Ordering that the Placer County Tax Collector Remove Current And Future Delinquent Speical Taxes For The Community Facilities Districts From The Tax Roll.
14. Golf Maintenance Services - Agreement Amendment (PARKS, RECREATION, AND LIBRARIES
DEPARTMENT - RECREATION)
Summary: Staff recommends approval of the seventh amendment to the agreement with Brightview Golf Maintenance, Inc. to extend the term of the agreement for an additional five (5) year period commencing January 1, 2026 and ending on December 30, 2030. This agreement provides for golf course maintenance services at Woodcreek Golf Club and Diamond Oaks Golf Course at a cost not to exceed $10,727,700 for the term of the agreement. Funding is included in the Golf Course Funds, in which golf revenues offset expenses including maintenance, utilities and internal service fee expenses.
CONTACT: Rob Nakamura 916-774-5135 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-013 approving a seventh amendment to agreement, by and between the City of Roseville and Brightview Golf Maintenance, Inc., and authorizing the City Manager to execute it on behalf of the City of Roseville.
15. Pump Services - Contract Purchase Agreement Amendment (PARKS, RECREATION, AND
LIBRARIES DEPARTMENT - PARK MAINTENANCE)
Summary: Staff recommends approval of an amendment to the contract purchase agreement with Commercial Pump & Mechanical Inc. for pump services, increasing the total not-to-exceed amount from $58,318.84 to $81,321.25 for the purpose of pump rebuilds. Funding for these services is through two capital improvement projects in the Equipment Replacement Fund.
CONTACT: Brian Castelluccio 916-746-1755 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-006 approving amendment 1 to contract purchase agreement, by and between the City of Roseville and Commercial Pump & Mechanical Inc., and authorizing the City Manager to execute it on behalf of the City of Roseville.
16. Assistance to Firefighters Grant Program - Grant Acceptance, Approval of New Non-Capital Multi-Year Project, and Budget Adjustment (FIRE DEPARTMENT) Summary: Staff recommends the City Council accept the FY2024 Federal Emergency Management Agency Assistance to Firefighters Grant, approve the establishment of a new non- capital multi-year project and adopt an ordinance approving a budget adjustment in the amount of $131,520. The Fire Department was awarded a federal grant of $119,564 to provide specialty physicals for Fire Department staff. There is a requirement for matching funds of 10% ($11,956).
Since the grant will only reimburse 90% ($119,564) of the project costs, the budget adjustment will decrease General Fund resources by $11,956 from the General Fund Contingency budget.
CONTACT: Jamie Pepin 916-774-5400 [email protected] The City Council will consider the recommendation to:
a. Accept the FY2024 Federal Emergency Management Agency (FEMA) Assistance to Firefighters Grant; and
b. Approve the establishment of a new non-capital multi-year project for the FY2024 FEMA Assistance to Firefighters Grant; and
c. Adopt Ordinance No. 7032 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure.
17. Sacramento Urban Area Security Initiative - Capital Improvement Project, Grant Award, Contract Purchase Agreement, and Budget Adjustment (POLICE DEPARTMENT) Summary: Staff recommends authorization of a new Capital Improvement Project, acceptance of the 2024 Urban Area Security Initiative Subward, approval of a budget adjustment to appropriate $86,500 of grant funding in the City's Grants Fund, and approval of a contract purchase agreement with Peregrine Technologies Inc. for the purchase of Peregrine platform software. The total amount of the 3-year contract purchase agreement with Peregrine Technologies Inc. is $259,635. The annual costs for the Peregrine platform software are: Fiscal Year (FY) 2025-26, $84,000; FY2026-27, $86,520; and FY2027-28, $89,115. Future year purchases will be contingent upon approval of the Police Department's budget each fiscal year.
CONTACT: Mark Peinado 916-774-5021 [email protected] The City Council will consider the recommendation to:
a. Authorize the establishment of a new Capital Improvement Project, FY2024 Urban Area Security Initiative; and
b. Adopt Resolution No. 26-014 approving a subaward grant agreement, by and between the City of Roseville and the City of Sacramento, and authorizing the City Manager to execute it on behalf of the City of Roseville; and
c. Adopt Ordinance No. 7030 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure; and
d. Adopt Resolution No. 25-015 approving an agreement, by and between the City of Roseville and Peregrine Technologies Inc., and authorizing the City Manager to execute it on behalf of the City of Roseville.
18. Baseline Road & Watt Avenue - Notice of Completion (DEVELOPMENT SERVICES DEPARTMENT -
ENGINEERING DIVISION)
Summary: Staff recommends approval of the Notice of Completion for the Baseline Road & Watt Avenue Project as complete. The Engineering Division has made final inspection of the project and has found the roadway infrastructure work complete in accordance with the improvement plans and City specifications. This action has no impact to the City's General Fund. Construction costs were paid by the developer.
CONTACT: Andrew Druck 916-774-5577 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-004 accepting the Public Work known as Baseline Road & Watt Avenue Project, approving the "Notice of Completion", and authorizing and directing the City Engineer to execute said Notice on behalf of the City of Roseville, therefore, and accepting a portion of the dedications offered on ohe recorded map of the subdivision.
19. Fair Political Practices Commission Model Conflict of Interest Code Update (CITY CLERK
DEPARTMENT)
Summary: Staff recommends that the City Council adopt a resolution amending the Fair Political Practices Commission Model Conflict of Interest Code and Repealing Resolution No. 24-018.
CONTACT: Helen Dreyer [email protected]
The City Council will consider the recommendation to:
a. Adopt resolution 26-016 amending the Fair Political Practices Commission Model Conflict of Interest Code and Repealing Resolution No. 24-018.
20. Second Reading - Backflow Prevention Inspection and Cross-Connection Control - Municipal Code Amendment (ENVIRONMENTAL UTILITIES DEPARTMENT)
Summary: Staff recommends approval of a second reading of an ordinance amending Chapter
14.10 of the Roseville Municipal Code, which prescribes regulations governing Backflow Prevention and Cross-Connection Control.
CONTACT: Rachel Tooker 916-746-1712 [email protected] The City Council will consider the recommendation to:
a. Adopt Ordinance No. 7027 amending Chapter 14.10 of Title 14 of the Roseville Municipal Code regarding Backflow Prevention Inspection and Cross-Connection Control.
21. Second Reading - Park and Park Facility Exclusions - Municipal Code Amendment (CITY
ATTORNEY DEPARTMENT)
Summary: Staff recommends the City Council approve an ordinance for second reading amending Roseville Municipal Code Section 8.02.316, “Park and park facility exclusions." City staff is proposing modifications to the existing park and park facility exclusion ordinance to provide clarity to staff and the public and increase operational efficiencies.
CONTACT: Joseph Speaker 916-774-5325 [email protected] The City Council will consider the recommendation to:
a. Adopt Ordinance No. 7028 amending Section 8.02.316 of Chapter 8.02 Of Title 8 of the Roseville Municipal Code Regarding Park And Park Facility Exclusions.
22. Second Reading - Use Type Classifications and Definitions - Municipal Code Amendment (DEVELOPMENT SERVICES - PLANNING)
Summary: Staff recommends the City Council approve the second reading ordinance amending Sections 19.08.080 and 19.95.030 of the Roseville Municipal Code regarding Use Type Classifications and Definitions clarifying the City's definitions for "kitchens" with the purpose of defining how dwelling units are classified in the Municipal Code.
CONTACT: Eric Singer 916-774-5536 [email protected] The City Council will consider the recommendation to:
a. Adopt Ordinance No. 7029 amending Section 19.08.080 of Chapter 19.08 and Section
19.95.030 of Chapter 19.95 of Title 19 of the Roseville Municipal Code Regarding Residential Use Types And Definitions.
23. Resolution - Rachel Tooker
Summary: Commend Rachel Tooker for her 12 years of outstanding service and dedication to the City of Roseville and the Environmental Utilities Department, congratulate her for her accomplishments and lasting contributions to the organization and the community, and wish her a long, healthy, and well-deserved retirement.
CONTACT: Arleta Wagenhals 916-774-5200 [email protected]
24. Staffing Changes and Side Letter Agreement with Roseville Police Association (HUMAN
RESOURCES DEPARTMENT)
Summary: As part of an ongoing assessment of the appropriate staffing levels to provide a high level of service to the community, staff recommends City Council approve the Seasonal/Temporary salary schedule reflecting an update to the Soccer Official pay structure. In addition, staff recommends that the City Council approve the side letter agreement between the City of Roseville and the Roseville Police Association related to classifications eligible for certification/training special pay. For the remainder of FY2025-26, the estimated financial impact of these recommendations is $12,200 to the General Fund. Beyond this fiscal year, the recommended changes will have an estimated annual ongoing impact of $17,700.
CONTACT: Macy Dippert 916-774-5215 [email protected] The City Council will consider the recommendation to:
a. Adopt Ordinance No. 7033 amending Ordinance No. 7025, the salary ordinance for
seasonal/temporary employees, as amended by appendix "A" to be effective January 24, 2026, as an urgency measure;
b. Adopt Resolution No. 26-017 approving a side letter to the Memorandum of Understanding for employees represented by the Roseville Police Association, and authorizing the City Manager to execute it on behalf of the City of Roseville.
25. Minutes of Prior Meetings (CITY CLERK DEPARTMENT)
Summary: Staff recommends approval of the minutes of the December 17, 2025 City Council Meeting.
CONTACT: Adilia Keller 916-774-5265 [email protected] The City Council will consider the recommendation to:
a. Approve the minutes of the December 17, 2025 City Council Meeting.
END OF CONSENT CALENDAR
VIII. PRESENTATIONS/REPORTS
26. Council Discretionary Funds Request - PRIDE Industries (CITY MANAGER DEPARTMENT -
ASSISTANT CITY MANAGER)
Summary: Memo from Executive Assistant Heather Blanco and City Clerk Carmen Avalos requesting the City Council consider a request for a $2,500 sponsorship from Council Discretionary Funds for PRIDE Industries' 60th Anniversary Gala on February 28, 2026, at PRIDE Industries' Roseville headquarters. This milestone event supports the 60 years of inclusion, innovation, and impact, bringing together leaders, change makers, and community supporters.
The event will spotlight the contributions of the Honorable Tony Coelho, former U.S.
Congressman and architect of the American Disabilities Act, who will receive the Lifetime Achievement Award. Guests and sponsors will champion PRIDE Industries' mission to create employment opportunities for people with disabilities, making this event a tribute to the past and a commitment to the future. The balance remaining in the Council’s Discretionary Funds for FY2025-26 is $11,321.
CONTACT: Heather Blanco 916-746-1171 [email protected] The City Council will consider the recommendation to:
a. Consider a request for $2,500 sponsorship from Council Discretionary Funds for PRIDE Industries' 60th Anniversary Gala.
Vice Mayor Alvord declared a conflict of interest as she is employed by Pride Industries, and left the dais at 6:30 pm.
Tracy Snyder, Director of Philanthropy at Pride Industries, spoke in support of the request.
Motion by Councilmember Houdesheldt to award $2500 from Council Discretionary funds.
Motion died due to lack of a second.
Motion by Councilmember Roccucci, second by Councilmember Mendonsa, to award $2000 from Council Discretionary funds to Pride Industries for their 60th anniversary gala. The motion passed.
Ayes: Councilmember Houdesheldt, Councilmember Mendonsa, Councilmember Roccucci, Mayor Bernasconi.
Absent: Vice Mayor Alvord.
Vice Mayor Alvord returned to the dais at 6:36 pm.
27. Council Discretionary Funds - Spanger Elementary Parent-Teacher Club (CITY MANAGER
DEPARTMENT - ASSISTANT CITY MANAGER)
Summary: Staff recommends the City Council consider a request for a $500 sponsorship from Council Discretionary Funds for Spanger Elementary Parent-Teacher Club to support its annual Pancakes & PJ’s community fundraiser on March 19, 2026. The event typically serves more than 400 attendees and is designed to be inclusive and affordable for all families. Proceeds from the 2026 event will help to upgrade the 20-year-old bookroom, which provides class sets of books for all grade levels to support reading instruction. The balance remaining in the Council’s Discretionary Funds for FY2025-26 is $11,321.
CONTACT: Heather Blanco 916-746-1171 [email protected] The City Council will consider the recommendation to:
a. Consider a request for a $500 sponsorship from Council Discretionary Funds for Spanger Elementary Parent-Teacher Club.
Sabrina Melhorn, President of the Spanger Elementary Parent Teacher Club, spoke in support of the request.
Jennifer Chapman requested the amounts and to whom discretionary funds were awarded this fiscal year.
Item failed due to lack of a motion
28. Development Impact Fee Reports for Fiscal Year Ended June 30, 2025 (FINANCE DEPARTMENT) Summary: Staff recommends Council accept the informational Development Impact Fee Reports prepared for the fiscal year that ended June 30, 2025. California state legislation sets certain legal and procedural parameters for the charging of development impact fees. This legislation was passed as AB1600 by the State Legislature and is now codified as California Government Code Sections 66000 through 66008.
CONTACT: Jeannine Thrash 916-774-5473 [email protected]
The City Council will consider the recommendation to:
a. Accept the Informational Development Impact Fee Report.
Finance Director, Scott Pettingell, made the presentation to the City Council.
Jennifer Chapman recommended development impact fees could be used for ADA compliance.
Item for information only; No Council action required.
29. Park Naming Policy Review (PARKS, RECREATION, AND LIBRARIES DEPARTMENT - PARK
DEVELOPMENT)
Summary: Staff recommends Council review of the Parks, Recreation & Libraries Department’s Park Naming Policy, and requests direction for revision if desired.
CONTACT: Tara Gee 916-774-5253 [email protected]
The City Council will consider the recommendation to:
a. Review the current Park Naming Policy and provide direction for revision.
Parks, Recreation and Libraries Director Jill Geller made the presentation to the City Council.
Parks Planning and Development Manager Tara Gee continued the presentation.
Staff will return at a later meeting with more options for discussion.
IX. PUBLIC COMMENTS
This is the second opportunity to make a public comment on non-agenda items.
No public comment received.
X. STAFF/COUNCIL REPORTS
Northern California Power Agency Meeting — Councilmember Roccucci reported on attendance.
Mayor Bernasconi announced upcoming events.
XI. ADJOURNMENT
Mayor Bernasconi adjourned the meeting at 7:34 p.m.
City Council
Communication
Meeting Date: 2/4/2026
Item #: VIII.21
File #: 0323
Item ID: 2026-30
Title: Roseville Police Department - E-Scooters, E-Bikes, and E-Motorcycles Contact: Mark Peinado 916-774-5021 [email protected]
SUMMARY
Staff recommends Council receive an informational presentation on Electric Devices (E-Scooters, E-Bikes, and E-Motorcycles).
RECOMMENDATION
Staff recommends Council receive an informational presentation on Electric Devices (E-Scooters, E-Bikes, and E-Motorcycles).
BACKGROUND
Over the last year, the city has had a significant increase in the use of e-bikes, particularly with the youth in the community. This has led to numerous complaints regarding rider behavior, traffic issues, and safety issues surrounding young riders. The Police Department has taken the lead in both education and enforcement related to this issue and has worked with our local school districts in an attempt to address safety concerns. However, the issue has persisted, due in part to a limited and confusing regulatory environment where existing laws are not sufficient to help remedy the issue. The Police Department will provide a briefing to the City Council on our efforts over the past year, current laws and regulations surrounding e-bikes, and potential legislative efforts underway to assist. This is an informational briefing only.
FISCAL IMPACT
There is no fiscal impact.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The presentation on electric devices meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
1. Ensure a safe and healthy community
Respectfully Submitted,
Mark Peinado, Management Analyst
Troy Bergstrom, Police Chief
ATTACHMENTS:
1. E-Devices CC PP Pres (002)
REVIEWERS:
Mark Peinado, Police Department Created/Initiated - 1/14/2026 Liz Luevano, Police Department Approved - 1/15/2026
Troy Bergstrom, Police Department Approved - 1/15/2026
Kelly Aye, City Attorney Department Approved - 1/20/2026 Katrina Six, City Clerk Department Approved - 1/21/2026 Ryan DeVore, City Manager Department - Assistant City Manager Approved - 1/23/2026 Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 1/24/2026 Michelle Sheidenberger, City Attorney Department Approved - 1/26/2026 Dominick Casey, City Clerk Department Approved - 1/27/2026 Katrina Six, City Clerk Department Final Approval - 1/27/2026
E-Scooters, E-Bikes, and E-Motorcycles
Courtney Scurria, Police Lieutenant
February 4th, 2026
E-Scooters
§Electric scooters or
motorized scooters are
two-wheeled devices
with handlebars, a
floorboard or seat and
are powered by an
electric motor (407.5
CVC)
§ Rider must have a valid Driver License or Learner’s
Permit (21235(d) CVC)
§ That means anyone under 15 ½ cannot ride an e-
scooter
§ 15 MPH maximum speed (22411 CVC)
§ Helmet required for those under 18 (21212(a) CVC)
§ Must use the bike lane and/or bike path/trail unless
otherwise prohibited (21229CVC & 21230 CVC)
§ Cannot be operated on sidewalks (21235(g) CVC)
§ Riders may not carry passengers (21235(e)CVC)
E-Scooters
E-Bikes
§ Bicycles equipped with fully
operable pedals and an
electric motor that does not
exceed 750 watts of power
(312.5 CVC)
§ E-Bicycles are broken down
into three classifications:
• Class 1
• Class 2
• Class 3
• Class 1 and Class 2 E-bikes are equipped with
either a pedal assisted (Class 1) or throttle assisted
(Class 2) electric motor
• Electric motor assistance ceases after reaching
speeds of 20 MPH
• Helmet required (Under 18)
• Can be operated on sidewalks and bike paths
Class 1 and Class 2 E-Bikes
• Class 3 E-bikes are equipped with a pedal assisted
electric motor
• Electric motor assistance ceases after reaching
speeds of 28 MPH
• Must be 16 years or older (21213(a) CVC)
• Helmet required (all ages) (21212(a)CVC)
• Cannot be ridden on a path or trail (21207.5 CVC)
Class 3 E-Bikes
E-Motorcycles
§ Definition and Classification
§ SB 586, effective Jan. 1st, 2026
added 436.1 CVC
§ Defines an “off-highway electric
motorcycle.”
§ Classifies an off-highway electric
motorcycle as an off-highway
motor vehicle, thereby subjecting
them to all the same rules and
regulations as an off-highway
motor vehicle
§ Often incorrectly marketed and
referred to as E-Bikes
§ Operational Restrictions
§ E-motorcycles CANNOT be operated in any public place within the city, including:
§ Roads
§ Bike lanes
§ Sidewalks
§ Bike paths
§ Greenspace
§ E-motorcycles CAN be operated on private property or at Off- Road parks provided they are registered with the DMV and display a CA OHV Sticker
E-Motorcycles
2025 Review
§ Education
§ School Resource Officers (SROs) spoke with incoming
freshman classes
§ Traffic unit presented to local schools on bicycle safety § Social media
§ Neighborhood meetings
§ Safety videos and school newsletter messaging
§ Enforcement
§ Office of Traffic Safety (OTS) funded enforcement
§ Bicycle safety
§ E-bicycles and E-motorcycles
§ Outside of special operations, officers regularly engage with youth in the community to reinforce safe riding practices
Department Efforts
Safety Tips
§ Know before you buy
§ Are you or your child experienced
enough in riding and/or
knowledgeable about rules of the
road?
§ Is the device you are considering
legal based on the vehicle code and
where you or your child plan to ride
it?
§ Take time to do some research
before making that purchase.
§ Know before you ride
§ Be educated on the laws
surrounding your device.
§ Be aware of where you can ride it
legally within the City of Roseville.
§ Be prepared to receive a possible
citation if found in violation.
§ School District based restrictions difficult in our city § Laws regulating E-bikes are convoluted for enforcement § Potential legislative change for under 16 age restriction on Class-2 E-bikes as a first step
Law and Regulation Landscape
Questions?
City Council
Communication
Meeting Date: 2/4/2026
Item #: VIII.22
File #: 0202 & 0201-01
Item ID: 2026-17
Title: Fiscal Year 2024-25 Fourth Quarter Report and Budget Adjustment Contact: Nancy Rothlisberger 916-774-5314 [email protected]
SUMMARY
Year-end results for Fiscal Year (FY) 2024-25 reflect a General Fund budget surplus of $11.64 million, as detailed in the FY2024-25 Fourth Quarter Report. Staff recommends a budget adjustment to transfer $671,274 of this surplus to the Youth Development Fund to address its year-end shortfall. Staff will return to Council at a later date to recommend appropriating the remainder of the year-end General Fund budget surplus.
RECOMMENDATION
Staff recommends that the City Council adopt an ordinance approving a budget adjustment transferring General Fund resources to the Youth Development Fund.
BACKGROUND
Year-end results for the FY2024-25 General Fund budget reflect a surplus of $11.64 million. This is a better result than had been expected in the FY2024-25 third quarter report. Key drivers of this surplus are:
• $5.4 million in revenues exceeding original estimates, or 2.4% of the operating revenue budget, including $1.4 million in sales taxes and $1.6 million in property tax • $6.2 million in operating expenditure savings, or 2.7% of the operating expenditure budget, primarily due to vacant positions
Staff recommends transferring $671,274 of this prior-year General Fund surplus to cover the shortfall in the
Youth Development Fund related to ongoing program expenses and capital improvements previously approved by the City Council. The FY2025-26 adopted budget programmed a $2,356,336 transfer from the General Fund to the Youth Development Fund ($1,595,109 for operating expenditures and $761,227 for capital expenditures). This additional transfer will bring the total General Fund support for the Youth Development Fund in FY2025-26 to $3,027,610.
Staff will return to Council at a later date to recommend appropriating the remainder of the year-end General Fund budget surplus.
FISCAL IMPACT
The recommended adjustment to the FY2025-26 budget will result in a $671,274 reduction to the General Fund balance and a $671,274 increase to the Youth Development Fund balance.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The Fiscal Year 2024-25 Fourth Quarter Report and Budget Adjustment meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
2. Remain fiscally responsible in a changing world
Respectfully Submitted,
Nancy Rothlisberger, Budget Manager
Scott Pettingell, Finance Director
ATTACHMENTS:
1. Ordinance 7038
2. FY25 Fourth Quarter Report
REVIEWERS:
Nancy Rothlisberger, Finance Department - Budget Created/Initiated - 1/14/2026 Nancy Rothlisberger, Finance Department - Budget Approved - 1/14/2026 Scott Pettingell, Finance Department - Budget Approved - 1/16/2026 Kelly Aye, City Attorney Department Approved - 1/21/2026 Katrina Six, City Clerk Department Approved - 1/21/2026 Ryan DeVore, City Manager Department - Assistant City Manager Approved - 1/22/2026 Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 1/22/2026 Michelle Sheidenberger, City Attorney Department Approved - 1/23/2026 Dominick Casey, City Clerk Department Approved - 1/27/2026 Katrina Six, City Clerk Department Final Approval - 1/27/2026
ORDINANCE NO. 7038
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2025-26
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2025-26, is hereby amended as listed on the attached budget adjustment for the Fiscal Year 2024-25 Fourth Quarter Report.
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 (3) conspicuous locations in the City and she 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 , 2026, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
REQUEST FOR BUDGET ADJUSTMENT
Updated 11/19/2025
Please complete the cells highlighted in yellow.
REQUESTER NAME & TITLE: FISCAL YEAR:
PREPARER NAME & TITLE: ORDINANCE:
DEPARTMENT/DIVISION:
EXPENDITURES/EXPENSES/TRANSFERS OUT
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
1001
6801
10001
671,274 Increase transfer out from General Fund to Youth Development Fund
EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL 671,274
REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
6591 4801 10001 671,274 Increase transfer in to Youth Development Fund from General Fund
REVENUES/TRANSFERS IN TOTAL 671,274
NET ADJUSTMENT -
FUND BALANCE
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
1001 3601 00000 000000 (671,274) Decrease General Fund Balance 6591 3601 00000 000000 671,274 Increase Youth Development Fund Balance 3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL -
Justification for Budget Adjustment:
Staff recommends the transfer of $671,274 from the FY2024-25 General Fund (1001) surplus to the Youth Development Fund (6591) to support program expenses, including capital improvements previously approved by the City Council. 2025-26
Rendi Hodge, Parks, Recreation and Libraries Manager
Alexandra Marquez, Budget Analyst
Parks, Recreation and Libraries
Fiscal Year 2024-25
Fourth Quarter Report
1 FISCAL YEAR 2024-25 – FOURTH QUARTER REPORT
Overview
This financial report provides an overview of the City of Roseville’s financial status through the fourth quarter of fiscal year (FY) 2024-25 (July 1, 2024, through June 30, 2025) for:
(1) the General Fund;
(2) the major enterprise operating funds; and
(3) revenues in other selected funds.
General Fund Summary
The City ended FY 2024-25 in a strong overall financial position, with the General Fund reporting revenues above budget and expenditures below appropriations. This favorable outcome reflects continued resilience in key revenue sources, effective expenditure management, and successful cost recovery practices across departments.
General Fund operating revenues exceeded budget estimates by 2 percent (approximately $5.4 million), driven by strong performance across several major categories. Sales and Use Tax revenues (Bradley-Burns and Measure B combined) outperformed estimates by 1.4 percent ($1.4 million), closing the year at $71.1 million for Bradley-Burns and $29.9 million for Measure B.
These results were consistent with expectations, as sales tax activity showed a modest recovery during the year, despite factors slowing overall sales tax growth, including high interest rates, a continued shift toward non-taxable service-related spending, and broader economic uncertainties.
Property tax revenues remained a stable and significant revenue source, totaling $76.7 million, approximately 2 percent ($1.6 million) above budget, representing a 5.7 percent increase over the prior fiscal year. This growth reflects sustained residential property values and continued new construction activity. Transient Occupancy Tax (TOT) revenues also exceeded expectations, ending the year at $7.3 million, or 1 percent above budget, indicating steady lodging activity.
Development activity continued with an upward trend during FY2024-25. Building permit revenues, plan check fees, and engineering inspection fees collectively ended the year approximately $0.6 million above budget estimates. Revenues in other categories closed the year approximately 11 percent above budget ($1.9 million).
2 General Fund spending concluded the fiscal year 3 percent below budget, primarily due to position vacancies, cost savings in professional services, and lower-than-anticipated spending on materials, services, and supplies across several departments.
The combined surplus for FY2024-25 amounts to $11.64 million, as presented in the following table:
General Fund FY2024-25 Year-End Results
(Operating and Non-Operating)
Variance from
Budget ($)
Sales and Use Tax - Bradley Burns 747,000 Sales and Use Tax - Measure B 680,000 Property Tax 1,574,000
Other Revenues 2,447,000
Revenue surplus 5,448,000
Expenditure savings 6,193,000
Total General Fund Year-End Surplus $ 11,641,000
General Fund: Operating Revenues
The following table displays cumulative General Fund operating revenue through the fourth quarter and a revenue budget to actual comparison for FY2024-25.
Revenue Type Amended
Budget
Cumulative
Revenues
Balance
Remaining
% of
Budget
Collected
Sales and Use Tax – Bradley-Burns $ 70,385,000 $ 71,131,698 $ 746,698 101% Sales and Use Tax – Measure B 29,200,000 29,880,035 680,035 102% Sales and Use Tax – State Aid for Public Safety 1,687,000 1,582,845 (104,155) 94% Property Tax 75,126,000 76,699,912 1,573,912 102% Transient Occupancy Tax (TOT) 7,200,000 7,294,764 94,764 101% Parks, Recreation & Libraries Programs 5,279,735 5,173,466 (106,269) 98% Building Permits 3,212,920 3,654,226 441,306 114% Plan Check Fees 2,705,700 2,839,894 134,194 105% Engineering Inspection Fees 380,450 459,811 79,361 121% Other Revenues 17,274,084 19,182,687 1,908,603 111% Transfers 18,694,658 18,694,658 - 100% TOTAL $ 231,145,547 $ 236,593,996 $ (5,448,449) 102%
3 General Fund operating revenues ended the year 2 percent above budget, totaling $5.4 million over estimates, reflecting strong performance across several major revenue categories. Combined sales tax (Bradley Burns and Measure B) revenues outperformed estimates by 1.4 percent ($1.4 million). Property tax revenues also remained strong in FY2024-25, surpassing the budget estimate by $1.6 million. In addition, building permits, plan check fees, and engineering inspection fees ended the year above budget by $0.6 million, while other revenues were $1.9 million above projections.
Bradley-Burns and Measure B Sales Tax
The City's Bradley Burns and Measure B Sales and Use tax revenues closed the year at $71.1 and $29.9 million, respectively. Bradley Burns sales tax exceeded budget estimates by one percent ($0.75 million), and Measure B sales tax finished two percent above budget ($0.68 million). These results were largely anticipated, as revenue data throughout the year indicated a slight recovery in sales and use tax growth. As mentioned previously, the slowing revenue growth is attributed to the ongoing impact of high interest rates and a shift in consumer spending towards service-related purchases, which are not taxable.
The graphs provided below show Bradley Burns and Measure B Sales and Use Tax revenues collected over the past three fiscal years and by business category. 101%102%94%102%101%98%114%105%121%111%100%102%0% 20% 40% 60% 80% 100% 120%Sales and Use Tax - Bradley BurnsSales and Use Tax - Measure BSales and Use Tax - Public SafetyProperty TaxTransient Occupancy Tax (TOT)Parks, Recreation & LibrariesBuilding PermitsPlan Check FeesEngineering Inspection FeesOther RevenuesTransfersTotalGeneral Fund Operating Revenues Cumulative Percentage of Revenue CollectedJuly 1, 2024 – June 30, 2025Amended Budget
4 *Total Revenue before state administrative fees *Total Revenue before state administrative fees
Additional Sales Tax Information: The City's sales tax consultant has prepared a detailed sales tax and business activity report (attached at the end of this report) that provides a list of the top 25 sales tax remitters, a summary of cash receipts, and sales tax data by economic category.
$0$10$20General Retail Food Products Transportation Construction Business ToBusinessMiscellaneous County Pool MillionsBradley Burns Sales & Use Tax by CategoryFY2022-23FY2023-24FY2024-25$0$5$10General Retail Food Products Transportation Construction Business ToBusinessMiscellaneous MillionsMeasure B Sales & Use Tax by CategoryFY2022-23FY2023-24FY2024-25 Bradley-Burns Sales & Use Tax Revenues
Measure B Sales & Use Tax Revenues
$71.2 $70.1 $71.1$0$10$20$30$40$50$60$70RevenueMillionsFY2022-23FY2023-24FY2024-25$29.1 $29.9 $29.9$20$21$22$23$24$25$26$27$28$29$30RevenueMillionsFY2022-23FY2023-24FY2024-25
5 Property Tax
Property tax revenue for FY2024-25 is based
on assessed valuation as of January 1, 2024.
The City’s property tax revenues surpassed
estimates by two percent, reaching $76.7
million compared to the $75.1 million budgeted.
This performance represents a 5.7 percent
increase over the prior fiscal year, reflecting
continued strength in residential property
values and growth from new construction
activity. The accompanying graph illustrates property tax revenue trends over the past three fiscal years, highlighting the sustained upward trajectory of this revenue source.
Transient Occupancy Tax (TOT)
The City’s TOT, or hotel tax, totaled $7.3 million through year end, exceeding budget estimates by one percent or
$94,764.
Parks, Recreation & Libraries
(PRL) Programs
PRL program revenues concluded the year two percent below the annual budget target. Despite this variance, year‑end revenues increased by 7.4 percent compared to FY2023‑24. This growth was supported by strong program participation, sustained membership levels, and consistent demand for facility and picnic rentals.
Building Permits, Plan Check Fees, Engineering
Inspection Fees
Building permit revenues and plan check fees ended the year above budget, driven by sustained levels of development activity. During FY2024-25, the City experienced a slight decrease, compared to the prior year, in issued single-family residential building permits; however, this $67.6 $72.6 $76.7$0$20$40$60$80$100RevenueMillionsProperty Tax FY2022-23FY2023-24FY2024-25$5.5 $7.2 $7.3$0$2$4$6$8RevenueMillionsTransient Occupancy Tax FY2022-23FY2023-24FY2024-25
6 shortfall was offset by a substantial increase in multi‑family residential permits issued.
Engineering inspection fees also ended the year in excess of budget, primarily due to sustained levels of encroachment permits and planning permit reviews. The Development Services Department recovers the cost of staff labor for utility infrastructure related inspections from the utility franchise fees received in the General Fund.
Other Revenues
Other revenues include reimbursements from the state; development reimbursement activity; property transfer tax; business license tax; rental payments; and animal licensing, passport processing, permit franchise, and other fees. Revenues in this category ended the year 11 percent above budget ($1.9 million). The primary drivers of this positive variance include higher-than- anticipated interest and investment revenues ($0.9 million), business license tax and other permits and fees ($0.8 million), property transfer tax revenues ($0.1 million), and recoveries of uncollectible accounts ($0.1 million).
General Fund: Operating Expenditures
Department Amended
Budget
Cumulative
Expenditures Variance
% of
Budget
Expended
Police $ 64,484,141 $ 64,482,257 $ (1,884) 100% Fire 49,393,426 49,273,287 (120,139) 100% Parks, Recreation & Libraries 38,823,298 36,850,471 (1,972,827) 95% General Government* 16,320,261 15,308,163 (1,012,098) 94% Development Services 13,317,113 11,599,267 (1,717,846) 87% Public Works 11,822,829 10,342,797 (1,480,032) 87% Economic Development & Housing 1,000,672 958,057 (42,615) 96% Other Expenditures (Includes Annexation Payments
and Transfers Out) 48,099,121 47,648,750 (450,371) 99% TOTAL $ 243,260,861 $ 236,463,049 $ (6,797,812) 97% Encumbrance Reserve** (604,840) $ - (604,840) TOTAL $ 242,656,021 $ 236,463,049 $ (6,192,972) 97% *The General Government departments are City Council, City Manager’s Office, City Attorney’s Office, City Clerk, Finance, Public Affairs and Communications, and Human Resources. ** The encumbrance reserve is for future expenditures that have been committed but will be paid in a future fiscal year.
7 General Fund expenditures through the end of the fiscal year were three percent below estimates.
Lower spending across General Fund departments was primarily due to cost savings from vacant positions in PRL, general government departments, Development Services, and Public Works, as well as underspending on materials, services, and supplies. Some examples include:
The City’s public safety departments (Police and Fire) were on budget through the end of the fiscal year. Anticipated overages in the Police Department, driven by overtime, lower‑than‑expected workers’ compensation reimbursements, and additional SPCA charges for animal intakes exceeding contract limits, were fully offset by General Fund savings generated in other operational areas and contingency funds. PRL expenditures ended the fiscal year 5 percent under budget, primarily due to position vacancies and cost savings in professional services, utility charges, and maintenance costs. Development Services expenditures finished the year under budget at 87 percent of budget, primarily due to higher-than-anticipated reimbursements from full cost recovery development projects, salary savings from vacant positions, and lower-than-expected professional services costs.
Public Works expenditures ended the year at 87 percent of budget due to a combination of factors, including staff vacancies, higher-than-anticipated secondary labor cost recovery, and reimbursed costs received within the Engineering and Street Maintenance Divisions. Additional favorable variances are attributable to cost savings in professional services, utility charges, and routine maintenance expenses.
100%100%95%94%87%87%96%99%97%0% 20% 40% 60% 80% 100%PoliceFireParks, Recreation & LibrariesGeneral Government*Development ServicesPublic WorksEconomic Development & HousingOther ExpendituresTotalGeneral Fund Department Operating Expenditures Cummulative Percentage of Budget ExpendedJuly 1, 2024 – June 30, 2025Amended Budget % of Budget Expended
8 Economic Development (including the Housing Division) closed the year at 96 percent of the budget due to lower-than-expected expenditures on professional services, software, and training in Economic Development and salary savings in the Housing Division.
Enterprise Funds: Operating Revenues
The table below displays data for operating revenue in the City’s seven enterprise funds.
Following the table are details on each.
BUDGET TO CUMULATIVE REVENUE COMPARISON
July 1, 2024 – June 30, 2025
Amended
Budget
Cumulative
Revenues
Balance
Remaining
% of
Budget
Collected
Electric $ 225,921,521 $ 237,037,199 $ 11,115,678 105% Water Operations 44,659,688 46,810,043 2,150,355 105% Wastewater Operations 59,996,002 61,240,135 1,244,133 102% Waste Services Operations 42,728,728 45,119,088 2,390,360 106% Transit 8,708,215 6,728,937 (1,979,278) 77% Transportation 1,854,457 1,688,123 (166,334) 91% Youth Development 9,376,218 7,887,081 (1,489,137) 84%
Electric Fund
Electric revenues exceeded budget by $11.1 million (5 percent), driven primarily by stronger-than-expected electric utility sales. Key contributors to this variance include:
- Retail electric revenues were $10.7 million above budget, reflecting warmer-than-average temperatures that increased residential demand.
- Higher consumption by commercial customers contributed $2.9 million in additional revenue. - Wholesale power sales outperformed budget expectations by $1.7 million, further contributing to the overall positive operating revenue variance.
These favorable variances were partially offset by a $4.2 million shortfall due to lower‑than‑expected load from a large industrial customer, resulting in a net $11.1 million positive variance.
9 Water Operations Fund
Revenues in the Water Operations Fund closed the fiscal year $2.2 million (5 percent) above budget. The favorable variance was primarily attributable to:
- Utility service charges exceeded budget by $1.5 million, driven by higher-than-anticipated water usage, which more than offset lower-than-forecasted meter service charges. - Wheeling revenues were $0.4 million above budget, resulting from unforeseen demand from the Placer County Water Agency (PCWA).
- Higher than anticipated interest revenue exceeded budget by $0.3 million.
Wastewater Operations Fund
Revenues in the Wastewater Operations Fund ended the fiscal year $1.2 million (2 percent) above budget. Key contributors to this variance include:
- Utility service charges exceeding budget by $2.0 million, primarily due to stronger-than- anticipated residential account growth.
- Recycled Water Sales were nearly $0.8 million above budget. This revenue source can fluctuate based on weather conditions, regulatory requirements, drought impacts, customer usage patterns, and an expanding customer base.
- Renewable Natural Gas (RNG) sales revenues exceeded expectations by $0.09 million, as an increasing number of Waste Services vehicles used RNG produced at the Pleasant Grove Wastewater Treatment Plant.
- Additional favorable factors include unbudgeted FEMA reimbursements of $0.3 million, energy rebates totaling $0.06 million from Wesco Energy and Pacific Gas and Electric for the Pleasant Grove Wastewater Treatment Plant, and higher-than-anticipated interest earnings of $0.3 million.
These positive variances were partially offset by a $0.09 million shortfall in permit inspection fees and wastewater operating reimbursements from regional partners that were $2.2 million below budget. Reimbursement revenues are inherently difficult to forecast, as they are based on actual operating expenditures and each partner’s proportional volumetric share for the fiscal year.
Waste Services Operations Fund
Waste Services Operations Fund revenues ended the fiscal year $2.4 million (6 percent) above budget, driven primarily by:
10 - Utility service charges of $1.8 million above budget, reflecting greater-than-anticipated residential account growth.
- Interest earnings exceeded budget by $0.3 million.
- Franchise hauler fees of $0.05 million above budget, attributable to higher-than-projected solid waste tonnage.
- Unbudgeted cardboard hauling revenues totaling $0.2 million.
Transit Fund and Transportation Fund
Revenues for the Transit and Transportation Funds ended the year below budget but aligned with actual expenditures, reflecting the nature of Local Transportation Funds (LTF), a primary funding source for both funds. LTF revenues are restricted to eligible activities and are directly tied to actual spending needs. Roseville Transit experienced a 30 percent increase in ridership compared to the previous year, which will help offset the request for LTF needed to fund the gap between revenues and expenditures. In addition, lower costs incurred during the year for eligible transit operations and the use of fund balance reduced the amount of revenue recognized. Similarly, Transportation Fund revenues were below budget due to lower-than-anticipated expenditures, including salary savings and unspent materials, services, and supplies funding, as detailed further in this report.
Youth Development Fund
Revenues in the Youth Development Fund ended the year at 84 percent of the budget.
Although registration held steady for preschool and grant-funded programs, Adventure Club registrations were slightly lower than anticipated due to a second state-mandated after-school program provider offering a similar service to families on school campuses.
Additionally, limited staffing resources have made expanding registration at multiple Adventure Club sites challenging, impacting the ability to generate additional revenue.
The Youth Development Fund ended FY2024-25 with a deficit, as revenues did not meet expenditures. Staff plan to recommend eliminating the deficit in FY2025-26 with a transfer from year-end General Fund surplus, derived from PRL operating budget savings and additional General Fund support.
11 Enterprise Funds: Operating Expenditures
The table below displays data for operating expenditures in the City’s seven enterprise funds.
Following the table are details on each.
BUDGET TO CUMULATIVE EXPENDITURE COMPARISON
July 1, 2024 – June 30, 2025
Amended
Budget
Cumulative
Expenditures Variance
% of
Budget
Expended
Electric $ 199,992,253 $ 185,256,911 $ (14,735,342) 93% Water Operations 44,360,915 37,323,909 (7,037,006) 84% Wastewater Operations 59,898,760 54,917,656 (4,981,104) 92% Waste Services Operations 48,921,556 43,865,336 (5,056,220) 90% Transit 8,686,560 7,695,522 (991,038) 89% Transportation 1,766,204 1,664,231 (101,973) 94% Youth Development 9,200,345 8,382,481 (817,864) 91%
Electric Fund
Electric expenses finished the year $14.7 million under budget, driven by multiple factors:
- Power supply costs were $4.1 million below budget, reflecting lower-than-anticipated cost of purchasing renewable energy credits.
- Generation costs were $1.2 million under budget, driven by reduced variable maintenance and chemical usage associated with extended outages at the Roseville Energy Park (REP). - Spending on public programs and contracted services was $2.0 million below budget, primarily due to project delays.
- Cost savings of $4.2 million were from lower-than-expected maintenance activities, professional services, and small equipment purchases.
- Personnel costs were $2.6 million under budget due to salary savings, and labor cost reimbursements exceeded expectations by $0.6 million.
Water Operations Fund
Expenses in the Water Operations Fund ended the fiscal year $7.0 million (16 percent) below budget. The favorable variance was primarily driven by:
12 - Salary savings of $2.6 million due to staff vacancies resulting from challenges in recruiting experienced personnel. While modest savings were realized in overtime, the majority of personnel savings were vacancy-related.
- Underspending of professional services by $1.5 million due to key staff vacancies, resulting in delays of several projects and studies.
- Potable water generation costs were $0.6 million below budget. These costs are budgeted to align with contracted raw water volumes and may fluctuate due to weather conditions, regulatory factors, drought impacts, and customer demand. - Underspending of various repairs and maintenance accounts by $0.6 million
Wastewater Operations Fund
Expenses in the Wastewater Operations Fund ended the fiscal year $5.0 million (8 percent) below budget, reflecting efficiency gains and proactive energy management. The cost savings were primarily driven by the following:
- Salary savings of $2.0 million related to vacancies. Similar to the Water Utility, hiring experienced employees has been difficult, resulting in salary savings and lower-than- budgeted training and travel expenses.
- Cost savings of $1.3 million from reduced utility charges. Infrastructure upgrades that focus on energy efficiency are resulting in lower-than-expected utility costs. - Cost savings of $0.77 million related to repairs and maintenance, due to fewer unexpected breakdowns, more efficient use of the equipment, and successful preventative maintenance strategies that reduced the need for costly repairs.
Waste Services Operations Fund
Expenditures in the Waste Services Operations Fund ended the fiscal year $5.0 million (10 percent) below budget. Key factors contributing to this variance include:
- Salary savings of $1.3 million related to vacancies due to difficulties recruiting experienced employees.
- Professional services savings of $1.4 million, primarily due to delays in implementing new technology associated with fleet expansion. Licensing and monitoring fees were also lower than anticipated, as fewer vehicles were placed into service. Additionally, the planned SB 1383 (California law that mandates reductions in short-lived climate pollutants, particularly methane, by redirecting organic waste from landfills) compliance assistance study was deferred to FY2025-26.
13 - Fuel cost savings of $0.3 million, reflecting the continued transition of the Waste Services fleet to Renewable Natural Gas (RNG). Staff continues to refine fuel cost projections as the transition progresses.
- Cost saving of $0.8 million related to vehicle replacement. Market instability has introduced complexity into forecasting replacement costs.
- Underspending of various repairs and maintenance accounts by $0.8 million due to fewer than anticipated maintenance needs.
Remaining cost savings across the Water, Wastewater, and Waste Services operations funds are attributable to modest underspending in emergency contingency funds, training and development, and other operational expenses while continuing to provide reliable, high-quality, and uninterrupted utility services.
Net positive year-end results in all three Environmental Utilities operating funds (Water, Wastewater, and Waste Services) will be transferred to rehabilitation funds for projects, or to rate stabilization funds to mitigate future rate increases. Transit Fund and Transportation Fund
Expenditures for the Transit Fund ended the year below budget at 89 percent due to several factors, including:
- Lower-than-expected contracted transit operator services. - Deferred timing of shelter replacement costs and the implementation of new routes, which include printing and advertising expenses for the new transit service guides and bus shelter route maps.
- Savings in training and development costs and reduced repair and maintenance needs.
Transportation expenditures ended the fiscal year under budget at 94 percent due to the following:
- Lower-than-expected professional services and engineering and environmental services to update the Transportation Systems Management ordinance due to project timing. - Savings in training and development expenses, and repairs and maintenance costs.
Youth Development Fund
Expenses for the Youth Development Fund ended the fiscal year at 91 percent of the budget as PRL staff continues to take measures to reduce operational costs to offset the significant Adventure Club revenue shortfall.
14 Other Revenues: Fire Facilities, Public Facilities, and Strategic Improvement
BUDGET TO CUMULATIVE REVENUE COMPARISON
July 1, 2024 – June 30, 2025
FY2023-24 FY2024-25
Actuals Amended
Budget
Cumulative
Revenues Variance % of Budget
Collected
Fire Facilities $ 2,127,727 $ 2,076,253 $ 2,165,103 88,850 104% Public Facilities 6,688,897 6,428,644 7,634,139 1,205,495 119% Strategic Improvement 2,599,327 3,930,534 3,997,060 66,526 102%
The table above shows revenues in the Fire Facilities, Public Facilities, and Strategic Improvement Funds through the fourth quarter of FY2023-24 and FY2024-25. The revenue estimates for these three funds are generally based on a multi-year trend analysis of forecasted single-family, multi-family, and commercial development, as well as prior-year revenue collections.
Revenues for these funds surpassed the budget estimate through year-end due to increased fee collections and higher-than-expected interest revenue. The Strategic Improvement Fund FY2024- 25 amended budget includes a one-time transfer of $1.75 million from the General Fund FY2023- 24 year-end surplus to fund projects that provide an economic benefit to the City.
Top 25 Sales Tax Remitters California sales tax cash receipts increased by 2% from the same quarter last year. In this jurisdiction sales tax cash APPLE STORES receipts decreased by 2.2% from the same quarter last year ARCO AM/PM MINI MARTS due to a decrease of $42,955,000 in Taxable Sales.
AUTONATION HONDA
BMW OF ROSEVILLE Cash Receipts Quarter Annual
CARMAX AUTO SUPERSTORES Roseville -2.2% 1.4%
CHEVRON SERVICE STATIONS Placer Countywide Pool 1.0% 14.3% COSTCO WHOLESALE Placer Countywide -1.8% 2.7%
ECHOPARK AUTOMOTIVE Sacramento Valley Region 0.9% 0.8% FUTURE FORD Statewide 2.0% 0.0%
GMC RELIABLE
HOME DEPOT
Annualized Percent Change in Sales Tax Cash Receipts
LEXUS OF ROSEVILLE
MACY'S DEPARTMENT STORE
MCKESSON MEDICAL -SURGICAL
NIELLO ACURA
NORDSTROM DEPARTMENT STORE
ROSEVILLE CHEVROLET
ROSEVILLE HYUNDAI
ROSEVILLE KIA
ROSEVILLE TOYOTA & SCION
SAFEWAY SERVICE STATIONS
SAM'S CLUB
TARGET STORES
VANDERBEEK MOTORS
WAL MART STORES
Business Activity Quarter Annual Quarter Annual
-7.7% -5.3% 0.5% -0.7%
3.0% 2.4% 0.2% -0.3%
2.4% 0.8% -6.4% -7.0%
1.4% 4.3% -2.4% -2.4%
General Retail (e.g., dept. stores, misc. retail)
Food Products (e.g., markets and restaurants)
Transportation (e.g., new & used autos, gas stations)
Construction (e.g., retail & wholesale construction)
Business To Business (e.g., IT, industrial equip. etc.) -22.3% -6.4% -1.5% -2.2% TOTAL LOCAL BUSINESS ACTIVITY -4.0% -1.5% -1.9% -2.5%
COUNTYWIDE POOL ACTIVITY 0.5% 13.2% 4.2% 3.5%
City of Roseville
Roseville California
Quarterly Report on Sales Tax and Business Activity
2nd Quarter 2025 in Review
-6.0%
0.0%
6.0%
12.0%
18.0%
Roseville Placer Countywide Statewide
Placer Countywide Pool 1.0% 14.3%
Neumo.com
Roseville
Annual Per Capita Sales Tax
Adjusted for Inflation
(Constant 2021 $)
City of Roseville
News
Economic Activity: Real Gross Domestic Product (GDP) increased at an annual rate of 2.5% in the second quarter of 2025. U.S. inflation ticked up to 2.7% in June of 2025, down 6.4 percentage points from its most recent peak of 9.1% in June 2022. California's headline inflation increased to 3.0% year over year as of June 2025, up from 2.7% in August of 2024. (DIR, BEA, BLS, July Finance Bulletin) Employment: The U.S. unemployment rate decreased slightly to 4.1% in June of 2025. California's unemployment rate increased by 0.1 percentage point to 5.4% as of June 2025, 0.4 percentage points higher than the September 2023 rate of 5.0%. (EDD, BLS, July Finance Bulletin) Personal Income:U.S. personal income increased by 4.9% for the second quarter of 2025, compared to the same quarter previous year. Compensation of employees increased by 4.8%, while personal current taxes increased by 7.9% from the previous period, resulting in a net gain of 4.5% in disposable income. (BEA) 2021Q2 $431 2022Q2 $444 2023Q2 $424 2024Q2 $401 2025Q2 $387 $79 $78 $71 $60 $65
$2 $2 $2 $2 $2
$40 $37 $38 $40 $36
$24 $24 $22 $22 $22
$136 $139 $128
$120 $116
$45 $49
$51
$50 $49
$105 $115
$111
$107 $97
General Retail
Food Products
Transportation
Construction
Business To Business
Miscellaneous
County Pool
(Cash Basis)
Neumo.com
City Council
Communication
Meeting Date: 2/4/2026
Item #: VIII.23
File #: 0201
Item ID: 2025-983
Title: Fiscal Year 2025-26 First Quarter Report and Fiscal Year 2026-27 Budget Calendar Contact: Nancy Rothlisberger 916-774-5314 [email protected]
SUMMARY
Staff recommends Council accept the Fiscal Year (FY) 2025-26 First Quarter Report which provides an overview of the General Fund revenues for the first quarter of FY2025-26 (July 1, 2025 – September 30, 2025). The FY2026-27 budget development calendar displays the dates of budget-related meetings and presentations.
RECOMMENDATION
This is an informational item and requires no City Council action.
BACKGROUND
FY2025-26 First Quarter Report
The attached report provides an overview of the General Fund revenues for the first quarter of FY2025-26 (July 1, 2025 – September 30, 2025). General Fund expenditures, major enterprise operating fund revenue and expenditures, and revenues in other selected funds will be included beginning with the FY2025-26 second quarter report.
FY2026-27 Budget Development Calendar
The table below displays the calendar for FY2026-27 budget-related meetings and presentations:
February 4 FY2025-26 Year-End Report; FY2026-27 First
Quarter Report
February 23 City Council Strategic Plan Workshop
March 23-25 City Manager Budget Review Meetings
April 1
• Financial policies presentation
• Long-term liabilities update –
pensions and other post-employment
benefits (OPEB)
April 15
• Position vacancies presentation
• Local Sales Tax Oversight Committee
report presentation
• Electric and Environmental Utilities
budget update presentations
May 6 FY2026-27 Proposed Capital Improvement
Plan (CIP) presentation
May 15 FY2026-27 Proposed Budget delivered to City
Council
May 20 FY2025-26 Second Quarter Report
May 27 City Council Budget Workshop
June 17 Budget Adoption
FISCAL IMPACT
There is no fiscal impact associated with this item.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The FY2025-26 First Quarter Report and FY2026-27 Budget Calendar meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
2. Remain fiscally responsible in a changing world
Respectfully Submitted,
Nancy Rothlisberger, Budget Manager
Scott Pettingell, Finance Director
ATTACHMENTS:
1. FY26 First Quarter Report
REVIEWERS:
Nancy Rothlisberger, Finance Department - Budget Created/Initiated - 12/17/2025 Nancy Rothlisberger, Finance Department - Budget Approved - 12/17/2025 Scott Pettingell, Finance Department - Budget Approved - 12/19/2025 Kelly Aye, City Attorney Department Approved - 1/5/2026 Katrina Six, City Clerk Department Approved - 1/6/2026
Ryan DeVore, City Manager Department - Assistant City Manager Approved - 1/6/2026 Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 1/21/2026 Michelle Sheidenberger, City Attorney Department Approved - 1/21/2026 Dominick Casey, City Manager Department - City Manager Approved - 1/21/2026 Katrina Six, City Clerk Department Final Approval - 1/22/2026
1 FISCAL YEAR 202 5-26 – FIRST QUARTER REPORT
General Fund Revenues
Overview
This financial report provides an overview of the City’s General Fund revenues for the first quarter of the fiscal year (FY) 202 5-26 (July 1 – September 30, 202 5). General Fund expenditures, major enterprise operating fund revenues and expenditures, and revenues in other selected funds will be included in the second quarter report.
General Fund operating revenues collected through the first quarter total 7 percent of the budget.
This expected result is consistent with prior years and reflects the timing of receiving some of the more significant tax revenue sources .
The following factors should be taken into consideration when analyzing this information:
• Sales and Use Tax is the largest General Fund revenue source. The City only receives one month of this revenue in the first quarter of each fiscal year due to the California Department of Tax and Fee Administration (CDTFA) processing timelines. First -quarter revenues reflect taxable sales for July 202 5 (received in September ). • Property Tax is the second largest General Fund revenue source . Most of this revenue is received from Placer County in the third (mid- January) and fourth (mid -May) quarters , thus there are no significant property tax revenues to report in the first quarter. • Transient Occupancy Tax (TOT), or hotel tax , for the first quarter is derived from payments received through August; therefore, only two months of revenues are reflected . • Other Revenues , including reimbursements from the state, property transfer tax, business license tax, and a variety of fees and charges , are tracking approximately 10 percent lower than estimates through the end of the first quarter , which is expected and consistent with prior years due to the timing associated with receiving th ese revenues.
Year-End Forecas t
General Fund revenues through the first quarter of FY202 5-26 are trending to end the year in line with the adopted budget . Economists and t he City’s sales tax consultant forecast that the California economy is expected to begin recovering in late 2026, but with near-term conditions remaining constrained. The unemployment rate in California is forecast ed to peak at approximately 6 percent in early 2026 , driven largely by higher unemployment in the technology sector . Employment growth is projected to remain near zero for non -farm payrolls through 2025 and 2026 before rebounding to an estimated 2 percent total employment growth in 2027.
2 Consumer spending continues to be influenced by uncertainty related to tariffs and inflation, as well as rising household costs such as i nsurance, groceries, healthcare, education, and energy .
These factors, in conjunction with cautious business and government spending, have directly affect ed the growth rate of sales tax revenues (both Bradley Burns and Measure B) , which are expected to experience minimal growth in FY2025 -26. Initial forecasts suggest that sales tax revenues may finish the fiscal year approximately 3 percent ($3.3 million ) above estimates. This represents growth of 2.7 percent ($2.7 million ) compared to FY2024-25.
Recent County estimates indicate that property tax revenues will exceed projections by approximately $0.4 million. Hotel tax revenues are expected to come in slightly below the budget estimate based on the consultant’s latest forecast . Despite a decline in single -family dwelling permits, building permit revenues are expected to end the year at or slightly below the FY2025 -26 budget. Plan check revenue s are tracking with budget at the end of the first quarter and are anticipated to remain steady through the fiscal year . These revenues are expected to meet the FY2025 -26 budget target. Additionally, Engineering inspection fees revenues exceed the budget through the first quarter and are anticipated to meet the FY2025 -26 budget target. Recreation program revenues are continuing last year's positive trend and are also expected to meet the FY2025 -26 budget target .
Staff will keep the City Council updated on revenue and expenditure forecasts throughout the remainder of the fiscal year.
General Fund Operating Revenues
The following displays cumulative General Fund operating revenues through the first quarter and a revenue budget to actual comparison for FY2025 -26.
BUDGET TO CUMULATIVE REVENUE COMPARISON
July 1, 2025 – September 30, 2025
Revenue Type Amended
Budget
Cumulative
Revenues
Balance
Remaining
% of
Budget
Collected
Sales and Use Tax – Bradley-Burns $ 70,900,000 $ 5,485,279 $ (65,414,721) 8% Sales and Use Tax – Measure B 29,500,000 2,360,671 (27,139,329) 8% Sales and Use Tax – State Aid for Public Safety 1,616,000 289,853 (1,326,147) 18% Property Tax 80,546,000 27,517 (80,518,483) 0% Transient Occupancy Tax (TOT) 7,400,000 1,309,450 (6,090,550) 18% Parks, Recreation & Libraries Programs 6,308,901 1,745,714 (4,563,187) 28% Building Permits 3,277,178 707,275 (2,569,903) 22% Plan Check Fees 2,742,691 668,625 (2,074,066) 24%
3 Engineering Inspection Fees 387,623 220,197 (167,426) 57% Other Revenues 15,957,339 2,328,913 (13,628,426) 15% TOTAL $ 218,635,732 $ 15,143,495 $ 203,492,237 7%
General Fund operating revenues collected through the first quarter total 7 percent of the budget , primarily due to the timing associated with receiving some of the significant tax revenue sources.
Notable variances are described below.
Bradley Burns and Measure B Sales Tax
The City's Bradley Burns and Measure B sales tax revenues through the first quarter total 8 percent of their respective budget s and reflect taxable sales through July 2025. Since then, the City has received sales tax distributions through the end of Octo ber totaling $ 23,602,449 (Bradley Burns) and $9 ,994,597 (Measure B ).
The City's sales tax consultant ’s most recent analysis indicate s that these revenues are expected to remain stable with no growth projected for the next two quarters of FY2025 –26. This analysis includes a year-end forecast with conservative, most -likely, and optimistic scenarios (see chart below). The most -likely forecast indicates that sales tax revenues may end the year at $73.2 million for Bradley Burns and $ 30.5 million for Measure B .
8%
8%
18%
0%
18%
28%
22%
24%
57%
15%
7%
0% 20% 40% 60% 80% 100%
Sales and Use Tax - Bradley Burns
Sales and Use Tax - Measure B
Sales and Use Tax - Public Safety
Property Tax
Transient Occupancy Tax (TOT)
Parks, Recreation & Libraries
Building Permits
Plan Check Fees
Engineering Inspection Fees
Other Revenues
Total
General Fund Operating Revenues
Cumulative Percentage of Revenue Collected
July 1, 2025 – September 30, 2025
Amended
Budget
% of Revenue Collected
4 Revenue Type Conservative Most-Likely Optimistic
Sales and Use Tax - Bradley Burns $ 71,898,231 $ 73,215,377 $ 74,532,531 Sales and Use Tax - Measure B 29,788,155 30,519,078 31,250,055 TOTAL $ 101,686,386 $ 103,734,455 $ 105,782,586
Assuming sales tax revenues reflect the most -likely scenario, the General Fund would end the year with a sales tax s urplus of approximately $ 3.3 million.
Budget Versus Updated Forecast Amended Budget Updated Forecast (Most-Likely) Variance
Sales and Use Tax - Bradley Burns $ 70,900,000 $ 73,215,377 $ 2,315,377 Sales and Use Tax - Measure B 29,500,000 30,519,078 1,019,078 TOTAL $ 100,400,000 $ 103,734,455 $ 3,334,455
The graphs below show Bradley Burns and Measure B sales tax revenues for July compared to the budget and the projected year -end results.
The City's sales tax consultant ’s detailed report (included at the end of this report ) provides a list of the top 25 sales tax remitters, a cash receipts summary, and sales tax data by economic category.
Bradley Burns Sales & Use Tax Revenues Measure B Sales & Use Tax Revenues $70.9
$5.5
$73.2
$0
$10
$20
$30
$40
$50
$60
$70
$80
Budget Actuals Year-end
Projection
Millions
Most-Likely
$74.5 Optimistic
$71.9 Conservative
$29.5
$2.4
$30.5
$0
$5
$10
$15
$20
$25
$30
$35
Budget Actuals Year-end
Projection
Millions
Most-Likely
$31.3 Optimistic
$29.8 Conservative
5 Property Tax
Property tax revenue for FY202 5-26 is
based on assessed valuation as of
January 1, 202 5. The City receives most
of this revenue in the third and fourth
quarters of the fiscal year. According to
data provided by the County Auditor -
Controller's Office, staff anticipate
property tax collections of $ 80.9 million,
exceeding budget estimates by
approximately $ 0.4 million.
Transient Occupancy Tax (TOT)
The City's TOT revenues (also known as
hotel tax ), are tracking on budget through the
end of the first quarter with collections of
$1.3 million for July and August . TOT
collected through October totals $2.5 million
(34 percent of the budget estimate ).
According to the latest consultant forecast ,
hotel tax revenues will end the year slightly
lower than the budget target for FY202 5-26,
at $7.24 million .
Parks, Recreation & Librar ies (PRL) Programs
PRL program revenues are at 28 percent through the first quarter . It is typical that these revenues outpace the budget in the first quarter due to the seasonality of programming. Based on the current results, staff anticipate PRL is on track to meet its budget .
$80.5
$0.0
$80.9
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Budget Actuals Year-end
Projection
Millions
Property Tax Revenues
(through September 30, 2025)
$7.4
$1.3
$7.2
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
Budget Actuals Year-end
Projection
Millions
Transient Occupancy Tax (TOT)
(through September 30, 2025)
6 Building Permits, Plan Check Fees, Engineering
Inspection Fees
Building permit revenue for the first quarter of FY2025-26 is slightly below budget , primarily due to a decrease in single -family and multi-family dwelling building permits. Single -family dwelling permits have declined as development continues toward buildout within the remaining West Roseville specific plans. Despite this decrease, staff anticipates building permit revenue will remain relatively consistent throughout the fiscal year, supported by steady commercial building permit activity. With several large commercial projects currently in progress , revenues are expected to end the year at or slightly below budget.
Plan check revenue s are on budget at the end of the first quarter, and staff anticipates revenues will remain steady throughout the fiscal year. Engineering inspection fees are over budget through the first quarter, largely due to inspection activity associated with the Bosch project; however, staff anticipates these revenues will moderate as the year progresses.
Other Revenues
Other revenues include reimbursements from the state, development reimbursement activity, property transfer tax, business license tax, rental payments , animal licensing, passport processing, permit franchise, and other fees and charges. As of the end of the first quarter, revenues collections in this category represent approximately 15 percent of the budget estimate .
Staff anticipate that collections will end the year on target as this level of revenue is consistent with historical collection patterns at this point in the fiscal year.
Top 25 Sales Tax Remitters California sales tax cash receipts increased by 4.5% from the same quarter last year. In this jurisdiction sales tax cash APPLE STORES receipts increased by 9.8% from the same quarter last year ARCO AM/PM MINI MARTS due to a increase of $159,169,000 in Taxable Sales.
AUTONATION HONDA
BMW OF ROSEVILLE Cash Receipts Quarter Annual
CARMAX AUTO SUPERSTORES Roseville 9.8% 5.3%
CHEVRON SERVICE STATIONS Placer Countywide Pool 19.7% 22.1% COSTCO WHOLESALE Placer Countywide 4.5% 4.9%
ECHOPARK AUTOMOTIVE Sacramento Valley Region 4.4% 2.8% FUTURE FORD Statewide 4.5% 2.1%
GMC RELIABLE
HOME DEPOT
Annualized Percent Change in Sales Tax Cash Receipts
LEXUS OF ROSEVILLE
MACY'S DEPARTMENT STORE
MCKESSON MEDICAL -SURGICAL
NIELLO ACURA
NORDSTROM DEPARTMENT STORE
ROSEVILLE CHEVROLET
ROSEVILLE HYUNDAI
ROSEVILLE KIA
ROSEVILLE TOYOTA & SCION
SAFEWAY SERVICE STATIONS
SAM'S CLUB
TARGET STORES
VANDERBEEK MOTORS
WAL MART STORES
Business Activity Quarter Annual Quarter Annual
4.9% -3.2% 2.7% 0.3%
3.9% 3.0% -0.9% -0.3%
-4.4% 1.0% -4.2% -5.4%
-7.1% 0.0% -2.8% -2.1%
General Retail (e.g., dept. stores, misc. retail)
Food Products (e.g., markets and restaurants)
Transportation (e.g., new & used autos, gas stations)
Construction (e.g., retail & wholesale construction)
Business To Business (e.g., IT, industrial equip. etc.) 6.3% -4.5% -3.1% -1.7% TOTAL LOCAL BUSINESS ACTIVITY 0.8% -0.7% -1.2% -1.7%
COUNTYWIDE POOL ACTIVITY 25.7% 22.7% 24.1% 12.4%
City of Roseville
Roseville California
Quarterly Report on Sales Tax and Business Activity
3rd Quarter 2025 in Review
-6.0%
0.0%
6.0%
12.0%
Roseville Placer Countywide Statewide
Placer Countywide Pool 19.7% 22.1%
Neumo / MuniServices
Roseville
Annual Per Capita Sales Tax
Adjusted for Inflation
(Constant 2021 $)
City of Roseville
News
Economic Activity: U.S. inflation ticked up to 3.0% in September of 2025, down 6.1 percentage points from its most recent peak of 9.1% in June 2022. California's headline inflation increased to 3.3% year over year as of August 2025, up from 2.7% in August of 2024. (DIR, BEA, BLS, November Finance Bulletin)
Employment: The U.S. unemployment rate increased slightly to 4.4% in September of 2025. California's unemployment rate increased by 0.4 percentage point to 5.5% as of August 2025, 0.5 percentage points higher than the September 2023 rate of 5.0%. (EDD, BLS) Personal Income:U.S. personal income increased by 5.5% for the third quarter of 2025, compared to the same quarter previous year. Compensation of employees increased by 5.4%, while personal current taxes increased by 8.6% from the previous period, resulting in a net gain of 5.1% in disposable income. (BEA) 2021Q3 $450 2022Q3 $451 2023Q3 $425 2024Q3 $404 2025Q3 $395 $81 $77 $69 $59 $69
$2 $2 $2 $2 $3
$40 $38 $39 $41 $38
$25 $25 $23 $23 $22
$142 $140
$129 $120 $115
$47 $51
$52
$51 $50
$112 $118
$110
$107 $98
General Retail
Food Products
Transportation
Construction
Business To Business
Miscellaneous
County Pool
(Cash Basis)
Neumo / MuniServices