City of Grover Beach logoAt its June 10 meeting, the Grover Beach City Council reviewed and approved the Proposed Fiscal Year (FY) 2024-25 Proposed Budget and FY 2024-29 Capital Improvement Program (CIP).

“As we review this year’s proposed budget, the Council remains committed to prudent financial stewardship, aligning our investments with the needs and aspirations of our community. Together, we are shaping a resilient future for Grover Beach,” said Grover Beach Mayor Karen Bright.

The City’s $35.2 million budget for FY 2024-25 balances revenues with expenditures while maintaining strong reserves. It leverages $18.4 million from the General Fund, $6.7 million from Enterprise Funds (including Water and Wastewater funds) and $1.5 million from Special Revenue Funds. Additionally, the five-year CIP allocates $6.7 million for key capital projects in the upcoming year.

The City’s five primary revenue sources include sales tax, property tax, cannabis tax, transient occupancy tax and franchise fee revenue. The tax revenues align with Grover Beach’s five-year financial projections shared in February 2024. As this is the second year of a two-year budget cycle, the General Fund operating budget remains largely unchanged from the FY 2023-25 budget prepared last year.

Despite inflation and high interest rates, Grover Beach is in a strong financial position, allowing for continued investments in community needs identified in the Council Goals for FY 2024-25, with a focus on four Major City Goals: Economic Development and Community Promotion, Housing and Homelessness, Public Safety and Street Maintenance and Complete Streets.

In the approved budget, the City has identified key investments to address community needs and enhance services, including:

  • Launch of a “Buy Local” program to support businesses affected by the West Grand Avenue Streetscape 4th-8th Street Project construction. This initiative, administered in partnership with the South County Chambers of Commerce, will offer $25 gift cards for every $100 spent at participating local establishments along West Grand Avenue while supplies last. The program is anticipated to begin June 25.

  • Measure K-14 investments of $860,000 to improve residential streets and a budget allocation of $7 million (including $3.4 million in grants) to complete the West Grand Avenue Streetscape 4th-8th Project

  • A $600,000 General Fund contribution to the CIP to fund improvements to the City’s Corporation Yard and $250,000 to the City’s Equipment Replacement Fund to fund replacement of aging equipment

  • Continued partnerships with housing and homeless services agencies like 5Cities Homeless Coalition, Peoples Self-Help Housing and the County of San Luis Obispo to increase the supply of affordable housing and address homelessness in South County

Grover Beach remains committed to addressing current community needs while ensuring responsible financial management. This involves the careful allocation of resources to benefit residents and businesses, balancing immediate needs with long-term sustainability goals.

“Through this proposed budget, we are fortifying Grover Beach’s foundation for growth and resilience,” said Grover Beach City Manager Matthew Bronson. “City budgets are a reflection of community priorities, and this budget allocates resources in a financially responsible way to carry out the priorities set by the Council to serve the community.”

The final adoption of the FY 2024-25 Budget is scheduled for the City Council’s June 24 meeting.