Budget Update
and Council Goal
Setting
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Kristin Eriksson, Assistant
City Manager
Nick Szamet, Administrative
Services Director
Budget Development
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• The budget is developed in a two-year cycle
• Council received a mid-year review and five-year financial forecast February 10.
• Planning a balanced budget with revenues slightly higher than expenditures while maintaining reserves above 25%
requirement
General Fund Revenues
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• Sales Tax
• For FY 2024-25 anticipated flat revenue growth after bottoming out from prior year contractions
• In FY 2025-26, local measures likely to perform better than countywide general tax given ongoing changes to pooled monies
• Property Tax
• Staff anticipates meeting the FY 2024-25 goal of 4% growth and is estimating 5% revenue growth in FY 2025-26 given the opening of several new developments.
Revenues continued
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• Cannabis Tax
• Staff is estimating no growth to Cannabis Tax for FY 2024-25 and FY 2025-26, no growth is projected
• Transient Occupancy Tax
• Anticipate revenue will exceed $1 million in FY 2024-25 • In FY 2025-26 staff anticipates $1.3 in revenue given opening of 950 El Camino hotel project
• Franchise Fees
Increases projected given completion of transoceanic cables General Fund Expenses
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• Staff will be presenting a balanced budget which includes Council Goals and Priorities
• Includes 3% for Cost of Living as provided in labor MOUs. • $100,000 for CIP and $433,000 for the equipment reserve fund leasing Public Works and Police vehicles
• 3.3% for Five Cities Fire Authority
• Increases for insurance premiums (general liability and worker’s comp.) Proposed Budget Augmentations
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• Limited number of augmentations are moving forward
Department Name FY 25-26 FY 26-27
Administrative Services Cost Allocation Plan Development 20,000 Community Development Permitting System Data Migration 12,000 Community Development General Plan Housing Element 200,000 Police Lease Costs for 45 Newport Avenue* 34,000 34,000 Police Police Station Restroom Remodel 50,000
Police Taser Replacement* 36,978 36,978
Public Works New Dump Truck 87,500
Public Works HVAC Replacement at Police Station 100,000 Total $340,478 $270,978
*Ongoing costs
Water and Wastewater Funds
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• Factor in additional revenue from rate increases under the 2021 structure • 4% for Water and 2% for Wastewater
• Limited amount of capital improvements in FY 2025-26 in the Water Fund • $100,000 needed electrical paneling work for Well 4 and additional $300,000 for a Water Resiliency study
• If current proposed Wastewater rate structure is adopted, staff will amend the FY 2025-27 budget to allocate funding for wastewater CIP projects Interfund Advance Policy
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• Staff has provided a financial policy for review and adoption by Council
• Formalizes the process of interfund advances to require Council’s authority as well as a recognized obligation and payment schedule (ROPS).
• Differentiates between short-term borrowing and long-term borrowing, provides for charging of interest between funds, and sets Council as the decision maker around any interfund advances
FY 2025-27 Council Goals
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• March 3, 2025
• Set Governing Norms
• Consider public input (2024 survey and 2025 forum); City staff input; financial outlook and resource considerations
• Develop Council Goals
• Broad multi-year goals
• FY 2025-27 Council Priorities
Getting to
Results
Vision, Mission, Values
Broad Multi-Year Goals
Biennial Council Priorities
City Manager’s Operational Plan
Departments' Work Plans
Broad Multi-Year Goals
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Public Safety and
Community
Services
Provide a range of
services that foster
a sense of safety,
enjoyment and well
being for
community
members.
Economic
Development and
Housing
Support business
attraction and
retention,
revitalization of
commercial areas,
and development of
housing
opportunities.
Community
Infrastructure
Provide for long
range planning and
well-maintained
infrastructure,
including streets,
water and sewer,
sidewalks, City
facilities and parks.
Financial and
Organization
Sustainability
Ensure fiscal
responsibility,
operational viability
and promote a
culture of
innovation and
customer service.
Public Safety & Community Services
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Major Plans and Initiatives Lead Department
Continue delivering a variety of community events, including the Summer Concert Series, Holiday events and other community gatherings City Manager’s Office Achieve 100% compliance with weed abatement and defensible space requirements along with 100% compliance of State mandated fire inspections
Five Cities Fire Authority
Respond to all Fire and EMS related emergencies within 6 minute or less 90% of the time Five Cities Fire Authority
Continue to enhance technology in the Police Department by deploying e-citations, additional community cameras, and new Tasers and bodycams.
Police Department
Focus on community traffic concerns and deploy one full-time motorcycle officer. Police Department
Economic Development & Housing
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Major Plans and Initiatives Lead Department
Prepare the 7th Cycle Housing Element (2026-2028) following identification of updated Regional Housing Needs Allocation Community Development
Department
Promote reopening of West Grand Avenue and the “West End” businesses following the completion of the streetscape project City Manager’s Office Pursue additional opportunities for affordable housing building on the success of the Cleaver and Clark Commons project and “Cabins for Change” and “Balay Ko on Barca” temporary housing facilities.
City Manager’s Office
Expand tourism and visitor opportunities in Grover Beach through hotel development, short-term rental permitting, and Visit Grover Beach marketing platform.
City Manager’s Office
Community Infrastructure
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Major Plans and Initiatives Lead Department
Update Utility and Streets Master Plans to identify infrastructure improvements and maintenance programs designed to assure reliable system operations as well as upgrades to support economic development and housing
Public Works Department
Update the Circulation Element of the General Plan to assure City roadway and transportation infrastructure effectively supports multimodal transportation including the needs of future development Public Works Department/
Community Development
Department
Work on potential locations and funding plans for new or renovated City facilities with initial priorities for the Corporation Yard and Police Station.
Public Works Department/
Police Department/ City
Manager’s Office
Financial & Organizational Stability
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Major Plans and Initiatives Lead Department
Implement Equipment Replacement Fund funding of vehicles and Enterprise Fleet Management to facilitate more streamlined vehicle acquisition and maintenance
Administrative Services
Department and Public
Works Department
Conduct Cost Allocation study to better assess and allocate City costs and charges for services and across funds.
Administrative Services
Department
Implement software to streamline and more efficiently manage Public Records Act requests and make such requests transparent to the public. City Manager’s Office FY 2025-27 Priorities
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Water and Sewer Infrastructure & Needed Resources
• Plan for the future
• Ensure appropriate funding levels
• Address aging infrastructure
• Educate the community
Rebuilding Community Trust, Community Engagement and
Civility in Public Discourse
• Provide education to the community
• Use various methods of communication
• Proactively initiate communication
• Broaden the audience for City communications
Water & Sewer Infrastructure & Needed
Resources
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Major Plans and Initiatives Lead Department Budget Allocation Implement new sewer rate structure for
billing (pending Council adoption through
Prop 218 process)
Administrative Services
Department
Staff Resources
Develop and execute capital bond
financing for sewer upgrade project
(pending Council adoption through Prop
218 process)
Administrative Services
Department
$126,000 from Wastewater
Fund
Update Sanitary Sewer Management Plan
(SSMP)
Public Works
Department
$32,000 from General
Fund
Water & Sewer Infrastructure & Needed
Resources
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Major Plans and Initiatives Lead Department Budget Allocation Develop water supply and demand study Public Works Department $300,000 from Water Fund Develop water rate study for updated rate
structure
Administrative Services
Department
$40,000 from Water Fund
Rebuilding Community Trust, Community
Engagement and Civility in Public Discourse
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Major Plans and Initiatives Lead Department Budget Allocation Continue regular community engagement
events
City Manager’s Office Staff Resources
Installation of informational boards at City
parks
City Manager’s Office $1,000 from General Fund
Implement program for distributing key
development project mailers to nearby
properties
Community
Development
Department
$1,000 from General Fund
Rebuilding Community Trust, Community
Engagement and Civility in Public Discourse
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Major Plans and Initiatives Lead Department Budget Allocation Implement program for distributing City capital
project mailers to nearby properties
Public Works
Department
$1,000 from General Fund
Develop “Grover Beach 101” community
outreach sessions with initial focus on
planning and building
City Manager’s Office/
Community Development
Department
Staff Resources
Implement 2025 biennial community survey City Manager’s Office/ $20,000 from General Fund Questions
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