ 507,662 $ 477,287 Parks Construction Fund 8,460 8,460 9,000 8,500 9,000
Parks Facilities DIF 7,500
Recreation Facilities DIF 7,500
TOTAL FUNDING SOURCES $ 420,650 $ 335,921 $ 452,597 $ 516,162 $ 486,287 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2021-22 FY 2022-23 Parks and Recreation Director 1.00 1.00
Recreation Coordinator 1.00 1.00
Administrative Assistant 0.60 0.60
TOTAL POSITIONS 2.60 2.60
FY 2021-22
Department Budgets
76 POLICE
MISSION STATEMENT
At the Grover Beach Police Department, we serve to contribute to a wholesome community environment in which individuals may work, play, prosper, raise families, and otherwise pursue their legitimate goals without fear of criminal or civil disorder.
VISION STATEMENT
We, as members of the Grover Beach Police Department, are dedicated to providing the best public safety service which reflects our community's superior quality of life. We are focused on cooperative efforts involving the individual citizen, their neighborhood, and the Department members. This is a reflection of our community's endeavor to sustain a sense of safety and security.
VALUES STATEMENT
As we focus on our vision and pursue our mission, we pledge the following values as of utmost importance for public service while not excluding other principles.
Service
To provide each individual of Grover Beach with responsive and humane law enforcement which promotes security, peace of mind, and tranquility in our Community.
Ethics
We occupy a position of public trust and base our decisions upon moral as well as practical concerns while always accepting responsibility for our actions.
Respect
For the uniqueness of each individual, holding sacred the principal of human dignity; this being a truth for each citizen of the community and each member of the Department. By nurturing a sense of family within the Department, recognizing our people are our greatest and most important asset. For diverse cultural values while fostering open communication necessary to share ideas.
Department Budgets
77 Vision
That the community maintains its satisfying quality of life including a sense of being secure while enjoying the amenities of Grover Beach, however, always anticipating the changing needs of the City and Successfully meeting those needs.
Integrity
Being the benchmark of an ethical individual and Department, in thought and deed, we adhere to sincerity and honesty, while avoiding deception, expediency, artificiality, or shallowness which encompasses the courage to perform our duties.
Courtesy
To all we come in contact within both the spoken and unspoken word, realizing conflict resolution begins with cooperation and mutual understanding.
Experience
Experience is the journey in search of excellence through training, developing the confidence to innovate, explore non-traditional methods of community service and law enforcement; and efficiently manage public resources anchored in the philosophy of community oriented policing and problem solving.
Department Motto
"Committed to Our Community"
The Grover Beach Police Department is a 24/7 comprehensive community policing department divided into two service units; Field Operations and Support Services.
Each 12-hour patrol shift is staffed with a minimum of two officers with most shifts having between three and five officers on duty at one time. Shift staffing is based on the day of the week, the time of the day and the call volume history. In 2021, Patrol completed 22,985 calls for service taking over 1,900 reports from community members.
The Support Services unit is managed by one (1) Police Commander who oversees the Detective Bureau, Records Bureau and Administration tasks. The Commander supervises 8 personnel, consisting of one (1) Detective Sergeant, two (2) Detectives, two (2) Communications Technicians, two (2) Records/Property Technicians and one (1) Police Services Analyst.
Department Budgets
78 The Grover Beach Police Department Detective Bureau consists of one full-time Detective Sergeant, two full-time Detectives and one Police Services Analyst that investigate crimes ranging from petty thefts to homicides. For 2021, the Detective Bureau investigated 205 cases. The Detective Bureau has one fulltime Detective assigned solely to the Cannabis Regulatory Program for the city.
The Records Bureau is staffed by two Full-Time Records/Property Technicians who handled over 1,900 report filings for 2021. The Records Bureau is responsible for reporting all crime statistics to various State and Federal law enforcement agencies, filing police reports with the District Attorney for prosecution and processing front counter requests for assistance from our community members.
The Grover Beach Communications Center has consolidated services with the Pismo Beach Police Department Communications Center. This consolidation combines the dispatching services for both cities into one facility located in Pismo Beach. The consolidation of these services will provide faster communication and safer community responses for police officers in the field. In 2021, the Communications Center handled 23,000 calls for service and Computer Aided Dispatch (CAD) entries.
FY 2021-22 HIGHLIGHTS
In line with the City Council's goals, the Police Department will champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.
• Successfully transitioned three retiring employees and seven new employees • Implemented a Community Services Technician position that increased neighborhood responses to minor calls for service ad code compliance matters
• Responded to 23,000 calls for service, a 6% increase over 2020 • Reduced Part 1 Crimes (Serious/Violent) by 26% over 2020 and Reduced Part 2 Crimes (Non-Violent) by 203% over 2020
• Reduced Traffic Collision by 18% over 2020
• Continued safety protocols to protect staff and community members during the COVID-19 pandemic • Worked with other City staff and cannabis industry representatives to continue safe operations of the commercial cannabis industry in the city
• Coordinated homeless outreach and assistance with multiple non-profit and governmental agencies to reduce the vagrancy behavior in the city
Department Budgets
79 • Engaged the community on the Police Department social media platforms that consist of Facebook, Instagram, Twitter Nextdoor and Ring Neighbors allowing the department to communicate with over 12,000 followers
• Carried out a Tobacco Control grant program to deter tobacco use and sales to minors FY 2022-23 KEY DEPARTMENT INITIATIVES
• Update the City’s Emergency Operations Plans and implement staff training on the revised plans • Transition to a consolidated Computer Aided Dispatch (CAD) and Records Management Software (RMS) program with the Pismo Beach Police Department to enhance efficiency between both police departments
• Increase staffing in the Community Services Technician program in the Police Department to offer expanded services to the Community
• Ensure officers receive updated training in Crisis Intervention, De-Escalation, Implicit Bias, and Principled Policing concepts
Department Budgets
80 POLICE
FINANCIALS
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
EXPENDITURES BY CATEGORY
Salaries and Benefits $ 3,738,183 $ 4,577,141 $ 4,335,571 $ 4,288,274 $ 4,576,136 Supplies and Services 687,872 622,133 1,235,650 1,159,301 1,274,950 Minor Capital 59,364 215,743 486,000 704,149 55,000
Debt Service 108,004 107,192 144,981 144,981 144,981
TOTAL EXPENDITURES $ 4,593,423 $ 5,522,209 $ 6,202,202 $ 6,296,705 $ 6,051,067
EXPENDITURES BY PROGRAM
Support Services (191) $ 504,958 $ 500,132 $ 499,151 $ 591,081 $ 546,746 Operations (192) 2,784,896 3,813,216 3,972,961 3,776,050 3,896,271 Investigations (193) 323,545 274,921 388,730 543,805 393,210 Communications & Records (194) 980,024 933,940 1,341,360 1,385,769 1,214,840 TOTAL EXPENDITURES BY PROGRAM $ 4,593,423 $ 5,522,209 $ 6,202,202 $ 6,296,705 $ 6,051,067
FUNDING SOURCES
General Fund $ 4,391,919 $ 5,186,711 $ 5,639,721 $ 5,728,267 $ 5,826,086 Equipment Replacement Fund 73,381 73,381 474,981 474,981 144,981 COPS Grant Fund 128,123 262,118 80,000 93,457 80,000
Police DIF 7,500
TOTAL FUNDING SOURCES $ 4,593,423 $ 5,522,209 $ 6,202,202 $ 6,296,705 $ 6,051,067 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2021-22 FY 2022-23 Police Chief 1.00 1.00
Commander 2.00 2.00
Sergeant 5.00 5.00
Senior Police Officer 4.00 4.00
Police Officer 10.00 10.00
Community Services Technician I 1.00 1.00
Communications Supervisor 1.00 1.00
Lead Comm. & Records Technician 1.00 1.00
Communications & Records Technician 5.00 5.00
Records/Property Technician 2.00 2.00
Administrative Secretary 1.00 1.00
Detective 3.00 3.00
Reserve Level 1 0.60 0.60
TOTAL POSITIONS 36.60 36.60
FY 2021-22
Department Budgets
81 PUBLIC WORKS
MISSION STATEMENT
To provide reliable, cost-effective and responsive water, wastewater and storm water services; to maintain and improve city facilities, streets, parks, vehicles and equipment in order to assure their beneficial use for the community; and to provide development review services with a goal to implement City Municipal and Development Codes in a manner that encourages investment in the community while assuring adherence to adopted standards.
OVERVIEW
The Public Works Department is separated into two divisions: Maintenance and Operations, and Engineering Services. Maintenance and Operations oversees the water, wastewater and stormwater systems as well as all public infrastructure and facilities. Engineering services provides review of development applications, review and approval of all capital improvements, management of regional resources and regulatory compliance.
SERVICES AND STRUCTURE
The two divisions are responsible for various programs. The Maintenance and Operations Division operates, maintains, constructs and improves the City's streets, water, sanitary sewer and storm water systems, facilities, parks, and City vehicles and equipment. The Engineering Services Division provides for regulatory compliance, traffic engineering, design and construction management services to maintain and improve the City's sewer and storm drain systems, streets, parks and facilities as well as development review services for private developments. This division also provides coordination with regulatory agencies and management of local and regional resources.
Maintenance Operations
The Maintenance and Operations Division is responsible for the water distribution and treatment system, the wastewater collection system, the stormwater collection system and maintenance and repairs to all City infrastructure which includes streets, sidewalks, bike paths, signs and markings, parks, playgrounds, street landscaping, street trees, street sweeping contract services and contract traffic signal and street light maintenance services. The Division is also responsible for maintenance of all City vehicles and equipment.
Department Budgets
82 Engineering Services
The Engineering Services Division includes four functions: Engineering Design, Development Review, Resource management and Regulatory Compliance.
1. Engineering Design provides design and construction management services for capital improvement projects to improve the City's infrastructure including parks and facilities, streets, water, sewer and storm drain systems.
2. Development Review provides for engineering review and inspection of all privately funded public improvements within the City's right-of-way as well as regulatory compliance for private grading and drainage.
3. Resource Management involves participation in and coordination with regional resource management groups and agencies for resources such as surface water, groundwater and reclaimed wastewater.
4. Regulatory Compliance implements programs to meet regulatory requirements for wastewater collection and pretreatment, water quality, and air quality and solid waste collection and recycling.
FY 2021-22 HIGHLIGHTS
• Purchased and upgraded equipment for operations and maintenance • Initiated the Corporate Yard Master Plan process
• Increased focus on planting trees in parks and on major corridors • Continued to improve the condition of street signs and striping with a focus on bike lanes • Improved water system operation by installing additional valves and replacing water meters • Completed Mentone Basin Park parking and decomposed granite pathway construction on Trouville Avenue
• Completed the 16th Street Park Project
• Constructed Police Department vehicle storage project • Implemented changes to sidewalk infill cost-sharing program • Completed South Oak Park pavement rehabilitation (CIP 2284) • Completed construction of CIP 2295-10 Street Rehabilitation project (Manhattan Avenue, Seabright Avenue, Trouville Avenue, 10th Street, South 11th Street, Rincon Court, Malibu Court, Jalama Court and Stinson Court)
• Completed construction of CIP 2295-13 (Manhattan Avenue, Seabright Avenue, South 10th Street, South 12th Street)
• Completed agency permitting and began design of Central Coast Blue • Completed CIP 4004 Water Main Upgrades (April 2022)
Department Budgets
83 • Completed CIP 4267-2 CDBG Water Main Upgrades
• Completed CIP 5001 Highland Sewer Project
• Complete design of Front Street Lift Station upgrades (CIP 5003) • Completed Nacimiento Lift Station Upgrades (CIP 5004) FY 2022-23 KEY DEPARTMENT INITIATIVES
• Implement electronic filing system and GIS system for City asset management • Continue focus on planting trees in parks and on major corridors • Continue to improve the condition of streets and striping with a focus on bike lanes • Continue to improve department filing and record keeping systems • Begin design of first phase of Ramona Park upgrades focusing on developing construction documents
• Continue to deliver street repair and improvement projects on an accelerated schedule • Continue investment in City facilities including City Hall, Police Station, Community Centers, Parks, Fire Station, and Corporation Yard
• Continue commitment and actions to removing accessibility barriers city-wide • Implement Street Lighting project (CIP 2003)
• Construct storm water improvements for the train station project • Continue to implement pedestrian and bicycle improvements including sidewalk infill, corner ramps and bike lane improvements
• Construct West Grand Avenue Streetscape Improvements (CIP 2287) • Complete CIP 2295-14 and 15 Street Rehabilitation projects • Continue development of Central Coast Blue regional recycled water project • Complete Well Field capacity study
• Complete the addition of water main zone valves (CIP 4007) • Continue Sewer System upgrades to support both existing and future flows (CIP 5002) • Begin design of a second phase of Sewer System Upgrades to support both existing and future flows (CIP 5003)
Department Budgets
84 PUBLIC WORKS
FINANCIALS
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
EXPENDITURES BY CATEGORY
Salaries and Benefits $ 1,633,567 $ 1,651,097 $ 1,719,127 $ 1,728,359 $ 1,812,279 Supplies and Services 2,786,833 2,900,041 3,325,350 3,351,558 3,154,625 Minor Capital 234,002 76,696 292,300 211,620 144,300
Debt Service 201,013 128,854 336,436 336,436 281,443
TOTAL EXPENDITURES $ 4,855,415 $ 4,756,688 $ 5,673,213 $ 5,627,973 $ 5,392,647
EXPENDITURES BY PROGRAM
Wastewater (161) $ 289,860 $ 353,395 $ 454,949 $ 448,314 $ 306,470 Water (162) 2,331,908 2,408,233 2,613,753 2,660,791 2,724,797 Storm Water (163) 280,556 258,798 340,720 266,187 323,384 Facility Maintenance (164) 1,112,437 914,572 1,206,002 1,252,348 1,051,935 Streets (165) 794,870 765,623 1,006,028 907,113 932,483 Corporation Yard (166) 32,506 46,802 39,254 81,368 40,951 Water Conservation (167) 13,278 9,265 12,507 11,852 12,627 TOTAL EXPENDITURES BY PROGRAM $ 4,855,415 $ 4,756,688 $ 5,673,213 $ 5,627,973 $ 5,392,647
FUNDING SOURCES
General Fund $ 1,369,637 $ 1,233,232 $ 1,427,446 $ 1,569,603 $ 1,290,761 Equipment Replacement 21,808 21,808 81,828 81,828 60,000 Wastewater Fund 570,416 612,193 780,669 714,501 629,854 Water Fund 2,331,908 2,408,233 2,606,253 2,660,790 2,724,797 Gas Tax Fund 198,053 199,834 385,450 321,200 309,450
Local Transportation Fund 7,740 18,199 80,000 65,000 80,000 Water Conservation Fund 13,278 9,265 12,507 11,852 12,627 Subsidized Senior Transportation Fund 901 1,088 1,000 1,000 1,000 Street Rehabilitation and Repair Fund 341,674 252,837 268,060 202,199 284,158 Transportation DIF 7,500
Storm Water DIF 7,500
Wastewater DIF 7,500
Water DIF 7,500
TOTAL FUNDING SOURCES $ 4,855,415 $ 4,756,688 $ 5,673,213 $ 5,627,973 $ 5,392,647 FY 2021-22
Department Budgets
85 FULL TIME EQUIVALENT (FTE) PERSONNEL FY 2021-22 FY 2022-23 Public Works Director 1.00 1.00
Management Analyst 1.00 1.00
Capital Improvement Project Manager 1.00 1.00
Senior Engineer 1.00 1.00
Engineering Tech. 1.00 -
Assistant Engineer - 1.00
Public Works Supervisor 1.00 1.00
Maintenance Worker III 1.00 1.00
Maintenance Worker III (underfilled - Maintenance Worker I) 1.00 1.00 Maintenance Worker II 1.00 1.00
Maintenance Worker II (underfilled - Maintenance Worker I) 1.00 1.00 Maintenance Specialist 1.00 1.00
Maintenance Worker I 3.00 3.00
Fleet Maintenance Coordinator 1.00 1.00
Administrative Assistant II 0.75 0.75
Janitor 0.63 0.63
TOTAL POSITIONS 16.38 16.38
Department Budgets
86 NON-DEPARTMENTAL
Overview
In addition to expenditures that are directly related to departmental operations, there are also significant expenditures that are not directly attributable to a particular department. The largest of the nondepartmental expenditures is related to the City’s contract with the Five Cities Fire Authority for fire protection and suppression services. The FY 2022-23 contract totals $2.015 million and reflects no increase from FY 2021-22. Other non-departmental expenditures for FY 2022-23 include unfunded pension liability cost ($1,127,734), insurance ($399,200), and contract City Attorney legal services ($220,000). Expenditures under the American Rescue Plan Act of 2021, in which the City’s share is $1.61 million for FY 2022-23 is also included in this Non-Departmental category.
FINANCIALS
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
EXPENDITURES BY CATEGORY
Salaries and Benefits $ 995,805 $ 1,331,626 $ 1,219,504 $ 1,035,991 $ 1,214,142 Supplies and Services 2,932,757 3,882,656 4,572,325 3,931,994 4,601,110 Minor Capital 420,712
Debt Service 13,400 13,400 10,825
TOTAL EXPENDITURES $ 3,928,562 $ 5,214,282 $ 5,805,229 $ 5,402,097 $ 5,826,077
EXPENDITURES BY PROGRAM
Non-Departmental (000& 182) $ 3,928,562 $ 5,214,282 $ 5,805,229 $ 5,402,097 $ 5,826,077 TOTAL EXPENDITURES BY PROGRAM $ 3,928,562 $ 5,214,282 $ 5,805,229 $ 5,402,097 $ 5,826,077
FUNDING SOURCES
General Fund $ 3,656,289 $ 4,362,804 $ 5,392,922 $ 5,165,463 $ 5,513,214 Wastewater Fund 149,575 210,615 121,938 89,695 107,019
Water Fund 77,290 418,673 182,869 136,939 155,844
Street Rehab and Repair Fund 45,408 222,190 100,000 10,000 50,000 Fire DIF 7,500
TOTAL FUNDING SOURCES $ 3,928,562 $ 5,214,282 $ 5,805,229 $ 5,402,097 $ 5,826,077 FY 2021-22
Department Budgets
87 FUND
INFORMATION
Fund Information
90 GENERAL FUND (INCLUDES EQUIPMENT REPLACEMENT FUND)
GENERAL FUND SUMMARY
SOURCES OF FUNDING
FY 2022-23
REVISED
REVENUES
Property Tax $ 5,381,000
Sales Tax $ 6,004,000
Cannabis Tax $ 1,632,000
Transient Occupancy Tax $ 750,000
Other Taxes $ 1,014,200
Licenses & Permits $ 400,000
Fines $ 53,700
Use of Money and Property $ 227,300
Other Agencies $ 1,794,963
Charges for Current Services $ 899,820
Transfers In $ 791,600
TOTAL REVENUES $ 18,948,583
EXPENDITURES
Administrative Services $ 618,049
City Manager's Office $ 1,303,754
Community Development $ 1,154,817
Parks and Recreation $ 477,287
Police $ 5,971,067
Public Works $ 1,350,761
Non-Departmental $ 5,513,214
Capital Improvement Plan $ 2,130,000
Transfers Out $ 180,600
TOTAL EXPENDITURES $ 18,699,549
REVENUES OVER / (UNDER) EXPENDITURES $ 249,034
Fund Information
91 GENERAL FUND OPERATIONS BY DEPARTMENT
FY 2022-23 REVISED BUDGET $18,699,549
Fund Information
92 CAPITAL PROJECTS, SPECIAL REVENUE AND ENTERPRISE FUND
RESOURCES
Below is a summary table of all other funds:
10 Parks Construction Fund Special Revenue
11 Capital Projects Fund Capital Projects
15 Underground Utilities Fund Capital Projects
16 Senior Transportation Fund Special Revenue
17 Gas Tax Fund Special Revenue
18 Local Transportation Fund Special Revenue
19 Road Maintenance and Rehabilitation Special Revenue
20 Street Rehabilitation and Repair Fund Special Revenue 31 CDBG Non-Entitlement Fund Special Revenue
32 HOME Fund Special Revenue
35 COPS Grant Fund Special Revenue
43 State Mandated ADA Fund Special Revenue
50 Transportation Development Impact Fee Fund Special Revenue 51 Law Enforcement Development Impact Fee Fund Special Revenue 52 Administrative Development Impact Fee Fund Special Revenue 53 Fire Protection Development Impact Fee Fund Special Revenue 54 Stormwater Development Impact Fee Fund Special Revenue 55 Wastewater Development Impact Fee Fund Special Revenue 56 Parks Facility Development Impact Fee Fund Special Revenue 57 Recreation Development Impact Fee Fund Special Revenue 58 Water Development Impact Fee Fund Special Revenue
80 Wastewater Fund Enterprise
81 Water Fund Enterprise
82 Water Conservation Fund Special Revenue
Fund # FUND NAME FUND TYPE
Fund Information
93 CAPITAL PROJECTS
CAPITAL PROJECTS FUND (11)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ - $ - $ - $ - $ -
Revenues:
Interest $ - $ - $ - $ - $ -
Revenue from Other Agencies 339,540 107,006
Transfers In 475,595 3,749,950 2,212,911 3,045,000
Total Revenues $ - $ 815,135 $ 3,749,950 $ 2,319,917 $ 3,045,000 Expenditures:
Capital Projects $ - $ 815,135 $ 3,749,950 $ 2,319,917 $ 3,045,000 Total Expenditures $ - $ 815,135 $ 3,749,950 $ 2,319,917 $ 3,045,000 Ending Reserves $ - $ - $ - $ - $ -
FISCAL YEAR 2021-22
The Capital Projects Fund is used for all capital improvement projects, except for Fund 20 Street Rehabilitation and Repair and the Enterprise Fund capital improvement projects that are included in those respective funds. Capital transfers are made to the Capital Projects Fund to finance capital improvement projects.
UNDERGROUND UTILITIES
The Underground Utilities Fund accounts for underground utility developer fees restricted to the placement of utility lines underground in accordance with City Council priorities set by resolution.
UNDERGROUND UTILITIES FUND (15)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 222,854 $ 226,449 $ 227,521 $ 227,521 $ 228,521 Revenues:
Interest $ 3,595 $ 1,072 $ 4,000 $ 1,000 $ 4,000
Total Revenues $ 3,595 $ 1,072 $ 4,000 $ 1,000 $ 4,000
Expenditures:
Total Expenditures $ - $ - $ - $ - $ -
Ending Reserves $ 226,449 $ 227,521 $ 231,521 $ 228,521 $ 232,521 FISCAL YEAR 2021-22
Fund Information
94 PARKS CONSTRUCTION
PARKS CONSTRUCTION FUND (10)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 28,940 $ 33,820 $ 36,531 $ 36,531 $ 27,231 Revenues:
Interest $ 543 $ 167 $ 500 $ 200 $ 500
Park In-Lieu Fee 55,021 11,004 10,000 8,000 10,500
Total Revenues $ 55,564 $ 11,171 $ 10,500 $ 8,200 $ 11,000 Expenditures:
Supplies and Services $ 8,460 $ 8,460 $ 9,000 $ 8,500 $ 9,000 Capital Projects 42,224
Transfers Out 9,000 9,000
Total Expenditures $ 50,684 $ 8,460 $ 18,000 $ 17,500 $ 9,000 Ending Reserves $ 33,820 $ 36,531 $ 29,031 $ 27,231 $ 29,231 FISCAL YEAR 2021-22
This fund receives Park-In-Lieu fees from developers and is restricted to the acquisition, construction, major improvements, and rehabilitation.
SUBSIDIZED SENIOR TRANSPORTATION
The Subsidized Senior Transportation Fund accounts for expenditures related to the Senior Transportation program funded by Local Transportation Funds.
SUBSIDIZED SENIOR TRANSPORTATION (16)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 14,101 $ 18,459 $ 22,467 $ 22,467 $ 26,467 Revenues:
Interest $ 259 $ 96 $ - $ - $ -
LTF - Subsidized Senior Transportation 5,000 5,000 5,000 5,000 5,000 Total Revenues $ 5,259 $ 5,096 $ 5,000 $ 5,000 $ 5,000
Expenditures:
Supplies and Services $ 901 $ 1,088 $ 1,000 $ 1,000 $ 1,000 Total Expenditures $ 901 $ 1,088 $ 1,000 $ 1,000 $ 1,000 Ending Reserves $ 18,459 $ 22,467 $ 26,467 $ 26,467 $ 30,467 FISCAL YEAR 2021-22
Fund Information
95 GAS TAX
GAS TAX (17)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 272,119 $ 399,252 $ 450,629 $ 450,629 $ 144,107 Revenues:
Interest $ 5,530 $ 2,220 $ 5,000 $ 3,000 $ 5,000
Gas Tax 307,486 303,424 358,583 358,583 365,695
Gas Tax Loan Repayment 15,214
Total Revenues $ 328,230 $ 305,644 $ 363,583 $ 361,583 $ 370,695 Expenditures:
Supplies and Services $ 198,052 $ 199,835 $ 381,150 $ 317,200 $ 305,150 Minor Capital 4,300 4,000 4,300
Capital Projects 45
Transfers Out 3,000 54,432 223,000 346,905 153,000
Total Expenditures $ 201,097 $ 254,267 $ 608,450 $ 668,105 $ 462,450 Ending Reserves $ 399,252 $ 450,629 $ 205,762 $ 144,107 $ 52,352 FISCAL YEAR 2021-22
The Gas Tax funds are restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs of the public street system. Income is derived from state excise taxes on fuel and is allocated to the City in accordance with Street and Highway Code Section 2103- 2108.
Fund Information
96 LOCAL TRANSPORTATION FUND
LOCAL TRANSPORTATION FUND (18)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 560,118 $ 867,117 $ 1,004,625 $ 1,004,625 $ 561,627 Revenues:
Interest $ 4,027 $ 1,500 $ 1,500 $ 2,000
Local transportation Fund 309,710 344,120 459,000 459,000 468,200 Grants 1,433,891
Total Revenues $ 1,743,601 $ 348,147 $ 460,500 $ 460,500 $ 470,200 Expenditures:
Supplies and Services $ 7,740 $ 18,199 $ 84,500 $ 69,500 $ 84,500 Capital Projects 1,428,862
Transfers Out 192,440 698,300 833,998 160,000
Total Expenditures $ 1,436,602 $ 210,639 $ 782,800 $ 903,498 $ 244,500 Ending Reserves $ 867,117 $ 1,004,625 $ 682,325 $ 561,627 $ 787,327 FISCAL YEAR 2021-22
The Local Transportation Fund accounts for apportioned revenue from the state and is restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs associated with the public street system, as well as transit-related costs. Income derived from state and federal grants generally administered by SLOCOG and Caltrans Local Assistance and include State Highway Account Urban and Regional (USHA and RSHA) Funds.
Fund Information
97 ROAD MAINTENANCE AND REHABILITATION FUND
The Road Maintenance and Rehabilitation Fund includes funding from the recently passed SB 1 gas tax by the State of California. The fund is mandated to separately track the expenditures of the new fees.
ROAD MAINTENANCE AND REHABILITATION (19)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 331,951 $ 260,180 $ 316,641 $ 316,641 $ 424,393 Revenues:
Interest $ 4,860 $ 1,317 $ 4,500 $ 4,500 $ 5,000
Road Maintenance and Rehabilitation 234,391 244,968 264,498 264,498 333,788 Total Revenues $ 239,251 $ 246,285 $ 268,998 $ 268,998 $ 338,788 Expenditures:
Capital Projects $ 311,022 $ - $ - $ -
Transfers Out 189,824 241,000 161,246 299,000
Total Expenditures $ 311,022 $ 189,824 $ 241,000 $ 161,246 $ 299,000 Ending Reserves $ 260,180 $ 316,641 $ 344,639 $ 424,393 $ 464,181 FISCAL YEAR 2021-22
Fund Information
98 STREET REHABILITATION AND REPAIR
STREET REHABILITATION AND REPAIR (20)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 11,641,129 $ 7,047,849 $ 4,137,642 $ 4,137,642 $ 9,417,270 Revenues:
Interest $ 18,227 $ 3,928 $ 15,000 $ 15,000 $ 15,000
Miscellaneous 17,400 28,500 20,000 60,000 20,000
Proceeds of Long Term Debt 10,000,000
Transfers In 248,810 30,000 30,000 80,000
Total Revenues $ 35,627 $ 281,238 $ 65,000 $ 10,105,000 $ 115,000 Expenditures:
Salaries and Benefits $ 179,911 $ 178,583 $ 188,310 $ 197,899 $ 204,408 Supplies and Services 207,171 296,444 179,750 14,300 129,750 Capital Projects 4,241,826 2,716,418 3,930,000 4,613,173 3,380,000 Transfers Out
Total Expenditures $ 4,628,907 $ 3,191,445 $ 4,298,060 $ 4,825,372 $ 3,714,158 Ending Reserves $ 7,047,849 $ 4,137,642 $ (95,418) $ 9,417,270 $ 5,818,112 FISCAL YEAR 2021-22
The Street Rehabilitation and Repair Fund is generated by voter approved Measure K-14 bond sales and is used for the rehabilitation and repair of local streets.
Fund Information
99 COMMUNITY DEVELOPMENT BLOCK GRANT
The Community Development Block Grant (CDBG) Non-Entitlement funds may be used for economic development, housing or public service projects which primarily benefit low- and moderate-income residents.
HOME GRANT
The Home Investment Partnership Program (HOME) funds can be used for First Time Homebuyer Program, First Time Homebuyer Project, Owner Occupied Rehabilitation Program, Rental Rehabilitation, Rental New Construction Project, and Tenant-Based Rental Assistance Programs.
COMMUNITY DEVELOPMENT BLOCK GRANT (31)
Non-Entitlement FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ (78,031) $ (48,641) $ (22,230) $ (22,230) $ (54,865) Revenues:
CDBG - Non-Entitlement $ 1,575,950 $ 350,655 $ 42,993 $ 1,654,088 $ - Total Revenues $ 1,575,950 $ 350,655 $ 42,993 $ 1,654,088 $ - Expenditures:
Supplies and Services $ 395,093 $ 159,662 $ - $ 32,635 $ - Transfers Out 1,151,467 164,582 42,993 1,654,088
Total Expenditures $ 1,546,560 $ 324,244 $ 42,993 $ 1,686,723 $ - Ending Reserves $ (48,641) $ (22,230) $ (22,230) $ (54,865) $ (54,865) FISCAL YEAR 2021-22
HOME GRANT (32)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 131,872 $ (300,466) $ (300,466) $ (300,466) $ - Revenues:
Transfer In $ - $ - $ - $ 300,466 $ -
Total Revenues $ - $ - $ - $ 300,466 $ -
Expenditures:
Total Expenditures $ - $ - $ - $ - $ -
Reductions/Additions to Reserves $ (432,338) $ - $ - $ - $ - Ending Reserves $ (300,466) $ (300,466) $ (300,466) $ - $ - FISCAL YEAR 2021-22
Fund Information
100
POLICE GRANT
The purpose of the Police Grants Fund is to receive and track all Police Department State grant revenue and expenditures in accordance with prescribed regulations. Revenue for this fund is comprised of grants from the COPS/SLESF Grant. The Citizens Option for Public Safety Program's Supplemental Law Enforcement Services Fund (COPS/SLESF) grant was established in 1996.
Compliant cities are allocated a proportionate share of COPS funds by the State for the exclusively purpose of funding supplemental front-line law enforcement services. Under the standard grant program allocation, the City of Grover Beach is eligible to receive a minimum grant amount of $100,000 each year, with additional proportionate share based on population estimates determined by the California Department of Finance. Funds for this program cannot supplant existing funding and are to be used for personnel and/or equipment. While the COPS programs are intended to be on-going and permanent, there is no guarantee that continued funding will be available.
POLICE GRANTS (35)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 302,475 $ 339,885 $ 235,662 $ 235,662 $ 307,204 Revenues:
State Grants $ 160,048 $ 156,727 $ 160,000 $ 160,000 $ 165,000 Interest Income 5,485 1,168 5,000 5,000 5,000
Total Revenues $ 165,533 $ 157,895 $ 165,000 $ 165,000 $ 170,000 Expenditures:
Supplies and Services $ 90,066 $ 69,687 $ 60,000 $ 68,458 $ 60,000 Minor Capital 38,057 192,431 20,000 25,000 20,000
Total Expenditures $ 128,123 $ 262,118 $ 80,000 $ 93,458 $ 80,000 Ending Reserves $ 339,885 $ 235,662 $ 320,662 $ 307,204 $ 397,204 FISCAL YEAR 2021-22
Fund Information
101
STATE MANDATED ADA FUND
The State Mandated ADA Fund accounts for the State Mandated Disability and Education Fee (SB 1186 Steinberg). Cities are required to collect four dollars from every business license or equivalent instrument. Cities are required to transmit thirty percent of every dollar to the State. Cities keep seventy percent of every dollar to be used for ADA Certified Access Specialists Program.
STATE MANDATED ADA FUND (43)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 11,730 $ 11,565 $ 10,954 $ 10,954 $ 10,954 Revenues:
State Mandated ADA Fee $ 5,835 $ 5,389 $ 6,000 $ 6,000 $ 6,000 Total Revenues $ 5,835 $ 5,389 $ 6,000 $ 6,000 $ 6,000
Expenditures:
Transfers Out $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000
Total Expenditures $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Ending Reserves $ 11,565 $ 10,954 $ 10,954 $ 10,954 $ 10,954 FISCAL YEAR 2021-22
Fund Information
102
TRANSPORTATION DIF
The Transportation Development Impact Fee Fund accounts for fees generated by development for the construction of transportation improvements.
LAW ENFORCEMENT DIF
The Law Enforcement Development Impact Fee Fund accounts for fees generated by development.
These funds may be used for law enforcement improvements related to expansion.
TRANSPORTATION DIF (50)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 67,858 $ 110,498 $ 131,468 $ 131,468 $ 79,169 Revenues:
Interest $ 1,491 $ 592 $ 1,200 $ 1,000 $ 1,300
Transportation DIF 41,149 20,378 30,000 30,000 30,000
Total Revenues $ 42,640 $ 20,970 $ 31,200 $ 31,000 $ 31,300 Expenditures:
Supplies and Services $ - $ - $ 7,500 $ - $ -
Transfers Out 124,500 83,299
Total Expenditures $ - $ - $ 132,000 $ 83,299 $ -
Ending Reserves $ 110,498 $ 131,468 $ 30,668 $ 79,169 $ 110,469 FISCAL YEAR 2021-22
LAW ENFORCEMENT DIF (51)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 6,909 $ 9,401 $ 10,364 $ 10,364 $ 11,514 Revenues:
Interest $ 132 $ 47 $ 150 $ 150 $ 150
Law Enforcement DIF 2,360 916 3,000 1,000 3,000
Total Revenues $ 2,492 $ 963 $ 3,150 $ 1,150 $ 3,150
Expenditures:
Supplies and Services $ - $ - $ 7,500 $ - $ -
Total Expenditures $ - $ - $ 7,500 $ - $ -
Ending Reserves $ 9,401 $ 10,364 $ 6,014 $ 11,514 $ 14,664 FISCAL YEAR 2021-22
Fund Information
103
ADMINISTRATIVE DIF
The Administrative Development Impact Fee Fund accounts for fees generated by development.
These funds may be used for Administrative improvements related to expansion.
FIRE DIF
The Fire Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Fire improvements related to expansion.
ADMINISTRATIVE DIF (52)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 17,227 $ 20,727 $ 22,305 $ 22,305 $ 23,405 Revenues:
Interest $ 308 $ 103 $ 300 $ 100 $ 300
Law Enforcement DIF 3,192 1,475 3,200 1,000 3,200
Total Revenues $ 3,500 $ 1,578 $ 3,500 $ 1,100 $ 3,500
Expenditures:
Supplies and Services $ - $ - $ 7,500 $ - $ -
Total Expenditures $ - $ - $ 7,500 $ - $ -
Ending Reserves $ 20,727 $ 22,305 $ 18,305 $ 23,405 $ 26,905 FISCAL YEAR 2021-22
FIRE DIF (53)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 4,036 $ 9,145 $ 11,054 $ 11,054 $ 13,154 Revenues:
Interest $ 107 $ 48 $ 150 $ 100 $ 150
Fire DIF 5,002 1,861 5,000 2,000 5,000
Total Revenues $ 5,109 $ 1,909 $ 5,150 $ 2,100 $ 5,150
Expenditures:
Supplies and Services $ - $ - $ 7,500 $ - $ -
Total Expenditures $ - $ - $ 7,500 $ - $ -
Ending Reserves $ 9,145 $ 11,054 $ 8,704 $ 13,154 $ 18,304 FISCAL YEAR 2021-22
Fund Information
104
STORMWATER DIF
The Stormwater Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Stormwater related expansion.
WASTEWATER DIF
The Wastewater Development Impact Fee Fund accounts for fees generated by development. These funds may be used for wastewater related expansion.
STORMWATER DIF (54)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 94,532 $ 114,311 $ 120,651 $ 120,651 $ 127,651 Revenues:
Interest Income $ 1,710 $ 557 $ 2,000 $ 2,000 $ 2,000
Stormwater DIF 18,069 5,783 10,000 5,000 10,000
Total Revenues $ 19,779 $ 6,340 $ 12,000 $ 7,000 $ 12,000 Expenditures:
Supplies and Services $ - $ - $ 7,500 $ - $ -
Total Expenditures $ - $ - $ 7,500 $ - $ -
Ending Reserves $ 114,311 $ 120,651 $ 125,151 $ 127,651 $ 139,651 FISCAL YEAR 2021-22
WASTEWATER DIF (55)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 565,851 $ 651,773 $ 281,484 $ 281,484 $ 214,839 Revenues:
Interest Income $ 9,730 $ 2,810 $ 500 $ 5,000 $ 5,000
Wastewater DIF 76,192 18,779 50,000 25,000 50,000
Total Revenues $ 85,922 $ 21,589 $ 50,500 $ 30,000 $ 55,000 Expenditures:
Supplies and Services $ - $ - $ 7,500 $ - $ -
Transfers Out 391,878 85,000 96,645 85,000
Total Expenditures $ - $ 391,878 $ 92,500 $ 96,645 $ 85,000 Ending Reserves $ 651,773 $ 281,484 $ 345,195 $ 214,839 $ 184,839 FISCAL YEAR 2021-22
Fund Information
105
PARKS FACILITIES DIF
The Parks Facilities Development Impact Fee Fund accounts for fees generated by development.
These funds may be used for Parks Facilities related expansion.
RECREATION FACILITIES DIF
The Recreation Facilities Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Recreation related expansion.
PARKS FACILITIES DIF (56)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 521,985 $ 478,075 $ 475,128 $ 475,128 $ 371,584 Revenues:
Interest Income $ 8,405 $ 2,264 $ 8,000 $ 5,500 $ 8,000 Parks Facilities DIF 70,851 27,729 71,000 70,000 71,000 Total Revenues $ 79,256 $ 29,993 $ 79,000 $ 75,500 $ 79,000 Expenditures:
Supplies and Services $ - $ - $ 7,500 $ - $ -
Capital Projects 123,166
Transfers Out 32,940 225,000 179,044 175,000
Total Expenditures $ 123,166 $ 32,940 $ 232,500 $ 179,044 $ 175,000 Ending Reserves $ 478,075 $ 475,128 $ 321,628 $ 371,584 $ 275,584 FISCAL YEAR 2021-22
RECREATION FACILITIES (57)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 72,709 $ 86,651 $ 92,030 $ 92,030 $ 97,230 Revenues:
Interest Income $ 1,275 $ 422 $ 1,500 $ 200 $ 1,500
Recreation DIF 12,667 4,957 12,000 5,000 12,000
Total Revenues $ 13,942 $ 5,379 $ 13,500 $ 5,200 $ 13,500 Expenditures:
Supplies and Services $ 7,500 $ 51,000
Capital Projects
Total Expenditures $ - $ - $ 7,500 $ - $ 51,000
Ending Reserves $ 86,651 $ 92,030 $ 98,030 $ 97,230 $ 59,730 FISCAL YEAR 2021-22
Fund Information
106
WATER DIF
The Water Development Impact Fee Fund accounts for fees generated by development. These funds may be used for water related expansion.
WATER CONSERVATION FUND
The Water Conservation Fund provides water conservation rebates to water customers for turf removal, smart irrigation, low flow toilet installations, and energy efficient washing machines.
WATER DIF (58)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ - $ - $ 17,376 $ 17,376 $ -
Revenues:
Interest Income $ 520 $ - $ - $ -
Water DIF 60,817 17,376 39,000 31,500 32,000
Total Revenues $ 61,337 $ 17,376 $ 39,000 $ 31,500 $ 32,000 Expenditures:
Supplies and Services $ 7,500
Transfers Out 61,337 31,500 48,876 32,000
Total Expenditures $ 61,337 $ - $ 39,000 $ 48,876 $ 32,000 Ending Reserves $ - $ 17,376 $ 17,376 $ - $ -
FISCAL YEAR 2020-21
WATER CONSERVATION (82)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 393,685 $ 386,654 $ 379,202 $ 379,202 $ 367,850 Revenues:
Interest Income $ 6,247 $ 1,813 $ 3,000 $ 500 $ 3,000
Water Conservation Penalty
Total Revenues $ 6,247 $ 1,813 $ 3,000 $ 500 $ 3,000
Expenditures:
Salaries and Benefits $ 6,100 $ 6,465 $ 6,632 $ 6,827 $ 6,752 Supplies and Services 7,178 2,800 5,875 5,025 5,875
Total Expenditures $ 13,278 $ 9,265 $ 12,507 $ 11,852 $ 12,627 Ending Reserves $ 386,654 $ 379,202 $ 369,695 $ 367,850 $ 358,223 FISCAL YEAR 2021-22
Fund Information
107
ENTERPRISE FUNDS
WASTEWATER
WASTEWATER (80)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 3,173,481 $ 3,174,664 $ 3,485,145 $ 3,485,145 $ 3,289,541 Revenues:
Interest Income $ 44,766 $ 14,975 $ 16,000 $ 16,000 $ 16,000 Wastewater Fees 962,052 966,666 985,300 985,300 1,005,000 Other 301,670 367,764 316,100 316,100 321,800
Transfer In 391,878 85,000 96,645 85,000
Total Revenues $ 1,308,488 $ 1,741,283 $ 1,402,400 $ 1,414,045 $ 1,427,800 Expenditures:
Salaries and Benefits $ 653,879 $ 722,503 $ 672,253 $ 653,408 $ 697,366 Supplies and Services 333,530 423,812 559,538 477,245 416,800 Minor Capital 50,727
Debt Service 4,616 1,192 21,828 21,828
Capital Projects 26,559 71,311 776,000 196,168 1,845,000 Transfers Out 209,403 209,601 284,000 261,000 286,000
Total Expenditures $ 1,278,714 $ 1,428,419 $ 2,313,619 $ 1,609,649 $ 3,245,166 Reductions/Additions to Reserves $ (28,591) $ (2,383) $ - $ - $ - Ending Reserves $ 3,174,664 $ 3,485,145 $ 2,573,926 $ 3,289,541 $ 1,472,175 FISCAL YEAR 2021-22
The Wastewater Fund consists of the City's Wastewater collection system and the South San Luis Obispo County Sanitation District billing. The Wastewater Enterprise Fund serves approximately 5,000 customers. The South San Luis Obispo County Sanitation District (District) sets their fees for the processing of wastewater. The City provides billing services for the District and forwards the collection of fees billed to the district monthly.
In May 2021, the City adopted a 2% increase in fees to cover the costs associated with the wastewater collection system, effective July 1, 2021. This increase will fund needed improvements and upgrades to wastewater system infrastructure. Subsequent 2% increases will be scheduled to go into effect on July 1 of the following four years. FY 2021-22 and FY 2022-23 include 2% increases each year.
The City is proposing the following Wastewater Capital Projects in the FY 2022-23 Budget: FY 2022-23 Sewer Upgrade for Exisitng & Future Flows $ 1,585,000
Front Street Lift Station Upgrades 60,000
Sewer Upgrade for Exisitng Flows 200,000
Total $ 1,845,000
Fund Information
108
WATER
WATER (81)
FY 2019-20 FY 2020-21 ORIGINAL ESTIMATED FY 2022-23
ACTUALS ACTUALS BUDGET ACTUAL REVISED
Beginning Reserves $ 1,731,908 $ 7,268,106 $ 8,193,835 $ 8,193,835 $ 7,927,602 Revenues:
Interest Income $ 45,621 $ 32,760 $ 35,500 $ 35,500 $ 33,300 Water Fees 3,849,924 4,311,419 4,022,900 3,798,000 4,126,200 Proceeds of Long-Term Debt 4,456,000 *
Other 123,607 72,410 139,100 159,269 139,200
Transfers In 1,212,804 164,582 74,493 1,685,588 32,000
Total Revenues $ 9,687,956 $ 4,581,171 $ 4,271,993 $ 5,678,357 $ 4,330,700 Expenditures:
Salaries and Benefits $ 673,764 $ 1,024,022 $ 799,633 $ 784,138 $ 817,841 Supplies and Services 1,825,866 1,999,656 1,967,919 1,983,167 2,081,905 Minor Capital 57,494 51,838 80,000 80,000 80,000
Debt Service 174,589 105,854 292,780 292,780 281,443
Capital Projects 1,119,880 312,721 1,206,393 2,366,088 880,000 Transfers Out 353,203 388,210 494,000 438,417 476,000
Total Expenditures $ 4,204,796 $ 3,882,301 $ 4,840,725 $ 5,944,590 $ 4,617,189 Reductions/Additions to Reserves $ 53,038 $ 226,859 $ - $ - $ - Ending Reserves $ 7,268,106 $ 8,193,835 $ 7,625,103 $ 7,927,602 $ 7,641,113 FISCAL YEAR 2020-21
The Water Fund consists of the City's water system, including water mains, storage reservoirs and water sampling. The Water Enterprise Fund serves approximately 5,000 customers.
In May 2021, the City adopted a 2% increase in fees to cover the costs associated with the water system, effective July 1, 2021. Subsequent 2%, 3%, 4% and 4% increases will be scheduled to go into effect the following four years with Council retaining the ability to enact a lower rate on an annual basis based on expected needs. The FY 2022-23 Budget includes a 2% increase. The increase in rates will fund needed improvements to water system infrastructure along with the Central Coast Blue recycled groundwater project.
The City is proposing the Following Water Capital Projects in the FY 2022-23 Budget: FY 2022-23 Central Coast Blue $ 730,000
Water Main Zone Valves 25,000
Well Capacity Analysis and Improvements 75,000
Reservoir Maintenance 50,000
Total $ 880,000
Fund Information
109
CAPITAL
PROJECTS
Capital Projects
112
CAPITAL IMPROVEMENT PROGRAM (CIP)
The City staff prepares a CIP document annually that covers the next five fiscal years that includes a list of projects for Council consideration and approval. The CIP document acts as a guide for identifying current and future fiscal requirements. The CIP does not address all of the capital expenditures for the City, but provides a larger scale infrastructure improvements, that are permanent in nature, including transportation systems, utilities, water and wastewater systems, and municipal facilities.
The CIP document includes projects that are in excess of $50,000 with a useful life of at least ten years; or a study of at least $50,000 that will lead to such projects or add to the value or capacity of the infrastructure of the City. Projects that are considered operational or routine maintenance are excluded from this program.
The CIP proposes project funding relative to the anticipated availability of fiscal resources and the choice of specific improvements to be achieved throughout the five year plan. The Projected Revenue Summary on page 113 identifies 14 revenue sources and their use by year for FY 2022-23. The total CIP budget for FY 2022-23 is $9,150,000.
The Expenditure Summary on pages 114 and 115 identifies project expenditures in the following five categories: 1) Parks/Community Services, 2) Public Buildings/Facilities, 3) Streets/Storm Drains, 4) Water, and 5) Wastewater. The expenditure summary for FY 2022-23 indicates a total of $9,150,000 in spending within the five project categories. The detailed CIP document can be found on the City’s website which provides further information on the projects planned for FY 2023-27.
Capital Projects
113
CAPITAL IMPROVEMENT PROGRAM
2023 - 2027
Projected Revenue Summary
Fund #
FY 2022
Estimated
Actual
FY 2022
Estimated
Carryover
FY 2023
Budget FY 2024 FY 2025 FY 2026 FY 2027
01 General Fund $22,976 $862,634 $2,130,000 $2,400,000 $2,335,000 $2,435,000 $2,960,000 10 Parks Construction Fund $9,000 $0 $0 $0 $0 $0 $0
15 Underground Utilities Fund $0 $0 $0 $0 $0 $0 $0
17 Gas Tax Fund $0 $0 $150,000 $225,000 $175,000 $255,000 $100,000 18 Local Transportation Fund $59,574 $0 $160,000 $200,000 $100,000 $100,000 $100,000 19 Gas Tax Fund (RMRA) $0 $0 $299,000 $240,000 $240,000 $240,000 $240,000 20 Street Rehab and Repair Bond Fund $220,000 $0 $3,300,000 $3,810,000 $2,180,000 $2,800,000 $2,290,000 50 Transportation Development Impact Fee $0 $0 $0 $0 $0 $0 $0 55 Wastewater Development Impact Fee $0 $85,000 $85,000 $0 $0 $0 $0 56 Parks Facility Development Impact Fee $0 $225,000 $175,000 $0 $0 $0 $0 57 Recreation Facility Development Impact Fee $0 $0 $51,000 $0 $0 $0 $0 80 Wastewater Fund $120,000 $1,365,000 $1,825,000 $1,250,000 $840,000 $930,000 $878,500 81 Water Fund $75,000 $1,152,761 $975,000 $2,445,000 $370,000 $1,268,311 $1,698,123 Other Agency / District $0 $0 $0 $0 $950,000 $0 $0
TOTAL $506,550 $3,690,395 $9,150,000 $10,570,000 $7,190,000 $8,028,311 $8,266,623 Capital Projects
114
CAPITAL IMPROVEMENT PROGRAM
2023 - 2027
Expenditure Summary by Project Category
PARKS / COMMUNITY SERVICES
CIP #
FY 2022
Estimated
Actual
FY 2022
Estimated
Carryover
FY 2023
Budget FY 2024 FY 2025 FY 2026 FY 2027
1002 $0 $0 $0 $0 $0 $200,000 $0
1259 $9,000 $225,000 $226,000 $500,000 $500,000 $1,000,000 $1,000,000 SUBTOTAL $9,000 $225,000 $226,000 $500,000 $500,000 $1,200,000 $1,000,000
PUBLIC BUILDINGS / FACILITIES
CIP #
FY 2022
Estimated
Actual
FY 2022
Estimated
Carryover
FY 2023
Budget FY 2024 FY 2025 FY 2026 FY 2027
3002 $0 $270,000 $405,000 $0 $0 $0 $2,600,000
3003 $82,550 $12,634 $100,000 $0 $100,000 $0 $0
3004 $0 $0 $200,000 $0 $0 $0 $0
3005 $0 $0 $100,000 $0 $0 $0 $0
3393 $0 $0 $0 $50,000 $950,000 $0 $0
SUBTOTAL $82,550 $282,634 $805,000 $50,000 $1,050,000 $0 $2,600,000
STREETS / STORM DRAINS
CIP #
FY 2022
Estimated
Actual
FY 2022
Estimated
Carryover
FY 2023
Budget FY 2024 FY 2025 FY 2026 FY 2027
2003 $0 $100,000 $0 $0 $100,000 $0 $100,000
2004 $0 $0 $90,000 $0 $0 $0 $0
2274 $0 $0 $50,000 $100,000 $50,000 $100,000 $100,000
2285 $0 $0 $0 $1,815,000 $0 $0 $0
2286 $0 $0 $0 $0 $2,100,000 $0 $0
2287 $0 $600,000 $1,874,000 $600,000 $0 $0 $0
2288 $0 $0 $0 $0 $0 $1,730,000 $700,000
2295-14 $220,000 $0 $2,630,000 $0 $0 $0 $0
2295-15 $0 $0 $750,000 $1,250,000 $0 $0 $0
2295-16 $0 $0 $0 $600,000 $0 $0 $0
2295-17 $0 $0 $0 $2,000,000 $20,000 $0 $0
2295-18 $0 $0 $0 $0 $2,200,000 $0 $0
2295-19 $0 $0 $0 $0 $0 $2,820,000 $0
2295-20 $0 $0 $0 $0 $0 $0 $1,150,000
2295-21 $0 $0 $0 $0 $0 $0 $1,200,000
SUBTOTAL $220,000 $700,000 $5,394,000 $6,365,000 $4,470,000 $4,650,000 $3,250,000 Capital Projects
115
2022 - 2026
Expenditure Summary by Project Category - Continued
WATER
CIP #
FY 2022
Estimated
Actual
FY 2022
Estimated
Carryover
FY 2023
Budget FY 2024 FY 2025 FY 2026 FY 2027
4001 $75,000 $917,761 $730,000 $730,000 $0 $318,311 $636,623 4007 $0 $25,000 $25,000 $25,000 $0 $0 $0
4008 $0 $0 $75,000 $0 $0 $0 $0
4015 $0 $0 $0 $0 $180,000 $780,000 $0
4270 $0 $150,000 $0 $150,000 $150,000 $150,000 $150,000 4391 $0 $0 $50,000 $1,500,000 $0 $0 $0
SUBTOTAL $75,000 $1,092,761 $880,000 $2,405,000 $330,000 $1,248,311 $786,623
WASTEWATER
CIP #
FY 2022
Estimated
Actual
FY 2022
Estimated
Carryover
FY 2023
Budget FY 2024 FY 2025 FY 2026 FY 2027
5002 $90,000 $1,360,000 $1,585,000 $0 $0 $0 $0
5003 $30,000 $30,000 $60,000 $0 $0 $0 $0
5005 $0 $0 $0 $150,000 $0 $0 $0
5010 $0 $0 $200,000 $1,000,000 $740,000 $830,000 $530,000 5269 $0 $0 $0 $100,000 $100,000 $100,000 $100,000
SUBTOTAL $120,000 $1,390,000 $1,845,000 $1,250,000 $840,000 $930,000 $630,000 TOTAL $506,550 $3,690,395 $9,150,000 $10,570,000 $7,190,000 $8,028,311 $8,266,623
APPENDIX
Appendix
118
FINANCIAL POLICIES
ADOPTED BY THE CITY COUNCIL – RESOLUTION NO. 20-17
The cornerstone of municipal financial management is a sound policy that sets forth guidelines in the areas of revenues, operating expenditures, investments, reserves, financial reporting, capital improvements, and budgeting. Elected officials and appointed staff are accountable for public funds and responsible for the wise management of municipal finances. The community is entitled to reports that clearly communicate the financial health of the City. The following policies will guide and influence the financial management practices of the City of Grover Beach.
BUDGET POLICIES
The City Manager will provide a proposed Annual Budget to the City Council no later than June 1st of each year, and the City Council will review and adopt an Annual Budget no later than June 30th every year.
The City's budgetary system will be integrated and compatible with the accounting system, and the City Budget will be prepared on a basis in conformance with Generally Accepted Accounting Principles (GAAP).
The Mid-Year Budget Review will be presented no later than the first regular City Council meeting in March of each year. The Mid-Year Budget Review will include the current status of revenue collections and budget expenditures, economic trends, and state budget deliberations, as well as any proposed amendments necessary to bring the budget back into balance.
Annually, the City may seek the California Society of Municipal Finance Officers (CSMFO) award of Excellence for Municipal Budgeting.
Annually, the City may seek the Government Finance Officers Association (GFOA) Certificate of Achievement for Distinguished Budget Presentation award.
Annually, the City's Comprehensive Annual Financial Report (CAFR) will be prepared by an independent auditor in accordance with Government Auditing Standards issued by the Comptroller General of the United States.
Annually, the City may seek the GFOA Certificate of Achievement for Excellence in Financial Reporting.
Appendix
119
RESOURCES
Resources are defined as revenues collected during one fiscal year, as well as resources carried over from prior years. Revenues may be ongoing or one-time in nature, but resources from prior years are always one-time in nature. The following policies shall apply to resources:
• One-time resources will be used for one-time expenditures or enhancement of reserves rather than funding ongoing services.
• All revenue forecasts will reflect realistic assessments of future conditions. • Regular reports comparing actual to budgeted revenues will be prepared by City staff for the City Council.
• All potential grants shall be carefully reviewed for matching and/or maintenance-of-effort requirements.
• Intergovernmental grants, which are grants will be evaluated to determine the long-term operating and maintenance costs associated with the grant.
EXPENDITURES
Expenditures are payments made to employees, vendors, or contractors supplying goods or services to the City, except as provided in GBMC Section 2107.1; all expenditures must be made consistent with appropriations approved by the City Council in the Annual Appropriation Resolution. • Regular reports comparing budget expenditures to actual expenditures will be prepared by City staff for the City Council's information.
• When new operating programs or capital projects are proposed, staff will provide the City Council with an analysis of the one-time and ongoing costs associated with the program or project. • With the exception of initial expenditures for the creation of new programs or during periods of economic distress which result in reductions in local revenues or state funding for municipal activities, all ongoing costs for operating programs shall be paid from the ongoing revenues.
RESERVES
It shall be the City's policy to draw down reserves consistent with the following priorities:
• The use of reserves for one-time expenditures that generates ongoing cost savings or cost avoidance.
• The use of reserves for one-time expenditures that generates ongoing revenue enhancements. • The use of reserves for a one-time expenditure that leverages the expenditure of significant public or private investment in the City by other entities.
• The use of reserves to offset shortfalls in the collection of revenues. • The use of reserves to offset unanticipated increases in expenditures for current programs or projects.
Appendix
120
GENERAL FUND RESERVES
The General Fund Reserves for the City is established as a minimum of 15% of operating expenditures with a goal of at least 25%. The minimum reserves of 15% is comprised of a General Reserve and Emergency Reserve as described below:
GENERAL FUND-GENERAL RESERVE
The City hereby establishes a General Reserve of 10% of the current fiscal year's General Fund operating budget. The General Fund reserve should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding to meet operational appropriation requirements in the event that the City experiences shortfalls in the collection of General Fund revenues or major unanticipated increases in expenditures.
Any transfer of funds from the General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.
GENERAL FUND-EMERGENCY RESERVE
The City hereby establishes an Emergency Reserve of not less than 5% of the General Fund operating budget. This reserve is established for the purpose of providing emergency funding as a result of a declared emergency or to fund an unanticipated urgent event affecting or threatening the public health, safety, and welfare of the City of Grover Beach.
Any transfer of funds from the Emergency Reserve may only be made upon City Council's approval of an amendment to the Annual Appropriation Resolution, subsequent to the City Council's finding that the guidelines established in the Resolution have been met.
WATER ENTERPRISE FUND-GENERAL RESERVE
The City hereby establishes a General Reserve of not less than 10% of the current fiscal year Water Fund operating budget. The Water Fund's General Reserve should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding to meet operational appropriation requirements in the event that the City experiences shortfalls in the collection of Water Fund revenues or unanticipated increases in expenditures.
Any transfer of funds from the Water Fund's General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.
WASTEWATER ENTERPRISE FUND-GENERAL RESERVE
The City hereby establishes a General Reserve of not less than 10% of the current fiscal year Wastewater Fund operating budget. The Wastewater Fund Reserves should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding Appendix
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to meet operation appropriation requirements in the event the City experiences shortfalls in the collection of Wastewater Fund revenues or unanticipated increases in expenditures.
Any transfer of funds from the Wastewater Fund's General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.
APPROPRIATION TRANSFER AUTHORITY
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget.
• Transfers between line items in the same program may be made by department heads. • Transfers between programs in the same fund may be made by department heads with City Manager approval.
• Transfer between department budgets within the same fund may only be made by the City Council. • Transfers between different funds may only be made by the City Council. • Transfers to or from employee services line items may be made by the City Manager.
CAPITAL IMPROVEMENT PROGRAM
Annually, City staff will propose a Capital Improvement Program covering the subsequent five fiscal years.
The plan will recommend specific funding of projects for the next three years and identify projects for further consideration.
The Capital Improvement Program will include a listing of projects for further consideration by the City Council. Such projects will be those which are determined to merit further study, but lacking funding sources.
Capital improvements will include Facilities and Infrastructure improvements which are valued over $50,000.
Capital Improvement Program projects will be reviewed to determine the best method of financing the project. City Council will determine whether the project is funded on a "pay as you go" basis or a debt instrument.
The City will continue imposing development impact fees which ensure that a new development pays its fair share of the increased service capacity.
CARRY OVER TO NEXT FISCAL YEAR
To the extent funds are available, any unused appropriations at the end of the fiscal year 2021-22 active capital improvement projects and multi-year programs are hereby re-appropriated for continued use in fiscal year 2022-23.
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Any remaining balances in approved grant programs and capital improvement projects at the end of fiscal year 2021-22 are hereby re-appropriated for continuing use in fiscal year 2022-23 and all estimated revenues from such approved grants and capital improvement projects for fiscal year 2021-22 that are not realized by fiscal year-end are authorized to be continued until the grant period ends.
To the extent funds are available, General Fund encumbrances whereby contracts remained active at the close of fiscal year 2021-22 are carried forward and any corresponding remaining balance of special one-time authorized appropriations are also carried forward with the approval of the City Manager and Administrative Services Director.
FISCAL MANAGEMENT
It is the City's policy to minimize the subsidization by the general taxpayer of the costs of services provided to the public which are of specific benefit, rather than general benefit. The City Council shall annually consider establishing specific cost-recovery policies related to such costs to be reflected in the Master Fee Schedule.
Consistent with the State Constitution, charges for services will not exceed the cost reasonably borne to deliver those services. Costs reasonably borne may include direct and in-direct costs, as well as reasonable reserves or amortization of equipment associated with the provision of the services.
The City will annually review the Master Fee Schedule to ensure that each user fee is reflective of its intended cost-recovery percentage and will revise the fees as needed or revise the cost-recovery percentage.
The City will maintain water and sewer rate structures which are adequate to ensure that these enterprise funds remain firmly and separately self-supporting, including the cost of operation, infrastructure maintenance and replacement, indirect cost recovery, and debt service.
Whenever required by bond indentures, the City will determine whether debt service coverage ratios are being met. Whenever coverage ratios are not being met, staff will recommend rate increases or expenditure reductions or some combination of the two, in order to meet coverage ratios.
An independent firm of certified public accountants will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) which will be incorporated into the Comprehensive Annual Financial Report.
INVESTMENTS
The City will continue to have a written investment policy approved by City Council resolution annually.
The policy for investments in priority order are safety, liquidity and yield.
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The City Council will receive reports on the cash position and performance of City investments at a minimum of a quarterly basis.
CAPITAL ASSETS
Future maintenance needs for all new capital facilities will be fully costed out.
All equipment and facility maintenance needs for the next five years will be projected and updated annually.
All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.
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GANN APPROPRIATION LIMIT
City of Grover Beach Gann Appropriations Limit as defined in Article XIII-B of the California State Constitution
The voters of California, during a special election in 1979, approved Article XIII-B of the California State Constitution. Informally known as the "Gann Initiative," Article XIII-B provides limits regarding the total amount of appropriation in any fiscal year from "the proceeds of taxes." The State Legislature, in 1980, added Section 9710 to the Government Code, providing that the governing body of each local jurisdiction must establish, by resolution, an appropriations limit for the following year.
The appropriation limit for any fiscal year was equal to the previous year's limit, adjusted for population changes and the changes in the US Consumer Price Index (or California per capita personal income, if smaller). The necessary statistical information is provided by the California Department of Finance.
However, the original Article XIII-B (Proposition 4) and its implementing legislation were modified by Proposition 111 and SB 88 by the voters in June 1980. The changes were incorporated in the FY 1990-91 appropriations limits. Beginning with the fiscal year 1990-91 appropriations limit, a city may choose annual adjustment factors. The adjustment factors include the growth in the California per capita income or the growth in the non-residential assessed valuation due to construction within the City and the population growth within the county or the City.
The table below provides the calculation for the appropriations limit for fiscal year 2022-23, as well as the total appropriations subject to the limit. The adjustment factors utilized for the fiscal year 2022-23 calculation include the growth in California per capita income and the population growth within the City of Grover Beach. These two factors yielded the most favorable appropriations limit for the City. The City's appropriations subject to the limit ($12.07 million) are below the appropriation limit itself ($12.57 million) as shown in the calculation below.
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