Roseville Electric Building,
116 S. Grant Street, 1st Floor
roseville.ca.us
The City of Roseville welcomes your participation.
Meeting Schedule: Regular meetings of the City Council are held on the first and third Wednesday of each month at 6:00 p.m.
Two Public Comment Periods for Non-Agenda Items: A total of twenty-five (25) minutes is allotted for public comments. At the beginning and end of the meeting, each speaker has three (3) minutes to address the Mayor/Chair on issues that are not listed on the agenda and are within the City’s jurisdiction. Please submit a yellow speaker card to the City Clerk before the item is heard if you wish to make a comment. You will still have an opportunity to comment if you haven’t filled out a yellow speaker card.
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Krista Bernasconi, Mayor
Karen Alvord, Vice Mayor
Bruce Houdesheldt, Councilmember
Tracy Mendonsa, Councilmember
Pauline Roccucci, Councilmember
Dominick Casey, City Manager
Michelle Sheidenberger, City Attorney
Carmen Avalos, City Clerk
AGENDA
City Council /Housing Authority
/Finance Authority Meeting
February 4, 2026
6:00 PM
Roseville Electric Building,
116 S. Grant Street, 1st Floor
I. CALL TO ORDER
II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. MEETING PROCEDURES
V. PRESENTATIONS
1. Resolution — Woodcreek High School Varsity Football Team Summary: Recognize, commend and congratulate the Woodcreek High School Timberwolves Varsity Football Team, its administration, its coaches, student-athletes, and supporters, for winning the Sac–Joaquin Section Championship, achieving a milestone during the 2025 season, and for representing the City of Roseville with Timberwolves pride.
CONTACT: Arleta Wagenhals 916-774-5200 [email protected]
2. Proclamation - Lunar New Year
Summary: Proclaim and recognize Lunar New Year on February 17, 2026 and encourage all residents and community organizations to honor the traditions, contributions, and community spirit of Asian American and Pacific Islander families, organizations, and small businesses throughout the city.
CONTACT: Arleta Wagenhals 916-774-5200 [email protected] VI. PUBLIC COMMENTS
This is the first opportunity to make a public comment on non-agenda items.
VII. CONSENT CALENDAR
3. Community Facilities Districts - Budget Adjustment (FINANCE DEPARTMENT) Summary: Staff recommends approval of the Community Facilities Districts budget adjustments which aligns the budgets with the FY2025-26 amounts submitted to Placer County for the property tax roll. All affected funds have sufficient fund balance to absorb these adjustments.
CONTACT: Jeannine Thrash 916-774-5473 [email protected] The City Council will consider the recommendation to:
a. Adopt Ordinance No. 7040 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure.
4. Annual Comprehensive Financial Report and Other Audit Reports for the Fiscal Year ended June 30, 2025 (FINANCE DEPARTMENT)
Summary: Staff recommends Council receive three informational financial reports for the fiscal year ended June 30, 2025, along with two required auditor communication letters. These items have no impact on the City’s General Fund.
CONTACT: Teri Quinlan 916-774-5316 [email protected] The City Council will consider the recommendation to:
a. This item requires no Council action and is for information purposes only.
5. Roseville Finance Authority - Budget Adjustment (FINANCE DEPARTMENT) Summary: Staff recommends approval of a Roseville Finance Authority budget adjustment. This budget adjustment appropriates $53,401 for the Crocker Ranch and Stoneridge bonded community facilities districts and transfers $434,555 to the Citywide Park Fund to support the loan repayment of the Harry Crabb Park Phase 2 project. There is sufficient fund balance in the fund to accommodate the budget adjustment.
CONTACT: Jeannine Thrash 916-774-5473 [email protected] The City Council will consider the recommendation to:
a. Adopt Finance Authority Resolution No. 26-2 authorizing amendments to the FY2025-26 budget.
6. Fiscal Year 2025-26 - Budget Adjustments - Citywide Park & Recycled Water Construction Funds (FINANCE DEPARTMENT)
Summary: Staff recommends approval of budget adjustments for the Citywide Park Fund and the Recycled Water Construction Fund. The proposed adjustments transfer funds into the Citywide Park Fund, reflecting savings from a prior Roseville Finance Authority refunding and increase revenues in the Recycled Water Construction Fund to recognize Community Facilities District funding received pursuant to developer agreement obligations. The recommended budget adjustments increase available fund balances through a transfer to the Citywide Park
Fund of $434,555 and additional revenues into the Recycled Water Construction Fund totaling $154,380.
CONTACT: Jeannine Thrash 916-774-5473 [email protected] The City Council will consider the recommendation to:
a. Adopt Ordinance No. 7039 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure.
7. HOUSING AUTHORITY/CITY COUNCIL – Homeless Housing, Assistance and Prevention Program - Grant Agreement and Budget Adjustment (ECONOMIC DEVELOPMENT DEPARTMENT -
HOUSING)
Summary: Staff recommends approval of the Homeless Housing, Assistance, and Prevention grant agreement with the Homeless Resource Council of the Sierras to utilize $110,000 in grant funds to stabilize housing for Emergency Housing Voucher (EHV) assisted households during the program wind-down period. Staff also recommends approval of a budget adjustment in the amount of $110,000 to extend EHV funding. This action will have no impact on the City’s General Fund.
CONTACT: Trisha Isom 916-746-1239 [email protected] The City Council will consider the recommendation to:
a. Adopt Housing Authority Resolution No. 26-1 approving a grant agreement between Homeless Resource Council Of The Sierras and Roseville Housing Authority.
b. Adopt Housing Authority Resolution No. 26-2 approving a budget adjustment for fiscal year 2025-26.
8. Corporation Yard Skylight Replacement - Contract Purchase Agreement (PUBLIC WORKS
DEPARTMENT - FACILITIES)
Summary: Staff recommends approval of a contract purchasing agreement with MCM Roofing Company Inc. in the amount of $372,172.50 to provide 146 skylight replacements at five buildings located at the City's Corporation Yard, under the direction of the Public Works Department's Facilities Division. The existing skylights are at the end of life. Funding is included in several project budgets funded by Fleet, Facilities Rehabilitation, Roseville Electric, Environmental Utilities, and Alternative Transportation. Staff requests an additional 10% change order authority in the amount of $37,217.25.
CONTACT: Andre Baranov 916-774-5342 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-024 approving a contract purchase agreement, by and between the City of Roseville and MCM Roofing Company Inc., and authorizing the City Manager to execute it on behalf of the City of Roseville.
9. 2025 Speed Limit Update - Roseville Municipal Code Amendment (PUBLIC WORKS
DEPARTMENT - ENGINEERING - TRAFFIC ENGINEERING)
Summary: Staff recommends City Council introduce for first reading an ordinance amending section 11.28.010 of Chapter 11.28 of Title 11 of the Roseville Municipal Code regarding speed limits. Staff is required to justify a posted speed limit other than 65 miles per hour that is radar enforceable. Local jurisdictions are required to conduct and approve an engineering and traffic survey every seven to fourteen years, or when there is a major change to a roadway. The cost of changing the speed limit signs is included in existing operating budgets.
CONTACT: Jerome Pastor 916-746-1352 [email protected] The City Council will consider the recommendation to:
a. Introduce for first reading an Ordinance amending section 11.28.010 of Chapter 11.28 of Title 11 of the Roseville Municipal Code regarding change in speed limits set by state law.
10. Recycled Water Storage Improvements – New Capital Improvement Project Approval, Project Cancellation and Budget Adjustment (ENVIRONMENTAL UTILITIES DEPARTMENT -
WASTEWATER)
Summary: Staff recommends approval of a new capital improvement project called the Dry Creek Recycled Water Storage Improvements Project, cancellation of the West Roseville Recycled Water Storage Improvements Project, and a budget adjustment associated with these two projects. The new project will be funded by both the Recycled Water Construction Fund and the Wastewater Rehabilitation Fund.
CONTACT: Tracie Mueller 916-774-5688 [email protected] The City Council will consider the recommendation to:
a. Authorize the establishment of a new capital improvement project, the Dry Creek Recycled Water Storage Improvements Project;
b. Authorize the cancellation of an existing capital improvement project, the West Roseville Recycled Water Storage Improvements, and
c. Adopt Ordinance No. 7037 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure.
11. Dry Creek Greenway East Phase 1 Trail Project - Professional Design Services Agreement Amendment and Budget Adjustment (PUBLIC WORKS DEPARTMENT - ENGINEERING - CITY
PROJECT'S)
Summary: Staff recommends approval of an amendment to professional design services agreement with PSOMAS, for engineering and environmental permitting services in the amount of $92,310 for the Dry Creek Greenway East Phase 1 Project and approval of a budget adjustment. The budget adjustment totaling $1,000,000 from the Local Transportation Fund
(LTF) will provide funds for the PSOMAS contract amendment and ongoing construction management services performed by HDR Construction Control Corporation through an existing on-call professional services contract. No General Fund resources are being used for the project.
CONTACT: Cathy Gosalvez 916-774-5396 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-019 approving a third amendment to professional design services agreement, by and between the City of Roseville and Psomas, and authorizing the City Manager to execute it on behalf of the City of Roseville;
b. Adopt Ordinance No. 7034 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure.
12. Solid Waste Compliance – Professional Services Agreement Amendment (ENVIRONMENTAL
UTILITIES DEPARTMENT - STRATEGIC AFFAIRS DIVISION )
Summary: Staff recommends approval of an amendment to the existing professional services agreement with HF&H Consultants, LLC to increase the contract amount to address additional SB 1383 compliance needs. The amendment adds peer review support for the City’s preliminary analysis related to a potential conversion to a three-stream collection system and the development of a material recovery facility and transfer station, expanded technical assistance, compliance evaluation support, and Implementation Record development in response to CalRecycle Jurisdiction and Agency Compliance and Enforcement audit process. The amendment increases the contract by $55,000, resulting in a revised not-to-exceed amount of $124,000 and is included in FY2025-26 Waste Services Operations Fund budget. With the exception of one sub-task A3, the amendment will be funded by the CalRecycle SB 1383 Local Assistance Grant.
CONTACT: Michelle White 916-774-5774 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-027 approving a first amendment to professional services agreement, by and between the City of Roseville and HF&H Consultants, LLC., and authorizing the City Manager to execute it on behalf of the City of Roseville.
13. Historical Data Repository Oracle Software Licensing and Support Services - Purchase Order (ENVIRONMENTAL UTILITIES DEPARTMENT - WASTEWATER)
Summary: Staff recommends approval of a purchase order with Mythics LLC (dba Mythics VIII LLC) utilizing OMNIA Partners Cooperative Contract No. R240202 for the purchase of Oracle licensing and support services for the Supervisory Control and Data Acquisition network’s Historical Data Repository of the Environmental Utilities Department. The total cost for the purchase order is $129,496.48. Funding will be provided from the Environmental Utilities Department’s annual operating budgets and will be split 67% Wastewater Operations and 33% Water Operations.
CONTACT: Katherine Gettings 916-746-1865 [email protected] The City Council will consider the recommendation to:
a. Approve purchase order with Mythics LLC (dba Mythics VIII LLC) utilizing OMNIA Partners Cooperative Contract no. R240202 for the purchase of Oracle licensing and support services for the Supervisory Control and Data Acquisition network’s Historical Data Repository of Environmental Utilities Department.
14. Water Distribution System Improvements Project — Notice of Completion and Budget Adjustment (ENVIRONMENTAL UTILITIES DEPARTMENT - TECHNICAL SERVICES) Summary: Staff recommends approval of the Notice of Completion for the Water Distribution System Improvements Project. The total cost of the construction contract with Lund Construction, Co. is $2,442,205. Funding for this project was included in the Water Rehabilitation Fund. Staff also recommends approval of a budget adjustment in the amount of $43,500 for specialized paving services. Funding is available from the Water Rehabilitation Fund budget.
CONTACT: Jonathan Cummings 916-774-5566 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-020 accepting the Public Work known as the Water Distribution System Improvement Project, approving the “Notice of Completion”, and authorizing the Environmental Utilities Director to execute said notice on behalf of the City of Roseville;
b. Adopt Ordinance No. 7035 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure.
15. Designation of the Law and Regulation Committee Meeting Day and Time (PUBLIC AFFAIRS
AND COMMUNICATIONS DEPARTMENT)
Summary: Staff recommends approval of establishing a regular meeting schedule for the City Council’s Law and Regulation Committee. The proposed resolution sets the Committee’s meetings on a quarterly basis, to be held on the third Thursday of April, June, August, and November at 9:00 a.m., beginning in 2026, in accordance with the City Council/Boards, Commissions, and Committees Administrative Standards.
CONTACT: Rob Baquera 916-746-1170 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-021 repealing Resolution No. 25-058 and adopting a 2026 meeting schedule for the Law and Regulation Committee.
16. Prohousing Incentive Pilot Program – Application for Funding (ECONOMIC DEVELOPMENT
DEPARTMENT - HOUSING)
Summary: Staff recommends approval of an application to the State of California Housing and Community Development Department for the Prohousing Incentive Program (PIP) in the amount of $1,210,000 to assist with affordable housing development and to execute the necessary application, standard agreement and relevant documents for the PIP grant program from the California Department of Housing and Community Development. The recommended action does not impact the City's General Fund.
CONTACT: Trisha Isom 916-746-1239 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-022 authorizing application for, and receipt of, Prohousing Incentive Pilot Program funds.
17. Occupational Health Services - Professional Services Agreements (HUMAN RESOURCES
DEPARTMENT)
Summary: Staff recommends approval of professional services agreements with Kaiser Foundation Health Plan, Inc. and Occupational Health Centers of California, a Medical Corporation dba Concentra Medical Centers, for city-wide occupational health services. The total budget for the Kaiser agreement is $100,000 annually and the Concentra agreement is budgeted for $450,000 annually. These occupational medical costs are included in the Fiscal Year 2025-26 budget and will be incorporated in future proposed budgets.
CONTACT: Evelyn Bowers 916-774-5213 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-025 approving a professional services agreement, by and between the City of Roseville and Kaiser Foundation Health Plan, Inc., and authorizing the City Manager to execute it on behalf of the City of Roseville.
b. Adopt Resolution No. 26-026 approving a professional services agreement, by and between the City of Roseville and Occupational Health Centers of California dba Concentra Medical Centers, and authorizing the City Manager to execute it on behalf of the City of Roseville.
18. Community Development Block Grant Fund - Budget Adjustment (ECONOMIC DEVELOPMENT
DEPARTMENT - HOUSING)
Summary: Staff recommends approval of a budget adjustment for the FY2025-26 Community Development Block Grant Fund to increase both expenditures and revenue by $484,743 for awarded grant funding, unexpended entitlement funding, and estimated program income. This budget adjustment uses Community Development Block Grant funds and will not impact the City's General Fund.
CONTACT: Danielle OConnell 916-774-5277 [email protected] The City Council will consider the recommendation to:
a. Adopt Ordinance No. 7036 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure.
19. Roseville Energy Park Centrifuge Dewatering Equipment Tariff - Sole Source Purchase Order Change Order (ELECTRIC DEPARTMENT - ENGINEERING)
Summary: Staff recommends approval of a change order for import tariffs to the sole source purchase order with Siebtechnik Tema for centrifuge dewatering equipment at the Roseville Energy Park and to grant Electric staff the authority to approve unforeseen change orders up to 10% of the equipment cost. The total cost of the change order is $75,052.84. The new total cost of the purchase order including 10% contingency is $636,385.82. Funding is included in the Electric Department's FY2025-26 budget in the Electric Fund.
CONTACT: Michael Zasso 916-746-1665 [email protected] The City Council will consider the recommendation to:
a. Adopt Resolution No. 26-023 approving a purchase order change order for centrifuge de- watering equipment for the Roseville Energy Park.
20. Minutes of Prior Meetings (CITY CLERK DEPARTMENT)
Summary: Staff recommends approval of the minutes of the January 21, 2026 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 January 21, 2026 City Council Meeting.
END OF CONSENT CALENDAR
VIII. PRESENTATIONS/REPORTS
21. Roseville Police Department - E-Scooters, E-Bikes, and E-Motorcycles (POLICE DEPARTMENT) Summary: Staff recommends Council receive an informational presentation on Electric Devices (E-Scooters, E-Bikes, and E-Motorcycles).
CONTACT: Mark Peinado 916-774-5021 [email protected] The City Council will consider the recommendation to:
a. This item requires no Council action and is for information purposes only.
22. Fiscal Year 2024-25 Fourth Quarter Report and Budget Adjustment (FINANCE DEPARTMENT -
BUDGET)
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.
CONTACT: Nancy Rothlisberger 916-774-5314 [email protected] The City Council will consider the recommendation to:
a. Adopt Ordinance No. 7038 authorizing certain amendments to the fiscal year 2025-26 budget and declaring this ordinance to be immediately effective as an appropriation measure.
23. Fiscal Year 2025-26 First Quarter Report and Fiscal Year 2026-27 Budget Calendar (FINANCE
DEPARTMENT - BUDGET)
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.
CONTACT: Nancy Rothlisberger 916-774-5314 [email protected] The City Council will consider the recommendation to:
a. This is an informational item and requires no City Council action.
IX. PUBLIC COMMENTS
This is the second opportunity to make a public comment on non-agenda items.
X. STAFF/COUNCIL REPORTS
XI. ADJOURNMENT
City Council
Communication
Meeting Date: 2/4/2026
Item #: V.1
File #: 0102-10
Item ID: 2026-26
Title: Resolution — Woodcreek High School Varsity Football Team Contact: Arleta Wagenhals 916-774-5200 [email protected]
SUMMARY
Recognize, commend and congratulate the Woodcreek High School Timberwolves Varsity Football Team, its administration, its coaches, student-athletes, and supporters, for winning the Sac–Joaquin Section Championship, achieving a milestone during the 2025 season, and for representing the City of Roseville with Timberwolves pride.
RECOMMENDATION
Recognize, commend and congratulate the Woodcreek High School Timberwolves Varsity Football Team, its administration, its coaches, student-athletes, and supporters, for winning the Sac–Joaquin Section Championship, achieving a milestone during the 2025 season, and for representing the City of Roseville with Timberwolves pride.
BACKGROUND
Not applicable.
FISCAL IMPACT
Not applicable
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.
Council approval of a resolution meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
5. Support community engagement and advocacy
Respectfully Submitted,
Arleta Wagenhals, City Clerk Technician
Carmen Avalos, City Clerk
ATTACHMENTS:
1. Woodcreek Football Resolution
REVIEWERS:
Heather Blanco, City Manager Department - City Manager Created/Initiated - 1/15/2026 Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 1/15/2026 Michelle Sheidenberger, City Attorney Department Approved - 1/15/2026 Katrina Six, City Clerk Department Final Approval - 1/21/2026
City Council
Communication
Meeting Date: 2/4/2026
Item #: V.2
File #: 0102-06
Item ID: 2026-75
Title: Proclamation - Lunar New Year
Contact: Arleta Wagenhals 916-774-5200 [email protected]
SUMMARY
Proclaim and recognize Lunar New Year on February 17, 2026 and encourage all residents and community organizations to honor the traditions, contributions, and community spirit of Asian American and Pacific Islander families, organizations, and small businesses throughout the city.
RECOMMENDATION
Proclaim and recognize Lunar New Year on February 17, 2026 and encourage all residents and community organizations to honor the traditions, contributions, and community spirit of Asian American and Pacific Islander families, organizations, and small businesses throughout the city.
BACKGROUND
Not Applicable
FISCAL IMPACT
Not Applicable
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.
Council approval of a proclamation meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
5. Support community engagement and advocacy
Respectfully Submitted,
Arleta Wagenhals, City Clerk Technician
Carmen Avalos, City Clerk
ATTACHMENTS:
1. Lunar New Year Proclamation
REVIEWERS:
Arleta Wagenhals, City Clerk Department Created/Initiated - 1/28/2026
Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 1/28/2026 Michelle Sheidenberger, City Attorney Department Approved - 1/28/2026 Katrina Six, City Clerk Department Final Approval - 1/28/2026
City Council
Communication
Meeting Date: 2/4/2026
Item #: VII.3
File #: 0206-03-01 & 0201-
01 Item ID: 2025-952
Title: Community Facilities Districts - Budget Adjustment Contact: Jeannine Thrash 916-774-5473 [email protected]
SUMMARY
Staff recommends approval of the Community Facilities Districts budget adjustments which aligns the budgets with the FY2025-26 amounts submitted to Placer County for the property tax roll. All affected funds have sufficient fund balance to absorb these adjustments.
RECOMMENDATION
Staff recommends that the City Council adopt an ordinance to approve the attached budget adjustments for the City’s community facilities districts (CFDs) to align the district budgets with the FY2025-26 tax levies submitted to Placer County for the property tax roll.
BACKGROUND
The City’s budget is developed and proposed for adoption before the final tax levy amounts for each CFD are determined. The recommended CFD budget adjustment aligns the budgets with the FY2025-26 amounts submitted to Placer County for the property tax roll.
FISCAL IMPACT
Sufficient fund balance exists in all identified funds to support the proposed budget adjustments.
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 adoption of the ordinance 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,
Jeannine Thrash, Management Analyst
Scott Pettingell, Finance Director
ATTACHMENTS:
1. Ordinance 7040
REVIEWERS:
Jeannine Thrash, Finance Department Created/Initiated - 12/15/2025 Scott Pettingell, Finance Department - Budget Approved - 1/16/2026 Kelly Aye, City Attorney Department Approved - 1/22/2026 Katrina Six, City Clerk Department Approved - 1/22/2026 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 - 1/22/2026 Dominick Casey, City Manager Department - City Manager Approved - 1/23/2026 Katrina Six, City Clerk Department Final Approval - 1/23/2026
ORDINANCE NO. 7040
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 Community Facilities Districts True-Up.
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
See attached - Pages 1-2
EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL -
REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
See attached - Pages 1-2
REVENUES/TRANSFERS IN TOTAL -
NET ADJUSTMENT -
FUND BALANCE
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL -
Justification for Budget Adjustment:
The Finance department is requesting a budget adjustment to true up the CFD budgets with the final levy budgets. The City's budget is developed and proposed for approval before the final CFD tax levies are submitted. This budget adjustment also aligns budget to actuals for improved reporting and analysis. 2025-26
Jeannine Thrash, Management Analyst
Jeannine Thrash, Management Analyst
Finance Admin
Attachment to Budget Adjustment
Please complete the cells highlighted in yellow.
EXPENDITURES/EXPENSES/TRANSFERS OUT
1/22/2026
1 ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL -
REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
2104 4050 80251 (288,365) Decrease revenue budget based on final tax levy 2108 4050 80251 (262,465) Decrease revenue budget based on final tax levy 2111 4050 80251 87,983 Increase revenue budget based on final tax levy 2119 4050 80251 (117,923) Decrease revenue budget based on final tax levy 2120 4050 80251 (82,209) Decrease revenue budget based on final tax levy 2121 4050 80251 (106,600) Decrease revenue budget based on final tax levy REVENUES/TRANSFERS IN TOTAL (769,579)
NET ADJUSTMENT 769,579
AVAILABLE RESOURCES
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
2104 3601 00000 000000 (288,365) Decrease Stoneridge CFD 1 SD Fund Balance 2108 3601 00000 000000 (262,465) Decrease Crocker Ranch CFD 2 SD Fund Balance 2111 3601 00000 000000 87,983 Increase Fiddyment Ranch CFD 2 SD Public Services 2119 3601 00000 000000 (117,923) Decrease Westbrook Services District CFD 2 SD Fund 2120 3601 00000 000000 (82,209) Decrease HP Campus Oaks CFD 2 SD Fund Balance 2121 3601 00000 000000 (106,600) Decrease Creekview CFD 2 SD Fund Balance 3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL (769,579)
Attachment to Budget Adjustment
Please complete the cells highlighted in yellow.
EXPENDITURES/EXPENSES/TRANSFERS OUT
1/22/2026
2 ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
7431
5569
80701
43,920
Increase budget for pass through out of
Fund 7431 for DA obligation into Fund
6240
7435
5569
80701
23,430
Increase budget for pass through out of
Fund 7435 for DA obligation into Fund
6240
7436
5569
80701
40,830
Increase budget for pass through out of
Fund 7436 for DA obligation into Fund
6240
7436 6601 82001 131,672 Increase interest budget for first payment to new bond series
7438
5569
80701
34,890
Increase budget for pass through out of
Fund 7438 for DA obligation into Fund
6240
7439
5569
80701
6,540
Increase budget for pass through out of
Fund 7439 for DA obligation into Fund
6240
7440
5569
80701
4,770
Increase budget for pass through out of
Fund 7440 for DA obligation into Fund
6240
EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL 286,052
REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
7420 4780 80701 13,224 Increase revenue for fund 7420 (from RFA Capital)
7421 4780 80701 16,908 Increase revenue for fund 7421 (from RFA Capital)
7422
4780
80701
21,345 Increase revenue for fund 7422 (from
RFA Capital)
7431 4050 80701 78,049 Increase revenue budget based on final tax levy
7436 4050 80701 322,551 Increase revenue budget based on final tax levy
7444 4050 80701 689,921 Increase to revenue for Fund 7444 7416 4780 80701 1,924 Increase revenue for fund 7416 (from RFA Capital)
REVENUES/TRANSFERS IN TOTAL 1,143,922
NET ADJUSTMENT (857,870)
AVAILABLE RESOURCES
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
7416 3601 00000 000000 1,924 Increase Stoneridge Parcel 1 CFD 1 Fund Balance 7420 3601 00000 000000 13,224 Increase Stoneridge West CFD 1 Fund Balance 7421 3601 00000 000000 16,908 Increase Stoneridge East CFD 1 Fund Balance 7422 3601 00000 000000 21,345 Increase Crocker Ranch CFD 1 Fund Balance 7431 3601 00000 000000 34,129 Increase Westbrook CFD 1 Fund Balance 7435 3601 00000 000000 (23,430) Decrease Westpark Federico CFD 1 Fund Balance 7436 3601 00000 000000 150,049 Increase Villages at Sierra Vista CFD 1 Fund Balance 7438 3601 00000 000000 (34,890) Decrease The Ranch at Sierra Vista CFD 1 Fund 7439 3601 00000 000000 (6,540) Decrease Baseline at Sierra Vista CFD 1 Fund Balance 7440 3601 00000 000000 (4,770) Decrease Torrente at Sierra Vista CFD1 Fund Balance 7444 3601 00000 000000 689,921 Increase Amoruso Ranch CFD 1-IA2 Fund Balance FUND BALANCE TOTAL 857,870
City Council
Communication
Meeting Date: 2/4/2026
Item #: VII.4
File #: 0202
Item ID: 2025-991
Title: Annual Comprehensive Financial Report and Other Audit Reports for the Fiscal Year ended June 30, 2025
Contact: Teri Quinlan 916-774-5316 [email protected]
SUMMARY
Staff recommends Council receive three informational financial reports for the fiscal year ended June 30, 2025, along with two required auditor communication letters. These items have no impact on the City’s General Fund.
RECOMMENDATION
Staff recommends that the City Council receive three informational financial reports, along with two required auditor communication letters, for the fiscal year ended June 30, 2025. This item requires no Council action and is for information purposes only.
BACKGROUND
The following informational financial reports and auditor communication letters are included with this communication:
• City of Roseville Annual Comprehensive Financial Report (ACFR) • City of Roseville School-Age Child Care Report
• City of Roseville Independent Accountant's Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit
• City of Roseville Auditor Communication Letter
• City of Roseville Auditor Report on Internal Controls over Financial Reporting and Compliance and Other Matters
The City Charter requires that the City Council engage an independent certified public accounting firm to conduct an annual financial audit of the City. Lance, Soll, and Lunghard, LLP (LSL), a certified public accounting firm, conducted the audits of the City’s financial statements for the fiscal year ended June 30, 2025. The City received an unmodified (clean) opinion on the ACFR. The ACFR conforms to generally accepted accounting principles and the latest applicable Governmental Accounting Standards Board (GASB) Statements. This report continues to reflect the financial stability and proper accounting practices of the City. In addition, the 2024 ACFR received the Government Finance Officers Association's (GFOA) Certificate of Achievement for Excellence in Financial Reporting. GFOA awarded this certificate to the City for the 20th consecutive year, and it is included in the 2025 ACFR.
Separately issued financial statements are required to be completed for the School-Age Child Care Fund (also referred to as the Youth Development Fund) that detail activity in the current fiscal year and year-end balances. The audit included a compliance finding and recommendation regarding attendance records. The
City has implemented additional review procedures, including monthly spot checks of attendance records with supervisors and dual review of quarterly reports prior to submission. These actions will strengthen oversight and ensure compliance with reporting requirements.
The California State Constitution Article XIII-B Appropriations Limit places limits on the growth of expenditures for publicly funded programs. The Independent Accountant’s Report on Applying Agreed- Upon Procedures Related to the Article XIII-B Appropriations Limit for the year ended June 30, 2025 was performed to assist the City in meeting the requirements of Section 1.5 of the Article XIII-B which requires the annual calculation of the appropriations limit to be reviewed as part of an annual financial audit. There were no findings included in this year's report.
The Auditor Communication Letter to the City Council is an additional communication required by audit standards which conveys that there were no significant difficulties or disagreements encountered in dealing with management in performing and completing the audit. The letter also includes information about significant estimates and footnote disclosures included in the financial statements.
The Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters is required communication. The report contains no audit findings.
FISCAL IMPACT
These informational reports have 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 financial reports meet the above criteria and are 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,
Teri Quinlan, Accounting Manager
Scott Pettingell, Finance Director
ATTACHMENTS:
1. City of Roseville Annual Comprehensive Financial Report (ACFR)
2. FY25 Child Care Financial Statements
3. City of Roseville Independent Accountant's Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit
4. City of Roseville Auditor Communication Letter
5. City of Roseville Auditor Report on Internal Controls over Financial Reporting and Compliance and
Other Matters
REVIEWERS:
Teri Quinlan, Finance Department Created/Initiated - 12/17/2025 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 - 1/22/2026 Dominick Casey, City Manager Department - City Manager Approved - 1/23/2026 Katrina Six, City Clerk Department Final Approval - 1/23/2026
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2025
CITY OF ROSEVILLE, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
PREPARED BY
FINANCE DEPARTMENT
7+,63$*(,17(17,21$//</()7%/$1.
CITY OF ROSEVILLE, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................................................ i Organizational Chart .......................................................................................................................................... x Elected Officials ................................................................................................................................................. xi GFOA Certificate ............................................................................................................................................... xii
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT ................................................................................................................... 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................................. 4
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position .......................................................................................................................... 23 Statement of Activities ............................................................................................................................ 24
Fund Financial Statements
Governmental Fund Financial Statements:
Balance Sheet – Governmental Funds .............................................................................................. 28 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................................................................................................. 29 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ................................................................................................ 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ............................................................................................................... 31
Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds .................................................................................. 34 Statement of Revenues, Expenses, and Changes in Net
Position – Proprietary Funds ........................................................................................................ 36 Statement of Cash Flows – Proprietary Funds .................................................................................. 38
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position – Fiduciary Funds ..................................................................... 44 Statement of Changes in Fiduciary Net Position ............................................................................... 45
Notes to the Financial Statements ....................................................................................................................... 47
CITY OF ROSEVILLE, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual – General Fund ............................................................................................................................ 107 Schedule of Changes in the City’s Net Pension Liability and Related Ratios .............................................. 108 Schedule of Contributions - Pensions ............................................................................................................ 112 Schedule of Changes in the City’s Net OPEB Liability and Related Ratios ................................................. 116 Schedule of Contributions – OPEB ............................................................................................................. 118 Modified Approach to Reporting Street Pavement Costs .............................................................................. 121 Notes to Required Supplementary Information ............................................................................................. 122
SUPPLEMENTARY INFORMATION
Non-Major Governmental Funds
Combining Balance Sheet ....................................................................................................................... 126 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances .............................................................................................................. 132 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual – Non-Major Special Revenue Funds:
Landscape and Lighti ng Districts and Services Districts ................................................................. 138 State Gaso line Tax ........................................................................................................................... 139 Traffic Safety ............................................... ...................................................................................... 140 Trench Cut R ecovery ........................................................................................................................ 141 Technology R eplacement ................................................................................................................. 142 Open Space ................................................... ................................................................................... 143 Tree Pr opagation .............................................................................................................................. 144 Grants........................................................ ........................................................................................ 145 Housing Authority Hous ing Choice Voucher .................................................................................... 146 Affordable Housing ........................................................................................................................... 147 Low/Mod Income H ousing Asset ...................................................................................................... 148 Cable TV Peg ................................................. ................................................................................... 149 Police Ev idence ................................................................................................................................ 150 Golf ........................................................................................................................ ............................ 151 Roseville Aquatics Complex Maintenance ....................................................................................... 152
Opioid Sett lement ............................................................................................................................. 153 Non-Major Debt Service Fund:
Roseville Financ e Authority .............................................................................................................. 154 Non-Major Permanent Fund:
Citizens Benefit ............................................. .................................................................................... 155
Non-Major Enterprise Funds
Combining Statement of Net Position ..................................................................................................... 158 Combining Statement of Revenues, Expenses and Changes in Net Position ....................................... 159 Combining Statement of Cash Flows ...................................................................................................... 160
CITY OF ROSEVILLE, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
Internal Service Funds
Combining Statement of Net Position ..................................................................................................... 164 Combining Statement of Revenues, Expenses and Changes in Net Position ....................................... 166 Combining Statement of Cash Flows ...................................................................................................... 168
Private-Purpose Trust Funds
Combining Statement of Fiduciary Net Position ..................................................................................... 174 Combining Statement of Changes in Fiduciary Net Position .................................................................. 175
Custodial Funds
Combining Statement of Fi duciary Net Position ..................................................................................... 178 Combining Statement of Changes in Fiduciary Net Position ................................................................ 182
STATISTICAL SECTION
Net Position by Component ........................................................................................................................... 191 Changes in Net Position ................................................................................................................................ 192 Fund Balances of Governmental Funds ..................................................................................................... 194 Changes in Fund Balances of Governmental Funds .................................................................................... 195 Sales Tax Revenue ........................................................................................................................................ 196 Assessment Roll Values ................................................................................................................................ 197 Property Tax Rates – Direct and Overlapping Governments ........................................................................ 198 Principal Property Taxpayers ......................................................................................................................... 199 Property Tax Levies and Collections ............................................................................................................. 200 Electric Customers and Revenues ................................................................................................................ 201 Residential Energy Prices .............................................................................................................................. 202 Business Energy Prices ................................................................................................................................. 203 Ratio of Outstanding Debt by Type ................................................................................................................ 204 Revenue Bond Coverage - 2014 Redevelopment Project Tax Allocation Bonds ......................................... 205 Revenue Bond Coverage - 2016 Redevelopment Project Tax Allocation Bonds ......................................... 206 Computation of Direct and Overlapping Debt ................................................................................................ 207 Computation of Legal Bonded Debt Margin .................................................................................................. 208 Demographic and Economic Statistics .......................................................................................................... 209 Princ
ipal Employers ....................................................................................................................................... 210 Full-Time Equivalent City Employees by Function ........................................................................................ 211 Operating Indicators by Function/Program .................................................................................................... 212 Capital Asset Statistics by Function/Program ................................................................................................ 213
7+,63$*(,17(17,21$//</()7%/$1.
December 16, 2025
Honorable Mayor, Members of the City Council, and Residents of the City of Roseville:
The Finance Department is pleased to present the Annual Compreh ensive Financial Report (ACFR) of the City of Roseville (City) for the fiscal year that ended June 30, 2025.
Article VII of the City Charter and federal and state law requi res that the City issue an annual report on its financial position and activities, and that the report be audited by an independent firm of certified public accountants. The format and content of this ACFR comply with the principles and standards of accounting and financial reporting adopted by the Governmental Accounting Standards Board (GASB) and contain all information needed for readers to gain a reasonable understanding of the City's financial activities.
Management assumes full responsibility for the completeness and reliability of the information in this report, based upon a comprehensive internal control framework established for this purpose.
The objective of internal controls is to provide reasonable, ra ther than absolute, assurance that the financial statements are free of any material misstatements.
The City's financial statements have been audited by LSL, Certi fied Public Accountants, an independent firm of licensed certified public accountants. The purpose of the audit is to obtain reasonable assurance that the financial statements are free of material misstatements and are fairly presented in conformity with generally accepted accounti ng principles (GAAP). LSL has issued an unmodified opinion on the City's financial statements for the fiscal year ended June 30, 2025. The independent auditors' report is presented as the first component of the financial section of this report.
Management's discussion and analysis (MD&A), which immediately follows the independent auditors' report, provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A is designed to complement this letter of transmittal and should be read in conjunction with it.
THE REPORTING ENTITY AND ITS SERVICES
Roseville is a charter city located in the State of California. The City was incorporated on April 10, 1909, and operates under a Council–Manager form of go vernment. The City Council, which serves as the City's political and legislative body, is e mpowered by the City Charter to establish citywide policy, adopt the annual fiscal year budget, oversee City services, and appoint the City Manager and City Attorney.
i
The City Council consists of five members elected by district t o staggered four-year terms. The Mayor and Vice Mayor are determined by rotation in sequential order among the five districts.
Residents may assist the City Council in formulating government policy by serving on a City commission, committee, or board. The following commissions, committees, and boards act in an advisory capacity to the City Council:
• Board of Appeals
• Design Committee
• Economic Development Advisory Committee
• Grants Advisory Commission
• Law & Regulation Committee
• Library Board
• Local Sales Tax Citizens' Oversight Committee
• Other Post Employment Benefits Trust Review Committee • Parks & Recreation Commission
• Personnel Board
• Placer Mosquito & Vector Control District
• Planning Commission
• Public Utilities Commission
• Senior Commission
• Transportation Commission
Roseville is a full-service city that provides a comprehensive range of municipal utilities and services. These services include police; fire; parks, recreation and libraries; economic development and housing; planning; building and public facility inspection; engineering; streets; electric, water, wastewater and waste services utilities; and general administrative services.
The ACFR presents the financial status of the City and its five component units:
• Roseville Finance Authority (Finance Authority)
• Roseville Natural Gas Financing Authority (RNGFA)
• City of Roseville Housing Authority (Housing Authority) • Successor Agency to the City of Roseville Redevelopment Agency (Successor Agency) • City of Roseville Other Post-Employment Benefits Trust (OPEB T rust)
Component units are separate legal entities included in this report due to significant operational or financial relationships with the City. The Finance Authority, R NGFA, Housing Authority, and OPEB Trust are separate legal entities from the City but have the same governing board. The Successor Agency has a governing board determined by State law that does not report to the City Council. RNGFA and the OPEB Trust issue separate component unit financial statements.
Separate financial statements are not issued for the Finance Authority, the Housing Authority, or the Successor Agency.
ii
LOCAL ECONOMY
Population and Employment
Roseville, the largest city in Placer County, had a population of 158,494 as of January 1, 2025, an increase of 1,190 residents from the prior year according to the California Department of Finance. The City has more than 8,000 businesses that support approximately 90,200 jobs and a resident labor force of over 74,000. The unemployment rate is 4.5 percent, and the median household income is $115,775. Health care and social assistance remain the City’s largest industry sector at roughly 22 percent, followed by reta il at 13 percent, along with food service, government, and construction. Roseville continues to receive recognition for its quality of life, cost of living, strong schools, and overall desirability as a place to live and work.
Residential Development
Residential development activity moderated in fiscal year 2025. Single-family building permits totaled 1,133 units, a decrease from 1,259 the prior year but s till consistent with long-term averages. Finalized single-family units are also projected to d ecline as subdivision activity slows and existing lots are built out. Much of the construction conti nues to occur in the Sierra Vista, Fiddyment Ranch, Creekview, and Amoruso Ranch plan areas. For f iscal year 2025-26, single-family permit issuance is projected to decrease to 618 u nits. Multi-family construction remains strong, with more than 1,500 units underway and additional projects moving through the approval process. As of January 1, 2025, the City had 63,571 completed housing units and more than 2,700 approved units awaiting construction.
Commercial and Industrial Development
Industrial development continues to show steady growth, with approximately 11.7 million square feet of developed space and historically low vacancy rates. Tenant improvements and commercial construction remain active, supported in part by hospital syste m expansions and Robert Bosch Corporation’s long-term investment in the former TSI Semiconductor facility. Bosch plans to invest more than $1.9 billion in upgrades and equipment over the next seven to ten years. Commercial activity is expected to soften somewhat in the office market, w here vacancy rates have risen to about 15.4 percent as hybrid and remote work patterns continue. Retail, restaurant, and personal service activities remain stable as the City’s newer plan areas continue to develop.
BUDGET INITIATIVES
The 2026 budget includes funding to operate the new 10-field Placer Valley Soccer Complex, designed to strengthen the region's position in sports tourism. The complex will host a blend of local, regional, and national tournaments, driving visitors to the com munity while addressing the needs of local sports clubs and organizations for dedicated sports facilities. Groundbreaking for the Placer Valley Soccer Complex took place in June 2023, and the facility opened in November 2025.
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The $63 million complex will feature 10 lighted artificial turf fields, two plaza areas with restrooms, picnic spaces, concessions, and a universally accessible playground. The fields will be available by reservation only and will support local team practices, games, and regional and national tournaments. The playground, however, will remain open to the public. The complex is expected to attract significant sports tourism, complementing Roseville's e xisting amenities, which include aquatics, softball, volleyball, and basketball facilities. Youth sports, a consistently resilient industry, have continued to thrive during economic fluctuations as famili es prioritize opportunities for their children. To further support the development, the City has funded traffic signal improvements near the complex to manage traffic flow and reduce congestion.
The FY2025-26 budget includes a substantial capital investment of $98.7 million across multiple program areas, reflecting the City’s continued commitment to su pporting community growth and maintaining essential infrastructure. Major investments include $41.1 million for electric infrastructure, $19.8 million for water, $13.1 million for wastewater, $9.1 million for parks, recreation and libraries, $7.6 million for public works, $5.9 million for general government, $1.2 million for citywide technology, and $900,000 for public safety. This represents a 10 percent increase from the FY2024-25 adopted budget and supports both new development and the rehabilitation of aging facilities. Notable projects include the purchase of two new combustion power units for Power Plant 2, relay replacements and facility improvements across the electric system, and installation of a new transformer at the Sierra Vista Substation. Funding is also pro vided for enterprise asset management software upgrades, rehabilitation work at several fire stations and the Corporation Yard, and the Westbrook Boulevard signal installation project. Additional planned investments include construction of bike and pedestrian trails, replacement of police radios, rehabilitation of the water treatment plant, construction of aquifer storage and recovery wells, and improvements to the wastewater collections building and wastewater treatment plant. The budget also supports development of new neighborhood parks, upgrades to golf course facilities, enhancements to the Vernon Street Town Square spray ground, a refresh of the Maidu Museum historic site exhibit, replacement of play structures and basketball courts, and rehabilitation of the Roseville Aquatics Complex.
The FY2025-26 budget includes targeted staffing adjustments to meet increasing service demands driven by community growth, evolving regulatory requirements, and City Council priorities. Balancing service levels with long-term fiscal sustainability, the adopte d budget includes a net increase of approximately 20 positions. This reflects 24 new positions, four deletions, and several reclassifications to better align roles with current responsibi lities. Additional positions and reclassifications funded in the budget will be brought to City Council once the related classifications are finalized.
Staffing investments span multiple service areas in the General Fund and in the utility departments.
The Fire Department will add a Fire Plans Examiner to address rising plan review and fire-life safety demands. Parks, Recreation and Libraries will add 5.75 positions to support the Placer Valley Soccer Complex, maintain expanded park assets, and prepare for the new Adventure Club program at Winding Creek Elementary School. Additional supervisory and mai ntenance positions support the transition to a four-region parks management model. The Police Department will add three sworn positions to support an eighth patrol beat in West Roseville, along with reclassifications to enhance records management and real-time crime center operations. Public Works will add staff to support drainage, facility maintenance, fleet operations, and the Intelligent Transportation System as the City’s infrastructure network expands. The Information Technology Department will add two full-time positions and convert a limited-term Office Assistant to a regular role to support customer service systems and network infrastructure.
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Environmental Utilities will add six positions across the Water , Wastewater, and Waste Services utilities, all funded by rate revenues. These roles strengthen operations, regulatory compliance, customer support, and operational technology. The Electric Utility will implement staffing changes to support power plant maintenance, energy market planning, metering technology, and facilities project management. These adjustments include new technical positions, succession-planning reclassifications, and realignment of existing roles to better meet operational needs.
Collectively, these staffing changes ensure that Roseville can continue delivering high-quality, reliable services while maintaining a thoughtful, sustainable a pproach to long-term financial and organizational planning.
The budget includes an $800,000 transfer from the Pension Reser ve Trust Fund to offset a portion of the General Fund’s approximately $3 million increase in CalPERS pension costs for the year. The Pension Reserve Trust Fund continues to serve as a safeguard ag ainst future pension cost increases, with total General Fund contributions now at $21.5 million. Due to slowing sales tax revenue growth and rising General Fund operating costs, the budget does not include funding for CalPERS Additional Discretionary Payments (ADPs) or new transfers to the Pension Reserve Trust.
Over the past several fiscal years, the City has made $18.5 mil lion in ADPs to reduce its unfunded pension liability and strengthen long-term pension sustainability. These actions reflect a deliberate and fiscally responsible approach to managing rising pension obligations while preserving essential public services.
LONG-TERM FINANCIAL PLANNING
The City consistently prepares its budgets with a focus on long-term financial sustainability. This is achieved through adherence to sound financial policies and the establishment of dedicated funds that direct City revenues toward long-term financial needs and priorities. These practices help ensure that funding is available for needs as they arise. These funds include:
Operating Reserves: The City maintains an emergency reserve in its General Fund of 10 percent of operating expenditures. The City also maintains a stabilization reserve in its General Fund of 15 percent of operating expenditures, bringing the tota l operating reserve target to 25 percent of operating expenditures.
Federal Stimulus Reserve: The City established a temporary federal stimulus reserve for the City's allocation of the American Rescue Plan Act (2021 Coronavirus State and Local Fiscal Recovery Funds). The City has adhered to all federal compliance requirements, including the mandate to ensure that funds are fully obligated by December 31, 2024, and fully expended by December 31, 2026.
Rate Stabilization Funds: Roseville Electric Utility maintains a rate stabilization reser ve with a minimum balance requirement of 40 percent of operating expendit ures, a target balance of 65 percent, and a maximum of 90 percent. The purpose of this reserve is to provide the City with sufficient time to respond to significant changes in the cost of electricity without the need for an emergency rate adjustment. In fiscal year 2023, the Elec tric Utility strategically repaid its variable-rate debt and associated interest rate swap, which red uced the reserve balance. As of June 30, 2025, the rate stabilization fund totaled $32.6 millio n, or 16 percent of operating expenditure budget. To rebuild the reserve, the Utility plans to apply interest earnings from the Rate Stabilization Fund, revenues generated from the 0.5 percent rate increase implemented for both residential and commercial customers, and a transfer of su rplus funds from the Electric Operations Fund.
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Fleet Replacement Fund: The City funds the cost of replacement vehicles over the useful life of the vehicle. This ensures that money is available to keep the City's vehicle fleet operating properly and safely.
Strategic Improvement Fund: The City maintains a fund that provides Council with resources for periodic, strategic investments on behalf of the City. This fund has been used to acquire land and construct improvements, primarily in redevelopment areas. This fund is included in the City's General Fund for financial reporting.
OPEB Trust Fund: The City established an irrevocable trust in fiscal year 2011 t o address the City's long-term liability for post-retirement health benefits and transferred $34 million of accumulated resources into the OPEB Trust. In fiscal year 2014, the City negotiated with labor groups to cap future liabilities by creating a Tier III benefit for new hires. Tier III employees are required to set aside a portion of their salary into a Retireme nt Health Savings account. The investments in the OPEB Trust have performed well, achieving a return of
7.76 percent since inception. In fiscal year 2025, the OPEB pla n assets gained 11.75 percent, growing to $177.9 million. With the City's OPEB funding policy, the OPEB unfunded liability is decreasing with increased contributions and investment returns.
Pension Reserve Trust Fund: The City established a Section 115 Pension Reserve Trust in fiscal year 2024 as a reserve against future pension cost increases. The trust is included in the City's General Fund for financial reporting. The Section 115 trust has a balance of $24.1 million in accumulated General Fund resources as of June 30, 2025.
MAJOR ACTIVITIES IN THE CITY
Many of the major activities undertaken in fiscal year 2025 ali gn with the City Council's direction to prioritize projects and funding to support economic stability and strengthen the City's long-term financial position, and to maintain high levels of service throughout the City. Major activities included:
• Electric Utility: Roseville Electric maintained sound financia l performance during the fiscal year while operating in an environment of elevated equip ment costs, supply-chain constraints, and e volving state regulatory requirements. To support the long-term financial stability of the utility and maintain a high level of service reliability, the City implemented two consecutive nine percent electric rate adj ustments in 2024 and 2025. These actions addressed rising fuel and operating costs, renewable energy compliance obligations, and the expiration of a state lease-revenue agreement. As part of this effort, the utility expanded assistance programs for lo w-income and medical baseline customers and established an updated solar buy-back rate.
The utility continued to advance major investments in system re liability and capacity.
Roseville Electric secured a $1.37 million Distributed Electric ity Backup Assets (DEBA) grant from the California Energy Commission to support upgrades to the Department of Water Resources generation units at the Roseville Energy Park. These improvements will increase available output by up to 9.5 megawatts, enhance reliability during extreme grid conditions through 2031, and offset a portion of the $8.89 million total project.
Operational coordination and efficiency improved during the year with the consolidation of staff at the 116 South Grant Street facility.
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The utility continued to implement enhanced infrastructure inspection and maintenance programs, including accelerated pole inspections, and participa ted in statewide mutual-aid and electrification initiatives such as Light Up Nav ajo. Public education and engagement remained priorities, supported by updated exhibits at the Utility Exploration Center and the City’s hosting of the 2025 Public Power Linework ers Rodeo, which brought national participation and economic benefit to the community.
• Environmental Utilities: Environmental Utilities advanced majo r water, wastewater, and solid waste initiatives throughout 2024-25. The department refr eshed the Water Utility strategic plan and completed a new Wastewater Utility strategic plan for 2025–2029, while continuing work on significant infrastructure projects, including two additional ASR groundwater wells, improvements to water interties and pump stations, and completion of the West Side Tanks and Pump Station and a new crew facility. The Pleasant Grove Wastewater Treatment Plant Expansion and companion Energy Recovery Project were completed, supporting renewable fuel production for refuse vehi cles. Staff continued collaborative planning with the Army Corps of Engineers and the Placer County Water Agency (PCWA) on a joint conveyance project to strengthen long- term regional water supply reliability. Water conservation efforts included more than 1,100 home water use audits, 257 rebates, and a partnership with the Westfield Galle ria that removed over 150,000 square feet of turf, saving an estimated 8 million gallons of water annually. The wastewater program treated nearly 6.94 billion gallons of waste water, removed more than 21 million pounds of contaminants, produced 25,597 tons of biosolids for beneficial reuse, and completed major pretreatment program improvements with regional partners.
Technology upgrades at the Barton Road Water Treatment Plant improved operational reliability, and recycled water deliveries totaled 3,376 acre-f eet. Waste Services supported community clean-up and diversion efforts, including an annual neighborhood clean-up event.
• Parks, Recreation and Libraries: The Parks, Recreation and Lib raries Department advanced several capital and operational initiatives in fiscal year 2025. Four new neighborhood parks opened to the community, and renovation work continued across multiple facilities, including improvements at the Roseville Aq uatics Complex, the Mike Shellito Indoor Pool, and several neighborhood parks. Additional rehabilitation projects included basketball court upgrades , new monument signs, updated technology at the Maidu Community Center, and installation of enhanced radio-freq uency identification systems across all three libraries. Construction was completed on major projects at Weber Park and Johnson Pool, and public outreach progressed for several upcoming neighborhood parks and facility improvements.
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Alongside its capital work, t he department continued implementing its Strategic Master Plan and completed its first Marketing and Public Relations Str ategic Plan. Other accomplishments included installation of a permanent Story Walk at Maidu Regional Park, new public art at Royer Park and increased participation across museum, library, fitness and community programs. Volunteer engagement remained s trong, with more than 1,300 volunteers contributing over 8,300 hours, and the Student Success Initiative reached a majority of third-grade students across local school districts. The department also completed encampment cleanups and debris removal throughout the park system.
Parks, Recreation and Libraries received several recognitions during the year, including being named a National Gold Medal finalist and earning multiple awards for marketing and park design.
• Public Safety: The City continued to strengthen public safety through important accomplishments across both Police and Fire services. The Roseville Police Department led two major coordinated efforts, Operation Grinch and Operati on Heat Wave, to address organized retail theft. These efforts resulted in more than 75 arrests, the recovery of illegal firearms, and the return of thousands of dollars in stolen merchandise.
The department also completed the implementation of in-car camera systems across its fleet, building on earlier deployment of body-worn cameras and further supporting transparency and accountability in police operations. In additi on, a new officer position was added to the Social Services Unit to support homeless veterans, improving access to resources and strengthening outreach to individuals who have served in the armed forces. The Roseville Fire Department continued to advance service reliability and emergency preparedness through ongoing investments in training, equipment, and community risk reduction effort s, including expanded wildfire m itigation work, improvements in response perform ance, and progress on facility and apparatus upgrades. In addition, the Fire Department opened Fire Station 8, located in the Campus Oaks area of the City. Together, these efforts reflect the City’s continued commitment to providing safe, effective, and responsive public safety services.
• Public Works: Public Works delivered significant progress acro ss transit, infrastructure, and operations during fiscal year 2024-25. The City secured $8 million in SB125 funding to support bus electrification and bus shelter upgrades and completed Phase I of the Dry Creek Greenway East trail. Community mobility programs, includi ng Bikefest and Safe Routes to School, continued to engage students and families in bicycle and pedestrian safety. Major facility projects were completed, including tenan t improvements at 116 South Grant Street and the opening of Fire Station 8. Fleet Services earned national recognition for the 20th consecutive year through the ASE Blue Seal of Excellence and continued to rank among the nation’s Leading Fleets. Street Mai ntenance crews advanced core operations by clearing more than 4,400 storm drai n inlets, sealing extensive pavement areas, replac ing signs and delineators, sweeping more than 24,000 miles of streets, and responding to over 1,200 service r equests. Engineering completed or advanced several major transportation projects, in cluding the Roseville Parkway Extension, the Soccer Complex Intersection Improvements , ADA ramp and resurfacing work, and major corridor and multimodal safety projects, while also initiating design on long-term improvements such as the Pleasant Grove Stormwater Retention Basin and the next phases of the Dry Creek Greenway East trail.
viii
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association of the United State s and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financia l Reporting to the City for its ACFR for the fiscal year ended June 30, 2024. The organization of the City's ACFR follows the guidelines set forth by GFOA. This marks the twentieth consecut ive year the City has been recognized for this award.
The city must publish an easi ly readable and efficiently organized ACFR to be awarded a Certificate of Achievement. The report must satisfy both genera lly accepted accounting principles and applicable legal requirements. This ACFR also me ets the program's requirements, and staff will submit it to GFOA to determine its eligibility for the certificate.
The City of Roseville also received the Government Finance Offi cers Association's (GFOA) Distinguished Budget Presentation Award and the California Society of Municipal Finance Officer's (CSMFO) Operating Budget Excellence Award for the fiscal year 2025 budget.
The Finance Department, and especially the Accounting Division, takes great pride in preparing the ACFR. The professionalism, dedication, and teamwork of Accounting staff made this report possible. We also extend our appreciation to employees throughout the Finance Department and across other City departments who contributed to its prepar ation. Finally, we thank the Mayor and City Council for their continued support and for their commitment to responsible and forward-thinking financial stewardship.
Respectfully submitted,
Scott Pettingell
Finance Director
Teri Quinlan, CPA
Accounting Manager
ix
City Council
Mayor/
Council Members
Grants
Advisory
Commission
Library Board
Parks &
Recreation
Commission
City Attorney
City Manager
Personnel
Board
Planning
Commission
Public Utilities
Commission
Senior
Commission
Transportation
Commission
Public Affairs /
Communications
Parks,
Recreation, &
Libraries
Fire
Assistant City
Manager/Chief
Financial Officer
Assistant City
Manager
Environmental
Utilities
Police
Public Works
Finance
Information
Technology
Roseville
Residents
Roseville Electric
Economic
Development
The City Council also acts as
the Board for the following:
Housing Authority
Finance Authority
Natural Gas Financing Authority
Successor Agency
City Clerk
Development
Services Human Resources
x
CITY OF ROSEVILLE
ELECTED OFFICIALS
JUNE 30, 2025
Mayor Krista Bernasconi
Vice Mayor Karen Alvord
Council Member Bruce Houdesheldt
Council Member Tracy Mendonsa
Council Member Pauline Roccucci
xi
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Roseville
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
xii
LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Members of the City Council
City of Roseville, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information o f the City of Roseville, Ca lifornia, (hereafter, the City) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial st atements referred to above pres ent fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial State ments section of our report. We are required to be independent of the City and to meet our other ethical responsib ilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2025, the City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including an y currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Members of the City Council
City of Roseville, California
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to is sue an auditors’ report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted a uditing standards and Government Auditing Standards will always detect a material m isstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted au diting standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skept icism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to th ose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of inter nal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, required pension and other post-employment benefits schedules and modified approach to reporting street pavement costs as listed on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied c ertain limited procedures to the required supplementary information in a ccordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s res ponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
2
To the Honorable Members of the City Council
City of Roseville, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combini ng and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financia l statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 16, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreement s and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit p erformed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Sacramento, California
December 16, 2025
3
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
The following discussion provides readers of the City of Rosevi lle’s (City) financial statements with a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2025.
This discussion should be read in conjunction with the accompan ying Letter of Transmittal and Basic Financial Statements.
FISCAL YEAR 2025 FINANCIAL HIGHLIGHTS
The City’s financial highlights for fiscal year 2025 include the following:
• In fiscal year 2025, the City’s General Fund revenues and other financing sources (uses) were $3.5 million less than expenditures. Expenditures exceeded revenues primarily due to capital spending that was appropriated in prior fiscal years and expended in fiscal year 2025. Revenues increased by $8.7 million compared to the prior year, driv en largely by a $5.7 million in crease in tax revenues, primarily from property taxes, and a $3.0 million increase in the use of money and property category due to higher investment income and the reversal of the temporary market value adjustment on the City’s bond portfolio.
Revenues also exceeded budget estimates by $12.6 million, primarily due to stronger-than-anticipated investment income and the reversal of the temporary market value adjustment, as well as $3.8 million in higher-than-expected tax revenues. Expenditures increased by $32.9 million over the prior year, primarily due to capital investments appropriated in prior years and carr ied forward and expended in fiscal year 2025, as well as higher labor, materials, and services and supplies costs. Despite these increases, expenditures ended the year $43.1 million below budget, reflect ing lower-than-budget operating expenditures across departments and the carryover of capital appropriations into the subsequent fiscal year.
• Measure B, the voter-approved local sales tax measure, generated $29.9 million in General Fund revenue during the fiscal year. These revenues continued to support ess ential services and contributed to maintaining the City’s General Fund Stabilization Reserve to help address future economic uncertainties.
• The City added $4.5 million to its General Fund reserves in fi scal year 2025, maintaining a 25 percent reserve level for emergencies and economic stabilization. In addition, the City committed $4.5 million to the Pension Reserve Trust, bringing the trust’s total balance t o $23.9 million. The City also made a $6.4 million Additional Discretionary Payment (ADP) to CalPERS, consisting of $1.8 million appropriated in fiscal year 2025 and $4.6 million appropriated in fiscal year 2024 but deferred until fiscal year 2025.
• Total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources, as of June 30, 2025, by $4.3 billion, an increase of $361.5 mil lion or 9.2 percent over the prior year, primarily related to infrastructure investments associated with new development in the City.
OVERVIEW OF THE CITY’S ANNUAL COMPREHENSIVE FINANCIAL REPORT
The City’s Annual Comprehensive Financial Report (ACFR) is divided into four sections:
• The introductory section includes the letter of transmittal, a list of City elected officials, and the City’s organizational chart.
• The financial section includes the independent auditors’ repor t, management’s discussion and analysis, the basic financial statements, and the footnotes to the basic financial statements.
• The required supplementary information section presents additi onal information that provides context for the City’s financial statements.
• The supplementary information section includes additional s chedules and information that provide further
detail beyond the basic financial statements and required supplementary information.
• The statistical section is comprised of unaudited data organiz ed to present financial trends, revenue capacity, debt capacity, and demographic and economic information. 4
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Government-wide financial statements provide both long-term and short-term information about the City’s overall financial status. The fund financial statements focus o n individual parts of the City government, presenting the City’s operations in greater detail than the government-wide statements.
The notes to the basic financial statements provide additional information essential to understanding the data presented in the government-wide and fund financial statements. The basic financial statements and notes are followed by the required supplementary information, including Budgetary Comparison Schedule for the General Fund; the Schedule of Changes in Net Pension Liability and Related Ratios; the Schedule of Contributions for the City’s pension plans; the Schedule of Changes in Net Other Post-Employment Benefits (OPEB) Liability and Related Ratios; and the Schedule of Contributions for the City’s OPEB plan.
In addition to these required elements, the report includes combining statements and schedules that provide further detail for the City’s non-major governmental funds, non-major enterprise funds, internal service funds, private purpose trust funds, and custodial funds, each of which is presented in a separate column in the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements report information about the City using accounting methods like those used by private-sector companies. The statement of net po sition presents the City’s assets and liabilities, as well as any defer red outflows and inflows of re sources. The statement of activities presents revenues and expenses for the current year, regardless of when cash is received or paid. These government-wide statements report the City’s net position and how it changed during the fiscal year.
The government-wide financial statements of the City present in formation about the following activities of the City:
• Governmental activities: Most of the City’s basic servi ces are reported as governmental activities.
These services are supported by general City revenues, such as taxes, and by specific program revenues, such as user fees and charges.
• Business-type activities: Certain services provided by the City are funded primarily through customer fees. These include the City’s utility services, local transportation, and school-age childcare program.
Fund Financial Statements
A fund is a group of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. Fund financial statement s provide more detailed information about the City’s largest funds rather than the City as a whole.
The City has three types of fund financial statements:
• Governmental funds: Governmental fund statements pr ovide information about how gen eral government services, such as pol ice, fire, and public works, we re financed in the short-term and what resources remain available for future spending. Most of the City’s basic services are reported in governmental funds, which focus on (1) short-term inflows and o utflows of spendable resources and (2) the remaining year-end fund balances available for spending . Because this information does not reflect the longer-term focus of the government-wide statements , reconciliations are presented that explain the relationship (or differences) between governmental funds and governmental activities.
• Proprietary funds: Proprietary fund s
tatements provide information about services f o r w h i c h customer fees are intended to f inance the costs of operations. Proprietary fund statements, like the government-wide financial statements, provide both the short-term and long-term financial information about activities the City operates in a business-type manner, such as utility services. 5
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
• Fiduciary funds: Fiduciary fund statements provide information about financial relationships where the City acts solely as a trustee or agent for the benefit of others to whom the resources belong. The City is the trustee or fiduciary for assets reported in a private-purpo se trust fund, which, because of trust agreements, can be used only for the trust beneficiaries. The C ity elected to serve as the successor agency for its former redevelopment agency, which was dissolved by state law. The successor agency activity is accounted for in a private-purpose trust fund. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. The City excludes these activities f rom the City’s government-wide financial statements because the City cannot use these resources to finance its operations.
FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS
This analysis focuses on the City’s net position and changes in net position for its governmental and business-type activities for the fiscal year ending June 30, 2025.
The largest portion of the City’s net position is net investmen t in capital assets totaling $3.4 billion. This reflects the City’s investment in capital assets, such as infrastructure, buildings and equipment, net of any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to its residents and businesses.
The restricted portion of the City’s net position totaling $378.3 million represents resources that are restricted for use by external sources. The remaining net position of $502.2 million is unrestricted and may be used to meet the ongoing obligations of the City, subject to the legal and operational purposes of the individual funds in which it is reported.
2025 2024 2025 2024 2025 2024
Assets
$ 476.0 $ 499.4 $ 506.7 $ 485.0 $ 982.7 $ 984.4 186.7 161.9 359.3 295.4 546.0 457.3 1,492.3 1,383.8 2,145.0 2,022.9 3,637.3 3,406.7 2,155.0 2,045.1 3,011.0 2,803.3 5 ,166.0 4,848.4
96.0 102.3 47.4 57.3 143.4 159.6
18.4 19.3 242.4 268.7 260.8 288.0 406.5 428.8 257.8 258.1 664.3 686.9 424.9 448.1 500.2 526.8 925.1 974.9
38.9 43.9 36.5 41.8 75.4 85.7 1,473.9 1,364.5 1,954.5 1,821.2 3,428.4 3,185.7 347.5 328.0 30.8 32.7 378.3 360.7 (34.2) (37.1) 536.4 438.1 502.2 401.0 $ 1,787.2 $ 1,655.4 $ 2,521.7 $ 2,292.0 $ 4,308. 9 $ 3,947.4 Statement of Net Position - Primary Government
As of June 30, 2025 and 2024
Business-type
Activities Total
Cash and investments
Go v ern me n t al
Activities
(in millions)
Unrestricted
Deferred Outflow s of Resources
Long-term debt outstanding
Liab ilities
Other assets
Capital assets
Total Assets
Total Net Position
Other liabilities
Total Liab ilities
Deferred Inflow s of Resources
Net Position
Net investm ent in capital assets
Restricted
6
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Governmental Activities
Government Activities – Net Position
This analysis focuses on the net position and changes in net position of the City’s governmental activities, as presented in the Government-wide Statement of Net Position and Statement of Activities.
The City’s governmental activities net position increased by $1 31.8 million to $1.8 billion as of June 30, 2025, driven primarily by a $109.4 million increase in net investment in capital assets related to infrastructure improvements and land dedications.
2025 2024
Increase /
Decrease
Assets
$ 476.0 $ 499.4 $ (23.4)
186.7 161.9 24.8
1,492.3 1,383.8 108.5
2,155.0 2,045.1 109.9
96.0 102.3 (6.3)
Liab ilities
18.4 19.3 (0.9)
406.5 428.8 (22.3)
424.9 448.1 (23.2)
38.9 43.9 (5.0)
Net Position
1,473.9 1,364.5 109.4
347.5 328.0 19.5
(34.2) (37.1) 2.9
$ 1,787.2 $ 1,655.4 $ 131.8 Total Net Position Net investment in capital assets
Capital assets
Long-term debt outstanding
Unrestricted
Restricted
Deferred Inflow s of Resources
Statement of Net Position - Governmental Activities
(in millions)
Other liabilities
Total Liab ilities
Other assets
Total Assets
Cash and investm ents
As of June 30, 2025 and 2024
Deferred Outflow s of Resources
7
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Capital grants and contributions, which consist primarily of land and infrastructure dedications and community facilities district bond proceeds, decreased by $84.3 million to $82.9 in fiscal year 2025, reflecting fewer infrastructure dedications and community facilities district bond issuances compared to the prior year.
2025 2024
Increase/
Decrease
$ 72.7 $ 69.2 $ 3.5
40.1 34.3 5.8
82.9 167.2 (84.3)
195.7 270.7 (75.0)
211.8 203.7 8.1
Franchise Fees 2.1 2.4 (0.3)
31.9 23.8 8.1
5.0 14.9 (9.9)
250.8 244.8 6.0
446.5 515.5 (69.0)
35.5 31.5 4.0
62.9 78.2 (15.3)
48.5 53.0 (4.5)
Economic development 9.2 4.3 4.9
55.1 59.5 (4.4)
30.3 25.2 5.1
5.9 6.4 (0.5)
52.3 25.2 27.1
11.8 11.8 -
11.9 9.9 2.0
3.1 2.4 0.7
326.5 307.4 19.1
120.0 208.1 (88.1)
Transfers 9.7 10.7 (1.0 ) 129.7 218.8 (89.1)
Net Position-Beginning 1,655.4 1,436.6 218. 8 Restatement 2.1 - 2.1 Net Position-Ending $ 1,787.2 $ 1,655.4 $ 131.8 Changes in Net Position - Gov ernmental Activ ities
As of June 30, 2025 and 2024
(in millions)
Total Revenues
Use of money and property
Miscellaneous
Changes in Net Position after Transfers
Fire
Library
Parks and recreation
Housing assistance payments
Interest on long-term debt
Total Expens es
Annex ation paym ents
Police
Changes in Net Position before Transfers
Expe ns e s
G eneral governm ent
Development services
Public works
Total General Rev enues
Revenues
Program Rev enues
Charges for services
Operating contributions and grants
Capital contributions and grants
Total Program Rev enues
General Rev enues
Taxes
8
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
General revenues, comprised primarily of property and sales taxes, increased by $6.0 million compared to fiscal year 2024, driven largely by higher property tax revenue s resulting from higher assessed property values and development activity. Use of money and property totaled $31.9 million in fiscal year 2025, compared to $23.8 million in fiscal year 2024 reflecting higher interest income. Because general revenues are not allocable to specific programs, they are used to pay the net cost of governmental programs.
Total expenses for governmental activities increased by $19.1 million compared to the prior year, primarily due to increases in labor costs and services, supplies, and mat erials. The most significant increases occurred in general government, development services, and public works, reflecting higher labor, services and supplies, and other operating costs. Police and fire expens es decreased compared to the prior year due to the amortization of deferred inflows related to OPEB, in cluding favorable investment experience, that exceeded current-period OPEB costs.
Governmental Activities – Functional Expenses
The functional expenses chart below includes only current year expenses for governmental activities.
Capital outlay is excluded from functional expenses because it is added to the City's capital assets and depreciated over the useful lives of the assets. As the chart reflects, police accounted for 19.3% ($62.9 million) of total governmental activities expenses; fire accounted for 14.9% ($48.5 million); parks and recreation accounted for 16.9% ($55.1 million); development services accounted for 16.0% ($52.3 million); public works accounted for 9.3% ($30.3 million); general government accounted for 10.9% ($35.5 million); and the remainder accounted for other governmental programs and functions, as shown above. 9
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Business-type Activities
The Statement of Net Position and Statement of Activities prese nt a summary of the City’s business-type activities, which are composed of the City’s enterprise funds.
The net position of business-type activities amounted to $2.5 b illion in fiscal year 2025, an increase of $229.7 million from fiscal year 2024, primarily due to increase s in cash and investments, investments in joint power authorities, and capital assets. Cash and investments increased in 2025 due to higher investment earnings, grant funding, and connection fees. The Wa stewater utility’s in vestment in the South Placer Wastewater Authority (SPWA) reserves increased by $27.4 million in fiscal year 2025. Capital assets increased primarily due to the addition of new utility i nfrastructure in developing areas in West Roseville and a one-time capital contribution valued at $71.6 million in the Electric utility.
2025 2024
Increase/
Decrease
Assets
Cash and investments $ 506.7 $ 485.0 $ 21.7 Other assets 359.3 295.4 63.9
Capital assets 2,145.0 2,022.9 122.1
Total Assets 3,011.0 2,803.3 207.7
Deferred Outflow s of Resources 47.4 57.3 (9.9) Liab ilities
Long-term debt outstanding 242.4 268.7 (26.3) Other liabilities 257.8 258.1 (0.3)
Total Liab ilities 500.2 526.8 (26.6)
Deferred Inflow s of Resources 36.5 41.8 (5.3) Net Position
Net investment in capital assets 1,954.5 1,821.2 133.3 Restricted 30.8 32.7 (1.9)
Unrestricted 536.4 438.1 98.3
Total Net Position $ 2,521.7 $ 2,292.0 $ 229.7 Statement of Net Position - Business-typ e Activ ities (in millions)
As of June 30, 2025 and 2024
10
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024
Increase/
Decrease
$ 395.7 $ 364.6 $ 31.1
29.9 19.6 10.3
170.8 91.7 79.1
596.4 475.9 120.5
34.1 27.3 6.8
17.6 15.8 1.8
- (6.6) 6.6
51.7 36.5 15.2
648.1 512.4 135.7
209.7 189.2 20.5
48.9 43.0 5.9
71.4 64.0 7.4
39.2 38.4 0.8
20.3 20.8 (0.5)
11.6 11.5 0.1
8.8 7.2 1.6
409.9 374.1 35.8
238.2 138.3 99.9
Transfers (9.7) (10.7) 1.0 228.5 127.6 100.9
Net Position-Beginning 2,292.0 2,164.7 127.3 Restatement 1.2 (0.3) 1.5 Net Position-Ending $ 2,521.7 $ 2,292.0 $ 229.7 Total Program Rev enues
General Rev enues
Use of m oney and property
Gain (los s ) on s ale of capital as s ets
Revenues
Program Rev enues
Charges for services
Operating contributions and grants
Capital contributions and grants
Miscellaneous
Changes in Net Position - Business-type Activ ities
As of June 30, 2025 and 2024
(in millions)
Total Revenues
Expe ns e s
Electric
Water
Total General Rev enues
Total Expens es
Changes in Net Position b efore Transfers
Changes in Net Position after Transfers
Wastewater
Waste services
Ros eville Natural Gas Financing Authority
Local transportation
School-age child care
Business-type program revenues and general revenues totaled $64 8.1 million, and business-type expenses and transfe rs out were $419.6 million in fiscal year 2 025. Capital contribution revenue was primarily due to the El ectric utility’s one-time capital contri bution. Use of money and property increased compared to the prior year reflecting interest income and the r eversal of the temporary market value adjustment on the City’s bond portfolio. Major enterprise fund activity is discussed in the Proprietary Funds section that follows.
11
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
FINANCIAL ANALYSIS OF THE FUND STATEMENTS
Governmental Funds
The City’s governmental funds provide information about near-te rm inflows, outflows, and balances of spendable resources.
General Fund
General Fund revenues increased by $8.7 million compared to the prior year fiscal year. Growth occurred across several categories, inc luding taxes ($5.5 million), use of money and propert y ($3.0 million), miscellaneous revenues ($1.6 million), lic enses and permits ($0 .2 million), contributions from developers and others ($0.1 million), and fines, forfeitures, and penalties ($0.1 million). These increases were partially offset by a $1.1 million decrease in charges for services and a $0.8 million decrease in subventions and grants.
Property tax and Bradley-Burns sales tax increased in fiscal ye ar 2025 by $4.1 million and $1.0 million respectively, while the voter-approved Measure B sales tax decr eased slightly ($0.1 million). Other tax revenues, including Transient Occupancy Tax (TOT) and business licenses, exceeded estimates by approximately $0.6 million.
The increase in property tax revenue reflects continued growth in the City and rising assessed property values. Bradley-Burns sales tax revenue increased by approximat ely one percent; however, overall sales tax growth continued to be constrained by broader economic factors. Higher interest rates, softer consumer demand for taxable goods, and an ongoing shift toward non-taxable services contributed to slower taxable sales. These factors have also resulted in slower growth and, in some cases, modest declines such as the slight reduction observed in Measure B revenues.
Total revenues were higher than the final budget by $12.6 million, primarily due to:
• Use of Money and Property exceeding estimates by $7.2 million due to higher-than-anticipated investment returns from higher interest rates.
• Tax revenues exceeding estimates by $3.8 million driven by property tax ($1.6 milli on), Bradley-Burns sales tax ($0.6 million) and Measure B sales tax ($0.7 million). Other tax revenues exceeding estimates by $0.8 million, including business license tax ($0.4 million) and TOT ($0.1 million) revenues.
General Fund expenditures increased by $33.0 million from the p rior year, primarily due to increases in capital outlay, police, fire, and parks and recreation. Expendi tures increased due to higher labor costs, including salaries, health benefits, and pension contributions, as well as the addition of new positions in the fiscal year 2025 budget. These additions included seven positions in parks and recreation, three in police, and one position each in finance and development services.
12
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
12.0%
7.4% 0.4%
4.3%
25.8%
19.7%
2.4%
12.3%
4.7% 10.9%
Expenditures
General government
Development services
Economic development
Public works
Police
Fire
Library
Parks and recreation
Annexation payments
All General Fund departments ended the year within their approp riated expenditure budgets. Total expenditures were less than final budget by $43 million, with the following major drivers:
• Multi-year capital project budgets are inception-to-date budge ts for projects that may take several years to complete, resulting in significant budget-to-actual variances for budgets that roll forward to fiscal year 2026.
• Vacancy savings in most General Fund departments generated significant budget savings during periods when positions were in the recruitment phase.
As of June 30, 2025, the General Fund’s fund balance totaled $1 84.3 million, including $20.7 million classified as nonspendable fund balance, primarily for notes re ceivable; $55.9 million committed for emergency and economic stabilization reserves, $37.0 million committed for capital projects, $24.1 million restricted for the City’s pension trust, $0.6 million classified as assigned fund balance, and the remaining balance of $46.0 million considered unassigned.
Only the unassigned portion of fund balance represents availabl e resources, as the nonspendable, restricted, committed, and assigned portions are constrained by non-cash assets, contracts, open purchase orders, capital projects, and Council-adopted reserves.
Capital Projects Fund – Community Facilities Districts
Community Facilities District (CFD) capital projects fund reven ues exceeded expenditures by approximately $0.97 million in fiscal year 2025. CFD revenues are collected over time to fund eligible future capital infrastructure within the respective districts.
Non-Major Governmental Funds
The rest of the City’s governmental funds are presented in the basic financial statements as non-major governmental funds as required by generally accepted accounting principles. They are individually presented as supplemental information.
13
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Proprietary Funds
Electric Fund
The net position of the Electric Fund increased by $115.8 million in fiscal year 2025, primarily due to higher customer revenue resulting from rate increases and a one-time capital contribution valued at $71.6 million of two combustion turbine generators from the California Depart ment of Water Resources. At June 30, 2025, the fund's net position was $672.0 million, of which $508.8 million wa s invested in capital assets; $9.7 million was restricted for debt service; $6.4 mill ion was restricted for the sustainable energy program; and $147.1 million was unrestricted as to use.
Water Fund
The net position of the Water Fund increased by $41.4 million i n fiscal year 2025, primarily due to an increase in capital assets of $8.2 million and an increase in c ash and investments of $22.7 million. At June 30, 2025, the fund’s net position was $823.1 million, of w hich $665.1 million was invested in capital assets; $5.6 million was restricted for debt service; and $152.4 million was unrestricted as to use.
Wastewater Fund
The net position of the Wastewater Fund increased by $43.9 million in fiscal year 2025, primarily due to an increase in capital assets of $11.2 million and an increase in cash and investments of $9.1 million. At June 30, 2025, the fund’s net position was $917.8 million, of which $698.4 million was invested in capital assets; $4.0 million was restricted for debt service; and $215.4 million was unrestricted as to use.
Waste Services Fund
The net position of the Waste Services Fund increased by $8.9 million in fiscal year 2025, primarily due to an increase in cash and investments of $9.1 million. At June 30 , 2025, the fund’s net position was $42.3 million, of which $6.0 million was invested in capital as sets and $36.3 million was unrestricted as to use.
Roseville Natural Gas Financing Authority
This fund was created as the financing mechanism to purchase prepaid natural gas for the Roseville Energy Park, an electric power plant, through the issuance of revenue bonds. Bonds payable totaling $47.3 million remain due, while the balance of prepaid natural gas as of June 30, 2025, was $45.8 million. At June 30, 2025, the fund’s net position was $2.1 million, of which $5.1 million was restricted for debt service and negative $3.0 million was unrestricted as to use.
Non-Major Enterprise Funds
The remaining enterprise funds are presented in the basic finan cial statements as non-major enterprise funds as required by generally accepted accounting principles. They are presented individually as supplemental information.
CAPITAL ASSETS
As of June 30, 2025, the City had invested $3.6 billion in a br oad range of capital assets, including land, buildings, vehicles, parks and park improvements, roads and bridges, and water, wastewater, and storm drainage transmission and distribution systems, as well as the electric generation and distribution system.
Current year capital asset additions of $329.3 million were off set by current year depreciation expense of $97.7 million and retirements of $1.0 million, for a net increase in capital assets of $230.6 million. The table below presents a summary of the City’s capital assets for governmental and business-type activities:
14
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
2025 2024
Increase/
Decrease
Gov ernmental Activ ities
Land and easements $ 262.3 $ 237.3 $ 2 5.0 Streets (modified approach) 428.5 419.0 9.5 Construction in progress 252.0 205.1 46.9
Buildings 193.9 185.0 8.9
Improvements 56.9 50.1 6.8
Vehicles and equipment 115.7 109.5 6.2
Parks 120.1 119.0 1.1
Landscaping 80.1 77.9 2.2
Bike paths 16.1 16.1 -
Bridges 106.4 86.0 20.4
Culverts 21.0 21.0 -
Curb, gutter, sidewalk, and median curbs 204.6 201.1 3.5 Drain inlets 22.7 22.1 0.6
Soundwall 54.2 53.7 0.5
Storm drains 149.9 148.0 1.9
Traffic signals 2.9 1.8 1.1
Right-to-use leased assets 2.2 2.2 -
Right-to-use subscriptions 7.0 5.0 2.0
Less: accumulated depreciation (604.2) (576.1) (28.1) Gov ernmental Activ ity Capital Assets, Net $ 1,492.3 $ 1,383.8 $ 108.5 2025 2024
Increase/
Decrease
Business-T yp e Activ ities
Land $ 19.5 $ 19.4 $ 0.1 Streets (modified approach) 2.3 2.3 -
Construction in progress 100.0 81.6 18.4
Buildings 48.2 40.2 8.0
Improvements 79.8 71.2 8.6
Vehicles and equipment 84.5 81.3 3.2
Landscaping 2.5 2.4 0.1
Bike paths 6.5 6.5 -
Bridges 12.0 12.0 -
Culverts 0.4 0.4 -
Curb, gutter, sidewalk, and median curbs 1.2 1.2 - Drain Inlets 0.1 0.1 -
Storm drains 0.2 0.2 -
Traffic signals 80.9 78.1 2.8
Plant and substations 534.9 508.9 26.0
Distribution 1,884.2 1,838.2 46.0
Generation 291.2 219.6 71.6
Right-to-use subscriptions 2.2 2.4 (0.2)
Less: accumulated depreciation (1,005.6) (943.1) (62.5 ) Business-T yp e Activ ity Cap ital Assets, Net $ 2,145.0 $ 2,022.9 $ 122.1 Capital Assets
(in millions)
As of June 30, 2025 and 2024
15
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Details on capital assets, current year additions, construction in progress and depreciable lives can be found in Note 8 to the financial statements.
The City depreciates all its capital assets over their estimate d useful lives, except for streets, which are reported using the modified approach. The purpose of depreciation is to spread the cost of a capital asset over the years of its useful life so that all users bear an all ocable portion of the cost of the asset. The modified approach requires the City to employ an asset manageme nt system that maintains a current inventory of these assets, estimates annual costs to maintain them, and assesses the condition of the assets in a replicable way.
The City uses a computerized pavement management system to track the condition levels of street sections. The City’s policy, based on current funding, is to ma intain arterial and collector roadways at an average Pavement Quality Index (PQI) of 72 and residential roadways at an average PQI of 67, based on a study conducted every three years. This policy allows for min or pavement cracking and raveling and minor roughness that could be noticeable to drivers traveling at posted speed.
On June 30, 2025, the City’s streets averaged 74 PQI for arterial and collector roadways and 69 PQI for residential roadways. The City expended $12.7 million on street preservation of its streets in fiscal year 2025, compared to the budgeted amount of $16.2 million.
DEBT ADMINISTRATION
The City made all scheduled repayments of existing debt. Each o f the City’s debt issues is discussed in detail in Note 10 to the financial statements. As of June 30, 2025, the City’s debt portfolio comprised of the following:
2025 2024
Increase/
Decrease
Gov ernmental Activ ity Deb t
Leas e
2013 Public Facilities Refunding, 2.15%, due 8/1/25 1.0 $ 2.0 $ (1.0) $ Certificates of Particip ation
2015 316 V ernon Street Project, 2.00%-5.00%, due 2/1/34 11.9 12.3 (0.4) Add: deferred debt prem ium 0.6 0.6 - Total Gov ernmental Activ ity Deb t 13.5$ 14.9$ (1.4)$ Business-type Activity Debt
Loans
State Revolving Fund Loans, 1.30%, due 6/10/52 $95.7 $98.5 (2.8) $ Total loans 95.7 98.5 (2.8)
Direct Placement Certificates of Participation
Certificates of Particip ation
2015 Water Utility Revenue Refunding, 2.00%-5.00%, due 12/1/29 1 5.4 18.7 (3.3) Add deferred bond prem ium 2.3 2.8 (0.5) Total certificates of p articip ation 17.7 21.5 (3.8) Revenue Bonds
2007 G as Revenue Bonds
4.00%-5.00%, due 2/15/28 45.8 59.7 (13.9) Add: deferred bond prem ium 1.5 2.2 (0.7) 2017A Electric System Revenue Refunding
3.0%-5.00%, due 2/1/37 48.5 49.7 (1.2) Add: deferred bond prem ium 2.9 3.1 (0.2) 2020 Refunding Electric System Revenue Bonds
0.39%-2.08%, due 2/1/34 29.4 32.5 (3.1) Total Revenue Bonds 128.1 147.2 (19.1) T otal Business-typ e Activ ity Deb t 241.5$ 267.2 $ (25.7) $ Outstanding Debt
(in millions)
As of June 30, 2025 and 2024
16
CITY OF ROSEVILLE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Economic Factors
Development patterns in Roseville shifted in fiscal year 2025 a s construction activity began to ease from the elevated levels of the past several years. Single-family residential permits totaled 1,133 units, which is a decrease from the 1,259 permits issued in fiscal year 2024. This reflects slower subdivision activity and the continued buildout of available lots, although the overall level of permitting was consistent with long-term trends. Residential construction continues to be conc entrated in the Sierra Vista, Fiddyment Ranch, Creekview, and Amoruso Ranch plan areas. For fiscal year 2025–26, single-family permit activity is forecast to decline further to roughly 618 units.
Multi-family construction continues to contribute meaningfully to the City’s housing supply. More than 1,500 units are currently under c onstruction, and several additional projects are advancing through the entitlement process. As of January 1, 2025, the City had 63,571 completed housing units and more than 2,700 approved units awaiting construction. While the pace of new development is moderating, the overall pipeline remains strong.
Industrial development continues to perform well. The City has approximately 11.7 million square feet of developed industrial space, supported by historically low vacancy rates and steady tenant improvement activity. Significant investments in advanced manufacturing and healthcare are helping sustain this demand.
Robert Bosch Corporation’s long-term investment in the former TSI Semiconductor facility, which includes more than $1.9 billion in planned upgrades and equipment purcha ses over the next seven to ten years, remains a major driver of activity in this sector.
Commercial development shows a more mixed outlook. Retail, rest aurant, and personal service activity remains stable and continue to benefit from ongoing population growth in the City’s newer areas. The office market, however, is adjusting to continued hybrid and remote wo rk trends. Vacancy rates have increased to approximately 15.4 percent, and near-term office development is expected to soften in response. Tenant improvements and commercial construction continue, but at a more measured pace.
Next Year’s Budget
Total net appropriations in the fiscal year 2026 budget are $82 7 million, of which General Fund budget appropriations are $236.6 million, an increase of three percent compared to the approved fiscal year 2025 budget. The approved fiscal year 2026 General Fund budget incorporates the costs of the City’s negotiated labor agreements and unavoidable cost increases in other spending categories but includes only the most critical augmentations to maintain service levels and address C ouncil priorities given the continued uncertainty surrounding the econom y. In accordance with the Cou ncil’s financial policies, the fiscal year 2026 General Fund budget is balanced, with budgeted expenditure s matched to projected revenues, and includes resources to increase reserves to Council-adopted targ ets. The fiscal year 2026 General Fund budget includes a transfer from the Pension Reserve Trust Fund of approximately $790,000 to help offset rising CalPERS pension costs.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is intended to provide residents, businesses, customers, investors, and creditors with a general overview of the City’s finances. Questions regarding this report may be directed to the City of Roseville Finance Department at 311 Vernon Street, Roseville, C alifornia, 95678, or via email at [email protected].
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18
BASIC FINANCIAL STATEMENTS
19
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20
STATEMENT OF NET POSITION AND STATEMENTS OF ACTIVITIES
The purpose of the Statement of Net Position and the Statement of Activities is to summarize the entire City’s financial activities and financial position.
The Statement of Net Position reports the difference between th e City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets and deferred outflows of resources and summarizes the financial position of all the City’s governmental activities in a single column, and the financial position of all the City’s business-type activities in a single column; these columns are followed by a total column that presents the financial position of the entire City.
The City’s governmental activities include the activities of its General Fund, along with the special revenue, capital projects, debt service, and permanent funds. Since the City’s i nternal service funds predominately service these funds, their activities are cons olidated with governmental acti vities, after eliminating inter-fund transactions and balances. The City’s business-type activities include activitie s of the enterprise funds. Fiduciary activities are excluded.
The Statement of Activities reports increases and decreases in the City’s net position. Consistent with the Statement of Net Position, it is prepared on the full accrual basis, whic h means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs f rom the modified accrual basis used in the governmental fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities and the Statement of Net Position i nclude the financial activities of the City, the Roseville Finance Authority, the City of Roseville Housing Auth ority, and the Roseville Natural Gas Financing Authority, which are legally separate, but are component units of the City because they are controlled by the City which is financially accountable for the activities of these en tities. 21
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22
CITY OF ROSEVILLE, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
Assets:
Cash and Investments in City Treasury 475,996,526$ 506,727,397$ 982,723,923$ Receivables 49,900,652 90,904,834 140,805,486 Notes and loans 65,454,503 92,655,922 158,110,425 Internal balances 2,676,173 (2,676,173) - Prepaid items and other assets 4,415,674 10,520,060 14,935,734 Developer permit fees receivable 15,681,722 - 15,681,722 Due from other governments 2,635,412 - 2,635,412 Inventories 2,597,319 30,573,937 33,171,256 Restricted assets:
Cash and investments in City Treasury - 4,008,709 4,008,709 Cash with fiscal agent 27,974,232 22,081,020 50,055,252 Leases receivable 15,438,614 632,053 16,070,667 Investment in NCPA reserves - 7,199,392 7,199,392 Investment in SPWA reserves - 34,083,270 34,083,270 Prepaid purchased gas - 45,847,175 45,847,175 Derivatives at fair value - 23,318,166 23,318,166 Capital assets not being depreciated 942,761,099 121,849,398 1,064,610,497 Capital assets, net of depreciation/amortization 549,512,731 2,023,195,597 2,572,708,328 Total Assets 2,155,044,657 3,010,920,757 5,165,965,414 Deferred Outflows of Resources:
Deferred charge on refunding - 4,596,679 4,596,679 Deferred outflows related to OPEB 7,795,007 4,289,000 12,084,007 Deferred outflows related to pensions 88,188,851 38,560,111 126,748,962 Total Deferred Outflows
of Resources 95,983,858 47,445,790 143,429,648 Liabilities:
Accounts payable 15,827,587 32,259,972 48,087,559 Accrued liabilities 9,444,829 6,771,317 16,216,146 Unearned revenue 12,362,218 10,932,676 23,294,894 Deposits payable 235,107 3,148,334 3,383,441 Due to other governments 150,757 - 150,757 Compensated absences:
Due in one year 8,761,963 5,534,136 14,296,099 Due in more than one year 8,154,758 4,858,107 13,012,865 Self-insurance claims payable and litigation settlement:
Due in one year 5,660,055 - 5,660,055 Due in more than one year 14,412,109 - 14,412,109 Other long-term liabilities:
Due in one year 2,647,741 25,655,412 28,303,153 Due in more than one year 15,763,070 216,779,187 232,542,257 Long-term liabilities due in one year:
Landfill closure and post closure liability - 254,000 254,000 Long-term liabilities due in more than one year:
Landfill closure and post closure liability - 2,812,000 2,812,000 Net OPEB liability 35,572,337 25,716,000 61,288,337 Net pension liability 295,871,190 165,527,548 461,398,738 Total Liabilities 424,863,721 500,248,689 925,112,410 Deferred Inflows of Resources:
Accumulated increase in fair value of hedging derivatives - 23,318,166 23,318,166 Deferred inflows related to OPEB 23,221,794 12,513,000 35,734,794 Deferred infows related to pensions 1,192,281 - 1,192,281 Deferred inflows related to leases 14,529,418 592,773 15,122,191 Total Deferred Inflows
of Resources 38,943,493 36,423,939 75,367,432 Net Position:
Net investment in capital assets 1,473,863,019 1,954,508,896 3,428,371,915 Restricted
Community development 214,808,369 - 214,808,369 Capital projects 92,848,824 - 92,848,824 Pension trust 24,138,771 - 24,138,771 Debt service - 24,483,148 24,483,148 Global warming prevention (AB 32) - 6,362,234 6,362,234 Nonexpendable 15,735,046 - 15,735,046 Unrestricted (34,172,728) 536,339,641 502,166,913 Total Net Position 1,787,221,301$ 2,521,693,919$ 4,308,915,220$ June 30, 2025
Primary Government
See Notes to Financial Statements.
23
CITY OF ROSEVILLE, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government 35,465,356$ 8,912,991$ 452,960$ -$ Police 62,867,269 3,391,353 589,378 - Fire 48,469,187 1,178,460 2,629 - Economic development 9,217,184 3,235,939 25,271,416 - Park and recreation 55,134,899 19,191,117 175,654 36,457,716 Public works 30,259,754 3,791,591 13,595,259 45,176,094 Library 5,963,522 - - - Development services 52,331,109 32,939,555 52,285 1,263,358 Annexation payments 11,795,813 - - - Housing assistance payments 11,883,265 - - - Interest on long-term debt 3,094,699 - - - Total Governmental Activities 326,482,057 72,641,006 40,139,581 82,897,168 Business-Type Activities:
Electric 209,646,726 219,329,856 - 91,708,278 Water 48,902,881 46,095,844 - 35,682,329 Wastewater 71,429,967 62,726,834 - 41,924,403 Waste Services 39,230,255 44,216,080 - 1,060,826 Roseville Natural Gas Financing Authority 20,307,199 16,528,513 - - Local Transportation 11,627,657 684,414 29,488,802 400,960 School-Age Child Care 8,742,813 6,087,631 440,029 - Total Business-Type Activities 409,887,498 395,669,172 29,928,831 170,776,796 Total Primary Government 736,369,555$ 468,310,178$ 70,068,412$ 253,673,964$ General Revenues:
Taxes:
Property taxes
Bradley-Burns sales taxes
Local sales taxes
Transient occupancy taxes
Other taxes
Franchise fees
Use of money and property
Miscellaneous revenues
Transfers
Total General Revenues,
and Transfers
Change in Net Position
Net Position at Beginning of Year, as orignially reported Restatement of Net Position - Change in Accounting Principle Net Position at Beginning of Year, as restated
Net Position at End of Year
Program Revenues
See Notes to Financial Statements.
24
Primary Government
Governmental Business-Type
Activities Activities Total
(26,099,405)$ -$ (26,099,405)$ (58,886,538) - (58,886,538) (47,288,098) - (47,288,098) 19,290,171 - 19,290,171 689,588 - 689,588 32,303,190 - 32,303,190 (5,963,522) - (5,963,522) (18,075,911) - (18,075,911) (11,795,813) - (11,795,813) (11,883,265) - (11,883,265) (3,094,699) - (3,094,699) (130,804,302) - (130,804,302) - 101,391,408 101,391,408 - 32,875,292 32,875,292 - 33,221,270 33,221,270 - 6,046,651 6,046,651 - (3,778,686) (3,778,686) - 18,946,519 18,946,519 - (2,215,153) (2,215,153) - 186,487,301 186,487,301 (130,804,302) 186,487,301 55,682,999
98,827,168 - 98,827,168 71,131,698 - 71,131,698 29,880,036 - 29,880,036 7,294,764 - 7,294,764 4,694,529 - 4,694,529 2,043,140 - 2,043,140 31,913,724 34,082,543 65,996,267
4,983,306 17,622,273 22,605,579
9,698,708 (9,698,708) -
260,467,073 42,006,108 302,473,181
129,662,771 228,493,409 358,156,180
1,655,391,291 2,292,010,902 3,947,402,193
2,167,239 1,189,608 3,356,847
1,657,558,530 2,293,200,510 3,950,759,040
1,787,221,301$ 2,521,693,919$ 4,308,915,220$
Net (Expenses) Revenues and Changes in Net Position
See Notes to Financial Statements.
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FUND FINANCIAL STATMENTS
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be major funds by the City in fiscal year 2025. Individual non-major funds may be found in the supplementary information section.
General Fund
The General Fund is used for all the general revenues of the Ci ty not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts f or all financial resources of a governmental unit which are not accounted for in another fund.
Community Facilities Districts
This fund is used to account for the construction of infrastructure improvements, or reimbursement to developers for such improvements, funded by special taxes levied against benefited properties. 27
CITY OF ROSEVILLE, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
Capital
Projects Fund
Total Total
Nonmajor Governmental
General Funds Funds
ASSETS
Cash and investments in City Treasury 133,120,915$ 4,442,188$ 246,797,120$ 384,360,223$ Receivables (net of allowance for uncollectible):
Accounts 27,431,187 32,490 19,434,481 46,898,158 Leases 15,438,614 - - 15,438,614 Due from other governments 1,913 - 2,633,499 2,635,412 Developer permit fees 1,734,314 - 13,947,408 15,681,722 Notes and loans 10,166,351 - 55,288,152 65,454,503 Due from other funds 2,666,811 - - 2,666,811 Prepaids 105,906 - - 105,906 Inventories 655,124 - - 655,124 Advances to other funds 9,727,118 - - 9,727,118 Restricted assets:
Cash and investments with fiscal agents 24,138,771 2,161,079 1,674,382 27,974,232 Total assets 225,187,024$ 6,635,757$ 339,775,042$ 571,597,823$
LIABILITIES
Accounts payable 8,452,630$ 22,672$ 5,063,351$ 13,538,653$ Accrued liabilities 6,022,904 - 2,518,563 8,541,467 Unearned revenues 10,499,115 - 1,862,605 12,361,720 Deposits payable 235,107 - - 235,107 Due to other governments 53 - 150,704 150,757 Due to other funds - - 2,575,209 2,575,209 Advances from other funds - - 11,380,226 11,380,226 Total liabilities 25,209,809 22,672 23,550,658 48,783,139
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 1,166,292 - 69,143,409 70,309,701 Leases 14,529,418 - - 14,529,418 Total deferred inflows of resources 15,695,710 - 69,143,409 84,839,119
FUND BALANCES (DEFICITS)
Nonspendable 20,654,499 - 15,735,046 36,389,545 Restricted 24,138,771 6,613,085 230,734,407 261,486,263 Committed 92,921,067 - - 92,921,067 Assigned 604,840 - 3,162,963 3,767,803 Unassigned 45,962,328 - (2,551,441) 43,410,887 Total fund balances (deficits) 184,281,505 6,613,085 247,080,975 437,975,565 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 225,187,024$ 6,635,757$ 339,775,042$ 571,597,823$ Community
Facilities
Districts
See Notes to Financial Statements.
28
CITY OF ROSEVILLE, CALIFORNIA
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds 437,975,565$ Amounts reported for governmental activities in the Statement of Net Position are different from those reported in the governmental funds above because of the following:
Capital Assets
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 1,364,007,102 Allocation of Internal Service Fund Net Position
Internal service funds are used to charge the costs of certain activities such as insurance, post employment benefits, facility maintenance, and information technology. The net position of the internal service funds are therefore included in governmental activities in the statement of net position. 180,467,871
Long-Term Liabilities
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds:
Direct placement debt and certificates of participation (13,491,148)$ Lease payable (1,736,931)
Subscription payable (1,374,105)
Interest payable (232,883)
Compensated absences (15,200,867)
Net OPEB liability (31,782,337)
Net pension liability (267,582,526) (331,400,797)
Deferred Outflows/(Inflows) of Resources
Deferred outflows related to pensions 81,598,927
Deferred inflows related to pensions (1,192,281)
Deferred outflows related to OPEB 7,316,007
Deferred inflows related to OPEB (21,860,794)
Unavailable revenue in the governmental funds is revenue in the governmental activities 70,309,701 136,171,560 Net Position of Governmental Activities 1,787,221,301$
See Notes to Financial Statements.
29
CITY OF ROSEVILLE, CALIFORNIA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
Capital
Projects Fund
Total Total
Nonmajor Governmental
General Funds Funds
REVENUES
Taxes 189,700,942$ -$ 22,127,253$ 211,828,195$ Licenses and permits 4,723,974 - - 4,723,974 Subventions and grants 1,155,802 - 32,009,779 33,165,581 Charges for services 22,357,106 - 43,640,228 65,997,334 Use of money and property 11,736,429 539,691 14,955,575 27,231,695 Fines, forfeitures and penalties 347,974 - 241,683 589,657 Contributions from developers and others 263,724 - 4,707,825 4,971,549 Miscellaneous revenues 3,353,209 232,075 1,319,380 4,904,664 Revenue from others - 45,167,691 2,742,796 47,910,487 Total revenues 233,639,160 45,939,457 121,744,519 401,323,136
EXPENDITURES
Current:
General government 30,073,055 - 3,081,429 33,154,484 Police 64,406,710 - 3,267,359 67,674,069 Fire 49,254,884 - 2,384,799 51,639,683 Economic development 954,099 - 8,390,685 9,344,784 Parks and recreation 30,843,265 - 18,365,597 49,208,862 Public works 10,839,271 - 7,940,756 18,780,027 Library 6,025,044 - - 6,025,044 Development services 18,425,985 33,385,576 1,083,029 52,894,590 Housing assistance payments - - 11,883,265 11,883,265 Annexation payment 11,795,813 - - 11,795,813 Capital outlay 27,184,241 9,522,943 50,494,208 87,201,392 Debt service:
Principal retirement - - 1,301,916 1,301,916 Interest expense and fiscal charges 59,474 2,061,626 1,016,943 3,138,043 Total expenditures 249,861,841 44,970,145 109,209,986 404,041,972 Excess (deficiency) of revenues
over (under) expenditures (16,222,681) 969,312 12,534,533 (2,718,836)
OTHER FINANCING SOURCES (USES)
Transfers in 18,778,990 - 7,964,515 26,743,505 Transfers out (6,089,526) - (12,456,705) (18,546,231) Proceeds from sale of capital assets 7,440 - - 7,440 Total other financing sources (uses) 12,696,904 - (4,492,190) 8,204,714 Net change in fund balances (3,525,777) 969,312 8,042,343 5,485,878 Fund balances-beginning 187,807,282 5,643,773 239,038,632 432,489,687 Fund balances-ending 184,281,505$ 6,613,085$ 247,080,975$ 437,975,565$ Community
Facilities
Districts
See Notes to Financial Statements.
30
CITY OF ROSEVILLE, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds 5,485,878$ Amounts reported for governmental activities in the statement of activities are different from those reported in the governmental funds because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. 90,003,553$ Contributed assets 36,309,036
In the statement of activities the cost of capital assets is allocated over their estimated useful lives as depreciation/amortization expense (net of depreciation/amortization on internal service fund capital assets of $13,218,955). (20,178,602) Gain (loss) on disposal of assets 50,302 106,184,289 Long Term Debt Transactions
Issuance of debt and repayment of principal is an other financing source and expenditure, respectively, in the governmental funds but in the statement of net position the transactions increase and reduce long term liabilities.
Payment of debt principal 1,561,108
Amortization of premium 27,808
Initiation of subscriptions (1,587,516) 1,400
Pension Related Items
Governmental funds report pension contributions as expenditures. However, in the Statement of Activities, pension expense is measured as the change in net pension liability and the amortization of deferred outflows and inflows related to pensions. This amount represents the net change in pension related amounts. (7,149,824)
OPEB Related Items
Governmental funds report OPEB contributions as expenditures. However, in the Statement of Activities, OPEB expense is measured as the change in net OPEB liability and the amortization of deferred outflows and inflows related to OPEB. This amount represent the net change in OPEB related amounts. 11,456,439
Accrual of Non-Current Items
Certain amounts included in the Statement of Activities do not require the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Compensated absences (1,734,023)
Interest payable 15,536 (1,718,487)
Unavailable Revenues
Revenue and other resources not available to fund liabilities of the current period are not recognized in governmental funds. Revenue in the statement of activities is not limited by availability, so certain revenues need to be reduced by the amounts that were unavailable at the beginning of the year and increased by the amounts that were unavailable at the end of the year.
This adjustment is the change between prior year's unavailable revenues and the current year unavailable revenues. 4,130,798
Allocation of Internal Service Fund Activity
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with Governmental Funds is reported with governmental activities because they service those activities. 11,272,278 Change in Net Position of Governmental Activities 129,662,771$ See Notes to Financial Statements.
31
7+,63$*(,17(17,21$//</()7%/$1.
32
PROPRIETARY FUNDS
Proprietary funds account for C ity operations financed and oper ated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
The City has identified the funds below as major enterprise funds in fiscal year 2025.
Electric Fund
This fund accounts for all financial transactions relating to the City’s electric services. Services are on a user charge basis to residents and business owners located in the City.
Water Fund
This fund accounts for all financial transactions relating to the City’s water services. Services are on a user charge basis to residents and business owners located in the City.
Wastewater Fund
This fund accounts for all financial transactions relating to the City’s wastewater collection and treatment services.
Services are on a user charge basis to residents and business owners located in the City.
Waste Services Fund
This fund accounts for all financial transactions relating to t he City’s solid waste services. Services are on a user charge basis to residents and business owners located in the City.
Roseville Natural Gas Financing Authority
This fund accounts for financing and purchasing pre-paid natura l gas for the generation of power at the Roseville Energy Park.
Internal Service Funds
These funds account for activities and services performed by a designated department for other departments in the City.
33
CITY OF ROSEVILLE, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
ASSETS
Current assets:
Cash and investments in City Treasury 166,266,864$ 162,412,480$ 119,365,976$ 57,417,184$ Receivables (net of uncollectibles):
Accounts 43,132,969 16,987,790 12,998,625 5,285,052 Notes and loans 976,908 12,401 91,666,613 - Leases 123,658 - - - Inventories 28,262,186 1,970,958 223,734 117,059 Prepaid costs 8,859,260 17,031 - - Due from other funds - - - - Restricted:
Cash and investments in City Treasury - - 4,008,709 - Cash and investments with fiscal agents 11,301,542 5,640,223 - - Total current assets 258,923,387 187,040,883 228,263,657 62,819,295 Noncurrent:
Leases receivable 508,395 - - - Prepaid purchased gas - - - - Investment in NCPA reserves 7,199,392 - - - Investment in SPWA reserves - - 34,083,270 - Derivative instruments - - - - Advances to other funds - - - - Capital assets not being depreciated 29,486,573 14,369,332 28,544,123 3,740,926 Capital assets - net of accumulated depreciation/amortization 556,848,741 667,734,393 765,759,504 2,339,547 Total noncurrent assets 594,043,101 682,103,725 828,386,897 6,080,473 Total assets 852,966,488 869,144,608 1,056,650,554 68,899,768
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 3,744,628 852,051 - - Deferred pension related items 17,494,422 5,743,108 8,047,719 4,492,340 Deferred OPEB related items 1,631,000 765,000 986,000 526,000 Total deferred outflows of resources 22,870,050 7,360,159 9,033,719 5,018,340
LIABILITIES
Current liabilities:
Accounts payable 21,967,112 2,807,413 3,120,371 2,395,818 Accrued liabilities 2,754,012 631,457 1,804,879 433,018 Unearned revenues 10,955 280,722 1,002,726 301,648 Deposits payable 2,891,101 74,639 70,564 60,325 Due to other funds - - - - Subscriptions 271,130 88,991 111,994 33,367 Child development reserve - - - - Accrued compensated absences 2,708,687 746,155 1,178,899 620,385 Accrued claims and judgments - - - - Long-term debt - due in less than one year 4,400,000 3,455,000 2,764,930 - Landfill closure and post closure liability - - - 307,000 Total current liabilities 35,002,997 8,084,377 10,054,363 4,151,561 Noncurrent liabilities:
Advances from other funds - - - - Subscriptions 240,239 79,510 105,621 19,675 Accrued compensated absences 2,426,489 617,211 1,063,954 546,171 Accrued claims and judgments - - - - Long-term debt - due in more than one year 76,372,108 14,279,822 92,910,391 - Landfill closure and post closure liability - - - 2,759,000 Pension liability 75,098,554 24,653,522 34,546,553 19,284,341 Net OPEB liability 9,376,000 3,395,000 6,298,000 3,325,000 Total noncurrent liabilities 163,513,390 43,025,065 134,924,519 25,934,187 Total liabilities 198,516,387 51,109,442 144,978,882 30,085,748
DEFERRED INFLOWS OF RESOURCES
Accumulated increase in fair value of hedging derivatives - - - - Deferred OPEB related items 4,776,000 2,283,000 2,862,000 1,526,000 Lease deferred inflows 592,773 - - - Total deferred inflows of resources 5,368,773 2,283,000 2,862,000 1,526,000
NET POSITION
Net investment in capital assets 508,796,465 665,052,453 698,410,691 6,027,431 Restricted for debt service 9,694,961 5,640,223 4,008,709 - Restricted for sustainable energy program (AB 32) 6,362,234 - - - Unrestricted 147,097,718 152,419,649 215,423,991 36,278,929 Total net position 671,951,378$ 823,112,325$ 917,843,391$ 42,306,360$ Business-Type Activities
Electric Water Wastewater
Waste
Services
See Notes to Financial Statements.
34
CITY OF ROSEVILLE, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
ASSETS
Current assets:
Cash and investments in City Treasury
Receivables (net of uncollectibles):
Accounts
Notes and loans
Leases
Inventories
Prepaid costs
Due from other funds
Restricted:
Cash and investments in City Treasury
Cash and investments with fiscal agents
Total current assets
Noncurrent:
Leases receivable
Prepaid purchased gas
Investment in NCPA reserves
Investment in SPWA reserves
Derivative instruments
Advances to other funds
Capital assets not being depreciated
Capital assets - net of accumulated depreciation/amortization Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding
Deferred pension related items
Deferred OPEB related items
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Subscriptions
Child development reserve
Accrued compensated absences
Accrued claims and judgments
Long-term debt - due in less than one year
Landfill closure and post closure liability
Total current liabilities
Noncurrent liabilities:
Advances from other funds
Subscriptions
Accrued compensated absences
Accrued claims and judgments
Long-term debt - due in more than one year
Landfill closure and post closure liability
Pension liability
Net OPEB liability
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Accumulated increase in fair value of hedging derivatives Deferred OPEB related items
Lease deferred inflows
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for debt service
Restricted for sustainable energy program (AB 32)
Unrestricted
Total net position
Governmental
Activities
Non-Major Total
Enterprise Enterprise Internal
Funds Funds Service Funds
-$ 1,264,893$ 506,727,397$ 91,636,303$ - 12,500,398 90,904,834 3,002,494 - - 92,655,922 - - - 123,658 - - - 30,573,937 1,942,195 - 1,643,769 10,520,060 4,309,768 - - - 639,571 - - 4,008,709 - 5,139,255 - 22,081,020 - 5,139,255 15,409,060 757,595,537 101,530,331 - - 508,395 - 45,847,175 - 45,847,175 - - - 7,199,392 - - - 34,083,270 - 23,318,166 - 23,318,166 - - - - 3,598,108 - 45,708,444 121,849,398 12,587,412 - 30,513,412 2,023,195,597 115,679,316 69,165,341 76,221,856 2,256,001,393 131,864,836 74,304,596 91,630,916 3,013,596,930 233,395,167 - - 4,596,679 - - 2,782,522 38,560,111 6,589,924 - 381,000 4,289,000 479,000 - 3,163,522 47,445,790 7,068,924 1,753 1,967,505 32,259,972 2,288,934 859,313 288,638 6,771,317 670,479 - 9,257,436 10,853,487 498 51,705 - 3,148,334 - 676,173 55,000 731,173 - - - 505,482 999,232 - 79,189 79,189 - - 280,010 5,534,136 930,103 - - - 5,660,055 14,530,000 - 25,149,930 - - - 307,000 - 16,118,944 11,927,778 85,340,020 10,549,301 - 1,945,000 1,945,000 - - - 445,045 809,395 - 204,282 4,858,107 785,751 - - - 14,412,109 32,771,821 - 216,334,142 - - - 2,759,000 - - 11,944,578 165,527,548 28,288,664 - 3,322,000 25,716,000 3,790,000 32,771,821 17,415,860 417,584,842 48,085,919 48,890,765 29,343,638 502,924,862 58,635,220 23,318,166 - 23,318,166 - - 1,066,000 12,513,000 1,361,000 - - 592,773 - 23,318,166 1,066,000 36,423,939 1,361,000 - 76,221,856 1,954,508,896 126,458,101 5,139,255 - 24,483,148 - - - 6,362,234 - (3,043,590) (11,837,056) 536,339,641 54,009,770 2,095,665$ 64,384,800$ 2,521,693,919$ 180,467,871$ Business-Type Activities
Roseville
Natural Gas
Financing
See Notes to Financial Statements.
35
CITY OF ROSEVILLE, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
OPERATING REVENUES
Charges for services 219,329,856$ 46,095,844$ 62,650,617$ 44,216,080$ Miscellaneous 13,279,852 183,017 3,189,611 177,977 Total operating revenues 232,609,708 46,278,861 65,840,228 44,394,057
OPERATING EXPENSES
Administration and general 31,856,522 12,654,335 15,330,969 10,795,694 Operations 58,839,567 20,489,847 57,088,805 28,211,604 Depreciation and amortization 29,649,727 15,097,304 17,369,345 221,936 Power supply 86,640,445 - - - Claims expense - - - - Total operating expenses 206,986,261 48,241,486 89,789,119 39,229,234 Operating income (loss) 25,623,447 (1,962,625) (23,948,891) 5,164,823
NONOPERATING REVENUES (EXPENSES)
Subventions and grants 74,244 3,791,294 276,124 240,530 Lease revenues 293,397 - - - Interest income (loss) 9,906,899 9,254,023 8,218,245 3,051,995 Interest expense (2,671,383) (661,395) (1,253,406) (1,021) Increase (decrease) in JPA reserves 523,707 - 20,010,325 - Gains (losses) on sale of capital assets (512,789) - (397,767) - Total nonoperating revenues (expenses) 7,614,075 12,383,922 26,853,521 3,291,504 Income (loss) before capital contributions and transfers 33,237,522 10,421,297 2,904,630 8,456,327 Capital contributions - connection/impact fees 2,514,319 16,127,017 23,802,068 820,296 Capital contributions from developers and other agencies 81,304,510 15,764,018 17,846,211 - Contributions in aid of construction 7,815,205 - - - Transfers in - - - - Transfers out (9,098,000) (1,085,401) (688,712) (377,149) Change in net position 115,773,556 41,226,931 43,864,197 8,899,474 Net position-beginning 555,554,192 781,731,470 873,727,153 33,313,334 Restatements - change in accounting principles 623,630 153,924 252,041 93,552 Net position-beginning, as restated 556,177,822 781,885,394 873,979,194 33,406,886 Net position-ending 671,951,378$ 823,112,325$ 917,843,391$ 42,306,360$ Business-Type Activities
Electric Water Wastewater
Waste
Services
See Notes to Financial Statements.
36
CITY OF ROSEVILLE, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
OPERATING REVENUES
Charges for services
Miscellaneous
Total operating revenues
OPERATING EXPENSES
Administration and general
Operations
Depreciation and amortization
Power supply
Claims expense
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Subventions and grants
Lease revenues
Interest income (loss)
Interest expense
Increase (decrease) in JPA reserves
Gains (losses) on sale of capital assets
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers Capital contributions - connection/impact fees
Capital contributions from developers and other agencies Contributions in aid of construction
Transfers in
Transfers out
Change in net position
Net position-beginning
Restatements - change in accounting principles
Net position-beginning, as restated
Net position-ending
Governmental
Activities
Non-Major Total
Enterprise Enterprise Internal
Funds Funds Service Funds
16,528,513$ 6,772,045$ 395,592,955$ 76,855,492$ - 791,816 17,622,273 1,190,222 16,528,513 7,563,861 413,215,228 78,045,714 6,715 5,186,010 75,830,245 6,298 - 13,134,913 177,764,736 48,629,946 - 1,991,060 64,329,372 13,218,955 17,397,480 - 104,037,925 - - - - 11,079,576 17,404,195 20,311,983 421,962,278 72,934,775 (875,682) (12,748,122) (8,747,050) 5,110,939 - 29,928,831 34,311,023 1,121 - - 293,397 - 3,245,744 188,457 33,865,363 4,730,235 (2,903,004) (50,563) (7,540,772) (48,206) - - 20,534,032 - - (7,924) (918,480) (23,245) 342,740 30,058,801 80,544,563 4,659,905 (532,942) 17,310,679 71,797,513 9,770,844 - - 43,263,700 - - 400,960 115,315,699 - - - 7,815,205 - - 1,550,554 1,550,554 1,649,903 - - (11,249,262) (148,469) (532,942) 19,262,193 228,493,409 11,272,278 2,628,607 45,056,146 2,292,010,902 168,994,062 - 66,461 1,189,608 201,531 2,628,607 45,122,607 2,293,200,510 169,195,593 2,095,665$ 64,384,800$ 2,521,693,919$ 180,467,871$ Business-Type Activities
Roseville
Natural Gas
Financing
See Notes to Financial Statements.
37
CITY OF ROSEVILLE, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 220,551,283$ 38,884,641$ 62,896,011$ 43,809,170$ Receipts from interfund charges - - - - Payments to suppliers and service providers (125,955,015) (20,394,581) (56,016,260) (26,997,239) Payments to employees for salaries and benefits (47,484,313) (11,693,165) (13,514,132) (10,623,077) Other receipts (payments) 805,835 - - - Net cash provided by (used for)
operating activities 47,917,790 6,796,895 (6,634,381) 6,188,854
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - - - Transfers to other funds (9,098,000) (1,085,401) (688,712) (377,149) Interest paid on non-capital debt - - - (1,021) Payments from other funds on interfund borrowings - - - - Payments to other funds on interfund borrowings - - - - Payments received on notes and loans - - 2,822,163 - Landfill closure payments (increase) - - - 52,000 Loans to developers (185,421) - - - Subvention and grants 185,944 3,791,294 276,124 240,530 Net cash provided by (used for)
noncapital financing activities (9,097,477) 2,705,893 2,409,575 (85,640)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from capital debt - - - - Capital contributions 11,035,873 - - - Acquisition and construction of capital assets (36,941,726) (7,545,551) (11,091,340) (849,766) Principal paid on long term borrowings from the City - - - - Principal paid on long term debt (4,320,000) (3,290,000) (2,822,164) - Principal paid on subscriptions (335,881) (86,944) (109,650) (35,138) Interest paid on capital debt (2,597,547) (952,949) (1,253,406) - Connection/impact fees 2,407,150 16,127,017 23,802,068 820,296 Proceeds from sales of assets 80,911 - - - Net cash provided by (used for)
capital and related financing activities (30,671,220) 4,251,573 8,525,508 (64,608)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 3,846,984 3,607,782 3,785,117 1,107,993 Fair value adjustment 5,321,609 5,646,241 4,433,128 1,944,002 Lease revenue received 311,633 - - - Net cash provided by (used for)
investing activities 9,480,226 9,254,023 8,218,245 3,051,995 Net increase (decrease) in
cash and cash equivalents 17,629,319 23,008,384 12,518,947 9,090,601 Cash and cash equivalents-beginning 159,939,087 145,044,319 110,855,738 48,326,583 Cash and cash equivalents-ending 177,568,406$ 168,052,703$ 123,374,685$ 57,417,184$ Business-Type Activities
Electric Water Wastewater
Waste
Services
See Notes to Financial Statements.
38
CITY OF ROSEVILLE, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities
Electric Water Wastewater
Waste
Services
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) 25,623,447$ (1,962,625)$ (23,948,891)$ 5,164,823$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 29,649,727 15,097,304 17,369,345 221,936 (Increase) decrease in accounts receivable (12,148,996) (7,434,849) (1,719,725) (349,098) (Increase) decrease in notes and loans receivable - 10,942 - - (Increase) decrease in inventories (5,206,696) (211,943) (69,887) 134,929 (Increase) decrease in prepaid items (4,406,970) 115,522 - - (Increase) decrease in prepaid gas - - - - Increase (decrease) in accounts payable 13,524,211 191,687 1,142,432 1,079,436 Increase (decrease) in accrued liabilities - 54,101 154,592 53,168 Increase (decrease) in deposits payable 272,218 7,890 7,868 4,055 Increase (decrease) in unerned revenue - 21,797 (1,232,360) (239,844) Increase (decrease) in compensated absences 281,903 (2,758) 144,567 8,914 Increase (decrease) in claims and judgments - - - - Increase (decrease) in net pension items 1,154,946 1,339,827 1,865,678 273,535 Increase (decrease) in net OPEB items (826,000) (430,000) (348,000) (163,000) Total adjustments 22,294,343 8,759,520 17,314,510 1,024,031 Net cash provided by (used for)
operating activities 47,917,790$ 6,796,895$ (6,634,381)$ 6,188,854$
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Change in JPA reserves 523,707$ -$ 20,010,325$ -$ Contributions of capital assets 77,304,508 15,764,018 17,846,211 - Adjustments from change in accounting principle 623,630 153,924 252,041 93,552 Amortization on bond discount/(premium) (241,426) (461,964) - - Gain/(loss) on disposition of capital assets (593,700) - (397,767) - Initiation of subscriptions - - - - See Notes to Financial Statements.
39
CITY OF ROSEVILLE, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Receipts from interfund charges
Payments to suppliers and service providers
Payments to employees for salaries and benefits
Other receipts (payments)
Net cash provided by (used for)
operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds
Transfers to other funds
Interest paid on non-capital debt
Payments from other funds on interfund borrowings
Payments to other funds on interfund borrowings
Payments received on notes and loans
Landfill closure payments (increase)
Loans to developers
Subvention and grants
Net cash provided by (used for)
noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from capital debt
Capital contributions
Acquisition and construction of capital assets
Principal paid on long term borrowings from the City
Principal paid on long term debt
Principal paid on subscriptions
Interest paid on capital debt
Connection/impact fees
Proceeds from sales of assets
Net cash provided by (used for)
capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments
Fair value adjustment
Lease revenue received
Net cash provided by (used for)
investing activities
Net increase (decrease) in
cash and cash equivalents
Cash and cash equivalents-beginning
Cash and cash equivalents-ending
Governmental
Activities
Non-Major
Enterprise Internal
Funds Totals Service Funds
14,198,463$ 7,429,332$ 387,768,900$ -$
- - - 78,041,534 (2,012,809) (21,143,599) (252,519,503) (43,361,694) (259,968) (4,491,347) (88,066,002) (15,671,561) - - 805,835 (108,432) 11,925,686 (18,205,614) 47,989,230 18,899,847 - 1,550,554 1,550,554 1,649,903 - - (11,249,262) (148,469) - - (1,021) (688) 228,770 - 228,770 827,508 - - - (1,537,130) - - 2,822,163 - - - 52,000 - - - (185,421) - - 23,965,872 28,459,764 1,121 228,770 25,516,426 21,677,547 792,245 - - - 234,652 - - 11,035,873 - - (19,720,340) (76,148,723) (15,591,149) - (55,000) (55,000) - (13,865,000) - (24,297,164) - - - (567,613) (1,089,909) (3,638,915) (50,563) (8,493,380) (47,518) - - 43,156,531 - - 773 81,684 1,082 (17,503,915) (19,825,130) (55,287,792) (16,492,842) 3,245,744 39,902 15,633,522 1,883,523 - 174,745 17,519,725 2,846,712 - - 311,633 - 3,245,744 214,647 33,464,880 4,730,235 (2,103,715) (12,299,671) 47,843,865 7,929,485 7,242,970 13,564,564 484,973,261 83,706,818 5,139,255$ 1,264,893$ 532,817,126$ 91,636,303$ Business-Type Activities
Roseville
Natural Gas
Financing
See Notes to Financial Statements.
40
CITY OF ROSEVILLE, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense
(Increase) decrease in accounts receivable
(Increase) decrease in notes and loans receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid items
(Increase) decrease in prepaid gas
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in unerned revenue
Increase (decrease) in compensated absences
Increase (decrease) in claims and judgments
Increase (decrease) in net pension items
Increase (decrease) in net OPEB items
Total adjustments
Net cash provided by (used for)
operating activities
SCHEDULE OF NON-CASH NONCAPITAL, CAPITAL,
AND INVESTING ACTIVITIES
Change in JPA reserves
Contributions of capital assets
Adjustments from change in accounting principle
Amortization on bond discount/(premium)
Gain/(loss) on disposition of capital assets
Initiation of subscriptions
Governmental
Activities
Non-Major
Enterprise Internal
Funds Totals Service Funds
Business-Type Activities
Roseville
Natural Gas
Financing
(875,682)$ (12,748,122)$ (8,747,050)$ 5,110,939$ - 1,991,060 64,329,372 13,218,955 - (31,906) (21,684,574) (4,678) - - 10,942 - - - (5,353,597) (602,051) - (616,414) (4,907,862) (1,590,994) 15,404,700 - 15,404,700 (420,503) (13,314) (968,419) 14,956,033 81,321 (259,968) 14,431 16,324 498 (2,330,050) (5,620,620) (7,658,639) 46,760 - (23,434) (1,473,841) 3,138,733 - (69,550) 363,076 80,867 - - - (160,000) - 127,360 4,761,346 - - (260,000) (2,027,000) - 12,801,368 (5,457,492) 56,736,280 13,788,908 11,925,686$ (18,205,614)$ 47,989,230$ 18,899,847$ -$ -$ 20,534,032$ -$ - - 110,914,737 - - 66,461 1,189,608 201,531 (735,911) - (1,439,301) - - (7,924) (999,391) (23,245) - - - 99,106 See Notes to Financial Statements.
41
7+,63$*(,17(17,21$//</()7%/$1.
42
FIDUCIARY FUNDS
Fiduciary funds are presented separately from the government-wide and fund financial statements. The City had the following types of fiduciary funds in fiscal year 2025:
Other Post-Employment Benefits Trust Fund
This fund is used to account for assets held by the City as a trustee agent for the members and beneficiaries of the other post-employment benefit plan.
Private-Purpose Trust Funds
These funds are used to account for trust arrangements under wh ich principal and income benefit private organizations or other governments.
Custodial Funds
These funds are used to account for assets held by the City cus todian for individuals, private organizations, and other governments.
43
Private
Purpose Custodial
Trust Funds Funds
ASSETS
Cash and investments in City Treasury -$ 4,494,413$ 258,683,568$ OPEB plan assets:
Money market funds 575,993 - - Domestic equity funds 92,652,924 - - Fixed income securities 67,215,361 - - Real estate partnership 16,476,237 - - Cash equivalents 769,015 - - Receivables:
Accounts 234,328 23,808 30,692,183 Due from developers - - 1,057,494 Restricted assets:
Cash and investments with fiscal agents - 60,424 86,128,825 Total assets 177,923,858 4,578,645 376,562,070
LIABILITIES
Accounts payable 5,101 - 9,221,624 Accrued liabilities - 714,348 1,865,795 Unearned revenues - - 87,711 Deposits payable - - 298,046 Arbitrage liability - - 213,734 Due to beneficiaries - 32,096,821 364,143,784 Total liabilities 5,101 32,811,169 375,830,694
NET POSITION
Restricted for:
Restricted for OPEB 177,918,757 - - Restricted for private purposes, organization and
other governments - (28,232,524) 731,376 Total net position 177,918,757$ (28,232,524)$ 731,376$
CITY OF ROSEVILLE, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Other Post
Employment
Benefits Trust
See Notes to Financial Statements.
44
Private
Purpose Custodial
Trust Funds Funds
ADDITIONS
Contributions:
Property taxes, net of pass through payments -$ 5,442,044$ 46,185,448$ Intergovernmental - - - Investment income 17,672,607 248,813 17,018,981 Contributions from City 11,113,404 - - Contributions from members - - 29,150,063 Levies assessed - - 46,244,649 Permits fees - - 23,768,199 Miscellaneous - - 123,406 Total contributions 28,786,011 5,690,857 162,490,746 Total additions 28,786,011 5,690,857 162,490,746
DEDUCTIONS
Retiree health plan benefits 10,091,946 - - Administrative expenses 34,976 - 1,216,372 Contractual services - 87,515 - Net change in amount due to beneficiaries - 894,321 161,110,319 Total deductions 10,126,922 981,836 162,326,691 Net increase (decrease) in fiduciary net position 18,659,089 4,709,021 164,055 Net position-beginning 159,259,668 (32,941,545) 567,321 Net position-ending 177,918,757$ (28,232,524)$ 731,376$
CITY OF ROSEVILLE, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
Other Post
Employment
Benefits Trust
See Notes to Financial Statements.
45
7+,63$*(,17(17,21$//</()7%/$1.
46
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIF ICANT ACCOUNTING POLICIES
The City of Roseville (City) was incorporated on April 10, 1909, under provisions of Act 279, P.A. 1909, as amended (Home Rule City). The City operates under the Council-Manager f orm of government and provides the following services: public safety (police and fire), streets, water, wast ewater, waste services, electric, local transportation, school-age child care, golf course, parks and recreation, publi c improvements, planning and zoning, libraries, general administration services, economic development, and housing.
The financial statements and accounting policies of the City conform with generally accepted accounting principles in the United States of America applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
Significant accounting policies are summarized below:
A. Reporting Entity
The accompanying basic financial statements present the financial activity of the City, which the primary government presented, along with the financial activities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are, in substance, part of the City’s operations and are reported as an integral part of the City’s financial statements. The Cit y’s component units which are described below are all blended component units.
The Roseville Finance Authority is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital facilities within the City. The Authority has the power to purchase bonds issued by any local agency at public or negotiated sale and may sell such bonds to public or private purchasers at public or negotiated sale. The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Au thority. The financial activities of the Authority are included in the Roseville Finance Authority Debt Service Fund and Capital Projects Fund.
The City of Roseville Housing Authority is a separate government entity whose purpose is to assist with t h e housing for the City’s extremely low and very low-income residents. The Authority is controlled by the City and has the same governing body as the City, which also performs all ac counting and administrative functions for the Authority. The financial activities of the Authority are includ ed in the Housing Authority Housing Choice Voucher Special Revenue Fund.
The Roseville Natural Gas Financing Authority is a Joint Exercise Powers Agency created on December 6, 2006, for the purpose of acquiring, financing, and supplying natural gas to the City of Roseville. The members of the Authority are the City of Roseville and the former City of Roseville Redevelopment Agency. The Roseville Natural Gas Financing Authority is governed by a five-member Board. Cit y Council serves as the governing body of the Authority and officers of the Authority are employees of the City. The financial activities of the Authority have been included in these financial statements in the Roseville Natural Gas Financing Authority Enterprise Fund.
The City of Roseville Other Post-Employment Benefits Trust is governed by the City’s Resolution 10-275 and is used to account for contributions and investment income restricted to pay medical benefits. Benefit and contribution provisions are established by the City Council. Eligibility, actuarial interest rates, administration and certain other tasks are the responsibility of the Council established by the above resolution. The financial activities of the plan have been included in these financial statements in the Other Post-Employment Benefits Trust Fund.
The Successor Agency to the Redevelopment Agency of the City of Roseville (Successor Agency) is a separate government entity which was created after the dissolution of the City of Roseville Redevelopment Agency (RDA) to serve as a custodian for assets and to wind down the affairs of the RDA. The City was designated to serve as the Successor Agency subject to control of an Oversight Boar d. The Oversight Board is comprised of seven members of the local agencies that serve the RDA project area: two appointed by the mayor, two by the County of Placer, one by the Placer County Superintendent of Schools, one by the Chancellor of Sierra Community College and one by the Cities of Rocklin and Newcastle and the Gold Hill Cemetery District. The financial activities of the Successor Agency are included in the Successor Agency to the Redevelopment Agency Private Purpose Trust Fund.
47
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial statements for the Roseville Natural Gas Financing Au thority and the City of Roseville Other Post-Employment Benefits Trust may be obtained from the City of Roseville at 311 Vernon Street, Rosev ille, California, 95678. Separate financial statements for the Rosevi lle Finance Authority, Roseville Housing Authority, and the Successor Agency are not issued.
The California Joint Powers Risk Management Authority, the Local Agency Workers’ Compensation Excess Joint Powers Authority, the Highway 65 Joint Powers Authority, and th e South Placer Wastewater Authority are not included in the accompanying basic financial statements because they do not meet the above financial accountability criteria as these entities are administered by governing boards separate from and wholly independent of the City.
B. Basis of Presentation
Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government, the City and its component units. These statements include the financial activities of the overall City government, excluding fiduciary activities. El iminations have been made to minimize the double counting of internal activities. However, the interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City.
Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by user charges and fees charged to external parties.
The Statement of Activities pr esents a comparison between direc t expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restrict ed to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Certain indirect costs are included in the program expense reported for individual functions and activities.
Fund Financial Statements: The fund financial statements provide information about the Cit y’s funds, including fiduciary funds and blended component units. Separate statement s for each fund category— governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds in the supplemental section.
Proprietary fund operating revenues, such as charges for servic es, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value s. Nonoperating revenues, such as subsid ies and investment earnings, result from nonexchange transactions or ancillary activities.
C. Major Funds
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund – This is used as the main operating governmental fund of the C ity to account for the general revenues of the City not specifically levied or collected for o ther City funds and the related expenditures. The General Fund accounts for all financial resources of a governme ntal unit which are not accounted for in another fund.
48
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Community Facilities Districts Capital Projects Fund – This fund is used to account for specific public improvements such as streets, sewers, storm drains, sidewalks o r other amenities funded by special taxes levied against benefited properties.
The City reported the following enterprise funds as major funds in the accompanying financial statements:
Electric Fund – This fund accounts for all financial transactions relating to the City’s electric service. Services are on a user charge basis to residents and business owners located in the City.
Water Fund – This fund accounts for all financial transactions relating to the City’s water services. Services are on a user charge basis to residents and business owners located in the City.
Wastewater Fund – This fund accounts for all financial transactions relating to the City’s wastewater collection and treatment. Services are on a user charge basis to residents and business owners located in the City.
Waste Services Fund – This fund accounts for all financial transactions relating to the City’s waste services.
Services are on a user charge basis to residents and business owners located in the City.
Roseville Natural Gas Financing Authority – This fund accounts for financing and purchasing pre-paid natu ral gas for the generation of power for the Roseville Energy Park.
The City also reports the following funds:
Special Revenue Funds – The funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
Debt Service Fund – The funds are used to account for community facilities distr icts transactions related to the districts debt.
Permanent Fund – The funds are used to account for the citizens benefit funds.
Internal Service Funds – The funds account for fleet, facilities services, information technology, general equipment replacement, workers’ compensation, general liability, unemployment reserve, and general benefits such as vision, dental, and section 125 benefits all of which are provided to other departments on a cost reimbursement basis.
Fiduciary Funds – These funds account for assets held by the City as a fiduciar y for various functions. The Endowment Private-Purpose Trust Fund is used to account for assets held by the City as a fiduciary for various endowment funds for the benefits of certain private-purpose tru st funds. The Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund accounts for th e accumulation of resources to be used for payments at appropriate amounts and times in the future. The Other Post-Employment Benefits Trust Fund accounts for the accumulation of resources to be used for retiree medical benefit payments at appropriate amounts and times in the future. The Custodial Funds are used to account for assets held by the City as a fiduciary for certain special assessment districts in the City, North Roseville-Rocklin Sewer Refunding District, Foothills Boulevard Extension Assessments, Dry Creek Drainage Basin, County Capital Facilitie s Fee, South Placer Wastewater Authority, Special Sewer Benefit Areas, South Placer County Tourism Business Improvement District (SPCTBID), South Placer County Safe Kids Coalition, Highway 65 JPA, external traffic mitigation fees and other programs for the benefits of parties outside of the City. The financial activities of these funds are excluded from the government-wide financial statement but are presented in separate Fiduciary Fund financial statements. 49
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Basis of Accounting
The government-wide, proprieta ry, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available . The City considers all revenues reported in the governmental funds to be available if the revenues are collected within one hundred twenty (120) days after year-end with the exception of property and sales taxes which is considered available if collected within sixty (60) days. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, cl aims and judgments, and compensated absences, which are recognized as expenditures to the extent they have ma tured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under leases are reported as other financing sources.
Governmental fund revenues subject to accrual are property, sal es tax, transient occupancy tax, franchise fees, certain other intergovernmental revenues, certain charges for s ervices and interest revenue. Fines, licenses and permits, and charges for services are not subject to accrual because they are not measurable until received in cash.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grant s, entitlements, and donations . On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
E. Cash, Cash Equivalents, and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents. Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized costs. All other investments are stated at fair value. For purposes of reporting cash flows, the City considers each fund’s share in the cash and investments pool to be cash and cash equivalents.
F. Revenue Recognition for Electric, Water, Wastewater, and Waste Services Funds
Revenues are recognized based on services rendered to customers. All residential and commercial utility customers are billed once per month. There are twenty-four billing cycles per month which include all types of customers, based on their location within the City. Revenues for services provided but not billed at the end of a fiscal year are accrued.
Contributions of cash or assets t o proprietary funds from state and federal agencies, developers and others are recorded as revenue at acquisition value.
G. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period and so will not b e recognized as an outflow of resources (expense/expenditure) until then. The City has four items that qualify for reporting in this category on the government-wide and proprietary f und statements of net position. They are the deferred amounts on refunding, accumulated decrease in fair value of hedging derivatives, defe rred outflows related to other postemployment benefits (OPEB), and deferred outflows related to pensions. A d eferred amount on refunding results from the 50
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The accumulated decrease in fair value of hedging derivatives represents the change in fair value for the City’s derivative liabilities that have been determined to be not effective. The deferred outflows related to pensions and OPEB are described in Note 13 and Note 14, respectively.
The deferred lease items are described in Note 9.
In addition to liabilities, the statement of net position and b alance sheet reports a separate section for deferred inflows of resources. This separ ate financial statement element , deferred inflow of resources , represents an acquisition of net assets that applies to a future period and s o will not be recognized as an inflow of resources (revenue) until that time. The City has four types of these ite ms reported in the government-wide and proprietary fund statements of net position and the governmental funds balance sheet. They are the accumulated increase in fair value of hedging derivatives, deferred inflows related to pensions, the deferred inflows related to OPEB, and unavailable revenues. The accumulated increase in fair value of hedging derivatives represents the change in fair value for the City’s derivative assets that have been determined to be effective.
The deferred inflows related to pensions and OPEB are described in Note 13 and 14, respectively. Unavailable revenue represents revenues which has been earned but will not be collected within the City’s period of availab ility as defined in Note 1D.
In the governmental funds balance sheet, the unavailable revenu e category arises only under a modified accrual basis of accounting. When amounts have been earned, but have no t been received within the availability period, these amounts are deferred and recognized as revenue in the period that the amounts become available.
H. Property Tax
Placer County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handl es all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on July 1st of the preceding fiscal year.
Secured property tax is due in two installments, on November 1s t and February 1st, and becomes a lien on those dates. It becomes delinquent on December 10th and April 10th, r espectively. Unsecured property tax is due on July 1st and becomes delinquent on August 31st. Collection of d elinquent accounts is the responsibility of the County, which retains all penalties.
The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available as defined above.
I. Compensated Absences
Compensated absences are comprised of unused vacation leave, ve sted sick pay and certain compensated time off, which are accrued as earned. The estimated value of the City’s liability for compensated absences is accrued annually in the government-wide and proprietary fund financial statements when the leave (1) is attributable to services already rendered, (2) accumulates, and (3) is more lik ely than not to be used for time off or otherwise settled in cash or noncash means. For all governmental funds, a liability of these amounts is reported only if they have matured, for example, as a result of employee resignations and retirements. The remaining portion is recorded as a liability in the statement of net position. For fiscal yea r 2025, the City’s net com pensated absences liability decreased for both governmental and business-type activities by $1,780,777 and $389,802, respectively.
Governmental
Activ ities
Business
Activ ities Total
17,303,177$ 11,192,037$ 28,495,214$
(386,456) (799,794) (1,186,250)
16,916,721$ 10,392,243$ 27,308,964$
Current Portion 8,761,963$ 5,534,136$ 14,296,099$
Beginning Balance, as restated
Ending Balance
Net change
51
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. Inventories
Inventories are valued at cost, using the weighted-average method. Inventories of the governmental funds consist of expendable supplies held for consumption. The cost is recorded as an expenditure in the governmental funds at the time individual inventory items are consumed. Inventories reported in governmental funds are equally offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net curr ent assets. Inventories of the proprietary funds consist primarily of supplies and equipment held for internal consumption.
K. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.
In governmental funds, prepaid items are not in spendable form and are therefore included in nonspendable fund balance and recorded on the consumption method.
L. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
M. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees Retirement System (CalPERS) plan and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
N. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City of Roseville Retiree Healthcare Plan (Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
O. Fair Value Measurement
The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quote d prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
P. Net Position
Net position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three categories. These categories apply only to net position, which is determined only for proprietary funds and at the government-wide level, and are described below:
Net investment in capital assets describes the portion of net position which is represented by the current net book value of the capital assets, less the outstanding balance of any debt issued to finance these assets. 52
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Restricted describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws , or other restrictions which the City cannot unilaterally alter. These principally include developer fees re ceived for use on capital projects (expended) or contributions received in permanent funds (unexpended), debt se rvice requirements, and redevelopment funds restricted to low and moderate income purposes.
Unrestricted describes the portion of net position which is not restricted to use.
The City applies restricted resources when an expense is incurr ed for purposes which both restricted and unrestricted net position are available.
Q. Fund Balance
In the fund financial statements, fund balances represent the n et current assets of each fund. Net current assets generally represent a fund’s assets and deferred outflows of resources, less its liabilities and deferred inflows of resources.
The City’s fund balances are classified based on spending const raints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes an d expends funds in the following order: restricted, committed, assigned, and unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required t o be maintained intact, such as permanent endowments, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints im posed by formal action of the City Council, such as an ordinance, which may be altered only by the same formal action of the City Council. Encumbrances and nonspendable amounts subject to council commitments are included along with spendable resources.
Assigned fund balances are amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. Assignments may be made by the City Council or its designee, the Assistant City Manager/Chief Financial Officer. Unlike commitments, assignments generally only exist temporarily. Thus, additional action does not normally have to be taken for the removal of an assignment.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds.
It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
R. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available.
Contributed capital assets are valued at their estimated acquis ition value on the date contributed. The City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems.
53
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital assets with limited useful lives are depreciated over their estimated useful lives. Alternatively, the modified approach is used for certain capital assets. Depreciation is not provided under this approach, but all costs associated with these assets are expensed, unless they are additions or improvements.
The purpose of depreciation is to spread the cost of capital as sets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.
Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives and capitalization thresholds listed below to capital assets:
Major outlays for capital assets and improvements are capitalized as projects are constructed.
S. Leases
Lessee lease
The City of Roseville is a lessee for a noncancellable lease of equipment. The City of Roseville recognizes a lease liability and an intangible right ‐to‐use lease asset (lease asset) in the government ‐wide financial statements. The City of Roseville recognizes lease liabilities with an initial, individual value of $75,000 or more.
At the commencement of a lease, the City of Roseville initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is r educed by the principal portion of lease payments made. The lease asset is initially me asured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commenc ement date, plus certain initial direct costs.
Subsequently, the lease asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments related to leases include how the City of Roseville determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
• The City of Roseville uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City of Roseville generally uses its estimated incremental borrowing rate as the discount rate for leases.
Useful Lives
Capitalization
Thresholds
40 years 20,000$
20 -75 years no threshold
6 - 20 years 5,000
6 years 5,000
6 - 8 years 5,000
25 years 5,000
12 years 20,000
20 years 20,000
90 years 20,000
75 years 20,000
50 years 20,000
20 years 20,000
35 years 20,000
75 years 20,000
Traffic Signals 20 years no threshold
Electric Distributions System 15 - 60 years no threshold Sewer and Water Distributions Systems 75 years no threshold Electric Generation 15 - 30 years 5,000
Electric Power Plants and Substation 40 years 5,000
Sewer and Water Treatment Plants 50 years 5,000
Parks
Buildings
Improvements
Equipment
Computer Equipment
Vehicles
Sound Walls
Storm Drains
Landscaping
Bike Paths
Bridges
Culverts
Drain Inlets
Roadway Minor Concrete
54
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purch ase option price that t he City of Roseville is reasonably certain to exercise.
The City of Roseville monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease l iabilities are reported wi th long-term debt on the statement of net position.
Lessor lease
The City of Roseville is a less or for a noncancellable lease of a building. The City of Roseville recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.
At the commencement of a lease, the City of Roseville initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subs equently, the lease receivable is reduced by the principal portion of lease payments received. The deferred infl ow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.
Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City of Roseville determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
• The City of Roseville uses its es timated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease . Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City of Roseville monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resource s if certain changes occur that are expected to significantly affect the amount of the lease receivable.
T. Subscription-Based Information Technology Arrangements
The City of Roseville is a subscriber for a noncancellable subscription of information technology services. The City of Roseville recognizes a subscription liability and an intangible right‐to‐use subscription asset (subscription asset) in the government‐wide financial statements. The City of Roseville recognizes subscription liabilities with an initial, individual value of $75,000 or more.
At the commencement of a subscription, the City of Roseville in itially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequen tly, the subscription asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments related to subscriptions include how the City of Roseville determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.
• City of Roseville uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City of Roseville generally uses its estimated incremental borrowing rate as the discount rate for subscriptions.
• The subscription term includes the noncancellable period of th e subscription. Subscription payments included in the measurement of the subsc ription liability are composed o f fixed payments that the City of Roseville is reasonably certain to exercise.
55
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The City of Roseville monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if cert ain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities ar e reported with long-term debt on the statement of net position.
U. New Accounting Pronouncements
Effective in Current Fiscal Year
GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information n eeds of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The Statement is effective for reporting periods beginning after December 15, 2023. See Note 22 for the impact of implementation of this statement on the City’s financial statements.
GASB Statement No. 102 – In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this Statement is to provide users of government f inancial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025. This statement has not caused any changes for the City’s funds.
Effective in Future Fiscal Years
GASB Statement No. 103 – In April 2025, the GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025. The City has not determined the effect of this Statement.
GASB Statement No. 104 – In September 2025, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The objective of this Statement is to provide users of govern ment financial statements with essential information about certain types o f capital assets. The new stan dard is effective for periods beginning after June 15, 2025. Application of this statement is effective for the City’s year ending June 30, 2026.
NOTE 2: CASH AND INVESTMENTS
The City pools cash from all sources and all funds, except cert ain specific investments within funds and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time.
The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.
Individual investments are generally made by the City’s fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a b ank as the custodian of all City managed investments, regardless of their form.
The City’s investments are reported at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
56
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
A. Classification
Cash and investments are classified in the financial statements as shown below:
Cash and investments with original maturities of three months or less are treated as cash and equivalents for purpose of preparing Proprietary Fund statements of cash flows. Also, each Proprietary Fund’s portion of the City’s overall cash and investment pool is treated as cash and equivalents since these amounts are in substance demand deposits.
B. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City an d approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City’s Investment Policy where it is more restrictive:
Cash and inv estment in City Treasury 982,723,923$
4,008,709
50,055,252
1,036,787,884
Fiduciary Funds (separate statement):
Cash and inv estments in City Treasury 440,867,511
Restricted cash and inv estments with fiscal agents 86,189,249 Total cash and inv estments 1,563,844,644$
Cash and inv estments as of June 30, 2025, consist of the following:
Cash in bank and on hand 9,020,662$
Investments 1,554,823,982
Total cash and inv estments 1,563,844,644$
Primary Government:
Restricted cash and investments in City Treasury
Restricted cash and investments with fiscal agents
Total city cash and inv estments with primary gov ernment Maximum
Maturity
Minimum
Credit Quality
at Time of
Purchase
Maximum
Percentage of
Portfolio
Allowed
Maximum
Investment in
One Issuer
5 years None None None
U.S. Agencies Securities (1) 5 years None None None
N/A A None None
5 years None None N/A
1 Year None None None
180 Days None 40% 30%
270 Days A - 1 25% 10%(2)
5 years A 30% None
5 years None 30% None
5 years A 30% None
Local Agency Investment Fund (LAIF) N/A None None LAIF Limit N/A None None None
N/A None 20 10%
Shares in a California Common Law Trust N/A None None None Supranationals 5 years AA 30% None
Mortgage Pass-Through Securities 5 years AA 20% None
Money Market Mutual Funds
Authorized Investment Type
U.S. Treasury Obligations(1)
Forward Delivery Agreements
Local Agency
Repurchase Agreements
Bankers' Acceptance
Commercial Paper
Medium Term Notes
Collateralized Time Deposit
Negotiable Certificate of Deposit
Insured Sav ings Accounts
57
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
(1) In specified fund accounts where liquidity is not the primary investment objective, the maximum maturity can be up to ten years with granted express authority by the City Coun cil. Such investments cannot be made less than three months following the approval of extended investment term s. All longer-term investments must be Federal Treasury or Agency securities. The specified fund accounts are:
• City Pool, subject to 25%
• Citizens Benefit Permanent Fund
• Roseville Aquatics Complex Maintenance Fund
• Endowment Private-Purpose Trust Fund
• OPEB Trust Fund
• All future trust and/or endowment funds established by the City with no anticipated use of principal
(2)Eligible commercial paper may not represent more than 10% of the outstanding paper of an issuing corporation.
C. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State s tatutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:
Maximum
Maturity
Minimum Credit
Quality
N/A None
U.S. Agencies Securities N/A None
N/A - 30 days None to A-1
N/A - 30 days None to A-1
N/A - 30 days None to A
N/A - 270 days None to A-1
N/A None to Aam-G
N/A None
180 - 270 days A-1 to AA
N/A AA
Pre-refunded Municipal Obligations N/A AAA
N/A AAA
N/A None
California Asset Management Pool (CAMP) N/A None
Lawful Investments N/A None
Inv estment Agreements N/A A+ to AA
Local Agency Investment Fund (LAIF) N/A None
Placer County Investment Pool N/A None
Supranationals N/A None
Mortgage Pass - Through Securities N/A None
Money Market Funds
Taxable Governmental Money
Commercial Paper
Special Revenue Bonds
Municipal Obligations
Common Law Trust
Authorized Inv estment Type
U.S. Treasury Obligations
Certificates of Deposit
Time Deposits
Repurchase Agreements
Bankers' Acceptance
58
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City also manages its interest rate risk by holding most investments to maturity.
Information about the sensitivity of the fair values of the Cit y’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
The City is a voluntary participant in the Local Agency Investm ent Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. At June 30, 2025, the fair value was $61,043 less than the City’s cost. The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Included in LAIF’s investment portfolio are collateralized mort gage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floa ting rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2025, these investments matured in an average of 248 days. LAIF is no t registered with the Securities and Exchange Commission and is not rated.
The City is a participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provision s of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the “Act”) for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds. The Pool’s investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share. At June 30, 2025, the fair value approximate d is the City’s cost, and these investments had an average maturity of 41 days. CAMP is not registered with the Securities and Exchange Commission and is not rated.
Money market mutual funds were available for withdrawal on dema nd and at June 30, 2025 and had an average maturity of 47 days for the Dreyfus U.S. Treasury Money Market Fund and 42 days for the First American Money Market Fund.
12 Months or
Less
13 to 24
Months
25 to 60
Months
More Than 60
Months Total
113,375,230$ 177,574,938 $ 178,127,537 $ 214,115,104 $ 683,192,809 $ 4,262,039 - - - 4, 262,039 4,010,284 - 21,554,506 - 25, 564,790 153,992,813 50,228,512 114,309,295 - 318,530,620 147,591,811 - - - 147,591,811 - - 3,918,125 2,150,737 6, 068,862 51,001,713 - - - 51, 001,713 176,920,515 - - - 176,920,515 - - 8,013,818 - 8, 013,818 24,138,771 - - - 24, 138,771 51,360,986 - - - 51, 360,986 Commercial Paper - Discount 9,936,600 - - - 9, 936,600 40,924,560 - 2,007,820 5,308,268 48,240,648 777,515,322$ 227,803,450$ 327,931,101$ 221,574,109$ 1,554,823,982$ U.S.
Treasury Obligations
Total
California Asset Management Pool
Remaining Maturity (in Months)
Federal Agency Securities
Pension Trust
Forward Purchase Agreement
Local Agency Bonds
Corporate Notes
Money Market Mutual Funds
Supranationals
Other Post Employment Benefits Trust (OPEB)
Local Agency Investment Fund
Guranteed Investment Contracts (GIC)
59
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
E. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the actual rating as of June 30, 2025, for e ach investment type as provided by Standard and Poor’s investment rating system:
F. Concentration of Credit Risk
Investments in any one issuer, other than U. S. Treasury securi ties, money market mutual funds, and investment pools that represent 5 percent or more of total entity-wide investments are as follows at June 30, 2025:
Investments in any one issuer t hat represent 5 percent or more of total investments by individual funds were as follows at June 30, 2025:
AAA / AAAm AA+ / AA / AA- A+ / A / A- BBB Total
Investments:
Federal Agency Securities -$ 504,194,108$ -$ -$ 504,194,108$ Forward Purchase Agreement - - 4,262,039 - 4,262,039 Local Agency Bonds 1,806,471 21,120,517 - - 22,926,988 Corporate Notes - 98,631,796 209,048,575 1,959,420 309,639,791 Supranationals 8,013,818 - - - 8,013,818 California Asset Management Program 51,360,986 - - - 51,360,986 Total 61,181,275$ 623,946,421$ 213,310,614$ 1,959,420$ 900,397,730 Not Rated:
Commerical Paper - Discount 9,936,600
Corporate Bonds and Notes 8,890,830
Guaranteed Inv estment Contracts 6,068,862
Local Agency Bonds 2,637,802
Local Agency Investment Fund 51,001,713
Money Market Mutual Funds 147,591,811
Other Post Employment Benefits Trust (OPEB) 176,920,515 Pension Trust 24,138,771
U.S. Treasury and Federal Agency Obligations 227,239,348 Total investments 1,554,823,982$
Investment Type Amount % of Portfolio
Federal Farm Credit Bank Federal agency securities 156,525,775 $ 10.07% Federal Home Loan Bank Federal agency securities 339,107,013 21.68% Federal Agricultural Mortgage Corporation (FAMC) Federal agency securities 111,996,954 7.16% First American Multi-Manager Fixed-Income Fund First American Fu nds 86,602,662 5.54% Issuer
Issuer Inv estment Type Amount
Major Enterprise Funds:
Roseville Natural Gas Financing Authority Wachovia Bank* Forward Purchase Agreement 4,262,039$ *Issuer changed from Wachovia Bank to Wells Fargo Bank as Wachovia Bank w as acquired by Wells Fargo Bank in 2008 Fund
60
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
G. Fair Value Measurements
The City’s Pool categorizes its f air value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows:
• Level 1: Investments reflect prices quoted for identical assets in active markets; • Level 2: Investments reflect prices that are based on a similar observable inputs; • Level 3: Investments reflect prices based on unobservable inputs.
The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by management. City management consider observable data to be that market data, whi ch is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provide d by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment. The Pool’s asset market prices are derived from closing bid prices as of the end of business day as supplied by U.S. Bank. Where prices are not ava ilable from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated fair value. Prices that fall between data points are interpolated. The City has a forward purchase agreement that is measured using level 3 inputs. This item is valued using the discounted cash flows approach. Deposi ts and withdrawals in governmental investment pools, such as LAIF and CAMP Investment Pools, are made on the basis of $1 and not fair value. Accordingly, the City’s measured fair value of its proportionate share in these types of investments is based on uncategorized inputs not defined as a Level 1, Level 2, or Level 3 input.
The Pool has the following recurring fair value measurements as of June 30, 2025:
Total
Quoted Prices in Active
Markets for Identical Assets
(Level 1)
Significant Other
Observ able Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3)
Federal Agency Securities 683,192,809 $ - $ 683,192,809$ - $ U.S. Treasury Obligations 48,240,648 - 48,240,648 - Corporate Notes 318,530,620 - 318,530,620 - Municipal Securities 25,564,790 - 25,564,790 - Forward Purchase Agreements 4,262,039 - - 4,262,039 Other Post Employment Benefits Trust (O PEB) 176,920,515 575,993 159,868,285 16,476,237 Commercial Paper - Discount 9,936,600 9,936,600 - - Money Market Mutual Funds 147,591,811 147,591,811 - - Total Investments at Fair Value 1,414,239,832 158,104,404$ 1,235,397,152$ 20,738,276$ Investments measured at amortized cost
Guaranteed Investment Contracts (GIC's) 6,068,862
Investments with uncategorized inputs
California Asset Management Program 51,360,986
Local Agency Investment Fund 51,001,713
Pension Trust 24,138,771
Supranationals 8,013,818
Total investments measured with uncategorized inputs 134,515,288 Total investments 1,554,823,982$
Inv estments at Fair Value
61
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: INTERFUND TRANSACTIONS
A. Transfers Among Funds
With City Council approval, resources may be transferred from one City fund to another. Transfers between funds during the fiscal year ended June 30, 2025, were as follows:
Fund Receiving Transfer Fund Making Transfer Amount Transferred Governmental Funds:
General Fund
Electric Fund 8,640,558$ (C)
Non-Major Governmental Funds 10,138,432 (A), (C) Total General Fund 18,778,990
Non-Major Governmental Funds
General Fund 2,938,972 (A), (B)
Electric Fund 407,539 (B)
Water Fund 1,085,401 (B), (C)
Wastewater Fund 688,712 (B), (C)
Waste Services Fund 377,149 (B), (C)
Non-Major Governmental Funds 2,318,273 (A), (B) Internal Service Funds 148,469 (A)
Total Non-Major Governmental Funds 7,964,515
Total Governmental Funds 26,743,505
Enterprise Funds:
Local Transportation Fund General Fund 129,191 (A)
Youth Development Fund General Fund 1,421,363 (B)
Total Enterprise Funds 1,550,554
Internal Service Funds:
Fleet Fund
Electric Fund 49,903 (A)
Equipment Replacement Fund
General Fund 1,600,000 (A)
Total Internal Service Funds 1,649,903
Total Interfund Transfers 29,943,962$
(A) Transfers to fund operations
(B) Transfers to fund various projects and/or pay debt service (C) Transfers to fund in-lieu franchise fees
62
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: INTERFUND TRANSACTIONS (CONTINUED)
B. Current Interfund Balances
Current interfund balances arise in the normal course of busine ss and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2025, interfund balances comprised the following:
C. Long-Term Interfund Advances
At June 30, 2025, the funds below had made advances which were not expected to be repaid within the next year:
Golf Course advance from the Fleet Fund bears interest at the prior fiscal year’s average interest rate of the City’s pooled investments. Principal is paid annually in the amount of $127,000 with the final principal payment in fiscal year 2037. Simple interest is deferred for the life of the loan and a lump-sum deferred interest payoff is due in fiscal year 2037. As of June 30, 2025, the accrued deferred interest payable not included in the advance amoun t in the table above is $2,442,690.
Development Impact has five advances from the General Fund that bears interest at the prior fiscal year’s average interest rate of the City’s pooled investments. The first advan ce has annual principal payments of $409,042 plus interest with the final payment due in fiscal year 2027. The se cond advance has annual principal payments of $569,440 plus interest with the final payment due in fiscal year 2028. The third advance has annual principal payments of $1,000,000 plus interest with the final payment due in fiscal year 2028. The fourth advance has annual principal payments of approximately $22,000 plus interest through fiscal year 2031 and then annual principal payments of $282,578 plus interest with the final payment due in fiscal year 2042. The fifth advance has annual principal payments of $483,702 plus interest with the final payment due in fiscal year 2035.
Amount
Governmental Activities
Non-Major Governmental Funds:
Non-Major Governmental Funds General Fund 1,990,638 $ (A),(B) Internal Service Funds 584,571 (A)
Total Non-Major Governmental Funds 2,575,209
Enterprise Activities
Non-Major Enterprise Funds Internal Serv ice Funds 55,000 (B) Roseville Natural Gas Financing General Fund 676,173 (A) Total Enterprise Activ ities 731,173
3,306,382$
(A) Current portion of the advances mentioned in 3C below. (B) To cover negative cash balances as of June 30.
Due to Other Funds Due From Other Funds
Amount of Advance
Governmental Activities
Non-Major Governmental Funds General Fund 9,727,118 $
Internal Service Funds 1,653,108
Total Governmental Activities 11,380,226
Enterprise Activities
Internal Service Funds Internal Service Funds 1,945,000 13,325,226$
Fund Receiving Advance Fund Making Advance
63
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: INTERFUND TRANSACTIONS (CONTINUED)
Development Impact has two advances from the Fleet Fund. The first advance bears interest at the prior fiscal year’s average interest rate of the City’s pooled investments p lus one-half percent. Interest only payments were made the first three years of the advance beginning in fiscal year 2015. Annual principal payments of $33,345 plus interest are being paid over an 18-year term beginning in fiscal year 2018 and ending in fiscal year 2035. The second advance bears interest at the prior fiscal year’s interest rate of the City’s pooled investments. In fiscal year 2026 the final payment is due for principal of $424,225 plus interest.
School-Age Child Care advance from the Fleet Fund bears interest at the prior fiscal year’s average interest rate of the City’s pooled investments. In fiscal year 2018 two prior advances and one new $300,000 advance were consolidated into one total advance. In fiscal year 2020, $340,000 was added. In fiscal year 2023, $1,275,000 was added. Annual principal payments of $55,000 plus interest are d ue through fiscal year 2032. The annual principal amount increases to $68,000 through fiscal year 2037 and then increases to $127,500 through fiscal year 2047.
D. Internal Balances
Internal balances are presented in the City-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business - type activities.
NOTE 4: RECEIVABLES
The City combines Accounts, Interest, and Due From Other Agency receivables together and presents this amount as Receivables in the financial statements. These separate receivables are classified below for the Governmental and Proprietary funds:
General
Community
Facilities
District
Non-Major
Governmental
Funds
Total
Governmental
Funds
Governmental
Activ ities
Internal
Service Funds
Total
Governmental
Activ ities
Accounts receivables 23,418,333$ -$ 11,617,811$ 35,036,144$ 73,473$ 35,109,617$ Taxes receivable 3,282,169 - 286,020 3,568,189 - 3,568,189 Interest receivable 730,685 32,490 7,530,650 8,293,825 2,929,021 11,222,846 Total 27,431,187$ 32,490$ 19,434,481$ 46,898,158$ 3,002,494$ 49,900,652$ Electric Water Wastewater
Waste
Serv ices
Non-Major
Enterprise
Funds Total Totals
Accounts receivables 41,007,443$ 9,679,099$ 11,455,758$ 5,076,904$ 12,462,595$ 79,681,799$ Taxes receivable 25,378 - - - - 25,378 Interest receivable 1,095,617 693,990 1,542,867 208,148 37,803 3,578,425 Permits receivables 1,004,531 6,614,701 - - - 7,619,232 Total 43,132,969$ 16,987,790$ 12,998,625$ 5,285,052$ 12,500,398$ 90,904,834$ Business-Type Activities - Enterprise Funds
64
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: NOTES RECEIVABLE
The City engages in programs designed to encourage business ent erprises, construction or improvement in low-to-moderate income housing, or other projects. Under these programs, grants or loans are provided with favorable terms to businesses, homeowners or developers who agree to spend these funds in accordance with the City’s terms. Although these notes are expected to be repaid in full, their balances have been offset in the fund financial statements by unavailable revenue, due to other government agencies or fund balance. Notes receivable were comprised of the following at June 30, 2025:
A. Flood Loan Notes Receivable
The City has provided notes to various homeowners and businesse s for rehabilitation due to flood damage. The maximum note amount is $5,000 carr ying various interest rates and payment dates. The balance of these notes receivable at June 30, 2025 was $6,634.
B. Housing Elevation Notes Receivable
In fiscal year 1997, the Federal Emergency Management Agency (F EMA) approved Hazard Mitigation Grant Program funds to be used for residential home elevation projects in the City at a maximum of $5,000 per household, with the total federal share not to exceed $1,493,096. The City provided matching funds to each eligible household at a maximum of $5,000 in the form of a zero percent, deferred loan payable upon sale, change of title or change of use. As of June 30, 2025, two notes funded through the FEMA Hazard Mitigation Grant Program were outstanding with a total balance of $5,000.
C. Water Meter Notes Receivable
The City entered into an agreem ent with Stonesfair Management f or Water Meter Installations at Windscape Apartments. The original note amount is payable in 120 monthly installments. The balance of note at June 30, 2025 was $12,401.
D. Flood Control Loan
On May 10, 2017, the City entered into an agreement with the Placer County Flood Control and Water Conservation District to fund the Antelope Creek Flood Control project with a loan to be paid back with future development fees.
The loan bears simple interest based on the Construction Cost I ndex. As of June 30, 2025, the loan was fully collected.
E. SPWA Loan
In June 2020, the City entered into loan agreements with the State Water Resources Control Board to secure funding for the Pleasant Grove Wastewater Treatment Plant Expansion and Energy Recovery Projects in the form of loans from the Clean Water State Revolving Fund. The City then enter ed into a reimbursement agreement with the South Placer Wastewater Authority as the Authority was responsible for the completion of these projects. The loans bear interest at the rate of 1.30% and are payable in 30 annual payments beginning on June 10, 2023. The balance of the loan receivable at June 30, 2025 was $91,666,612.
Flood Loan Notes Receivable 6,634$
Housing Elevation Notes 5,000
Water Meter Notes Receiv able 12,401
SPWA Loan 91,666,612
First Time Home-Buyer Notes 2,364,347
Due From Successor Agency 7,849,194
Housing Rehabilitation and Affordable Housing Notes 51,421,116 Westbrook Blv d. Segment 4 Loan 4,785,121
Total 158,110,425$
65
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: NOTES RECE IVABLE (CONTINUED)
F. First Time Home-Buyer Notes Receivable
The City engages in a first-time home-buyer program designed to encourage home ownership among low - income residents. Under this program, grants are provided at no interest and are due upon sale or transfer of the property. Although these notes are expected to be repaid in full, their balance has been offset with deferred inflow of resources, as they are not expected to be repaid during the next fiscal year and any repay ments will be used to reduce future grant draw-downs by the City. The balance of the notes receivable arising from this program at June 30, 2025, was $2,364,347.
G. Successor Agency Loans
Prior to July 1, 2011, the for mer Redevelopment Agency had received various advances from various City funds.
These advances bore interest at the average interest rate of th e City’s pooled investments. Principal and accrued interest on the advances totaled $32,768,517 at July 1, 2011. During fiscal year 2012, the City and Redevelopment Agency determined that certain advances should have instead bee n funded by bond proceeds of the Agency.
Therefore, the Redevelopment Agency repaid advances from the Ci ty in the amount of $7,309,447 prior to the dissolution of the Agency on January 31, 2012.
With the dissolution of the Agency effective February 1, 2012, the Successor Agency assumed the balance of the obligation to repay the advances in the amount of $25,603,129 f or principal and accrued interest and recorded a notes payable to the Low and Moderate Income Housing Asset Fund equal to twenty percent of the balance of the notes. During fiscal year 2013, the State Department of Finance denied the prepaid advance and required the return of $7,309,447 to the Successor Agency. The General Fund returned the cash to the Successor Agency during fiscal year 2013. The Successor Agency received its Finding of Complet ion in August 2013 determining that notes are enforceable obligations.
During fiscal year 2014, the Successor Agency completed its Lon g-Range Property Management Plan which was approved by the Department of Finance in May 2014 and as a resu lt, the Successor Agency transferred land that was designated for governmental use to the City in the amount of $7,107,581. As a result of the transfer, the City cancelled the notes that had been made to the former Redevelopment Agency for the purchase of those properties, including accrued interest, in the amount of $5,902,331.
During fiscal year 2014, the Department of Finance clarified how the interest is to be calculated on each note to the Successor Agency. The City recalculated the interest due on the notes using the revised guidance and as a result the interest receivable was reduced by $3,030,067. The principa l balance of the notes as of June 30, 2025 is $7,849,194.
H. Housing Rehabilitation and Affordable Housing Notes Receivable
The City engages in programs designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, grants or note s are provided under favorable terms to home- owners or developers who agree to spend these funds in ac cordance with the City’s or A gency’s terms.
Although these notes are expected to be repaid in full, their b alance has been offset with a deferred inflow of resources as they are not expected to be repaid during the next fiscal year and any repayments will be used to reduce future grant draw-downs by the City. With the dissolutio n of the Agency effective February 1, 2012, the assets of the Low and Moderate Income Housing Fund, including a ffordable housing notes receivable, were assumed by the Low and Moderate Income Housing Asset Fund. The balance of the notes receivable arising from these programs at June 30, 2025, was $51,421,116.
66
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: NOTES RECE IVABLE (CONTINUED)
I. Westbrook Boulevard Segment 4 Loan
Under the Sierra Vista Specific Plan developer agreement, devel opers are required to build infrastructure upon reaching certain build-out milestones. For segment 4 of Westbro ok Boulevard the milestones have yet to be reached. However, the City determined the Westbrook Boulevard segment improvements included in the developer agreement were needed to improve street accessibility and prevent congestion on streets. The City and a developer entered into agreement in fiscal year 2025 for the City to loan the developer the funds to build the segment sooner.
The loan is expected to be repaid within a three-year time period based on current absorption rates of single-family housing development, but the agreement also provides for repayment in full in not more than ten years. The balance of this loan on June 30, 2025, is $4,785,121.
NOTE 6: DEVELOPER PERMIT FEES RECEIVABLE
The City has entered into a number of agreements with developers to defer permit fees for various projects within the City. Although these fees are expected to be repaid in full, their balance has been offset by unavailable revenue in governmental funds, as they are not expected to be repaid early enough to be reported as a current asset. The receivable was valued at $15,681,722 at June 30, 2025.
NOTE 7: DEVELOPMENT AGREEMENTS
The City may enter into development agreements in an effort to provide incentives to develop new businesses and new tax revenues. The substance of these agreements is that dev elopers or other public agencies w ill be paid a portion of future sales tax or t raffic mitigation fee revenues produced by their developments. These payments are conditioned on the generation of sales tax revenues or traffic mitigation fee revenues by these developments and the City is not required to use any other resources to pay these amounts.
67
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 8: CAPITAL ASSETS
A. Capital Asset Additions, Retirements and Transfers
Capital asset activity for the year ended June 30, 2025, was as follows:
Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Governmental activities:
Capital assets, not being depreciated/amortized
Land 235,514,342$ 24,248,084$ -$ 223,854$ 259,986,280$ Easements (Land) 1,814,353 - - 498,216 2,312,569 Streets 419,008,647 1,243,766 - 8,215,982 428,468,395 Construction-in-progress 205,123,884 101,781,428 - (54,911, 457) 251,993,855 Total capital assets, not being depreciated/amortized 861,461,22 6 127,273,278 - (45,973, 405) 942,761,099 Capital assets, being depreciated/amortized
Buildings 185,028,959 - - 8,861,345 193,890,304 Improvements 50,047,574 82,110 - 6,821,627 56,951,311 Vehicles and equipment 109,449,727 10,433,274 (5,077,742) 925,362 115,730,621 Parks 119,038,247 54,073 - 973,178 120,065,498 Landscaping 77,885,191 302,500 - 1,929,447 80,117,138 Bike paths 16,046,123 - - - 16, 046,123 Bridges 86,023,531 - - 20,351,494 106,375,025 Culverts 21,029,296 - - - 21, 029,296 Curb, gutter,
sidewalk and median curbs 201,112,449 602,135 - 2,911,559 204,626,143 Drain inlets 22,061,941 - - 707,331 22,769,272 Soundwall 53,717,287 455,000 - - 54, 172,287 Stormdrains 147,987,419 519,805 - 1,444,830 149,952,054 Traffic signals 1,817,599 - - 1,052,739 2,870,338 Lease assets
Land improvements 208,246 - - - 208,246 Infrastructure 1,973,178 - - - 1, 973,178 Subscriptions 4,978,304 2,181,563 (175,272) - 6, 984,595 Total capital assets, being depreciated/amortized 1,098,405,072 14,630,460 (5,253,014) 45,978,912 1,153,761,429 Less accumulated depreciation/amortization
Buildings (91,510,052) (4,654,995) - - (96, 165,047) Improvements (19,339,874) (1,082,305) - - (20, 422,179) Vehicles and equipment (80,494,590) (9,029,392) 5,046,140 (5,507) (84,483,349) Parks (66,345,561) (3,599,231) - - (69, 944,792) Landscaping (
55,974,721) (2,864,081) - - (58, 838,802) Bike paths (9,416,223) (456,740) - - (9, 872,963) Bridges (18,962,646) (1,327,601) - - (20, 290,247) Culverts (8,355,779) (280,390) - - (8, 636,169) Curb, gutter, sidewalk and median curbs (156,677,534) (4,308,992) - - ( 160,986,526) Drain inlets (13,002,425) (449,533) - - (13, 451,958) Soundwall (22,824,972) (1,487,339) - - (24, 312,311) Stormdrains (30,270,956) (1,984,618) - - (32, 255,574) Traffic signals (470,289) (113,020) - - ( 583,309) Lease assets
Land improvements (121,957) (41,418) - - ( 163,375) Infrastructure (196,513) (97,755) - - ( 294,268) Subscriptions (2,102,954) (1,620,147) 175,272 - (3, 547,829) Total accumulated depreciation/amortization (576,067,046) (33,397,557) 5,221,412 (5,507) (604,248,698) Tot
al capital assets, being depreciated/amortized, net 522,338,026 (18,767,097) (31,602) 45,973,405 549,512,731 Total governmental activities capital assets 1,383,799,252$ 108,506,181$ (31,602)$ -$ 1, 492,273,830$ 68
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 8: CAPITAL ASSETS (CONTINUED)
Balance Balance
July 1, 2024 Additions Deletions Transfers June 30, 2025 Business-type activities:
Capital assets, not being depreciated/amortized
Land 19,438,885$ -$ -$ 50,279$ 19,489,164$ Construction-in-progress 81,593,306 80,120,444 - (61,658, 007) 100,055,743 Streets 2,304,491 - - - 2, 304,491 Total capital assets, not being depreciated/amortized 103,336,68 2 80,120,444 - (61,607, 728) 121,849,398 Capital assets, being depreciated/amortized
Buildings 40,225,647 - - 8,011,239 48,236,886 Improvements 71,179,170 - (10,000) 8,590,044 79,759,214 Vehicles and equipment 81,280,433 334,795 (1,274,970) 4,108,768 84,449,026 Landscaping 2,421,681 30,445 - - 2, 452,126 Bike paths 6,531,682 - - - 6, 531,682 Bridges 12,022,926 - - - 12, 022,926 Culverts 348,248 - - - 348,248 Curb, gutter, sidewalk and median curbs 1,223,107 - - - 1, 223,107 Drain inlets 75,699 - - - 75,699 Storm drains 164,362
- - - 164,362 Traffic signals 78,083,383 1,478,490 - 1,349,996 80,911,869 Plants and substations 508,873,744 306,171 (277,192) 26,043,665 534,946,388 Distribution 1,838,260,433 33,595,281 (1,137,777) 13,498,509 1,884,216,446 Generation 219,618,604 71,598,773 - - 291,217,377 Subscriptions 2,376,618 - ( 223,228) - 2, 153,390 Total capital assets, being depreciated/amortized 2,862,685,737 107,343,955 (2,923,167) 61,602,221 3,028,708,746 Less accumulated depreciation/amortization
Buildings (12,700,725) (1,149,977) - - (13, 850,702) Improvements (8,446,453) (1,806,653) 1,292 - (10, 251,814) Vehicles and equipment (47,177,189) (7,026,092) 1,272,271 5,507 (52,925,503) Landscaping (1,186,074) (153,948) - - (1, 340,022) Bike paths (4,314,301) (273,376) - - (4, 587,677) Bridges (877,529) (133,590) - - (1, 011,119) C
ulverts (72,181) (4,643) - - (76,824) Curb, gutter, sidewalk and median curbs (385,174) (61,155) - - ( 446,329) Drain inlets (8,435) (1,514) - - (9,949) Storm drains (19,643) (2,191) - - (21,834) Traffic signals (53,728,604) (2,634,206) - - (56, 362,810) Plants and substations (190,832,051) (11,423,721) 187,170 - ( 202,068,602) Distribution (494,854,866) (29,208,425) 239,077 - ( 523,824,214) Generation (127,511,344) (9,936,200) - - ( 137,447,544) Subscriptions (997,753) (513,681) 223,228 - (1, 288,206) Total accumulated depreciation/amortization (943,112,322) (64,329,372) 1,923,038 5,507 (1, 005,513,149) Total capital assets, being depreciated/amortized, net 1,919,573,415 43,014,583 (1,000,129) 61,607,728 2,023,195,597 Total business-type activities capital assets 2,022,910,097$ 123,135,027$ (1,000,129)$ -$ 2, 145,044,995$ 69
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 8: CAPITAL ASSETS (CONTINUED)
B. Depreciation/Amortization Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program is as follows:
C. Streets Covered By the Modified Approach
The City has elected to use the modified approach with respect to its streets. The City’s policy based on current funding is to maintain the arterial and collector roadways at a n average Pavement Quality Index (PQI) of 72 and residential roadways at an average PQI of 67, instead of provid ing depreciation. During fiscal year 2025, the City expended $12,733,694 to preserve its streets. The City estimates that it will be r equired to expend approximately $13,956,605 in fiscal year 2026 to maintain its streets at this condition level.
NOTE 9: LEASES AND SUBSCRIPTION-BA SED INFORMATION TECHNOLOGY ARRANGEMENTS
Leases
Lessee Leases
Lease Liability
As of June 30, 2025, City of Roseville, CA had three active leases. The leases have payments that range from $42,000 to $60,000 and interest rates that range from 0.5770% to 3.3220%. As of June 30, 2025, the total combined value of the lease liability is $1,736,931, the total combined value of the short-term lease liability is $105,655. The combined value of the asset, as of June 30, 2025 of $2,181,424 with accumulated amortization of $457,643 is included within Note 8 – Governmental Activities.
Governmental Activities
General Government 902,961$
Dev elopment & Operations 193,702
Economic Development 386,407
Public Works 11,433,036
Police 159,598
Fire 452,446
Library 7,508
Parks & Recreation 6,642,944
Internal serv ice funds 13,218,955
Total depreciation/amortization expense 33,397,557$
Business-Type Activ ities
Electric 29,649,727$
Water 15,097,304
Wastewater 17,369,345
Waste Services 221,936
Local Transportation 1,859,616
School-Age Child Care 131,444
Total depreciation/amortization expense 64,329,372$
70
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 9: LEASES AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY AR RANGEMENTS (CONTINUED)
Lease Assets
Balance as of Balance as of Due within
July 1, 2024 Additions Reductions June 30, 2025 one year Governmental Activities
Land Improvements 86,956$ -$ 41,608$ 45,348$ 41,849$ Infrastructure 1,753,339 - 61,756 1,691,583 63,806 Total Lease Liability 1,840,295$ -$ 103,364$ 1,736,931$ 105,655$ Lease type
Fis cal Year Principal Interes t Total
2026 105,655$ 56,346 $ 162,001 $
2027 69,424 54,076 123,500
2028 68,115 51,885 120,000
2029 70,378 49,622 120,000
2030 72,716 47,284 120,000
2031 - 2035 408,787 198,461 607,248
2036 - 2040 540,122 122,586 662,708
2041 - 2044 401,734 27,121 428,855
Total 1,736,931$ 607,381 $ 2,344,312 $
Amount of
Lease Accumulated
Assets Amortization
Land Improvements 208,246 $ 163,375$
Infrastructure 1,973,178 294,268
Total lease assets 2,181,424$ 457,643$
Governmental Activities
Lease type
71
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 9: LEASES AND SUBSCRIPTION-B ASED INFORMATION TECHNOLOGY AR RANGEMENTS (CONTINUED)
Lessor Leases
Lease Receivable
The value of these lease receivable for governmental and business-type activities is described below:
Deferred Inflows of Resources
The City leases land, infrastruct ure and buildings to various c ompanies and individuals. As of June 30, 2025, the value of the leases receivable is $15,438,614 and $592,773 respectively for governmental and business-type activities.
GOVERNMENTAL ACTIVITIES: Balance as of Balance as of
July 1, 2024 Additions Reductions June 30, 2025
Lease Receivable
Buildings 2,425,388 $ - $ 567,150$ 1,858,238 $ Infrastructure 12,582,488 - 424,652 12,157,836 Land 1,611,656 - 189,116 1,422,540 Total Lease Receivable 16,619,532$ -$ 1,180,918$ 15,438,614$ BUSINESS-TYPE ACTIVITIES: Balance as of Balance as of
July 1, 2024 Additions Reductions June 30, 2025
Lease Receivable
Buildings 742,577$ -$ 110,524$ 632,053$ Total Lease Receivable 742,577$ -$ 110,524$ 632,053$ GOVERNMENTAL ACTIVITIES: Balance as of Balance as of
July 1, 2024 Additions Reductions June 30, 2025
Deferred Inflow of Resources:
Buildings 2,342,583$ -$ 548,918$ 1,793,665$ Infrastructure 12,083,045 - 703,073 11,379,972 Land 1,547,104 - 191,323 1,355,781 Total Deferred Inflow of Resources 15,972,732$ -$ 1,443,314$ 14,529,418$ BUSINESS-TYPE ACTIVITIES: Balance as of Balance as of
July 1, 2024 Additions Reductions June 30, 2025
Deferred Inflow of Resources:
Buildings 711,327$ -$ 118,554$ 592,773$ Total Deferred Inflow of Resources 711,327$ -$ 118,554$ 592,773$ 72
CITY OF ROSEVILLE, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 9: LEASES AND SUBSCRIPTION-B ASED INFORMATION TECHNOLOGY AR RANGEMENTS (CONTINUED)
Subscription-Based Information Technology Arrangements
The City of Roseville is a subscriber for noncancellable subscriptions of information technology services. The City of Roseville recognizes a subscription liability and an intangible subscription asset in the government‐wide financial statements. The City of Roseville recognized subscription liabilities with an initial, individual value of $75,000 or more.
At the commencement of a subscription, the City of Roseville in itially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequen tly, the subscription asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments related to subscriptions include how the City of Roseville determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.
• The City of Roseville uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City of Roseville generally uses its estimated incremental borrowing rate as the discount rate for subscriptions.
• The subscription term includes the noncancellable period of th e subscription. Subscription payments included in the measurement of the subsc ription liability are composed o f fixed payments that the City of Roseville is reasonably certain to exercise.
The City of Roseville monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if cert ain changes occur that are expected to significantly affect the amount of the subscription liability.
As of June 30, 2025, City of Roseville had 10 active subscriptions. The subscriptions have payments that range from $54,480 to $628,416 and interest rates that range from 2.1120% to 3.6310%. As of Ju ne 30, 2025, the total combined value of the subscription liability is $4,133,259, and the total combined value of the short-term subscription liability is $1, 720,392. The combined value of the asset, as of J une 30, 2025 of $9, 137,985 with accumulated amortization of $4,836,035 is included within the Subscription Class activities table found below.
Amount of
SBITA Accumulated
Assets Amortization
6,984,595$ 3,547,829$
Amount of
SBITA Accumulated
Assets Amortization
2,153,390 1,288,206
Total 9,137,985$ 4,836,035$
Subscription Type
Software as a service
Governmental Activities
Business-type Activ ities
Subscription Type
Software as a service
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