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Roseville’s revenues up — but so are expenses

Council members say cuts must be made
By: Sena Christian, Staff Reporter
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Action Taken

Here’s a look at some other items approved during the Feb. 20 council meeting:

Resolution of commendation for Jack Wallace: Resident Jack Wallace was honored for his long-term dedication to serving the citizens of Roseville. The city will put a permanent engraved name plate to be fixed to a chair in the council chambers.

Residential waste containers purchase: Environmental Utilities’ Solid Waste Division will buy about 5,500 of the 96-gallon black waste cans and 1,100 of the 96-gallon green recycling cans this year for an estimated cost of $375,659.

Plumbing services agreement: The city will use Cobabe Brothers Plumbing for a total three-year cost of $225,000 for plumbing projects such as repairing water pipes, unclogging sewer lines and installing water heaters.

Fertilizer purchase: The city will use Crop Production Services for fertilizer for an annual cost of about $208,464

Vehicle purchase: The Environmental Utilities Department will purchase a Ford F150 pickup truck for $22,786 to be used by water quality lab technicians to collect wastewater samples for National Pollutant Discharge Elimination System compliance and process control monitoring at the Dry Creek and Pleasant Grove Wastewater Treatment Plants.

Pleasant Grove Wastewater Treatment Plant rehab project: A budget of $435,000 was previously approved for the project, but staff is requesting an additional $75,000 in Wastewater Rehabilitation Funds to fund the additional project design, construction management services and replacement of the grit chamber covers. The revised total cost is $510,000 and is funded through the city and other South Placer Wastewater Authority Partners. The city’s share is $320,025.

~ Sena Christian

 

The city of Roseville expects to end this fiscal year with a $1.6 million balance, but a city official warns that although revenues have gone up, expenses are up even more.

Councilwoman Bonnie Gore said during Wednesday’s council meeting that the city will be faced with making some “hard line” decisions to cut expenses.

In his mid-year budget review, City Treasurer Russ Branson said all of Roseville’s major budgets and funds are expected to end the 2013 fiscal year in the black, but that’s been dependent on an unsustainable practice of using carryover funds.

“Revenues are up,” Branson said “They continue to go up. But the bad news is the expenses are up a little more. We continue to rely on carryover to balance the budget … but that’s money we could have had to use for something else. (That’s) really a practice we can’t continue indefinitely because at some point it’s not going to be there for us to use.”

General fund expenses are up by $4.7 million, and about $1.7 million of that is due to the employee share of CalPERS, $1.2 million more in salaries and benefits, $1.04 million in materials, services and supplies, and $660,000 in retirement payoff. Revenues of $1.2 million offset some of that, leaving a net increase of $3.45 million.

Labor costs have started to stabilize, but CalPERS costs are going up, Branson said, adding that the city is still in negotiations with labor groups over compensation reductions.

“I’m disappointed we haven’t been able to get the savings that we budgeted for last year with our negotiations,” Councilman Tim Herman said. “That’s really very disappointing that we know what we need to do to keep the city financially stable for the future and not kick the can down the road … and we can’t get there.”

Roseville has generated $1.1 million more in sales tax than projected. Property tax revenue is also up over the projection, but down from the year before. So there’s been a negative trend, but not as bad as expected, Branson said. The city received $375,000 in property tax revenue due to lower county administrative fees, following a statewide lawsuit.

The city runs the Woodcreek and Diamond Oaks golf courses, and both funds are in good shape and revenue is up from last year. The city’s Adventure Club is still recovering from the poor economy, Branson said.