Roseville expects to end 2012 fiscal year in the black
Roseville's treasurer says cost-cutting measures and increasing sales tax revenue has put the city in a good financial position for its 2013 budget.
The city expects to end the 2012 fiscal year with a $1.8 million general fund balance. Roseville still has a structural deficit, which means its expenses are higher than revenues.
"Overall, we're doing pretty well," said City Treasurer Russ Branson, during the Feb. 15 city council meeting.
His department looked at more than 80 funds in its mid-year budget review. The city council will adopt the 2013 budget in June.
"Overall, our revenues are down on the general fund but we do see sales tax trending up pretty well," Branson said. "They've been pretty consistent the last five or six quarters. Property tax is still a big question mark, so we'll be working with the county to figure out what that is."
Revenues are down for the city's golf club, which Branson said is due to the economy and to a maintenance error that caused the closure of a portion of Woodcreek Golf Club's greens for several months. Revenues are also down for the Adventure Club childcare program, which operates at several schools.
The city's carry-over amount from fiscal year 2011 was $3.5 million higher than expected, allowing Roseville to fully fund its general fund reserve at 10 percent of operating expenses. The city has used expense reductions and carry-over money to balance its general fund.
Last year, staff created a five-year strategic plan to move the city out of a structural deficit.
"The good news is the plan is working exactly as we hoped it would," City Manager Ray Kerridge told the Press Tribune. "We need to continue what we're doing now. We're not out of it yet."
Kerridge said this plan involves steps to continue cutting costs, in part through negotiations with bargaining groups. The city hopes to have more employee groups pick up the employer's share of CalPERS. Branson said the city doesn't expect any salary increases in the 2013 fiscal year.
Kerridge said he's urging managers to run their departments like a business.
"If we were Coca Cola, we'd have two or three business lines we run," Kerridge said. "As an organization, we run 15 different business lines and this is not uncommon for a full-service city. ... We want to look at every department from a business perspective. We want to grow and protect our business."
Staff will provide monthly budget updates during city council meetings and expects to hold budget workshops starting in April.
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