MINUTES
May 31, 2022
SPECIAL MEETING
CITY COUNCIL BUDGET WORKSHOP
4:00 p.m.
Council Chambers
311 Vernon Street
Roseville, California
www.roseville.ca.us/CORTV
1. CALL TO ORDER
Mayor Bernasconi called the meeting to order at 4:01 p.m.
2. ROLL CALL
Present: Vice Mayor Bruce Houdesheldt, Councilmember Scott Alvord, Councilmember Pauline Roccucci, Councilmember Tracy Mendonsa, Mayor Krista Bernasconi
3. PLEDGE OF ALLEGIANCE
Councilmember Mendonsa led the Pledge of Allegiance.
4. PUBLIC COMMENTS
Nick Bryant spoke on graffiti on City bus shelters.
5. SPECIAL REQUESTS/REPORTS/PRESENTATION
5.1. Budget Workshop
A.
Introduction
B.
Fiscal Overview
C.
Department Overviews:
Police
Fire
Parks, Recreation & Libraries
Development Services
Public Works
Economic Development
CONTACT:
Dennis Kauffman [email protected] 916-774-5319
A. Budget Workshop Introduction
City Manager Dominick Casey provided an overview of the budget to the City Council.
Extensive Process
February 2, 2022
FY2022-23 Budget Development Calendar
Long-term Pension and Other Postemployment Benefit Liabilities Updates
February 22-23, 2022
Council Goals Update Workshop
Council goals:
Maintain a safe and healthy community
Remain fiscally responsible in a changing world
Enhance economic vitality
Invest in well-planned infrastructure and growth
Support community engagement and advocacy
Deliver exceptional city services
Proposed budget aligns with Council strategic plan
March 28-31, 2022
City Manager budget review meetings
April 20, 2022
Utilities budget preview
Measure B Local Sales Tax Citizens' Oversight Committee Report to Council
May 4, 2022
Capital Improvement Projects budget preview
May 18, 2022
Financial policies adopted
May 20, 2022
Proposed FY2022-23 Budget released to City Council
May 31, 2022
Budget Workshop
Citywide budget presentation
Current fiscal position and trends
Department operating budgets
June 15, 2022
Council considers budget for adoption
Awareness
Budget-in-Brief
Website
E-newsletter
Social media
Roseville Coalition of Neighborhood Associations
Sun City Roseville
Roseville Chamber of Commerce
City employees
Purpose for Budget Workshop
Budget overview
Revenues
Expenditures
Staffing
General Fund budget overview
Revenues and Expenditures
Challenges
Five-Year Forecast
Operating department summaries
Council confirmation of recommendations included in the proposed budget:
Maintain service levels in a growing city
Address new state/federal mandates
Enhance service levels for Council strategic plan goals Maintain reserves, pay down obligations, and accelerate CIP Rehab.
Measure B Priorities
Maintain essential services
Maintain added priority services as we grow
Fully staff new police beat in West Roseville
Additional public safety staffing
Maintenance for citywide parks, allowing for construction to occur Fiscal health investments
Build and maintain Economic Stabilization Reserve Fund
Pay down retiree health liability (OPEB)
Pay down CalPERS pension obligation, after General Fund reserve targets are met
Allows the City to stabilize continuity of services into the future
FY2022-23 Budget Summary
Maintains fiscal responsibility
Aligns with mission and City Council strategic plan goals Lives within our means
Provides core services
Concerns
Uncertain impacts of inflation and interest rate hikes on the economy Limited room for long-term growth without new sources of revenue Limited resources available for new capital projects
Measure B Priorities
Maintain current priority service levels
Focus on high-priority new services
Build and maintain a stabilization reserve fund
Pay down long-term liabilities to build capacity
B. Fiscal Overview
Assistant City Manager/Chief Financial Officer Dennis Kauffman introduced Budget Manager Scott Pettingell.
Budget Manager Scott Pettingell made the presentation to the City Council.
Revenue by Fund Type - $788 Million
Enterprise Funds (Electric, EU, Transit) 56%
General Fund (Police, Fire, Parks, Libraries, Streets) $28% Other Funds (Special Districts, Development fees) 16%
Citywide Expenditures by Major Category
Salaries, Wages & Benefits 35%
Materials, Services & Supplies 31%
Annual & Capital Improvement Program 16%
Purchased Power & Supply 10%
Other 8%
Citywide Staffing Levels
New positions
City Attorney - 1
Development Services - 1
Electric - 3.5
Environmental Utilities - 6
Finance - 2
Fire - 1
Information Technology - 4
Police - 12
Parks, Recreation & Libraries - 7
Public Works - 5.5
Total 43
Five-Year Capital Improvement Program
Program Area FY2022-23 Five-Year CIP Parks, Recreation & Libraries $37,620,000 $87,060,000 Roseville Electric $20,486,000 $106,532,000 Waste Services $16,674,000 $16,674,000 Wastewater $12,038,000 $17,212,000 General Govt/IT $7,249,000 $7,249,000 Public Works $5,959,000 $111,942,000 Water $5,200,000 $46,650,000 Total $105,226,000 $393,319,000
General Fund: Revenue
Assumption: Local economy continues to grow but at a slower pace:
Bradley-Burns Sales Tax
13.8% recovery in FY2021-22
2.2% estimated modest growth in FY2022-23
$7.1 million for FY2022-23
Measure B Local Sales Tax
14.9% recovery in FY2021-22
28.1 million for FY2022-23
Property Tax
5.9% estimated growth rate
$64.4 million for FY2022-223
Portion goes back to County
FY2022-23 General Fund Operating Revenue ($211.4 million) Sales & Use Tax 35%
Measure B Sales Tax 13%
Property Tax 31%
Charges for Services 7%
Electric Franchise Fees 3%
Other Taxes 3%
Other 6%
Bradley-Burns Sales Tax by Category
Transportation 38%
General Retail 35%
Food Products 31%
Business to Business 10%
Construction 6%
Miscellaneous 1%
General Fund: Expenditures
Operating Expenditures - $212 million
Police 26%
Fire 20%
Parks, Recreation & Libraries 15%
General Government 6%
Development Services 5%
Public Works 5%
Other 23%
Discretionary Spending
Some General Fund revenue is collected for specific services provided and is not discretionary ($39 million total). Examples include:
Charges for services $13.5 million
Electric franchise fee $7.3 million
Licenses and permits $3.8 million
Some General Fund expenditures are contractual obligations, or are based on Council policy decisions ($22 million). Examples include:
Annexation Payments $9.9 million
Retiree Benefit Payments $5.6 million
General Fund Operating Budget $212 million
Less Revenue Offsets - $39 million
Less Non-Discretionary Spending - $22 million
Less Police & Fire - $77 million
Remaining discretionary funds $74 million
General Fund: Planning for the Future
General Fund Reserves
Stabilization Reserve Fund
Emergency Reserve Fund
General Fund Capital Reserve Fund
Pension Reserve Trust
CalPERS Additional Discretionary Payment
General Fund Reserves
Stabilization Reserve Fund $27 million
15% of General Fund operating expenditures
Purpose: address revenue shortfalls caused by an economic downturn $1.4 million added to reserve
Emergency Reserve Fund
10% of General Fund operating expenditures
Purpose: address unanticipated, nonrecurring expenditures during an emergency
$1.2 million added to reserve
General Fund Capital Reserve Fund
$10 million transfer to new Capital Reserve Fund to address:
Significant General Fund projects in the planning and design phase, including:
Roseville Sports Complex
Weber Park
Station 8
Construction cost increases due to inflation, supply chain disruption, labor shortages
Pension Reserve Trust
Pension funding policy updated to establish a pension trust Irrevocably committed for pension contributions/obligations Used as a rate stabilization fund to ease budgetary pressures resulting from significant spikes in employer contribution rates Established with an initial deposit and can contribute more in the future with one-time resources, e.g year-end surplus
$8 million recommended in proposed budget
$2 million from FY2020-21 year-end General Fund surplus $6 million with FY2022-23 General Fund resource
CalPERS Additional Discretionary Payments
City Council strategy to pay down pension liability after General Fund reserve levels are met
Most recent actuarial valuation
64% funded ratio
$415 million unfunded liability
$53 million annual cost in FY2022-23
Benefits of making ADP includes:
Pay down unfunded accrual liability
Increase funded status of the pension plan
Reduce future pension costs by $400,000=/- year for 20 year
General Fund Five-Year Forecast Assumptions
Factors included
Estimated labor costs based on new MOUs
Inflation slowing over the forecast
Underfunded obligations - pensions, POEB, CIP Rehab
Impacts from know state/federal mandates
Billboard revenue
Factors not included
Labor market adjustments in new MOUs
Extended period of high inflation
New federal and state regulations
New revenue sources
General Fund Operating Expenditures Forecast
Starting at $212 million and growing to over $250 million over the next six years. The dip in FY24 is due to one-time expenses/funding of reserves in FY23 ($10M to GF Capital Reserve Fund and $8M to Pension Reserve Trust Fund plus $6M ADP) The assumptions for expenditure growth include: FY24: assumes 15 new positions including 9 positions for Fire Department, and six for FY25-FY28: six new positions funded by the General Fund to maintain City service levels while keeping up with growth.
No public comment received.
Police Department Overview:
Captain Kelby Newton and Budget Analyst Mark Peinado made the presentation to the City Council.
Divisions
As part of the department's Strategic Planning process, the Police Department moved from three divisions to four this year:
Operations - Patrol
Investigative Services - Investigations
Community Services - Social Services, School Resource Officers, Traffic Professional Services - Communications, Records & Property
Operating Expenditures Budget
Patrol 45%
Administration 14%
Investigations 11%
Communications 8%
Records-Property-CSI 6%
Vehicles 5%
Social Services Unit 4%
Traffic 4%
Animal Control 3%
Budget Highlights
Real Time Crime Center Software and Video Integration Devices Bluetooth integrated Technology Systems (BITS)
LETS Respond Crisis Negotiations Equipment
Flock License Plate Reader
UAS Program Equipment and Maintenance/Streaming Software LERMS Online Report Writing Interface Update
Community Policing, Engagement, and Communications budget Procedural Justice and Implicit Bias Program/Investigations training Training Adds for Administration, Records, and Communications Brazos Printer Paper rolls
No public comment received.
Fire Department Overview
Fire Chief Rick Bartee made the presentation to the City Council.
Services and Divisions
Fire Administration
Fire & Life Safety
Fire Inspections and Plan Review
Public Education and Community Engagement
Citywide Emergency Preparedness
Fire Operations
Fire and Emergency Medical Services
Hazmat and Technical Rescue
Training
Support Services - Logistics
Operating Expenditures Budget
Fire Operations 82%
Fire Support Services 8%
Fire & Life Safety 5%
Fire Administration 3%
Fire Training & Emergency Preparedness 2%
Budget Highlights
Increase in projected revenue from First Responder Fee
Offset the cost of providing EMS services (61% increase) Projected revenue $1,200,000
Projected expenses $223,583
Projected net revenue $966,417
New position - Administrative Battalion Chief
Support Emergency Medical Services First Responder Fee
Provide additional support for department logistics, facilities, fleet, safety and strategic planning
Grants Summary
Grant Award Summary (2019-2021) $348,451.00
AFG - regional Award of SCBA's $46,797.27 AFG-S - COVID PPE $34,864.13 EMS FUND - SSV Two EMS Lucas Devices $134,964.00 SHSGP - Haz Mat Technician and Specialist Training $658,000.00 UPRR - Donation Railcars FTC Prop $39,624.00 Total 2019-2021 $1,260,000.40
Grant Award Summary (2022 to date)
03/16/22 EMS FUND - SSV LUCAS Devices-Donation $128,015.00 04/06/22 SHSGP SCBA-Placer OES $51,200.00 04/20/22 UASI-Sacramento Personal Thermal Imaging Cameras $40,317.00 Total $219,532.00
No public comment received.
Parks, Recreation & Libraries Department Overview
Parks, Recreation & Libraries Director Jill Geller made the presentation to the City Council.
Divisions
Parks
Recreation
Libraries
Includes:
79 developed parks
4,000 acres of open space
3 libraries
3 swimming pools
2 golf courses 2 recreation centers
Maidu Museum & Historic Site
19 Adventure Club sites
Operating Expenditures Budget
Parks 34%
Youth Development 19%
Recreation 18%
Libraries & Maidu Museum 13%
Administration 10%
Golf Course Operations 6%
Total Operating Budget $43.4 Million
Budget Highlights
Recommended positions
Agronomics Technician
Parks Maintenance Worker (3)
Sr. Tree Trimmer
Park Project Technician
Librarian
Recreation Leader
Add requests
Backflow Inspect/Test/Repair
Park Amenity Replacement
MMHS Exhibit Planning
MMHS Programming
Historic District Parking Lot Maintenance
Downtown Library Security
City Council Strategic Plan
Remain fiscally responsible in a changing world
Create new programs and events to generate increased revenues Evaluate program fees
Seek partnerships and grant opportunities
Expand use of volunteers
Support community engagement and advocacy
Engage residents through communications
Conduct public workshops (virtual and in person)
Maintain a safe and healthy community
Everything we do makes a healthier you!
Enhance economic vitality
Construct quality sports venues to draw regional participation PRL is an economic drive
promotes tourism
increases home values
improves air/water quality
attracts talented workers and new residents
Deliver exceptional City services
Strategic Master Plan to guide decision making
Ensure department organizational structure to ensure efficiency and effective delivery of exceptional city services
Optimize the use of technology and data to improve operations
Invest in well-planned infrastructure and growth
Strategic Master Plan will help guide future decision making Reinvest in aging infrastructure
Develop new parks in growth areas
Effectively manage open spaces, preserves and streetscapes
Strategic Master Plan outreach findings
Residents appreciate our services - they want more
88% of residents agree that PRL improves their physical health and wellness 87% of residents agree that PRL improves their mental health 89% of residents agree that PRL makes Roseville a more desirable place to live
No public comment received.
Development Services Department Overview
Development Services Director Mike Isom made the presentation to the City Council.
Divisions
Building, Permit Center, & Code Enforcement
Business & Administrative Services
Engineering - Land Development
Planning
Operating Expenditures Budget
Building Inspection 43%
Business Services 14%
Engineering 13%
Planning 11%
Administration 10%
Code Enforcement 9%
Total $11.9 Million
Budget Highlights
Increased expenses due to ISF, fuel/fleet, new FTE, graffiti abatement contract $54,654 add to General Fun Materials, Supplies and Service budget 3% increase in budgeted secondary labor cost recovery
One full-time Code Enforcement Inspector position
$100k for graffiti abatement - third party vendor contract
No public comment received.
Public Works Department Overview
Public Works Director Jason Shykowski made the presentation to the City Council.
Divisions/Services
Public Works Administration
Engineering
Road, Bridge, Bike Trail, & Traffic Signal, Design & Construction Road Resurfacing
Floodplain Management & Flood Alert
Traffic Operations & ITS
Traffic Studies
Traffic Signal Maintenance
Street Maintenance
Road & Drainage System Maintenance
Crack Seal and Minor Road Paving
Pothole Repair
Street Sweeping
Traffic Signs & Pavement Markings
Traffic Study Improvements
Traffic Study Improvements
Traffic Control
Fall Leaf Pickup
Alternative Transportation
Roseville Transit
South Placer Transit Information Center
Bike & Pedestrian Facilities
Transportation System Management
Safe Routes to School/Crossing Guards
Fleet Services
Maintain & Manage City Fleet
Facility Services
City Facility Cleaning & Maintenance
Planning, Design, and Construction of City Buildings
City Facility Improvements & Modifications
Operating Expenditures Budget
Fleet 41%
Street Maintenance 18%
Alternative Transporation 17%
Facility Maintenance 12%
Public Works Engineering 12%
Public Works Administration 1%
Total $55.4 Million
Budget Highlights and City Council Strategic Plan
Maintain a safe and healthy community
Flood alert system maintenance $11,000
Invest in well-planned infrastructure and growth
Street maintenance cost increases $145,000
Deliver Exceptional City Services
Graffiti Abatement $100,000
Convert temporary PT Office Assistant to regular PT $20,497 Add Project Coordinator $112,966
Add Traffic Signal Maintenance Worker $123,718
Add Building Maintenance Worker $77,215
Add Custodian $63,762
Reclassifying Parts Buyer position to Supervisor $46,552 Add Fleet Mechanic $107,506
Total $808,216
No public comment received.
Economic Development Department Overview
Economic Development Director Melissa Anguiano made the presentation to the City Council.
Divisions
Economic Development
Housing
Roseville Housing Authority
Operating Expenditures Budget
Housing 72%
Community/Grants/REACH 15%
Economic Development 13%
Total 44.1 Million
Budget Highlights and City Council Strategic Plan
Enhance Economic Vitality
Digital Billboard Revenues - $450k bonus @ start of operations & 680k for year 1
Surplus Properties Sales Revenues - Approximately $10.5M Roseville Industrial Park; 505 Royer Street; 401 & 403 Oak Street Growth Factory Roseville: Venture Lab rent approximately $16k for year 1
Maintain a Safe and Healthy Community & Invest in Well-Planned Infrastructure and Growth
Local Housing Trust Fund (LHTF) State March and $7.5M in loans to 3 projects
Housing Authority Budget $7.6M, mainly Housing Choice Voucher Program
Enhance Economic Vitality
Entrepreneurship and Small Business:Leverage of Growth Factory Roseville: Venture Lab activities
ED Strategy Implementation: Projects, Programs, Marketing Efforts:
Workforce Development (Industry)
Sports Tourism and Entertainment
Storytelling
Utility-specific ED Programs and Solutions (Industry)
Strategic Initiative Fund and other funding opportunities Industry Growth: attraction, Retention & Expansion Efforts (Penumbra, TSI, Sutter, Kaiser)
Affordable Housing Development: Creative and competitive funding opportunities
Developments: City Surplus Sites: Post Office, 401 Oak, 505 Bridge, Roseville Industrial Park
Affordable Housing: Mercy, Bridge, and Hampstead
Corridor Specific Plans
No public comment received.
For information only. No action required.
6. ADJOURNMENT
Mayor Bernasconi adjourned the meeting at 6:09 p.m.