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Oroville posts $555,000 FY2025 deficit; pension-stabilization trust holds $5 million
Summary
Finance staff reported a $555,000 combined fund deficit for the year ending June 30, 2025, with a general-fund shortfall near $70,000 and a $5 million pension-stabilization trust; council discussed long-term CalPERS exposure and fund-balance classifications.
Finance Director Ruth presented the city’s fiscal-year 2025 results on March 17, reporting a combined deficit of $555,000 across the general fund, district tax fund and a newly included pension-stabilization fund.
Ruth said the general fund incurred a deficit of roughly $70,000, the district tax fund showed a $796,000 deficit (reflecting planned draws on fund balance for capital/expenditure items), and the pension-stabilization trust contains $5,000,000. The pension-stabilization fund, she said, is intended to smooth future CalPERS liability spikes though it does not fully cover the city's estimated unfunded liability.
Ruth introduced a new handout on fund-balance classifications (nonspendable, restricted, committed, assigned, unassigned) to clarify which balances are already committed or restricted. She said the city’s total fund balance had grown historically (citing prior-year figures) but cautioned long-term pressures from CalPERS and deferred maintenance: a streets/road study indicated an estimated $55 million backlog to fully address road needs.
Council members asked about investment custodians, termination costs for CalPERS (staff cited a roughly $80 million termination cost if the city left the system), and tracking of interest earnings on restricted funds; staff offered to provide a fuller investment update and noted large liabilities remain an ongoing budget risk.
The presentation was informational; no budget action was taken at this meeting.
