Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about futureevents. Certainaccountingestimatesareparticularlysensitivebecauseoftheirsignificancetothe financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the City's financial statements were:
* Fair value measurements of investments
* Actuarial assumptions, accrual and disclosure for pension plans * Depreciation estimates and depreciable lives of property and equipment Certain financial statement disclosure are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the City's financial statements were:
* The disclosure of pensions in Notes 7 to the financial statements which included significant actuarial estimates, liabilities and related plan disclosures @ Contingencies and commitments in Note 10
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. The following material misstatements detected as a result of audit procedures were correct by management:
* New lease and SBITA agreement activity was recorded in the General Fund, Water and Wastewater funds.
* Revenue accruals for CDBG federal grants
* Expense accruals forthe Wastewater Fund
Honorable Mayor and City Council
City of Grover Beach
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 23, 2024.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters,similartoobtaininga"secondopinion"oncertainsituations. Ifaconsultationinvolvesapplication of an accounting principle to the City of Grover Beach's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
OtherAudit Findings or /ssut>s
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City of Grover Beach's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. The federal awards report and schedules includes the independent auditors report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with GovernmentAuditing Standards, which reports a material weakness finding related to material unrecorded transactions that were identified during the audit. This Single Audit is still in progress as of the date of this communication.
Other Matters
We applied certain limited procedures to the Management Discussion and Analysis, Budgetary comparison schedules - General and Major Special Revenue Funds, the Schedule of Proportionate Share of the Net Pension Liability, and Schedule of Pension Plan Contributions, which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted ofinquiries of management regarding the methods of preparing the information and comparing the information for Honorable Mayor and City Council
City of Grover Beach
consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual nonmajor fund financial statements and Schedule of Debt Service Coverage, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements orto the financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the use of the City Council and management of the City of Grover Beach and is not intended to be, and should not be, used by anyone other than these specified parties.
Sincerely,
Glenn Burdette Attest Corporation
Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: January 27, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: FY 2023-24 Citizens Oversight Committee Report for City Revenue Measures including Measure K-14 Street Repair Bonds, Measure X06 Transaction and Use Tax, and Measure F-20 Transaction and Use Tax
RECOMMENDATION
Receive and file the FY 2023-24 Citizens Oversight Committee Report for City Revenue Measures.
BACKGROUND
On January 16, 2025, the Citizens Oversight Committee for City Revenue Measures held its annual meeting. The Committee consists of community members with a scope of reviewing revenue and expenditures for: Measure K-14 Street Repair Bonds, Measure X-06 (0.5% Transaction and Use Tax), and Measure F-20 (1% Transaction and Use Tax) and submitting an annual report to the Council. In attendance at the meeting were the following committee members:
Chair Anne Holden, Vice Chair Jonathon Reynolds, and committee members Donna De La Rosa and Karen Kass. Committee member Jeff Lee was absent due to illness. Staff in attendance included Assistant City Manager Kristin Eriksson, Administrative Services Director Nick Szamet, Finance Manager Micheal Flores, Capital Projects Manager Erin Wiggin and Deputy City Clerk Nicole Retana. City Attorney Robert Lomeli was also present at the meeting.
During the committee meeting, staff provided a review of Measure K-14 revenue and expenditures.
To date, over 300 blocks of roadway or more than 70% of local streets have been completed since the beginning of the Measure K-14 street rehabilitation program for a total of 16 completed projects. The City is authorized to issue general obligation bonds in the amount up to $48,000,000 to finance improvements to streets within the city. The table below summarizes the revenues and expenditures derived from the Measure K-14 Street Rehabilitation Program.
Staff Report: FY 2023-24 Citizen Oversight Committee Report Page 2 January 27, 2025
In addition to Measure K-14 Street Repair Bonds, the City has two Transactions and Use Taxes approved by voters, Measures X-06 and F-20. Measure X-06, a 0.5% tax approved in 2006, generated $1,204,876 in revenue in FY 2023-24 representing a decline of approximately 10% from FY 2022-23 due to additional funds received in FY 2022-23 that were attributable to prior years. Measure F-20, a 1% tax approved in 2020, generated $2,446,264 in FY 2023-24 which represents a decline of 1% from FY 2022-23. Both Transactions and Use Taxes are general revenues which are deposited into the General Fund and used to support various City services and projects.
Consistent with previous years, staff prepared a draft Citizen Oversight Committee Annual Report which was reviewed by the Committee at the January 16th meeting. The Committee voted 3-1 to approve submission of the report to the Council with Chair Holden and committee members De La Rosa and Kass voting to approve the report and Vice Chair Reynolds voting not to approve.
The financial information cited in the report includes previously audited expenditures along with the audited FY 2023-24 financial information consistent with the Annual Comprehensive Financial Report which is also presented for Council’s review on this agenda.
The final report is shown as shown in Attachment 1 and will be placed on the City’s website pending the Council’s receipt of the report. The report includes a message from the Committee, a message from the City Manager, financial information regarding the status of Measure X-06 and Measure F-20 revenues and Measure K-14 revenues and expenses through June 30, 2024, as well as a map of completed street projects funded by Measure K-14.
FISCAL IMPACT
There is no fiscal impact from this report.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive and file the FY 2023-24 Citizens Oversight Committee Report for the City Revenue Measures; or
2. Provide staff with additional direction.
Revenues
Debt Issued 38,000,000
Interest Income 569,381
Total 38,569,381
Expenditures
Capital
Prior Fiscal Years 30,699,399
FY 2023-24 2,213,929
Non-Capital
Prior Fiscal Years 1,780,344
FY 2023-24 210,543
Total 34,904,214
Staff Report: FY 2023-24 Citizen Oversight Committee Report Page 3 January 27, 2025
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Citizen Oversight Committee Annual Report
City of Grover Beach
Citizen Oversight Committee
Measures X-06 and F-20 Transactions and Use Tax
& K-14 Street Bonds
Report to City Council for Year-Ending June 30, 2024
$JHQGD,WHP1R
Attachment 1
Anne Holden
Donna De La Rosa
Jeff Lee
Karen Kass
Jonathon Reynolds
Matthew Bronson
City Manager
Nick Szamet
Administrative Services
Director
Greg Ray
Public Works Director/
City Engineer
Public Works Dept
154 South 8th Street
Grover Beach, CA
93433
Phone: 805-473-4520
Fax: 805-489-9657
[email protected]
Committee
Members
STAFF
Please visit
www.groverbeach.org
for more information
regarding these
Measures
A Message from the City Manager
Thank you for your interest in the report of the Citizen Oversight Committee for City Revenue Measures. This oversight committee is tasked by the City Council with reviewing revenues and expenditures for City sales Tax Measures X-06, F20, and Measure K-14 general obligation bonds. Measure X-06 is a half-cent sales and Measure F-20 is a one-cent sales and use tax as general revenue to fund City services and projects. Measure K-14 was authorization approved by voters to issue up to $48 million in general obligation bond funding to repair local streets and roads. To date, the City has funded important City services through annual revenue from Measure X-06 and F-20 and has successfully completed sixteen street rehabilitation projects as of June 30, 2024 with repair of over 300 blocks representing more than 70% of local city streets.
Sincerely,
Matthew Bronson, City Manager
A Message from the Citizen Oversight Committee
The Citizen Oversight Committee is pleased to forward its 2024 report on Measures X-06 and F-20 Transactions and Use Tax revenue and the progress of the $48 Million Measure K-14 Street Bond Program. The committee’s job is to carry out the principal duties of ensuring that revenues from these measures have been expended for the purposes set forth in the ballot language, reporting progress annually to the public, and providing a compliance statement.
The funding provided by Measures X-06 and F-20 Transactions and Use Tax is used to support general city services including police, fire, public works, parks and recreation and general city administration. The committee’s task is to review the annual summary of revenues generated from the supplemental sales tax and budgeted expenditures for the fiscal year. The committee reviewed this information, which disclosed no issues or concerns.
The City to date has issued $38 million of the $48 million in approved bonds.
The funding provided by Measure K-14 is a community investment in improving local streets in Grover Beach. The improvements are essential to improve roadway conditions, maintain emergency response times, enhance safety for pedestrians, bicyclists, drivers, and promote economic growth in the City.
The committee reviewed FY 2023-24 Annual Comprehensive Financial Report (ACFR) for both measures as provided in Note 6 — Long Term Liabilities. The committee wishes to report that, to the best of its knowledge, the City is in full compliance with the parameters of Measures X-06 and F-20 in generating general revenues to support general city services and Measure K-14 which states that “The object and specific single purpose of issuing the Bonds is the acquisition, construction and improvement of street improvements throughout the City” (the “Street Improvements”), and the proceeds of the Bonds may only be applied to that purpose.
Summary
In 2006, voters approved Measure X-06, a transactions and use tax at the rate of one-half
percent (0.5%) to be administered by the State Board of Equalization as a general revenue to support City services and projects.
The Fiscal Year Ending in 2024
saw a near 10% decline in
General Sales Tax Revenue
collected as a part of Measure
X-06. This is a real decline in
collected revenues of
$131,283. This follows the regional and national trend of declining sales taxes as a result of moderating price inflation.
Measure X-06
FY Ending Amount % Change
2014 615,900 -0.35%
2015 695,089 12.86%
2016 747,043 7.47%
2017 771,475 3.27%
2018 770,164 -0.17%
2019 884,366 14.83%
2020 1,017,779 15.09%
2021 1,185,109 16.44%
2022 1,215,174 2.54%
2023 1,336,159 9.96%
2024 1,204,876 -9.83%
Average Change
Last 2 Years .07%
Last 5 Years 6.84%
Last 10 Years 6.56%
0 0.2
0.4 0.6
0.8 1
1.2 1.4
1.6 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Millions
Summary
In November 2020, voters approved
Measure F-20, a transactions and
use tax at the rate of one percent
(1.0%) to be administered by the
State Board of Equalization as a
general revenue to support City services and projects.
The Fiscal Year Ending in 2024 saw
a near .25% decline in General
Sales Tax Revenue collected as a
part of Measure F-02. This is a real
decline in collected revenues of
$6,028. This follows the regional
and national trend of declining sales
taxes as a result of moderating price
inflation.
Measure F-20 Status ReCombined Report (Measures X-06 & F-20) FY Ending Amount % Change
2021 572,799
2022 2,351,626 311%
2023 2,452,292 4%
2024 2,446,264 -0.25%
Last 3 Years 105%
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2021
2022
2023
2024
0 0.5
1 1.5
2 2.5
3 3.5
4 2013 2015 2017 2019 2021 2023
Millions
F-20
X-06
Summary
Through funds provided by the
Measure K-14 Street Bond, the
City of Grover Beach has completed sixteen street projects, and work on the seventeenth project is
underway. These projects, outlined in the attached map, provided maintenance and repair of over
300 blocks, representing up to
70% of all local streets.
Measure K-14 Status Report City of Grover Beach
Revenues Street
History of Issuance
March 2015 Bond Sale $5,000,000
April 2016 Bond Sale $8,000,000
December 2017 Bond Sale $15,000,000
January 2022 Bond Sale $10,000,000
Interest & Transfers In $569,381
Total Revenues $38,569,381
Capital Expenditures
Prior Capital Expenditures $30,699,399
FY 2023-24 Expenditures:
Project #2295-15 $469,447
Project #2295-16 $1,656,681
Project #2295-17 $87,800
FY 2023-24 Expenditures $2,213,929
Total Capital Expenditures $32,913,328
Non Capital Expenditures
Prior Non-Capital Expend. $1,780,344
FY 2023-24 Non-Capital Expenses $210,543
Total Non-Capital Expend. $1,990,887
Total Expenditures $34,904,214
Fund Balance June 30, 2024 $3,665,166
(After Accruals)
Map Rev 1/8/2025
Completed Projects
2295-1 thru 2295-16
Current Projects
2295-17
(projects under design or under construction)
1/3/2025 9:31:59 AM Page 1 of 1
Fund Balance Report
City of Grover Beach, CA As Of 06/30/2024
Fund Beginning Balance Total Revenues Total Expenses Ending Balance 201 - Street Rehabilitation and Repair Fund 5,838,954.89 250,682.78 2,424,471.30 3,665,166.37 Report Total: 5,838,954.89 250,682.78 2,424,471.30 3,665,166.37 Project Budget Report
For Expense Accounts
Project Number Project Name Group Period Activity2295-15 Measure K-14 Local Street Rehab and Repair ProjePublic Works 2295-15-58010 Design 6,416.752295-15-58030 Construction 463,030.27 Total 2295-15 - Measure K-14 Local Street Rehab and Repair Project: 469,447.02 2295-16 Measure K-14 Local Street Rehab and Repair ProjePublic Works 2295-16-58010 Design 335,745.612295-16-58030 Construction 1,320,935.57 Total 2295-16 - Measure K-14 Local Street Rehab and Repair Project: 1,656,681.18 2295-17 Measure K-14 Local Street Rehab and Repair ProjePublic Works 2295-17-58010 Design 87,800.402295-17-58030 Construction 0.00 Total 2295-17 - Measure K-14 Local Street Rehab and Repair Project: 87,800.40 Report Total: 2,213,928.60
Date Range 07/01/2023 - 06/30/2024
C i t y o f G r o v e r
B e a c h
California
Annual Comprehensive
Financial Report
For the Fiscal Year Ended June 30, 2024
This page intentionally left blank.
CITY OF GROVER BEACH,
CALIFORNIA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2024
Prepared by
Department of Administrative Services
Presented by
Nick Szamet, Director of Administrative Services
Mike Flores, Finance Manager
CITY OF GROVER BEACH
Annual Comprehensive Financial Report
Table of Contents
i
INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................................................. 1 Organization of City Government .......................................................................................................................... 5 Directory of City Officials........................................................................................................................................ 6 Government Finance Officers Association Certificate of Achievement ..…………………………………………………………..7
FINANCIAL SECTION
Independent Auditors’ Report ............................................................................................................................... 8 Management’s Discussion and Analysis ............................................................................................................... 12 Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position ....................................................................................................................... 25 Statement of Activities ........................................................................................................................... 26 Fund Financial Statements:
Governmental Funds:
Balance Sheet ..................................................................................................................................... 28 Reconciliation of the Balance Sheet to the Statement of Net Position .............................................. 29 Statement of Revenues, Expenditures, and Changes in Fund Balance .............................................. 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ................................................................................ 31 Proprietary Funds:
Statement of Net Position .................................................................................................................. 32 Statement of Revenues, Expenses, and Changes in Net Position ...................................................... 33 Statement of Cash Flows .................................................................................................................... 34 Fiduciary Funds:
Statement of Fiduciary Net Position ................................................................................................... 36 Statement of Changes in Fiduciary Net Position ................................................................................ 37 Notes to the Basic Financial Statements ....................................................................................................... 38 Required Supplemental Information Section
Budgetary Basis of Accounting - Note to the Required Supplemental Information ............................................ 75 Budgetary Comparison Schedule – General Fund ................................................................................................ 76 Budgetary Comparison Schedule – Street Rehabilitation and Repair Fund......................................................... 77 Schedule of Proportionate Share of Net Pension Liability ................................................................................... 78
CITY OF GROVER BEACH
Annual Comprehensive Financial Report
Table of Contents
ii
Schedule of Pension Contributions ...................................................................................................................... 82 Supplemental Information Section
Nonmajor Governmental Funds Description ....................................................................................................... 86 Combining Balance Sheet Nonmajor Governmental Funds .......................................................................... 88 Combining Statement of Revenues, Expenditures, and Change in Fund Balances – Nonmajor Governmental Funds ......................................................................................................... 92 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – Nonmajor Governmental Funds:
Gas Tax Fund ........................................................................................................................................... 96 Gas Tax RMRA Fund ................................................................................................................................ 97 Public Safety Grants Fund ....................................................................................................................... 98 Park Construction Fund ........................................................................................................................... 99 Transportation Impact Fees Fund ......................................................................................................... 100 Law Enforcement Impact Fees Fund ..................................................................................................... 101 Administrative Impact Fees Fund …………………………………………………………………………………………………….102 Fire Impact Fees Fund ........................................................................................................................... 103 Storm Water Impact Fees Fund ............................................................................................................ 104 Wastewater Impact Fees Fund.............................................................................................................. 105 Parks Facilities Impact Fees Fund .......................................................................................................... 106 Recreation Facilities Impact Fees Fund ................................................................................................. 107 Water Impact Fees Fund ....................................................................................................................... 108 State Mandated ADA Fund .................................................................................................................... 109 Subsidized Senior Transportation Fund ................................................................................................ 110 Local Transportation Fund .................................................................................................................... 111 CDBG Non-Entitlement Fund……………………………………………………………………………………………………………112 Home Grant Fund .................................................................................................................................. 113 Underground Utilities Fund……………………………………………………………………………………………………………..114 Capital Projects Fund............................................................................................................................. 115 Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds ........................................ 116 Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ...................... 117 Combining Statement of Fiduciary Net Position – Custodial Funds ............................................................ 118 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds.......................................... 119
CITY OF GROVER BEACH
Annual Comprehensive Financial Report
Table of Contents
iii
Schedule of Debt Service Coverage………………………………………………………………………………………………………..120 STATISTICAL SECTION (Unaudited)
Explanation of Statistical Section ....................................................................................................................... 121 Financial Trends Information:
Net Position by Component......................................................................................................................... 122 Changes in Net Position ............................................................................................................................... 124 Fund Balances of Governmental Funds ....................................................................................................... 128 Changes in Fund Balances of Governmental Funds..................................................................................... 130 Revenue Capacity Information:
Tax Revenue by Source – General Fund ...................................................................................................... 132 Net Taxable Assessed Value History ............................................................................................................ 133 Assessed Value of Taxable Property ............................................................................................................ 134 Direct and Overlapping Property Tax Rates ................................................................................................ 136 Principal Property Taxpayers ....................................................................................................................... 138 Property Tax Levies and Collections ............................................................................................................ 140 Direct and Overlapping Sales Tax Rates ...................................................................................................... 141 Taxable Sales By Category ........................................................................................................................... 142 Debt Capacity Information:
Ratios of Outstanding Debt by Type ............................................................................................................ 144 Ratios of General Bonded Debt Outstanding .............................................................................................. 145 Direct and Overlapping Governmental Activities Debt ............................................................................... 146 Legal Debt Margin ........................................................................................................................................ 147 Demographic and Economic Information:
Demographics and Economic Statistics ....................................................................................................... 148 Full-Time Equivalent Government Employees by Function ........................................................................ 149 Operating Indicators by Function/Program ................................................................................................. 150 Capital Asset Statistics by Function/Program .............................................................................................. 152
INTRODUCTORY
SECTION
x Letter of Transmittal
x Organization of City Government
x Directory of City Officials
x Government Finance Officers
Association Certificate of Achievement
for Excellence in Financial Reporting
December 19, 2024
To the Honorable Mayor, Members of the City Council and Citizens of the City of Grover Beach, the fiscal year ended June 30, 2024. The City follows a policy of preparing a complete set of financial statements in conformity with accounting principles generally accepted in the United States of America after the end of each fiscal year. These financial statements are audited by a licensed certified public accounting firm. The financial statement audit has been completed, and we hereby issue the Annual Comprehensive Financial Report of the City of Grover Beach for the fiscal year ending June 30, 2024.
Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Grover Beach has established a comprehensive internal control framework that is ent reliable
generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the Ci
to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Grover Beach for the fiscal year ended June 30, 2024, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditing firm concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Grov 4, are fairly presented
in conformity with accounting principles generally accepted in the United States of America. The independent of the financial section of this report.
This report contains financial information and data using the new financial reporting format established for governments by the Governmental Accounting Standards Board (GASB). The GASB sets accounting and financial reporting standards for governments in the United States of America. The financial reporting standards require that management provide a narrative introduction, overview, and analysis to accompany the er of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of 154 South Eighth Street Grover Beach, California 93433
Administrative Services/Water (805) 473-4550 City Council/City Manager (805) 473-4567 City Clerk (805) 473-4568 Community Development - Building, Planning & Economic Development (805) 473-4520 Human Resources (805) 473-4564 Community Services (805) 473-4580 Police/Non-Emergency (805) 473-4511 Public Works (805) 473-4530 2 PROFILE OF THE CITY AND ITS OPERATIONS
The City of Grover Beach was incorporated in 1959 and is located on the Central Coast of California about midway between San Francisco and Los Angeles. The City is located in San Luis Obispo County, which is ocean views and sunsets, fine restaurants, and the relaxing atmosphere unique to coastal communities. The city has a population of approximately 12,000
The City operates under a council-manager form of government. Policy making and legislative authority are vested in the City Council consisting of the Mayor and four Council Members elected at large. The Council is responsible, among other matters, for passing ordinances, adopting the City budget, appointing committees, and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for appointing other employees, and otherwise managing daily operations of the City.
The City provides a full range of municipal services including police protection, construction and maintenance of City streets, sanitary services, water system, storm drains, bridges and other infrastructure assets, and park maintenance, and community recreation activities. In terms of business type activities, the City provides water, wastewater, and storm water collection services through operation of its utility enterprises.
Fire protection is provided through the Five Cities Fire Authority, Joint Powers Agency. biennial
control system. All departments of the City submit requests for appropriations to the City Manager each fiscal year. The City Manager uses these requests as a starting point for developing a proposed budget which is presented to the City Council every two fiscal years. The Council holds a public hearing on the proposed budget and then ultimately adopts a formal budget. The budget is adopted by fund, function, department, relationship to the original budget, and as necessary amends the original budget to reflect changing conditions.
Budget to actual comparisons are provided in this report for each governmental fund for which an appropriated bienni is presented as required
supplementary information in a separate section of this report immediately following the notes to basic -type funds, budget to actual comparison schedules are
presented as optional information in the section of this report containing combining financial statements and individual fund schedules.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the basic financial statements is perhaps best understood when it is considered Grover Beach Economy
The City of Grover Beach covers 2.31 square miles and is located along the beautiful Central Coast of California, 92 miles north of Santa Barbara and 150 miles south of Monterey. Grover Beach shares borders with Pismo Beach and Arroyo Grande and is just 20 minutes south of San Luis Obispo, home of Cal Poly State University. Grover Beach provides for a unique quality of life for over 12,000 residents and draws tourists with its moderate coastal climate and diverse recreational opportunities. Activities include weekly summer concert series, hiking, riding, and jogging along the white sandy beaches, dunes and sea cliffs, kayaking, fishing, clamming, surfing, golfing, horseback riding, wine tasting, and off-road vehicle riding. The 3 Grover Beach is a community-oriented beach town offering a range of housing options with a median home price of $720,000. About 60 -type activities,
are derived from tax revenues; approximately 34 percent is from sales tax revenues and 48 percent is from local property taxes. Other top revenue generators are transient occupancy tax, cannabis tax, and other taxes.
There has been substantial progress with enhancing tourism infrastructure with over new hotel rooms in development. In addition, the City has adopted a short-term rental (STR) ordinance to regulate and tax STRs on the coast.
Long-Term Financial Planning
The City expects in fiscal year 2024-25 to complete capital improvement projects totaling more than $6.7 million. Additional projects are planned for subsequent fiscal years. The City will continue its practice of These projects in fiscal year 2024-25 include continued Street Rehabilitation work, which is being funded primarily by Measure K-14 passed by the citizens in November 2014. The first increment of $5,000,000 in bonds were sold in March 2015. An additional $8,000,000 in bonds were sold in April 2016, $15,000,000 in December 2017 and $10,000,000 in FY 2021-22 for street rehabilitation work.
Cash Resources and Practices
During the fiscal year, almost all the idle cash was invested by the City in the State of California Local Agency Investment Fund (a pooled investment arrangement among California governments). Investment revenue from this investment pool increased to 72 % at the end of fiscal year 2023-24. The City ended the fiscal year with approximately $23.5 million in cash and investments, which includes the proceeds from the Measure K-14 bond sales. This amount is more than sufficient to enable the City to move forward into the new fiscal year and conduct operations.
Risk Management
The City limits its exposure to losses from unfavorable events, employee injuries, and from the risk of damage to City property by participating with other governments in an insurance pool. Under the arrangement, the risk of loss is not transferred to the
first $30,000 of each liability claim. Losses above those amounts are covered by insurance provided by the insurance pool and its purchased excess insurance coverage.
Long-Term Debt Administration
debt service payments due each March and September, beginning in September 2020 and funded by utility rates. Debt currently is held by the Successor Agency in the amount of $2.9 million. Debt service payments are due on this obligation each February and August, and all payments have been made in a timely manner.
With the sale of General Obligation Bonds approved by Measure K- l activities now have issued $38 million in long-term debt as of June 30, 2022, $10 million of this amount was issued in FY 2021-22.
Pension Benefits
safety plans as determined by PERS based upon actuarial information. Additional information about the plan 4 is included in the notes to the basic financial statements.
Challenges for Fiscal Year 2024-25
In fiscal year 2024-25, there are continued near term fiscal uncertainties for the City to monitor. While inflation is slowing down, the increase in the costs of goods and services remains a concern. Additionally, the State is projecting moderate deficit of $2 billion in the coming fiscal year. Locally, uncertainties include future revenues in the cannabis industry and additional competition with cannabis businesses in nearby cities such particularly City buildings and facilities.
Award For Excellence in Financial Reporting
Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to City of Grover Beach for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2023. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgements
The preparation of this report would not have been possible without the efficient and dedicated services of express our appreciation to all members of the departments who assisted and contributed to the preparation of this report. Lastly, we must credit the City Council for their continued support for maintaining the highest Respectfully submitted,
Nick Szamet
Administrative Services Director
Matthew Bronson
City Manager
5 ORGANIZATIONAL STRUCTURE
Community of Grover Beach
City Council
City Manager
City
Management
Administrative
Services
Police Community
Development
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Grover Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
FINANCIAL
SECTION
x Independent Auditor’s Report
x Management’s Discussion and Analysis
x Basic Financial Statements
x Required Supplemental Information
x Supplemental Information
Independent Auditors’ Report
Honorable Mayor and City Council
City of Grover Beach
Grover Beach, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grover Beach, California, (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinions, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Unites States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 8 9
Honorable Mayor and City Council
City of Grover Beach
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing opinions on the effectiveness of the City’s internal control. Accordingly, no such opinions are expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. 10 Honorable Mayor and City Council
City of Grover Beach
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary comparison schedules – General and Major Special Revenue Fund, the Schedule of Proportionate Share of the Net Pension Liability, and Schedule of Pension Plan Contributions, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a basic part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express opinions or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express opinions or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and Schedule of Debt Service Coverage, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinions, the combining and individual nonmajor fund financial statements and Schedule of Debt Service Coverage are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express opinions or any form of assurance thereon. 11 Honorable Mayor and City Council
City of Grover Beach
In connection with out audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of intenral control over financial reporting and compliance and the results of that testing, and not to provide opinions on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governemnt Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Glenn Burdette Attest Corporation
San Luis Obispo, California
December 23, 2024
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
12 The management’s discussion and analysis of the City of Grover Beach presents a narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2024. City management encourages readers to consider the information presented here in conjunction with the accompanying transmittal letter located in the introductory section and the City's financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal year ended June 30, 2024, are as follows:
x The Council approved a five-year Capital Improvements Program (CIP) in June 2024 that identifies 13 projects for the next fiscal year 2025 with a budget of $6.7 million. The largest funded category is streets and storm drains, which includes several Measure K-14 funded street projects, with a projected cost of $5.3 million.
x The City is in the ninth year of the multi-year Local Street Rehabilitation project funded by Measure K-14 which provides up to $48 million in bond funds for repair of residential streets over the next 25 years. The City has completed fifteen street projects with Measure K-14 funds.
As of June 30, 2024, total expenditures for street projects are $34.1 million, with approximately $2.2 million of the total expenditures in FY 2023-24.
x General Fund revenues increased by 38% or $6,643,746 when compared to the previous fiscal year. The City received PLHA grant funds of $5 million in FY 2023-24 generating significant increase over prior year in intergovernmental revenues. Although cannabis tax and sales tax revenue reported a decrease of $131,548, and $149,672 respectively. x The City’s General Fund revenue and other financing sources (uses) exceeded expenditures by $1.2 million in fiscal year 2023-24. This positive outcome was primarily due to property tax and grant revenues coming in higher than anticipated.
OVERVIEW OF THE FINANCIAL STATEMENTS
The financial statements presented herein include all the activities of the City of Grover Beach using the integrated approach as prescribed by GASB Statement No. 34. This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise of three components: (1) government-wide financial statements; (2) fund financial statements; and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. x The government-wide financial statements provide both long-term and short-term information about the City’s overall financial status.
x The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements.
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
13 - The governmental funds statements tell how government services, such as general government, public safety, community development, parks and recreation and public works were financed in the short-term as well as what remains for future spending.
- Proprietary fund statements offer short and long-term financial information about the activities the government operates like businesses, such as the City’s water and wastewater systems.
The basic financial statements also include notes that provide additional information essential to understanding the data contained in the government-wide and fund financial statements.
Figure A-1 on the next page summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain.
The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
14 Figure A-1
Major Features of City of Grover Beach’s Government-Wide and Fund Financial Statements
Fund Statements
Government-wide
Statements
Governmental Funds Proprietary Funds
Scope Entire City
government
The activities of the
City that are not
proprietary or
fiduciary, such as
police, fire, and parks
Activities the City
operates similar to
private businesses: the
water and wastewater
systems
Required financial
statements
x Statement of net
position
x Balance sheet x Statement of net
position
x Statement of
activities
x Statement of
revenues,
expenditures, and
changes in fund
balances
x Statement of
revenues expenses,
and changes in net
position
x Statement of cash
flows
Accounting basis
and measurement
focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and
current financial
resources focus
Accrual accounting and
economic resources
focus
Type of
asset/liability
information
All assets and
liabilities, both
financial and capital,
and short-term and
long-term
Only assets expected
to be used up and
liabilities that come
due during the year or
soon thereafter; no
capital assets included
All assets and liabilities,
both financial and
capital, and short-term
and long-term
Type of
inflow/outflow
information
All revenues and
expenses during year,
regardless of when
cash is received or
paid
Revenues for which
cash is received during
or soon after the end
of the year; expenses
when goods or
services have been
received and payment
is due during the year,
or soon thereafter.
All revenues and
expenses during year,
regardless of when cash
is received or paid
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
15 Government-Wide Financial Statements
The Government-Wide Financial Statements report information about the City as a whole using accounting methods similar to those used by private-sector companies or the accrual basis of accounting. These statements include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt).
The Statement of Net Position presents information on all the City’s assets and liabilities, as well as any deferred outflows or inflows, with the difference between them reported as net position.
Over time, increases or decreases in net position may serve as a useful indicator of whether the overall financial position of the City is improving or deteriorating.
The Statement of Activities includes all the City’s fiscal year’s revenue and expenditures regardless of when cash is received or paid. These government-wide statements report the City’s net position and how the City’s net position has changed during the fiscal year.
Both government-wide statements distinguish the City’s functions that are principally supported by taxes and charges for services (governmental activities) that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include general government, public safety, community development, public works and parks and recreation. The business-type activities of the City include water, water conservation and wastewater.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements include statements for the three categories of activities – governmental, proprietary, and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. The business-type (proprietary) activities are prepared using the economic resources measurement focus and the accrual basis of accounting.
The fiduciary activities include agency funds, which only report a balance sheet and do not have a measurement focus, and trust funds which include activities of the dissolved Redevelopment Agency.
The fund financial statements provide more detailed information about the City's most significant funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants, however management may establish other funds to help control and manage money for purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money.
The City has three types of fund financial statements:
x Governmental funds – Most of the City's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at fiscal yearend that are available for spending. These funds are reported using an accounting method called
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
16 modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental funds statements provide a detailed short-term view of the City’s general government operations, such as police, public works, community development, and parks and recreation, and the basic services it provides. Governmental funds information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, reconciliations that explain the relationship (or differences) between governmental funds and the governmental activities follow the governmental funds statements. x Proprietary funds – Services for which the City charges customers a fee are generally reported in proprietary funds. Proprietary fund statements, like the government-wide statements, provide both long and short-term financial information about the activities the City operates like businesses, such as utility services.
x Fiduciary funds – The City’s fiduciary activities are reported in a separate statement of fiduciary net position and statement of changes in fiduciary net position. These activities are excluded from the City’s other financial statements since the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
Notes to the Basic Financial Statements
The notes provide additional detailed information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Required Supplementary Information
The notes to the basic financial statements are followed by a section of required supplementary information (RSI) that further explains and supports the information in the financial statements.
Other Supplementary Information
In addition to the basic financial statements, accompanying notes and required supplementary information, this report also presents certain other supplementary information including combining fund statements for the City’s non-major special revenue, capital projects and debt service funds, individual budget and actual statements for non-major and major funds and combining statement of net position for fiduciary funds.
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
17 GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Position
The net position of the City decreased by $709,063 thousand from $10 million to $9.3 million at June 30, 2024.
The following analysis of governmental and business-type activities provides more detailed information for these changes.
Governmental Activities
x Current and other assets and deferred outflows of resources, in total, decreased by $1.8 million. Deferred outflows of resources represent the unamortized portion of changes to the net pension liability, which decreased by $367,979 from the prior fiscal year. Cash and investments decreased by $1.7 million.
x Current and other liabilities decreased by $2.2 million from the prior fiscal year. 2023 2024 2023 2024 2023 2024
ASSETS
Current and other assets $ 22,717,865 $ 21,240,513 $ 12,497,785 $ 10,740,933 $ 35,215,650 $ 31,981,446 Net Capital assets 22,924,193 $ 24,174,002 8,965,035 8,825,774 31,889,228 32,999,776 Total assets 45,642,058 45,414,515 21,462,820 19,566,707 67,104,878 64,981,222
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resource 6,317,127 5,949,148 808,172 941,692 7,125,299 6,890,840 Total deferred outflows of resources 6,317,127 5,949,148 808,172 941,692 7,125,299 6,890,840
LIABILITIES
Current and other liabilities 4,164,191 1,937,654 1,584,839 463,814 5,749,030 2,401,468 Long-term liabilities outstanding 50,877,420 53,135,370 6,220,777 6,275,237 57,098,197 59,410,607 Total liabilities 55,041,611 55,073,024 7,805,616 6,739,051 62,847,227 61,812,075
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows 1,201,355 649,662 147,501 85,294 1,348,856 734,956 Total deferred inflows of resources 1,201,355 649,662 147,501 85,294 1,348,856 734,956
NET POSITION
Net investment in capital assets (9,088,718) * (9,990,567) * 7,817,262 ** 6,024,334 ** (1,271,456) (3,966,233) Restricted 6,644,643 7,147,637 6,644,643 7,147,637
Unrestricted (1,839,706) (1,516,093) 6,500,613 7,659,720 4,660,907 6,143,627 $ (4,283,781) $ (4,359,023) $ 14,317,875 $ 13,684,054 $ 10,034,094 $ 9,325,031 * Net investment in capital assets for governmental activities excludes the unspent bond proceeds in the Street Rehab and Repair Fund.
The bond proceeds are used for the repairs and maintenance of city streets. These repairs are expensed in the year incurred and are not capitalized, which creates a negative balance in the net investment in capital assets because they are not included as a capital asset.
Certain reclassifications have been made to the prior year classification to conform to the current year presentation. ** Net investment in capital assets for business-type activities excludes the water bonds payable that has not been spent yet for capital purposes. Unspent bond proceeds are reported as unrestricted and related portion reported in the same component of net position as the unspent proceeds, and therefore will not have any net effect on any classification of net position.
Total net position
Governmental Activities Business-type Activities Total
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
18 x Restricted net position, representing amounts that must be used in accordance with external restrictions increased $502,994. The remaining balance of unrestricted net position may be used to meet the City’s ongoing obligations to citizens and creditors.
Net position may serve over time as a useful indicator of a government’s financial position. For FY 2023-24, liabilities and deferred inflows exceeded assets and deferred outflows by $4.3 million. It should be noted that the Street Rehabilitation and Repair Fund includes bonds, although the street repairs and maintenance that are paid from the bond proceeds do not get capitalized; they are expensed in the year the cost is incurred. This creates a negative balance in the net investments in capital assets.
Business-Type Activities
x Total assets and deferred outflows of resources decreased by $1.8 million that is mainly due to a decrease in water fees that can be attributed to a new tiered rate system along with a successful water conservation effort that resulted in a significant reduction in water usage offset by a decrease in capital assets of $139,261 related to various CIP projects. Deferred outflows of resources represent the unamortized portion of changes to the net pension liability, which increased by $133,520 from the prior fiscal year. x Net investment in capital assets decreased by $1.8 million due to capital asset additions, deletions or adjustments plus unspent bond proceeds and offset by capital related debt.
Additional capital asset information is in the Capital Asset section of this MD&A and in Note 4 to the financial statements.
x Business-type activities use the same accrual basis of accounting as the Proprietary Funds and are used to account for those activities that are supported primarily by user charges to external customers. This includes water, water conservation and wastewater services.
For FY 2023-24, assets and deferred outflows exceeded liabilities and deferred inflows by $13.7 million for business type activities.
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
19 Analysis of Statement of Activities
The change in net position for governmental and business-type activities are as follows:
2023 2024 2023 2024 2023 2024
REVENUES
Charges for services $ 1,799,849 $ 1,896,201 $ 4,966,827 $ 5,795,618 $ 6,766,676 $ 7,691,819 Operating Contributions and Grants 1,862,592 8,845,685 1,862,592 8,845,685 Capital Contributions and Grants 437,101 287,585 437,101 287,585 General revenues:
Property taxes 7,552,939 8,014,612 7,552,939 8,014,612
Other taxes 9,124,697 8,667,192 9,124,697 8,667,192
Other revenues 438,642 875,825 193,873 268,705 632,515 1,144,530 Total revenues 21,215,820 28,587,100 5,160,700 6,064,323 26,376,520 34,651,423
EXPENSES
Governmental activities:
General Government 4,657,513 8,286,836 4,657,513 8,286,836 Public Safety 7,826,482 7,774,094 7,826,482 7,774,094
Community Development 851,204 6,467,427 851,204 6,467,427 Public Works 7,100,166 6,835,386 7,100,166 6,835,386
Parks and Recreation 603,660 - 603,660 -
Business-type activities:
Water 5,389,559 4,665,962 5,389,559 4,665,962
Water Conservation 19,282 4,771 19,282 4,771
Wastewater 1,150,078 1,326,010 1,150,078 1,326,010
Total expenses 21,039,025 29,363,743 6,558,919 5,996,743 27,597,944 35,360,486 Change in net position
before transfers 176,795 (776,643) (1,398,219) 67,580 (1,221,424) (709,063) Transfers 490,290 701,401 (490,290) (701,401)
Change in net position 667,085 (75,242) (1,888,509) (633,821) (1,221,424) (709,063) Net position - July 1 (4,950,866) (4,283,781) 16,206,384 14,317,875 11,255,518 10,034,094 Net position - June 30 $ (4,283,781) $ (4,359,023) $ 14,317,875 $ 13,684,054 $ 10,034,094 $ 9,325,031 Total
Program revenues:
Governmental Activities Business-type Activities
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
20 Grants and
Contributions
26%
TOT Tax
3%
Property Tax
23%
Sales Tax
17%
Cannabis
Tax
3%
Charges for
Services
22%
Other
6% REVENUES BY SOURCE
FY 2023-24
Public Safety
22%
Public Works
19%
Community
Development
18%
Business-Type
Activities
17%
General
Government
24%
EXPENSES BY TYPE
FY 2023-24
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
21 Governmental Activities
Governmental activities decreased the City’s net position by about $75,242 Total resources available during the year to finance governmental activities consisted of net position at July 1, 2023, of ($4.2) million, program revenues of $11 million, and general revenues of $17.5 million.
Total expenses for governmental activities during the fiscal year were $29.3 million. Net interfund transfers for governmental activities from business type activities during the fiscal year were $701,401.
Key factors are as follows:
x Total revenue increased by $7.3 million, from $21.2 million in the prior fiscal year to $28.5 million in the current fiscal year. This increase is mainly attributed to grant revenues that were received during the fiscal year including: 1) $5 million from Permanent Local Housing Allocation (PLHA) used for funding permanent housing-related projects 2) $1 million related to Community Development Block Grant (CDBG) 3) $1 million related to American Rescue Plan Act funds used to replace lost revenue due to the COVID-19 Pandemic. x There was a decrease in cannabis tax revenue of $ 131,548 as well as sales tax, which saw a decrease of 149,672. These were offset by increases in property tax revenues of $ 461,673 and increases in investment income of $ 437,183. x Total expenses for governmental activities increases by $8.3 million during the fiscal year, mainly due to the one time PLHA pass through of $5 million related to housing related projects.
x Interfund transfers included $701,401 for CIP projects and overhead cost allocations from the Enterprise Funds to the General Fund.
Business-Type Activities
The City’s net position from business-type activities decreased by $633,821. The programs for the business-type activities include water, water conservation and wastewater utilities.
Key factors are as follows:
x Water net position decreased by approximately $808,507. Operating revenues increased by $552,879. Operating expenses increased approximately $1,220,755, mostly related to salaries and benefits, specifically for the end of year pension adjustment, as well as equipment purchases. Transfers decreased by $49,394.
x Wastewater net position increased minimally by approximately $167,824 due to higher wastewater fees offset by higher operating expenditures.
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
22 FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
The focus on the City’s governmental funds is to account for the near-term inflows, outflows and balances of resources that are available for spending. This information is useful in assessing the City’s financing requirements. Specifically, unassigned fund balance is a useful measure of the agency’s net resources available to meet current and future needs at the end of the fiscal year.
Types of governmental funds reported by the City include the General Fund, Special Revenue Funds, Capital Projects Fund, and Debt Service Fund.
As of the fiscal year ended June 30, 2024, the City’s governmental funds reported a combined ending fund balance of $19.3 million, a decrease of $451,592. The most significant factor was the decrease in Street Rehabilitation and Repair Fund of $2.2 million. The General Fund increased by $1.3 million mainly due to higher than anticipated tax revenues and lower CIP project cost, due to costs coming in lower than anticipated or not completed by the end of the fiscal year.
For the fiscal year ended June 30, 2024, revenues for governmental funds overall totaled $28.5 million or $7.3 million higher than the prior fiscal year primarily due to $6.5 million in various grants awarded for various capital projects and housing-related projects. Expenditures for governmental funds totaled $29.3 million and included construction costs for major street rehabilitation, park rehabilitation and facility improvement projects and capital outlay for citywide sidewalk improvements and various other CIP projects and capital assets included on the next page under Capital Assets.
The City’s governmental funds are classified as major or nonmajor. Major funds meet the specified criteria of revenues, expenditures, assets, or liabilities of at least 10% of corresponding totals for all governmental and enterprise funds and at least 5% of the aggregate amount for all government and enterprise funds. A fund that does not meet the specified criteria can still be classified as a major fund if it is deemed important to financial statement users. For the current fiscal year 2023- 24, major funds included the General Fund, Street Rehabilitation and Repair Fund, and the Street Improvements Debt Service Fund. The City’s nonmajor funds that did not meet the specified criteria for a major fund are listed under Other Governmental Funds on the Governmental Funds Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances.
Proprietary Funds
The City’s proprietary funds statements provide the same type of information found in the government-wide financial statements but in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds.
At the end of the fiscal year, the unrestricted net position for the Water, Water Conservation and Wastewater Funds are $2.7 million, $363,132, and $4.6 million respectively, for a combined total of $7.6 million unrestricted net position for the proprietary funds. Key factors concerning the finances of the enterprise funds have been addressed previously in the discussion of the City’s business-type activities.
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
23 CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2024, net capital assets of the governmental activities totaled $24.1 million, and the net capital assets of the business-type activities totaled $8.8 million.
The following table presents summary information on the City’s capital assets as of June 30, 2023 and 2024:
More detailed information about the City’s capital assets is presented in Note 4 to the basic financial statements section.
Debt Administration
As of June 30, 2024, the City had $53 million of outstanding long-term obligations related to governmental activities and $6.2 million related to business-type activities, for a total of $59.4 million. Debt outstanding as of June 30, 2024, with a comparison to prior year and the net change are as follows:
Total outstanding long-term debt for governmental activities increased by $1 million in fiscal year 2023-24, which was mainly due to a $1 million increase in net pension liability. 2023 2024 2023 2024 2023 2024
Land $1,890,915 $1,890,915 $260,849 $260,849 $2,151,764 $2,151,764 Construction in progress 1,137,457 1,841,021 293,784 408,529 1,431,241 2,249,550 Capacity rights 1,598,578 1,598,578 1,598,578 1,598,578 Equipment 2,994,428 4,269,735 779,228 779,228 3,773,656 5,048,963 Right-to-use leased equipment 371,147 511,505 73,072 371,147 584,577 Subscription Intagible 363,268 552,796 363,268 552,796
Infrastructure 26,737,547 26,803,358 14,134,134 14,134,134 40,871,681 40,937,492 Accumulated depreciation (10,570,569) (11,695,328) (8,101,538) (8,428,616) (18,672,107) (20,123,944) Net capital assets $22,924,193 $24,174,002 $8,965,035 $8,825,774 $31,889,228 $32,999,776 Governmental Activities Business-Type Activities Total
2023 2024 2023 2024 2023 2024
Bonds payable $37,223,345 36,277,203 $3,918,000 $3,730,000 $41,141,345 $40,007,203 Loans payable 87,898 63,098 87,898 63,098
Early retirement 8,069 6,634 4,157 2,092 12,226 8,726
Compensated absences 780,976 809,453 152,037 139,181 933,013 948,634 Lease Liability - 464,169 - 464,169
Lease-Purchase Financing 313,905 910,420 66,310 313,905 976,730 Subscription liability 226,718 114,845 226,718 114,845
Net pension liability 13,443,276 14,489,548 2,146,582 2,337,654 15,589,858 16,827,202 Total long-term debt $52,084,187 $53,135,370 $6,220,776 $6,275,237 $58,304,963 $59,410,607 Governmental Activities Business-Type Activities Total
CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2024
24 In November 2014, Grover Beach voters passed Ballot Measure K-14, which approved the sale of bonds, up to $48 million dollars. These funds are to be used to fund improvements to the residential streets in the city. The first bonds were issued on March 25, 2015, and were issued for $5 million dollars, payable over 20 years. The second series of bonds were issued on March 31, 2016, for $8 million dollars, also payable over 20 years. The third series of bonds were issued on December 20, 2017, for $15 million dollars, payable over 20 years. The fourth series of bonds were issued January 26, 2022, for $10 million and a total of $38 million in bonds being issued.
These series of bonds and future bonds will be placed on the property tax roll.
Total outstanding long-term debt for business-type activities increased by $54,461 in fiscal year 2023-24 which was mainly due to a $191,072 increase in net pension liability.
More detailed information about the City’s total long-term liabilities is presented in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The budget for fiscal year 2024-25 assumes a balanced budget with reserves that are currently maintained above the General Fund Reserve policy. General Fund fiscal year 2024-25 budgeted appropriations, including Capital Improvements are set at $18.4 million.
The fiscal year 2024-25 budget has proposed capital expenditures of $6.1 million for infrastructure related projects.
Capital improvements included in the $6.1 million listed above includes:
x Major Street Rehabilitation Projects
x Water Main Zone Valves
x Sewer System Upgrades
As for the City's business-type activities, about $6.7 million is expected to be spent in fiscal year 2024-25 to conduct operations and make capital improvements.
The enterprise fund programs are solely funded by charges for services to system users.
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Administrative Services Director, City of Grover Beach, 154 South 8th Street, Grover Beach, CA 93433.
CITY OF GROVER BEACH
STATEMENT OF NET POSITION
June 30, 2024
Governmental
Activities
Business-type
Activities Total
ASSETS
Cash and investments $ 19,506,419 $ 8,102,659 $ 27,609,078 Accounts receivable, net 2,343,390 1,360,948 3,704,338
Interest receivable 96,759 77,589 174,348
Inventory 128,225 128,225
Loans receivable 333,975 333,975
Loans receivable - Successor Agency 29,870 29,870
Internal balances (1,041,642) 1,041,642 -
Prepaid items 1,612 1,612
Capital assets:
Non-Depreciable:
Land 1,890,915 260,849 2,151,764
Construction in progress 1,841,021 408,529 2,249,550
Depreciable and amortizable:
Equipment 4,269,735 779,228 5,048,963
Right-to-use leased equipment 511,505 73,072 584,577
Subscription asset 552,796 552,796
Buildings and infrastructure 26,803,358 14,134,134 40,937,492 Capacity rights 1,598,578 1,598,578
Accumulated depreciation and amortization (11,695,328) (8,428,616) (20,123,944) Total assets 45,414,515 19,566,707 64,981,222
DEFERRED OUTFLOWS
Related to pensions 5,949,148 941,692 6,890,840
Total deferred outflows 5,949,148 941,692 6,890,840
LIABILITIES
Accounts payable 1,033,459 272,643 1,306,102
Accrued wages 230,520 16,725 247,245
Unearned revenue 245,951 245,951
Interest payable 427,724 31,736 459,460
Deposits 142,710 142,710
Noncurrent liabilites
Due within one year 1,619,213 268,459 1,887,672
Due in more than one year 51,516,157 6,006,778 57,522,935 Total Liabilities 55,073,024 6,739,051 61,812,075
DEFERRED INFLOWS
Related to pensions 649,662 85,294 734,956
Total deferred inflows 649,662 85,294 734,956
NET POSITION
Net investment in capital assets (9,990,567) 6,024,334 (3,966,233) Restricted for:
Street improvements 2,712,161 2,712,161
Transportation 23,696 23,696
Public safety 177,777 177,777
Community development projects 155,893 155,893
Administrative functions 30,265 30,265
Storm water functions 200,433 200,433
Wastewater functions 300,509 300,509
Park facilities 272,903 272,903
Recreation facilities 58,458 58,458
State mandated ADA 9,619 9,619
Underground utilities 239,965 239,965
Home grant 122,500 122,500
Debt service 2,843,458 2,843,458
Unrestricted (1,516,093) 7,659,720 6,143,627
Total net position $ (4,359,023) $ 13,684,054 $ 9,325,031 The accompanying notes are an integral part of these financial statements. 25 CITY OF GROVER BEACH
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2024
Expenses Charges for Services
Operating
Contributions and
Grants
Governmental activities:
General government $ 8,286,836 1,173,999 $ 7,259,311
Public safety 7,774,094 62,901 321,266
Community development 6,467,427 158,750 597,626
Public works 6,835,386 500,551 667,482
Parks and recreation - -
Total governmental activities: 29,363,743 1,896,201 8,845,685 Business-type Activities:
Water 4,665,962 4,191,728
Water conservation 4,771 -
Wastewater 1,326,010 1,603,890
Total business-type Activities: 5,996,743 5,795,618
Total $ 35,360,486 $ 7,691,819 $ 8,845,685
Net position - end of fiscal year
The accompanying notes are an integral part of these financial statements.
Investment income (loss)
Other revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of fiscal year
Other taxes
Program Revenues
General Revenues:
Taxes:
Property tax
Sales and use tax
Cannabis tax
Transient occupancy tax
Franchise fees
26 Capital
Contributions and
Grants
Governmental
Activities
Business-type
Activities Total
$ - $ 146,474 $ - $ 146,474
(7,389,927) (7,389,927)
(5,711,051) (5,711,051)
287,585 (5,379,768) (5,379,768)
- -
287,585 (18,334,272) (18,334,272)
(474,234) (474,234)
(4,771) (4,771)
277,880 277,880
(201,125) (201,125)
$ 287,585 (18,334,272) (201,125) (18,535,397)
8,014,612 8,014,612
5,733,277 5,733,277
1,066,489 1,066,489
953,685 953,685
718,907 718,907
194,834 194,834
860,579 268,696 1,129,275
15,246 9 15,255
701,401 (701,401) -
18,259,030 (432,696) 17,826,334
(75,242) (633,821) (709,063)
(4,283,781) 14,317,875 10,034,094
$ (4,359,023) $ 13,684,054 $ 9,325,031
Net (Expenses) Revenue and Changes in Net Position
27 CITY OF GROVER BEACH
GOVERNMENTAL FUNDS
BALANCE SHEET
June 30, 2024
General Fund
Street
Rehabilitation
and Repair
Fund
Street
Improvements
Debt Service
Fund
Other
Governmental
Funds Totals
ASSETS
Cash and investments $ 8,681,993 $ 4,302,355 $ 2,843,458 $ 3,678,613 $ 19,506,419 Accounts receivable 1,834,659 508,731 2,343,390
Interest receivable 59,872 36,887 96,759
Loans receivable 333,975 333,975
Prepaid items 1,612 1,612
Total assets $ 10,578,136 $ 4,302,355 $ 2,843,458 $ 4,558,206 $ 22,282,155
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 257,515 $ 634,578 $ - $ 141,366 $ 1,033,459 Accrued wages 227,423 2,611 486 230,520
Advances payable 1,041,642 1,041,642
Unearned revenue 245,951 245,951
Total liabilities 1,772,531 637,189 - 141,852 2,551,572 Deferred Inflows of Resources:
Unavailable revenue 333,975 333,975
Total deferred inflows of resources - - - 333,975 333,975 Fund Balances:
Nonspendable
Prepaid items 1,612 1,612
Restricted for:
Street improvements 3,665,166 2,712,161 6,377,327
Transportation 23,696 23,696
Public safety 177,777 177,777
Community development projects 155,893 155,893
Administrative functions 30,265 30,265
Storm water functions 200,433 200,433
Wastewater functions 300,509 300,509
Park facilities 272,903 272,903
Recreation facilities 58,458 58,458
State mandated ADA 9,619 9,619
Underground utilities 239,965 239,965
Debt service 2,843,458 - 2,843,458
Unassigned 8,803,993 (99,300) 8,704,693
Total fund balances 8,805,605 3,665,166 2,843,458 4,082,379 19,396,608 Total liabilities, deferred inflows of resources, and fund balances $ 10,578,136 $ 4,302,355 $ 2,843,458 $ 4,558,206 $ 22,282,155 The accompanying notes are an integral part of these financial statements. 28 CITY OF GROVER BEACH
June 30, 2024
$ 19,396,608
all assets are reported, including capital assets and accumulated depreciation.
Land $ 1,890,915
CIP 1,841,021
Equipment 4,269,735
Right-to-use leased equipment 511,505
Subscription asset 552,796
Buildings and infrastructure 26,803,358
Capital assets at historical cost 35,869,330
Accumulated depreciation (11,695,328)
Net capital assets 24,174,002
it matures and is paid. In government-wide statements, it is recognized in the period that it is incurred. (427,724)
statement of net position, all liabilities, including long-term liabilities, are reported.
Long-term liabilities relating to governmental activities consist of:
State loan $ 63,098.00
Early retirement incentive 6,634
Compensated absences payable 809,453
General obligation bonds 36,277,203
Leases 464,169
Subscription liability 114,845
Lease-purchase financing 910,420
Net pension liability 14,489,548
Total long-term liabilities (53,135,370)
are not reported because they are applicable to future periods. In the statement of net position, deferred outflows and inflows of resources relating to pensions are reported. 5,299,486
collected within the prescribed time period after fiscal year-end. However, the revenues are included on the accrual basis used in the government-wide financial statements. 333,975
Total net position - governmental activities $ (4,359,023) The accompanying notes are an integral part of these financial statements.
Certain revenues in the governmental funds are deferred because the revenues are not
RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET
TO THE STATEMENT OF NET POSITION
Total fund balances - governmental funds
In governmental funds, only current assets are reported. In the statement of net position, In governmental funds, interest on long-term debt is not recognized until the period in which Long-term liabilities: In governmental funds, only current liabilities are reported. In the In governmental funds, deferred outflows and inflows of resources relating to pensions 29 CITY OF GROVER BEACH
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2024
General Fund
Street
Rehabilitation
and Repair
Fund
Street
Improvements
Debt Service
Fund
Other
Governmental
Funds Totals
Revenues:
Taxes $ 14,526,218 $ - $ 2,155,587 $ - $ 16,681,805
Licenses, permits, and fees 514,705 514,705
Intergovernmental 7,394,417 1,738,852 9,133,269
Charges for services 730,264 488,321 1,218,585
Fines and forfeitures 37,838 37,838
Use of money and property 586,589 211,883 67,509 131,935 997,916 Other 2,183 799 2,982
Total revenues 23,792,214 212,682 2,223,096 2,359,108 28,587,100 Expenditures:
General government 7,905,734 7,100 7,912,834
Public safety 6,680,356 246,765 6,927,121
Community development 5,811,858 592,261 6,404,119
Public works 1,462,540 2,424,471 3,600 468,287 4,358,898 Capital outlay 1,786,250 1,367,981 3,154,231
Debt service:
Principal 83,813 810,000 893,813
Interest 18,733 1,237,376 1,256,109
Total expenditures 23,749,284 2,424,471 2,050,976 2,682,394 30,907,125 Excess of revenues over (under) expenditures 42,930 (2,211,789) 172,120 (323,286) (2,320,025) Other Financing Sources (Uses):
Lease financing 1,167,032 1,167,032
Transfers in 636,417 38,000 1,133,737 1,808,154
Transfers out (528,987) (577,766) (1,106,753)
Total other financing sources (uses) 1,274,462 38,000 - 555,971 1,868,433 Net change in fund balances 1,317,392 (2,173,789) 172,120 232,685 (451,592) Fund balances - July 1 7,488,213 5,838,955 2,671,338 3,849,694 19,848,200 Fund balances - June 30 $ 8,805,605 $ 3,665,166 $ 2,843,458 $ 4,082,379 $ 19,396,608 The accompanying notes are an integral part of these financial statements. 30 CITY OF GROVER BEACH
$ (451,592)
statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which additions to capital outlay of $2,533,600 exceeds depreciation and amortization expense $(1,266,062) in the period. 1,249,809 government-wide statements, repayments of long-term debt are reported as reductions of liabilities. 941,149
becomes due. In the government-wide statements of activities, it is recognized in the period that it is incurred. Unmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period was: 111,873 during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). This fiscal year, vacation earned exceeded the amounts used by: (5,989) In the statement of activities, pension costs are recognized on the accrual basis.
This fiscal year, the difference between accrual-basis pension costs and actual employer contribution was: (28,477)
In the statement of activities, early retirement incentive benefit costs are recognized on the accrual basis. This year, the difference between benefits paid and accrued was: (862,559) financing source in the period it is incurred. In the government-wide statements, the premium is amortized as interest over the life of the debt. Amortization of debt issue premium for the period is: 1,435
government-wide statements, proceeds from debt are reported as increases to liabilities.
Amounts recognized in governmental funds as proceeds from debt, net of issue premium or discount, were: 136,142
within the prescribed time period after the fiscal year-end. However, the revenues are included on the accrual basis used in the government-wide statements. (1,167,033) Changes in net position - governmental activities $ (75,242) The accompanying notes are an integral part of these financial statements.
In governmental funds, certain revenues are deferred because revenues are not collected
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Eneded June 30, 2024
Total net change in fund balances - governmental funds
Capital outlays are reported in governmental funds as expenditures. However, in the In governmental funds, proceeds from debt are recognized as other financing sources. In the In governmental funds, repayments of long-term debt are reported as expenditures. In the In governmental funds, interest on long-term debt is recognized in the period that it In the statement of activities, compensated absences are measured by the amounts earned In governmental funds, pension costs are recognized when employer contributions are made.
In governmental funds, early retirement incentive benefit costs are recognized when paid.
In governmental funds, if debt is issued at a premium, the premium is recognized as an other 31 CITY OF GROVER BEACH
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
June 30, 2024
Water Fund
Water
Conservation
Fund
Wastewater
Fund Totals
ASSETS
Current assets:
Cash and investments $ 4,047,221 $ 359,971 $ 3,695,467 $ 8,102,659 Accounts receivable,net 715,809 645,139 1,360,948
Interest receivable 38,213 3,161 36,215 77,589
Inventory at cost 128,225 128,225
Total current assets 4,929,468 363,132 4,376,821 9,669,421 Noncurrent assets:
Loans receivable 29,870 29,870
Advances receivable 1,041,642 1,041,642
Capital assets:
Land 260,849 260,849
Construction in progress 125,939 282,590 408,529
Equipment 311,335 467,893 779,228
Infrastructure 9,774,687 4,359,447 14,134,134
Right of use leased asset 36,536 36,536 73,072
Capacity rights 1,598,578 1,598,578
10,509,346 6,745,044 17,254,390
Less accumulated depreciation (4,114,696) (4,313,920) (8,428,616) Total capital assets, net of accumulated depreciation 6,394,650 2,431,124 8,825,774 Total noncurrent assets 6,424,520 - 3,472,766 9,897,286 Total assets 11,353,988 363,132 7,849,587 19,566,707
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 539,696 401,996 941,692
Total deferred outflows of resources 539,696 401,996 941,692
LIABILITIES
Current liabilities:
Accounts payable 47,920 224,723 272,643
Accrued payroll 8,819 7,906 16,725
Deposits 142,710 142,710
Accrued interest payable 31,736 31,736
Compensated absences - current 32,815 28,776 61,591
Early retirement - current 140 140
Lease liability - current 6,864 6,864 13,728
Revenue bonds - current 193,000 193,000
Total current liabilities 463,864 - 268,409 732,273
Noncurrent liabilities:
Lease liability, net of current 26,291 26,291 52,582
Revenue bonds, net of current 3,537,000 3,537,000
Compensated absences, net of current 50,390 27,200 77,590 Early retirement, net of current 640 1,312 1,952
Net pension liability 1,372,818 964,836 2,337,654
Total noncurrent liabilities 4,987,139 1,019,639 6,006,778 Total liabilities 5,451,003 - 1,288,048 6,739,051
DEFERRED INFLOWS OF RESOURCES
Related to pensions 50,090 35,204 85,294
Total deferred inflows of resources 50,090 35,204 85,294
NET POSITION
Net investment in capital assets 3,626,365 - 2,397,969 6,024,334 Unrestricted 2,766,226 363,132 4,530,362 7,659,720
Total net position $ 6,392,591 $ 363,132 $ 6,928,331 $ 13,684,054 The accompanying notes are an integral part of these financial statements. 32 CITY OF GROVER BEACH
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2024
Water Fund
Water
Conservation
Fund
Wastewater
Fund Totals
Operating Revenues:
Charges for services $ 3,916,646 $ - $ 1,603,890 $ 5,520,536 Other operating revenues 275,082 275,082
Total operating revenues 4,191,728 - 1,603,890 5,795,618 Operating Expenses:
Salaries and benefits 860,331 370 853,169 1,713,870
Supplies and services 2,570,632 4,401 376,147 2,951,180 Non-capitalized equipment 254,623 254,623
Depreciation 230,384 96,694 327,078
Total operating expenses 3,915,970 4,771 1,326,010 5,246,751 Operating income (loss) 275,758 (4,771) 277,880 548,867 Non-Operating Revenues (Expenses):
Grants $ - $ - $ 9 $ 9
Interest income 133,226 11,633 123,837 268,696
Interest expense (92,822) (92,822)
Loss on investment for Joint Powers Authority (657,170) (657,170) Total non-operating revenues (expenses) (616,766) 11,633 123,846 (481,287) Income (loss) before transfers (341,008) 6,862 401,726 67,580 Transfers:
Transfers in 25,000 6,106 31,106
Transfers out (492,499) (240,008) (732,507)
Total transfers (467,499) (233,902) (701,401)
Change in net position (808,507) 6,862 167,824 (633,821) Net position - July 1 7,201,098 356,270 6,760,507 14,317,875 Net position - June 30 $ 6,392,591 $ 363,132 $ 6,928,331 $ 13,684,054 The accompanying notes are an integral part of these financial statements. 33 CITY OF GROVER BEACH
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
For the Fiscal Year Ended June 30, 2024
Water Fund
Water
Conservation
Fund
Wastewater
Fund Totals
Cash Flows From Operating Activities:
Receipts from customers $ 3,875,128 $ - $ 1,761,370 $ 5,636,498 Payments to suppliers (3,943,126) (5,213) (532,701) (4,481,040) Payments to employees (876,675) (470) (857,053) (1,734,198) Other receipts 275,082 275,082
Net cash provided (used) by operating activities (669,591) (5,683) 371,616 (303,658) Cash Flows From Capital and Related Financing Activities:
Principal paid on financed purchases (3,381) (3,381) (6,762) Interest paid on long-term debt (92,822) (92,822)
Principal paid on long-term debt (188,000) (188,000)
Acquisition of capital assets (108,639) (6,106) (114,745) Net cash used by capital and related financing activities (392,842) (9,487) (402,329) Cash Flows From Noncapital Financing Activities:
Operating grants received 9 9
Advances to/from other funds 133,947 133,947
Transfers to other funds (492,499) (240,008) (732,507)
Transfers from other funds 25,000 6,106 31,106
Net cash provided (used) by noncapital financing activities (467,499) - (99,946) (567,445) Cash Flows From Investing Activities:
Interest income received 128,109 10,509 106,433 245,051 Net cash provided by investing activities 128,109 10,509 106,433 245,051 Net increase (decrease) in cash and cash equivalents (1,401,823) 4,826 368,616 (1,028,381) Cash and cash equivalents - July 1 5,449,044 355,145 3,326,851 9,131,040 Cash and cash equivalents - June 30 $ 4,047,221 $ 359,971 $ 3,695,467 $ 8,102,659
The notes to financial statements are an integral part of this statement. 34 CITY OF GROVER BEACH
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS (Continued)
For the Fiscal Year Ended June 30, 2024
Water Fund
Water
Conservation
Fund
Wastewater
Fund Totals
Reconciliation of operating income (loss) to net cash provided (used) by operating activities:
Operating income (loss) $ (4,771) 275,758 $ 473,769 $ 744,756 $ Adjustments to reconcile operating activities:
Depreciation expense 96,694 230,384 327,078
Changes in assets, deferred outflows of resources,
liabilities and deferred inflows of resources:
Receivables, net (38,409) (46,571) (84,980)
Prepaid expenses 58,438 58,438
Inventories (12,456) (12,456)
Deferred outflows (67,767) (65,753) (133,520)
Accounts payable (812) (1,163,853) (156,554) (1,321,219) Accrued payroll (100) (267) (384) (751)
Deposits 5,053 5,053
Compensated absences (6,369) (6,487) (12,856)
Early retirement (630) (1,435) (2,065)
Net pension liability 95,779 95,292 191,071
Deferred inflows (24,513) (37,694) (62,207)
Net cash provided (used) by operating activities $ (5,683) (669,591) $ 371,616 $ $ (303,658) The accompanying notes are an integral part of these financial statements. 35 CITY OF GROVER BEACH
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
June 30, 2024
Successor Agency
Private-Purpose
Trust Funds
Custodial
Funds
ASSETS
Cash and investments $ 23,302 $ 473,649
Cash and investments with fiscal agent 313,931
Land held for projects 380,000
Total assets 717,233 $ 473,649
LIABILITIES
Accounts payable and other liabilities $ - 110,237
Accrued interest payable 55,729
Due to local governments 312,377
Unearned revenue 228,627
Noncurrent liabilities
Due within one year 160,000
Due in more than one year 2,394,869
Total Liabilities 2,839,225 $ 422,614
NET POSITION
Restricted for:
Individuals, organizations, and other governments (2,121,992) 51,035 Total net position $ (2,121,992) $ 51,035
The accompanying notes are an integral part of these financial statements. 36 CITY OF GROVER BEACH
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended June 30, 2024
Successor Agency
Private-Purpose
Trust Funds Custodial Funds
Additions:
Taxes $ 291,000 $ 74,903
Interest 17,045
Building and planning deposits 351,221
Other 238,647
Total additions 308,045 664,771
Deductions:
Community development 6,755 268,398
Payment of tourism marketing district tax to other governments 70,639 Refunds and transfers to other systems 216,007
Interest expense 130,000
Other expense 7,140
Total deductions 136,755 562,184
Change in net position 171,290 102,587
Total net position-beginning (2,293,282) (51,552)
Total net position-ending $ 51,035 (2,121,992) $
The accompanying notes are an integral part of these financial statements. 37 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The accompanying basic financial statements present the financial activity of the City of Grover Beach. There are no component units included in this report which meet the criteria of GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statements No. 39, No. 61, and No. 80.
B. Basis of Presentation
The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
Government-wide Statements
The Statement of Net Position and the Statement of Activities display information about the City.
These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. The City does not eliminate interfund services provided and used during the process of consolidation. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program, and (c) fees, grants, and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds.
Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.
Proprietary fund financial statements include a Statement of Net Position; a Statement of Revenues, Expenses, and Changes in Net Position; and a Statement of Cash Flows for all
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
proprietary funds.
Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operation of the fund. All other revenues are reported as nonoperating revenues.
Operating expenses are those expenses that are essential to the primary operations of the fund.
All other expenses are reported as nonoperating expenses.
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as a custodian for individuals, private organizations, other governmental units, and/or other funds. Fiduciary Funds use the full accrual basis of accounting and a measurement focus on the periodic determination of additions, deductions, and net position restricted for others. Fiduciary funds are reported in the fund financial statements but are not included for government-wide reporting purposes.
C. Major Funds
GASB Statement No. 34, defines major funds and requires that the City’s major funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund-type.
Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-type total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements
General Fund
This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City.
Street Rehabilitation and Repair Fund
This is a special revenue fund that accounts for bond proceeds from the issuance of debt and is restricted to the repairs and maintenance of City streets.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
40 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds (Continued)
Street Improvements Debt Service Fund
This fund is held by the County of San Luis Obispo and pays the semiannual principal and interest payments for the general obligation bonds issued to finance street improvements within the City.
The City reported the following major proprietary funds:
Water Fund
This fund accounts for the activities of providing water to residents of the City.
Wastewater Fund
This fund accounts for the activities associated with the sewage treatment plant, pumping stations, and collection systems.
Water Conservation Fund
This fund accounts for water conservation fees and is restricted to improving water conservation within the City.
D. Basis of Accounting
The government-wide, proprietary funds, and fiduciary funds financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting.
Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under financed purchases are reported as other financing sources.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
41 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting (Continued)
reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures/expenses. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
E. Compensated Absences
In compliance with Governmental Accounting Standards Board Statement No. 16, the City has established a liability for accrued sick leave and vacation in relevant funds. For governmental type funds, the current liability appears in the respective funds. All vacation paid is accrued when incurred in the government-wide and proprietary funds financial statements. This liability is set up for the current employees at the current rates of pay. If sick leave and vacation are not used by the employee during the term of employment, compensation is payable to the employee at the time of retirement. Sick leave is only payable to employees participating in the Public Employees’ Retirement System. Such compensation is calculated at the employee’s prevailing rate at the time of retirement or termination. Each fiscal year, an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The General Fund is primarily responsible for the repayment of the governmental portion of compensated absences.
F. Property Taxes
California Constitution Article XIII A limits the combined property tax rate to one percent of a property’s assessed valuation. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property’s fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership occurs.
The State Legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions.
Property tax revenues are recognized in the fiscal year for which taxes have been levied and collected within sixty days of fiscal year end. Property taxes are billed and collected as follows on the next page:
Secured Unsecured
Valuation/Lien Date(s) January 1 January 1
Levy Date(s) July 1 July 1
Due Date(s) November 1 (50%) August 1
February 1 (50%)
Delinquency Date(s) December 10 (November) August 31
April 10 (February)
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
42 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair value on the date contributed. Any donated capital assets or donated works of art and similar items are valued at their acquisition value rather than fair value. Any capital assets received in a service concession arrangement are valued at their acquisition value. The City’s policy is to capitalize all capital assets with costs exceeding the minimum thresholds at $5,000, except for infrastructure at $25,000 and with useful lives exceeding one year.
With the implementation of GASB Statement No. 34, the City was not required to record infrastructure assets existing or acquired prior to July 1, 2001. The City elected not to record such infrastructure assets. The City may elect to record such infrastructure assets in the future.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each fiscal year represents that fiscal year’s pro rata share of the cost of capital assets. GASB Statement No. 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives.
Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each fiscal year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets.
Structures and Improvements 50 years
Equipment 5-25 years
Infrastructure 15-50 years
H. Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognizes deferred outflows and inflows of resources.
In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources represent a consumption of net assets that applies to future periods. The City has one item which qualifies for reporting in this category, refer to Note 7 for a detailed listing of the deferred outflows of resources the City has recognized.
In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. A deferred inflow of resources represent an acquisition of net assets that applies to future periods. The City has two items which qualify for reporting in this category; refer to Note 7 and Note 15 for a detailed listing of the deferred inflows of resources the City has recognized.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
43 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenditures, or expenses as appropriate. Actual results could differ from those estimates.
J. Cash Equivalents
For purposes of the Statement of Cash Flows, the City considers all highly liquid investment instruments purchased with a maturity of three months or less to be cash equivalents.
K. Fund Balances
Fund balances of the governmental funds are classified as follows:
Nonspendable Fund Balance – represents amounts that cannot be spent because they are either not in spendable form (such as inventory or prepaid insurance) or legally required to remain intact (such as notes receivable or principal of a permanent fund).
Restricted Fund Balance – represents amounts that are constrained by external parties, constitutional provisions or enabling legislation.
Committed Fund Balance – represents amounts that can only be used for a specific purpose because of a formal action by the City’s governing board. Committed amounts cannot be used for any other purpose unless the governing board removes those constraints by taking the same type of formal action. Committed fund balance amounts may be used for other purposes with appropriate due process by the governing board. Commitments are typically done through adoption and amendment of the budget. Committed fund balance amounts differ from restricted balances in that the constraints on their use do not come from outside parties, constitutional provisions, or enabling legislation.
Assigned Fund Balance – represents amounts which the City intends to use for a specific purpose, but that do not meet the criteria to be classified as restricted or committed. Intent may be stipulated by the governing board or by an official or body to which the governing board delegates the authority. Specific amounts that are not restricted or committed in a special revenue, capital projects, debt service, or permanent fund are assigned for purposes in accordance with the nature of their fund type or the fund’s primary purpose. Assignments within the general fund conveys that the intended use of those amounts is for a specific purpose that is narrower than the general purpose of the City.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
44 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Fund Balances (Continued)
Unassigned Fund Balance – represents amounts which are unconstrained in that they may be spent for any purpose. Only the general fund reports a positive unassigned fund balance. Other governmental funds might report a negative balance in this classification because of overspending for specific purposes for which amounts had been restricted, committed, or assigned.
When an expenditure is incurred for a purpose for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds.
L. Net Position
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted.
Net position that is net investment in capital assets consist of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Unspent bond proceeds should be reported as either restricted or unrestricted assets, as appropriate, and the related portion of the bonded debt should be reported in the same component of net position as the unspent proceeds, and therefore will not have any net effect on any classifications of net position.
Restricted net position is the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislations. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position.
M. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City California Public Employees’ Retirement System (CalPERS) Miscellaneous and Safety Plans and additions to/deductions from Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund is primarily responsible for the repayment of the governmental portion of the pension liability.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
45 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Accounting Pronouncements
O. Leases
Lessee: The City is a lessee for a noncancellable lease of equipment. The City of Grover Beach recognizes a lease liability and an intangible right-to-use lease asset in the government-wide financial statements. The City recognizes lease liabilities with an initial individual value of $50,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of the lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
GASB Accounting Pronouncements
GASB Statements listed below were implemented in the current year financial statements:
Statement No. 99 "Omnibus 2022" The remaining provisions of this statement are effective for financial statements starting with the fiscal year that ends June 30, 2024.
Implementation did not have an impact on these financial statements.
Statement No. 100 "Accounting Changes and The provisions of this statement are effective for financial statements Error Corrections" starting with the fiscal year that ends June 30, 2024.
Implementation did not have an impact on these financial statements.
GASB Statements listed below will be implemented in future year financial statements:
Statement No. 101 "Compensated Abesenses" The provisions of this statement are effective for financial statement starting with the fiscal year that ends June 30, 2025.
Statement No. 102 "Certain Risk Disclosures" The provisions of this statement are effective for financial statement starting with the fiscal year that ends June 30, 2025.
Statement No. 103 "Financial Reporting Model The provisions of this statement are effective for financial Improvements" statement starting with the fiscal year that ends June 30, 2026.
Statement No. 104 "Disclosure of Certain Capital The provisions of this statement are effective for financial Assets" statement starting with the fiscal year that ends June 30, 2026.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
46 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. Leases (continued)
Key estimates and judgements related to leases include how the City determines 1) the discount rate it uses to discount the expected lease payments to present value, 2) lease term, and 3) lease payments,
x The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
x The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with the other capital assets and lease liabilities are reported with longterm debt on the statement of net position.
P. Subscription-Based Assets and Liabilities
The City accounts for Subscription-Based Information Technology Arrangements (“SBITAs”) in accordance with GASB Statement No. 96, Subscription-Based Information Technology Arrangements, which was implemented by the City for the year ended June 30, 2023. This statement provides guidance on accounting and financial reporting for SBITAs for government end users. SBITAs are defined as a contract that conveys control of the right to use another party’s information technology (IT) software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction.
A government is required to recognize a right-to-use subscription asset – an intangible asset – and a corresponding subscription liability. The subscription liability is measured at the present value of the subscription payments expected to be made during the subscription term. Future payments are discounted using an incremental borrowing rate of 2.656%.
The City’s right of use SBITAs is included in capital assets on the Statement of Net Position. See Note 4. See Note 6 for information on the City’s SBITA activities and balances for the year ended June 30, 2024.
Q. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the Government-wide and Fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than purchased.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
47 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for governmental funds. The City’s budget ordinance requires that by June 1st each year, the City Manager must submit a preliminary budget that includes projected expenditures and the means of financing them, to the City Council for the fiscal year commencing the following July 1. As modified during public study sessions, the preliminary budget becomes the proposed budget. Following public hearings on the proposed budget, the final annual budget is adopted by the City Council in June of the next fiscal year. After adoption of the final budget, transfers of appropriations within a general fund department, or within other funds, can be made by the City Manager.
Budgeted expenditures may be reallocated within a fund by the City Manager, and within a department program by the department director, but any inter-fund transfers or reallocation must be approved by resolution of the City Council. Numerous properly authorized amendments are made during the fiscal year. Budgetary control is enhanced by integrating the budget into the general ledger accounts. Encumbrance accounting is employed (e.g., purchase orders) to avoid expenditures over budget. Encumbrances outstanding at fiscal year-end are automatically rebudgeted in the following fiscal year.
The City is not required to adopt an annual budget for the Street Improvement Debt Service Fund as part of its budgetary process. Historically, the budget comparison for the Debt Service Fund has not been presented in the financial statements. Accordingly, the City does not include a budgetto-actual comparison for the Street Improvement Debt Service Fund in accordance with the Governmental Accounting Standards Board (GASB) standards.
This is consistent with the City's practice and reflects the City's unique financial structure and operational requirements.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
48 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) B. Excess of Expenditures Over Appropriations
Excess of expenditures over appropriations in individual funds are as follows:
NOTE 3 – CASH AND INVESTMENTS
Cash and investments are classified in the financial statements as shown below, based on whether their use is restricted under the terms of the City’s debt instruments or Agency’s agreements:
On June 30, 2024, the City had the following cash and investments on hand:
Major Funds:
General Fund:
General government $ 863,695
Community development $ 4,573,362
Capital outlay $ 195,250
Street Rehabilitation and Repair Fund:
Public works $ 2,185,659
Nonmajor Funds:
Special Revenue Funds:
General government $ 10,650
Public safety $ 97,765
Community development $ 592,261
Public works $ 95,237
Capital outlay $ 119,944
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
49 NOTE 3 – CASH AND INVESTMENTS (Continued)
Fair Value Measurements
The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. Investment securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Investment securities classified in Level 2 of the fair value hierarchy are valued using matrix pricing or market corroborated pricing. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Investment securities classified in Level 3 of the fair value hierarchy are valued using significant unobservable inputs.
At June 30, 2024, the City had investments in money market funds and the San Luis Obispo County Investment Pool which are measured under Level 2 of the fair value hierarchy. The City’s investments in US Agency securities and US Corporate Note Obligations are classified in Level 2 of the fair value hierarchy and are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. The City’s remaining investments are held in the Local Agency Investment Fund (LAIF), which is not subject to the fair value hierarchy.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
50 NOTE 3 – CASH AND INVESTMENTS (Continued)
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code. The table also identifies certain provisions of the California Government Code that address interest rate risk, credit risk, and concentration of credit risk.
Authorized
Investment Type
Maximum
Maturity
Maximum
Percentage Of
Portfolio
Maximum
Investment
in One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years 60% None
U.S. Agency Securities 5 years None None
Bankers' Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 1 year 20% None
Repurchase Agreements 1 year None None
Reverse Repurchase Agreements 92 days 20% of base value None Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Funds N/A 20% 10%
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (other investment pools) N/A None None
Guaranteed Investment Contracts 15 months None None
Canadian Government Obligations 5 years None None
Investments Authorized by Debt Agreements
Investment of note proceeds held by note trustees are governed by the provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table on the following page identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Authorized
Investment Type
Maximum
Maturity
Maximum
Percentage
Of
Portfolio
Maximum
Investment
in One Issuer
Money market accounts N/A None None
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
51 NOTE 3 – CASH AND INVESTMENTS (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of rating by a nationally recognized statistical rating organization. Presented on the following page is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
52 NOTE 3 – CASH AND INVESTMENTS (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of total City’s investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under State law (unless waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
None of the City’s deposits with financial institutions in excess of the Federal Depository Insurance Corporation’s limits were held in uncollateralized accounts.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities with mutual funds or government investment pools (such as LAIF or the San Luis Obispo County Investment Pool).
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying basic financial statements at the amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
53 NOTE 4 – CAPITAL ASSETS
Capital asset activity for the City’s governmental activities for the fiscal year ended June 30, 2024, is as follows:
Capital asset activity for the City’s business-type activities for the fiscal year ended June 30, 2024, is as follows:
Balance
June 30, 2023 Additions Deletions
Transfers/
Reclass
Balance
June 30, 2024
Non-depreciable capital assets
Land 1,890,915 $ - $ - $ 1,890,915 $
Construction in progress 1,137,457 769,375 (65,811) 1,841,021 Total nondepreciable capital assets 3,028,372 $ $ 769,375 -$ $ (65,811) $ 3,731,936 Depreciable and amortizable capital assets
Equipment $ 3,365,575 $ 990,120 $ (85,960) $ 4,269,735
Right-to-use leased assets 511,505 511,505
Subscription intangible asset 363,268 189,528 552,796
Buildings and improvements 26,737,547 65,811 26,803,358 Total depreciable and amortizable
capital assets 1,691,153 30,466,390 (85,960) 65,811 32,137,394 Accumulated depreciation/amortization
Equipment 2,140,455 392,658 $ (85,960) 2,447,153
Right-to-use leased assets 36,536 36,536
Subscription intangible asset 53,145 72,654 125,799
Buildings and improvements 8,376,969 708,871 9,085,840
Total accumulated depreciation 10,570,569 1,210,719 (85,960) 11,695,328 Net depreciable and amortizable
capital assets $ 480,434 19,895,821 $ -$ $ 65,811 $ 20,442,066 Net capital assets $ 22,924,193 $ 1,249,809 $ - $ 24,174,002 - $ Balance
June 30, 2023 Additions Deletions Transfers/Reclass
Balance
June 30, 2024
Non-depreciable capital assets
Land 260,849 $ - $ -$ $ 260,849 - $
Construction in progress 293,784 114,745 408,529
Total nondepreciable capital assets 554,633 $ $ 114,745 -$ $ 669,378 - $ Depreciable capital assets
Capacity rights $ 1,598,578 $ - -$ $ 1,598,578 - $
Equipment 779,228 779,228
Right of use leased asset 73,072 73,072
Infrastructure 14,134,134 14,134,134 -
Total depreciable capital assets 16,511,940 73,072 - 16,585,012 - Accumulated depreciation
Capacity rights 1,030,292 1,054,911 24,619
Equipment 589,562 641,904 52,342
Right of use leased asset 5,220 5,220
Infrastructure 6,481,684 6,726,581 244,897
Total accumulated depreciation 8,101,538 327,078 - 8,428,616 - Net depreciable capital assets $ 8,410,402 $ (254,006) -$ $ 8,156,396 - $ Net capital assets $ 8,965,035 $ (139,261) -$ $ 8,825,774 - $
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
54 NOTE 4 – CAPITAL ASSETS (Continued)
Depreciation expense the City’s governmental and business-type activities for the fiscal year ended June 30, 2024, is as follows:
NOTE 5 – INTERFUND TRANSACTIONS
Due from/due to:
There was no Due to, Due from for Fiscal Year 2023-24.
Advances from/to other funds:
Advances receivable and payable constitute long-term borrowing between funds. Each advance carries a state interest rate and has scheduled debt service payments. Interfund advances receivable and payable balance on June 30, 2024, are as follows:
Interfund transfers:
During the year, transfers are mainly used to move overhead cost allocations from the Enterprise Funds to the General Fund and move funding from various funds to pay for capital improvement projects.
Enterprise
Fund
Enterprise
Fund
Enterprise
Fund
General
Fund
Street
Rehabilitation
and Repair
Fund
Nonmajor
Governmental
Funds
Water
Fund
Water
Conservation
Fund
Wastewater
Fund Total
Transfers out:
General Fund - $ -$ $ 528,987 -$ -$ -$ 528,987$
Nonmajor Governmental Funds 17,000 529,660 25,000 6,106 577,766 Enterprise Fund-Water Fund 417,209 38,000 37,290 492,499 Enterprise Fund-Wastewater Fund 202,208 37,800 240,008
Total $ 38,000 636,417 $ $ 1,133,737 25,000$ -$ $ 1,839,260 6,106 $ Transfers in:
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
55 NOTE 6 – LONG-TERM LIABILITIES
Changes in Long-Term Liabilities
Long-term liability activity for the fiscal year ended June 30, 2024, was as follows:
Compensated Absences
Governmental Accounting Standards Board Statement No. 16 identifies certain items that should be accrued as a liability as the benefits are earned by the employees but only to the extent it is probable that the employer will compensate the employees for the benefits through cash payments conditioned on the employee’s termination or retirement.
City employees accumulate earned but unused benefits which can be converted to cash at termination of employment. The non-current portion of these vested benefits, payable in accordance with various collective bargaining agreements, on June 30, 2024, total $809,453 for governmental activities and $139,181 for business-type activities.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
56 NOTE 6 – LONG-TERM LIABILITIES (Continued)
State Loan
The City entered into a loan agreement with the California Energy Resources Conservation and Development commission for an energy savings project. Loan funds were disbursed on a reimbursement basis. The project was completed on December 31, 2011. Loan payments began on December 22, 2012, and terminate December 22, 2026, with an annual interest rate of 1.00% payable on a semi-annual basis.
Future minimum payment obligations for the loan payable on June 30, 2024, are as follows:
General Obligation Bonds
The City is authorized to issue general obligation bonds in an amount not to exceed $48,000,000 to finance improvements to streets within the City. The bonds were authorized at an election of the registered voters of the City held on November 4, 2014.
On March 10, 2015, the City issued $5,000,000 of those bonds at a premium of $376,225. The bonds are payable semiannually on March 1 and September 1 of each year with interest rates varying from 3% to 5%. The bonds are subject to optional and mandatory redemption prior to maturity. As of June 30, 2024, $3,935,000 was still outstanding.
Future minimum payment obligations for the bonds on June 30, 2024, are as follows:
Fiscal year Ending June 30 Principal Interest Total
2025 $ 25,050 $ 568 $ 25,618
2026 25,302 318 25,620
2027 12,746 66 12,812
$ 63,098 $ 952 $ 64,050
Fiscal year Ending June 30 Principal Interest Total
2025 $ 165,000 $ 147,056 $ 312,056
2026 175,000 138,556 313,556
2027 180,000 129,681 309,681
2028 190,000 120,432 310,432
2029 200,000 110,682 310,682
2030-2034 1,115,000 446,151 1,561,151
2035-2039 1,310,000 247,181 1,557,181
2040-2041 600,000 24,200 624,200
$ 3,935,000 $ 1,363,939 $ 5,298,939
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
57 NOTE 6 – LONG-TERM LIABILITIES (Continued)
General Obligation Bonds (Continued)
On April 16, 2016, the City issued $8,000,000 of those bonds at a premium of $509,358. The bonds are payable semiannually on March 1 and September 1 of each year with interest rates varying from 2% to 5%. The bonds are subject to optional and mandatory redemption prior to maturity. As of June 30, 2024, $6,470,000 was still outstanding.
Future minimum payment obligations for the bonds on June 30, 2024, are as follows:
On December 5, 2017, the City issued $15,000,000 of those bonds at a premium of $1,110,466. The bonds are payable semiannually on March 1 and September 1 of each year with interest rates varying from 3% to 5%. The bonds are subject to optional and mandatory redemption prior to maturity. As of June 30, 2024, $13,145,000 was still outstanding.
Future minimum payment obligations for the bonds on June 30, 2024, are as follows:
Fiscal year Ending June 30 Principal Interest Total
2025 $ 260,000 $ 213,344 $ 473,344
2026 270,000 200,094 470,094
2027 285,000 186,219 471,219
2028 300,000 173,094 473,094
2029 310,000 160,894 470,894
2030-2034 1,715,000 647,995 2,362,995
2035-2039 1,985,000 370,532 2,355,532
2040-2042 1,345,000 66,110 1,411,110
$ 6,470,000 $ 2,018,282 $ 8,488,282
Fiscal year Ending June 30 Principal Interest Total
2025 $ 430,000 $ 471,600 $ 901,600
2026 450,000 449,600 899,600
2027 470,000 426,600 896,600
2028 495,000 402,475 897,475
2029 520,000 377,100 897,100
2030-2034 3,010,000 1,474,550 4,484,550
2035-2039 3,595,000 902,175 4,497,175
2040-2044 4,175,000 320,625 4,495,625
-
$ 13,145,000 $ 4,824,725 $ 17,969,725
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
58 NOTE 6 – LONG-TERM LIABILITIES (Continued)
On January 26, 2022, the City issued $10,000,000 of those bonds at a premium of $1,457,191. The bonds are payable semiannually on March 1 and September 1 of each year with interest rates varying from 3% to 5%. The bonds are subject to optional and mandatory redemption prior to maturity. As of June 30, 2024, $10,000,000 was still outstanding.
Future minimum payment for the bonds on June 30, 2024, are as follows:
Water Revenue Bond
On February 26, 2020, the City issued $4,456,000 of water revenue bonds to use for capital projects. The bonds are payable semiannually on March 1 and September 1 of each year with an interest rate of 2.43%.
As of June 30, 2024, $3,730,000 is still outstanding.
Future minimum payment for the bonds on June 30, 2024, are as follows:
Fiscal year Ending June 30 Principal Interest Total
2025 $ 363,800 $ 363,800
2026 363,800 363,800
2027 15,000 363,800 378,800
2028 15,000 363,350 378,350
2029 15,000 362,900 377,900
2030-2034 90,000 1,804,800 1,894,800
2035-2039 100,000 1,786,850 1,886,850
2040-2044 2,085,000 1,698,600 3,783,600
2045-2048 7,680,000 642,200 8,322,200
$ 10,000,000 $ 7,750,100 $ 17,750,100
Fiscal year Ending June 30 Principal Interest Total
2025 $ 193,000 $ 88,293 $ 281,293
2026 198,000 83,542 281,542
2027 203,000 78,670 281,670
2028 208,000 73,677 281,677
2029 213,000 68,562 281,562
2030-2034 1,145,000 261,670 1,406,670
2035-2039 1,292,000 113,792 1,405,792
2040 278,000 3,377 281,377
$ 3,730,000 $ 771,583 4,501,583
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
59 NOTE 6 – LONG-TERM LIABILITIES (Continued)
The City has pledged future water system revenues, net of specific operating expenses, to repay the bonds on parity with a pledge that services all parity obligations. The bonds are payable solely from water customer net revenues. For the year ended June 30, 2024, principal and interest paid, and total customer net revenues were $280,822 and $618,493,respectively. This debt issue is subject to a reserve requirement in conjunction with parity debt issued by the City. The City is in compliance with the revenue rate covenant requiring net revenues of the water system to be at least equal to 1.2 times the amount necessary to pay principal and interest on the bonds and all other parity bonds.
Lease-Purchase Financing
In Fiscal Year 23-24, the City entered into a lease-purchase agreement for the acquisition of six patrol vehicles for the Police Department. The initial lease liability recorded for this agreement is $655,527. In Fiscal Year 21-22, the City entered into a five-year lease agreement as lessee for the acquisition of a command post vehicle for the Police Department. An initial lease liability of $371,147 was recorded during Fiscal Year 21-22. The annual principal and interest payments for both leases are due on March 28 of each year, with an interest rate of 3.095%.
Future minimum lease payments are as follows:
Lease Liability
In Fiscal Year 23-24, the City entered into a lease agreement for the property located at 45 Newport Ave, which commenced on September 12, 2023. The lease liability, initially recorded at $530,479, includes the total amount owed over the lease term, reflecting the present value of future payments. Monthly payments are due on the 1st of every month, beginning in January 2024.
While the lease does not require direct interest payments to the vendor, the liability is calculated to include an interest component as part of the lease cost. This is consistent with GASB 87, which requires that the interest portion be recognized as part of the lease liability, even if no separate interest is paid to the vendor.
Fiscal year Ending June 30 Principal Interest Total
2025 $ 178,506 43,353$ 221,859$
2026 186,755 35,104 221,859
2027 195,406 26,453 221,859
2028 204,482 17,379 221,861
2029 145,271 7,859 153,130
Totals $ 910,420 $ 1,040,568 130,148 $
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
60 NOTE 6 – LONG-TERM LIABILITIES (Continued)
Lease Liability (Continued)
This lease is partially funded by both government-wide funds and enterprise funds.
Future minimum lease payments are as follows:
Government-wide funded
Enterprise funded
Subscriptions Liability
In Fiscal Year 22-23, the City entered into a 36 month subscription for the use of an ERP system. An initial subscription liability was recorded in the amount of $344,613. As of June 30, 2024, the value of the subscription liability is $114,845. The City is required to make annual fixed payments of $117,895. The subscription has an interest rate of 2.6560%. The value of the right to use the asset as of June 30, 2024 is $183,033 with accumulated amortization of $ 121,089. Future payments are as follows:
Fiscal year Ending June 30 Principal Interest Total
2025 96,092 $ 11,166 $ 107,258 $
2026 98,975 8,703 107,678
2027 101,944 6,085 108,029
2028 105,002 3,307 108,309
2029 62,156 580 62,736
Totals $ 464,169 29,841$ $ 494,010
Fiscal year Ending June 30 Principal Interest Total
2025 13,728 $ 1,595$ $ 15,323
2026 14,139 1,243 15,382
2027 14,563 869 15,432
2028 15,000 473 15,473
2029 8,880 83 8,963
Totals $ 66,310 4,263$ $ 70,573
Fiscal year Ending June 30, 2024 Principal Interest Total 2025 114,845 3,050 117,895
Totals $ 114,845 3,050$ 117,895$
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
61 NOTE 7 – PENSION PLANS
A. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (Police and Fire) or Miscellaneous Employee Pension Plans (Plans), cost-sharing multiple employer defined benefit plans administered by the California Public Employees’ Retirement System (CalPERS).
Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
62 NOTE 7 – PENSION PLANS (Continued)
A. General Information about the Pension Plans (Continued) The Plans’ provisions and benefits in effect on June 30, 2024, are summarized as follows:
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
63 NOTE 7 – PENSION PLANS (Continued)
A. General Information about the Pension Plans (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2024, the contributions recognized as part of pension expense for each Plan were as follows:
On June 30, 2024, the City reported net pension liabilities for its proportionate shares of the net position liability of each Plan as follows:
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all Pension Plan participants, actuarially determined.
Miscellaneous Safety
Contributions-employer $ 1,008,890 $ 898,454
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
64 NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
On June 30, 2024, the City’s proportionate share of the net pension liability for each Plan as of June 30, 2023, and June 30, 2024, was as follows:
For the year ended June 30, 2024, the City recognized pension expense (income) of $1,397,591 for the Miscellaneous Plan and $1,397,652 for the Safety Plan. Pension expense (income) represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits. On June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pension as follows:
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
65 NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred outflows of resources and deferred inflows of resources above represent the unamortized portion of changes to net pension liability to be recognized in future periods in a systematic and rational manner.
Deferred outflows of resources related to pensions resulting from City contributions made subsequent to the measurement date of the net pension liability but before the end of the City’s reporting period of $ 1,001,485 and $ 935,855 for the Miscellaneous and Safety Plans, respectively, will be recognized as a reduction of the net pension liability in the year June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in the pension expenses as follows:
Actuarial Assumptions
The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability using the following actuarial assumptions on the next page:
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
66 Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investment was applied to all periods of projected benefit payments to determine the total pension liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS considered both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11 + years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
67 NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The table below reflects the long-term expected real rate of return by asset class.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
68 NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in Discount Rate The following represents the City’s proportionate share of the net pension liability calculated using the discount rate of 6.90 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent) or 1- percentage point higher (7.90 percent) than the current rate:
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
C. Payable to the Pension Plan
On June 30, 2024, the City had no amount outstanding for contributions to the pension plan required for the fiscal year ended June 30, 2024.
NOTE 8 – OTHER POST EMPLOYMENT BENEFITS
The City provided an early retirement incentive under extremely specific criteria. Five employees qualified and opted to take the early retirement incentive. The City is refunding the employee’s medical costs up to $500 per month until eligible for Medicare. The maximum potential liability as of June 30, 2024, was $ 8,725.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
69 NOTE 9 – LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Grover Beach is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
B. Primary Self-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risksharing pool.
Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $3 million for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $3 million to $30 million for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $30 million to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $50 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website:
https://cjpia.org/coverage/risk-sharing-pools/.
Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
70 A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $1 million for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $1 million to $2 million for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $2 million to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For FY 2023-24 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
C. Purchased Insurance
Property Insurance
The City of Grover Beach participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Grover Beach property is currently insured according to a schedule of covered property submitted by the City of Grover Beach to the Authority. City of Grover Beach property currently has all-risk property insurance protection in the amount of $50 million. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in FY 2023-24.
NOTE 10 – CONTINGENCIES AND COMMITMENTS
The City is involved in various litigations. In the opinion of management and legal counsel, the disposition of all litigations pending will not have a material effect on the City’s financial statements.
The City has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material. The City had the following construction contracts as of June 30, 2024: $ 8,393,055 for Measure K-14 Street Rehabilitation and Repair projects and $1,000,000 in reservoir maintenance .
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
71 NOTE 11 – REVENUE LIMITATIONS IMPOSED BY CALIFORNIA PROPOSITION 218 Proposition 218, which was approved by the voters in November 1996, will regulate the City’s ability to impose, increase, and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future years by the voters.
NOTE 12 – JOINT OPERATING AGREEMENTS
Wastewater operations. The City does not own and operate a separate wastewater treatment plant facility. Pursuant to a purchase agreement with the South San Luis Obispo County Sanitation District, the City’s waste is transported through City-owned, and City maintained lines for processing at the District’s plant. The City purchased up to 30 percent of the District’s treatment plant capacity. The cost of this purchased capacity is recorded as a capital asset of the wastewater enterprise, and this cost is being amortized to expense over 20 years using the straight-line method. The City is also obligated to pay to the District the costs of maintaining and operating the District’s plant, based upon the number of City’s customers, times certain rates, and such operating costs are to be paid monthly by the City. The City records such operating costs as expenses in its wastewater enterprise.
Water operations. The San Luis Obispo County Flood Control and Water Conservation District, a countywide agency, issued voter-approved general obligation bonds for the purpose of building Lopez Dam, a storage reservoir, water treatment plant, and other facilities to provide a primary municipal water supply.
The City has entered into a water supply agreement wherein the City has agreed to pay annually, regardless of water deliveries, a prorated percentage of certain costs. In addition, the City also pays the District a prorated share of operating, maintenance, pumping, and related operating costs which expensed in the City’s water enterprise fund.
NOTE 13 – FIVE CITIES FIRE AUTHORITY
The City of Grover Beach is a member of the Five Cities Fire Authority (FCFA), a joint powers authority between the Cities of Arroyo Grande, Grover Beach, and the Oceano Community Services District. FCFA was formed on July 9, 2010, for the purpose of providing a more efficient fire protection service within the City limits of Arroyo Grande and Grover Beach, as well as the towns of Oceano and Halcyon which are unincorporated areas of San Luis Obispo County. Each member contributes its pro rate share of operating costs to FCFA based on a funding formula, calculated annually. The FCFA governing board consists of one member appointed from each participating entity and shall be appointed as determined by the respective City Council or Board of Directors. All financial decisions are made by this three-member board. The City of Grover Beach contributed $ 2,812,000 to FCFA during the fiscal year ended June 30, 2024, for fire protections services. Separate financial statements may be obtained from the Five Cities Fire Authority at 140 Traffic Way in Arroyo Grande, California.
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
72 Note 14 – INVESTMENT IN JOINT POWERS AGREEMENT
In September 2022, the City entered into the Central Coast Blue Regional Recycled Water Authority Joint Powers Authority (JPA) with the Cities of Arroyo Grande and Pismo Beach. The purpose of the JPA was to construct a regional recycled water project aimed at enhancing supply reliability by injecting advanced purified water into the Northern Cities Management Area of the Santa Maria Groundwater Basin. The JPA was also responsible for overseeing and managing the planning and implementation, including but not limited to construction, operation, and administration of the project. The City of Pismo Beach served as the lead agency for the design and construction of the project and covered all associated costs until the project’s completion. In accordance with the cost-sharing agreement among the JPA members, the City of Pismo Beach billed each member for their proportionate share of the costs throughout the construction phase.
During the year ended June 30, 2024, the City reimbursed the City of Pismo Beach $302,753 for its share of the design and pre-construction costs incurred for the project. These costs were presented as operating expenses in the Water Fund for the year ended June 30, 2024.
As of May 13, 2024, the City withdrew from participation in the JPA. Consequently, the City no longer holds an investment in the JPA and will make no further contributions.
In accordance with the withdrawal, the City has written off its remaining investment in the JPA in the amount of $657,170. This loss has been recognized as a nonoperating expense in the Water Fund for the year ended June 30, 2024. Additionally, costs related to the City’s participation in the JPA, including but not limited to the $422,541 incurred for services related to the project, are reflected in the service expense line item, which include the $302,753 reimbursement to the City of Pismo Beach.
NOTE 15 – SUCCESSOR AGENCY
Bonds Payable
On December 8, 2005, the former Improvement Agency issued $4,390,000 of 2005 tax allocation bonds to refund the outstanding balance of the 2001 tax allocation notes and pay the costs of redevelopment activities within the Agency’s Improvement Project. The bonds are secured by a pledge of the Agency’s tax increment revenues excluding to be paid to other taxing authorities, pursuant to pass-through agreements, bear interest from 3.25 to 5.00 percent, and mature on August 1, 2035. On February 1, 2014, the Successor Agency assumed the tax allocation bonds previously held by the former Improvement Agency. As of June 30, 2024, the principal balance was $2,525,000.
The future minimum payment obligations for the bonds payable on June 30, 2024, are presented on the following page:
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
73 NOTE 15 – SUCCESSOR AGENCY (Continued)
Loan Payable
On February 1, 2015, the Successor Agency assumed loans due to the City of Grover Beach previously held by the former Improvement Agency. There is no formal payment schedule. Loan payments are made when monies become available, with an annual interest rate of 0.5%. The amount due to the City of Grover Beach as of June 30, 2024, was $29,869.
Changes in Long-Term Liabilities
Long term liability activity for the fiscal year ended June 30, 2024, are as follows:
Fiscal year Ending June 30 Principal Interest Total
2025 160,000 $ $ 130,000 $ 290,000
2026 165,000 122,250 287,250
2027 175,000 114,125 289,125
2028 185,000 105,625 290,625
2029 195,000 96,625 291,625
2030-2034 1,115,000 332,125 1,447,125
2035-2036 530,000 59,375 589,375
$ 2,525,000 $ 960,125 $ 3,485,125
Balance Balance Due Within
July 1, 2023 Additions Deletions June 30, 2024 One Year Tax allocation bonds 2,675,000 $ $ 150,000 $ 2,525,000 $ 160,000 Loan payable 29,869 29,869
$ 2,704,869 -$ 150,000 $ $ 2,554,869 $ 160,000
CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2024
74 NOTE 16 – DEFERRED INFLOWS OF RESOURCES
On June 30, 2024, deferred inflows of resources, reported in the governmental fund financial statements, consisted of the following:
Home
Grant Fund Total
Unavailable Revenue 333,975 $ 333,975 $
$ 333,975 333,975 $
NOTE 17 – SUBSEQUENT EVENTS
Events subsequent to June 30, 2024 have been evaluated through December 19, 2024 which is the date the financial statements were available to be issued. Management did not identify any subsequent events requiring disclosure.
CITY OF GROVER BEACH
Required Supplemental Information
June 30, 2024
75 Budgetary Information
Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the efficient and effective use of the City’s economic resources, as well as establishing that the highest priority objectives are accomplished.
The Annual budget serves the fiscal period July 1 to June 30 and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of effective financial planning.
The City prepares a two-year budget. The City Council adopts governmental fund budgets consistent with generally accepted accounting principles as legally required.
The City Council generally reauthorizes appropriations for continuing projects and activities. The City Council has the legal authority to amend the budget of any fund, at any time during the fiscal year. The budgetary legal level of control (the level on which expenditures may not legally exceed appropriations) is generally at the fund level. Budgeted expenditures may be reallocated within a fund by the City Manager, and within a department program by the department director, but any inter-fund transfers or reallocation must be approved by resolution of the City Council.
The City is not required to adopt an annual budget for the Street Improvement Debt Service Fund as part of its budgetary process. Historically, the budget comparison for the Debt Service Fund has not been presented in the financial statements. Accordingly, the City does not include a budget-to-actual comparison for the Street Improvement Debt Service Fund in accordance with the Governmental Accounting Standards Board (GASB) standards.
This is consistent with the City's practice and reflects the City's unique financial structure and operational requirements.
CITY OF GROVER BEACH
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
For the Fiscal Year Ended June 30, 2024
Original Final Actual Amounts
Variance with
Final Budget
Positive
(Negative)
Revenues:
Taxes $ 15,014,700 $ 15,014,700 $ 14,526,218 $ (488,482) Licenses, permits, and fees 386,300 386,300 514,705 128,405 Intergovernmental 1,014,600 1,014,600 7,394,417 6,379,817 Charges for services 984,800 984,800 730,264 (254,536)
Fines and forfeitures 47,400 47,400 37,838 (9,562)
Use of money and property 341,300 341,300 586,589 245,289 Other 840,000 840,000 2,183 (837,817)
Total revenues 18,629,100 18,629,100 23,792,214 5,163,114 Expenditures:
General government 7,016,519 7,042,039 7,905,734 (863,695) Public safety 7,430,852 7,936,852 6,680,356 1,256,496
Community development 1,238,496 1,238,496 5,811,858 (4,573,362) Public works 1,479,789 1,485,789 1,462,540 23,249
Capital Outlay 1,591,000 1,591,000 1,786,250 (195,250)
Debt service: -
Principal 83,813 83,813 83,813 -
Interest 18,733 18,733 18,733 -
Total expenditures 18,859,202 19,396,722 23,749,284 (4,352,562) Excess of revenues over (under) expenditures (230,102) (767,622) 42,930 9,515,676 Other Financing Sources (Uses):
Subscription financing 43,200 43,200 1,167,032 1,123,832 Transfers in 796,234 496,234 636,417 140,183
Transfers out (1,591,000) (1,591,000) (528,987) 1,062,013 Total other financing sources (uses) (751,566) (1,051,566) 1,274,462 2,326,028 Net change in fund balances (981,668) (1,819,188) 1,317,392 11,841,704 Fund balance - July 1 7,488,213 7,488,213 7,488,213
Fund balance - June 30 $ 6,506,545 $ 5,669,025 $ 8,805,605 $ 11,841,704 Budgeted Amounts
7ϲ
CITY OF GROVER BEACH
STREET REHABILITATION AND REPAIR FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET TO ACTUAL
For the Fiscal Year Ended June 30, 2024
Original Final Actual Amounts
Variance with
Final Budget
Positive
(Negative)
Revenues:
Charges for services $ 50,000 $ 50,000 $ - $ (50,000)
Use of money and property 20,000 20,000 211,883 191,883 Intergovernmental 799 799
Total revenues 70,000 70,000 212,682 142,682
Expenditures:
Public works 238,812 238,812 2,424,471 (2,185,659)
Capital outlay 2,246,500 2,246,500 - 2,246,500
Total expenditures 2,485,312 2,485,312 2,424,471 60,841 Excess of revenues over (under) expenditures (2,415,312) (2,415,312) (2,211,789) 81,841 Other Financing Sources (Uses):
Transfers in 30,000 30,000 38,000 8,000
Total other financing sources (uses) 30,000 30,000 38,000 8,000 Net change in fund balance (2,385,312) (2,385,312) (2,173,789) 89,841 Fund balance - July 1 2,425,486 2,380,486 5,838,955
Fund balance - June 30 $ 40,174 $ (4,826) $ 3,665,166 $ 89,841 Budgeted Amounts
77 CITY OF GROVER BEACH
Schedule of Proportionate Share of Net Pension Liability Miscellaneous Plan
Last 10 Years
As of June 30, 2024
Fiscal Year 2014-15 2015-16 2016-17 2017-18
Measurement Period 2013-14 2014-15 2015-16 2016-17
Proportion of the net pension liability 0.059220% 0.177090% 0.171680% 0.172750% Proportionate share of the net pension liability $ 3,684,797 $ 4,740,779 $ 5,964,116 $ 6,810,002 Covered payroll $ 2,201,206 $ 2,352,410 $ 2,544,097 $ 2,823,759 Proportionate share of the net pension
liability as a percentage of covered payroll 167.40% 201.53% 234.43% 241.17% Plan fiduciary net position as a percentage
of the total pension liability 81.15% 79.89% 75.87% 75.39% Notes to schedule
Changes in assumptions:
1. In 2022, the discount rate was changed from 7.15% to 6.90%.
2. In 2018, demographic assumptions and the inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
3. In 2017, as part of the Asset Liability Management review cycle, the discount rate was changed from 7.65% to 7.15%.
4. In 2016, the discount rate was changed from 7.5% (net of administrative expense) to 7.65% to correct for an adjustment to exclude administrative expense
5. In 2015, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of general employees
78 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
0.175950% 0.177750% 0.180240% 0.240370% 0.188350% 0.187460% $ 6,631,010 $ 7,117,875 $ 7,602,638 $ 4,564,134 $ 8,813,149 $ 9,373,931 $ 3,007,940 $ 3,077,837 $ 3,138,281 $ 3,164,383 $ 3,327,458 $ 3,618,689 220.45% 231.26% 242.25% 144.23% 264.86% 259.04%
77.69% 77.73% 77.71% 90.49% 78.19% 78.19%
79 CITY OF GROVER BEACH
Schedule of Proportionate Share of Net Pension Liability Safety Plan
Last 10 Years
As of June 30, 2024
Fiscal Year 2014-15 2015-16 2016-17 2017-18
Measurement Period 2013-14 2014-15 2015-16 2016-17
Proportion of the net pension liability 0.058560% 0.089290% 0.089350% 0.088890% Proportionate share of the net pension liability $ 3,643,925 $ 3,611,809 $ 4,627,579 $ 5,311,534 Covered payroll $ 1,308,085 $ 1,193,228 $ 1,400,666 $ 1,606,728 Proportionate share of the net pension
liability as a percentage of covered payroll 278.57% 302.69% 330.38% 330.58% Plan fiduciary net position as a percentage
of the total pension liability 78.83% 77.27% 72.69% 71.74% Notes to schedule
Changes in assumptions:
1. In 2022, the discount rate was changed from 7.15% to 6.90%.
2. In 2018, demographic assumptions and the inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
3. In 2017, as part of the Asset Liability Management review cycle, the discount rate was changed from 7.65% to 7.15%.
4. In 2016, the discount rate was changed from 7.5% (net of administrative expense) to 7.65% to correct for an adjustment to exclude administrative expense
5. In 2015, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of general employees
80 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
0.090830% 0.092060% 0.094170% 0.085870% 0.098620% 0.099710% $ 5,329,358 $ 5,746,863 $ 6,274,015 $ 3,013,525 $ 6,776,709 $ 7,453,271 $ 1,611,098 $ 1,724,360 $ 1,820,004 $ 2,210,811 $ 2,129,749 $ 2,303,148 330.79% 333.28% 344.73% 136.31% 318.19% 323.61%
73.39% 73.37% 73.12% 86.61% 75.53% 75.53%
81 CITY OF GROVER BEACH
SCHEDULE OF CONTRIBUTIONS
Miscellaneous Plan
Last 10 Years
As of June 30, 2024
Fiscal Year 2015 2016 2017 2018 2019
Contractually required contribution (actuarially determined) 387,424 $ 502,704 $ 564,258 $ 640,602 $ 739,558 $ Contribution in relation to the actuarially determined
contributions 387,424 502,704 564,258 640,602 739,558
Contribution deficiency (excess) $ - -$ -$ -$ -$
Covered payroll $ 2,241,150 $ 2,201,206 $ 2,352,410 $ 2,544,097 $ 2,823,759 Contributions as a percentage of covered payroll 17.29% 22.84% 23.99% 25.18% 26.19% Notes to Schedule
Valuation Date 6/30/2021
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing.
Remaining Amortization Periods Differs by employer rate plan but not more than 28 years Asset Valuation Method Market value of asset
Inflation 2.50%
Salary Increases Varies by category, entry age and service Discount Rate ** 6.80% (net of investment and administrative expenses) Mortality Derived using CalPERS Membership Date for all Funds. The post-retirement mortality rates include 15 years of projected on-going improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.
** From the CalPERS reports (Appendix A):
https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-miscellaneous-2020.pdf https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-safety-2020.pdf 82 2020 2021 2022 2023 2024
$ 831,877 $ 827,979 $ 921,270 $ 1,008,890 $ 1,001,485
831,877 827,979 921,270 1,008,890 1,001,485
$ - -$ -$ -$ -$
$ 3,007,940 $ 3,077,837 $ 3,138,281 $ 3,164,383 $ 3,327,458
27.66% 26.90% 29.36% 31.88% 30.10%
83 CITY OF GROVER BEACH
SCHEDULE OF CONTRIBUTIONS
Safety Plan
Last 10 Years
As of June 30, 2024
Fiscal Year 2015 2016 2017 2018 2019
Contractually required contribution (actuarially determined) 329,602 $ 426,742 $ 477,038 $ 568,347 $ 569,000 $ Contribution in relation to the actuarially determined
contributions 329,602 426,742 477,038 568,347 569,000
Contribution deficiency (excess) $ - -$ -$ -$ -$
Covered payroll $ 1,242,711 $ 1,308,085 $ 1,193,228 $ 1,400,666 $ 1,606,728 Contributions as a percentage of covered payroll 27% 33% 40% 41% 35% Notes to Schedule
Valuation Date 6/30/2021
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing.
Remaining Amortization Periods Differs by employer rate plan but not more than 28 years Asset Valuation Method Market value of asset
Inflation 2.50%
Salary Increases Varies by category, entry age and service Discount Rate ** 6.80% (net of investment and administrative expenses) Mortality Derived using CalPERS Membership Date for all Funds. The post-retirement mortality rates include 15 years of projected on-going improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.
** From the CalPERS reports (Appendix A):
https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-miscellaneous-2020.pdf https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-safety-2020.pdf 84 2020 2021 2022 2023 2024
$ 676,869 $ 808,253 $ 858,085 $ 898,454 $ 935,855
676,869 1,308,253 858,085 898,454 935,855
$ - $ (500,000) -$ -$ -$
$ 1,611,098 $ 1,724,360 $ 1,820,004 $ 2,210,811 $ 2,129,749 42% 76% 47% 41% 44%
85 NONMAJOR GOVERNMENTAL FUNDS
8
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for revenues that are restricted by law or administrative actions to expenditures for specified purposes. Nonmajor special revenue funds used by the City are listed below:
Gas Tax - These 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 Sections 2103-2108.
Gas Tax Road Maintenance and Rehabilitation Account - These funds are used to account for the receipt and expenditure of Senate Bill 1, an additional gas tax, that enable cities and counties to address significant maintenance, rehabilitation and safety needs on the local streets and road system.
Public Safety Grants – The purpose of this 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 funds from the Citizens Option for Public Safety Program (COPs). Under the standard grant program allocation, the City is eligible to receive a minimum amount of $100,000 annually, with additional proportionate share based on population estimates determined by the California Department of Finance.
Parks Construction – This fund receives Park-In-Lieu fees from developers and is restricted to the acquisition, construction, major improvements, and rehabilitation.
Transportation Impact Fees – This fund accounts for fees generated by development for the construction of transportation improvements.
Law Enforcement Impact Fees – This fund accounts for fees generated by development. These funds may be used for law enforcement improvements related to expansion.
Administrative Impact Fees – This fund accounts for fees generated by development. These funds may be used for administrative improvements related to expansion.
Fire Development Impact Fees – This fund accounts for fees generated by development. These funds may be used for fire improvements related to expansion.
Storm Water Impact Fees – This fund accounts for fees generated by development. These funds may be used for storm water related expansion.
Wastewater Impact Fees – This fund accounts for fees generated by development. These funds may be used for wastewater related expansion.
Parks Facilities Impact Fees – This fund accounts for fees generated by development. These funds may be used for parks facilities related expansion.
Recreation Facilities Impact Fees – This fund accounts for fees generated by development. These funds may be used for recreation related expansion.
8
Water Development Impact Fees – This fund accounts for fees generated by development. These funds may be used for water related expansion.
State Mandated ADA Fund – This 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 the fees to the State on a quarterly basis for deposit in the Disability Access and Education Revolving Fund. Cities keep seventy percent of the fees to be used for ADA Certified Specialists Program.
Subsidized Senior Transportation – This fund accounts for expenditures related to the Senior Transportation program funded by Local Transportation Funds.
Local Transportation – This 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.
Community Development Block Grant (CDBG) Non-Entitlement – CDBG 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.
CAPITAL PROJECTS FUND
Capital projects funds are restricted, committed or assigned for capital outlay and include:
Underground Utilities – This fund accounts for underground utility developer fees restricted to the placement of utility lines underground in accordance with City Council priorities set by resolution.
Capital Projects – This fund was set up to account for capital projects in a central fund where the funding is transferred in from the funding source and the capital expenditures are appropriated and tracked by project.
CITY OF GROVER BEACH
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
June 30, 2024
Gas Tax Gas Tax RMRA
Public Safety
Grants
Park
Construction
Transportation
Impact Fees
ASSETS
Cash and investments $ 89,259 $ 316,503 $ 155,051 $ 175,289 $ 188,212 Accounts receivable 31,245 26,551
Loans receivable
Interest receivable 812 4,896 1,935 814 1,653
Total assets $ 121,316 $ 347,950 $ 156,986 $ 176,103 $ 189,865
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities:
Accounts payable $ 1,356 $ - $ 8,801 $ - $ 442
Accrued wages -
Due to funds
Total liabilities 1,356 - 8,801 - 442
Deferred Inflows of Resources:
Unavailable revenue
Total deferred inflows of resources
Fund Balances:
Restricted 119,960 347,950 148,185 176,103 189,423
Unassigned
Total fund balances 119,960 347,950 148,185 176,103 189,423 Total liabilities, deferred inflows of resources, and
fund balances $ 121,316 $ 347,950 $ 156,986 $ 176,103 $ 189,865 Special Revenue Funds
8ϴ
Law
Enforcement
Impact Fees
Administrative
Impact Fees
Fire Development
Impact Fees
Storm Water
Impact Fees
Wastewater
Impact Fees
Parks
Facilities
Impact Fees
Recreation
Facilities Impact
Fees
$ 19,335 $ 30,434 $ 10,358 $ 162,549 $ 298,329 $ 95,666 $ 58,396 176 273 165 1,434 2,622 1,576 504
$ 19,511 $ 30,707 $ 10,523 $ 163,983 $ 300,951 $ 97,242 $ 58,900 $ - $ 442 $ 442 $ 442 $ 442 $ 442 $ 442
- 442 442 442 442 442 442
19,511 30,265 10,081 163,541 300,509 96,800 58,458
19,511 30,265 10,081 163,541 300,509 96,800 58,458
$ 19,511 $ 30,707 $ 10,523 $ 163,983 $ 300,951 $ 97,242 $ 58,900 8ϵ
CITY OF GROVER BEACH
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
June 30, 2024
Water
Development
Impact Fees
State Mandated
ADA
Subsidized
Senior
Transportation
Local
Transportation
CDBG Non
Entitlement
ASSETS
Cash and investments $ 36,866 $ 9,682 $ 23,489 $ 2,037,564 $ (415,270) Accounts receivable 450,935
Loans receivable
Interest receivable 468 207 17,264
Total assets $ 37,334 $ 9,682 $ 23,696 $ 2,054,828 $ 35,665
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities:
Accounts payable $ 442 $ 63 $ - $ - $ 1,786
Accrued wages 486
Due to funds
Total liabilities 442 63 2,272
Deferred Inflows of Resources:
Unavailable revenue
Total deferred inflows of resources
Fund Balances:
Restricted 36,892 9,619 23,696 2,054,828 33,393
Unassigned
Total fund balances 36,892 9,619 23,696 2,054,828 33,393 Total liabilities, deferred inflows of resources, and
fund balances $ 37,334 $ 9,682 $ 23,696 $ 2,054,828 $ 35,665 Special Revenue Funds
ϵϬ
Home Grant
Fund
Underground
Utilities
Capital
Projects Total
$ 122,500 $ 237,877 $ 26,524 $ 3,678,613
508,731
333,975 333,975
2,088 36,887
$ 456,475 $ 239,965 $ 26,524 $ 4,558,206
$ - $ - $ 125,824 $ 141,366
486
-
125,824 141,852
333,975 333,975
333,975 333,975
122,500 239,965 4,181,679
(99,300) (99,300)
122,500 239,965 (99,300) 4,082,379
$ 456,475 $ 239,965 $ 26,524 $ 4,558,206
Capital Projects Funds
ϵϭ
CITY OF GROVER BEACH
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2024
Gas Tax Gas Tax RMRA
Public Safety
Grants
Park
Construction
Transportation
Impact Fees
Revenues:
Intergovernmental $ 364,640 $ 298,342 $ 186,159 $ - $ - Charges for services - - - 123,795 72,898
Use of money and property 2,719 15,100 10,520 2,573 5,419 Total revenues 367,359 313,442 196,679 126,368 78,317
Expenditures:
General government
Public safety - - 240,736 - -
Community development - - - - -
Public works 361,375 - - - 4,179
Capital outlay - - 134,944 - -
Total expenditures 361,375 - 375,680 - 4,179
Excess of revenues over (under) expenditures 5,984 313,442 (179,001) 126,368 74,138 Other Financing Sources (Uses):
Transfers in - - - - -
Transfers out (3,000) (299,000) - - -
Total other financing sources (uses) (3,000) (299,000) - - - Net change in fund balances 2,984 14,442 (179,001) 126,368 74,138 Fund balances - July 1 116,976 333,508 327,186 49,735 115,285 Fund balances - June 30 $ 119,960 $ 347,950 $ 148,185 $ 176,103 $ 189,423 Special Revenue Funds
ϵϮ
Law
Enforcement
Impact Fees
Administrative
Impact Fees
Fire
Development
Impact Fees
Storm Water
Impact Fees
Wastewater
Impact Fees
Parks Facilities
Impact Fees
Recreation
Facilities
Impact Fees
$ - $ - $ - $ - $ - $ - $ -
7,889 5,018 7,443 13,906 67,662 108,003 10,665
567 990 585 5,112 9,076 6,798 1,819
8,456 6,008 8,028 19,018 76,738 114,801 12,484
3,550 3,550
2,479 3,550 - - - -
- - - - - - -
- 3,550 - 3,550 3,550 - -
- - - - - - -
2,479 3,550 3,550 3,550 3,550 3,550 3,550
5,977 2,458 4,478 15,468 73,188 111,251 8,934
- - - - - - -
- - (8,000) - (5,596) (231,170)
- - (8,000) - (5,596) (231,170) -
5,977 2,458 (3,522) 15,468 67,592 (119,919) 8,934
13,534 27,807 13,603 148,073 232,917 216,719 49,524
$ 19,511 $ 30,265 $ 10,081 $ 163,541 $ 300,509 $ 96,800 $ 58,458 ϵϯ
CITY OF GROVER BEACH
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2024
Water
Development
Impact Fees
State
Mandated
ADA
Subsidized
Senior
Transportation
Local
Transportation
CDBG Non
Entitlement
Revenues:
Intergovernmental $ - $ - $ - $ 292,085 $ 597,626
Charges for services 65,451 5,591
Use of money and property 1,102 754 61,168
Total revenues 66,553 5,591 754 353,253 597,626
Expenditures:
General government
Public safety
Community development 592,261
Public works 3,550 88,533
Capital outlay
Total expenditures 3,550 - - 88,533 592,261
Excess of revenues over (under) expenditures 63,003 5,591 754 264,720 5,365 Other Financing Sources (Uses):
Transfers in
Transfers out (25,000) (6,000)
Total other financing sources (uses) (25,000) (6,000) - - Net change in fund balances 38,003 (409) 754 264,720 5,365 Fund balances - July 1 (1,111) 10,028 22,942 1,790,108 28,028 Fund balances - June 30 $ 36,892 $ 9,619 $ 23,696 $ 2,054,828 $ 33,393 Special Revenue Funds
ϵϰ
Home Grant
Fund
Underground
Utilities
Capital
Projects Totals
$ - $ - $ - 1,738,852
488,321
7,633 131,935
- 7,633 - 2,359,108
7,100
246,765
592,261
468,287
1,233,037 1,367,981
- - 1,233,037 2,682,394
- 7,633 (1,233,037) (323,286)
1,133,737 1,133,737
(577,766)
1,133,737 555,971
- 7,633 (99,300) 232,685
122,500 232,332 - 3,849,694
$ 122,500 $ 239,965 $ (99,300) $ 4,082,379
Capital Project Funds
ϵϱ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
GAS TAX
For the Fiscal Year Ended June 30, 2024
Final Budget Actual
Variance
Over/(Under)
Revenues:
Intergovernmental $ 376,774 $ 364,640 $ (12,134)
Use of money and property 3,000 2,719 (281)
Total revenues 379,774 367,359 (12,415)
Expenditures:
Public works 285,000 361,375 (76,375)
Total expenditures 285,000 361,375 (76,375)
Excess of revenues over (under) expenditures 94,774 5,984 (88,790) Other Financing Sources (Uses):
Long-term debt issued -
Transfers in -
Transfers out (78,000) (3,000) 75,000
Total other financing sources (uses) (78,000) (3,000) 75,000 Net change in fund balance $ 16,774 2,984 $ (13,790)
Fund balance - July 1 116,976
Fund balance - June 30 $ 119,960
96 CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
GAS TAX RMRA
For the Fiscal Year Ended June 30, 2024
Final Budget Actual
Variance
Over/(Under)
Revenues:
Intergovernmental $ 300,000 $ 298,342 $ (1,658)
Use of money and property 2,500 15,100 12,600
Total revenues 302,500 313,442 10,942
Other Financing Sources (Uses):
Transfers out (299,000) (299,000)
Total other financing sources (uses) (299,000) (299,000) Net change in fund balance $ 3,500 14,442 $ 10,942
Fund balance - July 1 333,508
Fund balance - June 30 $ 347,950
ϵϳ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
PUBLIC SAFETY GRANTS
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Intergovernmental $ 180,000 $ 186,159 $ 6,159
Use of money and property 5,000 10,520 5,520
Total revenues 185,000 196,679 11,679
Expenditures:
Public safety 149,000 240,736 (91,736)
Capital outlay 15,000 134,944 (119,944)
Total expenditures 164,000 375,680 (211,680)
Net change in fund balance $ 21,000 (179,001) $ (200,001) Fund balance - July 1 327,186
Fund balance - June 30 $ 148,185
ϵϴ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
PARK CONSTRUCTION
For the Fiscal Year Ended June 30, 2024
Final Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 11,000 $ 123,795 $ 112,795
Use of money and property 800 2,573 1,773
Total revenues 11,800 126,368 114,568
Net change in fund balance $ 11,800 126,368 $ 114,568
Fund balance - July 1 49,735
Fund balance - June 30 $ 176,103
99 CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
TRANSPORTATION IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 16,000 $ 72,898 $ 56,898
Use of money and property 500 5,419 4,919
Total revenues 16,500 78,317 61,817
Expenditures:
Public works - 4,179 (4,179)
Total expenditures - 4,179 (4,179)
Excess of revenues over (under) expenditures 16,500 74,138 57,638 Net change in fund balance $ 16,500 74,138 $ 57,638
Fund balance - July 1 115,285
Fund balance - June 30 $ 189,423
ϭϬϬ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
LAW ENFORCEMENT IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 1,200 $ 7,889 $ 6,689
Use of money and property 200 567 367
Total revenues 1,400 8,456 7,056
Expenditures:
Public safety - 2,479 (2,479)
Total expenditures - 2,479 (2,479)
Net change in fund balance $ 1,400 5,977 $ 4,577
Fund balance - July 1 13,534
Fund balance - June 30 $ 19,511
ϭϬϭ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
ADMINISTRATIVE IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 1,500 $ 5,018 $ 3,518
Use of money and property 400 990 590
Total revenues 1,900 6,008 4,108
Expenditures:
General government - 3,550 (3,550)
Total expenditures - 3,550 (3,550)
Net change in fund balance $ 1,900 2,458 $ 558
Fund balance - July 1 27,807
Fund balance - June 30 $ 30,265
ϭϬϮ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
FIRE DEVELOPMENT IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 1,900 $ 7,443 $ 5,543
Use of money and property 200 585 385
Total revenues 2,100 8,028 5,928
Expenditures:
Public safety - 3,550 (3,550)
Total expenditures - 3,550 (3,550)
Excess of revenues over (under) expenditures 2,100 4,478 2,378 Other Financing Sources (Uses):
Transfers out (8,000) (8,000) -
Total other financing sources (uses) (8,000) (8,000) -
Net change in fund balance $ (5,900) (3,522) $ 2,378
Fund balance - July 1 13,603
Fund balance - June 30 $ 10,081
103
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
STORM WATER IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 7,000 $ 13,906 $ 6,906
Use of money and property 2,100 5,112 3,012
Total revenues 9,100 19,018 9,918
Expenditures:
Public works - 3,550 (3,550)
Total expenditures - 3,550 (3,550)
Net change in fund balance $ 9,100 15,468 $ 6,368
Fund balance - July 1 148,073
Fund balance - June 30 $ 163,541
ϭϬϰ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
WASTEWATER IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 22,000 $ 67,662 $ 45,662
Use of money and property 4,200 9,076 4,876
Total revenues 26,200 76,738 50,538
Expenditures:
Public works - 3,550 (3,550)
Total expenditures - 3,550 (3,550)
Excess of revenues over (under) expenditures 26,200 73,188 46,988 Other Financing Sources (Uses):
Transfers out (85,000) (5,596) 79,404
Total other financing sources (uses) (85,000) (5,596) 79,404 Net change in fund balance $ (58,800) 67,59Ϯ $ 126,391
Fund balance - July 1 232,917
Fund balance - June 30 $ 300,509
ϭϬϱ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
PARKS FACILITIES IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 27,000 $ 108,003 $ 81,003
Use of money and property 5,500 6,798 1,298
Total revenues 32,500 114,801 82,301
Expenditures:
General government 3,550 (3,550)
Total expenditures - 3,550 (3,550)
Excess of revenues over (under) expenditures 32,500 111,25ϭ 78,750 Other Financing Sources (Uses):
Transfers out - (231,170) (231,170)
Total other financing sources (uses) - (231,170) (231,170) Net change in fund balance $ 32,500 (119,919) $ (152,419) Fund balance - July 1 216,719
Fund balance - June 30 $ 96,800
106
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
RECREATION FACILITIES IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 5,000 $ 10,665 $ 5,665
Use of money and property 1,600 1,819 219
Total revenues 6,600 12,484 5,884
Expenditures:
General government - 3,550 (3,550)
Total expenditures - 3,550 (3,550)
Excess of revenues over (under) expenditures 6,600 8,934 2,334 Other Financing Sources (Uses):
Transfers out -
Total other financing sources (uses) - - -
Net change in fund balance $ 6,600 8,934 $ 2,334
Fund balance - July 1 49,524
Fund balance - June 30 $ 58,458
107
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
WATER DEVELOPMENT IMPACT FEES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 25,000 $ 65,451 $ 40,451
Use of money and property - 1,102 1,102
Total revenues 25,000 66,553 41,553
Expenditures:
Public works - 3,550 (3,550)
Total expenditures - 3,550 (3,550)
Excess of revenues over (under) expenditures 25,000 63,003 38,003 Other Financing Sources (Uses):
Transfers out (25,000) (25,000) -
Total other financing sources (uses) (25,000) (25,000) - Net change in fund balance $ - 38,003 $ 38,003
Fund balance - July 1 (1,111)
Fund balance - June 30 $ 36,892
ϭϬϴ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
STATE MANDATED ADA
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Charges for services $ 6,000 $ 5,591 $ (409)
Total revenues 6,000 5,591 (409)
Other Financing Sources (Uses):
Transfers out (6,000) (6,000)
Total other financing sources (uses) (6,000) (6,000)
Net change in fund balance $ - (409) $ (409)
Fund balance - July 1 10,028
Fund balance - June 30 $ 9,619
ϭϬϵ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
SUBSIDIZED SENIOR TRANSPORTATION
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Use of money and property 300 754 454
Total revenues 300 754 454
Net change in fund balance $ 300 754 $ 454
Fund balance - July 1 22,942
Fund balance - June 30 $ 23,69ϲ
110
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
LOCAL TRANSPORTATION FUND
For the Fiscal Year Ended June 30, 2024
Final Budget Actual
Variance
Over/(Under)
Revenues:
Intergovernmental $ 443,500 $ 292,085 $ (151,415)
Use of money and property 22,000 61,168 39,168
Total revenues 465,500 353,253 (112,247)
Expenditures:
General government 4,500 - (4,500)
Public works 80,000 88,533 (8,533)
Parks and recreation -
Total expenditures 84,500 88,533 (13,033)
Excess of revenues over (under) expenditures 381,000 264,720 (116,280) Other Financing Sources (Uses):
Transfers out 150,000 - (150,000)
Total other financing sources (uses) 150,000 - (150,000) Net change in fund balance $ 531,000 264,720 $ (266,280) Fund balance - July 1 1,790,108
Fund balance - June 30 $ 2,054,828
111
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
CDBG NON-ENTITLEMENT
For the Fiscal Year Ended June 30, 2024
Final Budget Actual
Variance
Over/(Under)
Revenues:
Intergovernmental $ - $ 597,626 $ 597,626
Total revenues - 597,626 597,626
Expenditures:
Community development 592,261 (592,261)
Total expenditures 592,261 (592,261)
Excess of revenues over (under) expenditures - 5,365 5,365 Net change in fund balance $ - 5,365 $ 5,365
Fund balance - July 1 28,028
Fund balance - June 30 $ 33,394
112
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
HOME GRANT FUND
For the Fiscal Year Ended June 30, 2024
Final Budget Actual
Variance
Over/(Under)
Revenues:
Other $ - $ - $ -
Total revenues - - -
Net change in fund balance $ - - $ -
Fund balance - July 1 122,500
Fund balance - June 30 $ 122,500
ϭϭϯ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
UNDERGROUND UTILITIES
For the Fiscal Year Ended June 30, 2024
Final
Budget Actual
Variance
Over/(Under)
Revenues:
Use of money and property $ 4,000 $ 7,633 $ 3,633
Total revenues 4,000 7,633 3,633
Net change in fund balance $ 4,000 7,633 $ 3,633
Fund balance - July 1 232,332
Fund balance - June 30 $ 239,965
ϭϭϰ
CITY OF GROVER BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL
CAPITAL PROJECTS
For the Fiscal Year Ended June 30, 2024
Final Budget Actual
Variance
Over/(Under)
Revenues:
Intergovernmental $ 1,500,000 $ - $ (1,500,000)
Total revenues 1,500,000 - (1,500,000)
Expenditures:
Capital outlay 3,515,000 1,233,037 2,281,963
Total expenditures 3,515,000 1,233,037 2,281,963
Excess of revenues over (under) expenditures (2,015,000) (1,233,037) 781,963 Other Financing Sources (Uses):
Transfers in 2,015,000 1,133,737 (881,263)
Total other financing sources (uses) 2,015,000 1,133,737 (881,263) Net change in fund balance $ - (99,300) $ (99,300)
Fund balance - July 1
Fund balance - June 30 $ (99,300)
ϭϭϱ
CITY OF GROVER BEACH
PRIVATE PURPOSE TRUST FUNDS
For the Fiscal Year Ended June 30, 2024
Housing
Successor Agency
RDA Successor
Agency Total
Additions:
Taxes $ 291,000 - $ 291,000 $
Interest 17,045 17,045
Other -
Total additions - 308,045 308,045
Deductions:
Community development 6,755 6,755
Interest expense 130,000 130,000
Total deductions - 136,755 136,755
Change in net position 171,290 - 171,290
Total net position-beginning 403,913 (2,697,195) (2,293,282) Total net position-ending $ (2,525,905) 403,913 $ (2,121,992) $
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ϭϭϲ
CITY OF GROVER BEACH
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PRIVATE PURPOSE TRUST FUNDS
June 30, 2024
Housing
Successor
Agency
RDA Successor
Agency Total
ASSETS
Cash and investments $ 23,913 $ - $ 23,913
Cash and investments with fiscal agent 313,931 313,931
Land held for projects 380,000 380,000
Total assets 403,913 313,931 717,844
LIABILITIES
Accounts payable
Accrued interest payable 55,729 55,729
Unearned revenue 228,625 228,625
Noncurrent liabilites
Due within one year 160,000 160,000
Due in more than one year 2,394,869 2,394,869
Total Liabilities 2,839,223 2,839,223
NET POSITION
Restricted for:
Individuals, organizations, and other governments $ 403,913 $ (2,525,292) $ (2,121,379) ϭϭϳ
CITY OF GROVER BEACH
CUSTODIAL FUNDS
June 30, 2024
Tourism
Marketing
District Tax
Fund
Building and
Planning
Fund Deposit Fund Total
ASSETS
Cash and investments $ 14,585 $ 190,010 $ 269,053 $ 473,648 Accounts Receivable - Other $ -
Total assets 14,585 190,010 269,053 473,648
LIABILITIES
Accounts payable and other liabilities 107,981 107,981
Due to other governments 14,585 190,010 163,684 368,279 Total Liabilities 14,585 190,010 271,665 476,260
NET POSITION
Restricted for:
Individuals, organizations, and other
governments $ - $ - $ (2,611) $ (2,611)
COMBINING STATEMENT OF FIDUCIARY NET POSITION
ϭϭϴ
CITY OF GROVER BEACH
CUSTODIAL FUNDS
For the Fiscal Year Ended June 30, 2024
Tourism
Marketing
District Tax
Fund
Building and
Planning
Fund Deposit Fund Total
Additions:
Taxes for other governments $ 74,903 $ - $ - $ 74,903
Security deposits 238,647 238,647
Building and planning deposits 351,221 351,221
Other -
Total additions 351,221 74,903 238,647 664,771
Deductions:
Building and planning expense 268,398 268,398
Payments to other governments 70,639 70,639
Refunds 223,146 223,146
Other expense 7,140 7,140
Total deductions 268,398 70,639 230,286 569,323
Change in net position 4,264 82,823 8,361 95,448
Total net position-beginning 1,089 32,325 42,605 76,019 Total net position-ending $ 115,148 5,353 $ 50,966 $ 171,467 $
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION ϭϭϵ
CITY OF GROVER BEACH
SCHEDULE OF DEBT SERVICE COVERAGE
For the Fiscal Year Ended June 30, 2024
2024
Service charges $ 3,916,646
Other operating revenue 275,082
Total service charges 4,191,728
Investment income 133,226
Total miscellaneous revenue 133,226
Total Revenue $ 4,324,954
Personnel costs 860,331
Supplies (1) 1,214,593
Lopez Contract O&M (2) 897,815
Lopez Dam Bonds - 2011A Debt Service (2) (3) 83,500
Lopez SRF Loan Debt Service (2) 295,254
Lopez Capital Outlay (2) 79,470
Other Charges (1), (4) 254,623
3,685,586
25% Coverage Factor of Lopez 2011A Bonds (5) 20,875
Total Operations and Maintenance 3,706,461
Net Revenue Available for Debt Service $ 618,493
Debt service:
2020 Water Bond 280,822
Total debt service 280,822
Net Revenue after Debt Service
Calculated coverage 2.202438
Meets covenant restrictions yes
Notes:
(1) Supplies and services less (2) and (3)
(2) Includes actual cost from San Luis Obispo County
(3) Includes debt service allocated to the City, net of County received property taxes (4) Includes non-capital equipment, but excludes depreciation expense (5) For Lopez 2011A bonds, pledge of gross revenue requires coverage factor of 25% of Lopez 2011A bond debt service
120
STATISTICAL
SECTION
1
STATISTICAL SECTION
This section of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.
Financial Trends Information
These schedules contain trend information to help the reader understand how the City’s financial performances and wellͲbeing have changed over time.
Revenue Capacity Information
These schedules contain trend information to help the reader understand the City’s most significant local revenue source, property taxes.
Debt Capacity Information
These schedules contain trend information to help the reader assess the affordability of the City’s current level of outstanding debt and the City’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
CITY OF GROVER BEACH
NET POSITION BY COMPONENT
Last Ten Fiscal Years
2015 2016 2017 2018
Governmental Activities
Net investment in capital assets $ 15,969,238 $ 12,890,591 $ 10,357,447 $ 3,309,344 Restricted 2,346,071 14,200,615 11,338,614 4,335,595
Unrestricted (5,072,493) (14,013,120) (11,773,429) (6,661,847) Total governmental activities net position 13,242,816 13,078,086 9,922,632 983,092 Business-type Activities
Net investment in capital assets $ 5,214,650 $ 5,703,245 $ 5,601,488 $ 5,425,644 Restricted
Unrestricted 6,400,614 5,734,800 5,486,860 5,068,837
Total business-type activities net position $ 11,615,264 $ 11,438,045 $ 11,088,348 $ 10,494,481 Primary Government
Net investment in capital assets $ 21,183,888 $ 18,593,836 $ 15,958,935 $ 8,734,988 Restricted 2,346,071 14,200,615 11,338,614 4,335,595
Unrestricted 1,328,121 (8,278,320) (6,286,569) (1,593,010) Total primary government net position $ 24,858,080 $ 24,516,131 $ 21,010,980 $ 11,477,573 122
2019 2020 2021 2022 2023 2024
$ 17,844,806 $ 19,087,485 $ 19,441,210 $ (7,176,380) (9,088,718) $ (9,990,567) 16,443,580 12,464,114 9,082,474 6,224,776 6,644,643 7,147,637 (35,569,175) (34,991,224) (33,038,276) (3,999,262) (1,839,706) (1,516,093) (1,280,789) (3,439,625) (4,514,592) (4,950,866) (4,283,781) (4,359,023) $ 5,312,360 $ 1,899,045 $ 6,673,989 $ 8,082,305 $ 7,817,262 $ 6,024,334 5,716,976 11,058,092 7,521,866 8,124,079 6,500,613 7,659,720 $ 11,029,336 $ 12,957,137 $ 14,195,855 $ 16,206,384 $ 14,317,875 $ 13,684,054 $ 23,157,166 $ 20,986,530 $ 26,115,199 $ 905,925 $ (1,271,456) $ (3,966,233) 16,443,580 12,464,114 9,082,474 6,224,776 6,644,643 7,147,637 (29,852,199) (23,933,132) (25,516,410) 4,124,817 4,660,907 6,143,627 $ 9,748,547 $ 9,517,512 $ 9,681,263 $ 11,255,518 $ 10,034,094 $ 9,325,031 Fiscal Year
123
2015 2016 2017
General government $ 1,516,480 $ 1,884,959 $ 2,086,579
Public safety 4,775,994 3,738,665 5,535,688
Community development 487,336 806,727 1,195,283
Public works 1,547,554 5,194,271 7,433,919
Parks and recreation 701,247 717,105 475,754
Total governmental activities 9,028,611 12,341,727 16,727,223 Water 2,595,771 3,814,432 2,724,944
Water conservation 159,739 126,950 92,307
Wastewater 1,684,728 1,591,627 2,594,299
Total business-type activities: 4,440,238 5,533,009 5,411,550 Total primary government expenses $ 13,468,849 $ 17,874,736 $ 22,138,773 General government $ 214,898 $ 523,119 $ 380,195
Public safety 139,906 127,024 131,546
Community development 443,144
Public works 209,789 698,187 588,912
Parks and recreation 346,798 326,693 200,647
758,249 1,474,983 1,874,270
799,651 1,425,586 1,489,982
Total governmental activities program
revenues $ 2,912,435 $ 4,575,592 $ 4,665,552
Water 2,848,085 2,617,463 2,698,170
Water conservation 104,873 238,095 194,268
Wastewater 2,165,005 2,214,610 2,598,351
Total business-type activities program
revenues 5,117,963 5,070,168 5,490,789
Total primary government program
revenues $ 8,030,398 $ 9,645,760 $ 10,156,341
Net revenue (expense)
Governmental activities $ 9,429,292 $ 12,151,631 $ 15,644,290
CITY OF GROVER BEACH
CHANGES IN NET POSITION
Last Ten Fiscal Years
Charges for services:
Capital contributions and grants:
EXPENSES
Governmental Activities
Business-type Activities:
PROGRAM REVENUES
Governmental Activities
Charges for services:
Operating contributions and grants
Business-type Activities:
Capital contributions and grants
124
2018 2019 2020 2021 2022 2023 2024
$ 2,670,331 $ 2,716,640 $ 3,275,341 $ 4,363,505 $ 4,695,218 $ 4,657,513 $ 8,286,836 6,490,947 6,171,995 7,580,648 7,385,514 7,977,222 7,826,482 7,774,094 679,727 611,340 1,064,355 698,932 976,070 851,204 6,467,427 9,986,270 7,859,731 7,994,179 5,961,342 7,821,460 7,100,166 6,835,386 482,567 537,448 517,919 373,201 606,330 603,660 -
20,309,842 17,897,154 20,432,442 18,782,494 22,076,300 21,039,025 29,363,743 3,589,286 2,857,203 2,900,305 3,181,371 3,149,314 5,389,559 4,665,962 26,131 9,658 13,278 9,265 11,291 19,282 4,771
2,763,509 1,147,410 1,142,702 1,297,102 1,348,332 1,150,078 1,326,010 6,378,926 4,014,271 4,056,285 4,487,738 4,508,937 6,558,919 5,996,743 $ 26,688,768 $ 21,911,425 $ 24,488,727 $ 23,270,232 $ 26,585,237 $ 27,597,944 $ 35,360,486 $ 416,456 $ 681,253 $ 400,435 $ 721,381 $ 798,367 $ 995,944 $ 1,173,999 153,464 213,377 224,084 46,924 58,587 59,895 62,901
149,698 86,368 149,400 187,500 197,365 185,000 158,750
774,174 574,020 639,556 218,552 241,138 355,512 500,551 259,066 245,015 261,915 57,443 194,199 203,498 -
652,324 804,496 2,919,414 1,405,720 4,045,051 1,862,592 8,845,685 205,034 1,792,844 1,737,261 639,160 1,131,438 437,101 287,585 $ 2,610,216 $ 4,397,373 $ 6,332,065 $ 3,276,680 $ 6,666,145 $ 4,099,542 $ 11,029,471 3,290,282 3,532,917 3,973,531 4,311,419 3,906,986 3,638,849 4,191,728 49,651 22,418
2,781,150 1,358,119 1,263,722 1,272,571 1,306,389 1,327,978 1,603,890 6,121,083 4,913,454 5,237,253 5,583,990 5,213,375 4,966,827 5,795,618 $ 8,731,299 $ 9,310,827 $ 11,569,318 $ 8,860,670 $ 11,879,520 $ 9,066,369 $ 16,825,089 $ 15,286,938 $ 16,035,069 $ 14,100,377 $ 15,505,814 $ 15,410,155 $ 16,939,483 $ 18,334,272 Fiscal Year
125
2015 2016 2017
Business-type activitiesl activities 415,046 341,382 888,137 Total primary government $ 9,844,338 $ 12,493,013 $ 16,532,427 Taxes:
Secured and unsecured property taxes 3,968,869 4,478,834 4,614,075 Other taxes 2,742,187 3,135,658 3,378,521
Investment income (loss) 13,934 30,311 43,797
Other revenues 60,900 294,663 446,058
Transfers 459,713 343,935 463,766
Total governmental activities 7,245,603 8,283,401 8,946,217 Investment income (loss) 9,476 12,249 34,830
Other revenues
Transfers (459,713) (343,935) (463,766)
Total business-type activities (450,237) (331,686) (428,936) Total primary government $ 6,795,366 $ 7,951,715 $ 8,517,281 Governmental activities $ (2,183,689) $ (3,868,230) $ (6,698,073) Business-type activities (865,283) (673,068) (1,317,073) Total primary government $ (3,048,972) $ (4,541,298) $ (8,015,146)
CHANGE IN NET POSITION
GENERAL REVENUES AND OTHER CHANGES IN
NET POSITION
Governmental Activities
Business-type Activities:
126
2018 2019 2020 2021 2022 2023 2024
Fiscal Year
(2,106,812) (857,169) (1,180,968) (1,096,252) (704,438) 1,592,092 201,125 $ 13,180,126 $ 15,177,900 $ 12,919,409 $ 14,409,562 $ 14,705,717 $ 18,531,575 $ 18,535,397 5,044,595 5,970,615 6,209,369 6,509,477 6,836,295 7,552,939 8,014,612 3,382,130 4,896,931 6,191,702 7,843,083 9,143,089 9,124,697 8,667,192 74,531 192,334 171,193 (22,612) (184,073) 358,045 860,579 13,875 90,956 19,476 59,549 384,506 101,928 15,246
410,323 502,499 (650,199) 41,350 (1,205,936) 490,290 701,401 8,925,454 11,653,335 11,941,541 14,430,847 14,973,881 17,627,899 18,259,030 26,149 86,155 96,634 49,547 48,536 193,872 268,696
134,269 51,619 (8,138) 9
(410,323) (502,499) 650,199 (41,350) 1,205,936 (490,290) (701,401) (384,174) (416,344) 746,833 142,466 1,306,091 (304,556) (432,696) $ 8,541,280 $ 11,236,991 $ 12,688,374 $ 14,573,313 $ 16,279,972 $ 17,323,343 $ 17,826,334 $ (6,361,484) $ (4,381,734) $ (2,158,836) $ (1,074,967) $ (436,274) $ 688,416 $ (75,242) 1,722,638 440,825 1,927,801 1,238,718 2,010,529 (1,896,648) (633,821) $ (4,638,846) $ (3,940,909) $ (231,035) $ 163,751 $ 1,574,255 $ (1,208,232) $ (709,063) 127
CITY OF GROVER BEACH
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2015 2016 2017
GENERAL FUND
Nonspendable $ 1,612 $ 1,612 $ 1,612
Unassigned 2,928,630 3,456,896 3,053,454
Total general fund $ 2,930,242 $ 3,458,508 $ 3,055,066
ALL OTHER GOVERNMENTAL FUNDS
Restricted $ 7,322,212 $ 14,049,871 $ 10,802,117
Unassigned (40,997) (326) (107,570)
Total all other governmental funds $ 7,281,215 $ 14,049,545 $ 10,694,547 Effective June 30, 2011, the City of Grover Beach implemented GASB classifications of fund balance.
128
2018 2019 2020 2021 2022 2023 2024
$ 1,612 $ 1,612 $ 86,115 $ 2,823 $ 1,612 $ 2,760 $ 1,612 1,269,091 2,210,205 3,183,015 4,048,221 5,784,056 7,485,453 8,803,993 $ 1,270,703 $ 2,211,817 $ 3,269,130 $ 4,051,044 $ 5,785,668 $ 7,488,213 $ 8,805,605 $ 19,066,870 $ 16,339,179 $ 12,195,614 $ 9,082,474 $ 15,536,693 $ 12,361,098 $ 10,656,910 1,179,248 (378,497) (349,107) (322,696) (1,111) (282,450) $ 20,246,118 $ 15,960,682 $ 11,846,507 $ 8,759,778 $ 15,536,693 $ 12,359,987 $ 10,374,460 Fiscal Year
129
2015 2016 2017 2018
Taxes $ 6,711,056 $ 7,614,492 $ 7,992,596 $ 8,426,725
Licenses, permits, and fees 255,717 302,023 258,201 295,736 Intergovernmental 1,517,900 2,871,124 3,364,252 852,357 Charges for services 742,111 1,003,102 695,134 1,124,635 Fines and forfeitures 70,319 61,822 79,365 71,626
Use of money and property 250,021 315,926 314,460 328,910 Other 151,202 194,245 265,891 25,358
Total revenues 9,698,326 12,362,734 12,969,899 11,125,347 General government 1,385,147 1,759,005 1,951,745 2,518,969 Public safety 4,808,341 5,005,977 5,337,278 5,738,932
Community development 428,979 746,748 1,131,505 608,668 Public works 1,347,199 1,514,746 1,665,054 1,906,684
Parks and recreation 391,954 413,671 438,981 441,286
Capital outlay 895,621 4,239,849 6,043,779 7,813,816
Debt service:
Principal 22,673 22,893 133,130 360,169
Interest 2,947 193,530 450,633 589,631
Total expenditures 9,282,861 13,896,419 17,152,105 19,978,155 Excess of revenues over (under)
expenditures 415,465 (1,533,685) (4,182,206) (8,852,808) Long-term debt issued 16,209,693
Lease liability (as lease)
Transfers in 508,012 549,308 576,979 484,104
Transfers out (48,299) (205,373) (113,213) (73,781)
Bond proceeds 5,376,225 8,509,358
Extraordinary gain on dissolution of
the redevelopment agency
Total other financing sources (uses) 5,835,938 8,853,293 463,766 16,620,016 Net change in fund balances $ 6,251,403 $ 7,319,608 $ (3,718,440) $ 7,767,208 Debt service as a percentage of
non-capital expenditures 0.31% 2.29% 5.55% 8.47%
CITY OF GROVER BEACH
Last Ten Fiscal Years
REVENUES
EXPENDITURES
OTHER FINANCING SOURCES (USES)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
130
2019 2020 2021 2022 2023 2024
$ 10,867,546 $ 12,401,071 $ 14,352,559 $ 15,979,383 $ 16,677,637 $ 14,526,218 430,005 406,479 335,682 351,466 424,554 514,705
2,597,339 4,656,675 2,044,880 5,176,489 2,299,693 7,394,417 1,127,114 1,070,362 779,821 970,860 1,197,700 730,264
62,378 57,198 40,845 47,823 42,857 37,838
433,845 294,560 103,952 (45,691) 473,135 586,589
29,981 17,400 28,500 488,132 100,244 2,183
15,548,208 18,903,745 17,686,239 22,968,462 21,215,820 23,792,214 2,589,635 3,056,601 4,210,209 4,443,393 4,517,231 7,905,734 5,671,913 6,749,585 7,235,622 7,592,483 7,856,406 6,680,356 566,312 967,603 706,733 949,997 904,966 5,811,858
6,375,483 6,426,259 4,615,693 7,011,955 5,706,596 1,462,540 462,319 420,650 335,923 550,091 555,034 -
2,213,161 1,842,128 1,088,752 2,707,198 1,600,781 1,786,250 467,695 814,627 842,171 852,838 1,045,202 83,813
1,050,787 1,032,955 997,301 971,370 1,338,668 18,733
19,397,305 21,310,408 20,032,404 25,079,325 23,524,884 23,749,284 (3,849,097) (2,406,663) (2,346,165) (2,110,863) (2,309,064) 42,930 434,614
371,147 1,167,032
540,483 571,605 1,302,405 3,231,799 1,558,569 636,417
(37,984) (1,221,804) (1,261,055) (4,437,735) (1,068,279) (528,987) 11,457,191
937,113 (650,199) 41,350 10,622,402 490,290 1,274,462
$ (2,911,984) $ (3,056,862) $ (2,304,815) $ 8,511,539 $ (1,818,774) $ 1,317,392
9.69% 10.49% 10.75% 8.88% 12.20% 0.47%
Fiscal Year
131
CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal
Year Property Sales & Use Cannabis
Transient
Occupancy
Franchise
Fees Other Total
2015 3,968,869 1,720,394 314,272 509,642 197,879 $ 6,711,056 2016 4,478,834 2,044,178 363,352 523,347 204,781 $ 7,614,492 2017 4,614,075 2,221,417 368,672 542,912 245,520 $ 7,992,596 2018 5,044,595 2,188,629 16,359 371,169 529,160 276,813 $ 8,426,725 2019 5,970,615 2,657,247 953,342 433,249 555,460 297,633 $ 10,867,546 2020 6,209,369 2,819,913 1,936,729 433,460 585,035 416,565 $ 12,401,071 2021 6,509,477 3,846,966 2,424,914 580,423 600,228 390,552 $ 14,352,560 2022 6,836,295 5,649,554 1,515,590 952,228 619,416 406,301 $ 15,979,384 2023 7,591,248 5,882,949 1,198,037 924,162 713,394 406,155 $ 16,715,94ϱ 2024 8,014,612 5,733,277 1,066,489 953,685 718,907 194,834 $ 16,681,804
TAX REVENUE BY SOURCE - GENERAL FUND
-
2 4
6 8
10 12
14 16
18 2015 2016 2017 2018 2019 2020 2021 2022 2023
MILLIONS
Property Sales & Use Cannabis Transient Occupancy Franchise Fees Other -
2 4
6 8
10 12
14 16
18 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MILLIONS
Property Sales & Use Cannabis Transient Occupancy Franchise Fees Other 132
CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal Year Secured Unsecured SBE Nonunitary Net Total AV % Change 2015 1,366,395,227 34,940,002 350,890 1,401,686,119 6.30% 2016 1,428,953,619 36,070,896 340,461 1,465,364,976 4.54% 2017 1,507,554,753 40,916,971 307,339 1,548,779,063 5.69% 2018 1,589,746,399 37,312,380 311,781 1,627,370,560 5.07% 2019 1,691,583,881 39,079,692 295,068 1,730,958,641 6.37% 2020 1,774,051,571 42,307,282 295,699 1,816,654,552 4.95% 2021 1,855,486,235 45,766,485 290,500 1,901,543,220 4.67% 2022 1,934,674,078 27,407,309 285,642 1,962,367,029 3.20% 2023 2,060,810,502 27,901,941 388,172 2,089,100,615 6.46% 2024 2,173,954,240 30,492,219 381,386 2,204,827,845 5.54% Notes:
A) Secured property is generally real property, defined as land, mines, minerals, timber and improvements such as buildings, structures, crops, trees and vines.
B) Unsecured property is generally personal property including machinery, equipment, office tools and supplies.
Data Source: San Luis Obispo County Assessor FY 2013-14 to FY 2022-23 Combined Tax Rolls HDL, Coren & Cone FY 2013-14 to FY 2022-23
NET TAXABLE ASSESSED VALUE HISTORY
0 200
400
600
800
1000
1200
1400
1600
1800
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MILLIONS
Fiscal Year Secured Unsecured SBE Nonunitary
133
2015 2016 2017 2018
Residential $ 1,155,793,567 $ 1,222,920,374 $ 1,291,868,396 $ 1,367,724,526 Commercial 133,744,656 136,713,661 142,779,798 149,072,791 Industrial 44,165,492 35,828,814 36,762,963 37,867,319
Government Owned 23,258 23,722 24,082 24,562
Dry Farm
Institutional 1,810,146 1,551,535 1,539,460 1,625,318
Irrigated 1,231,983 1,256,596 1,275,757 1,451,248
Miscellaneous 2,234,368 2,606,272 2,776,708 2,819,803
Recreational 1,029,268 1,044,460 1,060,383 1,082,022
Vacant 26,362,489 27,008,185 29,467,206 28,078,810
1,366,395,227 1,428,953,619 1,507,554,753 1,589,746,399 350,890 340,461 307,339 311,781
34,940,002 36,070,896 40,916,971 37,312,380
$ 1,401,686,119 $ 1,465,364,976 $ 1,548,779,063 $ 1,627,370,560
0.18390 0.18532 0.18530 0.18547
Notes:
B) In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed.
Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%).
With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Data Source: San Luis Obispo County Assessor FY 2013-14 to FY 2022-23 Combined Tax Rolls HDL, Coren & Cone FY 2013-14 to FY 2022-23
Unsecured
Totals
Total Direct Rate
A) Exempt values are not included in Total.
SBE Nonunitary
CITY OF GROVER BEACH
ASSESSED VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Category
Secured
Unknown
Total Secured
Fiscal Year
134
2019 2020 2021 2022 2023 2024
$ 1,445,030,947 $ 1,500,964,842 $ 1,568,642,884 $ 1,655,549,609 $ 1,772,551,906 $ 1,869,805,540 147,306,313 149,800,008 158,850,295 163,479,302 169,592,187 175,845,907 69,391,476 68,420,094 71,395,036 74,970,268 79,062,188 82,958,635 25,053 26,332 26,857 27,393
2,330,851 2,377,466
1,805,612 2,235,079 1,648,802 1,665,882 1,699,198 1,733,180 1,480,272 1,509,876 1,540,073 1,556,026 1,587,145 1,618,887 3,235,053 4,067,641 4,135,414 3,413,905 3,471,921 3,541,349 1,103,657 1,119,771 1,142,162 903,223 921,285 939,705
22,205,498 41,105,924 43,482,466 33,109,531 31,897,815 37,483,644 2,497,485 2,271,637
1,691,583,881 1,774,051,571 1,855,486,235 1,934,674,078 2,060,810,502 2,173,954,240 295,068 295,699 290,500 285,642 388,172 381,386
39,079,692 42,307,282 45,766,485 27,407,309 27,901,941 30,492,419 $ 1,730,958,641 $ 1,816,654,552 $ 1,901,543,220 $ 1,962,367,029 $ 2,089,100,615 $ 2,204,828,045
0.18536 0.18494 0.18514 0.18526 0.18540 0.18505
Fiscal Year
135
2015 2016 2017 2018
1.00000 1.00000 1.00000 1.00000
Cuesta Community College 2014 A & A1 0.00000 0.01925 0.01925 0.01925 Grover Beach Road 2014 Series A & B 0.00000 0.02400 0.03431 0.05135 Lopez Dam Retrofit 2011 Ref 2000 0.00992 0.00982 0.00882 0.00732 Lucia Mar Unified 0.04094 0.04094 0.03994 0.08194
State Water Bond 0.00400 0.00374 0.00400 0.00400
1.05486 1.09775 1.10632 1.16386
0.18362 0.18423 0.18253 0.18223
0.18390 0.18532 0.18500 0.18547
Notes:
This 1% is shared by all taxing agencies for which the subject property resides within. In addition to the 1% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City.
Not all overlapping rates apply to all property owners. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known. and is subject to the limitations described above.
(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012-13 and years therafter.
(5) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in FY 2013-14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.
Challenges to recognized enforceable obligations are assumed to have been resolved during FY 2012-13. For the purpose of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
HDL, Coren & Cone FY 2014-15 to FY 2023-24
Redevelopment Rate (4)
Total Direct Rate (5)
(1) In 1978, California voters passed Proposition 13 which set the property tax rate Data Source: San Luis Obispo County Assessor FY 2014-15 to FY 2023-24 Combined Agency
Basic Levy (1)
Total Direct & Overlapping (2) Tax Rates
City's Share of 1% Levy Per Prop 13 (3)
Voter Approved City Debt Rate
CITY OF GROVER BEACH
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
136
2019 2020 2021 2022 2023 2024
1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
0.01925 0.01925 0.01925 0.01925 0.01925 0.01925
0.08500 0.08500 0.08500 0.08500 0.09500 0.09500
0.00489 0.00489 0.00600 0.00600 0.00600 0.00600
0.08094 0.07234 0.05749 0.05878 0.03950 0.03500
0.00400 0.00400 0.00400 0.00400 0.00400 0.00363
1.19408 1.18548 1.17174 1.17303 1.16375 1.15888
0.18214 0.18174 0.18129 0.18223 0.18194 0.18131
0.18536 0.18494 0.18514 0.18526 0.18540 0.18505
Fiscal Year
137
CITY OF GROVER BEACH
Current Year and Nine Fiscal Years Ago
Taxpayer Type of Business
Taxable Assessed
Value Rank
Percent of Total
City Taxable
Assessed Value
Safeway Realty LLC Commercial $ 14,096,193 1 0.64%
Searidge LP Residential 12,068,640 2 0.55%
Siyaram LLC Commercial 11,801,170 3 0.54%
California Fine Wire Company Industrial 11,169,788 4 0.51% Grover Beach Ramona Garden
Apartments Residential 6,630,000 5 0.30%
Vision To Life LLC Residential 5,819,266 6 0.26%
Manfred G Freutel Trust Residential 5,501,259 7 0.25%
Philip G Korte Trust Residential 5,068,067 8 0.23%
James A Cashin Trust Et Al Residential 4,856,534 9 0.22% Behrooz Zarrabian Trust Commercial 4,779,784 10 0.22%
Top Ten Total $ 81,790,701 3.71%
City Total $ 2,174,335,626
Unitary Tax Roll
HDL, Coren & Cone FY 2014-15 & FY 2023-24
PRINCIPAL PROPERTY TAXPAYERS
2024
Data Source: San Luis Obispo County Assessor FY 2014-15 to FY 2023-24 Combined Tax Rolls and the SBE Non 138
Taxpayer Type of Business
Taxable Assessed
Value Rank
Percent of Total
City Taxable
Assessed Value
Papich Construction Company Inc Unsecured $ 13,753,969 1 0.98% Von's Companies Inc Commercial 10,762,604 2 0.77%
PC Landing Corporation Industrial 8,918,365 3 0.64%
John B Forde Trust ETAL Commercial 8,089,441 4 0.58%
PI Properties No 39 LLC Commercial 7,052,500 5 0.50%
Ranelletti Family Limited
Partnership Commercial 6,860,952 6 0.49%
Oak Park Village Apartment LLC Residential 5,294,627 7 0.38% Manfred G Freutel Trust Residential 4,668,970 8 0.33%
MSB Properties Inc Commercial 4,649,070 9 0.33%
Vision To Life LLC Residential 4,494,065 10 0.32%
Top Ten Total $ 74,544,563 5.32%
City Total $ 1,318,664,379
2015
139
CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal Year
Taxes Levied for the
Fiscal Year Amount Percentage of Levy
2015 2,555,715 2,555,715 100.00%
2016 2,681,559 2,681,559 100.00%
2017 2,922,009 2,922,009 100.00%
2018 3,035,376 3,035,376 100.00%
2019 3,201,623 3,201,623 100.00%
2020 3,353,952 3,353,952 100.00%
2021 3,441,883 3,441,883 100.00%
2022 3,654,906 3,654,906 100.00%
2023 3,955,026 3,955,026 100.00%
2024 3,257,508 3,257,508 100.00%
Notes:
Source: San Luis Obispo County Assessor
PROPERTY TAX LEVIES AND COLLECTIONS
Collected within the Fiscal Year of the Levy
Only current secured property taxes are reported on this schedule. The City has elected the Teeter Plan method of property tax collection, whereby the County remits 100% of taxes levied and pursues collection and retains any delinquent taxes and related penalties and interest. 140
CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal Year City Supplemental
State of
California
County of San
Luis Obispo Total Rate
2015 0.75% 0.50% 6.50% 0.25% 8.00%
2016 0.75% 0.50% 6.50% 0.25% 8.00%
2017 1.00% 0.50% 6.00% 0.25% 7.75%
2018 1.00% 0.50% 6.00% 0.25% 7.75%
2019 1.00% 0.50% 6.00% 0.25% 7.75%
2020 1.00% 0.50% 6.00% 0.25% 7.75%
2021 1.00% 1.50% 6.00% 0.25% 8.75%
2022 1.00% 1.50% 6.00% 0.25% 8.75%
2023 1.00% 1.50% 6.00% 0.25% 8.75%
2024 1.00% 1.50% 6.00% 0.25% 8.75%
Notes:
In 2020, the City voters authorized a one percent (1.0%) transaction and use tax, effective November 3, 2020.
Source: STATE OF California - Board of Equalization
DIRECT AND OVERLAPPING SALES TAX RATES
City Direct Rates Overlapping Rates
141
CITY OF GROVER BEACH
Last Ten Fiscal Years
(in thousands of dollars)
2015 2016 2017 2018
Eating and Drinking Places $ 36,908 $ 43,476 $ 44,113 $ 43,560 Auto Dealers and Supplies 32,276 30,325 29,694 11,235
Other Retail Stores 16,906 17,250 13,557 30,545
All Other Outlets 28,165 33,477 31,236 36,245
Total $ 114,25ϱ $ 124,528 $ 118,600 $ 121,585
Source: California Municipal Statistics
TAXABLE SALES BY CATEGORY
142
2019 2020 2021 2022 2023 2024
$ 46,209 47,219 $ 49,853 $ 52,076 $ 50,781 $ 51,542 $
32,582 9,588 11,334 10,311 9,467 11,923
33,571 43,583 54,953 50,802 43,300 35,829
32,579 54,369 47,025 57,519 71,874 63,250
$ 145,951 $ 153,749 $ 163,165 $ 170,708 $ 175,422 $ 162,544 Fiscal Year
143
CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal
Year
LeasePurchase
Financing
Subscription
Liability
Financed
Purchases
Lease
Liability
State
Loan
General
Obligation
Bonds
Financed
Purchases
Lease
Liability
Water
Revenue
Bonds
Total Primary
Government
Outstanding
Debt to
Assessed
Value
Debt per
Capita
2015 277,645 5,372,537 5,650,182 0.40% $ 430.69
2016 254,752 13,862,147 14,116,899 0.96% $ 1,053.74
2017 231,622 13,717,418 13,949,040 0.90% $ 1,038.03
2018 77,419 208,261 29,452,999 116,128 #REF! #REF! #REF! 2019 392,934 184,665 29,050,145 89,165 #REF! #REF! #REF! 2020 277,135 160,837 28,297,291 60,867 4,456,000 #REF! #REF! #REF! 2021 159,035 136,766 27,519,437 31,168 4,282,000 #REF! #REF! #REF! 2022 371,147 70,509 112,454 38,134,487 4,102,000 42,790,597 2.18% $ 3,259.49 2023 313,905 87,898 37,223,345 3,918,000 41,543,148 1.99% $ 3,332.25 2024 910,420 114,845 464,169 63,098 36,277,203 66,310 3,730,000 40,534,470 1.94% $ 3,251.34
RATIOS OF OUTSTANDING DEBT BY TYPE
Governmental Activities Business-Type Activities
144
CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal
Year
General
Bonded Debt
Less: Amount
Available in
Debt Service
Funds
Net General
Bonded Debt
Ratio of Net
Bonded Debt
to Assessed
Value Population
Net Bonded
Debt per
Capita
2015 5,372,537 235,669 0.00% 13,119
2016 13,862,147 673,579 13,188,568 0.90% 13,397 984.44
2017 13,717,418 654,212 13,063,206 0.84% 13,438 972.11
2018 29,452,999 1,442,555 28,010,444 1.72% 13,560 2,065.67 2019 29,050,145 1,602,656 27,447,489 1.59% 13,533 2,028.19 2020 28,297,291 1,510,458 26,786,833 1.47% 13,214 2,027.16 2021 27,519,437 1,477,942 26,041,495 1.37% 13,128 1,983.66 2022 38,134,487 2,681,892 35,452,595 1.81% 12,707 2,790.01 2023 37,223,345 2,671,338 34,552,007 1.99% 12,467 2,771.48 2024 36,277,203 2,843,458 33,433,745 2.39% 12,481 2,678.77
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
145
CITY OF GROVER BEACH
For the Fiscal Year Ended June 30, 2024
Jurisdiction
Net Debt
Outstanding
Percentage
Applicable to the
City
Amount Applicable
to the City
Direct and Overlapping Tax and Assessment Debt:
San Luis Obispo County Flood Control and Water Conservation District, Zone No. 3 $ 4,925,000 18.263% $ 899,453
San Luis Obispo County Community College District 205,380,000 3.085% 6,335,973 Lucia Mar Unified School District 146,249,802 11.432% 16,719,277 City of Grover Beach 33,550,000 100.000% 33,550,000 (1) Total Direct and Overlapping Tax and Assessment Debt 57,504,703 Overlapping General Fund Debt:
San Luis Obispo County Certificates of Participation 81,021,650 3.098% 2,510,051 San Luis Obispo County Pension Obligations 22,760,324 3.098% 705,115 Lucia Mar Unified School District General Fund Obligations 14,015,000 11.432% 1,602,195 City of Grover Beach General Fund Obligations 542,588 100.000% 542,588 (2) Total Overlapping General Fund Debt 5,359,949
Overlapping Tax Increment Debt (Successor Agency): 2,525,000 100.000% 2,525,000 Total Direct Debt 34,092,588
Total Overlapping Debt 31,297,064
Combined Total Debt $ 65,389,652 (3)
Ratios to FY 2023-24 Assessed Valuation:
Direct Debt ($33,550,000) 1.52%
Total Direct and Overlapping Tax and Assessment Debt 2.61% Total Direct Debt ($34,092,588) 1.55%
Combined Total Debt 2.97%
Ratio to Redevelopment Incremental Valuation ($314,621,028):
Total Overlapping Tax Increment Debt 0.80%
Notes:
(1) Excludes general obligation bonds to be sold.
Source: California Municipal Statistics
(2) Share of San Luis Obispo County Financing Authority lease revenue bonds.
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. 146
CITY OF GROVER BEACH
Last Ten Fiscal Years
Assessed value $ 2,204,827,845
Debt limit (15% of assessed value) 330,724,177
Debt applicable to limit
$ 330,724,177
Fiscal Year Debt Limit
Debt Applicable
to Limit
Legal Debt
Margin
Debt as
Percentage of
Limit
2015 210,252,918 210,252,918 0.00%
2016 219,804,746 219,804,746 0.00%
2017 232,316,859 232,316,859 0.00%
2018 244,105,584 244,105,584 0.00%
2019 259,643,796 259,643,796 0.00%
2020 272,498,183 272,498,183 0.00%
2021 285,231,483 285,231,483 0.00%
2022 294,355,054 294,355,054 0.00%
2023 313,365,092 313,365,092 0.00%
2024 330,724,177 330,724,177 0.00%
Note: The legal debt margin for the City of Grover Beach is calculated using a debt limit of 15% of the assessed value of property within city limits.
Data Source: San Luis Obispo County Assessor
City of Grover Beach, Administrative Services Department
LEGAL DEBT MARGIN
Legal Debt Margin Calculation for the Current Year:
Legal Debt Margin - Current Year
147
CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal Year Population
Personal
Income
Per Capita
Personal
Income
Unemployment
Rate Median Age
2014 13,153 333,876 25,384 5.1% 38.7
2015 13,119 342,721 26,124 6.2% 38.1
2016 13,397 357,180 26,661 5.1% 38.3
2017 13,438 384,587 28,619 4.7% 39.1
2018 13,560 411,163 30,321 2.8% 37.9
2019 13,533 417,525 30,852 2.9% 35.5
2020 13,214 432,525 32,732 3.6% 36.2
2021 13,128 457,054 34,815 6.9% 37.2
2022 12,707 465,071 36,599 4.5% 38.4
2023 12,467 478,002 38,341 2.0% 39.8
2024 12,481 512,622 41,072 2.3% 40.3
Demographic Data is totaled from Census Block Groups that overlap the City's boundaries.
HDL, Coren & Cone FY 2014-15 to FY 2023-24
DEMOGRAPHIC AND ECONOMIC STATISTICS
Notes and Data Sources: Population: California State Department of Finance.
Unemployment Data: California Employment Development Department.
Income and Age Data: US Census Bureau, most recent American Community Survey.
Projections are developed by incorporation all of the prior census data released to date. 148
CITY OF GROVER BEACH
Last Ten Fiscal Years
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General government 15 15 15 17 17 17 17 19 19 19
Public safety 29 29 29 32 32 34 34 37 30 31
Community development 3 3 3 5 5 5 5 5 5 6
Public works 13 16 17 15 16 16 16 16 16 13
Parks and recreation 3 3 3 3 3 3 3 3 3 -
Total 63 66 67 72 73 75 75 80 73 69
Notes:
FULL-TIME EQUIVALENT GOVERNMENT EMPLOYEES BY FUNCTION
Source: City of Grover Beach payroll records
A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Full-time equivalent employment is calculated by dividing total labor hours by 2,080. 149
CITY OF GROVER BEACH
Last Ten Fiscal Years
Function/Program 2015 2016 2017 2018 2019
General Government:
Number of business licenses 1,390 1,445 1,392 1,510 1,379 Number of recruitments 9 2 12 11 14
Police:
Physical arrests 770 799 827 585 505
Traffic citations 887 1,361 1,212 743 964
Public Works:
Miles of streets resurfaced 0.46 1.26 5.65 0.41 0.97
Water customer accounts 4,764 4,760 4,816 4,844 4,832
Acre feet of water consumed 1,252 1,209 1,250 1,220 1,182 Community Development:
Building permits issued 339 404 275 326 276
Parks and Recreation:
Number of class admissions 787 981 951 1,133 1,020
Operating Indicators by Function/Program
Source: City of Grover Beach Departments
Note: General government information related to recruitments unavailable prior to 2015 150
2020 2021 2022 2023 2024
1,374 1,421 1,434 1,469 1,892
13 8 16 32 16
413 694 681 598 655
761 897 783 676 352
1.90 3.35 3.80 2.44 1.20
4,960 4,983 5,277 5,298 4,981
1,114 1,173 1,137 1,022 1,046
361 297 340 317 452
944 179 782 1,049 1,582
Fiscal Year
151
CITY OF GROVER BEACH
Last Ten Fiscal Years
Function/Program 2015 2016 2017 2018 2019
Police:
Stations 1 1 1 1 1
Patrol Units 6 6 6 6 6
Public Works:
Miles of streets 33.34 33.34 33.34 33.34 33.34
Streetlights 20 20 20 20 20
Traffic signals 32 32 32 32 32
Parks and Recreation:
Community centers 1 1 1 1 1
Parks 7 7 7 7 7
Park acreage 14.0 14.0 14.0 14.0 14.0
Water:
Miles of mains 48 48 48 48 48
Fire hydrants 400 400 400 400 400
Number of connections 5,248 5,256 5,191 5,254 5,184
Storage capacity (thousands of gallons) 4,500 4,500 4,500 4,500 4,500 Sewer:
Miles of sewers 35 35 35 35 35
Number of connections 5,052 5,109 5,117 5,115 5,045
Note:
Capital Asset Statistics by Function/Program
Source: City of Grover Beach Departments
Sewer treatment provided by South San Luis Obispo County Sanitation District as a pass through by the City which collects the fees and remits to the Sanitation District. 152
2020 2021 2022 2023 2024
1 1 1 1 1
6 6 6 6 6
33.34 33.34 33.34 33.34 33.34
48 20 48 48 48
32 32 32 32 32
1 1 1 1 1
7 7 7 7 7
14.0 14.0 14.0 14.0 14.0
48 48 48 48 48
400 400 400 400 400
5,258 5,270 5,277 5,298 5,277
4,500 4,500 4,500 4,500 4,500
35.33 35 35.33 35.33 35.33
5,119 5,120 5,138 5,199 5,058
Fiscal Year
153
Ending Balance
-38,000.00
Running Balance
0.000.000.000.00
38,000.00
0.00 -38,000.00
-211,882.78
Running Balance
-13,742.59-27,577.25-40,553.72-40,553.72-55,103.75-69,653.75-55,103.72-55,103.75-68,774.99-55,103.75-41,432.51-55,103.75-68,774.99-55,103.75-68,774.99-55,103.75-68,551.97-84,640.21-98,486.62 -111,932.26-126,253.06-140,179.24-153,529.77-176,347.42 1/10/2025 1:18:21 PM Page 1 of 13
04/30/2024 GLPKT01070 JN02276 JE to record MMA Int rev Apr 2024 14,320.8005/31/2024 GLPKT01228 JN02290 Fund 201 Interest May 2024 13,926.1806/28/2024 GLPKT01462 JN02331 JUNE 2024 FUND 201 INTEREST 13,350.5306/30/2024 GLPKT02037 JN02445 Adj for Market Value Investment US bank 22,817.6512/29/2023 GLPKT00268 JN01933 FUND 201 INTEREST RECEIVED 11/30/23 13,448.2201/31/2024 GLPKT00373 JN01947 Fund 201 Money Market Interest January 202 16,088.2402/29/2024 GLPKT00495 JN02028 Fund 201 Money Market Interest Feb 2024 13,846.4103/29/2024 GLPKT00701 JN02172 FUND 201 INTEREST RECEIVED 3/29/24 13,445.6411/30/2023 GLPKT00911 JN02227 to fix nov mma int hit pooled cash 13,671.2411/30/2023 GLPKT02033 JN02439 to fix nov mma int hit pooled cash 13,671.2411/30/2023 GLPKT02033 JN02441 NOV BANK INT FUND 201 13,671.2411/30/2023 GLPKT02035 JN02443 NOV BANK INT FUND 201 13,671.2411/30/2023 GLPKT00160 JN01864 FUND 201 INTEREST RECEIVED 11/30/23 13,671.2411/30/2023 GLPKT00499 JN02032 FUND 201 INTEREST RECEIVED 11/30/23 13,671.2411/30/2023 GLPKT00501 JN02033 FUND 201 INTEREST RECEIVED 11/30/23 13,671.2411/30/2023 GLPKT00503 JN02036 FUND 201 INTEREST RECEIVED 11/30/23 13,671.2410/31/2023 GLPKT00063 GL-127137-201 OCT 23 Money Market Interest-2022 Issuanc 14,550.0310/31/2023 GLPKT00112 Rev-GL-127137-201 REV-OCT 23 Money Market Interest-2022 Iss 14,550.0010/31/2023 GLPKT00112 Rev-GL-127137-201 OCT 23 Money Market Interest-2022 Issuanc 14,550.0310/31/2023 BRPKT00008 Mechanics Bank (Mon additional .03 int income 0.0307/31/2023 GLPKT00010 JN00400 Imported GL Balances 13,742.5908/31/2023 GLPKT00011 JN00435 Imported GL Balances 13,834.6609/30/2023 GLPKT00012 JN00470 Imported GL Balances 12,976.4710/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 38,000.00
03/31/2024 GLPKT01019 JN02254 JE to record funding from water fund to proj 2295-16-601 38,000.00201-000-43000-000 Interest Income 0.00 -211,882.78 69,234.99 281,117.77Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits10/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 1301/31/2024 APPKT00345 0106017 CIP 2295-16 & CIP 2274 SERVICES RENDERED 09438 - J.F. Will Company, Inc. 2295-16-601 38,000.00 Payment Number: 75376
01/31/2024 GLPKT01018 JN02253 JE to reclass JF Will inv 0106017 2295-16-601Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits07/31/2023 GLPKT00010 JN00400 Imported GL Balances08/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL Balances Detail Report
City of Grover Beach, CA Account Detail
Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total CreditsRevenue201-000-40000-000 Transfers In 0.00 -38,000.00 38,000.00 76,000.00 Ending Balance
-211,882.78
Running Balance
-211,882.78
-800.00
Running Balance
0.000.000.000.00
-6,500.00
-800.00
0.00 Running Balance
0.000.000.000.00
161,828.51
Running Balance
9,880.59
21,833.2734,026.9040,085.4934,026.9040,085.4945,740.0652,369.6058,481.5858,927.6065,232.5965,239.0865,248.6571,608.0878,289.8384,596.7790,642.0197,072.26 103,496.65
02/09/2024 GLPKT00474 PR-128442 Payroll Cycle 3 (01/22/2024-02/04/2024) 6,430.2502/23/2024 PYPKT00093 PYPKT00093 - PE 2-18 PYPKT00093 - PE 2-18-24 - Period 2/5/2024 - 6,424.39 1/10/2025 1:18:21 PM Page 2 of 13
12/15/2023 GLPKT00229 PR-127915 Payroll Cycle 25 (11/27/2023-12/10/2023) 6,359.4312/29/2023 GLPKT00275 PR-128047 Payroll Cycle 26 (12/11/2023-12/24/2023) 6,681.7501/12/2024 GLPKT00338 PR-128215 Payroll Cycle 1 (12/25/2023-01/07/2024) 6,306.9401/26/2024 GLPKT00363 PR-128327 Payroll Cycle 2 (01/08/2024-01/21/2024) 6,045.2412/01/2023 GLPKT00161 PR-127356 Standalone batch created 2023-11-16 09:47: 446.0212/01/2023 GLPKT00161 PR-127826 Payroll Cycle 24 (11/13/2023-11/26/2023) 6,304.9912/01/2023 GLPKT00161 PR-127827 Standalone batch created 2023-12-01 09:30: 6.4912/04/2023 GLPKT00589 PR-128824 Standalone batch created 2023-12-04 09:41: 9.57 6,058.59
10/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 6,058.5910/20/2023 GLPKT00044 PR-126549 Payroll Cycle 21 (10/02/2023-10/15/2023) 5,654.5711/03/2023 GLPKT00063 PR-127132 Payroll Cycle 22 (10/16/2023-10/29/2023) 6,629.5411/17/2023 GLPKT00133 PR-127299 Payroll Cycle 23 (10/30/2023-11/12/2023) 6,111.9808/31/2023 GLPKT00011 JN00435 Imported GL Balances 11,952.6809/30/2023 GLPKT00012 JN00470 Imported GL Balances 12,193.6310/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 6,058.5910/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/
0.00 161,828.51 167,887.10 6,058.59
Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits07/31/2023 GLPKT00010 JN00400 Imported GL Balances 9,880.5907/31/2023 GLPKT00010 JN00400 Imported GL Balances08/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL Balances10/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13201-165-50010-000 Salaries: Full-Time Total Revenue: 0.00 -250,682.78 112,934.99 363,617.77 -250,682.78 Expense
201-000-51250-000 Legal Services 0.00 0.00 0.00 0.00Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits10/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 1311/02/2023 GLPKT00133 CR-127195-201 Batch Number: CCR-00009584, Batch Date: 2 6,500.0001/24/2024 APPKT00295 1044 Ramona PPP REFUND - 1044 RAMONA 10915 - Wina Gill 5,700.00 Payment Number: 75237
Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits07/31/2023 GLPKT00010 JN00400 Imported GL Balances08/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL BalancesPost Date Packet Number Source Transaction Description Vendor Project Account Debits Credits06/30/2024 GLPKT02533 JN02500 To properly adjust investment balances to fai 35,535.36201-000-45070-000 Miscellaneous 0.00 -800.00 5,700.00 6,500.00 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits201-000-43000-000 Interest Income - Continued 0.00 -211,882.78 69,234.99 281,117.77 Ending Balance
161,828.51
Running Balance
110,106.81116,250.82122,583.75128,690.40128,704.62134,805.44140,912.68147,025.71147,036.05153,105.72159,219.25159,221.63161,828.51 426.13
Running Balance
13.8342.9876.7387.8376.7387.8393.91
103.72146.06236.39270.23285.42312.10319.75334.92344.75347.23372.27375.31386.92406.87422.32426.13 06/28/2024 PYPKT00205 PYPKT00205 - PE 6-23 PYPKT00205 - PE 6-23-24 - Period 6/10/2024 15.4506/30/2024 GLPKT01774 JN02369 ACCRUAL 3.81 1/10/2025 1:18:21 PM Page 3 of 13
03/22/2024 PYPKT00133 PYPKT00133 - Payroll PYPKT00133 - Payroll Period Ending 3-17-24 25.0404/05/2024 PYPKT00139 PYPKT00139 - Payroll PYPKT00139 - Payroll PE 3-31-24 - Period 3/1 3.0405/03/2024 PYPKT00172 PYPKT00172 - PAYROL PYPKT00172 - PAYROLL PE 4-28-24 - Period 4 11.6105/31/2024 PYPKT00185 PYPKT00185 - Payroll PYPKT00185 - Payroll PE 5-26-24 - Period 5/1 19.9501/26/2024 GLPKT00363 PR-128327 Payroll Cycle 2 (01/08/2024-01/21/2024) 7.6502/09/2024 GLPKT00474 PR-128442 Payroll Cycle 3 (01/22/2024-02/04/2024) 15.1702/23/2024 PYPKT00093 PYPKT00093 - PE 2-18 PYPKT00093 - PE 2-18-24 - Period 2/5/2024 - 9.8303/08/2024 PYPKT00127 PYPKT00127 - Payroll PYPKT00127 - Payroll PE 3-3-24 - Period 2/19 2.4812/01/2023 GLPKT00161 PR-127826 Payroll Cycle 24 (11/13/2023-11/26/2023) 90.3312/15/2023 GLPKT00229 PR-127915 Payroll Cycle 25 (11/27/2023-12/10/2023) 33.8412/29/2023 GLPKT00275 PR-128047 Payroll Cycle 26 (12/11/2023-12/24/2023) 15.1901/12/2024 GLPKT00338 PR-128215 Payroll Cycle 1 (12/25/2023-01/07/2024) 26.68
11.10 10/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 11.1010/20/2023 GLPKT00044 PR-126549 Payroll Cycle 21 (10/02/2023-10/15/2023) 6.0811/03/2023 GLPKT00063 PR-127132 Payroll Cycle 22 (10/16/2023-10/29/2023) 9.8111/17/2023 GLPKT00133 PR-127299 Payroll Cycle 23 (10/30/2023-11/12/2023) 42.3408/31/2023 GLPKT00011 JN00435 Imported GL Balances 29.1509/30/2023 GLPKT00012 JN00470 Imported GL Balances 33.7510/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 11.1010/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/201-165-50050-000 Overtime 0.00 426.13 437.23 11.10Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits07/31/2023 GLPKT00010 JN00400 Imported GL Balances 13.8306/14/2024 PYPKT00200 PYPKT00200 - Payroll PYPKT00200 - Payroll PE 6-9-24 - Period 5/27 6,069.6706/28/2024 PYPKT00205 PYPKT00205 - PE 6-23 PYPKT00205 - PE 6-23-24 - Period 6/10/2024 6,113.5306/28/2024 PYPKT00216 PYPKT00216 - Raul Va PYPKT00216 - Raul Vargas Adj. 6-28-24 - Peri 2.3806/30/2024 GLPKT01774 JN02369 ACCRUAL 2,606.8805/03/2024 PYPKT00172 PYPKT00172 - PAYROL PYPKT00172 - PAYROLL PE 4-28-24 - Period 4 6,100.8205/17/2024 PYPKT00179 PYPKT00179 - Payroll PYPKT00179 - Payroll PE 5-12-24 - Period 4/2 6,107.2405/31/2024 PYPKT00185 PYPKT00185 - Payroll PYPKT00185 - Payroll PE 5-26-24 - Period 5/1 6,113.0305/31/2024 PYPKT00187 PYPKT00187 - Special PYPKT00187 - Special Ck Run 5-31-24 - Period 10.3403/22/2024 PYPKT00133 PYPKT00133 - Payroll PYPKT00133 - Payroll Period Ending 3-17-24 6,144.0104/05/2024 PYPKT00139 PYPKT00139 - Payroll PYPKT00139 - Payroll PE 3-31-24 - Period 3/1 6,332.9304/19/2024 PYPKT00158 PYPKT00158 - Payroll PYPKT00158 - Payroll PE 4-14-24 - Period 4/1 6,106.6504/19/2024 PYPKT00168 PYPKT00168 - Manual PYPKT00168 - Manual Checks Flores & Green 14.22201-165-50010-000 Salaries: Full-Time - Continued 0.00 161,828.51 167,887.10 6,058.59Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits03/08/2024 PYPKT00127 PYPKT00127 - Payroll PYPKT00127 - Payroll PE 3-3-24 - Period 2/19 6,610.16 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits Ending Balance
9,653.75
Running Balance
600.83
1,328.592,071.892,440.952,071.892,440.952,777.123,163.003,518.823,546.473,918.743,919.143,919.734,295.354,710.565,093.925,460.855,855.626,247.726,649.957,025.897,411.407,783.377,784.258,156.528,528.508,909.238,909.879,280.009,653.609,653.752,257.96 Running Balance
140.53310.75484.63570.99484.63570.99649.64739.90
1/10/2025 1:18:21 PM Page 4 of 13
10/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/ 86.3610/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 86.3610/20/2023 GLPKT00044 PR-126549 Payroll Cycle 21 (10/02/2023-10/15/2023) 78.6511/03/2023 GLPKT00063 PR-127132 Payroll Cycle 22 (10/16/2023-10/29/2023) 90.2607/31/2023 GLPKT00010 JN00400 Imported GL Balances 140.5308/31/2023 GLPKT00011 JN00435 Imported GL Balances 170.2209/30/2023 GLPKT00012 JN00470 Imported GL Balances 173.8810/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 86.3606/28/2024 PYPKT00205 PYPKT00205 - PE 6-23 PYPKT00205 - PE 6-23-24 - Period 6/10/2024 373.6006/28/2024 PYPKT00216 PYPKT00216 - Raul Va PYPKT00216 - Raul Vargas Adj. 6-28-24 - Peri 0.15201-165-50070-000 Medicare 0.00 2,257.96 2,344.32 86.36Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits05/17/2024 PYPKT00179 PYPKT00179 - Payroll PYPKT00179 - Payroll PE 5-12-24 - Period 4/2 371.9805/31/2024 PYPKT00185 PYPKT00185 - Payroll PYPKT00185 - Payroll PE 5-26-24 - Period 5/1 380.7305/31/2024 PYPKT00187 PYPKT00187 - Special PYPKT00187 - Special Ck Run 5-31-24 - Period 0.6406/14/2024 PYPKT00200 PYPKT00200 - Payroll PYPKT00200 - Payroll PE 6-9-24 - Period 5/27 370.1304/05/2024 PYPKT00139 PYPKT00139 - Payroll PYPKT00139 - Payroll PE 3-31-24 - Period 3/1 385.5104/19/2024 PYPKT00158 PYPKT00158 - Payroll PYPKT00158 - Payroll PE 4-14-24 - Period 4/1 371.9704/19/2024 PYPKT00168 PYPKT00168 - Manual PYPKT00168 - Manual Checks Flores & Green 0.8805/03/2024 PYPKT00172 PYPKT00172 - PAYROL PYPKT00172 - PAYROLL PE 4-28-24 - Period 4 372.2702/09/2024 GLPKT00474 PR-128442 Payroll Cycle 3 (01/22/2024-02/04/2024) 394.7702/23/2024 PYPKT00093 PYPKT00093 - PE 2-18 PYPKT00093 - PE 2-18-24 - Period 2/5/2024 - 392.1003/08/2024 PYPKT00127 PYPKT00127 - Payroll PYPKT00127 - Payroll PE 3-3-24 - Period 2/19 402.2303/22/2024 PYPKT00133 PYPKT00133 - Payroll PYPKT00133 - Payroll Period Ending 3-17-24 375.9412/15/2023 GLPKT00229 PR-127915 Payroll Cycle 25 (11/27/2023-12/10/2023) 375.6212/29/2023 GLPKT00275 PR-128047 Payroll Cycle 26 (12/11/2023-12/24/2023) 415.2101/12/2024 GLPKT00338 PR-128215 Payroll Cycle 1 (12/25/2023-01/07/2024) 383.3601/26/2024 GLPKT00363 PR-128327 Payroll Cycle 2 (01/08/2024-01/21/2024) 366.9312/01/2023 GLPKT00161 PR-127356 Standalone batch created 2023-11-16 09:47: 27.6512/01/2023 GLPKT00161 PR-127826 Payroll Cycle 24 (11/13/2023-11/26/2023) 372.2712/01/2023 GLPKT00161 PR-127827 Standalone batch created 2023-12-01 09:30: 0.4012/04/2023 GLPKT00589 PR-128824 Standalone batch created 2023-12-04 09:41: 0.59 369.06
10/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 369.0610/20/2023 GLPKT00044 PR-126549 Payroll Cycle 21 (10/02/2023-10/15/2023) 336.1711/03/2023 GLPKT00063 PR-127132 Payroll Cycle 22 (10/16/2023-10/29/2023) 385.8811/17/2023 GLPKT00133 PR-127299 Payroll Cycle 23 (10/30/2023-11/12/2023) 355.8208/31/2023 GLPKT00011 JN00435 Imported GL Balances 727.7609/30/2023 GLPKT00012 JN00470 Imported GL Balances 743.3010/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 369.0610/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/201-165-50060-000 Social Security 0.00 9,653.75 10,022.81 369.06Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits07/31/2023 GLPKT00010 JN00400 Imported GL Balances 600.83 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits Ending Balance
2,257.96
Running Balance
823.13829.60916.66916.75916.89
1,004.751,101.791,191.411,277.221,369.551,461.241,555.341,643.291,733.451,820.461,820.671,907.731,994.742,083.782,083.932,170.542,257.932,257.965,023.00 Running Balance
5,023.005,023.005,023.005,023.00
298.87
Running Balance
20.2744.4868.6880.7768.6880.7792.85
105.08117.33
1/10/2025 1:18:21 PM Page 5 of 13
12.09 10/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 12.0910/20/2023 GLPKT00044 PR-126549 Payroll Cycle 21 (10/02/2023-10/15/2023) 12.0811/03/2023 GLPKT00063 PR-127132 Payroll Cycle 22 (10/16/2023-10/29/2023) 12.2311/17/2023 GLPKT00133 PR-127299 Payroll Cycle 23 (10/30/2023-11/12/2023) 12.2508/31/2023 GLPKT00011 JN00435 Imported GL Balances 24.2109/30/2023 GLPKT00012 JN00470 Imported GL Balances 24.2010/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 12.0910/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/201-165-50090-000 Long Term Disability 0.00 298.87 310.96 12.09Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits07/31/2023 GLPKT00010 JN00400 Imported GL Balances 20.2707/31/2023 GLPKT00010 JN00400 Imported GL Balances 5,023.0008/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL Balances10/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 1306/28/2024 PYPKT00216 PYPKT00216 - Raul Va PYPKT00216 - Raul Vargas Adj. 6-28-24 - Peri 0.03201-165-50080-000 Workers Compensation 0.00 5,023.00 5,023.00 0.00Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits05/31/2024 PYPKT00185 PYPKT00185 - Payroll PYPKT00185 - Payroll PE 5-26-24 - Period 5/1 89.0405/31/2024 PYPKT00187 PYPKT00187 - Special PYPKT00187 - Special Ck Run 5-31-24 - Period 0.1506/14/2024 PYPKT00200 PYPKT00200 - Payroll PYPKT00200 - Payroll PE 6-9-24 - Period 5/27 86.6106/28/2024 PYPKT00205 PYPKT00205 - PE 6-23 PYPKT00205 - PE 6-23-24 - Period 6/10/2024 87.3904/19/2024 PYPKT00158 PYPKT00158 - Payroll PYPKT00158 - Payroll PE 4-14-24 - Period 4/1 87.0104/19/2024 PYPKT00168 PYPKT00168 - Manual PYPKT00168 - Manual Checks Flores & Green 0.2105/03/2024 PYPKT00172 PYPKT00172 - PAYROL PYPKT00172 - PAYROLL PE 4-28-24 - Period 4 87.0605/17/2024 PYPKT00179 PYPKT00179 - Payroll PYPKT00179 - Payroll PE 5-12-24 - Period 4/2 87.0102/23/2024 PYPKT00093 PYPKT00093 - PE 2-18 PYPKT00093 - PE 2-18-24 - Period 2/5/2024 - 91.6903/08/2024 PYPKT00127 PYPKT00127 - Payroll PYPKT00127 - Payroll PE 3-3-24 - Period 2/19 94.1003/22/2024 PYPKT00133 PYPKT00133 - Payroll PYPKT00133 - Payroll Period Ending 3-17-24 87.9504/05/2024 PYPKT00139 PYPKT00139 - Payroll PYPKT00139 - Payroll PE 3-31-24 - Period 3/1 90.1612/29/2023 GLPKT00275 PR-128047 Payroll Cycle 26 (12/11/2023-12/24/2023) 97.0401/12/2024 GLPKT00338 PR-128215 Payroll Cycle 1 (12/25/2023-01/07/2024) 89.6201/26/2024 GLPKT00363 PR-128327 Payroll Cycle 2 (01/08/2024-01/21/2024) 85.8102/09/2024 GLPKT00474 PR-128442 Payroll Cycle 3 (01/22/2024-02/04/2024) 92.3312/01/2023 GLPKT00161 PR-127826 Payroll Cycle 24 (11/13/2023-11/26/2023) 87.0612/01/2023 GLPKT00161 PR-127827 Standalone batch created 2023-12-01 09:30: 0.0912/04/2023 GLPKT00589 PR-128824 Standalone batch created 2023-12-04 09:41: 0.1412/15/2023 GLPKT00229 PR-127915 Payroll Cycle 25 (11/27/2023-12/10/2023) 87.86Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits11/17/2023 GLPKT00133 PR-127299 Payroll Cycle 23 (10/30/2023-11/12/2023) 83.2312/01/2023 GLPKT00161 PR-127356 Standalone batch created 2023-11-16 09:47: 6.47 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits201-165-50070-000 Medicare - Continued 0.00 2,257.96 2,344.32 86.36 Ending Balance
298.87
Running Balance
129.62141.89154.16166.15178.14190.39202.61214.84227.12239.10251.06263.05274.99286.94298.87 13,955.20
Running Balance
951.23
2,109.923,258.193,832.953,258.193,832.954,327.694,804.855,280.065,772.945,773.446,273.626,808.847,332.687,850.228,378.168,911.859,442.809,950.81 10,498.5411,073.0311,651.3312,229.4312,806.31
1/10/2025 1:18:21 PM Page 6 of 13
04/19/2024 PYPKT00158 PYPKT00158 - Payroll PYPKT00158 - Payroll PE 4-14-24 - Period 4/1 574.4905/03/2024 PYPKT00172 PYPKT00172 - PAYROL PYPKT00172 - PAYROLL PE 4-28-24 - Period 4 578.3005/17/2024 PYPKT00179 PYPKT00179 - Payroll PYPKT00179 - Payroll PE 5-12-24 - Period 4/2 578.1005/31/2024 PYPKT00185 PYPKT00185 - Payroll PYPKT00185 - Payroll PE 5-26-24 - Period 5/1 576.8802/23/2024 PYPKT00093 PYPKT00093 - PE 2-18 PYPKT00093 - PE 2-18-24 - Period 2/5/2024 - 533.6903/08/2024 PYPKT00127 PYPKT00127 - Payroll PYPKT00127 - Payroll PE 3-3-24 - Period 2/19 530.9503/22/2024 PYPKT00133 PYPKT00133 - Payroll PYPKT00133 - Payroll Period Ending 3-17-24 508.0104/05/2024 PYPKT00139 PYPKT00139 - Payroll PYPKT00139 - Payroll PE 3-31-24 - Period 3/1 547.7312/29/2023 GLPKT00275 PR-128047 Payroll Cycle 26 (12/11/2023-12/24/2023) 535.2201/12/2024 GLPKT00338 PR-128215 Payroll Cycle 1 (12/25/2023-01/07/2024) 523.8401/26/2024 GLPKT00363 PR-128327 Payroll Cycle 2 (01/08/2024-01/21/2024) 517.5402/09/2024 GLPKT00474 PR-128442 Payroll Cycle 3 (01/22/2024-02/04/2024) 527.9411/17/2023 GLPKT00133 PR-127299 Payroll Cycle 23 (10/30/2023-11/12/2023) 475.2112/01/2023 GLPKT00161 PR-127826 Payroll Cycle 24 (11/13/2023-11/26/2023) 492.8812/01/2023 GLPKT00161 PR-127827 Standalone batch created 2023-12-01 09:30: 0.5012/15/2023 GLPKT00229 PR-127915 Payroll Cycle 25 (11/27/2023-12/10/2023) 500.1810/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/ 574.7610/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 574.7610/20/2023 GLPKT00044 PR-126549 Payroll Cycle 21 (10/02/2023-10/15/2023) 494.7411/03/2023 GLPKT00063 PR-127132 Payroll Cycle 22 (10/16/2023-10/29/2023) 477.1607/31/2023 GLPKT00010 JN00400 Imported GL Balances 951.2308/31/2023 GLPKT00011 JN00435 Imported GL Balances 1,158.6909/30/2023 GLPKT00012 JN00470 Imported GL Balances 1,148.2710/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 574.7606/28/2024 PYPKT00205 PYPKT00205 - PE 6-23 PYPKT00205 - PE 6-23-24 - Period 6/10/2024 11.93201-165-50100-000 CalPERS 0.00 13,955.20 14,529.96 574.76Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits05/03/2024 PYPKT00172 PYPKT00172 - PAYROL PYPKT00172 - PAYROLL PE 4-28-24 - Period 4 11.9605/17/2024 PYPKT00179 PYPKT00179 - Payroll PYPKT00179 - Payroll PE 5-12-24 - Period 4/2 11.9905/31/2024 PYPKT00185 PYPKT00185 - Payroll PYPKT00185 - Payroll PE 5-26-24 - Period 5/1 11.9406/14/2024 PYPKT00200 PYPKT00200 - Payroll PYPKT00200 - Payroll PE 6-9-24 - Period 5/27 11.9503/08/2024 PYPKT00127 PYPKT00127 - Payroll PYPKT00127 - Payroll PE 3-3-24 - Period 2/19 12.2203/22/2024 PYPKT00133 PYPKT00133 - Payroll PYPKT00133 - Payroll Period Ending 3-17-24 12.2304/05/2024 PYPKT00139 PYPKT00139 - Payroll PYPKT00139 - Payroll PE 3-31-24 - Period 3/1 12.2804/19/2024 PYPKT00158 PYPKT00158 - Payroll PYPKT00158 - Payroll PE 4-14-24 - Period 4/1 11.9801/12/2024 GLPKT00338 PR-128215 Payroll Cycle 1 (12/25/2023-01/07/2024) 12.2701/26/2024 GLPKT00363 PR-128327 Payroll Cycle 2 (01/08/2024-01/21/2024) 11.9902/09/2024 GLPKT00474 PR-128442 Payroll Cycle 3 (01/22/2024-02/04/2024) 11.9902/23/2024 PYPKT00093 PYPKT00093 - PE 2-18 PYPKT00093 - PE 2-18-24 - Period 2/5/2024 - 12.25Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits12/01/2023 GLPKT00161 PR-127826 Payroll Cycle 24 (11/13/2023-11/26/2023) 12.2912/15/2023 GLPKT00229 PR-127915 Payroll Cycle 25 (11/27/2023-12/10/2023) 12.27 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits201-165-50090-000 Long Term Disability - Continued 0.00 298.87 310.96 12.09 Ending Balance
13,955.20
Running Balance
12,807.1013,380.1913,955.0513,955.20
1,616.63
Running Balance
131.03255.31379.60441.72379.60441.72503.85565.98628.11690.24752.37814.49752.37814.49876.65938.81 1,000.981,076.911,152.831,228.751,306.451,342.851,420.521,461.791,539.261,616.63 10,769.42
Running Balance
1,038.982,056.493,048.213,528.713,048.213,528.71
10/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/ 480.5010/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 480.50 1/10/2025 1:18:21 PM Page 7 of 13
07/31/2023 GLPKT00010 JN00400 Imported GL Balances 1,038.9808/31/2023 GLPKT00011 JN00435 Imported GL Balances 1,017.5109/30/2023 GLPKT00012 JN00470 Imported GL Balances 991.7210/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 480.5006/14/2024 PYPKT00200 PYPKT00200 - Payroll PYPKT00200 - Payroll PE 6-9-24 - Period 5/27 77.4706/28/2024 PYPKT00205 PYPKT00205 - PE 6-23 PYPKT00205 - PE 6-23-24 - Period 6/10/2024 77.37201-165-50150-000 Medical Insurance 0.00 10,769.42 11,249.92 480.50Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits04/19/2024 PYPKT00158 PYPKT00158 - Payroll PYPKT00158 - Payroll PE 4-14-24 - Period 4/1 77.7005/03/2024 PYPKT00172 PYPKT00172 - PAYROL PYPKT00172 - PAYROLL PE 4-28-24 - Period 4 36.4005/17/2024 PYPKT00179 PYPKT00179 - Payroll PYPKT00179 - Payroll PE 5-12-24 - Period 4/2 77.6705/31/2024 PYPKT00185 PYPKT00185 - Payroll PYPKT00185 - Payroll PE 5-26-24 - Period 5/1 41.2702/23/2024 PYPKT00093 PYPKT00093 - PE 2-18 PYPKT00093 - PE 2-18-24 - Period 2/5/2024 - 62.1703/08/2024 PYPKT00127 PYPKT00127 - Payroll PYPKT00127 - Payroll PE 3-3-24 - Period 2/19 75.9303/22/2024 PYPKT00133 PYPKT00133 - Payroll PYPKT00133 - Payroll Period Ending 3-17-24 75.9204/05/2024 PYPKT00139 PYPKT00139 - Payroll PYPKT00139 - Payroll PE 3-31-24 - Period 3/1 75.9212/31/2023 GLPKT00994 JN02250 JE to adj for 3rd payroll in dec for ER portion 62.1201/12/2024 GLPKT00338 PR-128215 Payroll Cycle 1 (12/25/2023-01/07/2024) 62.1201/26/2024 GLPKT00363 PR-128327 Payroll Cycle 2 (01/08/2024-01/21/2024) 62.1602/09/2024 GLPKT00474 PR-128442 Payroll Cycle 3 (01/22/2024-02/04/2024) 62.1611/17/2023 GLPKT00133 PR-127299 Payroll Cycle 23 (10/30/2023-11/12/2023) 62.1312/01/2023 GLPKT00161 PR-127826 Payroll Cycle 24 (11/13/2023-11/26/2023) 62.1312/15/2023 GLPKT00229 PR-127915 Payroll Cycle 25 (11/27/2023-12/10/2023) 62.1312/29/2023 GLPKT00275 PR-128047 Payroll Cycle 26 (12/11/2023-12/24/2023) 62.1210/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/ 62.1210/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 62.1210/20/2023 GLPKT00044 PR-126549 Payroll Cycle 21 (10/02/2023-10/15/2023) 62.1311/03/2023 GLPKT00063 PR-127132 Payroll Cycle 22 (10/16/2023-10/29/2023) 62.1307/31/2023 GLPKT00010 JN00400 Imported GL Balances 131.0308/31/2023 GLPKT00011 JN00435 Imported GL Balances 124.2809/30/2023 GLPKT00012 JN00470 Imported GL Balances 124.2910/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 62.1206/28/2024 PYPKT00205 PYPKT00205 - PE 6-23 PYPKT00205 - PE 6-23-24 - Period 6/10/2024 574.8606/28/2024 PYPKT00216 PYPKT00216 - Raul Va PYPKT00216 - Raul Vargas Adj. 6-28-24 - Peri 0.15201-165-50110-000 Deferred Compensation 0.00 1,616.63 1,740.87 124.24Post Date Packet Number Source Transaction Description Vendor Project Account Debits CreditsPost Date Packet Number Source Transaction Description Vendor Project Account Debits Credits05/31/2024 PYPKT00187 PYPKT00187 - Special PYPKT00187 - Special Ck Run 5-31-24 - Period 0.7906/14/2024 PYPKT00200 PYPKT00200 - Payroll PYPKT00200 - Payroll PE 6-9-24 - Period 5/27 573.09 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits201-165-50100-000 CalPERS - Continued 0.00 13,955.20 14,529.96 574.76 Ending Balance
10,769.42
Running Balance
4,027.724,549.305,064.095,599.316,129.596,651.597,142.127,341.057,726.858,132.418,505.028,911.639,282.949,660.86 10,037.2510,046.6710,403.7810,769.42
3,713.03
Running Balance
0.000.000.000.00
318.75588.75
3,590.533,713.03
0.20 Running Balance
0.000.000.000.00
1/10/2025 1:18:21 PM Page 8 of 13
07/31/2023 GLPKT00010 JN00400 Imported GL Balances08/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL Balances10/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 Payment Number: 75068
03/18/2024 APPKT00409 2/29/24 Financial Consulting Services 05138 - A M Peche & Associates LLC 122.50 Payment Number: 75540
201-165-51280-000 Miscellaneous Fees/Charges 0.00 0.20 0.20 0.00Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits 05138 - A M Peche & Associates LLC 318.75
Payment Number: 74761
01/11/2024 APPKT00223 12/27/23 Arbitrage Rebate for GO Bonds 05138 - A M Peche & Associates LLC 270.00 Payment Number: 75068
01/11/2024 APPKT00223 12/27/23-2 Consulting Services 05138 - A M Peche & Associates LLC 3,001.7807/31/2023 GLPKT00010 JN00400 Imported GL Balances08/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL Balances10/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 1311/30/2023 APPKT00120 11/30/23 Hourly services for Financial Consulting06/28/2024 PYPKT00205 PYPKT00205 - PE 6-23 PYPKT00205 - PE 6-23-24 - Period 6/10/2024 365.64201-165-51100-000 Contractual Obligations 0.00 3,713.03 3,713.03 0.00Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits05/03/2024 PYPKT00172 PYPKT00172 - PAYROL PYPKT00172 - PAYROLL PE 4-28-24 - Period 4 377.9205/17/2024 PYPKT00179 PYPKT00179 - Payroll PYPKT00179 - Payroll PE 5-12-24 - Period 4/2 376.3905/31/2024 PYPKT00185 PYPKT00185 - Payroll PYPKT00185 - Payroll PE 5-26-24 - Period 5/1 9.4206/14/2024 PYPKT00200 PYPKT00200 - Payroll PYPKT00200 - Payroll PE 6-9-24 - Period 5/27 357.1103/08/2024 PYPKT00127 PYPKT00127 - Payroll PYPKT00127 - Payroll PE 3-3-24 - Period 2/19 405.5603/22/2024 PYPKT00133 PYPKT00133 - Payroll PYPKT00133 - Payroll Period Ending 3-17-24 372.6104/05/2024 PYPKT00139 PYPKT00139 - Payroll PYPKT00139 - Payroll PE 3-31-24 - Period 3/1 406.6104/19/2024 PYPKT00158 PYPKT00158 - Payroll PYPKT00158 - Payroll PE 4-14-24 - Period 4/1 371.3101/12/2024 GLPKT00338 PR-128215 Payroll Cycle 1 (12/25/2023-01/07/2024) 522.0001/26/2024 GLPKT00363 PR-128327 Payroll Cycle 2 (01/08/2024-01/21/2024) 490.5302/09/2024 GLPKT00474 PR-128442 Payroll Cycle 3 (01/22/2024-02/04/2024) 198.9302/23/2024 PYPKT00093 PYPKT00093 - PE 2-18 PYPKT00093 - PE 2-18-24 - Period 2/5/2024 - 385.8011/03/2023 GLPKT00063 PR-127132 Payroll Cycle 22 (10/16/2023-10/29/2023) 521.5811/17/2023 GLPKT00133 PR-127299 Payroll Cycle 23 (10/30/2023-11/12/2023) 514.7912/01/2023 GLPKT00161 PR-127826 Payroll Cycle 24 (11/13/2023-11/26/2023) 535.2212/15/2023 GLPKT00229 PR-127915 Payroll Cycle 25 (11/27/2023-12/10/2023) 530.28201-165-50150-000 Medical Insurance - Continued 0.00 10,769.42 11,249.92 480.50Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits10/20/2023 GLPKT00044 PR-126549 Payroll Cycle 21 (10/02/2023-10/15/2023) 499.01 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits Ending Balance
0.20 Running Balance
0.20 1,000.00
Running Balance
1,000.001,000.001,000.001,000.00
429,962.76
Running Balance
0.00 72,795.3389,167.33
115,906.55116,769.05115,906.55116,769.05117,654.05137,735.05138,319.30143,074.30143,432.80144,387.80146,762.80153,039.80163,864.80164,227.30 Payment Number: 74929
01/09/2024 APPKT00341 0099459 CIP 2295-16 PREPARE & SEND CAD FILES TO 05766 - RICK ENGINEERING COMPANY 2295-16-58010 362.50 Payment Number: 75396
1/10/2025 1:18:21 PM Page 9 of 13
Payment Number: 74882
12/12/2023 APPKT00172 0098961 CIP 2295-17 STORM DRAIN DESIGN 05766 - RICK ENGINEERING COMPANY 2295-17-58010 6,277.00 Payment Number: 74936
12/18/2023 APPKT00172 84936 CIP 2295-16 INSPECTION AND CONTRACT AD 08627 - MNS Engineers, Inc. 2295-16-58010 10,825.00 Payment Number: 74899
12/05/2023 APPKT00154 84773-R1 CIP #2295-16 CM FOR MEASURE K-14 STREET 08627 - MNS Engineers, Inc. 2295-16-58010 955.00 Payment Number: 74875
12/08/2023 APPKT00154 0098866 CIP #2295-16 PROFESSIONAL SERVICES 05766 - RICK ENGINEERING COMPANY 2295-16-58010 2,375.00 Payment Number: 74899
11/19/2023 APPKT00154 0098602 CIP #2295-16 K14 STREET REPAIR 05766 - RICK ENGINEERING COMPANY 2295-16-58010 4,755.00 Payment Number: 74882
11/22/2023 APPKT00136 00419370 PROFESSIONAL SERVICES 09748 - Willdan 2295-15-58010 358.50 Payment Number: 74556
10/18/2023 APPKT00025 INV0000124 CIP 2295-17 PROFESSIONAL SERVICES 8/26-9 05766 - RICK ENGINEERING COMPANY 20,081.00 Payment Number: 74556
11/08/2023 APPKT00154 00419174 CIP #2295-15 MEASURE K14 LABOR COMPLIA 09748 - Willdan 2295-15-58010 584.2510/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 862.5010/13/2023 GLPKT00146 JN01860 Reverse Oct 1 thru Oct 13 2023 Fund 201 - s/ 862.5010/13/2023 GLPKT00146 JN01861 Activity for Oct 1 2023 -> Oct 13 2023 Fund 2 862.5010/18/2023 APPKT00025 INV0000123 CIP 2295-16 PROFESSIONAL SERVICES 8/26-9 05766 - RICK ENGINEERING COMPANY 885.0008/31/2023 GLPKT00011 JN00435 Imported GL Balances 72,795.3309/15/2023 APPKT00154 0097201 CIP #2295-17 PROFESSIONAL SERVICES 05766 - RICK ENGINEERING COMPANY 2295-17-58010 16,372.00 Payment Number: 74882
09/30/2023 GLPKT00012 JN00470 Imported GL Balances 26,739.22201-900-58010-000 PSE (Plans, Specifications, Engineering) 0.00 429,962.76 430,825.26 862.50Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits07/31/2023 GLPKT00010 JN00400 Imported GL Balances07/31/2023 GLPKT00010 JN00400 Imported GL Balances 1,000.0008/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL Balances10/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 1302/29/2024 GLPKT00495 JN02028 Fund 201 Deposit Adjustment 0.20201-165-51290-000 Office Supplies 0.00 1,000.00 1,000.00 0.00Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits201-165-51280-000 Miscellaneous Fees/Charges - Continued 0.00 0.20 0.20 0.00Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits Ending Balance
429,962.76
Running Balance
198,864.80199,236.80237,702.50245,874.50246,525.50249,187.75285,874.01326,124.81328,204.66331,629.66335,089.66390,770.36429,962.76 1,783,965.84
Running Balance
0.000.000.00
36,255.63
-3,290.54-2,915.89
39,546.17
11/17/2023 APPKT00107 439432 PLAN SETS FOR 2295-16 10166 - CRISP ENTERPRISES DBA CRISP IM 2295-16-58030 374.65 Payment Number: 74729
1/10/2025 1:18:21 PM Page 10 of 13
08/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL Balances10/10/2023 GLPKT00064 GL-127212-201 To reclass J.F. Will inv Proj2295-15 36,255.6310/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 Payment Number: 76433
201-900-58030-000 Construction 0.00 1,783,965.84 1,823,512.01 39,546.17Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits07/31/2023 GLPKT00010 JN00400 Imported GL Balances Payment Number: 76434
06/30/2024 APPKT00649 86448 2295-16 PROFESSIONAL SERVICES APRIL 202 08627 - MNS Engineers, Inc. 2295-16-58010 55,680.70 Payment Number: 76433
06/30/2024 APPKT00649 86646 2295-16 PROFESSIONAL SERVICES MAY 2024 08627 - MNS Engineers, Inc. 2295-16-58010 39,192.40 Payment Number: 75995
05/31/2024 APPKT00597 45118 CIP 2295-16 RECORD OF SURVEY 09806 - North Coast Engineering, Inc. 2295-16-58010 3,425.00 Payment Number: 76273
06/30/2024 APPKT00649 45190 2295-16 PROFESSIONAL SERVICES JUNE 2024 09806 - North Coast Engineering, Inc. 2295-16-58010 3,460.00 Payment Number: 75776
04/17/2024 APPKT00488 86113 CIP 2295-16 03/01/24 TO 03/31/24 SERVICES 08627 - MNS Engineers, Inc. 2295-16-58010 40,250.80 Payment Number: 75899
05/02/2024 APPKT00541 010648 REWORK DUE TO ASTOUND/LTEC DAMAGE 2 09438 - J.F. Will Company, Inc. 2295-16-58010 2,079.85 Payment Number: 75735
04/02/2024 APPKT00455 00419860 CIP 2295-15 MATERIAL TESTING THROUGH 0 09748 - Willdan 2295-15-58010 2,662.25 Payment Number: 75735
04/11/2024 APPKT00463 85669 CIP 2295-16 PROFESSIONAL SERVICES FEBRU 08627 - MNS Engineers, Inc. 2295-16-58010 36,686.26 Payment Number: 75716
02/14/2024 APPKT00341 0099995 CIP 2295-16 REVISION TO DESIGN, PREPARE 05766 - RICK ENGINEERING COMPANY 2295-17-58010 8,172.00 Payment Number: 75396
02/23/2024 APPKT00455 00419729 CIP 2295-15 POST CONSTRUCTION SERVICES 09748 - Willdan 2295-15-58010 651.00 Payment Number: 76063
01/26/2024 APPKT00341 00419602 CIP 2295-15 CONSTRUCTION MANAGEMENT 09748 - Willdan 2295-15-58010 372.00 Payment Number: 75407
02/12/2024 APPKT00455 85402 2295-16 PROFESSIONAL SERVICES JAN 2024 08627 - MNS Engineers, Inc. 2295-16-58010 38,465.70201-900-58010-000 PSE (Plans, Specifications, Engineering) - Continued 0.00 429,962.76 430,825.26 862.50Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits01/22/2024 APPKT00549 85271 CIP 2295-16 CONSTRUCTION SERVICES 12/1 08627 - MNS Engineers, Inc. 2295-16-58010 34,637.50 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits Ending Balance
1,783,965.84
Running Balance
109,901.82372,462.06410,462.06635,036.02964,461.21
1,247,720.541,714,041.351,783,965.84
0.00 Running Balance
0.000.000.000.00
0.00 2,424,471.30 2,472,596.67 48,125.37 2,424,471.30
Grand Totals: 0.00 2,173,788.52 2,585,531.66 411,743.14 2,173,788.52 1/10/2025 1:18:21 PM Page 11 of 13
07/31/2023 GLPKT00010 JN00400 Imported GL Balances08/31/2023 GLPKT00011 JN00435 Imported GL Balances09/30/2023 GLPKT00012 JN00470 Imported GL Balances10/13/2023 GLPKT00014 JN01750 Activity for Oct 1-Oct 13 Total Expense:
06/30/2024 APPKT00649 010678 CIP 2295-16 CONSTRUCTION 09438 - J.F. Will Company, Inc. 2295-16-58030 69,924.49 Payment Number: 76425
201-900-58070-000 Contract & Construction Management 0.00 0.00 0.00 0.00Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits05/01/2024 APPKT00556 010643 CIP 2295-16 CONSTRUCTION COSTS 09438 - J.F. Will Company, Inc. 2295-16-58030 283,259.33 Payment Number: 76098
06/30/2024 APPKT00635 010428 CIP 2295-15 MAY 2023 INVOICE 09438 - J.F. Will Company, Inc. 2295-15-58030 466,320.81 Payment Number: 76378
02/29/2024 APPKT00422 0106027 CIP 2295-16 & CIP 2274 CONSTRUCTION WO 09438 - J.F. Will Company, Inc. 2295-16-58030 224,573.96 Payment Number: 75618
03/31/2024 APPKT00477 010634 CONSTRUCTION COSTS CIP 2295-16 09438 - J.F. Will Company, Inc. 2295-16-58030 329,425.19 Payment Number: 75831Payment Number: 75178
01/31/2024 APPKT00345 0106017 CIP 2295-16 & CIP 2274 SERVICES RENDERED 09438 - J.F. Will Company, Inc. 2295-16-58030 262,560.24 Payment Number: 75376
01/31/2024 GLPKT01018 JN02253 JE to reclass JF Will inv 0106017 2295-16-58030 38,000.00201-900-58030-000 Construction - Continued 0.00 1,783,965.84 1,823,512.01 39,546.17Post Date Packet Number Source Transaction Description Vendor Project Account Debits Credits01/18/2024 APPKT00270 010599 CIP 2295-16 MEASURE K-14 STREET REHAB A 09438 - J.F. Will Company, Inc. 2295-16-58030 112,817.71 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Name Beginning Balance Total Activity Total Debits Total Credits Account Ending Balance
-38,000.00
-211,882.78
-800.00
-250,682.78
0.00 161,828.51
426.13
9,653.752,257.965,023.00
298.87
13,955.20
1,616.63
10,769.42
3,713.03
0.20 1,000.00
429,962.76
1,783,965.84
0.00 2,424,471.302,173,788.52
Total Expense: 0.00 2,424,471.30 2,472,596.67 48,125.37 Grand Totals: 0.00 2,173,788.52 2,585,531.66 411,743.14 1/10/2025 1:18:21 PM Page 12 of 13
201-900-58010-000 PSE (Plans, Specifications, Engineering) 0.00 429,962.76 430,825.26 862.50201-900-58030-000 Construction 0.00 1,783,965.84 1,823,512.01 39,546.17201-900-58070-000 Contract & Construction Management 0.00 0.00 0.00 0.00201-165-51100-000 Contractual Obligations 0.00 3,713.03 3,713.03 0.00201-165-51280-000 Miscellaneous Fees/Charges 0.00 0.20 0.20 0.00201-165-51290-000 Office Supplies 0.00 1,000.00 1,000.00 0.00201-165-50100-000 CalPERS 0.00 13,955.20 14,529.96 574.76201-165-50110-000 Deferred Compensation 0.00 1,616.63 1,740.87 124.24201-165-50150-000 Medical Insurance 0.00 10,769.42 11,249.92 480.50201-165-50070-000 Medicare 0.00 2,257.96 2,344.32 86.36201-165-50080-000 Workers Compensation 0.00 5,023.00 5,023.00 0.00201-165-50090-000 Long Term Disability 0.00 298.87 310.96 12.09201-165-50010-000 Salaries: Full-Time 0.00 161,828.51 167,887.10 6,058.59201-165-50050-000 Overtime 0.00 426.13 437.23 11.10201-165-50060-000 Social Security 0.00 9,653.75 10,022.81 369.06201-000-45070-000 Miscellaneous 0.00 -800.00 5,700.00 6,500.00 Total Revenue: 0.00 -250,682.78 112,934.99 363,617.77
Expense
201-000-51250-000 Legal Services 0.00 0.00 0.00 0.00
Name Beginning Balance Total Activity Total Debits Total Credits Revenue
201-000-40000-000 Transfers In 0.00 -38,000.00 38,000.00 76,000.00201-000-43000-000 Interest Income 0.00 -211,882.78 69,234.99 281,117.77 Detail Report Date Range: 07/01/2023 - 06/30/2024
Account Summary
201 - Street Rehabilitation and Repair Fu 0.00 2,173,788.52 2,585,531.66 411,743.14 2,173,788.52
0.00 2,173,788.52 2,585,531.66 411,743.14 2,173,788.52 Grand Total:
1/10/2025 1:18:21 PM Page 13 of 13
Detail Report Date Range: 07/01/2023 - 06/30/2024
Fund Summary
Fund Beginning Balance Total Activity Total Debits Total Credits Ending Balance Account Total Credits Ending Balance
76,000.00 -38,000.00
281,117.77 -211,882.78
6,500.00 -800.00
363,617.77 -250,682.78
0.00 0.00
6,058.59 161,828.51
11.10 426.13
369.06 9,653.75
86.36 2,257.96
0.00 5,023.00
12.09 298.87
574.76 13,955.20124.24 1,616.63480.50 10,769.42
0.00 3,713.030.00 0.200.00 1,000.00
862.50 429,962.76
39,546.17 1,783,965.84
0.00 0.00
48,125.37 2,424,471.30
411,743.14 2,173,788.52
1/10/2025 1:19:02 PM Page 1 of 2
Total Expense: 0.00 2,424,471.30 2,472,596.67
Grand Totals: 0.00 2,173,788.52 2,585,531.66
201-900-58030-000 Construction 0.00 1,783,965.84 1,823,512.01201-900-58070-000 Contract & Construction Management 0.00 0.00 0.00201-165-51290-000 Office Supplies 0.00 1,000.00 1,000.00201-900-58010-000 PSE (Plans, Specifications, Engineering) 0.00 429,962.76 430,825.26201-165-51100-000 Contractual Obligations 0.00 3,713.03 3,713.03201-165-51280-000 Miscellaneous Fees/Charges 0.00 0.20 0.20201-165-50110-000 Deferred Compensation 0.00 1,616.63 1,740.87201-165-50150-000 Medical Insurance 0.00 10,769.42 11,249.92201-165-50090-000 Long Term Disability 0.00 298.87 310.96201-165-50100-000 CalPERS 0.00 13,955.20 14,529.96201-165-50070-000 Medicare 0.00 2,257.96 2,344.32201-165-50080-000 Workers Compensation 0.00 5,023.00 5,023.00201-165-50050-000 Overtime 0.00 426.13 437.23201-165-50060-000 Social Security 0.00 9,653.75 10,022.81 Expense
201-000-51250-000 Legal Services 0.00 0.00 0.00201-165-50010-000 Salaries: Full-Time 0.00 161,828.51 167,887.10201-000-45070-000 Miscellaneous 0.00 -800.00 5,700.00 Total Revenue: 0.00 -250,682.78 112,934.99
Revenue
201-000-40000-000 Transfers In 0.00 -38,000.00 38,000.00201-000-43000-000 Interest Income 0.00 -211,882.78 69,234.99 Detail Report
City of Grover Beach, CA Account Summary
Date Range: 07/01/2023 - 06/30/2024
Name Beginning Balance Total Activity Total Debits
1/10/2025 1:19:02 PM Page 2 of 2
201 - Street Rehabilitation and Repair Fu 0.00 2,173,788.52 2,585,531.66 411,743.14 2,173,788.52
0.00 2,173,788.52 2,585,531.66 411,743.14 2,173,788.52 Grand Total:
Detail Report Date Range: 07/01/2023 - 06/30/2024
Fund Summary
Fund Beginning Balance Total Activity Total Debits Total Credits Ending Balance Agenda Item No. 9
$3.6
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: January 27, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: Proposition 218 Public Hearing for South County Sanitary Service Rate Increase; Resolution to Amend the Master Fee Schedule; and Approval of Amendment Two to the Franchise Agreement
Incorporating the Updated Rate Methodology
RECOMMENDATION
1) Conduct a Proposition 218 public hearing and determine the official number of written protests received on the proposed solid-waste rate structure; and if the number of valid protest letters are below 50% plus one of the number of property owners or customers authorized to submit protest, adopt the Resolution amending the Master Fee Schedule for solid-waste fees effective January 1, 2025; and
2) Authorize Amendment Two of the Franchise Agreement between the City and South County Sanitary Services.
BACKGROUND
Since 1997, the City has a Franchise Agreement with South County Sanitary Service (SCSS), a subsidiary of Waste Connections, for collection, diversion and disposal of solid waste in the City.
Through the terms of the Franchise Agreement, SCSS is entitled to compensation for its “labor, equipment, materials and supplies, taxes, insurance, bonds, overhead, transfer and transport, processing, division, disposal, provide and all other things necessary to perform all of the services required by [the] Agreement.” This compensation is received through the rates and charges paid by the City’s customers, which are presented to the City through cost-based rate adjustment applications and reviewed by the City Council through the Proposition 218 process.
The City joined the other cities in San Luis Obispo County to contract with the consulting firm R3 to conduct a detailed review of the 2025 cost-based rate applications submitted by SCSS. After R3’s review of SCSS’s rate increase application, the cities negotiated adjustments for new regional service enhancements and application of a new rate adjustment methodology, The new adjustment methodology is intended to prevent large year-over-year increases through revenue rebalancing. The recommended 2025 rate adjustment for the City is 5.02% beginning January 1, 2025, with CPI adjustments beginning January 1, 2026.
The Council received a presentation on this requested rate adjustment from SCSS on November 12, 2024 and approved the Proposition 218 noticing process which was carried out by SCSC on behalf of the City in preparation for the public hearing on January 27, 2025.
Staff Report: South County Sanitary Service Rate Request and Proposition 218 Noticing Page 2 January 27, 2025
Regional Service Enhancements
As part of the proposed service level agreement changes, residents can expect several enhancements to service offered to the City of Grover Beach. • Customer Assistance Program (CAP): 20% low-income discount provided to residential customers using 32-gallon cart service, using existing jurisdictional practices on lowincome relief for their offered utility type services with evidence of qualifying financial hardship. In the City’s case, verification would be based on existing enrollment in lowincome utility subsidy programs including the City’s CAP and PG&E CARE program. • Free Bulky Waste Collections: Collection of a bulky waste item twice annually from residential accounts at no cost via bi-annual clean-up weeks. • Annual Cart Exchange: Once annual exchange of a residential solid waste, recycling, or organics cart per customer account.
New Rate Adjustment Methodology
Pending City Council approval, the new methodology recommended by R3, will replace the 1994 Rate Manual and will regulate annual rate adjustments for the City’s solid waste rates starting in 2025, as shown in Attachment 1. The new methodology fulfills key objectives including rate stability, predictability, fairness, transparency, ease of administration, and cost-effectiveness.
Additionally, the new methodology can be applied on a regional scale and is recommended alternative to the 1994 Rate Manual.
The proposed adjustments will increase the rates for customers within Grover Beach by 5.02% relative to current rates. This approximate 5% increase is a similar increase as proposed in both Arroyo Grande and Pismo Beach. For the 32-Gallon Cart, Grover Beach has the fourth lowest monthly cost within the region. For additional regional comparison, please see Attachment 2 providing monthly rate comparisons for jurisdictions within the region by size of trash bin. The new methodology for rate adjustments have been incorporated into the Franchise Agreement between the City and South County Sanitary Services and are provided as Amendment 2, shown in Attachment 5, Exhibit A, for Council’s authorization.
Proposition 218 Hearing
Pursuant to Proposition 218, any owner or customer of record that is required to pay the subject fees of a parcel subject to the proposed rates may submit a written protest the proposed rate revision. Attachment 3 includes a copy of the notice which informed the registered property owners along with customers about the proposed rate increases and the January 27th public hearing along with how to submit a protest. A total of 5,710 notices were mailed and included a link to a Spanish translation of the notice. SCSS also conducted two public forums to discuss the rate increases with one at Ramona Park Community Center on December 18 and another at the Trouville Community Center on January 20.
A written protest must contain the street address or Assessor’s Parcel Number (APN) for the parcel(s) with respect to which the protest is made. The protest must also be signed by the registered owner or customer who pays the fees. Protests are required to be mailed or handdelivered to the City’s offices.
Staff Report: South County Sanitary Service Rate Request and Proposition 218 Noticing Page 3 January 27, 2025
Only one protest per address can be accepted and no protest will be accepted or valid if submitted after the close of the public protest hearing. At the end of the public hearing, the City Clerk will tally and report the qualifying written protests, and the Council will then certify whether the written protests opposing the increases meet the 50% plus 1 threshold required to constitute a majority protest. If a majority protest does not exist, it is recommended that the Council adopt the Resolution shown in Attachment 4 to amend the Master Fee Schedule reflecting solid waste fee schedule. At time of report publication, the City has receive nine protests.
FISCAL IMPACT
Upon approval, the updated rate structure will result in an additional $14,000 per year in franchise fees collected by the City from SCSS.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a Proposition 218 public hearing and determine the official number of written protests received on the proposed solid-waste rate structure; and if the number of valid protest letters are below 50% plus one of the number of property owners or customers authorized to submit protest, adopt the Resolution amending the Master Fee Schedule for solid-waste fees effective January 1, 2025; and
2. Adopt the Resolution Authorizing the execution of Amendment Two to the Franchise Agreement between the City and South County Sanitary Services; or
3. Provide alternate direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. A Proposition 218 Hearing Notice was mailed on December 9, 2024, to all customers and registered property owners that receive solid waste services, including a link providing a Spanish translation of the notice. Information regarding the proposed rates and a link to the online copy of the Proposition 218 notice, as well as other related information, was posted on the South County Sanitary Services website. A Public Hearing Notice was also published January 16, 2025.
Attachments
1. New Solid Waste Rate Adjustment Methodology
2. Charts for Regional Comparison
3. Proposition 218 Notice
4. Resolution to Amend the Master Fee Schedule
5. Resolution to Authorize the City Manager to Execute Amendment Two to the Franchise Agreement with SCSS
Annual Rate Adjustment Methodology