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1. Why is Measure F-20 on the November 2020 ballot?

On Monday, July 20, 2020, the Grover Beach City Council unanimously adopted a resolution calling for the placement of a 1.0% Transaction and Use Tax (Sales Tax) on the November 2020 ballot. This will let voters decide whether to invest additional funding in projects and services the community said were important in the "2019 Grover Beach Community Priorities Survey." This includes major street repairs and sidewalk improvements, business support and public safety services that are currently underfunded.  

2. What are some of the financial challenges facing Grover Beach?

The proposed budget for FY 2020-21 reflects $800,000 in decreased revenue due to COVID-19: approximately 6% of General Fund revenues. In response to this challenge, the City took action to ensure the City’s financial position, including: starting a hiring review before filling vacant positions, reducing nonessential costs and freezing travel expenses, delaying one-time infrastructure improvements, and putting other items on hold.

While the City’s finances are currently stable for FY 2020-21 with a balanced budget, there are significant long-term challenges to address. We have not yet seen the full economic impacts of the COVID-19 pandemic, and we are also trying to address unfunded needs, including: major street repair projects and sidewalk improvements, business support and assistance, and fire, emergency medical and neighborhood policing services.

3. What may happen if Measure F-20 doesn’t pass?

Without the revenue that Measure F-20 would provide, the City would likely be unable to address identified unmet community needs/priorities that the public has said are important. These include major street repair that is not funded by Measure K-14 funds, sidewalk improvements, essential public safety services, and business and employment opportunities for residents. 

4. How will Measure F-20 appear on the November 2020 ballot?

“CITY OF GROVER BEACH MEASURE F-20. To provide funding for repairing and maintaining streets and sidewalks, supporting local businesses through recovery from the COVID-19 pandemic, maintaining essential 9-1-1 emergency medical and fire services, property crime and youth violence prevention, and neighborhood policing services, and other general city services; shall the City of Grover Beach enact a 1% Transaction and Use Tax (Sales Tax) providing $1,800,000 annually to the general fund unless repealed by voters with public oversight and all funds staying in Grover Beach?”

5. Is Measure F-20 a general tax or a special tax?

Measure F-20 is a general tax. It proposes a 1.0% (or one-cent) transactions and use tax, commonly known as a sales tax. The revenue from this sales tax would be deposited into the City’s General Fund--none of it would go to the County or State. The revenue from this sales tax could be used for any valid general municipal purpose. As a general tax, Measure F-20 will require approval by a simple majority ("50 percent plus one") of those voting on the measure.

6. How will Measure F-20 impact me?

The 1.0% sales tax applies only to goods and services within Grover Beach, such as bars, restaurants, gasoline and retail stores like clothing stores. It does not apply to most groceries or the services of a doctor, dentist or attorney. Read this resource from The California Department of Tax and Fee Administration (CDTFA) for full details about sales tax exemptions and exclusions.

It is estimated that the average cost per household could be $16 per month and that visitors to Grover Beach could generate approximately 40% of the revenue. The new sales tax would begin on April 1, 2021 for a partial-year implementation in FY 2020-21 and full implementation in FY 2021-22.

7. Will there be any safeguards in place to ensure Measure F-20 revenues are appropriately spent?

Yes. Measure F-20 requires public oversight through a citizen oversight committee. Additionally, the funds would be subject to an independent audit, ensuring full accountability and transparency.

8. How is the revenue estimate calculated?

The revenue estimate of $1.8 million is based on historical data using FY 2018-19 revenues generated with the City’s 0.5% sales tax approved in 2006. Doubling the $900,000 revenue generation for the 0.5% sales tax leads to the $1.8 million estimate for the 1% Measure F-20 sales tax. The estimate of sales tax revenue generated by visitors is based on an analysis using data points such as the number of households, household income, estimated taxable purchases, and actual sales tax revenue in the city to come up with an estimate of how much residents contribute (60%) and visitors contribute (40%).

9. Is Measure F-20 intended to address budget shortfalls related to fiscal impacts of COVID-19?

The City of Grover Beach budget for FY 2020-21 is balanced without a budget shortfall despite revenue losses from the COVID-19 pandemic. Thus, Measure F-20 is not intended to address COVID-related budget shortfalls, though it could provide additional assistance for local businesses impacted by the COVID-19 pandemic. Measure F-20 could help address long-standing community needs not presently covered by the City’s General Fund budget, such as major street repairs, sidewalk improvements and public safety services that are currently underfunded.

10. Why does the City need additional funding for street repairs? Doesn't Measure K-14 cover these projects?

Measure K-14 was approved by voters in 2014 to fund street rehabilitation and repair. The focus of Measure K-14 was repairing local residential streets which is underway with sufficient funding from Measure K-14 to repair these streets throughout the city.  However, Measure K-14 funding will not cover repairs of major city streets that are regional in nature with high traffic volumes such as West Grand Avenue, Oak Park Boulevard, and 4th Street.  The City estimates a total funding need over $10 million in repairing these major streets of significant size throughout the city. In addition, Measure K-14 funds do not provide funding for ongoing maintenance of streets as additional funding will be needed for ongoing maintenance of the local streets repaired under Measure K-14.

For additional information on the City’s current budget, you can review and download the FY 2020-21 Adopted Budget.

11. What would Measure F-20 funds address that our cannabis tax does not?

The City’s cannabis tax is a new revenue that began in 2018 once the first cannabis businesses opened. It is estimated to generate $1.5 million this fiscal year (FY 2020-21). Because it is a new revenue source, and given uncertainties in the statewide cannabis market, the City has been cautious with these revenues to focus on one-time uses and sufficient reserves rather than significantly expanding General Fund costs to meet community needs. The City has made some initial investments with the cannabis tax revenue, including increasing the City’s funding for fire and emergency medical services by over $500,000 annually over the past two years. This allowed the conversion of temporary reserve firefighters to permanent positions given increased service demands. Other initial investments include partial funding for adding a Police Sergeant position and adding funding increases for maintaining parks and City facilities. The cannabis tax revenues have also helped the City avoid budget shortfalls and service reductions with revenue losses due to COVID-19. However, the cannabis tax revenues do not provide funding to address the long-term community needs identified by the public given the scale of these needs.

For additional information on the City’s current budget, you can review and download the FY 2020-21 Adopted Budget.

12. Can’t property tax revenues cover unmet community needs?

Property tax is the largest (39%) and most stable source of revenue for the City’s General Fund. Property tax revenue is driven by changes in assessed value as determined by the San Luis Obispo County Assessor’s Office. While the FY 2020-21 budget assumes a growth rate of 5% in property tax revenue, due to the unknown short and long-term impacts of COVID-19, assessed property value and the corresponding property tax revenue could decrease in the following year(s). As part of the General Fund, these revenues are used for important City services, projects and programs, including policing and public safety, community development and parks and recreation programs.

For additional information on the City’s current budget, you can review and download the FY 2020-21 Adopted Budget.

13. What are transient occupancy tax (TOT) revenues being used for?

The transient occupancy tax (TOT) is largely paid for by visitors to the Grover Beach community. Due to the passage of Measure L-18 in November 2018, along with steady growth in TOT, revenue for FY 2019 increased by 16.7%. However, due to COVID-19 and the related impact on the tourism industry, TOT is projected to see a decrease in the last quarter of FY 2019-20 and the first two quarters of FY 2020-21. Because of this, the original estimates for FY 2020-21 have been reduced by $200,000. The tourism industry has been one of the hardest-hit sectors nationwide by the current economic downturn; it is unclear when it will recover and become a regular or reliable source of revenue. While the TOT is a comparatively smaller General Fund revenue source (5%), it is also used to help fund core city services and programs, such as infrastructure projects and the City’s contract with the Five Cities Fire Authority for fire protection and suppression services.

For additional information on the City’s current budget, you can review and download the FY 2020-21 Adopted Budget.

14. What could Measure F-20 help fund?

Measure F-20, if passed, could help Grover Beach move forward with addressing community needs that are currently not funded or are underfunded due to the City’s current budget constraints. These include:

• Repairing, maintaining and improving major city streets that are regional in nature with high traffic volumes -- amounting to approximately $10 million -- such as West Grand Avenue, South Oak Park Boulevard and North 4th Street that are not funded by Measure K-14 funds.
• Making the City more pedestrian-friendly and accessible through sidewalk improvements and additions. These would help with traffic congestion, improve air quality, and provide healthier and safer ways for students to get to and from school.
• Assisting local businesses that are weathering the hardships brought about by the COVID-19 pandemic through programs such as microgrants.
• Encouraging economic development in Grover Beach to help businesses be successful and expand local employment opportunities, which could include continuing to partner with the South County Chambers of Commerce to amplify these efforts
• Increasing the number of sworn police officers to better meet the volume of service calls received and allow time for proactive community outreach work to resolve issues before they become problems.
• Securing additional staffing and equipment to ensure a well-functioning fire and emergency medical services operation.
  
  

15. How is the City informing the Grover Beach community about Measure F-20?

Due to the fact that this is a national election year, local measures often do not make headlines or gain much traction with the media. Therefore, in an effort to encourage a well-informed public, the City is taking additional steps to ensure all Grover Beach residents have access to information about Measure F-20 as a tax measure is an important community decision. This includes website resources (as seen here), an educational video, and regular social media posts to link residents with these resources. To accommodate those individuals who may not be active online, residents will also receive a mailer at the beginning of October with similar information. Residents are encouraged to ask questions; the FAQ section on the webpage will be updated on a regular basis.