BACKGROUND
CITYWIDE BUDGET
Fiscal Summary: The FY2021-22 proposed expenditure/expense budget totals approximately $571 million from all funding sources. The total expense budget for the General Fund is approximately $182 million, which includes operating ($176 million) and non-operating ($6 million). The General Fund budget is balanced with revenues equal to expenses.
Positions: Following is a summary of position allocation changes included in the FY2021-22 proposed budget. The proposed budget includes a net increase of 40.25 positions to address critical service level requirements. These positions are recommended to address current workload demands, comply with increased regulations, and increase service levels in high-priority areas. The following table summarizes the recommended positions by Department.
|
Department
|
Positions
|
|
Total Current Citywide Positions
|
1,220.23
|
|
City Manager
|
1.00
|
|
Development Services
|
2.00
|
|
Economic Development
|
1.00
|
|
Electric
|
5.00
|
|
Environmental Utilities
|
13.00
|
|
Human Resources
|
1.00
|
|
Parks, Recreation & Libraries
|
9.00
|
|
Police
|
3.00
|
|
Public Works
|
5.25
|
|
Total Position Changes
|
40.25
|
|
Total Citywide Positions in FY2021-22 Budget
|
1,260.48
|
In addition, the citywide position allocation schedule is incorporated into the FY2021-22 budget document.
City Council Goals: The following City Council goals guided the budget process. The FY2021-22 budget document highlights the budget augmentations, City services, and performance measures that align with these goals.
• Remain fiscally responsible in a changing world
• Support community engagement and advocacy
• Maintain a safe and healthy community
• Enhance economic vitality
• Deliver exceptional city services
• Invest in well-planned infrastructure and growth
Measure B: The proposed budget includes $21 million in Measure B local sales tax revenues. These revenues continue to allow the City to maintain current service levels, restore services, and strategically invest in high-priority areas while still achieving a balanced budget.
Process: The proposed budget is the result of an extensive process that included a City Council strategic planning workshop, budget development updates, a utilities budget update, a Capital Improvement Program budget overview, financial policies update, and a budget hearing.
Outreach: The budget process included a public outreach effort that involved publishing budget information on the city website, including the budget in brief document, e-newsletters, and social media.
General Fund Stabilization Reserve: The FY2020-21 budget assumed that the General Fund would require $2.1 million from this fund to balance the budget. Stronger than anticipated property and sales tax indicate that this transfer will not be necessary. The FY2021-22 budget includes a transfer of approximately $2.5 million from the General Fund into the Stabilization Reserve to bring the total reserve balance to $23.8 million. The $23.8 million, in addition to the $2.1 million in additional resources mentioned above, will bring the total balance of this reserve to $25.9 million or 15 percent of the General Fund operations budget. The purpose of the General Fund Stabilization Reserve Fund is to allow time for the City to restructure its operations deliberately as required in an economic downturn to minimize service disruption.
General Fund Emergency Reserve: The FY2021-22 budget includes a transfer of approximately $1.2 million from the General Fund into the Emergency Reserve to bring the total reserve balance to $17.3 million or 10 percent of the General Fund budget before transfers to reserves. The purpose of this reserve is to have the ability to fund significant short-term issues such as expenditures during declared emergencies should the need arise.
Budget Ordinance: The annual budget ordinance includes the following modifications:
• Section 3.4 – Adjusted section clarifying that the City Manager and Assistant City Manager/Chief Financial Officer must ensure that the budget complies with City Council approved financial policies.
• Section 3.5 – Added section authorizing the City Manager or designee to increase the Fiscal Year 2021-22 budget for the remaining unspent appropriations from the prior fiscal year for City Council approved fleet replacement.
• Section 3.6 & 3.7 – Added language clarifying that Capital and Non-Capital project appropriations shall solely be used for the original purpose approved by the City Council.
• Section 3.8 – Added language to require City Council approval to establish a new Capital Improvement Project or Non-Capital Improvement project or cancel a project (without completion).
• Section 3.10 – Adjusted language to clarify process to close completed or inactive projects. .
• Section 3.16 – Adjusted section to require that staff seek City Council approval for all changes to the citywide budget, except as otherwise authorized in the annual budget ordinance.
ROSEVILLE HOUSING AUTHORITY BUDGET
The Roseville Housing Authority (RHA) was formed in October 1974 and administers the Housing Choice Voucher (HCV) Program which provides rental assistance for low-income residents in order to access quality, affordable, and safe housing. RHA ensures housing stability and economic self-sufficiency for up to 735 families, seniors, disabled persons, and veterans annually. Rental assistance for income-qualified participants is paid directly to property owners who participate in the HCV Program. The Housing Authority receives funding from the Federal Department of Housing and Urban Development (HUD). Roseville’s HCV program infuses over $6.5 million of federal funds into the local economy each year including administration revenue which covers most of the staff costs to administer the program.
RHA is a separate legal entity from the City; and therefore its budget is approved by its Board of Directors who are represented by the City Council. Activities related to administering the program are performed by City employees who charge a majority portion of their time to the program. Financial activities are audited annually as part of the City-wide audit; and its financial statements are included in the City of Roseville’s annual comprehensive financial report.
Budget Analysis: RHA has one fund that accounts for its activities with revenues and expenditures presented in the attached Fund Summary (Attachment B) which also includes its restricted and unrestricted fund balances. The detail for the FY2021-22 revenues and expenditures are presented in the Budget Item Detail (Attachment A) and are further discussed below. RHA has budgeted $5,634,072 for housing assistance payments revenue (HAP) for all vouchers. When a participating household finds rental housing that meets program requirements, written agreements are signed between the owner, tenant and RHA, outlining their respective rights and responsibilities. Program participants pay a share of the rent based on their household income, and RHA pays a calculated amount of rental assistance directly to the property owner each month.
Rental Assistance Programs & Family Self-Sufficiency Funding/Revenue – Administration
RHA administers Regular, Non-Elderly Disabled (NED), Veterans Affairs Supportive Housing (VASH), Mainstream and Project-Based Vouchers. Each year, the Housing Authority also participates in HUD’s Family Self-Sufficiency (FSS) Program, which enables families assisted through the HCV Program to increase their earned income and reduce their dependency on state and federal assistance and rental subsidies. In this program, participants elect to divert a portion of their housing assistance payments to an interest-bearing account. During their participation in the FSS program, participants set goals to decrease their dependency on rental assistance. Once participants complete the required objectives of their program plan, they can access the savings account and use the funds for a variety of needs, such as a down-payment on a house, a car, education loans, or other items that further their self-sufficiency goals. HUD awards FSS grants to Housing Authorities who compete for the funding. The FSS funding for FY2021-22 of $72,000 offsets a portion of the salaries and benefits of the program coordinator and other staff who help administer the program.
Administrative and Other Miscellaneous Revenues
RHA earns administrative revenues based on the number of vouchers that have been leased up. The estimated revenues total $744,711. RHA also administers a portion of the HCV Program for tenants that live in the City of Rocklin and charges the City of Rocklin a minimum administrative fee in order to recoup costs for this service. The administrative fee budgeted for FY2021-22 is $27,500 and is based on an existing agreement with Rocklin. Interest, Portability Billing and Fraud Recovery is estimated to be $7,950 for a total of $780,161.
Personnel and other Administrative Costs
The following table illustrates the estimated revenues and estimated expenditures needed to successfully run the HCV program in FY2021-22. Materials, services, supplies and indirect costs total $175,890 and salaries, wages and benefits are $680,290 for a total of $856,180. The difference between the costs and the revenues are covered by the General Fund. This difference is 10% of the total administrative costs, as shown below:
|
HAP Admin funds earned from projected lease-ups
|
$672,711
|
|
FSS Administrative funds
|
$72,000
|
|
Other Revenues (Rocklin, Repayments and Interest)
|
$35,450
|
|
Total Available Revenues & Resources
|
$780,161
|
|
|
|
|
Materials, Services, Supplies & Indirects
|
$175,890
|
|
Salaries, Wages & Benefits
|
$680,290
|
|
Total Administrative Costs
|
$856,180
|
|
|
|
|
Variance = Costs covered by the City's General Fund
|
$76,019
|
The 10% contribution from the City’s General Fund (16% in FY2020-21) is the difference between the Housing Authority's administrative revenues and the costs to run the program on an annual basis. The funds needed to run the program effectively are not currently available from HUD due to their annual proration policies. This contribution from the General Fund provides a guarantee that the HCV program can continue to provide rental assistance to very low-income families in Roseville and Rocklin.
ROSEVILLE FINANCE AUTHORITY BUDGET
Debt service payments of $2,377,289 reflect scheduled payments on the Certificates of Participation (COPs) for the Corporation Yard and 316 Vernon Street. The Authority has issued other bonds and COPs, but that debt service is reflected in the City's budget within each respective fund. For community facilities district (CFD) bond issues, the Authority acts as a conduit to collect payments through the County property tax levy process for the repayment of outstanding debt of these special districts.
Transfers out of the Roseville Finance Authority Capital Projects Fund of $414,351 represents funding transferred to the Citywide Parks Fund for the repayment of a loan from the Fleet Replacement Fund which funded a portion of the construction of Harry Crabb Park.
The Roseville Finance Authority budget for FY2021-22 is available in attached C.