Roseville council approves $47.42 million fiscal 2025–26 budget; reallocates $30,000 in CDBG funds

The Roseville City Council voted April 22 to adopt the city’s fiscal year 2025–26 budget and to approve the Community Development Block Grant (CDBG) budget that accompanies it. The council moved and carried formal resolutions approving the CDBG allocations and the $47,420,000 general fund budget.

The city presented the proposed budget as a balanced spending plan. Sean Walters, city finance staff, told the council the general fund is budgeted at $47,420,000 for 2025–26 and that total general fund revenue is up roughly $1.5 million (about 3.3 percent) from the previous year. Walters said property-tax revenue remains the largest single source of general-fund income and cited assessed-value gains that have pushed property-tax receipts higher in recent years.

City staff stressed the budget is conservative and includes an $800,000 surplus for the coming year. Walters said the city’s working fund balance is roughly $16 million at the end of the current fiscal year and is forecast at $16.7 million next year, about 35 percent of annual expenditures by his estimate. He attributed the city’s improved position to the 2010–2020 recovery in assessed value, a reallocation of retiree costs under a PA 345 plan and one-time federal grants in recent years.

On the CDBG budget, community development staff Mr. Gramechia told the council the only substantive change from the draft was removal of the city’s proposed in-house minor home repair program. According to Mr. Gramechia, the county could not administer that program because of federal regulatory requirements, so staff moved the $30,000 originally set aside for minor home repair into two items: $20,000 for city-hall restroom improvements and $10,000 for the city’s code-enforcement program. Gramechia said subrecipients were funded at the full amounts they requested and that the CDBG spending plan is based on a conservative estimate of a $545,000 HUD allocation.

Council members asked for clarification about the assumptions behind long-range projections. Walters said future downward pressure on the fund balance could come from inflation, contract wage increases and a leveling of property-tax growth; he said those variables will require monitoring in the coming years.

Votes at a glance: - Resolution adopting the Community Development Block Grant (CDBG) budget for program year 07/01/2025–06/30/2026: motion by Mayor Pro Tem Haass, supported by Councilman Leticia; outcome: motion carried (council recorded “Aye”; vote tally not specified). The adopted CDBG plan removes the minor home repair program and reallocates $30,000 as described above. - Resolution adopting the City of Roseville fiscal year 07/01/2025–06/30/2026 budget: motion by Mayor Pro Tem Haass, supported by Councilman Shoemaker; outcome: motion carried (council recorded “Aye”; vote tally not specified). The adopted general fund budget equals $47,420,000 and includes the surplus described above.

Small procedural votes recorded during the meeting included motions to excuse two absent council members and to approve the consent agenda; those motions were moved, supported and carried on voice votes. City staff said HUD had not yet issued a final CDBG allocation and that the budget allows a $25,000 variance either way in the grant amount.

The budget-adoption resolution takes effect per standard city procedures; no separate effective date was specified during the meeting. City staff said they will return to council if actual HUD funding deviates substantially from the budgeted amount.

Ending The council completed adoption of the two resolutions during the April 22 meeting after brief public hearings and staff presentations. City finance staff and community development staff said they will make only minor line-item adjustments if HUD’s final allocation differs from the projection.