Grover Beach City Council
February 23, 2026

CITY OF GROVER BEACH

CITY COUNCIL STAFF REPORT
Agenda Item No. 6
Placement: Consent
Meeting Date: February 23, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: FY 2024-25 Annual Comprehensive Financial Report

RECOMMENDATION
Receive and file the FY 2024-25 Annual Comprehensive Financial Report

BACKGROUND
The Annual Comprehensive Financial Report (ACFR) is a set of financial statements comprising all financial activity of the City that has been reviewed by an independent auditor contracted by the Council using accepted standards and report formats to ensure the accuracy of the City’s financial practices and overall financial condition.

The goal of the independent audit is to provide reasonable assurance that the financial statements of the City are free of material misstatements, whether due to fraud or error. The independent audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation.

The Independent Auditors’ Report presented on page eight of the ACFR, shown in Attachment 1, issued a clean and unmodified opinion, meaning the financial statements and other information reported in the ACFR present fairly in all material respects the financial position of the City as of June 30, 2025.

Key financial highlights for FY 2024-25 identified in the audit include:
• The Council adopted a five-year Capital Improvement Program in June 2025 that identifies eight projects for FY 2025-26 with a budget of nearly $12 million across all City funds. • The Council also adopted a five-year wastewater rate schedule in June 2025 and began financing $4.8 million in bond financing to replace city sewers.

The City is in the 10th year of the multi-year Local Street Rehabilitation program funded by Measure K-14, which was approved by voters in 2014 and provides for up to $48 million in bond funds for repair of residential streets over a 25-year period. To date, $38 million in bonds Staff Report: FY 2024-25 Annual Comprehensive Financial Report Page 2 February 23, 2026
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☒ Financial and Organization Sustainability Council Priorities
☒ Water & Wastewater Infrastructure ☐ Community Engagement • have been issued for these projects resulting in the improvement of 70% of the City’s residential streets.
• General Fund revenues totaled $21.2 million in FY 2024-25. This figure was higher than in prior years, in part due to grant funding for the West Grand Avenue Streetscape Project. The City’s General Fund revenue exceeded expenditures by $2.4 million in FY 2024-25. However, carryover General Fund contributions for the West Grand Avenue Streetscape Project, netted a reduction in fund balance by $1.8 million as was planned and approved by Council over the life of the project.
• At year-end FY 2024-25, the City’s General Fund maintained strong reserve levels of 31% of operating expenses higher than the City’s policy of at least 25%.

Overall, the audit affirmed that the City ended FY 2024-25 in a positive financial position with an unassigned General Fund balance of $7 million. However, unassigned General Fund balance does not include carry-over amounts for unspent capital projects, which would reduce the available reserves to approximately $5.3 million.

A representative from the City’s independent auditor (Glenn Burdette) will be available during the meeting to answer any questions from Council regarding the FY 2024-25 ACFR.

FISCAL IMPACT
There are no funding impacts to this staff report.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Receive and file the FY 2024-25 Annual Comprehensive Financial Report; or

2. Provide alternate direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

ATTACHMENTS

1. FY 2024-25 Annual Comprehensive Financial Report
Fiscal Year 2024-25 Annual
Comprehensive Financial Report
(ACFR)

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CITY OF GROVER BEACH,

CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2025
Prepared by
Department of Administrative Services
Presented by
Nick Szamet, Director of Administrative Services
Luz Santos, Accounting Technician III
i

CITY OF GROVER BEACH
Annual Comprehensive Financial Report
Table of Contents

INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................................................. 2 Organization of City Government .......................................................................................................................... 6 Directory of City Officials........................................................................................................................................ 7 Government Finance Officers Association Certificate of Achievement ..…………………………………………………………..8

FINANCIAL SECTION
Independent Auditors’ Report.............................................................................................................................11 Management’s Discussion and Analysis............................................................................................................... 15 Basic Financial Statements
Government-Wide Financial Statements:

Statement of Net Position....................................................................................................................... 29 Statement of Activities ...........................................................................................................................31 Fund Financial Statements:

Governmental Funds:

Balance Sheet .....................................................................................................................................33 Reconciliation of the Balance Sheet to the Statement of Net Position.............................................. 34 Statement of Revenues, Expenditures, and Changes in Fund Balance .............................................. 35 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities................................................................................ 36 Proprietary Funds:

Statement of Net Position .................................................................................................................. 37 Statement of Revenues, Expenses, and Changes in Net Position ...................................................... 38 Statement of Cash Flows.................................................................................................................... 39 Fiduciary Funds:

Statement of Fiduciary Net Position...................................................................................................41 Statement of Changes in Fiduciary Net Position ................................................................................42 Notes to the Basic Financial Statements.......................................................................................................43 Required Supplemental Information Section
Budgetary Basis of Accounting - Note to the Required Supplemental Information............................................82 Budgetary Comparison Schedule – General Fund................................................................................................83 Budgetary Comparison Schedule – Street Rehabilitation and Repair Fund.........................................................84 Budgetary Comparison Schedule – Capital Projects Fund ................................................................................... 85 ii

CITY OF GROVER BEACH
Annual Comprehensive Financial Report
Table of Contents
Schedule of Proportionate Share of Net Pension Liability ......................................................................................... 86 Schedule of Pension Contributions......................................................................................................................90 Supplemental Information Section
Nonmajor Governmental Funds Description .......................................................................................................94 Combining Balance Sheet Nonmajor Governmental Funds.......................................................................... 96 Combining Statement of Revenues, Expenditures, and Change in Fund Balances – Nonmajor Governmental Funds.......................................................................................................100 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual – Nonmajor Governmental Funds:

Gas Tax Fund .........................................................................................................................................104 Gas Tax RMRA Fund ..............................................................................................................................105 Public Safety Grants Fund .....................................................................................................................106 Byrne Discretionary Grant Fund............................................................................................................107 Park Construction Fund.........................................................................................................................108 Transportation Impact Fees Fund .........................................................................................................109 Law Enforcement Impact Fees Fund..................................................................................................... 110 Administrative Impact Fees Fund …………………………………………………………………………………………………….111 Fire Impact Fees Fund ........................................................................................................................... 112 Storm Water Impact Fees Fund ............................................................................................................ 113 Wastewater Impact Fees Fund.............................................................................................................. 114 Parks Facilities Impact Fees Fund.......................................................................................................... 115 Recreation Facilities Impact Fees Fund................................................................................................. 116 Water Impact Fees Fund ....................................................................................................................... 117 State Mandated ADA Fund.................................................................................................................... 118 Subsidized Senior Transportation Fund ................................................................................................ 119 Local Transportation Fund .................................................................................................................... 120 CDBG Non-Entitlement Fund……………………………………………………………………………………………………………121 Home Grant Fund.................................................................................................................................. 122 Underground Utilities Fund……………………………………………………………………………………………………………..123 Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds........................................124 Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds...................... 125 Combining Statement of Fiduciary Net Position – Custodial Funds............................................................126 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds..........................................127 iii

CITY OF GROVER BEACH
Annual Comprehensive Financial Report
Table of Contents
Schedule of Debt Service Coverage………………………………………………………………………………………………………………128 STATISTICAL SECTION (Unaudited)
Explanation of Statistical Section ....................................................................................................................... 130 Financial Trends Information:

Net Position by Component......................................................................................................................... 131 Changes in Net Position............................................................................................................................... 133 Fund Balances of Governmental Funds....................................................................................................... 135 Changes in Fund Balances of Governmental Funds..................................................................................... 137 Revenue Capacity Information:

Tax Revenue by Source – General Fund ...................................................................................................... 139 Net Taxable Assessed Value History............................................................................................................ 140 Assessed Value of Taxable Property............................................................................................................ 141 Direct and Overlapping Property Tax Rates ................................................................................................ 143 Principal Property Taxpayers....................................................................................................................... 145 Property Tax Levies and Collections............................................................................................................ 147 Direct and Overlapping Sales Tax Rates ...................................................................................................... 148 Taxable Sales By Category ........................................................................................................................... 149 Debt Capacity Information:

Ratios of Outstanding Debt by Type............................................................................................................ 151 Ratios of General Bonded Debt Outstanding .............................................................................................. 152 Direct and Overlapping Governmental Activities Debt ............................................................................... 153 Legal Debt Margin........................................................................................................................................ 154 Demographic and Economic Information:

Demographics and Economic Statistics....................................................................................................... 155 Full-Time Equivalent Government Employees by Function ........................................................................ 156 Operating Indicators by Function/Program................................................................................................. 158 Capital Asset Statistics by Function/Program.............................................................................................. 160 iv

INTRODUCTORY

SECTION
• Letter of Transmittal
• Organization of City Government
• Directory of City Officials
• Government Finance Officers
Association Certificate of Achievement
for Excellence in Financial Reporting
City of Grover Beach
Mayor Kassi Dee Mayor Pro Tem Robert Robert
Council Member Kathy McCorry-Driscoll, Council Member Jules Tuggle, Council Member Clint Weirick Matthew Bronson
City Manager
154 South Eighth Street Grover Beach, California 93433 www.groverbeach.org (805) 473-4550 February 17, 2026
To the Honorable Mayor, Members of the City Council and Grover Beach Community, We are pleased to present the City of Grover Beach’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025. The City follows a policy of preparing a complete set of financial statements in conformity with accounting principles generally accepted in the United States of America after the end of each fiscal year. These financial statements are audited by a licensed certified public accounting firm.

This report consists of management’s representations concerning the finances of the City of Grover Beach. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Grover Beach has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to communicate sufficient reliable information for the City of Grover Beach’s financial statements to be in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the City of Grover Beach’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of Grover Beach’s financial statements have been audited by Glenn Burdette, a licensed certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Grover Beach for the fiscal year ended June 30, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditing firm concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Grover Beach’s financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditors’ report is presented as the first component of the financial section of this report.

This report contains financial information and data using the new financial reporting format established for governments by the Governmental Accounting Standards Board (GASB). The GASB sets accounting and financial reporting standards for governments in the United States of America. The financial reporting standards require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Grover Beach’s MD&A can be found immediately following the report of the independent auditors.

Docusign Envelope ID: 41A2C975-DD63-4B59-A925-3E85DF433444 2 154 South Eighth Street Grover Beach, California 93433 www.groverbeach.org (805) 473-4550 Profile of the City and Operations
The City of Grover Beach was incorporated in 1959 and is located on the Central Coast of California about midway between San Francisco and Los Angeles. The City is located in San Luis Obispo County, which is visited annually by a substantial number of tourists seeking to enjoy the area’s moderate climate, beautiful ocean views and sunsets, fine restaurants, and the relaxing atmosphere unique to coastal communities. The city has a population of approximately 12,500 and about 55 percent of the city’s properties are residential.

The City operates under a council-manager form of government. Policy making and legislative authority are vested in the City Council consisting of the Mayor elected at-large and four Council Members elected by district. The Council is responsible, among other matters, for passing ordinances, adopting the City budget, appointing committees, and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for appointing other employees, and otherwise managing daily operations of the City.

The City provides a full range of municipal services including police protection, construction and maintenance of City streets, sanitary services, water system, storm drains, bridges and other infrastructure assets, and park maintenance, and community recreation activities. In terms of business type activities, the City provides water, wastewater, and storm water collection services through operation of its utility enterprises. Fire protection is provided through the Five Cities Fire Authority, Joint Powers Agency with the City of Arroyo Grande.

The City’s biennial budget serves as the foundation for the City of Grover Beach’s financial planning and control system. All departments of the City submit requests for appropriations to the City Manager each fiscal year. The City Manager uses these requests as a starting point for developing a proposed budget which is presented to the City Council every two fiscal years. The Council holds a public hearing on the proposed budget and then ultimately adopts a formal budget. The budget is adopted by fund, function, department, and object. The Council periodically reviews during the fiscal year the City’s actual financial activity in relationship to the original budget, and as necessary amends the original budget to reflect changing conditions.

Budget to actual comparisons are provided in this report for each governmental fund for which an appropriated biennial budget has been adopted. The General Fund’s comparison is presented as required supplementary information in a separate section of this report immediately following the notes to basic financial statements. For the City’s other governmental-type funds, budget to actual comparison schedules are presented as optional information in the section of this report containing combining financial statements and individual fund schedules.

Factors Affecting Financial Condition
The information presented in the basic financial statements should be considered in relationship to the City’s economic environment and the City’s financial position.

Grover Beach Economy
The City of Grover Beach covers 2.31 square miles and is located along the beautiful Central Coast of California, 92 miles north of Santa Barbara and 150 miles south of Monterey. Grover Beach shares borders with Pismo Beach and Arroyo Grande and is just 20 minutes south of San Luis Obispo, home of Cal Poly State University. Grover Beach provides for a unique quality of life Docusign Envelope ID: 41A2C975-DD63-4B59-A925-3E85DF433444 3 154 South Eighth Street Grover Beach, California 93433 www.groverbeach.org (805) 473-4550 for over 12,000 residents and draws tourists with its moderate coastal climate and diverse recreational opportunities. Activities include weekly summer concert series, hiking, bike riding, jogging along the white sandy beaches, dunes and sea cliffs, kayaking, fishing, clamming, surfing, golfing, horseback riding, wine tasting, and off-road vehicle riding. The City provides entrance to California’s only drivable stretch of beach.

Grover Beach is a community-oriented beach town offering a range of housing options with a median home price of $704,000. About 50% of the City’s total revenues, applicable to its governmental-type activities, are derived from tax revenues; approximately 18% is from sales tax revenues and 25% is from local property taxes. Other top revenue generators are transient occupancy tax and cannabis tax.

The City had a capital outlay of $7.8 million in FY 2024-25 mostly for completing the West Grand Avenue Project which included nearly $1.7 million in General Fund money. Additional projects are planned for completion in FY 2025-26. The City will continue its practice of seeking out Federal, State, and Local grants and allocations to provide financing for the City’s capital projects. These projects in fiscal year 2025-26 include the Ramona Garden Park improvement project and sewer infrastructure project.

Cash Resources and Practices
During the fiscal year, almost all the idle cash was invested by the City in the State of California Local Agency Investment Fund (a pooled investment arrangement among California governments). As of June 30, 2025, the City had $14.1 million invested across all funds. The City ended the fiscal year with approximately $23.4 million in cash and investments, which includes the proceeds from the Measure K-14 bond sales. This amount is more than sufficient to enable the City to move forward into the new fiscal year and conduct operations.

Risk Management
The City limits its exposure to losses from unfavorable events, employee injuries, and from the risk of damage to City property by participating with other governments in an insurance pool.

Under the arrangement, the risk of loss is not transferred to the pool for the first $50,000 of each workers’ compensation claim and the first $30,000 of each liability claim. Losses above those amounts are covered by insurance provided by the insurance pool and its purchased excess insurance coverage.

Long-Term Debt Administration
The City’s enterprises issued water revenue bonds in 2020 in the amount of approximately $4.4 million, with debt service payments due each March and September, beginning in September 2020 and funded by utility rates. Debt currently is held by the Successor Agency in the amount of $2.9 million. Debt service payments are due each February and August, and all payments have been made in a timely manner. In FY 2021-22 $10 million in General Obligation Street Repair bonds were issued bringing total debt issuance to $38 million. Additionally, the City has $4.2 million in debt obligations related to the 2020 Water Revenue Bonds. The City can expect additional debt issuances for both the General Obligation Street bonds and business enterprise funds in future fiscal years.

Docusign Envelope ID: 41A2C975-DD63-4B59-A925-3E85DF433444 4 154 South Eighth Street Grover Beach, California 93433 www.groverbeach.org (805) 473-4550 Pension Benefits
The City directly participates in the Public Employees’ Retirement System (PERS) of the State of California for all employees. The City funds each fiscal year’s required contribution to the miscellaneous and public safety plans as determined by PERS based upon actuarial information.

Additional information about the plan is included in the notes to the basic financial statements.

Challenges for Fiscal Year 2025-26
In fiscal year 2025-26, there are continued near term fiscal uncertainties for the City to monitor.

Inflation has slowed but remains persistent and some local uncertainties still remain in the cannabis industry. Additional challenges include deferred maintenance needs in the City’s infrastructure, including water system infrastructure, and City buildings and facilities.

Award For Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to City of Grover Beach for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2024. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.

Acknowledgements
The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Administrative Services Department and City Manager’s Office.

We would like to express our appreciation to all members of the departments who assisted and contributed to the preparation of this report. Lastly, recognize the City Council for their continued support for maintaining the highest standards of professionalism in the management of the City of Grover Beach’s financial affairs.

Respectfully submitted,
Nick Szamet
Administrative Services Director
Matthew Bronson
City Manager
Docusign Envelope ID: 41A2C975-DD63-4B59-A925-3E85DF433444 5 ORGANIZATIONAL STRUCTURE
Community of Grover Beach
City Council
City Manager
City
Management
Administrative
Services
Police Community
Development
Public Works
6 DIRECTORY OF CITY OFFICIALS

ELECTED OFFICIALS
Mayor................................................................................................................................. Kassi Dee Council Member District 1 (Mayor Pro Tem)............................................................. Robert Robert Council Member District 2 .............................................................................................Jules Tuggle Council Member District 3 ........................................................................... Kathy McCorry-Driscoll Council Member District 4 ............................................................................................Clint Weirick

EXECUTIVE MANAGEMENT
City Manager........................................................................................................Matthew Bronson Assistant City Manager .............................................................................................Kristin Eriksson Administrative Services Director...........................................................................................Nick Szamet Community Development Director ........................................................................... Megan Martin Police Chief.................................................................................................................................Jim Munro Public Works Director.............................................................................................................Gregory Ray City Clerk ........................................................................................................................ Wendi Sims 7 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Grover Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
8 FINANCIAL

SECTION
• Independent Auditor’s Report
• Management’s Discussion and Analysis
• Basic Financial Statements
• Required Supplemental Information
• Supplemental Information
Independent Auditors’ Report
Honorable Mayor and City Council
City of Grover Beach
Grover Beach, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financialstatements ofthe governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grover Beach, California,(theCity), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinions, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Unites States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 11 12
Honorable Mayor and City Council
City of Grover Beach

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor's Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing opinions on the effectiveness of the City’s internal control. Accordingly, no such opinions are expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. 13 Honorable Mayor and City Council
City of Grover Beach

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary comparison schedules – General and Major Special Revenue Fund, the Schedule of Proportionate Share of the Net Pension Liability, and Schedule of Pension Plan Contributions, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a basic part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express opinions or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express opinions or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and Schedule of Debt Service Coverage, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting andother records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinions, the combining and individual nonmajor fund financial statements and Schedule of Debt Service Coverageare fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express opinions or any form of assurance thereon. 14 Honorable Mayor and City Council
City of Grover Beach

In connection with out audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 17, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of intenral control over financial reporting and compliance and the results of that testing, and not to provide opinions on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governemnt Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Glenn Burdette Attest Corporation
San Luis Obispo, California
February 17, 2026

CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
The management’s discussion and analysis of the City of Grover Beach presents a narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2025. City management encourages readers to consider the information presented here in conjunction with the accompanying transmittal letter located in the introductory section and the City's financial statements, which follow this section.

FINANCIAL HIGHLIGHTS
Key financial highlights for the fiscal year ended June 30, 2025, are as follows:
• The Council approved a five-year Capital Improvements Program (CIP) in June 2025 that identifies 11 projects for the next fiscal year 2026 with a budget of $11.9 million. The largest funded category is sewer followed by streets and storm drains. • The City is in the ninth year of the multi-year Local Street Rehabilitation project funded by Measure K-14 which provides up to $48 million in bond funds for repair of residential streets over the next 25 years. The City has completed fifteen street projects with Measure K-14 funds.

As of June 30, 2025, total expenditures for street projects are $35.5 million, with approximately $600,000 of the total expenditures in FY 2024-25.
• General Fund revenues decreased by 11% or $2.5 million when compared to the previous fiscal year. The reduction is largely due to pass through of intergovernmental funds to pay for capital projects. Although cannabis tax and sales tax revenue reported a slight increases 2.5% over the prior year respectively.
• The City’s General Fund revenue and other financing sources (uses) exceeded expenditures by $2.4 million in fiscal year 2024-25. However, the overall cash position of the General Fund has decreased by roughly $5.78 million year over year largely due to the completion of West Grand Avenue project which required a transfer to cover costs to the Capital Projects Fund.

OVERVIEW OF THE FINANCIAL STATEMENTS
The financial statements presented herein include all the activities of the City of Grover Beach using the integrated approach as prescribed by GASB Statement No. 34. This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise of three components: (1) government-wide financial statements; (2) fund financial statements; and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. • The government-wide financial statements provide both long-term and short-term information about the City’s overall financial status.
• The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements. 15 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
- The governmental funds statements tell how government services, such as general government, public safety, community development, parks and recreation and public works were financed in the short-term as well as what remains for future spending.
- Proprietary fund statements offer short and long-term financial information about the activities the government operates like businesses, such as the City’s water and wastewater systems.

The basic financial statements also include notes that provide additional information essential to understanding the data contained in the government-wide and fund financial statements.

Figure A-1 on the next page summarizes the major features of the City's financial statements, including the portion of the City government they cover and the types of information they contain.

The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements.
16 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025
Figure A-1
Major Features of City of Grover Beach’s Government-Wide and Fund Financial Statements
Fund Statements
Government-wide
Statements
Governmental Funds Proprietary Funds
Scope Entire City
government
The activities of the
City that are not
proprietary or
fiduciary, such as
police, fire, and parks
Activities the City
operates similar to
private businesses: the
water and wastewater
systems
Required financial
statements
• Statement of net
position
• Balance sheet • Statement of net
position
• Statement of
activities
• Statement of
revenues,
expenditures, and
changes in fund
balances
• Statement of
revenues expenses,
and changes in net
position
• Statement of cash
flows
Accounting basis
and measurement
focus
Accrual accounting
and economic
resources focus
Modified accrual
accounting and
current financial
resources focus
Accrual accounting and
economic resources
focus
Type of
asset/liability
information
All assets and
liabilities, both
financial and capital,
and short-term and
long-term
Only assets expected
to be used up and
liabilities that come
due during the year or
soon thereafter; no
capital assets included
All assets and liabilities,
both financial and
capital, and short-term
and long-term
Type of
inflow/outflow
information
All revenues and
expenses during year,
regardless of when
cash is received or
paid
Revenues for which
cash is received during
or soon after the end
of the year; expenses
when goods or
services have been
received and payment
is due during the year,
or soon thereafter.

All revenues and
expenses during year,
regardless of when cash
is received or paid
17 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

Government-Wide Financial Statements
The Government-Wide Financial Statements report information about the City as a whole using accounting methods similar to those used by private-sector companies or the accrual basis of accounting. These statements include all assets of the City (including infrastructure) as well as all liabilities (including long-term debt).

The Statement of Net Position presents information on all the City’s assets and liabilities, as well as any deferred outflows or inflows, with the difference between them reported as net position.

Over time, increases or decreases in net position may serve as a useful indicator of whether the overall financial position of the City is improving or deteriorating.

The Statement of Activities includes all the City’s fiscal year’s revenue and expenditures regardless of when cash is received or paid. These government-wide statements report the City’s net position and how the City’s net position has changed during the fiscal year.

Both government-wide statements distinguish the City’s functions that are principally supported by taxes and charges for services (governmental activities) that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include general government, public safety, community development, public works and parks and recreation. The business-type activities of the City include water, water conservation and wastewater.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements include statements for the three categories of activities – governmental, proprietary, and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. The business-type (proprietary) activities are prepared using the economic resources measurement focus and the accrual basis of accounting.

The fiduciary activities include agency funds, which only report a balance sheet and do not have a measurement focus, and trust funds which include activities of the dissolved Redevelopment Agency.

The fund financial statements provide more detailed information about the City's most significant funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants, however management may establish other funds to help control and manage money for purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money.

The City has three types of fund financial statements:
• Governmental funds – Most of the City's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at fiscal yearend that are available for spending. These funds are reported using an accounting method called 18 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental funds statements provide a detailed short-term view of the City’s general government operations, such as police, public works, community development, and parks and recreation, and the basic services it provides. Governmental funds information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, reconciliations that explain the relationship (or differences) between governmental funds and the governmental activities follow the governmental funds statements. • Proprietary funds – Services for which the City charges customers a fee are generally reported in proprietary funds. Proprietary fund statements, like the government-wide statements, provide both long and short-term financial information about the activities the City operates like businesses, such as utility services.
• Fiduciary funds – The City’s fiduciary activities are reported in a separate statement of fiduciary net position and statement of changes in fiduciary net position. These activities are excluded from the City’s other financial statements since the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Notes to the Basic Financial Statements
The notes provide additional detailed information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Required Supplementary Information
The notes to the basic financial statements are followed by a section of required supplementary information (RSI) that further explains and supports the information in the financial statements.

Other Supplementary Information
In addition to the basic financial statements, accompanying notes and required supplementary information, this report also presents certain other supplementary information including combining fund statements for the City’s non-major special revenue, capital projects and debt service funds, individual budget and actual statements for non-major and major funds and combining statement of net position for fiduciary funds. 19 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Position
The net position of the City increased from $9.3 million to $15 million at June 30, 2025.

The following analysis of governmental and business-type activities provides more detailed information for these changes.

Governmental Activities
• Current and other assets and deferred outflows of resources, in total, decreased by $2,011,987. Deferred outflows of resources represent the unamortized portion of changes to the net pension liability, which decreased by $1.4 million from the prior fiscal year.
• Current and other liabilities increased by $1.7 million from the prior fiscal year. • Restricted net position, representing amounts that must be used in accordance with external restrictions decreased $312,403. The remaining balance of unrestricted net position may be used to meet the City’s ongoing obligations to citizens and creditors.

Net position may serve over time as a useful indicator of a government’s financial position. For FY 2024-25, assets and deferred outflows exceded liabilities and deferred inflows by $674,733. It should be noted that the Street Rehabilitation and Repair Fund includes bonds, although the street repairs and maintenance that are paid from the bond proceeds do not get capitalized; they 2024 2025 2024 2025 2024 2025
ASSETS
Current and other assets $ 21,240,513 $ 20,588,185 $ 10,740,933 $ 10,096,716 $ 31,981,446 $ 30,684,901 Net Capital assets 24,174,002 31,301,108 8,825,774 10,025,498 32,999,776 $ 41,326,606 Total assets 45,414,515 51,889,293 19,566,707 20,122,214 64,981,222 72,011,507

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resource 5,949,148 4,589,489 941,692 633,967 6,890,840 5,223,456 Total deferred outflows of resources 5,949,148 4,589,489 941,692 633,967 6,890,840 5,223,456

LIABILITIES
Current and other liabilities 1,937,654 3,679,645 463,814 439,425 2,401,468 4,119,070 Long-term liabilities outstanding 53,135,370 51,843,639 6,275,237 5,927,997 59,410,607 57,771,636 Total liabilities 55,073,024 55,523,284 6,739,051 6,367,422 61,812,075 61,890,706

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows 649,662 280,764 85,294 48,626 734,956 329,390 Total deferred inflows of resources 649,662 280,764 85,294 48,626 734,956 329,390

NET POSITION
Net investment in capital assets (9,990,567) * (2,030,157) * 6,024,334 6,435,916 (3,966,233) 4,405,759 Restricted 7,147,637 6,835,234 7,147,637 6,835,234
Unrestricted (1,516,093) (4,130,344) 7,659,720 7,904,217 6,143,627 3,773,873 $ (4,359,023) $ 674,733 $ 13,684,054 $ 14,340,133 $ 9,325,031 $ 15,014,866 * Net investment in capital assets for governmental activities excludes the unspent bond proceeds in the Street Rehab and Repair Fund.

The bond proceeds are used for the repairs and maintenance of city streets. These repairs are expensed in the year incurred and are not capitalized, which creates a negative balance in the net investment in capital assets because they are not included as a capital asset.

Certain reclassifications have been made to the prior year classification to conform to the current year presentation.

Total net position
Governmental Activities Business-type Activities Total
20 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

are expensed in the year the cost is incurred. This creates a negative balance in the net investments in capital assets.

Business-Type Activities
• Total assets and deferred outflows of resources increased by $247,782 due to the liquidation of City’s interest in assets held in the Central Coast Blue JPA as well as incremental rate increases for water and sewer. Deferred outflows of resources represent the unamortized portion of changes to the net pension liability, which decreased by $307,725 from the prior fiscal year.
• Net investment in capital assets increased by $411,582 due to capital asset additions, deletions or adjustments. Additional capital asset information is in the Capital Asset section of this MD&A and in Note 4 to the financial statements. • Business-type activities use the same accrual basis of accounting as the Proprietary Funds and are used to account for those activities that are supported primarily by user charges to external customers. This includes water, water conservation and wastewater services.

For FY 2024-25, assets and deferred outflows exceeded liabilities and deferred inflows by $14.3 million for business type activities.
21 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

Analysis of Statement of Activities
The change in net position for governmental and business-type activities are as follows:
2024 2025 2024 2025 2024 2025

REVENUES
Charges for services $ 1,896,201 $ 2,736,301 $ 5,795,618 $ 5,595,444 $ 7,691,819 $ 8,331,745 Operating Contributions and Grants 8,845,685 5,949,683 8,845,685 5,949,683 Capital Contributions and Grants 287,585 283,822 287,585 283,822 General revenues:

Property taxes 8,014,612 8,321,178 8,014,612 8,321,178
Other taxes 8,667,192 9,074,700 8,667,192 9,074,700
Other revenues 875,825 597,708 268,705 953,141 1,144,530 1,550,849 Total revenues 28,587,100 26,963,392 6,064,323 6,548,585 34,651,423 33,511,977

EXPENSES
Governmental activities:

General Government 8,286,836 9,297,924 8,286,836 9,297,924 Public Safety 7,774,094 8,144,348 7,774,094 8,144,348
Community Development 6,467,427 1,110,347 6,467,427 1,110,347 Public Works 6,835,386 4,167,734 6,835,386 4,167,734
Parks and Recreation - - - -
Business-type activities:

Water 4,665,962 3,714,756 4,665,962 3,714,756
Water Conservation 4,771 3,387 4,771 3,387
Wastewater 1,326,010 1,383,646 1,326,010 1,383,646
Total expenses 29,363,743 22,720,353 5,996,743 5,101,789 35,360,486 27,822,142 Change in net position
before transfers (776,643) 4,243,039 67,580 1,446,796 (709,063) 5,689,835 Transfers 701,401 790,717 (701,401) (790,717) - -
Change in net position (75,242) 5,033,756 (633,821) 656,079 (709,063) 5,689,835 Net position - July 1 (4,283,781) (4,359,023) 14,317,875 13,684,054 10,034,094 9,325,031 Net position - June 30 $ (4,359,023) $ 674,733 $ 13,684,054 $ 14,340,133 $ 9,325,031 $ 15,014,866 Total
Program revenues:

Governmental Activities Business-type Activities
22 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

Grants and
Contributions
19% TOT Tax
3%
Property Tax
25%
Sales Tax
17%
Cannabis
Tax
3%
Charges for
Services
25%
Other
8%

REVENUES BY SOURCE
FY 2024-25
Public Safety
29%
Public Works
15% Community
Development
4%
Business-Type
Activities
18%
General
Government
34%

EXPENSES BY TYPE
FY 2024-25
23 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

Governmental Activities
Governmental activities increased the City’s net position by about $5 million. Total resources available during the year to finance governmental activities consisted of program revenues of $9 million, and general revenues of $18 million. Total expenses for governmental activities during the fiscal year were $22.7 million. Net interfund transfers for governmental activities from business type activities during the fiscal year were $790,717.

Key factors are as follows:
• Total revenue decreased by $1.6 million, from $28.6 million in the prior fiscal year to $27 million in the current fiscal year. This decrease is mainly attributed to grant revenues which have fluctuated from year-to-year based on the completion of ongoing capital projects.
• There was a increase in cannabis tax revenue of $ 26,681 as well as sales tax, which saw a increase of 147,723. Property tax revenuesincreased by $306,566 and increases in 3.8%. • Total expenses for governmental activities decreased by $6.6 million during the fiscal year mainly due to absence of CDBG pass through of $5 million in the prior year. • Interfund transfers included $5.1 transfers out mainly for passthrough grant activity and General Fund carryover amounts used reimburse CIP projects.

Business-Type Activities
The City’s net position from business-type activities increased by $656,079. The programs for the business-type activities include water, water conservation and wastewater utilities.

Key factors are as follows:
• Water net position increased by approximately $905,971 largely driven by income from JPA dissolution. Operating revenuesincreased by $69,181. Operating expenses decreased by $289,495, mostly related to lack of capital project activity. • Wastewater net position decreased by $256,041 due mostly to higher operating expenditures.
24 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
The focus on the City’s governmental funds is to account for the near-term inflows, outflows and balances of resources that are available for spending. This information is useful in assessing the City’s financing requirements. Specifically, unassigned fund balance is a useful measure of the agency’s net resources available to meet current and future needs at the end of the fiscal year.

Types of governmental funds reported by the City include the General Fund, Special Revenue Funds, Capital Projects Fund, and Debt Service Fund.

As of the fiscal year ended June 30, 2025, the City’s governmental funds reported a combined ending fund balance of $16.9 million. The General Fund decreased by $1.8 million mainly due to CIP project costs for West Grand Avenue project which had been allocated carried over from prior fiscal years.

For the fiscal year ended June 30, 2025, revenues for governmental funds overall totaled $28 million or $1.6 million less than the prior fiscal year. Expenditures for governmental funds totaled $30.4 million and included construction costs for major street rehabilitation, park rehabilitation and various other CIP projects and capital assets included in Capital Assets.

The City’s governmental funds are classified as major or nonmajor. Major funds meet the specified criteria of revenues, expenditures, assets, or liabilities of at least 10% of corresponding totals for all governmental and enterprise funds and at least 5% of the aggregate amount for all government and enterprise funds. A fund that does not meet the specified criteria can still be classified as a major fund if it is deemed important to financial statement users. For the current fiscal year 2024- 25, major funds included the General Fund, Street Rehabilitation and Repair Fund, and the Street Improvements Debt Service Fund. The City’s nonmajor funds that did not meet the specified criteria for a major fund are listed under Other Governmental Funds on the Governmental Funds Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances.

Proprietary Funds
The City’s proprietary funds statements provide the same type of information found in the government-wide financial statements but in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds.

At the end of the fiscal year, the unrestricted net position for the Water, Water Conservation and Wastewater Funds are $3.6 million, $369,281, and $4 million respectively, for a combined total of approximately $7.9 million in unrestricted net position for the proprietary funds. Key factors concerning the finances of the enterprise funds have been addressed previously in the discussion of the City’s business-type activities.
25 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2025, net capital assets of the governmental activities totaled $31.3 million, and the net capital assets of the business-type activities totaled $10 million.

The following table presents summary information on the City’s capital assets as of June 30, 2024 and 2025:

More detailed information about the City’s capital assets is presented in Note 4 to the basic financial statements section.

Debt Administration
As of June 30, 2025, the City had $52 million of outstanding long-term obligations related to governmental activities and $5.9 million related to business-type activities, for a total of $57.8 million. Debt outstanding as of June 30, 2025, with a comparison to prior year and the net change are as follows:

Total outstanding long-term debt for governmental activities decreased by $1,291,731 in fiscal year 2024-25.

In November 2014, Grover Beach voters passed Ballot Measure K-14, which approved the sale of bonds, up to $48 million dollars. These funds are to be used to fund improvements to the residential streets in the city. The first bonds were issued on March 25, 2015, and were issued for $5 million dollars, payable over 20 years. The second series of bonds were issued on March 31, 2024 2025 2024 2025 2024 2025
Land $1,890,915 $ 1,890,915 $260,849 $260,849 $2,151,764 $2,151,764 Construction in progress 1,841,021 10,286,028 408,529 1,939,529 2,249,550 12,225,557 Capacity rights 1,598,578 1,598,578 1,598,578 1,598,578 Equipment 4,269,735 4,339,994 779,228 779,228 5,048,963 5,119,222 Right-to-use leased equipment 511,505 577,314 73,072 73,072 584,577 650,386 Subscription Intagible 552,796 707,073 552,796 707,073
Infrastructure 26,803,358 26,803,358 14,134,134 14,134,134 40,937,492 40,937,492 Accumulated depreciation (11,695,328) (13,303,574) (8,428,616) (8,759,892) (20,123,944) (22,063,466) Net capital assets $24,174,002 $31,301,108 $8,825,774 $10,025,498 $32,999,776 $41,326,606 Governmental Activities Business-Type Activities Total
2024 2025 2024 2025 2024 2025
Bonds payable 36,277,203 35,286,061 $3,730,000 $ 3,537,000 $40,007,203 $38,823,061 Loans payable 63,098 38,047 63,098 38,047
Early retirement incentive 6,634 - 2,092 - 8,726 -
Compensated absences 809,453 893,761 139,181 142,132 948,634 1,035,893 Lease Liability 464,169 433,887 464,169 433,887
Lease-Purchase Financing 910,420 731,914 66,310 52,582 976,730 784,496 Subscription liability 114,845 93,851 114,845 93,851
Net pension liability 14,489,548 14,366,118 2,337,654 2,196,283 16,827,202 16,562,401 Total long-term debt 53,135,370 $51,843,639 $6,275,237 $5,927,997 $59,410,607 $57,771,636 Governmental Activities Business-Type Activities Total
26 CITY OF GROVER BEACH
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2025

2016, for $8 million dollars, also payable over 20 years. The third series of bonds were issued on December 20, 2017, for $15 million dollars, payable over 20 years. The fourth series of bonds were issued January 26, 2022, for $10 million and a total of $38 million in bonds being issued.

These series of bonds and future bonds will be placed on the property tax roll.

Total outstanding long-term debt for business-type activities decreased by $292,779 in fiscal year 2024-25. More detailed information about the City’s total long-term liabilities is presented in Note 6 to the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The budget for fiscal year 2025-26 assumes a balanced budget with reserves that are currently maintained at or above the General Fund Reserve policy of 25% of operating expenses. General Fund fiscal year 2025-26 budgeted appropriations, including Capital Improvements are set at $21.2 million.

The fiscal year 2025-26 budget has proposed capital expenditures of $6.9 million for infrastructure related projects.

Capital improvements included in the $6.9 million listed above includes:
• Ramona Park Project
• ADA improvement
• K-14 Street Improvements
• Non-arterial street improvements
As for the City's business-type activities, about $6.7 million is expected to be spent in fiscal year 2024-25 to conduct operations and make capital improvements. The enterprise fund programs are solely funded by charges for services to system users.

REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City's finances and to demonstrate the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Administrative Services Director, City of Grover Beach, 154 South 8th Street, Grover Beach, CA 93433.
27 CITY OF GROVER BEACH

STATEMENT OF NET POSITION
June 30, 2025
Governmental
Activities
Business-type
Activities Total
ASSETS
Cash and investments 14,680,073 $ 7,696,394 22,376,467
Accounts receivable, net 6,214,169 1,460,508 7,674,677
Interest receivable 62,995 46,679 109,674
Inventory 158,626 158,626
Loans receivable 333,975 333,975
Loans receivable - Successor Agency 29,870 29,870
Internal balances (704,639) 704,639 -
Prepaid items 1,612 1,612
Capital assets:

Non-Depreciable:

Land 1,890,915 260,849 2,151,764
Construction in progress 10,286,028 1,939,529 12,225,557 Depreciable and amortizable:

Equipment 4,339,994 779,228 5,119,222
Right-to-use leased assets 577,314 73,072 650,386
Subscription assets 707,073 707,073
Buildings and infrastructure 26,803,358 14,134,134 40,937,492 Capacity rights 1,598,578 1,598,578
Accumulated depreciation and amortization (13,303,574) (8,759,892) (22,063,466) Total assets 51,889,293 20,122,214 72,011,507

DEFERRED OUTFLOWS
Related to pensions 4,589,489 633,967 5,223,456
Total deferred outflows 4,589,489 633,967 5,223,456

LIABILITIES
Accounts payable 3,050,463 252,156 3,302,619
Accrued wages 106,137 106,137
Unearned revenue 107,541 107,541
Interest payable 415,504 31,736 447,240
Deposits 155,533 155,533
Noncurrent liabilites
Due within one year 1,646,214 267,909 1,914,123
Due in more than one year 50,197,425 5,660,088 55,857,513 Total Liabilities 55,523,284 6,367,422 61,890,706
The accompanying notes are an integral part of these financial statements. 29 CITY OF GROVER BEACH
STATEMENT OF NET POSITION (Continued)
June 30, 2025

DEFERRED INFLOWS
Related to pensions 280,764 48,626 329,390
Total deferred inflows 280,764 48,626 329,390

NET POSITION
Net investment in capital assets (2,030,157) 6,435,916 4,405,759 Restricted for:

Street improvements 1,408,773 1,408,773
Transportation 24,323 24,323
Public safety 273,730 273,730
Community development projects 188,498 188,498
Administrative functions 39,543 39,543
Storm water functions 178,573 178,573
Wastewater functions 412,330 412,330
Park facilities 342,761 342,761
Recreation facilities 90,775 90,775
State mandated ADA 15,033 15,033
Capital projects 454,190 454,190
Underground utilities 246,288 246,288
Home grant 122,500 122,500
Debt service 3,037,918 3,037,918
Unrestricted (4,130,344) 7,904,217 3,773,873
Total net position $ 674,734 $ 14,340,133 $ 15,014,867
The accompanying notes are an integral part of these financial statements. 30 CITY OF GROVER BEACH

STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2025
Expenses Charges for Services
Operating
Contributions and
Grants
Governmental activities:

General government $ 9,297,924 1,935,982 $ 3,797,429
Public safety 8,144,348 63,400 543,986
Community development 1,110,347 127,500 852,413
Public works 4,167,734 609,419 755,855
Parks and recreation -
Total governmental activities: 22,720,353 2,736,301 5,949,683 Business-type Activities:

Water 3,714,756 4,260,909
Water conservation 3,387 -
Wastewater 1,383,646 1,334,535
Total business-type Activities: 5,101,789 5,595,444
Total $ 27,822,142 $ 8,331,745 $ 5,949,683
Net position - beginning of fiscal year, restated
Investment income (loss)
Other revenues
Income from investment in joint venture
Transfers
Total general revenues and transfers
Change in net position
Net position - end of fiscal year
Other taxes
Program Revenues
General Revenues:

Taxes:

Property tax
Sales and use tax
Cannabis tax
Transient occupancy tax
Franchise fees
The accompanying notes are an integral part of these financial statements. 31 Capital
Contributions and
Grants
Governmental
Activities
Business-type
Activities Total
$ - $ (3,564,513) $ - $ (3,564,513)
(7,536,962) (7,536,962)
(130,434) (130,434)
283,822 (2,518,638) (2,518,638)
- -
283,822 (13,750,547) (13,750,547)
546,153 546,153
(3,387) (3,387)
(49,111) (49,111)
493,655 493,655
$ 283,822 (13,750,547) 493,655 (13,256,892)
8,321,178 8,321,178
5,880,971 5,880,971
1,093,170 1,093,170
1,028,421 1,028,421
846,346 846,346
225,792 225,792
579,709 233,445 813,154
18,000 719,696 737,696
-
790,717 (790,717) -
18,784,304 162,424 18,946,728
5,033,757 656,079 5,689,836
(4,359,023) 13,684,054 9,325,031
$ 674,734 $ 14,340,133 $ 15,014,867
evenues Net (Expenses) Revenue and Changes in Net Position The accompanying notes are an integral part of these financial statements. 32 CITY OF GROVER BEACH

GOVERNMENTAL FUNDS

BALANCE SHEET
June 30, 2025
General Fund
Street
Rehabilitation
and Repair
Fund Capital Projects
Street
Improvements
Debt Service
Fund
Other
Governmental
Funds Totals
ASSETS
Cash and investments $ 2,898,148 $ 3,431,418 $ 2,254,107 $ 3,037,918 $ 3,058,482 $ 14,680,073 Accounts receivable 5,615,690 5,000 47,823 545,656 6,214,169 Interest receivable 30,206 32,789 62,995
Loans receivable 333,975 333,975
Due from funds 384,937 384,937
Prepaid items 1,612 1,612
Total assets $ 8,930,593 $ 3,436,418 $ 2,301,930 $ 3,037,918 $ 3,970,902 $ 21,677,761

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 987,437 $ 183,923 $ 1,847,740 $ - $ 31,363 $ 3,050,463 Accrued wages 106,137 - - - 106,137
Due to funds 384,937 384,937
Advances payable 704,639 704,639
Unearned revenue 107,541 107,541
Total liabilities 1,905,754 183,923 1,847,740 - 416,300 4,353,717 Deferred Inflows of Resources:

Unavailable revenue 333,975 333,975
Total deferred inflows of resources - - - - 333,975 333,975 Fund Balances:

Nonspendable
Prepaid items 1,612 1,612
Restricted for:

Street improvements 3,252,495 1,408,773 4,661,268
Transportation 24,323 24,323
Public safety 273,730 273,730
Community development projects 188,498 188,498
Administrative functions 39,543 39,543
Storm water functions 178,573 178,573
Wastewater functions 412,330 412,330
Park facilities 342,761 342,761
Recreation facilities 90,775 90,775
State mandated ADA 15,033 15,033
Capital projects 454,190 454,190
Underground utilities 246,288 246,288
Debt service 3,037,918 - 3,037,918
Unassigned 7,023,227 - 7,023,227
Total fund balances 7,024,839 3,252,495 454,190 3,037,918 3,220,627 16,990,069 Total liabilities, deferred inflows of
resources, and fund balances $ 8,930,593 $ 3,436,418 $ 2,301,930 $ 3,037,918 $ 3,970,902 $ 21,677,761 The notes to financial statements are an integral part of this statement. 33 CITY OF GROVER BEACH
June 30, 2025
$ 16,990,069
all assets are reported, including capital assets and accumulated depreciation.

Land $ 1,890,915
CIP 10,286,028
Equipment 4,339,994
Right-to-use leased equipment 577,314
Subscription asset 707,073
Buildings and infrastructure 26,803,358
Capital assets at historical cost 44,604,682
Accumulated depreciation (13,303,574)
Net capital assets 31,301,108
it matures and is paid. In government-wide statements, it is recognized in the period that it is incurred. (415,504)
statement of net position, all liabilities, including long-term liabilities, are reported.

Long-term liabilities relating to governmental activities consist of:

State loan $ 38,047
Compensated absences payable 893,761
General obligation bonds 35,286,061
Leases 433,887
Subscription liability 93,851
Lease-purchase financing 731,914
Net pension liability 14,366,118
Total long-term liabilities (51,843,639)
are not reported because they are applicable to future periods. In the statement of net position, deferred outflows and inflows of resources relating to pensions are reported. 4,308,725
collected within the prescribed time period after fiscal year-end. However, the revenues are included on the accrual basis used in the government-wide financial statements. 333,975
Total net position - governmental activities $ 674,734
In governmental funds, deferred outflows and inflows of resources relating to pensions Certain revenues in the governmental funds are deferred because the revenues are not

RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET

TO THE STATEMENT OF NET POSITION
Total fund balances - governmental funds
In governmental funds, only current assets are reported. In the statement of net position, In governmental funds, interest on long-term debt is not recognized until the period in which Long-term liabilities: In governmental funds, only current liabilities are reported. In the The notes to financial statements are an integral part of this statement. 34 CITY OF GROVER BEACH

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2025
General Fund
Street
Rehabilitation and
Repair Fund Capital Projects
Street
Improvements
Debt Service Fund
Revenues:

Taxes $ 15,238,724 $ 2,157,153
Licenses, permits, and fees 542,467
Intergovernmental 3,879,052
Charges for services 1,164,522 47,824
Fines and forfeitures 30,509
Use of money and property 378,731 129,408 91,707
Other 18,000
Total revenues 21,234,005 147,408 47,824 2,248,860
Expenditures:

General government 8,687,090
Public safety 7,117,252
Community development 705,768
Public works 1,583,733 600,079 3,600
Capital outlay 492,405 7,811,913
Debt service:

Principal 203,557 855,000
Interest 47,223 1,195,800
Total expenditures 18,837,028 600,079 7,811,913 2,054,400 Excess of revenues over (under) expenditures 2,396,977 (452,671) (7,764,089) 194,460 Other Financing Sources (Uses):

Lease and subscription financing 220,085
Transfers in 737,817 40,000 8,317,579
Transfers out (5,135,645)
Total other financing sources (uses) (4,177,743) 40,000 8,317,579 - Net change in fund balances (1,780,766) (412,671) 553,490 194,460 Fund balances - July 1 8,805,605 3,665,166 (99,300) 2,843,458 Fund balances - June 30 $ 7,024,839 $ 3,252,495 $ 454,190 $ 3,037,918 The notes to financial statements are an integral part of this statement. 35 Other
Governmental
Funds Totals
$ - $ 17,395,877
542,467
2,354,453 6,233,505
800,533 2,012,879
30,509
130,311 730,157
18,000
3,285,297 26,963,394
86,140 8,773,230
54,714 7,171,966
330,794 1,036,562
350,803 2,538,215
254,864 8,559,182
1,058,557
1,243,023
1,077,315 30,380,735
2,207,982 (3,417,341)
220,085
9,095,396
(3,169,034) (8,304,679)
(3,169,034) 1,010,802
(961,052) (2,406,539)
4,181,679 19,396,608
$ 3,220,627 $ 16,990,069
The notes to financial statements are an integral part of this statement. 36 CITY OF GROVER BEACH
$ (2,406,539)
statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which additions to capital outlay of $8,735,352 exceeds depreciation and amortization expense $(1,608,246) in the period. 7,127,106 government-wide statements, repayments of long-term debt are reported as reductions of liabilities. 976,142
expenditures. In the government-wide statements, repayments of subscription based IT arrangements are reported as reductions of liabilities. 175,271 expenditures. In the government-wide statements, repayments of lease arrangements are reported as reductions of liabilities. 178,506 becomes due. In the government-wide statements of activities, it is recognized in the period that it is incurred. Unmatured interest owing at the end of the period, less matured interest paid during the period but owing from the prior period was: 12,220 during the fiscal year. In governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially the amounts paid). This fiscal year, vacation earned exceeded the amounts used by: (84,308) In the statement of activities, pension costs are recognized on the accrual basis.

This fiscal year, the difference between accrual-basis pension costs and actual employer contribution was: (867,331)
In the statement of activities, early retirement incentive benefit costs are recognized on the accrual basis. This year, the difference between benefits paid and accrued was: 6,634 financing source in the period it is incurred. In the government-wide statements, the premium is amortized as interest over the life of the debt. Amortization of debt issue premium for the period is: 136,142
government-wide statements, proceeds from debt are reported as increases to liabilities.

Amounts recognized in governmental funds as proceeds from debt, net of issue premium or discount, were: (220,086)
Changes in net position - governmental activities $ 5,033,757

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2025
Total net change in fund balances - governmental funds
Capital outlays are reported in governmental funds as expenditures. However, in the In governmental funds, early retirement incentive benefit costs are recognized when paid.

In governmental funds, if debt is issued at a premium, the premium is recognized as an other In governmental funds, proceeds from debt are recognized as other financing sources. In the In governmental funds, repayments of long-term debt are reported as expenditures. In the In governmental funds, payments of subscription based IT arrangements are reported as In governmental funds, payments of lease arrangements are reported as In governmental funds, interest on long-term debt is recognized in the period that it In the statement of activities, compensated absences are measured by the amounts earned In governmental funds, pension costs are recognized when employer contributions are made.

The notes to financial statements are an integral part of this statement. 37 CITY OF GROVER BEACH

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
June 30, 2025
Water Fund
Water
Conservation
Fund
Wastewater
Fund Totals
ASSETS
Current assets:

Cash and investments $ 3,815,123 $ 367,510 $ 3,513,761 $ 7,696,394 Accounts receivable,net 841,210 619,298 1,460,508
Interest receivable 23,563 2,146 20,970 46,679
Inventory at cost 158,626 158,626
Total current assets 4,838,522 369,656 4,154,029 9,362,207 Noncurrent assets:

Loans receivable 29,870 29,870
Advances receivable 704,639 704,639
Capital assets:

Land 260,849 260,849
Construction in progress 1,242,995 696,534 1,939,529
Equipment 311,335 467,893 779,228
Infrastructure 9,774,687 4,359,447 14,134,134
Right of use leased asset 36,536 36,536 73,072
Capacity rights 1,598,578 1,598,578
11,626,402 7,158,988 18,785,390
Less accumulated depreciation (4,347,690) (4,412,202) (8,759,892) Total capital assets, net of accumulated depreciation 7,278,712 2,746,786 10,025,498 Total noncurrent assets 7,308,582 - 3,451,425 10,760,007 Total assets 12,147,104 369,656 7,605,454 20,122,214

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 355,274 278,693 633,967
Total deferred outflows of resources 355,274 278,693 633,967

LIABILITIES
Current liabilities:

Accounts payable 90,788 375 160,993 252,156
Deposits 155,533 155,533
Accrued interest payable 31,736 31,736
Compensated absences - current 30,950 24,819 55,769
Lease liability - current 7,070 7,070 14,140
Revenue bonds - current 198,000 198,000
Total current liabilities 514,077 375 192,882 707,334
Noncurrent liabilities:

Lease liability, net of current 19,221 19,221 38,442
Revenue bonds, net of current 3,339,000 3,339,000
Compensated absences, net of current 53,204 33,159 86,363 Net pension liability 1,250,625 945,658 2,196,283
Total noncurrent liabilities 4,662,050 998,038 5,660,088 Total liabilities 5,176,127 375 1,190,920 6,367,422

DEFERRED INFLOWS OF RESOURCES
Related to pensions 27,689 20,937 48,626
Total deferred inflows of resources 27,689 20,937 48,626

NET POSITION
Net investment in capital assets 3,715,421 - 2,720,495 6,435,916 Unrestricted 3,583,141 369,281 3,951,795 7,904,217
Total net position $ 7,298,562 $ 369,281 $ 6,672,290 $ 14,340,133 The notes to financial statements are an integral part of this statement. 38 CITY OF GROVER BEACH

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2025
Water Fund
Water
Conservation
Fund
Wastewater
Fund Totals
Operating Revenues:

Charges for services $ 4,111,761 $ - $ 1,325,261 $ 5,437,022 Other operating revenues 149,148 9,274 158,422
Total operating revenues 4,260,909 - 1,334,535 5,595,444 Operating Expenses:

Salaries and benefits 892,453 212 866,851 1,759,516
Supplies and services 2,403,733 3,175 418,513 2,825,421 Non-capitalized equipment 97,295 97,295
Depreciation 232,994 98,282 331,276
Total operating expenses 3,626,475 3,387 1,383,646 5,013,508 Operating income (loss) 634,434 (3,387) (49,111) 581,936 Non-Operating Revenues (Expenses):

Dissolution of Joint Powers Authority 719,696 719,696
Interest income 98,275 9,536 125,634 233,445
Interest expense (88,281) (88,281)
Total non-operating revenues (expenses) 729,690 9,536 125,634 864,860 Income (loss) before transfers 1,364,124 6,149 76,523 1,446,796 Transfers:

Transfers out (458,153) (332,564) (790,717)
Total transfers (458,153) (332,564) (790,717)
Change in net position 905,971 6,149 (256,041) 656,079
Net position - July 1 6,392,591 363,132 6,928,331 13,684,054 Net position - June 30 $ 7,298,562 $ 369,281 $ 6,672,290 $ 14,340,133 The notes to financial statements are an integral part of this statement. 39 CITY OF GROVER BEACH

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
For the Fiscal Year Ended June 30, 2025
Water Fund
Water
Conservation
Fund
Wastewater
Fund Totals
Cash Flows From Operating Activities:

Receipts from customers $ 3,999,183 $ - $ 1,351,102 $ 5,350,285 Payments to suppliers (2,488,561) (2,800) (482,243) (2,973,604) Payments to employees (861,135) (212) (784,349) (1,645,696) Other receipts 149,148 9,274 158,422
Net cash provided (used) by operating activities 798,635 (3,012) 93,784 889,407 Cash Flows From Capital and Related Financing Activities:

Principal paid on lease liabilities (6,864) (6,864) (13,728) Interest paid on long-term debt (88,281) (88,281)
Principal paid on long-term debt (193,000) (193,000)
Acquisition of capital assets (1,117,056) (413,944) (1,531,000) Net cash used by capital and related financing activities (1,405,201) (420,808) (1,826,009) Cash Flows From Noncapital Financing Activities:

Cash received from dissolution of Joint Powers Authority 719,696 719,696 Advances to/from other funds 337,003 337,003
Transfers to other funds (458,153) (332,564) (790,717)
Net cash provided by noncapital financing activities 261,543 - 4,439 265,982 Cash Flows From Investing Activities:

Interest income received 112,925 10,551 140,879 264,355 Net cash provided by investing activities 112,925 10,551 140,879 264,355 Net increase (decrease) in cash and cash equivalents (232,098) 7,539 (181,706) (406,265) Cash and cash equivalents - July 1 4,047,221 359,971 3,695,467 8,102,659 Cash and cash equivalents - June 30 $ 3,815,123 $ 367,510 $ 3,513,761 $ 7,696,394 The notes to financial statements are an integral part of this statement. 40 CITY OF GROVER BEACH

PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS (Continued)
For the Fiscal Year Ended June 30, 2025
Water Fund
Water
Conservation
Fund
Wastewater
Fund Totals
Reconciliation of operating income (loss) to net cash provided (used) by operating activities:

Operating income (loss) $ 634,434 $ (3,387) $ (49,111) $ 581,936 Adjustments to reconcile operating activities:

Depreciation expense 232,994 98,282 331,276
Changes in assets, deferred outflows of resources,
liabilities and deferred inflows of resources:

Receivables, net (125,401) 25,841 (99,560)
Inventories (30,401) (30,401)
Deferred outflows 184,422 123,303 307,725
Accounts payable 42,868 375 (63,730) (20,487)
Accrued payroll (8,819) (7,906) (16,725)
Deposits 12,823 12,823
Compensated absences 949 2,002 2,951
Early retirement (640) (1,452) (2,092)
Net pension liability (122,193) (19,178) (141,371)
Deferred inflows (22,401) (14,267) (36,668)
Net cash provided (used) by operating activities $ 798,635 $ (3,012) $ 93,784 $ 889,407 The notes to financial statements are an integral part of this statement. 41 CITY OF GROVER BEACH

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
For the Fiscal Year Ended June 30, 2025
Private Purpose
Trust Funds
Custodial
Funds
ASSETS
Cash and investments $ 29,079 $ 635,486
Cash and investments with fiscal agent 330,758
Land held for projects 380,000
Total assets 739,837 $ 635,486

LIABILITIES
Accounts payable and other liabilities $ - $ 3,612
Accrued interest payable 55,729
Due to local governments 312,378
Unearned revenue 229,626
Noncurrent liabilities
Due within one year 165,000
Due in more than one year 2,229,869
Total Liabilities 2,680,224 $ 315,990

NET POSITION
Restricted for:

Individuals, organizations, and other governments (1,940,387) 319,496 Total net position $ (1,940,387) $ 319,496
The accompanying notes are an integral part of these financial statements. 42 CITY OF GROVER BEACH

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
For the Fiscal Year Ended June 30, 2025
Additions:

Private Purpose
Trust Funds Custodial Funds
Taxes $ 293,250 $ 118,527
Interest 17,020
Building and planning deposits 224,326
Other 405,430
Total additions 310,270 748,283
Deductions:

Community development 6,415
Payment of tourism marketing district tax to other governments 114,090 Refunds and transfers to other systems 360,004
Interest expense 122,250
Other expense 5,728
Total deductions 128,665 479,822
Change in net position 181,605 268,461
Total net position-beginning (2,121,992) 51,035
Total net position-ending $ (1,940,387) $ 319,496
The accompanying notes are an integral part of these financial statements. 43 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The accompanying basic financial statements present the financial activity of the City of Grover Beach. There are no component units included in this report which meet the criteria of GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statements No. 39, No. 61, and No. 80.

B. Basis of Presentation
The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

UGovernment-wide Statements
The Statement of Net Position and the Statement of Activities display information about the City.

These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. The City does not eliminate interfund services provided and used during the process of consolidation. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program, and (c) fees, grants, and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

UFund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds.

Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major individual funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

Proprietary fund financial statements include a Statement of Net Position; a Statement of Revenues, Expenses, and Changes in Net Position; and a Statement of Cash Flows for all 44 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation (Continued)
Fund Financial Statements (Continued)
proprietary funds.

Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which liability is incurred.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operation of the fund. All other revenues are reported as nonoperating revenues.

Operating expenses are those expenses that are essential to the primary operations of the fund.

All other expenses are reported as nonoperating expenses.

Fiduciary funds are used to account for assets held by the City in a trustee capacity or as a custodian for individuals, private organizations, other governmental units, and/or other funds. Fiduciary Funds use the full accrual basis of accounting and a measurement focus on the periodic determination of additions, deductions, and net position restricted for others. Fiduciary funds are reported in the fund financial statements but are not included for government-wide reporting purposes.

C. Major Funds
GASB Statement No. 34, defines major funds and requires that the City’s major funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund-type.

Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-type total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:

General FundU
This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City.

UStreet Rehabilitation and Repair Fund
This is a special revenue fund that accounts for bond proceeds from the issuance of debt and is restricted to the repairs and maintenance of City streets. 45 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds (Continued)
Capital Projects Fund
This is a capital projects fund that accounts for major capital projects activity.

Street Improvements Debt Service Fund
This fund is held by the County of San Luis Obispo and pays the semiannual principal and interest payments for the general obligation bonds issued to finance street improvements within the City.

The City reported the following major proprietary funds:

UWater Fund
This fund accounts for the activities of providing water to residents of the City.

UWastewater Fund
This fund accounts for the activities associated with the sewage treatment plant, pumping stations, and collection systems.

UWater Conservation Fund
This fund accounts for water conservation fees and is restricted to improving water conservation within the City.

D. Basis of Accounting
The government-wide, proprietary funds, and fiduciary funds financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting.

Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after fiscal year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under financed purchases are reported as other financing sources.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. 46 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting (Continued)
reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures/expenses. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

E. Compensated Absences
Governmental Accounting Standards Board Statement No. 101 identifies certain items that should be accrued as a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. For governmental type funds, the current liability appears in the respective funds. All vacation paid is accrued when incurred in the government-wide and proprietary funds financial statements. This liability is set up for the current employees at the current rates of pay. The General Fund is primarily responsible for the repayment of the governmental portion of compensated absences.

F. Property Taxes
California Constitution Article XIII A limits the combined property tax rate to one percent of a property’s assessed valuation. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property’s fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership occurs.

The State Legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions.

Property tax revenues are recognized in the fiscal year for which taxes have been levied and collected within sixty days of fiscal year end. Property taxes are billed and collected as follows on the next page:

USecuredU UUnsecured
Valuation/Lien Date(s) January 1 January 1
Levy Date(s) July 1 July 1
Due Date(s) November 1 (50%) August 1
February 1 (50%)
Delinquency Date(s) December 10 (November) August 31
April 10 (February)
47 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair value on the date contributed. Any donated capital assets or donated works of art and similar items are valued at their acquisition value rather than fair value. Any capital assets received in a service concession arrangement are valued at their acquisition value. The City’s policy is to capitalize all capital assets with costs exceeding the minimum thresholds at $5,000, except for infrastructure at $25,000 and with useful lives exceeding one year.

With the implementation of GASB Statement No. 34, the City was not required to record infrastructure assets existing or acquired prior to July 1, 2001. The City elected not to record such infrastructure assets. The City may elect to record such infrastructure assets in the future.

The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each fiscal year represents that fiscal year’s pro rata share of the cost of capital assets. GASB Statement No. 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives.

Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each fiscal year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets.

Structures and Improvements 50 years
Equipment 5-25 years
Infrastructure 15-50 years
H. Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognizes deferred outflows and inflows of resources.

In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources represent a consumption of net assets that applies to future periods. The City has one item which qualifies for reporting in this category, refer to Note 7 for a detailed listing of the deferred outflows of resources the City has recognized.

In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. A deferred inflow of resources represent an acquisition of net assets that applies to future periods. The City has two items which qualify for reporting in this category; refer to Note 7 and Note 15 for a detailed listing of the deferred inflows of resources the City has recognized.
48 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenditures, or expenses as appropriate. Actual results could differ from those estimates.

J. Cash Equivalents
For purposes of the Statement of Cash Flows, the City considers all highly liquid investment instruments purchased with a maturity of three months or less to be cash equivalents.

K. Fund Balances
Fund balances of the governmental funds are classified as follows:

Nonspendable Fund Balance – represents amounts that cannot be spent because they are either not in spendable form (such as inventory or prepaid insurance) or legally required to remain intact (such as notes receivable or principal of a permanent fund).

Restricted Fund Balance – represents amounts that are constrained by external parties, constitutional provisions or enabling legislation.

Committed Fund Balance – represents amounts that can only be used for a specific purpose because of a formal action by the City’s governing board. Committed amounts cannot be used for any other purpose unless the governing board removes those constraints by taking the same type of formal action. Committed fund balance amounts may be used for other purposes with appropriate due process by the governing board. Commitments are typically done through adoption and amendment of the budget. Committed fund balance amounts differ from restricted balances in that the constraints on their use do not come from outside parties, constitutional provisions, or enabling legislation.

Assigned Fund Balance – represents amounts which the City intends to use for a specific purpose, but that do not meet the criteria to be classified as restricted or committed. Intent may be stipulated by the governing board or by an official or body to which the governing board delegates the authority. Specific amounts that are not restricted or committed in a special revenue, capital projects, debt service, or permanent fund are assigned for purposes in accordance with the nature of their fund type or the fund’s primary purpose. Assignments within the general fund conveys that the intended use of those amounts is for a specific purpose that is narrower than the general purpose of the City.
49 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Fund Balances (Continued)
Unassigned Fund Balance – represents amounts which are unconstrained in that they may be spent for any purpose. Only the general fund reports a positive unassigned fund balance. Other governmental funds might report a negative balance in this classification because of overspending for specific purposes for which amounts had been restricted, committed, or assigned.

When an expenditure is incurred for a purpose for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds.

L. Net Position
GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted.

Net position that is net investment in capital assets consist of capital assets, net of accumulated depreciation, and reduced by the outstanding principal of related debt. Unspent bond proceeds should be reported as either restricted or unrestricted assets, as appropriate, and the related portion of the bonded debt should be reported in the same component of net position as the unspent proceeds, and therefore will not have any net effect on any classifications of net position.

Restricted net position is the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislations. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position.

M. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City California Public Employees’ Retirement System (CalPERS) Miscellaneous and Safety Plans and additions to/deductions from Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund is primarily responsible for the repayment of the governmental portion of the pension liability. 50 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Accounting Pronouncements
O. Leases
Lessee: The City is a lessee for a noncancellable lease of equipment. The City of Grover Beach recognizes a lease liability and an intangible right-to-use lease asset in the government-wide financial statements. The City recognizes lease liabilities with an initial individual value of $50,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of the lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

GASB Accounting Pronouncements
GASB Statements listed below were implemented in the current year financial statements:

Statement No. 101 "Compensated Abesenses" The provisions of this statement are effective for financial statement starting with the fiscal year that ends June 30, 2025.

Statement No. 102 "Certain Risk Disclosures" The provisions of this statement are effective for financial statement starting with the fiscal year that ends June 30, 2025.

GASB Statements listed below will be implemented in future year financial statements:

Statement No. 103 "Financial Reporting Model The provisions of this statement are effective for financial Improvements" statement starting with the fiscal year that ends June 30, 2026.

Statement No. 104 "Disclosure of Certain Capital The provisions of this statement are effective for financial Assets" statement starting with the fiscal year that ends June 30, 2026.

Statement No. 105 "Subsequent Events" Statement No. 105 “Subsequent Events” The provisions of this statement are effective for financial statements starting with the fiscal year that ends June 30, 2027.
51 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O. Leases (continued)
Key estimates and judgements related to leases include how the City determines 1) the discount rate it uses to discount the expected lease payments to present value, 2) lease term, and 3) lease payments,
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease assets are reported with the other capital assets and lease liabilities are reported with longterm debt on the statement of net position.

P. Subscription-Based Assets and Liabilities
The City accounts for Subscription-Based Information Technology Arrangements (“SBITAs”) in accordance with GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This statement provides guidance on accounting and financial reporting for SBITAs for government end users. SBITAs are defined as a contract that conveys control of the right to use another party’s information technology (IT) software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction.

A government is required to recognize a right-to-use subscription asset – an intangible asset – and a corresponding subscription liability. The subscription liability is measured at the present value of the subscription payments expected to be made during the subscription term. Future payments are discounted using an incremental borrowing rate of 2.656%.

The City’s right of use SBITAs is included in capital assets on the Statement of Net Position. See Note 4. See Note 6 for information on the City’s SBITA activities and balances for the year ended June 30, 2025.

Q. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the Government-wide and Fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than purchased. 52 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for governmental funds. The City’s budget ordinance requires that by June 1P
st
P each year, the City Manager must submit a preliminary budget that includes projected expenditures and the means of financing them, to the City Council for the fiscal year commencing the following July 1. As modified during public study sessions, the preliminary budget becomes the proposed budget. Following public hearings on the proposed budget, the final annual budget is adopted by the City Council in June of the next fiscal year. After adoption of the final budget, transfers of appropriations within a general fund department, or within other funds, can be made by the City Manager.

Budgeted expenditures may be reallocated within a fund by the City Manager, and within a department program by the department director, but any inter-fund transfers or reallocation must be approved by resolution of the City Council. Numerous properly authorized amendments are made during the fiscal year. Budgetary control is enhanced by integrating the budget into the general ledger accounts. Encumbrance accounting is employed (e.g., purchase orders) to avoid expenditures over budget. Encumbrances outstanding at fiscal year-end are automatically rebudgeted in the following fiscal year.

The City is not required to adopt an annual budget for the Street Improvement Debt Service Fund as part of its budgetary process. Historically, the budget comparison for the Debt Service Fund has not been presented in the financial statements. Accordingly, the City does not include a budgetto-actual comparison for the Street Improvement Debt Service Fund in accordance with the Governmental Accounting Standards Board (GASB) standards.

This is consistent with the City's practice and reflects the City's unique financial structure and operational requirements.
53 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) B. Excess of Expenditures Over Appropriations
Excess of expenditures over appropriations in individual funds are as follows:

NOTE 3 – CASH AND INVESTMENTS
Cash and investments are classified in the financial statements as shown below, based on whether their use is restricted under the terms of the City’s debt instruments or Agency’s agreements:

On June 30, 2025, the City had the following cash and investments on hand:

Major Funds:

General Fund:

General government $ 1,334,458
Street Rehabilitation and Repair Fund:

Public works $ 319,952
Capital Projects Fund:

Capital outlay $ 1,792,913
Nonmajor Funds:

Special Revenue Funds:

General government $ 86,897
Public safety $ 183,381
Community development $ 330,794
Public works $ 2,428
Capital outlay $ 57,090
Cash and Investments $ 22,376,467
Total cash and investments, statement of net position 22,376,467 Cash and Investments 664,565
Cash and investments with fiscal agent 330,758
Total cash and investments, statement of fiduciary net position 995,323 Total cash and investments $ 23,371,790
Cash on hand $ 1,252
Demand deposits with financial institutions 9,256,474
Investments 14,114,064
Total cash and investments $ 23,371,790
54 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 3 – CASH AND INVESTMENTS (Continued)
Fair Value Measurements
The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. Investment securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Investment securities classified in Level 2 of the fair value hierarchy are valued using matrix pricing or market corroborated pricing. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Investment securities classified in Level 3 of the fair value hierarchy are valued using significant unobservable inputs.

At June 30, 2025, the City had investments in the San Luis Obispo County Investment Pool which are measured under Level 2 of the fair value hierarchy. The City’s investments in US Agency securities and US Corporate Note Obligations are classified in Level 2 of the fair value hierarchy and are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. The City’s remaining investments are held in money market funds and the Local Agency Investment Fund (LAIF), which is not subject to the fair value hierarchy.

Investment Type June 30, 2025 Level 1 Level 2 Level 3
San Luis Obispo County
Investment Pool $ 3,037,918 $ - $ 3,037,918 $ -
US Corporate Note Obligations 746,667 746,667
3,784,585 $ - $ 3,784,585 $ -
Investments at Amortized Cost
Held by Bond Trustees:

Money Market Funds 330,758
Investments not Subject to Hierarchy
LAIF 9,998,721
Total Investments $ 14,114,064
55 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 3 – CASH AND INVESTMENTS (Continued)
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code. The table also identifies certain provisions of the California Government Code that address interest rate risk, credit risk, and concentration of credit risk.

Authorized
Investment Type
Maximum
Maturity
Maximum
Percentage Of
Portfolio
Maximum
Investment
in One Issuer
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years 60% None
U.S. Agency Securities 5 years None None
Bankers' Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 1 year 20% None
Repurchase Agreements 1 year None None
Reverse Repurchase Agreements 92 days 20% of base value None Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Funds N/A 20% 10%
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (other investment pools) N/A None None
Guaranteed Investment Contracts 15 months None None
Canadian Government Obligations 5 years None None
Investments Authorized by Debt Agreements
Investment of note proceeds held by note trustees are governed by the provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table on the following page identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized
Investment Type
Maximum
Maturity
Maximum
Percentage
Of
Portfolio
Maximum
Investment
in One Issuer
Money market accounts N/A None None
56 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 3 – CASH AND INVESTMENTS (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of rating by a nationally recognized statistical rating organization. Presented on the following page is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

Investment Type Fair Value
12 Months Or
Less 13-24 Months
25-60
Months
More than
60 Months
LAIF $ 9,998,721 $ 9,998,721 $ - $ - $ -
San Luis Obispo County
Investment Pool 3,037,918 3,037,918
Held by Bond Trustees:

Money Market Funds 330,758 330,758
US Corporate Note Obligations 746,667 244,953 250,321 251,393 $ 14,114,064 $ 13,612,350 $ 250,321 $ 251,393 $ -
Remaining Maturity (in Months) Minimum Not
Legal Required to
Investment Type Fair Value Rating be Rated AAA AA Unrated LAIF $ 9,998,721 N/A $ 9,998,721 $ - $ - $ -
San Luis Obispo County
Investment Pool 3,037,918 N/A 3,037,918
Held by Bond Trustees:

Money Market Funds 330,758 N/A 330,758
US Corporate Note Obligations 746,667 N/A 746,667
$ 14,114,064 $ 9,998,721 $ - $ - $ 4,115,343
Rating as of Fiscal Year End
57 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 3 – CASH AND INVESTMENTS (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent 5% or more of total City’s investments.

UCustodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under State law (unless waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

None of the City’s deposits with financial institutions in excess of the Federal Depository Insurance Corporation’s limits were held in uncollateralized accounts.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities with mutual funds or government investment pools (such as LAIF or the San Luis Obispo County Investment Pool).

U
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying basic financial statements at the amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 58 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the City’s governmental activities for the fiscal year ended June 30, 2025, is as follows:

Balance
June 30, 2024 Additions Deletions
Transfers/
Reclass
Balance
June 30, 2025
Non-depreciable capital assets
Land $ 1,890,915 $ - $ - $ 1,890,915
Construction in progress 1,841,021 8,445,007 10,286,028 Total nondepreciable capital assets $ 3,731,936 $ 8,445,007 $ - $ - $ 12,176,943 Depreciable and amortizable capital assets
Equipment $ 4,269,735 $ 70,259 $ 4,339,994
Right-to-use leased assets:

Vehicle 65,809 65,809
Building 511,505 511,505
Subscription intangible asset 552,796 154,277 707,073
Buildings and improvements 26,803,358 26,803,358
Total depreciable and amortizable capital
assets 32,137,394 290,345 - - 32,427,739
Accumulated depreciation/amortization
Equipment 2,209,210 $ 848,501 3,057,711
Right-to-use leased assets:

Vehicle - -
Building 36,536 83,511 120,047
Subscription intangible asset 363,742 157,560 521,302
Buildings and improvements 9,085,840 518,674 9,604,514
Total accumulated depreciation 11,695,328 1,608,246 - 13,303,574 Net depreciable and amortizable capital
assets $ 20,442,066 $ (1,317,901) $ - $ - $ 19,124,165
Net capital assets $ 24,174,002 $ 7,127,106 $ - $ - $ 31,301,108 59 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 4 – CAPITAL ASSETS (Continued)
Capital asset activity for the City’s business-type activities for the fiscal year ended June 30, 2025, is as follows:

Depreciation expense the City’s governmental and business-type activities for the fiscal year ended June 30, 2025, is as follows:

Balance
June 30, 2024 Additions Deletions Transfers/Reclass
Balance
June 30, 2025
Non-depreciable capital assets
Land $ 260,849 $ - $ - $ - $ 260,849
Construction in progress 408,529 1,531,000 1,939,529
Total nondepreciable capital assets $ 669,378 $ 1,531,000 $ - $ - $ 2,200,378 Depreciable capital assets
Capacity rights $ 1,598,578 $ - $ - $ - $ 1,598,578
Equipment 779,228 779,228
Right of use leased asset - building 73,072 73,072
Infrastructure 14,134,134 - 14,134,134
Total depreciable capital assets 16,585,012 - - - 16,585,012 Accumulated depreciation
Capacity rights 1,054,911 24,619 1,079,530
Equipment 641,904 53,266 695,170
Right of use leased asset - building 5,220 10,438 15,658 Infrastructure 6,726,581 242,953 6,969,534
Total accumulated depreciation 8,428,616 331,276 - - 8,759,892 Net depreciable capital assets $ 8,156,396 $ (331,276) $ - $ - $ 7,825,120 Net capital assets $ 8,825,774 $ 1,199,724 $ - $ - $ 10,025,498 Governmental Activities:

General Government $ 509,165
Public Safety 425,216
Public Works 673,865
Total depreciation and amortization expense - governmental activities $ 1,608,246

Business-type Activities:

Water $ 232,994
Wastewater 98,282
Total depreciation expense - business-type activities $ 331,276 60 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 5 – INTERFUND TRANSACTIONS
Due from/due to:

Advances from/to other funds:

Advances receivable and payable constitute long-term borrowing between funds. Each advance carries a state interest rate and has scheduled debt service payments. Interfund advances receivable and payable balance on June 30, 2025, are as follows:

Interfund transfers:

During the year, transfers are mainly used to move overhead cost allocations from the Enterprise Funds to the General Fund and move funding from various funds to pay for capital improvement projects.

Due to/from other funds:

Receivable Fund Payable Fund Amount
General Fund CDBG Non Entitlement $ 384,937
Advances from/to other funds
Receivable Fund Payable Fund Amount
Wastewater Fund General Fund $ 704,639
General
Fund
Street
Rehabilitation
and Repair Fund Capital Projects Total
Transfers out:

General Fund $ - $ 5,135,645 $ 5,135,645
Nonmajor Governmental Funds - 3,169,034 3,169,034
Enterprise Fund-Water Fund 418,153 40,000 458,153
Enterprise Fund-Wastewater Fund 319,664 12,900 332,564
Total $ 737,817 $ 40,000 $ 8,317,579 $ 9,095,396

Transfers in:
61 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 6 – LONG-TERM LIABILITIES
U Changes in Long-Term Liabilities
Long-term liability activity for the fiscal year ended June 30, 2025, was as follows:

Compensated Absences
Governmental Accounting Standards Board Statement No. 101 identifies certain items that should be accrued as a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment.

City employees accumulate earned but unused benefits which can be converted to cash at termination of employment. The non-current portion of these vested benefits, payable in accordance with various collective bargaining agreements, on June 30, 2025, total $893,761 for governmental activities and $142,132 for business-type activities.

Balance Balance Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Governmental Activities:

General obligations bonds $ 33,550,000 $ 855,000 $ 32,695,000 $ 895,000 Unamortized premium 2,727,203 136,142 2,591,061 136,142 Total general obligation bonds 36,277,203 991,142 35,286,061 1,031,142 State loan 63,098 25,051 38,047 25,302
Early retirement incentive 6,634 6,634 - -
Compensated absences 809,453 298,605 214,297 893,761 236,617 Lease liability 464,169 65,809 96,091 433,887 111,979
Subscription liability 114,845 154,277 175,271 93,851 54,419 Lease-purchase financing 910,420 178,506 731,914 186,755 Net pension liability 14,489,548 3,092,538 3,215,968 14,366,118 Total governmental activities $ 53,135,370 $ 3,611,229 $ 4,902,960 $ 51,843,639 $ 1,646,214

Business-type Activities:

Water revenue bond $ 3,730,000 $ 193,000 $ 3,537,000 $ 198,000 Early retirement incentive 2,092 2,092 -
Compensated absences 139,181 57,562 54,611 142,132 55,769 Lease liability 66,310 13,728 52,582 14,140
Net pension liability 2,337,654 956,346 1,097,717 2,196,283 Total business-type activities $ 6,275,237 $ 1,013,908 $ 1,361,148 $ 5,927,997 $ 267,909 62 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 6 – LONG-TERM LIABILITIES (Continued)
UState Loan
The City entered into a loan agreement with the California Energy Resources Conservation and Development commission for an energy savings project. Loan funds were disbursed on a reimbursement basis. The project was completed on December 31, 2011. Loan payments began on December 22, 2012, and terminate December 22, 2026, with an annual interest rate of 1.00% payable on a semi-annual basis.

Future minimum payment obligations for the loan payable on June 30, 2025, are as follows:

General Obligation Bonds
The City is authorized to issue general obligation bonds in an amount not to exceed $48,000,000 to finance improvements to streets within the City. The bonds were authorized at an election of the registered voters of the City held on November 4, 2014.

On March 10, 2015, the City issued $5,000,000 of those bonds at a premium of $376,225. The bonds are payable semiannually on March 1 and September 1 of each year with interest rates varying from 3% to 5%. The bonds are subject to optional and mandatory redemption prior to maturity. As of June 30, 2025, $3,770,000 was still outstanding.

Future minimum payment obligations for the bonds on June 30, 2025, are as follows:

Fiscal year Ending June 30 Principal Interest Total
2026 $ 25,302 $ 318 $ 25,620
2027 12,745 66 12,811
$ 38,047 $ 384 $ 38,431

Fiscal year Ending June 30 Principal Interest Total
2026 $ 175,000 $ 138,556 $ 313,556
2027 180,000 129,681 309,681
2028 190,000 120,432 310,432
2029 200,000 110,682 310,682
2030 210,000 102,531 312,531
2031-2035 1,150,000 411,135 1,561,135
2036-2040 1,360,000 197,766 1,557,766
2041 305,000 6,100 311,100
$ 3,770,000 $ 1,216,883 $ 4,986,883

63 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 6 – LONG-TERM LIABILITIES (Continued)
UGeneral Obligation Bonds (Continued)
On April 16, 2016, the City issued $8,000,000 of those bonds at a premium of $509,358. The bonds are payable semiannually on March 1 and September 1 of each year with interest rates varying from 2% to 5%. The bonds are subject to optional and mandatory redemption prior to maturity. As of June 30, 2025, $6,210,000 was still outstanding.

Future minimum payment obligations for the bonds on June 30, 2025, are as follows:

On December 5, 2017, the City issued $15,000,000 of those bonds at a premium of $1,110,466. The bonds are payable semiannually on March 1 and September 1 of each year with interest rates varying from 3% to 5%. The bonds are subject to optional and mandatory redemption prior to maturity. As of June 30, 2025, $12,715,000 was still outstanding.

Future minimum payment obligations for the bonds on June 30, 2025, are as follows:

Fiscal year Ending June 30 Principal Interest Total
2026 $ 270,000 $ 200,094 $ 470,094
2027 285,000 186,219 471,219
2028 300,000 173,094 473,094
2029 310,000 160,894 470,894
2030 325,000 149,819 474,819
2031-2035 1,765,000 595,795 2,360,795
2036-2040 2,045,000 309,286 2,354,286
2041-2042 910,000 29,737 939,737
$ 6,210,000 $ 1,804,938 $ 8,014,938

Fiscal year Ending June 30 Principal Interest Total
2026 $ 450,000 $ 449,600 $ 899,600
2027 470,000 426,600 896,600
2028 495,000 402,475 897,475
2029 520,000 377,100 897,100
2030 545,000 350,475 895,475
2031-2035 3,140,000 1,347,050 4,487,050
2036-2040 3,705,000 792,675 4,497,675
2041-2044 3,390,000 207,150 3,597,150
$ 12,715,000 $ 4,353,125 $ 17,068,125

64 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 6 – LONG-TERM LIABILITIES (Continued)
On January 26, 2022, the City issued $10,000,000 of those bonds at a premium of $1,457,191. The bonds are payable semiannually on March 1 and September 1 of each year with interest rates varying from 3% to 5%. The bonds are subject to optional and mandatory redemption prior to maturity. As of June 30, 2025, $10,000,000 was still outstanding.

Future minimum payment for the bonds on June 30, 2025, are as follows:

Water Revenue Bond
On February 26, 2020, the City issued $4,456,000 of water revenue bonds to use for capital projects. The bonds are payable semiannually on March 1 and September 1 of each year with an interest rate of 2.43%.

As of June 30, 2025, 3,537,000 is still outstanding.

Future minimum payment for the bonds on June 30, 2025, are as follows:

Fiscal year Ending June 30 Principal Interest Total
2026 $ - $ 363,800 $ 363,800
2027 15,000 363,800 378,800
2028 15,000 363,350 378,350
2029 15,000 362,900 377,900
2030 15,000 362,450 377,450
2031-2035 95,000 1,801,200 1,896,200
2036-2040 100,000 1,782,600 1,882,600
2041-2045 3,880,000 1,611,400 5,491,400
2046-2048 5,865,000 374,800 6,239,800
$ 10,000,000 $ 7,386,300 $ 17,386,300

Fiscal year Ending June 30 Principal Interest Total
2026 $ 198,000 $ 83,542 $ 281,542
2027 203,000 78,670 281,670
2028 208,000 73,677 281,677
2029 213,000 68,562 281,562
2030 218,000 63,325 281,325
2031-2035 1,173,000 233,506 1,406,506
2036-2040 1,324,000 82,008 1,406,008
$ 3,537,000 $ 683,290 4,220,290

65 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 6 – LONG-TERM LIABILITIES (Continued)
The City has pledged future water system revenues, net of specific operating expenses, to repay the bonds on parity with a pledge that services all parity obligations. The bonds are payable solely from water customer net revenues. For the year ended June 30, 2025, principal and interest paid, and total customer net revenues were $281,281 and $1,648,648, respectively. This debt issue is subject to a reserve requirement in conjunction with parity debt issued by the City. The City is in compliance with the revenue rate covenant requiring net revenues of the water system to be at least equal to 1.2 times the amount necessary to pay principal and interest on the bonds and all other parity bonds.

Lease-Purchase Financing
In Fiscal Year 23-24, the City entered into a lease-purchase agreement for the acquisition of six patrol vehicles for the Police Department. The initial lease liability recorded for this agreement is $655,527. In Fiscal Year 21-22, the City entered into a five-year lease agreement as lessee for the acquisition of a command post vehicle for the Police Department. An initial lease liability of $371,147 was recorded during Fiscal Year 21-22. The annual principal and interest payments for both leases are due on March 28 of each year, with an interest rate of 3.095%.

Future minimum lease payments are as follows:

Lease Liability
In Fiscal Year 2023-24, the City entered into a lease agreement for the property located at 45 Newport Ave, which commenced on September 12, 2023. The lease liability, initially recorded at $530,479, includes the total amount owed over the lease term, reflecting the present value of future payments. Monthly payments are due on the 1st of every month, beginning in January 2024. While the lease does not require direct interest payments to the vendor, the liability is calculated to include an interest component as part of the lease cost. This is consistent with GASB 87, which requires that the interest portion be recognized as part of the lease liability, even if no separate interest is paid to the vendor.

Fiscal Year Ending
June 30, Principal Interest Total
2026 $ 186,755 $ 35,104 $ 221,859
2027 195,406 26,453 221,859
2028 204,481 17,379 221,860
2029 145,272 7,859 153,131
2030 - - -
Totals $ 731,914 $ 86,795 $ 818,709
66 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 6 – LONG-TERM LIABILITIES (Continued)
In Fiscal Year 2024-25, the City entered into a lease for a 2025 Chevy Tahoe for use of Police Command staff, which commenced on April 29, 2025. The lease liability, initially recorded at $65,809, includes the total amount owed over the lease term, reflecting the present value of future payments. Monthly payments are due on the 4th of every month, beginning in May of 2025. While the lease does not require direct interest payments to the vendor, the liability is calculated to include an interest component as part of the lease cost. This is consistent with GASB 87, which requires that the interest portion be recognized as part of the lease liability, even if no separate interest is paid to the vendor.

The lease for the storage is partially funded by both government-wide funds and enterprise funds. The lease for the vehicle is funded by government-wide funds.

Future minimum lease payments are as follows:

Government-wide funded:

Enterprise funded:

Fiscal Year Ending
June 30, Principal Interest Total
2026 $ 111,979 $ 9,066 $ 121,045
2027 115,024 6,372 121,396
2028 118,162 3,514 121,676
2029 75,399 706 76,105
2030 13,323 44 13,367
Totals $ 433,887 $ 19,702 $ 453,589
June 30, Principal Interest Total
2026 $ 14,139 $ 1,243 $ 15,382
2027 14,563 869 15,432
2028 15,000 473 15,473
2029 8,880 83 8,963
2030 -
Totals $ 52,582 $ 2,668 $ 55,250
67 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 6 – LONG-TERM LIABILITIES (Continued)
Subscriptions Liability
In fiscal year 24-25, the City entered into several subscription agreements with terms ranging from two to three years. Initial subscription liabilities of $154,277 were recorded and as of June 30, 2025 the value of the subscription liability is $93,851. Payments vary and have a nominal rate of interest. The value of the right to use assets as of June 30, 2025 is $707,073 with accumulated amortization of $521,302.

Future payments are as follows:

Fiscal Year Ending
June 30, Principal Interest Total
2026 $ 60,426 $ - $ 60,426
2027 33,425 - 33,425
Totals $ 93,851 $ - $ 93,851
68 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 7 – PENSION PLANS
A. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (Police and Fire) or Miscellaneous Employee Pension Plans (Plans), cost-sharing multiple employer defined benefit plans administered by the California Public Employees’ Retirement System (CalPERS).

Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 69 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 7 – PENSION PLANS (Continued)
A. General Information about the Pension Plans (Continued) The Plans’ provisions and benefits in effect on June 30, 2025, are summarized as follows:

Prior to On or after
Hire Date January 1, 2013 January 1, 2013
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-63 52-67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 8.00% 7.75%
Required employer contribution rates 14.13% + $756,010 7.87% + $11,535 Prior to On or after
Hire Date January 1, 2013 January 1, 2013
Benefit formula 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50-57
Monthly benefits, as a % of eligible compensation 3.00% 2.0% to 2.7% Required employee contribution rates 12.00% 13.75%
Required employer contribution rates 24.33% + $585,922 13.76% + $15,400 Prior to On or after
Hire Date January 1, 2013 January 1, 2013
Benefit formula 1/2% @ 55 2.0% @ 55
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 50-55
Monthly benefits, as a % of eligible compensation 1.783% to 2.5% 1.426% to 2.0% Required employee contribution rates 7.00% N/A
Required employer contribution rates $ 42,452 N/A
Miscellaneous
Safety-Police
Safety-Fire
70 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 7 – PENSION PLANS (Continued)
A. General Information about the Pension Plans (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2025, the contributions recognized as part of pension expense for each Plan were as follows:

On June 30, 2025, the City reported net pension liabilities for its proportionate shares of the net position liability of each Plan as follows:

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all Pension Plan participants, actuarially determined.

Miscellaneous Safety
Contributions-employer $ 1,001,485 $ 935,855
Proportionate Share of
Net Pension Liability
Miscellaneous $ 9,299,363
Safety 7,263,038
Total $ 16,562,401
71 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
On June 30, 2025, the City’s proportionate share of the net pension liability for each Plan as of June 30, 2024, and June 30, 2025, was as follows:

For the year ended June 30, 2025, the City recognized pension expense (income) of $1,740,1521,397,591 for the Miscellaneous Plan and $1,505,457for the Safety Plan. Pension expense (income) represents the change in the net pension liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method, and plan benefits. On June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pension as follows:

Miscellaneous Safety
Proportion-June 30, 2024 0.18746% 0.09971%
Proportion-June 30, 2025 0.19227% 0.09962%
Change-Increase (Decrease) 0.00481% -0.00009%
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Changes in assumptions $ 239,013 $ -
Differences between expected and actual experience 804,015 31,372 Net difference between projected and actual earnings on retirement plan investments 535,353
Changes in proportion and differences between City
contributions and proportionate share of contributions 94,977 37,303 Adjustment due to differences in proportion 137,212
City contributions subsequent to the measurement date 1,141,498 $ 2,814,856 $ 205,887
Miscellaneous
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Changes in assumptions $ 178,946 $ -
Differences between expected and actual experience 592,728 19,272 Net difference between projected and actual earnings on retirement plan investments 351,062
Changes in proportion and differences between City
contributions and proportionate share of contributions 35,523 104,230 Adjustment due to differences in proportion 143,246
City contributions subsequent to the measurement date 1,107,095 $ 2,408,600 $ 123,502
Safety
72 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Deferred outflows of resources and deferred inflows of resources above represent the unamortized portion of changes to net pension liability to be recognized in future periods in a systematic and rational manner.

Deferred outflows of resources related to pensions resulting from City contributions made subsequent to the measurement date of the net pension liability but before the end of the City’s reporting period of $ 1,141,498 and $ 1,107,095 for the Miscellaneous and Safety Plans, respectively, will be recognized as a reduction of the net pension liability in the year June 30, 2026.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in the pension expenses as follows:

Actuarial Assumptions
The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability using the following actuarial assumptions:

Miscellaneous Safety
2026 $ 460,342 $ 465,375
2027 1,187,017 830,828
2028 3,571 1,920
2029 (183,459) (120,120)
$ 1,467,471 $ 1,178,003
Fiscal year ending June 30, Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Projected Salary Increase
Investment Rate of Return
Mortality (1)
(1) The mortality table used was developed based on CalPERs' specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Socity of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

Data for all Funds
Miscellaneous and Safety
June 30, 2023
June 30, 2024
Entry-Age Normal Cost Method

6.90%

2.30%
Varies by Entry Age and Service

6.90%
Derived using CalPERS' Membership
73 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investment was applied to all periods of projected benefit payments to determine the total pension liability.

Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS considered both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11 + years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
74 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The table below reflects the long-term expected real rate of return by asset class.

Asset Class (1)
Assumed
Asset
Allocation
Real Return
Years 1-10 (1,2)
Global equity - cap-weighted 30.0% 4.45%
Global equity - non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management study. 75 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 7 – PENSION PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in Discount Rate The following represents the City’s proportionate share of the net pension liability calculated using the discount rate of 6.90 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent) or 1- percentage point higher (7.90 percent) than the current rate:

Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

C. Payable to the Pension Plan
On June 30, 2025, the City had no amount outstanding for contributions to the pension plan required for the fiscal year ended June 30, 2025.

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability $ 13,824,681 $ 11,569,222
Current Discount Rate 6.90% 6.90%
Net Pension Liability $ 9,299,363 $ 7,263,038
1% Increase 7.90% 7.90%
Net Pension Liability $ 5,574,361 $ 3,741,185
76 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 8 – LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE A. UDescription of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Grover Beach is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Primary USelf-Insurance Programs of the Authority
Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risksharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $3 million for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $3 million to $30 million for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $30 million to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $50 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website:
https://cjpia.org/coverage/risk-sharing-pools/.

Workers’ Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. 77 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 8 – LIABILITY, WORKERS’ COMPENSATION, AND PURCHASED INSURANCE (Continued) A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $1 million for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $1 million to $2 million for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $2 million to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For FY 2024-25 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

C. UPurchased Insurance
Property Insurance
The City of Grover Beach participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Grover Beach property is currently insured according to a schedule of covered property submitted by the City of Grover Beach to the Authority. City of Grover Beach property currently has all-risk property insurance protection in the amount of $50 million. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

D. UAdequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in FY 2024-25.

NOTE 9 – CONTINGENCIES AND COMMITMENTS
The City is involved in various litigations. In the opinion of management and legal counsel, the disposition of all litigations pending will not have a material effect on the City’s financial statements.

The City has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material. The City had construction contracts for $6.9 million as of June 30, 2025. 78 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 10 – REVENUE LIMITATIONS IMPOSED BY CALIFORNIA PROPOSITION 218 Proposition 218, which was approved by the voters in November 1996, will regulate the City’s ability to impose, increase, and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future years by the voters.

NOTE 11 – JOINT OPERATING AGREEMENTS
Wastewater operations. The City does not own and operate a separate wastewater treatment plant facility. Pursuant to a purchase agreement with the South San Luis Obispo County Sanitation District, the City’s waste is transported through City-owned, and City maintained lines for processing at the District’s plant. The City purchased up to 30 percent of the District’s treatment plant capacity. The cost of this purchased capacity is recorded as a capital asset of the wastewater enterprise, and this cost is being amortized to expense over 20 years using the straight-line method. The City is also obligated to pay to the District the costs of maintaining and operating the District’s plant, based upon the number of City’s customers, times certain rates, and such operating costs are to be paid monthly by the City. The City records such operating costs as expenses in its wastewater enterprise.

Water operations. The San Luis Obispo County Flood Control and Water Conservation District, a countywide agency, issued voter-approved general obligation bonds for the purpose of building Lopez Dam, a storage reservoir, water treatment plant, and other facilities to provide a primary municipal water supply.

The City has entered into a water supply agreement wherein the City has agreed to pay annually, regardless of water deliveries, a prorated percentage of certain costs. In addition, the City also pays the District a prorated share of operating, maintenance, pumping, and related operating costs which expensed in the City’s water enterprise fund.

NOTE 12 – FIVE CITIES FIRE AUTHORITY
The City of Grover Beach is a member of the Five Cities Fire Authority (FCFA), a joint powers authority between the Cities of Arroyo Grande, Grover Beach, and the Oceano Community Services District. FCFA was formed on July 9, 2010, for the purpose of providing a more efficient fire protection service within the City limits of Arroyo Grande and Grover Beach, as well as the towns of Oceano and Halcyon which are unincorporated areas of San Luis Obispo County. Each member contributes its pro rate share of operating costs to FCFA based on a funding formula, calculated annually. The FCFA governing board consists of one member appointed from each participating entity and shall be appointed as determined by the respective City Council or Board of Directors. All financial decisions are made by this three-member board. The City of Grover Beach contributed $2,907,728 to FCFA during the fiscal year ended June 30, 2025, for fire protection service. Separate financial statements may be obtained from the Five Cities Fire Authority at 140 Traffic Way in Arroyo Grande, California.
79 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 13 – SUCCESSOR AGENCY
UBonds Payable
On December 8, 2005, the former Improvement Agency issued $4,390,000 of 2005 tax allocation bonds to refund the outstanding balance of the 2001 tax allocation notes and pay the costs of redevelopment activities within the Agency’s Improvement Project. The bonds are secured by a pledge of the Agency’s tax increment revenues excluding to be paid to other taxing authorities, pursuant to pass-through agreements, bear interest from 3.25 to 5.00 percent, and mature on August 1, 2035. On February 1, 2014, the Successor Agency assumed the tax allocation bonds previously held by the former Improvement Agency. As of June 30, 2025, the principal balance was $2,365,000.

The future minimum payment obligations for the bonds payable on June 30, 2025, are presented on the following page:

Loan Payable
On February 1, 2015, the Successor Agency assumed loans due to the City of Grover Beach previously held by the former Improvement Agency. There is no formal payment schedule. Loan payments are made when monies become available, with an annual interest rate of 0.5%. The amount due to the City of Grover Beach as of June 30, 2025, was $29,869.

UChanges in Long-Term Liabilities
Long term liability activity for the fiscal year ended June 30, 2025, are as follows:

Fiscal year Ending June 30 Principal Interest Total
2026 $ 165,000 $ 122,250 $ 287,250
2027 175,000 114,125 289,125
2028 185,000 105,625 290,625
2029 195,000 96,625 291,625
2030 200,000 87,125 287,125
2031-2035 1,175,000 277,625 1,452,625
2036 270,000 26,750 296,750
$ 2,365,000 $ 830,125 $ 3,195,125

Balance Balance Due Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Tax allocation bonds $ 2,525,000 $ 160,000 $ 2,365,000 $ 165,000 Loan payable 29,869 29,869
$ 2,554,869 $ - $ 160,000 $ 2,394,869 $ 165,000
80 CITY OF GROVER BEACH
Notes to Basic Financial Statements
June 30, 2025
NOTE 14 – DEFERRED INFLOWS OF RESOURCES
On June 30, 2025, deferred inflows of resources, reported in the governmental fund financial statements, consisted of the following:

NOTE 15 – SUBSEQUENT EVENTS
Events subsequent to June 30, 2025 have been evaluated through February 17, 2026 which isthe date the financial statements were available to be issued. Management did not identify any subsequent events requiring disclosure.

Home Grant
Fund Total
Unavailable Revenue $ 333,975 $ 333,975
$ 333,975 $ 333,975

81 CITY OF GROVER BEACH
Required Supplemental Information
June 30, 2025
Budgetary Information
Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the efficient and effective use of the City’s economic resources, as well as establishing that the highest priority objectives are accomplished.

The Annual budget serves the fiscal period July 1 to June 30 and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of effective financial planning.

The City prepares a two-year budget. The City Council adopts governmental fund budgets consistent with generally accepted accounting principles as legally required.

The City Council generally reauthorizes appropriations for continuing projects and activities. The City Council has the legal authority to amend the budget of any fund, at any time during the fiscal year. The budgetary legal level of control (the level on which expenditures may not legally exceed appropriations) is generally at the fund level. Budgeted expenditures may be reallocated within a fund by the City Manager, and within a department program by the department director, but any inter-fund transfers or reallocation must be approved by resolution of the City Council.

The City is not required to adopt an annual budget for the Street Improvement Debt Service Fund as part of its budgetary process. Historically, the budget comparison for the Debt Service Fund has not been presented in the financial statements. Accordingly, the City does not include a budget-to-actual comparison for the Street Improvement Debt Service Fund in accordance with the Governmental Accounting Standards Board (GASB) standards.

This is consistent with the City's practice and reflects the City's unique financial structure and operational requirements.
83 CITY OF GROVER BEACH

GENERAL FUND

BUDGET TO ACTUAL
For the Fiscal Year Ended June 30, 2025
Original Final Actual Amounts
Variance with Final
Budget Positive
(Negative)
Revenues:

Taxes 15,859,000 15,859,000 15,238,724 (620,276)
Licenses, permits, and fees 306,000 306,000 542,467 236,467 Intergovernmental 70,000 70,000 3,879,052 3,809,052
Charges for services 963,000 963,000 1,164,522 201,522
Fines and forfeitures 20,715 20,715 30,509 9,794
Use of money and property 430,000 430,000 378,731 (51,269) Other - -
Total revenues 17,648,715 17,648,715 21,234,005 3,585,290 Expenditures:

General government 7,352,632 7,419,509 8,687,090 (1,267,581) Public safety 7,175,993 7,199,493 7,117,252 82,241
Community development 1,275,685 1,275,685 705,768 569,917 Public works 1,556,801 1,877,592 1,583,733 293,859
Capital outlay 600,000 600,000 492,405 107,595
Debt service:

Principal 282,641 282,641 203,557 79,084
Interest 13,978 13,978 47,223 (33,245)
Total expenditures 18,257,730 18,668,899 18,837,028 (168,129) Excess of revenues over (under) expenditures
(609,015) (1,020,184) 2,396,977 3,753,419
Other Financing Sources (Uses):

Subscription financing 220,085 220,085
Transfers in 831,305 831,305 737,817 (93,488)
Transfers out (391,020) (391,020) (5,135,645) (4,744,625) Total other financing sources (uses) 440,285 440,285 (4,177,743) (4,618,028) Net change in fund balances (168,730) (579,899) (1,780,766) (864,609) Fund balances - July 1 8,805,605 8,805,605 8,805,605
Fund balances - June 30 8,636,875 8,225,706 7,024,839 (864,609) Budgeted Amounts
84 CITY OF GROVER BEACH
Street Rehabiliation and Repair Fund

BUDGET TO ACTUAL
For the Fiscal Year Ended June 30, 2025
Original Final Actual Amounts
Variance with Final
Budget Positive
(Negative)
Revenues:

Charges for services -
Use of money and property 60,000 60,000 129,408 69,408
Intergovernmental 18,000 18,000
Total revenues 60,000 60,000 147,408 87,408
Expenditures:

Public works 280,127 280,127 600,079 (319,952)
Capital outlay 860,000 860,000 860,000
Total expenditures 1,140,127 1,140,127 600,079 540,048
Excess of revenues over (under) expenditures
(1,080,127) (1,080,127) (452,671) (452,640)
Other Financing Sources (Uses):

Transfers in 40,000 40,000 40,000 -
Transfers out - -
Total other financing sources (uses) 40,000 40,000 40,000 - Net change in fund balances (1,040,127) (1,040,127) (412,671) (452,640) Fund balances - July 1 2,425,486 2,380,486 3,665,166
Fund balances - June 30 1,385,359 1,340,359 3,252,495 (452,640) Budgeted Amounts
85 CITY OF GROVER BEACH
Capital Projects Fund

BUDGET TO ACTUAL
For the Fiscal Year Ended June 30, 2025
Original Final Actual Amounts
Variance with Final
Budget Positive
(Negative)
Revenues:

Charges for services $ 47,824 $ 47,824
Use of money and property -
Intergovernmental 2,200,000 2,200,000 (2,200,000)
Total revenues 2,200,000 2,200,000 47,824 (2,152,176)
Expenditures:

Public works -
Capital outlay 6,019,000 6,019,000 7,811,913 (1,792,913) Total expenditures 6,019,000 6,019,000 7,811,913 (1,792,913) Excess of revenues over (under) expenditures
(3,819,000) (3,819,000) (7,764,089) (359,263)
Other Financing Sources (Uses):

Transfers in 3,819,000 3,819,000 8,317,579 4,498,579
Total other financing sources (uses) 3,819,000 3,819,000 8,317,579 4,498,579 Net change in fund balances - - 553,490 4,139,316
Fund balances - July 1 2,425,486 2,380,486 (99,300)
Fund balances - June 30 $ 2,425,486 $ 2,380,486 $ 454,190 $ 4,139,316 Budgeted Amounts
86 CITY OF GROVER BEACH
Schedule of Proportionate Share of Net Pension Liability Miscellaneous Plan
Last 10 Years
For the year ended June 30, 2025
Fiscal Year 2015-16 2016-17 2017-18 2018-19
Measurement Period 2014-15 2015-16 2016-17 2017-18
Proportion of the net pension liability 0.177090% 0.171680% 0.172753% 0.175949% Proportionate share of the net pension liability $ 4,740,779 $ 5,964,116 $ 6,810,002 $ 6,631,010 Covered payroll $ 2,352,410 $ 2,544,097 $ 2,823,759 $ 3,007,940 Proportionate share of the net pension
liability as a percentage of covered payroll 201.53% 234.43% 241.17% 220.45% Plan fiduciary net position as a percentage
of the total pension liability 79.89% 75.87% 75.39% 77.69% Notes to schedule
Changes in assumptions: (See below from Misc Plan)

4. In 2015, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of

3. In 2016, the discount rate was changed from 7.5% (net of administrative expense) to 7.65% to correct for an adjustment to

2. In 2017, as part of the Asset Liability Management review cycle, the discount rate was changed from 7.65% to 7.15%.

1. In 2018, demographic assumptions and the inflation rate were changed in accordance to the CalPERS Experience Study and

1. In 2022, the discount rate was changed from 7.15% to 6.90%. 87 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

0.177775% 0.180240% 0.240370% 0.188350% 0.187460% 0.192270% $ 7,117,875 $ 7,602,638 $ 4,564,134 $ 8,813,149 $ 9,373,931 $ 9,299,363 $ 3,077,837 $ 3,138,281 $ 3,164,383 $ 3,327,458 $ 3,618,689 $ 3,570,572 231.26% 242.25% 144.23% 264.86% 259.04% 260.44%

77.73% 77.71% 90.49% 78.19% 78.19% 70.78%
88 CITY OF GROVER BEACH
Schedule of Proportionate Share of Net Pension Liability Last 10 Years
For the year ended June 30, 2025
Fiscal Year 2015-16 2016-17 2017-18 2018-19
Measurement Period 2014-15 2015-16 2016-17 2017-18
Proportion of the net pension liability 0.089290% 0.893500% 0.088890% 0.090830% Proportionate share of the net pension liability $ 3,611,809 $ 4,627,579 $ 5,311,534 $ 5,329,358 Covered payroll $ 1,193,228 $ 1,400,666 $ 1,606,728 $ 1,611,098 Proportionate share of the net pension
liability as a percentage of covered payroll 302.69% 330.38% 330.58% 330.79% Plan fiduciary net position as a percentage
of the total pension liability 77.27% 72.69% 71.74% 73.39% Notes to Schedule (see updates below)
Changes in assumptions:

4. In 2015, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of

3. In 2016, the discount rate was changed from 7.5% (net of administrative expense) to 7.65% to correct for an adjustment to

2. In 2017, as part of the Asset Liability Management review cycle, the discount rate was changed from 7.65% to 7.15%.

1. In 2018, demographic assumptions and the inflation rate were changed in accordance to the CalPERS Experience Study and 89 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

0.092060% 0.094170% 0.085870% 0.098620% 0.099710% 0.099620% $ 5,746,863 $ 6,274,015 $ 3,013,525 $ 6,776,709 $ 7,453,271 $ 7,263,038 $ 1,724,360 $ 1,820,004 $ 2,210,811 $ 2,129,749 $ 2,303,148 $ 2,720,322 333.28% 344.73% 136.31% 318.19% 323.61% 266.99%

73.37% 73.12% 86.61% 75.53% 75.53% 75.77%
90 CITY OF GROVER BEACH

SCHEDULE OF CONTRIBUTIONS
Miscellaneous Plan
Last 10 Years
For the year ended June 30, 2025
Fiscal Year 2016 2017 2018 2019 2020
Contractually required contribution (actuarially determined) $ 502,704 $ 564,258 $ 640,602 $ 739,558 $ 831,877 Contribution in relation to the actuarially determined contributions $ 502,704 $ 564,258 $ 640,602 $ 739,558 $ 831,877 Contribution deficiency (excess) - - - - -
Covered payroll $ 2,201,206 $ 2,352,410 $ 2,544,097 $ 2,823,759 $ 3,007,940 Contributions as a percentage of covered payroll 22.84% 23.99% 25.18% 26.19% 27.66% Notes to Schedule - Actuarially Determined Contribution Assumptions * Valuation Date: 6/30/2023
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method/Period
Remaining Amortization Periods Differs by employer rate plan Asset Valuation Method Market value of asset
Inflation 2.30%
Salary Increases Varies by category, entry age and service Discount rate ** 6.80%
Mortality
Varies by date established and source. May be level
dollar or level percent of pay and may include direct
rate smoothing.

Derived using CalPERS Membership Data for all
Funds. The post-retirement mortality rates include
15 years of projected on-going mortality
improvement using 80% of the Society of Actuaries
91 2021 2022 2023 2024 2025
$ 827,979 $ 921,270 $ 1,008,890 $ 1,001,485 $ 1,141,498 $ 827,979 $ 921,270 $ 1,008,890 $ 1,001,485 $ 1,141,498 - - - -
$ 3,077,837 $ 3,138,281 $ 3,164,383 $ 3,327,458 $ 3,618,689

26.90% 29.36% 31.88% 30.10% 31.54%
92 CITY OF GROVER BEACH

SCHEDULE OF CONTRIBUTIONS
Safety Plan
Last 10 Years
For the year ended June 30, 2025
Fiscal Year 2016 2017 2018 2019 2020
Contractually required contribution (actuarially determined) 426,742 477,038 568,347 569,000 676,869 Contribution in relation to the actuarially determined contributions 426,742 477,038 568,347 569,000 676,869 Contribution deficiency (excess) - - - - -
Covered payroll $ 1,308,085 $ 1,193,228 $ 1,400,666 $ 1,606,728 $ 1,611,098 Contributions as a percentage of covered payroll 33% 40% 41% 35% 42% Notes to Schedule - Actuarially Determined Contribution Assumptions * Valuation Date: 6/30/2023
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method/Period
Remaining Amortization Periods Differs by employer rate plan Asset Valuation Method Market value of asset
Inflation 2.30%
Salary Increases Varies by category, entry age and service Discount rate ** 6.80%
Mortality
Derived using CalPERS Membership Data for all Funds. The post-retirement mortality rates include 15 years of projected on-going mortality
improvement using 80% of the Society of Actuaries Scale MP2020 Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing. 93 2021 2022 2023 2024 2025
808,253 858,085 898,454 935,855 1,107,095
1,308,253 858,085 898,454 935,855 1,107,095
(500,000) - - - -
$ 1,724,360 $ 1,820,004 $ 2,210,811 $ 2,129,749 $ 2,303,148 76% 47% 41% 44% 48%
94 NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Special revenue funds are used to account for revenues that are restricted by law or administrative actions to expenditures for specified purposes. Nonmajor special revenue funds used by the City are listed below:

Gas Tax - These funds are restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs of the public street system. Income is derived from state excise taxes on fuel and is allocated to the City in accordance with Street and Highway Code Sections 2103-2108.

Gas Tax Road Maintenance and Rehabilitation Account - These funds are used to account for the receipt and expenditure of Senate Bill 1, an additional gas tax, that enable cities and counties to address significant maintenance, rehabilitation and safety needs on the local streets and road system.

Public Safety Grants – The purpose of this fund is to receive and track all Police Department State grant revenue and expenditures in accordance with prescribed regulations. Revenue for this fund is comprised of funds from the Citizens Option for Public Safety Program (COPs). Under the standard grant program allocation, the City is eligible to receive a minimum amount of $100,000 annually, with additional proportionate share based on population estimates determined by the California Department of Finance.

Byrne Discretionary Community Project – The purpose of this fund is to receive and track all funding related to Byrne Grant provided to the City of Grover Beach by the Department of Justice for public safety equipment.

Parks Construction – This fund receives Park-In-Lieu fees from developers and is restricted to the acquisition, construction, major improvements, and rehabilitation.

Transportation Impact Fees – This fund accounts for fees generated by development for the construction of transportation improvements.

Law Enforcement Impact Fees – This fund accounts for fees generated by development. These funds may be used for law enforcement improvements related to expansion.

Administrative Impact Fees – This fund accounts for fees generated by development. These funds may be used for administrative improvements related to expansion.

Fire Development Impact Fees – This fund accounts for fees generated by development. These funds may be used for fire improvements related to expansion.

Storm Water Impact Fees – This fund accounts for fees generated by development. These funds may be used for storm water related expansion.

Wastewater Impact Fees – This fund accounts for fees generated by development. These funds may be used for wastewater related expansion.

Parks Facilities Impact Fees – This fund accounts for fees generated by development. These funds may be used for parks facilities related expansion.
95 Recreation Facilities Impact Fees – This fund accounts for fees generated by development. These funds may be used for recreation related expansion.

Water Development Impact Fees – This fund accounts for fees generated by development. These funds may be used for water related expansion.

State Mandated ADA Fund – This fund accounts for the State Mandated Disability and Education Fee (SB 1186 Steinberg). Cities are required to collect four dollars from every business license or equivalent instrument. Cities are required to transmit thirty percent of the fees to the State on a quarterly basis for deposit in the Disability Access and Education Revolving Fund. Cities keep seventy percent of the fees to be used for ADA Certified Specialists Program.

Subsidized Senior Transportation – This fund accounts for expenditures related to the Senior Transportation program funded by Local Transportation Funds.

Local Transportation – This fund accounts for apportioned revenue from the state and is restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs associated with the public street system, as well as transit-related costs. Income derived from state and federal grants generally administered by SLOCOG and Caltrans Local Assistance and include State Highway Account Urban and Regional (USHA and RSHA) Funds.

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

Home Grant – The Home Investment Partnership Program (HOME) funds can be used for First Time Homebuyer Program, First Time Homebuyer Project, Owner Occupied Rehabilitation Program, Rental Rehabilitation, Rental New Construction Project, and Tenant-Based Rental Assistance Programs.

CAPITAL PROJECTS FUND
Capital projects funds are restricted, committed or assigned for capital outlay and include:

Underground Utilities – This fund accounts for underground utility developer fees restricted to the placement of utility lines underground in accordance with City Council priorities set by resolution. 96 CITY OF GROVER BEACH

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2025
Gas Tax Gas Tax RMRA
Public Safety
Grants
Byrne
Discretionary
Community
Project
Park
Construction
ASSETS
Cash and investments $ 160,810 $ 344,184 $ 220,964 $ - $ 146,447 Accounts receivable 94,721
Loans receivable
Interest receivable 666 4,622 1,305 2,276
Total assets $ 161,476 $ 443,527 $ 222,269 $ - $ 148,723

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable $ 30,649 $ - $ - $ - $ -
Accrued wages -
Due to other funds
Total liabilities 30,649 - - - -
Deferred Inflows of Resources:

Unavailable revenue
Total deferred inflows of resources - - - - -
Fund Balances:

Restricted 130,827 443,527 222,269 - 148,723
Unassigned
Total fund balances 130,827 443,527 222,269 - 148,723
Total liabilities, deferred inflows of resources, and
fund balances $ 161,476 $ 443,527 $ 222,269 $ - $ 148,723 Special Revenue Funds
97 Transportation
Impact Fees
Law
Enforcement
Impact Fees
Administrative
Impact Fees
Fire
Development
Impact Fees
Storm Water
Impact Fees
Wastewater
Impact Fees
Parks Facilities
Impact Fees
$ 317,634 $ 29,518 $ 39,298 $ 21,629 $ 30,370 $ 410,017 $ 192,448

1,851 180 245 134 1,113 2,313 1,590
$ 319,485 $ 29,698 $ 39,543 $ 21,763 $ 31,483 $ 412,330 $ 194,038 $ - $ - $ - $ - $ - $ - $ -
- - - - - - -

- - - - - - -
319,485 29,698 39,543 21,763 31,483 412,330 194,038
319,485 29,698 39,543 21,763 31,483 412,330 194,038
$ 319,485 $ 29,698 $ 39,543 $ 21,763 $ 31,483 $ 412,330 $ 194,038 Special Revenue Funds
98 CITY OF GROVER BEACH

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
June 30, 2025
Recreation
Facilities Impact
Fees
Water
Development
Impact Fees
State Mandated
ADA
Subsidized
Senior
Transportation
ASSETS
Cash and investments $ 90,087 $ 146,097 $ 15,747 $ 24,181 Accounts receivable
Loans receivable
Interest receivable 688 993 142
Total assets $ 90,775 $ 147,090 $ 15,747 $ 24,323

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND

FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ 714 $ -
Accrued wages
Due to other funds
Total liabilities - - 714 -
Deferred Inflows of Resources:

Unavailable revenue
Total deferred inflows of resources - - - -
Fund Balances:

Restricted 90,775 147,090 15,033 24,323
Unassigned
Total fund balances 90,775 147,090 15,033 24,323
Total liabilities, deferred inflows of resources, and
fund balances $ 90,775 $ 147,090 $ 15,747 $ 24,323
Special Revenue Funds
99 Capital
Projects Fund
Local
Transportation
CDBG Non
Entitlement
Home Grant
Fund
Underground
Utilities Total
$ 501,685 $ 122,500 $ 244,866 $ 3,058,482
450,935 545,656
333,975 333,975
13,249 1,422 32,789
$ 514,934 $ 450,935 $ 456,475 $ 246,288 $ 3,970,902
$ - $ - $ - $ 31,363
-
384,937 384,937
- 384,937 - - 416,300
333,975 333,975
- - 333,975 - 333,975
514,934 65,998 122,500 246,288 3,220,627
-
514,934 65,998 122,500 246,288 3,220,627
$ 514,934 $ 450,935 $ 456,475 $ 246,288 $ 3,970,902
Special Revenue Funds
100

CITY OF GROVER BEACH

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2025
Gas Tax Gas Tax RMRA
Public Safety
Grants
Byrne
Discretionary
Community
Project
Park
Construction
Transportation
Impact Fees
Revenues:

Intergovernmental $ 374,585 $ 381,270 $ 194,663 $ 267,700 $ - $ - Charges for services 206,325 123,452
Use of money and property 3,856 14,306 5,618 8,491 7,217 Total revenues 378,441 395,576 200,281 267,700 214,816 130,669 Expenditures:

General government 84,926
Public safety 54,107
Community development
Public works 267,574 607
Capital outlay 72,090 182,774
Total expenditures 267,574 - 126,197 267,700 - 607
Excess of revenues over (under) expenditures
110,867 395,576 74,084 - 214,816 130,062
Other Financing Sources (Uses):

Transfers out (100,000) (299,999) (242,196)
Total other financing sources (uses) (100,000) (299,999) - - (242,196) - Net change in fund balances 10,867 95,577 74,084 - (27,380) 130,062 Fund balances - July 1 119,960 347,950 148,185 - 176,103 189,423 Fund balances - June 30 $ 130,827 $ 443,527 $ 222,269 $ - $ 148,723 $ 319,485 Special Revenue Funds
101
Law
Enforcement
Impact Fees
Administrative
Impact Fees
Fire
Development
Impact Fees
Storm Water
Impact Fees
Wastewater
Impact Fees
Parks Facilities
Impact Fees
Recreation
Facilities
Impact Fees
$ - $ - $ - $ - $ - $ - $ -
9,470 8,894 11,809 24,343 103,133 169,590 30,350
717 991 480 4,706 9,295 5,580 2,574
10,187 9,885 12,289 29,049 112,428 175,170 32,924
607 607
607

607 607 607

- 607 607 607 607 607 607
10,187 9,278 11,682 28,442 111,821 174,563 32,317
(160,500) (77,325)
- - - (160,500) - (77,325) -
10,187 9,278 11,682 (132,058) 111,821 97,238 32,317
19,511 30,265 10,081 163,541 300,509 96,800 58,458
$ 29,698 $ 39,543 $ 21,763 $ 31,483 $ 412,330 $ 194,038 $ 90,775 Special Revenue Funds
102

CITY OF GROVER BEACH

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2025
Water
Development
Impact Fees
State
Mandated
ADA
Subsidized Senior
Transportation
Local
Transportation
CDBG Non
Entitlement
Home Grant
Fund
Revenues:

Intergovernmental $ - $ - $ - $ 283,822 $ 852,413 $ -
Charges for services 107,753 5,414
Use of money and property 3,052 627 56,478
Total revenues 110,805 5,414 627 340,300 852,413 -
Expenditures:

General government
Public safety
Community development 330,794
Public works 607 80,194
Capital outlay
Total expenditures 607 - - 80,194 330,794 -
Excess of revenues over (under) expenditures
110,198 5,414 627 260,106 521,619 -
Other Financing Sources (Uses):

Transfers out (1,800,000) (489,014)
Total other financing sources (uses) - - - (1,800,000) (489,014) - Net change in fund balances 110,198 5,414 627 (1,539,894) 32,605 - Fund balances - July 1 36,892 9,619 23,696 2,054,828 33,393 122,500 Fund balances - June 30 $ 147,090 $ 15,033 $ 24,323 $ 514,934 $ 65,998 $ 122,500 Special Revenue Funds
103
Capital
Projects Fund
Underground
Utilities Totals
$ - $ 2,354,453
800,533
6,323 130,311
6,323 3,285,297
86,140
54,714
330,794
350,803
254,864
- 1,077,315
6,323 2,207,982
(3,169,034)
- (3,169,034)
6,323 (961,052)
239,965 4,181,679
$ 246,288 $ 3,220,627
104

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

GAS TAX
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Intergovernmental $ 384,249 $ 374,585 $ (9,664)
Use of money and property 3,000 3,855 855
Total revenues 387,249 378,440 (8,809)
Expenditures:

Public works 288,000 267,574 20,426
Total expenditures 288,000 267,574 20,426
Excess of revenues over (under) expenditures 99,249 110,866 11,617 Other Financing Sources (Uses):

Long-term debt issued -
Transfers in -
Transfers out (78,000) (100,000) (22,000)
Total other financing sources (uses) (78,000) (100,000) (22,000) Net change in fund balance $ 21,249 10,866 $ (10,383)
Fund balance - July 1 119,960
Fund balance - June 30 $ 130,826
105

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

GAS TAX RMRA
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Intergovernmental $ 300,000 $ 381,270 $ 81,270
Use of money and property 2,500 14,306 11,806
Total revenues 302,500 395,576 93,076
Other Financing Sources (Uses):

Transfers out (299,000) (299,999)
Total other financing sources (uses) (299,000) (299,999) Net change in fund balance $ 3,500 95,577 $ 93,076
Fund balance - July 1 347,950
Fund balance - June 30 $ 443,527
106

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

PUBLIC SAFETY GRANTS
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Intergovernmental $ 185,000 $ 194,663 $ 9,663
Use of money and property 5,000 5,618 618
Total revenues 190,000 200,281 10,281
Expenditures:

Public safety 131,500 54,107 77,393
Capital outlay 15,000 72,090 (57,090)
Total expenditures 146,500 126,197 20,303
Net change in fund balance $ 43,500 74,084 $ 30,584
Fund balance - July 1 148,185
Fund balance - June 30 $ 222,269
107

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

BYRNE DISCRETIONARY GRANT
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Intergovernmental $ - $ 267,700 $ 267,700
Total revenues - 267,700 267,700
Expenditures:

General Government - 84,926 (84,926)
Capital outlay - 182,774 (182,774)
Total expenditures - 267,700 (267,700)
Excess of revenues over (under) expenditures - 0 0
Net change in fund balance $ - 0 $ 0
Fund balance - July 1 -
Fund balance - June 30 $ 0
108

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

PARK CONSTRUCTION
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 11,000 $ 206,325 $ 195,325
Use of money and property 800 8,491 7,691
Total revenues 11,800 214,816 203,016
Expenditures:

Excess of revenues over (under) expenditures 11,800 214,816 203,016 Other Financing Sources (Uses):

Transfers out - (242,196) (242,196)
Total other financing sources (uses) - (242,196)
Net change in fund balance $ 11,800 (27,380) $ (39,180) Fund balance - July 1 176,103
Fund balance - June 30 $ 148,723
109

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

TRANSPORTATION IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 16,000 $ 123,452 $ 107,452
Use of money and property 500 7,217 6,717
Total revenues 16,500 130,669 114,169
Expenditures:

Public works - 607 (607)
Total expenditures - 607 (607)
Excess of revenues over (under) expenditures 16,500 130,062 113,562 Net change in fund balance $ 16,500 130,062 $ 113,562
Fund balance - July 1 189,423
Fund balance - June 30 $ 319,485
110

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

LAW ENFORCEMENT IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 1,200 $ 9,470 $ 8,270
Use of money and property 200 717 517
Total revenues 1,400 10,187 8,787
Expenditures:

Total expenditures - - -
Net change in fund balance $ 1,400 10,187 $ 8,787
Fund balance - July 1 19,511
Fund balance - June 30 $ 29,698
111

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

ADMINISTRATIVE IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 1,500 $ 8,894 $ 7,394
Use of money and property 400 991 591
Total revenues 1,900 9,885 7,985
Expenditures:

General government - 607 (607)
Total expenditures - 607 (607)
Net change in fund balance $ 1,900 9,278 $ 7,378
Fund balance - July 1 30,265
Fund balance - June 30 $ 39,543
112

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

FIRE DEVELOPMENT IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 1,900 $ 11,809 $ 9,909
Use of money and property 200 480 280
Total revenues 2,100 12,289 10,189
Expenditures:

Public safety - 607 (607)
Total expenditures - 607 (607)
Excess of revenues over (under) expenditures 11,682 11,682 Net change in fund balance $ - 11,682 $ 11,682
Fund balance - July 1 1,081
$ 12,763
Fund balance - June 30
113

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

STORM WATER IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 7,000 $ 24,343 $ 17,343
Use of money and property 2,100 4,706 2,606
Total revenues 9,100 29,049 19,949
Expenditures:

Public works - 607 (607)
Total expenditures - 607 (607)
Excess of revenues over (under) expenditures 9,100 28,442 19,342 Other Financing Sources (Uses):

Transfers out (160,500) (160,500)
Total other financing sources (uses) - (160,500) (160,500) Net change in fund balance $ 9,100 (132,058) $ (141,158) Fund balance - July 1 163,541
Fund balance - June 30 $ 31,483
114

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

WASTEWATER IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 22,000 $ 103,133 $ 81,133
Use of money and property 4,200 9,295 5,095
Total revenues 26,200 112,428 86,228
Expenditures:

Public works - 607 (607)
Total expenditures - 607 (607)
Excess of revenues over (under) expenditures 26,200 111,821 85,621 Other Financing Sources (Uses):

Transfers out (85,000) - 85,000
Total other financing sources (uses) (85,000) - 85,000
Net change in fund balance $ (58,800) 111,821 $ 170,621 Fund balance - July 1 300,509
Fund balance - June 30 $ 412,330
115

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

PARKS FACILITIES IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 27,000 $ 169,590 $ 142,590
Use of money and property 5,500 5,580 80
Total revenues 32,500 175,170 142,670
Expenditures:

General government 607 607
Total expenditures - 607 607
Excess of revenues over (under) expenditures 32,500 174,563 (142,063) Other Financing Sources (Uses):

Transfers out - (77,325) (77,325)
Total other financing sources (uses) - (77,325) (77,325) Net change in fund balance $ 32,500 97,238 $ (219,388)
Fund balance - July 1 96,800
Fund balance - June 30 $ 194,038
116

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

RECREATION FACILITIES IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 5,000 $ 30,350 $ 25,350
Use of money and property 1,600 2,574 974
Total revenues 6,600 32,924 26,324
Expenditures:

General government - 607 607
Total expenditures - 607 607
Excess of revenues over (under) expenditures 6,600 32,317 (25,717) Other Financing Sources (Uses):

Transfers out -
Total other financing sources (uses) - - -
Net change in fund balance $ 6,600 32,317 $ (25,717)
Fund balance - July 1 58,458
Fund balance - June 30 $ 90,775
117

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

WATER DEVELOPMENT IMPACT FEES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 25,000 $ 107,753 $ 82,753
Use of money and property - 3,052 3,052
Total revenues 25,000 110,805 85,805
Expenditures:

Public works - 607 (607)
Total expenditures - 607 (607)
Excess of revenues over (under) expenditures 25,000 110,198 85,198 Other Financing Sources (Uses):

Transfers out (25,000) - 25,000
Total other financing sources (uses) (25,000) - 25,000
Net change in fund balance $ - 110,198 $ 110,198
Fund balance - July 1 36,892
Fund balance - June 30 $ 147,090
118

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

STATE MANDATED ADA
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Charges for services $ 6,000 $ 5,414 $ (586)
Total revenues 6,000 5,414 (586)
Other Financing Sources (Uses):

Transfers out (6,000) -
Total other financing sources (uses) (6,000) -
Net change in fund balance $ - 5,414 $ (586)
Fund balance - July 1 9,619
Fund balance - June 30 $ 15,033
119

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

SUBSIDIZED SENIOR TRANSPORTATION
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Use of money and property 300 627 327
Total revenues 300 627 327
Expenditures:

Total expenditures - - -
Excess of revenues over (under) expenditures 300 627 327 Net change in fund balance $ 300 627 $ 327
Fund balance - July 1 23,696
Fund balance - June 30 $ 24,323
120

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

LOCAL TRANSPORTATION FUND
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Intergovernmental $ 443,500 $ 283,822 $ (159,678)
Use of money and property 22,000 56,478 34,478
Total revenues 465,500 340,300 (125,200)
Expenditures:

General government 4,500 4,500
Public works 80,000 80,000
Capital outlay 80,194 (80,194)
Total expenditures 84,500 80,194 4,306
Excess of revenues over (under) expenditures 381,000 260,106 (120,894) Other Financing Sources (Uses):

Transfers out (1,900,000) (1,800,000) 100,000
Total other financing sources (uses) (1,900,000) (1,800,000) 100,000 Net change in fund balance $ (1,519,000) (1,539,894) $ (20,894) Fund balance - July 1 2,054,828
Fund balance - June 30 $ 514,934
121

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

CDBG NON-ENTITLEMENT
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Intergovernmental $ - $ 852,413 $ 852,413
Total revenues - 852,413 852,413
Expenditures:

Community development 330,794 (330,794)
Total expenditures 330,794 (330,794)
Excess of revenues over (under) expenditures - 521,619 521,619 Other Financing Sources (Uses):

Transfers in -
Transfers out - (489,014) 489,014
Total other financing sources (uses) - (489,014) 489,014 Net change in fund balance $ - 32,605 $ 32,605
Fund balance - July 1 33,393
Fund balance - June 30 $ 65,998
122

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

HOME GRANT FUND
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Other $ - $ - $ -
Total revenues - - -
Net change in fund balance $ - - $ -
Fund balance - July 1 122,500
Fund balance - June 30 $ 122,500
123

CITY OF GROVER BEACH

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL

UNDERGROUND UTILITIES
For the Fiscal Year Ended June 30, 2025
Final Budget Actual
Variance
Over/(Under)
Revenues:

Use of money and property $ 4,000 $ 6,323 $ 2,323
Total revenues 4,000 6,323 2,323
Net change in fund balance $ 4,000 6,323 $ 2,323
Fund balance - July 1 239,965
Fund balance - June 30 $ 246,288
124

CITY OF GROVER BEACH

COMBINING STATEMENT OF FIDUCIARY NET POSITION

PRIVATE PURPOSE TRUST FUNDS
June 30, 2025
Housing
Successor
Agency
RDA Successor
Agency Total
ASSETS
Cash and investments $ 29,079 $ - $ 29,079
Cash and investments with fiscal agent 330,758 330,758
Land held for projects 380,000 380,000
Total assets 409,079 330,758 739,837

LIABILITIES
Accounts payable
Accrued interest payable 55,729 55,729
Unearned revenue 229,625 229,625
Noncurrent liabilites
Due within one year 165,000 165,000
Due in more than one year 2,229,869 2,229,869
Total Liabilities - 2,680,223 2,680,223

NET POSITION
Restricted for:

Individuals, organizations, and other governments $ 409,079 $ (2,349,465) $ (1,940,386) 125

CITY OF GROVER BEACH

PRIVATE PURPOSE TRUST FUNDS
For the Fiscal Year Ended June 30, 2025
Housing
Successor Agency
RDA Successor
Agency Total
Additions:

Taxes $ - $ 293,250 $ 293,250
Interest 17,020 17,020
Other -
Total additions - 310,270 310,270
Deductions:

Community development 6,415 6,415
Interest expense 122,250 122,250
Total deductions - 128,665 128,665
Change in net position - 181,605 181,605
Total net position-beginning 403,913 (2,525,905) (2,121,992) Total net position-ending $ 403,913 $ (2,344,300) $ (1,940,387)

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 126

CITY OF GROVER BEACH

CUSTODIAL FUNDS
June 30, 2025
Tourism
Marketing
District Tax
Fund
Building and
Planning
Fund Deposit Fund Total
ASSETS
Cash and investments $ 19,022 $ 367,157 $ 249,307 $ 635,486 Total assets 19,022 367,157 249,307 635,486

LIABILITIES
Accounts payable and other liabilities 3,612 3,612
Due to other governments 19,022 190,915 102,441 312,378 Total Liabilities 19,022 190,915 106,053 315,990

NET POSITION
Restricted for:

Individuals, organizations, and other
governments $ - $ 176,243 $ 143,253 $ 319,496

COMBINING STATEMENT OF FIDUCIARY NET POSITION
127

CITY OF GROVER BEACH

CUSTODIAL FUNDS
For the Fiscal Year Ended June 30, 2025
Tourism
Marketing
District Tax
Fund
Building and
Planning
Fund Deposit Fund Total
Additions:

Taxes for other governments $ 118,527 $ - $ - $ 118,527 Security deposits 405,430 405,430
Building and planning deposits 224,326 224,326
Total additions 118,527 224,326 405,430 748,283
Deductions:

Payments to other governments 114,090 114,090
Refunds 360,004 360,004
Other expense 5,728 5,728
Total deductions 114,090 - 365,732 479,822
Change in net position 4,437 224,326 39,698 268,461
Total net position-beginning (14,585) (40,010) 105,630 51,035 Total net position-ending $ (10,148) $ 184,316 $ 145,328 $ 319,495

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 128

CITY OF GROVER BEACH

SCHEDULE OF DEBT SERVICE COVERAGE
For the Fiscal Year Ended June 30, 2025
2025
Service charges $ 4,111,761
Other operating revenue 149,148
Total service charges 4,260,909
Investment income 98,275
Total miscellaneous revenue 817,971
Total Revenue $ 5,078,880
Personnel costs 892,453
Supplies (1) 1,058,668
Lopez Contract O&M (2) 882,647
Lopez Dam Bonds - 2011A Debt Service (2) (3) 71,782
Lopez SRF Loan Debt Service (2) 295,254
Lopez Capital Outlay (2) 111,258
Other Charges (1), (4) 97,295
3,409,357
25% Coverage Fator of Lopez 2011A Bonds (5) 20,875
Total Operations and Maintenance 3,430,232
Net Revenue Available for Debt Service $ 1,648,648
Debt service:
2020 Water Bond 281,281
Total debt service $ 281,281
Net Revenue after Debt Service
Calculated coverage 5.861214
Meets covenant restrictions Yes
Notes:
(1) Supplies and services less (2) and (3)
(2) Includes actual cost from San Luis Obispo County
(3) Includes debt service allocated to the City, net of County received property taxes
(4) Includes non-capital equipment, but excludes depreciation expense
(5) For Lopez 2011A bonds, pledge of gross revenue requires coverage factor of 25% of Lopez 2011A bond debt service
129

STATISTICAL

SECTION

STATISTICAL SECTION
This section of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Financial Trends Information
These schedules contain trend information to help the reader understand how the City’s financial performances and well‐being have changed over time.

Revenue Capacity Information
These schedules contain trend information to help the reader understand the City’s most significant local revenue source, property taxes.

Debt Capacity Information
These schedules contain trend information to help the reader assess the affordability of the City’s current level of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
130

CITY OF GROVER BEACH

NET POSITION BY COMPONENT
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021
Governmental Activities
Net investment in capital assets $ 12,890,591 $ 10,357,447 $ 3,309,344 $ 17,844,806 $ 19,087,485 $ 19,441,210 Restricted 14,200,615 11,338,614 4,335,595 16,443,580 12,464,114 9,082,474 Unrestricted (14,013,120) (11,773,429) (6,661,847) (35,569,175) (34,991,224) (33,038,276) Total governmental activities net position 13,078,086 9,922,632 983,092 (1,280,789) (3,439,625) (4,514,592) Business-type Activities
Net investment in capital assets $ 5,703,245 $ 5,601,488 $ 5,425,644 $ 5,312,360 $ 1,899,045 $ 6,673,989 Restricted
Unrestricted 5,734,800 5,486,860 5,068,837 5,716,976 11,058,092 7,521,866 Total business-type activities net position $ 11,438,045 $ 11,088,348 $ 10,494,481 $ 11,029,336 $ 12,957,137 $ 14,195,855 Primary Government
Net investment in capital assets $ 18,593,836 $ 15,958,935 $ 8,734,988 $ 23,157,166 $ 20,986,530 $ 26,115,199 Restricted 14,200,615 11,338,614 4,335,595 16,443,580 12,464,114 9,082,474 Unrestricted (8,278,320) (6,286,569) (1,593,010) (29,852,199) (23,933,132) (25,516,410) Total primary government net position $ 24,516,131 $ 21,010,980 $ 11,477,573 $ 9,748,547 $ 9,517,512 $ 9,681,263 Fiscal Year
131
2022 2023 2024 2025
$ (7,176,380) (9,088,718) $ (9,990,567) (2,030,157)
6,224,776 6,644,643 7,147,637 6,835,235
(3,999,262) (1,839,706) (1,516,093) (4,130,344)
(4,950,866) (4,283,781) (4,359,023) 674,734
$ 8,082,305 $ 7,817,262 $ 6,024,334 $ 6,435,916
8,124,079 6,500,613 7,659,720 7,904,217
$ 16,206,384 $ 14,317,875 $ 13,684,054 $ 14,340,133
$ 905,925 $ (1,271,456) $ (3,966,233) $ 4,405,759
6,224,776 6,644,643 7,147,637 6,835,235
4,124,817 4,660,907 6,143,627 3,773,873
$ 11,255,518 $ 10,034,094 $ 9,325,031 $ 15,014,867
Year
132
2016 2017 2018 2019 2020 2021
General government $ 1,884,959 $ 2,086,579 $ 2,670,331 $ 2,716,640 $ 3,275,341 $ 4,363,505 Public safety 3,738,665 5,535,688 6,490,947 6,171,995 7,580,648 7,385,514 Community development 806,727 1,195,283 679,727 611,340 1,064,355 698,932 Public works 5,194,271 7,433,919 9,986,270 7,859,731 7,994,179 5,961,342 Parks and recreation 717,105 475,754 482,567 537,448 517,919 373,201 Total governmental activities 12,341,727 16,727,223 20,309,842 17,897,154 20,432,442 18,782,494 Water 3,814,432 2,724,944 3,589,286 2,857,203 2,900,305 3,181,371 Water conservation 126,950 92,307 26,131 9,658 13,278 9,265 Wastewater 1,591,627 2,594,299 2,763,509 1,147,410 1,142,702 1,297,102 Total business-type activities: 5,533,009 5,411,550 6,378,926 4,014,271 4,056,285 4,487,738 Total primary government expenses $ 17,874,736 $ 22,138,773 $ 26,688,768 $ 21,911,425 $ 24,488,727 $ 23,270,232 General government $ 523,119 $ 380,195 $ 416,456 $ 681,253 $ 400,435 $ 721,381 Public safety 127,024 131,546 153,464 213,377 224,084 46,924 Community development 149,698 86,368 149,400 187,500
Public works 698,187 588,912 774,174 574,020 639,556 218,552 Parks and recreation 326,693 200,647 259,066 245,015 261,915 57,443 1,474,983 1,874,270 652,324 804,496 2,919,414 1,405,720 1,425,586 1,489,982 205,034 1,792,844 1,737,261 639,160 Total governmental activities program
revenues $ 4,575,592 $ 4,665,552 $ 2,610,216 $ 4,397,373 $ 6,332,065 $ 3,276,680 Water 2,617,463 2,698,170 3,290,282 3,532,917 3,973,531 4,311,419 Water conservation 238,095 194,268 49,651 22,418
Wastewater 2,214,610 2,598,351 2,781,150 1,358,119 1,263,722 1,272,571 Total business-type activities program
revenues 5,070,168 5,490,789 6,121,083 4,913,454 5,237,253 5,583,990 Total primary government program
revenues $ 9,645,760 $ 10,156,341 $ 8,731,299 $ 9,310,827 $ 11,569,318 $ 8,860,670 Net revenue (expense)
Governmental activities $ 12,151,631 $ 15,644,290 $ 15,286,938 $ 16,035,069 $ 14,100,377 $ 15,505,814 Business-type activities activities 341,382 888,137 (2,106,812) (857,169) (1,180,968) (1,096,252) Total primary government $ 12,493,013 $ 16,532,427 $ 13,180,126 $ 15,177,900 $ 12,919,409 $ 14,409,562 Taxes:

Secured and unsecured property taxes 4,478,834 4,614,075 5,044,595 5,970,615 6,209,369 6,509,477 Other taxes 3,135,658 3,378,521 3,382,130 4,896,931 6,191,702 7,843,083 Investment income (loss) 30,311 43,797 74,531 192,334 171,193 (22,612) Other revenues 294,663 446,058 13,875 90,956 19,476 59,549 Transfers 343,935 463,766 410,323 502,499 (650,199) 41,350 Total governmental activities 8,283,401 8,946,217 8,925,454 11,653,335 11,941,541 14,430,847 Investment income (loss) 12,249 34,830 26,149 86,155 96,634 49,547 Other revenues 134,269
Transfers (343,935) (463,766) (410,323) (502,499) 650,199 (41,350) Total business-type activities (331,686) (428,936) (384,174) (416,344) 746,833 142,466 Total primary government $ 7,951,715 $ 8,517,281 $ 8,541,280 $ 11,236,991 $ 12,688,374 $ 14,573,313 Governmental activities $ (3,868,230) $ (6,698,073) $ (6,361,484) $ (4,381,734) $ (2,158,836) $ (1,074,967) Business-type activities (673,068) (1,317,073) 1,722,638 440,825 1,927,801 1,238,718 Total primary government $ (4,541,298) $ (8,015,146) $ (4,638,846) $ (3,940,909) $ (231,035) $ 163,751 Business-type Activities:

Capital contributions and grants
Fiscal Year

CITY OF GROVER BEACH

CHANGES IN NET POSITION
Last Ten Fiscal Years
Charges for services:

CHANGE IN NET POSITION

GENERAL REVENUES AND OTHER CHANGES IN

NET POSITION
Governmental Activities
Business-type Activities:

Capital contributions and grants:

EXPENSES
Governmental Activities
Business-type Activities:

PROGRAM REVENUES
Governmental Activities
Charges for services:

Operating contributions and grants
133
2022 2023 2024 2025
$ 4,695,218 $ 4,657,513 $ 8,286,836 $ 9,297,924
7,977,222 7,826,482 7,774,094 8,144,348
976,070 851,204 6,467,427 1,110,347
7,821,460 7,100,166 6,835,386 4,167,734
606,330 603,660 - -
22,076,300 21,039,025 29,363,743 22,720,353
3,149,314 5,389,559 4,665,962 3,714,756
11,291 19,282 4,771 3,387
1,348,332 1,150,078 1,326,010 1,383,646
4,508,937 6,558,919 5,996,743 5,101,789
$ 26,585,237 $ 27,597,944 $ 35,360,486 $ 27,822,142
$ 798,367 $ 995,944 $ 1,173,999 $ 1,935,982
58,587 59,895 62,901 63,400
197,365 185,000 158,750 127,500
241,138 355,512 500,551 609,419
194,199 203,498 - -
4,045,051 1,862,592 8,845,685 5,949,683
1,131,438 437,101 287,585 283,822
$ 6,666,145 $ 4,099,542 $ 11,029,471 $ 8,969,806
3,906,986 3,638,849 4,191,728 4,260,909
0 1,306,389 1,327,978 1,603,890 1,334,535
5,213,375 4,966,827 5,795,618 5,595,444
$ 11,879,520 $ 9,066,369 $ 16,825,089 $ 14,565,250
$ 15,410,155 $ 16,939,483 $ 18,334,272 $ 13,750,547
(704,438) 1,592,092 201,125 (493,655)
$ 14,705,717 $ 18,531,575 $ 18,535,397 $ 13,256,892
6,836,295 7,552,939 8,014,612 8,321,178
9,143,089 9,124,697 8,667,192 9,074,700
(184,073) 358,045 860,579 579,709
384,506 101,928 15,246 18,000
(1,205,936) 490,290 701,401 790,717
14,973,881 17,627,899 18,259,030 18,784,304
48,536 193,872 268,696 233,445
51,619 (8,138) 9 719,696
1,205,936 (490,290) (701,401) (790,717)
1,306,091 (304,556) (432,696) 162,424
$ 16,279,972 $ 17,323,343 $ 17,826,334 $ 18,946,728
$ (436,274) $ 688,416 $ (75,242) $ 5,033,757
2,010,529 (1,896,648) (633,821) 656,079
$ 1,574,255 $ (1,208,232) $ (709,063) $ 5,689,836
Year
134

CITY OF GROVER BEACH

FUND BALANCES OF GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021

GENERAL FUND
Nonspendable $ 1,612 $ 1,612 $ 1,612 $ 1,612 $ 86,115 $ 2,823 Unassigned 3,456,896 3,053,454 1,269,091 2,210,205 3,183,015 4,048,221 Total general fund $ 3,458,508 $ 3,055,066 $ 1,270,703 $ 2,211,817 $ 3,269,130 $ 4,051,044

ALL OTHER GOVERNMENTAL FUNDS
Restricted $ 14,049,871 $ 10,802,117 $ 19,066,870 $ 16,339,179 $ 12,195,614 $ 9,082,474 Unassigned (326) (107,570) 1,179,248 (378,497) (349,107) (322,696) Total all other governmental funds $ 14,049,545 $ 10,694,547 $ 20,246,118 $ 15,960,682 $ 11,846,507 $ 8,759,778 Effective June 30, 2011, the City of Grover Beach
classifications of fund balance.

Fiscal Year
135
2022 2023 2024 2025
$ 1,612 $ 2,760 $ 1,612 $ 1,612
5,784,056 7,485,453 8,803,993 7,023,227
$ 5,785,668 $ 7,488,213 $ 8,805,605 $ 7,024,839
$ 15,536,693 $ 12,361,098 $ 10,656,910 $ 9,965,230
(1,111) (282,450) -
$ 15,536,693 $ 12,359,987 $ 10,374,460 $ 9,965,230
al Year
136
2016 2017 2018 2019 2020 2021
Taxes $ 7,614,492 $ 7,992,596 $ 8,426,725 $ 10,867,546 $ 12,401,071 $ 14,352,559 Licenses, permits, and fees 302,023 258,201 295,736 430,005 406,479 335,682 Intergovernmental 2,871,124 3,364,252 852,357 2,597,339 4,656,675 2,044,880 Charges for services 1,003,102 695,134 1,124,635 1,127,114 1,070,362 779,821 Fines and forfeitures 61,822 79,365 71,626 62,378 57,198 40,845 Use of money and property 315,926 314,460 328,910 433,845 294,560 103,952 Other 194,245 265,891 25,358 29,981 17,400 28,500
Total revenues 12,362,734 12,969,899 11,125,347 15,548,208 18,903,745 17,686,239 General government 1,759,005 1,951,745 2,518,969 2,589,635 3,056,601 4,210,209 Public safety 5,005,977 5,337,278 5,738,932 5,671,913 6,749,585 7,235,622 Community development 746,748 1,131,505 608,668 566,312 967,603 706,733 Public works 1,514,746 1,665,054 1,906,684 6,375,483 6,426,259 4,615,693 Parks and recreation 413,671 438,981 441,286 462,319 420,650 335,923 Capital outlay 4,239,849 6,043,779 7,813,816 2,213,161 1,842,128 1,088,752 Debt service:

Principal 22,893 133,130 360,169 467,695 814,627 842,171 Interest 193,530 450,633 589,631 1,050,787 1,032,955 997,301 Total expenditures 13,896,419 17,152,105 19,978,155 19,397,305 21,310,408 20,032,404 Excess of revenues over (under)
expenditures (1,533,685) (4,182,206) (8,852,808) (3,849,097) (2,406,663) (2,346,165) Long-term debt issued 16,209,693 434,614
Lease liability (as lease)
Transfers in 549,308 576,979 484,104 540,483 571,605 1,302,405 Transfers out (205,373) (113,213) (73,781) (37,984) (1,221,804) (1,261,055) Bond proceeds 8,509,358
Extraordinary gain on dissolution of
the redevelopment agency
Total other financing sources (uses) 8,853,293 463,766 16,620,016 937,113 (650,199) 41,350 Net change in fund balances $ 7,319,608 $ (3,718,440) $ 7,767,208 $ (2,911,984) $ (3,056,862) $ (2,304,815) Debt service as a percentage of
non-capital expenditures 2.29% 5.55% 8.47% 9.69% 10.49% 10.75%

CITY OF GROVER BEACH
Last Ten Fiscal Years

REVENUES

EXPENDITURES

OTHER FINANCING SOURCES (USES)

CHANGES IN FUND BALANCES OF GOVERNMENTAL
Fiscal Year
137
2022 2023 2024 2025
$ 15,979,383 $ 16,677,637 $ 14,526,218 $ 17,395,877
351,466 424,554 514,705 542,467
5,176,489 2,299,693 7,394,417 6,233,505
970,860 1,197,700 730,264 2,012,879
47,823 42,857 37,838 30,509
(45,691) 473,135 586,589 730,157
488,132 100,244 2,183 18,000
22,968,462 21,215,820 23,792,214 26,963,394
4,443,393 4,517,231 7,905,734 8,773,230
7,592,483 7,856,406 6,680,356 7,171,966
949,997 904,966 5,811,858 1,036,562
7,011,955 5,706,596 1,462,540 2,538,215
550,091 555,034 - -
2,707,198 1,600,781 1,786,250 8,559,182
852,838 1,045,202 83,813 1,058,557
971,370 1,338,668 18,733 1,243,023
25,079,325 23,524,884 23,749,284 30,380,735
(2,110,863) (2,309,064) 42,930 (3,417,341)
371,147 1,167,032 220,085
3,231,799 1,558,569 636,417 9,095,396
(4,437,735) (1,068,279) (528,987) (8,304,679)
11,457,191
10,622,402 490,290 1,274,462 1,010,802
$ 8,511,539 $ (1,818,774) $ 1,317,392 $ (2,406,539)

8.88% 12.20% 0.47% 11.79%
Year
138

CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal
Year Property Sales & Use Cannabis
Transient
Occupancy
Franchise
Fees Other Total
2016 4,478,834 2,044,178 363,352 523,347 204,781 $ 7,614,492 2017 4,614,075 2,221,417 368,672 542,912 245,520 $ 7,992,596 2018 5,044,595 2,188,629 16,359 371,169 529,160 276,813 $ 8,426,725 2019 5,970,615 2,657,247 953,342 433,249 555,460 297,633 $ 10,867,546 2020 6,209,369 2,819,913 1,936,729 433,460 585,035 416,565 $ 12,401,071 2021 6,509,477 3,846,966 2,424,914 580,423 600,228 390,552 $ 14,352,560 2022 6,836,295 5,649,554 1,515,590 952,228 619,416 406,301 $ 15,979,384 2023 7,591,248 5,882,949 1,198,037 924,162 713,394 406,155 $ 16,715,945 2024 8,014,612 5,733,277 1,066,489 953,685 718,907 194,834 $ 16,681,804 2025 8,321,178 5,880,971 1,093,170 1,028,421 846,346 225,792 $ 17,395,877

TAX REVENUE BY SOURCE - GENERAL FUND
-
2 4
6 8
10 12
14 16
18 2016 2017 2018 2019 2020 2021 2022 2023

MILLIONS

MILLIONS
Property Sales & Use Cannabis Transient Occupancy Franchise Fees Other -
2 4
6 8
10 12
14 16
18 20
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MILLIONS

MILLIONS
Property Sales & Use Cannabis Transient Occupancy Franchise Fees Other 139

CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal Year Secured Unsecured SBE Nonunitary Net Total AV % Change 2016 1,428,953,619 36,070,896 340,461 1,465,364,976 4.54% 2017 1,507,554,753 40,916,971 307,339 1,548,779,063 5.69% 2018 1,589,746,399 37,312,380 311,781 1,627,370,560 5.07% 2019 1,691,583,881 39,079,692 295,068 1,730,958,641 6.37% 2020 1,774,051,571 42,307,282 295,699 1,816,654,552 4.95% 2021 1,855,486,235 45,766,485 290,500 1,901,543,220 4.67% 2022 1,934,674,078 27,407,309 285,642 1,962,367,029 3.20% 2023 2,060,810,502 27,901,941 388,172 2,089,100,615 6.46% 2024 2,173,954,240 30,492,219 381,386 2,204,827,845 5.54% 2025 2,287,429,443 35,528,650 363,448 2,323,321,541 5.37% Notes:

A) Secured property is generally real property, defined as land, mines, minerals, timber and improvements such as buildings, structures, crops, trees and vines.

B) Unsecured property is generally personal property including machinery, equipment, office tools and supplies.

Data Source: San Luis Obispo County Assessor FY 2015-16 to FY 2024-25 Combined Tax Rolls HDL, Coren & Cone FY 2015-16 to FY 2024-25

NET TAXABLE ASSESSED VALUE HISTORY
-
500
1,000
1,500
2,000
2,500
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Secured Unsecured SBE Nonunitary
140
2016 2017 2018 2019 2020 2021
Residential $ 1,222,920,374 $ 1,291,868,396 $ 1,367,724,526 $ 1,445,030,947 $ 1,500,964,842 $ 1,568,642,884 Commercial 136,713,661 142,779,798 149,072,791 147,306,313 149,800,008 158,850,295 Industrial 35,828,814 36,762,963 37,867,319 69,391,476 68,420,094 71,395,036 Government Owned 23,722 24,082 24,562 25,053
Dry Farm 2,330,851 2,377,466
Institutional 1,551,535 1,539,460 1,625,318 1,805,612 2,235,079 1,648,802 Irrigated 1,256,596 1,275,757 1,451,248 1,480,272 1,509,876 1,540,073 Miscellaneous 2,606,272 2,776,708 2,819,803 3,235,053 4,067,641 4,135,414 Recreational 1,044,460 1,060,383 1,082,022 1,103,657 1,119,771 1,142,162 Vacant 27,008,185 29,467,206 28,078,810 22,205,498 41,105,924 43,482,466 2,497,485 2,271,637
1,428,953,619 1,507,554,753 1,589,746,399 1,691,583,881 1,774,051,571 1,855,486,235 340,461 307,339 311,781 295,068 295,699 290,500
36,070,896 40,916,971 37,312,380 39,079,692 42,307,282 45,766,485 $ 1,465,364,976 $ 1,548,779,063 $ 1,627,370,560 $ 1,730,958,641 $ 1,816,654,552 $ 1,901,543,220

0.18532 0.18530 0.18547 0.18536 0.18494 0.18514
Notes:

B) In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed.

Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%).

With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Data Source: San Luis Obispo County Assessor FY 2015-16 to FY 2024-25 Combined Tax Rolls HDL, Coren & Cone FY 2015-16 to FY 2024-25
Secured
Unknown
Total Secured
Fiscal Year

CITY OF GROVER BEACH

ASSESSED VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Category
Fiscal Year
Unsecured
Totals
Total Direct Rate
A) Exempt values are not included in Total.

SBE Nonunitary
141
2022 2023 2024 2025
$ 1,655,549,609 $ 1,772,551,906 $ 1,869,805,540 $ 1,976,322,156 163,479,302 169,592,187 175,845,907 185,392,493
74,970,268 79,062,188 82,958,635 85,738,713
26,332 26,857 27,393 27,806
1,665,882 1,699,198 1,733,180 9,961,917
1,556,026 1,587,145 1,618,887 1,651,263
3,413,905 3,471,921 3,541,349 3,550,107
903,223 921,285 939,705 967,480
33,109,531 31,897,815 37,483,644 43,889,299
1,934,674,078 2,060,810,502 2,173,954,240 2,307,501,234 285,642 388,172 381,386 363,448
27,407,309 27,901,941 30,492,419 37,301,872
$ 1,962,367,029 $ 2,089,100,615 $ 2,204,828,045 $ 2,345,166,554

0.18526 0.18540 0.18505 0.18501
ar
142
2016 2017 2018 2019 2020 2021

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Cuesta Community College 2014 A & A1 0.01925 0.01925 0.01925 0.01925 0.01925 0.01925 Grover Beach Road 2014 Series A & B 0.02400 0.03431 0.05135 0.08500 0.08500 0.08500 Lopez Dam Retrofit 2011 Ref 2000 0.00982 0.00882 0.00732 0.00489 0.00489 0.00600 Lucia Mar Unified 0.04094 0.03994 0.08194 0.08094 0.07234 0.05749 State Water Bond 0.00374 0.00400 0.00400 0.00400 0.00400 0.00400

1.09775 1.10632 1.16386 1.19408 1.18548 1.17174

0.18423 0.18253 0.18223 0.18214 0.18174 0.18129

0.18532 0.18500 0.18547 0.18536 0.18494 0.18514
Notes:

This 1% is shared by all taxing agencies for which the subject property resides within. In addition to the 1% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City.

Not all overlapping rates apply to all property owners. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known. and is subject to the limitations described above.
(4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012-13 and years therafter.
(5) Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in FY 2013-14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas.

Challenges to recognized enforceable obligations are assumed to have been resolved during FY 2012-13. For the purpose of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.

Data Source: San Luis Obispo County Assessor FY 2015-16 to FY 2024-25 Combined Tax Rolls HDL, Coren & Cone FY 2015-16 to FY 2024-25

CITY OF GROVER BEACH

DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
Fiscal Year
Redevelopment Rate (4)
Total Direct Rate (5)
(1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1% fixed amount.

Agency
Basic Levy (1)
Total Direct & Overlapping (2) Tax Rates
City's Share of 1% Levy Per Prop 13 (3)
Voter Approved City Debt Rate
143
2022 2023 2024 2025

1.00000 1.00000 1.00000 1.00000

0.01925 0.01925 0.01925 0.01750

0.08500 0.09500 0.09500 0.09000

0.00600 0.00600 0.00600 0.00600

0.05878 0.03950 0.03500 0.02800

0.00400 0.00400 0.00363 0.00365

1.17303 1.16375 1.15888 1.14515

0.18223 0.18194 0.18131 0.18126

0.18526 0.18540 0.18505 0.18501
Year
144

CITY OF GROVER BEACH
Current Year and Nine Fiscal Years Ago
Taxpayer Type of Business
Taxable Assessed
Value Rank
Percent of Total
City Taxable
Assessed Value
Safeway Realty LLC Commercial $ 14,411,781 1 0.63%
Searidge LP Residential 12,310,012 2 0.54%
Siyaram LLC Commercial 11,756,693 3 0.51%
California Fine Wire Company Industrial 11,350,205 4 0.50% Ramona Garden Apartments Residential 6,762,600 5 0.30%
Kaveh Zarrabian Trust Et Al Commercial 6,500,000 6 0.28% Vision To Life LLC Residential 5,935,639 7 0.26%
Manfred G Freutel Trust Residential 5,611,283 8 0.25%
Excel Grover Beach LP Residential 5,181,300 9 0.23%
James A Cashin Trust Et Al Residential 4,953,663 10 0.22% Top Ten Total $ 84,773,176 3.71%
City Total $ 2,287,792,891
Unitary Tax Roll
HDL, Coren & Cone FY 2015-16 & FY 2024-25

PRINCIPAL PROPERTY TAXPAYERS
2025
Data Source: San Luis Obispo County Assessor FY 2015-16 to FY 2024-25 Combined Tax Rolls and the SBE Non 145
Taxpayer Type of Business
Taxable Assessed
Value Rank
Percent of Total
City Taxable
Assessed Value
Papich Construction Company Inc Unsecured $ 15,061,548 1 1.03% Von's Companies Inc Commercial 10,484,874 2 0.72%
Grand Avenue LLC Commercial 7,159,865 3 0.49%
John B Forde Trust ETAL Commercial 7,095,418 4 0.48%
Oak Park Village Apartment LLC Residential 5,400,213 5 0.37% Manfred G Freutel Trust Residential 4,762,255 6 0.32%
MSB Properties Inc Commercial 4,732,265 7 0.32%
Vision To Life LLC Residential 4,617,428 8 0.32%
California Fine Wire Company Industrial 4,529,891 9 0.31% Behrooz Zarrabian Trust Commercial 4,137,698 10 0.28%
Top Ten Total $ 67,981,455 4.64%
City Total $ 1,465,364,976
2016
on
146

CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal Year
Taxes Levied for the
Fiscal Year Amount Percentage of Levy
2016 2,681,559 2,681,559 100.00%
2017 2,922,009 2,922,009 100.00%
2018 3,035,376 3,035,376 100.00%
2019 3,201,623 3,201,623 100.00%
2020 3,353,952 3,353,952 100.00%
2021 3,441,883 3,441,883 100.00%
2022 3,654,906 3,654,906 100.00%
2023 3,955,026 3,955,026 100.00%
2024 3,257,508 3,257,508 100.00%
2025 3,333,019 3,333,019 100.00%
Notes:

Source: San Luis Obispo County Assessor

PROPERTY TAX LEVIES AND COLLECTIONS
Collected within the Fiscal Year of the Levy
Only current secured property taxes are reported on this schedule. The City has elected the Teeter Plan method of property tax collection, whereby the County remits 100% of taxes levied and pursues collection and retains any delinquent taxes and related penalties and interest. 147

CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal Year City Supplemental
State of
California
County of San
Luis Obispo Total Rate
2016 0.75% 0.50% 6.50% 0.25% 8.00%
2017 1.00% 0.50% 6.00% 0.25% 7.75%
2018 1.00% 0.50% 6.00% 0.25% 7.75%
2019 1.00% 0.50% 6.00% 0.25% 7.75%
2020 1.00% 0.50% 6.00% 0.25% 7.75%
2021 1.00% 1.50% 6.00% 0.25% 8.75%
2022 1.00% 1.50% 6.00% 0.25% 8.75%
2023 1.00% 1.50% 6.00% 0.25% 8.75%
2024 1.00% 1.50% 6.00% 0.25% 8.75%
2025 1.00% 1.50% 6.00% 0.25% 8.75%
Notes:

In 2020, the City voters authorized a one percent (1.0%) transaction and use tax, effective November 3, 2020.

Source: STATE OF California - Board of Equalization

DIRECT AND OVERLAPPING SALES TAX RATES
City Direct Rates Overlapping Rates
148

CITY OF GROVER BEACH
Last Ten Fiscal Years
(in thousands of dollars)
2016 2017 2018 2019 2020 2021
Eating and Drinking Places $ 43,476 $ 44,113 $ 43,560 $ 47,219 $ 46,209 $ 49,853 Auto Dealers and Supplies 30,325 29,694 11,235 32,582 9,588 11,334 Other Retail Stores 17,250 13,557 30,545 33,571 43,583 54,953 All Other Outlets 33,477 31,236 36,245 32,579 54,369 47,025 Total $ 124,528 $ 118,600 $ 121,585 $ 145,951 $ 153,749 $ 163,165 Source: California Municipal Statistics

TAXABLE SALES BY CATEGORY
Fiscal Year
149
2022 2023 2024 2025
$ 52,076 $ 50,781 $ 51,542 $ 51,167
10,311 9,467 11,923 9,414
50,802 43,300 35,829 37,303
57,519 71,874 63,250 63,637
$ 170,708 $ 175,422 $ 162,544 $ 161,521
150

CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal
Year
LeasePurchase
Financing
Subscription
Liability
Financed
Purchases
Lease
Liability
State
Loan
General
Obligation
Bonds
Financed
Purchases
Lease
Liability
Water
Revenue
Bonds
Total Primary
Government
Outstanding
Debt to
Assessed
Value
Debt per
Capita
2016 254,752 13,862,147 14,116,899 0.96% $ 1,053.74
2017 231,622 13,717,418 13,949,040 0.90% $ 1,038.03
2018 77,419 208,261 29,452,999 116,128 29,854,807 1.83% $ 2,201.68 2019 392,934 184,665 29,050,145 89,165 29,716,909 1.72% $ 2,195.88 2020 277,135 160,837 28,297,291 60,867 4,456,000 33,252,130 1.83% $ 2,516.43 2021 159,035 136,766 27,519,437 31,168 4,282,000 32,128,406 1.69% $ 2,447.32 2022 371,147 70,509 112,454 38,134,487 4,102,000 42,419,450 2.16% $ 3,231.22 2023 313,905 87,898 37,223,345 3,918,000 41,229,243 1.97% $ 3,307.07 2024 910,420 114,845 464,169 63,098 36,277,203 66,310 3,730,000 40,534,470 1.94% $ 3,251.34 2025 731,914 93,851 433,887 38,047 35,286,061 52,582 3,537,000 39,294,995 1.68% $ 3,166.14

RATIOS OF OUTSTANDING DEBT BY TYPE
Governmental Activities Business-Type Activities
151

CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal
Year
General
Bonded Debt
Less: Amount
Available in
Debt Service
Funds
Net General
Bonded Debt
Ratio of Net
Bonded Debt
to Assessed
Value Population
Net Bonded
Debt per Capita
2016 13,862,147 673,579 13,188,568 0.90% 13,397 984.44
2017 13,717,418 654,212 13,063,206 0.84% 13,438 972.11
2018 29,452,999 1,442,555 28,010,444 1.72% 13,560 2,065.67 2019 29,050,145 1,602,656 27,447,489 1.59% 13,533 2,028.19 2020 28,297,291 1,510,458 26,786,833 1.47% 13,214 2,027.16 2021 27,519,437 1,477,942 26,041,495 1.37% 13,128 1,983.66 2022 38,134,487 2,681,892 35,452,595 1.81% 12,707 2,790.01 2023 37,223,345 2,671,338 34,552,007 1.99% 12,467 2,771.48 2024 36,277,203 2,843,458 33,433,745 2.39% 12,481 2,678.77 2025 35,286,061 3,037,918 32,248,143 2.30% 12,411 2,598.35

RATIOS OF GENERAL BONDED DEBT OUTSTANDING
152

CITY OF GROVER BEACH
For the Fiscal Year Ended June 30, 2025
Jurisdiction
Net Debt
Outstanding
Percentage
Applicable to the
City
Amount Applicable
to the City
Direct and Overlapping Tax and Assessment Debt:

San Luis Obispo County Flood Control and Water Conservation District, Zone No. 3 $ 4,333,000 18.26% $ 791,336
San Luis Obispo County Community College District 192,585,000 3.09% $ 5,941,247 Lucia Mar Unified School District 144,254,802 11.43% 16,491,209 City of Grover Beach 32,695,000 100.00% 32,695,000 (1)
Total Direct and Overlapping Tax and Assessment Debt 55,918,792 Overlapping General Fund Debt:

San Luis Obispo County Certificates of Participation 77,618,932 3.10% 2,404,635 San Luis Obispo County Pension Obligations 19,244,051 3.10% 596,181 Lucia Mar Unified School District General Fund Obligations 12,960,000 11.43% 1,481,587 City of Grover Beach General Fund Obligations 542,588 100.00% 542,588 (2) Total Overlapping General Fund Debt 5,024,991
Overlapping Tax Increment Debt (Successor Agency): 2,365,000 100.000% 2,365,000 Total Direct Debt 33,237,588
Total Overlapping Debt 30,071,195
Combined Total Debt $ 63,308,783 (3)
Ratios to FY 2024-25 Assessed Valuation:

Direct Debt ($32,695,000) 1.39%
Total Direct and Overlapping Tax and Assessment Debt 2.38% Total Direct Debt ($33,237,588) 1.42%
Combined Total Debt 2.70%
Ratio to Redevelopment Incremental Valuation ($314,621,028):

Total Overlapping Tax Increment Debt 0.80%
Notes:
(1) Excludes general obligation bonds to be sold.

Source: California Municipal Statistics
(2) Share of San Luis Obispo County Financing Authority lease revenue bonds.

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
(3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. 153

CITY OF GROVER BEACH
Last Ten Fiscal Years
Assessed value $ 2,345,339,832
Debt limit (15% of assessed value) 351,800,975
Debt applicable to limit
$ 351,800,975
Fiscal Year Debt Limit
Debt Applicable
to Limit
Legal Debt
Margin
Debt as
Percentage of
Limit
2016 219,804,746 219,804,746 0.00%
2017 232,316,859 232,316,859 0.00%
2018 244,105,584 244,105,584 0.00%
2019 259,643,796 259,643,796 0.00%
2020 272,498,183 272,498,183 0.00%
2021 285,231,483 285,231,483 0.00%
2022 294,355,054 294,355,054 0.00%
2023 313,365,092 313,365,092 0.00%
2024 330,724,177 330,724,177 0.00%
2025 351,800,975 351,800,975 0.00%
Note: The legal debt margin for the City of Grover Beach is calculated using a debt limit of 15% of the assessed value of property within city limits.

Data Source: San Luis Obispo County Assessor
City of Grover Beach, Administrative Services Department

LEGAL DEBT MARGIN
Legal Debt Margin Calculation for the Current Year:

Legal Debt Margin - Current Year
154

CITY OF GROVER BEACH
Last Ten Fiscal Years
Fiscal Year Population
Personal
Income
Per Capita
Personal
Income
Unemployment
Rate Median Age
2016 13,397 357,180 26,661 5.1% 38.3
2017 13,438 384,587 28,619 4.7% 39.1
2018 13,560 411,163 30,321 2.8% 37.9
2019 13,533 417,525 30,852 2.9% 35.5
2020 13,214 432,525 32,732 3.6% 36.2
2021 13,128 457,054 34,815 6.9% 37.2
2022 12,707 465,071 36,599 4.5% 38.4
2023 12,467 478,002 38,341 2.0% 39.8
2024 12,481 512,622 41,072 2.3% 40.3
2025 12,411 527,865 52,531 2.7% 40.5
Demographic Data is totaled from Census Block Groups that overlap the City's boundaries.

HDL, Coren & Cone FY 2015-16 to FY 2024-25

DEMOGRAPHIC AND ECONOMIC STATISTICS
Notes and Data Sources: Population: California State Department of Finance.

Unemployment Data: California Employment Development Department.

Income and Age Data: US Census Bureau, most recent American Community Survey.

Projections are developed by incorporation all of the prior census data released to date. 155

CITY OF GROVER BEACH
Last Ten Fiscal Years
Function 2016 2017 2018 2019 2020 2021
General government 15 15 17 17 17 17
Public safety 29 29 32 32 34 34
Community development 3 3 5 5 5 5
Public works 16 17 15 16 16 16
Parks and recreation 3 3 3 3 3 3
Total 66 67 72 73 75 75
Notes:

Source: City of Grover Beach payroll records

FULL-TIME EQUIVALENT GOVERNMENT EMPLOYEES BY FUNCTION
A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave).

Full-time equivalent employment is calculated by dividing total labor hours by 2,080. 156
2022 2023 2024 2025
19 19 19 22
37 30 31 30
5 5 6 6
16 16 13 15
3 3 - -
80 73 69 73
157

CITY OF GROVER BEACH
Last Ten Fiscal Years
Function/Program 2016 2017 2018 2019 2020 2021
General Government:

Number of business licenses 1,445 1,392 1,510 1,379 1,374 1,421 Number of recruitments 2 12 11 14 13 8
Police:

Physical arrests 799 827 585 505 413 694
Traffic citations 1,361 1,212 743 964 761 897
Public Works:

Miles of streets resurfaced 1.26 5.65 0.41 0.97 1.90 3.35 Water customer accounts 4,760 4,816 4,844 4,832 4,960 4,983 Acre feet of water consumed 1,209 1,250 1,220 1,182 1,114 1,173 Community Development:

Building permits issued 404 275 326 276 361 297
Parks and Recreation:

Number of class admissions 981 951 1,133 1,020 944 179
Operating Indicators by Function/Program
Source: City of Grover Beach Departments
Note: General government information related to recruitments unavailable prior to 2015 Fiscal Year
158
2022 2023 2024 2025
1,434 1,469 1,892 1,892
16 32 16 15
681 598 655 679
783 676 352 802

3.80 2.44 1.20 1.30
5,277 5,298 4,981 4,939
1,137 1,022 1,046 1,065
340 317 452 336
782 1,049 1,582 1,605
ear
159

CITY OF GROVER BEACH
Last Ten Fiscal Years
Function/Program 2016 2017 2018 2019 2020 2021
Police:

Stations 1 1 1 1 1 1
Patrol Units 6 6 6 6 6 6
Public Works:

Miles of streets 33.34 33.34 33.34 33.34 33.34 33.34
Streetlights 20 20 20 20 20 48
Traffic signals 32 32 32 32 32 32
Parks and Recreation:

Community centers 1 1 1 1 1 1
Parks 7 7 7 7 7 7
Park acreage 14.0 14.0 14.0 14.0 14.0 14.0
Water:

Miles of mains 48 48 48 48 48 48
Fire hydrants 400 400 400 400 400 400
Number of connections 5,191 5,256 5,254 5,184 5,258 5,270 Storage capacity (thousands of gallons) 4,500 4,500 4,500 4,500 4,500 4,500 Sewer:

Miles of sewers 35 35 35 35 35 35.33
Number of connections 5,052 5,117 5,115 5,045 5,119 5,120 Note:

Capital Asset Statistics by Function/Program
Source: City of Grover Beach Departments
Sewer treatment provided by South San Luis Obispo County Sanitation District as a pass through by the City which collects the fees and remits to the Sanitation District.

Fiscal Year
160
2022 2023 2024 2025
1 1 1 1
6 6 6 6

33.34 33.34 33.34 33.34
48 48 48 48
32 32 32 32
1 1 1 1
7 7 7 7

14.0 14.0 14.0 14.0
48 48 48 48
400 400 400 400
5,277 5,298 5,277 5,050
4,500 4,500 4,500 4,500

35.33 35.33 35.33 35.33
5,138 5,199 5,058 4,802
Year
161