Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: May 12, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director Kristin Eriksson, Assistant City Manager
SUBJECT: Update on the FY 2025-27 Budget and Draft Work Programs for Council Goals and Priorities; and Adopt a Resolution to Approve an Interfund Advance Policy
RECOMMENDATION
Receive a report on the FY 2025-27 budget development process and draft work programs for Council Goals and Priorities; and adopt a resolution to approve an Interfund Advance Policy; and provide input and direction to staff.
BACKGROUND
The upcoming Fiscal Year 2025-26 marks the beginning of the next two-year budget cycle and staff is currently developing the FY 2025-27 Proposed Budget for a hearing with the Council on June 9. The Proposed Budget will be posted on the City’s website in late May in preparation for the budget hearing. The process to develop the budget began on February 10, 2025 when the Council received an updated five-year General Fund financial forecast along with a mid-year budget review. The forecast indicates that the General Fund is in a positive position over the next five years with modest surpluses projected along with reserves above the Council’s policy goal of 25% of the operating budget (the Council subsequently increased the minimum reserves percentage from 15% to 25%). Stable and prudent financial management is a priority for the City under the policy leadership of the City Council.
However, there are broader and potentially significant economic uncertainties affecting local governments which has added a degree of caution to budget development. The economic effects of federal funding changes as well as trade and tariff policies are undetermined at this time but could affect City revenues in various ways. These economic factors as well as the City’s continued needs in service delivery and capital improvements reiterate the importance of developing a balanced budget for FY 2025-27 that maintains sufficient reserves.
FY 2025-27 Budget Development
The City budget is developed in a two-year planning and budgeting cycle which includes quarterly budget status reports and a mid-year review provided to the Council. In addition, since budgets are only appropriated for a single fiscal year, the budget for the second year (FY 2026-27 in this next cycle) is a projection that is reviewed the following year to determine if any adjustments are needed prior to appropriation. The following page shows a summary of key City revenues over the next two years:
Staff Report: FY 2025-27 Budget Update and Major City Goals Work Programs Page 2 May 12, 2025
General Fund Revenue
• Sales Tax - Projections use reports from the City’s sales tax consultant and local data to assess the ongoing condition of taxable sales in Grover Beach. For FY 2025-26, staff estimate a slight increase of 2.5% over the year-end estimate amount for FY 2024-25 of $5.96 million. General sales tax revenues are showing less growth compared to local sales tax measures X-06 and F-20 which is largely due to the reallocation of general sales tax receipts to counties with distribution centers.
Property Tax – Property tax revenues have been a consistent revenue source for the City with annual increases of 4% over the past several years. Based on data from the San Luis Obispo County Tax Assessor’s Office along with the timing of new developments within the city in FY 2026-26, staff is estimating annual property tax revenue increases of 5% with total property tax revenue for FY 2025-26 projected to be $6.46 million. • Cannabis Tax – As outlined in the February 10th financial forecast, staff estimates cannabis tax revenue to be $1.07 million in FY 2025-26 or $154,000 lower than the FY 2024-25 budget. However, staff believes the local cannabis market is showing signs of stabilizing and monthly receipts are trending similar to FY 2023-24. • Transient Occupancy Tax (TOT) - TOT is on target to exceed its revenue projections for the current fiscal year 2024-25 with revenues totaling approximately $1 million. For FY 2025-26, TOT is projected to increase to $1.3 million with anticipated completion and opening of the hotel project at 950 El Camino Real.
• Franchise Tax – Franchise fees for FY 2024-25 are estimated to be lower than projected given delays in the transoceanic fiber optic cable operations outside of the City’s control.
Staff is projecting $965,000 in franchise fees in FY 2025-26 with the expectation of cable operations commencing. There are also slight increases given the Waste Connections recent solid waste fee increase.
General Fund Expenses
In terms of General Fund expenditures, staff will be recommending a budget for FY 2025-27 that will continue to meet community needs in alignment with the adopted Council Goals and Priorities shown in Attachment 1. Costs for employee salaries and benefits for next year include approved Cost of Living Adjustments of 3% for all employee bargaining units and groups. Staff will recommend a General Fund contribution to the City’s Capital Improvement Program (CIP) of $100,000 though next year’s CIP includes numerous projects funded with General Fund carryover and non-General Fund sources. The draft CIP was presented to the Council on March 24 and the final version will be presented as part of the FY 2025-27 Proposed Budget. The budget will also include $433,000 in funding for the Equipment Reserve Fund which will allow the City to lease nine Public Works and Police replacement vehicles as part of the new Enterprise fleet management contract approved by the Council.
The Proposed Budget for FY 2025-27 will include a limited number of recommended General Fund increases though does not recommend adding new positions or expanding services or programs at this time given economic uncertainties. The following page shows a list of proposed General Fund budget increases that will be included with all but two items one-time costs:
Staff Report: FY 2025-27 Budget Update and Major City Goals Work Programs Page 3 May 12, 2025
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
Overall, the proposed General Fund budget for FY 2025-26 is balanced with revenues and expenditures equaling $18.7 million with an estimated surplus of $61,303. The proposed General Fund budget for FY 2026-27 is also balanced with revenues and expenditures equaling $19.3 million with an estimated surplus of $47,155. The budget produces ending reserves of approximately 30% of operating expenditures ($5.4 million) in FY 2025-26 and 28% ($5.2 million) in FY 2026-27 compared with the Council’s reserve minimum of 25%.
Water and Wastewater Funds
The budget for both the Water and Wastewater funds factor in additional revenue from the final rate increases under the current 2021 rate structure will go into effect on July 1, 2025 (4% for Water and 2% for Wastewater). Also included are a limited amount of capital improvements in FY 2025-26 in the Water Fund. This includes $100,000 needed electrical paneling work for Well 4 and additional $300,000 for a Water Resiliency study to address long-term water supply needs.
However, other necessary water projects in the CIP are not budgeted at this time given a lack of sufficient funding and there are also no wastewater capital projects in the CIP given a similar lack of funding. However, if the proposed wastewater rate structure is adopted by the Council through the Proposition 218 process, staff will amend the FY 2025-27 budget to allocate funding for wastewater CIP projects beginning in the next fiscal year.
Interfund Advance Policy
The Proposed Budget for FY 2025-27 includes $187,000 in annual payments from the General Fund to the Wastewater Fund to fully pay off remaining interfund loans by FY 2029-30. Per Council’s direction at the March 24, 2025, meeting, staff has prepared a policy (Attachment 1) for review and adoption governing any future interfund advances. The policy sets forward parameters defining short-term (less than 12 months) and long-term advances (more than 12 months).
Additionally, the policy provides for greater clarity around requirements for an interfund advance and formalizes the Council’s role as the authority to approve, amend, suspend, or discharge any interfund borrowing. Staff is seeking Council direction to incorporate this policy with policies previously approved by Council on February 10 to include with the Proposed Budget.
City Council Goals and Priorities Work Programs for FY 2025-27 On March 3, 2025, the Council held a workshop to discuss governance norms, long-term city vision, and goals and priorities for FY 2025-27. After agreeing upon governance norms, the Council considered, discussed and adopted broad multi-year goals as well as biennial Council priorities for FY 2025-27, as listed below:
Staff Report: FY 2025-27 Budget Update and Major City Goals Work Programs Page 4 May 12, 2025
• Broad Multi-Year Goals. These represent goals that the City’s budget is geared toward and what provide a foundation for the day-to-day work of the City. o Public Safety and Community Services – Provide a range of services that foster a sense of safety, enjoyment and well-being for community members. o Economic Development and Housing – Support businesses attraction and retention, revitalization of commercial areas, and development of housing opportunities.
o Community Infrastructure – Provide for long-range planning and well-maintained infrastructure, including streets, water and sewer facilities, sidewalks, City facilities and parks.
o Financial and Organizational Sustainability – Ensure fiscal responsibility, organizational viability and promote a culture of innovation and customer service. • Biennial Council Priorities. These represent those goals that the Council selected for focused attention and resources in the next two years.
o Water and Sewer Infrastructure and Needed Resources – Plan for the future, ensure appropriate funding levels, address aging infrastructure and educate the community on the systems’ needs.
o Community Engagement and Rebuilding Community Trust and Civility in Public Discourse – Provide education to the community, use various methods of communication, proactively initiate communication and broaden the audience for City communications.
These goals were formally adopted by the Council on March 24, 2025. The final report from the workshop shown in Attachment 2 shows these categories of goals and biennial priorities for FY 2025-27 along with the governance norms, results of the visioning exercise, and other topics.
Staff has identified work programs to effectuate the Council’s priorities so that appropriate resources are allocated in the FY 2025-27 budget, and progress can be measured in achieving the goals. Staff is seeking the Council’s input and direction on these work programs which will be incorporated in the FY 2025-27 Proposed Budget presented to the Council on June 9. The proposed work programs are included in Attachment 3.
Summary
Staff is seeking Council’s input and direction on the FY 2025-27 budget development update and draft FY 2025-27 Major City Goal work programs. This input and direction will be used in finalizing the proposed budget for FY 2025-27 which will be presented to the Council at the June 9th budget hearing. The Council’s adoption of the final budget in June will serve as the final approval for work programs for the Major City Goals and staff will then begin implementing these work programs in the new fiscal year and report back to Council on progress throughout the year.
FISCAL IMPACT
There is no fiscal impact from this agenda item.
Staff Report: FY 2025-27 Budget Update and Major City Goals Work Programs Page 5 May 12, 2025
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive a report on the FY 2025-27 budget development process and draft work programs for Council Goals and Priorities; and adopt a resolution to approve an Interfund Advance Policy; and provide input and direction to staff.; or
2. Provide staff with alternative direction.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution to Approve Interfund Advance Financial Policy
2. FY 2025-27 City Council Goals and Priorities
3. FY 2025-27 Draft Major City Goals Work Programs
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA ADOPTING A POLICY FOR REGULATING INTERFUND ADVANCES WHEREAS, the City of Grover Beach (“City”) maintains multiple funds established by law, ordinance, or administrative action to ensure financial transparency, accountability, and compliance with generally accepted accounting principles (GAAP); and WHEREAS, the City Council and City staff are committed to prudent and responsible financial management of the City; and
WHEREAS, interfund advances involve the temporary borrowing of financial resources between funds to address short-term cash flow needs, temporary deficits, or to facilitate timely completion of projects and activities; and
WHEREAS, clear and transparent guidelines governing interfund advances are necessary to maintain fiscal responsibility, accountability, and to ensure timely repayment to the originating funds; and
WHEREAS, the City Council has determined that adopting a formal policy on interfund advances will support effective financial management practices and protect the City’s financial health.
NOW, THERFORE BE IT RESOLVED by the City Council of the City of Grover Beach as follows:
1. The City Council hereby adopts the Interfund Advance Policy attached hereto as Exhibit A, which sets forth standards, procedures, repayment terms, responsibilities, and documentation requirements for interfund advances.
2. This resolution shall become effective immediately upon adoption.
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 12th day of May 2025.
KASSI DEE, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 1
Exhibit A
FINANCIAL POLICIES
ADOPTED BY THE CITY COUNCIL – RESOLUTION NO. 25-
INTERFUND ADVANCES
A short-term interfund advance is a temporary transfer of cash from one City fund to another and will be repaid within 12 months or the same fiscal year for purposes of cash flow needs. By contrast, a long term interfund advance extends beyond 12 months, and is used for capital projects or some major and unforeseen financial impact.
All advances require City Council approval via resolution and must be accompanied by a recognized obligation and payment schedule (ROPS). Only the City Council shall have the authority to amend, suspend, or discharge an approved ROPS. Advances shall not be used to fund recurring operating deficits.
Loans cannot be made to or from restricted or legally encumbered funds (e.g., bond proceeds, grantrestricted accounts) without legal authority from City Attorney. Interest shall be charged at a rate equal to the City’s average pooled investment return, unless otherwise specified by law or funding restrictions; alternatively, Local Area Investment Funds (LAIF) rates of return can also be used.
The Administrative Services Department shall record all interfund loan receivables and payables in accordance with GAAP as either assets or liabilities in fund balance sheet to effect transparent recognition both payable and receivable source of funds. Administrative Services shall report outstanding interfund loans in the Annual Comprehensive Financial Report (ACFR).
City Council Strategic Planning
Workshop Report
Held March 3, 2025
City of Grover Beach
Attachment 2
City of Grover Beach, California Page 1
City Council Strategic Planning Report
Trusted Advisors Transforming Communities
The City of Grover Beach, CA, held a City Council Strategic Planning Workshop on March 3, 2025, from 9:00 a.m. to 3:00 p.m. at the Ramona Garden Park Community Center. The session was facilitated by Raftelis.
The future is not some place we are going, but one we are creating.
The paths are not to be found but made.
And the activity of making them changes both the maker and the destination.
John H. Schaar, Loyalty in America
Summary Results
The results of the strategic planning session (detailed further in this report) were:
• Agreement on a set of Council norms
• Sharing of long-term visions
• Agreement on four broad goals and two top priorities
Goals:
Top Priorities:
• Water and sewer infrastructure and needed resources
• Community engagement, rebuilding community trust, and civility in public discourse
Participants
The following City Council and Executive Team participated in the strategic planning session:
• Mayor Kassi Dee
• Mayor Pro Tem Robert Robert, District 1
• Council Member Jules Tuggle, District 2
• Council Member Kathy McCorry-Driscoll,
District 3
• Council Member Clint Weirick, District 4
• Matthew Bronson, City Manager
• Rob Lomeli, City Attorney
• Kristin Eriksson, Assistant City Manager
• Greg Ray, Public Works Director
• Megan Martin, Community Development
Director
• Nick Szamet, Administrative Services Director
• Jim Munro, Police Chief
• Scott Hallett, Five Cities Fire Chief
• Wendi Sims, City Clerk
Facilitators: Jan Perkins and Julie Gieseke of Raftelis.
Workshop Objectives
• Discuss norms and roles
• Share visions for the future
• Establish multi-year goals and biennial Council priorities • Strengthen the team
Public Safety
and Community
Services
Economic
Development
and Housing
Community
Infrastructure
Financial and
Organization
Sustainability
City of Grover Beach, California Page 2
City Council Strategic Planning Report
Trusted Advisors Transforming Communities
Agenda
• Welcome from Mayor Kassi Dee
• Public comments
• Comments from City Manager Matt Bronson
• Review of today’s objectives and agenda
• Icebreaker
• Discussion of effective governance
• Share long-term visions
• Review accomplishments and key challenges
• Public comments
• Discuss and establish goals and priorities
• Recap on how best to achieve our priorities
• Wrap-up
Icebreaker Activity
Participants then engaged in an icebreaker activity involving sharing each individual’s first paid job.
Governance
Achieving important results for the
community requires effective governance as
well as clear goals. In this part of the
workshop, the City Council, along with the
City Manager, City Attorney and Assistant
City Manager, discussed governance.
The group discussed the attributes of an
exceptional council, referencing an article by
the Institute for Local Government. Comments
made are shown in the graphic on the right.
Comments included:
• We are one team: public, staff,
Council
• Having a sense of team is important
• Accountability and systems, as well
as continuous conversations with our
community, are key
• We know and operate within our
roles
• Stability is important in attracting
businesses and for jobs and economic
development
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City Council Strategic Planning Report
Trusted Advisors Transforming Communities
Roles within the Council/Manager form of government were also discussed. • Mayor: Chairs Council meetings, represents the City and serves as spokesperson, assists in creating consensus on Council, is one member of the City Council, communicates with the public
• Council: Sets policy as a body, appoints the City Manager and City Attorney, communicates with the public
• City Manager: Serves as chief executive officer of the organization (appoints, directs, and supervises all City staff), manages operations, offers policy advice to the Council, communicates with the public
• City Attorney: Provides advice to the Council and staff on City matters, approves legal documents, handles litigation
The Council discussed the importance of respecting the roles and staying within lanes. The following graphic illustrates the discussion.
“Policy” was described as the “what” (the overall direction), and “administration” was described as “how” to execute the direction.
City of Grover Beach, California Page 4
City Council Strategic Planning Report
Trusted Advisors Transforming Communities
Citywide Governance Resolution
The Council adopted a Governance Resolution on June 27, 2022, as part of transitioning to election of Council Members by District. Through the Resolution, the Council:
• Affirmed the value of Citywide governance regardless of the method by which Council Members are elected
• Considered that Citywide governance allows for the continuation of accessible customer service, the most effective use of taxpayer resources, and consistency of City services Norms for Governing
The Citywide Governance Resolution was referenced as foundational for a discussion of norms for governing. Many City Councils in other cities have adopted a set of norms that state their expectations for themselves in governing. Such adopted norms communicate to the community and staff, as well as each other, how they intend to work together on behalf of the City.
Through discussion, the City Council agreed to the following norms for governing:
1. Maintain a Citywide perspective while being mindful of our districts and communicate with our community.
2. Work together as a body, modeling teamwork and civility for our community.
3. Disagree agreeably and professionally.
4. Listen to one another. Communicate with each other. Seek to understand.
5. Assume good intent.
6. Demonstrate respect, consideration, and courtesy to others.
7. Share information and avoid surprises.
8. Keep confidential things confidential.
9. Respect the Council/Manager form of government and the roles of each party.
10. Communicate concerns about staff to the City Manager; do not criticize staff in public.
These norms are to be followed within the confines of applicable laws.
Visioning: Looking to the Future
The Council and the executive team then engaged in a visioning exercise, responding to the following questions:
1. What is true today about Grover Beach that you hope will still be true in 10 years?
2. What is not true now about Grover Beach that you hope will be true in 10 years? Responses are captured in the graphic below.
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City Council Strategic Planning Report
Trusted Advisors Transforming Communities
Key themes were:
• Having an exceptional
culture
• Good streets and parks
• Being a vibrant
community
• Being a destination
community
Accomplishments and Challenges
The Council and staff reviewed key accomplishments over the past year. The key question was what contributed to these
accomplishments. The group also discussed key challenges the City is facing. Highlights of comments are shown in the graphic.
Contributing factors for accomplishments included:
• Teamwork
• Everyone knowing their role
• Council vision and staying true to our North Star
• Having an open mind
• Fulfilling the community’s vision
• Seizing opportunities
• Staff
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City Council Strategic Planning Report
Trusted Advisors Transforming Communities
Key challenges highlighted included:
• Factors outside the City’s control
• Balancing resources
City Manager’s Key Areas of Focus
To provide further context for priority-setting, the City Manager shared his key areas of focus for the coming year. These are:
• Council onboarding, support, and goal setting
• FY2025-27 budget development and implementation
• Water and sewer system needs and funding issues
• Community engagement
• Business support
• Regional cooperation for water supply and fire/EMS
• Enhance
organizational
performance
The discussion with the
Council is captured in the
graphic.
Strategic Plan Framework
A new Strategic Plan framework was introduced. It includes the following elements:
• Vision, Mission, Values
• Broad Multi-Year Goals
• Biennial Council Priorities
• City Manager’s Operational Plan
• Departments Work Plans
The visioning exercise held will be a starting point for creating a vision statement for the City.
A purpose statement (or mission) already exists, as does a set of principles (values). These are:
Purpose (Mission): Enhance the quality of life for those who live, work and play in Grover Beach
City of Grover Beach, California Page 7
City Council Strategic Planning Report
Trusted Advisors Transforming Communities
Our Principles (Values):
• Provide exemplary City services and experiences
• Encourage innovation and a culture of constant improvement • Foster a diverse and inclusive workforce that reflects the community we serve • Strengthen community connections to promote an ethical and transparent City government • Advance policies that support regional cooperation through teamwork and action-driven leadership
Broad Multi-Year Goals
The next element of the new Strategic Plan framework is a set of four broad, multi-year goals. These will be what the City’s budget and services are directed toward in pursuit of the City’s mission and vision.
Four goals were proposed for discussion, and the Council agreed. The proposed goals were based on input from pre-workshop interviews with the Council. The final wording is shown below:
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 a culture of
innovation and
customer service.
City of Grover Beach, California Page 8
City Council Strategic Planning Report
Trusted Advisors Transforming Communities
Discussion
of these
multi-year
goals is
captured in
the
graphic.
Top Priorities
Following the discussion of the multi-year goals, priorities for the coming year were discussed.
The focus for determining priorities is to select the items intended for significant and additional progress.
The list shown below was discussed. It was generated through pre-workshop interviews, and one item (police facility) was added during the workshop.
The City Manager noted that work being done on all items, depending on resource availability. He said it is helpful to know which among these are most critical to the Council.
City of Grover Beach, California Page 9
City Council Strategic Planning Report
Trusted Advisors Transforming Communities
A dot voting exercise was used to ascertain
which of the issues were of most
importance to the Council as a body.
Agreed Upon Priorities
The two items gaining five dots each were:
• Water and sewer infrastructure
and needed resources
o Plan for the future
o Ensure appropriate
funding levels
o Address aging
infrastructure
o Educate the community
• Community engagement,
rebuilding community trust, and
civility in public discourse
o Provide education to the
community
o Use various methods of
communication
o Proactively initiate communication
o Broaden the audience for City communications
How to Best Achieve Our Priorities
As the session ended, the City Manager said he would be reporting progress on the top priorities, as well as other important work plan items. The Council agreed that it was important to stay focused on the agreed-upon priorities so that the City could make progress and achieve results.
Wrap-Up
The next steps out of the workshop are:
City of Grover Beach, California Page 10
City Council Strategic Planning Report
Trusted Advisors Transforming Communities
• The City Manager will present a staff report to the Council for adoption of the Council’s governance norms, four multi-year goals, and top priorities.
• The City Manager and staff will continue working on the budget and bring that forward to the Council this spring.
Closing Comments
As the strategic planning session came
to a close, each member of the
Council and executive staff offered
some closing comments about the
day’s session, as captured in the
graphic.
CITY COUNCIL GOALS AND PRIORITIES
DRAFT FY 2025-27 WORK PROGRAMS
MULTI-YEAR GOALS
Major Plans and Initiatives Lead Department
Public Safety and Community Services: Continue delivering a variety of community events, including the Summer Concert Series, Holiday events and other community gatherings City Manager’s Office Public Safety and Community Services: Achieve 100% compliance with weed abatement and defensible space requirements along with 100% compliance of State mandated fire inspections Five Cities Fire Authority Public Safety and Community Services: Respond to all Fire and EMS related emergencies within 6 minute or less 90% of the time Five Cities Fire Authority Public Safety and Community Services: Continue to enhance technology in the Police Department by deploying e-citations, additional community cameras, and new Tasers and bodycams.
Police Department
Public Safety and Community Services: Focus on community traffic concerns and deploy one full-time motorcycle officer. Police Department
Economic Development and Housing: Prepare the 7th Cycle Housing Element (2026-2028) following identification of updated Regional Housing Needs Allocation Community Development
Department
Economic Development and Housing: Promote reopening of West Grand Avenue and the “West End” businesses following the completion of the streetscape project City Manager’s Office 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.
Attachment 3
CITY COUNCIL GOALS AND PRIORITIES
DRAFT FY 2025-27 WORK PROGRAMS
Economic Development and Housing: 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
Economic Development and Housing: 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: 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
Community Infrastructure: 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
Community Infrastructure: 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 and Organizational Stability: 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
Financial and Organizational Stability: Conduct Cost Allocation study to better assess and allocate City costs and charges for services and across funds.
Administrative Services
Department
Financial and Organizational Stability: Implement software to streamline and more efficiently manage Public Records Act requests and make such requests transparent to the public. City Manager’s Office
CITY COUNCIL GOALS AND PRIORITIES
DRAFT FY 2025-27 WORK PROGRAMS
CITY COUNCIL PRIORITY: WATER AND SEWER INFRASTRUCTURE AND
NEEDED RESOURCES
Major Plans and
Initiatives
Lead
Department Key Milestones for
FY 2025-26
Key Milestones for
FY 2026-27
Budget Allocation
Implement new sewer rate
structure for billing (pending
Council adoption through Prop
218 process)
Administrative
Services
Department
• Update year 1 sewer rates
beginning July 1, 2025 with
new billing after effective
date
• Update year 2 sewer rates
beginning July 1, 2026 with
new billing after effective
date
Staff Resources
Develop and execute capital
bond financing for sewer
upgrade project (pending
Council adoption through Prop
218 process)
Administrative
Services
Department
• Prepare bond financing for
Council approval and issue
financing
• Implement sewer upgrade
project CIP 5002
• Incorporate bond financing
cost into sewer financial
plan
$126,000 from
Wastewater Fund
Update Sanitary Sewer
Management Plan (SSMP)
Public Works
Department
• Audit SSMP and begin first
draft of updated Plan
• Prepare final draft of SSMP
for Council approval
$32,000 from
General Fund
Develop water supply and
demand study
Public Works
Department
• Review draft scope with
Council as part of water
system update
• Conduct RFP process for
qualified water consultants
and approve contract with
selected consultant
• Update supply and demand
analysis including supply
resiliency information
$300,000 from
Water Fund
CITY COUNCIL GOALS AND PRIORITIES
DRAFT FY 2025-27 WORK PROGRAMS
• Implement study process
including public outreach
and engagement
• Present initial results and
subsequent final report to
Council for approval
Develop water rate study for
updated rate structure
Administrative
Services
Department
• Review draft scope with
Council as part of water
system update
• Conduct RFP process for
qualified rate consultants
and approve contract with
selected consultant
• Develop rate study with
presentation to Council
following water supply
study
• Implement new rate
structure if adopted by
Council through Prop 218
process
$40,000 from
Water Fund
CITY COUNCIL GOALS AND PRIORITIES
DRAFT FY 2025-27 WORK PROGRAMS
CITY COUNCIL PRIORITY: REBUILDING COMMUNITY TRUST, COMMUNITY
ENGAGEMENT AND CIVILITY IN PUBLIC DISCOURSE
Major Plans and Initiatives
Lead
Department Key Milestones for
FY 2025-26
Key Milestones for
FY 2026-27
Budget Allocation
Continue regular community
engagement events
City Manager’s
Office
• Host periodic “Coffee
with Council” events
• Host quarterly “City Talk”
community forums
• Host periodic “Coffee
with Council” events
• Host quarterly “City
Talk” community forums
Staff Resources
Installation of informational
boards at City parks
City Manager’s
Office
• Install two additional
information boards at
various City parks in
addition to initial three
• Monitor and regularly
update information
boards
$1,000 from
General Fund
Implement program for
distributing key development
project mailers to nearby
properties
Community
Development
Department
• Define “key projects”
(i.e., major zone
changes, multi-family
projects, mixed-use)
• Draft templates and
process (300-foot
mailing lists)
• Send out public
notices/outreach letters,
• Collect year-end
feedback and make
necessary
improvements
$1,000 from
General Fund
CITY COUNCIL GOALS AND PRIORITIES
DRAFT FY 2025-27 WORK PROGRAMS
and pre-construction
letters for key projects
(300 feet)
Implement program for
distributing City capital project
mailers to nearby properties
Public Works
Department
• Continue to audit
noticing efforts and
public feedback. Update
efforts as necessary.
• Continue to audit noticing
efforts and public
feedback. Update efforts
as necessary.
$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
• Develop session
framework and potential
schedule
• Develop specific topics
for initial planning and
building sessions and
review with Planning
Commission
• Implement initial
sessions and review
results for future
iterations
• Consider expanded
version of planning and
building sessions
• Consider other service
areas for potential
sessions
Staff Resources
Implement 2025 biennial
community survey
City Manager’s
Office/
• Work with survey
research consultant to
update survey
questionnaire
• Implement survey to
statistically valid sample
of residents
• Present results to
Council
N/A $20,000 from
General Fund