Grover Beach City Council
June 8, 2026

CITY OF GROVER BEACH

CITY COUNCIL STAFF REPORT
Agenda Item No. 5
Placement: Business
Meeting Date: June 8, 2026

TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Director of Administrative Services SUBJECT: FY 2026-27 Proposed Budget and FY 2026-31 Capital Improvement Program

RECOMMENDATION
Review the FY 2026-27 Proposed Budget and FY 2027-31 Capital Improvement Program and provide direction to staff to finalize the FY 2026-27 budget for adoption at the June 22, 2026 City Council meeting.

BACKGROUND
The City Council adopted the FY 2025-27 two-year budget on June 23, 2025. The budget for the second year (FY 2026-27) is a projection and incrementally modified to adjust the City’s fiscal position as it adapts to changing conditions in revenues and expenditures.

As a result of this review, staff has developed a Proposed Budget for FY 2025-27 with a total citywide budget of $29.5 million, including $19.4 million in the City’s General Fund, $6.9 million in Enterprise Funds (Water and Wastewater), and $2.1 million in Special Revenue Funds. The five-year Capital Improvement Program (CIP) includes $1.6 million in funding for capital projects which includes $50,000 from the General Fund and $240,000 from Enterprise Funds though does not include carryover funds. The FY 2026-27 Proposed Budget includes a balanced budget in the General Fund with a small surplus of $3,511 that maintains current service levels and produces ending reserves of 27% of operating expenditures compared with the Council policy goal of 25% providing sufficient reserves for emergencies or unforeseen events or needs.

The City Manager’s Letter of Transmittal and the City Overview section of the budget document provides an overview of accomplishments over the past year and implementation of Council Goals and Priorities for FY 2026-27 Proposed Budget. Although the City continues to navigate ongoing fiscal challenges, the City’s strong reserves and ongoing efforts to contain costs enable a balanced budget with no impacts to staff or key programs. Revenue estimates are generally on track with the budget update as presented to Council on May 11 and highlighted below:

General Fund Revenues
• Property Tax – Property tax revenues have been a consistent revenue source for the City with annual increases of 5% over the past several years. Based on data from the San Luis Obispo County Tax Assessor’s Office along with the timing of new developments in FY Staff Report: FY 2026-27 Proposed Budget and FY 2026-2031 Capital Improvement Program Page 2 June 8, 2026

2026-27, staff is estimating a continued annual property tax revenue increase of 5% with total property tax revenue for FY 2025-26 projected to be $6.85 million. • Sales Tax - Projections use reports from the City’s sales tax consultant and local data to assess the ongoing condition of taxable sales in Grover Beach. For FY 2026-27, staff estimate a slight increase of 2.5% or nearly $6.2 million. • Transient Occupancy Tax (TOT) - TOT revenues are projected to total approximately $1.2 million in FY 2026-27 which is a continued increase from previous years. However, TOT is less than originally projected at mid-year largely due to the delayed opening of the hotel at 950 El Camino Real given construction delays. Staff anticipate a December 2026 hotel opening rather than the original opening date in Spring 2026. • Cannabis Tax – Staff anticipates cannabis tax revenues to remain flat for FY 2026-27 compared with the current year based on market conditions with total cannabis tax revenues of $1.06 million.
• Franchise Tax – Franchise fees for FY 2025-26 are estimated to be on budget at $965,000.

For FY 2026-27, slight increases given the Waste Connections rate increases which will increase revenues to an estimated $1.02 million.

General Fund Expenses
In terms of expenditures, staff is recommending small adjustments to the FY 2026-27 Proposed Budget that will continue to meet community needs in alignment with the adopted Council Goals and Priorities. Costs for employee salaries and benefits for next year include approved Cost of Living Adjustments of 3% for all employee bargaining units and groups. The Proposed Budget includes a General Fund contribution to the City’s Capital Improvement Program (CIP) of $50,000 for a future street maintenance project.

The Proposed Budget also includes $230,000 in funding for the Equipment Reserve Fund (ERF), which is a decrease of $124,000 compared to $354,000 originally budgeted in the FY 2025-27 two-year budget. Although this amount is less than depreciation for existing assets under the City’s Equipment Replacement Policy, savings in FY 2025-26 is expected to make up this difference and there should be no long-term issue with funding equipment replacement. The funding amount included in the Proposed Budget for the Council’s consideration represents a one-time departure from the ERF policy to assist in balancing next year’s budget with full funding programmed for the following years.

The Proposed Budget recommends $9,697 in limited General Fund increases that are necessary for City operations:

Department BAR Name Amount
Public Works Facilities Operating Supplies

1,865
Public Works Street Supplies

2,000
Police SLO Sheriff Data Access Costs

5,832
Total $9,697
Staff Report: FY 2026-27 Proposed Budget and FY 2026-2031 Capital Improvement Program Page 3 June 8, 2026

Overall, the proposed General Fund budget for FY 2026-27 will be balanced with revenues and expenditures equaling $19.4 million with an estimated surplus of $3,511. The budget will produce ending reserves of approximately 27% of operating expenditures or $5.2 million compared with the Council’s reserve policy of 25% of operating expenditures.

Water Fund
For FY 2026-27, staff are recommending minimal changes to the Water Fund budget. Given the expiration of the current 2021 rate structure on June 30, Water Fund revenues for FY 2026-27 will be flat with total revenues of approximately $4.5 million. Growth in Water Fund expenses generally are following the same trends as outlined in General Fund expenses. However, a significant issue affecting the Water Fund is Lopez Lake litigation expenses given the federal endangered species litigation against the County of San Luis Obispo by environmental groups.

To date, the City has incurred nearly $500,000 in unbudgeted legal costs paid to the County given the City’s contractual amount of Lopez Lake water with additional legal expenses anticipated.

Additionally, the current water rate structure creates a structural deficit in funding operations and maintenance long term and does not provide adequate funding for needed capital projects to the water system infrastructure. Staff will return to the Council to discuss the need for an updated water rate structure in the next fiscal year.

Wastewater Fund
The City’s revised rate schedule for the Wastewater Fund has been in effect since July 1, 2025.

This includes nearly $250,000 additional revenue from user fees which will assist in paying for ongoing maintenance and expenses. Additionally, the rate increase has enabled the City to move forward with $5 million bond financing for the cost of sewer upgrades which are currently underway and will continue in future years. As a result of this revised rate structure, the Wastewater Fund is healthy and provides sufficient funding for operations and maintenance and capital projects.

Interfund Transfer Between General and Wastewater Funds In the final reconciliation of the West Grand Avenue Streetscape Project expenses, staff found that costs of sewer work related to the project were paid for by the General Fund inadvertently instead of the Sewer Fund. Currently, $704,639 is owed from the General Fund to the Wastewater Fund with two payments of $368,252 remaining (one in FY 2025-26 and the final payment in FY 2026-27). To correct this miscoding of costs, the Proposed Budget includes a modification to the existing payments to $202,358 per year to offset the amount owed to the General Fund for the sewer project for the Council’s consideration. This will not change the timing of full repayment of the loans by FY 2026-27.

FISCAL IMPACT
There is no direct fiscal impact from this agenda item as the budget will be adopted at a subsequent meeting. The FY 2026-27 Proposed Budget contains comprehensive financial information at the fund level (Fund Information section) and departmental and program information (Department Budgets).

Staff Report: FY 2026-27 Proposed Budget and FY 2026-2031 Capital Improvement Program Page 4 June 8, 2026

ALTERNATIVES
The Council has the following alternatives to consider:

1. Review the FY 2026-27 Proposed Budget and FY 2027-31 Capital Improvement Program and provide direction to staff to finalize the FY 2026-27 budget for adoption at the June 22, 2026 City Council meeting; or

2. Provide alternative direction to staff.

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

ATTACHMENTS
FY 2026-27 Proposed Budget
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
FY 2026-27 BUDGET
Attachment 1

TABLE OF CONTENTS

1.0 City Overview4

1.1 City Manager's Letter of Transmittal5

1.2 City Council Goals9

1.3 Major City Goals and Workprograms 10

1.4 City Council 16

1.5 Executive Team 17

1.6 Organizational Chart 18

1.7 Budget Timeline 19

1.8 Profile of Grover Beach 20

1.9 Demographics 23

2.0 Financial Trends 28

2.1 Revenue Trends 29

2.2 Expense Trends 34

3.0 Budget Overview 37

3.1 Budget Summary 38

3.2 Capital 45

3.3 Transfers In 46

3.4 Transfers Out 47

4.0 Department Budgets 48

4.1 Administrative Services 49

4.2 City Manager's Office 56

4.3 Community Development 63

4.4 Police Department 70

4.5 Public Works 77

4.6 Non-departmental 85

5.0 Funds Overview 89

5.1 General Fund 90

5.2 Street Construction Designated Fund (K-14) 92

5.3 Gas Tax Fund 93

5.4 Road Maintenance and Rehabilitation Account 94

5.5 Local Transportation Fund (LTF) 95

5.6 Public Safety Grant Fund 96

5.7 Parks Construction Fund 97

5.8 Transportation Development Impact Fee Fund 98

5.9 Law Enforcement Development Impact Fee Fund 99

5.10 Administrative Development Impact Fee Fund 100

5.11 Fire Development Impact Fee Fund 101

5.12 Stormwater Development Impact Fee Fund 102

5.13 Wastewater Development Impact Fee Fund 103

5.14 Parks Facilities Development Impact Fee Fund 104

5.15 Recreation Facilities Development Impact Fee Fund 105

5.16 Water Development Impact Fee Fund 106

5.17 Subsidized Taxi Fund 107

5.18 CDBG - Non Entitlement Fund 108

5.19 Home Grant Fund 109

5.20 State Mandated ADA Fund 110

5.21 Capital Projects Fund 111

5.22 Underground Utilities Fund 112

5.23 Water Fund 113

5.24 Water Conservation Fund 114

5.25 Wastewater Fund 115

6.0 CIP 116

6.1 CIP Plan 117

7.0 Appendix 162

7.1 Budget Policies 163

7.2 Gann Limit Calculation 167

7.3 Glossary 168

CITY OVERVIEW
Table of Contents 1.0 City Overview
City of Grover Beach Budget | 2026-27 Page 4
City Manager’s Letter of Transmittal
Honorable Mayor and Council Members:

I am pleased to present the total budget of $29.51M for the City of Grover Beach for the upcoming Fiscal Year 2026-27 including a General Fund budget of $19.4M. As we close our current fiscal year 2025-26, I would like to take a moment to recognize our progress and accomplishments in addressing community needs over the past year and implementing the Council’s policy direction, while acknowledging both current and future challenges.

Over the past fiscal year, the impacts of economic uncertainty and volatility combined with higher inflation have been difficult for the local business community, residents and the City. However, the City has made great strides in building an even stronger and better community in alignment with Council Goals and Priorities. Over 90% of the tasks identified for FY 2025-26 Council Goals and Priorities at mid-year were completed or in progress. Infrastructure improvements are very important for the City and a long-awaited sewer upgrade project began this past year with the new sewer rate structure adopted by the Council in June 2025. The City also initiated a water supply study this year to assess the City's future water supply and demand and develop a long-term strategy for water resiliency. Street improvements and maintenance are a long-standing priority in Grover Beach and the City will resume Measure K-14 street repair projects in the next fiscal year building on our achievement of improving more than 70% of local streets since the passage of Measure K-14. Lastly, the Ramona Garden Park improvement project is nearing completion with a much-improved park for the community to enjoy including a state-of-the-art playground and a band shell and amphitheater. This $4 million project is fully funded with a Community Development Block Grant, development impact fees for parks projects, and community donations without any General Fund dollars needed.

Despite economic volatility, there continues to be a high level of development activity throughout the city as property owners improve and develop their properties. The City received 68 development applicants in 2025, the highest number in over 10 years and a 30% increase from the previous year. Approximately 90 new multi-family housing units have recently been completed along West Grand Avenue including 53 units of affordable housing at the Cleaver and Clark Commons project by People's Self-Help Housing and the Housing Authority of San Luis Obispo. Another 265 multi-family housing units are in the development pipeline as reflected in submitted development applications and the City has met 98% of its Regional Housing Needs Allocation (RHNA) with the current Housing Element. The level of development activity reflects a strong degree of investment in Grover Beach and confidence in the city's continued growth and development and alignment with community visions and plans. However, State housing mandates and new laws enabling housing production are key factors in guiding current and future development activity and the next Housing Element update will likely include a much higher RHNA that will have to be planned for within the city over the next several years.

Public safety is a core responsibility of local government and we have made substantial progress this past year through the work of our Police Department and Five Cities Fire Authority. The Police Department has filled vacant Police Officer positions, worked with County Behavioral Health to regularly ride with patrol units, received $330,000 in grant funding for DUI saturation patrols, traffic enforcement, and other duties, upgraded technology resources including drones and cameras, and expanded community outreach activities. Our Police Department does a tremendous job keeping Grover Beach safe with a reduction of overall crime by 23% in 2025 compared with 2024 with burglary down 77% and theft down 46%. The City is a member of the Five Cities Fire Authority (FCFA) along with Arroyo Grande and works with FCFA to ensure responsive and effective fire and emergency service to our community.

FCFA responded to over 1,500 calls in Grover Beach in 2025 with an average response of approximately five minutes. FCFA also provides fire and emergency medical service to the Oceano community through a contract with the County of San Luis Obispo which helps provide needed funding to maintain three 24x7 engine companies for our service area. FCFA has also completed a Standards of Cover analysis that will inform development of a five-year strategic plan for the agency to serve as a roadmap for future improvements.

Lastly, community engagement and trust is a Council priority and has been at the forefront of City activities over this past year. These activities include periodic Council and staff engagement events, installation of informational boards at parks, mailers sent out to nearby residents for proposed development projects and to all residents on the water supply study, and holding community forums on key initiatives such as updating the City's Circulation Element and the water supply study. The City also conducted its biennial community survey this year which found that residents expressed satisfaction with the quality of life in Grover Beach (70%) and with City services (74%) and pride in being a resident of Grover Beach (87%). The top issues facing the city identified in the survey were Table of Contents 1.1 City Manager's Letter of Transmittal

transportation/traffic/roads/infrastructure, overpopulation/controlling growth/development, and housing affordability. Street repair and maintenance and police and fire services were identified as the most important City services with the highest satisfaction ratings expressed for police and fire services and festivals and community events.

In addition to these achievements, the City has continued its prudent fiscal stewardship maintaining a strong financial foundation over this past year. The City’s revenues continue to be strong overall though increases are slowing compared to prior years. Property tax is the City’s highest revenue source with modest sales tax increases anticipated. Transient occupancy tax (hotel tax) is now the City's third-highest revenue source followed by the cannabis tax. The City’s revenues coupled with the strong fiscal management of City departments is projected to produce a year-end General Fund surplus of approximately $3,511 in FY 2026-27 after $9,697 in proposed budget augmentations. Ending reserves will total approximately $5.2M or 27% of operating expenditures, which is higher than the Council’s policy of maintaining reserves of 25% of operating expenditures and provides sufficient reserves for emergencies or unforeseen needs given continued economic uncertainty.

FY 2026-27 Budget Overview
The budget for the fiscal year 2026-27 reflects a balanced budget, service stability, and healthy reserves. The City continues to make significant community investments made possible by projected General Fund revenues as highlighted below:

Property Tax - Property tax revenues have been a consistent revenue source for the City with annual increases of 5% over the past several years. Based on data from the San Luis Obispo County Tax Assessor’s Office along with the timing of new developments in FY 2026-27, staff is estimating a continued annual property tax revenue increase of 5% with total property tax revenue for FY 2025-26 projected to be $6.85M.

Sales Tax - Staff use projections from the City’s sales tax consultant and local data to assess the ongoing condition of taxable sales in Grover Beach. For FY 2026-27, staff estimates a slight increase of 2.5% or nearly $6.2M.

Transient Occupancy Tax (TOT) - TOT is projected to increase to $1.22M which is a continued increase from previous years.

However, TOT is less than originally projected largely due to the delayed opening of the hotel at 950 El Camino Real given construction delays. Staff anticipate a December 2026 hotel opening rather than the original opening date in Spring 2026.

Cannabis Tax - Cannabis tax revenues for FY 2026-27 are projected to $1.06M which is flat compared with the current year based on market conditions.

Franchise Tax - Franchise fees for FY 2026-27 are projected to be $1.02M include the transoceanic fiber optic cable revenue of $200,000.

In terms of expenditures, the General Fund budget for FY 2026-27 provides funding for current service levels to meet community needs in alignment with the Council Goals. Aside from $9,697 in small operational cost increases for the Public Works and Police departments, there are no proposed increases in funding for services and programs beyond the approved 3% cost of living compensation adjustments for City employees. The budget includes a General Fund contribution to capital improvements of $50,000 for a future street improvement project as well as $230,000 in transfers for allocation to the Equipment Replacement Fund. The City's Capital Improvement Program (CIP) is proposed to include $6.3M in funding for FY 2026-27 for eight projects primarily for street repairs including local residential streets and North 4th Street. Given funding deficiencies in the Water Fund, the CIP does not include funding for several necessary capital projects for the City's water system which will need to be addressed in a future water rate study.

Overall, the proposed General Fund budget for FY 2026-27 is balanced with revenues of $19.39M and expenditures of $19.39M for a surplus of approximately $3,511. The budget is anticipated to produce ending reserves of approximately 27% of operating expenditures compared with the Council’s reserve policy of 25%. This level of reserves reflects the City’s cautious fiscal management and provides sufficient reserves for emergencies or unforeseen needs given economic uncertainties. Long-term projections show a balanced budget for the General Fund's operating and capital expenditures, though it will be important to maintain sufficient reserves.

Table of Contents 1.1 City Manager's Letter of Transmittal City of Grover Beach Budget | 2026-27 Page 6
FY 2024-25 FY 2025-26  FY 2026-27

ACTUAL ESTIMATED BUDGET
Begining Reserves $8,805,605 $6,818,676 $5,423,466
Revenues $21,234,005 $21,528,166 $19,388,681
Exependitures $18,837,028 $21,501,574 $19,385,170
Annual Surplus/(Deficit) $2,396,977 $26,592 $3,511
Other Sources and Uses ($4,177,743) ($1,443,358) ($202,358) ERF Balance ($204,551)
Ending Reserves $6,818,676 $5,401,910 $5,212,760
As expressed throughout this letter, the budget for FY 2026-27 represents a continued investment in City resources to implement Council Goals and address community needs while maintaining strong fiscal management including maintaining sufficient reserves.

The City has been cautious and prudent in our budgeting approach which enables us to deliver responsive and effective services to our community within available funding and ensure financial sustainability. However, there continue to be uncertainties and challenges facing the City described below, including the overall economic environment, long-term infrastructure needs, and a continued sense of community in a time of change and uncertainty.

Overall Economic Environment
The City is in a relatively positive position over the next several years and projected to have a break-even balanced budget between revenues and expenditures to meet operational and service needs. Reserves are projected to remain at or above the Council's policy of 25% of operating expenditures before dropping slightly below this level in FY 2030-31. However, despite this relative stability, the City faces challenges in containing costs largely outside the City’s control including increases in healthcare benefits, worker’s compensation insurance, unanticipated legal expenses, and other factors. These challenges create additional pressures on flattening revenues and balancing the City’s budget given macroeconomic uncertainties and volatility. The City is facing rising and variable costs of labor and services over the long term which will require careful planning and cautious budgeting. We are also mindful that some members of our community are particularly struggling with rising costs of living and the City will continue to show a high degree of empathy and support for community members as we navigate economic volatilities.

Long-Term Infrastructure Needs
The City has made extensive progress in addressing infrastructure needs particularly with street improvements. Following passage of Measure K-14 in 2014, the City has repaired nearly 320 blocks representing over 70% of streets in the Measure K-14 program. The City's pavement condition index rating street quality on a 0-100 scale has increased from 39 in 2014 to 69 in 2025 with a goal of ultimately achieving a rating of 80. The next Measure K-14 project will be underway this summer with a project planned every year until the completion of the program in 2030. However, $2M annually is estimated to be needed to maintain these streets once completed along with over $20M needed to fully fund improvements and repairs on all Measure K-14 streets and major arterial streets in the city. With passage of the updated sewer rate structure in 2025, the City's Wastewater Fund is now healthy and provides for sufficient funding for operations and maintenance and needed capital projects over the next several years. On the other hand, the City's Water Fund has significant limitations as the current water rate structure from 2021 does not provide sufficient funding for system operations, maintenance, needed capital projects, and potential acquisition of additional water supply. A new water rate structure will be needed in 2027 to meet these needs and address identified issues in the City's water billing. Lastly, the City faces growing maintenance and space needs in its public facilities several of which are over 60 years old. The Corporation Yard and the Community Center are at the end of their operational life and significant deficiencies exist at the Police Station and City Hall. The Council previously concluded to plan for new construction as opposed to rehabilitation of aging facilities with an initial cost estimate of $20M though this estimate is now three years old and was low compared with other agencies.

Table of Contents 1.1 City Manager's Letter of Transmittal

Sense of Community in a Time of Change and Uncertainty
Over the past few years, we have seen uncertain economic conditions, as well as strong political and societal divisions, exposing divisions throughout the country. These trends at a broader national and state level can often enter into the local landscape as community members discuss and debate topics such as governance, community representation, and the role and results of government in local communities. The City strives to model civility and respect in navigating these challenges while also improving where needed. It is imperative that we continue to foster a continued sense of community to build an even stronger Grover Beach and maintain our practices of responsible governance and civic leadership while finding ways to deepen our engagement with the community we serve.

Conclusion
Grover Beach is a vibrant, resilient, and caring community and our City's purpose is to enhance the quality of life for those who live, work, and play in Grover Beach. The FY 2026-27 budget embodies this sense of opportunity and investment to help our community continue to flourish and prosper despite the economic challenges we face. I would like to recognize the outstanding work of our City staff in putting the FY 2026-27 budget together, particularly our Administrative Services Director Nick Szamet and Assistant City Manager Kristin Eriksson. We will continue to address challenges and pursue opportunities with the City Council’s leadership and City staff’s execution and work with our community to create an even stronger Grover Beach for years to come.

Respectfully submitted,
Matthew Bronson
City Manager
Table of Contents 1.1 City Manager's Letter of Transmittal City of Grover Beach Budget | 2026-27 Page 8
City Council Goals and Priorities for FY 2026-27
Since 2017, the City Council has conducted an annual goal-setting process to determine the highest priorities for the City organization to implement in the upcoming fiscal year. On March 3, 2025, the Council held a workshop to discuss governance norms, long-term city vision, and goals and priorities for FY 2025-27. After agreeing upon governance norms, the Council considered, discussed and adopted broad multi-year goals as well as biennial Council priorities for FY 2025-27. The Council then affirmed the multi-year goals and updated its biennial Council priorities on March 9, 2026, as listed below:

Broad Multi-Year Goals. These represent goals that the City’s budget is geared toward and what provide a foundation for the day-to-day work of the City.

Public Safety and Community Services –
Provide a range of services that foster a sense
of safety, enjoyment and well-being for
community members.

Economic Development and Housing – Support
businesses attraction and retention,
revitalization of commercial areas, and
development of housing opportunities.

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

Financial and Organizational Sustainability –
Ensure fiscal responsibility, organizational
viability and promote a culture of innovation
and customer service.

Biennial Council Priorities. These represent those
goals that the Council selected for focused attention
and resources in the next two years.

Water and Sewer Infrastructure and Needed
Resources – Plan for the future, ensure
appropriate funding levels, address aging infrastructure and educate the community on the systems’ needs.

Community Engagement and Rebuilding Community Trust and Civility in Public Discourse – Provide education to the community, use various methods of communication, proactively initiate communication and broaden the audience for City communications.

Street Improvements and Maintenance - Continue work toward completion of residential street improvements funded by Measure K-14 and maintain improved streets.

These goals were formally adopted by the Council on March 24, 2025 and updated on March 9, 2026. The Council is to be commended for its continued strategic focus on key priority areas to drive City resources and investments to best address community needs. Building on the Council’s goals, staff has developed work programs for FY 2026-27 to specify what will be done over the the next fiscal year in carrying out those goals. Staff will begin implementing these work programs in the new fiscal year and providing progress reports to Council throughout the year.

Table of Contents 1.2 City Council Goals

City Council Goals and Priorities
Multi-Year Goals
Major Plans and Initiatives Lead Department
Public Safety and Community Services: Adopt a multi-year strategic plan for the Five Cities Fire Authority to ensure sufficient fire services response and address community risk reduction
Five Cities Fire Authority
Public Safety and Community Services: Continue focus on traffic issues by adding an additional motorcycle officer, conducting grant-related enforcement, and reducing traffic collisions.

Police Department
Public Safety and Community Services: Begin work on a two-year Police Department accreditation process through the California Police Chief’s Association Police Department
Public Safety and Community Services: Continue delivering current and new community events to enhance community quality of life
City Manager’s Office
Community Services Division
Public Safety and Community Services: Expand partnerships for recreation and community programming including a South County sports program with the SLO County YMCA.

City Manager’s Office
Community Services Division
Economic Development and Housing: Initiate development of the 7th Cycle Housing Element (2028-2036) following release of the updated Regional Housing Needs Allocation (RHNA).

Community Development
Department
Economic Development and Housing: Initiate an update to the City’s Economic Development Strategy to assess economic and real estate market conditions affecting the city and identify potential improvements and efforts for the City to focus on.

Community Development
Department
City Manager’s Office
Economic Development and Housing: Expand tourism and visitor opportunities in Grover Beach through hotel development, short-term rental permitting changes, Visit Grover Beach marketing efforts, and collaboration with Visit SLO CAL.

City Manager’s Office
Community Development
Department
Community Infrastructure: Complete the Circulation Element Update to guide the planning, design, and improvement of the City’s transportation to keep pace with development activity and community needs.

Community Development
Department
Public Works Department
Community Infrastructure: Continue to work on potential locations and funding plans for new or renovated City facilities with a priority on the Police Station and Corporation Yard.

Public Works Department
Table of Contents 1.3 Major City Goals and Workprograms City of Grover Beach Budget | 2026-27 Page 10
Major Plans and Initiatives Lead Department
Financial and Organizational Stability: Develop FY 2027-29 two-year budget to address community and organizational needs within available resources including update of the Council Goals and Priorities.

Administrative Services Department
Financial and Organizational Stability: Work with City employee bargaining and unrepresented groups on new memoranda of understanding and resolutions affecting employee compensation, work conditions, and other factors.

City Manager’s Office
Financial and Organizational Stability: Conduct Cost Allocation study to better assess and allocate City costs and charges for services and across funds.

Administrative Services Department
Table of Contents 1.3 Major City Goals and Workprograms

CITY COUNCIL PRIORITY: WATER AND SEWER

INFRASTRUCTURE AND NEEDED RESOURCES
Major Plans Lead Department
Key Milestones for
FY 2026-27
Budget
Allocation
Complete water supply
study and present results to
Council
City Manager's
Office/ Public
Works Department
Continue work to complete a
water supply study, with
regular public input
opportunities
Present preliminary results
to the Council in summer/fall
2026
Present final results to the
Council in late 2026 and
seek policy direction on next
steps
$300,000 from
Water Fund
Develop water rate study for
updated rate structure,
given the expiration of the
existing rate structure on
June 30, 2026
Administrative
Services
Department
Execute consultant contract
for rate study following
completion of water supply
study
Initiate rate study process
and conduct community
engagement on water rate
structure
Conduct Proposition 218
Hearing on new water rate
structure
$40,000 from
Water Fund
Implement sewer
improvement project CIP
5003
Public Works
Department
Design and construct Front
Street Lift Station project $270,000 from
Wastewater
Fund
Implement sewer
improvement project CIP
5005
Public Works
Department
Design and construct Oak
Park Lift Station project
$240,000 from
Wastewater
Fund
Table of Contents 1.3 Major City Goals and Workprograms City of Grover Beach Budget | 2026-27 Page 12
CITY COUNCIL PRIORITY: REBUILDING COMMUNITY

TRUST, COMMUNITY ENGAGEMENT AND CIVILITY IN

PUBLIC DISCOURSE
Major Plans and
Initiatives
Lead Department
Key Milestones for
FY 2026-27
Budget Allocation
Conduct Circulation
Element Update public
engagement
Community
Development
Department
Conduct public outreach
related to proposed
policies and programs in
the Circulation Element
update
Staff Resources
Develop “Grover Beach
101” community outreach
sessions with initial focus
on planning and building
City Manager’s
Office/ Community
Development
Department
Develop session
framework and potential
schedule
Implement initial sessions
and review results for
future iterations
Staff Resources
Continue regular
community engagement
events
City Manager's
Office
Host periodic “Coffee with
Council” events
Conduct outreach for the
water rate study, including
an online survey,
informational webpage,
mailer, informational
sessions
Staff Resources
Continue business
outreach efforts in
conjunction with the South
County Chambers of
Commerce
City Manager’s
Office
Hold scheduled business
outreach roundtable
meetings in partnership
with the Chamber
Conduct issue- or topic-specific business outreach
Staff Resources
Table of Contents 1.3 Major City Goals and Workprograms

CITY COUNCIL PRIORITY: STREET IMPROVEMENTS

AND MAINTENANCE
Major Plans and
Initiatives
Lead Department
Key Milestones for
FY 2026-27
Budget Allocation
Implement street repair
project CIP 2295-17
Public Works
Department
Begin and complete
construction for CIP 2295-17
(N. 9 Street and portions of
Brighton Avenue, N. 11th
and N. 12th Streets and
Ramona Avenue)
$2.9M in Measure
K-14 Funds
Implement street repair
project CIP 2295-19
Public Works
Department
Start construction for CIP
2295-19 (Portions of
Ramona Avenue, Brighton
Avenue, N. 7th Street, N. 6th
Street, N. 2nd Street, and
N.5th Street)
$600,000 in
Measure K-14
Funds
Implement street repair
project CIP 2285
Public Works
Department
Finalize the design for CIP
2285 (N. 4 Street from
West Grand Avenue to
Ocean View Avenue)
$100,000 in SB-1
Gas Tax Funds
Develop plan to fund
remaining Measure K-14
street repair project in 2026
Public Works
Department
Develop funding plan to fund
street repair project CIP
2295-22 anticipated for
construction in 2030
Present plan to Council in
early 2027 for review and
direction with initial update
in Fall of 2026
Staff Resources
th
th
Table of Contents 1.3 Major City Goals and Workprograms City of Grover Beach Budget | 2026-27 Page 14
Budget Augmentation Requests (BARs)
The table below contains the net cost of BARs included in the proposed budget.

Department BAR 2026-27
Public Works Facilities Operating Supplies 1,865
Public Works Street Supplies 2,000
Police SLO Sheriff Data Access Costs 5,832
Grand Total $9,697
Table of Contents 1.3 Major City Goals and Workprograms

Mayor and City Council
Kassi Dee
Mayor
Robert Robert
Mayor Pro Tem (District 1)
Jules Tuggle
District 2
Kathy McCorry-Driscoll
District 3
Clint Weirick
District 4
Table of Contents 1.4 City Council
City of Grover Beach Budget | 2026-27 Page 16
Executive Team
Matthew Bronson
City Manager
Kristin Eriksson
Assistant City Manager
Jennifer Thompson
City Attorney
Jim Munro
Chief of Police
Nick Szamet
Administrative Services
Director
Megan Martin
Community Development
Director
Scott Hallett
5Cities Fire Authority
Chief
Public Works Director
(Currently Vacant)
Table of Contents 1.5 Executive Team

Organizational Chart
City of Grover Beach
Voters
City Council
City Manager Matthew Bronson
Administrative Services Department Nick Szamet DirectorPolice Department Jim Munro
Chief of Police
Community Development
Department
Megan Martin Director
Public Works Department
Vacant Director
City Manager's Office
Kristin Eriksson
Assistant City Manager
City Attorney
Jennifer Thompson
Table of Contents 1.6 Organizational Chart
City of Grover Beach Budget | 2026-27 Page 18
Budget Timeline
The City of Grover Beach operates on a two-year budget cycle. The Budget for 2026-27 is the second year of the two-year cycle. The budgeting process begins in January with the completion of prior year financial statements, updating the five-year financial forecast, and the Council goal-setting process. The budget is customarily presented and approved by the Council in early June. The City's fiscal year commences July 1 and ends June 30.

Major Milestones
 February 10, 2026
Mid-year review and forecast presentation to Council
 March 23, 2026
Draft CIP Review to Council
 May 11, 2026
Budget Update to Council
 June 8, 2026
Budget Presentation to Council
 June 22, 2026
Budget Adoption
Table of Contents 1.7 Budget Timeline

Profile of Grover Beach
Location
The City of Grover Beach is in the southern part of San Luis Obispo County on California’s Central Coast. Grover Beach is bordered by Pismo Beach to the north, Arroyo Grande to the east, unincorporated Oceano to the south, and the Pacific Ocean to the west. The city is adjacent to Pismo State Beach and serves as the northern entry point to the Oceano Dunes State Vehicular Recreation Area.

The city covers an area of 2.31 square miles and is midway between San Francisco and Los Angeles approximately ninety miles north of Santa Barbara and 150 miles south of Monterey. The city’s coastal location provides a temperate climate with mild and dry summers and wet winters.

Early History of Grover Beach
Long before the settlement of European explorers, the land now considered the City of Grover Beach was inhabited by the Chumash.

The Chumash were skilled fisherman, herbalists, and hunters. Their lands stretched from Paso Robles all the way to the modern city of Malibu. Spanish explorer Juan Rodriguez Cabrillo was the first European to come to Grover Beach, during his voyage in 1542.

However, the area was not officially settled by Europeans until 1772, during the Mission San Luis Obispo de Tolosa. The Mission was founded by Father Junipero Serra and is still standing today.

In 1840, Governor Juan B. Alvarado issued an 8,838-acre land grant known as “El Pizmo Rancho” to Jose Ortega. Ortega was a veteran in the Mexican War of Independence and petitioned the Mexican government for the land grant. In 1846, Ortega sold El Pizmo Rancho to Isaac J. Sparks. Local folklore claims that the land was won from Ortega in a game of Monte. Through the years, the area changed ownership many times, and records reflect that John M. Price (founder of Pismo Beach) purchased the land for 477 head of cattle from Jose Ortega in 1850.
(Original Drawing of "El Pizmo Rancho")
Table of Contents 1.8 Profile of Grover Beach
City of Grover Beach Budget | 2026-27 Page 20
Founding and Naming the Town
In 1877, 35-year-old D.W Grover purchased a parcel of the original land grant with over $22,000 worth of gold, worth roughly $580,000 today. In August of 1887, Grover filed his plan for the self-named city at the San Luis Obispo Courthouse. The Town of Grover was established the same day. The name of the town officially became the ‘City of Grover City’ in 1959, when the city was incorporated. A public vote in 1992 changed the name to its current ‘The City of Grover Beach’ to emphasize its seaside location.

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

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

Government
Grover Beach has a Council-Manager form of government with four Council Members serving by district for four-year terms and a directly elected Mayor serving two-year terms. The Mayor and City Council serve as the legislative and policy making body of the City. The City Manager, appointed by the Council, serves as chief executive officer and is responsible for the day-to-day administration of City affairs. The City Council also appoints a City Attorney. There are four active Advisory Boards and Commissions that are appointed by the City Council: Planning Commission; Parks, Recreation, and Beautification Commission; and Citizen Oversight Committee for City Revenue Measures; and Citizen Oversight Committee for Revenue Measure K-14.

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

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

Table of Contents 1.8 Profile of Grover Beach

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

Table of Contents 1.8 Profile of Grover Beach
City of Grover Beach Budget | 2026-27 Page 22
Demographics
Population

TOTAL POPULATION
12,604 -0.65%
vs. 2023

GROWTH RANK
389 out of 506 Municipalities in California
* Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses

DAYTIME POPULATION
11,532
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs.
* Data Source: American Community Survey 5-year estimates 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
11,500
12,000
12,500
13,000
13,500
14,000
14,500
Table of Contents 1.9 Demographics

POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates 480
684
768
630 597
1,944
2,337
1,343
794 778
1,542
473
234
<5 5-9 10-14 15-19 20-2425-3435-4445-5455-5960-6465-7475-84 >85 0 500
1,000
1,500
2,000
2,500
Table of Contents 1.9 Demographics
City of Grover Beach Budget | 2026-27 Page 24
Household

TOTAL HOUSEHOLDS
4,945
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base.
-10%
lower than state average
-20%
lower than state average
11%
higher than state average
-13%
lower than state average
* Data Source: American Community Survey 5-year estimates Family Households
49%
Married Couples
40%
Singles
26%
Senior Living Alone
9%
Table of Contents 1.9 Demographics

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

HOUSEHOLD INCOME
Above $200,000
12% -42.79%
lower than state average
Median income
$86,458 -12.78%
lower than state average
Below $25,000
12% -7.11%
lower than state average
* Data Source: American Community Survey 5-year estimates Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000
Table of Contents 1.9 Demographics
City of Grover Beach Budget | 2026-27 Page 26
Housing
2024 MEDIAN HOME VALUE
$727,500
* Data Source: 2024 US Census Bureau, American Community Survey. Home value data includes all types of owner-occupied housing.

HOME VALUE DISTRIBUTION
* Data Source: 2024 US Census Bureau, American Community Survey. Home value data includes all types of owner-occupied housing.

HOME OWNERS VS

RENTERS
Grover
Beach
State Avg.
50%
Rent
51%
Own
44%
Rent
56%
Own
* Data Source: 2024 US Census
Bureau, American Community
Survey. Home value data includes
all types of owner-occupied
housing.
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
300K
400K
500K
600K
700K
800K
217
917
873
269
47 7
17 0
7 82
24 > $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
0 200 400 600 800 1,000
Table of Contents 1.9 Demographics

Financial Trends
Table of Contents 2.0 Financial Trends
City of Grover Beach Budget | 2026-27 Page 28
Property Tax Assessed Valuation
Property tax has historically been one of the General Fund’s most stable revenue sources and comprises over 30% of General Fund revenues. Property tax revenue is driven by changes in assessed value as determined by the San Luis Obispo County Assessor’s Office. As shown in the chart and table, assessed valuation has increased with an average annual increase of 5.51% over the past five years.

Fiscal
Year
Amount
%
Change
2017 1,507,554,753 5.69%
2018 1,589,746,399 5.17%
2019 1,691,583,881 6.02%
2020 1,816,655,000 6.88%
2021 1,981,307,383 8.31%
2022 2,108,617,583 6.04%
2023 2,224,972,373 5.23%
2024 2,344,771,706 5.11%
2025 2,479,590,296 5.44%
Est 2026 2,622,166,738 5.75%
Average Annual % Change
Last 2 Years 5.59%
Last 5 Years 5.51%
Last 10 Years 5.96%
Year
Dolllars ($)
2017
2018
2019
2020
2021
2022
2023
2024
2025
Est 2026
1,400,000,000
1,600,000,000
1,800,000,000
2,000,000,000
2,200,000,000
2,400,000,000
2,600,000,000
2,800,000,000
Table of Contents 2.1 Revenue Trends

Sales Tax
Sales tax is now the General Fund’s second-largest revenue source at 28% of General Fund revenue. Sales tax revenue has grown significantly since the passing of Measure F-20, the 1% transaction and use tax, approved by voters in November 2020. Measure F-20 1% transaction and use tax was $2.54M in FY 2024-25.

Fiscal
Year
Amount % Change
2017 $1,962,043 20.30%
2018 $2,136,375 8.90%
2019 $2,116,064 -1.00%
2020 $2,565,665 21.20%
2021 $2,819,912 9.90%
2022 $3,846,967 36.40%
2023 $5,649,554 46.90%
2024 $5,733,274 6.00%
2025 $5,880,971 1.00%
Est 2026 $6,028,025 2.44%
Average Annual % Change
Last 2 Years 2.48%
Last 5 Years 18.85%
Last 10 Years 15.54%
Year
Dolllars ($)
2017
2018
2019
2020
2021
2022
2023
2024
2025
Est 2026
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
Table of Contents 2.1 Revenue Trends
City of Grover Beach Budget | 2026-27 Page 30
Cannabis Tax
Cannabis revenue increased significantly from FY 2017-18 through FY 2020-21, increasing from $16,000 in the first year of collection to $2.4 million in FY 2020-21. FY 2021-22 showed a downturn in revenue as cannabis businesses begin operating in nearby cities and the industry in general continues to face significant pressures. Cannabis Tax revenues are now relatively unchanged at approximetly $1 million annually.

Fiscal Year Amount % Change
2018 $16,359
2019 $953,342 5727.60%
2020 $1,936,729 103.20%
2021 $2,424,900 25.20%
2022 $1,515,600 -37.50%
2023 $1,198,037 -21.00%
2024 $1,066,489 -20.80%
2025 $1,093,170 0.33%
Est 2026 $1,071,307 -2.94%
Average Annual % Change
Last 2 Years -1.71%
Last 5 Years -16.20%
Year
Dolllars ($)
2018
2019
2020
2021
2022
2023
2024
2025
Est 2026
0 500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Table of Contents 2.1 Revenue Trends

Franchise Fees
This revenue source consists of franchises paid to the City from utilities and private companies such as Comcast, AT&T, etc.

Franchise fees are stable and have averaged an 9.85% annual increase over the past five years. The higher increase is owing to higher costs for service along with the completion of two transatlantic fiber optic crossing cables which has added $200,000 annually to the City's revenues.

Fiscal Year Amount % Change
2017 $542,900 3.75%
2018 $529,200 -2.52%
2019 $555,460 4.96%
2020 $585,000 5.32%
2021 $600,200 2.60%
2022 $619,400 3.20%
2023 $713,394 15.18%
2024 $718,907 0.77%
2025 $848,000 17.96%
Est 2026 $965,000 6.33%
Average Annual % Change
Last 2 Years 15.04%
Last 5 Years 9.85%
Last 10 Years 6.33%
Year
Dolllars ($)
2017
2018
2019
2020
2021
2022
2023
2024
2025
Est 2026
500,000
550,000
600,000
650,000
700,000
750,000
800,000
850,000
900,000
950,000
1,000,000
Table of Contents 2.1 Revenue Trends
City of Grover Beach Budget | 2026-27 Page 32
Transient Occupancy Tax (TOT)
Transient Occupancy Taxes have seen growth owing to the City’s expanded efforts to collect revenues from short-term rentals. The City also anticipates the completion of the new hotel project on El Camino Real will begin revenue operations in the second quarter of FY 2026-27 which has been delayed since FY 2025-26.

Fiscal Year Amount % Change
2017 $368,700 1.46%
2018 $371,200 0.68%
2019 $433,249 16.72%
2020 $433,500 0.06%
2021 $580,400 33.89%
2022 $952,200 64.06%
2023 $924,162 -2.94%
2024 $953,685 3.19%
2025 $1,028,421 7.27%
Est 2026 $1,131,350 9.10%
Average Annual % Change
Last 2 Years 8.18%
Last 5 Years 16.13%
Last 10 Years 13.35%
Year
Dolllars ($)
2017
2018
2019
2020
2021
2022
2023
2024
2025
Est 2026
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
Table of Contents 2.1 Revenue Trends

General Fund Operating Costs: Last Ten Years
The average annual increase in operating costs has been 11.35% over the last five years due to increased revenue capacity to fund additional services but also showing the City's challenges containing costs in a volatile market. The FY 2026-27 budget includes a General Fund contribution of $50,000 to fund capital projects and an additional $230,000 for the Equipment Replacement Fund.

Fiscal
Year
Amount
%
Change
2017 9,129,900 10.40%
2018 10,368,565 13.57%
2019 10,977,200 5.87%
2020 12,131,200 10.51%
2021 13,507,556 11.35%
2022 14,962,253 10.77%
2023 15,535,258 3.83%
2024 23,749,284 52.87%
2025 23,972,673 1%
Est 2026 21,471,624 -11.65%
Average Annual % Change
Last 2 Years 5.36%
Last 5 Years 11.35%
Last 10 Years 10.85%
Year
Dollars ($)
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
0 2,500,000
5,000,000
7,500,000
10,000,000
12,500,000
15,000,000
17,500,000
20,000,000
22,500,000
25,000,000
27,500,000
Table of Contents 2.2 Expense Trends
City of Grover Beach Budget | 2026-27 Page 34
General Fund Reserves
The graph depicts the ending reserves for the General Fund over the past four years and the estimate for the current year along with the goal amount based on the Council’s 25% reserve policy. Ending reserves have remained higher than the policy level in recent years given prudent fiscal management. This scope of reserves adheres to the Council’s policy goal to ensure adequate reserves for emergencies, unforeseen circumstances, or one-time needs.

Fiscal Year
Doallars ($)
Actual Reserves Policy Goal (25%)
2019 2020 2021 2022 2023 2024 2025 Est 2026
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Table of Contents 2.2 Expense Trends

CalPers (Pension) Costs
The City's pension costs continue to increase annually despite a one-time paydown of safety-related pension costs in 2021. These costs are driven by market returns, employee's compensation changes and the total number of positions and other factors.

Fiscal Year
Dollars ($)
$1,029,928
$1,200,261
$1,420,978
$2,107,216
$2,170,473
$1,823,122
$1,980,562
$2,068,628
$2,167,829
$2,578,945
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 0 250,000
500,000
750,000
1,000,000
1,250,000
1,500,000
1,750,000
2,000,000
2,250,000
2,500,000
2,750,000
Table of Contents 2.2 Expense Trends
City of Grover Beach Budget | 2026-27 Page 36
Budget Overview
Table of Contents 3.0 Budget Overview

Overview FY 2026-27
The FY 2026-27 total budget is $29.51M and includes $19.39M in the General Fund, $6.92M in Enterprise Funds, and $2.12M in Special Revenue Funds. The budget includes $1.63M in the Capital Improvement Program (CIP) consisting of funding of $50,000 from the General Fund, $45,000 from Enterprise Funds, and $710K from Special Revenue Funds. The City’s General Fund budget is approximately 65% of the total City budget in FY 2026-27.

FY 2026-27 includes Measure K-14 expenditures that create a citywide expenditure amount of $970.27K in excess of total revenues.

FY 2026-27 Citywide Expenditures $29,513,010
General Fund (Budgeted) $19,385,170
Enterprise Funds (Budgeted) $6,923,313
Special Revenue Funds (Budgeted) $2,124,215
Capital Project Funds (Budgeted) $658,840
Table of Contents 3.1 Budget Summary
City of Grover Beach Budget | 2026-27 Page 38
FY 2026-27 Citywide Revenue $28,542,743
General Fund (Budgeted) $19,721,681
Enterprise Funds (Budgeted) $6,456,533
Special Revenue Funds (Budgeted) $1,705,689
Capital Project Funds (Budgeted) $658,840
Table of Contents 3.1 Budget Summary

City Expenditure Budget by Fund
Fund
#
Fund Name 2026-27
101 General Fund $19,385,170
105 Equipment Replacement Fund $421,473
201 Street Construction Designated Fund (K-14) $978,465 205 Gas Tax Fund $355,538
215 Local Transportation Fund (LTF) $284,872
230 Public Safety Grant Fund $146,500
305 Capital Projects $658,840
601 Water Fund $4,690,221
602 Water Conservation Fund $6,208
603 Wastewater Fund $2,226,883
Grand Total $29,513,010
Citywide Source of Funding
Category 2026-27 % of Budget
Property Tax $6,850,200 24%
Sales Tax $6,178,777 21%
Transient Occupancy Tax $1,221,000 3%
Cannabis Tax $1,060,593 4%
Charges for Services $7,517,825 28%
Franchise Fees $1,023,000 4%
Transfers In $1,759,840 5%
Use of Money and Property $549,038 2%
Licenses & Permits $562,380 2%
Utility Users Tax $239,990 1%
Other Agencies (Intergovernmental) $1,390,100 5%
Fines and Penalties $38,000 0.13%
Debt Proceeds $152,000 .53%
Grand Total $28,542,743 100.00%
Table of Contents 3.1 Budget Summary
City of Grover Beach Budget | 2026-27 Page 40
FY 2026-27 General Fund Expenditures by Category $19,385,170 Salaries and Benefits (Budgeted) $10,738,399
Supplies and Services (Budgeted) $8,366,151
Debt Service (Budgeted) $363,743
Transfers Out (Budgeted) $280,000
Minor Capital (Budgeted) $58,350
Major Capital (Budgeted) $0
Interdepartmental Charge (Budgeted) $0
Other (Budgeted) $0
Table of Contents 3.1 Budget Summary

FY 2026-27 General Fund Revenue by Source $19,388,681
Taxes (Budgeted) $16,573,560
Charges for Services (Budgeted) $922,888
Transfers In (Budgeted) $703,000
License and Permits (Budgeted) $562,380
Use of Money and Property (Budgeted) $421,658
Revenue from Other Agencies (Budgeted) $167,195
Fines and Penalties (Budgeted) $38,000
Table of Contents 3.1 Budget Summary
City of Grover Beach Budget | 2026-27 Page 42
Citywide Full-Time Equivalent Personnel
Department FY 2024-25 FY 2025-26 FY 2026-27
City Manager's Office 8.00 8.00 8.00
Administrative Services 9.00 9.00 9.00
Community Development 5.25 5.25 5.25
Public Works 16.75 16.75 16.75
Police 31.00 31.00 31.00
Total 70 70 70
Historical Expenditures by Department
Previous to FY 2026, Five Cities Fire Department contract services were included in Non-departmental and are included in the chart for purposes of reporting.

Fiscal Year
Dollars
Non-Departemental Police Department City Manager's Office Administrative Services Community Development Capital Improvement Plan Public Works Five Cities Fire Authority (FCFA)
FY 2022 FY 2023 FY 2024 FY 2025 Est FY 2026
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
Table of Contents 3.1 Budget Summary

FY 2026-27 Expenditures by Department
Dollar
3,837,643
8,038,033
1,942,425
1,647,070
6,344,861
1,532,469
2,925,000
3,078,963
Non-Departmental
Police Department
City Manager's Office
Administrative Services
Public Works
Community Development
Capital Imporvement Program
Five Cities Fire Authority (FCFA)
Table of Contents 3.1 Budget Summary
City of Grover Beach Budget | 2026-27 Page 44
Capital Improvement Budget by Fund
Historical Expenditures by Fund
General Fund Wastewater Development Impact Fee Fund Water Conservation Fund Wastewater Fund Water Fund Street Construction Designated Fund (K-14) Capital Projects
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund - - $37,506 -
Street Construction
Designated Fund (K-14) $2,213,929 $378,683 $2,400,000 $710,000 Capital Projects $1,233,037 $7,811,913 $3,890,552 $658,840 Water Fund $874,390 $22,703 $303,338 $20,000
Water Conservation Fund $4,401 $3,175 $5,000 $5,000
Wastewater Fund - -$12,900 $3,519,243 $240,000
Total Expenditures $4,325,756 $8,203,573 $10,155,639 $1,633,840 $9M
$7M
$4M
$8M
$10M
$2M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$5M
0 $5M
$10M
$15M
Expenditures by Fund
Table of Contents 3.2 Capital

Transfers In
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund $599,750 $697,817 $683,150 $703,000
Equipment Replacement
Fund $136,667 $560,000 $368,000 $333,000
Street Construction
Designated Fund (K-14) $38,000 $40,000 $40,000 $40,000
Capital Projects $1,133,737 $8,317,579 $4,070,104 $658,840 Water Fund $25,000 - $25,000 $25,000
Wastewater Fund $6,106 - - -
Total Revenues $1,939,260 $9,615,396 $5,186,254 $1,759,840 Revenues by Fund
Table of Contents 3.3 Transfers In
City of Grover Beach Budget | 2026-27 Page 46
Transfers Out
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund $628,987 $5,655,645 $3,016,456 $280,000
Street Construction
Designated Fund (K-14) - - $25,000 $25,000
Gas Tax Fund $3,000 $100,000 - $50,000
Road Maintenance and
Rehabilitation Account $299,000 $299,999 - $358,840
Local Transportation Fund
(LTF) - $1,800,000 $521,270 $200,000
Parks Construction Fund - $242,196 $342,361 -
Fire Development Impact
Fee Fund $8,000 - - -
Stormwater Development
Impact Fee Fund - $160,500 - -
Wastewater Development
Impact Fee Fund $5,596 - - -
Parks Facilities
Development Impact Fee
Fund
$231,170 $77,325 $301,128 -
Recreation Facilities
Development Impact Fee
Fund
- - $100,129 -
Water Development
Impact Fee Fund $25,000 - - -
State Mandated ADA Fund $6,000 - - -
CDBG - Non Entitlement
Fund - $489,014 - -
Trust and Agency Fund - - $56,760 -
Water Fund $492,499 $458,153 $525,000 $490,000
Wastewater Fund $240,008 $332,564 $298,150 $356,000
Total Expenditures $1,939,260 $9,615,396 $5,186,254 $1,759,840 Expenditures by Fund
Table of Contents 3.4 Transfers Out

Department Budgets
Table of Contents 4.0 Department Budgets
City of Grover Beach Budget | 2026-27 Page 48
Administrative Services
Mission Statement
Provide clear, accurate and timely financial information to City officials and financial management services which enhance the financial health of the City and improve the economic well-being of the community now and in the future.

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

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

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

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

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

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

Information Technology
Work collaboratively with all City departments to deliver the highest quality IT services, infrastructure, and technology consulting possible. Manage the operation, maintenance and support of City technology infrastructure and technology assets.

Utility Billing
Provides customer account services to over 4,800 accounts for water, wastewater and stormwater services provided by the City.

Utility bills are mailed every two months to all customers of the city, with one half of the city billed each month.

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

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

Table of Contents 4.1 Administrative Services

FY 2025–26 Highlights
Prepared FY 2024-25 Annual Comprehensive Financial Report with no findings and an unqualified opinion from the independent auditors
Worked with investment advisors to continue to diversify the City’s investment portfolio and ensure invested funds are aligned with City’s investment policy
Prepared updated five-year General Fund Financial Forecast Recruited a new Finance Manager to fill vacancy
Completed $4.8 million in sewer bond issuance via private placement following adoption of new sewer rate structure Completed issuance of $5 million in GO Bonds for Measure K-14 Streets Prepared Citizens Oversight Committee reports for Measure K-14 and Sales Tax Updated Master Fee Schedule for FY 2026-27
Lead preparation and development of the FY 2026-27 Budget FY 2026-27 Key Department Initiatives
Develop a new Cost Allocation Plan which will update existing methods for determining rates to charge for services provided by the General Fund to non-general fund programs.

Undertake Water Rate Study working with the City Manager's Office and Public Works given expiration of existing rate structure Implement a cyber security program to train staff on emerging threats, best practices, and communication around cyber security Attend conferences and training for public sector financial management, such as Government Finance Offers Association and California Society of Municipal Finance Officers, to learn new technical approaches and market developments to inform City strategic financial direction
Continue to build strong relationships with related staff in neighboring cities and understand economic conditions affecting region for more effective budgeting and forecasting
Lead preperation and development of FY 2027-29 two-year budget Table of Contents 4.1 Administrative Services
City of Grover Beach Budget | 2026-27 Page 50
Performance Measures
Performance Measure 1: Number of calendar days following year-end until the Annual Comprehensive Financial Report (ACFR) is issued
The goal is to meet or exceed the Government Financial Officers Association (GFOA) recommended standard of submitting the ACFR by December 31, or 184 after the fiscal year-end to enable and enhance transparency, accountability and integrity.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 170 170 170 170 170
Actual 169 170 172 235
Notes: FY 2024-25 ACFR was delayed due to departure of Finance Manager overseeing preparation.

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 2.25 2.75 3.0 3.5
Actual 1.71 2.69 2.79 NA
Notes: The Department is no longer tracking this meric as the Federal Government canceled the program providing the score. A new KPI will be developed in FY 2026-27 to measure Cybersecurity efforts.

Table of Contents 4.1 Administrative Services

FY26 Expenditures by Fund
General Fund $654,826 43.32%
Water Fund $413,858 27.38%
Wastewater Fund $413,139 27.33%
Equipment Replacement Fund $25,000 1.65%
Local Transportation Fund (LTF) $4,635 0.31%
FY27 Expenditures by Fund
General Fund $693,863 42.13%
Water Fund $469,833 28.53%
Wastewater Fund $458,374 27.83%
Equipment Replacement Fund $25,000 1.52%
In FY 2026-27, the General Fund expenditure for Administrative Services increased to $693,863, representing 42.13% of the total, up from $654,826 or 43.32% in FY 2025-26. This reflects a growth in dollar amount but a slight decrease in percentage share. The Water Fund allocation rose to $469,833 in FY 2026-27, accounting for 28.53% of the expenditures, compared to $413,858 or 27.38% in the previous year. This indicates an increase in both dollar amount and percentage share. Expenditures from the Wastewater Fund also increased to $458,374 or 27.83% in FY 2026-27, up from $413,139 or 27.33% in FY 2025-26, showing growth in both amount and proportion. The Equipment Replacement Fund remained constant at $25,000, though its share of total expenditures slightly decreased to 1.52% in FY 2026-27 from 1.65% in FY 2025-26. The Local Transportation Fund, which accounted for $4,635 or 0.31% in FY 2025-26, is not listed among the largest categories in FY 2026-27, indicating it may no longer be a significant expenditure category for Administrative Services in that year.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund $642,002 $601,610 $654,826 $693,863
Equipment Replacement
Fund $9,093 $50,607 $25,000 $25,000
Local Transportation Fund
(LTF) $4,500 $4,650 $4,635 -
Water Fund $498,495 $409,161 $413,858 $469,833
Wastewater Fund $466,227 $427,901 $413,139 $458,374
Total Expenditures $1,620,317 $1,493,929 $1,511,459 $1,647,070

1.51M 1.65M
Expenditures by Fund
Table of Contents 4.1 Administrative Services
City of Grover Beach Budget | 2026-27 Page 52
FY26 Expenditures by Division
Utility Billing $826,998 54.72%
Information Technology $366,842 24.27%
General Accounting $317,619 21.01%
FY27 Expenditures by Division
Utility Billing $928,207 56.36%
Information Technology $381,207 23.14%
General Accounting $337,655 20.50%
In FY 2026-27, Utility Billing expenditures increased to $928,207, representing a 12.22% rise from $826,998 in FY 2025-26. This category also saw a slight increase in its share of total Administrative Services expenditures, growing from 54.72% to 56.36%.

Information Technology expenses rose to $381,207 in FY 2026-27, up 3.91% from $366,842 in the previous year. However, its proportion of the total decreased slightly from 24.27% to 23.14%. General Accounting expenditures increased to $337,655 in FY 2026-27, a 6.28% increase from $317,619 in FY 2025-26. Its share of the total Administrative Services budget decreased marginally from 21.01% to 20.5%.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Accounting $328,668 $312,942 $317,619 $337,655
Utility Billing $964,722 $837,062 $826,998 $928,207
Information Technology $326,927 $343,925 $366,842 $381,207 Total Expenditures $1,620,317 $1,493,929 $1,511,459 $1,647,070 Expenditures by Category
Historical Expenditures by Category
Interdepartmental Charge Minor Capital Other
Supplies and Services Salaries and Benefits

1.51M 1.65M
Expenditures by Division
$1,237K
$1,381K
$1,620K
$1,494K $1,511K
$1,647K
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $500K
$1,000K
$1,500K
$2,000K
Table of Contents 4.1 Administrative Services

In FY 2025-26, the total Administrative Services budget increased slightly by 1.17% to $1.5 million compared to FY 2024-25. Salaries and Benefits, the largest category, rose by 6.02% to $1.1 million, representing 70.37% of the total budget. Supplies and Services also increased by 2.19% to $447,890, accounting for 29.63% of the total. Notably, the Other category and Minor Capital expenditures, which had combined to $52,461 in FY 2024-25, were eliminated entirely in FY 2025-26, each decreasing by 100% to $0.

Interdepartmental Charges remained at $0. In FY 2026-27, the total budget grew by 8.97% from the prior year to $1.6 million.

Salaries and Benefits continued to be the largest category, increasing by 10.51% to $1.2 million and comprising 71.36% of the total budget. Supplies and Services also saw a 5.32% increase to $471,715, making up 28.64% of the budget. Minor Capital, Interdepartmental Charges, and Other categories remained at $0, consistent with FY 2025-26.

FY26 Expenditures by Category
Salaries and Benefits $1,063,569 70.37%
Supplies and Services $447,890 29.63%
FY27 Expenditures by Category
Salaries and Benefits $1,175,355 71.36%
Supplies and Services $471,715 28.64%
In FY 2026-27, the Salaries and Benefits category for Administrative Services increased to $1.2 million, representing a 9.09% rise from the previous year's $1.1 million. This category also saw a slight increase in its share of total expenditures, growing from 70.37% in FY 2025-26 to 71.36% in FY 2027. The Supplies and Services category rose to $471,715 in FY 2026-27, marking a 5.28% increase from $447,890 in FY 2025-26. However, its proportion of total expenditures decreased slightly from 29.63% to 28.64% over the same period.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Salaries and Benefits $1,102,993 $1,003,172 $1,063,569 $1,175,355 Supplies and Services $489,838 $438,297 $447,890 $471,715 Minor Capital - $11,847 - -
Interdepartmental Charge $1,998 - - -
Other $25,488 $40,614 - -
Total Expenditures $1,620,317 $1,493,929 $1,511,459 $1,647,070

1.51M 1.65M
Expenditures by Category
Table of Contents 4.1 Administrative Services
City of Grover Beach Budget | 2026-27 Page 54
Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Administrative Services Director 1 1
Finance Manager 1 1
Accounting Specialist 1 1
Accounting Technician II 2 2
Accounting Technician III 1 1
Administrative Assistant I 1 1
IT Specialist 1 1
Assistant IT Specialist 1 1
Total Positions 9 9
Table of Contents 4.1 Administrative Services

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

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

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

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

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

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

FY 2025-26 Highlights
Oversaw citywide implementation and facilitated the Council's development of governing norms and broad multi-year goals and City Council biennial priorities for FY 2025-27
Continued to provide citywide leadership and project management for implementation of a new Enterprise Resource Planning system
Led analysis of the City's fleet management, established a Equipment Replacement Fund and funding policy and contracted for Enterprise Fleet Management services to better streamline the City's vehicle acquisition, maintenance and replacement practices
Coordinated tourism marketing for the City’s Visit Grover Beach platforms to support economic vitality in the City Coordinated citywide response to homelessness issues such as development of homeless housing facilities, implementation of the camping ordinance and working with the County and community organizations on homeless services Coordinated citywide communication and engagement efforts with assistance of outside communications firm and delivered multiple community engagement events and informational forums Conducted the 2025 biennial community survey to gauge resident perceptions on quality of life, City services, communications, and key policy issues facing the City
Conducted the annual employee satisfaction survey to assess organizational management, community, training and development, and other key aspects of organizational culture Table of Contents 4.2 City Manager's Office
City of Grover Beach Budget | 2026-27 Page 56
Provided citywide leadership in enhancing organizational performance through implementation of the recommendations from the organizational assessment by improving systems, processes, structures, and tools Promoted employee training and development and implemented citywide training plans Completed the recodification process for the Grover Beach Municipal Code Implemented a Public Records Act response system
Completed updates to the City’s website to improve site design and organization Recruited for 18 positions in City departments
Implemented a Workplace Violence Prevention Plan, in accordance with State law Strengthened existing relationships, partnerships, and volunteers to continue to provide high-quality programs and events to the community.

Adapted the City's community events to accommodate the Ramona Garden Park Rehabilitation construction project in FY 2025- 26 Promoted and delivered a community event to celebrate the completion of the West Grand Avenue streetscape project Promoted benefits of recreation programs, facilities and special events for the community, including introduction of new wellness events, focusing on physical and mental well-being Increased sponsorship opportunities and commitments for City events Implemented high-quality community special events including the summer concert series, holiday events, and inaugural Tour of Grover Beach Bike Parade
FY 2026-27 Key Department Initiatives
Continue to coordinate tourism marketing for the City’s Visit Grover Beach platforms to support economic development in the city
Continue to coordinate citywide response to homelessness issues Continue to coordinate citywide communication and engagement efforts and implement the work programs for Council Goals and Priorities for FY 2026-27
Coordinate an update of the City's Economic Development Strategy working with the Community Development Department Work with the City's labor groups to develop new Memoranda of Understanding and resolutions affecting employee compensation, work conditions, and other factors
Conduct an annual employee satisfaction survey
Coordinate November 2026 municipal election
Promote employee training and development at both a citywide and departmental level Build a robust volunteer recruitment, training and recognition program for Community Services Continue to develop and expand high-quality and affordable recreation programming and community events for the community Table of Contents 4.2 City Manager's Office

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

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 50% 50% 35% 40%
Actual 161% 9987% 34%
92% (thru April
2026)
Notes: The large growth percentage in FY 2023-24 is due to increased efforts and hiring of a marketing firm to manage Visit Grover Beach platforms.

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

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 95% 90% 90% 90%
Actual 92% 80% 80% 77%
Notes: N/A
Performance Measure 3: Employee retention rate
Percentage of employee retention per fiscal year. Turnover includes retirements, however, seasonal and volunteer staff are excluded.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 95% 90% 90% 90%
Actual 92% 80% 83% 83%
Notes: N/A
Table of Contents 4.2 City Manager's Office
City of Grover Beach Budget | 2026-27 Page 58
Performance Measure 4: Timely City Council meeting minutes Percentage of City Council Meeting Minutes prepared within 45 business days of the meeting in the prior calendar year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 100% 100% 100% 100%
Actual 87% 100% 100% 100%
Notes: N/A
Performance Measure 5: Increase in parks facility rentals Increase in total facility rental agreements signed each fiscal year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 327 356 415 425
Actual 298 339 416
387 (thru April
2026)
Notes: N/A
Performance Measure 6: Increase in the number of participants in Community Services classes
Increase in the total number of registrations for classes each fiscal year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 885 1290 1650 1665
Actual 843 1229 1652
1470 (thru April
2026)
Notes: N/A
Table of Contents 4.2 City Manager's Office

FY26 Expenditures by Fund
General Fund $1,924,718 100.00%
FY27 Expenditures by Fund
General Fund $1,942,426 100.00%
In the City Manager's Office, the Fiscal Year Expenditures by Fund remained consistent from FY 2025-26 to FY 2026-27. The General Fund accounted for 100% of the expenditures in both years, with the amount staying steady at $1.9 million.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund $1,846,137 $1,877,006 $1,924,718 $1,942,426 Total Expenditures $1,846,137 $1,877,006 $1,924,718 $1,942,426 FY26 Expenditures by Division
General Management $658,230 34.20%
Community Services $567,489 29.48%
Legislative $382,244 19.86%
Human Resources $316,756 16.46%
FY27 Expenditures by Division
General Management $672,947 34.64%
Community Services $534,198 27.50%
Legislative $412,916 21.26%
Human Resources $322,365 16.60%
In FY 2026-27, General Management expenditures increased to $672,947, representing a 2.2% rise from $658,230 in FY 2025-26.

This category's share of total expenditures grew slightly from 34.2% to 34.64%. Community Services spending decreased to $534,198 in FY 2026-27, down 5.9% from $567,489 in the previous year. Its proportion of the total budget also declined from 29.48% to 27.5%. Legislative expenditures rose to $412,916 in FY 2026-27, marking an 8% increase from $382,244 in FY 2025-26. The percentage of total expenditures for this category increased from 19.86% to 21.26%. Human Resources costs grew modestly to $322,365 in FY 2026-27, up 1.8% from $316,756 in the prior year. Its share of the total budget remained relatively stable, moving from 16.46% to 16.6%.

1.92M 1.94M
Expenditures by Fund

1.92M 1.94M
Table of Contents 4.2 City Manager's Office
City of Grover Beach Budget | 2026-27 Page 60
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Legislative $391,012 $457,176 $382,244 $412,916
General Management $618,725 $619,001 $658,230 $672,947
Human Resources $263,445 $316,118 $316,756 $322,365
Community Services $572,955 $484,711 $567,489 $534,198
Total Expenditures $1,846,137 $1,877,006 $1,924,718 $1,942,426 Expenditures by Category
Historical Expenditures by Category
Debt Service Interdepartmental Charge Supplies and Services Salaries and Benefits
For FY 2026-27, total expenditures again increased slightly by 0.92% to $1.9 million from FY 2025-26. Salaries and Benefits saw a marginal decrease of $1,514 or 0.11%, totaling $1.4 million and accounting for 70.22% of the budget. Supplies and Services increased by $19,222 or 3.44% to $578,512, representing 29.78% of total expenditures. Debt Service and Interdepartmental Charge remained at $0.

FY26 Expenditures by Category
Salaries and Benefits $1,365,428 70.94%
Supplies and Services $559,291 29.06%
FY27 Expenditures by Category
Salaries and Benefits $1,363,913 70.22%
Supplies and Services $578,512 29.78%
In FY 2026-27, the City Manager's Office allocated $1.4 million to Salaries and Benefits, which represents a slight decrease in its share of the total budget to 70.22% from 70.94% in FY 2025-26. This indicates that while the dollar amount remained stable, the Expenditures by Division
$2M
$2M $2M $2M $2M $2M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $1M
$2M
$3M

1.92M 1.94M
Table of Contents 4.2 City Manager's Office

proportion of the budget dedicated to Salaries and Benefits decreased marginally. Supplies and Services expenditures increased to $578,512 in FY 2026-27, up from $559,291 in FY 2025-26. This change corresponds to a rise in the category's budget share to

29.78% from 29.06%, reflecting a modest growth in both the dollar amount and percentage of total expenditures.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Salaries and Benefits $1,181,281 $1,217,144 $1,365,428 $1,363,913 Supplies and Services $600,745 $634,242 $559,291 $578,512 Debt Service $25,620 $25,620 - -
Interdepartmental Charge $38,491 - - -
Total Expenditures $1,846,137 $1,877,006 $1,924,718 $1,942,426 Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Mayor & Council Members 5 5
City Manager 11
Assistant City Manager 11
City Clerk 11
Deputy City Clerk 1 1
Human Resources Officer 11
Community Services Supervisor 11
Community Services Coordinator 11
Community Services Administrative
Assistant
1 1
Total Positions 13 13
Expenditures by Category
Table of Contents 4.2 City Manager's Office
City of Grover Beach Budget | 2026-27 Page 62
Community Development Department
Mission Statement
Enhance the quality of life in Grover Beach by providing responsive and efficient development services that promote balanced development, support economic growth, ensure regulatory compliance, and foster a vibrant and thriving community.

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

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

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

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

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

Table of Contents 4.3 Community Development

FY 2025-26 Highlights
Completed Vehicle Miles Traveled and Level of Service Technical Reports to inform the City’s update to the Circulation Element Completed an update to the Multi-Jurisdictional Hazard Mitigation Plan in coordination with all participating agencies in coordination with the County of San Luis Obispo
Completed the 2024 Development Code and Local Coastal Plan update Prepared Request for Proposal (RFP) for the City’s 7th Cycle Housing Element (2028 – 2037)update Digitized records in support of the Community Development Department's Digital Records Project Completed updates to the Community Development Department's website to improve readability, usability, and increase transparency
Continued support of the City’s economic development policies to assist existing businesses and attract new businesses Continued support of California State Parks with the Grover Beach Lodge project Issued Certificate of Occupancy for two major projects including 402 West Grand Avenue (Encore) and 1206 West Grand Avenue (Cleaver and Clark), a 53-unit 100% affordable housing project, managed by People’s Self-Help Housing Issued building permits and oversaw construction of major projects 401 West Grand Avenue (Palladium), 197 West Grand Avenue (Trinity), 950 El Camino Real (Springhill Suites) Issued building permits for other major projects including 1598 El Camino Real (Hotel) Processed the City’s first Cannabis Consumption Lounge application on behalf of SLO Cal Roots Developed and presesented materials at City Council Special Meeting on Housing and Development Participated in the 7th Cycle RHNA negotiations with SLOCOG, County of San Luis Obispo, and the 7 incorporated cities Initiated the 7th Cycle Housing Element Update and developed the Request for Proposal (RFP) for qualified consultants to support the City in this effort
Received a $300,000 Community Development Block Grant (CDBG) award for 5Cities Homeless Coalition Public Services to support on-going non-congregate shelter operations at Balay Ko on Barca and Cabins for Change Recruited for and hired a new Code Compliance Officer
FY 2025-27 Key Department Initiatives
Complete update to the Circulation Element
Complete update to the Noise Element
Prepare the 7th Cycle Housing Element update
Initiate an update to the City's Development Impact Fees for Stormwater, Transportation, and Water Resiliency Conduct an annual review of the City’s Development Code and update the City's Accessory Dwelling Unit Ordinance in compliance with State law
Coordinate with Coastal Commission staff to pursue an update to the City’s Local Coastal Plan Develop a framework and implement a Community Development forum to improve engagement and understanding of the department and its initiatives
Continue to digitize records in support of the Community Development Department's Digital Records Project Continue to make improvements to the Community Development Department's website Table of Contents 4.3 Community Development
City of Grover Beach Budget | 2026-27 Page 64
Performance Measures
Performance Measure 1: Number of entitlements approved
Entitlements (discretionary projects) approved/issued.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 10 10 15
Actual 12 14 25 28
Notes: Discretionary projects includes Use Permits, Development Permits, Administrative Coastal and Non-Coastal Development Permits, and Ordinance Amendments. Does not include time extensions, temporary use permits, or pre-applications.

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 132 132 150 200
Actual 120 189 228 171
Notes: N/A
Performance Measure 3: Number of non-over the counter permits issued Non-OTC permits issued: electrical PV system or car chargers, fire alarm, suppression, grading/stockpile, residential addition, alteration, new SFR, new ADU, residential conversion to ADU, commercial conversion to residential, commercial addition, commercial tenant improvement, sign permits
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 132 200 200
Actual 120 195 220 256
Notes: N/A
Table of Contents 4.3 Community Development

Performance Measure 4: Number of inspections performed
Number of Inspections Performed
FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 1000 1087 1087 1100
Actual 988 1030 1531 1515
Notes: N/A
Performance Measure 5: Average length of plan review
Average number of days for plan check review by Building, Planning, and Public Works FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 21 15 15 21
Actual 10 9 15 17
Notes: Beginning January 2025, Community Development increased the expected plan and permit review times from 15 days to 21 days to reflect the significant workload increase and staffing shortages in both Public Works and Community Development.

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 175 300 300
Actual 200 343 385 171
Notes: Decrease in FY 2025-26 due to vacancy in position.

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 210 250 300
Actual 202 351 364 102
Notes: Decrease in FY 2025-26 due to vacancy in position.

Table of Contents 4.3 Community Development
City of Grover Beach Budget | 2026-27 Page 66
Performance Measure 8: Inspection request turnaround times Percent of inspection requests completed within 48 hours.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 90% 90% 90%
Actual - 100% 100% 100%
Notes: N/A
FY26 Expenditures by Fund
General Fund $1,310,290 100.00%
FY27 Expenditures by Fund
General Fund $1,532,469 100.00%
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund $6,322,128 $1,294,044 $1,310,290 $1,532,469 CDBG - Non Entitlement
Fund $592,261 $330,794 - -
Total Expenditures $6,914,388 $1,624,838 $1,310,290 $1,532,469 In FY 2026-27, total expenditures increased by 16.96% to $1.5 million from FY 2025-26. Planning expenditures grew significantly by $274,013 or 38.53% to $985,160, increasing its share to 64.29% of the total. Code Compliance also increased by $21,172 or 18.53% to $135,449, representing 8.84% of the budget. Conversely, Building expenditures decreased by $73,006 or 15.06% to $411,860, reducing its portion to 26.88%. CDBG remained at $0 for this year as well.

1.31M 1.53M
Expenditures by Fund
Table of Contents 4.3 Community Development

FY26 Expenditures by Division
Planning $711,148 54.27%
Building $484,865 37.00%
Code Compliance $114,277 8.72%
FY27 Expenditures by Division
Planning $985,160 64.29%
Building $411,860 26.88%
Code Compliance $135,449 8.84%
In FY 2026-27, the Planning division's expenditures increased to $985,160, representing a 38.5% rise from $711,148 in Fiscal Year 2026. This increase also shifted Planning's share of the total Community Development budget from 54.27% to 64.29%. The Building division saw a decrease in expenditures to $411,860 in Fiscal Year 2027, down 15% from $484,865 in FY 2025-26. Consequently, Building's portion of the budget declined from 37% to 26.88%. Expenditures for Code Compliance rose to $135,449 in FY 2026-27, an 18.5% increase from $114,277 in FY 2025-26. Its share of the budget remained relatively stable, moving slightly from 8.72% to

8.84%.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Planning $5,829,192 $705,768 $711,148 $985,160
CDBG $592,261 $330,794 - -
Building $385,632 $468,449 $484,865 $411,860
Code Compliance $107,303 $119,827 $114,277 $135,449
Total Expenditures $6,914,388 $1,624,838 $1,310,290 $1,532,469 Expenditures by Category
Historical Expenditures by Category
Interdepartmental Charge Salaries and Benefits Supplies and Services

1.31M 1.53M
Expenditures by Division
$1M $1M
$7M
$2M $1M $2M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
Table of Contents 4.3 Community Development
City of Grover Beach Budget | 2026-27 Page 68
In FY 2026-27, the total budget rose by 16.96% to $1.5 million from FY 2025-26. Salaries and Benefits continued as the largest category, increasing by 11.53% to $940,440, which made up 61.37% of the total budget. Supplies and Services also increased by

26.76% to $592,030, representing 38.63% of the total. Interdepartmental Charges remained at $0 throughout both years.

FY26 Expenditures by Category
Salaries and Benefits $843,241 64.36%
Supplies and Services $467,049 35.64%
FY27 Expenditures by Category
Salaries and Benefits $940,440 61.37%
Supplies and Services $592,030 38.63%
In FY 2026-27, the Community Development budget allocated $940,440 to Salaries and Benefits, which is a 11.5% increase from the $843,241 spent in FY 2025-26. Despite this increase in dollar amount, the proportion of the budget dedicated to Salaries and Benefits decreased from 64.36% in FY 2025-26 to 61.37% in FY 2026-27. Supplies and Services expenditures rose to $592,030 in FY 2026-27, marking a 26.8% increase from the $467,049 spent in FY 2025-26. The share of the budget for Supplies and Services also grew, moving from 35.64% in FY 2025-26 to 38.63% in FY 2026-27.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Salaries and Benefits $718,951 $832,761 $843,241 $940,440 Supplies and Services $6,165,745 $792,077 $467,049 $592,030 Interdepartmental Charge $29,692 - - -
Total Expenditures $6,914,388 $1,624,838 $1,310,290 $1,532,469 Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Community Development Director 1 1
Senior Planner 1 1
Associate Planner 1 1
Assistant Planner 1 1
Code Compliance Officer 1 1
Administrative Assistant II 0.25 0.25
Total Positions 5.25 5.25

1.31M 1.53M
Expenditures by Category
Table of Contents 4.3 Community Development

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

Our Principles
Diverse and inclusive workforce
Regional Collaboration and action-driven leadership
Innovation and constant improvement
Values-focused service
Engagement and transparency with the community
Department Motto
"Committed to Our Community"
The Grover Beach Police Department is a 24/7 comprehensive and technologically advanced community policing department divided into two service Divisions: Field Operations Division and Support Services Division.

The Field Operations Division consists of the Patrol Bureau, which is managed by one (1) Police Commander who oversees four (4) Sergeants, thirteen (13) officers and two (2) Community Service Officers. The Sergeants and Officers work 12-hour patrol shifts staffed with a minimum of two officers, with most shifts having between three and four officers on duty at one time. Shift staffing is based on the day of the week, the time of the day, and the call volume history. In 2025, the Patrol Bureau handled 14,225 calls for service and made 531 arrests.

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

The Grover Beach Police Department Detective Bureau consists of one full-time Detective Sergeant, three full-time Detectives, one Community Service Officer, and one Police Management Analyst who investigate crimes ranging from petty thefts to homicides. In 2025, the Detective Bureau investigated 113 cases. The Detective Bureau has one full-time Detective assigned solely to the Cannabis Regulatory Program for the city. This detective oversees the city’s commercial cannabis businesses by conducting employment background investigations, business inspections, and financial audits of each business annually.

The Records Bureau is staffed by two Full-Time Records/Property Technicians who processed 1,364 reports in 2025. The Records Bureau is responsible for reporting all crime statistics to various State and Federal law enforcement agencies, filing police reports with the District Attorney for prosecution, and processing front counter requests for assistance from our community members.

Additionally, the Records and Property Bureau processed 204 District Attorney Discovery requests and booked 686 items of evidence into the property room.

Table of Contents 4.4 Police Department
City of Grover Beach Budget | 2026-27 Page 70
FY 2025-26 Highlights
Met the City Council's goal related to public safety by accomplishing the work programs specific to the Police Department Completed nearly all action items on the department's 3-year strategic plan Secured $331,000 in grants to support traffic enforcement, a new patrol vehicle, and a patrol motorcycle Deployed new technology, including Taser 10's, new body cameras, electronic citations, and new community cameras Re-established a two-person Motorcycle Traffic Unit
Responded to 14,225 calls for service
Reduced overall crime by 23% in 2025 with burglaries were down by 77%, and thefts were down 46% in 2025 Felony Arrests were up by 50% from 2024 and Traffic Enforcement Stops up by 22% in 2025 Worked with other City staff and cannabis industry representatives to continue safe operations of the commercial cannabis industry in the city
Coordinated homeless outreach and assistance with multiple non-profit and governmental agencies to reduce vagrancy behavior in the city
Began weekly collaboration with an embedded mental health clinician assigned to patrol Engaged the community on the Police Department social media platforms that consist of Facebook, Instagram, Twitter, Nextdoor and Ring Neighbors, allowing the department to communicate with approximately 20,000 followers Enhanced outreach with local youth by hosting multiple events, including Grover Beach Night Out, Trunk or Treat, Drone Flight Academy, and various elementary school presentations
Continued to build a dynamic Health and Wellness program, including proper nutritional options in the break room, a full-sized fitness center, a wellness room for stress recovery, a proper life/work balance for employees, and in-house insurance-funded chiropractic care for staff members
FY 2026-27 Key Department Initiatives
In line with the City Council's goals, the Police Department will champion contemporary public safety services by providing leadership and adequate resources, including training, to meet service demands and growing challenges in such areas as homelessness, mental health, vagrancy, and social justice.

Embark on a 2-year accreditation process through the California Police Chiefs Association Continue to enhance PD technology with tools to make staff safer and improve workflows Focus on community traffic concerns and deploy one additional motorcycle traffic officer Work to identify a location for a new police facility, along with a funding plan.

Complete remaining items in the 2023-2026 strategic plan initiatives.

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

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

Table of Contents 4.4 Police Department

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

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 95% 95% 95% 95% 95%
Actual 90% 95% NA NA
Notes: In FY 2024-25 and 2025-26, customer service scores were not available due to the dispatch move to the Sheriff's Office. Scores will be available again in FY 2026-27.

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

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 100% 100% 100% 100% 100%
Actual 87% 91% 96% 96%
Notes: NA
Performance Measure 3: Percentage of officers who have received updated training in Crisis Intervention, De-escalation, Implicit Bias and Principled Policing concepts
Percentage of officers assigned to complete the training as department resources can provide.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal 66% 90% 100% 100% 100%
Actual 75% 90% 83% 100%
Notes: NA
Table of Contents 4.4 Police Department
City of Grover Beach Budget | 2026-27 Page 72
FY26 Expenditures by Fund
General Fund $7,288,566 94.58%
Equipment Replacement Fund $271,466 3.52%
Public Safety Grant Fund $146,500 1.90%
FY27 Expenditures by Fund
General Fund $7,607,436 94.57%
Equipment Replacement Fund $289,928 3.60%
Public Safety Grant Fund $146,500 1.82%
In FY 2026-27, the Police Department's expenditures from the General Fund increased to $7.6 million, representing 94.57% of the total, up from $7.3 million and 94.58% in FY 2025-26. This reflects a growth in the General Fund allocation while maintaining a similar proportion of the overall budget. The Equipment Replacement Fund expenditures rose to $289,928 in FY 2026-27, accounting for 3.61% of the total budget. This is an increase from $271,466 and 3.52% in the previous year, indicating a slight growth in spending from this fund. Expenditures from the Public Safety Grant Fund remained constant at $146,500 in both FY 2025-26 and FY 2026-27. However, its share of the total budget decreased slightly from 1.9% to 1.82% in FY 2026-27.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund $8,036,967 $7,061,328 $7,288,566 $7,607,436 Equipment Replacement
Fund $67,980 $221,859 $271,466 $289,928
Public Safety Grant Fund $375,679 $126,197 $146,500 $146,500 Law Enforcement
Development Impact Fee
Fund
$2,479 - - -
Total Expenditures $8,483,105 $7,409,384 $7,706,532 $8,043,865 In FY 2026-27, total expenditures further increased by 4.3% to $8 million. Police Operations continued as the largest division with $4.9 million, up $156,598 or 3.33%, comprising 60.43% of the total. Police Support Services experienced a significant increase of $154,717 or 7.48%, reaching $2.2 million and 27.64% of the budget. Investigations rose slightly by $13,840 or 2.13% to $664,428, representing 8.27%. The Cannabis Regulatory Unit increased by $6,346 or 2.2% to $294,787, making up 3.67% of the total.

7.71M 8.04M
Expenditures by Fund
Table of Contents 4.4 Police Department

FY26 Expenditures by Division
Police Operations $4,700,402 60.99%
Police Support Services $2,067,100 26.82%
Investigations $650,589 8.44%
Cannabis Regulatory Unit $288,441 3.74%
FY27 Expenditures by Division
Police Operations $4,862,832 60.45%
Police Support Services $2,221,817 27.62%
Investigations $664,428 8.26%
Cannabis Regulatory Unit $294,787 3.66%
In FY 2026-27, Police Operations expenditures increased to $4.9 million, up 4.26% from $4.7 million in FY 2025-26. This category continued to represent the largest portion of the Police Department budget, accounting for 60.43% of total expenditures, a slight decrease from 60.99% the previous year. Police Support Services saw an increase to $2.2 million in FY 2026-27, a 4.76% rise from $2.1 million in FY 2025-26. Its share of the budget also grew slightly to 27.64%, compared to 26.82% the year before. Expenditures for Investigations rose modestly to $664,428 in FY 2026-27, marking a 2.13% increase from $650,589 in FY 2025-26. However, its percentage of the total budget decreased slightly to 8.27% from 8.44%. The Cannabis Regulatory Unit budget increased to $294,787 in FY 2026-27, up 2.21% from $288,441 in FY 2025-26. Its proportion of the total budget decreased marginally to 3.67% from 3.74% the previous year.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Cannabis Regulatory Unit $294,665 $277,360 $288,441 $294,787 Police Support Services $2,066,460 $1,972,196 $2,067,100 $2,221,817 Police Operations $5,338,318 $4,417,862 $4,700,402 $4,862,832 Investigations $783,662 $741,967 $650,589 $664,428
Total Expenditures $8,483,105 $7,409,384 $7,706,532 $8,043,865

7.71M 8.04M
Expenditures by Division
Table of Contents 4.4 Police Department
City of Grover Beach Budget | 2026-27 Page 74
Expenditures by Category
Historical Expenditures by Category
Interdepartmental Charge Debt Service Minor Capital
Supplies and Services Salaries and Benefits
In FY 2026-27, total expenditures further increased by 4.3% to $8 million. Salaries and Benefits increased by 4.62% to $5.7 million, maintaining its position as the largest category at 70.94% of the total budget. Supplies and Services saw a smaller increase of 3.11% to $2 million, slightly reducing its share to 25.27%. Debt Service continued to rise by 6.8% to $289,928, accounting for 3.61% of the total. Minor Capital expenditures remained steady at $15,000, representing 0.19% of the budget, and Interdepartmental Charge stayed at zero.

FY26 Expenditures by Category
Salaries and Benefits $5,450,174 70.72%
Supplies and Services $1,969,892 25.56%
Debt Service $271,466 3.52%
Minor Capital $15,000 0.19%
FY27 Expenditures by Category
Salaries and Benefits $5,701,900 70.89%
Supplies and Services $2,037,036 25.32%
Debt Service $289,928 3.60%
Minor Capital $15,000 0.19%
In FY 2026-27, the Police Department's expenditures for Salaries and Benefits increased to $5.7 million, representing a 3.64% rise from $5.5 million in FY 2025-26. This category maintained a similar share of the total budget, accounting for 70.94% compared to

70.72% the previous year. Supplies and Services expenditures remained steady at $2 million in FY 2026-27, showing no change from the prior year. However, its proportion of the total budget slightly decreased to 25.27% from 25.56% in FY 2025-26. Debt Service costs rose to $289,928 in FY 2026-27, marking a 6.91% increase from $271,466 in FY 2025-26. This category's share of the budget also grew marginally to 3.61% from 3.52%. Minor Capital expenditures stayed constant at $15,000 for both FY 2025-26 and FY 2026- 27, maintaining a consistent budget share of 0.19%.
$6M $6M
$8M
$7M $8M $8M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M
$10M

7.71M 8.04M
Table of Contents 4.4 Police Department

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Salaries and Benefits $4,948,372 $5,494,257 $5,450,174 $5,701,900 Supplies and Services $1,974,699 $1,677,092 $1,969,892 $2,037,036 Minor Capital $1,490,806 $16,177 $15,000 $15,000
Debt Service $68,729 $221,859 $271,466 $289,928
Interdepartmental Charge $500 - - -
Total Expenditures $8,483,105 $7,409,384 $7,706,532 $8,043,865 Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Police Chief 1 1
Commander 2 2
Sergeant 5 5
Senior Police Officer 4 4
Police Officer 9 9
Detective 3 3
Part-Time Police Officer 0.5 0.5
Records / Property Technician 2 2
Management Analyst 2 2
Community Service Officer I 1.5 1.5
Community Service Officer II 1 1
Total Positions 31 31
Expenditures by Category
Table of Contents 4.4 Police Department
City of Grover Beach Budget | 2026-27 Page 76
Public Works
Mission Statement
To provide reliable, cost-effective and responsive water, wastewater and storm water services; to maintain and improve city facilities, streets, parks, vehicles and equipment in order to assure their beneficial use for the community; and to provide development review services with a goal to implement City Municipal and Development Codes in a manner that encourages investment in the community while assuring adherence to adopted standards.

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

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

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

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

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

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

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

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

FY 2025-26 Highlights
Construction of Ramona Garden Park Rehabilitation Project Commencement of sewer upgrades for existing flows project which will upsize city mains, allowing for greater capacity Hired new Senior Engineer
Continued training and development to promote upward growth and mobility for Maintenance Worker I employees Implemented water treatment and distribution certification training along with training for system operation and sample collection
Two additional Maintenance Worker I employees received water treatment and/or distribution certifications Table of Contents 4.5 Public Works

Completed Measure K-14 CIP 2295-18, micro surfacing of various streets previously completed with Measure K-14 Installed additional water main zone valves to improve operations and reduce scope of shutdowns Completed CIP 4391, tank rehabilitation of Water Tank 3 Implemented Cartegraph Asset Management program and asset input Implemented automated USA/811 utility mark-out system through the asset management program FY 2026-27 Key Department Initiatives
Onboard a new Public Works Director/City Engineer following retirement of incumbent Continue actions to remove disability accessibility barriers city-wide Continue work on Corporation Yard expansion and site improvements as funding allows Complete sidewalk infill through implementation of public/private partnerships Complete construction of Measure K-14 CIP 2295-17 (portions of Brighton, Ramona, North 9th, North 11th, North 12th) Start construction of Measure K-14 CIP 2295-19 (portions of Brighton, Ramona, North 2nd, North 5th, North 6th & North 7th) Implement critical sewer and water system upgrades as funding allows Continue to implement department recommendations from Organizational Assessment Continue to develop and implement department training programs Continue development review improvements including ongoing upgrades to City Standards and Specifications Continue to scan record plans and implement electronic filing system and GIS system Complete water supply study and present to Council and support water rate study process Develop FY 2027-31 Capital Improvement Program including Measure K-14 Funding Plan Table of Contents 4.5 Public Works
City of Grover Beach Budget | 2026-27 Page 78
Performance Measures
Performance Measure 1: Percentage of development applications returned on schedule
Percentage of development applications returned to the applicant within the City-identified 10-day review standard. As of April 2025, changed to 21-day review standard.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 90% 90% 90% 90%
Actual - 95% 23% 22%
Notes: Department began tracking this measure in FY 2022-23. Lower percentage in FY 24-25 and FY 25-26 due to workload impacts from staffing vacancies. This percentage is expected to increase as positions are filled.

Performance Measure 2: Timely responses to inquiries
Percent of customer calls returned within one day.

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

Performance Measure 3: Lane miles of repaved or repaired streets FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - - 6.61 3.0 1.0
Actual - 2.44 1.40 0
Notes: The City has delayed CIP Project 2285 (N 4th Steet) to allow a buffer period following the completion of construction on West Grand Avenue. Construction for CIP Project 2285 is expected to start in FY 26-27. CIP Project 2295-17 was delayed due to a delay to CIP 5002-2 (Sewer Upgrade Project) as a result of a wastewater rate structure challenge. With the City's increased sewer rates in FY 25-26, construction of CIP Project 2295-17 will begin in June 2026.

Table of Contents 4.5 Public Works

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

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 83% 85% 87% 89%
Actual - 90% 90% 90%
Notes: N/A
Performance Measure 5: Number of unplanned water service interruptions Number of unplanned water service interruptions in the prior fiscal year.

FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - <2 <5 <5 <5
Actual 1 6 31 20
Notes: Increased number of unplanned water service interruptions given aging infrastructure and insufficient funding to program capital improvement projects for system maintenance and improvements.

Performance Measure 6: Number of sewer system failures
Number of sewer system backups resulting in overflows in the prior fiscal year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Goal - 0 0 0 0
Actual 0 0 1 0
Notes: N/A
Table of Contents 4.5 Public Works
City of Grover Beach Budget | 2026-27 Page 80
FY26 Expenditures by Fund
Water Fund $3,116,501 47.24%
General Fund $1,882,569 28.54%
Wastewater Fund $881,967 13.37%
Gas Tax Fund $296,490 4.49%
Street Construction Designated
Fund (K-14)
$240,461 3.64%
Equipment Replacement Fund $90,737 1.38%
Local Transportation Fund (LTF) $82,400 1.25%
Water Conservation Fund $6,171 0.09%
FY27 Expenditures by Fund
Water Fund $3,210,387 50.79%
General Fund $1,699,605 26.89%
Wastewater Fund $663,687 10.50%
Gas Tax Fund $305,538 4.83%
Street Construction Designated
Fund (K-14)
$243,465 3.85%
Equipment Replacement Fund $106,545 1.69%
Local Transportation Fund (LTF) $84,872 1.34%
Water Conservation Fund $6,208 0.10%
In FY 2026-27, the Water Fund expenditure increased to $3.2 million, representing 50.79% of the total, up from $3.1 million and

47.24% in FY 2025-26. The General Fund decreased to $1.7 million or 26.89%, down from $1.9 million and 28.54% the previous year. Wastewater Fund spending declined to $663,687, accounting for 10.5%, compared to $881,967 and 13.37% in FY 2025-26. The Gas Tax Fund saw a slight increase to $305,538 or 4.83%, up from $296,490 and 4.49%. The Street Construction Designated Fund (K-14) rose marginally to $243,465, making up 3.85%, compared to $240,461 and 3.64% in FY 2025-26. Equipment Replacement Fund expenditures increased to $106,545 or 1.69%, from $90,737 and 1.38% the year before. Local Transportation Fund (LTF) spending grew slightly to $84,872, representing 1.34%, up from $82,400 and 1.25%. The Water Conservation Fund remained nearly constant at $6,208 or 0.1%, compared to $6,171 and 0.09% in FY 2025-26.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund $1,546,096 $1,591,337 $1,882,569 $1,699,605 Equipment Replacement
Fund $3,147 $192,470 $90,737 $106,545
Street Construction
Designated Fund (K-14) $210,543 $220,300 $240,461 $243,465 Gas Tax Fund $361,375 $267,574 $296,490 $305,538
Local Transportation Fund
(LTF) $84,033 $75,544 $82,400 $84,872
Transportation
Development Impact Fee
Fund
$4,179 $607 - -
Stormwater Development
Impact Fee Fund $3,550 $607 - -
Wastewater Development
Impact Fee Fund $3,550 $607 - -
Water Development
Impact Fee Fund $3,550 $607 - -

6.6M 6.32M
Expenditures by Fund
Table of Contents 4.5 Public Works

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Water Fund $3,526,667 $3,059,338 $3,116,501 $3,210,387
Water Conservation Fund $4,771 $3,387 $6,171 $6,208
Wastewater Fund $687,867 $764,273 $881,967 $663,687
Total Expenditures $6,439,327 $6,176,652 $6,597,296 $6,320,308 FY26 Expenditures by Division
Water $3,116,501 47.24%
Facility Maintenance $1,647,831 24.98%
Street Maintenance $904,635 13.71%
Wastewater $590,423 8.95%
Storm Water $291,545 4.42%
City Shop/Corp Yard $40,191 0.61%
Water Conservation $6,171 0.09%
FY27 Expenditures by Division
Water $3,210,387 50.79%
Facility Maintenance $1,451,963 22.97%
Street Maintenance $943,417 14.93%
Wastewater $340,140 5.38%
Storm Water $323,547 5.12%
City Shop/Corp Yard $44,644 0.71%
Water Conservation $6,208 0.10%
In FY 2026-27, the Water division's expenditures increased to $3.2 million, representing 50.83% of the Public Works budget, up from $3.1 million and 47.24% in FY 2025-26. Facility Maintenance expenditures decreased to $1.5 million, or 22.96%, compared to $1.6 million and 24.98% the previous year. Street Maintenance saw an increase to $941,417, accounting for 14.9% of the budget, up from $904,635 and 13.71% in FY 2025-26. Wastewater expenditures decreased significantly to $340,140, or 5.38%, from $590,423 and

8.95% in FY 2025-26. Storm Water expenditures rose to $323,547, making up 5.12% of the budget, compared to $291,545 and

4.42% the year before. The City Shop/Corp Yard budget increased slightly to $44,644, or 0.71%, from $40,191 and 0.61% in FY 2025-26. Water Conservation expenditures remained nearly constant, with a slight increase to $6,208, or 0.1%, from $6,171 and

0.09% in the previous year.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Wastewater $407,644 $473,843 $590,423 $340,140
Water $3,488,945 $3,018,673 $3,116,501 $3,210,387
Storm Water $327,341 $331,662 $291,545 $323,547
Facility Maintenance $1,241,359 $1,466,090 $1,647,831 $1,451,963 Street Maintenance $923,091 $844,382 $904,635 $943,417
City Shop/Corp Yard $46,177 $38,615 $40,191 $44,644
Water Conservation $4,771 $3,387 $6,171 $6,208
Total Expenditures $6,439,327 $6,176,652 $6,597,296 $6,320,308

6.6M 6.32M
Expenditures by Division
Table of Contents 4.5 Public Works
City of Grover Beach Budget | 2026-27 Page 82
Expenditures by Category
Historical Expenditures by Category
Major Capital Interdepartmental Charge Debt Service
Other Minor Capital Salaries and Benefits
Supplies and Services
In FY 2026-27, the total budget decreased by 4.26% to $6.3 million from FY 2025-26. Supplies and Services slightly declined by

0.79% to $4 million but increased as a share of the total budget to 64.05%. Salaries and Benefits rose by 6.32% to $1.8 million, increasing their share to 29.06%. Debt Service decreased by 11.39% to $329,865, accounting for 5.22% of the budget. Minor Capital expenditures dropped sharply by 75.79% to $100,750, reducing its share to 1.6%. Major Capital remained steady at $5,000, and the Other and Interdepartmental Charge categories remained at zero.

FY26 Expenditures by Category
Supplies and Services $4,077,518 61.81%
Salaries and Benefits $1,726,299 26.17%
Minor Capital $416,200 6.31%
Debt Service $372,279 5.64%
Major Capital $5,000 0.08%
FY27 Expenditures by Category
Supplies and Services $4,049,292 64.07%
Salaries and Benefits $1,835,402 29.04%
Debt Service $329,865 5.22%
Minor Capital $100,750 1.59%
Major Capital $5,000 0.08%
In FY 2026-27, expenditures for Supplies and Services in Public Works decreased slightly to $4 million, representing 64.05% of the total budget, down from $4.1 million and 61.81% in FY 2025-26. Salaries and Benefits increased to $1.8 million, or 29.06% of the budget, compared to $1.7 million and 26.17% the previous year. Debt Service expenditures declined to $329,865, accounting for

5.22% of the budget, down from $372,279 and 5.64% in FY 2025-26. Minor Capital spending saw a notable decrease to $100,750, or

1.6%, from $416,200 and 6.31% the year before. Major Capital remained constant at $5,000, representing 0.08% of the budget in both years.
$6M $6M
$6M $6M $7M $6M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
0 $3M
$5M
$8M

6.6M 6.32M
Table of Contents 4.5 Public Works

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Salaries and Benefits $1,700,644 $1,771,479 $1,726,299 $1,835,402 Supplies and Services $3,597,610 $3,720,090 $4,077,518 $4,049,292 Minor Capital $717,421 $274,562 $416,200 $100,750
Major Capital $4,401 $3,175 $5,000 $5,000
Debt Service $92,822 $88,281 $372,279 $329,865
Interdepartmental Charge $11,564 - - -
Other $314,866 $319,065 - -
Total Expenditures $6,439,327 $6,176,652 $6,597,296 $6,320,308 Full-Time Equivalent Positions
FY 2025-26 FY 2026-27
Public Works Director 1 1
Administrative Analyst - Confidential 1 1
Capital Improvement Project Manager 1 1
Associate Engineer 1 1
Senior Engineer 1 1
Public Works Supervisor 1 1
Public Works Superintendent 1 1
Maintenance Worker III 1 1
Maintenance Worker II 2 2
Maintenance Worker I 5 5
Fleet Maintenance Coordinator 1 1
Administrative Assistant II 0.75 0.75
Total Positions 16.75 16.75
Expenditures by Category
Table of Contents 4.5 Public Works
City of Grover Beach Budget | 2026-27 Page 84
Non-departmental
Overview
In addition to expenditures that are directly related to departmental operations, there are also significant expenditures that are not directly attributable to a particular department. The largest of the non-departmental expenditures is related to the City’s contract with the Five Cities Fire Authority (FCFA) for fire protection and suppression services, which totals $$3,078,963.00 in FY 2026-27. Other non-departmental expenditures for FY 2026-27 include unfunded pension liability costs ($1,581,117), liability insurance premiums ($554,792), and contract City Attorney legal services ($792,402) which includes Water Fund expenses for Lake Lopez Litigation at $500,000.

FY26 Expenditures by Fund
General Fund $8,175,395 72.26%
Water Fund $1,239,845 10.96%
Wastewater Fund $531,280 4.70%
Local Transportation Fund (LTF) $521,270 4.61%
Parks Construction Fund $342,361 3.03%
Parks Facilities Development
Impact Fee Fund
$301,128 2.66%
Recreation Facilities Development
Impact Fee Fund
$100,129 0.89%
Trust and Agency Fund $56,760 0.50%
Street Construction Designated
Fund (K-14)
$45,600 0.40%
FY27 Expenditures by Fund
General Fund $5,909,371 70.37%
Water Fund $990,000 11.79%
Wastewater Fund $864,822 10.30%
Road Maintenance and
Rehabilitation Account
$358,840 4.27%
Local Transportation Fund (LTF) $200,000 2.38%
Gas Tax Fund $50,000 0.60%
Street Construction Designated
Fund (K-14)
$25,000 0.30%
In FY 2026-27, General Fund expenditure decreased to $5.9 million, representing 80.52% of the total, down from $8.4 million and

75.51% in FY 2025-26. This indicates a reduction in the General Fund amount by approximately 29.76% while its share of the total expenditures increased by 5.01%. The Wastewater Fund saw an increase in both amount and proportion, rising to $864,822 or

11.78% in FY 2026-27 from $531,280 or 4.79% in FY 2025-26. This change reflects a 62.82% increase in expenditure and a 6.99% increase in its share of the total. The Water Fund expenditure decreased to $490,000 in FY 2026-27, which is 6.68% of the total, compared to $739,845 and 6.67% in FY 2025-26. This represents a 33.78% decrease in amount, while the percentage share

11.3M 8.4M
Table of Contents 4.6 Non-departmental

remained nearly constant with a slight increase of 0.01 percentage points. The Gas Tax Fund expenditure decreased to $50,000 or

0.68% in FY 2026-27 from $75,000 or 0.68% in FY 2025-26, showing a 33.33% reduction in amount with the percentage share remaining the same.

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
General Fund $5,904,723 $11,364,161 $8,175,395 $5,909,371 Street Construction
Designated Fund (K-14) - - $45,600 $25,000
Gas Tax Fund $3,000 $100,000 - $50,000
Road Maintenance and
Rehabilitation Account $299,000 $299,999 - $358,840
Local Transportation Fund
(LTF) - $1,800,000 $521,270 $200,000
Parks Construction Fund - $242,196 $342,361 -
Fire Development Impact
Fee Fund $8,000 - - -
Stormwater Development
Impact Fee Fund - $160,500 - -
Wastewater Development
Impact Fee Fund $5,596 - - -
Parks Facilities
Development Impact Fee
Fund
$231,170 $77,325 $301,128 -
Recreation Facilities
Development Impact Fee
Fund
- - $100,129 -
Water Development
Impact Fee Fund $25,000 - - -
State Mandated ADA Fund $6,000 - - -
CDBG - Non Entitlement
Fund - $489,014 - -
Trust and Agency Fund - - $56,760 -
Water Fund $852,224 $1,819,777 $1,239,845 $990,000
Wastewater Fund $411,925 $536,979 $531,280 $864,822
Total Expenditures $7,746,638 $16,889,952 $11,313,768 $8,398,033 Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Non-Departmental $7,746,638 $16,889,952 $11,313,768 $8,398,033 Total Expenditures $7,746,638 $16,889,952 $11,313,768 $8,398,033 Expenditures by Fund
Expenditures by Division
Table of Contents 4.6 Non-departmental
City of Grover Beach Budget | 2026-27 Page 86
Expenditures by Category
Historical Expenditures by Category
Interdepartmental Charge Other Debt Service
Minor Capital Salaries and Benefits Supplies and Services Transfers Out
In FY 2026-27, total expenditures further declined by 33.81% to $7.3 million from FY 2025-26. Supplies and Services became the largest category at $4.2 million, making up 57.1% of the total, despite a slight decrease of 0.43%. Salaries and Benefits increased by

28.21% to $1.6 million, representing 21.54% of the budget. Transfers Out continued to decrease sharply by 78.01% to $1.2 million, now 16.36% of total expenditures. Debt Service nearly doubled with a 97.52% increase to $366,633, accounting for 5% of the total.

Minor Capital, Interdepartmental Charge, and Other categories remained at $0.

FY26 Expenditures by Category
Transfers Out $5,186,254 45.84%
Supplies and Services $4,708,668 41.62%
Salaries and Benefits $1,233,228 10.90%
Debt Service $185,618 1.64%
FY27 Expenditures by Category
Supplies and Services $4,690,443 55.85%
Transfers Out $1,759,840 20.96%
Salaries and Benefits $1,581,117 18.83%
Debt Service $366,633 4.37%
In FY 2026-27, Supplies and Services expenditures remained steady at $4.2 million but increased as a proportion of the total from

37.95% in FY 2026 to 57.1% in FY 2027. This category became the largest share of the budget in FY 2026-27, surpassing Transfers Out. Salaries and Benefits rose from $1.2 million in FY 2025-26 to $1.6 million in FY 2026-27, marking a 33.33% increase and growing from 11.12% to 21.54% of the total expenditures. This represents a notable increase in both dollar amount and budget share.

Transfers Out decreased significantly from $5.5 million in FY 2026 to $1.2 million in FY 2026-27, a 78.18% reduction. Its share of the budget dropped from 49.25% to 16.36%, moving from the largest category in FY 2025-26 to the third largest in FY 2026-27. Debt Service expenditures increased from $185,618 in FY 2025-26 to $366,633 in FY 2026-27, a 97.5% increase. Its budget share also rose from 1.67% to 5%, indicating a larger allocation toward debt-related costs in FY 2026-27. $10M
$6M
$8M
$17M
$11M
$8M
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027
-$5M
0 $5M
$10M
$15M
$20M

11.3M 8.4M
Table of Contents 4.6 Non-departmental

Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Transfers Out $1,939,260 $9,615,396 $5,186,254 $1,759,840 Salaries and Benefits $1,116,503 $1,499,742 $1,233,228 $1,581,117 Supplies and Services $4,240,493 $5,394,063 $4,708,668 $4,690,443 Minor Capital $524,121 $349,501 - -
Debt Service $8,199 $31,249 $185,618 $366,633
Interdepartmental Charge -$81,964 - - -
Other $26 - - -
Total Expenditures $7,746,638 $16,889,952 $11,313,768 $8,398,033 Expenditures by Category
Table of Contents 4.6 Non-departmental
City of Grover Beach Budget | 2026-27 Page 88
Funds Overview
Table of Contents 5.0 Funds Overview

General Fund - 101
The General Fund is used to account for most financial resources and activities governed by the appropriation process. It includes all revenues related to taxes, changes for services, permits and fees, as well as some intergovernmental revenues. Expenditures include those most common to general government, such as public safety, administration, and public works.

General Fund Summary
General Fund Revenues
and Expenditures
Sources of Funding
FY 2026-27
Budget
Revenues
Property Tax $6,850,200
Sales Tax $6,178,777
Cannabis Tax $1,060,593
Transient Occupancy Tax (TOT) $1,221,000
Franchise Fees $1,023,000
Other Taxes $239,990
Licenses & Permits $562,380
Fines $38,000
Use of Money and Property $421,658
Intergovernmental $167,195
Charges for Current Services $922,888
Transfers In $703,000
Total Revenues $19,388,681
Expenditures
Administrative Services $693,863
City Manager's Office $1,942,426
Community Development $1,532,469
Police $7,607,436
Public Works $1,699,605
Non-Departmental $5,629,371
Transfers Out $280,000
Total Expenditures $19,385,170
Revenues Over/(Under) Expenditures $3,511
Table of Contents 5.1 General Fund
City of Grover Beach Budget | 2026-27 Page 90
Equipment Replacement Fund - 105
The equipment replacement fund is a separate fund established for the purpose of making expenditures for major repair or replacement of equipment necessary for continuing operation of city services. This includes vehicles or major pieces of equipment. In the City's Financial Statements, the General Fund and Equipment Replacement Fund are reported together.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $50,000 $106,448 $201,512 $182,309 Revenues
Transfers In $136,667 $560,000 $368,000 $333,000
Total Revenues $136,667 $560,000 $368,000 $333,000
Expenditures
Supplies and Services $9,093 $50,607 $25,000 $25,000
Minor Capital $2,397 $192,470 - $58,350
Debt Service $68,729 $221,859 $362,203 $338,123
Total Expenditures $80,219 $464,936 $387,203 $421,473
Total Revenues Less
Expenditures $56,448 $95,064 -$19,203 -$88,473
Ending Fund Balance $106,448 $201,512 $182,309 $93,836
Table of Contents 5.1.1 Equipment Replacement Fund

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

FY 2025-26 "Other" is the issuance of the $5 million in Measure K-14 street repair bonds.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $5,838,955 $3,665,166 $3,252,495 $7,093,786 Revenues
Transfers In $38,000 $40,000 $40,000 $40,000
Use of Money and Property $211,883 $129,408 $10,000 $10,600 Charges for Services $800 $18,000 $50,000 $53,000
Other - - $5,000,000 -
Total Revenues $250,683 $187,408 $5,100,000 $103,600
Expenditures
Transfers Out - - $25,000 $25,000
Salaries and Benefits $205,829 $213,761 $235,568 $238,427 Supplies and Services $4,713 $6,539 $25,493 $5,038
Major Capital $2,213,929 $378,683 $2,400,000 $710,000
Total Expenditures $2,424,471 $598,983 $2,686,061 $978,465 Total Revenues Less
Expenditures -$2,173,789 -$411,575 $2,413,939 -$874,865 Ending Fund Balance $3,665,166 $3,253,591 $5,666,434 $6,218,921 Table of Contents 5.2 Street Construction Designated Fund (K-14) City of Grover Beach Budget | 2026-27 Page 92
Gas Tax Fund - 205
The Gas Tax funds are restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs of the public street system. Income is derived from state excise taxes on fuel and is allocated to the City in accordance with Street and Highway Code Section 2103-2108.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $116,976 $119,960 $161,476 $252,235 Revenues
Use of Money and Property $2,719 $3,856 $3,000 $3,180
Revenue from Other Agencies $363,070 $374,585 $384,249 $407,304 Charges for Services $1,570 - - -
Total Revenues $367,359 $378,441 $387,249 $410,484
Expenditures
Transfers Out $3,000 $100,000 - $50,000
Supplies and Services $361,375 $267,574 $296,490 $305,538 Total Expenditures $364,375 $367,574 $296,490 $355,538
Total Revenues Less
Expenditures $2,984 $10,867 $90,759 $54,946
Ending Fund Balance $119,960 $130,827 $252,235 $307,181 Table of Contents 5.3 Gas Tax Fund

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

FY 2025-26 Carryover amount included in Fund Balance.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $333,508 $347,950 $443,527 $792,397 Revenues
Use of Money and Property $15,100 $14,306 $2,500 -
Revenue from Other Agencies $298,342 $381,270 $346,370 $350,000 Total Revenues $313,442 $395,576 $348,870 $350,000
Expenditures
Transfers Out $299,000 $299,999 - $358,840
Total Expenditures $299,000 $299,999 - $358,840
Total Revenues Less
Expenditures $14,442 $95,577 $348,870 -$8,840
Ending Fund Balance $347,950 $443,527 $792,397 $783,557 Table of Contents 5.4 Road Maintenance and Rehabilitation Account City of Grover Beach Budget | 2026-27 Page 94
Local Transportation Fund (LTF) - 215
The Local Transportation Fund accounts for apportioned revenue from the state and is restricted in use to acquisition of rights of way, construction, maintenance, engineering, and administrative costs associated with the public street system, as well as transit-related costs. Income derived from state and federal grants generally administered by SLOCOG and Caltrans Local Assistance and include State Highway Account Urban and Regional (USHA and RSHA) Funds.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $1,790,108 $2,054,828 $535,828 $197,523 Revenues
Use of Money and Property $61,168 $56,478 $1,500 $1,500 Revenue from Other Agencies $292,085 $283,822 $268,500 $259,601 Total Revenues $353,253 $340,300 $270,000 $261,101
Expenditures
Transfers Out - $1,800,000 $521,270 $200,000
Supplies and Services $88,533 $80,194 $87,035 $84,872
Total Expenditures $88,533 $1,880,194 $608,305 $284,872 Total Revenues Less
Expenditures $264,720 -$1,539,894 -$338,305 -$23,771
Ending Fund Balance $2,054,828 $514,934 $197,523 $173,752 Table of Contents 5.5 Local Transportation Fund (LTF)

Public Safety Grant Fund - 230
The purpose of the Public Safety Grant Fund is to receive and track all COPS/SLESF Grant monies. The Citizens Option for Public Safety Program's Supplemental Law Enforcement Services Fund (COPS/SLESF) grant was established in 1996. Compliant cities are allocated a proportionate share of COPS funds by the State exclusively for the purpose of funding supplemental front-line law enforcement services.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $327,186 $148,185 $222,269 $277,269 Revenues
Use of Money and Property $10,519 $5,618 $1,500 $1,500
Revenue from Other Agencies $186,159 $194,663 $200,000 $206,000 Total Revenues $196,678 $200,281 $201,500 $207,500
Expenditures
Supplies and Services $240,736 $54,107 $131,500 $131,500 Minor Capital $134,944 $72,090 $15,000 $15,000
Total Expenditures $375,679 $126,197 $146,500 $146,500
Total Revenues Less
Expenditures -$179,001 $74,084 $55,000 $61,000
Ending Fund Balance $148,185 $222,269 $277,269 $338,269 Table of Contents 5.6 Public Safety Grant Fund
City of Grover Beach Budget | 2026-27 Page 96
Parks Construction Fund - 240
This fund receives Park-In-Lieu fees from developers and is restricted to the acquisition, construction, major improvements, and rehabilitation.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $49,735 $176,103 $148,723 $7,162 Revenues
Use of Money and Property $2,573 $8,491 $800 -
Charges for Services $123,795 $206,325 $200,000 -
Total Revenues $126,368 $214,816 $200,800 -
Expenditures
Transfers Out - $242,196 $342,361 -
Total Expenditures - $242,196 $342,361 -
Total Revenues Less
Expenditures $126,368 -$27,380 -$141,561 -
Ending Fund Balance $176,103 $148,723 $7,162 $7,162
Table of Contents 5.7 Parks Construction Fund

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

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $11,285 $189,865 $319,485 $500,359 Revenues
Use of Money and Property $5,419 $7,217 $500 -
Charges for Services $72,898 $123,452 $180,374 $72,560
Total Revenues $78,317 $130,669 $180,874 $72,560
Expenditures
Supplies and Services $4,179 $607 - -
Total Expenditures $4,179 $607 - -
Total Revenues Less
Expenditures $74,138 $130,062 $180,874 $72,560
Ending Fund Balance $85,423 $319,927 $500,359 $572,919
Table of Contents 5.8 Transportation Development Impact Fee Fund City of Grover Beach Budget | 2026-27 Page 98
Law Enforcement Development Impact Fee Fund - 251
The Law Enforcement Development Impact Fee Fund accounts for fees generated by development. These funds may be used for law enforcement improvements related to expansion.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $13,534 $19,511 $29,698 $62,341
Revenues
Use of Money and Property $566 $717 $200 -
Charges for Services $7,889 $9,470 $32,443 $38,141
Total Revenues $8,456 $10,187 $32,643 $38,141
Expenditures
Supplies and Services $2,479 - - -
Total Expenditures $2,479 - - -
Total Revenues Less
Expenditures $5,977 $10,187 $32,643 $38,141
Ending Fund Balance $19,511 $29,698 $62,341 $100,482
Table of Contents 5.9 Law Enforcement Development Impact Fee Fund

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

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $27,807 $30,265 $39,543 $69,421
Revenues
Use of Money and Property $990 $991 $400 -
Charges for Services $5,018 $8,894 $29,478 $35,514
Total Revenues $6,008 $9,885 $29,878 $35,514
Expenditures
Supplies and Services $3,550 $607 - -
Total Expenditures $3,550 $607 - -
Total Revenues Less
Expenditures $2,458 $9,278 $29,878 $35,514
Ending Fund Balance $30,265 $39,543 $69,421 $104,935
Table of Contents 5.10 Administrative Development Impact Fee Fund City of Grover Beach Budget | 2026-27 Page 100
Fire Development Impact Fee Fund - 253
The Fire Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Fire improvements related to expansion.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $13,603 $10,523 $21,763 $30,548
Revenues
Use of Money and Property $585 $481 $200 -
Charges for Services $7,443 $11,809 $8,585 $6,810
Total Revenues $8,028 $12,290 $8,785 $6,810
Expenditures
Transfers Out $8,000 - - -
Supplies and Services $3,550 $607 - -
Total Expenditures $11,550 $607 - -
Total Revenues Less
Expenditures -$3,522 $11,682 $8,785 $6,810
Ending Fund Balance $10,081 $22,205 $30,548 $37,358
Table of Contents 5.11 Fire Development Impact Fee Fund

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

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $148,073 $163,541 $31,483 $61,886 Revenues
Use of Money and Property $5,112 $4,706 $2,100 -
Charges for Services $13,906 $24,343 $28,303 $47,997
Total Revenues $19,018 $29,049 $30,403 $47,997
Expenditures
Transfers Out - $160,500 - -
Supplies and Services $3,550 $607 - -
Total Expenditures $3,550 $161,107 - -
Total Revenues Less
Expenditures $15,468 -$132,058 $30,403 $47,997
Ending Fund Balance $163,541 $31,483 $61,886 $109,883
Table of Contents 5.12 Stormwater Development Impact Fee Fund City of Grover Beach Budget | 2026-27 Page 102
Wastewater Development Impact Fee Fund - 255
The Wastewater Development Impact Fee Fund accounts for fees generated by development. These funds may be used for wastewater-related expansion.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $232,719 $300,951 $412,330 $469,101 Revenues
Use of Money and Property $9,077 $9,295 $4,200 -
Charges for Services $67,662 $103,133 $52,571 $43,994
Total Revenues $76,739 $112,429 $56,771 $43,994
Expenditures
Transfers Out $5,596 - - -
Supplies and Services $3,550 $607 - -
Total Expenditures $9,146 $607 - -
Total Revenues Less
Expenditures $67,592 $111,821 $56,771 $43,994
Ending Fund Balance $300,311 $412,772 $469,101 $513,095 Table of Contents 5.13 Wastewater Development Impact Fee Fund

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

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $216,716 $96,800 $194,038 $142,506 Revenues
Use of Money and Property $6,799 $5,580 $5,500 -
Charges for Services $108,003 $169,590 $142,968 $63,372 Total Revenues $114,801 $175,170 $148,468 $63,372
Expenditures
Transfers Out $231,170 $77,325 $301,128 -
Supplies and Services $3,550 $607 - -
Total Expenditures $234,720 $77,932 $301,128 -
Total Revenues Less
Expenditures -$119,919 $97,238 -$152,660 $63,372
Ending Fund Balance $96,797 $194,038 $41,378 $205,878
Table of Contents 5.14 Parks Facilities Development Impact Fee Fund City of Grover Beach Budget | 2026-27 Page 104
Recreation Facilities Development Impact Fee Fund - 257 The Recreation Facilities Development Impact Fee Fund accounts for fees generated by development. These funds may be used for Recreation related expansion.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $49,524 $58,458 $90,775 $945
Revenues
Use of Money and Property $1,819 $2,574 $1,600 -
Charges for Services $10,665 $30,350 $37,000 $11,329
Total Revenues $12,484 $32,924 $38,600 $11,329
Expenditures
Transfers Out - - $100,129 -
Supplies and Services $3,550 $607 - -
Total Expenditures $3,550 $607 $100,129 -
Total Revenues Less
Expenditures $8,934 $32,317 -$61,529 $11,329
Ending Fund Balance $58,458 $90,775 $29,246 $12,274
Table of Contents 5.15 Recreation Facilities Development Impact Fee Fund

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

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance - $36,892 $147,097 $206,755
Revenues
Use of Money and Property $1,102 $3,052 - -
Charges for Services $65,451 $107,753 $59,658 $53,287
Total Revenues $66,553 $110,805 $59,658 $53,287
Expenditures
Transfers Out $25,000 - - -
Supplies and Services $3,550 $607 - -
Total Expenditures $28,550 $607 - -
Total Revenues Less
Expenditures $38,003 $110,198 $59,658 $53,287
Ending Fund Balance $38,003 $147,090 $206,755 $260,042
Table of Contents 5.16 Water Development Impact Fee Fund City of Grover Beach Budget | 2026-27 Page 106
Subsidized Taxi Fund - 265
The Subsidized Senior Transportation Fund accounts for expenditures related to the Senior Transportation program funded by Local Transportation Funds.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $22,942 $23,696 $24,323 $24,996
Revenues
Use of Money and Property $754 $627 $300 -
Total Revenues $754 $627 $300 -
Expenditures
Total Expenditures - - - -
Total Revenues Less
Expenditures $754 $627 $300 -
Ending Fund Balance $23,696 $24,323 $24,623 $24,996
Table of Contents 5.17 Subsidized Taxi Fund

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

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $28,028 $33,393 $65,998 $65,998
Revenues
Revenue from Other Agencies $597,626 $852,413 - -
Total Revenues $597,626 $852,413 - -
Expenditures
Transfers Out - $489,014 - -
Salaries and Benefits $11,914 $10,264 - -
Supplies and Services $580,347 $320,530 - -
Total Expenditures $592,261 $819,808 - -
Total Revenues Less
Expenditures $5,365 $32,605 - -
Ending Fund Balance $33,393 $65,998 $65,998 $65,998
Table of Contents 5.18 CDBG - Non Entitlement Fund
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Home Grant Fund - 275
The Home Investment Partnership Program (HOME) funds can be used for First Time Homebuyer Program, First Time Homebuyer Project, Owner Occupied Rehabilitation Program, Rental Rehabilitation, Rental New Construction Project, and Tenant-Based Rental Assistance Programs.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $122,500 $122,500 $122,500 $122,500 Revenues
Total Revenues - - - -
Expenditures
Total Expenditures - - - -
Total Revenues Less
Expenditures - - - -
Ending Fund Balance $122,500 $122,500 $122,500 $122,500 Table of Contents 5.19 Home Grant Fund

State Mandated ADA Fund - 260
The State Mandated ADA Fund accounts for the State Mandated Disability and Education Fee (SB 1186 Steinberg). Cities are required to collect four dollars from every business license or equivalent instrument. Cities are required to transmit thirty percent of every dollar to the State. Cities keep 70% of every dollar to be used for ADA Certified Access Specialists Program.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $10,028 $9,619 $15,747 $21,747
Revenues
Charges for Services $5,591 $5,414 $6,000 -
Total Revenues $5,591 $5,414 $6,000 -
Expenditures
Transfers Out $6,000 - - -
Total Expenditures $6,000 - - -
Total Revenues Less
Expenditures -$409 $5,414 $6,000 -
Ending Fund Balance $9,619 $15,033 $21,747 $21,747
Table of Contents 5.20 State Mandated ADA Fund
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Capital Projects Fund - 301
The Capital Projects Fund is used for all capital improvement projects, except for Fund 201 Street Construction Designated Fund and the Enterprise Fund capital improvement projects that are included in those respective funds. Capital transfers are made to the Capital Projects Fund to finance capital improvement projects.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance - -$99,300 $454,190 $633,742
Revenues
Transfers In $1,133,737 $8,317,579 $4,070,104 $658,840
Charges for Services - $47,823 - -
Total Revenues $1,133,737 $8,365,403 $4,070,104 $658,840 Expenditures
Major Capital $1,233,037 $7,811,913 $3,890,552 $658,840 Total Expenditures $1,233,037 $7,811,913 $3,890,552 $658,840 Total Revenues Less
Expenditures -$99,300 $553,490 $179,552 -
Ending Fund Balance -$99,300 $454,190 $633,742 $633,742 Table of Contents 5.21 Capital Projects Fund

Underground Utilities Fund - 305
The Underground Utilities Fund accounts for underground utility developer fees restricted to the placement of utility lines underground in accordance with City Council priorities set by resolution.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $232,332 $239,965 $244,856 $248,856 Revenues
Use of Money and Property $7,633 $6,323 $4,000 -
Total Revenues $7,633 $6,323 $4,000 -
Expenditures
Total Expenditures - - - -
Total Revenues Less
Expenditures $7,633 $6,323 $4,000 -
Ending Fund Balance $239,965 $246,288 $248,856 $248,856 Table of Contents 5.22 Underground Utilities Fund
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Water Fund - 601
The Water Fund consists of the City's water system, including water mains, water supply, storage and water sampling. The Water Enterprise Fund serves approximately 5,000 customers.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $5,449,044 $4,047,221 $3,815,123 $3,083,307 Revenues
Transfers In $25,000 - $25,000 $25,000
Use of Money and Property $133,225 $101,314 $100,000 $100,000 Revenue from Other Agencies - $719,696 - -
Charges for Services $4,191,728 $4,257,870 $4,359,800 $4,359,800 Total Revenues $4,349,953 $5,078,880 $4,484,800 $4,484,800 Expenditures
Transfers Out $492,499 $458,153 $525,000 $490,000
Salaries and Benefits $843,609 $872,180 $798,110 $806,562 Supplies and Services $2,579,644 $3,550,814 $3,080,602 $3,049,589 Minor Capital $630,719 $74,593 $84,950 $42,400
Major Capital $874,390 $22,703 $303,338 $20,000
Debt Service $92,822 $88,281 $281,542 $281,670
Other $238,094 $244,254 - -
Total Expenditures $5,751,776 $5,310,978 $5,073,542 $4,690,221 Total Revenues Less
Expenditures -$1,401,823 -$232,098 -$588,742 -$205,421
Ending Fund Balance $4,047,221 $3,815,123 $3,226,381 $2,877,886 Table of Contents 5.23 Water Fund

Water Conservation Fund - 602
The Water Conservation Fund provides water conservation rebates to water customers for turf removal, smart irrigation, low flow toilet installations, and energy efficient washing machines.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $356,270 $363,132 $369,281 $366,110 Revenues
Use of Money and Property $11,633 $9,536 $3,000 -
Total Revenues $11,633 $9,536 $3,000 -
Expenditures
Salaries and Benefits $370 $212 $270 $280
Supplies and Services - - $901 $928
Major Capital $4,401 $3,175 $5,000 $5,000
Total Expenditures $4,771 $3,387 $6,171 $6,208
Total Revenues Less
Expenditures $6,862 $6,149 -$3,171 -$6,208
Ending Fund Balance $363,132 $369,281 $366,110 $359,902 Table of Contents 5.24 Water Conservation Fund
City of Grover Beach Budget | 2026-27 Page 114
Wastewater Fund - 603
The Wastewater Fund consists of the City's Wastewater collection system and the South San Luis Obispo County Sanitation District billing. The Wastewater Enterprise Fund serves approximately 5,000 customers. The South San Luis Obispo County Sanitation District (District) sets their fees for the processing of wastewater. The City provides billing services for the District and forwards the collection of fees billed to the district monthly.

Comprehensive Fund Summary
Category FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Revised Budget FY 2026-27 Budget
Beginning Fund Balance $3,326,851 $3,695,467 $3,439,381 $3,940,942 Revenues
Transfers In $6,106 - - -
Use of Money and Property $123,837 $134,907 $84,256 $10,600 Revenue from Other Agencies $9 - - -
Charges for Services $1,799,779 $1,325,261 $1,562,935 $1,809,133 Other - - $4,200,000 $152,000
Total Revenues $1,929,731 $1,460,168 $5,847,191 $1,971,733 Expenditures
Transfers Out $240,008 $332,564 $298,150 $356,000
Salaries and Benefits $769,908 $811,273 $676,732 $814,459 Supplies and Services $453,842 $469,892 $447,754 $475,411 Minor Capital - - $243,750 -
Major Capital - -$12,900 $3,519,243 $240,000
Debt Service - - $160,000 $341,013
Other $102,260 $115,425 - -
Total Expenditures $1,566,019 $1,716,254 $5,345,630 $2,226,883 Total Revenues Less
Expenditures $363,713 -$256,086 $501,561 -$255,150
Ending Fund Balance $3,690,564 $3,439,381 $3,940,942 $3,685,792 Table of Contents 5.25 Wastewater Fund

Capital Improvement Program
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Appendix
Table of Contents 7.0 Appendix
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Financial Policies
The cornerstone of municipal financial management is a sound policy that sets forth guidelines in the areas of revenues, operating expenditures, investments, reserves, financial reporting, capital improvements, and budgeting. Elected officials and appointed staff are accountable for public funds and responsible for the wise management of municipal finances. The community is entitled to reports that clearly communicate the financial health of the City. The following policies will guide and influence the financial management practices of the City of Grover Beach.

Budget & Reporting
The City Manager will provide a biennial budget to the City Council for review and adoption by June 30th. In year two of the two-year cycle, the budget will be approved for second year appropriations but will not require a full budget hearing given passage of the budget in the preceding year.

The City's budgetary system will be integrated and compatible with the accounting system, and the City Budget will be prepared on a basis in conformance with Generally Accepted Accounting Principles (GAAP).

The Mid-Year Budget Review and Financial Forecast will be presented no later than the first regular City Council meeting in March of each year. The Mid-Year Budget Review and Financial Forecast will include the current status of revenue collections and budget expenditures, economic trends, and state budget deliberations, as well as any proposed amendments to the current year budget.

Annually, the City may seek the California Society of Municipal Finance Officers (CSMFO) award of Excellence for Municipal Budgeting. Annually, the City may seek the Government Finance Officers Association (GFOA) Certificate of Achievement for Distinguished Budget Presentation award.

Annually, the City's Comprehensive Annual Financial Report (CAFR) will be prepared by an independent auditor in accordance with Government Auditing Standards issued by the Comptroller General of the United States. Annually, the City may seek the GFOA Certificate of Achievement for Excellence in Financial Reporting.

Resources
Resources are defined as revenues collected during one fiscal year, as well as resources carried over from prior years. Revenues may be ongoing or one-time in nature, but resources from prior years are always one-time in nature. The following policies apply to resources:

One-time resources will be used for one-time expenditures or enhancement of reserves rather than funding ongoing services.

All revenue forecasts will reflect realistic assessments of future conditions.

Regular reports comparing actual to budgeted revenues will be prepared by City staff for the City Council.

All grant applications shall obtain City Manager’s authorization prior to submission of the grant application and acceptance of the award by City Council.

All grants will be evaluated to determine the long-term operating and maintenance costs associated with the grant prior to acceptance of the grant award by City Council.

All grants are required to have expense and revenue appropriations in the budget for which they are planned.

Expenditures
Expenditures are payments made to employees, vendors, or contractors supplying goods or services to the City, except as provided in GBMC Section 2107.1. All expenditures must be made consistent with appropriations approved by the City Council in the Annual Appropriation Resolution.

Regular reports comparing budget expenditures to actual expenditures will be prepared by City staff for the City Council's information.

Table of Contents 7.1 Budget Policies

When new operating programs or capital projects are proposed, staff will provide the City Council with an analysis of the one-time and ongoing costs associated with the program or project.

Except for initial expenditures for the creation of new programs or during periods of economic distress which result in reductions in local revenues or state funding for municipal activities, all ongoing costs for operating programs shall be paid from the ongoing revenues.

Reserves
It shall be the City's policy to draw down reserves consistent with the following priorities:

The use of reserves for one-time expenditures that generates ongoing cost savings or cost avoidance.

The use of reserves for one-time expenditures that generates ongoing revenue enhancements.

The use of reserves for a one-time expenditure that leverages the expenditure of significant public or private investment in the City by other entities.

The use of reserves to offset shortfalls in the collection of revenues.

The use of reserves to offset unanticipated increases in expenditures for current programs or projects.

General Fund Reserves
The General Fund Reserves for the City is established as a minimum of 25%. Reserves of 25% is comprised of a General Reserve and Emergency Reserve as described below:

General Fund-General Reserve
The City hereby establishes a General Reserve of 15% of the current fiscal year's General Fund operating budget. The specific purpose of the General Reserve is to provide funding to meet operational appropriation requirements if the City experiences shortfalls in the collection of General Fund revenues or major unanticipated increases in expenditures.

Any transfer of funds from the General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.

General Fund-Emergency Reserve
The City hereby establishes an Emergency Reserve of not less than 10% of the General Fund operating budget. This reserve is established for the purpose of providing emergency funding because of a declared emergency or to fund an unanticipated urgent event affecting or threatening the public health, safety, and welfare of the City of Grover Beach.

Any transfer of funds from the Emergency Reserve may only be made upon City Council's approval of an amendment to the Annual Appropriation Resolution, after the City Council's finding that the guidelines established in the Resolution have been met.

Equipment Replacement Fund (ERF)
Equipment Replacement Fund will reserve funding to establish an ongoing source to accumulate capital for the long-term replacement of the City’s capital equipment including vehicles, trucks, and any piece of equipment of depreciable value.

Allocations to the ERF will be made by using the total amount of annual depreciation for an asset’s value. When an asset’s value is fully depreciated, it should be replaced.

Facility Reserve Fund
Facility Reserve Fund will be established and funded annually by the discretion of the City Manager. Annual appropriations to the Facility Reserve Fund should be guided by the total anticipated cost of facility or facility improvements spread out by the number of years before the facility or facility improvements are made.

Water Enterprise Fund-General Reserve
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The City hereby establishes a General Reserve of not less than 10% of the current fiscal year Water Fund operating budget.

The Water Fund's General Reserve should be increased to an amount greater than 10% when economic conditions warrant.

The specific purpose of the General Reserve is to provide funding to meet operational appropriation requirements in the event that the City experiences shortfalls in the collection of Water Fund revenues or unanticipated increases in expenditures.

Any transfer of funds from the Water Fund's General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.

Wastewater Enterprise Fund-General Reserve
The City hereby establishes a General Reserve of not less than 10% of the current fiscal year Wastewater Fund operating budget. The Wastewater Fund Reserves should be increased to an amount greater than 10% when economic conditions warrant. The specific purpose of the General Reserve is to provide funding to meet operation appropriation requirements in the event the City experiences shortfalls in the collection of Wastewater Fund revenues or unanticipated increases in expenditures.

Any transfer of funds from the Wastewater Fund's General Reserve may only be made upon City Council approval of an amendment to the Annual Appropriation Resolution.

Appropriation Transfer Authority
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget.

Transfers between line items in the same program may be made by department heads so long as they do not cross budget categories.

Transfers between programs or categories in the same fund may be made by department heads with City Manager approval.

Transfer between department budgets within the same fund may only be made by the City Council.

Transfers between different funds may only be made by the City Council.

Transfers to or from employee services line items may be made by the City Manager.

Capital Improvement Program
Annually, City staff will propose a Capital Improvement Program covering the subsequent five fiscal years. The plan will recommend specific funding of projects for the next three years and identify projects for further consideration. The Capital Improvement Program will include a listing of projects for further consideration by the City Council. Such projects will be those which are determined to merit further study, but lacking funding sources. Capital improvements will include Facilities and Infrastructure improvements which are valued over $50,000.

Capital Improvement Program projects will be reviewed to determine the best method of financing the project. City Council will determine whether the project is funded on a "pay as you go" basis or a debt instrument. The City will continue imposing development impact fees which ensure that a new development pays its fair share of the increased service capacity.

Funds allocated to capital projects will be encumbered for the life-of-project (across fiscal years) until fully expended or project is finished. Any funds remaining at the end of the project will be unencumbered and returned to origin fund as unassigned balance.

Fiscal Management
It is the City's policy to minimize the subsidization by the general taxpayer of the costs of services provided to the public which are of specific benefit, rather than general benefit. The City Council shall annually consider establishing specific cost-recovery policies related to such costs to be reflected in the Master Fee Schedule.

Consistent with the State Constitution, charges for services will not exceed the cost reasonably borne to deliver those services.

Costs reasonably borne may include direct and in-direct costs, as well as reasonable reserves or amortization of equipment associated with the provision of the services.

The City will annually review the Master Fee Schedule to ensure that each user fee is reflective of its intended cost-recovery percentage and will revise the fees as needed or revise the cost-recovery percentage.

Table of Contents 7.1 Budget Policies

The City will maintain water and sewer rate structures which are adequate to ensure that these enterprise funds remain firmly and separately self-supporting, including the cost of operation, infrastructure maintenance and replacement, indirect cost recovery, and debt service.

Whenever required by bond indentures, the City will determine whether debt service coverage ratios are being met. Whenever coverage ratios are not being met, staff will recommend rate increases or expenditure reductions or some combination of the two, in order to meet coverage ratios.

An independent firm of certified public accountants will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) which will be incorporated into the Comprehensive Annual Financial Report.

Investments
The City will continue to have a written investment policy approved by City Council resolution annually. The policy for investments in priority order are safety, liquidity and yield.

The City Council will receive reports on the cash position and performance of City investments at a minimum of a quarterly basis.

Capital Assets
Future maintenance needs for all new capital facilities will be fully costed out. All equipment and facility maintenance needs for the next five years will be projected and updated annually. All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.

Interfund Advances
A short-term interfund advance is a temporary transfer of cash from one City fund to another and will be repaid within 12 months or the same fiscal year for purposes of cash flow needs. By contrast, a long term interfund advance extends beyond 12 months, and is used for capital projects or some major and unforeseen financial impact. Advances shall not be used to fund operating deficits and should only be considered when exigent circumstances dictate.

All advances require City Council approval via resolution and must be accompanied by a recognized obligation and payment schedule (ROPS). Only the City Council shall have the authority to amend, suspend, or discharge an approved ROPS. Loans cannot be made to or from restricted or legally encumbered funds (e.g., bond proceeds, grant-restricted accounts) without legal authority from City Attorney. Interest shall be charged at a rate equal to the City’s average pooled investment return, unless otherwise specified by law or funding restrictions; alternatively, Local Area Investment Funds (LAIF) rates of return can also be used.

The Administrative Services Department shall record all interfund loan receivables and payables in accordance with GAAP as either assets or liabilities in fund balance sheet to effect transparent recognition of both payable and receivable sources of funds.

Administrative Services shall report outstanding interfund loans in the Annual Comprehensive Financial Report (ACFR).

Table of Contents 7.1 Budget Policies
City of Grover Beach Budget | 2026-27 Page 166
Gann Appropriation Limit
City of Grover Beach Gann Appropriations Limit as defined in Article XIII-B of the California State Constitution. The voters of California, during a special election in 1979, approved Article XIII-B of the California State Constitution. Informally known as the "Gann Initiative," Article XIII-B provides limits regarding the total amount of appropriation in any fiscal year from the proceeds of taxes.

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

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

The table below provides the calculation for the appropriations limit for fiscal year 2025-26, as well as the total appropriations subject to the limit. The adjustment factors utilized for the fiscal year 2025-26 calculation include the growth in Assessed Property Valuation for Grover Beach and the population growth in Grover Beach. These two factors yielded the most favorable appropriations limit for the City. The City's appropriations subject to the limit ($15.9m) are as shown in the calculation below.

A Last Year's Limit $14,760,199 FY 2025-26 Budget
B Adjustment Factors
B1 Population .9965
California Department of
Finance
B2
Change Assessed
Property Value
.0750
San Luis Obispo County
Assessor
C Annual Adjustment $1,103,572 (B1*B2)*A
D FY 2025-26 Limit $15,863,771 A+C
E Tax Proceeds $16,573,560 FY 2026-27 Budget
F Exclusions $1,905,266 FY 2026-27 Budget
G
2025-26 Appropriations
Subject to Limit
$15,067,134 E-F
Amount Under Limit $796,637
Table of Contents 7.2 Gann Limit Calculation

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

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

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

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

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

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

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

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

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

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

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

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

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

Betterments (Special Assessments): Whenever a specific area of a community receives benefit from a public improvement (e.g., water, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental entity for all or part of the costs it incurred. Each parcel receiving benefit from the improvement is assessed for its proportionate share of the cost of such improvements. The proportionate share may be paid in full or the property owner may request that the assessors apportion the betterment over 20 years. Over the life of the betterment, one year’s apportionment along with one year’s committed interest computed from October 1 to October 1 is added to the tax bill until the betterment has been paid.

Bond: A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year. (See Note) Table of Contents 7.3 Glossary
City of Grover Beach Budget | 2026-27 Page 168
Bond and Interest Record: (Bond Register) – The permanent and complete record maintained by a treasurer for each bond issue. It shows the amount of interest and principal coming due each date and all other pertinent information concerning the bond issue.

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

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

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

Budget: A plan for allocating resources to support particular services, purposes and functions over a specified period of time. (See Performance Budget, Program Budget)
Capital Assets: All real and tangible property used in the operation of government, which is not easily converted into cash, and has an initial useful live extending beyond a single financial reporting period. Capital assets include land and land improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements; vehicles, machinery and equipment. Communities typically define capital assets in terms of a minimum useful life and a minimum initial cost. (See Fixed Assets)
Capital Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements.

Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Assets, Fixed Assets) Cash: Currency, coin, checks, postal and express money orders and bankers’ drafts on hand or on deposit with an official or agent designated as custodian of cash and bank deposits.

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

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

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

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

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

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

Table of Contents 7.3 Glossary

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

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

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

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

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

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

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

Estimated Receipts: A term that typically refers to anticipated local revenues often based on the previous year's receipts and represent funding sources necessary to support a community's annual budget. (See Local Receipts) Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is available to particular categories of property or persons upon the timely submission and approval of an application to the assessors.

Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors.

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

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

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

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

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

Table of Contents 7.3 Glossary
City of Grover Beach Budget | 2026-27 Page 170
Fixed Costs: Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service costs or interest on loans.

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

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

Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on identified activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations.

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

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

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

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

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

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

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

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

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

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

Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a specified period of time.

It is always expressed in annual terms.

Table of Contents 7.3 Glossary

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

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

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

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

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

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

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

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

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

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

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

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

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

Program: A combination of activities to accomplish an end.

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

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

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

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

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

Revaluation: The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with constitutional and statutory requirements. The nature and extent of that program Table of Contents 7.3 Glossary
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will depend on the assessors’ analysis and consideration of many factors, including, but not limited to, the status of the existing valuation system, the results of an in-depth sales ratio study, and the accuracy of existing property record information.

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

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

RANs are full faith and credit obligations.

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

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

Sale of Real Estate Fund: A fund established to account for the proceeds of the sale of municipal real estate other than proceeds acquired through tax title foreclosure.

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

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

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

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

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

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

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

Table of Contents 7.3 Glossary