On Feb. 13, the Grover Beach City Council received the Mid-Year Financial Review for Fiscal Year (FY) 2023-24, which showed the City’s strong financial position heading into the upcoming budgeting process. The favorable mid-year budget projections and five-year financial forecast will allow the City to address key initiatives that benefit the community.
“Grover Beach remains committed to sound financial management, strict budget oversight and fiscal responsibility year round,” said Grover Beach Mayor Karen Bright. “With strong reserves and a favorable five-year financial forecast, we can continue to build a thriving City while remaining prudent and cost-effective with our budget.”
The Mid-Year Budget Review provides an update on the City’s current financial condition for FY 2023-24. According to the report, City General Fund revenues and expenditures are tracking closely with initial budget projections. Key revenue streams for the fiscal year include sales taxes, property taxes, cannabis taxes, service charges and transient occupancy taxes, with total revenues expected to reach $18.7 million.
As part of the mid-year budget review on Feb. 13, the City Council also approved the allocation of surplus funds to address community needs. These include investments in dispatch software to support the future transfer of dispatch services to the San Luis Obispo Sheriff’s Office, police vehicle computers, maintenance of storm drain inlets/outlets and improvements to the Community Center. Despite these expenditures, the City is projected to end this fiscal year with a modest General Fund surplus and reserves totaling $6.18 million, equivalent to 38% of operating expenditures.
Separate from the General Fund, the City’s water and wastewater funds are projected to end this fiscal year in a deficit, necessitating the use of reserves. In December 2023, the City Council approved a new five-year water and wastewater rate structure, which went into effect on Feb. 1. Those updated rates will provide additional revenue to balance the water and wastewater budgets, funding vital capital improvement projects — including projects necessary to maintain existing water and sewer infrastructure — as well as maintenance expenses and operations costs.
In addition to reviewing the Mid-Year Budget Report, the Council also received an update on the City’s five-year General Fund financial forecast. This forecast serves as a valuable tool to help Council and staff make prudent financial decisions and inform future City budgets. Despite significant needs for future services and capital improvements, the forecast indicates that the City’s General Fund is in a positive position over the five-year period. The City forecasts moderate revenue growth and has taken steps to maintain healthy reserves considering the ongoing uncertainties in the national economic picture.
“Grover Beach is in a strong financial position today thanks to our Council’s careful planning and forward-looking leadership,” said Grover Beach City Manager Matthew Bronson. “As we assess the mid-year budget and look ahead, we remain steadfast in our commitment to sustaining the City’s positive momentum, ensuring lasting stability and fostering growth for our City.”
The Mid-Year Budget review and five-year financial forecast will inform the upcoming FY 2024-25 Council goal-setting workshop on March 3, and subsequent review and adoption of a budget that reflects these goals. Keep an eye on the City’s social media channels for future budget updates on Facebook, Instagram, Twitter and Nextdoor.