Roseville
Annual Per Capita Sales Tax
Adjusted for Inflation
(Constant 2017 $)
City of Roseville
News
• Economic Activity: Real Gross Domestic Product (GDP) grew at a seasonally adjusted annualized rate of 6.5% in the second quarter of 2021. Real GDP in Q2 2021 surpassed its Q4 2019 pre-pandemic peak by 0.8%. (Finance Bulletin, August 2021)
• Employment: The U.S. unemployment rate fell by 0.7% to 5.2% in August of 2021 compared to July of 2021.
Total U.S. nonfarm payroll employment increased by 235,000 (0.2%) in August compared to July of 2021.
California's unemployment rate remained unchanged at June’s revised rate of 7.6% forthe month of July 2021. California's civilian employment increased by 56,000 (0.3%) in July of 2021 compared to June of 2021. (Finance Bulletin, August 2021 & BLS)
• Personal Income: U.S. personal income increased by 2.7% in the Second quarter of 2021, compared to same quarter previous year. This increase was after a 5.2% growth in the first quarter of 2021. (BEA) 2017Q2 $383 2018Q2 $375 2019Q2 $368 2020Q2 $333 2021Q2 $373 $43 $40 $46 $52 $69$2 $2 $2 $2
$2$40 $38 $42 $35
$35$20 $21 $19 $19
$20
$123 $119 $114 $101
$117
$43 $44 $42
$38
$38
$113 $112 $104
$86
$91
General Retail
Food Products
Transportation
Construction
Business To Business
Miscellaneous
County Pool
(Cash Basis)
ORDINANCE NO. 6447
AN ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2021-22 BUDGET AND
DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY COUNCIL OF THE CITY OF ROSEVILLE DOES ORDAIN AS FOLLOWS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended by transferring an additional appropriation to and from the activities indicated below:
Year-End Budget Adjustments, as listed on attached list.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three conspicuous locations in the City and shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City of Roseville, this day of , 20 , by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
1/12/20229:52 PM
REQUEST FOR BUDGET ADJUSTMENT
FISCAL YEAR: FY2021-22
REQUESTER NAME & TITLE: Scott Pettingell, Budget Manager PREPARER NAME & TITLE: Scott Pettingell, Budget Manager COUNCIL DATE (if applicable): 2/2/2021 DEPARTMENT/DIVISION: Finance ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
1001 5411 84001 500224 3,740,000
1001 5301 84001 500224 440,000
1001 5080 84001 500224 220,000
1001 5516 48040 700,000
1001 5670 10001 300,000
5,400,000
REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
4005 4254 62601 700,000
700,000
4,700,000
FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
1001 3601 0 (5,400,000)
4005 3601 0 700,000
(4,700,000)
Justification for Budget Adjustment:
REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE
POSTED BY DATE
ACCOUNT STRING
TOTAL
Increase Fleet Replacement Fund revenue budget for purchase of tractor drawn ariel fire truck
DESCRIPTION
REQUIRED APPROVALS:
BUDGET DEPARTMENT USE ONLY:
The City finished Fiscal Year (FY) 2020-21 with a General Fund budget surplus of $28.5 million. Staff recommends appropriating $5.4 million of this funding for the following projects:
-Street Resurfacing: Appropriate $4.4 million in General Funds in a multi-year project (500224 - 2021 General Fund Arterial Resurfacing Project) to resurface portions of Cirby Way, Old Auburn, Rocky Ridge, Douglas, and Pleasant Grove.
-Tractor Drawn Aerial Fire Truck: The City has accumulated approximately $1 million of the $1.7 million needed to replace a tractor drawn aerial fire truck. Staff recommends that the City Council approve the appropriation of $700,000 in General Funds to fully fund the replacement of this fire apparatus. This recommended budget adjustment also includes the authority to move the General Funds to the Fleet Replacement Fund to purchase the replacement vehicle in FY2022-23. - General Fund Contingency: During the current fiscal year, $300,000 in General Fund contingency funds were used to complete the Roseville Aquatics Center slide and water play structure replacement project. Staff recommends replenishing the General Fund contingency by $300,000 to address any unanticipated requirements during the remainder of the fiscal year.
TOTAL
TOTAL
ACCOUNT STRING DESCRIPTION
Establish repair and maintenance expenditure budget for 2021 General Fund Arterial Resurfacing Project
Decrease in General Fund available resources
Increase in Fleet Replacement available resources
NET ADJUSTMENT
ACCOUNT STRING DESCRIPTION
Replenish General Fund Contingency
Increase Fire Department General Fund expenditure budget to fund the replacement of a tractor drawn ariel fire truck (07-438) Establish secondary labor expenditure budget for 2021 General Fund Arterial Resurfacing Project
Establish professional services expenditure budget for 2021 General Fund Arterial Resurfacing Project
COUNCIL COMMUNICATION
CC #:
1901
File #:
0200
Title:
Fiscal Year 2021-22 Budget Update and Fiscal Year 2022-23 Budget Development Schedule
Contact:
Scott Pettingell 916-746-1306 [email protected]
Meeting Date: 2/2/2022
Item #: 8.2.
RECOMMENDATION TO COUNCIL
Staff recommends City Council receive a presentation regarding an update on the FY2021-22 Budget and the budget development schedule for the FY2022-23 budget.
BACKGROUND
FY2021-22 Budget Update
General Fund
Staff continues to monitor the economic impacts of the COVID-19 pandemic on General Fund revenues and expenditures. There is still uncertainty about the impacts of the COVID-19 pandemic on the local economy, including supply chain disruptions, labor shortages and inflation.
Staff monitors General Fund labor, material, service, and supply expenditures to ensure they align with the approved budget. To date, staff has not identified any notable expenditure variances. A comprehensive FY2021-22 mid-year financial report is scheduled for the spring.
Following is an update on significant General Fund revenues to date:
Sales Tax:
The City’s sales tax consultants have recently updated their projection for the City’s sales tax revenue for the current year. Their updated forecast assumes a continued improvement in the local economy. However, they also acknowledge the uncertainty surrounding the pandemic and its economic impacts. The updated forecast reflects $68 million in Bradley-Burns sales tax revenue in the current year compared to the adopted budget estimate of $58.5 million.
For the local Measure B sales tax, the updated forecast reflects $26 million in the current year compared to the adopted budget estimate of $21 million. The pandemic has not affected these revenue streams to the extent initially projected when the budget estimates were established last spring.
Strong general retail, vehicle, and internet sales contribute to these positive sales tax results.
Property Tax:
The City receives updates from the Placer County Tax Assessor about the growth in the City’s property tax roll, and the City’s property tax consultant has updated their projections.
The projections indicate that actual property tax revenue will end the year at approximately $44.8 million compared to the budget estimate of $42.7 million.
Transient Occupancy Tax:
To date, the City has received TOT for July through November, totaling approximately $2.1 million. The City budgeted for $2.6 million in the FY2021-22 budget.
Hotel occupancy continues to trend higher than conservatively estimated in the adopted budget.
Labor Agreements
Resources were budgeted in the FY2021-22 General Fund contingency for the costs associated with approved and pending labor agreements. When the final labor agreement is brought forward to City Council, staff will recommend a budget adjustment to fully fund the cost of the new agreements.
American Rescue Plan
The City received $8.8 million in American Rescue Plan funds in May 2021 and will receive an additional $8.8 million in May 2022. According to adopted City Council policy, the City has deposited these funds in the Federal Stimulus Reserve Fund. Staff is reviewing eligible one-time expenditures from these funds and will return to City Council with recommendations at a later date.
Electric Utility Fund
The FY2021-22 budget assumed residential and large commercial customers recovered from the effects of COVID-19. Small commercial customers, the groups most impacted by the COVID-19 related restrictions, were assumed to experience a slower recovery. Through December 2021, total revenue is up almost 7.0% above estimates, primarily due to increased customer usage associated with warmer temperatures and the implementation of the hydroelectric surcharge related to state-wide drought impacts. To begin the fiscal year, past due bills exceeding sixty-one days totaled $1.8 million, more than three times normal levels. In close coordination with commercial and residential customers, Electric staff resumed utility service disconnections for non-payment in June 2021.
Additionally, Roseville was allocated approximately $0.5 million under the California Department of Community Services and Development California Arrearage Payment Program (“CAPP”) to assist customer accounts that have fallen behind from May 4, 2020, through June 15, 2021.
Roseville received this funding in December 2021. Collectively, the resumption of utility service disconnections and applying the CAPP funds reduced the past due bills exceeding sixty-one days to less than $0.6 million, returning to pre-pandemic levels.
Environmental Utilities Funds
The Environmental Utilities (EU) Department has continued to see higher revenues and lower expenses due to COVID-19 and high levels of development activity. EU was also allocated approximately $50,000 under the California Water and Wastewater Arrearage Payment Program (CWWAPP) to assist customer accounts that fell behind from May 4, 2019, through June 15, 2021. EU allocated funds to qualifying accounts and will return approximately $14,000 to CWWAPP. Between the efforts of Utility Billing to collect outstanding receivables, resuming utility service disconnections, and the application of CWWAPP funds, past due bills > 60 days have been reduced by approximately 56% and currently equate to about .25% of FY2020-21 utility service revenues.
Transit/Transportation Funds
The Transportation Fund will end FY2021-22 within the budgeted estimates. The City Council approved a budget adjustment for the Transit Fund on January 19, 2022, adjusting revenue and expenditure budgets to reflect revised estimates due to the pandemic, including an increase in Federal Transit Administration (FTA) funds due to the American Rescue Plan Act (ARPA) of 2021. The Transit Fund will end FY2021-22 within the budgeted estimates with these changes.
Youth Development Fund
The Youth Development Fund ended FY2020-21 with a deficit of approximately $2.6 million. Staff are exploring potential resources available to offset this deficit, including federal stimulus funding, and will return to City Council with a recommended plan at a later date.
In FY2021-22, Roseville schools resumed normal classroom learning. Adventure Club program enrollments remain significantly reduced due to parents working from home or deciding not to return to work entirely. However, there continue to be many families who need childcare services.
While program attendance has declined at many school sites, other sites have returned to pre- pandemic numbers. As the school year progresses, staff will continue to promote Adventure Club programs to fill participant vacancies, especially as parents return to the workforce.
The program is currently operating at 65% of pre-pandemic enrollment and operates at a deficit in FY2021-22. Due to the uncertainty of when parents will return to work (requiring Adventure Club services and increasing program enrollment) and whether guidelines may change, projecting this fiscal year’s ending deficit balance is difficult at this time. Staff will continue to update the City Council on the pandemic’s impact on the Youth Development Fund in future quarterly reports.
Fire Facilities Fee, Public Facilities Fee and Strategic Improvement Funds
When developing the FY2020-21 budget, staff conservatively established revenue estimates in these funds based on the anticipated impacts of COVID-19 on development. These estimates are generally based on a multi-year trend analysis of forecasted single-family, multi-family, commercial development, and prior-year revenue collections. To date, revenues in these funds are trending above estimates with Fire Facilities at 76%, Public Facilities at 83%, and Strategic Improvement at 72% due to stronger than anticipated development activity.
FY2022-23 Budget Development Calendar
The following table provides a listing of key dates and fiscal presentations scheduled to take place as part of the FY2022-23 budget development:
Date
Item
February 2
Fiscal Year (FY) 2021-22 Budget Update and FY2022-23 Budget Development Schedule presentation
American Rescue Plan Act Update
Long-term Liabilities Update - pension, other postemployment benefits (OPEB), and capital improvement program rehabilitation
February 22 -23
Annual City Council Priorities Workshop
March 18
Local sales tax oversight committee report presentation
March 28 – 31
City Manager budget review meetings
April 20
Proposed Capital Improvement Program (CIP) presentation
Utilities budget update presentation
May 4
Financial policies presentation
May 20
Proposed budget delivered to City Council
May 31
City Council budget workshop
June 15
Budget adoption
FISCAL IMPACT
There is no fiscal impact associated with this presentation.
ENVIRONMENTAL REVIEW
No applicable.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world
Respectfully Submitted,
Scott Pettingell, Budget Manager
Dennis Kauffman, Assistant City Manager/Chief Financial Officer
_____________________________
Dominick Casey, City Manager
COUNCIL COMMUNICATION
CC #:
1902
File #:
0600-04
Title:
Long-Term Liabilities Update - Pension, Other Postemployment Benefits and Capital Improvement Program Rehabilitation
Contact:
Dennis Kauffman 916-774-5315 [email protected]
Scott Pettingell 916-746-1306 [email protected]
Meeting Date: 2/2/2022
Item #: 8.3.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council receive a presentation on the City's long-term liabilities
including
pension, other postemployment benefits (OPEB) and capital improvement program rehabilitation.
BACKGROUND
Staff will provide the City Council with an update on the City's long-term liabilities including pension, other postemployment benefits (OPEB) and capital improvement program rehabilitation.
FISCAL IMPACT
Not applicable.
ENVIRONMENTAL REVIEW
Not applicable.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world
Respectfully Submitted,
Scott Pettingell, Budget Manager
Dennis Kauffman, Assistant City Manager/Chief Financial Officer
_____________________________
Dominick Casey, City Manager
COUNCIL COMMUNICATION
CC #:
1898
File #:
0300
Title:
The American Rescue Plan Act Update
Contact:
Dennis Kauffman 916-774-5315 [email protected]
Scott Pettingell 916-746-1306 [email protected]
Meeting Date: 2/2/2022
Item #: 8.4.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council receive a presentation regarding an update on the American Rescue Plan Act funding the City received.
BACKGROUND
Staff will provide the City Council with an update on the American Rescue Plan Act funding the City received.
FISCAL IMPACT
Not applicable.
ENVIRONMENTAL REVIEW
Not applicable.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world
Respectfully Submitted,
Scott Pettingell, Budget Manager
Dennis Kauffman, Assistant City Manager/Chief Financial Officer
_____________________________
Dominick Casey, City Manager