Measure B revenues slightly above projection as Roseville reports $15.9 million general fund surplus; CalPERS payment deferred pending 2025 results

City of Roseville staff reported to the Local Sales Tax Citizens Oversight Committee on Feb. 26 that the general fund closed fiscal year 2023–24 with a $15.9 million surplus made up of $3.3 million in revenues above budget and $12.6 million in expenditure savings.

Scott Pettingell, finance director, summarized key revenue and expenditure results: Bradley Burns sales tax underperformed the budget with an approximate shortfall of $2.6 million, while Measure B local sales tax receipts exceeded the budget by about $200,000. Property tax and development‑related revenues came in stronger than expected and helped offset the sales tax shortfall. Pettingell said, “Overall, our general fund ended fiscal year 24 with a $15,900,000 surplus.”

City staff reported that much of the expenditure savings came from salary savings tied to vacant positions and deferred material and services spending; about $12.6 million in expenditure savings included encumbrances planned for the following year. The report shows staffing increased citywide by roughly 5% (about 36 positions) since fiscal year 2019. Departments with notable increases included fire (to staff a new station), parks, recreation and libraries (added operations and cultural‑arts staff), and administrative departments (finance, HR, communications).

The draft year‑end spending plan and transfers included several one‑time allocations and recommended moves: $4.0 million for parks/recreation/library projects (including $150,000 for Gibson Park courts improvements and $3.0 million for a West Side maintenance yard); $930,000 for police equipment (about $480,000 for body‑worn cameras and $450,000 for ballistic vests and related gear); a $1.5 million transfer to the fleet replacement fund; and transfers to reserves and trusts (a planned $4.6 million additional discretionary CalPERS payment that staff recommended deferring pending FY25 results; $1.5 million to the Section 115 pension trust; $1.5 million to the general fund capital reserve; and $1.8 million to the strategic improvement fund). Staff said the pension trust balance is forecast at about $22.5 million after the transfers.

Dennis Kaufman, assistant city manager and chief financial officer, explained that the “other expenditures” red indicator in the draft scorecard primarily reflected a one‑time $10 million transfer to the general fund capital reserve in fiscal year 2023 that was not repeated in fiscal year 2024. Kaufman and Pettingell also explained that a red indicator for police staffing resulted from a temporary administrative reclassification in which an interim authorized position was removed after internal recruitment; they said this did not reflect an ongoing reduction in officer staffing.

On pensions, staff noted the city’s CalPERS funded ratio is roughly 65 percent based on the most recent actuarial valuation and the total unfunded liability is about $56 million. City council has prioritized discretionary payments and the Section 115 trust as tools to reduce long‑term pension costs; staff reiterated that the planned $4.6 million discretionary payment was budgeted for FY24 but deferred because of softened sales tax results and current‑year revenue uncertainty. Kaufman said staff continues to monitor revenue monthly and will revisit the payment if FY25 results improve.

Committee members asked clarifying questions about Measure B’s permanence (staff said there is no expiration date), the application of the tax to certain auto‑mall transactions and out‑of‑state sellers, and recent staffing additions in police and parks. No committee action was required; the item was informational and staff will supply materials to the committee to support its draft report to council.