HomeMy WebLinkAboutCC 2025-05-27_11a Preliminary FY 25-27 Biennial Operating Budget ReviewItem 11.a.
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Public Works Director
BY: Nicole Valentine, Director of Administrative Services
SUBJECT: Review Preliminary FY 2025-27 Biennial Operating Budget
DATE: May 27, 2025
RECOMMENDATION:
Review the preliminary budget, receive a presentation from staff, and provide feedback
to staff in preparation for the public hearing scheduled for June 10, 2025, to consider the
Fiscal Year (FY) 2025-27 Biennial Budget.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposed FY 2025-27 Biennial Budget recommends approximately $55.7 million in
FY 2025-26 expenditures and $55.4 million in FY 2026-27 expenditures, including
operating costs such as salaries, benefits, services, supplies, maintenance, debt service,
and capital-related costs.
The proposed FY 2025-27 Biennial Budget General Fund budget utilizes excess fund
balance reserves to pay for a combination of one-time and ongoing expenditures that will
exceed expected revenues in order to address several goals. However, as presented,
fund balance reserves are expected to remain at 15.2%, above the fund balance minimum
target of 15%.
BACKGROUND:
Every two years, staff and Council prepare a Biennial Budget document, which commits
government resources and services to accomplish the City’s mission of making Arroyo
Grande the best place possible for everyone who lives, works, and visits here. Work is
now underway to finalize the upcoming biennial budget for Fiscal Years 202 5-27. The
anticipated 5-step process and timeline for this budget cycle are depicted in Figure 1
below:
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Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 2
Figure 1: Overview of Biennial Budget Process
On January 28, 20251, Council received an update on the General Fund Five -Year
Financial Forecast. The City’s Forecast is a long-range fiscal planning tool that has served
as the framework for the development of the FY 202 5-27 General Fund Biennial Budget.
On December 9, 2024, an Arroyo Grande Community Priorities Survey was published.
This 4-question online survey was posted on the City website and promoted on social
media channels. The survey was open for one month and closed on January 15, 2025.
The survey allowed community members to provide input regarding their thoughts on
what the top priorities should be for the City over the next 2-3 years. The survey included
a combination of multiple-choice and short-response questions. A summary of the
responses was presented at the February 10, 20252, Special Council Meeting Staff
Report.
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Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 3
On February 10, 2025, the City Council held a Goal Setting Workshop focused on
priorities for the FY 2025-27 Budget. The Results of this Goal Setting Workshop were
provided to City Council on March 11, 20253. The City Council established five (5) major
City goals for staff to prioritize for the upcoming biennial budget cycle. The goals were
established considering the results of the community survey and input from the public and
staff. This set of priorities has been used by staff to create work plans and a proposed
biennial budget. The five major goals are identified in Figure 2 below.
Figure 2: City Council Goals for FY 2025-27 Biennial Budget
On May 13, 20254, the City Council provided direction on the 10-year Capital
Improvement Program (CIP) budget, Measure E-24 Local Sales Tax Fund Expenditure
Program, and Measure O-06 Local Sales Tax Fund Expenditure Program. The
prioritization and direction provided by the City Council at these previous meetings have
been incorporated into the FY 2025-27 Biennial Budget. The FY 2025-27 Biennial Budget
was also developed with input from all City departments in a collaborative effort to provide
staff’s best professional judgment regarding current and future needs of the City.
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Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 4
This report addresses expenditure budget recommendations for all City departments and
all operating funds. As presented, the budget will provide funding for all City services
performed during the next two fiscal years. Each fund summary is provided as Attachment
1.
ANALYSIS OF ISSUES:
General Fund Overview
On April 18, 20255, the City Council reviewed the Annual Comprehensive Financial
Report (ACFR) summarizing the Fund Balance at the end of F Y 2023-24. The General
Fund Balance can be reviewed in Table 1:
Table 1: Beginning and Ending Balance as of June 30, 2024
As shown in Table 2, the General Fund expenditures are expected to outpace revenues
in FY 2024-25 by $3.9 million, the year will end with a healthy projected fund balance of
$7.5 million (see “2024-25 Estimated Actual” column). This equates to 28.3% of
appropriations, which is higher than the City Council fund balance goal of 20% with a
minimum of 15%. This projected fund balance is the beginning fund balance for FY 2025-
26 and will continue to carry forward into FY 2026-27.
With this FY 2025-27 Biennial Budget, if operations continue consistently as in FY 2024-
25, the expenditures will outpace revenues. Even with the proposed expenditures, FY
2026-27 is projected to end with a fund balance of $4.2 million, representing 16.2% of
total operating expenditures in the General Fund. This will be $978,000 below the reserve
policy goal of 20% but within the reserve policy minimum of 15%, as shown in Table 2.
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General Fund
Measure O-2006
Local Sales Tax Fund OPEB Total
Beginning Fund Balance 7/1/23 11,862,259$ 7,625,337$ 1,134,004$ 20,621,600$
Revenues 22,677,374 3,545,223 154,898 26,377,496
Expenditures (23,045,487) (6,152,688) - (29,198,175)
Net Change in Fund Balance (368,112)$ (2,607,466)$ 154,898$ (2,820,680)$
Fund Balance:
Nonspendable 804,261$ -$ -$ 804,261$
Assigned for capital projects - 3,522,243 - 3,522,243
Assigned for post employment benefits - - 1,288,901 1,288,901
Unassigned 10,689,886 1,495,629 - 12,185,514
Ending Fund Balance, 6/30/24 11,494,147$ 5,017,872$ 1,288,901$ 17,800,920$
Page 196 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 5
Table 2: Scenario A – Status Quo General Fund Budget &
Available Fund Balance in thousands
The tables in the following pages identify specific budget request items in the FY 202 5-
27 Biennial Budget in the areas of staffing, services and supplies, and vehicles and
equipment.
Proposed Staffing Requests
The preliminary budget includes a proposal to reclassify the Records Clerk/Property &
Evidence Clerk to a Supervisor within the Police Department. This reclassification will
provide an additional level of supervision for the non-sworn police personnel. The
Supervisor would oversee the Police Cadet, Police Service Technician (PST), and
Records Clerk.
Two reclassifications are proposed within the Engineering division. The first would be to
reclassify the Engineering Inspector to Assistant Engineer. There is no budget impact to
this shift as the positions are in the same salary range . The Engineering Inspector can
provide Inspections and other tasks, but not all of the Assistant Engineer's duties.
However, the Assistant Engineer position can complete Engineering Inspections. The
second reclassification would be to reclassify the unfilled Assistant Project Manager to an
Engineering Technician position. This would streamline the Engineering Division ’s
succession planning, add engineering capacity, and help deliver the large scale of Capital
Improvement Projects that were adopted in the 10-Year CIP Budget.
2025-26 2026-27
2023-24 ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance $11,861 $11,494 $11,494 $11,494 $7,462 $5,774
Revenues 19,922 19,226 19,136 19,541 20,265 21,140
Transfers In 2,755 2,796 2,796 3,082 2,940 2,987
Total Revenues 22,677 22,022 21,932 22,623 23,205 24,127
Salaries and Benefits 12,790 13,539 13,612 13,808 14,294 14,882
Services and Supplies 8,992 9,772 9,947 9,687 10,177 10,439
Debt Service 310 294 294 302 294 283
Capital Outlay 135 130 270 383 13 13
Transfers Out 817 2,475 2,475 2,475 115 115
Total Expenditures 23,044 26,210 26,598 26,655 24,893 25,732
Revenue minus Expenditures (367) (4,188) (4,666) (4,032) (1,688) (1,605)
Available Fund Balance $11,494 $7,306 $6,828 $7,462 $5,774 $4,169
Reserve %49.9%27.9%25.7%28.0%23.2%16.2%
$ Above Reserve Policy $6,885 $2,065 $1,509 $2,130 $793 ($978)
2024-25
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Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 6
The need for a stand-alone Assistant City Manager (ACM) and Economic Development
Coordinator (EDC) positions was identified in the May 13, 20256, City Council
presentation of the Operational and Organizational Assessment. Based on this
Assessment, and to address the Council’s goal to Pursue New Revenue Sources, s taff
recommended to incorporate the EDC on October 1, 2025, and the Assistant City
Manager on January 1, 2027. Table 3 is a summary table reflecting the proposed staffing
change impacts in each fiscal year.
Table 3: Proposed Staffing Requests
Proposed Services and Supplies Request
The preliminary budget includes six Services and Supplies change requests. The Nexus
Cloud Subscription for Body Worn Cameras will upgrade and replace the existing in-car
camera system, body worn cameras, and support redaction of videos. This software will
also provide time savings for police and records staff, greater security when storing video
evidence, and has larger storage capacity.
The Laserfiche Cloud upgrade and addition of staff licenses will shift the City’s current
repository file software to the cloud and provide an increase in accessibility of data files
to the public with the weblink public portal once fully operational. The additional licenses
will provide more staff members with the ability to access the system’s data.
The implementation of a Public Records Request Software solution will provide a
comprehensive, user-friendly management system to streamline the process of
submitting, processing, and responding to public records requests. The system will
provide both the public and the City with a secure, efficient, and transparent way to handle
requests for public records to meet all compliance requirements.
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Salaries & Benefits FY 2025-26 FY 2026-27
Reclass Records Clerk/Property & Evidence
Clerk to Supervisor 30,100 31,200
Reclass Engineering Inspector to Assistant
Engineer position - -
Reclass Assistant Project Manager to
Engineering Tech (32,200) (33,300)
Create Economic Development Coordinator
Position Q2 FY 2025-26 (October 1, 2025)82,875 114,400
Add Assistant City Manager Q3 FY 2026-27
(January 1, 2027)- 135,900
Total 80,775 248,200
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Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 7
The Lobbying Services request is to obtain a lobbying firm to provide California advocacy,
federal advocacy, and grant writing services to the City, or a combination thereof. State
legislation greatly impacts the priorities of the City, advocacy and lobbying services can
help influence which policies are implemented at the State level that , in return, greatly
impact the City.
The Classification and Compensation request to hire a consultant to conduct a study
every 3 years enables the City to adjust salaries and stay competitive wit hin the local job
market and address compaction or internal equity issues . This aligns with the City’s
initiative to attract and retain quality employees and is in line with the industry’s best
practices.
The Housing Element Update is a required element by the State of California for the City’s
General Plan and is a critical tool for local governments to plan for housing needs. It must
be updated every eight years, and the current adopted Housing Element for 2020-2028
will need to be updated by 2028. A budget for this project would typically include costs for
planning, outreach, data collection, analysis, and document preparation , with help from a
consultant. Because the project must be adopted in 2028, staff anticipates the work
beginning in FY 2026-27. Table 4 is a summary table reflecting the proposed service and
supplies change impacts in each FY.
Table 4: Proposed Services and Supplies Requests
Vehicle Replacement Requests
As detailed in Table 5, the proposed budget includes a request for $578,500 in vehicles
and equipment spread over the two years. It is important to note that all vehicles due for
replacement are evaluated to determine the status of their operating condition and
whether or not their replacement can be delayed.
Services & Supplies Ongoing One-time FY 2025-26 FY 2026-27
Nexus Cloud Subscription for Body
Worn Cameras X 39,200 34,300
Laserfiche Cloud & Additional
Licenses X 9,800 29,200
Implementation of a Public Records
Request Software Solution X 12,000 12,000
Lobbying Services X - 65,000
Classification and Compensation
Study X 50,000 -
Housing Element Update X - 30,000
Total 111,000 170,500
Page 199 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 8
Table 5: Proposed Vehicle Replacement Requests
When requests listed in Tables 3, 4, and 5 are incorporated into the FY 2025-27 Biennial
Budget, the impact at the end of FY 2026-27 is projected with a fund balance of $3.6
million, which represents 13.7% of total operating expenditures in the General Fund. This
will be $1,639,000 below the reserve policy goal of 20% and the reserve policy minimum
of 15%, as shown in Table 6.
Table 6: Scenario B – General Fund Budget &
Available Fund Balance in thousands
with Service Level Requests incorporated
On May 13, 20257, during consideration of the Operational and Organizational
Assessment, the City Council provided direction to present two Scenarios that adjusted
the Proposed Staffing Requests shown in Table 3 related to the position start of the EDC
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Fund Type Lease/Buy Year Cost
Measure O-06 Local
Sales Tax Fund
Excavator with Masticator to provide
Hazardous Fuel Reduction Buy FY 2025-26 145,000
Water - Replacement Pickup with Service Body Buy FY 2025-26 60,000
Water - Replacement Diesel Utility Truck Buy FY 2026-27 160,000
Sewer - Replacement Vactor Truck Lease FY 2026-27 175,000
General Fund - Police Motorcycles (2) Lease FY 2026-27 38,500
Total Vehicle Cost for 2-year Biennial Budget 578,500
2025-26 2026-27
2023-24 ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance $11,861 $11,494 $11,494 $11,494 $7,462 $5,622
Revenues 19,922 19,226 19,136 19,541 20,305 21,180
Transfers In 2,755 2,796 2,796 3,082 2,940 2,987
Total Revenues 22,677 22,022 21,932 22,623 23,245 24,167
Salaries and Benefits 12,790 13,539 13,612 13,808 14,377 15,132
Services and Supplies 8,992 9,772 9,947 9,687 10,286 10,607
Debt Service 310 294 294 302 294 283
Capital Outlay 135 130 270 383 13 52
Transfers Out 817 2,475 2,475 2,475 115 115
Total Expenditures 23,044 26,210 26,598 26,655 25,085 26,189
Revenue minus Expenditures (367) (4,188) (4,666) (4,032) (1,840) (2,022)
Available Fund Balance $11,494 $7,306 $6,828 $7,462 $5,622 $3,600
Reserve %49.9%27.9%25.7%28.0%22.4%13.7%
$ Above Reserve Policy $6,885 $2,065 $1,509 $2,130 $603 ($1,639)
2024-25
Page 200 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 9
and ACM. Table 7 will provide an overview of the General Fund Budget & Available Fund
Balance with the ACM starting on July 1, 2025, and the EDC starting on January 1, 2027.
Table 7: Scenario C – General Fund Budget &
Available Fund Balance in thousands
with Service Level Requests incorporated
ACM 7/1/2025 EDC 1/1/2027
Table 8 will provide an overview of the General Fund Budget & Available Fund Balance
with the ACM starting on July 1, 2025, and the EDC starting on October 1, 2025.
2025-26 2026-27
2023-24 ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance $11,861 $11,494 $11,494 $11,494 $7,462 $5,510
Revenues 19,922 19,226 19,136 19,541 20,305 21,180
Transfers In 2,755 2,796 2,796 3,082 2,940 2,987
Total Revenues 22,677 22,022 21,932 22,623 23,245 24,167
Salaries and Benefits 12,790 13,539 13,612 13,808 14,489 15,209
Services and Supplies 8,992 9,772 9,947 9,687 10,286 10,607
Debt Service 310 294 294 302 294 283
Capital Outlay 135 130 270 383 13 52
Transfers Out 817 2,475 2,475 2,475 115 115
Total Expenditures 23,044 26,210 26,598 26,655 25,197 26,266
Revenue minus Expenditures (367) (4,188) (4,666) (4,032) (1,952) (2,099)
Available Fund Balance $11,494 $7,306 $6,828 $7,462 $5,510 $3,411
Reserve %49.9%27.9%25.7%28.0%21.9%13.0%
$ Above Reserve Policy $6,885 $2,065 $1,509 $2,130 $469 ($1,843)
2024-25
Page 201 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 10
Table 8: Scenario D – General Fund Budget &
Available Fund Balance in thousands
with Service Level Requests incorporated
ACM 7/1/2025 EDC 10/1/2025
Additionally, staff put together a fifth scenario that incorporates the Proposed Services
and Supplies Requests shown in Table 4 and Proposed Vehicle Replacement Requests
shown in Table 5, without the EDC and ACM.
2025-26 2026-27
2023-24 ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance $11,861 $11,494 $11,494 $11,494 $7,462 $5,427
Revenues 19,922 19,226 19,136 19,541 20,305 21,180
Transfers In 2,755 2,796 2,796 3,082 2,940 2,987
Total Revenues 22,677 22,022 21,932 22,623 23,245 24,167
Salaries and Benefits 12,790 13,539 13,612 13,808 14,572 15,266
Services and Supplies 8,992 9,772 9,947 9,687 10,286 10,607
Debt Service 310 294 294 302 294 283
Capital Outlay 135 130 270 383 13 52
Transfers Out 817 2,475 2,475 2,475 115 115
Total Expenditures 23,044 26,210 26,598 26,655 25,280 26,323
Revenue minus Expenditures (367) (4,188) (4,666) (4,032) (2,035) (2,156)
Available Fund Balance $11,494 $7,306 $6,828 $7,462 $5,427 $3,271
Reserve %49.9%27.9%25.7%28.0%21.5%12.4%
$ Above Reserve Policy $6,885 $2,065 $1,509 $2,130 $369 ($1,994)
2024-25
Page 202 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 11
Table 9: Scenario E – General Fund Budget &
Available Fund Balance in thousands
with Service Level Requests incorporated
without ACM and EDC
To summarize the five scenarios, Table 10 presents each scenario and each
corresponding fund balance by fiscal year.
Table 10: General Fund Budget Scenario Options &
Available Fund Balance in Percent
2025-26 2026-27
2023-24 ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance $11,861 $11,494 $11,494 $11,494 $7,462 $5,705
Revenues 19,922 19,226 19,136 19,541 20,305 21,180
Transfers In 2,755 2,796 2,796 3,082 2,940 2,987
Total Revenues 22,677 22,022 21,932 22,623 23,245 24,167
Salaries and Benefits 12,790 13,539 13,612 13,808 14,294 14,882
Services and Supplies 8,992 9,772 9,947 9,687 10,286 10,607
Debt Service 310 294 294 302 294 283
Capital Outlay 135 130 270 383 13 52
Transfers Out 817 2,475 2,475 2,475 115 115
Total Expenditures 23,044 26,210 26,598 26,655 25,002 25,939
Revenue minus Expenditures (367) (4,188) (4,666) (4,032) (1,757) (1,772)
Available Fund Balance $11,494 $7,306 $6,828 $7,462 $5,705 $3,933
Reserve %49.9%27.9%25.7%28.0%22.8%15.2%
$ Above Reserve Policy $6,885 $2,065 $1,509 $2,130 $703 ($1,255)
2024-25
Scenarios FY 2025-26 FY 2026-27
Scenario A – Status Quo 23.2%16.2%
Scenario B – with Service Level
Requests 22.4%13.7%
Scenario C – with SLR Table 4 & 5
ACM 7/1/2025 EDC 1/1/2027 21.9%13.0%
Scenario D – with SLR Table 4 & 5
ACM 7/1/2025 EDC 10/1/2025 21.5%12.4%
Scenario E – with SLR Table 4 & 5
without ACM and EDC 22.8%15.2%
Fund Balance
Page 203 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 12
After viewing all this information, staff recommends Scenario E to stay within the reserve
policy goal of 20% and the reserve policy minimum of 15%. Scenario E will be used for
the remainder of this report.
Local Sales Tax Fund
The General Fund is the primary operating fund of the City, which accounts for resources
and services traditionally associated with government. The General Fund provides
administrative, financial, police protection, community development, public works, fire,
and recreation services to the community and other funds. The General Fund accounts
for revenues that have unrestricted uses and are not required legally or by contractual
agreement to be accounted for in another fund.
The City has historically reported on the General Fund separately from the Local Sales
Tax Fund, although the City’s auditors traditionally combine this information in the ACFR
as shown above in Table 1. The City now has two Local Sales Tax Fund accounts for
Measure O-06 and Measure E-24.
The Measure O-06 Fund is from revenue received through a 1/2% sales tax approved by
the City's voters in November 2006. Measure O-06 included advisory measures when
passed, providing guidance on the uses to which the funding should be allocated. To
ensure accountability, the measure included a provision requiring the City to publish and
distribute an annual report to each household on the revenues and expenditures from the
sales tax proceeds. To aid in the collection and reporting of this information, the City has
accounted for this fund in a separate account.
The Measure E-24 Fund is from revenue received through a 1% sales tax approved by
the City's voters in November 2024. Measure E-24 is intended fund city services, such as
fixing potholes, maintaining city streets, sidewalks, parks, aging infrastructure, and
community facilities; providing local fire protection, police, and 9-1-1 emergency services;
cleaning up litter/graffiti, and addressing homelessness. To aid in the collection and
reporting of this information, the City has accounted for this fund in a separate account.
For the purpose of providing the City Council and the community the full picture of the
City revenues, expenditures, and ending fund balance, staff has combined these t hree
funds for information purposes into a Consolidated General Fund in this report as shown
in Table 11.
Page 204 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 13
Table 11: FY 2025-27 Consolidated General Fund Budget & Available Fund
Balance in thousands
The projected fund balance for the Consolidated General Fund at the end of FY 202 6-27
is $7,115,314 or 20.2%.
Proposed Budget
The FY 2025-26 and FY 2026-27 proposed budgets present a balanced budget, with
excess revenues and fund balance sufficient to cover recommended work plan and
capital project budget expenditures. The FY 2025-24 proposed budget includes a total of
$32.1 million in revenues and $35.6 million in operating and capital budget for a net of
$3.5 million more expenditures than revenues. The operating budget is balanced, with a
$2 million net operating surplus. Fund balances accumulated over time offset the
additional expenditures.
The FY 2026-27 proposed budget includes a total of $33.2 million in revenues and $35.3
million in operating and capital expenditures for a net of $2 million more expenditures
than revenues. The operating budget is balanced, with a $65,000 net operating surplus.
Consolidated General Fund Revenues
As shown in Chart 1, Sales and Property Taxes comprise the largest source of revenue
in the General Fund, together accounting for approximately 73% of revenue in that fund.
Given this dependence on just two revenue sources, fluctuations in the amount of taxes
received can have profound impacts on the City’s ability to provide services. Fortunately,
as long as the real estate market stays reasonably strong, property taxes are a relatively
stable revenue source.
General General
Fund Fund
Beginning Fund Balance $7,462 $3,754 $1,440 $12,655 $5,705 $2,130 $1,324 $9,158
Revenues:
Revenues 20,305 2,943 5,870 29,118 21,180 3,020 6,025 30,225
Transfers In 2,940 - - 2,940 2,987 - - 2,987
Total Revenues 23,245 2,943 5,870 32,058 24,167 3,020 6,025 33,212
Expenditures:
Salaries and Benefits 14,294 - - 14,294 14,882 - - 14,882
Services and Supplies 10,286 1,265 33 11,584 10,607 1,151 33 11,791
Debt Service 294 - - 294 283 - - 283
Capital Outlay 13 - - 13 52 - - 52
Transfers Out 115 3,302 5,953 9,370 115 2,286 5,846 8,247
Total Expenditures 25,002 4,567 5,986 35,555 25,939 3,437 5,879 35,255
Total Operating Incr/(Decr)(1,757) (1,624) (116) (3,497) (1,772) (417) 146 (2,043)
Available Fund Balance $5,705 $2,130 $1,324 $9,158 $3,933 $1,713 $1,470 $7,115
Reserve %22.8%46.6%22.1%25.8%15.2%49.8%25.0%20.2%
$ Above Reserve Policy 703 1,216 128 2,047 (1,255) 1,025 295 65
Funds Available to Allocate 703 1,216 128 2,047 (1,255) 1,025 295 65
FY 2025-26 FY 2026-27
Measure
O-06
Consolidated
Total
Measure
O-06
Consolidated
Total
Measure
E-24
Measure
E-24
Page 205 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 14
Chart 1: FY 2025-26 Consolidated General Fund Revenues - $32 million
Overall, General Fund tax revenues have been trending upward over the past several
years and are expected to increase in both years of the Biennial Budget. Based on the
latest information provided by the County Auditor-Controller’s Office, property taxes are
expected to increase by 4.25% in both fiscal years. This is the result of an increase in the
assessed valuation of properties in Arroyo Grande and a housing market that has
remained robust throughout the past year.
Sales tax receipts have remained consistent throughout the past year. As discussed
during the Fiscal Outlook presentation in January, the City’s sales tax consultant
projected a reduction in sales tax revenues of 0.4% in FY 2024-25 due to an anticipated
minor economic slowdown. These projections reflect expected declines in categories like
automobiles and transportation, building and construction, and food & drug consumer
goods. The lower projections in these categories are the result of lower expected
consumer demand in the short term. This budget is projecting an increase in sales tax
revenues of 1% in FY 2025-26 and 2.6% in FY 2026-27, as the economy is only
anticipating a minor slowdown.
Page 206 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 15
Chart 2: Consolidated General Fund Tax Revenues $32 million
Consolidated General Fund Expenditures
The following two charts show the proposed $35.6 million Consolidated General Fund
expenditure budget for FY 2025-26, both in terms of the relative size of each department
as well as the total dollars budgeted for each department. As the charts show, the Capital
Improvement Program is the City’s largest function, with 25% of the budget. The Police
Department represents 22% of the General Fund budget. Fire services for FCFA will
receive 12% of the Consolidated General Fund and Measure O-06 budget. Public Works
receives 10% and Community Development will receive 6% of FY 2025-26 budget
resources, respectively. The “Non-Departmental” category represents 9% of the General
Fund budget and includes items that affect all departments, such as the annual payment
on the City’s Unfunded Actuarial Liability (UAL), property and general liability insurance,
and transfers to the Street fund.
Page 207 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 16
Chart 3: FY 2025-26 Consolidated General Fund Expenditures by Department
$35.6 million
Chart 4: FY 2025-26 Consolidated General Fund Expenditures by Department
$35.6 million
Enterprise Funds
Though the focus of this report has been on the City’s General Fund, it is important to
point out that the City’s two enterprise fund programs, Water and Wastewater, reflect rate
adjustments approved by the City Council on March 8, 2022, based on the Water and
Wastewater Rate Study. Table 12 details a consolidated look at these enterprise funds.
It should be noted that the continued cost of Lopez Lake litigation will need to be
addressed in a rate increase that staff is continuing to review.
Page 208 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 17
Table 12: Consolidated Enterprise Funds
Special Revenue Funds
Special Revenue Funds are a governmental fund type used to account for specific
revenues that are legally restricted to expenditures for particular purposes. The FY 202 5-
27 Biennial Budget proposes changes to 5 of the 22 Special Revenue Funds. Only the
Special Revenue Funds with changes will be highlighted in this section.
Fund 212 Police Facilities Fund
The Fund 212 Police Facilities Fund includes impact fees collected from developers for
the expansion of the existing police facility in order to serve future development. The
anticipated revenues remained consistent compared to the current budget. The
expenditure budget increased by $25,000, is related to the Capital Improvement Project
in FY 2026-27 to upgrade the Report Management System to coincide with the San Luis
Obispo Sherriff’s Department upgrade. The anticipated fund balance at the end of FY
2026-27 is $54,923 as shown in Table 13.
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 7,483$ 8,262$ 7,541$ 6,700$ 6,100$
Revenues:
Revenues 9,080 9,872 9,872 10,562 10,873
Transfers In 4,803 3,890 5,243 5,684 4,082
Total Revenues 13,883 13,762 15,115 16,247 14,955
Expenditures:
Salaries and Benefits 1,102 1,279 1,279 1,364 1,419
Services and Supplies 4,854 5,733 6,405 6,536 5,094
Debt Service 55 - - - -
Capital Outlay 39 48 48 129 381
Capital Improvement Program 1,423 530 530 800 1,217
Transfers Out 6,353 6,342 7,695 8,018 8,364
Total Expenditures 13,826 13,931 15,956 16,846 16,475
Total Operating Incr/(Decr)57 (169) (841) (600) (1,520)
Available Fund Balance 7,541$ 8,093$ 6,700$ 6,100 4,580
2024-25
Page 209 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 18
Table 13: Police Facilities Fund
Fund 213 Park Facilities Fund
The Fund 213 Park Facilities Fund accounts for the receipts of park-in-lieu (Quimby) fees
and grant revenues that are used for construction, park acquisition, and development of
park facilities. The anticipated revenues remained consistent compared to the current
budget. The expenditure budget increased by $310,000, is related to the Capital
Improvement project in FY 2026-27 to pay for a portion of the upgrade ADA Bathrooms
at Elm Street Park totaling $175,000, and for a portion of the Design phase of the Short
Street Plaza totaling $135,000. The anticipated fund balance at the end of FY 2026-27 is
$1.3 million as shown in Table 14.
Table 14: Park Facilities Fund
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 58,518$ 63,818$ 64,023$ 69,323$ 74,623$
Revenues:
Revenues 5,504 5,300 5,300 5,300 5,300
Transfers In - - - -
Total Revenues 5,504 5,300 5,300 5,300 5,300
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 25,000
Total Expenditures - - - - 25,000
Change in Fund Balance 5,504 5,300 5,300 5,300 (19,700)
Ending Fund Balance 64,023$ 69,118$ 69,323$ 74,623$ 54,923$
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 1,430,686$ 1,486,686$ 1,490,533$ 1,546,533$ 1,602,533$
Revenues:
Revenues 59,846 56,000 56,000 56,000 56,000
Transfers In - - -
Total Revenues 59,846 56,000 56,000 56,000 56,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 310,000
Total Expenditures - - - - 310,000
Change in Fund Balance 59,846 56,000 56,000 56,000 (254,000)
Ending Fund Balance 1,490,533$ 1,542,686$ 1,546,533$ 1,602,533$ 1,348,533$
2024-25
Page 210 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 19
Fund 224 Transportation Facilities Fund
The Fund 224 Transportation Facilities Fund includes impact fees collected from
developers paid to protect the public health, safety, and welfare by maintaining the
existing level of public services for existing and future residents within the City of Arroyo
Grande. The anticipated revenues remained consistent compared to the current budget.
The expenditure budget increased by $1,238,500, is related to the Capital Improvement
project in FY 2026-27 to pay for a portion of the Halcyon Road Complete Streets project
totaling $788,500, the Design phase of the Huasna Roundabout totaling $400,000, and
upgraded software for Camera Traffic Counts totaling $50,000 . The anticipated fund
balance at the end of FY 2026-27 is $1.7 million as shown in Table 15.
Table 15: Transportation Facilities Fund
Fund 231 Drainage Facilities Fund
The Fund 231 Drainage Facilities Fund includes impact fees collected from developers
paid to improve drainage within the City. The anticipated revenues have increased since
the new Development Impact Fees went into place but are anticipated to remained
consistent during the two year budget cycle. The expenditure budget increased by
$12,500, is related to the Capital Improvement project in FY 2026-27 to pay for a portion
of the Corrugated Megal Pipe Investigation and Repair totaling $10,000 and a portion of
the Trash Amendments Compliance project totaling $2,500. The anticipated fund balance
at the end of FY 2026-27 is $1,465 as shown in Table 16.
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 2,682,500$ 2,742,500$ 2,835,751$ 2,895,751$ 2,955,751$
Revenues:
Revenues 153,251 60,000 60,000 60,000 60,000
Transfers In - - - - -
Total Revenues 153,251 60,000 60,000 60,000 60,000
Expenditures:
Salaries and Benefits - - - - -
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - 1,238,500
Total Expenditures - - - - 1,238,500
Change in Fund Balance 153,251 60,000 60,000 60,000 (1,178,500)
Ending Fund Balance 2,835,751$ 2,802,500$ 2,895,751$ 2,955,751$ 1,777,251$
2024-25
Page 211 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 20
Table 16: Drainage Facilities Fund
Fund 271 State COPS Block Grant
The Fund 271 State COPS Block Grant Fund accounts for the receipt and use of monies
from the State of California and is restricted to the purchase of police equipment and
technology for crime prevention. The anticipated revenues remained consistent
compared to the current budget. The expenditure budget increased by $200,000 in FY
2025-26, is related to the Capital Improvement project Public Safety Camera System –
Phase 2. The expenditure budget increased by $125,000 in FY 2026-27, is related to the
Capital Improvement project to upgrade the Report Management System to coincide with
the San Luis Obispo Sherriff’s Department upgrade. The anticipated fund balance at the
end of FY 2026-27 is $822,370 as shown in Table 17.
Table 17: State COPS Block Grant Fund
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 5,891$ 5,891$ 5,965$ 5,965$ 9,965$
Revenues:
Revenues 74 - - 4,000 4,000
Transfers In - - - - -
Total Revenues 74 - - 4,000 4,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 12,500
Total Expenditures - - - - 12,500
Change in Fund Balance 74 - - 4,000 (8,500)
Ending Fund Balance 5,965$ 5,891$ 5,965$ 9,965$ 1,465$
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 683,208$ 558,708$ 787,470$ 928,270$ 831,570$
Revenues:
Revenues 129,558 140,800 140,800 140,800 140,800
Transfers In - - - - -
Total Revenues 129,558 140,800 140,800 140,800 140,800
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 240 - - 12,500 -
Capital Outlay 25,056 - - 25,000 25,000
Transfers Out - - - 200,000 125,000
Total Expenditures 25,296 - - 237,500 150,000
Change in Fund Balance 104,262 140,800 140,800 (96,700) (9,200)
Ending Fund Balance 787,470$ 699,508$ 928,270$ 831,570$ 822,370$
2024-25
Page 212 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 21
Summary
The proposed FY 2025-26 Budget recommends approximately $55.7 million in
expenditures, including operating costs such as salaries, benefits, services, supplies,
maintenance, debt service, and capital related items as shown in the consolidated fu nd
summary as shown in Table 18.
Table 18: FY 2025-26 Consolidated Fund Summary
The proposed FY 2026-27 Budget recommends approximately $55.4 million in
expenditures, including operating costs such as salaries, benefits, service s, supplies,
maintenance, debt service, and capital related items as shown in the consolidated fund
summary as shown in Table 19.
Table 19: FY 2026-27 Consolidated Fund Summary
Beginning Fund Balance 7,460,674$ 3,753,651$ 1,440,000$ 6,699,779$ 13,107,016$ 5,112,605$ 37,573,724$
Revenues:
Revenues 20,304,750 2,942,500 5,870,000 10,562,195 2,512,248 423,944 42,615,637
Transfers In 2,940,200 - - 5,684,397 695,000 - 9,319,597
Total Revenues 23,244,950 2,942,500 5,870,000 16,246,592 3,207,248 423,944 51,935,234
Expenditures:
Salaries and Benefits 14,294,300 - - 1,363,900 623,100 - 16,281,300
Services and Supplies 10,285,805 1,264,800 32,500 6,535,768 835,391 7,900 18,962,163
Debt Service 294,386 - - - 8,369 382,944 685,699
Capital Outlay 13,000 - - 929,000 165,000 - 1,107,000
Transfers Out 115,000 3,301,880 5,952,640 8,017,547 1,262,000 35,900 18,684,967
Total Expenditures 25,002,491 4,566,680 5,985,140 16,846,214 2,893,860 426,744 55,721,129
Total Operating Incr/(Decr)(1,757,541) (1,624,180) (115,140) (599,623) 313,387 (2,800) (3,785,895)
Available Fund Balance 5,703,133$ 2,129,471$ 1,324,860$ 6,100,156$ 13,420,403$ 5,109,805$ 33,787,829$
Total
Enterprise
Funds
Agency
Funds
General
Fund Measure O-06
Special
Revenue Measure E-24
Beginning Fund Balance 5,703,133$ 2,129,471$ 1,324,860$ 6,100,156$ 13,420,403$ 5,109,805$ 33,787,828$
Revenues:
Revenues 21,180,350 3,019,500 6,025,000 10,873,332 2,530,161 423,944 44,052,287
Transfers In 2,986,900 - - 4,081,705 730,000 - 7,798,605
Total Revenues 24,167,250 3,019,500 6,025,000 14,955,037 3,260,161 423,944 51,850,893
Expenditures:
Salaries and Benefits 14,881,600 - - 1,418,700 647,300 - 16,947,600
Services and Supplies 10,607,250 1,150,600 32,500 5,094,450 971,941 7,900 17,864,641
Debt Service 282,786 - - - 8,369 382,944 674,099
Capital Outlay 51,529 - - 1,598,000 165,000 - 1,814,529
Transfers Out 115,000 2,286,435 5,846,200 8,364,000 1,315,500 179,900 18,107,035
Total Expenditures 25,938,165 3,437,035 5,878,700 16,475,150 3,108,111 570,744 55,407,905
Total Operating Incr/(Decr)(1,770,915) (417,535) 146,300 (1,520,113) 152,050 (146,800) (3,557,012)
Available Fund Balance 3,932,218$ 1,711,936$ 1,471,160$ 4,580,044$ 13,572,453$ 4,963,005$ 30,230,816$
General
Fund Measure O-06 Measure E-24
Enterprise
Funds
Agency
Funds Total
Special
Revenue
Page 213 of 236
Item 11.a.
City Council
Review Preliminary FY 2025-27 Biennial Operating Budget
May 27, 2025
Page 22
Next Steps
The FY 2025-27 Biennial Budget will be presented to the City Council at a Public Hearing
held on June 10, 2025. Once approved by the City Council, funds will be appropriated on
July 1, 2025, for FY 2025-26.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Review and provide direction on the Preliminary FY 2025-27 Biennial Budget; or
2. Provide other direction to staff.
ADVANTAGES:
Providing direction will assist staff in developing the Preliminary FY 202 5-27 Biennial
Budget that is responsive to the City’s needs and community p riorities, while maintaining
economic feasibility.
DISADVANTAGES:
There are no disadvantages to providing information for the community, City Council, or
staff regarding the Preliminary FY 2025-27 Biennial Budget.
ENVIRONMENTAL REVIEW:
The development of the Preliminary FY 2025-27 Biennial Budget plan is not a project
subject to the California Environmental Quality Act (“CEQA”) because it has no potential
to result in either a direct, or reasonably foreseeable indirect, physical change in the
environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.) Individual
projects listed herein may be subject to CEQA and environmental reviews will be
conducted at the appropriate time during implementation of those projects.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. FY 2025-27 Budget Fund Summaries
2. FY 2025-27 Council Goals Work Plans
Page 214 of 236
FUND SUMMARIES CONSOLIDATED SUMMARY – ALL FUNDS
2025-26 BUDGET
2026-27 BUDGET
Beginning Fund Balance 7,460,674$ 3,753,651$ 1,440,000$ 6,699,779$ 13,107,016$ 5,112,605$ 37,573,724$
Revenues:
Revenues 20,304,750 2,942,500 5,870,000 10,562,195 2,512,248 423,944 42,615,637
Transfers In 2,940,200 - - 5,684,397 695,000 - 9,319,597
Total Revenues 23,244,950 2,942,500 5,870,000 16,246,592 3,207,248 423,944 51,935,234
Expenditures:
Salaries and Benefits 14,294,300 - - 1,363,900 623,100 - 16,281,300
Services and Supplies 10,285,805 1,264,800 32,500 6,535,768 835,391 7,900 18,962,163
Debt Service 294,386 - - - 8,369 382,944 685,699
Capital Outlay 13,000 - - 929,000 165,000 - 1,107,000
Transfers Out 115,000 3,301,880 5,952,640 8,017,547 1,262,000 35,900 18,684,967
Total Expenditures 25,002,491 4,566,680 5,985,140 16,846,214 2,893,860 426,744 55,721,129
Total Operating Incr/(Dec (1,757,541) (1,624,180) (115,140) (599,623) 313,387 (2,800) (3,785,895)
Available Fund Balance 5,703,133$ 2,129,471$ 1,324,860$ 6,100,156$ 13,420,403$ 5,109,805$ 33,787,829$
Total
Enterprise
Funds
Agency
Funds
General
Fund Measure O-06
Special
Revenue Measure E-24
Beginning Fund Balance 5,703,133$ 2,129,471$ 1,324,860$ 6,100,156$ 13,420,403$ 5,109,805$ 33,787,828$
Revenues:
Revenues 21,180,350 3,019,500 6,025,000 10,873,332 2,530,161 423,944 44,052,287
Transfers In 2,986,900 - - 4,081,705 730,000 - 7,798,605
Total Revenues 24,167,250 3,019,500 6,025,000 14,955,037 3,260,161 423,944 51,850,893
Expenditures:
Salaries and Benefits 14,881,600 - - 1,418,700 647,300 - 16,947,600
Services and Supplies 10,607,250 1,150,600 32,500 5,094,450 971,941 7,900 17,864,641
Debt Service 282,786 - - - 8,369 382,944 674,099
Capital Outlay 51,529 - - 1,598,000 165,000 - 1,814,529
Transfers Out 115,000 2,286,435 5,846,200 8,364,000 1,315,500 179,900 18,107,035
Total Expenditures 25,938,165 3,437,035 5,878,700 16,475,150 3,108,111 570,744 55,407,905
Total Operating Incr/(Dec (1,770,915) (417,535) 146,300 (1,520,113) 152,050 (146,800) (3,557,012)
Available Fund Balance 3,932,218$ 1,711,936$ 1,471,160$ 4,580,044$ 13,572,453$ 4,963,005$ 30,230,816$
Enterprise
Funds
Agency
Funds Total
Special
Revenue
General
Fund Measure O-06 Measure E-24
ATTACHMENT 1
Page 215 of 236
FUND SUMMARIES
GENERAL FUNDS
FUND: 100 GENERAL FUND
2023-24 2025-26 2026-27
FINAL ADOPTED ADJUSTED ESTIMATED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance 11,862,259$ 11,494,147$ 11,494,147$ 11,494,147$ 7,460,674$ 5,703,133$
Revenues:
Revenues 19,922,366 19,226,070 19,135,570 19,540,458 20,304,750 21,180,350
Transfers In 2,755,008 2,796,300 2,796,300 3,081,800 2,940,200 2,986,900
Total Revenues 22,677,374 22,022,370 21,931,870 22,622,258 23,244,950 24,167,250
Expenditures:
Salaries and Benefits 12,790,046 13,538,725 13,611,716 13,808,090 14,294,300 14,881,600
Services and Supplies 8,993,251 9,771,973 9,947,300 9,686,903 10,285,805 10,607,250
Debt Service 310,018 294,386 294,386 302,422 294,386 282,786
Capital Outlay 135,043 129,500 269,500 383,316 13,000 51,529
Transfers Out 817,128 2,475,000 2,475,000 2,475,000 115,000 115,000
Total Expenditures 23,045,486 26,209,584 26,597,902 26,655,731 25,002,491 25,938,165
Total Operating Increases (Decreases (368,112) (4,187,214) (4,666,032) (4,033,473) (1,757,541) (1,770,915)
Available Fund Balance 11,494,147$ 7,306,933$ 6,828,115$ 7,460,674$ 5,703,133$ 3,932,218$
Percent of Expenditures 49.9% 27.9% 25.7% 28.0% 22.8% 15.2%
This is the primary operating fund of the City, which accounts for resources and services traditionally associated with
government. The General Fund provides administrative, financial, police protection, community development, public
works, and recreation services to the community and other funds. The General Fund accounts for revenues that have
unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund.
2024-25
ATTACHMENT 1
Page 216 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED ESTIMATED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance 7,625,336$ 1,759,416$ 4,755,997$ 4,755,997$ 3,753,651$ 2,129,471$
Revenues:
Revenues 3,283,349 2,962,000 2,962,000 2,891,000 2,942,500 3,019,500
Transfers In - - - - - -
Total Revenues 3,283,349 2,962,000 2,962,000 2,891,000 2,942,500 3,019,500
Expenditures:
Salaries and Benefits - - - - - -
Services and Supplies 1,006,561 1,041,500 1,041,500 1,087,000 1,119,800 1,150,600
Capital Outlay - - - - - -
Transfers Out 5,146,127 2,109,272 7,943,991 2,806,346 3,446,880 2,286,435
Total Expenditures 6,152,688 3,150,772 8,985,491 3,893,346 4,566,680 3,437,035
Change in Fund Balance (2,869,340) (188,772) (6,023,491) (1,002,346) (1,624,180) (417,535)
Ending Fund Balance 4,755,997$ 1,570,644$ (1,267,494)$ 3,753,651$ 2,129,471$ 1,711,936$
FUND: 120 MEASURE O-06 LOCAL SALES TAX
This fund accounts for the revenues derived from Measure O 2006 Sales Tax, a local 1/2% sales tax
approved by the City's voters in November 2006.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED ESTIMATED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Beginning Fund Balance -$ -$ -$ -$ 1,440,000$ 1,324,860$
Revenues:
Revenues - - - 1,440,000 5,870,000 6,025,000
Transfers In - - - - - -
Total Revenues - - - 1,440,000 5,870,000 6,025,000
Expenditures:
Salaries and Benefits - - - - - -
Services and Supplies - - - - 32,500 32,500
Capital Outlay - - - - - -
Transfers Out - - - - 5,952,640 5,846,200
Total Expenditures - - - - 5,985,140 5,878,700
Change in Fund Balance - - - 1,440,000 (115,140) 146,300
Ending Fund Balance -$ -$ -$ 1,440,000$ 1,324,860$ 1,471,160$
FUND: 140 MEASURE E-24 LOCAL SALES TAX
This fund accounts for the revenues derived from Measure E 2024 Sales Tax, a local 1% sales tax approved
by the City's voters in November 2024.
2024-25
ATTACHMENT 1
Page 217 of 236
FUND SUMMARIES
ENTERPRISE FUNDS
FUND: 612 SEWER
2025-26 2026-27
2023-24 AD OPTED AMENDED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 1,777,995$ 1,812,690$ 1,768,179$ 1,711,020$ 1,861,620$
Revenues:
Revenues 1,190,944 1,272,250 1,272,541 1,383,100 1,424,400
Transfers In 188,378 - - - -
Total Revenues 1,379,323 1,272,250 1,272,541 1,383,100 1,424,400
Expenses:
Salaries and Benefits 349,742 425,000 425,000 444,900 462,900
Services and Supplies 176,577 223,300 223,300 221,200 216,100
Debt Service - - - - -
Operating Equipment 49,503 2,500 2,500 35,000 175,000
Capital Improvement Progra 263,054 100,000 100,000 - 332,000
Transfers Out 550,263 578,900 578,900 531,400 578,900
Total Expenditures 1,389,139 1,329,700 1,329,700 1,232,500 1,764,900
Ending Available Working Capi 1,768,179$ 1,755,240$ 1,711,020$ 1,861,620$ 1,521,120$
2024-25
This fund is used to account for maintenance of sewer lines connecting City residents to the South
San Luis Obispo County Sanitation District sewer treatment plant. Money is collected from utility
bills paid by customers.
ATTACHMENT 1
Page 218 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PR OPOSED PROPOSED
ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 346,404$ 383,404$ 378,609$ 415,609$ 452,609$
Revenues:
Revenues 32,205 37,000 37,000 37,000 37,000
Transfers In - - - - -
Total Revenues 32,205 37,000 37,000 37,000 37,000
Expenses:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Debt Service - - - - -
Capital Outlay - - - - -
Capital Improvement Program - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Ending Available Working Capital 378,609$ 420,404$ 415,609$ 452,609$ 489,609$
FUND: 634 SEWER FACILITY
This fund is used to account for the accumulation of sewer facility revenues to be used in capital
improvement projects in the City. Money is collected from development to offset the impacts new
development has on the sewer collection system.
2024-25
FUND: 640 WATER
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 3,129,383$ 3,981,134$ 3,096,538$ 2,210,920$ 1,431,068
Revenues:
Revenues 7,789,724 8,497,590 8,497,590 9,077,095 9,346,932
Transfers In 705,531 - - 401,100 191,955
Total Revenues 8,495,255 8,497,590 8,497,590 9,478,195 9,538,887
Expenses:
Salaries and Benefits 752,307 853,500 853,500 919,000 955,800
Services and Supplies 769,226 1,619,800 938,800 958,900 988,600
Debt Service 55,000 - - - -
Capital Outlay (10,785) 45,000 45,000 94,000 206,000
Capital Improvement Pr 1,159,486 430,000 430,000 800,000 885,000
Transfers Out 5,802,865 5,762,950 7,115,908 7,486,147 7,785,100
Total Expenditures 8,528,100 8,711,250 9,383,208 10,258,047 10,820,500
Ending Available Working 3,096,538$ 3,767,474$ 2,210,920$ 1,431,068$ 149,456
This fund is used to account for the activities associated with the transmission and distribution
of potable water by the City to its users. Money is collected from utility bills paid by customers.
2024-25
ATTACHMENT 1
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FUND SUMMARIES
FUND: 641 LOPEZ
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 1,202,662$ 1,256,189$ 1,202,662$ 1,202,662$ 1,130,291$
Revenues:
Revenues - - - - -
Transfers In 3,908,594 3,889,750 5,242,708 5,283,297 3,889,750
Total Revenues 3,908,594 3,889,750 5,242,708 5,283,297 3,889,750
Expenses:
Salaries and Benefits - - - - -
Services and Supplies 3,908,594 3,889,749 5,242,707 5,355,668 3,889,750
Debt Service - - - - -
Capital Outlay - - - - -
Capital Improvement Program - - - - -
Transfers Out - - - - -
Total Expenditures 3,908,594 3,889,749 5,242,707 5,355,668 3,889,750
Ending Available Working Capital 1,202,662$ 1,256,189$ 1,202,662$ 1,130,291$ 1,130,291$
This fund is responsible for the purchase of water from Lopez Dam. The City has a 50.55% share of the
water and expense generated by Zone 3 – County of San Luis Obispo’s Flood Control and Water
C o nservation District.
2024-25
FUND: 642 WATER FACILITY
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Working Capital 1,027,028 828,542 1,094,568 1,159,568$ 1,224,568$
Revenues:
Revenues 67,540 65,000 65,000 65,000 65,000
Transfers In - - - - -
Total Revenues 67,540 65,000 65,000 65,000 65,000
Expenses:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Debt Service - - - - -
Capital Outlay - - - - -
Capital Improvement Progra - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Ending Available Working Cap 1,094,568$ 893,542$ 1,159,568$ 1,224,568$ 1,289,568$
This fund is used to account for the accumulation of water facility revenues to be used in capital
improvement projects in the City. Money is collected from development to offset the impacts new
development has on the water distribution system.
2024-25
ATTACHMENT 1
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FUND SUMMARIES
SPECIAL REVENUE FUNDS
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 382,385$ 403,385$ 426,745$ 452,745$ 478,745$
Revenues:
Revenues 44,361 26,000 26,000 26,000 26,000
Transfers In - - - - -
Total Revenues 44,361 26,000 26,000 26,000 26,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 44,361 26,000 26,000 26,000 26,000
Ending Fund Balance 426,745$ 429,385$ 452,745$ 478,745$ 504,745$
FUND: 210 FIRE PROTECTION IMPACT FEES
This fund accounts for impact fees collected from developers for the expansion
of the existing fire station in order to serve future development.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 221,070$ 0$ (120)$ 2,180$ 4,480$
Revenues:
Revenues 48,778 46,200 42,200 42,200 42,200
Transfers In - - -
Total Revenues 48,778 46,200 42,200 42,200 42,200
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 269,969 39,900 39,900 39,900 39,900
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 269,969 39,900 39,900 39,900 39,900
Change in Fund Balance (221,190) 6,300 2,300 2,300 2,300
Ending Fund Balance (120)$ 6,300$ 2,180$ 4,480$ 6,780$
FUND: 211 PUBLIC ACCESS TELEVISION
This fund accounts for fees collected from Charter Communications that are restricted for
support of public, education, and government access programming and equipment.
2024-25
ATTACHMENT 1
Page 221 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 58,518$ 63,818$ 64,023$ 69,323$ 74,623$
Revenues:
Revenues 5,504 5,300 5,300 5,300 5,300
Transfers In - - - -
Total Revenues 5,504 5,300 5,300 5,300 5,300
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 25,000
Total Expenditures - - - - 25,000
Change in Fund Balance 5,504 5,300 5,300 5,300 (19,700)
Ending Fund Balance 64,023$ 69,118$ 69,323$ 74,623$ 54,923$
FUND: 212 POLICE PROTECTION IMPACT FEES
2024-25
This fund accounts for impact fees collected from developers for the expansion
of the existing police facility in order to serve future development.
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 1,430,686$ 1,486,686$ 1,490,533$ 1,546,533$ 1,602,533$
Revenues:
Revenues 59,846 56,000 56,000 56,000 56,000
Transfers In - - -
Total Revenues 59,846 56,000 56,000 56,000 56,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 310,000
Total Expenditures - - - - 310,000
Change in Fund Balance 59,846 56,000 56,000 56,000 (254,000)
Ending Fund Balance 1,490,533$ 1,542,686$ 1,546,533$ 1,602,533$ 1,348,533$
FUND: 213 PARK FACILITIES
2024-25
This fund accounts for the receipts of park-in-lieu fees (Quimby) and grant revenues that
are used for construction, park acquisition, and development of park facilities.
ATTACHMENT 1
Page 222 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 28,486$ 30,686$ 32,468$ 34,668$ 37,018$
Revenues:
Revenues 3,982 2,200 2,200 2,350 2,350
Transfers In - - - - -
Total Revenues 3,982 2,200 2,200 2,350 2,350
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 3,982 2,200 2,200 2,350 2,350
Ending Fund Balance 32,468$ 32,886$ 34,668$ 37,018$ 39,368$
FUND: 215 RECREATION COMMUNITY CENTER
This fund accounts for impact fees collected from developers and used for
recreation facilities in order to maintain the adopted level of service of
recreation/community center facilities of 542 square feet per thousand
population.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PR OPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 189,988$ 178,888$ 207,747$ 196,647$ 185,547$
Revenues:
Revenues 56,245 50,900 50,900 50,900 50,900
Transfers In - - - - -
Total Revenues 56,245 50,900 50,900 50,900 50,900
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 38,487 62,000 62,000 62,000 62,000
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 38,487 62,000 62,000 62,000 62,000
Change in Fund Balance 17,759 (11,100) (11,100) (11,100) (11,100)
Ending Fund Balance 207,747$ 167,788$ 196,647$ 185,547$ 174,447$
FUND: 214 PARK IMPROVEMENT
Impact fees collected from developers for park improvements are to be used to
maintain the adopted level of service for neighborhood and community parks of
4.0 acres per thousand population. This fund accounts for the receipt and use of
these monies.
2024-25
ATTACHMENT 1
Page 223 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 28,486$ 30,686$ 32,468$ 34,668$ 37,018$
Revenues:
Revenues 3,982 2,200 2,200 2,350 2,350
Transfers In - - - - -
Total Revenues 3,982 2,200 2,200 2,350 2,350
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 3,982 2,200 2,200 2,350 2,350
Ending Fund Balance 32,468$ 32,886$ 34,668$ 37,018$ 39,368$
FUND: 215 RECREATION COMMUNITY CENTER
This fund accounts for impact fees collected from developers and used for
recreation facilities in order to maintain the adopted level of service of
recreation/community center facilities of 542 square feet per thousand
population.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 32,872$ 26,737$ 34,455$ 28,320$ 22,220$
Revenues:
Revenues 10,645 10,000 10,000 10,000 10,000
Transfers In - - - - -
Total Revenues 10,645 10,000 10,000 10,000 10,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 7,467 14,535 14,535 14,500 14,700
Capital Outlay - - - - -
Transfers Out 1,596 1,600 1,600 1,600 1,600
Total Expenditures 9,063 16,135 16,135 16,100 16,300
Change in Fund Balance 1,583 (6,135) (6,135) (6,100) (6,300)
Ending Fund Balance 34,455$ 20,602$ 28,320$ 22,220$ 15,920$
FUND: 216 GRACE LANE ASSESSMENT DISTRICT
This fund accounts for the landscape maintenance within the Grace Lane
housing tract. A special benefit assessment is levied on property owners to
pay for landscape maintenance expenditures.
2024-25
ATTACHMENT 1
Page 224 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 5,014$ 5,014$ 6,445$ 6,445$ 5,245$
Revenues:
Revenues 5,759 5,900 5,900 5,900 5,900
Transfers In - - - - -
Total Revenues 5,759 5,900 5,900 5,900 5,900
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 2,924 5,700 5,700 5,700 5,700
Capital Outlay - - - - -
Transfers Out 1,404 200 200 1,400 1,400
Total Expenditures 4,328 5,900 5,900 7,100 7,100
Change in Fund Balance 1,431 - - (1,200) (1,200)
Ending Fund Balance 6,445$ 5,014$ 6,445$ 5,245$ 4,045$
This fund accounts for the landscape maintenance of parkways within two
housing tracts. A special benefit assessment is levied on property owners to
pay for landscape maintenance expenditures.
FUND: 217 LANDSCAPE MAINTENANCE DISTRICTS
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 489,296$ 501,116$ 532,177$ 293,997$ 305,797$
Revenues:
Revenues 63,944 46,500 46,500 46,500 46,500
Transfers In - - - - -
Total Revenues 63,944 46,500 46,500 46,500 46,500
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 18,760 32,380 32,380 32,400 32,400
Capital Outlay - - - - -
Transfers Out 2,304 252,300 252,300 2,300 2,300
Total Expenditures 21,064 284,680 284,680 34,700 34,700
Change in Fund Balance 42,881 (238,180) (238,180) 11,800 11,800
Ending Fund Balance 532,177$ 262,936$ 293,997$ 305,797$ 317,597$
2024-25
FUND: 219 PARKSIDE ASSESSMENT DISTRICT
This fund accounts for revenue derived from annual assessments, which are
used to pay the cost incurred by the City for landscape maintenance.
ATTACHMENT 1
Page 225 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 81,325$ 66,564$ 3,569$ 63,522$ 62,352
Revenues:
Revenues 995,352 972,800 1,026,422 1,044,700 1,059,800
Transfers In 474,996 655,000 655,000 695,000 730,000
Total Revenues 1,470,348 1,627,800 1,681,422 1,739,700 1,789,800
Expenditures:
Salaries and Benefits 618,732 600,300 600,300 623,100 647,300
Services and Supplies 346,722 382,700 317,700 382,700 382,700
Debt Service 8,369 8,369 8,369 8,369 8,369
Capital Outlay 14,127 140,000 140,000 140,000 140,000
Transfers Out 560,154 561,100 555,100 586,700 605,200
Total Expenditures 1,548,105 1,692,469 1,621,469 1,740,869 1,783,569
Change in Fund Balance (77,757) (64,669) 59,953 (1,169) 6,231
Ending Fund Balance 3,569$ 1,896$ 63,522$ 62,352$ 68,582
This fund accounts for receipts and expenditures of money apportioned by the State under
Streets and Highway Code. The use of gas tax revenues can only be used to construct and
maintain streets, roads and highways.
2024-25
FUND: 220 STREETS (GAS TAX)
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 1,136,640$ 1,172,640$ 1,195,833$ 1,231,833$ 1,267,833
Revenues:
Revenues 59,193 36,000 36,000 36,000 36,000
Transfers In - - - - -
Total Revenues 59,193 36,000 36,000 36,000 36,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 59,193 36,000 36,000 36,000 36,000
Ending Fund Balance 1,195,833$ 1,208,640$ 1,231,833$ 1,267,833$ 1,303,833
This fund accounts for traffic signalization assessment levied against developments for
the future cost of traffic signals.
FUND: 222 TRAFFIC SIGNALIZATION
2024-25
ATTACHMENT 1
Page 226 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 153,496$ 153,996$ 159,741$ 160,241$ 160,741
Revenues:
Revenues 6,245 500 500 500 500
Transfers In - - - - -
Total Revenues 6,245 500 500 500 500
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 6,245 500 500 500 500
Ending Fund Balance 159,741$ 154,496$ 160,241$ 160,741$ 161,241$
FUND: 223 TRAFFIC CIRCULATION
This fund accounts for developer traffic mitigation measure fees charged as a
result of an environmental review.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 2,682,500$ 2,742,500$ 2,835,751$ 2,895,751$ 2,955,751$
Revenues:
Revenues 153,251 60,000 60,000 60,000 60,000
Transfers In - - - - -
Total Revenues 153,251 60,000 60,000 60,000 60,000
Expenditures:
Salaries and Benefits - - - - -
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - 1,238,500
Total Expenditures - - - - 1,238,500
Change in Fund Balance 153,251 60,000 60,000 60,000 (1,178,500)
Ending Fund Balance 2,835,751$ 2,802,500$ 2,895,751$ 2,955,751$ 1,777,251$
FUND: 224 TRANSPORTATION FACILITY IMPACT
This fund accounts for developer impact fees (AB1600 fees) paid to protect the public
health, safety, and welfare by maintaining the existing level of public services for
existing and future residents within the City of Arroyo Grande.
2024-25
ATTACHMENT 1
Page 227 of 236
FUND SUMMARIES
FUND: 225 TRANSPORTATION
2025-26 2026-27
2023-24 AD OPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 1,337,178$ 1,452,178$ 1,412,141$ 1,348,141$ 1,244,141$
Revenues:
Revenues 474,959 516,000 516,000 516,000 516,000
Transfers In - - - - -
Total Revenues 474,959 516,000 516,000 516,000 516,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Debt Service - - -
Capital Outlay - - - - -
Transfers Out 399,996 580,000 580,000 620,000 655,000
Total Expenditures 399,996 580,000 580,000 620,000 655,000
Change in Fund Balance 74,963 (64,000) (64,000) (104,000) (139,000)
Ending Fund Balance 1,412,141$ 1,388,178$ 1,348,141$ 1,244,141$ 1,105,141$
This revenue source is provided by the San Luis Obispo County of Government’s
(SLOCOG) Local Transportation Fund (LTF). The annual appropriation is restricted to
transportation systems, including transit, pedestrian, street and road maintenance.
2024-25
2025-26 2026-27
2023-24 AD OPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 218,316$ 108,116$ 251,183$ 165,883$ 145,583$
Revenues:
Revenues 55,066 52,000 52,000 52,000 52,000
Transfers In - - - - -
Total Revenues 55,066 52,000 52,000 52,000 52,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 22,199 137,300 137,300 72,300 72,300
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 22,199 137,300 137,300 72,300 72,300
Change in Fund Balance 32,867 (85,300) (85,300) (20,300) (20,300)
Ending Fund Balance 251,183$ 22,816$ 165,883$ 145,583$ 125,283$
FUND: 226 WATER NEUTRALIZATION IMPACT
The City requires development projects that increase total water consumption in the
City to “neutralize” that demand by reducing water consumption in existing
development by an equivalent amount or by paying a fee in-lieu of performing water
consumption reductions. This fund accounts for the amount collected from
developers and is used towards the City’s water conservation efforts.
2024-25
ATTACHMENT 1
Page 228 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 5,891$ 5,891$ 5,965$ 5,965$ 9,965$
Revenues:
Revenues 74 - - 4,000 4,000
Transfers In - - - - -
Total Revenues 74 - - 4,000 4,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - 12,500
Total Expenditures - - - - 12,500
Change in Fund Balance 74 - - 4,000 (8,500)
Ending Fund Balance 5,965$ 5,891$ 5,965$ 9,965$ 1,465$
FUND: 231 DRAINAGE FACILITY
This fund accounts for impact fees paid by development and are restricted to
improving drainage within the City.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 1,172,609$ 750,738$ 1,306,929$ 255,059$ 281,559$
Revenues:
Revenues 134,321 26,500 26,500 26,500 26,500
Transfers In - - - - -
Total Revenues 134,321 26,500 26,500 26,500 26,500
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - 448,370 1,078,370 - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - 448,370 1,078,370 - -
Change in Fund Balance 134,321 (421,870) (1,051,870) 26,500 26,500
Ending Fund Balance 1,306,929$ 328,868$ 255,059$ 281,559$ 308,059$
FUND: 232 IN-LIEU AFFORDABLE HOUSING
This fund accounts for monies paid by developers in meeting the City's mandatory
affordable housing requirements.
2024-25
ATTACHMENT 1
Page 229 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 19,841$ 19,841$ 20,648$ 20,648$ 20,648$
Revenues:
Revenues 807 - - - -
Transfers In - - - - -
Total Revenues 807 - - - -
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 807 - - - -
Ending Fund Balance 20,648$ 19,841$ 20,648$ 20,648$ 20,648$
This fund accounts for monies paid by developers in meeting the City's
underground utility requirements.
2024-25
FUND: 233 IN-LIEU UNDERGROUND UTILITY
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 436,489$ 420,739$ 438,185$ 295,355$ 298,453$
Revenues:
Revenues 299,754 319,020 319,020 328,598 319,020
Transfers In - - - - -
Total Revenues 299,754 319,020 319,020 328,598 319,020
Salaries and Benefits - - - - -
Services and Supplies 248,055 411,850 411,850 275,500 411,850
Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out 50,004 50,000 50,000 50,000 50,000
Total Expenditures 298,059 461,850 461,850 325,500 461,850
Change in Fund Balance 1,695 (142,830) (142,830) 3,098 (142,830)
Ending Fund Balance 438,185$ 277,909$ 295,355$ 298,453$ 155,623$
The purpose of the Tourism Business Improvement District (TBID) is to provide
projects, programs and activities that benefit lodging businesses located and
operating within the City of Arroyo Grande. A two percent (2%) assessment is
levied on all lodging businesses of the rent charged by the operator per occupied
room per night for all transient occupancies. Revenue collected is used to promote
the lodging industry within the City.
2024-25
FUND: 240 TOURISM BUSINESS IMPROVEMENT DISTRICT
ATTACHMENT 1
Page 230 of 236
FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 40,851$ 56,080$ 73,035$ 131,035$ 189,035$
Revenues:
Revenues 32,184 58,000 58,000 58,000 58,000
Transfers In - - - - -
Total Revenues 32,184 58,000 58,000 58,000 58,000
Expenditures:
Services and Supplies - - - - -
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - - - - -
Change in Fund Balance 32,184 58,000 58,000 58,000 58,000
Ending Fund Balance 73,035$ 114,080$ 131,035$ 189,035$ 247,035$
FUND: 241 WATER AVAILABILITY FUND
Pursuant to the provisions of Section 38743 of the Government Code, water availability
charges is a “special charge” which is levied to each parcel of property not served with
city water. These charges are restricted for the sole purpose of expanding water
supply such as desalination plant, recycled water, scalping plant, etc.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 20,923$ 0$ 83,654$ 83,654$ 71,263
Revenues:
Revenues 62,731 12,391 202,012 - 12,391
Transfers In - - - - -
Total Revenues 62,731 12,391 202,012 - 12,391
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies - 56,749 202,012 12,391 12,391
Debt Service - - - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures - 56,749 202,012 12,391 12,391
Change in Fund Balance 62,731 (44,358) - (12,391) -
Ending Fund Balance 83,654$ (44,358)$ 83,654$ 71,263$ 71,263
FUND: 250 CDBG GRANT FUND
This fund accounts for revenues and expenditures related to Community
Development Block Grant (CDBG) Funds. The program is a flexible program that
provides the City with resources to address a wide range of unique community
development needs.
2024-25
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FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 683,208$ 558,708$ 787,470$ 928,270$ 831,570$
Revenues:
Revenues 129,558 140,800 140,800 140,800 140,800
Transfers In - - - - -
Total Revenues 129,558 140,800 140,800 140,800 140,800
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 240 - - 12,500 -
Capital Outlay 25,056 - - 25,000 25,000
Transfers Out - - - 200,000 125,000
Total Expenditures 25,296 - - 237,500 150,000
Change in Fund Balance 104,262 140,800 140,800 (96,700) (9,200)
Ending Fund Balance 787,470$ 699,508$ 928,270$ 831,570$ 822,370$
FUND: 271 STATE COPS BLOCK GRANT
This fund accounts for the receipt and use of monies from the State of California
restricted to the purchase of police equipment and technology for crime prevention.
2024-25
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FUND SUMMARIES
AGENCY FUNDS
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 3,453,077$ 3,257,408$ 3,257,408$ 3,255,408$ 3,253,408$
Revenues:
Revenues 6,456 412,944 412,944 412,944 412,944
Transfers In - - - - -
Total Revenues 6,456 412,944 412,944 412,944 412,944
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 3,350 2,000 2,000 2,000 2,000
Debt Service 168,775 382,944 382,944 382,944 382,944
Capital Outlay - - - - -
Transfers Out 30,000 30,000 30,000 30,000 30,000
Total Expenditures 202,125 414,944 414,944 414,944 414,944
Change in Fund Balance (195,669) (2,000) (2,000) (2,000) (2,000)
Ending Fund Balance 3,257,408$ 3,255,408$ 3,255,408$ 3,253,408$ 3,251,408$
FUND: 286 SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY
This private-purpose trust fund was created to hold the assets of the former redevelopment
agency of the City of Arroyo Grande until they are distributed to other units of state and local
government after the payment of enforceable obligations have been made.
2024-25
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FUND SUMMARIES
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 1,675,016$ 1,701,201$ 1,701,201$ 1,699,701$ 1,698,201$
Revenues:
Revenues 27,859 - - - -
Transfers In - - - - -
Total Revenues 27,859 - - - -
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 1,674 1,500 1,500 1,500 1,500
Debt Service - - -
Capital Outlay - - - - -
Transfers Out - - - - -
Total Expenditures 1,674 1,500 1,500 1,500 1,500
Ending Fund Balance 1,701,201$ 1,699,701$ 1,699,701$ 1,698,201$ 1,696,701$
FUND: 287 SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY - HOUSING FUNCTION
This private-purpose trust fund was created to hold the housing assets of the former redevelopment
agency of the City of Arroyo Grande until they are distributed to other units of state and local
government after the payment of enforceable obligations have been made.
2024-25
2025-26 2026-27
2023-24 ADOPTED AMENDED PROPOSED PROPOSED
ITEM ACTUAL BUDGET BUDGET BUDGET BUDGET
Beginning Fund Balance 154,797$ 156,796$ 156,796$ 157,496$ 158,196$
Revenues:
Revenues 11,802 11,000 11,000 11,000 11,000
Transfers In 6,217 - - -
Total Revenues 18,018 11,000 11,000 11,000 11,000
Expenditures:
Salaries and Benefits - - - - -
Services and Supplies 10,115 4,400 4,400 4,400 4,400
Capital Outlay - - - - -
Transfers Out 5,904 5,900 5,900 5,900 149,900
Total Expenditures 16,019 10,300 10,300 10,300 154,300
Ending Fund Balance 156,796$ 157,496$ 157,496$ 158,196$ 14,896$
FUND: 751 DOWNTOWN PARKINGThis agency fund collects assessments from Arroyo Grande Village merchants for the maintenance
of the Village parking lots for the Downtown Village Merchants Association.
2024-25
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Goal Strategy Task/Action Carryover Action or
New
Responsible
Department Anticipated to Start Completion Target
1.1 Revenue Generation 1.1a 400 W. Branch Disposition and Development Agreement Carryover CMO/CA/CD In Progress 1Q FY 2026-27
Pursue New Revenue
Sources
1.1b Develop a Special Event that drives visitation during shoulder and
winter months and build destination awareness Carryover Rec In Progress 4Q FY 2025-26
1.1c Develop an Economic Development Program New CMO 1Q FY 2025-26 4Q FY 2025-26
1.2 Consider Cannabis as a Means of 1.2a Evaluate cannabis operations that bring in revenue New CD/CMO 1Q FY 2025-26 2Q FY 2025-26
1.2b Conduct study session with the City Council regarding potential
cannabis ordinance Carryover CD/CA/CMO/LIS 3Q FY 2025-26 3Q FY 2025-26
1.2c Conduct study session with the City Council regarding potential
cannabis development agreement Carryover CD/CA/CMO/LIS 4Q FY 2025-26 4Q FY 2025-26
1.2d Prepare and adopt cannabis ordinance, if directed by the City Council Carryover CD/CA/CMO 4Q FY 2025-26 1Q FY 2026-27
1.2e Evaluate feasibility of a Cannabis Tax, if directed Carryover CD/AS/CA/CMO 4Q FY 2025-26 1Q FY 2026-27
1.3 Transient Occupany Tax
Changes 1.3a Work on changes to TBID ordinance for expanded use of TOT funds New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26
1.3b Bring changes to TBID assessment and ordinance to Council for
approval New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26
1.3c Evaluate opportunities related to City TBID and potential TOT
Measure New CMO/Rec/LIS In Progress 4Q FY 2024-25
1.3d Hold study session with City Council and visitor serving
accomodations to eliminate TBID New CMO/Rec/LIS 1Q FY 2025-26 1Q FY 2025-26
1.3e If directed by Council, issue RFP for consultant to develop a survey
and outreach strategy to community for TOT New CMO/LIS 1Q FY 2025-26 2Q FY 2025-26
1.3f Award contract for consultant to survey and develop outreach strategy
for TOT New CMO/LIS 2Q FY 2025-26 2Q FY 2025-26
1.3g Conduct public education regarding need for TOT New CMO/LIS 2Q FY 2025-26 2Q FY 2026-27
1.3h Bring TOT measure to City Council for consideration of placing on the
November 2026 ballot New CMO/Rec/LIS 4Q FY 2025-26 4Q FY 2025-26
2.1 Pursue 2026 State Water Ballot
Measure
2.1a Meet with Department of Public Works at the County of San Luis
Obispo to begin discussion surrounding purchasing some allocated State
Water
New CMO/PW 4Q FY 2024-25 1Q FY 2025-26
Achieve Water Resilience 2.1b If directed by Council, Issue an RFP for a Consultant to evaluate
feasibility of State Water Ballot Measure New CMO/PW/LIS 1Q FY 2025-26 1Q FY 2025-26
2.1c Award bid to consultant and begin public outreach and community
messaging regarding a potential State Water Ballot Measure New CMO/PW/LIS 2Q FY 2025-26 2Q FY 2026-27
2.1d Seek Council approval on placing a November Ballot Measure New CMO/PW/LIS 4Q FY 2025-26 4Q FY 2025-26
2.2 Seek new Water Sources 2.2a Identify opportunities and constraints associated with new Water
Sources New CMO/PW In Progress Ongoing
2.2b Support ongoing development and financing of regional water solution New CMO/PW In Progress Ongoing
2.2c Conduct a water and wastewater rate study to adjust rates based on
changes to water supply and changing or new regional partnerships New AS/PW 1Q FY 2025-26 4Q FY 2026-27
2.3 Work with Regional Partners 2.3a Preserve Lopez water supply by working with the County on Lopez
litigation New CMO/PW/CA In progress Ongoing
2.3b NCMA Management Agreement Amendments Carryover PW In progress Ongoing
Prioritize Key
Infrastructure Projects
3.1 Prioritize Key Infrastructure
Projects 3.1a 2025 Pavement Management Program Construction New PW 3Q FY 2025-26 4Q FY 2025-26
3.1b Traffic Way Bridge Replacement Project Carryover PW In progress 2Q FY 2025-26
3.1c Halcyon Complete Streets Design and Construction Carryover PW
3.1d Concrete Repair Program Carryover PW 2Q FY 2025-26 4Q FY 2025-26
3.1e CMP Lining Carryover CD/PW In Progress Ongoing
3.2 Pursue Alternative Funding
Sources for Infrastructure Funding
3.2a Pursue Grant applications and administration for infrastructure
projects
Carryover PW/CD/AS In progress Ongoing
FY 2025-27 City Council Goal's Work Plan
ATTACHMENT 2
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Goal Strategy Task/Action Carryover Action or
New
Responsible
Department Anticipated to Start Completion Target
FY 2025-27 City Council Goal's Work Plan
4.1 Economic Development Tasks 4.1a Retail Market Analysis Carryover CD 4Q FY 2024-25 1Q FY 2025-26
4.1b Market Demand Studies Carryover CD 4Q FY 2024-25 1Q FY 2025-26
4.2 General Plan Elements 4.2a Land and Safety Analysis Carryover CD 3Q FY 2023-24 2Q FY 2025-26
4.2b Administrative Draft Carryover CD
4.3 EIR 4.3a Complete draft EIR Carryover CD 1Q FY 2025-26 3Q FY 2025-26
4.3b Complete final EIR Carryover CD 3Q FY 2024-25 4Q FY 2025-26
4.4 Code Update 4.4a Kick off code update Carryover CD/LIS
4.4b Bring code changes to Planning Commission for approval Carryover CD 3Q FY 2025-26 3Q FY 2025-26
4.4c Bring draft Ordinance of code revision update to Council Carryover CD 4Q FY 2025-26 4Q FY 2025-26
4.5 Climate Action Plan 4.5a Kick off CAP and research Carryover CD 1Q FY 2025-26 4Q FY 2025-26
4.5b Admin Draft Carryover CD 4Q FY 2025-26 2Q FY 2026-27
4.5c Final CAP Carryover CD 2Q FY 2026-27 3Q FY 2026-27
5.1 Scope of Work and RFP 5.1a Define scope, research other communities New CD 4Q FY 2024-25 1Q FY 2025-26
5.2 Kick Off and Public Outreach 5.2a Kick Off New CD 1Q FY 2025-26 1Q FY 2025-26
5.2b Public Outreach New CD Ongoing Ongoing
5.3 CEQA 5.3a Environmental Review New CD 2Q FY 2025-26 3Q FY 2025-26
5.4 Plan Draft 5.4a Administrative Draft Plan New CD 3Q FY 2025-26 4Q FY 2025-26
5.5 Final Draft and Hearings 5.5a Final Draft New CD 4Q FY 2025-26 1Q FY 2026-27
5.5b Planning Commission Hearings New CD 1Q FY 2026-27 2Q FY 2026-27
5.5c City Council Hearings New CD 2Q FY 2026-27 2Q FY 2026-27
CMO
AS
LIS
PD
PW
Rec
Fire
CD
Legislative and Information Services
Key
Complete General Plan
Update
East Grand Avenue
Corridor Redevelopment
(Halcyon Road to Elm
Street)
Community Development
Five Cities Fire Authority
Recreation Services
Public Works
Police Department
City Manager's Office
Administrative Services
ATTACHMENT 2
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