Roseville receives clean audit; officials note rising long‑term liabilities and reliance on property tax

Ali Hejazi, a partner with Plant Moran, told the Roseville City Council on Jan. 13 that the firm issued a clean, unmodified opinion on the city’s financial statements for the year ending June 30, 2025. "That's the highest level of assurance that we can issue on a set of financial statements," Hejazi said.

Alyssa Fleury, the audit manager, walked the council through summary slides showing a roughly $4.7 million decline in total revenue from 2024 to 2025, largely because one‑time American Rescue Plan (ARPA) funds have been spent. Fleury said property taxes now make up about 55% of general‑fund revenue and state and federal sources about 18 percent.

Fleury and Hejazi highlighted that unassigned fund balance increased to about $16 million, noting the city is in a stronger short‑term position than in prior years. "The city has really made outstanding strides toward stabilizing the general fund," Hejazi said, while cautioning that capital needs and transfers can change the picture quickly.

On long‑term obligations, Plant Moran reported about $145 million in unfunded liabilities across pensions and retiree health accounts. The audit showed funding levels of roughly 72% for the general pension plan, about 59% for police and fire retirement, and about 23% for retiree healthcare. Hejazi said the police and fire plan's funding dipped below a 60% threshold that triggers additional reporting requirements under state law and that staff will submit a plan to address it.

Council members asked questions about homestead exemptions, property tax caps and whether new development is needed to grow tax revenue. Hejazi reiterated that statutory caps and uncapping rules limit how much the city benefits from rising property values in an established community.

The council voted to receive and file the audit presentation. The Plant Moran team emphasized that while the city’s immediate financial footing is solid, addressing pension and retiree‑health liabilities will require a sustained, multidecade effort.