Budget Meeting: Roseville Faces $1 Million Budget Gap Increase

With a $1 million increase in Roseville’s structural deficit, city employee pension plans will likely continue to be front and center on the negotiating table for the 2013-2014 fiscal year.

While there are “modest” increases in city revenues, according to City Treasurer Russ Branson, the influx is still not enough to put the city’s general fund back in the black.

City managers face reconciling a $5.5 million structural deficit, 4.5 percent of the city's general fund.

Officials will offer a look at these figures, as well as possible cost-reducing initiatives during a city budget meeting Tuesday, March 5. It is set to begin at 5:30 p.m., in council chambers at 311 Vernon St.

Branson, also assistant city manager, said city officials are not proposing making cuts to any specific city services or cutting employees. However, city officials had hoped labor negotiations last year would help cut the ongoing deficit.

“We are currently working on employees sharing in the cost of their pensions as a major cost reduction effort,” said Branson. “We also look for ways to consolidate services or provide them in a less-expensive way.”

Councilwoman Bonnie Gore said the city will need to make some tough decisions in the future.

"We are not out of the woods yet,” Gore said. “And the economy looks like it is going up but there are no guarantees. So, we need to continue to tighten our belts and that can be difficult.”  

Still crunching the numbers Friday, Branson did not specify by how much sales and property tax revenues are expected to increase.

He said, however, increasing costs include CalPERS fees. The city did not have a structural deficit in 2011, Branson said. He said increases in CalPERS fees in 2012 and the slowing economy contributed to the current shortfall.

If not reconciled, the city will continue to carry over savings from previous years to help keep the budget balanced, explained Branson.

The city's current general fund operates under a $121 million budget. Tax revenues are generated to pay for city parks, libraries and the police, fire, public works, planning and administrative departments.

However, the city's total operating budget - including the general fund, Roseville Electric operations and enterprise funds - totals $406 million, Branson said. However, he upheld, only funds generated from tax revenues can pay for general fund expenditures.

Vice Mayor Carol Garcia remains optomistic regarding the city's future funding and the economy. 

"I don’t think we are going to hit another (economic) downturn," said Garcia, adding she is confident city staff and employees will reach an agreement.  

The city council is not expected to vote at the meeting. City staff is scheduled to present an initial draft budget to the city council on May 15. In addition, budget hearings are planned for June 10. Roseville’s city council is slated to vote on the budget on June 19, said Brian Jacobson, interim city spokesman.

Tuesday's meeting will broadcast on Cable Government Comcast Channel 14 and Surewest Channel 73.

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