AGENDA
GROVER BEACH CITY COUNCIL
GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET
GROVER BEACH, CALIFORNIA
TUESDAY, MAY 26, 2026, 6:00 PM
Next Resolution No .26-14
Next Ordinance No. 26-03
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, please contact the City Clerk's Office (805-473-4567) at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting.
CALL TO ORDER
CALL TO ORDER
FLAG SALUTE
ROLL CALL Council Members Kathy McCorry-Driscoll, Jules Tuggle, Clint Weirick, Mayor Pro Tem Robert Robert, and Mayor Kassi Dee
CLOSED SESSION ANNOUNCEMENTS
AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of the day. The Council should adopt the agenda as presented or as revised by motion.
CEREMONIAL CALENDAR
1. Proclamation for National Foster Care Month
2. Proclamation for Pride Month
PRESENTATIONS
None
Meetings can be viewed on cable Channel 20 in Grover Beach and are live streamed on www.slospan.org. Members of the public may provide public comment via the phone during the meeting by calling (805) 321-6639 (the phone line will open just prior to the start of the meeting at 6:00 PM). Written public comments can be submitted via email to [email protected]. To ensure distribution to the City Council, please submit comments not later than 12:00 p.m. the day of the meeting. All correspondence will be distributed to the City Council, posted on the City’s website, and be made part of the official public record of the meeting. Please note, comments will not be read into the record.
Agenda: Grover Beach City Council Meeting Page 2
Tuesday, May 26, 2026
PUBLIC COMMUNICATIONS
Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on, or discuss, items not on the agenda.
CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. Recommendations for each item are noted in parentheses. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Items withdrawn from the Consent Agenda will be heard after the rest of the Consent Agenda is approved.
3. Treasurer’s Reports for the Period of April 1, through April 30, 2026 – Administrative Services Director Szamet
(Recommended Action: Approve the Treasurer’s Reports as submitted.)
VOICE VOTE
4. Treasurer’s Reports for the 2025 Sewer Bond Account - $5,000,000 for the Period of April 1, through April 30, 2026 – Administrative Services Director Szamet (Recommended Action: Approve the Treasurer’s Reports as submitted.)
VOICE VOTE
5. Minutes of the City Council Meeting on Monday, May 11, 2026 – City Clerk Sims (Recommended Action: Approve the minutes as submitted or revised.)
VOICE VOTE
6. Appointments to the Planning Commission – City Clerk Sims (Recommended Action: Adopt a Resolution for appointments to the Planning Commission including re-appointment of David Halverson to a four-year term of office, and appointment of Dominic Dal Porto to a four-year term of office, both scheduled to expire May 31, 2030 and appointment of Greg Vine to the remaining two-years of office of former Commissioner Hoffman’s term, scheduled to expire May 31, 2028.)
ROLL CALL VOTE
7. Resolution Confirming a List of Street Projects Funded by SB 1: The Road Repair and Accountability Act – CIP Manager Wiggin
(Recommended Action: Adopt a Resolution to incorporate the list of street projects funded by SB 1: The Road Repair and Accountability Act into the FY 2026-27 budget.)
ROLL CALL VOTE
PUBLIC HEARING
8. City Vacancies Report Pursuant to Assembly Bill 2561 – Assistant City Manager Eriksson and Human Resources Officer McKibben
(Recommended Action: Conduct a public hearing and receive a report on the City’s vacancies and recruitment and retention efforts, including any presentations from the City’s represented bargaining units, pursuant to Assembly Bill (AB) 2561.) Agenda: Grover Beach City Council Meeting Page 3
Tuesday, May 26, 2026
REGULAR BUSINESS
9. Measure K-14 Bond Street Bond Issuance – Assistant City Manager Eriksson and Administrative Services Director Szamet
(Recommended Action: Adopt the Resolution authorizing the issuance and sale of not to exceed $5,000,000 principal amount of General Obligation Bonds for Measure K-14 street repairs and authorizes actions related to the issuance of the General Obligation Bonds.)
ROLL CALL VOTE
COUNCIL COMMITTEE REPORTS
This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating.
SLO Council of Governments/SLO Regional Transit Authority Kassi Dee (Alt: Robert Robert) (SLOCOG / SLORTA)
South County Transit Committee Kassi Dee (Alt: Robert Robert) South SLO County Sanitation District (SSLOCSD) Kassi Dee (Alt: Clint Weirick) Central Coast Community Energy (3CE) Kathy McCorry-Driscoll (Alt: N/A) REACH Kathy McCorry-Driscoll (Alt: Robert Robert)
Visit SLO CAL Advisory Committee Kathy McCorry-Driscoll (Alt: Robert Robert) Air Pollution Control District (APCD) Robert Robert (Alt: Kassi Dee) Integrated Waste Management Authority (IWMA) Robert Robert (Alt: Kathy McCorry-Driscoll) Homeless Services Oversight Council (HSOC) Jules Tuggle (Alt: Clint Weirick) SLO County Water Resources Advisory Committee (WRAC) Jules Tuggle (Alt: Robert Robert) South County Chambers of Commerce Jules Tuggle (Alt: Robert Robert) Zone Three Advisory Committee Jules Tuggle (Alt: Robert Robert) California Joint Powers Insurance Authority (CJPIA) Clint Weirick (Alt: Kathy McCorry-Driscoll) Community Action Partnership of San Luis Obispo County Clint Weirick (Alt: Kassi Dee) (CAPSLO)
Five Cities Fire Joint Powers Authority Clint Weirick and Kassi Dee
COUNCIL COMMUNICATIONS
This item gives individual Council Members the opportunity to seek consensus for scheduling a specific item on a future agenda, authorizing staff time to provide background information and prepare a staff report for a future agenda, or to comment on upcoming Council business, City operations, projects or other items of community interest.
CITY MANAGER’S REPORTS AND COMMENTS
CLOSED SESSION
None
Agenda: Grover Beach City Council Meeting Page 4
Tuesday, May 26, 2026
ADJOURNMENT
* * * * *
Per Resolution No. 17-21, the public portion of City Council meetings will be scheduled to start at 6:00 p.m. and conclude no later than 11:00 p.m. Any open session items remaining on the agenda at 11:00 p.m. that have not been discussed or considered by the City Council will be continued to an adjourned meeting of the City Council (scheduled before the next regular meeting). However, the City Council may choose to continue the meeting past 11:00 p.m. upon a proper motion and a 4/5ths vote in favor of such an action.
* * * * *
Staff reports or other written materials relating to each item of business referred to on this agenda are available from the City website www.groverbeach.org and on file in the City Clerk’s Office. A public counter copy is available for public inspection and reproduction during normal business hours at City Hall, 154 South 8th Street, Grover Beach, CA. Related materials submitted after distribution of the agenda packet are available in the City Clerk's Office during normal business hours. If you have questions regarding any agenda item, please contact the appropriate City Department. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council and distributed subsequent to distribution of the agenda packet will be made available for public inspection in the City Clerk’s Office during normal business hours. * * * * *
Note: This agenda was prepared and posted pursuant to Government Code Section 54954.2. This agenda is subject to amendment up to 72 hours prior to the date and time set for the meeting. Please refer to the agenda posted at City Hall for any revisions or call the City Clerk’s Office at (805) 473-4567 for more information.
* * * * *
The agenda and staff reports are also available on the City’s website: www.groverbeach.org
CITY OF GROVER BEACH
POLICIES AND PROCEDURES FOR CONDUCT AND DECORUM AT COUNCIL MEETINGS (Pursuant to Resolution No. 07-44, adopted 04-16-07, revised 02-18-2020) The City Council and staff welcomes and encourages civic participation and debate on issues. The Council values the public’s opinion and in every Council meeting invite and encourage the public to address the Council on any matter of interest. The Council adopted these policies and procedures for appropriate conduct and decorum at Council meetings and establish guidance for public participation during Council meetings.
These policies will foster and provide greater clarity to preserve the intent of open government and maintain a positive environment for public input and City Council decision-making.
1.0 DECORUM AND ORDER – IN GENERAL
1.1 The presiding officer is responsible for the maintenance of order and decorum at all times.
1.2 The presiding officer shall determine all points of order subject to the right of any Council member to appeal to the City Council by majority vote. If any appeal is taken, the question shall be “Shall the decision of the presiding officer be sustained” in which event a majority vote of the Council shall govern and conclusively determine such question of order.
1.3 All Council members, staff members and members of the public should speak respectfully and avoid the use of profanity, vulgarity and slanderous comments. Recognizing that the First Amendment precludes the City Council from prohibiting speakers from speaking based upon the content of their speech, the presiding officer shall use their best efforts, short of enforcement action, to remind and encourage all participating in the meeting to keep their speech respectful towards others and within bounds appropriate for children and persons of sensitivity toward course language as a courtesy to others present or otherwise viewing Council meetings.
2.0 DECORUM AND ORDER – COUNCIL MEMBERS
2.1 Manner of Speaking.
Any Council member desiring to speak shall first address the presiding officer. Upon recognition by the presiding officer, the Council member shall speak only to the question under debate.
U2.1(a) Questioning Staff.
A Council member desiring to question the staff should address his question to the City Manager, or, in appropriate cases, the City Clerk or City Attorney, who shall be entitled either to answer the inquiry or to designate some staff member for that purpose. Such a designation may be made at the time of any staff presentation or on the agenda listing for the item.
U2.1(b) Interruptions.
Once recognized, a Council member shall not be interrupted while speaking unless called to order by the presiding officer; unless a point of order is raised by another Council member, or unless the speaker chooses to yield to questions from another Council member.
3.0 DECORUM AND ORDER – STAFF
3.1 City Manager Responsibilities
The City Manager is responsible for ensuring that members of the administrative staff observe the rules of decorum and order set forth in this Policy.
3.2 AAddressing the City Council
Any administrative staff member desiring to address the City Council or members of the public shall first be recognized by the presiding officer. All remarks shall be addressed to the presiding officer and not to any individual Council Member or member of the public. Administrative staff members shall accord the utmost courtesy to the City Council, other administrative staff members and the public.
4.0 DECORUM AND ORDER – MEMBERS OF THE PUBLIC
4.1 AAddressing the City Council
Any member of the public desiring to address the City Council or members of the public shall first be recognized by the presiding officer at the appropriate place on the agenda. All remarks shall be addressed to the presiding officer and not to any individual Council Member, City Manager, City Attorney or member of the administrative staff or member of the public.
4.2 Time Limitation for Addressing the City Council
Public comment when addressing the City Council shall be generally limited to three (3) minutes per speaker. Depending on the extent of the agenda and the number of persons desiring to speak on an issue, the presiding officer may, at the beginning of the hearing, set a different time limit for each speaker. Any person may speak for a longer period of time upon approval from the presiding officer, when deemed necessary, for instance when a person is speaking on behalf of a group or has a graphic or slide presentation requiring more time.
4.3 Failure to Yield, Disruptions
Any person who refuses to relinquish the floor after their allotted time or while attending the City Council meeting engages in conduct or speech which disrupts the business of the meeting shall be brought to order and/or removed from the room if the sergeant-at-arms is so directed by the presiding officer.
Disruptive remarks from the audience, stamping of feet, clapping, whistles, yells and similar demonstrations shall not be permitted by the presiding officer who may direct the sergeant-at-arms to remove such offenders from the room.
4.4 Prosecution
Aggravated cases shall be prosecuted on appropriate complaint signed by the presiding officer.
5.0 ENFORCEMENT OF DECORUM
5.1 The Chief of Police or his designee shall be the ex-officio sergeant-at-arms of the City Council. The sergeant-at-arms shall carry out all legal and valid orders and instructions given by the presiding officer for the purpose of maintaining order and decorum in the Council Chamber. Upon instructions from the presiding officer, it shall be the duty of the sergeant-at-arms to remove any disorderly person from the Council Chambers or place the disorderly person under arrest or both.
5.2 As set forth in Government Code Section 54957.9, in the event that any meeting is willfully interrupted by a person or group of persons so as to render the orderly conduct of such meeting unfeasible or impedes the ability of the Council to hold the meeting, and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the presiding officer may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session. Duly accredited representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this Section. Nothing in this Section shall prohibit the City Council from establishing a procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting.
No Documents for this Agenda Item
Proclamation for National Foster Care Month
Agenda Item No. 1
Placement: Ceremonial
Meeting Date: May 26, 2026
No Documents for this Agenda Item
Proclamation for Pride Month
Agenda Item No. 2
Placement: Ceremonial
Meeting Date: May 26, 2026
RESOURCES DESCRIPTION
Balance from March 31, 2026 $ 6,214,703.80
Deposits 2,042,094.70
Voided Checks Check Number Date
80752 03/12/26 325.00
80858 03/25/26 2,000.00
80870 03/25/26 26.00
80867 03/25/26 26.00
Total Resources $ 8,259,175.50
EXPENSES
DESCRIPTION PERIOD ENDING CK DATE CHECK NUMBER AMOUNT
WR 04/02/26 80901-80951 566,598.19
PR 03/29/26 04/03/26 5366175-5366242 176,815.82
WR 04/09/26 80952-80995 502,696.12
WR 04/16/26 80996-81044 165,887.49
PR 04/12/26 04/17/26 5366243-5366304 176,214.85
WR 04/23/26 81045-81111 1,031,333.52
WR 04/30/26 81112-81164 594,198.06
Electronic Transfers 401,141.32
Returned Checks,Chargebacks 972.21
Credit Card Payments Service Charge 5,814.81
Total Expenditures $ 3,621,672.39
Cash Balance as of April 30, 2026 $ 4,637,503.11
Respectfully,
Nick Szamet
Administrative Services Director
CITY OF GROVER BEACH
Treasurer's Report for May 26, 2026 City Council Meeting April 1, 2026 to April 30, 2026
Agenda Item No. 3
Placement: Consent
Meeting Date: May 26, 2026
Security Name Type Par Value Trade Date Yield to Maturity Maturity City Fund Local Agency Investment Fund Inv Fund 8,380,553.19 11/30/22 0.7500% Qtr End Pooled US Bank SLGS 2,452,277.22 09/12/25 - 09/12/2999 Street Fund
CITY OF GROVER BEACH
Investment Summary
April 30, 2026
ACCOUNTS PAYABLE
CHECK DATE 04/02/2026
4/2/2026 11:59:46 AM Page 1 of 1
Refund Check Register
City of Grover Beach, CA Refund Check Detail
UBPKT01860 - Refunds 1 UBPKT01857 Disconnect
Account Name Date Check # Amount Code Receipt Amount Type 01-2510-01 DE LA ROSA, RUBEN 4/2/2026 80901 150.78 150.78 Generated From Billing Total Refunds: 1 Total Refunded Amount: 150.78
Revenue Code Summary
Revenue Code Amount
996 - UNAPPLIED CREDITS 150.78
Revenue Total: 150.78
General Ledger Distribution
Account Number Account Name Posting Amount IFT
Posting Date: 04/02/2026
Fund: 601 - Water Fund
601-000-10001-000 Claim On Cash -150.78 Yes
601-000-11110-000 Accounts Receivable Water 150.78
601 Total: 0.00
Fund: 999 - Pooled Cash
999-000-10000-000 Cash In Bank -150.78
999-000-25100-000 Due To Other Funds 150.78 Yes
999 Total: 0.00
Distribution Total: 0.00
4/2/2026 12:03:21 PM Page 1 of 1
Refund Check Register
City of Grover Beach, CA Refund Check Detail
UBPKT01863 - Refunds 2 UBPKT01862 Disconnect
Account Name Date Check # Amount Code Receipt Amount Type 02-3738-01 RICE, JEFFREY 4/2/2026 80902 15.26 15.26 Generated From Billing 02-4578-01 KNOX, ALEXANDER & KRISTIN 4/2/2026 80903 208.98 208.98 Generated From Billing Total Refunds: 2 Total Refunded Amount: 224.24
Revenue Code Summary
Revenue Code Amount
996 - UNAPPLIED CREDITS 224.24
Revenue Total: 224.24
General Ledger Distribution
Account Number Account Name Posting Amount IFT
Posting Date: 04/02/2026
Fund: 601 - Water Fund
601-000-10001-000 Claim On Cash -224.24 Yes
601-000-11110-000 Accounts Receivable Water 224.24
601 Total: 0.00
Fund: 999 - Pooled Cash
999-000-10000-000 Cash In Bank -224.24
999-000-25100-000 Due To Other Funds 224.24 Yes
999 Total: 0.00
Distribution Total: 0.00
80904
80905
80906
80907
80908
80909
80911
80912
Check Report
City of Grover Beach By Check Number
154 S. 8th Street Date Range: 04/02/2026 - 04/02/2026
Grover Beach, CA 93433
04/02/2026 ABALONE COAST ANALYTICAL INC 7181
26-0884 Invoice 03/02/2026 WATER SAMPLING – CONTRACT LAB 03/02/2026 387 26-1029 Invoice 03/10/2026 WATER SAMPLING – CONTRACT LAB 03/10/2026 1649 26-1030 Invoice 03/10/2026 WATER SAMPLING – CONTRACT LAB 03/10/2026 230 26-1031 Invoice 03/10/2026 WATER SAMPLING – CONTRACT LAB 03/10/2026 311 26-1152 Invoice 03/16/2026 WATER SAMPLING – CONTRACT LAB 03/16/2026 306 26-1174 Invoice 03/17/2026 WATER SAMPLING – CONTRACT LAB 03/17/2026 153 26-1179 Invoice 03/17/2026 WATER SAMPLING - CONTRACT LAB 03/17/2026 658 26-1180 Invoice 03/17/2026 WATER SAMPLING - CONTRACT LAB 03/17/2026 658 26-1181 Invoice 03/17/2026 WATER SAMPLING - CONTRACT LAB 03/17/2026 658 26-1182 Invoice 03/17/2026 WATER SAMPLING - CONTRACT LAB 03/17/2026 658 26-1214 Invoice 03/20/2026 WATER SAMPLING – CONTRACT LAB 03/20/2026 81 26-1264 Invoice 03/24/2026 WATER SAMPLING - CONTRACT LAB 03/24/2026 275 26-1282 Invoice 03/25/2026 WATER SAMPLING – CONTRACT LAB 03/25/2026 882 26-1346 Invoice 03/31/2026 WATER SAMPLING – CONTRACT LAB 03/31/2026 275 04/02/2026 Allweather Landscape Inc 7807.75
500542 Invoice 04/01/2026 CITY WIDE LANDSCAPE MAINTENANCE MARCH 202 7027.75 500652 Invoice 04/01/2026 ADDITIONAL CITY WIDE LANDSCAPING APRIL 2026 780 04/02/2026 AMAZON CAPITAL SERVICES 125.05
13DM-3C44-DN Invoice 03/30/2026 LOC# 114 RESTROOM STORAGE ROOM SHELVES 125.05 04/02/2026 Angello's Floor Coverings 1691.81
21749 Invoice 03/30/2026 LOC# 102 FIRE STATION STAIRCASE SKIRTING 1691.81 04/02/2026 Applied Technology Group, Inc. 23.97
rec0115840 Invoice 04/01/2026 atgchat admin phones April 2026 23.97 04/02/2026 AT&T 2735.12
000025001400 Invoice 03/30/2026 City Hall Telephones 2/25/26 - 3/24/26 2251.3 3/22/26 Invoice 04/01/2026 City Hall & PD Fax & Modem 2/22/26 - 3/21/26 483.82 04/02/2026 Bryan Millard 41
03302026 Invoice 04/01/2026 reimbursement gas Unit 209, 41 04/02/2026 Bryce Moses 15
4/6/2026 11:08:17 AM Page 1 of 7
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80923
Check Report - Detail Date Range: 04/02/2026 - 04/02/2026 03092026 Invoice 04/01/2026 reimburse for parking training 3/29/26 UAS 15 04/02/2026 Capital Industrial Medical Supply Co. 196.52 177798 Invoice 03/26/2026 CORP YARD SAFETY CABINET SUPPLIES 196.52 04/02/2026 Christopher Staley 2000
26-002 Invoice 03/25/2026 IA Investigation 2000
04/02/2026 Complete Paperless Solutions LLC 2092.05
4799 Invoice 04/01/2026 Laserfiche annual support 4/30/26 to 4/29/27 2092.05 04/02/2026 COUNTY OF SAN LUIS OBISPO ENVIRONMENTAL HEALTH SER 627 IN162005 Invoice 03/23/2026 HAZARDOUS MATERIALS HANDLER & SURCHARGE 627 04/02/2026 DE LAGE LANDEN 108.74
596404615 Invoice 04/01/2026 Laserfiche lease April 2026 108.74 04/02/2026 Deltina Coffee Roasters 250
11431 Invoice 01/09/2026 COFFEE FOR PW OFFICES 125
11489 Invoice 03/25/2026 COFFEE FOR CORP YARD & PW OFFICE 125 04/02/2026 Diane Andrews 325
1619 LAGUNA Invoice 03/11/2026 1619 LAGUNA COURT RETROFIT REBATES 325 04/02/2026 FlexTG LLC 294.14
4614135-cal Invoice 04/01/2026 copier usage Records 99.7 4614136-cal Invoice 04/01/2026 copier usage Cannabis 2/13/26 to 3/12/26 65.09 4614189-CAL Invoice 03/30/2026 SharpBP-70C45 2/22/26 - 3/21/26 129.35 04/02/2026 FRANCHISE TAX BOARD 50
INV0003980 Invoice 04/03/2026 Franchise Tax Board Garnishment 50 04/02/2026 GRAINGER 666.7
9849814299 Invoice 03/20/2026 TOOLS FOR PW TRUCK # 228 160.71 9849992277 Invoice 03/20/2025 TOOLS FOR PW TRUCK # 227 296.33 9855300035 Invoice 03/25/2026 SAFETY MASKS FOR SPRAYING 47.89 9855300043 Invoice 03/25/2026 SAFETY MASKS FOR SPRAYING 42.94 9856667697 Invoice 03/26/2026 LOC# 107 REMOTE FOR CORP YARD GATE 118.83 04/02/2026 GROVER BEACH POLICE OFFICERS ASSOC. 1320
INV0003957 Invoice 04/03/2026 POA Dues 60
INV0003958 Invoice 04/03/2026 POA Dues 60
INV0003959 Invoice 04/03/2026 POA Dues 60
INV0003960 Invoice 04/03/2026 POA Dues 60
4/6/2026 11:08:17 AM Page 2 of 7
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80929
Check Report - Detail Date Range: 04/02/2026 - 04/02/2026 INV0003961 Invoice 04/03/2026 POA Dues 60
INV0003962 Invoice 04/03/2026 POA Dues 60
INV0003963 Invoice 04/03/2026 POA Dues 60
INV0003964 Invoice 04/03/2026 POA Dues 60
INV0003965 Invoice 04/03/2026 POA Dues 60
INV0003966 Invoice 04/03/2026 POA Dues 60
INV0003967 Invoice 04/03/2026 POA Dues 60
INV0003968 Invoice 04/03/2026 POA Dues 60
INV0003969 Invoice 04/03/2026 POA Dues 60
INV0003970 Invoice 04/03/2026 POA Dues 60
INV0003971 Invoice 04/03/2026 POA Dues 60
INV0003972 Invoice 04/03/2026 POA Dues 60
INV0003973 Invoice 04/03/2026 POA Dues 60
INV0003974 Invoice 04/03/2026 POA Dues 60
INV0003975 Invoice 04/03/2026 POA Dues 60
INV0003976 Invoice 04/03/2026 POA Dues 60
INV0003977 Invoice 04/03/2026 POA Dues 60
INV0003978 Invoice 04/03/2026 POA Dues 60
04/02/2026 Hacienda Gardening 495
HG96588 Invoice 03/31/2026 CITY WIDE GOPHER TRAPPING MARCH 2026 495 04/02/2026 J.B. DEWAR INC. 1461.34
460537 Invoice 04/01/2026 Gasoline charges for PW vehicles 1461.34 04/02/2026 Leonardo Sotelo 87
2001252.002 Invoice 04/01/2026 2001252.002 16th 3/19/26 SoteloL SDRfd 87 04/02/2026 Matthew Marron 87
2001253.002 Invoice 04/01/2026 2001253.002 16th 3/28/26 MarronM SDRfd 87 04/02/2026 MINERS HARDWARE 1391.8
581822 Invoice 03/04/2026 MENTONE SIDEWALK REPAIRS 19.56 581843 Invoice 03/04/2026 LOC# 107 CORP YARD SUPPLIES 54.36 581868 Invoice 03/04/2026 GENERAL PUBLIC WORKS SUPPLIES 21.74 581908 Invoice 03/05/2026 LOC# 112 MENTONE PARK REPAIR SUPPLIES 9.78 581965 Invoice 03/05/2026 PAINT FOR GENERATOR 36.45
582008 Invoice 03/06/2026 GENERAL WATER DEPT SUPPLIES 176 582353 Invoice 03/11/2026 LOC# 107 CORP YARD SUPPLIES 17.38 582377 Invoice 03/12/2026 SAN DIEGO LOOP WATER LINE REPAIRS 17.35 4/6/2026 11:08:17 AM Page 3 of 7
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80933
Check Report - Detail Date Range: 04/02/2026 - 04/02/2026 582382 Invoice 03/12/2026 CORP YARD GENERAL SUPPLIES 93.5 582386 Invoice 03/12/2026 SAN DIEGO LOOP WATER LINE REPAIRS 6.5 582419 Invoice 03/12/2026 LOC# 107 CORP YARD GENERAL SUPPLIES 16.3 582436 Invoice 03/12/2026 WATER DEPT STOCK SUPPLIES 17.35 582610 Invoice 03/16/2026 LOC# 107 CORP YARD GENERAL SUPPLIES 55.98 582653 Invoice 03/16/2026 LOC# 107 CORP YARD GENERAL SUPPLIES 144.63 582657 Invoice 03/16/2026 401 W GRAND AVENUE WATER LINE SUPPLIES 59.69 582658 Invoice 03/16/2026 PARKS TRUCK GENERAL SUPPLIES 33.67 582732 Invoice 03/17/2026 MENTONE SIDEWALK REPAIRS 16.27 582824 Invoice 03/18/2026 LOC# 107 CORP YARD GENERAL SUPPLIES 26.08 582832 Invoice 03/31/2026 PARTS FOR COMPRESSOR 15.2
582893 Invoice 03/19/2026 LOC# 107 CORP YARD GENERAL SUPPLIES 26.03 582902 Invoice 03/19/2026 GRAND AVENUE TREE SUPPLIES 25.64 582992 Invoice 03/20/2026 16TH RESTROOM / SEWER JETTER 10.85 583183 Invoice 03/24/2026 LOC# 107 CORP YARD BREAKROOM SUPPLIES 44.66 583194 Invoice 03/24/2026 LOC# 107 TRAILER OFFICE EXTERIOR SUPPLIES 48.48 583207 Invoice 04/01/2026 led light, cable ties 21.73
583213 Invoice 03/24/2026 LOC# 107 CORP YARD GENERAL SUPPLIES 19.55 583253 Invoice 03/25/2026 PARTS FOR PW TRUCK # 300 16.5 583296 Invoice 04/01/2026 bags 32.6
583317 Invoice 03/26/2026 SIDEWALK REPAIR SUPPLIES 14TH & ROCKAWAY 21.93 583335 Invoice 03/26/2026 SIDEWALK REPAIR SUPPLIES 14TH & ROCKAWAY 21.04 583336 Invoice 03/26/2026 SIDEWALK REPAIR SUPPLIES 14TH & ROCKAWAY 14.13 583382 Invoice 03/26/2026 PARTS FOR PW TRUCK # 300 7.6
583632 Invoice 03/30/2026 PW MARKOUT PAINT FOR UTILITIES 10.86 643631 Invoice 03/12/2026 LOC# 105 RAMONA CENTER GENERAL SUPPLIES 20.65 644191 Invoice 03/23/2026 LOC# 116 SKATE PARK GENERAL SUPPLIES 26.09 644435 Invoice 03/27/2026 GENERAL PUBLIC WORKS SUPPLIES 52.18 K82172 Invoice 03/09/2026 DUTY IPAD CHARGING CABLE 16.3 K82178 Invoice 03/09/2026 GENERAL PARK SUPPLIES 75.92
K82203 Invoice 03/10/2026 LOC# 107 CORP YARD GENERAL SUPPLIES 23.9 k82308 Invoice 04/01/2026 spray paint range 17.37
04/02/2026 MISSION LINEN SUPPLY SAP #110035 232.64
142255568 Invoice 04/01/2026 142255568 3/12/26 Mat & Mop servies 232.64 04/02/2026 Nichols Consulting 3300
4/6/2026 11:08:17 AM Page 4 of 7
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80944
Check Report - Detail Date Range: 04/02/2026 - 04/02/2026 2026-9840344-0 Invoice 04/01/2026 State Mandated Cost period ending 6/30/26 3300 04/02/2026 O'REILLY'S AUTOMOTIVE INC 210.3
3025-124095 Invoice 03/25/2026 PW SAFETY EQUIPMENT 53.74 3025-124173 Invoice 03/25/2026 PARTS FOR FORKLIFT & MOWER 83.81 3025-124623 Invoice 04/01/2026 Unit 221, bed coating, washer pump, wiper fld 72.75 04/02/2026 Peak WiFi.com 7334.9
14202.801109 Invoice 04/01/2026 Video Wall Cannabis April 2026 295 15983.801545 Invoice 04/01/2026 45 newport internet April 2026 69.95 2026-04-15462 Invoice 04/01/2026 NITRATE PLANT INTERNET SERVICES APRIL 2026 69.95 9433.800556 Invoice 04/01/2026 Network services April 2026 6900 04/02/2026 PROCARE JANITORIAL SUPPLY 687.25
191407 Invoice 03/11/2026 LOC# 112 MENTONE PARK JANITORIAL SUPPLIES 38.46 191408 Invoice 03/11/2026 LOC# 110 HERO PARK JANITORIAL SUPPLIES 38.46 191409 Invoice 03/11/2026 LOC# 109 16TH STREET PARK JANITORIAL SUPPLIE 38.46 191441 Invoice 03/12/2026 LOC# 112 MENTONE PARK JANITORIAL SUPPLIES 35.51 191442 Invoice 03/12/2026 LOC# 109 16TH STREET PARK JANITORIAL SUPPLIE 35.51 191640 Invoice 03/19/2026 LOC# 107 CORP YARD JANITORIAL SUPPLIES 217.08 191641 Invoice 03/24/2026 LOC# 107 CORP YARD JANITORIAL SUPPLIES 283.77 04/02/2026 Public Safety Development Group 600
1030 Invoice 04/01/2026 reg fee Basanese, LeVeque Adv Peer Counsel 600 04/02/2026 SAN LUIS OBISPO CO SHERIFF'S OFFICE 339633
136-907 Invoice 04/01/2026 Dispatch Services FY 25/26 payment 2 of 2 339633 04/02/2026 SAN LUIS OBISPO COUNTY SHERIFF-CORONER / CRIME LAB 142 cs-0126096 Invoice 04/01/2026 drug testing 2 cases 142
04/02/2026 San Luis Obispo County Sherrif 731.19
INV0003981 Invoice 04/03/2026 Employee Garnishment 731.19 04/02/2026 Santa Maria Motorcycles LLC 314.08
20065511 Invoice 04/01/2026 Unit 214, oil change 314.08 04/02/2026 Shawna Webb 87
2001251.002 Invoice 04/01/2026 2001251.002 R3709 16th 3/29/26 Webb SDRfd 87 04/02/2026 Siteone Landscape Supply, LLC 11.11
163811071-001 Invoice 03/25/2026 LOC# 112 MENTONE PARK IRRIGATION SUPPLIES 11.11 04/02/2026 SOUTH SAN LUIS OBISPO CO. SANITATION DISTRICT 139275.86 4/6/2026 11:08:17 AM Page 5 of 7
80945
80946
80947
80948
80949
80950
80951
Check Report - Detail Date Range: 04/02/2026 - 04/02/2026 INV0003985 Invoice 03/31/2026 Pass thru Feb 26 139275.86 04/02/2026 SpeakWrite Billing Department 6.09
7dc8552d Invoice 04/01/2026 dictation services March 2026 6.09 04/02/2026 STATE DISBURSEMENT UNIT 250
INV0003979 Invoice 04/03/2026 Employee Garnishment 250
04/02/2026 The Regional Training Center 185
zbg-494-qgz Invoice 04/01/2026 reg fee Rhyne UAS Crowd Manage 8/24/26 185 04/02/2026 UNITED STAFFING ASSOCIATES, LLC 1419.84
265459 Invoice 03/25/2026 A. NUSSER ADMIN ASSISTANT WEEK OF 03/22/2026 1419.84 04/02/2026 Versaterm Public Safety US, Inc 2501.41
inv41-03853 Invoice 04/01/2026 Blue Team, IAPRO suport 5/1/26 to 4/30/27 2501.41 04/02/2026 WALLACE GROUP 37228.51
67383 Invoice 03/31/2026 CIP 5002-2 CONST. MGMT. SERVICES THROUGH FE 37228.51 04/02/2026 William Russ 1000
03202026 Invoice 04/01/2026 Grover Beach Night Out Emcee 8/1/26 1000 4/6/2026 11:08:17 AM Page 6 of 7
Discount
0.00 0.00
0.00 0.00
0.00 0.00
Check Report - Summary Date Range: 04/02/2026 - 04/02/2026 All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Count Payment
Regular Checks 137 44 566,223.17
Manual Checks 0 0 0.00
Voided Checks 0 0 0.00
Bank Drafts 0 0 0.00
EFT's 0 0 0.00
137 44 566,223.17
4/6/2026 11:08:17 AM Page 7 of 7
ACCOUNTS PAYABLE
CHECK DATE 04/09/2026
80952
80953
80954
80955
80956
80957
80958
80959
80960
80961
80962
Check Report
City of Grover Beach By Check Number
154 S. 8th Street Date Range: 04/09/2026 - 04/09/2026
Grover Beach, CA 93433
04/09/2026 4Creeks Inc 1463
4C109966 Invoice 03/23/2026 547 NEWPORT PC#3 SITE/IMPROV. PLAN REVIEW F 599 4C109967 Invoice 03/23/2026 923 MENTONE PC#2 SITE/IMPROV. PLAN REVIEW F 180 4C109968 Invoice 03/23/2026 664 LONG BRANCH PC#1 SITE/IMPROV. PLAN FEB 2 180 4C109969 Invoice 03/23/2026 1112 SEABRIGHT AVE PC#5 SITE/IMPROV PLAN FEB 180 4C109970 Invoice 03/23/2026 1591-1601 FARROLL PC#1 SITE/IMPROV PLAN FEB 2 324 04/09/2026 AGP Video 2475
INV0003986 Invoice 04/02/2026 AGP Video_Inv 9919-R_PC and CC Mtgs_3-10-2026 2475 04/09/2026 Alexander's Contract Services 3580.8
202604060016 Invoice 04/06/2026 METER READING SERVICES 04/03/2026 - 04/06/2026 3580.8 04/09/2026 AMAZON CAPITAL SERVICES 196.29
13DM-3C44--DX Invoice 04/07/2026 Black Ink Cartridge 71.09 1L4R-D7DJ-1JT Invoice 04/07/2026 Black Toner Cartridge 97.85 CM0000190 Credit Memo 04/07/2026 Credit for return of Imaging Drum -54.04 INV0003987 Invoice 04/02/2026 Amazon_Inv 1DSJH-QQMX-M3YW_supplies_3-30-26 81.39 04/09/2026 Brand Creative 487.02
434 Invoice 04/08/2026 A-Frame with swapable panels 307.75 453 Invoice 04/08/2026 3 polo shirts Negotiator 179.27
04/09/2026 BURKE AND PACE OF ARROYO GRANDE INC 38.08
2603-047104 Invoice 03/27/2026 WOOD FOR PW TRAILER REPAIR 38.08 04/09/2026 CANNON CORP 38762
95356 Invoice 03/11/2026 STAFF AUGMENTATION CM SERVICES FEB 2026 38762 04/09/2026 Capital Industrial Medical Supply Co. 30.99
INV0003988 Invoice 04/02/2026 CI Med Supplies_Inv 177796_3-26-26 30.99 04/09/2026 Charter Communications 553.41
1705846010321 Invoice 04/07/2026 City Facilities - Internet Charges 3/21/26-4/20/26 553.41 04/09/2026 CITY OF PASO ROBLES 3180
INV0003991 Invoice 04/02/2026 Paso Robles_Phase 3 RFP_2-27-2026 3180 04/09/2026 CONFLUENCE ENGINEERING SOLUTIONS, INC 4251.25 1385 Invoice 03/13/2026 DDW COMPLIANCE SUPPORT 02/01/2026 - 02/28/202 1510 4/10/2026 10:50:48 AM Page 1 of 5
80963
80964
80965
80966
80967
80968
80969
80970
80971
80972
80973
80974
80975
Check Report - Detail Date Range: 04/09/2026 - 04/09/2026 1391 Invoice 03/31/2026 DDW COMPLIANCE SUPPORT 03/01/2026-03/31/2026 2741.25 04/09/2026 Conner Spears 600
202314 Invoice 04/08/2026 upd apx next programming 600
04/09/2026 COUNTY OF SAN LUIS OBISPO ENVIRONMENTAL HEALTH SER 1512.9 IN164437 Invoice 03/31/2026 BACKFLOW PREVENTION PROGRAM SERVICES MA 1512.9 04/09/2026 Culligan San Paso/Culligan Santa Maria 123.75 133069 Invoice 04/08/2026 bottled water March 2026 123.75 04/09/2026 DATAPROSE LLC 2478.41
DP2601565 Invoice 04/07/2026 Utility Biling March 2026 2478.41 04/09/2026 Deltina Coffee Roasters 125
INV0003989 Invoice 04/02/2026 Deltina_Inv 11430_supplies_1-7-2026 62.5 INV0003990 Invoice 04/02/2026 Deltina_Inv 11474_supplies_2-27-26 62.5 04/09/2026 Digital West 330
132763401-001 Invoice 04/07/2026 April 2026-Internet for 933 Ramona 165 132766501-001 Invoice 04/07/2026 April 2026-Internet for 1230 Trouville 165 04/09/2026 Fastenal Company 159.84
CABAR135982 Invoice 03/31/2026 PW SAFETY SUPPLIES 159.84 04/09/2026 Five Cities Chevron 315
March2026 Invoice 04/08/2026 car washes 315
04/09/2026 GRAINGER 337.52
9860815696 Invoice 03/30/2026 PW SAFETY SUPPLIES 169.52 9860909937 Invoice 03/30/2026 PW SAFETY SUPPLIES 168
04/09/2026 J.B. DEWAR INC. 3078.97
460536 Invoice 04/08/2026 gast stmt 3/20/26 to 3/31/26 3078.97 04/09/2026 JTS INC 350
909458 Invoice 04/02/2026 WEST GRAND AVENUE TREE REMOVAL 350 04/09/2026 KIMBALL MIDWEST 425
104326661 Invoice 03/31/2026 TOOLS & CLEANING SUPPLIES FOR CORP YARD & S 272.65 104326668 Invoice 03/31/2026 TOOL FOR PW TRUCK # 233 152.35 04/09/2026 LEE WILSON ELECTRIC CO. INC 3185.05
2512 Invoice 01/01/2026 TRAFFIC SIGNAL MAINTENANCE DECEMBER 2025 1020 3913 Invoice 02/28/2026 VARIOUS SIGNAL CALL OUTS FEBRUARY 2026 2165.05 4/10/2026 10:50:48 AM Page 2 of 5
80976
80977
80978
80979
80980
80981
80982
80983
80984
80985
80986
80987
80988
Check Report - Detail Date Range: 04/09/2026 - 04/09/2026 04/09/2026 LexisNexis Risk Data Management, Inc. 982.74 1100284013 Invoice 04/08/2026 AVCC subscrip Cannabis March 2025 982.74 04/09/2026 Michael K. Nunley & Associates, Inc. 9535.5
3037 Invoice 04/07/2026 ASSET MANAGEMENT PROF. SERVICES MARCH 202 2290.5 3040 Invoice 04/07/2026 WW EVALUATION UPDATE PROF. SERVICES MARCH 7245 04/09/2026 MIER BROS LANDSCAPE PRODUCTS 598.12
399991 Invoice 03/27/2026 STOCK SACK CONCRETE 299.06
399998 Invoice 03/27/2026 STOCK SACK CONCRETE 299.06
04/09/2026 Office Depot 700.79
459068779-001 Invoice 04/08/2026 shredder oil, post it, mouse 113.72 459074710-001 Invoice 04/08/2026 packing tape 22.8
459074731-001 Invoice 04/08/2026 coin fingertips 12.28
459074739-001 Invoice 04/08/2026 tissue 15.67
459074743-001 Invoice 04/08/2026 coin envelopes 21.16
462624821-001 Invoice 03/31/2026 PW CORP YARD OFFICE SUPPLIES 515.16 04/09/2026 PHOENIX GROUP INFORMATION SYSTEMS 973.76
022026203 Invoice 04/08/2026 citation services Feb 2026 973.76 04/09/2026 SAN LUIS OBISPO CO SHERIFF'S OFFICE 4600
136-912 Invoice 04/08/2026 Bomb Task Force Contribution FY 25/26 4600 04/09/2026 Service 1st 166.23
72730 Invoice 04/08/2026 Annual Comp fee, rept McKibben 166.23 04/09/2026 SLO Auto Parts Inc 72.98
048736 Invoice 03/31/2026 DETAIL SUPPLIES FOR PW TRUCK # 228 72.98 04/09/2026 SM TIRE INC. 335.94
535210 Invoice 03/27/2026 PARTS & LABOR FOR PW TRUCK # 228 335.94 04/09/2026 SOUZA CONSTRUCTION INC. 373616.51
22826 Invoice 03/05/2026 CIP 5002-2 CONSTRUCTION THROUGH FEB 2026 373616.51 04/09/2026 SP MAINTENANCE SERVICES INC. 2769.2
101156 Invoice 03/31/2026 CITY WIDE STREET SWEEPING SERVICES MAR 202 2769.2 04/09/2026 SUN RIDGE SYSTEMS, INC. 22560
9125 Invoice 04/08/2026 Annual RMS Support 5/24/26 to 5/23/27 22560 04/09/2026 Tripepi, Smith & Associates, Inc. 7168.69
4/10/2026 10:50:48 AM Page 3 of 5
80989
80990
80991
80992
80993
80994
80995
Check Report - Detail Date Range: 04/09/2026 - 04/09/2026 INV0003992 Invoice 04/02/2026 Tripeppi Smith_Inv 16790_march retainer_3-15-2026 7168.69 04/09/2026 Troesh Recycling Inc. DBA Roxsand 37.6
54929 Invoice 03/26/2026 CONCRETE SPOILS 37.6
04/09/2026 Tyler Technologies, Inc 2000
025-544346 Invoice 04/09/2026 EPL Data conversion Feb 2026 1000 025-546843 Invoice 04/09/2026 EPL Data Conversion March 2026 500 025-547604 Invoice 04/09/2026 EPL Data conversion March 2026 500 04/09/2026 Ultrex Management Services LLC 138.57
4542775-CAL Invoice 04/07/2026 SharpBP-70C45 11/22/25 - 12/21/25 138.57 04/09/2026 Verdin Marketing Ink, Co. 3853.75
INV0003993 Invoice 04/02/2026 Verdin_Inv 12809_tech fees_2-28-2026 3853.75 04/09/2026 VERIZON WIRELESS 2929.03
6139577455 Invoice 04/08/2026 phone stmt 2/27/26 to 3/26/26 2845.31 6139577456 Invoice 04/07/2026 Verizon charges 2/27/26-3/26/26 83.72 04/09/2026 Vital Records Holdings, LLC 196.93
6202931 Invoice 04/08/2026 March 2026 - Document Storage 196.93 04/09/2026 WALLACE GROUP 1420.5
67314 Invoice 03/31/2026 FOG PROGRAM FY 2025-2026 PROF. SERVICES FEB 1420.5 4/10/2026 10:50:48 AM Page 4 of 5
Discount
0.00 0.00
0.00 0.00
0.00 0.00
Check Report - Summary Date Range: 04/09/2026 - 04/09/2026 All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Payment Count
Regular Checks 68 44 502,696.12
Manual Checks 0 0 0.00
Voided Checks 0 0 0.00
4/10/2026 10:50:48 AM Page 5 of 5
Bank Drafts 0 0 0.00
EFT's 0 0 0.00
68 44 502,696.12
ACCOUNTS PAYABLE
CHECK DATE 04/16/2026
80996
80997
80998
80999
81000
81001
81002
81003
81004
81005
81006
81007
81008
4/16/2026 4:17:17 PM Page 1 of 9
8423 Invoice 04/14/2026 Equipment for Tahoe's 3000
8447 Invoice 04/14/2026 Equipment for Tahoe's 3000
04/16/2026 ENTERPRISE RENT-A-CAR ATTN: ACCTS RECEIVABLE 206.22 04/16/2026 DIVISION OF THE STATE ARCHITECT ATTN: SB 1186 531.2 QTR 1-2026 Invoice 04/14/2026 QTR 1 2026 - DSA 1/1/26-3/31/26 531.2 04/16/2026 DRIVE CUSTOMS 6000
INV0004031 Invoice 04/14/2026 Carmel&Naccasha_Inv 66449_Legal_4-13-2026 119.5 04/16/2026 Deckard Technologies, Inc. 19238.65
INV-0056 Invoice 03/12/2026 STR SOFTWARE PLATFORM 19238.65 04/16/2026 Burdine Printing 10.88
INV0004022 Invoice 04/14/2026 Burdine_Inv 54035_name tag_4-7-2026 10.88 04/16/2026 CARMEL & NACCASHA LLP 119.5
041326 Invoice 04/14/2026 per diem meals Tactical Analysis 5/4/26 SB 348 04/16/2026 Bradley Smith 87
2001259.002 Invoice 04/15/2026 2001259.002 R3731 16th 4/4/26 SmithB SDRfd 87 04/16/2026 AUTO ZONE INC 61.15
04021262477 Invoice 04/14/2026 Unit 215, oil, filter 61.15 04/16/2026 Basanese, Michaela 348
INV0004021 Invoice 04/14/2026 Amazon_Inv 1MW3-1QJT-7JYH_4-8-26 45.74 04/16/2026 Amber Nelson 87
2001258.002 Invoice 04/15/2026 2001258.002 R3730 GHUp 3/21/26 NelsonA SDRfd 87 7616 Invoice 04/03/2026 Gen Admin & Labor Compliance 23A-CDBG-20008 Mar 5000 7617 Invoice 04/03/2026 CDBG Application Preparation 14500 04/16/2026 AMAZON CAPITAL SERVICES 45.74
04/16/2026 ADAMS ASHBY GROUP LLC 26937.5
7574 Invoice 03/20/2026 Gen Admin & Labor Compliance 23A-CDBG-20008 Feb 5000 7575 Invoice 03/20/2026 General Admin 24-CDBG-10010 February 2437.5 Check Report
City of Grover Beach By Check Number
154 S. 8th Street Date Range: 04/16/2026 - 04/16/2026
Grover Beach, CA 93433
04/16/2026 5Cities Homeless Coalition 450
2001256.002 Invoice 04/15/2026 2001256.002 3778 Ramona 4/10/26 SDRfd 450 81009
81010
81011
81013
81014
81015
4/16/2026 4:17:17 PM Page 2 of 9
04/16/2026 INTERNATIONAL CODE COUNCIL INC. ATTN: MEMBERSHIP 170 Q15.00041410 Invoice 02/11/2026 Governmental Member <50K population 170 04/16/2026 J.B. DEWAR INC. 3710.52
INV0004074 Invoice 04/17/2026 POA Dues 60
04/16/2026 Hinderliter DeLlamas & Associates 300
sin061922 Invoice 04/14/2026 Cannabis audit March Hive Lab Urbn Leaf 300 INV0004070 Invoice 04/17/2026 POA Dues 60
INV0004071 Invoice 04/17/2026 POA Dues 60
INV0004072 Invoice 04/17/2026 POA Dues 60
INV0004073 Invoice 04/17/2026 POA Dues 60
INV0004066 Invoice 04/17/2026 POA Dues 60
INV0004067 Invoice 04/17/2026 POA Dues 60
INV0004068 Invoice 04/17/2026 POA Dues 60
INV0004069 Invoice 04/17/2026 POA Dues 60
INV0004062 Invoice 04/17/2026 POA Dues 60
INV0004063 Invoice 04/17/2026 POA Dues 60
INV0004064 Invoice 04/17/2026 POA Dues 60
INV0004065 Invoice 04/17/2026 POA Dues 60
INV0004058 Invoice 04/17/2026 POA Dues 60
INV0004059 Invoice 04/17/2026 POA Dues 60
INV0004060 Invoice 04/17/2026 POA Dues 60
INV0004061 Invoice 04/17/2026 POA Dues 60
INV0004054 Invoice 04/17/2026 POA Dues 60
INV0004055 Invoice 04/17/2026 POA Dues 60
INV0004056 Invoice 04/17/2026 POA Dues 60
INV0004057 Invoice 04/17/2026 POA Dues 60
INV0004076 Invoice 04/17/2026 Franchise Tax Board Garnishment 50 04/16/2026 GROVER BEACH POLICE OFFICERS ASSOC. 1320
INV0004053 Invoice 04/17/2026 POA Dues 60
4623394-CAL Invoice 04/15/2026 Black Toner 15
46277294-cal Invoice 04/15/2026 copier usage Cannabis 3/13/26 to 4/12/26 40.52 04/16/2026 FRANCHISE TAX BOARD 50
Check Report - Detail Date Range: 04/16/2026 - 04/16/2026 INV0004023 Invoice 04/14/2026 Enterprise_Inv 41517273_meeting_3-30-2026 206.22 04/16/2026 FlexTG LLC 55.52
81016
81017
81018
81019
81020
81021
81022
81023
81024
81025
81026
81027
81028
INV0004075 Invoice 04/17/2026 Employee Garnishment 250
04/16/2026 The Counseling Team International 1196
4/16/2026 4:17:17 PM Page 3 of 9
04/16/2026 SANDY MERSHON 49.66
Reimb.Sandy.T Invoice 04/15/2026 Reimb.Sandy.TT.41526 Tiny Tots Supplies Reimb 49.66 04/16/2026 STATE DISBURSEMENT UNIT 250
04/16/2026 San Luis Obispo County Sherrif 727.93
INV0003937 Invoice 04/03/2026 Garnishment 25.53
INV0004077 Invoice 04/17/2026 Garnishment 702.4
INV0004026 Invoice 04/14/2026 New Times_Inv 391284_newsaper ad_4-2-2026 421 04/16/2026 Primo Brands Blue Triton Brands Inc 254.54
06C090002527 Invoice 04/14/2026 March 2026- Bottled water for City Hall 254.54 4/1/26 Invoice 04/09/2026 April 2026 - Employee Insurance Premiums 6777.73 04/16/2026 New Times 718
INV0004025 Invoice 04/14/2026 New Times_Inv 390951_newspaper ad_3-26-2026 297 04/16/2026 Med-Stops Medical Clinic, Inc 327
INV0004024 Invoice 04/14/2026 MedStop_Inv 3316_TBartolome_3-31-2026 327 04/16/2026 Metropolitan Life Isurance Company 6777.73
2001254.002 Invoice 04/15/2026 2001254.002 120
04/16/2026 Mark Wilson 87
2001257.002 Invoice 04/15/2026 2001257.002 R3788 GHUp 4/4/26 WilsonM SDRfd 87 04/16/2026 LG2WB Engineers Inc 7892
24892-00107 Invoice 03/10/2026 TRAFFIC ENGINEERING SERVICES 7892 04/16/2026 Lorrie Lozano 120
PC8004 Invoice 03/09/2026 Building Inspections 5559.93
04/16/2026 LaVern Shrode 87
2001260.002 Invoice 04/15/2026 2001260.002 3693 GHUp 3/29/26 Shrode SDRfd 87 04/16/2026 JAS PACIFIC 48181.18
BI 15293 Invoice 02/11/2026 Building Inspector 25217.5
BI 15333 Invoice 03/09/2026 BUILDING INSP SERVICES 17403.75 Check Report - Detail Date Range: 04/16/2026 - 04/16/2026 462796 Invoice 04/14/2026 gas stmt 4/1/26 to 4/10/26 2580.39 462797 Invoice 04/14/2026 car wash 14.79
462798 Invoice 04/14/2026 Gasoline for PW vehicles 1115.34 81029
81030
81031
114-0333740-50 Invoice 04/15/2026 Employee Credit Card Charges 32.6 114-5585932-94 Invoice 04/15/2026 Employee Credit Card Charges 63.07 4/16/2026 4:17:17 PM Page 4 of 9
112-2690990-08 Invoice 04/15/2026 Employee Credit Card Charges 365.1 112-3603399-39 Invoice 04/15/2026 Employee Credit Card Charges 1271.67 112-5762085-36 Invoice 04/15/2026 Employee Credit Card Charges 17.39 112-9392614-95 Invoice 04/15/2026 Employee Credit Card Charges 10.74 111-5805274-73 Invoice 04/15/2026 Employee Credit Card Charges 170.59 111-7774040-07 Invoice 04/15/2026 Employee Credit Card Charges 77.2 111-7774040-07 Invoice 04/15/2026 Employee Credit Card Charges 55.45 111-9581224-84 Invoice 04/15/2026 Employee Credit Card Charges 102.42 111-1126166-99 Invoice 04/15/2026 Employee Credit Card Charges 9.96 111-3357207-17 Invoice 04/15/2026 Employee Credit Card Charges 8.69 111-3357207-17 Invoice 04/15/2026 Employee Credit Card Charges 24.99 111-3466933-07 Invoice 04/15/2026 Employee Credit Card Charges 206.61 060327 Invoice 04/15/2026 Employee Credit Card Charges 44.23 06apr26 Invoice 04/15/2026 Employee Credit Card Charges 231.2 10663711-8583 Invoice 04/15/2026 Employee Credit Card Charges 350 1107128 Invoice 04/15/2026 Employee Credit Card Charges 429 031226CPRS T Invoice 04/15/2026 Employee Credit Card Charges 21.94 035224 Invoice 04/15/2026 Employee Credit Card Charges 22.65 041871 Invoice 04/15/2026 Employee Credit Card Charges 119.61 046768 Invoice 04/15/2026 Employee Credit Card Charges 23.8 0291821 Invoice 04/15/2026 Employee Credit Card Charges 220 031026 meal Invoice 04/15/2026 Employee Credit Card Charges 17.68 031226 CPRS M Invoice 04/15/2026 Employee Credit Card Charges 24.77 031226 CPRSM Invoice 04/15/2026 Employee Credit Card Charges 9.55 04/16/2026 US BANK CORPORATE PAYMENT SYSTEMS 24229.75
021926 Invoice 04/15/2026 Employee Credit Card Charges 595 0225026 Invoice 04/15/2026 Employee Credit Card Charges 82.99 04/16/2026 UNITED STAFFING ASSOCIATES, LLC 2775.79
265747 Invoice 04/01/2026 A. NUSSER ADMIN. ASSISTANT WEEK OF 03/29/2026 1355.95 266034 Invoice 04/08/2026 A. NUSSER ADMIN. ASSISTANT WEEK OF 04/05/2026 1419.84 eb-000392 Invoice 04/14/2026 reg fee Gerber, Munro, Millard, Douglas 8/18/26 1196 04/16/2026 Tripepi, Smith & Associates, Inc. 7168.69
INV0004036 Invoice 04/15/2026 Tripepi Smith_Inv 16566_Retainer-February_2-15-26 7168.69 Check Report - Detail Date Range: 04/16/2026 - 04/16/2026 CPRS Travel M Invoice 04/15/2026 Employee Credit Card Charges 5.75 CRWA EXPO 2 Invoice 02/26/2026 Employee Credit Card Charges 1785 CRWA EXPO 2 Credit Memo 02/27/2026 Employee Credit Card Charges -610 4/16/2026 4:17:17 PM Page 5 of 9
CPRS GASOLI Invoice 04/15/2026 Employee Credit Card Charges 46.21 CPRS Meals Invoice 04/15/2026 Employee Credit Card Charges 19.02 CPRS Travel Invoice 04/15/2026 Employee Credit Card Charges 17.34 CPRS Travel M Invoice 04/15/2026 Employee Credit Card Charges 20.75 CONFERENCE Invoice 04/15/2026 Employee Credit Card Charges 16.7 CPRS Breakfas Invoice 04/15/2026 Employee Credit Card Charges 15.35 CPRS DINNER Invoice 04/15/2026 Employee Credit Card Charges 26.98 CPRS Fuel Invoice 04/15/2026 Employee Credit Card Charges 50.99 april2026 Invoice 04/15/2026 Employee Credit Card Charges 4.99 bby01-8071550 Invoice 04/15/2026 Employee Credit Card Charges 437.91 c53116841p981 Invoice 04/15/2026 Employee Credit Card Charges 956 ch249934975JS Invoice 04/15/2026 Employee Credit Card Charges 32.65 7338371793007 Invoice 04/15/2026 Employee Credit Card Charges 231.2 7-ELEVEN 15.8 Invoice 03/13/2026 Employee Credit Card Charges 15.85 8592364 Invoice 04/15/2026 Employee Credit Card Charges 57.68 996957679 Invoice 04/15/2026 Employee Credit Card Charges 126.28 607500006662 Invoice 04/15/2026 Employee Credit Card Charges 309.79 718107428907 Invoice 04/15/2026 Employee Credit Card Charges 104.65 7338371793007 Invoice 04/15/2026 Employee Credit Card Charges 1268.4 7338371793007 Invoice 04/15/2026 Employee Credit Card Charges 243.7 3/18/26 Invoice 04/15/2026 Employee Credit Card Charges 325 3/5/26 Invoice 04/15/2026 Employee Credit Card Charges 30.9 313303 Invoice 04/15/2026 Employee Credit Card Charges 255.43 56536 Invoice 04/15/2026 Employee Credit Card Charges 243.17 2326 Invoice 04/15/2026 Employee Credit Card Charges 306.37 2413746606300 Invoice 04/03/2026 Employee Credit Card Charges 11.7 2413746607800 Invoice 04/03/2026 Employee Credit Card Charges 11.7 2537083073 Invoice 04/03/2026 Employee Credit Card Charges 12.83 189746216 Invoice 04/15/2026 Employee Credit Card Charges 15 1928 Invoice 04/15/2026 Employee Credit Card Charges 594.74 2/25/26 Invoice 04/15/2026 Employee Credit Card Charges 354.37 2000145-32902 Invoice 04/15/2026 Employee Credit Card Charges 41.31 Check Report - Detail Date Range: 04/16/2026 - 04/16/2026 114-5622744-09 Invoice 04/15/2026 Employee Credit Card Charges 123.93 INV0004009 Invoice 04/14/2026 Employee Credit Card Charges 21.74 4/16/2026 4:17:17 PM Page 6 of 9
INV0004005 Invoice 04/10/2026 Employee Credit Card Charges 68.59 INV0004006 Invoice 04/10/2026 Employee Credit Card Charges 51.1 INV0004007 Invoice 04/10/2026 Employee Credit Card Charges 250.68 INV0004008 Invoice 04/10/2026 Employee Credit Card Charges 350 INV0004001 Invoice 04/10/2026 Employee Credit Card Charges 11 INV0004002 Invoice 04/10/2026 Employee Credit Card Charges 4.34 INV0004003 Invoice 04/10/2026 Employee Credit Card Charges 11.5 INV0004004 Invoice 04/10/2026 Employee Credit Card Charges 29.99 INV0003997 Invoice 04/10/2026 Employee Credit Card Charges 3.25 INV0003998 Invoice 04/10/2026 Employee Credit Card Charges 10.55 INV0003999 Invoice 04/10/2026 Employee Credit Card Charges 25.67 INV0004000 Invoice 04/10/2026 Employee Credit Card Charges 33.41 icffro Invoice 04/15/2026 Employee Credit Card Charges 358.4 INV0003994 Invoice 04/10/2026 Employee Credit Card Charges 4.34 INV0003995 Invoice 04/10/2026 Employee Credit Card Charges 7.5 INV0003996 Invoice 04/10/2026 Employee Credit Card Charges 13.45 HARRAH'S JYH Invoice 02/24/2026 Employee Credit Card Charges 112.86 HARRAH'S THWInvoice 02/24/2026 Employee Credit Card Charges 112.86 HOME DEPOT Invoice 03/19/2026 Employee Credit Card Charges 216.41 HOME DEPOT Invoice 03/19/2026 Employee Credit Card Charges 541.58 FAT CATS 120 Invoice 03/18/2026 Employee Credit Card Charges 120.61 FIRE HOSE SU Invoice 03/19/2026 Employee Credit Card Charges 750.93 FORTPRO NTK Invoice 03/04/2026 Employee Credit Card Charges 156.96 GRAND AMER Invoice 03/05/2026 Employee Credit Card Charges 109.51 E0100YUEXR Invoice 04/03/2026 Employee Credit Card Charges 30 E0100YUEXS Invoice 04/03/2026 Employee Credit Card Charges 1450 expedia Invoice 04/15/2026 Employee Credit Card Charges 164.24 expedia-1 Credit Memo 04/15/2026 Employee Credit Card Charges -164.24 E0100YUBSN Invoice 04/03/2026 Employee Credit Card Charges 40 E0100YUBSO Invoice 04/03/2026 Employee Credit Card Charges 192 E0100YUBSP Invoice 04/03/2026 Employee Credit Card Charges 10 E0100YUBSQ Invoice 04/03/2026 Employee Credit Card Charges 30 Check Report - Detail Date Range: 04/16/2026 - 04/16/2026 E. WIGGIN CO Invoice 03/01/2026 Employee Credit Card Charges 2.99 E0100YU5FJ Invoice 04/03/2026 Employee Credit Card Charges 1064 E0100YU5FX Invoice 04/03/2026 Employee Credit Card Charges 588 81040
81041
5020991792 Invoice 03/09/2026 UNIFORM SERVICES 211.69
5020996113 Invoice 03/16/2026 UNIFORM SERVICES 219.12
5021000084 Invoice 03/23/2026 UNIFORM SERVICES 221.89
4/16/2026 4:17:17 PM Page 7 of 9
INV0004027 Invoice 04/14/2026 Verdin_Inv 12876_Monthly Tech Fee_3-31-2026 3998 04/16/2026 Vestis Group, Inc 1086.28
5020987629 Invoice 03/02/2026 UNIFORM SERVICES 211.69
VONS 27.38 Invoice 03/05/2026 Employee Credit Card Charges 27.38 WN50477659 Invoice 03/03/2026 Employee Credit Card Charges 389.02 WN50478406 Invoice 03/03/2026 Employee Credit Card Charges 65.23 04/16/2026 Verdin Marketing Ink, Co. 3998
USB.LK.Westin Invoice 03/13/2026 Employee Credit Card Charges 925.56 USB.LK.Westin Invoice 03/13/2026 Employee Credit Card Charges 925.56 USPS GRANIT Invoice 02/25/2026 Employee Credit Card Charges 14.25 USPS GRANIT Invoice 03/11/2026 Employee Credit Card Charges 14.25 USB.LK.Amazo Invoice 03/19/2026 Employee Credit Card Charges 572.99 USB.LK.Kahoot Invoice 03/21/2026 Employee Credit Card Charges 15 USB.LK.Meta.4 Invoice 03/05/2026 Employee Credit Card Charges 4.93 USB.LK.Westin Invoice 03/13/2026 Employee Credit Card Charges 850.56 Masonry Prime Invoice 03/11/2026 Employee Credit Card Charges 172.15 PW MGMT ANA Invoice 03/12/2026 Employee Credit Card Charges 2.99 PW/ENG CONN Invoice 03/07/2026 Employee Credit Card Charges 2.99 TACOS DE ACA Invoice 03/09/2026 Employee Credit Card Charges 181.95 INV0004020 Invoice 04/14/2026 Employee Credit Card Charges 20 jq5c6e Invoice 04/15/2026 Employee Credit Card Charges 243.7 jq5c6e-2 Invoice 04/15/2026 Employee Credit Card Charges 101.1 M. CRONAN CO Invoice 03/03/2026 Employee Credit Card Charges 2.99 INV0004016 Invoice 04/14/2026 Employee Credit Card Charges 16.5 INV0004017 Invoice 04/14/2026 Employee Credit Card Charges 37.57 INV0004018 Invoice 04/14/2026 Employee Credit Card Charges 81.12 INV0004019 Invoice 04/14/2026 Employee Credit Card Charges 58 INV0004012 Invoice 04/14/2026 Employee Credit Card Charges 258.95 INV0004013 Invoice 04/14/2026 Employee Credit Card Charges 12.39 INV0004014 Invoice 04/14/2026 Employee Credit Card Charges 135 INV0004015 Invoice 04/14/2026 Employee Credit Card Charges 96.35 Check Report - Detail Date Range: 04/16/2026 - 04/16/2026 INV0004010 Invoice 04/14/2026 Employee Credit Card Charges 51.53 INV0004011 Invoice 04/14/2026 Employee Credit Card Charges 46.98 Check Report - Detail Date Range: 04/16/2026 - 04/16/2026 5021004254 Invoice 04/13/2026 UNIFORM SERVICES 221.89
4/16/2026 4:17:17 PM Page 8 of 9
Discount
0.00 0.00
0.00 0.00
0.00 202 37 0.00 165,655.43
4/16/2026 4:17:17 PM Page 9 of 9
Regular Checks 202 37 165,655.43
Manual Checks 0 0 0.00
Voided Checks 0 0 0.00
Bank Drafts 0 0 0.00
EFT's 0 0 0.00
Check Report - Summary Date Range: 04/16/2026 - 04/16/2026 All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Count Payment
4/16/2026 11:28:20 AM Page 1 of 1
Refund Check Register
City of Grover Beach, CA Refund Check Detail
UBPKT01884 - 4/16/26 Customer Overpayment SS
Account Name Date Check # Amount Code Receipt Amount Type 01-0782-04 CALIFORNIA PROPERTY SERVICES, 4/16/2026 81043 142.00 142.00 Deposit Total Refunds: 1 Total Refunded Amount: 142.00
Revenue Code Summary
Revenue Code Amount
996 - UNAPPLIED CREDITS 142.00
Revenue Total: 142.00
General Ledger Distribution
Account Number Account Name Posting Amount IFT
Posting Date: 04/16/2026
Fund: 601 - Water Fund
601-000-10001-000 Claim On Cash -142.00 Yes
601-000-11110-000 Accounts Receivable Water 142.00
601 Total: 0.00
Fund: 999 - Pooled Cash
999-000-10000-000 Cash In Bank -142.00
999-000-25100-000 Due To Other Funds 142.00 Yes
999 Total: 0.00
Distribution Total: 0.00
4/16/2026 11:33:32 AM Page 1 of 1
Refund Check Register
City of Grover Beach, CA Refund Check Detail
UBPKT01885 - 4/16/26 Refund Closed Acct SS
Account Name Date Check # Amount Code Receipt Amount Type 01-1843-03 LOVELESS, ANGELA 4/16/2026 81044 90.06 90.06 Deposit Total Refunds: 1 Total Refunded Amount: 90.06
Revenue Code Summary
Revenue Code Amount
996 - UNAPPLIED CREDITS 90.06
Revenue Total: 90.06
General Ledger Distribution
Account Number Account Name Posting Amount IFT
Posting Date: 04/16/2026
Fund: 601 - Water Fund
601-000-10001-000 Claim On Cash -90.06 Yes
601-000-11110-000 Accounts Receivable Water 90.06
601 Total: 0.00
Fund: 999 - Pooled Cash
999-000-10000-000 Cash In Bank -90.06
999-000-25100-000 Due To Other Funds 90.06 Yes
999 Total: 0.00
Distribution Total: 0.00
ACCOUNTS PAYABLE
CHECK DATE 04/23/2026
4/23/2026 11:21:16 AM Page 1 of 1
Refund Check Register
City of Grover Beach, CA Refund Check Detail
UBPKT01887 - 4/20/26 Overpayment SS
Account Name Date Check # Amount Code Receipt Amount Type 01-0045-00 GRISEZ, JAMES L 4/23/2026 81045 481.68 481.68 Deposit Total Refunds: 1 Total Refunded Amount: 481.68
Revenue Code Summary
Revenue Code Amount
996 - UNAPPLIED CREDITS 481.68
Revenue Total: 481.68
General Ledger Distribution
Account Number Account Name Posting Amount IFT
Posting Date: 04/23/2026
Fund: 601 - Water Fund
601-000-10001-000 Claim On Cash -481.68 Yes
601-000-11110-000 Accounts Receivable Water 481.68
601 Total: 0.00
Fund: 999 - Pooled Cash
999-000-10000-000 Cash In Bank -481.68
999-000-25100-000 Due To Other Funds 481.68 Yes
999 Total: 0.00
Distribution Total: 0.00
81046
81047
81048
81049
81050
81051
81052
81054
81055
Check Report
City of Grover Beach By Check Number
154 S. 8th Street Date Range: 04/23/2026 - 04/23/2026
Grover Beach, CA 93433
04/23/2026 Adriana Stephenson 87
2001263.002 Invoice 04/22/2026 2001263.002 R3796 GHLow 4/12/26 Stephenson SDRfd 87 04/23/2026 AFLAC 691.68
541051 Invoice 04/22/2026 April 2026- AFLAC premiums 691.68 04/23/2026 AMAZON CAPITAL SERVICES 1627.81
1K47-1XC1-XHN7Invoice 04/10/2026 LOC# 100 CITY HALL JANITORIAL SUPPLIES 79.08 1PCC-KTJX-F3XFInvoice 04/20/2026 CREW 1 YEAR JACKETS & LIFT STATION SUPPLIES 443.52 1RYH-Y9Q3-TDN1Invoice 04/13/2026 PW SAFETY SUPPLIES 1190.22 1WJ3-RJ6Y-XFT6Invoice 04/10/2026 LOC# 100 CITY HALL JANITORIAL SUPPLIES 48.63 CM0000194 Credit Memo 04/23/2026 Return of Toner -133.64 04/23/2026 Anna Lanier 1197
CFS.AL.TT.042026Invoice 04/22/2026 CFS.AL.TT.042026 Instructor Payment 1197 04/23/2026 AQUA-METRIC SALES CO. 19980.86
INV0113597 Invoice 04/13/2026 STOCK WATER METERS 12506.12 INV0113743 Invoice 04/16/2026 STOCK WATER METERS 7474.74 04/23/2026 AT&T 127.04
4/7/26 Invoice 04/22/2026 Alarm Circuits 4/7/26 - 5/6/26 127.04 04/23/2026 AUTO ZONE INC 798.27
04021256667 Invoice 04/01/2026 BATTERY TEST TOOL FOR PW TRUCK # 233 140 04021262660 Invoice 04/08/2026 SPARK PLUGS FOR PW TRUCK # 216 41.34 04021263159 Invoice 04/09/2026 TOOL FOR PW TRUCK # 233 169.99 04021263161 Invoice 04/09/2026 PART FOR PW TRUCK # 228 229.53 04021263653 Invoice 04/09/2026 PARKS FOR PW TRUCK # 228 246.92 04021263654 Credit Memo 04/09/2026 CREDIT MEMO FOR PW TRUCK # 228 -229.53 04021264434 Invoice 04/10/2026 PARTS FOR PW TRUCK # 228 200.02 04/23/2026 B SAFE Playground Inspection Services Inc 4000 260081 Invoice 04/01/2026 LOC# 111 GROVER HEIGHTS PLAYGROUND INSPECTION 2000 260082 Invoice 04/01/2026 LOC# 110 HERO PARK PLAYGROUND INSPECTION 2000 04/23/2026 Beach Front Automotive & Smog 1062.61
9246 Invoice 04/15/2026 PARTS & LABOR FOR PW TRUCK #228 1062.61 5/13/2026 11:45:28 AM Page 1 of 7
81056
81057
81058
81059
81060
81061
81062
81063
81064
81065
81066
81067
81068
81069
81070
Check Report - Detail Date Range: 04/23/2026 - 04/23/2026 04/23/2026 BURKE AND PACE OF ARROYO GRANDE INC 111.84
2604-047799 Invoice 04/02/2026 4TH STREET ENTRANCE FENCE REPAIR SUPPLIES 111.84 04/23/2026 CALIFORNIA BUILDING STANDARDS COMMISSION 191.11 Green Fees Q1-2026 Invoice 04/20/2026 Green Fees Q1-2026 191.11 04/23/2026 Central Coast Balboa 1571.5
CFS.Balboa.042026Invoice 04/22/2026 CFS.Balboa.042026 - instructor payment 1571.5 04/23/2026 Cesar Zarate 360
C. ZARATE CRWA EXPO PER DIEM 2026 Invoice 04/22/2026 C. ZARATE CRWA EXPO 2026 PER DIEM 360 04/23/2026 Charlotte L Ritter 362.6
CFS.Charlotte.042026 Invoice 04/22/2026 CFS.Charlotte.042026 362.6 04/23/2026 Chelsea Lam 197
2001255.002 Invoice 04/22/2026 2001255.002 R3800 refund 16th Street Lam C 197 04/23/2026 CITY OF ARROYO GRANDE ADMINISTRATIVE SERVICES 2544.38 2026-026 RevisedInvoice 04/21/2026 Lopez Project Agreement Payment Obligations 2544.38 04/23/2026 CITY OF ARROYO GRANDE RECREATION SERVICES DEPT 5793.25 GBSU2026 Invoice 04/22/2026 GBSU2026 Summer Activitiy Guide 2026 5793.25 04/23/2026 CITY OF PISMO BEACH 315
5/1/2026 Invoice 04/22/2026 May 2026-Rent for 177 S 8th St 315 04/23/2026 CONFLUENCE ENGINEERING SOLUTIONS, INC 33227.51 1395 Invoice 04/10/2026 CIP 4020 PROFESSIONAL SERVICES 01/01/26-03/31/26 33227.51 04/23/2026 DENNIS RICHARDSON 620
CFS.Tennis.042026Invoice 04/22/2026 CFS.Tennis.042026 Instructor Payment 620 04/23/2026 Doomsday Skate, LLC 630
CFS.Skate.042026Invoice 04/22/2026 CFS.Skate.042026 Instructor Payment 630 04/23/2026 EXECUTIVE JANITORIAL INC. 6910
93561 Invoice 04/16/2026 LOC# 107 CORP YARD JANITORIAL APRIL 2026 500 93562 Invoice 04/16/2026 LOC# 100 & 101 CITY HALL/PD JANITORIAL APRIL 2026 2650 93563 Invoice 04/16/2026 93563 04/2026 cleaning for RGP & GBCC 900 93564 Invoice 04/16/2026 LOC# 103 & PARKS JANITORIAL APRIL 2026 2860 04/23/2026 FIVE CITIES FIRE AUTHORITY 747117.25
FCFA-2026-008 Invoice 04/21/2026 Jan - March 2026 Agency's share of costs 747117.25 04/23/2026 FlexTG LLC 98.48
5/13/2026 11:45:28 AM Page 2 of 7
81071
81072
81073
81074
81075
81076
81077
81078
81079
81080
81081
81082
81083
Check Report - Detail Date Range: 04/23/2026 - 04/23/2026 4631330-cal Invoice 04/22/2026 copier useage 3/20/26 to 4/19/26 Records 98.48 04/23/2026 FRANK'S LOCK & KEY 76.13
57431 Invoice 04/13/2026 SPECIAL ORDER MASTER KEYS FOR FACILITIES 76.13 04/23/2026 GLENN BURDETTE, INC. 12500
246215 Invoice 04/21/2026 Services rendered for preperation of TDA Fund 12500 04/23/2026 GRAINGER 408.75
9863367323 Invoice 04/01/2026 LIGHTS FOR PW TRUCK # 217 82.86 9864930855 Invoice 04/02/2026 PUBLIC WORKS FLEET SUPPLIES 72.58 9875901390 Invoice 04/10/2026 PW SAFETY SUPPLIES 253.31 04/23/2026 GROVER TOOL RENTAL 5.04
1-558397 Invoice 04/14/2026 VIBRATOR ELECT 10' RENTAL 04/14/2026 5.04 04/23/2026 J.B. DEWAR INC. 4074.99
464626 Invoice 04/22/2026 gas stmt 4/11/26 to 4/20/26 2874.59 464627 Invoice 04/22/2026 Gasoline charges for PW vehicles 1200.4 04/23/2026 Jack Handley Construction Services Inc 3304.06 2026-06 Invoice 04/15/2026 LOC# 107 PORTABLE TRAILER SIDING REPAIRS 3304.06 04/23/2026 Javier Hernandez 87
2001261.002 Invoice 04/22/2026 2001261.002 3728 HernandezJ 4/18/26 SDRfd 87 04/23/2026 JTS INC 2300
909508 Invoice 04/13/2026 W. GRAND AVENUE TREE STUMP GRINDING 250 909509 Invoice 04/13/2026 W. GRAND AVENUE TREE REMOVAL 550 909532 Invoice 04/17/2026 4TH STREET DOWNED EUCALYPTUS REMOVAL 1500 04/23/2026 Kerr Industries of Texas Inc 225
txinv-12050 Invoice 04/22/2026 Unit 6 seatbelt replacement 225 04/23/2026 Kristopher Doe 451.73
CFS.Paint.042026Invoice 04/22/2026 CFS.Paint.042026 451.73 04/23/2026 LIEBERT CASSIDY WHITMORE 1014
320890 Invoice 04/22/2026 Professional Services Rendered 1014 04/23/2026 Longeye Inc 1800
26-groverbeach Invoice 04/22/2026 3 months 1800
04/23/2026 Marisa Cervantes 750
2001262.002 Invoice 04/22/2026 2001262.002 3770 Ramona CervantesM SDRfd 4/18/26 750 5/13/2026 11:45:28 AM Page 3 of 7
81084
81085
81086
81087
81088
81089
81090
81091
81092
81093
81094
81095
81096
81097
81098
Check Report - Detail Date Range: 04/23/2026 - 04/23/2026 04/23/2026 Marlin Leasing Corp PEAC Solutions 295.39
41870471 Invoice 04/22/2026 SharpBP-70C45 4/2/26 - 5/1/26 295.39 04/23/2026 Metropolitan Life Isurance Company 6516.41
March 2026 Invoice 04/22/2026 March 2026-Employee Insurance Premiums 6516.41 04/23/2026 Michael K. Nunley & Associates, Inc. 2153.25 3036 Invoice 04/07/2026 CIP 5002 PROF. SERVICES MARCH 2026 2153.25 04/23/2026 Mike & Holly Pryor Revocable Trust dated March 13, 2020 9286.85 May2026 Invoice 04/22/2026 rent 45 Newport May 2026 9286.85 04/23/2026 Noble Saw Acquisition LLC 152.6
681208 Invoice 04/03/2026 FACILITIES MAINTENANCE SUPPLIES 152.6 04/23/2026 O'REILLY'S AUTOMOTIVE INC 195.16
3025-123650 Invoice 03/23/2026 PARTS FOR WELL 3 38.78
3025-128878 Invoice 04/08/2026 PARTS FOR PW TRUCK # 228 156.38 04/23/2026 PACIFIC GAS AND ELECTRIC 32733.46
1074697152-10-26Invoice 04/22/2026 Public Works & Parks 3/19/26 - 4/16/26 26719.17 4/8/26 Invoice 04/22/2026 Public Works Electric Charges 3/6/26 - 4/9/26 6014.29 04/23/2026 PHELAN KATHRYN 477.4
CFS.Kathryn.042026 Invoice 04/22/2026 CFS.Kathryn.042026 Instructor Payment 477.4 04/23/2026 Primo Brands Blue Triton Brands Inc 295.51
06C0900006669 Invoice 04/02/2026 DRINKING WATER FOR CORP YARD 295.51 04/23/2026 SAN LUIS OBISPO CO SHERIFF'S OFFICE 4.57
gbpd-2026-b Invoice 04/22/2026 difference between inv paid 1/14/26 and 4/9/26 4.57 04/23/2026 SAN LUIS OBISPO COUNTY SHERIFF-CORONER / CRIME LAB 284 cs-0326-08 Invoice 04/22/2026 drug test 4 cases 284
04/23/2026 SANDY MERSHON 2485
CFS.SM.TT.042026Invoice 04/22/2026 CFS.SM.TT.042026 Instructor Payment 2485 04/23/2026 SENTINEL SECURITY SOLUTIONS, Inc 299.7
105543 Invoice 04/11/2026 LOC# 104 COMM. CENTER FIRE MONITORING MAY-JUL 2026 179.85 105693 Invoice 04/11/2026 LOC# 104 COMM. CENTER ALARM MONITORING MAY-JUL 26 119.85 04/23/2026 Sherwin-Williams 15925.35
1025-37438 Invoice 04/08/2026 ES2000HP2A LINELAZER SYSTEM 15925.35 04/23/2026 Siteone Landscape Supply, LLC 588.86
5/13/2026 11:45:28 AM Page 4 of 7
81099
81100
81101
81102
81103
81104
81105
81106
81107
81108
81109
81110
Check Report - Detail Date Range: 04/23/2026 - 04/23/2026 164176703-001 Invoice 04/02/2026 LOC# 105 RAMONA IRRIGATION REPAIRS 101.99 164206398-001 Invoice 04/02/2026 PUBLIC WORKS SPRAYING SUPPLIES 107.66 164439149-001 Invoice 04/08/2026 WATER DEPT. STOCK SUPPLIES 48.94 164861043-001 Invoice 04/16/2026 IRRIGATION TRUCK STOCK SUPPLIES 330.27 04/23/2026 SLO Auto Parts Inc 99.31
051007 Invoice 04/16/2026 SHOP SUPPLIES & TOOL 99.31
04/23/2026 SOUTH SAN LUIS OBISPO CO. SANITATION DISTRICT 29699 Q1 2026 Sanitation Dist Fees Invoice 04/20/2026 Q1 2026 Sanitation Dist Fees 29699 04/23/2026 SOUTHERN CALIF GAS CO 325.32
4/16/26 Invoice 04/22/2026 Gas charges for facilities 3/9/26 - 4/10/26 325.32 04/23/2026 STATE CONTROLLER DEPT ACCT OFFICE ATTN: ACCT REC 2733.84 FAUD-00005219 Invoice 04/21/2026 Annual Street Report FY 24/25 2733.84 04/23/2026 STATE OF CALIFORNIA DEPT OF CONSERVATION 605.92 1st Qrt 2026 SMIPInvoice 04/17/2026 SMIP Fees for the period of 01/01/2026 to 03/31/20 605.92 04/23/2026 TCA Tools Inc 399.01
040826148754 Invoice 04/08/2026 SAFETY SUPPLIES & TOOL FOR PW SHOP 303.85 041526148965 Invoice 04/15/2026 TOOLS FOR PARKS EQUIPMENT 95.16 04/23/2026 Toste Grading & Paving, Inc. 9240
8887 Invoice 04/21/2026 DAMAGED STREET REPAIRS FROM WATER LINE BREAKS 9240 04/23/2026 Traffic Management, Inc. 1092.91
06-122800 Invoice 04/10/2026 STOCK STREET SIGNAGE 1092.91 04/23/2026 Tyler Technologies, Inc 707.75
025-548093 Invoice 04/22/2026 Insite Transaction Fees BTC CC 1.25 025-548610 Invoice 04/22/2026 Subscription UB Notificationn Calls 6.5 025-549156 Invoice 04/22/2026 March EPL Data Conversion 200 025-549782 Invoice 04/22/2026 EPL Data Conversion 500
04/23/2026 UNITED RENTALS (NORTH AMERICA) INC 923.91
257204542-001 Invoice 01/09/2026 LIFT RENTAL 01/06/2026 - 01/07/2026 923.91 04/23/2026 WALLACE GROUP 56247.47
67388 Invoice 03/31/2026 Map Checking 630
67623 Invoice 04/20/2026 CIP 5002-2 CONST. MANAGEMENT SERVICES MARCH 2026 53727.47 67627 Invoice 04/20/2026 Map Checking 1890
04/23/2026 White Flag Pest Control 105
5/13/2026 11:45:28 AM Page 5 of 7
81111
Check Report - Detail Date Range: 04/23/2026 - 04/23/2026 178339 Invoice 04/21/2026 LOC# 102 FIRE STATION PEST CONTROL 04/21/2026 105 04/23/2026 William Haas 360
B. HAAS CRWA EXPO PER DIEM 2026 Invoice 04/22/2026 B. HAAS CRWA EXPO PER DIEM 2026 360 5/13/2026 11:45:28 AM Page 6 of 7
Discount
0.00 0.00
0.00 0.00
0.00 0.00
Check Report - Summary Date Range: 04/23/2026 - 04/23/2026 All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Count Payment
Regular Checks 97 65 1,030,851.84
5/13/2026 11:45:28 AM Page 7 of 7
Manual Checks 0 0 0.00
Voided Checks 0 0 0.00
Bank Drafts 0 0 0.00
EFT's 0 0 0.00
97 66 1,030,851.84
ACCOUNTS PAYABLE
CHECK DATE 04/30/2026
4/30/2026 9:46:19 AM Page 1 of 1
Refund Check Register
City of Grover Beach, CA Refund Check Detail
UBPKT01905 - Refunds 2 UBPKT01904 Disconnect
Account Name Date Check # Amount Code Receipt Amount Type 02-4341-00 ARRINGTON, KELLI S 4/30/2026 81112 47.11 47.11 Generated From Billing 02-5555-00 JOHNSTON, CASEY 4/30/2026 81113 198.68 198.68 Generated From Billing Total Refunds: 2 Total Refunded Amount: 245.79
Revenue Code Summary
Revenue Code Amount
996 - UNAPPLIED CREDITS 245.79
Revenue Total: 245.79
General Ledger Distribution
Account Number Account Name Posting Amount IFT
Posting Date: 04/30/2026
Fund: 601 - Water Fund
601-000-10001-000 Claim On Cash -245.79 Yes
601-000-11110-000 Accounts Receivable Water 245.79
601 Total: 0.00
Fund: 999 - Pooled Cash
999-000-10000-000 Cash In Bank -245.79
999-000-25100-000 Due To Other Funds 245.79 Yes
999 Total: 0.00
Distribution Total: 0.00
4/30/2026 9:49:51 AM Page 1 of 1
Refund Check Register
City of Grover Beach, CA Refund Check Detail
UBPKT01906 - Refunds 1 UBPKT01904 Disconnect
Account Name Date Check # Amount Code Receipt Amount Type 01-0152-01 ASSI, TAREK M. HANNA & AMMAR 4/30/2026 81114 186.28 186.28 Generated From Billing 01-0379-03 LANE, KATELYNN 4/30/2026 81115 136.72 136.72 Generated From Billing 01-0481-02 MARSHALL, SHERRI 4/30/2026 81116 153.37 153.37 Generated From Billing 01-0737-03 VON LUVEN C/O DYLLAN JONES, EMILY 4/30/2026 81117 190.65 190.65 Generated From Billing 01-1833-03 SWIONTEK, GRANT 4/30/2026 81118 160.70 160.70 Generated From Billing 01-1840-02 TODD, HALEY 4/30/2026 81119 83.78 83.78 Generated From Billing 01-2167-03 CREATIVE COATINGS - SONJA GARCIA & LUIS GARCIA 4/30/2026 81120 220.85 220.85 Generated From Billing Total Refunds: 7 Total Refunded Amount: 1,132.35
Revenue Code Summary
Revenue Code Amount
996 - UNAPPLIED CREDITS 1132.35
Revenue Total: 1132.35
General Ledger Distribution
Account Number Account Name Posting Amount IFT
Posting Date: 04/30/2026
Fund: 601 - Water Fund
601-000-10001-000 Claim On Cash -1,132.35 Yes
601-000-11110-000 Accounts Receivable Water 1,132.35
601 Total: 0.00
Fund: 999 - Pooled Cash
999-000-10000-000 Cash In Bank -1,132.35
999-000-25100-000 Due To Other Funds 1,132.35 Yes
999 Total: 0.00
Distribution Total: 0.00
81121
81122
81123
81124
81125
81126
81127
81128
81129
81130
81131
81132
81133
81134
Check Report
City of Grover Beach By Check Number
154 S. 8th Street Date Range: 04/30/2026 - 04/30/2026
Grover Beach, CA 93433
04/30/2026 AMAZON CAPITAL SERVICES 54.95
1XCQ-WL7X-GRF6Invoice 04/28/2026 Office Supplies for Admin Services 54.95 04/30/2026 Applied Technology Group, Inc. 7249.45
S-INV107552 Invoice 04/29/2026 labor for radio encryption 2500 S-INV107585 Invoice 04/28/2026 encryption on radios 4749.45 04/30/2026 AT&T 1141
000025149908 Invoice 04/28/2026 City Hall Telephones 3/25/26 - 4/24/26 1141 04/30/2026 B SAFE Playground Inspection Services Inc 4725 260092 Invoice 04/09/2026 LOC# 114 RAMONA PARK PLAYGROUND INSPECTION 4725 04/30/2026 Bryce Moses 1141.94
04272026 Invoice 04/28/2026 lodging parking mileage per diem FTO UPD 5/19/26 1141.94 04/30/2026 BURKE AND PACE OF ARROYO GRANDE INC 211.71
2604-049317 Invoice 04/15/2026 LOC# 109 16TH STREE PARK SIDEWALK REPAIRS 211.71 04/30/2026 Capital Industrial Medical Supply Co. 78.27
177905 Invoice 04/28/2026 supplies for first aid kit in Dept 78.27 04/30/2026 Charles Quincy 87
2001264.002 Invoice 04/29/2026 2001264.002 3803.GHUp 4.25.26 SDRfd 87 04/30/2026 Charter Communications 553.36
170584601042126Invoice 04/30/2026 City Facilities Internet Charges 4/21/26-5/20/26 553.36 04/30/2026 CITY OF GROVER BEACH WATER DEPT. 5815.54
4/1/26 Invoice 04/28/2026 City Water Accounts 2/1/26 - 4/1/26 5815.54 04/30/2026 CONFLUENCE ENGINEERING SOLUTIONS, INC 13586.57 1361 Invoice 01/01/2026 CIP 4008 PROF. SERVICES FROM 07/01/2025-12/31/2025 13586.57 04/30/2026 Deltina Coffee Roasters 125
11513 Invoice 04/22/2026 COFFEE FOR PW OFFICE & CORP YARD 125 04/30/2026 DEPT OF JUSTICE ACCOUNTING OFFICE/CASHIERING UNIT 147 035191 Invoice 04/28/2026 Live Scan March 2026 147
04/30/2026 FLOCK SAFETY INC 27000
INV-91700 Invoice 04/28/2026 LPR 2026-2027 27000
4/30/2026 1:13:09 PM Page 1 of 5
81135
81136
81138
81139
81140
81141
Check Report - Detail Date Range: 04/30/2026 - 04/30/2026 04/30/2026 FRANCHISE TAX BOARD 50
INV0004115 Invoice 05/01/2026 Franchise Tax Board Garnishment 50 04/30/2026 GROVER BEACH POLICE OFFICERS ASSOC. 1320
INV0004092 Invoice 05/01/2026 POA Dues 60
INV0004093 Invoice 05/01/2026 POA Dues 60
INV0004094 Invoice 05/01/2026 POA Dues 60
INV0004095 Invoice 05/01/2026 POA Dues 60
INV0004096 Invoice 05/01/2026 POA Dues 60
INV0004097 Invoice 05/01/2026 POA Dues 60
INV0004098 Invoice 05/01/2026 POA Dues 60
INV0004099 Invoice 05/01/2026 POA Dues 60
INV0004100 Invoice 05/01/2026 POA Dues 60
INV0004101 Invoice 05/01/2026 POA Dues 60
INV0004102 Invoice 05/01/2026 POA Dues 60
INV0004103 Invoice 05/01/2026 POA Dues 60
INV0004104 Invoice 05/01/2026 POA Dues 60
INV0004105 Invoice 05/01/2026 POA Dues 60
INV0004106 Invoice 05/01/2026 POA Dues 60
INV0004107 Invoice 05/01/2026 POA Dues 60
INV0004108 Invoice 05/01/2026 POA Dues 60
INV0004109 Invoice 05/01/2026 POA Dues 60
INV0004110 Invoice 05/01/2026 POA Dues 60
INV0004111 Invoice 05/01/2026 POA Dues 60
INV0004112 Invoice 05/01/2026 POA Dues 60
INV0004113 Invoice 05/01/2026 POA Dues 60
04/30/2026 Ian Marquardt 750
2001269.002 Invoice 04/29/2026 2001269.002 3810 Ramona 4.22.26 SDRfd 750 04/30/2026 J.R. Barto Heating/AC/SM, Inc 160
S8524 Invoice 04/16/2026 LOC# 100 CITY HALL HVAC CALL OUT 160 04/30/2026 JAS PACIFIC 48181.18
BI 15293 Invoice 02/11/2026 Building Inspector 25217.5
BI 15333 Invoice 03/09/2026 BUILDING INSP SERVICES 17403.75 PC8004 Invoice 03/09/2026 Building Inspections 5559.93
04/30/2026 LEE WILSON ELECTRIC CO. INC 1311
2602 Invoice 02/26/2026 TRAFFIC SIGNAL MAINTENANCE FEB 2026 1020 4/30/2026 1:13:09 PM Page 2 of 5
81142
81143
81144
81145
81146
81147
81148
81149
81150
81151
81152
81153
81154
81155
81156
81157
Check Report - Detail Date Range: 04/30/2026 - 04/30/2026 3915 Invoice 03/31/2026 OAK PARK & ECR TROUBLESHOOTING CALL OUT 03/19/2026 291 04/30/2026 LUIS GARCIA 1386.27
04272026 Invoice 04/28/2026 lodging, per diem Prop Evid Conf 5/17/26, Palm Spr 1386.27 04/30/2026 Marlin Leasing Corp PEAC Solutions 120.33
4634978-CAL Invoice 04/28/2026 SharpBP-70C45 3/22/26-4/21/26 120.33 04/30/2026 Metropolitan Life Isurance Company 6521.8
May 2026 Invoice 04/24/2026 May 2026 Employee Insurance Premiums 6521.8 04/30/2026 Michael K. Nunley & Associates, Inc. 9164.5
3039 Invoice 04/07/2026 CIP 5010 PROF. DESIGN SERVICES 03/31/2026 9164.5 04/30/2026 Mid-Coast Fire Protection, Inc. 349.15
12485411 Invoice 04/23/2026 LOC# 105 RAMONA CENTER ANNUAL EXTINGUISHER SERVICE 349.15 04/30/2026 O'REILLY'S AUTOMOTIVE INC 12.65
3025-133224 Invoice 04/22/2026 WELL #1 AIR LINE TESTER 12.65 04/30/2026 R. BAKER INC. 13350
1080 Invoice 04/17/2026 BRIGHTON & 7TH 8" VALVE CUT IN 13350 04/30/2026 SAN LUIS OBISPO COUNTY SHERIFF-CORONER / CRIME LAB 923 cs-0226-08 Invoice 04/28/2026 drug test 13 cases 923
04/30/2026 San Luis Obispo County Sherrif 916.72
INV0004116 Invoice 05/01/2026 Employee Garnishment 916.72 04/30/2026 Schwind Electric Inc 9671.04
1252 Invoice 04/09/2026 CIP 3002 CORP YARD SHOP ELECTRICAL 9671.04 04/30/2026 Sikh Heritage Society of the Central Coast 450 2001266.002 Invoice 04/29/2026 2001266.002 R3780 Ramona 4/25/26 SDRfd 450 04/30/2026 SOUZA CONSTRUCTION INC. 368949.41
33126 Invoice 04/15/2026 CIP 5002-2 CONSTRUCTION THROUGH MARCH 2026 368949.41 04/30/2026 STATE DISBURSEMENT UNIT 250
INV0004114 Invoice 05/01/2026 Employee Garnishment 250
04/30/2026 Thomas Hand 87
2001270.002 Invoice 04/29/2026 2001270.002 3781 16th 4.11.26 SDRfd 87 04/30/2026 Traffic Management, Inc. 1049.15
06-1936029 Invoice 04/29/2026 VARIOUS STREET SIGNAGE 1049.15 04/30/2026 UNITED STAFFING ASSOCIATES, LLC 2839.68
4/30/2026 1:13:09 PM Page 3 of 5
81158
81159
81160
81161
81162
81163
81164
Check Report - Detail Date Range: 04/30/2026 - 04/30/2026 266398 Invoice 04/15/2026 A. NUSSER ADMIN. ASSISTANT WEEK OF 04/12/2026 1419.84 266613 Invoice 04/22/2026 A. NUSSER ADMIN. ASSISTANT WEEK OF 04/19/2026 1419.84 04/30/2026 UNIVAR USA INC 5349.59
53848554 Invoice 04/27/2026 WELL 4 SODIUM HYPOCHLORITE DELIVERY 2872.05 53848555 Invoice 04/27/2026 WELL 1 CAUSTIC SODA DELIVERY 2477.54 04/30/2026 VERIZON WIRELESS 1490.03
6141239309 Invoice 04/16/2026 PUBLIC WORKS CELL SERVICES MAR 17 - APR 16, 2026 1490.03 04/30/2026 Walid Elsayed 1141.94
04272026 Invoice 04/28/2026 lodging parking mileage per diem FTO Upd 5/19/26 1141.94 04/30/2026 WALLACE GROUP 4551.81
67447 Invoice 03/31/2026 CIP 1259 DESIGN SERVICES THROUGH FEB 2026 1507.25 67688 Invoice 04/20/2026 CIP 1259 PROFESSIONAL DESIGN SERVICES MARCH 2026 3044.56 04/30/2026 Will Dahlstrom 87
2001268.002 Invoice 04/29/2026 2001268.002 3792 GHUp/Low 4.19.26 SDRfd 87 04/30/2026 Willdan Financial Services 50382.88
00423732 Invoice 04/01/2026 CIP 1259 CONST. MGMT. SERVICES THROUGH FEB 2026 50382.88 04/30/2026 Yadra Miranda Menndez 87
2001267.002 Invoice 04/29/2026 2001267.002 R3782 16th 4.19.26 SDRfd 87 4/30/2026 1:13:09 PM Page 4 of 5
Discount
0.00 0.00
0.00 0.00
0.00 0.00
Check Report - Summary Date Range: 04/30/2026 - 04/30/2026 All Bank Codes Check Summary
Payable
Count
Payment
Payment Type Count Payment
Regular Checks 71 43 592,819.92
Manual Checks 0 0 0.00
Voided Checks 0 0 0.00
4/30/2026 1:13:09 PM Page 5 of 5
Bank Drafts 0 0 0.00
EFT's 0 0 0.00
71 43 592,819.92
DESCRIPTION OF RESOURCES AMOUNT
Balance from March 31, 2026 $ 4,902,065.41
Deposit from Interest 4/30/2026 14,827.07
Total Resources $ 4,916,892.48
DESCRIPTION OF EXPENDITURES AMOUNT
Transfers for Non-Construction and Other:
Total Expenditures $0.00
Cash Balance as of April 30, 2026 $ 4,916,892.48
Respectfully,
Nick Szamet
Administrative Services Director
CITY OF GROVER BEACH
2025 SEWER BOND ACCOUNT ($5,000,000)
Treasurer's Report for May 26, 2026 City Council Meeting April 1, 2026 to April 30, 2026
Agenda Item No. 4
Placement: Consent
Meeting Date: May 26, 2026
MINUTES
CITY COUNCIL MEETING
MONDAY, MAY 11, 2026
CALL TO ORDER Mayor Dee called the meeting to order at 6:00 p.m. in the City Hall Council Chamber, 154 South Eighth Street, Grover Beach, California.
FLAG SALUTE The flag salute was led by Marian Cardenas Fiero, a 9-year-old, 3rd grade student at Grover Heights Elementary School.
ROLL CALL
City Council: Council Members Kathy McCorry-Driscoll, Jules Tuggle, Clint Weirick, Mayor Pro Tem Robert Robert, and Mayor Kassi Dee were present.
City Staff: City Manager Matthew Bronson, City Attorney Jennifer Thompson, Assistant City Manager Kristin Eriksson, City Clerk Wendi Sims, Police Chief Jim Munro, Administrative Services Director Nick Szamet, Community Development Director Megan Martin, and Five Cities Fire Authority Fire Chief Scott Hallett were also present.
CLOSED SESSION ANNOUNCEMENTS
None.
AGENDA REVIEW
Action: Upon unanimous consensus, the Council adopted the agenda as presented
CEREMONIAL CALENDAR
1. Proclamation for Public Works Week, May 17-23, 2026, read by Council Member McCorryDriscoll and accepted by Assistant City Manager/Acting Public Works Director Eriksson.
PRESENTATIONS
2. Introduction of New Employees – City Manager Bronson introduced new employees: Todd Bartolome, Senior Engineer; Mark McKibbon, Human Resources Officer; and Angela Nessor, Code Compliance Officer
PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council, but were not listed on the agenda.
• Justus Janzen & Ryan Simon
• Kelvin Coveduck
• Brenda Auer
• Charles Varni
• Andrea Seastrand
• Randall Myrick
Agenda Item No. 5
Placement: Consent
Meeting Date: May 26, 2026
Minutes: City Council Meeting Page 2
Monday, May 11, 2026
No further comments were received, and the Mayor closed the Public Communications segment for this portion of the meeting.
CONSENT AGENDA
Prior to consideration of the Consent Agenda, Mayor Dee opened public comment. • Kelvin Coveduck
• Debbie Peterson
• Brenda Auer
• Loren Westphal
There being no additional public comments received, and the Mayor closed public comment.
It was motioned by Mayor Dee and seconded by Council Member McCorry-Driscoll to approve Consent Agenda Item Nos. 3, and 4 as recommended. The motion carried on the following roll call vote:
AYES: Council Members – McCorry-Driscoll, Tuggle, Weirick, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
3. Minutes of the City Council Meeting on Monday, April 27, 2026 Action: Approved the minutes as submitted.
4. Certification of Signatures for a Citizen Initiative to Limit Certain Building Heights and Establish a Minimum Commercial Component in Mixed-Use Development Action: Accepted the Petition and Certification of Signatures for a Citizen Initiative to Limit Certain Building Heights and Establish a Minimum Commercial Component in Mixed-Use Development and scheduled an agenda item for the June 8, 2026 meeting to receive a Ballot Measure Report and consider adoption of the ordinance as written in the petition or submission of the ordinance to voters for the November 2026 election.
At 6:40 p.m. Council Member Weirick requested with agreement of Council to pull Item 5 for discussion and separate consideration.
5. Award of Construction Contract for Measure K-14 Street Improvements for CIP 2295- 17 Mayor Dee opened public comment on item 5. There being no public comments received, the Mayor closed public comment.
Action: It was motioned by Mayor Dee and seconded by Council Member Tuggle to approve Consent Agenda Item No. 5 to Award the contract for construction of Capital Minutes: City Council Meeting Page 3
Monday, May 11, 2026
Improvement Project 2295-17 as part of the Measure K-14 Street Rehabilitation Program to JJ Fisher Construction, Inc. in the amount of $2,499,999 for the Base Bid; authorized the City Manager to sign and affirm change orders for construction and construction management up to an aggregate of $300,000; and authorized the Mayor to execute the contract on behalf of the City. The motion carried on the following roll call vote:
AYES: Council Members – McCorry-Driscoll, Weirick, Tuggle, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
PUBLIC HEARING
6. Public Hearing and Second Reading of an Ordinance to Amend Chapter 119 (Fireworks) of Title XI (Business Regulations) to Regulate Social Hosts Allowing Illegal Fireworks
Mayor Dee read the title to the foregoing item and deferred to staff for a report.
Assistant City Manager Eriksson gave a PowerPoint Presentation on the changes to the Social Host Ordinance.
Mayor Dee declared the Public Hearing open and invited public comment on this matter.
There being no public comments received, the Mayor Closed the Public Hearing.
Action: It was motioned by Council Member Weirick and seconded by Council Member Tuggle to conduct a public hearing and second reading and adopt an Ordinance Amending Chapter 119 (Fireworks) of Title XI (Business Regulations); and adopt a Resolution to apply the changes in the ordinance retroactively to citees issues citations in 2025. The motion carried on the following roll call vote:
AYES: Council Members – McCorry-Driscoll, Weirick, Tuggle, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
Ordinance No. 26-02: An Ordinance of the City Council of the City of Grover Beach, California, Amending Section 119.08 (Social Hosts) of Chapter 119 (Fireworks) of Article XI (Business Regulations) to Regulate Social Hosts Who Allow Illegal Fireworks.
Resolution No. 26-13: A Resolution of the City Council of the City of Grover Beach, California, Waiving Certain Fines Associated with Violation of Grover Beach Municipal Code Chapter 119 Fireworks.
REGULAR BUSINESS
Minutes: City Council Meeting Page 4
Monday, May 11, 2026
7. Appointment to the Planning Commission
Mayor Dee read the title to the foregoing item and deferred to staff for a report.
City Manager Bronson reviewed the interview process, and Mayor Dee introduced the first applicant and proceeded with the interviews.
1. Robert Perrault
2. David Halverson
3. Dominic Dal Porto
4. Loren Westphal
5. Robert Hobson
6. Charles McClure – Did not attend
7. Brian Jeffries
8. Greg Vine
9. Shilo Terek
Mayor Dee invited public comment on this matter.
• Brenda Auer
No further public comments were received at this time and the Mayor closed public comment.
RECESS: Mayor Dee requested a recess; upon consensus of the City Council the meeting recessed at 8:02 p.m.
RECONVENED: At 8:11 p.m. the meeting was reconvened with all members of Council present.
Action: It was motioned by Mayor Dee and seconded by Mayor Pro Tem Robert to conduct interviews of applicants and make appointments to fill three seats on the Planning Commission, David Halverson and Dominic Dal Porto with two terms ending in 2030 and Greg Vine with one term ending in 2028, the remaining term of former Commissioner Hoffman’s seat. The motion carried on the following roll call vote:
AYES: Council Members – McCorry-Driscol, Weirick, Tuggle, Mayor Pro Tem Robert and Mayor Dee
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
8. FY 2026-27 Budget Update and Draft Work Programs for Council Goals and Priorities Mayor Dee read the title to the foregoing item and deferred to staff for a report.
Administrative Services Director Szamet and Assistant City Manager Eriksson reviewed Minutes: City Council Meeting Page 5
Monday, May 11, 2026
and gave a PowerPoint Presentation on the Budget Update.
Mayor Dee invited public comment on this matter.
• Loren Westphal
• Brenda Auer
No further public comments were received at this time and the Mayor closed public comment.
Action: The City Council received a report on the FY 2026-27 budget development process and draft work programs for Council Goals and Priorities and provided input and direction to staff.
9. Five Cities Fire Authority Community Risk Assessment/Standards of Cover Deployment Analysis
Mayor Dee read the title to the foregoing item and deferred to staff for a report.
City Manager Bronson briefly gave background information on this item and Five Cities Fire Chief Hallett gave a PowerPoint Presentation discussing the Risk Assessment/Standards Analysis.
Mayor Dee invited public comment on this matter.
• Loren Westphal
• Breanda Auer
No further public comments were received at this time and the Mayor closed public comment.
Action: The City Council received a report on the FY 2026-27 budget development process and draft work programs for Council Goals and Priorities and provided input and direction to staff.
COUNCIL COMMITTEE REPORTS
A. Council Member McCorry-Driscoll mentioned REACH had an Aviation Summitt and Central Coast Community Energy (3CE) Conference is taking place in Sacramento starting Wednesday.
B. Council Member Tuggle stated she attended the WRAC meeting and South County Chamber of Commerce (SCCC) has their Rise and Shine Mixer on Wednesday morning.
C. Mayor Dee reported on attending the SLO Regional Transit Authority Board meeting.
Minutes: City Council Meeting Page 6
Monday, May 11, 2026
D. Mayor Pro Tem Robert said he attended the SLO Council of Governments (SLOCOG) meeting as Mayor Dee’s alternate.
COUNCIL COMMUNICATIONS
Council Member McCorry-Driscoll said she is very proud of the Planning Commission appointments and all the applicants who applied.
Council Member Tuggle reported on attending the Diablo Tour, requested agreement from the Council to move forward with the Skate Park discussion/fundraising. The Council agreed the next step would be to send this item to the Parks, Recreation and Beautification Commission.
Council Member Weirick discussed he attended Congressman Salud Carbajal’s Town Hall meeting on May 4th and he also attended the JPIA California Joint Powers Insurance Authority Elected Officials Summit from April 29th – May 1st.
Mayor Pro Tem Robert mentioned the Line Dancing at The Grange will take place on Friday Night instead of Thursday at 6:00pm – 8:00pm.
Mayor Dee highlighted a few events she attended in Grover Beach, Tour through Grover Beach, Bike to School Day on May 6th, Grover Beach Library Party and the Mother Son Dance. She also requested and received consensus from the Council to provide a Proclamation to the South County Historical Society for their 50th Anniversary.
CITY MANAGER'S REPORTS AND COMMENTS
City Manager Bronson noted the Water Supply Public Outreach Meeting is at the Ramona Center on Wednesday, May 13th at 6:00pm and next Outreach meeting will take place on Tuesday, June 16th at 6:00pm, same location. And lastly, he announced the Grand Re-Opening Ribbon Cutting for the Ramona Park Project is on Thursday June 11th from 1:00pm – 3:00pm.
CITY ATTORNEY’S REPORTS AND COMMENTS
None.
CLOSED SESSION
None.
Minutes: City Council Meeting Page 7
Monday, May 11, 2026
ADJOURNMENT
There being no further business to come before the City Council, Mayor Dee adjourned the meeting at 9:47 p.m.
_____________________________
KASSI DEE, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 6
Placement: Consent
Meeting Date: May 26, 2027
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Wendi Sims, City Clerk
SUBJECT: Appointments to the Planning Commission
RECOMMENDATION
Adopt a Resolution for appointments to the Planning Commission including re-appointment of David Halverson to a four-year term of office, and appointment of Dominic Dal Porto to a fouryear term of office, both scheduled to expire May 31, 2030 and appointment of Greg Vine to the remaining two-years of office of former Commissioner Hoffman’s term, scheduled to expire May 31, 2028.
BACKGROUND
Three vacancies have arisen on the Planning Commission due to the expiration of the four-year terms of Commissioners David Halverson and Anne Holden, which expire on May 31, 2026, and the resignation of Former Commissioner Maia Hoffman, whose term will expire on May 31, 2028.
These vacancies were listed in Local Appointments List of All Boards, Commissions, and Committees scheduled vacancies for Calendar Year 2026. The list was posted on or prior to December 31, 2025, in the local newspapers, noticed on the City’s website, government cable access Channel 20, and posted on the bulletin board located at City Hall.
At the May 11, 2026 meeting, the Council conducted interviews during the regularly scheduled meeting of eight qualified applicants. The Council chose to re-appoint David Halverson and appoint Dominic Dal Porto, both to four-year terms to expire on May 31, 2030, and to appoint Greg Vine to the remaining two years of Commissioner Hoffman’s term to expire on May 31, 2028.
Adoption of the Resolution will officially approve these selections for the Commission members to begin serving their new terms at the next scheduled Planning Commission meeting on June 2.
FISCAL IMPACT
There are no funding impacts to this staff report.
Staff Report: Appointment to Planning Commission Page 2 May 26, 2026
ALTERNATIVES
The City Council has the following alternatives to consider:
1. Adopt a Resolution for appointment to the Planning Commission including reappointment of David Halverson to a four-year term of office, and appointment of Dominic Dal Porto to a four-year term of office, both scheduled to expire May 31, 2030 and appointment of Greg Vine to the remaining two-years of office of former Commissioner Hoffman’s term, scheduled to expire May 31, 2028.
2. Do not adopt Resolution; or
3. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
ATTACHMENTS
1. Resolution
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 ☐ Street Improvements and Maintenance
RESOLUTION NO. 26-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER
BEACH, CALIFORNIA AUTHORIZING THE APPOINTMENT OF DAVID
HALVERSON, DOMINIC DAL PORTO AND GREG VINE TO THE
GROVER BEACH PLANNING COMMISSION
WHEREAS, the Planning Commission is a body of five lay citizens; and WHEREAS, three (3) vacancies currently exist on the Commission due to the scheduled expiration of two (2) four-year Commissioner terms of office, and the remaining term of former Planning Commissioner Maia Hoffman; and
WHEREAS, the City actively solicited potential candidates to serve on the Planning Commission; and
WHEREAS, it is the responsibility of the City Council to interview prospective citizens during a regular meeting and select the candidates for appointment; and WHEREAS, these interviews took place at the regularly scheduled City Council Meeting on May 11, 2026; and
WHEREAS, at the conclusion of those interviews the Council made a recommendation to the Council for appointments.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach hereby approves the appointment to the Planning Commission of:
1. David Halverson to a four-year term of office, scheduled to expire on May 31, 2030;
2. Dominic Dal Porto to a four-year term of office, scheduled to expire on May 31, 2030; and
3. Greg Vine to the remaining term of Maia Hoffman, scheduled to expire on May 31, 2028.
On motion by ________, second by ________, and on the following roll-call vote, to wit:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 26th day of May 2026. _____________________________
KASSI DEE, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK
Attachment 1
CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 7
Placement: Consent
Meeting Date: May 26, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Erin Wiggin, CIP Manager
SUBJECT: Resolution Confirming a List of Street Projects Funded by SB 1: The Road Repair and Accountability Act
RECOMMENDATION
Adopt a Resolution to incorporate the list of street projects funded by SB 1: The Road Repair and Accountability Act into the FY 2026-27 budget.
BACKGROUND
On April 28, 2017, the Governor signed Senate Bill (SB) 1 (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017. The Act addresses basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and road system. SB 1 increased per gallon fuel excise taxes; diesel fuel sales taxes and vehicle registration fees; and provided for inflationary adjustments to tax rates in future years. As part of the Act, the bill created the Road Maintenance and Rehabilitation Account (RMRA) to fund road maintenance and other projects. To receive RMRA funding each year, cities and counties must submit a list of projects to the California Transportation Commission (CTC). All projects proposed must be adopted by resolution by the City Council at a regular public meeting.
The City has received approximately $2,100,000 in RMRA funding to date. This funding has been previously allocated for design of street repair projects on several major streets including North 4th Street (West Grand Avenue to Ocean View Avenue), South Oak Park Boulevard (West Grand Avenue to Mentone Avenue), West Grand Avenue (4th Street to 8th Street) and West Grand Avenue (11th Street to Oak Park Boulevard) along with the construction of the South Oak Park Boulevard project (CIP 2284). For FY 2026-27, staff is recommending allocation of SB 1 funds for final design and construction of the North 4th Street Major Street Rehabilitation Project (CIP 2285) which is scheduled to begin in 2027. The project budget includes this funding given the use of SB 1 funding for initial design work. Pending Council action to confirm the use of SB 1 funds, staff will send a copy of the adopted resolution to the CTC pursuant to direction from CTC staff.
FISCAL IMPACT
Adoption of this Resolution will allow the City to receive SB 1 funding which estimated to be $358,840 for FY 2026-27. Depending on additional revenue estimates by the CTC and State Controller, additional funding may be available for programming in the future.
Staff Report: Resolution Confirming SB-1 Projects Page 2 May 26, 2026
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt the Resolution to incorporate the list of street projects funded by SB 1: The Road Repair and Accountability Act into the FY 2026-27 budget; or
2. Do not adopt the Resolution and do not fund the above capital projects or fund them using other funding sources; or
3. Provide staff with alternative direction.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
ATTACHMENTS
1. Resolution
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 ☒ Street Improvements and Maintenance
RESOLUTION NO. 26-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27 FUNDED BY THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 (SB 1) WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City of Grover Beach must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Grover Beach will receive an estimated $358,840 in RMRA funding in Fiscal Year 2026-27 from SB 1; and
WHEREAS, this is the tenth year in which the City of Grover Beach is receiving SB 1 funding and will enable the City of Grover Beach to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City of Grover Beach has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City of Grover Beach used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City of Grover Beach rehabilitate N. 4th Street; and
WHEREAS, the current Pavement Condition Index (“PCI”) value is 55 for the City’s Major Streets and this revenue will help us increase the overall quality of our road system and over the next decade it will help bring our streets and roads to a PCI of 65; and Attachment 1
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits countywide.
NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Grover Beach, State of California, as follows:
1. The foregoing recitals are true and correct.
2. The following previously proposed and adopted project may utilize Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account revenues in its delivery. With the relisting of this project in the adopted fiscal year resolution, the City of Grover Beach is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:
Project Title: CIP 2285 Major Street Rehabilitation North 4th Street Project Description: Pavement Rehabilitation (Grind and Overlay) and concrete curb ramp improvements – design and construction
Project Location: North 4th Street from West Grand Avenue to Ocean View Estimated Project Schedule: Design (6/2026-12/2026), Construction (02/2026- 08/2026) based on the component being funded with RMRA funds Estimated Project Useful Life: 15 years
On motion by Council Member, seconded by Council Member, and on the following rollcall vote, to wit:
AYES: Council Member –
NOES: Council Member –
ABSENT: Council Member –
ABSTAIN: Council Member –
RECUSED: Council Member –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 26th day of May 2026. ___________________________________
KASSI DEE, MAYOR
Attest:
_______________________________
WENDI SIMS, CITY CLERK
CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 8
Placement: Public Hearing
Meeting Date: May 26, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Assistant City Manager
Mark McKibben, Human Resources Officer
SUBJECT: City Vacancies Report Pursuant to Assembly Bill 2561
RECOMMENDATION
Conduct a public hearing and receive a report on the City’s vacancies and recruitment and retention efforts, including any presentations from the City’s represented bargaining units, pursuant to Assembly Bill (AB) 2561
BACKGROUND
AB 2561 was enacted in 2024 and requires public agencies to report on staffing vacancies and recruitment and retention efforts, including any challenges and potential policy obstacles to recruitment. AB 2561 also provides that if vacancy rates in any recognized employee bargaining unit exceed 20% of positions, agencies must provide further specified information if requested by the bargaining unit. Further, AB 2561 requires agencies to provide an opportunity to bargaining units to present their perspectives at the hearing.
Recruitment and retention of staff is important to the City consistent with our organization’s Purpose and Principles. The City prioritizes a positive workplace culture and investment in staff development and training along with competitive compensation packages commensurate with other local agencies. The City has two represented bargaining groups, including the Service Employees International Union (SEIU), representing 22.0 full time equivalent positions (FTEs), as well as the Police Officers Association (POA), representing 24.0 FTEs. Additionally, the City has
24.0 unrepresented management and confidential FTEs and one temporary position. This report provides data on City employment vacancies as of December 31, 2025.
Vacancies
Position vacancies may occur for various reasons throughout any given year, including internal promotion or transfer of a staff member, retirements, resignations, terminations, or due to approval of a new position. When vacancies occur, the City’s Human Resources Officer works with the affected department to fill the position(s) to maintain operations; ensure continued quality, efficient services to the community; and to reduce the need for overtime. Total vacancies by bargaining group as of December 31, 2025, are listed in the chart on the following page:
Staff Report: City Vacancies Report Pursuant to Assembly Bill 2561 Page 2 May 26, 2026
Employee Bargaining Group Total Number of
Vacancies
Vacancy Rate
SEIU 3.0 13.6%
POA 3.5 14.6%
Unrepresented 0.0 0.0%
Total 6.5 8.6%
Staff would note that while there were three vacancies among positions in the SEIU bargaining group as of December 31, 2025, recently conducted and planned recruitments this year will reduce the number of vacancies. Also, the Police Department was fully staffed for the first half of the fiscal year but had three POA members leave in November 2025 due to retirement, relocation, and probationary release. The City subsequently opened a recruitment process for a Police Cadet and received 82 applications. Currently, there are two candidates for hire in background, two remain on the eligibility list and an experienced lateral candidate from another agency is also currently in the background process. Applications for vacancies in the Police Department are accepted on a continuous basis.
Recruitment and Retention of Staff
The City employs various recruitment strategies, including posting vacancies on the City’s website and recruitment portal as well as industry-specific job boards; reaching out to known potential candidates in the area; and advertising open positions on the City’s social media platforms and the Grover Gazette monthly newsletter. The City posted 12 recruitments in 2025 and made 10 hires/promotions during the year.
The City also employs various strategies for retaining existing staff, including maintaining competitive compensation; investing in staff training and development; counseling staff on promotional avenues available at the City and regular engagement with and recognition of staff.
The City prioritizes making staff feel appreciated, supported and valued in the organization. The City’s employee retention rate for 2025 was approximately 91%, which illustrates a strong retention rate of employees throughout the year.
FISCAL IMPACT
There are no funding impacts to this staff report.
ALTERNATIVES
The Council has the following alternatives to consider:
1) Conduct a public hearing and receive a report on the City’s vacancies and recruitment and retention efforts, including any presentations from the City’s represented bargaining units, pursuant to Assembly Bill (AB) 2561; or
2) Provide alternative direction to staff.
Staff Report: City Vacancies Report Pursuant to Assembly Bill 2561 Page 3 May 26, 2026
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
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 ☐ Street Improvements and Maintenance
CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 9
Placement: Business
Meeting Date: May 26, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Assistant City Manager
Nick Szamet, Administrative Services Director
SUBJECT: Measure K-14 Bond Street Bond Issuance
RECOMMENDATION
Adopt the Resolution authorizing the issuance and sale of not to exceed $5,000,000 principal amount of General Obligation Bonds for Measure K-14 street repairs and authorizes actions related to the issuance of the General Obligation Bonds.
BACKGROUND
The City Council approved the Resolution of Intent on March 23, 2026, to issue general obligation bonds in the aggregate principal amount of $5,000,000 (the “Series 2026 Bonds”) which would fund the next set of Measure K-14 street repair projects over the next 1-2 years. It is estimated that the issuance of the Series 2026 Bonds in the par amount of $5,000,000 would lead to a 2026- 27 tax rate of $93.78 per $100,000 property valuation compared with the current tax rate for 2025- 26 of $85.00 per $100,000 valuation. Staff would note that the actual tax rates for these bonds have been consistently less than projected with each issuance given the increased property valuation in the city. In addition, the projected 2026-27 tax rate of $93.78 is below the projected rate of $95.00 in 2022-23 when the last bond was issued in 2022.
As noted in the March 23, 2026 staff report, there are certain actions that need to occur to ensure the Series 2026 Bonds are sold in June and funds are made available shortly thereafter for street repairs. The first action was taken on March 23 with the adoption of Resolution No. 26-09 authorizing staff to proceed with planning for the issuance and sale of the Series 2026 Bonds.
The next step is the adoption of a Resolution authorizing the issuance and sale of the Series 2026 Bonds and approving certain actions related to the issuance of the Series 2026 Bonds.
Bond Issuance Summary
Kutak Rock LLP, the City’s Bond Counsel, has drafted the recommended Resolution for City Council consideration shown in Attachment 1. Once adopted, the Resolution authorizes the sale of the Series 2026 Bonds, directs a City representative to review and approve the Preliminary Official Statement shown in Attachment 3, and authorizes the publishing of the Notice of Sale, attached as an exhibit to the Resolution. Further, upon the issuance of the Series 2026 Bonds, the City will enter into a Continuing Disclosure Certificate whereby the City agrees to provide ongoing annual financial information to the holders of the Series 2026 Bonds. The following is a summary of these provisions:
Staff Report: Measure K-14 Bond Street Bond Issuance Page 2 May 26, 2026
Bond Issue Amount – As noted in the Resolution at the March 23, 2026 City Council meeting, the recommended bond issue is in a not to exceed amount of $5,000,000. Attached in Attachment 2 is the General Obligation estimated Time Schedule developed by the City’s Financial Advisor, A. M. Peché & Associates LLC. All net proceeds of $5,000,000 (after the payment of costs of issuance from bond premium) resulting from the sale of the Series 2026 Bonds must be spent on the Measure K-14 Street Repair and Rehabilitation program during a three-year period following the sale of the Series 2026 Bonds. In the future, the City Council will continue to have the authority to determine and approve the not-to-exceed principal amount of the bonds the City issues and control the frequency of such bonds issued until the total authorization amount of $48,000,000 is reached. After the sale of the Series 2026 Bonds, there will be $5,000,000 of bond authorization that can be sold when needed for additional street improvements.
Official Statement –Section 3.03 of the Resolution authorizes a representative of the City to review and approve the preliminary Official Statement. The Official Statement provides relevant information regarding the Series 2026 Bonds, including operating and financial information on the City and the levy of the ad valorem tax. Specifically, the Official Statement includes information relative to the assessed value of properties in the City, City general budget information, City revenues and expenses, and City demographics. The City is responsible for the content of the Official Statement, which is subject to federal securities laws.
Ongoing Disclosure – Under Section 5.07 of the Resolution, the City covenants and agrees to comply with the provisions of the Continuing Disclosure Certificate (attached as an appendix to the Official Statement). The City is required to provide investors on an annual basis the City’s annual audit, certain other financial information, information related to the ad valorem tax levy and the assessed values of property within the City. The City is already providing this information to holders of the City’s outstanding general obligation bonds so this is not a new requirement or obligation for the City.
Official Notice of Sale – Section 3.01 of the Resolution authorizes the sale of the Series 2026 Bonds by competitive bid in accordance with the Official Notice of Sale, which is included as an exhibit in the Resolution. The Official Notice of Sale provides notice to investment banks regarding the details of the competitive sale of the Series 2026 Bonds and the terms for bids for the purchase of the Series 2026 Bonds.
Reimbursement – The Resolution allows the City to reimburse itself from Bond proceeds for Capital costs related to the Street Rehabilitation Program incurred by the City prior to the actual receipt of Bond proceeds.
Next Steps – The City’s Financial Advisor has transmitted the preliminary Official Statement to the Standard and Poor’s Global Ratings (S&P), along with other information requested by the S&P analysts. At the last bond issuance in 2022, the City received a rating of “AA” which demonstrates the City’s strong financial position. A conference call is scheduled with S&P on May 26 where City staff and the Financial Advisor will respond to questions from the S&P analysts.
Following the completion of the rating process, the Series 2026 Bonds will be sold through a competitive sale in June and the financing is expected to close in late June 2026. The proceeds of $5,000,000 from the Series 2026 Bonds will be wired to the City’s bank account upon closing to begin using for street repair projects.
Staff Report: Measure K-14 Bond Street Bond Issuance Page 3 May 26, 2026
SB 450 Disclosure
Senate Bill 450 (Chapter 625 of the 2017-2018 Session of the California Legislature) (“SB 450”) requires that the City Council obtain from an underwriter, municipal advisor or private lender and disclose, prior to authorization of the issuance of bonds, including debt instruments such as the Series 2026 Bonds, with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public:
(a) the true interest cost of the Series 2026 Bonds;
(b) the sum of all fees and charges paid to third parties with respect to the Series 2026 Bonds; (c) the amount of proceeds of the Series 2026 Bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Series 2026 Bonds; and
(d) the sum total of all debt service payments on the Series 2026 Bonds calculated to the final maturity of the Series 2026 Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Series 2026 Bonds.
In compliance with SB 450, the City obtained from the City’s Financial Advisor, the required good faith estimates and such estimates are disclosed and set forth as follows:
(a) All-In True Interest Cost of the Series 2026 Bonds: 4.92405%. (b) Finance Charge of the Series 2026 Bonds: $225,000 (which includes an estimated underwriter discount of $50,000).
(c) Amount of Proceeds to be received by the City: $5,000,000. (d) Total Payment Amount: $10,932,361.11, an estimated payback ratio of 2.19 times.
FISCAL IMPACT
Adopting the Resolution will authorize the issuance and sale of Series 2026 Bonds in the not to exceed principal amount of $5,000,000. The $5,000,000 in proceeds from the Bond Issuance will be used to fund the Measure K-14 Street Repair and Rehabilitation Program. After this sale of the Series 2026 Bonds, there remains $5,000,000 of bond authorization that can be sold when needed for additional street improvements.
ALTERNATIVES
The City Council has the following alternatives to consider:
1. Adopt the Resolution as recommended; or
2. Adopt a modified Resolution; or
3. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Staff Report: Measure K-14 Bond Street Bond Issuance Page 4 May 26, 2026
ATTACHMENTS
1. Resolution Authorizing the Issuance of General Obligation Bonds (including the Official Notice of Sale)
2. General Obligation Bond Time Schedule
3. Preliminary Official Statement
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 ☒ Street Improvements and Maintenance
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RESOLUTION NO. 26-__
RESOLUTION OF THE CITY OF GROVER BEACH AUTHORIZING THE
ISSUANCE AND SALE OF NOT TO EXCEED $5,000,000 PRINCIPAL
AMOUNT OF GENERAL OBLIGATION BONDS TO FINANCE
IMPROVEMENTS TO STREETS, AND AUTHORIZING ACTIONS
RELATED THERETO
WHEREAS, the City of Grover Beach (the “City”) is empowered under Article 1 of Chapter 4 of Part 3 of Division 4 of Title 4 of the Government Code of the State of California, commencing with Section 43600 thereof, and Section 53506 et seq. of the Government Code of the State of California (the “Bond Law”) to its issue general obligation bonds which are authorized by two-thirds of the electors voting on the proposition; and WHEREAS, more than two-thirds of the electors voting at a municipal election held on November 4, 2014, voted in favor of Proposition K-14 (the “Bond Authorization”) authorizing the issuance by the City of general obligation bonds in the aggregate principal amount of up to $48,000,000 for the purpose of providing funds to repair and resurface deteriorating residential and major streets (the “Improvements”); and
WHEREAS, on March 25, 2015, the City issued and sold the first series general obligation bond pursuant to the Bond Authorization, entitled the “City of Grover Beach (San Luis Obispo County, California) 2015 General Obligation Bonds (Street Improvements)” (the “2015 Bonds”), in the principal amount of $5,000,000; and WHEREAS, on March 30, 2016, the City issued and sold the second series of general obligation bond pursuant to the Bond Authorization, entitled the “City of Grover Beach (San Luis Obispo County, California) 2016 General Obligation Bonds (Street Improvements)” (the “2016 Bonds”), in the principal amount of $8,000,000; and WHEREAS, on December 20, 2017, the City issued and sold the third series of general obligation bond pursuant to the Bond Authorization, entitled the “City of Grover Beach (San Luis Obispo County, California) 2017 General Obligation Bonds (Street Improvements),” in the principal amount of $15,000,000; and
WHEREAS, on January 26, 2022, the City issued and sold the fourth series of general obligation bond pursuant to the Bond Authorization, entitled the “City of Grover Beach (San Luis Obispo County, California) 2022 General Obligation Bonds (Street Improvements),” in the principal amount of $10,000,000;
WHEREAS, the City is authorized to issue $10,000,000 of additional general obligation bonds under the Bond Authorization; and
WHEREAS, the City Council wishes at this time to authorize the issuance and sale of its fifth series of general obligation bonds under the Bond Authorization in the aggregate principal amount of not to exceed $5,000,000 (the “Bonds”) under this Resolution and in conformity with the Bond Law.
Attachment 1
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NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY OF GROVER BEACH AS FOLLOWS:
ARTICLE I
DEFINITIONS; AUTHORITY
SECTION 1.01. Definitions. The terms defined in this Section 1.01, as used and capitalized herein, shall, for all purposes of this Resolution, have the meanings given them below, unless the context clearly requires some other meaning. “Bond Authorization” means Proposition K-14 submitted to and approved by more than two-thirds of the voters of the City on November 4, 2014, under which the issuance of the Bonds has been authorized.
“Bond Counsel” means: (a) Kutak Rock LLP; and (b) any other attorney or firm of attorneys nationally recognized for expertise in rendering opinions as to the legality and tax exempt status of securities issued by public entities.
“Bond Insurer” means any insurance company which issues a municipal bond insurance policy insuring the payment of principal and interest on the Bonds. “Bond Law” means Article 1 of Chapter 4 of Part 3 of Division 4 of Title 4 of the Government Code of the State of California, commencing with Section 43600 thereof, and Section 53506 et seq. of the Government Code of the State of California, as in effect on the date of adoption hereof and as amended hereafter.
“Bond Purchase Agreement” means the Bond Purchase Agreement for the Bonds, which is approved under Section 3.02.
“Bond Sale Documentation” means: (a) if the Bonds are sold by competitive bidding in accordance with Section 3.01, the Official Notice of Sale and the winning bid of the Original Purchaser; or (b) if the Bonds are sold by negotiation in accordance with Section 3.02, the Bond Purchase Agreement between the City and the Original Purchaser. “Bonds” means the City of Grover Beach (San Luis Obispo County, California) 2026 General Obligation Bonds (Street Improvements) authorized to be issued under this Resolution in the aggregate principal amount of not to exceed $5,000,000. “City” means the City of Grover Beach, a general law city and municipal corporation organized under the Constitution and laws of the State of California, and any successor thereto. “City Representative” means the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Administrative Services Director, City Clerk and any other officer of the City authorized by resolution of the City Council of the City to act on behalf of the City with respect to this Resolution and the Bonds.
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“Closing Date” means the date upon which there is a physical delivery of the Bonds in exchange for the amount representing the purchase price of the Bonds by the Original Purchaser. “Costs of Issuance” means all items of expense directly or indirectly payable by or reimbursable to the City and related to the authorization, issuance, sale and delivery of the Bonds, including but not limited to the costs of preparation and reproduction of documents, printing expenses, filing and recording fees, initial fees and charges of the Paying Agent and its counsel, legal fees and charges, fees and disbursements of consultants and professionals, rating agency fees, fees and charges for preparation, execution and safekeeping of the Bonds and any other cost, charge or fee in connection with the original issuance of the Bonds. “County” means the County of San Luis Obispo, a political subdivision of the State of California, duly organized and existing under the Constitution and laws of the State of California.
“Debt Service Fund” means the account established and held by the County under Section 4.03.
“Depository” means: (a) initially, DTC; and (b) any other Securities Depository acting as Depository under Section 2.09.
“Depository System Participant” means any participant in the Depository’s book-entry system.
“DTC” means The Depository Trust Company, New York, New York, and its successors and assigns.
“Government Obligations” means direct and general obligations of the United States of America, or obligations that are unconditionally guaranteed as to principal and interest by the United States of America, or “prerefunded” municipal obligations rated in the highest rating category by Moody’s Investors Service (“Moody’s”) or S&P Global Ratings, a Standard & Poor’s Financial Services LLC business (“S&P”). In the case of direct and general obligations of the United States of America, Government Obligations shall include evidences of direct ownership of proportionate interests in future interest or principal payments of such obligations.
Investments in such proportionate interests must be limited to circumstances where: (i) a bank or trust company acts as custodian and holds the underlying United States obligations; (ii) the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor of the underlying United States obligations; and (iii) the underlying United States obligations are held in a special account, segregated from the custodian’s general assets, and are not available to satisfy any claim of the custodian, any person claiming through the custodian, or any person to whom the custodian may be obligated; provided that such obligations are rated or assessed at least as high as direct and general obligations of the United States of America by either Moody’s or S&P.
“Interest Payment Date” means March 1 and September 1 of each year, commencing March 1, 2027.
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“Official Notice of Sale” means the Official Notice of Sale for the Bonds, which is approved under Section 3.01 and the form of which is set forth in Exhibit C. “Original Purchaser” means the original purchaser of the Bonds at the public or negotiated sale thereof.
“Outstanding,” when used as of any particular time with reference to Bonds, means all Bonds except: (a) Bonds theretofore canceled by the Paying Agent or surrendered to the Paying Agent for cancellation; (b) Bonds paid or deemed to have been paid within the meaning of Section 9.02; and (c) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the City under this Resolution. “Owner,” whenever used herein with respect to a Bond, means the person in whose name the ownership of such Bond is registered on the Registration Books. “Paying Agent” means the Paying Agent appointed by the City and acting as paying agent, registrar and authenticating agent for the Bonds, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section 6.01.
“Principal Office” means the office or offices of the Paying Agent for the payment of the Bonds and the administration of its duties hereunder, as such office or offices shall be identified in a written notice filed with the City by the Paying Agent. “Project Fund” means the fund established and held by the City under Section 4.02. “Record Date” means the 15th day of the month preceding an Interest Payment Date, whether or not such day is a business day.
“Registration Books” means the records maintained by the Paying Agent for the registration of ownership and registration of transfer of the Bonds under Section 2.08. “Resolution” means this Resolution, as originally adopted by the City Council on May 26, 2026, and including all amendments hereto and supplements hereof which are duly adopted by the City Council from time to time in accordance herewith. “Securities Depositories” means DTC; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other securities depositories as the City may designate.
“Supplemental Resolution” means any resolution supplemental to or amendatory of this Resolution, adopted by the City in accordance with Article VIII. “Tax Code” means the Internal Revenue Code of 1986 as in effect on the Closing Date or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the Closing Date, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under said Code. -5-
“Written Request of the City” means an instrument in writing signed by a City Representative or by any other officer of the City duly authorized to act on behalf of the City under a written certificate of a City Representative.
SECTION 1.02. Interpretation.
(a) Unless the context otherwise indicates, words expressed in the singular shall include the plural and vice versa and the use of the neuter, masculine or feminine gender is for convenience only and shall be deemed to include the neuter, masculine or feminine gender, as appropriate.
(b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(c) All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Resolution; the words “herein,” “hereof,” “hereby,” “hereunder” and other words of similar import refer to this Resolution as a whole and not to any particular Article, Section or subdivision hereof.
SECTION 1.03. Authority for this Resolution; Findings. This Resolution is entered into under the provisions of the Bond Law. It is hereby certified that all of the things, conditions and acts required to exist, to have happened or to have been performed precedent to and in the issuance of the Bonds do exist, have happened or have been performed in due and regular time and manner as required by the laws of the State of California, and that the amount of the Bonds, together with all other indebtedness of the City, does not exceed any limit prescribed by any laws of the State of California.
ARTICLE II
THE BONDS
SECTION 2.01. Authorization. Bonds in the aggregate original principal amount of not to exceed $5,000,000 are hereby authorized by the City to be issued by the City under and subject to the terms of the Bond Law and this Resolution, for the purpose of raising money to repair and resurface deteriorating residential and major streets, as provided in the Bond Authorization, and to pay the Costs of Issuance incurred in connection therewith. This Resolution constitutes a continuing agreement between the City and the Owners of all of the Bonds issued or to be issued hereunder and then Outstanding to secure the full and final payment of principal of and interest and premium, if any, on all Bonds which may be Outstanding hereunder, subject to the covenants, agreements, provisions and conditions herein contained. The Bonds are designated the “City of Grover Beach (San Luis Obispo County, California) 2026 General Obligation Bonds (Street Improvements).” SECTION 2.02. Terms of Bonds.
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(a) Principal Amount of Bonds. The Bonds are authorized to be issued in the aggregate principal amount of not to exceed $5,000,000. (b) Form; Numbering. The Bonds will be issued in fully registered form, without coupons, in authorized denominations of $5,000 each or any integral multiple thereof. The Bonds will be lettered and numbered as the Paying Agent prescribes. (c) Date of Bonds. The Bonds will be dated as of the Closing Date. (d) CUSIP Identification Numbers. “CUSIP” identification numbers will be imprinted on the Bonds, but such numbers do not constitute a part of the contract evidenced by the Bonds and no error or omission with respect thereto will constitute cause for refusal of the Original Purchaser to accept delivery of and pay for the Bonds. In addition, failure on the part of the City to use such CUSIP numbers in any notice to Owners of the Bonds will not constitute an event of default or any violation of the City’s contract with such Owners and will not impair the effectiveness of any such notice.
(e) Determination of Maturities and Interest Rates. The Bonds shall mature (or, alternatively, be subject to mandatory sinking fund redemption as hereinafter provided) on September 1 in each year commencing September 1, 2048 and continuing to and including September 1, 2051. The exact principal amount of the Bonds maturing on September 1 in each year shall be determined upon the sale of the Bonds, in accordance with the Bond Sale Documentation.
Each Bond will bear interest at the respective rates to be determined upon the sale of the Bonds in accordance with Article III. Interest on the Bonds is payable from the Interest Payment Date next preceding the date of authentication thereof unless:
• a Bond is authenticated as of an Interest Payment Date, in which event it will bear interest from such date;
• a Bond is authenticated prior to an Interest Payment Date and after the close of business on the preceding Record Date, in which event it will bear interest from such Interest Payment Date;
• a Bond is authenticated on or before the first Record Date, in which event it shall bear interest from the Closing Date; or
• at the time of authentication of a Bond, interest is in default thereon, in which event it will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon.
(f) Manner of Payment. Interest on the Bonds (including the final interest payment upon maturity) is payable by check of the Paying Agent mailed to the Owner thereof at such Owner’s address as it appears on the Registration Books at the close of business on the preceding Record Date; except that at the written request of the Owner of at least $1,000,000 aggregate principal amount of the Bonds, which written request is on file with the Paying Agent as of any -7-
Record Date, interest on such Bonds shall be paid by wire transfer on the succeeding Interest Payment Date to an account in the United States of America as shall be specified in such written request. Principal of and premium (if any) on the Bonds is payable in lawful money of the United States of America upon presentation and surrender at the Principal Office of the Paying Agent.
SECTION 2.03. Redemption.
(a) Optional Redemption. The Bonds shall be subject to redemption prior to maturity, at the option of the City, in whole or in part among maturities on such basis as designated by the City and by lot within a maturity, from any available source of funds, on the dates and upon payment of a redemption price (equal to the principal amount of Bonds to be redeemed together with a redemption premium, if any) as determined upon the sale of the Bonds in accordance with the Bond Sale Documentation.
(b) Mandatory Sinking Fund Redemption. If and to the extent specified in the Bond Sale Documentation, any maturity of the Bonds will be designated as “Term Bonds” which are subject to mandatory sinking fund redemption on September 1 in each of the years and in the respective principal amounts set forth in such bid, at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed, in each case without premium, together with interest accrued thereon to the redemption date. If some but not all of the Term Bonds have been redeemed under the preceding subsection (a) of this Section, the aggregate principal amount of Term Bonds to be redeemed in each year under this subsection (b) shall be reduced on a pro rata basis in integral multiples of $5,000, as designated in written notice filed by the City with the Paying Agent.
(c) Selection of Bonds for Redemption. Whenever less than all of the Outstanding Bonds of any one maturity are designated for redemption, the Paying Agent shall select the Outstanding Bonds of such maturity to be redeemed by lot in any manner deemed fair by the Paying Agent. For purposes of such selection, each Bond shall be deemed to consist of individual Bonds of $5,000 denominations which may be separately redeemed. (d) Redemption Procedure. The Paying Agent shall cause notice of any redemption to be mailed, first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption: (i) to the Securities Depositories and the Municipal Securities Rulemaking Board; and (ii) to the respective Owners of any Bonds designated for redemption, at their addresses appearing on the Registration Books. Such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice shall not affect the validity of the proceedings for the redemption of Bonds. The City is entitled to rescind any notice of optional redemption of the Bonds by written notice to the Paying Agent on or prior to the date fixed for redemption, and the Paying Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under this section.
Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption. The City and the Paying Agent have no liability to the Owners or any other party related to or arising from such rescission. -8-
Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the serial numbers of the Bonds to be redeemed by giving the individual number of each Bond or by stating that all Bonds between two stated numbers, both inclusive, or by stating that all of the Bonds of one or more maturities have been called for redemption, and shall require that such Bonds be then surrendered at the Principal Office of the Paying Agent for redemption at the said redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date.
Upon surrender of Bonds redeemed in part only, the City shall execute and the Paying Agent shall authenticate and deliver to the Owner, at the expense of the City, a new Bond or Bonds, of the same maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds.
From and after the date fixed for redemption, if notice of such redemption has been duly given and funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have been duly provided, such Bonds so called will cease to be entitled to any benefit under this Resolution other than the right to receive payment of the redemption price, and no interest will accrue thereon on or after the redemption date specified in such notice. The Paying Agent shall cancel all Bonds redeemed under this Section 2.03, and shall submit to the City a certificate of cancellation.
SECTION 2.04. Form of Bonds. The form of the Bonds, including the form of the Paying Agent’s Certificate of Authentication and the form of Assignment to appear thereon, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Resolution, are set forth in Exhibit A attached hereto.
SECTION 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the City by the facsimile signatures of its Mayor or City Manager and City Clerk who are in office on the date of adoption of this Resolution or at any time thereafter, and the seal of the City may at the City’s option be impressed, imprinted or reproduced by facsimile thereon. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to the Original Purchaser, such signature will nevertheless be as effective as if the officer had remained in office until the delivery of the Bonds to the Original Purchaser. Any Bond may be signed and attested on behalf of the City by such persons as at the actual date of the execution of such Bond are the proper officers of the City although at the nominal date of such Bond any such person does not serve as such officer of the City.
Only those Bonds bearing a Certificate of Authentication in the form set forth in Exhibit A attached hereto, executed and dated by the Paying Agent, will be valid or obligatory for any purpose or entitled to the benefits of this Resolution, and such Certificate of Authentication of the Paying Agent constitutes conclusive evidence that the Bonds so registered have been duly authenticated, registered and delivered hereunder and are entitled to the benefits of this Resolution.
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SECTION 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation at the Principal Office at the Paying Agent, accompanied by delivery of a written instrument of transfer in a form approved by the Paying Agent, duly executed. The City may charge a reasonable sum for each new Bond issued upon any transfer.
Whenever any Bond or Bonds is surrendered for transfer, the City shall execute and the Paying Agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount.
SECTION 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office of the Paying Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The City may charge a reasonable sum for each new Bond issued upon any exchange.
SECTION 2.08. Registration Books. The Paying Agent shall keep or cause to be kept sufficient books for the registration and transfer of the Bonds, which shall at all times be open to inspection by the City upon reasonable notice; and, upon presentation for such purpose, the Paying Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, Bonds as herein before provided.
SECTION 2.09. Book-Entry System. Except as provided below, DTC will be the Owner of all of the Bonds, and the Bonds will be registered in the name of Cede & Co. as nominee for DTC. The Bonds shall be initially executed and delivered in the form of a single fully registered Bond for each maturity date of the Bonds in the full aggregate principal amount of the Bonds maturing on such date. The Paying Agent and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for all purposes of this Resolution, and neither the Paying Agent nor the City shall be affected by any notice to the contrary. The Paying Agent and the City shall not have any responsibility or obligation to any Depository System Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or a Depository System Participant, or any other person which is not shown on the register of the City as being an owner, with respect to the accuracy of any records maintained by DTC or any Depository System Participant or the payment by DTC or any Depository System Participant by DTC or any Depository System Participant of any amount in respect of the principal or interest with respect to the Bonds. The City shall cause to be paid all principal and interest with respect to the Bonds only to DTC, and all such payments shall be valid and effective to fully satisfy and discharge the City’s obligations with respect to the principal and interest with respect to the Bonds to the extent of the sum or sums so paid. Except under the conditions noted below, no person other than DTC shall receive a Bond. Upon delivery by DTC to the City of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the term “Cede & Co.” in this Resolution shall refer to such new nominee of DTC.
If the City determines that it is in the best interest of the beneficial owners that they be able to obtain Bonds and delivers a written certificate to DTC and the City to that effect, DTC -10-
shall notify the Depository System Participants of the availability through DTC of Bonds. In such event, the City shall issue, transfer and exchange Bonds as requested by DTC and any other owners in appropriate amounts. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. Under such circumstances (if there is no successor securities depository), the City shall be obligated to deliver Bonds as described in this Resolution. Whenever DTC requests the City to do so, the City will cooperate with DTC in taking appropriate action after reasonable notice to: (a) make available one or more separate Bonds evidencing the Bonds to any Depository System Participant having Bonds credited to its DTC account; or (b) arrange for another securities depository to maintain custody of certificates evidencing the Bonds.
Notwithstanding any other provision of this Resolution to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal and interest with respect to such Bond and all notices with respect to such Bond shall be made and given, respectively, to DTC as provided as in the representation letter delivered on the date of issuance of the Bonds.
SECTION 2.10. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond becomes mutilated, the City, at the expense of the Owner of said Bond, shall execute, and the Paying Agent shall thereupon authenticate and deliver, a new Bond of like maturity and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Paying Agent of the Bond so mutilated. The Paying Agent shall cancel every mutilated Bond so surrendered to it. If any Bond is lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the City and, if such evidence is satisfactory to the City and the City receives satisfactory indemnity, the City, at the expense of the Owner, shall execute, and the Paying Agent shall thereupon authenticate and deliver, a new Bond of like maturity and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen.
The City may require payment of a sum not exceeding the actual cost of preparing each new Bond issued under this Section and of the expenses which may be incurred by the City and the Paying Agent. Any Bond issued under the provisions of this Section 2.10 in lieu of any Bond alleged to be lost, destroyed or stolen will constitute an original additional contractual obligation of the City whether or not the Bond so alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and such Bond will be equally and proportionately entitled to the benefits of this Resolution with all other Bonds issued under this Resolution.
Notwithstanding any other provision of this Section 2.10, in lieu of delivering a new Bond for which principal has or is about to become due for a Bond which has been mutilated, lost, destroyed or stolen, the Paying Agent may make payment of such Bond in accordance with its terms.
ARTICLE III
SALE OF BONDS
SECTION 3.01. Competitive Sale of Bonds.
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(a) Approval of Official Notice of Sale; Competitive Sale Procedures. The Bonds shall be offered for sale by competitive bid in accordance with the provisions of the Official Notice of Sale in substantially the form set forth in Exhibit C, together with such additions thereto and changes therein as may be approved by a City Representative. The City Council hereby authorizes and directs a City Representative to accept the best responsible bid for the Bonds, to be determined in accordance with the related Official Notice of Sale. A City Representative, on behalf of the City, may exercise his or her own discretion and judgment in awarding the sale of the Bonds, and may, in his or her discretion, reject any and all bids and waive any irregularity or informality in any bid. Sale of the Bonds shall be awarded, or all bids shall be rejected, not later than 24 hours after the expiration of the time prescribed for the receipt of proposals unless such time of award is waived by the successful bidder. (b) Publication of Notice of Intention. The City Council hereby approves and authorizes the publication by Bond Counsel of a notice of the City’s intention to sell the Bonds, in form and substance acceptable to Bond Counsel, in The Bond Buyer once at least fifteen days prior to the date fixed for receipt of bids, in accordance with Government Code Section 53692. (c) Furnishing of Documents. The municipal advisor to the City, A. M. Peché & Associates LLC, is hereby authorized and directed by the City to cause to be furnished to prospective bidders a reasonable number of copies of said Official Notice of Sale and a reasonable number of copies of the Preliminary Official Statement relating to the Bonds.
SECTION 3.02. Negotiated Sale of Bonds. The Bonds are authorized to be sold by negotiated sale to Piper Sandler & Co. if: (a) no bids are received when the Bonds are offered for public sale under Section 3.01; (b) bids are received but such bids are not satisfactory as to price or responsibility of the bidders as determined by a City Representative, as a result of which all bids are rejected; or (c) the City determines to combine the financing of the Improvements with a refunding of all or a portion of the 2015 Bonds and/or 2016 Bonds in the event that debt service savings can be achieved by such refunding; provided that any such refunding shall result in net present value savings of at least 5.00%. In such event, the Bonds are authorized to be sold by negotiation with an underwriter or investment bank which is designated by a City Representative upon consultation with A. M. Peché & Associates LLC, as municipal advisor to the City. The Bonds shall be sold to such underwriter or investment bank under the Bond Purchase Agreement in a form deemed advisable by a City Representative, whose execution shall be conclusive evidence of such Bond Purchase Agreement. A City Representative is hereby authorized to accept a bid from such underwriter or investment bank to purchase the Bonds, and to execute the Bond Purchase Agreement on behalf of the City; provided that the rate of interest on the Bonds shall not exceed 8.00% and the underwriter’s discount shall not exceed 1.00% of the principal amount of the Bonds. If it is determined to sell the Bonds by negotiation, a City Representative shall disclose the identity of the underwriter at the public meeting first occurring after the bond underwriter has been selected, along with the estimated costs associated with the bond issuance and the circumstances that led to the negotiated sale.
SECTION 3.03. Official Statement. The City Council hereby authorizes and directs a City Representative to: (a) review, approve and deem substantially final, within the meaning of -12-
Rule 15c2-12 of the Securities Exchange Act of 1934, a preliminary Official Statement describing the Bonds; (b) execute an appropriate certificate affirming his or her determination that the preliminary Official Statement has been deemed substantial final within the meaning of such Rule; and (c) approve any changes in or additions to a final form of said Official Statement. The City Council hereby authorizes the distribution of the final Official Statement by the Original Purchaser. The final Official Statement shall be executed in the name and on behalf of the City by a City Representative.
SECTION 3.04. Costs of Issuance Custodian Agreement. The City shall pay the costs of issuing the Bonds from the proceeds of the Bonds, or to the extent permitted by law, original issue premium received from the Original Purchaser of the Bonds. The City Council hereby authorizes a City Representative to enter into a Costs of Issuance Custodian Agreement with U.S. Bank Trust Company, National Association in substantially the form attached hereto as Exhibit B. As provided in said agreement, amounts provided for payment of the costs of issuing the Bonds shall be deposited thereunder and the payment of costs shall be requisitioned by a City Representative in accordance with said agreement.
SECTION 3.05. Official Intent. The City intends to undertake the construction, repair and acquisition of the Improvements. The City intends to use the proceeds of its Bonds described in this Resolution to finance the Improvements. The City expects to pay certain capital expenditures (the “Reimbursement Expenditures”) in connection with the Improvements prior to the issuance by it of the indebtedness for the purpose of financing the costs of the Improvements on a long-term basis. The City reasonably expects that the Bonds debt obligations will be issued by it for the purpose of financing the cost of the Improvements on a long-term basis and that certain of the proceeds of such debt obligations will be used to reimburse the City for the Reimbursement Expenditures.
The City Council hereby declares the City’s official intent to use a portion of the proceeds of the proposed indebtedness to reimburse the City for the Reimbursement Expenditures. The foregoing statement is a declaration of official intent that is made under and only for the purpose of establishing compliance with the requirements of Treasury Regulations section 1.150-2 and Section 54A(d)(2)(D) of the Internal Revenue Code of 1986, as amended.
ARTICLE IV
FUNDS AND ACCOUNTS
SECTION 4.01. Application of Proceeds of Sale of Bonds. On the Closing Date, the proceeds of sale of the Bonds shall be paid by the Original Purchaser to the City, and shall be applied on the Closing Date as follows: (a) the City shall deposit in the Costs of Issuance Fund and the Debt Service Fund held by the County, in the respective amounts determined by a City Representative, proceeds of the Bonds, including the premium (if any) received by the City on the sale of the Bonds; and (b) the City shall deposit the remainder of such proceeds in the Project Fund.
SECTION 4.02. Project Fund. The City Council hereby establishes a special fund to be held by the City separate and apart from all other funds of the City, to be known as the Project -13-
Fund. The proceeds from the sale of the Bonds, to the extent required under Section 4.01(b), shall be deposited by the City in the Project Fund, and shall be expended by the City solely for the payment of: (a) Costs of Issuance of the Bonds to the extent not paid as set forth in Section
3.04, and (b) costs of acquisition or improvement of real property for which the Bond proceeds are authorized to be expended under the Bond Authorization. All interest and other gain arising from the investment of amounts deposited to the Project Fund shall be retained in the Project Fund and used for the purposes thereof. Any amounts remaining on deposit in the Project Fund and not needed for the purposes thereof shall be withdrawn from the Project Fund and transferred to the Debt Service Fund, to be applied to pay the principal of and interest and premium (if any) on the Bonds.
SECTION 4.03. Debt Service Fund. The City Council hereby establishes a special fund to be held by the County separate and apart from all other funds held by the County on behalf of the City, to be known as the Debt Service Fund. All taxes levied by the County, as directed by the City herein, for the payment of the principal of and interest and premium (if any) on the Bonds in accordance with Section 5.03 shall be deposited in the Debt Service Fund by the County promptly upon receipt thereof. The Debt Service Fund is hereby pledged to the payment of the principal of and interest and premium (if any) on the Bonds when and as the same become due. The County shall transfer amounts in the Debt Service Fund, to the extent necessary to pay the principal of and interest on the Bonds as the same become due and payable, to the Paying Agent as required to pay the principal of and interest and premium (if any) on the Bonds.
If, after payment in full of the Bonds, any amounts remain on deposit in the Debt Service Fund, the County will transfer such amounts to the City and the City will deposit such amounts in the Project Fund and, if the Project Fund is closed, will transfer such amounts to its street maintenance fund and use such amounts solely for costs of acquisition or improvement of real property for which the Bond proceeds are authorized to be expended under the Bond Authorization.
SECTION 4.04. Investments. The City shall invest all moneys held in any of the funds or accounts established with it hereunder in accordance with the investment policies of the City, as such policies shall exist at the time of investment, and in accordance with Section 53601 of the California Government Code.
ARTICLE V
OTHER COVENANTS OF THE CITY; SECURITY FOR THE BONDS
SECTION 5.01. Punctual Payment. The City shall punctually pay, or cause to be paid by the County, the principal of and interest on the Bonds, in strict conformity with the terms of the Bonds and of this Resolution, and shall faithfully observe and perform all of the conditions, covenants and requirements of this Resolution and of the Bonds. Nothing herein contained prevents the City from making advances of its own moneys howsoever derived to any of the uses or purposes permitted by law.
SECTION 5.02. Extension of Time for Payment. In order to prevent any accumulation of claims for interest after maturity, the City will not, directly or indirectly, extend or consent to -14-
the extension of the time for the payment of any claim for interest on any of the Bonds and will not, directly or indirectly, approve any such arrangement by purchasing or funding said claims for interest or in any other manner.
SECTION 5.03. Security for the Bonds. The Bonds are general obligations of the City and the City has the power, is obligated and hereby covenants to levy ad valorem taxes upon all property within the City subject to taxation by the City, without limitation of rate or amount, for the payment of the Bonds and the interest thereon, in accordance with Section 43632 of the Bond Law. Amounts in the General Fund of the City are not pledged to the payment of the Bonds. However, nothing herein limits the ability of the City to provide for payment of the principal of and interest and premium (if any) on the Bonds from any source of legally available funds of the City. Any amounts so advanced by the City from legally available funds may be reimbursed from ad valorem property taxes subsequently collected under this Section 5.03.
SECTION 5.04. Books and Accounts; Financial Statement. The City will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the City in which complete and correct entries are made of all transactions relating to the Bonds. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Paying Agent and the Owners of not less than 10% in aggregate principal amount of the Bonds then Outstanding, or their representatives authorized in writing.
SECTION 5.05. Protection of Security and Rights of Bond Owners. The City will preserve and protect the security of the Bonds and the rights of the Bond Owners, and will warrant and defend their rights against all claims and demands of all persons. From and after the sale and delivery of any of the Bonds by the City, the City may not contest the authorization, issuance, sale or repayment of the Bonds.
SECTION 5.06. Tax Covenants Relating to the Bonds. The City shall take all actions necessary to assure the exclusion, and refrain from taking actions that negatively affect the exclusion, of interest on the Bonds from the gross income of the Owners of the Bonds under Section 103 of the Tax Code to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the Closing Date. To that end, and without limiting the generality of the foregoing covenant, the City hereby covenants to comply with the provisions of the Tax Certificate executed on the closing date.
SECTION 5.07. Continuing Disclosure. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate, which a City Representative is hereby authorized and directed to execute and deliver on the Closing Date. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate will not be considered a default by the City hereunder or under the Bonds; however, any Participating Underwriter (as such term is defined in the Continuing Disclosure Certificate) or any holder or beneficial owner of the Bonds may, take such actions as may be necessary and appropriate to compel performance, including seeking mandate or specific performance by court order. The City Council hereby authorizes a City Representative to execute a Disclosure Advisor Agreement with A. M. Peché & Associates LLC -15-
in order to provide the services required by such agreement to comply with the Continuing Disclosure Agreement.
SECTION 5.08. Further Assurances. The City will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Resolution, and for the better assuring and confirming unto the Owners of the Bonds of the rights and benefits provided in this Resolution.
ARTICLE VI
THE PAYING AGENT
SECTION 6.01. Appointment of Paying Agent. U.S. Bank Trust Company, National Association is hereby appointed to act as Paying Agent for the Bonds. The Paying Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Resolution, and even during the continuance of an event of default with respect to the Bonds, no implied covenants or obligations shall be read into this Resolution against the Paying Agent.
The Paying Agent shall signify its acceptance of the duties and obligations imposed upon it by this Resolution by executing and delivering to the City a certificate to that effect.
The City may remove the Paying Agent initially appointed, and any successor thereto, and may appoint a successor or successors thereto, but any such successor shall be a bank or trust company doing business and having an office in the State of California, having a combined capital (exclusive of borrowed capital) and surplus of at least $50,000,000, and subject to supervision or examination by federal or state authority. If such bank or trust company publishes a report of condition at least annually, under law or under the requirements of any supervising or examining authority above referred to, then for the purposes of this Section 6.01 the combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
The Paying Agent may at any time resign by giving written notice to the City and the Bond Owners of such resignation. Upon receiving notice of such resignation, the City shall promptly appoint a successor Paying Agent by an instrument in writing. Any resignation or removal of the Paying Agent and appointment of a successor Paying Agent becomes effective upon acceptance of appointment by the successor Paying Agent.
Any bank, national association, federal savings association, or trust company into which the Paying Agent may be merged or converted or with which it may be consolidated or any bank, national association, federal savings association, or trust company resulting from any merger, conversion or consolidation to which it shall be a party or any bank, national association, federal savings association, or trust company to which the Paying Agent may sell or transfer all or substantially all of its corporate trust business, provided such bank, federal savings association, or trust company shall be eligible as described in this Section 6.01 shall be the successor to such Paying Agent, without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding
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SECTION 6.02. Paying Agent May Hold Bonds. The Paying Agent may become the Owner of any of the Bonds in its own or any other capacity with the same rights it would have if it were not Paying Agent.
SECTION 6.03. Liability of Paying Agent. The recitals of facts, covenants and agreements herein and in the Bonds contained shall be taken as statements, covenants and agreements of the City, and the Paying Agent assumes no responsibility for the correctness of the same, nor makes any representations as to the validity or sufficiency of this Resolution or of the Bonds, nor shall the Paying Agent incur any responsibility in respect thereof, other than as set forth in this Resolution. The Paying Agent is not liable in connection with the performance of its duties hereunder, except for its own negligence or willful default.
In the absence of bad faith, the Paying Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Paying Agent and conforming to the requirements of this Resolution.
The Paying Agent has no liability for any error of judgment made in good faith by a responsible officer of its corporate trust department in the absence of the negligence of the Paying Agent.
No provision of this Resolution requires the Paying Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it has reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.
The Paying Agent may execute any of the powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Paying Agent is not responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.
SECTION 6.04. Notice to Paying Agent. The Paying Agent may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The Paying Agent may consult with counsel, who may be of counsel to the City, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.
Whenever in the administration of its duties under this Resolution the Paying Agent deems it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad faith on the part of the Paying Agent, be deemed to be conclusively proved and established by a certificate of the City, and such certificate will be full warrant to the Paying Agent for any action taken or suffered under the provisions of this Resolution upon the faith thereof, but in its discretion the Paying Agent may, -17-
in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.
SECTION 6.05. Compensation. The County will pay to the Paying Agent from time to time reasonable compensation for all services rendered under this Resolution, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of their attorneys, agents and employees, incurred in and about the performance of their powers and duties under this Resolution. Such compensation shall be paid solely from ad valorem taxes lawfully levied.
ARTICLE VII
REMEDIES OF BOND OWNERS
SECTION 7.01. Remedies of Bond Owners. Upon the happening and continuation of any default by the City hereunder or under the Bonds, any Bond Owner has the right, for the equal benefit and protection of all Bond Owners similarly situated:
(a) by mandamus, suit, action or proceeding, to compel the City and its City Council members, officers, agents or employees to perform each and every term, provision and covenant contained in this Resolution and in the Bonds, and to require the carrying out of any or all such covenants and agreements of the City and the fulfillment of all duties imposed upon it; (b) by suit, action or proceeding in equity, to enjoin any acts or things which are unlawful, or the violation of any of the Bond Owners’ rights; or (c) by suit, action or proceeding in any court of competent jurisdiction, to require the City and its members and employees to account as if it and they were the trustees of an express trust.
SECTION 7.02. Remedies Not Exclusive. No remedy herein conferred upon the Owners of Bonds is exclusive of any other remedy. Each remedy is cumulative and shall be in addition to every other remedy given hereunder or thereafter conferred on the Bond Owners.
ARTICLE VIII
AMENDMENT OF THIS RESOLUTION
SECTION 8.01. Amendments Effective Without Consent of the Owners. For any one or more of the following purposes and at any time or from time to time, the City Council may by Supplemental Resolution amend this Resolution in whole or in part, without the consent of any of the Bond Owners:
(a) to add to the covenants and agreements of the City in this Resolution other covenants and agreements to be observed by the City which are not contrary to or inconsistent with this Resolution as theretofore in effect;
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(b) to confirm, as further assurance, any pledge under, and to subject to any lien or pledge created or to be created by, this Resolution, of any moneys, securities or funds, or to establish any additional funds or accounts to be held under this Resolution; (c) to cure any ambiguity, supply any omission, or cure or correct any defect or inconsistent provision in this Resolution, which in any event does not materially adversely affect the interests of the Bond Owners, in the opinion of Bond Counsel filed with the City; or (d) to make such additions, deletions or modifications as may be necessary to assure compliance with the applicable provisions of the Tax Code relating to the rebate of excess investment earnings to the United States or otherwise as may be necessary to assure that the interest on the Bonds remains excludable from gross income of the Owners thereof for federal income tax purposes, in the opinion of Bond Counsel filed with the City.
SECTION 8.02. Amendments Effective With Consent to the Owners. Any modification or amendment of this Resolution and of the rights and obligations of the City and of the Owners of the Bonds, in any particular, may be made by a Supplemental Resolution, with the written consent of the Owners of a majority in aggregate principal amount of the Bonds Outstanding at the time such consent is given. Without the consent of the Owners of all affected Bonds, no such modification or amendment may: (a) change the maturity of the principal of any Bonds or any interest payable thereon; (b) reduce the principal amount of the Bonds or the rate of interest thereon; (c) reduce the percentage of Bonds the consent of the Owners of which is required to effect any such modification or amendment; (d) change any of the provisions in Section 7.01 relating to a default by the City hereunder or under the Bonds; or (e) reduce the amount of moneys pledged for the repayment of the Bonds. Without the consent of the Paying Agent, no such modification or amendment may change or modify any of the rights or obligations of the Paying Agent.
ARTICLE IX
MISCELLANEOUS
SECTION 9.01. Benefits of Resolution Limited to Parties. Nothing in this Resolution, expressed or implied, is intended to give to any person other than the City, the Paying Agent and the Owners of the Bonds, any right, remedy, claim under or by reason of this Resolution. Any covenants, stipulations, promises or agreements in this Resolution contained by and on behalf of the City shall be for the sole and exclusive benefit of the Owners of the Bonds.
SECTION 9.02. Defeasance.
(a) Discharge of Resolution. Bonds may be paid by the City, in whole or in part, in any of the following ways. provided that the City also pays or causes to be paid any other sums payable hereunder by the City:
(i) by paying or causing to be paid the principal of and interest on such Bonds, as and when the same become due and payable;
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(ii) by irrevocably depositing, in trust, at or before maturity, money or Government Obligations in the necessary amount to pay such Bonds as provided in Section
9.02(c); or
(iii) by delivering such Bonds to the Paying Agent for cancellation by it.
If the City pays all Outstanding Bonds and also pays or causes to be paid all other sums payable hereunder by the City, then and in that case, at the election of the City (evidenced by a certificate of a City Representative filed with the Paying Agent signifying the intention of the City to discharge all such indebtedness and this Resolution), and notwithstanding that any Bonds have not been surrendered for payment, this Resolution, all taxes and other assets pledged under this Resolution and all covenants, agreements and other obligations of the City under this Resolution shall cease, terminate, become void and be completely discharged and satisfied, except only as provided in Section 9.02(b). In such event, upon request of the City, the Paying Agent shall cause an accounting for such period or periods as may be requested by the City to be prepared and filed with the City and shall execute and deliver to the City all such instruments as may be necessary to evidence such discharge and satisfaction, and the Paying Agent shall pay over, transfer, assign or deliver to the City all moneys or securities or other property held by it under this Resolution which are not required for the payment of Bonds not theretofore surrendered for such payment.
(b) Discharge of Liability on Bonds. Upon the deposit, in trust, at or before maturity, of money or securities in the necessary amount to pay any Outstanding Bond or Bonds as provided in Section 9.02(c), then all liability of the City in respect of such Bond will cease and be completely discharged, except only that thereafter the Owner thereof is entitled only to payment of the principal of and interest on such Bond by the City, and the City remains liable for such payment, but only out of such money or securities deposited with the Paying Agent as aforesaid for such payment, provided further, however, that the provisions of Section 9.02(d) apply in all events.
The City may at any time surrender to the Paying Agent for cancellation by it any Bonds previously issued and delivered, which the City acquires in any manner whatsoever, and such Bonds, upon such surrender and cancellation, will be deemed paid and retired. (c) Deposit of Money or Securities with Paying Agent. Whenever in this Resolution it is provided or permitted that there be deposited with or held in trust by the Paying Agent money or securities in the necessary amount to pay any Bonds, the money or securities so to be deposited or held may include money or securities held by the Paying Agent in the funds and accounts established under this Resolution and must be:
(i) lawful money of the United States of America in an amount equal to the principal amount of such Bonds and all unpaid interest thereon to maturity; or (ii) Government Obligations the principal of and interest on which when due, in the opinion of a certified public accountant delivered to the City, will provide money sufficient to pay the principal of and all unpaid interest to maturity on the Bonds to be paid, as such principal and interest become due.
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(d) Payment of Bonds After Discharge of Resolution. Notwithstanding any provisions of this Resolution, any moneys held by the Paying Agent in trust for the payment of the principal of, or interest on, any Bonds and remaining unclaimed for two years after the principal of all of the Bonds has become due and payable, if such moneys were so held at such date, or two years after the date of deposit of such moneys if deposited after the date when all of the Bonds became due and payable, shall, upon request of the City, be repaid to the City free from the trusts created by this Resolution, and all liability of the Paying Agent with respect to such moneys shall thereupon cease. Before the repayment of such moneys to the City as aforesaid, the Paying Agent may (at the cost of the City) first mail to the Owners of all Bonds which have not been paid at the addresses shown on the Registration Books a notice in such form as may be deemed appropriate by the Paying Agent, with respect to the Bonds so payable and not presented and with respect to the provisions relating to the repayment to the City of the moneys held for the payment thereof.
SECTION 9.03. Insurance. In the event that the City purchases bond insurance for the Bonds, and to the extent that the Bond Insurer makes payment of the principal of or interest on the Bonds, it shall become the Owner of such Bonds with the right to payment of principal or interest, and shall be fully subrogated to all of the Owners’ rights, including the Owners’ rights to payment thereof. To evidence such subrogation: (i) in the case of subrogation as to claims that were past due interest components, the Paying Agent shall note the Bond Insurer’s rights as subrogee on the registration books for the Bonds maintained by the Paying Agent upon receipt of a copy of the cancelled check issued by the Bond Insurer for the payment of such interest to the Owners of the Bonds; and (ii) in the case of subrogation as to claims for past due principal, the Paying Agent shall note the Bond Insurer as subrogee on the registration books for the Bonds maintained by the Paying Agent upon surrender of the Bonds by the Owners thereof to the Bond Insurer or the insurance trustee for the Bond Insurer.
SECTION 9.04. Execution of Documents and Proof of Ownership by Bond Owners.
Any request, declaration or other instrument which this Resolution may require or permit to be executed by Bond Owners may be in one or more instruments of similar tenor, and shall be executed by Bond Owners in person or by their attorneys appointed in writing.
Except as otherwise herein expressly provided, the fact and date of the execution by any Bond Owner or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer.
Except as otherwise herein expressly provided, the ownership of registered Bonds and the amount, maturity, number and date of holding the same are proved by the Registration Books.
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Any request, declaration or other instrument or writing of the Owner of any Bond binds all future Owners of such Bond in respect of anything done or suffered to be done by the City or the Paying Agent in good faith and in accordance therewith.
SECTION 9.05. Waiver of Personal Liability. No City Council member, officer, agent or employee of the City has any individual or personal liability for the payment of the principal of or interest on the Bonds. Nothing herein contained relieves any City Council member, officer, agent or employee from the performance of any official duty provided by law.
SECTION 9.06. Destruction of Canceled Bonds. Whenever in this Resolution provision is made for the surrender to the City of any Bonds which have been paid or canceled under the provisions of this Resolution, a certificate of destruction duly executed by the Paying Agent constitutes the equivalent of the surrender of such canceled Bonds and the City is entitled to rely upon any statement of fact contained in any certificate with respect to the destruction of any such Bonds therein referred to.
SECTION 9.07. Partial Invalidity. If any section, paragraph, sentence, clause or phrase of this Resolution is for any reason held illegal or unenforceable, such holding will not affect the validity of the remaining portions of this Resolution. The City hereby declares that it would have adopted this Resolution and each and every other section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant hereto irrespective of the fact that any one or more sections, paragraphs, sentences, clauses, or phrases of this Resolution may be held illegal, invalid or unenforceable.
SECTION 9.08. Nonliability of County. Notwithstanding anything to the contrary contained herein, in the Bonds or in any other document mentioned herein, neither the County, nor its officials, officers, employees or agents shall have any liability hereunder or by reason hereof or in connection with the transactions contemplated hereby, the Bonds are not a debt of the County or a pledge of the County’s full faith and credit and the Bonds and any liability in connection therewith shall be paid solely from ad valorem taxes lawfully levied to pay the principal of or interest on the Bonds.
SECTION 9.09. Other Actions. Members of the City Council and City officials and staff, including each City Representative, are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all certificates, requisitions, agreements, notices, consents, warrants and other documents which they or any of them might deem necessary or appropriate in order to consummate the lawful issuance, sale and delivery of the Bonds, and otherwise carry out, give effect to and comply with the terms and intent of this Resolution. Such actions heretofore taken by such officers, officials and staff are hereby ratified, confirmed and approved. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. -22-
SECTION 9.10. Resolution to County Treasurer-Tax Collector. The City Clerk is hereby directed to provide a certified copy of this Resolution to the Treasurer-Tax Collector of the County immediately following its adoption.
SECTION 9.11. Further Actions Authorized. It is hereby covenanted that the City, and its appropriate officials, have duly taken all actions necessary to be taken by them, and will take any additional actions necessary to be taken by them, for carrying out the provisions of this Resolution.
SECTION 9.12. Recitals. All the recitals in this Resolution above are true and correct and this City Council so finds, determines and represents.
SECTION 9.13. Effective Date. This Resolution shall take effect immediately upon its passage.
The foregoing Resolution 26-[__] was adopted by the City Council on the 26th day of May, 2026, by the following vote:
AYES: MEMBERS:
NOES: MEMBERS:
ABSENT: MEMBERS:
ABSTAIN: MEMBERS:
MAYOR of the City of Grover Beach
ATTEST:
CITY CLERK of the City of Grover Beach
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EXHIBIT A
FORM OF BOND
$_______________
CITY OF GROVER BEACH
(SAN LUIS OBISPO COUNTY, CALIFORNIA)
2026 GENERAL OBLIGATION BONDS
(STREET IMPROVEMENTS)
REGISTERED BOND NO. _____
INTEREST RATE MATURITY DATE DATED DATE CUSIP
_____% per annum September 1, 20__ June __, 2026 399682 ___ REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: _____ DOLLARS AND NO CENTS
The CITY OF GROVER BEACH, a general law city and municipal corporation duly organized and existing under the Constitution and laws of the State of California (the “City”), for value received, hereby promises to pay to the Registered Owner named above, or registered assigns, the Principal Amount set forth above on the Maturity Date set forth above, together with interest thereon at the Interest Rate set forth above, calculated on the basis of a 360-day year comprised of twelve 30-day months, until the Principal Amount hereof is paid or provided for, such interest to be paid on March 1 and September 1 of each year, commencing March 1, 2027 (each, an “Interest Payment Date”). This Bond will bear interest from the Interest Payment Date next preceding the date of authentication hereof, unless: (a) it is authenticated as of a business day following the 15th day of the month immediately preceding any Interest Payment Date and on or before such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date; or (b) it is authenticated on or before February 15, 2027, in which event it shall bear interest from the Dated Date set forth above.
Principal, interest and redemption premium (if any) are payable in lawful money of the United States of America to the person in whose name this Bond is registered (the “Registered Owner”) on the Bond registration books maintained by the Paying Agent, initially U.S. Bank Trust Company, National Association, Los Angeles, California. Principal hereof and any redemption premium hereon are payable upon presentation and surrender of this Bond at the principal corporate trust office of the Paying Agent. Interest hereon is payable by check mailed by the Paying Agent on each Interest Payment Date to the Registered Owner of this Bond by first-class mail at the address appearing on the Bond registration books at the close of business on the 15th day of the calendar month next preceding such Interest Payment Date (the “Record Date”); provided, however, that at the written request of the registered owner of Bonds in an aggregate principal amount of at least $1,000,000, which written request is on file with the Paying Agent prior to any Record Date, interest on such Bonds shall be paid on each succeeding -A-2-
Interest Payment Date by wire transfer in immediately available funds to such account of a financial institution within the United States of America as shall be specified in such written request.
This Bond is one of a series of Bonds (collectively, the “Bonds”) issued for the purpose of raising money to repair and resurface deteriorating residential and major streets, and to pay all necessary legal, financial, engineering and contingent costs in connection therewith. The Bonds have been issued under authority of and under the laws of the State of California, and the requisite two-thirds vote of the electors of the City cast at a special bond election held on November 4, 2014, upon the question of issuing Bonds in the aggregate principal amount of up to $48,000,000, and under a resolution of the City Council of the City adopted on May 26, 2026 (the “Bond Resolution”). The Bonds are payable as to both principal and interest from the proceeds of the levy of ad valorem taxes on all property subject to such taxes in the City, which taxes are unlimited as to rate or amount.
The principal of and interest and redemption premium, if any, on this Bond do not constitute a debt of the County, the State of California, or any of its political subdivisions other than the City, or any of the officers, agents and employees thereof, and neither the County, the State of California, any of its political subdivisions other than the City, nor any of the officers, agents and employees thereof shall be liable hereon. In no event shall the principal of and interest and redemption premium, if any, on this Bond be payable out of any funds or properties of the City other than ad valorem taxes levied upon all taxable property in the City.
The Bonds are issuable only as fully registered Bonds in the denominations of $5,000 or any integral multiple thereof. This Bond is exchangeable and transferable for Bonds of other authorized denominations at the principal corporate trust office of the Paying Agent, by the Registered Owner or by a person legally empowered to do so, upon presentation and surrender hereof to the Paying Agent, together with a request for exchange or an assignment signed by the Registered Owner or by a person legally empowered to do so, in a form satisfactory to the Paying Agent, all subject to the terms, limitations and conditions provided in the Bond Resolution. Any tax or governmental charges shall be paid by the transferor. The City and the Paying Agent may deem and treat the Registered Owner as the absolute owner of this Bond for the purpose of receiving payment of or on account of principal or interest and for all other purposes, and neither the City nor the Paying Agent shall be affected by any notice to the contrary.
The Bonds maturing on or before September 1, 20__ are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after September 1, 20__ are subject to redemption prior to maturity, at the option of the City, in whole or in part among maturities on such basis as designated by the City and by lot within a maturity, from any available source of funds, on _____ 1, 20__ and on any date thereafter, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed together with accrued interest thereon to the date fixed for redemption, without premium. [If applicable:] The Bonds maturing on September 1, 20_ (the “Term Bonds”) are also subject to mandatory sinking fund redemption on September 1 in the years, and in the amounts, as set forth in the following table, at a redemption price equal to 100% of the principal amount -A-3-
thereof to be redeemed (without premium), together with interest accrued thereon to the date fixed for redemption; provided, however, that if some but not all of the Term Bonds have been redeemed under the preceding paragraph, the aggregate principal amount of Term Bonds to be redeemed under this paragraph shall be reduced on a pro rata basis in integral multiples of $5,000, as shall be designated in written notice filed by the City with the Paying Agent.
Sinking Fund
Redemption Date
(September 1)
Principal
Amount To Be
Redeemed
The Paying Agent shall give notice of the redemption of the Bonds at the expense of the City. Such notice shall specify: (a) that the Bonds or a designated portion thereof are to be redeemed; (b) the numbers and CUSIP numbers of the Bonds to be redeemed; (c) the date of notice and the date of redemption; (d) the place or places where the redemption will be made; and (e) descriptive information regarding the Bonds, including the dated date, interest rate and stated maturity date. Such notice shall further state that on the specified date there shall become due and payable upon each Bond to be redeemed, the portion of the principal amount of such Bond to be redeemed, together with interest accrued to said date, the redemption premium, if any, and that from and after such date interest with respect thereto shall cease to accrue and be payable.
Notice of any redemption of Bonds shall be mailed by first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption, to the respective Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books maintained by the Paying Agent; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice shall not affect the validity of the proceedings for the redemption of such Bonds or the cessation of accrual of interest thereon from and after the redemption date.
The City is entitled to rescind any notice of optional redemption of the Bonds by written notice to the Paying Agent on or prior to the date fixed for redemption, and the Paying Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption.
The City and the Paying Agent have no liability to the Owners or any other party related to or arising from such rescission.
Neither the City nor the Paying Agent will be required: (a) to issue or transfer any Bond during a period beginning with the opening of business on the 15th calendar day next preceding either any Interest Payment Date or any date of selection of any Bond to be redeemed and ending with the close of business on the Interest Payment Date or a day on which the applicable -A-4-
notice of redemption is given; or (b) to transfer any Bond which has been selected or called for redemption in whole or in part.
Reference is made to the Bond Resolution for a more complete description of the provisions, among others, with respect to the nature and extent of the security for the Bonds, the rights, duties and obligations of the City, the Paying Agent and the Registered Owners, and the terms and conditions upon which the Bonds are issued and secured. The owner of this Bond assents, by acceptance hereof, to all of the provisions of the Bond Resolution.
It is certified, recited and declared that all acts and conditions required by the Constitution and laws of the State of California to exist, to be performed or to have been met precedent to and in the issuing of the Bonds in order to make them legal, valid and binding general obligations of the City, have been performed and have been met in regular and due form as required by law; that payment in full for the Bonds has been received; that no statutory or constitutional limitation on indebtedness or taxation has been exceeded in issuing the Bonds; and that due provision has been made for levying and collecting ad valorem property taxes on all of the taxable property within the City in an amount sufficient to pay principal and interest when due, and for levying and collecting such taxes the full faith and credit of the City are hereby pledged.
This Bond shall not be valid or obligatory for any purpose and shall not be entitled to any security or benefit under the Bond Resolution until the Certificate of Authentication below has been manually signed by the Paying Agent.
Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the City or the Paying Agent for registration of transfer, exchange, or payment, and any Bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.
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IN WITNESS WHEREOF, the City of Grover Beach has caused this Bond to be executed by the facsimile signature of its Mayor and attested by the facsimile signature of its City Clerk, and has caused the seal of the City to be reproduced hereon, all as of the date stated above.
CITY OF GROVER BEACH
By:_________________________________
Mayor
Attest:
City Clerk
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CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the Bond Resolution referred to herein.
Date of Authentication: June , 2026
U.S. Bank Trust Company, National Association, as Paying Agent By:
Authorized Signatory
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FORM OF ASSIGNMENT
For value received, the undersigned do(es) hereby sell, assign and transfer unto (Name, Address and Tax Identification or Social Security Number of Assignee) the within Bond and do(es) hereby irrevocably constitute and appoint ____________________, attorney, to transfer the same on the registration books of the Bond Registrar, with full power of substitution in the premises.
Dated:
Signature Guaranteed:
Note: Signature(s) must be guaranteed by an
eligible guarantor institution.
Note: The signature(s) on this Assignment
must correspond with the name(s) as written
on the face of the within Bond in every
particular without alteration or enlargement or
any change whatsoever.
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EXHIBIT B
FORM OF COST OF ISSUANCE CUSTODIAN AGREEMENT
$___________
CITY OF GROVER BEACH
(COUNTY OF SAN LUIS OBISPO, CALIFORNIA)
2026 GENERAL OBLIGATION BONDS
(STREET IMPROVEMENTS)
COSTS OF ISSUANCE CUSTODIAN AGREEMENT
This Costs of Issuance Custodian Agreement (this “Agreement”) dated June __, 2026 has been entered into by and between the City of Grover Beach (the “Issuer”) and U.S. Bank Trust Company, National Association (the “Custodian”). The Issuer has appointed the Custodian to act as custodian for its Costs of Issuance Fund for the above-captioned issue of bonds (the “Bonds”). This Agreement sets out the terms and conditions of said appointment.
The Issuer and the Custodian agree as follows:
1. The Issuer shall deposit $______ with Custodian on June __, 2026 and Custodian shall deposit the funds in a custody account (the “Costs of Issuance Fund”) established with the Custodian in the name of the Bonds.
2. The Custodian will pay costs of issuance of the Bonds as directed by the Issuer from time to time via a written order of the Issuer. The Custodian shall not be responsible or liable in any respect on account of the identity, authority or rights of the persons executing or delivering or purporting to execute or deliver any such written order on behalf of Issuer or responsible for whether or not any payment so directed to be paid is an authorized cost of issuance. All payments shall be made by check or wire transfer in accordance with the payment instructions set forth in the direction from the Issuer or in invoices submitted in accordance therewith and the Custodian may rely on such payment instructions though given by the Issuer with no duty to investigate or inquire as to the authenticity of the invoice or the payment instructions contained therein.
3. Funds held hereunder shall be the property of the Issuer, subject only to the claims for payment of authorized Costs of Issuance of the Bonds as provided in paragraph 2 hereof. Upon the Issuer’s execution of the Custodian’s mutual fund disclosure, the Custodian shall hold and invest the funds in Blackrock T-Fund Cash Management shares and the Issuer acknowledges that the Custodian may receive compensation from such mutual fund or its distributor. In the absence of an executed mutual fund disclosure, the Custodian shall hold all funds uninvested. Any balances remaining in the Costs of Issuance Fund (including any earnings) on the earlier of December 31, 2026 or as set forth in Section 4 below, will be disbursed to the Issuer.
4. The Custodian shall furnish the Issuer periodic cash transaction statements which include detail for all investment transactions effected by the Custodian. Upon the Issuer’s election, such statements will be delivered via the Custodian’s online service and upon electing -B-2-
such service, paper statements will be provided only upon request. The statements described will serve as the sole written notification to Issuer of any securities transaction effected by Custodian unless the Issuer request that Custodian provide written notification of such transactions pursuant to 12 CFR 12.4(a) or 12 CFR 12.4(b) at no additional cost to Customer.
5. This Agreement will terminate on December 31, 2026 or earlier, when the Issuer shall direct the Custodian in writing that the Issuer has satisfied its obligation to pay all costs due relating to the Bonds.
6. The duties and responsibilities of the Custodian shall be limited to those expressly set forth in this Agreement. In no event shall the Custodian be liable for any special, indirect or consequential damages. The Custodian will not be liable for any action taken or neglected to be taken by it in good faith in any exercise of reasonable care and believed by it to be within the discretion of power conferred upon it by this Agreement. The Custodian shall receive compensation for its services as agreed between the Custodian and the Issuer. The Issuer agrees to indemnify and hold the Custodian harmless from all loss, cost, damages, expenses, liabilities, judgments and attorneys’ fees (including without limitation, allocated costs of in-house counsel) suffered or incurred by the Custodian arising out of or in connection with this Agreement, except that this indemnity obligation shall not apply in the event of the gross negligence or willful misconduct of the Custodian. This indemnity obligation shall survive termination of this Agreement.
Executed as of the date first above written.
CITY OF GROVER BEACH
By:_______________________________
City Manager
U.S. BANK TRUST COMPANY, NATIONAL
ASSOCIATION, as Custodian
By: _______________________________
Authorized Representative
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EXHIBIT C
FORM OF OFFICIAL NOTICE OF SALE
OFFICIAL NOTICE OF SALE
$5,000,000*
CITY OF GROVER BEACH
(County of San Luis Obispo, California)
2026 GENERAL OBLIGATION BONDS
(STREET IMPROVEMENTS)
(BANK QUALIFIED)
NOTICE IS HEREBY GIVEN by the City of Grover Beach (the "City"), that bids will be received by a representative of the City for the purchase of $5,000,000* principal amount of bonds of the City designated the "City of Grover Beach 2026 General Obligation Bonds (Street Improvements)" (the "Bonds"). Bids will be received in electronic form through the Ipreo LLC’s BiDCOMP™/PARITY® System (“Parity”) on:
Tuesday, June 16, 2026
at 9:00 a.m. Pacific Time. The City reserves the right to postpone or change the sale date up to 5:00 p.m. Pacific Time on the business day preceding the date for receiving bids by publishing notice thereof on the Parity website. Notice of the new date and time for receipt of bids shall be given through Parity as soon as practicable following a postponement and no later than 1:00 p.m. Pacific Time on the business day preceding the new date for receiving bids.
See "TERMS OF SALE – Right to Cancel, Postpone, or Reschedule Sale.” The City reserves the right to modify or amend this Official Notice of Sale in any respect, including, without limitation, increasing or decreasing the principal amount of any serial maturity or mandatory sinking fund payment for the Bonds and adding or deleting serial or term maturity and mandatory sinking fund payment dates, along with corresponding principal amounts with respect thereto; provided, that any such modification or amendment will be communicated to potential bidders through Parity not later than 5:00 P.M. Pacific Time on the business day preceding the date for receiving bids. Failure of any potential bidder to receive notice of any modification or amendment will not affect the sufficiency of any such notice or the legality of the sale. Bidders are required to bid upon the Bonds as so modified or amended. See "CLOSING CONDITIONS - Right to Modify or Amend." If the summary of the terms of sale of the Bonds posted on Parity conflicts with this Official Notice of Sale in any respect, the terms of this Official Notice of Sale shall control, unless a notice of an amendment is given as described herein.
The Bonds will be issued under the provisions of a Resolution adopted by the City Council of the City on May 26, 2026 (the "Bond Resolution") and under the laws of the State of California. Bidders are referred to the Bond Resolution and the City’s Preliminary Official Statement for the Bonds dated June _, 2026 (the “Preliminary Official Statement”), for additional information regarding the City, the Bonds, the security for the Bonds and other matters. * Preliminary, subject to change.
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Capitalized terms used and not defined in this Official Notice of Sale shall have the meanings ascribed to them in the Preliminary Official Statement. Copies of the Bond Resolution and the Preliminary Official Statement will be furnished to the bidder upon request.
Important Note: The winning bidder will be required to pay, from underwriter's gross spread, certain costs of issuance of the Bonds. See "TERMS OF SALE - Payment of Issuance Costs" herein.
DESCRIPTION OF THE BONDS
THE AUTHORITY FOR ISSUANCE, PURPOSES, PAYMENT OF PRINCIPAL AND
INTEREST, REDEMPTION, DEFEASANCE, SOURCES AND USES OF FUNDS, SECURITY AND
SOURCES OF PAYMENT, FORM OF LEGAL OPINION OF BOND COUNSEL AND OTHER
INFORMATION REGARDING THE BONDS ARE PRESENTED IN THE PRELIMINARY OFFICIAL
STATEMENT, WHICH EACH BIDDER IS DEEMED TO HAVE OBTAINED AND REVIEWED PRIOR TO BIDDING FOR THE BONDS. THIS OFFICIAL NOTICE OF SALE GOVERNS ONLY THE TERMS OF SALE, BIDDING, AWARD AND CLOSING PROCEDURES FOR THE BONDS. THE
DESCRIPTION OF THE BONDS CONTAINED IN THIS OFFICIAL NOTICE OF SALE IS
QUALIFIED IN ALL RESPECTS BY THE DESCRIPTION OF THE BONDS CONTAINED IN THE PRELIMINARY OFFICIAL STATEMENT.
ISSUE; BOOK-ENTRY FORM: The Bonds will be issued in the aggregate principal amount of $5,000,000* in the form of fully registered Bonds without coupons. The Bonds will be dated as of as of their original delivery, and will be issued in minimum denominations of $5,000. The Bonds will be issued in a book entry only system with no physical distribution of the Bonds made to the public. The Depository Trust Company, New York, New York ("DTC"), will act as depository for the Bonds which will be immobilized in its custody. The Bonds will be registered in the name of Cede & Co., as nominee for DTC, on behalf of the participants in the DTC system and the subsequent beneficial owners of the Bonds. As of the date of award of the Bonds, the purchaser of the Bonds must either participate in DTC or must clear through or maintain a custodial relationship with an entity that participates in DTC.
MATURITIES: The Bonds shall be serial and/or term Bonds and principal shall be payable on, or the Bonds shall be subject to mandatory sinking fund redemption on, September 1 in each of the years, and in the amounts, as set forth in the following table. The final principal amount of the Bonds, and the final amount of each maturity of the Bonds, is subject to increase or reduction as described below under the heading "Adjustment of Principal Maturities". Each bidder must specify in its bid whether, for any particular year, the Bonds will mature or, alternately, be subject to mandatory sinking fund redemption.
Bidders for the Bonds must provide bids for all of the maturities listed below. * Preliminary, subject to change.
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Serial Bonds Or Term Bonds (Bidder’s Option)
Maturity Date
(September 1)
Principal
Amount*
Maturity Date
(September 1)
Principal
Amount*
2048 $1,160,000 2050 $1,280,000
2049 1,220,000 2051 1,340,000
* Preliminary, subject to change.
PAYMENT PROVISIONS: Interest on the Bonds will be payable on each March 1 and September 1, commencing March 1, 2027 (the "Interest Payment Dates"), to the registered owners by check or draft of U.S. Bank National Association, as paying agent (the "Paying Agent") or, in the case of the owner of Bonds in an aggregate principal amount of at least $1,000,000, at the written request of such owner by wire transfer. Principal of and premium (if any) on any Bond will be paid upon presentation and surrender thereof at the office of the Paying Agent. Principal, interest and premium (if any) on the Bonds are payable in lawful money of the United States of America. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months from the dated date of the Bonds.
DESIGNATION OF INTEREST RATES: Each bidder must specify the rate or rates of interest which the Bonds will bear. The maximum rate bid on any Bonds may not exceed 8.00% per annum. Bidders may specify any number of separate rates, and the same rate or rates may be repeated as often as desired, provided:
• each interest rate specified must be in a multiple of 1/20% or 1/8%; • no Bond may bear more than one rate of interest;
• interest on each Bond will be computed from the date of original delivery to its stated maturity at the interest rate specified in the proposal, payable on the Interest Payment Dates as set forth above; and
• all Bonds maturing at any one time will bear the same rate of interest. -C-4-
ADJUSTMENT OF PRINCIPAL PAYMENTS. The principal amounts set forth in this Official Notice of Sale reflect certain estimates of the City with respect to the likely interest rates of the winning bid and the premium contained in the winning bid. In order to achieve the financial goals of the City, the City may need to adjust the schedule of principal maturities for the Bonds based on the bids that are received. The City reserves the right to change the principal payment schedule set forth above after the determination of the successful bidder, by adjusting one or more of the principal payments of the Bonds, in increments of $5,000, as determined in the sole discretion of the City.
Notice of such increase or decrease shall be given to the winning bidder as soon as practicable following the notification of award, as described below. The City will attempt to maintain total underwriter compensation when adjusting maturities. Any such adjustment will not change the average per Bond dollar amount of the underwriter's discount. No such adjustment will have the effect of altering the basis upon which the best bid is determined. In the event of any such adjustment, no rebidding or recalculation of the bids submitted will be required or permitted and no successful bid may be withdrawn. The successful bidder will not be permitted to change the interest rates in its bid.
See also CLOSING CONDITIONS - Right to Modify or Amend," regarding the City's right to modify or amend this Official Notice of Sale in any respect including, without limitation, increasing or decreasing the principal amount of any serial maturity or mandatory sinking fund payment for the Bonds and adding or deleting serial or term maturity and mandatory sinking fund payment dates, along with corresponding principal amounts with respect thereto.
OPTIONAL REDEMPTION: The Bonds maturing on or before September 1, 2036 are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after September 1, 2037 are subject to redemption prior to maturity, at the option of the City, in whole or in part among maturities on such basis as designated by the City and by lot within a maturity, from any available source of funds, on September 1, 2036, and on any date thereafter, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed together with accrued interest thereon to the date fixed for redemption, without premium. See the Preliminary Official Statement - "THE BONDS – Redemption - Optional Redemption." SINKING FUND REDEMPTION: Any bidder may, at its option, specify that one or more maturities of the Bonds will consist of term Bonds which are subject to mandatory sinking fund redemption in consecutive years immediately preceding the maturity thereof, as designated in the bid of such bidder. If the bid of the winning bidder specifies that any maturity of Bonds will be term Bonds, such term Bonds will be subject to mandatory sinking fund redemption on September 1 in each year so designated in the bid, in the respective amounts for such years as set forth above under the heading "MATURITIES", at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest to the redemption date, without premium. No term Bonds may be redeemed from mandatory sinking fund payments until all term Bonds maturing on preceding term maturity dates, if any, have been retired. See the Preliminary Official Statement - "THE BONDS – Redemption - Mandatory Sinking Fund Redemption."
SECURITY: The Bonds are general obligations of the City, and the City will direct the appropriate officials of the County of San Luis Obispo to levy ad valorem taxes for the payment -C-5-
of the Bonds and the interest thereon without limitation as to rate or amount for the payment of the Bonds and the interest thereon.
PURPOSE: The proceeds of the Bonds will be applied by the City for the purpose of financing the repair and resurfacing of deteriorating residential and major streets in accordance with the ballot proposition under which the issuance of the Bonds has been authorized.
RATING: S&P Global Ratings, a Standard & Poor’s Financial Services LLC business, have assigned the rating of “__” to the Bonds. The cost of obtaining such rating will be borne entirely by the City and not by the successful bidder.
BANK QUALIFIED: The City has designed the Bonds as “qualified tax-exempt obligations,” thereby allowing certain financial institutions that are holders of such qualified taxexempt obligations to deduct a portion of such institution’s interest expense allocable to such qualified tax-exempt obligations, all as determined in accordance with Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
TAX-EXEMPT STATUS: In the opinion of Kutak Rock LLP, Bond Counsel to the City, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax. Bidders are referred to the Preliminary Official Statement for a description of the proposed opinion of Bond Counsel. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. If prior to the delivery of the Bonds either (a) the interest on other obligations of the same type and character shall be declared to be taxable (either at the time of such declaration or at any future date) under any federal income tax laws, either by the terms of such laws or by ruling of a federal income tax authority or official which is followed by the Internal Revenue Service, or by decision of any federal court, or (b) any federal income tax law is adopted which will have a substantial adverse effect upon owners of the Bonds as such, the winning bidder for the Bonds may, at its option, prior to the tender of the Bonds, be relieved of its obligation under the contract to purchase the Bonds, and in such case the deposit accompanying its proposal will be returned. See the Preliminary Official Statement - "TAX MATTERS."
FURTHER INFORMATION: A copy of the Preliminary Official Statement describing the Bonds, and any other information concerning the proposed financing, will be furnished upon request to the Municipal Advisor to the City as follows: A. M. Peché & Associates LLC, 1722 Locksley Drive, Lathrop, California 95330, telephone: (510) 812-3219, email:
[email protected]. The Official Notice of Sale and Preliminary Official Statement are available from the Municipal Advisor and may also be viewed on the Parity website at www.i-dealprospectus.com.
TERMS OF SALE
RIGHT TO CANCEL, POSTPONE OR RESCHEDULE SALE: The City reserves the right to cancel, postpone or reschedule the sale of the Bonds upon notice on the Parity web site at www.i-dealprospectus.com, no later than 5:00 p.m. Pacific Time on the business day preceding the date for receiving bids. If the sale is postponed, notice of the new date and time for receipt of bids shall be given through Parity as soon as practicable following a postponement and no later than 1:00 p.m. Pacific Time on the business day preceding the new date for receiving bids. Failure of any bidder to receive such Parity notice or any other form of notice of canceled, postponed or rescheduled sale will not affect the legality or validity of any sale. -C-6-
SUBMISSION OF BIDS: Bids will be received electronically as described below, provided that such electronic bid must be received no later than the date and time set for receipt of bids.
ELECTRONIC BIDS: The City will accept bids in electronic form solely through Parity. Neither the City, the Municipal Advisor nor Bond Counsel assumes any responsibility for, and each bidder expressly assumes risk of, any incomplete, inaccurate or untimely bid submitted by internet transmission by such bidder, including, without limitation, by reason of garbled transmissions, mechanical failure, engaged telephone or telecommunications lines, or any other cause arising from delivery by internet transmission. Bidders must comply with the following provisions relating the receipt of electronic bids:
Registration and Admission to Bid: Only FINRA registered broker-dealers and dealer banks with DTC clearing arrangements shall be eligible to bid. Bidders who have already registered with Parity may call Parity at (212) 849-5021 to confirm their ID number and password.
Bidding Details: All bids must be unconditional and submitted on the Parity BiDCOMP™/PARITY® website. No facsimile, personal delivery bids or bids delivered by any other method will be accepted.
Verification: All bids are subject to verification and approval by the City. The City has the right to deem each final bid reported on Parity immediately after the deadline for receipt of bids to be accurate and binding on the bidder. Information or calculations provided by Parity other than the information required to be provided by the bidder in accordance with this Official Notice of Sale is for information purposes only and is not be binding on either the bidder or the City. If two or more bidders offer bids for the same Bonds at the same lowest TIC, the City reserves the right to exercise its own discretion and judgment in making the award.
UNDERWRITER’S DISCOUNT; NOT-TO-EXCEED AMOUNT: The maximum Underwriter’s Discount cannot exceed 1.00% of the par amount of the issue or $50,000. This will be funded as premium on the Bonds.
FORM OF BID; MINIMUM PURCHASE PRICE: All bids must be for not less than all of the Bonds hereby offered for sale and for not less than the aggregate par amount thereof. Upon notification of award of the bid, the successful bidder for the Bonds shall provide initial offering prices for each maturity of the Bonds. The aggregate purchase price to be paid for the Bonds may not be less than the par value thereof and must include original issue premium of at least $225,000 consisting of approximately the following amounts: a minimum $175,000 to be deposited into the Costs of Issuance Fund, and an amount not to exceed $50,000 needed to fund an Underwriter’s Discount, as described above. No bid will be entertained which provides for original issue premium of less than $225,00 or more than $400,000 in premium. Therefore, original issue premium should not be less than $225,000 or more than $400,000. Individual maturities of the Bonds may be reoffered at par, a premium or a discount.
All bids will be deemed to incorporate all of the terms of this Official Notice of Sale. If the sale of the Bonds is canceled or postponed, all bids for the Bonds shall be rejected. No bid will be accepted after the time for receiving bids. -C-7-
THE CITY RETAINS ABSOLUTE DISCRETION TO DETERMINE WHETHER ANY BID IS TIMELY AND COMPLETE. NONE OF THE CITY, THE MUNICIPAL ADVISOR, OR KUTAK ROCK LLP (“BOND COUNSEL”) TAKES ANY RESPONSIBILITY FOR INFORMING
ANY BIDDER PRIOR TO THE TIME FOR RECEIVING BIDS THAT ITS BID IS INCOMPLETE OR NOT RECEIVED.
EACH BIDDER SUBMITTING AN ELECTRONIC BID UNDERSTANDS AND
AGREES BY DOING SO THAT IT IS SOLELY RESPONSIBLE FOR ALL ARRANGEMENTS WITH BiDCOMP/PARITY® AND THAT BiDCOMP/PARITY® IS NOT ACTING AS AN AGENT OF THE CITY. INSTRUCTIONS AND FORMS FOR SUBMITTING ELECTRONIC BIDS MUST BE OBTAINED FROM BiDCOMP/PARITY® AND THE CITY ASSUMES NO
RESPONSIBILITY FOR ENSURING OR VERIFYING BIDDER COMPLIANCE WITH THE PROCEDURES OF BiDCOMP/PARITY®. THE CITY SHALL ASSUME THAT ANY BID RECEIVED THROUGH BiDCOMP/PARITY® HAS BEEN MADE BY A DULY AUTHORIZED AGENT OF THE BIDDER.
THE CITY WILL MAKE ITS BEST EFFORTS TO ACCOMMODATE ELECTRONIC BIDS; HOWEVER, THE CITY, THE MUNICIPAL ADVISOR AND BOND COUNSEL
ASSUME NO RESPONSIBILITY FOR ANY ERROR CONTAINED IN ANY BID SUBMITTED
ELECTRONICALLY, OR FOR FAILURE OF ANY BID TO BE TRANSMITTED, RECEIVED OR ACCEPTED AT THE OFFICIAL TIME FOR RECEIPT OF BIDS. THE OFFICIAL TIME
FOR RECEIPT OF BIDS WILL BE DETERMINED BY THE CITY AND THE CITY SHALL NOT BE REQUIRED TO ACCEPT THE TIME KEPT BY BiDCOMP/PARITY® AS THE OFFICIAL TIME.
DETERMINATION OF BEST BID: Unless all bids are rejected, the Bonds will be awarded to the responsible bidder who submits a conforming bid that represents the lowest true interest cost to the City. The true interest cost specified in any bid will be that rate which, when used in computing the present worth of all payments of principal and interest to be paid on all Bonds from the date of original delivery (which is assumed to be June 30, 2026) to their respective maturity dates or mandatory sinking fund redemption dates, produces an amount equal to the purchase price specified in such bid. For purposes of computing the true interest cost represented by any proposal, the purchase price specified in such proposal shall be equal to the par amount of the Bonds plus any net premium (proposed premium less any proposed discount) specified in such proposal, and the true interest cost shall be calculated by the use of a semiannual interval of compounding interest based on the Interest Payment Dates for the Bonds. Each proposal should include at least $225,000 of premium, but not more the $400,000 of premium. Therefore, original issue premium should not be less than $225,00 or more than $400,000.
In the event that two or more bidders offer bids for the Bonds at the same true interest cost, the City reserves the right to exercise its own discretion and judgment in making the award. If multiple bids with respect to the Bonds are received from a single bidder by any means or combination thereof, the City shall be entitled to accept the bid representing the lowest true interest cost to the City, and each bidder agrees by submitting multiple bids to be bound by the bid representing the lowest true interest cost to the City.
Bid evaluations or rankings made by Parity are not binding on the City. -C-8-
ESTIMATE OF TRUE INTEREST COST. Each bidder is requested, but not required, to supply an estimate of the true interest cost based upon its bid, which will be considered as informative only and not binding on either the bidder or the City.
RIGHT OF REJECTION AND WAIVER OF IRREGULARITY: The City reserves the right, in its sole discretion, to reject any and all bids and to waive any irregularity or informality in any bid which does not materially affect such bid or change the ranking of the bids.
PROMPT AWARD: An authorized representative of the City will accept the best responsible bid for the purchase of the Bonds by notice to the winning bidder. If two or more bids setting forth identical interest rates and premium, if any, are received, the City reserves the right to exercise its own discretion and judgment in making the award. An authorized representative of the City may also reject any and all bids. Sale of the Bonds will be awarded or all bids will be rejected not later than 24 hours after the expiration of the time prescribed for the receipt of proposals unless such time of award is waived by the winning bidder; provided, that the award may be made after the expiration of the specified time if the bidder does not notify the City in writing of the withdrawal of its proposal.
PLACE OF DELIVERY; CANCELLATION FOR LATE DELIVERY: It is expected that the Bonds will be delivered to DTC for the account of the winning bidder on June 30, 2026.
The winning bidder has the right, at the winning bidder's option, to cancel the contract of purchase if the Bonds are not tendered for delivery within 60 days from the date of the sale thereof, and in such event the Purchaser will be entitled only to the return of the Good Faith Deposit, without interest thereon.
GOOD FAITH DEPOSIT. To secure the City from any loss resulting from the failure of the apparent winning bidder to comply with the terms of its bid, the winning bidder will be required to deposit the amount of Fifty Thousand Dollars ($50,000) (the "Good Faith Deposit") by no later than 12:00 p.m. Pacific Time, on the day following the receipt of the bids, by wire transfer to City, as follows:
Mechanics Bank
ABA #121102036
Beneficiary Account # 3505811260
Beneficiary: City of Grover Beach
REF: GO Bonds Series 2026
No interest will be paid upon the Good Faith Deposit made by any bidder. The Good Faith Deposit of the Purchaser will immediately become the property of the City. The Good Faith Deposit will be held and invested for the exclusive benefit of the City. The Good Faith Deposit, without interest thereon, will be credited against the purchase price of the Bonds purchased by the Purchaser at the time of delivery thereof.
If the purchase price is not paid in full upon tender of the Bonds, the City shall retain the Good Faith Deposit and the Purchaser will have no right in or to the Bonds or to the recovery of its Good Faith Deposit, or to any allowance or credit by reason of such deposit, unless it shall appear that the Bonds would not be validly delivered to the Purchaser in the form and manner proposed, except pursuant to a right of cancellation. See "TERMS OF SALE – Place of Delivery; Cancellation for Late Delivery,” above. In the event of nonpayment for the Bonds by a successful bidder, the City reserves any and all rights granted by law to recover the full purchase price of the Bonds and, in addition, any damages suffered by the City. -C-9-
CLOSING CONDITIONS
PAYMENT OF PURCHASE PRICE: The winning bidder will be required to pay the purchase price of the Bonds (including any premium) to the accounts specified by the City and in funds which are immediately available to the City. Such payment shall be made on the date of original delivery of the Bonds to DTC. Any expense for making payment in immediately available funds shall be borne by the Purchaser. The City will deliver to the Purchaser, dated as of the delivery date, the legal opinions with respect to the Bonds described in APPENDIX C – “PROPOSED FORM OF OPINION OF BOND COUNSEL" to the Preliminary Official Statement.
NO LITIGATION: There is no litigation pending restraining or enjoining the sale, issuance or delivery of the Bonds or any part thereof, or the entering into or performance of any obligation of the City, or concerning the validity of the Bonds, the ability of the City to levy and collect the ad valorem tax required to pay debt service on the Bonds, the corporate existence or the boundaries of the City, or the entitlement of any officers of the City who will execute the Bonds to their respective offices, and the purchaser will be furnished a nolitigation certificate certifying to the foregoing as of and at the delivery of the Bonds.
DETERMINATION OF ISSUE PRICE:
(a) The winning bidder shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at closing an “issue price” or similar certificate setting forth the reasonably expected initial offering price to the public of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Bond Counsel. All actions to be taken by the City under this Notice of Sale to establish the issue price of the Bonds may be taken on behalf of the City by the Municipal Advisor and any notice or report to be provided to the City may be provided to the Municipal Advisor.
(b) The City intends that the provisions of Treasury Regulation Section 1.148- 1(f)(3)(i) (defining “competitive sale” for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the “competitive sale requirements”) because:
(i) the City shall disseminate this Notice of Sale to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (ii) all bidders shall have an equal opportunity to bid; (iii) the City may receive bids from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and
(iv) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest interest cost), as set forth in this Notice of Sale.
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Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. Bidders should prepare their bids on the assumption that the City will determine the issue price of the Bonds either based on the reasonably expected initial offering price to the public or by application of the 10% test.
Paragraphs (c) through (f) below shall apply only In the event that the competitive sale requirements are not satisfied.
(c) In the event that the competitive sale requirements are not satisfied, the City shall so advise the prospective winning bidder prior to awarding the Bonds. The City will determine to treat the first price at which 10% of each maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity. The prospective winning bidder shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date and time of the award of the Bonds.
(d) Until the 10% test has been satisfied as to each maturity of the Bonds, the winning bidder agrees to promptly report to the City the prices at which the unsold Bonds of that maturity have been sold to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold to the public. (e) By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement and each retail distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as applicable, to report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public and (ii) any agreement among underwriters relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter that is a party to a retail distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such retail distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the winning bidder or such underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public.
(f) Sales of any Bonds to any person that is a related party to an underwriter shall not constitute sales to the public for purposes of this Notice of Sale. Further, for purposes of this Notice of Sale:
(i) “public” means any person other than an underwriter or a related party, (ii) “underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a -C-11-
party to a retail distribution agreement participating in the initial sale of the Bonds to the public),
(iii) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and
(iv) “sale date” means the date that the Bonds are awarded by the City to the winning bidder.
CUSIP NUMBERS: It is anticipated that CUSIP numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bonds nor any error with respect thereto will constitute cause for a failure or refusal by the purchaser to accept delivery of and pay for the Bonds in accordance with the terms hereof. All expenses in relation to the printing of CUSIP numbers on the Bonds will be paid for by the City, except that the CUSIP Service Bureau charge for the assignment of said numbers will be the responsibility of and shall be paid for by the purchaser.
CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION FEES: All fees payable to the California Debt and Investment Advisory Commission in connection with the issuance of the Bonds are the sole responsibility of the purchaser of the Bonds.
DTC FEES: All fees due DTC with respect to the Bonds shall be paid by the successful bidder or bidders.
OFFICIAL STATEMENT: The City has approved a preliminary Official Statement relating to the Bonds. Copies of such preliminary Official Statement will be distributed to any bidder, upon request, prior to the sale in a form "deemed final" by the City for purposes of Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule"). Within seven business days from the sale date, the City will deliver to the purchaser copies of the final Official Statement, executed by an authorized representative of the City and the City and dated the date of delivery thereof to the purchaser, in sufficient number to allow the purchaser to comply with paragraph (b)(4) of the Rule and to satisfy the Municipal Securities Rulemaking Board (the "MSRB") Rule G-32, or any other rules adopted by the MSRB, but not in excess of 25 copies, which shall include information permitted to be omitted by paragraph (b)(1) of the Rule and such other amendments or supplements as are been approved by the City (the "Final Official Statement"). The purchaser agrees that it will not confirm the sale of any Bonds unless the confirmation of sale is accompanied or preceded by the delivery of a copy of the Final Official Statement. The City will furnish to the winning bidder, at no charge, not in excess of 25 copies of the Final Official Statement for use in connection with any resale of the Bonds. -C-12-
CERTIFICATE REGARDING FINAL OFFICIAL STATEMENT: A responsible officer of the City will certify to the original purchaser of the Bonds, as a condition of closing, to the best of such officer's knowledge and belief, nothing has come to his or her attention to lead him or her to believe that the Final Official Statement (excluding reoffering information and information relating to The Depository Trust Company and its book-entry system, as to which no view will be expressed) contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
CONTINUING DISCLOSURE: In order to assist bidders in complying with S.E.C. Rule 15c2-12(b)(5), the City will execute and deliver a Continuing Disclosure Certificate, under which the City undertakes to provide certain annual financial information and notices of the occurrence of certain enumerated events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. Such Continuing Disclosure Certificate will be a document required to be delivered at closing by the City, and the failure by the City to deliver such document in form and substance acceptable to Bond Counsel and the winning bidder will relieve the winning bidder of its obligation to purchase the Bonds.
Digital Assurance Corporation, Inc. (“DAC”) has been engaged by the City to review and prepare a report on the City’s compliance with its continuing disclosure undertakings with respect to its bonds during the past five years. Prospective bidders may obtain access to DAC’s report on its website by sending a written request via email to DAC ([email protected]), referencing “Grover Beach 2026 GO Bonds” in the email subject line, by no later than 12:00 noon California time on June 15, 2026. The City can give no assurance as to the timeliness with which DAC will provide access to the report online or that the procedures performed by DAC in developing the report are sufficient for any purpose.
QUALIFICATION FOR SALE. The City will furnish such information and take such action not inconsistent with law as the purchaser may request and the City may deem necessary or appropriate to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of the United States of America as may be designated by the purchaser; provided, that the City will not execute a general or special consent to service of process or qualify to do business in connection with such qualification or determination in any jurisdiction. By submitting its bid for the Bonds, the purchaser assumes all responsibility for qualifying the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of the states and jurisdictions in which the purchaser offers or sells the Bonds, including the payment of fees for such qualification. Under no circumstances may the Bonds be sold or offered for sale or any solicitation of an offer to buy the Bonds be made in any jurisdiction in which such sale, offer or solicitation would be unlawful under the securities laws of the jurisdiction.
CLOSING PAPERS. Each proposal will be understood to be conditioned upon the City furnishing to the purchaser, without charge, concurrently with payment for and delivery of the Bonds, the following closing papers, each dated the date of delivery:
(a) The opinion of Bond Counsel, approving the validity of the Bonds and stating that, subject to compliance by the City with certain covenants, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax, and interest on the Bonds is exempt from personal income taxation imposed by the State of -C-13-
California. Other tax consequences to holders of the Bonds, if any, will not be addressed in the opinion;
(b) A certificate of the City certifying that on the basis of the facts, estimates and circumstances in existence on the date of issue, it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to be arbitrage bonds; (c) A certificate of the City, signed by officers and representatives of the City, certifying that the officers and representatives have signed the Bonds whether by facsimile or manual signature, and that they were respectively duly authorized to execute the same; (d) The receipt of the Paying Agent evidencing the receipt of the purchase price of the Bonds;
(e) A certificate of the City, certifying that there is no known litigation threatened or pending affecting the validity of the Bonds; and
(f) A certificate of the City to the effect that at the time of the sale of the Bonds, and at all times subsequent thereto up to and including the time of the delivery of the Bonds, the Final Official Statement did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
RIGHT TO MODIFY OR AMEND. Other than with respect to postponement or cancellation as described in this Official Notice of Sale, and in addition to the City's right to adjust the payment amounts of the Bonds as provided in "DESCRIPTION OF THE BONDS - Adjustment of Principal Payments" the City reserves the right to modify or amend this Official Notice of Sale in any respect including, without limitation, increasing or decreasing the principal amount of any serial maturity or mandatory sinking fund payment for the Bonds and adding or deleting serial or term maturity and mandatory sinking fund payment dates, along with corresponding principal amounts with respect thereto; provided, that, subject to the terms of this Notice of Sale (see "DESCRIPTION OF THE BONDS - Adjustment of Principal Payments") any such modification or amendment will be communicated to potential bidders through Parity not later than 1:00 p.m. Pacific Time on the business day preceding the date for receiving bids. Failure of any potential bidder to receive notice of any modification or amendment will not affect the sufficiency of any such notice or the legality of the sale.
ADDITIONAL INFORMATION. Prospective bidders should read the entire Preliminary Official Statement, copies of which may be obtained in electronic form from the Municipal Advisor from the following address: A. M. Peché & Associates LLC, 1722 Locksley Drive, Lathrop, California 95330, telephone: (510) 812-3219, email: [email protected].
Date: May 26, 2026
-C-14-
EXHIBIT A
$5,000,000
CITY OF GROVER BEACH
(County of San Luis Obispo, California)
2026 GENERAL OBLIGATION BONDS
(STREET IMPROVEMENTS)
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [NAME OF UNDERWRITER] (the “Purchaser”), hereby certifies as set forth below with respect to the sale of the above-captioned obligations (the “Bonds”).
1. Reasonably Expected Initial Offering Price.
(a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by the Purchaser are the prices listed in Schedule A (the “Expected Offering Prices”). The Expected Offering Prices are the prices for the Maturities of the Bonds used by the Purchaser in formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of the bid provided by the Purchaser to purchase the Bonds. (b) The Purchaser was not given the opportunity to review other bids prior to submitting its bid.
(c) The bid submitted by the Purchaser constituted a firm offer to purchase the Bond
2. Defined Terms.
(a) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(b) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (c) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is June 16, 2026. (d) Underwriter means (i) any person that agrees pursuant to a written contract with the City of Grover Beach (the “City”) (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
-C-15-
The representations set forth in this certificate are limited to factual matters only.
Nothing in this certificate represents the Purchaser’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the City with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Kutak Rock LLP in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the City from time to time relating to the Bonds.
[UNDERWRITER]
By:__________________________________
Name:_______________________________
Dated: June __, 2026
-C-16-
SCHEDULE A
EXPECTED OFFERING PRICES
-C-17-
SCHEDULE B
COPY OF PURCHASER’S BID
A. M. PECHÉ & ASSOCIATES LLC Phone: (209) 888-4183
1722 Locksley Drive email: [email protected]
Lathrop, CA 95330-8432
City of Grover Beach
2026 General Obligation Bonds
Time and Responsibility Schedule*
Draft of April 16, 2026
City of Grover Beach G
Lozano Smith, City Attorney CA
A. M. Peché & Associates LLC, Municipal Advisor MA
Kutak Rock LLP, Bond and Disclosure Counsel BC
Standard & Poor’s, Rating Agency RA
Royce Printing, Financial Printer P
US Bank, Paying and Fiscal Agent PA
_________, Underwriter UW
*Subject to change
Date Responsibility Party(ies)
February 5 Preliminary call to discuss draft Time Schedule G, MA February 10 City Council Update on Measure K-14 Street Rehab Program G March 3 Initial GO Bond Kickoff Meeting at 12:00pm G, MA, BC March 4 City section of Preliminary Official Statement sent to City BC March 5 Intent Resolution and Bond Buyer Intent Notice circulated BC March 11 Intent Resolution, Staff Report sent for March 23 Board Meeting BC March 20 City returns City section of Preliminary Official Statement G March 23 Bond Presentation to Council and adoption of Intent Resolution G, MA March 27 Issuance Resolution and POS distributed for comments BC April 3 Comments due on Issuance Resolution All
April 6 Comments due on POS All
April 8 2nd draft Issuance Resolution and 2nd draft of POS circulated BC April 20 2025-26 Budget, 2024-25 Audit and POS sent to S&P MA April 29 Discuss updated New Money and Refunding Numbers U, MA Attachment 2
City of Grover Beach
2026 General Obligation Bonds
Time and Responsibility Schedule
page 2
Date Responsibility Party(ies)
April 30 Determine whether to proceed with Refunding and Negotiated Sale G, MA, BC, UA May 1 Questions from S&P sent to City and MA RA
May 13 Agenda deadline for May 26 Council meeting All
Issuance Resolution and POS sent to City BC
May 20 Responses from City sent to S&P MA
May 22 Send Notice of Intent to Bond Buyer for May 28 publication (15-day requirement) MA
May 26 City Council approves GO Resolution and related docs G, MA, BC May 26 Prep meeting before S&P call 12:30pm G, CA, MA
Rating Call with S&P at 1:00-2:00pm G, CA, MA, BC
May 28 Notice of Intent printed in Bond Buyer
(15-day requirement) MA, BC
June 3 Rating provided RA, MA
June 4 POS printed BC, P
June 5 Notice of Sale finalized and sent to IPREO w-POS MA, BC June 16 Accept Bids on Parity MA
Good Faith Deposit wired to Mechanics Bank UW
Final numbers circulated MA
June 17 Draft of final Official Statement circulated BC June 18 Comments due on Official Statement by 10:00am All June 19 Print Official Statement and deliver to Underwriter BC, P Circulate draft set of legal documents for review BC
June 22 Comments due on documents by 3:00pm All
June 23 Documents sent to City for signature BC
June 23-24 City Officials sign documents G
June 24 Documents returned to Bond Counsel for delivery June 25 G City of Grover Beach
2026 General Obligation Bonds
Time and Responsibility Schedule
page 3
Date Responsibility Party(ies)
June 29 Preclosing All
June 30 Closing All
*Preliminary, subject to change
Kutak Rock LLP
Draft of 5/11/26
4938-5081-9471.5
PRELIMINARY OFFICIAL STATEMENT DATED JUNE __, 2026
NEW ISSUE—FULL BOOK-ENTRY RATING: S&P: “[__]”
(See the caption “RATING”)
In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and continuing compliance with certain covenants, interest on the Bonds (including any original issue discount properly allocable to the owner of a Bond) is excludable from gross income for federal income tax purposes and is not a specific preference item for purposes of the federal alternative minimum tax imposed on individuals. Interest on the Bonds may affect the federal alternative minimum tax imposed on certain corporations. Bond Counsel is also of the opinion that interest on the Bonds is exempt from State of California personal income taxes. For a more detailed description of such opinions of Bond Counsel, see the caption “TAX MATTERS.” $5,000,000*
CITY OF GROVER BEACH
(SAN LUIS OBISPO COUNTY, CALIFORNIA)
2026 GENERAL OBLIGATION BONDS
(STREET IMPROVEMENTS)
Dated: Date of Delivery Due September 1, as shown on inside front cover Issuance. The general obligation bonds captioned above (the “Bonds”) are being issued by the City of Grover Beach (the “City”) under provisions of the California Government Code and under a Resolution adopted by the City Council of the City (the “City Council”) on May 26, 2026 (the “Resolution”). The Bonds were authorized at an election of the registered voters of the City held on November 4, 2014, at which more than two-thirds of the persons voting on the proposition voted to authorize the issuance and sale of not to exceed $48,000,000 principal amount of general obligation bonds. The Bonds are the fifth series of bonds to be sold and issued under this authorization. After such issuance, there will remain $5,000,000* of authorized but unissued bonds. See the caption “THE BONDS—Authority for Issuance.” Security. The Bonds are general obligations of the City, payable solely from ad valorem property taxes levied and collected by the San Luis Obispo County (the “County”) on behalf of the City. The City Council is empowered and is obligated to authorize the County to annually levy ad valorem taxes upon all property subject to taxation by the City, without limitation as to rate or amount (except certain personal property which is taxable at limited rates) for the payment of the Bonds and the interest thereon when due. See the caption “SECURITY FOR THE BONDS.”
Purpose. The net proceeds of the sale of the Bonds will be used: (a) to finance improvements to streets within the City; and (b) to pay certain costs of issuing the Bonds. See the caption “PLAN OF FINANCE—Purpose of Issue; Deposit of Bond Proceeds.” Book-Entry-Only. The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). The Bonds are issuable as fully registered securities in denominations of $5,000 or any integral multiple thereof. Purchasers of the Bonds (the “Beneficial Owners”) will not receive physical certificates representing their interest in the Bonds. See the caption “THE BONDS” and Appendix E.
Payments. Interest on the Bonds accrues from the date of delivery and is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2027. Payments of principal and interest on the Bonds will be paid by U.S. Bank Trust Company, National Association, as Paying Agent (the “Paying Agent”), to DTC for subsequent disbursement to DTC Participants, which will remit such payments to the Beneficial Owners of the Bonds. See the caption “THE BONDS—Description of the Bonds.” Redemption. The Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described under the caption “THE BONDS—Redemption.”
The following firm has served as municipal advisor to the City for this issue.
A. M. Peché & Associates LLC
Maturity Schedule
(see inside front cover page)
Cover Page. This cover page contains certain information for general reference only. It is not a summary of all the provisions of the Bonds. Prospective investors must read the entire Official Statement to obtain information essential to making an informed investment decision.
The Bonds will be offered when, as and if issued and accepted by the Underwriter, subject to the approval as to legality by Kutak Rock LLP, Irvine, California, Bond Counsel to the City, and subject to certain other conditions. Kutak Rock LLP, Irvine, California, is also serving as Disclosure Counsel to the City. Certain legal matters are being passed upon for the City by the City Attorney. It is anticipated that the Bonds, in book entry form, will be available for delivery by DTC on or about June 30, 2026.
June __, 2026.
* Preliminary; subject to change.
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Attachment 3
4938-5081-9471.5
$5,000,000*
CITY OF GROVER BEACH
(SAN LUIS OBISPO COUNTY, CALIFORNIA)
2026 GENERAL OBLIGATION BONDS
(STREET IMPROVEMENTS)
MATURITY SCHEDULE
Base CUSIP®:† 399682
Maturity Date
(September 1)* Principal Amount* Interest Rate Yield Price CUSIP®†
Suffix
20__ $ % %
$_____* _____% Term Bond Due September 1, 20__*, Yield: ____%, Price: ____; CUSIP® Suffix: ___ * Preliminary; subject to change.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems. Copyright© CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database.
CUSIP® numbers are provided for convenience of reference only. None of the City, the Underwriter or their agents or counsel assume responsibility for the accuracy of such numbers.
4938-5081-9471.5
GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
Use of Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract between any bond owner and the City or the Underwriter. This Official Statement and the information contained herein are subject to completion or amendment without notice.
No Offering Except by This Official Statement. No dealer, broker, salesperson or other person has been authorized by the City or the Underwriter to give any information or to make any representations relating to the Bonds other than those contained in this Official Statement and, if given or made, such other information or representation must not be relied upon as having been authorized by the City or the Underwriter.
No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.
Estimates and Projections. When used in this Official Statement and in any continuing disclosure by the City, in any press release and in any oral statement made with the approval of an authorized officer of the City, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “forecast,” “expect,” “intend” and similar expressions identify “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur.
Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material. ALL PROJECTIONS, FORECASTS, ASSUMPTIONS, EXPRESSIONS OF OPINIONS,
ESTIMATES AND OTHER FORWARD-LOOKING STATEMENTS ARE EXPRESSLY QUALIFIED IN
THEIR ENTIRETY BY THE CAUTIONARY STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT.
Information in Official Statement. The information set forth in this Official Statement has been furnished by the City and other sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness by the City.
Involvement of Underwriter. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter (as defined under the caption “UNDERWRITING”) has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR
EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER
MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS
ACTING AS AGENT AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES
STATED ON THE INSIDE FRONT COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.
Document Summaries. All summaries of the Resolution or other documents referred to in this Official Statement are made subject to the provisions of such documents and qualified in their entirety to reference to such documents, and do not purport to be complete statements of any or all of such provisions. 4938-5081-9471.5
No Securities Laws Registration. The Bonds have not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, in reliance upon exceptions therein for the issuance and sale of municipal securities. The Bonds have not been registered or qualified under the securities laws of any state.
Effective Date. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the Bonds will, under any circumstances, give rise to any implication that there has been no change in the affairs of the City, or the other parties described in this Official Statement, or the condition of the property within the City since the date of this Official Statement.
Website. The City maintains a website and certain social media accounts. However, the information presented on the website or such social media accounts is not a part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds. -iii- 4938-5081-9471.5
CITY OF GROVER BEACH, CALIFORNIA
SAN LUIS OBISPO COUNTY
STATE OF CALIFORNIA
CITY COUNCIL
Kassi Dee, Mayor
Robert Robert, Mayor Pro Tem – District 1
Jules Tuggle, Councilmember – District 2
Kathy McCorry-Driscoll, Councilmember – District 3
Clint Weirick, Councilmember – District 4
CITY OFFICIALS
Matthew Bronson, City Manager
Kristin Eriksson, Assistant City Manager
Gregory A. Ray, Public Works Director
Wendi Sims, City Clerk
Nick Szamet, Administrative Services Director
PROFESSIONAL SERVICES
CITY ATTORNEY
Jennifer P. Thompson, Esq.
Lozano Smith
San Luis Obispo, California
BOND AND DISCLOSURE COUNSEL
Kutak Rock LLP
Irvine, California
MUNICIPAL ADVISOR
A. M. Peché & Associates LLC
Lathrop, California
BOND REGISTRAR, TRANSFER AGENT AND PAYING AGENT
U.S. Bank Trust Company, National Association
Los Angeles, California
TABLE OF CONTENTS
Page
-iv- 4938-5081-9471.5
INTRODUCTION .......................................................................................................................................1 The Bonds..............................................................................................................................................1 Purpose ..................................................................................................................................................2 Security and Sources of Payment for the Bonds...................................................................................3 Tax Matters............................................................................................................................................3 Offering and Delivery of the Bonds......................................................................................................3 Continuing Disclosure...........................................................................................................................3 Forward Looking Statements ................................................................................................................3 Professionals Involved in the Offering..................................................................................................4 Other Information..................................................................................................................................4 THE BONDS ...............................................................................................................................................5 Authority for Issuance ...........................................................................................................................5 Description of the Bonds.......................................................................................................................5 Payment of Principal and Interest..........................................................................................................6 Redemption ...........................................................................................................................................6 Defeasance.............................................................................................................................................8 Discontinuation of Book-Entry-Only System; Payment to Beneficial Owners ....................................9 PLAN OF FINANCE...................................................................................................................................9 Purpose of Issue; Deposit of Bond Proceeds.........................................................................................9 Sources and Uses of Funds..................................................................................................................10 DEBT SERVICE SCHEDULE..................................................................................................................11 SECURITY FOR THE BONDS................................................................................................................12 General ................................................................................................................................................12 Factors Affecting Property Tax Security for the Bonds......................................................................12 Debt Service Fund; Investment of Funds............................................................................................13 Statutory Lien......................................................................................................................................14 City General Obligation Bonded Debt Structure.................................................................................14 TAX BASE FOR PAYMENT OF BONDS ..............................................................................................15 Property Tax Collection Procedures....................................................................................................15 Taxation of State-Assessed Utility Property .......................................................................................16 Assessed Valuation..............................................................................................................................17 Alternative Method of Tax Apportionment—Teeter Plan ..................................................................19 Appeals of Assessed Value .................................................................................................................21 Tax Rates.............................................................................................................................................22 Major Taxpayers..................................................................................................................................23 Direct and Overlapping Debt...............................................................................................................23
CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY REVENUES AND APPROPRIATIONS.....................................................................................................................25 Article XIIIA of the State Constitution ...............................................................................................25 Legislation Implementing Article XIIIA.............................................................................................26 Article XIIIB of the State Constitution ...............................................................................................26 Articles XIIIC and XIIID of the State Constitution ............................................................................27 Proposition 62......................................................................................................................................28 Proposition 1A.....................................................................................................................................28 Proposition 22......................................................................................................................................29
TABLE OF CONTENTS
(continued)
Page
4938-5081-9471.5
Proposition 26......................................................................................................................................29 Future Initiatives and Changes in Law................................................................................................30 LEGAL OPINIONS...................................................................................................................................33 NO LITIGATION......................................................................................................................................33 AUDITED FINANCIAL STATEMENTS ................................................................................................34 CONTINUING DISCLOSURE.................................................................................................................34 MUNICIPAL ADVISOR...........................................................................................................................34 PROFESSIONAL FEES............................................................................................................................35 RATING ....................................................................................................................................................35 UNDERWRITING ....................................................................................................................................35 MISCELLANEOUS ..................................................................................................................................36 EXECUTION.............................................................................................................................................36
APPENDIX A CERTAIN INFORMATION CONCERNING THE CITY OF GROVER BEACH
APPENDIX B ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2025
APPENDIX C PROPOSED FORM OF OPINION OF BOND COUNSEL
APPENDIX D FORM OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX E DTC AND THE BOOK-ENTRY-ONLY SYSTEM
APPENDIX F SAN LUIS OBISPO COUNTY QUARTERLY REPORT OF INVESTMENTS 1 4938-5081-9471.5
OFFICIAL STATEMENT
$5,000,000*
City of Grover Beach
(San Luis Obispo County, California)
2026 General Obligation Bonds
(Street Improvements)
The purpose of this Official Statement, which includes the front cover page, inside front cover page and attached appendices, is to set forth certain information concerning the sale and delivery of the bonds captioned above (the “Bonds”) by the City of Grover Beach (the “City”). All capitalized terms used in this Official Statement, unless noted otherwise, have the meanings set forth in the Resolution (as such term is defined below).
INTRODUCTION
The City
The City is located in San Luis Obispo County (the “County”) along the central coast of California (the “State”), 92 miles north of Santa Barbara and 150 miles south of Monterey, midway between San Francisco and Los Angeles. U.S. Highway 101, a major north-south thoroughfare in coastal California, passes through the City. Amtrak also provides twice-daily rail service to the City from Los Angeles.
The City encompasses a total area of approximately 2.25 square miles and is contiguous with the Pismo Beach area, 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 a relaxing atmosphere unique to coastal communities. Major attractions in the City include a State Beach, a beach boardwalk, the entrance to the Oceano Dunes State Vehicular Recreation Area and the Butterfly Grove, a stopping point for migrating monarch butterflies.
According to the California Department of Finance, the City had a population of 12,411 as of January 1, 2025. The total assessed valuation of taxable property in the City in the fiscal year ended June 30 (each, a “Fiscal Year”), 2026 is approximately $2,456,475,342.
The City was founded in 1887 and incorporated in 1959. The City operates under a council-manager form of government. Policymaking and legislative authority are vested in a city council (the “City Council”), consisting of the Mayor and four Council Members who are elected by geographic districts. The City 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, daily administration of City affairs, preparation and submission of the annual budget to the City Council for approval, appointing the City Clerk and other employees and otherwise managing daily operations of the City.
See Appendices A and B for demographic and financial information regarding the City.
The Bonds
Authority for Issuance. The Bonds represent a sale of bonds approved by more than two-thirds of the qualified voters in the City voting at a municipal election on November 4, 2014 to approve the issuance of up to $48,000,000 of general obligation bonds (the “Authorization”). * Preliminary; subject to change.
2 4938-5081-9471.5
On March 25, 2015, the City issued and sold the first series of general obligation bonds pursuant to the Authorization, the “City of Grover Beach (San Luis Obispo County, California) 2015 General Obligation Bonds (Street Improvements)” (the “2015 GO Bonds”), in the aggregate principal amount of $5,000,000. The 2015 GO Bonds are currently outstanding in the aggregate principal amount of $3,595,000.
On March 30, 2016, the City issued and sold the second series of general obligation bonds pursuant to the Authorization, the “City of Grover Beach (San Luis Obispo County, California) 2016 General Obligation Bonds (Street Improvements)” (the “2016 GO Bonds”), in the aggregate principal amount of $8,000,000. The 2016 GO Bonds are currently outstanding in the aggregate principal amount of $5,940,000.
On December 20, 2017, the City issued and sold the third series of general obligation bonds pursuant to the Authorization, the “City of Grover Beach (San Luis Obispo County, California) 2017 General Obligation Bonds (Street Improvements)” (the “2017 GO Bonds”), in the aggregate principal amount of $15,000,000. The 2017 GO Bonds are currently outstanding in the aggregate principal amount of $12,265,000.
On January 26, 2022, the City issued and sold the fourth series of general obligation bonds pursuant to the Authorization, the “City of Grover Beach (San Luis Obispo County, California) 2022 General Obligation Bonds (Street Improvements)” (the “2022 GO Bonds”), in the aggregate principal amount of $10,000,000. The 2022 GO Bonds are currently outstanding in the aggregate principal amount of $10,000,000.
The Bonds are the fifth series of bonds issued under the Authorization. Immediately following the issuance of the Bonds, $5,000,000* of the Authorization will remain available for future issuance. Proceeds of bonds issued pursuant to the Authorization may be used, generally, for projects that improve and repair streets, increase street safety and promote economic and job growth. See the caption “THE BONDS—Authority for Issuance.”
The Bonds are being issued under the provisions Article 1 of Chapter 4 of Part 3 of Division 4 of Title 4 of the Government Code of the State of California, commencing with Section 43600 thereof, and Section 53506 et seq. of the Government Code of the State of California. The City authorized the issuance of the Bonds under a Resolution adopted by the City Council on May 26, 2026 (the “Resolution”).
Payment and Registration of the Bonds. The Bonds will be dated their date of original issuance and delivery (the “Dated Date”) and will be issued as fully registered bonds, without coupons, in denominations of $5,000 or any integral multiple thereof, registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), and will be available under the book-entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants as described below.
Beneficial Owners will not be entitled to receive physical delivery of the Bonds.
Interest on the Bonds accrues from the Dated Date and is payable semiannually March 1 and September 1 of each year, commencing March 1, 2027 (each, an “Interest Payment Date”), and principal is payable with respect to the Bonds on the dates set forth in the Maturity Schedule on the inside front cover page hereof.
Payments of principal of and interest on the Bonds will be paid by U.S. Bank Trust Company, National Association, as Paying Agent (the “Paying Agent”), to DTC for subsequent disbursement to DTC Participants, who will remit such payments to the Beneficial Owners of the Bonds.
See the captions “THE BONDS—Description of the Bonds” and “THE BONDS—Payment of Principal and Interest” herein and Appendix E.
Redemption. The Bonds are subject to optional and mandatory sinking fund redemption prior to their maturity as described under the caption “THE BONDS—Redemption.” * Preliminary; subject to change.
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Purpose
The net proceeds of the sale of the Bonds will be used: (a) to finance improvements to streets within the City; and (b) to pay certain costs of executing and delivering the Bonds. See the caption “PLAN OF FINANCE—Purpose of Issue; Deposit of Bond Proceeds.”
Security and Sources of Payment for the Bonds
The Bonds are general obligations of the City, payable solely from ad valorem property taxes levied and collected by the County on behalf of the City. The City Council is empowered and is obligated to authorize the County to annually levy ad valorem taxes upon all property subject to taxation by the City, without limitation as to rate or amount (except certain personal property which is taxable at limited rates) for the payment of the Bonds and the interest thereon when due. See the caption “SECURITY FOR THE BONDS.” Tax Matters
In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and continuing compliance with certain covenants, interest on the Bonds (including any original issue discount properly allocable to the owner of a Bond) is excludable from gross income for federal income tax purposes and is not a specific preference item for purposes of the federal alternative minimum tax imposed on individuals. Interest on the Bonds may affect the federal alternative minimum tax imposed on certain corporations. Bond Counsel is also of the opinion that interest on the Bonds is exempt from State of California personal income taxes. For a more detailed description of such opinions of Bond Counsel, see the caption “TAX MATTERS.” Continuing Disclosure
The City will covenant for the benefit of the Owners and Beneficial Owners of the Bonds to make available certain financial information and operating data relating to the City and to provide notices of the occurrence of certain listed events, in order to assist the Underwriter in complying with Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended (the “Rule”). See the caption “CONTINUING DISCLOSURE.” The specific nature of the information to be made available and the notices of listed events required to be provided are described in Appendix D.
Forward-Looking Statements
Certain statements included or incorporated by reference in this Official Statement (including the appendices hereto), including, but not limited to statements of future economic performance within the City, and statements of the assumptions underlying or relating thereto, constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget,” “intend,” or other similar words. Such forward-looking statements include, but are not limited to, certain statements contained in the information regarding the City herein.
ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH
FORWARD-LOOKING STATEMENTS INVOLVES KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS,
PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY
FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE CITY DOES NOT PLAN TO ISSUE ANY UPDATES OR
REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. ALL PROJECTIONS, FORECASTS, ASSUMPTIONS, EXPRESSIONS OF OPINIONS, 4 4938-5081-9471.5
ESTIMATES AND OTHER FORWARD-LOOKING STATEMENTS ARE EXPRESSLY QUALIFIED IN
THEIR ENTIRETY BY THE CAUTIONARY STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT.
Professionals Involved in the Offering
Kutak Rock LLP, Irvine, California, is acting as Bond Counsel with respect to the Bonds. Kutak Rock LLP, Irvine, California, is also serving as Disclosure Counsel to the City. Such law firm will receive compensation contingent upon the sale and delivery of the Bonds. Certain legal matters are being passed upon for the City by the City Attorney, Jennifer P. Thompson, Esq., Lozano Smith, San Luis Obispo, California. A.
M. Peché & Associates LLC, Lathrop, California, is acting as Municipal Advisor to the City. See the caption “MUNICIPAL ADVISOR.”
Other Information
This Official Statement speaks only as of its date, and the information contained herein is subject to change. Except as required by the Continuing Disclosure Certificate to be executed by the City with respect to the Bonds (the “Continuing Disclosure Certificate”), the City has no obligation to update the information in this Official Statement. See the caption “CONTINUING DISCLOSURE” and Appendix D.
No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representations other than as contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.
This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact.
The summaries and references to documents, statutes and constitutional provisions referred to herein do not purport to be comprehensive or definitive, and are qualified in their entirety by reference to each of such documents, statutes and constitutional provisions.
Certain of the information set forth herein, other than that provided by the City, has been obtained from official sources which are believed to be reliable but it is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the City. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose.
Capitalized terms used herein and not otherwise defined have the meanings set forth in the Resolution.
Brief descriptions of the Bonds, the Authorization, the Resolution and the City are included in this Official Statement. Such descriptions do not purport to be comprehensive or definitive. All references herein to the Authorization, the Resolution and the Constitution and the laws of the State, as well as the proceedings of the City with respect to the operations thereof and with respect to the Bonds, are qualified in their entirety by reference to such documents. References herein to the Bonds are qualified in their entirety by reference to the form thereof included in the Resolution. Copies of the proceedings of the City referred to above, the Resolution and other documents described in this Official Statement are available for inspection at the offices of the City at: City of Grover Beach, 154 South Eighth Street, Grover Beach, California 93433, Attention: City Clerk. The City may impose a charge for copying, mailing and handling. 5 4938-5081-9471.5
THE BONDS
Authority for Issuance
The Bonds are issued under Article 1 of Chapter 4 of Part 3 of Division 4 of Title 4 of the Government Code of the State of California, commencing with Section 43600 thereof, and Section 53506 et seq. of the Government Code of the State of California (collectively, the “Act”) and other applicable law. The City authorized the issuance of the Bonds pursuant to the Resolution.
The City received the Authorization at an election held on November 4, 2014, by an affirmative vote of
68.02% of the eligible voters within the City to issue up to $48,000,000 of general obligation bonds. On March 25, 2015, the City issued and sold the 2015 GO Bonds in the aggregate principal amount of $5,000,000, of which $3,595,000 is currently outstanding. On March 30, 2016, the City issued and sold the 2016 GO Bonds in the aggregate principal amount of $8,000,000, of which $5,940,000 is currently outstanding. On December 20, 2017, the City issued and sold the 2017 GO Bonds in the aggregate principal amount of $15,000,000, of which $12,265,000 is currently outstanding. On January 26, 2022, the City issued and sold the 2022 GO Bonds in the aggregate principal amount of $10,000,000, all of which is currently outstanding.
The Bonds are the fifth series of bonds issued under the Authorization. Immediately following the issuance of the Bonds, $5,000,000* of the Authorization will remain available for future issuance. Proceeds of bonds issued pursuant to the Authorization may be used, generally, for projects that improve and repair streets, increase street safety and promote economic and job growth.
Description of the Bonds
The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co., as nominee of DTC. Purchasers of the Bonds (the “Beneficial Owners”) will not receive physical certificates representing their interest in the Bonds. Payments of principal of and interest on the Bonds will be paid by the Paying Agent to DTC for subsequent disbursement to DTC Participants, which will remit such payments to the Beneficial Owners of the Bonds.
As long as DTC’s book-entry method is used for the Bonds, the Paying Agent will send any notice of prepayment or other notices to owners only to DTC. Any failure of DTC to advise any DTC Participant, or of any DTC Participant to notify any Beneficial Owner, of any such notice and its content or effect will not affect the validity or sufficiency of the proceedings relating to the prepayment of the Bonds called for prepayment or of any other action premised on such notice.
The Paying Agent, the City and the Underwriter have no responsibility or liability for any aspects of the records relating to or payments made on account of beneficial ownership, or for maintaining, supervising or reviewing any records relating to beneficial ownership, of interests in the Bonds.
See Appendix E.
Payment of Principal and Interest
Interest on the Bonds accrues from the Dated Date and is payable semiannually on each Interest Payment Date, and principal is payable with respect to the Bonds on the dates set forth in the Maturity Schedule on the inside front cover page hereof. See the caption “DEBT SERVICE SCHEDULE.” Interest on the Bonds will be calculated on the basis of a 360-day year comprised of twelve 30-day months. * Preliminary; subject to change.
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Interest on the Bonds is payable from the Interest Payment Date next preceding the date of authentication thereof unless: (a) a Bond is authenticated as of an Interest Payment Date, in which event it will bear interest from such date; (b) a Bond is authenticated prior to an Interest Payment Date and after the close of business on the fifteenth day of the month preceding the Interest Payment Date (each, a “Record Date”), in which event it will bear interest from such Interest Payment Date; (c) a Bond is authenticated on or before August 15, 2026, in which event it shall bear interest from the Closing Date; or (d) at the time of authentication of a Bond, interest is in default thereon, in which event it will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon.
Interest on the Bonds (including the final interest payment upon maturity) is payable by check of the Paying Agent mailed to the owner thereof at such owner’s address as it appears on the Registration Books (as such term is defined under the caption “—Discontinuation of Book-Entry-Only System; Payment to Beneficial Owners—Registration Books”) at the close of business on the fifteenth day of the month preceding the Interest Payment Date, except that at the written request of the Owner of at least $1,000,000 aggregate principal amount of the Bonds, which written request is on file with the Paying Agent as of any Record Date, interest on such Bonds shall be paid by wire transfer on the succeeding Interest Payment Date to an account in the United States of America as shall be specified in such written request.
Principal of and premium, if any, on the Bonds is payable in lawful money of the United States of America upon presentation and surrender at the principal office of the Paying Agent.
The Bonds shall be issued in denominations of $5,000 or any integral multiple thereof.
Redemption*
Optional Redemption. The Bonds maturing on or before September 1, 2036 are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after September 1, 2037 are subject to redemption prior to maturity, at the option of the City, in whole or in part among maturities on such basis as designated by the City and by lot within a maturity, from any available source of funds, on September 1, 2036 and any date thereafter, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.
Mandatory Sinking Fund Redemption. The Bonds maturing on September 1, 20__ (the “Term Bonds”) are subject to redemption prior to their stated maturity date, without a redemption premium, in part by lot, from mandatory sinking fund payments on such payment date and in the principal amounts as set forth in the following tables:
$_____ Term Bond Due September 1, 20__
Payment Date
(September 1) Payment Amount
20__ $
*
* Final Maturity
* Preliminary; subject to change.
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Redemption Procedure. The Paying Agent will cause notice of any redemption to be mailed, first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption: (a) to the Securities Depositories and the Municipal Securities Rulemaking Board; and (b) to the respective Owners of any Bonds designated for redemption, at their addresses appearing on the Registration Books (as defined below) maintained by the Paying Agent. Such mailing will not be a condition precedent to such redemption and failure to mail or to receive any such notice will not affect the validity of the proceedings for the redemption of such Bonds.
Such notice will state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, will designate the serial numbers of the Bonds to be redeemed by giving the individual number of each Bond or by stating that all Bonds between two stated numbers, both inclusive, or that all of the Bonds of one or more maturities, have been called for redemption, and will require that such Bonds be then surrendered at the principal office of the Paying Agent for redemption at the said redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date.
Partial Redemption. Upon surrender of Bonds redeemed in part only, the City will execute and the Paying Agent will authenticate and deliver to the Owner, at the expense of the City, a new Bond or Bonds, of the same maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds.
Effect of Redemption. From and after the date fixed for redemption, if notice of such redemption has been duly given and funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have been duly provided, such Bonds so called will cease to be entitled to any benefit under the Resolution other than the right to receive payment of the redemption price, and no interest will accrue thereon on or after the redemption date specified in such notice.
Defeasance
The City has the option to pay and discharge the entire indebtedness on all or any portion of the outstanding Bonds in any one or more of the following ways: (a) by paying or causing to be paid the principal of and interest on such Bonds, as and when the same become due and payable; (b) by irrevocably depositing, in trust, at or before maturity: (i) lawful money of the United States of America in an amount equal to the principal amount of such Bonds and all unpaid interest thereon to maturity; or (ii) Government Obligations (as defined below), the principal of and interest on, which when due, in the opinion of a certified public accountant delivered to the City, will provide money sufficient to pay the principal of and all unpaid interest to maturity on the Bonds to be paid, as such principal and interest become due; and (c) by delivering such Bonds to the Paying Agent for cancellation by it.
“Government Obligations” means direct and general obligations of the United States of America, or obligations that are unconditionally guaranteed as to principal and interest by the United States of America, or “pre-refunded” municipal obligations rated in the highest rating category by Moody’s Investors Service (“Moody’s”) or S&P Global Ratings, a Standard & Poor’s Financial Services LLC business (“S&P”). In the case of direct and general obligations of the United States of America, Government Obligations shall include evidences of direct ownership of proportionate interests in future interest or principal payments of such obligations. Investments in such proportionate interests must be limited to circumstances where: (A) a bank or trust company acts as custodian and holds the underlying United States obligations; (B) the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor of the underlying United States obligations; and (C) the underlying United States obligations are held in a special account, segregated from the custodian’s general assets, and are not available to satisfy any claim of the custodian, any person claiming through the custodian, or any person to whom the custodian may be obligated; provided that such obligations are rated or assessed at least as high as direct and general obligations of the United States of America by either Moody’s or S&P.
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Discontinuation of Book-Entry-Only System; Payment to Beneficial Owners If the book-entry system as described above is no longer used with respect to the Bonds, the following provisions will govern the registration, transfer, and exchange of the Bonds.
Registration Books. The Paying Agent will keep or cause to be kept sufficient books for the registration and transfer of the Bonds (the “Registration Books”), which will at all times be open to inspection by the City upon reasonable notice; and, upon presentation for such purpose, the Paying Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the Bonds.
Transfer. Any Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation at the principal office of the Paying Agent, accompanied by delivery of a written instrument of transfer in a form approved by the Paying Agent, duly executed.
Whenever any Bond or Bonds are surrendered for transfer, the City will execute and the Paying Agent will authenticate and deliver a new Bond or Bonds, for a like aggregate principal amount of other authorized denominations of the same interest rate and maturity.
Exchange. Bonds may be exchanged at the principal office of the Paying Agent for a like aggregate principal amount of Bonds of the same series, interest rate and maturity. The City may require the payment by any Bond owner requesting any such transfer of any tax or other governmental charge required to be paid with respect to such transfer or exchange.
No transfer or exchange of Bonds shall be required to be made by the Paying Agent during the period from the Record Date (as defined in this Official Statement) next preceding each interest payment date to such interest payment date or after a notice of redemption shall have been mailed with respect to such Bond.
PLAN OF FINANCE
Purpose of Issue; Deposit of Bond Proceeds
A portion of the net proceeds of the Bonds will be used to pay certain costs of executing and delivering the Bonds. The remaining net proceeds of the Bonds will be deposited into a special account to be held by the City separate and apart from all other funds of the City (the “Project Fund”) and used to finance improvements to streets within the City and other projects permitted under the Authorization. See the caption “THE BONDS— Authority for Issuance.” Any amounts remaining on deposit in the Project Fund and not needed for the purposes thereof shall be withdrawn from the Project Fund and transferred to the Debt Service Fund (as such term is defined below), to be applied to pay the principal of and interest and premium, if any, on the Bonds.
All ad valorem taxes collected for payment of the Bonds will be deposited into a special account (the “Debt Service Fund”) established for the payment of the Bonds to be held by the County separate and apart from all other funds held by the County on behalf of the City. The Debt Service Fund was created by the Resolution specifically for payment of the Bonds and has been irrevocably pledged to the payment of principal of and interest on the Bonds when due pursuant to the Resolution. 9 4938-5081-9471.5
Sources and Uses of Funds
The estimated sources and uses of funds with respect to the Bonds will be applied as follows:
Sources of Funds(1)
Principal Amount of Bonds......................................................................................... $ Plus/Less Net Original Issue Premium/Discount.........................................................
Total Sources............................................................................................................ $ Uses of Funds(1)
Deposit to Project Fund ............................................................................................... $ Deposit to Debt Service Fund(2)...................................................................................
Costs of Issuance(3) ......................................................................................................
Total Uses ................................................................................................................ $ ____________________
(1) Rounded to the nearest dollar. Totals may not add due to rounding. (2) To be applied to pay interest on the Bonds through _____ 1, 20__. (3) Includes the Underwriter’s discount, Municipal Advisor fees, Bond Counsel and Disclosure Counsel fees, printing costs, rating agency fees and other related costs.
Source: City.
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DEBT SERVICE SCHEDULE
The following table shows the debt service schedule with respect to the Bonds (assuming no optional redemptions).
Year Ending
September 1 Principal Interest
Total
Debt Service
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Total $ $ $
____________________
Source: Underwriter.
SECURITY FOR THE BONDS
General
The Bonds are general obligations of the City. The Board of Supervisors of the County has the power and is obligated, and under the Resolution has been directed by the City, to levy and collect ad valorem taxes on behalf of the City without limitation as to rate or amount upon all property subject to taxation by the City (except certain property which is taxable at limited rates) in order to ensure the timely payment of debt service on the Bonds. Such taxes, when collected, will be deposited into the Debt Service Fund held by the County on behalf of the City, which has been irrevocably pledged to the payment of principal of and interest on the Bonds when due. Although the County is obligated to collect the ad valorem tax for the payment of the Bonds, the Bonds are not a debt of the County.
City property taxes are assessed and collected by the County in the same manner and at the same time, and in the same installments as other ad valorem taxes on real property, and will have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency, as do the other ad valorem taxes on real property.
The County has adopted the Teeter Plan, which is described under the caption “TAX BASE FOR PAYMENT OF BONDS—Alternative Method of Tax Apportionment—Teeter Plan.” The City Council adopted 11 4938-5081-9471.5
a resolution to opt into the Teeter Plan on February 17, 2015 and the County Board of Supervisors adopted a resolution on February 24, 2015 authorizing the City to opt into the County’s Teeter Plan, effective beginning in Fiscal Year 2015-16. As a result of the City’s participation in the Teeter Plan, since Fiscal Year 2015-16, the City has received all of the property taxes that are due and payable whether or not they are actually collected, and the County will retain any penalties and interest on delinquent taxes.
At the option of the City Council, other available funds of the City that are not restricted by law to specific uses may be used to pay debt service on the Bonds.
Factors Affecting Property Tax Security for the Bonds
The annual property tax rate for repayment of the Bonds will be based on the total assessed value of taxable property in the City and the scheduled debt service on the Bonds in each year, less any other lawfully available funds applied by the City for repayment of the Bonds. Fluctuations in the annual debt service on the Bonds, the assessed value of taxable property in the City and the availability of such other funds in any year may cause the annual property tax rate applicable to the Bonds to fluctuate. Issuance by the City of additional authorized bonds payable from ad valorem property taxes may cause the overall property tax rate to increase.
Discussed below are certain factors that may affect the City’s ability to levy and collect sufficient taxes to pay scheduled debt service on the Bonds each year.
Total Assessed Value of Taxable Property in the City. The greater the assessed value of taxable property in the City, the lower the tax rate necessary to generate taxes sufficient to pay scheduled debt service on bonds. The total assessed valuation of taxable property in the City in Fiscal Year 2025-26 is approximately $2,456,475,342. During economic downturns, declining real estate values, increased foreclosures and increases in requests submitted to the County tax assessor for reductions in assessed value have generally caused a reduction in the assessed value of some properties in the City. See the captions “TAX BASE FOR PAYMENT OF BONDS—Assessed Valuation” and “TAX BASE FOR PAYMENT OF BONDS—Appeals of Assessed Value” below.
Natural Disasters. Natural forces can affect the assessed value of taxable property in the City.
The City is located in a seismically active region, and damage from an earthquake in or near the City could cause moderate to extensive or total damage to taxable property. Other natural or man-made disasters, such as flood, fire, drought, toxic dumping, erosion, rising sea levels, civil unrest or acts of terrorism, could also cause a reduction in the assessed value of taxable property within the City.
When wildfires scorch land, they can destroy vegetation on mountains and hillsides. As a result, when heavy rain falls in the winter, there is nothing to stop the rain from penetrating directly into the soil. In addition, waxy compounds in plants and soil that are released during fires create a natural barrier in the soil that prevents rainwater from seeping deep into the ground. The result is erosion, mudslides and excess water running off the hillsides often causing flash flooding.
In addition, the City is located along the State’s Pacific Ocean coast and could be vulnerable to sea level rise as a result of climate change or storm surges and to tsunami events. The City maintains a Climate Action Plan, which is intended to measure and provide a roadmap to reduce the City’s greenhouse gas emissions and mitigate and develop adaption strategies with respect to climate change. Adaption strategies in the Climate Action Plan include collaborations with public safety service providers, addressing water supply threats and making the City’s infrastructure more resilient to extreme climate-related events.
Any combination of the foregoing factors can result in damage to property and, consequently, a reduction in assessed values.
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Hazardous Substances. A condition that could result in a reduction in the assessed value of property is the discovery of a hazardous substance which would limit the beneficial use of taxable property within the City. In general, the owners and operators of a property may be required by law to remedy conditions of the property relating to releases or threatened releases of hazardous substances. The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws, but State laws with regard to hazardous substances are also stringent and similar in effect. Under many of these laws, the owner or operator may be required to remedy a hazardous substance condition of property whether or not the owner or operator has anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the property within the City be affected by a hazardous substance, could be to reduce the marketability and value of such property by the costs of remedying the condition, because the purchaser, upon becoming owner, will become obligated to remedy the condition just as is the seller.
The City has not independently verified, but is not aware of, the presence of any hazardous substances on properties in the City. Hazardous substance liabilities may arise in the future with respect to any of the property in the City resulting from the existence, currently, of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Additionally, such liabilities may arise from the method of handling such substance.
These possibilities could have a material adverse effect on the value of a parcel.
Other Factors. Economic and market forces, such as a downturn in the State’s economy generally or a relocation out of the City or financial difficulty or bankruptcy by one or more major property taxpayers or employers of City residents, can also affect assessed values, particularly as these forces might reverberate in the residential housing and commercial property markets. In addition, assessed values can be reduced through the reclassification of taxable property to a class exempt from taxation, whether by ownership or use (such as exemptions for property owned by State and local agencies and property used for qualified educational, hospital, charitable or religious purposes).
The City expects that any future growth in the net assessed valuation of taxable property in the City will be dependent on new construction and development projects within the City.
Concentration of Taxable Property Ownership. The more property (by assessed value) owned by any single assessee, the more exposure of tax collections to weakness in that taxpayer’s financial situation and ability or willingness to pay property taxes. For Fiscal Year 2025-26, no single assessee owned more than 0.64% of the total taxable property in the City. See the caption “TAX BASE FOR PAYMENT OF BONDS—Major Taxpayers” below.
Property Tax Rates. Another factor that may affect the ability of taxpayers to pay additional taxes pledged to the repayment of the Bonds is the cumulative rate of tax. The total tax rate per $100 of assessed value (including the basic Countywide 1% rate required by statute) is discussed below under the caption “TAX BASE FOR PAYMENT OF BONDS—Tax Rates.”
Additional Debt; Authorized but Unissued Bonds. Issuance of additional authorized bonds can cause the overall property tax rate to increase. Following the issuance of the Bonds, the City will have authorization to issue up to $5,000,000* in additional aggregate principal amount of general obligation bonds pursuant to the Authorization, which would also be payable from ad valorem property taxes. See the captions “THE BONDS— Authority for Issuance” above and “—City General Obligation Bonded Debt Structure” below. In addition, the City could propose further bond measures to the voters from time to time to help meet its future capital needs. * Preliminary; subject to change.
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Debt Service Fund; Investment of Funds
All ad valorem taxes collected for payment of the Bonds will be deposited into the Debt Service Fund, which has been irrevocably pledged for the payment of principal of and interest on the Bonds when due pursuant to the Resolution. Any amounts remaining on deposit in the Project Fund and not needed for the purposes thereof shall be withdrawn from the Project Fund and transferred to the Debt Service Fund to be applied to pay the principal of and interest and premium, if any, on the Bonds. The County will transfer amounts in the Debt Service Fund, to the extent necessary to pay the principal of and interest on the Bonds as the same become due and payable, to the Paying Agent as required to pay the principal of and interest and premium, if any, on the Bonds.
The Project Fund is expected to be invested in any investment of the City in which moneys in the General Fund of the City are invested. The Debt Service Fund is expected to be invested in the County’s Treasury Investment Pool. All interest earned on the Project Fund and Debt Service Fund, respectively, will be retained in the same account to which is accrued. Appendix F for additional information regarding the investment of the Debt Service Fund.
If, after payment in full of the Bonds, any amounts remain on deposit in the Debt Service Fund, the County will transfer such amounts to the City and the City will deposit such amounts in the Project Fund. If the Project Fund is closed, the City will transfer such amounts to its Street Maintenance Fund and use such amounts solely for costs of acquisition or improvement of real property for which the Bond proceeds are authorized to be expended under the Authorization.
Statutory Lien
On July 13, 2015, Governor Jerry Brown signed new legislation (“SB 222”) into law that improves the security for general obligation bonds issued in the State, including the Bonds. SB 222, which went into effect on January 1, 2016, provides that general obligation bonds issued by a local agency, including cities, shall be secured by a “statutory lien” on all revenues received pursuant to the levy and collection of the ad valorem property tax. Under the federal bankruptcy code, a statutory lien is a lien that arises solely by statute and not as a result of the parties’ agreement. Previously, the governing statutes relating to the issuance of general obligation bonds by cities required that all taxes levied and collected be used for the payment of principal and interest on general obligation bonds and for no other purpose, but did not provide for a statutory lien.
City General Obligation Bonded Debt Structure
The City received the Authorization at an election held on November 4, 2014, by an affirmative vote of
68.02% of the eligible voters within the City to issue up to $48,000,000 of general obligation bonds. On March 25, 2015, the City issued and sold the 2015 GO Bonds in the aggregate principal amount of $5,000,000, of which $3,595,000 is currently outstanding. On March 30, 2016, the City issued and sold the 2016 GO Bonds in the aggregate principal amount of $8,000,000, of which $5,940,000 is currently outstanding. On December 20, 2017, the City issued and sold the 2017 GO Bonds in the aggregate principal amount of $15,000,000, of which $12,265,000 is currently outstanding. On January 26, 2022, the City issued and sold the 2022 GO Bonds in the aggregate principal amount of $10,000,000, all of which is currently outstanding.
The Bonds are the fifth series of bonds issued under the Authorization. Immediately following the issuance of the Bonds, $5,000,000* of the Authorization will remain available for future issuance. Proceeds of bonds issued pursuant to the Authorization may be used, generally, for projects that improve and repair streets, increase street safety and promote economic and job growth. * Preliminary; subject to change.
14 4938-5081-9471.5
The following table summarizes the City’s annual debt service requirements for all outstanding general obligation bonds of the City:
15 4938-5081-9471.5
City of Grover Beach
General Obligation Bond Debt Service Schedule
Year Ending
September 1
2015
GO Bonds
2016
GO Bonds
2017
GO Bonds
2022
GO Bonds
2026
GO Bonds
Total
Debt Service
2026 $ 314,181.25 $ 478,343.75 $ 908,350.00 $ 378,800.00 $[__ 2027 315,181.25 479,093.75 909,850.00 378,350.00
2028 315,681.25 477,093.75 910,100.00 377,900.00
2029 315,681.25 479,693.75 909,100.00 377,450.00
2030 314,381.25 474,943.75 911,850.00 381,850.00
2031 317,931.25 475,043.75 908,100.00 381,050.00
2032 316,181.25 479,843.75 908,100.00 380,250.00
2033 313,993.75 479,193.75 912,900.00 374,450.00
2034 316,650.00 478,243.75 908,100.00 378,850.00
2035 318,381.25 476,993.75 912,850.00 373,050.00
2036 314,775.00 475,443.75 911,850.00 377,450.00
2037 316,000.00 478,593.75 910,250.00 376,650.00
2038 315,200.00 476,293.75 908,050.00 380,850.00
2039 319,000.00 478,168.75 910,250.00 374,600.00
2040 317,200.00 479,575.00 911,700.00 373,600.00
2041 - 474,950.00 912,400.00 692,600.00
2042 - - 912,350.00 1,170,600.00
2043 - - 911,550.00 1,172,200.00
2044 - - - 2,082,400.00
2045 - - - 2,079,800.00
2046 - - - 2,079,400.00
2047 - - - 2,080,600.00
Total $4,704,127.50 $7,641,512.50 $16,387,700.00 $17,022,750.00 $__] ___________________
Source: City.
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TAX BASE FOR PAYMENT OF BONDS
Property Tax Collection Procedures
In California, property which is subject to ad valorem taxes is classified as “secured” or “unsecured.” The “secured roll” is that part of the assessment roll containing State-assessed public utility property and property, the taxes on which are a lien on real property sufficient, in the opinion of the county assessor, to secure payment of the taxes. A tax levied on unsecured property does not become a lien against such unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens arising pursuant to State law on such secured property, regardless of the time of the creation of the other liens. Secured and unsecured properties are entered separately on the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property.
Property taxes on the secured roll are due in two installments, on November 1 and February 1 of each fiscal year. If unpaid, such taxes become delinquent after December 10 and April 10, respectively, and a 10% penalty attaches to any delinquent payment. In addition, property on the secured roll with respect to which taxes are delinquent is declared tax-defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1.5% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to sale by the County, which is the exclusive means of compelling the payment of such unpaid taxes.
Property taxes are levied for each fiscal year on taxable real and personal property situated in the taxing jurisdiction as of the preceding January 1. A bill enacted in 1983, SB 813 (Statutes of 1983, Chapter 498), however, provided for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Thus, this legislation eliminated delays in the realization of increased property taxes from new assessments. As amended, SB 813 provided increased revenue to taxing jurisdictions to the extent that supplemental assessments of new construction or changes of ownership occur subsequent to the January 1 lien date and result in increased assessed value.
Property taxes on the unsecured roll are due on the January 1 lien date and become delinquent, if unpaid on the following August 31. A 10% penalty is also attached to delinquent taxes in respect of property on the unsecured roll, and further, an additional penalty of 1.5% per month accrues with respect to such taxes beginning the first day of the third month following the delinquency date. The taxing authority has four ways of collecting unsecured personal property taxes: (i) a civil action against the taxpayer; (ii) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (iii) filing a certificate of delinquency for record in the county recorder’s office, in order to obtain a lien on certain property of the taxpayer; and (iv) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee.
Taxation of State-Assessed Utility Property
Some amount of property tax revenue of the City is derived from utility property which is considered part of a utility system with components located in many taxing jurisdictions, known as unitary property. Under the State Constitution, such property is assessed by the State Board of Equalization (“SBE”) as part of a “going concern” rather than as individual pieces of real or personal property. Such State-assessed property is allocated to the counties by the SBE, taxed at special county-wide rates, and the tax revenues from the assessment of such property are distributed to taxing jurisdictions (including the City) according to statutory formulae generally based on the distribution of taxes in the prior year.
The California electric utility industry has been undergoing significant changes in its structure and in the way in which components of the industry are regulated and owned. Sale of electric generation assets to largely unregulated, nonutility companies may affect how those assets are assessed, and which local agencies 17 4938-5081-9471.5
are to receive the property taxes. The City is unable to predict the impact of these changes on its utility property tax revenues, whether legislation may be proposed or adopted in response to industry restructuring or whether any future litigation may affect ownership of utility assets or the State’s methods of assessing utility property and the allocation of assessed value to local taxing agencies, including the City.
Assessed Valuation
Assessed Valuation History. The following is a table summarizing the historical and current assessed valuation of the taxable property in the City.
TABLE 1
City of Grover Beach
Assessed Valuations of All Taxable Property
Last Ten Fiscal Years
Local Secured
Property
Utility Property
(Non-Unitary Only) Unsecured Property Total
2016-17 $1,507,554,753 $307,339 $40,884,371 $1,548,746,463 2017-18 1,589,746,399 311,781 37,279,480 1,627,337,660
2018-19 1,691,583,881 295,068 39,046,792 1,730,925,741
2019-20 1,774,051,571 295,699 42,274,382 1,816,621,652
2020-21 1,855,486,235 290,500 45,734,135 1,901,510,870
2021-22 1,934,674,078 285,642 27,374,959 1,962,334,679
2022-23 2,060,810,502 388,172 27,870,291 2,089,068,965
2023-24 2,173,954,240 381,386 30,481,096 2,204,816,722
2024-25 2,287,429,443 363,448 35,497,250 2,323,290,141
2025-26 2,415,862,309 404,447 40,208,586 2,456,475,342
____________________
Source: California Municipal Statistics, Inc.
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Assessed Valuation by Land Use. The following table shows the assessed valuation by land use of parcels in the City for Fiscal Year 2025-26. As shown, the majority of land in the City is used for residential purposes.
TABLE 2
City of Grover Beach
Assessed Valuation and Parcels by Land Use
Fiscal Year 2025-26(1)
Fiscal Year 2025-26
Assessed Valuation*
% of
Total
Number of
Parcels
% of
Total
Non-Residential:
Agricultural/Rural $ 1,684,287 0.07% 2 0.04%
Commercial/Office 217,342,904 9.00 315 6.09
Vacant Commercial 24,462,923 1.01 41 0.79
Industrial 86,267,821 3.57 131 2.53
Vacant Industrial 13,838,558 0.57 26 0.50
Government/Social/Institutional 4,372,011 0.18 64 1.24
Miscellaneous 9,051,216 0.37 51 0.99
Subtotal Non-Residential $ 357,019,720 14.78% 630 12.19% Residential:
Single Family Residence $1,650,535,193 68.32% 3,532 68.32% Condominium Units 61,234,536 2.53 293 5.67
Mobile Home 14,997,541 0.62 173 3.35
Mobile Home Park 4,610,721 0.19 5 0.10
2-4 Residential Units 212,729,375 8.81 391 7.56
5+ Residential Units/Apartments 92,156,180 3.81 59 1.14 Vacant Residential 22,579,043 0.93 87 1.68
Subtotal Residential $2,058,842,589 85.22% 4,540 87.81% Total $2,415,862,309 100.00% 5,170 100.00%
____________________
* Local Secured Assessed Valuation; excluding tax-exempt property. (1) Totals may not add due to rounding.
Source: California Municipal Statistics, Inc.
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Assessed Valuation of Single Family Residential Parcels. The following table shows a breakdown of the assessed valuations of improved single family residential parcels in the City, according to assessed valuation.
TABLE 3
City of Grover Beach
Per Parcel Assessed Valuation of Single Family Homes
Fiscal Year 2025-26(1)
Number of
Parcels
Fiscal Year
2025-26
Assessed Valuation
Average
Assessed
Valuation
Median
Assessed
Valuation
Single Family Residential 3,532 $1,650,535,193 $467,309 $454,881 Fiscal Year 2025-26 Assessed
Valuation
Number of
Parcels*
% of
Total
Cumulative
% of Total
Total
Valuation
% of
Total
Cumulative
% of Total
$0 - $49,999 62 1.76 1.76% $ 2,286,898 0.14% 0.14%
$50,000 - $99,999 103 2.92 4.67 7,537,361 0.46 0.60
$100,000 - $149,999 124 3.51 8.18 15,931,445 0.97 1.56
$150,000 - $199,999 215 6.09 14.27 38,275,668 2.32 3.88 $200,000 - $249,999 271 7.67 21.94 61,286,630 3.71 7.59 $250,000 - $299,999 280 7.93 29.87 76,768,440 4.65 12.24 $300,000 - $349,999 228 6.46 36.33 74,145,892 4.49 16.74 $350,000 - $399,999 222 6.29 42.61 83,571,227 5.06 21.80 $400,000 - $449,999 239 6.77 49.38 101,862,403 6.17 27.97 $450,000 - $499,999 231 6.54 55.92 110,108,514 6.67 34.64 $500,000 - $549,999 253 7.16 63.08 132,017,778 8.00 42.64 $550,000 - $599,999 224 6.34 69.42 128,420,220 7.78 50.42 $600,000 - $649,999 262 7.42 76.84 163,792,111 9.92 60.34 $650,000 - $699,999 185 5.24 82.08 124,519,112 7.54 67.90 $700,000 - $749,999 195 5.52 87.60 140,863,630 8.53 76.42 $750,000 - $799,999 129 3.65 91.25 99,921,725 6.05 82.48 $800,000 - $849,999 105 2.97 94.24 86,529,876 5.24 87.72 $850,000 - $899,999 59 1.67 95.90 51,571,804 3.13 90.84 $900,000 - $949,999 50 1.42 97.31 46,154,132 2.80 93.64 $950,000 - $999,999 31 0.88 98.19 30,182,015 1.83 95.47 $1,000,000 and greater 64 1.81 100.00% 74,788,312 4.53 100.00% 3,532 100.00% $1,650,535,193 100.00%
____________________
* Improved single family residential parcels. Excludes condominiums and parcels with multiple family units. (1) Totals may not add due to rounding.
Source: California Municipal Statistics, Inc.
Alternative Method of Tax Apportionment—Teeter Plan
The Board of Supervisors of the County has approved the implementation of the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the “Teeter Plan”), as provided for in Section 4701 et seq. of the California Revenue and Taxation Code. Under the Teeter Plan, the County apportions 100% of secured property taxes and assessments on an accrual basis when due (irrespective of actual collections) to participating local political subdivisions for which such county acts as the levying or collecting agency. Then, as of June 30 each year, the County advances the remaining current year ad valorem secured taxes and direct charges that are due and unpaid to all local agencies participating in the Teeter Plan. In return, the County 20 4938-5081-9471.5
receives and retains delinquent payments, penalties and interest collected that would have been due to the local agencies in the absence of the Teeter Plan. The City Council adopted a resolution to opt into the Teeter Plan on February 17, 2015 and the County Board of Supervisors adopted a resolution on February 24, 2015 authorizing the City to opt into the County’s Teeter Plan, effective in Fiscal Year 2015-16.
The property tax levies and collections for the City for the last ten Fiscal Years are shown in the following table:
TABLE 4
City of Grover Beach
Secured Tax Charges and Delinquencies
Last Ten Fiscal Years
Secured Tax
Charge*
Amount Delinquent
June 30**
% Delinquent
June 30**
2015-16 $2,095,240.12 $19,795.50 0.94%
2016-17 2,219,622.10 20,877.43 0.94
2017-18 2,333,876.58 22,521.18 0.96
2018-19 2,475,403.38 23,177.53 0.94
2019-20 2,566.559.70 42,140.76 1.64
2020-21 2,683,132.36 30,925.21 1.15
2021-22 2,771,153.09 29,934.48 1.08
2022-23 2,963,513.87 30,499.65 1.03
2023-24 3,123,976.15 40,268.90 1.29
2024-25 3,290,995.05 42,947.11 1.30
____________________
* 1% General Fund apportionment. ** Reflects County-wide delinquency rate. Because the City is on the Teeter Plan, the City receives 100% of the levy amount regardless of delinquencies.
Source: California Municipal Statistics, Inc.
The general obligation bond levies and collections for the City for the last ten Fiscal Years are shown in the following table.
21 4938-5081-9471.5
TABLE 5
City of Grover Beach
General Obligation Bond Levy and Delinquencies
Last Ten Fiscal Years
Secured Tax
Charge*
Amount Delinquent
June 30**
% Delinquent
June 30**
2015-16 $ 340,322.71 $ 2,651.19 0.78%
2016-17 513,551.08 3,953.11 0.77
2017-18 811,082.12 7,715.11 0.95
2018-19 1,427,699.83 14,913.66 1.04
2019-20 1,497,888.26 23,648.52 1.58
2020-21 1,565,264.41 19,782.91 1.26
2021-22 1,634,872.68 22,925.02 1.40
2022-23 1,950,450.51 22,017.75 1.13
2023-24 2,035,791.77 27,124.72 1.33
2024-25 2,054,965.95 27,162.88 1.32
____________________
* City’s General Obligation Bond Debt Service Levy.
** Because the City is on the Teeter Plan, the City receives 100% of the levy amount regardless of delinquencies.
Source: California Municipal Statistics, Inc.
Appeals of Assessed Value
There are two types of appeals of assessed values that could adversely impact property tax revenues within the City.
Appeals may be based on Proposition 8, which was approved by State voters in November 1978.
Proposition 8 requires that, for each January 1 lien date, the taxable value of real property must be the lesser of its base year value, annually adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution, or its full cash value, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value.
Under California law, property owners may apply for a Proposition 8 reduction of their property tax assessment by filing a written application, in the form prescribed by the SBE, with the County board of equalization or assessment appeals board. In most cases, the appeal is filed because the applicant believes that present market conditions (such as residential home prices) cause the property to be worth less than its current assessed value. Proposition 8 reductions may also be unilaterally applied by the County Assessor.
Any reduction in the assessment ultimately granted as a result of such appeal applies only to the year for which application is made and during which the written application was filed. Proposition 8 reductions are subject to yearly reappraisals and are adjusted back to their original values when market conditions improve.
Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA.
A second type of assessment appeal involves a challenge to the base year value of an assessed property.
Appeals for reduction in the base year value of an assessment, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. The base year is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date.
22 4938-5081-9471.5
The City cannot predict the changes in assessed values that might result from pending or future appeals by taxpayers. Any reduction in aggregate City assessed valuation due to appeals, as with any reduction in assessed valuation due to other causes, will cause the tax rate levied to repay the Bonds to increase accordingly, so that the fixed debt service on the Bonds (and other outstanding general obligation bonds, if any) may be paid.
Tax Rates
The table below shows historical property tax rates in a typical area within the City:
TABLE 6
City of Grover Beach
Typical Tax Rate Per $100 Assessed Valuation
(TRA 5-000(1)
)
Fiscal Year
2021-22
Fiscal Year
2022-23
Fiscal Year
2023-24
Fiscal Year
2024-25
Fiscal Year
2025-26
General Tax Rate 1.00000 1.00000 1.00000 1.00000 1.00000 State Water Project 0.00400 0.00400 0.00363 0.00365 0.00321 City of Grover Beach 0.08500 0.09500 0.09500 0.09000 0.08500 Lucia Mar Unified School District 0.05878 0.03950 0.03500 0.02800 0.04600 San Luis Obispo Community College District 0.01925 0.01925 0.01925 0.01750 0.01500 San Luis Obispo County Flood Zone 3 0.00600 0.00600 0.00600 0.00600 0.00400 Total Tax Rate 1.17303 1.16375 1.15888 1.14515 1.15321
____________________
(1) “TRA” stands for tax rate area, a defined geographic area which is designated to permit the levying of taxes for less than county- or city-wide special districts. The Fiscal Year 2025-26 assessed valuation of TRA 5-000 is $1,572,378,412 which is 64.01% of the City’s total assessed valuation.
Source: California Municipal Statistics, Inc.
23 4938-5081-9471.5
Major Taxpayers
The following table shows the 20 largest taxpayers in the City, as determined by the secured assessed valuation of property, in Fiscal Year 2025-26.
TABLE 7
City of Grover Beach
20 Largest Secured Taxpayers
Fiscal Year 2025-26(1)
Property Owner
Primary
Land Use
Fiscal Year 2025-26
Assessed Valuation
% of
Total*
1. Safeway Realty LLC Supermarket $ 15,404,927 0.64
2. Excel Grover Beach LP Hotel/Motel 13,238,925 0.55
3. Searidge LP Apartments 12,556,211 0.52
4. Siyaram LLC Hotel/Motel 11,991,826 0.50
5. California Fine Wire Co. Light Industrial 11,767,599 0.49
6. Grover Beach Ramona Garden
Apartments LLC
Apartments 6,897,852 0.29
7. Kaveh Zarrabian Shopping Center 6,630,000 0.27
8. Cleaver & Clark Commons LP Apartments 6,202,360 0.26
9. Vision to Life LLC Condominiums 6,054,345 0.25
10. Manfred G. Freutel, Trustee Apartments 5,723,508 0.24
11. Prime Capital Venture LLC Warehouse 5,545,798 0.23
12. GB Encore LLC Condominiums 5,485,745 0.23
13. Phillip G. Korte Apartments 5,272,810 0.22
14. GB Towers LLC Condominiums 4,514,667 0.19
15. David W. Stearns, Trustee Restaurant 4,477,743 0.19
16. Cal Coast Properties Shopping Center 4,318,239 0.18
17. 998 & 1030 Partners LLC Warehouse 4,255,702 0.18
18. Beach Cities Enterprises LLC Automotive Service 4,248,058 0.18
19. 1030 Huston LLC Warehouse 4,244,832 0.18
20. Beach Place Enterprises LLC Commercial/Residential 4,221,780 0.17 Total $143,052,927 5.92%
____________________
* Fiscal Year 2025-26 Local Secured Assessed Valuation: $2,415,862,309. (1) Totals may not add due to rounding.
Source: California Municipal Statistics, Inc.
Direct and Overlapping Debt
Set forth below is a direct and overlapping debt report (the “Debt Report”) prepared by California Municipal Statistics, Inc. and effective April 1, 2026. The Debt Report is included for general information purposes only. The City has not reviewed the Debt Report for completeness or accuracy and makes no representation in connection therewith.
The Debt Report generally includes long-term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of the City in whole or in part. Such long-term obligations generally are not payable from revenues of the City (except as indicated) nor are they necessarily obligations secured by land within the City. In many cases, long-term obligations issued by a public agency are payable only from the general fund or other revenues of such public agency. 24 4938-5081-9471.5
The contents of the Debt Report are as follows: (a) the first column indicates the public agencies which have outstanding debt as of the date of the Debt Report and whose territory overlaps the City; (b) the second column shows the percentage that the City’s assessed valuation represents of the total assessed valuation of each public agency identified in the first column; and (c) the third column is an apportionment of the dollar amount of each public agency’s outstanding debt to property in the City, as determined by multiplying the total outstanding debt of each agency by the percentage of the City’s assessed valuation represented in the second column.
TABLE 8
City of Grover Beach
Statement of Direct and Overlapping Bonded Debt
(As of April 1, 2026)
Fiscal Year 2025-26 Assessed Valuation: $2,456,475,342
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt as of 4/1/26 San Luis Obispo County Flood Control and Water Conservation District, Zone No. 3 18.597% $ 688,089
San Luis Obispo Community College District 3.124 5,857,188 Lucia Mar Unified School District 11.633 21,151,098
City of Grover Beach 100.000 31,800,000(1)
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $59,496,375 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Luis Obispo County Certificates of Participation 3.137% $ 2,323,279 San Luis Obispo County Pension Obligation Bonds 3.137 493,699 Lucia Mar Unified School District Certificates of Participation 11.633 1,330,234 City of Grover Beach General Fund Obligations 100.000 508,270(2) TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 4,655,482 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $ 2,200,000 COMBINED TOTAL DEBT $66,351,857
Ratios to Fiscal Year 2025-26 Assessed Valuation:
Direct Debt ($31,800) 1.29%
Total Direct and Overlapping Tax and Assessment Debt 2.42% Combined Direct Debt ($32,308,270) 1.32%
Combined Total Debt 2.70%
Ratios to Redevelopment Incremental Valuation ($367,993,000):
Total Overlapping Tax Increment Debt 0.60%
____________________
(1) Excludes the Bonds. (2) City’s share of San Luis Obispo County 2020 Lease Revenue Bonds. (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Source: California Municipal Statistics, Inc.
CONSTITUTIONAL AND STATUTORY PROVISIONS
AFFECTING CITY REVENUES AND APPROPRIATIONS
The principal of and interest on the Bonds are payable from the proceeds of an ad valorem tax levied by the County for the payment thereof. See the caption “SECURITY FOR THE BONDS.” Articles XIIIA, XIIIB, XIIIC and XIIID of the State Constitution and Propositions 22, 26, 62, 111 and 218, and certain other 25 4938-5081-9471.5
provisions of law discussed below, affect the ability of the County to levy taxes and the ability of the City to spend tax proceeds for operating and other purposes. The taxes levied by the County for payment of the Bonds were approved by the voters of the City in compliance with Article XIIIA, Article XIIIC of the State Constitution and other applicable laws.
Article XIIIA of the State Constitution
Article XIIIA (“Article XIIIA”) of the State Constitution limits the amount of ad valorem property taxes on real property to 1% of “full cash value” as determined by the county assessor. Article XIIIA defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 1975-76 bill under “full cash value,” or thereafter, the appraised value of real property when purchased, newly constructed or a change in ownership has occurred after the 1975 assessment,” subject to exemptions in certain circumstances of property transfer or reconstruction. Determined in this manner, the full cash value is also referred to as the “base year value.” The full cash value is subject to annual adjustment to reflect increases, not to exceed 2% for any year, or decreases in the consumer price index or comparable local data, or to reflect reductions in property value caused by damage, destruction or other factors, including a general economic downturn.
Article XIIIA has been amended to allow for temporary reductions of assessed value in instances where the fair market value of real property falls below the adjusted base year value described above. Proposition 8, which approved by the voters in November 1978, provides for the enrollment of the lesser of the base year value or the market value of real property, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a similar decline. In these instances, the market value is required to be reviewed annually until the market value exceeds the base year value.
Reductions in assessed value could result in a corresponding increase in the annual tax rate levied by the County to pay debt service on the Bonds. See the caption “SECURITY FOR THE BONDS” and “TAX BASE FOR PAYMENT OF BONDS.”
Article XIIIA requires a vote of two-thirds or more of the qualified electorate of a city, county, special district or other public agency to impose special taxes, while totally precluding the imposition of any additional ad valorem, sales or transaction tax on real property. Article XIIIA exempts from the 1% tax limitation any taxes above that level required to pay debt service: (a) on any indebtedness approved by the voters prior to July 1, 1978; (b) as the result of an amendment approved by State voters on June 3, 1986, on any bonded indebtedness approved by two-thirds of the votes cast by the voters for the acquisition or improvement of real property on or after July 1, 1978; or (c) bonded indebtedness incurred by a school district or community college district for the construction, reconstruction, rehabilitation or replacement of school facilities or the acquisition or lease of real property for school facilities, approved by 55% or more of the votes cast on the proposition, but only if certain accountability measures are included in the proposition. In addition, Article XIIIA requires the approval of twothirds of all members of the State legislature to change any State taxes for the purpose of increasing tax revenues.
Legislation Implementing Article XIIIA
Legislation has been enacted and amended a number of times since 1978 to implement Article XIIIA.
Under current law, local agencies are no longer permitted to levy directly any property tax (except to pay voterapproved indebtedness). The 1% property tax is automatically levied by the county and distributed according to a formula among taxing agencies. The formula apportions the tax roughly in proportion to the relative shares of taxes levied prior to 1979.
Increases of assessed valuation resulting from reappraisals of property due to new construction, change in ownership or from the annual adjustment not to exceed 2% are allocated among the various jurisdictions in the “taxing area” based upon their respective “situs.” Any such allocation made to a local agency continues as part of its allocation in future years.
26 4938-5081-9471.5
All taxable property value included in this Official Statement is shown at 100% of taxable value (unless noted differently) and all tax rates reflect the $1 per $100 of taxable value.
Both the United States Supreme Court and the California State Supreme Court have upheld the general validity of Article XIIIA.
Article XIIIB of the State Constitution
Article XIIIB (“Article XIIIB”) of the State Constitution, as subsequently amended by Propositions 98 and 111, respectively, limits the annual appropriations of the State and of any city, county, school district, authority or other political subdivision of the State to the level of appropriations of that particular governmental entity for the prior fiscal year, as adjusted for changes in the cost of living and in population and for transfers in the financial responsibility for providing services and for certain declared emergencies. For fiscal years beginning on or after July 1, 1990, the appropriations limit of each entity of government shall be the appropriations limit for the 1986-87 fiscal year adjusted for the changes made from that fiscal year pursuant to the provisions of Article XIIIB, as amended.
The appropriations of an entity of local government that are subject to Article XIIIB limitations include the proceeds of taxes levied by or for that entity and the proceeds of certain State subventions to that entity. “Proceeds of taxes” include, but are not limited to, all tax revenues and the proceeds to the entity from:
(a) regulatory licenses, user charges and user fees (but only to the extent that these proceeds exceed the reasonable costs in providing the regulation, product or service); and (b) the investment of tax revenues.
Appropriations subject to limitation do not include: (i) refunds of taxes; (ii) appropriations for debt service such as the Bonds; (iii) appropriations required to comply with certain mandates of the courts or the federal government; (iv) appropriations of certain special districts; (v) appropriations for all qualified capital outlay projects as defined by the State Legislature; (vi) appropriations derived from certain fuel and vehicle taxes; and (vii) appropriations derived from certain taxes on tobacco products.
Article XIIIB includes a requirement that all revenues received by an entity of government other than the State in a fiscal year and in the fiscal year immediately following it in excess of the amount permitted to be appropriated during that fiscal year and the fiscal year immediately following it shall be returned by a revision of tax rates or fee schedules within the next two subsequent fiscal years.
The City has never exceeded its appropriations limit. Because the issuance of the Bonds has been approved by the voters, the tax levy which is required to pay debt service on the Bonds is not subject to the limitations of Article XIIIB.
Articles XIIIC and XIIID of the State Constitution
On November 5, 1996, the voters of the State approved Proposition 218 (“Proposition 218”), known as the “Right to Vote on Taxes Act.” Proposition 218 added to the California Constitution Articles XIIIC and XIIID (respectively, “Article XIIIC” and “Article XIIID”) and contains a number of interrelated provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges.
Proposition 218 does not affect the levy and collection of taxes for voter-approved debt. However, Proposition 218 affects the City’s finances in other ways. Article XIIIC requires that all new local taxes be submitted to the electorate for approval before such taxes become effective. Taxes for general governmental purposes of the City require a majority vote and taxes for specific purposes require a two-thirds vote. Under Proposition 218, the City can only continue to collect taxes that were imposed after January 1, 1995 if voters subsequently approved such taxes by November 6, 1998. All of the City’s local taxes subject to such approval have been either reauthorized in accordance with Proposition 218 or discontinued. The voter approval requirements of Article XIIIC reduce the City’s flexibility to manage fiscal problems through new, extended or increased taxes. No assurance can be given that the City will be able to raise taxes in the future to meet increased expenditure requirements.
27 4938-5081-9471.5
Proposition 218 also provides that no tax, assessment, fee or charge may be assessed by any agency upon any parcel of property or upon any person as an incident of property ownership except: (a) the ad valorem property tax imposed pursuant to Articles XIII and XIIIA of the State Constitution; (b) any special tax receiving a two-thirds vote pursuant to the State Constitution; and (c) assessments, fees and charges for property-related services as provided in Proposition 218. Proposition 218 then goes on to add voter requirements for assessments and fees and charges imposed as an incident of property ownership, other than fees and charges for sewer, water and refuse collection services. In addition, all assessments and fees and charges imposed as an incident of property ownership, including sewer, water and refuse collection services, are subjected to various additional procedures, such as hearings and stricter and more individualized benefit requirements and findings.
Proposition 218 also extends the initiative power to reducing or repealing any local taxes, assessments, fees and charges. This extension of the initiative power is not limited to taxes imposed on or after November 6, 1996, the effective date of Proposition 218, and could result in retroactive repeal or reduction of any existing taxes, assessments, fees and charges, subject to overriding federal constitutional principles relating to the impairments of contracts. Legislation implementing Proposition 218 provides that the initiative power provided for in Proposition 218 “shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after (the effective date of Proposition 218) assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights” protected by the United States Constitution. However, no assurance can be given that the voters of the City will not, in the future, approve an initiative which reduces or repeals local taxes, assessments, fees or charges that currently are deposited into the City’s General Fund.
The State Constitution and the laws of the State impose a duty on the Board of Supervisors of the County to levy a property tax sufficient to pay debt service coming due with respect to the City’s general obligation bonds in each year. The initiative power cannot be used to reduce or repeal the authority and obligation to levy such taxes which are pledged as security for payment of the City’s general obligation bonds or to otherwise interfere with performance of the duty of the City with respect to such taxes which are pledged as security for payment of those bonds.
Article XIIID contains several provisions making it generally more difficult for local agencies, such as the City, to levy and maintain “assessments” (as defined in Article XIIID) for municipal services and programs.
These provisions include, among other things: (i) a prohibition against assessments which exceed the reasonable cost of the proportional special benefit conferred on a parcel; (ii) a requirement that assessments must confer a “special benefit,” as defined in Article XIIID, over and above any general benefits conferred; (iii) a majority protest procedure for assessments which involves the mailing of notice and a ballot to the record owner of each affected parcel, a public hearing and the tabulation of ballots weighted according to the proportional financial obligation of the affected party; and (iv) a prohibition against fees and charges which are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. If the City is unable to continue to collect these revenues, the services and programs funded with these revenues would have to be curtailed and/or the City’s General Fund might have to be used to support them.
The City is unable to predict whether or not in the future it will be able to continue all existing services and programs funded by fees, charges and assessments in light of Proposition 218 or, if these services and programs are continued, which amounts, if any, would be used from the City’s General Fund to continue to support these activities. Reductions in service levels could adversely affect the value of property within the City.
Proposition 62
Proposition 62 was adopted by the voters at the November 4, 1986, general election and: (a) requires that any new or higher taxes for general governmental purposes imposed by local governmental entities such as the City be approved by a two-thirds vote of the governmental entity’s legislative body and by a majority vote of the voters of the governmental entity voting in an election on the tax; (b) requires that any special tax (defined 28 4938-5081-9471.5
as taxes levied for other than general governmental purposes) imposed by a local governmental entity be approved by a two-thirds vote of the voters of the governmental entity voting in an election on the tax; (c) restricts the use of revenues from a special tax to the purposes or for the service for which the special tax was imposed; (d) prohibits the imposition of ad valorem taxes on real property by local governmental entities except as permitted by Article XIIIA; (e) prohibits the imposition of transaction taxes and sales taxes on the sale of real property by local governmental entities; and (f) requires that any tax imposed by a local governmental entity on or after August 1, 1985, be ratified by a majority vote of the voters voting in an election on the tax within two years of the adoption of the initiative or be terminated by November 15, 1988.
In Santa Clara County Local Transportation Authority v. Guardino, 11 Cal. 4th 220 (1995) (the “Santa Clara decision”), the California Supreme Court upheld a Court of Appeal decision invalidating a one-half cent countywide sales tax for transportation purposes levied by a local transportation authority. The California Supreme Court based its decision on the failure of the authority to obtain a two-thirds vote for the levy of a “special tax” as required by Proposition 62. The Santa Clara decision did not address the question of whether it should be applied retroactively. In McBrearty v. City of Brawley, 59 Cal. App. 4th 1441 (1997), the Court of Appeal, Fourth District, concluded that the Santa Clara decision is to be applied retroactively to require voter approval of taxes enacted after the adoption of Proposition 62 but before the Santa Clara decision.
Certain matters regarding Proposition 62 were not addressed in the Santa Clara decision, such as what remedies exist for taxpayers subject to a tax not in compliance with Proposition 62, and whether the decision applies to charter cities. The City has not experienced any substantive adverse financial impact as a result of the passage of this initiative, much of which was subsumed by Proposition 218.
Proposition 22
Proposition 22 (“Proposition 22”) which was approved by California voters in November 2010, prohibits the State, even during a period of severe fiscal hardship, from delaying the distribution of tax revenues for transportation, redevelopment or local government projects and services and prohibits fuel tax revenues from being loaned for cash-flow or budget balancing purposes to the State General Fund or any other State fund. In addition, Proposition 22 generally eliminates the State’s authority to temporarily shift property taxes from cities, counties and special districts to schools or temporarily increase a school and community college district’s share of property tax revenues, prohibits the State from borrowing or redirecting redevelopment property tax revenues or requiring increased pass-through payments thereof and prohibits the State from reallocating vehicle license fee revenues to pay for State-imposed mandates. In addition, Proposition 22 requires a two-thirds vote of each house of the State Legislature and a public hearing process to be conducted in order to change the amount of fuel excise tax revenues shared with cities and counties. While Proposition 22 will not change overall State and local government costs or revenues by the express terms thereof, it will cause the State to adopt alternative actions to address its fiscal and policy objectives.
Proposition 26
On November 2, 2010, the voters approved Proposition 26 (“Proposition 26”), revising certain provisions of Articles XIIIA and XIIIC of the State Constitution. Proposition 26 re-categorizes many State and local fees as taxes, requires local governments to obtain two-thirds voter approval for taxes levied by local governments and requires the State to obtain the approval of two-thirds of both houses of the State Legislature to approve State laws that increase taxes. Furthermore, pursuant to Proposition 26, any increase in a fee beyond the amount needed to provide the specific service or benefit is deemed to be a tax and the approval thereof will require a two-thirds vote. In addition, for State-imposed charges, any tax or fee adopted after January 1, 2010 with a majority vote which would have required a two-thirds vote if Proposition 26 were effective at the time of such adoption is repealed as of November 2011 absent the re-adoption by the requisite two-thirds vote.
Proposition 26 amends Article XIIIC of the State Constitution to state that a “tax” means a levy, charge or exaction of any kind imposed by a local government, except: (a) a charge imposed for a specific benefit 29 4938-5081-9471.5
conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (b) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (c) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (d) a charge imposed for entrance to or use of local government property or the purchase rental or lease of local government property; (e) a fine, penalty or other monetary charge imposed by the judicial branch of government or a local government as a result of a violation of law, including late payment fees, fees imposed under administrative citation ordinances, parking violations, etc.; (f) a charge imposed as a condition of property development; or (g) assessments and property-related fees imposed in accordance with the provisions of Proposition 218. Fees, charges and payments that are made pursuant to a voluntary contract that are not “imposed by a local government” are not considered taxes and are not covered by Proposition 26.
Proposition 26 applies to any levy, charge or exaction imposed, increased, or extended by local government on or after November 3, 2010. Accordingly, fees adopted prior to that date are not subject to the measure until they are increased or extended or if it is determined that an exemption applies.
If the local government specifies how the funds from a proposed local tax are to be used, the approval will be subject to a two-thirds voter requirement. If the local government does not specify how the funds from a proposed local tax are to be used, the approval will be subject to a 50% voter requirement. Proposed local government fees that are not subject to Proposition 26 are subject to the approval of a majority of the governing body. In general, proposed property charges will be subject to a majority vote of approval by the governing body although certain proposed property charges will also require approval by a majority of property owners.
Proposition 26 provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.
Future Initiatives and Changes in Law
Articles XIIIA, XIIIB, XIIIC and XIIID and Propositions 22, 26, 62, 98, 111 and 218 were each adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time other initiative measures could be adopted, further affecting revenues of the City or the City’s ability to expend revenues. The nature and impact of these measures cannot be anticipated by the City.
On April 25, 2013, the California Supreme Court in McWilliams v. City of Long Beach (April 25, 2013, No. S202037), held that the claims provisions of the Government Claims Act (California Government Code Section 900 et seq.) govern local tax and fee refund actions (absent another State statue governing the issue), and that local ordinances were without effect. The effect of the McWilliams case is that local governments could face class actions over disputes involving taxes and fees. Such cases could expose local governments to significant refund claims in the future. The City cannot predict whether any such class claims will be filed against it in the future, the outcome of any such claim or its impact on the City.
See the section entitled “CITY FINANCES—State Budget and its Impact on the City” in Appendix A for information about the State’s fiscal year 2025-26 budget. 30 4938-5081-9471.5
TAX MATTERS
General Matters
In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, interest on the Bonds (including any original issue discount properly allocable to the owner of a Bond) is excludable from gross income for federal income tax purposes and is not a specific preference item for purposes of the federal alternative minimum tax imposed on individuals. The opinion described above assumes the accuracy of certain representations and compliance by the City with covenants designed to satisfy the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be met subsequent to the issuance of the Bonds. Failure to comply with such requirements could cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The City has covenanted to comply with such requirements. Bond Counsel has expressed no opinion regarding other federal tax consequences arising with respect to the Bonds. Interest on the Bonds may affect the federal alternative minimum tax imposed on certain corporations.
The accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the owners of the Bonds. The extent of these other tax consequences will depend on such owners’ particular tax status and other items of income or deduction. Bond Counsel has expressed no opinion regarding any such consequences.
Purchasers of the Bonds, particularly purchasers that are corporations (including S corporations, foreign corporations operating branches in the United States of America, and certain corporations subject to the alternative minimum tax imposed on corporations), property or casualty insurance companies, banks, thrifts or other financial institutions, certain recipients of social security or railroad retirement benefits, taxpayers entitled to claim the earned income credit, taxpayers entitled to claim the refundable credit in Section 36B of the Code for coverage under a qualified health plan or taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry tax-exempt obligations, should consult their tax advisors as to the tax consequences of purchasing or owning the Bonds.
Bond Counsel is also of the opinion that interest on the Bonds is exempt from State of California personal income taxes. Bond Counsel has expressed no opinion regarding other tax consequences arising with respect to the Bonds under the laws of the State of California or any other state or jurisdiction.
A copy of the form of opinion of Bond Counsel is attached hereto as Appendix C.
Original Issue Discount
The Bonds that have an original yield above their respective interest rates, as shown on the inside front cover page of this Official Statement (collectively, the “Discount Bonds”), are being sold at an original issue discount. The difference between the initial public offering prices of such Discount Bonds and their stated amounts to be paid at maturity (excluding “qualified stated interest” within the meaning of Section 1.1273-1 of the Treasury Regulations) constitutes original issue discount treated in the same manner for federal income tax purposes as interest, as described above.
The amount of original issue discount that is treated as having accrued with respect to a Discount Bond is added to the cost basis of the owner of the bond in determining, for federal income tax purposes, gain or loss upon disposition of such Discount Bond (including its sale, redemption or payment at maturity). Amounts received on disposition of such Discount Bond that are attributable to accrued original issue discount will be treated as tax-exempt interest, rather than as taxable gain, for federal income tax purposes.
Original issue discount is treated as compounding semiannually, at a rate determined by reference to the yield to maturity of each individual Discount Bond, on days that are determined by reference to the maturity 31 4938-5081-9471.5
date of such Discount Bond. The amount treated as original issue discount on such Discount Bond for a particular semiannual accrual period is equal to: (a) the product of; (i) the yield to maturity for such Discount Bond (determined by compounding at the close of each accrual period); and (ii) the amount that would have been the tax basis of such Discount Bond at the beginning of the particular accrual period if held by the original purchaser; less (b) the amount of any interest payable for such Discount Bond during the accrual period. The tax basis for purposes of the preceding sentence is determined by adding to the initial public offering price on such Discount Bond the sum of the amounts that have been treated as original issue discount for such purposes during all prior periods. If such Discount Bond is sold between semiannual compounding dates, original issue discount that would have been accrued for that semiannual compounding period for federal income tax purposes is to be apportioned in equal amounts among the days in such compounding period.
Owners of Discount Bonds should consult their tax advisors with respect to the determination and treatment of original issue discount accrued as of any date and with respect to the state and local tax consequences of owning a Discount Bond. Subsequent purchasers of Discount Bonds that purchase such bonds for a price that is higher or lower than the “adjusted issue price” of the bonds at the time of purchase should consult their tax advisors as to the effect on the accrual of original issue discount.
Original Issue Premium
The Bonds that have an original yield below their respective interest rates, as shown on the inside front cover page of this Official Statement (collectively, the “Premium Bonds”), are being sold at a premium. An amount equal to the excess of the issue price of a Premium Bond over its stated redemption price at maturity constitutes premium on such Premium Bond. A purchaser of a Premium Bond must amortize any premium over such Premium Bond’s term using constant yield principles, based on the purchaser’s yield to maturity (or, in the case of Premium Bonds callable prior to their maturity, generally by amortizing the premium to the call date, based on the purchaser’s yield to the call date and giving effect to any call premium). As premium is amortized, the amount of the amortization offsets a corresponding amount of interest for the period, and the purchaser’s basis in such Premium Bond is reduced by a corresponding amount resulting in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes upon a sale or disposition of such Premium Bond prior to its maturity. Even though the purchaser’s basis may be reduced, no federal income tax deduction is allowed. Purchasers of the Premium Bonds should consult their tax advisors with respect to the determination and treatment of premium for federal income tax purposes and with respect to the state and local tax consequences of owning a Premium Bond.
Backup Withholding
An owner of a Bond may be subject to backup withholding at the applicable rate determined by statute with respect to interest paid with respect to the Bonds if such owner fails to provide to any person required to collect such information pursuant to Section 6049 of the Code with such owner’s taxpayer identification number, furnishes an incorrect taxpayer identification number, fails to report interest, dividends or other “reportable payments” (as defined in the Code) properly, or, under certain circumstances, fails to provide such persons with a certified statement, under penalty of perjury, that such owner is not subject to backup withholding.
Changes in Federal and State Tax Law
From time to time, there are legislative proposals in the Congress and in the states that, if enacted, could alter or amend the federal and state tax matters referred to under this caption “TAX MATTERS” or adversely affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether if enacted it would apply to bonds issued prior to enactment. In addition, regulatory actions are from time to time announced or proposed and litigation is threatened or commenced which, if implemented or concluded in a particular manner, could adversely affect the market value of the Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds or the market value thereof would be impacted thereby. 32 4938-5081-9471.5
Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed legislation, regulatory initiatives or litigation. The opinions expressed by Bond Counsel are based on existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Bonds, and Bond Counsel has expressed no opinion as of any date subsequent thereto or with respect to any pending legislation, regulatory initiatives or litigation.
PROSPECTIVE PURCHASERS OF THE BONDS ARE ADVISED TO CONSULT THEIR OWN
TAX ADVISORS PRIOR TO ANY PURCHASE OF THE BONDS AS TO THE IMPACT OF THE CODE UPON THEIR ACQUISITION, HOLDING OR DISPOSITION OF THE BONDS.
OTHER RISK FACTORS
Audit Risk
The United States Internal Revenue Service (the “IRS”) has established a general audit program to determine whether issuers of tax-exempt obligations, such as the Bonds, are in compliance with requirements of the Code that must be satisfied in order for the interest on those obligations to be, and continue to be, excluded from gross income for federal income tax purposes. As a result, organizations such as the City are subject to possible scrutiny. The primary penalty available to the IRS under the Code with respect to a tax-exempt entity engaged in improper use of tax-exempt proceeds is the revocation of tax-exempt status for the applicable obligations. Although the IRS has not frequently revoked the tax-exempt status of municipal bonds, it could do so in the future.
The City cannot predict whether the IRS will commence an audit of the Bonds. Depending on the facts and circumstances and the type of audit involved, it is possible that an audit of the Bonds or obligations similar to the Bonds, even if the tax exemption of the Bonds is not implicated, could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of its ultimate outcome. The Bonds are not subject to acceleration or an increased interest rate in the event of a compliance audit.
Limitations on Enforceability
General. The enforcement of any remedies that are provided for in the Resolution could prove both expensive and time consuming. The rights and remedies provided in the Resolution may be limited by and are subject to: (i) the limitations on legal remedies against cities in the State, including State Constitutional limits on expenditures and limitations on the enforcement of judgments against funds that are needed to serve the public welfare and interest; (ii) federal bankruptcy laws, as now or later enacted, as discussed in detail under the subcaption “—Bankruptcy” below; (iii) applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or later in effect; (iv) equity principles which may limit the specific enforcement under State law of certain remedies; (v) the exercise by the United States of America of the powers delegated to it by the federal Constitution; and (vi) the reasonable and necessary exercise, in certain exceptional situations, of the police powers that are inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose.
Bankruptcy proceedings, or the exercise of powers by the federal or State government, if initiated, could subject the Owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation or modification of their rights.
The legal opinions that will be delivered concurrently with the issuance of the Bonds will be qualified, as to the enforceability of the Bonds, the Resolution and other related documents, by bankruptcy, insolvency, reorganization, moratorium, arrangement, fraudulent conveyance and other laws relating to or affecting creditors’ rights, by the application of equitable principles, by the exercise of judicial discretion in appropriate cases and by the limitations on legal remedies against cities in the State. 33 4938-5081-9471.5
Failure by the City to pay the Bonds or failure to observe and perform any other terms, covenants or conditions of the Resolution constitute events of default under the Resolution and permit Owners to pursue the remedies that are described in Resolution. Upon an event of default, there is no right to accelerate payments on the Bonds that are not then in default. Rather, if the City defaults on its obligation to pay the Bonds, the Owners must sue to recover the unpaid amounts. Any suit for money damages against the City would be subject to limitations on legal remedies against cities in the State, including a limitation on enforcement of judgments against funds needed to serve the public welfare and interest.
Bankruptcy. Enforceability of the rights and remedies of the Owners of the Bonds, and the obligations incurred by the City, may become subject to the provisions of Title 11 of the United States Code (the “Bankruptcy Code”) and applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or later in effect, equity principles which may limit the specific enforcement under State law of certain remedies, the exercise by the United States of America of the powers delegated to it by the federal Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose and the limitations on remedies against cities in the State. Bankruptcy proceedings, or the exercise of powers by the federal or State government, if initiated, could subject the Owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation or modification of their rights.
Under Chapter 9 of the Bankruptcy Code, which governs the bankruptcy proceedings of public agencies such as the City, involuntary petitions are not permitted. If the City were to file a petition under Chapter 9 of the Bankruptcy Code, the Owners of the Bonds could be prohibited from taking any steps to enforce their rights under the Resolution or from taking any steps to collect amounts due from the City on the Bonds.
In particular, if the City were to become a debtor under the Bankruptcy Code, the City would be entitled to all of the protective provisions of the Bankruptcy Code as applicable in a Chapter 9 case. Among the adverse effects of such a bankruptcy might be: (i) the application of the automatic stay provisions of the Bankruptcy Code, which, until relief is granted, would prevent collection of payments from the City or the commencement of any judicial or other action for the purpose of recovering or collecting a claim against the City; (ii) the avoidance of preferential transfers occurring during the relevant period prior to the filing of a bankruptcy petition; (iii) the existence of unsecured or secured debt which may have a priority of payment that is superior to that of Owners of the Bonds; and (iv) the possibility of the adoption of a plan (an “Adjustment Plan”) for the adjustment of the City’s various obligations over the objections of all of the Owners of the Bonds and without their consent, which Adjustment Plan may restructure, delay, compromise or reduce the amount of any claim of the Owners if the Bankruptcy Court finds that such Adjustment Plan is “fair and equitable” and in the best interests of creditors. The Adjustment Plans approved by the Bankruptcy Courts in connection with the bankruptcies of the cities of Vallejo and Stockton resulted in significant reductions in the amounts payable by the cities under lease revenue obligations that were substantially identical or similar to the Bonds. The City can provide no assurances about the outcome of the bankruptcy cases of other California municipalities or the nature of any Adjustment Plan if it were to file for bankruptcy.
Secondary Market
There can be no guarantee that there will be a secondary market for the Bonds, or, if a secondary market exists, that the Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing in connection with a particular issue is suspended or terminated. In addition, prices of issues for which a market is being made will depend upon the then prevailing circumstances. Such prices could be substantially different from the original purchase price.
In addition, the City has entered into a continuing disclosure undertaking in connection with the Bonds.
Any material failure to comply with such undertaking in the future may adversely affect the liquidity of the affected Bonds and their market price in the secondary market. 34 4938-5081-9471.5
LEGAL OPINIONS
All legal matters in connection with the issuance of the Bonds are subject to the approval of Kutak Rock LLP, Irvine, California, as Bond Counsel. Kutak Rock LLP, Irvine, California, is also serving as Disclosure Counsel to the City. Certain legal matters are being passed upon for the City by the City Attorney, Jennifer P.
Thompson, Esq., Lozano Smith, San Luis Obispo, California.
NO LITIGATION
There is no action, suit or proceeding known to be pending or threatened, restraining or enjoining the issuance or delivery of the Bonds or the Resolution or in any way contesting or affecting the validity of the foregoing or any proceedings of the City taken with respect to any of the foregoing. The City is not aware of any litigation pending or threatened questioning the political existence of the City or its powers, contesting the City’s ability to receive ad valorem taxes or to collect other revenues or contesting the City’s ability to issue and pay principal of or interest on the Bonds.
The City is subject to a number of lawsuits in the ordinary conduct of its affairs, including a number of actions that if successful would be payable from the City’s General Fund. In the opinion of the City Attorney, there are no claims or actions, threatened or pending, which, if determined against the City, would impair the ability of the City to make debt service payments or otherwise meet its General Fund debt obligations, or which would materially impair the City’s ability to fund current operations.
AUDITED FINANCIAL STATEMENTS
The Annual Comprehensive Financial Report of the City for the Fiscal Year ended June 30, 2025, included as Appendix B to this Official Statement, has been audited by Glenn Burdette Attest Corporation, San Luis Obispo, California (the “Auditor”), the City’s independent auditor, as stated in the Auditor’s report appearing therein. In connection with the inclusion of such financial statements and the report of the Auditor thereon, the City did not request the Auditor to, and the Auditor has not undertaken to, update its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by the Auditor with respect to any event subsequent to the date of its report.
CONTINUING DISCLOSURE
The City has covenanted in a Continuing Disclosure Certificate, dated the date of issuance of the Bonds, for the benefit of the Owners and Beneficial Owners of the Bonds to provide certain financial information and operating data relating to the City by not later than each April 1 following the end of the City’s Fiscal Year (currently, its Fiscal Year ends on June 30) (the “Annual Report”), commencing on April 1, 2027 with the report for Fiscal Year 2025-26, and to provide notices of the occurrence of certain enumerated events. The Annual Report and the notices of enumerated events will be filed by the City with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/. The specific nature of the information to be contained in the Annual Report and the notices of enumerated events is set forth in Appendix D. These covenants have been made in order to assist the Underwriter in complying with subsection (b)(5) of Rule 15c2 12.
In 2021, the City provided notice of a change in the paying agent for the 2015 GO Bonds, 2016 GO Bonds and 2017 GO Bonds after the date required by the continuing disclosure undertakings for such obligations.
Except as set forth in the previous sentence, the City has not failed to comply in all material respects with its prior continuing disclosure obligations in the past five years.
The City believes that it has implemented sufficient policies and procedures in order to ensure the timely and correct filing of future Annual Reports and notices of enumerated events required under its existing 35 4938-5081-9471.5
continuing disclosure obligations, including the obligation pertaining to the Bonds. To assist it in meeting its continuing disclosure obligations, the City has retained A. M. Peché & Associates LLC, as its dissemination agent for the Bonds.
MUNICIPAL ADVISOR
A. M. Peché & Associates LLC, Lathrop, California (the “Municipal Advisor”) served as Municipal Advisor to the City with respect to the sale of the Bonds. The Municipal Advisor assisted the City in matters relating to the planning, structuring and sale of the Bonds and review of this Official Statement and will receive compensation contingent upon the sale and delivery of the Bonds. The Municipal Advisor has not independently verified any of the data contained in this Official Statement or conducted a detailed investigation of the affairs of the City to determine the accuracy or completeness of this Official Statement. The Municipal Advisor provides financial advisory services and does not engage in the underwriting, marketing or trading of municipal securities or other negotiable instruments.
The Municipal Advisor has provided the following sentence for inclusion in this Official Statement:
“The Municipal Advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the City and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Municipal Advisor does not guarantee the accuracy or completeness of such information.”
PROFESSIONAL FEES
In connection with the execution and delivery of the Bonds, fees payable to Bond Counsel, Disclosure Counsel, the Municipal Advisor and the Paying Agent are contingent upon the execution and delivery of the Bonds.
RATING
Upon issuance of the Bonds, S&P will assign the Bonds a rating of “[__].” Such rating reflects only the views of the ratings agency and any desired explanation of the significance of such ratings should be obtained from S&P. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that any rating will continue for any given period of time or that the rating will not be qualified, revised downward or withdrawn entirely by S&P, if, in the judgment of S&P, circumstances so warrant, nor can there be any assurance that the criteria required to achieve the rating on the Bonds will not change during the period that the Bonds remain outstanding. The City undertakes no responsibility to oppose any such revision or withdrawal. Any such downward revision or withdrawal of such rating may have an adverse effect on the market price of the Bonds.
A rating is not a recommendation to buy, sell or hold securities. Future events could have an adverse impact on the rating of the Bonds. The rating reflects only the current views of S&P (which could change at any time).
The City has covenanted in its continuing disclosure undertakings to file notices of any rating changes on the Bonds with EMMA. See the caption “CONTINUING DISCLOSURE” and Appendix D.
Notwithstanding such covenant, information relating to rating changes on the Bonds may be publicly available from S&P prior to such information being provided to the City and prior to the date by which the City is obligated to file a notice of rating change. Purchasers of the Bonds are directed to S&P and its websites and official media outlets for the most current ratings with respect to the Bonds after the issuance of the Bonds. 36 4938-5081-9471.5
UNDERWRITING
Under the terms of a competitive bid held on June __, 2026, _____ (the “Underwriter”) has agreed to purchase the Bonds at a price of $_____ (which is equal to the aggregate principal amount of the Bonds ($_____), plus/less a net original issue premium of $_____ and less an Underwriter’s discount of $_____). The obligations of the Underwriter are subject to certain conditions precedent set forth in the “Official Notice of Sale,” including the approval of certain legal matters by counsel and certain other conditions, and the Underwriter will be obligated to purchase all Bonds if any are purchased. The Underwriter intends to offer the Bonds to the public initially at the prices and/or yield set forth on the inside front cover page of this Official Statement, which prices or yields may subsequently change without any requirement of prior notice.
The Underwriter reserves the right to join with dealers and other underwriters in offering the Bonds to the public. The Underwriter may offer and sell Bonds to certain dealers (including dealers depositing Bonds into investment trusts) at prices lower than the public offering prices, and such dealers may reallow any such discounts on sales to other dealers.
In reoffering Bonds to the public, the Underwriter may over allocate or effect transactions which stabilize or maintain the market prices for Bonds at levels above those which might otherwise prevail. Such stabilization, if commenced, may be discontinued at any time.
The Underwriter and its affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, investment management, principal investment, hedging, financing and brokerage activities. The Underwriter and its respective affiliates have, from time to time, performed, and may in the future perform, various investment banking services for the City for which they received or will receive customary fees and expenses.
In the ordinary course of their various business activities, the Underwriter and its affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (which may include bank loans and/or credit default swaps) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve securities and instruments of the City.
MISCELLANEOUS
Quotations from and summaries and explanations of the California Government Code, other applicable legislation, the Authorization, the Resolution, the City, agreements and other documents referenced herein, do not purport to be complete, and reference is made to said documents, constitutional provisions and statutes for full and complete statements of their provisions. Prospective purchasers of the Bonds are advised to refer to such documents, provisions and reports for full and complete statements of their contents. Any statements made in this Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers or Owners of any of the Bonds.
Some of the data contained herein has been taken or constructed from City records. Appropriate officials of each of the City, acting in their official capacities, have reviewed this Official Statement and have determined that, as of the date hereof, the information contained herein is, to the best of their knowledge and belief, true and correct in all material respects and does not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made herein, in light of the circumstances under which they were made, not misleading.
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EXECUTION
The execution of this Official Statement and its delivery have been approved by the City Council.
CITY OF GROVER BEACH
By:
Matthew Bronson, City Manager
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APPENDIX A
CERTAIN INFORMATION CONCERNING THE CITY OF GROVER BEACH This Appendix A to the Official Statement of the City of Grover Beach, California (the “City”) covers general information about the City’s governance structure, budget processes, tax and revenue sources, expenditures, labor relations, employment benefits and retirement costs and investments, bonds and other longterm obligations.
The various reports, documents, websites and other information referred to herein are not incorporated herein by such references. The City has referred to certain specified documents in this Appendix A, including financial information, concerning the City which is available from the City’s publications, websites and departments. Any such information that is inconsistent with the information set forth in this Official Statement should be disregarded and is not a part of or incorporated into this Appendix A. The information contained in this Official Statement, including this Appendix A, speaks only as of its date, and the information herein is subject to change. Prospective investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision.
Introduction
The City is located in San Luis Obispo County (the “County”) along the central coast of California (the “State”), 92 miles north of Santa Barbara and 150 miles south of Monterey, midway between San Francisco and Los Angeles. U.S. Highway 101, a major north-south thoroughfare in coastal California, passes through the City. Amtrak also provides twice-daily rail service to the City from Los Angeles.
The City encompasses a total area of approximately 2.25 square miles and is contiguous with the Pismo Beach area, 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 a relaxing atmosphere unique to coastal communities. Major attractions in the City include a State Beach, a beach boardwalk, the entrance to the Oceano Dunes State Vehicular Recreation Area and the Butterfly Grove, a stopping point for migrating monarch butterflies.
According to the California Department of Finance, the City had a population of 12,411 as of January 1, 2025. The total assessed valuation of taxable property in the City in the fiscal year ended June 30 (each, a “Fiscal Year”), 2026 is approximately $2,456,475,342.
Population
Population figures for the City, the County and the State for the last five years are shown in the following table.
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City of Grover Beach
Population Estimates as of January 1
Year
City of Grover
Beach
County of
San Luis Obispo State of California
2022 13,128 278,723 39,538,223
2022 12,707 279,751 39,286,510
2023 12,467 278,348 39,078,674
2024 12,455 279,568 39,420,663
2025 12,411 279,337 39,529,101
_____________________
Source: California State Department of Finance, Demographic Research Unit.
City Government
The City was founded in 1887 and incorporated in 1959. The City operates under a council-manager form of government. Policymaking and legislative authority are vested in a city council (the “City Council”), consisting of the Mayor and four Council Members who are elected by geographic districts. The City 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, daily administration of City affairs, preparation and submission of the annual budget to the City Council for approval, appointing the City Clerk and other employees and otherwise managing daily operations of the City.
The members of the City Council and their terms of office are shown below:
City Council Member Term Expires
Kassi Dee, Mayor December 2026
Robert Robert, Mayor Pro Tem – District 1 December 2026 Jules Tuggle, Councilmember – District 2 December 2026
Kathy McCorry-Driscoll, Councilmember – District 3 December 2028 Clint Weirick, Councilmember – District 4 December 2028 The City provides a full range of municipal services including police protection and fire protection with a joint powers authority; construction and maintenance of City streets, sanitary services, water system, storm drains, bridges and other infrastructure assets; park maintenance; and community recreation activities. In terms of business type activities, the City provides water, wastewater and stormwater collection services through operation of its utility enterprises.
City Manager
Matthew Bronson has served as City Manager for the City since his appointment by the Grover Beach City Council in May 2016. Mr. Bronson oversees the day-to-day operations of the City organization with a total budget of $35 million and a workforce of approximately 80 employees. Mr. Bronson has over 25 years of local government experience working for cities and counties in California and North Carolina. Prior to coming to the City, Mr. Bronson served as Assistant City Manager for the City of San Mateo, California, where he provided support to the City Council and City Manager on special projects and oversaw the City’s economic development, sustainability, communications, volunteer engagement and downtown parking and maintenance programs. He previously served in the County Administrator’s Office in Marin County, California and the City Manager’s Office and Budget and Evaluation Office in the City of Charlotte, North Carolina.
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Mr. Bronson has an undergraduate degree in environmental policy from the University of California, Davis and a master’s degree in public administration from the University of North Carolina at Chapel Hill. He is a credentialed manager and member of the International City/County Management Association (ICMA) and serves on the Cal-ICMA Ethics Committee and Davenport Institute for Public Engagement and Civic Leadership Advisory Council. On a local level, Mr. Bronson is a member of the Grover Beach/Five Cities Rotary Club and also serves as Treasurer of the Board of Directors for the San Luis Obispo County YMCA and President of the Board of Directors for the Arroyo Grande Valley Little League.
Labor Relations
As of April 1, 2026, the City employed approximately 61 full-time equivalent budgeted employees.
There are two employee labor unions and three required employee groups as shown below. The City has not experienced any work stoppages or strikes by its employees.
City of Grover Beach
Labor Relations
Labor Organization Employees
Contract Expiration
Date
Service Employees International Union Local 620 19 June 30, 2027 Grover Beach Police Officers’ Association 22 June 30, 2027 Grover Beach Police Management and Confidential Employees Group 10 June 30, 2027 Management and Confidential 4 June 30, 2027
Executive Management 6 June 30, 2027
____________________
Source: City.
Cybersecurity
Municipal agencies, like other business entities, face significant risks relating to the use and application of computer software and hardware. Recently, there have been significant cybersecurity incidents affecting municipal agencies, including a freeze affecting computer systems of the City of Atlanta, an attack on the City of Baltimore’s 911 system, an attack on the Colorado Department of Transportation’s computers, an attack on the San Bernardino County Sheriff’s Office and an attack that resulted in the temporary closure of the Port of Los Angeles’ largest terminal.
The City has an information security policy and employs a multi-level cyber protection scheme that includes firewalls, anti-virus software, anti-spam/malware software, intrusion protection, multiple factor authentication and domain name system filtering software. In addition, the City contracts with a third-party vendor to monitor and augment external monitoring of the City’s computer systems. The City implements recommended strategies suggested by the vendor and makes internal computer system changes as needed. The City maintains ongoing backup of data restore points which are kept in offsite and secure locations and has moved to its Enterprise Resource Planning finance modules to a cloud-based network. To date, the City has not experienced a significant attack on its computer operating systems. However, there is no assurance that a future attack or attempted attack would not result in disruption of City operations. The City expects that any such disruptions would be temporary in nature.
CITY FINANCIAL INFORMATION
Accounting Policies and Financial Reporting
The accounts of the City are organized on the basis of funds and account groups to reflect different activities. The operations of each fund are accounted for with a separate set of self-balancing accounts that A-4
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comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which the spending activities are controlled. The City’s General Fund and other governmental fund types use 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 capital leases are reported as other financing sources.
All of the City’s other funds, including proprietary fund types and fiduciary fund types, use the accrual basis of accounting.
The basis of accounting for all funds is more fully explained in the “Notes to the Financial Statements” set forth in Appendix B.
The City Council contracts with an independent certified public accountant who, at such time or times as specified by the City Council, at least annually, and at such other times as the City Council determines, examines the combined financial statements of the City in accordance with generally accepted auditing standards, including such tests of the accounting records and such other auditing procedures as the accountant considers necessary. As soon as practicable after the end of each Fiscal Year, a final audit and report is submitted by such accountant to the City Council and a copy of the financial statements as of the close of the Fiscal Year is published.
The City, all of its funds and the funds of certain other component entities of the City are audited annually by a certified public accounting firm. The firm of Glenn Burdette Attest Corporation, San Luis Obispo, California, is the City’s current auditor (the “Auditor”). The annual comprehensive financial report of the City for Fiscal Year 2024-25 is attached hereto as Appendix B. The City’s financial statements are public documents and are included within this Official Statement without the prior approval of the Auditor. Accordingly, the Auditor has not performed any post-audit of the financial condition of the City.
The Governmental Accounting Standards Board (“GASB”) published its Statement No. 34 “Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments” on June 30, 1999. Statement No. 34 provides guidelines to auditors, state and local governments and special purpose governments such as school districts and public utilities, on requirements for financial reporting for all governmental agencies in the United States. Generally, the basic financial statements and required supplementary information should include: (a) a Management’s Discussion and Analysis; (b) government-wide financial statements prepared using the economic measurement focus and the accrual basis of accounting and fund financial statements prepared using both the current financial resources measurement focus and the modified accrual method of accounting (governmental funds) and funds using the economic measurement focus and the accrual basis of accounting (proprietary funds); and (c) required supplementary information. The City’s financial statements are prepared in conformance with the requirements of Statement No. 34 and other Generally Accepted Accounting Principles applicable to public agencies (“GAAP”).
Budgetary Process and Administration
The City employs a two-year budget process. Annual budgets are adopted on a basis consistent with GAAP. The City’s budget ordinance requires that, by June 1 of each other 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 each year. In year two of the two-year cycle, the budget will be A-5
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approved for second year appropriations but will not require a full budget hearing given passage of the budget in the preceding 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. Budget modifications between funds, increases or decreases to a fund’s overall budget, transfers between General Fund departments or transfers that affect capital projects, must be approved by the City Council. Numerous properly authorized amendments are made during the Fiscal Year.
Revenues and expenditures relating to the City’s general governmental operations are budgeted and accounted for in the City’s General Fund, including public safety, health and welfare, culture and recreation, community development, housing and economic development and the Local Transportation Fund, including highways and streets and other transit related costs. General taxes and fees support most of these activities. The “business” or proprietary activities of the City are accounted for in each of two enterprise funds, which include those established for water, sewage treatment, pumping stations and collection systems. These activities are intended to be completely or largely self-supporting through user fees and charges. The water and wastewater utility enterprises make annual transfers to the City’s General Fund as part of the indirect cost allocation for such utility enterprises to the City. In Fiscal Year 2024-25, such General Fund transfers totaled $737,817 in amount and such General Fund transfers are expected to increase in amount by a factor of the Consumer Price Index each year.
Unless otherwise noted, the balance of this Appendix A is concerned with the operations and performance of the City’s General Fund, which is the City’s general operating fund and is used to account for all financial resources except those that are required to be accounted for in another fund.
General Economic Condition and Outlook
As of June 30, 2025, the General Fund had a year-end surplus of approximately $2.4 million prior to transfers in and out, reflecting revenues of approximately $21.2 million and expenditures of approximately $18.8 million. The adopted Fiscal Year 2023-25 budget had anticipated a Fiscal Year 2024-25 General Fund surplus of approximately $0.1 million, with revenues expected to total approximately $18.5 million and expenditures expected to total approximately $18.4 million prior to transfers in and out. Variances from the original budget for Fiscal Year 2024-25 consisted primarily of intergovernmental revenues coming in over $3.8 million higher than budgeted.
For Fiscal Year 2025-26, the first year of the current budget, the adopted General Fund operating budget projects revenues of approximately $20.8 million prior to transfers in, which is approximately $0.4 million (3%) below Fiscal Year 2024-25 audited revenues. In addition, the adopted Fiscal Year 2025-26 General Fund operating budget projects expenditures of approximately $18.1 million prior to transfers out, which is approximately $0.7 million (4%) below Fiscal Year 2024-25 audited expenditures.
Based on operating results to date, the City currently expects both Fiscal Year 2025-26 General Fund revenues and Fiscal Year 2025-26 General Fund expenditures to come in near budgeted levels.
For Fiscal Year 2026-27, the second year of the current budget, the adopted General Fund operating budget projects revenues of approximately $18.7 million prior to transfers in, which is approximately $2.5 million (12%) below Fiscal Year 2024-25 audited revenues. In addition, the adopted Fiscal Year 2026-27 General Fund operating budget projects expenditures of approximately $18.7 million prior to transfers out, which is approximately $0.1 million (1%) above Fiscal Year 2024-25 audited expenditures. Currently, the City believes that the Fiscal Year 2026-27 budgeted figures are reasonable and does not expect to make significant revisions to the Fiscal Year 2026-27 budget prior to the commencement of such Fiscal Year.
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Increases in expenditures in the current budget cycle reflect the City’s commitment to provide resources to its Police Department, including filling vacant positions, among other matters. The City also notes the completion of two significant mixed-use developments, which will provide approximately 100 condominium housing units and commercial establishments, as well the commencement of construction of another 53-unit housing complex. These developments are expected to generate additional property and sales tax revenues for the City in the future.
Comparative Financial Statements
The following tables provide the City’s: (i) comparative General Fund balance sheet for Fiscal Years 2020-21 through 2024-25; and (ii) its comparative General Fund revenues, expenditures, transfers, and ending fund balances for Fiscal Years 2020-21 through 2024-25.
City of Grover Beach
General Fund Balance Sheet
Fiscal Year
2020-21
Fiscal Year
2021-22
Fiscal Year
2022-23
Fiscal Year
2023-24
Fiscal Year
2024-25
Assets:
Cash and Investments $6,029,776 $6,306,879 $ 8,591,904 $ 8,691,993 $2,898,148 Accounts Receivable 1,252,979 1,902,740 1,853,677 1,834,659 5,615,690 Interest Receivable 3,996 10,483 47,440 59,872 30,206
Due from Funds 786,873 477,241 197,945 - 384,937
Prepaid Expense 1,211 - 1,148 1,612 1,612
Deposits 1,612 1,612 1,612 - -
Total Assets $8,076,447 $8,698,955 $10,693,726 $10,578,136 $8,930,593 Liabilities and Fund Balances:
Liabilities:
Accounts Payable $ 269,622 $ 803,050 $ 264,556 $ 257,515 $ 987,437 Accrued Wages 448,440 350,941 331,369 227,423 106,137
Advances Payable 1,386,059 1,282,313 1,175,589 1,041,642 704,639 Unearned Revenue 1,921,282 476,983 1,433,999 245,941 107,541 Total Liabilities: $4,025,403 $2,913,287 $ 3,205,513 $ 1,772,531 $1,905,754 Fund Balances:
Nonspendable:
Prepaid Expenses $ 1,211 $ - $ 1,148 $ 1,612 $ 1,612
Deposits 1,612 1,612 1,612 - -
Unassigned 4,048,221 5,784,056 7,485,453 8,803,993 7,023,227 Total Fund Balances $4,051,044 $5,875,668 $ 7,488,213 $ 8,805,605 $7,024,839 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
$8,076,447 $8,698,955 $10,693,726 $10,578,136 $8,930,593 ____________________
Source: City of Grover Beach Annual Comprehensive Financial Reports for Fiscal Years 2020-21 through 2024-25.
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City of Grover Beach
Statement of General Fund Revenues, Expenditures and Ending Fund Balances Fiscal Year
2020-21
Fiscal Year
2021-22
Fiscal Year
2022-23
Fiscal Year
2023-24
Fiscal Year
2024-25
Revenues:
Taxes $12,708,557 $14,264,291 $14,640,552 $14,526,218 $15,238,724 Licenses, Permits, and Fees 335,682 351,466 424,554 514,705 542,467 Intergovernmental(1) 340,446 1,475,030 831,966 7,394,417 3,879,052 Charges for Services 624,174 860,514 953,107 730,264 1,164,522 Fines and Forfeitures 40,845 47,823 42,857 37,838 30,509 Use of Money and Property 72,378 (69,206) 255,429 586,589 378,731 Other - - 3 2,183 -
Total Revenues $14,122,082 $16,929,918 $17,148,468 $23,792,214 $21,234,005 Expenditures:
General Government $ 4,210,209 $ 4,443,393 $ 4,517,231 $ 7,905,734 $ 8,687,090 Public Safety 7,165,935 7,502,432 7,804,889 6,680,356 7,117,252 Community Development 547,071 792,538 665,320 5,811,858 705,768 Public Works 1,202,725 1,530,366 1,447,905 1,462,540 1,583,733 Parks and Recreation 327,463 545,861 550,570 - -
Capital Outlay 81,186 559,348 667,204 1,786,250 492,405 Debt Service:
Principal 142,171 112,838 270,202 83,813 203,557
Interest 12,449 21,370 26,249 18,733 47,223
Total Expenditures $13,689,209 $15,508,146 $15,949,570 $23,749,284 $ 18,837,028 Excess of Revenues Over (Under)
Expenditures
$ 432,873 $ 1,421,772 $(1,198,898) $ 42,930 $ 2,396,977 Other Financing Sources (Uses):
Lease Liability (as Lessee) $ - $ 371,147 $ - $ 1,167,032 $ - Subscription Financing - - 344,613 - 220,085
Transfers In(2) 578,000 531,000 546,541 636,417 737,817 Transfers Out (228,959) (589,295) (387,507) (528,987) (5,135,645) Total Other Financing Sources (Uses) $ 349,041 $ 312,852 $ 503,647 $ 1,274,462 $(4,177,743) Net Change in Fund Balance $ 781,914 $ 1,734,624 $ 1,702,545 $ 1,317,392 $(1,780,766) Fund Balances – July 1 $ 3,269,130 $ 4,051,044 $ 5,785,668 $ 7,488,213 $ 8,805,605 Fund Balances – June 30 $ 4,051,044 $ 5,785,668 $ 7,488,213 $ 8,805,605 $ 7,024,839 ___________________
(1) Fiscal Year 2023-24 amount reflects pass-through funding for Permanent Local Housing Allocation grant program (a State of California housing initiative) subrecipients.
(2) Generally consists of the annual transfers from the water and wastewater utility enterprises to the City’s General Fund as part of the indirect cost allocation for such utility enterprises to the City.
Source: City of Grover Beach Annual Comprehensive Financial Reports for Fiscal Years 2020-21 through 2024-25.
City Reserve Policy
Pursuant to the City’s financial policies, the City has set a minimum overall reserve level of 25% of its operating expenditures. Such reserves are generally held as:
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• a general reserve equal to 15% of City operating expenditures, held to provide funding to meet operation appropriation requirements in the event that the City experiences shortfalls in the collection of General Fund revenues or major unanticipated increases in expenditures, with any transfer of funds from the such general reserve occurring only after City Council approval of an amendment to the City’s annual appropriation resolution; and
• an emergency reserve equal to at least 10% of City operating expenditures, held to provide emergency funding as a result of a declared emergency, or to fund an unanticipated urgent event affecting or threatening the public health, safety and welfare of the City, with any transfer of funds from the emergency reserve occurring only after City Council approval of an amendment to the City’s annual appropriation resolution and after the City Council makes an appropriate finding of emergency conditions.
General Fund Revenues
A majority of the City’s General Fund revenues come from sales taxes and ad valorem taxes levied on behalf of the City upon all property subject to taxation by the City. See the caption “TAX BASE FOR PAYMENT OF BONDS” in the forepart of this Official Statement. In addition to sales taxes and property taxes, the City has several other major tax and fee revenue sources, as described below. The following table summarizes the City’s actual general fund revenues for the last five Fiscal Years.
City of Grover Beach
General Fund Revenues
Fiscal Year
2020-21
Fiscal Year
2021-22
Fiscal Year
2022-23
Fiscal Year
2023-24
Fiscal Year
2024-25
Property Taxes $ 4,984,875 $ 5,229,806 $ 5,605,655 $ 5,859,025 $ 6,164,025 Cannabis Tax 2,424,914 1,515,590 1,198,037 1,066,489 1,093,170 Franchise Fees 600,228 619,416 713,394 718,907 846,346
Sales Tax 3,846,966 5,649,554 5,882,949 5,627,544 5,775,484 Transient Occupancy Tax 580,423 952,228 924,162 953,685 1,028,421 Utility Users Tax 184,866 190,271 205,838 194,834 225,792 Revenue from Other Agencies 340,446 1,475,030 831,966 7,394,417 3,879,052 Charges for Services 624,174 860,514 953,107 730,264 1,194,677 Licenses and Permits 335,682 351,466 424,554 514,705 542,467 Use of Money and Property 72,378 (69,206) 255,429 586,590 378,729 Fines and Penalties 40,845 47,823 42,857 37,838 30,509
Other Revenues - 371,147 344,613 1,167,033 -
Total $14,035,796 $17,193,639 $17,382,560 $24,851,330 $21,158,672 ____________________
Source: City.
Property Taxes. Property taxes are assessed on all property within the City limits. Property taxes include secured and unsecured property taxes, transfer taxes and taxes in lieu of vehicle license fee tax (the “VLF”). See the forepart of this Official Statement under the captions “SECURITY FOR THE BONDS” and “TAX BASE FOR PAYMENT OF BONDS” for a detailed discussion of secured and unsecured property taxes.
The City collects $0.55 per $1,000 on the value of any documented sale or transfer of real property within the City. The tax is due when the transfer is recorded with the County. Title companies collect the tax as part of the sale closing process and remit the funds to the County when sales or transfers are finalized. The County remits amounts due to the City monthly, and the amounts are credited to the General Fund.
Vehicle In-Lieu Fees. The VLF is imposed for the operation of vehicles on State highways are collected by the State Department of Motor Vehicles in lieu of personal property taxes on vehicles. In connection with A-9
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the offset of the VLF, the State Legislature authorized appropriations from the State General Fund to “backfill” the offset so that local governments, which receive all of the VLF revenues, would not experience any loss of revenues. The legislation that established the VLF offset program also provided that if there were insufficient State General Fund moneys to fully “backfill” the VLF offset, the percentage offset would be reduced proportionately (i.e., the license fee payable by drivers would be increased) to assure that local governments would not be underfunded.
As part of the State’s 2004 Budget Act negotiations, an agreement was made between the State and local government officials under which the VLF rate was permanently reduced from 2% to 0.65%. In order to protect local governments, the reduction in VLF revenue to cities and counties from this rate change was replaced by an increase in the amount of property tax they receive. Commencing in State fiscal year 2004-05, local governments began to receive their full share of replacement property taxes, and those replacement property taxes now enjoy Constitutional protection against certain transfers by the State because of the approval of Proposition 1A at the November 2004 election.
Sales and Use Tax. The sales tax is an excise tax imposed on retailers for the privilege of selling or leasing tangible personal property. The use tax is an excise tax imposed for the storage, use or other consumption of tangible personal property purchased from any retailer. The total sales tax rate within the City is currently
8.75%, which includes a 0.5% sales tax increase approved by a majority of voters in the City at a November 7, 2006 election and a 1.0% sales tax increase approved by a majority of voters in the City at the November 3, 2020 election. The proceeds of general sales and use taxes imposed within the City are distributed by the State to various agencies, with the City receiving 1.0% of the amount collected.
Collection of the sales and use tax is administered by the California Department of Tax and Fee Administration (the “CDTFA”). Under its procedures, the CDTFA projects receipts of the sales and use tax on a quarterly basis and remits an advance of the receipts of the sales and use tax to the City on a monthly basis.
The amount of each monthly advance is based upon the CDTFA’s quarterly projection. During the last month of each quarter, the CDTFA adjusts the amount remitted to reflect the actual receipts of the sales and use tax for the previous quarter. The CDTFA receives an administrative fee based on the cost of services provided by the CDTFA to the City in administering the City’s sales tax, which is deducted from revenue generated by the sales and use tax before it is distributed to the City.
Sales and use tax revenues are based upon the gross receipts of retail sales of tangible goods and products by retailers with taxable transactions in the City, which could be impacted by a variety of factors. Factors that have historically affected sales tax revenues include the overall economic growth of the City and County, competition from neighboring cities, the growth of specific industries within the City, employment levels within the City, the City’s business attraction and retention efforts and catalog and Internet sales. See the caption “— Commercial Activity” below.
In addition, changes or amendments in the laws applicable to the City’s receipt of sales tax revenues or other local taxes, whether implemented by State legislative action or voter initiative, could have an adverse effect on sales tax revenues received by the City.
Many categories of transactions are exempt from the Statewide sales tax, and additional categories could be added in the future. Currently, most sales of food products for human consumption are exempt; this exemption, however, does not apply to liquor or to restaurant meals. The rate of sales tax levied on taxable transactions in the City or the fee charged by the CDTFA for administering the City’s sales tax could also be changed.
In the wake of the COVID-19 outbreak, the Governor extended the deadline to file and pay first quarter 2020 sales and use tax returns by 90 days for all but the very largest taxpayers, and up to 361,000 California businesses with less than $5 million in taxable annual sales were allowed to defer up to $50,000 in sales tax and A-10
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enter into 12-month payment plans at zero interest. There can be no assurance that extensions of payment deadlines will not be ordered should another pandemic occur or economic recessions occur in the future.
Cannabis Tax. The City started collecting cannabis tax revenue in 2018 and it is already the City’s third largest tax revenue generator for the General Fund. Cannabis tax revenue has increased significantly since 2018, increasing from $16,000 in the first year of collection to over $1.0 million in Fiscal Year 2025. The industry has a degree of uncertainty as cannabis businesses begin operating in nearby cities and the industry in general continues to face significant pressure from an illegal market that is not taxed or regulated.
Utility Users Tax. The City imposes a 1% tax on users of gas, electricity, telephone and water service.
Some of the factors affecting this revenue stream include consumer demand for these utilities, legislative and regulatory action, rate changes and the evolution of technology.
Business Tax Certificate. The City requires all businesses within the City to obtain a business tax certificate for each business location and/or type of business. The annual tax is determined based on the square footage of the business located in the City. Businesses located outside of the City are required to pay a minimum tax of $64 per year, with the exception of vending machine providers, which make a payment based on gross receipts in the City, and apartments, which make a payment based on the number of dwelling units. The overall revenue from this tax is dependent on the number of license renewals each year and the growth of businesses and industries within the City.
Other Revenues. The City also collects additional general fund revenues from franchise fees, transient occupancy taxes and other sources. In Fiscal Year 2020-21, the City adopted a short-term rental ordinance pursuant to which transient occupancy taxes are payable by users of short-term rental properties. Since Fiscal Year 2020-21, the City has also collected franchise fees on fiber optic cable connections.
State Budget and Its Impact on the City
A portion of the City’s revenues come in the form of intergovernmental transfers from the State government, includes sales tax and VLF proceeds. Thus, the City’s fiscal situation is affected by the health of the local real estate market, the local business and tourist economy and budgetary decisions made by the State which depend, in turn, on the health of the larger State economy. In addition, the fact that the City’s annual budget is usually adopted before the State budget adds uncertainty to the budget process and necessitates flexibility so that spending decisions can be adjusted during the course of a Fiscal Year.
The City cannot predict what actions will be taken in the future by the California Legislature and the Governor to deal with changing State revenues and expenditures. The City can provide no assurance that the State’s annual budget or other legislation will not materially adversely affect the financial condition of the City.
It is anticipated that there could be additional future legislation which addresses State General Fund reserve levels and/or liabilities, and in such event the City cannot currently predict what the impact, if any, of actions by the State. Given the magnitude of the State’s budgetary deficits from time to time, and prior practices by the State Legislature, it is possible that future legislation will impact revenues of the City.
The State has experienced significant financial stress in recent years, with budget shortfalls in the several billions of dollars. The waning of the COVID-19 crisis was followed by increases in unfunded liabilities of the two main retirement systems managed by State entities, CalPERS and CalSTRS. The State also has a significant unfunded liability with respect to other post-employment benefits.
Current and future State budgets will be significantly affected by the State, national and global economy and other factors over which the City has no control. The City cannot determine what actions will be taken in the future by the State Legislature and the Governor to deal with budget deficits, recessions and resulting changes in State revenues and expenditures. There can be no assurance that the State will not significantly reduce revenues to local governments (including the City) or shift financial responsibility for programs to local A-11
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governments as part of its efforts to address State financial conditions. Although the State is not a significant source of City revenues, there can be no assurance that State actions will not materially adversely affect the financial condition of the City. The State’s ability to undertake such revenue reductions or shifting has been limited by provisions of the State Constitution. See the caption “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY REVENUES AND APPROPRIATIONS—Proposition 22” in the forepart of this Official Statement.
Information about the current and proposed State budget is regularly available at various Statemaintained websites. Text of proposed and adopted budgets may be found at the website of the State Department of Finance, http://www.dof.ca.gov, under the heading “California Budget.” An impartial analysis of the budget is posted by the Legislative Analyst’s Office at http://www.lao.ca.gov. In addition, various State Official Statements, many of which contain a summary of the current and past State budgets and the impact of those budgets on cities in the State, may be found at the website of the State Treasurer, http://www.treasurer.ca.gov.
The information referred to is prepared by the respective State agency maintaining each website and not by the City, and the City takes no responsibility for the continued accuracy of these Internet addresses or for the accuracy, completeness or timeliness of information posted there, and such information is not incorporated herein by these references.
Retirement Programs
Accounting and financial reporting by state and local government employers for defined benefit pension plans is governed by GASB Statement No. 68 (“GASB 68”), which includes the following elements: (i) unfunded pension liabilities are included on the employer’s balance sheet; (ii) pension expense incorporates rapid recognition of actuarial experience and investment returns and is not based on the employer’s actual contribution amounts; and (iii) the difference between expected and actual investment returns will be recognized over a closed five-year smoothing period. GASB 68 affects the City’s accounting and reporting requirements, but it does not change the City’s pension plan funding obligations.
The City participates in a Miscellaneous Plan to fund pension benefits for non-public safety employees and a Safety Plan to fund pension benefits for police and fire employees. The City’s pension plans are part of a multi-agency pool and are administered by the California Public Employees’ Retirement System (“CalPERS”), which administers agent multiple-employer public employee defined benefit pension plans for municipal employees Statewide. CalPERS provides retirement, disability and death benefits to plan members and beneficiaries and acts as a common investment and administrative agent for participating public entities within the State, including the City. CalPERS plan benefit provisions and all other requirements are established by State statute and the CalPERS Board.
City employees are subject to different benefit levels based on their hire date. Benefit provisions as of July 1, 2025 for City employees are set forth below.
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City of Grover Beach
CalPERS Pension Plan – Summary of Benefit Provisions
Miscellaneous Plan
Employees Hired Before
January 1, 2013
Employees Hired On or After January 1,
2013 (Not Prior CalPERS Members)
Benefit Formula 2.5% @ age 55 2.0% @ age 62
Benefit Vesting 5 years of service 5 years of service
Benefit Payments Monthly for life Monthly for life
Minimum Retirement Age 50-63 52-67
Monthly Benefits as % of
Eligible Compensation
1.426% - 2.418% 1.0% - 2.5%
Employee Normal Cost Rate 8.0%(1) 7.75%(2)
Employer Normal Cost Rate(3) 14.18% + $756,010 7.87% + $11,535 Safety Plan – Police
Employees Hired Before
January 1, 2013
Employees Hired On or After January 1,
2013 (Not Prior CalPERS Members)
Benefit Formula 3.0% @ age 55 2.7% @ age 57
Benefit Vesting 5 years of service 5 years of service
Benefit Payments Monthly for life Monthly for life
Minimum Retirement Age 50 50-57
Monthly Benefits as % of
Eligible Compensation
3.0% 2.0% - 2.7%
Employee Normal Cost 12.0%(1) 13.75%(2)
Employer Normal Cost Rate(3) 24.33% + $585,922 13.76% + $15,400 Safety Plan – Fire
Employees Hired Before
January 1, 2013
Employees Hired On or After January 1,
2013 (Not Prior CalPERS Members)
Benefit Formula 0.5% @ age 55 2.0% @ age 55
Benefit Vesting 5 years of service 5 years of service
Benefit Payments Monthly for life Monthly for life
Minimum Retirement Age 50-55 50-55
Monthly Benefits as % of
Eligible Compensation
1.783% - 2.5% 1.426% - 2.0%
Employee Normal Cost 7.0% N/A
Employer Normal Cost Rate(3) $42,452 N/A
(1) The City does not make any portion of these employees’ required share. (2) The City does not make any portion of the employee contribution for employees hired on or after January 1, 2013. (3) The City pays a dollar amount (in addition to a percentage of compensation) which changes annually based on CalPERS’ actuarial valuation.
Source: City.
Contributions to the City’s pension plans consist of: (a) contributions by plan participants (i.e., employees); and (b) contributions by the City.
City employees who were hired on or after January 1, 2013 are subject to the California Public Employees’ Pension Reform Act of 2013 (“AB 340”), which was signed into law in 2012. Benefits for A-13
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participants who are subject to AB 340 are calculated on the highest average annual compensation over a consecutive 36-month period. Employees must pay at least 50% of the total normal cost rate and pensionable income is capped as noted below. In addition, retroactive benefits increases are prohibited, as are contribution holidays and purchases of additional non-qualified service credit.
City of Grover Beach
Pensionable Income Caps for Calendar Year 2026
(AB and Non-AB 340 Employees)
Employees Hired Before
January 1, 2013
(Non-AB 340 Employees)
Employees Hired On or After
January 1, 2013
(AB 340 Employees)
Maximum Pensionable Income $360,000 $191,679
Maximum Pensionable Income if
also Participating in Social Security N/A 159,733
Source: City.
Additional employee contributions, limits on pensionable compensation and higher retirement ages for new members as a result of the passage of AB 340 are expected to reduce the City’s unfunded pension lability and potentially reduce City contribution levels in the long term.
The City is required to contribute the actuarially determined remaining amounts necessary to fund benefits for its members. Employer contribution rates for all public employers are determined on an annual basis by the CalPERS actuary and are effective on the July 1 following notice of a change in the rate. The total minimum required employer contribution is the sum of: (i) the plan’s employer normal cost rate, which funds pension benefits for current employees for the upcoming Fiscal Year (expressed as a percentage of payroll); plus (ii) the employer unfunded accrued liability contribution amount, which funds pension benefits that were previously earned by current and former employees (billed monthly).
For Fiscal Year 2025, the required employer normal cost rates as a percentage of payroll were 14.13% for non-AB 340 Miscellaneous Plan employees and 7.87% for AB 340 Miscellaneous Plan employees. For Fiscal Year 2026, the required employer normal cost rates as a percentage of payroll are 14.18% for non-AB 340 Miscellaneous Plan employees and 7.96% for AB 340 Miscellaneous Plan employees.
For Fiscal Year 2025, the required employer normal cost rates as a percentage of payroll were 24.33% for non-AB 340 Safety Plan – Police employees and 13.76% for AB 340 Safety Plan – Police employees. For Fiscal Year 2026, the required employer normal cost rates as a percentage of payroll are 24.40% for non-AB 340 Safety Plan – Police employees and 13.99% for AB 340 Safety Plan – Police employees.
For Fiscal Year 2025, the required employer normal cost was $42,452 for Safety Plan – Fire employees.
For Fiscal Year 2026, the required employer normal cost is $45,922 for Safety Plan – Fire employees.
For Fiscal Years 2024 and 2025, the total required employer payment of the unfunded accrued liability for the City’s pension plans was $1,121,159 and $1,324,572, respectively, of which $1,059,393 and $1,250,301, respectively, was allocable to the General Fund. For Fiscal Year 2026, the total required employer payment of the unfunded accrued liability for the City’s pension plans is $1,776,897, of which $1,688,977 is allocable to the General Fund.
The City’s required contributions to CalPERS fluctuate each year and, as noted, include a normal cost component and a component that is equal to an amortized amount of the unfunded liability. Many assumptions are used to estimate the ultimate liability of pensions and the contributions that will be required to meet those obligations. The CalPERS Board of Administration has adjusted and may in the future further adjust certain A-14
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assumptions used in the CalPERS actuarial valuations, which adjustments may increase the City’s required contributions to CalPERS in future years. Accordingly, the City cannot provide any assurances that the City’s required contributions to CalPERS in future years will not significantly increase (or otherwise vary) from any past or current projected levels of contributions. CalPERS earnings reports for Fiscal Years 2015 through 2025 report investment gains (and losses) of approximately 2.4%, 0.6%, 11.2%, 8.6%, 6.7%, 4.7%, 21.3%, (6.1%),
6.1%, 9.3% and 11.6%, respectively. Future earnings performance may increase or decrease future contribution rates for plan participants, including the City.
CalPERS’ discount rate was lowered from 7.00% to 6.80% in fall 2021. Lowering the discount rate means that employers that contract with CalPERS to administer their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Active members hired after January 1, 2013 who were not previously CalPERS members will also see their contribution rates rise under AB 340.
Portions of the above disclosures are primarily derived from information that has been produced by CalPERS, its independent accountants and its actuaries. The City has not independently verified such information and neither makes any representations nor expresses any opinion as to the accuracy of the information that has been provided by CalPERS.
The annual comprehensive financial reports of CalPERS are available on CalPERS’ Internet website at www.calpers.ca.gov. The CalPERS website also contains CalPERS’ most recent actuarial valuation reports and other information that concerns benefits and other matters. The textual reference to such Internet website is provided for convenience only. None of the information on such Internet website is incorporated by reference herein. The City and the Municipal Advisor cannot guarantee the accuracy of such information. Actuarial assessments are “forward-looking” statements that reflect the judgment of the fiduciaries of the pension plans, and are based upon a variety of assumptions, one or more of which may not materialize or be changed in the future.
The City’s pension plans had a total net pension liability of $16,562,401 ($9,299,363 for the Miscellaneous Plan and $7,263,038 combined for the Safety Plan – Police and Safety Plan – Fire) for Fiscal Year 2025 (as of the measurement date of June 30, 2024). The net pension liability is the difference between the total pension liability and the fair market value of pension assets. The City’s total pension assets include funds that are held by CalPERS, and its net pension asset or liability is based on such amounts. For Fiscal Years 2024 and 2025, the City incurred pension plan pension expenses of $1,937,339 and $2,207,515, respectively.
A summary of principal assumptions and methods used to determine the total pension liability for the City’s pension plan for Fiscal Year 2025 (as of the measurement date of June 30, 2024) is shown below.
City of Grover Beach
Actuarial Assumptions for CalPERS Pension Plans
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68 Asset Valuation Method Market Value of Assets
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by entry age and service
Investment Rate of Return 6.90% net of pension plan investment and administrative expenses; includes projected inflation rate of 2.30%
Mortality Rate Table(1) Derived using CalPERS’ membership data for all funds (1) The mortality table used was developed based on CalPERS-specific data from a 2021 actuarial experience study.
Source: City.
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The recent funding history of the City’s pension plans (including summary totals for the Miscellaneous Plan and Safety Plans) is as follows:
City of Grover Beach
CalPERS Miscellaneous and Safety Pension Plans Combined Funding History Valuation
Date
Accrued
Liability
Market Value
of Assets(1)
Unfunded Accrued
Liability(2)
Funded
Ratio(3)
Annual Covered
Payroll
06/30/2022 $59,729,126 $42,583,328 $17,145,798 71.29% $5,457,207 06/30/2023 63,320,842 44,962,276 18,358,566 71.01 5,921,837 06/30/2024 66,990,947 49,026,206 17,964,741 73.18 6,290,894 (1) Reflects City’s share of market value of assets in multi-agency pools in which City participates. (2) Calculated by subtracting the Market Value of Assets from the Accrued Liability. (3) Calculated by dividing the Market Value of Assets by the Accrued Liability.
Source: City.
The table below presents the unfunded accrued liability of the City’s pension plans (including a summary total for the Safety Plans), calculated using the discount rate applicable to Fiscal Year 2025 (6.90%), as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.90%) or 1 percentage point higher (7.90%) than the Fiscal Year 2025 rate:
City of Grover Beach
Sensitivity of CalPERS Pension Plans Unfunded Accrued Liability to Changes in Discount Rate Discount Rate – 1%
(5.90%)
Applicable Discount
Rate (6.90%)
Discount Rate + 1%
(7.90%)
Miscellaneous Plan $13,824,681 $9,299,363 $5,574,361
Safety Plans – Police and Fire 11,569,222 7,263,038 3,741,185 Source: City.
For additional information relating to the City’s pension plan, see Note 7 to the City’s audited financial statements set forth in Appendix C.
No Other Post-Employment Benefits
The City does not provide post-employment benefits other than pensions to former employees.
Risk Management
The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees and natural disasters. The City is a member of the California Joint Powers Insurance Authority (the “CJPIA”), a joint exercise of powers agency with 123 public agency members that arranges and administers programs for the pooling of self-insured losses, arranges for group-purchased insurance and purchases excess insurance cover on behalf of its members.
Through the CJPIA, the City maintains the following coverages as of June 30, 2025:
• Workers compensation insurance up to statutory limits, with separate pools for public safety and general government claims.
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• General liability insurance up to $50 million, with separate pools for public safety and general government claims.
• All-risk property insurance for covered City properties in the amount of up to $50 million, with a $10,000 deductible ($2,500 for vehicle damage). This policy does not include earthquake or flood coverage for City properties.
Claims have not exceeded the City’s insurance coverage in any of the last three years.
No assurance can be given as to the adequacy of the insurance maintained now or in the future by the City to fund necessary repairs or replacement of any City property.
City General Fund Debt
General Obligation Bonded Indebtedness. More than two-thirds of the qualified voters in the City voting at a municipal election on November 4, 2014 approved the issuance of up to $48,000,000 of general obligation bonds (the “Authorization”). Pursuant to the Authorization:
• On March 25, 2015, the City issued and sold the City of Grover Beach (San Luis Obispo County, California) 2015 General Obligation Bonds (Street Improvements) in the aggregate principal amount of $5,000,000, of which $3,595,000 is currently outstanding. • On March 30, 2016, the City issued and sold the City of Grover Beach (San Luis Obispo County, California) 2016 General Obligation Bonds (Street Improvements) in the aggregate principal amount of $8,000,000, of which $5,940,000 is currently outstanding. • On December 20, 2017, the City issued and sold the City of Grover Beach (San Luis Obispo County, California) 2017 General Obligation Bonds (Street Improvements) in the aggregate principal amount of $15,000,000, of which $12,265,000 is currently outstanding. • On January 26, 2022, the City issued and sold the City of Grover Beach (San Luis Obispo County, California) 2022 General Obligation Bonds (Street Improvements) in the aggregate principal amount of $10,000,000, all of which is currently outstanding.
The Bonds are the fifth series of bonds issued under the Authorization. Immediately following the issuance of the Bonds, $5,000,000* of the Authorization will remain available for future issuance. Proceeds of bonds issued pursuant to the Authorization may be used, generally, for projects that improve and repair streets, increase street safety and promote economic and job growth.
State Loan. The City has entered into a loan agreement with the California Energy Resources Conservation and Development Commission, the proceeds of which were spent on an energy savings project (the “State Loan”). State Loan funds were disbursed on a reimbursement basis. The energy savings project funded by the State Loan was completed 2011, and payments thereon began in 2012. The State Loan, which is currently outstanding in the principal amount of $25,397, bears interest at the rate of 1.00% per annum and matures on December 22, 2026. The State Loan is being repaid from General Fund revenues.
Vehicle Purchase. In Fiscal Year 2023-24, the City entered into a lease-purchase agreement (the “Lease-Purchase Agreement”) with respect to six vehicles for the City’s Police Department. The LeasePurchase Agreement, which is currently outstanding in the principal amount of $545,159, bears interest at the rate of 3.095% per annum and matures on March 28, 2028. The Lease-Purchase Agreement is being repaid from * Preliminary; subject to change.
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General Fund revenues, although the City notes that the sole security for the Lease-Purchase Agreement is the vehicles themselves.
Building Lease. In Fiscal Year 2023-24, the City entered into a lease of office space in the City (the “Building Lease”). Under the Building Lease, the City pays a monthly rent amount equal to $9,565.46, rising to $9,852.42 on January 1, 2027. The Building Lease has a term that extends through December 31, 2027, with a 24-month extension which the City currently expects to exercise. Rent for the extension term, should the City elect to exercise it, will be $10,147.99 per month in 2028, rising to $10,452.43 per month in 2029. Payments under the Building Lease are made from a combination of General Fund and enterprise fund revenues.
Non-General Fund Obligations. The City’s water enterprise and wastewater enterprise have entered into obligations which are currently outstanding in the principal amount of $3,339,000 and $4,940,000, respectively, and mature in 2039 and 2045, respectively. Such obligations are payable solely from revenues of the City’s water enterprise fund and wastewater enterprise fund, respectively.
Redevelopment Dissolution
General. On December 29, 2011, the State Supreme Court upheld Assembly Bill 1x26 (“AB 1x26”), which dissolved redevelopment agencies in the State. AB 1x26 terminated the redevelopment functions of the Grover Beach Improvement Agency (the “Improvement Agency”) and resulted in the transfer of such functions to a successor agency (the City, referred to in this context as the “Successor Agency”), which was tasked with winding down the Improvement Agency’s redevelopment activities. Under AB 1x26, the Successor Agency cannot enter into new redevelopment projects or obligations and its assets can be used only to pay “enforceable obligations” in existence in mid-2011, when AB 1x26 was signed by the Governor (the “Enforceable Obligations”). The Successor Agency will receive incremental tax revenues in certain amounts that were previously allocated to the Improvement Agency, which amounts are expected to be sufficient to pay 100% (but no greater amount) of such Enforceable Obligations until they are paid in full, at which time the Successor Agency will be dissolved. An additional portion of incremental tax revenues generated within the boundaries of the Successor Agency and exceeding the amount needed to pay the Enforceable Obligations may be redirected to other taxing agencies, such as the County, school districts and the City. The Successor Agency’s activities are subject to review by an oversight board established under AB 1x26 (the “Oversight Board”).
Impact on the City. Pursuant to AB 1x26, the City elected to serve as the Successor Agency. AB 1x26 expressly provides that the Successor Agency is a separate legal entity from the City. The assets and the liabilities of the Improvement Agency were transferred to the Successor Agency, and such assets and liabilities are not assets and liabilities of the City. In addition, under the provisions of the AB 1x26, the City determined to assume the low and moderate income housing obligations, assets and powers of the Improvement Agency.
Although the City will not receive tax increment for purposes of such housing development as the Improvement Agency did, other funds, including General Fund funds, could be used by the City for those purposes (subject to City Council approval).
Since Fiscal Year 2012-13, certain expenditures of the Improvement Agency have been borne by the General Fund to the extent that they were not considered either Enforceable Obligations or prescribed administrative allowances for the operation and wind-down of the Improvement Agency’s activities. The City believes that the dissolution of the Improvement Agency has not had and will not have a material adverse impact on its General Fund.
Significant provisions of AB 1x26, related legislation and implementing actions of affected parties, including the Successor Agency, the Oversight Board, the County and the State Department of Finance, may be subject to legal challenge, statutory or administrative changes and other clarifications which could affect the impact of the dissolution of redevelopment on the City and its General Fund. While certain administrative costs previously charged to the Improvement Agency by the General Fund will no longer be supported by the A-18
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Successor Agency, certain property tax revenues formerly allocated to the Improvement Agency will now be received by the City’s General Fund.
Repayment of Moneys by the Successor Agency to City. From time to time since the inception of the Improvement Agency, the City had loaned General Fund moneys to the Improvement Agency for redevelopment purposes (collectively, the “Redevelopment Loan”). As of June 30, 2025 the amount of Redevelopment Loan due to the City was $29,869. There is no forma payment schedule and loan payments are made when moneys become available, with an annual interest rate of 0.5%.
Following the Successor Agency’s receipt of a Finding of Completion as required by AB 1x26 on April 26, 2013, the Successor Agency presented the Redevelopment Loan to the Oversight Board for review. The Oversight Board recognized the Redevelopment Loan as an Enforceable Obligation and approved the repayment thereof on the applicable Successor Agency Recognized Obligations Payment Schedules. The repayment is subject to the formula outlined in California Health and Safety Code Section 34191.4(b)(2). The Successor Agency’s Last and Final Recognized Obligations Payment Schedule was approved by the Department of Finance on January 12, 2021.
There can be no assurances that the Dissolution Act and/or subsequent implementing statutes will not interfere with the receipt by the City from the Successor Agency of the amounts contemplated to be received by the City pursuant to the Redevelopment Loan or otherwise.
The City does not believe that it has received material amounts from the Former Agency or the Successor Agency which may be asserted to be in violation of AB 1x26.
Industry and Employment
The County makes up the San Luis Obispo-Paso Robles-Arroyo Grande Metropolitan Statistical Area.
The unemployment rate in San Luis Obispo County was 4.3% in December 2025. This compares with an unadjusted unemployment rate of 5.5% for California and 4.4% for the nation during the same period.
The following table summarizes the civilian labor force, employment and unemployment in the County for 2024, the most recent calendar year for which information is available, and (solely for comparison purposes) for 2020. These figures are County-wide statistics and may not necessarily accurately reflect employment trends in the City.
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San Luis Obispo County
Civilian Labor Force, Employment and Unemployment
(Annual Averages)
2020 2024
Civilian Labor Force(1) 132,690 130,100
Employment 122,495 125,000
Unemployment 10,955 5,100
Unemployment Rate 7.7% 3.9%
Wage and Salary Employment(2)
Total Farm 4,900 5,000
Total Non-Farm 107,300 117,600
Total Private 84,700 95,600
Mining, Logging & Construction 8,400 9,000
Manufacturing 7,400 8,400
Wholesale Trade 2,500 2,500
Retail Trade 13,000 13,600
Transportation, Warehousing & Utilities 3,300 4,000
Information 1,100 1,100
Financial Activities 3,600 3,700
Professional and Business Services 10,400 10,900
Educational and Health Services 16,600 19,000
Leisure and Hospitality 15,300 19,600
Other Services 3,100 3,800
Federal Government 800 600
State Government 9,300 10,500
Local Government 12,500 10,900
Total, All Industries(3) 304,200 252,700
____________________
(1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(3) Data is not seasonally adjusted. Data may not add due to rounding.
Source: Labor Market Information Division of the California Employment Development Department.
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The following table shows the major employers in the County as of Fiscal Year 2025.
San Luis Obispo County
Major Employers
(Fiscal Year 2025)
Employer Name Industry Number of Employees
County of San Luis Obispo Government 2,932
Department of State Hospitals – Atascadero Healthcare 2,300 Cal Poly Partners Education 2,000
California Polytechnic State University Education 1,935 Pacific Gas & Electric Company Utility 1,900
California Men’s Colony Correctional Facility 1,349
Adventist Health Central Coast Healthcare 1,305
Lucia Mar Unified School District Education 1,234
Compass Health Healthcare 1,200
County Action Partnership Government 1,182
____________________
Source: County of San Luis Obispo Annual Comprehensive Financial Report for Fiscal Year ended June 30, 2025.
Commercial Activity
The number of establishments selling merchandise subject to sales tax and the valuation of taxable transactions in the City during the past five years for which data is available is shown in the following table.
City of Grover Beach
Taxable Retail Sales
Number of Permits and Valuation of Taxable Transactions (dollars in thousands)
Year
Retail Stores & Food Services Total All Outlets
Number of
Permits
Taxable
Transactions
Number of
Permits
Taxable
Transactions
2020 158 $103,840 319 $150,446
2021 173 104,178 291 168,738
2022 187 97,238 306 180,117
2023 188 89,390 311 167,442
2024 184 87,909 303 162,547
____________________
Source: California State Board of Equalization; Avenu Insights and Analytics.
Construction Activity
The following tables show a five-year summary of the valuation of building permits issued in the City.
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City of Grover Beach
Total Building Permit Valuations
Year Valuation
2021 $ 9,214,147
2022 6,767,346
2023 36,095,320
2024 48,879,163
2025 29,632,781
____________________
Source: City.
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APPENDIX B
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2025
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APPENDIX C
PROPOSED FORM OF OPINION OF BOND COUNSEL
Upon the issuance of the Bonds, Kutak Rock LLP, Bond Counsel, proposes to render its final approving opinion in substantially the following form:
June __, 2026
City Council
City of Grover Beach
Grover Beach, California
Re: $_____ City of Grover Beach (San Luis Obispo County, California) 2026 General Obligation Bonds (Street Improvements)
Members of the City Council:
We have acted as bond counsel in connection with the issuance by the City of Grover Beach (the “City”) of its City of Grover Beach (San Luis Obispo County, California) 2026 General Obligation Bonds (Street Improvements) issued in the aggregate principal amount of $_____ (the “Bonds”). The Bonds are being issued by the City under the Constitution and laws of the State of California, including but not limited to Article 1 of Chapter 4 of Part 3 of Division 4 of Title 4 of the Government Code of the State of California, commencing with Section 43600 thereof, and Section 53506 et seq. of the Government Code of the State of California, and Resolution No. 26-____ of the City Council of the City of Grover Beach, adopted on May 26, 2026 (the “Resolution”). Capitalized terms that are used herein and not defined have the meanings ascribed thereto in the Resolution.
We have examined the laws described in the preceding paragraph, the certified proceedings of the City in connection with the Resolution and such other documents, opinions and instruments as we have deemed necessary in order to render the opinions expressed herein. In such examination, we have assumed the genuineness of all signatures on original documents (other than signatures of the City) and the conformity to the original documents of all copies submitted to us. We have also assumed the due execution and delivery of all documents (other than with respect to the City) which we have examined where due execution and delivery are a prerequisite to the effectiveness thereof.
As to the various questions of fact material to our opinion, we have relied upon statements or certificates of officers and representatives of the City, public officials and others.
On the basis of the foregoing examination and assumptions and in reliance thereon and on all such other matters of fact as we deemed relevant under the circumstances, and upon consideration of the applicable law, we are of the opinion that:
1. The City is duly organized and validly existing as a general law city and municipal corporation under the Constitution and laws of the State of California, with the power to adopt the Resolution, perform the agreements on its part contained therein and issue the Bonds.
2. The Bonds are valid and binding general obligations of the City, payable solely from the sources provided therefor in the Resolution.
3. The City has the power, is obligated and in the Resolution has covenanted to levy ad valorem taxes upon all property within the City which is subject to taxation by the City, without limitation of rate or amount, for the payment of the Bonds and the interest thereon.
4. Under existing laws, regulations, rulings and judicial decisions, interest on the Bonds (including any original issue discount properly allocable to the owner of a Bond) is excludable from gross income for federal income tax purposes and is not a specific preference item for purposes of the federal alternative minimum tax imposed on C-2
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individuals. The opinions set forth in the preceding sentence assume the accuracy of certain representations of City and continuing compliance by the City with certain covenants designed to satisfy the requirements of the Internal Revenue Code of 1986, as amended (the “Code”) that must be met subsequent to the issuance of the Bonds. Failure to comply with such requirements could cause such interest to be included in gross income for federal income tax purposes or could otherwise adversely affect such opinions retroactive to the date of issuance of the Bonds. The City has covenanted to comply with such requirements. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. For example, we express no opinion with respect to any deduction for federal tax law purposes of interest on indebtedness incurred or continued by a holder of the Bonds or a related person to purchase or carry the Bonds. We are further of the opinion that, under the existing laws of the State of California, interest on the Bonds is exempt from current State of California personal income taxes. Interest on the Bonds may affect the federal alternative minimum tax imposed on certain corporations.
In rendering the opinions expressed in paragraph 4 above, we are relying upon representations and covenants of the City in the Resolution and in the Tax Compliance Certificate executed and delivered by the City in connection with the issuance of the Bonds concerning the use of the facilities financed with Bond proceeds, the investment and use of Bond proceeds and the rebate, if any, to the federal government of certain earnings thereon. In addition, we have assumed that all such representations are true and correct and that the City will comply with such covenants. We express no opinion with respect to the exclusions of the interest from gross income under Section 103(a) of the Code in the event that any such representations are untrue or the City fails to comply with such covenants. Except as stated above, we express no opinion as to any federal tax consequences of the receipt of interest on, or the ownership or disposition of, the Bonds.
Certain agreements, requirements and procedures contained or referred to in the Resolution, the Tax Compliance Certificate executed and delivered by the City in connection with the issuance of the Bonds and other relevant documents may be changed, and certain actions may be taken or omitted under the circumstances and subject to the terms and conditions set forth in such documents. No opinion is expressed herein as to any payment of interest on the Bonds if any such change occurs or action is taken or omitted to be taken upon the advice or approval of counsel other than ourselves.
Further, we note that the rights of the owners of the Bonds and the enforceability of the Bonds or the Resolution may be subject to bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other similar laws affecting creditors’ rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against governmental entities in the State of California. We express no opinion with respect to any indemnification, contribution, choice of law, choice of forum or waiver provisions contained in the foregoing documents, nor do we express any opinion with respect to the plans, specifications, maps, reports, or other engineering or financial details of the proceedings, or the validity of the ad valorem taxes levied upon any individual parcel in the City. Finally, we undertake no responsibility herein for the accuracy, completeness or fairness of the Official Statement or other offering material relating to the Bonds and express no opinion with respect thereto.
The opinions that are expressed herein may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. Our engagement with respect to the Bonds terminates on the date of their issuance.
Our opinion is limited to matters governed by the laws of the State and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction.
Respectfully submitted,
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APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
Upon issuance of the Bonds, the City proposes to enter into a Continuing Disclosure Certificate in substantially the following form:
$_____
CITY OF GROVER BEACH
(SAN LUIS OBISPO COUNTY, CALIFORNIA)
2026 GENERAL OBLIGATION BONDS
(STREET IMPROVEMENTS)
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (this “Disclosure Certificate”) is executed and delivered by the City of Grover Beach (the “City”) in connection with the issuance of the bonds captioned above (the “Bonds”).
The Bonds are being issued under the Constitution and laws of the State of California, including but not limited to, Article 1 of Chapter 4 of Part 3 of Division 4 of Title 4 of the Government Code of the State of California commencing with Section 43600 thereof, and Section 53506 et seq. of the Government Code of the State of California, under a resolution adopted by the City Council of the City on May 26, 2026 (the “Resolution”).
The City hereby covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule.
Section 2. Definitions. In addition to the definitions set forth above and in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms have the following meanings:
“Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4.
“Annual Report Date” means the date not later than April 1 after the end of each fiscal year of the City (currently June 30th).
“Dissemination Agent” means the City or any other Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation. As of the date of this Disclosure Certificate, A. M. Peché & Associates LLC is initially acting as Dissemination Agent. “Listed Events” means any of the events listed in Section 5(a). “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule. “Official Statement” means the final official statement dated June __, 2026 executed by the City in connection with the issuance of the Bonds.
“Participating Underwriter” means any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds.
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“Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.
Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing April 1, 2027 with the report for fiscal year 2025-26, provide to the MSRB in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If, by 15 business days prior to the Annual Report Date, the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b). The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder.
(b) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City shall provide (or cause the Dissemination Agent to provide) in a timely manner to the MSRB, in an electronic format as prescribed by the MSRB, a notice in substantially the form attached as Exhibit A.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and (ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.
Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following:
(a) The City’s audited financial statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) Unless otherwise provided in the audited financial statements filed on or before the Annual Report Date, financial information and operating data with respect to the City for the preceding fiscal year:
(i) Assessed value of taxable property within the jurisdiction of the City; (ii) If and to the extent such information is available from the County, property tax collection delinquencies for the City; and
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(iii) Principal amount of all outstanding general obligation debt of the City, and annual debt service on such general obligation debt for the preceding year. (c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the City shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
(d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference.
Section 5. Reporting of Significant Events.
(a) The City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties. (4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security.
(7) Modifications to rights of security holders, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the securities, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person.
(13) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material.
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(14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material (for the definition of “financial obligation,” see Section 5(e) below).
(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties (for the definition of “financial obligation,” see Section 5(e) below). (b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Resolution. (c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14), and (a)(15) of this Section 5 contain the qualifier “if material.” The City shall cause a notice to be filed as set forth in paragraph 5(b) above with respect to any such event only to the extent that the City determines the event’s occurrence is material for purposes of U.S. federal securities law.
(d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City.
(e) For purposes of subparagraph (a)(15) and (a)(16), “financial obligation” means a:
(i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term “financial obligation” shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.
Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB.
Section 7. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).
Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any D-5
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Dissemination Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice to the City.
Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and
(c) the proposed amendment or waiver either: (i) is approved by holders of the Bonds in the manner provided in the Resolution for amendments to the Resolution with the consent of holders; or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.
If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first annual financial information filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.
If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting principles shall be filed in the same manner as for a Listed Event under Section 5(b).
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 11. Default. If the City fails to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance.
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Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the City hereunder, and shall not be deemed to be acting in any fiduciary capacity for the City, the Bond holders or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. (b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder.
Section 13. Notices. Any notice or communications to be among any of the parties to this Disclosure Certificate may be given as follows:
To the City: City of Grover Beach
154 South Eighth Street
Grover Beach, California 93433
(805) 473-4567
To the Dissemination Agent: A. M. Peché & Associates LLC 1722 Locksley Drive
Lathrop, California 95330-8432
Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notices or communications should be sent.
Section 14. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Section 15. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.
Dated: June __, 2026
CITY OF GROVER BEACH
By:
City Manager
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A. M. PECHÉ & ASSOCIATES LLC, as
Dissemination Agent
By:
Albert M. Peché, Manager
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EXHIBIT A
NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: City of Grover Beach (the “City”)
Name of Bond Issue: City of Grover Beach
(San Luis Obispo County, California)
2026 General Obligation Bonds
(Street Improvements)
Date of Issuance: June __, 2026
NOTICE IS HEREBY GIVEN that the City has not provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Certificate, dated June __, 2026. The City anticipates that the Annual Report will be filed by ____________________.
Dated: __________, 20___
[DISSEMINATION AGENT]
By
Name
Title
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APPENDIX E
DTC AND THE BOOK-ENTRY-ONLY SYSTEM
The information in this section concerning DTC and DTC’s book-entry only system has been obtained from sources that the City and the Authority believe to be reliable, but the City and the Authority take no responsibility for the completeness or accuracy thereof. The following description of the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, premium, if any, accreted value and interest on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC.
1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC.
One fully-registered Bond will be issued for each maturity of the Securities in the aggregate principal amount of such maturity, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.
2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC is rated “AA+” by Standard & Poor’s. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records.
Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction.
Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the E-2
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actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
6. Redemption notices will be sent to DTC. If less than all of the Securities within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).
8. Principal, redemption price and interest payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, redemption price and interest payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
9. If applicable, a Beneficial Owner will give notice to elect to have its Securities purchased or tendered, through its Participant, to tender/remarketing agent, and will effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to tender/remarketing agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Securities to tender/remarketing agent’s DTC account.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Bonds are required to be printed and delivered.
11. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bonds will be printed and delivered to DTC. 4938-5081-9471.5
APPENDIX F
SAN LUIS OBISPO COUNTY QUARTERLY REPORT OF INVESTMENTS