CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 5
Placement: Consent
Meeting Date: June 22, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: Adoption of FY 2026-27 Budget and FY 2026-31 Capital Improvement Program
RECOMMENDATION
Adopt Resolutions for FY 2026-27 budget and FY 2026-31 Capital Improvement Program; appropriate funds for the FY 2026-27 budget; set the FY 2026-27 Appropriations Limit from Tax Proceeds; establish authorized positions list in departments for FY 2026-27; and authorize the amended payment schedule for existing interfund advance between Wastewater and General Funds.
BACKGROUND
On June 8, 2026, staff presented the FY 2026-27 Proposed Budget to the City Council for review and public comment. The total proposed citywide budget for FY 2026-27 is $29.5 million, including $19.4 million in the City’s General Fund, $6.9 million in Enterprise Funds including Water and Wastewater Funds, and $2.1 million in Special Revenue Funds. The five-year CIP includes $1.6 million in funding in FY 2026-27 for key capital projects notwithstanding carryover which increases CIP to $7.4 million.
The Proposed Budget maintains existing services with targeted investments in addressing Council Goals with a focus on the four Multi-Year Goals of Public Safety and Community Services, Economic Development and Housing, Community Infrastructure, and Financial and Organizational Sustainability. The proposed General Fund budget is balanced with a surplus of approximately $3,511 with ending reserves estimated to be approximately 27% of operating expenditures at the end of FY 2026-27 in excess of the Council’s 25% policy.
Staff recommends the Council adopt the related Resolutions to approve the final budget and personnel allocation for FY 2026-27 to begin on July 1, 2026. Staff will also create an adopted budget document which will be provided to the Council Members and posted on the City’s website after the beginning of the new fiscal year. Staff will return to the Council with quarterly financial reports over the next fiscal year including the mid-year budget review and updated five-year financial forecast in early 2027.
Lastly, staff has included the amended payment schedule for approval which will offset charges accrued to General Fund for sewer work undertaken at the same time as the West Grand Avenue Project. Repayment schedule amends existing payments to $202,358 per year to offset the Staff Report: : FY 2026-27 Budget and FY 2026-31 CIP Adoption Page 2 June 22, 2026
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
Adoption of the FY 2026-27 budget appropriates a total of $29.5 million for citywide expenditures based on the estimated funding sources.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt Resolutions to adopt the FY 2026-27 budget and FY 2026-31 Capital Improvement Program; appropriate funds for the FY 2026-27 budget; set the FY 2026- 27 Appropriations Limit from Tax Proceeds; establish authorized positions list in departments for FY 2026-27; and authorize the amended payment schedule for existing interfund advance between Wastewater and General Funds; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
ATTACHMENTS
1. Appropriations Resolution for FY 2026-27
2. Gann Limit Resolution
3. Position Allocation Resolution
4. Interfund Advance Repayment Schedule
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☐ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement ☐ Street Improvements and Maintenance
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, APPROPRIATING THE FY 2026-27 BUDGET
WHEREAS, all requisite public hearings relating to the budget have been duly held, and all necessary findings have been made.
NOW, THERFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, California, does hereby :
PART I
THAT the amounts set forth for the purposes named herein shall, upon the adoption of this Resolution, become the Budget for the City of Grover Beach for FY 2026-27; and
PART II
THAT the general provisions governing this Resolution shall be as follows:
SECTION 1. APPROPRIATION OF THE FY 2026-27 BUDGET. Monies are hereby appropriated from each of the several funds of the City to each department of the City in the amounts set forth herein for employee services, supplies & services, minor capital, special activities, and capital improvements.
SECTION 2. TRANSFERS BETWEEN APPROPRIATIONS AND INCREASE IN APPROPRIATIONS.
a. Consistent with the Financial Policies of the City that are contained in Resolution No. 25-08 of the City Council, any adjustments in the amounts appropriated for the purposes indicated herein at the department/fund level shall be made only upon the motion to amend this Resolution adopted by the affirmative votes of a majority of a quorum of the City Council. Administrative changes within the department/fund level may be made without the approval of the City Council pursuant to Subsection (d) of this Section. b. For accounting and auditing convenience, accounts may be established to receive transfers of appropriations from department appropriations for capital improvements & special activities in two or more different funds for the same project.
c. Department appropriations in Intra-governmental Service Funds (ISF) may be administratively adjusted, provided no amendment to this Resolution would be required to adjust the appropriation in the department receiving the service from the ISF.
d. Any adjustments made pursuant to Subsections (a), (b) or (c) of this Section shall be made consistent with written guidelines established by the City Manager.
Attachment 1
Resolution No. 26- Page 2
SECTION 3. TRANSFER WITHIN AN APPROPRIATION. The funds allocated to the respective accounting object classes comprising the total appropriation for each program or department are for purposes of budgeting consideration and convenience only and are not intended to constitute separate appropriations; provided, however, that funds allocated to an object class may be expended for the purposes of any other object class if such expenditures are within the written guidelines established by the City Manager.
SECTION 4. CONTRADICTORY PROVISIONS OF PREVIOUS RESOLUTIONS. Any other prior Resolution or provision thereof of the City Council respecting the appropriation and administration of the FY 2026-27 Budget which is in contradiction with this Resolution is hereby superseded. Notwithstanding any other provisions of this Resolution, no funds appropriated into the Reserves of the City shall be expended, transferred, obligated, used, encumbered or otherwise disposed of except as specifically authorized by previously approved bonded indebtedness or until the City Council reallocates such appropriations by amending this Resolution as provided in Subsection 2(a) of this Part.
SECTION 5. ADMINISTRATION. The City Manager or his/her designee shall maintain all changes to this Resolution and shall cause to be filed with the City Clerk and the Administrative Services Director a copy of, and subsequent amendments to, this Resolution following its adoption by the City Council.
SECTION 6. CLERICAL CORRECTIONS. The adoption of this Resolution implements the motions and actions of the City Council with respect to the proposed Budget, as amended by those motions and actions, if any, for the direction in drafting this Resolution. By adoption of this Resolution, the City Council hereby directs responsible City staff members to make necessary technical and clerical corrections to this Resolution to implement the intent of the City Council.
Such corrections shall not alter, in any manner, the substance or intent of the City Council’s adoption of this Resolution.
PART III
THAT the following amounts are appropriated to the various departments for the purpose or purposes indicated:
FY 2026-27
FUND 101 - GENERAL FUND
TO: ADMINISTRATIVE SERVICES 693,863
General Accounting, Information Technology
TO: COMMUNITY DEVELOPMENT DEPARTMENT 1,532,469
Building, Code Compliance, Planning
TO: CITY MANAGEMENT DEPARTMENT 1,942,426
Community Services, General Management, Human Resources, Legislative
TO: POLICE DEPARTMENT 7,607,436
Cannabis Regulatory Unit, Investigations, Police Operations, Police Support Services
TO: PUBLIC WORKS 1,699,605
Resolution No. 26- Page 3
City Shop/Corp Yard, Facility Maintenance, Street Maintenance TO: NON-DEPARTMENTAL 5,909,371
SUBTOTAL OPERATING & CAPITAL 19,385,170
TO: NON-DEPARTMENTAL
General Reserve 2,865,838
Emergency Reserve 1,910,559
SUBTOTAL RESERVES 4,776,397
TOTAL GENERAL FUND 24,161,566
FUND 105 - EQUIPMENT REPLACEMENT FUND
TO: ADMINISTRATIVE SERVICES 25,000
Information Technology
TO: POLICE DEPARTMENT 289,928
Police Operations
TO: PUBLIC WORKS 106,545
Facility Maintenance
TOTAL EQUIPMENT REPLACEMENT FUND 421,473
FUND 201 - STREET CONSTRUCTION DESIGNATED FUND (K-14)
TO: CIP 710,000
TO: NON-DEPARTMENTAL 25,000
TO: PUBLIC WORKS 243,465
Street Maintenance
TOTAL STREET CONSTRUCTION DESIGNATED FUND (K-14) 978,465 FUND 205 - GAS TAX FUND
TO: NON-DEPARTMENTAL 50,000
TO: PUBLIC WORKS 305,538
Street Maintenance
TOTAL GAS TAX FUND 355,538
FUND 210 - ROAD MAINTENANCE AND REHABILITATION ACCOUNT
TO: NON-DEPARTMENTAL 358,840
FUND 215 - LOCAL TRANSPORTATION FUND (LTF)
TO: NON-DEPARTMENTAL 200,000
TO: PUBLIC WORKS 84,872
Street Maintenance
TOTAL LOCAL TRANSPORTATION FUND (LTF) 284,872
FUND 230 - PUBLIC SAFETY GRANT FUND
TO: POLICE DEPARTMENT 146,500
Police Operations, Police Support Services
FUND 305 - CAPITAL PROJECTS
Resolution No. 26- Page 4
TO: CIP 658,840
FUND 601 - WATER ENTERPRISE FUND
TO: ADMINISTRATIVE SERVICES 469,833
Utility Billing
TO: PUBLIC WORKS 3,210,387
Water
TO: CIP 20,000
TO: NON-DEPARTMENTAL 990,000
TOTAL WATER FUND 4,690,221
FUND 602 - WATER CONSERVATION FUND
TO: PUBLIC WORKS 6,208
Water Conservation
FUND 602 - WASTEWATER FUND
TO: ADMINISTRATIVE SERVICES 458,374
Utility Billing
TO: PUBLIC WORKS 663,687
Storm Water, Wastewater
TO: CIP 240,000
TO: NON-DEPARTMENTAL 864,822
TOTAL WASTEWATER FUND 2,226,883
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 22nd day of June 2026.
KASSI DEE, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, SETTING THE FY 2026-27 APPROPRIATIONS LIMIT FROM TAX
PROCEEDS
WHEREAS, in accordance with Article XIIIB of the State Constitution, local governments are required to establish certain spending levels that cannot be exceeded; and WHEREAS, cities are required to adopt an annual appropriations limit in conjunction with the adoption of the City’s annual budget; and
WHEREAS, the City of Grover Beach has established in accordance with these requirements its FY 2026-27 appropriations as its base year; and WHEREAS, in accordance with these requirements, cities may annually increase their previous base year appropriations by the per capita income change of their City’s or County’s population increase; and
WHEREAS, the change in assessed value has been 7.5% has been set at 4.44%, and the City of Grover Beach, certified population change has been set -.45%; and WHEREAS, the FY 2025-26 appropriation (spending) limit for Grover Beach was $14,760,199 and, when multiplied by the allowed adjustment factors sets the FY 2026-27 appropriation limit from tax proceeds at $15,863,771 not including exclusions.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby establish $15,863,771 as its FY 2026-27 appropriation limit from tax proceeds.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 22nd day of June 2026.
KASSI DEE, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 2
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA ESTABLISHING THE NUMBER OF AUTHORIZED POSITIONS IN THE VARIOUS DEPARTMENTS OF THE CITY FOR THE FY 2026-27 BUDGET AND ESTABLISH THE 2026-27 SALARY SCHEDULE
WHEREAS, all requisite public hearings relating to the budget have been duly held, and all necessary findings have been made.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL:
PART I
THAT the number of permanent full-time positions in which persons may be employed by the City during FY 2026-27 is hereby establish as set forth in Part IV of this Resolution; and
PART II
THAT a change in the total number of permanent full-time positions authorized in a department in any Section of Part IV or part-time positions authorized in a department in any Section of Part V shall only be accomplished by Resolution of the City Council; and THAT except as provided in Part III Section 3, the number of persons employed in permanent full-time positions shall not exceed the total number of authorized positions in a department in any Section of Part IV; and
PART III
THAT the number of permanent positions allocated by class to department is for budgeting consideration and convenience only, and is not intended to constitute separate authorization of permanent positions by class except as provided below:
SECTION 1. The number of permanent full-time positions allocated to any department may be adjusted, provided that the number of permanent full-time positions authorized in any Section of Part IV is not exceeded and that there are sufficient unspent appropriations available to fund the adjustment.
SECTION 2. The City Manager or his/her designee may, upon the recommendation of the Administrative Services Director, adjust the number of permanent full-time positions allocated by class within any Section of Part IV, provided that the total number of permanent positions authorized in any Section of Part IV does not change and that there are sufficient unspent appropriations as verified by the Administrative Services Department available to fund the adjustment.
SECTION 3. The number of part-time positions allocated to any department may be adjusted, provided that the number of part-time positions or their full-time equivalents (hereinafter “FTE”) authorized in any Section of Part V is not exceeded and that there are sufficient unspent appropriations available to fund the adjustment.
Attachment 3
SECTION 4. The City Manager or his/her designee may, upon the recommendation of the Administrative Services Director, adjust the number of part-time positions allocated by class within any Section of Part V, provided that the total number of part-time positions or their FTE authorized in any Section of Part V does not change and that there are sufficient unspent appropriations as verified by the Administrative Services Department available to fund the adjustment.
SECTION 5. The City Manager may, at his/her discretion, extend for a period of up to two months positions scheduled to be eliminated to ensure a smooth transition due to bumping, demotions, and other personnel adjustments required by attempting to accommodate employees affected by layoffs, provided that funds have been budgeted for the transition period.
SECTION 6. Any adjustment made pursuant to Sections 1 through 5 of Part III shall only be made within the guidelines established by the City Manager.
SECTION 7. By adoption of this Resolution, the City Council hereby directs responsible City staff to make necessary technical and clerical corrections to this Resolution to implement the intent of the City Council. Such corrections shall not alter, in any manner, the substance or intent of the City Council in adopting the Budget Resolution.
PART IV
THAT permanent full-time positions are authorized in the various departments as listed by Section as follows:
Number of
Months Positions
Authorized Authorized
SECTION 1. CITY MANAGEMENT DEPARTMENT Full Year 8
Legislative, General Management,
Human Resources, Community Services
SECTION 2. ADMINISTRATIVE SERVICES DEPARTMENT Full Year 9 General Accounting, Utility Billing, Risk Management
SECTION 3. COMMUNITY DEVELOPMENT DEPARTMENT Full Year 5.25 Planning, Building Inspection
SECTION 5. POLICE DEPARTMENT Full Year 30
Police Support Services, Police Operations
Investigations, Communications & Records
SECTION 4. PUBLIC WORKS AND UTILITIES Full Year 16.75
Facility Maintenance, Street Repair, City Shop/
Corp Yard, Wastewater, Water, Storm Water
TOTAL PERMANENT FULL-TIME POSITIONS 69
Resolution No. 26- Page 3
PART V
THAT part-time positions are authorized in the various departments as listed by Section as follows:
Number of
Months FTEs
Authorized Authorized
SECTION 5. POLICE DEPARTMENT Full Year 1.0
Police Support Services, Police Operations
Investigations, Communications & Records
TOTAL PART-TIME POSITIONS 1.0
NOW, THERFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, California, does hereby :
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 22nd day of June 2026.
KASSI DEE, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Interfund Advance
Enter values 6/18/2026
Loan amount $421,504 Scheduled payment
Annual interest rate 3.00% Scheduled number of payments Loan period in years 2 Actual number of payments
Number of payments per year 1 Total interest
Payment
number
Payment
date
Beginning
balance
Scheduled
payment
Total
payment Principal Interest Ending
balance
Cumulative
interest
1 6/30/2026 $421,504 $220,283 $220,283 $207,637 $12,645 $213,867 $12,645 2 6/30/2027 $213,867 $220,283 $213,867 $207,451 $6,416 $0 $19,061 $220,283
2 $19,061
Attachment 4