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City of Roseville — 2010 Budget General Purpose Operations The City's general purpose operations include the City's police, fire, streets and pathways, parks and recreation, and general administrative and finance functions. For purposes of this financial plan, it excludes general facilities such as City Hall, Public Works Building, and all fire stations. Which have typically been financed with voter - approved bonds. In contrast to the City's water and sewer operations, general purpose functions are provided for by a variety of funding sources most notably, property taxes. Each year, a portion of the property tax levy is set aside for future capital replacements. The remaining is used for day -to -day operations. For financial planning purposes, the City looks at operations and capital investments separately. The financial plan for each of these categories is discussed in greater detail below. Operations Over the next 10 years, the City's general purpose operations are projected to collectively grow 4.9% per year, from $15.6 million in estimated expenditures in 2009 to $23.3 million in 2019. This assumes that the City will continue providing the same services and levels of services as it currently does. The projections incorporate increases in personnel, supplies & materials, and other operating costs including contracted legal and other professional services. Projected cost increases by major category for the general purpose functions are as follows: ❖ Personnel costs - 5% thru 2012; and 4% thereafter ❖ Supplies and materials - 2% ❖ Other services and charges - 2% ❖ Minor equipment — 50% thru 2014; and 25% thereafter The projected cost increases through 2019 are comparable to actual increases realized in prior years. To accommodate these additional costs, operating revenues rates will need to increase by a corresponding amount. For General Fund activities including police, fire, streets, etc., revenues will need to increase as follows: ❖ Property taxes — 5% ❖ Licenses and permits — 2% ❖ Court fines — 2% ❖ Intergovernmental — 2% ❖ Charges for services — 2% •'• Other — I% For Parks & Recreation activities including recreation programs and park maintenance, revenues will need to increase as follows: ❖ Property taxes — 5.5% ❖ Charges for services — 3% Property taxes are needed to increase at a faster rate for the Parks & Recreation activities because it lacks any substantive cash reserves to buffer cost increases. F61M