Agenda packet — Grover Beach City Council, June 9, 2025

AGENDA

GROVER BEACH CITY COUNCIL

GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET

GROVER BEACH, CALIFORNIA
MONDAY, JUNE 9, 2025, 6:00 PM
Next Resolution No .25-16
Next Ordinance No. 25-03
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

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 Tuesday, May 27, 2025 at 7:46 p.m. the City Council met in Closed Session regarding the following item:

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 8:20 p.m., Mayor Dee reconvened the meeting in open session with all Council Members present, and announced there were no reportable actions 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 adopt the agenda as presented or as revised by motion.

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
Monday, June 9, 2025

CEREMONIAL CALENDAR
None

PRESENTATIONS

1. Update on Recent Uses of Police Technology

PUBLIC COMMUNICATIONS
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.

2. Minutes of the City Council Meeting on Tuesday, May 27, 2025 – City Clerk Sims (Recommended Action: Approve the minutes as submitted or revised.)

VOICE VOTE

PUBLIC HEARINGS

3. Proposition 218 Public Hearing and Adoption of Proposed Wastewater Rate Structure – Administrative Service Director Szamet
(Recommended Action: 1) Conduct a Proposition 218 public hearing and determine the official number of written protests received on the proposed wastewater rate structure; and 2) if the number of valid protest letters are below 50% plus one of the number of parcels within the City, approve the proposed rate structure and adopt the Resolution amending the Master Fee Schedule for wastewater rates effective July 1, 2025.)

ROLL CALL VOTE

4. FY 2025-27 Proposed Budget and FY 2025-30 Capital Improvement Program – Administrative Services Director Szamet
(Recommended Action: Conduct a public hearing to review the FY 2025-27 Proposed Budget and FY 2025-30 Capital Improvement Program and provide direction to staff to finalize the twoyear budget for adoption on June 23, 2025.)

ROLL CALL VOTE

REGULAR BUSINESS
None
Agenda: Grover Beach City Council Meeting Page 3
Monday, June 9, 2025

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

CLOSED SESSION
It is the intention of the City Council to meet in Closed Session concerning the following item:

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.

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 Agenda: Grover Beach City Council Meeting Page 4
Monday, June 9, 2025
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 encourage 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
Update on Recent Uses of Police Technology
Agenda Item No. 1
Update on Recent Uses of Police
Technology
(CC Mtg 6/09/2025)

MINUTES

CITY COUNCIL MEETING
TUESDAY, MAY 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 Avery Patton, a 9-year-old, 3rd grader from Grover Heights Elementary.

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, City Attorney Rob Lomeli, City Clerk Wendi Sims, Police Chief Jim Munro, Administrative Services Director Nick Szamet, Community Development Director Megan Martin, and Public Works Director/City Engineer Greg Ray, Senior Planner Kyle Bell, and Five Cities Fire Authority Battalion Chief Brian Salce were also present.

CLOSED SESSION ANNOUNCEMENTS
None

AGENDA REVIEW
Action: Upon unanimous consensus, the Council adopted the agenda as presented.

CEREMONIAL CALENDAR

1. Proclamation for Pride Month was read by Mayor Dee and accepted by JBird, former Central Coast Pride Co-Director and Val Jones, Gala Pride and Diversity Center Board Member.

2. Proclamation for Hunger Awareness Day was read by Council Member Tuggle and accepted by Katie Osmond, Development Director at SLO Food Bank.

PRESENTATIONS
None
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.
• Caden Downey
• Gene Quayle
Agenda Item No. 2
Minutes: City Council Meeting Page 2
Tuesday, May 27, 2025

CONSENT AGENDA
It was motioned by Council Member McCorry-Driscoll and seconded by Council Member Tuggle to approve Consent Agenda Item Nos. 3, 4, 5, and 6 as recommended. The motion carried on the following roll call vote:

AYES: Council Members – McCorry-Driscoll, Tuggle, Weirick, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None

3. Treasurer’s Reports for the Period of April 1, through April 30, 2025 Action: Approved the Treasurer’s Reports as submitted.

4. Treasurer’s Reports for the 2022 Streets Bond Account - $10,000,000 for the Period of April 1, through April 30, 2025
Action: Approved the Treasurer’s Reports as submitted.

5. Minutes of the City Council Meeting on Monday, May 12, 2025 Action: Approved the minutes as submitted.

6. Award of Construction Contract for CIP Project 2295-18 Measure K-14 Street Maintenance Project
Action: Awarded a contract for construction of CIP Project 2295-18 Measure K-14 Street Maintenance Project to Pavement Coatings, Co. in the amount of $853,827.00 for the Base Bid; authorized the City Manager to sign and affirm change orders up to an aggregate of $100,000; and authorized the Mayor to execute the contract on behalf of the City.

PUBLIC HEARINGS

7. Second Reading and Adoption of an Ordinance Amending the Grover Beach Municipal Code to Incorporate the Updated State Fire Hazard Severity Zone Maps Released by California Department of Forestry and Fire Protection Mayor Dee read the title of the foregoing item and deferred to staff for a report.

Community Development Director Martin gave a PowerPoint presentation regarding the State Fire Hazard Severity Zone Maps. Five Cities Fire Authority Battalion Chief Salce was also available for any questions,
Mayor Dee declared the Public Hearing open and invited public comment on this matter. • Ron Arnoldson
There being no further public comments received, the Mayor Closed the Public Hearing.

Minutes: City Council Meeting Page 3
Tuesday, May 27, 2025
Action: It was motioned by Mayor Pro Tem Robert and seconded by Council Member Tuggle to Conduct a second reading and adopt Ordinance No. 25-01 adopting Chapter 8 (Fire Hazard Severity Zones) of Article VI (Public Safety) of the Grover Beach Municipal Code to formally adopt the updated Fire Hazard Severity Zone (FHSZ) maps as required by California Government Code Section 51179(a). The motion carried on the following roll call vote:

AYES: Council Members – McCorry-Driscoll, Tuggle, Weirick, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
Ordinance No. 25-01: An Ordinance of the City Council of the City of Grover Beach, California Adopting Chapter 8 (Fire Hazard Severity Zones) of Article VI (Public Safety) of the Grover Beach Municipal Code to Designate Local Fire Hazard Severity Zones

8. Second Reading and Adoption of an Ordinance to Amend Chapter 12 (Fireworks) of Article III (Public Welfare, Morals & Conduct) of the Grover Beach Municipal Code to Regulate Social Hosts Allowing Illegal Fireworks
Mayor Dee read the title of the foregoing item and deferred to staff for a report.

Police Chief Munro and Police Commander Millard gave a PowerPoint presentation regarding the Social Host Ordinance.

Mayor Dee declared the Public Hearing open and invited public comment on this matter. • Ron Arnoldson
There being no further public comments received, the Mayor Closed the Public Hearing.

Action: It was motioned by Council Member Weirick and seconded by Council Member Tuggle to Conduct a second reading and adopt Ordinance No. 25-02 Amending Chapter 12 (Fireworks) of Article III (Public Welfare, Morals & Conduct), adding sections 3996.1 through 3996.7 of the Grover Beach Municipal Code to Regulate Social Hosts who allow Illegal Fireworks. The motion carried on the following roll call vote:

AYES: Council Members – McCorry-Driscoll, Tuggle, Weirick, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
Ordinance No. 25-02: An Ordinance of the City Council of the City of Grover Beach, California, Amending Chapter 12 (Fireworks) of Article III (Public Welfare, Morals & Conduct) of the Grover Beach Municipal Code to Adopt Subsections to Regulate Social Hosts Who Allow Illegal Fireworks
Minutes: City Council Meeting Page 4
Tuesday, May 27, 2025

REGULAR BUSINESS

9. General Plan Circulation Element Status Update (GPA-25-0001) Mayor Dee read the title of the foregoing item and deferred to staff for a report.

Community Development Director Martin and Senior Planner Bell presented a PowerPoint presentation regarding the General Plan Circulation Element Status Update.

Mayor Dee invited public comment on this matter.
• Bill Rea
No further public comments were received at this time and the Mayor closed public comment.

Action: The Council received an update on the General Plan Circulation Element Status Update.

COUNCIL COMMITTEE REPORTS
A. Council Member Tuggle reported on the Zone Three Advisory meeting.

B. Council Member Weirick reported on the Community Action Partnership of San Luis Obispo (CAPSLO) and as the alternate he attended the Homeless Services Oversight Council meeting (HSOC).

C. Mayor Pro Tem Robert gave an overview of the Integrated Waste Management Authority (IWMA) and the Air Pollution Control District (APCD).

COUNCIL COMMUNICATIONS
Council Member McCorry-Driscoll discussed attending the Palladium ribbon cutting on May 18th and expressed she had three “thank you’s” for staff, responding to the Ramona Garden Park tree situation, getting Grand Avenue open before Memorial Day weekend and taking care of the City fiscally.

Council Member Tuggle mentioned attending the Strawberries through Grover Beach, walking down Grand Avenue and going to a few Grover Beach establishments, and she also gave a shout out to all the upcoming graduates.

Council Member Weirick thanked City Staff for getting West Grand Avenue open and mentioned he attended the Grover Beach Elementary Open House on May 22nd and the South County American Legion’s Memorial Ceremony on May 26th.

Minutes: City Council Meeting Page 5
Tuesday, May 27, 2025
Mayor Pro Tem Robert gave a shout out to the new graduates and gave kudos for the opening of Grand Avenue. He also mentioned the Grange Pancake Breakfast this Sunday.

Mayor Dee mentioned she and Council Member Weirick attended the Grover Beach Community Library’s Founders Day and on a sad note mentioned the passing of librarian Emily. She also attended the Tour de Grover and Strawberries through Grover Beach on Saturday and stated both were great community events.

CITY MANAGER'S REPORTS AND COMMENTS
City Manager Bronson discussed the reopening of Grand Avenue “fully” as of last Friday at 4:00 pm. and a “Ribbon Cutting Ceremony” will take place sometime in June. He thanked Council Member McCorry-Driscoll for her comments on the City’s financial acumen; and explained that the City team believes in living within our means, addressing community priorities and applying good financial practices and principals. He also mentioned we will be presenting the proposed budget for FY 2025-2027 at the June 9th City Council meeting.

CITY ATTORNEY’S REPORTS AND COMMENTS
City Attorney Lomeli had no comments.

CLOSED SESSION
City Attorney Lomeli read Closed session items into the record.

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.

Mayor Dee invited public comment on this matter. No comments were received at this time and the Mayor closed public comment.

At 7:46 p.m., the Council met in Closed Session regarding the items above.

Minutes: City Council Meeting Page 6
Tuesday, May 27, 2025

ADJOURNMENT
There being no further business to come before the City Council, Mayor Dee adjourned the meeting at 8:21 p.m.
_____________________________

KASSI DEE, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
Agenda Item No. 3

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 9, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: Proposition 218 Public Hearing and Adoption of Proposed Wastewater Rate Structure

RECOMMENDATION
1) Conduct a Proposition 218 public hearing and determine the official number of written protests received on the proposed wastewater rate structure; and 2) if the number of valid protest letters are below 50% plus one of the number of parcels within the City, approve the proposed rate structure and adopt the Resolution amending the Master Fee Schedule for wastewater rates effective July 1, 2025.

BACKGROUND
On March 24, 2025, staff and the utility rate study consultant Clayton Tuckfield with Tuckfield and Associates (Tuckfield) presented the results of the Wastewater Utility Rate Study and preliminary findings and recommendations to the Council. Development and presentation of this rate study was consistent with the Council’s priority of Water and Sewer Infrastructure and Needed Resources. This presentation followed previous Council agenda items providing an update on the City’s sewer system on February 24, 2025 and an update on street repairs and delays due to needed sewer improvements on January 27, 2025.

The rate study included a Revenue Requirements Analysis; Cost of Service Analysis; and Rate Design to fund operating and capital costs needed for the Wastewater Enterprise Fund over a five-year period from FY 2025-26 through FY 2029-30. The desired outcome of this study was to ensure that the rates are sufficient to cover costs associated with ongoing maintenance and operations of the wastewater utility, as well as anticipated capital improvements to address current system needs and existing deficiencies from aging and undersized infrastructure. The rates also include debt service obligations for financing major capital project upgrades and maintaining reserves equal to six months of typical maintenance and operations expenditures in accordance with industry standards. Monthly rates are charged to customers on a bi-monthly basis and constitute the primary source of revenue to operate the City’s wastewater system.

The rate study found that the current wastewater rate structure adopted in 2021 which includes a 2% increase on July 1, 2025 does not provide sufficient funding for long-term operation and maintenance expenses and capital projects for the City’s wastewater system. The study recommends annual wastewater rate increases of 17.8% for each of the next five years beginning July 1, 2025 (the technical effective date would be July 9, 2025, or 30 days after adoption with bills being prorated for this initial month by nine days or 69 cents for a single-family customer).

Under this rate structure, the average bi-monthly bill for single-family residential wastewater customers would increase from $25.64 to $30.20 in 2025; for a total monthly increase of $2.28 per month. The City’s wastewater rates are near the lowest in the county and the two agencies in the county with lower rates (Arroyo Grande and Oceano) are presently undergoing water and Staff Report: Proposition 218 Hearing and Adoption of Wastewater Rate Structure Page 2 June 9, 2025
sewer rate studies to increase their rates with Oceano’s proposed sewer rates scheduled for consideration on June 11. If the proposed rate increases are adopted, the City’s wastewater rates will continue to be among the lowest in the county.

On April 14, 2025, Council authorized the Proposition 218 notices following a mailer sent out by the City about the sewer system needs and proposed rate increase to each property owner and customer. Staff subsequently mailed a notice shown in Attachment 2 in both English and Spanish to all property owners and wastewater customers on April 25 notifying them of the rate study, planned rate increases, and provided a protest form for simplified remittance to the City. In addition, staff held informational sessions on May 8 and May 28 to further inform the public and answer questions about the proposed increases and provided presentations on this topic at the City Talk community forum and South County Chambers of Commerce “Rise and Shine” events this spring. Staff also met with community members about the proposed rate increases and developed a “frequently asked questions” page on the City’s website with responses to common questions raised: Wastewater (Sewer) Rates | Grover Beach, CA – Official Website.

To be valid, a signed written protest must be received by the City Clerk or submitted during the public protest hearing and represent an address with current wastewater service. Only one protest per address can be accepted and no protest will be accepted or valid if submitted after the close of the public protest hearing. At the end of the public hearing, the City Clerk will tally and report the qualifying written protests and the Council will then certify whether the written protests opposing the increases meet the 50% plus 1 threshold required to constitute a majority protest. If a majority protest does not exist, the Council may consider and adopt the Resolution shown in Attachment 1 to amend the Master Fee Schedule reflecting the updated wastewater rate structure.

The protest threshold for Grover Beach is 2,681 or 50% of parcels in the city plus 1.

If the proposed rate structure is adopted, staff intends to quickly begin the process of debt issuance to finance capital projects for an initial amount of up to $4.2 million in improvements related to CIP Project 5002. Beginning this effort immediately enables the initial sewer project to be constructed this fall along with a related Measure K-14 street repair project in early 2026.

This project is largely similar to the scope of work introduced to Council on January 12, 2024 prior to putting this project on hold given the uncertainty in sewer rate funding with the citizen initiative Measure G-24. Staff intends to return to Council on July 28, 2025 for adoption of the Initial Resolution which provides for the appointment of a financing team as well as direction to the City Manager to develop terms for the execution of a bond. Staff will thereafter work with the financing team to determine the best type of issuance (private or public) and remaining terms before returning to Council for presentation and approval of the bond issuance by September 2025. Debt servicing for bond monies would be commenced in FY 2026-27 at an estimated amount of $392,900.

Lastly, the Council provided direction during the May 12th meeting to consider alternative timeframes for General Fund repayment of the prior interfund loans from the Wastewater Fund in addition to the six-year timeframe reflected in the Wastewater Rate Study and Proposed Budget.

This information will be presented at the June 9th meeting as part of both the Proposition 218 hearing and the subsequent budget hearing for the Council’s consideration and direction.

FISCAL IMPACT
The recommended rate increases would result in additional Wastewater Fund revenue of $186,514 beginning in FY 2025-26 and would result in $1,345,428 of additional revenue in FY 2029-30 of the plan. The proposed rate increases will provide sufficient funding to support regular Staff Report: Proposition 218 Hearing and Adoption of Wastewater Rate Structure Page 3 June 9, 2025
operations and maintenance of the sewer system, as well as necessary capital projects for sewer system upgrades.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Conduct a Proposition 218 public hearing and determine the official number of written protests received on the proposed wastewater rate structure; and if the number of valid protest letters are below 50% plus one of parcels, approve the proposed rate structure and adopt the Resolution amending the Master Fee Schedule for wastewater rates effective July 1, 2025.; or

2. Do not adopt the Resolution amending the Master Fee Schedule for wastewater rates; or

3. Provide alternate direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. A Proposition 218 Hearing Notice was mailed on April 25, 2025 to all utility customers and registered property owners or customers who receive wastewater services. Information regarding the proposed rates and a link to the online copy of the Utility Rate Study, as well as other related information, was posted on the City website.

A Public Hearing Notice was also published in New Times on May 29. Additionally, staff have conducted community forums as outreach sessions on May 7 and May 28 and posted questions and answers to the City website.

Attachments

1. Resolution to amend the Master Fee Schedule

2. Proposition 218 public notice
RESOLUTION NO. 25-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,

CALIFORNIA, AMENDING THE MASTER FEE SCHEDULE FOR

WASTEWATER RATES
WHEREAS, the City Council of the City of Grover Beach has created a Master Fee Schedule by adopting Resolution No. 25-XX; and
WHEREAS, notice of the Public Hearing to consider proposed adjustments to the Master Fee Schedule for Wastewater Rates was mailed at least 45 days prior to the scheduled Public Hearing as required by state law (Cal. Const. art. XIIID, §6); and WHEREAS, on June 9, 2025, the City Council conducted a Public Hearing, considered testimony, and at the conclusion of the protest hearing determined that the number of valid written protests received was less than 50% plus one of the total number parcels subject to the fee in the City and approved the recommendations in the Utility Rate Study regarding adjustments to Wastewater Rates.

NOW, THERFORE, THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, DOES DELARE, DETERMINE, AND ORDER AS FOLLOWS:

THAT the Master Fee Schedule be amended as set forth in Exhibit “A” attached to this Resolution; and
THAT the fees listed in Exhibit “A” of this Resolution shall become effective as on the various dates as listed.

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 9TH day of June 2025.

KASSI DEE, MAYOR
Attest:

WENDI B. SIMS, CITY CLERK
Attachment 1
July 1 2025 July 1 2026 July 1 2027 July 1 2028 July 1 2029 Wastewater Rates (Monthly)
Boarding house (per unit) $ 18.31 $ 21.57 $ 25.41 $ 29.93 $ 35.26 Plus per bedroom charge $ 11.78 $ 13.88 $ 16.35 $ 19.26 $ 22.69 Car washes & Laundromats minimum charge $ 7.29 $ 8.59 $ 10.12 $ 11.92 $ 14.04 Per 100 cubic feet above minimum $ 2.39 $ 2.82 $ 3.32 $ 3.91 $ 4.61 Church $ 17.74 $ 20.90 $ 24.62 $ 29.00 $ 34.16
Plus per parsonage or dwelling unit $ 15.10 $ 17.79 $ 20.96 $ 24.69 $ 29.08 Commercial establishment (Public Place) (Up to 5 Fixtures) $ 17.72 $ 20.87 $ 24.58 $ 28.96 $ 34.11 Each additional fixture $ 4.85 $ 5.71 $ 6.73 $ 7.93 $ 9.34 Factories, industrial plants, with 20 or less employees $ 11.92 $ 14.04 $ 16.54 $ 19.48 $ 22.95 Each additional employee over 20 $ 1.37 $ 1.61 $ 1.90 $ 2.24 $ 2.64 Hotel, motel, auto court or lodge (per unit) $ 18.20 $ 21.44 $ 25.26 $ 29.76 $ 35.06 Mobile home (per space) $ 15.10 $ 17.79 $ 20.96 $ 24.69 $ 29.08 Restaurants minimum charge $ 2.52 $ 2.97 $ 3.50 $ 4.12 $ 4.85 Per 100 cubic feet against minimum $ 4.85 $ 5.71 $ 6.73 $ 7.93 $ 9.34 Schools minimum annual charge per ADA and employees $ 3.90 $ 4.59 $ 5.41 $ 6.37 $ 7.50 Schools with Cafeterias additional
Per ADA and employees $ 1.63 $ 1.92 $ 2.26 $ 2.66 $ 3.13 Single-Family dwelling unit $ 15.10 $ 17.79 $ 20.96 $ 24.69 $ 29.08 Theater, clubhouse or place of amusement $ 17.72 $ 20.87 $ 24.58 $ 28.96 $ 34.11 Travel trailer and recreation vehicle space $ 7.77 $ 9.15 $ 10.78 $ 12.70 $ 14.96 Multi-Family, Two or more dwellings (per unit) $ 15.10 $ 17.79 $ 20.96 $ 24.69 $ 29.08 Plus Per Each coin-operated washer $ 3.30 $ 3.89 $ 4.58 $ 5.40 $ 6.36 $ 0.47 $ 0.55 $ 0.65 $ 0.77 $ 0.91
Storm Water Fee (monthly) $ 4.85 $ 4.85 $ 4.85 $ 4.85 $ 4.85 Excess Discharge per 100 cubic feet (3,000 Cubic Feet per GBMC 7182)

CITY OF GROVER BEACH

MASTER FEE SCHEDULE

ADMINISTRATIVE SERVICES DEPARTMENT
Rates Effective
Description
Higher rate where heavy discharge or character of wastewater discharge warrants
Effective: 7/1/25 9
Exhibit A
1 NOTICE TO PROPERTY OWNERS AND UTILITY CUSTOMERS

REGARDING PUBLIC HEARING

FOR PROPOSED WASTEWATER RATE INCREASES
Hearing Date & Time: June 9, 2025, 6:00 PM
Hearing Location: City Hall, 154 South 8th Street
Grover Beach, CA 93433
Why are you receiving this notice?
The City of Grover Beach (“City”) is mailing this notice to you because you are a wastewater customer or are the owner of record of a property that receives wastewater service. This notice describes proposed changes to the wastewater rates and gives information about a public hearing to be held on June 9, 2025, at City Hall, 154 South 8 th Street, Grover Beach, CA, 93433 regarding these proposed changes in accordance with California Proposition 218 Process.

What do wastewater rates fund?
The City provides wastewater service to residential, and commercial customers. Monthly wastewater rates charged to system users (“Customer”) on a bi-monthly basis are the primary source of revenue for the wastewater system. These funds are dedicated exclusively to maintaining, improving and operating the wastewater system.

Customer rates support several essential components including daily operations and routine maintenance of collection systems, critical infrastructure improvements and replacement projects to ensure system reliability, administrative costs necessary for effective system management, and building adequate financial reserves to address emergencies and unexpected repairs. This careful financial planning ensures the wastewater utility can provide reliable wastewater services now while preparing for future community needs.

Why are rate increases needed?
Current rates do not provide adequate funding for long-term operation and maintenance expenses and capital projects. The City engaged a consultant to perform a study of the City’s wastewater funds, and to recommend user rates designed to meet the City’s financial obligations, including operating, debt service costs, funds for needed capital projects, and maintenance of cash reserves. The rate structures developed in the study comply with federal, state, and City laws and guidelines. They are consistent with industry practices and are equitable among the City’s customer classes. At the City Council Meeting on March 24, 2025, the rate study was presented which included recommended wastewater utility rates. Subsequently, the City Council approved scheduling the Proposition 218 hearing for June 9, 2025.

The proposed rates are based on a comprehensive utility rate study and financial plan to ensure a reliable and functional wastewater system. The City will annually review revenues and expenditures for the wastewater funds to ensure that sufficient and appropriate revenues are collected to effectively provide for the short and long-term service needs of the community. The rate study report providing the rate development methodology is available at City Hall and on the City’s website at www.groverbeach.org.

New rates
To provide necessary funding to operate and carry out long-term improvements to the wastewater system, the City is proposing to implement new rates as a series of annual revenue adjustments over the next five years.

The following tables summarize the proposed water and wastewater rates.

Attachment 2
2 Wastewater Current and Proposed Monthly Charges
Impact on your bill
For the proposed rates effective July 1, 2025, the wastewater portion of the bill would increase from $25.64 to $30.20 bi monthly for an increase of $4.56 per billing cycle or $2.28 per month for a single-family dwelling unit.

Example wastewater calculations using proposed July 1, 2025:

City Wastewater:.................................. $15.10 per Month per Dwelling Unit X 2 Months X 1 Dwelling Unit = $30.20

1.0% Utility Tax: ..................................................................................................................................................$.31 SSLOCSD Charge...........................................................................................................................................$50.96 Total: $81.47
How do you file a protest or participate in the public hearing? The City Council will consider the new rate structure and proposed revenue increase at a public hearing on Monday, June 9 at 6:00 p.m. at City Hall, 154 South 8th Street, Grover Beach, CA, 93433. You are invited to present oral or written testimony at the public hearing. 3 Any property owner, or tenant directly liable for the proposed fee or charge, of a parcel subject to the proposed rates may submit a written protest to the proposed rate revisions. If written protests are filed with respect to a majority of the affected property parcels, the proposed rate revisions will not be adopted.

A written protest must contain the street address or Assessor's Parcel Number (APN) for the parcel(s) or utility service address with respect to which the protest is made. The protest must also be signed by the property owner or tenant directly liable for the proposed fee or charge (only one protest per APN will count). Protests may be mailed or hand delivered to the City’s offices at 154 South 8th Street, Grover Beach, CA, 93433. Protests may also be delivered to the City Clerk at the public hearing. To be valid, a signed written protest must be received by the City Clerk at or before the time of the protest hearing.

Two information sessions will be held to provide opportunities for members of the Grover Beach Community to learn more about the rate increases as well as ask questions. Please see details below.

Information Session #1 Information Session #2
Date: May 8, 2025, 5:30 PM – 6:30 PM Date: May 28, 2025, 5:30 PM – 6:30 PM Location: City Hall Location: Ramona Park Community Center I, __________________________________________, oppose the proposed sewer rate increases. (Please Print Name)
 I am a property owner.
 I am a tenant of the property who is directly liable for payment of the proposed fee (account holder).

Assessor’s Parcel Number or Account Holder Address:
_______________________________________________________ Signature: _______________________ Date: ________________ Proposed Sewer Rate Protest Form
1 AVISO A LOS PROPIETARIOS Y USUARIOS DE SERVICIOS
PÚBLICOS SOBRE LA AUDIENCIA PÚBLICA

RELATIVA AL PROPUESTO AUMENTO DE TARIFAS DE AGUAS

RESIDUALES
Fecha y hora de la audiencia: 9 de junio, 2025, 6:00 PM Lugar de la audiencia: Consejo Municipal, 154 South 8th Street Grover Beach, CA 93433
¿Por qué está recibiendo este aviso?
La Ciudad de Grover Beach (“Ciudad”) le envía este aviso por correo porque usted es un cliente del servicio de aguas residuales o es el propietario registrado de una propiedad que recibe este servicio. Este aviso describe los cambios propuestos en las tarifas de aguas residuales y proporciona información sobre una audiencia pública que se llevará a cabo el 9 de junio de 2025 en el Consejo Municipal, ubicado en 154 South 8th Street, Grover Beach, CA, 93433, con respecto a dichos cambios propuestos, de conformidad con el proceso establecido por la Propuesta 218 de California.
¿Para qué se utilizan los fondos de las tarifas de aguas residuales? La Ciudad proporciona servicios de aguas residuales a clientes residenciales y comerciales. Las tarifas mensuales por este servicio, que se cobran a los usuarios del sistema (“Cliente”) de manera bimestral, constituyen la principal fuente de ingresos para el sistema de aguas residuales. Estos fondos están destinados exclusivamente al mantenimiento, mejora y operación del sistema. Las tarifas que pagan los clientes respaldan varios componentes esenciales, incluyendo las operaciones diarias y el mantenimiento rutinario de los sistemas de recolección, mejoras e inversiones en infraestructura crítica para garantizar la confiabilidad del sistema, costos administrativos necesarios para una gestión eficaz y la creación de reservas financieras adecuadas para hacer frente a emergencias y reparaciones imprevistas. Esta cuidadosa planificación financiera garantiza que el sistema de aguas residuales pueda ofrecer un servicio confiable en el presente, al mismo tiempo que se prepara para las necesidades futuras de la comunidad.
¿Por qué se necesitan aumentos en las tarifas?
Las tarifas actuales no proporcionan fondos adecuados para los gastos operativos y de mantenimiento a largo plazo, así como para los proyectos de capital. La Ciudad contrató a un consultor para realizar un estudio de los fondos de aguas residuales de la Ciudad y recomendar tarifas de usuarios diseñadas para cumplir con las obligaciones financieras de la Ciudad, incluyendo los costos operativos, el servicio de la deuda, los fondos para proyectos de capital necesarios y el mantenimiento de reservas de efectivo. Las estructuras de tarifas desarrolladas en el estudio cumplen con las leyes y directrices federales, estatales y locales. Son consistentes con las prácticas de la industria y son equitativas entre las distintas clases de clientes de la Ciudad. En la reunión del Concejo Municipal del 24 de marzo de 2025, se presentó el estudio de tarifas, el cual incluyó las tarifas recomendadas para el servicio de aguas residuales. Posteriormente, el Concejo Municipal aprobó la programación de la audiencia de la Proposición 218 para el 9 de junio de 2025.

Las tarifas propuestas se basan en un estudio integral de tarifas de servicios públicos y un plan financiero para garantizar un sistema de aguas residuales confiable y funcional. La Ciudad revisará anualmente los ingresos y gastos de los fondos de aguas residuales para asegurarse de que se recauden ingresos suficientes y apropiados para cubrir eficazmente las necesidades de servicio a corto y largo plazo de la comunidad. El informe del estudio de tarifas, que proporciona la metodología para el desarrollo de las tarifas, está disponible en el Consejo Municipal y en el sitio web de la Ciudad en www.groverbeach.org. 2 Nuevas tarifas
Para proporcionar los fondos necesarios para operar y llevar a cabo mejoras a largo plazo en el sistema de aguas residuales, la Ciudad propone implementar nuevas tarifas como una serie de ajustes anuales de ingresos durante los próximos cinco años. Las siguientes tablas resumen las tarifas propuestas para el agua y las aguas residuales.

Cargos Mensuales Actuales y Propuestos de Aguas Residuales Impacto en su factura
Para las tarifas propuestas que entrarán en vigor el 1 de julio de 2025, la parte correspondiente a las aguas residuales en la factura aumentaría de $25.64 a $30.20 bimestralmente, lo que representa un aumento de $4.56 por ciclo de facturación o $2.28 por mes para una unidad de vivienda unifamiliar.

Ejemplo de cálculos de aguas residuales utilizando las tarifas propuestas a partir del 1 de julio de 2025:

Aguas Residuales de la Ciudad: $15.10 por mes por unidad de vivienda × 2 meses × 1 unidad de vivienda = $30.20
Impuesto sobre servicios públicos del 1.0%: ....................................................................................................$.31 Cargo de SSLOCSD.......................................................................................................................................$50.96 Total: $81.47
¿Cómo presentar una protesta o participar en la audiencia pública? 3 El Concejo Municipal considerará la nueva estructura tarifaria y el aumento propuesto de los ingresos en una audiencia pública el lunes 9 de junio a las 6:00 p.m. en el Consejo Municipal, ubicado en 154 South 8th Street, Grover Beach, CA, 93433. Se invita a los interesados a presentar testimonios orales o escritos en la audiencia pública.

Cualquier propietario de una propiedad o inquilino directamente responsable de la tarifa o cargo propuesto, de una parcela sujeta a las tarifas propuestas, puede presentar una protesta por escrito a las revisiones tarifarias propuestas. Si se presentan protestas por escrito respecto a la mayoría de las parcelas afectadas, las revisiones tarifarias propuestas no serán adoptadas.

Una protesta por escrito debe contener la dirección del inmueble o el Número de Parcela del Asesor (APN) de la(s) parcela(s) o la dirección del servicio de utilidad en relación con la cual se presenta la protesta. La protesta también debe estar firmada por el propietario de la propiedad o el inquilino directamente responsable de la tarifa o cargo propuesto (solo una protesta por APN será válida). Las protestas pueden ser enviadas por correo o entregadas en persona en las oficinas de la Ciudad, ubicadas en 154 South 8th Street, Grover Beach, CA, 93433. Las protestas también pueden ser entregadas al Secretario de la Ciudad durante la audiencia pública. Para ser válidas, las protestas escritas y firmadas deben ser recibidas por el Secretario de la Ciudad en o antes de la hora de la audiencia de protesta.

Se llevarán a cabo dos sesiones informativas para brindar oportunidades a los miembros de la comunidad de Grover Beach de obtener más información sobre los aumentos de tarifas y hacer preguntas. A continuación se detallan los detalles.

Sesión Informativa #1 Sesión Informativa #2
Fecha: May 8, 2025, 5:30 PM – 6:30 PM Fecha: May 28, 2025, 5:30 PM – 6:30 PM Lugar: City Hall Lugar: Ramona Park Community Center

Yo, __________________________________________, me opongo al aumento propuesto de las (Favor de escribir el nombre en letra de imprenta)
tarifas de alcantarillado.
 Soy propietario.
 Soy inquilino de la propiedad y responsable directo del pago de la tarifa propuesta (titular de la cuenta).

Número de Parcela del Asesor o Dirección del Titular de la Cuenta:
______________________________________________________
Firma: _______________________ Fecha: ________________
Formulario de Protesta de Tarifa de Alcantarillado
Propuesta
Agenda Item No. 4

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: June 9, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: FY 2025-27 Proposed Budget and FY 2025-30 Capital Improvement Program

RECOMMENDATION
Conduct a public hearing to review the FY 2025-27 Proposed Budget and FY 2025-30 Capital Improvement Program and provide direction to staff to finalize the two-year budget for adoption on June 23, 2025.

BACKGROUND
The FY 2025-27 Proposed Budget and FY 2025-30 Five-Year Capital Improvement Program (CIP) have been released to the Council and posted on the City’s website and included as Attachment

1. The Council will hold a public hearing at the June 9th meeting to receive public comments on the Proposed Budget and provide Council direction prior to the adoption of the budget scheduled for the June 23rd meeting.

The total proposed citywide budget for FY 2025-26 is $37.56 million, including $21.75 million in the General Fund including the Equipment Replacement Fund (ERF), $6.01 million in Enterprise Funds including Water and Wastewater Funds, and $5.17 million in Special Revenue Funds. The five-year CIP includes $7.94 million in funding for projects in FY 2025-26. The total proposed citywide budget for FY 2026-27 is $30.27 million, including $19.76 million in the General Fund and Equipment Reserve Fund, $5.7 million in Enterprise Funds including Water and Wastewater Funds, and $4.46 million in Special Revenue Funds. The five-year CIP includes $3.85 million in funding in FY 2026-27.

Highlights of the budget are identified in the City Manager’s Letter of Transmittal which is included in the first section of the Proposed Budget document and information on the City’s revenues and expenditures is incorporated throughout the document. The FY 2025-27 Proposed Budget is a balanced budget in both fiscal years that maintains current service levels while ensuring prudent reserves for financial uncertainties, emergencies, or unforeseen needs. Below is information on the City’s five most significant general revenue sources:
• Sales Tax– Projections assume that sales tax revenues increase 1-2% in the next year.

There is greater revenue forecasted through the local City-specific measures than in General Sales tax which is continuing to see impacts related to reallocation of revenues based on distribution centers for large online retailers. • Property Tax - Projected growth of 5% in FY 2025-26 and FY 2026-27 given historical trends and completed and upcoming developments.
• Cannabis Tax – Projections assumes flat cannabis tax in FY 2025-26 with revenues at $1.07 million.

Staff Report: FY 2025-27 Proposed Budget and FY 2025-30 Five Year CIP Page 2 June 9, 2025
• Transient Occupancy Tax (TOT) – Budget assumes revenues will rise to $1.3 million by FY 2026-27 based on opening of the new hotel at 950 El Camino Real in fall 2025. • Franchise Fees – Franchise fees for FY 2025-26 of $965,000 include the new transoceanic fiber optic cable revenue of $100,000 that was delayed for the last two fiscal years but is expected to be collected next year. For FY 2026-27, the proposed franchise fees of $1,023,000 include total fiber optic cable revenue of $300,000.

In terms of expenditures, the Proposed Budget includes a General Fund contribution of $433,000 to the ERF in FY 2025-26 and $100,000 to the CIP. In FY 2026-27, the ERF contribution will be $354,000 and the CIP contribution $230,000. The Proposed Budget for the General Fund also includes operating budget recommendations of $340,478 in additional expenses for FY 2025-26 and $270,000 in FY 2026-27. The table below includes the recommended augmentations:

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
The General Fund operating budget also includes an increase to the Five Cities Fire Authority contract of 3.3% in FY 2025-26 for a total estimated cost of approximately $3 million with an additional 3% for FY 2026-27. Additionally, 3% cost of living adjustments with all the City’s bargaining and employee groups have been included in salary calculations for FY 2025-27.

The Proposed Budget for FY 2025-27 represents a significant investment in City resources to implement Council Goals and address community needs while maintaining sufficient reserves.

The proposed General Fund budget for FY 2025-26 is balanced with a surplus of approximately $61,009 and ending reserves of approximately $5.43 million or 30% of operating expenditures.

For FY 2026-27, the projected General Fund budget is balanced with a surplus of approximately $47,228 and ending reserves of approximately $5.31 million or 28% of operating expenditures.

The budget for both the Water and Wastewater Enterprise Funds factor in additional revenue from the final rate increases under the current 2021 rate structure which goes 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 including $100,000 in 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 capital projects are not budgeted at this time given a lack of sufficient funding and there are no wastewater capital projects in the CIP given a lack of funding. However, if the proposed wastewater rate structure is adopted by the Council at the Proposition 218 hearing on June 9, staff will amend the FY 2025-27 budget to allocate funding for wastewater CIP projects beginning in next fiscal year as part of the Council’s adoption of the budget scheduled for the June 23rd meeting.

Staff Report: FY 2025-27 Proposed Budget and FY 2025-30 Five Year CIP Page 3 June 9, 2025
This information will be presented at the June 9th meeting as part of both the budget hearing and the preceding Proposition 218 hearing for the Council’s consideration and direction.

FISCAL IMPACT
There is no direct fiscal impact from this agenda item as the budget will be approved at a subsequent meeting. The FY 2025-27 Proposed Budget contains comprehensive financial information at the fund level (Fund Information section) and departmental and program information (Department Budgets).

ALTERNATIVES
The Council has the following alternatives to consider:

1. Conduct a public hearing to review the FY 2025-27 Proposed Budget and FY 2025-30 Capital Improvement Program and provide direction to staff to finalize the budget for adoption on June 23, 2025; or

2. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. A public hearing notice was published in New Times and posted accordingly in the locations for public notices.

Attachments

1. FY 2025-27 Proposed Budget

CITY OF GROVER BEACH
FISCAL YEAR 2025-26 & 2026-27

PROPOSED BUDGET
Attachment 1

TABLE OF CONTENTS

1.0 City Overview4

1.1 City Manager's Letter of Transmittal5

1.2 City Council Goals8

1.3 Major City Goals and Workprograms9

1.4 City Council 16

1.5 Executive Team 17

1.6 Orgizational Chart 18

1.7 Budget Timeline 19

1.8 Profile of Grover Beach 20

1.9 Demographics 23

2.0 Financial Trends 28

2.1 Revenue Trends 29

2.2 Expense Trends 34

3.0 Budget Overview 37

3.1 Budget Summary 38

3.2 Capital 48

3.3 Transfers In 49

3.4 Transfers Out 50

4.0 Department Budgets 51

4.1 Administrative Services 52

4.2 City Manager's Office 58

4.3 Community Development 64

4.4 Police Department 70

4.5 Public Works 76

4.6 Non-departmental 83

5.0 Funds Overview 86

5.1 General Fund 87

5.1.1 Equipment Replacement Fund 89

5.2 Street Construction Designated Fund (K-14) 90

5.3 Gas Tax Fund 91

5.4 Road Maintenance and Rehabilitation Account 92

5.5 Local Transportation Fund (LTF) 93

5.6 Public Safety Grant Fund 94

5.7 Parks Construction Fund 95

5.8 Transportation Development Impact Fee Fund 96

5.9 Law Enforcement Development Impact Fee Fund 97

5.10 Administrative Development Impact Fee Fund 98

5.11 Fire Development Impact Fee Fund 99

5.12 Stormwater Development Impact Fee Fund 100

5.13 Wastewater Development Impact Fee Fund 101

5.14 Parks Facilities Development Impact Fee Fund 102

5.15 Recreation Facilities Development Impact Fee Fund 103

5.16 Water Development Impact Fee Fund 104

5.17 Subsidized Taxi Fund 105

5.18 CDBG - Non Entitlement Fund 106

5.19 Home Grant Fund 107

5.20 State Mandated ADA Fund 108

5.21 Trust and Agency 109

5.22 Capital Projects Fund 110

5.23 Underground Utilities Fund 111

5.24 Water Fund 112

5.25 Water Conservation Fund 113

5.26 Wastewater Fund 114

6.0 CIP 115

6.1 CIP Plan 116

7.0 Appendix 158

7.1 Budget Policies 159

7.2 Gann Limit Calculation 163

7.3 Glossary 164

CITY OVERVIEW

1.0 City Overview
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 4 City Manager’s Letter of Transmittal
Honorable Mayor and Council Members:

I am pleased to present the total budget of $37.57M for the City of Grover Beach for the upcoming fiscal year 2025-26 including a General Fund budget of $21.37M. As we close our current fiscal year 2024-25, I would like to take a moment to recognize our substantial progress and accomplishments in addressing community needs and implementing the Council’s policy direction, while acknowledging continued challenges we face.

Over the past fiscal year, economic impacts of high inflation and national economic uncertainty continued to be difficult for the local business community, residents and the City. However, the City has made significant strides in building an even stronger and better community in alignment with Council Goals. 92% of the tasks identified for FY 2024-25 Major City Goals at mid-year were completed or in progress. Streets continue to be repaired throughout Grover Beach as we have improved more than 70% of local streets through Measure K-14 bond funding approved by voters in 2014 and are on track to complete construction on the West Grand Avenue Streetscape Project between 4 and 8 Streets by May. Economic development and community promotion continued to be one of the City’s top goals and the City worked to expand the City’s tourism marketing and oversaw the construction at the hotel project located at 950 El Camino Real, as well as permitting processes for other hotel projects including the Grover Beach Lodge.

With regards to housing, the City has overseen construction of two significant mixed-use developments at West Grand Avenue and 4 Streets. These developments include 402 West Grand Avenue, which will provide 37 condominium housing units and is set to be completed this fiscal year, and 401 West Grand Avenue, which will provide an additional 59 condominium housing units, set to be completed in FY 2025-26. Both developments will also provide street-level commercial space to increase the vibrancy of this important intersection in the heart of the city. The City also celebrated the beginning of construction at a 53-unit affordable housing project on formerly vacant City-owned and private property near the corner of South 13 Street and West Grand Avenue in partnership with People’s Self-Help Housing and the Housing Authority of San Luis Obispo. The City also engaged in building or plan review for mixed-use developments at 197 West Grand Avenue, providing 23 residential units; 1598 El Camino Real, which will provide 7 single-family residences, as well as 60 hotel rooms; and 1220 Long Branch Avenue, which will provide 10 residential town homes.

Addressing homelessness also continues to important for the City with substantial progress this year on creating additional shelter space for unhoused individuals. This includes the continued operation of the Cabins for Change project on 16 Street and Long Branch Avenue, in partnership with the County of San Luis Obispo and the 5Cities Homeless Coalition (5CHC), which is providing temporary housing and wraparound services for 20 unhoused individuals, as well as the Balay Ko on Barca Casitas project, which utilized City property purchased with American Rescue Plan Act funds at 4 Street and Barca Street pursuant to a long-term lease with 5CHC to operate a facility there and provides temporary housing and wraparound services for an additional 30 unhoused individuals. Along with these efforts, the City continues to enforce the camping ordinance adopted in March 2023 to regulate camping in public and private spaces in the City, within legal limits, which has been successful in reducing encampments and their impacts in our public spaces.

Lastly, public safety is a core responsibility of local government and we have made significant strides this past year in filling vacant positions for the Police Department, continuing to implement a progressive health and wellness program for Police Department staff and upgrading and expanding our police technology. The City received over $500,000 in federal grant funding for police technology which provided for an expansion of our community camera program, new in-car video recorders, license plate readers and multi-band radios for the Police Department. The City has also worked with the City of Arroyo Grande as members of the Five Cities Fire Authority (FCFA) to implement a contract with the County of San Luis Obispo for the FCFA to provide fire and emergency medical services to the Oceano service area, along with hired five new firefighters pursuant to that contract and began work on a Standards of Coverage analysis.

In addition to these achievements, the City has continued its prudent fiscal stewardship maintaining a strong financial foundation over this past year. The City’s revenues, continue to be strong overall, however increases are slowing compared to prior years. Property tax is the City’s highest revenue source with modest sales tax increases anticipated after a decrease in those revenues in FY 2024-25. Cannabis revenues have continued to decline since their high in 2020, though this tax is still projected to produce just over $1 million in general revenue to support City projects and services. The City’s revenues coupled with the strong fiscal management of City departments are projected to produce a year-end General Fund surplus of approximately $61,009 in FY 2025-26 with ending reserves totaling just over $5.43 million or 30% of operating expenditures. This level of reserves is higher than the Council’s policy of maintaining reserves of 25% of th th
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1.1 City Manager's Letter of Transmittal

Page 5 ends

operating expenditures and provides sufficient reserves for emergencies or unforeseen needs given continued uncertainty in the economy.

For Fiscal Year 2026-27, the City anticipates a smaller surplus of $47,227 and ending reserves of $5.31M.

FY 2025-26 Budget Overview
The budget for the fiscal year 2025-26 reflects a balanced budget and healthy reserves, but with future financial challenges. The City continues to make significant community investments made possible by projected General Fund revenues as highlighted below:

Sales Tax - Projections were determined using the most recent report from the City’s sales tax consultant which estimates that sales tax revenues will remain roughly flat in next FYs 2025-26 and a slight increase of 1 to 2% in FY 2026-27.

Property Tax - The most recent estimates project a 5% increase next FY 2025-26. Property tax has been a consistent revenue source for the City and average annual increases have been 4.9% over the past five years.

Cannabis Tax - Projections for FY 2025-26 of $1.07M with no increase from FY 2024-25 based on revenues received through the third quarter. Staff continues to recommend caution with cannabis tax revenues given continued market uncertainty.

Transient Occupancy Tax (TOT) - TOT is projected to increase to $1.33M totaling approximately $1 million in revenues in FY 2024-

25. Franchise Tax – Franchise fees for FY 2025-26 of $965,000 include the new transoceanic fiber optic cable revenue of $100,000 that has been delayed but is expected to be collected over the next year.

In terms of expenditures, the budget for FY 2025-27 continues to make significant investments in addressing community needs in alignment with the Council Goals. The budget includes a General Fund contribution to capital improvements of $100,000 in FY 2025-26 as well as $433,000 in General Fund Reserves transfers for allocation to the Equipment Replacement Fund. It is notable that the budget does not include funding for several necessary capital projects for the City's water and sewer systems, as the Water and Wastewater Funds do not have sufficient funding for these projects, given the current rate structures. The City will continue to work on review and updating rates that will support the critical operations, maintenance and critical capital project needs for these systems.

Overall, the General Fund budget for FY 2025-26 will be balanced with revenues of $21,428,114 and expenditures of $21,367,105 for a surplus of approximately $61,009. The budget is anticipated to produce ending reserves of approximately 30% of operating expenditures in FY 2025-26 compared with the Council’s reserve policy of 25%. This level of reserves reflects the City’s cautious fiscal management and provides sufficient reserves for emergencies or unforeseen needs given economic uncertainties. Long-term projections show a balanced budget for the General Fund's operating and capital expenditures, though it will be important to maintain sufficient reserves.

FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Actual Estimated Budget Budget
Begining Reserves $7,488,213 $5,555,974 $5,580,433 $5,453,942 Revenues $25,556,813 $18,318,279 $21,428,114 $19,387,502 Exependitures $24,298,053 $18,106,320 $21,367,105 $19,340,275 Annual Surplus/(Deficit) $1,258,761 $211,959 $61,009 $47,228 CIP Carryover ($3,191,000)
Wastewater Fund
Repayment
($187,500) ($187,500) ($187,500)
Ending Reserves $5,555,974 $5,580,433 $5,453,942 $5,313,669 As expressed throughout this letter, the budget for FY 2025-27 represents a continued investment in City resources to implement Council Goals and address community needs while maintaining fiscal prudence including sufficient reserves. The community’s investment as expressed through the passage of Measure F-20 in November 2020 and the Council’s leadership in establishing the commercial cannabis industry to create jobs and generate tax revenue have positioned the City to carry out an extensive list of improvements that support and

1.1 City Manager's Letter of Transmittal
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 6 enhance the quality of life in our community. However, there continue to be uncertainties and challenges facing the City described below, including the overall economic environment, continued uncertainties with cannabis revenue, and fostering a continued sense of community in a time of change and uncertainty.

Overall Economic Environment
The City remains in a strong financial position, despite inflationary cost increases and the slowing of revenue increases. However, there are significant regional and global economic uncertainties to navigate such as global economic impacts from geopolitical circumstances, continued inflation that affects the cost of living along with supplies and equipment, housing, utilities, transportation, childcare, as well as the slowing of revenues countywide. We also need to be mindful that some members of our community are struggling with the depth of specific economic impacts in certain industries. The City has demonstrated a high degree of empathy and support for community members and this effort is important as we continue to navigate economic impacts.

Continued Uncertainties with Commercial Cannabis Revenue This is a continuing area of uncertainty for the City given the nature of the commercial cannabis industry as it continues to transition to a fully legal and stable industry statewide. The City’s stable financial outlook has been due in part to the revenues from the commercial cannabis industry along with inherent stability in one of the City’s largest revenue sources (property tax revenues). The commercial cannabis tax is expected to generate $1 million in revenues in FY 2024-25 and cannabis-related sales tax revenues also contribute to the City’s financial position. Grover Beach is a leader in establishing a successful commercial cannabis industry and the annual tax revenues continue to outperform initial estimates prior to establishing the industry. It is anticipated that cannabis revenues are stabilizing and are predicted to remain at $1 million in both FY 2025-26 and FY 2026-27. However, there are numerous uncertainties with these revenues given the tenuous nature of the legal cannabis industry and market implications with nearby cities establishing cannabis businesses, which point to the need to consider opportunities such as onsite consumption lounges. The City continues to take a cautious approach with the use of additional general revenues generated from cannabis taxes with these funds primarily used for one-time needs such as capital projects rather than ongoing programs or services.

Fostering a Sense of Community in a Time of Change and Uncertainty Over the past couple of years, we have seen uncertain economic conditions, as well as strong political and societal divisions, exposing divisions throughout the country. The City will continue to model civility and respect in navigating these challenges, as exemplified by the City Council. It is imperative that we continue to foster a continued sense of community to build an even stronger Grover Beach and maintain our practices of responsible governance and civic leadership while finding ways to deepen our engagement with the community we serve.

Conclusion
Grover Beach is a vibrant, resilient, and caring community. The FY 2025-27 budget embodies this sense of opportunity and investment to help our community continue to flourish and prosper as a beautiful community on the Central Coast to live, work, and play. I would like to recognize the outstanding work of our City staff in putting the FY 2025-27 budget together, particularly our Administrative Services Director Nick Szamet and Assistant City Manager Kristin Eriksson. We will continue to address challenges and pursue opportunities with the City Council’s leadership and City staff’s execution and work with our community to create an even stronger Grover Beach for years to come.

Respectfully submitted,
Matthew Bronson
City Manager

1.1 City Manager's Letter of Transmittal

Page 7 ends

City Council Goals and Priorities for FY 2025-27
Since 2017, the City Council has conducted an annual goal-setting process to determine the highest priorities for the City organization to implement in the upcoming fiscal year. On March 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:

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.

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
businesses attraction and retention,
revitalization of commercial areas, and
development of housing opportunities.

Community Infrastructure – Provide for longrange planning and well-maintained infrastructure, including streets, water and
sewer facilities, sidewalks, City facilities and
parks.

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.

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.

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 Council is to be commended for its continued strategic focus on key priority areas to drive City resources and investments to best address community needs. Building on the Council’s goals, staff has developed work programs for FY 2025-27 to specify what will be done over the budget cycle in carrying out those goals. Staff will begin implementing these work programs in the new fiscal year and providing progress reports to Council throughout the year.

1.2 City Council Goals
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 8 City Council Goals and Priorities
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 7 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
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.

Community Development
Department
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 Devlopment
Department
th

1.3 Major City Goals and Workprograms

Page 9 ends

Major Plans and Initiatives Lead Department
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

1.3 Major City Goals and Workprograms
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 10 CITY COUNCIL PRIORITY: WATER AND SEWER

INFRASTRUCTURE AND NEEDED RESOURCES
Major Plans 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
pending further
information
about the Lopez
Lake water
supply
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
Implement study
process including
public outreach and
engagement
Update supply and
demand analysis
including supply
resiliency
information
$300,000 from
Water Fund

1.3 Major City Goals and Workprograms

Page 11 ends

CITY COUNCIL PRIORITY: WATER AND SEWER

INFRASTRUCTURE AND NEEDED RESOURCES
Major Plans Lead Department Key Milestones for
FY 2025-26
Key Milestones for
FY 2026-27
Budget Allocation
Present initial results
and subsequent final
report to Council for
approval
Develop water
rate study for
updated rate
structure, given
the expiration of
the existing rate
structure on
June 30, 2026
Administrative
Services
Department
Review Water Fund
financial need and draft
rate study scope with
Council as part of
water system update
Conduct RFP process
for qualified rate
consultants and
approve contract with
selected consultant
Initiate 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

1.3 Major City Goals and Workprograms
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 12 CITY COUNCIL PRIORITY: REBUILDING COMMUNITY TRUST,

COMMUNITY ENGAGEMENT AND CIVILITY IN PUBLIC

DISCOURSE
Major Plans 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,
and pre-construction
letters for key projects
(300 feet)
Collect year-end
feedback and make
necessary
improvements
$1,000 from
General Fund

1.3 Major City Goals and Workprograms

Page 13 ends

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
along with
the City's
water
system and
supply
City
Manager’s
Office/
Community
Development
Department
Public Works
Department
Develop framework and
potential schedule
Develop specific topics
for planning and building
sessions and water
sessions
Implement initial
sessions and review
results for future
iterations
Consider expanded
version of planning,
building and water
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

1.3 Major City Goals and Workprograms
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 14 Budget Augmentation Requests (BARs)
The table below contains the net cost of BARs included in the proposed budget.

Department BAR 2025-26 2026-27
Administrative Services Cost Allocation Plan 20,000
Community Development
Permitting and 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 for Police
Station
100,000
Grand Total 340,478 270,978
*ongoing costs

1.3 Major City Goals and Workprograms

Page 15 ends

Mayor and City Council
Kassi Dee
Mayor
Robert Robert
Mayor Pro Tem (District 1)
Jules Tuggle
District 2
Kathy McCorry-Driscoll
District 3
Clint Weirick
District 4

1.4 City Council
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 16 Executive Team
Matthew Bronson
City Manager
Kristin Eriksson
Assistant City Manager
Rob Lomeli
City Attorney
Jim Munro
Chief of Police
Nick Szamet
Administrative Services
Director
Megan Martin
Community Development
Director
Greg Ray
Public Works Director

1.5 Executive Team

Page 17 ends

Organizational Chart
City Council
Elected Representatives
Matthew Bronson
City Manager
City Manager's Office
Jim Munro
Chief of Police
Police Department
Greg Ray
Director of Public Works
Public Works Department
Megan Martin
Community Development
Director
Community Development
Department
Nick Szamet
Administrative Services
Director
Administrative Services
Department
Kristin Eriksson
Assistant City Manager
City Manager's Office
Robert Lomeli
City Attorney

1.6 Orgizational Chart
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 18 Budget Timeline
The City of Grover Beach operates on a two-year budget cycle. The proposed budget is for Fiscal Years 2025-26 & 2026-27. In the second year of the two-year cycle, the budget is updated for the second year only. The budgeting process begins in January with the completion of prior year financial statements, updating the five-year financial forecast, and the Council goal-setting process. The budget is customarily presented and approved by the Council in early June. The City's fiscal year commences July 1 and ends June 30.

Major Milestones
 January 28, 2025
Community Priorities Workshop
 February 11, 2025
Mid-year review and forecast presentation to Council
 March 3, 2025
Major Council Goals Workshop
 March 24, 2025
Draft CIP Review by Council
 June 9, 2025
Budget Hearing
 June 23, 2025
Budget Adoption

1.7 Budget Timeline

Page 19 ends

Profile of Grover Beach
Location
The City of Grover Beach is in the southern part of San Luis Obispo County on California’s Central Coast. Grover Beach is bordered by Pismo Beach to the north, Arroyo Grande to the east, unincorporated Oceano to the south, and the Pacific Ocean to the west. The city is adjacent to Pismo State Beach and serves as the northern entry point to the Oceano Dunes State Vehicular Recreation Area. The city covers an area of 2.31 square miles and is midway between San Francisco and Los Angeles approximately ninety miles north of Santa Barbara and 150 miles south of Monterey. The city’s coastal location provides a temperate climate with mild and dry summers and wet winters.

Early History of Grover Beach
Long before the settlement of European explorers, the land now considered the City of Grover Beach was inhabited by the Chumash. The Chumash were skilled fisherman, herbalists, and hunters. Their lands stretched from Paso Robles all the way to the modern city of Malibu.

Spanish explorer Juan Rodriguez Cabrillo was the first European to come to Grover Beach, during his voyage in 1542. However, the area was not officially settled by Europeans until 1772, during the Mission San Luis Obispo de Tolosa. The Mission was founded by Father Junipero Serra and is still standing today.

In 1840, Governor Juan B. Alvarado issued an 8,838-acre land grant known as “El Pizmo Rancho” to Jose Ortega. Ortega was a veteran in the Mexican War of Independence and petitioned the Mexican government for the land grant. In 1846, Ortega sold El Pizmo Rancho to Isaac J. Sparks. Local folklore claims that the land was won from Ortega in a game of Monte. Through the years, the area changed ownership many times, and records reflect that John M. Price (founder of Pismo Beach) purchased the land for 477 head of cattle from Jose Ortega in 1850.
(Original Drawing of "El Pizmo Rancho")

1.8 Profile of Grover Beach
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 20 Founding and Naming the Town
In 1877, 35-year-old D.W Grover purchased a parcel of the original land grant with over $22,000 worth of gold, worth roughly $580,000 today. In August of 1887, Grover filed his plan for the self-named city at the San Luis Obispo Courthouse. The Town of Grover was established the same day. The name of the town officially became the ‘City of Grover City’ in 1959, when the city was incorporated. A public vote in 1992 changed the name to its current ‘The City of Grover Beach’ to emphasize its seaside location.

Commercial Development
D.W Grover hoped to create a booming city of vacationers and tourism. In the 1890s, Grover petitioned Southern Pacific to build a train station in his city to attract investors, but Oceano was chosen as the site for the desired railway. Grover and his partner George Gates promoted Grover City as the ‘grandest summer and winter seaside resort on the Pacific Coast.’ While the city did not become a bustling vacation destination during its founder’s ownership, the community flourished in 1934 under Horace V. Bagwell. Bagwell purchased 1,100 acres of land and advertised the city as ‘the home of the average man.’ Bagwell made the city affordable to the working class, and development began to speed up. In the 1940’s the first store opened, followed by the post office. By 1949, the Fairgrove Fire District and the Grover City Water district were established, paving the way for the 1950’s building boom.

Officially Incorporating the City
An incorporation election on December 21, 1959, showed overwhelming support for the incorporation of the town. Mayor Fay Keen was the first mayor of the new city, and the City Council met for the first time just 7 days after the incorporation election. As the city boundaries were laid out, more opportunities for development arose. The new city rapidly filled with restaurants, stores, and homes, becoming the beloved city it is today.

Government
Grover Beach has a Council-Manager form of government with four Council Members serving by district for four-year terms and a directly elected Mayor serving two-year terms. The Mayor and City Council serve as the legislative and policy making body of the City. The City Manager, appointed by the Council, serves as chief executive officer and is responsible for the day-to-day administration of City affairs.

The City Council also appoints a City Attorney. There are three active Advisory Boards and Commissions that are appointed by the City Council: Planning Commission; Parks, Recreation, and Beautification Commission; and Citizen Oversight Committee for City Revenue Measures.

Services
The City provides a full range of municipal services. These include police protection, planning, building, water, sewer, street maintenance, and general administrative services. Wastewater treatment is provided to residents by the South San Luis Obispo County Sanitation District, a special district which also includes Arroyo Grande and the Oceano Community Services District. Fire protection services are provided by the Fire Cities Fire Authority, a joint powers authority comprised of Grover Beach and Arroyo Grande. In addition, the City maintains five parks and two community recreation centers.

Local Economy
Grover Beach is located on the Central Coast midway between the Bay Area and Southern California and has direct access to a major north-south highway, rail lines with freight trains and inter-city Amtrak service, and public transit routes, and is near the San Luis Obispo County Regional Airport. Grover Beach has the only train station in the South County area with daily Amtrak Pacific Surfliner train service north to San Luis Obispo and south to Santa Barbara, Los Angeles, and San Diego along with connecting bus service.

1.8 Profile of Grover Beach

Page 21 ends

The community is comprised of residential housing stock of all types and at a range of costs, commercial retail businesses along West Grand Avenue serving both residents and tourists, and ninety acres of industrial areas currently comprised of light manufacturing and service businesses. The City is working with private developers to construct three hotels including the beachfront Grover Beach Lodge and partnering with a local Internet provider on citywide municipal fiber broadband service. In addition, the City has adopted ordinances allowing commercial cannabis businesses and has entitled approximately thirty retail, manufacturing, testing laboratory, and distribution businesses to date with 7 businesses currently operating. Cannabis businesses have added numerous jobs and generate approximately $1 million in annual cannabis tax revenue for the City.

1.8 Profile of Grover Beach
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 22 Demographics
Population

TOTAL POPULATION
12,534 -1.75%
vs. 2022

GROWTH RANK
464 out of 503 Municipalities in California
* Data Source: Client entered data for year 2023

DAYTIME POPULATION
11,050
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs.
* Data Source: American Community Survey 5-year estimates 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
11 500
12 000
12 500
13 000
13 500
14 000
14 500

1.9 Demographics

Page 23 ends

POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates 565
784 746
606 686
2K
2K
1K
721
878
1K
484
323
<5
5-9
10-14
15-19
20-24
25-34
35-44
45-54
55-59
60-64
65-74
75-84
>85
0 500
1K
2K
2K
3K

1.9 Demographics
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 24 Household

TOTAL HOUSEHOLDS
4,973
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base.
-14%
lower than state average
-20%
lower than state average
10%
higher than state average
3%
higher than state average
* Data Source: American Community Survey 5-year estimates Family Households
41%
Married Couples
39%
Singles
26%
Senior Living Alone
13%

1.9 Demographics

Page 25 ends

Economic
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.

HOUSEHOLD INCOME
Above $200,000
10% -48.05%
lower than state average
Median income
$82,534 -14.33%
lower than state average
Below $25,000
14% 7.42%
higher than state average
* Data Source: American Community Survey 5-year estimates Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000

1.9 Demographics
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 26 Housing
2023 MEDIAN HOME VALUE
$691,900
* Data Source: 2023 US Census Bureau, American Community Survey. Home value data includes all types of owner-occupied housing.

HOME VALUE DISTRIBUTION
* Data Source: 2023 US Census Bureau, American Community Survey. Home value data includes all types of owner-occupied housing.

HOME OWNERS VS

RENTERS
Grover
Beach
State Avg.
45%
Rent
55%
Own
44%
Rent
56%
Own
* Data Source: 2023 US Census
Bureau, American Community
Survey. Home value data includes
all types of owner-occupied
housing.
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
300K
400K
500K
600K
700K
800K
209
873
1K
263
38 0
34 0
20 83
70 > $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
0 200 400 600 800 1K 1K

1.9 Demographics

Page 27 ends

Financial Trends

2.0 Financial Trends
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 28 Sales Tax
Sales tax is now the General Fund’s largest revenue source at 34% of General Fund revenue. Sales tax revenue has grown significantly since the passing of Measure F-20, the 1% transaction and use tax, approved by voters in November 2020. Measure F-20 1% transaction and use tax was $2.45M in FY 2023-24.

Fiscal
Year
Amount %
Change
2015 $1,513,647 8.20%
2016 $1,630,889 7.70%
2017 $1,962,043 20.30%
2018 $2,136,375 8.90%
2019 $2,116,064 -1.00%
2020 $2,565,665 21.20%
2021 $2,819,912 9.90%
2022 $3,846,967 36.40%
2023 $5,649,554 46.90%
2024 $5,733,274 6.00%
2025
Est. $5,812,000 1.00%
Average Annual % Change
Last 2 Years 3.50%
Last 5 Years 20.04%
Last 10 Years 15.73%
Year
Dolllars ($)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025 Est.
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000

2.1 Revenue Trends

Page 29 ends

Property Tax Assessed Valuation
Property tax has historically been one of the General Fund’s most stable revenue sources and comprises over 32% of General Fund revenues. Property tax revenue is driven by changes in assessed value as determined by the San Luis Obispo County Assessor’s Office.

As shown in the chart and table, assessed valuation has increased with an average annual increase of 4.97% over the past five years.

The FY 2024-25 budget assumes that the City’s property tax revenues will increase by 5%.

Fiscal
Year Amount
%
Change
2016 1,428,953,619 4.54%
2017 1,507,554,753 5.69%
2018 1,589,746,399 5.07%
2019 1,691,583,881 6.37%
2020 1,774,051,571 4.95%
2021 1,855,486,235 4.67%
2022 1,934,674,078 3.20%
2023 2,060,810,502 6.46%
2024 2,173,954,240 5.54%
2025
Est 2,173,954,240 5.00%
Average Annual % Change
Last 2 Years 5.27%
Last 5 Years 4.97%
Last 10 Years 5.15%
Year
Dolllars ($)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025 Est.
1,400,000,000
1,600,000,000
1,800,000,000
2,000,000,000
2,200,000,000
2,400,000,000
1,200,000,000

2.1 Revenue Trends
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 30 Cannabis Tax
Cannabis tax is the City’s third-largest tax revenue generator in the General Fund at 5% in FY 2024-25. Cannabis revenue increased significantly from FY 2017-18 through FY 2020-21, increasing from $16,000 in the first year of collection to $2.4 million in FY 2020-21. FY 2021-22 showed a downturn in revenue as cannabis businesses begin operating in nearby cities and the industry in general continues to face significant pressures. The FY 2024-25 revenue amount represents a less than 1% increase from the prior year.

Fiscal
Year
Amount %
Change
2018 $16,359
2019 $953,342 5727.60%
2020 $1,936,729 103.20%
2021 $2,424,900 25.20%
2022 $1,515,600 -37.50%
2023 $1,198,037 -21.00%
2024 $1,066,489 -20.80%
2025
Est
$1,070,000 0.33%
Average Annual % Change
Last 2 Years -10.24%
Last 5 Years -10.75%
Year
Dolllars ($)
2018
2019
2020
2021
2022
2023
2024
2025 Est.
0 500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000

2.1 Revenue Trends

Page 31 ends

Franchise Fees
This revenue source consists of franchises paid to the City from utilities and private companies such as Comcast, AT&T, etc. Franchise fees are stable and have averaged an 7.94% annual increase over the past five years. The higher increase is likely owing to higher costs for service. However, the installation of new trans-oceanic fiber optic cables is anticipated to add up to $200,000 in FY 2025-26.

Fiscal
Year
Amount %
Change
2016 $523,300 2.70%
2017 $542,900 3.75%
2018 $529,200 -2.52%
2019 $555,460 4.96%
2020 $585,000 5.32%
2021 $600,200 2.60%
2022 $619,400 3.20%
2023 $713,394 15.18%
2024 $718,907 0.77%
2025
Est
$848,000 17.96%
Average Annual % Change
Last 2 Years 9.36%
Last 5 Years 7.94%
Last 10 Years 5.39%
Year
Dolllars ($)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025 Est.
500,000
550,000
600,000
650,000
700,000
750,000
800,000
850,000
900,000

2.1 Revenue Trends
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 32 Transient Occupancy Tax (TOT)
Transient Occupancy Taxes have increased at an average annual pace of 20% since 2020. The dramatic growth is owing to the City’s expanded efforts to collect revenues from short-term rentals. Given ongoing developments, it is anticipated that TOT will grow by 5% for FY 2024-25. Staff anticipate collecting over $1.3 million in TOT revenues for FY 2025-26 with the opening of a new hotel project.

Fiscal
Year
Amount %
Change
2016 $363,400 15.60%
2017 $368,700 1.46%
2018 $371,200 0.68%
2019 $433,249 16.72%
2020 $433,500 0.06%
2021 $580,400 33.89%
2022 $952,200 64.06%
2023 $924,162 -2.94%
2024 $953,685 3.19%
2025
Est
$1,001,000 4.96%
Average Annual % Change
Last 2 Years 4.08%
Last 5 Years 20.63%
Last 10 Years 13.77%
Year
Dolllars ($)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025 Est.
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000

2.1 Revenue Trends

Page 33 ends

General Fund Operating Costs: Last Ten Years
The average annual increase in operating costs has been 9% over the last five years due to increased revenue capacity for City projects and services. The FY 2025-26 budget includes a General Fund contribution of $100,000 to fund capital projects and an additional $433,000 for the Equipment Replacement Fund.

Fiscal
Year
Amount %
Change
2016 8,270,000 7.82%
2017 9,129,900 10.40%
2018 10,368,565 13.57%
2019 10,977,200 5.87%
2020 12,131,200 10.51%
2021 13,507,556 11.35%
2022 14,962,253 10.77%
2023 15,535,258 3.83%
2024* 23,749,284 52.87%
2025
Est.
18,077,041 -23.88%
Average Annual % Change
Last 2 Years 14.49%
Last 5 Years 10.99%
Last 10 Years 10.31%
*Includes PLHA pass-through loan
of $5 Million.

Year
Dollars ($)
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
0 2,500,000
5,000,000
7,500,000
10,000,000
12,500,000
15,000,000
17,500,000
20,000,000
22,500,000
25,000,000
27,500,000

2.2 Expense Trends
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 34 General Fund Reserves
The graph depicts the ending reserves for the General Fund over the past four years and the estimate for the current year along with the goal amount based on the Council’s 25% reserve policy goal. Ending reserves have remained higher than the policy level in recent years given prudent fiscal management. This scope of reserves adheres to the Council’s policy goal to ensure adequate reserves for emergencies, unforeseen circumstances, or one-time needs.

Fiscal Year
Doallars ($)
Actual Reserves Policy Goal (25%)
2019 2020 2021 2022 2023 2024 2025 Est.
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000

2.2 Expense Trends

Page 35 ends

CalPers (Pension) Costs
The City's pension costs continue to increase annually despite a one-time paydown of safety-related pension costs in 2021.

Fiscal Year
Dollars ($)
$1,029,928
$1,200,261
$1,420,978
$2,107,216
$2,170,473
$1,823,122
$1,980,562
$2,068,628
$2,167,829
$2,257,601
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 0 250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
1,750,000
2,000,000
2,250,000
2,500,000

2.2 Expense Trends
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 36 Budget Overview

3.0 Budget Overview

Page 37 ends

Overview FY 2025-26 & FY 2026-27
The City’s budget is a spending plan that is the legal authority to commit financial resources to provide services within Grover Beach. The FY 2025-26 total expenditure budget is $37.57M and includes $21.37M in the General Fund, $6.01M in Enterprise Funds, and $5.17M in Special Revenue Funds. The budget includes $8.03M in the Capital Improvement Program (CIP) consisting of funding of $100,000 from the General Fund, $405K from Enterprise Funds, $3.45M from Special Revenue and Fiduciary Funds. The City’s General Fund budget is approximately 58% of the total budget in FY 2025-26 and provides most of the services commonly associated with city government, such as Public Safety, Recreation, Planning, and Public Works. The FY 2026-27 total budget is $30.17M and includes $19.34M in the General Fund, $5.77M in Enterprise Funds, and $4.36M in Special Revenue Funds. The budget includes $3.86M in the Capital Improvement Program (CIP) consisting of funding of $230,000 from the General Fund, $45,000 from Enterprise Funds, and $3.53M from Special Revenue Funds. The City’s General Fund budget is approximately 65% of the total city budget in FY 2026-27. FY 2025-26 revenues assume debt proceeds in the amount of $10M for Measure K-14 Street Repair Bonds.

FY 2025-26 Citywide Expenditures $37,565,031
General Fund (Budgeted) $21,367,105
Enterprise Funds (Budgeted) $6,006,120
Special Revenue Funds (Budgeted) $5,171,564
Capital Project Funds (Budgeted) $4,179,924
Fiduciary Funds (Budgeted) $453,114

3.1 Budget Summary
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 38 FY 2025-26 Citywide Revenue $44,396,646*
*Includes $10 million in K-14 bonds.

FY 2026-27 Citywide Expenditures $30,171,464
General Fund (Budgeted) $21,961,114.00
Special Revenue Funds (Budgeted) $11,925,023.64
Enterprise Funds (Budgeted) $5,873,470.52
Capital Project Funds (Budgeted) $4,183,924.00
Fiduciary Funds (Budgeted) $453,114.00

3.1 Budget Summary

Page 39 ends

FY 2026-27 Citywide Revenue $28,644,105
General Fund (Budgeted) $19,340,275
Enterprise Funds (Budgeted) $5,769,341
Special Revenue Funds (Budgeted) $4,360,375
Capital Project Funds (Budgeted) $280,000
Fiduciary Funds (Budgeted) $0

3.1 Budget Summary
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 40 General Fund (Budgeted) $19,833,404.56
Enterprise Funds (Budgeted) $5,953,610.75
Special Revenue Funds (Budgeted) $2,408,089.45
Capital Project Funds (Budgeted) $449,000.00
Fiduciary Funds (Budgeted) $0.00

3.1 Budget Summary

Page 41 ends

City Expenditure Budget by Fund
Fund # Fund Name 2025-26 2026-27
101 General Fund $21,367,105 $19,340,275
105 Equipment Replacement Fund $387,203 $421,473
Total General Fund $21,754,308 $19,761,748
201 Street Construction Designated Fund (K-14) $3,631,328 $3,773,465 205 Gas Tax Fund $446,490 $355,538
210 Road Maintenance and Rehabilitation Account $299,000 0 215 Local Transportation Fund (LTF) $187,035 $84,872
230 Public Safety Grant Fund $146,500 $146,500
240 Parks Construction Fund $282,541 0
256 Parks Facilities Development Impact Fee Fund $78,541 0 257 Recreation Facilities Development Impact Fee Fund $100,129 0 Total Special Revenue Fund $5,171,564 $4,360,375
305 Capital Projects $4,179,924 $280,000
402 Trust and Agency Fund $453,114 0
601 Water Fund $4,630,956 $4,210,221
602 Water Conservation Fund $6,171 $6,208
603 Wastewater Fund $1,368,993 $1,552,912
Total Enterprise Funds $6,006,120 $5,769,341
Grand Total $37,565,031 $30,171,464

3.1 Budget Summary
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 42 Citywide Source of Funding
Category 2025-26
% of
Budget 2026-27
% of
Budget
Property Tax $6,459,000 14.55% $6,781,000 23.33%
Sales Tax $5,863,000 13.20% $6,100,152 21.39%
Cannabis Tax $1,070,000 2.41% $1,081,000 3.79%
Transient Occupancy Tax $1,331,000 3.00% $1,371,000 4.81% Charges for Services $7,650,397 17.25% $7,781,525 27.29% Franchise Fees $965,000 2.17% $1,023,000 3.59%
Transfers In $5,461,074 12.30% $1,665,947 5.84%
Use of Money and Property $657,300 1.48% $644,380 2.26% Licenses & Permits $546,000 1.23% $557,000 1.95%
Utility Users Tax $207,000 0.47% $211,000 0.74%
Other Agencies (Intergovernmental) $4,151,722 9.35% $1,390,100 4.87% Fines and Penalties $35,153 0.08% $38,000 0.13%
Debt Proceeds $10,000,000 22.52% 0 0%
Grand Total $44,396,646 100.00% $28,644,105 100.00%

3.1 Budget Summary

Page 43 ends

FY 2025-26 General Fund Revenue by Source
Taxes (Budgeted) $15,895,000 (74.18%)
Revenue from Other Agencies (Budgeted) $2,952,603 (13.78%) Charges for Services (Budgeted) $810,208 (3.78%)
Transfers In (Budgeted) $683,150 (3.19%)
License and Permits (Budgeted) $546,000 (2.55%)
Use of Money and Property (Budgeted) $506,000 (2.36%)
Fines and Penalties (Budgeted) $35,153 (0.16%)

3.1 Budget Summary
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 44 FY 2026-27 General Fund Revenue by Source
Taxes (Budgeted) $16,567,152 (85.45%)
Charges for Services (Budgeted) $837,511 (4.32%)
Transfers In (Budgeted) $703,645 (3.63%)
License and Permits (Budgeted) $557,000 (2.87%)
Use of Money and Property (Budgeted) $517,000 (2.67%)
Revenue from Other Agencies (Budgeted) $167,195 (0.86%) Fines and Penalties (Budgeted) $38,000 (0.20%)

3.1 Budget Summary

Page 45 ends

Citywide Full-Time Equivalent Personnel
Department 2024-25 2025-26 2026-27
City Council 5.00 5.00 5.00
City Manager's Office 8.00 8.00 8.00
Administrative
Services

9.00 9.00 9.00
Community
Development

5.25 5.25 5.25
Public Works 14.75 14.75 14.75
Police 31.00 31.00 31.00
Total 73.00 73.00 73.00
Historical Expenditures by Department Dollars
Non-Departemental Police Department City Manager's Office Administrative Services Community Development CIP
Public Works
FY2021 FY2022 FY2023 FY2024
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000

3.1 Budget Summary
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 46 FY 2025-26 Expenditures by Department
FY 2026-27 Expenditures by Department Dollars
10,565,438
7,636,530
1,910,518
1,515,658
6,598,575
1,322,890
8,024,924 Non-Departmental
Police Department
City Manager's Office
Administrative Services
Public Works
Community Development
CIP
Dollar
6,916,606
8,038,033
1,942,425
1,647,070
6,344,861
1,532,469
3,850,000
Non-Departmental
Police Department
City Manager's Office
Administrative Services
Public Works
Community Development
CIP

3.1 Budget Summary

Page 47 ends

Capital Improvement Budget by Fund
Historical Expenditures by Fund
Street Construction Designated Fund (K-14) Capital Projects Water Fund Wastewater Fund Gas Tax Fund Water Conservation Fund
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
Street Construction
Designated Fund (K-14) $3,681,880 $2,213,929 $2,760,000 $3,370,000 $3,530,000 Gas Tax Fund - - - $75,000 -
Capital Projects $915,162 $1,233,037 $1,974,000 $4,179,924 $280,000 Water Fund $5,665,183 $874,390 $1,060,000 $400,000 $40,000 Water Conservation Fund $11,280 $4,401 $5,000 $5,000 $5,000 Wastewater Fund $136,650 - $240,000 - -
Total Expenditures $10,410,156 $4,325,756 $6,039,000 $8,029,924 $3,855,000 $4M
$9M
$10M
$4M
$6M
$8M
$4M
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $5M
$10M
$15M
Expenditures by Fund

3.2 Capital
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 48 Transfers In
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
General Fund $546,000.00 $599,750.00 $605,000.00 $683,150.00 $703,645.00 Equipment
Replacement Fund $153,060.97 $136,667.00 $420,305.00 $533,000.00 $445,901.57 Street Construction
Designated Fund (K14)$96,866.20 $38,000.00 $40,000.00 $40,000.00 $42,400.00 Capital Projects $915,162.47 $1,133,736.57 $1,974,000.00 $4,179,924.00 $449,000.00 Water Fund $38,425.77 $25,000.00 $25,000.00 $25,000.00 $25,000.00 Water Conservation
Fund $62.00 - - - -
Wastewater Fund $104,923.00 $6,106.25 - - -
Total Revenues $1,854,500.41 $1,939,259.82 $3,064,305.00 $5,461,074.00 $1,665,946.57 Revenues by Fund

3.3 Transfers In

Page 49 ends

Transfers Out
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
General Fund $540,027 $628,987 $850,000 $3,214,599 $584,000 Gas Tax Fund $85,621 $3,000 $153,000 $75,000 $50,000
Road Maintenance and
Rehabilitation Account $299,000 $299,000 $299,000 $299,000 - Local Transportation Fund
(LTF) - - $1,900,000 $100,000 -
Parks Construction Fund - - - $282,541 -
Fire Development Impact
Fee Fund - $8,000 - - -
Wastewater Development
Impact Fee Fund $85,000 $5,596 $85,000 - -
Parks Facilities
Development Impact Fee
Fund
$121,898 $231,170 - $78,541 -
Recreation Facilities
Development Impact Fee
Fund
$51,000 - - $100,129 -
Water Development Impact
Fee Fund $32,253 $25,000 $25,000 - -
State Mandated ADA Fund $6,000 $6,000 $6,000 - -
Trust and Agency Fund - - - $453,114 -
Water Fund $456,531 $492,499 $483,153 $485,000 $490,000 Wastewater Fund $177,170 $240,008 $273,152 - $263,041
Total Expenditures $1,854,500 $1,939,260 $4,074,305 $5,087,924 $1,387,041 Expenditures by Fund

3.4 Transfers Out
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 50 Department Budgets

4.0 Department Budgets

Page 51 ends

Administrative Services
Mission Statement
Provide clear, accurate and timely financial information to City officials and financial management services which enhance the financial health of the City and improve the economic well-being of the community now and in the future.

Services and Structure
Operationally, the Administrative Services Department provides the following services:

Accounting and Financial Reporting
Performing the accounting for all the City's financial transactions and coordinating the assisting in the preparation of the annual Audit and Comprehensive Annual Financial Report. The department also prepares State of California and County of San Luis Obispo required annual reports.

Budget
Coordinating the annual operating and capital budget process, including the development of the fee schedule, assisting departments with reports and analysis to ensure expenditures are maintained within budgeted appropriations.

Treasury and Revenue Management
Managing the City's cash and investment to ensure requirements are met and return on invested funds is aligned with the City's investment policy. Administering the Business Tax Certificate and Cannabis Tax programs and monitoring and enforcing the collections of other revenue sources.

Accounts Payable
Administering the Accounts Payable process and ensuring vendors are paid timely and accurately. Filing all required regulatory and taxrelated documentation in a timely manner.

Payroll
Process bi-weekly payroll for all the City's employees, report and pay tax obligations, and complete all regulatory reporting requirements.

Information Technology
Work collaboratively with all City departments to deliver the highest quality IT services, infrastructure, and technology consulting possible.

Manage the operation, maintenance and support of City technology infrastructure and technology assets.

Utility Billing
Provides customer account services to over 4,800 accounts for water, wastewater and stormwater services provided by the City. Utility bills are mailed every two months to all customers of the city, with one half of the city billed each month.

Debt Service
Manage the City's debt portfolio to ensure adequate funds are available to make principal, interest, and other debt-related payments in a timely manner, as well as ensuring all continuing disclosure requirements.

Risk Management
Identify, evaluate, control, and reduce risks inherent to City operations and services.

4.1 Administrative Services
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 52 FY 2024–25 Highlights
Prepared FY 2023-24 Annual Comprehensive Financial Report with no findings and an unqualified opinion from the independent auditors.

Worked with investment advisors to continue to diversify the City’s investment portfolio and ensure invested funds are aligned with City’s investment policy.

Prepared updated five-year General Fund Financial Forecast.

Hired the following positions to fill vacancies:

Finance Manager
Account Technician III
Administrative Assistant
IT Assistant
Completed implementation of Enterprise Resource Planning (ERP) system for management of City financial and utility information Oversaw financial actions related to the City's withdrawal from Central Coast Blue Recycled Water Project Oversaw competitive selection of cannabis tax auditor
Updated Master Fee Schedule for FY 2025-26
Lead department for preparation of the FY 2025-26 & 2026-27 Budget FY 2025-27 Key Department Initiatives
Develop a new Cost Allocation Plan which will update existing methods for determining rates to charge for services provided by the General Fund to non-general fund programs.

Undertake Water Rate Study working with City Manager and Public Works given expiration of existing rate structure Implement a cyber security program to train staff on emerging threats, best practices, and communication around cyber security.

Revise customer service standards and expectations to ensure productive interactions with staff.

Attend conferences and training for public sector financial management, such as Government Finance Offers Association and California Society of Municipal Finance Officers, to learn new technical approaches and market developments to inform City strategic financial direction.

Continue to build strong relationships with related staff in neighboring cities and understand economic conditions affecting region for more effective budgeting and forecasting.

4.1 Administrative Services

Page 53 ends

Performance Measures
Performance Measure 1: Number of calendar days following year-end until the Annual Comprehensive Financial Report (ACFR) is issued
The goal is to meet or exceed the Government Financial Officers Association (GFOA) recommended standard of submitting the ACFR by December 31, or 184 after the fiscal year-end to enable and enhance transparency, accountability and integrity.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 170 170 170 170 170
Actual 169 170 172
Notes: No additional notes.

Performance Measure 2: City cybersecurity rating
National Cyber Security Review Score: Continuously increase the city's cybersecurity rating by following industry standard scale maturity between 1-7 with a recommended level of 5.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 2.25 2.75 3.0 3.5
Actual 1.71 2.69 2.79
Notes: The department began tracking this measure in FY 2022-23.

4.1 Administrative Services
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 54 FY26 Expenditures by Fund
General Fund $659,026 43.47%
Water Fund $414,105 27.31%
Wastewater Fund $413,389 27.27%
Equipment Replacement Fund $25,000 1.65%
Local Transportation Fund (LTF) $4,635 0.31%
FY27 Expenditures by Fund
General Fund $693,863 42.13%
Water Fund $469,833 28.53%
Wastewater Fund $458,374 27.83%
Equipment Replacement Fund $25,000 1.52%
FY26 Expenditures by Division
Utility Billing $827,494 54.58%
Information Technology $368,942 24.33%
General Accounting $319,719 21.09%
FY27 Expenditures by Division
Utility Billing $928,207 56.36%
Information Technology $381,207 23.14%
General Accounting $337,655 20.50%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
General Accounting $340,990 $328,668 $321,959 $319,719 $337,655 Utility Billing $813,963 $964,722 $868,323 $827,494 $928,207 Information Technology $226,277 $326,927 $343,121 $368,942 $381,207 Total Expenditures $1,381,230 $1,620,317 $1,533,403 $1,516,155 $1,647,070

1.52M 1.65M

1.52M 1.65M
Expenditures by Division

4.1 Administrative Services

Page 55 ends

Expenditures by Category
Historical Expenditures by Category
Salaries and Benefits Supplies and Services Other
Minor Capital Interdepartmental Charge
FY26 Expenditures by Category
Salaries and Benefits $1,064,066 70.18%
Supplies and Services $452,090 29.82%
FY27 Expenditures by Category
Salaries and Benefits $1,175,355 71.36%
Supplies and Services $471,715 28.64%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Salaries and Benefits $1,002,998 $1,102,993 $1,105,753 $1,105,753 $1,064,066 $1,175,355 Supplies and Services $333,407 $489,838 $427,650 $427,650 $452,090 $471,715 Minor Capital $12,922 - - - - -
Interdepartmental Charge $2,728 $1,998 - - - -
Other $29,175 $25,488 - - - -
Total Expenditures $1,381,230 $1,620,317 $1,533,403 $1,533,403 $1,516,155 $1,647,070 $1M $1M
$1M
$2M $2M $2M
$2M
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
$2,000K

1.52M 1.65M
Expenditures by Category

4.1 Administrative Services
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 56 Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Administrative Services Director 1 1
Finance Manager 1 1
Accounting Specialist 1 1
Accounting Technician II 2 2
Accounting Technician III 1 1
Administrative Assistant I 1 1
IT Specialist 1 1
Assistant IT Specialist 1 1
Total Positions 9 9

4.1 Administrative Services

Page 57 ends

City Manager's Office
Mission Statement
The City Manager's Office provides leadership, support, and coordination for City departments; provides policy recommendations to the City Council and implements Council policies and priorities; represents City interests in local and regional issues; and oversees key program areas of citywide nature.

Services and Structure
The City Manager's Office consists of the following programs:

City Management
Provide citywide leadership and coordination to the City organization; provide policy development support for the City Council; implement economic development initiatives; and represent the City's interests in local and regional issues.

City Clerk
Ensure transparency of city government to the public in an ethical, professional, and impartial manner regarding legislative and advisory body proceedings; maintain a complete and accurate record of City Council proceedings; preserve official legislative records; manage municipal elections; serve as compliance officer for state and local statutes; and process general liability claims.

Community Services
Provide recreational and special event activities for the public, utilizing community centers and parks; facilitate park and community center rentals efficiently and with exemplary customer service; coordinate the Parks, Recreation and Beautification Commission; provide recommendations for park and community center improvements.

Human Resources
Develop, implement, and support programs and processes that add value to the City and its employees; ensure organizational compliance with employment laws and regulations; coordinate employee training and development; and develop policies and procedures to ensure a safe and welcome workplace.

FY 2024-25 Highlights
Oversaw citywide implementation of FY 2023-25 Council Goals and facilitated the Council's development of governing norms, broad multi-year goals and City Council biennial priorities for FY 2025-27 Continued to provide citywide leadership and project management for implementation of a new Enterprise Resource Planning system
Led analysis of the City's fleet management, established a Equipment Replacement Fund and funding policy and contracted for Enterprise Fleet Management services to better streamline the City's vehicle acquisition, maintenance and replacement practices Coordinated tourism marketing for the City’s Visit Grover Beach platforms to support economic vitality in the City Coordinated citywide response to homelessness issues such as development of homeless housing facilities, implementation of the camping ordinance and working with the County and community organizations on homeless services Coordinated citywide communication and engagement efforts with assistance of outside communications firm and delivered multiple community engagement events and informational forums
Conducted a community survey to allow for public input for City Council Goals Conducted the annual employee satisfaction survey to assess organizational management, community, training and development, and other key aspects of organizational culture
Provided citywide leadership in enhancing organizational performance through implementation of the recommendations from the organizational assessment by improving systems, processes, structures, and tools

4.2 City Manager's Office
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 58 Promoted employee training and development and implemented citywide training plans Executed a contract with the County of San Luis Obispo to allow Five Cities Fire Authority to provide fire and emergency medical services to the Oceano service area
Completed the recodification process for the Grover Beach Municipal Code Completed updates to the City’s website to improve site design and organization Recruited for 18 positions in City departments
Implemented a Workplace Violence Prevention Plan, in accordance with State law Strengthened existing relationships, partnerships, and volunteers to continue to provide high-quality programs and events to the community.

Promoted benefits of recreation programs, facilities and special events for the community, including introduction of new wellness events, focusing on physical and mental well-being
Increased sponsorship opportunities and commitments for City events Implemented high-quality community special events including the summer concert series, holiday events, and inaugural Tour of Grover Beach Bike Parade
FY 2025-27 Key Department Initiatives
Continue to coordinate tourism marketing for the City’s Visit Grover Beach platforms to support economic development in the city Continue to coordinate the citywide response to homelessness issues Continue to coordinate citywide communication and engagement efforts and implement the work programs for Council Goals for FY 2025-27
Conduct the 2025 biennial community survey to gauge resident perceptions on quality of life, City services, communications, and key policy issues facing the City
Conduct an annual employee satisfaction survey
Coordinate November 2026 municipal election
Implement a Public Records Act response system
Promote employee training and development
Build a robust volunteer recruitment, training and recognition program for Community Services Adapt the City's community events to accommodate the Ramona Garden Park Rehabilitation construction project in FY 2025-26 Promote and deliver community events to celebrate the completion of the West Grand Avenue streetscape project and the Ramona Garden Park Rehabilitation project Update the City’s Parks Master Plan to address needs.

Continue to develop and expand high-quality and affordable recreation programming and community events for the community.

4.2 City Manager's Office

Page 59 ends

Performance Measures
Performance Measure 1: Increase in followers to "Visit Grover Beach" social media platforms.

The percentage of increase in followers on the "Visit Grover Beach" social media platforms over the prior calendar year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 50% 50% 35% 38%
Actual 161% 9987% 24%
Notes: The department tracking this measure in FY 2022-23. The large growth percentage in FY 2023-24 is due to increased efforts and hiring of a marketing firm to manage Visit Grover Beach platforms. Data for FY 2024-25 is as of April 1, 2025.

Performance Measure 2: Employees who feel they are able to raise issues with management.

Percentage of employees who respond in the annual employee survey that they agree or strongly agree that they are able to raise concerns about work-related issues without fear of retaliation.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 95% 90% 90% 90%
Actual 92% 80% 90%
Notes: The department began tracking this measure in FY 2022-23. The goal was adjusted in line with actuals in FY 2023-24.

Performance Measure 3: Employee retention rate
Percentage of employee retention per fiscal year. Turnover includes retirements, however, seasonal and volunteer staff are excluded.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 95% 90% 90% 90%
Actual 92% 80% 82.5%
Notes: The department began tracking this measure in FY 2022-23.

Performance Measure 4: Timely City Council meeting minutes Percentage of City Council Meeting Minutes prepared within 45 business days of the meeting in the prior calendar year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 100% 100% 100% 100%
Actual 87% 100% 100%
Notes: The department began tracking this measure in FY 2022-23.

4.2 City Manager's Office
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 60 Performance Measure 5: Increase in parks facility rentals Increase in total facility rental agreements signed each fiscal year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 327 356 390 405
Actual 298 339 324
Notes: The department began tracking this measure in FY 2022-23. The data reported for FY 2024-25 is as of May 1, 2025.

Performance Measure 6: Increase in the number of participants in Community Services classes Increase in the total number of registrations for classes each fiscal year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 885 1290 1609 1657
Actual 843 1229 1322
Notes: The department began tracking this measure in FY 2022-23. Data for FY 2024-25 is as of May 1, 2025.

FY26 Expenditures by Division
General Management $658,230 34.45%
Community Services $553,289 28.96%
Legislative $382,244 20.01%
Human Resources $316,756 16.58%
FY27 Expenditures by Division
General Management $672,947 34.64%
Community Services $534,198 27.50%
Legislative $412,916 21.26%
Human Resources $322,365 16.60%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
Legislative $396,236 $391,012 $347,664 $382,244 $412,916 General Management $558,853 $618,725 $621,977 $658,230 $672,947 Human Resources $210,640 $263,445 $240,047 $316,756 $322,365 Community Services $550,570 $572,955 $621,831 $553,289 $534,198 Total Expenditures $1,716,298 $1,846,137 $1,831,519 $1,910,518 $1,942,426

1.91M 1.94M
Expenditures by Division

4.2 City Manager's Office

Page 61 ends

Expenditures by Category
Historical Expenditures by Category
Salaries and Benefits Supplies and Services Interdepartmental Charge Debt Service
FY26 Expenditures by Category
Salaries and Benefits $1,365,428 71.47%
Supplies and Services $545,091 28.53%
FY27 Expenditures by Category
Salaries and Benefits $1,363,913 70.22%
Supplies and Services $578,512 29.78%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
Salaries and Benefits $1,075,055 $1,181,281 $1,175,769 $1,365,428 $1,363,913 Supplies and Services $543,657 $600,745 $630,130 $545,091 $578,512 Debt Service $25,620 $25,620 $25,620 - -
Interdepartmental Charge $71,967 $38,491 - - -
Total Expenditures $1,716,298 $1,846,137 $1,831,519 $1,910,518 $1,942,426 $1M
$2M
$2M $2M $2M $2M $2M
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

1.91M 1.94M
Expenditures by Category

4.2 City Manager's Office
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 62 Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Mayor & Council Members 5
5 City Manager 11
Assistant City Manager 11
City Clerk 11
Human Resources Supervisor 11
Deputy City Clerk 11
Community Services Supervisor 11
Recreation Coordinator 11
Community Services Administrative
Assistant
1 1
Total Positions 13 13

4.2 City Manager's Office

Page 63 ends

Community Development Department
Mission Statement
Enhance the quality of life in Grover Beach by providing responsive and efficient development services that promote balanced development, support economic growth, ensure regulatory compliance, and foster a vibrant and thriving community.

Services and Structure
The Community Development Department is responsible for the physical development of the city and administers the city’s land use and building regulations through the implementation of the General Plan, Development Code, and Building Codes. The role of the department is to foster public involvement and creativity to assist the public and decision makers in formulating and implementing policies which balance economic, environmental, and social needs to protect the health, safety, and welfare of all people who live, work, and play in the City of Grover Beach. The department comprises five divisions: Building, Code Compliance, Economic Development, Housing and Grant Administration, and Planning. The department processes development permits, ensures new construction is an asset to its surroundings, and verifies the safety and maintenance of buildings, property, and neighborhoods through compliance, education, and cooperation with other City Departments and public agencies. The Community Development Department staff is committed to providing quality services that are responsive, innovative, and helpful.

Building Division
The Building Division provides construction and inspection services through a contract with a building services consultant. The division reviews project plans, issues permits, and provides inspection services of building and structures in compliance with California’s building, fire, mechanical, electrical, plumbing, energy, and disabled access codes, as well as city ordinances to ensure a safe and livable community. The Building Division responds to citizen concerns regarding illegal construction and substandard conditions (living or dwelling) through enforcement of the established building codes and standards.

Code Compliance
The Code Compliance Division enforces the City's municipal codes related to property maintenance, zoning, and building code violations to promote, preserve, and maintain an attractive community. Duties of the division include addressing quality of life issues and problems involving property maintenance by abating hazardous conditions which threaten the life, health, safety, and welfare of the public; administering a fair and unbiased enforcement program to correct violations of municipal and other codes; issuing administrative citations and pursuing other legal remedies as necessary and authorized by local or state law; and working in partnership with businesses and property owners to obtain voluntary code compliance.

Housing
The Housing Division recognizes its role in promoting a variety of housing types to meet the changing needs, resources, and conditions in the community. This division collaborates with community non-profit organizations which provide specialized programs and projects benefiting its citizens. It manages the federal Community Development Block Grant (CDBG) and HOME Investment Partnership Program which provides first time homebuyer assistance, owner occupied rehabilitation loans and other programs that benefit low-income households. The division also monitors the existing affordable housing inventory to ensure eligibility requirements are met. Management of these grants and implementation of the grant programs is supported through a contract with a consultant.

Planning
The Planning Division is responsible for implementing the General Plan by ensuring that development projects are consistent with the goals, policies, and programs outlined in the General Plan and by ensuring that development projects are consistent with the Grover Beach Development Code and applicable state laws. The Planning Division reviews all development permits, including Use Permits, Subdivision applications, and projects requiring environmental review. The Planning Division provides technical analysis of development permit applications and makes recommendations for consideration by the Planning Commission and City Council regarding all land use issues. The Planning Division also serves the public by responding to public inquiries regarding zoning and development.

4.3 Community Development
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 64 FY 2024-25 Highlights
Configured and launched the new Enterprise Permitting & Licensing (EP&L) software for a one-stop solution for managing all permitting needs
Implemented the Code Compliance module in the Enterprise Resource Planning (ERP) software Presented the 2024 Development Code Amendments to the Planning Commission and City Council Updated the City's Development Impact Fees (DIF) and developed the City's first DIF Deferral Program for qualifying housing projects
Contracted with Linscott, Law, and Greenspan, Engineers (LLG) to prepare the City's Circulation Element Update Partnered with Cal Poly City and Regional Planning Studio to conduct pubic outreach to support the City's Circulation Element Update
Initiated the Countywide Multi-Jurisdictional Local Hazard Mitigation Plan Update along with all participating agencies in coordination with the County of San Luis Obispo
Developed the City's first interactive mapping software to showcase active major projects in the community Completed updates to the Community Development Department's website to improve readability, usability, and increase transparency
Continued support of the City’s economic development policies to assist existing businesses and attract new businesses Continued support of California State Parks with the Grover Beach Lodge project Oversaw construction of major projects 401 West Grand Avenue (Palladium), 402 West Grand Avenue (Encore), 1206 West Grand Avenue (Cleaver and Clark), and 950 El Camino Real (Springhill Suites) Issued permits for other major projects including 197 West Grand Avenue (Trinity), 1598 El Camino Real (Hotel) FY 2025-27 Key Department Initiatives
Complete update to the Circulation Element
Complete update to the Noise Element
Complete update to the City’s Multi-Jurisdictional Hazard Mitigation Plan in coordination with the County of San Luis Obispo Coordinate with Coastal Commission staff to pursue an update to the City’s Local Coastal Plan Develop a framework and implement a Community Development forum to improve engagement and understanding of the department and its initiatives
Initiate and prepare the 7th Cycle Housing Element update Initiate an update to the City's DIFs for Stormwater and Transportation Conduct annual review of the City’s Development Code
Continue to digitize records in support of the Community Development Department's Digital Records Project Continue to make improvements to the department website

4.3 Community Development

Page 65 ends

Performance Measures
Performance Measure 1: Number of entitlements approved
Entitlements (discretionary projects) approved/issued.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 10 10 15
Actual 12 14 25
Notes: Discretionary projects includes Use Permits, Development Permits, Administrative Coastal and Non-Coastal Development Permits, and Ordinance Amendments. Does not include time extensions, temporary use permits, or preapplications.

Performance Measure 2: Number of over the counter permits issued Over the counter permits issued: demo interior walls, demo residential units, demo for unpermitted work, re-roof, electrical, mechanical, plumbing permits.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 132 132 150 200
Actual 120 189 208
Notes: No additional notes.

Performance Measure 3: Number of non-over the counter permits issued Non-OTC permits issued: electrical PV system or car chargers, fire alarm, suppression, grading/stockpile, residential addition, alteration, new SFR, new ADU, residential conversion to ADU, commercial conversion to residential, commercial addition, commercial tenant improvement, sign permits
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 132 200 200
Actual 120 195 202
Notes: Department began tracking this measure in FY 2022-23.

Performance Measure 4: Number of inspections performed
Number of Inspections Performed
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 1000 1087 1087 1100
Actual 988 1030 1287
Notes: Department began tracking this measure in FY 2022-23.

4.3 Community Development
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 66 Performance Measure 5: Average length of plan review
Average number of days for plan check review by Building, Planning, and Public Works FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 21 15 15 15
Actual 10 9 15
Notes: Department began tracking this measure in FY 2022-23.

Performance Measure 6: Number of Code Compliance cases opened Number of new cases.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 175 300 300
Actual 200 343 308
Notes: Department began tracking this measure in FY 2022-23. Case details: Of the 343 cases opened, 66 remain active; 27 cases opened and 'no violation found'; total of 250 cases closed for infractions opened in FY 23-24.

Performance Measure 7: Number of Code Compliance cases closed Number of cases closed. Includes cases that may have been opened in previous fiscal year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 210 250 300
Actual 202 351 313
Notes: Discretionary projects includes Use Permits, Development Permits, Administrative Coastal and Non-Coastal Development Permits, and Ordinance Amendments. Does not include time extensions, temporary use permits, or preapplications.

Performance Measure 8: Inspection request turnaround times Percent of inspection requests completed within 48 hours.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 90% 90%
Actual - 100% 100%
Notes: Department began tracking this measure in FY 2022-23. 100% of inspection requests are scheduled within 48 hours.

May require scheduling to following week.

4.3 Community Development

Page 67 ends

FY26 Expenditures by Division
Planning $736,148 55.65%
Building $460,365 34.80%
Code Compliance $126,377 9.55%
FY27 Expenditures by Division
Planning $985,160 64.29%
Building $411,860 26.88%
Code Compliance $135,449 8.84%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
Planning $686,449 $5,829,192 $801,398 $736,148 $985,160 CDBG $239,646 $592,261 - - -
Building $353,212 $385,632 $355,269 $460,365 $411,860
Code Compliance $119,013 $107,303 $119,017 $126,377 $135,449 Total Expenditures $1,398,320 $6,914,388 $1,275,685 $1,322,890 $1,532,469 Expenditures by Category
Historical Expenditures by Category
Supplies and Services Salaries and Benefits Interdepartmental Charge

1.32M 1.53M
Expenditures by Division
$1M $1M $1M
$7M
$1M $1M $2M
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M

4.3 Community Development
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 68 FY26 Expenditures by Category
Salaries and Benefits $880,841 66.58%
Supplies and Services $442,049 33.42%
FY27 Expenditures by Category
Salaries and Benefits $940,440 61.37%
Supplies and Services $592,030 38.63%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Salaries and Benefits $856,866 $718,951 $810,885 $810,885 $880,841 $940,440 Supplies and Services $513,412 $6,165,745 $464,800 $464,800 $442,049 $592,030 Interdepartmental Charge $28,043 $29,692 - - - -
Total Expenditures $1,398,320 $6,914,388 $1,275,685 $1,275,685 $1,322,890 $1,532,469 Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Community Development Director 1 1
Senior Planner 1 1
Associate Planner 1 1
Assistant Planner 1 1
Code Compliance Officer 1 1
Administrative Assistant II 0.25 0.25
Total Positions 5.25 5.25

1.32M 1.53M
Expenditures by Category

4.3 Community Development

Page 69 ends

Police Department
Our Purpose
Enhance the quality of life for those who live, work, and play in Grover Beach.

Our Principles
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.

Department Motto
"Committed to Our Community"
The Grover Beach Police Department is a 24/7 comprehensive and technologically advanced community policing department divided into two service Divisions: Field Operations Division and Support Services Division.

The Field Operations Division consists of the Patrol Bureau, which is managed by one (1) Police Commander who oversees four (4) Sergeants, thirteen (13) officers and two (2) Community Service Officers. The Sergeants and Officers work 12-hour patrol shifts staffed with a minimum of two officers, with most shifts having between three and four officers on duty at one time. Shift staffing is based on the day of the week, the time of the day, and the call volume history. In 2024, the Patrol Bureau completed 17,421 calls for service and took 1,620 reports from community members.

The Support Services Division is managed by one (1) Police Commander who oversees the Detective Bureau, Records Bureau, Contract Dispatch Services, Employee Training, and Budget Management. The Commander manages eight personnel, consisting of one (1) Detective Sergeant, three (3) Detectives, two (2) Records/Property Technicians, one (1) Community Service Officer, and one (1) Police Management Analyst.

The Grover Beach Police Department Detective Bureau consists of one full-time Detective Sergeant, three full-time Detectives, one Community Service Officer, and one Police Management Analyst who investigate crimes ranging from petty thefts to homicides. For 2024, the Detective Bureau authored 265 reports and served 39 search warrants. The Detective Bureau has one full-time Detective assigned solely to the Cannabis Regulatory Program for the city. This detective oversees the city’s commercial cannabis businesses by conducting employment background investigations, business inspections, and financial audits of each business annually.

The Records Bureau is staffed by two Full-Time Records/Property Technicians who processed over 1,620 reports for 2024. The Records Bureau is responsible for reporting all crime statistics to various State and Federal law enforcement agencies, filing police reports with the District Attorney for prosecution and processing front counter requests for assistance from our community members. Additionally, the Records and Property Bureau processed 159 District Attorney Discovery requests and booked 686 items of evidence into the property room.

4.4 Police Department
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 70 FY 2024-25 Highlights
Met the City Council's Major City Goals for Public Safety by accomplishing the work programs specific to the Police Department.

Promoted a new Chief of Police and Police Commander from within the agency.

Hired a new lateral Police Sergeant.

Police Department staffing goals were met, and the department is fully staffed.

Responded to 21,323 calls for service, an 18% decrease from 2023.

Reduced overall crime by 5% in 2024.

Burglaries were down by 43%, and thefts were down 14% from 2023.

Arrests were up by 4% from 2023.

Citations were up 6% from 2023.

Worked with other City staff and cannabis industry representatives to continue safe operations of the commercial cannabis industry in the city.

Coordinated homeless outreach and assistance with multiple non-profit and governmental agencies to reduce the vagrancy behavior in the city.

Engaged the community on the Police Department social media platforms that consist of Facebook, Instagram, Twitter, Nextdoor and Ring Neighbors allowing the department to communicate with approximately 20,000 followers.

Enhanced our outreach with our local youth by hosting multiple events, including Movie Night in the Park, Trunk or Treat, Drone Flight Academy, and various elementary school presentations.

Continued to build a dynamic Health and Wellness program utilizing grant funding that created proper nutritional options in the break room, a full-sized fitness center, a leisure room for stress recovery and a proper life/work balance for employees.

FY 2025-27 Key Department Initiatives
In line with the City Council's goals, the Police Department will champion contemporary public safety services (police, fire, emergency medical services) by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.

Continue to enhance PD technology in the department by deploying e-citations, additional community cameras, new Taser 10s, and body cam refresh.

Focus on community traffic concerns and deploy one full-time motorcycle officer.

Work to identify a location for a new police facility, along with a funding plan.

Continue work to complete the 2023-2026 strategic plan initiatives.

Heavy focus on retaining current staff and providing career development training and opportunities.

Bolster the department's wellness program to include peer counseling and mental health resources.

Enhance community outreach efforts to our senior citizen and Spanish-speaking community members.

4.4 Police Department

Page 71 ends

Performance Measures
Performance Measure 1: Achieve a Police Department customer satisfaction rating of 95% or higher each year.

Customer satisfaction rating on responses to surveys conducted through SPIDRTech Software on response to calls for service.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 95% 95% 95%
Actual 90% 95%
Not Available due
to dispatch
change in 2024
Notes: No additional notes.

Performance Measure 2:Maintain 24 sworn staff positions filled and deployed on duty.

Percentage of days of the year the department is able to recruit and retain 24 sworn staff members and who are available for service.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 100% 100% 100%
Actual 87% 91% 96%
Notes: No additional notes.

Performance Measure 3: Percentage of officers who have received updated training in Crisis Intervention, De-escalation, Implicit Bias and Principled Policing concepts Percentage of officers assigned to complete the training as department resources can provide.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 66% 90% 100%
Actual 75% 90% 83%
Notes: No additional notes.

4.4 Police Department
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 72 FY26 Expenditures by Fund
General Fund $7,218,564 94.53%
Equipment Replacement Fund $271,466 3.55%
Public Safety Grant Fund $146,500 1.92%
FY27 Expenditures by Fund
General Fund $7,601,604 94.57%
Equipment Replacement Fund $289,928 3.61%
Public Safety Grant Fund $146,500 1.82%
FY26 Expenditures by Division
Police Operations $4,630,400 60.63%
Police Support Services $2,067,100 27.07%
Investigations $650,589 8.52%
Cannabis Regulatory Unit $288,441 3.78%
FY27 Expenditures by Division
Police Operations $4,857,000 60.43%
Police Support Services $2,221,817 27.64%
Investigations $664,428 8.27%
Cannabis Regulatory Unit $294,787 3.67%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
Cannabis Regulatory Unit $226,691 $294,665 $290,847 $288,441 $294,787 Police Support Services $2,059,240 $2,066,460 $1,926,269 $2,067,100 $2,221,817 Police Operations $3,535,078 $5,338,318 $4,491,422 $4,630,400 $4,857,000 Investigations $578,048 $783,662 $637,455 $650,589 $664,428 Total Expenditures $6,399,058 $8,483,105 $7,345,993 $7,636,530 $8,038,033

7.64M 8.04M

7.64M 8.04M
Expenditures by Division

4.4 Police Department

Page 73 ends

Expenditures by Category
Historical Expenditures by Category
Salaries and Benefits Supplies and Services Minor Capital Debt Service Interdepartmental Charge
FY26 Expenditures by Category
Salaries and Benefits $5,397,172 70.68%
Supplies and Services $1,952,892 25.57%
Debt Service $271,466 3.55%
Minor Capital $15,000 0.20%
FY27 Expenditures by Category
Salaries and Benefits $5,701,900 70.94%
Supplies and Services $2,031,204 25.27%
Debt Service $289,928 3.61%
Minor Capital $15,000 0.19%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Salaries and Benefits $4,318,845 $4,948,372 $5,348,190 $5,348,190 $5,397,172 $5,701,900 Supplies and Services $1,510,591 $1,974,699 $1,745,574 $1,769,074 $1,952,892 $2,031,204 Minor Capital $423,916 $1,490,806 $15,000 $15,000 $15,000 $15,000 Debt Service $142,110 $68,729 $213,729 $213,729 $271,466 $289,928 Interdepartmental Charge $3,596 $500 - - - -
Total Expenditures $6,399,058 $8,483,105 $7,322,493 $7,345,993 $7,636,530 $8,038,033 $6M
$6M $6M
$8M
$7M $8M $8M
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M

7.64M 8.04M
Expenditures by Category

4.4 Police Department
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 74 Full-Time Equivalent Positions
FY 2025-
26 FY 2026-27
Police Chief 1 1
Commander 2 2
Sergeant 5 5
Senior Police Officer 4 4
Police Officer 9 9
Detective 3 3
Part-Time Police Officer 0.5 0.5
Records / Property Technician 2 2
Management Analyst 2 2
Community Service Officer I 1.5 1.5
Community Service Officer II 1 1
Total Positions 31 31

4.4 Police Department

Page 75 ends

Public Works
Mission Statement
To provide reliable, cost-effective and responsive water, wastewater and storm water services; to maintain and improve city facilities, streets, parks, vehicles and equipment in order to assure their beneficial use for the community; and to provide development review services with a goal to implement City Municipal and Development Codes in a manner that encourages investment in the community while assuring adherence to adopted standards.

Overview
The Public Works Department is responsible for the design, construction, operation and maintenance of the City's public infrastructure.

Services and Structure
The Department consists of two divisions that are responsible for various programs. The Maintenance and Operations Division operates, maintains, constructs, and improves the City's infrastructure, facilities, vehicles and equipment. The Engineering Services Division provides for regulatory compliance, engineering design, construction management, resource management and construction related to city infrastructure and facilities and development review services for private developments.

Maintenance Operations
The Maintenance and Operations Division is responsible for the water distribution and treatment system, the wastewater collection system, the stormwater collection system and maintenance and repairs to all City infrastructure which includes facilities, streets, sidewalks, bike paths, signs and markings, parks, playgrounds, street landscaping, street trees, street sweeping contract services and contract traffic signal and street light maintenance services. The division is also responsible for maintenance of all City vehicles and equipment.

Engineering Services
The Engineering Services Division includes four functions: Engineering Design, Development Review, Resource Management and Regulatory Compliance.

Engineering Design develops and implements the Capital Improvement Program, provides design and construction management services for all capital improvement and infrastructure improvement projects to continually update and improve City infrastructure including parks and facilities, streets, water, sewer, and storm drain systems.

Development Review provides for engineering review and inspection of all privately funded public improvements within the City's right-of-way as well as regulatory compliance for private grading and drainage.

Resource Management involves participation in and coordination with regional resource management groups and agencies for resources such as surface water and groundwater.

Regulatory Compliance implements programs to meet regulatory requirements for accessibility, wastewater collection systems, water treatment and distribution, equipment air quality standards and solid waste collection and recycling.

FY 2024-25 Highlights
Continued to scan record plans and implement electronic filing system and GIS system for City asset management input Completed design of all remaining phases of Ramona Garden Park Rehabilitation Project Awarded contract for Ramona Park Rehabilitation Project Phases 1 & 2 with construction to begin June 2025, with $3.1 million in funding from CDBG grant award.

Completed construction of West Grand Avenue Streetscape project from 4th to 8th Streets, the City’s largest capital project to date Completed a portion of CIP 5002 sewer main upgrades in West Grand Avenue and S. 4th Street as part of the West Grand Avenue Streetscape Project

4.5 Public Works
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 76 Completed design of Measure K-14 CIP 2295-18, maintenance micro sealing of various streets previously completed with Measure K-14
Installed additional water main zone valves to improve operations and reduce scope of shutdowns Completed CIP 439, tank rehabilitation of Water Tank 3
Implemented department communications, training and coordination recommendations from Organizational Assessment Implemented water treatment and distribution certification training along with training for system operation and sample collection Continued development review improvements including ongoing upgrades to City Standards and Specifications and EP&L integration for permit reviews
Implemented Cartegraph Asset Management program and asset input Automated USA/811 utility mark-out system through the asset management program FY 2025-27 Key Department Initiatives
Continue focus on planting trees in parks and on major corridors Continue actions to remove disability accessibility barriers city-wide Continue work on Corporation Yard expansion and site improvements Complete sidewalk infill through implementation of public/private partnerships Complete design of Measure K-14 CIP 2295-19 (Brighton, Ramona, North 2nd, North 5th, North 6th & North 7th) Complete construction of Measure K-14 CIP 2295-18
Implement critical sewer and water system upgrades as funding allows Continue to implement department recommendations from Organizational Assessment Continue to develop and implement department training programs Continue development review improvements including ongoing upgrades to City Standards and Specifications Continue to scan record plans and implement electronic filing system and GIS system

4.5 Public Works

Page 77 ends

Performance Measures
Performance Measure 1: Percentage of development applications returned on schedule Percentage of development applications returned to the applicant within the City-identified 10-day review standard. As of April 2025, changed to 21-day review standard.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 90% 90% 90% 90%
Actual - 95% 23%
Notes: Department began tracking this measure in FY 2022-23. Lower percentage in FY 2024-25 due to workload impacts from Staffing Vacancies
Performance Measure 2: Timely responses to inquiries
Percent of customer calls returned within one day.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 90% 90% 90% 90%
Actual - 95% 90%
Notes: No additional notes.

Performance Measure 3: Lane miles of repaved or repaired streets FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - - 6.61 3.0 1.0
Actual - 2.44 1.40
Notes: The City has delayed CIP Project 2285 to allow a buffer period following the completion of construction on West Grand Avenue. Construction for CIP Project 2285 is expected to start in FY 25-26. CIP Project 2295-17 was delayed due to a delay to CIP 5002 (Sewer Upgrade Project) as a result of a wastewater rate structure challenge. Should the City increase sewer rates, construction of CIP Project 2295-17 could begin the second half of FY25-26.

Performance Measure 4: Percentage of maintenance requests responded to within one week Percentage of maintenance service requests that receive a response and the work order is processed within one week of receipt.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 83% 85% 87% 89%
Actual - 90% 90%
Notes: Department began tracking this measure in FY 2022-23.

Performance Measure 6: Number of unplanned water service interruptions Number of unplanned water service interruptions in the prior fiscal year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - <2 <5 <5 <5

4.5 Public Works
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 78 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Actual 1 6 31
Notes: Increased number of unplanned water service interruptions given aging infrastructure and insufficient funding to program capital improvement projects for system maintenance and improvements.

Performance Measure 7: Number of sewer system failures
Number of sewer system backups resulting in overflows in the prior fiscal year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 0 0 0 0
Actual 0 0 1
Notes: No additional notes.

FY26 Expenditures by Fund
Water Fund $3,117,005 47.24%
General Fund $1,882,569 28.53%
Wastewater Fund $882,474 13.37%
Gas Tax Fund $296,490 4.49%
Street Construction Designated
Fund (K-14)
$240,728 3.65%
Equipment Replacement Fund $90,737 1.38%
Local Transportation Fund (LTF) $82,400 1.25%
Water Conservation Fund $6,171 0.09%
FY27 Expenditures by Fund
Water Fund $3,210,387 50.60%
General Fund $1,724,158 27.17%
Wastewater Fund $663,687 10.46%
Gas Tax Fund $305,538 4.82%
Street Construction Designated
Fund (K-14)
$243,465 3.84%
Equipment Replacement Fund $106,545 1.68%
Local Transportation Fund (LTF) $84,872 1.34%
Water Conservation Fund $6,208 0.10%

6.6M 6.34M

4.5 Public Works

Page 79 ends

FY26 Expenditures by Division
Water $3,117,005 47.24%
Facility Maintenance $1,647,831 24.97%
Street Maintenance $904,902 13.71%
Wastewater $590,720 8.95%
Storm Water $291,754 4.42%
City Shop/Corp Yard $40,191 0.61%
Water Conservation $6,171 0.09%
FY27 Expenditures by Division
Water $3,210,387 50.60%
Facility Maintenance $1,478,516 23.30%
Street Maintenance $941,417 14.84%
Wastewater $340,140 5.36%
Storm Water $323,547 5.10%
City Shop/Corp Yard $44,644 0.70%
Water Conservation $6,208 0.10%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
Wastewater $552,934 $407,644 $373,718 $590,720 $340,140 Water $2,648,704 $2,895,629 $3,002,172 $3,117,005 $3,210,387 Storm Water $306,361 $327,341 $310,060 $291,754 $323,547 Facility Maintenance $1,254,448 $1,241,359 $1,572,449 $1,647,831 $1,478,516 Street Maintenance $814,018 $923,091 $961,016 $904,902 $941,417 City Shop/Corp Yard $37,901 $46,177 $42,504 $40,191 $44,644 Water Conservation $19,081 $4,771 $14,100 $6,171 $6,208 Total Expenditures $5,633,446 $5,846,011 $6,276,018 $6,598,575 $6,344,861

6.6M 6.34M
Expenditures by Division

4.5 Public Works
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 80 Expenditures by Category
Historical Expenditures by Category
Supplies and Services Salaries and Benefits Debt Service Minor Capital Other Interdepartmental Charge
Major Capital
FY26 Expenditures by Category
Supplies and Services $4,077,518 61.79%
Salaries and Benefits $1,727,578 26.18%
Minor Capital $416,200 6.31%
Debt Service $372,279 5.64%
Major Capital $5,000 0.08%
FY27 Expenditures by Category
Supplies and Services $4,073,845 64.21%
Salaries and Benefits $1,835,402 28.93%
Debt Service $329,865 5.20%
Minor Capital $100,750 1.59%
Major Capital $5,000 0.08%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Transfers Out - - - $75,000 - -
Salaries and Benefits $1,869,100 $1,700,644 $2,135,359 $2,135,359 $1,727,578 $1,835,402 Supplies and Services $3,204,639 $3,597,610 $3,289,075 $3,525,116 $4,077,518 $4,073,845 Minor Capital $156,993 $124,105 $95,000 $202,500 $416,200 $100,750 Major Capital $11,280 $4,401 $5,000 $5,000 $5,000 $5,000 Debt Service $95,878 $92,822 $333,043 $333,043 $372,279 $329,865 Interdepartmental Charge $13,200 $11,564 - - - -
Other $282,356 $314,866 - - - -
$5M
$6M $6M $6M $6M
$7M $6M
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M

6.6M 6.34M
Expenditures by Category

4.5 Public Works

Page 81 ends

Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Total Expenditures $5,633,446 $5,846,011 $5,857,477 $6,276,018 $6,598,575 $6,344,861 Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Public Works Director 1 1
Administrative Analyst - Confidential 1 1
Capital Improvement Project Manager 1 1
Associate Engineer 1 1
Senior Engineer 1 1
Engineering Technician 0 0
Public Works Supervisor 1 1
Public Works Superintendent 1 1
Maintenance Worker III 1 1
Maintenance Worker II 1 1
Maintenance Worker I 4 4
Fleet Maintenance Coordinator 1 1
Administrative Assistant II 0.75 0.75
Total Positions 14.75 14.75

4.5 Public Works
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 82 Non-departmental
Overview
In addition to expenditures that are directly related to departmental operations, there are also significant expenditures that are not directly attributable to a particular department. The largest of the non-departmental expenditures is related to the City’s contract with the Five Cities Fire Authority (FCFA) for fire protection and suppression services, which totals $2,989,285 in FY 2025-26. Other non-departmental expenditures for FY 2025-26 include unfunded pension liability costs ($1,233,228), liability insurance premiums ($653,535), and contract City Attorney legal services ($259,560). Additionally, the FY 2026-25 fiscal year contains CDBG funding in the amount of $2,681,599 for the Ramona Park Project.

FY26 Expenditures by Fund
General Fund $8,373,538 79.33%
Water Fund $699,845 6.63%
Trust and Agency Fund $453,114 4.29%
Road Maintenance and
Rehabilitation Account
$299,000 2.83%
Parks Construction Fund $282,541 2.68%
Recreation Facilities Development
Impact Fee Fund
$100,129 0.95%
Local Transportation Fund (LTF) $100,000 0.95%
Parks Facilities Development
Impact Fee Fund
$78,541 0.74%
Gas Tax Fund $75,000 0.71%
Wastewater Fund $73,130 0.69%
Street Construction Designated
Fund (K-14)
$20,600 0.20%
FY27 Expenditures by Fund
General Fund $5,845,755 85.76%
Water Fund $490,000 7.19%
Wastewater Fund $430,851 6.32%
Gas Tax Fund $50,000 0.73%

10.6M 6.82M

4.6 Non-departmental

Page 83 ends

Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
Non-Departmental $6,166,801 $7,746,638 $9,239,215 $10,555,438 $6,816,606 Total Expenditures $6,166,801 $7,746,638 $9,239,215 $10,555,438 $6,816,606 Expenditures by Category
Historical Expenditures by Category
Supplies and Services Transfers Out Salaries and Benefits Minor Capital Debt Service Other
Interdepartmental Charge
FY26 Expenditures by Category
Transfers Out $5,087,924 48.20%
Supplies and Services $4,208,668 39.87%
Salaries and Benefits $1,233,228 11.68%
Debt Service $25,618 0.24%
FY27 Expenditures by Category
Supplies and Services $4,144,171 60.80%
Transfers Out $1,387,041 20.35%
Salaries and Benefits $1,259,773 18.48%
Debt Service $25,620 0.38%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Transfers Out $1,854,500 $1,939,260 $1,814,305 $3,999,305 $5,087,924 $1,387,041 Salaries and Benefits $598,288 $1,116,503 $1,105,000 $1,105,000 $1,233,228 $1,259,773 Supplies and Services $3,311,714 $4,240,493 $3,936,890 $4,026,890 $4,208,668 $4,144,171 Expenditures by Division
$7M
$10M
$6M
$8M $7M
$11M
$7M
-$170,527 -$119,533 -$81,964
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$5M
0 $5M
$10M
$15M

10.6M 6.82M
Expenditures by Category

4.6 Non-departmental
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 84 Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Minor Capital $363,268 $524,121 - $102,500 - -
Debt Service $128,720 $8,199 $5,520 $5,520 $25,618 $25,620 Interdepartmental
Charge -$119,533 -$81,964 - - - -
Other $29,843 $26 - - - -
Total Expenditures $6,166,801 $7,746,638 $6,861,715 $9,239,215 $10,555,438 $6,816,606

4.6 Non-departmental

Page 85 ends

Funds Overview

5.0 Funds Overview
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 86 General Fund - 101
The General Fund is used to account for most financial resources and activities governed by the appropriation process. It includes all revenues related to taxes, changes for services, permits and fees, as well as some intergovernmental revenues. Expenditures include those most common to general government, such as public safety, administration, and public works.

Sources of Funding
FY 2025-26
Budget
FY 2026-27
Budget
Revenues
Property Tax $6,459,000 $6,781,000
Sales Tax $5,863,000 $6,100,152
Cannabis Tax $1,070,000 $1,081,000
Transient Occupancy Tax
(TOT) $1,331,000
$1,371,000
Franchise Fees $965,000 $1,023,000
Other Taxes $207,000 $211,000
Licenses & Permits $546,000 $557,000
Fines $35,153 $38,000
Use of Money and Property $657,300 $644,380
Intergovernmental $2,952,603 $167,195
Charges for Current Services $810,208 $837,511
Transfers In $683,150 $703,645
Total Revenues $21,428,114 $19,387,503
Expenditures
Administrative Services $659,026 $693,863
City Manager's Office $1,910,518 $1,942,426
Community Development $1,322,890 $1,532,469
Police $7,218,564 $7,601,604
Public Works $1,882,569 $1,724,158
Non-Departmental $5,158,939 $5,261,755
Transfers Out $3,214,599 $584,000
Total Expenditures $21,367,105 $19,340,275
Revenues Over/(Under) Expenditures $61,009 $47,228
FY 2025-26 Revenue from other agencies includes Community Development Block Grant reimbursement for Ramona Park project in the amount of $2,681,599 and $107,504 in remaining American Rescue Plan Act Funds for revenue replacement.

5.1 General Fund

Page 87 ends

Expenditures by Category
Historical Expenditures by Category
Salaries and Benefits Supplies and Services Transfers Out Minor Capital Debt Service Other
Interdepartmental Charge
FY26 Expenditures by Category
Salaries and Benefits $9,955,855 46.59%
Supplies and Services $8,083,533 37.83%
Transfers Out $3,214,599 15.04%
Minor Capital $87,500 0.41%
Debt Service $25,618 0.12%
FY27 Expenditures by Category
Salaries and Benefits $10,417,055 53.86%
Supplies and Services $8,313,600 42.99%
Transfers Out $584,000 3.02%
Debt Service $25,620 0.13%
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised Budget
FY 2025-26
Budget
FY 2026-27
Budget
Transfers Out $540,027 $628,987 $850,000 $3,214,599 $584,000 Salaries and Benefits $8,536,085 $8,937,113 $9,580,595 $9,955,855 $10,417,055 Supplies and Services $6,228,455 $12,733,540 $7,534,585 $8,083,533 $8,313,600 Minor Capital $880,111 $1,964,288 $110,000 $87,500 -
Debt Service $154,340 $33,818 $31,140 $25,618 $25,620
Interdepartmental Charge $1 $280 - - -
Other $75 $26 - - -
Total Expenditures $16,339,094 $24,298,053 $18,106,320 $21,367,105 $19,340,275 $14M
$16M $16M
$24M
$18M
$21M
$19M
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $10M
$20M
$30M

21.4M 19.3M
Expenditures by Category

5.1 General Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 88 Equipment Replacement Fund - 105
The equipment replacement fund is a separate fund established for the purpose of making expenditures for major repair or replacement of equipment necessary for continuing operation of city services. This includes vehicles or major pieces of equipment. In the City's Financial Statements, the General Fund and Equipment Replacement Fund are reported together.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $47,437 $50,000 $106,448 $93,274 $239,071 Revenues
Transfers In $153,061 $136,667 $420,305 $533,000 $445,902 Total Revenues $153,061 $136,667 $420,305 $533,000 $445,902 Expenditures
Supplies and Services $7,848 $9,093 $13,000 $25,000 $25,000 Minor Capital $541 $2,397 $155,000 - $58,350
Debt Service $142,110 $68,729 $265,479 $362,203 $338,123 Total Expenditures $150,498 $80,219 $433,479 $387,203 $421,473 Total Revenues Less Expenditures $2,563 $56,448 -$13,174 $145,797 $24,429 Ending Fund Balance $50,000 $106,448 $93,274 $239,071 $263,500

5.1.1 Equipment Replacement Fund

Page 89 ends

Street Construction Designated Fund (K-14) - 201
The Street Construction Designated Fund (K-14) (previously known as the Street Rehabilitation and Repair Fund) are funds generated by voter-approved Measure K-14 bond sales and are used for the rehabilitation and repair of local streets.

FY 2025-26 assumes the issuance of the $10 million in Measure K-14 street repair bonds.

Comprehensive Fund Summary
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $9,434,417 $5,838,955 $3,665,166 $729,789 $7,198,461 Revenues
Transfers In $96,866 $38,000 $40,000 $40,000 $42,400
Use of Money and Property $112,763 $211,883 $10,000 $10,000 $10,600 Charges for Services $94,787 $800 $50,000 $50,000 $53,000 Other - - - $10,000,000 -
Total Revenues $304,416 $250,683 $100,000 $10,100,000 $106,000 Expenditures
Salaries and Benefits $216,460 $205,829 $250,627 $235,836 $238,427 Supplies and Services $1,538 $4,713 $24,750 $25,493 $5,038 Major Capital $3,681,880 $2,213,929 $2,760,000 $3,370,000 $3,530,000 Total Expenditures $3,899,878 $2,424,471 $3,035,377 $3,631,328 $3,773,465 Total Revenues Less Expenditures -$3,595,462 -$2,173,789 -$2,935,377 $6,468,672 -$3,667,465 Ending Fund Balance $5,838,955 $3,665,166 $729,789 $7,198,461 $3,530,996

5.2 Street Construction Designated Fund (K-14)
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 90 Gas Tax Fund - 205
The Gas Tax funds are restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs of the public street system. Income is derived from state excise taxes on fuel and is allocated to the City in accordance with Street and Highway Code Section 2103-2108.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $169,503 $116,976 $119,960 $66,209 $6,968 Revenues
Use of Money and Property $2,565 $2,719 $3,000 $3,000 $3,180 Revenue from Other Agencies $336,733 $363,070 $384,249 $384,249 $407,304 Charges for Services - $1,570 - - -
Total Revenues $339,298 $367,359 $387,249 $387,249 $410,484 Expenditures
Transfers Out $85,621 $3,000 $153,000 $75,000 $50,000
Supplies and Services $304,286 $361,375 $288,000 $296,490 $305,538 Minor Capital $1,917 - - - -
Major Capital - - - $75,000 -
Total Expenditures $391,825 $364,375 $441,000 $446,490 $355,538 Total Revenues Less Expenditures -$52,527 $2,984 -$53,751 -$59,241 $54,946 Ending Fund Balance $116,976 $119,960 $66,209 $6,968 $61,914

5.3 Gas Tax Fund

Page 91 ends

Road Maintenance and Rehabilitation Account - 210
The Road Maintenance and Rehabilitation Fund includes funding from the recently passed SB 1 gas tax by the State of California. The fund is mandated to separately track the expenditures of the new fees.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $340,331 $333,508 $347,950 $351,450 $401,320 Revenues
Use of Money and Property $7,517 $15,100 $2,500 $2,500 - Revenue from Other Agencies $284,660 $298,342 $300,000 $346,370 $350,000 Total Revenues $292,177 $313,442 $302,500 $348,870 $350,000 Expenditures
Transfers Out $299,000 $299,000 $299,000 $299,000 -
Total Expenditures $299,000 $299,000 $299,000 $299,000 - Total Revenues Less Expenditures -$6,823 $14,442 $3,500 $49,870 $350,000 Ending Fund Balance $333,508 $347,950 $351,450 $401,320 $751,320

5.4 Road Maintenance and Rehabilitation Account
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 92 Local Transportation Fund (LTF) - 215
The Local Transportation Fund accounts for apportioned revenue from the state and is restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs associated with the public street system, as well as transit-related costs. Income derived from state and federal grants generally administered by SLOCOG and Caltrans Local Assistance and include State Highway Account Urban and Regional (USHA and RSHA) Funds.

Comprehensive Fund Summary
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised
Budget
FY 2025-
26 Budget
FY 2026-
27 Budget
Beginning Fund Balance $1,357,425 $1,790,108 $2,054,828 $535,828 $618,793 Revenues
Use of Money and Property $28,932 $61,168 $22,000 $1,500 $1,500 Revenue from Other Agencies $441,601 $292,085 $443,500 $268,500 $259,601 Total Revenues $470,533 $353,253 $465,500 $270,000 $261,101 Expenditures
Transfers Out - - $1,900,000 $100,000 -
Supplies and Services $37,850 $88,533 $84,500 $87,035 $84,872 Total Expenditures $37,850 $88,533 $1,984,500 $187,035 $84,872 Total Revenues Less Expenditures $432,683 $264,720 -$1,519,000 $82,965 $176,229 Ending Fund Balance $1,790,108 $2,054,828 $535,828 $618,793 $795,022

5.5 Local Transportation Fund (LTF)

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Public Safety Grant Fund - 230
The purpose of the Police Grants Fund is to receive and track all Police Department State grant revenue and expenditures in accordance with prescribed regulations. Revenue for this fund is comprised of grants from the COPS/SLESF Grant. The Citizens Option for Public Safety Program's Supplemental Law Enforcement Services Fund (COPS/SLESF) grant was established in 1996. Compliant cities are allocated a proportionate share of COPS funds by the State exclusively for the purpose of funding supplemental front-line law enforcement services. Under the standard grant program allocation, the City of Grover Beach is eligible to receive a minimum grant amount of $100,000 each year, with an additional proportionate share based on population estimates determined by the California Department of Finance. Funds for this program cannot supplant existing funding and are to be used for personnel and/or equipment.

While the COPS programs intended to be on-going and permanent, there is no guarantee that continued funding will be available.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-24
Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-
27 Budget
Beginning Fund Balance $222,031 $327,186 $148,185 $191,685 $246,685 Revenues
Use of Money and Property $5,352 $10,519 $5,000 $1,500 $1,500 Revenue from Other Agencies $165,271 $186,159 $185,000 $200,000 $206,000 Total Revenues $170,623 $196,678 $190,000 $201,500 $207,500 Expenditures
Salaries and Benefits $24,738 - - - -
Supplies and Services $22,315 $240,736 $131,500 $131,500 $131,500 Minor Capital $18,415 $134,944 $15,000 $15,000 $15,000
Total Expenditures $65,468 $375,679 $146,500 $146,500 $146,500 Total Revenues Less Expenditures $105,155 -$179,001 $43,500 $55,000 $61,000 Ending Fund Balance $327,186 $148,185 $191,685 $246,685 $307,685

5.6 Public Safety Grant Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 94 Parks Construction Fund - 240
This fund receives Park-In-Lieu fees from developers and is restricted to the acquisition, construction, major improvements, and rehabilitation.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $37,916 $49,735 $176,103 $384,903 $114,162 Revenues
Use of Money and Property $815 $2,573 $800 $800 -
Charges for Services $11,004 $123,795 $208,000 $11,000 - Total Revenues $11,819 $126,368 $208,800 $11,800 -
Expenditures
Transfers Out - - - $282,541 -
Total Expenditures - - - $282,541 -
Total Revenues Less Expenditures $11,819 $126,368 $208,800 -$270,741 - Ending Fund Balance $49,735 $176,103 $384,903 $114,162 $114,162

5.7 Parks Construction Fund

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Transportation Development Impact Fee Fund - 250
The Transportation Development Impact Fee Fund accounts for fees generated by development for the construction of transportation improvements.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-
26 Budget
FY 2026-27
Budget
Beginning Fund Balance $22,534 $115,285 $189,865 $206,365 $387,239 Revenues
Use of Money and Property $1,379 $5,419 $500 $500 -
Charges for Services $93,784 $72,898 $16,000 $180,374 $672,560 Total Revenues $95,163 $78,317 $16,500 $180,874 $672,560 Expenditures
Supplies and Services $2,232 $4,179 - - -
Total Expenditures $2,232 $4,179 - - -
Total Revenues Less Expenditures $92,931 $74,138 $16,500 $180,874 $672,560 Ending Fund Balance $115,465 $189,423 $206,365 $387,239 $1,059,799

5.8 Transportation Development Impact Fee Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 96 Law Enforcement Development Impact Fee Fund - 251
The Law Enforcement Development Impact Fee Fund accounts for fees generated by development. These funds may be used for law enforcement improvements related to expansion.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-
26 Budget
FY 2026-27
Budget
Beginning Fund Balance $11,549 $13,534 $19,511 $20,911 $53,554 Revenues
Use of Money and Property $241 $566 $200 $200 -
Charges for Services $3,976 $7,889 $1,200 $32,443 $138,141 Total Revenues $4,217 $8,456 $1,400 $32,643 $138,141
Expenditures
Supplies and Services $2,232 $2,479 - - -
Total Expenditures $2,232 $2,479 - - -
Total Revenues Less Expenditures $1,985 $5,977 $1,400 $32,643 $138,141 Ending Fund Balance $13,534 $19,511 $20,911 $53,554 $191,695

5.9 Law Enforcement Development Impact Fee Fund

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Administrative Development Impact Fee Fund - 252
The Administrative Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Administrative improvements related to expansion.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $23,564 $27,807 $30,265 $32,165 $62,043 Revenues
Use of Money and Property $477 $990 $400 $400 -
Charges for Services $5,998 $5,018 $1,500 $29,478 $35,514 Total Revenues $6,475 $6,008 $1,900 $29,878 $35,514
Expenditures
Supplies and Services $2,232 $3,550 - - -
Total Expenditures $2,232 $3,550 - - -
Total Revenues Less Expenditures $4,243 $2,458 $1,900 $29,878 $35,514 Ending Fund Balance $27,807 $30,265 $32,165 $62,043 $97,557

5.10 Administrative Development Impact Fee Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 98 Fire Development Impact Fee Fund - 253
The Fire Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Fire improvements related to expansion.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $12,931 $13,603 $10,081 $12,181 $20,966 Revenues
Use of Money and Property $253 $585 $200 $200 -
Charges for Services $2,652 $7,443 $1,900 $8,585 $6,810 Total Revenues $2,905 $8,028 $2,100 $8,785 $6,810
Expenditures
Transfers Out - $8,000 - - -
Supplies and Services $2,232 $3,550 - - -
Total Expenditures $2,232 $11,550 - - -
Total Revenues Less Expenditures $672 -$3,522 $2,100 $8,785 $6,810 Ending Fund Balance $13,603 $10,081 $12,181 $20,966 $27,776

5.11 Fire Development Impact Fee Fund

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Stormwater Development Impact Fee Fund - 254
The Stormwater Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Stormwater related expansion.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $125,427 $148,073 $163,541 $172,641 $203,044 Revenues
Use of Money and Property $2,473 $5,112 $2,100 $2,100 - Charges for Services $22,406 $13,906 $7,000 $28,303 $47,997 Total Revenues $24,878 $19,018 $9,100 $30,403 $47,997
Expenditures
Supplies and Services $2,232 $3,550 - - -
Total Expenditures $2,232 $3,550 - - -
Total Revenues Less Expenditures $22,646 $15,468 $9,100 $30,403 $47,997 Ending Fund Balance $148,073 $163,541 $172,641 $203,044 $251,041

5.12 Stormwater Development Impact Fee Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 100 Wastewater Development Impact Fee Fund - 255
The Wastewater Development Impact Fee Fund accounts for fees generated by development. These funds may be used for wastewater related expansion.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $276,726 $232,719 $300,311 $241,511 $298,282 Revenues
Use of Money and Property $5,331 $9,077 $4,200 $4,200 - Charges for Services $38,093 $67,662 $22,000 $52,571 $43,994 Total Revenues $43,423 $76,739 $26,200 $56,771 $43,994
Expenditures
Transfers Out $85,000 $5,596 $85,000 - -
Supplies and Services $2,232 $3,550 - - -
Total Expenditures $87,232 $9,146 $85,000 - -
Total Revenues Less Expenditures -$43,809 $67,592 -$58,800 $56,771 $43,994 Ending Fund Balance $232,917 $300,311 $241,511 $298,282 $342,276

5.13 Wastewater Development Impact Fee Fund

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Parks Facilities Development Impact Fee Fund - 256
The Parks Facilities Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Parks Facilities related expansion.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-24
Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-
27 Budget
Beginning Fund Balance $311,195 $216,719 $96,800 $129,300 $199,227 Revenues
Use of Money and Property $5,774 $6,799 $5,500 $5,500 - Charges for Services $23,881 $108,003 $27,000 $142,968 $63,372 Total Revenues $29,655 $114,801 $32,500 $148,468 $63,372 Expenditures
Transfers Out $121,898 $231,170 - $78,541 -
Supplies and Services $2,232 $3,550 - - -
Total Expenditures $124,131 $234,720 - $78,541 -
Total Revenues Less Expenditures -$94,476 -$119,919 $32,500 $69,927 $63,372 Ending Fund Balance $216,719 $96,800 $129,300 $199,227 $262,599

5.14 Parks Facilities Development Impact Fee Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 102 Recreation Facilities Development Impact Fee Fund - 257 The Recreation Facilities Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Recreation related expansion.

Comprehensive Fund Summary
Category FY 2022-23
Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-
27 Budget
Beginning Fund Balance $97,403 $49,524 $58,458 $65,058 $16,754 Revenues
Use of Money and Property $1,084 $1,819 $1,600 $1,600 - Charges for Services $4,269 $10,665 $5,000 $50,225 $11,329 Total Revenues $5,353 $12,484 $6,600 $51,825 $11,329
Expenditures
Transfers Out $51,000 - - $100,129 -
Supplies and Services $2,232 $3,550 - - -
Total Expenditures $53,232 $3,550 - $100,129 -
Total Revenues Less Expenditures -$47,879 $8,934 $6,600 -$48,304 $11,329 Ending Fund Balance $49,524 $58,458 $65,058 $16,754 $28,083

5.15 Recreation Facilities Development Impact Fee Fund

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Water Development Impact Fee Fund - 258
The Water Development Impact Fee Fund accounts for fees generated by development. These funds may be used for water related expansion.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-
26 Budget
FY 2026-27
Budget
Beginning Fund Balance - -$1,111 $36,892 $36,892 $96,550 Revenues
Use of Money and Property $359 $1,102 - - -
Charges for Services $33,015 $65,451 $25,000 $59,658 $53,287 Total Revenues $33,374 $66,553 $25,000 $59,658 $53,287
Expenditures
Transfers Out $32,253 $25,000 $25,000 - -
Supplies and Services $2,232 $3,550 - - -
Total Expenditures $34,485 $28,550 $25,000 - -
Total Revenues Less Expenditures -$1,111 $38,003 - $59,658 $53,287 Ending Fund Balance -$1,111 $36,892 $36,892 $96,550 $149,837

5.16 Water Development Impact Fee Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 104 Subsidized Taxi Fund - 265
The Subsidized Senior Transportation Fund accounts for expenditures related to the Senior Transportation program funded by Local Transportation Funds.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $22,540 $22,942 $23,696 $23,996 $24,996 Revenues
Use of Money and Property $402 $754 $300 $300 -
Total Revenues $402 $754 $300 $300 -
Expenditures
Total Expenditures - - - - -
Total Revenues Less Expenditures $402 $754 $300 $300 -
Ending Fund Balance $22,942 $23,696 $23,996 $24,296 $24,996

5.17 Subsidized Taxi Fund

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CDBG - Non Entitlement Fund - 270
The Community Development Block Grant (CDBG) Non-Entitlement funds may be used for economic development, housing or public service projects which primarily benefit low- and moderate-income residents.

Comprehensive Fund Summary
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised
Budget
FY 2025-
26 Budget
FY 2026-
27 Budget
Beginning Fund Balance $28,212 $28,028 $33,393 $33,393 $33,393 Revenues
Revenue from Other Agencies $239,462 $597,626 - - -
Total Revenues $239,462 $597,626 - - -
Expenditures
Salaries and Benefits $6,714 $11,914 - - -
Supplies and Services $232,932 $580,347 - - -
Total Expenditures $239,646 $592,261 - - -
Total Revenues Less Expenditures -$184 $5,365 - - -
Ending Fund Balance $28,028 $33,393 $33,393 $33,393 $33,393

5.18 CDBG - Non Entitlement Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 106 Home Grant Fund - 275
The Home Investment Partnership Program (HOME) funds can be used for First Time Homebuyer Program, First Time Homebuyer Project, Owner Occupied Rehabilitation Program, Rental Rehabilitation, Rental New Construction Project, and Tenant-Based Rental Assistance Programs.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $122,500 $122,500 $122,500 $122,500 $122,500 Revenues
Total Revenues - - - - -
Expenditures
Total Expenditures - - - - -
Total Revenues Less Expenditures - - - - -
Ending Fund Balance $122,500 $122,500 $122,500 $122,500 $122,500

5.19 Home Grant Fund

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State Mandated ADA Fund - 260
The State Mandated ADA Fund accounts for the State Mandated Disability and Education Fee (SB 1186 Steinberg).

Cities are required to collect four dollars from every business license or equivalent instrument. Cities are required to transmit thirty percent of every dollar to the State. Cities keep 70% of every dollar to be used for ADA Certified Access Specialists Program.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $10,513 $10,028 $9,619 $9,619 $15,619 Revenues
Charges for Services $5,515 $5,591 $6,000 $6,000 -
Total Revenues $5,515 $5,591 $6,000 $6,000 -
Expenditures
Transfers Out $6,000 $6,000 $6,000 - -
Total Expenditures $6,000 $6,000 $6,000 - -
Total Revenues Less Expenditures -$485 -$409 - $6,000 - Ending Fund Balance $10,028 $9,619 $9,619 $15,619 $15,619

5.20 State Mandated ADA Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 108 Trust and Agency - 402
The Trust and Agency Fund is used for charitable donations made to the City.

FY 2025-26 amount accounts for revenues anticipated from community giving campaign for Ramona Park Construction.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance - - - - -
Revenues
Charges for Services - - - $453,114 -
Total Revenues - - - $453,114 -
Expenditures
Transfers Out - - - $453,114 -
Total Expenditures - - - $453,114 -
Total Revenues Less Expenditures - - - - -
Ending Fund Balance - - - - -

5.21 Trust and Agency

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Capital Projects Fund - 301
The Capital Projects Fund is used for all capital improvement projects, except for Fund 201 Street Construction Designated Fund and the Enterprise Fund capital improvement projects that are included in those respective funds. Capital transfers are made to the Capital Projects Fund to finance capital improvement projects.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-24
Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-
27 Budget
Beginning Fund Balance - - - - -
Revenues
Transfers In $915,162 $1,133,737 $1,974,000 $4,179,924 $449,000 Total Revenues $915,162 $1,133,737 $1,974,000 $4,179,924 $449,000 Expenditures
Major Capital $915,162 $1,233,037 $1,974,000 $4,179,924 $280,000 Total Expenditures $915,162 $1,233,037 $1,974,000 $4,179,924 $280,000 Total Revenues Less Expenditures - -$99,300 - - $169,000 Ending Fund Balance - -$99,300 - - $169,000

5.22 Capital Projects Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 110 Underground Utilities Fund - 305
The Underground Utilities Fund accounts for underground utility developer fees restricted to the placement of utility lines underground in accordance with City Council priorities set by resolution.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $228,264 $232,332 $239,965 $243,965 $247,965 Revenues
Use of Money and Property $4,068 $7,633 $4,000 $4,000 - Total Revenues $4,068 $7,633 $4,000 $4,000 -
Expenditures
Total Expenditures - - - - -
Total Revenues Less Expenditures $4,068 $7,633 $4,000 $4,000 - Ending Fund Balance $232,332 $239,965 $243,965 $247,965 $247,965

5.23 Underground Utilities Fund

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Water Fund - 601
The Water Fund consists of the City's water system, including water mains, water supply, storage and water sampling.

The Water Enterprise Fund serves approximately 5,000 customers.

Comprehensive Fund Summary
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $9,251,876 $7,201,098 $6,392,591 $5,474,063 $5,327,907 Revenues
Transfers In $38,426 $25,000 $25,000 $25,000 $25,000
Use of Money and Property $118,037 $133,225 $35,000 $100,000 $100,000 Revenue from Other Agencies -$8,138 - - - -
Charges for Services $3,638,849 $4,191,728 $4,217,560 $4,359,800 $4,359,800 Total Revenues $3,787,174 $4,349,953 $4,277,560 $4,484,800 $4,484,800 Expenditures
Transfers Out $456,531 $492,499 $483,153 $485,000 $490,000 Salaries and Benefits $422,986 $843,609 $1,013,517 $798,862 $806,562 Supplies and Services $2,028,769 $2,579,644 $2,318,125 $2,580,602 $2,549,589 Minor Capital $56,115 $37,403 $40,000 $84,950 $42,400
Major Capital $5,665,183 $874,390 $1,060,000 $400,000 $40,000 Debt Service $95,878 $92,822 $281,293 $281,542 $281,670 Other $209,938 $238,094 - - -
Total Expenditures $8,935,399 $5,158,460 $5,196,088 $4,630,956 $4,210,221 Total Revenues Less Expenditures -$5,148,225 -$808,507 -$918,528 -$146,156 $274,579 Ending Fund Balance $4,103,651 $6,392,591 $5,474,063 $5,327,907 $5,602,486

5.24 Water Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 112 Water Conservation Fund - 602
The Water Conservation Fund provides water conservation rebates to water customers for turf removal, smart irrigation, low flow toilet installations, and energy efficient washing machines.

Comprehensive Fund Summary
Category FY 2022-
23 Actual
FY 2023-
24 Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $369,125 $356,270 $363,132 $352,032 $348,861 Revenues
Transfers In $62 - - - -
Fines and Penalties -$200 - - - -
Use of Money and Property $6,365 $11,633 $3,000 $3,000 - Total Revenues $6,227 $11,633 $3,000 $3,000 -
Expenditures
Salaries and Benefits $7,024 $370 $8,225 $270 $280
Supplies and Services $778 - $875 $901 $928
Major Capital $11,280 $4,401 $5,000 $5,000 $5,000
Total Expenditures $19,081 $4,771 $14,100 $6,171 $6,208 Total Revenues Less Expenditures -$12,855 $6,862 -$11,100 -$3,171 -$6,208 Ending Fund Balance $356,270 $363,132 $352,032 $348,861 $342,653

5.25 Water Conservation Fund

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Wastewater Fund - 603
The Wastewater Fund consists of the City's Wastewater collection system and the South San Luis Obispo County Sanitation District billing. The Wastewater Enterprise Fund serves approximately 5,000 customers. The South San Luis Obispo County Sanitation District (District) sets their fees for the processing of wastewater. The City provides billing services for the District and forwards the collection of fees billed to the district monthly.

The Wastewater Fund Budget does not include revenues and expenditures resulting from the proposed rate increase under consideration at the June 9, 2025 meeting.

Comprehensive Fund Summary
Category FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Revised
Budget
FY 2025-26
Budget
FY 2026-27
Budget
Beginning Fund Balance $3,257,527 $3,266,084 $3,629,797 $3,225,998 $3,242,675 Revenues
Transfers In $104,923 $6,106 - - -
Use of Money and Property $69,470 $123,837 $10,000 $10,000 $10,600 Revenue from Other Agencies - $9 - - -
Charges for Services $1,327,978 $1,799,779 $1,375,671 $1,375,671 $1,458,211 Total Revenues $1,502,372 $1,929,731 $1,385,671 $1,385,671 $1,468,811 Expenditures
Transfers Out $177,170 $240,008 $273,152 - $263,041
Salaries and Benefits $507,144 $769,908 $827,992 $677,489 $814,459 Supplies and Services $541,488 $453,842 $448,325 $447,754 $475,411 Minor Capital - - - $243,750 -
Major Capital $136,650 - $240,000 - -
Other $131,362 $102,260 - - -
Total Expenditures $1,493,815 $1,566,019 $1,789,469 $1,368,993 $1,552,912 Total Revenues Less Expenditures $8,557 $363,713 -$403,799 $16,677 -$84,101 Ending Fund Balance $3,266,084 $3,629,797 $3,225,998 $3,242,675 $3,158,574

5.26 Wastewater Fund
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 114 Capital Improvement Program

6.0 CIP

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Appendix

7.0 Appendix
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 158 Financial Policies
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.

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.

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.

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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

7.1 Budget Policies
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 160 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 cost-recovery percentage and will revise the fees as needed or revise the cost-recovery percentage.

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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.

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. Advances shall not be used to fund operating deficits and should only be considered when exigent circumstances dictate.

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. Loans cannot be made to or from restricted or legally encumbered funds (e.g., bond proceeds, grant-restricted 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 of both payable and receivable sources of funds. Administrative Services shall report outstanding interfund loans in the Annual Comprehensive Financial Report (ACFR).

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City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 162 Gann Appropriation Limit
City of Grover Beach Gann Appropriations Limit as defined in Article XIII-B of the California State Constitution. The voters of California, during a special election in 1979, approved Article XIII-B of the California State Constitution. Informally known as the "Gann Initiative," Article XIII-B provides limits regarding the total amount of appropriation in any fiscal year from the proceeds of taxes.

The State Legislature, in 1980, added Section 9710 to the Government Code, providing that the governing body of each local jurisdiction must establish, by resolution, an appropriations limit for the following year. The appropriation limit for any fiscal year was equal to the previous year's limit, adjusted for population changes and the changes in the US Consumer Price Index (or California per capita personal income, if smaller). The necessary statistical information is provided by the California Department of Finance.

However, the original Article XIII-B (Proposition 4) and its implementing legislation were modified by Proposition 111 and SB 88 by the voters in June 1980. The changes were incorporated in the FY 1990-91 appropriations limits. Beginning with the fiscal year 1990-91 appropriations limit, a city may choose annual adjustment factors. The adjustment factors include the growth in the California per capita income or the growth in the non-residential assessed valuation due to construction within the City and the population growth within the county or the City.

The table below provides the calculation for the appropriations limit for fiscal year 2025-26, as well as the total appropriations subject to the limit. The adjustment factors utilized for the fiscal year 2025-26 calculation include the growth in Assessed Property Valuation for Grover Beach and the population growth in Grover Beach. These two factors yielded the most favorable appropriations limit for the City.

The City's appropriations subject to the limit ($14.7m) are as shown in the calculation below.

A Last Year's Limit 14,054,362 FY 2024-25 Budget
B Adjustment Factors
B1 Population .9965
California Department of
Finance
B2
Change Assessed
Property Value
.0504
San Luis Obispo County
Assessor
C Annual Adjustment 705,837 (B1*B2)*A
D FY 2025-26 Limit 14,760,199 A+C
E Tax Proceeds $15,895,000 FY 2025-26 Budget
F Exclusions 1,210,331 FY 2025-26 Budget
G
2025-26 Appropriations
Subject to Limit
14,704,669 E-F
Amount Under Limit $55,530

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Glossary
Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit.

Accounting System: The total structure of records and procedures that identify record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, account groups, and organizational components.

Accrued Interest: The amount of interest that has accumulated on the debt since the date of the last interest payment, and on the sale of a bond, the amount accrued up to but not including the date of delivery (settlement date). (See Interest) ACFR: Annual Comprehensive Financial Report - A detailed report of an organization's financial activities and performance over the fiscal year.

Amortization: The gradual repayment of an obligation over time and in accordance with a predetermined payment schedule.

Appropriation: A legal authorization from the community's legislative body to expend money and incur obligations for specific public purposes. An appropriation is usually limited in amount and as to the time period within which it may be expended.

Arbitrage: As applied to municipal debt, the investment of tax-exempt bonds or note proceeds in higher yielding, taxable securities.

Section 103 of the Internal Revenue Service (IRS) Code restricts this practice and requires (beyond certain limits) that earnings be rebated (paid) to the IRS.

Assessed Valuation: A value assigned to real estate or other property by a government as the basis for levying taxes.

Assets: Items owned by an organization that have economic value, such as cash, investments, property, and equipment.

Audit: An examination of a community's financial systems, procedures, and data by a certified public accountant (independent auditor), and a report on the fairness of financial statements and on local compliance with statutes and regulations. The audit serves as a valuable management tool in evaluating the fiscal performance of a community.

Audit Report: Prepared by an independent auditor, an audit report includes: (a) a statement of the scope of the audit; (b) explanatory comments as to application of auditing procedures; (c) findings and opinions. It is almost always accompanied by a management letter which contains supplementary comments and recommendations.

Available Funds: Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other one-time costs.

Balance Sheet: A statement that discloses the assets, liabilities, reserves and equities of a fund or governmental unit at a specified date.

Betterments (Special Assessments): Whenever a specific area of a community receives benefit from a public improvement (e.g., water, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental entity for all or part of the costs it incurred.

Each parcel receiving benefit from the improvement is assessed for its proportionate share of the cost of such improvements. The proportionate share may be paid in full or the property owner may request that the assessors apportion the betterment over 20 years.

Over the life of the betterment, one year’s apportionment along with one year’s committed interest computed from October 1 to October 1 is added to the tax bill until the betterment has been paid.

Bond: A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year. (See Note)

7.3 Glossary
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 164 Bond and Interest Record: (Bond Register) – The permanent and complete record maintained by a treasurer for each bond issue. It shows the amount of interest and principal coming due each date and all other pertinent information concerning the bond issue.

Bonds Authorized and Unissued: Balance of a bond authorization not yet sold. Upon completion or abandonment of a project, any remaining balance of authorized and unissued bonds may not be used for other purposes, but must be rescinded by the community's legislative body to be removed from community's books.

Bond Issue: Generally, the sale of a certain number of bonds at one time by a governmental unit.

Bond Rating (Municipal): A credit rating assigned to a municipality to help investors assess the future ability, legal obligation, and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps prospective investors determine the level of risk associated with a given fixed-income investment. Rating agencies, such as Moody's and Standard and Poors, use rating systems, which designate a letter or a combination of letters and numerals where AAA is the highest rating and C1 is a very low rating.

Budget: A plan for allocating resources to support particular services, purposes and functions over a specified period of time. (See Performance Budget, Program Budget)
Capital Assets: All real and tangible property used in the operation of government, which is not easily converted into cash, and has an initial useful live extending beyond a single financial reporting period. Capital assets include land and land improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements; vehicles, machinery and equipment.

Communities typically define capital assets in terms of a minimum useful life and a minimum initial cost. (See Fixed Assets) Capital Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements. Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Assets, Fixed Assets) Cash: Currency, coin, checks, postal and express money orders and bankers’ drafts on hand or on deposit with an official or agent designated as custodian of cash and bank deposits.

Cash Flow: The movement of money into or out of an organization, showing its liquidity and ability to meet financial obligations.

Cash Management: The process of monitoring the ebb and flow of money in an out of municipal accounts to ensure cash availability to pay bills and to facilitate decisions on the need for short- term borrowing and investment of idle cash.

Certificate of Deposit (CD): A bank deposit evidenced by a negotiable or non-negotiable instrument, which provides on its face that the amount of such deposit plus a specified interest payable to a bearer or to any specified person on a certain specified date, at the expiration of a certain specified time, or upon notice in writing.

Classification of Real Property: Assessors are required to classify all real property according to use into one of four classes: residential, open space, commercial, and industrial. Having classified its real properties, local officials are permitted to determine locally, within limitations established by statute and the Commissioner of Revenue, what percentage of the tax burden is to be borne by each class of real property and by personal property owners.

Collective Bargaining: The process of negotiating workers' wages, hours, benefits, working conditions, etc., between an employer and some or all of its employees, who are represented by a recognized labor union, regarding wages, hours and working conditions.

Compliance: Adherence to relevant laws, regulations, and internal policies governing financial reporting and operations.

Consumer Price Index: The statistical measure of changes, if any, in the overall price level of consumer goods and services. The index is often called the "cost-of-living index."
Cost-Benefit Analysis: A decision-making tool that allows a comparison of options based on the level of benefit derived and the cost to achieve the benefit from different alternatives.

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Debt Burden: The amount of debt carried by an issuer usually expressed as a measure of value (i.e., debt as a percentage of assessed value, debt per capita, etc.). Sometimes debt burden refers to debt service costs as a percentage of the total annual budget.

Debt Service: The repayment cost, usually stated in annual terms and based on an amortization schedule, of the principal and interest on any particular bond issue.

Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that are chargeable to, but not yet paid from, a specific appropriation account.

Enterprise Funds: An enterprise fund is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery — direct, indirect, and capital costs — are identified. This allows the community to recover total service costs through user fees if it chooses. Enterprise accounting also enables communities to reserve the "surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport services.

Equalized Valuations (EQVs): The determination of the full and fair cash value of all property in the community that is subject to local taxation.

Equity: The residual interest in the assets of an organization after deducting liabilities, representing the owners' stake in the business.

Estimated Receipts: A term that typically refers to anticipated local revenues often based on the previous year's receipts and represent funding sources necessary to support a community's annual budget. (See Local Receipts) Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is available to particular categories of property or persons upon the timely submission and approval of an application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors.

Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved budget.

Fiduciary Funds: Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benefit) trust funds, investment trust funds, private- purpose trust funds, and agency funds.

Financial Statements: Reports summarizing an organization's financial activities and position, including the balance sheet, income statement, and cash flow statement.

Fiscal Year: The 12-month period for which an organization plans the use of its funds, typically not the same as the calendar year.

Fixed Assets: Long-lived, assets such as buildings, equipment and land obtained or controlled as a result of past transactions or circumstances.

Fixed Costs: Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service costs or interest on loans.

Float: The difference between the bank balance for a local government’s account and its book balance at the end of the day. The primary factor creating float is clearing time on checks and deposits. Delays in receiving deposit and withdrawal information also influence float.

Full Faith and Credit: A pledge of the general taxing powers for the payment of governmental obligations. Bonds carrying such pledges are usually referred to as general obligation or full faith and credit bonds.

7.3 Glossary
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 166 Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on identified activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations.

Fund Accounting: Organizing financial records into multiple, segregated locations for money. A fund is a distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently in accordance with specific regulations, restrictions or limitations. Examples of funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the Uniform Municipal Accounting System (UMAS) use multiple funds.

GAAP: Generally Accepted Accounting Principles - Standard accounting principles, standards, and procedures that companies use to compile their financial statements.

GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the form and content of governmental financial statements. GASB 34 requires a report on overall financial health, not just on individual funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as bridges, road, sewers, etc. It also requires the presentation of a narrative statement the government's financial performance, trends and prospects for the future.

GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public entity account for and report other postemployment benefits in its accounting statements. Through actuarial analysis, municipalities must identify the true costs of the OPEB earned by employees over their estimated years of actual service.

General Fund: The fund used to account for most financial resources and activities governed by the normal appropriation process.

General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and credit of its taxing authority.

Governing Body: A board, committee, commission, or other executive or policymaking body of a municipality or school district.

Indirect Cost: Costs of a service not reflected in the operating budget of the entity providing the service. An example of an indirect cost of providing water service would be the value of time spent by non-water department employees processing water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs arises most often in the context of enterprise funds.

Internal Controls: Policies and procedures implemented by an organization to ensure the reliability of financial reporting and compliance with laws and regulations, aiming to prevent fraud and errors.

Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every six months.

Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a specified period of time. It is always expressed in annual terms.

Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease payments. The term does not include fixed assets used in governmental operations.

Liabilities: Debts or obligations owed by an organization, including loans, accounts payable, and accrued expenses.

Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment, maintenance, or salaries, as opposed to a program budget.

Local Aid: Revenue allocated by the state or counties to municipalities and school districts.

Maturity Date: The date that the principal of a bond becomes due and payable in full.

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Municipal(s): (As used in the bond trade) "Municipal" refers to any state or subordinate governmental unit. "Municipals" (i.e., municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts, counties but also bonds of the state and agencies of the state.

Net Income: The difference between an organization's revenues and expenses, representing its profit or loss for a specific period.

Note: A short-term loan, typically with a maturity date of a year or less.

Objects of Expenditures: A classification of expenditures that is used for coding any department disbursement, such as “personal services,” “expenses,” or “capital outlay.”
Official Statement: A document prepared for potential investors that contains information about a prospective bond or note issue and the issuer. The official statement is typically published with the notice of sale. It is sometimes called an offering circular or prospectus.

Operating Budget: A plan of proposed expenditures for personnel, supplies, and other expenses for the coming fiscal year.

Overlapping Debt: A community's proportionate share of the debt incurred by an overlapping government entity, such as a regional school district, regional transit authority, etc.

Performance Budget: A budget that stresses output both in terms of economy and efficiency.

Principal: The face amount of a bond, exclusive of accrued interest.

Program: A combination of activities to accomplish an end.

Program Budget: A budget that relates expenditures to the programs they fund. The emphasis of a program budget is on output.

Proprietary Funds: Funds used to record the financial transactions of governmental entities when they engage in activities that are intended to recover the cost of providing goods or services to the general public on a user-fee basis.

Purchased Services: The cost of services that are provided by a vendor.

Refunding of Debt: Transaction where one bond issue is redeemed and replaced by a new bond issue under conditions generally more favorable to the issuer.

Reserve Fund: An amount set aside annually within the budget of a town to provide a funding source for extraordinary or unforeseen expenditures.

Revaluation: The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with constitutional and statutory requirements. The nature and extent of that program will depend on the assessors’ analysis and consideration of many factors, including, but not limited to, the status of the existing valuation system, the results of an in-depth sales ratio study, and the accuracy of existing property record information.

Revenues: Inflows of resources or other enhancements of assets of an organization, usually from sales of goods or services.

Revenue Anticipation Note (RAN): A short-term loan issued to be paid off by revenues, such as tax collections and state aid. RANs are full faith and credit obligations.

Revenue Bond: A bond payable from and secured solely by specific revenues and thereby not a full faith and credit obligation.

Revolving Fund: Allows a community to raise revenues from a specific service and use those revenues without appropriation to support the service.

7.3 Glossary
City of Grover Beach Biennial Budget | 2025-26 & 2026-27 Page 168 Sale of Real Estate Fund: A fund established to account for the proceeds of the sale of municipal real estate other than proceeds acquired through tax title foreclosure.

Stabilization Fund: A fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose.

Surplus Revenue: The amount by which cash, accounts receivable, and other assets exceed liabilities and reserves.

Tax Rate: The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property.

Tax Title Foreclosure: The procedure initiated by a municipality to obtain legal title to real property already in tax title and on which property taxes are overdue.

Trust Fund: In general, a fund for money donated or transferred to a municipality with specific instructions on its use. As custodian of trust funds, the treasurer invests and expends such funds as stipulated by trust agreements, as directed by the commissioners of trust funds or by the community's legislative body. Both principal and interest may be used if the trust is established as an expendable trust. For nonexpendable trust funds, only interest (not principal) may be expended as directed.

Uncollected Funds: Recently deposited checks included in an account’s balance but drawn on other banks and not yet credited by the Federal Reserve Bank or local clearinghouse to the bank cashing the checks. (These funds may not be loaned or used as part of the bank’s reserves and they are not available for disbursement.) Undesignated Fund Balance: Monies in the various government funds as of the end of the fiscal year that are neither encumbered nor reserved, and are therefore available for expenditure once certified as part of free cash.

Unreserved Fund Balance (Surplus Revenue Account): The amount by which cash, accounts receivable, and other assets exceed liabilities and restricted reserves. It is akin to a "stockholders’ equity" account on a corporate balance sheet. It is not, however, available for appropriation in full because a portion of the assets listed as "accounts receivable" may be taxes receivable and uncollected. (See Free Cash)
Valuation (100 Percent): The legal requirement that a community’s assessed value on property must reflect its market, or full and fair cash value.

7.3 Glossary

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Grover Beach City CouncilJune 9, 2025

Grover Beach City Council
June 9, 2025