Roseville reports $15.9M FY‑24 surplus; council approves $15.9M one‑time budget adjustments, staff warns of possible $4–6M sales‑tax shortfall

The Roseville City Council on Feb. 5 accepted the fiscal‑year 2023–24 year‑end financial report and approved budget amendments that appropriate a $15.9 million general‑fund surplus for a set of one‑time projects and reserves.

Nancy Rothfelsberger, the city’s budget manager, told the council the general fund ended FY‑24 with a $15.9 million surplus composed of $3.3 million in revenues above budget and $12.6 million in expenditure savings; the expenditure savings figure includes a deferred additional discretionary payment (ADP) to CalPERS of $4.6 million. Rothfelsberger said the city will monitor the project encumbrances and that the savings include salary savings from vacancies and lower spending on services and supplies.

Assistant Finance Director Scott Pettengill outlined the recommended uses of the surplus the council approved. Highlights of the council‑approved adjustments include roughly $4.0 million for parks, recreation and library projects (including $150,000 for Gibson Park courts and $3.0 million for a West Side Maintenance Yard), $600,000 for youth‑facility upgrades, $250,000 for design of the Verden Street Town Square spray ground upgrade, $930,000 for police equipment (including $480,000 for body‑worn cameras), a $1.5 million transfer to the Fleet Replacement Fund, a $1.5 million transfer to the pension reserve trust, a $1.5 million transfer to the general fund capital reserve, and $1.8 million to the strategic improvement fund. The council approved the ordinance authorizing the amendments and declared it immediately effective as an appropriation measure.

Pettengill also presented the city’s FY‑25 first‑quarter revenue report and said sales tax remains the primary uncertainty. He reported that the city’s sales‑tax consultant projects a likely outcome that could leave Bradley‑Burns and Measure B sales tax collections roughly $6.0 million below the budgeted figure (Pettengill earlier noted $4.5 million for Bradley‑Burns and $1.5 million for Measure B as the consultant’s central estimates). Property tax revenues were forecast to exceed estimates by about $1.3 million. Staff recommended continuing to defer the previously approved $4.6 million additional discretionary payment to CalPERS until later in the year while staff monitors sales‑tax collections and expenditure savings.

Council members asked clarifying questions about the list of recommended projects and the fleet replacement shortfall. Staff said the fleet shortfall stems primarily from rising vehicle costs, with fire vehicles being a large component of the projected need. Pettengill said first‑quarter general fund collections were at about 7% of the amended revenue budget (typical for timing) and stressed staff will update the council with a second‑quarter report in May.

Votes at a glance: council voted unanimously to accept the FY‑24 year‑end report and adopt the ordinance authorizing FY‑24/25 budget amendments (roll call: Vice Mayor Albert: Yes; Council member Howde Shell: Yes; Council member Ricucci: Yes; Mayor Brunosconi: Yes).