AGENDA
GROVER BEACH CITY COUNCIL
GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET
GROVER BEACH, CALIFORNIA
TUESDAY, FEBRUARY 11, 2025, 6:00 PM
Next Resolution No .25-07
Next Ordinance No. 25-01
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, please contact the City Clerk's Office (805-473-4567) at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting.
CALL TO ORDER
CALL TO ORDER
FLAG SALUTE
ROLL CALL Council Members Kathy McCorry-Driscoll, Jules Tuggle, Clint Weirick, Mayor Pro Tem Robert Robert, and Mayor Kassi Dee
CLOSED SESSION ANNOUNCEMENTS
On Monday, January 27, 2025 at 10:09 p.m., the Council met in Closed Session regarding the following items:
A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Government Code section 54956.9
Two (s) Case.
Closed Session Announcements: At 10:52 p.m., Mayor Dee reconvened the meeting in open session with all Council Members present and announced that no reportable action was taken during Closed Session.
AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of the day. The Council should by motion adopt the agenda as presented or as revised.
CEREMONIAL CALENDAR
1. Introduction of New City Employees
Meetings can be viewed on cable Channel 20 in Grover Beach and are live streamed on www.slospan.org. Members of the public may provide public comment via the phone during the meeting by calling (805) 321-6639 (the phone line will open just prior to the start of the meeting at 6:00 PM). Written public comments can be submitted via email to [email protected]. To ensure distribution to the City Council, please submit comments not later than 12:00 p.m. the day of the meeting. All correspondence will be distributed to the City Council, posted on the City’s website, and be made part of the official public record of the meeting. Please note, comments will not be read into the record.
Agenda: Grover Beach City Council Meeting Page 2
Tuesday, February 11, 2025
2. Introduction of Five Cities Fire Authority New Captains and Firefighters
PRESENTATIONS
None
PUBLIC COMMUNICATIONS
During this time, the Council will allow up to 15 minutes for Public Communication with additional communication, if necessary, allowed after the Regular Business Items. Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on, or discuss, items not on the agenda.
CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. Recommendations for each item are noted in parentheses. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Items withdrawn from the Consent Agenda will be heard after the rest of the Consent Agenda is approved.
3. Minutes of the City Council Meeting on Monday, January 27, 2024 – City Clerk Sims (Recommended Action: Approve the minutes as submitted or revised.)
VOICE VOTE
4. Appointment to the Parks, Recreation, and Beautification Commission – City Clerk Sims (Recommended Action: Approve and confirm Mayor Dee’s recommendations to appoint Allysa Rueschenberg to the PRBC for a term ending May 31, 2029 and to hold Jeff Bohrer as an alternate for any future vacancy prior to the next term expiration; and adopt the Resolution to Appoint Allysa Rueschenberg to a four-year term of office, scheduled to expire on May 31, 2029.)
PUBLIC HEARING
5. Public Hearing Regarding the Closeout of State Community Development Block Grant Coronavirus (CDBG-CV) Contract 20-CDBG-CV2-3-00077 – Community Development Director Martin and Associate Planner Reese
(Recommended Action: Receive a report summarizing the accomplishments performed under the State Community Development Block Grant Coronavirus (CDBG-CV) Agreement 20-CDBGCV2-3-00077; conduct a public hearing to solicit citizen input regarding expenditures and accomplishments of the funding received under the contract; and direct staff to proceed with submitting required documents for closeout to the State.)
REGULAR BUSINESS
6. FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policy Update – Administrative Services Director Szamet
(Recommended Action: Receive FY 2024-25 Mid-Year Budget Review including the update General Fund Forecast; approve mid-year budget appropriation changes; and approve budget policy amendments.)
Agenda: Grover Beach City Council Meeting Page 3
Tuesday, February 11, 2025
7. Brown Act Overview – City Attorney Lomeli
(Recommended Action: Receive on overview on Brown Act requirements related to City governance.)
CONTINUATION OF PUBLIC COMMENT PERIOD
This continuation period is exclusively reserved for individuals who: 1) submitted a speaker slip during the initial public comment period and 2) were unable to speak due to time constraints during that period.
Individuals who already addressed the Council during the initial public comment period are not permitted to speak during this continuation period. Each speaker will be limited to three minutes. As with the initial period, the Council will listen to all communications but cannot act on, or discuss, items not on the agenda in compliance with the Brown Act.
COUNCIL COMMITTEE REPORTS
This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating.
SLO Council of Governments/SLO Regional Transit Authority Kassi Dee (Alt: Robert Robert) (SLOCOG / SLORTA)
South County Transit Committee Kassi Dee (Alt: Robert Robert) South SLO County Sanitation District (SSLOCSD) Kassi Dee (Alt: Clint Weirick) Central Coast Community Energy (3CE) Kathy McCorry-Driscoll (Alt: N/A) REACH Kathy McCorry-Driscoll (Alt: Robert Robert)
Visit SLO CAL Advisory Committee Kathy McCorry-Driscoll (Alt: Robert Robert) Air Pollution Control District (APCD) Robert Robert (Alt: Kassi Dee) Integrated Waste Management Authority (IWMA) Robert Robert (Alt: Kathy McCorry-Driscoll) Homeless Services Oversight Council (HSOC) Jules Tuggle (Alt: Clint Weirick) SLO County Water Resources Advisory Committee (WRAC) Jules Tuggle (Alt: Robert Robert) South County Chambers of Commerce Jules Tuggle (Alt: Robert Robert) Zone Three Advisory Committee Jules Tuggle (Alt: Robert Robert) California Joint Powers Insurance Authority (CJPIA) Clint Weirick (Alt: Kathy McCorry-Driscoll) Community Action Partnership of San Luis Obispo County Clint Weirick (Alt: Kassi Dee) (CAPSLO)
Five Cities Fire Joint Powers Authority Clint Weirick and Kassi Dee
COUNCIL COMMUNICATIONS
This item gives individual Council Members the opportunity to seek consensus for scheduling a specific item on a future agenda, authorizing staff time to provide background information and prepare a staff report for a future agenda, or to comment on Council business, City operations, projects or other items of community interest.
CITY MANAGER’S REPORTS AND COMMENTS
CITY ATTORNEY’S REPORTS AND COMMENTS
Agenda: Grover Beach City Council Meeting Page 4
Tuesday, February 11, 2025
CLOSED SESSION
It is the intention of the City Council to meet in Closed Session concerning the following item:
A. Public Employee Performance Evaluation - Government Code Section 54957 Title: City Manager
ADJOURNMENT
* * * * *
Per Resolution No. 17-21, the public portion of City Council meetings will be scheduled to start at 6:00 p.m. and conclude no later than 11:00 p.m. Any open session items remaining on the agenda at 11:00 p.m. that have not been discussed or considered by the City Council will be continued to an adjourned meeting of the City Council (scheduled before the next regular meeting). However, the City Council may choose to continue the meeting past 11:00 p.m. upon a proper motion and a 4/5ths vote in favor of such an action.
* * * * *
Staff reports or other written materials relating to each item of business referred to on this agenda are available from the City website www.groverbeach.org and on file in the City Clerk’s Office. A public counter copy is available for public inspection and reproduction during normal business hours at City Hall, 154 South 8th Street, Grover Beach, CA. Related materials submitted after distribution of the agenda packet are available in the City Clerk's Office during normal business hours. If you have questions regarding any agenda item, please contact the appropriate City Department. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council and distributed subsequent to distribution of the agenda packet will be made available for public inspection in the City Clerk’s Office during normal business hours. * * * * *
Note: This agenda was prepared and posted pursuant to Government Code Section 54954.2. This agenda is subject to amendment up to 72 hours prior to the date and time set for the meeting. Please refer to the agenda posted at City Hall for any revisions or call the City Clerk’s Office at (805) 473-4567 for more information.
* * * * *
The agenda and staff reports are also available on the City’s website: www.groverbeach.org
CITY OF GROVER BEACH
POLICIES AND PROCEDURES FOR CONDUCT AND DECORUM AT COUNCIL MEETINGS (Pursuant to Resolution No. 07-44, adopted 04-16-07, revised 02-18-2020) The City Council and staff welcomes and encourages civic participation and debate on issues. The Council values the public’s opinion and in every Council meeting invite and encourages the public to address the Council on any matter of interest. The Council adopted these policies and procedures for appropriate conduct and decorum at Council meetings and establish guidance for public participation during Council meetings.
These policies will foster and provide greater clarity to preserve the intent of open government and maintain a positive environment for public input and City Council decision-making.
1.0 DECORUM AND ORDER – IN GENERAL
1.1 The presiding officer is responsible for the maintenance of order and decorum at all times.
1.2 The presiding officer shall determine all points of order subject to the right of any Council member to appeal to the City Council by majority vote. If any appeal is taken, the question shall be “Shall the decision of the presiding officer be sustained” in which event a majority vote of the Council shall govern and conclusively determine such question of order.
1.3 All Council members, staff members and members of the public should speak respectfully and avoid the use of profanity, vulgarity and slanderous comments. Recognizing that the First Amendment precludes the City Council from prohibiting speakers from speaking based upon the content of their speech, the presiding officer shall use their best efforts, short of enforcement action, to remind and encourage all participating in the meeting to keep their speech respectful towards others and within bounds appropriate for children and persons of sensitivity toward course language as a courtesy to others present or otherwise viewing Council meetings.
2.0 DECORUM AND ORDER – COUNCIL MEMBERS
2.1 Manner of Speaking.
Any Council member desiring to speak shall first address the presiding officer. Upon recognition by the presiding officer, the Council member shall speak only to the question under debate.
U2.1(a) Questioning Staff.
A Council member desiring to question the staff should address his question to the City Manager, or, in appropriate cases, the City Clerk or City Attorney, who shall be entitled either to answer the inquiry or to designate some staff member for that purpose. Such a designation may be made at the time of any staff presentation or on the agenda listing for the item.
U2.1(b) Interruptions.
Once recognized, a Council member shall not be interrupted while speaking unless called to order by the presiding officer; unless a point of order is raised by another Council member, or unless the speaker chooses to yield to questions from another Council member.
3.0 DECORUM AND ORDER – STAFF
3.1 City Manager Responsibilities
The City Manager is responsible for ensuring that members of the administrative staff observe the rules of decorum and order set forth in this Policy.
3.2 AAddressing the City Council
Any administrative staff member desiring to address the City Council or members of the public shall first be recognized by the presiding officer. All remarks shall be addressed to the presiding officer and not to any individual Council Member or member of the public. Administrative staff members shall accord the utmost courtesy to the City Council, other administrative staff members and the public.
4.0 DECORUM AND ORDER – MEMBERS OF THE PUBLIC
4.1 AAddressing the City Council
Any member of the public desiring to address the City Council or members of the public shall first be recognized by the presiding officer at the appropriate place on the agenda. All remarks shall be addressed to the presiding officer and not to any individual Council Member, City Manager, City Attorney or member of the administrative staff or member of the public.
4.2 Time Limitation for Addressing the City Council
Public comment when addressing the City Council shall be generally limited to three (3) minutes per speaker. Depending on the extent of the agenda and the number of persons desiring to speak on an issue, the presiding officer may, at the beginning of the hearing, set a different time limit for each speaker. Any person may speak for a longer period of time upon approval from the presiding officer, when deemed necessary, for instance when a person is speaking on behalf of a group or has a graphic or slide presentation requiring more time.
4.3 Failure to Yield, Disruptions
Any person who refuses to relinquish the floor after their allotted time or while attending the City Council meeting engages in conduct or speech which disrupts the business of the meeting shall be brought to order and/or removed from the room if the sergeant-at-arms is so directed by the presiding officer.
Disruptive remarks from the audience, stamping of feet, clapping, whistles, yells and similar demonstrations shall not be permitted by the presiding officer who may direct the sergeant-at-arms to remove such offenders from the room.
4.4 Prosecution
Aggravated cases shall be prosecuted on appropriate complaint signed by the presiding officer.
5.0 ENFORCEMENT OF DECORUM
5.1 The Chief of Police or his designee shall be the ex-officio sergeant-at-arms of the City Council. The sergeant-at-arms shall carry out all legal and valid orders and instructions given by the presiding officer for the purpose of maintaining order and decorum in the Council Chamber. Upon instructions from the presiding officer, it shall be the duty of the sergeant-at-arms to remove any disorderly person from the Council Chambers or place the disorderly person under arrest or both.
5.2 As set forth in Government Code Section 54957.9, in the event that any meeting is willfully interrupted by a person or group of persons so as to render the orderly conduct of such meeting unfeasible or impedes the ability of the Council to hold the meeting, and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the presiding officer may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session. Duly accredited representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this Section. Nothing in this Section shall prohibit the City Council from establishing a procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting.
No Documents for this Agenda Item
Introduction of New City Employees
Agenda Item No. 1
Introduction of New City Employees
(CC Mtg 2/11/2025)
No Documents for this Agenda Item
Introduction of Five Cities Fire Authority New
Captains & Firefighters
Agenda Item No. 2
Introduction of New FCFA Employees
(CC Mtg 2/11/2025)
MINUTES
CITY COUNCIL MEETING
MONDAY, JANUARY 27, 2025
CALL TO ORDER Mayor Dee called the meeting to order at 6:00 p.m. in the City Hall Council Chamber, 154 South Eighth Street, Grover Beach, California.
FLAG SALUTE The flag salute was led by Serena Ponomaroff a 6-year-old, 1st grade student at Fairgrove Elementary School.
ROLL CALL
City Council: Council Members Kathy McCorry-Driscoll, Jules Tuggle, Clint Weirick, Mayor Pro Tem Robert Robert and Mayor Kassi Dee were present.
City Staff: City Manager Matthew Bronson, Assistant City Manager Kristin Eriksson, City Attorney Rob Lomeli, City Clerk Wendi Sims, Police Chief Jim Munro, Public Works Director/City Engineer Greg Ray, Administrative Services Director Nick Szamet, Community Development Director Megan Martin, and Community Services Supervisor Larry Kim were also present.
CLOSED SESSION ANNOUNCEMENTS
On Monday, January 13, 2025 at 9:33 p.m., the Council met in Closed Session regarding the following items:
A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Government Code section 54956.9 One (1) Case.
B. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Name of Case: Grover H2O, Debra Peterson, and Brenda Auer v. City of Grover Beach, et al. San Luis Obispo Superior Court Case 24CV-0264. Government Code section 54956.9(d)(1).
Closed Session Announcements: At 10:13 p.m., Mayor Dee reconvened the meeting in open session with all Council Members present and announced that no reportable action was taken during Closed Session.
AGENDA REVIEW
Action: Upon unanimous consensus, the Council adopted the agenda as presented.
CEREMONIAL CALENDAR
1. Police Department Lifesaving Medal Presentation (Grand Fire) – Presented by Police Chief Munro.
2. Introduction of New Employees – Presented by City Manager Bronson received by Bill Haas, Public Works Superintendent.
Agenda Item No. 3
Minutes: City Council Meeting Page 2
Monday, January 27, 2025
PRESENTATIONS
3. Holiday of Lights Winners – Presented by Community Services Supervisor Kim.
PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council, but were not listed on the agenda.
• Alan Thompson
• Jonathon Reynolds
• Ron Arnoldsen
• Jeff Lee
• Randall Myrick
• Deanna Medina-Galvan
No additional public comments were received at this time and the Mayor closed the public comment portion of the meeting.
CONSENT AGENDA
Prior to consideration of the Consent Agenda, Mayor Dee opened public comment. • Dave Ekbom
• Ron Arnoldsen
• Jonathan Reynolds
• Loren Westphal
• Pamela Storton
• Jeff Lee
• William Rea
There being no additional public comments received, Mayor Dee closed public comment.
It was motioned by Council Member Weirick and seconded by Council Member Tuggle to approve Consent Agenda Item No.’s 4, 5, 6, 7, and 8 as recommended. The motion carried on the following roll call vote:
AYES: Council Members – Weirick, Tuggle, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – McCorry-Driscoll.
ABSENT: Council Members – None.
ABSTAIN: Council Members – None.
4. Treasurer’s Reports for the Period November 1, through November 30, 2024 and December 1, through December 31,2024
Action: Approved the Treasure’s Reports as submitted.
5. Treasurer’s Reports for the Streets Bond Account - $10,000,000 for the Period November 1, through November 30, 2024 and December 1, through December 31, 2024
Minutes: City Council Meeting Page 3
Monday, January 27, 2025
Action: Approved the Treasure’s Reports as submitted.
6. Minutes of the City Council Meeting on Monday, January 13, 2024 Action: Approved the minutes as submitted.
7. FY 2023-24 Annual Comprehensive Financial Report
Action: Received and filed the FY 2023-24 Annual Comprehensive Financial Report.
8. FY 2023-24 Citizen Oversight Committee Report for City Revenue Measures including Measure K-14 Street Repair Bonds, Measure X-06 Transaction and Use Tax, and Measure F-20 Transaction and Use Tax
Action: Received and filed the FY 2023-24 Citizen Oversight Committee Report for City Revenue Measures.
PUBLIC HEARING
9. 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 Incorporation the Updated Rate Methodology Mayor Dee read the title to the foregoing item and deferred to staff for a report.
Administrative Services Director Szamet introduced Jordan Muratsuchi Consultant with R3 Consulting Group, who presented a PowerPoint presentation reviewing Proposition 218 for South County Sanitary Service Rate Increase and the amendments to the Master Fee Schedule.
Mayor Dee opened the public hearing and invited public comment on this matter. • Ron Arnoldsen
• Jonathon Reynolds
• Bill Newell
No additional comments were received at this time and the Mayor closed the public hearing.
1st Action: It was motioned by Mayor Pro Tem Robert and seconded by Council Member McCorry-Driscoll conducted a Proposition 218 public hearing and determined 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, adopted Resolution No. 25-04 amending the Master Fee Schedule for solidwaste fees effective January 1, 2025. The motion carried on the following roll call vote:
AYES: Council Members – McCorry-Driscoll, Weirick, Tuggle, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None.
ABSENT: Council Members – None.
ABSTAIN: Council Members – None.
Minutes: City Council Meeting Page 4
Monday, January 27, 2025
Resolution No. 25-04: A Resolution of the City Council of the City of Grover Beach, California, Establishing Integrated Solid Waste Rates for January 1, 2025, and Each Subsequent January 1st through 2029.
2nd Action: It was motioned by Council Member Tuggle and seconded by Council Member McCorry-Driscoll to authorize and adopt Resolution No. 25-05 approving Amendment Two of the Franchise Agreement between the City and South County Sanitary Services. The motion carried on the following roll call vote:
AYES: Council Members – McCorry-Driscoll, Weirick, Tuggle, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None.
ABSENT: Council Members – None.
ABSTAIN: Council Members – None.
Resolution No. 25-05: A Resolution of the City Council of the City of Grover Beach, California, Approving the Second Amendment to the Amended and Restated Solid Waste Collection Franchise Agreement with South County Sanitary Service, Inc.
RECESS at 7:24 p.m., Mayor Dee requested a break, upon consensus of the City Council the meeting was recessed.
RECONVENED: At 7:30 p.m., the meeting was reconvened with all members of Council present.
REGULAR BUSINESS:
At 7:31 p.m., Council Member Weirick recused himself from the dais due to a possible conflict of interest and left the Council Chambers.
10. State Legislation Update and 2025 Legislative Platform Mayor Dee read the title of the foregoing item and deferred to staff for a report.
Assistant City Manager Eriksson gave a brief presentation discussing the recently adopted State legislation.
Mayor Dee invited public comment on this matter.
• James Worthly
• Jonathon Reynolds
• Pamela Storton
• Debbie Peterson
No additional comments were received at this time and the Mayor closed public comment.
Minutes: City Council Meeting Page 5
Monday, January 27, 2025
Action: It was motioned by Council Member McCorry-Driscoll and seconded by Mayor Pro Tem Robert, to receive a presentation on recently adopted State legislation and approve the 2025 City of Grover Beach Legislative Platform. The motion carried on the following voice vote:
AYES: Council Members – McCorry-Driscoll, Tuggle, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None.
ABSENT: Council Members – None.
ABSTAIN: Council Members – None.
RECUSED: Council Members – Weirick
At 7:58 p.m., Council Member Weirick returned to the Council Chambers.
11. Street Repair Update
Mayor Dee read the title of the foregoing item and deferred to staff for a report.
City Engineer/Public Works Director Ray presented the PowerPoint presentation on the street repair update.
Mayor Dee invited public comment on this matter.
• Cathryn Sells
• David Swift
• Loren Westphal
• Randall Myrick
• Jonathon Reynolds
• Ron Arnoldsen
• Pamela Storton
• William Rea
No further comments were received at this time and the Mayor closed public comment.
Action: Council received an update on the status of street maintenance and gave direction to City Staff to review and continue work and making minor/stop gap repairs on K-14 Streets, enforce moving the vehicles and review the ownership of the private streets south of Farroll Road.
12. West Grand Avenue Business Grant Program
Mayor Dee read the title of the foregoing item and deferred to staff for a report.
City Manager Bronson presented an overview of a potential grant program for businesses in the West Grand Avenue streetscape area.
Mayor Dee invited public comment on this matter.
Minutes: City Council Meeting Page 6
Monday, January 27, 2025
• Debbie Peterson
• Pamela Storton
• Jonathon Reynolds
No further comments were received at this time and the Mayor closed public comment.
Action: It was motioned by Council Member McCorry-Driscoll and seconded by Council Member Weirick, to receive an overview of a potential grant program for businesses in the West Grand Avenue streetscape construction project work zone and adopt Resolution No. 25-06 with the amendments mentioned to approve and implement the program. The motion carried on the following voice vote:
AYES: Council Members – McCorry-Driscoll, Tuggle, Weirick, Mayor Pro Tem Robert and and Mayor Dee
NOES: Council Members – None.
ABSENT: Council Members – None.
ABSTAIN: Council Members – None.
Resolution No. 25-06: A Resolution of the City Council of the City of Grover Beach, California, Establishing a One-Time Business Assistance Grant Program for Businesses Impacted by the West Grande Avenue Streetscape Project.
PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council but were not listed on the agenda.
• Debbie Peterson
• Jonathon Reynolds
• Pamela Storton
• Claude Dausal
No additional public comments were received at this time and the Mayor closed the public comment portion of the meeting.
COUNCIL COMMITTEE REPORTS
A. Council Member Tuggle reported that she will attend the South County Chambers event that will take place on Thursday, January 30th and discussed the Homeless Services Oversight Council (HSOC) meeting.
B. Council Member Weirick stated he also attended the Homeless Services Oversight Council meeting.
C. Mayor Pro Tem Robert discussed attending the Air Pollution Contral District (APCD) meeting.
Minutes: City Council Meeting Page 7
Monday, January 27, 2025
COUNCIL COMMUNICATIONS
Council Member McCorry-Driscoll thanked City staff for helping and answering questions with onboarding to Council.
Council Member Tuggle thanked the members of the community for attending the meetings and acknowledged staff on the receipt of the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for 2022 and 2023 and lastly stated she is looking forward to having breakfast at The Grange for the first time.
Council Member Weirick discussed he attended the League of California Cities Conference in Sacramento and a few events throughout the County.
Mayor Pro Tem Robert mentioned he will be making pancakes at The Grange on Sunday, February 2nd and welcomes everyone to go to the Exploration Discovery Center and view their new exhibit.
Mayor Dee requested staff to come forward with a uniform process for all meetings regarding recording and use of microphones; mentioned she also attended the League of California Cities Conference, and is excited for the Community Forum that is taking place tomorrow, January 28th at Ramona Garden Center at 6:00 p.m.
CITY MANAGER’S REPORT AND COMMENTS
City Manager Bronson mentioned on January 28th, from 6:00 p.m. – 8:00 p.m. at the Ramona Garden Park Center the City will have a Community Priorities Forum, an open public workshop where we are seeking Community input to help inform the Council to identify key priorities for the City to focus on.
CITY ATTORNEY’S REPORTS AND COMMENTS
None.
CLOSED SESSION
City Attorney Lomeli read Closed session items into the record.
Mayor Dee opened and closed public comment with no public comments received at this time.
At, 10:09 p.m., the City Council met in Closed Session regarding the following items:
Minutes: City Council Meeting Page 8
Monday, January 27, 2025
A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Government Code section 54956.9
Two (2) Cases.
Closed Session Announcements: At 10:52 p.m., Mayor Dee reconvened the meeting in open session with all Council Members present and announced the no reportable action taken during Closed Session.
There being no further business to come before the City Council, Mayor Dee adjourned the meeting at 10:53 p.m.
_____________________________
KASSI DEE, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
Agenda Item No. 4
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 11, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Wendi Sims, City Clerk
SUBJECT: Appointment to the Parks, Recreation, and Beautification Commission
RECOMMENDATION
Approve and confirm Mayor Dee’s recommendations to appoint Allysa Rueschenberg to the PRBC for a term ending May 31, 2029 and to have Jeff Bohrer be an alternate for any future vacancy prior to the next term expiration; and adopt the Resolution to appoint Allysa Rueschenberg to a four-year term of office, scheduled to expire on May 31, 2029.
BACKGROUND
A vacancy arose on the Parks, Recreation, and Beautification Commission due to the election of Chair Kassi Dee to Mayor. Former Chair Dee’s term was set to expire on May 31, 2025. This vacancy was listed in the Local Appointments List of All Boards, Commissions, and Committees scheduled vacancies for calendar year 2024. The list was posted on or prior to December 31, 2024, in the local newspapers, noticed on the City’s website, government cable access Channel 20, and posted on the bulletin board located at City Hall.
There were five qualified applicants for this vacancy and an Advisory Body Screening Committee, comprised of Mayor Dee, Acting Parks, Recreation, and Beautification Chair Shower, and Community Services Supervisor Kim conducted interviews on January 29, 2025. Applicants interviewed were advised that the Council would be requested to confirm and approve Mayor Dee’s appointment at tonight's meeting.
Mayor Dee recommends that the Council confirm and approve the appointment of Allysa Rueschenberg to a four-year term of office scheduled to expire on May 31, 2029. Jeff Bohrer was also recommended to be an alternate for appointment should there be a vacancy prior to the next term expiration in May 2025. The Commissioner will begin serving their new term at the next scheduled Parks, Recreation, and Beautification Commission meeting.
FISCAL IMPACT
There is no fiscal impact with the recommended action.
ALTERNATIVES
The City Council has the following alternatives to consider:
1. Approve and confirm Mayor Dee’s recommendations to appoint Allysa Rueschenberg to the RRBC and to have Jeff Bohrer be an alternate for any future vacancy prior to the next Staff Report: Appointment to Parks, Recreation, and Beautification Commission Page 2 February 11, 2025
term expiration; and adopt the Resolution to appoint Allysa Rueschenberg to a four-year term of office, scheduled to expire on May 31, 2029; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. All applicants were sent a copy of this staff report and the meeting agenda.
Attachments
1. Resolution
2. Applications (Note: redacted copies posted to the City website. Copies without redactions are available by request to the City Management Department.) RESOLUTION NO. 25-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA AUTHORIZING THE APPOINTMENT OF ALLYSA RUESCHENBERG TO
THE GROVER BEACH PARKS, RECREATION, AND BEAUTIFICATION COMMISSION WHEREAS, the Parks, Recreation, and Beautification Commission is a body of five lay citizens; and
WHEREAS, one (1) vacancy currently exists on the Commission due to Chair Kassi Dee being elected as Mayor; and
WHEREAS, the City actively solicited potential candidates to serve on the Parks, Recreation, and Beautification Commission; and
WHEREAS, it is the responsibility of the Advisory Body Screening Committee to interview prospective candidates and submit their recommendation to the Council for approval; and
WHEREAS, an Advisory Body Screening Committee, consisting of Mayor Kassi Dee, Acting Parks, Recreation, and Beautification Commission Chair Anita Shower, and Community Services Supervisor Larry Kim conducted interviews on January 29, 2025; and WHEREAS, at the conclusion of those interviews Mayor Dee made a recommendation to the Council for appointment.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach hereby accepts Mayor Dee’s recommendation and approves the appointment of Allysa Rueschenberg to a four-year term of office to the Parks, Recreation, and Beautification Commission, scheduled to expire on May 31, 2029.
On motion by ________, second by ________, and on the following roll-call vote, to wit:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 11TH day of February 2025. _____________________________
KASSI DEE, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK
Attachment 1
Attachment 2
City of Grover Beach
APPLICATION FOR APPOINTMENT TO SERVE
ON A CITY COMMISSION, COMMITTEE OR BOARD
This application will remain active and on file for one (1) year.
This is a public record open for inspection and reproduction.
You must be a registered voter of Grover Beach to apply.
City of Grover Biacr
JAN 14 2025
CEIV L
I wish to be considered for appointment to the following Commission, Committee or Board:
(Check only one. Submit a separate application if you are interested in more than one.) □ Planning Commission Iii Parks, Recreation and Beautification Commission □ Citizen Oversight Committee for City Revenue Measures Name: Jeffery Michael Bohrer Date: 01/11/2025
(Please print)
Home Address: . Grover Beach CA, 93433
Mailing Address: _N_/_A _____________________ _ (If different from home address) Occupation/Employer: Pacific Gas and Electric
Home Phone: Work Phone:
Cell Phone: E-mail:
May we contact you at work? El Yes No Years lived in Grover Beach: _1_5 __ Are you related or married to any elected or appointed City official or employee? [Q Yes gt No If yes, name of relative and their position with the City of Grover Beach: _N_IA _____ _ Community Service Experience:
Organization Dates Served Position
Family Care Network/Independent Various Events volunteer/Fundraisin£
NIA N/A N/A
N/A N/A N/A
Employment History (If aoolicable):
Company Dates Served Position
Family Care Network inc. Oct-2007 to July 2010 Facilities Coordinator Pacific Gas and Electric July 2010 to present Nuclear Security Officer
N/A N/A N/A
Application for Appointment to Commission, Committee, or Board Page2 Other relevant experience, education, or training: Associates Degree, focused on journalism.
Excellent writing and graphic design skills to aid in communication with city leaders and the public. Logistics committee chair for multiple Family Care Network fundraising events like Miracle Miles for Kids, Taste of the Central Coast, and The Wild West BBQ Bash.
What is your understanding of the role and responsibilities of the Commission/ Committee/Board?
My understanding is the commission examines our city's aesthetic and recreational needs, and offers suggestions to city staff or city leaders on how to best address them. I understand the job will require encouraging public participation, and organization/planning of city events.
Please indicate the reasons for your interest in serving on the Commission/Committee/ Board:
My goal is to serve the city in a positive way by offering my time and energy to benefit Grover Beach's appearance, and contribute to an improved experience for Grover Beach Residents.
You may attach additional pages or information that may be beneficial to the Advisory Body Screening Committee, City Council and/or City official(s) when considering your application.
Please be advised that this application may be discussed by the City Council at an open meeting.
Information provided to the City Council at open meetings is copied to the news media.
Have you ever attended a meeting of this Commission, Committee, or Board? Yes ~o If yes, how many in the last year? _Nt_A ___ _ Why did you attend? _Nt_A _______ _ NIA
Financial Disclosure: In compliance with state law and the City's Conflict of Interest Code, all City Commissions, Committees or Boards are required to file a Statement of Economic Interests (Form 700) upon appointment, annually thereafter, and upon leaving office. The Form 700 is a public document regarding personal and business information including sources of income, loans, investments, and interests in real property. For more information visit: http://www.fppc.ca.gov Please submit completed application to:
For Office Use Only
Office of the City Clerk
154 South 8th Street
Grover Beach, CA 93433
Or via email: [email protected]
Interview Date: ______ Appointed: □ Yes □ No Appointed Date:
Appointment is for: □ Unexpired Term Ending _______ □ Full Term Ending _____ _
City of Grover Beach City of Grover Beach
*
2025
APPLICATION FOR APPOINTMENT TO SERVE
ON A CITY COMMISSION, COMMITTEE OR BOARD HECEIVED
This application will remain active and on file for one (1) year.
This is a public record open for inspection and reproduction.
You must be a registered voter of Grover Beach to apply.
I wish to be considered for appointment to the following Commission, Committee or Board:
(Check only one. Submit a separate application if you are interested in more than one.) 0 Planning Commission Parks, Recreation and Beautification Commission 0 Citizen Oversight Committee for City Revenue Measures Name: Allysa Rueschen berg Date: 12/30/24
(Please print)
Home Address: Grover Beach CA 93433
Mailing Address:
(if different from home address)
Occupation/Employer: Nurse Practitioner with Dignity Health Home Phone: Work Phone:
Cell Phone: E-ma
i
l:
May we contact you at work? 0 Yes Ei No Years lived in Grover Beach: 7 Are you related or married to any elected or appointed City official or employee? j ie Yes No If yes, name of relative and their position with the City of Grover Beach:
.. Experience: .
Organization Dates Served Position
Gateway Center Transitional Housing Various times 2014/2015 (Atlanta, GA) Health education presentations Girls on the Run 2014 season Coach
VA Hospital in Palo Alto, CA Weekly 2011 - 2012 Activities volunteer, BINGO night Company Dates Served Position
Dignity Health 2023-Present Nurse Practitioner, Gastroentergology San Luis Internal Medicine 2018-2023 Nurse Practitioner, Primary Care _
Application for Appointment to Commission, Conunittee, or Board Page 2 Other relevant experience, education, or training:
Bachelor of Science and Master of Nursing degrees
What is your understanding of the rola and responsibilities of the Commission/ Committee/Board?
Provide recommenationsto City Council and Community Services program regarding parks, recreation, city events, and beautification efforts.
To provide a forum for public input on the above matters.
Please indicate the reasons for your interest in serving on the Corninission/Conintitteof Board:
I would like to have more involvement in service to my community.
Now raising two small children here and we frequent city parks and events.
You may attach additional pages or information that may be beneficial to the Advisory Body Screening Committee, City Council and/or City official(s) when considering your application.
Please be advised that this application may be discussed by the City Council at an open meeting.
Information provided to the City Council at open meetings is copied to the news media.
Have you ever attended a meeting of this Commission, Committee, or Board? C,r1 if yes, how many in the last year? Wing did you attend? Financial Disclosure: in oomptiance with state Imor and the ado Conflict of Interest Code, all City Commissions, Committees or Boards are required to Me a Statement of Economic Interests (Form 700) upon appointment. annually thereafter. and upon leaving of5ce. The Form 700 is a public document regarding personal and business information Including sources of income, loam itweetrnents, and interests in real property. For more information visit hep:liwww,fDpc.caveu Your
Please submit completed Office of the City Clerk
154 South 8* Street
Grover Beach, CA 93433
Or via emelt qbadnUJnweçs9hcq
For Moe Use Only
Interview Date: Appointed: Q Yes 0 No Appareled Data;
Appointment le 0 tinnieened Term Ending 0 Full Twin Ending City of Grover Beach City of Grover Beach
APPLICATION FOR APPOINTMENT TO SERVE
ON A CITY COMMISSION, COMMITTEE OR BOARD RECEIVEL
This application will remain active and on file for one (1) year This is a public record open for inspection and reproduction You must be a registered voter of Grover Beach to apply I wish to be considered for appointment to the following Commission, Committee or Board (Check only one Submit a separate application if you are interested in more than one) 0 Planning Commission III Parks, Recreation and Beautification Commission 0 Citizen Oversight Committee for City Revenue Measures Name: Jill Stegman Date: 12/31/2024
(Please print)
Home Address: , Grover Beach, CA
Mailing Address:
(If different from home address)
Occupation/Employer: Retired
Home Phone: Work Phone.
Cell Phone. E-mail.
7 May we contact you at work? IZI Yes 0 No Years lived in Grover Beach.
Are you related or married to any elected or appointed City official or employee? Ig Yes ij No If yes, name of relative and their position with the City of Grover Beach:
Community _ Service Experience: .
Organization Dates Served Position
Grover Beach Library 2017-2018 app Librarian
I lo I ment History •• I If a • • licable :
Company
,
Dates Served Position
Atascadero High Sept 1985-June 2011 Teacher, Librarian
Application for Appointment to Commission, Committee, or Board Page 2 Other relevant experience, education, or training:
I was involved with many youth community activities during my teaching and librarian experiences 1 hosted library sleep-overs, book fairds and Day of the Dead celebrations What is your understanding of the role and responsibilities of the Commission/ Committee/Board?
My understanding of the role of the Board is to support the ongoing projects of the City Parks and Recreation Department in planning events for the community Another responsibility is the beautification and enhancement of our city parks Please indicate the reasons for your interest in serving on the Commission/Committee/ Board:
I would like to help make our city a positiv experience for all by engaging more of our community of different cultural backgrounds I would also like to see more classes and activities You may attach additional pages or information that may be beneficial to the Advisory Body Screening Committee, City Council and/or City official(s) when considering your application Please be advised that this application may be discussed by the City Council at an open meeting.
Information provided to the City Council at open meetings is copied to the news media.
Have you ever attended a meeting of this Commission, Committee, or Board? aYes L7INo If yes, how many in the last year? Why did you attend?
I viewed 2 of the meeting online, but hae not attended any meetings in person.
Financial Disclosure. In compliance with state law and the City's Conflict of Interest Code, all City Commissions, Committees or Boards are required to file a Statement of Economic Interests (Form 700) upon appointment, annually thereafter, and upon leaving office The Form 700 is a public document regarding personal and business information including sources of income, loans, investments, and interests in real property For more information visit, http //wvvw fppc ca qov Signature:
Your interest in serving the City of Grover Beach is sincerely appreciated! Please submit completed application to Office of the City Clerk 154 South 8th Street
Grover Beach, CA 93433
Or via email gbadminoroverbeach org
For Office Use Only
Interview Date Appointed Li Yes J No Appointed Date
Appointment is for 0 Unexpired Term Ending J Full Term Ending Agenda Item No. 5
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 11, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Closeout of State Community Development Block Grant Coronavirus (CDBG-CV) Contract 20-CDBG-CV2-3-00077
RECOMMENDATION
Receive a report summarizing the accomplishments performed under the State Community Development Block Grant Coronavirus (CDBG-CV) Agreement 20-CDBG-CV2-3-00077; conduct a public hearing to solicit public input regarding expenditures and accomplishments of the funding received under the contract; and direct staff to proceed with submitting required documents for closeout to the State.
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program authorizes the use of funds to provide decent housing, suitable living environments, and economic opportunities to low- and moderate-income families. There are two types of CDBG programs: “entitlement1
” and “non-entitlement.” The “non-entitlement” program is administered by the State Department of Housing and Community Development (HCD).
Beginning in 2013, the City has participated in the “non-entitlement” program where the City can apply for available funding under a competitive application process. The HCD publishes a Notice of Funding Availability (NOFA) for each program year for eligible projects. Since 2013, the City has received grant awards for the following projects:
City Awarded Programs
Ramona Garden Park Rehabilitation Project Phases 1 and 2 (2023A) $3,300,000 Waterline Improvement Project (2013, 2017, 2020) $5,900,000 Subsistence Payments/Eviction Prevention Program (2013, 2017, 2020) $840,000 Security Deposits/Rapid Rehousing Program (2013, 2017, 2020) $303,000 Childcare Training Program (2020 Coronavirus) $51,000
Warming Center Operation Program (2020 Coronavirus) $163,000 Homeless Services Program (2020 Coronavirus) $256,000
Homeless Shelter Operation Program (2022) $500,000
Planning/Technical Studies (2013, 2017)2 $200,000
Total $11,513,000
1 Metropolitan cities and urban counties are entitled to receive annual grants from HUD under the “entitlement” program. Metropolitan cities are principal cities or Metropolitan Areas (MAs), or other cities within MAs that have populations of at least 50,000. Urban Counties are within MAs that have a population of 200,000 or more excluding the population of metropolitan cities within their boundaries.
2 Includes Housing Element Update, Economic Development Study, Senior Center Feasibility Study Staff Report: CDBG-CV Contract Closeout Page 2
February 11, 2025
In order to close out a contract, the City is required to first conduct a public hearing to solicit input regarding expenditures and accomplishments of the funding received under the contract and then submit required documents to HCD. On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in response to the impacts of the COVID-19 pandemic. HCD published a Notice of Funding Availability (NOFA) for CDBG Coronavirus Aid, Relief, and Economic Security (CDBG-CV) funds. The City was eligible to receive $369,468 based on a formula provided by HCD for rounds 2 and 3 of CV funds and received $113,000 in funds for the operations of the Winter Warming Shelter (Contract 20-CDBG-CV2-300087)3 . Approximately
$256,468 in funds for a Homeless Services Program (Contract 20-CDBG-CV2-3-00077), both operated by the 5Cities Homeless Coalition (5CHC).
The Homeless Services Program expanded outreach efforts by 5CHC to address the health and safety challenges related to COVID-19 by providing hotel isolation, testing, transportation, and distribution of PPE, food, and hygiene supplies. The funding allowed 5CHC to provide additional services and supplies during their engagement efforts and interactions. The program assisted 1,144 individuals including 602 individuals during outreach efforts and 542 individuals at 5CHC’s navigation center. As a result of the additional engagement provided by this program, 93 were connected to 5CHC's Cabins for Change or Balay Ko on Barca non-congregate shelters, and 45 have been permanently housed.
The program has fully expended the awarded funds, and staff has submitted final funds requests for all eligible expenses and will be packaging the required closeout documents to initiate the closeout process.
FISCAL IMPACT
There is no fiscal impact to the City’s operating budget from this action.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Conduct a public hearing, receive public comment and review the accomplishments performed under the 20-CDBG-CV2-3-00077 agreement; and provide direction for staff to send the HCD required closeout forms and documents; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The public hearing notice was published in the Tribune on January 29, 2025, and New Times on January 30, 2025, in English and Spanish, as required by HCD. In addition, the notice was also posted on the City Hall bulletin board, City website, and social media accounts on January 29, 2025. 5Cities Homeless Coalition was notified of the meeting. 3 The closeout hearing for the Winter Warming Shelter (Contract 20-CDBG-CV2-3-00087) was held on October 23, 2023. The staff report is available on the City’s website at https://www.grover.org/DocumentCenter/View/14332/Item9_CDBG-closeout-CV2-Warming-Center Agenda Item No. 6
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 11, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policy Update
RECOMMENDATION
Receive FY 2024-25 Mid-Year Budget Review including the updated General Fund Financial Forecast; approve mid-year budget appropriation changes; and adopt the Resolution amending budget and financial policies.
BACKGROUND
Consistent with the Council’s adopted financial policies, this report provides an update on the City’s financial condition for FY 2024-25 and financial projections over the next five years. The forecast uses current budget data and economic indicators from national and local sources to establish projections for revenue and expenditure as well as illuminate any long-term challenges in balancing council priorities with available resources. The City presently has healthy reserves and relatively low operating costs when compared to neighboring jurisdictions along with having a strong “AA” credit rating. This is largely owing to Council’s commitment to prudent fiscal management and limited growth in the number of full-time City positions along with limiting escalations in wages and benefits during labor negotiations in 2024.
FY 2024-25 Mid-Year Financial Report
The General Fund is the City’s primary fund with taxes and major user fees funding basic public services. The Council adopted a FY 2024-25 General Fund budget of $18.6 million as included in Table 1.
Table 1
FY2024-25
GF Summary Budget Projected
Beginning Reserves 5,295,075 5,295,075
Revenues/Transfers In 18,674,000 18,592,000
Expenditures/Transfers Out 18,629,000 18,075,000
Surplus/(Deficit) 45,000 517,000
Ending Reserves 5,340,075 5,797,388
Reserves as Percent of Operating 30% 32%
Does not include midyear changes.
Staff Report: FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policies Page 2 February 11, 2025
General Fund Revenues
For FY 2024-25, the City’s top five revenues (sales tax, property tax, cannabis tax, service charges, and transient occupancy tax) comprise approximately 80% of total revenue. Total General Fund revenues are projected to end the fiscal year at approximately $18.5 million compared to $18.6 million budgeted. Total revenues are projected to be $82,000 less than budget with increased property tax revenues though decreased sales tax, transient occupancy tax and cannabis tax revenues from budgeted amounts. This mirrors countywide trends of slowing tax revenues particularly with sales tax. Projections are determined by historical trends, revenue received in the current year, anticipated business growth, as well as consulting with experts.
However, the diverse revenue composition of the city has continued to reinforce its financial position in a period of high volatility. Cannabis tax revenues hit the highest level reported during FY 2020-21 during the pandemic though cannabis tax revenues have declined since then. Sales tax revenues have also slowed over the past year with some rebounding expected in the last quarters of FY 2024-25. Table 2 highlights the General Fund’s top five budgeted revenues for the FY 2024-25 budget compared to projected revenue at year-end.
Table 2
Budget Projected Over/(Under) Percent of
Budget
Property Tax 5,949,000 6,152,000 203,000 103%
Sales Tax 6,170,000 5,812,000 (358,000) 94%
Cannabis Tax 1,224,000 1,070,000 (154,000) 87%
Transient Occupancy Tax 1,186,000 1,001,000 (185,000) 84% Franchise Fees 947,000 848,000 (99,000) 90%
Total 15,476,000 14,883,000 (593,000) 96%
Property Tax revenue is estimated to be higher than budgeted by 5% from the prior year.
Countywide, the Case-Schiller Index shows a nearly 3% jump in housing price index year-overyear. In Grover Beach, housing prices in December 2024 were 8% higher than a year ago with a median price of $904,000. Sales Tax revenue, as noted above, is estimated to be lower by 6% ($358,000) compared to the FY 2024-25 budgeted amount. This decline is largely driven by ongoing reallocation of taxes from county-pooled sales taxes to jurisdictions which have fulfillment centers located within their boundaries rather than allocation to the purchase destination.
Fulfillment centers operate as intermediaries between the seller and buyer and therefore are considered to have the retail transaction occur in the jurisdiction of the fulfillment center and thereby taxes are allocated to that jurisdiction.
Cannabis Tax revenue is estimated to be 13% lower than budgeted. This number is based on revenues received through December 31, 2024, along with expectations for activity in the second half of the fiscal year. However, this projected year-end amount of approximately $1.1 million is still within the range of initial cannabis tax estimates. Franchise fees are projected to be 11% lower than budgeted due to the delay in operation of the new transoceanic cable which will pay an annual fee of 100,000 once the cable commences operations. Lastly, Transient Occupancy Tax (TOT) is estimated to be 16% lower than budgeted given revised opening of the new hotel at 950 El Camino Real to FY 2025-26. However, total TOT revenues are estimated to be 5% higher than FY 2023-24 and are projected to total $1 million for the first time for the City.
Staff Report: FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policies Page 3 February 11, 2025
General Fund Expenditures
Table 3 below shows that overall General Fund expenditures are projected to end the year with savings of $554,000. The projected budget is based on the most current data and historical trends and could change with six months remaining in the fiscal year.
Table 3
Budget Projected Variance
Salaries and Benefits 9,581,000 9,174,000 (407,000)
Supplies and Services 7,846,000 7,612,000 (234,000)
Minor Capital 55,000 142,000 87,000
Debt Service 297,000 297,000 0
CIP/ERF Transfers Out 850,000 850,000 0
Total 18,629,000 18,075,000 (554,000)
Minor Capital is anticipated to exceed the budgeted amount by $87,000. This is mainly resulting from unanticipated vehicle maintenance expenses due to long-term staff absence and reliance on third-party repair of City vehicles. Salaries and Benefits are projected to be lower than anticipated due to the results of the labor contracts approved in summer 2024 compared with initial funding projections. Supplies and Services are seeing generally lower costs than anticipated given moderating inflation which has been factored into year-end projections.
Water Fund
The Water Fund is projected to run a deficit in FY 2024-25 which is largely a result of costs outpacing revenues after water rates were lowered in May 2024 and then subsequently repealed by passage of Measure G-24 in November 2024. Although many capital projects have been paused for the water system, the current rate structure approved in 2021 does not generate sufficient revenues from water rates for regular operational and maintenance costs with the Water Fund running a deficit of $800,000 in FY 2023-24. However, divestiture from the Central Coast Blue JPA provided an additional $719,696 from reimbursable property acquisition costs in FY 2024-25 somewhat mitigating the year-end projected deficit to $300,200 as represented in the table below.
Table 4 FY 2024-25 Budget FY 2024-25 Estimated
Revenue
Transfers In 25,000 25,000
Use of Money and Property 33,000 33,000
Revenue from Other Agencies - 719,696
Charges for Services 4,219,818 3,772,555
Total 4,277,818 4,550,251
Expense
Transfers Out 458,153 458,153
Salaries and Benefits 916,573 916,573
Supplies and Services 2,801,322 2,232,125
Minor Capital 40,000 40,000
Major Capital 25,000 1,103,601
Debt Service 281,293 100,000
Total 4,522,341 4,850,452
Surplus/(Deficit) (244,523) (300,201)
Staff Report: FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policies Page 4 February 11, 2025
Aside from a reservoir maintenance project undertaken in the prior year and completed in FY 2024-25, staff has largely suspended work on Water Fund capital projects to reduce impacts to reserves which stand at $4,047,221 as of the end of FY 2023-24. This information will be presented in further detail to the Council this spring as part of a water system update including the numerous affecting water supply conditions and water funding needs.
Wastewater Fund
The Wastewater Fund ended FY 2023-24 with a surplus of $368,616 to cash reserves to bring the reserve balance to $3,695,467. However, after sewer rates were repealed because of the passage of Measure G-24 in November 2024, staff projects a decline in revenues due to the reversion to the 2021 rate schedule with expenses for regular operations and maintenance outpacing revenues. As with the Water Fund, staff have largely curtailed capital work for the City’s wastewater system to minimize spending considering appreciating expenses. Ultimately, this results in a deferral of numerous wastewater infrastructure projects to improve the City’s wastewater system. This information will be presented in further detail to the Council on February 24 as part of a sewer system update.
Table 5
FY 2024-25 Budget FY 2024-25 Estimated
Revenue
Transfers In - -
Use of Money and Property 61,152 61,152
Revenue from Other Agencies - -
Charges for Services 1,799,618 1,375,671
Other - -
Total 1,860,770 1,436,823
Expense
Transfers Out 248,152 248,152
Salaries and Benefits 827,992 827,992
Supplies and Services 404,825 404,825
Minor Capital 200,000 200,000
Major Capital 755,000 755,000
Debt Service - -
Total 2,435,969 2,435,969
Surplus/(Deficit) (575,199) (999,147)
Carry-Over of Capital Project Funding and Authorized Appropriations Per Council’s adopted financial policies, any unused appropriations at the end of FY 2023-24 in active capital improvement projects and multi-year programs are reappropriated for continued use in FY 2024-25. Attachment 1 contains a listing of CIP carryover by governmental or enterprise funding. In total, the CIP carryover amount is $9,276,572. Some of the projects on the list have already been completed (Reservoir Maintenance) or are expecting completion by the end of the fiscal year FY 2024-25 (West Grand Ave Streetscape). However, the Sewer System Upgrades for Existing Flows project in the Wastewater Fund remains in pending status given a lack of resources to undertake the project.
Staff Report: FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policies Page 5 February 11, 2025
Requested Mid-Year Budget Appropriations and General Fund Impact With the fiscal year halfway completed, departments evaluated their current operations to identify unforeseen needs that may require additional funding. Staff is requesting the Council’s approval of mid-year budget appropriation changes for the General Fund totaling $245,041 along with appropriations requested as shown in detail in Attachment 2 and summarized in Table 6 below.
Table 6
Fund
General Fund 245,041
Water 111,000
Wastewater 68,500
Total 424,541
Department
Non-Departmental 57,500
Police 23,500
Public Works 343,541
Total 424,541
Table 7 below shows the General Fund impact of these recommended mid-year budget appropriations for FY 2024-25 along with the related changes in General Fund reserves from the carry-over of authorized appropriations. Mid-year Budget Augmentation Requests (BARs) were driven primarily by increasing costs for various programs. The largest BAR request is for replacement of a Public Works Maintenance Truck at an estimated cost of $100,000 spread across the General, Wastewater and Water Funds.
Table 7
General Fund Summary
FY 2024-
25 Budget
FY 2024-25
Projection
Variance
Amount
(A) (B) (A-B)
Revenues/Transfers In 18,674,000 18,592,000 82,000
Expenditures/Transfers Out 18,629,000 18,075,000 554,000 Surplus/(Deficit) 45,000 517,000 472,000
Beginning Reserves 8,803,000 8,803,000 0
FY2024 Carryover -3,366,000 -3,366,000 0
Wastewater Fund Repayment -142,000 -142,000 0
Midyear Requests -245,041 245,041
Ending Reserves 5,340,000 5,566,959 226,959
General Fund Financial Forecast
Economic Trends
The General Fund financial forecast is intended to be a tool which provides a rational forecast of where the City’s financial position will be in five years. Staff annually updates a five-year General Fund financial forecast to evaluate the City’s financial condition and help develop the City’s budget.
Staff Report: FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policies Page 6 February 11, 2025
The consensus for national economic outlook has been mixed since the November 2024 election.
On the one hand, the Federal Reserve has lowered interest rates. However, the pace of the rate decreases is less than initially signaled due to moderating but sticky inflation. United States GDP for the last quarter of 2024 grew at a pace of 2.3%. Mortgage rates remain high relative to previous years and countywide active listings for homes have risen year-over-year but remain low relative to pre-pandemic conditions. As with most of California, the small inventory of available housing keeps asset prices high in San Luis Obispo County.
Based on the latest sales tax forecast ending September 30, 2024, statewide taxable sales are down by 2% overall compared with the previous year and the Central Coast is seeing a similar rate of contraction. The City saw a 1.6% reduction in taxable sales within the same period. Sales tax for general retail and construction were up 4.2% and 11.2% respectively. As noted earlier in the staff report, sales tax has been hit with a reallocation of taxable sales from countywide pool which was down by 10.2%, which offsets gains in retail and construction. Statewide, housing sales jumped by 19.8% in 2024. On the Central Coast, sales increased by slightly higher margin of 20.5%.
City’s Five-Year Forecast
Grover Beach’s diversified revenue base made it well suited to weather the challenging economic conditions seen in FY 2023-24. Although headwinds persist in economic conditions nationally, Grover Beach is poised to open multiple new developments and public infrastructure in 2025 which should help with improving economic conditions. It is anticipated that property, sales, and transient occupancy tax will all see moderate growth in 2025. Table 8 below shows a summary of this updated five-year forecast with a more detailed version shown in Attachment 3.
Table 8
Overall, the forecast indicates the General Fund is in a positive position over the five-year period with a small projected surplus in future years with increasing reserves. The City forecasts revenue growth and has taken steps to maintain prudent reserves considering the ongoing uncertainties in the national economic picture. Below are some points regarding major revenue sources and guiding assumptions around the forecast:
• Sales Tax. For FY 2024-25, the forecast assumes that general sales tax revenues will increase slightly less than 2% with subsequent growth steady at 2% 2025-30. Significant increases in revenue in prior years have leveled off with the reduction in inflation and fiscal stimulus.
• Property Tax. Using prior year revenue estimates, this year’s forecast assumes that the City’s property tax revenues will increase by 5% year-over-year. Fiscal years 2025-26 and beyond also assume consistent growth of 5% per year.
FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30
Budget Estimated Forecast Forecast Forecast Forecast Forecast Revenue 18,674,000 18,592,000 18,931,000 19,539,000 20,256,000 20,890,000 21,534,000 Expenses 18,629,000 18,075,000 18,655,000 19,255,000 19,877,000 20,522,000 21,190,000 Surplus/(Deficit) 45,000 271,959 276,000 284,000 379,000 368,000 344,000 Beginning Reserves 5,295,000 5,295,000 5,566,959 5,842,959 6,126,959 6,505,959 6,873,959 Ending Reserves 5,340,000 5,566,959 5,842,959 6,126,959 6,505,959 6,873,959 7,217,959 Reserves as percent of operating 30% 32% 33% 33% 34% 35% 36% FY2024-2025
General Fund
Staff Report: FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policies Page 7 February 11, 2025
• Cannabis Tax. The forecast revises cannabis tax revenue down from $1.2 million for FY 2024- 25, to just over $1 million, albeit a slight increase from in FY 2023-24. This forecast takes a conservative approach estimating additional revenues as fiscal years 2026-30 assume limited growth of 1% per year.
• Transient Occupancy Tax (TOT). In FY 2023-24, TOT revenues were $953,000. Staff projects increases in the following year due to the opening of the new hotel project, adding an additional 150 rooms of collectible TOT taxes commencing in FY 2025-26. Overall, TOT is projected to increase 3% each year beginning in 2025-26.
The presentation of the projected General Fund forecast represents the beginning of Council’s review and deliberation on the City’s budget which culminates in the Council’s adoption of the budget in June. Overall, projected revenues and future projected expenses prepare the City to meet operational and service needs and targeted capital projects without need to use reserves.
While reserves continue to be projected at healthy levels, staff recommends maintaining high level of reserves at this time to ensure sufficient liquidity given economic and financial uncertainties in 2025 along with the potential for unforeseen events.
Budget Policies Update
The City was awarded a Certificate of Excellence in Financial Reporting in FY 2022-23 by the Government Finance Officers Association and has again submitted for the same award in FY 2023-24. Maintaining this excellence requires review and update of budget and financial policies to better facilitate the allocation and administration of City resources. The City’s Financial and Budget Policies, included as Exhibit A in Attachment 4, provides for these recommended updates to policies as summarized below:
• General Fund Reserve minimum is increased to 25% based on a survey of current reserves held for cities of similar size. At present, the city has a minimum reserve of 15% of operating expenditure. Staff would note that this would be considered general or emergency reserves rather than reserves designated for equipment or facilities needs. • Equipment Replacement Fund is funded on an annual basis with allocation amount determined by the amount of depreciation for vehicle assets across the city in the current year and allocated across funds. By the end of the vehicle’s usable life via depreciation of the asset’s value, the replacement vehicle should be fully funded. • Establish Facility Reserve Fund to be funded on an annual basis with initial funding dependent on available surplus funds. Long-term, such a fund would be funded by apportionment of facility improvements or replacement costs over a number of years. • Budget transfer authority for department heads is amended to require City Manager approval when intradepartmental transfers cross categories of Supplies and Services and Salaries and Benefits.
• Capital Projects will require encumbrance in the year of allocation to establish life-ofproject budget amounts to facilitate carryover from year to year. • Grant applications require City Manager approval prior to submission of an application to the funding organization and subsequent approval of award by City Council. Prior to application, requesting departments should consider if funding will create ongoing financial commitment of City resources beyond funding provided by grant award.
Staff Report: FY 2024-25 Mid-Year Budget Review, General Fund Forecast, and Budget Policies Page 8 February 11, 2025
FISCAL IMPACT
The appropriations requested for the current FY 2024-25 midyear budget total $245,041 for the General Fund, $111,000 for the Water Fund, and $68,500 for the Wastewater Fund. Total FY 2022-23 carryover of special one-time authorized General Fund appropriations total $379,541.
CIP project carryovers from FY 2023-24 total $4,076,641 across governmental funds. Water and Wastewater appropriations will be paid from respective fund reserves at $2,023,819 and $3,176,112 each.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive the FY 2024-25 Mid-Year Budget Review including the updated General Fund Financial Forecast; approve mid-year budget augmentations; adopt the resolution approve revised budget and financial policies; and provide input and direction to staff; or
2. Provide staff with alternate direction.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. FY 2023-24 CIP Carryover
2. 2024-25 Mid-Year Budget Appropriation Changes
3. General Fund Five Year Financial Forecast
4. Resolution No. 25-__, Exhibit A: Budget and Financial Policy Revisions CIP Carryover
Description Project Carryover to FY2024-25
Ramona Garden Park Rehabililation 1259 70,379
2285 1,091,000
Major Streets: West Grand Ave Streetscape 2287 1,904,953 City Corp Yard Improvements 3002 124,591
Tyler Technologies Enterprise Resource Planning 6001 885,719 Total Governmental 4,076,641
Sewer System Upgrades for Existing Flows 5002 2,938,894 Front Street Lift Station Upgrades 5003 37,218
Sewer Upgrade for Existing Flows 5010 200,000
Total Wastewater 3,176,112
Regional Groundwater Sustainability (CCB) 4001 307,458
Water Main Zone Valves 4007 25,000
Water Meter Replacement Program 4270 300,000
Reservior Maintenance Program 4391 1,391,361
Total Water 2,023,819
Attachment 1
Attachment 2
Budget Augmentation Requests FY2024-25, Midyear
2/6/2025
Fund Fund Name Department Name Amount
101 General Fund Non-Departmental Emergency Medical Services Study 2,500 101 General Fund Non-Departmental West Grand Avenue Business Grants 45,000 101 General Fund Non-Departmental Workplace Violence Mitigation Projects 10,000 101 General Fund Police Drug Testing conducted by SLO Sheriff 2,000 101 General Fund Police Employee Training Needs 15,000
101 General Fund Police Vehicle Maintenance Needs 6,500 101 General Fund Public Works Backhoe Attachment for Tractor 7,500 101 General Fund Public Works Homeless Encampment Cleanup 40,000 101 General Fund Public Works Public Works Maintenance Truck (F-250) 50,000 101 General Fund Public Works Sidewalk Repair (Reimbursed by FEMA) 46,041 101 General Fund Public Works Vehicle Maintenance Needs 20,500 601 Water Public Works Chemicals for Water Treatment 60,000 601 Water Public Works Public Works Maintenance Truck (F-250) 25,000 601 Water Public Works Vehicle Maintenance Increase 26,000 603 Wastewater Public Works Dog Waste Bags 8,000
603 Wastewater Public Works Fats, Oil Grease (FOG) 15,000 603 Wastewater Public Works Public Works Maintenance Truck (F-250) 25,000 603 Wastewater Public Works Vehicle Maintenance Increase 10,500 603 Wastewater Public Works Weed Abatement for Fire Protection 10,000 Total 424,541
Fund
General Fund 245,041
Water 111,000
Wastewater 68,500
Total 424,541
Department
Non-Departmental 57,500
Police 23,500
Public Works 343,541
Total 424,541
City of Grover Beach
General Fund Forecast
2/6/2025
FY2022-23 FY2023-24 FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 Actual Actual Budget Estimated FY2025-26 FY2026-27 FY2027-28 FY2028-29 FY2029-30 REVENUES All figures rounded to nearest thousandth.
Property Tax 5,899,000 5,859,025 5,949,000 6,152,000 6,459,000 6,781,000 7,121,000 7,476,000 7,849,000 Sales Tax 5,993,000 5,733,274 6,170,000 5,812,000 5,884,000 5,987,000 6,109,000 6,224,000 6,328,000 Transient Occupancy Tax 924,162 953,685 1,186,000 1,001,000 1,331,000 1,371,000 1,512,000 1,557,000 1,604,000 Utility Users Tax 205,838 194,834 383,000 203,000 207,000 211,000 217,000 223,000 230,000 Cannabis Tax 1,198,037 1,066,489 1,224,000 1,070,000 1,070,000 1,081,000 1,092,000 1,103,000 1,114,000 Franchise Fees 713,394 718,907 947,000 848,000 965,000 1,023,000 1,043,000 1,064,000 1,085,000 From Other Governments 832,000 7,394,000 70,000 709,000 163,000 168,000 173,000 179,000 184,000 Licenses and Permits 424,554 514,705 306,000 535,000 546,000 557,000 568,000 579,000 590,000 Service Charges 953,107 730,264 963,000 759,000 759,000 767,000 782,000 798,000 814,000 Use of Money and Property 255,429 586,590 430,000 440,000 453,000 467,000 481,000 495,000 510,000 Fines and Penalties 42,857 37,838 21,000 38,000 38,000 38,000 38,000 38,000 38,000 Total Revenues 17,441,377 23,789,611 17,649,000 17,567,000 17,875,000 18,451,000 19,136,000 19,736,000 20,346,000
EXPENDITURES
Operating Programs 15,653,040 18,646,431 17,482,000 16,928,000 17,435,000 17,957,000 18,496,000 19,052,000 19,624,000 Salaries and Benefits 8,536,085 8,937,113 9,581,000 9,174,000 9,449,000 9,732,000 10,024,000 10,325,000 10,635,000 Supplies and Services 6,236,303 7,742,633 7,846,000 7,612,000 7,840,000 8,075,000 8,317,000 8,567,000 8,824,000 Minor Capital 880,652 1,966,686 55,000 142,000 146,000 150,000 155,000 160,000 165,000 Interdepartmental Charge 1 280 - - - - - - -
Other - 5,000,000 - - - - - - -
Major Capital - - - - - - - -
Debt Service 296,450 102,547 297,000 297,000 327,000 360,000 396,000 436,000 480,000 Total Expenditures 15,949,490 23,749,258 17,779,000 17,225,000 17,762,000 18,317,000 18,892,000 19,488,000 20,104,000
OTHER SOURCES & USES
Lease Financing 344,613 1,167,033 - - -
Transfers In (Cost Allocation) 546,000 599,750 605,000 605,000 623,000 642,000 661,000 681,000 701,000 Replacement Fund (Cost +General Allocation) 153,061 136,667 420,000 420,000 433,000 446,000 459,000 473,000 487,000 Transfers Out (CIP & ERF) (540,027) (628,987) (850,000) (850,000) (893,000) (938,000) (985,000) (1,034,000) (1,086,000) Total Sources and Uses 159,034 1,274,463 175,000 175,000 163,000 150,000 135,000 120,000 102,000 Midyear Adjustments (245,041)
Sources Over/(Under) Uses 1,650,921 1,314,815 45,000 271,959 276,000 284,000 379,000 368,000 344,000 Reserves, Start of Year 7,488,000 5,295,000 5,295,000 5,566,959 5,842,959 6,126,959 6,505,959 6,873,959 End of Year 7,488,213 8,803,000 5,340,000 5,566,959 5,842,959 6,126,959 6,505,959 6,873,959 7,217,959 CIP Carryover (2,356,500) (3,366,000)
Wastewater Fund Repayment (142,000) (142,000) (142,000) (142,000) (142,000) (178,000) (178,000) (178,000) (178,000) Reserves, End of Year 4,989,713 5,295,000 5,198,000 5,424,959 5,700,959 5,948,959 6,327,959 6,695,959 7,039,959 Reserve as Percent of Operating Programs 32% 28% 30% 32% 33% 33% 34% 35% 36% FY2024-25
Attachment 3
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA UPDATING THE CITY’S FINANCIAL POLICIES
WHEREAS, the City Council and City staff are committed to improving the financial management of the City; and
WHEREAS, The City Council of the City of Grover Beach reviewed and considered amendments to the financial policies previously adopted; WHEREAS, updating the General Fund reserve minimum requirement to 25% will promote the City’s financial health; and
WHEREAS, updating the method for allocation to Equipment Replacement Fund and establishment of a Facility Reserve fund will fund capital assets in prudent manner; and WHEREAS, amending guidelines for carryover of budget amount from year to year will improve the City’s financial management; and
WHEREAS, establishing guidelines for grant awards for City Departments will improve financial management; and
WHEREAS, this resolution supersedes all previous resolutions for Financial Reserves and Guidelines.
NOW, THERFORE BE IT RESOLVED that the City Council of the City of Grover Beach does hereby approve and establish Financial Policies and provides guidelines for the use of the reserves as shown Exhibit A.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 11th day of February 2025.
KASSI DEE, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 4
Exhibit A
FINANCIAL POLICIES
ADOPTED BY THE CITY COUNCIL – RESOLUTION NO. 25-
The cornerstone of municipal financial management is a sound policy that sets forth guidelines in the areas of revenues, operating expenditures, investments, reserves, financial reporting, capital improvements, and budgeting. Elected officials and appointed staff are accountable for public funds and responsible for the wise management of municipal finances.
The community is entitled to reports that clearly communicate the financial health of the City. The following policies will guide and influence the financial management practices of the City of Grover Beach.
BUDGET & REPORTING
The City Manager will provide a biennial budget to the City Council for review and adoption by June 30th. In year two of the two-year cycle, the budget will be approved for second year appropriations but will not require a full budget hearing given passage of the budget in the preceding year.
The City's budgetary system will be integrated and compatible with the accounting system, and the City Budget will be prepared on a basis in conformance with Generally Accepted Accounting Principles (GAAP).
The Mid-Year Budget Review and Financial Forecast will be presented no later than the first regular City Council meeting in March of each year. The Mid-Year Budget Review and Financial Forecast will include the current status of revenue collections and budget expenditures, economic trends, and state budget deliberations, as well as any proposed amendments to the current year budget.
Annually, the City may seek the California Society of Municipal Finance Officers (CSMFO) award of Excellence for Municipal Budgeting. Annually, the City may seek the Government Finance Officers Association (GFOA) Certificate of Achievement for Distinguished Budget Presentation award.
Annually, the City's Comprehensive Annual Financial Report (CAFR) will be prepared by an independent auditor in accordance with Government Auditing Standards issued by the Comptroller General of the United States. Annually, the City may seek the GFOA Certificate of Achievement for Excellence in Financial Reporting.
RESOURCES
Resources are defined as revenues collected during one fiscal year, as well as resources carried over from prior years.
Revenues may be ongoing or one-time in nature, but resources from prior years are always one-time in nature. The following policies apply to resources:
• One-time resources will be used for one-time expenditures or enhancement of reserves rather than funding ongoing services.
• All revenue forecasts will reflect realistic assessments of future conditions. • Regular reports comparing actual to budgeted revenues will be prepared by City staff for the City Council. • All grant applications shall obtain City Manager’s authorization prior to submission of the grant application and acceptance of the award by City Council.
o All grants will be evaluated to determine the long-term operating and maintenance costs associated with the grant prior to acceptance of the grant award by City Council. o All grants are required to have expense and revenue appropriations in the budget for which they are planned.
EXPENDITURES
Expenditures are payments made to employees, vendors, or contractors supplying goods or services to the City, except as provided in GBMC Section 2107.1. All expenditures must be made consistent with appropriations approved by the City Council in the Annual Appropriation Resolution.
• Regular reports comparing budget expenditures to actual expenditures will be prepared by City staff for the City Council's information.
• When new operating programs or capital projects are proposed, staff will provide the City Council with an analysis of the one-time and ongoing costs associated with the program or project. • Except for initial expenditures for the creation of new programs or during periods of economic distress which result in reductions in local revenues or state funding for municipal activities, all ongoing costs for operating programs shall be paid from the ongoing revenues.
RESERVES
It shall be the City's policy to draw down reserves consistent with the following priorities:
• The use of reserves for one-time expenditures that generates ongoing cost savings or cost avoidance. • The use of reserves for one-time expenditures that generates ongoing revenue enhancements. • The use of reserves for a one-time expenditure that leverages the expenditure of significant public or private investment in the City by other entities.
• The use of reserves to offset shortfalls in the collection of revenues. • The use of reserves to offset unanticipated increases in expenditures for current programs or projects.
GENERAL FUND RESERVES
The General Fund Reserves for the City is established as a minimum of 25%. Reserves of 25% is comprised of a General Reserve and Emergency Reserve as described below:
GENERAL FUND-GENERAL RESERVE • The City hereby establishes a General Reserve of 15% of the current fiscal year's General Fund operating budget. The specific purpose of the General Reserve is to provide funding to meet operational appropriation requirements if the City experiences shortfalls in the collection of General Fund revenues or major unanticipated increases in expenditures.
• Any transfer of funds from the General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.
GENERAL FUND-EMERGENCY RESERVE • The City hereby establishes an Emergency Reserve of not less than 10% of the General Fund operating budget.
This reserve is established for the purpose of providing emergency funding because of a declared emergency or to fund an unanticipated urgent event affecting or threatening the public health, safety, and welfare of the City of Grover Beach.
• Any transfer of funds from the Emergency Reserve may only be made upon City Council's approval of an amendment to the Annual Appropriation Resolution, after the City Council's finding that the guidelines established in the Resolution have been met.
EQUIPMENT REPLACEMENT FUND (ERF)
• Equipment Replacement Fund will reserve funding to establish an ongoing source to accumulate capital for the long-term replacement of the City’s capital equipment including vehicles, trucks, and any piece of equipment of depreciable value. Allocations to the ERF will be made by using the total amount of annual depreciation for an asset’s value. When an asset’s value is fully depreciated, it should be replaced.
FACILITY RESERVE FUND
• Facility Reserve Fund will be established and funded annually by the discretion of the City Manager. Annual appropriations to the Facility Reserve Fund should be guided by the total anticipated cost of facility or facility improvements spread out by the number of years before the facility or facility improvements are made.
WATER ENTERPRISE FUND-GENERAL RESERVE • The City hereby establishes a General Reserve of not less than 10% of the current fiscal year Water Fund operating budget. The Water Fund's General Reserve should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding to meet operational appropriation requirements in the event that the City experiences shortfalls in the collection of Water Fund revenues or unanticipated increases in expenditures. • Any transfer of funds from the Water Fund's General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.
WASTEWATER ENTERPRISE FUND-GENERAL RESERVE • The City hereby establishes a General Reserve of not less than 10% of the current fiscal year Wastewater Fund operating budget. The Wastewater Fund Reserves should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding to meet operation appropriation requirements in the event the City experiences shortfalls in the collection of Wastewater Fund revenues or unanticipated increases in expenditures. • Any transfer of funds from the Wastewater Fund's General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.
APPROPRIATION TRANSFER AUTHORITY
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget. • Transfers between line items in the same program may be made by department heads so long as they do not cross budget categories.
• Transfers between programs or categories in the same fund may be made by department heads with City Manager approval.
• Transfer between department budgets within the same fund may only be made by the City Council. • Transfers between different funds may only be made by the City Council. • Transfers to or from employee services line items may be made by the City Manager.
CAPITAL IMPROVEMENT PROGRAM
Annually, City staff will propose a Capital Improvement Program covering the subsequent five fiscal years. The plan will recommend specific funding of projects for the next three years and identify projects for further consideration. The Capital Improvement Program will include a listing of projects for further consideration by the City Council. Such projects will be those which are determined to merit further study, but lacking funding sources. Capital improvements will include Facilities and Infrastructure improvements which are valued over $50,000.
Capital Improvement Program projects will be reviewed to determine the best method of financing the project. City Council will determine whether the project is funded on a "pay as you go" basis or a debt instrument. The City will continue imposing development impact fees which ensure that a new development pays its fair share of the increased service capacity.
Funds allocated to capital projects will be encumbered for the life-of-project (across fiscal years) until fully expended or project is finished. Any funds remaining at the end of the project will be unencumbered and returned to origin fund as unassigned balance.
FISCAL MANAGEMENT
It is the City's policy to minimize the subsidization by the general taxpayer of the costs of services provided to the public which are of specific benefit, rather than general benefit. The City Council shall annually consider establishing specific cost-recovery policies related to such costs to be reflected in the Master Fee Schedule.
Consistent with the State Constitution, charges for services will not exceed the cost reasonably borne to deliver those services. Costs reasonably borne may include direct and in-direct costs, as well as reasonable reserves or amortization of equipment associated with the provision of the services.
The City will annually review the Master Fee Schedule to ensure that each user fee is reflective of its intended costrecovery percentage and will revise the fees as needed or revise the cost-recovery percentage.
The City will maintain water and sewer rate structures which are adequate to ensure that these enterprise funds remain firmly and separately self-supporting, including the cost of operation, infrastructure maintenance and replacement, indirect cost recovery, and debt service.
Whenever required by bond indentures, the City will determine whether debt service coverage ratios are being met.
Whenever coverage ratios are not being met, staff will recommend rate increases or expenditure reductions or some combination of the two, in order to meet coverage ratios.
An independent firm of certified public accountants will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) which will be incorporated into the Comprehensive Annual Financial Report.
INVESTMENTS
The City will continue to have a written investment policy approved by City Council resolution annually. The policy for investments in priority order are safety, liquidity and yield.
The City Council will receive reports on the cash position and performance of City investments at a minimum of a quarterly basis.
CAPITAL ASSETS
Future maintenance needs for all new capital facilities will be fully costed out. All equipment and facility maintenance needs for the next five years will be projected and updated annually. All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.
Agenda Item No. 7
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: February 11, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: City Attorney’s Office
SUBJECT: Brown Act Overview
RECOMMENDATION
Receive an overview on Brown Act requirements related to City governance.
BACKGROUND
The Brown Act, Government Code section 54950 et seq., regulates many aspects of local public agency meetings in both open and closed sessions. The companion statute for state agencies is the Bagley-Keene Open Meeting Act, Government Code section 11120 et seq. The Brown Act and Bagley-Keene Open Meeting Act require that all meetings of legislative bodies be open to the public, except for authorized closed sessions. The Legislature adopted the Brown Act in 1964 and substantively overhauled the Brown Act in 1993. The Legislature periodically makes substantive and technical changes to the Brown Act.
Since 1993, there have been two voter approved amendments to the California Constitution which affect the Brown Act, Bagley-Keene Open Meeting Act, and the California Public Records Act.
The first amendment in 2004 (Proposition 59), mandated that the Acts be broadly construed in furtherance of the public’s “right of access to information concerning the conduct of the people’s business.” Proposition 59 made no substantive changes to these Acts. The next amendment was in 2014 (Proposition 42) and expanded upon the constitutional mandate of Proposition 59 by making compliance with both the Brown Act and the Public Records Act mandatory even if the State Legislature suspends reimbursable mandates for compliance with those laws. As with Proposition 59, Proposition 42 made no substantive changes to these Acts.
Since 2014, Brown Act amendments have also included the ability to remove disruptive individuals from meetings (SB 1100), revised guidelines for remote participation by legislative body members (AB 2302) and added provisions for closed sessions regarding cybersecurity threats.
This presentation will provide an overview of Brown Act requirements related to City governance and an opportunity for questions and comments from the Council.
FISCAL IMPACT
There is no fiscal impact from this item.
ALTERNATIVES
N/A
Staff Report: Brown Act Overview Page 2
February 11, 2025
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
None