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Attachment 2 Memo To: Roseville City Council Pat Trudgeon, City Manager From: Michelle Pietrick, Finance Director Date: November 7, 2024 Re: Projected 2024 Budget Surplus/Deficit for Unrestricted Operating Funds Background The City Council is expected to adopt the final 2025 Budget and Tax Levy at the December 2, 2024, meeting. The City Council has adopted an Operating Fund Cash Reserve Policy and implemented a Cash Reserve Fund. To assist the City Council in making a final levy decision, staff has prepared projected year-end financial results for the CityÓs unrestricted operating funds. Audited Projected ProjectedProjected 12/31/2023 2024 12/31/202412/31/202412/31/202312/31/2023 CashSurplusCashReservesVariance fromVariance from Operating Fund Reserves(Deficit)ReservesLevelLow TargetHigh Target General: Primary 7,902,026$ 400,000$ 8,302,026$ 32.20%(723,002)$ (4,590,872)$ General: Cash Reserve Fund -972,349 972,349 Parks & Recreation1,884,440 18,435 1,902,875 29.65%619,524$ (22,153)$ Communications 72,768 24,000 96,768 14.26%28,895$ (106,853)$ License Center 307,929 250,000 557,929 22.41%309,018$ 184,563$ Cash Reserve Target Levels TargetTarget Operating FundLowHigh General (unrestricted portion)35%50% Parks & Recreation20%30% Communications10%30% License Center10%15% It should be noted that these projections are based on preliminary financial results through October 31, 2024, along with estimated financial activity for the remainder of the year. For the General Fund, the margin of error is +/- 3% ($400,000) that can be expected given these assumptions. The License Center has seen increased activity and is requesting staffing changes in the 2025 budget to meet the increases. This fund will likely end 2024 with a positive fund balance. The reserve target is 10-15% of the expenditure budget. 1 Qbhf!36!pg!745