SLO Tribune accuses Grover Beach candidate of fraud

November 2, 2024

By KAREN VELIE

Less than a week before the election, the SLO Tribune published both a news article and an editorial accusing Grover Beach mayoral candidate Debbie Peterson of fraud alleging she illicitly applied for discounts on her water bill. The accusation appears to be based on the publication’s failure to understand the difference between household and business income.

There are three people running for the Grover Beach mayor seat: Peterson, Robert Robert and Kassie Dee. The Tribune endorsed Dee while trashing Peterson for writing a book on local corruption – “The Happiest Corruption; Sleaze, Lies, & Suicide in a California Beach Town.”

Tribune reporter Joan Lynch writes that Peterson “appears to have received assistance paying her water and sewer bills despite making more income than is eligible to receive that benefit.” Lynch noted that Peterson has “multiple streams of income,” before estimating Peterson’s gross income.

The discount programs Peterson applied for are based on gross household income or being on other state programs, not gross business income.

Peterson has a vacation rental below her home. In addition, she owns a condo in Hawaii she also rents out as a vacation rental.

In determining Peterson’s vacation rental income, Lynch wrote he reverse calculated using Grover Beach’s 12% transient occupancy tax, though he failed to note San Luis Obispo County tacks on an additional 1.5%. In addition, Lynch did not include moneys paid to VRBO, property managers and cleaners.

As for her real estate business, Lynch did not include operating costs while inflating the amount a broker typically makes on a property. Peterson provided CalCoastNews her business tax return, which rebuts Lynch’s claims.