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Council authorizes $1.64M in year‑end transfers to meet fund‑balance policy
Summary
Finance staff recommended and the council unanimously approved transfers totaling approximately $1.64 million to bring the general fund to a 35% reserve target and the Communications and License Center funds to their low targets; transfers will draw from License Center surplus, cash reserves and Parks & Recreation.
The Roseville City Council authorized year‑end accounting transfers on May 4 to bring several city funds into alignment with the city’s fund‑balance policy.
Finance director Sam Magaranu presented the analysis and recommended transfers after auditors completed the 2025 financial close. He said the general fund, without entries, would fall below the policy low target of 35% to about 29.66% — a shortfall Magaranu quantified as roughly $1.6 million. "Our general fund at the 2025, if we wouldn't do the transfer, will fall below its target low target of 35%. We're looking approximately 29.66%." he said.
Recommended transfers: Magaranu proposed using $637,643 from the License Center surplus, $926,008 from the cash reserves fund, and $40,978 from Parks & Recreation to bring the general fund to the 35% low target, and a separate $40,378 transfer to raise the Communications fund to its 10% low target. He explained that the license‑center and Parks & Recreation surpluses are above policy targets in the packet and that combining these transfers will leave some funds slightly below high targets but meet minimum policy levels.
Council questions and public input: Council members asked about timing and audit availability; staff committed to provide the audit report at the May 11 meeting and to email copies earlier. A public commenter urged caution about drawing down the License Center fund because those dollars can reduce future borrowing needs.
Vote and follow‑up: Council approved the transfers unanimously. Staff will record the 2025 journal entries and continue to monitor fund balances; council members asked staff and the Planning/Finance teams to consider longer‑term policy clarifications in future budget cycles.
