The Roseville City Council established multi-year priorities for the City. These are ranked as follows and supported in the FY2017-18 budget:

Read the entire City Manager's message.

Public Safety

Maintaining adequately staffed and trained police and fire departments, including neighborhood patrols, crime-prevention programs, and emergency personnel, is vital to protecting Roseville’s quality of life and maintaining rapid emergency and medical response times.

Low crime rates and community policing
Roseville’s 2016 total crime rate fell 2 percent from 2015 levels and is still far lower on a per-capita basis than it was 20 years ago. The city’s violent crime rate remains one of the lowest in the Sacramento region. The city’s rate of property crime runs higher than the state average due to active and thorough reporting by the community, our large retail sector, and our position as a more affluent community with a low fear of crime.

The Police Department is committed to the principles of community-oriented policing, using partnerships and problem-solving techniques to proactively address the immediate conditions that give rise to public safety issues such as crime, social disorder, and fear of crime.

Rather than simply responding to crimes once they have been committed, community policing concentrates on preventing crime and eliminating the atmosphere of fear it creates. Earning the trust of the community and asking residents and businesses to be stakeholders in their own safety enables law enforcement to better understand and address both the needs of the community and the factors that contribute to crime.

In addition to patrol, the department’s services include criminal investigations, vice and narcotics investigations, crime suppression, traffic enforcement, youth service officers in the schools, animal control, social services, and youth intervention services in partnership with the Roseville Police Activities League.


Police staffing analysis for a changing environment
The Police Department is maintaining its authorized staffing levels through targeted recruiting and efficient hiring programs. It’s striving to hire the best entry-level and experienced new employees, in both the sworn officer and professional staff ranks. The department strives to maintain high standards and quality service by carefully selecting qualified candidates, training them well, and providing the best possible continuing professional development for all employees.

Our community will continue to grow, and the state’s criminal justice system continues to work to reduce incarceration rates in favor of community-based supervision of offenders. The Police Department will continue to evolve, too, modifying our strategies to adapt to the changing criminal justice environment and the needs of our community.

To do that effectively, it will continue to build on its strong partnerships with other City departments, law enforcement agencies, social service agencies, community organizations and the business community. One of the major missions of its newly formed Social Services Unit is to build and enhance those intra-agency and community collaborations so it can meet community challenges with a comprehensive, coordinated community response.

An outside consultant recently completed a staffing analysis and presented the findings to City Council. The findings of the report are consistent with other departmental performance audits, which identified the need for additional staff to maintain service levels. The analysis will help City and police department leaders establish goals to provide high-quality service


Building trust in our community
The Police Department is focused on continuing to build trust in our community. The department hosts community events throughout the year, and representatives regularly attend neighborhood association meetings and other community events. Another way the department strives to build trust is through accountability and transparency.

The department maintains a Professional Standards Unit that regularly updates policies, conducts internal audits of critical procedures, oversees professional standards, oversees professional training standards, and investigates citizen complaints and other matters of concern. The department responds to inquiries from the public in a timely manner, and endeavors to provide as much information as circumstances and the law allow.

The department strives to maintain an organizational culture that values public trust, inclusion, professional competence and service.


Police Social Services Unit
The goal of the Social Services Unit is to bring various stakeholders to the table in an effort to provide resources and support with long-term stability for individuals.

The Social Services Unit engages various community-based organizations, non-profit organizations, and City and county departments to establish a comprehensive social services plan for those needing support. The unit is managed by a social worker and consists of a sergeant, problem-oriented policing (POP) officer and youth-service officers. It has patrol officers trained in mental health who serve on its mental-health team.

Its officers work in conjunction with mental health and service advocates, practitioners, social workers, and interns to provide resources and referrals. It also has an embedded Placer County Probation Officer and the support of a county mental-health practitioner who both work exclusively with a caseload that comprises homeless individuals currently on probation. Social work interns who are earning their degrees from California State University at Sacramento also provide direct resourcing and support to homeless individuals and families.


Fire response times and service levels
Fire stations are located throughout the community in order to strategically place resources within an acceptable response time. Response time is one of the most important measurements of fire department performance. Response times and resources are evaluated on a regular basis to ensure that the Fire Department is providing the most efficient and effective services to the community.

The population and geography of Roseville continue to grow, which have affected response times within our districts. To maintain acceptable response times as our city grows, we must eventually build capacity within our budget to fund construction of a new fire station and the estimated $3 million annual cost if it is staffed according to current staffing models.


Staffing vacancies
Staffing vacancies continue to be a priority for the Fire Department. FY2016-17 saw a large number of retirements, which left the department with several vacancies going into FY2017-18. The Fire Department has begun the recruitment process and is looking to hire in the Firefighter/Paramedic I classification in the first few months of FY2017-18. The goal is to have these individuals on shift in late summer or early Fall of 2017.


Relocation of Fire Station No. 1
Construction has begun on a modern facility for downtown’s Fire Station 1. The station is expected to be completed in Spring 2018. Relocation of crews and equipment will occur as soon as the new station is ready for occupancy.


Evolving service model
The scope of emergency response from the Roseville Fire Department has changed over time. The department that was initially organized for fire response now responds primarily to medical calls, and continues to respond to fire, technical rescue, hazardous materials, major causality incidents, and other types of emergency calls.

The Fire Department is working to identify new service-delivery models to maximize efficiencies and live within budgetary constraints. By optimizing the deployment and staffing of response units, overall costs can be reduced. The department will be studying the effectiveness of the number and type of units sent on responses along with the number of personnel those units are staffed with to provide a comprehensive analysis of its service-delivery models.

The goal of this effort is to provide a high level of safety and customer service while reducing costs.


Use of GPS in Location-Assisted Dispatching
With a goal to improve response times, the City’s Public Safety Computer Aided Dispatch (CAD) system sends the closest unit to an incident, decreasing call processing times as well. This is made possible by the recent installation of GPS units on fire apparatus, which constantly report their location to CAD. When an emergency call comes in to Dispatch, CAD is then able to recommend the closest fire unit with the appropriate capabilities and the shortest travel time to the incident.


Additional Revenue Sources

The department continues to explore new revenue streams, including maximizing use of the Fire Training Center in instances where full cost recovery can be maintained.

Fiscal Soundness

The adoption of the FY2017-18 budget marks the third year since the City implemented a strategy to balance General Fund operational expenses with operational revenues, without the use of one-time funds. We will be making some one-time capital acquisitions with one-time Council approved funds that were available after the close of the prior fiscal year.

This strategy has now become institutionalized into the budget philosophy and has helped contribute to the financial stability of the City. As in previous years this balancing of resources involves compromises when funding competing priorities of the City. The FY2017-18 proposed budget addresses many of these priorities; and although it is balanced, it does not fully fund all of the City’s obligations. This is a goal towards which the City has made progress the past two years, however long-term obligations are still not completely funded.

With cost pressures continuing to rise and revenue increases continuing to slow, the priority in this year’s budget was once again to pay our mandatory obligations first, such as existing contracts, PERS costs, debt, and salaries, and then to prioritize services with remaining resources. In an effort to balance the budget during the recession, several categories of operating expenses were underfunded.

As the economy has improved, City Council has made significant progress towards reversing this trend and attaining long-term fiscal soundness. As a result, the City has successfully implemented several long-term solutions. Among these solutions is the policy to fully fund the Workers’ Compensation internal service fund (ISF), the Vehicle Replacement ISF, the General Liability ISF, and the Litigation Reserve Fund.

This chart shows the required vs. actual funding levels of three ISFs for four years. As can be seen, these three funds have now been fully funded for three years. The Litigation Reserve Fund is not treated as an ISF but it is funded at 100 percent.

Internal Service Funds

In addition to these three internal service funds, for FY2017-18 the City created two new ISFs to more accurately report the true costs of our operating functions. These new ISFs are in the areas of information technology and building maintenance. As with the other ISFs, these services will now be included as a line item expense, and paid directly by our operating departments instead of being treated as separate IT and Central Services departments. The total budgeted costs for Police; Fire; Parks, Recreation & Libraries; and all other departments will now include their share of these service costs.


Budget challenges facing the city

The following information outlines some of the challenges we are still facing and is followed with a discussion identifying what the City is doing to address them.

Capital Improvement Plan and Rehabilitation of Assets - Costs for infrastructure maintenance and replacement is increasing in all areas— from building maintenance to technology to capital improvements and rehabilitation. The 10-year capital improvement plan has identified approximately $56 million of underfunded needs or about $5.6 million per year.

For the past several years the General Fund has been funding about $1 million per year when the actual funding level should have been closer to $5 million. This has resulted in deferred maintenance occurring throughout the City. The proposed FY2017-18 budget will fund $1.6 million of General Fund revenue towards this program, and defer $4 million to future years. The following chart shows the required vs. actual funding level of the various CIP accounts being proposed for the FY2017-18 budget.

Capital Improvement Project Funding


Streets and roadways - Funding challenges for roadway infrastructure have caused the City to fall behind on its maintenance schedule for streets. The passing of SB1 by the State Legislature in April 2017 will enhance our ability to maintain our roadways but won’t close the gap. Currently, roadway maintenance is about $50 million underfunded.

The gas tax is the primary funding source for streets and roadways. Gas-tax rates, accrued on a per-gallon basis, were developed without an adjustment for inflation, minimizing their purchasing power with every year that passes. Gas-tax revenues have fallen also due to more fuel-efficient vehicles being on the road, reducing the demand for gasoline.

The City has identified an average, annual ongoing need of $9-10 million per year. The City annually funds $4-5 million per year from Gas Tax, Local Transportation, Utility Impact Reimbursement, and Federal Regional Surface Transportation program funds, leaving a shortfall of $5 million per year, or $50 million for the next 10 years.

The FY2016-17 budget included $13.37 million for roadway maintenance which addresses the reconstruction of 3.7 miles of roadway. For FY2017-18, the City is budgeting another $7.27 million for 16 miles of roadway resurfacing. It should be noted that the funding levels for both FY2016-17 and FY2017-18 are an anomaly and have unusually high dollar amounts due to a number of one-time factors, as well as a consolidation of multiple- year spending. These anomalies are described below:

  • This summer’s storm-drain work has been planned for several years. Over that time, the City has accumulated over $2 million in the storm-drain account for storm-drain repair/upgrades.
  • The City obtained a Federal Congestion Mitigation and Air Quality (CMAQ) grant to help fund handicap-ramp improvements.
  • Several projects, including the roller-compacted concrete pilot project, are being funded from a one-time $6.5 million contribution from the Transportation Fund.
  • Two non-Gas Tax funded capital improvement projects are paying for some of the street reconstruction work.
  • Funding for FY2018-19 and beyond is expected to return to the normal $4-5 million level.


Citywide parks
- Roseville has an extensive and beautiful park system, and the community is highly motivated to maintain the high standards to which it has become accustomed. However, funding these standards has a cost that must be considered.

The funding of parks can be grouped into two categories: funds required to build a park and funds required to maintain a park. In many instances, parks are built by developers and maintained by community fees. However, citywide parks do not fall in this category, resulting in all costs being borne by the General Fund.

We are taking a pause on construction of citywide parks, including additional phases of existing parks, due to concerns regarding additional maintenance costs to an already stressed General Fund. As potential viable maintenance funding alternatives are identified, it could allow us to proceed with construction projects for Crabb and Central parks; however, each park will likely require additional phases to complete the projects due to escalating constructions costs in the area.

While delays are not ideal, it provides time to engage the community in dialogue about balancing desired service levels and project priorities with corresponding revenues.


Labor costs - Since municipal government is primarily a service provider as opposed to a manufacturer, a significant portion of the City’s budget is related to salary costs. As a result, any cost increases to labor have a significant impact on budgeted expenses. The City Council’s policy direction is intended to provide long-term fiscal stability related to labor costs by ensuring consistency among labor groups within our workforce and developing strategies to contain costs. In partnership with our labor groups, we have taken proactive steps over the past couple of years, which included:

  • Controlling pension costs by transferring the responsibility to employees to fund 100 percent of the employees’ share of pension costs: This has significantly reduced pressure on the City’s budget.
  • Capping liability for retiree-health benefits: A defined-contribution plan is offered to new employees instead of the defined-benefit plan that previously existed. This means that employees, along with the City, contribute to saving for their retiree-medical benefits; and that the City’s cost associated with the defined-benefit plan will eventually be zero.
  • Setting salary-level targets at median levels in labor-market comparison: Salary schedules for new employees have been reduced up to 21 percent to reflect median salaries in the labor market.
  • Reducing the rate of annual merit-based increases within each salary range: The previous pay scales allowed for 5 percent increases between each step in a salary range. Now, new employees are eligible for increases no greater than 2.5 percent between each step in the range. This extends the time it takes to reach the highest level in the pay range, which can now be up to 15 years, slowing the growth rate of this expense.

 

Retiree health or "Other Post-Employment Benefits (OPEB)"- Costs for those employees who will receive retiree health benefits are continuing to grow as healthcare premiums and Medicare costs increase. As discussed later, the City eliminated this benefit for employees hired after 2012. However the latest available actuarial report as of June 30, 2015, for those employees who receive this benefit, shows a General Fund actuarial accrued liability (AAL) of $206 million.

Of this amount, the General Fund has an unfunded liability of $102 million and the City in total has an unfunded liability of $152 million. The proposed FY2017-18 budget will fund $7.6 million toward this liability, while the actual annual amount needed to fully fund this liability is closer to $12 million per year. The City has taken a two-fold approach to ensuring long-term fiscal stability related to these retiree health costs by creating policies to appropriately fund current obligations and limit future liabilities.

Funding current obligations - To provide long-term sustainability for retiree medical expenses, the City created an OPEB trust in February 2011 with an initial contribution of $34 million. Since that time, the City has been committed to funding this obligation by directing a certain percentage of annual salary costs to the fund. That percentage has been about 3 percent of total salary for the General Fund for the past several years. Since the current required payment to meet a fully funded status is approximately 8 percent of salary, a new policy has been put in place to increase the funding of this obligation each year. It should be noted that the utilities have been funding 100 percent of their obligation.

Beginning in FY2016-17, the new policy directs the annual General Fund payment to the trust to increase by $750,000 each year until the annual funding level is equal to the annual required contribution (ARC) determined by the actuaries. As compared to FY2015-16 funding, the funding level in FY2016-17 was increased by $750,000; in FY2017-18 it was increased by $1.5 million and in FY2018-19 it is expected to increase by $2.25 million. If this pattern continues, the City is expected to contribute the full ARC in FY2023-24. This time frame is dependent upon several variables such as market rate of returns and employee retirements, and thus will be updated annually.

The trust has performed well in the equity markets, and when combined with the increased contributions, had a fund balance of $54 million as of June 30, 2015 which has now grown to $63.6 million as of December 31, 2016. Based on the information we have today, the $63.6 million fund balance as compared to the $206 million total liability as of June 2015, we are currently funded at 31 percent. An updated actuarial report is expected in late 2017.

Limiting future liabilities - As mentioned earlier, over the past year, the City has negotiated new contracts with its bargaining units, with the goal of capping unfunded liabilities and slowing payroll growth. As a result, the defined benefit retiree health benefit was eliminated in 2012 for new "Tier 3" employees and replaced with a defined contribution benefit after five years of employment. These new employees are required to contribute into a Retirement Health Savings account that can be used for future medical, dental, and vision expenses after retirement.

The following chart shows the forecast funding level for the OPEB Trust, assuming the City continues to fund at the current 3 percent level. The blue line reflects the required 8.1 percent ($12 million) of salary funding level and the red line represents the current 3 percent ($7.6 million) level as it is increased due to the new policy.


Actual vs Required General Fun


Pension or "PERS" costs - Costs for the employee pension plan are related to the:

  • Particular retirement plans the City participates in,
  • Annual contribution made by the City and the employees, and
  • Returns experienced in the stock market.

The latest actuarial report identifies a $165 million unfunded liability for "miscellaneous" (non-public safety) employees and a $71 million unfunded liability for public safety employees for a total of $236 million. The annual payment to PERS for pension costs is calculated by PERS and sent to its member agencies. As has been the case in previous years, the FY2017-18 proposed budget will fully fund the payment due to PERS for the fiscal year.

Looking forward, in order to reduce, and ultimately eliminate, the unfunded liabilities that cities currently have, PERS has developed an accelerated payment plan that is expected to eliminate the unfunded liability in approximately 25 years. The actions taken by PERS to correct the unfunded liability will result in cities being required to fund higher annual costs as PERS recalculates the requirements each year. As an example, the increased cost for the City of Roseville for FY2016-17 totals $3.4 million, which includes $2.2 million for the General Fund.

Other outside influences on labor costs—Proactive management of expenses continues to play a key role, especially for labor costs. Although the City has some control over salary costs, several components are outside its control, including the following:

  • Increases in the mandated minimum wage that will add salary and benefit expenses to our compensation costs, as well as those of our vendors (which will be passed on to the City), and
  • The future of the Affordable Care Act, which affects healthcare expenses for temporary employees.
  • While difficult to forecast at this time, the FY2017-18 proposed budget will fund the expected impact of these cost increases for the fiscal year. These forecasts will be refined as the full impact is realized.

Funding Issues for Future Consideration


Actions taken toward fiscal soundness during FY2016-17

Capital Improvement Plan and Rehabilitation of Assets - During the FY2016-17 fiscal year, City staff completed a project to overhaul the process by which it identifies and funds the ongoing replacement of assets.

This effort created an accounting system that fully accounts for all assets that the City is required to replace in future years, including when and how much they will cost. These costs are now incorporated into the operating budgets for all appropriate departments. This effort has resulted in a number of important improvements to the current system:

  • Creation of a centralized database of all assets including life span and cost,
  • Development of a replacement-funding mechanism for all assets,
  • An accurate picture of the full cost of running each department,
  • Reduction or elimination of the need for one-time exaggerated bumps in the budget, making future budgets smoother, and
  • Reduction or elimination of last-minute scrambling for funds.

Internal Service Funds - The City has successfully used the concept of an internal service fund (ISF) for certain citywide expenses. The calculation and tracking of these expenses is performed in a centralized manner, in which the identification and funding of the costs are clearly presented. These costs are funded, via the operating budget, by the department that actually incurs the expense. An excellent example of this is the Automotive Replacement Fund (ARF). During the FY2016-17, City staff completed the task of creating ISFs for the IT Department and the Building Maintenance and Facilities Division. As with the ARF, this effort:

  • Created an accurate assessment of the costs of delivering these services, and
  • Transferred responsibility for identifying the funding of the expenses to the users of the services.

 

Cost-Recovery Fee Strategy - The collection of fees reimburses the City for expenses requested by a single party, as compared to the public at large. Fairly allocating service costs creates value and predictability for our customers. Fees are created to ensure equity: Those who benefit from the service should pay for the service. During FY2016-17, staff completed a thorough study of the fee-based services provided by the City. This study determined the total cost of providing each service as well as the current cost-recovery level.

In addition it compared our fees with neighboring or similar jurisdictions, and recommended appropriate fees and charges based on the analysis. The data was assembled into a single, comprehensive book of all fees charged for services and was approved by the City Council.

Based on current projections, along with a 2 percent Consumer Price Index adjustment, these user fees are expected to generate an additional $350,000 in FY2017- 18 to help recover the costs to provide services that are currently being subsidized by the General Fund.


Increased Level of Emergency Reserves - In accordance with City Council policy, the City maintains a reserve level of 10 percent of the General Fund’s total estimated operating costs. Potentially increasing the emergency reserve level to three months’ worth, or 25 percent, of total expenditure would strengthen the City’s ability to weather economic downturns and also allow the City to achieve the lowest cost of borrowing. Finance staff has identified this as a long term goal.

Although it is not feasible to accomplish this in the near term, redistributing excess funds each year from the prior year’s budget will help build these reserves. Currently, the City’s General Obligation Bond rating stands at AA+ from Standard & Poor’s; and increasing the reserves can help the City achieve the next (and highest) rating possible of AAA, thereby lowering the City’s borrowing costs.

 

Economic Development

Programs that retain, attract, and help expand businesses in Roseville are important to creating jobs and a vibrant local economy.

Last year, work was completed on many new projects, including a new Federal Bureau of Investigation field office, new Sutter medical office buildings, Top Golf entertainment complex, the Falls Event Center, iFly indoor skydiving facility and completion of a new building at 316 Vernon Street to provide office space for City services, classroom space for Sierra College, and ground-floor retail space.

Having completed an assessment of City-owned properties this past fiscal year, the City also will be formalizing its property-management, lease, and sale strategies.

In FY2017-18 we anticipate progress toward construction of the following:

  • Adventist Health corporate headquarters,
  • A new medical office building for Kaiser Permanente at Riverside Avenue and Cirby Way (to replace the current facility)
  • An animal adoption center for the Placer Society for the Prevention of Cruelty to Animals (SPCA)
  • A new parking garage downtown at Washington and Oak streets,
  • A new Fire Station 1,
  • Additional office space on Eureka Road as part of the Pappas Medical Office Building project,
  • Campus Oaks Apartments is a two-phased project totaling 395 units including 87 affordable units,
  • Avia Apartments is a 300-unit market-rate project,
  • Mercy Housing is constructing a 58-unit affordable apartment complex,
  • Elliott Homes is starting Veranda within Stoneridge which includes 149 detached single family homes of which 69 are affordable,
  • West Roseville is expected to continue a growing production of single family homes by multiple builders, and
  • An expansion of the Sutter Hospital emergency room and critical care areas.

We continue to partner with housing agencies to provide additional affordable-housing options in our community in excess of the General Plan policy of 10 percent of new units being affordable. Pending funding from the State, the City may see the start of construction on Meta Housing’s 75-unit affordable housing project on Main Street.

The City continues discussions with the St. Anton Partners to explore the opportunity to develop an 80-unit affordable housing project on Pacific Street in the Historic District. The St. Anton Partners project may come before the City Council for consideration later in 2017. In addition, the City continues to work with Placer Valley Tourism (PVT) to develop a regional multi-use sports complex in west Roseville, which could include an events center.

On the residential side, staff is working on the annexation agreement for the Amoruso Ranch Specific Plan in the northwest area of the city with 2,906 residential units, and overseeing the installation of the major infrastructure for the Campus Oaks project that is adjacent to Hewlett-Packard, with 948 residential units.

In addition to these plans, it is anticipated that there will be an additional 900 single-family residential building permits issued for this next fiscal year, the majority of which will be on the west side of town in the West Roseville Specific Plan. This absorption will enhance opportunities for additional private-sector retail growth.


Public-Private Partnerships

Advantage Roseville—In 2012, the Roseville Community Development Corporation (RCDC) recruited 21 local partner companies to form Advantage Roseville, a three-year public-private partnership. The goal of Advantage Roseville is to grow Roseville’s economy by attracting new businesses and by retaining and expanding existing businesses. In 2016, Advantage Roseville continued the program with three levels of private financial participation and a $100,000 contribution from the City. Since inception, the Advantage Roseville campaign has raised Roseville’s brand awareness throughout the state and has participated in the attraction of over 3,000 new jobs with an estimated annual payroll in excess of $120 million and capital investment of more than $400 million.

For FY2017-18 Advantage Roseville is budgeted for a 50 percent reduction in funding. The reduction in funding is due in part to the success of the program as there is less need to recruit and promote the City’s business value and a greater need for staff to focus on servicing the business leads currently being received. The program has been focused on those activities that have proven to be high value and provide a return and these programs can be accomplished at the reduced funding level.

Higher Education—Two higher education institutions are in various stages of progress with a new or expanding presence in Placer County: Sierra College will be occupying a floor-and-a-half of the new office building at 316 Vernon Street in the fall of 2017, providing a downtown location for higher education that will bring a different demographic and steady stream of students to Roseville’s downtown. Warwick University and its partner, the University Development Foundation, have executed a purchase and sale agreement with the City to acquire Fire Station 1 for the purpose of renovating the site for graduate classes that are anticipated to commence in the fall of 2018.

Hotel-Conference Center—In April 2016, the City Council approved a request for proposal for a hotel and conference center at a City-owned site adjacent to the Galleria. With a goal to find a partner to deliver a full-service hotel and conference center that minimizes any obligation of the City’s General Fund, staff is continuing to discuss options with potential developers.

Placer Valley Tourism (PVT) Sports Complex—The City and PVT continue to review development of a long-field sports complex in west Roseville. At the same time, the City is reviewing a request from PVT to modify the original Management District Plan, which would allow the organization to fund multiple projects in the approved work plan, including the sports complex and an indoor events center at the Placer County Fairgrounds.

A determination on the requested changes, along with approval of the permitting for the sports complex, should be finalized in early Summer 2017. At that time, if the requests and the permits are both approved, the PVT Board could consider moving forward with the sports complex as originally envisioned or funding multiple projects in the approved work plan and directing a portion of the assessments to assist the City in building a smaller, natural-turf sports complex.

Placer Society for the Prevention of Cruelty to Animals (SPCA) Animal Care facility— Since 1994, the City has contracted with the SPCA for animal shelter services. With the City’s growth in population, the SPCA has experienced a significant increase in the number of Roseville animals accepted, predicating the need to expand SPCA’s capacity. Currently, 88 percent of the animals processed at the Corporation Yard facility are attributable to Roseville. Completion is anticipated in late 2017.


Investing in our community

Increased code enforcement—At its goals workshop for FY2016-17, the Council discussed the importance of expanding code-enforcement efforts throughout the community to address citizen concerns and improve community vitality. To address this priority, the FY2016-17 budget added an additional full-time code-enforcement officer. At a ratio of one officer per 38,000 residents, this position aligns code-enforcement staffing on a per capita basis with staffing levels in other similar jurisdictions.

It also allows the City to provide a timely response to complaints as the population continues to grow. Additional code-enforcement initiatives and ordinance amendments implemented in FY2016-17 include the re-establishment of the Nuisance Abatement Team, implementing a citywide complaint-tracking system, and increasing sign enforcement. In addition, the City updated the municipal code to address the following: the definition of public nuisances, parking in front yards, parking of commercial vehicles in residential-zone districts, and the use of A-frame signs.

Funding neighborhood improvements—The City Council confirmed at its goals workshop that the enhancement of core neighborhoods—its newest council goal—would require the identification of a revenue source outside of the General Fund. To this end, staff will explore if core neighborhoods are willing to assess themselves for new improvements and ongoing maintenance costs consistent with those required of newer neighborhoods. The newer neighborhoods have assessments for either landscape and lighting districts or community facilities districts on their property tax bills, which pay for a significant amount of common-area landscaping throughout the city. Property owners can determine and tailor the level of service and aesthetics they desire for their neighborhoods and vote to assess themselves accordingly.

Neighborhood standards vary throughout the City, and all areas have the opportunity to vote to adjust assessments. When the core neighborhoods were built, these costs came from the General Fund, which continues at some level to this day. With the challenges that exist in maintaining the City’s core services (Police, Fire, Parks, Public Works, etc.), continued funding has become unsustainable with current revenue streams.

Funding Housing needs—The Roseville Housing Authority, operated by the City of Roseville, administers the U.S. Department of Housing and Urban Development’s (HUD) Housing Choice Voucher rental-assistance program. Participants can also take advantage of the Roseville Housing Authority’s Family Self-Sufficiency program, which provides incentives to maintain employment by offering an interest-bearing savings account with the goal of becoming financially self-sufficient. Roseville’s Housing Authority was named a high-performing agency by HUD for the 14th consecutive year—the highest rating available to local housing agencies.

This rating gives the Authority a competitive advantage in its efforts to bring more federal funds to the Roseville community. Currently, the Roseville Housing Authority provides safe and clean housing for 663 families through rental assistance from the Housing Choice Voucher Program, the City’s single strongest tool to prevent homelessness in our city.

The program brings about $5 million a year to the Roseville economy that gets recycled through jobs and further investment and includes focused vouchers for non-elderly disabled individuals and veterans who are homeless or at-risk of homelessness.

Addressing Homelessness—The City administers or contributes more than $6 million in resources annually to provide affordable housing, assist in the prevention of homelessness, and fund services to those in need. The City’s support of the affordable housing project being built this year by Mercy Housing brings this year’s annual City contribution to more than $11 million, as detailed below.

The City supports and collaborates with federal agencies, county staff, and local service providers to reduce and prevent homelessness locally, including emergency shelter, food, clothing, and even basic medical needs. In addition, the City has been active in advocating with agencies at the federal level on this issue and in securing additional funding on this front for homeless veterans.

Local awards of federal Community Development Block Grant funds allow the City to provide financial support for homeless programs, food programs, mental-health programs, children and youth programs, home-buying and property-rehabilitation programs, and community-benefit organizations. Additionally, the City has a Red Cross-approved Severe Weather Plan in place to provide cooling centers or warming centers in times of need.

This year, the City used funding set aside for homelessness prevention and rapid rehousing from the former redevelopment agency as a match for a $250,000 grant from Sutter Health’s Getting to Zero Campaign on homelessness. Through this new grant program, the City was able to award $500,000 to local service providers who work to prevent and end homelessness, as well as to provide additional support for other existing services.

The City also provided $5.76 million toward the construction of affordable housing units by Mercy Housing at 623 Vernon Street. This will add 58 affordable apartments to the downtown housing inventory, including extremely-low and very-low income units that can assist households who are homeless or at-risk of homelessness due to housing instability.

During FY2016-17, the City has been participating regularly in countywide and regional meetings on how to address homelessness, including the local continuum of care and county-hosted meetings, as well as Sutter Health’s regional collaborative on this issue. The City completed an assessment on the local homeless population in an effort to better understand needs within Roseville’s homeless population and the City actively volunteered and contributed to the 2017 Point-in-Time Count to count and measure local homeless individuals’ characteristics and needs.

This information is informing the City’s introduction of the Homeless Prevention and Rapid Rehousing funding locally that will be awarded going forward based on measureable outcomes and resulting data. Local shifts in the City’s response to homelessness have included:

  • The introduction of a Social Services Unit (SSU) at the Police Department that partners with Housing staff and makes services referrals in an effort to connect homeless individuals and families to assistance,
  • The creation of a Roseville Housing Services team that includes SSU staff, Housing staff, and local service providers, who meet monthly in order to further collaboration and communication amongst providers and local referring agencies
  • Active participation and successful grant funding support from Sutter Health’s regional Getting to Zero campaign to end homelessness,
  • Infusion of the City’s Homeless Prevention and Rapid Rehousing funds and matching Sutter Health funds, totaling $500,000, into the local community for activities that prevent and reduce homelessness, thereby reducing more costly demands in the community on emergency shelter, emergency rooms, and public safety response.

The City’s ongoing and expanded efforts in response to homelessness are actively being measured and will be further assessed as part of funding awards next year, but at present, the City is engaged and acknowledged as an active partner in responding to this need.

Sound and Stable Utilities

Having well-run, reliable, and low-cost City-owned utilities has proven to be a significant economic advantage to the city and its businesses over the years. As a full-service city, Roseville owns and operates its own electric, water, wastewater, and solid waste utilities through Roseville Electric Utility and Environmental Utilities (EU).

Key utility decisions are under the control of a single entity, which makes the planning, development and operation of utility services more efficient, synergistic, and reliable. This benefits customers with rates among the lowest in the region, the highest levels of reliability and quality with a relentless focus on planned expansion, and proactive renewal or replacement of utility assets.

To ensure fiscal soundness—one of the City Council’s priorities—all utilities have implemented strategies to increase their economic reserves to stabilize rates, address long-term infrastructure needs, and limit exposure to costs and regulations outside our control. In addition, as changes in technology and regulations impact the business model used to determine rates, utilities will remain vigilant about ensuring that rates accurately reflect usage by avoiding situations in which certain customer groups inadvertently subsidize other groups of customers.

Legislation and Regulation

While the City owns and operates a number of diverse utility services, the one aspect all City utilities have in common is external regulation. Each of our utility services are highly regulated by state and federal agencies and routinely subject to legislative and judicial orders which are expensive and sometimes interfere with local control. The City deals with this reality strategically on two fronts:

1) The City develops and drives a comprehensive legislative and regulatory platform, which promotes balanced and pragmatic approaches. We work hard to understand the issues, develop relationships, and advance or protect our customer’s interests accordingly. The City is a leader of several legislative advocacy alliances on the regional, state, and federal level that combine the strength of their unified voice to advocate for utility customers.

2) While new regulations can be challenging and costly to implement, the City actively looks for opportunities that derive increased value from regulations to further benefit our customers. Because our utilities operate as integrated businesses, we can sometimes turn what might look like a daunting regulatory mandate into a synergistic business opportunity. An example of this is our organic food waste to biogas energy program currently under development that will leverage our need to divert organic solid waste against our ability to convert this waste to energy at our wastewater treatment plants.

Highlights of each utility’s focus areas for FY2017-18 are listed below.


Roseville Electric Utility

Advanced Metering Infrastructure (AMI) or "Smart Meters"—Most of California’s homes and businesses have smart meters to measure multiple aspects of electricity and natural gas usage at any time of the day or night. Smart meters can measure the time of day that energy is used, send messages to customers with information about their usage, and allow customers to check usage during the month, instead of after the fact when they receive their bill. In 2017, the Utility will continue its proposed multi-year plan to modernize customers’ meters with the selection of a smart-meter vendor. Following the implementation of a robust outreach plan with customers, and with City Council approval, customer meters will be upgraded in 2018.
Sierra Vista Specific Plan Substation—As the Roseville community grows, so must the Utility’s electric distribution system. Following approval of the Sierra Vista Specific Plan, plans were put in place to expand the distribution system to accommodate new construction in this area. The Utility will begin final design of the new substation within the Sierra Vista Specific Plan Area in 2017. It is anticipated that construction will be completed in 2019. Developer fees will be used to fund construction. This will be the first new substation built since 2007.
Electric Rate Plans— Consistent with the City Council’s priority for sound and stable utilities, the Utility prepares financial and energy forecasts annually and reviews the need for rate changes every two years. In 2017, the Utility will complete its review to ensure that adequate revenue is available to maintain Roseville’s highly reliable electric system and services. If rate changes are needed, the proposed rate changes will be presented to the City Council for approval in late 2017.
Hydro-Electric Surcharge—Because of above-average precipitation levels near the City’s hydroelectric power plants again this year, the Utility does not expect to implement the hydroelectric surcharge. The ordinance allowing an electric hydroelectric surcharge was adopted in 2009 as a way to partially fund the purchase of replacement electricity that was not provided from hydroelectric resources due to lower-than-average precipitation.
Community-Solar Pilot Project— Roseville residents will have an opportunity to participate in Roseville’s first community-solar pilot project, tentatively scheduled to go live within the next year. The project will also help to meet renewable-energy requirements for the Utility. Upon City Council approval, the selected vendor will construct the solar project and customers will be able to participate on a voluntary basis.
Electric Vehicles— As State and Federal initiatives continue to advance the electrification of transportation, staff has initiated a research project to better understand distribution system impacts and guide the development of electric vehicle programs and services. Research and development began in 2017 and the results and findings will assist with electric vehicle related efforts in the future.


Environmental Utilities: Water, Wastewater, Solid Waste

Rate Plans —Consistent with the City Council’s priority for sound and stable utilities, Environmental Utilities (EU) prepares financial, supply, and demand forecasts annually and reviews the need for rate changes every two years. In 2017, EU is proposing utility rate increases for water, wastewater and solid waste services. The rate increases will help maintain financial resiliency, offset infrastructure maintenance and rehabilitation costs, and comply with current and future unfunded mandates—all of which ensure high levels of customer service and reliable utility services. Proposed rate adjustments would generate a total monthly utility bill increase of about $5.09 per household effective July 1, 2017 and $5.42 beginning July 1, 2018. This is an average 5.4 percent increase for all three utilities in the first 12 months, and an additional 5.5 percent the following year.

Water Utility
Long Term Goals:

  • Effectively manage statewide drought regulations and develop water-use measures appropriate for Roseville water customers in light of local water-supply availability.
  • Continue water-reliability planning efforts including the Ophir Water Treatment Plant and the RiverArc project with Placer County Water Agency and others.
  • Comprehensively evolve our capacity-fee program to include recycled water and water reliability projects for the future. Begin preparing for the next cycle of utility rate adjustments as needed ensuring stability across long-term financial plan and key fiscal policies.
  • Stay in front of external movements, including California Water Fix, long-term water-use efficiency policy, and the State Water Resources Control Board’s tributary flow proceedings, to protect the interests of the City and the region while forging new partnerships and alliances to advance Northern California’s water reliability.

Water Reliability—As California emerges from prolonged drought, policy attention is needed to address California’s ongoing water-supply challenges. Staff is developing a long-term, integrated resource plan to ensure Roseville’s continued water-supply reliability, focusing on regulatory change and needed water-infrastructure partnerships and investments. These partnerships include collaboration with other water agency partners and the Regional Water Authority on a regional water-supply reliability plan and a communications and advocacy strategy that will chart the course for water-supply development over the next 30 years.

Special emphasis will be on development of an infrastructure plan to increase access to water from Placer County Water Agency. A high certainty level in future water supplies is a key factor to continued investment in our region. This will increase economic vitality, attract more high-paying and diverse jobs, and raise the region’s standard of living. Roseville continues to proactively address water-supply issues, and protect the interests of rate payers and the community. Although an adequate supply of surface water for the coming year is expected, some conservation measures are expected to continue.

Capacity-Fee Program—Roseville has a long standing policy that growth pays its own way and brings new water supplies to benefit the entire City, not just the proposed development. In addressing the issue of paying for regional water reliability, the City continues to use a combination of developer-paid fees (through capacity fees and/or community facilities districts) and water-user rates. EU is currently in the planning process to review the next generation of capacity fees to address water reliability and recycled water. To accomplish this, EU will propose a variety of approaches and options, both internally and externally, for meeting current and future needs. EU expects extensive outreach and education efforts as fees in general are sensitive, and capacity fees can be difficult to understand.

Groundwater—The Sustainable Groundwater Management Act (SGMA), passed in 2014, requires the formation of a Groundwater Sustainability Agency (GSA) to define and better protect California’s groundwater aquifers. This includes the development of a Groundwater Sustainability Plan (GSP) by 2022. Several steps are required under SGMA, the first of which is forming a GSA to manage the local groundwater basin. The City and partners in western Placer County have been active in groundwater management for the last decade and are well-positioned to meet newly adopted state requirements. After formation of the GSA in mid-2017, the West Placer Groundwater Sustainability Agency, including Roseville and its partners overlying the North American groundwater subbasin, will begin efforts in FY2017-18 to prepare a comprehensive regional groundwater sustainability plan.

Site Reservoir JPA—The City of Roseville and the Placer County Water Agency joined the Sites Reservoir Joint Powers Authority (JPA) in January 2017. When the proposed 1.8 million acre-feet Sites Reservoir project is completed in 2029, the JPA efforts will help ensure operations are well coordinated and will allow Folsom Reservoir to retain higher levels of water storage. These efforts will benefit the Bay-Delta environment and the citizens of Placer County.


Wastewater Utility

Treatment Plant Improvements — The Pleasant Grove Wastewater Treatment Plant (WWTP) is in the design phase for planned expansion to serve the growing needs of South Placer County. Delayed by the recent economic downturn, this expansion includes improvements that expand treatment capacity and reduce odors. The Dry Creek WWTP is similarly undergoing plant-process changes to better meet NPDES discharge-permit requirements. Lastly, both treatment plants are being equipped with biogas systems to capture produced methane and in turn use that energy for compressed natural gas (CNG) offsetting fleet fuel costs and electric power demands. The City is also in the initial stages of investigating advanced recycled water treatment technologies and exploring ways to better use and store recycled water that is treated to even higher standards in the future.
Recycled Water—In the upcoming fiscal year, EU will further initiate its effort to develop a long-term strategy to transition recycled water from the wastewater utility to the water utility. Since its inception in the 1990s, we have learned that incentivized rates for recycled water are no longer required because demand for recycled water exceeds supply, and recycled-water service is now depended upon and planned like other utilities. The strategy will support recycled-water service plans that include rehabilitation funding and the development of a construction fund for building major transmission, storage, and pumping infrastructure—much like how the other utilities operate.


Solid Waste Utility
Diversion of Organic Materials from Landfills—In 2014, the California State Legislature passed AB 1826, which required the diversion of organic materials from landfills. In FY2016-17, EU’s solid waste division initiated a program to handle this waste stream to comply with these regulations, with the goal to increase program participation over time. In the next fiscal year, EU will continue to expand the program based on regulatory requirements. Because of the program, EU recycles approximately 20 tons of food waste weekly, and that number is expected to increase exponentially as the program includes more food waste generators in the city this year and beyond.
Anaerobic Digesters — On a parallel track, the long-planned expansion of the Pleasant Grove WWTP is through the design phase, and it features infrastructure to better process biosolids, including anaerobic digesters. Anaerobic digestion processes can be improved by 30 percent by adding organic food waste and fats, oils and grease (FOG), while also increasing methane gas production. The methane gas will be converted to electricity (to meet or offset power needs) or compressed natural gas (CNG). The available CNG will benefit the utility as the solid waste division is in the process of converting its truck fleet to renewable CNG to meet AB 32 carbon-emission regulations.


Roseville Utility Exploration Center

Located in the same building as the Martha Riley Library—the City’s first LEED Gold Certified green building—the Roseville Utility Exploration Center is a one-of-a-kind environmental learning center funded by Roseville Electric Utility and Environmental Utilities. It provides information on protecting natural resources in a fun and engaging way through hands-on exhibits, activities, school tours, presentations, and workshops.

In FY2017-18, the Utility Exploration Center will update its five-year strategic plan to shape and influence the renewal of interior exhibits and development of the outdoor, interpretive garden to benefit public engagement with the Utilities. The plan will include an operations and funding forecast and will ensure educational messaging is aligned with Roseville Electric Utility and Environmental Utilities programs and services.

A Great Downtown

For the better part of Roseville’s first hundred years, the downtown cityscape remained constant. But for the past 15 years, changes have been profound, and they continue. Guiding development is the Downtown Specific Plan, the result of a five-year community visioning process, adopted in 2009.

In 2010, Roseville City Council formally prioritized a great downtown as one of its goals. Based on the specific plan, the City has completed significant projects this past year and more are underway. The next phase of transformation includes construction of a new fire station, parking garage, bridges over Dry Creek, and the extension of the bike trail. Recently completed were the office building at 316 Vernon Street, the popular Vernon Street Town Square and the roundabout at Washington Boulevard and Oak Street. Before that, Riverside Avenue and Historic Old Town debuted streetscapes, façade improvements, public art, and upgraded electric, water, and wastewater infrastructure.

At its FY2017-18 Council Goals Workshop, the City Council noted that with the completion of these projects, the City’s primary role in downtown transformation—to improve infrastructure in a way that sets the table for private investment—will be accomplished. It is anticipated at that point that the private sector, instead of the City, will take over as the primary driver of additional transformation that occurs downtown. The City will remain engaged, continuing to support and assist private investment in downtown through services and programs.

316 Vernon Street Office Building—The four-story, 83,000-square-foot building was completed in December 2016 in less than 12 months and approximately $1 million under budget. The building is home to five City departments and Sierra College, which signed a five-year lease with an additional five-year option for a floor-and-a-half of the building to bring its public-safety academy and community-education programs to Downtown Roseville. Leasing for the 6,000 square feet of ground floor retail is currently under way. Adding a student mix to downtown’s visitors will help support businesses and promote a vibrant atmosphere. Owning the building instead of leasing it reduces the burden on the General Fund, as the construction cost is being repaid through tenant lease payments and low-interest debt repaid by development fees.

Oak Street Parking Garage—As interest in Downtown Roseville continues to grow, so does the need for additional, convenient parking. The Oak Street Parking Facility, a seven-level, 420+ stall parking garage, is under construction between Vernon and Oak streets, behind the Roseville Theater. The project design includes an architectural style consistent with the Civic Center and a variety of exterior pedestrian improvements designed to enhance the visual and physical connections between the structure and Downtown Roseville. Funding for the garage was provided by redevelopment bond proceeds, public facilities fee, and a low-interest loan that will be repaid by future proceeds from the downtown development-impact fee.

Fire Station No. 1—Construction for a new fire station broke ground in April 2017 at Oak and Lincoln streets, with funding coming from development-impact fees. The structure currently housing the downtown fire station was purchased by Warwick University in March 2017 with the intent of establishing a graduate-school campus in Roseville’s downtown.

Pedestrian Bridges and Bike Trails—As envisioned by the Specific Plan, a future development would activate the creek with a mix of office, retail, restaurant, and residential uses, taking advantage of a natural creek and the adjacent citywide park. Three pedestrian bridges are planned to cross Dry Creek to more easily connect downtown with Royer Park and connect the bike trail network through the downtown. Funding for these projects comes from federal, state, and local transportation grants and development-impact fees. 

The existing Rube Nelson or "Ice House" Bridge will be lifted from its current location and placed in the Oak Street parking lot to be cleaned and painted. New planking, lighting and fencing will be added, then it will be replaced over Dry Creek at a new angle, landing on the other side of the Veterans Hall. The bike trail ending in Royer Park will be extended across the Ice House Bridge and connect to Oak Street. Due to higher than expected bid results due to an excess of winter repair projects throughout the state, the majority of this work will likely be delayed until the spring of 2018. However, removal of some storage sheds and stream bank grading are still planned for this summer.

The Library Replacement Bridge will be constructed near the downtown Library, also connecting to Royer Park. Similar to the Rube Nelson Bridge, this work will likely be delayed until the spring of 2018.

Extension of the bike trail from downtown to Miner’s Ravine is scheduled for 2017, resulting in a continuous six-mile, off-street trail from Sierra College Boulevard to Downtown Roseville, that will continue through Royer Park and Saugstad Park to Darling Way with the completion of the Rube Nelson Bridge project in 2018. A third, larger pedestrian bridge crossing Dry Creek is planned in the middle of the other two bridges. This bridge promotes two significant concepts of the Specific Plan: creating connectivity between activities on Vernon Street and events in Royer Park, and providing additional event space for an active downtown scene. The width of the bridge will allow for vendors along the side during festivals and events. This bridge is in final design and in need of additional funding before it can be constructed.

Downtown Programming—The City has expanded programming in the Vernon Street Town Square to include events in the shoulder seasons, such as sing-a-long movie nights and cultural food events; and the City continues to bring new, local bands to the downtown. With about 250 events planned for the year, the City is intent on partnering more with local businesses and organizations to transition operation and programming responsibilities in the future. In March 2017, in partnership with Blue Line Arts and the Downtown Roseville Partnership, the City applied for designation as a California Cultural District through the California Arts Commission. The purpose of the program is to cultivate authentic and sustainable cultural districts that reflect the breadth and diversity of California’s extensive cultural assets.

Downtown and Historic District Housing—Long a goal of the City, several key projects are underway. With City assistance, construction has begun on Mercy Housing’s 58-unit affordable housing project on Vernon Street. On Pacific Street, St. Anton Partners’ 80-unit affordable housing project in the Historic District continues to be processed. And the 85-unit Main Street Plaza Project has been approved by the City and is working on construction financing. The City has pledged $5.3 million to the Mercy project, $4.7 million to the St. Anton Project, and $2.1 million to the Meta Housing Main Street Plaza Project. All of the pledged funds are derived from housing funds that are restricted solely for the development of affordable housing and similar qualifying activities.

Downtown Roseville Partnership—In 2014, a Property and Business Improvement District (PBID) was voted on and approved by downtown property owners. This district substantially increases the funds available to market, promote, and improve Downtown Roseville. The PBID, known as the Downtown Roseville Partnership, plays a critical role in growing downtown businesses, attracting new businesses, and encouraging additional business development. The City contributes each year in the form of parcel assessments for City-owned property in Downtown Roseville, with a FY2016-17 assessment of $69,730, subject to an annual increase of up to 3 percent.

The Downtown Roseville Partnership has provided year-round illumination of main corridor trees along Vernon Street, installed new street banners and solar-powered BigGulp trash compactors, pressure-washed sidewalks through the district, became the premier sponsor for the return of Downtown Tuesday Night, forged a partnership with Gathering Inn to create a guide/day porter program, contracted for leaf removal from parking bays, partnered with the RCDC and Advantage Roseville to install window clings on vacant storefronts, created an events calendar and business directory which is available on the recently launched Godowntownroseville.com.

Enhancing Rail Service between Roseville and Sacramento — The City continues to work with Capitol Corridor Joint Powers Authority to bring additional rail service to Roseville. Over the next year, the City will be evaluating parking and circulation needs within the Historic Old Town and will be bringing forward a memorandum of understanding to support the future addition of two more roundtrips from Roseville to Sacramento—bringing the total to three roundtrips daily. This will be the first phase of this project with the ultimate goal to establish 10 daily roundtrips. It is anticipated that the first phase will be instituted within the next three to five years.

Infrastructure

Well-maintained city streets, roads, parks, and recreation centers help protect property values and maintain Roseville’s quality of life. It is fiscally responsible to maintain our streets and roads, so they don’t deteriorate and become more costly to repair in the future. In addition to roads and facilities, the focus on infrastructure also includes utilities infrastructure, workforce infrastructure, and technology infrastructure.

Facility and Equipment Infrastructure

After several years of deferring maintenance on City-owned buildings and recreation facilities, the needs are becoming more critical and will be a priority when new expenses are considered. The City’s CIP Rehab Fund that funds these types of expenses should be funded annually at $3.5 million to meet the demand, but the City can only afford to fund it at $1.1 million a year. The City is evaluating strategies to increase revenues to fund this shortfall, and future budgets will need to be mindful of this obligation.


Technology Infrastructure

The Information Technology (IT) Department’s FY2017-18 Strategic Work Plan aligns business technology investments and efforts with the needs of the City and its customers. With many of the City’s systems reaching end-of-life, continued upgrades will be required to support current business functions as well as the demand to modernize key business functions. The following major technology projects will be important focus points this next fiscal year.

Examples of citywide business system projects:

  • Public safety handheld radio replacement
  • Installation of east site radio tower for handheld radio operability
  • Financial and human resources information system replacement

Examples of departmental business system projects:

  • Utilities advanced metering infrastructure (AMI)
  • Public Safety 9-1-1 emergency dispatch software
  • Transit passenger information intelligence system

To support these projects and future needs, the IT Department is refining the Strategic Technology Replacement Plan for a long-term, proactive approach to upgrade and replace key infrastructure technologies throughout the City. The City’s CIP Rehab Fund that funds existing technology needs in the City should be funded annually at $2.1 million to meet the demand, but the City can only afford to fund it at $498,000 a year. If adequately funded and implemented, this 10-year strategic replacement plan and the corresponding replacement fund will allow the IT Department to ensure the continued reliable operation of City and community infrastructure.

With 13.1 million threat attempts last year, cybersecurity is a high priority. The City collects, processes, and stores a great deal of confidential information on computers and transmits that data securely across private and public (cloud) networks. These networks continue to experience an increase in both volume and sophistication of cyber-attacks. In addition, of the 50.8 million emails the City receives a year, only 5.2 million (9 percent) are valid – the rest contain malware or are spam or junk mail.

In summary, the CIP Rehab total requirement for funding equipment, facilities, and technology is $5.6 million on an annual basis, but the City can only afford $1.6 million for FY2017-18.

Utility Infrastructure

Aging infrastructure is a chronic issue plaguing the United States and most of the developed world. The funding to pay for replacing the infrastructure our country and economy depend upon simply is not there at a national or statewide level. Roseville’s utility infrastructure—power plants, treatment plants, power lines, pipelines, pump stations, substations and the like—are valued well into the multi-billions of dollars.

While new growth pays for additional utility capacity and service extensions, the ongoing cost of proactive infrastructure maintenance, renewal, and replacement factors heavily into our bi-annual utility-rate analyses. The City sets high standards and invests in high-quality materials then uses asset-management practices to ensure our infrastructure is efficiently cared for and maintained. Roseville’s utilities are among the few that have fully funded their infrastructure-rehabilitation program now and into the future. This means Roseville utility customers will be able to count on our utility infrastructure for many generations to come.

Roadway Infrastructure

Funding Challenges—Funding challenges for roadway infrastructure have caused the City to fall behind on its maintenance schedule for streets. Currently, roadway maintenance is about $50 million underfunded. Gas-tax rates, accrued on a per-gallon basis, were developed without an adjustment for inflation, minimizing their purchasing power with every year that passes. Gas-tax revenues have fallen also due to more fuel-efficient vehicles being on the road, reducing the demand for gasoline.

In an attempt to shore up roadway infrastructure funding, the Placer County Transportation Planning Agency (PCTPA), along with its member jurisdictions, worked to place Measure M, a transportation sales-tax initiative, on the 2016 November ballot. While the measure was successful in Roseville (69 percent in favor), Rocklin (69 percent in favor), Lincoln (72 percent in favor), and the western unincorporated areas of the County, it did not receive the 66 percent countywide majority necessary to pass a local transportation sales tax. Because of the urgent need for additional infrastructure funding, PCTPA is evaluating the ability to create a transportation sales tax district that will include only those cities and areas of the county that supported Measure M.

Funding Outlook—The City budgeted $13.37 million in FY2016-17 for roadway maintenance, which addresses the reconstruction of 3.7 miles of roadway. For FY2017-18, the City is budgeting another $7.27 million for 16 miles of roadway resurfacing. Funding for FY2018-19 and beyond are expected to return to the normal $4 million to $5 million level. FY2015-16 and FY2016-17 are an anomaly and have unusually high dollar amounts due to a number of factors described below:

  • This summer’s storm-drain work has been planned for several years. Over that time, the City has accumulated over $2 million in the storm-drain account which will provide over 4,500 feet of storm-drain repair/ upgrades.
  • The City obtained a Federal Congestion Mitigation and Air Quality (CMAQ) grant to help fund handicap-ramp improvements.
  • Several projects, including the roller compacted concrete pilot project, are being funded from a one-time $6.5 million contribution from the Local Transportation Fund.
  • Two non-gas tax-funded capital improvement projects are paying for some of the street reconstruction work.

Examples of FY2018-19 non-maintenance roadway infrastructure projects:

  • Caltrans deemed the aging Oakridge Bridge over Linda Creek as insufficient and in need of replacement. Funding for reconstruction is being provided by the federal government.
  • The Louis/Orlando Transfer Point Project will completely reconstruct Louis Lane using state and federal grants.
  • The Sierra Gardens Transfer Point Project will completely reconstruct Sierra Gardens from Sunrise Avenue to Santa Clara Drive using Local Transit Funds.
  • Identified in the City’s General Plan and Capital Improvement Project plan, the Woodcreek Oaks Widening Project will add a second northbound and southbound lane to the median of Woodcreek Oaks Boulevard between Crimson Ridge Way and Pleasant Grove Boulevard using $6.7 million in developer-paid Traffic Mitigation Fees.


Roller-Compacted Concrete
— The City is also piloting the use of roller-compacted concrete, which will be tested at several locations in FY2017-18 where existing asphalt roadways are failing. It offers many benefits, including maintenance every 20-25 years, versus every 7-10 years for asphalt; lower construction cost, which helps the City close the current gas tax funding gap while allowing the City to repair more Roseville streets; and cooler roads during the day with brighter roads at night due to its lighter color.


Workforce Infrastructure

Staff Expansion—Growth in Roseville’s economy, development, and population means an expansion of services. Over the past 10 years, the City has expanded services at the same time it has reduced staff. In 2008, the population of Roseville was 109,154 and is projected to be 138,150 in FY2017-18, a 27 percent increase that necessitates an expansion of services. Yet at the same time, on a per capita basis, this equates to a 22 percent reduction in staffing over the past 10 years since General Fund staffing decreased from 778 full-time equivalent employees to 608.6.

As the demand for core services expands, we will be working with the community to determine service levels that reflect the reality that the City needs to live within its means. As a service provider, the City’s highest General Fund cost is labor. With one of Council’s goals being fiscal soundness, the City and its labor groups, including management, have worked hard over the past several years to manage labor costs. The changes we’ve made together still allow the City of Roseville to attract and retain competent, dedicated people to serve our community.

Controlling Labor Costs — The City started working several years ago on ways to ensure our organization lives within its means. It’s an important undertaking given that labor-related costs account for almost 75 percent of the City’s $141 million General Fund, which pays for a variety of services including fire, police, parks, recreation, library, and public works. Ensuring consistency among labor groups within our workforce and developing strategies to contain costs have been key focus areas. In partnership with our labor groups, we took proactive steps, which included:

  • Controlling pension costs by transferring the responsibility to employees to fund 100 percent of the employees’ share of pension costs: This has significantly reduced pressure on the City’s budget.
  • Capping liability for retiree health benefits: A defined-contribution plan is offered to new employees instead of the defined-benefit plan that previously existed. This means that employees, along with the City, contribute to saving for their retiree-medical benefits; and that the City’s cost associated with the defined-benefit plan will eventually be zero.
  • Setting salary-level targets at median levels in labor-market comparison: Salary schedules for new employees have been reduced up to 21 percent in some cases to reflect median salaries in the labor market, instead of upper-end levels.
  • Reducing the rate of increases within each salary range: The previous pay scales allowed for 5 percent increases between each step in a salary range. Now, new employees are eligible for increases no greater than 2.5 percent between each step in the range. This extends the time it takes to reach the highest level in the pay range, which can now be up to 15 years; slowing the growth rate of this expense.

Succession Planning—Over the next three years approximately 36 percent of the workforce is eligible to retire. The City continues to see its workforce retire with 44 employees retiring in 2016, and approximately 30 or more employees potentially retiring in 2017. In response, the City continues to focus on succession planning to ensure continuity of service delivery and streamlining its recruitment process to be more flexible and responsive. The recruitment process has been evolving to leverage new channels of recruiting through outreach and social media in order to reach a multi-generational workforce. Departments are increasing efforts to cross train and transfer knowledge related to City processes and programs to prepare for the ongoing retirements of the baby boomer generation.

Supervisory Academy—After a three-year hiatus, the City—in support of succession planning—launched its Effective Supervisory Practices program in March 2017. This nine-week "academy" is led by department heads and offers insight and recommendations about the day-to-day duties of supervisors. Addressing the more complex challenges all managers are faced with, City leaders seek to share their perspective in effective communication, motivation, and the importance of making ethical decisions as Roseville builds its organization of tomorrow. Participants include representatives from various departments, allowing cross-departmental information to be shared. Thirty colleagues, that would not likely have an opportunity to work together, are engaged in topics that build relationships to strengthen city operations. The academy is planned to continue to be offered twice annually


Continuing to Develop a Welcoming, Engaged Culture

In 2014, the City created an Organizational Culture & Leadership (OC&L) Committee with representatives from all departments to lead an assessment of the City’s organizational culture. Three focus areas emerged from surveys of employees: internal communications, valuing employees, and developing meaningful processes and policies.

Customer-Service Training — The OC&L Committee established a sub-committee to refresh a citywide customer-service training program scheduled to kick off in the summer of 2017.

Identification of Core Competencies — In May 2016, each employee was invited to take a survey and rank 38 competencies. The results provided six core competencies that will be the foundation of identifying what characteristics make employees successful within our organization. Collectively, we will begin to infuse these into our recruitment and assessment processes, make them part of our new evaluation system and incorporate into customer service training and onboarding programs. Future efforts will include establishing the behaviors necessary for an individual contributor, supervisor, manager, and executive.

Diversity Training — The City’s Inclusion Committee was instrumental in establishing a diversity training for all supervisors and managers in FY2015-16. In FY 2016- 17, 28 staff went through a three-day certification to become internal facilitators of an Appreciating Differences Program. Appreciating differences in colleagues and the residents we serve fosters an inclusive and productive work environment. Having internal staff conduct the program allows the City to continue to engage our workforce in creating the Roseville of tomorrow.

Employee-Recognition Program — The Employee Recognition Committee continues to provide venues for acknowledging those within our workforce who exceed performance expectations and set the standard for customer-service excellence. Individuals or teams can be nominated for outstanding work performance, innovation, emergency response, outstanding leadership, customer service, and community service. Each fall, the mayor and City Council present awards to the winners, in recognition of providing top-quality service to the Roseville’s residents, businesses, and visitors. Additionally, the committee coordinates a winter and summer luncheon that allows employees the opportunity to gather, eat, and celebrate the work we do, a small way of saying thank you for being a part of the Roseville family.

Legislative Advocacy

Increasing costs from federal and state regulation and new legislation affect the fiscal health of the City and reduce the level of funds available for other community priorities. The City has taken a strong, proactive role to increase its visibility and influence within the region and at the state and federal levels, opening the door to greater engagement and dialogue with federal and state decision-makers on issues affecting the City’s fiscal health.

The City Council has set a legislative platform that focuses on preserving local control, providing financial flexibility, preventing unfunded mandates, protecting residents and businesses from costly state and federal regulations. It also prioritizes protecting the General Fund, enterprise funds and local sales-tax and property-tax revenues.

Key issues in FY2017-18 include the reliability of Roseville’s water supply, including regulatory change and water-infrastructure investment; electric utility issues, including cap-and-trade program changes, renewable-energy portfolio standards, and net metering; ensuring the tax-exempt status of municipal bonds remains in effect; and ensuring permitting processes at the state and federal levels will not unnecessarily hinder the ability of development projects to gain approval.

To increase effectiveness of the City’s efforts in these areas and others, the City works extensively with regional coalitions, forums, alliances, and established organizations such as the Sacramento Area Council of Governments, the SacMetro Chamber of Commerce, the League of California Cities, the California Municipal Utilities Association, the Northern California Power Agency, and the Water Forum, along with ad hoc groups developed to address concerns with specific legislation.

The City Council’s only standing committee, the Law & Regulation Committee, offers another way people can be informed about and comment on issues affecting the Roseville community from a state and federal level.

Key issues the City is working on this year include the following:

Cal Water Fix (Formerly Known as the Bay Delta Conservation Plan)—Uncertainty in the City’s water supply and reliability would negatively affect the region’s economic vitality.

Federal and State Funding for Infrastructure and Transportation Projects—Preserving or increasing funding for these types of projects and improvements is critical for the City’s ability to upgrade and maintain roadways and meet future infrastructure and transportation demands.

Water Public Goods Charge—The City is increasingly concerned with the Legislature’s interest in imposing a Water Public Goods Charge (SB 20) that would collect revenue from local ratepayers and allocate the money for statewide projects that provide no direct benefit to Roseville’s ratepayers.

One-Size-Fits-All Approach to Water Conservation Targets—The City is concerned that the state will extend conservation targets that do not consider variations in climate, land-use, and other region-specific attributes; that fail to recognize previous water-supply reliability and conservation investments by the region and local community; and that do not account for potential relief from positive weather outcomes. This could negatively affect the City’s ability to attract and retain businesses, impacting our economic vitality.

Cost-Effective Utilities—Having well-run, reliable, and low-cost City-owned utilities has proven to be a significant economic advantage to the city and its businesses over the years. As a full-service city, Roseville owns and operates its own electric, water, wastewater, and solid waste utilities through Roseville Electric Utility and Environmental Utilities (EU).

Key utility decisions are under the City’s control, which makes the planning, development and operation of utility services more efficient and reliable. This benefits customers with rates among the lowest in the region, the highest levels of reliability and quality with a relentless focus on planned expansion, and proactive renewal or replacement of utility assets.

The ability to provide reliable and cost-effective utilities to the residents and businesses of Roseville continues to be a central concern for the City as new state and federal mandates are proposed that would increase the cost of operating the utilities.

Cybersecurity—Future attacks on the City’s technology infrastructure along with state and federal laws regarding cybersecurity will continue to affect the City and the community. Implementing new cybersecurity requirements will add significant costs to the operation of the City’s information technology systems.

Changes to Tax-Exempt Status of Municipal Tax Bonds— Any proposals that would cap or eliminate the tax exemption on municipal bonds would significantly reduce the City’s ability to finance major projects that provide a public benefit. This would negatively and severely impact the City’s budget, increase rates for utility customers, and hinder the City’s ability to finance and construct public projects that benefit the community.

Changes in Electric-Industry Regulation—The City is monitoring legislation on many fronts in the electric industry, including cap-and-trade program changes, renewable energy portfolio standards, net metering, and financing for residential and commercial clean-energy upgrades through property assessments.

Modifications to Government-Operated Mortgage Programs—The City will remain active in understanding the changes being considered at the federal level to modify government-operated mortgage programs, tax-deductions and to write new banking regulations regarding mortgage-related lending programs. These all have the potential to impact the fragile housing recovery throughout the region and the state.

Challenges with State and Federal Permitting Processes—The City has concerns with various permitting processes at both the state and federal level that impact the ability of development projects to gain approval within a reasonable amount of time.

Preserving Sales Tax Revenue—As the public’s buying habits change, the City’s sales tax growth has slowed. This reduction has affected the City’s ability to fund core services. The City is interested in discussions regarding local tax systems, revenue losses due to decreases in sales tax revenue as a result of online purchasing, and the fundamental shift from purchasing taxable commodities, such as music CDs and video DVDs, to purchasing non-taxable services, such as music and video streaming services.

Homelessness—The City will remain active in addressing the needs of the City’s homeless population with a primary focus of reducing the population of chronically homeless by providing solutions that address the fundamental causes of homelessness and by supporting solutions that provide permanent housing.

Municipal-Based District Elections — The City has concerns regarding the possibility of legislation that would require all cities to change to a district-based election system and would remove the ability to determine the election system that works best for a specific city from the local community and their elected officials.

Civic Engagement

The City is passionate about helping our communities engage in making informed, balanced decisions about the place we live.

To build a strong community, it’s important to encourage dialogue from an array of interests, particularly as government activities have recently moved from afterthought to top-of-mind. The evolution of communication created a level of awareness that hasn’t existed before. More people are engaged in policy decisions, but not necessarily with accurate information. Ensuring that facts and context are available in the realms where people get their information is a strategic priority of the City’s civic-engagement efforts.

Engage Roseville: A Community Conversation about Priorities

Different perspectives, insightful dialogue, and new solutions emerge when there’s a shared commitment to understanding each other. For these reasons, civic engagement is the intent of an effort the City Council initiated at its FY2017-18 Council Goals Workshop to engage the community in prioritizing city services and levels of service that are expected within projected budget constraints. In addition to establishing a Community Priorities Advisory Committee (CPAC), the City will engage in broad outreach to provide opportunities for online and in-person engagement. Updates on this effort and broadcast of all CPAC meetings will be available on the City’s website at www.roseville.ca.us/engageroseville.


Neighborhood Outreach

For many years, the City has worked with its neighborhood associations to encourage an open dialogue that has fueled innovation and engagement. The Public Affairs & Communications Department attends monthly meetings of both the Roseville Coalition of Neighborhood Associations and the Sun City Government Affairs Committee; the Police Department has an officer at each of the two dozen or so monthly neighborhood association meetings; and Development Services Department provides notification, overview, and presentations on new development projects as they are proposed. Development Services also provides information on ordinance updates and code-enforcement processes and procedures on a regular basis.

City representatives work with the Roseville Chamber of Commerce and various civic groups, industry associations, and public-interest forums to raise awareness of community issues and broaden the discussion on solutions. At the same time, City Council members host town hall-style meetings called "Council Coffees," where they engage in informal discussion with community members on topics of interest, ensuring another opportunity for the community to join the conversation.


Online Outreach

The effort continues from there into the digital realm. The City is exploring opportunities to use newer technologies such as Facebook Live and online town halls to enhance opportunities for information sharing between government and the people it serves. The City’s online e-notify service offers free e-mail subscriptions on a range of topics from traffic alerts and public safety to policy items. The City is actively engaged in a variety of social media channels: Facebook, NextDoor, Twitter, Instagram, YouTube, and Pinterest, which also offer the opportunity for two-way interaction.

Launched in FY2014-15, the Open Data Portal offers a single website location where City data can be accessed. Initial data sets include often-requested items such as permits and crime statistics. As we expand this base to include more data, this will provide round-the-clock access to City data and reduce the amount of time spent filling regular requests for public records.

Core Neighborhoods

At its Council Goals Workshop for the FY2017-18 budget, the City Council added Core Neighborhoods to its list of council goals and confirmed that the enhancement of core neighborhoods would require the identification of a revenue source outside of the General Fund.

Funding

To this end, staff will explore if core neighborhoods are willing to assess themselves for new improvements and ongoing maintenance costs consistent with those required of newer neighborhoods. The newer neighborhoods have assessments for either landscape and lighting districts or community facilities districts on their property tax bills, which pay for a significant amount of common-area landscaping throughout the city. Property owners can determine and tailor the level of service and aesthetics they desire for their neighborhoods and vote to assess themselves accordingly.

Neighborhood standards vary throughout the city, and all areas have the opportunity to vote to adjust assessments. When the core neighborhoods were built, these costs came from the General Fund, which continues at some level to this day. With the challenges that exist in maintaining the City’s core services (police, fire, public works, parks, recreation, libraries, and development services), continued funding has become unsustainable with current revenue streams.

Community-Based Grants

This goal also brings a focus on grant-funding opportunities that will enhance the environment in core neighborhoods. The Health Education Council, with participation from the City, was selected in 2016 as one of 50 cities from throughout the U.S. by the Robert Wood Johnson Foundation for an Invest Health grant aimed at improving health in low-income neighborhoods.

Recognizing that the majority of health outcomes are driven by where people live, work, play, shop and learn, the Invest Health initiative seeks to improve health through cross-sector community collaborations that can foster and develop more healthful environments. The team is performing assessments within core neighborhoods, meeting with businesses and residents, and identifying potential partners in the healthcare industry and Roseville Electric. One of its early efforts is working with Roseville Electric to improve street lighting in certain areas to enhance the safety of the environment.

Council Discretionary Funds

The Council has previously used its discretionary funding to underwrite a neighborhood large-item disposal event in a core neighborhood. This event brought neighbors together helping each other with beautifying their individual homes and common areas by removing oversized items and debris.

Neighborhood Investment

City Housing and Economic Development Department staff have been concentrating federal Community Development Block Grant Funds into the following programs and projects that benefit core neighborhoods:

  • New lighting in the Historic Old Town,
  • Curb cuts and ramps on Church Street and in Roseville Heights,
  • Demolition of the Roseville Hotel on Main Street,
  • Low-income homeowner paint program providing $700 per household to repaint home exteriors,
  • Owner-occupied rehabilitation program to address health and safety items and needed rehabilitation in homes,
  • Handyperson program that assists with minor safety and ADA modifications,
  • GRID Alternatives Solar Installation for low-income homeowners, and
  • Rehabilitation work for the Johnson Pool.

Recent outreach efforts have focused on core area neighborhoods for the exterior paint program. The City also utilizes additional funding for local first-time homebuyer loans to low-income buyers, which have assisted buyers in the purchase of a core neighborhood home. And for renters, the City’s Housing Choice Voucher Program, administered through the Roseville Housing Authority, also reinvests into the core of the city through the infusion of rental housing payments.